Full text of The Northwestern Banker : December 1947, 52nd Year, No. 725

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Federal Reserve Bank of St. Louis

DECEM BER

1947

SECRETARY JOHN W. SNYDER IN ST. LOUIS— Page 9

W e Invite Your Account
Our widespread network of correspondent banks
provide us with exceptional facilities to serve as your
correspondent here in the midwest.
W e cordially invite the accounts of banks which desire
prompt service in handling checks, the transfer of
funds and the confidential exchange of dependable
credit information.

/f/ú á v e a t

THE
MERCHANTS NATIONAL
==>BANRC=
O F F I C E R S
JAMES E. HAM ILTON, Chairm an Executive
Committee
S. E. COQUILLETTE, C hairm an of the Board
JOHN T. HAMILTON II. President
H. N. B OYSON, V ice President
M ARK J. MYERS, V ice President an d Cashier
GEORGE F. MILLER, V ice President and
Trust Officer
M AR VIN R. SELDEN, V ice President
FRED W . SMITH, V ice President

‘V

. 9

R. W . M AN ATT, Assistant Cashier
L. W . BROULIK, Assistant Cashier
PETER BAILEY, Assistant Cashier
R. D. B RO W N, Assistant C ashier
O . A . KEARNEY, Assistant Cashier
STANLEY J. MOHRBACHER, A sst. Cashier
EVERETT C. PRATT, Assistant Cashier
C. F. PEREMSKY, Assistant Cashier
VICTOR W . BRYANT, Assistant Cashier
W ALLA CE S. HAM ILTON, Building M anager

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines Iowa. Subscription, 35c
per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879.

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Federal Reserve Bank of St. Louis

W /teé

rO M 0U â

ASHLAND
Henry Clays
Promised Land

A shland stirs a memory o f days when Clay walked this ground he loved

£ 6 T a m in one respect better

the

leader of his party, the nation never re

J_ off than M o s e s /’ wrote

place and in raising fine horses

warded him with its highest office. Although

H enry Clay to a friend. “ He

and breeding cattle. In his ab

he is quoted as saying,

sence much of the responsi-

be right than President,” his failure to at

d ied w ithout reach in g the

From an old daguerreotype

the

management

Promised Land. I occupy as good a farm as
^ n y he would have found, had he reached

bility was shouldered by his wife, the former
Lucretia Hart, and, as Clay declared, “ how

It, and Ashland has been acquired, not by
hereditary descent, but by my own labor.”

diligently, how nobly she has performed the
duties thus devolved upon her can be known

Y et

to no mortal save myself alone.”

though Clay attained his Promised

Land, his long career as Congressman, Sec
retary of State and Senator prevented him
from dwelling there as much as he wished.
Each time he decided to retire, popular de

Llenry Clay achieved his fame, just as he
acquired Ashland, through his own efforts.

“ I would rather

tain this position was a bitter disappoint
ment. His private life was further saddened
by family tragedies. O f eleven children, all
six daughters died before their father, one
son was killed in the Mexican W a r and
another became insane after an accident.
After Clay’ s death the house at Ashland

Lacking much formal education, he never
theless rapidly made his reputation as a bril

was torn down, but the present dwelling,

liant orator and lawyer. People used to say

reconstructed by his son on the same plan

mand and his own zeal forced him to re
enter public life.

that no one whom Clay defended was ever

and with some of the original materials pre
serves the same general aspect. W ithin are

Clay bought Ashland, near Lexington,
Kentucky, in 1806 and built the main house

hanged. Whenever he spoke, huge crowds
gathered, attracted by his superb voice and

tos of his career. Though the estate has

a few years later, adding to the estate at

compelling personality. However, his re

dwindled in size, it still retains the peaceful

intervals until it included 600 fertile acres.

nouncing a lucrative law practice for public

A n excellent farmer, he took great interest

service

charm which made it a place of solace to
the famous owner.

prevented

him

from

becoming

wealthy. In fact, at one time it
seemed that he would have to sell
Ashland until anonymous friends
throughout the country raised
$50,000 with which they settled
his obligations.
Between 1 82 4 and
1848 Clay was a strong
presidential

candidate

in nearly every ca m

much of Clay’s furniture and many memen

7he Home, through its agents and brokers,
is America’s leading insurance protector
of American Homes and the Homes of
American Industry.

☆ THE HOME ☆

paign but in spite of his
popularity and the fact

NEW

that for a generation he
Henry Clay addressing the Senators in 1850

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Federal Reserve Bank of St. Louis

was the acknowledged

FI RE

YO R K

A U T O M O B I L E

•

4
*

in Chicago
AS YO U R BANK
You are cordially invited to use The First National
Bank of Chicago as your correspondent. To serve you,
and to insure prompt attention in all correspondent
bank relationships, there is an experienced group of
officers which devotes its entire time to this work.
E dward E. B rown ,
James B. F organ

Chairman
B entley G. M c Cloud

Vice-Chairman
BANK

AN D

President
BA N KERS

DIVISION

John j. A nton
T homas J. N ugent
H arold W . L ewis
M elvin H. T hies
V erne L. Bartling
Charles F. N ewhall
E dward D ecker
C. Guy W

illard

OFFICERS

Vice-President
Vice-President
Asst. Vice-President
Asst. Vice-President
Asst. Vice-President
Assistant Cashier
Assistant Cashier
Assistant Cashier

The First National Bank of Chicago
B u ild in g w ith C h ic a g o a n d the N a tio n S in ce 18 63
MEMBER FEDERAL

*
Northwest ern Banker, December, 1947

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Federal Reserve Bank of St. Louis

DEPOSIT INSURANCE CORPORATION

★

G RIM NEWS (ROM THl
NATION’S TOUR tAGES.
* *

95 IN USE AT UNION TRUST COMPANY OF MARYLAND
MICHIGAN NATIONAL BANK BUYS 70
98 IN SERVICE AT PEOPLE'S FIRST NATIONAL BANK & TRUST COMPANY, PITTSBURGH
63 AT INDUSTRIAL NATIONAL BANK OF DETROIT
FIRST NATIONAL BANK OF PORTLAND, OREGON, USES 60
44 IN OPERATION AT TOLEDO TRUST COMPANY
Thousands of Burroughs Commercial Teller’s
machines have already been delivered . . , thousands
more are on order and are being shipped out in
daily increasing numbers.
It was inevitable that the commercial teller’s cage
would forsake outmoded pen-and-ink methods for
mechanized speed and efficiency. Today, the change
is well under way and progressing rapidly on a
nation-wide scale.
Large and small banks have adopted this modern
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internal operations become more efficient, records
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Customers praise the quick service and appreciate
the protection afforded by machine-printed, regis
tered deposit receipts.
Your local Burroughs office will be pleased to
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tool . . . the story of the machine itself, its success in
other banks, its boon to customer relations. Get the
facts today!

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Federal Reserve Bank of St. Louis

WHEREVER

T H E R E ’S

BUSINESS

T H E R E ’S

Burroughs ,
THE MARK OF SUPERIORITY
IN MODERN BUSINESS MACHINES

Northwestern Banker, December, 1947

IN SHANGHAI, H O N G KO N G , TIENTSIN, TO KYO

Focal Points in Far Eastern Trade
Chase branches in Shanghai, H o n g K o n g and

T hrou gh these branches, offices o f representa

Tientsin have lo n g been recognized as vital links

tives, and relations with correspondent banks,

in trade with the Orient. T o these, the Chase is

the Chase can provide valuable assistance for the

now

branch— in

developm ent o f your business in China, Japan,

T o k y o — to be fully staffed and ready for opera

the Philippines, the new nations o f India and all

tion before the end o f 1 9 4 7 .

other parts o f the Orient.

adding

T hese

another Far Eastern

overseas

branches

are

equipped

T he benefits o f these facilities and connections

provide com plete banking facilities. T heir offi

are available to Chase correspondent banks. T h e

cers are inform ed on business as well as banking

time and m oney this service saves are often im

conditions in the Far East, and can offer first

portant factors in the successful transaction o f

hand inform ation as it is required.

their custom ers’ Far Eastern business.

Send fo r our Booklet H O W T H E CH ASE CAN B E N E FIT Y O U R BUSINESS O V E R S E A S .

THE

CHASE

N A TIO N A L

BANK

OF THE CITY OF NEW YORK
HEAD O FFICE: Pine Street corner o f Nassau
M em ber Federal D eposit Insurance Corporation

LONDON— 6 Lombard Street
Havana
•
San Juan

•
•

51 Berkeley Square
Panama

•

Offices of Representatives: Mexico City
THE CHASE BANK: Paris
•
Shanghai

Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

Colon
•
•

•
•

Bush House, Aldwych
Cristobal
•
Balboa

Cairo
•
Hong Kong

Bombay
•
Tientsin

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Federal Reserve Bank of St. Louis

“As of close of b u sin e ss... 1 9 4 7 ... at

to A m ericans b a n k ers on
a h isto r y -m a k in g y e a r !
At the end o f the year when this nation has sought faith
fully to protect the peace we fought for, the bankers of
America have outstanding some sixteen billion dollars in
business loans. In addition, bank debits to individual ac
counts totaled in the last twelve months one trillion,
100 billion dollars. . . topping the previous postwar peak!
That tremendous volume is unmatched in all the rec
ords o f banking. It was handled by this country's banks in
their stride—a measure o f their resources and power.

Northwest ern Banker, December, 1947

Now every bank can mechanize
every department with G/ffiftonafo

Whatever the size of your bank,
there’s a

com plete line o f N a tio n al

Accounting M achines to give you the ad
vantages o f m echanized accounting in
every departm ent.

N in ety -fou r o f the

hundred largest banks in

the

United

States use N ationals. A s do thousands o f
smaller ones. W in dow -postin g machines,
back office bookkeeping machines, proof
machines, listing machines, com bination
ty p e w r itin g -b o o k k e e p in g m a ch in e s—
you can fill every need for every depart
m ent w ith N a tio n a ls!
One o f the m ost popular and widely
used is the N a tio n al M u ltip le -D u ty A c
counting M achine. Savings, Com m ercial
Ledgers, Loans and

D iscounts,

M o r t

gages, T rust A ccounting, P ayroll, D a ily
Statem ent — A L L are handled by this
O N E m achine! A nother great tim e and
m oney

saver is the

N ational

Central

Control and P ro of M achine, which pro
vides definite proof and control on all
incom ing item s, and eliminates peaks
and bottlenecks b y keeping an even flow
o f work to all departm ents. M a n y small
banks handling as few as 2,000 item s a
day

use one o f these machines.

large bank uses sixty-five!

A NEW , ILLUSTRATED BO O KLET of some 60 pages describes the services o f each o f the
machines in the National line. Shows how they can speed the work in e v e r y depart
ment o f your bank. Ask your National representative to bring you your copy. Y ou’ ll
find it both informative and helpful, and you will want to keep it in a convenient place
for reference when accounting problems arise.

/ f ta

f a

CASH REGISTERS • ADDING MACHINES
ACCOUNTING MACHINES
THE

NATIONAL

CASH

COMPANY

Dayton 9, Ohio. Sales and Service Offices in over 4 0 0 cities.
Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

One

fíe a r E d ito r

DES M O INES
Oldest Financial Journal West of the Mississippi

The following letters were received
from Northwestern Banker readers.
Your views and opinions on any sub
ject will be gladly published in this
column.

•

52nd Year

•

No. 725

IN THIS DECEMBER, 1947, ISSUE
EDITORIALS
A cro ss the D esk

from

.................................................

the P u blish er.........

"Souvenirs"
“ Dear C liff:
“ Have just finished going over your No
vember issue and want to express our appre
ciation for the space and quality of material
you have given Nebraska in this issue. You
certainly gave us a very nice group of stories
and I will wager you will find many of this
issue tucked away as souvenirs in the ar
chives of our members.
“ We missed you during our convention, for
you always cruise around and help to make
everybody feel at home. However, let me
tell you that Henry and Ben are not slouches
at this job either, so the N o r t h w e s t e r n
B a n k e r was taken care of in very fine order
in Omaha.
“ I want to wish you many years of con
tinued success.”
Carl G. Swanson, Secretar it.
Nebraska Bankers Associa
tion, 420 Farnam Building,
Omaha

"Getting Some Incentive"
“ I want to compliment you upon the Octo
ber edition of the N o r t h w e s t e r n B a n k e r .
It is indeed a very attractive number and
the picture which is on page 16 is a beairtiful
scene.
“ I notice too your article on Savings De
posits and the one referring to Consumer
Credit. These are all very interesting, and
especially interesting is your page which is
marked 'L egal/ that is, page 26.
“ You are doing a fine job in publishing
the N o r t h w e s t e r n B a n k e r and you are do
ing something which all banking magazines
are not doing, and that is, you are giving in
formative articles on current topics to bank
ers, which is, of course, very valuable to
them.
(Turn to page 28, please)

FEATURE ARTICLES
D ear E d itor ........................................................................................................................

N ew s and V iew s o f the B a n k in g W o r ld ...................... Clifford De Puy 16
A C o u n try B a n ker Checks E u ro p e ................................. C. J. Mortensen 17
T he G reatest Show on E a rth . ......... Evelyn and Talbot Peterson 1 8 ,1 9
A cq u ires M a n u fa c tu rin g A p p o in tm e n t fo r

ON THE COVER

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Federal Reserve Bank of St. Louis

Io w a ....................................... 20

C ity N a tio n a l in N e w Q u a rters...... ....... ............. ...................................... ......... 24

BONDS AND INVESTMENTS
W h a t Is H a p p e n in g in the M unicip al M a rk e t....... Raymond Trigger 29

INSURANCE
W h a t B a n k ers W a n t to K n ow A b ou t L ife In su ra n ce................ ............
......................................................
...... ........ ............ ................ Raleigh E. Ross 33

STATE BANKING NEWS
M in n esota N e w s ....................................................... ................................................... . 37
T w in C ity N ew s .............. ................................................................................... 39
South D a k o ta N e w s ........................................................................ ............................... 41
Sioux F a lls N e w s.........

............................................................ ......... ............... 42

N orth D akota N e w s ...............................................................................

N e b rask a N e w s ..... .............. ......................................................
...... .................... 45
N eb ra sk a Convention S tory and P ictu res...... Ben Haller, Jr. 4 6, 47
O m aha

N ew s

................................... ..............

.......................... .......................... 50

Iow a N ew s .......................................................................................................................... 53
Sioux C ity N e w s...........................................................
58
D es M oines N e w s....................................... ...........................................

..........

IN THE DIRECTORS' ROOM
D on’t Stop M e I f Y o u ’ve H eard T h e se ........... .......................
C onventions

........................ 62

..............

NORTHWESTERN BANKER
527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
CLIFFORD DE PUY
Publisher

Secretary of the Treasury John W.
Snyder was guest of honor and speak
er at the dinner session of the one
day Conference of Bank Correspond
ents held last month by the First Na
tional Bank in St. Louis. Walter AY.
Smith, president of the First National,
is at the right.

F ro n tisp a g e .................... ................................................................................................. 13
H ow a B anker Looks at In sta llm en t F in a n c in g ....Elmer E. Schmus 15

HENRY H. HAYNES
Editor
ELIZABETH COLE
Advertising Assistant
PAUL W. SHOOLL
Field Representative

RALPH W. MOORHEAD
Associate Publisher
BEN J. HALLER, JR.
MALCOLM K. FREELAND
Associate Editor
Associate Editor
HAZEL C. HADLEY
SADIE E. WAY
Auditor
Circulation Department
JOSEPH W. FRANKS
Field Representative

NEW YORK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806

MUrray HIM 2-0326

DE PUY PUBLICATIONS:

Northwestern Banker, Underwriters Review,
Iowa-Nebraska Bank Directory.
Northwestern Banker, December, 1947

individual liberties, and we are not yet Govern
ment-owned. Let us preserve the system of free
enterprise. Let us meet the challenge before it
is too late !
“ Each of us can begin this moment to figure
out where best to take constructive steps. The
field of public relations concerns us all and is
more important today than ever before. Our suc
cess along these lines will mean our salvation.
“ We must guard against the insatiable appetite
of Government to assume more and more power
and to regulate the individual to an ever-increas
ing extent.”

Your remarks, Mr. Potts, were also in line with
the resolution passed by the American Bankers
Association at its recent convention, in which it
said :

Across the Desk
From the Publisher
.b e a n . t f-n e A e n ic / ? . P a t t i :
President, Philadelphia National Bank

With England nationalizing the Bank of Eng
land, the coal mines and other industries, we were
quite interested in your answer to the question :
“ What are the chances of banks becoming na
tionalized in the United States?”
In other words, how far is our government like
ly to go in taking complete possession of the man
agement and control of all of our banking institu
tions ?
Frankly, Mr. Potts, we must recognize that
there are more than thirty separate government
financial organizations, either competing with or,
to some extent, taking business from the present
privately owned banking institutions.
Your answer to the nationalization of banking
in this country was emphatically stated, when you
said :
“ A shining example of the usurpation of power
by Government is in the banking system of this
country. Unless constructive steps are taken to
combat the inroads of regulation, the bankingfraternity may find itself completely under the
domination of the Federal authorities.
“ Banking is in a particularly vulnerable spot.
Government competition has already made large
inroads and controls and regulations are too nu
merous to set forth. However, we will have our
Northwest ern Banker, December, 1947

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Federal Reserve Bank of St. Louis

“ Nationalization or socialization of industry
has been increasing, partcuiarly in Europe, very
rapidly since the war and it has now become pos
sible to observe some of the results. In many
countries, nationalized businesses have generally
lost efficiency, existing production requires rela
tively larger number of workers, their output has
been slowed down, and their operating figures, in
many instances, have changed from black to red.
The workers in these industries have learned that
under bureaucratic administration, they have lost
rather than gained freedom and that there is no
substitute for work. Management has been ham
pered by endless committees and political inter
ference.
“ In this same period, the United States with its
capitalist, enterprise economy has outstripped
every other nation in speed of recovery, growth
in production, and increase in well-being of the
people.”

We, therefore, agree with you, Mr. Potts, that
the tendency toward the nationalization of our
banks or of any other phase of our American
business life should be combatted at all times, and
as far as banking is concerned, bankers through
out the nation should resist any further encroach
ment by the Government into the management of
their institutions, if we are to continue these in
stitutions as free enterprise units in what is still
the greatest banking system in the world today.

jb e a n

'V l a c l t e l l a u

M . M a l a t a o .:

Foreign Minister of the U.S.S.R.

In reading your Moscow a ddress and your
great defense of what the Soviet Union has done
as it completes its thirtieth year since the Revo
lution, we thought what a wonderful interna
tional fabricator you have become when you said :
“ It must be recognized that the most important

11
gain of our Revolution is the new moral character
and ideological growth of the people as Soviet

Ib ea i

patriots” .

Professor, Rural Sociology, Pennsylvania State College

Perhaps you call the 20,000,000 Russians who
are now in your concentration camps Soviet pa
triots. They do as you tell them or they get shot,
and that is not exactly patriotism.
May we suggest that you get up to date on
what is going on and has gone on in Russia, Mr.
Molotov, by reading ‘ ‘ I Chose Freedom” by Vic
tor Kravchenko. He was a former member of
your Party, but escaped to this country and really
tells what has been happening behind the Iron
( 'Urtain.
For your convenience, Mr. Molotov, here are a
few paragraphs which do tell the truth about
your own Government:

-v

‘ ‘ The people of my country are in the clutches
of the police-state; they cannot possibly make
their views and their hopes and their distress
known to the world. In the measure that I can
reveal the true physiognomy of the Kremlin dic
tatorship to the peoples and governments of demo
cratic countries, I feel that I am helping in a
small way to warn the world against self-de
lusions. For the building of a more decent world
we need greater mutual understanding and deep
er friendship between the peoples of this globe,
and not only between the governments.
‘ ‘ The Communist dictatorship in the U.S.S.R.
is not a problem for the Russian people only, or
for the democracies only. It is the problem of all
humankind. The world dare not continue indefi
nitely to turn its back on the martyrdom of a
great segment of the human race inhabiting onesixth of the earth’s surface. This segment is
ruled by a deified group of leaders resting on the
Party apparatus of the Politburo and a gigantic
police force. The hundreds of millions of people
in the U.S.S.R. have no voice in shaping their own
destinies, and are completely cut off from the peo
ples and the streams of thought in all other coun
tries.
‘ ‘ Though the Kremlin leaders have denied
their own subjects the rudiments of economic
and political liberty, they and their fellow-trav
elers abroad seek to make the rest of the world
believe that the Soviet system is a species of free
dom— that it is real democracy as contrasted with
the ‘ old-fashioned’ variety.”

W illia m

Q . M a tU z ^ i:

We were interested and greatly surprised at a
speech which you made recently, stating that you
thought the American farmer is becoming “ selfcentered and self-satisfied, and has amazingly
little concern for people beyond his own local
community” .
You also said that, ‘ ‘ it is not really very im
portant what a farmer plants on his back forty
acres, but it is terribly important what happens
in Palestine, or Greece or Argentina.
‘ ‘ Regarding the welfare of other American
groups, the farmer is unconcerned or negative.
These attitudes of the American farmer give us
considerable pause to think, when we learn that
in Germany the strongest support for the Nazi
movement came from the Protestant middle-class
rural people— in other words, from the German
equivalent of the American farmer.”

Perhaps our first answer to you, Professor
Mather, is that if the American farmer is “ selfcentered and self-satisfied” how does it happen
that lie not only gave his sons and daughters to
the war effort, but also toiled day and night to
help produce the food which was needed to carry
on the struggle?
At least he didn’t strike for more wages in
the midst of battle as John L. Lewis did by threat
ening to close the coal mines while our boys were
still dying on foreign battle fields.
The average American farmer today is more
intelligent, better read than at any time in our
history. If he is not himself a college graduate,
most of his sons and daughters are, and they do
know what is going on beyond their own commu
nity and how it affects them.
And if you compare the American Farmer with
the Nazi-dominated type under Hitler’s regime,
then I think you’d better consult a psychiatrist
—because you need one.
America has become the great nation that it is
through the help of its individual, independent
merchants, bankers and farmers, and the latter
group have always been our pioneers in the fore
front of progress creating fields of plenty where
forests and wildernesses have existed before.

If the Soviet state is the great ideal which
you claim for it, Mr. Molotov, why don’t you open
wide your doors for writers, photographers and
let all the world really know what a Utopia you
really have. You know and we know that you
are afraid to do it. because you know that what
Victor Kravchenko has said is true.

