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»KCEM BER UM » What Do You Want From Your Correspondent Bank? Survey— Pages 14, 15 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK EX EC U T IV ES C H R IST EN C A B LE C A R — S e e Page 7 i OFFICERS Jam e s E. H a m il t o n , Chairman Executive Committee S. E. COQUILLETTE, Chairman of the Board Jo h n T. H a m il t o n II, President R. D. B r o w n , Asst. Cashier F red W . S m i t h , Vice President O. A. K e a r n e y , Asst. Cashier G eorge F . M il le r , Vice President and Trust Officer Stan ley J. M ohrbacher, Asst. Cashier M a r v in R . S eilden , E verett C. P r a t t , Vice President Asst. Cashier R. W . Ma n a tt, C. F. P e r e m s k y , Asst. Cashier Vice President L . W . B r o u l ik , V ictor W . B r y a n t , Vice President Asst. Cashier P eter B a il e y , J a m e s E. C o q u il l e t t e , Cashier Asst. Cashier YOU ARE INVITED to hear The Merchants National Hour over WMT, 9 to 10 each Sunday evening . . . an outstanding production used to promote banking in Iowa. Jf 'o Hr* G iwnt Wood OUR PLEDGE of Service for 1 9 5 0 As we open a new decade, bankers throughout the Midwest are faced with greater opportunities and greater responsibilities than at any time in American history. If we are to maintain our productive system of individual opportunity, the independent banking system must be strength ened and fully explained. These are truly years of decision. Our pledge to you is one of service and cooperation during the New Year. As in the past, we will provide our hundreds of correspondent banks with dependable, nation-wide service for their customers; and we will use every practical avenue of communication to tell the story of independent banking to people throughout this great state. the Merchants National bank C E D A R R A P I D S I O W A Member Federal Deposit Insurance Corporation No. 749. Northwestern Banker, published monthly hy the Northwestern 35c per copy, $3.00 per year. Entered as Second Class Matter January 1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 1895. at the Post Office at Des Moines, Iowa, under Act of March 3, 1879. 7" 3 * \ THE W A V Y LINES ® ARE A LA MONTE TRADE-MARK k ? y . : : ■: Good Impressions lL N im pressive, dignified bank building is a A powerful element in securing favorable public reaction. But equally important is the quality of the safety paper upon which your checks are printed . . . for every day these representatives of your bank are reaching hundreds of potential customers. » » In selecting your check paper consider this significant fact: A great majority of America's leading banks specify La Monte Safety Papers. 111! ¡¡¡I ; G E O R G E L A M O N T E & S O N NUTLEY • NEW JERSEY I'-: ,.l: , SAFETY PAPER FOR CHECKS ... j https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 4 You told us what you w anted! Here it is! New Burroughs Bank Bookkeeping M achine foster Posting j I I v l l I *nstant one-hand form insertion saves waste motions, assures positive form alignment. g l i r l l j positive visible alignment means greater speed and accuracy in posting. £ 0r Basier Posting ! I « ■ r i l l statement ledger end lock automatically warns operator when last posting line is reached. Tl m i l / i t I simplified single funcI tion motor bars auto matically select proper posting column. All new positive balances print automatically. m o effort . Y- feather-touch motor bars take 75% less reduce errors caused by fatigue. | l l r l l l easy key depression . . . takes 33% less effort than on former models, cuts operator fatigue. Simplicity °f fBstinc,! Burroughs presents a new bank book 11f t I I dual platen construction allows list post ing during posting run .. . extends use to other adding machine jobs. 1 keeping machine whose every feature has been dictated by the needs of today’s banking. Here is the fastest, m i l / M l I color harmony in soft I greys and browns re duces eyestrain. easiest way to boost production and lower the cost of bank posting. The host of new features in the new Bur 1 Ira 1 1 automatic count for all checks, check correc tions and returns, deposit entries, deposit corrections and accounts active. 1 ml w i l l control keys simplify the 1 % ^ ^ ^ / handling of all adjustments during the posting run . . . no memo records required. roughs bank bookkeeping machine bring new speed to the figure-work of banking . . . bring new ease of oper ation and assure increased accuracy. Let Burroughs show you the advan tages of the new bank bookkeeping machine today! Beu&lv BanAew'Sfcecÿùxtâmâ u/ctâ Bu/wouÿÀJ Bcÿl/te&urtÿ N o r t h w e s t e r n Ba n ker, D e ce m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (y ^ fM U C S iïr y / v w eé I n d ia n t r a i l which once led past Israel Putnam’s birthplace has given way to a crowded turnpike,- the town, for merly Salem Village, is now Danvers, Mas sachusetts,- but the house has withstood the onslaught of time and change and last year had its 300th anniversary. It was built in 1648 by Thomas Putnam, son of the foun- T he Just as they were preparing to burn him alive he was rescued. For a time Putnam lived peacefully on his Connecticut farm and augmented his income by operating a tavern where patriots used to congregate in the stirring days be fore the Revolution. Then in April, 1775, came the incident known to every school child. The news from Lexington reached him while he was at work in the fields. Lay ing down the plough and unyoking the oxen, he immediately set off to fight for freedom. At the Battle of Bunker Hill it was General Putnam who uttered the mem orable command to his men, “ Don’t fire until you see the w'hites of their eyes.” Another of “ Old Put’s” exploits which has become part of the American legend took place on his farm where a savage wolf and her whelps had killed seventy of his sheep and goats. With a torch in one hand and his musket in the other, he drove her into a cave into which his neighbors lowered him by his feet. There he slew the ferocious beast and brought her carcass to the surface. Israel Putnam’s birthplace is now enclosed by one of the four leaves of a huge clover-lea f traffic circle which was especially de signed to spare the ancestral home. The present owner, who founded three wellknown private schools in New England, has devoted a half century to the main tenance and restoration of the house. It is occupied by one of her sons whose child represents the tenth genera tion of Putnam descendants to live there. The Putnam homestead claims the dis tinction of being the oldest house in the country to have remained in the continued possession of one family. der of the family in this country, and him J b e Tdome, through its agents and self the grandfather of Israel who was born brokers, is America's leading insurance there in 1718. protector o f American homes and the Soon after his marriage to Hannah Pope homes o f American industry. in 1738, Israel moved to Pomfret, Connec ticut, later renamed Brooklyn, where he be came a prosperous member of the community. Enlisting as a volun teer during the French and Indian Wars, he was soon commissioned second lieutenant and joined Home Office: 59 Maiden Lane, New York 8, N. Y. Rogers’ Rangers. One of many FI RE • AUTOMOBILE • MARINE narrow escapes in his eventful The Home Indemnity Company, an affiliate, writes life occurred when Indians took Casualty Insurance, Fidelity and Surety Bonds him captive and tied him to a tree. C o p y r ig h t 1 9 4 9 , T h e H o m e I n s u r a n c e C o m p a n y ☆ TH E Wallpaper in General Putnam’s bedroom is probably the first ever used in any house in this country https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H O M E ☆ 6 * The First National Bank of Chicago Board of Directors S ta tem e n t o f C o n d itio n N o v e m b e r 1, 1 9 4 9 Edward E. Brown ASSETS Cash and Due from Banks • $ 495,236,711.79 United States Obligations— Direct and fully Guaranteed Unpledged . . . . . . $ 751,602,717.08 Pledged-—To Secure Public Deposits and Deposits Subject to Federal Court Order 186,938.491.07 To Secure Trust Deposits 51,133,491.94 Under Trust Act of Illinois . 527,600.00 990.202,300.09 Other Bonds and Securities 96,280,342.73 • • • • Loans and Discounts . . . . 735,291,663.66 Real Estate (Bank Building) 2,629,123.33 . . . . Federal Reserve Bank Stock • • • • 4,275,000.00 Customers’ Liability Account of Acceptances 3,867,721.61 Interest Earned, not Collected . • . . . 7,612,205.24 Other Assets . . . . . . 651,945.13 * • f * $2,336,047,013.58 LIAB ILITIE S Capital Stock . . . . . . $ 75,000,000.00 Surplus . . . . . . . 67,500,000.00 Other Undivided Profits . . . . 10,189,487.52 Discount Collected, but not Earned . • • • • 1,073,367.70 Dividends Declared, hut Unpaid • • • • 1,500,000.00 Reserve for Taxes, etc. . . . . 22,835,727.73 Bills Payable . . . . . . . 3,200,000.00 Liability Account of Acceptances 4,416,568.36 Time Deposits . . . . . . $ 439,697,930.66 1,516,363,912.52 Demand Deposits . . . . . Deposits of Public Funds . . . . 194,269,878.80 2,150,331,721.98 Liabilities other than those above stated . * • , , 140.29 5,336,047,013.58 Chairman of the Board Leopold E. Block Chairman, Finance Committee, Inland Steel Company Augustus A. Carpenter Director, Iiills-McCanna Company J. D. Farrington President, Chicago, Rock Island and Pacific Railroad Company James B. Forgan Vice-Chairman of the Board Walter M. Heymann Vice-President Henry P. Tsham President, Clearing Industrial District, Inc. James S. Knowlson Chairman of the Board and President, Stewart-Warner Corp. Ilomer J. Livingston V ice-President Hughston M. Me Bain Chairman of the Board, Marshall Field & Company Bentley G. McCloud President James Norris President, Norris Grain Co. John P. Oleson Albert IT. Wetten R. Douglas Stuart President, A. H. Wetten & Co. Vice-Chairman, Quaker Oats Company Banker Harry A. Wheeler George G. Thorp Irvin L. Porter Banker Madison, Wis. Vice-President C. J. Whipple Louis Ware Edward G. Seubert Chicago, 111. President, International Minerals «V Chemical Corp. MEM BER N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FE DE R A L Chairman of the Board, Hibbard, Spencer, Bartlett & Co. DEPO SI T I N SU R A N C E CORPORATION John P. Wilson Wilson & M c11vaine Robert E. Wilson Chairman o f the Board, Standard Oil Company (Indiana) Robert E. Wood Chairman of the Board, Sears, Roebuck and Co. -rJ 7 !h>ar E d ito r DES M OINES O ldest 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. "Com ments Very Pertinent" “ Just read your article in the N orth western B anker addressed to Herbert Hoover, ‘A Great Statesman and American.’ “ Your comments were very pertinent. In my opinion he is one of the greatest states men of all times besides being a very suc cessful business man and a great humani tarian of world wide fame. “ I have just recently read the new book on the 'Life of Ex-President Herbert Hoover’ by Eugene Lyons. It is in most public libraries now and should be read by all. “ He is of Lincoln caliber and has been active internationally in many more direc tions. “ Your articles in the N orthwestern B anker should also be generally read be cause they are with the 'van’ of the thinkers of America. The N orthwestern B anker is quite a solace to an old ex-banker and I am very grateful for it.” W. 0. Reed, Pasadena, Calif. On th e C o ver The show, “ Streetcar Named De sire,” has been very popular, but in San Francisco the “ desire for a streetcar” has been even more popu lar, especially if it is a cable car, as many institutions have been spon soring these famous landmarks since a recent threat that they might be taken out of existence. The American Trust Company of San Francisco is sponsor of one of the famed cable cars, and the cover picture on this December N orth western B anker shows the gala christening event that took place during the recent A.B.A. annual con vention. Pictured left to right are: Wil liam A. Marcus, senior vice presi dent, American Trust Company; Mrs. F. Raymond Peterson, wife of the A.B.A.’s new president; Mrs. Evans Woollen, Jr., wife of the re tiring A.B.A. president (with the “ christening water” in her hands); James K. Lochead, president, and Edwin V. Krick, senior vice presi dent and cashier, both of American Trust Company. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis e 54th Year • No. 749 IN THIS DECEMBER, 1949, ISSUE E D IT O R IA L S Across the Desk from the Publisher— ........—......................... -10, 11 FE A T U R E A R T IC L E S Dear Editor ------------- — ......... - ............ .... On the Cover.................................................................................... Frontispiece—Christmas ..... ..........................— ..............—-....... What Do You Wrant from Your Correspondent Bank?................. .......................................... A N o r t h w e s t e r n B a n k e r Survey 14, Discuss Politics, Gold Standard and Reserve System at San Francisco—A.B.A. Convention Story and Pictures---------------............................................................ Clifford DePuy 16, 17, 18, 4 Factors That Make a Bank Modern...................... John Carlander Bankers You Know—James E. Shelton............................................ Is It Possible to Place Value on Corporate Stock Having Par Value?—Legal Questions and Answers......................... ............. 7 7 13 15 19 20 23 24 BONDS AND IN V ESTM EN TS Market for High Grade Bonds Will Continue Steady................. ____ __ ___________________ ___ ____ __ _____Raymond Trigger 33 IN SU R A N C E A.B.A. Insurance Committee Urges Rigid Control of Operations.-.- 37 S T A T E BAN KIN G N EW S Minnesota News ............................. ................................................. Women’s Finance Forum aSuccess........................................... Twin City News..................................... South Dakota News....................................................... Bank Management Clinic Is Outstanding Success ........ ...... Sioux Falls News.................................. ;.................................... North Dakota News........................................................................... Nebraska News ..................... .............. ....................... ........... ...... Omaha News ............................................................................... Iowa News .... Des Moines News....................................................................... 41 41 42 47 47 47 49 51 52 57 62 IN T H E D IR E C T O R S ’ ROOM A Few Short Stories to TellYourFriends...................................... 66 Conventions ...................................................................................... 66 N O RTH W ESTERN BAN KER 527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163 RALPH W. MOORHEAD Associate Publisher CLIFFORD DE PUY Publisher HENRY H. HAYNES Editor ELIZABETH COLE Advertising Assistant PAUL W. SHOOLL Field Representative BEN J. HALLER, JR. Associate Editor HAZEL C. STEPHENSON Auditor MALCOLM K. FREELAND Associate Editor SADIE E. WAY Circulation Department JOSEPH W. FRANKS Field Representative NEW YORK OFFICE Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806 IMUrray Hill 2-0326 DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review, Iowa-Nebraska Bank Directory. N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 8 a widely used Chase " 09926870 ' '“ Supplying credit inform ation to our correspondent banks for their ow n use and to assist them in answering inquiries from their customers is one o f the many useful services we provide. W e endeavor to give prom pt, accurate and com plete replies to your credit inquiries. T h e department is staffed by experienced officers, investigators and analysts with facilities for gathering Credit Department Management and collating the latest available inform ation relating to trade conditions or the financial standing o f com panies and individuals in this country and abroad. Other Chase services which correspondents use extensively are: In form ation an d ad vice re g ard in g in vestm en t portfolios S a fe k e e p in g of secu rities Collection of ch eck s, d ra fts, and o th e r b an k docum ents Participatio n in local lo an s w h en d e sire d by co rre sp o n d e n ts Central Tile Index L e tte rs of C re d it for issuance by co rresp o n d en ts Sp ecial w in do w and lobby e x h ib its from the C h a se Collection of M o neys of th e W o rld — a v a ila b le for a n n iv e rs a rie s and special occasions A w ide ra n g e of p e rso n al and in ciden tal se rv ice s THE CHASE NATIONAL BANK OF THE CITY OF NEW YORK Credit Investigators N o r t h w e s t e r n B a n k e r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 Please accept our Sincerest Good Wishes for a Merry Christmas and a Happy, Prosperous New Year. I o w a ’s Friendly Bank CENTRAL NATIONAL BANK & Trust Company • Des Moines, Iowa M em b er F e d e ra l D e p o sit In s u ra n c e C o rp o ra tio n N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 10 With this latter statement we do not agree. Why, Mr. Sproul, should the Federal Reserve Board have control over bank reserve require ments ? Furthermore, you say that, “ all commercial banks should be required to come under the au thority of the Federal Reserve System.” Obvious ly, this could not be done unless a new law was passed similar to that proposed by Thomas B. McCabe, Chairman of the Federal Reserve Board, which law if passed would give the Federal Re serve Board power to regulate the reserve require ments of all the non-member banks in the United States. Again, we say, Mr. Sproul, we think this dis agrees with your statement quoted above in which you say you were opposed to “ undue centraliza tion of control of the Federal Reserve System by the Board of Governors at Washington.” No wonder many banks in the nation oppose your views, and the N orthwestern B anker cannot understand why you advocate decentralization at one point and increased control at another. Across the Desk From the Publisher (.D&jcUi Qjuudqsi d iw w ld (R. V Y h jd m a : Communist Trial Judge, New York (D sjoa (U lan Sfvw ul: President, Federal Reserve Bank of New York We listened with a great deal of interest to your address before the American Bankers Convention in San Francisco when you “let them have both barrels” and expressed your opinion on several 'subjects which have been under controversy in the minds of many bankers throughout the country. In one part of your remarks you said, “I have been as one with many of you in my opposition to undue centralization of control of the Federal Reserve System by the Board of Governors in Washington.” Then it seemed to ns, Mr. Sproul, that you reversed yourself when you discussed reserve requirements when you said, “ The Federal Reserve System is charged with the responsibility of formulating and administering national credit policy. It does this chiefly through its influence upon the cost and availability of bank reserves. This is a proper exercise of Federal power; and its point of incidence is upon the commercial banks of the country because only they, among all of our financial institutions, have the ability to add to or subtract from the money supply of the nation. I question whether there is good and sufficient reason for exempting any commercial banks from a minimum participation in this national under taking.” N o r t h w e s t e r n B a n k e r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The conviction of the 11 Communists, whose 9months’ trial ended in your court recently, met with universal approval by every loyal American citizen. If American citizens had been in Russia trying to undermine the Soviet government, they would have received no 9-months’ trial and probably not even a 9-days’ trial, but would have either been put in jail at once, or banished into the “ great unknown” from which so many of their own citizens have never returned. Do you realize, Judge Medina, that a very high compliment was paid to the United States by these double-crossing Communists who have devoted their efforts to undermining our own democracy? After you sentenced them, they appealed to the U. S. Circuit Court and were given freedom on bail pending appeal to the U. S. Supreme Court next spring, providing they could put up $260,000 for that purpose. What do you think they used for money? Was it French francs, the official rate of which is 348 francs for each U. S. dollar? Was it Italian lira, the rate for which is 624 lira per IT. S. dollar? AVas it Mexican pesos which are selling for 8.64 per each U. S. dollar? Was it Chinese Jin Min Piao now quoted at 9,000 per U. S. dollar in the black market? 11 Or was it Russian rubles of which it takes 5.3 to equal 1 good American dollar? No, it was none of these, Judge. It was $260,000 of U. S. government bonds, and these were posted by the Civil Rights Congress which the attorney general of the United States has listed as a subversive organization. So the same treasonous bunch of crooks, who want to do away with our form of government established here 170 years ago, appeared in a Fed eral Court in New York with bonds of the gov ernment which they have been attempting to destroy. This, we say, is the finest compliment they could pay to the U. S. A. (D&Wi dLcVwsuj J/. ^JLLnd&AAxm: Director Reconstruction Finance Corporation According to recent testimony of yours before a Congressional Committee, the Reconstruction Finance Corporation has loaned more than half of its present outstanding fluids to big business rather than endeavoring to assist small business. In reading your testimony, Mr. Gunderson, you seem to favor this policy as you believe it would keep the larger concerns going, and they in turn would keep more people employed. Some of the facts brought out in your testimony were as follow s: 1. Outstanding R.F.C. business loans to indus trial and commercial enterprises at the pres ent time are $433,000,000. 2. Ninety (90) per cent of loans are under $100,000 and 65 per cent under $20,000. 3. Total amount loaned to Kaiser Enterprises is now $140,000,000 out of total loans by R.F.C. of $433,000,000 or 32 per cent plus. Kaiser-Frazer loans total $44,000,000 and Kaiser Steel owes R.F.C. $96,000,000 or a total of $140,000,000 for both organizations. 4. Lustron Corporation has borrowed $37,000,000 from the R.F.C, 5. Loans to 9 companies total $256,000,000 out of total R.F.C. loans of $433,000,000. In referring to the Kaiser loan, you said, “ Some of our people, very frankly, have doubts about the future of Kaiser-Frazer Company and its auto mobiles. However, if I did not believe that they had a good chance of being successful I wouldn’t have, personally, worked so hard to try and help them. I think perhaps if the private money mar ket turns around a little bit they can refinance this whole thing privately in another year or two.” When questioned about the Lustron Corpora https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tion Loan, you said, “ I do not have the same con fidence about the Lustron Corporation commit ment.” In commenting on your testimony, Senator Paul H. Douglas, Democrat of Illinois, said, “There is a general fear that the Lustron loan will blow up, and while we wish Mr. Kaiser well, we are not at all certain that that is going to come through. If those 2 loans should go sour, a very heavy blow would be struck at the R.F.C." You did not seem to agree with Senator Doug las in your additional testimony, first because you felt that the Kaiser-Frazer loan would be repaid, and second because the money for the Lustron loan was transferred to the R.F.C. from the Vet erans Emergency Housing Act funds under a di rective of Congress. Let’s hope, Mr. Gunderson, that both of these loans are repaid to the Reconstruction Finance Corporation, but we can tell you without any fear of contradiction, that these 2 loans have caused a great deal of unfavorable comment about the Reconstruction Finance Corporation and about the kind of loans you are making. Both the Kaiser and Lustron loans have been “ tainted with politics” and that is not good pub licity for your corporation. The N orthwestern B anker realizes that many times there are loans made in combination with the R.F.C. and with banks participating in the loans. We do not hold any special brief that the R.F.C. should primarily make loans to small business, because we believe that private banking institu tions should cover requirements of all legitimate small corporations which may need funds for their operations, but it does seem to us that in connec tion with the Kaiser and Lustron loans, they rep resent too great a share of your total loans out standing, because as indicated in paragraph 3 above, 32 per cent of your total outstanding loans are now represented by 1 loan of $140,000,000 to the Kaiser Enterprises. In the final analysis, any losses of the R.F.C. are either made up from the surplus of the cor poration or from money received from the tax payers, and we need not remind you that the public is being taxed about to the limit under the present spendthrift administration. N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 12 A GOOD INVESTMENT because...it handles In a matter of seconds, this National Multiple-Duty Account ing Machine changes from any one of these jobs to any other: • • • • • • • • National provides a complete line of accounting machines to meet every need of every department of every bank, large or small. They're all de scribed in this handsomely illustrated 64-page free booklet, which your local National representative will be glad to give you. individual ledgers general ledger daily financial statements trust records regular mortgages F.H.A. mortgages loans and discounts payroll Its removable form bars are changed quickly . . . easily. It will handle any posting work, in any bank, better and faster. It can be operated by anyone who can type and operate an adding machine. National Accounting Machines offer an efficient, mechanized answer to every problem of bank accounting. Out of the country’s 100 largest banks, 94 use Nationals . . . as do thousands of smaller ones. (ÿ m u o n c U * THE NATIONAL CASH REGISTER N o r t h w e s t e r n B a n ke r, D e c e m b e r , Ì9 4 9 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C O M P A N Y , D A Y T O N 9, O H I O ACCOUNTING