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DECEMBER 1945 OUR 50th Y E A R ' : I ! : »■ I ■ V. E . D O L P H E R P re sid e n t, F ir s t N a tio n a l B ank, D avid City, N ebraska P resid en t, N e b rask a B an k ers A ssociation See page 18 How Banks Choose Their Directors https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Page 14 ^ ^ < ir < ^ ^ - « é ^ é - <jr <fe <fe-<?^> > ¿> » » '> ;> » -> » -■> ^ <- ^ < l^ ¿ W here Friendship Counts C orrespondent bank service at this institution is just a s m achine-like a s p ossib le w h en sp e e d a n d a ccu ra cy are at stake. W e recognize, h ow ev er, that y o u w an t free, intim ate treatm ent of your ow n ind ividu al accou nt. That is w h y friendly cou n sel is a lw a y s a v a ila b le to you through M erchants N ational e x ec u tiv es w h o m ake your problem s their problem s. A CEDAR RAPIDS BANK CEDAR < <f < R A P ID S < -< SERVICING A LL IOWA THE MERCHANTS NATIONAL BANK ^ OFF I CERS ■ jE 5 £ 5 E jë S E 1 E I E 5 ^ ^ J am es E . H am ilton , C h a irm a n S. E . Coquillette , P r e s i d e n t H . N . B oyson , V ic e P r e s i d e n t R oy C. F olsom , V ice P r e s i d e n t Mark J . M yers , V . P r e s . & C a s h ie r George F . M iller , V . P r e s . & T r . O fficer Marvin R . S elden , V ice P r e s i d e n t F red W . S m it h , V ic e P r e s i d e n t J o h n T . H amilton I I , V ic e P r e s i d e n t R . W . Man a t t , A s s t. C a s h ie r L . W . B roulik , A s s t. C a s h ie r P etter B ailey , A s s t. C a s h ie r R . D. B row n , A s s t. C a s h ie r O. A . K earney , A s s t. C a s h ie r S tanley J . Mohrbacher , A s s t. C a s h ie r W allace S. H am ilton , B u ild in g Mgr. Cedar Rapids Iow a Member Federal Deposit Insurance Corporation <- g T -T ■x N o r th w e s te r n B a n k e r , p u b lis h e d m o n th ly b y th e D e P u y P u b lis h in g C o m p a n y , a t 527 S e v e n th S tr e e t, D es M o in es, Io w a S u b s c r ip tio n , 35c p e r copy, $3.00 p e r y e a r. E n t e r e d a s S eco n d C la ss M a tt e r J a n u a r y 1, 1895, a t th e P o s t office a t D es M o in es, Io w a , u n d e r A c t o f M a rc h 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the proof of an ideal proof machine T he ideal proof m achine should offer these four advantages. T h e N ational Proof M achine gives them to you . . . this new aid to proof d ep a rtm en ts ... En te rs e v e r y th in g in o n e m a c h in e . . . in c o m in g m a il, c o u n te r tr a n s a c tio n s a n d i n c o m in g c le a rin g s. A ll th e s e o p e ra tio n s are h a n d le d q u ic k ly a n d a c c u ra te ly . P r o v id e s co n tro l of e v e r y de o n e so u rc e w ith th is n e w m a c h in e . M a k e s a c c u r a c y c o m p u ls o r y ! I f a n e rro r is m a d e , th e N a tio n a l P r o o f M a c h in e a u to m a t ic a lly lo c k s , p re v e n tin g th e o p e r a to r fro m e n te rin g th e n e x t d e p o s it. B y p re ssin g th e e rro r k e y , th e a m o u n t o f e r ro r is a u to m a t ic a lly p r in te d o n th e m a s te r ta p e a n d th e c o rre c tio n is m a d e in s ta n tly . N o o th e r m a c h in e h a s th is fe a tu re . G iv e s p o s it iv e p ro o f of e v e r y cre d it to tal. T h is m a c h in e id e n tifie s e a c h d e p o s it s lip , i n c o m in g l e t t e r a n d c le a rin g lis t b y p r in tin g a d e p o s it n u m b e r w h ic h a u to m a tic a lly a d v a n c e s w ith th e e n tr y o f e ac h d e p o s it in th e m a c h in e . IT is a proven fact that the N ational Proof M achine increases proof departm ent effi ciency and aids any bank in giving better ser vice to its customers. c e n t r a liz e d p a rtm e n t. A ll p ro o f fig u res a re c o m p ile d a t N ational system to m eet every need. W hy not have a talk with the N ational representative? Call your local N ational representative or write THERE’S A NATIONAL FOR EVERY BANK AND EVERY BANKING JOB the N ational Cash Register Company, D ayton W hether your bank is large or sm all there’s a 9, Ohio. Offices in principal cities. e / fc a ú o n a ¿ CASH REGISTERS • ADDING MACHINES ACCOUNTING-BOOKKEEPING MACHINES THE O U R 5 0 tn Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N A T IO N A L CASH R EG IS T ER N orthw estern Banker CO. Decem ber 19H 4 Commercial Letters of Credit can increase your bank’s Earnings In crea sin g num bers o f our c o rresp o n d en t banks o p e n , th rou gh us, Letters o f C redit for th eir clien ts to finance in tern a tio n a l and d o m estic shipm ents. T h is b u sin ess is d esira b le fro m the p o in t o f v iew o f ea rn in g s and th e fact that it affords added o p p o rtu nity to serve clien ts. You do not need to m ain tain a foreign departm ent. We fu rn ish the fa c ilitie s a n d arrange the essential d e tails. Our fo rm s a n d procedures are as sim ple as possible a n d require a m inim um of d e ta il work on your p a rt. O ur F oreign D epartm ent has b een an im portant factor for m any years in this field. M anufacturers T rust C om pany Letters o f C redit are ad vised through our several thousand co rresp o n d en t banks abroad and are w e ll k n o w n in all parts o f the w o r ld . B anks h av in g op p o rtu n ities to d ev elo p Letters o f C redit b u sin ess are co rd ia lly in vited to w rite for explanatory data and sp ecim en form s. M a n u f a c t u r e r s T r u st C o m pa n y 55 Broad Street, N ew York 15, N. Y. Me inker F ederal Deposit Insurance Corporation N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decem ber 1945 O U R 50th YEAR R E P R O D U C E D B E L O W IS A S C E N E FR O M 1 H E S P E C T A C L E , " F I G H T IN G T H E ft PR O D U C E D ABOUT 1S>00 A T DREAM LAND, C O N EY f ig h t in g t h e F la m e s G /tfn o tfm e n c tm IS L A N D . f t rJk (9/ie r(oare&d4 FIRE CHIEF COMMENTATOR: True, true — Carelessness is far and away the biggest known cause of fires. Figures show that this menace alone accounts for alm ost all serious fires. COMMENTATOR FIRE CHIEF: But Carelessness can be fought and licked! CARELESSNESS COMMENTATOR: Yes, but only through constant effort. For when people are reminded to be careful, fires fall off. That’s our job! ( Curtain ) CAST OF CHARACTERS: FIRE CHIEF: W e are losing ground— fire is gaining! Every year, it seems, there are more fires and worse fires— more lives lost and greater property damage. Something has to be done! COMMENTATOR: Y ou’re right— f r e is gaining. In the year ending June 30, 1943, $442,877,000 fire damage was reported. That’s 10% over the preceding year and 33°7c increase over the losses tw o years ago. FIRE CHIEF: Carelessness is at the root o f this—that’s the menace we must face. CARELESSNESS: Yes, and what a menace! The flick of a lighted cigarette, a pile o f oily waste— and there I am starting another fire. I’m everywhere and wherever I am, I work. That’s why I, Carelessness, am the chief cause of fires! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F L A M E S ’, Epilogue: THE HOME INSURANCE COMPANY: The best time to fight a fire is before it starts — join the campaign against Carelessness! ( Asbestos ) * THE H O M E * N E W FIRE • Y O R K A U TO M O B ILE • M A R IN E 6 Traffic S ig n a ls are essen tial to the orderly checks must be on safety paper, the n eed m ovem ent of traffic and the prevention of for this product and the w isdom of its use accidents. Practically everyon e recognizes h ave b een clearly dem onstrated. » » L ead th at a n d a c c e p t s it. E v en th o u g h th ere ing banks and b u sin ess m en throughout the w ere no violation of the la w involved, the nation h ave lon g looked upon LA MONTE public a s a w h ole w ould still b e extrem ely Safety Paper a s the most effective and d e careful about driving through a red light. p en d ab le form of protection again st check W h ile th ere is n o la w w h ic h s ta te s that alteration and counterfeiting. For Samples of LaMonte Safety Paper see your Lithographer or Printer —or write us direct. PAPER LA MONTE NUTLEY, NEW JERSEY GEORGE LAMONTE & SON The W a v y Lines are a L a M o n t e Trade M a rk . Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis We su p p ly m an y b a n k s an d b u sin e ss organ ization s with their own i n d i v i d u a l l y i d e n t i f i e d S afe ty Paper. The issu in g org an ization 's Trade-M ark is in the p a p e r itself an d a p p e a rs on both the front an d b a c k of the check. Such i n d i v i d u a l i z e d p a p e r not only protects a g a in st fraud ulen t alteration but p rovid es maximum protection a g a in st counterfeiting —s a v e s B an k s sort in g time —h elp s p reven t errors. December 19'f5 OUR 50th YEAR N o rfm W E J& T E R N N U M B ER 701 FIFTIETH Y E A R O ldest Financial Journal West of the Mississippi River » Question: With the huge war debt hanging over us, do you think a reduction in income taxes is justified at th is time? A. J. Jorgenson, president, The A m erican N ational B ank of Sidney, Sidney, N ebraska: “The huge gov ern m en t debt can only he serviced and paid from profits. “ It is m y opinion th a t g o vernm ent taxes should tak e only a reasonable levy from business profits. “A h ealth y and p rogressive business m u st show som e ‘n e t a fte r ta x e s’. “T axes on in dividual incom es above $1,500 p er y e a r should h ear th e b ru n t of serv icin g and redu cin g th e natio n al debt.” P au l L. Jam es, cashier, F irs t S tate B ank, T hornton, Iowa: “I th in k th a t th e g o v ern m en t fi nances should be ru n on a sound and business-like basis. T he u n n ecessary expenses should be elim inated and provision should be m ade for a re a sonable red u ctio n in th e am o u n t of th e public debt each year. If th e red u ctio n in incom e tax es w ill leave enough in come to c a rry out such a program , it w ill be all rig h t as a p a rtia l ta x relief and as a b u siness stim u lan t. “In m aking an estim ate of th e am o u n t of incom e ta x to be collected, norm al incom e figures should be used in stead of those of in creased incom es w hich m ay or m ay n o t be realized. “If we do n o t reduce incom e taxes w hen conditions p erm it, th e re will be a ten d en cy to in crease g o vernm ent spending.” C. F . Long, cashier, U nion-W hitten S tate Savings Bank, Union, Iowa: “It is really a sm a rt th in g to reduce th e incom e ta x a t th is tim e, giving th e tire d fa rm e r an d m erc h a n t a little spending m oney for relax in g th e ir tense nerv es and aching m uscles from (T u rn to page 38, please) OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN THIS DECEM BER, 1945, ISSUE Editorials A c ro s s t h e D e sk fro m th e P u b l i s h e r -------- ----- ----------------------------- -.................--- 10 Feature Articles W h a t D o Y ou T h in k ? ............ ..................................................................................................... 7 D e a r E d it o r ................................................................................................... ....................... 9 F r o n t i s p a g e .......................................................................... ......... ...................................... ...... 13 14 H o w B a n k s C hoose T h e i r D i r e c t o r s ........................... ...................................... ........ ......... N e w s a n d V ie w s o f th e B a n k in g W o rld ................................. R a lp h W . M o o rh e a d 15 B a n k e r s M a k in g F e w G .I. L o a n s ................................. .................... .B e n H a lle r , J r . 16 P ic tu r e s fro m th e Io w a C o n v e n tio n ....................................... ...... ....... ....................... 17 N e b r a s k a B a n k e r s M e e t in O m a h a ........................... .............................................. ........... 18 P ic tu r e s f r o m t h e N e b r a s k a C o n v e n tio n ......................... .......... ........................-....... 19 “ S a v e t h e S o il” S a y B a n k e r s ........................ .............. ............... ................. 20 C o n fe r on P o s tw a r F i n a n c i n g ......................................... ................. ....... ..... ......... 20 P ic tu r e s fro m th e A . B. A . A g r i c u l t u r a l C o m m issio n M e e tin g ............................ 21 L e g a l— A re W a r S a v in g s B o n d s S u b je c t to C laim s? - .......................................... 22 A b o u t B a n k e r s Y ou K n o w — E d w in F . B u c k le y ......................................................... 25 Bonds and Investments C h e a p M o n e y W ill C o n tin u e ................... ...... ............. ................... R a y m o n d T r ig g e r 33 Insurance T h in g s I ’v e L e a r n e d A b o u t P r o t e c t i o n ..........................................F r a n k O. P o tt e r 41 State Banking News M in n e s o ta N e w s ......................................... . ........................................... ......... ....................... T w in C ity N e w s ....................................... ..................................... E . W . K i e c k h e f e r 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 th D a k o ta N e w s ......................................................................................... N e b r a s k a N e w s .............. ................................... ............. ..... ............................ ....................... B a n k L o b b y R e m o d e le d ................................................ ................ ............................... . O m a h a C l e a r i n g s ............................ ...................... ........................................................... L in c o ln L o c a ls ............................................................................................. Io w a N e w s ..................................................................................... D es M o in e s N e w s ....................................... H o ld C o r r e s p o n d e n t C o n f e r e n c e ................. 45 47 51 51 53 55 57 59 61 63 68 73 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 ....................... .............................................. C o n v e n tio n s ................................................................................... ........ ..... ............. . 74 74 N O R T H W E S T E R N B A N K E R , 527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163 C L IF F O R D D E PU Y, Publisher R A L P H W, M O O R H E A D Associate Publisher E L IZ A B E T H C O L E Advertising Assistant H EN R Y H. H A Y N E S Editor M A R G U E R IT E B R O W N Office Supervisor N EW Y O R K O F F IC E Frank P. Syms, V ic e President, 505 Fifth A v e ., Suite 1806 BEN H A L L E R , Jr. Associate Editor S A D IE E. W A Y Circulation Department Telephone MUrray H ill 2-0326 N orthw estern Banker Decem ber 1945 Quality Cooperation C o r r e s p o n d e n t Banks T o Banks—in other sections of the country and especially in smaller communities —w ishing to enlarge their field of activity, The Philadelphia National is glad to offer quality cooperation, of which these services are typical : Cooperation in the extension of industrial loans. Dependable and experienced representation. A com plete Foreign Department, backed by years of experience in handling the transfer of funds into and out of the country . . . the issuing of Letters o f Credit and collecting on exports. Our long-established contacts in foreign credit centers also permit us to provide immediate information on current prospects and trade trends. If you require these or other services now or contemplate their need in the near future, we shall be pleased to discuss with you in detail the benefits of form ing such a relationship. THE PH ILA D ELPH IA NATIONAL BA NK Organized 180 3 P H I L A D E L P H I A M E M B E R N orthw estern Ranker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F E D E R A L D ecem ber 1945 D E P O S I T I, PA. I N S U R A N C E C O R P O R A T I O N OUR 50th YEAR 9 f The follow in g letters ivere received from N orth w estern B anker readers. Your view s and opin ion s on any su b ject w ill be g la d ly p u b lish ed in this colum n. "Had a Wonderful Time" ‘ ‘ I w a n t to express th e sincere a p p re c i a tio n in b e h a lf o f th e N e b rask a A ssociation officers, M r. M cB ride, M r. D olpher and m yself, fo r th e very e x tra special a tte n tio n received in th e h a n d s o f M r. De P u y and yo u rself d u rin g our visit in Des M oines la st week. I t seemed to us th a t you were con s ta n tly concerned as to our w e lfare and certain ly you gentlem en m ade th e v isit m ost p lea sa n t fo r us. ‘ ‘ M r. M cB ride h a d to ld us o f your effi cient A ssociation S ecretary , P ra n k W arn er, a n d it w as a pleasu re to M r. D olpher and me to m ake his acq u a in ta n ce an d to receive m any fa v o rs fro m him also. C ertain ly P ra n k W arn e r conducted a well m an ag ed conven tion. ’ ’ Carl , G. S w a n so n , S ta te Treasurer, S ta te o f N e b ra s ka, L incoln, N ebraska. bankers, p ro u d o f th a t fa c t, an d because of th a t fa c t, have some id ea of w h a t country bankers them selves w ant. A t le a st t h a t ’s w hat we a re try in g to do, a n d we are m in d fu l o f th e su p p o rt a n d help you have given our pro g ram . N ew com m ission m em bers, an d others as well, have said th ey never saw a com m ission o r com m ittee w here every m em ber took as active a n in te re st. E ach m em ber feels he benefits in d iv id u a lly fro m th is work, an d we hope the re su lts reflect a value to c o u n try b a n k in g as a whole. ’ ’ K . J . M cD onald , P resid en t, Io w a T r u s t and S a v in g s B a n k , B sth erville , Iow a. Cautious W om an m o torist (noticing re p a ir m en clim bing telephone p o le s): Idiots —th ey probably th in k I ’ve n ever d riv en before. Surplus He: 1 see by th e p aper th a t a w om an in Om aha ju st crem ated h e r fo u rth husband. She: Isn ’t th a t alw ays th e way? Some of us can ’t get a m an w hile o thers have husbands to burn. "Cooperation Appreciated" Plainly Put ‘ ‘ T h an k you very m uch fo r th e fine p u b licity given the A ssociation o f B an k W om en in th e N o r th w ester n B a n k e r . Y our co operatio n is very m uch a p p rec ia ted by the association. ’ ’ E t h e l E . M ellor , M em ber P u b lic ity C om m ittee, A sso c i ation o f B a n k W om en. A tiery tem pered so u th ern gentle m an w rote th e follow ing letter: “Sir, m y stenographer, being a lady, cannot type w h at I th in k of you. I, being a gentlem an, cannot th in k it. You, being neither, will u n d erstan d w hat I m ean.” A Personalized G ift Check "On the Wing" ‘ ‘ P lease send me th ree copies of th e p ic tu re ‘ On th e W in g ’ on page 14 of th e O cto ber 1945 issue of th e N o rth w estern B a n k er . “ Y our kindness w ill be m uch a p p re c i ated . ’ ’ W . W. A l l e n , J r ., Vice P resid en t, The P hiladelphia N a tio n a l B a n k, P h ila d e l phia, P ennsylvania. "We're Not Apostles, Just Country Bankers" ‘ ‘ W illiam C. R em pf er, p re sid en t of the F ir s t N a tio n a l B a n k o f P a rk sto n , South D ak o ta, a n d th e new c h airm a n of our C ountry B an k O perations Com mission, is th e genius who o rig in a te d an d developed th e ‘tim e ’ p lan o f cost analy sis b e in g used by th e com m ission. “ N o th in g has c rea te d as m uch n ationw ide in te re s t a n d response fro m c o u n try bankers. P re su m a b ly know ledge o f o p e ratio n a l costs is a b asic p recep t in an y business. H e re to fo re th e expense a n d com plexity o f a ccu rate co u n try b a n k a n aly sis has been pro h ib itiv e. The e x istin g heterogeneous p a tte rn of service charges, in te re s t ra te s a n d b a n k service is p rim a rily a ttrib u ta b le to a lack of know ledge o f costs. The only guide we have h a d to follow has been p re ce d en t based on over-all re su lta n t n e t earn in g s, or th e lack th ereo f. 1‘ The com m ission m em bers a re n o t a bunch o f apostles, j u s t a bunch o f co u n try O U R 5 0 th YEA R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E L IE V IN G t h a t g iv in g g ra c e fu lly is d o u b ly blessed , th e M a n u fa c tu re rs T ru s t C om pany, N ew Y o rk , h a s issu e d a b ra n d new* check, th e G ift C heck, fo r th is C h ristm a s season. I t is th e a n sw e r to th e p ro b lem s o f th e g ro w in g n u m b er of th o u g h tfu l people w ho fe e l t h a t th e b e s t g if t is th e one t h a t p e rm its th e re c ip ie n t h is p e rso n a l choice. I t is a so lu tio n of th e c u rre n t m e rc h a n d ise sh o rta g e w h ich m ak e s se le c tio n o f th e r ig h t g if t fo r th e r ig h t p e rso n so difficult. T h is ch ec k com es as a p e rso n a liz e d , dig n ified g if t, p a c k a g e d in a g re e tin g -c a rd fo ld e r in h o lid a y colors w ith its ow n m a tc h in g envelope. F o r th e p ric e o f a C h ristm a s c a rd i t is a v a ila b le to a n y o n e up o n p a y m e n t o f th e d e sire d g i f t a m o u n t a t th e b a n k ’s m a in office o r b ra n c h e s. So t h a t th e G ift C heck m a y be k e p t as a so u v e n ir, th e c o m p a n y h a s a rra n g e d to re tu r n th é c an c elled check to e ith e r g iv e r or re c ip ie n t. O th e r g i f t checks in a p p ro p ria te w ra p p in g s w ill be issu e d l a t e r fo r E a s te r, b irth d a y s , w e d d in g s, M o th e r ’s D ay , F a t h e r ’s D ay , g ra d u a tio n s , b irth s , w e d d in g a n n iv e rs a rie s a n d o th e r sp e c ia l occasions. B N orthw estern Banker D ecem ber 1945 10 Across the Desk costs and we can wonder when we realize that without us the world today would have been Hitler’s. The sole factor which determined the outcome was this democracy.” Yes, indeed, Mr. W ard, the U nited S tates tu rn e d the tid e in W orld W a r No. II in helping to de feat H itler. As a fighting nation, we did our p a rt in bringing victory to the Allied arms. The question now is, can we still m ake a suc cess out of peace. AVe are certainly not being helped along th a t pathw ay by either the foreign-born citizens or the political term ites in our own country, who would help to destroy the g reatest dem ocracy the w orld has ever known. jb ea si cM cuugaA jj. S to d d a rd : ^ b e a ^ i Q e a s iÿ e . l/U a ^ id : In your rem arks as retiring* president of the W est V irginia B ankers Association, and as vice presid en t of the C harleston N ational B ank, we were glad to hear you speak out in no uncertain term s as to “ Why should anyone seek to make over our nation after the pattern of a European country? What is there anywhere in the evi dence that would justify any such action?’’ The N o r t h w e st e r n B a n k e r has em phasized re peatedly, Mr. W ard, th a t if anyone doesn’t like the U nited States, they are perfectly free to go to any other country of th eir choosing, and t h a t ’s where th ey should go, w hether it is Bussia, E n g land, F ran ce, Ita ly or China, if they do not like to live u n d er the S tars and S tripes and in the lan d w here there is g re ater freedom and a higher p er capita of w ealth th an in any other country u n d er the sun. Y our statem en t was exactly tru e when you re ferred to the “ strange anomaly, foreign born Americans, self-styled leaders of minorities, have come forward and seek to improve upon the na tion which has achieved such monumental ac complishments in peace and in war. They would sow the seeds of collectivism in our national life by making paternalism the order of the day. “ The state would become the parent, respon sible for the welfare of all of the citizens all of the time. Initiative would fade away along with creative effort. “ This is not a new philosophy. It comes from the old world—the one to which we have des perately tried to bring peace at such tremendous N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber Ì9&5 Y our analysis of bank earnings and the question of w hether bank capital funds are now adequate is a very tim ely study. As p resident of the M ichigan N ational B ank of Lansing, you certainly know the p ractical side of banking and in discussing the question, “ Are bank earnings excessive?” , we were interested in your findings th a t “ d uring the past 10-year period, the average net earnings of all commercial banks have been b u t 6.6 per cent, ce rtain ly not an excessive am ount. Increased earnings of 8.5 per cent for 1913, and 9.1 per cent for 1911 on to ta l capital funds do not necessarily forecast a continued increase. As a m atter of fact, probably the high point was reached in 1911, as fu tu re earnings will be adversely affected by (1) a level ing off of increase in deposits, (2) low er in terest ra te s on loans and investm ents as m atu rities are being refunded at low er rates, (3) increased ta x a tion as proportion of tax-exem pt securities de cline, and (1) increased operating expenses. “ The dividend average of 3.1 per cent fo r the 10-year period is very conservative, and it will be noted th a t the ra te has not been increased d u rin g the p ast two years, thus p erm ittin g substan tial in creases to the capital fu n d s.” AAre quite agree w ith you, Air. S toddard , th a t 6.6 per cent fo r the average net earnings of all com m ercial banks durin g the past 10-year period is not out of line, nor can it be considered an ex cessive am ount. Now, as to the adequacy of bank capital, your study indicates th a t “ In 1935 the banks had $1 for capital funds for each $7 of deposits. Ten OUR 50th YEAR 11 From th e P u b lis h e r years later, in 1944, banks had $1 of capital funds for each $15 of deposits. However due to the fact that the increase in deposits has been largely invested in United States Government bonds, the ratio of bank capital to risk assets has not changed in the 10-year period. “ If the capital funds of the nation’s banks were now increased to the ratio of 1935, then earnings would be inadequate to justify the additional in vestment. Whereas in 1935 banks could make a fair return with a deposit leverage of seven to one, today a leverage of 15 to one of deposits to capi tal is required because of the lower yield on loans and investments. “ Unless one views the stability of the Federal debt with misgivings, present bank capital, on the average, appears adequate, as there is no factual evidence to support the belief that r^k assets will increase materially during the coming years, and the policy of retaining one-half to twothirds of earnings in the capital accounts should offset the percentage gain in assets other than Government bonds.” Thus, to sum up your findings, Mr. S toddard, we have noted these points, th a t:— (1) Average earnings for all commercial banks for 10 years has been 6.6 per cent. (2) The dividend average for the 10-year period has been 3.4 per cent. (3) In 1935, banks had $1 of capital funds for each $7 of deposits. (4) Ten years later, in 1944, banks had $1 of capital funds for each $15 of deposits. (5) Since the increase in deposits has been largely invested in government bonds, the ratio of bank capital to risk assets has not changed in the 10-year period. (6) In 1935, banks could make a fair return with a deposit leverage of 7 to 1, but today a lever age of 15 to 1 is required because of lower interest rates. ^b ea b R a ijo U i £ . ty b * n c l,e s i4 ,: As p resident of the F ed eral Reserve B ank of Boston, y our recent statem ent th a t banks should have a percentage of “ marginal loans,” has caused a g reat deal of discussion. You sta te d th at, “ to the ex ten t th a t a local bank serves a local com m unity, to th a t extent will th ere be an increase in the volume of loans of the OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sort in which there m ust be some m eeting of m inds betw een the exam iner and the bank. “ Does not, however, the difficulty come in the borderline cases in which fa ith in the b o r ro w e r’s ch aracter and abilities is the p rim ary ele m ent in the b a n k ’s judgm ent? Such fa ith is more easily brought to a decision by local directors th an it is by an exam ining official from the out side. P erhaps this is the area in which differ ences of opinion will be most serious and most im portant. “ There should be a reasonable percentage of these marginal cases in each bank portfolio if the bank is to be of the greatest service to its com munity. The argument for this is the same as for a reasonable credit policy on sales in the ordinary business. “ The credit m an of a business organization is properly criticized if lie does not have a certain percentage of bad debts. If he does not, it m eans th a t he has tu rn ed down an u n w a rran te d num ber of good m arginal risks. A t the same tim e he m ust not have so m any bad debts th a t w ritin g them off destroys the profits which were received from the successful m arginal cases. AVe are in an area w here good judgm ent m akes the difference between success and fa ilu re .” M arginal loans, Mr. F landers, m ay be a de sirable th in g up to a certain point, but the p ro tection of d ep o sito rs’ funds is the first and param ount d u ty of every banker. AYhen you loan m oney to Mr. Sm ith in your com m unity, you are loaning m oney which the bank has borrow ed from Air. Jones in th a t com m unity, and your first obli gation is to the depositor. Tt is quite tru e th a t good ju d g m en t m akes the difference betw een success and failure, b u t if bankers should m ake too m any m arginal loans or tak e too m any chances in extending credit, fhe criticism s which would be heaped upon them would be trem endous. B ankers m ake m oney by m aking loans and it has been our observation th a t they have been anxious and w illing to m ake every sound and legitim ate loan needed for the tran sactio n of business in th eir comm unities. A nd it is our be lief th a t they will continue to do so w ithout being urged to tak e “ too many chances.” N orthwestern Banker Decem ber 1945 12 (y jjv ¿ U w c jb / Ç ^ O - iJ ic c r üU~e COSYV 2M fjS L u fc u *0 k t ------ íÁ J^ is/y v (AJ^- ^ ¡& u rti/> w u W îi ahcl Trust Compantj-Des/loines M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis e m b e r p. D . I . C . 