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1947

Central
&

N ational

T ru st C o m pan y

M E M B E R

F E D E R A L

Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

D E P O S I T

★

Bank

Des Moines, iowa

I N S U R A N C E

C O R P O R A T I O N

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Federal Reserve Bank of St. Louis

Those who reach
the top usually
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to do one thing
superlatively well

■

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Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

THi WAVY UNtS ® M t ft tA »ON TE TRAPS-MARK

■

H ow a H anker Looks
A t In stallm en t L'inaneintj
Urges Adherence to the Standard of a
Thirty-three and One-third Per Cent Down Payment
By ELMER E. SCHMUS
Vice President and Cashier
First National Bank
Chicago
HE extension of installment sales
credits has always been quite flex
ible with the soundest credits based
upon the value of the chattel and the
capacity of the borrower to pay. It
was these factors, coupled with im
proving business conditions, that per
mitted the purchase of a sizable vol
ume of substandard paper in the period
immediately preceding our entry in
the war. We have some of the same
favorable factors in our economy to
day. The average weekly earnings of
wage earners in industry have in
creased approximately 54% per cent
since 1941, and production generally
is at a high level.
Along with these favorable factors
we also see signs which should cause
considerable concern. Using 1935 to
1939 as a base, or 100 per cent, indexes
show that the purchasing power of
the dollar, as measured by wholesale
prices, declined to 85.9 per cent in De
cember, 1941, declining further to 57.1
per cent in December, 1946, and as of
July, 1947, it had reached a low of
53.3 per cent. This has been mani
fested in the automobile prices which
have shown a steady increase, with
some buyers already priced out of the
new car class.
Living costs as measured by con
sumers’ prices show a similar trend to
that evidenced by the purchasing pow
er of the dollar. Using the same base
as above, that is, with 1935 to 1939
equal to 100 per cent, the purchasing
power of the dollar declined to 90.5
per cent in December, 1941, to 65.2 per
cent in December, 1946, and to 63.1 per
cent in July of this year.
Another indicator of the present
price inflation is reflected by the index
of food prices. With 1935 to 1939 as
a base, and equal to 100 per cent, the
index has risen to 193.1 per cent as of
July, 1947. These are indications that
inflation now is a price inflation and
any price boom has inherent dangers.
In view of the spiraling prices and
general economic conditions, I firmly
believe that credit terms granted the

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consumer should follow closely the
pattern set in 1941, with greater adher
ence than heretofore to the standard
of a 33% per cent down payment. One
of the fundamentals of installment
sales financing which has contributed
so much to the successful operations

E L M E R E. SCHM US
“ A Reasonable Equity for the Purchaser”

of the finance business has been the
requirement that the purchaser have
a reasonable equity in the goods he
acquires.
The maximum terms for 1947 new
and used passenger and commercial
cars are recommended at twenty-four
months, with a minimum down pay
ment of 33 % per cent. Eighteen
months is the maximum term on 1946
models, with a down payment of no
less than 33% per cent and the maxi
mum advance 120 per cent of the cash
loan value of the chattel. On the
1940, 1941 and 1942 models, fifteen
months is recommended as the maxi
mum term, with a down payment of
no less than 33% per cent and ad
vances not in excess of the cash loan
value of the car. Terms not in excess

of twelve months with a minimum
down payment of 40 per cent are rec
ommended for 1939, 1938 and 1937 cars,
and advances not in excess of 90 per
cent of the cash loan value of the 1938
and 1939 models, with 80 per cent of
the cash loan value as the maximum
advance on the 1937 car and models of
the preceding years.
I strongly urge strict adherence to
the above terms. They are in keeping
with present economic conditions, and
since we are in a seller’s market it is
unnecessary to stretch terms beyond
those recommended. I am confident
that if the finance companies maintain
in the period ahead the sound opera
tions which have characterized pre
vious periods, the banks can safely
liberalize their credits to finance com
panies beyond the standard set by the
banks in 1941. This standard had
been either a three to one debt ratio
or a six months’ liquidity, depending
upon which theory was more accept
able to the banks. I feel certain that
with finance company acceptance of
the recommended terms to the con
sumer, banks generally would un
doubtedly feel entirely secure in com
mitments to companies showing a nine
months’ liquidity, which would be the
equivalent of approximately a four to
one debt position based on the terms
granted the consumer in 1941.
There are reports of extremely low
rates quoted on both installment sales
and installment loan credits. These
reports give cause for considerable
concern because by any sound measur
ing stick the charges reported are not
sufficient to cover costs of operation,
loss and deferred income reserves, and
a reasonable margin of profit. The
financing of installment sales has al
ways been a high cost operation, and
excessive dealer reserves have con
tributed directly to this condition.
Lower rates to the consumer, coupled
with increasing costs of operation,
have resulted in a net return from the
finance charge substantially less than
(Turn to page 27, please)
Northwestern Banker, December, 1947

\ Te t v s and
OF THE BANKING WORLD
By CLIFFORD DE PUY, Publisher

HEN we visited the United
Nations Sessions at Lake Suc
cess, New York, recently, we
were wondering if the founders were
doing a little wishful thinking when
they picked a place with the word
“ Success” in it.
After listening to the debates all
day, we decided that there wouldn’t
be much “success” to it until they at
least told Andrei Y. Vishinsky and his
associates to go hack to Russia where
they seem to think they have a
Utopian Government, but the merits
of which they fail to disclose and
keep hidden behind an Iron Curtain.

divided into two powerful groups—
the United States and Russia.
As we were watching the delegates
leave the United Nations Meeting at
Lake Success, we took the accom
panying picture of Mrs. Eleanor
Roosevelt, who is a member of the
United States Delegation.
We heard her speak at one of the
Committee Meetings, where you put
on a headphone and turn the dial to
any one of six different languages
for immediate translation. Assuming

quite agree with Winston
that Russia may, before
long, withdraw from the United Na
tions, and if so, the organization
would function more efficiently and
more smoothly without the revolu
tionary Communists.

Churchill

John C. Boehm, assistant vice presi
dent of the Manufacturers’ Trust
Company, New York City, has a motto
which hangs in the reception room
of his office, reading: “AAThoever thinks
work is a pleasure can certainly have
a hell of a lot of fun in this depart
ment”.

In the musical comedy “Brigadoon”,
which is one of the favorites now, in
New York, one of the actors says:

SIGNS OF INFLATION. Oyster
stews at the Oyster Bar in the Grand
Centra] Station in New York are now
85 cents and were formerly 60 cents.
Perhaps the oysters have joined the
CIO!

A little over three years ago Wen
dell AVillkie died and we attended a
meeting recently commemorating his
death, which was sponsored by Free
dom House, located in the Willkie Me
morial Building, at 20 West 40th Street,
New York City. Among the speakers
were Harry I). Gideonse, president,
Russel] AY. Davenport, former editor
of Fortune Magazine and Willkie’s
campaign manager, and a number of
others.
A big banner at the back of the
room carried Willkie’s famous slogan
“One World or None”. Our feeling
now is that there will be “ One World”
Northwestern Banker, December, 7947

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Le Fumet de Testudo
Paillettes Dorees
Fruite de Riviere Lucullus
et sa Garniture
Filet Mignon Henri IV
Nid de Pommes Beignet
Pointes d’ Asperges Mimosa
Salade de Floride
Couronne de Glace Praline
aux Dates d’Arizonie
Toutes les Mignardises
Cafe des Princes
SIGNS ALONG THE WAY. “ Eat
and Sleep With Davis—turn right at
the next crossroad.”
“Dalton Chemists, Inc., 57th and
Madison, New York City. Dalton
Hamburger Specialties” .

The behind the scenes operations
of the United Nations are very inter
esting and in the main cafeteria, they
feed between 7,000 and 10,000 people
per day.

“Russia is in Europe, isn’t it?” The
other actor says: “Yes, more and more.
Just cross the English Channel and
turn LEFT.”

they wouldn’t serve you any bread
and butter.
Maybe you’d really like to know
what you can get for $15 at the Wal
dorf. so here it is:

Mrs. Franklin D. Roosevelt greets
friends as she leaves a United Na
tions session.

that someone is speaking in French,
which is No. 3 on the dial, you turn
it to No. 1, which is English, and get
an immediate translation.
Since every one is talking about
the cost of food, we had an interesting
experience the day we had lunch in
the United Nations Cafeteria. We saw
a sign which read “Special 50 cent
Luncheon”, so we thought we would
see what you could buy for that
amount of money, and found the menu
consisted of chicken livers, gravy,
potato, peas, coffee, tea or milk and
any dessert you wished, such as ice
cream, apple sauce or cake.
It so happened that on the evening
of this same day we attended the
annual banquet at the Waldorf of the
Financial Public Relations Associa
tion, which cost $15 a plate with the
menu all printed in French and still

The other noon we had luncheon
with Ray I). Parker, president of
Parker Allston Associates, 116 John
Street, New York City, and while Ray
is an expert in the handling of adver
tising for insurance companies, his
hobby is stamp collecting and he has
between $25,000 and $30,000 invested
in his collection.
P. J. Hebard, assistant vice presi
dent, Continental Bank and Trust
Company, 30 Broad Street, New York,
is Editor-in-Chief of his bank’s Finan
cial Letter, called “TRENDS”.
The bank started sending this letter
to its clients about 12 years ago and
now it is reaching some 90,000 persons
each week.
Printing is done in 3 cities to ex
pedite delivery with 183 banks en
rolled for the service. It circulates in
44 of the states and two more will soon
be added to the list.

When you dine at the Irving
Luncheon Club atop the Irving Trust
(Turn to page 19, please)

GRIM REMINDERS OF WORLD WAR II form a background
o f ruins in these pictures. At left is the author, C. J\ Mortensen,
president of the Nebraska State Bank, Ord, Nebraska, standingbefore ruins adjacent to famous St. P au l’s Cathedral in London.
In the picture at right, Mr. and Mrs. Mortensen are standing
beside a memorial erected on Omaha Beach at Port Winston

C o u n ir

on the coast of France where Allied troops made their initial
north European landing. In the background can be seen one
o f the engineering miracles of the war— an artificial harbor
which was made in England by Americans and taken across the
channel to provide landing and unloading facilities.

y U u n h r r

A Report On a 19-Day Trip to Seven Countries
By C. J. MORTENSEN, President
Nebraska State Bank
Ord, Nebraska
J. MORTENSEN, president of
the Nebraska State Bank at
♦ Ord, Nebraska, and his wife,
Carol, recently enjoyed a 19-day trip
to Europe, during which time they
visited seven European countries, in
cluding England. Mr. Mortensen, in
order that his many friends and bank
customers might share the same ex
periences, wrote a detailed description
of the trip from start to finish.
The N o r t h w e s t e r n B a n k e r is pleased
to present excerpts from a recount
ing of these experiences to its many
readers, since Mr. Mortensen has
viewed in rather intimate fashion the
farming and business economy of
these countries which he visited. Their
trip was made much easier due to the
fact that Mrs. Mortensen was able to
carry on conversation in each country
in French.

England— Two Days
This is a strange country that seems
to combat the march of progress, and
is a country of violent contrasts. In
spite of the fuel shortage, our hotel
room at the Berkeley was heated too
hot for comfort. London streets were
as busy and crowded as ever. The
west end of town is undamaged, but
the east end with St. Paul’s church
rising like a pinnacle, a large area is
practically laid bare from bombs. Yet
no progress has been made in rebuild
ing.
British Scotch whisky is lousy; we
were glad we’d brought some from

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New York. There is no doubt that
the drought of the summer and the se
verity of the winter caused some of
England’s plight. But the main cause
is the failure of the present govern
ment in power to instill the will to
work and produce, especially as the
many regulations remove the incen
tives for personal progress. The coun
try also suffers from the fact that their
pound sterling unit of exchange is
actually worth only 65 per cent in
United States money in comparison
with the government maintained rate.
The country feels that they gave their
all to hold the line against Hitler in
the first two years of the war, and
that our government should continue
cash outlays that will never be repaid
to maintain their economy. This
course will probably become necessary
but it should be done by the American
congress as Operations Rat Hole, and
not in the form of loans that Lord
Halifax so carefully sold the Ameri
can people in the spring of 1946.
Everyone cusses the present
government and it is apparent
that England is entering an eco
nomic crisis that will come to a
head, probably in December, re
sulting in a vote of laek of confi
dence in Parliament, and a subse
quent general election in April at
which time Winston Churchill
will probably head the conserva
tive government in power.

(The English have one great ad

vantage over us—if they don’t like
the party in power—it can be changed
in less than six months’ time.)

The Netherlands— 16 Hours
We arrived at Amsterdam by air at
9 in the evening, thereby causing in
ternational complications, as through
error I got the Swedish envelope
mixed with the Dutch envelope and
tried to use the Swedish kroner instead
of the Dutch guilder, and we had a hell
of a time getting out of the customs.
In the morning, we were impressed
by the industry of the people, and the
progress being made in recovering the
bombed areas. In touring the bombed
areas, our trip took us to The Hague
peace palace, where an aged attend
ant blandly informed us there would
be another war in 1948, if Truman
and Stalin did not get together in the
palace soon. We traveled through
Rotterdam—and finally consumed so
much time that we had to travel back
at a speed of over 60 miles an hour.
Our rented car burned out a bearing—
we hitchhiked to the Amsterdam air
port in barely enough time to catch
our plane for Copenhagen.
Holland, being a small county, has
the advantage of being able to con
trol the currency inflation and the
government has instilled the will to
work for the speedy recovery of the
country. This is exemplified in the
building of the great liner for Atlantic
service—the Nieu Amsterdam. We
(Turn to page 32, please)
Northwestern Banker, December, 1947

The

G re a te s t

Son E a r t h

Where 55 NATIONS Try to UNITE to
Prevent a 3rd World War
By EVELYN and TALBOT PETERSON
Appleton, Wisconsin

HE greatest show on earth” . . .
years ago, to millions of people,
this would have brought to mind
one thing—a circus. Today, “the
greatest show on earth” is set in one
place, Flushing Meadows, Long Island,
the home of the United Nations.
True, there isn’t any cotton candy
for sale, nor is there the bark of the
side show attractions, but all the
glamour, the thrill, and the interest far
surpasses the “big top.” The “ring
master” of this “ show” has in his
“troop,” delegates from 55 countries.
Some of his troop, especially the “Bear
Act” should be locked up in a cage,
but due to the freedom of this show,
they are allowed to roam with the rest.
Not many years ago Flushing
Meadows was a swamp. It is hard to
remember that, as you approach the
spacious, green grounds that surround
the General Assembly building. In
contrast to the greenness of the grass
are the fifty-five white flag poles
sparkling in the sun. The flags are
set in a huge circle in front of the
neat, square lines of the General As
sembly building, which was formerly
a part of the World’s Fair.

A Friend in Need
In order to be one of the 600 spec
tators to get past the gate and into
the inner sanctum of the Assembly
Hall, you must have either phoned or
written for reservations . . . or lest
you be one of the 9,400 refused ad
mittance this day, have a friend who
knows a person who is a cousin, twice
removed, of one of the people working
for the United Nations.
The gate was packed with impatient
people, waiting to have their reserva
tions checked. This squirming, pic
turesque throng was about to witness
the greatest show in the history of
the world, and they knew it. In front
of you could be heard the jabberings

Editor’s N ote: Since all of us are
interested in just how the United Na
tions “ operates,” we asked Mr. and
Mrs. Talbot Peterson to give our read
ers their views after a recent visit to
the
General
Assembly,
Flushing
Meadows, New York. Mrs. Peterson
is the former Miss Evelyn De Puy of
Des Moines, daughter of Mr. and Mrs.
Clifford De Puy.

of the excited French people, punctu
ating their remarks with typical gestulations. On your left were some
very mysterious, cloaked figures . . .
their dark skins being surrounded by
vast folds of white robes. Behind, a
Jewish lady was explaining to one
and all that she was a fighter of Jew
ish Freedom, and doing a fine job of
selling her case. An attractive, dark
eyed Latin American woman was
standing apart from the crowd, lan
guidly surveying this strange and un
usual conglomeration of humanity.
All these people from the four corners
of the world, had gathered here today
because the delegate from the United
States, George Marshall, was to speak.
Once the gates were opened, the
wave of people flooded into the huge
building which houses the UN. You
are immediately impressed with the
quiet pastel colors of the rooms, the
paneled walls, luxurious carpeting,
flattering indirect lighting, the huge,
modern cafeteria, and lounges with
deep, comfortable chairs from which
you can watch the proceedings on the
television screen. All of this serenity
is in deep contrast to the excited, color
ful asortment of spectators, delegates,
advisors, and press people who are
rushing to their seats.

Five-way Radio
The precious pink pass, which all
visitors are issued, was exchanged for

a queer looking gadget about the size
of a pocket size book, with a set of
earphones attached to it. This is your
small one way radio receiver. By
moving the dial you can hear, simul
taneously, the speaker delivering his
address in any one of five languages.
It is also possible to walk any where
in the building with this interpreta
tion headset and hear what is being
said in the Assembly Hall.
As you enter the Conference Room
you are once again impressed with
the artistically soft colors of this huge,
two story room. On either side, jut
ting out at weird angles, are two
stories of dark green, glassed-in radio
and film booths. Your eye is auto
matically drawn to the large blue and
gold map of the world, which covers
the entire two story wall behind the
dais. The rostrum, where Marshall
spoke was directly in front of this.
The great hall was packed. Most
of the 550 chairs provided for dele
gates were filled, and the public sec
tion was jammed. Consulting your
program you can locate the seating
arrangement of the delegations. Which
member is to occupy the first place—
the left corner in the first row—is
determined by drawing lots before the
session. This time, Iran drew first
place and the other nations follow in
alphabetical order. Oddly enough, the
United States and Russia were at op
posite sides of the room. In front of
us were seated the French and the
Greek delegations, with Bidault very
much in evidence. In the middle of
the left row you recognized Eleanor
Roosevelt, looking more attractive
than her pictures, and beside her the
stately figure of Marshall, with his
chair pulled out into the aisle. On
the dais Assembly President Aranha,
of Brazil, pounds the gavel, and speak
ing very slowly in English calls the
session to order. Beside him are

“ As you leave the “'greatest show on earth’ you realize that, unlike any other circus you have ever seen, this
one does not end as you walk out into the sunshine.
Ihe decisions that will be made, can break open upon the
entire world, cage upon cage of bears and jackals— or it can control them and allow the world to move unhampered
by fear of sudden attack. The decision rests with the ring master and his performers.
Northwestern Banker, December, 7947

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seated Secretary General Trygve Lie
and his assistant, Andrew Cordier.

Far From Boring
What was said that day is now his
tory. The audience listened atten
tively, and it was only when the
Uruguayan delegate spoke that the
assembly resembled in any way the
bored, nonchalance of the House of
Representatives. One of the few peo
ple to leave their seats during all the
speeches was Ambassador Pandit
Nehru’s sister, who looked most in
congruous in her ornamental and
beautiful long dress, against the mod
ern backdrop of the room.
After the meeting was over the
delegates gathered in their private
lounges, which are complete with
small, conference rooms and cocktail
lounge. Here was the most exciting
part of the “show.” It is not open to
the public, but we didn’t consider our
selves “the public.” Trying to appear
nonchalant and with the air of a dele
gate preoccupied with the affairs of
the world, we walked past the guards
to the delegates private entrance. The
entrance way was crowded with all
the world famous delegates. As each
black, shiny limousine pulled up one
of the delegates stepped in, with his
retinue of advisors trailing obsequi
ously behind him. One of the most
impressive personages was Emir
Faisal al Saud, of Saudi Arabia, in his
long, flowing white robes. Waiting
for their car were two white uni
formed Russian generals, who looked
more like doormen at a fashionable
hotel.
With our courage mounting we
walked through the entrance way into
the private lounges, bumping into a
short and excited individual. After
the “par-dough” we realized we had
collided with none other than Bidault
of France. He had a friendly smile
and an alertness that was likeable.

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Everyone was heatedly discussing the
bombshell which Marshall had just
tossed into the Assembly. Bits of con
versation could be overheard from the
myopic, tousle-haired delegate, who
thought that war was imminent.
Standing nearby was a peroxide blond,
an official guest from South America,
who could have passed for Mae West,
except for her flashing black eyes.
Between puffs on her long cigarette
holder, she was discussing the
speeches just heard. Some of the
delegates from India, with their bright
red caps, were slowly chatting on
their way to the cocktail lounge. Fol
lowing them, we even managed to get
past the guard that was waiting there,
but only for the sheer amazement at
being allowed to rub shoulders with
these exotic people. Marshall was
holding a press conference, but un

fortunately the DePuy Publications
press credentials had not been issued
to us, so we found one gate we couldn’t
“crash” . After the crowd had thinned,
and most of the delegates had driven
off in their pompous cars, Marshal]
strolled quietly out of the conference.
Behind him were the hurried and
excited newspaper reporters, rushing
to the nearest phone.
As you leave the “greatest show on
earth” you realize that, unlike any
other circus you have ever seen, this
one does not end as you walk out into
the sunshine. The decisions that will
be made, can break open upon the
entire world, cage upon cage of bears
and jackals—or it can control them
and allow the world to move unham
pered by fear of sudden attack. The
decision rests with the ring master
and his performers.—The End.

NEWS AND VIEWS
(Continued from page 16)
Company at 1 Wall St., New York,
each item on the menu is listed by
number, which facilitates your order
ing. For example, the day we were
there, Nos. 1 to 5 consisted of entrees,
6 to 9 main dish, 10 to 13 vegetables,
14 to 17 dessert, 18 to 21 beverage.
Our very charming and delightful
hosts were Orville Miles, assistant
secretary and James M. Tonsmeire,
advertising manager.
In a recent issue of an Omaha paper
someone asked the question, “Has
anyone in Nebraska ever completed
the army’s I.Q. (intelligence quotient)
test with a perfect score?”
Julian B. Baird, president, the First
National Bank of St. Paul, wrote to
the editor that Ray R. Ridge, Sr., vice
president of the Omaha National

Bank, passed this test with an abso
lutely perfect score. Mr. Baird says:
“Mr. Ridge was enrolled with me in
the Fourth Army Orientation Course
at the Command and General Staff.
Fort Leavenworth, in 1943. He com
pleted his test there with a perfect
score and I distinctly remember that
the officers giving the test stated that
they had never heard of anyone mak
ing a perfect score before. I also re
call Mr. Ridge completed the test in
the shortest time of anyone in the
class.”
In our recent travels here and there
we picked up these interesting items:
On a signboard. in Cincinnati: “ Drive
carefully—Heaven can wait.” In Ham
ilton,"-Ohio-, where the Herring Hall
Marvin and the Mosler Safe companies
(Turn to page 25, please)
Northwestern Banker, D ecem b er, 1947

A e q u ir e s
A p p o in t m e n t

M unu
io u 'u

H. B. Buckham & Company, Des Moines, Has Franchise
For Kaufmann De Luxe Aluminum Combination
Storm and Screen Windows

b . buckham and com pany,

established in Des Moines in
* 1926, shows continued growth in
the building field. The Buckham Com
pany supplies finished materials and
installs new equipment for moderniza
tion and for new construction in both
the domestic and commercial building
groups.
In acquiring the manufacturing fran
chise in Iowa for the Kaufmann De
Luxe Windows, Buckham and Com
pany add another famous line to an
already famous group of nationally
known and recognized brands which
they represent in the building field.
Kaufmann De Luxe Windows are a
product of years of engineering re
search and experiment, and present to
the public and to designers and build
ers of new construction an all alumi
num window that is years ahead in
design, efficiency and mechanical ex
cellence. Made of heavy gauge alumi
num, possessing features and mechani
cal precision of operation which ap
peals to modern home builders and to
building modernization and construc
tion, these windows are now recog

nized as the foremost in the field.
The Buckham Plant at 410 16th
Street in Des Moines has been com
pletely remodeled to accommodate the
new machinery necessary for line pro
duction of custom construction and ah
operations are under the supervision
of schooled mechanics. Selected per
sonnel, including trained engineers
and consultants familiar with every
aspect of window conditioning, make
up the sales and production divisions.
The finished product as it comes off
the production line is a shining ex
ample of man’s genius for producing
things for better living and the accept
ance of these famous new windows is
ample proof that the public and build
ing experts recognize and demand
quality with advanced design in an
age where quality goes hand in hand
with modern progress.
The Buckham Company are special
ists in many other fields devoted to
better living, outstanding in this group
being the Acoustical Engineering Divi
sion. Representing the National Gyp
sum Company as authorized consult
ants and installation experts they have

PRESIDENT of the company is H. B. Buckham, shown above seated at his desk
in his modernly designed office.
Northwestern Banker, December, 1947

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completed hundreds of acoustical in
stallations all over the state of Iowa.
Among other lines represented are
Parkay floors for domestic and com
mercial purposes, asphalt tile floors,
Lustron architectural porcelain metal
tile building fronts, nationally known
Veos Tile for modern bathrooms, kitch
ens, rest rooms in homes and commer
cial buildings, Complete bathroom in
stallations in unit construction or com
plete custom installations are also
available, as well as famous Kitchen
Maid and white steel kitchens in stand
ard assembled units or custom built
groupings. Installations such as these
number in the hundreds in private
homes, commercial a n d industrial
buildings and institutions. Also not
able among Buckham installations are
the thousands of Rock Wool Insulation
jobs completed since organization.
An Iowa institution, this progres
sive, modern-thinking organization is
continually on the alert for things that
make for better living, and things and
methods that improve the conduct of
business.
H. B. Buckham is the president of
the company; Ralph N. Smith is vice
president and treasurer, and Mrs. I. V.
Johnson is secretary. Seventy-one
men and women comprise the person
nel, including engineers, designers,
consultants—all specialists—rendering
a specialized service in the best inter
ests of the Buckham customer . . . a
specialized service made possible by
the continuing exhaustive research in
the field of building for better living.
The fleet of eleven trucks, each de
signed and manned to do a specific
job are a familiar sight on the high
ways all over the state.
The name Buckham is recognized in
Iowa for a professional service in the
building industry and illustrates the
progress of an institution with the
highest ideals in the transaction of a
business highly technical but with a
close human touch, typical of its mod
ern management and personnel.—The
End.

