Full text of The Northwestern Banker : February 1933, 38th Year, Number 547

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Federal Reserve Bank of St. Louis

N AM ED
SUPERINTENDENT OF BANKING
FOR IO W A
(See p a g e 19)

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Federal Reserve Bank of St. Louis

o 4 Cedar Rapids Bank
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S erv icin g oÀll J o u a

CONTACTS
The contacts which the Merchants National
Bank of Cedar Rapids has built up during its
many years of uninterrupted service make this
institution unusually well fitted to handle your
Cedar Rapids items promptly and accurately.

MERCHANTS
NATIONAL BANK
O F F I C E R S
President, James E. Hamilton; Vice Presidents, H. N, Boyson, S. E.
Coquillette, Van Vechten Shaffer, Boy C. Folsom, Marvin R. Selden; Vice
President and Cashier, Mark J. Myers; Vice President and Trust Officer,
George F. Miller; Assistant Cashiers, Fred W. Smith, B. W. Manatt, L. W.
Broulik, Peter Bailey, R. D. Brown, and O. A. Kearney.

C edar R apids

Iow a

Northwestern Banker
Des Moines

The Oldest Financial Journal W est o f the Mississippi
FEBRUARY, 1933

Number 547

THIS

38th Year

ISSUE
Page

Across the Desk from the Publisher............................................. 10
Frontispiece, “ That Guiltiest Feeling” ......................................... 12
Iowa Legislates Confidence Into Her Banking System............. 13
There Is New Hope in the W orld................... Albert H. W iggin 15
News and V iew s................................................. Clifford De Puy 16
What Their Statements Show........................................................ 17
How the Investment Restrictions in the Glass Bill Will Affect
Your Bank..................................................... Francis H. Sisson 18
Superintendent of Banking for Iow a........................................... 19
Taxing M isfortune.........................................F. Robertson Jones 20
The Handwriting on the Investment W all.................................. 23
The Future for Life Insurance............................. Daniel Boone 29
B rief News from Iowa Banks................................J. A. Sarazen 44
South Dakota N ew s................................................................ 33
Nebraska N ew s......................................................................... 35
Minnesota N ew s....................................................................... 39
North Dakota N ew s................................................................ 43
Iowa Bank N ew s....................................................................... 45
Index to Advertisers............................................
54

C L IF F O R D D E P U Y
Publisher
H.

R. W . M O O R H E A D
A ssocia te Publisher
W M . H. M A A S
V ic e President
1st N ational Bk. B ldg.
C hicago

M e m b e r , A u d i t B u r e a u o f C ir c u la t io n s

F R A N K P. S Y M S
V ic e P resident
19 W e st 44th Street
Suite 1608
N ew York

J. A. S A R A Z E N
C irculation M anager

H. H A Y N E S
E ditor
F. S. L E W I S
S pecial R epresentative
218 E ssex B uildin g
M inn eap olis, Minn.

M em ber,
F in a n c ia l A d v e r t i s e r s

A s so c ia tio n

Northwestern Banker, published monthly by the DePuy Publishing Company, Inc., at 555 7th Street, Des Moines, Iowa.
Subscription, 50c per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1933.

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Federal Reserve Bank of St. Louis

N orthw estern B anker

F ebruary 1933

Providing an Ownership
Bonds
o f Approximately 200 Issues
* 1 ^HE strength and stability which have characterized the invest^ ments o f the largest institutional investors are due to two factors
beyond the reach of most individual investors. These are: ( d ) Diver
sification over prime obligations; and ( 2 ) Continuous supervision.
The cost of continuous supervision and of the investigations necessary
to sound initial selection are prohibitive even for many institutions
and other large bondholders. The capital investment required for
adequate diversification is too great for the majority of bond buyers.
It is to meet this situation that
TIFICATES

N O R T H A M E R IC A N B O N D TRUST CER

have been created. Through this single security an investor

may obtain:
I O wnership in bonds of approximately 200 issues, deposited in trust and held
in trust in the vaults of one of the country’s largest trust companies.
2_ A n investment in prime and selected obligations whose diversification is so

broad that risk in any single corporate issue is reduced to a minimum.
^ Safeguards and advantages heretofore available only to the largest individual
bond buyers and institutions, including supervision for the purpose of maintaining
the quality of the investment for the entire life of the trust.
Zj. A security which can be converted into its cash liquidating value through the
Trustee at any time in a manner and on terms fully set forth in a trust indenture.

orth

e r ic a n

B O N D TRUST

is not a unit type trust. Each certi

ficate represents an interest in the entire fund and is equal in value to
every other certificate of the same denomination.
N orthw estern Banker

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Federal Reserve Bank of St. Louis

F ebruary 1933

TRUST CERTIFICATES
Concerning the Underlying Bonds
O N D S initially deposited were selected
after more than a year of investigation and
analysis during which every bond issue listed
or commonly dealt in on the N ew York Stock
Exchange and the N ew York Curb Exchange
was examined. Bonds of 200 issues were se
lected from more than 2400.

© M ore than 80% o f these bond issues are se
cured by mortgage.
• M ore than 88% of the issues represented in
this list, or equally secured issues of the same
companies, are represented in the combined
portfolios of the six leading life insurance com
panies o f the country.
© The industrial companies, if taken as a group,
could liquidate or retire from business, dispose
of their combined fixed capital assets for noth
ing, pay off their current liabilities and still
have sufficient assets left to retire a funded debt
60 % greater than is now outstanding according
to latest annual reports.
• A ll o f the corporate issues are either listed
or commonly dealt in on the N ew York Stock
Exchange or the N ew York Curb Exchange and
are outstanding in the principal amount of at
least $5,000,000, exceptin g on ly equipm ent
trust certificates.
• As a group these corporations do business in
every state o f the United States and in eight of
the nine provinces o f Canada. Utility operating
companies whose obligations are held do busi
ness in 41 of the 48 states.
• Total funded debt of the corporations in the

list is only slightly more than 13 billion dollars
as compared with total net property accounts of
almost 26 V2 billion dollars and total assets of
more than 41 billion dollars.
© Except in certain instances specifically pro
vided for, all railroad and public utility cor
porations included earned their fixed charges at
least IV2 times on average during the five year
period ending with 1931 and corporations other
than railroad and public utilities earned their
fixed charges at least twice on average over the
same period. (T h e "over-all” method of com
puting ratios of earnings to fixed charges was
used wherever possible.)
• All of the corporations whose bonds have
been included in the initial list fully earned
their fixed charges even during the last fiscal
or calendar year for which published reports
were available on November 2 1 , 1932 .
© A composite balance sheet based on latest
annual reports of the industrial corporations
whose bonds are held shows cash and equiva
lent to be over two times all current liabilities.
Total funded and long-term debt is only 32 .7 %
of net property account.
• The railroad companies represented in the
list account for more than 43% of the railroad
mileage of the entire nation. They traverse the
country from the Atlantic to the Pacific and
from Canada to the Gulf. They are diversified
in character, in clu d in g granger roads, coal
roads, industrial roads, short lines and trans
continental systems.

Price: At the Market
Current return: approximately 5.11%
CAt present prices and based on bonds presently held)

Full details concerning the trust will he found in the standard Offering Circular, copies of which are available.

DISTRIBUTORS GROUP, INCORPORATED • 63 WALL STREET, NEW YORK
Owned by a Nationwide Group of Investment Houses
CHI CAGO

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B OS T ON

PITTSBURGH

PHILADELPHIA

LOS A N G E L E S

NEW ORLEANS

N orthw estern Banker

F ebruary 1933

CONTINENTAL ILLINOIS NATIONAL
B A N K A N D TRUST C O M P A N Y
OF C H I C A G O
Statement o f Condition, December 31, 1932

RESO URCES
CASH AND DUE FROM BANKS

$254,080,213.92

78,317,999.20

UNITED STATES GOVERNMENT SECURITIES
OTHER BONDS AND SECURITIES .
LO AN S: DEMAND
TIME

.
.

90,202,341.48

$11 9,81 6,909.65
344,999,1 59.46

225,182,249.81

STOCK IN FEDERAL RESERVE BANK .

4,200,000.00

CUSTOMERS’ LIABILITY O N ACCEPTANCES

7,506,087.1 0

OTHER BANKS’ LIABILITY O N BILLS PURCHASED

310,092.46

2,740,768.28

INTEREST ACCRUED BUT NOT COLLECTED

14,700,000.00

BANK B U IL D IN G .........................................................................

783,350.12

OTHER R E S O U R C E S .............................................................

$797,840,01 2.02

L IA B IL IT IE S

N orthw estern Banker

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Federal Reserve Bank of St. Louis

CAPITAL S T O C K .........................................................................
SURPLUS .

$ 75,000,000.00
25,000,000.00

UNDIVIDED P R O F I T S .............................................................

3,741 ,8 0 9 .3 2

RESERVE FOR DIVIDEND PAYABLE JANUARY 2, 1933

1,125,000.00

RESERVE FOR TAXES AND INTEREST

9,930,992.99

DEPOSITS: DEMAND

$489,595,282.91
183,528,320.53

673,12 3 ,6 0 3 .4 4

A C C E P T A N C E S ..........................................................................

8,1 54,424.97

TIME

OTHER BANKS’ BILLS ENDORSED AND SOLD .

310 ,0 9 2 .4 6

DISCOUNT COLLECTED BUT NOT EARNED .

670,738.72

OTHER L I A B I L I T I E S .............................................................

783,350.12
$797,840,01 2.02

T he ca p ita l stock o f the C on tin en tal Illin ois C om p a n y, h eld in trust
j o r the stock h old ers o f th e C on tin en tal Illin ois N a tion a l B a n k an d T rust C om p an y o f C hicago,
is n ot included in the a b o v e fig u res

F ebruary Í933

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Federal Reserve Bank of St. Louis

S ta tem en t o f C on d ition
of

T he First National Bank
[ Af f i l i at e d wi t h FIR ST BANK STOCK CORPORATION]

M in n e a p o l is , M in n e s o ta

At the Close of Business December 31, 1932

RESOURCES
Cash on hand and due from banks
U. S. Government Securities
.
.

.
.

$26,947,183.51
11,315,100.00

Veterans’ Loans Secured by U. S. Obligations 11,735,000.00 49,997,283.51
Loans and D i s c o u n t s ....................................
36,219,566.47
Bonds and S e c u r i t i e s ....................................
10,840,204.43
Subscription to Gold Notes, National Credit Corp.
.
770,000.00
O v e r d r a f t s ............................................................

7,081.17

Bank B u i l d i n g s ....................................................
1,078,544.56
Customers’ Acceptance Liability (LessAnticipations)
1,613,340.70
Bankers’ Acceptances Pu rch ased.....................
1,408,737.56
Interest Earned but not C o l l e c t e d .............
629,424.69
$102,564,183.09

L I A B I L I T I E S
Capital S t o c k ........................................................................$

6,000,000.00

SurPl u s .............................................................................

5,000,000.00

Undivided P r o f i t s ................................................................
Reserve for Interest, Expenses and Taxes . . . .
Interest Collected but not E a i ' n e d ................................

422,159.81
443,486.54
157,372.52

C i r c u l a t i o n ...............................................................................
Letters of Credit and A c c e p t a n c e s ................................
Unpaid Subscriptions to Gold Notes of the National
Credit C o rp o ra tio n ........................................................

4,141,600.00
1,613,340.70

D E P O S I T S ...............................................................................

84,016,223.52

770,000.00

$102,564,183.09

N orthw estern B anker

F ebruary 1933

December 31, 1932

Statements of Condition

The First National Bank o f Chicago
ASSETS
Cash and Due from Banks
United States Bonds and Certificates
Other Bonds and Securities
Loans and Discounts
.
.
.
.
Real Estate (Bank Building)
Federal Reserve Bank Stock
Customers’ Liability Account of Acceptances
Interest Earned, not Collected
a

Assets Transferred

$240,194,417.01
52,763,253.98
26,635,839.49
162,483,634.18
10,057,834.45
1,500.000.00
9,147,783.50
854,326.98

b y F o r e m a n -S ta t e N a tio n a l B a n k
a fte r D e d u c tin g R eserves

15.589,031.14
$519,226,120.73

LIABILITIES
$25,000,000.00
15,000,000.00
5,022,314.35
648,873.23
750,000.00
2,488,808.32
9,491,276.24

Capital Stock paid in
Surplus Fund
.
.
.
.
.
Other Undivided Profits
Discount Collected hut not Earned .
Dividend No. 202. payable Dec. 31, 1932
Reserve for Taxes, etc.
Liability Account of Acceptances
Time Deposits .
.
.
.
.
Demand Deposits
.
.
.
.
Deposits o f Public Funds .

$ 15.414,807.47
413,354,518.96
30,855,465.12

459,624,791.55
1.200,057.04

Liabilities other than those above staled

$519,226,120.73
„

T .

. i ..

Contingent liability

u n d e r C o m m e r c i a l a n d T r a v e lle r s L e t t e r s o f C r e d i t
G u a r a n t e e d l>y C u s t o m e r s

2,582,724.49

First U n ion Trust and Savings Bank
ASSETS
$ 61,619,602.04
8,382,950.00
22,326,166.13
16,349,578.92
58,754,055.00
9,172,975.67
2,178,755.37

Cash and Due from Banks
United States Bonds and Certificates
Time Loans and Discounts
Demand Loans
.
.
.
.
Other Bonds and Securities
.

...

* b y F o r e m a n - S t a t e T r u s t a n d S a v in g s B

Assets 1 ranslerred after D e d u c t i n g R e s e r v e s
Other Assets
.
.
.
.
.
.

$178,784,083.13
LIABILITIES
.
.
.

Capital Stock paid in
.
.
.
Surpl us Fund .
.
.
.
.
Other Undivided Profits .
.
.
Reserve for Interest, Taxes, etc.
Reserve for Bonds held and Contingencies
Time Deposits .
.
.
.
.
.
Demand Deposits
.
.
.
.
.
Liabilities other than those above stated

$ 10, 000, 000.00

5.000.
000.00
469,980.00
1,486,602.45
4.000.
000.00
$127,786,222.44
29,288,191.58

157,074,414.02
753,086.66
$178,784,083.13

Combined
Capital, Surplus and Profits
Deposits
.
.
.
.
.
.
Resources .
.
.
.
.
.

N orthw estern Banker

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Federal Reserve Bank of St. Louis

F ebruary 1933

5 60,492,294
616,699,205
698,010,203

a Withdrawal
into a Profit
EOPLE w ith draw m oney from
banks to spend it.

Practically only one ¡find of a with
drawal for one kind o f an expenditure
can be turned by the bank into a profit.
That is when a depositor takes out
money to spend on a trip— any kind o f
a trip— weekend, business, motor, rail
road, cruise, domestic or foreign. People
taking trips need American Express
Travelers Cheques. They need them
for safety's sa\e.
The prospect is already at the bank.
He is a depositor. A ll that is generally
needed to make him a Travelers Cheque
customer is a reminder, a suggestion as
to the risk o f carrying cash and an offer

to provide the Cheques. The Paying
Teller is in the strategic position to
make this sale.
W ith Travelers Cheques in his pocket
instead o f cash, the customer leaves the
bank feeling safer and grateful for the
bank’s advice. The profit to the bank is
one-half of one percent, with no red
tape and no risk. It was the working
out o f the Travelers Cheque system by
the American Express in 1891 which
made this profit possible.
•

•

Steamship tickets, hotel reservations, itineraries,
cruises and tours planned and booked to any part
of the world by the American Express Travel
Service.

AMERICAN EXPRESS TRAVELERS CHEQUES

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Federal Reserve Bank of St. Louis

AND TRAVEL SER VICE

N orthw estern Banker

F ebruary

c r o s s {Ae D esia i
r °t/ie P u blish er

Governor Her
ring of Iowa sug
gested a month
ago that foreclos
ures on farm mortgages in Iowa be temporarily
suspended pending action at this session of the
Legislature.
The Legislature has now worked out a plan of
arbitration, which bill at the time of going to press
with this issue of the N orthwestern B an ker , has
already passed the House.
The House bill creates a state board of arbitra
tion of nine members to appoint county boards to
endeavor to bring about adjustments between
debtors and creditors in an effort to keep farmers
on their land.
Under the bill, no foreclosures on a mortgage
on real estate could be started until the holder and
giver of the mortgage had submitted their rights
to arbitration by the county arbitration boards.
The state arbitration commission is to name the
county boards or commissions. The state body to
consist of one representative from each of the
nine congressional districts.
The House bill would suspend all court proceed
ings in foreclosure from the date of the application
for arbitration with the understanding that such
proceedings are to be suspended as long as findings
are in force which may be until March 1, 1935, the
date when the duties of the board are ended.
The bill also provides that notice of the arbitra
tion hearing must be published.
While there may be objections to this piece of
legislation, it at least brings debtor and creditor
together on a friendly basis and does not abrogate
the sanctity of contracts and obligations which
must be recognized if business is to continue to
function at all.

Adjusting Mortgage
Obligations by
Arbitration

N orthw estern B anker

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Federal Reserve Bank of St. Louis

February] 1933

To issue proclamations stopping all foreclosure
proceedings gives the wrong impression both to
the debtor and the creditor. Isn’t it better for the
two parties concerned to get together, talk over
their situation, and agree upon a satisfactory
arrangement than it is to have the debtor feel
that he is practically under no obligation to carry
out his agreement.
After all, the life insurance companies that have
loaned money to farmers have an obligation to
their policyholders to whom, by law, they are
being held strictly accountable.
No matter how serious our economic problems
may be, the annulment of contractual agreements
should not be advocated and let’s hope that this
arbitration plan will prove decidedly helpful and
beneficial.

“ These Little
■pj

1 awn o

In the recent debate in
i * the Senate on the Glass Bill,
hops genator Glass pointed out

the 80 per cent of banks that have closed in recent
years were capitalized for less than $25,000 each.
He then referred to these institutions as mo
nopolists and said, “ Who are the monopolists?
These little pawn shops that want to monopolize
the credit facilities of their own communities. They
are the monopolists. They want to erect by law a
tariff wall against credit facilities coming into
their provinces, into their territories, and loan
the business man, the merchants, and manufac
turers money upon reasonable terms and interest.”
No one will deny that banks which are estab
lished in the future should be capitalized for not
less than $50,000—that has been one of the reasons
why we have had many of our bank closings, be
cause the capital structure was not large enough.
I do not believe, however, that Senator Glass

adds anything to the arguments for his bill by re
ferring to banks as “ little pawn shops” when the
history of banking in this country will show that
these banks have not been monopolists of credit
but that they have loaned it back to their own
community, perhaps not wisely, but in many cases,
too generously, and as a result of which, they have
suffered along with the depreciated value of com
modities and land in their own territory.
If that be monopoly, it is not my understanding
of the term.
In every period of eco
nomic disturbance, there
are frequently men on the
street who feel that be
cause they are temporarily
out of work or otherwise
feeling the effects of a
period of depression that perhaps the firm for
which they work, or “ big business,” as they term
it, is reaping benefits which they do not enjoy.
Of course such reasoning is foolish because it
is obvious that in a civilization as complex as ours,
that what affects one group of individuals or one
group of industries, affects them all, and that
whether the business be manufacturing, agricul
tural or banking, unless there is employment for
all and a fair price for the products of the farm
and the products of industry, all must suffer cor
respondingly.
George E. Roberts, in his book on “ Economics
For Executives,” illustrates this very well by say
ing, “ AVhen this array of business interests which
are inevitable losers at every disturbance of busi
ness conditions is reviewed, one is prompted to
ask, ‘ where are the opposing interests powerful
enough to cause a crisis, and yet so isolated as to
gain when all these interests are losing?’ The
answer is that there are no such interests.”
Thus, each individual and each corporation is
really a loser during an upheaval of the general
normal business trends.

W h o A r e the
Beneficiaries
of an
Economic
Disturbance?

Climbing Up the
Economic Hill

1 have not read any
Statements by economic

authorities which did
not express the belief that we are gradually but
surely climbing back up the economic hill toward
brighter days and better business.
This point was emphasized again by Benjamin
M. Anderson, Jr., economist of the Chase National
Bank, in a recent address in Chicago, when he
said:
“ I have great confidence that things are clear

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Federal Reserve Bank of St. Louis

ing up, and that we have seen the worst of this
great national and world disorder.
“ The present economic situation, I believe, and
I think that we all believe, is on the mend. I
believe that the turn came in the banking situa
tion when the Reconstruction Finance Corpora
tion began to function.
“ I believe that we reached bottom in security
values in June and early July and I believe that
we reached bottom as regards volume of business
with respect to the season in the first week of
August.
“ My confidence rests on two considerations:
First, that progress has been made and that much
greater progress is in early prospect with respect
to clearing up the fundamentals of this disorder;
and second, the present business situation is worse
than even the fundamentals justify.”
If our general fundamentals are better than we
realize, this should give us faith in the future
and help to gradually bring the general business
of the country back to a better and sounder basis.

The Comptroller of the Cur
rency has just issued a complete
analysis of all the banks in the
country as of June 30, 1932, and
this shows a huge credit reserve in the form of over
$45,000,000,000 in deposits which will be available
for the use of business and industry when our up
turn gets fully underway.
A condensed picture of the banks of the country
is given in the following tables:

A Huge
Credit
Reserve

Total Banks
19,163

National
6,150

Other than Natl.
13,013

Loans and
Discounts $28,074,64:0,000 $10,281,676,000 $17,792,964,000
Investments 18,223,241,000
7,196,652,000 11,026,589,000
Capital, Sur
plus and
Profits..... 8,092,532,000
3,130,929,000
4,961,603,000
Deposits..... 45,390,269,000 17,460,913,000 27,929,356,000
Besources.... 57,245,131,000 22,367,711,000 34,877,420,000

The banking system of the United States is also
in a more liquid position than at any time in the
past two years. If the items, cash in the vault,
United States Government Securities and reserve
at Federal Reserve Banks and other Reserve Agen
cies, were added together, it would amount to 17
per cent of the total resources, and it is upon the
basis of these items that banks may extend their
credit to industry and to agriculture.
This 17 per cent figure compares with 14 per
cent in 1931, and 11 per cent in June, 1929.
Consequently, the banks are showing greater
liquidity now in their resources than at any time
in the past three years.

N orthw estern Banker

Febrnarij 1933

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Iowa Legislates C o n fid en ce into
Her Banking System
A n analysis of the ' 'B ank S ta b iliza tio n " b ill, recently passed by the Iowa
legislature, intended to make banks " ru n p r o o f" and to avoid bank
receiverships.
H IS “ Bank Stabilizing1” bill is in
tended to prevent bank “ runs” and
without the necessity o f receivership
proceedings, to permit banks to orderly
liquidate any slow or distressed assets. I f
for any reason a “ run” from false rumors
or any other reason should be precipitated
against any bank, or if because o f the
economic conditions its officers and di
rectors believe that it has reached the point
where more time should be taken fo r the
orderly liquidation o f its assets to meet
withdrawals, it may invoke either one o f
the two methods provided in the bill.

Application Must Come
From the Bank
It will be seen that the application for
any assistance must originate with and
come from the “ Officers or Directors”
themselves. This gives discretionary power
to the officers and directors of a bank to
tell fo r themselves if and when they may
need the assistance o f the State Banking
Department to handle an emergency sit
uation or emergency conditions applying
to their particular bank. That discretion
ary power does not originate or lie in the
Banking Department. Therefore, the hank
officers and directors must look to them
selves if they are to obtain the helpful
advantages o f this new statute, as the
Banking Department does not have the
authority to apply its privileges except
upon application from the bank officers
and directors.
It will be seen from Section 1 that after
an application for assistance has been
received from the officers and directors o f
a bank that the Superintendent o f Bank
ing must obtain either the consent o f the
Executive Council (which takes in the
Governor, Secretary o f State, State Treas
urer, Secretary of Agriculture and State
Auditor) or the consent of the Governor,
or the consent of the Lieutenant Governor.
A fter the officers and directors have
applied to the Superintendent fo r assist
ance to meet an emergency, and he shall
have obtained consent as foregoingly ex
plained, he may then take over the actual
management o f the bank, and in so doing
he may as he may deem to be fo r the best
interests of all parties concerned, permit
the local management of said bank to be
carried on as follow s:

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Federal Reserve Bank of St. Louis

It became operative on January 2 3 , 1 9 3 3
Either—
(a) By the present managing officers,
or
(b) By a part o f them, or
(c) By any suitable person or persons
he may select to conduct such management.
Duration of Management
It will be seen that the Superintendent
may, upon application of the officers and
directors o f a bank as foregoingly de
scribed, conduct the management for a
period “ not to exceed beyond one year
from the taking possession except with the
consent o f the Executive Council.” It of
course will depend upon the conditions that
surround the bank itself as to how long
the Superintendent may conduct the re
mote management o f said bank. He may
find that the emergency is only temporary,
or that the conditions that may have caused

To Frank Warner, secretary
of the Iowa Bankers A sso
ciation, goes much of the
credit for the introduction
and passage of this new
banking bill. The analysis,
presented here in part, was
also prepared in his office.

the embarrassment or distress to the bank
may end in a few weeks or in a few
months, and that the institution can under
its own officers and directors and stock
holders again go forward on its own power.
However, he may find that the conditions
o f distress may be of more permanent na
ture and that it might be necessary fo r him
to conduct the management o f the bank
fo r a period longer than one year. But,
if such were found to be the case, he must
obtain consent so to do from the Executive
Council o f the State o f Iowa.
At the end o f Section 1 there appears
the following :
“ all the remedies at law or in equity of
any creditor or stockholder against any

such bank or trust company shall be sus
pended, and the statute o f limitations
against such claims shall be tolled during
such period.”
This is believed self-explanatory; it is
to prevent any person who might seek to
throw a banking institution into receiver
ship while it was exercising the preroga
tives of this new statute.
It will be seen from Section 2 that fo l
lowing the time when the Banking Depart
ment comes to the assistance of the bank
officers and directors that a “ cut-oil” is
made in the business o f the bank and all
new deposits taken in after that date and
all new loans made after that date from
those deposits are to “ be segregated.”
Neither said new deposits nor said new
assets can be mingled with those in the
bank prior to the “ cut-off” date. Thus
the banking business o f the institution can
he continued on uninterruptedly while the
liquidation of the former old assets may
at the same time be going on, both being
done under the supervision o f the State
Banking Department.
Reorganization— Non-Assessable
Stock
This provision introduces in Iowa an in
novation in the way o f non-assessable bank
stock, getting away to a partial extent
from one o f the most iniquitous unfair and
impractical o f all bank requirements on
bank stockholders. Section 3, it will be
seen, provides that if the Superintendent,
of course consulting with the officers and
directors and stockholders, may find that it
is advisable to reorganize the bank apply
ing fo r his assistance under this act, he
may, when he has obtained “ approval o f
the Executive Council,” have power so to
do “ including the right to issue stock
* * * which shall be non-assessable.”
Thus this new “ Bank Stabilization” Bill
provides one more means to help in the
reorganization of banking upon a solid,
sound foundation. It makes it possible to
get additional officers and directors who
up to the time o f the enactment of this bill
have absolutely declined to purchase any
stock in banks or to serve on boards o f
directors o f reorganized banks because of
the endless assessment liability that they as
bank stockholders were assuming.
Prior to the enactment o f this “ Bank
N orthw estern Banker

F ebruary 1933

14
Stabilization” bill there seemingly was ac
tually no wav by which the State o f Iowa
could assist its banks during these trying
economic times when the collections of
notes were most difficult to make, with
which to pay their increasing withdrawals,
except to put such institutions into bank
receivership with its paralyzing effects
upon the local community.
It became
necessary in order to avoid such situations,
to develop a voluntary method under
which, with the assistance of depositors
through agreements by them with the
bank’s stockholders and officers, the dis
tressed assets in said bank might be re
moved and orderly liquidated by the de
positors or their trustees as set forth in the
“ Depositor’s Agreement” with the bank.
This new “ Bank Stabilization” bill now
recognizes the “ Depositor’s Agreement”
plan and gives the bank and its depositors
the opportunity to rehabilitate and to re
construct the business o f their local bank
ing institution under proper “ Depositor’s
Agreement” plans.
The Superintendent o f Banks, if it is
deemed best by all parties concerned, may
permit the restoration and rehabilitation of
the bank to be carried out voluntarily by
the depositors, with the bank officials and
stockholders through a proper “ Depos
itor’s Agreement” plan. Under such a
proper “ Depositor’s Agreement” plan this
new bill then provides that the same per
centages as used in the 1925 statute in
tended for the reorganization and reopen
ing o f banks that might be in receivership
shall now equally apply to banks to be
restored through a “ Depositor’s A gree

ment” plan. The percentages in that old
reorganization statute are set forth in the
following Section 9239-al of the 1931
code : “ If a majority o f the creditors hold
ing direct, unsecured obligations of such
bank in excess o f $10.00 each and totaling
in the aggregate amount 75 per cent o f all
direct unsecured obligations shall agree in
writing to a plan o f disposition and distri
bution o f assets * * *” all the other de
positors not signing such an agreement
shall be equally bound anyway. From the
foregoing Section 9239-al it will be seen
that if 51 per cent o f the depositors hold
ing direct, unsecured obligations o f such
bank in excess o f $10 each and totaling in
the aggregate amount 75 per cent of all
direct unsecured obligations shall agree in
writing through a proper “ Depositor’s
Agreement” plan, then all other depositors
of said bank not so signing shall be equally
bound. This section is intended to bind
any small minority that have sometimes
refused to sign under the voluntary “ De
positor’s Agreement” plan and have made
the work of those interested in the saving
and restoration o f their local bank some
times difficult in trying to get 100 per cent
signed up.
National Banks
Superintendent L. A. Andrew called the
Comptroller’s office at Washington, D. C.,
by long distance and set forth in general
the provisions and intentions o f this new
bill, and asked if there was any way by
which national banks might come under its
provisions. The Comptroller’s office is un
derstood to have said over the ’phone that

it greatly regretted that national banks,
being fully directly subject to the Federal
banking laws, could not, o f course, take
advantage of the provisions of this new
statute. Nevertheless, the adoption by na
tional banks of the voluntary “ Depositor’s
Agreement” plan is not to be condemned
when done in the proper way according to
the Iowa plan even if official sanction
and approval were impossible under Fed
eral laws to extend. National banks, how
ever, can get the indirect benefit o f this new
“ Bank Stabilization” act for the reason
that in any “ Depositor’s Agreement” plan
that they may desire to invoke they can
point out that a sound “ Depositor’s Agree
ment” plan is now recognized by Iowa law.
The Iowa Bankers Association, through its
voluntary “ Depositor’s Agreement” plan
stands ready to assist any national banks
that may desire aid.
Confidence Restored
It becomes apparent from inspection o f
this new7 “ Bank Stabilization” bill that
bank receiverships will be vastly reduced
in the future and will and should become
but the exception. Restoration and reha
bilitation in a banking institution on a
sound, fair and constructive basis is the
order of a new day that this new7 “ Bank
Stabilization” Act now brings into being.
Many favorable comments have already
been received upon this enactment and this
45th General Assembly and its leaders, in
cluding the Governor and Lieutenant Gov
ernor, have made enviable progress in a
reconstruction program fo r Iowa.

