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What About Business
for 1949?
Survey— Pages 14, 15, 16
Federal Reserve Bank of St. Louis


In the daily performance of correspondent service, cir­
cumstances arise which challenge the facilities, the
experience and the judgment of any bank. To meet
such tests, a bank must keep strictly in step with the
been meeting such tests, and the benefit of almost six
decades of experience under continuous management
is yours for the asking.


bm k=

JAMES E. HAMILTON, Chairman Executive
S. E. COQUILLETTE, Chairman of the Board
MARK J. MYERS, Vice President
FRED W. SMITH, Vice President
GEORGE F. MILLER, Vice President and
Trust Officer
MARVIN R. SELDEN, Vice President

R. W. MANATT, Vice President
L. W. BROULIK, Vice President
R. D. BROWN, Assistant Cashier
O. A. KEARNEY, Assistant Cashier
EVERETT C. PRATT, Assistant Cashier
C. F. PEREMSKY, Assistant Cashier
VICTOR W. BRYANT, Assistant Cashier
JAMES E. COQUILLETTE, Assistant Cashier

Cedar Rapids

Iow a

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.
Federal Reserve Bank of St. Louis

A view o f Van Alstynes before preservation was undertaken


With the approach of the Revolutionary
War, Canajoharie became the Valley’s knot
of resistance in the pending fight for free­
dom. As early as 1774, in defiance of Tory
overbearance, a group of local patriots or­
ganized the Tryon County Committee of
Safety, choosing as their meeting place the
home of a sympathetic Van Alstyne. Shortly
after, this same body of men iired the first
shots of the war west of the Hudson River.
Never palisaded but always a strong
point of defense, Van Alstyne House served
as legislative, judiciary and military head­
quarters for the committee through 1775.
The plans and decisions made here during
this time did much to bring about the final
independence of that sparsely settled
country. Almost two years before the
Declaration of Independence, these
patriots of Tryon County had bound
themselves to follow the regulations
set forth by the First Continental
Thereafter, the fame of Van Al­
styne House was such that many dis­
tinguished men and women went out
of their way to pay it a visit. General
Washington himself, and his staff,
dined and lodged here in 1783. A
later guest, Tom Moore the Irish
poet, inspired by this attractive site,

N the New York to Buffalo highway
in the town of Canajoharie stands a
handsome low-lying stone structure— fam­
ous throughout Mohawk Valley as the Van
Alstyne House. Now' the Fort Rensselaer
Club, place of social functions, it w'as once
the chief meeting place of a hardy band of
pre-Revolutionary patriots.
When Marte Janse Van Alstyne built his
house in 1749, he was constructing not only
a home but a vantage point from which he
could closely supervise and protect his near­
by mill. So successful w'ere he and his part­
ner in this and other enterprises that Cana­
joharie soon gained a wide reputation as a
lively and important trade center.


Furnished with early Americana gathered from the
Federal Reserve Bank of St. Louis


—«*» _______





was said to have here begun his famous
poem with the following opening lines:
“ Trom rise of morn to set of sun
J've seen the mighty ’Mohawk run"
Today the Van Alstyne House— its archi­
tecture and masonry faithfully preserved by
the Fort Rensselaer Club— retains its origi­
nal style and dignity. Furnished in true
Colonial style, it houses also many valuable
Mohawk Valley documents, relics and his­
toric works of art. It remains a fitting me­
morial to the enterprising forefathers whose
resourceful efforts were a great contributing
factor in winning the American cause for




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NEW YORK 15, > . Y.


Northwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis



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Northwestern Banker, December, 1948


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Northwest ern Banker. December, 1948
Federal Reserve Bank of St. Louis






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Northwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis


t h iu r B h liío r

Oldest Financial Journal West of the Mississippi

The following letters are from
Northwestern Banker readers. Your
views and opinions on any subject
are welcome in this column.

"your Constructive Viewpoint"
“ We read with interest each publication
of your excellent N orthwestern B anker .
In onr opinion, you are rendering and have
rendered through your exceptionally fine
magazine a tremendously constructive serv­
ice to the dual system o f banking.
“ Speaking o f the dual system of banking,
we feel that the banks and bankers of this
nation should follow most carefully the re­
port o f the Hoover Commission insofar as it
affects banking in that nothing should be
allowed or permitted which would in any
way weaken the confidence of the 90 million
depositors throughout the nation, especially


53rd Year


No. 737

A cross the Desk from the P ublisher ........ ..................... ......... .........


D ear E ditor ......................................................................................................... 9
On the C over.............................................................................................•........... 9
Frontispage ...................... ............. .................................................................. 13
W hat A bout Business fo r 1949?............................................................
.......................................... A N orthw estern B an k er Survey 14, 15, 16
H ow One Bank Make3 K ids H appy at Christm as.... ............................. 17
Bankers Y ou K now — Russell L. Stotesbery............................................ 18
News and View s o f the Banking W orld ..................Clifford' D eP u y 19
Can Trustee fo r an Estate E ngage in S elf-D ea lin g?— L egal............ 20

D ivergent M arket Reactions Follow Election R esults.....................
................................................................. ......................... Raymond Trigger 29

(Turn to page 42, please)


Each Christmas season thousands of
banks throughout the nation join in
the holiday festivities in their own
individual ways—bank lobby decora­
tions, choral groups and Christmas
letters to bank customers.
Typical of the warm, friendly Christ­
mas spirit displayed by the country’s
banks are two features in this Decem­
ber N orthwestern B anker . Our cover
picture shows holiday crowds in the
lobby of the First National Bank of
St. Paul enjoying the musical program
presented by the First National Male
Chorus. This program is g i v e n
throughout the week before Christ­
The music is piped from the main
lobby, where the giant First National
Christmas tree dominates the room,
and is heard on the first five floors of
the bank, in the streets on all four
sides of the bank, and at the four out­
lying First Group banks. The all­
employe chorus is directed by Christo­
pher Herseth, assistant cashier.
Another typical bank observance of
Christmas is outlined in a feature
story about the First National Bank
of Lincoln, this story and accompany­
ing picture appearing on page 17 of
this issue of the N orthwestern B anker .
Federal Reserve Bank of St. Louis

8 Reasons fo r Lon g-R an ge Insurance P rosp erity .... _,.M. R. Dodson 33

M innesota News .................................................................................
Twin City News ..........
South Dakota News .........................................................................................
Sioux Falls News .............................
N orth D akota News .........................................................................................
Nebraska News ............................
J. R. Kenner Named President o f Nebraska Bankers A ssociation
Omaha News ........................... ........ ....... ...................... .........................
Iow a News .................................
M ore Iow a Bankers Convention P ictu res....................................56,
O rigin o f Field W areh ousin g............ ................................ P. W. Frenzel
Safe D eposit Business........................................................ Paul M. Becker
A m erican M inted Coins A re in Great Demand— Coin C ollectors’
Column .......................................................................
Conventions ......................................................................................................


A Few Short Stories to Make Y ou L au gh ...........


.......... ............. 70

527 Seventh St., Des Moines 9, Iowa, Telephone 4-81Ó3
Associate Publisher
Associate Editor
Associate Editor
Advertising Assistant
Circulation Department
Field Representative
Field Representative
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806
MUrray Hill 2-0326
Northwestern Banker, Underwriters Review,
Des Moines Insurance Directory, Iowa-Nebraska Bank Directory.

Northwest ern Banker, Decem ber, 1948

the bank and give it character. Each person
shares in the responsibility of accomplishing a
wide variety of tasks. If you have an active and
sincere interest in business, you want a career
which will test your mettle, one which gives you
opportunity to use all the skill and ingenuity
you can muster, one which brings you into close
personal relationships with many important peo­
ple of varied interests, one which traverses the
whole scope of business in its opportunities—
and one which carries compensation in line with
services rendered— then the banking profession is
worthy of your consideration.”
It is certainly true that “ people make the bank
and give it character” and it is therefore desir­
able from the bank’s standpoint to get high grade
young people to enter the banking profession and
likewise it is up to the banks of the country to
provide proper compensation and working con ■
ditions which will make banking, as a career, a
desirable and worthwhile opportunity for them.

Across tlie llesk
From the Publisher
(DsmJv ¿hUkuA, It). Wx^abt.:
President, Chase National Bank of New York

Not long ago, we attended a bankers conven­
tion where the speaker told of the difficulties of
securing adequate help for banks because young
high school and college graduates were being
lured away by industry which apparently would
provide better salaries and better working con­
AVe were therefore interested, Mr. McCain, to
read your remarks on “Banking as a Career”
and the advantages which young men and women
could find in following banking as a profession.
As you said, “ The college graduate today who
takes up banking will find in it many fields of
interest in which, by ability and hard work, he
may achieve a position of responsibility and be
of real service to his fellow men. Being associ­
ated with a bank provides certain prestige. The
public holds in high regard those who are chosen
to fill banking positions. The public knows that
these people are chosen because of character and
ability. Also, a banking position provides more
than average security and stability. A bank se­
lects its personnel with the purpose of giving
them adequate training and keeping them for a
long time.
“ Money and buildings and equipment are es­
sential parts of a bank, but in reality people make
Northwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis

(D xa /i M sm boM J . (B osd tih A :
Vice President, F irst National Bank in St. Louis

Your recent analysis of bank credit policies is
a most interesting one, Mr. Boettler, and the
N orthwestern B anker quite agrees with you
that bankers should not be blamed for increased
money in circulation which has been caused by
deficit financing and which in turn has created
higher prices.
This policy, as you well point out, is one which
was adopted by the government and was a plan
over which bankers as such had very little to do.
Certainly, therefore, banks should not be
blamed for inflationary prices because of a 250
billion dollar national debt.
As you put it, “ Bank credit policy has been
under fire from various quarters for the past few
months. The strenuous criticism has given the
widespread impression that the banker is re­
sponsible for the inflationary problem now facing
the country. This attack on bank credit policy
has been based upon the fact that the volume of
money in circulation plus bank deposits has
tripled in the last 10 years. It has increased from
about 60 billion dollars in 1939 to almost 180
billion dollars on June 30, 1948. At the same time,
it is pointed out that in the same period the
physical quantity of goods available for purchase
in the United States, excluding shipments abroad
for relief and military requirements, has increased
only 75 per cent. There is no doubt that the far
greater increase in the money supply than in the
supply of goods is the basic cause of high prices.
Responsibility for this situation cannot, however,
be placed upon the commercial bankers.

“ We bankers should do what we can to protect
ourselves against the unfair criticism that com­
mercial bank policy is responsible for high prices.
The problem facing bankers today is to see
that they educate the public to these facts so that
the criticism will be placed where it belongs and
that place is certainly not on the banks.

The finest asset in any bank statement is “ good
will” even though it may not show as a separate
item, it is interwoven with every financial trans­
action which you make.

a)eaJL J lm p L

m . C a iL :

Secretary, Florida Bankers Association

(DsjoUe (RobsU tL J ln d q u i& L :
President, Financial Public Relations Association

First of all, may we congratulate you on the
fine work which you and your association has
done during the past year in creating better
“ public relations” on the part of the banks
towards the public.
There certainly is no more vital need than to
continue to create good will between bank cus­
tomers and bank officers.
As you have very ably presented it, “ Banks
currently stand high in public favor and esteem,
but we must not let ourselves be tempted to relax
our public relations efforts in any way. Public
opinion is fickle and can change quickly, particu­
larly toward banking which depends so much for
its well being on general business conditions.
. “ We are all aware of actions and proposals of
the federal government which step by step are
taking from banks more and more of their man­
agement functions and responsibilities. We are
also conscious of the attitude toward banking on
the part of new political bodies and organized
groups. It all adds up to the fact that long-range
political and economic trends are moving banks
inexorably toward government domination and
ultimate ownership—unless banks everywhere, on
Main Street and Wall Street, realize the vital
importance of thinking of their responsibilities
in terms of people as well as in terms of dollars.
“ And the important part of public relations is
not so much what is done, but the spirit in which
it is done— of seeing beyond the dollar sign and
thinking of our job as one of serving and pleasing
Yes, indeed, public opinion is “ fickle,” as we
found out in the last election, and for that reason
it behooves bankers everywhere to continue to
have their contacts with the public pleasing and
This does not mean that every loan that is re­
quested should be granted, in fact many of them
should not be granted, but it is a manner in
which loans are declined and the advice and
counsel given which will determine whether the
applicant for a loan will go away feeling friendly
toward your bank or otherwise.
Federal Reserve Bank of St. Louis

There is nothing more important these days
than educating “ young America” about banking
and the “ economic facts of life.”
For that reason the N orthwestern B anker is
glad to know that the Florida Bankers Association
has undertaken a statewide program to familiar­
ize high school students with banking operations.
As we understand it, your association is making
material available for teachers to use in their
classes, using a set of 5 posters and charts which
will be supplied every county superintendent and
bank in the state.
This is certainly a most commendable program
and it is greatly needed in these days when the
free enterprise system is being criticized from
without and being undermined from within.
Let’s hope that more bankers associations fol­
low the fine example which you and your associa­
tion are setting for them.
Cd&WL (H a A A if <£,. J h u m a v L :
The Elephant Tamer

You certainly Galluped back into the White
House, but we understand that Gallup is now
Anyway there were over 24,454,517 of us who
hoped that the elephant symbol might again fly
over the Capitol at Washington, but your 24,047,205 ballots won enough electoral votes to tame
the elephant.
The N o r t h w e s t e r n B a n k e r will continue to
express its opinion on current affairs from time
to time, but sincerely hopes that you can live up
to your promise of bringing us PEACE in our
foreign affairs. That is a tough assignment for
any president, but this is also no time to pussy­
foot with communism if we expect to have a
democracy where a free expression of political
opinion can still be made at the “ voting polls.”
In how many other countries can the citizens
choose their political leaders by ballots—not very
many— and in most cases it is bullets, not ballots,
that decide.
So you continue, Mr. President, as the standard
bearer of the greatest nation on earth, and every
one of us should do our part to help keep it so.

Northwest ern Banker, December, 1948

Ce nt ra l N a t i o n a l Ba n k



Northwestern Banker. December. 1948
Federal Reserve Bank of St. Louis


om pany


Des Moines, Iowa
Federal Reserve Bank of St. Louis

Northwest ern Banker, December, 1948


W hat

A h a u tH u s in e ss

W illHuai ness H e H e lle r
W h o ! is Hie F a rm Outlook?
W ill
Trnm un

P o licies

Promlnesit Bankers Express Their Views to
Important Survey of What's Ahead for 1949
N ORDER to ascertain what bankers
think about the business outlook for
1949 the N orthwestern B anker con­
ducted a telegraphic survey among
bank officials throughout the United
States and the general opinion of these
reports which are presented in this
article is on the optimistic side.
Here are what these bankers say in
answer to this N orthwestern B anker

President, The T o o tle-Lacey National
Bank, Saint Joseph

“ In my opinion, on account of the
demands from Europe, national pre­
paredness, the housing shortage and
continued shortage of production in
certain lines, such as automobiles, etc.,
business will continue good through

President, The Public N ational Bank and
Trust Com pany, New York

“ The past year has seen much prog­
ress, both domestic and foreign, to­
ward regaining balance between de­
mand and production. The year ahead
affords opportunity for further prog­
ress; the balance here, in all but a
few lines, may be completed.
“ Now, emphasis is placed more than
ever on clear and logical thinking.
Successful and profitable operations
are being attained by many despite
transition from seller’s to buyer’s mar­
kets, as reward for sound training
and long experience. Leadership and
management that have weathered com­
petition can surmount today’s prob­

“We stress clear thinking now be­
cause political actions by our govern­
ment here at home and by our gov­
ernment and foreign powers abroad,
are unpredictable. We face here high­
er wages, taxes, and, generally, costs
of doing business.
“ Our national wealth and natural re­
sources have been greatly depleted.
Our individual industriousness and
courage have been increased. We did
it before and we can do it again. So,
while definite changes in social and
economic trends seem indicated, this
is a nation activated by majorities and
‘majorities’ are the backbone of our
business and economic activities. 1
continue to believe that those who
work hard under conservative, flexible
planning should find ample compensa­
tion for effort.
“As the master adjusts his sails to
the varying winds, so must bankers
and their industrious clients lay their
courses according to the rules of the
game current or foreseen. Caution is
in order and risks must be appraised
with greater conservatism so that re­
gardless of veering trends, hardships
can be avoided. It is time for caution
but not for pessimism.”

President, N orthw estern N ational Bank
of Minneapolis

Farm Prices. This chart portrays the prices paid and prices received by farmers.
Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

“Estimating future trends in our
economy is even more hazardous than
guessing elections, but it is still neces­
sary to arrive at some kind of an as­
sumption for purposes of charting the
course of a business. With farm in­
come and employment at an extraordi­
nary level, we are looking forward to
another year of good business in the
northwest, although we would be
neither surprised nor disturbed if it
should run somewhat lower than the
current year. We shall observe mois­
ture conditions next spring with par­
ticular interest, since with each pass­
ing year a poor crop becomes more
probable, and if we should have a poor
crop next summer, our deposits could,
of course, be expected to decline next

fall. In general, we are laying our
plans on the expectation that business
conditions in 1949 will not differ too
materially from those of 1948.”



President, The Continental N ational Bank
of Lincoln



“ 1 will expect business in our sec­
tion of the country to continue along
in the early part of 1949 at least as it
is at the present time. We have had
good crops, excellent prices, and the
money will be spent for machinery
and improvements and will circulate
in trade channels. I believe that our
housing development has a b o u t
reached its peak and will be greatly
surprised if building continues at any­
where near the 1948 rate. I am in­
clined to believe that the Congress
will not rush into any legislative pro­
grams materially affecting the econ­
omy of the country.”

President, F irst N ational Bank in St. Louis

“ There are so many political and in­
ternational factors involved in the
business outlook that forecasting be­
yond the immediate future is little
more than guesswork. The situation
is complicated by the uncertainties
that will continue to exist until the
new administration reveals the extent
to which it intends to redeem in the
near future its promises of expanded
social welfare projects, low rent hous­
ing and agricultural assistance. Fur­
thermore, there is every reason to ex­
pect an expanded defense program.
In view of the inflation already exist­
ing, one thing is certain: that any
substantial further increase in govern­
ment expenditures will add fuel to
the fires of inflation already burning.
“Accordingly, until we are more
certain of administration plans, it is
only possible to appraise the business
outlook on the basis of existing avail­
able information. On the whole, the
odds seem to be in favor of continued
high levels of production and employ­
ment in most of the basic heavy in­
dustries. Increasingly, however, the
pipelines are being filled and adequate
supplies of soft goods are available.
As a consequence, some lessening in
labor shortages in industries devoted
to light manufacturing can be antici­
pated, although this may be soon ab­
sorbed if the administration carries
out some of its indicated ambitious
plans. In any event, it would seem
that further pressure for increased in­
dustrial wages, and their consequent
price increases, can be expected in the
Federal Reserve Bank of St. Louis

National Debt. The above chart shows the ownership o f the national debt and
that more than one-third is held by commercial banks and the Federal Reserve.

Satisfactory Profits
“The underlying economic forces are of such a nature that, apart from some
specific fields, business activity will be high enough to produce satisfactory

Envy of the World
“Let us all remember that we in the United States are living under conditions
that are the envy of the people in any other country on the globe. This should
give us confidence.”

Caution Not Pessimism
“Caution is in order and risks must be appraised with greater conservatism
so that regardless of veering trends, hardships can be avoided. It is time for
caution but not for pessimism.”

1949 To Be As Good As 1948
“ In general, we are laying our plans on the expectation that business condi­
tions in 1949 will not differ too materially from those of 1948.”

Election Results Absorbed
“The shock of the misguessed election results is rapidly being absorbed, as
reflected in the bond market since November 2nd. I feel certain that with the
large domestic and foreign load of obligations this country must service and
discharge, business momentum will continue and be sustained. Tax money
must continue to flow in, and production in large volume maintained.”

Very Favorable
“General business is good here at present. Retail sales are holding well,
bank deposits are again increasing, and money demand is up.
“Excellent crops, good prices, and a resultant optimistic buyer demand prom­
ise very favorable general business conditions in this area through at least the
early part of 1949. An average crop prospect by mid-year 1949 would quite
certainly assure some continuance of such condition.”
Northwest ern Banker, December, 194È

affected industries. Measured by dol­
lar volume, business generally should
continue good but become increasingly
spotty, with the problems of manage­
ment greatly increased as a result of
the squeeze between rising costs, high­
er taxes and lower profits. Because
of tougher operating and competitive
conditions, the percentage of business
failures can be expected to increase—
particularly for marginal ventures. In
short, while the boom cycle should
continue into 1949, its momentum in
many important lines of business can
be expected to decrease progressively,
unless government support is stepped
up to the point where results are high­
ly inflationary. It seems needless to
add that, the longer the cycle lasts
and the higher prices go as a result
of artificial stimulants, the greater will
be the severity of the inevitable ad­
justment that must sooner or later
take place.”

President, The F irst N ational Bank
of Lincoln

“At more or less frequent intervals
the American public enjoys viewing
future conditions with alarm, particu­
larly following a political change. I
see no reason for great concern as re­
gards the immediate future. This is
definitely true in the area that the
N orthwestern B anker covers inten­
“We are all aware that we have a
tremendous national debt which must
be handled carefully. On the other
hand, this should not be too difficult
of accomplishment.
“We are also aware of the fact that
the people of our area are relatively
free of debt, and have tremendous
assets both in money and in grain and
livestock, which will be marketed
through the months that follow.
“ Inflation is naturally a problem we
must face, and as available supplies
of goods meet normal demand, some
readjustment will ensue.
“Many of the conditions which bank­
ers may ‘view with alarm’ can be
cured, or certainly helped, if each
banker will give careful attention to
his own note case, and be prepared to
give sound advice and counsel to any
of his customers who may be attempt­
ing to embark on speculative ven­
“ Reasonably good business for 1949
can be anticipated, and the effects of
any readjustment softened by the at­
tention that each of us gives to our
own individual institution.
“Let us all remember that we in
the United States are living under
conditions that are the envy of the
Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

people in any other country on the
globe. This should give us confi­

President, M ississippi Valley Trust
Com pany, St. Louis

“ Industrial activity is currently at
an extremely high level. Indeed, the
output of goods is close to the maxi­
mum attainable with the existing in­
dustrial plant. At this high level the
forces of contraction and expansion
are approximately in balance, and an
appraisal of business conditions to pre­
vail in 1949 is essentially a task of
determining which of these opposing
forces will gain ascendency.
“Currently, weaknesses are appear­
ing in certain sectors of the economy.
In many lines the ‘pent-up’ demand of
the war years has been satisfied and,
consequently, buyers’ markets are ap­
pearing. Moreover, some consumers
have apparently withdrawn from the
market in anticipation of lower prices.
This hope will probably not be ful­
filled in many lines. Another factor
tending to reduce the demand for
goods is the fact that the projected
postwar expansion programs of a
great many, although not all, firms
have been completed. Moreover, the
decline in the volume of exports is
exerting a depressing influence. In
the financial sector of the economy the
psychological effect of rising interest
rates may have discouraged invest­
ment in new capital equipment. The
application of stricter credit standards
by most lenders, especially in the real
estate field, is tending to reduce the
volume of additional credit available
to business. Recent legislation per­
mitting the Federal Reserve Board to
establish higher reserve requirements
and to reinstate consumer credit con­
trols has also tended to limit the
amount of credit available to business.
While the actual effect is difficult to
assess at the present time, the pros­
pect of higher taxes and other re­
strictive legislation may restrain busi­
ness activity in the coming year.
“ On the other hand, there are cer­
tain forces which may tend to prolong
the current high level of industrial
activity and to intensify the inflation­
ary movement of prices. Since the
economic system is operating almost
at capacity, the injection of any addi­
tional purchasing power will tend to
result in even higher prices. Of
course, if a decrease occurs in any sec­
tor of the economy, the additional
purchasing power may merely offset
the decline and thus maintain the cur­
rent high level of production without
affecting prices.
Additional purchas­
ing power is likely to appear in the

form of increased governmental ap­
propriations for domestic rearmament,
military aid to foreign governments,
and economic assistance under estab­
lished programs. Appropriations for
reclamation and river basin develop­
ment projects, low-cost housing, and
other domestic programs may exert
additional pressure.
“ Merely to list the components of
the expansive as well as the contrac­
tive forces in the current economic
structure is to show how precarious is
the balance between them. Further­
more, no consideration has been given
to the time at which these factors may
influence the trend of industrial activ­
ity. It is almost impossible to judge
at the present time how urgent the
need for economic and military ex­
penditures will be nor the alacrity
with which the American government
will respond. It seems, however, rea­
sonable to assume that such expendi­
tures will not exert an appreciable
influence until at least the second
quarter of 1949.
“ It seems reasonable, therefore, to
conclude that if a downturn in busi­
ness does occur, it is not likely to be
either severe or prolonged. On the
other hand, unless the government
undertakes an intensive rearmament
program or engages in open hostili­
ties, the inflationary forces are not
likely to induce sky-rocketing prices.
“Business activity in the coming
year can, therefore, be viewed with a
cautious optimism. Bankers and busi­
ness men should be cautious since
there are readjustments which must
be made and because the business
community does not yet know the ex­
tent of the international aid program
or the domestic program. At the
same time, the underlying economic
forces are of such a nature that, apart
from some specific fields, business
activity will be high enough to pro­
duce satisfactory profits, although the
record highs of recent years may not
be exceeded.”

By A. G . SAM
President, F irst N ational Bank
Sioux C ity , Iow a

“A banner year crop harvest has .
again been realized for this area, in­
suring again a high buying power for
the coming year. However, 1949 busi­
ness prospects are confronted with
unpredictable possibilities.
Mainly these unforeseeable results,
dollar-wise, would appear favorable
while awaiting the new administration
policies crystallizing in the next com­
ing months.
“The shock of the misguessed elec­
tion results is rapidly being absorbed.
(Turn to page 61, please)


MODEL T R A IN — Several visitors to
the First National Bank of Lincoln, Ne­
braska, watch in fascination as the scale
model electric train skims around the in­
tricate maze of tracks. Youthful visitors
are given free stick candy by bank guards
at the lobby door.