21
"W t

OVERNIGHT
•
•

COLLECTION
a n d
TRANSIT
SERVICE .

AIRMAIL- Coast to Coast
RAIL MAIL-Wthin 500 Miles

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Federal Reserve Bank of St. Louis

it Our central location and mail facilities enable us
to provide quick service on your collection and
transit items.

it Evening departures of air and rail mail give over
night delivery to east and west coasts, and to points
on both borders.
The Omaha National Bank by virtue of these advan
tages has developed unusual speed and efficiency
in handling items for correspondents.
Inquiries are invited.

The Omaha
National Bank
M em ber, Federal Deposit Insurance Corporation

Northwestern Banker, December, 1947

Rab® Elected Director
Harvey D. Gibson, president, has
announced the election of William G.
Rabe, a vice president of the bank, to
the board of directors of Manufactur
ers Trust Company.
Mr. Rabe started his business career
in 1916 with the Liberty National

souri, and occupies the six-story mod
ern building at Eighteenth and Grand
which was vacated by City National
Bank and Trust Company in its move
to its new home at Tenth and Grand.
Grand Avenue Bank has an initial
capitalization of $625,000, consisting of
$250,000 in capital and $250,000 in
paid-up surplus and $125,000 in paidup undivided profits.
The president of the new bank is
R. V. Aycock, president of the Vaughn
Investment Company and for the last
twenty-five years a director of City
National Bank and Trust Company of
Kansas City. Vice president is John
C. House, and the cashier is M. H. Ely,
formerly of City National.

Trust Officer
The board of directors of the Mer
cantile-Commerce Bank and Trust
Company have appointed George F.
Torrey as trust officer of the bank.
Mr. Torrey was formerly associate
trust officer.

Fred B. Brady
W IL L IA M G. RABE
Vice President and Director

Bank of New York and became asso
ciated with the Manufacturers Trust
Company in 1931, and was elected a
vice president in December of that
year. Mr. Rabe is a native New York
er and is also a director of The Amer
ican Arbitration Association; Aeolian
Company; American Piano Company;
the Pittston Company; Clinchfield Coal
Company; U. S. Trucking Company;
Hershey Creamery Company and the
Shuron Optical Company. He is also
a director of the West Side Chamber
of Commerce, as well as a Trustee of
Fryeburg Academy, Fryeburg, Maine,
and the Storm King School, Cornwallon-the-Hudson, New York.

New Bank

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Federal Reserve Bank of St. Louis

Philip H. Willkie, 27-year old son of
the late Wendell L. Willkie, Navy vet
eran and probably the youngest bank
director in the country, was among

P H IL IP H. W IL L K IE
Indiana Bank Director

The First National Bank in St. Louis
has mailed checks totaling $1,519,749
to 18,826 members of its 1947 Christ
mas Savings Club. This was the
largest club in the history of the bank.
Accounts increased 21 per cent in
number and 29 per cent in amount
over 1946. The growth for several
years has been substantial. For in
stance, the 1941 Club had 10,719 mem
bers who received a total of $510,571.

Northwest ern Banker, December, 1947

Youngest Director

Funeral services for Fred B. Brady.
74 year old, vice president of the Com
merce Trust Company of Kansas City,
twenty-three years until he retired
earlier this year, died last month at
his home there.
Mr. Brady was born in Greenfield.
Ohio, and moved to Missouri with his
family when 12 years old. He at
tended school in Chillicothe, Missouri,
and was graduated from business col
lege in Poughkeepsie, New York.
In 1900 he became business manager
of the Chillicothe Normal school, a

Christmas Savings

Last month, Kansas City, Missouri
had a new bank. It is called the Grand
Avenue Bank of Kansas City, Mis

position he held until 1912 when he
became vice president of the People’s
Trust Company in Chillicothe. He
moved to Kansas City in 1919 after
accepting a position as special repre
sentative for the Commerce Trust
Company.
In four years he moved up through
the positions of assistant cashier and
assistant vice president to that of vice
president in January, 1924.
For many years he was superin
tendent of the bank's relations with
correspondent banks in Missouri,
Iowa and Arkansas. Mr. Brady was
president of the Missouri Bankers as
sociation in 1929 and was vice presi
dent of the organization in 1928 and
treasurer the year before that. He
was president of the state bank divi
sion of the American Bankers associa
tion in 1935 and vice president in 1934.

FRED

BRADY

ninety-seven students who graduated
from Columbia’s Law School this fall.
A member of the board of Rushville
(Indiana) National Bank, Mr. Willkie
holds three academic degrees, Bach
elor’s from Princeton in 1940; Master
of Arts in History from Harvard in
1941 and LL.B. from Columbia. At
Princeton University he was business
manager of the Daily Princetonian and
won the Walter Hope debate prize.
He was also voted by his class as the
most likely to succeed. At Columbia
Mr. Willkie worked toward the degree
of Master of Business Science and

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Federal Reserve Bank of St. Louis

J , f r i a r y is fou r. . . she starts Sunday School
next year. . . she’s asked Santa for a doll that talks. Johnny, her
brother, was six last A ugust... is in the second grade...he will find
a two-wheeler under the tree.
What kind of a world will they live in when Mary is fourteen
and Johnny is sixteen—in 1957?
The answer depends on what each of us does each day for the
next ten years— for the future does not suddenly spring up with
out warning. . . It results from the daily actions of every single
one of us.
Each of us can help to build a happy and peaceful future for
those we love by thinking and talking constructively. . . by being
open-minded, tolerant, forward-looking... by taking part in com
munity activities . . . by bearing the responsibilities of a good citizen.
CH RISTM AS 1947

. . . Bankers Trust Company, New York.

Northwestern Banker, December, 1947

C it y

N a t i im a I in

THE CULMINATION of plans that were in the making be
fore the late war started were realized last month when the
City National Bank and Trust Company of Kansas City moved
into its new banking quarters at Grand Avenue and Tenth
Street. The newest bank building of any size which has been

served as president of his first-year
class and was Chief Justice of the
Campbell Moot Cort.

completed postwar, the City National supplies to its bank per
sonnel and to its customers lobby arrangement and business
facilities which are the last word in efficiency.
Pictured at the left above is the exterior o f the new building,
and at the right is shown a small section of the customer lobby.

Mr. Willkie recently declined an op
portunity to run for Congress in Indr
ana because of his desire to establish

himself as soon as possible in the
practice of law.

Vice President

HANDWRITING IS A LOST ART
O r so say the new scasters !
Recent surveys, as reported by
the press, indicate that penman
ship in these United States has
hit a new low, with prospects poor
for improvement. The nadir of
le g ib ility w ou ld appear to be
signatures . . . more especially,
signatures on bank checks.
This isn’t news to the many
thousands of bank people who
for years have been reading those
“ scrawls o f character” that pass
for signatures. How they do it is
a mystery to us, but it’s time
they got a little relief. The printed
name on a bank check provides a
double check in sorting. If there
is any doubt about the signature
a quick glance at the imprint will
confirm or correct the reading of
the customer’s name and speed
up the sorting and filing.
Surprisingly e n o u g h , banks
can have this convenience at
no cost at all. E veryone likes

John D. McCaskey, president of the
Home Bank of Savannah, Missouri,
the past nine years, has been elected
a vice president of the First National

to see his name in print and will
gladly pay the small cost for two
hundred P erson alized Checks.
Then too, banks save the cost o f
p a s s b o o k s , c o v e r s a n d s to c k
checks . . . and at the same time
make their customers happy. Sel
dom does a p ro d u ct fu lfill all
these needs but our Personalized
Checks fully demonstrate their
ability to do so. Thousands o f
banks from coast to coast are
enthusiastic about them and are
selling them vigorously to their
customers.
W e w elcom e inquiries from
bankers who wish to study the
P erson a lized C h eck program .
Over a period o f several years it
has been our privilege to work
with banks large and small, and
we have accumulated consider
able amount o f factual informa
tion which might be o f real value
to those now contemplating the
program.

JO H N D. M cC A S K E Y
W ith St. Joseph Bank

Bank of St. Joseph, and assumed his
duties there last month. The an
nouncement was made by George E.
Porter, president of the First National.
Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

“While Mr. McCaskey’s duties will
be general,” Mr. Porter said, “he will
be particularly active in bank corre
spondent work.”
Mr. McCaskey, who is chairman of
Group Three of the Missouri Bankers
Association, was graduated from the
Massachusetts Institute of Technology
with high honors in 1931. He has
been actively engaged in banking
since that time, except for four and
one-half years spent in the military
service during the war.

■ ■

FOCAL POINT
for Co-ordinated Regional

Opens Chicago Office
Wheelock & Cummins, Inc., of Des
Moines, Iowa, announce the opening of
a Chicago office at 135 South La Salle
Street, Chicago, on December 1, 1947.
Wheelock & Cummins, Inc., have
been in the investment securities busi
ness acting as distributors and under
writers of municipal, corporate and
public utility securities for the past
twenty-one years.
David N. Danielson, formerly with
F. S. Moseley & Co., and Edgar F.
Grimm, formerly of Kidder, Peabody &
Co., will be in charge of the Chicago
office, and Roy W. Leriche, who has
been identified with the company since
its conception, will be in charge of the
Des Moines office, which will be the
home office, located at 200 Equitable
Building, and the above three men con
stitute the principals of the organiza
tion.
Through the association with the
company by Mr. Danielson and Mr.
Grimm, who have both had broad ex
perience in the investment securities
field, and the opening of a Chicago
office, the company will be in a position
to better serve banks, insurance com
panies and individual investors in Iowa
and the middlewest.

Service

MI LWAUKEE
Wisconsin's Bank for Banks
This outstanding bank — established
in 1853 — serves as Milwaukee de
pository for over 85 per cent of all
the banks in Wisconsin!

W ith unparalleled correspondent “ coverage

Wisconsin, the First Wisconsin National Bank
of Milwaukee is not only “ the point of prompt
collection” for Wisconsin checks and drafts, but
also the focal point for unique Co-ordinated
Regional Service keyed to the needs of national
corporations operating branches, sales divisions,
distributorships, retail outlets or other units in

NEWS AND VIEWS
(Continued from page 19)
provide safes for thousands of banks
and business houses, there is a tavern
called the “Atomic Age.”
If you are interested in tongue twist
ers, also in Cincinnati in a high pow
ered boxing match, the two partici
pants were Pat Iacobucei and Joe
Discepoli.
Herbert P. Snyder, vice president,
the First National Bank of Chicago,
recently made a business trip to Eu
rope in the course of which he trav
eled in Germany, Holland, Belgium,
Sweden, Denmark and England, spend
ing most of his time, however, in Ger
many.
He has written a most interesting
booklet entitled “Venture and Adven
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Federal Reserve Bank of St. Louis

this area.
Bankers as well as business executives are invited
to write for further information.

FIRST WISCONSIN
NATIONAL BANK
o f M ilw aukee
MEMBER

THE

FEDERAL

D E P O S IT

INSURANCE

C O RPO RA TIO N

Northwest ern Banker, December, 1947

26
ture in Post-War Europe,” which has
been published by the Foreign Bank
ing Department of the First National
Bank and is being distributed to many
of the bank’s friends and customers.

Bants G irls St. L ou is Cham ps

When the toll gates were removed
recently on the Missouri river bridges
between Omaha and Council Bluffs,
the principal speech of the day was
delivered by J. Francis McDermott,
vice president, the First National
Bank of Omaha. The celebration was
staged by the Board of Governors of
Ak-sar-ben at a luncheon and at which
were present governors from both
Iowa and Nebraska, United States
Senator K. L. Wherry of Nebraska and
dignitaries from all walks of life.
Banker McDermott spoke on “ The
Pathfinders, the Pioneer, and the Peo
ple,” delivering his address in the
customary fluent McDermott style
which the many bankers who have
heard him speak know is unsurpassed
anywhere so far as eloquence is con
cerned.

In the Grind
1st moron: What would you get if
you put a yellow canary in a meat
grinder?
2nd same: Shredded tweet.

;%?

■

FOREIGN REMITTANCES
W e specialize in forwarding
of funds abroad for our
banking friends with or
w ithout Foreign D epart
ments. Our remittance serv
ices include com m ercial,
benevolent and living ex
pense payments abroad by
cable, mail or airmail.
E xperience developed
over the years, and close
friendly relationships with
w orldw ide correspondent
banks are available to assist
domestic banks to
establish orextend
their own remit
tance service. W e
welcome your in
quiries.

THE ST. LOUIS Muny League Girls’ Softball Championship was won this year
by a team o f employes from Mississippi Valley Trust Company. This is the first
bank team in the city to win this distinction. Together with other Muny League
champions, members o f the team were honored at a victory banquet. The dinner
was sponsored by the Municipal Athletic Association, and the team trophy and
individual championship pins were presented at that time.
Shown in the above photograph are: Bottom row, left to right: Evelyn Limpert,
Dorothy Zaccanti, Rose Cooper, Betty Howard and Dorothy Metzger. Center row:
Eleanor Bausback, Dorothy Hinshaw, Doris Campbell, Shirley Ruf and Viola
Laurenti. Top row: Sara Greco, Coach Emmett Caldwell, Rose Magac, Manager Roy
Anderson, Pauline Gish, Coach William Sehroer and Marie Albers.
Mr. Schroer
is vice president of the Mississippi Valley.

T77?i?

Public National
BANK

AND

COM PANY

TRUST
NEW

YORK

Main O ffice: 37 Broad Street
Member Federal Reserve System
N ew York Clearing House Association
Federal Deposit Insurance Corporation

S fii& n e e ïb ¿ r i ¿ P ite c ia / S fe fa w c e

Central National Ba n k
IN

C H IC AG O

ROOSEVELT RO AD AT HALSTED STREET
M em ber F e d e ra l D ep osit In su ra n ce Corporation

Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

•

M em ber F e d e ra l R e se r v e System

HOW A BAN KER LOOKS A T

INSTALLMENT FINANCING
(Continued from page 15)
the net return prior to 1942. It seems
to me these factors preclude the pos
sibility of increasing dealer reserves
as longer term obligations develop as
a result of the elimination of Regula
tion W. From the dealer’s standpoint
there is no logical reason to ask for
additional reserves on longer maturity
paper. Certainly there is no more
work involved on the dealer’s part in
arranging for a longer maturity deal,
and experience has demonstrated that
the longer credit term soundly passed,
with standard down payment carrying
a smaller monthly obligation, involves
no additional credit risk. I believe
finance companies generally, as a re
sult of experience, are quite conscious
of their cost of operation, and other
credit agencies newer in the field
should have an accurate analysis of
such costs as acquisition, collection
and interest on the money employed.
A major expense in the conduct of any
consumer credit operation is the cost
of acquisition. Advertising and pro
motion are necessary, and experienced
personnel is costly. The credits made
represent a large cross-section of any
community and not merely the higher
type of risk. This requires proper
servicing with intelligent, persistent
collection effort, which adds material
ly to the cost of operation. While loss
es have been negligible during the
period of our rising economy, substan
tial losses may be experienced during
periods of unemployment and a de
clining economy, which means that
adequate reserves must be set aside
out of income. Charges to the con
sumer, therefore, must provide for cost
of operation, adequate reserves and
a reasonable profit.
The extremely low rates I have re
ferred to are apparently the result of
a belief that reduced rates acquire
business. The experienced finance op
erator does not subscribe to this the
ory, for he is aware that the rate, so
long as it is reasonable, has never
been a primary consideration. It is
intelligent and understanding service
in handling the mine-run paper of the
consumer and the willingness to serv
ice the distributor and dealer in their
financial requirements that will dev e 1o p installment credit business
There is a great hazard in attempting
to acquire volume through reduced
rates. The finance industry has al
ways been highly competitive and the
threat of greater competition in the
period ahead may result in such a
scramble for paper that rates may
well be broken below their present
level, the lowest point in the history

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Federal Reserve Bank of St. Louis

be hazardous to attempt to make any
prediction beyond a relatively short
period. When we try to take a longer
range look at interest rates we are,
frankly, getting into hazy atmosphere.
We know too little even now about
the kind of postwar world in which
we shall live, and the pattern of our
own economic doctrines is not clearly
outlined. Low interest rates prevailed
in this country for some years before
we entered the war. They developed
under peace conditions and not as a
war finance policy. Excessively low
rates have created some injustices as

of the industry. This certainly will
be true unless the industry employs
self-restraint and adheres to sound
credit practices and policies. Obvi
ously, excessively low rates may not
permit the development and mainte
nance of adequate reserves which are
so necessary in any soundly-managed
installment finance operation.
The rates you charge your clients
are obviously tied in with the general
money market so the course of bank
interest rates in the future should at
this time be of particular importance
to credit agencies. It would, of course,

N10ISE R eduction
For Offices, Schools,

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E F F E C T IV E SO UN D C O N T R O L A T LOW CO ST

O ver

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H. B. BUCKHAM &C0 .
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410-20 S IX T E E N T H STREET

DES M O IN E S, IO W A
Northwestern Banker, December, 1947

28
well as adverse social and economic
effects. We recognize that the large
public debt creates an unprecedented
condition that will have a very im
portant influence on our monetary
policy.
As you undoubtedly know, the Treas
ury has been engaged in a program
of debt retirement out of surplus cash
and the withdrawal of war loan depos
its from the banks. This program is
nearing completion and in the process
bankers disposed of three-eighths of
1 per cent ninety-day bills and seveneighths of 1 per cent one-year cer
tificates of indebtedness in order to
meet the calls made on their war loan
deposits. The buying support on the
ninety-day bills was withdrawn in
July, which has resulted in these bills
being quoted currently to yield about
.8 per cent. Shortly after the unpeg

ging of the ninety-day bill rate the
Treasury offered ten-month certificates
of indebtedness at seven-eighths per
cent and at about the same time sold
twelve and one-half month notes car
rying an interest rate of 1 per cent.
Following the recent trend in slowly
rising interest rates for government
and private securities, the Treasury in
September announced an issue of oneyear 1 per cent certificates of indebted
ness in exchange for an issue of seveneighths per cent certificates which ma
tured October 1st, last, and on Octo
ber 20th announced an offering of
eleven-month certificates carrying a
coupon of 1 per cent, which was fol
lowed with an offering more recently
of thirteen and one-half month notes
at lVs per cent. With the increased
yield on short term governments and
as the seven-eighths per cent certifi-

«¡H

I he Central Building o f the St. Louis Public Library is part of
the architectural group forming the M em orial Plaza. The
Library contains approximately 960,000 volumes, has 22 branches,
104 sub-stations, and traveling libraries operated in connection
with the public schools.

AAany banks find an account in
centrally located St. Louis both
convenient and useful. St. Louis
largest bank invites your account

cates were disposed of by the banks,
the low rates heretofore quoted on
bank acceptances, commercial paper
and brokers’ loans against government
securities were no longer attractive to
the banks. This resulted in a rather
general increase in rates to 1% per
cent and IV2 per cent in these types
of loans.
There is cumulative evidence of a
growing demand for working capital
funds which the commercial banks
and finance companies in their normal
functions will supply. Since capital
markets have not been too receptive
to new financing in recent months, a
portion of fixed capital needs are being
met by short term commercial bank
borrowings, to be refunded later
through capital financing. These de
mands on commercial bank funds have
created considerable pressure on pres
ent low rates, already evidenced in
slightly higher rates on long term
loans, bonds and some short term
credits, and may result in an earlier
general increase in short term com
mercial bank rates than we can now
foresee. I believe it most likely that
the effect of supplying these working
capital demands will cause the banks
to examine more closely into balances
maintained by borrowing accounts and
probably result in more exacting bal
ance requirements in order to help
meet the increased demand for funds.
—The End.

DEAR EDITOR
(Continued from page 9)
“ 1 have long since believed that magazine
articles should be informative and I have
said many times that good advertising was
merely the giving of dependable information
to the public. After all, the public under
stands very little about banking and all of
us who are privileged to contribute to maga
zines can do much toward acquainting the
public generally with banking as it is pres
ently constituted and we should never neglect
an opportunity to do so because the more the
public knows about banking, the more
friends banking will have with the public.
“ It is always nice to hear from you, and
here’s wishing you a continuation of good
health so that you can carry on the work of
the N o r t h w e s t e r n B a n k e r . Again my con
gratulations upon your October edition.”
A. II. Furnish, Vice Presi
dent, The Louisville Trust
Company, Louisville 1, K en
tucky

Dividend

MEMBER

FEDERAL

DEPOSIT

Northwestern Banker, December, ¡947

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Federal Reserve Bank of St. Louis

INSURANCE

CO RPO RATIO N

Directors of Northwest Bancorporation have declared a dividend of forty
cents per share, plus a special divi
dend of twenty cents per share, on
1,547,767 shares of stock outstanding,
payable November 25, 1947 to stock
holders of record as of the close ol
business November 10, 1947.

IN V E S T M E N T S

W h at
i s H appening
in the 3iu aieipal M a rk et
Credit Only a Modest Part of the Return to Income During
the Early Years, and Then the Full Return During the
Final Period to Maturity
By RAYMOND TRIGGER
Investment Analyst
New York City
OSSIBLY to the point of weari
someness, this column has for many
months harped on two themes.
With respect to governments, the ad
vice has been to shorten maturities;
with respect to corporates, upgrade
the portfolio. The behavior of the
bond market in recent weeks has
justified the ultra-conservative coun
sel proffered.
It may well be that there are some
attractive buys in the market at this
time, but it is prudent to bear in mind
that the bond market, once it starts
to roll, is in the habit of persisting
in a given course. It is also as well
to recall that there will always be
some laggards in a downtrend and that
the market as a whole is not likely
to be stabilized, much less reversed,
before the slowest movers have been
brought into line. The sum of this
is, of course, that there is no evident
need to take immediate steps to in
crease income, either by lengthening
the average maturity of governments,
or by shifting from top-grade to the
next best corporates.
All competent observers are agreed
that the monetary authorities have
the power to hold governments at
any predetermined level within rea
son. They have not agreed on the
desirable level and some forecasters
now look a little foolish in the light
of actual developments. Even though
some guesses were too optimistic, how
ever, it does not follow that the au
thorities will abandon the market en
tirely in view of the enormous size of
the federal debt and its still unwieldy
composition.