Text of S. F. 111
A “ Bank Stabilization” Bill intended (1 ) to make banks " run proof and (2 ) to avoid Bank Receiver
ships, Published Saturday, January 21, 1933, becoming operative on and from
Monday, January 23, 1933

An act amendatory to Chapter 412, Title 21 of the Code, 1931, extending the right of the Superintendent of
Banking to take possession of banking institutions without insolvency proceedings and to protect the debtors and
creditors of such institutions and to reorganize or operate the same as shall be set forth herein.
“ B E IT E N A C TE D B Y TH E G E N E R A L A S S E M B L Y OF T H E STATE OF IO W A :
S e c t i o n 1.
The superintendent of banking shall, upon application of the officers or directors of any state bank, savings bank or trust com pany or
private bank doing a banking business, have the power, with the consent of the executive council or of the governor or of the lieutenant governor to take over
the management of any such bank and may, at his discretion, manage the same either by its officers or a part thereof or by any suitable person or persons
he may select for such purpose. Such management, however, not to exceed beyond one year from the taking possession except with the consent of the ex
ecutive council. D u ring the period of such management and possession by the superintendent of banking, all the remedies at law or in equity o f any creditor
or stockholder against any such bank or trust com pany shall be suspended, and the statute of limitations against such claims shall be tolled durin g such
period.
S e c . 2. The superintendent of banking, whenever he shall have taken over the management of any such banking institution as provided in section 1,
shall have the right and power, with the approval of the executive council, to proceed to w ind up its affairs as provided by law ; or m ay continue the opera
tion of the same, holding all deposits in the same, taking in deposits and ca rryin g on the same under such rules and regulations as he may make for the
conduct of its business and deem for the best interest of the debtors and creditors of such institution, including the right to com prom ise any rights, claims
and liabilities o f such institution. I f such institution is kept open fo r business under the management of the banking department, and new deposits are
received, such deposits shall be segregated, and any new assets acquired on account of such deposits shall be segregated and held in trust especially fo r such
new deposits.
S e c . 3.
H owever, if in the opinion of the superintendent of banking it is deemed advisable to reorganize any banking institution as set out in section
1 hereof, he shall, with the approval of the executive council, have pow er so to do on such terms and conditions as he may prescribe, including the right to
issue stock upon such conditions as he, with the approval of the executive council, m ay prescribe fo r such stock, and which shall be non-assessable.
S e c . 4.
Nothing in this act shall prevent the voluntary adoption of any form of depositors ^agreement not now or heretofore in contravention of the
statutes thereto provided and under any such agreement the percentages as provided in section nfnety-two hundred thirty-nine a l ( 9 2 3 9 -a l), Code, 1931,
shall be fully applicable.
S e c . 5.
If, in the opinion of the superintendent of banking, with the approval of the executive council, it is advisable to sell, hypothecate or pledge or
exchange any or all of the assets of such banking institutions by said superintendent, the said superintendent is given the pow er so to do w ith the recon
struction finance corporation or w ith any other party he may select.
S e c . 6.
In so far as the provisions of this act may conflict with other acts or parts thereof, the provisions of this act shall control.

/ FRASER
N orthw estern B anker
Digitized for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

F ebruary 1933

Chairman of the Chase National Bank governing
board, in final report before retiring, finds finan
cial confidence greatly improved. He urges
adoption of a number of measures which will
still further speed recovery.

There Is
N E W H O P E IN THE W O R L D
T
A L B E R T H. W I G G I N

HE panic o f the spring and early
summer o f 1932 is over, financial
confidence lias greatly improved.
Eor the first time in three years we had,
in the autumn o f 1932, a better than sea
sonal improvement in business.
W e are passing from the period o f
emergency credit devices— Reconstruc
tion Finance Corporation, moratoria,
standstills, and the like— into a period
where the basis o f credit can be restored
by opening markets, starting the move
ment o f goods, balancing budgets, and
giving the farmers good prices by restor
ing their export market. Lausanne was
the starting point.

Government Unity
The sweeping victory o f Governor
Roosevelt and the democratic party re
stores unity to our government, giving us
president, senate and house o f the same
party and facilitating prompt and deci
sive action. It foreshadows a change in
our foreign trade policy through the re
ciprocal lowering o f tariffs at home and
abroad, fundamental to the restoration
o f our export trade, which would produce
a rally in farm prices and raw material
prices and thus restore our domestic mar
ket for manufactured goods.
The deadlock respecting interallied
debts, which is so great a deterrent to
our trade revival, is also made to look
much more promising by Governor Roose
velt ’ s statement that the congress has
not limited and cannot limit the power
o f the president to negotiate with fo r
eign powers, even though it retains the
power to ratify financial arrangements
which he may negotiate with them.

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Federal Reserve Bank of St. Louis

By ALBERT H. WIGGIN

Lausanne represented an immense fo r
ward step, and the good spirit mani
fested by France there should be borne
in mind by our people when they con
demn the regrettable French default of
December 15th. It is fa r more to our
interest to let our foreign policy be ani
mated by admiration o f England’s loyal
payment under great financial difficulties
than to let that policy be animated by
resentment toward France. Neither in
France nor in the United States was
public opinion made ready fo r a proper
handling o f the December 15th crisis.
Our own democracy will make some al
lowance fo r the difficulties o f democratic
government in France, and will accord
respect to the French cabinet which

" IN A PERIOD when taxes
on net earnings bring in ina d e g u a te
operations
taxed.
most
to

returns,
gross
must also be

The first and f o r e
consideration,

the

w elfare

basic

every

o th e r interest in the coun
try,

strong

United

States tre a su ry."

staked its existence— unsuccessfully— on
the proposal to pay.

My statement made in my Annual Re
port o f 1931 regarding interallied debts
has been frequently misquoted. I then
said that I was firmly convinced that “ it
would be good business for our govern
ment to initiate a reduction in these debts
at this time. ’ ’ I reiterate this view. This
is not cancellation. Had we faced this
question at that time, we should not have
the present prices o f sterling exchange,
raw materials and farm products. W e
have saved at the spigot but lost at the
bung.
A ll good bankers, dealing with embar
rassed but honest and competent debtors,
consider such compromises as are neces
sary. They collect all that they can, but
they usually expect to recover most by
keeping the debtor a “ going concern.’ ’
A creditor o f a good farmer embarrassed
by the break in farm prices will, for his
own protection, go very far in the effort
to keep the farmer on the land as an in
terested and responsible owner. It is
very generally to the creditor’s advan
tage to do this. Our creditor govern
ment, dealing with a foreign government
debtor, should apply the same general
principles, with allowance for certain im
portant differences, among them the facts
that in relations between governments
bankruptcy courts do not exist, that the
creditor government must consider public
opinion not only within its borders but
also in the debtor country, and that the
action o f the creditor government can
have a profound and far reaching effect
upon the general economic situation o f
N orthw estern Banker

Febrnarij 1933

16
the creditor country and o f the whole
world such as the action o f an individual
debtor would not have. But the general
principle o f working things out from the
standpoint o f what is good business for
the creditor, and recognition that it is
good business for the creditor in a high
percentage o f cases to keep his debtor a
“ going concern” and to permit that
debtor to hold up his head and retain his
self respect, apply in both cases.
Funding of Floating Debt
I have no sympathy with the view that
the funding o f the public debt must wait
until the budget is balanced. Both debt
funding and budget balancing are essen
tial parts o f sound public finance. Both
should be accomplished, and each as
speedily as possible. There is no doubt
at all in my mind o f the ability o f the
government to fund its debt at the pres
ent time at fair and proper rates.

German debtors have manifested splen
did good will and loyalty, and have done
more than they undertook to do. The
government, the banks and the business
community have cooperated in protect
ing the Reichsbank and the exchange
position, and in this they have had the
hearty support o f the masses o f the peo
ple who, trained by bitter experience,
have been resolutely opposed to every
suggestion o f cheapening the currency or
weakening the gold basis o f the currency.
Germany has gone through the year’ s
political controversies with an impressive
steadiness. Confidence, internal and ex
ternal, in the political stability o f Ger-

many, has greatly increased.
Recent
weeks, moreover, have brought a steadily
groAving situation, and there is statistical
evidence that these reports have real
foundation.
The prices o f German securities, both
in Berlin and in foreign markets, have
shoAvn marked improvement. This, in
part, has been a reflection o f growing fo r
eign confidence in Germany, but, per
haps even more, an evidence of confidence
by Germans themselves in the German
position. The most important single fa c
tor contributing to the revival o f confi
dence is, o f course, the Lausanne Agree
ment.

FTE R much “ H U E Y ”
and a
“ LONG” debate the Glass Banking
Bill passed the Senate, limiting
state wide branch banking to nine states
which already permitted branch banks for
state banks.
The bill also allows five years instead of
three fo r National Banks to divest them
selves of their security affiliates.
The bill will now go to the House for
consideration, where it is not expected to
pass.

D. C., and asked fo r the loan of $250 on
his personal note. He Avas told that Avhile
his credit Avas perfectly good, it w a s the
inflexible rule of the bank to require an
endorser.
“ The great statesman hunted up Daniel
Webster and asked him to endorse the
note.
“ ‘With pleasure,’ said Webster. “ But
I need some money myself. W hy not make
your note fo r $500, and you and I will
split it ?”
“ This they did. And today the note is
still in the Riggs Bank— unpaid.”

Sales Tax
I am in hearty sympathy with the pro
posal to derive revenue from the modifi
cation o f the Volstead Act, but believe
that the general manufacturers’ sales tax
will also be necessary if our government
is to have adequate revenue. In principle,
I dislike taxes on gross operations. I
much prefer, under normal conditions,
taxes on net business profits and other
net income. But the government must
have money, and must get its money
where the money is to be found. In a
period when taxes on net earnings bring
in inadequate revenue, gross operations
must also be taxed. The first and fore
most consideration, basic to the welfare
o f every other interest in the country, is
a strong United States Treasury.
Discourage Branch Banking
I believe that every community which
can afford to support strong, independ
ent local banks should have them. I favor
branch banking in the city o f the head
office, as well as county-wide branch
banking so that inadequately capitalized
banks in villages may become inexpensive
offices o f strong county seat banks. Na
tional banks should have the same branch
banking power that state banks have
under the laws o f the states in which they
exist. States where banking capital is
scarce may be well advised to adopt state
wide branch banking, or even to admit
branches from institutions in other states.
But it would be very unfortunate if New
York City banks were forced into com
petition with one another in purchasing
local banks and converting them into
branches, in cities perfectly well equipped
in capital and trained banking manage
ment to handle their own banking prob
lems, o f which there are so many in New
York state.
The German picture is very much more
encouraging than it was a year ago. The
N orthw estern Banker

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Federal Reserve Bank of St. Louis

F ebruary 1933

ELVIN A. TRA YLO R, president of
the First National Bank o f Chicago,
in his 69th annual report, points out that
HEN I was in Omaha the other day
stock of the bank is held by 987 women,
I Avas interested in discovering that
1,645 men, 122 firms and corporations, and
STAN LEY FIELD , chairman of the ex
279 trusteeships and estates. The stock of
ecutive committee o f the Continental Illi
the First Union Trust and Savings Bank
nois National Bank & Trust Company o f
is held in trust fo r their benefit.
Chicago, is the son o f JO SE PH N.
FIELD , who Avas the first cashier of the
Omaha National Bank.
R. CAIN, JR., vice president o f the
The Omaha National Bank began busi
• Omaha National Bank and president
ness on July 2, 1866. The officers Avere
o f the National Bank Division of the
E ZR A M ILLARD, president, and JO
A. B. A., is arranging fo r the meeting of
SEPH N. FIELD , cashier. The First
some 5,000 bankers from Nebraska, Iowa,
published statement as o f October 1, 1866,
Kansas, Missouri, North and South Da
showed a capital stock o f $50,000.00, de
kota, Minnesota, Wisconsin, Colorado,
posits o f $120,000.00 and total resources
Wyoming, who are being invited to attend
o f $219,000.00.
a regional bank management conference in
J. N. FIE L D had resided in Sioux City,
Omaha, March 15th and 16th.
IoAva, some tAvo or three years AA7hen in
The main topic fo r discussion will con
1866 he joined E ZR A M ILLARD in
cern methods of operation which have to
Omaha and as cashier signed the first bills
do with better bank management.
issued by the Omaha National Bank. Mr.
Field took fifty shares o f the bank stock
NE o f my banker friends— I believe
at the time o f the organization. At the
it was W . G. C. BAG LEY, president
time of his death in 1915 this original hold
o f the First National Bank o f Mason City,
ing had groAA'n to 1,000 shares.
sent me the following story about H E N R Y
Mr. Field severed connection with the
CLAY and D A N IEL W E B STE R :
bank within a feA V months and joined the
“ One winter morning Henry Clay, find
ing himself in need of money w7ent to the merchant house o f Field, Leiter and Com
pany, Chicago, headed by his brother MarRiggs National Bank in Washington,

W h a t Their Statements Show
( As of December 31, 1932)
Editor’s Note: ÎH E NORTHWESTERN BANKER invites its readers to forward their
bank statements to us and they will be published herein, from time to time.
Cash and Due
Deposits
from Banks
$
329,053 $ 1,264,261
1,280,972
177,093
826,294
104,879
16,161,549
5,580,369
1,416,412
172,425
1,093,371
8,278,131
47,648
310,014
421,553
2,549,984
7,290,281
24,390,593
813,292
3,548,561
368,321
3,100,639
933,916
3,435,564
79,297
556,036
419,602
2,198,890
510,399
2,950,972
385,308
1,897,481
64,201
545,527
1,681,981
4,592,266
1,260,538
4,444,665
32,456
82,181
32,089
211,091
121,811
489,993

Total
Resources
1,378,751
1,581,867
688,235
18,217,359
2,002,556
10,013,914
391,309
3,157,165
28,651,372
4,853,077
3,535,993
4,297,297
669,578
2,421,042
4,189,698
2,066,164
685,999
5,252,776
5,252,829
114,580
307,071
638,374

29,603

25,000
400,000

90,902
135,466

145,710
2,097,929

38,269
1,718.005

34,361
568,172

82,874
3,907,613

237,917
5,313,241

20,000
250,000

51,500
321,552

140,807
1,416,747

259,202
1,817,496

153,380
1,208,946

487,154
4,153,134

572,381
4,987,762

...

1,250,000
450,000
1,250,000

342,624
164,441
1,125,741

4,577,126
2,537,964
12,135,253

9,657,919
75,764
4,209,915

5,198,252
1,284,712
9,498,384

19,500,428
4,065,039
24,603,203

21,093,052
4,937,495
28,101,972

.. .
...

100,000
25,000
6.000,000
7,000,000

160,833
7,564
5,422,159
*281,575

605,937
120,226
36,219,566
37,211,091

1,686,755
244,143
22,155,304
21,003,545

496,020
84,403
26,947,183
27,303,910

2,591,806
422,790
84,016,223
78,780,161

2,892,422
474,054
102,564,183
87,980,805

. . . 4,000,000
. . . 75,000,000
. ..
1,000,000
350,000
. . . 25,000,000

1,000,000
28,741,809
651,265
694,534
20,022,314
8,249,607
503,184
348,061

14,475,505
344,999,159
5,635,265
3,360,028
162,483,634
32,329,609
6.590,810
4,890,181

7,655,556
168,520,340
3,805,960
1,387,306
79,399,093
85,983,590
2,493,891
2,167,212

63,118,487
254,080,213
6,152,737
899,937
240,194,417
44,070,754
2,285,953
1,161,970

80,442,535
673,123,603
12,874,775
4,345,797
459,624,791
144,340,626
9,505,193
6,937,743

85,703,909
797,840,012
15,671,697
5,647,273
519,226,120
165,248,234
12,171,670
8,306,025

...
T o led o................... ...N a t io n a l Bank .......................................................
N O R TH D A K O T A
B u ffa lo................... . . .F i r s t N ational B a n k ............................................
Grand F o rk s . . . . .. . F i r s t N ational B a n k ............................................
SOU TH D A K O T A
Elk P o in t ............. . . .U nion County B a n k ..............................................
Sioux F a lls......... ...S e c u r i t y N ational Bank and T ru st.................
N EBRASKA
O m aha................... ...F ir s t N ational B a n k ............................................
O m aha................... ...L iv e Stock N ational B a n k ..................................
O m aha................... ...O m a h a N ational B a n k ........................................
M IN N E SO TA
B ra in erd ............... ...F i r s t N ational B a n k ............................................
M abel..................... ...F ir s t N ational B an k ............................................
M inn eapolis........ ...F i r s t N ational B a n k ............................................
M inn eap olis........ ...N o rth w e s te rn National B an k ...........................
IL L IN O IS
C h ica go................. . . .C ity N ational Bank and T ru st.........................
C h ica go................. ...C o n tin e n ta l 1 1 1 . N at’l Bank & Trust C o ....
C h ica go................. ...D r o v e rs N ational B an k ......................................
C h ica go................. ...D r o v e r s Trust and Savings B a n k ...................
C h ica g o................. . . .First N ational B an k ............................................
C h ica go................. . . .N orthern Trust Co................................................
C h ica go................. ...S t o c k Yards N ational B a n k ..............................
C h ica go................. ...S t o c k Yards Trust and S avin gs.......................

. ..

...

Capital
100,000
50.000
500,000
150,000
400,000
370,000
2,000,000
150,000
60.000
100,000
200,000
100,000
75,000
200.000
250,000
25,000
***55,348
50,000

2,000,000
337,500

Surplus
and Profits
$
64,489
31,270
11,940
1,058,110
76,324
321,060
31,295
*37.180
1,114,387
241,136
267,633
360,254
43,542
122,151
209,375
61,183
65,472
216,567
264,926
7,389

Bonds and
Securities
651,619
201,043

Loans and
Discounts
373,578
319.483
548,312
5,853,817
1,144,427
4,365,674
212,494
1,298,319
9,156,234
1,482,207
1,694,635
1,213,663
217,398
1,555,606
2,878,336
**1,447,526
380,100
1,771,821
1,409,454
**77,083
195,856
320,813

IO W A
BANK
TO W N
A lg o n a ................. . . . .Iowa State B a n k .....................................................
A m es..................... ...U n i o n Story Trust & Savings B a n k ...............
Tirpda
Cedar Rapids . . . ....T h e M erchants N ational B a n k .........................
Charles C ity. . . . . . . First Security Bank & Trust Co.......................
C lin ton ................. . . . T h e City N ational B a n k ......................................
Coon R ap id s. . . . . . . The First N ational B an k ....................................
Council B lu ffs ... ...F ir s t N ational B a n k ............................................
Des M oines.......... . . . .Iowa-Des Moines N at’l Bank & Trust C o.. . . . . .
Des M oines.......... ...V a lle y N ational B a n k ..........................................
Des M oines.......... . . . .Valley Savings B a n k ............................................
D ubuque............... . . . F irst N ational B a n k ..........................................
G rin n ell............... . . . Grinnell State B a n k ............................................
M arshalltow n. . . . . . .Fidelity Savings B a n k ........................................
M on tieello............ . . M ontieello State B an k........................................
N e w to n ................. ...J a s p e r County Savings B a n k ...........................
Schleswig-............. . . . Farm ers State B an k ............................................
Sioux C ity ........... . . . Live Stock National B an k ..................................
Sioux C ity ........... . . . Security N ational B a n k ......................................

5,899,650
674,367
3,218,719
108,030
1,257,395
8,184,888
2,247,569
1,470,036
2,043,000
297,445
387,029
748.442
72,237
1,533,432
2,282,294
59,095
187,500

^Capital and Surplus combined.
**Loans and Discounts and Bonds and Securities combined.
***Capital and Surplus and Profits combined.

shall Field. Soon thereafter he was trans
ferred to Manchester, England, where fo r
47 years he represented Marshall Field and
Company and it was there in 1875 that his
son, STAN LE Y FIELD , was born.
A R R E N C. GARST, formerly man
ager o f the Want Ad department o f
the Register and Tribune, has left that
organization to become deputy manager o f
the American Trust & Savings Bank o f
Cedar Rapids, which is now operating
under the new Bank Stabilization Act.
ERNEST R. MOORE is president o f the
bank.

became speculators, traders and merchants,
thousands embarked in every possible and
conceivable scheme. They produced noth
ing-, they simply preyed upon labor, and
each dealt with imaginery values. These
men must go back; they must become pro
ducers, and every producer is a paying
consumer.”

ated; it’s not the center o f the universe
after all, it’s only a side show.”
This is the first intelligent remark I have
heard about bridge fo r a long time. I like
bridge fo r relaxation but some people Avant
to make it their sole objective in life— at
least that is the Avay it seems to me.

RANCIS H. SISSON, president of the
American Bankers Association and
ERC Y W . H ALL, former secretary of
the Iowa Bankers Association and
vice president o f the Guaranty Trust Com
pany o f NeAV York, believes that, “ Busi
later representative o f the Chase National
Bank, is recovering in Los Angeles from
ness confidence and ambition and the spirit
an automobile accident which resulted in
o f enterprise will not revive so long as
there hangs over the nation the question of
his being hit by a motor car while crossing
the street. He was unconscious from 12 how great a portion of the legitimate earn
to 15 hours in two hospitals before he knew
ings o f industrial and commercial effort
OLONEL ROBERT G. INGERSOLL,
Avill be expropriated to support govern
what had happened.
in a speech made in Boston October
22, 1878, could just as well have made a He is recovering nicely, however, and ment activities that do not add to either the
expects to be back to his office in a few
security o f business or the real Avelfare of
similar speech at any time in the last two
weeks.
the public.”
or three months because here is what he
said :
LY CULBERTSON has shocked many
RED J. PARO, vice president of the
“ During the war, during the inflation—
Mercantile Commerce Bank & Trust
o f his admirers and bridge enthusiasts
that is to say, during the years that we
by saying, “ The Culbertson system is exCompany of St. Louis, is advocating the
were going into debt— fortunes were made
aggerated, the Sims system is exaggerated, appointment o f F R A N K W . SIMMONDS,
so easily that the people left the farm,
the Arhole damn bridge game is exagger
(Turn to page 38, Please)
crowded to the towns and cities. Thousands

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Federal Reserve Bank of St. Louis

N orthw estern Banker

Februarij 1933

"The Banker faces problems not only in the internal management of his
bank, but also in the external conditions surrounding his bank. He must
work just as hard for sound public policies as he works for sound banking
policies. W ith the conditions as they are today the two are inseparable/1

How the Investment Restrictions
in the Glass Bill W ill
A ffe c t Your Bank
I

N AN address at the annual eastern
regional savings conference held in
New York under the auspices o f the
savings division, American Bankers Asso
ciation, Francis H. Sisson, president o f
the association and vice president, Guar
anty Trust Company, New York, said in
p a rt:
“ No forward-looking banker could op
pose banking reforms that would assure
better credit accommodations to sound
business enterprises, and, at the same
time, bring a greater measure o f safety
to the funds that have been entrusted to
his institution by depositors.
“ While proposed legislation now be
fore Congress provides fo r some con
structive regulations, it also includes a
measure that is both novel and highly
experimental. Even many well-informed
bankers fail to realize that the bill re
ferred to now pending in Congress, be
sides abolishing security affiliates o f Fed
eral Reserve members within live years,
would immediately prohibit these banks,
both state and national, from underwrit
ing and purchasing securities for resale
through their bond departments. I f the
bill should pass, no longer could any commerial member bank participate in any
bond issue, except certain government ob
ligations, unless these securities were be
ing purchased for its own account. Amer
ican bankers and business men are now
faced with the question: Are long-term
and short-term financing, as inseparable
as they have been throughout banking
history, to be arbitrarily deprived o f their
natural relationship by legislation; and,
if so, is there any real advantage to the
public in taking this branch o f invest
ment away from the economically and
traditionally best fitted to conduct it and
turning it over to independent and un
regulated houses'?
The Future of Securities

“ Among the many weighty problems
that face our savings banks at this time,
there can be none more important than
the future o f the high-grade security
market and the quality o f the securities
going into savings bank portfolios. The
effect o f the proposed banking reform is
N orthw estern B anker

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Federal Reserve Bank of St. Louis

F ebruary 1933

to renounce investment banking, rather
than regulate it. It would destroy a sub
stantial part o f our bond-distributing ma
chinery, thus diminishing probably the
marketability o f the securities held by
savings banks. Can anyone expect that
a step o f this kind will improve the qual
ity o f our long-term investments and
safeguard the investors’ interests? A p
parently the intent is to make an excep
tion in the ease o f municipal, state and
United States government obligations,
although the bill on this point is not per
fectly clear. I f so, we have a further
anomaly that our great system o f com
mercial banks will be allowed to compete
fo r these classes o f bonds and encourage
the creation o f public debt in which poli
ticians are interested; whereas, they will