MACHINES CASH REGISTERS • ADDING MACHINES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 W hut Ho You W o n t Froto Your F orrr spouHouli? Â N O R T H W ES TER N Survey HE handling of transit items is the T most important service the city bank performs for its correspond ent customers, according to a survey just completed by the N orthwestern B anker among several thousand banks in the middlewest. The percentage figures and other in formation appearing in the accom panying charts were compiled from questionnaires received from country bankers. To obtain unbiased opinions, bankers were requested not to sign their names nor give the name of their bank. In addition to the information incorporated in the charts, bankers were asked to comment on the quality of service they received from their correspondent, making any sugges tions they desired. These comments appear at the conclusion of this article. In analyzing 'this chart, bankers’ preference of the several items listed was determined by the “point” system, and the replies to each item were “weighted.” Bankers were asked to list these items first, second, third, etc., in the order of their importance. The “weighted” system of analysis thus recognizes the value of second, third, etc., choices, and gives a true picture of the several selections from an import ance standpoint. As noted above, “transit service” with 849 points is the most important service city correspondents render, and “safekeeping” runs a close second with 711 points, while “investment” comes third. In a similar survey made several years ago, “investment service and information” stood first in impor tance, according to the country bank ers. “Personal services,” “collections,” and “carrying excess loans” are in fourth, fifth, and sixth place in order of importance, with a spread of only 21 points. That city banks are giving their country correspondents an excellent brand of service is indicated in Chart 2, where 68 per cent reply that “Pres ent service is entirely satisfactory.” The next six percentages, in which are incorporated suggestions for improve ment in service, are quite small, pos sibly meaning that these banks have operating conditions peculiar to them- Chart No. 1 What Is The Most Important Service Your City Corre spondent Now Renders You? Transit Service 849 points 711 points 462 points "Personal Services" ^ -I 335 points Collections I 330 points Carrying Excess Loans H j 314 points Credit Information 277 p o ints Advice on Bank Operations m 252 points Foreign Department Service I 205 points N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKER selves, which could never apply to the profession as a whole. This might also be the case in the “miscellaneous suggestions” of 8 per cent. These mis cellaneous suggestions are as follows: “Do better what they are doing.” “By being better bankers than we are.” “Daily returns on transits.” “Supply a simple code for wire or ders of coin and currency.” “By restricting number of accounts from one city or town.” “Help us get more chain store busi ness.” “Keep us advised on new methods of financing.” “Give more predictive information.” “Should have more uniform debit and credit slips, charge exchange same day same way.” “Help on the movement to clear all checks at par.” “Be more liberal on their direct loan services.” “Don’t undercut us on interest rates.” What Country Bankers say about t h e i r correspondent service. “Excellent,” Very good,” Most satis factory,” “Good and friendly,” are the comments appearing in answer to this question from the majority of those replying. With few exceptions, the country banker is perfectly satisfied with the quality of his correspondent service. Here are some of the comments in detail: “We have found personal service on excess loans lines the most valuable service rendered us by our correspond ent banks.” “We always welcome visits by rep resentatives of our correspondent banks. We learn considerable from them, and they in turn are given an opportunity to get reliable information concerning the respective localities which they visit. They are always in terested in observing crop conditions, as such affect banking. These banks employ men of high calibre, and they learn to know the country banker and how we operate our shops.” > % c « T 15 Chart No. 2 Name One Or More Ways In Which You Think Your Correspondent Can Serve You Better. Present Service Is Quite Satisfactory 68% Make Suggestions on Our Bond Holdings and Maturity Schedules IH H 7% Be More Informed About Our Operations H i 4% don’t even send us duplicate charge slip but we have to wait until we get our statement and then enter it on our books after the 1st, so it always shows on the reconcilement state ment.” • “ The advice they give us on buying or selling bonds is usually the opposite of what they themselves are doing. When they advise one policy, it is usually profitable to proceed in the opposite direction.” More Personal Contact By Representatives Hi 4% “Concentrate on balances only — calls made in “glad hand” fashion lack organized planning in helping the country banker better his service. How would you answer the question W hat can we do for you?’ ” ? Carry Excess Lines, and Study Financial Statements of Excess Borrowers H 3% Hold Schools of Instruction for Country Bankers ■ I 3% “Our correspondents have served us very well, and usually beyond the limits our problems demanded.” Operate a Training School for Bank Help, and Farm Them Out to the Small Banks ■ 3% Miscellaneous Suggestions (See Article for Details) “ They do everything we ask them for, but they don’t originate as many ideas or pass new ideas on to us, as we would like.” “We like to have a representative call on us at intervals, so that we can become better acquainted with them, and they with us on our own floor. This way we can both cooperate to mutual advantage.” “Generally good service is rendered. If the country banker will let his hair down and really discuss his problems with the correspondent bank, the re sults would be more helpful.” “Excellent—we have attempted to select correspondent banks whose offi cers personalize their service.” “Most correspondents don’t make enough effort to educate the small banks as to the many services they can render them.” “ The Federal Reserve Bank supplies all our needs.” “ One of our correspondents is very superior—the others are mediocre.” “The city correspondent renders a very good and satisfactory service. Our correspondent banks are now do ing a swell job, and we have no com plaints to make. We appreciate their services and are very grateful to them for what they are doing for us and for what they have always done for us in the past.” “The general run of contact men sent out have no banking experience, and merely take up our time asking https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for business. We would like to see ‘top’ men less often.” “Banks should be uniform and send out exchange statements about the 25th of each month, so that we could clear the charge on our books before the last day of the month. Some banks “ I believe the trouble with most country bankers is not asking our cor respondents to help us. They can’t know our problems if we don’t tell them. Since I have learned to ask, I have found them very helpful and considerate.” Chart No. 3 What Is The Most Unusual Service You Have Ever Received From A City Correspondent? Obtaining football tickets— Hotel reservations, and tickets for entertain ment when we were in their city— An officer of the correspondent bank person ally spent several days in our bank perfecting our cage system— Succeeded in the collection of what we con sidered an absolutely worthless check— Analyzed our operations and physical set up, with suggestions for changes and improve ments— A representative hauled several hundred pounds of silver to a large city, thus saving bank the express charges— Helped to obtain badly needed equipment when our regular supplier had refused— Got a job for our president's son, which we considered a most unusual service— Sent a man to assist in operation of the bank when we were short of help, due to an acci dent— Located the desired design and color of lino leum for our president's kitchen cabinet top— Two large banks where we had no account made available their experience and know how in connection with the Reserve Method for Bad Debts— Personal assistance on a customer problem when the latter was traveling in Europe— Helped us to plan our new bank building— Got tickets for us to Spike Jones' City Slick ers— Absorbs exchange charges, thereby permit ting the country bank to make a little money, too-— Supplied us with one of their personnel to act as cashier while our own cashier was on vacation— Assisted in obtaining a teacher for our local school district— Brought us cash by automobile when our safe could not be opened— Helped us to obtain a pastor for our church— Made a three-day survey of our bank opera tions, with resultant suggestions. N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 ALL SECTIONS of the country were represented at the American Bankers Association’s 75th annual convention in San t rancisco last month. On this and following pages are pictures of a number of those in attendance. Above, reading from left to right in each photograph, are: Left—-Paul D. Dodds, vice president, Security-First National Bank of Los Angeles; W. H. Taplin, Dwight W. Chapman, Charles C. Simons, and Lester H. Empey, vice presidents of the American Trust Company, San Francisco. Center—Bruce W. McPheeters, assistant vice president and Louis E. Friese, vice president Security-First National Bank of Los Angeles, and Lloyd L. Austin, vice president and man ager Seventh and Grand Branch, Security-First National Bank of Los Angeles. Bight S. E. Coquillette, chairman of the board; John T. Hamilton II, president, and Marvin R. Selden, vice president of the Merchants National Bank, Cedar Rapids, Iowa. Risenss l*o/#7/V% HoStanda R eserve System at San Franeiseo By C L IF F O R D DE PUY Publisher The 4,300 bank ers attended the 75th Annual Convention of the American Bankers Association at San Francisco which, from a program standpoint, turned out to be a “two-act” perform ance put on by the “Sproul Brothers,” with additional high grade performers appearing before the footlights during the three-day session. The first Sproul to appear, was Robert Gordon Sproul, president of the University of California at Berk eley, and with whom all the bankers agreed when he said: “Nowhere is the A p p r o x im a t e l y philosophy of communism more harm ful than in a university, for it is a philosophy of ironclad orthodoxy, which circumscribes every field of the intellect, whether in science or eco nomics or art, with an adamantine au thoritarianism. In such barren soil there can be no flowering of the hu man spirit; it can only wither and die. Four hundred years ago, Galileo shook the world with the question: AVho is willing to set limits to the human in tellect? Well, the Communist Party is not only willing to do it; they are eager to do it. What place in a uni versity can be given appropriately to such purblind fanatics as these? Why should our institutions offer hospital ity to those who use a false and brutal hope to persuade the young and gull ible to sign away their birthright? Why should they cooperate, even pas sively, in a program of insidious in filtration of the free governments of the world?” The last speaker of the program was Allan Sproul, president of the Federal N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Reserve Bank, New York, who gave the bankers “plenty of hell” because many of them opposed further con centration of power in the hands of the Federal Reserve Board. The only paragraph in his speech which received applause from the bankers assembled in the Geary Thea tre was when he discussed “Corre spondent Bank Relationships” and said: “Somehow there has grown up a feeling in some places that we in the Federal Reserve System are out to undermine the network of corre spondent bank relationships which you have built up over the years. Every time we suggest some change in the method of assessing reserve requirements, or make some minor improvement in our check collection system, or in our methods of provid ing coin and currency, or in some other detail of our operations, the question seems to be raised. “I can assure you that these things are suggested or done in an effort to improve the efficiency and economy of our operations in terms of the whole banking system, the business com munity, and the general public. There is no hidden purpose. We recognize that there are some things which cor respondent banks can do better than we can, and we are glad to have them perform these services. At the same time, we would caution them against competition in providing services which really do not pay their way, and remind them that there are some things which, perhaps, the Federal Re serve System can do better than they. Surely here is an area, if our motives N O R T H W ES TER N BANKER he reasonably pure on both sides, where there is no need for friction between us.” Following Allan Sproul’s remarks, Evans Woollen, Jr., president of the Association, presented a statement “in rebuttal” to some of the remarks of Mr. Sproul, and said: “We do not like to disagree with the Board, but some times we are compelled to do so. Per haps the Board has been inclined on occasion to put too much dependence on law and regulation. This Associa tion has always emphasized selfdiscipline and education. You know, we Americans sometimes get the im pression that a problem is solved merely by passing a law. It might be that Av e have too many laws and regu lations now.” F. Raymond Peterson, president of the First National Bank and Trust Company of Paterson, New Jersey, was elected president of the American Bankers Association; James E. Shel ton, president of the Security-First National Bank of Los Angeles, was elected vice president, and Glenn L. Emmons, president of the First State Bank, Gallup, New Mexico, was elected treasurer. William B. Gladney, president of the Fidelity National Bank, Baton Rouge, Louisiana was elected presi dent of the national bank division. Claude E. Bennett, president of the Tioga County Savings and Trust Co., Wellsboro, Pennsylvania, was elected president of the state bank division. Arthur W. Sands, president, Western State Bank of St. Paul, Minnesota, was elected to the executive committee of NEW YORK GUESTS—In this group (left to right), from the country’s third largest bank, are: Timothy J. Kelly, assistant cashier; Jacob Magenheimer, second vice president; Mrs. Larry Freer, whose husband is the San Francisco rep resentative of the Chase National Bank; Walter S. Jelliffe, vice president, and Jacque C. Frost, second vice president, all of the Chase National Bank, New York City. the division for a three year term, and Ben S. Summerwill, president of the Iowa State Bank & Trust Company, Iowa City, was elected to the executive committee for a one year term. John W. Remington, vice president and trust officer of the Lincoln Roches ter Trust Company, Rochester, New York, was elected president of the trust division. Thomas H. Beacom, vice president, First National Bank of Chicago, was elected to the executive committee of the division for a threeyear term. Andrew Miller, executive secretary of the Washington Bankers Associa tion, Seattle, Washington was elected president of the state association sec tion and Carl G. Swanson, secretary of the Nebraska Bankers Association, TWO IOWANS—Ralph Eastburn, (left), presi dent, Iowa State Bank & Trust Company, Fairfield, Iowa, and Carl L. Fredricksen, president, The Live Stock National Bank, Sioux City Iowa. Omaha, was elected to the executive committee of the section. Rowland R. McElvare, senior execu tive vice president of the Bank for Savings, New York, was elected presi dent of the savings mortgage division. Wendell T. Burns, vice president, Northwestern National Bank, Minne apolis was elected to the executive committee for the term expiring in 1950. * * * The Diamond Anniversary Conven tion of the A.B.A. will be held next year in New York City, and the dates are September 24-27, 1950. * * * * AVilliam A. Marcus, senior vice presi dent of the American Trust Company of San Francisco, and retiring presi dent of the savings and mortgage di vision of the A.B.A., believes that: MINNESOTA VISITORS—From the Twin Cities to the A.B.A. convention came (left to right): Richard S. Banfield and M. O. Grangaard, vice presidents, First National Bank, Minneap olis; Lee Madland, president, Capital National Bank, Sacramento, California, and Charles E, Corchran, assistant vice president, First National Bank, Minneapolis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “Great harm can come to the veteran, the taxpayer, and to the nation itself by the continued congressional legis lation aimed at providing loose credit, at seeking the votes of special classes by prescribing unrealistically low in terest rates, or by urging further ex pansion of government activity in the field of private enterprise. There is absolutely no need of direct govern ment lending as proposed in the Sparkman-Spence Bill now before Congress. There is no more reason to fix the in terest rate on real estate credit by gov ernment decree than to have Uncle Sam regulate the price of neckties or canned peaches.” U. S. N a tion a l B a n k H ea d s M e e t * * * John AV. Snyder, Secretary of the United States Treasury, didn’t seem to be worried about a 5 billion dollar deficit for the next fiscal year of the government ending June 30, 1950 be cause, in his speech to the convention, he said: “The financial situation could scarcely he in a sounder position. As you know, bankers and businessmen alike have taken precautions that credit did not become over-extended during the inflationary period. But as inflationary pressures diminished, credit was immediately available in needed quantities. “Therefore, starting with a basically sound present situation we face the future with many demands which in dustry has thus far been unable to meet.” * * * Lewis G. Castle, president of the Northern Minnesota National Bank of Duluth, visited his daughter, Mrs. Landon Corwin at Carmel, California, before attending the A.B.A. Since he is also a very enthusiastic HOSTS—Two bankers who helped make A.B.A. convention days in San Francisco pleasant ones for the thou sands of visitors are: L. E. Town send, (left) vice president, and E. A. Mattison, vice president, Bank of America, San Francisco. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRESIDENTS of five of the seven members of the country’s newest, most exclusive banking organization are pictured above. They represent United States National Bank’s in their respective home cities. There are only seven in the nation bearing this title. A. J. Peterson, president of the U. S. National Bank of Galveston, Texas, was interested in arranging for the “ organization and first annual convention of the United States National Banks of the United States.” Since the law prevents any new banks being chartered with the title “ United States,” the members of this organization will continue to be seven in number. Shown in the above picture, as they held their first meeting at the recent A.B.A. convention, axe (left to righ t): Seated—E. C. Sammons, Portland, Oregon, and Mr. Peterson. Standing— Melvin N. Wilson, San Diego, California; Ellsworth Moser, Omaha, Nebraska, and Thomas M. Dines, Denver, Colorado. H. P. Cassidy and F. C. Martin, presidents of United States National Banks in Red Lodge, Montana, and Johnstown, Pennsylvania, respectively, were not repre sented at the meeting. SIGHTSEERS—Seeing the coast city’s many landmarks together were: Mrs. A. G. Sam, (left) wife of A. G. Sam, (center) chairman of the board, First National Bank, Sioux City, Iowa, and Mrs. Clifford De Puy, wife of the publisher of the Northwestern Banker, at the dock near Fisherman’s Wharf, San Fran cisco. golfer, he put on a “golf marathon” and played a different golf course each day for five successive days. The courses were: Pebble Beach, Peninsula Country Club, Cypress Point Club, Menlo Country Club, and Burlingame Country Club. The official scores were not reported, but it is understood that Mr. Castle “missed very few putts.” * * * News and Views of the A.B.A. There were many delightful enter tainment occasions furnished by the various banks, and these were started by the luncheon Monday noon in the Empire Room of the Mark Hopkins Hotel and given by the Merchants National Bank of Cedar Rapids, Iowa. The official hosts for this interesting gathering were: S. E. Coquillette, chairman of the board; John T. Ham ilton II, president, and Marvin R. Selden, vice president, of the Mer chants National Bank. CALIFORNIANS—Some host-state bankers from down the coast (left to righ t): Mark G-. McMahon, vice president, California Bank, Glen dale; Walter E. Allander, assistant vice presi dent; C. C. De Pledge, vice president, and T. E. Ivey, Jr., vice president, all of the California Bank, Los Angeles. The Bank of America entertained its guests at the Aquatic Park with cock tails and luncheon. Following this, E. A. Mattison, executive vice presi dent, Harry R. Smith, vice president, and Li. E. Townsend, vice president, sponsored a special boat ride for mem bers of the press and took them for a “Cruise” on a fire boat in San Fran cisco Bay. When the boat passed close to Al catraz Island, a big sign said, “WARN ING, KEEP OFF,” and judging from the number of inmates, some of the boys forgot to read the sign. As one of the bankers remarked, “It only takes 10 minutes to get over to Alcatraz, hut it frequently takes 25 years to get hack.” * * * The Northern Trust Company, of Chicago entertained its friends at MORE NEW YORKERS— Visitors from the country’s financial center included (left to right) : Joseph S. Moss, Jr., Nolan Harrigan, and William F. Doyle, vice presidents, Irving Trust Company, New York City. breakfast each morning at the Bo hemian Club in San Francisco, where Edward Byron Smith, executive vice president and his associate officers, acted as hosts, including Alan R. Kidd, Lanning Macfarland, L. L. McArthur Jr., Charles M. Nelson, John A. Pros ser, Laurence B. Robbins, and Charles B. Weaver, vice presidents. * * * The largest affair was given by the Central Hanover Bank and Trust Com pany of New York as a cocktail party in the Garden Court of the Palace Hotel. William S. Gray, president of the bank, had several members of his very fine official staff with him, includ ing among others, Alfred Ellinger, M. B. Hopkins, and Porter L. Willett, vice presidents. UPPER MIDWEST— Snapped between ses sions was this group (left to righ t): Arthur W. Sands, president, Western State Bank, St. Paul, Minn.; Walter K. Johnson, vice president, Farm ers State Bank, Estelline, South Dakota, and Ora G-. Jones, Jr., vice president, Goodhue Coun ty National Bank, Bed Wing, Minnesota. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20 4 Factors That M a k e a t h in k M o d e r n Your Customers Like to Do Business With An Organization That Keeps Up to Date By JO H N C A R LA N D ER President State Bank of Faribault Faribault, Minn. M OST of us in small countrybanks inherit certain methods and procedures which have been used in our banks over the years and have a tendency to be come more or less of a habit. No im agination is exercised to attempt to improve the method or procedure by a more progressive or a more modern way of doing that particular job. Coun try bankers have certain adjustments to make with respect to our ideas on modern methods, schooling our selves to be desirous and anxious to learn the better method. Oftentimes this can be accomplished by the at tendance at meetings and also by visiting other banks of similar size and location. Many of us are con fronted with the lack of adequate earnings to provide the means of pur chasing new equipment and, there fore, because of necessity must have some definite objective with respect to our operation to be accomplished over a number of years. After a con crete plan is agreed on, experience proved in our case, that the objective can be reached usually in a lesser number of years t h a n originally planned. In an ever changing econ omy no plan can be relied upon to be used indefinitely and, therefore, in our organization we are constantly mak ing surveys and searching out ways and means of improving our methods, although we feel that our method of operation is quite satisfactory, based principally on the fact that our system has been adopted by many banks in our section of the state upon recom mendation of the bank examiner. Cer tain basic fundamental principles we believe to be essential in obtaining our objective are given serious consid eration in our over-all planning. ment and the opportunity it affords for the enlargement of the banking quarters. No business, to my knowl edge, is more dependent upon the pub lic for its working capital than is the bank. Eye appeal, therefore, cannot be over-emphasized, and by keeping the bank neat and orderly, and by us ing unusual decorations in the bank ing quarters will prove to be most interesting, not only to the customers, but to the employes as well. Correct appointments smack of efficiency and present a pleasing appeal to the pub lic. N o r t h w e s t e r n B a n ke r, D ecem b er, 1949 % A Procedure JO H N C A R L A N D E R Heads a modern bank in Faribault, Minnesota 3. The best possible working condi tions for bank employes. 4. Tbe need for continued alertness in adopting new banking educational methods, and the warding off of non bank competition. There is an old adage that “The customer’s first impression is the last ing impression,” and, therefore, the physical appearance of the bank build ing, both inside and outside, is de signed to give eye appeal. Most coun try banks own their own premises, the quarters are relatively small, and there is no possibility of acquiring ad ditional land for expansion, but im provement can be made on the exteri or of the building without a large expenditure to give it the appearance that it is well kept. With the assist Four Factors For a bank to be modern in this ance of a good bank architect, there modern age I feel there are four fac is no limit as to what can be done with tors that must be taken into consid respect to the rearrangement of the eration: interior of the building to relieve con1. An attractive banking house. jestion in the banking quarters. Most 2. Up-to-date banking equipment and of us give no consideration to the pos procedure. sibility of the usefulness of the base https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis y There are a few operations that should be a must in any bank, regard less of size, based on experience. Each teller should definitely operate with his own cash, and the method of sev eral tellers operating out of the same cash is as obsolete today as the horse and buggy of yesteryears. A central proof system can be established and does not necessarily necessitate the purchase of expensive equipment to operate. This system of procedure is a definite check on the tellers, and is so easily operated that it can be in stalled in the smallest bank. A system recently installed, at what we considered a substantial cost, and thrills me the most, is the installation of tellers’ machines, whereby we have replaced the old passbook and now issue registered receipts. Without ex ception, this new system has met with unanimous approval by our custom ers, and our tellers find that the win dow work can be speeded up to a degree where three customers are served in the time it took to serve one customer when we were using the old passbook. It is almost unbeliev able the time that is saved in balancing the till at the end of a day’s work by the use of these machines. We oper ate on the premise that you need good equipment to do efficient work, and that no method will work unless the entire staff is acquainted with the ob jective and gives entire cooperation. (Turn to page 39, please) i. « Y 21 io t i B est tJou M e rry , êentlem eit X + https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Christmas Carolers of The Omaha National Bank join with the rest of the bank staff in wishing all of you ìì K e r y M e r r y C h r i s t m a s N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 22 How to get More Business through Correspondent Service M any banks throughout the country have developed additional profitable business by making broader use of the wide range of services that Irving Trust Company offers its correspondents. Your full participation in Irving’ s correspondent banking pro gram will greatly increase your own facilities for serving the varied business needs of your customers here and abroad. We would welcome the opportunity to tell you how you can use our services most effectively to develop better customer relations, build more income-producing business. OWE W A LE S T R E E T N EW Y O R K Capital Funds over $117,000,000 • 15, N . Y. Total Resources over $1,100,000,000 R ichard H. W est, President W illiam N. E nstrom , Chairman of the Board Domestic Banking Division N olan H arrigan , Vice President in charge Serving the West H. M iller L awder , Assistant Vice President W illiam F eick , Vice President M EM BER N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL D E P O S IT IN S U R A N C E C O R P O R A T IO N 23 R a n k ers Yon K ä m e Jam es E.She Ihm President Security-First National Bank of Los Angeles Los Angeles, California “He is highly skilled in meeting and handling people” HEN James E. Shelton, president of the Security-First National Bank of Los Angeles, was elected vice president of the American Bankers Association, tire A.B.A. was extremely fortunate in gaining the services of a man whose business experience has been so diversified. In the daily oper ations of his own bank and in the varied functions of state and national banking groups, with which he is so active, he has successfully met the many problems confronting top level management. Mr. Shelton’s entire 30-year career as a banker has been spent with the Security-First National Bank. Prior to 1919 he was engaged in the private practice of law and as trust counsel for seven years. Mr. Shelton was born at Colusa, California, on November 6, 1886, attended elementary school in Fresno, high school in San Jose, and was graduated from Stanford University with two degrees, an A.B. in 1910 and J.D. in 1912. Mr. Shelton has talents in many lines but the one that has probably done more than any other to bring success his way is his ability as a negotiator. He is highly skilled in meeting and handling people. In an W https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a tm o s p h e re of friendliness, good humor and willingness to see both sides, he daily finds solutions for problems that baffle others. His ob vious sincerity and honesty of pur pose disarm opposition. His standard procedure is to bring the problem out in the open and set it forth in such bold relief that the answer is obvious. If tempers rise, he is not above a pun or a quip, often at his own expense, to smooth the troubled waters. President Shelton’s method with subordinates in the bank is extremely simple. He loads them with responsi bility, then gives them enough author ity to carry it. Naturally the subordi nate strives mightily to prove the president’s judgment is not misplaced. The net result is exactly what Mr. Shelton wants— a careful, cautious, intelligent operation, without waste of other people’s time. Only methods such as this permit him to carry out his many responsi bilities. His interests in the bank are as broad as the institution itself. He heads innumerable committees, serves on countless boards. With such a load it can easily be seen that efficient use of bis time is imperative. When he joined the Security-First National Bank in 1919, Mr. Shelton was named assistant trust officer. The following year he was advanced to the position of secretary and in 1921 was elected vice president and secretary. In 1934 he became chairman of the executive committee, then his election as president followed in 1946. He has long been active in affairs of the California Bankers Association, the Association of Reserve City Bank ers and the American Bankers Asso ciation. He has been chairman of Group 5 in California, served his state Association as vice president in 194142 and as president in 1942-43. Since 1946 he has been a member of the Association’s committee on legislation and taxation. Mr. Shelton has been a member of the A.B.A.’s federal legislative coun cil, state vice president for California of the national bank division, and member of the executive council for two terms— during 1943-45 and again in 1948-49. Mr. Shelton’s personal popularity is tremendous. He is very proud of his attendance at Rotary as he has a perfect record for the past 25 years. He has headed so many civic groups (Turn to page 29, please) N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 24 LEG A L Is it Possihh> to P lace Ya lac o a l oi'povatcStock H a d a y P a r Q. This and O ther Tim ely Legal Questions A re A nsw ered Bankers are confronted from time to time with the problem of assisting in placing for various purposes a A’a lu e on corporate stock having a par value. In this activities in this regard is there a legal presumption that the value of such stock is its par value? by the LE G A L DEPA RTM EN T of the N O R T H W ES TER N BANKER computation, may be had only from the date of the determination of the right of recovery and the ascertain ment of the amount. It follows that the allowance of interest from the time the seepage damage was noticed should not be permitted. Y 1 No, according to most of the deci sions. While there are holdings to the contrary, the greater weight of authority favors the view that there is no presumption of law that corporate stock is worth its par value and, in fact, some of the cases state that there is no presumption whatever as to the value of corporate stock. The federal courts, Arkansas and Illinois, are among those holding with the majority rule, and Indiana and Missouri are among those holding with the minor ity. Decisions following both rules may be found in Kansas and Minne sota, their latest decisions being with the majority. Q. Buckle, an aged Illinois banker, bad two sons, Tudor and Fordor, and a farm in that state. As an incident to settling his affairs preparatory to going on a round the world cruise he executed and delivered to Tudor a deed to the farm Avhich contained a provision that Tudor would pay For dor $5,000 in five equal annual install ments. Tudor did not sign the deed along with his father, but he accepted its delivery, recorded it, and went into possession of the farm and started to raise corn thereon. Was he bound to pay the $5,000 in five equal annual installments to Fordor? Yes. The acceptance by the grantee of a deed conveying an estate in land and containing a covenant or agree ment to be performed by the grantee, followed by his entering into posses sion of the property, binds the grantee to the performance of the covenant or agreement as effectually as if he had signed the deed. This is established law in Illinois, the Supreme Court of that state having had occasion to re iterate it recently in a decision there. It is also established law in other juris dictions. N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Q Q. Kinsey Avas walking in front of a bank in Wisconsin. This occurred shortly after a snow storm that had brought on an ice formation on the sidewalk. Something happened and the first thing he knew lie had slipped, fallen, and broken a bone. The ice A A as merely a natural formation and there had been no Avrongful or negli gent act on the part of the bank re garding it. Kinsey sued for damages. Could he recover? No. The right to recover damages from a building owner for personal in juries sustained in a fall on an icy sidewalk adjoining the building must rest on some wrongful or negligent act of such owner, and no legal liability accrues if the ice is merely a natural formation. The Wisconsin Supreme Court has so held in a recent decision involving analogous facts. Q . Hoobletooble, a Nebraska banker, sued, in that state, a company for dam ages which was in the power and irri gation business and Avhich had per mitted water to seep from its canal to his land and injure it. The amount of the damages was not capable of being fixed by calculation and Hoobletooble’s claim was an unliquidated one which A v a s the subject of a reasonable con troversy. Should interest be allowed Hoobletooble from the date he first no ticed the seepage injury? No, according to a recent decision of the Nebraska Supreme Court which is in line with the general rule on these matters. Such rule is that the recovery of interest on an unliquidated claim, the subject of reasonable contro versy, and incapable of being fixed by A Minnesota resident A A a s mar ried and had a six year old daughter. They all lived reasonably happy to gether until another resident of that state enticed the mother away from the home and family. The minor daughter sued him for damages, the action being brought by her guardian. Could a recovery be had? Yes. In Minnesota a child has a right of action against a person who entices its parent from their family home and is entitled to recover dam ages sustained as a result of such en ticement. Similar rulings may be found in Illinois and the federal courts. Texas and some other courts, however, hold to the contrary. Q. Nebraska and Arizona by consti tutional amendment and North Caro lina by statute prohibited employers from requiring union membership of their employes as a condition of their employment and prohibited both em ployers and labor unions from enter ing into closed shop and union shop agreements. These measures AA ere at tacked on various grounds, one of them being that they violated the lib erty of contract under the due process clause of the Federal Constitution. Were they vulnerable to attack and therefore void? No. The United States Supreme Court had the measures outlined squarely before it early this year and upheld them as valid, binding, and not violative of the Federal Constitution. More specifically, the court found and decided that the legislation involved does not deny union workers freedom of speech, assembly or petition, or im pair the obligation of their contracts, or deprive them of due process of law. ♦ X 25 © H ere’s a complete plan designed to increase rentals immediately. It’s an integrated plan that has been proved effective by impor tant banks throughout the coun try. It’s an inexpensive plan — Mosler supplies its ingredients at cost! It’s a dignified plan that will add to the prestige of your insti tution while it increases rentals. \ \ All components are supplied to you by Mosler,. Y O U R N A M E , and your personal sales-story are amply pro vided for and profitably exploited. . . . a choice of six different handy-size folders which can be used for statement inserts, counter distribution, or pass-book enclosures. Your bank’s special sales-story has a whole page to itself. Plus four actionpromoting newspaper advertisement mats designed to make prospects think of Y O U when they consider a safe deposit rental. If you’d like to look at the ads and folders, just drop us a line and we’ll send you a sample kit immediately. There’s no obligation, of course. M o s le r S a fe &. M ain office: 3 2 0 Fifth A v e n u e , N e w Y o rk 1, N. Y. Factories: Hamilton, O. Largest Builders of Safes and Vaults in the World Branch Offices https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V. Builders of the U. S. Gold Storage Vault Doors at Fort Knox, K y. in your territory CH ICA G O M INNEAPO LIS -------- ------------------------ ► 214 W. Jackson Blvd. CEntral 6-3748 4606 Arden Avenue WAInut 6742 KANSAS CITY 430 Dwight Bldg. 1004 Baltimore St. Victor 5522 N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 26 M u h in y A d s D o D ou ble D u ty y. Y O U R C L IE N T S ’ B IG G E S T F O R E IG N M A R K E T Measure it as you w ill. . . your clients’ largest single U. S. customer is just across the border. . . . in Canada! Consider the figures. Annual imports, $2y2 billion . . . exports, over $3 bil lion . . . gross national product, more than $15 billion . . . wages and sala ries, over $7 billion. Since 1817 the Bank of Montreal has shared in Canada’s growth . . . has grown with it. With more than 500 Canadian branches, we are thor oughly equipped to answer the spe cific questions that you or your clients may want to ask. So, if you have clients who are planning expansion, talk Canada with us. Write or call any of our offices in the United States or our Foreign Department in Montreal. * * * Y O U R FREE COPY IS W A IT IN G FOR YOU If any of your clients are planning expansion, you’ll want this word-picture of post-war Canada. It’s yours for the asking. Simply ask for Booklet C-51. B a n k of M ontreal X \ < A AMONG PROBLEMS faced by many busy bank advertising men is where to turn for ideas for window and lobby displays. The American National Bank and Trust Company of Chicago suggested an answer to this problem in its exhibit at the recent annual convention of the Financial Public Relations Association in Chicago. The exhibit (shown above) demonstrated how newspaper advertisements can be worked over effectively for use in windows and lobbies by translating them into three dimensions and adding light and color. Prepared by C. A. Hemminger, public relations director, and the bank’s adver tising agency, Albert Frank-Guenther Law, Inc., the exhibit featured photographs of eight window displays and, opposite them, proofs of their space advertising counterparts. In most instances, illustrations used in the original advertisements were simply “ blown up” to king-size proportions, retouched, tinted, and placed against appro priate backgrounds. In one window, the visual elements were given added depth by low relief modeling, and in another the artwork was printed on film, tinted, mounted on glass, and lighted from behind. “ Making space advertising ‘double in brass’ has several advantages,” accord ing to Mr. Hemminger. “ The most obvious is that it saves the cost of new art work. But an even more significant factor is that such displays support the ads from which they are adapted, and vice versa. When direct mail and other forms of advertising can also be tied in with window or lobby displays, the results are likely to be still better.” C a n a da ’s First Hank. InCanadasince18ly.. . InU.S.sincei8jg u. s. NEW YORK ■- .................. 64 Wall St. CHICAGO------- 27 S. La Salle St. SAN FRANCISCO - 333 California St. HtAD OFFICE MON I REAL LONDON 47 Threadneedle St., E. C. 2 9 Waterloo Place, S. W. 1 $oo RESOURCES OVER »e $2 B ILLIO N N o r t h w e s t e r n B a n k e r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Resources Climb Total resources of Bank of America rose $149,161,813 since June 30th, ac cording to the Comptroller of the Cur rency’s call report of November 1st. Total deposits increased $94,164,531 in the period. Loans and discounts outstanding No vember 1st were $31,145,599 higher than at June 30th, and the bank’s in vestment in United States obligations increased by $78,278,100. Deposit totals shown in the call re port do not include the figures of for eign branches or of reciprocal bank balances. On this basis the November 1st totals are: Deposits $5,415,771,974; total resources, $5,859,355,152; loans and discounts, $2,705,113,276, and U. S. obligations, $1,641,882,177. Report Wins Award The 1948 annual report to stockhold ers of the City National Bank & Trust k https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 r I ^here are stars in the sky as well as thunder and lightning There is goodwill in the hearts of men at Christmas. There’s a warm welcome for the neighbor — a deep desire for friendship between nations — a determination to achieve lasting peace. » « Clouds scud along the horizon, sometimes building up to frightening thunderheads. Angry voices thunder without reason — and threats, like lightning, break and crash over the people’s heads. Yet the eternal stars are there — stars of Hope, of Faith, of Love— now dimmed or hidden by the clouds — now breaking through with a clarity and brilliance and strength that will not be denied. >><c May these stars be seen and followed by the wise men of all nations. May they light the path to peace. That is the Christmas prayer of the people. C H R I S T M A S 1949 . . . B A N K E R S T R U S T CO M P AN Y . NEW YORK ..... N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 28 Company, Kansas City, Missouri, has won second place in the Best of Indus try Awards for national banks in a contest sponsored by Financial World magazine. Heads New York Trust Charles J. Stewart was elected presi dent of The New York Trust Company at a meeting of the board of trustees of the company last month, succeeding FOCAL POINT for Co-ordinated Regional Wisconsin's Bank for Banks CH AR LES J. S T E W A R T Elected president of the New York Trust Company This outstanding bank—established in 1853—serves as Milwaukee de pository for over 90 per cent of all the banks in Wisconsin! Will. unparalleled correspondent “ coverage” of Wisconsin, the First Wisconsin National Bank of Milwaukee is not only “ the point of prompt collection” for Wisconsin checks and drafts, hut also the focal point for unique Co-ordinated Regional Service keyed to the needs of national corporations operating branches, sales divisions, distributorships, retail outlets or other units in ibis area. Bankers as well as business executives are invited to write for further information. FIRST WISCONSIN NATIONAL BANK o f M ilw au kee MEMBER OF THE FEDERAL DEPOSIT I NSURANCE CORPORATI ON / N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis John E. Bierwirth, who resigned as president to become president of Na tional Distillers Products Corporation. Mr. Stewart, a native Texan, and a resident of Bronxville, New York, graduated from Yale University, class of 1918. He has been associated with The New York Trust Company since 1930. Appointed an assistant vice president in 1931, he was in charge of the company’s branch office at Madi son Avenue and 40th Street. Following his election as vice presi dent in 1934 he has directed the com pany’s commercial banking activities at the main office. He has been a member of the board of trustees since 1945. At the same meeting Adrian M. Massie was elected executive vice pres ident, a newly created office. A grad uate of Yale University, Mr. Massie, who has been a member of the board of trustees since 1945, is well known in banking and investment circles and has been in charge of its investment division since joining the company as a vice president in 1934. He was for merly associated with the Bank of America in New York and City-BankFarmers Trust Company. Mr. Bierwirth will continue as a member of the board of trustees of The New York Trust Company. 29 Two Advancements Harvey D. Gibson, president of Man ufacturers Trust Company, New York City, announces the appointments of Maxwell Kalb, formerly assistant sec retary, and Franklin P. Johnson, of the security analysis department, as assistant vice presidents. Mr. Kalb has been with Manufacturers Trust for 25 years and Mr. Johnson for 15 years. BANKERS YOU KNOW (Continued from page 23) that his acquaintanceship is probably unexceeded by any business man in the area. In spite of pressing de mands, be tries to see everyone who has a claim upon his attention. Since his election to the presidency in 1946, the door to his office has never been closed. His telephone rings so in cessantly the bell lias had to be muffled so that now only his secretary can hear it. At the present time Mr. Shelton is president of the California State Chamber of Commerce. He was presi dent of the Los Angeles Chamber of Commerce in 1946 and has been treas urer and a director there. It is impossible to talk about Mr. Shelton without bringing in his fam ily, and his enthusiasm for the Anier- J- m.**- m ** y p e r s o n a liz e d / p ican way of life. The two could lit erally be listed as his “ hobbies.’ All the time he has away from business he devotes to his family, and to speeches on a variety of subjects, but with a single theme— praise of Amer ica. The lovely Mrs. Shelton is the former Anne Jacobson and they were married July 6, 1928. Mrs. Shelton and their three sons have first call upon Mr. Shelton’s few spare m o ments. He likes athletics, which makes it easy for him to be a com panion for his boys. As a platform orator, James Shelton is outstanding, as bankers will learn as he takes up his A.B.A. duties. His enthusiasm for our country, and for JhsL T Islw WUNDER AUCTION SALES SYSTEM I Copyrighted) Cuts time wasting steps and speeds up sales. Clerks, auctioneers and cashiers praise the new Wunder Auction Sales System— it saves so much time! One clerk can handle more transactions. Customers are relieved of irksome waiting. Sales are streamlined . . . collections speeded up . . . when this new system goes to work for you. -9 " 7 •* " vT« ______;•__ _ Uä A*«e- ■ Correspondent | Includes Life Time Double Index Case and Three Books ample to handle six Ordi nary Farm Sales. Total price is only $19.50. %k ■Ü*& w ; '■£**. ’ .y.'*?*. ■' L« X.t>y B a s e d on a P o l i c y of Cooperation -n of C o m p e t i t i o n Under the direction of officials with years of service in this field, assur ing a knowledge of requirements and valuable assistance. the men who founded it, is boundless. It tempers every speech, colors every address. His appeal is always to the best in his audience, their sense of fair play, devotion to duty, and ad herence to the basic virtues exempli fied by the founders of our country. It is a story with endless appeal. A l though he has been appearing on pub lic platforms for years, his name on any program is assurance of a capac ity audience. It is a full measure of a man that the A.B.A. has on its hands for the two years. He will do much for or ganized banking, and particularly for the esteem in which it is held by the rank and file of Americans. As a progressive banker, alert to new and better ways of doing business, you'll want to know what this hardworking sys tem can do for you. So write TODAY. No obligation naturally. t Here's the latest time-saver for auction sales A fast, accurate and flexible meth od of clerking auction sales . . . the Wunder System maintains a record of the sale for final settle ment, without recopying or han dling numerous lists . . . regard less of the number of transactions. k>K AH® T , U „FANY OF T NFW YORK Y O U R S . . . FR E E FO R T H E A S K IN G — complete information telling the many advantages of the Wunder Auction Sales System. Established 190« M N OPIICE-- 37 Broad St. , York Clearing H W » Federal Deposit Assoc***0» ' „ rnrtor a t t o n -------- A1N ember. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WUNDER AUCTION SALES SYSTEM Perfected by Walter J. Wunderlich, President, Nehawka Bank N EH A W KA , N EBRASKA N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 30 Investment Group Elects Hempstead Washburne, Harris, Hall & Company, Chicago, was elected chairman of the Central States Group of the Investment Bankers Association of America at the recent annual meet ing of the group. He succeeds Andrew M. Baird of A. G. Becker & Company, Inc. Other officers elected are: Charles R. Perrigo, Hornblower & Weeks, vice chairman, and Holden K. Farrar, Smith, Barney & Company, secretarytreasurer. New members of the group execu tive committee are: Edward C. George, Harriman Ripley & Company, Inc.; George S. Channer, Jr., Channer Se curities Company; Thomas W. Evans, Continental Illinois National Bank and Trust Company, and Lee H. Ostrander, William Blair & Company. Receives High Award For his valued contribution to the reconstruction of Italy, L. M. Giannini, president of the Bank of America, has been awarded Italy’s highest civilian honor, the Order “Stella della Solida rietà, Italiana,” first class. It is un derstood that only four other Ameri cans have received this high honor. M ay Result From Investm ent in F a x F ree M u n icip a l B o n d s ... In m aking investments for a ban k’ s portfolio, consideration should be given to the year’s p ro b a b le tax lia b ility . W e have frequently been o f m ajor service to our bank correspond ents through discussions in volvin g w ays and m eans o f reducing taxes on earnings. T h e yield on State and M unicipal bonds is incom e to keep and is not reduced by taxes. Since 1 8 8 2 state and municipal financing has been an im portant part o f our business. Our officers re sp o n sib le for our p o rtfo lio and the officers o f our Investm ent Departm ent p r o v id e v a lu e d in v e stm e n t a ssista n c e to countless banks. H arris T rust and Savings Bank Organized as N. W. Harris & Co. 1882 • Incorporated 1907 115 W est M o n r o e S treet, C h i c a g o 90 M em ber of Federal Reserve System M em ber Federal Deposit Insurance Corporation N o r t h w e s t e r n B a n k e r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Heads Bank Auditors Members of The National Associa tion of Bank Auditors and Comptrol lers, celebrating their 25th anniversary at their annual convention in Philadel phia recently, elected officers and di rectors for the coming year. Officers elected are: President, Ed ward F. Lyle, comptroller, City Na- E D W A R D F. L Y L E President, National Association of Bank Auditors and Comptrollers tional Bank & Trust Company, Kansas City, Missouri; first vice president, Burton P. Allen, president, First Na tional Bank, Milaca, Minnesota; second vice president, Clarence H. Lichtfeldt, comptroller, First Wisconsin National Bank, Milwaukee, Wisconsin; secre tary, George Ehrhardt, assistant vice president, Central Hanover Bank and Trust Company, New York City, and treasurer, Ira C. Chaney, auditor, Crocker First National Bank, San Francisco. Directors elected for t h r e e of NABAC’s six districts are: District Two — Charles S. Conklin, auditor, First National Bank, Atlanta, Georgia. District Four—A. S. Chaves, comptrol ler, The Live Stock National Bank, Omaha. District Six—Ward C. Van Arnam, auditor, Puget Sound National Bank, Tacoma, Washington. Appointed state vice presidents by Mr. Lyle in District Four were: Min nesota—S. J. Nelson, cashier, Northern Minnesota National, Duluth; Nebraska —Robert Wekesser, auditor, National Bank of Commerce, Lincoln; North Dakota—J. W. Kuppich, auditor, First National of Fargo, and South Dakota —Fred Barth, assistant cashier, Rapid City National. Mr. Lyle appointed W. P. Ronan, vice president, Decorah State Bank, Decorah, Iowa, as Iowa vice president. 31 Add Million to Capital Lawrence F. Stern, president, an nounces that the board of directors of American National Bank and Trust Company of Chicago have added $1,000,000 to the bank’s capital structure by authorizing an increase of the sur plus account from $4,000,000 to $5,000,000. The increase was effected through the transfer of $1,000,000 from the un divided profits account, which account was increased today by the transfer of $400,000 from interior reserves. Fol lowing the transfer, American Nation al’s capital funds, exclusive of reserve funds, total $9,036,426. This amount comprises $3,000,000 of capital stock, $5,000,000 of surplus, and $1,036,426 of undivided profits-. The new addition to the bank’s sur plus account coincides with the expan sion of its operating plant to the eighth floor of the American National Bank Building, La Salle Street at Washing ton. American National’s latest physical shift, according to Mr. Stern, reflects a total increase of one-third in operat ing space during the last three years. Robert D. Scott Robert D. Scott, 64, a vice president of Chemical Bank & Trust Company, New York, died suddenly last month. O pen JVew O ffice id 61 Statement of Condition November 1, 1949 RESOURCES : Cash and due from banks...............................................................$ 51,205,884.17 U. S. Government Securities........................................................... 74,775,288.00 (Including those pledged $12,125,441.45) Other Bonds and Securities............................................................. 9,280,098.20 Federal Reserve Bank Stock........................................................ 300,000.00 Loans and Discounts ........................................................................ 86,329,952.31 Customers' Liability on Acceptances and Letters of Credit............................................................................ 248,671.62 Bank Building ..................................................................................... 1,419,511.95 Other Real Estate.............................................................................. 6,271.11 Accrued Earnings Receivable (Net)............................................. 558,871.05 Overdrafts ............................................................. 35,071.37 Other Resources ................................................................................. 120,646.44 $224,280,266.22 t LIABILITIES: 6 , 0 0 0 . 00 0 .0 0 $ Capital .............................................................................................. Surplus and Undivided Profits.................................................. Accrued Interest, Expenses and Taxes Payable (Net) 9,493,588.24 and Other Reserves ............................................................... 712,901.49 Acceptances and Letters of Credit........................................... 248,671.62 Other Liabilities ............................................................................ 410,834.38 Deposits: U. S. Government, and other Public Funds ...........................................$ 8,549,190.61 207,414.270.49 Other Deposits ........................................... 198,865,079.88 $224,280,266.22 BANKS FOR SALE The Mosler Safe Company an nounces the opening of a new office in Baltimore at 510-512 St. Paul Street, for the sale, service and re pair of bank vaults, and protective equipment. J. B. Seitz will be man ager. Located in the company’s own building recently purchased and completely remodeled, the office will be staffed with experienced person nel who will service banks, insurance companies and business firms in the Maryland and Delaware areas. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Several Attraetive Opportunities Now Available in Iowa and Adjoining States. Write Us Outlining Your Wants. All Negotiations Confidential. BA N KERS Henry H . Byers, President 1 1 08 Register & Tribune Bldg. S E R V IC E fO . E. M. Whisler, Secretary Des Moines 9, Iowa l____________________ J N o rth w e s te rn B a n ke r, D e c e m b e r , 1949 ' 32 .4 Tiinf>-$0triiifj M v th tu l o f 1 tori.-i o ff S o lo s ESIGNED to provide a fast, ac one buyer buys several articles to gether, they can be listed on the same ticket. Otherwise a new ticket is used for each buyer. At the sale where the clerk and cashier work together the clerk hands each page of tickets to the cashier as it is filled. The cashier sep arates the tickets by tearing on the perforated lines of the carbon copy, which is of heavy stock to permit easy filing, and files them alphabetically under the purchaser’s name in the “un paid” ticket file. The metal filing case, mentioned above, is of pressed steel, one and onehalf inches deep, six and one-half inches wide, and eight inches long. In it is a double set of alphabetical divid ers, to permit space for “paid” and unpaid” tickets. When purchasers appear for settle ment, the cashier refers to the proper index letter in the ticket file, which so far is in the “unpaid” portion. He removes all tickets for that purchaser, totals the amount of all tickets, and makes settlement. Then these tickets are filed in the “paid” section of the file, or may be given to the buyer as his receipt and claim check, or simply bundled together as an extra record of the sale. Duplicate numbers on the tickets and carbon, in space which is provided, will afford quick reference from the tickets to the sale record, a quick method of rearranging the tickets in order of sale, and prevent loss of any record of transaction. curate and flexible method of clerk D ing auction sales and making collec tions, regardless of the number of auctioneers, clerks, cashiers or trans actions, the Wunder Auction Sales Sys tem is now available to banks. The new system maintains a record of the sale for final settlement without re copying or handling numerous lists or cards. The Wunder Auction Sales System has been copyrighted by Walter J. Wunderlich, president of The Nehawka Bank of Nehawka, Nebraska, and its time saving and accuracy has been proven by him in clerking hundreds of sales. In one instance, Mr. Wunderlich started an $8,200 sale at 11.30 a. m. and finished completely by 3:30 p. m. In another case, that of a $32,000 sale, the selling, with two auctioneers and two fieldmen, started at 9:00 in the morning and finished at five o’clock that evening, with only 25 unpaid items. There was no standing in line to settle up, and Mr. Wunderlich and his son handled the whole thing. There are only two parts or items in the Wunder Auction Sales System, a book of long sheets which have been perforated into tickets, and a metal filing case. In the book, every other page has a carbon back, and is perfor ated into tickets. As each article is sold by the auctioneer, the clerk notes the name of the purchaser, the articles, and selling price on the top sheet. If JP ul SstoM niu ^MsdinqA. with the wish that 1950 will be a Prosperous and Happy Year for our many friends. DIVISION OFFICES Des Moines, Iowa + St. Louis, Mo. Grand Rapids, Mich. ★ N o r t h w e s t e r n B a n ke r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis jr Madison, Wis. Fayetteville, Ark. ir ir Angola, Indiana San Antonio, Texas Sales of large items which sell slow ly can be handled by one clerk-cashier by tearing off and filing the tickets while the next article is being sold. At the close of the sale the clerk-cash ier has his record for collections with out posting or going through the entire sale record. Unlike other posting sys tems, a new book is not required for each sale. Unused pages may be re moved and a new sale started on any page of the book.—The End. New Burroughs Machine Burroughs Adding Machine Com pany has announced a new automatic bank accounting machine, which pro vides new standards of speed, operat ing ease and capacity for bank book keeping operations. ' It was displayed publicly for the first time at the Amer ican Bankers Association convention in San Francisco. Simplified operation of the new ma- Burroughs new automatic bank accounting machine in action. chine makes it possible to calculate and write a complete bank statement by using only three controls, which require 75 per cent less energy to op erate. Internal operating speed has been increased 15 per cent; paper han dling effort reduced 50 per cent; ac cumulating capacity more than tripled, so that ten totals can be “remembered” simultaneously, and the machine so equipped that it can be transformed in an instant from a bookkeeping to a high-speed listing machine. R. R. Eppert, vice president of Bur roughs, stated that the machine, under development for several years in Bur roughs’ engineering laboratories, was designed to help bankers effectively handle a bookkeeping job that has dou bled in magnitude in the last ten years. Other features cut fatigue and in crease output. Keys and controls oper ate with a “feather touch” and effort in handling paper has been cut in half. Ordinarily it takes two hands to “feed” a statement into a machine. On the new Burroughs, carriage design and guides automatically square the state ment up and enable the operator to feed it with only one hand. 33 INVESTMENTS 3 iarU et tor H iyh GraHoads W ilt Continue Steady There Will Be a Large Supply of Obligations Available, And the Demand Promises to Be Strong By RA YM O N D T R IG G ER Investment Analyst New York City NE of the most interesting de velopments affecting commer cial banks in the past decade, and promising to grow in importance in the future, is the expansion of time deposits. Altogether, the country’s commercial banks have between 35 and 40 billions of such deposits. This is a sum much greater than the total deposits of mutual savings banks. Except in the East, mutual savings banks are rarely found. Consequently, thrifty folk turn to the commercial banks where they receive a fair return on their savings. The so-called “coun try” banks hold time deposits about equal to their demand deposits. But even the “big city” banks are eagerly soliciting such business. For one thing, the required reserve against time de posits is relatively modest and the well-managed commercial bank should be able to earn a tiny net profit on them. The mutual savings banks do, of course. The commercial banks, however, are always up against the cheap money policies of the authorities in Washing ton. These policies largely determine the yield from all grades of invest ments. The banks, if they are still in fluenced by the concepts which gov erned their decisions when they were truly “commercial” banks and before they became a combination of commer cial and savings bank, tend to invest largely in short-term obligations. This, for contrast, is not the policy of the mutual savings banks, nor of the in surance companies. These two earn more from their investments because they go into longer maturities. “Time” deposits it can hardly be denied, have much the same character istics as the money placed with mutual savings banks and insurance compa nies. Logically, then, it would appear that they might be invested in the same type of securities favored by mu tual savings banks and insurance com panies. Both these types of investors O https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This is a discussion of factors affecting your investm ent port folio. If you have any questions, or if you find yourself in dis agreem ent with comments here in, your letters, addressed to the N O R T H W ES T ER N BA N KER, w ill be w elcom e and w ill be answ ered here if the subject m atter is of general interest. Under no cir cum stances w ill the editor of this column discuss specific securities. insist on credit soundness, but neither make too much of a fetish of short maturities. M unicipals A re Favored Some of the best counsel going to commercial banks nowadays makes the same points. Credit soundness is stressed, in and out of season, by the regulatory authorities. Much less em phasis is placed on the life of the obli gation. Municipal bonds are lately in the forefront of appealing bank in vestments. For one reason, there are now more municipals available than ever before and the supply will be greatly increased in 1950 and there after. This is not expected to result in lower prices, but it should bring vastly widened marketability. In the November elections, the vot ers passed upon a record high to tal of proposed tax-exempt bonds. The greater part, around 85 per cent and perhaps $1.4 billions, was approved. Highlights included large issues by such respected states as California, Pennsylvania, New Jersey and New York. They will be brought to market in the course of the next few months. At the same time, a large and steady volume of Housing Bonds issued un der the 1949 act will become available. The latter, since they are to be taxexempt, are considered as municipals, although their security rests upon con tracts with an agency of the federal government. The credit soundness of the states just named, for example, and the fed eral government can hardly be ques tioned. On the point of maturities, it has been urged that a bank with a large part of its liabilities in time de posits is justified in holding more long term investments than one in which demand deposits preponderate. It is al lowed, though, that if a particular bank is overburdened with long-term loans, there would be little room for long term municipals. But, the practice of refusing to buy certain bonds gen erally recognized as suitable, simply because of their long life, which some banks do, is a policy difficult to defend in view of money and security market conditions today. Interest Rates A frequent objection that no one knows what interest rates will be 20 or 25 years from now can be polished off with the equally valid assertion that no one knows what interest rates will be five or ten years hence, al though from one to perhaps 13 years is normally spoken of as the “bank” range of maturities. Certainly, time deposits are compa rable to savings deposits. Thus, Mr. Ihlefeld’s remarks are applicable to commercial banks as well as to the savings bankers to whom he was actu ally addressing himself. Of prime im portance is his insistence of maintain ing quality as a first consideration, rather than downgrading a portfolio and then trying to justify such action by citing a shortening of average ma turities. Q u ality Bonds If the manager of a commercial bank’s investment portfolio will stand by his guns as to quality, he will pay a great deal of attention to govern ments and to high-grade state and mu nicipal obligations. In these fields, the questions of prices and yields are im portant. An authority in the tax-exempt field N orthwestern Banker, D e c e m b e r , 1949 34 Investments WHEELOCK& CUMMINS, INC. IO W A AND GENERAL MARKET MUNICIPALS PUELIC UTILITY, INDUSTRIAL, AND RAILROAD SECURITIES IO W A CORPORATE SECURITIES UNDERWRITERS DISTRIBUTORS Members Chicago Stock Exchange 200 Equitable Bldg, DES MOINES 9, IOWA 135 South LaSalle St. CHICAGO, ILLINOIS FARM MANAGEMENT and FARM CREDIT Doane Farm Managers face critical decisions next year for the farms under their direct management: • • • • Shall ive sell corn— or feed it ? Shall we buy feeder cattle, hogs or sheep? At what weight shall we market hogs? Shall ive seed down more cropland for pasture or hay? Such questions face every farmer— and the result of his decisions will affect his credit favorably—or unfavorably. To meet such problems correctly we make a continuous study of factors that control prices. Most of these factors are predictable. Some— like weather and government activities— are not. But four out of five of our forecasts have proven correct in the past. . . . Back your judge ment on credits with that of the oldest and largest farm management and agricultural research organization. Consult the DOANE AGRICULTURAL DIGEST and its twice-monthly releases. This 450-page cumulative reference volume, in strong loose-leaf binder, is kept constantly up to date by releases, interpreting trends and predicting outlook on prices, produc tion, markets, surpluses and shortages aWrite for head. FREE SAMPLE RELEASES DOANE Agricultural Service, Inc. and l e a r n ho w the D ig e st c a n help you so lv e fa rm c r e d it p ro ble m s. N o r t h w e s t e r n B a n k e r, D e c e m b e r , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dept. 605, 203 Plymouth Bldg., Des Moines 9, la. has lately offered some opinions on the comparative desirability of govern ments and municipals which appear worthy of wider dissemination. They are given, in somewhat abbreviated form, in the following paragraphs: If long-term state and municipal bonds were bought today, the net earnings on the funds so invested would be much greater to the bank which pays Federal income taxes of 38 to 53 per cent than it would be if placed in short-term taxable securi ties. In fact, probably in the majority of cases, the net return would be great er than is obtainable from securities of similar quality which are subject to tax, and would exceed by a com fortable margain the 1 to 1% per cent interest paid on these deposits by most banks. The following list of high-grade bonds offered currently illustrates the kind of yields which a bank may ob tain from municipal bonds of un doubted credit soundness: California 2%s/66 ................. 1.70% Los Angeles 214>s/70............. 2.25% Denver 2s/75-67 .....................1.85% Illinois l%s/72 ...................... 1.75% New York State 2s/80........... 1.90% These may be compared with a yield, after a 38 per cent tax, of 1.30 per cent from Treasury 2J^s/72-67. Municipals of the type listed have features which have long made them attractive to conservative investors anxious to increase earning power of their portfolios without running un warranted risks. The issuers of bonds of this type have an enviable record for prompt redemption of their pledges and their obligations are actively and freely traded all over the country. In fact, the market for such securities is larger and broader than ever before. Life Grow ing Shorter It is also argued that the life of the government’s funded debt is growing shorter every day. The longest Treas ury bonds eligible for bank investment are the 2%s/72-67, now looked upon as 18-year maturities. With the passage of time they will become shorter, and, unless some contrary influence is pres ent, the yield also will tend to grow less along with their life. Therefore, banks desiring the higher return which can only be had by extending maturities, if they wish to hold securi ties of the type of governments, would do well to turn to the long-term mu nicipal market. There they will find security, yield (taxes considered), vol ume and diversification to an extent unlikely to be discovered elsewhere. It is true that governments have closer markets than municipals. But the market for municipals, in general, is good. The distinction is one of degree, rather than kind. At the same Investments time, it may be asked just how vital is the highest degree of liquidity to the average commercial bank today. De posit liabilities are covered to the extent of 70 per cent by cash and gov ernments in the average bank, suggest ing that the great majority have al ready a high liquidity ratio. Inviting Investments It may even be that some reduction of liquidity ratios is in order if, there by, earnings can be helped a little with out in any way sacrificing quality. There would appear to be no more in viting investments than municipals and the prospective new Housing Bonds. Some of the key features of the latter have been presented in a recent article in The Bond Buyer in the following manner: 1. They will be issued by local au thorities, but will be supported by a contract with an agency of the Fed eral government. 2. Each issue will be secured by the same form of contract with the Public Housing Authority. This authority is an instrumentality of the Federal Gov ernment and the contract with it will be based on the good faith and credit of the United States. The security back of these bonds, therefore, will make them as nearly like U. S. Govern ment bonds as any could be and yet not be government bonds. 3. The volume to be issued will be large enough to assure an adequate supply and a satisfactory market. 4. Serial in form, running from one to 40 years, or less, they will give the buyer a wide range of maturities to choose from. 5. They will be exempt from all Fed eral income taxes by explicit provision in the act, and in the state of issue https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis they will be exempt from the same taxes as are the local municipals of that state. 6. National banks and members of the Federal Reserve System, unless prohibited by state law, will be per mitted to i n v e s t in unrestricted amounts of these bonds, the same as they may in regular government obli gations, and they may trade in them. The general market outlook is for continued steadiness by high-grade bonds. The Federal government will have an impressive deficit to finance in the current fiscal year and likely will not impose significantly higher taxes. Thus, there will be a large sup ply of obligations available, but de mand, too, promises to be strong. For one thing, almost all of the postwar expansion plans of industry have been completed, or the financing arranged. Indeed, some industrial enterprises appear to be burdened with greater liquid assets than needed. Of equal importance, on the supply side, is the growing total of pension funds. If a pattern has been set, as it appears, some really breath-taking totals can be compiled. If all the companies discussed do settle with their workers for handsome pensions, the total of involuntary savings, or withheld wages, will rise to impressive levels. Assuming that the Federal government adheres to its general pol icy of refunding old debt and borrow ing new money with short-term, lowinterest rate obligations, trustees of pension funds likely will be driven to seek investments in medium and long er term obligations of corporations and municipalities and states. The latter, if yields are comparable may well prove the more popular.—The End. 35 W e offer f o r sale the notes of these representative finance com panies Aid Investment & Discount, Inc. Akron, Ohio Automobile Banking Corporation Philadelphia Bilderback Inv. Trust Champaign, III. S. W . Coe & Company Springfield, Illinois Colonial Finance Company Lima, Ohio Consolidated Finance Corp. Indianapolis, Ind. Contact Purchase Corporation Detroit Interstate Finance Corporation Dubuque, Iowa Interstate Securities Company Kansas City, Mo. Mercantile Acceptance Corporation San Francisco Mercantile Discount Corporation Chicago Mossier Acceptance Company New Orleans National Discount Corporation South Bend North American Acceptance Corporation Chicago Northern Illinois Corporation De Kalb, III. Securities Acceptance Corporation Omaha Winter & Hirsch, Incorporated Chicago A S H W ELL & COMPANY 176 W E ST ADAM S STREET CHICAGO, ILL. Commercial Paper Northwestern Collateral Loans Banker, De ce m be r, 1949 36 Investments 5 MINUTES FROM DOW NTOW N LOSANGELES At the Chelsea, every guest room is a large outside room, with its own private bath. All are beautifully decorated and designed for comfort. A truly outstanding downtown hotelperfect for those who wish to be in mid-city, and yet prefer a quiet home-like atmosphere. The Chelsea is n ear-R adio Center, Huntington Library, Forest Lawn Memorial Park, China City, Movie Studios, Beaches. Rates from $3.00. BO N N IE Langdon R. Littlehale has been ap pointed director of advertising and as sistant director of sales of The Mosler Safe Company, according to Edwin H. Mosler, Sr., president. Mr. Littlehale, who was an account executive and member of the Plans Board of Albert Frank-Guenther Law, Inc., ad vertising agency, until he joined Mos ler, will make his headquarters at the company’s main office in New York at 320 Fifth Avenue. Chicago Banker Retires Beautiful New Coffee Shop Now Open SOUTH Joins Mosler Company BRAE Carl E. Schiffner, vice president of The First National Bank of Chicago in charge of one of the loaning divi sions, retired recently, after 43 years’ service. Mr. Schiffner entered the bank as a bell boy in 1906 and rose through the ranks and became an as sistant cashier in 1927, assistant vice president in 1934, and vice president in 1938. Clarence E. Cross, vice president, has been placed in charge of the divi sion. He will be assisted by Bentley G. McCloud, Jr., assistant vice presi dent; Elmer A. Tittle, formerly an as sistant manager of the real estate loan department, and Ephraim S. Clark and Charles J. Maurer, assistant cashiers. Western Mutual Insurance Co. Des Moines 8, Iowa "MUTUAL INSURANCE IS AMERICAN INSURANCE " N or th w es te rn Banker. De ce mb er, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 37 IN S U R A N C E A .B .A * t nsaranee Com m ittee I Tryes Hiifui Coit trot o f O perations / Tentative Compilation by Eight Large Companies Indicates Over-all Loss Ratios Have Leveled Off T HE insurance and protective com mittee of the American Bankers Association urges that manage ment of all banks insist on a more rigid control of operations; periodic audits of assets, including verification of loans, and the periodic verification of deposits, according to the annual report of the committee which has been released by its chairman, George C. Bennett. Mr. Bennett is assistant comptroller of Bankers Trust Com pany, New York City. “Complete reports of the surety com panies’ loss experience under bankers blanket bonds for 1948 are not as yet available,” Mr. Bennett says. “ How ever, a recent compilation of the 1948 experience reported by eight large companies indicates that the over-all loss ratios have leveled off, as com pared with the successive increased loss ratios in the years from 1945 to 1947. “ In the face of these improvements and despite the upturn in loss ratios for the period 1945-48, loss experience continues sufficiently favorable to jus tify the moderate rate reductions rec ommended by the committee. Recommend More Coverage “ The committee also recommended that coverage against loss through mis placement and mysterious, unexplain able disappearance be made a compo nent part of standard coverage in in suring clauses B and C of Form 24 without any premium loading, rather than be offered as an optional cover age at an additional charge as at present. “ The insurance and protective com mittee again urged substantial reduc tions in rates charged for securities (forgery) insuring clause E. In view of the extremely favorable loss expe rience on securities forgery losses un der clause E, the committee’s recom mendation called for a reduction of about 55 per cent in the rates applica ble to this clause. The Surety Asso ciation of America is studying the experience of its member companies under clause E, with a view to making this coverage more attractive to banks ratewise. Standardized Form For the first time in history, on Feb ruary 1, 1949, the inland marine insur ance companies adopted a standard ized form of registered mail and ex press policy. The registered mail and express policy is probably one of the most widely used bank insurance con tracts, and banks should insist upon the new standard form, particularly in view of the present rate schedules which are at all-time lows. “During the past year the attention of banks was called also to a form of loss payable endorsement available countrywide for attachment to auto mobile fire, theft, comprehensive, and collision policies. This endorsement gives banks protection similar to the real estate standard mortgagee clause and we emphasized that lienholding banks should be named as sole loss payees. “ In view of a renewed interest in the subject on the part of trust offi cers, the committee will continue its efforts with the casualty companies to speed adoption of a comprehensive form of liability insurance for corpo rate fiduciaries. Successful Robberies “ Sixty successful hold-up robberies and 26 successful burglaries were re ported in the year ended August 31, Did you know that adoption of our Cash Letter insurance enables you to dispense with detailed Cash Letter transcripts and keep only a duplicate adding machine tape? Ask us for details. F IR S T N A T IO N A L B A N K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B U I L D IN G C H IC A G O 1949. Among the burglaries were two successful attacks upon night deposi tory safes, with losses of $16,900, and five thefts perpetrated by ‘fishing’ de posits back through the heads at the street entrance of night depository chutes, causing losses aggregating $31,108. These bank robberies during the association’s recent fiscal year compare with 58 hold-up raids in broad daylight and 26 night burglaries in the year ended August 31, 1948. “ In 1949 there were 49 attempted burglaries and frustrated hold-ups, in cluding three unsuccessful attacks on night depository safes and one unsuc cessful attempt to ‘fish’ cash from the head of a night depository chute. One-man Trend “The trend in daylight hold-ups dur ing recent years appears to have turned to one-man jobs. This year there were 30 lone bandit attacks out of 60 hold-ups. In five of the 30 at tacks, written notes were presented to tellers and in 12 other demands were made in the usual low voice of the rob ber. The method of attack at eight banks was not reported, but at the remaining five banks various tricks were employed, including an early morning entry with the first arrival of the staff to open the bank; inquiries regarding loans; common loitering to strike at the psychological moment, and a gag about a company wanting pictures of the bank. Nineteen of the 30 lone bandits were arrested on the spot or within a few hours of their attack. “ Sneak thieves apparently found op portunities for attacks against 16 banks and in 11 states extending from coast to coast. Three attacks were frustrated by prompt action on the Scarborough & Company Insurance Counselors 3, IL L IN O IS STATE to Banks 2 4325 Northwestern Banker, De ce mb er, 1949 38 Insurance 1st thoughts for bank officers on 2nd guessing You can’t “ second guess” in buying insurance. Think first of complete pro tection. The St. Paul Form No. 24 with extended coverage is more compre hensive, leaves the least amount of contingent liabilities. Call a specialist. Call a St. Paul agent. part of bank personnel and a deposi tor, but in the 13 successful attacks the loot amounted to more than $38,100. “ Thirteen mortgage swindles re ported during the year resulted in losses totaling $14,758. The collateral consisted largely of automobiles, farm machinery and cattle, which was miss ing either through sale or removal to another state.”—The End. Third Annual Conference The third annual one-day confer ence of correspondents of the First National Bank of St. Louis, held at the BANKER'S BLANKET BONDS SAINT PAUL IN D E M N IT Y - MERCURY COMPANY 111 WEST FIFTH STREET I nsurance r ST. PAU L 2, MINN. C o u n s e l l o r s to Banks C O M E S D EC EM B ER In a few short weeks we will be looking back at 1949. It's a good time to pause and express our thanks to the ten thousand and more banks who some time during the year permitted us to serve them. W e appreciate their ex pressed confidence in our product and in our service, and we will do our best to merit its continuance. M ost o f us have the feeling that the year now drawing to a close contained more elements o f normalcy than we have lived thru for a long time. The pipeline o f supply in nearly every field filled up for the first time since 1941. Quality improved quite a bit and deliv eries were more dependable. Manufac turing facilities were expanded and brought up-to-date. And, for the most part, sellers were looking for business instead o f avoiding it. Here at DeLuxe we will have sold a little more than in 1948 and we think the figures will show that our profits were only slightly less. W e installed a lot o f little improvements that enable us to "D o It Easier." Our new St. Paul plant is just about completed. The young salesmen we added to our staff Deluxe CHECK PRINTERS <J)nc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in ’45 and ’46 are beginning to mature. And our Profit Sharing Trust will wel come ninety-eight new members. So we hope 1949 will prove to have been a normal year and, if so, we liked it. For the year coming up we have made no special plans except to continue our unbrilliant but persistent efforts to de liver the goods in a satisfactory manner. W e hope to see more o f our check customers reduce their check cost by selling more imprinted checks. W e would like to see more banks install Check Desks for better control o f check distribution. W e will try to create a more comprehensive selection o f ad vertising folders which banks can use in their programs to sell Personalized Checks. Banks, we think, will do more real selling than they ever did before, and we feel sure that checks will play an important part in their merchandis ing programs. I f we have a definite objective at all for the coming year it is to keep pace with the salesmindedness o f our bank cus tomers and to make whatever contribu tion we can to their campaigns. M a n u fa c t u r in g P la n ts a t : N E W Y O R K , C L E V E L A N D , C H IC A G O , K A N S A S C I T Y , ST. P A U L Chester C. Davis (left) president of the Federal Beserve Bank, St. Louis, shown addressing luncheon meeting of third annual one-day cor respondents conference of First Na tional Bank of St. Louis. Seated at right is William A. McDonnell, First National president, who presided at all sessions. Jefferson Hotel last month, was at tended by 506 bank officers and direc tors from 16 states. It was the largest attendance since the plan was inau gurated in 1947. The luncheon address was delivered by Chester C. Davis, president of the Federal Reserve Bank of St. Louis, whose subject was “Looking Ahead With Banking.” The afternoon session was addressed by Ray J. Miller, vice president and personnel director, who spoke on “Our Methods and Planning Division,” and Robert D. Kerr, vice president, who presented “Some Ob servations on Consumer Credit.” After an intermission, Dr. Marcus Nadler, noted economist and New York Uni versity professor of banking and fi nance, delivered an address on “The Outlook for Banking in a Period of Transition,” which was followed by a question and answer period. Guest speaker at the evening session was Gwilym A. Price, president of Westinghouse Electric Corporation, Pittsburgh, whose subject was “Cita- /S Insurance 39 r A dels of Capitalism.” Business and in dustrial leaders of the St. Louis area also were guests of the bank at dinner. Open house was held by the bank the morning of the conference and the day following. William A. McDonnell, president of the First National Bank, presided at all sessions. 4 FACTORS THAT MAKE A BANK MODERN (Continued from page 20) The public is our first consideration in the adoption of any new method which will affect the customers. A case in point is the hours that the bank is open to the public, and their well being is of paramount impor tance. A genuine interest in them is demonstrated by informing them well in advance of any contemplated new method to be inaugurated. Customers are intelligent and, therefore, there is no necessity for “hiding under the bushel,” so to speak, and a frank statement in understandable language is generally accepted by the public. Anything new in the bank operation, if it is sound in principle and can be shown to the public that it is to their best interest, will be accepted by them wholeheartedly. It is your responsibility to sell the banks to the public. It is not enough to be constantly advertising in the newspaper and over the radio, but as a member of the staff of your bank you must take an active interest in > Í* ro m o t0 * d civic affairs in your community. In the rural areas you have a definite responsibility in the promotion of the work of the 4-H Clubs, future Farmers of America, Farm Bureau, and other farm organizations, in addition to your civic activities. You cannot expect the public to ward off the competition we get from non-bank organizations. You, yourself, must face the facts and by adopting modern up-to-date meth ods must prove to the public that such competition cannot give as good and dependable service as a bank gives. In conclusion, we have found the use of music during and after banking hours to be most enjoyable. The mu sic is provided by recordings and only classical numbers are used during banking hours. After the bank has closed for the day, the employes are at liberty to “ Roll Out the Barrel” and “Boogey Woogey.”—The End. M ER MUTUAL CH AN TS BONDING COMPANY Incorporated 1933 A Winner Every Day Home Office SAVINGS & LOAN BUILDING Des Moines, Iowa The man who comes out first is the man who works hard. To the banker who wants to come out first in earning power—there is an easy way—selling Policy holder's life insurance. We'll give you full details; just call or write today. W. E. MOORE, A gency V ic e • This is Iowa’ s oldest surety company. A progressive company with experi enced, conservative management. We are proud of our two hundred and fifty bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. P re sid en t • Policyholder’s National Lite Ins. Co. E. H. WARNER Home Offices Secretary and Manager SIOUX FALLS, SO. DAKOTA W . W . W ARNER Assistant Secretary 4 T lfb ü vu ^ h ) IJ jo l l ì . .. a n d o u r S in c e r e T h a n k s f o r a n o t h e r y e a r o f fin e c o o p e ra tio n ALLIED M U T U A L 4 i 4 The Friden Calculating Machine Company, Inc., of San Leandro, Calif., has announced the appoint ment of L. B. Taylor (above), as its sales manager. Mr. Taylor had been domestic sales manager of the Friden Com pany. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CASUALTY COMPANY H arold S. Evans, President Des M o in es 9, I o w a 4th and P a r k S t r e e t s Northwestern B anke r, D e c e m b e r , 7949 40 A Statement o f Condition as at November 1, 1949 X First National Bank of Minneapolis DIRECTORS RESOURCES Henry E. Atwood, President Cash and Due From Banks $102,104,869.41 United States Government Securities 128,808,198.67 Other Bonds and Securities Loans and Discounts 25,916,912.91 . . . . 103,533,672.60 Atherton Bean, Executive Vice President, International M illing Co. Russell H. Bennett, Treasurer, Meriden Iron Co. Daniel F. Bull, President, The Cream o f Wheal Corp. John Cowles, President, Minneapolis Star and Tribune Co. Accrued Interest and Accounts Receivable Customers' Acceptance Liability 1,087,927.24 530,575.20 Bruce B. Dayton, Secretary and Treasurer, The Dayton Company Bank Premises and Furniture and Fixtures Other Real Estate (For Future Development of Banking Premises) Other Assets .................................. 193,858.89 Paul V. Eames, President, Shevlin-McCloud Lumber Co. d otal Resources . Donald D. Davis, President, Minnesota and Ontario Paper Co. Harry J. Harwick, Chairman, Mayo Association, Rochester, Minn. 500,000.00 289,872.92 $362,965,887.84 John H. Hauschild, Chairman o f the Board, Chas. W . Sexton Co. W . L. Huff, Executive Vice President, Minneapolis-Honeywell Regulator Co. C. T. Jaffray, Director, First Bank Stock Corporation |ohn H. M acM illan, Jr., President, Cargill, Inc. M alcolm B. M cD onald, Vice President LIABILITIES Capital Stock Sumner T . M cK night, President, S. T. M cKnight Co. . . . . . . Surplus . . Undivided Profits . . . . . . . $ 6,000,000.00 11,000,000.00 Howard I. M cM illan , President, Osborne-M cM illan Elevator Co. S. G . Palmer, Retired 4,438,842.81 Leslie N. Perrin, President, General M ills, Inc. General Reserve for Contingencies . 2,125,294.59 A. F. Pillsbury, Director, Pillsbury M ills, Inc. Reserve for Interest, Expenses, Faxes, etc. 3,336,271.30 . . . Acceptances and Letters of Credit . Other Liabilities . . . . . Demand Deposits l ime Deposits 530,575.20 967,259.27 $281,902,081.96 . 52,665,562.71 Total Liabilities 334,567,644.67 $362,965,887784 v Arthur H . Q uay, Vice President F. B. Wells, President, F. H. Peavey & Co. Alfred E. Wilson, Vice President and Chairman o f Trust Committee C . J. W inton, Jr., President, Winton Lumber Co. Sheldon V . W ood, President and General Manager, Minneapolis Electric Steel Castings Co. Edgar F. Zelle, President, Jefferson Transportation Co. United States Government obligations and other securities carried at $64,043,496.26 in the foregoing statement are deposited to secure public funds and for other purposes required by law. T MEMBER bEDERAL DEPOSIT INSURANCE CORPORATION Northwestern Banker, De ce mb er, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Y AFFILIATED WITH FIRST BANK STOCK CORPORATION 1949 m m 41 where he was employed from August, 1944, to April, 1946. He was trans ferred from there to Webb, Iowa, where he worked from April, 1946, to January 1, 1947. Since that time he has been associated with his father on their farm north of Hardwick. Minnesota W om en 'sF in a n ce T HE First National Bank of Minne apolis last month concluded its final weekly meeting of a series of six comprising its first Women’s Fi nance Forum. After the bank had made announce ment of its plan to hold such a forum, designed to pass along financial in struction with the “mystery” removed, nearly 900 applications were received from women wishing to attend. The original maximum quota of 350 was raised to 450 and the other 400 appli cants were informed by personal letter that they would receive first call on tickets for the second Forum which will begin January 16th. Two classes were held, one in the morning for housewives, the other in the evening for business and profes sional women. Meetings each lasted 90 minutes, and each participant was provided with materials and a note book in which to keep permanent rec ords of outlines handed out at the meetings. A dvance A dvice Preparation of all talks was made with the advice of various women’s groups in order for the six speakers to obtain the women’s views in ad vance and what they wished to know about specific phases of finance. In charge of the Forum for the First National Bank were Malcolm B. Mc Donald, vice president, and Oliver S. Aas, assistant vice president in charge of public relations. The six speakers were all highly qualified in their respective fields, Law rence Washington, third vice presi dent of the Metropolitan Life Insur ance Company and author of a re cently published book on “How to Plan Your Financial Security,” addressed the opening meeting. He said each individual’s program can be divided in two phases. (1) provision for con tingencies, and (2) provision for re tirement. Three-Point Plan A. R. Jacqua, director of the Insti tute of Insurance Marketing, Southern Methodist University, Dallas, Texas, advised a three-point plan: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lakefield Change ROBERT E. PYE Secretary Minneapolis N. A. WELLE President Bemidji L. P. Peterson, vice president and cashier of the Farmers State Bank of Lakefield, Minnesota, has resigned to become vice president of the Montana National Bank of Havre. His succes sor is Thornton Getting. a S u ccess 1. Small savings fund for emergen cies. 2. A planned life insurance program. 3. Use of surplus to finance private enterprise through purchase of stocks and bonds. Arthur C. Regan, vice president and secretary of the First National of Min neapolis, talked on “ Investing in Bonds and Preferred Stocks,” explor ing the need for diversity in invest ment portfolios and general invest ment policies. G. Sidney Houston, vice president of the First Service Corporation, with which First National Bank is affiliated, discussed investment in c o m m o n stocks and investment trusts. He ad vised an adequate backlog of cash, life insurance, and possibly a home and some good bonds before entering on such a program. Home Best Investm ent Investing in a home or real estate was advised by Fred L. Chapman, vice president of Thorpe Brothers, Inc., Minneapolis realtors. He described a good home in a good neighborhood as the best investment in the world, pro vided purchaser has sufficient financial ability. At the final meeting, Abbott L. Fletcher, prominent Minneapolis at torney, stressed the importance of wills and estate planning to every man and woman. Few details that can be taken care of before death, can be ar ranged afterward by heirs, he as serted. Questions averaged about 50 in num ber at each session. Many women expressed the wish that such a pro gram could be made available for their husbands and arrangements for an additional Forum along this line are being worked out at the present time. New President Named Mrs. Amy T. White has succeeded her brother, the late A. L. Tollefson, as president of the First National Bank of Mabel, Minnesota. Mrs. White has served for many years as a director of the institution and is the fourth presi dent since it was founded as the Bank of Mabel in 1893 by Ellef L. Tollefson. In 1908 the bank was incorporated as a national bank and the present name assumed. Honor Richfield President Selmer L. Jerpbak, president of the Richfield State Bank, Richfield, Min nesota, was honored last month when he was awarded a life membership medal in the Society of American Legion Founders. The presentation was sent to him by A. J. Wickens, Dominian President of the Army, Navy, Air Force Veterans Association of Canada. This organi zation is one of international origin and recognizes the significance of vet erans’ organizations everywhere. Mr. Jerpbak is highly regarded in this association because he was pres ent in Paris, France, when the Ameri can Legion was organized. He was the first recording secretary. Remodel at St. Cloud Work on St. Cloud, Minnesota’s first “drive-in” banking facilities was begun recently at the St. Cloud National Bank. The present bank building is being expanded at the rear. A two-story addition, scheduled for completion this winter, will include a drive-in deposi tory for bank patrons, according to D. J. Fouquette, president. Complete Northome Bank New Hardwick Officer Harley R. Ladd has joined the staff of the Hardwick State Bank, Hard wick, Minnesota, as assistant cashier, Les Rolfs, cashier, has announced. Mr. Ladd was employed at the Luverne National Bank for eight years, then went to Cavalier, North Dakota, The remodeling job at the First State Bank, Northome, Minnesota, has been completed. The interior has been rearranged to present a modern effect. MORE MINNESOTA NEWS ON PAGE 47 Northwestern Banker, De ce m be r, 7949 42 MINNEAPOLIS bank official and a former Minneapolis bank presi dent died recently. They were Harry I. Ziemer, 55, vice president and secretary of the Federal Reserve Bank of Minneapolis, and A7. H. \7an Slyke, 85, at one time president of the former Metropolitan National Bank of Minneapolis. Mr. Ziemer, who was victim of a heart attack, started his banking ca reer in 1914 as a discount clerk with the First and Security National Bank of Minneapolis, now the First National Bank of Minneapolis. Three years later he joined the Federal Reserve Bank in a similar position. Mr. Van Slyke had been a director of the Minneapolis Federal Savings and Loan Association for 41 years. * * * Jacob A. Nelson, formerly associated with the Iowa banking department, has joined the Minnesota Investment Company as manager in charge of mortgage financing. * * * 1). O. Fredell, assistant secretary of the First Service Corporation of Min neapolis, recently was appointed to the committee on cooperation with other organizations by the National Association of Bank Auditors and Comptrollers at its 25th anniversary convention in Philadelphia. * * * Directors of Midland National Bank of Minneapolis recently voted a divi dend of $3.75 a share on the bank’s stock for the second six months of A the year. The dividend was payable November 15th to holders of record November 8th. * * * Lawrence Doherty, foreign exchange teller at the First National Bank of Minneapolis, served as Minneapolis ward solicitation chairman for the re cent Sister Elizabeth Kenny Founda tion fund appeal. Mr. Doherty’s son, Dennis, nine years old, contracted poliomyelitis previously but recovered and was able to return to school. * * * Arnold J. Ryden, Jr., accountant with the Northwestern National Bank of Minneapolis, addressed a discussion forum sponsored recently by the Min neapolis unit of the National Associa tion of Cost Accountants. * * * Deposits in Minneapolis and subur ban banks as of November 1st totaled $1,063,441,837, the largest amount since December 31, 1947. The Northwestern National Bank of Minneapolis continued to lead national banks in deposits, showing a gain of about $12,850,000 from the last bank call on June 30th, to reach a total of $349,889,311. The First National Bank of Minne apolis showed a larger gain in the four-month period with an increase of slightly more than $28,000,000, to bring total deposits to $334,567,645. The Farmers & Mechanics Savings Bank of Minneapolis reported an alltime high in deposits with a total of $155,826,152. SPECIAL OFFER Accident Insurance, $5000 Principal Sum for only $2.00 Paid Up in Full to the Middle of next March. MINNESOTA COMMERCIAL MEN’S ASSOCIATION 2550 Pillsbury Ave. So. N or th w es t e rn Banker, De ce mb er, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis 4, Minnesota 1949 J. Cameron Thomson, president of Northwest Bancorporation, has an nounced that Robert Forgan Maetavish, vice president and secretary of the Bancorporation, retired December 1st. Elected to succeed Mr. Mactavish as secretary of the board of directors was Richard L. Federman, comptroller of the Bancorporation since July 1, 1948, who now becomes comptroller and secretary. * * * First issue of a new monthly publi cation, The Marquetter, was distrib uted recently to employes of the Mar quette National Bank of Minneapolis, the University Bank of Minneapolis and the Chicago-Lake State Bank of Minneapolis. Russell L. Stotesbery, president of the Marquete Bank, said the new fourpage paper will be primarily for use of staff members. Temporary editor is Harold J. Vollmer. * * * Committee chairmen and vice chair men for the 50th anniversary conven tion of the American Institute of Bank ing, to be held in Minneapolis June 11 through 16, 1950, were announced recently by Hartwell F. Taylor, Rich mond, Virginia, president. The committee chairmen will serve as members of the general convention committee, headed by Clarence R. Chaney, vice chairmen of the board of the Northwestern National Bank of Minneapolis. Committee chairmen, listed first, and vice chairmen are as follows: Debate—Joseph B. Mulcahey, Lake street office, Northwestern National; Ronald B. Harrison, Marquette Na tional. Hall and Meeting Places—Arthur \\T. Johnson, Federal Reserve Bank; A. M. Blood, First National, Minneapolis. Hospitality— Ralph F. Spearing, Mid land National; Mary K. Cunningham, Lincoln office, Northwestern National. Personnel — John K. Ewing, First National; Royal AVelLs, Northwestern National. Hotels—D. E. Crouley, Northwest ern National: Zeldon Pellami, Federal Reserve. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Now a huge "N W — B AN K ” flashes in the Minneapolis skyline from the 157-foot sign on top of Northwestern’s banking quarters. Brightest sign west of Chicago, tallest bank sign in the world, it is surmounted by the world’s only Weatherball— a 10-foot illuminated sphere 367 feet above the street. The ball signals official U. S. weather forecasts that can be seen up to 15 miles. It’s Alw ays Fair W eather in Northwestern’s lobby, where a warm welcome awaits you whatever its new Weatherball may predict about the elements outside. Look for the sign next time you come to Minneapolis. It will tell you about the weather, which is so important to agriculture and banking in this area, and it will guide you to the bank which always stands ready to help you give your customers the finest of banking service. NORTHW ESTERN W EATHERBALL CODE W eatherball as W eatherball an w hite a s sn o w em erald green D ow n the temper- Forecast s a y s no ature w ill go. chan ge foreseen. W eatherball as W hen colors blink Tem perature is Th ere’s going to going higher. be precipitation. National Bank of Minneapolis Marquette A ven ue— Sixth to Seventh Streets Member Federal Deposit Insurance Corporation • Affiliated with Northwest Bancorporation Department of Banks and Bankers D. E. CR O U LEY, V ice P re sid en t F. W . CONRAD, V ice P re sid en t K . M . EARN ETT, A sst. C a shier L. P. G ISYO LD . V ice P resid en t A. F. JUNCE. A sst. C ashier L. IVI. BROOM , B e p r e s e n ta tiv e » estera Bank 44 OH THE BERUTI FUl GULF [ OBST OF FL ORI D« The P e r fe c t Sunshine M onths ■wS T . P E T E R S B U R G F LO il 1DA Utfui/fne (’ fty ” ir fum osi 100% sunsHinE JOHN J. D E W E Y , Managing Director W R IT E T H E Northwestern SO REN O Banker, Dece mbe r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 H O T EL FO R FU R T H ER IN F O R M A T IO N A N D L IT E R A T U R E Minnesota News 45 Information—P. W . Colbert, First the Minnesota League of Women Vot and at one time examiner for the National; Anthony (>. Dokken, North ers at the University of Minnesota. First Bank Stock Corporation in Min Mr. Litterer said taxes will be higher neapolis, recently was elected first vice western National. Publicity—W. A. Kramer, The Farm in the future unless people change president of the National Association ers & Mechanics Savings Bank, and their attitude about the services the of Bank Auditors and Comptrollers at Goodrich Lowry, Northwestern Na nationl, state and local governments the group’s convention in Philadelphia. Mr. Allen now is president of the tional, co-chairmen; Marion A. Matt shall render. * * * First National Bank of Milaca, Min son, Northwestern National. The First National Bank and The nesota. Utility— Charles A. Cells, First Na * * * tional; Donald D. Conner, Northwest Northwestern National Bank of Min Installation of two-way radio tele neapolis recently purchased $127,000 ern National. phone equipment in automobiles for worth of Minneapolis library bonds. Finance— O. S. Powell, Federal Re use by its home loan department in serve; Arnuld Ueland, Midland Na The rate of interest was IV2 per cent. =t= * * scheduling rapid appraisals of prop tional. Robert W . Fischer, tax and cost ac erty was announced recently by the Registration — Emmett J. Erickson, Farmers & Mechanics; William C. countant at the First National Bank Farmers & Mechanics Savings Bank of Minneapolis, participated in a re of Minneapolis. Bronner, Federal Reserve. * * * Public Speaking — Sumner G. Sin cent discussion of cost problems at a Arthur W . Sands, president of the clair, Northwestern National; F. Mari meeting of the Minnesota Society of Western State Bank of St. Paul, re Certified Public Accountants. ner Clark, Federal Reserve. * >t= * cently was named to a three-year term Transportation—Paul W. Petterson, as executive committeeman at the an Burton P. Allen, formerly with the Marquette National; Maurice G. Carl First National Bank of Minneapolis nual meeting of the state bank division son, First National. Women’s — Genevieve M. Nevin, Northwest Bancorporation; Genevieve Howe, Marquette National. Mr. Chaney, as general convention committee chairman, will be assisted by the following vice chairmen: AVilliam R. Chapman, Midland National; Christian Ries, Federal Reserve, and Ashton Carhart, First National. iiiiiiiiiiiiiiimiiiiiiiii * =t= * Oscar Ditterei*, industrial economist with the Federal Reserve Bank of Minneapolis, spoke recently at an in N A T IO N A L B A N K stitute on tax problems sponsored by THE FIRST IN ST. LOUIS S u rrou n iteti ST. LOUIS' LARCES7 BANK V *v ^s v' o' o': A ':* 4" You will find complete correspond ent banking facilities at the First National Bank in St. Louis. SURROUNDED by money she can’t spend is Gloria Swanson, sec retary in the Northwestern National Bank of Minneapolis. The money consists of foreign cur rency available through the North western National’ s market in the foreign banking department. Cur rencies of foreign nations are traded here at a discount in comparison with rates established abroad. Clarence A. Wisby is assistant cashier in charge of the bank’s for eign department. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis More than ninety years’ experience, personnel trained to fulfill all your needs, and modern equipment assure fast, efficient transit and collection service. We shall be pleased to serve as your St. Louis correspondent. M em ber F e d e r a l D e p o s it In s u r a n c e C o r p o r a t i o n Northwestern Banker, De ce mb er, 1949 46 Minnesota News of the American Bankers Association in San Francisco. Also at the convention the Minne sota Bankers Association for the elev enth consecutive year received the American Bankers Association agricul tural commission’s one-thousand point rating award for service to agriculture. * * * Twenty-nine Minneapolis and »sub urban banks recently turned over $2,016,516 to 32,807 participants in Christ mas Club savings accounts. Although the money total is about the same as last year, the number of individuals benefiting is up 4,800 from 1948, spokes men for the banks said. OL B A N K Arnulf Ueland, president of the Mid land National Bank of Minneapolis, and Mrs. Ueland, returned to Minne apolis recently following a ten weeks’ tour of Europe. They visited the home of Mrs. Ueland’s late father, Judge Andreas Ueland, in southwestern Nor way. Mr. and Mrs. Ueland also visited Sweden, England, Holland, Belgium, France and Switzerland. * * * Henry E. Atwood, president of the First National Bank of Minneapolis, and Homer P. Clark, honorary chair man of the board of the West Publish ing Company, St. Paul, recently were named directors of the Federal Re- a t the CARL L. FREDRICKSEN President YARD S "Look at the Record” MARK A . W ILSON Vice President "Look at the Record” and you'll see that many of our correspondents have used Live Stock National Bank service since it was organized 54 years ago in Sioux City. CLIFFORD L. AD AM S V ice President W ILLIAM C. SCHENK Asst. V . Pres, and Cashier JOHN S. HAVER Asst. Cashier As we close the books on 1949 and enter our 55th year next month, we say "Thanks a million” to these oldtimers and Holiday Greetings to all our correspondents. JAMES L. SMITH Asst. Cashier and Auditor KINLEY W . SMITH A sst. Cashier STANLEY W . EVANS A sst. Cashier L iv e S t o c k National Bank 4 SIOUX CITY MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION N o rt h w es te rn Banker, De ce mb er, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 serve Bank of Minneapolis, according to an announcement by Roger B. Shep ard, chairman of the board. Mr. Atwood was elected a class A or banker member to succeed Clarence E. Hill, chairman of the board of the Northwestern National Bank of Min neapolis, who was not a candidate for re-election. For the past three years Mr. Atwood has served as the Ninth District representative to the federal advisory council. Mr. Clark was re-elected class B di rector, one who is engaged in agricul ture, commerce or industry, but not banking. He has been a director since 1941. Both men will serve three-year terms, starting January 1st. * * * Minnesota’s 504 state banks and trust companies are in sound and healthy condition, and possibly in the strongest position in history, K. O. Sat ire, Minnesota state commissioner of banks, declared recently in St. Paul. Reporting on a call for condition as of October 17th, Mr. Sattre said the downward trend of the last three re ports had been reversed. The most recent tabulation showed a net in crease in deposits of $12,267,540 since the last call, June 30th. The increase was from $961,450,761 to $973,718,301. Loans advanced from $310,558,780 to $315,600,421, a gain of $5,041,641. * * * Bank installment loans in the mid west have grown rapidly in the last year, J. Cameron Thomson, president of the Northwest Bancorporation, re ported recently in Minneapolis at a conference of representatives of in stallment loan departments of Bancorporation affiliates. Nearly 29,000 more installment loan customers are being served today by affiliated banks than were a year ago, Mr. Thomson said. Other participants in the conference were Gilbert R. Falk, assistant secre tary of the Bancorporation and Man ager of its credit department; E. A. Mattison, executive vice president of Bank of America, San Francisco; Wil liam R. Chapman, vice president of the Midland National Bank of Minneapolis and chairman of the program commit tee, and Charles E. Harmon, vice presi dent of the Bancorporation. * * * Publication of a new series of ad vertisements on ‘W h y I’m Proud of America,” written by Herbert Wood ward, vice president of the Columbia Heights State Bank, began recently in the Columbia Heights Record, weekly newspaper of the Minneapolis suburb. A series of similar advertisements dealing with communism attracted na tional attention for Mr. Woodward last year. A' jk T r Y v~ / X 47 S o u th D a k o t a n NEWS TOM S. HARKISON CARL E. BAHM EIER, JR. President Sioux Falls Secretary Huron y V H unk M a n a g em en t Clinic Ms O u tstan d in g S u ccess EMBERS of the South Dakota L. C. Foreman Bank e r s Association attended Funeral services were held last their first annual Bank Management month for L. C. Foreman, 54, president Clinic in Huron on December 1st and 2nd. Under the able direction of Associa tion President Tom Harkison, presi dent, The National Bank of South Da kota, Sioux Falls; Carl E. Bahmeier, Jr., secretary of the South Dakota Bankers Association, and other officers of the association, an array of speak ers from diversified fields of the bank ing and business world made the meet ing an outstanding success. Prominent speakers appearing on the program included Sumner Sinclair, auditor, Northwestern National Bank, Minneapolis, Minnesota; A. E. Dahl, president, Rapid City National Bank, Rapid City, South Dakota; Arthur H. Quay, vice president, First National Bank, Minneapolis, Minnesota; Alonzo Petteys, vice president, Farmers State Bank, Brush, Colorado; Charles E. Har mon, assistant vice president, North western National Bank, Minneapolis, Minnesota; E. T. Baughman, research L. C. F O R E M A N director, Federal Reserve Bank, Chi Former president, South Dakota Bankers Association cago, Illinois; L. L. Mathews, vice 1895-1949 president, American Trust Company, South Bend, Indiana; Melvin C. Miller, deputy manager, American Bankers of the Corn Exchange Bank, Elkton, Association, New York, New York, and South Dakota. Mr. Foreman died in his sleep. He John Carlander, president, State Bank was a former president of the South of Faribault, Minnesota. H. N. Thomson, vice president, Dakota Bankers Association, serving Farmers & Merchants Bank, Presho, in 1946-47. Surviving are his widow and a South Dakota; J. M. Patton, president, daughter, Janet. Mitchell National B a n k , Mitchell, South Dakota, and Mr. Bahmeier pre sided at the various sessions. S io u x F a ils JXeirs RRING HAUGO, president of the Sioux Valley Bank, accompanied Council Appointment L. L. Lillibridge, president of the by Mrs. Haugo, went to Reno, Nevada, Burke State Bank, Burke, South Da to attend the annual convention of the kota, has been appointed a member of National Association of Supervisors of State Banks. He holds an honorary the business advisory council of the life membership in the association. school of business of the University of South Dakota, Vermillion. The From Reno Mr. and Mrs. Haugo went council is composed of fifteen South to San Francisco for the convention Dakota business and industrial leaders. of the American Bankers Association. M % % https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E O. A. Bray, assistant cashier of the Northwest Security National Bank, was elected grand treasurer by the grand council, Royal and Select Mas ters of South Dakota, at the annual meeting of South Dakota Masonic or ganizations in Mitchell. He was also named treasurer of the Order of the Annointed High Priesthood of South Dakota. * 4= * When Imperial Potentate Harold Lloyd of Beverly Hills, California, paid an official visit to El Riad Shrine here, the former movie star who is now a producer was escorted on a tour of hospitals by Tom S. Harkison, poten tate of the local temple and president of the National Bank of South Dakota. * * * C. A. Christopherson, chairman of the board of directors of the Union Savings Bank, presided at a United Nations institute here held under aus pices of the American Association for the United Nations, in collaboration with the Carnegie Endowment for In ternational Peace. He headed a local committee in charge of arrangements. Mr. Christopherson, a practicing at torney and former South Dakota con gressman, also addressed the Ex change Club, scoring the war aims of American militarists who display bel ligerent attitudes and fling careless challenges. * * * Sioux Falls business made its best showing of the year in October. All the usual business barometers, includ ing bank clearings, showed noticeable gains. The clearings, which were $23,855,506 in October, 1948, rose to $25,016,653 in October, 1949.—The End. Arthur Naslund Arthur Naslund, 51, president of the Farmers State Bank, Faith, South Da kota, died in Aberdeen recently from a heart attack. He is survived by his wife, two daughters, Lois and Mary of Faith, and one sister, Mrs. Ed Heider, Arkon, Iowa. MORE MINNESOTA NEWS Central Bankers Meet Vernon E. Mikkelson, registered rep resentative of Harris, Upham & Com pany, stock brokerage, and former president of the Fidelity State Bank, Minneapolis, addressed about 75 bank ers from Stearns, Todd and Benton counties last month in Minneapolis. They are» members of the central Minnesota %livision of the Minnesota Bankers Association. Mr. Mikkelson noted that real estate currently bears about 85 per cent of Northwestern Banker. De ce m be r. 1949 48 South Dakota News the Minnesota tax load and that “some thing should be done to replace part of this load with other taxes.” wife 15 years ago. Another daughter, Mrs. Leah Ryan, of Northfield also survives. Banking School Quota Junior Achievement Group Organized The Minnesota Bankers Association, through the office of Robert E. Pye, secretary, has informed its members that the state of Minnesota will be allotted 15 enrollees in the Central States School of Banking’s 1950 course at the University of Wisconsin in Madison. Because popularity of the school has exceeded space limitations, the board of trustees has found it necessary to limit attendance, beginning with the 1950 freshman class, to 175 enrollees. Basing its formula on an approxi mate 90,000 active bank officers in the Central States territory, the board of trustees set Minnesota’s quota at 15. Should some states not fill their quo tas, other states will be allowed to send more students, not to exceed the 175 total. C. M. Credicott C. M. Credicott, 90, former cashier of the First National Bank of Mapleton, Minnesota, died at the home of a daughter in New Ulm last month. He had lived with the daughter, Mrs. E. C. Veeck, since the death of his One of the newest corporations to be chartered under Junior Achievements, Inc., is the “Junior Achievement Lamp Company,” and the officers and direc tors of the energetic new company meet every Monday night in North Minneapolis to discuss the problems involved in the production and selling of their lamps. The officials of the group, which is being sponsored by Northwestern Na tional Bank of Minneapolis, are junior and senior high school students learn ing how the American system func tions by operating a segment of it in the form of a real live business. Junior Achievement, Inc., is a na tional organization “developing and expanding a spare-time educational program to give teen-age youth ex perience in ownership, management, and in working for something with a definite purpose and plan.” Organized in 1926, Junior Achievements last year had 963 companies in operating serving over 100,000 individuals in all parts of the country. When a Junior Achievement group is organized, and there are 75 already organized or in the process in the Twin Cities, each is sponsored by a local business and advised by mem bers of that company’s staff. The Northwestern Bank group be gan operations by selling shares for 50 cents each, with a limit of five shares to an individual. With this money the students will produce and sell lamps until May, at which time they will liquidate and pay off the stockholders. The bank supervises the corporation through three advisors: H. C. Luick, credit manager, who is chief advisor; Arnold J. Ryden, Jr., who is production advisor, and Wil liam Rich as sales advisor. 1 X A Expands Facilities To fulfill a growing need for addi tional operating space, American Na tional Bank and Trust Company of Chicago is taking over the eighth floor of the American National Bank Build ing at La Salle Street and Washington, according to Lawrence F. Stern, presi dent. Y « The eighth floor will house several operating units of the bank, as well as a new and enlarged lounge-cafeteria. T B E C A U S E — the investment requirements of your bank are given individual attention by our Invest ment Division .. . by men whose sound experience and background qualify them to render you this service. B E C A U S E —securities bandied for your account are bought and soldinthemarket. That means prompt, efficient service at the most advantageous price. BECAUSE—our Investment Division is prepared to consult with you on particular bond portfolio problems and to offer specific suggestions based on your individual needs V- % Our diversified experience is at your disposal. . . your inquiry is invited. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION LA S A L L E S T R E E T AT W A S H I N G T O N , CHICAGO 90 J Northwestern Banker. De ce mb er, https://fraser.stlouisfed.org y Federal Reserve Bank of St. Louis 1949 49 'S Xurlli Dakota council, he will represent these banks in studying new banking procedures and formulating policies, to be recom mended to the directors of the Bancorporation. Name Assistant Cashier *ï J. F. McENTEE President New England Wins 18th Award y The North Dakota Bankers Associa tion, under the leadership of their agricultural committee, of which F. A. Irish of Fargo is chairman, has for the 18th consecutive year made the honor record of 1,000 points in the competition between states conducted by the American Bankers Association, states A. G. Brown, national director of the A.B.A., in a letter to Mr. Irish. The letter also mentioned services of the work of Secretary C. C. Wattam of the North Dakota Bankers Associa tion and assistance given the program the past 18 years by the Greater North Dakota Association, which Mr. Irish serves as treasurer. Mr. Irish is chair man of the board of the First National Bank and Trust Company in Fargo. Retires at Langdon S V r After more than 40 years of banking experience, practically all of it as an officer of the same bank in Cavalier county, Gus Hartman retired recently as cashier of the Northwestern Bank of Langdon, North Dakota. He has been succeeded as cashier by Myles A. Johnson, a member of the bank staff since 1942 and assistant cashier since 1945. Mr. Hartman was elected assistant cashier of the Nekoma State Bank May 20, 1909, served that bank for a time as cashier, moved with it to Langdon in 1925 and stayed with it as an officer until his retirement as cashier, which became effective last month. He holds the undisputed long service record among Cavalier county bankers, and his record is probably one of the outstanding in the state. Increases Stock The Farmers and Merchants State Bank of Tolna, North Dakota, has been granted permission by the state bank ing board to increase its common stock from $15,000 to $50,000. J Group Officers Officers elected at the recent North Dakota Bankers Association group meetings are as follows: Southeast Group—President, A. W. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C. C. WATTAM Secretary Fargo Eastman, cashier, First National Bank of Milnor; vice president, Glen Dill, cashier, First National Bank of Oakes; secretary-treasurer, H. Lundhol m, cashier, First National Bank, Valley City; member state nominating com mittee, Fred McCartney, president, First National Bank, Oakes, and mem ber state executive council, Howard I, Turner, cashier, Farmers State Bank, Heaton. Northeast Group—President, O. K. Anderson, cashier, State Bank of Da kota; vice president, Leo C. Fischer, cashier, Walhalla State Bank; secre tary-treasurer, J. E. Bannerman, cash ier, Walsh County Bank, Grafton; member state nominating committee, A. A. Holmquist, vice president, First State Bank, Gilby, and member state executive council, John P. Lamb, cash ier, Lamb’s Bank of Michigan City. Northwest Group—President, W. L. McClung, cashier, State Bank of Kenmare; vice president, T. A. Solheim, vice president, American State Bank, Minot; secretary-treasurer, J. S. Westlake, cashier, Union National Bank, Minot; member state nominating com mittee, John Dickson, vice president, First National Bank, Williston, and member state executive council, Lloyd Nelson, cashier, Scandia American Bank, Stanley. Southwest Group—President, A. T. Zimmerman, cashier, Bank of Beulah; vice president, E. P. Daniels, cashier, First State Bank, New Leipzig; secre tary-treasurer, Herman Klaudt, cash ier, Bank of Hazelton; member state nominating commitee, C. O. Thomp son cashier, First Security Bank, Un derwood, and member state executive council, Theo. Sette, Bank of North Dakota, Bismarck. On Advisory Council P. J. Schirber, president of the James River National Bank, James town, North Dakota, was notified that he has been elected to the advisory council of the Northwest Bancorporation for a term of three years, to rep resent its 42 banks with individual resources up to $8,500,000. With five other members of the Kenneth Flom of Gary, Minnesota, is the new assistant cashier at the Security State Bank at Hunter, North Dakota. Mr. Flom was born and raised on a farm near Flom, Minnesota. He was a grain buyer for Cargill Elevator for a time. He served in the United States Navy for a period of three years dur ing World War II. He was in sev eral major sea battles in both the Atlantic and Pacific, and before coming to Hunter he worked in the Gary, Minnesota, State Bank. Joins Irving Trust Irving Trust Company has an nounced the election of William W. Pevear as assistant vice president of the company. Mr. Pevear joins the company’s staff to assist correspondent banks and cor- W IL L IA M W . P E V E A R Named assistant vice president of Irving Trust Company porations in the management of their investment portfolios. In his new ca pacity Mr. Pevear will not only serve customers and prospects at company headquarters, but will also travel throughout the United States. He has had wide experience in the investment field. Promoted at Chemical Joseph A. McFadden, formerly as sistant vice president, has been ap pointed vice president of Chemical Bank & Trust Company, New York City, according to an announcement made by N. Baxter Jackson, chairman. Northwestern Banker, De ce m be r, 1949 50 ^5 Com pleted Correspondent U N IT E D Fa ci li ties STATES J^aiional B A .Ä T K W 0 m alta MEMBER FEOERAl DEPOSIT INSURANCE CORPORATION ? £ | * | * J * J * | * j* | * | * j* | , Northwestern Banker, De ce mb er, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis XU 1949 X J \ . 51 idly, forcing the move to larger quar ters, with even the new building prov ing inadequate and several enlarge ments and remodelings having been necessary from time to time. Today’s resources are roughly 150 times as great as those of 1909. When the doors first opened resources to taled $86,113; today they come to $11,448,580. W. J. Stafford has been presi dent since 1943. » -'S New Cashier Named Remodel McCook Bank The erection of the necessary scaf folding for the remodeling of the McCook National Bank Building, Mc Cook, Nebraska, was started recently. The new front will be of polished Granux as a base and cast stone. By changing the entrance to the south end, space will be provided for a pri vate office and for additional desks. Heads Chamber Group y Joe W. Poynter, vice president of the Fort Kearney National Bank, Fort Kearney, Nebraska, was named presi dent of the Kearney Chamber of Com merce at the meeting of the new board of directors last month. William Halstead William Halstead, cashier in the First National Bank of Wilcox, Ne braska, for 34 years, died suddenly in the bank last month. /y Redecorate Sutton Bank At the meeting of the directors of the Spencer State Bank, Spencer, Ne F. T. Shaughnessy, cashier, and C. braska, held recently, Geo. D. Sedlacek E. Taylor, executive vice president, was elected to the post of cashier of Citizens National Bank, St. Paul, Ne the institution to fill the vacancy braska, recently completed a record caused by the recent death of Gus that would be hard to match in any Bentz. Mr. Sedlacek is well known to every other bank in the state. They finished a combined total of 80 years’ continu one in the county and surrounding ous service at the Citizens National territory, having been Boyd county Bank. treasurer for a number of years and deputy before assuming that office. 80 Years Service 40th Anniversary Forty years of business service in a town not quite 50 years old represents a very creditable record. The Scottsbluff National Bank began serving the people of Scottsbluff, Ne braska, and surrounding community in 1909. Last month the bank celebrated its 40th anniversary, and the officers held open house in honor of the occasion, entertaining about 3,000 guests. The bank’s business has grown rap- Toiirsnij N e b r a sh a J New Murdock Bank Murdock, Nebraska, which has in recent years been operating the Mur dock Co-operative Credit Association, is to have a new bank to replace the association. The stockholders of the association have held a meeting to discuss the proposition of liquidating the co-oper ative association, and the forming of the bank. The new bank will be known as the Corn Growers State Bank. The open ing date will be about December 15th. The capitalization will be $40,000. It is not anticipated there will be any change in the personnel of the banking force. The directors are to be August Ruge, Dan Schlaphoff, Mary K. Platt, Robert Van Pelt of Lincoln,, Herman Kupke, attorney, Edwin T. McHugh and Will Stock. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The First National Bank of Lincoln and the First Trust Company of Lin coln entertained a large group of Ne braska bankers at a buffet luncheon in the Terrace Room of the Lincoln Hotel last month. The luncheon was attended by ap proximately two hundred and fifty guests who, for the most part, attended the Kansas-Nebraska football game in the afternoon. The University of Ne braska Homecoming crowd added to the festivities. Wood River Bank Sold The City State Bank of Sutton, Ne braska, has recently completed the redecoration of the bank building. A new celotex ceiling is replacing the slightly worn plaster ceiling and a new paint job has been added to brighten the bank’s interior. À Lincoln Bank Luncheon Paul W. Shooll (above), associated with the N o r t h w e s t e r n B a n k e r for a number of years as field repre sentative and well known among hundreds of Nebraska bankers, is again calling on banks in the state of Nebraska. Mr. Shooll will be gathering news, among his other duties, and any courtesies extended to him will be appreciated by the N o r th w ester n B anker. Purchase of the Bank of Wood River, Nebraska, by W. E. Deam and James I. Deam of Hampton, Iowa, who have already taken over from the former owner, E. C. Huxtable, who organized the bank and who has been continu ously in charge since its organization, was revealed last month. W. E. Deam was for many years principal owner and executive man ager of the Farmers State Bank of Dows, Iowa, in which institution his son, James I. Deam, got his bank train ing. In March, 1947, James I. Deam purchased an interest in the Livestock State Bank of Artesian, South Dakota, serving as cashier until July of this year when he sold his interests with a view to locating in a larger town. James I. Deam has also purchased the residence property of Mr. Huxtable and will move his family to Wood River within a few weeks. The plans of Mr. Huxtable are indefinite, except to the extent of spending another win ter in Florida, as has been his custom in recent years. All parties to this transaction were represented by Charles E. Walters Company of Omaha, Nebraska. Northwestern Banker, De ce mb er, 1949 52 Russell J. Hopley, 54, president of the Northwestern Bell Telephone Com pany and a director of the United States National Bank of Omaha, died last month after an illness of about two weeks. Mr. Hopley was appointed U. S. civil f G OVERNOR and Mrs. Val Peterson of Nebraska and many high-rank ing military officers were spectators at the annual Ak-Sar-Ben Coronation Ball in Omaha late in October. The governor and his wife were guests in the box of W. B. Millard, Jr. Mr. Millard, president of the Omaha National Bank, served as King of AkSar-Ben during the war years. His reign has been the longest of any mon arch. Mr. Millard is a member of the Ak-Sar-Ben Board of Governors. James Leroy Welsh, Omaha grain man who was crowned King of Ak-SarBen, is a director of the Live Stock National Bank of Omaha, the United Benefit Life Insurance Company of Omaha and Union Stock Yards Com pany of Omaha and has been a leader in chemurgic research. He is a former president of the Omaha Grain Ex change. * * * J. Francis McDermott, whose wife, the former Emma Nash, is a former Ak-Sar-Ben Queen and active on the ball committee each year, also was in the Millard box. Mr. McDermott is vice president of the First National Bank of Omaha. * Ann Lucretia McDermott, daughter of the McDermotts, was ring-bearer to the Queen at the coronation. Among the former Omaha bankers who were guests at the ball was Jos eph F. Ringland, president of the Northwestern National Bank. Mrs. Ringland also is a former Omahan. The $808,000 which Omaha banks began paying out in Christmas savings the middle of November set a new alltime record for such payments in Omaha. The 1948 total was $663,000. Not all of the money goes for Christ mas presents, of course. A lot is used for fixed expenses—fuel bills, doctors and even income tax payments—and a lot more is used for other taxes or to bolster regular savings accounts. Nationally, banks cut a $300,000,000 Christmas savings melon, with custom ers saving every cent of it. * * * Y The Omaha National Bank’s house organ, “Around the Bank,” was pre sented with an Improvement Award at the recent annual conference of the Society of Associated Industrial Edi tors in Kansas City. Mary Gleason, a member of the magazine staff, at tended the conference to receive the award in person. A. J. Rhodes, as sistant vice president, is editor of the publication. * * * Daniel J. Monen, vice president of the Omaha National Bank, in charge of the trust department, and vice president of the Omaha Community Chest board of governors, thanked 4,500 volunteer Chest campaign work ers and thousands of contributors at a dinner during the recent annual drive. R U SSE L L J. H O P L E Y 1895-1949 defense director in March, 1948, by the late Secretary of Defense James Forrestal, and served that group nine months. During that time he drew up a plan for civil preparedness in the event of emergencies, such as war, or national catastrophes. Mr. Hopley was a native of Blue Island, Illinois. He joined Northwest ern Bell in 1915, advanced through various positions, including the dis trict managership in Des Moines, Iowa, from 1923 to 1929. He was named pres ident in 1942. He was also a director of the Ne braska Savings and Loan Association, Mutual Benefit Health and Accident Association, both of Omaha, and the IN ST. JO S E P H No Other Bank Gives You MORE* for YOUR MONEY Than the TO O TLE-LA CY Northwestern Banker, De ce m be r, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 MILTON TOOTLE FRED T. BURRI R. E. WALES GRAHAM G. LACY PRESIDENT CASHIER VICE PRESIDENT CH. OF THE BOARD Nebraska News Northwest Bancorporation, Minneap olis. Wade R. Martin, vice president of the Live Stock National Bank, and Mrs. Martin have returned from an extended western trip. At Reno, Ne vada, they attended the convention of the National Association of Supervi sors of State Banks. * * * Deposits in Omaha’s banks jumped more than $41,000,000 between July 1st and November 1st. At the same time loans dropped more than $3,000,000. On November 1st deposits totaled $417,994,177 and loans were $93,564,149. The July 1st figures were: Deposits, $376,763,760; loans, $96,342,646. The changes were regarded by bank ers as normal seasonal trends. The figures were in response to a bank call from the Comptroller of Currency. The figures by individual banks for November 1st: Deposits Omaha National ................ $147,938,101 First N ation a l..................... 86,439,429 72,702,320 U. S. National..................... Live Stock National........... 58,840,492 Stock Yards National......... 25,783,923 10,149,055 Packers N a tio n a l............... Douglas County B a n k .... 8,211,951 North Side Bank................. 5,699,638 South Omaha Savings. . . . 2,229,208 the Live Stock National Bank of Oma ha and the Bankers Trust Company of Des Moines participating. Present at the signing in Omaha were Charles Reed, Omaha Chamber of Commerce president; Holger Holm, Nebraska FHA director; Edward Calla han, Chase National Bank attorney; Albert Stelling, Live Stock National of Omaha vice president, and Axel E. Seastedt, president, and William Parkinson, secretary-treasurer of the corporation. * * * Presidents of the nation’s 12 Federal Land Banks met in Omaha recently. The semi-annual conference was held at the Omaha Federal Land Bank. The land bank presidents foresaw a “happy financial future.” I. W. Dug gan, Washington, D. C., governor of the Farm Credit Administration, of which the land banks are a part, de clared that the FCA is serving farmer borrowers better than at any time dur ing its entire history! Loans $26,957,306 19,212,267 13,558,085 22,252,716 4,740,897 1,756,774 1,660,283 1,562,477 1,863,344 9 +t Correspondent Service use C ontinental N ational m BANK EMPLOYEES PLACED Service °f~ L IN C O L N Member Federal Deposit Insurance Corporation C H A R L E S E. W A L T E R S CO . OM AHA. — ■ "that extra touch" in efficient Bought and Sold Sa tisfa cto ry Jßlncol+L — *7Ite. For Confidentially and with becoming dignity 44 Y e a r s Farmers and cooperatives on June 30, 1949, owned $132,772,000 worth of capital stock in various branches of FCA, highest total in history, Mr. Duggan stated. * =t= * Northwest Bancorporation directors at Minneapolis recently declared a dividend of 25 cents a share on stock. The corporation’s affiliated banks in Omaha are the United States National, Stock Yards National and South Oma ha Savings. It also has affiliated banks at Hastings and Norfolk, Nebraska. The dividend was payable November 25th to stock of record November 10th. It boosted to $1.20 the 1949 dividend, compared to $1 for 1948. * * 4= Two Omaha bankers were appointed consultant members of committees of the National Association of Bank Audi tors and Comptrollers at the group’s annual convention in Philadelphia. They are AY. Britton Knight, comp troller of the Omaha National Bank, *> * * 4= The Omaha Industrial Housing Cor poration, composed of 50 members of the Omaha Builders’ Exchange, recent ly received a Federal Housing Admin istration commitment on a $1,350,000 loan for a garden-type apartment proj ect of 176 units. The project is divided into two sec tions for financing purposes. The cor poration plans to build 320 more units on the site next spring. The loan was made by the Chase National Bank of New York City, with BANKS 53 NEBRASKA *MORE personal service — *MORE types of service — *MORE friendliness — *MORE people who are interested NATIONAL BANK E. H. SCHOPP ASST. VICE PRES. E. L. CRUME ASST. VICE PRES. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MILTON TOOTLE, JR. ASST. CASHIER GILBERT TOOTLE ASST. CASHIER in you. st. Joseph, mo. A. E. LA BOUFF AUDITOR N orthw estern Member Federal Deposit Insurance Corporation Banker, Decem ber, 1949 54 Nebraska News and J. B. Lichtenwallner, auditor of the Omaha National. A. S. Chaves, comptroller of the Live Stock National Bank, Omaha, was a member of a panel discussing “An Audit Program in Every Bank.’ Mr. Chaves was elected a member of the board of directors of the association. * * * W. Randolph Burgess, chairman of the board of the National City Bank of New York City, visited Omaha re cently. He was entertained at a luncheon by W. Dale Clark, chairman of the board of the Omaha National Bank, who is E x p e r t Hauti tiaavd W in# Affai a Q nju& àliqjcdb A d d r e s jo j jr a p h S tw in q iL Addressing by hand or typewriter method costs 10 times as much as the m o d e r n Addressograph method. Addressoqraph TRADEM ARKREGUSPAT mmJ I OMAHA — DES MOINES DAVENPORT CRACK SHOT—Allen J. Mart, guard and sharpshooter of the First National Bank of Lincoln, has for the second straight year won the Nebraska State Pistol Championship. Mr. Mart won the grand over-all and the championship by accumulating 1,965 points, this being 35 points over his closest competitor. The grand over-all is an accumulation of scores on matches fired, with the .22 caliber, the .38 caliber and the .45 caliber automatic. Mr. Mart also added to his laurels by winning the state police championship. This is fired with the police type .38 caliber revolver. Sharpshooter Mart has won numerous medals and says, “I haven’t counted them recently, but I think there are about 200.” These were won in matches all over the nation. His interest in competitive shooting dates back to 1930 when he first went into police work. He joined the First National Bank in 1935. a fellow member of Mr. Burgess on the board of directors of the Union Pacific Railroad. * * * Miss Ethel Mellor, manager of the women’s department of the Omaha Na tional Bank, served as a program com mittee member at the National Con vention of the Association of Bank Women recently in San Francisco. ir s t N a tio n a l B a n k oí O m a h a Í Oldest National Bank From Omaha West Member Federal Depusit Insurance Corporation N orthw estern Banker, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Decem ber, 1949 Nebraska News Carl A. Falk of Buffett & Company, Omaha investment banking firm, was one of four Omahans named to receive the Thirty-third Degree of Scottish Rite at the biennial session of the Su preme Council of the Southern Juris diction at Washington recently. Liquidate Bank Stockholders of the First National Bank of Weeping Water, Nebraska, recently voted for voluntary liquida tion. The bank, chartered in 1886, is the last remaining national bank in Cass county. The liquidation decision came after a number of bank officers decided to retire. Officers are: Henry A. Crozier, president; Ray C. Wiles, vice president; O. C. Hinds, cashier, and Charles V. Wallick, assistant cashier. Mr. Wallick, who has been with First National for 32 years, will join the staff of the Nebraska State Bank in Weeping Water. 55 OFFICERS G. E. Porter Chairman of the Board J. A. Greenfield P resident T. J. McCullough V ice P residen t M. E. Blanchard Cashier L. J. Komer Assistant Cashier Live Stock a Specialty The live stock business is fundamen tal to the First St. Joseph Stock Yards Bank. Our officers and employes know every phase of it. Our corre spondent banks derive the benefit of this knowledge. H. H. Broadhead, Jr. Assistant Cashier James Muir, President A boy who 40 years ago went direct ly from graduation ceremonies at his local high school in Scotland to begin work as a clerk in the Commercial Bank of Scotland is now president of Canada’s largest bank. He is James Muir, whose appointment as president of the Royal Bank of Canada was an nounced some time ago. Probably the best way to describe the new president of the Royal Bank of Canada is to use the word “enthusiastic.” He does a phenomenal amount of work with ap parent ease. His desk is always clean and he likes to meet problems head on and to make quick decisions. Mr. Muir is very democratic and one of the easiest men to meet. Recently he told a high school graduation class in Montreal, “Be broad-minded, friend ly and adaptable and adhere to com mon sense and simple fundamentals.” This is essentially Mr. Muir’s own philosophy of life. Acquires Four Branches Harvey D. Gibson, president of Man ufacturers Trust Company, New York City, has announced that the four banking offices of the National Bronx Bank, which bank was recently ac quired by Manufacturers Trust Com pany, will operate officially as branch offices of the latter institution. Y O U R STATE B A N K ER S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D T IM ELO C K EXPERTS F. E. DAVENPORT & CO. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OM AHA “ 0 A L Y B A N K IN T H E Y A R D S ’ Member Federal Deposit Insurance Corporation j¡í^[H 0US[ 9ndU cat& i ¿****x ¿ Another Loan SECURED WAREHOUSE m k RECEIPTS a f f i da eHbS bB ii-: li ED 633 □ □ □ □ □ The sign designates a Field Warehouse, storing merchandise against which warehouse receipts have been issued. The Warehouse Receipts are sound collateral for a bank loan. Bank inquiries are invited. ST. PAUL T E R MI NA L W A R E H O U S E CO. 511 DES MOINES OFFICE T. C. Cannon, M anager Iow a-Des Moines N at'l Bk. Bldg. OM AHA 1104 1st Nat'l Bank Bldg. 425 EAST E I G H T H S T RE E T ST. PAUL, MINN. N orthw estern Banker, Decem ber, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . . . guiding the Stars' majestic sweep across the Firmament. Too . . . there's a plan con trolling the Star Services Livestock National extends to correspondent bankers. Stars, its time-table is swift . . . accuracy. Like the its aim is Look over a few of these Star Services which, in the past year, have pro vided more than 400 correspondent bankers the best of correspondent facilities. ★ 24-HOUR TRANSIT SERVICE ★ INVESTMENT SERIVCE ON GOVERNMENT BONDS ★ SAFE-KEEPING OF SECURITIES ★ PARTICIPATION IN OVERLINES ★ CREDIT INFORMATION ★ INTERNAL OPERATIONS SURVEYS IIP Iow a N EW S J. F. KENNEDY President New Hampton Bluffs Banks Merge Merger of the two oldest banks of Council Bluffs, Iowa, the First Nation al and the Council Bluffs Savings, into a single 20-miIlion-dollar institution was announced last month. FRANK WARNER Secretary H H R I ■' Des Moines W wSm k m k . ÆÊ president; Roy Maxfield, vice presi dent; James B. Gronstal, assistant vice president; Lester F. Haas, assistant vice president; Philip A. Waite, cash ier; Ed H. Spetman, Jr., assistant cash ier; Robert E. Starr, assistant cashier; of Officers of County Bankers Asso ciations in Iowa, will be held Decem ber 21st at the Hotel Fort Des Moines in Des Moines. This meeting is in lieu of the meeting formerly held in conjunction with the Iowa bankers’ annual convention, thus affording a full day’s time to devote to a study of matters relating to “Bank Adminis tration and Operation.” President of the county bankers’ group is L. F. Kruse, former president of the Mills County Bankers Associa tion and president of the Mineola State Bank. The meeting will begin promptly at 9:00 a. m. and will close not later than 4:30 p. m. There will be no registra tion fee. Luncheon will be served to the group at the hotel. Sells Ashton Stock E. H. L O U G E E President Council Bluffs Savings Bank Directors of the 84 year old First National approved the merger when they bought a majority of the stock held by B. A. Gronstal, who is retiring as president of the Council Bluffs Sav ings Bank after 26 years with the in stitution. The new bank will use the name and building of the 93 year old Council Bluffs Savings Bank, one of Iowa’s old est such institutions. E. H. Lougee, investment banker and chairman of the Council Bluffs Savings board, will become its presi dent. L. W. Ross, president of First National, will become executive vice president. Other officers will be: E. H. Spetman, Sr., vice president; John Jurgens, vice president; F. W. Radtke, vice J. Steinbeck of Rubio, Iowa, has been named president of the Rubio Savings Bank at Brighton and Dr. M. L. McCreedy of Washington, Iowa, has assumed the duties as vice president of the institution. Mr. Steinbeck’s election followed the death of V. W. Flieg, former president of the bank. R. M. Yappen of Sibley, Iowa, has sold his stock in the Ashton State Bank, Ashton, Iowa, to E. C. Spengler of Sibley, and his son, Bernard Speng ler, who for the past year has been assistant cashier in the State Bank of Allison, Iowa. E. C. Spengler has been elected presi dent of the Ashton State Bank, to succeed Mr. Yappen and Bernard Spengler will soon become associated with the bank as an active officer. W. J. Johannes will continue as executive vice president and cashier, and all other active personnel will continue with the bank, which has $35,000 cap ital, $99,000 surplus, profits and re serves, and $2,355,000 deposits. Mr. Yappen, who is also president of the Sibley State Bank in Sibley, has been actively associated with the Ashton State Bank for more than 36 years. Mr. Johannes, who is also a member of the interim committee of the state legislature, has been active ly associated with the bank for the past 30 years. E. C. Spengler has been actively identified with banking in Osceola county since 1916. He was cashier of the Melvin Savings Bank for 20 years, and for the past 10 years he has been president and owner of the con trolling stock in the Ocheyedan Sav ings Bank, Ocheyedan. All parties to this transaction were represented by the Bankers Service Company of Des Moines, Iowa. Iowa Bank Conference Buys Controlling Interest l. Paul I. Gronstal, auditor, and Laverne Tollinger, trust officer. Charles E. Walters Company, Oma ha, handled the transaction. New Rubio President The annual state-wide banking con ference, sponsored by the Organization Did you know that your Banker’s Blanket Bond does not protect your Cash Letter while it is in transit by mail or express? Ask about our Cash Letter Policy, which fills the gap. F IR S T N A T I O N A L B A N K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B U I L D IN G w. ROSS Becomes executive vice president of Council Bluffs Savings Bank C H IC A G O Elmer Bowers of Mason City, execu tive vice president of the Farmers Scarborough & Company Insurance Counselors 3, IL L IN O IS STATE to Banks 2 4325 N orthw estern Banker, Decem ber, 1949 58 Iowa News State Bank, Grafton, Iowa, since No vember, 1948, has purchased the con trolling interest in that institution, it was announced last month at Manly, Iowa. The stock had been owned since 1946 by a group of Manly business men. of P.E.O., Order of Eastern Star, and the Sioux City Woman’s Club. Survivors include Mr. Gossett; two sisters, Mrs. Ward Minor and Mrs. Grace Crawford of Whiting, Iowa, and a brother, Nev McBath of Des Moines. New Bank Front Mrs. C. R. Gossett Workmen started recently cutting the old stone trimming on the front of the Decatur County State Bank at Leon, Iowa, to a level with the brick in preparation for an all new front. Private funeral services were held for Mrs. C. R. Gossett, who died re cently at her apartment at the Warrior Hotel in Sioux City, after a six weeks’ illness. She was the wife of C. R. Gossett, president of the Security Na tional Bank in Sioux City. Mrs. Gossett was a member of the First Methodist Church, Chapter IA ★ Joins Creston Bank Robert C. Power, a native of Green field, Iowa, and associated with banks in Winterset and more recently in Los ★ ★ Complete Facilities Through Sioux City moves a large part of the farm and livestock production of Iowa, Nebraska, South Dakota and Minnesota. Serving this rich area, the First National Bank in Sioux City, offers complete banking facilities to meet your banking requirements. May we serve as your correspondent in Sioux City? Angeles, California, has been named assistant cashier of the Iowa State Savings Bank of Creston, Iowa, it was announced last month by S. Ray Emer son, president. Mr. Power will succeed Ernest H. Porter, who resigned recently to go into the insurance and real estate business. Name New President A. E. Anderson, veteran Spencer, Iowa, banking official, recently was named president of the Clay County National Bank. He succeeds the late F. J. O’Brien who died unexpectedly last month. Mr. Anderson was one of the people instrumental in organizing the Clay County National Bank in September, 1927. At that time he was named cash ier of the bank, a position he held until his appointment as president. According to officials of the bank, Mr. Anderson will also retain his posi tion as cashier until a successor is named. Two Executives Die The executive staff of the First State Bank in Nora Springs, Iowa, suffered a double shock recently when two of its members died within hours of each other. The bank’s vice president, Lars Gulbransen, was buried on a Saturday; funeral services for a director, Frank Hofmaster, were held the following day. Increase Capital ★ ★ ★ A. G. SAM, Chairman of the Board J. T. Grant, President H. V. Bull, Vice President W. L. Temple, Assistant Vice President J. R. Graning, Cashier E. A. Johnson, Assistant Cashier H. H. Strifert, Assistant Cashier K. J. Shannon, Assistant Cashier E. E. Snell, Assistant Cashier BANK in SIOUX CITY MEMBER FEDERAL RESERVE SYSTEM MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION ---------★ N orthw estern Banker, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December, ★ 1949 ★ -------- Four Iowa chartered banks increased their capital a total of $160,000 by stock dividends recently, the state banking department reported. The Whitney Loan and Trust Com pany of Atlantic increased its capital from $100,000 to $150,000 by a stock dividend. The Jefferson State Bank of Jefferson increased its capital also from $100,000 to $150,000 by a stock dividend. The George State Bank of George retired $4,600 in reconstruction finance corporation preferred stock and in creased its capital from $25,000 to $60,000 by a stock dividend. The Dickinson County Savings Bank of Milford increased its capital from $25,000 to $50,000 by a stock dividend of non-voting preferred stock. Elect Everly Cashier David W. Cuttell of Spirit Lake, Iowa, has been elected cashier of the Everly State Bank, Everly, Iowa. Mr. Cuttell, who has been assistant cashier of the First National Bank in Spirit Lake, has resigned his position there and purchased an interest in the Ever ly Bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 59 Vou G et th e M o n e y Q u i c k l y The proceeds o f live stock All you need do is ask your sales in Chicago are speedily sh ip p e rs to in