Commericial Loans Up
During the months in which caution
was consistently counseled it was sug
gested in this space that most com
mercial banks would encounter a
growing demand for business and in
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Federal Reserve Bank of St. Louis

This is a discussion of factors
affecting your investment port
folio. If you have any questions,
or if you find yourself in dis
agreement with comments here
in, your letters, addressed to the
NORTHWESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir
cumstances will the editor of this
column discuss specific securities.

dustrial loans. This more profitable
activity was expected to partially com
pensate for the necessarily modest
earnings from the conservatively man
aged bond portfolio. Commercial loans
are at record high levels and rates
charged for these advances are being
steadily inched up. This is gratifying
of itself, but it has further significance
to the investment portfolio manager.
It means that he is not likely to be
urged to put mounting deposits at
work by expanding the bond portfolio.
That probability is another reason for
not rushing headlong into the bond
market.
Finally, a government bond portfolio
that is weighted in favor of the short
er obligations is steadily earning a
little more as short-term rates creep
upward. The authorities have, indeed,
moved quite rapidly with this part of
the Treasury’s program and threemonths’ hills now yield close to 1 per
cent. A return of 114. per cent on
12-months’ certificates, as earlier fore
cast, appears inevitable, perhaps in
the first quarter of 1948.
The purge of recent weeks has been
felt in practically all sections of the
bond market. Even “ eligibles,” of
which so much stability is expected
because of the relatively limited sup

ply, finally gave way. Unexpected,
perhaps, but entirely logical was the
switching by some non-bank holders
to unrestricted bonds. This pressure
was reflected in the price of eligibles,
of course.
Corporates came in for their share
of the setbacks, too. Some of the finest
names in the country figured in ex
tremely sticky public offerings. Ironi
cally enough, the same investment
hankers accused of conspiring to take
an unfair share of “riskless” business
found themselves with some unpleas
antly large losses. Ordinarily, losses
are a token of at least a hidden risk.
Something on the order of $18,000,000 Commonwealth of Pennsylvania
bonds, certainly a top credit in the
tax-exempt field, were unsalable at
the original offering scale. When the
syndicate broke up, some of the long
est maturities were repriced at a con
cession equivalent to almost $80 a
bond, or perhaps ten times the profit
originally contemplated by the “suc
cessful” bidders.

The Municipal Market
In the municipal market, however,
dealers usually find that a thoroughly
realistic repricing will result in sub
stantial sales. The Pennsylvania bonds
just mentioned, for example, when
priced to yield 1.70 per cent, provide
an income equal to that to he had
from a taxable corporate yielding 3.86
per cent to an individual with an in
crease of around $25,000 a year. It
can hardly be denied that such a re
turn from such an issue is a bargain
these days.
Commercial banks, too, are showing
more interest in municipal bonds.
And well they may with the market
back to the lowest point in almost five
years. Otherwise appraised, the taxexempt yield index, compiled by The
Bond Buyer, of better than 2 per cent
Northwestern Banker, December, 1947

Investments

contrasts with a record low return of
1.29 per cent less than two years ago.
The wisdom of commercial bank
purchases of longer-term municipals
may be debated as a general principle,
but it really simmers down to a ques
tion that can only be intelligently con
sidered in the light of each bank’s par
ticular situation. Where it is deemed

proper, however, there are additional
precautions that may prudently be
employed.
Ordinarily, when a bank buys a
municipal maturing in 18 years on a
2.25 per cent basis (which is in line
with current markets) the bank will
credit earnings with 2.25 per cent each
year. Provided the bond is held to

WE ARE PLEASED TO ANNOUNCE THE ASSOCIATION
WITH US AS OFFICERS IN CHICAGO
DAVID N. DANIELSON
EDGAR F. GRIMM

In the example outlined, a return
of 1.40 per cent for the first six years
would be about what a bank might
expect from a bond due in six years.
If only this is credited to income, a
substantial write-down of original cost,
and correspondingly generous provi
sion against possible price declines,
would result. If 2 per cent is credited
to earnings during the middle six
years, the bonds, at the end of 12
years will stand on the books at a
price that provides a return of 3.35
per cent, free of tax, for the final six
years.
In sum, this method provides a fair
return for the early years and a sur
prisingly liberal yield in the later
ones. A collateral advantage under

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DES MOINES, IOW A
CHICAGO TELEPHONE
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TELETYPE CG 245

maturity and intervening price fluctu
ations can be disregarded, this works
out as anticipated.
Actually, though, any change in
yields from tax exempts generally
translate into fairly wide swings in
price during the earlier years, gradu
ally narrowing as maturity approach
es. Thus, it has been suggested that
the bank making such an investment
take only a modest part of the actual
return into income during the early
years, a little more during the middle
years and the full return in the final
third of the period.

DES MOINES
PHONE 4-7158
TELETYPE DM 184

WAREHOUSE RECEIPTS LOANS AGAINST INVENTORIES
Warehouse Receipts Loans offer a practical solution of the financing problems of
those concerns among your customers whose volume has outgrown their working
capital.
Dormant assets represented in their inventories of agricultural products, raw ma
terials or finished products can be collateralized through a warehouse established by
us right at your customer's own plant.
A secured loan . . . a Warehouse Receipts Loan . . . enables you to lend in excess of
open-line credit limits, safely and profitably.
Without obligation, our representative will call on request and explain
how our Field Warehousing service provides collateral against inventories
on the owner's premises.

ü>t. 3ßml terminal KHarefjouöe Co,
ST. PAUL, MINN.
— Iowa Office —

— Other Offices —

515 Iowa-Des Moines National Bank Building

MINNEAPOLIS MILWAUKEE CHICAGO DETROIT
NEW YORK BOSTON BUFFALO
INDIANAPOLIS
PHILADELPHIA
PITTSBURGH
SYRACUSE
DALLAS
MEMPHIS
ATLANTA
ALBANY, GA.
CHARLOTTE
JACKSONVILLE
SHREVEPORT

DES MOINES
TELEPHONE 2-1208
T. C. CANNON, DISTRICT MANAGER

Northwestern Banker, December, 1947

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Investments

current conditions is that the longerterm municipals are easier to buy
and, relatively, lower priced. It is in
the ten-year, or “bank range,” that
demand is keenest, bonds fewest and
prices highest.

Tax Exemption
From time to time, the subject of
removing the tax exemption enjoyed
by municipalities, states and their po
litical subdivisions is revived, usually
by the federal tax collectors who, un
derstandably, feel that they are barred
from a lush field. Up to the present,
the supporters of “states’ rights” have
always rallied to the defense of the
issuers of tax-exempt obligations.
Should, however, this privilege ever
be taken away, not even the most
rabid advocates of federal taxing pow
ers envisage any change in existing
exemption. Consequently, if the states
and their political subdivisions lose
their right to issue tax-exempt obliga
tions at some future time, all out
standing exempts would immediately
be more valuable because there would
be no more thereafter and outstanding
exempts are steadily maturing.
It may be, of course, that taxes will
be significantly lowered in the months
ahead and, to that extent, lessen the
value of the tax shelter now afforded
by municipals, but this is far from a
certain prospect and, indeed, if the
U. S. is to bring about the economic
recovery of large sections of the world
along the somewhat grandiose lines
indicated by the most widely publi
cized proposals, it is, rather, a most
unlikely prospect.
In any case, the rise in yields from
municipals over the past 20 months
or so, plus the conservative account
ing method described in an earlier
paragraph, suggest that a growing
number of commercial banks may find
it profitable to look into the subject.
During the early months of 1948, it is
probable, two important states—New
York and Ohio—will be coming to
market with large offerings of taxexempt bonds with which to pay veter
ans’ bonuses. Since it is likely that the
market will not have recovered a great
deal by that time, and because of the
great sums involved, they may be
most “realistically” priced.

Inflation
Inflation is a subject that will be
aired in the nation’s capital for months
to come. The Federal Reserve, it may
be almost positively assumed, will seek
more powers over commercial bankers.
On this subject, the conclusions
given in a recent study by The Na
tional City Bank of New York are
deserving of wider attention, both be
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

INVESTM ENT COUNSEL
Individuals, Institutions, Trust Accounts and Estates

RICHARD R. ROLLINS,

In c .

Representing

SHERIDAN - FARW ELL & MORRISON,

In c .

INVESTMENT COUNSELLORS
E IG H T - S O U T H M I C H I G A N A V E N U E

C h ic a g o 3

Des Moines Office
405 Bankers Trust Building
Northwestern Banker, D ecem b er, 1947

6ì
Statement of Condition, October 6, 1947
RESOURCES
Cash and Due from Banks........................................................ $ 59,636,042.22
U. S. Government Securities......................................................
53,530,140.89
(Including those pledged 510,137,000.00)
Other Bonds c r d Securilie ........................................................
6,915,160.97
Federal Reserve Bank Stock....................................................
303,000.00
Loans and Discounts................................................................... 88,481,4SS.55
Customers' Liability on Acceptances and Letters of Credit
678,544.65
Real Estate ....................................................................................
201,728.99
Accrued Earnings Receivable (Net)......................................
557,984.63
Overdrafts
....................................................................................
20,332.43
Other Resources .........................................................................
82,670.08
$210,434,071.44

LIABILITIES
Capital ............................................................................................S 6 , 000 , 000.00
7,307,199.77
Surplus arid Undivided Profits................................................
Accrued Interest, Expenses and Taxes Payable (Net) and
1,123,939.27
Other Reserves .......................................................................
678,544.65
Acceptances end Letters of Credit..........................................
231,432.48
Other Liabilities ...........................................................................
Deposits:
U. S. Government and
Other Public Funds........................... $
” r
Other Deposits ....................................... 188,6"
104,792,335.27
3210,434,071.44

For prom pt and dependable
correspondent service that
h its the m a rk consistently,
here and abroad, banks and

is * " “
a fte r

llSfy,

Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

bankers areinvited to discuss
their reqnirem e:..s w ith . . .

T he C O N T I N E N T A L
BANK

& TRUST

COMPANY

o f N EW YORK

CO B ro ad S t r e e t , N ew Y o rk 1 5 ,N .Y .

cause of the high qualifications of this
institution and because of the kind
words bestowed on the authorities and
commercial bankers. A paragraph fol
lows:
“The task of the American authori
ties is by no means easy. A balanced
budget, with a surplus available for
retirement of bank held debt—which
we have—is a necessary condition to
avoidance, in the present-day en
vironment, of the more exaggerated
forms of inflation that are to be wit
nessed in so many other countries.
The public itself, the banks and other
investment institutions, have demon
strated self-restraint to a degree that
is remarkable under the circum
stances. Our Achilles’ heel lies in ex
cessive reliance on the banks, and on
the institutional investor, for funds
that ought to be provided through
equity financing. Viewed in this light,
the upward readjustment in the cost
of long-term borrowings, and the adop
tion by the authorities of policies cal
culated to discourage shifting of gov
ernment securities to the Federal
Reserve Banks, are moves in the right
direction.”-—The End.

A COUNTRY BANKER
CHECKS EUROPE
(Continued from page 17)
predict that alongside Belgium, Hol
land will lead the Fu 'o an eo'1Tries
in recovery.
Denmark-—Two Days
Meeting our plane from Amsterdam,
were cousins of Mrs. John Rowbal of
Ord, who, in spite of rationing, took
us to their home for a magnificent
dinner. The Nielsens still preserve
the old country custom of dressing for
dinner. Early the next -corring we
took a train for the birthplace of w
father at Odder and 1 found three
fir t cousins still living there and a
local banker who could speak Eng
lish. We were especially honored
when Carol was invited to play the
:gan given by my father in 1909 to
the little Lutheran church in Randers.
My initials, carved in a spirit of boy
hood exuberance 46 years ago were
still visible on a tree in the farm
yard. of my cousin, Christine.
Denmark had a short grain crop
this year, which necessitated the killre" of a large number cf cows for
•feed. The country is probably worse
off than during the war—had to ride
in a Model A Ford as the Germans
had taken the supply of Denmark’s
automobiles. Denmark needs coffee,
steel and coal, and has especially suf
fered from the lack of importation of

M E M B E R F E D E RAL D E P O S I T I.NSP R A N C E C O R P O R A T IO N

(Turn to page 35, please)

IN S U R A N C E

W hat

H a n k e r s W a n t ta •

A b o a t L i f e in ,sa r a n e e
Foyi* Most Importasit Factors in Buying Insurance
By RALEIGH E. ROSS
Oak Park, Illinois

R ECENTLY, my wife and 1 were
having dinner with a prominent
bank president and his wife.
While our wives were discussing some
feminine subject, the banker, know
ing that I was in the insurance busi
ness, said to me: “ Raleigh, this may
sound peculiar to you, but life insur
ance is a complete mystery to me. I
carrj-' some, of course. But 1 know
very little about it.”
This frank confession startled me.
My friend has just completed a year’s
term as president of the Bankers
Association of our state. Here he is,
very successful in a financial line
closely akin to mine—a man to whom
depositors frequently come for all
manner of financial advice—and yet he
says he knows little about life insur
ance! I did not think it appropriate,
at that time, to give him a short
course on the high spots of life in
surance fundamentals. But it may be
of interest and value here—not only
for presidents in a similar situation—
but for all bank men as well.

1.
The selection of a company from net costs of the various life insurance
the safety standpoint, like the selec policies. The greatest surface differ
tion of a bank, is not vital. Of the ence appears between the mutual
many thousands of banks in this companies and the stock companies.
country probably only a fraction of But here, again, there is no real differ
The mutual company may
one percent of them could conceivably ence.
be questioned on the safety factor. charge a man 35 about $38 per year
The same is true of the 509 legal per thousand for 20-payment life. The
stock company may charge $29. But
reserve life insurance companies.
Banks attract customers by adver- the dividends of the mutual company

Four Factors
What are the four most important
factors about the money for future
delivery (life insurance) which you
and your depositors buy? They are
the four which you control yourself.
The various policies are printed docu
ments with carefully-worded, legally
approved phraseology.
You cannot
change a line of them. But consider
these four factors which you do con
trol.
1. The company you select.
2. The type of policy.
3. Who will get the money?
4. How will it be payable?

THE EXPERIENCE of a well-qualified life insurance repre
sentative is o f great value in aiding his clients to make wise
selections.

Using the high quality of their service,
and insurance companies do likewise.
Here again, the difference to the de
positor, or life insurance buyer, is
seldom tremendous.
From the angle of cost, the bank or
insurance company chosen, usually
matters little. Service charges and
interest charges on loans are pretty
well standardized. So, also, are the

Did you know that this company pioneered in putting
Bank Insurance on a scientific basis and forcing
rate reductions? Ask us about our counseling service.

average $9.10 annually, while the
stock company pays none. So the net
cost is practically identical. The tencent advantage of the mutual com
pany might be considered interest on
the extra amount paid.
So, by and large, any well estab
lished life insurance company you
prefer, will be a very good company
for you.

Scarborough & Company
Insurance Counselors

F IR S T

N A T IO N A L

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

BANK

B U IL D IN G

•

C H IC A G O

IL L IN O IS

STATE

to Banks

4325

N orthwestern Banker, December, 1947

Insurance

Needs Are Important
2. The type of policy selected is a
more important matter. Here the
buyer’s needs and his objectives are
important. If he wants the most pro
tection he can get, on a permanent
basis, for his money, he will probably
buy Ordinary Life, or one of the
slightly “cheaper” special policies put
together through a combination of
Ordinary Life and Term.
If he can afford to pay a little more,
and desires to have a definite terminus
for his period of premium payments,
he vcill buy Limited Payment Life—
10-pay, 15-pay, or 20-pay, for example.
If the investment element is of
particular interest to him, he will in
vest still more per $1000 of protection,
buying an Endowment, or Retire
ment Income Policy.
Going back to the other extreme, if
he seeks temporary protection at the
lowest possible outlay, with no cash
values whatever, he will buy term
for various periods—ranging from a
year to twenty. This was the type

issued to the service men—first fiveyear Term, later extended to eight
years.
The experience of a well-qualified
life insurance representative is of
great value in aiding his clients to
make wise selections.
3. Who A v i l l get the money when the
policy becomes a claim does not pre
sent great difficulty to most buyers.
The married man usually names his
wife. But, in too many cases, he
neglects to specify contingent bene
ficiaries—for example, his children.
Why name the children? Because if
he and his wife are killed together—
or she predeceases him—in most cases,
the money is subject to probate costs
and delays before the children get it.
Then, too, for some personal reason,
he may desire to give one child a
greater share than another, instead
of depending on the standardized
equal shares which the state pre
scribes.
For a childless couple, this con
tingent beneficiary provision is often

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of even greater importance. Take a
case where they are killed in the same
accident, but the wife survives her
husband by a few hours. The pro
ceeds, if there is no contingent bene
ficiary, go to her estate and to her
relatives who may be well-to-do in
comparison with his. This would
probably be farthest from his wishes,
but it happens because he has neglect
ed to name a contingent beneficiary.
4. Final factor: How shall the pro
ceeds he paid? Cash is the easiest
way—and quite often the worst. More
and more buyers are taking advant
age of the settlement Options which
the companies offer. They are mak
ing sure that the mailman who brings
the bills each month, also brings a
monthly insurance check to pay them.

Four Standard Options
Let’s consider the four standard
options:
1. Proceeds to remain at interest
for a specified period of years (or to
a certain specified date), or for an
indefinite period to be terminated
when the beneficiary chooses. Interest
is paid monthly, quarterly, semi-an
nually, or annually. At the end of the
period—cash; or one of the other
options may have been specified.
2. Equal monthly installments over
a set period of years, from one to

F ilm m u
ill P r o g r e s s
W e are proud of our record

e M

A f,

in the Insurance field and of
our Banker Representatives.

Àa rljo.u

W e write a complete line of
Fire - Windstorm - Automo

. . . and our Sincere Thanks for

bile & Plate Glass Insurance

another year of fine
cooperation

ALLIED M U T U A L
' casualty com pany

WESTERS MUTUAL
FIRE INSURANCE COMPANY
NINTH & GRAND

DES MOINES 8, IOWA

Harold S. Evans, President
Hubbell Building

Northwestern Banker, December, 1947

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Des Moines 7, Iowa

“ Mutual Insurance Is American
Insurance99

Insurance
thirty. Interest augments these in
stallments.
3. Monthly payments for ten, (or
twenty) years and as long thereafter
as the beneficiary may live. Usually,
the Life Income Twenty Years Cer
tain is preferable to the Ten Years
Certain. The amount of the monthly
income guaranteed depends on the
age of the beneficiary when the in
come starts.
4. Monthly installments of a fixed
amount ($100 or $200, for example)
as long as the proceeds, plus interest,
will last.
It is interesting to note, that, while
all the options involve some interest,
the beneficiary pays no income tax
in any case except under the first op
tion.
Sometimes an insured may use two
of the options in connection with one
policy. If his wife is forty, for ex
ample, he may deem it best to specify
that the proceeds of one or more
policies be held at interest for ten
years and then be placed under the
Life Income Option. This latter op
tion usually works out best for a
beneficiary over fifty.
Well, there’s our short course in
life insurance. If you have stayed
with us this long, you can hardly
say, as our banker friend did: “Life
insurance is a mystery to me.”

M ERCH
AN TS
MU T UA L

B O N D IN G
COMPANY
Incorporated 1933

Sweden—-36 Hours

A COUNTRY BANKER
CHECKS EUROPE
(Continued from page 32)
German industrial products. Its pride
is hurt in that it thinks that the United
States might take away its last colony
— Greenland —■and expects to hang
onto that with Danish stubbornness.
It was here that we first heard the
expresión “No Dolía,” which all Eu
rope seems to think describes the
source of its economic woes. Danish
currency has depreciated about 35 per
cent. We especially noted the well
equipped farm homes and the general
cleanliness and care given the live
stock, with the hogs being fed inside
the barn. We enjoyed plenty of milk.

This is one country where I didn’t
get a chance to get out in the farming
area and talk to farmers. Here is a
country that profited through the war.
Its streets are lighted brilliantly in
contrast to the semi-darkness of the
rest of Europe. We made a true tour
ist’s trip of Stockholm—seeing the
museum with its magnificent Rem
brandts—the collection of armour and
weapons dating back to the Vikings
who anticipated Columbus’ trip by a
hundred years—the royal palace, a
boat trip around the city. Oh yes,
Carol dragged me off to the opera
again. We had a good dinner after
wards, but no night life. I might add

1V VVVV VVVV/VVVVVVA/V VVVVVWVINV VVVVV'

YOUR BANK’S
INVESTMENT POLICY
M a n y bankers come to us for assistance
in the m anagem ent o f their institutions’
bond

a c c o u n ts.

In m a n y situ a tio n s ,

changes in investm ent policy produce
material benefits, particularly in respect to
conservation of principal and to net earn
ings available to stockholders. Officers of

Home Office
SAVINGS & LOAN BUILDING

Des Moines, Iowa

our Bond D epartm ent would be glad to
discuss your ban k’ s investm ent policy
with vou.

This is Iowa’s oldest surety company.
A progressive company with experi
enced, conservative management.
We are proud of our hundred and
fifty bank agents in Iowa.

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

THE NORTHERN
TRUST COM PANY
5« SOUTH LA SALLE STREET, CHICAGO 90, ILLINOIS

E. H. WARNER

Telephone Franklin 7070

Bell System Teletype— CG . 368

Secretary and Manager

W. W. WARNER
Assistant Secretary

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

V \ V V \ A \ V \ V \ .V \ V V V \ \ V V 1 V V \ V A V V V V A V \ \ V \ V V \ V \ V V V V \ A V V V V V V A V V V V V V V \ V t

Northwestern Banker, December, 1947

Insurance
ican army mess sergeant who is oper
ating the only hotel. But the tech
nique fell down on getting into Ber
lin. The American zone of occupa
tion is very well run by a wonderful
cadre of non-commissioned officers,
who, after all, are the strength and
power of the army. A round of activi
ties included a dinner-dance at the
Zebra Club where 1 gave a broadcast
(ending with Rah! Rah! Nebraska!)
that might have been on the air the
following Saturday night. Next day
we had a car to drive to Darmstadt and
Heidelberg and to the Kronberg castle
where the infamous jewel robberies
took place.
Frankfort has been practically de

right here that all this was sand
wiched with a gen-you-wine Swedish
bath.
Sweden, looking across the Baltic
at Russia, is apprehensive. They do
have some very shrewd diplomats,
and their position of neutrality in the
last war makes them just a bit cocky.
Bread is rationed but eating is still an
art that requires many consuming
hours—such as spending two hours
for luncheon, in the Golden Peace, a
restaurant dating back 200 years.

Germany— Two Days
Flew into Frankfort from Stock
holm and were able to spend two days
there visiting in the home of an Amer

molished except for the larger build
ings used by the U. S. Army as head
quarters, but people still seem to live
among the ruins and carry on life. At
Darmstadt there has been much evi
dence of bombing as the English used
this for a spite raid in retaliation for
Coventry. The Nazi war crime pris
oners are kept at Darmstadt awaiting
trial. Heidelberg has been untouched,
but everywhere, we noted the terrible
condition of the German people, large(Turn to page 42, please)

Second VSce President
William T. Cameron, assistant cash
ier of the Detroit branch of the Fed
eral Reserve Bank of Chicago, joined
The Northern Trust Company, Chi
cago, as a second vice president last
month, the board of directors an
nounced. Mr. Cameron, who has been

I T C O S T S you n o th in g to have o u r In v estm en t
D ivision operate your bond portfolio. A nd using
the American N ational as your purchasing and selling
agent frequently saves or makes m oney for your bank.
H ere’s the reason: W h e n we buy or sell G o v e rn
ment, state or municipal securities for your account
these transactions are executed in the open market to
give you full advantage o f the best available prices.
There is no charge for this service. Y o u decide what
is to be bought or so ld — we handle the details.
In com pleting transactions, and in the analysis o f
your bank’s holdings, the diversified experience o f our
Investment D ivision is com pletely at your disposal.

A M E R IC A N N A T IO N A L B A N K
AND TRUST C O M PAN Y
O F C H IC A G O
LA SALLE S T R E E T
M e m b e r F e d e r a l D e p o s it

O U R

B U S I N E S S

I S

Northwestern Banker, December, 1947

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

AT W A S H IN G T O N

-fife jlsJF-

T O

In su ra n ce

Corporation

H E L P

B U S I N E S S

W IL L IA M T. CAM ER O N
W ith Northern Trust Company

assistant cashier of the Detroit bank
since 1941, was responsible for loans
made to war contractors under Regu
lation V, industrial loans made under
Section 13b of the Federal Reserve
Act, administration of Regulation W
from 1941 through 1944. In addition,
he was responsible for the supervision
of the discount, safekeeping, account
ing, credit, and RFC custody depart
ments of the Detroit branch.
A graduate of the University of Illi
nois in banking and finance, Mr. Cam
eron started, in 1929 with the Sibley
State Bank of Sibley, Illinois. In 1931
he was appointed Receiver of the Mel
vin State Bank of Melvin, Illinois. He
started with the Federal Reserve Bank
of Chicago in the auditing department
in 1934, was transferred to the Detroit
branch in 1936 as supervisor of audits,
and made assistant cashier in 1941.

Minnesota
N

JOHN CARLANDER
President
Faribault

G rey Eagle Change
Transfer of the ownership of the
State Bank of Grey Eagle, Minnesota,
was completed recently when nine
Grey Eagle business men purchased
the stock from Raymond A. Lee of
Long Prairie.
The change of ownership will in
volve no change in the working per
sonnel at present. August N. Ander
son and Mr. and Mrs. Lindquist will
continue to carry on the work as they
have done in the past.
The board of directors for the local
bank are now: D. G. Fuller, F. R.
Hammarsten and M. J. Walburn. Other
stockholders are: Dr. J. T. Laughlin,
L. P. Greener, A. F. Pallansch, Harold
and Herbert Villwock and Gordon
Peschel.

Banker Honored
Ora Jones, Jr., vice president of the
Goodhue County National Bank of Red
Wing, Minnesota, has been awarded a
signal honor in connection with his
recent graduation from the School of
Banking at Rutger’s University.
A thesis, written as part of his final
course activities, is one of 16 picked
to be published in book form and
placed on file in the American Banking
Library, the Federal Reserve Library
and in a number of accredited college
libraries.

Receives Appointment
Arthur M. Oventile has been ap
pointed assistant trust officer of the
First and American National Bank of
Duluth, Minnesota, it was announced
recently by W. D. Wyard, president.
Mr. Oventile, investment adviser in the
trust department since last April, came
here from the Continental-Illinois Na
tional Bank & Trust Company, Chi
cago.
A native of Chisholm, he attended
public schools there and graduated
from Chisholm high school. He at
tended Hibbing Junior College and the
University of Minnesota business
school, graduating with a BBA degree.

Richfield Directors
Two new directors of the Richfield
State Bank and Trust, Richfield, Min
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Federal Reserve Bank of St. Louis

S
ROBERT E. PYE
Secretary
Minneapolis

nesota, were elected at a board meet
ing last month, increasing the direc
torship from seven to nine members.
Elected were Aleck E. Ellis, owneroperator of the Smoky Point Bar-B-Q
in Bloomington, and Henry Halverson,
proprietor of the Halverson Candy
Company.
The bank, which opened for business
February 3rd, now has total deposits
in excess of $2,000,000, W. G. Kirchner.
cashier, reported.

Joins Bank Staff
Darrell L. Gavin of Manly, Iowa,
is employed as assistant cashier at the
Security State Bank, Albert Lea, Min
nesota, according to an announcement
made by A. S. Lund, vice president.
Mr. Gavin has assumed his new
duties.
A native of Minneapolis, Mr. Gavin
was reared in Manly and attended the
public schools there and Hamilton
Business College at Mason City. His
banking experience includes three and
one-half years’ employment in the
banks at Manly, and Northwood. Iowa.

J a y M arkle Retires
Jay E. Markle recently announced
his retirement from active manage
ment of the Duluth Bank of Commerce
and Savings, Duluth, Minnesota, and
the election of Oscar A. Schultz to suc
ceed him as president.
Mr. Markle, who has been president
since 1932, will remain on the board of
directors. A native of Winona, Minne
sota, he came to Duluth from the Stockyards National Bank of South St. Paul.
Mr. Schultz came to the bank last
August as executive vice president
after serving for 14 years as president
of the First National Bank of Moose
Lake, and about 18 months as vice
president of the Marquette National
Bank of Minneapolis.

Iowa and Wisconsin. He will super
vise the association’s membership and
organizational activities.
Three state vice presidents, under
the supervision of Mr. Kryzsko, have
also been appointed. They are: W. A.
Grunert, cashier, Security National
Bank, Montevideo, Minnesota; Wesley
S. Goode, president, Farmers and Mer
chants Bank, Menomonee Falls, Wis
consin, and W. H. Brenton, president,
Brenton State Bank, Dallas Center,
Iowa.
Mr. Kryzsko served as vice president
for Minnesota last year.

Guard Captain
Lloyd A. Johnson, cashier of the
Northfield National Bank, Northfield,
Minnesota, has been commissioned a
captain in the National Guard and will
be in command of Northfield’s head
quarters company.
Captain Johnson, son or Mr. and
Mrs. Carl J. Johnson of Northfield,
served nearly five years in World War
II. He was finance officer at Camp
Carson. Colorado, with the rank of cap
tain.
Affiliated with several banks since
graduating from St. Olaf College in
1935, he returned to Northfield last
spring to become cashier at the Northfield National.

Duluth Appointment
The appointment of Walter E. Rydstrom, native Duluthian, as manager
of the installihent loan department of
the Western National Bank, Duluth,
was announced last month. He is a
graduate of Denfeld high school and
following service from July, 1942, to
October, 1945, in the army, during
which he saw action in the European
Theater, he was associated with the
Duluth office of the Universal C. I. T.
Trust Company.

Ivanhoe Director
Named as a member of the board of
directors of the Farmers & Merchants
National Bank, Ivanhoe, Minnesota, re
cently was Marvin L. Anderson of
Ivanhoe.
Announcement of the election was
made by President L. V. Widmark of
the Farmers & Merchants National
Bank, Ivanhoe.

Endorse Dr. Jesness

With one, or possibly two, vacancies
looming on the Board of Governors of
S.
J. Kryzsko, executive vice presi the Federal Reserve System at Wash
dent of the Winona National & Sav ington, the Minnesota Bankers Asso
ings Bank, Winona, Minnesota, has ciation has endorsed Dr. O. B. Jesness,
been appointed a regional vice presi Chief Agricultural Economist of the
dent of the American Bankers Asso University of Minnesota, for the posi
tion.
ciation.
John Car lander, president of the
His territory will include Minnesota,

Regional Officer

Northwestern Banker, December, 1947

Minnesota News

Minnesota Bankers Association, and
president of the State Bank of Fari
bault, explaining the action of the
association, says that there has been
no representation from the Ninth Dis
trict on the Board of Governors of the
Federal Reserve System for the past
17 years and before that time only
twice had a representative from the
Ninth District served on the hoard, and
then only for short terms.

Agricultural Committee
At a meeting in Minneapolis recent
ly, W. D. Grashuis, president of the

Citizens State Bank of Clara City, Min
nesota, was appointed a member of
the Agricultural Committee of Minne
sota Bankers Association.
The aims of this committee are
threefold: Soil‘ erosion, youth activi
ties, and outside activities.
Under youth activities 4-H work will
be included.

50th Anniversary
Robb Lincoln is celebrating the 50th
anniversary of his connection with the
First National Bank of Fergus Falls,
Minnesota. Mr. Lincoln graduated

from the University of Minnesota in
1897 and began work in the First Na
tional the same year. He has worked
there continuously since that time.
Mr. Lincoln’s main hobbies are golf,
cards and a collection of rare postage
stamps. However, he gets his supreme
pleasure in helping some one whose
books do not balance. He is adept at
finding errors. Under Mr. Lincoln’s
guidance the First National Bank has
grown from a half million dollar to
a five million dollar bank.

Observing 35th Anniversary
The Farmers State Bank of Ray
mond, Minnesota, will observe the 35th
anniversary of the bank’s founding on
December 17th. The Farmers State
Bank, which has been very active in
4-H Club work in the Raymond vicin
ity, will have a completely new remod
eling job to display on its anniversary.
President H. C. Feig has announced
completion of extensive interior and
exterior remodeling that has been un
der way for some time.

Moves to Ellsworth

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Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

Edward Lowell Olson, who has been
with the Marquette National Bank of
Minneapolis since September, 1940,
with the exception of three and a half
years in the service, has moved from
Minneapolis and is now cashier of the
Ellsworth State Bank of Ellsworth,
Minnesota. He was assistant cashier
of the Marquette National Bank.
His father is J. G. Olson, cashier of
the Citizens National Bank of Madelia.
After serving as teller in the com
mercial department, as interviewer
and installment loan officer, he became
assistant cashier in June, 1946.

A $2,301,309 smile lights the face
o f Joseph F. Ringland (le ft), presi
dent o f Northwestern National Bank
of Minneapolis, and this y ea r’s Gen
eral Campaign Community Chest
Chairman, as he hands the torch of
responsibility to Alfred M. Wilson,
vice president of Minneapolis Hon
eywell Heat Regulator Company,
and next y e a r’s drive chairman.
The amount raised was 100.1 per
cent of the Chest’ s goal and marks
only the 10th time in 28 years the
quota has been reached.

W. SANDS, president
Western State Bank, St. Paul, has
been elected a member of the subcom
mittee on postal savings system of the
A.B.A.’s committee on federal legisla
tion. Mr. Sands is a former president
of Minnesota Bankers Association.
Clive T. Jaffray, chairman of the
board of First Bank Stock Corporation
celebrated the 60th anniversary of his
arrival in Minneapolis, not in Minne
apolis but in Canada where he was
on a hunting trip. Mr. Jaffray who
was 82 on his last birthday is a direc
tor of nine local companies.

A RTHUR

A special 20-cents-a-share dividend
in addition to the regular 40 cents a
share dividend payable on 1,547,767
shares of common stock outstanding
was voted by the directors of North
west Bancorporation recently. The
dividend was made payable November
25th to shareholders of record Novenv
ber 10th.
president of
Archer-Daniels-Midland Co. of Minne
apolis, died November 10th of an in
fection which developed after he
swallowed a chicken bone. Mr. Dan
iels was a director of the First Nation
al Bank of St. Paul, First Bank Stock
Corporation, and Northwest Bancor
poration.
Shreve

Archer,

Marquette National Bank of Minne
apolis has announced the promotion of
Harry D. Vadnie to assistant mortgage
loan officer. Mr. Vadnie spent five
years in the army and has been with
the Marquette since his discharge in
November, 1945.
Charles R. Park, Greenman & Cook,

St. Paul, was named chairman of the
Minnesota Group, Investment Bank
ers association at its 27th annual meet
ing.
Other officers chosen were Vice
chairman Rollin G. Andrews, J. M.
Dain & Company, Minneapolis and
Secretary-treasurer James S. Graham,
Allison-Williams Company, also of
Minneapolis.

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Federal Reserve Bank of St. Louis

Richard G. Egan, Manheimer-Egan
Inc., St. Paul; Horace Cominer, Kal
man & Company, St. Paul and End C.
Vobayda, First National Bank, Min
neapolis were named to the executive
committee for two year terms.
C. S. Ashmun, of C. S. Ashmun Com
pany, Minneapolis, retiring chairman
presided, and J. M. Dain, member na
tional board of governors, described
the organization and functions of the
I. B. A.
Axel A. Olson, St. Paul Federal Sav
ings & Loan Association, was elected
president of the Savings & Loan Coun
cil of the Twin Cities at its annual
meeting.
Other officers elected were: Oliver
W. Anderson, Hennepin Federal Sav
ings & Loan Association, Minneapolis,
vice president and Harry M. Miller,
First Federal Savings & Loan Asso
ciation, St. Paul, secretary-treasurer.

An extension course at the Univer
sity of Minnesota on “ Fundamentals
of Investment Banking” is being spon
sored as one of the fall activities of
the educational committee of the Min
nesota Group, Investment Bankers, of
which Larry Shaughnessy, St. Paul,
is chairman.
Otto Bremer, chairman of the board,
American National Bank of St. Paul
and president of Schmidt Brewing
Company, was honored by employes
of the bank on the occasion of his
80th birthday recently.
Born in Seesen, Germany, Mr,
Bremer came to the United States at
the age of 19. His first job was in
the shipping department of a St. Paul
wholesale house.
Miss May Cooley, First National
Bank of Minneapolis, retired Novem
ber 1st after 45 years of service. She
joined the staff in 1902 as telephone
girl, advancing to hold several posi
tions of importance. Miss Cooley
served as secretary to the late Paul J.
Leeman and was assistant treasurer
of the First Bank Stock Corporation

and its affiliate, First Service Corpora
tion. At the time of her retirement
she was supervisor of the bank’s re
serve training section.
The management of the Northwest
ern National Bank’s Lake Street Office
has built a parking lot adjacent to the
bank building just 200 feet from the
front door. Parking privileges are
free to all bank customers, the only
restriction being a one hour parking
limit.
H. C. Piper, Jr., of the investment
banking firm of Piper, Jaffray & Hopwood, has been elected president of
the recently organized Junior Invest
ment Bankers and Brokers of the
Twin Cities.
William Busta, Caldwell-Phillips, St.
Paul, is vice president; Leo White of
Merrill Lynch, Pierce, Fenner &
Beane, St. Paul, is treasurer, and Jay
Marsh, Woodard-Elwood, Minneapolis,
is secretary. Bernie Decheine of J. M.
Dain and Company, Minneapolis, was

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Northwestern Banker, December, 1947

Minnesota News

named chairman
tivities.

promotion

Lyman C. Wakefield, assistant cash
ier at First National Bank, Minne
apolis, has been named one of three
section leaders in Hennepin county
for the Sister Elizabeth Kenny founda
tion drive.

Enrollment in the “ Stork Club” ol
the Farmers & Mechanics Savings
Bank, Minneapolis, totaled 1,324 in its
first year of operation, according to
Henry S. Kingman, president of the
bank.

George C. Crosby, vice president of
the S. T. McKnight Company, Minne
apolis, has been appointed as a mem
ber of the trust committee of the First
National Bank of Minneapolis. He is
the son of the late Franklin M. Crosby,
Minneapolis miller and a director of
the First National for 41 years.

pany and general counsel for Montana
Power Company. He has served for
several years on the directorates of
the First National Bank of Great Falls
and the Metals Bank and Trust Com
pany of Butte, both of which are affili
ated with First Bank Stock Corpora
tion.

Election of R. H. Glover of Butte,
Montana as a director of First Bank
Stock Corporation was announced
November 19th by Augustus II. Ken
nedy, president.
Mr. Glover is western general coun
sel for Anaconda Copper Mining Com

T. L. Daniels, a director of North
western National Bank of Minneapolis,
was elected president of Archer-Danieis-Midland Company. He formerly
was executive vice president.

E. S. Jones, vice president Mar
quette National Bank, has returned to
his home after being hospitalized for
over a month following an operation.

CARL L. FREDRICKSEN
President
MARK A. W IL S O N
Vice President
W IL L IA M G. NELSON
V ice President
W IL L IA M C. SCHENK
Asst. V. Pres, and Cashier
C LIFFORD L. ADAMS
Asst. V ice President
JOHN S. H A V E R
Asst. Cashier
JAMES L. SM ITH
Asst. Cashier and Auditor
K IN L E Y W . SM ITH
Asst. Cashier

The Live Stock National Bank of
Sioux City is about to enter its 53rd
year. Its origin dates back before
the Spanish-American War and the
military exploits of Teddy Roosevelt.
W e offer you this mature experi
ence for the asking. It is at your
disposal for the handling of your
items in Sioux City.

W IL L IA M L. TE M PLE
Representative

i v e

t o c k
Na t io n a l B a n k
OF

SIOUX

CITY,

IOWA

M e m b e r F e d e r a l D e p o s it In s u r a n c e C o rp o ra tio n

Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

The general committee in charge
of plans for the Minnesota Bankers’
58th convention in Minneapolis, June
15th, 16th„ is headed by Donovan E.
Crouley, vice president, Northwestern
National Bank. Other members are
>1. O. Grangaard, vice president, First
National Bank; L. O. Olson, vice presi
dent, Midland National Bank; C. C.
Rieger, vice president, Marquette Na
tional Bank; and Robert C. Pye, secre
tary Minnesota Bankers Association.

J. R. McKnight, Pierre, South Da
kota and Walter H. McLeod, Missoula.
Montana were elected directors to the
board of the Federal Reserve Bank of
Minneapolis in an election conducted
by mail.
Mr. McKnight was re-elected to a
class A directorship. He has been a
director for eight years and is a past
president of the South Dakota State
Bankers Association.
Mr. McLeod is president of the Mis
soula Mercantile Company. He was
elected to a class B directorship, suc
ceeding J. E. O’Connell of Helena,
Montana, who did not seek reelection.
Armand W. Harris, who has been
manager of the state insurance com
mission rating division since August
1st, was named by Gov. Luther W.
Youngdahl as state commissioner of
insurance following the resignation of
Newell R. Johnson, November 19th.

Pass Billion Mark
For the first time in history, assets
of state banks in Minnesota have
topped the billion dollar mark, F. A.
Amundson, state commissioner of
banks, reported recently.
For the quarter ended October 6th
he said 495 state banks, a savings bank
and four trust companies had assets
totaling more than $1,033,000,000, with
deposits gaining $52,658,784 in the past
three months to a total of $972,613,226.

41
when he developed a serious uremic
condition, according to his physician.

E le c t t o F e w j p O fficers
R ESULTS of the seven group meet
ings h e l d recently throughout
South Dakota are as follows:
G ro u p S

The Group 1 meeting with 94 in at
tendance was held at Wagner. Officers
elected for the coming year were:
President. H. C. Danforth; vice presi
dent and cashier, First Dakota Nation
al Bank, Yankton; vice president.
Philip Pier, assistant cashier, Ameri
can State Bank, Yankton, and secre
tary-treasurer, Norman C. Gross, First
Dakota National Bank, Yankton.
The 1948 meeting will be in Yankton.

Group IS
Sioux Falls was host to 135 Group
II bankers. Those elected were: Pres
ident, W. M. Willy, president, Security
Bank & Trust Company, Madison; vice
president, E. J. Pearson, president,
Brandon Savings Bank, Brandon, and
secretary-treasurer, E. J. Harrington,
cashier, Dakota State Bank, Colman.
The 1948 meeting will be in Madison.

Group III
Bankers of Group III met in Mitchell
where 92 bankers of that group elected
the following officers: President, H.
T. Gerhard, president, Farmers & Mer
chants State Bank, Plankinton; vice
president; Julius Bertsch, cashier, Ful
ton State Bank, Fulton, and secretarytreasurer, C. J. Schiltz, assistant cash
ier, Mitchell National Bank, Mitchell.
They will meet in Mitchell in 1948.
G ro u p IV

More than 100 Group IV bankers as
sembled at Watertown for the annual
meeting. Elected for the coming year
were: President, Clayton Walker, vice
president, Aberdeen National Bank,
Aberdeen: vice president, E. O. Ander
son, vice president, Farmers and Mer
chants Bank, Watertown, and secre
tary-treasurer, L. F. Waddington, cash
ier, Rosholt Community Bank, Rosholt,
L. A. Jacobson, cashier, Bryant State
Bank, Bryant, was nominated member
of the executive council for a threeyear term, to succeed W. K. Johnson
of Estelline, whose term expires after

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Federal Reserve Bank of St. Louis

the 1948 convention, which will be
held in Aberdeen.

G?©up V
The Group V meeting was in Huron
this year with 54 members present.
Officers elected were: President, O. E.
Fristad, assistant manager, IT u r o n
Branch of the National Bank of South
Dakota; vice president, S. P. Seiersen,
president, Bank of Wessington, and
secretary-treasurer, L. A. Meyers, as
sistant manager of the Huron Branch
of Northwest Security National Bank.
Group V bankers will meet in Huron
again in 1948.
¥S
This meeting was held in Mobridge
by 110 group bankers who elected the
following: President, R. W. Douglass,
president, Farmers State Bank, Du
pree; vice president, Max Gutz, cashier,
First National Bank, Selby, and secre
tary-treasurer, S. PI. Larsen, assistant
manager of the Mobridge Branch of
the First National Bank.
Mobridge is the site of the 1948 meet
ing.
G ro u p VIS

The Group VII meeting in Deadwood
drew 74 member bankers to that his
toric city. They elected the following
as officers: President, G. Q. Runkel.
cashier, Bank of Belle Fourche; vice
president, Ralph Mattson, vice presi
dent and manager, Hot Springs Branch
of the First National Bank of the Black
Hills, and secretary-treasurer, John E.
Loberg, president, Rushmore State
Bank, Hill City. John M. Ryan, vice
president and manager, Lead Branch,
First National Bank of the Black Hills,
was nominated member of the execu
tive council for a three-year term to
succeed H. B. Lovald of Philip, whose
term expires after adjournment of the
1948 convention in Belle Fourche.

iELGS'ease C a p ita l
Stockholders of the First National
Bank of Beresford, South Dakota, have
voted to increase the common capital
of the bank from $50,000 to $100,000.
This will >o accomplish ed by declaring
a common stock dividend of 250 shares
with a par value of $100 per share and
the sale of an additional 250 shares.
This action will leave the bank with
a common capital structure of $160,000.

J©is?§ [Bank Staff
O. K. Ripplinger has joined the staff
of the Vermillion Branch of the Na
tional Bank of South Dakota, it was
announced last month by J. T. Sanger,
vice president and manager.
Mr. Ripplinger comes from Neillsville, Wisconsin, where he has been
associated with the First National
Bank of Neillsville for about eight
years.

Herbert E. McKee
Herbert E. McKee, 70, vice president
of the Gregory, South Dakota, branch
of the Northwest Security National
Bank, died recently after an illness of
six months. Surviving are his widow,
three sons and two daughters.
After an early career as a cow-punch
er on the Rosebud Indian Reservation,
Mr. McKee became a banker. At the
age of 71 he retired October 1st as
manager of the Gregory Branch of the
Northwest National Bank of Sioux
Falls.

Resigns Position
Howard O’Keefe has resigned as as
sistant manager of the National Bank
of South Dakota in Vermillion. He
will enter the contracting business
with his father in Prior Lake, Minne
sota.
Mr. O’Keefe came to Vermillion last
November from the National Bank of
South Dakota in Sioux Falls, where he
had been employed since the spring of
1946 following his discharge from the
army. Mr. O’Keefe was also associated
with the Sioux Falls bank for eight
months prior to his entrance into the
armed services in the fall of 1939.
Mr. O’Keefe’s successor has not yet
been named, according to John T.
Sanger, vice president of the National
Bank of South Dakota, and manager
of the Vermillion bank.

M Fe Patton

7Sfh Birthday

M. F. Patton, 73, president of the
Mitchell National B a n k , Mitchell,
South Dakota, died last month.
Mr. Patton was recovering from a
major operation, which he underwent,

Fifty years ago George Fullinweider,
25-year-old youth from Estherville,
Iowa, arrived in Huron, South Dakota,
and began managing the Standar Sav
ings Bank.
Northwestern Banker, December, 1947

South Dakota News

Last month Mr. Fullinweider, now
manager of the Northwest Security Na
tional’s bank in Huron, was honored
at an open house affair in the bank
when friends helped him celebrate his
75th anniversary and his 50th “job
anniversary.”
In the past half century the deposits
in the Huron bank have grown from
$84,600 in 1897 to $7,319,000 in 1947.

in Group 2. Mr. McKnight’s election
was announced by R. B. Shepard,
chairman of the board of the Federal
Reserve Bank of Minneapolis.

S i o u x Myalls N e w s
“TOM S. HARK ISON, president of the

I National Bank of South Dakota,
was reelected treasurer of the Sioux
Falls Kiwanis club.

Federal Reserve Director
J. R. McKnight, president, Pierre
National Bank, Pierre, South Dakota,
was elected last month to serve as
Class A director of the Federal Re
serve Bank of Minneapolis. He was
re-elected to office by member banks

C. A. Christopherson, chairman of
the board of the Union Savings bank,
was elected vice president of the
Woodlawn Cemetery association.
Mr. Christopherson was also an
nounced as one of the 18 members on

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are in v ited to use a n y or all o f our facilities.

