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https://fraser.stlouisfed.org 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. ‘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. https://fraser.stlouisfed.org 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 in From an old daguerreotype the management of 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DEPOSIT INSURANCE CORPORATION ★ 5 G RIM NEWS (ROM THl NATION’S TOUR tAGES. * * » « * m m 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 service to find that window transactions move faster, internal operations become more efficient, records are more legible, more accurate, more informative. 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 furnish you the full details of this modern teller’s tool . . . the story of the machine itself, its success in other banks, its boon to customer relations. Get the facts today! https://fraser.stlouisfed.org 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 6 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 to 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Colon • • • • Bush House, Aldwych Cristobal • Balboa Cairo • Hong Kong Bombay • Tientsin https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 “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 8 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. e / f ta f a m a l CASH REGISTERS • ADDING MACHINES ACCOUNTING MACHINES THE NATIONAL CASH REGISTER COMPANY Dayton 9, Ohio. Sales and Service Offices in over 4 0 0 cities. Northwestern Banker, December, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis One 9 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......... 10 "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 https://fraser.stlouisfed.org 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 ............................................................................... 43 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....................................... ........................................... .......... 59 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 .............. 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. 9 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 10 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 https://fraser.stlouisfed.org 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 y « ‘ ‘ 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1947 12 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Those who reach the top usually arrive by learning to do one thing superlatively well ■ - ; L ; SAFETY PAPER FOR CHECKS lorn"'1"("11' G E O R G E L A M O N T E & S O N , NUTLEY, N E W JERSEY *v:?: ^ p a \ o N ftL OttUi*0*' ..... HyH05SÄ A Check Paper All Your Own S-. Thousands o f banks and many o f the larger cor porations use LaMonte Safety Papers with then: own trade-mark or design made in the paper it self. Such INDIVIDUALIZED check paper provides maximum protection against both alteration and counterfeiting — makes identification positive. Northwestern Banker, December, 1947 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THi WAVY UNtS ® M t ft tA »ON TE TRAPS-MARK ■ 15 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 T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 16 \ 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. W 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 We 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Menu 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 A 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. C 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 18 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. T 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 20 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 H 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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 22 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 https://fraser.stlouisfed.org 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 B. 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 https://fraser.stlouisfed.org 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 24 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25 “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 of 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 https://fraser.stlouisfed.org 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 OF 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 OF 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • M em ber F e d e ra l R e se r v e System 27 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 https://fraser.stlouisfed.org 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, Gold Bond ACOUSTIFIBRE BUILT TO TRAP N OISE M AD E FRO M N O ISE R ED U C TIO N SELEC TED P LE A S IN G WOOD C O E F FIC IE N T FIBRES 65% A PPEA R A N CE HIGH LIGHT REFLEC TIO N S A N IT A R Y — C L EA N A B L E IN STA LLED BY EXPERTS FOR NEW CONSTRUCTION OR M ODERNIZIN G Churches, Restaurants, and Public Buildings Wherever people are occupied, the need for acoustical correction and noise reduction becomes apparent. Disturbing noise reduces efficiency, lowers morale, increases absenteeism and impairs health. All of which is reflected in production costs. GOLD BOND ACOUSTIFIBRE installations will remove these obstacles, completely and perma nently— at a surprisingly low cost. Write, wire or telephone for complete information. Prompt service anywhere in Iowa. TELEPHONE 3-4241 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 20 Y e a rs cf S e rv ic e to Des M oines and ÂI! Io w a H. B. BUCKHAM &C0 . Specialists in A coustical Engineering 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 https://fraser.stlouisfed.org 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. 29 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. P 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 https://fraser.stlouisfed.org 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 30 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 AND THE OPENING OF A CHICAGO OFFICE ROOM 2348 FIELD BUILDING 135 SOUTH LA SALLE STREET WHEELOCK & CUMMINS I NC OR P O R A T E D 200 EQUITABLE BLDG. - PHONE 4-7158 DES MOINES, IOW A CHICAGO TELEPHONE ANDOVER 6700 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 31 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 32 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 https://fraser.stlouisfed.org 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) 33 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 3, IL L IN O IS STATE to Banks 4325 N orthwestern Banker, December, 1947 Insurance 34 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 SPECIAL OFFER Accident Insurance, $5000 Principal Sum for only $2.00 Paid Up in Full to the Middle of next March. MINNESOTA COMMERCIAL MEN'S ASSO CIATIO N 2550 Pillsbury Ave. So. Minneapolis 4, Minnesota 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 M 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 35 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 36 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 1 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. 