" W E ARE justified in c o n
fid e n ce

th a t

the

price

structure in the b ond m a r
ket is on a sound fo u n d a
tion

and

th a t

im p ro v e m e n t

continued

can

t ic ip a te d ."
not be able to interest themselves in the
highest grade railroad or public utility
issues that savings banks regularly in
clude in their portfolio.
A Dangerous Step
11 The serving o f the long-term capital
market is by its very nature intimately
related with the short-term capital mar
ket and it seems to me highly unwise and
dangerous to try to divorce them by leg
islative fiat. Surely we should be able
to impose a code o f regulations on this
field o f banking in the same way as with
short-term banking. W e should attempt
to cure the abuses that have existed
rather than suppress a function obvi

ously legitimate in itself. For my part,
I should like to see the savings banks
and insurance companies, which are so
vitally interested in the soundness o f the
long-term capital market, make them
selves heard in opposition to these pro
visions o f the banking bill before Con
gress. Too many people today feel that
the organization o f the long-term capital
market is o f interest only to a few bank
ers. As you well know, every depositor
in a savings bank and every holder or
beneficiary o f an insurance policy has,
whether he knows it or not, direct, live
interest in the quality o f our high-grade
securities. The provisions o f the pending
banking bill, as they relate to these se
curities, far from safeguarding the peo
p le ’s interests, in my opinion, expose
them to greater dangers.
1‘ There is no large banking system in
the world in which the natural and spon
taneous relationship between commercial
banking and the long-term capital market
does not exist, fo r the complex and intri
cate system directing the flow o f capital
funds makes it difficult to segregate e f
fectively one from the other.
F re
quently, commercial banks are called
upon to accommodate industries, as well
as governments, by investing some o f
their deposits in short-term notes that
are to be redeemed from the proceeds o f
subsequent bond issues.
When these
bonds are ultimately marketed, banks
often advance funds to the individual
purchasers and accept the bonds as col
lateral. W hat possibly could be more
natural, logical, and inevitable than for
these same banks to participate in the
creation, underwriting, and distribution
o f these securities. The high-powered
and complex economic structure o f this
nation is largely kept in balance by the
free, uninterrupted interchange o f long
and short-term capital.
“ Every banker is fu lly aware o f the
abuses in investment banking that were
fostered during the presperous decade
ending in 1930, but these abuses were

19
typical o f the entire economic organism
and were in no manner peculiar to bank
ing alone. The post-war boom and accom
panying business expansion required
financing; and the public exhibited an
almost insatiable desire to purchase the
long-term obligations o f the ‘ new eco
nomic era,’ as a large part o f the public
believed it to be. Elaborate studies re
cently tend to show that the market
depreciation and defaults affecting bonds
that were originated by American banks
and their affiliates were less than the
average.
“ V ery harsh criticism has come from
some quarters to the effect that it has
been the practice o f trust companies with
security affiliates to facilitate the dis
posal o f the affiliates’ securities by
distributing them among the trusts ad
ministered by these banks. This charge
is untrue and grossly unjust. Under no
conditions does a properly managed trust
company resort to such violation o f faith.
It is also frequently stated that the main
tenance o f an affiliate greatly weakens the
stability and the soundness o f the parent
company, but there are no available rec
ords indicating that any affiliate o f im
portance has caused the failure o f its
bank.
Proper Regulation
“ There are exceptional instances where
banks have loaned injudiciously to se
curity affiliates, where affiliates have
indulged unwisely in stock market trans
actions, or where operations in the stock
o f the parent company have been con
ducted; but these few cases hardly con
stitute sufficient reason to condemn, and
attempt to eliminate, the entire field o f
investment banking. Affiliates have been
operating largely without any govern
ment supervision whatever; and the fact
that a few o f them may have entered
into such unethical practices as the fore
going suggests, not that the entire system
o f investment banking is economically
unsound, but that the more reputable in
stitutions may better, and with more
public confidence, carry on this legitimate
economic function under a network o f
government regulations that would pro
hibit careless or unscrupulous activities
by a few individuals.
“ Such regulation could provide for
periodic reports and examinations and
for limitations in the amount o f the par
ent bank’ s loans to, and investment in,
its security affiliate. It seems only reas
onable that, inasmuch as investment
banking has grown up in response to the
needs o f our economic, industrial, and
social structure, it would be folly indeed
to renounce it by sweeping, depressioninspired, reform legislation. I f invest
ment banking in some o f its phases has
not been infallible in the past, it should
be regulated; but nothing is to be gained
by wrecking so vital a part o f our eco
nomic machinery. ’ ’

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Federal Reserve Bank of St. Louis

Mr. Sisson also declared that the gen
eral advance o f bond prices o f recent
months, amounting to a present net rise
o f more than 15 per cent, since June, has
increased the value o f listed issues on the
New York Stock Exchange by between
five and six billion dollars. Such a move
ment would restore some $3,000,000,000
to the values o f securities in the invest
ment portfolios o f our banks as a whole.
It has been a powerful influence in
strengthening the position o f many indi
vidual banks and in buttressing the bank
ing structure as a whole.
“ Events o f more recent weeks have
tended to consolidate our confidence in
the position o f the bond market,” Mr.
Sisson continued, “ and in the financial
situation o f which it is a major part.
Largely under the pressure o f bankers,
the municipalities are taking steps to
rebuild their credit standing. The rail
roads, also large borrowers, have been
doing better also in the matters o f traffic
and earnings. Foreign government bonds
have reflected sounder political policies
in that field. As a result we have seen
recently a strong forward movement in
government, municipal and corporate
issues, both foreign and domestic. I be
lieve we are justified in confidence that
the price structure in the bond market is
on a sound foundation and that continued
improvement can be anticipated.

“ The year-end statements of condition
o f banks showed that the banks gener
ally, particularly the larger institutions in
the financial centers that are the essential
anchorages o f the banking structure, are
in an impregnably strong, liquid posi
tion, while throughout the country it was
evident that the banks have made material
progress in strengthening their positions.
Whatever troubles may still lie ahead for
individual banks in some places in connec
tion with the further economic readjust
ments that yet remain to be completed, I
can say without reservation that the main
banking structure as a whole is sound and
that it is deserving of full public confi
dence.
Loans Repaid
“ Another significant phase o f the bank
ing situation is pictured in the substantial
volume o f loans that have been already
repaid by banks which borrowed from the
Reconstruction Finance Corporation. The
last report o f the corporation showed that
while banks had borrowed about $851,000,000 from it during the first eleven months
o f its operations, they had repaid no less
than $256,000,000, or 30 per cent. This
is unquestionably a very good showing in
the face o f the continued severity o f the
depression. It shows a distinct strength
ening in that portion o f the banking
(Turn to page 34, Please)

Named Superintendent of Banking
for Iowa
(See Cover P h o to )

HIS A P P O IN T M E N T confirmed by the Iowa Senate
January 30, on July first D. W . Bates, of A lb ia , w ill become
Superintendent of Banking.
M r. Bates, who is president of the Home Savings Bank
of Des Moines, and maintains a law office in A lb ia , has
already joined the forces o f the b anking department to be
in charge of the new 7/bank stabilization77 law, recently
passed by the Iowa legislature.
M r. Bates practiced law in A lb ia for 28 years, was
M o nro e county attorney for six years and clerk o f the
court for four years. He was president of the A lb ia State
Bank before coming to Des M oines in 1929.
During the five years which M r. Bates has been president
of the H ome Savings Bank in Des M oines, he has main
tained his legal residence and law office in A lb ia .
N orthw estern Banker

F ebru a ry 1933

F. Robertson Jones, General Manager of the Association
of Casualty and Surety Executives, tells of the crushing tax
burden which has been saddled upon the American people
and as this burden relates to insurance. He calls it

T A X IN G
T IS a tax axiom that every person
should contribute to the support o f
government in proportion to his ability;
and that his ability can usually be meas
ured by the true value o f his property,
the size of his net income or by other
similar means.
Stated concretely, the
owner of a $50,000 building should pay
more than the owner o f a $25,000 build
ing, and the $10,000 a year man should
pay more than the $5,000 a year man.
This axiom at times may be honored more
in its breach than in its observance; but
it is nevertheless regarded as a general
principle of equitable taxation. It is the
bone and sinew o f the American taxing
system today. We all have been brought
up to believe that, by and large, this is
the fairest rule fo r the apportionment of
the cost o f government.

Double-Headed Rule
Taxes imposed under this rough and
ready rule are in effect taxes on good fo r
tune. That citizen who, through ability,
foresight or just plain good luck, accumu
lates the largest amount of worldly goods
pays the heaviest tax and so on down the
line. Although it is difficult, o f course, to
make any hard and fast rule which will
do justice to everyone; yet, if honestly
administered, this system of testing ability
to pay by size of income or value o f prop
erty, or both, is probably as good a test
as we have been able to devise, and we
find general acceptance o f the principle
that good fortune is a proper subject for
taxation. The converse of this principle
is that misfortune is not a proper subject
fo r taxation. In any event, the logic of
this double-headed rule, no matter how
stated, is the basis upon which our taxing
system lias been founded, despite wide
stuffings from it on occasions.
Political opportunists, however, find
that this simple kind of justice in taxation
does not suit their purpose or needs. They
incline toward Colbert’s theory that taxa
tion is the art o f plucking the goose so
as to obtain the greatest amount of feath
ers with the least amount o f squawking;
and they act accordingly. It is to one of
the most vicious of these opportunist meth
ods o f taxation that I intend to direct your
particular attention; and that is the tax
ing of misfortune, a practice which has
developed rapidly and spread widely in
this country, because those who pay these
N orthw estern Banker

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Federal Reserve Bank of St. Louis

F ebru a ry 1933

M IS FO R TU N E
M r. Jones says that “ A tax on insurance is a tax on one of the
greatest of socia! virtues — thrift, by which the assured provides
against future want attendant upon calamity and catastrophe/7

taxes really don’t know' that they do so.
I refer to the taxes on the insurance busi
ness. F or insurance is protection against
misfortune; and taxing protection against
misfortune is the same as taxing misfor
tune. That is exactly what taxation of
most forms of insurance clearly is, whether
life, casualty, surety, fire or marine in
surance.
$7 Out of E very $100
How many o f you realize that about
seven cents out of every dollar that you
pay fo r insurance goes to government in
taxes? That is the sum exacted from
you because you have the prudence and
foresight, through insurance, to protect
yourself, your family, your property and
often the public itself against the mis
fortune that may befall you. The insur
ance company, o f course, collects the tax
from you policyholders and pays it to the
tax collectors. The tax is included in the
price paid fo r insurance— that is, in the
premium paid fo r your insurance policy.
In my opinion, the amount of this unjus
tified tax ought to be printed in large type
on the bill fo r every insurance policy.
Then every purchaser o f insurance would
know exactly how much he is being
mulcted fo r the privilege o f protecting
himself and his family against possible
misfortune. I f this were done, policy
holders would know that, in the aggregate,
$7 out o f every $100 they paid fo r insur
ance went to our tax spenders. And this
knowledge might stir them to make vigor
ous protest.
Misunderstood
I often wonder why the simple fact
about insurance taxation that I have just
stated is not generally understood by pol
icyholders ; and why a sort of intellectual
vertigo seizes them Avhenever the subject
o f who pays the insurance tax is broached.
People will argue that the tax levied by
their state is taken not from them, but, for
the most part, from insurance corpora
tions o f other states— citizens of Texas, fo r
illustration, will insist that the tax their
state levies on insurance is derived largely
from companies chartered elsewhere; and

that consequently the people of Texas are
to that extent relieved from the burden of
the insurance tax. Nothing could be more
illogical than that kind of argument. Other
people will say that to tax insurance is
as legitimate as to tax any other industry.
But an insurance company, no matter
where chartered, o f its very nature is only
a “ handler” o f the premiums it collects
from policyholders. It does not create
values in the same sense that a shoe fac
tory does. It fabricates no raw materials.
It distributes no commodities. It merely
collects premiums from the money to pay
a large percentage o f them out again to
those who are unfortunate enough to meet
with misfortune, or to their beneficiaries.
It is the agency through which the social
and economic effects o f a large variety of
misfortunes are mitigated and relieved.
To burden heavily this relief o f misfor
tune is an unconscionable, arbitrary and
anti-social exercise o f the taxing power.
Gouged Twice
Please do not misunderstand me. I am
not asserting that insurance should not be
taxed at all. It should be taxed, of course,
but only to the extent o f providing funds
fo r its proper and economical supervision.
It is obvious that the state should not it
self be put to the expense o f seeing that
insurance policyholders get a square deal
from the companies and that the compa
nies themselves are solvent and continue
to be solvent. But w7hen, as in 1930, the
states tax insurance companies $95,500,000
over and above the $4,500,000 needed to
defray the cost o f supervision, it is about
time to call a halt. It is outrageous that
insurance policyholders should be gouged
twice fo r the general revenue fund, once
as general taxpayers and a second time as
the owners of insurance policies.
A tax on insurance is a tax on one of
the greatest o f social virtues— thrift, by
which the assured provides against future
want attendant upon calamity and catas
trophe. Such taxation of insurance, as I
have already emphasized, is ultimately the
taxation o f misfortune— manifestly a dan
gerous and highly anti-social abuse of the
taxing power. In other words, human

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Federal Reserve Bank of St. Louis

C it y N ational B a n k
AND T R U S T C O M P A N Y of Chicago
2 0 0 South L a S a lle
S T A T E M E N T O F C O N D IT IO N D E C E M IIE II 3 1 , 1 0 3 2

B O A R D OF

KESO CKCES

D IR E C T O R S

Cash and Due from Banks................$ 63,118,487.42
U. S. Government Securities...........

6,383,897.02

Charles G. Dawes, Chairman
D onald S. Boynton
Pickands, Mather & Company
P hilip R. Clarke,
President

State, Municipal and other
Securities....................................

1,271,659.38

Loans and Discounts.........................

14,475,505.24

Federal Reserve Bank Stock...........

150,000.00

H enry M. D awes
President, The Pure Oil Co.
C harles S. D ewey
Vice President, ColgatePalmolive-Peet Co.
G eorge B. D ryden
President, Dryden Rubber Co.
G eorge F. Getz
Chairman of the Board, Globe Coal Co.

Customers’ Liability on Letters
o f Credit and Acceptances. . . .

174,794.27

J ohn G oodridge
Willing Estate

Other Resources..................................

129,565.82

C harles B. G oodspeed
Manufacturer

$ 85,703,909.15

H arry B. H urd
Pam & Hurd
James S. K emper
President, Lumbermens Mutual Casualty Co.
F rank K nox
Publisher, Chicago Daily News

L IA B IL IT IE S
Capital ............................................... $

4,000,000.00

T heodore W. R obinson
Manufacturer
Elisha W alker
Capitalist

S u rp lu s................................................

1,000,000.00

Reserved for Taxes, Interest, etc.. .

84,937.85

Letters o f Credit and Acceptances
Outstanding..................................

176,435.52

D eposits...............................................

R awleigh W arner
Vice President & Treasurer, The Pure Oil Co.
R obert E. W ood
President, Sears, Roebuck & Co.

80,442,535.78
$ 85,703,909.15

DEPOSITS AS OF OCTOBER 6, 1932, (opening o f business) $73,364,000
DEPOSITS AS OF DECEMBER 31, 1932

.............................$80,442,000

N orthw estern Banker

F ebru a ry 1933

misfortune and sorrow are made to pay
tribute to the state treasury. As a state
insurance commissioner long ago aptly
said: “ It is true that the tax-gatherer is
not at the bedside o f the sick or injured,
or o f the dying, demanding for the state
his calamity tax. It is collected in advance
from the premiums.”
In this connection I desire to commend
highly the majority o f our state insurance
commissioners who are opposed to the ex
cessive and unfair taxation o f insurance
now in vogue in this country. They have
done much to point the way to reform
through their organization, the National
Convention o f Insurance Commissioners.
Their commendable position, I must add,
is well fortified by sound economic
thought. John Stuart Mill called taxa
tion o f insurance “ a direct discouragement
o f prudence and f o r e t h o u g h t a n d Mc
Cullough, expressing himself similarly,
added that it may well be doubted whether
insurance ought to be “ charged with any
duty, however slight.” Strange as it may
seem, however, the commissioners have
had little help from the great mass o f in
surance policyholders who pay the tax,
chiefly because these policyholders do not
realize that the money actually comes out
o f their own pocketbooks and that because
they buy insurance they are taxed twice
for state revenue purposes.

F or

resistance

shrinkage

value—
For basic security T O D A Y —
For net yield, year in and year out—

Perhaps, however, the immediate reason
that the taxation o f insurance is so popu
lar with legislators, is that they And it an
easy prey; those who pay the tax, the
policyholders, do not protest. Further
more, the companies must o f necessity
have ready money and consequently they
are not in a position to avoid the tax.
Premium Tax

T h e answer to these questions

y ou r best guide to a 1933 investm ent
policy.

Carleton D. Beh Co.
IN V E S T M E N T SE C U R ITIE S
Twelfth Floor, Des Moines Building
Des Moines
Phone 4-8156

N orthw estern Banker

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Federal Reserve Bank of St. Louis

F ebruary 193H

So far, I have had in mind chiefly a spe
cial state tax on insurance— the so-called
premium tax, which ranges in the various
states from one to three per cent o f the
price paid fo r insurance protection. This
is the most obnoxious of all of the taxes
levied on insurance companies ; but there
are a multitude of other exactions which
bring the total tax outlay of the compa
nies up to about seven cents out o f every
dollar they receive from policyholders.
These include federal and state income
taxes, state and local property taxes and
numerous additional levies, licenses, fees
and what not. Verily, “ 57 varieties,”
which the policyholders ultimately pay.
As a matter of fact, an insurance com
pany never flies a scrap of paper, obtains
a statement o f any kind nor exercises any
of its legitimate functions without having
to pay a fee of some kind. In some in
stances, such payments have been known
to aggregate more than the company’s
receipts. Legislation has even been en
acted taxing plate glass and burglary and
theft insurance premiums for the support
of policemen’s pension funds on the
(Turn to page 32, Please)

Bonds and Investments

The Handwriting on the
Investment W all
The O u tlo o k for M unicipal and State Bonds
O THE W orld W ar is added another
responsibility! The current evolu
tion o f municipal indebtedness had
its inception subsequent to that era. W ith
production at the highest level in history,
demand insatiable, inflation at every
turn, values artificially doubled and treb
led, and in many instances quadrupled,
in the short period o f five years. Pros
perity by the rank and file was taken to
be perennial; ‘ ‘ easy come— easy go, ’ ’ was
the vogue o f the day, according to Gertler, Devlet & Company, municipal bond
brokers, in their year book, “ Observa
tions on State and Municipal Bonds 1933
E dition.”
Governmental budgets, they
say, mounted as appropriations were in
creased ; cities vied with one another in
an effort to be more progressive, to an
extent far beyond reason. Enormous
amounts o f debt obligations were floated
year after year with litter lack o f finan
cial or economic perspective.
Overlapping districts with the power
o f taxation and debt creation such as
school, road, irrigation and special have
come into existence; obligations o f this
character are o f enormous amounts and
tend to befog values o f municipalities.
Cook county, Illinois; states o f New
York, Michigan and Illinois are striking
examples o f overlapping districts and
account for over 35,000 such jurisdictions
out o f an estimated total o f 500,000 for
the country.
Debts have been created and spread
over periods from one to fifty years with
out consideration o f life or usefulness o f
improvement. Prom an estimated indebt
edness for Federal, state and local o f
three billions in 1902, four billion eight
hundred fifty million in 1912, the total
has mounted to the gigantic sum o f ap
proximately thirty-seven billions cur
rently; or a percentage increase o f 1133
per cent from 1903 to 1932. During the
same period expenditures o f Federal,
state and local governments rose from
one billion five hundred seventeen million
to approximately fifteen billions, an in
crease o f 860 per cent.
To make this huge sum more under
standable, one dollar out o f every three
o f the total income o f our entire national

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Federal Reserve Bank of St. Louis

During 1933
population is consumed in the support of
our g’overnments and their sub-divisions.
This orgy o f spending by municipalities
Avith feAV exceptions has been very little
curtailed up to the present, even though
the entire country has passed from a
period o f unprecedented inflation to one
o f dire depression during the past three
years. The same voters who authorized
unjustified bond issues are noAV demand
ing retrenchment in municipal and state
expenditures, clamoring for reduction in
taxes both personal and real.

The most serious aspect o f the present
situation is that taxation from practi
cally all available sources hardly balances
budgets and tax collections are in con
tinually decreasing ratios. Under exist
ing conditions inducements should be o f
fered fo r the prompt payment o f both
current and back taxes; tax sales poli
cies made as liberal as possible.
Refunding operations are becoming
more and more difficult; bond holders de
manding their interest and principal
Avhen due.
During the past year reductions in budg
ets have o f necessity been generally
prevalent, but by no means have they
been cut sufficiently nor nearly as much
as is possible; curtailments will have to
be made in every branch o f government;
this requires immediate, honest, earnest
and scientific study and will be forced on
politicians loth to give up their sinecures,
in order that municipal credits be main
tained or resotred.
Retrenchments o f at least 25 per cent
should be made by state and local gov
ernments ; expansion programs should be
drastically reduced; planned public works
that are not absolutely necessary should
be deferred; employment o f men in dis
tress should be on projects beneficial or
o f a self-liquidating nature. Large cur
tailments in operating costs could be e f
fected through consolidations o f bureaus,
overlapping districts and departments
where duplication o f effort are most pro
nounced.
The foregoing while prevalent is not

synonymous with all governments, may
having seen ‘ ‘ the handwriting on the
w all” and have “ placed their house in
order. ’ ’ Their budgets are balanced, their
tax collections are at high rates, their tax
rates are being gradually lowered, their
assessed valuations are fair, accordingly
their bonds enjoy high credit rating.

G u a ra n ty Trust
Survey Says-—
“ Panaceas and quack remedies of all
sorts are being offered on every hand,”
The Survey says. “ The most oft re
curring suggestion is that inflation o f some
sort must be resorted to to bring revival.
F or this there are many different sugges
tions, equally unsound and unworkable,
but the human inclination to turn to some
false remedy for treatment of its ills
reaches its climax after all long periods of
depression, and apparently history is re
peating itself in that particular at present.
In the minds o f many students the parade
o f panaceas may well mark the climax of
the depression.
“ Many suggestions for the creation of
more credit and more currency are being
offered Avithout any apparent study or
grasp of the situation as these suggestions
might apply to it. There is more credit
available today than ever before in our
history and the outstanding currency is at
its high point, nearly a billion dollars
more than at the top o f our boom period in
1929. The obvious deduction is that Avhat
we need is not more credit or more cur
rency, but more confidence in the use of
the credit and currency already available.
So the crux o f the situation is the restora
tion o f confidence and the crucial question
i s : how may that be stimulated ?
“ Again the ansAver seems someAidiat ob
vious.
If Congress Avould concern itself
less Avith quack remedies and more AA'ith
fundamental correctives, confidence Avould
soon be revived. Established government
credit through a balanced budget and a
sound basis of taxes Avould mark the begin
ning of a return o f confidence. Business
like settlement o f the debt problem, and
proper adjustment o f tariffs, are among
the positive suggestions.”

N orthw estern Banker

F ebruary 1933

'24

N ew C hairm an
Chase Board
At a meeting o f the directors of the
Chase National Bank, Winthrop W.
Aldrich was elected chairman of the gov
erning board to succeed Albert H. W iggin, who recently announced his decision
to retire as a Chase executive after 29
years of association with the bank. Mr.
W iggin continues as a member o f the
board of directors and the executive com
mittee.
Mr. Aldrich was re-elected as president
o f the bank, a post which he has held since

the Chase-Equitable merger in June, 1930.
Charles S. McCain was re-elected by
the directors as chairman o f the board of
directors, and John McHugh as chairman
o f the executive committee o f the bank.

Luther H ill
W ith R. F. C .
Luther L. Hill, president o f McMurray
Hill & Company, Des Moines investment
bankers, has been appointed to the staff of
the Reconstruction Finance Corporation
in the self-liquidating division.
Mr. Hill has obtained a leave of ab

sence from his company in Des Moines,
and has taken up his new duties in Wash
ington. He states that he will retain his
full interest in McMurray Hill & Com
pany and its affiliated companies, and
that his work in Washington will be of
temporary nature, at the conclusion of
which he will return to his present posi
tion as president of McMurray Hill &
Company.
The self-liquidating division of the Re
construction Finance Corporation con
ducts the investment banking business of
the corporation, underwriting municipal,
public utility and industrial issues of selfliquidating projects. The corporation ex
pects, with the return of more normal in
vestment market conditions, to resell a
large portion o f its underwritings to in
vestment bankers, dealers, etc.
This division o f the corporation has
thus far underwritten and purchased se
curities to the amount of $148,000,000.
At the present time there are applications
for 149 projects, involving aggregate loans
in excess o f $400,000,000.

D ire c to r o f
B a n co rp o ra tio n
George N. Ayres, president o f the Cen
tral Life Assurance Society, Des Moines,
and a director o f the Iowa-Des Moines
National Bank & Trust Company, has re
cently been elected a director of the North
west Bancorporation, with which the Des

S t o c k Ya r d s B a n k
& Tr

u st

o m pan y

C H IC A G O

A Union of

The Stock Yards National Bank
and

The Stock Yards Trust & Savings Bank

N orthw estern B anker

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Federal Reserve Bank of St. Louis

F ebruary 1933

G E O R G E N. A Y R E S

Moines institution is affiliated. The North
west Bancorporation, whose headquarters
are in Minneapolis, now has one hundred
and twenty-five banks as members o f its
group.
Mr. Ayres lias long been connected with
the business o f banking, having served
the Iowa-Des Moines National Bank &
Trust Company as a director for many
years.

Prom otions a t
The N o rth e rn Trust
Several promotions were made by the
directors o f the Northern Trust Company,
Chicago, following the annual meeting of
stockholders. No changes were made at
the stockholders’ meeting, all sitting di
rectors being re-elected.
Arlen J. Wilson and Keith J. Sheckler
were made vice presidents. Both have
been second vice presidents.
Solomon
Byron Smith and Harry M. Gustafson
were promoted to second vice presidents
from assistant cashiers. Reginald G.
Olderr was made assistant cashier and
manager of the savings department. He
formerly held the title o f assistant cashier.
Additional appointments also were
made in other departments.
John M.
Easton was made manager of advertising
and publicity. Harry Hunsberger, Lyell
H. Ritchie and Theodore Lely were pro
moted to assistant cashiers.
John R.
Bjorkman was named assistant cashier
and assistant manager o f the savings de
partment; Maurice E. Graves, assistant
controller, and Irving L. Phillips, assist
ant manager o f the bond department.

S tockyards
Banks M e rg e
Union of the Stockyards National Bank
o f Chicago and the Stockyards Trust &
Savings Bank has been ratified by the
stockholders. The new bank is known as
the Stockyards Bank & Trust Company.
Capital, surplus and reserves total $2,000,000, and deposits amount to $15,000,000. Book values have been revised down
ward to conform to current value. The
bank is the largest outside of the loop.
D.
H. Reimers is president o f the com
bined banks. The directors are P. H.
Prince, Arthur G. Leonard, O. T. Henkle,
D. H. Reimers, J. A. McDonough, Thomas
E. Wilson, George F. Bridge, G. F. Emery,
Clyde H. Schryver and Harry I. Tiffany.

D ire c to r
First N a tio n a l
C. J. Whipple, president o f Hibbard,
Spencer, Bartlett & Company, was elected
a director o f the First National Bank of
Chicago at the annual meeting o f stock
holders held last month. Other members
of the board were re-elected, with the ex
ception of Richmond Dean, Avhose retire
ment is due to the relinquishing o f busi
ness activities, and Clive Runnells, who
does not now live in Chicago. The board
o f directors of the First National Bank
forms the board of directors and advisory
committee o f the First Union Trust &
Savings Bank.
A t the meeting o f the board of direc
tors, following the stockholders’ session,
Guy C. Kiddoo was promoted from as
sistant vice president to vice president o f
the First National Bank; Horace O. Wet
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Federal Reserve Bank of St. Louis

more and Herbert V. Prochnow were ap
pointed assistant cashiers. In the First
Union Trust & Savings Bank, Lewis
Miller was appointed assistant cashier.

C hase O ffic e rs
Form N ew C lu b
A dinner was held at the W aldorfAstoria recently, attended by more than
four hundred officers o f the Chase National
Bank and its affiliates.
The occasion
marked the inauguration of a. newly or
ganized club of the officers o f the Chase
National Bank, Chase Securities Corpo
ration, Chase Harris Forbes Corporation,
and American Express Company. Joseph

C. Rovensky, vice president o f the bank,
presided.
The guests o f honor were: Albert H.
W iggin, retiring chairman o f the govern
ing board o f the bank; Winthrop W.
Aldrich, who was elected recently as his
successor; C. S. McCain, chairman of
the board o f directors, and John McHugh,
chairman o f the executive committee.
Mr. Rovensky paid a warm tribute to
Mr. W iggin and Mr. Aldrich. He said
o f Mr. W iggin that his retirement from
the chairmanship of the Chase was not
a retirement from the life of the bank
or o f its officers.
“ In relieving himself of his most ardu
ous duties, Mr. W iggin is to have a well

Iowa Municipal

BONDS
Through our state-wide representation we offer
high grade Iowa municipals for Investment.

C urrent Offerings
Issu e

O pt’l

DES MOINES, School................. •-4 ^ %
DES MOINES, Funding.............. •■4M%
Ot t u m w a , imp. Fund............. •■4 %
FAYETTE CO., Prim. R oad___ ..5 %
WINNESHIEK CO., Prim. Road ..5 %
LUCAS CO., Funding.................. . . m %
DES MOINES, Airport............... ■ A % %
WELLSBURG, Water Works.. . . ■ A H %
LISBON, Imp. Fund.................... ■ A H %
WAUKON, Refunding................. ■ A V 2%
SHELDAHL, S ch ool................... ■ A % %
NEW LONDON, Funding........... ■ A % %
MARQUETTE, Grad. Fund....... ..5 %
-®---CRESTON, St. Imp...................... ..5 %
DES MOINES, St. Imp............... ..5 %

Due

5-1-35
5-1-34

9-1-28

LAKE MILLS, Municipal
Electric Light Plant Pledge Orders, 6s

P rice to
Yield

8-1-44
6-1-45
5-1-34
1940-44
5-1-39
1937-9
1935-7
11-1-45
1944-48
9-1-36
5-1-40
1934-7
5-1-45

4.00%
4.00%
4.10%
4.10%
4.10%
4.25%
4.25%
4.50%
4.50%
4.50%
4.75%
4.75%
5.00%

5-1-35
1933-41

5.00%
5.25%

1940-1

6.00%

Concessions to banks and dealers on request

J A C K L E Y .W lE D M A N
CEDAR RAPIDS
CHARITON

6? C O .

MASON CITY
OMAHA

D E S M O IN E S

P hone 3-5181

N orthw estern Banker

F ebruary 1933

26
earned rest,” said Mr. Rovensky. “ How
ever, we say to him only ‘auf wiedersehen;’
he is not going to leave ns, because we
have partaken so much o f him.”
Mr. Aldrich was acclaimed as their new
chief by those in attendance at the dinner,
and in the name of the officers o f each

organization comprising the Chase fam
ily, the chairman pledged their support
and allegiance to him.
Reeve Schley, vice president o f the
bank, presented to Mr. W iggin, as a token
from officers and employees, an old Eng
lish silver table service. The fund for

the purchase o f this gift Avas begun by a
group o f clerks, and contributions were
made by every office boy, teller, clerk and
officer o f the bank.
Elected as officers of the neAv club for
its first year w ere: Joseph C. Rovensky,
president; R. R. Hunter, vice president;
Albert J. Egger, secretary, and John J.
Lendrum, treasurer.

O U R O F F E R I N G LI ST W I L L BE M A I L E D R E G U L A R L Y U P O N R E Q U E S T

A p p o in te d in
C e d a r Rapids

GMAC

N otes

are a standard medium for short term investment.
Based on highly liquid assets, they provide a
sound instrument for the temporary employment

The appointment o f Mrs. Edgar B.
Tapper of Cedar Rapids, as representa
tive o f Jackley-Wiedman & Co., in Cedar
Rapids and vicinity, effective January 1st,
has been announced by Winfield C. Jackley, president, of Des Moines.
Mrs. Tapper, who lives at 2164 Blake
Boulevard, has been a resident of Cedar
Rapids for nearly fifteen years. Through

of surplus funds. G M A C obligations are in couru
try'wide demand for the security portfolios of
individuals, institutions and thousands of banks.
available in convenient maturities and
denominations at current discount rates

G eneral M otors
A cceptance C orporation
OFFICES

Executive Office "

PRINCIPAL

BROADWAY at 5 7 TH STREET

CAPI TAL A ND S UR P LU S

CITIES

Efew Y or\ City

S E V E N T Y M I L L I O N DOLL A RS

M RS.

BASE YOUR JUDGMENT
on

INVESTMENT FACTS
W e furnish you with a composite of all available investment facts
that pertain to your bond list and send you an analysis of each
security.
Constantly, thereafter, your list is checked against all
information as it is issued. The results come to your attention auto
matically. You have an up-to-date file on every issue you own.
The cost is so reasonable, you cannot risk doing business without it.

McFay den’s Investors Service

N orthw estern Banker

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Federal Reserve Bank of St. Louis

B oard o f Trade B u ildin g
C H IC A G O

F ebruary 1933

EDGAR

B. T A P P E R

connections with the Denecke company
and Penick & Ford, she has been identi
fied with business in Cedar Rapids since
1925.
The opening o f a Cedar Rapids office is
the fourth office of the Des Moines invest
ment house to be established outside of
Des Moines. Offices also are maintained
at Chariton, Mason City and Omaha.

H om e Loan Bank
Policy A p p ro v e d
Approval fo r the conservative policy
of the Federal Home Loan Bank opera
tions took on nation-wide proportions as
the comments o f building and loan associa
tion managers from many states were
made public by Ward B. Whitlock, presi
dent of the United States Building &
Loan League, the national organization of
the associations. Particular satisfaction
is voiced over the fact that present home

27
mortgage problems are to be solved
through a system supported by private
capital rather than through a billion-dol
lar salvage sum from the government, the
building and loan leader said.
The granting thus far o f credit lines
to 250 home financing institutions by the
Federal Home Loan Bank board has been
done on the only basis sound enough to
make possible the floatation o f bonds, ac
cording to the several hundred comments
summarized.
The consensus was that
any man or woman with experience
enough to speak in the home financing
business knows that the safety of the new
system in the beginning is essential to its
permanent benefits.”
Mr. Whitlock said that the reaction o f
the building and loan managers to the 13page analysis o f the association’s affairs
required with its application fo r Home
Loan Bank membership was especially
favorable. Other features o f the bank’s
lending policies include limitation o f loans
to member institutions to 50 and 60 per
cent of the value o f the mortgages pledged
as collateral.
“ Not only the $125,000,000 loaned by
the United States treasury, but the bil
lions o f private capital which will be in
vested in the regional banks by floatation
o f bonds will be safe beyond any question
because o f the policies which have been
carried out, giving thorough investigation
to all institutions applying fo r loans,”
said Mr. Whitlock. “ On file in the records
o f the Home Loan Banks and o f the fed
eral board are data relating to all o f the
loaning operations, payments o f earnings
and financial condition for the past three
or four years, for every institution apply
ing fo r a line o f credit with one o f the
banks. These records establish the bor
rowers as solvent institutions, with a past
history o f financial operations and con
servative management which entitles them
to the complete confidence o f the Home
Loan Bank lending officers. By the same
token membership in the Home Loan
Bank becomes an impressive witness to
sound financial practice.”

Moines National Bank and Trust Com
pany are as follows :
Clyde E. Brenton, chairman; W. H.
Brenton, president.
D epartment o f Commercial Banking—
Herbert L. Horton, Albert J. Robertson,
vice presidents; Winfield W . Scott, John
de Jong
assistant vice presidents; Geo.
D. Jorgensen, Harold P. Klein, Verne T.
Bonnett, assistant cashiers.
Department o f Banks and Bankers—
E. W. Jones, J. R. Capps, Clarence A.
Diehl, vice presidents.
Department o f Bank Administration—
Harry G. Wilson, cashier; R. L. Chase,
Sherman W . Fowler, assistant vice presi
dents; James F. Hart, James Burson, as
sistant cashiers.

Trust Department— Clyde H. Doolittle,
trust officer; Victor H. Pulis, W . F.
How’ell, Dutton Stahl, assistant trust offi
cers.
Mortgage Loan Department— A. L.
Kreidler, manager; Orville M. Garrett,
Laird M. Freyer, assistant cashiers.
F. C. Davis, auditor.
Directors— Geo. N. Ayres, Fred Bohen,
Clyde E. Brenton, chairman; W . H. Bren
ton, J. R. Capps, Howard J. Clark, Ross
J. Clemens, J. H. Cownie, E. C. Finkbine,
W. J. Goodwin, J. B. Green, Wm. C. Harbach, Herbert L. Horton, F. C. Hubbell,
Louis C. Kurtz, M. Mandelbaum, Jos.
Muelhaupt, E. H. Mulock, Amos S. Pear
sall, Albert J. Roberston, Oliver P. Thomp
son, Carl Weeks and Fred W. Weitz.

RATES FROM M ANHATTAN TO
Station To Station Rate
Day Evening Night Person
to
4:30
7:00 8:30
A.M.
P.M. P.M. Person
a
to
to
to
Rate
7:00
8:30 4:30
PLACE
P.M. A.M.
P.M.
Akron, Ohio ........................... $1.80 $1.55 $1.05 $2.25
Albany, N. Y. .....................
.75
.45
.65
1.05
Albuquerque, N. Mex..............
8.50
6.75
5.50
4.00
.80
Allentown (Lehigh Co.), Pa.
.45
s .35
.55
Altoona, Pa.....................
.70
1.55
1.15
1.00
Amenia, N. Y..........................
.45
.80
.55
.35
Amsterdam, N. Y. ...............
.50
1.20
.85
.75
1.30
3.00
Asheville, N. C. .....................
2.35
1.95
3.00
Atlanta, Ga. ................
2.45
1.65
3.75
.60
.50
.35
.90
Atlantic City, N. J. . . . . . . .
THTU
'^ÊÊE
' 1.05
.90
.60
1.40
.65
.75
.45, 1.05
fÿ ^ r
\
\

¡¡¡¡>T|

m
PU BES?

.$
W*

w 1-

.90
1.70
.45
.85

.80
1.45
.35
.75

.55
1.00
.35
.50

1.25
2.15
.65
1.20

'V
.'A
Ì
J

Distant
W h ere th e ch a rg e is 50c o r m ore a fe d e r a l
ta x a p p lies as f o l l o w s : 50c to 99c, ta x 1 0 c;
$1.00 to $1.99, ta x 15c; $2.00 o r m ore, ta x 20c.

M any costs, in business pro

lowa-Des M oines
N a tio n a l Elects
The recent annual meeting at the lowaDes Moines National Bank and Trust
Company, Des Moines, resulted in several
changes in the official personnel o f that
institution. Clyde E. Brenton succeeds
Louis C. Kurtz as chairman of the board
of directors. Mr. Brenton was formerly
chairman o f the executive committee. Mr.
Kurtz, while not an officer o f the bank,
retains his membership on the directorate.
Three promotions are announced, that
of John de Jong to assistant vice presi
dent, Harold P. Klein to assistant cashier,
and Dutton Stahl to assistant trust officer.
Officers and directors o f the lowa-Des

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motion and control, are hard
to keep within today’s budgetary limits. The
cost of contact can be one exception— where Long Distance
telephone service is used.
In your telephone directory turn to the list of rates to
distant points. (Above appears a section of this list in the
Manhattan, New York City, book). Note the economy of this
way to keep in touch with the far-off branch or customer.
The low cost of Long Distance is one reason why this
service has become so useful to business in these
times. Another reason is the quality of the service,
now maintained at the highest point in its history.

N orthw estern B anker

F ebru a ry 1933

★ ★ ★ ★ ★ ★ ★ ★
C ré â t
S id e s m e n
ot
H is t o r y
No American statesman has left a deeper impression upon the
habits of our people than Benjamin Franklin.
Unusually versatile, any one of his accomplishments in science,
philosophy or statesmanship would have secured for him a place
in history. Yet, he is best known for the virtues of industry,
perseverance, generosity and self-mastery, he worked out for his
own life.
In those dark days that followed the Revolution he proclaimed
by speech and printed page the necessity for thrift and constructive
habits as vital factors in the life of a new nation.
So fundamentally sound were his preachments that we find them
poignantly applicable even today.
Each year our National Thrift W eek opens on the
anniversary of the birth of America’s Apostle of
Thrift— a fitting tribute to Franklin’s great sales
manship of a homely virtue.

R O Y A L U N IO A

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LIFE INSUR ANCE
COMPANY
Des Moines
Iowa
J. j . S H A M B A U G H , President

F ebruary 1933

Insurance
Daniel Boone is president of the Midland Life Insurance Company of Kansas
City, and president of the American Life Convention. The American Life Con
vention is the oldest and largest association of life insurance companies in the world,
numbering among its members about one hundred forty companies of this country and Canada.

The Future for Li fe Insurance
IFE insurance Avill break no produc
tion records in 1933. It is very
probable that there will be a reces
sion from the marks set in 1932 during
January, February and March, but with
definite signs that fundamental condi
tions generally are improving, slowly but
surely, I anticipate that on the whole the
new year will be a satisfactory one for
life insurance and that, when the com
plete records for the entire twelve months
are checked, a gain over 1932 will be
found.
I f all o f the life insurance agents o f
this country could realize immediately
their big opportunity and would redou
ble their efforts to educate their clients
and the many millions o f men and women
who are not now properly protected by
suitable life insurance policies, the com
panies would sell more new life insur
ance in the first quarter o f 1933 than was
placed in January, February and March
o f 1932. It takes times, however, fo r the
great m ajority o f the men in the field to
fully recover from the shock o f the busi
ness depression and, like their prospects,
many are giving too much thought to the
“ hard times.”

A New Era
In my opinion there isn ’ t the slightest
question that life insurance is on the
threshold o f a neAV era o f increasing use
fulness, having won world-wide esteem
and renewed confidence o f the buying
public through an unexcelled record of
stability in the most trying period in the
history o f the institution.
It is true that a f eAV isolated companies,
purely because o f their own particular
problems, have met AAuth financial embar
rassment, but even in those cases I do not
doubt for a moment that it has been or
will be possible to make adjustments that
should completely protect the policyhold
ers and pay every death and disability
claim in full. The men and women Avho
have policies in such companies should
not become panicky and permit anyone to
talk them into sacrificing this protection.
But, on the other hand, they should re
member that the present situation is but
temporary and that they never again will

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By DANIEL BOONE
be able to purchase neAV life insurance for
the same Ioav rates they are paying on
their old policies taken out at younger
ages.

Compelled to Pay
As life insurance emerges from the de
pression Avith new honors, men in respon
sible positions in this business recognize
the fact that means must be found to
protect living policyholders from the sel
fish financial vandalism of individuals

"M E N

and women e ve ry

where to d a y recognize this
g re a t re co rd o f life insur
ance, and more and more
will th e y turn to life insur
ance fo r real p r o te c tio n ."
who force men and women with life in
surance to surrender such protection so
that they can collect a part o f their OAvn
debts. The life insurance companies gen
erally have been proud o f their ability
to Arerv quickly grant to their policyhold
ers all legitimate requests for policy loans
or the cash surrender value o f existing
policies, but they kneAV that in millions of
instances this fearfu l sacrifice by the men
and Avomen o f Am erica was being forced
upon them. Suddenly met with demands
for payment or the reduction o f financial
obligations to parties who happened to
knoAV they carried such life insurance,
they Avere virtually compelled to walk the
plank and wipe out the carefully pre
pared plans fo r the protection o f their
AvidoAvs and orphans ten, tAventy or thirty
years from noAV.

There is no question that life insurance
has been forced to furnish cash in the
place o f many other institutions that
should have had the courage to do their
duty to their OAvn clients. In such in

stances many Americans Avere forced to
sacrifice their last line o f defense and im
peril the safeguards built around their
families. Steps should be taken to pre
vent a repetition o f such a situation when
America again faces a crisis.
Weathered the Storm
This depression from which the Avorld
is now recovering Avas the second big
crisis that life insurance has weathered
in recent years. No one could have con
ceived a much greater demand on the vast
resources o f the life insurance industry
from the vieAvpoint o f meeting death
claims than the great influenza epidemic
o f 1917 and 1918. But dollar for dollar
every claim maturing in that trying pe
riod was met promptly. The stability o f
life insurance Avas the big blessing in
those dark days.
But there remained an even greater test
fo r life insurance. Unquestionably no
man within the industry and certainly
none outside had the remotest idea that
one day the vast reservoirs o f financial
resources built up through the land would
be called upon almost overnight to play
a leading part in saving the country from
a ruinous panic. True, some o f the great
leaders o f other days had looked forward
to times o f financial stress when life in
surance would perhaps be called upon to
assume an important role in providing a
substantial cushion fo r financial hard
knocks. But I am certain that even Avhen
the first big crash occurred on the stock
market back in October, 1929, no one then
correctly gauged the depths to which the
finances o f the people would plunge and
the duration o f the stress that Avas to
folloAv.
Well Prepared
But life insurance Avas Avell prepared
fo r the crisis. Certainly life insurance
alone has been able to meet every demand
on its resources dollar fo r dollar and still
maintain at par all o f its policy contracts.
Where else can be found securities sold
ten, twenty, thirty and forty years and
more ago that are worth today exactly
Avhat the salesman told the buyer they
Avould be valued at. It was only because
N orthw estern B anker

F ebruary 1933

30
life insurance in the days o f prosperity
had guided its steps in accordance with
correct principles in the conduct o f the
business that it has been able to with
stand so splendidly the terrific financial
demands that have been made upon it.
Men and Avomen everywhere today rec
ognize this great record o f life insurance
and more and more they will turn to life
insurance for real protection, not only to
provide for their loved ones, but also to
lay up funds to be used in those days
when they are no longer able to find
gainful employment or they personally
wish to take things easy and enjoy the
sunny sixties.
I am sure that the future is o f great
promise to life insurance. Perhaps it
will begin to realize on its neAV possibili
ties during 1933.

N a tio n a l
Fire Losses
One of the reasons fo r the heavy loss
of life and property by fire in the United
States— the value o f buildings and contents
destroyed by the flames in 1932 is estimated
to have reached about $442,000,000— is
the common structural practice o f neg
lecting to safeguard stairways, elevator
shafts and other vertical apertures, ac
cording to C. W . Pierce, vice president
o f the Continental Insurance Company.
Mr. Pierce, who is in charge o f the en

gineering work o f the Continental, said
that building laAvs more generally should
require proper enclosures around impor
tant floor openings. He believes also that
if contractors in this country would fo l
low the European practice o f preventing
the rapid spread o f fire by means of
proper enclosures for such vertical flame
ducts as those referred to, the annual re
duction in the loss of life and property
by fire would be startling.
“ Fires start frequently in the lower
floors o f buildings from hazards o f differ
ent kinds,” Mr. Pierce continued, “ but
they often spread and become serious be
cause o f structural defects, a leading one
being the absence o f proper enclosures
fo r stairs, dumb-waiter shafts, elevators,
ventilation, and other purposes.
“ Following its natural tendency, flame
will always rush upward and quickly trap
those Avho may be caught on the upper
floors of buildings in which fires break
out— unless it is prevented from doing
so by proper construction.
“ There has been, of course, a general
betterment in construction during recent
years in certain classes o f large buildings.
There are still, however, too many fire
traps in municipalities throughout the
country, although heavy losses in such
structures could be greatly reduced by the
use of proper cut-offs and enclosures, and
the adoption of other inexpensive, but
effective, measures.

Liquidity and Diversification
Spell S T R E N G T H ____
NWNL Invites Close Scrutiny of its 48th Annual Statement
December 31, 1932
RESOU RCES
Cash ................................................................................................... (3 .0 4 % ) $ 1,432,277.21
U. S. Governm ent Securities..................................................... (7 .8 5 % )
3,698,900.26
Canadian Governments ............................................................. (1.49% )
704,084.68
Other B on d s:
State, County, and M u n icip al............................................... (6 .5 0 % )
3,063,455.18
R ailroad M ortgage B ond s........................................................ (9 .3 7 % )
4,414,284.04
R ailroad Equipm ents ............................................................. (7 .7 4 % )
3,644,259.12
Public U tility ..............
(5 .1 1 % )
2,406,542.55
Industrial ................................................
(1 .1 5 % )
541,667.91
Miscellaneous .......................
(0 .9 6 % )
453,478.15
F irst M ortgage L o a n s :
Farm Loans ................................................................................. (10.12% )
4,766,946.57
C ity Loans ....................................................................................(11.88% )
5,595,745.44
P olicy Loans ....................................................................................(23.00% ) 10,838,063.87
Real Estate (Incl. Hom e OfficeB ld g .)................................... (4 .8 9 % )
2,302,984.78
Real E state Sold U nder C on tra ct............................................. (0.37% )
173,867.15
Prem ium s, Due and D eferred ................................................. (4 .3 9 % )
2,069,381.00
Interest Due and A ccrued and Other A ssets........................ (2 .1 4 % )
1,008,851.72
TOTAL

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

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

$47,114,789.63

Northw estern National
LIFE INSURANCE COMPANY
O.J ARNOLD. PuuDurr

'STRONG'*' Minneapolis.Minn. —L IB E R A L
INSURANCE
N orthw estern B anker

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Federal Reserve Bank of St. Louis

FORCE

F ebruary 1933

Succeeds Father
Melsher Falkenhainer o f Algona, IoAva,
has been named secretary-treasurer of the
Druggists Mutual Insurance Company by
the board o f directors.
He succeeds his father, A1 Falkenhainer,
Avho was associated Avith the company
thirty years and Avho died a short time
ago. Home offices o f the company, Avhich
operates in I oavu, Minnesota, Illinois and
Wisconsin, is located at Algona.
R. W. Harvey o f Missouri Valley, IoAva,
has been elected president o f the board,
and W. R. Beck o f Valley Junction vice
president.

C om pany
C hanges N am e
The name o f the Western Grain Dealers
Mutual Fire Insurance Company of Des
Moines, has been shortened to the West
ern Mutual Fire Insurance Company.
This action Avas taken at the recent annual
meeting of the company’s policyholders.
At the annual meeting, all officers of
the company were re-elected. They are:
President, D. O. Milligan, Des Moines;
vice president, P. J. Harvey, GoAvrie,
Iow a; treasurer, F. D. Milligan, Jeffer
son, Iow a ; secretary, G. S. Blount, Des
Moines; assistant to the president, F. E.
Yoast, Des Moines.
S. W. Wilder of Cedar Rapids, and J.
D. Kent, Des Moines, Avere re-elected di
rectors and J. F. Mueller, of Calamus,
IoAva, was named a director. All the other
directors carry over.
The Western Mutual Fire is one of the
strongest companies o f its kind in the
middle west and has experienced a steady
growth since its organization in 1907.

(1 00 % ) $47,114,789.63

L IA B IL IT IE S
Reserve on P olicies ......................................................................................... $37,173,265.00
Death Claims Due and U n p a id ........................... .......................................
N one
Claims Reported hut P roofs o f Loss n ot R eceived ..............................
149,327.01
Reserve fo r Claims U n rep orted......................................................
75,000.00
Other Reserves .................................................................................
3,479,060.61
Profits fo r Distribution to P olicyh old ers.................................................
2,048,764.71
Land and Loan Contingency R eserve.............................................. ..
369,047.14
Contingency Reserves (u n assig n ed ).........................................................
1,000,000.00
Surplus to Policyholders (Including $1,100,000.00 P aid-in C apital) 2,820,325.16
TOTAL

“ Details o f safe construction are de
scribed in the readily obtainable National
Building Code o f the fire underAAwiters,
and in the interest of safety in life, the
suggestions should be carried out wherever
possible.
“ During the present dullness in the
construction field, it should be noted, the
need for protective enclosures and other
structural improvements should provide
welcome opportunities fo r the employ
ment o f contractors and their staffs.”

$ 3 6 1, 7 19, 4 3 2

V otes N ew
C h a rte r
The Town Mutual Divelling Insurance
Company, Des Moines, at its annual meet
ing voted to extend its corporate charter
20 years, according to B. Rees Jones,
president.
The company, completing 40 years in
business, adopted neAV articles of incorpo
ration and new by-laws.
Reports showed assets had increased
during 1932 from $873,575 to $1,017,823.
The firm made a net gain o f insurance

31
in force o f $9,756,984, bringing its total
in force to $387,659,103.
In addition to Mr. Jones, other officers
re-elected are Harry Harding, Jefferson,
Iowa, vice president; Frank H. Dirst,
Hampton, Iowa, secretary; Grand McPherrin, Des Moines, treasurer, and Les
ter T. Jones, Des Moines, assistant secre
tary.
Those elected to the board of directors
are 0. B. McKinney, Cedar Rapids, Iow a;
R. J. Sullivan, New Hampton, Iowa;
George E. Beatty, Tipton, Iow a; R. Lloyd
Young, Oelwein, Iow a; Harry F. Gross,
Des Moines; Lester T. Jones; Harry Hard
ing, Jefferson, Iow a; Governor-elect Her
ring, Des Moines; Mr. Dirst, B. Rees
Jones, Mr. McPherrin; P. J. Shaw, Plo
ver, Iowa, and R. A. Kent, Oskaloosa,
Iowa.

Sales Training
C ourse
An advanced sales training course, com
piled by methods new in the field o f life
underwriting, has been brought out by
Northwestern National Life o f Minneap
olis, according to an announcement made
by President O. J. Arnold. The entire
course, which deals with all vital points
o f advanced sales technique, is contained
within the covers o f one book called “ The
NwNL Guide to Successful Life Under
writing.”
Unlike practically every other text on
life insurance selling, the NwNL guide
is not the result o f armchair theorizing
nor round-table discussion, but is founded
upon an actual market study by expe
rienced investigators who fo r several
months accompanied NwNL fieldmen in
many agencies in their selling. A nation
ally known sales research organization,
Trade-Ways, Inc., o f New York, was em
ployed to undertake the work. As a re
sult, there is nothing in the entire field of
life insurance selling that in any way ap
proaches this guide as a practical, downto-the-ground statement o f how life in
surance is and can be sold. Every idea or
method contained is a tried idea that has
been proved successful.
The guide is designed, not primarily for
beginners, but fo r the agent who is past
the early stages of his training and expe
rience and is now seeking to put himself
into a class with the more successful
agents who enjoy substantial incomes. It
contains no definitions o f insurance— no
preachments on the value o f insurance— no
instructions for filling out application
blanks— no vague discussions o f the un
derwriter’s moral and economic position
in the community. It is aimed at men who
already have passed the point of making
a living at selling life insurance and deals
with methods that help such men remove
the present limits on their earning power.
It is designed to make fair producers into

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good producers and good producers into
top producers.
The book was compiled and edited by
the experienced staff of Trade-Ways, ex
perts in the art o f salesmanship who have
been highly successful in doing similar
work fo r outstanding organizations in
other lines o f business over a long period
o f years. It has been broken down into
seven chapters and can conveniently be
read in one or two evenings’ time. The
chapters are : I, The K ey to Bigger Earn
ings; II, Getting the Facts; III, Plan
ning and Stating the Recommendation;
IV , Selling the Recommendation; Y,
Closing Difficult Sales; V I, Making P ol
icyholder Servicing Profitable; V II, Cap
italizing Your Sales Assets.
In bringing out this guide, NwNL does
not regard it as a substitute for its ele
mentary training course, “ The Doorway
to Life Underwriting,” but regards it as
a supplement and follow-up to it. A c
cording to present plans, general agents
and managers wall conduct special schools
using the guide as a textbook.