stru ct their transferred to your bank if Chicago commission firms to routed through us. The stock route through this bank the yards postoffice is just across m oney received from live the street and the advice is stock sales. We shall be pleased mailed on the day o f receipt. to send you instruction cards. L IV E S T O C K BA N K 'jia / io ììa / ESTABLISHED 1868 U N IO N STO CK YARDS M em ber Federal Deposit Insurance Corporation N orthw estern Banker, Decem ber, 1949 60 Iowa News New C a s h ie r N a m e d There is a new cashier at the Secu rity Savings Bank, Williamsburg, POSITIONS OPEN— Teller and bookkeeper positions open at one of Des Moines’ smaller banks. Give experience, age, in your letter. Write F.M., c /o The NORTH WESTERN BANKER, 527 7th Street, Des Moines, Iowa. Iowa. He is J. T. Heaney, who comes to Williamsburg from a like position with the Citizens Savings Bank of Sac City, Iowa. He has been with the Sac City bank ing institution for the past five years. His experience in the banking busi ness extends over a period of twentytwo years. Robert Stewart, the former cashier of Security Savings Bank, is moving to Cedar Falls to take up his work as accountant of the city utilities of that municipality. C e le b r a t e 6 0 th Y e a r The First State Bank of Churdan, Iowa, celebrated its 60th year of con tinuous service to the people of its area with an open house last month. The bank remained open until 10:30 in the evening. The bank was established back in 1889 by C. J. Martin and associates and was first named the Citizens Bank. In 1903 it was incorporated as the First National and in 1938 it was char tered as the First State Bank. Present officers are: Yates Allen, president; F. O. Bauer, vice president; H. W. Reading, vice president, and Joseph Hunt, cashier. N a m e O 'B r ie n O ffic e rs N O R T H t A S T E R N . O W The officers and directors of the First National Bank of Paullina, Iowa, entertained the O’Brien County Bank ers Association at its fall meeting at the American Legion Building last month. The association elected the follow ing officers: Fred J. Pylman, assistant cashier of the Sheldon National Bank, president; E. T. Peterson, executive vice president of Primghar Savings Bank, vice president; James W. Crav ens, president of Sanborn Savings Bank, re-elected secretary, and Ralph Hinman, president of the First Na tional Bank of Primghar, re-elected as treasurer. * b a n k er s » , p L v' Î ^ J 5©th Y e a r in K iro n W a te r lo 1 n a l B a n k oj , , . , y o U R a d v a n ta g e to find it to (L Officers and directors of the Kiron State Bank, Kiron, Iowa, were hosts to members of the Kiron community at an “open house” on December 3rd. This event marked the 50th anniver sary of the bank, which was founded in 1899 as the Boyer Valley Banking Company. The Kiron State Bank has advanced considerably from its financial situa tion when the bank was organized. In 1904 when the original banking company was chartered under state laws with its present name as Kiron State Bank, deposits were about $50,000 and capital stock was changed from $2,500 to $25,000. Deposits now total approximately $1,200,000. Total capital structure today is more than $50,000. G. A. Norelius, president of the bank, jj; s proln Pt , S c o n t J uvKURANCî THE IO N A L \N K OF ER LO O Did you know that this company pioneered in putting Bank Insurance on a scientific basis and forcing rate reductions? Ask us about our counseling service. Scarborough & Company Insurance Counselors F IR S T N A T IO N A L B A N K N orthw estern Banker, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B U I L D IN G Decem ber, 7949 • C H IC A G O 3, IL L IN O IS • STATE 2 4325 to Banks 61 OUR SINCERE APPRECIATION FOR YOUR GOODWILL AND PATRONAGE IN 1949 VALLEY BANK AND TRUST COMPANY DE S M O I N E S MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, Decem ber, 1949 62 Iowa News was first elected a director in 1905 and has served as a director and officer ever since. Cashier and executive offi cer since 1933 is C. E. Dahl. Other officers are J. E. Baker, vice president, and Velma Larson, assistant cashier. A feature picture show climaxed the day’s celebration. M eet a t Sh e n an d o ah Richard H. Mallory, vice president of the United States National Bank of Omaha, addressed the third annual fall meeting of the Southwest Iowa Bank ers Association recently. His topic was “The Chance for Small Business.” The meeting was preceded by a tur key dinner and the evening’s affair was presided over by Eugene W. Burdic, president of the Malvern Trust and Savings Bank, Malvern. Lee C o u n ty M e e tin g The Lee County Bankers Associa tion met at Grand Hotel, Keokuk, Iowa, for a dinner and meeting re cently and elected officers as follows: President, M. G. Addicks, vice presi dent, Citizens State Bank, Donnellson; vice president, Milton E. Lehring, cashier, Iowa State Bank, Ft. Madison, and secretary-treasurer, F. E. Breitenstein, State Central Savings Bank, Keokuk. About fifty were present. Mr. Jen kins of the insurance division of the Iowa State Bankers Association was the speaker. M a rk J . M y e rs Mark J. Myers, 74, senior vice presi dent of the Merchants National Bank, died in a Cedar Rapids, Iowa, hospital following a sudden illness. Mr. Myers was born September 9, 1875, at Marengo and was married to Maye Brazelton, November 18, 1918, at Chicago. A graduate of Washington high school and the Cedar Rapids Business College, he also attended Coe College. He started work with the Merchants National as a messenger 50 years ago and held virtually all positions in the bank. He had been cashier and vice presi dent of the organization since 1920. rr V P r e s e n ts T r o p h ie s The Fort Madison Chamber of Com merce was host to 415 4-H boys and girls, leaders and committeemen and women at the annual 4-H achievement banquet held in Fort Madison last month. The two loving cups furnished by the Citizens State Bank of Donnellson for the outstanding 4-H record books were presented by M. G. Addicks, vice president of the bank, to Austin Pranger of the West Point Boosters and Audrey Tucker of the Wever Beavers. MANY MIDWESTERN BANKERS, 1 0 M o i n e s JVetrs W H O S E C U S T O M E R S S HI P EW members of the Quarter Cen tury Club of the Iowa-Des Moines National B a n k will be awarded watches at the bank’s annual Christ mas party to be held at Younkers Tea Room on December 20th. Members of the staff of the bank and their hus bands and wives will enjoy dinner, dancing and games. * * * Officers and members of the staff of the Valley Bank and Trust Company plan to hold their annual Christmas party on Friday, December 16th. * * =1= Arthur H. Keyes, assistant vice pres ident of the Iowa-Des Moines National Bank, is reported convalescing nicely at his home following a recent heart attack. =(= * * John B. Monahan, assistant cashier of the Bankers Trust Company, was married last month to Viola Pueggel of Garner, Iowa. The wedding took place at St. Augustine’s Church in Des Moines. =k * * George C. Koss, president of the Koss Construction Company and di- L I V E S T O C K TO CHICAGO, R E CO G N I Z E THE GE NUI NE UTILITY OF DROVERS FRIENDLY SERVICE HERE IN THE ‘YARDS’ AT THE CENTER OF THINGS. Members, Federal Deposit Insurance Corporation N orthw estern Banker, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December, 1949 k N 4 w Iow a News rector of the Iowa-Des Moines National Bank, led the recent Community Chest Drive to a successful goal, reaching 101 per cent of the quota. * * * The first combination curb teller and night depository service in the nation was put into service earlier this month cretionary common trust fund to begin functioning immediately. The plan for the fund, entitled the First Discretionary Common Trust Fund of The Chase National Bank, has been approved by the New York State Banking Board and by the Chase board of directors. A discretionary fund per mits investment in securities other than those legal for trustees. Harris Trust Directors Add $3,000,000 to Surplus Directors of the Harris Trust and Savings Bank, Chicago, have approved the transfer of $3,000,000 from undi vided profits account to surplus ac count. After giving effect to this trans Bob Neswold of the Central Na tional Bank familiarizes himself with details of the new curb teller. by the Central National Bank and Trust Company. Other curb units are for teller duty only. It is the first curb teller unit in Iowa and the eighth installation for curb duty in the United States. Designed along the lines of regular drive-in banking service, this combina tion unit has a glass window, with mirror arrangement similar to peri scopes, and a smaller window opening onto a dumb waiter. The customer makes contact with the teller, who is located in the Central National base ment floor beneath the sidewalk, by ringing a buzzer on the curb side of the depository. Conversation is carried on by twoway loudspeaker. The small steel panel through which access is gained to the dumb waiter remains in a locked position until the teller raises the dumb waiter by operating a lever at his elbow. The night depository door is on the curb side of the unit and is the second night depository now in service for the Central National Bank. Mosler Safe Company and Duplex Electric Com pany are manufacturers of the curb teller equipment. New Trust Fund The Chase National Bank recently announced the establishment of a dis- 63 fer and adding estimated earnings for the remainder of the year, the invested capital of the bank on December 31, 1949, will be: Capital, $8,000,000; sur plus, $15,000,000; undivided profits in excess of $5,000,000, for a total of $28,000, 000. At a special directors’ meeting called last month, James L. Palmer, president of Marshall Field & Company, was elected to the board of directors of Harris Trust. Directors last month also announced the election of Everett Van Nice as a vice president of the bank and the promotions of Kent Duncan, formerly assistant cashier, and Thomas C. Barnes, formerly assistant secretary, In Sioux City EXPERIENCED EORRESPONDENT BANKING SERVICE C ’ E C U R IT N A T IO N A L OPSiOUX. Cîtÿ Member Federal Deposit Insurance Corporation Y O U R STA TE B A N K ER S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D T IM E LO C K EXPERTS F. E. DAVENPORT & CO. OM AHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker, Decem ber, 1949 64 Iowa News to the positions of assistant vice presi dent. Robert H. Long also was elected assistant secretary. Top 2 Billion Mark Bank of Montreal resources have surpassed two billion dollars for the first year-end in the bank’s history, while commercial loans and invest ments are at record levels, according to the bank’s 132nd annual report for the year ended October 31, 1949. Deposits of $2,019,142,698 constitute a year-end record and show an in crease of $142,000,000 over the previous year. Total resources now stand at $2,139,688,263 compared with $1,991,380,648 last year. Commercial and other loans increased $31,000,000 during the year, to reach $487,352,653, the highest yearend figure in the history of the bank. The investment portfolio of the bank increased to $1,168,000,000 from the previous year’s figure of $1,133,000,000. Net earnings, after taxes, amounted to $5,816,000, an increase of $357,000 over 1948. The traditional strength of the bank is emphasized by the transfer of $4,000,000 from the profit and loss ac count to bring the total reserve fund up to $48,000,000, as compared with paid-up capital of $36,000,000. Joins Drovers National Owe SSJJe C o m iw ^ 'lif e ! Christmas 1949 marks our D E P O S IT - B Y - M A IL S i m p l if i e d b a n k i n g b y mail. Tim e-saving convenience for c u s to m e rs...fo r you. H andle in slack periods, reduce er rors. Deposit slip bears post m ark , . . exclusive patented fla p protects contents. In desired papers and colors. W rite for sam ples and prices. 88th holiday John F. Keeley, widely known in midwestern banking circles as an au thority on consumer credit, has been appointed assistant vice president in the loan division of the Drovers Na tional Bank, Chicago, it was an nounced last month by George A. Mal colm, president of the bank. Mr. Keeley joins the official staff of the Drovers bank after varied experience with Chicago institutions for many years. season in Iowa. W hat a privilege to help make men and boys Set Conference Dates Dates for the annual Savings and Mortgage Conference of the American Bankers Association have been an nounced by Rowland R. McElvare, president of the A.B.A. Savings and Mortgage Division. Mr. McElvare is so happy . . . so long! T e n s io n E n velope Corp . Now Y o rk 14, N. V. M inn eap o lis 1, Minn, St. Louis } a, Mo. Des Moines 14, Io w a K an sa s City 8, Wo. Northwestern Banka:, December, 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .4 d r f t n c e n t r a t F ra n k e l’s DES MOINES Carl A. Bimson (above), senior vice president and director of the Valley National Bank of Phoenix, Arizona, has been elected executive vice president of that institution. He joined the Valley National in 1933 after nine years of engineering and property management experi ence. Mr. Bimson is a nationally known consumer credit authority. He is a brother of Valley National’s president, Walter R. Bimson. Iow a New s Two Promotions Announce Meeting Dates senior executive vice president of the Bank for Savings in New York City. The conference will be held at the Hotel Statler in New York, March 13 and 14, 1950, Mr. Elvare stated. The Financial Public Relations As sociation will hold its mid-year meet ing at the Hotel Statler, Buffalo, New York, February 18-22,1950. The group’s extension committee will meet on Feb ruary 18th and 19th. February 20th will be devoted to a regional confer ence. The board of directors and sen ior council meeting will take place February 21st and 22nd. R esig ns in Chicago The Federal Reserve Bank of Chi cago has announced the resignation of Charles B. Dunn, first vice president. Mr. Dunn expects to make his home at Los Altos and have his office in San Jose, California. Horace S. French, president, The Manufacturers National Bank of Chi cago, and William J. Grede, president, Grede Foundries, Inc., Milwaukee, Wisconsin, have been re-elected direc tors of the Federal Reserve Bank of Chicago for a three-year term com mencing January 1, 1950. 65 The association’s 35th annual con vention will be held September 18, 19, 20, and 21, 1950, in the Hotel Statler, Boston, Massachusetts, according to an announcement by the association’s president, John N. Garver, vice presi dent, Manufacturers & Traders Trust Company, Buffalo, New York. D. James Pritchard, vice president, So ciety for Savings, Cleveland, Ohio, has been appointed general program chair man. Promotion of E. M. Carver to assist ant vice president and D. S. Lockie to assistant secretary of California Bank has been announced by Frank L. King, president. SP EC IA LIZ ED SER V IC E TO M ID W EST BAN KS ß a + d zeA A L RUBBER STAMP, INC. 421 N inth S t e e e t à DES MOINES DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION Oldest in Des Moines 210 6th Ave. IO W A •LITHOGRAPHING •COMPANY FOUNDED BY CEORGE H. RAGSDALE • EDWIN G. RAGSDALE Dial 2-8303 ELMER E. MILLER Pres, and Sec. SECRETARY HUBERT E. JAMES Asst. Sec. B O O KB IN D ERS FOR YOUR ENJOYMENT . . . 515 TWENTY EIGHTH STREET Listen to the D E S •M O I N E S 44224 KOCH .BROTHERS “ WORLD OF MUSIC” QU A LITY - EX P E R IE N C E K R N T , 1350 KC •SERVICE 1 to 1:30 p.m. Sundays M A R Q U E T T E OF " THE STRONG MEMBER M I N N E A P O L I S FRIEND FEDERAL BANK OF THE DEPOSIT INDEPENDENT INSURANCE BANKER" rOURTH CORPORATION n D a v e n p o r t , F. E., an d C o m p a n y ........... 55-63 De L u x e C h e c k P r in t e r s , I n c ...................... 38 Des 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 ..................................................... 65 D o a n e A g r i c u l t u r a l S e r v i c e ......................... 34 D r o v e r s N a t i o n a l B a n k ................................. 62 INDEX OF ADVERTISERS F DECEMBER, 1949 A A d d r e s s o g r a p h S al es A g e n c y .................... 54 A llie d M u t u a l C a s u a l t y C o m p a n y ........... 39 A m e r i c a n 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 .......................................................... 48 A s h w e l l a n d C o m p a n y .................................... 35 26 65 31. 67 27 32 4 C C e n t r a l 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 ........... 9 C ha se N a t i o n a l B a n k ...................................... 8 C h e ls e a H o t e l ................................................... 36 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 ........................................................ 64 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 . . . 53 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 40 54 45 58 55 28 64 I I n v e s t o r s D iv e r s ifie d S er v ic es, I n c ........... I o w a - D e s M o in e s N a t i o n a l B a n k ........... I o w a L i t h o g r a p h i n g C o m p a n y .................. I r v i n g T r u s t C o m p a n y .................................... 35 68 65 22 1v K o c h B r o t h e r s ................................................... 65 L L aM onte, G e o r g e , an d S o n ........................... 3 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 . . . . 59 L i v e S t o c k N a t i o n a l B a n k — O m a h a ......... 5 6 L iv e S t o c k N a t i o n a l B a n k — -Sioux C i t y . . 46 M GRAND M e r c h a n t s N a t io n a l B a n k ........................ 2 M in n e s o t a C o m m e r c i a l M e n ’ s A s s o c i a t i o n ..................................................................... 42 M ississip p i V a l l e y T r u s t C o m p a n y ......... 31 M o s le r S a fe C o m p a n y ...................................... 25 N 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 Cas h R e g i s t e r C o m p a n y ........... 12 N o r t h w e s t e r n N a t io n a l B a n k .................... 43 O m a h a N a t i o n a l B a n k ................................... 21 P P o licyh old ers N ational L ife Insurance C o m p a n y ..................................................... : . 39 P u b lic N a t io n a l B a n k an d T r u s t C o m p a n y .......................................................... 29 S H H a r r i s T r u s t an d S a v i n g s B a n k ................ 30 H o m e I n s u r a n c e C o m p a n y ........................... 5 It B a n k o f M o n t r e a l ............................................. B a n k e r s R u b b e r S t a m p ................................. B a n k e r s S e r v i c e C o m p a n y , I n c .................. B an kers . T r u s t C o m p a n y — D es M o i n e s . . Ban kers Trust C om pan y— N ew Y o r k . . . B an ks, W i l l i a m H., W a r e h o u s e s , I n c . . . B u r r o u g h s A d d i n g M a c h in e C o m p a n y . . F i r s t N a t i o n a l B a n k — C h i c a g o ................. F i r s t N a t i o n a l B a n k — M i n n e a p o l i s ......... F i r s t N a t i o n a l B a n k — O m a h a .................... F i r s t N a t i o n a l B a n k — St. L o u i s ............... F i r s t N a t i o n a l B a n k — S i o u x C i t y ............ F 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 — S o u t h St. J o s e p h ........................................... F i r s t W i s c o n s i n N a t i o n a l B a n k ................ F r a n k e l C l o t h i n g C o m p a n y ......................... and DES M O IN E S M a r q u e t t e N a t i o n a l B a n k ............................. 65 M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . 39 St. P a u l - M e r c u r y I n d e m n i t y C o m p a n y . 38 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 . 55 S c a r b o r o u g h an d C o m p a n y .................37-57-60 S e c u r it y N a t i o n a l B a n k ............................... 63 S o r e n o H o t e l ...................................................... 44 T T e n sio n E n v e l o p e C o r p o r a t i o n ............. 64 T o o t l e - L a c y N a t i o n a l B a n k ..................52-53 U U n ited S ta te s N a t i o n a l B a n k ............... V V a l l e y B a n k a n d T r u s t C o m p a n y ...... 50 61 W W a l t e r s , C h a rles E., C o m p a n y ............. 53 W e s t e r n M u t u a l I n s u r a n c e C o m p a n y . . . 36 W h e e l o c k a n d C u m m i n s .......................... 34 W u n d e r A u c t i o n Sales S y s t e m ............... 29 N orthw estern Banker, Decem ber, 1949 66 Specific Answer A tourist lost his way and asked an Ozark native where a certain road led to. “ It just kinda peters out a few miles farther on,” replied the old fel low. “First it becomes a bridle path, then a hog trail, and finally a squirrel track that runs up a tree and ends in a knothole.” How True! Judge: How could you swindle all those poor people who trusted you? Prisoner: That’s it, Your Honor. People who don’t trust you can’t be swindled. Safety First Souse (rushing into jailhouse): Offisher, lock me up. I just hit my wife over the head with a club. Officer: Good heavens, did you kill her? Souse: Don’t think so. Thash why I want to be locked up. Night Shift “My wife talks so much, I never get a chance to tell her anything.” “Do like I do—put a note in your pants pocket for her to read during the night.” Sure Cure “Are you sure I will recover?” an anxious patient asked his doctor. “I’ve heard that sometimes you doctors give wrong diagnoses and have treated pa tients for pneumonia who afterwards died of typhoid fever.” “You’ve been misinformed,” replied the indigant medic. “When we treat a man for pneumonia, he dies of pneumofiia.” Late Reception “My wife will never go to bed before two o’clock in the morning—I can’t break her of the habit.” “What does she do all the time?” “Waits up for me.” No Hope Jackie: What’s the matter, grandpa? Grandpa: I’ve lost my glasses and I can’t look for them till I find ’em. Northw estern Banker, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis December, 1949 Right Answer Judge: Aren’t you ashamed to be seen here in court so often? Prisoner: Why no, Your Honor; I always thought it was a very respect able place. Modern Steno A boss was upset because his new stenographer was late. Fuming, he said as she finally came in: “You should have been here at nine!” “W hy?” she asked. “What hap pened?” Short and Sweet Teacher: Mary, this composition on milk was supposed to be two pages long and yours is only half a page. Mary: I wrote about condensed milk. CONy c n t io n s January 23-25, Second National Credit Conference, A .B .A .. Chicago, H o tel Sherman. January 23-26, 1950, Annual Midwin ter Meeting A . I. B. Executive Council, Sea Islands, Georgia, The Cloister. February 18-22, Mid-Year Meeting, Financial Public Relations Associ ation, Buffalo, New York, Hotel Statler. March 13-14, Annual Conference, Sav ings and Mortgage Division, A .B .A ., New Y ork City, Hotel Statler. May 19-20, 1950, Annual Convention, North Dakota Bankers Associ ation, Grand Forks. June 5, 6 and 7, 1950, Annual Conven tion, Illinois Bankers Association, Chicago, Hotel Sherman. June 11-16, 1950, 50th Anniversary Convention American Institute of Banking, Minneapolis. September 18-21, Annual Meeting, Financial Public Relations Asso ciation, Boston, Hotel Statler. September 24-27, Diamond Anniver sary Convention. A .B .A ., New Y ork City. October 22-25, 64th Annual Conven tion, Iowa Bankers, Association, Des Moines. Legal Tender A stingy husband, while out of town, sent his wife as a present a check for a million kisses. The wife, a little annoyed, sent back a post card, which read as follows: “ Dear Jim—thanks for the birthday check. The milkman cashed it this morning.” Something to Crow About Minister (finishing chicken dinner and looking out window): That’s a mighty proud-looking rooster. Host: Yep. One of his sons just en tered the ministry. In a Hurry “Dad, it says here that a certain man was a financial genius. What does that mean?” “That he could earn money faster than his family could spend it.” That Explains It At a large medical conference, one ambitious doctor leaned close to the one beside him and asked: “Where did Dr. Wilson make his fortune?” The reply was brief. “Stork market!” Bill Was Excited Hicks was a tall angular lad from the backwoods, who had never before seen a train. As he stood with his city cousin in the long station shed and watched the puffing engine and the long line of cars roar in, his face turned ashen. “What’s the matter, Bill?” asked the cousin. “My gosh!” gasped Hicks. “ If that dura thing had of come in sideways it would of wiped us all out.” Signs of the Times A preacher and his wife were wrecked on a desert island. After considerable exploration, they saw smoke rising from the other side of the hill. The preacher sneaked up to spy out the land and saw a group of white men around a fire, drinking from a bottle, cussing and telling dirty stories. He went back and told his wife: “Thank God, Mary! W e’re among Christians.” i t ★ WISE MEN o f a ll time have- realized/ the value o f Good Will. Ai^cl so, amcmg our cossets, we treasure most highlit https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the Good Will o f our aorrrspondewt hankers. To you, and bo all our fri in th e handing business, we sin cerely w ish a ChrlslnrO/S o f ¿read Joy and a New Yewr o f h ea lth an d prosperity BANKERS TRUST COMPANY 6th and Locust, Des Moines, Iow a Member Federal Deposit Insurance Corporation Member Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This Bank Offers Iowa Banks FAST TR A N S IT SERVICE Iowa's Largest Bank has complete facilities for prompt handling of items drawn on points anywhere in the United States. A well trained transit department, railroad connections in all directions, extensive use of air mail, and correspondents in key financial centers are important factors in this fast service. Iowa Banks and Bankers are cordially invited to make full use of the correspondent services of this Bank. Total Resources O ver One Hundred Million Dollars IOWA-DES MOINES NATIONAL BANK Member Federal Deposit Insurance Corporation
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