/!« « • Of*#» Hunts Mats vs

K id s H a p p y a t Christm as
Free Stick Candy and Scale Model Railroad Setup
Draw Many Visitors to Bank During the Holidays

HRISTMAS is for the kids, and
the First National Bank of Lin­
coln, Nebraska, is typical of the
thousands of businesses throughout
this country that intend to keep this
happy arrangement just that way.
Youthful visitors to the First Na­
tional Bank during the holidays are
greeted with a friendly smile by the
bank guards and presented with cel­
lophane-wrapped stick candy. This
makes a big hit with the youngsters,
and perhaps more important, with the
accompanying parents who are pleased
at the attention shown to their own
“pride and joy.”
Moving on into the main part of
the lobby, a large Christmas tree car­
ries out the motif of the season and
during the 1948 holidays music will
be heard throughout the bank’s upper
and lower lobby.
Centrally located in the ground floor
lobby is a genuine Christmas scene, a
model electric train with all the trim­
mings. Several years ago this feature
was installed as part of the Yuletide
celebration at the First National, with
just a small train operating around the
Christmas tree.

Federal Reserve Bank of St. Louis

It became such a popular drawing
card, however, that it is now set up
as a separate unit, as shown in the
picture on this page. The train set-up
now includes a full grown model rail­
road on a platform in the middle of
the lobby. The layout includes sev­
e r a 1 automatic switches, warning
lights,, alarm bells, switchmen at high­
way crossings and the inevitable whis­

Scale Model Ads
Taking advantage of the tremendous
amount of interest showered on the
train display, the First National wise­
ly seized this opportunity to do a
good job of public relations and busi­
ness promotion for the bank itself.
Scale model billboards, which mention
such bank services as savings, check­
ing accounts, small loans, mortgage
loans and commercial loans, are placed
around the platform where they can
be seen easily.
The train naturally draws a great
number of youngsters, all of whom
receive their gift of candy from the
bank guards. And, as you might have

suspected, a very good share of the
interested spectators at the train dis­
play is composed of grown-ups who
are there ostensibly to show their lit­
tle boys and girls what makes the
wheels go round.

Free Candy
Word about the free candy and the
electric train whistling its way around
the First National lobby soon gets
around Lincoln when bank attendants
get the annual display in readiness.
To help along this word-of-mouth in­
formation, advertisements in the news­
paper and over the radio remind read­
ers and listeners that they are invited
again to visit the First National Bank
to see the Christmas decorations—
and don’t forget to bring the children!
Bank officers feel that the resultant
publicity could not help but create
good will.
Similar scenes will be going on all
over the country this month and
should serve to express to the Ameri­
can public the fine spirit of good will,
helpfulness and cheerful service that
American bankers stand ready to give
the year round.—The End.
Northwest ern Banker, December, 7948


I t a n liv r s


o u

K n o w

R u ssell L.
S totesb ery
President, The Marquette National Bank
o f Minneapolis
“A rugged Irishman, an enthusiastic flyer
and a capable executive”

RUGGED Irish ancestry, an en­
thusiastic enjoyment of flying
and unlimited executive ability are
highlights in the make-up of Russell
L. Stotesbery, president of the Mar­
quette National Bank of Minneapolis.
A man with 31 years of financial back­
ground, his ready acceptance of man­
agerial responsibilities and his out­
standing ability in handling impor­
tant duties have carried him to the
upper executive level in every busi­
ness enterprise with which he has
been associated.
In 1944 Mr. Stotesbery became a
stockholder in the Marquette Na­
tional Bank, and in 1945 was elected
president. A fast-growing institution,
the Marquette National has enjoyed
an increase in deposits from $6,500,000 in f940 to over $32,000,000 at the
present time. To keep pace with this
growth, Mr. Stotesbery announced
last month an increase of $300,000 in
the capital stock of the bank. Total
capital is now in excess of $1,250,000,
with $500,000 in capital, $500,000 in
surplus and the remainder in undi­
vided profits.
Russell Stotesbery was born Septem­
ber 6, 1900, in Bigstone County, Min­
nesota, the grandson of an Irish
immigrant who had settled in Bigstone County. After receiving ele­
mentary and high school education
Northwestern Banker. December, 1948
Federal Reserve Bank of St. Louis

he started in the banking business in
August, 1917, at the First National
Bank of Ortonville, Minnesota. From
1919 to 1922 he was with the Security
National Bank of Watertown, South
Dakota, then in 1922 joined the Fed­
eral Bank and Trust Company, which
is affiliated with the Federal Discount
Corporation. Eater he became vice
president of the Federal Discount
Corporation, a position he still con­
tinues to hold, and his son, Edward,
is a s s o c i a t e d

wi t h

hi m

in thi s

$6,000,000 institution.
From 1922 to 1944 Mr. Stotesbery
was a stockholder and director in
several Iowa banks—the Dyersville
National Bank, Dyersville; the Jackson State Savings Bank, Maquoketa,
and was part of the group that or­
ganized and was one of the first
directors of the Peoples Savings Bank
at Waterloo. In 1939 he and Fynn
Fuller, now vice president of the
Marquette National, purchased con­
trolling interest in the Illinois Na­
tional Bank of Quincy when the latter
hank’s assets were $4,000,000. In 1945
after joining the Marquette National
Bank they disposed of their holdings
in the Illinois National, which then
had assets of $17,000,000.
Mr. Stotesbery was elected presi­
dent of the University National Bank
of Minneapolis in 1944, continuing

in this position also at the present
time. He is also director of the Cliicago-Fake State Bank of Minneapolis
and both of these banks have identical
deposits of $5,800,000.
Well-liked and highly thought of
by officers, employes and customers
alike, Mr. Stotesbery is always co­
operative with everyone in the bank,
eager to help associates work out
their day to day problems. At the
bank’s social affairs he can always
he counted on to join in the fun along
with the rest of the employes.
Commenting on current problems
facing bankers, Mr. Stotesbery states,
“ I am somewhat optimistic as to eco­
nomic conditions in the immediate
foreseeable future. By and large, busi­
ness conditions in 1949 should con­
tinue on a high level. It is difficult to
foresee any serious depression while
the demand for consumer goods con­
tinues strong. Even though we con­
tinue to view the future with some
degree of optimism, such reasoning
must be tempered by maintaining a
watchful eye on loans, particularly of
an inventory nature, as many lines of
production have and will continue to
catch up to the point where excess
inventories can cause serious losses
to borrowers when values begin to
decline, as they surely will.”
(Turn to page 63, please)




By C L IF F O R D DE PUY, Publisher


J. NEEDHAM, general counsel

of the American Bankers Asso♦ ciation of Washington, D. C., in
a recent statement said, “ I have no
worry that the 81st Congress will pass
any legislation which will be detri­
mental to banking.”
We certainly hope that Mr. Need­
ham’s prognostication is correct.
Arthur J. Morris, president of the
Morris Plan Banks, told us at a ban­
quet the other night that their 200
banks had made 50 million loans
amounting to $15,000,000,000 since the
first Morris Plan Bank was established
at Norfolk, Virginia, in 1910, and that
their losses had been less than onefourth of 1 per cent.
W. A. Sawtell, president of the Stock
Yards National Bank of South Omaha,
published figures in his recent “bulle­
tin” which indicates why many farm­
ers and livestock raisers no doubt
voted Democratic.
Very seldom have we ever changed
Presidents at the top of a business
Here are the comparative top prices
paid for livestock recently:

Corn-Fed Beef Steers ..
Corn-Fed Cows ..............
Corn-Fed H e ife rs ...........
Feeding Steers ..............
Hogs ..............................
Average Weight of Hogs
Fat Lambs ....................
Feeder L a m b s................

Marriner S. Eccles, member of the
board of governors of the Federal
Reserve System of Washington, spoke
before the Iowa Bankers Convention.
He commenced his remarks by ex­
plaining why he continued on after
President Truman had denied him
the chairmanship.

Ed. F. Buckley, president of the
Central National Bank and Trust Com­
pany, Des Moines, was a grandfather
twice on the same day last month,
“a double feature,” when his daughterin-law, Mrs. Ed. F. Buckley, Jr., pre-

“When the chairmanship of the Fed­
eral Reserve System was denied me, 1
continued to stay because T was in­
terested in trying to work effectively
toward assisting in economic stabili­
zation. Also I wanted to conquer my

Evans Woollen, Jr., president of the
American Bankers Association, from
Indianapolis, Indiana, believes that
“we shall have international anarchy
so long as we fail to have understand­
ing among nations.

“We have a hybrid of individualism
and collectivism in our government
and will for a long time, and probably
will not have a pure economy of free
enterprise>in our lifetime.”
243 lbs.

245 lbs.

286 lbs.

253 lbs.

ED .



Exhibiting the gifts he received when he became
“ a double feature” grandfather

sented the family with twins, named
“Mike” and “Steve.”
Ed. F. Buckley, Jr., is associated
with the Collins Radio Company of
Cedar Rapids, Iowa.
P. M. Underwood, manager of the
Bank Division Department of the
Chemical Bank and Trust Company,
New York, has made a very interest­
ing comparison of insured commercial
banks in the United States.

In his analysis Mr. Underwood
pointed out that, “ Since the establish­
ment of Federal Deposit Insurance
Corporation, deposits in all insured
commercial banks h a d practically
trebled by December, 1947. While the
percentage of deposits represented by
cash had declined, the amount in­
vested in U. S. Securities had in­
creased and the over-all liquidity as
represented by cash and governments
had become considerably higher.

BIG- SHOTS. Two “ big shots” in wild game hunting in A frica were achieved
by V. O. Pigge, president o f the Davenport Bank & Trust Company, Davenport,
Pictured on the left is a big elephant which was shot just before the Republi­
can Elephant also got shot, “ but not killed,” by Harry Truman.
On the right is a two-horned rhinoceros which is no doubt the “ new 1949 Model.”
Both o f these trophies were killed by Mr. Pigge in East A frica, on a 6,000 mile
trip through the jungles and forests.
Federal Reserve Bank of St. Louis

Mrs. J. R. Kenner, wife of the presi­
dent of the Nebraska Bankers Asso­
ciation and president of the Thayer
County Bank of Hebron, is one of the
beautiful women of her state, with her
prematurely white hair and h e r
charming “school girl complexion.”

(Turn to page 66, please)
Northwest ern Banker, December, 1948



Can T rustee far A n E state
E ngage in Self-D ealing?

A Chicago, Illinois, bank acted as
trustee of an estate. It, as such trus­
tee, bought from itself, as a hank, cer­
tain bonds for investment. Losses
were sustained on the bonds by the
estate and the bank made them good
with interest. It, at all times, acted
iu good faith in the matter. In the
final settlement of the accounts of the
estate the bank sought compensation
from the estate for its services in ac­
quiring the bonds. Was it entitled to
have an allowance made on its behalf
of such compensation?

No. A trustee may not engage in
self-dealing in the performance of its
duties which results in loss to the
trust. When it does it must make
good the loss, as was done here. In
addition the trustee is not to be al­
lowed any compensation for that part
of its activities which resulted in the
loss even though it acts in good faith
and makes good the loss with interest.


. McCarthy, a banker, made appli­
cation for a policy of life insurance
and was given a medical examination,
the results of which showed that he
was in good health. Shortly there­
after, he was stricken with a severe
case of pneumonia from which he ulti­
mately died. While he was ill, the
insurance company delivered the policy to his home. It had no knowledge
of his condition at that time. Did the
insurance policy, in such circum­
stances, become valid and binding un­
der the general rules of law applicable

No. It is well settled in most juris­
dictions that the delivery of a policy
of insurance to an insured while he
is in good health is a condition prece­
dent to the policy coming into being
as a valid contract. If the insured
is not in good health when the policy
of insurance is delivered, no recovery
can be had under it. This is true
even though the insured in good faith
believes that he is in sound health
at the time the policy is delivered.

Q . A major oil company owned a
iilling station on one corner of a busy
Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

This and Other Timely Legal
Questions Are Answered
fay the
of the
street intersection in Chicago, Illinois.
It bought a lot on the opposite cor­
ner intending to erect another sta­
tion there. Subsequently it decided
not to do so and sold the lot to a
fraternal organization that wanted to
erect a club house thereon. As part
of the deal, which was acceptable to
all concerned, a restrictive covenant
was placed in the deed to the effect
that no filling station could be oper­
ated on the property, and that, if such
was attempted, the title to the lot
would revert to the oil company. The
fraternal organization’s p l a n fell
through; it fell upon hard times and
sought to have the restriction an­
nulled. Could it do so?

No, according to a recent U. S. Cir­
cuit Court of Appeals, Seventh Cir­
cuit, decision involving an analogous
situation. The restrictive covenant
was inserted by the oil company for
the protection of its nearby station
and to keep the business at that loca­
tion from being diluted. This action
on its part was reasonable, normal
and proper. The covenant was not
ultra vires or in violation of public
policy on such matters.
Brown, a North Dakota banker,
also operated a jobbing business
there. He hired Green as a salesman
for such business and turned over an
automobile to him for use as though
it were bis own. One evening Green
and White, an acquaintance, went for
a drive to get some cool air. Green
grew tired and had White help him
out by driving. White became in­
volved in an accident. Brown’s lia­
bility insurance provided that the car
would be used for business and pleas­
ure and that it covered, in addition to
Brown, any person incurring liabil­
ity while using the car, provided such
use was with Brown’s permission.
Did Brown’s insurance cover White?

Yes, according to a recent North
Dakota Supreme Court decision in­
volving similar facts. Green did not
abandon the car or its use when he
surrendered to White the guidance of
the wheel. He was still the director
of the enterprise, still the custodian
of the instrumentality confided to his
keeping, and still the “master of the
ship.” Green had Brown’s full per­
mission to use the car for both busi­
ness and pleasure as though it were
his own. The circumstances in which
Green had White drive for him were
such that White was legally respon­
sible for its use and Brown’s permit
to Green to use the car was so broad
that it extended to White’s operation
of the vehicle on Green’s behalf.


.Dervin, a banker’s son, obtained
a $10,000 life insurance policy in 1942
while in the U. S. Army. The policy
was issued by one of the big insur­
ance companies and bis father was
named beneficiary. It provided that
a restricted amount, roughly pre­
mium payments plus interest, would
be paid in lieu of the face amount if
death occurred outside of the United
States while the insured was in the
military forces of any country “en­
gaged in war.” Dervin, while still in
the Army, accidentally fell from a
hotel window in France on October
3, 1945, and was killed. Was his father
entitled to $10,000 under the policy?

Yes. Unless it is obvious that terms
in an insurance contract are intended
to be used in technical connotation,
they will be given the meaning that
common speech imports. The words
“engaged in war” in common speech
mean actual warfare, terminated by
the capitulation of the enemy forces.
Since the United States was not en­
gaged in war as contemplated by the
wording of the policy under the
proper interpretation to be given
such wording, the beneficiary can
recover its face amount.


.A confidence man swindled a
widow in Texas out of $250,000 by
representing that the funds were

(Turn to page 68, please)

*We Ofâex
W e now R eco rd a k a ll item s d ra w n on points outside o f
O m aha.

O fte n tim e s a d e p o sito r w a n ts a d escrip tio n of a p a rtic u la r
item a fte r it h as been d e p o site d . R eco rd a k su p p lies this
in fo rm atio n w ith o u t d e la y .

In case of loss of an item w h ich has been R e co rd a k -e d ,
w e can su p p ly a p h o to static co py im m e d ia te ly . U s u a lly
w e can co llect on this p h o to stat w ith o u t the necessity of
securing a d u p lic a te ch eck.

R eco rd ak o ffe rs im m e d ia te p ro o f in ca se o f a fo rg e ry w hen
the item has been p a id a n d d e stro y e d .

The Omaha
National Bank
Member Fed eral D eposit Insu ran ce Corporation




Federal Reserve Bank of St. Louis

Northwest ern Banker. December, 1948

C on feren ce in Si. Lonis


For Controlling
Priced under the book
EARNINGS $22,500

T his

is an old established
bank and the only bank in a
town of approximately 1,000
population in a good agricul­
tural community.
T h e banking house, which cost
over $25,000, is carried on the
books at $1.00. The bond ac­
count shows an appreciation.
It is not located in Iowa. Fur­
ther information will be given
only to bona fide prospective
purchasers and only after they
have executed our Bank Pur­
chaser's application.
T h is bank, now available, is
but one of the many fine oppor­
tunities available through our
service, from a minority interest
in a profitable country bank re­
quiring an investment of $18,000
to the controlling stock of a
large bank requiring an invest­
ment of $300,000.
WRITE today for our Bank Pur­
chaser's Application.

IN ST. LOUIS— The 1948 annual conference o f bank correspondents o f the First
National Bank in St. Louis was held at Hotel Jefferson, in St. Louis, last month.
Pictured above are a number o f the 450 officers and representatives of correspond­
ent banks from 15 states who were registered for the one day conference. The
attendance was larger than last year.
In the morning open house was held at the First National Bank. William A.
McDonnell, president o f the First National Bank, presided at the luncheon
Walter W. Smith, chairman o f the First National Bank, presided at the evening
session. The guest o f honor and speaker was Beardsley Ruml, chairman o f the
board o f R. H. M acy & Co., Inc., New York City, and a former chairman o f the
Federal Reserve Bank o f New York. Mr. Ruml’s subject was: “ Current Prob­
lems o f Fiscal P olicy.” A number o f St. Louis business and professional leaders
were also guests o f the First National Bank at the evening session.

Capital Stock increase
Tn a recent letter’ to stockholders,
directors of California Bank, Los An­
geles, asked consent to amend the arti­
cles of incorporation to increase the
authorized capital stock from the pres­
ent 260,000 to 400,000 shares.
It is the present intention of the
board to give consideration to an ini­
tial offering to stockholders of rights
to subscribe to 40,000 shares. “ How­
ever,” the letter continues, “in view of
the time that must necessarily elapse
before the amendment will become ef­
fective, plans for the offering must be
indefinite because of possible changes
in market and other conditions.”
If the amendment is adopted by
stockholders, the letter points out, the
additional shares will be available to
be issued from time to time without
delay incident to further amendment
of the articles.

Assistant Secretary

R a n k in 's S e r v i c e C u .
HENRY H. BYERS, President
HARRY B. GIPSON, Vice President

Box 1435
Tel. 2-7800
Des Moines 5, Iowa
(Offices in the Register & Tribune Bldg.)

Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

Manufacturers Trust Company, New
York, announces that Brian T. Moran,
Jr., has been appointed an assistant
A native of Philadelphia, Mr. Moran
began his banking career in 1925 with
the Pacific Bank in New York City.
He has been with Manufacturers
Trust Company since 1941, during

which time he has been associated
with the bank’s comptrollers depart­
ment, specializing in tax work.

1949 Convention
Chairman of the committees for the
47th annual convention of the Ameri­
can Institute of Banking, to be held
in Portland, Oregon, May 30 through
June 3, 1949, have been announced by
Pierre N. Hauser, national president
of the institute and vice president of
The First Wisconsin National Bank,
Milwaukee, Wisconsin. The A.I.B. is
the educational section of the Ameri­
can Bankers Association.
All of the committee chairmen are
associated with Portland banks.

1949 Yearbook
Under the direction of Bon U. Grussing, advertising and sales promotion
manager, the Minneapolis-Moline Pow­
er Implement Company of Minneap­
olis, has produced and is distributing
among its dealers a calendar which
probably has the world’s largest cir­
It is actually a combination of cal­
endar and catalog of the company’s
many farm equipment products. Some
2,000,000 of these calendars will even­
tually reach farmers in every state in
the union, and past information re-

year to remember

A t the beginning of the year now drawing to its close the
bankers of America, through the American Bankers Association,
went to the government with a program of voluntary
control designed to channel credit into productive and
non-inflationary uses.
They provided industry with a program, actually put
into action, to combat inflation. This was a memorable step
in government-industry relations. It symbolized the constructive
role__earned over the years — which bankers play today
in safeguarding the national economy . . . and in the affairs
and welfare of their respective communities.
Federal Reserve Bank of St. Louis

Northwest ern Banker, December, 1948

veals that at least 90 per cent of these
calendars will be on display once they
reach the farmers’ homes.
This year’s edition fosters school
safety, and the ten youngsters who
appear in the cover painting reproduc­
tion are all Twin Cities boj^s and girls
who posed for the picture. The three
sons of Mr. Grussing, Bruce, Ted and
Ron, Jr., are all portrayed.

Talks to Bankers
The Bankers Club of Chicago held
its annual dinner meeting last month,
with the address given by Paul S.
Russell, president of the Harris Trust
and Savings Bank, Chicago, who re-

cently returned from Europe and
North Africa. Mark A. Brown, execu­
tive vice president of the Harris Trust
and president of the Bankers Club,
presided at the meeting.

The First National Bank in St. Louis
has announced the promotion of
Wyllys K. Bliss from assistant vice
) resident to vice president. Mr. Bliss
is a loan officer of the bank, special­
izing in insurance loans, and also has
general supervision of the bank’s sav­
ings department.
Mr. Bliss has been an assistant vice
president since February 16, 1945.

Joins Charles E. Walters
Charles E. Walters Company, bank
sales organization of Omaha, Nebras­
ka, announces the addition to the per-

s * * * »




May we quote that,
Mr. Author?
...thank you!

“Cashing a Check



. Postwar

Trai«* ***

e s , Mr. Fielding is right. W e thank
him —and so w ill travelers every­
where. Your bank’s customers can
turn American Express Travelers
Cheques into cash anywhere in to­
day’s travel w orld . . .


W hat does this mean to you?
It means that when you sell Amer­
ican Express Travelers Cheques you
keep your customers confident that

UseAmerican Express
Travelers checks only
. . . American Express
checks are known to
all the little people;
there’s seldom the
slightest question of
their validity.”

you are providing the best possible
service . . . the kind o f service that
brings customers back to your bank
again and again.



For effective point-of-sale prom o­
tion material, write W . H. Stetser,
Vice President, American Express
Company, 65 Broadway, N ew York
6, N. Y.

Protect Your Customers —Sell

A merican Express
T ra ve lers C h equ es
Most Readily A c c e p t e d —Most Widely Known

Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

H eads Placem ent Departm ent

sonnel of their company of Leo Goethe,
who comes from St. Paul, Minnesota,
where for 23 years he was associated
with General Foods Corporation as
district representative. He is a vet­
eran of World War II, having served
in the Marine Corps for more than
three years. With his family he is
now established at 4811 Underwood
Avenue in Omaha. Leo brings to this
company a wealth of experience in
salesmanship. He is presently as­
signed to duties of the placement de­
partment, handling bank personnel
and other office activities, and looks
forward with anticipation to the pleas­
ure of meeting and serving friends
and clients of Walters System.

To School Council
Fred G. Harrison, vice president,
Champaign County Bank & Trust Com­
pany, Urbana, Illinois, has been ap­
pointed to a three-year term on the
advisory council of the School of
Banking at the University of Wiscon­
sin, sponsored by the Central States
Conference of bankers’ associations.
This appointment has been announced
by Harry C. Hausman, chairman of
the board of trustees of the school
and secretary of the Illinois Bankers
Mr. Harrison, whose term on the
advisory council will expire in 1951,
was graduated from the school with
the class of 1948.



W hen the United States went to war in

fo r credit, versatile Chase service has helped

1941, the Chase National Bank had on its

to push the raw textile fibers over the lo n g

books textile loans running to many

road w hich ends in a new suit, skirt,

millions o f dollars. In the following

o r handkerchief for you.

years these loans were paid down to


about a fifth of their former total
as the industry went to work to meet
both Government and civilian needs.

N o w Chase textile loans have again risen
sharply as plants have been expanded
and w ar-w orn and ob solete machinery
replaced during a period o f higher costs.
In meeting the fluctuating demand

crrn & erreYew
Y/feYr dew Y ce Y& cudY&mevd
/ y feâ t'n y (YY}YYa4ejYs/sfYrYYed
Federal Reserve Bank of St. Louis



Member Federal D eposit Insurance Corporation

Northwest ern Banker, December, 1948


Jackson Heads
Mid-Continent Division
Ralph T. Reed, president of the
American Express Field Warehousing
Corporation, announces the formation
of its Mid-Continent Division, with its

Expands Supervision

T S prompt, efficient collection of

Wisconsin checks and drafts

important to you? Do you ever need first-hand
facts about sources of supply in Wisconsin? . . .
credit information? . . . market data? . . . who's
Whatever your requirements — routine hank­
ing service, special information, or off-the-beatenpath assistance — the chances are that the facil­
ities, long experiences and statewide contacts of
the first Wisconsin National Bank of Milwaukee
can supply the answer.
This bank is the largest in the state . . . 29th in
size among all banks in America . . . and over

central office located at 120 South La­
Salle Street, Chicago.
T. Stanley Jackson, vice president,
has been placed in charge of the new
division and will direct the activities
of the Chicago, Detroit and Minneap­
olis offices, serving the midwestern,
midsouthern and northwestern states.
Mr. Jackson, who heads the new midContinent Division, is widely known,
not only to field warehousing people
throughout the United States, but is
likewise a familiar figure in the bank­
ing field, since he has attended bank­
ers’ conventions throughout the mid­
west for a great many years. At one
time he traveled this area for one of
the large Canadian banks and built
up a tremendous acquaintance in the
banking field.
During the past several months he
has been in charge of the Minneapolis
office of the American Express Field
Warehousing Corporation.

92 per cent of the hundreds of banks throughout
Wisconsin are First Wisconsin correspondents.