37 Minnesota N E 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W 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 38 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 Going Great Guns! A merican Express Travelers Cheques on the Air with Tune in ABC Network Wi WEDNESDAYS 8:30 P.M. VO X PO P EST the Show that Travels Am erica Consult y o u r p a p e r fo r lo cal tim e w it h P a r k s J o h n s o n a n d W a r r e n H u ll! Banks already are reporting that VOX POP is bringing in businessincreasing their sales of American Ex press Travelers Cheques —increasing bank customer traffic! And no w o n d e r!—for this new American Express Travelers Cheque show is the biggest promotion for Travelers Cheques ever undertaken anywhere! Get your share of this new busi ness. Set up your own local promo- tion of American Express Travelers Cheques. Four-fifths of the selling job is com pleted before you start. Recommend American Express Travelers Cheques to your clients —then watch sales climb! For effective point-of-sale promo tion material write W. H. Stetser, Vice President, American Express Company, 65 Broadway, New York 6. Sell Your Custom ers A m e r ic a n E x p r e s s T ra velers C heques most w id e ly know n—most read ily accepted Northwestern Banker, December, 1947 https://fraser.stlouisfed.org 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. 39 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 t M. 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. https://fraser.stlouisfed.org 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 BANK D IV IS IO N Diebolcl I N C O R P O R A T E D Now includes York Vaults—McClintock Alarms Canton 2, Ohio ★ BANK VAULT BURGLAR CHESTS EQ U IPM EN T ALARMS AND VAULT • SAFES, DOORS M ICROFILM • ROTARY, VERTICAL A N D VISIBLE F IL IN G E Q U IP M E N T H O L L O W M E TA L D O O R S A N D TRIM IN CHICAGO— 201-7 N. Michigan Avenue IN DES MOINES— 505 Fifth Avenue IN ST. P A U L 2367 University Avenue Northwestern Banker, December, 1947 40 Minnesota News named chairman tivities. of promotion ac 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 M L i v e S 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 42 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 E fife e tiv e e o -o r d i n a t i ou o f all departm ents assures rapid, efficient h an dling o f every type o f banking transaction. You are in v ited to use a n y or all o f our facilities. C ity N a t io n a l Han k A N D TR U ST C O M P A N Y o f C h ic a g o 2 08 SOUTH LA S A L L E STREET 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 https://fraser.stlouisfed.org 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. 43 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.” A 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 44 y 1948 S JANUARY OUND^ A N K 1N G E R V IC E ) N orthw estern Banker, https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 46 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, G 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 48 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 49 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 TIMELOCK EXPERTS 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1947 50 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 V 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 B R 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 TfeTOOTLE-LACY The Tootle-Lacy National Bank offers its banker friends a flexible, personalized service, based upon a background of 58 years' experience and a sincere desire to be helpful. Your inquiries are cordially invited. Northwestern Banker, December, 1947 https://fraser.stlouisfed.org 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 ASST. CASHIER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 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 52 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 OF Federal Northwestern Banker, December, 1947 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 54 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 W EALTH ADD THESE IMPORTANT B O O K S TO YOUR LIBRARY by Edwin Cannan, late Emeritus Professor of Political Econ omy. A standard work on Economic Welfare, has been translated in Span ish, Polish, Japanese, Braille. $2.50 MONEY A revised, up-to-date study of its relation to rising and falling prices by Edwin Cannan. Now in Eighth Edition. $2.25 “BUY YOURSELF. 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Y. • • • • • Please □ accept check □ bill me for $ ............................. covering- delivery o f : □ Central Banking □ Wealth □ Money □ Economics and Technology □ Essays in Monetary Theory □ Money and the Machine Age □ Elements of Statistics. Send t o : NWB-1 Name ......................................................................................... Address ..................................................................................... Use coupon to order NOW— ALL CASH ORDERS SENT POSTAGE PAID N orth w estern B an ker, D ecem ber, ^ STAPLES PRESS, Inc. MONEY AND THE MACHINE AGE T. W. Wyatt answers the many e co neorn micpqro uestio nsnrap ise ders by th e m od ductio ow re garding distribution, employ ment, living standards, nation alism. $1.75 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CENTRAL BANKING 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. do Serving both Industry and Agriculture https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Located in the heart o f the Union Stock Yards and Chicago’ s great Central Manufacturing District, we have served farmer and manufac turer as well as hundreds o f correspondent banks for over three-quarters o f a century. This long and varied experience is at your disposal. I f you are seeking a Chicago connection, we cordially invite you to write us. P T /ie LIVE STOCK 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 56 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57 OUR SINCERE APPRECIATION FOR YOUR GOODWILL AND PATRONAGE IN 1947 VALLEY BANK AND TRUST COMPANY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES M O I N E S MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Northwestern Banker, December, 1947 58 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. 59 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, December, 1947 60 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 61 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 OF 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 " T HE STRONG MEMBER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MINNEAPOLIS FRIEND FEDERAL BANK OF 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 62 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 K o c h B r o t h e r s ................................................... A D V E R T IS E R S I, / 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 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 O 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 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.” 26 C O N V E N T IO N S 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 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 I) 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 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. https://fraser.stlouisfed.org 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. A 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