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LA S A L L E

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the resolutions committee of the
American Red Cross by Chairman Earl
Kribben, Chicago.
Three Sioux Falls men prominently
connected with local banks were ten
dered reelection to their positions in
the Sioux Empire Fair association,
while a fourth became a director. Dr.
W. L. Laird, a director of the North
west Security National Bank, was re
elected president of the fair board; Dr.
S. A. Donahoe, a director of the Na
tional Bank of South Dakota, was
reelected vice president, and Frank J.
Cinkle, cashier and vice president of
the latter bank, was renamed treasur
er of the fair organization. Tony
Westra, agricultural representative of
the Northwest Security National
Bank, is a new fair director.
The Sioux council, Boy Scouts of
America, of which W. C. Duffy is
president, is completing a $68,000 camp
improvement program designed to
benefit thousands of boys in South Da
kota, Minnesota and Iowa. Mr. Duffy
is president of the Union Savings
Bank.
The Union Savings Bank has in
stalled a National interior proof ma
chine, a device for multiple adding
and bookkeeping which proves out an
entire day’s operations at the close of
the business day. The local institu
tion is one of the few banks in South
Dakota to be so equipped.—The End.

(M E M B E R F E D E R A L D E P O S I T IN S U R A N C E C O R P .)

A COUNTRY BANKER
CHECKS EUROPE

*7 h e

£ e a ¿ a * tí

Q n ,e e t i + i < j,¿

with the wish that 1948 will be a Prosperous
and Happy Year for our many friends.
Division Offices:
OGDEN, UTAH - ANGOLA, IND. - WESLACO, TEXAS
FAYETTEVILLE, ARK. - ST. LOUIS, MO. - DES MOINES, IOWA

WILLIAM H. BANKS WAREHOUSES
( I N C . )

2 0 9 SO. L A S A L L E S T . C H I C A C O , IL L .

fie le t llalefiouSe 'R eceipt4

Switzerland— 24 Hours

Bhidipntj THE GAP Between

Our plane landed at Zurich in the
afternoon. We took a train to Lucerne
(Turn to page 60, please)

Us« BANKING and INDUSTRY
Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

(Continued from page 36)
ly because of the shortage of food and
clothing. This year Germany had a
drought as bad as we had in 1934.
They have such antiquated methods
of farming with wornout horses and
oxen, coupled with the general feeling
of the farmers as well as the other
people of Germany that there is no
hope for this generation, that produc
tion of food is actually much smaller
than it could be.
We were especially gratified by the
devotion shown by the American army
enlisted men toward General Eisen
hower. This shows the greatness of
the man—the only instance in World
WTar I and II where a general has
merited the genuine love of the en
listed men of his command. His abil
ity should not be wasted by this coun
try—he merits our highest honors and
our greatest responsibilities, if he can
be persuaded to accept those responsi
bilities.

TAX and Estate Planning Confer, ence will be held at the Town Hall
in the Gardner Hotel in Fargo, North
Dakota, on Thursday, December 11th.
This conference is the result of wishes
expressed by a number of bankers at
the recent group meetings.
The morning program will be de
voted to a wide open discussion of the
income tax problems with Fred Krue
ger, special agent for the Internal Rev
enue Bureau of Fargo, leading the dis
cussion.
The afternoon will be given over to
a panel discussion arranged by Philip
B. Vogel, an attorney of the firm of
Wattam, Vogel & Vogel; Adrian McLellan, assistant trust officer of the
Merchants National Bank & Trust
Company of Fargo, and John Crary,
a chartered life insurance underwriter,
all of whom are well versed in the
subjects which they will undertake to
discuss. Pershing Boe, assistant trust
officer of the First National Bank &
Trust Company, Fargo, will preside.
The discussion will include estate
and inheritance taxes, state and fed
eral gift taxes and life insurance prob
lems in connection with estates. This
panel, in short, will endeavor to cover
as thoroughly as possible all phases
of estate planning, and the meeting
will then be thrown open for ques
tions.
“With the very substantial increase
in estate assets during the past seven
or eight years, this information should
be invaluable to you,” says C. C. Wat
tam, secretary of the North Dakota
Bankers Association, in a bulletin to
members, “not only in the matter of
handling your own estate, but also in
promoting good will for your institu
tion by suggesting to customers, who
may want to legally and legitimately
reduce inheritance or estate taxes and,
at the same time, secure a material
reduction in income taxes, that they
see their attorney or someone com
petent to advise them on this subject.”

another part, of the city since May
12th, while the elaborate construction
was under way.
New bank equipment installed in the
building includes a new vault which
provides storage facilities in the base
ment and a safekeeping space for rec
ords and books on an upper floor. The
main floor of the vault which is locked
with a three-ton door contains 700
safe deposit boxes. Triple time locks
control the mechanism of the main
vault door.
Lighting for the bank is from fluor
escent fixtures which are built into the
ceiling . The floor surface is of asphalt
and rubber tile in green and grey color,
while the walls are pink and green.
The ceiling is of soundproof celotex.
In addition to the president’s office
and quarters for other bank officers,
the bank will also provide a customers’
room where customers may confer and
transact private business conferences.

50th Anniversary
The First National Bank of Minot,
second largest bank in the state of
North Dakota, recently celebrated its
50th anniversary with an official open
house.
The bank was crowded. Huge bou
quets of beautiful and colorful flowers
were sent by friends of the bank.
The bank throughout the day main
tained its service to the customers.
President of the bank is A. R. Weinhandl, president also of the northwest
group of the North Dakota Bankers
Association. He worked at the First
National of Mandan from 1918 until
1940, achieving the position of vice
president, was field supervisor of
North Dakota and Montana banks for
Northwest Bancorporation until 1945,
then became head of the First National
of Minot.
Other officers of the bank are: W. E.
Tooley, vice president and cashier:
Charles F. Anderson, assistant cashier:
H. C. Dahl, assistant cashier, and Lloyd
Arndt, livestock agent.

Elaborate Remodeling
Officers of the First National Bank
of Devils Lake, North Dakota, held
open house in their newly remodeled
quarters recently. The bank officers
had been using temporary quarters in

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ESect New President
Gordon Nesbit, 61, president of the
First National Bank and Trust Com
pany of Fargo, North Dakota, died at
his home recently.

He was born in New York state and
came to Fargo as a boy. He is sur
vived by his widow, two brothers and
a sister.
Harold D. Crosby, who has been
associated with the First National
Bank & Trust Company 37 years, was
elected president, succeeding Mr. Nes
bit. He has been executive vice presi
dent since 1944.
His election took place at a special
meeting of the board of directors.
Mr. Crosby joined the First National
February 1,1914, as an auditor, coming
from Medina, North Dakota. He be
gan his banking career in the Geneseo
Valley National Bank, Geneseo, New
York, in 1907, following completion of
his education at the State Teachers
College in Geneseo. He was located in
Medina from 1910 to 1913.
He became assistant cashier of the
First National in 1915 and vice presi
dent and trust officer January 12, 1922.

increases Stock
The North Dakota State Banking
Board recently announced the approv
al of an application of the Walhalla
State Bank of Walhalla for permission
to increase its common stock.
The bank was authorized to increase
common stock from $30,000 to $60,000.

Napoleon Change
George Heitman of Forman is cash
ier of the Stock Growers Bank in
Napoleon, North Dakota, succeeding
Harry Fields.
Mr. Heitman has been associated
with G. A. Klefstad at Forman for the
past 12 years. Prior to working at
Forman he was employed by a bank
at Eden, South Dakota.
Mr. Fields, who has been with the
Stock Growers Bank since 1943, is
taking a two weeks vacation in South
Dakota before taking a new assign
ment with the Northwest Bancorpora
tion.

Minot Promotions
Directors of the American State
Bank of Minot, North Dakota, an
nounced the election of Roy A. Janz,
of a Minot accounting firm, as presi
dent to succeed Clarence H. Parker
who became chairman of the board of
directors.
T. A. Solheim, former cashier, was
elected vice president and R. M. Will,
former assistant cashier, was promoted
to cashier. L. O. Flatness is assistant
cashier.
C.
P. Kjelstrup, vice president and
executive officer in charge of the bank,
recently died.
Mr. Janz was named a director.
Other members of the board are Park
er, J. L. Smith, Harold B. Nelson, Rug
by and Harry B. Eck.
Northwestern Banker, December, 1947

1948

JANUARY
OUND^
A N K 1N G
E R V IC E )

N orthw estern

Banker,

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Federal Reserve Bank of St. Louis

Decem ber,

1947

45
of Riverdale, Nebraska, announced re
cently by C. H. Pratt, president, re
veals the authorized capital structure
has been increased to $45,009. Of fhis
amount $25,000 has been subscribed.
Mr. Pratt has can with the bank
approximately 10 years, ever since the
business was founded. L. T. Pratt is
cashier of the *jSnk.

Leola Improv^Bnenâs
Tiidcsn Promotions
At a meeting of the board of direc
tors of The Tilden Bank, Tilden, Ne
braska, recently, several changes were
made in the bank officers.
J. J. Ryan, Sr., who held the position
of vice president and cashier, will as
sume the duties of first vice president
and Dean Hales was advanced from
assistant cashier to cashier.
J. R. Kinder, Lincoln, is still presi
dent, and B. E. Graham will retain his
title of vice president.
Charles H. Kelsey of Norfolk and
C. E. Marquardt of Madison, members
of the board of directors, were also
present for the meeting.

Feature R. W. Trefz
Some time during the winter the
Saturday Evening Post will publish an
article on a “typical, outstanding small
town banker.”
Subject of the article, already writ
ten and now being prepared for publi
cation, is R. W. “ Dick” Trefz, president
of the Beatrice State Bank, Beatrice.
Nebraska.
Recently Richard Boyer, Chicago,
photographer for the Saturday Eve
ning Post, finished up picture taking
of Mr. Trefz in his bank, at home with
his family, having lunch with friends
at the Elks Club, in church, visiting
some of the bank’s rural customers on
their farms. He has made 40 or 50
pictures, two or three of which will
be selected to illustrate the Post articl'.
J K l .5 Eel's© -?
William Berner is the new cashier
at the Farmers and Merchants Bank
of Edison, Nebraska, having assumed
his duties recently. Mr. Berner, whose
home is at Avoca, has been employed
in Oxford for the past several months.

Ansley Change
E. C. Varney recently became asso
ciated with the Security State Bank
of Ansley, Nebraska, as a stockholder
and cashier.
At a recent stockholders’ meeting,
Ival Gardner was elected president of
ihe bank, succeeding the late J. H.
Watts, who had headed the institution

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for a long period prior to his death
last summer. Mr. Gardner has been
cashier of the bank for the past 19
years.
E. C. Varney was elected cashier
and becomes active with the bank this
week. Mr. Varney has been associated
with the Broken Bow State Bank for
the past 12 years, and has been cash
ier of the bank in recent years.
Other stockholders and directors of
the Ansley State Bank are J. T. Mc
Gowan, H. D. Reed, W. C. Schaper
and Mrs. J. IT. Watts.

Fremont Leads
Leading all cities in percentage gains
in the west central states and ranking
second in the United States, Fremont
banks showed a 364 per cent gain in
bank debits for the first nine months
of 1947 over the similar 1940 period.
Figures showed checks on local
banks in the first nine months of 1947
totaled $116,232,000. In October, bank
clearings were the highest for any
month since 1927, at $2,362,969.

Installation of fluorescent lighting
fixtures in the Leola State Bank, Leola,
Nebraska, was completed recently.
Several other improvements to the
building are being made. The rear
room partitions are being taken out
to provide a private conference room
and as a meeting place for directe or for such other meeting purpos ’ ' ■
may be required from time to •Lae.
When remodeling operations are com
pleted, the entire interior of the
ground floor will be redecorated.

Capital Increase
The Farmers State Bank of Aurora,
Nebraska, increased its capital stock
from $36,000 to $50,000 by declaring a
common stock dividend out of its cur
rent earnings.
The increase in capital stock was
made to keep pace with the expanding
deposits. Total assets of the bank are
now $3,140,981 and total deposits are
$3,039,969.
Officers of the bank are Frank
Wanek, Jr., president; J. A. Wanek
and Charles F. Adams, vice presidents,
and George AVanek, cashier.

Charter Issued
A charter was issued the Republican
Valley Bank of Orleans, Nebraska,
Banking Director J. F. McLain an
nounced last month.
Robert Ott is president of the insti
tution; John Tubridy, vice president,
and Thomas J. Waldo, cashier.
The bank lists a total capital ac
count of $40,000, including $32,000 cap
ital stock, $5,000 surplus, and $2,500
paid in undivided profits. The capital
account was subscribed to by 11 share
holders, all of whom are local business
men, farmers and stockmen.

Remodeling and redecorating of the
Nebraska State Bank, South Sioux
City, Nebraska, has been completed.
Some expansion of quarters was neces
sary, due to increased business, and
A. G. Nelson, vice president, states
deposits are at their all-time peak.
Cashier is K. L. Peters.
Mr. Nelson was named recently as
treasurer of the Infantile Paralysis
Fund and Cancer Drive for Dakota
county.

Flying Banker

Install Library

B. E. Graham, president of the Tild
en, Nebraska, Bank, is one of the few
flying Nebraska bankers.
He had to drive 22 miles to learn to
fly under Andy Risser, veteran Ne
braska pilot at Norfolk, Nebraska. Mr.
Graham now has one hundred hours
and owns his own plane. He finds it
a big help in looking over farm lands.

Increased Capital
A notice of amendment to the arti
cles of incorporation of the State Bank

Complete Remodeling

To assist in tnis important under
taking of providing facts and informa
tion relative to various businesses, The
First National Bank of Tekamah, Ne
braska, has purchased a library of
books on the establishing and opera
tion of various businesses, books on
choosing locations, on record keeping
and various other phases of business
operation.
These books of valuable information
are available to anyone who may wish
to use them.
Northw estern

Banker,

Decem ber,

1947

Senator Wherry Tells Nebraska Bankers—

E u ro p e M u s t W o rk

S. A i d

Expresses Views on Foreign Policy at
50th Nebraska Convention in Omaha
By BEN HALLER, JR.
Associate Editor
THE NORTHWESTERN BANKER
OD helps those who help them
selves,” is the basis upon which
foreign aid should be granted
by the United States, according to
the beliefs expressed by United States
Senator Kenneth S. Wherry last month
when he addressed 1,200 bankers and
their wives at the Nebraska Bankers
Association’s 50th convention in Oma
ha.
Senator Wherry addressed the dele
gates at a noon luncheon the second
day of the convention. In the business
session following his address J. Overly
Peck, president Central National
Bank, Columbus, was elected to the
presidency succeeding Glen T. Gibson,
president Exchange Bank, Gibbon,
who has just completed a very suc
cessful year as president. Serving with
Mr. Peck will be J. R. Kenner, presi
dent Thayer County Bank, Hebron, as
vice president, and Austin L. Vickery,
assistant vice president United States
National Bank, Omaha, as treasurer.
Carl Swanson was reappointed secre
tary of the Association. Mr. Vickery
succeeds Fred W. Thomas, vice-presi
dent First National Bank of Omaha,

who served as treasurer for a number
of years.
Elected to the executive council
were H. W. Sehepman, vice president
Johnson County Bank, Tecumseh;
Janies Zoubek, president Stanton Na
tional Bank, Stanton; W. H. Munger,
vice president First National Bank,
North Platte, and W. J. Safford, presi
dent Scottsbluff National Bank. Scottsbluff.
Nebraska representatives in the
American Bankers Association are: J.
V. Webster, vice president and cashier
First National Bank, Chadron; Ivan C.
Riley, president First National Bank,
Fairbury; C. F. Witt, president South
Omaha Savings Bank, Omaha; C. J.
Mortensen, president Nebraska State
Bank, Ord, and Harold T. Uehling,
trust officer United States National,
Omaha.

No Work— No Help
Senator Wherry made it very defi
nite that he would personally oppose
any program of loose foreign spend
ing, specifically mentioning that Eng
lish coal miners would have to go to
work and start producing needed coal

before they would get any aid with
his help.
“The Marshall plan as reported in
the press will have a terrific impact
on our domestic economy,” the Sen
ator stated, adding, “and if the Mar
shall plan is a glorified WPA, I won’t
be for it.”
In reporting on his six-week trip
through Nebraska recently, Senator
Wherry said Nebraskans are vitally
interested in and asking questions
about three main topics:
1. Water— Nebraska needs more
conservation of water, flood con
trol, drouth control, soil conserva
tion and erection of dams than
ever before.
2. Increased living costs— Espe
cially in the cities.
3. Foreign policy— Most talked
about subject and he believes the
people of Nebraska are thinking
right on this subject.
In regard to the water problem,
Senator Wherry cited the increase in
population, industry and wealth in
Scottsbluff and Alliance and their ad-

A t N eb ra sk a 's 5 0 t h C o n v e a tio a
PICTURED on the opposite page are a number o f those
attending the Nebraska Bankers Association 50th Convention
held last month in Omaha. Reading from left to right, they are:
1—
Carl G. Swanson, Association secretary; J. R. Kenner,
newly elected vice president of the Nebraska Association, and
president of the Thayer County Bank, Hebron; J. O. Peck,
president o f the Central National Bank, Columbus, and the new
president o f the Association; and Glen T. Gibson, president
Exchange Bank, Gibbon, immediate past president.
2—
B. M. Wheelock, vice president Security National Bank,
Sioux City, Iow a; Victor Von Meding, First National Bank,
Chicago; and T. C. Cannon, Iowa and Nebraska district manager
St. Paul Terminal Warehouse Company, Des Moines.
3—
V. E. Dolpher, president First National Bank, David City,
and a past president o f the Nebraska Association; and J. F.
Peters, executive vice president Citizens National Bank, Ash
land, former Nebraska director of banking.
4—
F. L. Ferrell, vice president Nebraska State Bank, Osh
kosh; J. T. Stewart III, vice president and cashier First Na
tional Bank, Omaha; and Harold Olson, vice president Lisco
State Bank.
5—
Glen T. Gibson; Verne L. Bartling, assistant vice presi
dent First National Bank, Chicago; Henry A. Schneider, presi
dent Plattsmouth State Bank, and past president of the Ne
braska Association; William B. “ Billy” Hughes, for many
years secretary o f the Nebraska Association and now retired;
and Otto Kotouc, Sr., president Home State Bank, Humboldt,
another Nebraska past president.
Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

6—
A. F. Vasina, cashier State Bank of Colon; Byron Dunn,
president, National Bank o f Commerce, Lincoln; Will R.
Hrabak, cashier Farmers State Bank, Dodge; and Carl D. Ganz,
vice president and trust officer National Bank o f Commerce,
Lincoln.
7—
J. S. Zdychnec, cashier Randolph State Bank, Randolph,
Iow a; Marcia Rhode, assistant cashier Randolph State; W. T.
Stanosheck, chairman o f the board State Bank of Odell, Ne
braska; and Marion L. Zdychnec, assistant cashier Randolph
State Bank, Randolph, Iowa.
8— Richard L. Dunlap, vice president, and Bruce H. Thomas,
assistant vice president, both of Commerce Trust Company,
Kansas City; Fred T. Burri, cashier Tootle-Lacy National Bank,
St. Joseph, Missouri; Fred Bruning, president Bruning State
Bank, Bruning, Nebraska; and Dale C. Smith, assistant cashier
Central National Bank, Des Moines.
9—
Admiring the gorgeous flowers in the headquarters room
o f the United States National Bank o f Omaha are S. H. Megown,
cashier Bank of Chadron; Nels L. Sholin, assistant cashier
United States National Bank; E. H. Johnston, cashier First
National Bank, Imperial; R. Gustafson, cashier Northwestern
State Bank, Hay Springs; and Austin L. Vickery, assistant vice
president United States National Bank, Omaha.
10— A. J. Koelling, president City National Bank, Hastings;
Herb H. Echtermeyer, vice president Live Stock National Bank,
Omaha; and W. J. Stafford, president Scottsbluff National Bank.
11— E. W. Jones, vice president Iowa-Des Moines National
Bank, Des M oines; and Arthur Jensen, director Minden Ex
change National Bank, Minden, Nebraska.

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Nebraska News

jacent communities following the in
stitution there of irrigation and water
controls. He is for building such pro
jects here in this country first, in
stead of building a $200,000,000 pipe
line 1100 miles long in Saudi Arabia
with badly needed tubular steel, as
was done recently by this government.

Inflation Causes
Speaking about the high price situ
ation. Senator Wherry made the fol
lowing observations:
1. The dollar today is worth 49.48
cents compared to 1939. One reason
for this is 15 years of deficit spending.
2. The rate of wages is about twice
as high .as 1939.
3. Sixty-seven cents of every dollar
a consumer spends goes for labor from
producer to consumer.
4. In 1939 there were 1,117,000
pounds of meat shipped abroad. This
past fiscal year, 1,241,000,000 pounds
left the country.
5. Over 570,000,000 bushels of wheat
have been exported the past year out
of a crop of 1,450,000,000 bushels.
6. Twenty-six per cent of tubular
construction steel is shipped out.
7. Over 400,000,000 tons of coal have
gone to Europe alone.
8. Americans are eating 35 per cent
more meat this year and 20 per cent
more on an over-all basis.
9. There are 41 billion dollars in
circulation.

Three "Cures"
Three steps to be taken as a “cure’
for our ills, Senator Wherry said, are:
1. Get maximum production; we must
produce more goods. 2. Stop deficit
spending; keep the outgo within the

income. 3. Balance off foreign trade.
In taking up foreign relief plans,
Senator Wherry emphatically de
nounced the Morgenthau plan, saying
any plan was better than it because
now we are right back where we
were before the Morgenthau plan was
tried, and in the meantime we have
spent millions. He believes we should
either educate Germany or get out of
Europe.
In reviewing the domestic economy
budget and trying to find a place in
which the Marshall plan could fit,
Senator Wherry gave the following
figures as composing the national bud'
get: first item is 5.5 billion as interest
on the national debt; 7.5 billion to
vets of all wars; 10.5 billion to the mili'
tary (pared from a requested 18 bil
lion) for all purposes. This is only
the start, he said, and already com
poses 23.5 billion of a national budget
of 37.5 billion. His question was where
the 7 billion for the first year Marshall
plan should come from and where will
we get the other 18 billion he says it
will take.
In his closing remarks, the Senator
expressed the belief that there are
at least 14 billion dollars of frozen
foreign assets in this country that
should be put to work in their home
lands before we give any help. Also,
he wants a limit placed on all loans to
any European country.
“The greatest issue facing this
country today,” he stated, “ is to stop
Communism, and if we want to stop
it we must stop it first at home.”

Better Education
Several other top notch speakers

Did you know that adoption of our Cash Letter
insurance enables you to dispense with detailed
Cash Letter transcripts and keep only a duplicate
adding machine tape? Ask us for details.
F IR S T

N A T IO N A L

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BANK

B U IL D IN G

C H IC A G O

addressed the delegates, among them
Dr. Clark G. Kuebler, president of

Ripon College, Ripon, Wisconsin, who
studied in Germany for 11 years
through the late twenties and thirties
when Hitler was coming into power.
Dr. Kuebler's plea was for a better
educated citizenry, not in specialized
trades, but in the basic educational
truths which come from general
school studies. “Democracy cannol
survive where there is an unenlight
ened citizenry” , said Dr. Kuebler, and
he used European countries observed
first hand as examples.
Maple T. Hurl, chairman F.D.I.C.,
Washington, was unable to attend be
cause of illness,, but his prepared ad
dress was presented very ably by H.
E. Cook, director of the F.D.I.C. and
former Ohio bank superintendent.
Mr. Harl’s remarks were directed
principally to bank directors, outlin
ing their responsibilities to their bank
ing institution and to the public which
it serves. A bank doesn’t fail, he ob
served, it is the banker who fails;
and the failure of a banker is the
moral, if not the legal responsibility
of the directors who choose the bank
executives.
James L. Robertson, deputy comp
troller of the currency in Washington,
and a native Nebraskan, described “A
Banking Picture” in his address. Mr.
Robertson’s talk was extremely timely
and will be reproduced in the next
issue of the N o r t h w e s t e r n B a n k e r .
Vernon L. Clark, national director
of the U. S. Savings Bond Division
for the U. S. Treasury in Washington,
and also a native Nebraskan, reported

Scarborough & Company
Insurance Counselors
3,

IL L IN O IS

STATE

to Banks

4325

Northwestern Banker, December, 1947

Nebraska News
that Nebraskans had purchased 127
per cent of their 1947 quota by the
end of September. The state had 2.25
per cent of the nation’s total pur
chases, and individual Nebraskans
now own $540,000,000 in bonds.
J. R. Kenner, new Association vice
president, in making his report as
chairman of the Bankers Clinic Com
mittee, reported to the Association
that tentative dates for the clinic to
be held at Doane College, Crete, next
summer are June 19, 20 and 21.