— M em ber o f ..... —
the F e d e ra l D eposit
In su ra n ce C o rp o ra tio n


Northwest ern Banker. December, 1948
Federal Reserve Bank of St. Louis


Re-elect Directors
Walter J. Cummings and William
C. Heath have been re-elected direc­
tors of the Federal Reserve Bank of
Chicago for a term of three years,
commencing January 1, 1949, and ex­
piring December 31, 1951.
Mr. Cummings is chairman of the
board of the Continental Illinois National Bank and Trust Company of
Chicago and Mr. Heath is president of
the A. O. Smith Corporation, Milwau-

kee, Wisconsin. Both gentlemen were

Dates Announced
The dates for the 75th Annual con­
vention of the American Bankers
Association have been announced by
Merle E. Selecman, secretary of the
association. The convention will be
held in San Francisco October 30 to
November 2, 1949. The invitation to
San Francisco was extended to the
A.B.A. on behalf of the San Francisco
Clearing House Association by its
president, Carl F. Wente, senior vice
president of the Bank of America
N.T. & S.A. The last time the asso­
ciation met in San Francisco was in
In making this announcement, Mr.
Selecman said that convention city
committees of San Francisco bankers
will be named early in 1949. He stated
that hotel application forms will be
sent to the A.B.A. membership about
March or April of next year. No appli­
cations will be accepted by the hotels
directly, he explained. All will be
handled by the local hotel committee
after it is organized. Official hotel
reservation forms will be mailed to
the membership in ample time. The
selection of headquarters hotels will
also be announced at a later date.

A regular dividend on the common
stock of the Bank of America has
been declared by the board of directors
of the bank for the current semi-an­
nual period. The dividend of $1.25
per share for the six months, at the
regular annual rate of $2.50 per share,
is payable on December 31, 1948, to
shareholders of record at the close
of business November 30.

Burroughs Sales Increase
Consolidated operations during the
first nine months of 1948 of Burroughs
Adding Machine Company resulted in
net income of $9,997,515, or 12.9 per
cent of sales, as compared with $4,403,050, or 10.47 per cent of sales for the
same period of 1947, John S. Coleman,
president of the company, announced
During the first nine months of this
year, gross i n c o m e from sales
amounted to $77,580,000, as compared
with $42,037,853 for the first nine
months of 1947.
As a result of improved manufac­
turing methods and increased person­
nel, unit production during the first
nine months of 1948 was 53 per cent
higher than during the same months
of 1947.
Not only were costs of doing busi­
ness in 1948 considerably higher than
for the same period in 1947, due to
Federal Reserve Bank of St. Louis

The Invisible Thumbprint Endorsement Plan is the
means by which forged, N.S.F. and "no-account” check
losses can be minimized.
bankers, Chambers of

Recognized and accepted by

law enforcement

agencies and businessmen, The Invisible Thumbprint
Endorsement Plan can serve you and your depositors.
Detailed information is available on request at no




N o force in the world is so strong as that o f an idea whose time has com e . — V ictor H ugo

Northwestern Banker, December. 1948

increased wages and prices of mate­
rials, but also larger amounts of
money were needed to conduct the in­
creased volume of business and pro­
tect basic investments during this in­
flationary period than ever before.
Average straight time factory wages
per hour during the month of Septem­
ber, 1948, for Burroughs Detroit,
Schaefer, and Plymouth Plant em­
ployes were 9.8 per cent higher than
during the same month of 1947, and
the total number of dollars paid Bur­
roughs employes in these three plants
for the first three quarters of this
year were $44,782,046, as compared
with $30,151,000 for the similar period
in 1947.
The only payments which did not
increase for the first nine months of
1948, as compared with 1947, were
dividends to stockholders which for
the period were 45 cents a share in
both years.

Currency Display
The City National Bank and Trust
Company of Kansas City, Missouri,
has prepared a display of currency
which shows the ruinous growth of
inflation which came to Greece and
Germany. The currency’s descriptive
text is fastened to four panels and

may be exhibited in a variety of ways.
Banks wishing to show this display
for a short time in lobbies, windows
or fair booths may, without charge,
get this display by writing City Na­
tional Bank.

Financial Men Elect
New Officers
Allen Crawford, vice president of
the Bankers-Equitable Trust Company
of Detroit, was elected president of
the Financial Public Relations Asso­
ciation at its 33rd annual convention
in Florida. Mr. Crawford succeeds
Robert Lindquist, vice president of
La Salle National Bank, Chicago.
The association, which has 1,342
members in banks and financial in­
stitutions throughout t h e United
States, elected three vice presidents,
who are in line for advancement to
the presidency in successive years.
They are:
First vice president, John N. Carver,
vice president, Manufacturers & Trad­
ers Trust Company, Buffalo, New
Second vice president, Philip I£.
Barker, vice president, Granite Trust
Company, Quincy, Massachusetts.
Third vice president, Hugh J. Ber­
nard, vice president, Second National
Bank, Houston, Texas.

Harve H. Page, second vice presi­
dent of Northern Trust Company, Chi­
cago, was elected treasurer of the
FPRA to succeed . Chester L. Price,
advertising manager of City National
Bank & Trust Company, Chicago. The
office of executive vice president is
held by Preston E. Reed of Chicago.
Eight members were elected to the
FPRA board of directors. They are:
For three-year terms: Willis B. Con­
ner, Jr., assistant vice president, Mer­
chants National Bank, Indianapolis;
J. J. Lawlor, advertising department,
National City Bank, New York; Jerrolcl
Owen, director public relations, Cen­
tral Bank, Oakland, California; B. H.
Tuttle, director public relations, First
National Bank, Memphis, Tennessee;
W. Leroy Ward, ,Jr., executive vice
president, Fidelity National Bank,
Baton Rouge, Louisiana, and Frank
R. Warden, vice president, Central
National Bank & Trust Company, Des
Moines, Iowa.
For an unexpired two-year term:
John R. Christie, vice president,
Buchanan & Company, Inc., Los An­
geles, who succeeds himself.
For an unexpired one-year term:
Miss Virginia O. Valentine, advertising
manager, State-Planters Bank & Trust
Company, Richmond, Virginia, to fill
the vacancy created by the election of
Hugh Bernard as vice president.

Warehouse Receipts Loans offer a practical solution of the financing
problems of those concerns among your customers whose value has
outgrown their working capital.
Dormant assets represented in their inventories of agricultural pro­
ducts, raw materials 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.

St. Paul Terminal Warehouse Co.

Des Moines Office
515 Iowa-Des Moines
National Bank Building
District Manager

— Other Offices —



Northwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis






Om aha Office








1105 First National
Bank Building
District Manager



D ivergen t M a r k e t Den étions
Follow E lection D esalts
Common Stocks Confirm Bear Market; High Grade Bonds,
Governments and Municipals Show Strength
Investment Analyst
New York City
NOUGH time has elapsed now for
the security markets to indicate
their several reactions to the No­
vember elections. They have been
divergent, of course. Common stocks,
according to one widely-followed the­
ory, “confirmed” a bear market shortly
after it became clear that the Demo­
cratic party would continue to direct
the affairs of the country for at least
two years more.
The high-grade bond market, on the
other hand, rose, led by government
bonds, including issues eligible for
purchase by commercial banks and
the non-eligibles. The municipal bond
market gave an even more impressive
exhibition of strength, aided, doubt­
less, by the prospect of even greater
“value” attaching to exemption in the
face of almost certain higher taxes.
The common stock market has been
influenced by the dual prospect of an
administration in power which will
continue to be, at best, unfriendly to
private enterprise and the possibility
that the general industrial boom may
be leveling off. The latter factor has
contributed to higher bond prices on
the general theory that industry will
tend to reconsider and, probably, re­
vise pending plans for capital expan­
A leveling off in the current rate of
industrial production could hardly
come as a surprise. For almost three
years, business has been booming in
response to heavy and sustained out­
lays on new plant and equipment by
business, in mounting residential con­
struction and by consumer purchasing
of durable goods. The sum of new
capital funds required by these forces
was far greater than the total of cur­
rent savings in the period. Conse­
quently, there was a steady pressure
on bond prices.


Bear Market
The bear market in common stocks
that is now. belatedly, “confirmed” is
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
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.

These efforts, it may be presumed,
will be continued within the frame­
work of a balanced budget. If so,
taxes must be raised even higher.
Against that, though, the outlook
would also include continued extreme­
ly high production levels and virtual­
ly full employment at inflated wages.
This should lift national income high
enough to sustain the expected heav­
ier taxes. Given no national calami­
ties and no shooting war, why might
not the stock market jog along in
the same old rut almost indefinitely?

supposed to have started in June,
1948. But even the most sincere fol­
lowers of The Dow Theory do not
profess that the theory will tell them
how far, or for how long, the 1948
bear market in stocks will run. It is
well outside the province of this col­
umn, of course, to undertake to supply the answers to those questions.
Nonetheless, the course of the com­
mon stock market does have an effect
on the bond market. It may be worth
reporting, then, that the current
“bear” market in stocks likely would
be reversed promptly should the great
body of common stock investors con­
clude that a great deal more inflation
is in store, or that was on a grand
scale is probable within a year or so.
Presumably, a “hot,”' or shooting
war is fairly remote. But there is lit­
tle to suggest that the continuing
“cold” war will end soon. Strained
relations with Russia could persist for
many years and yet not erupt into
full-scale war. This view, or some­
thing like it, appears to have the most
supporters. Its implications, so far
as the common stock market goes,
are neither good nor bad, but neutral,
rather. It would mean a continued
draining off of this country’s re­
sources in an effort to bolster the re­
sistance and to, ultimately, restore
the economic stability of the countries
of western Europe.

In fact, it may be observed, the
conditions just outlined as a possible
future pattern have prevailed for sev­
eral years. For at least two years,
relations with Russia h a v e been
strained, domestic production, employ­
ment and income have all been ex­
tremely high and taxes have been
high and productive of fantastic in­
come for the government. As a side­
light on what the stock market may
think about a continuation of such
conditions, there is the record. Wheth­
er considered a “bull” or a “bear” mar­
ket, the range of industrial stocks as
measured by the Dow-Jones average,
has been 163-193 for the past two
years. The rails have swung within
a 41-65 range in the same period.
Assuming an unchanged background,
why should not the market adhere
to that drab pattern? If the assump­
tion is allowed, the conclusion is that
the course of common stock prices
over near-by years should not have
any pronounced effect on bond prices.
There are other reasons for looking
forward to a rather colorless bond
market for some time ahead.
It may be true that business will
defer some of its unfinished busi­
ness, but it is hardly likely that all
projected outlays for new plant and
equipment will be junked just because
the Republicans were not successful
in 1948. There is, in fact, at this

Continuing Pattern

Northwest ern Banker. December, 1948



writing an impressive volume of fi­
nancing registered with SEC, or on
the way to early registration. A great
deal has been accomplished in the
way of new plant and equipment since
early 1946, but the entire demand
has not been satisfied. The utilities,
notably, are evidently in need of great
sums of money in order to sustain
the vigorous growth required to sat­
isfy the demands made upon it by
industry and individuals.

Utilities Position Excellent
Since the statistical position of the
utility industry generally is excellent,
it can raise new capital, or refund old
debt, on fairly economical terms. Cer­

tainly, the industry, in view of its
extraordinary vitality and the upward
trend of rates, can borrow at rates
well within its capacity to pay. Why,
then, should utility managers not go
ahead with their plans? If they do,
there should be a supply of new of­
ferings fully sufficient to satisfy in­
vestment demands and a reversal of
the buyers’ market in existence right
up until the elections cannot be ex­
pected to persist for any great length
of time.
Government bonds shared in the
post-election strength and the pegged
issues rose modestly above support
levels. The thought has been aired


Members Chicago Stock Exchange
Underwriters and Distributors of Investment Securities
200 Equitable Building
Phone 4-7158
Teletype DM 184

135 South LaSalle Street
Phone Andover 6700
Teletype CG 245




that the entire bond market may
have turned the corner. There is, it
is admitted by those who hope for a
reversal of trend, no statistical evi­
dence to support that view as yet. It
is urged, in rebuttal, of course, that
while it cannot be proved that the
corner has been turned, it cannot be
disproved on the basis of evidence in
hand. An argument that rests on
double negatives, though, is not too
The upward move by governments
since the election has shoved the ques­
tion of “to peg, or not to peg” into
the academic category for the mo­
ment. But, over near-by weeks, sea­
sonal factors tend to restrict credit
and to lower bank reserves. Even
more important, the Treasury’s work­
ing balance is running low. If deficit
financing it to remain with us, the
pressure on government bond prices
will soon be evident again.
Since the administration which ini­
tiated “pegs” will remain in control
of fiscal matters, it is entirely likely
that the pegs will be continued, de­
spite all that has been said against
them. Deficit financing and the di­
version of longer term governments
into the portfolios of the Federal Re­
serve Banks are anathema to the clas­
sicists, but they were not re-elected
to office in November.

Individuals, Institutions, Trust Accounts and Estates

Fresh Controversy?


The controversy may rage afresh
within a month or so, but nothing
new will be said for or against the
policy of low-cost borrowing by the
Treasury. Nor will the problem of
continuing to peg prices in the inter­
ests of an “orderly” market be beyond
the capacity of the Washington money
managers. They have the power and,
clearly enough, they have the deter­
With the probability of indefinite
maintenance of government b o n d
prices enhanced by the outcome of
the elections, it is clear that a fair
number of investors bought govern­
ments on the theory that losses would
be small, at worst, and profits might
be worth while. Those sufficiently
nimble have, or may yet take, a quick
profit on the operation. But the suc­
cess or failure of a trading operation
over a period of a few weeks is no
guide for longer term investment un­
The evidence, so far as it can be
appraised to date, suggests that the
bond market has not “turned the cor­
ner.” Governments, it appears, will
be held firmly in hand, but the re­
mainder of the market has no such
reassuring prop under it. Even in the
case of governments, there is always
the outside chance that the pegs will
be lowered, although the devotion to


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


Ask for our booklet, “ M on ey Management”

Des Moines Office
405 Bankers Trust Building

Prospectus on request f rotti Principal Underwriter




Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis


a 2V2 per cent rate on long-terms ap­
pears to be as torrid as ever.
Moderately lower pegs, of course,
would mean modest write-downs by
holders of governments. The pros­
pect is not pleasing. The only answer
is to continue cautious. Caution has
paid handsome dividends over the
past two years and it is hard to see
any good reason to throw it overboard
at this stage.

Swiss Bankers' Experience
For what it is worth, the recent
experience of Swiss bankers may be
reported. In general, the Swiss franc
is regarded as one of the world’s
hardest of hard currencies. The Swiss
went through two wars unscathed.
Nonetheless, when that country’s fis­
cal authorities insisted on floating a
300,000,000-franc, 10 - year conversion
loan at 314 per cent interest, the re­
sult was a resounding failure a few
weeks ago. The commercial banks,
paid a 1 per cent commission, took up
about 50,000,000 francs of the loan and
saw it drop sharply in price as soon
as the subscription books closed. The
recognized view now is that 4% per
cent interest net will be the standard
minimum rate on long-term loans in
In Switzerland, as in the U. S.,
taxation is heavy and the cost of
living is high. In that country, as a

result, workers feel that there is less
incentive for saving and, since the
old-age insurance system started on
January 1, 1948, wages are taxed an­
other 2 per cent. This, of course, cuts
into what the worker might have
saved and, at the same time, he con­
cludes that the old-age insurance will
take care of him regardless. There
is a degree of similarity between the
U. S. and Switzerland.
This column considers that the bond
market has not turned the corner, but
a contrary view has at least arguable
support. To those who conclude that
the general situation has changed
sufficiently to justify optimism on
bond prices, though, this thought is
submitted. Ordinarily, the bond mar­
ket turns, when it does turn, in an
extremely leisurely fashion. In the
past, a fundamental change in the
trend of bond prices has taken place
over a matter of three months and
more. Thus, the investment portfolio
manager who plans to take a more
aggressive position may still take time
to pick and choose, to await soft spots,
before actually putting his plans into

Final Election Thought
A final thought on the election re­
sults is that the position of tax-ex­
empts has been strengthened. There
is every reason to expect that exemp-


W e o ffe r
f o r sale
the notes of
Automobile Banking Corporation

Colonial Finance Company
Lima, Ohio

Commercial Securities Company
Baton Rouge, La.

Consolidated Finance Corp.
Indianapolis, Ind.

Contact Purchase Corporation

Interstate Finance Corporation
Dubuque, Iowa

Interstate Securities Company
Kansas City, Mo.

Liberty Loan Corporation

TW O B L A D E S G R EW . . .

Mercantile Acceptance
Ran Francisco

Mercantile Discount Corporation

T o make two blades o f grass grow
where but one grew before creates a
plus factor in agriculture. To sell a
two-dollar product in place o f a onedollar product creates a plus factor in
W e have accomplished something
along this line in the case o f Person­
alized Checks because, instead o f sell­
ing two hundred conventional pocket
checks for perhaps forty cents, we get
one dollar and thirty-five cents by
enhancing their value with imprinting
and numbering.
W e would much rather make six per
cent (after taxes, that is) on a one
Federal Reserve Bank of St. Louis

dollar and thirty-five cent sale than six
per cent on a forty-cent sale. Bankers
would much rather invest one dollar
and thirty-five cents — and get it back
— than spend forty cents and not get
it back. The public would much rather
buy Personalized Checks for one dollar
and thirty-five cents than get forty
cents worth o f ordinary checks for
So here we have a situation where
apparently everyone benefits thru the
introduction o f this plus factor.
Perhaps that is why banks from coast
to coast are enthusiastically selling
DeLuxe Personalized Checks.

Manufacturers & Jobbers
Finance Corp.
Shelby, N. C.

Mossier Acceptance Company
New Orleans

National Discount Corporation
South Bend

North American Acceptance

Northern Illinois Corporation
De Kalb, III.

O ’ Dea Finance Company
Des Moines

Securities Acceptance

Southwestern Investment
Amarillo, Tex.

Winter & Hirsch, Incorporated


Commercial Paper

Collateral Loans

Northwest ern Banker, December, 1948



tion wil] be worth more as taxes rise.
The exempt market started downward
earlier than the general bond market
and went further. Relatively, taxexempt obligations are cheaper than
taxables. Finally, the electorate turned
down roughly half of the proposals
laid before them for approval. Thus,



the supply of municipals likely will
not be unwieldy or too much for the
market to digest.
Certain, special types of municipals,
more particularly the so-called reve­
nue issues, are brought to market at
unusually generous yields. Each, of
course, must be studied on its indi­

iii Progress

Incorporated 1933

W e are proud of our record
in the Insurance field and of

Home Office

Des Moines, Iowa

our Banker Representatives.


W e write a complete line of

This is Iowa’s oldest surety company.
A progressive company with experi­
enced, conservative management.
We are proud of our two hundred
bank agents in Iowa.
To he the exclusive representative of
this company is an asset to your bank.

Fire - Windstorm - Automo­
bile & Plate Glass Insurance





Secretary and Manager

“ Mutual Insurance Is American

Assistant Secretary

vidual merits, but in cases where the
engineers, the lawyers and the invest­
ment bankers associated with the proj­
ect, are outstanding in their resective
fields, the likelihood is that the obli­
gation is sound.
When yields of
around 3 per cent are available, and
insurance companies are prominent
buyers, there is an implied further
endorsement. The indicated approval
of the insurance companies is impor­
tant, because these buyers are little
interested in tax exemption, hut do
want to feel reasonably sure that they
will get the interest and principal
when due.—The End.

Personnel Manual
Hailed as a milestone in the recruit­
ment and training program being de­
veloped by the Investment Bankers
Association of America, a new Per­
sonnel Selection Manual is currently
being made available to member firms,
according to John F. Fennelly, Glore,
Forgan & Company, Chicago, chair­
man of the I. B. A. education com­
The manual and related interview­
ing and testing materials are based on
a study of the abilities and character­
istics responsible for success in in­
vestment banking work. More than
600 individuals from member firms,
including partners, executives, senior
salesmen, traders, analysts, and other
personnel, were tested and inter­
viewed as a part of the study.
The completion of the project was
the responsibility of a sub-committee
of the education committee under
Nathan D. McClure, Harriman Ripley
& Company, Incorporated, Chicago,

W e appreciate the co­


operation and confi­
dence of our many

ÇlvÙÀiMCLbu io (ÿ o iL

banker friends as you

. . . and our Sincere Thanks for

another year of fine

as you have over the
past 30 years.

Harold S. Evans, President
H ub be ll


Northwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis


continue to express it
in words and action



Io w a

Policyholder’s National Liie
Insurance Company
Sioux Falls, South Dakota



it r a sons
fft sttranrr H rosprril #/


. #


Expanding Markets and More Favorable
Business Conditions Indicate a Bright Outlook
Executive Vice President and Actuary
Ohio National Life Insurance Company
and figures of statistics in­
dicate long-range prosperity for all

the selection departments of the in­
surance companies no longer fear ju­
venile insurance as they did a num­
ber of years ago.
The death rate at the extremely
young ages has dropped tremendously.
Companies have now written juvenile
insurance for a sufficient time to have
more adequate mortality investiga­
tions of this type of business. We
have found no evidence of market
anti-selection against the company.
More and more insurance companies
are liberalizing their underwriting
rules on juvenile risks. We are ac­
cepting larger policies on individual
juvenile lives—amounts we would not
accept before.

<.f us who make life insurance our
business. Contrary to popular belief,
actuaries can be optimistic!

Juvenile Insurance
A. The grass roots of the life in■ surance market is represented by
people. Recent estimates place the
population of the United States at
slightly over 145 millions. That is the
same thing as adding six states the
size of Ohio, or thirty states the size
of Nebraska, or 160 like the state
of Wyoming. Besides we now have
about 40 million family units in this
great country of ours as compared
with 24 million in the year 1920. This
growth in the number of people alone
should bring about a continuation of
the high plateau of life insurance
During 1947 the United States birth
rate was over 26 per thousand of
population as compared with a prewar
rate of under 18 per thousand, or an
increase of almost 50 per cent; 1947
was the highest birth year on record
and, although 1 get my statistics from
an entirely different source than those
obtained by Walter Winchell, it is in­
dicated that the birth rate for 1948
will be just as high if not higher.
Obviously, therefore, we are going to
have a great many more children in
the United States for the next gen­
eration. While this may constitute a
real problem for our boards of edu­
cation, it certainly should mean the


D id

you know

in s u r a n c e

Educational Policies
As the years pass, this bumper
■ crop of new infants will reach the
age where parents will become more
and more concerned with the cost of
M. R. D O D S O N
“ A ctuaries can be o p tim istic”
their schooling. This means educa­
tional insurance should grow in popu­
selling of a huge volume of juvenile larity. Even assuming that the birth
life insurance.
rate drops back to the prewar level,
In addition, the life insurance in­ there still will be many thousands
more people in these United States
dustry’s attitude towards juvenile
risks has changed for the better dur­ than were expected before the war.
ing recent years. You are all famil­ More children per family means more
need for life insurance.
iar with the fact that most companies,
in connection with the adoption of
In 1938 parents of children under
t h e so-called Guertin Legislation,
15 bought only 70 million dollars
moved to a full benefit at age one basis worth of life insurance on the lives
for juvenile insurance. While this of their offspring. By 1944 this figure
should encourage the sale of life in­ had grown to 850 million dollars. In
surance, the really important factor
1947, according to Institute of Life
of the change is the indication that
Insurance estimates, the purchases of

t h a t a d o p tio n o f o u r C a s h L e t t e r

e n a b le s y o u

to d is p e n s e w ith

d e ta ile d

C a s h L e t t e r t r a n s c r i p t s a n d k ee p o n ly a d u p lic a te
a d d in g m a c h in e t a p e ?

A sk

u s f o r d e t a ils .

Federal Reserve Bank of St. Louis

Scarborough & Company


Insurance Counselors


to Banks

Northwest ern Banker, December, 1948



juvenile life insurance approached the
three billion dollar mark! Total life
insurance in force on the lives of chil­
dren under 15 increased to nearly 15
billions at the close of 1947.

of policies bought by women is run­
ning at about three billions a year,
which is the all-time high record. It
is now predicted that if present high
employment rates continue, by 1950
one out of every three women over
Women’s Market
14 years of age will hold a job. This
Before the war women were buy1 surely indicates an expanding wom­
. ing about 20 per cent of the poli­ en’s market.
cies sold and we wanted to increase
Smart working girls are no longer
this percentage, but we did very little
waiting for heaven to protect them!
about it. Then along came World
They are protecting themselves and
War II and sales to women zoomed
are doing it in a pretty big way. More­
up to over a third of the policies sold.
over, as they step up the business lad­
We began to hear a great deal about
der, their incomes run into some fancy
the importance of the expanding wom­ figures. Our underwriting department
en’s market. Since the war, with the
is seeing more and more applications
return of the armed forces, the amount for sizable amounts of insurance on


female lives. Don’t miss your oppor­
tunity in this new field!

Retirement Income
Besides the high birth rate and
■ the increased number of women
in industry, the population as a whole
is living longer and there are more
old men and old women in our popu­
lation. In 1940 the number of people
in the United States age 65 or over
was 9,000,000. Now there are 10,600,000 and it is estimated that by
1975 there will be 17,500,000. It is
the life underwriter’s duty to see that
as many of these people as possible
are adequately taken care of during
their old age, not only by adequate
provision of beneficiaries, but by the
selling of retirement income insur­


Higher Living Standard
There are now about 13,000,000
. families in the United States
earning less than $2,000, as compared
with 33,000,000 in 1938. Those 20,000,000 extra families are now making
more money; for example, in the $3,000 to $5,000 range there are now
over 12,000,000 families compared to
less than 2,000,000 in 1938. In the
over $5,000 classification, the number
has changed from only 800,000 to
over 9,000,000 in the same period.



... tailored

Higher Surplus Income

your bank .


he individual investment requirements of your
bank can be met efficiently by our Investment Division.
And having the American National do your purchasing
and selling frequently saves money for your bank.
Here’s the reason: W hen we buy or sell Government,
stale, or municipal securities for your account, we exe­
cute your orders in the open market to give you full
advantage of the best available prices. You decide what
is to be bought or sold, we handle the details.
The fine background of experience of the men in
our Investment Division may also be of value to you
in the analysis of your investment account. Why not
discuss your investment problems with us?









Northwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis




And speaking of this higher
« standard of living, did you know
that, in spite of higher costs of living,
the surplus income of individuals is
higher than it has ever been before?
Authoritative sources indicate that
disposable income available for discre­
tionary spending or saving will prob­
ably attain an annual rate of 94 billion
dollars over and above the comparable
surplus income in 1940. This takes
into full account the higher taxes that
are being paid and a 70 per cent in­
crease in consumer prices that apply
to basic living costs. Stated another
way, the average family this year will
have approximately $2,400 of surplus
income as compared with $750 surplus
income in 1940.
Now if people are willing to spend
this surplus income for items on which
prices have doubled or tripled in the
past few years, surely they will be
willing to put more dollars into an
adequate life insurance program. Do
you realize how very little the cost of
insurance has increased in a corre­
sponding period of time? Take, for
example, an ordinary life policy issued
at age 35. Back in the depths of the
depression, that policy was quoted in
our rate book at a non-participating
premium per thousand of $19.91. The
average twenty-year net cost of that
same insurance protection today, ac­
cording to our current rate book, is
(Turn to page 69, please)



Honor youth Leaders

M innesota


Open House Celebration
The Farmers National Bank of Min­
nesota Lake, Minnesota, observed its
45th anniversary of founding last
month with an open house celebration
attended by bankers from 14 other
cities, in addition to the many guests
from Minnesota Lake.
The Farmers National was organ­
ized in the fall of 1902, the bank build­
ing was erected during the following
months and in the fall of 1903 the
doors were opened for business. First
president of the bank was Herman
A. Zabel. Six other men have followed
him in the presidency of the bank,
G. A. Breske holding that position at
the present time. Other officers in the
bank are: E. L. Kauffmann, cashier,
and D. J. Townsend, Helen Jean Beyer
and Lila Roessler, assistant cashiers.
Since the opening date in 1903, the
Farmers National has increased depos­
its from $7,756 to $1,673,800, and is
capitalized at $11,940.


ier of the Farmers State Bank and
more recently in the loaning division
of the LaSalle National Bank of Chi­
cago, have purchased the interest of
W. F. Dietlein in the Dairyland State
Bank at Bruce, Wisconsin, with sta­
tions at Sheldon and Exeland.
Keith Garnatz, who was elected pres­
ident last month and who is now tak­
ing active charge of the Dairyland
State Bank, resigned his position at
the Chicago bank.
G. B. Stanton, assistant cashier of
the Farmers State Bank at Lyle, has
been elected assistant cashier of the
Dairyland State Bank.

New Director
Dr. F. R. Kotchevar was elected a
director of the First National Bank
at Eveleth, Minnesota. He will fill out
the unexpired term of Grove Gable.

Rid Price Record

4-H Club Fun Day
The Le Sueur, Minnesota, Commer­
cial Club sponsored its first annual 4-H
Club Fun Day in the school auditor­
ium at LeSueur last month with 1,000
4-H Club members attending from Le
Sueur, Nicollet, Sibley and Scott coun­
One of the interested promoters of
this activity was J. T. Peterson, presi­
dent of the State Bank of Le Sueur,
who reports an excellent turnout and
program, but added that already plans
for an improved Fun Day next year
are being made by the Commercial

Purchase Wisconsin Bank
A. P . Garnatz, president of the Farm­
ers State Bank of Lyle, Minnesota, and
his son, Keith A. Garnatz, former cash
Federal Reserve Bank of St. Louis

C. W. Sagvold
W. Sagvold, 48, assistant cashier
of the State Bank of Cyrus, Minnesota,
died last month. He had been asso­
ciated with the State Bank of Cyrus
for the past 31 years. He is survived
by his wife, one son and one daughter.

County Bankers Meet
John O. Huso, president of the First
State Bank of Storden, Minnesota, was
elected president of the Cottonwood
County Bankers Association at a meet­
ing of the group held recently in Jef­
fers. Mr. Huso formerly served the
group as secretary-treasurer. Willis
D. Scroeder, cashier of the Farmers
State Bank at Mountain Lake, was
elected to that post at the meeting.

25th Anniversary
Albert C. Armstrong, president of
the Northwestern State Bank, Duluth,
the recipient last month of a number
of floral gifts from friends on his 25th
anniversary as a member of the city’s
banking fraternity. Mr. Armstrong
joined the bank’s forerunner, the Du­
luth Morris Plan Company, in 1923
and became president in 1938.

Anoka Banker Married
Dr. G. J. Hastings, president of the
First National Bank of Anoka, Minne­
sota, and Mrs. Sophia Nathe, Minneap­
olis, were married in Minneapolis last

Hits $10,000,000 Mark
The First National Bank of Hibbing,
Minnesota, completed its 50th year re­
cently by crossing the $10,000,000 mark
in deposits. This total makes the bank
the largest on the Mesaba range. Di­
rectors and officers observed the occa­
sion at a dinner honoring President
S. R. Kirby.

The thirteenth annual Leader’s Rec­
ognition banquet, sponsored by the
Jackson County Bankers Association,
was held at the Alpha, Minnesota,
town hall. The banquet was attended
by approximately 200 adult leaders,
junior leaders and representative of
the county’s banks.
L. P. Wagner, president of the Bank­
ers Association and cashier of the
First National Bank in Jackson, gave
a welcome to the group.
Member banks include First Nation­
al and Jackson State, Jackson; First
National and Farmers State, Lakefield;
First National, Heron Lake; First
State, Okabena, and Farmers & Mer­
chants State, Alpha.

Donald Crouley, vice president
Northwestern National Bank of
Minneapolis, congratulates Donald
Kvasnicka, Pratt, Minnesota, upon
winning top honors at the Junior
Livestock Show in South St. Paul.
Young Kvasnicka exhibited the
Grand Champion Chester White barrow shown in the above picture and
the Northwestern National made a
record bid o f $3.75 a pound, paying
the farm youth $1,035 for the 276pound animal.

Chisago Bankers Hosts
The annual Chisago county 4-H
Achievement Dinner was held in Cen­
ter City, Minnesota, last month. This
annual event is sponsored by the Chi­
sago County Bankers Association to
honor 4-H Club members and junior
and adult leaders f o r outstanding
achievement during the year. More
than 50 medals and prizes were
Northwest ern Banker, December, 1948


Individual Attention . . . 1 5 0 ,0 0 0 tim es a d ay
25,000 checks an hour pass through Northwestern Bank’s huge, air conditioned
Proof Transit Department. Y et every item gets fast, up-to-the-minute individual
attention with the newest in machines and automatic equipment operated by
alert, skilled personnel.
Mark Spinner, Transit Department Manager, left, points out to Keith Barnett,
Assistant Cashier, Department of Banks and Bankers, the personal attention
each remittance receives, while discussing with him the Proof Transit Depart­
ment’s operations.
Your bank can enjoy the advantages of Northwestern’s modern, fast-moving
Transit Department too, by making full use of its facilities. W e are as near as
your telephone, typewriter or telegraph.
Department of Banks and Bankers
D . E. C R O U L E Y , V ice P re sid en t
F. W . C O N R A D , V ice P resid en t
K . M . H A R N E T T , A sst. C a shier

L. P. G IS V O L D , A sst. V ice P resid en t
A . F . JU N G E , A sst. C ashier
L. M . B R O O M , R e p r e s e n ta tiv e

N a tio n a l B a n k of M in n ea p o lis
Marquette A venue— Sixth to Seventh Streets
M ember Federal Deposit Insurance Corporation
Affiliated with Northwest Bancorporation

N ort hwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

HE Marquette National Bank of
Minneapolis has increased its cap­
ital fund to exceed $1,250,000, accord­

banks by Gov. J. A. O. Preus in 1921.
He served in that capacity until 1923.

ing to a recent announcement by Rus­

Dr. J. Marvin Peterson, research di­
rector for the Minneapolis Federal Re­
serve Bank, spoke at the annual meet­
ing of the Minneapolis Retailers As­
sociation recently.

sell Stotesbery, president.

The increase was effected by pay­
ment of a stock dividend of $150,000,
or $50 a share from undivided profits,
and issuance of 1,000 shares of new
capital stock at a paid-in value of $150,000.
The bank’s capital structure now in­
cludes capital stock of $500,000, consist­
ing of 10,000 shares of $50 par value,
and surplus account of $500,000, plus
undivided profits approximating $250,000.
More than 50 bankers from Minne­
sota, North and South Dakota gathered
in St. Paul recently for a regional
inter-chapter faculty conference spon­
sored by the American Institute of
Roy A. Johnson of the Drovers Ex­
change Bank of South St. Paul was
general chairman. LeRoy Lewis of
New York, education director of the
AIB, conducted the conference.
Various phases of the banking busi­
ness were discussed. Those in attend­
ance were asked to transmit their in­
structions to their chapters.
Directors of Northwest Bancorporation recently declared a dividend of
50 cents per share, together with a
special dividend of 10 cents per share
on the 1,547,767 shares of stock out­
This makes total dividends for 1948
$1 a share, the same as in 1947, accord­
ing to J. Cameron Thomson, president.
Frank E. Pearson, former Minnesota

superintendent of banks, died recently
in Fort Wayne, Indiana, at the age of
78. Services were conducted in Pipe­
stone, Minnesota.
Mr. Pearson became associated with
the Pipestone State Bank in 1890 as
bookkeeper. He was elected cashier
in 1895 and vice president in 1908, and
held the latter position at the time of
his appointment as superintendent of
Federal Reserve Bank of St. Louis

F. A. Amundson, state commissioner

of banks for Minnesota, gave an ad­
dress at a dinner sponsored recently
in St. Paul by the Minnesota League
of Credit Unions.
E. E. T.hwing, assistant secretary of
the St. Paul Federal Land Bank, es­
caped injury recently when his auto­
mobile skidded, then rolled over near
St. Paul. His wife was injured in the

Open house was held recently at the
First Bloomington Lake National
Bank of Minneapolis to celebrate com­

pletion of extensive remodeling work
begun last spring.
A new addition has been provided
at the rear of the building. The entire
structure is air-conditioned. Commer­
cial tellers’ machines were installed,
and a new luncheon space provided
for employes.
Deposits of the bank now total more
than $11,000,000. It is an affiliate of
the First National Bank of Minne­
apolis. Officers include John G. Maclean, president; A. S. Newcomb, vice
president; Leonard R. Oberg, vice
president; Carl D. Strom, cashier, and

Londell W. Johnston, assistant cash­
Directors are Mr. Maclean, Mr. New­
comb and Alvin T. Anderson, Anton
G. Hanson, Keith K. Keller, H. Knudsen, Dayton Rogers, Theodore O. Sather and Carl H. Swanson.

Members of the public speaking club
of the American Institute of Banking’s
St. Paul chapter heard talks by Veron­
ica Brisbois and Warren Hinze at a
recent dinner meeting of the club.
Anne McGrath, chairman, presided.
Charles W . Burges, vice president
and cashier of the Security National
Bank of Edgely, North Dakota, and
Ray C. Lange, president of the Chip­
pewa Canning Company, Chippewa
Falls, Wisconsin, recently were named
directors of the Federal Reserve Bank
of Minneapolis, according to announce­
ment by Roger B. Shepard, chairman
of the board.
Mr. Burges is a new member of the
nine-man board, and Mr. Lange was
re-elected to the position he has held
since 1943. Both will serve three-year
terms, beginning January 1st.
Mr. Burges has been active in North
Dakota banking since 1910 and is a
past president of the North Dakota
Bankers Association. He succeeds F.
D. McCarthy, president of the First
National Bank of Oakes, North Dakota,
who was not a candidate for re-elec­
Paul G. Bremer, vice president of

Accident Insurance, $5000 Principal Sum for
only $2.00 Paid Up in Full to the Middle of
next March.

2550 Pillsbury Ave. So.

Minneapolis 4, Minnesota

Northwest ern Banker, December, 1948


Minnesota News

Departments. Our remittance serv­
ices include commercial, benevo­
lent and living expense payments
abroad by cable, mail or airmail.
Experience developed over the
years, and close friendly relation­
ships with worldwide correspond­
ent banks are available to assist do­
mestic banks to establish or extend
their own remittance service. W e
welcome your inquiries.



Public National

the American National Bank of St.
Paul, died of a heart attack recently
after collapsing in the St. Paul city
hall. He was 61 years old.
Mr. Bremer also was secretary-treas­
urer of the Jacob Schmidt Brewing
Company of St. Paul, and served that
firm as legal adviser. He was a gradu­
ate of the University of Minnesota and
Yale University law schools.
Among survivors is a brother, Otto
Bremer, chairman of the board of the
American National Bank. Funeral
services were held at St. Mary’s Epis­
copal church, St. Paul, of which Mr.
Bremer was a member.
Two Minneapolis bankers t o o k
prominent parts in the city’s Sister
Elizabeth Kenny foundation campaign
in November.
Patrick Colbert, assistant cashier of
the First National Bank of Minne­
apolis, served as a chairman of the
city wards committee. John P. Knut­
son, assistant cashier of the Midland
National Bank of Minneapolis, was
chairman of the downtown business
district committee.

M ain Office: 37 Broad Street
M em ber: Federal R eserve System
N e w Y ork Clearing H ouse
Association, Federal D eposit
Insurance C orporation

J. Cameron Thomson, president of
the Northwest Bancorporation, spoke
at a recent dinner meeting of the Har­
vard Business School Alumni club in

Minneapolis. Arnold J. Ryden, of the
Northwestern National Bank of Min­
neapolis, was in charge of reservations
for the dinner.
A new home planning center has
been established by the Farmers and
Mechanics Savings Bank of Minne­
apolis. It will be conducted in co­
operation with Better Homes and Gar­
dens magazine, and will furnish the
public information on building, re­
modeling and decorating and house
plans. Henry S. Kingman is presi­
dent of the bank.
For the first time in Minnesota, de­
posits in state banks and trust com­
panies now exceed $1,000,000,000, ac­
cording to a recent announcement by
F. A. Amundson, Minnesota state com­
missioner of banks.
Deposits of all kinds increased $29,851,246 during the third quarterly
period of the year to a total of $1,004,528,734. Mr. Amundson’s report cov­
ers 499 state banks, one savings bank
and four trust companies.
The report shows an increase of
$6,560,306 in loans and discounts for
the three-month period to a total of
Program details for the 1949 Farm
Forum to be sponsored March 10th
and 11th by the Minneapolis Chamber
of Commerce were announced recently
by H. E. Atwood, general chairman
of the forum and president of the First
National Bank of Minneapolis.
According to Mr. Atwood, the list of
speakers will be headed by Senator
George Aiken, Vermont Republican.
The forum will be open to farmers and
businessmen of the midwest area.
Joseph R. Byers, former
the Northwestern National
Minneapolis, died recently
dena, California, friends in
olis were notified. He was
of age.



Rooms fro m $3. J

V *y

The ultimate in facilities for recreation and
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include the finest in therapeutic baths with
complete massage. Luxurious accommoda­
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listed by committee on American Health Resorts
of the American Medical Association

Federal Reserve Bank of St. Louis

officer of
Bank of
in Pasa­
73 years

Twenty-four new members were in­
ducted recently into membership in
the Clipper club, organization of em­
ployes who have served 25 years or
more in the First National Bank of
Minneapolis or its affiliates.
Inducted were Andrew M. Blood,
Anna M. Condon, M. O. Grangaard,
Ralph V. Hagen, William J. Holman,
Jr., William R. Jackson, Mary E. Joy,
Clarence E. Eadd, Dorothy Lawson,
Laura W. MacMains, Myrtle Mahoney,
Hazel R. Nelson, Waldemar E. Nelson,
Arthur C. Regan, Sophie Riley, Arthur
M. Rolfnes, Philip W . Schrader, Lee
A. Short, Helen M. Stellick, Melvin
H. Swanson, Ludwig C. Vobayda, Lew

Minnesota News
Wallace, George H. Wet ley and Wil­
liam H. Williams.
William E. Neudeck, assistant vice

president and manager of the bank’s
St. Anthony Falls office, was toast­
master at the dinner. Club officers are
Charles Cells, Gordon Olson, Mildred
Olson, Herbert Hamren, Jarl Olsen,
Jessie Millar, George Hirsch, Carl
Turnrose and Ben Woodworth.

A new series of advertisements
similar to those opposing communism,
which won the Columbia Heights
State Bank national recognition, was
announced recently by Herbert Wood­
ward, vice president of the bank and
originator of the ads.
The new series, based on “Why I’m
Proud to Be an American,” will show
that private enterprise is responsible
for the nation’s blessings, Mr. Wood­
ward said.
They will emphasize that America
has the greatest freedom, the most in­
telligent labor and labor unions, the
most productive farmers, finest ma­
chinery, best and most widely read
publications, finest c h u r c h e s and

about five years ago and also served
at city clerk. He was grand master
of the grand lodge of United Work­
men, with offices at St. Paul. A vetern of World War II. he was 38 years


Mr. Schmidt’s death apparently oc­
curred when he stumbled in a field
while carrying his 12 gauge shotgun,
the discharge striking him in the head.
His death was one of a number of
hunting casualties during the fall hunt­
ing season in Minnesota.

H ea d s A noka Bank
James B. Berry was elected presi­
dent of the State Bank of Anoka, Min­
nesota, last month following the acci­
dental death of R. W. Schmidt. Mr.
Berry had been vice president of the
bank. E. L. Jorgensen was elected to
the board of directors to fill the va­
cancy caused by Mr. Schmidt’s death.
J. J. Schmidt was advanced from as­
sistant cashier to the position of vice

W. L. Eiler
W. L. Eiler, 38, cashier of the Secu­
rity State Bank at Cannon Falls, Min­
nesota, was killed last month when
his private plane spun into the ground
near his home. His 12-year-old son.
Quentin, was critically injured in the
crash. Mr. Eiler had flown over his
home, waving to his wife and another
son, Jimmy, when motor trouble de­
veloped and the crash resulted.

Bert K. Johnson, who was associated
with the First National Bank of Min­
neapolis for 15 years, died recently in
Minneapolis at the age of 61. At the
time of his death he was manager of
the Tolversen agency in Fulda, Minne­
sota, an insurance and farm manage­
ment firm.
Gordon Murray, vice president of
the First National Bank of Minne­
apolis, addressed member of the
Minneapolis Retail Credit Association
recently on “The Importance of Credit
in the National Economy of Today.”
Merth E. Mortenson, vice president of
the Marquette National Bank of Min­
neapolis and president of the associa­
tion, presided at the meeting.

Creation of a Minnesota economic
development foundation was urged re­
cently in a report by the Minnesota
Economic Development council. Serv­
ing on the suggested board of 25 di­
rectors would be the presidents of the
Minnesota Bankers Association and
the Federal Reserve Bank of Minne­
apolis. Other economic interests of
the state also would be represented.
W. L. Eiler, cashier and vice presi­

dent of the Security State Bank of
Cannon Falls, Minnesota, was killed
recently when the light plane he was
flying crashed at Cannon Falls. His
12-year-okl son, Quentin, was injured
Mr. Eiler was mayor of Cannon Falls
Federal Reserve Bank of St. Louis

Special Attention given
to Accounts from Banks

H arris Trust a n d Savings Bank
O rgan ized as N . W . Harris & C o . 1 8 8 2 • Incorporated 1 9 0 7
1 1 5 W e s t M o n r o e Street, C h ic a g o 9 0
M em ber F ed era l Deposit Insurance Corporation

Northwest ern Banker, December, 1948


Minnesota News

Sell Blackduck Bank
The Blackduck State Bank, Blackduck, Minnesota, has been sold to a
group of Blackduck and Bemidji busi­
ness men. Cashier I. J. Hauge, who
has been managing officer of the bank,
was advised by his physician to re­
tire from the bank and subsequently
sold his stock. Bresident H. C. Baer
sold most of his stock also, but was
renamed president of the bank by the
new stockholders. Tom Abrahamson
has sold his entire stock and resigned
as vice president.
In addition to Mr. Baer, the new
officers of the bank include Dr. H. A.
Palmer, vice president, and O. E. Jamtaas, cashier. The latter had been as­

sistant cashier in the bank previously.
The board of directors now consists of
Mr. Baer, Dr. Palmer, J. C. Huffman,
Fred Magnuson and Mr. Jamtaas.
Deposits of the Blackduck State
Bank currently are about $850,000 and
total capital accounts were $57,000.

Organize A.I.B. Classes
Twenty-five officers and employes
of six banks gathered at the State
Bank of Le Sueur, Minnesota, recently
to organize a study group under the
American Institute of Banking.
The gathering elected E. C. Schmid,
assistant cashier of the State Bank of
New Prague, as its chairman, and R.
J. Effretz, assistant cashier of the



The Heart ot the Live Stock Business


M A R K A. W I L S O N
V ic e President
W I L L I A M C. S C H E N K
Asst. V . Pres, and Cashier
C L I F F O R D L. A D A M S
A sst. V ic e President
J O H N S. H A V E R
A sst. Cashier
Asst. Cashier and A uditor
K I N L E Y W . S M IT H
A sst. Cashier
F ield R epresentative

To the right, to the left and front
and rear, we are practically sur­
rounded by millions of dollars worth
of cattle, hogs, sheep, packing plants
and the Sioux City Stock Yards. On
every hand are feeders, shippers,
packers, grain men, and thousands
of men and women who direct the
conversion of the live stock of the
great Northwest into bacon and beef
for your table.
With this splendid location— right
in the "Y ard s”— plus years of experi­
ence in the live stock business, where
can you equal the correspondent
service available here at the Live
Stock National Bank in Sioux City?
W e invite your account.

National Bank




Northwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis

State Bank of Belle Plaine, its vice
chairman. The group will be known
as the Minnesota Valley Study Group.
Ronald Harrison, assistant vice presi­
dent of the Marquette National Bank
of Minneapolis, will be the instructor
for the first course. Meetings are to
be held at the First National Bank of
New Prague.
The six banks organizing the study
group are the State Bank and the First
National of New Prague, State Bank
of Lonsdale, State Bank of Belle
Plaine, State Bank of Le Sueur and
the Northwestern State Bank of Jor­

Minnesota Association
Will Sponsor Youths
The youth activities committee of
the Minnesota Bankers Association
has recommended that the association
sponsor four Minnesota 4-H Club mem­
bers who will attend the annual 4-H
Congress in Washington next June.
V. Torgerson, president of the
Farmers State Bank at Adams, said
the committee plans to have the out­
standing 4-H members attend the as­
sociation’s annual meeting June 8th9th, where they will receive the
The agriculture committee of the
MBA also voted to make a survey of
Minnesota bankers to find out what
they are doing to assist farm activities
and what can be done by member

Crookston Bank Officers
Virgil L. McGregor was elected
chairman of the board and Donald T.
Lawler was advanced to the presi­
dency of the Crookston National Bank,
Crookston, Minnesota, at a recent
meeting of the new board of directors.
The election followed sale of ma­
jority stock by the estate of the late
president, G. O. Hage, his widow, and
a brother, Rasmus Hage of Warren.
All three had been on the bank’s di­
rectorate. Their places on the board
have been taken by Dr. M. O. Oppegaard, R. A. Mason and C. J. Tvedten,
all of Crookston.
E. A. Zitzer, also a board member,
was elected vice president, taking the
position vacated by Mr. McGregor.
No new cashier has been appointed
as yet.

Minneapolis Man Speaker
William R. Chapman, vice president
of the Midland National Bank of Min­
neapolis, was guest speaker at a noon
luncheon last month of the White Bear
Association. Mr. Chapman discussed
the bank’s place in the community,
describing various internal operations
of the bank and its service to the city.


Sonili Dakota


** **

J . M . LLO YD




l!P /i t (¿roup
ERE in brief is a summary of the
activities of South Dakota Group
meetings held November 1st through
6th. The following officers were
elected to Group positions:
Group 1—President, H. C. Danforth,
vice president and cashier, First Da­
kota National Bank, Yankton; vice
president, C. W. Harrington, presi­
dent, Dakota State Bank, Colman; sec­
retary, R. B. Knudsen, assistant cash­
ier, American State Bank, Yankton.
Group 2 — President, E. O. Ander­
son, vice president, Farmers & Mer­
chants Bank, Watertown; vice presi­
dent, Earl Baertsch, Peoples Bank,
Conde; secretary, L. L. Mann, vice
president and cashier, Clark County
Bank, Clark.
Group 3 — President, O. E. Fristad,
cashier, Mitchell National B a n k ,
Mitchell; vice president, Leland Steele,
vice president, Farmers & Merchants
Bank, Huron; secretary, L. A. Meyers,
assistant manager, Northwest Security
National Bank, Huron.
Group 4—President, Max Gutz, cash­
ier, First National Bank, Selby; vice
president, Clarence Knudson, cashier,
Leola State Bank, Leola; secretary,
Dale Lesher, cashier, Citizens Bank of
Group 5-—President, Ralph Mattson,
vice president and manager, Branch
First National Bank of Black Hills,
Hot Springs; vice president, Earl Kel­
ler, cashier, Rapid City National Bank,
Rapid City.
The following were selected as host
cities for next year’s Group meetings:
Yankton for Group 1; Watertown for
Group 2, Huron for Group 3. Groups
4 and 5 will select their meeting place
at a future date.
Carl E. Bahmeier, Jr., secretary, says
the attendance at the Group meetings
was the largest in the history of the
South Dakota Bankers Association.
Included on the programs were: J. M.
Lloyd, Yankton, president of the South
Dakota Bankers Association; Josh Lee,
nationally known humorist and mem­
ber of the Civil Aeronautics Board;
Harold D. Fewings, Leola, A. A. A.
Federal Reserve Bank of St. Louis

Office; F. M. Clark, Minneapolis Fed­
eral Reserve Bank; Robert Callaghan,
John Hancock Life Insurance Com­
pany, Minneapolis, and the presidents
of each Group.

Cashier at Lake Preston
Harmon Kopperud, president of the
Community State Bank, Lake Preston,
South Dakota, announces the election
of Mark Atwood as cashier of that in­
Mr. Atwood, a native of South Da­
kota and a former resident of Lake
Preston, has had banking experience
in several South Dakota banks, and
comes to the Community State from
the Foster County State Bank, Car­
rington, North Dakota, where he has
been cashier for the past two years.

In Sioux Falls Bank
George Beck, Hawarden, Iowa, has
accepted a position as teller in the
Gregory branch of the Northwest Se­
curity National Bank of Sioux Falls,
South Dakota.
Mr. Beck has been in the employ­
ment of the Northwestern National
Bank of Minneapolis and for the past
one and one-half years has been with
the Sioux Falls banking firm.
He fills the position created by the
recent resignation of Paul McKee.