G u a ra n ty Trust
S ta te m e n t
The statement o f condition o f the Guar
anty Trust Company of New York as of
December 31, 1932, shows deposits, in
cluding outstanding checks, totaling $1,038,778,217.54, which compares with $1,★

★

★
★

★

002,027,142.61 at the time of its last pub
lished statement September 30, 1932. The
company’s capital, surplus, and undivided
profits total $271,233,494.33, consisting of
$90,000,000 capital, $170,000,000 surplus
and $11,233,494.33 undivided profits. The
latter figure shows an increase of $403,260.89 over the figure published at Sep
tember 30, 1932, and $737,761.42 over the
figure published at June 30, 1932, but
$13,725,544.16 less than the figure pub
lished December 31, 1931, due to the
amount appropriated by the board o f di
rectors out of undivided profits, as an
nounced June 1, 1932, fo r the purpose of
strengthening the reserves o f the company.
The company’s total resources are $1,410,786,974.22. Its cash on hand, in Fed
eral Reserve Bank, due from banks and
bankers, and its ownership of United
States government obligations totals $724,962,884.58.

President o f
C e n tra l H a n o ve r
William S. Gray, Jr., was elected presi
dent of the Central Hanover Bank &
Trust Company, New York, at the organ
ization meeting of the board o f trustees
January 19th, following the annual meet
ing o f the stockholders, January 12th.
George W . Davison, retiring from the
presidency, was elected chairman of the
board o f trustees. William Woodward, re-

Effective A t Once

Western Grain Dealers Mutual
Fire Insurance Company
becomes

★
★

★
★
★
★
★

★
★
★

W e s te r n M u tu al Fire
In su ran ce C o m p a n y
7 his action of shortening a name which had long been
too unwieldy for ordinary business use was taken
January 17th by the policyholders at the A n
nual Meeting of the Company
Fire, Tornado and Hail Insurance on Selected
Mercantile Properties and Town Dwellings.
A Complete Line of Automobile and W orkm en’s
Compensation Insurance.

T h e elev a to r d e p a r tm e n t w ill be c o n tin u e d
u n d er th e n a m e o f
W e s te r n G ra in D ea lers In s u r a n c e D e p a r tm e n t

★

★
★

Western Mutual Fire Insurance Co.
Operating in Iowa, Nebraska and South Dakota

Hubbell Building, Des Moines
N orthw estern B anker

F ebruary 1933

32
tiring from the chairmanship, was elected
honorary chairman of the board o f trust
ees. The management o f the past four
years continues under different titles.
Mr. Gray was born in New York in 1897.
He served during the war as a lieutenant
in the United States navy and was gradu
ated from Princeton in 1919. He was
elected vice president o f the Central Un
ion Trust Company, New York, in 1925,
and since 1929, he has been the executive
vice president of the Central Hanover
Bank & Trust Company.
Mr. Davison has been president of Cen
tral Hanover Bank & Trust Company
since 1929, in continuation o f his presi
dency of Central Union Trust Company,

to which he was elected in 1919, as suc
cessor to the late James N. Wallace.
Mr. Woodward became president of
Hanover National Bank in 1910, and has
been chairman o f the board of Central
Hanover Bank & Trust Company since
1929.

A w a rd e d
School Bonds
Award o f $120,000 Des Moines inde
pendent school district judgment funding
bonds was made to Jackley-Wiedman &
Company o f Des Moines on January 26th,
on a bid of 100.54 for l ^ s . The bonds
mature 1944-53. Harris Trust and Sav

Standards of Practice
In recent years many trade associations have adopted
standards of practice.
Likewise this institution has its standards and they
include these cardinal elements:
1. Complete knowledge of the livestock industry.
2. Complete facilities for handling livestock proceeds.
3. Speed and efficiency.
4. Experience gained from 38 years location at the yards.

Live Stock National Bank
S IO U X C IT Y , IO W A
A ffilia ted w ith N o r t h w e s t B a n c o rp o r a tio n

“ T h e B an k at the Yards”

O FFICERS
A . G. Sam, President
C. L. Fredricksen, V ice Pres.

M. A . W ilson, Cashier

W . G. Nelson, A sst. Cashier

W . C. Schenk, A sst. Cashier

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Febrnarij 1933

ings Bank was awarded $50,000 Des
Moines school district refunding bonds,
4 s, on a tender of 100.90. The latter
are 1940-42.

Taxing
M isfo rtu n e
(Continued from page 22)
grounds that the police protect plate glass
and movable property— and the policy
holders are the victims.
Even this doesn’t tell the whole story.
The clerical service required for comply
ing with these tax demands is an additional
burden on the companies, for they are re
quired to publish financial statements and
to furnish all sorts o f statistics and re
ports, much o f which is unnecessary and
all o f which costs money. And the policyholders must pay fo r it.
What are policyholders going to do
about these taxes on misfortune? Cer
tainly nothing until they are educated to
the fact that they pay them; until they
become “ insurance tax conscious;” until,
as one writer so tersely puts it, ‘the most
forgotten o f all forgotten men”— the in
surance taxpayer— remembers himself and
gets into the spotlight o f sympathetic
public recognition.

Now Is the Time
I f we are going to do anything about it
— now, right now, is the time to begin;
for the legislatures o f 44 states are now
n session. Undoubtedly there will be
many schemes proposed for getting more
money to cover growing deficits— both by
raising present taxes and by discovering
new sources o f revenue. It seems to be
characteristic o f the politically minded
that instead of cutting out waste and ex
travagance in government they are con
stantly devising new methods of getting
enough money to perpetuate them. In
stead of adjusting expenses to shrinking
income, they try to find more income to
fit expanding expenses. “ No economies;
but more taxes” — seems to be the guiding
principle of many legislators, if we are
to judge them by their deeds rather than
by their words.
Every policyholder should right now be
keenly on the watch to detect immediately
any bills increasing taxes on insurance;
and when he spots one, he should immeditaely get in touch with his state senator
and representative and protest as vigor
ously as he can against such an anti-social
proposal. F or taxes on insurance, being
taxes on protection against misfortune, are
thoroughly unsound in principle and det
rimental to social welfare.
“ Mummy, can all angels fly?”
“ Yes, darling.’
“ But cook can’t fly, and daddy calls her
his little angel.”
“ No, but she wfill fly, dear.”

33
F. Boyce,
Donahoe,
Peck, T.
Walter E.

South Dakota
Bank News
Officers South Dakota Bankers
Association

T. M. B R IS B IN E
President

P resid en t......................T. M. Brisbine
W oonsocket
V ice P resid en t.............. E. R . H eaton
Yankton
T rea su rer........................ Russell B ard
Miller
Executive M anager. Geo. A. Starring
Huron

G E O R G E A . S T A R R IN G
Executive Manager

South Dakota A nnu a l M eetings
FORM ER legislator in South Da
kota and a past president o f the
South Dakota Bankers Association, F. B.
Stiles o f Watertown has been elected
president of the First National Bank &
Trust Company, Aberdeen.
Vice presidents elected were F. G. Suttle, J. H. Jackson and Ed A. Porter.
Other officers are J. H. Suttle, cashier,
and J. E. Koch, Arthur Severson and
Fred Roesch, assistant cashiers.
Elected to the board o f directors were:
J. EL Jackson, J. H. Suttle, F. G. Suttle,
Ed A. Porter, F. B. Stiles, Geo. Fletcher
and George C. Slater, the latter three be
ing newly elected.

THE ANNUAL meeting o f the stock
holders of the Bryant State Bank was held
Tuesday afternoon, January 10th. A ma
jority of the stockholders were present.
A published statement was presented to
those present and the cashier’s report was
read which showed the bank in a good con
dition and operating on a cash reserve of
59 per cent.
The same board of directors consist
ing of B. U. Hestad, H. G. Teinte, James
Erickson, Nels N. Brekke, Frank Richard
son, Dr. A. W . Guse and L. A. Jacobson,
was re-elected.
THE STOCKH O LD ERS o f the First
National Bank o f Canton held their an
nual meeting recently.
The board of
directors elected is as follows : G. J.
Moen, Ira Bartholomew, J. A. Wallquist,
Sander Brynjulson, George Dixon, J. V.
Conklin and William Tank.
In the directors’ meeting, held imme
diately following the stockholders’ session,
G. J. Moen was re-elected president ; J. Y.
Conklin, first vice president ; J. A. W all
quist, second vice president; Adolph An
derson, third vice president ; Ira Barthol
omew, cashier, and Gena Rikansrud, as
sistant cashier.
THE ANNUAL meeting o f stockhold
ers o f the Security Bank & Trust Com
pany, Webster, was held recently. All
directors were re-elected as follows : W .

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Federal Reserve Bank of St. Louis

M. Naessig, Frank Mohs, Sr., F. W.
Halbkat, John H. Lund, I. S. Coomes,
Oscar Johnson, Ed A. Porter, E. M.
Hanse and Andrew Hedman.
Reports
fo r the year were presented and the stock
holders expressed themselves as well
pleased with the year’s showing.
THE ANNUAL meetings and elections
of officers and directors have been held by
the five Sioux Falls banks. Business re
ports made at the various meetings indi
cated a healthy condition o f each institu
tion.
The officers and directors o f four of
the banks, practically all re-elected,
f o llo w :
Security National Bank & Trust Com
pany: W . Z. Sharp, president; F. H.
Hollister, vice president; C. R. Clarke,
vice president; John Barton, cashier;
Delmar C. Low-e, J. Virgil Lowe, Oliver A.
Bray and Melvin I. Orms, assistant cash
iers; P. H. McDowell, manager trust and
bond department ; Adolph Lodmell, assist
ant manager trust and bond department.
Directors: Sam Speier, Thomas M cKin
non, A. F. Larson, Harry A. Hurd, W. K.
Van Brunt, D. S. Elliott, John Barton,
C. R. Clarke, F. H. Hollister and W . Z.
Sharp.
Union Savings Bank: J. C. Vandagrift, president and trust officer; William
C. Duffy, vice president and cashier; H.
0. Engen, assistant cashier; R. E. Arm
strong, assistant cashier. Directors : Roy
E. W illy, C. A. Christopherson, A. Iv.
Pay, II. A. Hurd, M. B. Hoffman, F. D.
Burke, J. W . Horner, William C. Duffy
and J. C. Vandagrift.
Corn Exchange: O. V. Meyhaus, presi
dent; W. C. Hollister, vice president;
George B. McMahon, cashier; F. D. John
son, assistant cashier. Directors: A. K.
Pay, Frank Kelley, R. A. Hodgson, J.
C. Vandagrift, 0 . V. Meyhaus, W . C. Hol
lister and George B. McMahon.
Citizens National Bank & Trust Com
pany: W . E. Stevens, president; Ray
G. Stevens, vice president; T. N. Hayter,
cashier; Frank J. Cinkle, assistant cash
ier. Directors: Jay B. Allen, Leonard

Walter C. Buchanan, Dr. S. A.
Otto F. Jewell, Clifford H.
N. Hayter, Ray G. Stevens,
Stevens.

THE ANNUAL meeting of the stock
holders o f the First National Bank of
Deadwood was held recently7. Reports
submitted by the executive officers showed
the bank to be in strong’ financial and
liquid condition, with cash resources of
over $1,000,000.
Preceeding to the election of a board
o f directors for the ensuing year, the
stockholders re-elected the old hoard, com
posed o f W. E. Adams, George V. Ayres,
Harold S. Black, A. A. Coburn, Lee Boyer,
R. E. Driscoll, Jacob Goldberg, John R.
Jones and W. G. Rice.
N E W LY ELECTED president of the
Exchange Bank of Lennox, is Fred Van
Zon. Other members of the board are
Sol Baffin, B. C. Burma, Frank Miller,
Louis Jacobs and Henry Jacobs.
M. PLIN BEEBE and son Ernest, Mr.
Jones and Mr. Cromholm of Ipswich, the
postmaster from Mobridge, L. M. Larson
o f Wessington Springs, W . J. Hughes and
Mrs. J. H. Drips of Gann Valley, and
Charles Johnson and R. A. Johnson of
Kimball attended the stockholders meet
ing o f the Bank o f Kimball.
The following directors were elected for
the coming y ea r: Mr. Beebe and Mr.
Jones o f Ipswich, Mr. Larson of Wessing
ton Springs, Mr. Hughes of Gann Valley,
and Charles Johnson of Kimball.

R eady to Pay
With a new7 sinking fund law in effect
and $750,000 available from sale o f tax
anticipation warrants, South Dakota is
ready to meet payments due on maturing
credit bonds.
While officials prepared machinery to
put into operation the new law diverting
half the 4 cent gasoline tax to pay rural
credit department debts, bankers ad
vanced $750,000 on 5 per cent tax antici
pation warrants maturing on or before
June 15th.

W a te rto w n M e rg e r
The First National Bank and Trust
Company and the Citizens National Bank
and Trust Company, both of Watertown,
were consolidated last month under the
name of the First Citizens National Bank.
Both organizations are affiliated with the
Northwest Bancorporation of Minneapolis.

Dies in A b e rd e e n
Carl H. Norberg, 39, former Rutland
banker, died in his home at Aberdeen
after an illness o f about one year.
Mr. Norberg had recently been trans
ferred from Sioux Falls to Aberdeen as
N orthw estern Banker

Februari/ 1933

34
a representative o f the Western Adjust
ment and Inspection Company. He Avas
born in Sioux Falls and was a graduate
o f both the academy and college dwisions
of Sioux Falls College.

Leno, Henry Bauder, Herman C. Baer,
o f Bowdle, and H. L. Woodworth, an
attorney o f Ipswich.

O p e n fo r Business

Fanned by a high wind, tire destroyed
the Farmers State Bank building of Car
thage.
In addition to the bank Avhich occupies
a part o f the first floor, the blaze gutted
the Weigold and Nordby department
store, and on the second floor damaged
the offices o f a. dentist and physician, a
beauty parlor, and an apartment.
Damage Avas estimated conservatively
at $30,000.

A fter being Avithout a banking institu
tion fo r over a month, a neAV bank to be
known as the BoAvdle State Bank has
opened fo r business. It has been chartered
with a capital o f $15,000 and $1,500 sur
plus. The officers are Jacob Kurle, pres
ident; John C. Gross and Fred G. Gross,
vice presidents, and Henry C. Gross as
cashier.
Other stockholders are John

D estroyed by Fire

MEASURE

VALUE

of a C ITY C O R R E S P O N D E N T
is its ability and desire to serve.
The facilities of this bank are com
plete for the prom pt handling of
any business.
W e w o u ld like to prove both
o u r a b ility and desire to serve
you in Sioux C ity.

FIRST

N A T IO N A L B A N | /
IN

A . S. Hanford, President

N orthw estern Banker

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Federal Reserve Bank of St. Louis

SIOUX

CITY

Frederick R. Jones, Vice Pres.
Fritz Fritzson, Cashier

F ebruary 1933

H o w Investm ent
R estrictions W ill
A ffe c t Y our Bank
(Continued from page 19)
structure Avhich found it desirable to seek
temporary credit cooperation from the
Reconstruction Finance Corporation. It
indicates also a laudable determination
among bankers to make this form o f as
sistance as truly temporary as possible and
to place banks as rapidly as possible
squarely on their own resources again.
“ In contrast to this attitude and im
proved position among the banks, no other
major class o f Reconstruction Finance
Corporation borrower has made anything
like the same rate of repayment. It should
also be noted that applications for loans
from banks have steadily decreased in
number each month since last April, until
recently the monthly number of such appli
cations was considerably less than half
Avhat it Avas in the early months o f the
opei*ations of the corporation.
Activity Increasing
“ During the last feAV months business
activity as gauged compositely by stand
ard measures such as iron and steel pro
duction, carloadings, cotton and wool con
sumption, electric power production, auto
mobile output, boot and shoe manufac
turer and other basic lines, has increased
about fifteen per cent above the low point
o f the depression last July. These meas
ures also shoAV that recent data of activity
have been characterized by a very great
degree o f stability, one authority finding
that fluctuations have remained within
the narroAA" range of less than a point on
its scale.
This year-end trend of im
provement and stability is in marked con
trast with the preceding years of the de
pression. The July to December changes
in business activity in 1931 showed a 16
per cent decline, and in 1930 a 12 per cent
decline. A s I have said, an advance of
15 per cent Avas shown fo r the last five
months o f 1932.”
Mr. Sisson added that inflation is not
the patliAvay to business recovery in the
United States and that bankers should
oppose such misguided efforts to better our
economic situation.
“ The banker faces problems, therefore,”
Mr. Sisson concluded, “ not only in the
internal management o f his bank, but also
in the external conditions surrounding his
bank. He must work just as hard as a
citizen fo r sound public policies as he
Avorks as a banker to practice sound bank
ing policies. With conditions as they are
today the tAVO are inseparable.”

An Irishman, mourning his late Avife,
tearfully remarked : “ Faith, and she Avas
a good woman. She ahvays hit me wid de
soft ind av the broom.”

35
OFFICERS and directors o f the sev
eral Lincoln institutions áre as folloAVs:

Nebraska

First National Bank

Bank News
Officers Nebraska Bankers
Association
P resid en t........................ R . H . B arber
Paxton
Chairman E xecutive C ou n cil..........
.................................. H . A . Schneider
Plattsmouth
T rea su rer..................C. P. Brinkm an
Omaha
S ecretary.................. W m . B . H ughes
Omaha

WM. B. H U GH ES
Secretary

Nebraska A n n u a l M eetings
STOCKHOLDERS o f the State Bank
o f Edgar met recently in a regular annual
meeting with E. A. Jones presiding. The
five present directors, E. W . Clack, G. E.
Martin, E. A. Jones, H. G. Springer and
Henry Koehler, were reelected and an
other new member was added to the
board. A. H. Warren, president o f the
bank, Avas elected for the place.
STOCKHOLDERS o f the Falls City
State Bank held their annual meeting.
A banquet at Hotel Weaver Avas followed
by the business session at the bank.
L. P. W irth, C. W . Thornton, E. E.
James, J. C. Mullen and W . L. Redwood
were elected directors for the year.
A general review o f the business o f the
past year Avas given by L. P. W irth,
president, Avho asserted that adverse con
ditions had been experienced by farmers,
business men, mechanics and bankers
alike.
DIRECTORS o f the Douglas County
Bank o f Omaha in Benson, avIio were
chosen at the time the bank Avas reorgan
ized last April, were re-elected at the first
annual stockholders’ meeting.
Clement L. Waldron, attorney, con
tinues as president o f the institution,
Avhile E. L. Cook and W . P. Ruzicka, ap
pointed in September, Avili continue as
executive vice president and cashier, re
spectively.
Harry Knudsen, A lfred Nielsen, L. B.
Bethards, Osar Olson, A. L. Cook and
W aldron compose the board o f directors.
The annual stockholders’ meeting o f
the Roseland State Bank was held last
month in the township hall, R. G. Lynch
presiding. Directors re-elected were R.
G. Lynch, Lei and Hall, Bert Whelan,
Otto Miller, John Klein, Horace W il
liams. L. J. Mangus Avas elected to suc
ceed Fred Ehrman. Annual reports were
given.
STOCKHOLDERS o f the United
States National Bank, Omaha, at the
annual meeting elected John W . Hughes

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Federal Reserve Bank of St. Louis

a director to succeed the late Edward M.
Martin and named Milton F. BarloAV
assistant cashier. Barlow is the son of
the late M. T. BarloAV, fo r many years
president and chairman o f the board o f
the bank. There were no other changes.
W illard B. Millard, Jr., was elected a
director o f the Omaha National Bank
at the annual meeting o f that institution.
He entered the service o f the bank in
1924 and became a vice president in 1928
after having served as assistant cashier.
He is a grandson o f the late Senator
Joseph H. Millard, president o f the bank
fo r almost 40 years. A ll officers and
other directors were re-elected.
The Stock Yards National Bank ad
journed after its meeting to reconvene
after the return o f Ford E. Hovey, presi
dent, now in Washington. There were
no changes. No official changes were re
ported by the Live Stock National.
C. A. SCH ARM ANN Avas elected presi
dent o f the Farmers State Bank at Steele
City, at the recent meeting o f the board
o f directors, to succeed his father C. F.
Scharmann. Miss Nell Drake Avas elected
cashier to fill the position vacated by
C. A. Scharmann. George Patterson re
tains his position as vice president, and
C. F. Scharmann continues as one o f the
bank directors.
DIRECTORS o f the First National
Bank o f York held their annual meeting
and declared the 102nd consecutive semi
annual dividend. Directors o f the First
Trust Company, the First State Savings
Bank and the First National Company,
institutions associated Avith the First Na
tional Bank, also held their annual meet
ings and re-elected their officers fo r the
coming year.
A MEETING o f the stockholders of
the Nebraska State Bank was held at
Bristow, over 28 being present. The same
board o f directors will act this year as
last year, Avith the exception that F. T.
Anderson takes the place o f Geo. E.
Anderson on the board.

Officers— S. H. Burnham, chairman of
the board, H. S. Freeman, chairman ex
ecutive committee ; George W . Holmes,
president; P. R. Easterday, executive
vice president; W . B. Ryons, L. C. Cha
pin, Stanley Maly, vice presidents; Leo
J. Schmittel B. Ó. Campbell and E. H.
Mullowney, junior vice presidents ; H oavard Freeman, cashier; Fred D. Stone,
manager service department.
Directors— S. H. Burnham, George W.
Holmes, H. S. Freeman, Charles Stuart,
C. B. ToAvle, Arthur A. Dobson, Paul H.
Holm, George P. Abel, L. C. Chapin, E. B.
Stephenson, B. F. Bailey, Stanley Maly,
W . H. Ferguson, E. J. Burkett, P. R.
Easterday, W . B. Ryons, Samuel C.
Waugh, C. A. McCloud, Thomas C.
W oods, W . E. Sharp, M. B. Holland,
Frank D. Williams.
First Trust Co.

Officers— S. H. Burnham, chairman of
board ; George W . Holmes, president ;
H. S. Freeman, vice president; P. R.
Easterday, vice president; Samuel, C.
Waugh, executive vice president and
trust officer ; Merle C. Rathburn vice pres
ident ; Bennet S. Martin, \Tice president ;
Fred R. Easterday, secretary; C. E.
Hinds, treasurer; O. F. Schlaebitz, assist
ant trust officer; John C. Whitten, assist
ant trust officer ; A. Suffa, assistant secre
tary; G. L. Carter, assistant secretary.
Directors— S. H. Burnham, George W .
Holmes, H. S. Freeman, Charles Stuart,
C. B. ToAvle, E. J. Burkett, P. R. Easter
day, W . E. Sharp, W . B. Ryons, Samuel
C. Waugh, Arthur A. Dobson, L. C.
Chapin, George P. Abel, Thomas C.
W oods, Frank D. Williams.
Continental National Bank

Officers— EdAvin N. Van Horne, presi
dent; T. B. Strain, vice president; EdAvard A. Becker, cashier; W . S. Battey,
assistant vice president; R. C. Johnson,
assistant vice president; C. W . Battey,
assistant cashier.
Directors— M. V. Beghtol, T. B. Strain,
S. R. McKelvie, E. A. Becker, E. N. Van
Horne.
National Bank o f Commerce

Officers— M. W eil, president; Carl
W eil, vice president; Ernest C. Folsom,
vice president; Byron Dunn, vice presi
dent and cashier; Albert A. Held, assist
ant vice president; B. G. Clark, assistant
cashier.
Directors— Ernest C. Folsom, W . T.
Barstow, L. C. Oberlies, E. W . Miskell,
J. I). Lau, Leonard A. Flansburg, William
P. W allace, P. O. Southwick, M. L.
Springer, Byron Dunn, Carl W eil, M.
Weil.
N orthw estern Banker

F ebruary 1933

36
Commerce Trust Co.
Officers— M. Weil, chairman board o f
directors; Carl W eil, president; Byron
Dunn, vice president; Ernest C. Folsom,
vice president; M. L. Springer, secretarytreasurer; Oliver DeMars, assistant sec
retary.
DIRECTORS serve as officers at the
Farmers Bank, Nebraska City, and those
who were re-elected a re : J. H. Catron,
president; Mike Gardner, vice president;
J. R. Stevenson, cashier; Mark Fullriede,
assistant cashier.
Re-elected directors o f the Merchants
National Bank are Paul Jessen, P. J.
Homeyer, R. 0 . Marnell, James T. Shew
ed and E. M. Shewed. Officers are James
T. Shewed, president; R. 0. Marnell,
cashier; W . G. Eisenmann, assistant cash
ier, and H. W . Montgomery, assistant
cashier.
Directors o f the Otoe County National
Bank are W . H. Pitzer, H. P. Meyer, H. J.
Stocker, Morton Steinhart, J. D. Stocker.
A t the Nebraska City National Bank
the following will serve as directors for
1933: A. B. Wilson, 0. N. Nelson, W il
liam Kropp, A. P. Stafford and O. J.
Schneider. Officers are A. B. Wilson,
president; 0. N. Nelson, vice president;
0 . J. Schneider, cashier; G. W . Slack,
assistant cashier, and W . L. Wilson, as
sistant cashier.
POUR MEMBERS o f the board o f di
rectors o f the Federal Land Bank, J. M.
Lammers, J. H. Edwards, A. A. Ram
mers and J. A. Thoene, were re-elected at
the annual meeting o f members held in
Hartington. Fred Hoesing was elected
to serve in the fifth place, W . IV. M cKen
zie being the outgoing officer.

DENNIS P. HOGAN was re-elected
president o f the Federal Land Bank o f
Omaha at the annual meeting o f direc
tors. A ll other officers o f this bank and
o f the Federal Intermediate Credit Bank
also were re-elected.
John Carmody is vice president; A n
drew Kopperud, vice president and treas
urer ; T. C. Hornby, vice president; Har
vey, M. Johnsen, general counsel, and H.
E. Baird, chief appraiser. Charles McCumsey is manager o f the Federal Inter
mediate Credit Bank and L. N. Burch is
assistant manager and counsel.
STOCKHOLDERS o f the O ’Neill Na
tional Bank held an annual meeting and
elected the following officers: President,
S. J. W eekes; vice president, C. P. Han
cock ; cashier, Francis Cronin; assistant
cashier, Edward Quinn. Directors: S. J.
Weekes, Mrs. S. J. Weekes, Edward
Quinn and Francis Cronin.
The stockholders and directors o f the
First National Bank o f O ’Neill elected
directors as follow s: J. F. Gallagher,
J. P. Mann, H. J. Birmingham, Edward
M. Gallagher and Edward T. Campbell.
Officers elected: President, J. F. Gal
lagher; vice presidents, H. J. Birming
ham and Edward M. Gallagher; cashier,
Edward T. Campbell; assistant cashier,
Helen Biglin.
E. J. MACK, who has been an officer
o f the Security State Bank o f Atkinson
fo r the past twenty-five years, was elected
president o f that institution Wednesday,
January 11th, at the annual meeting o f
the stockholders. He succeeds Henry
Hookstra, who was named vice president.
J. J. Krska was elected cashier.
Directors o f the bank are May E. Hart,

LIABILITIES
Capital ......................................... $ 4 50,000.00
Surplus .........................................
100,000.00
Undivided Profits, N et.
64,441.70
Unearned Discount ...................
25,624.91
Reserved for Taxes, Interest, etc.
25,639.01
Dividend payable Jan. 3, 1 9 3 3 .
6,750.00
Circulation ..................................
200,000.00
Deposits ....................................... 4,065,039.71

$4,937,495.33

T h is

B ank Has N O

A f fi l ia t e d C o m p a n i e s

L IV E S T O C K N A T I O N A L B A N K
Utxx —

OMAHA
-H * —

N orthw estern Banker

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

MV—

— - v v

F ebruary 1933

« X

—

------------------- x k

The STOCKHOLDERS o f the Farmers
& Merchants Bank, Ceresco, held their
annual meeting on January 10th. The
follow ing were elected to serve as direc
tors fo r the coming year: Frank W edberg, Herman Nelson, John Martin, Olof
Olson, Nels Olson, J. H. Barry and Fred
Mostrom. The directors then organized
by electing Frank Wedberg, president;
Herman Nelson, vice president, and Fred
Mostrom, cashier.
F IV E DIRECTORS were re-elected at
the annual meeting o f stockholders o f
the National Bank o f Neligh, January
10th. They are L. E. Jackson, Fred
Penn, C. H. Ray, Dr. U. S. Harrison and
J. W . Spirk.
On January 16th the directors elected
C. H. Ray, cashier. Mr. Ray has been
acting in that capacity since R. B. Genoways resigned some time ago, and will
continue to devote his full time to the
bank.
AT THE ANNU AL meeting o f stock
holders o f the Spencer State Bank, the
board o f directors was re-elected and
will serve another year.
Hans Storjohann was re-elected presi
dent; Henry W oidneck, vice president ;
J. M. Pucelik, cashier; Herman W oid
neck, Jas. Zidko, L. I. Hines and E. B.
Bradley, board members.

The follow ing is the personnel o f the
officers o f the City National Bank: C. N.
Beaver, president; Frank L. Borden, vice
president; J. E. Shrigley, cashier; K . G.
Dreier and R. J. Anderson, assistant cash
iers.

M e m b e r o f F e d e r a l R e s e r v e S y s t e m a n d O m a h a C l e a r i n g H o u s e A s s o c ia t i o n

THE STOCKHOLDERS o f the Boyd
County State Bank at Anoka held their
annual stockholders’ meeting on January
11th, and the follow ing officers were re
elected :
President, A. J. F ink; vice presidents,
Olof Monson, Thos. Thomsen; cashier,
L. D. Monson.
The following directors were elected:
A. J. Fink, Olof Monson, Thos. Thomsen,
John E. Monson and Arthur Schuman.

THE ANNU AL meeting o f the stock
holders o f the City National Bank and
the City Trust Company was held re
cently and all officers and directors were
re-elected.

Condensed Statement December 31, 1932
RESOURCES
Loans and Discounts.....................$2,537,964.79
Bonds and Securities.................
75,764.52
U. S. Bonds to Secure Circu
lation ......................................
200,000.00
U. S. Government Securities..
760,552.13
Stock in Federal Reserve Bank
16,500.00
Banking House ...........................
52,000.00
Furniture and Fixtures...............
None
Other Real Estate........................
1.00
Due from U. S. Treasury..........
10,000.00
Cash and Sight Exchange.......... 1,284,712.89

E. J. Mack and H. Hookstra, all o f A t
kinson.

■

THE ANNU AL meeting o f the share
holders o f the Farm ers’ State Bank of
Tecumseh was held at the bank. All offi
cers were re-elected fo r the coming year.
The financial showing o f the bank Avas
most satisfactory.

37
United States National, Avas elected \Tice
John H. Sullivan, who Avas president of
president, W illiam B. Hughes Avas elected
the bank from its organization in 1902.
H.
H. “ H a l” Roberts was elected
secretary and manager.
Miss Hannah Sullivan Avas named vice
president o f the Omaha Live Stock E x
president; M. J. Dolce, cashier, and Leo
change. He succeeds A. D. Majors. R ob
Temper, assistant cashier.
Directors
S ta te -O w n e d Bank
erts was vice president and has been a
were: Vincent Glaser, Mr. Dolce and Dr.
A Nebraska-oAvned bank established
director for seven years.
Sullivan.
with $1,200,000 worth o f government
A. E. Rogers was named to succeed
bonds, Avas proposed in the senate re
Roberts as vice president.
Directors
H eads C le a rin g House
cently by State Senator Boelts (Dem.)
elected for three-year terms are Howard
T.
L. Davis, vice president o f the First o f Central City.
Moberly, C. F. Cox and B. B. Blanchard.
The proposed bank would be depository
National Bank, Avas elected president o f
fo r all public funds o f the state and its
the Omaha Clearing House Association
In "R e c o v e ry " S tage
subdivisions and the state Avould guaran
at the annual meeting. He succeeds A l
Forty-five bankers, investment bank
vin E. Johnson, vice president o f the
tee deposits, which would be tax free. In
ers and life insurance executives inter
control would be directors chosen one
Live Stock National Bank.
viewed by A. C. Potter, president o f
from each congressional district by the
GAvyer H. Yates, president o f the
Burns, Potter & Company, Omaha, on a
trip to New York, Boston, Philadelphia
and Chicago, believe the United States is
in the final or “ recovery” stage o f the
depression.
“ It Avas the opinion o f the business

H eads Stock Exchange

leaders with Avhom I talked that this de
pression has had four phases,” he said.
“ T avo o f them have been normal, and
tAvo abnormal.

“ W e entered the fourth and ‘ recovery’
stage last June, according to those I interviewed. This is vieAved as the second
normal phase. Confidence is returning
and there is less panic among the people.
The market fo r high grade bonds is very
strong and this is regarded as absolute
evidence o f recovery. Carloadings are
increasing steadily in the east and are
showing less decrease in this part o f the
country and bank deposits over the coun
try have shoAvn improvement each Aveek
since last Ju ly.”

Salmon P. C hase , Secretary of the Treasury under L incoln

THE

C hase N ational Bank
o f the City o fü fe w York

R e-elected
Louis S. Clarke o f Omaha Avas re
elected president o f the Mortgage Bank
ers’ Association o f Nebraska at the an
nual banquet and business meeting. John
D. WadsAvorth o f Council Bluffs Avas
elected ATice president.
Although detailed discussion o f taxa
tion and tax problems took place, the
association members passed no resolu
tions outlining their suggestions, accord
ing to Mr. Clarke.

Reorganization o f the Omaha Sym
phony orchestra, fo r a season o f three
more concerts this year, and under man
agement separate from the board Avhich
has controlled the orchestra in the past,
is announced.
The neAV organization Avili be called
the Civic Orchestra Society o f Omaha,
and W . Dale Clark Avas elected president.

H eads S palding Bank

W . A

l d r ic h

Chairman Governing Board and President

h ar les

S. M

Chairman

N am ed President

in t h r o p

Board o f Directors

a in

o h n

cH u gh

Chairman
Executive Committee

The Chase National Bank invites the
accounts of banks, bankers, firms,
corporations and individuals.

The stockholders o f the Spalding City
Bank elected Dr. M. M. Sullivan presi
dent o f the institution at their annual
meeting. Dr. Sullivan is a son o f the late

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

N orthw estern Banker

F ebruary 1933

38
governor and the state tax commissioner
fo r terms o f two years.
Farmers, laborers, manufacturers, mer
chants, educators and others engaged in
“ useful occupations” could get loans
from the bank to the amount o f 60 per
cent the value o f real estate or other
tangible securities.
Speculators and monopolies would be
barred.

Mr. Clarke, president o f the Nebraska
Mortgage Bankers Association, is a mem
ber o f the national advisory committee
for shaping the relief plan, now pending
in Congress.
“ The east is finally beginning to real
ize that prosperity o f the farmer means
prosperity o f the nation, ’ ’ said the
speaker, ‘ 1and if we d on ’t get relief now,
with the opportunities presented, w e ’re
just a bunch o f suckers.”

A llo tm e n t Plan

He believes, he stated, that the chief
reason fo r the depression is that agri
culture has not had the benefit o f the
high tariff wall that surrounds this coun
try.
“ Forty-four per cent o f all our people
live on farms or in small towns o f 2,500

The voluntary domestic allotment plan
offers an opportunity fo r agriculture to
get the equality to which it has been en
titled for so long, Louis S. Clarke de
clared in a recent address before the
Omaha Real Estate Board at the Conant.

population or less,” he continued. “ To
day, their buying power has been cur
tailed to an almost unbelievable degree.
The voluntary allotment plan will restore
this buying power, I ’m convinced.”
Mr. Clarke favors applying the plan,
at first, to only Avheat and cotton, and
later to hogs.

Banker Dies
George Brechler, 63, former Page
banker, died at his home in Battle Creek,
recently. Mr. Brechler underwent an
operation several months ago from which,
according to reports, he did not entirely
recover.
For several years o f his life Mr. Brech
ler was deputy county treasurer o f Madi
son county, following which he went to
Washington, D. C., where he held a gov
ernmental position. He was employed in
the Battle Creek Bank fo r a number of
years and then helped to organize the
Page State Bank fo r which he served as
president for some time. Several years
ago he retired from active life and made
his home in Battle Creek.

News and Views
(Continued from page 17)

The N orth ern Trust C om pany’s en tire buildin g, in the heart o f C hica go’ s financial dis
trict, is d ev o ted e x c lu s iv e ly to servin g the financial and p ro p erty needs of its cu stom ers.

recent

Thus another year of progress

year individuals and firms were
entrusting to this bank almost

the

is added to the banking record

66 per cent more in deposits
than at the same period a year
ago.

Total assets had grown

of The Northern Trust Com
pany.

Upon this record, which

stretches back over 43 years,

from $104,598,000 on December

the

31,

banks, firms and individuals is

1931,

$165,248,000

December 31, 1932.

business

conservative

cordially invited.

1889

1933

THE NORTHERN
TRUST COMPANY
N O R T H W E S T C O R N E R L A S A L L E A N D M O N R O E STR EE T S
^

N orthw estern Banker

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Federal Reserve Bank of St. Louis

CHICA G O

Febrnarij 1933

deputy manager o f the American Bankers
Association, fo r comptroller o f the cur
rency in the Roosevelt administration.
Mr. Simmons has a wide acquaintance
ship among bankers and those who have
intimate knowledge of his many years of
efficient worlc in the American Bankers
Association say that he is eminently qual
ified to fill the post o f comptroller. Mr.
Simmonds has a pleasing personality and
rates high as an economist and banking
analyst. He has been identified chiefly
Avith the state bank division o f the Ameri
can Bankers Association.
RTH U R D. W ELTON , Avell knoAvn
financial writer, has just written a
neAv book entitled, “ Mr. W eld Retires.”
This is published by the Sears Publishing
Company, 114 East 32nd Street, NeAv
York, and is “ an amusing theme, a tense
qolot intriguing characters and a young
girl Avho will Avalk straight into your affec
tions.”
All of which should make this one o f the
best sellers.

Pretty Young Thing: “ Are you sure
these curtains Avon’t shrink? I Avant them
fo r my bedroom window's.”
Candid Clerk: “ Lady, with your figure,
you should care— you should care.”
Girl’s Father: “ So you Avant to marry
my daughter, eh? Well, my ansAver de
pends upon your financial position.”
Young M an:
“ What a coincidence!
My financial position depends upon your
ansAA7er.”

39
Pattison, Andrew Johnson, Charles E.
Armstead, J. S. Gates, G. H. Winsor and
A. J. Wentzel; officers, Mr. Pattison, pres
ident; Mr. Wentzel, vice president; Mr.
Gates, cashier, and G. R. Smith and Floyd
Cox, assistant cashiers.

Minnesota
Bank News
Officers Minnesota Bankers
Association

M. F. ERNST
President

President........................... M. F. Ernst
St. Paul
Vice President............ William Duncan
Mankato
Treasurer...................... D. J. Fouquette
St. Cloud
Secretary............................George Susens
Minneapolis

GEORGE SUSENS
Secretary

M in nesota A n nual M eetings

SH A RE H O LD ER S of the Security
State Bank, Maple Lake, re-elected all its
officers. The officers are John A. Elzenpeter, president; Albert Westrup, vice
president; Adolph Herold, John Welton
and N. D. Vandergon, directors; H. A.
Ney, cashier, and H. Bolduan and F. Bolduan, assistant cashiers.
OFFIC ER S and directors for the com
ing year were named by the Security Bank
& Trust Co., an affiliate o f the Northwest
Bancorporation, and the First National
Bank at meetings in Owatonna. Sidney
W. Kinyon was re-elected president o f
the First National Bank; Harvey Johnson,
cashier; F. H. Joesting, vice president,
and C. A. Tincher, secretary-treasurer.
Directors named are Mr. Kinyon, Mr. Tin
cher, Guy Doolittle, Mr. Joesting and H.
A. Hanna. All members of the board of
directors o f the Security Bank & Trust
Co., were renamed. They include B. J.
Meixner, Thomas E. Cashman, Paul H.
Evans, Thomas R. Kelly, 0. M. Hegnes,
Robert K. Evans and A. A. Endres. Offi
cers chosen were Paul Evans, president;
Mr. Kelly, vice president; Mr. Hegnes,
cashier.

F E W CHANGES were made by nation tors. Edward W. Decker is president of
al banks in St. Paul at their annual stock the Northwestern National Bank.
holders’ meetings.
The affiliates are: Third Northwestern
At the First National, Frank B. Kel National Bank, R. E. MacGregor, presi
logg became a vice president and general dent; Fifth Northwestern National Bank,
counsel. He formerly was an advisory Clarence E. Hill, president; Central Na
vice president.
All directors were re tional Bank, John Schmidler, president.
elected.
At the Twin Cities National Bank, H.
STOCKHOLDERS of the Goodhue
H. Bigelow retired from the presidency County National Bank, Red Wing, con
and became chairman of the board. Albert firmed appointment of B. M. Boxrud as
L. Ritt was elected president. He formerly president o f the institution to succeed the
was vice president o f the Minnesota late C. J. Sargent, made by the board of
Transfer State Bank, which was absorbed
directors recently. They also confirmed
a few months ago by the Twin Cities Na the elevation o f N. C. Lien to cashier and
tional.
Present vice presidents o f the promoted E. A. Nordly to the post of
Twin Cities National were re-elected.
assistant cashier.
No changes were reported by the
American National, Empire National,
E.
J. P R IE B E, a member of the staff JO SE PH U N D E RLE AK Avas elected
Stockyards National or others.
of the bank since 1906, was chosen cashier president of the First National Bank of
George H. Prince, chairman of the o f the Farmers National Bank o f Waseca,
Chatfield, at the annual meeting. Officers
First National Bank, told stockholders
at its annual meeting, succeeding C. H. also named were T. W. Pease and F. G.
that the institution made an excellent rec Bailer. Emerson C. Wards was re-elected
Stoudt, vice president; A. 0 . Krogan,
ord in the past year.
president; N. P. Powell, vice president; cashier, and Beth Onstine, W. A. KietzJ. C. Hazlitt, Jr., and Harlan Hamlin, schman and R. J. Halloran, assistant
AT THE ANNUAL meeting of stock assistant cashiers; E. C. Ward, N. N.
cashiers.
holders and the election of officers and Powell, E. J. Priebe and W. S. Brown,
board o f directors of the First National Waseca, and S. W. Kenyon, Owatonna,
TH REE NEW directors of the Fidelity
Bank, o f Deep River, the following were directors.
State Bank of Minneapolis were elected
elected: George H. Herreid, president;
at its annual meeting and all other direc
S. J. Moran, vice president ; Marc Adams,
OFFIC ER S ELECTED at the annual tors and officers were re-elected. The new
cashier; M. J. Baker, Fred Breid and W.
meeting o f the Duluth National Bank were directors are: Seman Kaplan of Lieben
R. Wallace, directors.
announced recently. Dr. William J. Ek- berg & Kaplan, architects and builders;
lund was re-elected president. Other offi Clifford L. Swanson, manager of Nels
THE ANNUAL stockholders meeting of cers are : P. George Hanson, vice presi Swanson Fuel & Transfer Co., Inc., and
the State Bank o f New Ulm was held re dent; Nathan Eyteheson, cashier ; J. A. Emmett Duemke, president of the Argus
cently. The directors were re-elected as Hagberg and R. S. Carlson, assistant Publishing Co. Mr. Duemke Avas elected
follow s: Fred J. Backer, Willibald Eib- cashiers, and Dr. Eklund, Mr. Hanson, to the board to succeed his father, the late
ner, Wm. C. Muesing, J. A. Ochs, E. A. J. W. Lyder, Otto Johnson, R. L. Griggs,
State Senator LeAvis Duemke.
Stoll, Andrew Saffert and Cust Stuebe. E. C. Peterson and F. W. Sulivan, direc
All the officers were also re-elected : A n tors.
THE K A N A BE C STATE Bank held
drew Saffert, president; Fred J. Backer,
Directors and officers o f the Community its annual meeting recently. The folloAVvice president; Edward A. Stoll, cashier;
Savings Bank, Duluth, chosen at the an ing directors were elected for the ensuing
P. Kitzberger, W . J. Gareis, F. J. Schugel, nual stockholders’ meeting, are: Joe An- year: Otto Allman, Art C. Rentz, J. P.
assistant cashiers; R. C. Dummer and sell, J. F. Bingham, J. S. Smith, Andrew Gotfredson, Kleo Mcllhargey, John G.
Leander Dauer, bookkeepers.
Ekstrom, Rudolph Peterson, Olaf Haugs- Dahlman and Frank P. Powers.
rud and Aaron Siegel; C. E. Kinney,
At the directors meeting held on the
ALL DIRECTORS and officers o f the president; Mr. Bingham, vice president, same date the folloAving officers Avere
Northwestern National Bank o f Minne and Robert Tierney, cashier.
chosen : Frank P. Powers, president; A r
apolis, and three affiliates in the North
Stockholders of the United States Na thur C. Rentz, vice president; M. R.
western group were re-elected at the an tional bank elected their directors and Powers, cashier; R. P. Campbell, assist
nual meetings of stockholders and direc officers. They a re: Directors, Byron M. ant cashier.

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Federal Reserve Bank of St. Louis

N orthw estern Banker

F ebruary 1933

40
THE ANNUAL M EETING o f The
Klein National Bank was held in the bank
ing room last month. C. H. Klein, presi
dent of the bank, C. P. Klein and O. W.
Schulz, members o f the board o f direc
tors from Chaska, were present.
C. H. Klein was re-elected president,
Grant Jacobson was re-elected vice presi
dent, Leo A. Nikolai and Roy A. Stemsrud were re-elected as cashier and assistant
cashier, respectively.
ALL OP THE OLD officers and direc
tors of the First National Bank of Eveleth were re-elected at the annual meet
ing. The officers are George A. Whitman,
president; R. M. Cornwell, vice president;
G. R. Gable, cashier; A. I. Naslund, as

sistant cashier.
The directors: W . P.
Chinn, R. M. Cornwell, T. H. Davey, Dr.
C. W . More, Peter Peterson, George A.
Whitman, J. S. Wilson.
The officials of the Miners National
Bank were not changed at the annual meet
ing held January 10th. James Robb is
president; L. G. Castle and Alfred Hoel,
vice presidents; John R. Schuknecht,
cashier. The group o f directors consists
o f James Robb, L. G. Castle, A lfred Hoel,
E. A. Kefgeu and J. R. Schuknecht.
THE ANNUAL stockholders meeting of
the First. State Bank of Meriden was held
recently. The following directors Avere
elected: Mr. H. H. Wicklow, J. C. M il
ker, J. H. C. Sehuldt, Henry Boege, H. J.

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These Unusual Days
c a ll f o r

Expression o f Thanks

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A hundred thousand loyal friends and customers
have enabled us to round out a quarter of a century
of success, and we desire to express our appreciation
for the patronage that has made this success possible.

YOU, TOO

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You, too, have business friends and patrons who
deserve some recognition for the part they have had
in the success of your institution— for the patronage
that has kept your doors open when so many banks
have been compelled to close.

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Gerlach-Barklow good will advertising me
diums make new friends and keep old friends
from forgetting.
The new 1934 line is now ready for your
approval. Watch for the Gerlach-Barklow man
with the finest and most comprehensive line we
have ever created. He will call on you soon.

The GERLACH-BARKLOW COM PANY
JOLIET, ILLINOIS
ART CALENDARS DELUXE
BUSINESS GREETINGS
FANS, CUT-OUT-PUZZLES

DIRECT M A IL ADVERTISING
FOLDERS, BOOKLETS, BLOTTERS
P A R A G O N LEATHER UTILITES

A S K T H E G E R L A C H -B A R K L O W M A N TO S H O W YOU
“ M A D O N N A OF T H E LILIES"

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N orthw estern Banker

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

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3
F ebruary 1933

Karsten, Fred Mundt and Ed. Buscho.
A fter the general meeting, the directors
met to organize fo r the following year. J.
H. Sehuldt was elected president; H. H.
Wicklow, vice president; W . P. Jones,
cashier, and Alfred W . Sehuldt, assistant
cashier.
THE ANNLTAL meeting o f stockhold
ers o f the First National Bank of Pavnesville was held at which all former direc
tors were re-elected. Mr. Anson Evans
was again elected president and chairman
of the board o f directors. Phil J. Noonan,
o f Alexandria, and N. H. Dreis, of this
city, were elected vice presidents; H. J.
Sauer, cashier and manager; C. E. Gesme
and E. J. Nehring, assistant cashiers and
John G. Tuseth, bookkeeper and teller.
COLONEL S. COLE, St. Paul, was
elected president of the First National
Bank o f Hastings; F. W. Finch and W.
Beerse, vice presidents; H. F. Schoen,
cashier and trust officer; Karl L. Hanson,
assistant cashier; Miss Elizabeth Moore,
assistant trust officer; Earl Henry, teller,
and H. S. Cole, F. W. Finch, W. Beerse,
T. P. Gardner and H. O. Schoen, directors.
Theodore Albrecht, Minneapolis, was
elected president of the Hastings National
Bank; Charles Doffing, cashier ; Miss Edna
Darling, assistant, and Theodore Albrecht,
T. Cook, Charles Doffing, L. P. Kingston
and A. Doffing, directors.
THE CITIZENS STATE BANK , of
Gaylord, held its annual meeting on Tues
day forenoon, January 10 th, and re
elected the same personnel as has been at
its head fo r a number of years past. S. J.
Maurer who has been connected with the
institution since it was organized, was
re-elected president ; E. P. Hoerschgen and
H. C. Gildemeister are the vice presidents;
I. M. Nelson is cashier, and D. W . Fenske
and John Estenson are assistant cashiers.
DR. J. C. ROTHENBURG, A. C. Ochs,
George P. Forster, Arthur J. Lehrer, J. A.
Rieck, J. R. Schmid and E. L. Nippolt
were re-elected directors o f the State Bank
o f Springfield, at the annual meeting. Offi
cers named were : E. L. Nippolt, president ;
Dr. J. C. Rothenburg, vice president ; M.
J. Foy, cashier and A. J. Black, Walter
Frank, Arthur S. Birkemeyer and Wm.
Kuehl, assistant cashiers.
THE ANNUAL meeting of stockholders
o f the State Bank o f Cobden was held
recently. The following directors were
elected fo r the ensuing year: H. H.
Schultz, M. G. Hanson, Louie Mikaelson,
E. P. Grabow and A. 0. Wensberg. A fter
the stockholders’ meeting the annual direc
tors’ meeting was held and the following
officers were re-elected: President, H. H.
Schultz; vice president, Louis Mikaelson;
cashier, E. P. Grabow.

41
THE ANNUAL M EETIN G o f the
stockholders o f the First National Bank,
of Pine City, was held recently, when they
re-elected J. C. Carlson, president; R. P.
Allen, J. A. Peterson and Geo. Dorr, vice
presidents and J. D. Boyle, cashier. They
also comprise the board o f directors. I.
A. Melin and M. J. Baron were elected as
assistant cashiers.
At the meeting o f the board of directors
of the Farmers & Merchants State Bank,
Dr. E. G. Nethercott was elected presi
dent ; W . A. Sauser, first vice president;
A. M. Challeen, second vice president; C.
M. Pennington, cashier, and George Daley,
assistant cashier. P. IT. Anderson was re
elected chairman of the board o f directors.
AT THE ANNU AL meeting o f the First
National and the Citizens State Bank, of
Fairfax, Mrs. E. F. Sell was elected presi
dent of the First National; A. G. Briese,
vice president; Mrs. Gertrude 0. Fiss,
cashier; C. J. Braun, assistant cashier, and
G. A. Rieke, Senator Herman Schmechel,
Otto IV. Kiecker, A. 0. Mundahl, Mrs.
E. F. Sell, Mrs. G. 0. Fiss, and A. G.
Briese, directors. Reuben Sell was elected
president o f the Citizens State B ank; Ern
est Luedtke, vice president; A. R. Quast,
cashier; IV. B. Frank, assistant cashier,
and Ray Wellner, L. J. Bruggeman, Fred
Berg, Reuben Sell and Ernest Luedtke,
directors.
R. S. B A N FIE LD , vice president o f the
First National Bank of Austin, was elected
to the board of directors of the First Na
tional Bank, Blooming Prairie, at the an
nual meeting.
All officers and directors were re-elected.
They were Sam A. Rask, president ; T. C.
Cashman, vice president ; C. A. Peterson,
vice president and cashier; B. Betlach,
vice president; Ray Herron, assistant
cashier; C. H. Christianson, assistant
cashier. The officers with Mr. Banfield
form the board o f directors.

T h e facilities which
this Bank offers its corre
spondents have been de
veloped through serving
the exacting and diversi
fied needs of a large and
discriminating clientele.
N early all the nationally
k n o w n industries carry
their Philadelphia accounts
with us.
Our list of correspondents
includes the leading finan
c i a l i n s t i t u t i o n s o f the
country, both large
and small.

DIRECTORS of the First National
Bank o f V alker, at their annual meeting
elected R. F. Ross vice president o f the
bank, to replace’ Frank C. Bragg, who re
signed from the post January 1st.
ELECTION OF the board of directors
of the first National Bank o f Brainerd
was held at the annual meeting o f the
stockholders.
Five directors were renamed to a new
term and a sixth member, C. W. Boteler,
was elected to membership on the board.
The directors renamed were G. D. LaBar,
Fred A. Farrar, H. P. Dunn, IT. R. White
and B. L. Lagerquist.

PHILADELPHIA
N A T IO N A L B A N K
ORGANIZED 1803

PHILADELPHIA, PA.
CAPITAL and SURPLUS______________ $30,000,000

THE ANNUAL meeting o f the Farmers
State'Bank of •Nerstrand, was held in the
directors’ room. Following the business
that came before this meeting directors

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Federal Reserve Bank of St. Louis

N orthw estern Banker

F ebruary 1933

were elected as follow s: F. A. Rolling,
Dr. H. 0. Elthon, Charles Bollenbach, K.
A. Finseth and Albert Quie. In the after
noon the directors met and elected F. A.
Rolling, president; Charles Bollenbach,
vice president; R . A. Finseth, cashier; Dr.
H. 0 . Elthon and Albert Quie, directors,
and L. C. Bollenbach, assistant cashier.

THE ANNUAL meeting o f the First
National Bank of Milaca, was held at the
First National Bank recently! and the
following directors were elected to serve
in 1933; M. Iv. Rudd, A. E. Allen, Ray B.
Hixson, Geo. W . Rirkeby and J. A. Allen.
The new officers elected a re: J. A. Allen,
president; M. R . Rudd, vice president;
Geo. W. Rirkeby, cashier.

A. M. MAGNUSON and George Werstlein were elected to the board o f directors
of the First National Bank of Thief River
Falls. Mr. Magnuson is owner of the Inde
pendent Fruit and Grocery, and Mr.
Werstlein is cashier at the bank. Other
directors are 0. D. Ostby, Rasmus Oen,
T. M. Thronson and E. M. Bennes,

OFFIC ER S and directors o f the Glenwood State Bank and the Pope County
State Bank were re-elected at the annual
meetings of the two institutions.
Theodore Aune was retained as presi
dent of the Glenwood State Bank, with
J. 0. Haugen, vice president and cashier,

N orthw estern Banker

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Federal Reserve Bank of St. Louis

and Louis Robards, assistant cashier. J.
0. Grove, W . H. Engebretson and Thomas
Callaghan continued as directors.
E. A. Gandrud was re-elected president
o f the Pope County State Bank, while J.
E. Griffith and T. R. Thompson were re
named vice president and cashier, respec
tively. Andrew Lund remains chairman
o f the board o f directors of the Pope
County Bank.
M A RTIN HU SEBY was elected presi
dent of the First National Bank o f Battle
Lake, at their directors’ meeting, follow
ing the annual stockholders’ meeting.
The stockholders elected the following
directors, to take office at once: Martin
Huseby, Ole Bondy, William Thorstad, J.
S. Peterson, Millard Ranstad.
THE SH A RE H O LD ER S o f the First
National Bank o f Aitkin had their annual
meeting with sixteen members present.
All o f the following stockholders were re
elected as directors for the ensuing year:
G. M. Robinson, B. R. Hassman, Peter
Larson, A. Zeese, John A. Healy, N. Fal
coner, E. F. Franzen, William Megarry
and R. N. Hasling.
In a New Orleans court a man was
charged with abusing his team and using
loud and profane language. One o f the
witnesses was an old negro.
“ Did the defendant use improper lan
guage while he was beating the horses?”
“ Well, he talked mighty loud, sah.”
“ Did he indulge in profanity?”
The witness seemed puzzled, so the
lawyer put the question in another form.
“ What I mean, Uncle Sam, is, did he
use words that would be proper for a
minister to use in a sermon?”
“ Oh, yes, sah,” the old man replied,
with a grin, “ but dey’d have to be ’ranged
in different order.”

Mother W ill Spank
“ Mother, can’t I give baby a bite of
my apple?”
“ He has no teeth to bite with yet,
dear.”
“ Can’t you lend him yours, mother?
They’re on the bureau.”

A Question of Authorship
First Student: “ Great Scott! I ’ve fo r
gotten who wrote ‘ Ivanhoe.’ ”
Second D itto: “ I ’ll tell you if you tell
me who the dickens wrote ‘The Tale of
Two Cities.’ ” — Cornell Widow.
Mr. P oorp a y : “ I would like to have this
pair of trousers reseated. I sit a lot, you
know.”
Tailor: “ All right, and I hope you
brought the bill I sent you along to be
receipted, too.
I ’ve stood a lot, you
know.” -—The Islic.
Februarij 1933

N o rth Dakota Bank News
Officers North Dakota Bankers Association
President.........................................................................T. A. Tollefson
IMckinson
Vice President.....................................................................D. R. Green
Grand Forks
S ecreta ry................................................... ...............................C. C. W attam

Fargo

N o rth Dakota A n n u a l M eetings
LL officers were re-elected and few
changes occurred in the board of di
rectors of two Valley City banking insti
tutions at their annual meeting.
Officers of the First National Bank con
tinue with A. G. Bjerken, Minneapolis,
president ; Erie L. Fouks, vice president ;
T. H. Jeffery, cashier, and J. M. Connors,
assistant cashier. The new board of di
rectors includes : A. G. Bjerken, Erie L.
Fouks, James Grady, John B. Gray, T.
J. Jeffery, E. C. Hilborn, Bert Stern,
John H. Marshall, Rudolph Giselius, E.
E. DeCosse and John Q. Wieland.
Henry E. Nelson was renamed president
o f the American National Bank & Trust
Company, with A. C. Thorkelson, vice
president and cashier ; Leonard Beal, vice
president, and Russell Haugen, assistant
cashier. Board members are H. W. Green,
Karl J. Olsen, J. E. Jones, Henry E. Nel
son, A. C. Thorkelson, A. P. Paulson, C.
N. McGillivray, C. H. Noltimier, William
Rohde, Emil Feldman and Frank Starke.

W ILSO N EVER and J. K. Clark,
president and cashier, respectively, of the
First National Bank of Lemmon since
its establishment, have been retired by
the First Bank Stock Corporation o f Min
neapolis, owners o f the institution. Fred
L. Lewis, for the past two years executive
vice president of the bank, has been named
to the presidency to succeed Mr. Eyer.
H. R. Rendahl has taken Mr. Clark’s place
as cashier and a member of the board of
directors.
STOCKH O LD ERS o f the First Na
tional Bank of Cando, affiliated with the
First Bank Stock Corporation, held their
annual meeting January 10th, at the o f
fices of the bank. Five directors were
chosen at this annual meeting and the
following were elected to serve in that
capacity fo r the ensuing year: C. J. Lord,
Alex Currie, Harry Lord, T. S. Harkison
and C. L. Harris.
At the close of the stockholders meet
ing the newly elected directors held their
meeting fo r the purpose of organization,
and elected the following officers: C. J.

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Lord, president ; Harry Lord, vice presi
dent; T. S. Harkison, cashier; C. L.
Harris, assistant cashier; H. M. Schaffer,
assistant cashier.
AT THE ANNUAL meeting of the
stockholders of the Union National Bank
& Trust Company, Minot, the directors
were re-elected as follow s:
Frank T.
Merrill, C. H. Zehringer, J. N. Ellison,
John Ehr, E. A. Shirley, Andrew Balerud
and G. D. Colcord. John Ehr was re
elected chairman of the board.
Officers o f the bank were all re-elected
as follow s: Frank T. Merrill, president;
C. H. Zehringer, vice president; H. L.
Thorndal, cashier; R. S. Loberg, assistant
cashier; C. H. Zehringer, trust officer, and
Miss Lucile Cunningham, assistant trust
officer.
DR. A. D. McCANNEL and Henry E.
Byorum were elected vice presidents of
the First National Bank & Trust Company
o f Minot.
Walter E. Tooley, assistant cashier
since 1913, was named director and cash
ier, to succeed Henry E. Byorum who had
held that position since 1914, having suc
ceeded to that position when Robert E.
Barron was named president.
Other officers elected are R. E. Barron,
president; H. E. Dahl, Charles F. Ander
son and A. J. Brunner, assistant cashiers.
Mr. Dahl is also trust officer.

W ith

R. F. C .

J. L. Bell, vice president of the First
National Bank, Bismarck, for many years,
recently announced that he had severed
his connections with that institution.
Though his plans for the future are
not yet fully shaped, he announced he
probably would become affiliated with the
Regional Credit Corporation of Minneap
olis in the near future.
During his many years of residence in
Bismarck, Bell has served as treasurer of
many organizations, including the Red
Cross, Association o f Commerce, and
Provident Life Insurance Company, was

a member o f the Masonic Lodge and has
been a civic and social leader in the city.
N. I. Roop was elected to succeed Bell
at the annual meeting of the board of
directors, following the annual meeting
of the stockholders.

Resigns
With the resignation o f C. F. Mudgett
as manager of the Bank of North Dakota
accepted by the industrial commission in
its first meeting since the new administra
tion took charge, no choice was made o f a
permanent successor.
The commission, members o f which are
Gov. William Langer, Attorney General
A. J. Gronna and Commissioner John
Husby, placed P. H. Butler in charge un
til a new manager is named.
Three Bank of North Dakota depart
ment heads and 22 other employes were
notified o f immediate dismissal. Depart
ment heads included G. Olgeirson of the
foreclosure division; C. S. Cass o f the
finance department, and A. L. Fosteson
of the collection department. Others dis
charged were mostly clerks.

News N otes
The Bank of Steele received its charter
and opened for business December 29,
1932.
This bank assumed the deposit
liabilities o f the First National Bank of
Steele, which discontinued business and
went into voluntary liquidation. The o f
ficers and directors of the new bank are
as follows : Directors, Alex Stern, P. W.
Clemens, R. L. Phelps, Martin Peterson,
H. H. Graveseth, E. D. Bower and W ill
iam Stern. Officers, president, Alex Stern;
vice president, P. W. Clemens; vice presi
dent, H. H. Graveseth, and cashier, H.
W . George.
H. R. R EN D AH L has resigned as a
director and cashier of the Northwestern
Bank o f Langdon and has accepted a po
sition with the First National Bank of
Lemmon, South Dakota.
THE E LK V A L L E Y State Bank, Larimore, has reduced the number of its
directors from five to three.
JOHN P O W E RS has been elected a
director o f the Havana State Bank, Ha
vana, succeeding C. E. Castle Avho has re
signed.
HELEN K R IE S E L has accepted a
position as bookkeeper of the Havana
State Bank.
THE SE C R E T A R Y of State has issued
certificates increasing the capital stock o f
the Sterling State Bank from $12,500 to
$15,000, and renewing the term of its cor
porate existence for a period of twentyfive years.
N orthw estern Banker

F ebruary 1933

Brief News from Iowa Banks
B y J. A. SARAZEN
F ield R e p o r te r

July, 1932, the bank borrowed $45,000
from the Ii. F. C. so that the patrons
might be accommodated with legitimate
loans. This loan o f $45,000 had been re
duced on December 31st to $21,214 with
out injury or hardship to the borrower.

D.
A. M EEK S, manager of Armor &
THE ANNUAL M EETING of the
Co., Denison, was elected to the board of
directors of the Commercial State Bank stockholders of the First National Bank,
at the annual meeting. The following di Denison, was recently held, at which time
all the old directors were re-elected as
rectors were re-elected: J. W . Miller, Jr.,
J. J. Miller, Frank Hoffman and L. C. follow s: Charles Bollen, B. Brodersen,
P. J. Farrellv, N. W . Inghram, William
Thiedeman.
Adams, W . D. Mundt and W . A. GlotM ISS BARD W IL L IA M S , serving as felty.
The directors expressed themselves as
vice president of the First National Bank,
well pleased with the management o f the
Stuart, and in the hardware business for
the last 22 years, was elected president bank, and with the volume of business
of the bank at the annual meeting held done during the year 1932.
January 10th. She succeeds Walter I.
C. F. CAD W ELL, wTho vTas cashier of
Haynes, who asked not to be re-elected
THE TW O B AN K S at Charter Oak as his many other interests occupy all the First National Bank, Elliott, for the
past 23 years, has been elected cashier of
are running neck and neck in deposits, his attention.
Frank Eckard, also in the hardware the Dunlap Savings Bank. He succeeds
according to their statements of Decem
ber 31, 1932. The Farmers State Bank business, and who has been serving the H. W . Van Horn.
lists total deposits of $277,043.56, and the bank as a director, was elected vice presi
THE CARROLL County Bankers As
First National Bank lists total deposits dent.
Jacob Blackman, one of Adair coun sociation held its annual dinner meeting
of $277,622.55.
ty’s most stable farmers, was elected to January 11th, at Glidden. R. M. Moehn,
N.
J. BOLSER, vice president of the the board of directors. However, he was president o f the Commercial Savings
American Trust & Savings Bank, Le Mars, formerly connected with the bank as exec Bank, Carroll, was re-elected president of
was elected a director o f the Farmers utive vice president, director, and in other the association. George J. Hess, cashier
of the Carroll County State Bank, CarSavings Bank, Struble. He succeeds W . capacities fo r the last 35 years.
According to C. L. Beech, cashier, the roll, was re-elected secretary. Other o f
H. Deegan, who passed away some time
bank came through 1932 in fine shape. In ficers re-elected were E. D. Sutherland,
ago.
Manning, vice president, and R. W .
Porter, Glidden, treasurer.
Following the dinner, served by the
ladies o f the Glidden Auxiliary, R. M.
Moehn introduced Bob Garst o f Coon
Rapids, who gave a splendid talk on the
monetary system o f the country, explain
ing the theory advocated by Henry W al
lace, o f the Iowa Homestead, who was
This month we celebrate the
slated to address the meeting but was un
birthdays of two great Am eri
able to be present.
cans— George Washington and
H. E. Qualheim, president of the Craw
ford County Trust & Savings Bank, Den
Abraham Lincoln. They were
ison, gave a short talk discussing’ the va
leaders at two very critical times
rious methods o f revising our present
in the affairs of our nation.
system o f exchange and the problems con
fronting borrowers and lenders. Other
The Security National Bank’s
members of the association also gave
leadership is based on its con
short talks.
stant desire to render any serv
O F F IC E R S
ice, however small, which will
THEODORE R O H W E R, president of
Leonard R. M anley...........................President
be helpful to the banks and
C. R. Gossett...........................Vice President
the Farmers State Bank, Schleswig, can
R. Earl B ro w n ........................................Cashier
bankers who may use its facil
be congratulated fo r the fine showing
Delko B loom .................. Ass’t Vice President
made in liquidating his loans between the
Albert C. Eck e rt.........................Ass’t Cashier
ities.
Daniel B. Severson.....................Ass’t Cashier
calls of September 30, 1932, and Decem
Elm er O. Sm eby.........................Ass’t Cashier
ber 31, 1932. The bank’s statement of
September 30th listed deposits o f $565,000 and loans and discounts o f $707,000
and bills payable o f $203,000.
The more recent statement of Decem
ber 31st, lists deposits o f $545,527, loans
and discounts of $421,650, and no bills
payable. The cash position o f the bank
has been strengthened considerably be
tween these two calls and what has been
▼ V T W V '
(Turn to page 51, Please)

ISIT E D C. C. Jacobsen, formerly
president o f the Iowa Bankers A s
sociation, a few days ag'o and found him
very busy in his work as vice president
and manager of the Regional Agricultural
Credit Corporation of Sioux City. There
are about 115 employes in the office in
addition to approximately 150 fieldmen on
the road. Mr. Jacobsen said there have
been 1,084 loans closed to date by the
Sioux City office, and this new money has
had a very beneficial effect in the differ
ent communities where it has been dis
bursed.

LEADERS

CECURm
/
NATIONAL B A N K

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Federal Reserve Bank of St. Louis

of Sioux City

F ebruary 1933

45
STOCKHOLDERS o f the Washing
ton State and Washington National
Banks held their annual meetings, the
principal items o f business being the
election o f directors for the new year.
A t both meetings a spirit o f optimism
prevailed, the stockholders being pleased
with the conditions o f the two institu
tions, as shoAvn by the recently published
official statements o f the banks and re
peated in reports made at the meetings.

Iowa
Bank News
Officers Iowa Bankers
Association
President....................... Fred J. Figge
Ossian

FRED J. FIGGE
President

Vice President. . . . Robt. W. Turner
Council Bluffs
Treasurer..................... B. D. Helscher
Sigourney
Secretary......................................FrankWarner
Des Moines

FRANK WARNER
Secretary

Iowa A n n u a I M eetings
P. T. GRIMES was re-elected president
o f the Davis County Savings Bank at the
directors’ meeting follow ing the annual
meeting o f the stockholders.
All stockholders o f the bank were pres
ent or represented at the meeting, except
two who were ill. The present board was
re-elected, with one new director, C. E.
Fortune, chosen to fill the vacancy caused
by the death o f Frank C. Young, former
vice president o f the bank.
The new board o f directors re-elected
the officers who have served in their re
spective positions the past year, the only
change in the official personnel being the
election o f B. B. Burchett to the vice
presidency o f the bank to succeed the late
Frank C. Young.
THE DIRECTORS o f the Farmers
Savings Bank o f Williamsburg have
elected C. J. Simmons as president to
fill the place made vacant by the death
o f W. G. Fletcher, who had been presi
dent o f that institution. The new presi
dent has been cashier o f the bank fo r
many years and his services in the insti
tution run back about forty years.
Mr. O. E. Jones who has been con
nected with the bank fo r the past 28
years, has been elected as cashier. He
was also elected as a director to take the
place made vacant by the death o f J. H.
Hughes.
J. 0. LOY was elected president o f the
P eople’s State Bank o f Batavia at the
annual meeting o f the directors. He suc
ceeds Harry W ilhoit, who resigned a few
weeks ago. L. A. Peebler was chosen
vice president, replacing Mr. Loy. J. P.
Starr o f Fairfield and John F. Stull and
Ross L. Parrett are the other directors.
All five men were re-elected.
THE FARM ERS SAVINGS B AN K o f
Halbur has been named by the new state
executive council as a state dopsitorv for
1933.
Naming the depositories was done on
motion o f state treasurer L. J. Wegman
at the first meeting o f the new council.

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THE STOCKHOLDERS o f the Teeds
Grove Savings Bank held their annual
meeting.
The follow ing directors were elected:
Henry Harmsen, Marvin Jargo, William
Jargo, Frank Grimm, Chris Mohr, W alter
Wessel and Carl Thomsen.
A fter the adjournment o f the stock
holders’ meeting the new board met and
elected the follow ing officers:
President, Frank Grimm; vice presi
dent, Henry Harmsen; cashier, John
Thomsen; assistant cashier, W ilbur Jackson.
STOCKHOLDERS o f the Farmers
Savings Bank held their annual meeting
and elected the follow ing officers:
President, W . F. Siegmund; vice presi
dent, John Jensen;
cashier, John
Dykema.
Directors: David Wagner,
Pete Olson, W altin Olson, W. F. Seigmund, John Jensen and George Raiber.
AT THE MEETING o f the new board
o f directors o f The Farmers National
Bank o f Garner, Chas. W ellik was elected
president, to succeed J. N. Sprole, re
signed.
The elevation o f Mr. W ellik to the
presidency o f the institution is a well
earned promotion for him. In July, 1918,
Mr. W ellik became associated with the
Farmers National Bank. A t that time
he Avas assigned the position o f assistant
cashier. Later he was elevated to the
cashiership, a position he has held for
eleven years.
AT THE M EETING o f the W ayland
Bank on January 10th, the same officers
as appointed temporarily when the bank
Avas organized were named fo r the coming
year: President, E. C. A llen; vice presi
dent, A. B. M agdefrau; cashier, C. L.
Graber; assistant cashier, Marie Imhoff;
board o f directors : J. R. McKirahan,
E. C. Allen, Otto Frey, John R. Wenger,
Jacob G. Roth, H. L. Kauffman, Frank
Eicher, Joe W. W ittrig and A. B. Mag
defrau.

THREE A DDITIO N AL directors Avere
elected to the board o f the City National
Bank, Clinton, at the annual meeting of
the stockholders. They are F. J. Ward,
W . H. Iten and R. E. Clizbe.
A t the meeting o f the directors, Avhich
followed, G. L. Curtis, who has been act
ing as president since the death o f the
late A. C. Smith, pending the selection
o f a permanent president, retired and
IV. A. Anderson, executive vice president
since September, 1930, Avas elected to the
presidency.
A t the directors’ meeting immediately
folloAving the stockholders’ meeting offi
cers were elected as folloAvs:

President, W. A. Anderson; vice presi
dents, Milo J. Gabriel, H. G. K r amer,
A. R. Thurn ; vice president and trust
officer, 0. P. P etty; cashier, J. H. Nissen;
assistant cashiers, M. E. McCrabb, Emil
Johannsen, H. M. Qlney and F. E. Con
over.
AT THE ANNUAL meeting o f stock
holders o f the Hardin County National
Bank, Eldora, Eastman W . Nuckolls was
chosen on the directorate to fill the va
cancy on the board since the death o f
Chas. Baskin. A ll other officers and di
rectors were re-elected: D. M. Moser,
president; H. H. Turner and James
Nuckolls, vice presidents; Eastman W.
Nuckolls, cashier; Parker S. Davis, chair
man o f the b oard ; C. McKeen Duren,
Harry B. Moser and officers and directors.
THE ANNLTAL meeting o f the stock
holders o f the Keokuk National Bank
Avas held last month, Avhen the following
directors AATere elected for the ensuing
year :
C. R. Joy, Thomas H. Joyce, J. A. Dun
lap, L. J. Montgomery, E. R. Cochrane,
B. B. Hobbs and Carl A. Weber.
The directors held their m eetin g w hen
officers Avere nam ed as fo llo w s :

President, J. A. Dunlap ; vice president
and cashier, E. R. Cochrane; assistant
cashiers, J. R. Baur and L. A. Whetstone.
THE V ALLE\ N ATION AL bank, Des
Moines, re-elected its officers and board
o f directors without a change. J. H.
CoAvnie is president.
Other officers a re : C. W . Enyart, exec
utive Adce president; C. O. Craig and
D. S. Chamberlain, vice presidents; C. T.
N orthw estern Banker

F ebruary 1933

46
Cole, .Jr., vice president and cashier, and
W . E. Barrett, assistant vice president.
Directors are R. A. Crawford, Mr. Enyart, Mr. Cownie, Mr. Cole, Mr. Chamberlain, Ed Amend, Ernest W . Brown, F. 0.
Green, A lfred Hammer, Rudolph W eitz
and John N. Hughes.
THE CENTRAL National Bank, Des
Moines, re-elected all its officers, headed
by Grant McPherrin, president; Leland
W indsor, vice president, and L. G. Fuller,
vice president and cashier.
Other officers are C. W . Oxborrow, as
sistant vice president and auditor; F. R.
Warden, assistant vice president; Em
mett E. Johns, F. R. Quiner, A. T. Donhowe and G. L. Nissly, assistant cashiers,
and I. L. W right, trust officer.

THE ANNUAL meeting o f the stock
holders o f the First National Bank o f
Oelwein was held in the banking rooms
with a good representation o f stockhold
ers present Avho were very much pleased
with the year’s results and unanimously
re-elected the board o f directors for the
ensuing year as fo llo w s: Thomas Smith,
C. B. Chambers, M. F. Gunderson, E. R.
O ’Brien, E. PI. Stoup, A. S. Harper, Rich
ard H. Smith and Geo. W . Falk.
STOCKHOLDERS o f the Farmers
Savings Bank at Hamlin held their an
nual meeting and re-elected officers and
directors as fo llo w s:
H. G. Rice, president; Hans J. Hansen,
vice president; Hans Hansen, cashier;
Anton Nelson, Nels Mortensen, P. K.
Petersen and Nels Rattenborg, directors.

The members o f the board o f directors
who were re-elected for another year
are E. H. Rich, 0 . M. Oleson, F. L.
Loomis, Donald Vincent, C. B. Smeltzer,
W . S. Merryman, W . L. Casteel, John
Haire and C. W. Gadd.
THE VAN CLEVE Savings Bank held
its yearly stockholders’ meeting last
month. Nearly 75 per cent o f the shares
were represented, more than at any pre
vious meeting.
The old board o f directors was unani
mously elected, including W . E. Preston,
F. W . Tigges, L. J. Nason, W . M. W ar
den, George Tigges, G. J. Amendt and
J. I). Waltemeyer.
O.
F. CHASE was elected president ;
Dr. I). H. Pelletier, vice president; E. P.
Tobias, cashier, and L. F. Grady, assist
ant cashier at the organization meeting
o f the board follow ing the annual meet
ing o f the New H artford Savings Bank.
The first three named, together with J. M.
Bergman and N. A. Olmstead, constitute
the board o f directors.

AT THE ANNUAL meeting o f the offi
cers and board o f directors o f the Peo
THE ANNUAI j meeting o f the First
ples Savings Bank, Cedar Rapids, Frank
National Bank o f Colfax was held last
C. Welch was elected president, to suc month at the bank building in Colfax.
ceed John Burianek, Jr. Mr. Welch has
No changes in the officers or director
been associated with the Peoples Savings
ship was made, the same officers being re
Bank for twenty-eight years, having be elected to serve during the coming year
gun his duties there as messenger boy in
o f 1933, which are as follow s:
July o f 1905. He was associated with
Dr. F. E. Boyd, president; F. M. Gagle,
H. N. HALVORSON was re-elected
Mr. Burianek during this entire period.
vice president; H. E. Bell, cashier; R. E.
president o f the First National Bank,
Cummings and J. H. Cairns, assistant
Clear Lake, at its annual meeting last
cashiers.
F R A N K VON SCHRADER, chairman
month.
o f the board o f the Union Bank & Trust
All other officers and directors were re
Company, Ottumwa, was elected presi
elected also.
ALL OFFICERS and members o f the
dent at the bank’s annual stockholders’
board o f directors were re-elected at
meeting, and the offices o f chairman of
D.
M. ANDERSON, form er judge o f
the annual meeting o f the First State
the board and president were consoli
the district court, was chosen chairman
Bank and Trust Company o f Fort Dodge.
dated. Mr. Von Schrader, who is now
F.
I j . Loomis was re-elected president o f the board o f directors o f the First
both chairman o f the board and president
Iowa State Bank o f Albia. Mr. Ander
and the other officers a re : O. M. Oleson,
o f the bank, succeeds in the presidency
son succeeds D. W . Bates o f Des Moines,
C. W. Gadd and C. D. Case vice presi
Cyrus K. Blake, resigned. Mr. Blake
Iowa. A. J. Roberts was re-elected presi
dents ; J. Floyd Rich, cashier, and E. H.
continues as a director o f the bank.
dent; H. J. Moore, vice president; Roy
Moore, assistant cashier.
A lford, cashier, and John Griffin, assist
ant cashier.

BOVE are cattle going to market at
Schleswig, Iowa.
The territory
around Schleswig is one of the greatest
feeder districts in the state. On the first
o f December 48 carloads o f fat cattle were
shipped out in one day. According to
Theo. Rohwer, president o f The Farmers

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Federal Reserve Bank of St. Louis

F ebruary 1933

State Bank, Schleswig, Iowa, it is not un
usual to ship 25 carloads o f cattle per week
out of Schleswig during the shipping
season. Buyers often go to Colorado and
ship back cattle fo r feeder purposes. Most
of them are Herefords.

OFFICERS AND directors for the
three banks o f Creston were elected at
the annual meetings. They a re: Farmers
and Merchants Bank, E. N. Dougherty,
president; W . W . Burns, vice president;
A. W. Nichols, cashier, and John F.
W ard, assistant cashier. Board members :
Mr. Dougherty, Mr. Burns, W. J. Colbert,
Evelyn W ebb and R. C. Thomson.
Iowa State Savings Bank— D. Daven
port, chairman o f b oa rd ; George J. Bartie, president; R. K. Meadows, cashier,
and Ernest Porter, assistant cashier.
Board members: Mr. Davenport, Scott
Armstrong, J. E. Deitrick, W . C. Tramp,
George J. Bartle and Kenneth H. Daven
port.
First National Bank— Directors, Frank
A. Ide, chairman; H. F. Harsh, W ill
Reeknor, Bert Tallman, N. I. Menzer,
George Newcomb, J. M. W ray, F. D. Ickis,
J. D. Spaulding, Dave Kelly and A. E.
Jensen.
C. C. SH E AK LE Y, M. F. Condon, Matt
Kennedy, A. 0. Natvig and J. F. Kennedy

47
last week were re-elected directors o f the
First National Bank o f New Hampton.
Mr. Sheaklev is president ; Mr. Condon,
vice president; J. F. Kennedy, cashier;
A. C. Klatt and W . J. Kennedy, assist
ant cashiers, and Miss Marcella Craw
ford, bookkeeper.
W IL L IA M MEE, JR., o f Oklahoma
City, Oklahoma, a nephew, was elected
president and a director o f the First
National Bank o f Gladbrook, to succeed
the late Martin Mee, at the annual meet
ing o f the stockholders. The new presi
dent is to be the active head o f the bank.
He is now at Gladbrook and will remain
indefinitely.

A. R. Tracy; cashier, R. E. Shoemaker;
directors, Chas. E. Carey, F. E. Crandall,
E. E. Jones, Jr., L. A. Schwinn and N. N.
Turner.
THE STOCKHOLDERS o f the Early
Savings Bank held their anual meeting
with an unusually large number present.
The officers o f the bank remain the same
as heretofore. Ray Stevens was elected
as a director to fill the vacancy caused by
the death o f Frank Struchen.
J. W A LT E R HELSCHER has been
elected president o f the Farmers Savings
Bank, Keota, succeeding the late George
Stevenson, and his place on the board has

been filled by election o f W alter R. Stoutman as director. W illiam A. Stputner
was elected vice president; Walter Stoutman, cashier, and Mrs. Helen Stoutner,
assistant cashier. The directors include :
Messrs. Helscher, Stoutner and W. S.
Helscher and Charles McCampbell.
ELECTION OF Palmer C. Toy o f
Storm Lake, Iowa, a brother o f James F.
Toy, as president featured the annual
meeting o f the Toy National Bank, Sioux
City. He will fill the vacancy caused by
the death last March o f Carleton B. Toy.
The new bank president, who for many
years was president o f the Commecrial
Trust and Savings Bank, has been retired

THE ANNU AL meeting o f the New
Vienna Savings Bank was held at the
bank building, New Vienna, on W ednes
day, January 4th, at which time the fo l
lowing officers were elected for the ensu
ing y ea r:
President, Ferd Freking; vice presi
dent, Joseph W essels; cashier, E. K.
Smith; assistant cashier, John Froning.
Directors: Ferd Freking, Joseph W es
sels, Frank Wilgenbusch, W illiam Riesberg, Henry F. Klass, C. B. Vaske and
John Froning.
THE ANNU AL stockholders’ meeting
o f the Guthrie County State Bank was
held in Guthrie Center, January 9th.
Two hundred twelve shares o f stock were
represented at the meeting.
The board o f directors declared a 3
per cent dividend on the basis of the
earnings during the past year. These
checks, totaling $900, have been handed
out to the majority o f the shareholders.
The annual meeting re-elected the old
board for the ensuing year. Members in
clu d e: E. E. France, H. E. Ellett, W alter
Hartman, Cary Headlee, Wilmer Sheeder,
T. E. Daugherty and G. M. Barnett.
TWO ADDITIONS to boards o f direc
tors o f Red Oak banks were made at the
recent annual elections when F. E. Bil
lings was added to the board at the First
National Bank and 0 . R. Byers was
named assistant cashier o f the Red Oak
National Bank.
Officers o f the First National include
the follow ing: President, Chas. T.
Schenck; vice president, F. S. Schadel;
cashier, F. R. Iddings; W . J. Roberts,
cashier; directors, T. J. Hysham and
F. E. Billings.
Officers o f the Red Oak National in
clude : President, William Cochrane; vice
president, Chas. E. Carey; vice president,
R. C. Brogmus; cashier, F. E. Crandall;
assistant cashier, 0 . R. Byers; directors:
Chas. Miller, E. E. Jones, Jr., Chas. A.
Reese, Norman N. Turner and A. R.
Tracy.
Officers at the Red Oak Trust include:
President, Wm. Cochrane; vice president,

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Federal Reserve Bank of St. Louis

(jO G D
B A N K IN G rests on time-tried, bed
rock principles. Yet when conditions are unusual,
it is short-sighted to blindly follow usual pro
cedure. Only by viewing today’s problems in the
light of today’s conditions can we be of utmost
service to you.