113,000 Nebraska service men eligible
for G. I. loan benefits.

Ten Resolutions
The 10 resolutions adopted by the
convention were concise and to the
point. They included continued sup
port of the Bond-A-Montli plan; better

soil conservation; praise for the efforts
of E. W. Rossiter, president Bank of
Hartington, on tax matters; con
tinuance of former requirements of
Regulation W; support of any redraft
of income tax laws, and a call to Fed
eral Government to reduce assessment
on member banks of F.D.I.C. because

CONTACT

Only One Non-Member
S. J. Wirtz, chairman of the mem

bership committee, and assistant
cashier Omaha National Bank, made
the announcement that when the last
Association year began there were
25 non-member banks, and at the
time of his report, only one bank in
the state did not belong to the
Association.
B. I). Berkheimer, president First
National Bank, Gordon, and chairman
of the subsidized lending committee,
described subsidized lending as “a
creature of Congress.” He gave a
report on his committee’s efforts to
oppose such subsidized practices and
recommended a program of advertis
ing by the Nebraska Association in
all farm magazines in the state and
in leading state newspapers, so as to
get across the story of the country
banker.
R. I. Stout, president First National
Bank, Tekamah, and chairman of the
group insurance committee, reports
that 137 banks, and 650 lives are in
sured under the Association’s group
insurance plan at the start of the third
year of the program. One of every
five member banks received some pay
ment during the first two years from
this group insurance, and last year
a dividend of 15 per cent was paid.
S. C. Waugh, vice president First
Trust Company, Lincoln, and chair
man of the service to veterans com
mittee, showed that 307 banks and
one trust company in Nebraska have
made one or more G. 1. loans. Up to
October 25th, there had been 10,000
loans made—931 farm loans, 843 busi
ness loans, and the rest home loans.
Over $41,700,000 in loans to G. I.’s
have been made in Nebraska by all
classes of lenders. As of the same date,
there were reported only 20 losses,
18 of them business loans, one home
loan, one farm loan, for a total of
slightly over $10,000. There are still
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
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Direct contact with the livestock industry
enables us to give correspondents the very
best service in the handling of your livestock
remittances.
Let us handle these remittances for you.

First St. •losr|»li
STOCK Y A R D S B A N K
South St. Joseph, Mo.
OFFICERS
J. A. Greenfield, President
Thos. J. McCullough, Vice President
M. E. Blanchard, Cashier
Louis J. Komer, Assistant Cashier
H. H. Broadhead, Jr., Assistant Cashier

“ ONLY BANK II\ THE YARDS ”

THANKYOU
To all of oor friends who have contriboted
to a very successful year at the
National Bank of Commerce.

NATIONAL BANK of COMMERCE
LINCOLN. NEBRASKA
M em b er F ed era l D e p o s it In su ra n ce C orporation

F. E. DAVENPORT & CO.
OM AHA

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1947

Nebraska News

that Corporation now has accumulated
a reserve of one billion dollars.
One of the most important of the
resolutions was that which called for
the abolition of the Production Credit
Association since banks of Nebraska
are willing and able to finance all
legitimate operations. “We recom
mend that if this organization con
tinues to operate it do so on its own
capital structure and that it be placed
on a tax paying basis similar to any
privately owned corporation.” — The
End.

Not That Kind
Boss: 1“ Hawkins, you’ve been with
us two weeks now. Do you realize
that in that short time you’ve been
late five times?”
Hawkins: “No, sir, I didn’t know,
Boss. You see, I’m not one of those
fellows who’s always watching the
clock!”

IRTUE is still its own reward,
hut kids in Omaha who are honest
are getting something more tangible,
too.
The Omaha National Bank started
the ball rolling when it established a
program to honor youngsters who find
billfolds and purses containing money
and who return them. The bank’s aim
is to encourage honesty.
A. J. Rhodes, assistant cashier of the
bank, who started the plan, asked boys

9 * t J lin c o U t —

*7I t e G o -* ttt* ie * ita l—

JL HE Continental, "Nebraska's friendly bank,"
cordially invites you to draw upon any or all of its
many banking facilities for handling your corre
spondent business. Noted for its prompt, courteous
and efficient service and its staff of well-qualified
experts, the Continental National Bank stands ready
and eager to serve you in Lincoln.

(

o n t in e n t a l

a t io n a l

a n k

L IN C O L N
Member Federal Deposit Insurance Corporation

and girls who find money to take it,
not to the bank, but to the police de
partment, school principal or some
other responsible person, if the owners
cannot be found. Then the cases are
reported to a committee, which sees
that the finder is rewarded. The hon
esty-award plan is for boys and girls
under 14 years in the city’s metropoli
tan area.
Representative

Howard

Buffett

(Rep., Neb.), who also is an Omaha
investment banker, recently laid plans
to push his bill requiring private par
ticipation in Export - Import Bank
loans. Mr. Buffett believes his bill
ties in directly with aid to Europe.
Last January he introduced his
measure in the House and it was re
ferred to the banking and currency
committee, of which he is a member.
No hearings were held, however. Now
Mr. Buffett believes the time is ripe
for consideration. Briefly, his bill
would require t h e Export-Import
Bank, in any loan of more than $5,000.000, to request offers from private fi
nancial institutions and lenders, and
to accept for participation not less than
25 per cent of the total loan.
Mrs. Frederick A. Nash, 73, mem
ber of a pioneer Omaha family, died
recently at an Omaha hospital. She
was the youngest and last surviving
child of the late Mr. and Mrs. John
D. Creighton, and the widow of the
founder of the Omaha Electric Light
Company, predecessor of the Nebraska

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Federal Reserve Bank of St. Louis

Nebraska News
Power Company. Survivors include a
daughter, Mrs. J. Francis McDermott,
wife of the vice president of the First
National Bank of Omaha, and a son,
Frederick A. Nash, Jr. There are six
grandchildren. Pallbearers at rites
held from the McDermott residence to
St. Cecilia’s Cathedral in Omaha in
cluded J. T. Stewart, III, vice president
and cashier of the First National Bank
of Omaha.
Mrs. Dale Clark, wife of the presi
dent of the Omaha National Bank, left
in November to visit her sister, Mrs.
C. E. Johnston, in Chicago before go
ing to Petersburg, Illinois, to be a
guest of her daughter, Mrs. John
Schirding, the former Jessie Clark.
In Chicago Mrs. Clark attended a
performance of “Tristan and Isolde”
with Kirsten Flagstad, at the Chicago
Opera House.

Despite the fact that no interest is
paid on Christmas savings accounts.
7,687 Omahans received more than a
half million dollars when Christmas
Club payments were made in Novem
ber. Seven Omaha banks have such
accounts. The amount paid out was
nearly $100,000 more than last year,
and the number of savers was more
than 1,000 over 1946.
Christmas savings is really a mis
nomer, surveys show. Some of the
money goes for Yule gifts, it’s true, but
taking a big slice are insurance, taxes,
doctor bills and just plain bills. One
bank said that several liquor dealers
use the plan to save for license pay
ments. Many persons redeposit their
Christmas savings checks. One bank
found that more than half of the fund
members have regular checking or sav
ings accounts. Most Omahans are
passing by the 25- and 50-cents-a-week
Christmas Clubs. The $1 and the $2-aweek plans are getting the biggest
play. Omaha banks will push the
Christmas savings plan harder for
1948. Next year eight banks expect to
have such accounts.
Smith, Landeryou & Company, Oma

ha investment bankers, have an
nounced a change in name to Smith,
Polian & Company. Harry F. Smith
is president; Harold O. Polian, vice
president and treasurer, and Garnette
C. Miles, secretary. The firm, estab
lished in 1925, has offices at 424 Omaha
National Bank Building.
A middle-aged man recently went to
an Omaha bank with a handful of
pulp, which a year ago had been $2,500
in bank notes. Although he had a
bank account and a safety deposit box,
the out-state man had buried the cur
rency underneath a concrete slab at
his home. When he went later to look
at the hoard, he found that moisture
had taken its toll. The Omaha Branch,
Federal Reserve Bank of Kansas City,
sent the pulp to the Federal Treasury
and there is a possibility the man may
reclaim something if the Treasury can
find enough bits to identify the bills.
Wives of members of the Nebraska
Bankers Association who attended the
annual convention in Omaha had a
program all their own.
Mrs. H. C. Karpf was chairman of
the women’s committee. She was as
sisted by Mrs. A. Tj. Coad, Mrs. C. A.
Jeffrey, Mrs. W. A. Sawtell, Mrs. A.
L. Vickery, Mrs. O. H. Elliott, Mrs. Ray
R. Ridge, Mrs. C. F. Witt, Mrs. K. G.
Harvey, Mrs. Robert H. Hall and Mrs.
John K. Friedeback.

Features were a luncheon and style
revue in the Black Mirror Room of the
Fontenelle Hotel and a tea preceding
the buffet supper and dance at Peony
Park. The wives also attended a dele
gates’ luncheon at the Paxton Hotel,
convention headquarters, when United
States Senator Kenneth Wherry of
Nebraska was speaker.
Richard H. Mallory was elected pres
ident of the Downtown Kiwanis Club
of Omaha recently. Mr. Mallory is
vice president of the United States Na
tional Bank and a Navy veteran of
World War II.

NATIONAL BANK
MILTON TOOTLE

FRED T. BURRI

R. E. WALES

P R E SID E N T

CASHIER

V IC E P R E S ID E N T

GRAHAM G. LACY

E. H. SCHOPP

E. L. CRUME

CH. OF TH E BOARD

ASST. CASHIER

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Federal Reserve Bank of St. Louis

W. B. (Bob) Millard, Jr., senior vice
president and director of the Omaha
National Bank, has been named funds
campaign chairman for the March,
1948, drive of the Douglas County
American Red Cross Chapter. W. LeRoy Wilcox is chapter chairman.
Mr. Millard is on the board of di
rectors of the Red Cross in Omaha. He
is a director of the Omaha & Council
Bluffs Street Railway Company, a di
rector of the Forest Lawn Cemetery
Association, president of the board of
regents of Creighton University and
trustee of Creighton Hall, and a mem
ber of the finance committee of Ameri
can Legion Post No. 1. He was King
of Ak-Sar-Ben in 1941 and is now vice
president and Governor of the Knights
of Ak-Sar-Ben.
Charles D. Saunders, vice president
of the First National Bank of Omaha,
is one of four directors of the Omaha
Public Power District named to a com
mittee which will investigate the pos
sibility of reducing electric rates for
OPPD customers. Mr. Saunders is
also chairman of the district’s finance
committee.
The rate of reduction move came
less than a year after public owner
ship of the utility.

Thirty-two office assistants of Na
tional Farm Loan Associations at
tended a two-day conference in Omaha
recently. The 31 women and one man
represented Omaha Federal L a n d
Bank affiliates in Nebraska, Iowa,
South Dakota and Wyoming. E. N.
Van Horne, president of the Omaha
Land Bank, was principal speaker.
The group toured the Land Bank and
the city.
In the Omaha Community Chest
drive, Thomas R. Noonan, a plant cap
tain for employes of the Omaha Na
tional Bank, said reports indicated that
gifts from the bank’s employes would
total about $1,590, a gain of about 10
per cent over last year. This did not
include gifts from the bank’s officers.
—The End.

ST. JOSEPH, M0.
Member Federal Deposit
Insurance Corporation

Northwestern Banker, December, 1947

R. H. Kroeger, Vice-President of Live Stock National Bank of Omaha,
an executive in the correspondent banking loan and credit functions.

CREDIT an d LOAN SERVICE THAT BUILDS YO U R PROFITS
It takes specialized experience in all
phases of bank loans to analyze and act
promptly on a wide variety of credit
requests.
Through 33 years of continuous service
with the Live Stock National Bank during
a period of varied and changing economic
conditions and being an officer since 1922,
R. H. (Rhine) Kroeger is well qualified as
one of our team of officer-specialists to
render our correspondent banks prompt
and efficient service in the loan and credit
field as well as in other phases of banking.

Confidence earned by performance is the
reason more than 400 banks in the Mid
west Agricultural section, the Great Plains
and the Rocky Mountain area make con
stant use of this Live Stock National ser
vice. Especially is this true in handling
livestock loan paper — our specialty.
Take advantage of this speedy and re
liable service. Make Live Stock National
your correspondent bank. You'll build
more loan profits and improve your cus
tomer service.

LIVE STOCK
O M A H A ,
TH E

B A N K
M em ber

OF
Federal

Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

N E B R A S K A

F R I E N D L Y
Reserve

BANK

and

Federal

2 4 - H O V R
D eposit

S E R V I C E

Insurance- C orporation

53
ty State Bank office in Van Meter.
He replaces Clarance Dunn, who
passed away several weeks ago. Mr.
Dillon received his training in the
Dallas County State Bank and he will
continue to live in Adel for the time
being.

1o w a

NEWS

R. W. Hall Named
W. W. BLASIER
President
Jesup

FRANK WARNER
Secretary
Des Moines

New Colo Building
The Colo office of the State Bank &
Trust Company, Nevada, Iowa, opened
for business last month in their new
building. The lot was purchased by
the bank more than a year ago and
work started shortly after, but com
pletion was deferred by shortage of
materials from time to time.
The building is of brick and brick
block construction with a fine concrete
vault, and houses an oil burning hot
water heating plant.
The new equipment is not yet com
plete, the deposit boxes not having
arrived but are expected soon to add
to the services offered.
C. W. Yeager is manager of the Colo
office and has been assisted by Mrs.
Yeager.

Oelwein Bank Hosts
The First National Bank of Oelwein
and the Oelwein State Bank of Oel
wein, Iowa, were hosts to the Fayette
County Bankers Association at their
fall dinner meeting recently.
Russell A. Swartz of Fayette, was
elected president, Carl B. Schori of
West Union, vice president and
Churchill Williams of Oelwein, secre
tary-treasurer.
E. L. Jenkins gave a very interest
ing explanation of the new insurance
plan for bank employes.
Banks in Arlington, Clermont, May
nard, Fayette, Elgin, Oran, Waucoma,
West Union, and Oelwein were well
represented by officers, directors and
employes who enjoyed a very informal
discussion period following adjourn
ment of the meeting.

Sac County Bankers Hire
Extra Conservationist
The Sac County Bankers Associa
tion took action at its recent annual
meeting to match Federal funds in
hiring a second man to work in the

Sac County Soil Conservation district
for the balance of the present fiscal
year which ends June 30, 1948. The
banks of the county agreed to pay half
of the salary of an assistant in the
local soil conservation service office if
the federal bureau would meet the
other half.
M. E. Currie, cashier of the State
Bank of Schaller and president of the
association, introduced Wayne Irwin
of Sac City, one of the commissioners
of the Sac County soil conservation
district, to the group at the Park
Hotel. Mr. Irwin told of a meeting
with federal men who practically as
sured the county of additional help if
part of the funds could be raised
locally for the balance of the present
fiscal year.
O. R. McMurry, Soil Conservation
Service technician for Sac County,
was then introduced to the meeting
and he explained in more detail the
actual steps taken in the mapping,
planning and actual practice of the
soil conservation program on the indi
vidual farms.
After the talks a number of ques
tions were asked by members of the
group. At the annual business meet
ing which followed, the bankers as
sociation voted to make their contribu
tion to the program as a step in the
way of education on the needs for soil
conservation in the future.
Election of officers for the coming
year for the Sac County Bankers As
sociation placed R. L. Goodenow,
President of the Wall Lake Savings
Bank, in the presidency. G. L. Hill,
cashier of the Sac City State Bank,
was named vice president, and C. W.
Shaw, cashier of Wall Lake Savings
Bank, was named secretary-treasurer.

New Manager
Dillon Merical, well known Adel,
Iowa, ex-serviceman, was recently
named as manager of the Dallas Coun

Did you know that your Banker’s Blanket Bond
does not protect your Cash Letter while it is in
transit by mail or express? Ask about our
Cash Letter Policy, which fills the gap.
F IR S T

N A T IO N A L

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Federal Reserve Bank of St. Louis

BANK

B U I L D IN G

•

C H IC A G O

Rolland W. Hall, president of the
Farmers and Merchants State Bank,
Minden, Iowa, was named president of
the Pottawattamie county banker’s
association at the annual meeting held
at Nonpareil auditorium last month.
Mr. Hall succeeds Einer P. Juel of
Council Bluffs, who held the post last
year.
Charles Hannan of Council Bluffs
was named vice president, Walter
Davis of Avoca re-elected treasurer
and Glen Barnes of McClelland was
elected secretary.

W. J. Netolicky, M.D.
W. J. Netolicky, M.D., president of
the Swisher Trust and Savings Bank
of Swisher, Iowa, passed away recent
ly. In January of this year, Dr. Neto
licky served his twenty-sixth year as
director and of that term, he devoted
twenty-five years to the office of presi
dent, which position he held at the
time of his death.
J. Alfred Witousek was appointed
director to fill the board vacancy.
Joseph C. Coufal was elected presi
dent for the unexpired term by reason
of the death of Dr. Netolicky, and
G. C. Chadima was elected vice presi
dent for the unexpired term vacated
by Joseph C. Coufal.

Assumes New Job
Jay J. DeLay, assistant cashier at
the Farmers Savings Bank, Remsen,
Iowa, the past five years, became cash
ier of the Pocahontas State Bank at
Pocahontas, Iowa, December 1st.
In taking the new post Mr. DeLay
will succeed the late L. E. Eckerson,.
who died two months ago and who
had been cashier at Pocahontas for
several years.
Mr. DeLay’s departure will be re
gretted by many bank patrons and his
active participation in civic affairs
will be missed. He came here with
his family early in 1924, was in the
army for two years during the recent
world war and returned to his posi
tion in June, 1946. His successor at
the bank has not been chosen.

Scarborough & Company
Insurance Counselors
3,

IL L IN O IS

•

STATE

4325

Northwestern Banker, December, 1947

Iowa News
of the women employes shopped for
the new furniture and for the ac
cessories.

Open N ew fín nh O ffices

New Vice President

MODERN BAN K IN G OFFICES were onened in Strawberry Point, Iowa, last
month by the Union Bank and Trust Company’ . This exterior view shows the
buff colored brick siding on the new 44 by 80 foot building which houses the
most modern of bank equipment, including soundproof rooms for bookkeepers,
air conditioning, five patrons’ windows, 1,000 safe deposit boxes and a full base
ment which w ill house the ba n k ’ s records.
Officers of this fine institution, which boasts over $2,500,000 in deposits, are:
William Eieniets, president ; J. J. Matthews, vice president, and George Dunfrund,
cashier.

Open House

Women employes of the State Bank
of Fort Dodge, Iowa, held open house
for bank officials and employes in
their newly redecorated lounge follow
ing closing hours one afternoon last

month. The occasion also honored
John Haire, Sr., a former director on
Iris birthday.
Cost of the painting and furniture
which is completely modernistic was
footed by the bank. Representatives

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7947

.John Jargo has been elected vice
president of the Jackson State Sav
ings Bank, Maquoketa, Iowa, a position
left vacant by the death nf M. O.
Sagers.
He was elected to the vice presi
dency at the November board of di
rectors’ meeting and will hold this
position in addition to being cashier
of the bank.
Mr. Jargo has been in the bankingbusiness since 1915 when he started
his career in Preston. He has been
associated with the Maquoketa bank
for 25 years. For the past five years
he has been the head of the personal
loan department.
L. S. Fuller was elected to take
charge of installment loans.

Monona Officers
New officers of the Monona County
Bankers Association were elected at
the meeting of county bank owners
and employes in Onawa last month.
A dinner in the Onawa Lutheran
church preceded the business meet
ing. About 25 persons attended.
E. W. Nun, cashier of the Ute State
Bank, in Ute, Iowa, was chosen presi
dent; A. H. Bruning, cashier of the
Mapleton Trust & Savings Bank,
Mapleton, Iowa, was named vice presi
dent; and Harold Kunze of the Ute
bank was elected secretary and treas
urer.

Sell Webb Bank
Wayne Hopkins, an assistant cash
ier in the Spirit Lake National Bank.
Spirit Lake, Iowa, for five and onehalf years, took over as cashier of the
Citizens State Bank of Webb, at Webb,
Iowa, last month. He and E. G. Untiedt of Terrill, Iowa, have purchased
controlling interest in the bank from
R. S. Davis of Milford, Iowa, and R. W.
Sanders of Webb.
Wilbur Bittinger of Webb remains
as president of the bank, Mr. Untiedt
is the vice president, Mr. Hopkins is
cashier, and the board is completed by
Morgan Cornwall of Spencer, Iowa,
and Charles Fitzsimmons of Webb.
Mr. Untiedt will remain in Terril
where he is president of the State
Bank. He is also a director of the
First National Bank of Wilmont, Min
nesota.
For the present, there will be no
change in status of the bank personnel
at Spirit Lake. R. J. Cornell is cash
ier, and the assistants are David Cuttell and Gladys Warren.

Serving both Industry
and Agriculture

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Federal Reserve Bank of St. Louis

Located in the heart o f the Union Stock Yards
and Chicago’ s great Central Manufacturing
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P T /ie

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BANK

W / r c a fjf)

lÀ a fâ o n a /

E ST A B L ISH E D 1868

U N ION

STOCK YARDS

M em ber F ed era l D eposit Insurance Corporation

Northwestern Banker, December, 1947

Iowa News

Cashier Resigns
Arnold J. Petznick, cashier of the
Home Trust & Savings Bank at Osage,
Iowa, for the last year and one-half,
has resigned.
Mr. Petznick went to Osage with
20 years of banking experience, most
recently in San Diego, California. Mrs.
Petznick is teaching school in Cali
fornia and he will return there to join
his family.
He is a former cashier of the First
State Bank of What Cheer, Iowa.

Elect Officers
Robert Henstorf, Jr., cashier of the
First National Bank in Farragut, Iowa,

was elected president of the South
west Iowa Bankers Association at
their quarterly meeting held in Glenwood last month. C. W. Fishbaugh,
assistant cashier Security Trust and
Savings Bank, Shenandoah, is retiring
president.
Other officers elected were Earl
Schneckloth of Glenwood, vice presi
dent; Thresa Stitt, Clarinda, secretary
and Mrs. Edith Jones of Red Oak,
treasurer. Speaker of the meeting
was Arthur C. Larson, assistant spe
cial agent for the FBI in Omaha. Uni
form service charges was the main
discussion of the business meeting.

Joins Kosek Firm
John W. Donnelly, manager of the
Cedar Rapids office of the Federal Se
curity agency since 1939, has resigned
to join Ernest Kosek & Company as
a representative.
Prior to his resignation, Donnelly
was the oldest employe in point of

BETTER WITH AGE
W e think good correspondent service should in
crease in dependability through the years.
Many banks in the four state area served by Sioux
City feel that way too about First National Bank
service. For complete and dependable service, they
recommend this institution.

JOHN D O N N E L LY
Joins Cedar Rapids Investment Firm

service with the Social Security ad
ministration in Iowa. He was in the
original training group sent out from
Washington, D. C., in November of
1936 to open a social security field
office in each state.
Donnelly served as assistant man
ager of the Des Moines field office until
July of 1938, when he opened a new
field office at Waterloo.
A native of Burlington, Donnelly
was an honor graduate of the college
of commerce, University of Iowa,
where he received his degree in 1931.
He is married and resides with his
wife and three children at 1919
Grande avenue SE.

A. G. Sam, President
Fritz Fritzson, Vice Pres, and Cashier
E. A. Johnson, Assistant Cashier
J. T. Grant, Vice President
H. H. Strifert, Assistant Cashier
J. R. Graning, Assistant Cashier
K. J. Shannon, Assistant Cashier
J. Ford Wheeler, Auditor
MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Starts New Term
V. W. Johnson, president of the
First National Bank of Cedar Falls,
Iowa, recently was advised of his reelection to a three-years term as mem
ber of the Seventh federal reserve
hoard.
His new term will begin January 1,
1948. The headquarters of this dis-

BANKS

Bought and Sold

Confidentially and with becoming dignity

★

A /

S / o u X

C / ftf

★

BANK EMPLOYEES PLACED.
42 Years Satisfactory Service

THE CHARLES E. WALTERS CO.
OMAHA, NEBRASKA

Northwestern Banker, December, 1947

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Federal Reserve Bank of St. Louis

OUR SINCERE
APPRECIATION
FOR YOUR GOODWILL
AND PATRONAGE
IN 1947

VALLEY BANK AND TRUST COMPANY

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Federal Reserve Bank of St. Louis

DES M O I N E S
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, December, 1947

Iowa News
The directors are H. C. Haug, Roy V.
Novak, C. J. Andera, Fred Marek and
John Junko.
The bank assets total $1,100,000.

trict is Chicago and the board repre
sents Iowa and parts of Illinois, Mich
igan, Indiana and Wisconsin.
Johnson is a member of the board
of directors of the organization, which
meets weekly. The full board meets
regularly once a month.

Increased Capital
The State Bank & Trust Company
of Nevada, Iowa, has increased its
capital stock to $100,000 by declaration
of a 100 per cent stock dividend at a
special meeting of the stockholders
held recently. This bank started with
capital stock of $40,000 in 1939 and the
present capitalization is in keeping
with the rapid growth of the institu
tion.

Elect H. C. Haug
At the annual Citizen’s Savings
Bank stockholders meeting held last
month at Spillville, Iowa, the follow
ing were elected:
H. G. Hang, president; C. J. Andera,
vice president; Roy V. Novak, cashier:
Adolph Novak, assistant cashier and
manager of the Ft. Atkinson branch.

★

S E R V I N G ...
NORTHEASTERN
IOWA HUSINESS
Prompt, efficient and complete
banking

facilities

make

S iou x City N ew s
P LANS for the annual state conven
tion of the Iowa Mortgage Bankers
association are progressing in fine
style, according to M. C. Eidsmoe, head
of the Woodbury County Savings
Bank and also president of the
I.M.B.A.
Mr. Eidsmoe said the annual conven
tion, for which some 100 persons are
expected to register, will be held in
Sioux City January 19th and 20th.
Meeting place for the state conven
tion has not been definitely set, Mr.
Eidsmoe said, but there will be a full
program of activities, he assured mem
bers of the association throughout the
Hawkeye state.
One of the main matters for the con
vention will be the election of officers
for the coming year.
“Be Ralph R. Brubacher’s secretary
and get married” is getting to be a
slogan at the Toy National Bank.
For 14 years, the president of that
Sioux City bank had the same secre
tary. Then she left.
Now, in rapid succession, three sec
retaries have left Mr. Brubacher to
get married.
How about the present girl?
Mr. Brubacher doesn’t want to be
quoted on her chances as it might “put
her on the spot.”
John J. Gordon, assistant manager
of the Toy National Bank personal
loan department since his discharge
from the army, has been elected cash
ier of the First Trust and Savings
Bank of Alta, Iowa, an affiliate of the
Toy National Bank. He succeeds H.
H. Wetzeler, who is now with a bank
at Akron.
Mr. Gordon has been associated with
the Toy National Bank and its affili
ates since 1930. He formerly was con
nected with the First Trust and Sav
ings Bank of Remsen, Iowa.

this

bank your logical choice for
Northeastern Iowa business.

The 12th annual Christmas dinner
and party for officers and employes of
the Security National Bank will be
held in the Warrior hotel the evening
of December 18th. according to C. R.
Gossett, president.
More than 60 persons are expected
to attend the dinner and party which
will feature Santa Claus.

★

Northwestern Banker, December, 7947

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

★

Members of the Live Stock National
Bank’s 25-Year Club were entertained
at a stag dinner party in the Warrior
hotel last month and four new mem
bers were presented with gold Hamil
ton wrist watches with their names
engraved on them.
Receiving the

Iowa News
watches, presented by Byron L. Sifford, a director, were Mark A. Wilson,
James B. Smith, C. D. Phillips and
R. A. Jensen.
W. C. Schenk and \V. G. Nelson,
previously awarded their watches for
entrance into the club’s membership,
were present as were President Carl
A. Fredricksen and Assistant Cashiers
Henry C. Binduski, Clifford B. Adams
and John S. Haver.

Directors present other than Mr.
Sifford included George F. Silknitter,
Harold C. Boswell and Charles R. Mc
Kenna.
Katherine Anthens, only feminine

member of the club, missed out be
cause it was a stag.

second with 11. They were awarded
a turkey and a chicken for their prizes.
Trailing Win Graf in second place
in the men’s division was John Mc
Cormick.
Lehman Plummer, vice president of
the Central National Bank and Trust
Company, long regarded as one of the
top experts in the country on con
sumer credit, has been named chair
man of the A.B.A.’s consumer credit
committee. In recent months Mr.
Plummer has been flooded with re
quests to appear before all types of
company and association meetings to
discuss consumer credit.

The Central National Bank is spon
soring a girls’ basketball team this
year that has some outstanding na
tional players. Most prominent mem
ber is Joy Crowell of Cromwell. Iowa,
who was high scorer in the 1947 na
tional tournament last spring and was
selected as an All-American forward.
Four of the team members who work
in the bank are Pauline Hansen,
Thayer, Iowa, awarded All-State men
tion for her play at forward; Edith and
Belva Sperry of Follett, Texas, AllTexas guard and forward respectively
for three years, and Joanne Sandvold
of Roland, Iowa, an All-Sectional for
ward.

Stanley W. Evans and Wilma Pick
ens of St. Louis, Missouri, were mar

ried in the Westminster Presbyterian
church at Dayton, Ohio, recently.
They honeymooned for two weeks at
Niagara Falls and in Canada.
Mr. Evans has been out of military
service for only two months. He was
two years as Chief of Finance in the
European theater with the rank of
major and later served six months in
the finance office at St. Louis before
his separation.
The bridegroom had been connected
with the Live Stock National Bank
for seven years prior to his military
service.—The End.

iPcs M o in v s N ew s
S TAFF members of the Iowa-Des
Moines National Bank and Trust
Company and their families gathered
at Meredith Grounds on Beaver Road
in Des Moines last month for a re
vival of the popular annual Blackburn
Shoot. There were 160 in attendance
as Win Graf blasted 22 out of 25 clay
pigeons to win the championship.
The Blackburn Shoot, which was
necessarily discontinued during World
War II, honors the memory of Harry
T. Blackburn, who was a vice presi
dent of the Iowa-Des Moines National
Bank. His widow, Mrs. Blackburn,
was on hand again this year to greet
the bank staff.
Mrs. E. T. Meredith entertained ev
eryone at an out-door dinner party.
She had prepared a unique cake, which
was taken to the bank and displayed
in the bank lobby the following day.
Mrs. Bester Marehant topped the
women’s division by shooting 12 out
of 25 birds, and Martha Weeks was
YOUR STATE BANKERS ASSOCIATION!
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

Understanding
Means
Satisfactinn
It's always much easier to serve the other fellow
when you've been in his shoes.

Most of us

who deal with correspondents have had in
valuable grass-roots experience — experience
that money can't buy.

W e're proud of that

because it helps us give that extra measure of
satisfaction that comes from understanding.
Next time you need correspondent service, think
of our from-the-ground-up experience in bank
ing.

Member
Federal Deposit
Insurance

(ò iic p in r

X NATIONAL RANK

Corporation

F. E. DAVENPORT & CO.
OMAHA

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Federal Reserve Bank of St. Louis

Northwestern Banker, December, 1947

Iowa News

The H ea l H o lid a y Spirit

the SPEBSQSA clan gather for a day
or two of fun, then you haven’t enjoyed
good male singing. This organization
has grown tremendously in the past
three years and sticks to the business
of promoting good fellowship through
the medium of quartet singing.—The
End.

A COUNTRY BANKER
CHECKS EUROPE

THE HO LIDAY SPIRIT is manifested in the lobby o f the First State Bank,
West Branch, Iowa, by these beautiful Christmas decorations. The entire bank
interior is resplendent with both the gay and serious aspects of Christmas. Atop
the teller’s windows at the right can be seen miniature pine trees around which
are small figures appropriate to the Bethlehem N ativity setting.

The annual Christmas party for
members of the Iowa-Des Moines Na
tional Bank’s staff and their wives and
husbands will be held on December
22nd in Younkers Tea Room. New
members of the 25-Year Club will be
introduced after dinner and presented
with watches in recognition of their
many years of service. Dancing and
entertainment will follow the dinner.
A 30-voice chorus, under the direc
tion of Ray Jones, trust officer, will

★

□ur
0 6 th
C h ristm a s
to h e lp m ak e
Io w a ’s m e n an d h o y s
h a p p y w ith the
rig h t g ifts

Frankel’s
DES MOINES

Northwestern Banker, December, 1947

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

be heard again this year during the
holiday season at the Central National
Bank and Trust Company. The chorus
is composed of bank staff members.
It is usually heard during the noon
hour when the carolers gather on the
balcony overlooking the bank lobby.
Just to prove further that bankers
in Des Moines are in good voice this
year, Bob Boudewyn, teller at the
Bankers Trust Company, was a mem
ber of the quartet which won third
place recently in a regional quartet
contest held at Wichita, Kansas. The
contest was sponsored by the Society
for the Preservation and Encourage
ment of Barber Shop Quartet Singing
in America, and if you haven’t heard

(Continued from page 42)
where we had a good dinner in a
picturesque little restaurant nestled
against the shores of beautiful Lake
Lucerne. Following the return trip
to Zurich we took an auto trip around
the Lake of Zurich, driving through
countless little hamlets in the shadows
of the peaceful Alps. Zurich is the
commercial and financial center of
Switzerland, and had no apparent dis
tress although bread was rationed fol
lowing the severe drought of this sum
mer, and crops were mostly failures.
Switzerland is one of the most highly
developed countries in the world in re
gards to the use of electric power de
veloped from their many streams. This
year, rationing of power may be nec
essary, as the streams have fallen so
low. Here in Zurich, in direct con
trast to other countries, plenty of
goods were for sale, prices appeared
to be about in line with those of the
United States.

IOWA • LITHOGRAPHING • COA\PANY
515 TWENTY EIGHTH STREET

DES ■M O I N E S

Iowa News
France— Four Days
We arrived in Paris on Saturday
afternoon of the 18th, still on the beam
on our personal schedule. We found
the city in the midst of the subway
strike with great crowds of people con
gregating in the Place de la Concorde
to be taken home in open army trucks.
This was the day just prior to the
election so there seemed to be a lot
of political discussion. There was no
heat in the hotel, in spite of the hotel’s
magnificence. The power was turned
off on Monday and Tuesday so we had
to walk up the stairs to our floor. The
French stores observe the five day
week literally, closing on Monday.
The Folies Bergere provided our
evening entertainment . . . a long
three and a half hour show and not
much change since I saw the show
as a doughboy in 1918.
Sunday we took the train to Caen
and then along the Normandy inva
sion coast to Omaha beach. There are
a large number of ships still riding in
the American built harbors. It was
apparent that the English in the inva
sion of June of 1946 had level beaches
for their assault while the Americans
had to overcome the high cliffs which
proved so costly in casualties. Caen
is terribly bombed, but the next town
of Bayeux is relatively unharmed and
still has its beautiful cathedral. We
also visited Rouen where I had served
in World War I, which place had also
been severely bombed around the
docks and the cathedral.
It would seem that France had
gone through the worst of its crisis in
economic affairs, everywhere the dam
aged railroads, roads and buildings
are being very rapidly repaired and
restored to normal. But this has been
financed by the government through
inflation of the French franc in issu
ing a large amount of paper currency,
so the value in comparison with the
American dollar is such that one thou
sand francs worth $200 in 1919, $40 in
1927, are now worth only $4.
Sticking my neck out, 1 can predict
that De Gaulle will be in power in
France, at least by April of next year.
Under his able administration France
will recover very rapidly.

31 hours direct to Chicago. This was
a DC-4 plane and it seemed as if that
Wednesday night would never end, as,
of course, we were going away from
the rising sun and the night must
have lasted at least 17 hours. A short
stop of one hour was made at Shan
non, Ireland. We had tea and refresh
ments at the charming airport lounge.
Ireland has a good crop this year and
seems to administer its affairs in a
very efficient manner. The long ten
hour ride over the ocean was just a
monotonous airplane ride, but the
landing at Gander in Newfoundland
was very rough. This is a very windy
place—one of the largest airports in
the world is here, and it was the take
off spot for the planes we ferried to
Europe by thousands during the war.
Daybreak came at Montreal, Canada.
We were happy to land in Chicago
and then on to Lincoln, where we
drove home.
Summing up, we want to say that
we were most courteously handled in
all countries by the customs and the
currency officials and had no difficul
ties in any manner. The people were
very helpful and friendly in all except
Germany where their sullen, still-arro
gant attitude will always leave a last
ing impression. President Truman is
to be very highly commended for his
calling of the special session of Con
gress to deal with European relief.
And as time is the essence of all
things, speedy aid should be given in
regard to food for those in want. How
ever we should profit by our past mis
takes and the administration should
be in the hands of competent Ameri
can business men who understand
European conditions. England should
realize that for the present, in view
of the handling of the three and a

half billion dollar line of credit ad
vanced her previously, she is not in a
position to dictate the handling of the
funds required to continue her econ
omy after the first of the year.
Russia is having plenty of home
front troubles so don’t worry about
Uncle Joe.—The End.

Dangerous Osculation
The teacher was giving a health
talk to her class and warned her
pupils never to kiss animals or birds.
“ Can you give me an instance of the
danger of this, Bobby?”
“Yes. My aunt Alice used to kiss
her dog.”
“And what happened?” asked the
teacher.
“ It died.”
FO R S A L E — Burroughs P ro o f Poster,
purchased by us in 1941, in A - l shape,
Model 23-17-41. Guaranteed condition
and has been serviced by Burroughs at
all times. Price $1900. W rite Security
State Bank, Radcliffe, Iowa.

SALE

AND

PURCHASE

BANKS

Bank Employes Placed—
With or Without Investment
C o n fid e n tia l — R e sp o n s ib le — Efficient
OSGOOD, NISSLY & GANFIELD

Iowa Falls, Iowa

DES M OINES BUILDING-LOAN &
SAVINGS ASSOCIATION
Oldest in Des Moines
210 6th Ave.

Dial 4-7119

ELMER E. MILLER
Pres, and Sec.

Starting Home

HUBERT E. JAMES
Asst. Sec.

FOR YOUR ENJOYMENT . . .

There was the usual mix-up in get
ting started home over the TWA air
lines, but we finally left Paris Wednes
day afternoon of the 22nd on a trip of

;T5tehed

Listen to the
“ WORLD OF MUSIC”
KRNT, 1350 KC

1 to 1 :30 p.m. Sundays

SAFETY MAILER ENVELOPE
PATENTED D O U B LE SEAL

Tension Envelope Corp.

M A R Q U E T T l
OF
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STRONG
MEMBER

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Federal Reserve Bank of St. Louis

MINNEAPOLIS

FRIEND
FEDERAL

BANK

DEPOSIT

THE

INDEPENDENT

IN S U R A N C E

MANUFACTURING

B A N K E R ’’

C O R P O R A T IO N

P L ANT

DES M O I N E S 14, I O W A
1012 Grand Ave.
Phone 4 - 4 1 2 6
Northwestern Banker, December, 1947

Just Like That

Con fused

Fully Equipped

A young woman and a handsome
farm lad were walking along a coun
try road together in the evening. The
farm lad was carrying a large pail on
his back, holding a chicken in one
hand, a cane in the other, and leading
a goat. They came to a dark lane.
Said the girl: “ I’m afraid to walk
here with you. You might try to kiss
me.”
Said the farm lad: “How could I
with all these things I’m carrying?”
“Well, you might stick the cane in
the ground, tie the goat to it, and put
the chicken under the pail.”

Wife (scornfully): Men are abso
lutely lacking in judgment and taste.
Husband: You may be right, but did
you ever realize how full of old maids
the world would be if men weren’t
that way?

A moron got rich, and laid out for
himself a lavish estate with all the
fixings he could think of, including
three swimming pools which he proud
ly exhibited to visitors.
“ It’s a wonderful place you got,”
said a friend who had been over the
estate, “but tell me, what’s the idea
of having three pools?”
“Easy,” replied the moron. “One
has cold water, one has hot, and the
other has no water at all.”
The guest shook his head. “ 1 see
the idea of the first two,” he admitted,
“but what the cryinoutloud is the
point of a pool with no water in it?”
The host dismissed the question
with a shrug. “You’d be amazed,” he
explained, “how many of my friends
can’t swim a single stroke.”

Of Course
Dealer: “ It’s a genuine antique,
sir.”
Customer: “But you are asking a
fearful price for it.”
Dealer: “Well, sir, look how wages
and the cost of materials have gone
up!”

Lady Driver
Doctor: Why did you have 764023
tattooed on your back?
Patient: That isn’t a tattoo. That’s
where my wife hit me with the car
while I was holding the garage door
open.

Clean Story
Inquisitive lady: Tell me, do you
ever do anything in the nude?
Artist: Well, ma’am, occasionally T
take a bath.
I

I o w a - D e s M o in e s N a t i o n a l B a n k an d
T r u s t C o m p a n y ............................................. 64
I o w a L i t h o g r a p h i n g C o m p a n y .................. 60

IN D E X OF

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

A D V E R T IS E R S

L a M o n t e , G e o r g e an d S o n .............................
L e s s i n g A d v e r t i s i n g C o m p a n y ..................
L iv e S t o c k N a t i o a n l B a n k — C h i c a g o . . . .
L i v e S t o c k N a t io n a l B a n k — O m a h a .........
Live Stock National B an k— Sioux City. .

DECEMBER 1947
A

A llie d M u t u a l C a s u a l t y C o m p a n y ........... 34
A m e r i c a n E x p r e s s C o m p a n y ...................... 38
A m e r i c a n N a t io n a l B a n k a n d Tr. C o.. . . 36
It

B a n k e r s T r u s t C o m p a n y — D es M o i n e s . .
Bankers T ru st C om p a n y — N ew Y o r k . . .
B a n k s , W i l l i a m H., W a r e h o u s e , I n c . . . .
B u c k h a m , H. B., an d C o m p a n y , I n c ........
B u r r o u g h s A d d i n g M a c h in e C o .................
C
C en t r a l N a t io n a l B a n k — C h i c a g o .............
C en t r a l N a t io n a l B a n k a n d T r u s t C o . . .
C ha se N a t io n a l B a n k ......................................
C ity N a t io n a l B a n k an d T r u s t C o m
p a n y — C h i c a g o ...............................................
C o n t i n e n t a l B a n k an d T r u s t C o m p a n y . .
C o n t in e n t a l N a t i o n a l B a n k — L i n c o l n . . .

63
23
42
27
5
26
12
6
42
32
50

M a r q u e t t e N a t i o n a l B a n k ...........................
M e r c h a n t s N a t i o n a l B a n k .............................
M i n n e s o t a C o m m e r c i a l M e n ’ s A s s n ........
M i s s is s ip p i V a l l e y T r u s t C o m p a n y ...........
N a t io n a l
N a t io n a l
N ational
N orth ern

60
14
60
55
52
40
35
2
34
32

B a n k o f C o m m e r c e ...................... 49
B a n k o f W a t e r l o o ......................... 58
8
C ash R e g i s t e r C o m p a n y ...........
T r u s t C o m p a n y ............................. 35

P u b l i c N a t io n a l B a n k an d T r u s t C o ........

4
48
28
56
49
25
60

H a m m e r m i l l P a p e r C o m p a n y ....................
H o m e I n s u r a n c e C o m p a n y ...........................

Northwestern Banker, December, 1947

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7
3

A stalwart New Englander had
reached the age of 100 and was being
interviewed.
“ I suppose,” said the reporter, “that
you have seen a lot of changes in
your time.”
“Yes,” replied the centenarian, “and
I’ve been agin every one of them.”

C O N V E N T IO N S

St. 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 30
S c a r b o r o u g h an d C o m p a n y ............. 33 ,4 8 ,5 3
S e c u r i t y N a t i o n a l B a n k ............................... 59
S ta p les P re s s, I n c .............................................. 54
T

F i r s t N a t io n a l B a n k — C h i c a g o ..................
F i r s t N a t i o n a l B a n k — O m a h a ....................
F i r s t N a t io n a l B a n k — St. L o u i s ................
F i r s t N a t io n a l B a n k — S i o u x C i t y ...........
F i r s t St. J o s e p h S t o c k Y a r d s B a n k .........
F i r s t W i s c o n s i n N a t io n a l B a n k ................
F r a n k e l C l o t h i n g C o ........................................

Old Reliable

O m a h a N a t io n a l B a n k .................................... 21
O s g o o d , N is s ly & G a n f i e l d ............................. 61

D a v e n p o r t , F. E. an d C o m p a n y ............ 49-59
D e L u x e C h e c k P r in te r s , I n c ........................ 24
D es M o in e s B u i l d i n g , L o a n & S a v i n g s
A s s o c i a t i o n ..................................................... 61
D iebold , I n c ........................................................... 39
D r o v e r s N a t io n a l B a n k ................................. 31

Check
Poet: “This world is very unfair.”
Friend: “How so?”
Poet: “Well, a banker can write a
bad poem and nobody does anything
about it, but just let a poet write a
bad check.”

T e n s i o n E n v e l o p e C o m p a n y ......................... 61
T o o t l e - L a c y N a t io n a l B a n k ..................... 50,51
U
U n it e d S ta te s N a t io n a l B a n k ...................... 44
V

V a l l e y B a n k and T r u s t C o m p a n y ...........

W a l t e r s , C h a r le s E. C o m p a n y ....................
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ........
W h e e l o c k a n d C u m m i n s ...............................

57
56
34
30

June 11-12, 1948, North Dakota and
South Dakota Joint Convention
in the Twin Cities.
June 15-16, 1948, Minnesota Bankers
Association, Minneapolis.
October 24-27, 1948, Annual Conven
tion Iowa Bankers Association,
Des Moines, Hotel Ft. Des Moines.

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Federal Reserve Bank of St. Louis

☆

IF IS E A i E N

of all time have realized the value of Good Will.

And so, among our assets, we treasure most highly the Good Will of
our correspondent bankers.

To you, and to all our friends in the

banking business, we sincerely wish a Christmas of great joy and a
New Year of health and prosperity.

BANKERS TRUST COMPANY
6th and Locust, Des Moines
Member Federal Reserve System

Member Federal Deposit Insurance Corporation

☆

DES MOINES....
A Grain Center

Des Moines is occupying an 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.

STRONG,

DEPENDABLE

CORRESPONDENT CONNECTION

I0WA-DES MOINES NATIONAL BANK
&

TRUST

COMPANY

Sixth and Walnut

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Founded 1875
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Full text of The Northwestern Banker : December 1947, 52nd Year, No. 725

FRASER