Heads New Department
A new department, known as the
TIMEPAY bank credit financing plan,
is being instituted at the National
Bank of South Dakota, Sioux Falls,
Tom S. Harkison, president of that in­
stitution, announced.
It is in charge of Sterling H. Davis,
former branch manager for a large
finance organization in Billings, Mon­
tana. TIMEPAY is a system of finan­
cing purchase of automobiles, farm
equipment, home appliances, refrigera­
tors, and radios. Through it FHA
loans for home repair, improvement
and modernization are also obtainable.

Open House
Residents of Madison, South Dakota,
and vicinity were invited to an open

house event at the Security Bank &
Trust Company, in connection with
the corn show staged by the bank.
About 100 entries of corn were re­
ceived, with five ears entered by each
grower. They were displayed in the
lobby on a rack built along the wall.

Branch Opens
Kadoka, South Dakota, citizens are
now able to go to a bank in their own
town for the first time in 20 years.
A bank has opened there under the
management of the Belvidere State
James Pier is in charge of the new

With Sinai Bank
Vernon Buck has recently resigned
a position which he held for eleven
years with the Northwest Security
Bank in Madison, South Dakota, to
accept a position with the First State
Bank at Sinai, and has purchased a
home in that town for the occupancy
of his family.

County Meeting
A meeting of the Deuel-Hamlin
County Bankers Association was held
in Estelline, South Dakota, recently.
Presiding was H. F. Anderson, cashier,'
Deuel County National Bank, Clear
Lake, chairman of the group.
The group discussed numerous bank­
ing topics, also ways that the banks
can encourage farmer participation in
soil conservation.
Those present were L. C. Ribstein
and Harvey Eichinger, Bruce; L. A.
Jacobson and Neil Jacobson, Bryant;
C. N. Halverson, Castlewood; A. G.
Berger, H. F. Anderson and N. A.
Dobie, Clear Lake; L C. Foreman and
R. F. Petschow, Elkton; L. A. Lohr,
Lake Norden; F. A. Olson and C. G.
Martinson, Toronto; James Erickson
and Lynn Kalvig, Hayti; Carl Bah­
meier, Huron; Fred Beskow, Walter
K. Johnson, Laurence Gratz, Virgil
Moul, C. P. Leonard and A. J. Lundberg, Estelline.

S io u x F a ils N ow #
Frank J. Cinkle, vice president and

cashier of the National Bank of South
Dakota, was re-elected treasurer of the
Sioux Empire Fair association, of
which he was also named director for
three years. Dr. S. A. Donahoe, a di­
rector of that bank, was re-elected vice
president of the fair association. Tony
Westra, agricultural and livestock rep­
resentative of the Northwest Security
National Bank, was named to the fair
association’s executive committee.
Funding bonds in the amount of $17,000 were sold by the city of South
Sioux Falls to the Union Savings
Northwest ern Banker, December, 1948


South Dakota News

Bank. The city commission accepted
the bank’s hid of 2 per cent interest
plus a $20 premium. The bond issue
was floated to pay off indebtedness
against the municipality. It was ap­
proved in an election this fall.

He opened a bank in Hudson, South
Dakota, before founding the Loonan
Lumber Company in that towm in

W. E. Perrenoud, cashier of the
First National Bank and Trust Com­
A . Bray, assistant cashier of the pany, was re-elected to a two-year term
Northwest Security National Bank, as director of the Minnehaha Country
was re-elected illustrious grand treas­ club.
urer of the Grand Council of Royal and
Select Masons of South Dakota at its
32nd annual assembly at Aberdeen.

"Good Human Interest Stories"
“ I was very well impressed with your ar­
ticle ‘About Bankers You Know’ in the last
issue of the N orthwestern B anker .
“ These little side lights on the great and
near great are good human interest stories.”

Fred W. Thomas, President,
First National Bank, Omaha,

"Very interesting"
“ We do enjoy reading the N orthwestern
B anker each month as it is very interesting
to read the bank news from many states.”

L. E. Callahan, President,
The First State Bank,
Munich, North Dakota

(Continued from page 9)

Tom S. Harkison, president of the

National Bank of South Dakota, an­
nounced that his institution has added
a new department, known as the
Timepay bank credit financing plan.
It is in charge of Sterling H. Davis,
former branch manager for a large
finance organization in Billings, Mon­
C. A. Christopherson, chairman of
the board of the Union Savings bank,
addressed the annual rally and dinner
of the Minnehaha County Historical
society. He voiced hope that the Tru­
man administration and Congress will
be able to work out an amicable un•derstanding with the Soviet Union.
The former U. S. representative sug­
gested a meeting of authorized repre­
sentatives of all countries concerned
in the controversial issues to be solved.
Hubert Loonan, president of the
Loonan Lumber Company and resi­
dent of Sioux Falls since 1902, died at
his home at the age of 85. He had
been in failing health for about a year.

in view of the fact that the FDIC stands
foursquare and alert to their protection at
all times.
“ In this connection, it is most interesting
to note that we are now in the fifth year in
which there has not been a bank receiver­
ship, involuntary liquidation or a loss of a
single dollar to any depositor in an insured
bank. Thanks to the cooperation of bankers
and publishers like you, this performance is
an all-time record for America.
“ We sincerely appreciate your constructive
viewpoint in ‘Across the Desk from the
Publisher’ on our approach to the problem
o f adequate surety coverage which, in the
final analysis, definitely insures and protects
the equity and/or the stockholders’ interest
in the banks so insured because, as you know,
when a bank fails as the result of lack of
integrity of an officer or an employe, the
first things to be plowed under is the capital
structure. We, therefore, feel that a bank
should carry the primary maximum coverage
recommended by the A B A Insurance Com­
mittee ; furthermore, excess, which can be
purchased at a very nominal rate, should be
carried equal to the capital structure of the
bank. Thus, the stockholders’ interest is in­
sured at all times.”

Maple T. Karl, Chairman,
Federal Deposit Insurance
Corp., Washington, D. C.

"Comprehensive Coverage"
“ As I believe I have told you on other
occasions, the N orthwestern B anker is
‘tops’ on our list because of its lively, inter­
esting and comprehensive editorial cover­

C. A. Kemminger, Assistant
Cashier, American National
Bank 4' Trust Company,
Chicago, Illinois

"Like It Very Much"
“ We look with interest for the arrival
each month of the N orthwestern B anker,
as we like it very much.”

J. 0. Wheaton, Assistant
Cashier, Farmers S t a t e
Bank, Marcus, Iowa

"Punch and Effectiveness"
“ Fortunately

for me, a copy of the
Northwestern B anker, comes to my desk
regularly and I enjoy it thoroughly. Allow
me to congratulate you on the punch and
effectiveness of your column, ‘ Across the
Desk from the Publisher’ .”

Paul M. Underwood, Mana­
ger, Bank Division, Chemical
Bank 4' Trust Company,
New York, New York

"We Like It Very Much"
“ We like the N orthwestern B a n k e r a n d
Clifford De Puy’s editorials very much, More
power to him.”

E. H. Sutherland, President,
First National Bank, Beemer, Nebraska

"Favorably Impressed"
“ I was glad of the opportunity to become
acquainted with you and I trust that I shall
be seeing you from time to time during the
coming year. From what I have seen o f your
publication, the N orthwestern B anker , I
am very favorably impressed.”

Evans Woollen, Jr., Presi­
dent, The American Bankers
Association, Indianapolis, In­

S U v-n e& ib i n f j /i e c i a / S fe b v ic e P J ia n Á in ^

C e n t r a l Na t i o n a l B a n k
Member Federal Deposit Insurance Corporation
N orthw estern Banker, December, 1948
Federal Reserve Bank of St. Louis


Member Federal Reserve System

"Appreciate Fine Cooperation"
“ We certainly appreciate the very fine
cooperation that we have received from the
N orthwestern B anker since establishing
our new firm in Des Moines. It has meant
a great deal to us and has been a big part
in our success.”

K. K. Byers, President,
Bankers Service Company,
Des Moines, Iowa


.Vorih Dakota


W in te r
ORE than 150 members of the
North Dakota Bankers Associa­
tion attended a one-day Winter Con­
ference in Fargo.
The morning session was in charge
of Fred Krueger, former Internal Rev­
enue agent, and now associated with
the Northwest Audit Company. He
spoke on the new features of the Fed­
eral Income Tax law, and set up an
all-inclusive individual tax problem
and demonstrated how it should be
worked out.
Following Mr. Krueger, A. W. Sands
of the Western State Bank of St. Paul
and past president of the Minnesota
Bankers Association, discussed the
ruling of the Internal Revenue De­
partment with respect to reserves for
bad debts.
The afternoon session was devoted
to a panel discussion of Estate Analy­
sis, the new Federal Estate and Gift
Tax Laws, and Joint Tenancy. Burns
W. Swenson, assistant vice president
and trust officer of the Northwestern
National Bank and Trust Company of
Minneapolis; Adrian McLellan, vice
president and trust officer of the Mer­
chants National Bank and Trust Com­
pany of Fargo, and Philip B. Vogel,
attorney of Fargo, handled the panel
The meeting adjourned at 4:00 p. m.
and the Exchange Charge State Bank
Legislative Committee held a meeting
for the purpose of discussing the legis­
lative plans for the coming session.

New Group Officers
Following is a list of the group offi­
cers elected by the North Dakota
Bankers Association:

Northwest Group
President, Lloyd Nelson, cashier.
Scandia American Bank, Stanley.
Vice president, W. L. McClung, cash­
ier, State Bank of Kenmare.
Secretary-treasurer, T. A. Solheim,
vice president, American State Bank,
Member state nominating commit­
tee, Lee Stenehjem, assistant cashier,
Federal Reserve Bank of St. Louis

C. C.



f'onferencein F n r y o
First International Bank. Watford
Member State Executive Council. A.
R. Weinhandl, president, First Na­
tional Bank, Minot.

Southwest Group
President, T. W. Sette, Bank of
North Dakota, Bismarck.
Vice president, A. T. Zimmerman,
cashier, Bank of Beulah.
Secretary-treasurer, E. P. Daniels,
cashier, First State Bank. New Leip­
Member state nominating commit­
tee, I. E. Giedt, cashier. Farmers State
Bank, Richardton.
Members State Executive Council,
two years, Verne Wells, president, Se­
curity State Bank, Robinson; one
year, C. J. Bowers, cashier, First State
Bank, Regent.

Southeast Group
President, H. 1. Turner, cashier.
Farmers State Bank, Heaton.
Vice president, A. W. Eastman, cash­
ier, First National Bank, Milnor.
Secretary-treasurer, Harry L u n dholm, cashier, First National Bank,
Valley City.
Member state nominating commit­
tee, Earl Shaw, president, Fargo Na­
tional Bank, Fargo.
Member State Executive Council, M.
G. Pederson, cashier, First State Bank,

Northeast Group
President, John P. Lamb, cashier,
Lamb’s Bank of Michigan City.
Vice president, O. K. Anderson, cash­
ier, First State Bank, LaMoure.
Secretary-treasurer, C. P. Austinson,
cashier, Farmers State Bank, Leeds.
Member state nominating commit­
tee, Franklin Page, cashier, Bank of
Member State Executive Council,
Fred Hoghaug, vice president, Ramsey
County National Bank, Devils Lake.

Buys Bank Stock
M. G. Pederson, cashier of the First
State Bank of Hope, North Dakota, re­
cently purchased all the stock held by
the president, Henry Northridge and

at a directors’ meeting was elected
president of the bank, to succeed Mr.
Northridge, and now holds the official
titles of president and cashier.
John H. Irhy of Hope was elected to
serve as a member of the board of
directors, to fill the vacancy caused by
the resignation of Henry Northridge.

Sound Financially
Even though the cost of things farm­
ers and ranchers use are continuing
upward, North Dakota agriculture is
maintaining a sound financial position,
according to F. A. Irish, GNDA treas­
urer and chairman of the board at the
First National Bank and Trust Com­
pany of Fargo.
Mr. Irish, who is chairman of the
agricultural committee of the North
Dakota Bankers Association, was re­
cently given notice that North Dakota
has once again been awarded a 1,000
per cent rating in the American Bank­
ers Association for service rendered
agriculture. This honor has come to
the state annually for a dozen years.

Personnel Changes
Election of a new officer and the pro­
motion of three of the bank’s person­
nel to officers’ posts is announced by
William Stern, president of the Dakota
National Bank, Fargo, North Dakota.
Owen J. Boyle, associated with the
bank for 26 years and cashier since
January, 1942, was named as vice pres­
ident and director, to succeed the late
Ralph Butterwick.
Succeeding Mr. Boyle as cashier is
Anker Eriksmoen, a native of Leeds,
North Dakota. Mr. Eriksmoen, a grad­
uate of the American Institute of
Banking, was associated with the First
National Bank of Crosby, North Da­
kota, for several years and served as
cashier, leaving there in 1932.
Promoted to assistant cashiers are
M. Agnes Newman and Joel R. Egeberg, both graduates of the American
Institute of Banking.

To Cando
Election of William D. Johnson of
Minot as president of the First State
Bank of Cando, North Dakota, and as
a member of the bank’s board of direc­
tors has been announced.
Mr. Johnson, who formerly was on
the Cando bank’s official staff, has re­
turned to assume his new duties.

Minot Officer
Election of Russell Mousseau of
Havre, Montana, as vice president of
the Union National Bank at Minot,
North Dakota, was announced. He is
assuming his new duties at once, suc­
ceeding William D. Johnson who re­
cently resigned to become president of
the First State Bank of Cando.
Northwest ern Banker, December, 1948






R a t i o n a l B A N K
Northwest ern Banker. December, 1948
Federal Reserve Bank of St. Louis




Changes at the
United States National

ily since that time and three genera­
tions of the family have operated con­
tinuously and with honor this same
bank in Yutan where Fred Peters’
brother, H. H. Peters, is now presi­
At the same meeting the board pro­
moted Austin L. Vickery from assist­
ant vice president to vice president
in charge of the correspondent bank
division, where Mr. Peters, as assist­
ant vice president, will serve.

The board of directors of The United
States National Bank, Omaha, has an­
nounced the election of Fred Peters
to be assistant vice president. Mr.
Peters is well known in banking cir­
cles in Nebraska. He was appointed
director of banking for the state of
Nebraska by former Governor Dwight
Griswold and served in that capacity
until 1947 when he purchased control

were found which had been written
on the Allen State Bank which for­
merly occupied the same building.
Among these checks was one of spe­
cial historical interest.
It was written on the account of
the Allen Cornet Band, by W. F.
McDonald, manager, payable to Woods
and Linafelter in the amount of $2.65
and was paid November 1, 1904. Nota­
tion in the corner of the check says,
“Team to Emerson 10-4 $2.50. Feed
for Isreal’s team 5-24 15c.
Carl E. Anderson, one of the pres­
ent owners of the Anderson Pharmacy
in Allen, says he remembers the occa­
sion for which the check was drawn.
The Allen Cornet Band, in which he
played cornet, journeyed to Emerson,
18 miles southeast of Allen, to partici­
pate in a political rally at which Wm.
Jennings Bryan spoke in behalf of
his candidacy for President of the
United States.
Bank checks really tell their story
and make permanent records for all

Good Public Relations

V ic e President

A ssistant V ic e President

of the Bank of Ashland, which he re­
cently sold when it was then consoli­
dated with the Farmers and Mer­
chants Bank of Ashland.
Mr. Peters, 49, was born at Elba,
Nebraska, and has lived in the state
all of his life. He attended Fremont
High School and graduated from the
University of Nebraska College of
Law. For many years he was cashier
of the Bank of Yutan, which was or­
ganized by his grandfather in 1890.
This bank has been in the Peters fam-

Mr. Vickery entered the employ of
The United States National Bank in
1908 as a messenger. He was made
assistant cashier in 1923 and cashier
in 1940. He was elected assistant vice
president in 1946.

D id

you know

C ash

Millard M. Martin, cashier of the
Security State Bank of Allen, Nebras­
ka, says that while workmen were
remodeling their bank building re­
cently a quantity of old paid checks

t h a t y o u r B a n k e r ’s B la n k e t B o n d

p ro te ct


C ash

b y m a il o r e x p r e s s ?

L e tte r

Check Tells Story

P o lic y , w h ic h

L e tte r
A sk

fills th e

Federal Reserve Bank of St. Louis

w h ile

about our



An example of good bank public re­
lations is portrayed in the special
interest of Cozad, Nebraska, State
Bank takes in livestock promotion in
its community.
At the Dawson County Fair this past
fall the bank had a photographer take
colored pictures of each calf exhibited.
Later at a dinner for the winning
boys and girls the pictures were
shown on a large screen. Then later
the bank mailed the transparency to
each of the exhibitors, with the fol­
lowing letter:
“We are happy to present with our
compliments a small picture of the
calf which you exhibited at the County
“We cannot tell from the pictures
which of you took prizes, but we do
know that Dawson county got the job
done at the State Fair.
“ However, prize money or ribbons
are not the important part of the
project which you have completed.
The important thing is that you have
become better acquainted with live­
stock feeding.
“We hope that you will continue in
this work next year and if we can
be of any assistance to you in any
way we will appreciate you coming to
us personally with your problems.”

Scarborough & Company


Insurance Counselors




Northwest ern Banker, December, 1948



IS. K r o n e r

X a n t e ito í

X e b r a s h a H a n h o rs A s s o c ia tio n
More Than 1,000 Bankers and Wives
Attend 51st Annual Convention in Omaha
R. KENNER, president of the
Thayer County Bank at Hebron,
♦ was elected president of the Ne­
braska Bankers Association at the
group’s 51st annual convention at the
Hotel Fontenelle in Omaha last month.
Mr. Kenner succeeds J. O. Peck, presi­
dent of the Central National Bank of
Columbus. More than 1,000 people at­
tended the convention.
Newly elected vice president is W.
H. Pierce, president of the First Na­
tional Bank of Shelby and the First
National of Osceola. Austin L. Vickery, vice president of the United States
National Bank in Omaha, remains as
treasurer and Carl G. Swanson was
renamed secretary with headquarters
in Omaha.
Elected to three-year terms on the
executive council w e r e Burnham
Yates, vice president, First National
Bank, Lincoln, representing Lincoln;
A d o l p h Thuman, president, State
Bank of Trenton, representing Group
4, and John F. Davis, vice president,
First National of Omaha, representing
At the American Bankers Associa­
tion session, William N. Mitten presi­


dent, Stephens National Bank, Fre­
mont, and Glen T. Gibson, president,
Exchange Bank. Gibbon, were elected
to the executive council. Mr. Kenner
is the new member of the A.B.A. nomi­
nating committee and elected as alter­
nate was V. E. Warren, executive vice
president, Auburn State Bank, Au­

Vice Presidents
The four A.B.A. state vice presidents
elected were: National bank division,
A. J. Jorgenson, president, American
National of Sidney; savings and mort­
gage division. C. F. Witt, president,
South Omaha Savings Bank; State
bank division, O. W. Johnson, vice
president, Bank of Burwell, and trust
division, Howard Hadley, vice presi­
dent, Continental Bank of Lincoln.
Mr. Peck began the speaking part
of the program with his president’s
report in which he vigorously scored
the federal government for its attitude
in attacking the problem of inflation.
Mr. Peck said, “ Political expediency,
rather than good, sound economics,
has been the basic program for tack­
ling inflation.” He said the govern­
ment should take steps to seek correc­

tive remedies for the causes and not
wink at the symptoms. He stated that
additional controls are not the answer
for they deal with the effects of in­
flation and not the causes.
Mr. Peck made the suggestion “that
the Treasury build a substantial sur­
plus by a reduction in non-defense ex­
penditures and, if necessary, by an
increase in taxes, and use the proceeds
for debt retirement. Such a process
would reverse that which causes in­

No Big Changes
D. J. Needham, general counsel for
the A.B.A. in Washington, D. C., told
Nebraska bankers that he did not
think President Truman’s administra­
tion would make many changes in the
country’s national economic life that
would affect bankers. He forecast
housing loans and control of subse­
quent operations by the federal gov­
ernment. He predicted an increase in
taxes for everyone; predicted an at­
tempt by government to institute
price controls and broadened Social
Security and also predicted failure for
attempts to control commodity prices:

A t th e N eb ra sk a
A FE W OF THE 1,100 BA N K ERS and their wives who at­
tended the 51st annual convention o f the Nebraska Bankers
Association at Hotel Fontenelle in Omaha are pictured on the
opposite page. Reading from left to right in each photograph
they are:
1. Association officers— Treasurer Austin L. Vickery, vice
president United States National, Omaha; President J. R.
Kenner, president Thayer County Bank, Hebron; retiring Presi­
dent J. O. Peck, president Central National Bank, Columbus;
Vice President W. Howard Pierce, president First National
Banks in Osceola and Shelby, and Secretary Carl G. Swanson,
2. Howard L. Burdick, cashier Central National Bank, Co­
lumbus, and E. W. Rossiter, president Bank of Hartington.
3. John Changstrom, v ;ce president; W. B. Millard, Jr., senior
vice president; David F. Davis, vice president; Jack Rhodes,
assistant vice president, and James H. Moore, vice president,
all of Omaha National Bank, Omaha.
4. A banquet group— A t lower left is K. G. Caterson, L in ­
coln, seated beside his w ife, Mrs. Caterson (back to camera).
Others, reading left to right, around the table are: Mrs. C. A.
Masilko, whose husband (out o f picture at left) is cashier of
the Stock Yards National, Omaha; John McCumber, vice presi­
dent Stock Yards National; Mrs. McCumber, and Edwin Gard­
ner and J. T. Shewell, both vice presidents Farmers Bank,
Nebraska City.
5. Harry D. Miller, president First National Bank of Stan­
ton; Ernest Hanson, vice president First National of Wahoo,
and D. J. Needham, general counsel for American Bankers
Association, Washington, D. C.

Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

6. H. J. Bornholdt, vice president Commercial State Bank,
Wausa; A. G. Sam, president First National Bank of Sioux
City; J. F. McDermott, vice president First National o f Omaha;
Fred W. Thomas, president First National o f Omaha, and J. M.
Brower, president Fullerton National Bank, Fullerton.
7. Paul Hansen, vice president Live Stock National Bank of
Omaha, admiring the buffet luncheon setup in the Live Stock
8. John
City; Roy
Albert A.

E. Van Horne, cashier Farmers State Bank, Pawnee
Percival, cashier First State Bank, Scottsbluff, and
Held, executive vice president National Bank of

9. O. A. Riley, president Hastings National Bank, Hastings;
B. W. Harrington, vice president Franklin State Bank, Frank­
lin; Perry Slocum, executive vice president Franklin State
Bank, and O. W. Johnson, vice president Bank of Burwell.
10. Ernest Hultgren, First National Bank, Chicago; Tom
Cannon, district manager St. Paul Terminal Warehouse Com­
pany, Des Moines; Fred W. Trier, Ashwell and Company, Chi­
cago; Nevin Lee, vice president Bankers Trust Company, Des
Moines, and Frank Fuchs, vice president First National Bank
o f St. Louis.
11. David Coffman, vice president William H. Banks W are­
houses, Inc.; B. M. De Lay, assistant cashier The De Lay
National Bank, N orfolk, and Mrs. De Lay.
12. Part of the crowd of 1,000 served in the main ballroom
and mezzanine rooms at the annual banquet.
Federal Reserve Bank of St. Louis




Nebraska News

Seen a t th e N eb ra sk a fía a k ers Cnneentian
ONE GROUP o f pictures taken by the Northwestern Banker
at the Nebraska Bankers Association’s 51st annual convention
in Omaha. L eft to right in the above photographs are:
1. George Dunlap, First National Bank, Lincoln; J. M.
Pucelik, president Spencer State Bank, Spencer; H. J. Bornholdt, vice president Commercial State Bank, Wausa, and
George Barta, Spencer State Bank.
2. Louis Novak, cashier Bank of Brainard, and A. J. Jorgen­
son, president American National Bank, Sidney.
3. Austin L. Vickery, vice president United States National
Bank, Omaha; Glen G. Hampton, vice president Gothenburg
State Bank, Gothenburg; P. J. Ternus, cashier Farmers State
Bank, Humphrey; Fred Peters, assistant vice president United
States National Bank, Omaha, and Harlan D. Wells, vice presi­
dent First National Bank, Scottsbluff.
4. W aiting for dinner at the annual banquet are, reading

left to right, Mrs. Fuchs; Frank Fuchs, vice president First
National Bank, St. Louis; Mrs. Ray R. Ridge, whose husband
is senior vice president o f the Omaha National Bank, Omaha
(Mr. Ridge is seated at near end of table just out o f picture
at le ft ); Jack Frost, assistant cashier Chase National Bank,
New Y ork; Daniel J. Monen, vice president Omaha National
Bank; Mrs. Monen; Miss Loretta Sears, Omaha, and H. C.
Larson, cashier Citizens State Bank, Decatur.
5. Otto Kotouc, Sr., president Home State Bank, Humboldt;
Carl D. Ganz, vice president National Bank of Commerce, Lin­
coln, and H. A. Schneider, president Plattsmouth State Bank,
6. John R. Lauritzen, assistant vice president First National
Bank o f Omaha; Charles S. Stone, City National Bank, Hastings,
and George O. Unruh, president Mondamin Savings Bank, Mon­
damin, Iowa.

irst National
Bank oí Omaha


Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

Oldest National Bank. From Omaha West
Member Federal Deposit Insurance Corporation

Nebraska News


said legislation for socialized medicine
will be introduced and might possibly
pass; predicted an increase in mini­
mum wages to a level of about 60 to
65 cents an hour, and spiked any talk
of a big depression.
The final speaker on the first day’s
program was Major General Lewis A.
Pick, co-author of the Pick-Sloan proj­
ect for development of the Upper
Basin of the Missouri River.