Bankers T rustC o .Ba n k
CORNER 6th A N D LOCUST STS., DES MOINES
CAPITAL $1,000,000

SURPLUS $200,000

D I R E C T O R S ------------------------------------ L. B. BARTHOLOMEW
V ic e P res.-T ru st O fficer
PAUL BEER
P resid en t. T h e
F lynn D a iry Co.
I)R. 0 . J. FAY
Surgeon
HENRY FRANKEL
T reas., Y ou nker B ros.
J. G. GAMBLE
A tto rn ey

J. W. HOWELL
V ic e P resid en t, W a rû eld -P ra tt-H o w ell Co.
F. W. HUBBELL
V ic e P res. - T reas.,
E q u ita b le L ife Ins.
C om pany o f Iow a
J. W. HUBBELL
V ic e P resid en t, F . M .
H u b b ell Son & Co.

F. KAUFFMAN
P resid en t
B. MAYTAG
C apitalist
L. SHEUERMAN
P resid en t, Sheuerm an
B roth ers, In c.
B. VORSE
V ic e P resid en t

N orthw estern Banker

F ebruary 1933

48
fo r several years. He makes his home in
Los Angeles, California, and plans to
remain there for the present.
A ll officers and directors were re
elected at the First National Bank. They
are: A. S. Hanford, Sr., president; Fred
erick R. Jones, vice president; Fritz
Fritzson, cashier, and W . J. Bertke, W . J.
Downey, Mr. Fritzson, Mr. Hanford, Mr.
Jones, J. W . Porterfield, David W . Stew
art, C. M. Stilwell and John H. Kelly,
directors.
Present officers o f the Live Stock Na

tional Bank, Sioux City, were re-elected.
They are: A. G. Sam, president; C. L.
Fredericksen, vice president; M. A. W il
son, cashier, and W . G. Nelson and W . C.
Schenk, assistant cashiers.
Directors o f the Live Stock National
Bank are T. J. Dee, Mr. Fredericksen,
Alex Highland, Mr. Sam and Mr. Wilson.
AT A MEETING o f the stockholders
o f the Citizens State Bank, Griswold, new
officers and directors were named fo r the
coming year. Byron Kewin, L. A. Cock-

Guaranty Trust Company
of New York
140 Broadway
LONDON

PARIS

BRUSSELS

LIVERPOOL

HAVRE

ANTWERP

Condensed Statement, December 31, 1932
RESOURCES
Cash on Hand, in Federal Reserve Bank,
and due from Banks and Bankers_______ $
U. S. Government Bonds and Certificates-_
Public Secu rities____________________
Stock of the Federal Reserve Bank__________
Other Securities_______________________________
Loans and Bills Purchased____________________
Real Estate Bonds and M ortgages____________
Items in Transit with Foreign Branches______
Credits Granted on Acceptances______________
Bank Buildings _______________________________
Accrued Interest and Accounts Receivable___

197,891,874.27
527,071,010.31
79,865,101.22
7,800,000.00
24,953,391.87
456,157,496.34
2,391,701.10
7,972,124.51
85,988,777.36
14,322,480.02
6,393,017.22

$ 1,410,786,974.22
LIABILITIES
C a p ita l_____________________ $ 90,000,000.00
Surplus F u n d _____ . ________ 170,000,000.00
Undivided P ro fits__________
11,233,494.33
$
Accrued Interest, Miscellaneous Accounts
Payable, Reserve for Taxes, etc---------------Acceptances --------------------------------------------------Liability as Endorser on Acceptances and
Foreign B i l l s ______________________________
Agreements to Repurchase Securities Sold__
Deposits __________________ $1,018,967,670.00
Outstanding C h e c k s ____
19,810,547.54

N orthw estern Banker

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Federal Reserve Bank of St. Louis

271,233,494.33

6,512,828.82
85,968,777.36
139,165.00
8,154,491.17
1,038,778,217.54
$1,410,786,974.22

F ebruary 1933

lin and U. G. Rogers were named as new
directors. Following the election o f di
rectors the naming o f officers to preside
over the affairs o f the bank for the com
ing year was taken up and L. A. Cocklin
was named as president, taking the place
o f J. H. Alexander, who for thirty-four
years has presided as president. E. E.
Horn was named as vice president and
Dan Epplesheimer as cashier.
W IL L IA M J. HOLLANDER, retired
druggist, was again elected president of
the Sheldon National Bank at the meet
ing o f the directors following the stock
holders ’ meeting.
Other officers a re:
W. P. Iverson, vice president and cash
ier; E. B. Myers and Fred J. Pylman,
assistant cashiers.
The anual meeting o f the directors o f
the Security State Bank o f Sheldon took
place last month. Stockholders elected
the same directors fo r the coming year
and the same officials were re-elected.
The bank board o f the Security State
Bank o f Sheldon consists o f the follow
ing members: G. P. Schneider, C. L.
Schneider, O. J. Fi’ey, G. J. E l’erbroek,
M. Mulder, G. P. Kersten and L. A.
Struyk.
J. R. M ITCHELL was re-elected chair
man o f the board o f the Manly State
Bank. H. A. 0 ’Leary o f Mason City,
who represents the McNider stock inter
ests in the bank, was elected president;
Dr. S. S. W estlv and Rav Field were re
elected vice presidents, and C. S. Rye was
re-elected cashier. Fred Zarbrock and
H. D. Backhaus were returned to their
old positions on the board o f directors.
N. E. K E L LE Y o f Altoona has been
named as cashier o f the Cambridge State
Bank,»at a recent meeting o f the board of
directors o f that institution. He will suc
ceed H. H. Lexvold, who has acted as
cashier fo r the five years since the bank
organized. Mr. Lexvold suffered a severe
case o f blood poisoning and his health
does not permit him to continue the ardu
ous duties o f cashier.
JOHN SIEH, an active official in the
Farmers Trust and Savings Bank of
Spencer since its establishment in 1916
and vice president fo r the past five years,
resigned that office recently at the annual
stockholders’ meeting.
Mr. Sieh has been in ill health for
some time and his quitting active partici
pation in the banking business, at least
fo r a time, was on advice o f his physi
cians. He is retaining his stock holdings
and will continue as a member o f the
board o f directors o f the institution.
COL. HANFORD M cNIDER was re
elected chairman o f the board o f direc
tors at the annual business meeting of
the First National Bank o f Mason City.

49
Other officers re-elected include: W . G.
C. Bagley, president; C. A. Parker and
R. P. Smith, vice presidents; P. C. Heneman, assistant vice president, and H. V.
Bull, cashier.
THE ANNU AL meeting o f the stock
holders o f the Grinnell State Bank was
held last month. Mrs. Louise M. Henely
was chairman and cashier. J. E. Bach
was made secretary.
The new directors elected fo r this year
were: John S. Nollen, John Evans, A. J.
Blakely, Dr. E. P. Talbott, Raymond P il
grim, Prank Matteson, J. E. Bach, C. A.
Blair and C. S. George.

There was almost a full representation
o f stockholders present at the City Trust
and Savings Bank meeting. A fter rou
tine business was disposed of, reports o f
various officers were taken up with dis
cussion following.
The stockholders
elected nine directors fo r 1933 as follows :
C. E. Rice, C. H. Crooks, F. M. Ballou,
John L. Goeppinger, W . R. Dyer, H. G.
Rice, John H. Goeppinger, Mrs. Kather
ine Stanger and R. T. Duckworth.
Stockholders o f the Boone State Bank
met at the bank for the yearly session to
elect directors, hear reports and discuss
matters pertaining to the bank’s busi
ness. Officers and directors were named

fo r this year as follow s: President, T. L.
A sh fo rd ; vice president, B. P. H olst;
cashier, R. J. Meyers.
D irectors: T. L. Ashford, B. P. Holst,
Prank Hollingsworth, John Cooper, H. E.
Pry, F. H. Johnson and Bertram P.
Holst.

Dies in Des M oines
George E. Pearsall, 82, prominent in
Iowa banking circles for a half century
and a vice president and director of the
Iowa-Des Moines National Bank and
Trust Company, died at his home last
month.

AT THE ANNU AL meeting o f the
stockholders o f the Burt Savings Bank,
held January 10th, the report o f business
showed a 10 per cent net profit for the
year.
The officers remain as b e fo r e : W . T.
Petes, president; P. E. Rubey, executive
vice president, and J. T. Heaney, cashier.

T W E N TY years o f continuous service
in the employ o f the P eople’s National
Bank and P eople’ s Savings Bank of
Albia will be observed February 1st by
Earl W . Baxter, cashier.
Ten months ago, in April, 1932, J. A.
Canning, president, also observed twenty
years o f service with the banks.

i ! CENTRAL NATI0NJÈ

THE ANNUAL meeting o f the stock
holders o f the Farmers State Savings
Bank o f Independence was held January
10th. The same officers and directors
were re-elected fo r the ensuing year.
They are as follow s: President, Chas. C.
M eythaler; vice president, W ill Blank;
cashier, E. P. Sorg; assistant cashiers,
C. L. Fiester and P. E. Sorg; bookkeeper,
Miss Alverna Sullivan; stenographer,
Miss Henen O ’Biell.
The directors a re : Chas. C. Meythaler,
W ill Blank, Albert Israel, Dr. B. B. Sells,
W . E. Glenny, P. A. Kirsch and E. F.
Sorg.
The report o f the condition o f the
bank as o f call on December 31, 1932,
shows a total o f $153,184 cash on hand
and due from banks; $65,400 o f U. S.
government bonds, and $152,000 o f mu
nicipal and other bonds and securities.
This makes a total o f $370,584 assets
which can be liquidated almost imme
diately. During the past six months the
deposits have increased over $100,000.
The bank has a capital o f $50,000 and
surplus and undivided profits o f $19,476.
AT THE F IRST National Bank stock
holders’ meeting in Boone, C. C. Quinn
retired from the presidency o f the bank.
He is being succeeded as president by
J. H. Herman and other officers include :
W . H. Crooks, vice president ; P. P. M c
Donald, cashier; H. R. Eaton and J. E.
Carlson, assistant cashiers.

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Federal Reserve Bank of St. Louis

7 B A N K
l AH# TRUST COMPAQ

~~-----

Ihrouqh this door
~
Y o u 'll F in d G o o d Banking Service
a n d a F r ie n d ly W elcom e

Central
National ban k
iS 2 TRUST C O M P A N Y
FIFTH AVE. - B e tw e e n
WALNUT and L OC U S T
DES M O I N E S ----------------------------------------------------I O W A

li_______

N orthw estern Banker

F ebruary 1933

50
He had been seriously ill with influ
enza.
Mr. Pearsall’s death came on his
eighty-second birthday, on the fifty-first
anniversary o f his marriage, and just 40
years after coming to Des Moines. Mrs.
Pearsall preceded him in death in 1923.

M r. Toy C e le b ra te s
James F. Toy o f Sioux City, the well
known veteran o f northwest Iowa bank
ing circles, and president o f the First
National Bank o f that place, Avas 83 years
old on January 5th. Mr. Toy quietly ob
served the 83rd milestone o f his life by
giving his attention to business matters
in connection Avith the Toy National Bank

N orthw estern Hanker

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Federal Reserve Bank of St. Louis

and the Farmers Loan and Timst Com
pany o f Avhich he is the head.

C u t Interest Rate
The Rippey Sa\Tings Bank o f Rippey
has decided to cut the rate o f interest on
time deposits from 4 per cent to 3 per
cent, Avhile the interest rate on loans
Avas changed from 8 per cent to TYz per
cent.

For the past fe A V months Mr. Hutchin
son has been assistant manager o f the
Regional Agricultural Credit Corpora
tion at Sioux City. He was induced to
leave that position only in A7iew o f this
present offer which Avili be a fine pro
motion.
Mr. Hutchinson is the son-in-laAv o f
Mr. and Mrs. Fred F. Figge o f Ossian,
IoAva.

W ith D a v e n p o rt Bank

W ith R. F. C .

J. M. Hutchinson, director o f the IoAva
State Bank o f Calmar, has been named
head o f the trust department o f the new
Davenport Bank and Trust Company at
Davenport.

A fter being connected with the First
National Bank o f Sumner, Iowa, for 24
years, Elmer Mohling, assistant cashier,
resigned his position to accept a position
with the Reconstruction Finance Corpo
ration. Mr. Mohling assumes the duties
o f his neAV position at once.
The offer came to Mr. Mohling from
the Chicago office o f the corporation.

Resigns
Guy C. Martin has resigned from his
position as cashier o f the Farm ers’ State
Bank o f Malvern, to take effect February
15th, and with his family will establish a
residence elseAvhere. His successor has
as yet not been elected but several appli
cants are on the Avaiting list. The per
sonnel o f the board o f directors remains
unchanged.

N am ed C ashier
G.
L. Dickinson, form erly o f Kellerton,
but who has recently been conducting a
cafe in Stansberry, Missouri, has been
elected cashier o f the Beaconsfield bank,
to fill the vacancy caused by the sudden
death of L. R. Beadle. He has had pre
vious experience, having been assistant
cashier o f the Kellerton State Bank for
about tAventy years.

Foreclosures S to p p e d
L. A. AndreAv, state superintendent o f
banking, announced recently that the re
ceivers o f the closed state banks in IoAva
have been notified to hold no more farm
real estate or chattel mortgage foreclos
ure sales, and to postpone those sales
which already have been scheduled.
This order is to pre\Tail, Mr. Andrews
stated, until real estate and chattel prices
are higher.
He further stated that that order does
not apply to cases in which holders o f
second mortgages foreclose on debtors, or
in which property securing the mortgage
is being dissipated.
Mr. Andrew further stated that it has
been the policy o f the banking depart
ment and the receivers o f closed banks to
effect settlements Avith Iowa farm debt
ors in preference to foreclosure sales,
and that feAV public foreclosure sales
have been held.
F ebruary 1933

N ew Shrine
Treasurer
Leonard R. Manley, president o f the
Security National Bank of Sioux City,
Iowa, has recently been elected treasurer
o f Abu Bekr Shrine in Sioux City. Mr.
Manley has been active in Masonic work
for many years.
Under the able direction o f Mr. Manley,
the Security National Bank finds itself in

IN N E W QUARTERS
To

The
W a te rlo o
S a v in g s
Bank

M A IN T A IN our past record of service, and to facili

tate the handling of our increased business, we are now
located in new and larger quarters.

W e invite new

business in all departments of banking— from banks,
corporations, firms and individuals.

S t R IC T adherence to the sound, constructive policies
which have been a part of this institution for the past
thirty years assure you of the efficient service you want in
a W aterloo correspondent.

L. R. MANLEY

a most comfortable position at the close
o f 1932. With around a million in short
term securities, another million in govern
ment bonds, and about a million and a
quarter in cash and due from banks, the
resources o f the institution are in a highly
liquid form.
According to its last statement, the Se
curity National shows deposits of $4,444,665, and total resources of $5,252,829.

B rief News
From Iowa Banks
(Continued from page 44)
accomplished in the way of liquidating
bills payable under present conditions is
most extraordinary. In commenting on
this fine showing, Mr. Rohwer said that
most o f these loans were made to respon
sible cattle feeders.
J. P. H ESS, president of the Carroll
County State Bank, Carroll, passed away
January 13th. He was 75 years old and
had been in the banking business for the
past 48 years.
Mr. Hess entered the
banking business in 1885 as cashier of the
Carroll County Bank which was a private
institution owned by the Patterson broth
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Federal Reserve Bank of St. Louis

The

W aterlo o Savings B a n k
IO W A

W ATERLOO

OFFICERS
J. E . Johnson, C h a ir m a n o f th e B o a r d
H . G . N orth e y, P r e s i d e n t
J. J. M ille r, C a s h ie r
R . W . W a ite , V i c e P r e s i d e n t
Francis R . L aB arre, A s s i s t a n t C a s h ie r
Carleton Sias, V i c e P r e s i d e n t
V . S p alding M ille r, A s s i s t a n t C a s h ie r

N orthw estern Banker

F ebruary 1933

B ankers' W a n ts
This department of The Northwest
ern Banker is free to subscribers.
To non-subscribers, a charge of five
cents per word. In answering key
numbers, please enclose postage for
forwarding purposes. And remem
ber, this service is free to subscribers.

For Sale— Eight-drawer steel check file,
Burroughs, late model transit machine,
Brandt cashier and latest Burroughs
model posting machine. Make a bid on
all or any part. Address the Northwest
ern Banker, 3205.
2-3.
Position Wanted— Young man, age 22,
two years general banking experience,
university
graduate
commerce
and
finance, single, willing to start at small
salary. Can furnish best of references.
Address the Northwestern Banker, 3203.
2-3-4.
Position Wanted— Young man, 28 years
old, married, of Protestant faith, member
of the Masonic Lodge and with eight
years experience as Assistant Cashier.
Capable of handling any position in a
bank. Can furnish the best of reference
as to ability and integrity. Address the
Northwestern Banker, 3204.
2-3-4.
For Sale— Two nests Invincible De
posit boxes of 30 boxes each. Size 4 % x
2% xl4. Nickel steel front. Will deliver
F.O.B. any Iowa town at $1.50 per box.
Security State Bank, Radcliffe, Iowa.
1-2-3.
For Sale— Short Method Rules for
measuring hay, corn, grain, coal and
other items. Prepared in Mimeograph
form. Will mail copy upon request and
receipt of 25 cents. Address J. P. Denger,
Cashier, Bank of Galt, Galt, Iowa. 3201.
12- 1- 2 .

LOUIS J. MUEHLE &
COMPANY
Certified Public Accountants
601-602 Securities B u ild in g
D E S M O IN E S , I O W A

MINNEAPOLIS
N orthw estern Ranker

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Federal Reserve Bank of St. Louis

Februaru 1933

ers. Three years later Mr. Hess and a
few friends purchased the Patterson
brothers’ shares in the bank, reorganized
the institution and renamed it the German
Bank o f Carroll County.
The same setup continued until Jan
uary 1, 1918, when a state charter was
granted the bank at which time it was
changed from a private institution to a
state bank and the name changed to the
Carroll County State Bank, which it is
known by today.
It was at this time Mr. Hess was elected
president and held this position contin
uously until his death, although he did
not take a very active part in the conduct
o f business since 1928, leaving most of
the responsibilities on the shoulders of
his two sons, George, cashier, and Carl
J., assistant cashier.
George Hess has been associated Avith
his father fo r the past 26 years and Carl
J. Hess has been with the bank for the
last 15 years.
The city o f Carroll and community and
many banking friends deeply regret the
passing of Mr. Hess.

United States government bonds $118,100,
cash and due from banks $96,700.
THE FAR M ER S Savings Bank, Dan
bury, is another new bank which was or
ganized a little more than a year ago and
is not paying interest on deposits. Their
statement of December 31st lists deposits
of $108,650 and total footings o f $141,660.
The statement lists loans, bonds and se
curities $70,500, cash $52,000, United
States Liberty bonds $19,141. C. F. Seibold, o f Sioux City, is president, and F.
W . Kemp, cashier.

SOME B AN K ER S think that banking
in the future Avill be run on an entirely
different basis than what it is today. For
instance, one banker that I recently talked
to said he thought that in the future peo
ple Avould pay the bank to keep their
money fo r them instead of the bank paying
the customer to leave his money. O f course,
some plan would have to be Avorked out
so the bank would be 100 per cent liquid
at all times.
More and more bankers are beginning
to
H.
W . M E YE RS Avas elected a director realize that it is difficult for a bank to
of the Manning Trust & Savings Bank at pay a high rate of interest and keep sol
the annual meeting held January 9th. He vent as they must invest their money in
succeeds Gus Yinke, deceased. All other long-time paper and higher yield, more
former directors and officers were re speculative issues to be able to make
money and pay the customer the higher
elected.
rate o f interest. There still are a good
number o f banks in the state paying 4
THE FAR M E R S State Bank, Merrill,
per cent interest and practically all of
lists in its statement o f December 31st,
them seem to feel that it is too much.
deposits o f $107,784.48, and total cash
HoAvever, the general attitude seems to be
assets o f $68,305.56.
“ don’t rock the boat, we can’t afford to
lose deposits.”
AT THE ANNUAL meeting o f the
Templeton SaA7ings Bank, Dr. Otis P.
IN CONVERSING Avith J. F. Johnston,
Morganthaler was elected a director and
president of J. F. Johnston’s Bank, St.
succeeds Engelbert Irlbeck.
Charles, a private bank, I was informed
THE ID A COUNTY State Bank, Ida that his bank has not paid any interest
Grove, o f which F. R. Jones o f Sioux City on deposits fo r the last five years. He
is president, sIioavs a very substantial Avas paying 4 per cent interest at that
groAvth fo r the short time it has been time and decided it would be better to
operating. The bank was organized eleven have far less in deposits and be able to
months ago and its statement o f Decem make some money on Avhat deposits he
had than to pay out so much in interest.
ber 31st, lists deposits o f $275,000 and
At the same time it Avas felt the bank
total footings o f $324,000. This bank
could then invest in lower yield, high
does not pay any interest on deposits
Avith the exception o f a few small ac grade investments. Deposits five years
ago Avere around $430,000 and their state
counts, which are mostly children’s ac
ment of December 31st speaks pretty Avell
counts. Loans and discounts are listed
fo r itself with deposits of $225,000, capital
at $62,000, state and municipal bonds
$50,000, surplus $35,000, no borrowed
$75,000, United States government bonds
$55,600, and cash on hand and sight ex money and no rediscounts. Resources are
loans and discounts $166,525, U. S. bonds
change $123,000.
$85,000, cash and exchange $58,634, over
drafts none and real estate none. The
THE H O LSTEIN State Bank, of Avhich
bank building and furniture and fixtures
Mr. Jones o f Sioux City is also president,
have been charged off.
has a very nice statement as o f December
31st. This bank Avas organized in 1931,
Mistress: “ Mary, Avhen you wait at
and lists deposits o f $441,000 and total
footings o f $504,000. Like the Ida County table tonight fo r my guests, please don’t
State Bank, no interest is paid on depos wear any jewelry.” ■
M aid: “ I have nothing valuable, ma’am,
its. Loans and discounts are $124,700,
but I thank you fo r the Avarning.”
state and municipal bonds $148,200,

change is an advantage to all concerned,
and consistent with good, conservative
banking.
The recent statement o f condition of
the Waterloo Savings Bank shows depos
its o f $1,949,753.97, and total resources
o f $2,128,335.76. State, county, and mu
nicipal bonds total $126,875.52; market
bonds, $98,389.95; U. S. bonds and treas
ury notes, $189,900; and cash on hand
and due from banks, $957,205.93, making
a total fo r this account o f $1,372,371.40,
which indicates that the Waterloo Savings
Bank is more than 70 per cent liquid.
The officers of the Waterloo Savings
Bank are as follows:
J. E. Johnson,
chairman of the board; H. G. Northey,
president; R. W . Waite, vice president;
Carleton Sias, vice president; J. J. Miller,
cashier; Francis R. LaBarre, assistant
cashier; Y. Spalding Miller, assistant
cashier.

W a te rlo o Savings
In N ew L o cation
Finding it necessary to obtain larger
quarters to transact its increased volume
of business, the Waterloo Savings Bank,
Waterloo, Iowa, last month moved into
the empty banking rooms o f the Pioneer
Building.
In addition to the banking
quarters, the lease also includes seventeen
hundred safety deposit boxes in the old

j . J. M I L L E R

found the better method would be to rent
the banking quarters in the Pioneer Build
ing which were designed and especially
equipped fo r banking purposes. A lease
on those quarters was obtained which did
not increase the overhead and conformed
to the larger volume of business which
the bank is now doing. It is felt the

R u lin g the W aves
A prominent judge, crossing the Irish
Channel on an extremely rough voyage,
noticed a lawyer friend who was suffering
from seasickness.
Judge: “ Can I help you in any way?”
Lawyer: “ Yes, please overrule this
motion.”

H. G. N O R T H E Y

Pioneer vaults, w'hich the Waterloo Sav
ings will take over and operate. Also, the
boxes in the building formerly occupied
by the hank will be available to patrons,
as before.

“Only $3 for all this?”
Y ou ’ll be surprised, too, when you see how
much luxury and convenience you can en
joy at the Hotel Lexington for as little as
$3 a day.
And here’s another fact that’ll make your
expense account beam with gratitude — it
costs only $1 a day more for two persons at
the Lexington. A room which is $3 for one,
for instance, is only $4 for two persons.

HO TFL JCeXINGTON
R. W . WAITE

In Grand Central Zone, Lexington Ave. at 48th Street

Originally the Waterloo Savings Bank
had made plans to enlarge and remodel its
old location. This would have meant con
siderable expense, however, and it was

CHARLES E. ROCH ESTER, G e n e r a l M a n a g e r

N E W Y O R K C IT Y

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

N orthw estern Banker

F ebruary 1933

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u b l is h e d

eP u y

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Com pany

555 S e v e n th S tre e t, D e s M o in e s

C L IF F O R D D E P U Y
Publisher
R. W . M O O R H E A D
A ssocia te Publisher
W M . H. M A A S
V ic e President

F R A N K P. S Y M S
V ice President

N O R TH DAKOTA

H. H. H A Y N E S
E ditor
F R A N K S. L E W I S
S pecial R epresentative

5 C | J T % I^ C O ^
C hicago O ffice: Wm. H. M aas, 1221 F irst N ational Bank B ld g ., Phone Central 3591
N ew York O ffice: Frank P. Sym s, 19 W e st 44th St., Phone M urray H ill 2-5036
M in n eap olis O ffice:
Frank S. L ew is, 218 E ssex B uildin g, Phone BR2523.

ÌO W A
N EB R A S K A
O fficial P u b lica tion of
T H E S O U T H D A K O T A B A N K E R S A S S O C IA T IO N
T H E IO W A FARM M O R T G A G E A S S O C IA T IO N
T H E IO W A IN V E S T M E N T B A N K E R S A S S O C IA T IO N

N orthw estern B anker

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

m rm ?ì\T M m ifìì\ì
F ebru a ry 1933

★

STATES served by

the Northwest Bancorporation
have a combined area about
equal to that o f G erm an y,
England, France and Spain.

Northwest Bancorporation
MINNEAPOLIS, MINNESOTA
BancNorthwest Company— Investment Securities

V-

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

COLLECTIONSA n I m p o r t a n t S e r v i c e to
Our Correspondent Banks

the United States.
speed collections.

Direct connections

Location eliminates delay. We are near
the geographical center of the territory in
which we serve correspon
dent banks, and 9 rail
collection
roads operate 19 lines in
another reason
and out of Des Moines.

Several contributing factors enable
Iowa's Largest Bank to provide fast, effi
cient collection service on
checks and other transit
# P rom pt
items.
First, we have many
direct hanking connec
tions in all sections of
Iowa, as well as in the
larger financial centers of

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

service is
why one out of every
three Iowa hanks car
ries its account with
Iow a ’ s Largest Bank.

Well trained personnel
with modern equipment
is geared to move transit
items quickly.

10WA-DES MOINES NATIONAL BANK
& T rust C o m p a n y
<JjffiliatecL loitiv

NORTHWEST BANCORPORATION