13 OI K 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthwestern Banker December 1945 14 How Banks Choose Their Directors Executives of Nebraska Banks Name the Qualities They Consider Most Desirable in Selecting Their Directors — A R L IE R y ear T h e N o r t h m ade a su rv ey of a n u m b er of b an k s in an atte m p t to learn in w h at fields the directo rs w ere m ost active and how th ey w ere of m ost service in actual direction of the b a n k ’s affairs. The re sponse to this in q u iry show ed th a t alm ost u nanim ously these b an k s w ere v ery w ell satisfied w ith th e ir selec tion of b an k d irectors and th e job these m en had been doing. - In an effort to find out how these successful boards of d irecto rs are first chosen, T h e N o r t h w e s t e r n B a n k e r has m ade an o th er su rv ey am ong N ebraska b a n k ers in w hich officials w ere asked, “W hat do you consider are th e m ost desirable qualities in the selection of a b ank d irecto r?” The answ ers w hich have come in reflect E w estern th is B a n k er A N o rth w estern B a n ker S u r v e y v ery clearly th a t the reason for the success of these directors in so m any b anks is because of the basis on w hich th ey are chosen. In m ost co u ntry banks it is noted th a t men rep resen tin g the various com m ercial in terests handled by the b an k are m em bers of the board. These m en are in a position th erefo re to solicit business from and explain the b a n k ’s service facilities to th e ir m any custom ers, clients and friends w hile acting in th e ir capacity as farm er, m erch an t or professional m an. T hus it is necessary to carefully select from these different fields m en who are w ell-know n and w hose c h a r acter and ju d g m en t are highly re spected by those w ith w hom th ey do business. These m en w ill be those of course w ho are also leading m em The Lad ¡es Help Celebrate T he a b o v e p ic tu re w as ta k e n of all th e fe m a le em ployes of th e L ive Stock N ation al Bank o f Omaha, upon th e o ccasion of its re c e n t c e le b ra tio n o f th e 50th a n n iv e rs a ry of th e in s titu tio n . M an y of th e gow ns d e p ic t th o se w orn a t th e tu rn of th e c e n tu ry . A lv in Johnson, p re sid e n t of th e L iv e S to ck N a tio n a l B a n k , a d v is e d t h a t its c a p ita l h a s re c e n tly been in c re a se d fro m $300,000 to $400,000,- a n d th e su rp lu s a cc o u n t in c re a se d $50,000 to now to ta l $400,000. N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decem ber 1945 — bers of th e ir com m unity and usually active in local affairs. Coming dow n to th e finer qualifica tions of a good d irector th e re are of course several m ain points th a t m ust be considered in addition to a m an’s value to his com m unity. T hey go han d in h an d generally b u t still m ust be w eighed on th e scales of honest selection. It is of g reat value if the candidate should have some know ledge of the in n er w orkings of a bank; he m u st have good horse sense; he m u st be progressive, capable of alw ays look ing forw ard. Several b an k officials have th e ir an sw ers to th e su rv ey question p rin ted here in w hich th ey give w h at they consider th e m ost desirable qualities in th e selection of a b an k director: H. C. L arson, cashier, Citizens S tate Bank, D ecatur, N ebraska: “The b an k d irecto r should be a p arty th a t u n d erstan d s th e needs of th e com m unity and th e value of various securities, chattels, etc.” G. W . Shafer, Jr., vice president, The F irs t S tate Bank, B eaver City, N ebraska: “To briefly state th e qualities re quired of a director, I w ould consider th e ir business ability, th e ir progessiveness and th e ir p erso n ality .” F. G. Stilgebouer, president, State Bank, B enkelm an, N ebraska: “The m ost desirable qualities I w ould consider w ould be, first, good ch aracter; second, good horse sense, and th ird, loyalty to his tru s t and his b an k .” J. A. S tockw ell, president, F irst N a tional Bank, B ayard, N ebraska: “A bank d irecto r’s selection w ould be m ade first on the basis of in teg rity .” A. E. D w eh us, president, State Bank of D annebrog, D annebrog, N ebraska: “A b an k d irector should be a m an or w om an w ho has e ith er been an executive in a b an k and w ho fully u n d erstan d s th e in te rn a l operating technic and ro u tin e of banking, or has w orked in a b an k and has some com prehensive know ledge of b anking pro cedure.” (T u rn to page 53, please) OUR 50th YEAR 15 N ew s and V iew s O F T H E B A N K IN G W O R L D By Ralph Moorhead, Associate Publisher ESCALATOR BA N K IN G . . . A new w rin k le in ultra-m o d ern b an k in g se rv ice is an nounced by th e N o rth w estern N ational B ank of M inneapolis. E sca lato rs w ill be in stalled a t each end of th e bank lobby w hich extends th ro u g h th e block from Sixth to Seventh S treets on M arquette A venue. The N o rth w e ste rn N ational B ank is one of th e first b an k s in A m erica to p ro vide escalator service. P resid en t J. F. R ingland in ann o u n c ing th e new project to be com pleted in six ty days says it w ill g reatly augm ent th e service already offered by th e six teen b an k elevators in th e beautiful N o rth w e ste rn N ational B ank building. BANKERS R A ISE THE MONEY . . . The Iow a M ethodist H ospital’s Million D ollar B uilding F u n d Cam paign has alread y passed th e half m illion dollar m ark and tw o p ro m in en t Iow a b an k ers have given th e ir finan cial talen ts to th e drive. T hey are W. Harold B renton of Des M oines who heads a th riv in g strin g of Iow a b anks and Jam es W. H ubbell, vice p resid en t of th e B an k ers T ru st Com pany, Des Moines. Mr. B ren to n is gen eral c h a ir m an and Mr. H ubbell is vice chairm an. N ext to th e U n iv ersity H ospital at Iowa City, th e Iow a M ethodist is Iow a’s larg est hospital. FROM RE1) TO D E E P R ED . . . R eceivership is usually g ran ted as a d rastic step tow ard p u ttin g a firm back on its financial feet. R eceivership of th e P ittsburgh, Shaw m u t and N orth ern m ining p ro p erties in P ennsylvania has evidently w orked out in th e oppo site direction. A petition w as recently filed in P ittsb u rg h seeking the rem oval of receiver, .John I). D ickson, New York a tto rn ey w ho held th is job 22 years w hen it w as show n th a t d u rin g th e 40y e a r receivership u nder R eceiver Dick son and tw o predecessors th e com pany w ent deeper in the red, by m ore th an th irty million dollars. B E L IE V E IT OR NOT . . . V eterans w ho w ant first of all a place to live, and secondly an education or vice versa, w ere am azed last m onth to note in Iow a’s daily new spapers an ad ver tisem ent from the U n iv ersity of D u buque headed “U nbelievable B ut T rue —Com fortable D orm itory A ccom m oda tions for m arried students, v eteran s, and o th e rs” in w hich the u n iv ersity says it has v acant q u a rte rs for fifty m arried students. The cost is only $10 p er w eek per person for board and room. The reason for it is th e fact th a t th e school has available q u a rte rs v a cated by its N avy V-12 U nit. AV I T H A M ERICA ’S LARGEST BA N K . . . E ric A. Joh nston, new ly appointed czar for the m otion p icture in d u stry , has been elected a director of th e B ank of A m erica. M arshall Hale, Jr., an o th er Pacific Coast business executive has also been nam ed to the b a n k ’s board. Mr. Johnston, now serv ing as p resid en t of the U nited States C ham ber of Commerce for th e fo u rth year is in tern atio n ally know n. As a (T u rn to page 71, please) Interesting Lobby Displays SE L L IN G AVAR BO NDS TO S A IL ORS . . .Captain C harles Zim m erm an of th e U nited S tates Navy, fo rm er wellknow n Chicago life in su ran ce g eneral ag en t for th e C onnecticut M utual says th a t th e b est sales appeals for th e sale of w a r bonds to n avy p ersonnel w ere th e sim ple appeals. Speaking a t a re cent life in su ran ce convention, he said th a t the best sales appeals for th e sale nev er em phasized th e p atrio tic appeal w hich w as so w idely used in selling to civilians. He said “W e pointed out to th e m arried sailor th a t his w ife w ould w ant a new stove and a frigidaire after th e w ar. T his usually b ro u g h t resu lts. The sailor w ho intended to be m arried a fte r th e w ar w as influenced by telling him about th e new fu rn itu re he would need. To th e th o u san d s of sailors who w ere n e ith e r w ed nor inten d ed to wed, we sim ply said ‘You w a n t a lot of dough for a heck of a binge w hen you get o u t.’ T hat w as th e appeal th a t really p u t th e ir nam es on th e dotted line.” OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H A R A C T E R IZ E D as th e “ Sym bol of a N a t io n ’s G r a titu d e ,” th e S erv ice D isc h a rg e B u tto n is th e th em e fo r th e V ic to ry L o an d isp la y s a t th e v a rio u s offices o f th e B ankers Trust Company o f N ew York. C ustom ers a n d v isito rs, a t th e b a n k ’s offices h a v e m ad e m an y fla tte rin g c o m m en ts upon th e c o lo rfu l a n d v e t dig n ified d e c o ra tio n s. The p h o to g ra p h is a v ie w of th e b a n k in g floor fro m th e W all S tre e t e n tra n c e . T he F i f t h A v en u e office a t 44th S tre e t has a d isp la y of th e S e rv ice D isc h a rg e B u tto n on th e re a r w all of th e m a in b a n k in g floor, w ith th e flag, w hile th e 57th S tre e t office a t M ad iso n A v en u e, uses th e S e rv ice D isc h a rg e B u tto n on th e B ond S ales B oo th to v e ry good effect. A n o th e r fe a tu r e a t 57th S tre e t, is a d e c o ra tiv e b o rd e r of 36 c ita tio n s a n d se rv ice rib b o n s of th e A rm ed Forces a n d M e rc h a n t M a rin e, w hich has a tt r a c t e d a g re a t deal o f a tte n tio n and in te re s t. C N orthwestern Banker Decem ber 19h5 16 Bankers Making Few G . I. Loans — A N o rth w e stern B a n k e r S u r v e y — Slow Processing of Veterans' Applications for Loans Proves One of Main Difficulties, Iowa Bankers Tell Ben Haller, Jr., Associate Editor. Here Are Their Replies. N E W O F F IC E R S O F T H E IO W A B A N K E R S A S S O C IA T IO N — F. L. Saw yers, p re sid e n t, le ft, p re s id e n t of th e C e n te rv ille N a tio n a l B a n k a n d th e S a w y e rs S a v in g s B a n k a t S ey m o u r; a n d W, E. Sheldon, vice p re s id e n t a n d tre a s u re r, p re s id e n t H om e T ru s t & S a v in g s B a n k , O sage. A T T H E 59th an n u al convention of th e Iow a B ankers A ssociation held in Des Moines th is fall, m any b an k ers w ere asked th is ques tion, “A re you m aking any G. I. loans, and if so, h ow m any and for w hat pur p oses?” Indications from those in te r view ed w ere th a t because of various restrictions, differences in appraisal values and th e lengthy tim e elem ent involved, m any re tu rn in g veteran s are being denied loans and becom ing dis h earten ed w ith th e G. I. loan system as it now operates. A T THE IO W A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decem ber 1945 (T urn to page 50, please) BAN KERS C O N V E N T IO N — ..... A n u m b er of th o se a tte n d in g th e 1945 c o n v e n tio n of th e Io w a B a n k e rs A sso c ia tio n are p ic tu re d on th e op p o site page. R e a d in g fro m le f t to r ig h t th e y a re : 1— L. J. D erilinger, vice p re s id e n t a n d c a sh ie r C lin to n N a tio n a l B a n k ; A lden S. Bagnall, v ice p re s id e n t L iv e S to c k N a tio n a l B a n k , C hicago; a n d H. Lee H ouston, v ice p re s id e n t a n d c a sh ie r C olum bus J u n c tio n S ta te B a n k . 2— Guy M. Jackson, C ed ar R a p id s ; O. F. W alker, c a sh ie r G ooselake S a v in g s B a n k ; L, R oy Trout, e x e c u tiv e vice p re sid e n t W e s t B u rlin g to n S a v in g s B a n k ; a n d F ran cis A. Burns, d ire c to r G ooselake S a v in g s B a n k . 3— V. E. Dolpher, p re s id e n t F irs t N a tio n a l B a n k , D a v id C ity, N e b ra s k a , a n d new p re s id e n t N e b ra s k a B a n k e rs A sso c ia tio n ; Carl Sw anson, O m aha, se c re ta ry -e le c t o f th e N e b ra s k a B a n k e rs A s so c ia tio n ; a n d E dgar M cBride, p re s id e n t C om m ercial B a n k , B lue H ill, N e b ra s k a , im m e d ia te p a s t p re s id e n t o f th e N e b ra s k a A s so c ia tio n . 4— W esley T. H eckt, p re s id e n t G ru n d y N a tio n a l B a n k , G ru n d y C e n te r; H arry S. Lekw a, vice p re s id e n t a n d c ash ie r A c k ley S ta te B a n k ; J. A. Barlow , p re s id e n t S ta te B a n k of D u m o n t; a n d E. S. P itm an, c a s h ie r C e n tra l S ta te B a n k , S ta te C en ter. 5— Charles B. Barron, c a s h ie r S ta te B a n k of V in to n ; P. G. F olvag, c a sh ie r B e n to n C o u n ty S a v in g s B a n k , N o r w a y ; G eorge B. E ginton , c a sh ie r S e c u rity T ru st & S a v in g s B a n k , S to rm L a k e ; a n d Paul Groszkruger, p re s id e n t C itiz en s N a tio n a l B a n k , B elle P la in e . N orthwestern Banker Complete rem oval of all red tape from th e p resen t setup w as predicted by th e H onorable P au l C unningham , m em ber of th e U. S. H ouse of R epre sentatives from Des Moines, in his ad dress to convention guests on, “The R evised G. I. Bill of R ights.” In his discussion on this revised bill w hich has passed th e L ow er House and is halfw ay th ro u g h th e Senate, R epre sentative C unningham said th a t no longer w ould a big b u reau be necessary in W ashington, as w ith th e passage of th is bill, the decision as to w h eth er a G. I. loan should be m ade will rest en tirely w ith th e banker. “You are th e court of last reso rt,” he said, “th ere is no appeal.” Dele gates applauded his announcem ent th a t w ith com plete confidence being placed in the ability of th e b an k ers of A m erica to “conscientiously guide and advise these fu tu re leaders of A m er ica,” th ere w ill be no need for any b u reau in W ashington to settle diffi culties. He gave a three-point plan by w hich ban k ers could determ ine the m erit of a v e te ra n ’s application for a loan. Also included in th e revision is can cellation of th e clause effecting a fi— Grover W. Rohlk, p re s id e n t, a n d W. E. P au stian , cash ie r, D on ah u e S a v in g s B a n k ; a n d R obert J. Tank, c a sh ie r C e n tra l T ru s t & S a v in g s B a n k , E ld rid g e . 7— E. C. Fishbaugh, p re s id e n t S e c u rity T ru s t & S a v in g s B a n k , S h e n a n d o a h ; E. W. Jones, v ice p re s id e n t Iowra-D es M oines N a tio n a l B a n k & T ru s t C om pany; J. H. Peterm an, p re s id e n t P a g e C o u n ty S ta te B a n k , C la rin d a ; a n d H. E. Ross, p re s id e n t C ity N a tio n a l B a n k , S h e n a n d o ah . 8— F. J. Iw ert, c a s h ie r M a lv e rn T ru st & S a v in g s B a n k ; an d L. C. D ean, c a sh ie r G lenw ood S ta te B a n k . 9— Richard Dunlap, v ice p re s id e n t C om m erce T ru s t C om pany, K a n sa s C ity ; a n d Carl H ook, Jr., a s s is ta n t v ice p re s id e n t M ississip p i V a lle y Trust C om pany, S t. L ouis. 10— E. E. M arshall, a s s is ta n t c a sh ie r M e r c antile-C om m erce B a n k , S t. L o u is; a n d Frank Fuchs, a s s is ta n t v ice p re s id e n t F i r s t N a tio n a l B a n k , S t. L ouis. 11— T. C. Cannon, Io w a a n d N e b ra s k a m a n a g e r St. P a u l T e rm in a l W a re house C om pany, D es M oines; Charles S. M cK instry, v ice p re s i d e n t N a tio n a l B a n k of W a te rlo o ; Lt. Richard M cK instry, ju s t re tu rn e d fro m E T O a n d hom e on le a v e ; a n d Charles C. R ieger, v ice p re s id e n t M a rq u e tte N a tio n a l B a n k , M in n e a p o b s. 12—Donald A. Harper, a s s is ta n t v ice p re s id e n t F i r s t , W isco n sin N a tio n a l B a n k , M ilw a u k ee ; Frank M. Covert, a s s is ta n t v ice p re sid e n t, G eorge A. M alcolm, p re s id e n t, a n d Fred Cummings, all of th e D ro v e rs N a tio n a l B a n k , C hicago. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 Nebraska Bankers M eet in Omaha V. Eo Dolpher, David City, Elected President of Association, N E W O F F IC E E S O F T H E N E B R A S K A B A N K E R S A S S O C IA T IO N — L o ft, Glen T. Gibson, A sso c ia tio n vice p re sid e n t, p re s id e n t o f th e E x c h a n g e B a n k , G ib b o n ; a n d V. E. Dolpher, p re s id e n t o f th e N e b ra s k a A sso c ia tio n , a n d p re s id e n t o f th e F i r s t N a tio n a l B a n k , D a v id C ity. V E. D OLPHER, p resid en t F irs t . N ational B ank of D avid City, w as elected p resid en t of th e N ebraska B ankers A ssociation a t th e a n n u al con vention in Om aha last m onth. Newlyelected vice p resid en t of th e Associa tion is Glen T. Gibson, p resid en t E x change B ank of Gibbon. Carl G. Sw an son, N ebraska state tre a su re r, w as in troduced as th e secretary-elect, rep lac ing W illiam B. H ughes w ho is resig n ing a fte r 40 years of continuous service as secretary for th e N ebraska B ankers Association. E lected to th e executive com m ittee of th e A ssociation were: F ra n k M. F a rr, cashier F irs t N ational B an k in A urora; A lbert A. Held, vice p resid en t N ational B ank of Com m erce of L in coln; and Ray R. Ridge, vice president The Omaha N ational Bank. R etirin g p resid en t E d g ar M cBride, presid en t Com m ercial B ank of Blue Hill, and Sam C. W augh, executive vice presid en t and tru s t officer The F irs t New Vice President Is Glen T. Gibson, of Gibbon T ru st Co. of Lincoln, w ere nam ed Ne b rask a m em bers of th e E xecutive Council A m erican B ankers Associa tion. O ther officers selected for N e b rask a A.B.A. were: m em ber of nom i n atin g com m ittee, J. D. M illiken, p resi den t F rem o n t N ational Bank; a ltern ate m em ber nom inating com m ittee, O. W. Johnson, vice presid en t B ank of Burwell; vice p resid en t national b ank di vision, B. F. Aron, cashier The City N ational B ank of Crete; vice president state bank division, Clyde H. Sudm an, vice presid en t G uardian State B ank of Alliance; vice presid en t tru s t com pany division, F ra n k J. Cleary, vice p resi d ent and cashier F irst N ational B ank of G rand Island; vice presid en t savings b ank division, Clarence F. W itt, p resi d ent South Omaha Savings Bank. R oderic B. Crane, C hairm an of the D ep artm ent of Econom ics, U niversity of Omaha, in a talk before th e conven tion gave a su rv ey of th e com m on u n d erlying economic tre n d of W ashing ton econom ists. These econom ists he said are g reatly influenced by th e L ord K eynes th eo ry used so extensively in G reat B ritain. T his th eo ry is to keep as m uch m oney as possible in circula tion, th u s necessitating a program of progressively h ig h er tax atio n th e g re a te r a m a n ’s income. He said th is m ight apply to a stag n an t economy like E n g lan d ’s, b u t predicted if au th o rs of congressional legislation continue to follow this trend, inflation will set in causing a re tu rn of price controls. The m uch discussed question of a Chair of B anking for th e U niversity of N ebraska w as th e subject of an ad dress by Dean Jo h n D. Clark, college of business adm in istratio n of N ebraska university. Dean Clark pointed out the need for collegiate education in banking and listed th e advantages ac cruing from a course of special study in banking problem s. In th e open discussion on service to (T u rn to page 56, please) A T THE N EB R A S K A BAN KERS C O N V E N T IO N T hose p ic tu re d on th e o p p o site p a g e a re ju s t a fe w of th e se v e ra l h u n d re d a tte n d in g th e re c e n t a n n u a l c o n v e n tio n o f th e N e b ra s k a B a n k e rs A sso c ia tio n , h e ld la s t m o n th in O m aha. R e ad in g fro m le f t to rig h t th e y a re : 1— Col. J. F rancis M c D erm ott, vice p re s id e n t F i r s t N a tio n a l B a n k , O m a h a; Hon. D w ig h t G riswold, g o v e rn o r of N e b ra s k a ; a n d Col. Edw ard G il lette , new N e b ra s k a s ta te tre a s u re r. 2— L. C. F arw ell, p re s id e n t S ta te B a n k o f D u B o is; J. R. Catron, p re s id e n t F a rm e rs B a n k , N e b ra s k a C ity ; a n d H. Y. Castle, vice p re s id e n t a n d c ash ie r M cD onald S ta te B a n k , N o rth P la tte . 3— S. H. Itzen , c a sh ie r A dam s C o u n ty B a n k , K e n e sa w ; E dgar M cBride, p re s id e n t Com m erc ia l B a n k , B lue H ill, a n d im m e d ia te p a s t p re s id e n t of th e N e b ra s k a A s so c ia tio n ; a n d R. A. W alker, A dam s C ounty B a n k , K e n esaw . 4— J. M. Sorensen, e x e c u tiv e vice p re s id e n t S te p h e n s N a tio n a l B a n k , F re m o n t; a n d Otto K otouc, Sr., p re s id e n t H om e S ta te B a n k , H u m b o ld t. 5— C. W. F ahnestock, p re s id e n t Secur- N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19^5 ity N a tio n a l B a n k , L a u re l; H en ry H. B yers, vice p re s id e n t C h a rle s S. W a lte rs C om pany, O m ah a; a n d E. C. M cElhaney, a s s is ta n t t r u s t officer U n ite d S ta te s N a tio n a l B a n k , O m aha, (i— A lb ert A. H eld, vice p re s id e n t N a tio n a l B a n k of Com m erce, L in c o ln ; B. G. Sh illington, c ash ie r S ta te B a n k of T re n to n ; L loyd Boersma, c a s h ie r F a rm e rs S ta te B a n k , S u p e rio r; a n d E. R. Pont, c a sh ie r H u b b e ll B a n k . 7— A. C. P eterson, c a sh ie r F i r s t S ta te B a n k , L o d g ep o le; H oward M. D oty. S e c u rity M u tu a l L ife , L in c o ln ; J. I. Christiansen, p re s id e n t S even V a lle y s S ta te B a n k , C a lla w a y ; an d K. C. Brown, v ice p re s id e n t B a n k in g H ouse o f A. W. C lark e , P a p illio n . 8— W illiam B. H ughes, s e c re ta ry of th e N e b ra s k a B a n k e rs A sso c ia tio n , a n d Mrs. A rthur Coad, O m aha, c h airw o m an of th e w o m e n ’s a c tiv itie s a t th e c o n v en tio n . 9— A d e le g a tio n fro m th e C e n tra l N a tio n a l B a n k , C olum bus—M aym e V asek, Doris Rade, J. O. P eck, p re s id e n t; Dora Nuerm eister, a n d Edna Wurdeman. O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 "Save the Soil// Say Bankers Soil Conservation Heads 1946 Farm Program of A BA Agricultural Commission H E A m erican B an k ers’ A ssocia to use th e TVA p a tte rn in th e M issouri S tates are rated each y ear on th e basis of co untry b ank activities. South Da tio n ’s A g ricu ltu ral Com m ission has R iver Valley. kota has w on th e aw ard for th e te n th Mr. Bailey is p resid en t of th e F irs t placed soil co nservation at th e top consecutive year. Two h u n d red dollars N ational B ank of C larksville and has of th e ABA’s 1946 farm program . in cash accom panied th e aw ard. The recom m endations w ere p re received in tern atio n al acclaim for his The ABA A g ricultural Commission estab lishm ent of w h at he calls “the sented to th e A g ricu ltu ral Com m is four p illars of incom e on th e farm .” ended its m eeting by nam ing eight sion’s an n u al m eeting in Om aha by com m ittees to carry out a program of In his area, the “p illars” are sheep sold C. W. Bailey of Clarksville, Tenn., cooperation betw een co u n try ban k s in th e spring, w h eat sold in th e sum Com m ission ch airm an and n ex t p re si and farm ers. m er, cattle sold in th e a u tu m n and d en t of th e ABA, and W. W. Campbell, The com m ittee leaders w o rk tow ard tobacco sold in th e w inter. F o re st City, Ark., ch airm an of th e F ra n k C. R ath je of Chicago, p resi keeping ag ricu ltu re financially sound C om m ission’s Soil C onservation Com den t of the ABA, w ho addressed a and developing efficient farm lending m ittee. m ethods. luncheon sponsored by th e Omaha T he Com m ission held a 3-day m eet The com m ittee ch airm en are: C learing H ouse A ssociation, said th a t ing la st m o n th in Omaha. F a rm L and Prices, Jesse W. Tapp, A m erican b an k ers are looking for re M ain points in th e program w ere: San Francisco: T housand-Point R ating tu rn in g v eteran s to provide a new 1. E n courage b anks to extend ade n ational leadership. P rogram , R. N. Downie, G arden City, quate cred it to farm ers and ran ch m en Kans.; County Key B ankers, C. T. “I am confident,” he stated, “th a t for land im provem ent, conservation O’Neill, C harlottesville, Va.; Develop A m erica w ill find th is new leadership practices, and a balanced system of am ong th e m en and w om en w ho have m ent of Efficient F a rm L ending M eth ods, Otis A. Thom pson, N orwick, N. Y.; farm ing. observed p o v erty and m isery am ong 2. E ncourage b anks to extend credit th e people of o th er form s of govern Y outh A ctivities, W a rre n G arst, Jeffer son, Iowa; Soil Conservation, W. W. to p riv ate co n tracto rs and conser m en t.” Sixty-two leaders in ban k in g and ag Campbell, F o rre st City, Ark.; Individ vatio n agencies for th e p u rch ase of ual B ank A ctivities, co-chairm en, E. J. equipm ent needed in establishing con ric u ltu re took p a rt in discussions at Boston, A ngleton, Texas, Oluf Ganth e Om aha m eeting. serv atio n practices upon th e land. drud, Benson, Minn., W illiam C. C hris A special 10-year aw ard w as p re 3. E ncourage th e o rganization of sented to the South D akota B an k ers’ tensen, H illsboro, Ore., and J. C. Cul additional soil conservation d istricts pepper, A lapaha, Ga.; Com m odity Cred A ssociation for “exceptional service by w ith p a rtic u la r em phasis on d istrict developm ent w here th e erosion h az co u n try banks to th e ir farm custom it C orporation Loans, co-chairm en, Jo h n M. Crocker, D ecatur, 111., and ers.” ard s are m ost serious. The aw ard w as p a rt of th e ABA’s F ra n k R. McGeov, Jr., Greenwood, 4. E ncourage sta te and county gov “one thousand-point ra tin g p rogram .” Miss. ern m e n ts to pu rch ase heavy equip m en t to loan, ren t, or g ra n t to soil conservation d istricts and o th er soil conservation agencies. 5. E ncourage, w here necessary, th e clarification and stre n g th e n in g of soil conservation legislation. 6. E ncourage and in itiate conser 500 Bankers Attend Comm erce Trust Company Meeting vatio n education and achievem ent in Kansas City th ro u g h offering aw ards for individual V ER five h u n d red m idw est b an k actually only th ree steps involved in con trib u tio n s in th e field of im proved ers attended th e “C onference on settin g up a consum er credit and in land use, and th ro u g h co-operation stallm en t loan departm ent. T hey are: w ith local schools teach in g conserva P o stw ar F in an cin g ” sponsored by the 1. Develop a sound financial plan. Com m erce T ru st Com pany of K ansas tion. 2. Solicit th e w holesale and retail City, M issouri, last m onth. In an interview , Mr. B ailey ex business to gain volum e. A discussion of “C onsum er Credit pressed opposition to th e constru ctio n 3. C arefully create an organization and In stallm en t L oans” highlighted of additional dam s in th e TVA E m com posed of efficient, capable p e r th e m orning session. W arren A. B ar pire in his n ative S tate of Tennessee. sonnel. re tt, m anager of th e equipm ent, au to “Dams already con stru cted ,” he said, Mr. B a rre tt discussed each of these mobile, appliances and m oderization “took a g reat deal of land out of oper steps th o ro u g h ly m aking freq u en t use finance d ep artm en t of th e Commerce atio n th a t should n ev er hav e been of slides, p ictures and ch arts to em T ru st Company, gave a com prehensive ta k e n out.” phasize his points. The field of con talk on th is subject th e n answ ered As an “operatin g u n it,” he said th e m any questions from th e floor. In u rg sum er financing is highly com petitive he pointed out, and banks m u st give TVA has proved a “m arvelous suc ing b an k ers to en ter th e consum er cred it field seriously and w hole-heart serious consideration to th e problem cess.” (T u rn to page 26, please) He did not com m ent on th e proposal edly, Mr. B a rre tt stated th a t th e re are T Confer on Postwar Financing O N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19b5 O U R 5 0 th Y E A R 21 A t the A . B. A . Agricultural Commission Meeting in Omaha T op: H o sts a n d h o n o re d g u e sts a t lu n c h eon te n d e re d to th o se a tte n d in g A. B. A. A g ric u ltu ra l C om m ission m e e tin g b y O m aha C le a rin g H ouse A s so c ia tio n . L e f t to r ig h t: H . M. B ushnell, p re s id e n t of th e O m ah a C le a rin g H ouse, a n d p re sid e n t, T he U n ite d S ta te s N a tio n a l B a n k , O m aha; F rank C. R ath je, p re s id e n t, A m e ric an B a n k e rs A s so c ia tio n , a n d p re s id e n t, C hi cago C ity B a n k a n d T ru s t C om pany, C h i c ag o ; R ay R. R idge, vice p re s id e n t, O m aha N a tio n a l B a n k , O m ah a; C. W. B ailey, v ice p re s id e n t, A m e ric a n B a n k e rs A ssoci a tio n , a n d p re s id e n t, F i r s t N a tio n a l B an k , C la rk s v ille , T ennessee. T op C e n te r: L e f t to r ig h t: A. G. Berger, c h a irm a n , a g ric u ltu ra l c o m m itte e, S o u th D a k o ta B a n k e rs A s so c ia tio n , a n d vice p re s id e n t a n d c ash ie r, D eu el C o u n ty N a tio n a l B a n k , C lea r L a k e , S o u th D a k o ta ; Mrs. L ois J. H alvorsen, a c tin g s e c re ta ry , S o u th D a k o ta B a n k e rs A s so c ia tio n , H u ro n ; E. W. Schouw eiler, m em ber, a g ric u ltu ra l c o m m itte e, S o u th D a k o ta B a n k e rs A sso ci a tio n , a n d p re s id e n t a n d c a sh ie r, B a n k of V eb len , V e b le n ; John N . Thomson, v ice p re s id e n t a n d c ash ie r, B a n k of C e n te rv ille , C e n te rv ille , c h a irm a n o f S u b c o m m itte e on A g ric u ltu ra l C re d it o f th e A m e ric a n B a n k ers A s so c ia tio n C o m m ittee on F e d e ra l L e g isla tio n . B o tto m C e n te r: F r o n t row le f t to r ig h t: Carl Sw anson, s e c re ta ry -e le c t o f th e N e b r a s k a B a n k e rs A s so c ia tio n ; V. E. Dolpher, p re s id e n t, N e b ra s k a B a n k e rs A sso c ia tio n a n d p re s id e n t, F i r s t N a tio n a l B a n k , D a v id C ity ; M iss M ary M cBride, vice p re s id e n t C om m ercial B a n k , B lue H ill; E dgar M c B ride, im m e d ia te p a s t p re sid e n t, N e b ra s k a B a n k e rs A s so c ia tio n , m em b er A. B. A. L e g is la tiv e S u b c o m m itte e on A g ric u ltu ra l C re d it, a n d p re sid e n t, C om m ercial B a n k , B lue H ill, N e b ra s k a . R e a r row le f t to r ig h t: W. R. M artin, vice p re s id e n t, T he L iv e S to c k N a tio n a l B a n k o f O m aha, O m a h a; Mrs. E dgar M c B ride; M. C. Townsend, v ice p re sid e n t, F re m o n t N a tio n a l B a n k , F re m o n t, N e b ra sk a . B o tto m : F r o n t row , le f t to r ig h t: N . V. Torgerson, p re s id e n t, F a rm e rs S ta te B a n k , A dam s, M in n e so ta , m em ber, A. B. A. L e g is la tiv e S u b c o m m itte e on A g ric u ltu ra l C re d it; O. M. Alm e, c h a irm a n , M in n e so ta B a n k e rs A sso c ia tio n C o m m ittee on G o v e rn m e n t L e n d in g , e x e c u tiv e v ic e p re sid e n t, A m e ric a n S ta te B a n k , M o o rh e a d ; George A . B eito, p re sid e n t, M in n e so ta B a n k e rs A sso c ia tio n , p re s id e n t, N o rth e rn S ta te B a n k , G onvick. S econd row , le f t to r ig h t: O luf Gandrud, p re s id e n t, S w ift C o u n ty B a n k , B enson, M in n e so ta , m em ber, A. B. A. A g ric u ltu ra l C om m ission; A. W. H oodecheck, c h a irm a n , a g r ic u ltu r a l c o m m itte e, M in n e so ta B a n k e rs A sso c ia tio n , p re s id e n t, S ta te B a n k of W o rth in g to n , W o rth in g to n ; Dr. O. B. Jesness, c h ie f, D iv isio n o f A g ric u ltu ra l E c o nom ics, U n iv e rs ity o f M in n e so ta , S t. P a u l, m em ber, A d v iso ry C ouncil of A. B. A. A g ri c u ltu r a l C om m ission. O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northivestern Banker Decem ber 1945> A re W ar Savings Bonds Subject to Claims Against an Estate? Q . L ee, a retired banker, died in Florida. P reviou s to h is death he had purchased certain U nited States war sa v in gs bonds w hich, by th eir term s, w ere payable on his death to Jordan. F ee’s creditors sou ght to subject the bonds to th eir claim s again st his es tate. Could th ey do so? No. The F lorida Suprem e C ourt so held in a recen t decision, saying th a t th e pow er delegated to th e federal govern m en t to borrow m oney and is sue bonds can not be ham p ered by the laws of any state. A su b stan tially sim ilar ru lin g w as also m ade recen tly by th e A rk an sas Suprem e Court. Q . Gunderson, a M innesota banker, em ployed a real estate agent to sell certain property for him in th at state. W ithou t the k now ledge or con sen t of the b anker the agent sold the prop erty to h im self and, through various transactions, realized a secret profit therefrom in addition to h is com m is sion. N oth in g w as done by Gunderson to ratify the sale and he su b seq u en tly sou gh t to have the property, w hich Avas still in the agen t’s hands, re turned? Can he do so? Yes. An agent in th e salé of real estate m ay not sell to him self w ith o u t the know ledge of th e ow ner w hom he represen ts. The inflexible rule, founded on public policy, is th a t such a tra n s action shall not be p erm itted to stand against th e prin cip al unless it ap pears th at, w ith full know ledge of all th e facts, he eith e r p reviously consented to or subseq u en tly ratified it. M arvel, an I llin o is banker, d ied le a v in g a 160-acre farm as p a rt of h is e sta te . U nder h is Avill 50 a c r e s of th e farm Avent to h is n ep h ew an d th e re m a in in g 110 acres to h is n ie c e . H e did not sp ecify w hich 50 acres sh o u ld g o to th e n ep h ew and no indication w as a v a ila b le th at h e in tend ed any sp e c ia l 50 acres sh o u ld b e a llo c a te d to h im . W as th e d e \ i s e valid? Yes. It has been held, or assum ed, in Illinois, Iowa, T exas and oth er jurisd ictio n s th a t tw o or m ore devises https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Questions Are Answered By the LEGAL DEPARTMENT of acres out of the sam e tra c t of land, or from a te sta to r’s estate, are valid. In a recent Illinois Suprem e C ourt de cision involving facts sim ilar to those o u tlined in the question th e court decreed th a t the tw o devisees should sh are the p ro p erty as te n a n ts in com m on in proportion to the acreage given to each. Q . As an in cid en t to m aking a farm loan in South D akota a banker in th at state found h im self confronted w ith a situ ation in the chain of title Avliere, som e years before, the farm Avas deeded to “John B. P eterso n ” and w as thereafter deeded on into the chain by “John B. P etersen ”. Is there a legal presum ption that the sam e person Avas in volved in both deeds? Yes. It will be presum ed th a t differ e n tly spelled nam es in deeds convey ing in te re st in realty refer to th e sam e person, w hen th ey sound alike, or w h en th e a tten tiv e ear finds difficulty in d istinguishing them , or w hen com m on usage has by co rruption or ab b rev iatio n m ade th e ir pronunciation identical. Q. Q. N orthw estern Banker This and Other Timely Legal Decem ber 1945 A N o r th D akota toAvnship board, o n e o f th e m e m b e r s o f Avhich w a s a lo c a l b a n k er, p u r c h a se d a p ie c e o f lan d u p o n w h ic h Avas lo c a te d a graA el p it in an a d jo in in g to w n sh ip . B e c a u se th e p it AA'as lo c a te d in an a d jo in in g toAvnship th e p u r c h a se Avas, u n d e r th e la w , u ltr a v ir e s or, in o th e r Avords, b e y o n d th e p o w e r s o f th e b oard . T h e tr a n sa c tio n Avas, n e v e r th e le s s , c o m p leted . B la ck , a str a n g e r to th e tr a n s a c tio n and Avho w a n te d th e p it h im se lf, s o u g h t to attack th e b o a rd ’s title o n th e g ro u n d it Avas u ltr a v ires. Could h e do so? No. In N orth D akota a stran g er to a tran sactio n w hereby a tow nship ac quires title to a gravel pit located in an adjoining tow nship can not collat erally attack the title acquired by the tow nship on th e ground th a t its acqui sition w as u ltra vires. This is in line w ith the rule th at, generally, a s tra n ger m ay not attack collaterally a tra n s action by w hich eith er a p rivate cor poration or a public corporation has acquired title to p ro p erty in an ultra vires m anner. Q. G oob ler w e n t b a n k ru p t OAving, a m o n g v a r io u s a m o u n ts to v a rio u s cr e d ito r s, th e su m o f $500 to h is b a n k er. A ll o f G oob er’s d e b ts w ere d u ly sc h e d u le d in th e b a n k r u p tc y p ro ceed in g an d h e Avas d isc h a r g e d th erefro m . A t th e tim e o f th e d isc h a rg e h e Avaived su c h d isc h a r g e a s to b is in d e b te d n e ss to th e b a n k er. S till la te r he Avent b a n k r u p t a g a in . In su c h p ro c e e d in g he so u g h t a d isc h a r g e fro m th e b a n k er’s c la im . S h o u ld it be g ra n ted ? No. A b a n k ru p t cannot obtain a second discharge from a debt th a t he has previously scheduled in a p rior b an k ru p tcy proceeding and th a t w as discharged th erein . It w ould violate th e en tire purpose of th e B ankruptcy Act to g ra n t him relief at a later tim e from th e sam e obligation. Q . G rant e x e c u te d in faA or o f M orrell a v a lid o p tio n c o n tr a c t Avliereby M or r e ll Avas to receiA e title to a h o u se OAvned b y G ran t u p o n th e p a y m e n t o f th e p u rc h a se p rice Avithin s ix ty d a y s. P r io r to th e e x p ir a tio n of th e p eriod and b efo re th e p a y m e n t AAas m ad e by M o rrell, G rant, Avithout c a u se, r e p u d ia ted th e co n tr a c t. M o rrell AA as rea d y , Avilling, a n d a b le to m a k e th e p a y m e n t w ith in th e p erio d . Did G ran t’s r e p u d ia tio n e x c u se h im from d o in g so Avithout p r e ju d ic in g h is r ig h t to co m p e l th e sa le? Yes. T his situ atio n is covered by the general ru le th a t w here th e ex er cise of an option contem plates th e te n der of th e purchase price as a p a rt of its acceptance, the rep u d iatio n of th e co n tract by th e optionor, in th e face of OUR 50th YEAR 23 V Prom pt Ira ns it Service ■ \ ■' ■' * ' - *' ■ ■'- P-A-; - TH F LJ 1 1 1 ■ OMAHA BANK M i m b f ' O U R 50th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F # d 0 r mI D * & e * 11 I« i« r <«r« C»r>ofih'«»i N orthwestern Banker Decem ber 1945 24 to the Banking Profession on many jobs well clone! ROBABLY th e r e ’s n o t a b a n k e r in A m e ric a , d u r P in g th is V ic to ry y ear, w h o has n o t fe lt a little lik e an o ld -tim e ju g g le r. F ro m '’ra tio n b a n k in g ” th ro u g h p a y -ro ll d e d u c tio n s y o u have u n fa ilin g ly k e p t scores of v ita l p u b lic services going a t once. Y ou have h a n d le d all th e se ex tras w ith d e p le te d staffs a n d in e x p e rie n c e d w o rk e rs. H a m m e rm ill h as h a d th e p riv ileg e of sh a rin g th e lo a d — to a slig h t e x te n t, a t le a s t—w ith m a n y o f you. N ow , as th is m o m e n to u s y e ar d raw s to its close, we offer sin ce re c o n g ra tu la tio n s a n d frie n d ly good w ishes fo r th e peace tim e y e ar th a t is co m in g . N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decem ber 1945 OUR 50th YEAR 26 readiness, w illingness, and ab ility to p erfo rm on th e p a rt of th e optionee, excuses te n d e r d u rin g the tim e lim ited, an d en titles th e la tte r to all available rem edies, including specific p erfo rm ance. Illinois, M ichigan, M innesota, M issouri, N ebraska, South Dakota, W isconsin and o th er states follow th is rule. A bout Bankers You Know Q. I t is not u nu sual for tru st officers to h ave before them problem s in v o lv in g w h eth er certain people can recover under sold iers’ in surance policies. The N ational S ervice L ife In surance Act p erm its an in sured to nam e benefici aries on ly as defined in the law . Can a soldier, under th at law , nam e h is girl friend or h is adopted sister as b en eficiary? No. The m a tte r of w h e th e r a sol d ie r’s girl frien d or his adopted sister can be nam ed as a beneficiary in an in su ran ce policy pro cu red by him u n d er th e N ational Service Life In s u r ance A ct h as been before th e federal cou rts in recen t m o n th s and it has been held th a t th e law is n o t broad enough to include them . Q. In th e w ind-up of a d ecedent’s es tate in Iow a the problem arose of w hat should be design ated as h is hom estead. U nd er the la w s of th at state, gen erally speaking, hom esteads m ay not exceed forty acres excep t that, if th ey are w ith in a city or tow n plat, th ey cannot exceed one-half acre. The property in q uestion con sisted of tw o acres in D es M oines but not w ith in any of the platted areas thereof. The sole prob lem w as w heth er, under the law , it should be lim ited to one-half acre. Should it be so lim ited? No. B efore a hom estead can be lim ited in Iow a to one-half acre, it m u st be show n, not only th a t it is w ith in a city or tow n, b u t also w ith in a city or tow n plat. Since th e tw o acres of th e decedent h ad nev er been p latted th e one-half acre lim itatio n u n d e r th e sta tu te w as not applicable to it and th e en tire tra c t w as hom estead. Q. W hite, a N e b r a sk a banker, oper ated a g r a in e le v a to r in that state. One of h is grain e le v a to r em p loyees, w h ile d r iv in g an a u to m o b ile belonging to W hite, n eglig en tly ra n in to and in jured a pedestrian. A d a m a g e su it w as filed against W hite a n d the driver. A t the trial th e b a n k e r and driver te sti fied th a t the d r iv e r w as not a c tin g Avithin th e scope of h is e m p lo y m e n t or in the furtherance of the b ank er’s (T u rn to n e x t page, please) O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EDW IN F. BUCKLEY IF T Y years ago this m onth E dw in F. B uckley, now presid en t of the Central N ation al Bank & T rust C om pan y of Des Moines, was born in Iow a’s C apital C ity— nineteen years later, in M arch, 1914, he started his banking career as a m essenger w ith the old G erm an Savings Bank, in Des M oines, and w ith the exception of a few years in Chicago w ith the R econstruction Finance C orpora tion, has been always associated w ith Des M oines banking interests. Ylr. B u ckley has h eld positions w ith the Des M oines N ational Bank, the lowaDes M oines N ational Bank, cam e w ith the Central N ational in 1935, and was elected presid en t of th at in stitu tion in 1941. F Serving in the first w o rld w ar w ith the 34th division, Ylr. B u ckley has two sons in the service in the recent w orld conflict, and also has a daughter. He is pa st p resid en t of the Des M oines R o ta ry Club and the Des M oines Club; treasurer of the Des Yloines C ham ber of C om m erce; a director of W akonda C lub; m em ber of the R eserve C ity Bankers; m em ber of St. A ugustin’s church; and is active in m any local civic enterprises. E dw in F. B uckley, or “B uck,” as he is known to his m any friends, is highly regarded and respected b y the banking w orld for his sound know ledge of the business and his m ature ju dgm en t d isp la yed in its adm inistration. E n tirely lacking in all “front-office” affectations, he enjoys the frien dsh ip, confidence, respect and lo ya lty of his C entral N ational F am ily. H is sincere consideration and seasoned counsel are alw ays available to all of his co-workers. W hile a b etter than average golfer, M r. B u ckley takes a keen interest in all sports, w ith football, baseball, and basketball his specialties. He is recognized (T u rn to n ex t page, please) N orthwestern Banker December 1945 26 P O STW A R F IN A N C IN G (C ontinued from page 20) of com peting w ith th e natio n al finance com panies Which have been doing a good job of covering th is field and to local finance com panies. In pre-w ar y ears finance com panies gave as m uch as 60 m onths w ith p ractically no dowfi paym en t and it w as urged th a t banks oppose th e re tu rn of th is plan. Once a b ank decides to e n te r this field, th ey m u st devise a suitable sys tem for h an d lin g collections, d elin quencies and repossessions, Mr. B ar re tt said. He gave several exam ples of how each of these steps have been and can be accom plished. P robably the m ain fields of con su m er financing in th e n ear fu tu re will be autom obile and appliances. The m ajority of the afternoon dis cussion w as tak en up w ith an explana tion of the procedure for obtaining a G.I. loan and a forum discussion of the problem s involved. R aym ond Reece, a ssista n t vice president, Commerce T ru st Com pany w ent over the paper process involved step by step. Ray Ram sey, a ssistan t cashier, gave several n riin nu ni or scoTUNBjouinj^s ★ H IS T O R IC A L N O TE This oak strong box had huge iron handles and an immense padlock. The Crown Jew els of Scotland w ere first placed in it in 1 7 0 7 . In 1 81 8, the key having been lost, the Royal Commissioners ordered the strong box forced open so they could exam ine the jewels. exam ples of farm and business loans tak en from th e ir records and those of o th er banks. A. B. E isenhow er, vice president, said th a t in th e near fu tu re financing sm all business m ay be the m ain financ ing tran sactio n of banks. He gave a sh o rt talk on th e several w ays of aid ing sm all businesses. Gerald P ark er, vice president, ad dressed th e m orning session on the subject of “G overnm ent Bonds and In vestm en t Policies.” All those atten d in g the m eeting w ere guests of th e Commerce T ru st Com pany a t a luncheon in th e Green Room of th e H otel C ontinental. A social h o u r followed by d in n er at the M uehlebach hotel w ith F ra n k C. R athje, p resid en t A m erican B ankers A ssociation as guest speaker, ended th e program . L E G A L Q U EST IO N S (C ontinued from page 25) affairs w h ile drivin g the ear at the tim e of the accident. W as it necessary for the plaintiff to sh ow th at such was not the case to recover from the bank er? Yes. The presum ption th a t an em ployee, driving his m a ste r’s autom o bile w hen an accident occurs, is acting w ith in th e scope of his em ploym ent disappears w hen th e evidence shows th a t such em ployee w as engaged on his own personal affairs, and th e plain tiff, to recover from th e m aster, m ust th en show by evidence th a t the act of driving th e autom obile w as w ithin th e scope of th e em ploym ent. CONTRAST IT m W THIS H-H-M POST-WAR BEAUTY MORE THAN A CENTURY OF LEADERSHIP IN THE MANUFACTURE OF PROTECTIVE DEVICES FOR INDUSTRY, COMMERCE, AND THE HOME. T w o hu nd red y e a r s a g o , the re in fo rce d o a k strong b o x w a s re co g n ize d a s the u ltim ate in protection for reco rd s and v a lu a b le s . T o d a y , th a n k s to m ore than a century of s c ie n tific d e v e lo p m e n t, a s e x e m p lifie d in H e rrin g -H all-M a rv in d esign a n d co n stru ctio n , the b a n ke r — a n d b u sin e ss m an — m ay c lo se h is d e sk co n ten ted ly, k n o w in g that his p rice le ss reco rd s a n d other v a lu a b le s are s a f e ly stored beh ind steelsh e a th e d w a lls — im m u n e a g a in s t fire an d im p re g n a b le a g a in s t theft. fp> IN P R EP A R A T IO N : “ Progress in P r o te c tio n ." An illustrated history of d evices men have used to protect their va lu a b le s from the cave man era to the present. Lim ited ed itio n . For arch itects, bankers, execu tives. Please re serve (by letter) your copy now. G r a tis. H E R R I N G - H A L L - M A R V I N S A F E CO. G e n e r a l O f f i c e s : H a mi l t o n , Oh i o BRANCH OFFICES in N ew York, Chicago, Boston, W ashington, St. Louis, Atlanta, Houston Philadelphia, Los Angeles . . . Other Agencies All Over the World MANUFACTURERS O F BANK VAULT E Q U IP M EN T-BA N K CO U N TERS-TELLER S’ BUSES AND LOCKERS SAFE DEPOSIT BOXES - NIGHT DEPO SITORIES - BANK AND O FFICE SAFES BUILDERS OF THE UNITED STATES SILVER STORAGE VAULTS—WEST POINT MILITARY RESERVATION N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decem ber 19^5 BAN KERS Y O U K N O W (C ontinued from page 25) as the keenest and m ost capable field general at the sessions of the M onday m orning quarterback club, and he never misses the several state basket ball tournam ents h eld in Des Moines. H igh ly regarded as a bank execu tive— respected b y his fello w w orkers h eld in fon d affection b y his friends — that, briefly, sums up th e in terest ing and capable perso n a lity th at is E d B uckley. A Doubting Thomas “I knew an a rtis t w ho p ain ted a cob web so realistically th a t th e m aid spent several hours try in g to get it down from th e ceiling.” “I can ’t believe it.” “W hy not? A rtists have been know n to do such th in g s.” “Yes, b u t not m aids.” OUR 50th YEAR 27 Collection of Coupons and Bonds M illions o f coupons and bonds are received by ns for collection each year. W hile this service is gear ed to any volum e, it is also fitted to the handling of individual items that require special attention. C orrespondent Banks can rely u p o n us for p ro m p t and dependable service in presenting m atured coupons and bonds for paym ent. BANKERS TRUST COMPANY NEW MEMBER FEDERAL DEPOSI T YORK INSURANCE CORPORATI ON A Partial List of Bankers Trust Company Services to Banks C o lle c tio n o f P ar a n d N o n -P a r C hecks C o lle c tio n o f N o te s , D ra fts, C o u p o n s, M a tu re d B o n d s a n d O th e r Ite m s (D o m e stic and F o re ig n ) T ran sfe r o f F u n d s , R e m itta n c e s a n d D o m e s tic M o n e y O rd e rs S ervicing L o an s to B ro k ers a n d D ealers C o m m e rc ia l a n d T ravelers L etters o f C re d it P a rtic ip a tio n w ith C o rre sp o n d e n t B a n k s in L o an s to L ocal E n te rp rises S a fe k ee p in g o f Securities D e ale rs in U n ite d S tates G o v e rn m e n t, S ta te a n d M u n ic ip a l Securities C o n s u lta tio n o n P e n sio n a n d P ro fit-S h a rin g P lans C o -P a y in g o r E x c h a n g e A g e n t, C o -T ran sfe r A g e n t o r R e g istra r, a n d C o -D e p o sita ry I n v e s tm e n t In fo rm a tio n C re d it In fo rm a tio n C o m m e rc ia l P a p e r P u rc h a ses T ru s t a n d R e se rv e A c c o u n ts R e c e ip t a n d D e liv e ry o f Securities In te rn a tio n a l T ra d e a n d F o re ig n B a n k in g F acilities ) OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker D ecem ber 19^5 28 shot down in F eb ru ary , 1945, and spent th ree w eeks behind enem y lines in Yugoslavia u n til th ey m anaged t© es cape and re tu rn to Italy. Mr. H aller is m arried and has a six m onths old baby boy. June Convention The A m erican In stitu te of B anking will resum e th e holding of its conven tions w ith its fo rty -th ird an n u al m eet ing scheduled to be held at C incinnati, Ohio, Ju n e 11-14, 1946, it is announced by D avid T. Scott, natio n al p resid en t of th e In stitu te , w ho is also assista n t cashier of th e F irs t N ational B ank of Boston, Boston, M assachusetts. H ow ever, due to an ticip ated tra n s p o rtatio n difficulties, crow ded hotel conditions, and th e continuing m an pow er problem s of th e banks, th e 1946 convention w ill be a stream lin ed affair lim ited to a program of th re e and onehalf days, Mr. Scott states. It w ill open on th e aftern o o n of Ju n e 11 and close Ju n e 14. Ben Haller, Jr., Joins De Puy Publications Ben H aller, Jr., has been appointed associate editor of th e D ePuy P ublica tions, including th e N o r t h w e s t e r n B a n k e r , U nderw riters R e v ie w and the Iow a-N ebraska B a n k D irectory, all of Des Moines. Mr. H aller g rad u ated from C reigh ton U niversity, Omaha, in Ju n e 1942 Promotions The C ontinental B ank and T ru st Com pany of New York announces the advancem ent of F erd in an d M. Bessell from a ssistan t vice presid en t to vice presid en t and the ap p ointm ent of Dominic Suplina as a ssistan t secretary. B E N JA M IN J. Heads Moline Bank H A L L E R , JR . w ith the degree of Bachelor of P h il osophy in Journalism . Before en terin g the service, he w orked for the Om aha W orld-Herald and th e U nited Press. He enlisted in th e arm y air corps as an aviation cadet and after finishing his train in g he becam e a bom bardier and w as com m issioned a second lieu ten an t. He spent 32 m onths in the arm y, d uring th e last period of w hich he flew 19 com bat m issions over Italy and w as aw arded th e A ir Medal w ith Oak L eaf C luster. H is crew w as George D. Thom pson, w ho has been in charge of th e D avenport, Iowa, L iquidation C orporation for 13 years, has been elected p resid en t of th e Mo line S tate T ru st and Savings Bank, Moline, Illinois, to succeed th e late Jo seph E. Shearer. Thom pson w as born a t W alnut, Iowa, and w as reared in Des Moines, Iowa, w here he en tered th e em ploy of the Iowa-Des Moines N ational B ank at the age of 19 and w orked his w ay up to cashier. He left Des Moines in 1929 to becom e cashier of th e Cham paign, Illinois, N ational Bank. O ur W arehouse Receipts Provide the Soundest Basis for All Inventory Loans C o n s u lta tio n se rv ic e is fr e e to b a n k s . A d d r e s s in q u ir ie s to o u r n e a r e s t o ffic e . ST. PAUL TERMINAL WAREHOUSE CO. Experienced and Responsible Operators of Field Warehouses 515 Io w a D es M o in e s N a t ’1 B a n k B ld g ., D es M o in e s , Io w a St. Paul Minneapolis Milwaukee Chicago Indianapolis Detroit Mr, Banker: 36 Do you know th at EVERY MONTH f i l l MORE BANKS becom e su b scrib ers to D. A . S. A G R I C U L T U R A L D IG E S T T h ere is n o o th er agricultural in fo r m a tio n service ju st lik e it. F or sam p le releases and fu rth er in fo rm a tio n w rite to Doane Agricultural Service, Inc. Box 603, 206 Plym outh Bldg. You Should H ave It! N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber 19b5 D es M oines 9 , Iowa H o m e O ffice— S t . L o u i s OUR 50th YEAR 29 YOUR COMMODITY DRAFTS to theIRVING. . . y /' T h ey are h an d led by a u n it spe cializing in an operation w hich m ight easily becom e routine. Shipm ents are traced . . . drafts p re sented p rom ptly . . . paym ent or definite reason for non-paym ent quickly secured. Y our drafts are han d led by an ex pert w ho keeps in close touch w ith their collection and, w hen necessary, facili tates delivery of the goods. For resourceful service, send us your com m odity drafts collectible in the East and call on us for assistance w ith any collection problem . I r v in g T r u s t C o m p a n y ONE WALL STREET • NEW YORK 15, N. Y. M em ber F ederal D eposit Insurance C orporation OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthwestern Banker December Í945 30 Add to Staff The in sta llm e n t loan and finance de p artm e n t of N o rth w estern N ational B ank of M inneapolis has expanded its business developm ent division by add ing to its staff George M. M unson and Reginald L. T hom pson, according to anno u n cem en t by J. F. R ingland, p resi den t of th e bank. M unson g rad u ated from th e U ni v ersity of M innesota in 1932 and re p resen ted th e Todd C om pany p rio r to joining th e N o rth w estern N ational Bank as p u rch asin g ag en t on A pril 1, 1941. Thom pson, a fte r com pleting a b u si ness course at th e Jam estow n College, Jam estow n, N orth Dakota, w as asso ciated w ith th e F irs t N ational B ank of W alhalla, N orth Dakota, th e Chevrolet M otor Com pany of F argo and th e F a r go office of the S tandard Oil Company. F o r th ree y ears im m ediately p rio r to th e w ar, he w as associated w ith th e Billings, M ontana, office of the U ni versal Credit Com pany and w as en gaged in field and credit w ork. Cut Non-Member List As a resu lt of intensive efforts by m em bers of th e O rganization Com m it tee of th e A m erican B ankers Associa tion in the last fiscal year, only 575 banks rem ained non-m em bers of the A ssociation from am ong th e m ore th a n 15,000 banks in the U nited States. The com m ittee’s ten tativ e goal for 19451946 is to cut th e presen t non-m em ber list in half, according to R. L. Domi nick, ch airm an of the com m ittee, who is also president, T rad ers Gate City N ational Bank, K ansas City, M issouri. Mr. D om inick rep o rts th a t a good s ta rt has already been m ade since the opening of th e new A ssociation year on S eptem ber 1, 1945, w ith 51 new m em ber banks on A.B.A. rolls. The g reatest gain in th e n u m ber of banks has been m ade in N ebraska, and in A labam a six of tw elve non-m em bers joined th e A ssociation in October. Federal Reserve, Chicago T he ap p o in tm en t of Charles B. D unn as first vice presid en t of th e Federal R eserve B ank of Chicago and P aul C. Hodge as general counsel w as an nounced by th e board of directors of th e bank. Mr. D unn has been general counsel of th e b an k for th e p ast tw elve y ears and also vice presid en t since M arch 1942. P rio r to th at, he w as as sistan t to th e b a n k ’s counsel for five years. Mr. Hodge has been a ssistan t gen eral counsel and assistan t secretary of th e bank. He joined th e legal d ep art m ent of th e ban k in 1934. He w as grad u ated from D rake U niversity in 1926 and received his law degree from th e U n iversity of Chicago in 1928 at w hich tim e he w as adm itted to the b ar in Illinois. He w as associated w ith the law firm of Taylor, M iller, Busch, and Boyden from 1928 u n til he cam e to th e F ed eral R eserve B ank of Chicago. He is a m em ber of th e A m erican B ar As sociation and Illinois state bar. Trust Conference W ith in a few h o u rs afte r they are sold a D rovers “Y ellow B oy” advice w ill be speeding on its way. T he “Y ellow B oy” is w idely recognized as a sym bol of fast, efficient service to b ankers whose custom ers ship livestock to th e Chicago m arket. Your Chicago Account Is Invited DROVERS NATIONAL BANK DROVERS TRUST 0 SAVINGS BANK U N I O N S T O C K Y A R D S , C H I C A G O M em ber F ederal D e p o sit Insurance C orporation N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ecem ber Í9b5 The an n u al M id-W inter T ru st Con ference of th e A m erican B ankers As sociation is to be resum ed nex t w inter, according to Jam es W. Allison, p resi den t of th e A.B.A. T ru st Division, w ho announced th a t th e tw enty-seventh m id-w inter conference w ill be held in N ew Y ork a t th e W aldorf-A storia, F eb ru a ry 4-6, 1946. Mr. Allison is vice president, E q u itab le T ru st Company, W ilm ington, Delaw are. T he confer ence, w hich is alw ays held in F e b ru ary, w as om itted last y e a r because of th e w artim e railro ad and hotel conges tion and th e b an of th e Office of De fense T ran sp o rtatio n on m eetings of m ore th an 50 people. H om e R u n Queen He calls his g irl friend “B aseball” because she w on’t play w ith o u t a diam ond. OUR 50th YEAR J 31 CONTINENTAL I L L I N O I S N a t io n a l B an k 'm u s t PA N Y >F V II M 'A G I C O M M E R C I A f, B A N J f O N G ’O i P O K A T E A N D P E R S O N A E T R U S T S E R V I C E S F O R E IG N B A N K IN G F A C IL IT IE S U N IT E © STATES G O V E R N M E N T A N © M U N I C I P A L S E C U R IT I E S S A V I N G S © E I3A R T M E N T M E M B E R F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T IO N OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthwestern Banker Decem ber 19^5 32 IN P L A IN S IG H T ... One of the best loan collaterals is often overlooked as a source o f work ing capital. It’s alm ost too o b v io u s! But business m en are learning, through Lawrence W arehouse Company’s national advertising, that readily marketable inventory is actually c r e d it. . ." hidden ” in plain sig h t! H ere are the steps that Lawrence takes to direct in ventory loan business to banks and lending a g en cies: 1. Advertises to those industries that represent your biggest potential m arket for inventory loans. 2. Explains, by exam ples, the benefits that result from the Lawrence System o f field w arehousing inventories right on the prem ises. Points out that I NVENTORY Lawrence W arehouse receipts are readily accepted for inventory loans to m eet sound requirem ents. 3. Offers —either direct or through you —a new, ex planatory booklet, ’’F ield W arehousing On Your Prem ises.” We w ill gladly send you a supply for distribution. 4. For your own loan officers, Lawrence has pro vided a free and fu lly detailed book, "Inventory Financing.” Lawrence has had 30 years’ experience in field ware housing almost every type of marketable inventory. Phone or write our nearest branch office and make use o f this "know -how .” LAW RENCE W A R E H O U S E C O M PA N Y T W arehousing N EW Y O R K : 72 W all Street W . P. Story Building * Florida Houston • Dallas • • Buffalo Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • C H IC A G O : 1 North LaSalle Street • Boston Denver • • Philadelphia • • fo r BANK ON SA N F R A N C IS C O : 37 Drumm Street Kansas City, Missouri • St. Louis • Fresno • Stockton • Portland, O regon • Atlanta Decem ber Í9h5 LOANS • INVENTORY • LO S A N G E L E S : New O rlean s • Jacksonville, Cincinnati • W ashington, D. C . OUR 50th YEAR Cheap M oney W ill Continue The Low Interest Rate Plan Is Working Well and the Machinery Is Apparently Well Oiled CONCERTED offensive of th e cheap m oney forces seem s to hav e been tu rn e d loose ag ain st th e bogey of d isq u iet re g a rd in g th e fu tu re of in te re st rates, created by such criticism as th a t of B enjam in A nderson or P re sid e n t P a rk in so n of th e E q u itab le Life. T h ere seem s to be fear th a t th e h isto ry of th e g o v ern m en t m a rk e t in th e w ake of W orld W ar I be forgotten. The first voicing of a com m itm ent to th e policy of easy m oney w as in Secre ta ry V inson’s L abor Day speech in Peoria. W e have since h eard th a t th e S ecretary has asked th e F ed eral R e serve to delay a n y action in th e direc tio n of in creasin g th e special red is count ra te on 1-year G overnm ents, or elim in atin g it entirely. A nd from R ep resen tativ e F re d L. C raw ford of M ichigan, th ird ra n k in g m em ber of th e H ouse B anking and C urrency Com m ittee, and a b an k d irecto r him self, th e re has been th e w a rn in g th a t any m ove to increase in te re st ra te s on th e F ed eral deb t w ould be ap t to foster a tta c k and proposals for rep ressiv e m easu res from such as th e Patm anV oorhees school. H ighly placed p ro p o n en ts of a h ig h er in te re st ra te have eith e r becom e in a rtic u la te like Eccles or are on th e ir w ay out like Dr. G oldenw eiser. As a p a rtin g shot, th e article by Dr. Golden w eiser in th e N ovem ber F ed eral R e serve B ulletin is in te re stin g even if ineffectual. He states th a t “long term in te re st ra te s should be p e rm itte d to rise su b sta n tia lly ” w hile th e sh o rt te rm ra te m ay w ell fluctuate in re sponse to changing conditions . . . “th a t th e abn o rm al sp read b etw een th e long and sh o rt te rm ra te s m ay have had its origin in th e v a st gold inflow and th e lack of active dem and for cred it in th e d epression . . . T he fact th a t th e spread w as la te r crystallized into a p a tte rn of ra te s d u rin g th e period of w ar financing does not m ean th a t it w ill p ersist a fte r th e w a r.” A H ow ever it be, th e low in te re st ra te plan is w o rk ing w ell and th e m ach in ery is a p p a re n tly w ell oiled. T he first big step in jack in g up th e bond price s tru c tu re w as b egun ab o u t a y e a r ago w ith th e w h isp erin g s th a t th e re would OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By Raymond Trigger Investment Analyst New York C it y This is a discussion of fac tors affecting your invest ment portfolio. If you have any questions, or if you find yourself in disagree ment with comments here in, your letters, addressed to the NORTHW ESTERN B A N K E R , will be w e l come and will be answered here if the subject matter is of general interest. Under no circumstances will the editor of this column dis cuss specific securities. be no m ore 2’s after th e Sixth W ar Loan and this m aterialized into fact, b u t in th e m eantim e th e effect of th e b u ying on slau g h t against th e o u t standing 2’s w as to pu sh th em up to levels th a t fully justified th e om is sion of a 2% issue in th e Seventh Loan and instead, th e offering of a 5% year 1V2% bond. E ven th is w as om itted from th e c u rre n t V ictory L oan bask et and th e banks had no th in g to look fo rw ard to—except for restricted sub scriptions—b u t certificates and sh o rt notes. A nd now th e w h isp erin g is th a t th e certificate ra te w ill be cu t to %%, or even to V2%. Reduction in Certificate Rates? F irs t B oston’s Vice P resid en t A u b rey L anston tak es th e stand th a t since it is a p p aren tly to be T reasu ry policy to use C ertificates for re fu n d ing purposes, th e only w ay th a t th ere can be any direct p arin g of th e in te re st cost w ill be by red u cin g th e certificate rate. F u rth erm o re, he con tinues, a program to reduce th e over all in te re st cost is alm ost a political necessity. A statistical case can be m ade for a reduction in th e certificate rate. As w e all know, th e sh o rt te rm ra te has actually increased over th a t of the original (1942) p a tte rn w hile longer term rates have eased. The re su lt is th a t the sh o rt te rm ra te m ay be said to be out of line. W hile th e question of easing of the sh o rt rate has n o t passed beyond the ru m o r stage—a t least on th e surface and as far as actual resu lts are con cerned, some significance has been sug gested in the p u rchase of notes and certificates by th e F ed eral R eserve B anks beyond actual needs for stabil ization th ro u g h th e creation of F ederal R eserve Credit. F o r instance in the Oct. 17-Nov. 14 period, R eserve B ank holdings of G overnm ent increased $95 m illion on balance b u t th e n et increase in notes and certificates w as $100 m il lion. M eanw hile total R eserve B ank C redit declined $30 m illion and Re serve balances gained $153 m illion despite th e n et gain of $216 m illion for circulation. High Grade Corporates Continue to Look Attractive B ank in v estm en t policy geared to th is a p p aren t outlook and tre n d in dicates an objective of cautiously ro ll ing out of a fair p roportion of sh o rt term issues into a 5-year b rack et and longer. T he qualification of caution is suggested not only from th e stan d p o in t of b an king req u irem en ts, p artic u larly in localities w here deposits are ru n n in g off, b u t also because of th e rise th a t has tak en place in issues of th e 5-year group and beyond, b ringing these to new peak prices. To th e e x ten t th a t funds can be rolled out into th e long te rm bracket, high grade corporates are tak in g on an increasing degree of d esirability as th e in v estm en t m edium . D uring the p ast m onth, or from October 15 to No vem ber 15, w hile th e yield on th e u n restric te d T reasu ry 2%s dropped from 2.18% to 2.10%, th e com posite average yield for hig h est grade corporates v ir tu ally stood still and actually in creased slightly in th e case of top grade utilities. Yields for th e nex t Northwestern Banker December 19^5 34 low er (2A group) in th e sam e period increased in all th re e in d u stry cate gories, and th e position of long cor porates relativ e to th e long T reasu ry s is now th e best in m onths. Most a ttra c tiv e am ong th e corpo rates on th e basis of relativ e yield are tw o top grade issues, T erm inal R. R. A ssociation of St. Louis 2%s of 1975 yielding 2.75% and D ayton P ow er & L ight 23A s of 1975 yielding 2.67%. The la tte r issue is still “in sy n d icate” at th e p re se n t w riting, b u t the u p w ard tre n d of th e m a rk e t should com pensate for any sm all in itial overpricing. N o rth e rn States Pow er 2%s are also still “in sy n d icate” a t 101 to yield 2.70%, m ore because th e re w as not sufficient concession in th e yield to com pensate for th e job of placing a $75 m illion dollar issue th a n th a t the yield is not a ttractiv e by itself. New Y ork C onnecting R. R. 2%s are also on th e long list a t a fraction over p a r w hile am ong th e low er grade rail liens th e m ost a ttractiv e appear to be S outhern Pacific 3%s, N o rth ern Pacific Collateral 4%s of 1975 and Pere M arquette F irs t 3%s. The la tte r on a 3.27% basis attractiv ely situ ated rela tive to sim ilar 3B rail issues and th ere is consequently no overcharge for the chance th a t it m ay in tim e become an assum ed obligation of th e C hesapeake & Ohio. This issue is callable at 104%. Curtail Instalment Credit D angers of a p o stw ar “boom and b u st” w ill be m uch increased if in stal m ent credit is opened up to excessive expansion, w arn s a rep o rt from the fam ily econom ics b u reau of N o rth w estern N ational Life Insu ran ce Company. W ith an enorm ous backed-up de m and for goods and services, and over 100 billion dollars in consum er cash savings overhanging th e m arket, the additional stim ulus of over-liberal in stalm en t credits can be v ery danger ous, th e re p o rt says, adding th a t ex cesses of consum er credit have puffed up previous booms, w hile th e payoff load upon th e consum er in th e ensuing declines has increased th e severity of such depressions. T otal consum er credit reached a rec ord height of 9% billion dollars in the fall of 1941, of w hich approxim ately 6 billions w as in stalm en t credit. W ar tim e credit regulations and th e prac tical disappearance of new autom o biles, refrig erato rs, and o th er goods largely purchased on instalm ents, re duced to tal consum er credit by nearly one-half and in stalm en t debt by over tw o-thirds by th e end of 1943. Both totals have since show n some increase, although w artim e credit regulations are still in force. Should such re stric tions be rem oved, business itself should v o lu n tarily enforce equal or m ore severe restrictions, th e re p srt counsels; otherw ise th e stage w ill be set for an inflation of consum er credit far beyond its form er peak of nearly 10 billions, to a probable total of 15 billions or m ore w ith in th e nex t few years. W hen th is point is reached, the re p o rt w arns, look out for trouble. Commercial Bank Promotions Effective D ecem ber 1st, th e Com m ercial N ational B ank and T ru st Com pany of N ew Y ork announces these changes: W alter G. K im ball, president since Ja n u a ry , 1939, w as elected chairm an of th e board, and continues as chief executive officer of th e bank. Jo h n M. B udinger, senior vice p res ident since Jan u ary , 1944, w as elected president. W illiam T. Taylor, w ho w as form erly presid en t of th e U nion T ru st Com pany of Springfield, M assachusetts, and m ore recen tly vice president of th e G u aran ty T ru st Com pany of New York, w as elected a d irector and vice chairm an of th e board. Jo h n J. M artin, George S. Mills and B radford N orm an, Jr., vice presidents, have been designated general vice presidents of th e bank. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 O U R 5 0 th Y E A R 35 GOOD N E IG H B O R S ty a a d T he great buying pow er o f Latin America, repre sented by a vast accum ulation o f available dollar exchange, is en gagin g the attention o f American exporters as the U nited States again prepares to send g o o d s in volum e to her neighbor republics. As our exports grow , the farmer in Chile w ill eventually get his new tractor; the Brazilian in dustrialist, new factory equipment; and our new household appliances w ill put a tw inkle in the eyes o f many a C olom bian housew ife. Our “good n eigh b ors” are also “g o o d custom ers.” T he Chase Foreign Departm ent can be of in valuable assistance to American exporters and ( ? u 4 t< M ARE te n £ im porters. For the Chase Foreign Department has lon g m aintained close relationships with corre spondent banks throughout Latin America, chosen for their efficiency in transacting foreign business as w ell as their intimate know led ge and under standing o f local business conditions. T hrough these correspondents, the Chase is able to offer aid, in the form o f accurate inform ation and com plete facilities, to the Am erican business men w ho w ill share in the com in g great volume o f trade. T hese Chase facilities w hich are always at the d isp osal o f our dom estic correspondent banks provide a valuable service for their ow n custom ers. THE CHASE NATIONAL BANK OF THE CITY OF N E W Y O RK H EAD O F F IC E : P in e S tre e t c o r n e r o f N a ssa u LO N D O N — 6 Lombard Street H avana • San Juan • Panama • Colon • 51 Berkeley Square • Cristobal • Balboa • Bush House, Aldwych • O ffice of Representative: Mexico City M e m b e r F e d e r a l D e p o s it In su ra n c e C o r p o r a tio n OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker November 19^5 36 Assistant Cashier NOW IS T H E T IM E TO F IN A N C E i J j • J ! 5 J i • ' ; | C onditions to d a y for c o rp o rate financing are ex trem ely favorable. N o t in years have m on ey rates been so low or t h e p u b li c so i n t e r e s t e d . N ew issues a p p e a r on th e m a r k e t alm o st d aily and are absorbed rap idly . D u ring th e y e a r end ing Sep te m b e r 30, 1945, A m erican corporations issued alm ost a bdlion dollars o f securi ties— $985,478,952, accord ing to th e C om m ercial an d f in a n c i a l C h r o n ic l e — for new capital. T h is is n early 5 0% higher t h a n th e to ta l for th e sam e period in 1944. O bviously no corpo ratio n executive responsible for f i n a n c i n g will ig n o r e t h i s situation. E v e r since 1888, this firm has been active in u n derw riting and d is trib u tin g sound capital issues. T h e list o f firms whose original u nd erw ritin g was done by H o rn blow er & W eeks is long and diversified, including a ir c ra ft, e le c tric a l e q u i p m en t, d ru g an d chemical, a u to m o b ile , h e a v y steel p ro d u c ts , m a c h in e tool, packaging, railroad, textile, u tility , household a p p li ances, p e tro le u m e q u ip m e n t and retail stores. C are and experience are e s s e n tia l in t h e d e v e l o p m en t of financing plans, and the services o f a tra in e d , sm oothly w orking in v es t m e n t house are equ ally im p o rta n t. A H o rn b lo w er & Weeks P a r t n e r can help you to deal efficiently w ith y o u r financing an d will be glad to discuss y o u r s i tu a tion w ith y ou in confidence an d w ith o u t obligation. HORNBLOW ER & W EEKS E. C hester G ersten, presid en t of the Public N ational B ank and T ru st Com p any of New York, announced th a t L ie u te n an t A lton J. Burge, recently re tu rn e d from th e navy, has been ap pointed a ssistan t cashier at the m ain office. Returns to Bank L ieu ten an t Colonel Charles G. Gambrell has re tu rn e d to th e official staff of Irv in g T ru st Com pany after serving in the arm y of the U nited States since July, 1942. Colonel G am brell w ill be associated w ith th e com pany’s busi ness in th e m iddle w estern states. Directors Re-elected B alloting for the election of a Class “A ” and a Class “B” director of the F ederal R eserve B ank of Chicago re sulted in th e re-election of W alter J. C um m ings and W illiam Clarkson H eath to serve for th ree y ears begin ning J a n u a ry 1, 1946. Both m en w ere unopposed. Mr. Cummings, chairm an of the board of the C ontinental Illinois N a tional B ank and T ru st Com pany of Chicago, has been a director of the F ederal R eserve B ank of Chicago since 1937. Mr. H eath, p resid en t of the A. O. Sm ith Corporation, M ilwaukee, is a Class “B” director. He has been a di recto r of the F ederal R eserve B ank of Chicago since 1943. Again Vice President M ajor J. C arroll W alker has re tu rn ed , a fter m ore th an th ree years in the arm ed forces, to his form er position as vice p resid en t of the Mer cantile-Com m erce B ank and T ru st Company, St. Louis. Mr. W alker has now resum ed his old duties w ith th e C orrespondent B ank Division of M ercantile-Com m erce and will rep resen t th e b an k in his form er te rrito ry of th e so u th ern and south eastern states. Year-End Dividend D irectors of Inv esto rs Selective F und, Inc., an open-end investm ent com pany, have announced a fiscal year-end dividend d istrib u tio n of 20 cents a share, payable N ovem ber 26, 1945, to sh areholders of record Novem ber 16, according to R. E. MacGregor, president. A pproxim ately nine and one-half cents (9%c) a share w as derived from in terest incom e and eleven and onehalf cents (llV sc) a share represented profits from th e sale of securities. In vestors Syndicate, M inneapolis, is the principal u n d e rw rite r and investm ent m anager of th e fund. General Counsel A nnouncem ent w as m ade in W ash ington of the ap p ointm ent of Colonel M urray H anson of Cleveland, Ohio, as general counsel of the Investm ent B ankers Association of Am erica upon his relief from active d uty in the arm y. T his announcem ent w as m ade by John Clifford Folger, presid en t of th e IBA, and senior p a rtn e r of the investm ent firm of Folger, Nolan, Incorporated, W ashington, D. C. Specializing in Unlisted Securities BANK — INSURANCE PUBLIC UTILITY — INDUSTRIAL — REAL ESTATE LUMBER & TIMBER BONDS, PREFERRED AND COMMON STOCKS BOUGHT — SOL D — QUOTE D 40 W all S tre e t N ew Y o rk 5, N . Y . | Sin ce 1888 — F in a n c ia l Service A dapted to Y o u r Requirem ents J 5 | J N e w Y o rk ; B o s to n ; C h ic ag o ; C le v ela n d ; P h ila d e lp h ia ; D e tr o it; P o r tla n d , M e .; P ro v id e n c e ; B a ltim o re ; B a n g o r. R E M E R , M I T C H E L L & R E I T Z E L , INC. 208 S o. La S a lle S t ., C h ic a g o 4 R A N d o lp h 3736 O ffices: Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 W E S T E R N U N IO N T E L E P R IN T E R “ W UX” B E L L SYSTEM T E L E T Y P E CG-989 O UR 3 0 th YEAR 37 OF B U S I N E S S 0 California-minded businessmen seek a clear forecast of the western economic picture, now that the war is over. Significant in th is th in k in g is the fabled California Gold Rush ... and the epocal events which followed. A tremen dous influx of businessmen, adventur ers, and plain John Does came west in 1849. Not all of them remained, but many did. This picture was repeated in the rush for homesteads, with the discovery of oil, with the sudden expansion of the movies, and latest in the series, with the industrial upsurge during the war. A familiar picture by now. Not all the warworkers will remain, but it is safe to guess many of them will. They’ll stay FORECASTING to enjoy California’s highest-in-history economic level. This history-based forecast spells op portunity. To serve you in this rich mar ket, Bank of America maintains com plete banking offices in 300 California cities and towns. "The California Trend,” a factual study, will help you plan your business if your plans include California. Write Dept. AD, 300 Montgomery St., San Francisco 20, for a copy. Bank of America, a member of the Federal Reserve System and the Federal D eposit Insurance Corporation, has main offices in the two reserve cities of California —San Francisco and Los Angeles. California’s Statewide Bank. IB a n k a t A m e r ic a N A T IO N A L LO N D O N , E N G LA N D , s a v i n g s B R A N C H : 12 A S S O C IA T IO N N IC H O L A S LANE, LO N D O N , E.C.4 ◄ RESOURCES OVER 5 BILLION DOLLARS ► Blue and Gold B A N K of A M E R I C A T R A V E L E R S C H E Q U E S are available through authorized banks and agencies everywhere. Carry them when you travel. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker December 1945 38 Returns to Chemical L ieu ten an t C om m ander E d w ard C. N ew fang has re tu rn e d to th e Chemical B ank and T ru st Com pany, New York, after fo u r y ears service in th e U. S. N avy and has resum ed his position as rep re sen tativ e of the b ank in the states of M ichigan, Illinois, Iowa, W isconsin and M innesota. Wins Golf Trophy No Market Losses M ahlon E. Shanahan, a ssistan t cash ier of th e City N ational B ank and IF New Director Y O U IN V E ST YOUR M ONEY — in our 3% Fed THOMSON & M cK i n n o n erally insured cer tificates, have STOCKS * BONDS COMMODITIES 216-218 Empire Bldg. w h i ch safety, li D E S M O IN E S Phone 4-2127 quidity and free 11 W a l l S t r e e t , N e w Y o r k 2 3 1 S . L a S a l l e S t.* C h i c a g o B r a n c h e s i n 34 C i t i e s dom from market losses. Write for our weekly Stock Survey D IR E C T G eo rg e E. V ir d e n , S e c re ta ry The Russell County Building & Loan Association P R IV A T E W IR E Laverne M* Barlow M anager M e m b e rs N e w Y o rk S to c k E x c h a n g e a n d o th e r p rin c ip a l e x c h a n g e s RUSSELL, KANSAS r ft A S K ’EM TO BUY »> • Twenty-five years ago autom obile accessory m anufacturers, seeking to develop a m arket through gasoline filling sta tio n s for b u m p ers, w in d shield wipers, stop lights and other items, and w ishing to create sales consc io u sn e ss a m o n g fillin g s ta tio n operators, h it upon the sim ple slogan o f "ask ’em to buy.” U p to that tim e, w hen we stopped to buy gas we g o t gas . . . and nothing else. A ttendants never th o u g h t to check our oil, or clean our windshield, or look at our tires . . . and they cer tainly never tried to sell us anything. H o w ev er, after they started asking people to buy som ething they got such good results that they began to feel their oats and becom e really sales conscious. U ltim ately all the "extras” they sold to the public became stand- ard equipm ent, but the filling stations w ent right ahead building up an effec tive nationw ide sales organization and, w hen they again have som ething to sell, they’ll be right in there pitching. T he p o in t o f this story is that banks, too, now face the problem o f build ing effective sales organizations. They already are starting to " s p o t” their sales conscious people and m ark them as future sales managers. O ne o f the easiest ways to encourage this sales consciousness is to get bank people to sell som ething right now. S o m e th in g sm a ll, p e rh a p s , lik e Personalized Checks, w hich are easy to sell because they are well received and d o n ’t cost m uch money. For $1.25 your custom ers can get 200, together w ith a handsom e gold-stam ped cover. W hy not "ask ’em to buy” . . . today! N E W Y O R K , CL E V E L A N D , C H I C A G O , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 The M ercantile-Com m erce B ank and T ru st Company, St. Louis, has an nounced th e election of Jo h n L. W ilson to th e b a n k ’s board of directors. Mr. W ilson is presid en t of th e St. Louis Public Service Com pany and also p resid en t of A m erican City Lines. Before com ing to th e St. Louis P u b lic Service Company, W ilson has been connected w ith M ack T rucks, Inc. for 22 years, his last position w ith th a t concern being m anager of th e bus de p a rtm e n t for 19 cen tral states. Free Samples The C. L. Dow ney Company, H an n i bal, M issouri, m a n u factu rers of “SteelS tro n g ” Coin W rappers, is offering to send free of charge to any in terested b ank executive a box of sam ples of all its various products. T his box con tain s actual sam ples of each of the num erous types of coin w rap p ers m ade by the Downey Company, and should prove of in te re st to any bank teller or o ther executive. Installs ThriftiChecIc One w eek in advance of th e formal opening of its new and m odern second floor lobby, th e TliriftiC heck plan for no-m inim um -balance checking account service w as announced by th e M utual N ational B ank of Chicago. The M utual N ational B ank w as ch ar tered du rin g th e first W orld W ar in Novem ber, 1917. F ra n k C. R athje, president, is also p resid en t of Chicago City B ank and T ru st Company, and is presid en t of the A m erican B ankers A ssociation. E d m und D. O’Connell, vice presid en t and cashier, u n d er w hose supervision the TliriftiC heck plan is being installed, is a v eteran of W orld W ar I, h av in g served w ith th e fam ous 6th (YD) Division, being severely w ounded in action in th e A rgonne F orest. He joined th e staff of th e M utual N ational B ank in 1920. W H A T DO YO U THINK Manufacturing Plants at : Northwestern Banker T ru st Com pany of Chicago, w on theG eneral C harles G. D aw es’ T rophy in th e an n u al golf to u rn am en t held for officers and em ployes of th e bank at the M edinah C ountry Club recently, w ith a low gross score of 79. Tom G eary led in th e low n et w ith a 74. Miss Hazel McCaffrey w on in the ladies’ event w ith a low gross of 93. Besides th e golf to u rn am en t th ere w as baseball, tennis, horseshoes and bridge. KA N SA S C I T Y , ST. PAUL (C ontinued from page 7) th e ir suprem e efforts du rin g the w ar. W hat if it does tak e longer to pay the bill. These boys need a b reath in g spell.” OUR 50th YEAR 39 L. B. Carraher, cashier, Stam ford B ank, Stam ford, N ebraska: “In m y opinion th e v ery size of th e w ar debt is one good reason for a m oderate red u ctio n in incom e taxes. The debt is so large th a t u ltim ate li quidation cannot be hoped for w ith in several g enerations. The elim ination of th e large outlay for w ar plus recov eries from th e sale of su rp lu s m ate rials should enable us to balance th e budget, and allow som e reduction in taxes. “W e cannot ‘kill th e goose th a t lays th e golden eggs’ and some ta x red u c tion m ay conceivably be such a stim u lant to business and em ploym ent th a t th e ‘ta k e ’ w ill be sufficient to provide for o rd in ary g o v ern m en tal expenses and am o rtizatio n of th e debt over a 50 to 100 y e a r period. Predicated, of course, on an early re tu rn of cost of g o v ern m en t to app ro x im ately pre-w ar levels, or low er.” A sa Thom as, vice p resid en t and cashier, N ational B ank of Toledo, To ledo, Iowa: “ I th in k th a t in face of existing econom ic conditions, a red u ctio n in incom e taxes, such as has been re cently prom oted, is h ighly in co n sisten t w ith good bu sin ess principles, at th is tim e.” J. W. E dge, president, T ipton State B ank. T ipton, Iowa: “I th in k Congress w as justified in reducing th e su rta x and excess profits tax es im posed d u rin g th e w ar b u t h e a rtily disapprove ex em pting 12 m il lion sm aller ta x payers. U nder our dem ocratic form of govern m en t every m an and w om an h as th e equal rig h t to vote taxes upon th e people, so every m an and w om an w ith a reasonable incom e should co n trib u te in some sm all w ay to w ard paying th a t tax. T hey should assum e some resp o n si b ility for th e privilege of being an A m erican citizen. The labor unions w ith an incom e of 383 m illions last y e a r and th e co-operatives w ith an incom e of over tw o billion should not be ta x free. T hese th re e groups con tro l our elections to a large extent, w hich accounts for th e special p riv i leges given th em by Congress. It is undem ocratic and sm ells of politics.” R. E. D riscoll, president, F irs t N a tional B ank of Black H ills, R apid City, South Dakota: “I th in k a red u ctio n in incom e taxes is justified on th e w ell-know n th eo ry th a t business cannot p ro sp er w ith o u t relief from w ar-tim e ta x m easures. It should be accom panied by d rastic re OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ductions in g overnm ent spending. The first prem ise is p a rtly corrected by the new ta x m easure w hich becam e law on N ovem ber 8th and h e re ’s hoping Con gress w ill have th e fo rtitu d e to attack th e second prem ise.” .T. I j. Graf, cashier, State B ank of S treeter, S treeter, N o rth Dakota: “I th in k it w ould be a very poor m ove to cut th e incom e taxes at th is tim e, due to the fact th a t th e w ealth and incom e is here now. Taxes are a v ery fine w ay to pay any kin d of a debt since th ey are on an in stallm en t basis. The debt of our co untry is large and so is our n ational incom e as a whole. It is an easy m a tte r now to pay a good share of th is income tow ards our governm ent debt, w here as, if th is debt rem ains and th e excess m oney th ro w n on th e p u rchasing m a r ket, it w ould only ten d tow ards help ing to m ake w h at item s are h ard to get now m ore scarce, and spending m ore flush. Our great national incom e is not going to be every y ear w h at it has been in th e p ast 7 years, hence I believe in paying a good incom e tax w hile we have it.” F ed eral In te rm e d ia te C re d it B ank C o n so lid a te d D e b e n tu re s O f f e r . . . Desirable Short M aturities CpHEY AFFORD a popular medium 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 larly for subscription in denominations ranging from $5,000 to $100,000, due at convenient intervals up to one year. Debentures which mature within six months are acceptable as collateral security for fifteen-day borrowings by member banks of the Federal Reserve System. < THE F ED ER A L INT ER MED ÍAT E CREDIT BA N K S Requests fo r other saiiem information respecting the above described issues should be addressed to C H A R L E S R. D U N N , F isc a l A g e n t 31 N assau Street N ew Y o r k 5, N . Y. Northwestern Banker December 1945 40 t \ PORTAL TO WORLD SERVICE fo r American Business Men A m e r i c a n b u s i n e s s m e n . . . travelers . . . bankers know the American Express pre-war network of world-wide offices —those little havens of "home” which everybody visited, and where they called for their mail. Twenty-three of these offices are already re-estab lished. Others are ready to reopen their doors as soon as conditions permit. In conjunction with its home offices, the Company is now able to serve your clients in its new vision of foreign trade. Whatever the requirements—T ravelFinance—Traffic—the Company’s long experienced staff offers its technical aid. BUSINESS TRAVEL —A ir and Steam ship Tickets, Itinerar ies, Routes, Costs, H otel Accom m odations. TRAVELERS CHEQUES—T he only readily acceptable, un i versally recognized international travel funds now avail able. FINANCIAL SERVICE —F oreign Exchange, Foreign R em it tances, C ollections, Travelers’ Letters o f Credit. OVERSEAS TRAFFIC —Export and Im port Sh ipping, Cus toms Clearances, Placem ent o f M arine Insurance, D ocu m enting from poin t o f origin to destination. This specialized American Express Service is offered to simplify and speed the cultivation of the rich mar kets awaiting American Business overseas. Your in quiries are invited. American Express IVorSti S e rvice 6 5 B r o a d w a y , N e w Y o r k 6 , N. Y . A m s te rd a m , A n t w e rp , A th e n s, B a s ie , B o m b a y , B u en o s A ir e s , C a ir o , C a lc u t ta , F lo re n ce , G e n e v a , G la s g o w , L iv e rp o o l, Lo n d o n , Lu ce rn e , M a n ila , M a r s e ille s , N a p le s , N ice , P a r is , Rio d e J a n e ir o , R om e, R o tte rd a m , Z u ric h . Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 OUR 50th YEAR And Especially as Such Protection Applies to the Loss of Cash Letters NE of th e first th in g s I learned about Cash L e tte r p rotection w as th a t I did n o t know quite so m uch ab o u t th e su b ject as I had th o u g h t. T his illu m in atin g fact w as b ro u g h t hom e to me w ith considerable e a rn estn ess by o u r in su ran ce coun selors. A lthough not fully realized and ap preciated by m an y b an k ers, it is a shortcom ing of all sta n d a rd form s of B an k ers B lan k et Bonds th a t th e y do not cover Cash L e tte rs w hile th e y are in tra n s it in th e care of th e m ails or th e express com pany. The fact th a t th e Cash L e tte r of th e b a n k e r is u n in su red is a rev elatio n to some, and to o th e r b an k ers a really serious haz ard causing w o rry and e x tra detailed w ork on recording th e item s involved in th e Cash L etter. To fill in th e gap of pro tectio n and com plete th e job w hich th e stan d ard B lan k et Bond has left unfinished, our in su ran ce counselors have developed a special Cash L e tte r in su ran ce policy. A radical featu re of th is policy is the fact th a t it not only provides the needed protection, b u t also abolishes th e necessity of keeping detailed tr a n scrip ts of Cash L e tte r item s. The only record it req u ires is a duplicate adding m achine tape. T his double fe a tu re ra th e r appealed to me, p a rtic u larly, as w as pointed out, because th e saving in labor and m aterials cost w ould m ore th a n cover th e an n u al p rem iu m cost. H ow ever, I had c ertain m isgivings, w hich th e re p re se n ta tio n s of th e pol icy’s sponsors could not q uite allay. W ould th e plan really w o rk —could we afford the risk of rely in g e n tire ly on O By Frank O . Potter President Citizens S ta te Bank Park Ridge, Illinois a m ere adding m achine tape, w hen freq u en tly our Cash L ette r item s ran into th e thousands? W ould w e really be able to trace lost item s on the basis of such skeleton data? W hat sensible explanation could w e offer custom ers w ho dem anded descriptions of item s charged back to th e ir ac counts? A nd how about th e collection of exchange charges—w ouldn’t th a t be p re tty h ard to effect u n d er such cir cum stances? In spite of these doubts, how ever, I resolved to take the policy on. The in su ran ce I felt we m ust have, re gardless of th e o th er featu res of the policy. The o p p o rtu n ity to test th e efficacy of th e in su ran ce and th e adequacy of th e adding m achine tape as a record, cam e m uch sooner th a n I expected. J u s t as I reached hom e late one a fte r noon, a few m onths afte r I had tak en th e Cash L etter policy out, I w as called to th e telephone and frantically inform ed th a t our daily Cash L etter had been stolen. Follow ing th e re g u lar routine, it had been tu rn e d over to the express agency for dispatch to our correspondent b an k in Chicago, only 15 m iles away. The Cash L etter had “d isap p eared ” from a hand tru c k on th e statio n platform . It had not even reached th e train . It contained close to $100,000.00 in clearing item s. I w as dum bfounded. N othing of th e so rt had ever happened to us before. It had alw ays been “th e o th er fellow ” w ho had created new s of th a t sensa tional character. How lucky we w ere, I reflected, to have tak en out th e Cash L e tte r insurance. W e w ere covered, as w e w ould not have been had we relied solely on our B lanket Bond. T hen I rem em bered th e adding m a chine tape record. A kind of cold, p rick ly feeling began to spread from th e back of m y neck, as m y earlier m isgivings h astily began to reassert them selves. Visions of th e seem ingly hopeless task of try in g to reconcile the thousands of item s in th e Cash L etter from th e m eager inform ation con veyed by th e tape, loomed in the back of m y m ind. I gave im m ediate in stru ctio n s to resum e th e keeping of full tra n sc rip ts th e n ex t day. I could ju st as w ell have saved o u r selves th a t trouble and expense. For, w ith th e assistance of our insurance rep resen tativ es and our correspondent bank, w e had th e en tire Cash L etter com pletely reco n stru cted in ju st a little over tw o days. By the end of as m any more, all identified item s had been charged back to cu stom ers’ ac counts. The cu sto m ers’ reaction was, on th e whole, all right, th a t is, the charges w ere accepted and duplicate checks secured. T here w ere, of course, th e inevitable exceptions. N eighbor hood stores th a t k ep t no records, o thers w ho w ere u n aw are of the ex istence of a deposit agreem ent and its term s and still oth ers w ho w ere u n able to obtain duplicate checks. F o r m any individuals it w as an education. T hey know now th a t th e ir deposits are accepted subject to collection and th ey have learned (and quite agree) D id you know th a t y o u r B a n k e r’s B lanket B ond does n o t p ro tec t v o u r Cash L e t t e r while it is in transit by mail or express? A s k about our Cash L e t t e r Policy, which fills the gap. Insurance Counselors O U R 5 0 th Y EA R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to B anks Scarborough &> Company FIRST NATIONAL BANK BUILDING • CHICAGO I L L I N O I S • STATE Northwestern Banker 4325 December 1945 42 th a t th e b an k cannot and should not be expected to do th e bookkeeping for them . In only a few cases did we have irrita te d custom ers w ho could n o t o btain d u plicate checks. W e re versed th e charges to th e ir accounts for reasons of good w ill and later covered ourselves ag ain st such con tingencies by m eans of a special en dorsem en t to th e policy. The n et loss a fte r recoveries—w hich included a n u m ber of checks fished out of th e Chicago R iver and re tu rn e d TO SERVICE M EN AND W OMEN D o n ’t give up y o u r N a ti o n a l Service Life I n s u r a n c e Som e of you have carried y o u r N a t ional Service L ife In su ra n ce as long as four years. A t tim es, it m ay have seem ed to ta k e a p r e tty big c h u n k o u t of y o u r p ay. A nd now th a t y ou a re th ro u g h w ith th a t life— or alm ost th ro u g h — th ere m ay be a te m p ta tio n to d ro p y our service life insurance. D o n ’t do it. H old on to t h a t in su r ance. In th e first place, it is low cost in su r ance because th e F ed eral T rea su ry bears a s u b s ta n tia l p a rt of th e costs. Secondly, lapsed insurance is no p ro te c tio n . In su ran ce b o u g h t la te r to re place it will c ertain ly cost you m ore . . . an d if you should becom e u ninsurable, c an n o t be b o u g h t a t a n y price. Few people reg ret keeping life insurance. B ut m any a person h e artily wishes he had n o t lapsed a policy b o u g h t a t an early age. Y o u r p resen t N a tio n a l S ervice policy is a lim ited term policy, providing for conversion to one of several p e rm a n en t form s of g o v ern m en t insurance. I t will p ay you to find o u t im m ed iately th e privileges a n d o p tio n s to w hich you are e n title d . Life in su ran ce a g en ts th ro u g h o u t th e n a tio n , encouraged b y th e ir com panies, are gladly a d vising service m en and w om en as to th e benefits a n d privileges av ailable under N a tio n a l S ervice Life Insurance. N w N L ag en ts are fully a c q u a in te d w ith these provisions a n d are placing th is inform ation a t th e disposal of th e ir clients free of charge a n d w ith o u t a c e n t of profit to them selves. by obliging w orkm en—w as a little over $8,000. T his am o u n t w as p ro m p t ly paid us by th e in surance com pany. In tracin g lost item s te lle rs’ m em ories proved a big help. So did th e co operation of neighborhood m anufac tu rin g concerns, w ho w atched o u t stan d ing paychecks. U nidentified item s were, for th e m ost p art, checks cashed over the counter. S ubsequent ly a nu m b er of additional item s w ere recovered. These, of course, w ere tu rn e d over to th e insurer. To sum up, on th e basis of our actual experience, w e reg ard Cash L e tte r in su ran ce as an in teg ral p a rt of our general, over-all insu ran ce plan. W e have given up en tirely th e keeping of detailed tra n sc rip ts of Cash L etter item s and confidently rely on th e add ing m achine tape. The re su lta n t a n nu al saving in labor, equipm ent, and supplies cost ru n s to tw o or th ree tim es th e cost of th e insurance. W e w ould n ot consider going back to the old system . H ere are a few DO’s and DON’T ’s for those w ho are in terested: D on’t destroy th e sequence of item s from th e tim e th ey leave th e cage u n til th ey are ru n off on th e m achine and sen t out for collection. Don’t be lulled into a false sense of secu rity by im agining th a t even th e m ost elaborate system of records can tak e th e place of insurance. Do contact every paying teller im m ediately afte r a loss is dis covered and have him m ake a list from m em ory of checks cashed on th e day of th e loss. 7 a Do keep yo u r deposit tickets for a reasonable len g th of tim e. Do rem em ber th a t th e ability to trace lost item s is no guaran tee th a t you w ill be able to collect. Dale Brown Heads F .A .A . Dale Brow n, a ssistan t vice president of th e N ational City B ank of Cleve land, Ohio, w as elected p resid en t of th e F inancial A dvertisers A ssociation in its 30th an n u al convention at The H om estead, H ot Springs, Va. O ther DALE BROW N P r e s i d e n t F in a n c ia l A d v e r ti s e r s officers elected were: Sw ayne P. Goodenough, Lincoln R ochester T ru st Co., R ochester, N. Y., first vice president; R obert L indquist, A m erican N ational B ank & T ru st Company, Chicago, Illi- (D u i ß a ttiv e ^ A a e u td , WE WISH YOU HAPPINESS GOOD FRIENDS 7^e G lteei a l G laU tm aà N o r t h w e s t e r n N a tio n a l L IF E ALLIED MUTUAL CASUALTY COMPANY Harold S. Evans, President Hubbe ll Building Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 Des Moines 7, Io w a O U R 5 0 th YEAR 43 nois, second vice president; Allen C raw ford, B an k ers T ru st Com pany, D etroit, M ichigan, th ird vice president, and F re d W. M athison, N ational Secur ity B ank, Chicago, tre a su re r. Board of d irecto rs elected included: J. Lew ell Lafferty, F o rt AVorth N a tional B ank, F o rt AVorth, Texas; Jo h n L. Chapm an, City N ational B ank & T ru st Com pany, Chicago; Jo h n Delaittre, F a rm e rs & M echanics Savings B ank, M inneapolis, M innesota; Rod McLean, C alifornia Bank, Los Angeles; L. L. M athew s, A m erican T ru st Com pany, South Bend, Indiana; George G. AVare, F irs t N ational B ank, L eesburg. F lorida; E. S. P atterso n , F irs t C entral T ru st Com pany, A kron, Ohio; L ester B. Johnson, A m erican T ru st Company, San Francisco, C alifornia; Jam es D. P ritc h a rd , Society for Savings, Cleve land, Ohio; B ender G ilbert, E rie C oun ty Savings B ank, Buffalo, N. Y.; E arl MacNeill, C ontinental B ank & T ru st Com pany, N ew York; A drian A. McGonagle, The D etroit B ank, D etroit, M ichigan; Miss G race Mack, M issis sippi V alley T ru st Com pany, St. Louis, M issouri; O. E. M anning, G ray & B ruce T ru st & Savings Com pany, Owen Sound, O ntario, Canada; J. M arshall Crosm an, Real E sta te T ru st Company, P hiladelphia, P ennsylvania, and M ark H anna, T he B an k ette Com pany, Bos ton. M assachusetts. S P E C IA L TO BANKERS! Accident Insurance paid up to March, 1946, for only $2.00. P olicy paying $5,000.00 for loss of life, lim bs, or sight, w ith tim e loss covered up to two years. No m edical exam ination and no red tape. Sim ply write for application and literature. MINNESOTA COMMERCIAL MEN'S ASSOCIATION PA U L CLEM ENT, S e c r e ta r y 2 5 5 0 P illsb u ry A ve. So. M in n ea p o lis, 4 , M in nesota Case D ism issed Judge: “AVho w as d riv in g w hen you collided w ith th a t car?” D ru n k (triu m p h a n tly ): “N one of us; we w ere all in th e back seat.” Bankers: We sp ecia lize in writing May this season seem m ore jo lly fo r the service you have autom obile an d fire insur ance. ren d ered your co m m u n ity in the year that is draw ing to a S p ecial bank service attractive p r o p o s i t i o n close anti m ay the fu tu re hold go ld en op p o rtu n ity fo r you all. and for banker agen ts. O ur p leasu re is m ade greater by ou r frien d sh ip with you and ou r h ap p in ess is m ore com p lete w ith each o p p o rtu n ity to serve you. ★ CENTRAL STATES MUTUAL INSURANCE ASSOCIATION F ir e In s u r a n c e C o . Mt. P l e a s a n t , Io w a E. A. HAyES, W estern M utual P r e s id e n t O. T. E s t a b lis h e d OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W ILSO N , S e c re ta ry N inth-and G rand Des Moines 8, Iow a 1929 Northwestern Banker December 1945 44 DOLLARS ACROSS M an y o f th e p e o p le liv in g in c o u n tr ie s lib e r a te d b y o u r v ic to r io u s a r m ie s a re in d ir e n e e d o f f o o d an d c lo th in g . T h e ir r e la tiv e s in th is c o u n tr y a re a n x io u s to se n d th e m m o n e y . S e n d in g m o n e y o v e r s e a s th e s e d a y s is n o t as s im p le as it o n c e w as. H o w e v e r , i f y o u r c u s to m e r s r e q u e s t th is s e r v ic e o f y o u , le t u s h e lp y o u an d h e lp th e m . W e w ill b e g la d to h a n d le th e n e c e s- THE OCEAN sary d e ta ils . P a y m e n ts m a y n o w b e m a d e to a ll E u r o p e a n c o u n tr ie s w ith th e e x c e p t i o n o f A u s t r ia , B u l g a r ia , G e r m a n y , H u n g a r y an d R o u m a n ia . W e a re f a m i l i a r w ith th e r e g u la tio n s a n d f e d e r a l r e s tr ic t io n s g o v e r n in g s u c h tr a n s fe r s o f m o n e y . U se N o r th w e s te r n ’s f o r e i g n se r v ic e . A t e le p h o n e c a ll, t e le g r a m , o r le tt e r to u s w ill start y o u r d o lla r s o n th e ir w ay. JO SE P H F. RING LA N D , P r e s i d e n t Department of Banks and Bankers D. E . C roulev V ic e P r e s i d e n t L. P . G isvold Carl F. W iesek e A. F. J u n g e M orrow P ey to n A s s t. C a s h ie r A s s t. C a s h ie r R e p r e s e n t a ti v e R e p r e s e n t a ti v e NORTHWESTERN NATIONAL BANK of Minneapolis Marquette Ave.— Sixth to Seventh St. M e m b e r F ed era l D e p o sit In su ra n ce C o rp o ra tio n Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19b5 O UR 5 0 th YEA R 45 MINNESOTA NE WS G E O R G E A . B E IT O P r e s id e n t G o n v ick Assistant Cashier O. C. K uhl w as nam ed a ssistan t cashier of th e F irs t N ational B ank of W ilm ont, M innesota, at a recen t m eet ing of th e board of directors. K uhl recently re tu rn e d from 41 m o n th s of service w ith the arm ed forces, w ith 30 m onths overseas. B efore he en tered th e service he had been em ployed by th e bank. The p ersonnel of th e bank includes C. W. B ecker, president; E. L. M eyer, vice p resid en t and cashier; G ertrude Balk, bookkeeper and teller, and Mrs. E. L. M eyer, assistant. Returns to Marquette National Gordon L arkin, fo rm er vice p resi d en t of th e M arquette N ational B ank •of M inneapolis, M innesota, has re- G O R D O N L A R K IN R e t u r n s to M a r q u e t te N a ti o n a l tu rn e d to th e bank a fte r a three-year leave of absence to do w ar w ork. He resum es his fo rm er title of vice p re s ident. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Mr. L ark in has been serving as com ptroller and secretary of the a ir plane division of th e Char-Gale M anu factu rin g Co. at St. Cloud. Mr. L arkin, w ho is 43, w as born in St. P aul and w ent th ro u g h high school there. He g raduated in 1929 from M in nesota College in M inneapolis and in 1933 from the M innesota-M inneapolis College of Law. A lthough adm itted to th e bar, he continued in th e banking profession, w hich he had entered as a clerk in th e W estern State B ank of St. Paul. He also spent a year in the State Sav ings B ank in St. P aul before joining M arquette N ational B ank in 1926. Sub sequently he w orked up th ro u g h the posts of a ssistan t cashier and cashier to become a vice presid en t in 1934. a h eart attack w hile on a h u n tin g trip n ear F aulkton, South D akota, last m onth w ith his son, Jerry , of Min neapolis. In 1934 Mr. Carnes w ent to St. Jam es w here he and W alter Bugge started the Citizens State B ank of w hich he w as vice p resid en t un til last spring, w hen he left to go into th e in surance business. He is survived by his wife, form erly of W inthrop, M innesota, and tw o sons, J e rry and M ark, both of M inneapolis, and both recently discharged from service. New Position Lloyd E rd al has been appointed as sistan t cashier of the State B ank of Bricelyn, M innesota, and started his new duties th ere recently. He had p re viously sp ent th ree years at the State B ank of W estbrook, M innesota, before en terin g the arm y. He spent 26 m onths in the arm y air corps and w as recently released. W ya rd Named Director W illis D. W yard, president of the F irst and A m erican N ational Bank, D uluth, M innesota, has been nam ed Winona Men Back R etu rn of ex-L ieutenant C. W. B ritts, U.S.N.R., to resum e his position as vice p resident and director of the F irst N ational B ank of W inona, M innesota, w as announced recently by bank offi cials. R etu rn of ex-Sergeant E lgin O. Sonnem an to his position as teller at th e b ank also w as announced. Mr. B ritts, en tered service in April, 1943, as a lieu ten an t (ju n io r grade) and w as indoctrinated at Quonset Point, Rhode Island. His first assign m en t w as as officer in charge of the n av y ’s aircraft tu rre t school in D etroit. M ichigan. Mr. Sonnem an w as inducted May 5, 1942; re tu rn e d to th e states for hos pitalization May 12, 1945, and w as dis charged October 12th. Mr. Sonnem an took basic train in g at F o rt F ran cis E. W arren, W yom ing, and w ent overseas A ugust 29, 1943. He served on G uadalcanal, B ougainville and Luzon w ith an evacuation hospi tal u n it as chief clerk in the m edical section. George Carnes George Carnes, 65, b an k er in St. Jam es, M innesota, for 10 years, died of w. D . W Y A R D E le c t e d to D ir e c t o r s h i p to a directorship in the In terlak e Iron Corp. The corporation has plants in D uluth, Chicago, Toledo, and Erie, w ith h ead q u arters in Cleveland. Superintendent Resigns S u p erin ten d en t E. M. Besch of the Milroy, M innesota, public school sub m itted his resignation at the school board m eeting recently. Besch, w ho has been at the M ilroy school for eight and one-half years, Northwestern Banker December 1945 46 -• w ill leave D ecem ber 27 to begin w ork as a ssista n t cashier in th e S tate B ank of A rlington, M innesota, Ja n u a ry 2. Veteran Elected G. M. G rabow has been elected cash ier of th e F a rm e rs N ational B ank of A lexandria, M innesota, and has en tered upon his duties there. Mr. G rabow has had 10% y ears of banking experience before th e w ar, in w hich he served for th re e y ears and seven m onths, being discharged from the navy in A ugust. H e left w ith th e task force th a t m ade th e invasion of N orth Africa, and w as am ong those MI NN E S O T A N E W S w ho landed a t Casablanca. His ship did convoy du ty in th e M editerranean u n til late in 1943 w hen he w as tra n s ferred to duty at th e subchaser tra in ing cen ter at Miami, Florida. To Liquidate The Citizens State B ank of W est brook, M innesota, w ill go into liquidatio n Ja n u a ry 1 and a new b ank will begin operation im m ediately. The rea son for th e liquidation is th e re tire m en t from th e banking business of T. V. B eterson, president, and Glen Villa, cashier, w ho have been connected w ith th e bank for years. The W estbrook J fih e J ia r v e H j Mo l in e th e 3 u t u re M A C H IN E R Y lA J a itâ f o r j \ o O ne 4 '! The wise farmer of today isn’t stand ing idly by waiting for what the future may bring . . . He knows that prosperity for himself and his family will come only with sound, careful planning and good manage ment of his farm. His plan of good management in cludes the use of modern power machinery, such as MinneapolisMoline Tractors and farm machines, to help him keep his soil in good condition and harvest bigger crops at less cost on time. MM machines enable him to increase the capacity of his land with new, improved methods and to produce new crops with greater profits. Local bankers, cooperating with the MM Machinery Dealer in their community, can do much to make new, modern machinery available to the farmers in their area, thereby benefiting the community as a whole. M in n e a p o l is -M o l in e POWER IM PLEM ENT COMPANY M I N N E A P O L I S 1, M I N N E SO TA, U. S. A. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December Î9b5 • bank is in excellent condition and has resources of about a m illion and a half. The affairs of th e b ank w ill be closed Ja n u a ry 1 and depositors have been notified to p re se n t th e ir claim s before th a t date. A c h a rte r for the new ban k is ex pected to be approved in tim e so b ank ing service in W estbrook will be u n in terru p ted . Itasca County Bankers Meet The Itasca County B ankers Associa tion held its an n u al election m eeting on T hu rsd ay evening at th e Rainbow club, G rand Rapids, M innesota, nam ing H. J. D ockstader of Bovey as p resi d en t of the association. W. King of G rand Rapids w as elected vice p resi dent; R obert Cam eron of Deer River, treasu rer; M ilton F ider of G rand R ap ids, secretary; W illiam H olt of Calu met, H. V. W akkinen of K eew atin and A. G. L arson of N ashw auk, nom inating com m ittee. F ifty officers and directors from K eew atin, N ashw auk, Calum et, Bovey, Coleraine, G rand Rapids, D eer R iver and B igfork w ere present. V isiting ban k ers from D uluth and the Tw in Cities included H erm an M atzke, R obert H otchkiss, W illis P u tn am of D uluth; K enneth M artin, Crowley and Engstrom of M inneapolis, and P. S turley of St. Paul. Celebrate 40th Year The F irs t N ational B ank of H op kins, M innesota, celebrated its fo rtieth an n iv ersary last m onth w ith the an nouncem ent th a t deposits of th e bank now total m ore th a n $3,000,000. The original capitalization w as only $25,000. The y ear th e F irs t N ational started business th e W rig h t b ro th ers w ere m aking th e ir first long distance a ir plane flight of 23 % m iles and the R usso-Japanese w ar had ju st ended. Two of th e original organizers are still living. T hey are H ilm er Olson, w ho re tire d as presid en t in 1940 b u t is still active on th e board of directors, and A ndrew Ju stu s, Sr. P resen t officers of th e b an k are: F ra n k Kriz, president; W alter Zastrow , executive vice president; Otto Cermak, vice president; Svante Severson, cash ier, and D orothy B ergm an, assistan t cashier. D irectors are: Kriz, Zastrow , Cerm ak, Olson, Dr. J. C. B ryant, George Brum , and Mrs. A ngeline Souba. W ithout Fail Science Prof.: “W h at happens w hen a body is im m ersed in w a te r? ” Coed: “The telephone rin g s.” O U R 5 0 th Y E A R 47 T w i n G L E N N A L E E N , w ho recen tly be cam e general m an ag er of the N o rth w e ste rn Bell T elephone Co., M innesota area, has been ap pointed to the advisory board of the N o rth w estern N ational B ank Lincoln office. John M oorhead, w ho w as a ssista n t secretary of th e N o rth w e ste rn N ation al B ank of M inneapolis w hen he en tered active naval service in A ugust, 1942, has re tu rn e d and has been nam ed assistan t vice p resid en t and w ill act as loan officer. He joined th e b a n k ’s tru s t d ep artm en t in 1930 a fte r grad u atio n from th e U n iv ersity of M innesota and in 1934 w en t into th e bond d ep artm en t. W . A . M a u r e r has re tu rn e d from a leave of absence to th e E m p ire N a tional B ank of St. P au l and has been J a m ieso n & C om pany C i t y N e w s By E. W. Kieckhefer Special C orre spon de nt Northwestern approved w ill be operated independ en tly w ith capital of $50,000, su rp lu s of $10,000 and undivided profits of $5,000. Banker elected an a ssistan t vice p resid en t of th e bank. H earing has been scheduled on an application to th e M innesota Com m erce Com m ission for a c h a rte r for the H ighland Park State Bank in St. Paul, to be located in H ighland Village shopping cen ter n ear the F o rd plant. Officers of th e new bank w ill be A. L. Hitt, president; M artin E rnst, vice president; M elvin Olson, cashier and m anaging officer. R itt is p resid en t of the M idw ay N a tional Bank of St. Paul, but he has announced the H ighland P a rk b ank if The F irs t N ational B ank of M inne apolis has moved its in stallm en t loan and v e te ra n s’ d ep artm en t to new ly equipped q u a rte rs on th e first floor of the F irs t National-Soo L ine B uild ing to provide easier access for the grow ing volum e of business in these d epartm ents. The new q u a rte rs contain a sem i circular lobby finished in A m erican w aln u t w ith black and w hite tile floor. L ighting is provided by both incan descent lights in bronze fixtures and by fluorescent fixtures. E. C. M addaus, assistan t cashier, is in charge of the installm ent loan division and A rthur C. Buffington heads th e v e te ra n s’ loans departm ent. V eteran s’ loan business has been i i fit*e l i r e e o - e r t iin u t i o n o f all d e p a rtm en ts assures rapid, efficien t h a n d lin g o f e v ery ty p e o f b a n k in g tra n sa ctio n . You Members N ew York Stock E xchange and Other Principal are in v ite d to u se a n y or all o f our fa c ilitie s . E xchanges ★ STOCKS BONDS COMMODITIES MINNEAPOLIS FARGO ST. PAUL GRAND FORKS DULUTH SIOUX FALLS EAU CLAIRE C «t v N a t i o n a l B a n k V \Si T i l 1 S T C O M P A N Y o f C h ic a ffo 203 SOUTH LA S A L L E STREET ( M E M B E R F E D E R A L D E P O S I T I N S U R A N C E CORP.) PRIVATE WIRES OUR 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker December 1945 48 • MI NN ESOT A NE WS p a rtic u la rly im p o rtan t in th e Tw in Cities because F o rt Snelling and WoldC ham berlain field are discharge cen te rs for th e arm y and n avy h ere and m any of th e v e te ra n s discharged at Camp McCoy, W isconsin, come th ro u g h h ere on th e ir w ay to th e ir hom es. M alcolm B. M cDonald, vice p re si den t and gen eral counsel of th e F irs t N ational B ank of M inneapolis, has been appointed Red Cross fund cam paign chairm an for M inneapolis and H ennepin county. He has been a dis tric t captain in th e last five Red Cross cam paigns. He succeeds H en ry S. K ingm an, presid en t of th e F a rm e rs and M echanics Savings B ank of Min neapolis in th e post. Goodrich L ow ry of th e N o rth w est e rn N ational B ank w as ch airm an of th e M inneapolis W ar Chest cam paign com m ittee th is year. The E dina S tate B ank in su b u rb an M inneapolis w hich recen tly w as ch a r tered by th e state banking com m is Financing International Trade i t e s u m p t i o n o f overseas tra d e stresses th e im portance o f having an in flu en tial b a n k in g c o n n ec tio n offering a w o rld w ide financial service. T h ro u g h a n e tw o rk o f b a n k in g co n tacts in foreign co u n tries, a n d this b a n k ’s specially tra in e d foreign b an k in g d e p a rtm e n t, w e p ro v id e facilities o f o u t' stan d in g advantage to c o rre sp o n d e n t b an k s. Y our b a n k is cordially invited to m ak e use o f th e good w ill d eveloped th ro u g h o u r eighty years o f in te rn a tio n a l business a n d b a n k in g ex p erien ce w ith co u n tries in this h e m isp h ere a n d overseas. sion has sta rte d construction of its new building, a one-story stucco stru c tu re of 28-foot frontage. A lfred E. W ilson, vice p resid en t of th e F irs t N ational of M inneapolis, is president of the new bank. G eorge W ilkens, a g ricu ltu ral econ om ist of th e F ed eral R eserve B ank of M inneapolis u n til he en tered th e navy, was hom e on leave recently and a t tended the F ed eral R eserve’s confer ence of a g ricu ltu ral econom ists in the district. He has re tu rn e d to service at G reat Lakes, Illinois, and expects to be discharged shortly. Forty-four m em bers and guests a t tended th e first m eeting of th e Tw in City B ank A uditors and C om ptrollers conference for th e 1945-46 season at St. Paul. S um ner Sinclair, N o rth w estern N ational of M inneapolis audi tor, rep o rted on th e national associa tio n ’s m eeting at Chicago and an nounced his successor for th is year would be A. W. M ills, cashier of the F ederal R eserve of M inneapolis, who w as presid en t of th e conference in 1944-45. He also announced F red Goff of the F irst N ational of St. Paul has been appointed vice presid en t for Min nesota to succeed Clarence Gieske, cashier of th e F irst Security S tate Bank of St. Paul. Officers of th e F ederal R eserve have confirm ed rep o rts th e b ank w ill build an addition. J. N. P eyton, said th e addition w ill be four to six stories and w ill be begun as soon as m aterials are available w ith o u t com petition w ith p rivate p o stw ar construction. Clarence E. Hill, chairm an of the board of directors of the N o rth w estern N ational Bank, has announced appoint m ent of M orrow Peyton as a rep resen t ative in the b a n k ’s d ep artm en t of banks and bankers. Peyton, son of J. N. Peyton, p resid en t of the F ederal R eserve of M inneapolis, w as dis charged from th e arm y recently as a captain. Before en terin g the service in 1941 he had been an apprentice w ith th e G rafton, N orth Dakota, N ational Bank, a sistan t to th e FDIC liquidator at W essington Springs, South Dakota, and th en w as associated w ith th e Stock Yards N ational of South St. Paul. F O R E IG N BAN K IN G DEPARTM ENT George H. Newbert The First N a tio n a l B a n k o f C h ic a g o MEMBER Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL DEPOSIT December 19^5 INSURANCE CORPORATION George H. N ew bert, 73, presid en t of the F irst N ational B ank of Mora, Min nesota, from 1904 to 1931, died u n ex pectedly of a h e a rt ailm ent w hile on a h u n tin g trip n ear his hom e recently. Mr. N ew bert first w ent to Mora to join the K anabec C ounty B ank 51 O U R 50th Y E A R 49 y ears ago. W hen th e nam e w as changed to th e F irs t N ational B ank in 1904 he becam e its p resident, re ta in in g th a t position for 27 years. He served in m an y civic e n terp rises and public offices in Mora. Mr. N ew bert is su rv iv ed by his w ife and one d au g h ter, Mrs. B ruce Buck, R enton, W ashington. Organize Ogilvie Bank Ogilvie, M innesota, w hich had been w ith o u t a bank since 1937, received com plete ban k in g facilities on N ovem b er 29th w ith th e opening of its own new b ank know n as th e Ogilvie State B ank w hich w as organized by a group of K anabec C ounty farm ers and b u si nessm en. A pproval has been secured for in su ran ce of deposits by th e F ed eral D eposit In su ran ce Corporation. The b ank is am ply financed by th e 36 stockholders, th e m ajo rity being lo cated in th e vicin ity of Ogilvie. Cap ital w ill be $25,000, su rp lu s $5,000 and undivided profits $5,000 fully paid in. T his tow n has u rg e n tly needed b a n k ing facilities since 1937 w hen the F irs t S tate B ank of Ogilvie w as liquidated and depositors paid off 100 p er cent. The d irecto rs are E arl B racew ell, Ja k e H anenburg, K. E. M cllhargey, H. E. Olson and F ra n k P. Pow ers. Mr. B racew ell is one of K anabec C ounty’s leading farm ers situ ated so u th of Ogilvie in S outhfork tow nship. Jak e H an en b u rg w as form erly cashier of th e F irs t S tate B ank of Ogilvie, and has been in business in Ogilvie for 20 years. At p re se n t he is th e ow ner and op erato r of Cash P roduce and has con siderable farm in g in terests. H. E. Olson is a p ro m in e n t b usinessm an at Cam bridge, is p resid en t of Beans, Inc., and has su b stan tial in v estm en ts in Isan ti co u n ty farm and business p ro p erties. He has served on the Cam bridge school boai’d for over 20 years and is a form er 10th D istrict Com m an d er of th e A m erican Legion. F ra n k P . Pow ers and K. E. M cllhargey are presid en t and vice p resid en t respec tively of th e K anabec State B ank of Mora. The officers are as follows: F ra n k P. Pow ers, president; Jak e H anenburg, vice p resident, an d G. G. K latt, cashier. information? . . . market data? . . . who’s who? Whatever your requirements — routine bank ing service, special information, or off-the-beatenpath assistance — the chances are that the facil ities, long experience and statewide contacts of the First Wisconsin National Bank of Milwaukee can supply the answer. T h is b ank is th e largest in th e state, an d over 85 per c e n t o f th e h u n d red s o f b anks th rou gh ou t W isco n sin are First W isco n sin co rresp o n d en ts. Banks and Bankers Division GEORGE T. C A M P B E L L ...................................... V ice P r e s id e n t RICH ARD J. L A W L E S S ...................... A ssista n t V ic e P r e s id e n t New Assistant Cashier At a recent m eeting of the board of directors of th e F irs t N ational B ank of W ilm ont, M innesota, O. C. K uhl w as nam ed a ssista n t cashier follow ing th e resig n atio n of G. C. M eyer. Mr. K uhl has ju st been discharged from the a rm y a fte r serving 49 m onths, two and one-half y ears of th a t tim e being O U R 50th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DONALD A. H A R P E R ...................... A ssista n t V ice P re s id e n t ■Member of* the Federal Deposit Insurance Corporation FIRST « O R S I» RATIONAL I ARK OF MILWAUKEE Northwestern Banker December 194-5 50 MINNESOTA * NEWS spen t in th e Pacific th e a tre as a staff sergeant. O ther officers of th e b an k w ho w ill rem ain in th e ir p resen t positions are: C. W. B ecker, p resid en t and chairm an of th e board of directors; and E. L. Meyer, vice p resid en t and cashier. ers answ ered th e question, “A re you m aking an y G. I. loans?” John Jargo, cashier, Jackson State Savings Bank, M aquoketa, Iowa: “So fa r we have m ade tw o G. I. loans. One for farm purposes and one for a home. W e have had several o ther applications b u t none w as sound.” G . I. LO A N S A . C. T h ie l, cashier, Security State B ank, New H am pton, Iowa: “Yes, we have m ade several loans. Two w ere u n d e r th e G. I. provisions for farm and hom e purposes, and tw o o thers w ere m ade to v eteran s th ro u g h th e bank. W e also have one application pending.” (C ontinued from page 16) sta n d a rd ra te of in te re st of four per cent. Instead, th e ra te of in te re st p re vailing in th e p a rtic u la r com m unity w ould be charged on G. I. loans. H ere is how some of th e Iow a b a n k Saving Time and Honey C. L . F R E D R I C K S E N P r e s id e n t M . A. W I L S O N V ic e P r e s id e n t Efficiency in industry is m easured in ''man-hours'' sa v ed . W . G. N E L S O N A s s i s t a n t V ic e P r e s i d e n t The sam e yard stick a p p lies to correspondent items. W . C. S C H E N K C a s h ie r The sa v in g of an hour or two per H . C. L I N D U S K I A s s i s t a n t C a s h ie r a n d M a n a g e r of A ir B a s e F a c i l i t y item, on m an y items, m ea n s d a y s sa v ed to your custom ers on their live stock, C. L . A D A M S A s s is ta n t C a s h ie r grain, and h a y items. Our J . S. H A V E R A s s i s t a n t C a s h ie r location in the heart of the “yards" en a b les us to sa v e "customer JA M E S L. S M IT H A u d ito r hours" in the collection of your Sioux City items! T L iv e H E S t o c k Na t io n a l OF SIOUX M Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E M B a n k CITY* I O W A w B E B December 1945 F, D . I . C . C. A. B u rm eister, a ssistan t cashier, M echanicsville T ru st and Savings Bank, M echanicsville, Iowa: “No, we h av en ’t m ade any loans to veterans y et.” E. AT. F lin t, cashier, A ndrew Savings Bank, A ndrew , Iowa: “W e h av en ’t m ade any loans. T h ere’s too m uch red tape involved.” F. J. Iw ert, cashier, M alvern T ru st and Savings Bank, M alvern, Iowa: “No loans as y e t.” C. V. N elson, cashier, F arm ers and M erchants Savings Bank, W aterville, Iowa: “W e have personally financed loans for some v eteran s because th ere is too m uch red tape involved in get tin g a G. I. loan. It tak es too m uch tim e and th e re ’s not enough inform a tion available. Most of our loans have been for ag ricu ltu ral purposes.” H. L. S tanley, presid en t F irst State Bank, L ynnville, Iowa: “We h av en ’t m ade any loans so far.” H. Lee H ouston, vice president and cashier, Colum bus Ju n ctio n State Bank, Colum bus Junction, Iowa: “We h av en ’t m ade any loans yet, b u t we have h eard talk of th em and have had several inq u iries.” H. S. A am oth, executive vice presi dent, L andm ands N ational Bank, Kimballton, Iowa: “So far we have made one loan and we have tw o applications th a t have been sent in b u t h av en ’t been retu rn ed . These are for farm and hom e financing.” C. C lialstrom , executive vice p resi dent and cashier, E v erly S tate Bank, E verly, Iowa: “We h av en ’t had any loans or applications from re tu rn in g servicem en.” George AY. AAToods, president, F irst N ational B ank in Council Bluffs, Coun cil Bluffs, Iowa: “Yes, we have made a few loans. Most b an k ers I have talked to have been having a little trouble gettin g applications through. Our loans have been m ainly to help these v eteran s get sta rte d in business.” E. L. AVeginan, executive vice p resi dent, Citizens Savings Bank, Anamosa, Iowa: “W e’ve had a few applications b u t h av en ’t m ade any loans yet. One reason I cam e here to th e convention w as to find out m ore about this loan setup.” Ah Spalding M iller, a ssistan t cashier, W aterloo Savings Bank, W aterloo, Iowa: “These applications take too m uch tim e. W e’ve had tw o loans ap proved. The process of p u ttin g the v e te ra n s’ applications th ro u g h doesn’t function rapidly enough as it takes anyw here from 10 days to th ree weeks. F or m en w an tin g to buy farm equip m ent now th a t’s entirely too long.” O U R 50th Y E A R •*1 4 -f~ 51 so the needed coppers could be p u t back in circulation. Mr. K nudson is still offering a nickel for five pennies. SOUTH Alcester Girl Married D A K O T A NEWS C. O. G O R D E R P r e s id e n t D eadw ood A c tin g S e c re ta ry L O IS J . H A L V O R S E N 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 ( I n the Service) Receive Ten Year Award T he South D akota B an k ers Associa tion has received a special ten-year aw ard from th e a g ric u ltu ra l com m is sion of th e A m erican B an k ers Asso ciation for exceptional services re n dered by c o u n try b anks in th a t state to th e ir farm custom ers. The h onor w as presen ted by C. W. Bailey, chairm an of th e com m ission and A.B.A. vice president, d u rin g a discussion of th e 1,000 point ra tin g program , w hich w as one of th e featu res of th e a n n u al threeday executive session of th e com m is sion held in Omaha, N ebraska, last m o n th to plan a co u n try b an k p rogram for 1946. C ounty and has since been w ith this in stitu tio n . Heads Bank Commission W. C. R em pfer, cashier of th e F irst N ational B ank of P ark sto n , South Da kota, w as nam ed ch airm an of th e Com m ission on C ountry B anks O perations of th e A m erican B ankers A ssociation a t th e com m ission’s first m eeting in Chicago. Mr. R em pfer served as chairm an of th e com m ission’s Com m ittee on Cost A nalysis for th e p ast tw o years, w hich com m ittee directed th e cost analysis pro gram in w hich m ore th a n 3,000 co u n try banks particip ated in th e past year. Increases Surplus H. E. McKee, vice p resid en t of th e N o rth w est S ecurity N ational B ank of Sioux Falls, South D akota, an d m a n ager of th e G regory, South Dakota, b ran ch an nounced th a t a t a m eeting of th e d irecto rs of th e N o rth w est Se cu rity N ational B ank th e y increased th e ir su rp lu s account from $600,000 to $700,000 p u ttin g an additional $100,000 in th e su rp lu s account. T he com m on stock rem ain s at $500,000 an d th e undivided profits and re sources a t $433,000 m aking a to tal capital stru c tu re of $1,633,000. T his w as done to fu rth e r stre n g th e n th e p e rm a n e n t capital stru c tu re of the bank. T his in stitu tio n has to tal assets of $36,000,000. Assumes Cashier Duties M axwell B ird w as chosen as cashier of th e B ank of U nion C ounty of E lk Point, South D akota, a t a recen t m eet ing of th e board of directors. He w ill succeed M artin K othe, w ho has as sum ed a position at th e b an k in C uster, South D akota, as m anager. Mr. B ird has had a n u m b er of y ears experience hav in g first been em ployed in th e U nion C ounty B ank of E lk P o in t and la te r in th e F irs t N ational B ank at Omaha, N ebraska. H e re tu rn e d here last y e a r accepting th e position as as sis ta n t cashier in th e B ank of U nion O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cla rence A . Potter C larence A. P o tter, cashier of the F irs t N ational B ank of Selby, South Dakota, died recen tly at St. L u k e’s hospital in A berdeen, South Dakota. H e succum bed sh o rtly afte r being b ro u g h t here from his hom e w here he had been strick en seriously ill. Mr. P o tte r w as 58 y ears old and had sp ent over 30 y ears in Selby. S urvivors include th e w idow and a daughter, Shirley. Injured When Horse Falls C. O. Gorder, m anager of th e Deadwood, South Dakota, b ran ch of the F irs t N ational B ank of th e Black Hills, suffered a broken leg October 28th w hile he w as riding horseback. The accident occurred n ear Plum a, South Dakota, w hen his horse becam e frig h t ened by a train , stum bled and fell th ro w in g G order u n d er th e horse. H is leg w as broken in tw o places, and he w as tak en to St. Jo sep h ’s hospital w here th e fractu res w ere reduced. Don't Save Those Pennies T he shortage of pennies in Leola, South Dakota, becam e so keen recently th a t C. E. K nudson, cashier of the Leola S tate B ank had to broadcast an appeal to th e citizens of th a t com m u n ity to please cash in th e ir pennies Miss L innea P eterson, em ployed for th e p ast y ear in th e State B ank of Al cester, South Dakota, w as m arried N ovem ber 6th to F ran cis L. G andrau. Mr. G andrau w as recently released from m ilitary service after th ree and one-half years. Killed in Accident Miss Leona K. Stoller, 19, an em ploye of th e A m erican State B ank of Y ankton, South Dakota, w as drow ned last m onth w hen th e car in w hich she w as riding w ith friends plunged into th e M issouri river. Sioux Falls News I EO NARD M A R TIN E K , w ho served L w ith th e arm ed forces in A frica and Italy, has resum ed his position as teller at th e N ational B ank of South D akota in Sioux Falls, after an absence of th ree and one-half years. T. N. H ayter, vice-president of th e F irs t N ational B ank and T ru st Co. of Sioux Falls w as renam ed chairm an of th e South D akota b ank activities d u r ing th e V ictory L oan drive ru n n in g th ro u g h D ecem ber 8. His appointm ent w as announced by th e New Y ork office of th e A m erican B an k ers’ Asso ciation. H aving an im p o rtan t p a rt in th e w ork of th e national drive o rgan ization, H ay ter coordinated th e n a tional association’s program w ith th a t of th e South D akota B an k ers’ Asso ciation, tre a su ry w ar finance officials and o th er active groups. The U nion Savings B ank in Sioux Falls, of w hich W. C. Duffy is p resi dent, has opened for business in its new location in th e C entral E lectric and Gas Co. building, 118 South M ain Ave. T em porary equipm ent and fu r n itu re is being used u n til conditions p erm it installatio n of fixtures in ac cordance w ith original specifications. The building’s en tran ce and fro n t are also tem porary, b u t officers said th a t w hen th e b ank is com pleted it w ill be “th e m ost m odern in th is section of th e co u n try .” The new v au lts are said to be protected “by th e h eaviest doors in th is area,” and th e lighting system is likew ise of a late design. T ran sfer of safes and safety deposit boxes and m ore th a n $5,000,000 of th e b a n k ’s re sources w as m ade u n d er protection and supervision of police and sheriff’s officers arm ed w ith m achine guns, Northwestern Banker December 1945 -• SOUTH rifles and sawed-off shotguns. The b an k had been located in th e C ataract hotel b uilding for m ore th a n two decades. C. A. C liristopherson, ch airm an of th e board of directors of th e U nion Savings B ank, Sioux Falls, has been nam ed sta te ch airm an of th e Sister K enny foundation drive, w hich has begun on a nation-w ide basis. He w as appointed by Bing Crosby, n atio n al ch airm an of th e organization w hich is seeking to raise $5,000,000 for use in the tre a tm e n t of in fan tile p aralysis victim s. DAKOTA N E WS W hen Sioux F alls lodge, Loyal O rder of Moose, made a gift to th e city fire d ep artm en t of a com bination resuscitator, in h alato r and aspirator, C hristopherson form ally m ade th e p resen tatio n in behalf of th e lodge. F ire Chief Carl E. Sw anson received th e $400 outfit at special cerem onies. Charles F. F alck has re tu rn e d to the N o rthw est Security N ational B ank in Sioux Falls, has been elected assistan t cashier by th e directors, and has been placed in charge of th e b a n k ’s branch at the Sioux Falls A rm y A ir Field. He left the bank in A ugust, 1940 to join • the arm y, in w hich he rose to ran k of m ajor. A t th a t tim e he held th e posi tion of teller. J. Oliver N ordby, m anager of th e arm y post b ran ch b ank for th e p ast two and one-half years, now succeeded by Falck, has re tu rn e d to th e m ain office to be in charge of th e in stallm en t loan departm ent. Ralph M. W atson, p resident of th e N orthw est S ecurity N ational Bank, Sioux Falls, attended a m eeting of th e N ebraska B an k ers’ A ssociation in Omaha last m onth. P. H. M cD ow ell, vice president and tru s t officer of th a t institu tio n , enjoyed a successful duck and goose h u n tin g expedition to the vicinity of P latte, South Dakota, in com pany w ith Brig. Gen. R obert F. Travis, form er com m anding officer of th e local arm y post, now stationed at Sioux City. Buys Investors' Syndicate A cquisition of th e m ajo rity of the com m on stock of In v e sto rs’ Syndicate, M innesota-founded in v estm en t com pany, by B ert C. Gamble, presid en t of Gamble Stores, Inc., w as announced by Don A. L oftus of W ashington, D. C., rep resen tin g a group of eastern stock holders. T he purchase included several large p riv ately ow ned blocks of stock. PR O BLEM S OF PEACE T HE great M iddle W est, so im portant in m aintaining the war production w hich helped to speed the day o f victory, is now concentrating upon the problem s resulting from our re version to a peace-tim e econom y. This business-minded bank, w hich assisted so many com panies in converting to war pro duction, now is aid in g businessm en to solve the financial aspects o f their problems o f reconversion. Correspondent banks are finding the American N ational well prepared to assist them in m eeting the changing requirements o f their custom ers during the reconversion period. AMERICAN NATIONAL BANK AIMD T R U S T OF COM PANY C H IC A G O LA S A L L E S T R E E AT W A S H I N G T O N Insurance Corporation Member Federal Deposit U R B U S I N E S S Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 T O HELP BUS NES S Gamble, in a brief statem ent, said, “F o r some tim e I have been personally in terested in In v e sto rs’ Syndicate from an in vestm ent standpoint. F o r the last seven y ears controlling stock in terest of In v esto rs’ Syndicate has been held by several different groups. I have p u r chased th e m ajo rity of th e common stock as a long-range investm ent, and m y in te re st in th e syndicate and p u r chase of its stock are en tirely personal affairs and are in no m an n er w hatso ever related to m y association w ith Gamble Stores, Inc., nor w ith any of m y o ther in terests.” Gamble Stores, Inc., and its affiliates operate approxim ately 4,000 retail stores and dealerships. Mr. Gamble is presid en t of Gamble Stores, Inc., M in neapolis, a d irector of W estern Auto Supply Com pany of M issouri, ch air m an of th e board of W estern A uto Sup ply Com pany of Los Angeles, and a director of th e M inneapolis and St. L ouis R ailw ay Company. In v esto rs’ Syndicate, one of the old est and larg est financial in stitu tio n s of its kind in th e U nited States, w ith assets u n d er its m anagem ent exceed ing $340,000,000, w as founded in M in neapolis in 1894. OETÎ 50th YEAR 53 the F arm ers Security B ank of W ash burn, N o rth Dakota, died at his hom e in M ercer recently of a h e a rt attack. Born in M innesota, he m oved to N orth D akota in 1909, first w orking at a b ank in K enm ore and th e n m oving to M ercer the follow ing year. NORTH DAKOTA A. C. I D S V 0 0 G P r e s id e n t G ra fto n NEWS Renews Charter C. C. W A T T A M S e c r e ta r y F a rg o ident has announced in letters to de positors. F. A. Foley, p resid en t of th e R olette T he b ank has discontinued accepting C ounty B ank of Rolla, N o rth D akota, deposits. It has deposits of $340,000. w as elected vice p resid en t of th e R easons for discontinuance, given n o rth w e st group of th e N o rth D akota by th e b an k m anagem ent, are: B ankers A ssociation, a t th e group 1. A ugust E. Shockm an, president m eeting held in M inot recently. F. E. of th e b ank and “in th e h a rn e ss” for S tew art of W illiston w as nam ed group 40 years, plans to retire. E lm er R. p resident; R. B. W ill, M inot, secretary Shockm an, vice president, has sold and tre a su re r. N am ed on th e state v arious holdings in th e B erlin com n o m in atin g com m ittee w as H a rry m u n ity and has m oved to Fargo, N orth G rant, p resid en t of th e U nion N ational Dakota. B ank of Minot. 2. Shortage of employes. 3. Lack of dem and for loans. Top Two Million Mark 4. Capital req u irem en ts large in p ro New Salem, N o rth D akota, now has a tw o m illion dollar b an k for th e first portion to population. T he B erlin F a rm e rs and M erchants tim e in th e h isto ry of th e tow n. T his S tate B ank for a tim e w as one of tw o b an k is th e S ecurity S tate B ank. b anks in B erlin, b u t ev entually took A t one tim e N ew Salem h ad th re e over th e old B erlin State Bank. On b anks and th e ir to tal assets did not Ju ly 30, 1930, th e B erlin F-M B ank also to tal th a t m uch m oney. T he S ecurity took over the S tate B ank a t G rand S tate B ank now has $2,057,054.24. In R apids. F. B. Sullivan, W orld W ar I deposits alone th e re is $2,001,054.24. v eteran, w ho had served four y ears as 1 cashier, of th e G rand R apids Bank, Roisum to First National th en w en t to th e B erlin F-M Bank, S. K. R oisum , w ell k now n in N o rth serving as cashier of th a t b ank for th e D akota financial circles, has joined th e last 15 years. executive staff of th e F irs t N ational Mr. Sullivan contem plates opening B ank in G rand F orks, N o rth D akota. an insurance agency an d exchange F re d R. O rth, president, m ade th e a n office at B erlin, in w hich he w ould nouncem ent. perform several of th e functions or R oisum has ju s t been discharged d in arily handled by a bank. from th e U. S. n av y a fte r 38 m o n th s’ service. P rio r to his enlistm en t, he Increase Capital o p erated th e L ivestock Credit Co., in T he N orth D akota b anking board G rand F ork s, and has m ade his hom e has g ran ted approval to th e Peoples th e re since 1940. S tate B ank of Velva, N o rth Dakota, B orn in E rsk in e, M innesota, Roisum to increase its capital stock from w as associated w ith b an k s in Gonvick $20,000 to $25,000. Mr. and Mrs. A. R. and Bagley, M innesota, and for seven K um m , officers of th e bank, are absorb y ears w as field re p re se n ta tiv e for th e ing th e additional stock. A t th e p res F ed eral In term ed iate C redit B ank of e n t tim e th e local b ank has deposits St. Paul. He is m a rrie d and has one to taling tw o and a half m illion dollars, son. larg est total deposits in th e h isto ry of Foley Vice President Berlin Bank Liquidates T he F a rm e rs and M erchants State B ank of B erlin (LaM oure county), N orth D akota, established ap p ro x i m ately 40 y e a rs ago, is v o lu n tarily liq u id atin g and w inding up its affairs, w ith com plete d iscontinuance legally req u ired by J a n u a ry 24, 1946, th e p res O U R 50th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis th e institu tio n . A nother in terestin g fact is th a t since beginning of th e w ar th e b an k has issued over a m illion dollars w o rth of w ar bonds to its cus tom ers. F. O . Freeburg F red erick O. F reeb u rg , 62, m anager of th e M ercer, N o rth D akota, b ran ch of The N o rth D akota S tate B anking B oard has approved th e application of th e McVille State B ank of McVille, N orth Dakota, for th e renew al of its corporate existence for a period of twenty-five y ears from D ecem ber 2, 1945, according to R. S. See, secretary of th e board. No changes in b ank titles, liquidations, consolidations or closing w ere rep o rted du rin g Novem ber. BANKS C H O O S E DIRECTO RS (C ontinued from page 14) Thom as J. Aron, president, Crete S tate Bank, Crete, N ebraska: “It has long been m y experience th a t th e b ank directors are th e energizing and m ain cog in th e ru n n in g of a bank. The directors are selected by th e stock holders, and although th ey repose con fidence in said m an agem ent th ey are responsible for its action. Often tim es a dollar m ark and n et w o rth is th o u g h t to be th e prim e requisite of anyone connected w ith a bank. H ow ever, we believe th a t th e directors of our bank should and do re p re se n t a cross-section of our com m unity. N aturally, they m u st have some financial n et w orth, be fru g al b u t also progressive. T hey m ust have th e ir h and on th e pulse of th e com m unity and also be far-sighted enough to an ticipate w h a t w ill be bene ficial for said com m unity and our b ank of tom orrow . “It seem s to me th a t our directors are in terested n ot only in th e ir own business b u t in our com m unity and civic life as well. F o r exam ple, one is extrem ely in terested in th e p re se r vation of w ild life and th e Boy Scout m ovem ent; a n o th er is extrem ely in terested in athletics, both in C rete high school and Doane college; an o th er is in terested in C ham ber of Com m erce activities and local building projects; an o th er is v itally in terested in ag ri cu ltu ral developm ent, especially in th e encouragem ent of th e use of b e tte r seeds and b e tte r livestock. T here is also a considerable variance in th e age of our directors, now confined betw een th irty -th ree and sixty-eight y ears of age, y et th ere is a com m on desire to ru n a good, sound, and profitable bank. W hen th ey sit dow n to a d irecto r’s m eeting it cannot help b u t produce desirable resu lts.” Northwestern Banker December Ï945 54 F o r 9 0 Y e a r s S o u n d B anking Service U N IT E D STA TES J\ fa H o n a l M E M B E R Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 F O I C J O U R 50th Y E A R 55 of 30 tho u san d dollars, a surplus of 10 thousand dollars and undivided profits of $2,500. NEBRASKA Omahans Move NEWS WM. B. H U G H ES S e c r e ta r y O m aha V. E . D O L PH E R P r e s id e n t D a v id C ity New Officers A t a recen t d irecto rs m eeting of the F a rm e rs B ank, N ebraska City, N ebras ka, th re e officers w ere elected to new posts and one new addition to th e staff announced. J. H. C atron and Jam es T. Shew ell w ere re-elected to th e ir respective positions as p resid en t and vice president. J. R. Stevenson, form er cashier and E d w in G ardner, fo rm er a ssista n t cash ier, w ere both elected vice presidents. M ark F u llried e goes from his old post of a ssista n t cashier to fill Mr. S teven so n ’s vacancy. E. R. Seyfer w as se lected as a ssista n t cashier. Wins G olf Tourney A t th e recen t so u th w est N ebraska golf to u rn a m e n t held a t McCook, N e b raska, th re e T ren to n , N ebraska, m en w on first, second and th ird places. F irs t place w in n e r w as B ert Shillington, cashier of th e S tate B ank of T re n ton. Promotion H e n ry G ram ann, Jr., vice p resid en t and cashier of th e Adam s S tate B ank of Adams, N ebraska, w ho is on leave w ith th e U. S. A rm y has been p ro m oted from th e ra n k of m ajo r to lieu te n a n t colonel. H e is statio n ed at F o rt R ichardson, Alaska. < Purchased Bank Stock In te re st in th e B ank of Brady, Brady, N ebraska, w as recen tly p u r chased by W. O. Collett, president, from th e F re d George heirs. W. O. Collett h aving 25 y ears of ban k in g ex perience and being w ith th e b an k 16 y ears as an executive officer w as elected presid en t of th e in stitu tio n in 1942, soon afte r th e death of Mr. George. R. R. G arner, form erly assist a n t cashier and w ith th e b ank for th e past 9 years, w as advanced to cashier. Lucile D art w ho has been w ith th e b ank for th e p ast 5 y ears w as advanced from bookkeeper to a ssistan t cashier. Retires Returns to M cCook F ollow ing th e re tire m e n t last m onth of Roy E. Cocklin as vice p resid en t of th e W au n eta F alls B ank of W auneta, N ebraska, controlling in te re st of th e b an k passed to W iley Green, cash ier, and Jo h n W. Green, president. Mr. G reen re tu rn e d to his old position of cashier a fte r receiving his discharge from th e navy. Mr. Cocklin w ill re m ain as a d irecto r of th e bank. H arold L arm on, w ho served as a captain in th e arm y, received his dis charge from th e service at H astings, N ebraska, recently and he and his wife are now m aking th e ir hom e in McCook, N ebraska, w here he is em ployed in th e F irs t N ational Bank. Boom Town W. E. Young, vice p resid en t of the Cozad State B an k of Cozad, N ebraska, rep o rts th a t Cozad is bidding to be the m ost “alive” to w n in N ebraska. Co zad’s record of new and proposed civic projects bears out his sta te m e n t for ► on the list of recent civic accom plish m ents is the M unicipal L ight P la n t valued at $275,000 w hich is com pletely paid for. W aiting for construction at presen t and w ith th e stock all paid up is a new three-story m odern hotel and a onestory, all m odern, 15-bed hospital. A V eteran s’ M em orial B uilding is also on th e list and subscriptions to this fund now total n early $20,000, only $5,000 sh o rt of th e req u ired am ount. Before th e to w n ’s citizens at p resen t is a hill w hich w ould provide for a m u nicipal a irp o rt and a sw im m ing pool. Cozad’s slogan is, “A Live Town Grows; A W eak Tow n Dies.” O U R 50th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L. F. Johnson and C. M. H itchm an, both of Omaha, recently purchased th e controlling in terest in th e Seven Val leys S tate Bank, of Callaway, N ebras ka, and are now in charge. T he stock holders of th e b ank w ill rem ain the sam e as in th e past, w ith th e exception of Mr. Johnson and Mr. H itchm an, and they are: W m. Schaper, of B roken Bow, Dr. R. D. B ryson, and th e M. Wiel estate in Lincoln, N ebraska. At a m eeting th e first of th e w eek th e stockholders elected E. R. Logan as cashier, and he w ill continue in th a t capacity for the present. Back at Scotia E lton Jess, form er em ploye of the State B ank of Scotia, N ebraska, before induction into the arm y, resum ed his w ork at the bank last m onth. Form New Bank The F irs t State B ank of Loomis, N e braska, w hich opened for business N ovem ber 5th replaced th e F irs t N a tional B ank th e re w hich w as liqui dated. J. P. Allen of Oxford, N ebraska, is p resid en t of th e new bank and his son, Jo h n P. Allen, Jr., is cashier. W. B. A braham son w ho w as cashier of th e F irs t N ational for 38 y ears joined th e new b ank as vice president. W. H. Sw artz retired after serving 38 y ears as p resid en t of the F irs t N ational. U nder th e new c h a rte r th e capital stock of th e F irs t S tate B ank is $42,500. The tra n sfe r of deposits from th e F irs t N ational am ounted to m ore th a n a m illion dollars. Moving to W ayne O. M. Jeffrey, p resident of th e Plainview State B ank of Plainview , N ebras ka, recently p u rchased controlling in te re st recently in the F irs t N ational B ank of W ayne, N ebraska, and w ill settle in W ayne aro u n d th e first of th e year. Officers of the Plainview bank will rem ain th e sam e u n d er th e su p er vision of Mr. Jeffrey and his son, Adon Jeffrey, cashier. Stuart Bank S tuart, N eb rask a’s new Tri-County B ank opened N ovem ber 16th. Officers of th e b an k are H. W. Galleher. president; P. E. McGuire, vice president; J. G. B rew ster, cashier. The b ank succeeds th e recentlyliquidated F irs t N ational B ank of S tuart, w hich w as headed by th e late D. A. Criss. It has a paid up capital Housing Troubles A fter he solves th e housing problem in K earney, N ebraska, Tom Russell w ill re tu rn to th e F o rt K earney N a tional B ank w here he w as em ployed before joining th e m ilitary service. He has recen tly been discharged from th e arm y. Northwestern Banker December 1945 56 Bank Lobby Remodeled Joins F.D .I.C . The B attle Creek State B ank of B at tle Creek, N ebraska, w as recently cer tified as a m em ber of th e F ederal De posit In su ran ce C orporation following exam ination of bank records by F ed eral exam iners. Lyman Gets Bank A fter 13 y ears Lym an, N ebraska, has a b ank again. T he F a rm e rs’ State B ank has been organized th ere w ith a capital stru c tu re of $32,500, replacing the L ym an Cooperative Credit Asso ciation w hich served th e city since 1934. O. M. H am m erlu n is president; T. H. E lquest, vice president, and Cor nell N ew m an, cashier. T he board of directors is composed of F re d Chalupa, George P. Johnson, and th e th ree bank officials. Assists Parents R obert W underlich is assisting his fa th e r and m other, W alter J. W under lich, p resid en t and Gladys W. W u nder lich, cashier in th e operation of the N ehaw ka B ank of N ehaw ka, N ebraska, following his discharge from th e arm y at F o rt L eavenw orth, K ansas, recently. Mr. W underlich w ill rem ain on the re serve officer list for th e du ratio n of the em ergency. # # N EBRASKA BANKERS MEET IN O M A H A T he N ation al B ank o f Commerce, L in c o ln , N e b ra s k a , h a s re c e n tly com pleted th e re m o d e lin g of its lobby, re m o v in g th e h ig h m e ta l fix tu re s a n d in s ta llin g th e new lo w -ty p e c o u n te rs. T he to p p ic tu re show s th e lo b b y b e fo re th e ch an g e w as m ade, a n d th e low er p ic tu re illu s tr a te s how th e lo b b y a p p e a rs now. The c o u n te rs a re w a ln u t, a n d p ro v id e p lac es fo r e ig h t te lle rs. T he c o u n te rs a n d f a c ilitie s w ere d e sig n ed by B yron Dunn, p re sid e n t o f th e b a n k , a n d a re th e la s t w o rd in efficiency a n d speed in se rv in g cu sto m ers. T he N a tio n a l B a n k of Com m erce w ill h a v e its official o p en in g in its re m o d e le d q u a rte rs e a rly in D ecem ber. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 (C ontinued from page 18) veterans, C hester Brow n, loan g u ar an ty officer for th e V eterans A dm inis tratio n in N ebraska, said 233 loans to veteran s have already been m ade and an o th er 206 certificates of eligibility for loans are now in the hands of veterans. C hester R. Davis, vice presid en t Chi cago T itle and T ru st Co., and ch air m an of th e v eteran s com m ittee of the A m erican B ankers A ssociation, stated th a t in a survey of over th ree thousand O U R 5 0 th YEAR 57 W E SERVE ALL WHO IN A N Y W A Y SERVE THE LIVE STOCK INDUSTRY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 • banks it took an average of 28 d ays,to get an eligibility certificate and th e loan g u arantee. A fter ad jo u rn m en t of business m eet ings th e re w as a social h o u r in the Black M irror Room follow ed by a b an quet and floor show in th e ballroom . Billy H ughes, com pleting his last convention as secretary of th e Associa tion, received a trem en d o u s ovation at the banquet, and w as p resen ted w ith a beau tifu l w ristw a tc h suitably en graved. T hree h u n d re d and fifty ladies of th e N ebraska B ankers A ssociation w ere delightfully e n te rta in e d a t luncheon in th e Black M irror Room. Table dec orations w ere a ttra c tiv e ly arran g ed a u tu m n foliage. M em bers of th e com m ittee in charge of th e luncheon w ere Mrs. A rth u r L. Coad (P ack ers N a tional), chairm an; Mrs. John L au ritzen NEBRASKA NE WS (F irs t N ational); Mrs. David F. Davis (O m aha N ational); Mrs. A ustin L. V ickery (U nited States N ational); Mrs. W ade R. M artin (Live Stock N ational); Mrs. L. H. E a rh a rt; Mrs. R. H. Hall (N orth Side); Mrs. K enneth G. H arvey (Douglas C ounty), and Mrs. Clarence F. W itt (South Omaha Savings). P ro m in en t b a n k e r’s ladies in tro duced to th e g ath erin g w ere Mrs. E d g ar M cBride, w ife of th e re tirin g p resi d ent of th e N ebraska B ankers Associa tion; Mrs. V ictor E. Dolpher, w ife of the new ly elected president; Mrs. Carl G. Sw anson, wife of th e new ly ap pointed secretary of th e N ebraska B an k ers Association; Miss M ary Mc Bride, sister of th e re tirin g president, and Mrs. H erb ert B ushnell, w ife of P resid en t B ushnell of th e U nited S tates N ational B ank and p resid en t of th e Om aha C learinghouse A ssociation. ' Z l Z r' moreeHicient^ new P e a c e T m e 1 7 b l ^ * >he o p p o r t u n it y . P oblem s a nd * for “P-to-the m" ’ form ation CITY NATIONAL 18th & G RAND K A N S A S CITY, MO. BANK B° " d h ’Keutàeu & TRUST M ember Federal Deposit Insurance Corp. 'pcuMX'Ute Semé COMPANY Resources O ver $100,000,000.00 • A fter enjoying a delectable luncheon, the ladies holding lucky nu m b ers w ere aw arded m any w ell-chosen door prizes. R egistration at th e convention w as upw ard of 1,100, alm ost equaling the record established last year. G. F. Foley, vice presid en t of th e D enver N ational Bank, w as in a t tendance at th e convention and busy greetin g his m any friends. Jo h n V. Haas, handsom e a ssistan t cashier of th e N o rth ern T ru st Com p any of Chicago, w as on h an d ren ew ing acquaintance w ith his m any friends afte r having been on a leave of absence w ith th e arm ed forces. Two Veterans Return T he bond d ep artm en t of City N a tional B ank and T ru st Co., of K ansas City, M issouri, has increased its selling staff by th e re tu rn of tw o of its form er m em bers from th e arm y. The tw o w ho have resum ed th e ir positions u n d er F. D. F arrell, vice p resid en t in charge of th e bond d ep art m ent, are F irs t L ieu ten an ts H arold W aeckerle and M errill M orong both of th e signal corps. L ieu ten an t W aeckerle had tw o years in City N ational’s bond d ep artm en t before his four y ears in the service. He served w ith a ra d a r battalion in the E u ro p ean th e a te r after tw o y ears in th is country. He saw du ty in E ng land, G erm any and France. L ieu ten an t M orong w as th ree years in service, half of w hich w as in N or m andy, n o rth e rn F rance, and th e R hineland. He had been w ith City N ational 13 y ears before his enlist m ent. Irony W hen w ar is on and strife is high, God and th e soldier is all th e cry. W hen w ar is o’er and peace is w rought, God and th e soldier are soon forgot. r&rTOOTLE-LACY “ THE OFFICERS OF THE TOOTLE-LACY N ATIO N AL BANK WELCOME EVERY OPPORTUNITY TO DISCUSS WITH THEIR BANKER FRIENDS A N Y CORRESPONDENT PROBLEMS IN W HICH THEY M AY BE INTERESTED.” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December Î9b5 O UR 5 0 th YEAR 59 tim e till he had finished. T hen he reached for his w atch. It w asn ’t there. L a te r w hen he reached for a tip for th e hatcheck girl, th ere w as his w atch in his pocket. He h u rrie d back to tell th e convention. B ut a n o th er speaker had th e floor. Mr. Joh n so n had to w ait till th e session w as over to rep o rt th a t he had found his w atch. R obert L. C heshire is th e new sec re ta ry of th e P roduction C redit Cor poration of Omaha. He succeeds H. W. Anway, resigned. Born on an Iowa farm and a grad u ate of th e U niversity of Iowa, he has been w ith th e F a rm Credit A d m inistration since 1933. F o r the last six years, he has been a tto rn ey for the PCC. He w ill re ta in th a t post. F T E R 42 m o n th s in th e arm y, Col. J. F ran cis M cD erm ott has re tu rn e d to his desk a t th e F irs t N a tio n al B ank of Omaha, w h ere he is a vice p resident. Colonel M cD erm ott has been finance officer for th e S eventh Service Com m and, w ith h e a d q u a rte rs a t Omaha. H ow ever, he h as h ad tw o overseas assig n m en ts—one in E u ro p e and th e o th er in China. A t a d in n e r recen tly in Om aha h o n oring th e com m ander and p ast com m an d ers of Lee F o rb y Camp No. 1, Spanish-A m erican W ar V eteran s and A uxiliary, at th e O m aha Legion Club, Colonel M cD erm ott spoke on his over seas m issions. He w as scheduled to m ake V ictory L oan drive talk s outsta te d u rin g th e la tte r p a rt of N ovem ber. A division m anager of th e N ational As sociation of Credit Men, Chicago, also w as a speaker. E nsign and Mrs. G. V ernon O rr re cently visited Mr. and Mrs. C harles I). Saunders in Omaha. Mrs. O rr is the fo rm er Jo an P eak of Des Moines. She recen tly joined h e r husband at San M arino, California, afte r he re tu rn e d from th e Pacific. The officer has been on term in al leave. He and his wife w ere on th e ir w ay to Des Moines to v isit Mrs. O rr’s p arents, Mr. and Mrs. G. A. Peak. W allace K eenan, tru s t officer of the Live Stock N ational B ank of Omaha, headed V ictory L oan drive activities for th e Young B usiness M en’s Asso ciation of Omaha. Mr. K eenan’s com m ittee called on one h u n d red Omaha in d u strial firm s to get em ploye pledges. R ay R. R idge, vice p resid en t of the Om aha N ational B ank, addressed Oma h a cred it m en recen tly a t a p ro g ram on w hich C larence L. K irkland, m anager of Om aha In d u stries, Inc., also spoke. Mr. Ridge spoke for th e b ankers. He said b a n k e rs are m ore openm inded now re g ard in g credit and th e y nev er tu r n dow n anybody ask in g a loan if th e y can help it. E. N. Moran, Philip M. Johnson, atto rn e y for the F ed eral L and B ank of Omaha, placed his gold w atch on th e sp eak er’s stand. He d idn’t w an t to go over his 20m in ute lim it in a speech to th e Ne b ra sk a T itle A ssociation at Omaha. H e got so in terested in his subject, how ever, th a t he d idn’t th in k of the NATIONAL BANK M IL T O N TO O TLE , JR. P R E S ID E N T G R A H A M G. LACY V IC E P R E S ID E N T P R E S ID E N T E . H . SC H O PP F R E D T. B U R R I ASST. C A S H IE R ASST. C A S H IE R C harles D. Saunders, vice p resident of th e F irst N ational B ank of Omaha and new presid en t of th e Omaha Cham ber of Commerce, rep resen ted N ebraska carriers freig h t shippers and receivers at a H ouse com m ittee h e a r ing recen tly on th e B ulw inkle bill. It w ould rem ove rate-m aking procedure from provisions of th e S herm an AntiT ru st Act. Mr. S aunders subm itted testim ony in favor of th e bill. R etu rn in g from W ashington, Mr. S aunders visited St. Louis and other cities to in terv iew business executives on th e possibility of establishing branches in Omaha. M iss H elen M illard, d au g h ter of the late E zra M illard, one of th e founders of th e Om aha N ational Bank, left an estate valued a t $146,345. She died F e b ru a ry 10, 1945, at th e age of 70. The estate appraisal w as filed recently ST. JOSEPH, MO. R. E . W ALES M IL T O N TO O TLE, III V IC E Mr. and Mrs. R obert F . Bender and th e ir son, R obert, Jr., have m oved into a new hom e at 1406 South Seventyeig h th S treet at Omaha. Mr. Bender, a m ajor, received a discharge recently after tw o years of service in Italy. He is a son of Mr. and Mrs. F ra n k J. B en der. M ajor B ender’s w ife is a d au g h ter of Mrs. W illiam C. R am sey of Omaha. C A S H IE R E 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 L. C R U M E ASST. C A S H IE R \ OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker December Í9Í5 60 • NEBRASKA in the county cou rt at Omaha. In h er will, she bequeathed $5,000 to each of tw o nephew s, A lfred M illard and H ugh E. M illard. The rem ain d er of th e estate w as to be sh ared by nieces and nephew s: Mrs. A nn Gifford Forbes, Mrs. M ary Gifford von Kaesborg, M ilton Rogers, M illard H untingto n Rogers, and Mrs. H elen Rogers W ym an. Sidney W. Sm ith, 70, a tto rn e y in O m aha for 45 y ears and a d irecto r of the Om aha Loan and B uilding Asso ciation, died recently. In 1928, he w as presid en t of the T ax p ay ers’ R esearch Association. A brother-in-law is Jo u e tt Shouse of W ashington, fo rm er ch a ir m an of th e executive com m ittee of th e D em ocratic N ational Com m ittee. O F F IC E R S He w as a p ast presid en t of the Ne b rask a E lks A ssociation and p ast ex alted ru le r of th e Omaha E lk s Lodge. He w as also active in M asonic circles, including K nights Tem plar. W. B. M illard, Jr., vice-president of th e Om aha N ational B ank and recently discharged from th e arm y w ith th e r a t ing of lieutenant-colonel, w as nam ed ch airm an of an Omaha C ham ber of Com merce com m ittee to receive and com pile inform ation on sites for the proposed new V eteran s’ H ospital in the Omaha area. Also on th e com m it tee is W allace E. Spear, tru s t officer of th e F irs t N ational B ank of Omaha and chairm an of th e C ham ber’s M ilitary Affairs Com m ittee. SERVING YOUR NEEDS FR A Z E R L. FORD P r e s id e n t J . A . G R E E N F IE L D V ice P r e s id e n t HARRY H . M OHLER V ice P r e s id e n t th o s. j . NE WS McCu l l o u g h C a s h ie r M. E . B L A N C H A R D A s s is ta n t C a s h ie r And the needs of livestoekmen in this territory is our first consider ation, always. If we can assist you on your excess loans in taking care of your customers’ demands, please contact us. L O U IS J . K O M E R A s s is ta n t C a s h ie r • The first grandchild for A lv in E. Johnson, presid en t of the Live Stock N ational B ank of Omaha, arriv ed last m onth w hen a girl w as born to his daughter, Mrs. Philip H. Olson. The couple reside in Omaha and at the p resen t tim e Mr. Olson is a stu d en t at the U n iversity of Omaha. Mr. and Mrs. D ale Clark w ere hosts last m onth to th e ir daughter, Mrs. Jo h n Schirding, th e form er Jessie Clark, and th e la tte r’s three-year-old daughter, Cathie. Mr. Clark is p resi d en t of th e Omaha N ational Bank. The v isito rs cam e from P etersburg, 111., w here th e y have m ade th e ir hom e w hile L ieu ten an t Schirding serves w ith th e M ilitary G overnm ent in N iesbach, G erm any. T hey rem ained at the Clark hom e u n til N ovem ber 17. Mrs. Jo h n F. Davis and h er children, Carol and Tommy, left Omaha N ovem ber 7 for San Francisco to join L ieu te n a n t (j.g.) Davis, USN, stationed th ere w ith the T w elfth N aval D istrict. He is on leave from his duties w ith the F irs t N ational B ank of Omaha. His fath er is T. L. Davis, presid en t of the bank. The hom e of L ieu ten an t and Mrs. Davis in Loveland, w estern sub u rb an residential area, w o n ’t be v a cant, how ever. Mr. and Mrs. R ichard V. Scott have already m oved in. Mr. Scott recen tly w as discharged after service as a lieutenant-com m ander in the navy. His wife is th e form er Alice Foye of Omaha. The N ebraska R ailw ay C om m ission First Si. Joseph STOC K Y A R D S B A N K S o u th S t. J o se p h , Mo. “ O nly B ank in the Y ards” Member Federal Deposit Insurance Corporation recently authorized th e N ebraska Pow er Com pany of Omaha to re tire its p referred stock. The order w as effective im m ediately, b u t th e com pany w as aw aiting a ru l ing by th e F ed eral P ow er Commission before proceeding. T his ru lin g w as delayed. The FPC held a two-week h earin g on the m a tte r in Om aha d u rin g A ugust. Jo h n B. D aw son of New York, a tto r ney for N ebraska Pow er, said th a t if th e FPC issued a favorable order be fore N ovem ber 1, th e stock could be D u i you know th a t ad option o f o u r Cash L e tte r Scarborough &> Company insurance enables you to dispense with detailed Cash L e tte r transcripts and keep only a duplicate add in g m achine tape? A s k us for details. Insurance Counselors to B a n ks FIRST NA/TIONAL Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A N K BUILD IN G December 19^5 • CHICAGO 3, ILLINOIS • STATE 4 3 2 5 O UR 5 0 th YEAR 61 * called for re tire m e n t D ecem ber 1, th e q u a rte rly dividend date. The com pany’s o u tstan d in g p re fe rre d stock h as a p ar value of $7,452,300. To re tire th e stock before its due date, th e com pany m u st pay a 10 p er cent prem ium , am o u n tin g to $745,230. T otal p ay m en t to stockholders, therefo re, w ould be $8,197,530. NEBRASKA NE WS • the eighth w ar loan, designated as the V ictory Loan. The quota w as set for $1,664,000 in E bonds and $1,272,000 in individual purchases. B anking service is re tu rn in g slowly to m any N ebraska tow ns. So far th is y ear seven state banks have been ch artered by the State De Good P rospects “T hey tell me y o u r sp in ster au n t died quite happily.” “Yes—som ebody told h er m arriages w ere m ade in heaven.” partm ent of B anking. In the four y ears p rio r to 1945 th ere w ere 20, J. F. P eters, director of the d ep artm en t said. Of th e seven ch artered and opened th is year, tw o have replaced co-opera tive credit associations, w hich con v erted into banks. T hree followed im m ediately or sh o rt ly afte r th e liquidation of an old bank. T hree state banks v o lu n tarily liquid ated, paid all depositors in full and w ere not replaced. H EA LTH Y advance in business w as revealed in th e re p o rt of L incoln b an k clearings, m ade by the clearinghouse association, w ith total O ctober clearings a t $19,133,997, as com pared w ith $17,800,572 for S eptem ber, and $16,478,500 for O ctober of 1944. F o r th e first 10 m o n th s of 1945, clear ings w ere $185,917,668, or $10,773,725 m ore th a n th e clearings of th e sam e period in 1944, w hich to taled $175,143,943. A H en ry P oth ast, 75, w ell-know n P rairie Home banker, died recently at his home, follow ing several m onths illness. A fter com ing to Lincoln 37 y ears ago, he w as for several y ears connected w ith th e V an Sickle Glass and P ain t Company. He th en becam e presid en t of th e b ank a t P ra irie Home, to w hich he com m uted w hile living in Lincoln. He sold th e b an k several years ago. # # BANKS P u b l ic NATIONAL Ba n k Bought and Sold Confidentially and with becoming dignity BANK EMPLOYEES PLACED. 40 Years Satisfactory Service THE CH A RLES E. W ALTERS CO. OM AHA. N EB R A SK A C h ristm as savings clubs in L incoln B an ks w ill be released to m ore th a n 1,600 people th is y e a r w ith ap p ro x i m ately $115,000 to be sp en t in th e holiday period. Only one b ank rep o rted an increase in th e n u m b er p articip atin g in th e savings clubs w ith a slig h tly h ig h er to tal th a n last y ear. Some b an k s had discontinued th e plan in th e p ast sev eral years, w hile th e rem ain d er show ed a slig h t decrease in both th e to tal am o u n t in savings and th e n u m b er of people tak in g part. T. B. Strain, p resid en t of th e Con tin e n ta l N ational Bank, again served as co u n ty ch airm an for th e L an caster w a r finance com m ittee and directed Y O U R ST A TE 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. DAVENPORT & CO. F or quick, efficient c o rre s p o n d e n t se rv ic e in Lincoln, w e in v ite your b u s in e s s to th is bank. (ONTINENTAL (s |a TIONAL B ank m L IN C O L N Member Federal Deposit Insurance Corporation OM AHA O U R 50th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker December 19b5 62 U M I f © l i f t f *Î Wflfi f For the convenience of our correspondent banks H ere is th e tra n s it se rv ic e y o u h a v e b e e n w a itin g for. Now, effective sin c e N o v e m b e r 26, 1945, y o u m a y g re a tly e x p e d ite th e h a n d lin g of y o u r c a s h le tte rs one d a y faster w ith o u r c o n tin u o u s 24 h o u r tra n s it serv ice . Y our item s re c e iv e d b y o u r b a n k in O m a h a a t n ig h t a r e se n t out th e s a m e n ig h t. No d e la y . No a d d itio n a l cost. Yet a d a y is g a in e d on all transit operations. O u r 24 h o u r tra n s it d e p a rtm e n t h a s b e e n e s ta b lish e d a s p a rt of o u r p o s tw a r p la n to se rv e y o u e v e n b e tte r a n d w ith com plete ro u n d -th e-clo ck b a n k in g facilities. LIVE STOCK NATIONAL BANK OMAHA 7 , NEBRASKA A lvin E. Jo h n so n , P re sid e n t T H E B A N K 0 F F R I E N D L Y Á S E R V I C E M em b e r of F e d e r a l R e s e rv e S y ste 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 r a tio n Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 O UR 5 0 th YEAR 63 IO W A F. L. SA W Y E R S P r e s id e n t C e n te rv ille Receive Bond Credit N EW S FRAN K W A RN ER S e c r e ta r y D es M oines Bank Women Meet Polk county, Iowa, V ictory L oan F orty-eight w om en em ployes from drive w ill be credited w ith $164,000 of eight Iow a B renton banks, located in th e M ilw aukee R oad’s p u rch ase of Dallas Center, Adel, P erry , Jefferson, g o v ern m en t securities. E m m etsburg, G rinnell, V inton, and The road w ill in v est $22,500,000, and Indianola, convened in Des Moines has a rran g ed as it did d u rin g th e p re recently for th e ir an n u al m eeting. vious loan drives for every county in T heir en te rta in m e n t included a w hich it o perates in 12 states to p a r buffet supper at the hom e of Mr. and ticip ate in its huge purchase. Mrs. W. H. B renton followed by a Iow a is allotted $3,549,000 to be dis th e a tre p a rty at the Shrine A udito trib u te d am ong th e counties th e road rium . serves. Group discussions w ere held on H. A. S candrett, tru ste e of th e M il topics concerning bank operation. w aukee Road, in com m enting on th e These discussions w ere led by m en in purchase, said th a t in addition to th e B renton organization: C. S. Jo h n assistin g th e U nited S tates in m eeting son, F irs t N ational Bank, P erry; O. D. its p o stw ar obligations and co n trib E llsw orth, Dallas County State Bank, u tin g to th e success of th e V ictory Adel; R. S. Kinsey, Pow eshiek C ounty L oan drive, th e in v estm en t likew ise N ational Bank, G rinnell, and W. F. will be advantageous to th e railroad. Zunkel, C entral Savings Bank, E m m etsburg. Iowa Falls Bank Remodels The b ars are dow n a t th e Iow a Falls S tate Bank. P a tro n s and tellers can now look each o th er in th e eye as th ey conduct th e ir business. T he rem oval of the high m etal ra il ings gives an effect of increased spa ciousness to th e lobby and is b u t th e first step in rem odelling and redeco ra tin g p lanned by A. C. T ho rn b u rg , b an k president. By th e close of th is y e a r it is ex pected th a t p ain tin g and decorating w ill be com pleted, including th e in sta l lation of m odern fluorescent lighting fixtures. Changes Completed The Postville State Bank, Postville, Iowa, has com pleted rem odeling of its b anking offices. The im provem ents include rearran g em en t of the b an k ing room, installation of m odern fix tu res, safe deposit booths, acoustic posting room, fluorescent lighting and decorating. C. F. Meier, president, says the bank now has m odern q u a r te rs suitable for th e ir p resen t and fu tu re needs. O ther officers of the bank are A. L. Meier, vice president; W. A. K neeland, cashier; B ernice A. Schneider, assistan t cashier, and Roy Olesen, a ssistan t cashier, on leave w ith th e arm ed forces. Resumes Duties F. E. B reekner re tu rn e d to his duties as cashier of th e A m erican N ational Bank, A rlington, Iowa, th e first of this m onth follow ing his discharge from the navy a fter th irty m onths service. Samuel James, Jr. F u n eral services w ere held recently for Sam uel Jam es, Jr., at his hom e in Springville, Iowa. Mr. Jam es w as cashier of th e E xchange State B ank for 44 years, re tirin g in 1943 and w as a p ast p resid en t of th e Linn C ounty B ankers Association. He is survived by his wife, a son, Clarence D. Jam es, Des Moines, and a daughter, Mrs. J. A. Thom pson of Eagle Grove, Iowa. Cresco Girl Marries M argaret L ein h ard of Cresco, Iowa, recently becam e th e bride of Joe R ouchka of Lourdes, Iowa. Before h er m arriage she w as em ployed in th e Cresco U nion Savings Bank. Elected Cash ier á Carl M. E v an s w as elected cashier of th e Citizens S tate B ank, Oakland, Iowa, a t a m eeting last m o n th of the board of directors. He w as recen tly discharged from th e a rm y a fte r 32 m o n th s service, 24 of w hich w ere spen t in G reat B ritain, F rance, Belgium , H ol land and G erm any. H is wife, Mabel E vans, w ho has been a ssista n t cashier in his absence, has resigned. D elm ar F. B usse has been acting as cashier and vice p re si d ent and will continue in th e la tte r position. O UR 5 0 th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A T T H E IO W A C O N V E N T IO N — H on. R o b e rt Blue, g o v e rn o r of Io w a ; c e n te r, S. R. T orgeson, v ice p re s id e n t F a rm e rs & M e rc h a n ts S ta te B a n k , L a k e M ills; a n d Sen. A lb e n W . B a rk le y o f K e n tu c k y , b a n q u e t sp e a k er. Northwestern Banker December 1945 64 Tax School Meets The th ird an n u al F ed eral Incom e T ax School conducted th re e m eetings in Iowa d uring N ovem ber w ith twoday sessions a t W aterloo, Iowa S tate College at Ames and Denison. The schools are planned to assist farm ers, bankers, businessm en and realto rs in acquainting them selves w ith details of incom e tax rep o rts and laws. F ra n k J. B laser of th e Des Moines In te rn a l R evenue office w as principal speaker and in stru c to r at all th e m eetings. COMPLETE SERVICE B anks a n d th e ir c u sto m e rs w ith b u s in e s s in th e Sioux C ity a r e a a r e in v ite d to u se th e c o rre s p o n d e n t s e rv ices of this b a n k . W h e th e r it is a n u p -to w n item , a live stock item or a g ra in a n d h a y tra n s a c tio n , w e c a n h a n d le it p ro m p tly a n d efficiently h e re a t th e "F irst'' in Sioux City. Heads Committee The A m erican B ankers A ssociation’s ag ricu ltu ral com m ission nam ed W ar ren G arst, Jefferson, Iowa, to head its com m ittee on y o u th activities, at th e recent m eeting in Omaha. Earl L. Yocum A. G. Sam, J. P. Hainer, V ice President Fritz Fritzson, Vice Pres, and Cashier J. T. Grant, Assistant Cashier E arl L. Yocum, form er presid en t of th e F arm ers N ational B ank of A urelia, Iowa, died last m onth in Galva, Illi nois. Mr. Yocum w as 65 years old. He w as th e son of O. E. Yocum, pioneer A urelia b an k er w ho w as also president of th e F a rm e rs N ational Bank. President J. R. Graning, Assistant Cashier E. A. Johnson, Assistant Cashier W. F. Cook, Auditor Bank Changes Name * * * * / n S / o u x (7 /fif ★ * ONE HUSKY SEAL • BankersTension Flap • • • T ###** Envelopes seal easily and stay sealed even when stuffed to capacity— the wide, high shouldered flap has a gum strip V /s" wide, sealing to the extreme corners. Use them for important and bulky mail. #*** TENSION KNOWS HOW Tension Envelope Corp. BERKOWITZ ENVELOPE CO. 1912 Grand A v en u e Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Phone 4-4126 December 19^5 D es M oines 14, Iow a * Effective J a n u a ry 2, 1946, th e nam e of the C entral Savings B ank and T rust Com pany b ranch in M allard, Iowa, will be officially changed to th e Palo Alto County State Bank, according to an announcem ent by W illiam Zunkel, executive vice president. T he p resent nam e has been in effect since organi zation of th e ban k in 1929 and is now being changed in the in te re st of elim in atin g confusion. O ther officers of th e bank are: W. H. B renton, president; George C. Kelly, vice president; Paul M. Shain, cashier; W illiam J. D egnan, a ssistan t cashier and m anager of the b an k in M allard. Indianola Banker Dies W illiam B uxton, Jr., ch airm an of the board of directors and form er p resi den t of th e Peoples T ru s t an d Savings Bank, Indianola, Iowa, died recently at th e Indianola hospital following a cerebral hem orrhage. Mr. B uxton w as presid en t of th e b an k un til Decem ber, 1944, w hen his son, W illiam Buxton, III, th e n in th e navy, w as elected to th a t position be cause of his fa th e r’s failing health, and has since been released from the navy. Mr. B uxton w as in th e b anking busi ness for 52 years. H e w as bo rn on a farm n ear Carlisle, Iowa, in 1867. OUR 50th YEAR 65 7 Years o f 7 Specialized Experience ★ ★ ★ ★ ★ ★ ^T ^H IS BA N K has been closely identified w ith the live stock industry in Chicago for m ore than three-quarters o f a century. We k now the im portance o f speedy tran sm is sion o f proceeds o f live stock sales and for years have had these credits in the hands o f M idw est bankers the next day. T his is only one o f our many services used by bankers th ro u g h o u t the M iddle West. ATAe\ LIVE STOCK ^Aa/ioita/ BANK c(d / i ESTA BLISH ED 1868 U N IO N STOCK YARDS D a v id H . R e im e rs , P r e s id e n t Member Federal Deposit Insurance Corporation OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker December 1945 66 He is survived by his wife and th ree children, Mrs. R aym ond Sayre, Ackw orth, Iowa; W illiam Buxton, III, and Mrs. Jo h n Scott, E vanston, Illinois. Capital Increased Jefferson Memorial, which stands on the site o f the main entrance to the World’s Fair of 1904 in Forest Park, contains a remarkable collection of early St. Louis records, Jefferson manuscripts, and other collections of great historical value. t. Louis is an increasingly important in d u stria l center. Use the fa c ilit ie s of St. Louis 7 largest bank when you need fin an cial service in this a r e a . A t a recen t stockholders m eeting of th e H ayesville Savings Bank, Hayesville, Iowa, stockholders voted to in crease capital of th e b ank from $25,000 to $50,000. Officers of th e b an k include B ert Fischer, president; E lm er H. Mertz, vice president, and C. J. M ertz, cashier. D irectors are A. D. H art, Jacob M ertz and J. E. Ray. Silvalona B ogard and B etty M cCullough are bookkeepers. A n office at Delta, Iowa, w hich w as established in 1935, is m anaged by Roy E. Sim pkins w ho is assisted by G erald Fow ler. R esources of th e ban k now total m ore th a n tw o m illion dollars. Everet C . Platt E v e re t C. P latt, 72, presid en t of th e form er C itizens S tate B ank at E agle Grove, Iowa, and em ployed the p a st few y ears in a Pekin, Illinois, bank, died recently in Peoria, Illinois. Elect New Officers H. G. H aug w as elected president of th e C itizens State Savings Bank, Spillville, Iowa, a t a m eeting of th e stockholders. O thers elected w ere C. J. A ndera, vice president; Roy V. Novak, cashier; and H aug, A ndera, Novak, and Jo h n J. Ju n k o and F. .L M arek, directors. Grinnell Girl W eds N aom i B rooks and S ergeant Eldon G erard w ere m arried in G rinnell, Iowa, recently. Before h e r m arriage to Sgt. G erard, Mrs. G erard w as em ployed by th e G rinnell State B ank for th re e years, one of w hich w as spent in th e Malcolm b ran ch office. Deposits Top Million TH E C O V T I M 'M I L BANK & T R U ST COMPANY OF JVEtV YOR T he G raettin g er State Bank, Graettinger, Iowa, announces th a t its de posits have passed th e m illion dollar m ark and now total m ore th a n $1,150,000 w ith a to tal of $77,000 in capital, su rp lu s and undivided profits. In its 11 y ears of operation, deposits in th e bank have steadily been on th e increase. Officials of th e b an k include: C. A. Je n sen, president; M ax B aum gartner, vice president; H. A. E lsenbast, cashier, and M ary McManus, a ssistan t cashier. Tenth Anniversary MEMBER O F TH E FEDERAL DEPOSIT INSU RAN CE CO RPO RA TIO N Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 1945 Officers and directors of th e W apello State B ank of W apello, Iowa, com m em orated th e te n th a n n iv e rsa ry of OUR 50th YEAR 67 operatio n recen tly w ith an open house celebration at th e b an k atten d ed by 625 persons. M essages of co n g ratu la tion w ere sen t by telephone and tele g ra p h from all over Iow a and from b an k s in Chicago an d New York. M any bouquets of flowers also w ere received b y b an k officials d u rin g th e day. ★ ★ ★ ★ ★ HEADQUARTERS FOR NORTHEASTERN IOWA BANKERS New Bank at Ainsworth The A insw orth S tate B an k officially opened for business S aturday, N ovem b e r 24th, a fte r holding open house th e previous n ig h t for resid en ts of A ins w orth, Iowa. C. M. Spessard is p re s ident of th e new b an k w hich occupies offices p reviously used by an o th er A in sw o rth bank. O ther officers of th e b a n k are: T. A. F len n er, vice president; R ay W hitehead, cashier, and M ary G ardner, bookkeeper. Mr. W hitehead h as been an a ssista n t cashier a t th e N ational B ank of W ashington, Iowa, u n til his resig n atio n to join th e new ly form ed in stitu tio n . The com bined capital and su rp lu s of th e A in sw o rth b an k total $45,000. This bank, with the a d v a n ta g e s of quick, efficient serv ices a n d com p lete facilities, is the lo g ica l c h a n n el for your N ortheastern Iow a bu sin ess. William F. Tripp W illiam F. T ripp, 89, w ho re tire d last y e a r as p resid en t of th e K ent S tate Savings B ank of K ent, Iowa, a fte r 37 y ears of service, died recen tly at his hom e in K ent. He had been a leading citizen of th a t com m unity in connection w ith his ban k in g in terests. O . H. Koch Honored O. H. Koch, fo rm er p resid en t of St. A nsgar Citizens State B ank of St. Ansgar, Iowa, and w ho has been engaged in th e ban k in g b u siness th e re for the p ast 45 y ears w as th e g uest of honor at a tu rk e y d in n er given recen tly by th e M itchell C ounty B ankers Asso ciation in th e basem en t of th e M eth odist church, w h ere 55 of his business associates and fellow b an k ers gath ered to pay him honor. A. B yron Golberg, w ho has been as sociated w ith Mr. Koch for th e p ast 22 years, gave a resum e of Mr. K och's bu sin ess activities th ro u g h o u t his busy career, w hich sta rte d in 1883. Help Shortage The Glenwood S tate B ank of Glenwood, Iowa, faced a shortage of help recen tly w hen M orris Moore en tered a Council Bluffs h ospital on Sunday for an operation and Mrs. W. E. Slezak resigned to go to Chicago to m eet h e r husband, Capt. Slezak, ju st re tu rn e d from overseas service in Italy. Some solution w as offered to th e shortage, how ever, w hen E a rl S ehneckloth a r rived in tow n w ith his discharge from th e coast g u ard and w en t to w ork im m ediately a t his fo rm er position of a ssista n t cashier. OUR 5 0 lli Y I . A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M em b er— F e d e ra l R e se rv e S ystem F e d e ra l D e p o sit in su ra n c e C o r p o r a t io n ★ FOR ★ THOSE WHO ★ ★ ★ HA ND L E M O N E Y A bbott offers a com plete line of COIN COUNTING MACHINES, Coin W ra p p e rs, C u r re n c y S trap s, Coin H an d lin g E quipm ent a n d o th er B ank S upplies. Illu stra te d h e re a re : T h e A b bo tt C o lo r e d F l a t W rap p e rs T h e A b bo tt C o lo r e d T u b u l a r C o in W r a p p e r s C I R C U L A R S M A IL E O ON R E Q U E S T We not on ly h a v e t h e d e s i r e b u t t h e A B I L I T Y t o s e r v e . ABBOTT COIN COUNTER COMPANY * North western Banker December 1945 68 * IO WA Des Moines News IG H T E E N of th e 59 E em ployes w ho en tered service have Iow a-D es M oines N ational Bank and Trust Co’s retu rn e d th u s far to th e ir w ork. P ra c tically all th e rem ain in g em ployees still in service are expected to re tu rn to th e bank. The follow ing are those who are back on th e job: R ichard Stubbs, George Scott, George A nder son, C harles Clift, Jo h n Scroggs, Or ville Gore, Jam es Brow n, H erm an H a r vey, E lm er Olson, George H arnagle, W ilbur Ford, B u rt Poepping, Paul NEWS Brow nell, L ester M archant, Jack Thoren, M ichael Costello, Jam es lies, and R aym ond Garns. Officials of the B an kers T rust Com w atched w ith satisfaction re cently as the first of th e ir em ployes in th e service began to re tu rn to th eir jobs. T h irty of th e thirty-tw o m en in th e b ank w ho w ere subject to the Se lective Service Act w ere called to active d uty and to date nine have been dis charged and all nine are back at w ork. The re st are expected to rejoin the b ank staff as soon as th ey are released from service. Those w ho have retu rn ed pany * C H IC A G O REPRESENTATIVE OF YOUR BANK 'h W en you make use of The N orthernT rust Com pany’s complete facilities and want up-to-the-m inute information, it’s almost like having a n o th e r d e p a rtm e n t for your bank. Through visits and discussions with this bank’s officers, correspondent banks find m uch that is helpful in broadening the service extended to their own customers. Your inquiries are cordi ally invited. THE N O R TH ER N TRUST COMPANY 5Ü S O U T H LA SALLE STR EE T. C H IC A G O 90 , IL L IN O IS iVlem ber le iie r a l Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19'i5 • th u s far and the place w here they served are: S/Sgt. P aul H uelsbeck, CBI th eatre; Donald H am m er, Mo. MM 1/c, B ritish W est Indies; E ugene Escher, Coxswain, Pacific th eatre; Lt. Malcolm Bacon, A ir Corps, M editerranean th e atre; Lt. Joseph B arnes, E uropean th eatre; Jo h n M onahan, SK 2/c, Farragut, Idaho; M ilford Baird, Mo. MM 1/c, South Pacific; Dale Carlisle, Phm . 2/c, South Pacific; and S/Sgt. W illiam M arks, South Pacific. Edw ard P. K autzky, assistan t vice p resident Valley Savings Bank, and Mrs. K autzky attended th e R obert M orris A ssociates convention in F rench Lick, Indiana, recently. The a ttractiv e solar house on display in th e lobby of th e Iowa-Des Moines N ational B ank and T ru st Co., has created a great deal of attention, p a r ticu larly am ong those who are plan ning on building new hom es, accord ing to H arold P. K lein, vice president. Main feature of the solar house is the p rom inent use of T herm opane, w hich is said to have th e first successful builtin insulation in w indow glass. The house is co nstructed w ith an extended roof so th a t in sum m ertim e w hen the su n is m ainly overhead, th e rays strik e th e projected eaves and can ’t reach the in terio r of th e house. W ith the insulated w indow pane featu re the house is th u s kept relatively cool. In th e w in tertim e w hen the sun generally strik es th e house from a m uch low er angle, th e rays are allowed to h it th e glass and th is helps keep th e house w arm . A nim ation of the lobby display strik in g ly illu strates w ith flashing sun rays th e w intersum m er featu res m aking T herm opane so valuable to th e solar house. J. R. A stley, cashier Valley Savings Bank, and Mrs. A stley recently a t tended the m ortgage ban k ers associa tion convention in New York. Two m ore em ployees ju st retu rn ed from th e service are back again w ith th e C entral N ational B ank & T ru st Company. T hey are: Irw in Abram, as sistan t cashier, w ho served tw en ty m onths w ith th e U. S. Navy; and Harold W inder, a ssistan t cashier, who after being released from th e U. S. A rm y served as a ssistan t exam iner w ith the N ational B anking D epartm ent of th e 7th F ed eral R eserve D istrict. R obert H e w itt has rejoined th e staff of th e Valley Savings B ank and is at w ork in th e receiving teller cage. H ew itt w orked in th e statistical sec tion of a 9th A ir Force B-26 outfit in E ngland, F ran ce and Belgium. OUR 50th YEAR 69 A nnouncem ent of th e election of R oger S. F in k b in e as a d irecto r of the Iowa-Des M oines N ational B ank and T ru s t C om pany w as m ade by H e rb e rt L. H orton, presid en t, follow ing th e N ovem ber board m eeting. Mr. F in k bine, w ho is vice p resid en t of W iscon sin L u m b er C om pany and p resid en t of Tip-Top D istrib u tin g Com pany, fills th e vacancy created by th e d eath of his uncle, E d w ard C. F in k b in e, w ho had been a m em ber of th e b o ard for m ore th a n 40 years. Mr. F in k b in e, a life-long re sid e n t of Iow a, w as b o rn in Des Moines. He w as a m em ber of th e class of 1920 of D a rt m o u th College. D uring W orld W ar I he saw service in th e U nited S tates n av y as a seam an and ensign. H e has ju s t recen tly re tu rn e d as a lieu ten an t com m ander a fte r th re e y e a rs service in th e n avy d u rin g W orld W ar II h aving been assigned to sea d u ty on th e U. S. S. B u n k er Hill. Mr. H o rto n also an nounced an in crease of $200,000 in th e su rp lu s of the bank. A fter th is increase, th e capital accounts are $2,500,000 of capital stock —common, $2,000,000 of su rp lu s and $1,050,000 of undivided profits and u n allocated reserves, a to tal of $5,550,000. G ran t M cP herrin, 81, longtim e Des M oines ban k er, died a t his hom e in Des M oines recently, follow ing an ex ten d ed illness. T he fo rm er p resid en t of th e C entral N ational B ank and T ru st Co., w ho re signed in 1939 a fte r 26 y ears of service, in recen t y e a rs h ad devoted his tim e to th e F irs t F ed eral S tate B ank, U ni v e rsity avenue and T w enty-fourth S treet, w hich he organized in 1911. Banking for ban k ers h as b een one of the dom inant c h a r a c t e r i s t i c s of th e Security N a tio n a l B ank. O ur entire correspondent relationship is personally supervised by m en who know the field a n d the re quirem ent of correspond ents. W e urge your inquiry on an y problem in which you feel w e c a n be of help. fE C U R rrtr VJPof Sioux Cits? M em b er F ed eral D e p o sit In su ran ce C orporation H eld for Identification Sentry: “Halt! W ho goes th e re ? ” R e tu rn in g A.W.O.L.: “F rie n d w ith b o ttle.” Sentry: “Pass, friend; halt, bottle!” Standardize your Bank Envelope needs on the Justrite Bank Line. It offers you a complete source or supply to cover all of your envelope requirements. The Justrite trademark means Quality envelopes and prompt deliveries on your orders. Check over the list of items below— thev are standard Bank envelopes for vour every need. Justrite Bank Specialties are available at y o u r f a v o r ite D e a ler’s. If he is unable to su pply you, w r ite to our facto ry for sam ples and prices. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • BANKERS MAILING Envelopes— mcae of Touar Justrite Fibre in Window and mailing styles. • TAMPERPROOF or Safety Express Envelopes— for Registered M ail— Open End or Open Side styles, either fla t or expanding. • COUPON WINDOW Envelopes— for the separa tion and storage of Bond Coupons. • BANK PAY Envelopes— for distribution of Em ployee Pay Checks. • CHECK Envelopes— to fit standard checks for mailing— available with window. • NOTE Envelopes— special size for mailing Bank Notes • COIN Envelopes— sizes to accommodate vary ing denominations of coin. • BANK-BY-MAIL System— a complete BankingBy-M ail service for Bank Cuctomers. • CURRENCY GIFT Envelopes— Engraved money holder envelopes for the Holiday Season. • WAR BOND JACKETS— advertise the Bank Name on every Bond sold. • Filing Envelopes— Policy Jackets— Open End Legal Envelopes. nORTHERD STRTES ERVELOPE CO. : C h i c a g o 4, I l l i n oi s St. Paul 1, Minnesota Northwestern Banker December 1945 70 —• IOWA NEWS — Leaves W est Union Named Vice President D. R. L ynch has announced his resig nation as vice p resid en t of th e F irst N ational B ank of W est U nion, Iowa, to accept th e position of cashier of th e DeKalb T ru st and Savings B ank, at DeKalb, Illinois. Mr. L ynch has as sum ed his new duties. Jo h n A. Love, long tim e resident and p ro m in en t farm er of G arner, Iowa, w as elected vice presid en t of th e H an cock C ounty N ational Bank, of G arner, at a m eeting of th e directors. Love, w ho is also a m em ber of the board of directors, succeeds th e late Dr. J. S. W esson. Old Coins A collection of dollar-size silver coins, g ath ered from all corn ers of the earth , w as on display a t th e K eokuk Savings B ank and T ru st Co., K eokuk, Iowa, for one w eek last m onth. The collection consists of 108 coins, stru ck d u rin g th e p ast 420 years. John A. Dunlap Jo h n A. Dunlap, 75, p resid en t of the S ecurity State B ank and dean of Keo kuk, Iowa, bankers, died v ery suddenly last m onth in th e K ahler hospital at R ochester, M innesota, w here he had undergone a surgical operation. Identified w ith the K eokuk N ational T he N ew York T rust Company Capital Funds Over $50,000,000 IO O BROADWAY M ADISON AVENUE A N D 4 o T H STREET TEN ROCKEFELLER PLAZA strength of 60 lbs. per square inch. Normal and -eversed figures, plus dif ferent color for each denomination, in stantly discloses value of package, in any position. Special clean, sanitary, vegetable adhesive sticks instantly. F r e e Samples Write today, to Dept, ★ BUY VICTORY g BONDS ' 7 ¿ e C . L . D O W N E Y C o m p ly. qH A N N I B A L , W v tU í ★ M ISSO U R I MpU. o¿ Coin it/àappeM. Member of Federal Deposit Insurance Corporation B ank since 1905, he w as elected pres ident of th a t in stitu tio n in December of 1924. W hen th e N ational and the Security State B anks w ere m erged on Septem ber 18, 1944, Mr. D unlap was elected president of the expanded firm. One of th e highlights of his d istin guished banking career w as th e honor accorded to him, and o th er K eokuk bankers, some 12 y ears ago, w hen the city held a testim onial banquet in rec ognition of K eokuk’s alm ost unique record of w eath erin g th e depths of the depression w ith o u t a bank failure. Veteran to W apello A rvin T. W ollenhaupt, of Red Oak, Iowa, has been nam ed second assistan t cashier in th e State B ank of W apello, W apello, Iowa. W ollenhaupt w as dis charged from service October 8th. He had been w ith th e 5th F inancial Divi sion in F ran ce and G erm any and p re vious to th a t had been em ployed at the H oughton State Bank in Red Oak. Open for Business T he F arm ers S tate B ank of M arion, Iowa, opened its doors for business N ovem ber 15th. The b a n k ’s offices, w hich form erly housed th e F arm ers and M erchants State Bank, have been com pletely redecorated and rem odeled w ith new counter and fixtures to greet the public. F lu o rescent lighting and a new tile floor have been in stalled. B ank officers and em ployes are: M. M. Strait, president; K. V. M urdoch, H. M. Soper and C. C. N aylor, vice presidents; F ra n k F rederick, H. H. B lackford and Floyd Em m ons, direc tors; J. B. G ruenw ald, cashier; E. T. B rockm an, J. J. Dolan and C harlotte Lillie, a ssistan t cashiers, and Grace Boyd and M orris N eighbors, tellers. Anne Scharfenberg All business houses in T raer, Iowa, w ere closed for tw o ho u rs last m onth in m em ory of A nne Scharfenberg w ho died th ere of a h e a rt attack. Miss Scarborough & C om pany Insurance Counselors to B a n ks D id you know that this company pioneered in putting Bank Insurance on a scientific basis and forcing rate reductions? A sk us about our counseling service. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December Î94-5 F I R S T N A T I O N A L B A N K B U I L D I N G • C H IC A G O 3 , I LL . STATE 4325 OUR 50th YEAR 71 • S charfenberg had been em ployed for 18 y ears as a ssista n t cashier in the F irs t N ational B ank of T ra e r u n til she suffered a fra c tu re d hip a y ear ago. Income Tax Service The Peoples Savings B ank, Elm a, Iowa, announce th e addition of a n o th er service for th e ir custom ers. T hey are p rep arin g to help custom ers w ith filing of th e ir incom e ta x repo rts. The w o rk w ill be in charge of H elen Koch and Ju n io r Elwood, both of w hom have m ade a stu d y of th e incom e ta x law s and are well qualified by p ast experience in th is w o rk to m ake out re tu rn s in an efficient m an ner. I O W A N E W S * a Des Moines Public F o ru m advocated a loan to B ritain to help ad ju st w orld economic affairs. He said it should be g ran ted on the condition th a t G reat B ritain w ill not go in for governm ent controlled foreign trad e b u t shall con tin u e th e old private-controlled trad e policy. He said “T here are tw o lines of thought. One group agrees w ith us th a t th e private-controlled foreign trad e should continue. A nother group doesn’t—advocating a self-sufficient economy, governm ent-m anaged foreign trade. The ones th a t agree w ith us w ill w in out if we help them . I don’t m ean th a t we should play S anta Claus b u t we should w ork out w ith the B ritish th e difficulties th ey face as a trad in g n atio n .” FROM COLONEL TO VICE P R E S ID E N T . . . Colonel O. P. D ecker re tu rn ed D ecem ber 1st as vice president of th e in v estm en t dep artm en t of th e A m erican N ational B ank and T ru st Com pany of Chicago. He has been on m ilitary leave since Ju ly 1942. The Colonel has been r ----------------GLOBE KINGMAN MIAMI PRESCOTT - x Iowan on Committee W alter T. R obinson of Des Moines, loan g u aran tee officer of th e Iow a v e t eran s facility, and p resid en t of the C itizens S tate B ank of Donnellson, Iowa, w as on a com m ittee of th e A m erican B an k ers A ssociation w hich studied th e G.I. bill of rig h ts at an A m erican Legion convention in Chi cago recently. R obinson said th a t am en d m en ts already proposed had com m ittee approval and th a t it fu r th e r recom m ended loan application form s be sim plified and th a t some processing agencies be elim inated. SUPERIOR GLENDALE —v MORENCI LITCHFIELD P ARK—^ CLIFTON HAYDEN SAFFORD WILLCOX TUCSON DOUGLAS NOGALES Joins Randall Bank H e rb e rt L. R oberts of C arroll, Iowa, has accepted th e position of a ssistan t cash ier in th e R andall S tate Bank, R andall, Iow a, m ade v acan t by th e resig n atio n of Dale Thom pson. He w as discharged in October after tw o and a half y ears service in th e arm y. He w en t into th e service early in 1943 and w as com m issioned at Pampa, Texas, o n ' D ecem ber 23, 1944, as a B-29 pilot. Mr. R oberts is a g rad u ate of Carroll high school and atten d ed Iow a State College before going into th e arm y. rT 1o offer a better, broader, faster service to banks, business firms an d individuals who do an import-export business with Mexico, we h av e opened an office in Nogales, Arizona— one of the most im portant points of entry on the United States-Mexico border. N EW S A N D VIEW S Our new Nogales office — the 21st in our statew ide system — is the result of our having acquired the Firs^ National Bank of Nogales, a well-known, long established, highly regard ed (C ontinued from page 15) institution. young m an, he began his business career rin g in g door bells for a vacuum cleaner firm. The B ank of A m erica now has m ore th a n five billion dollars in resources and m ore em ployers, em ployees, and stockholders th a n any o th er b an k in g in stitu tio n in th e w orld. W OULD H E L P B R IT A IN . . . C harles P. Taft, fo rm er directo r of If we can serve you, or your customers, in a n y w a y with your transactions in Mexico, you are most cordially invited to use our facilities. ▼ ~- —M tan ► * TW EN TY-O N E mt m ^ ^ F R IEN D LY C O N V EN IE N T VALLEY y X O FFIC ES IN A R I Z O N A \ bank / ★ < W ar Tim e Econom ic A ffairs in th e S tate D ep artm en t speaking recen tly at OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker December 194-5 72 Hold Correspondent Conference No Sh ortage Here on The Christm as Gifts Preferred by E veryone! VICTORy BONDS 'O t F r a n k e l ’s OES MOINES MERCHANTS The C e n tra l N a tio n a l B a n k & T ru s t C om pany, D es M oines, in v ite d a ll its c o rre sp o n d e n ts to D es M oines re c e n tly , a t w h ic h tim e a p la n w as p re s e n te d to h elp in th e d ev elo p m en t of F H A T itle One an d T itle Two b u sin e ss, in c lu d in g g roup in su ra n c e , th e l a tte r g iv in g p ro te c tio n on th e e n tire volum e o f such b u sin e ss w ritte n . Two p la n s o f p ro cedure w e re offered— one w h e re b y th e c o rre sp o n d e n t b a n k dev elo p ed th e busin ess, m ade th e c o lle ctio n s a n d k e p t th e pro fits, a t th e sam e tim e b e in g in su re d b y th e C e n tra l N a tio n a l, a n d th e o th e r in w h ich th e e n tire tra n s a c tio n w as tu rn e d o v er to th e C e n tra l N a tio n a l B a n k , w ith th e c o rre sp o n d e n t b a n k re c e iv in g a com m ission fo r develo p m en t. T he C e n tra l N a tio n a l B a n k fu rn ish e s a ll fo rm s a n d o th e r p a p e rs n e c e ssa ry to e ith e r p lan . P ic tu re d above, fro m le f t to rig h t, is L e h m a n P lu m m e r, v ice p re s id e n t of th e C e n tra l N a tio n a l B a n k ; H. R. M cB rid e, F H A s ta te d ire c to r fo r Io w a ; a n d E d w in F. B uckley, p re s id e n t of C e n tra l N a tio n a l B ank. MUTUAL BONDING COMPANY In corporated 1933 Home Office SOUTHERN SUR ETY BUILDING D es M o in es, Iow a • aw arded the Legion of M erit and has a citation for his w ork in th e Control D ivision h e ad q u arters A rm y Service Force. His citation refers p a rticu larly to his in tro d u ctio n of new m anage m ent and operating m ethods in prop e rty accounting and issue procedures of th e arm y. IOW A B A N K E R E N T E R T A IN S E ISE N H O W E R . . . The n ational spot Boone, w hen he and Mrs. Carlson, w ho are uncle and aunt, respectively, of Mrs. D w ig h t I). E isen h ow er, e n te r tained th e G eneral and his w ife for a brief visit. U nfortunately, Mrs. E isen how er w as tak en ill w ith pneum onia and spent some tim e at th e Boone C ounty H ospital. The G eneral w as forced to leave h e r th e re w hen he w ent to Chicago to address th e A m erican Legion Convention. light last m onth tu rn e d on an Iowa b anker, Joel C. Carlson, a ssistan t cash ier of th e Citizens N ational B ank at SE C R E T A R IE S CONVENTION . . . R ay Brundage, new presid en t of th e T h is is Io w a ’s o ld est su rety com pany. S tate A ssociation Section of th e A m er ican B ankers A ssociation has sent out an announcem ent of th e N ational Con ven tio n of S tate A ssociation Secre taries to be held in St. L ouis Decem b er 11th and 12th. This w ill be a “post m an ’s holiday” for secretaries of the state associations, m ost of w hom are ju st relaxing from recen t state con ventions. The m eeting w ill be in th e Jefferson Hotel. F rank K eyser, secre ta ry em eritus of th e M issouri B ankers A ssociation, is in charge of local a r rangem ents. A p ro g ressiv e com p any w ith e x p eri en ced , co n serv a tiv e m anagem en t. W e a r e p r o u d o f o u r h u n d re d an d fifty b a n k a g e n ts in Iow a. T o b e the e x c lu siv e rep resen tative of this com p any is an asset to you r bank. • W rite to E. H . W A R N E R S ecr eta ry and M an ager s .e r v ic e ô C o u n s e B a n k Plan to use an a d v ertisin g program of w e ll w orded m essa g es crea ted b y W e sslin g S e rv ic e s, D e s M oin es, Iow a P u b l i c R e l a t i o n s JAY A. WELCH BANK BRO KER H addain. K ansas D . R . W E S S L IN G , P R E S ID E N T 3 , ei https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banks Sold or Bought! quietly, quickly and in a personal manner (cunei 9, Jo “36 Years Practical Banking Experience ” 73 U N U SU A L B A N K HOLIDAYS . . . B ank and public holidays th ro u g h o u t th e U nited States differ g reatly in the v ario u s states. F o r exam ple, th e G uaranty Trust Company of New York in its booklet “B ank and Public H oli days th ro u g h o u t th e W orld 1945” points o u t th a t last m o n th L ouisiana celebrated “All S aints D ay” a b ank holiday. A rm istice Day tran sp o sed to Monday, N ovem ber 12, got th e green light in every state in th e union except Idaho and A rk an sas w h ere observance is u n c e rta in and in N o rth C arolina w here some b an k s rem ain open. T han k sg iv in g w as observed on N ovem b er 22 by all states except A rkansas and T ennessee and th e D istrict of Colum bia w hich ate tu rk e y N ovem ber 29th. M aryland also closed up shop F rid a y N ovem ber 23d w hich is listed as “R epudiation D ay”. J u s t w h at th e M arylanders repudiated is u nex plained. Ray R. Ridge, vice p resid en t of th e Omaha N ational Bank, is know n as one of th e handsom est and best dressed b ank officials in his city of cattle, cash and th e Ak-Sar-Ben. Incidentally, th e deposits of R ay’s w ell-know n in stitu tio n s are a t an all tim e high. vem ber 10, 1945. A dividend of 35c per sh are w as paid on May 25, 1945, m aking th e total d isbursem ent for the y ear 70c per share. F. E. DAVENPORT & CO. OM AHA John M. K ane has re tu rn e d to as sum e his official duties as a vice p resi d ent of the E m pire N ational B ank and T ru st Com pany of St. Paul, afte r an absence of tw o y ears w hile in the m ili ta ry service of the U nited States gov ernm ent. DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION O ldest In Des M oines 210 6th A ve. E nsign E m erson Re Buy, 20, g rad u ated from M idshipm en’s School at N otre Dame, Indiana, N ovem ber 2nd, and after a sh o rt leave w ill rep o rt to San Francisco for active duty. Before e n t e r i n g M idshipm en’s School, he grad u ated from Iow a State College at Ames in June, 1945, w here he received his degree in m echanical engineering and also com pleted his V-12 course in the Navy. Holdout Hubby: “Darling, h av en ’t I alw ays given you m y salary check th e first of every m o n th ?” Wife: “Yes, b u t you never told me you get paid tw ice a m onth—you lowdown, unprincipled em bezzler!” J. C. T hom son, p resid en t of N o rth w est B ancorporation, M inneapolis, in a letter to the N o r t h w e s t e r n B a n k e r , tells us th a t the D irectors of N o rth w est B ancorporation have declared a divi dend of 35c p e r sh are on 1,551,767 shares of stock o utstanding, payable N ovem ber 26, 1945, to stockholders of record as of th e close of business No 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 TIM ELO C K EXPERTS Free Floor Shoiv “All right, back th e re ? ” called th e conductor: “Hold on!” came a fem inine voice. “W ait till I get m y clothes on!” The en tire carful craned th e ir necks as the w om an got on the car w ith a basket of laundry. D ia l 4-7119 ELMER E. MILLER Pres, and Sec. HUBERT E. JAMES Asst. Sec. FOR YOUR ENJOYMENT . . . Listen to the •W o r l d K R N T , 1350 KC of m u s ic " 1 to 1:3 0 p .m . S u n d a y s IOWA'S LAMEST AND MOST fc|4> COM PLETE IIKQCH STATIONERY STORE! EVERYTHING FOR we OFFICE! K0C4 i B r o t h e r s H ’R I N T E R S ^ y - ----------- ■ ) UIsTABLISHEDj-“^----- * 1809 7 BOOK B IN D ER S S T A T IO N E R S V OFFICE OUTFITTEIRS \ W U ^ ^ B U S |NESS MACHINES Grand Av e . /w Fourth De s M o in e s , Ia . Index to Advertisers A A b b o t t C o i n C o u n t e r C o m p a n y ........................ 67 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 ................ 42 A m e r i c a n E x p r e s s C o m p a n y .............................40 A m erican N atio n al B a n k an d T ru st C o m p a n y .......... . .......................................................52 II B a n k o f A m e r i c a ...................................................... 37 B a n k e r s T r u s t C o m p a n y , D e s M o i n e s . . . 75 B a n k e r s T r u s t C o m p a n y , N e w Y o r k . . . . 27 C C e n tra l N a tio n al B a n k a n d T ru st C o m p a n y , D e s M o i n e s ....................................... 12 C e n tra l S tates M utual In su ra n c e A s s o c i a t i o n ............................................................. . 4 3 C h a s e N a t i o n a l B a n k ...............................................35 C ity N a tio n a l B a n k a n d T r u s t C o m p a n y , C h i c a g o ...............................................47 C ity N a tio n al B a n k an d T ru s t C o m p a n y , K a n s a s C i t y ...............................................58 C on tin en tal B an k and T ru st C om p a n y , N e w Y o r k ...................................................... 66 C o n tin e n ta l Illin o is N a tio n a l B a n k a n d T r u s t C o m p a n y ............................................ 31 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 ........... 61 D D a v e n p o r t , F . E . a n d C o m p a n y .............. 61-7 3 D e L u x e C h e c k P r i n t e r s , I n c .............................38 D es M oines B u ild in g , L o a n a n d S a v i n g s A s s o c i a t i o n ............................................. . .7 3 D i s t r i b u t o r s G r o u p , I n c .........................................34 D o a n e A g r i c u l t u r a l S e r v i c e , I n c ...................28 D o w n e y , C. L , C o m p a n y ....................................... 70 D r o v e r s N a t i o n a l B a n k ..........................................30 F F e d e r a l I n t e r m e d i a t e C r e d i t B a n k s ............39 F i r s t N a t i o n a l B a n k , C h i c a g o ........................ 48 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F i r s t N a t i o n a l B a n k , O m a h a ............................. 56 F i r s t N a t i o n a l B a n k , St. L o u i s ........................66 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 ................... 64 F i r s t S t. J o s e p h S t o c k Y a r d s N a t i o n a l B a n k ..............................................................60 F i r s t W i s c o n s i n N a t i o n a l B a n k ......................49 F r a n k e l C l o t h i n g C o m p a n y ............................... 72 II H a m m e r m i l l P a p e r C o m p a n y ...........................24 H e r r i n g - H a l l - M a r v i n S a f e C o m p a n y . . . . 26 H o m e I n s u r a n c e C o m p a n y ................................. 5 H o r n b l o w e r & W e e k s ...............................................36 I lo w a - D e s M oines N a tio n a l B a n k a n d T r u s t C o m p a n y ...................................................... 76 I r v i n g T r u s t C o m p a n y ............................................ 29 J Jam ieson and C o m p a n y ....................................... 47 K K o c h B r o t h e r s .............................................................. 73 L L a M o n t e , G e o r g e a n d S o n ................................. 6 L a w r e n c e W a r e h o u s e C o m p a n y ................... 32 L e s s i n g A d v e r t i s i n g C o m p a n y ........................ 72 L i v e S t o c k N a t i o n a l B a n k , C h i c a g o ............65 L i v e S t o c k N a t i o n a l B a n k , O m a h a .............. 62 L i v e S t o c k N a t i o n a l B a n k , S i o u x C i t y . . . 50 M M a n u f a c t u r e r s T r u s t C o m p a n y ....................... 4 M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 72 M e r c h a n t s N a t i o n a l B a n k ................................. 2 M in n e a p a o lis M o lin e P o w e r I m p l e m e n t C o m p a n y ........................................ 46 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 o c i a t i o n ............................................................................... 43 X N a t i o n a l B a n k o f W a t e r l o o .................... N atio n al C ash R e g iste r C o m p a n y ... N e w Y o r k T r u s t C o m p a n y ....................... N o rth e rn S ta te s E n v elo p e C o m p an y . N o r t h e r n T r u s t C o m p a n y ......................... N o r t h w e s t e r n N a t i o n a l B a n k ............... N o rth w e s te r n N a tio n a l Life I n s u r a n c e C o m p a n y ............................................. 67 O m a h a N a t i o n a l B a n k ................................. 23 « O 70 69 68 44 42 I* P h i l a d e l p h i a N a t i o n a l B a n k ...................... 8 P u b lic N a tio n al B a n k a n d T ru st C o m p a n y ..................................................................... 61 K R e n i e r , M i t c h e l l & R e i t z e l , I n c ........................... 36 R u ssell C o u n ty B u ild in g an d L oan A s s o c i a t i o n ................................................................ 38 S 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 . 28 S c a r b o r o u g h a n d C o m p a n y ................... 4 1 - 6 0 - 7 0 S e c u r i t y N a t i o n a l B a n k ..........................................69 S t o c k Y a r d s N a t i o n a l B a n k , O m a h a . . . . 57 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 ........................ 64 T h o m s o n & M c K i n n o n ............................................ 38 T o o t l e L a c y N a t i o n a l B a n k ........................ 58-5 9 IT U n i t e d S t a t e s N a t i o n a l B a n k ............................. 54 V V a l l e y N a t i o n a l B a n k , P h o e n i x ..................... 71 \v W a l t e r s , C h a r l e s E ., C o m p a n y ........................ 61 W e l c h , J a y A ............................................... 72 W e s s l i n g S e r v i c e s ....................................................72 W estern M u tu al F ire In surance C o m p a n y ..................................................................... 43 74 In the Directors Room N ot Quite So Friendly Out of Bounds “V ery well, T hom as,” said th e lady of fashion to a prospective b u tler, “I shall em ploy you.” “T h an k you, m adam .” “Oh, yes—one m ore thing. I am not accustom ed to ad dressing m em bers of th e staff by th e ir C hristian nam es, Thom as. W h at did you say y o u r s u r nam e w as?” “D arling, m adam .” “E r — th a t w ill be all for now, T hom as.” Voter: “I w ouldn’t vote for you if you w ere St. P eter him self.” Candidate: “If I w ere St. P e te r you couldn’t vote for me. You w ouldn’t be in m y d istrict.” Just a “Noah ” All A farm er w as losing his tem p er tr y ing to drive tw o m ules into th e field, w hen the parson came by. “You are ju st th e m an I w an t to see,” said th e farm er. “Tell me, re v erend, how did Noah get these critte rs into th e a rk ? ” All He A sked For The Cure F irs t W ife: “H ow did you ever b re a k y o u r h u sb an d from stay in g out n ig h ts? ” Second W ife: “He cam e in at 10 one n ig h t and I called, ‘Is th a t you, Bill?’ ” F irs t W ife: “H ow did th a t h elp?” Second Wife: “H is nam e is C lar ence.” Adds Up “Do you m ean to tell m e,” th e judge said, “th a t you m u rd ered th a t poor old lady for a p a ltry th re e d ollars?” “W ell, judge, you know how it is. T hree dollars here and th re e dollars th e re —it soon m o u n ts up.” A w rite r had been out too late the n ig h t before, and in the w rong places. N u rsing a m agnificent hangover, he dived into a basem ent re sta u ra n t in G reenw ich Village for breakfast. “W hat w ill you have sir?” th e w aiter asked. “All I w an t is tw o fried eggs and a few k ind w ords,” said the bleary-eyed w riter. P re sen tly th e w aiter re tu rn e d w ith tw o pale-looking eggs. “H ere are y o u r eggs, sir,” he said, “and now for the kind words: don’t eat ’em .” The Reason A Good Guess Office Boy (p rew ar): “I th in k y o u ’re w anted on th e phone.” G eneral Agent: “You think? W hy don’t you k now ?” Office Boy: “W ell, th e voice at th e o th er end of th e line said, ‘Is th a t you, you old idiot’?” Main Thing J u s t give m e a m an W ith a m illion or two Or one w ho is handsom e W ould h ap p ily do. A d ashing young fellow Is swell any day, Or one w ho is fam ous W ould su it me okay. B ut if th e m an shortage Should get any w orse Go back to th e v ery F irs t line of th is verse. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December 19^5 No Sale Gus Swanson, th e m aster salesm an, w axed eloquently about th e m erits of his vacuum cleaner, b u t th e sm all-town housew ife w as not im pressed. She suggested th a t he talk less and show h er w h at th e m achine could do. T h at w as rig h t down G us’ alley. Beam ing broadly, he rigged up his cleaner and th e n reached his arm into the chim ney of th e open fireplace and bro u g h t out a handful of soot—th en another. He spread th e m ess over the carpet and then, for good m easure, added a shovelful of ashes, tak en from the grate. “Now,” Gus said, sm iling triu m p h a n t ly, “I ’ll show you w hat this vacuum cleaner can do. Y ou’ll be surprised, lady! W h ere’s yo u r electric sw itch?” “E lectric sw itch!” echoed th e su r prised housew ife. “We b u rn gas!” A nd th a t kn o t has been on Gus’s head ever since. C O N V E N T IO N S A. B. A. M id-W inter Trust C on feren ce— F eb . 4-6, 1946, N ew York C ity, W aldorf-A storia. Iowa G roup E leven M eetin g—F eb . 22, 1946, B u rlin g to n , H o tel B u rlington . A m erica n In stitu te o f B an king — Ju ne 11-14, 1946, C in cin n ati. Iowa Ju n io r B ankers— Ju n e 12, 1946, D es M oines, H o tel Fort D es M oines. M innesota — Ju n e 12-13, 1946, M in n ea p o lis, H o tel N ico llet. Iowa— S ep t. 9-11, D es M oines, H otel Fort Des M oines. “Hello, coach.” “I th o u g h t you w ere told not to d rin k w hile in tra in in g .” W hat m akes you th in k I ’ve been drinking, coach?” “I ’m not the coach.” Big Business Two k n ig h ts of th e road found a bottle of w hite m ule along th e railroad tracks. The bottle w as soon em pty. A fter a w hile one puffed out his chest and said, “You know, Bill, tom orrow I ’m going to buy th is railroad. I ’m going to buy all the railroads in the country, all th e autom obiles, all the steam ships—everything. W hat do you th in k of th a t? ” Bill looked at his com panion d isp ar agingly and replied, “Im possible. I w on’t sell.” OUR 5 0 th YEAR Are we doing all we can to encourage local merchants to make wider use o f our facilities in financing sates o f new merchandise? Let's ask the Bankers Trust. They've been very progressive in that type o f dealer cooperation I H A T ’S the rig h t answer! W e alw ays welcome the o p p o rtu n ity to exchange inform ation w ith you in any w ay th a t m ay help either or both of us to do a better job of banking. ■ B A N KER S T R U S T WCOMPANY 'mfitF «»min 6th and Locust https://fraser.stlouisfed.org MEMBER FEDERAL DEPOSIT IN SURAN CE CO RPO RATIO N Federal Reserve Bank of St. Louis es Moines is occupying a growing and increasingly important position as a grain center. For prompt, efficient service, Iowa Banks are invited to route grain and other drafts to this Bank for collection. A steadily growing volume of transit business indicates that Iowa Banks and Bankers are relying to a greater extent than ever before on the facilities of this Bank to provide fast and efficient service for their customers. 9ouilgJl TO TA L ¡ m a m RESO URCES M fe a n J z MORE THAN $100,000,000 lw m m i) iW Ê Ë B w m M B nm m ¡Is iit Insurance Corporation | j https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m ii a
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