Tax Session
One of the most interesting sessions
of the convention turned out to be the
“ early bird” breakfast meeting in the
Black Mirror Room at the Fontenelle.
More than 200 bankers heard Laurens
Williams, Omaha attorney, discuss
“Bank Reserves for Losses and the
Revenue Act of 1948,” going into the
many details of this recent legislation
which was instigated by E. W. Rossiter, president of the Bank of Hartington. A.B.A. Counsel Needham hailed
the “reserves for losses before taxes”
legislation as the biggest single ac­
complishment of banking for 1948.
After delivering his prepared talk, Mr.
Williams answefed a number of ques­
tions from Nebraska bankers. The in­
formation contained in his talk is of
such importance to bankers every­
where that the N o r t h w e s t e r n B a n k e r
will feature Mr. Williams’ remarks
next month in the big January, 1949,
Claude L. Benner, vice president of
the Continental American Life Insur­
ance Company in Wilmington, Dela­
ware, told the assembly that higher
interest rates were not in the offing
and that higher interest rates probably
are not coming immediately. Dr. Ben­
ner said another year also would un­
doubtedly take care of the bulk of
industrial expansion that has followed
World War II and this should ease
the money demand. He said interest
rates should be higher to offset the
loan demands now being made.
Former Nebraska Governor Dwight
Griswold gave a report on “A Nebras­
kan in Greece,” which contained ob­
servations made by Mr. Griswold
when he was head of an American
mission to Greece during the past
year. The purpose of the mission was
to supervise expenditures of money
and materials purchased and placed
on loan to the Greek government.
The convention site for 1949 will be
the Cornhusker Hotel in Lincoln on
October 11th and 12th.—The End.

Federal Reserve Bank of St. Louis

banks began paying out
Christmas savings to depositors

the middle of November.
The 9,269 Omaha Christmas Savings
Club members and the total of such
savings, more than $663,000, set alltime records. Eight of the nine Oma­
ha banks have Christmas Savings
The 1947 total was slightly more
than a half million dollars.
In 1940, when 11,000 persons had
Christmas savings accounts, the total
was only $400,000.
Nearly half the city’s total was paid
out by the United States National
Bank. Its $300,000 fund went to 3,500
depositors, a 10-year record. The sav­
ings also were being paid out at the
Omaha National, First National, Live
Stock National, Packers National and

Stock Yards National, the South
Omaha Savings and Douglas County

Not all of the money goes for Christ­
mas presents. Much of it is used to
meet taxes and insurance premiums
and a lot of it helps make installment
Some is used also to
start regular savings accounts.
Christmas finds O m a h a n s with
slightly less money in regular savings
accounts than a year ago, bankers
stated. The HCL has put a dent in
most savings. The total, however, is
up from the summer low, caused bv
the long packing house strike.
Ellsworth Moser, executive vice
president, United States National Bank
of Omaha, was one of the members of
the undefeated 1915 Nebraska Corn-

G. E. P orter

Chairman of the Board

Our detailed knowledge of the

J. A. Greenfield


problems of the live stock indus­

T. J. McCullough

try and the St. Joseph Stock Yards

Vice President
M. E. B lanchard


comes through 50 years of close
association with



L. J. Kom er

Assistant Cashier


H . H. Broadhead, Jr.

Assistant Cashier

I'irsl Ml. J oscp li
South St. Joseph, Mo.

Member Federal Deposit Insurance C orporation

Northwest ern Banker, December, 1948


Nebraska News

buskers football squad who got to­
gether recently at a hunting lodge
near Scottsbluff, Nebraska. At the
reunion they lived over again mem­
ories of the greatest of all the “ Stiehm
Rollers.” All played under Coach E.
O. (Jumbo) Stiehm on the ’15 team,
which overrode eight straight oppo­
nents, including Notre Dame, and
scored 282 points to their opponents’
John H. Cook, Scottsbluff packer,
was host at the duck hunting gettogether. Others present were Dr.
Ted Riddell, Scottsbluffs; H. H. (Tim)
Corey, president of the Hormel Pack­
ing Company, Austin, Minnesota, and
Mike Selzer, Scottsbluff soft drink
company official.

1941, served until 1946 because no AkSar-Ben coronation balls were held
during and immediately after World
War II. This was the longest “reign”
in Ak-Sar-Ben history, exceeding that

W. B. (Bob) Millard, senior vice
president of the Omaha National
Bank, has been elected president of
the Knights of Ak-Sar-Ben, Omaha’s
internationally-known civic organiza­
Mr. Millard, as Ak-Sar-Ben King in

W . B. M I L L A R D , JR.
E lected President o f A k-Sar-B en

9 n jß ittc a ln ----- *7Uè, G a n ti+ ie n ta l —


Friendly Correspondent Service

Specialized Bond Analysis

Q jntinental R ational


Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis

of Willard D. Hosford, during World
War L, by three years.
As president of Ak-Sar-Ben, Mr. Mil­
lard succeeds J. E. Davidson, man­
ager of the Omaha Public Power Dis­
trict, who had been president nine
years. Mr. Davidson will continue
as a member of the board of gover­
Mr. Millard has been vice president.
H. M. Bushnell, president of the
United States National Bank of Oma­
ha, was elected vice president. W. D.
Lane, new King of Ak-Sar-Ben, was
re-elected secretary-treasurer.
Mr. Bushnell also was re-elected,
with Robert H. Storz and Russell J.
Hopley, to a four-year term on the
board of governors.
Mr. Bushnell was re-elected presi­
dent of the Ak-Sar-Ben Bridge Asso­
ciation. He also serves on that
group’s executive committee.
From Sweden came a banker and a
manufacturer for a visit in Omaha re­
cently. They were Ollie Kallman, who
is associated with the foreign depart­
ment of a Stockholm bank, and Stular
Werner, who operates a wood-process­
ing firm, in Stockholm.
Both serve on the Y.M.C.A. board
of trustees and came to America as
official representatives of the Y in
Dale Clark, president of the Omaha
National Bank, and Carl A. Swanson,
head of the food concern bearing his
name, entertained the visitors. Mr.
Swanson recently returned from a
trip to Sweden.
Miss Catherine Ann Coad, only
daughter of Mr. and Mrs. Arthur I a
Coad, was crowned queen of Ak-SarBen at the 1948 coronation ball in
The queen’s father is president of
the Packers National Bank of Omaha.
Serving as a ringbearer to Ak-SarBen’s queen at the coronation ball was
Carol Davis, daughter of Mr. and Mrs.
John F. Davis. Her father is vice
president of the First National Bank
of Omaha.


No Other Bank Gives You

Than the







Nebraska News
Her grandfather is T. L. Davis,
chairman of the board of the First
National. Her great grandfather, the
late F. H. Davis, also was president of
the Pfirst National many years.
Richard H. Mallory, vice president,
United States National Bank of Oma­
ha, has been named head of the 1948
Christmas Seal campaign in Omaha
for the Nebraska Tuberculosis Asso­
ciation. Omaha’s quota is $46,000.
The campaign opened November
22nd, when 66,000 letters were mailed
to Omaha and Douglas county homes.
.1. F. McDermott, vice president of
the First National Bank of Omaha
and a Knight of St. Gregory, presided
at a dinner in Omaha recently, when
an Omaha physician, a non-Catholic,
Dr. Adolph Sachs, was made Knight
Commander with the Star of the Order
of St. Gregory the Great, by decree
of Pope Pious XII. It is one of the
highest awards of the Roman Catholic
Church. It signifies “exceptional con­
tribution toward the welfare of man.”

The memory of the late Victor B.
Caldwell, father of Victor B. Caldwell,
Jr., vice president of the United States
National Bank of Omaha, was honored
at the recent fiftieth anniversary meet­
ing of the Omaha Association of Credit
Men at Hotel Paxton.
The home of the late Alvin E. John­
of the Live
Stock National Bank of Omaha, has
been sold by his widow to Russell
C. Anderson of Omaha. The residence
is at 101 South Fifty-fourth Street.
The sale involved $18,500.
son, former president

Northwestern Bell Telephone Com­
pany directors, meeting in Omaha,

voted to shorten from 45 to 31 years
the term of the $60,000,000 debenture
bond issue which the firm was to sell
November 16th.
The change means that the deben­
ture now will mature in 1979 instead
of 1993. The bids were to be taken

in New York. The United States Na­
tional Bank of Omaha has been desig­
nated as trustee.
Mrs .Gould Dietz, the former Mrs.
Luther Kountze, died recently in
Santa Barbara, California, where she
had gone from her Omaha home to
visit a daughter. She was the former
Alice Andreesen, whose father estab­
lished a large wholesale business in
Omaha in the early days.


Capital Increased
An increase of $500,000 in the capital
stock of the Live Stock National Bank
of Omaha, recently authorized by its
board of directors, was approved at a
special stockholders’ meeting, Henry
C. Karpf, president, announced.
The increase was effected by declar-

Representative Howard Buffett of
Nebraska, Omaha investment banker
before he went to Washington, was
one of those defeated at the general
election in one of the many “upsets.”
Mr. Buffett, a Republican, was de­
feated after a neck-and-neck race with
Democrat Eugene O’Sullivan, Omaha
lawyer. Mr. Buffett served the Second
Congressional District. He plans to
return to his Omaha home after his
term expires.
Li. C. McVea, assistant cashier, Oma­
ha National Bank, spent a good part
of his recent vacation in a telephone
He is chairman of the trips which
the Omaha Chamber of Commerce
Tribe of Yessir makes to neighboring
towns, and he was on the phone al­
most constantly urging business men
to make the second trip of the season
to David City, Nebraska.
The Northern Natural Gas Com­
pany, with headquarters in Omaha,

has filed with the Securities and Ex­
change Commission a registration
statement covering proposed sale of
$6,000,000 of serial debentures dated
November 1, 1948. They will mature
serially from 1966 through 1969.
The transaction contemplated com­
petitive bidding by underwriters and
resale to the public.
Net proceeds will be used to replen­
ish working capital and for additional
construction in 1949 to increase gas
transmission capacity.
Northern Natural plans later to is­
sue and sell additional common stock.

H E N R Y C. K A R P F
A nnounces Stock Increase

ation of a $500,000 stock dividend.
This action, Mr. Karpf said, is in line
with the policy of the bank’s directors
to provide an adequate capital ratio
to the bank’s substantial growth. The
capital structure now includes com­
mon stock of $1,000,000, surplus of
$1,000,000, and undivided profits and
reserves exceeding $800,000.

K. G. Harvey, president of the Doug­
las County Bank, has announced the
promotion of Henry R. Roose from
cashier to vice president and cashier.
Mr. Roose has been connected with
the Douglas County Bank since July
1, 1942. His first position in the bank
was that of auditor. He was advanced

*MORE personal service — *MORE types of service — *MORE
friendliness —

*MORE people who are interested in you.


G. L A C Y


Federal Reserve Bank of St. Louis

A S S T V IC E P R E S .

A S S T V IC E P R E S .


M IL T O N T O O T L E , JR.
A S S T . C A S H IE R

M em b er F ed era l D e p o sit
Insu ra nce C orporation

Northwest ern Banker, Decem ber, 1948


Nebraska News

to assistant cashier and then cashier,
which position he has held since De­
cember of 1944. He is also a member
of the board of directors.
Prior to his connection with the
Douglas County Bank, Mr. Roose was
in the employ of Mr. Harvey for over
four years in the automobile finance
business. He is a native of Omaha,
and graduated from North High
School in 1934.

Becomes Cashier
Dallas Wetzel, resident of Norfolk
the past thirty-two years, recently as­
sumed his duties as cashier of the
Nebraska State Bank at South Sioux
City, Nebraska.
Mr. Wetzel has had twenty-two
years of experience in the banking
business. He started his career as
a teller in the old Nebraska State
Bank at Norfolk and later was pro­
moted to cashier. He served twelve
years in a bank and ten years in bank
liquidation work.

Sixty Years
The Citizens National Bank of Wisner, Nebraska, observed its 60th anni­
versary this year.
The bank was organized October 17,
1888, as the Citizens State Bank, with
F. B. Van Dorn, Sylvester Emley,
William Stuefer, J. H. Emley and
J. W. Kinzel as incorporators and the
first board of directors. F. B. Van
Dorn was elected president; J. W. Kin­
zel, vice president, and J. H. Emley,
cashier. The authorized capital was
$60,000, but when the bank opened
for business some weeks later, the
actual paid in capital was $9,026.84. At
the close of the books on the opening

Jh s L

S o a A o tb L

day deposits were $727.80 and the loans
were $2,373.
The first correspondent bank, the
Omaha National Bank, and another
early correspondent, then known as
the Union Stock Yards National Bank
of South Omaha, are still serving the
Citizens National Bank in the same
capacity, the latter under the name
of Stock Yards National Bank. Other
early correspondent banks, no longer
in existence u n d e r their original
names, were Western National Bank,
the Merchants National Bank, Oma­
ha, and Commercial National Bank.

First National Elections
The First National Bank of Lincoln,
Nebraska, has announced the election
of Clifford G. Weston and Lyle F.
Stoneman as vice presidents of the
bank. Both previously held the title
of assistant vice president and have

To Remodel Building
The Nebraska State Bank, South
Sioux City, Nebraska, will enlarge its
present building and install new facili­
ties for the accommodation of its
customers, Vice President H. L. Brune
has announced.
“The bank’s present quarters will
be completely remodeled and inte­
grated with new construction on the
now vacant proper-ty which was pur­
chased for that purpose in 1945,” Mr.
Brune said.
Many new facilities will be installed
for the accommodation of the bank’s
customers. A new and larger safety
deposit vault will be installed with
more safety boxes, which have been
scarce for some time. More teller
windows will be added.
Mr. Brune said the front of the
building will be faced with Indiana
Construction will be started, he
added, just as soon as detailed work-'
ing drawings, which are being pre­
pared, can be completed.


G. W E S T O N

been associated with the bank
Mr. Weston joined the staff at
First National in January of 1920,
subsequently worked in most of


^ h c s d in q A .

with the wish that 1949 will be a Prosperous
and Happy Year for our many friends.
Des Moines, Iowa


St. Louis, Missouri

Angola, Indiana


Grand Rapids, Mich.

Madison, Wisconsin
Fayetteville, Arkansas

L Y L E F. S T O N E M A N

W eslaco, Texas

( INC. ) *

1 0 » SO L A S A L L E ST

C H I C A C O . ILL.

gititi IVoAeltvuie Receipt*
B tU dtfiny. THE GAP Betw een


Northwest ern Banker, December, 1948
Federal Reserve Bank of St. Louis

departments in the bank. In 1940 he
was placed in charge of the bank’s
operating division and personnel and
functioned in that capacity until June
of this year when he became super­
visor of the activities in the bank’s
newly established lower lobby, includ­
ing the savings, installment loan de­
partment and the safe deposit vaults.

Nebraska News
Long active in American Institute
of Banking work, Mr. Weston has
been an associate councilman of that
organization for the past two years.
Mr. Stoneman first entered the em­
ploy of the bank in 1936. In 1941 he
joined the examining staff of the Fed­
eral Deposit Insurance Corporation
and assisted in examining banks in
Nebraska and elsewhere in the 10th
District until 1944. At that time he
rejoined the staff of the First National
Bank of Lincoln as an assistant cash­
ier in the correspondent banking divi­
sion, which department he now heads.

Live Stock Promotions
Appointment of Armand S. Chaves
to the newly created office of comp­
troller of Live Stock National Bank
of Omaha has been announced by
H. C. Karpf, president. According to
Mr. Karpf, establishment of the new

Mr. Souba has been with the Live
Stock National Bank since 1935. He
is a member of the Junior Chamber
of Commerce, vice president of the
Omaha-Council Bluffs Conference of
Bank Auditors and Comptrollers, and
president of the local chapter of Amer­
ican Institute of Banking.

New Director
At a recent meeting of the board
of directors of the First National
Bank, O’Neill, Nebraska, Wm. J. Froelich was elected a director.
Due to the death of the late Joe
Mann, a vacancy existed in the mem­
bership of the board and Mr. Froelich
was selected to fill the position.

Cashier at Scotia
Clarence H. Sixel has resigned his
position as cashier of the Farmers
State Bank, Plymouth, Nebraska, and
has purchased an interest in the State


Bank of Scotia, where he becomes
Mr. Sixel came to Plymouth in 1935
to succeed B. M. Hanson. He had
previously worked in the State Bank
of Harbine. He was assistant cashier
until in 1945 when he was promoted
to cashier.
Mr. Sixel is succeeded in the Farm­
ers State by Charles Backer of Daykin who becomes cashier. Mr. Backer
has been assistant cashier of the Jef­
ferson County Bank at Daykin since
December 1, 1945. He came to the
bank as a teller from Alexandria.

The board of directors of the Irving
Trust Company, New York, has de­
clared a quarterly dividend of 20 cents
per share on the capital stock of the
company, par $10, payable January 1,
1949, to stockholders of record at the
close of business December 14, 1948.

— one of the 357 different in­
dustries in the St. Louis area.
This makes St. Louis industry
the most diversified o f a n y city
in the nation . . . helps make
centrally located St. Louis one
o f the m ost

e c o n o m ic a lly

stable places to do business in
the United States.

A. S. C H A V E S
R eceive

L. E. S O U B A
Prom otion s

post was necessitated by the growth
of the bank in recent years.
Mr. Chaves has been auditor of this
bank for the past two years. Prior
to that he was for ten years assistant
national bank examiner in the office
of comptroller of the currency. He
resigned that post in order to become
associated with the Live Stock Na­
tional Bank.
He will be succeeded as auditor by
Lester E. Souba, former assistant au­
ditor. Mr. Souba and Mr. Chaves have
won national and international recog­
nition for the ASC-LES accrual sys­
tem for installment discounted loans
which they originally designed as an
accommodation for correspondents of
Live Stock National Bank. Chaves
is also currently active with the Na­
tional Association of Bank Auditors
and Comptrollers on a committee
whose function is to handle the prob­
lems of small banks.
Federal Reserve Bank of St. Louis

Our experience in serving so many
different kinds of industry over a period
of 90 years proves especially valuable
to our correspondents.
Whatever your problems, you’ll find our

complete correspondent service of real




W e invite you to join our many corre­
spondents who find their association
with "T h e First in St. Louis” (the
largest bank in the area) both pleasant
and profitable.
Member Federal Deposit Insurance Corporation


Northwest ern Banker, December, 1948


. .. HAS A 2 4 - H O U R S C H E D U L E T O O !
Round the world in one day . . . that's Santa's
schedule. It calls for speed, accu racy and no
delays. But then, Santa only has to meet his
schedule once a year. At Live Stock National
Bank we're on a 24-hour schedule all year long.
Our schedule also calls for speed, accuracy
and no delay.
And keeping that schedule has m ade Live
Stock National the preference of hundreds of
correspondent banks when it comes to rapid
clearance on collection items.

Rather than bestow gifts at Christmastime, Live
Stock National gives Service . . . day and
night . . . the year round. Our ''timetables''
will prove the average transit item pauses little
over a couple of hours before speeding on its
w ay. Service like this can save as much as a
day's time on transactions . . . build more
profits and better customer relations for you.
RESOLVE to start the new year right! Write
for your supply of special 24-HOUR TRANSIT

F ederal

Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

R eserve


F ederal

2 4 ■H O V R
D e p o s it

In su ra n ce


C o r p o r a tio n

Huygens is cashier and Darrel Gavin
is assistant cashier. Marianne Paul­
sen has been employed as bookkeeper.
Directors of the new bank are: Ar­
nold L. Meier, Anders W. Mathers,
Walter J. Kiehl. James Brady and J.
H. Pfautz.
Capital of the new institution is $75,000, with $25,000 in surplus and un­
divided profits.

Increases Capital
Charles S. McKinstry


Charles S. McKinstry, 51, president
of the National Bank of Waterloo.
Iowa, died in a Waterloo hospital late
last month after a week’s illness re­
sulting from a heart attack.
Mr. McKinstry became cashier of
the National Bank of Waterloo at the


M cK i n

ch arles


time of its organization in 1933, was
elected vice president in 1934 and
served as president since January,
1946. He had previously been with
the old Commercial National Bank in
Waterloo from 1917 to 1933, with the
exception of a year and a half spent
in the service during World War I.
He was also a director of the Iowa
Savings Bank at Dike.
Mr. McKinstry was president of the
Waterloo school hoard since 1942, and
prior to this time had served 13 con­
secutive terms as president of the
east side school board.
For a number of years Mr. McKin­
stry was active in Iowa Bankers Asso­

ciation affairs and through this chan­
nel made hundreds of friends in Iowa
and throughout the middlewest. He
was chairman of the committee on
service for war veterans, had served
as vice president for Iowa of the
American Bankers Association in 194546, and was chairman of Group 7 of
the Iowa Association from 1943 to
In another civic post, Mr. McKinstry
was elected to the board of the Water­
loo Chamber of Commerce in Febru­
ary, 1945, for a three-year term, his
second term as a director. He was
also treasurer from 1945 until this
year. At the time of his death he was
chairman of the finance committee of
the mayor’s Citizens Action Commit­
tee and was on the Black Hawk coun­
ty War Bond committee during World
War IT.
He was appointed the first com­
manding officer of Waterloo’s Com­
pany M of the Iowa State Guard, then
in June was promoted to the rank of
major and assigned to the Iowa gen­
eral staff. He completed his Guard
service as a lieutenant colonel.
Charles McKinstry was born February 18, 1897, at Rowan, Iowa; was
graduated from Iowa State Teachers
College at Cedar Falls in 1916. He
is survived by his widow; three sons,
Richard E., Waterloo; Robert C. and
James E., the latter two both juniors
in state universities; one brother, J.
Albert, Fort Dodge, and one grandson.

The Lake City State Bank, Lake
City, Iowa, recently increased its capi­
tal stock from $25,000 to $50,000 by
declaration of a stock dividend. Sur­
plus now is $25,000. according to Pres­
ident Walter Jacobs.

Income Tax Schools
The fourth annual series of “Federal
Income Tax Schools” sponsored by
the Iowa Bankers Association was
held last month. The three meeting
places were Cedar Rapids, Fort Dodge
and Sioux City.
The main part of each program was
under the direction of Frank J. Blaser,
assistant chief of the income tax divi­
sion in the office of the collector of
internal revenue, Des Moines. Mr.
Blaser’s discussions were contained in
five separate subjects under considera­
tion and a number of questions from
the floor at each meeting were an­
swered. The programs were carried
through a morning and afternoon pe­
All bankers, farmers, business men,
lawyers, CPA’s and any taxpayers
wishing to attend were invited to the
meetings, which wrere free of charge.

Open Tipton Bank
The First National Bank of Tipton
was opened for business last month
with a big-scale opening day celebra­
tion. Hundreds of visitors from Tipton and surrounding area and a num­
ber of out of town bankers inspected
the new quarters.
President of the new bank is Roger
M. Bolton. James C. France and G. E.
Gruenwald are vice presidents, J. M.

Did you know that this company pioneered in putting
Bank Insurance on a scientific basis and forcing

S. A. Vail
A. Vail, 84, president and chair­
man of the board of directors of the
Gibson Savings Bank, Gibson, Iowa,
passed away at his home in Gibson,
Mr. Vail was one of the original
directors when the bank was organ­
ized in 1912. In 1921 he was elected
as president and chairman of the
board and served in that capacity until
his death. His advice and counsel
will be greatly missed by the board
and the entire bank staff. He had
made hundreds of friends during his
many years of bank service.
He is survived by his wife, two sons,
seven daughters and many grandchil­
dren and great grandchildren.
His son, Edward G. Vail, is also a
member of the board of directors.

Scarborough & Company

rate reductions? Ask us about our counseling service.
Insurance Counselors
Federal Reserve Bank of St. Louis




Northwest ern Banker, December, 1948


AT THE IOWA CONVENTION, reading from le ft to right:
1. John Anton and John Grier, both vice presidents o f the
First National Bank, Chicago.
2. J. V. Keppler, cashier First National Bank, Dubuque,
vice president and treasurer o f the Iow a Bankers Association;
Harry W. Schaller, president Citizens First National Bank,
Storm Lake, and new president o f the Iowa Association; and
W. W. Blasier, president Farmers State Bank, Jesup, immediate
past president o f the Association.
3. Frank Warner, secretary Iowa Bankers Association;
W . W. Steele, farm manager Steele State Bank, Cherokee; Louis
Bromfield, author and farmer, Lucas, Ohio; and R. E. Tool,
executive vice president First National Bank, LeMars.

Purchase Ruthven Bank
V. O. Stafford, Storm Lake, for many
years president and principal owner
of the Ruthven State Bank of Ruth­
ven, Iowa, has sold majority stock of
the bank to Mr. and Mrs. John B.
Keeline, Cherokee.
Mr. Keeline will succeed Mr. Staf­
ford as president of the bank, of which
both Mr. and Mrs. Keeline will be
directors. The rest of the personnel
will remain unchanged.
Mr. Keeline is president of the Cen­
tral Trust & Savings Bank of Chero­
kee. He will give supervisory atten­
tion to the Ruthven State Bank. The
sale was negotiated by the Charles E.
Walters Company of Omaha.

Elect New Officers
L. H. Buenneke was elected presi­
dent of the Maynard Savings Bank,
Maynard, Iowa, at a recent meeting of
directors. Mr. Buenneke formerly was
executive vice president.
Northwestern Banker. December, 1948
Federal Reserve Bank of St. Louis

fro m fo rm

P ic tu r es

4. Leonard Moeller, executive state agent St. Paul Fire &
Marine Insurance Company, St. Paul; and Ken Martin, assist­
ant vice president First National Bank, Minneapolis.
5. Diane Horabin, Iowa City; Ben Summerwill, president
Iow a State Bank & Trust Company, Iowa City; June Schmidt,
daughter of W. F. Schmidt, vice president of Iowa State Bank
in Iowa City; and Mrs. Summerwill. The girls are members
of Iowa University Scottish Highlanders band.
6. The four hosts at the American National Bank, Chicago,
breakfast at the Convention— Charles Kuning, Paul Decker,
and Bill Whitman, vice presidents, and Walter Armstrong,
assistant cashier.

A. L. Evans was elected vice presi­
dent and Paul A. Harrison was re­
elected cashier.

W. H. Bischel Retires
Upon completion last month of his
50th year in the banking business,
W. H. Bischel retired as president of
the First Trust and Savings Bank of
Aurelia, Iowa. He is succeeded in the
presidency by H. H. Deyloff who has
been with the First Trust and Savings
for 25 years, more recently as cashier.
Mr. Deyloff’s position as cashier is
being filled by C. M. Johnson, a 10year veteran with the bank who
moves up from the assistant cashier’s
The Cherokee County Bankers As­
sociation honored Mr. Bischel at a
dinner in observance of his golden
anniversary in banking. O. J. Strampe,
cashier of the Farmers State Bank at
Marcus, presided and Ralph R. Brubacher, president of the Toy National
of Sioux City, spoke after the dinner.

New County Officers
Jay W. Hemphill, assistant cashier,
Farmers State Bank, Yale, Iowa, was
elected president of the Adair-Guthrie
Counties Bankers Association at a
meeting in Greenfield last month. He
succeeds Jay E. Howe, vice president,
Adair County Bank, Greenfield.
J. I. Vandevanter, assistant cashier,
Guthrie County State Bank, Guthrie
Center, is the new vice president and
Jack Bosold, Casey, is secretary-treas­

Moves Into Bedford
William G. Young has been elected
cashier of the State Savings Bank at
Bedford, Iowa. Harold V. Dowell,
manager of the office at Gravity, has
been transferred to Clearfield where
Mr. Young was manager. John E.
Dille, formerly manager of the Mor­
avia office for the Iowa Trust and
Savings Bank of Centerville, is the
new Gravity office manager.


T his M oney
Federal Reserve Bank of St. Louis

More than three-quarters of

ask their commission men

a century’s experience has

to route their money through

taught us to appreciate the

this Bank, the advice of credit

value of speed in the trans­

goes to you on the day of

mission of proceeds from

receipt. The Stock Yards

the sale of live stock in Chi­

post office is just across

cago. When your customers

the street and no time is lost.

We will be pleased to send you in­
struction cards to give your shippers.


'A a / w t i a f



18 6 8

M em ber Federal Deposit Insurance Corporation

N orthw estern Banker, December, 1948

M itre P ic tu r e s fn u n th e Mturu tim ren tio n
AT THE IOWA CONVENTION— From left to right:
1. C. C. Ecklund, vice president Poweshiek County Savings
Bank, Brooklyn; C. W. Fowler, president of Poweshiek County
Savings; and Alden S. Bagnall, vice president Live Stock Na­
tional Bank, Chicago.
2. Frank G-. Ross, vice president, and Hugh R. Kirkpatrick,
both of the Chase National Bank, New York.
3. Don Harper, assistant vice president First Wisconsin
National Bank, Milwaukee; and Charles McKinstry, president
The National Bank, Waterloo, standing by the IB A table
decoration for the Convention annual banquet.

Boost Capital $25,000
The Citizens State Bank, Wyoming,
Iowa, increased capital stock from
$25,000 to $50,000 by payment of a
stock dividend last month.

L. J. Olney
L. J. Olney, vice president and cash­
ier of the Citizens State Bank at Ol­
ney, Iowa, died suddenly at his home
last month. Mr. Olney apparently had
been in good health and death was
pronounced as due to a heart attack.

Vote Dividend
Directors of Northwest Bank &
Trust Company, Davenport, Iowa,
have declared the semi-annual divi­
dend of $2 a share on the capital stock
of $100,000.
The disbursement will be payable
January 1st to stockholders of record
of December 31st.

Move Into New Building
The Farmers and Merchants Sav­
Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

4. Charles Rieger, vice president Marquette National Bank,
Minneapolis; and Verne Koons, president First State Bank,
Britt, Iowa.
5. Frank Shonka, Ernest Tanner, John Lauritzen, assistant
vice president, and Carl Bloom, assistant cashier, all o f the
First National Bank, Omaha; Mrs. C. M. Wegman and C. M.
Wegman, FDIC, Atlantic, Iowa.
6. James Fletcher, Iowa manager, and David Coffman, vice
president, Chicago, both o f the William H. Bank Warehouses,

ings Bank, Lone Tree, Iowa, is now
doing business in its new building,
which is completed except for the
marble front.
The bank will hold its grand open­
ing as soon as the marble front is
put on.

William M. Pyper
Funeral services for William M. Py­
per, 88, retired Council Bluffs, Iowa,
banker, were held last month.
He joined the Council Bluffs Savings
Bank as a clerk in 1882, and remained
there until 1933, when he retired as
cashier and director. He was a direc­
tor of the bank until his death.

Sioux City Meeting
Milton S. Olson, Des Moines, presi­
dent of the Iowa Mortgage Bankers
Association, addressed members of the
Sioux City Mortgage Bankers Asso­
ciation last month.
Mr. Olson said the organization’s
state convention will be held Febru­
ary 23rd and 24th in Des Moines.

M. C. Eidsmoe, president of the
Woodbury County Savings Bank and
president of the Sioux City Associa­
tion, presided.

In Chamber Post
George Snider, teller at the West
Des Moines State Bank, will succeed
Garry Lenhart as secretary of the
West Des Moines Chamber of Com­
merce, President John McLaren an­
nounced last month.

New Assistant Cashier
Robert Grabinski, Grundy County.
Iowa, auditor since January 1, 1947,
has accepted a position as assistant
cashier in the Farmers Savings Bank
at Grundy Center Iowa, according to
I. T. Parkhurst, vice president.

A. R. Laudi
A. R. Laudi, 67, who was forced to
resign because of ill health last June
as cashier of the Chatsworth Savings
Bank, Chatsworth, Iowa, died last


IN 1948


Federal Reserve Bank of St. Louis


Northwest ern Banker, December, 1948


Iowa News

month at his home. Mr. Laudi had
been ill since February. He had
served as cashier of the bank for
eight years, and had been in bank
work in Iowa and Nebraska for 45

Announce New Directors
The Federal Home Loan Bank board
last month announced the following
newly-elected directors of the Fed­
eral Home Loan Bank of Des Moines
(serving Iowa, Minnesota, Missouri,
North and South Dakota):
William Graham, secretary, First
Federal Savings and Loan Association,
Brainerd, Minnesota; John W. Ballard,

executive vice president, Safety Fed­
eral Savings and Loan Association,
Kansas City, Missouri; W. L. Sloan,
president, First Federal Savings and
Loan Association, Sioux City, Iowa
(re-elected); E. A. Kamp, president,
Washington Federal Savings and Loan
Association, St. Louis; Stanton R. Dahlen, secretary, First Federal Savings
and Loan Association, Thief River
Falls, Minnesota.

Moves to Granger
Herman Harvey, assistant cashier of
the First National Bank, Perry, Iowa,
was appointed cashier last month of
the Granger office of the Brenton State

Bank of Dallas Center. He replaces
Laurel Schulte who had resigned ear­
lier. The First National of Perry is
also a Brenton Bank.

Farm Representative
James B. Bullock has been ap­
pointed head of the agricultural de­
partment of the Farmers Trust and
Savings Bank at Spencer, Iowa. He
is an experienced farmer and well ac­
quainted in Clay county.

Host to Feeders
The Council Bluffs Savings Bank,
Council Bluffs, Iowa, was host last
month to 265 farmer feeders at the
annual Feeders Dinner sponsored by
the bank. B. A. Gronstal, president,
presided at the dinner meeting, pre­
senting 4-H Club livestock display win­
ners and the speakers of the evening.

Buy Wellman Bank
S. P. Sandy, president of the Well­
man Savings Bank, Wellman, Iowa,
for the past two and one-half years,
has sold his interest in the bank to
C. A. Perlenfein of Harvard, Nebraska,
and Leonard Seiko of Franklin, Ne­
Mr. Perlenfein is in charge as presi­
dent and Mr. Seiko is executive vice
president. W. L. Phillips will remain
in the bank as cashier.

f o r

N 0 * t H E A S « * N « O W A

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prompt, o.




Banker, December, 1948
Digitized forNorthwestern
Federal Reserve Bank of St. Louis

Reorganize O'Brien Bankers
O’Brien county bankers reorganized
their county association at a meeting
held in Sanborn, Iowa, recently, fol­
lowing several years of inactivity.
Officers elected were: R. F. Green,
vice president, Security State Bank of
Sutherland, president; F. J. Pylman,
assistant cashier, Sheldon National
Bank of Sheldon, vice president;
Ralph Hinman, president, First Na­
tional Bank of Primghar, treasurer,
and John Craven, president, Sanborn
Savings Bank of Sanborn, secretary.

John M. Wormley
John M. Wormley, 84, former state
representative and mayor of Kingsley,
Iowa, died last month.
Mr. Wormley, retired attorney and
resident of Kingsley for 59 years, died
in Sioux City of coronary thrombosis.
He was a stockholder in the Farmers
Savings Bank, Pierson, Iowa, since
1908 and was a member of the board
of directors for several years before
In 1917 Mr. Wormley was elected to
the state legislature and served two
Surviving are his wife, three daugh­
ters and five sons.

Iowa N e w s

Hold Quarterly Meeting
Members of the Washington-Louisa
County Bankers Association gathered
at Kalona, Iowa, last month for the
quarterly meeting. Turkey dinner
was served to 132 guests, after which
a program of musical entertainment
was provided, followed by an address
by the pastor of the Trinity Episcopal
Church at Iowa City.

Buys Missouri Bank
The Exchange Bank of Fairfax, Mis­
souri, has been purchased by Ben L.
Johnson of Iowa Falls, Iowa, who
with his family will establish his home
in Fairfax. Born and reared near
Shenandoah, Iowa, the Fairfax terri­
tory, in the adjoining county south­
ward, is not strange to Mr. Johnson.
Mr. Johnson started his banking
experience in Shenandoah and for
some years was cashier of the Iowa
Falls State Bank of Iowa Falls. For
the past few years he has been en­
gaged in the bulk oil business, but sold
out recently to return to banking.
The Exchange Bank of Fairfax has
capital of $25,000, surplus of $25,000,
undivided profits of $30,000 and depos­
its of $1,600,000. All contracting par­
ties were represented by Charles E.
Walters Company of Omaha.

Annual Turkey Shoot
Lester Marchant, teller, and Everett
M. Griffith, vice president of the IowaDes Moines National B a n k , Des
Moines, tied for first place last month
in the bank’s annual turkey trapshoot
at the Mrs. E. T. Meredith farm, hit­
ting 25 straight shots. Frances Hol­
comb and Mrs. Marchant topped wom­
en shooters.
The annual affair attracted more
than 215 officers and employes and
their families. A noon picnic fol­
lowed the morning’s firing program.

Moines, was honored as a new mem­
ber of the Bankers Trust 25-Year Club
by President James W. Hubbell at the
bank’s Christmas party December
14th. Mr. Hubbell presented Mr. Elli­
son with a wristwatch commemorat­
ing the occasion.
All officers and employes were
guests of the bank management at the
annual holiday party at the Fort Des
Moines Hotel. Following the banquet
bingo and other festivities were held.
Mr. Hubbell also announced the re­
tirement of William Edenburn, a mem­
ber of the credit department.


FOR 1949?
(Continued from page 16)

as reflected in the bond market since
November 2nd. I feel certain that
with the large domestic and foreign
load of obligations this country must
service and discharge, business mo­
mentum will continue and be sus­
tained. Tax money must continue to
flow in, and production in large vol­
ume maintained.
“Despite the shadow of higher tax­
es, business should continue good for
a long time. A program of thrift,

for all of your
Drovers specialized facilities
and trained staff do speed col­
lections. Drafts receive special
handling in every part of Chicago
. . . Remitting livestock proceeds
is geared to save time . . . often a
full day. The Drovers National
Bank is a regular member of the
Chicago Clearing House.
We invite you to use Drovers Service fo r all yo u r Chicago item s
D l 2 J'era N a t i ,

Elect Finance Officers
Thomas L. Wood of the Stern Fi­
nance Company, Des Moines, was
elected president of the Iowa Asso­
ciation of Finance Companies, to suc­
ceed W. H. Owen, Des Moines.
Elmer L. Burgeson of the O’Dea
Finance Company, Des Moines, was
elected vice president, succeeding L.
A. Weinstock, Des Moines, and Doug­
las Lovett, Des Moines, was named
secretary-treasurer, to succeed G. W.
St. Clair, Vinton. Mr. Lovett is man­
ager of the Des Moines office of the
Interstate Finance Corporation.

Honored at Party
William Ellison, vice president of
the Bankers Trust Company, Des
Federal Reserve Bank of St. Louis



Y A R D S ,


Members, Federal Deposit Insurance Corporation
Northwest ern Banker, December, 1948


Iowa Nev/s

economy, and budgeting is essential
for government, business, and individ­
uals alike, and should be adopted. It
will go a long way toward cushioning
the shock of the much discussed de­
pression anticipated somewhere in the
not too distant future. After all, what
goes up must come down sooner or

President, Live Stock N ational Bank
Om aha, N ebraska

“ Much will depend on the 81st Con­
gress. At this time I feel there is a
definite slowing down of business gen­
erally, probably a large percentage of
it caused by fear. It would seem that
with 60 million people gainfully em­
ployed and with the enormous crop
which this country has .produced this
year, which is the creation of new
wealth, also with support prices, there
should not be too much to fear for at
least the first half of 1949.”

President, The C ity N ational Bank

“Assuming that the high level of
business activity, which we are ex­
periencing in recent years, is partially
supported by inflationary forces, it
would seem that we may experience a
declining trend in all or part of 1949.
“ ‘Inflationary binges’ tend to burn
themselves out if not refueled. It ap­
pearing that the highest flames of our
war inflation are now passing, our
business curve will likely decline con­
siderably before our ‘economic man­
agers’ can restore the fire again to

high proportions, through increased
government spending.
“America is a big and potent coun­
try, and like a great freight locomo­
tive, gathers momentum slowly; there­
fore, if we are in a down curve, many
months may be required in accom­
plishing a reversal.
“Business will undoubtedly be fairly
good in 1949, but business people are
never quite happy in a ‘down market,’
even though they are mindful of the
need for more sober levels.”

President, The Live Stock N ational
Sioux C ity


“With reference to my views on the
1949 business outlook, am not too
pessimistic with an inflationary ad­
“ I feel that livestock prices for the
first six months of 1949 should stay
up fairly well. General business to
the wholesaler, manufacturer and re­
tailer has slowed up considerably. If
the administration is as sympathetic
to labor as their pre-election promises
were, labor should benefit and pur­
chasing power should be maintained
or improved.
“With contemplated excess profits
taxes to corporations, it will be unpop­
ular to make money.”

President, N ational Bank of Com m erce

“First, I feel that all businesses, in­
cluding banks, need to do a good pub­
lic relations job and not try to make
excessive earnings, but try to give

good service to their customers as
well as to the various problems of a
national issue.
“As to whether prices are going up
or down, to me that is just plain gam­
bling and I think everyone should
carry a reasonable amount of inven­
tory to take care of their nominal
needs, taking into consideration fluc­
tuating purchasing power of the peo­
ple in their own trade territory.
“ I also feel that banks should put
a lot of extra work on the handling
of their loans. They should see that
all their papers are correctly drawn,
correctly filed and check their borrow­
ers as to payment of all taxes and
advise with them regarding the con­
duct of their business. This often
proves enlightening to both the bor­
rower as well as the bank.”

President, The N ational Bank of
South Dakota, Sioux Falls

“General business is good here at
present. Retail sales are holding well,
bank deposits are again increasing,
and money demand is up.
“Excellent crops, good prices, and
a resultant optimistic buyer demand
promise very favorable general busi­
ness conditions in this area through
at least the early part of 1949. An
average crop prospect by mid-year
1949 would quite certainly assure
some continuance of such condition.”
Bankers who made the following
reports for the N o r t h w e s t e r n B a n k e r
business survey preferred not to be
identified, but since their information
is of a pertinent character, we are pre­
senting it for your consideration.


IVo matter what the size, or the
specific need, of your Chicago account, we are

“ I do not want to be quoted, but I
cannot help but believe we are going
to continue to enjoy good business at
least for the immediate future. After
all, we do live in the best country in
the world. Personally I have confi­
dence in the American people.”

equipped to provide a complete banking serv­
ice, promptly and efficiently. Any and all of
onr services are at your disposal.


it y


a t io n a l


a n k

A N D T R U S T C O M P A N Y o f C h ic o ifo







Banker, December, 1948
Federal Reserve Bank of St. Louis



“Until Truman and the rest of his
gang give us some idea of what their
policies are going to be, I frankly
don’t know what to predict.”

“ It is apparent that we have, in this
territory, a good crop of grain har­
vested, a sizable number of livestock
on feed, and with the floor under the
grain and hogs, it would look like the
prices cannot decline to such a level
where there would not be a sizable
amount of money in our territory with

Iowa News
which to do business. Employment
is also running high and with those
factors we should continue to have a
good volume of business, regardless
of the costs which are excessive, es­
pecially in building. However, we all
have to realize that we are doing busi­
ness on a dollar that is worth 50 cents
in relation to values prior to World
War I I ”

“Difficult to make any prediction
until we know what the President is
going to recommend to Congress in
his annual message and what will be
the attitude of Congress.”

“ There are many things that might
affect our economy, either upwards or
downwards, which could be largely
dependent on what action our 81st
Congress takes, that I do think we
must wait until that picture is a little
more crystalized before we know what
to expect along these lines.”

Directors of Northwest Bancorporation have declared a dividend of 50
cents per share, together with a spe­
cial dividend of 10 cents per share,
on the 1,547,767 shares of stock out­
standing. Both dividends were pay­
able on November 26, 1948, to stock­
holders of record as of the close of
business November 10, 1948. This
makes total dividends for the year
1948 of $1.00 per share, the same as
in 1947.

Minneapolis Clearing House in 1947.
For 22 years he has been a member
of the Elks, is a member of the M in­
neapolis Athletic Club, the Des
Moines (Iowa) Club and the Bunker
Hill Golf Club, Dubuque, Iowa. He
is a past chairman of Dubuque Coun­
ty’s branch of the National Society
for Infantile Paralysis. In addition
to liis great love of flying, Mr. Stotes­
bery is an ardent fisherman and an
enthusiastic bridge player.

Elected President
Lee A. Short, trust officer, First
National Bank of Minneapolis, has
been elected president of the Corpo­


Mr. Stotesbery, who is an outstand­
ing aviation enthusiast, uses his own
private twin-engined plane on busi­
ness calls anywhere in the United
States. He employs an experienced
professional pilot as a Marquette Na­
tional employe, who is available on
a moment’s notice to wing Mr. Stotes­
bery and other bank officers on thenway to Detroit, Des Moines or Mon­
tana. Recently be attended the A .B .A .
meeting in Detroit, a conference in
French Lick, Indiana, and the Upper
Peninsula Michigan group meeting
at Hancock by plane, all in the space
of one week.
Mr. Stotesbery is married and has
live children. They are Russell L., Jr.,
28, who has been in the Veteran’s
Hospital for 23 months as a war casu­
alty undergoing major operations;
Edward H ., 26; Marion, 24; Am y, 22
and Carl Duane, 15.
Mr. Stotesbery was president of the
Federal Reserve Bank of St. Louis

rate Fiduciaries Association of Min­
nesota. He succeeds Burns W. Swen­
son, assistant vice president, North­
western National Bank of Minneap­
Other new officers of the group are;
Vice president, Sam W. Campbell,
vice president and trust officer, Mar­
quette National Bank, Minneapolis,
and N. J. Whitney, president, Minne­
sota Trust Company, Albert Lea, and
secretary-treasurer, Robert E. Towey,
vice president and trust officer, Mid­
land National Bank, Minneapolis.
Edward W. Spring, trust officer,
First Trust Company of Saint Paul,
was named chairman of the executive


4-State Service
Situated on the border of Iowa, Nebraska, Minne­
sota and South Dakota, Sioux City is the heart of a
great farm and livestock market. Serving this market
is the First National Bank in Sioux City.
Our broad contacts in other reserve cities and our
ability to serve you both in Sioux City and in the
Sioux City livestock market, make this your ideal
Sioux City banking connection. Let us serve you.

(Continued from page 18)



A. G. SAM, President
J. T. Grant, Vice President
J. R. Graning, Cashier

H. H. Strifert, Assistant Cashier
K. J. Shannon, Assistant Cashier

E. A. Johnson, Assistant Cashier

W . L. Temple, Assistant Cashier

J. Ford Wheeler, Auditor

in S IO U X C IT Y




Northwestern Banker, December, 1948

Origin o í f irIti W a reh o u sin g

Distorted Claims

That such claims are mere figments
of imagination is disclosed by an ex­
amination of the proceedings of the
Vice President
early annual conventions of the Amer­
St. Paul Terminal Warehouse Company
ican Warehousemen’s Association. Be­
yond question, custodian warehousing
For many years field warehouse
ing, and by the now generally accepted was well known at the time of the
receipts have opened a new source
term, “field warehousing.” It has founding of this great trade associa­
for the investment of hank funds
been said, naively enough but falla­ tion. At its second annual meeting
and in this article the author, at
ciously, to be the brainchild of certain in Chicago in 1892, S. W. Bailey, Jr.,
the request of the N o r t h w e s t e r n
of the Union Storage Company of
B a n k e r , gives his analysis of the
Pittsburgh, presented a paper entitled.
beginning of field warehousing.
“Yard Storage and Its Application to
General Storage.” In it Mr. Bailey
T HE origin of field or custodian
related in part as follows:
I warehousing well may be said to
“For the purposes of this paper I
be lost in antiquity, for it is neces­
cannot do better than refer in a gen­
sary to delve back into history as far
eral way, and briefly, to some of the
as the first book of the Old Testament
leading points in the experience of the
of the Bible to find the earliest re­
Union Storage Company of Pitts­
corded testimony that warehousing at
burgh, Pennsylvania.
that time already was an established
“ The company was organized in
practice in the land of Egypt. From
1880 for the purpose of doing a yard
the same book it is apparent that this
storage business exclusively, handling
ancient land then possessed laws or
mainly large lots of pig, scrap, and
customs relating to sureties and bonds­
other kinds of iron goods, assorting
men and recognized the principles of
and grading same when required by
the law of agency. It would seem to
the owner.
follow logically that the principles and
“ In addition to storage yards at
systems of our modern field warehous­
Pittsburgh, the company established
ing were established and practiced in
branch yards in other cities and states,
those far away times. It is logical
and issued negotiable warrants upon
also to assume that this form of bail­
pig iron and other material stored
ment has been practiced in essentially
therein. Upon material stored in a
P. W . F R E N Z E L
the same form down through the cen­
“ M ay be lost in an tiqu ity”
branch yard, the company issued ne­
turies in almost all of the lands of
gotiable warrants, and upon return of
the known world as each in turn individuals associated with the busi­ the warrants and payment of storage
adopted laws whereby its subjects ness within our own generation. We charges, would deliver in the storage
were governed.
have heard it stated vaguely that field yard the material described in the can­
The most important finding result­ warehousing originated “on the west celled warrant. At the branch yards
ing from a search for the genesis of coast, then proceeded across the coun­ the owner of the material to be stored
field warehousing is the establishment try to the east,” and similarily, “in usually furnished the labor needed in
of the fact that field warehousing is the south,” and “apparently simultane­ weighing and piling. The storage
of ancient rather than of recent ori­ ously in several parts of the United company received a compensation for
gin. It has been in use in this coun­ States.” To all of these statements,' the use of its warrant or credit.
try for generations, known variously no matter how boldly stated, should
“We lease the premises and have a
as yard storage, custodian warehous- have been appended a weak “ I guess.” yardmaster there.
“During the first few years of the
company’s existence there was a great
demand for yard storage, the company
having in its custody as much as 60,FOR FARM PATRONS
000 tons of iron at one time. The
business was profitable to the com­
" F a rm e r’s Tax Saving G uid e"
Farm W ork S h e e ts — New, com plete
pany, and a great convenience and
guides for the farmer in assembling
By Byron Ver Ploeg, Iowa Attorney
his income tax figures. Two sides— not
benefit to the customers.”
Now of Drake U. Law Faculty.
the usual one page skeleton work sheet.
Price $1.00 — Sent on free approval.
The year 1880 was some time ago.
Samples on request.
It antedated by many years the auto­
also other
mobile and the airplane and practi­
all of the principal organizations
now engaged in the business of field
(Time-saver forms for offices preparing tax returns)
warehousing in the United States.





Farm Schedules.
Farm Accrual Schedules.
Rent Schedules.
Business Schedules.

Type your Federal
& State schedules In
one operation

No. 6 Deductions
Medical, etc.)
No. 7 Capital Gains and Losses.
No. 8 Depreciation Schedules.

120Vz High Ave. W.

Ample space where
the returns themselves
are inadaquate

fSend for samples and quantity p rices/
Banker, December, 1948
Digitized for Northwestern
Federal Reserve Bank of St. Louis

Old Company
Philadelphia Warehouse Company
was another well-known firm that then
conducted a field warehousing busi­
ness throughout the east, spreading
out to do business as far as the midwestern states. Apparently neither of
these companies laid claim to be the

Iowa News
originator or inventor of field ware­
housing, so there can be little doubt
of its existence in the United States
long before these specialists flour­
For all practical purposes it is suffi­
cient for us to know that field ware­
housing has had a long development
in the United States and that its part
in the commercial and financial life
of the country was recognized and
protected by our courts by the begin­
ning of the present century. Its great­
est growth took place during the two
decades between World Wars I and
II, and as now practiced by respon­
sible bona fide warehousemen, it per­
forms an invaluable service to banks
in safely financing the expanding
needs of present day commerce and
agriculture.-—The End.

ciation’s Executive Council at the 74th
annual convention of the A.B.A. in
Detroit, Michigan. The new member­
ships bring the total A.B.A. enroll­
ment to 16,211 members (banks and
branches), representing 97.3 per cent
of all banks in the United States and
99 per cent of the nation’s banking

"Old-Timer" Dinner
Six hundred and thirty-nine Con­
tinental Illinois Bank “old-timers”
attended the dinner party given at
the Palmer House last month for the
men and women who have been asso-


dated with the bank 25 years or more.
The bank’s veteran employes and
pensioners total 845. A number of
the retired people live at a distance
from Chicago and were not at the
dinner. The years of service of the
guests ranged from 25 to 49 years, and
119 of these were women.
Among the guests with the longest
service records were:
Frank F. Taylor, 49 years; Sidney
A. Barclay, 47 years: George Loacker,
46 years; John J. Johnston, 45 years;
Niels C. Knudsen, 45 years; Archie
Ferguson, 44 years; Edward W. Bailey,
43 years; and Cornelius Vandervoort,
43 years.

A.B.A. Announces Manual
The Country Bank Operations Com­
mission of the American Bankers
Association will mail to all A.B.A.
member banks a new manual to better
acquaint them with the reserve meth­
od of treating bad debts for income
tax purposes, it was announced by
Richard W. Trefz, chairman of the
Commission and president of the Bea­
trice State Bank, Beatrice, Nebraska.
The manual, called “ Reserve Method
of Accounting for Bad Debts in Banks
for Federal Income Tax Purposes,” is
an explanation of the procedure which
was approved in Memo 6209 by the
Bureau of Internal Revenue to elimi­
nate the difficulties existing in setting
up reserves for bad debts in banks.

Collection and
Transit Service
To assure you the fastest possible
service, we keep watchful eyes on all

Elected Trustee

train and plane schedules . . . pick

Fred H. Haggerson, president of
Union Carbide and Carbon Corpora­
tion, was elected a trustee of Central
Hanover Bank and Trust Company at
a meeting of the board. He fills the
vacancy on the bank’s board created
by the resignation of Benjamin O’Shea,
who had served as a trustee since
Mr. Haggerson has been with Union
Carbide and Carbon Corporation for
nearly 30 years, and was elected to
the office of president in 1944. He is
also a director and member of the ex­
ecutive committee of that corporation.

up and deliver mail at short intervals

A.B.A. Membership
During the past association year the
American Bankers Association en­
rolled 333 new banks, according to
the annual report of the A.B.A. or­
ganization committee, submitted by
Max Stieg, chairman of the commit­
tee and cashier of the Dairyman’s
State Bank, Clintonville, Wisconsin.
The report was submitted to the Asso­
Federal Reserve Bank of St. Louis

at the postoffice only a block away.
W e know that time is the essence.
Hence all collection and transit items
are routed directly wherever practical.

C 1E C U R IT T 7 ~
VJFof s ïo ü x c itÿ A
M em ber Federal D ep osit Insurance C orporation

Northwest ern Banker, December, 1948


Safe ffepa sil Ila si a ess
Manager, Safe Deposit Division
First Wisconsin National Bank
President, American Safe Deposit
HEN the first safe deposit box
was rented in the year 1865,
there came into being a normal
and a natural need for the develop­
ment of the specialized knowledge
necessary to the correct and success­
ful conduct of the safe deposit busi­
When the first safe deposit associa­
tion was organized in New York in
1906, there came into being the first
organized recognition of this need,
plus the need for the dissemination
and propagation of this knowledge
which would give to the profession
the high standards needed to protect
and promote the general welfare of
all those engaged in it, as well as
the public which it served.
Today with approximately fifteen
thousand vaults in the United States,
and with these basic needs at least

as pronounced as ever, it is disturb­
ing to find that in only sixteen states
are there established safe deposit as­
sociations—perhaps twenty-five asso-


I am speaking to you about your
business, about my business, about the
business of every bank and safe de­
posit company in this country. I am
talking about the business of every
state bankers association in this coun­
try and, if you please, I am speaking
about the business of the American
Bankers Association.


ciations in all. It is even more dis­
turbing to realize that in many states
the actual safe deposit coverage is
entirely inadequate.
1 direct your attention to two de­
plorable, yet inescapable, facts:
1. That an institution which, ac­
cording to reliable estimates, protects
more wealth than the combined total
of all bank deposits in the United
States, has no organized identity in
two-thirds of the states; and
2. That in some of the few states
in which safe deposit associations
have been organized, less than 10 per
cent of the banks and safe deposit
companies in the state are included in
the membership of the safe deposit
association, and in only one state is
the membership greater than 50 per

Significance Clear
The significance of these facts is
clear. They indicate that while the
need for the development of the spe­
cialized knowledge necessary to the
correct and successful conduct of the
safe deposit business has been met

Two Carbons
Watermarked Bond
Printed Covers

with a very substantial degree of suc­
cess (thanks to the splendid person­
alities and organizations who have
made, and those who continue to
make, these life-giving contributions),
the equally pressing need for the dis­
semination and propagation of this
specialized knowledge has not been
and is not being met. Until this need
is met, the safe deposit industry will
never find its rightful place in the
banking and economic picture.

What are we waiting for?
Wisconsin Safe Deposit Association
was organized in 1921. By 1938 we
were at a veritable standstill. In fact,
despite all efforts, we were going
backwards. We sold the safe deposit
idea to the Wisconsin Bankers Asso­
ciation at this time, and were re­
warded with a subcommittee appoint­
ment. Two years later we attained
the status of a full fledged committee.
In 1945, what 1 believe to be the most
efficient safe deposit manual in ex­
istence (and the only one of its kind),
was published and distributed to ev­
ery bank in Wisconsin. Such a thor­
ough spread of safe deposit instruc­
tion and guidance is possible in no
other way. In two years time the
practical effects of this program have
been clearly demonstrated. The Wis­
consin Safe Deposit Association in­
creased its membership more than 100
per cent.

(Continued from page 19)

E. H ow ard H ill, president of the
Iowa Farm Bureau Federation, gave
some good advice about credit recent­
ly when he said, No. 1, “Never abuse
a line of credit” ; No. 2, “Don’t borrow
more than you should”; No. 3, “Don’t
spend more than you have to for non­
liquid assets” ; No. 4, “Put some money
away for a rainy day” ; No. 5, “Live
within your income.”

Stapled from Back

Quality Duplicate Deposit Books to match
your other high quality printed forms.

N e b r a« s kSa
a69l e s b o o k

21st to 22nd
on y


p. o. box
Lincoln 1, Nebraska

Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis


. ..A.















- ' . ■"




Iowa News
According to Bennett Cerf in the
Saturday Review of Literature, Dr.
Morris Fishbein, head of the American
Medical Association, recalled one med­
ico who wrote out a prescription in
the usual legible fashion to which
doctors resort on such occasions. “The
patient used it for two years as a
railroad pass. Twice it got him into
Radio City Music Hall and once into
Ebbets Field. It came in handy as
a letter from his employer to the cash­
ier to increase his salary. And to
cap the climax, his daughter played it
on the piano and won a scholarship
to the Curtis Music Conservatory.” . . .
Albert .1. Robertson, vice president
of the Iowa-Des Moines National Bank
and regional director for the Hawkeye
State for the U. S. Savings Bond Divi­
sion, in speaking before the Iowa
Bankers Convention, said there are
now 75 million people who own 50
billion dollars of United States Sav­
ings Bonds.
Mr. Robertson pointed out that
more than 90 per cent of all the bonds
sold in Iowa are handled by the banks
and that the banks must cooperate in
the program of selling bonds to see
that sales exceed redemption as they
now do.

As a competent, skillful and pleasing
officer, .1. Overly Peck, president of
the Central National Bank of Colum­
bus and retiring president of the Ne­
braska Bankers Association, did a fine
job at the 51st annual convention in

changed and we must do something
to combat this false ideology. If we
withdraw from Europe, it will all go

The next time we have a national
election, it will be better not to count
the ballots until they are cast.
Some people are asking the ques­
tion, “Will George Gallup now revive
the Literary Digest and become its
Probably the best answer of all as
to why President Harry Truman was
re-elected was the fact that we have
been at the top of a business cycle.
Practically no President in United
States history has been “kicked out
of office” when the country was en­
joying prosperity. President Hoover
was defeated by President Roosevelt
at the bottom of the business cycle
in 1932.
As Senator Robert A. Taft of Ohio
said, “The election of President Tru­
man shows it is almost impossible to
put an administration out of office at
the very peak of a prosperity boom.
We had thought that other circum­
stances would balance the boom fac­
tor, but they didn’t do so. The fact that
the vote in farm areas, as well as in in­
dustrial areas, was quite similar gen­
erally indicates both farmers and
workers are pretty well satisfied with
Louis Bromfield, editor, author and
farmer, from Lucas, Ohio, told the


Iowa Bankers Convention that “only
10 per cent of the farmers are effi­
ciently operating their farms. This
percentage should be increased so that
we will not have a “kept agriculture”
as we do now with subsidies and
parity payments.”
Colonel William G. Edens, pioneer
of the good roads movement in Illinois,
observed his 85th birthday recently at
the home of his son, William M. Edens,
in Winnetka.
Colonel Edens, a vice president of
the old Central Trust Company of Chi­
cago prior to his retirement 18 years
ago, has been prominent for many
years in the American Bankers Asso­
ciation and was a long-time member
of its executive council.
Colonel Edens was born in Rich­
mond, Indiana, educated in public
schools there, and began his career as
a Western Union messenger, later en­
tering railroad service as a brakeman.
With John McCutcheon, the late
George Ade and other fellow Hoosiers,
he was a founder of the Indiana So­
ciety of Chicago.
He takes particular pride in his 62
years of continuous membership in
the Brotherhood of Railroad Trainmen
(Turn to next page, please)

G e a r e d to the
B a n k in g Business

Whenever you want a Robert Ingersoll to give you an oration on “Ne­
braska,” just ask Ralph D. Brooks,
attorney of McCook, Nebraska, to
speak on his native state. We heard
him at the Omaha Rotary Club and
he is 100 per cent plus in telling the
virtues of the Cornhusker state.
Former Governor Dwight Griswold
of Nebraska who, during the two past
years represented the United States
in our affairs in Greece, told the Ne­
braska Bankers Convention that “the
main trouble in Greece is that they
have a population of 8 million living
on a piece of territory the size of
Nebraska ami with their rocky and
hilly country they cannot raise enough
food to support that many people.”

When asked if he thought we would
have war or peace in Europe, he said.
“ 1 think we will have no peace and
no war, hut a continuation of one cri­
sis after another which we may hope
to continue without having war. The
atomic bomb if it is dropped on Rus­
sia would settle nothing, because the
ideas of Communism would not be
Federal Reserve Bank of St. Louis

Our 87th
to help
make men
and boys
happy with
gifts to

...seats quickly and stays sealed.
Protect bulky mail in these strong­
shouldered, wide seamed, deeply
gummed envelopes. Write for
samples and prices.

Faithfully Yours Since 1861


New York 14, N. Y.
M inneapolis 1, Minn.
St. Louis 10, Mo.
Des Moines 14, Iowa
Kansas City 8, Mo.
Northwestern Banker, December, 1948

Iowa News


-1 m orion n

A r e in

Ur on ! Item a nil

First U. S. Coins Were Turned
Out in 1793 in Small Quantities


OME claim coin collecting is one of
our oldest hobbies. Old coins date
back for centuries, and it is claimed


in those dark days people saved them
as a hobby.
Here in America, however, our first
coins were minted in 1793. The half
cent piece catalogues $20, while the
one cent value lists twice as much.
One of the scarce half cent coins is the
1796 which lists $200. The scarce
Indian head penny is dated 1877 and
while it catalogues $15, it brings about
$6 over the counter from a coin dealer.
There have been issued 48 distinct
‘varieties of the 50c commemorative
coins. The Iowa lists at $5, and has
proven a g o o d investment, even
t h o u g h the centennial committee
charged $2.50 each for them. The
Columbian Exposition 50c coin, issued
in 1892 catalogues $1.25 and the 1893
lists at $1. They are difficult to sell


—reminder of a railroading youth in
the days of hand-set brakes, link-andpin couplings, and lamplit coaches.





O rtL /A L /Z c L I



421 Ninth Steeet


Oldest in Des Moines
210 6ih Ave.

Dial 4-7110

Pres, and Sec.

Asst. Sec.

FOR YO U R E N JO Y M E N T . . .
Listen to the

KRNT, 1350 KC

1 to 1 :30 p.m. Sundays

Theodore Jacobs, president of the
First National Bank of Missoula, Mon­
tana, published some highlights re­
cently in “The 75 Year History of
Montana’s Oldest Banking Institu­
tion.” The booklet was entitled “When
the Checkbook Replaced the Poke.”

When the bank opened in 1873 they
had “individual deposits subject to
check” amounting to $17,352, and the
deposits are now over $11,900,000.
The present officers of the bank are:
Theodore Jacobs, president; Randolph
Jacobs, trust officer; R. H. Dick, cash­
ier; R. E. Noel, assistant cashier, and
.1. E. Kellogg, auditor.

(Continued from page 20)
used to locate certain gold bars which
were part of a long lost treasure. He
was convicted and sentenced to the
The avti d o w never
sought to recover the money from

Stamp and Coin Co.
Royal Union Bldg.

Des Moines
Appraisals for tax and
e s ta te purposes

Northwestern Banker. December. 1948
Federal Reserve Bank of St. Louis

at $1 each, while the 25c Columbian
quarter soared to $10, and the Colum­
bian dollar has touched $15.
The sky seems to be the only limit
on gold coins, which you know, may
legally be held by coin collectors. As
a general rule all gold coins are worth
double face. The commemorative
gold coins, the McKinley lists at $15,
and is rare even though 10,000 were
issued. Fifty dollar gold coins are
selling for $200 and more apiece. The
condition the coins are in also deter­
mines their value. That is, a coin
which has been worn will sell at a
cheaper price than one which is un­
Even wooden nickels are collected
by coin fans, and some are considered
rare. Coin collecting is a big hobby
with many followers.—Roy Lawrence,
Anamosa, Iowa.
him and the statute of limitations ran
so as to bar any claim against him by
her. The federal government, I i o a v ever, went after him to pay an in­
come tax thereon. Should he be re­
quired to pay the tax?

Iowa News
Yes. There is a line of cases that
runs to the effect that an embezzler
does not have to pay a federal income
tax on his ill gotten gains because
title never passes to him. This is not
applicable to swindling in Texas,
however, for in that state title to the
property acquired passes to the swind­
ler and, because of this aspect, a fed­
eral income tax must he paid on the
money received. The U. S. Circuit
Court of Appeals, Fifth Circuit, has
so held in a recent decision.
Gordon, a retired Minnesota
banker, owned a building in that
state in whieh he operated an insur­
ance agency. There was also a res­
taurant and a bowling alley in the
building, the owners being his ten­
ants. AI1 three and their patrons used
the same stairs in the back as a means
of ingress and egress to certain rest
rooms. The stairs were dark and
lights therefore had to be provided.
Gordon furnished lights, swept, and
otherwise exercised control over
them. A customer of the restaurant,
through no fault of his own, fell on
the stairs one day while returning
from a rest room because they were
not adequately lighted. He sued Gor­
don for his damages. Was Gordon

Yes. A landlord retaining control
over a stairway, which is used in com­
mon by different occupants of his
property and which is of such nature
as to require artificial light in order
to be safe, must adequately light such
stairway for the protection of persons
rightfully using it. When he does not
do this and damages result he is liable
therefor. The fact that the person
damaged is a patron of one of his ten­
ants does not permit the landlord to
escape liability. The Minnesota Su­
preme Court has so hold recently.

(Continued from page 34)

$22.05, or an increase of only 10 per
cent over the figure in use 15 years

Better Interest
Life insurance management in
general is optimistic over the in­
terest rate for the first time in a good
many years. Last year our interest
rate experienced on new investments
equaled for the first time in 15 years
the interest yield in our total asset
portfolio. This means a halt in the
interest rate decline. In the life in­
surance industry in general, this level­
ing off is taking place at an average

Federal Reserve Bank of St. Louis

rate of interest of about 2.9 per cent,
varying between companies depending
upon the type of investment policy.
In recent months there has been an
indication that life insurance invest­
ment counsel expect interest rates to
increase. It is common knowledge in
the investment field that there has
been a firming of interest rates on
mortgage loans. Many lending insti­
tutions formerly making 4 per cent
loans are now insisting upon a mini­
mum rate of 4% per cent. If this
trend continues, it will have a very
great effect, and a favorable one, upon
the earnings of life insurance compa­
nies and hence upon dividend distri­
butions to policyholders.

let those prospects get away from you.
The strength of the institution of
life insurance and its important role
in the American way of life has been
forcefully proven over and over again.
Let’s continue to expect a brilliant
future ahead of us and our hopes
will surely be realized.—The End.

Elmer O. Lukkasson
Elmer O. Lukkasson, 57, cashier of
the First State Bank of Northome,
Minnesota, died in a Bemidji hospital
recently. He had been associated with
the First State Bank since 1929.

Tax Decrease
I do not need to mention to you
. the expanded life insurance mar­
ket caused by the recent reduction in
Federal income taxes, particularly the
changes brought about by the com­
munity property provisions. Many in­
dividuals did not feel the full effect
of this tax saving until they filed their
revised estimates of 1948 tax last June
15th. Many individuals are finding
that they have more surplus income
than they had counted upon. Don’t


C O N V E N T iO N S

December 13-15, National Credit Con­
ference, A.B.A., Chicago, Sherman

October 11-12, Annual Convention,
Nebraska Bankers Association,
Lincoln, Hotel Cornhusker.



I n v e s t o r s S y n d i c a t e ......................................... 30
I o w a - D e s M o in e s N a t io n a l B a n k .................72
I o w a L i t h o g r a p h i n g C o m p a n y ..................... 68
I r v i n g T r u s t C o m p a n y .................................... 4



.................................................... 68

DECE M BER. 1948
A l l i e d M u t u a l C a s u a l t y C o m p a n y .............32
A m e r i c a n E x p r e s s C o m p a n y ....................... 24
A m e r i c a n N a t i o n a l B a n k & T r u s t C o . . . 34
A s h w e l l a n d C o m p a n y ..................................... 31

B a k e r H o t e l ...................................
B a n k e r s R u b b e r S t a m p ...................................68
B a n k e r s S e r v i c e C o m p a n y , I n c ...................22
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 . . . 71
B a n k s , W i l l i a m H., W a r e h o u s e s , Inc. . . . 5 2
B u r r o u g h s A d d i n g M a c h in e C o m p a n y . . . 5
C e n t r a l N a t i o n a l B a n k in C h i c a g o ............ 42
C e n t r a l N a t io n a l B a n k an d T r u s t Co. . . . 1 2
C ha se N a t i o n a l B a n k ......................................... 25
C it y 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 — C h i c a g o ................................................ 62
C o n t i n e n t a l N a t i o n a l B a n k — L i n c o l n . . . 50


L a M o n t e , G e o r g e , a n d S o n ........................... 8
L a w r e n c e B r o s .— A n a m o s a , I o w a ...............68
L i v e S t o c k N a t i o n a l B a n k — C h i c a g o . . . 57
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 ............. 54
L i v e S t o c k N a t i o n a l B a n k — S io u x C i t y . . 40

M arquette
M erchants
M erchants
M innesota

N a t io n a l B a n k ................................ 66
M u t u a l B o n d i n g C o m p a n y . . . 32
N a t i o n a l B a n k ............................... 2
C o m m e r c i a l M e n ’ s A s s n ............ 37

N a t io n a l B a n k o f W a t e r l o o ..........................60
N a t io n a l C ash R e g i s t e r C o m p a n y ........... 7
N e b r a s k a Sales B o o k C o m p a n y ................... 66
N o r t h w e s t e r n N a t i o n a l B a n k ........................36


O m a h a N a t i o n a l B a n k ....................................... 21

P olicy h o ld e r s N ational L ife Insurance
C o m p a n y ...............................
P r o t e c t e d C h e c k C o r p o r a t i o n ....................... 27
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 ..........38

R o l l i n s , R i c h a r d R., I n c .................................... 30

D a v e n p o r t , F. E., an d C o m p a n y ......... 49, 68
D e L u x e C h e c k P r in t e r s , I n c ....................... 31
D e s M o in e s B u i l d i n g , L o a n an d S a v i n g s
A s s o c i a t i o n ......................................................... 68
D r o v e r s N a t i o n a l B a n k .....................................61

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 . 28
S c a r b o r o u g h an d C o m p a n y ............. 33, 45, 55
S e c u r i t y N a t i o n a l B a n k — S i o u x C i t y . . . .65

F i r s t N a t i o n a l B a n k — C h i c a g o ................... 6
F i r s t N a t i o n a l B a n k — O m a h a .......................48
F i r s t N a t i o n a l B a n k — St. L o u i s ..................53
F i r s t N a t i o n a l B a n k — S i o u x C i t y .............. 63
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 . . . . 49
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 ................... 26
F r a n k e l C l o t h i n g C o m p a n y ............................ 67

T a l l m a n LVood an d E l e c t r i c S h o p ...............68
T a x S u p p lie s C o m p a n y ....................................... 64
T e n s i o n E n v e l o p e C o m p a n y ............................ 67
T o p t l e - L a c y N a t i o n a l B a n k .................. 50, 51


U n it e d S ta te s N a t i o n a l B a n k ....................... 44


V a l l e y B a n k an d T r u s t C o m p a n y ...............59

H a m m e r m i l l P a p e r C o m p a n y ........................23
H a r r i s T r u s t an d S a v i n g s B a n k ................ 39
H o l l i n b e c k S ta m p an d C o in C o m p a n y . . . 68
H o m e I n s u r a n c e C o m p a n y ............................. 3

W a l t e r s , C h a r le s E., C o m p a n y ..................... 68
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 ............32
W h e e l o c k an d C u m m i n s ...................................30


Northwest ern Banker, December, 1948


Safe at Home
“ Will your wife hit the ceiling when
you come in this late?”
“ Probably, she’s a rotten shot.”
Morning-after Observation
It isn’t the ice that makes people
slip. It’s the stuff they mix with it.
Team Work
A man stepped up to a cigar counter
and bought two 10-cent cigars. An­
other man pushed forward and said:
“You sell those cigars three for a
quarter, don’t you?’
“Yes,” replied the clerk.
Producing a nickel, the customer
said, “ I’ll take the other one.”
Canine Eloquence
The politician’s dog greeted his
master with glee, thumping his ridicu­
lous stub of a tail on the floor in a
veritable tattoo of joy.
“ Now, that’s devotion,” his proud
owner chortled. “He talks with his
“ I see,” said a friend, “a stump
Thanks for the Buggy Ride
MacTavish stepped into the taxi and
said, “Waterloo Station, my mon.”
The driver quickly sized up the fare
as a stranger in London and for three
hours drove him all over the city in­
stead of directly to his destination.
W7hen he finally came to Waterloo
Station, MacTavish darted up to a
policeman and inquired, “Officer, what
is the taxi fare from Euston to Water­
loo?” The bobby told him.
“Woud you mind paying the driv­
er?” MacTavish asked, giving the popliceman the exact sum. “ I’ve a train
to catch.” And with that he disap­
peared into the station.
Smart Worker
Moe: You only make $30 a week
and you support eight children? How
do you manage?
Joe: Easy. There are 500 people
working at the factory with me and
every week I raffle off my wages for
four bits a chance.
Northwestern Banker, December, 1948
Federal Reserve Bank of St. Louis

Kitty: So you met Marian today.
Catty: Yes, I hadn’t seen her for
two years.
Kitty: Has she kept her girlish fig­
Catty: Kept it? She’s doubled it.
Take Your Pick
Judge: Do you challenge any of
the jury?
Defendant: Well, I think I can lick
that little guy on the end.
For Keeps
Customer: Let me have some win­
ter long underwear.
Clerk: Yes, sir. How long would
you like them?
Customer: I don’t wanna rent them.
I wanna buy them.
Double Convincer
Daughter: But mother, I can’t
marry John. He’s an atheist. Why
he doesn’t even believe there’s a hell.
Mother: You go right ahead and
marry him, dear. Between the two of
us, we’ll convince him he’s wrong.
Just W ailing Hopefully
Private: An MP just hanged him­
self, sarge.
Sergeant: Holy smokes! Have you
cut him down?
Private: No, sir. He ain’t dead yet.
Old-Timer: My father was a great
western politician in his day.
Friend: Yes? What did he run for?
Old-Timer: The border.
He Found Out
A negro was caught trying to sell

insurance without a license and was
hauled before the insurance commis­
“Don’t you know,” demanded the
commissioner, “that you can’t sell in­
surance in this state without a li­
“Boss,” replied the culprit, “ dat
splains de mattah. I done foun’ out
I couldn’t sell none, but I didn’t know
what the reezin wuz until you tole me.”

Several years after the break-up of
their love affair, the man met his old
flame unexpectedly at a dance.
“Let me see,” she said coldly, “was
it you or your brother who used to
be an admirer of mine?”
“ I really don’t remember,” he re­
plied affably. “Probably my father.”
There was a heated argument going
on in the court room one day. The
case involved a woman who was hit
by a car. The defending lawyer,
eager to get his client’s innocence
across to the jury, said, “ Mr. Smith
couldn’t be wrong; he’s been driving
cars for 15 years.”
The prosecuting attorney, always a
shrewd talker, countered quickly with:
“ In that case my client is certainly
right. You see, she’s been walking
for 40 years.”
A colonel and a major were sitting

in a Washington cafe. Across the
way sat a PFC and lovely lass. The
colonel’s interest prompted him to
send this note to the private:
“ I believe I studied with you at
Yale, and the major thinks he studied
with you at Princeton. Please come
across and straighten us out.”
The private replied by note: “ I
didn’t study at Yale or Princeton, but
I did study at the National School of
Taxidermy and I’m taking care of this
pigeon myself.”
A conductor was driven crazy at

rehearsals because at least one mem­
ber of the orchestra was always miss­
ing. After the last rehearsal he tapped
his baton for attention and said, bitingly: “ I want to thank the first violin
publicly for being the only man in the
orchestra who had the decency to at­
tend every rehearsal.”
The first violin hung his head and
looked sheepish. “ It seemed the least
I could do,” he said in a deprecating
tone. “You see, I don’t expect to
show up for the concert tonight.”
Federal Reserve Bank of St. Louis

T o all our friends in the banking

profession, we extend our best wishes for a Happy Holiday Season

— and a New Year of continued Success and Prosperity.


Member Federal Deposit Insurance Corporation

Member Federal Reserve System


For over 73 years this Bank has been privileged to serve as correspond­
ent for hundreds of Iowa's leading banks. Here, at Iowa's largest
bank, special consideration is given to all correspondent business,
whether the banking matter be routine or of a specialized nature.
Our officers welcome inquiries regarding our correspondent bank

A Strong, Dependable Correspondent Connection

Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation