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FEBRUARY
1940

Black Water


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Federal Reserve Bank of St. Louis

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EQUIPPED TO SERVE!
T h rou gh the rare co m b in a tio n o f fa v o ra b le lo ca tio n , lo n g
e x p e r ie n c e anti an ex ten siv e co rresp o n d en t netw ork the
M erchants N ational B an k is able to ren d er ex cep tio n a l service
to b an k s th ro u g h o u t Iowa.
T o the m any banks already u sin g th is service, we p led ge
o u r co o p era tio n to m erit you r co n tin u ed p atron age. If you
are not u sin g M erchants N ational service, we in vite your
accou n t in Cedar R apids.

A CEDAR RAPIDS BANK

CEDAR
RAIMOS

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SERVICING ALL IOWA*

MERCHANTS

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NATIONAL BANK

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OFFICERS
J ames E. H am ilton , Chairman
S. E. COQUILLETTE, President
H. N. B oyson , Vice President
R oy C. F olsom , Vice President
Mark J. M yers , V. Pres. & Cashier
George F. M iller , V. Pres. & Tr. Officer
M arvin R. S elden , Vice President
F red W. S m it h , Vice President
J o h n T. H amilton II, Vice President
R. W. Man att , Asst. Cashier
L. W. B roulik , Asst. Cashier
P eter B ailey , Asst. Cashier
R. D. B rown , Asst. Cashier
0 . A. K earney , Asst. Cashier
S tanley J. M ohrbacher , Asst. Cashier
E. B. Zb a n e k , Building M anager

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Cedar Rapids
Member Federal

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Iowa

Insurance C©rf*ôiw4î»n

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N o r th w e ste r n B an k er, p u b lish e d m o n th ly b y th e D e P u y P u b lis h in g C om pan y, In c ., a t 555 7th S tr e e t, D e s M o in e s, Io w a .
S u b sc r ip tio n , 35c per cop y, $3.00 per y ear. E n tere d a s s e c o n d - c la s s m a tter at the D e s M o in e s p o st office. C o p y rig h t, 1940.


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Federal Reserve Bank of St. Louis

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(MIRAI NATIONAL

[COMPANY

BANK
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isuamHED t«‘)5

Where promptness and
efficiency are traditions
. . . where friendliness
is the rule.
Member Federal Deposit Insurance
Corporation


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

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4

Now! A Window-Plan Machine
Name

W.P.Stewart

Address 16505 W isco n sin Avenue

JAM 6 40 "
F£B 17 40
MAX 2 40
HAT 11 40
JUN 30 40
AUG 6 40
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OCT 7 /

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F I R S T N A T I O N A L B A NK
SU B R O U G H S V IL L E

in Aect With W.P. S t e w a r t
DATE

MEMO

WITHDRAWALS

JAM 6 4U '
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AUG 6

This low-priced w indow -plan m achine is one of the m ost
recent Burroughs developm ents. It posts any type of
p assbook, in c lu d in g sa v in g s, sm a ll lo a n s, C h ristm as
clubs, school savings and m ortgage loans.
Of course it provides such standard Burroughs features
as com pactness, speed, ease of operation, and the Bur­
roughs bank keyboard. And it is so m uch lower in price
than any other w indow -plan m ach ine th at any bank
m ay now have one at each savings window regardless of
fluctuating volum e and peak periods. Due to its flexi­
bility, it m ay also be used for any adding or subtracting
work in the bank.
For com plete inform ation, telephone your local Bur­
roughs office. Or, if more convenient, write direct to —
BURROUGHS ADDING MACHINE COMPANY
6994 SECOND BLVD., DETROIT, MICHIGAN

Burroughs

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Federal Reserve Bank of St. Louis

5

THE HOME
IN SU R A N C E COMPANY

NEW YORK
STATEMENT—DECEM BER 31, 1 9 3 9
DIRECTORS

LEWIS L. CLARKE
WILLIAM S. GRAY
CHARLES G. MEYER
WILLIAM L. DE BOST

ADMITTED ASSETS
Cash in Banks and Trust Companies . . . $ 15,295,880.95
United States Government B o n d s ...............
10,753,105.49
All other Bonds and S t o c k s ...........................
86,911,891.37
First Mortgage L o a n s......................................
300,000.00
Premiums uncollected, less than 90 days due
8,353,236.18
Reinsurance Recoverable on Paid Losses . .
1,021,060.43
Other Admitted A s s e t s ..................................
420,923.52

WILFRED KURTH

$123,056,097.94

EDWIN A. BAYLES
GORDON S. RENTSCHLER
ROBERT GOELET
HERBERT P. HOWELL
MORTIMER N. BUCKNER
FRANK E. PARKHURST
GEORGE McANENY
GUY CARY
HAROLD V. SMITH

LIABILITIES
(3,000,000 Shares @ $5 Par Value Each) . . $ 15,000,000.00
Reserve for Unearned Prem ium s.
48,121,615.00
Reserve for Losses..................
6,190,596.00
Reserve for T a x e s..................
2,350,000.00
Reserve for Miscellaneous Accounts . . . .
848,768.58
Funds Held under Reinsurance Treaties . .
173,600.52
NET SURPLUS......................................
50,371,517.84

C a p ita l S to c k

$123,056,097.94

HARVEY D. GIBSON

NOTE: In a c c o rd an ce with Insurance D epartm ent requirem ents—
Bonds a re valued on amortized basis. Insurance stocks of affiliated com panies a re carried
on basis of p ro -rata sh are of C ap ital a n d Surplus. All other securities a t M arket valuations.
Securities c arried a t $3,130,503.00 a n d cash $50,000.00 in the above Statem ent a re
deposited as required by various regulatory authorities.

FIRE—AUTOM OBILE-M ARINE and ALLIED LINES OF INSURANCE

S trength

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Federal Reserve Bank of St. Louis

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R eputation

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Service

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.. ......................... ............. ..............11■ : 1; ■n,., , . ........imi........ ...............................:

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and argue it out with the
Income Tax People
And because he know s th e value of sk ill and ex­
perience in his ow n field, th e certified p u b lic ac­
c o u n tan t, a u d ito r, or co m p tro ller does n o t ju st say,
‘‘$50 w o rth o f insurance, p le a se .” He asks for and
gets th e advice and full services o f an ex p ert p u r­
chasing agent in th e com plex insurance field, lik e
h im self an expert m iddlem an. N o w orries ab o u t
uncovered risks th a t m ig h t w reck a business.
*

HIS is th e tim e o f year th a t m ost m en w ish th e y
h ad th e services o f a com petent acco u n tan t to
h elp s tra ig h te n o u t th e unorganized personal b o o k ­
k eeping w h ic h m akes incom e tax blanks such a
problem . A nd every p ra ctical business m an know s
th a t th e k n o w led g e and advice o f th e expert ac­
co u n ta n t is w o rth w h a t it costs m any tim es over.

T

M odern business raises m any ta x and legal p ro b ­
lems w h ic h call for th e advice and services o f spe­
cialists in these fields and can o nly be solved w hen
th ere is a clear and sound accounting base un d er­
ly in g th e o p e ra tio n o f th e w h o le business.

*

*

Because w e believe so th o ro u g h ly in th e services
o f an expert m iddlem an, w h e th e r certified p u b lic
ac co u n tan t, insurance agent o r b roker, w e refuse to
accept business direct because it is n o t in th e in terest
of th e C om pany or th e assured to do so. W hen you
buy N a tio n a l Surety F id e lity Bonds, S urety Bonds,
B urglary o r F orgery Insurance th ro u g h y o u r local
insurance agent or b roker, you deal w ith a custom er
and friend w h o is a fellow m em ber and su p p o rter o f
th e A m erican Business System .

• This is a r e p r in t of a n a d v e r t is e m e n t of a sto ck
in s u ra n c e c o m p a n y d ire c te d to th e c e rtifie d pu blic
a c c o u n ta n ts in y o u r city .
The c o m m e r c ia l b a n k , lik e th e a c c o u n ta n t, r e n ­
d e rs a n in d is p e n s a b le s e r v ic e . Its c u sto m e rs a n d
its d ire c to rs a r e c h ie fly in d e p e n d e n t b u sin e ss m en
— r e p r e s e n t a t iv e of th e A m e ric a n B u sin ess S y s te m .

N ational Su r ety Co r p o r a t io n
V IN C E N T CU LLEN , President


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Federal Reserve Bank of St. Louis

7

'ankers w ise ly place vaults w here custom ers can se e them, know ing how w ell
th ese m assiv e fixtures reflect the safety and perm anence of their institutions. And w h en it com es
to ch eck s and other negotiab le instrum ents more than 75% of the nation's largest banks (as w ell as
outstanding b u sin ess organizations from coast to coast) are today sp ecifyin g "La M onte Safety
Papers" for the protection th ey offer and the custom er-satisfaction and good-w ill they generate.
G eorge La M onte & Son, N utley, N ew Jersey.

«


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Federal Reserve Bank of St. Louis

1

THE C H A S E
NATIONAL BANK
OF THE CI TY OF NEW YORK
S ta te m e n t of C ondition, D ecem ber

30, 1939

RESOURCES
C a sh a n d D u e from B a n k s .

.

.

B u l l io n A broad and I n T r a n sit

.

.

.

.

S tate and M u n ic ip a l S ec ur ities . . . .

1,531,789.02
820,169,815.83
115.818,216.32

S tock of F ederal R eserve B a n k . . . .

6,016,200.00

U. S.

G o v e r n m e n t O bl ig a tio n s , direct and fu l l y g uaranteed

O th er S ec u r ities

. . . .

L o a n s , D isc o u n ts an d B a n k e r s ’ A cc eptances .

135,271,736.00
636.176,032.45
33,230,012.74

.

B a n k in g H o u s e s ...........................................
O th er R eal E s t a t e ...............................

8.203,128.99
10,423,953.28
17,688,487.54
8,146,711.44

M o r t g a g e s ...........................................
C u st o m e r s ’ A cceptance L ia b il it y

. . . .

O th er A s s e t s .............................................................

$3,085,819,058.50
LIABILITIES
C apital F u n d s :
C apital S t o c k ............................................................. $100,270,000.00
S u r p l u s .........................................................................
U nd ivided P r o f i t s .................................................

100,270,000.00
33,021,785.02

$
D iv id en d P ayable F ebruary 1, 1940

.

.

5,180,000.00
15,314,589.22

R eserve for C o n t in g e n c ie s .
R eserve for T a x e s , I n t e r e st , et c .

1,850,485.58

D e p o s i t s ...............................

2,803,730,326.31

A cc eptances O u t s t a n d i n g .........................
L ia b il it y as E ndorser on A cc eptances and F oreign B ills .
O th er L i a b i l i t i e s .................................................

233,561,785.02

.

19,884,330.28
1,570,723.08
4,726,819.01
$3,085,819,058.50

United States Government and other securities carried at $104,897,563.40 are pledged to secure
public and trust deposits and for other purposes as required or permitted by law.
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n


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Federal Reserve Bank of St. Louis

•

•

«

n o r^

w e/ ter n

FEBRUARY

19 4 0

D E S

M O I N E S
NUM BER 631

FORTY-FIFTH Y E A R

Oldest Financial Journal West of the Mississippi River

IN THIS ISSUE
Editorials
A c ro ss th e D esk fro m th e P u b lis h e r..................................................................................... 10
C LIFFO RD DE PUY
Publisher

R A L P H W. M O O R H E A D
Associate Publisher

H EN R Y H. H A Y N E S

Feature Articles
F ro n tisp ie c e — “ T he W elcom ing Glow” ........ .......................................................................
H ow to In c re a se B an k E a r n in g s .................. .......................................W . E . B ro c k m a n
N ew s a n d V iew s........... ......................................................... -......................C lifford D e-P u y
H ow W e H elp O u r F a rm e r C u sto m ers M ake M ore M oney......... M . G. F a b riciu s
B e tte r B a n k in g th e C learin g h o u se W a y ............ ............................... F r a n k P. P o w ers
W hen th e B o ard M eets................................................................................................................
Y c u r Own G o v ern m en t Is Y o u r B ig g e st C o m p e tito r.....................................................
B a n k in g L e g islatio n — In W a sh in g to n ................................................ P a u l F . L a vezzo
N o rth w e ste rn B a n k e r D ig e st......... ............................. - ............- ....................... .............22,

12
13
14
16
17
18
19
20
23

Editor

Insurance
Be P e rs is te n t— B u t F rie n d ly .....................................................-............A r th u r H . K in g 25
J. STUART D A V IS
Associate Editor

555 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

•

•

•

N EW Y O R K O FFICE
Frank P. Syms
V ice President
330 West 42nd Street
Telephone Bryant 9-5490

M IN N E A P O L IS O FFIC E

Bonds and Investments
C ontinued I n d u s tria l A c tiv ity .......................................... ............... -....................... -..............
T he M o n th ’s M a rk e t M a n e u v e rs................................................... ...... Ja m es H . C larke
Iow a In v e s tm e n t B a n k in g N ew s—
....................-— .................................... -...............
P ic tu re s — Io w a In v e s tm e n t B a n k in g A n n u a l M eetin g ................... .............................
W h a t T h e ir S ta te m e n ts S how ..................... — ....................... -............. -........ -.....................
N e b ra sk a In v e s tm e n t B a n k in g N ew s..................... ....... .............. ....... ...... ...... ..... —-........

33
34
36
37
38
43

State Banking News
45
47
49
51
53
55
57
59
61
69
61
73

N e b ra sk a N ew s ..........................................................................
O m aha C le a rin g s .................. ..............................-...........
L incoln L ocals ........ ........................ -..........-..........-.........S o u th D a k o ta N ew s............ .......................................... -...........
M in n eso ta N ew s ......................... -......................... ....................
T w in C ity N ew s.......................................... -............-........
N o rth D a k o ta N e w s ............ .................................. -..........-.....
M o n ta n a N ew s ......................................... -.................---------Iow a N ew s ............................. ...................... -........ ...... .........
P ic tu re s — Iow a M id -W in te r B a n k in g C onference
G ro u p One M eets in Sioux C ity ----- ----—.................
G roup E lev en to M eet in K eo k u k........... ...................

J. A , Sarazen
Associate Editor
Telephone Hyland 0575

Savings and Loan
75

N o rth C e n tra l C o n feren ce in C hicago

The Directors’ Room
A F ew S h o rt S to rie s to M ake You L au g h .

MEMBER
Audit Bureau of Circulations
Financial Advertisers Association

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Federal Reserve Bank of St. Louis

Across the Desk
From the Publisher

A constant problem
Country Banks
for e v e r y country
Cooperate on
bank is w h at securities
Investment Problems

to buy, w hat m atu rity
they should have, and various other questions
which have to do w ith the investm ent of the
b a n k ’s funds.
B anks in sm aller com m unities do not alw ays
have access to statistical inform ation and other
d ata which large banks m ay have.
F o r this reason, G. 0. Thorpe, cashier of the
F irs t N ational B ank of Chippew a F alls, W iscon­
sin, has organized the “ Chippewa V alley C lub”
which is a group of sm aller banks in neighboring
com m unities gathered together to m eet the prob­
lem of investm ents in th eir various institutions
and to im prove investm ent m anagem ent of their
banks.
The executive officers of these banks have
signed an agreem ent to m eet reg u larly to study
reports of investm ent and business advisory serv­
ices to w hich the club subscribes. M embers will
also receive analyses of th eir security holdings
from a correspondent bank and discuss economic
tren d s—all as a basis for more detailed studies of
the securities which th eir banks hold or may
purchase.
This seems to us like a sound idea and one
which could be m ultiplied m any tim es th ro u g h o u t
the U nited States in other com m unities and w ith
other groups of banks.

When Peace The p a rt th a t the U nited States
will play w hen peace finally
Comes
comes will be a m ost im portant
one. W e have the g reatest supply of gold th a t
any nation has ever held at any tim e since the
world began.
This supply of gold places upon us both a re­
sponsibility and an opportunity.


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Federal Reserve Bank of St. Louis

A responsibility to see th a t it is handled wisely
and an opportunity to use it to the benefit not
only of the U nited S tates but of every co untry in
the world.
W hen peace comes we m ust also see th a t the
interchange of goods and services betw een coun­
tries is allowed to move quickly and sm oothly.
In bringing out this point, W inthrop W. A ldrich,
chairm an of board of directors of the Chase N a­
tional B ank, had this to s a y :
“ W e m ust all look fo rw ard to the day— and
prepare fo r it—when the w orld will again find
itself a t peace. I t is too soon to attem p t a forecast
of the influences w hich will determ ine the n atu re
of th a t peace. B ut one th in g is certain if peace,
when it comes, is' to have any real perm anency,
and th a t is th a t the m ultitudinous b arriers which
at the tim e of the outbreak of the w ar prohibited
or unduly ham pered trad e betw een the nations of
the w orld must be removed, and that a situation

must be created in which goods may move freely
and in volume over the international boundaries.
In the accom plishm ent of this resnlt it is unavoid­
able th a t the U nited States, because of its g reat
economic stren g th , will play a most im portant, if
not controlling, role. There is no doubt in my
m ind b u t th a t one of the most vital contributions
we will be in the position to m ake to the peace
settlem ent is th a t w hich has to do w ith the p ro b ­
lem of the stabilization of the exchanges between
the constituent p arts of the new political w orld
w hich will be created by the treaties to be entered
into a t the end of the war.
“ W e are already the possessors of 60 per cent
of the w o rld ’s m onetary gold stock. Before peace
can be achieved this share m ay have risen fu rth er.
In a large sense we are and will be the conserva­
tors of the w o rld ’s m onetary system .”
By studying our tariff situation and by allow ­
ing a freer interchange of goods is one w ay we

11

can do onr p a rt w hen peace comes. A nother w ay
is to see th a t our gold supply is used to help and
not h in d er w orld trade.
Unless som ething is done
and done very soon, the
U nited States, like the
re st of the countries of the
w orld, is going to be cen trally controlled and cen­
tra lly m anaged.
If th a t is the kind of governm ent th a t our
people w an t to tra d e for w h at they have had for
150 years, let them know exactly w h at they are
doing before they do it.
W e cannot believe th a t intelligent, well-read
citizens w ant any such centralized governm ent.
The trouble is th a t m any of them only listen to
the m isinform ation w hich they m ay get from some
bigoted radio rabble rouser who d oesn’t care w hat
happens to the governm ent as long as he increases
his personal power.
If you w an t to read a good analysis of “ w hither
we are d riftin g ” read the article by H. Gb W ells,
in the recent issue of L iberty, in w hich he says:
“ I dare to prophesy th a t in another score or so
of years th ere will be no governm ents in the
w orld w orth talk in g about, there will be a m ere
w elter of brigands and gangsters, unless we are
all as collectivized as are Russia and the to ta li­
ta ria n states now, and— w hich is the riddle in the
outlook—in some sort of common accord.
“ C ollectivization, w ith a crude disreg ard of
p ro p rietorship and individual enterprise, has
tak en possession of R ussia and the to ta lita ria n
states, and in the form of the New Deal it struggles
to take possession of America, W ith infinite re ­
luctance, even the B ritish system is being forced,
backw ard, and protesting, tow ard the same end.
E veryw here we are coming under c o n tro ls: the
rich are being tax ed out of pow er and influence;
and y et this system of governm ent, idea-blind,
to tally u n p rep ared for the task, is under our
horrified eyes assum ing the m anagem ent of a new
B ritish m uddle-headed collectivist state.
“ This collectivism w hich is rolling down upon
us from the east knows nothing of the trad itio n
of personal rights. There have been no M agna
C hartas east of the Rhine. It is a collectivization
in the d a r k ; even w hen it is honest it is passionate,
dogm atic, and im p atien t of criticism . In the
darkness it is bound to blunder into paternalism ,
absolutism , dishonesty, inefficiency, confusion,
and disaster. ”
If this disaster, inefficiency and confusion is to
be kep t from the U nited States, the bankers of
Am erica m ust help to perform th a t service.

Let's Fight
Centralization
of Government


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Federal Reserve Bank of St. Louis

B anking, more th an any other function, re p re­
sents the life blood of the com m unity, and when
th a t life blood is m ade to flow in only one direc­
tion, tow ards a centralized controlling board, of
w hatever ch aracter it m ay be, then to th a t ex ten t
is the country doomed and will all of its activities
be controlled from one source w ith the pow er of
life and death.
L et us see th a t it does not happen in Am erica.

U. S. Savings Bond
Competition

For eveiT bond sold
by tlle United S‘ates

1
governm ent it is tak in g
m oney from some productive enterprise and p u t­
tin g it into bureaus and alphabetical organizations
where in nine cases out of ten it is nonproductive.
However, the credit of the U nited S tates is so
high th a t U nited States Savings Bonds, to the
am ount of $3,010,693,100 have been sold from
M arch 1, 1935 to October 31, 1939.
The sales through post offices have am ounted
to $2,606,633,150 and m ail order sales have
am ounted to $404,059,950.
The U nited S tates Savings Bonds purchased by
some of the states are as follows :
Illinois ..............
$324,630,925
M innesota .................................. 135,300,550
Missouri .................................... 131,061,500
Iow a ....................
112,816,700
K ansas ................................
78,320,175
60,478,800
N ebraska ......
M ontana ..................
23,871,775
N orth D akota .........
19,689,950
South D akota ........
18,479,625
It is also an interesting observation th a t bonds
of the $100 u n it accounted for 29 and 39/100 per
cent of the to tal sold or $3,200,966.
Classification of all the bond units purchased
are as fo llo w s:
$ 25 B ond..............$2,716,292
24.94%
50 B ond...... ...... 1,997,414
18.34%
100 B ond___ __ 3,200,966
29.39%
500 B ond.............
907,093
8.33%
1000 B ond______ 2,069,272
19.00%
W hatever disadvantages m ay have resu lted
because of this com petition of U nited S tates Sav­
ings Bonds w ith the quotations of other securities,
a t least one fa ct stands out prom inently, th a t
bonds of $100 denom ination are more po p u lar and
bought in larg e r quantities th an any other unit.
In the fu tu re as corporate and in d u strial financ­
ing increases, perhaps this th o u g h t will be helpful
in the fu tu re sale of securities, thus allow ing the
individual w ith a sm aller am ount of cap ital to
invest, and purchase bonds of units of sm aller
denom inations.


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Federal Reserve Bank of St. Louis

13

How to Increase Bank E tittlitlg S
Bankers W ill Find the Financing of Tractors and Other Farm Equipment
A Profitable Method of Increasing Bank Earnings

ANKS located in th e b e tte r ag ricu l­
In th e p ast th e m an u factu rers,
By W . E. B ro ckm an
tu ra l areas are finding a new and
e ith er direct or th ro u g h a subsidiary,
Vice President
profitable o u tlet for th e ir su rp lu s
have carried the bulk of notes as an
Midland National Bank & Trust Co.
funds in financing th e sale of tra c to rs
accom m odation to th e dealer. Some
Minneapolis
and o th er farm equipm ent. F o r m any
still operate on th is plan and others
years follow ing th e in tro d u ctio n of
do so if th e dealer p refers to handle
th e farm tra c to r and o th er pow er
his sales in th is m anner. T here is,
m ach in ery for farm use, in stallm en t
how ever, a grow ing recognition th a t
to follow th ro u g h u n til the contracts
sales w ere h andled largely by th e m a n ­
the local banker, because of his s tra te ­
are paid.
u factu rer, and in som e cases by re ­
gic position and know ledge of th e p u r­
(3)
The m an u factu rers are w orking
sponsible dealers w ho w ere financially
ch aser’s financial standing and ability
closely w ith th e banks th a t are financ­
able and w illing to tak e th e risk. Only
to pay, can co n trib u te m aterially
ing sales eith er by loans extended to
in recen t y ears have b anks becom e an
tow
ard th e p roper handling of in stall­
dealers, paper purchased from them ,
im p o rta n t factor in th e extension of
m ent loans. Most of th e com panies
or direct loans to farm ers. These m an ­
th is ty p e of credit.
are now recom m ending th a t th e ir deal­
u fa c tu rers are in sisting upon a sound
G radually as m ach in ery has become
ers finance a m ajor portion of th e ir
sales and financing program so th a t
sales th ro u g h the local banks.
m ore perfected it has been possible for
not only th ey them selves b u t th e
a fa rm e r to d eterm in e th e ex te n t to
Eligible Tractors
w hich th e p u rch ase of m odern m a­
ch in ery w ould m ake his operation
New equipm ent m an u factu red by
m ore profitable and ju stify going into
established com panies is regarded as
debt for equipm ent. Often th e supply,
the m ost eligible m erchandise for this
dem and and cost of labor are an im ­
type of financing. T here are, of course,
p o rta n t factor in a rriv in g a t a deci­
cases w here loans for th e financing of
sion. In recen t y ears th e im prove­
used m achinery can be considered b u t
m en t m ade in farm tra c to rs has revo­
in such cases th e responsibility of the
lutionized farm ing.
borrow er becomes th e im p o rtan t and
deciding factor ra th e r th a n security
T h ere are certain im p o rta n t factors
w hich today m ake farm tra c to r paper
offered by a ch attel covering th e equip­
a desirable in vestm ent.
m ent. T here are alw ays m any p u r­
(1)
T he farm tra c to r has a g re a te r
chasers sufficiently stro n g financially
u tility th a n ever before. The develop­
to w a rra n t accom m odation on a basis
m en t of th e ligh t and speedier type
independent of th e collateral value of
of tra c to r m eans th a t tra c to rs are not
th e
equipm ent being
purchased.
re stric te d to actu al cu ltiv atio n and
B anks have alw ays m ade loans of
h a rv e stin g b u t are p u t to a v ariety
th is kind and as a rule such tra n sa c ­
of uses, used th ro u g h o u t th e y ear
tions are handled in th e sam e m an n er
and in all kinds of w eath er. Given
as a com m ercial loan although in stall­
norm al use th e cost of re p a irs during
m en t paym ents are freq u en tly a r­
the first few y ears are nom inal. F i­
ranged.
w. E . B R O C K M A N
nally, th e ran g e of prices of tra c to rs
F rom a practical stan dpoint the pro­
is such th a t th e cost is low enough on dealer, th e b an k er and the purch aser cedure usually followed is for a p u r­
certain types for th e sm all farm er and m ay keep losses to a m inim um .
chaser to go to th e bank, som etim es in
th e y can, therefo re, be used on both
T here are th ree d istinct types of the com pany of the dealer, and dis­
sm all and large scale o perations on an financing in w hich banks m ay engage cuss his proposal and endeavor to
econom ical basis.
in connection w ith th e sale of tracto rs arran g e for credit th a t w ill be satis­
(2)
M an u factu rers are giving m ore and th e financing of dealers. The first factory to all concerned so th a t the
atte n tio n to building up stro n g dealer has to do w ith direct lines w hich m ay note can be re tire d a t m atu rity . Often
organizations.
A b ran ch m an ag er be g ran ted to a dealer w ho has suffi­ th e dealer m ay check w ith the bank
m u st be experienced and com petent. cient capital and w ho has established in advance of a contem plated sale and
Q uality sales are looked for by th e him self as a sound operator. The in th is w ay determ ine w h eth er or
m a n u fa c tu rer ra th e r th a n volum e. second has to do w ith paper purchased not th e prospect is a desirable credit
The good dealer or b ran ch m an ag er is from th e dealer covering sales to in ­ risk.
expected to be as careful of credits dividual purchasers, and th e third con­
General Terms of Purchase
as th e b a n k e r w ho finances th e sales. sists of m oney loaned direct to the
D istrib u to rs realize th e ir resp o n sib il­ p u rch aser secured by a ch attel m o rt­
A dow n-paym ent of 33 % to 40 per
ity to th e b an k th a t carries th e pap er gage to be paid back on the in stall­ cent is usually considered desirable.
and usu ally can be depended upon m en t plan.
(T u rn to page 29, please)

B


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Federal Reserve Bank of St. Louis

14

News

and

O F THE

B A N K IN G

V iews
W O RLD

By Clifford De Puy
| OHN BU R G ESS, vice p resid en t of
J
th e N o rth w e ste rn and N ational
B ank and T ru st Com pany of M inne­
apolis is th e only d irecto r w est of
Ohio in th e B an k er A ssociation for
C onsum er Credit. The association
w as organized in Ju n e 1939, w h en 410
b an k e rs atten d ed a m eeting a t Lake
Conneaut, Ohio. Mr. B urgess, in ad­
dition to being a directo r of th e
association, is also a m em ber of th e
executive com m ittee.

L ast y e a r th e T re a su ry D epartm ent
gave out a list of all individuals re ­
ceiving com pensation of $15,000 and
upw ard, b u t th is y e a r th e list includes
only those w ho received $75,000 a
y ear or m ore in salaries, bonuses and
com m issions an d does n o t include
dividends and o th er sources of income.
A few of th e top executives are given
in th e follow ing list:
Occidental Life In su ran ce Co.—H oyt

In a recen t poll, conducted by the
C entral H igh School of Jo u rn alism in
Omaha, in w hich th ey w ere asked to
nam e th e th ree o u tstanding m en in
th e new s for 1939, th e stu d en ts se­
lected Joseph Stalin, in ternationally,
F ran k lin D. R oosevelt, nationally, and
A lvin Johnson, presid en t of th e Live
Stock N ational B ank of Omaha, locally.
Up to now we have alw ays th o u g h t
th a t Alvin w as really a v ery fine fel­
low, b u t we hate to see him get m ixed
up w ith such com pany.
Two young ladies w ho receive spe­
cial copies of th e colored frontispage
of th e N orthw estern B anker each
m o n th are C arolyn B renton, age 14,
and Jane B renton, age 12, show n left

M. L eisu re, $177,668.

C ontinental Illinois N ational B ank
and T ru s t Com pany of Chicago —W al­
ter J. C um m ings $100,550.

B u rro u g h s A dding M achine Co.—
Standish B acku s $85,125, A. J. D ough­
ty $80,150.
N ational B ank of D etroit—W. S.

M cLucas $88,800.
P ru d e n tia l In su ran ce Com pany of
A m erica—F ran k lin D ’Olier $78,314.
Chase N ational B ank — W inthrop
A ldrich $177,600, H. D onald Campbell
$103.320.
Corn E xchange B ank T ru s t Co. of
New Y ork—W alter E. F rew $75,720.
E m p ire T ru st Co. of N ew Y ork—
L eroy W . B aldw in $75,830.

F irs t N ational B ank of N ew Y ork—
Leon F raser $75,100.

C ARO LYN A ND JA N E B R E N T O N

to rig h t in the picture. These are the
charm ing dau g h ters of Mr. and Mrs.
W. H. B ren ton of M inneapolis. Mr.
B ren ton is vice presid en t of th e N orth
w est B ancorporation.

Irv in g T ru s t Co. of New Y ork—
L ew is E. P ierson $79,200, H arry E.
W ard $75,600.
M organ S tanley and Co., Inc. —O. H.
C halkley $105,500; A. E. L yon $104,500.

M utual Life In su ran ce Co. of New
York— I). F. H ouston $125,000.
N ational City B ank—Jam es H. P er­
k ins $96,420, Gordon S. R en stch ler
$97,919.
N ew Y ork T ru st Com pany—M orti­
m er N. B u ck ner $95,400, A rtem us L.
Gates $80,150.

N ational Life In su ran ce Co. of
M ontpelier, V erm ont — Trum an H.
C um m ings
$168,570.

$95,672,


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Federal Reserve Bank of St. Louis

E dgar T. W ells

R oyal F. M unger, financial editor of
th e Chicago Daily News, in speaking
before th e Iowa In v estm en t B ankers
A ssociation, in D avenport, th e o th er
day, said not to w o rry too m uch about
p resid ential candidates in th e com ing
natio n al cam paign, b u t to “concentrate
upon g etting rock-ribbed, in dependent­
th in k in g congressm en into W ashing­
ton, and you w on’t need to w orry
m uch about w ho th e executive m ay
be.
“The defense of individual liberty
has alw ays come th ro u g h Congress,
and not th e chief executives. F or
executives, no m a tte r w here th ey are,

w ill take all th e pow er
a reasonable hope of
T his is good advice
keep an eye on your
Congress.

th a t th e y have
g ettin g .”
for all of us—
candidates for

A ccording to a recen t estim ate by
th e F ed eral R eserve Board th e U nited
States has an u n p recedented to tal of
over 64 2 /5 billion dollars in b an k de­
posits, or about $489 for every m an,
w om an and child in th e country.
A rn u lf U elaiul, vice p resid en t of th e
M idland N ational B ank and T ru st
Com pany of M inneapolis, is spending
$50,000 to rem odel th e ir b an k in terio r
and w hen th is w ork is com pleted the
M idland w ill have one of th e m ost
m odern up-to-date b an king hom es of
any in stitu tio n of a sim ilar size.
A rch W. A nderson, p resid en t of th e
California B ank of Los A ngeles and
form erly vice presid en t of th e Con­
tin en tal Illinois N ational B ank and
T ru st Com pany of Chicago, has left on
a trip from th e Pacific to th e A tlantic
coast and from New Y ork he w ill em ­
b ark on th e steam ship, City of N orfolk,
m aking stops a t B altim ore, th e Canal
Zone and Acapulco, Mexico, before he
re tu rn s to Los Angeles.
R obert G oethe, p resid en t of The
C harles E. W alters Company, Inc.,
of Omaha and p u blisher of “T he Con­
fidential B anker,” d istrib u ted w ith a
recen t issue of th e ir publication th e
b u lletin sen t out by th e in d ep en d en t
B an kers A ssociation, w hich also in ­
cluded a copy of th e W rig h t P atm an
Bill, “To re stric t the estab lish m en t of
b ran ch offices by financial in stitu tio n s
ch artered or in su red u n d er th e law s
of th e U. S.” In com m enting on this
bill B en B u B ois, secretary of th e asso­
ciation at Sauk Center, M innesota,
said, “In W rig h t P a tm a n ’s bill to
freeze b ran ch banking, a copy of
w hich is enclosed, we have a proposed
piece of legislation th a t w ill do m uch
to p erp etu ate our A m erican system of
banking. T his bill is not destructive.
It doesn’t te a r dow n w h at has been
done b u t it does stop those propo­
n en ts of concentration from carry in g
out a policy th a t w ould be ruinous to
th e b an king fra te rn ity and highly
detrim en tal to th e public in general.”

W hen th e first an n u al m id-w inter
B anking Conference of the Iow a B ank­
ers A ssociation w as held in Des
Moines recently, a banquet w a s
planned for th e evening at w hich H. B.
Steagall, chairm an of the U. S. H ouse
B anking and C urrency Com m ittee, w as

15
to speak. A t th e last m in u te he w as
unable to atten d . To help fill in th is
unexp ected change in th e p ro g ram a
n u m b er of officers of th e Iowa-Des
M oines N ational B ank and T ru s t Com­
p an y e n te rta in e d ab o u t forty-five of
th e ir b a n k e r friends a t a d in n er p a rty
a t th e H e rm it Club.
A m ong those w ho acted as h osts for
th e b an k w ere A lbert .T. R obertson,
H arry H. S ivrigh t, C larence A. D iehl,
vice p residents; H arry G. W ilson,
cashier; H arold P. K lein an d E v erett
M. Griffith, a ssista n t vice presidents.
R odn ey T. L ien, fo rm erly in th e
b a n k in g business in W aterloo and
M ason City, and m ore recen tly execu­
tive vice p re sid e n t of th e N ational City
B ank of Lim a, Ohio, has been ap ­
poin ted S u p erin ten d en t of B anks for
th a t state.
L. M. G iannini, p resid en t of th e

B ank of A m erica, has th re a te n e d to
co n v ert his o rganization from a N a­
tio n al B ank into a S tate B ank unless
S ecretary of th e T re a su ry M orgenthau
stops his antag o n ism to w ard s th e b an k
m anagam ent.
“It is n o t necessary th a t we belong
to th e F ed eral R eserve System ,” ac­
cording to Mr. G iannini. He also said
th a t S ecretary M orgenthau had been
“p ersecu tin g him and o th er B ank of
A m erica executives.” W e th in k no
one w ould object if th e b an k system
w h ich has endeavored to dom inate
C alifornia b an k in g activ ities did get
out of th e F ed eral R eserve System and
let th e ir ow n b an k in g d e p a rtm e n t of
C alifornia tr y to figure out all of th e ir
in tric a te holding com panies and affili­
ates.

F ran k W arner, secretary of th e Iowa
B ankers A ssociation, received m any
com plim ents for th e fine one-day m id­
y e a r convention w hich w as held in
Des Moines last m onth. The question
of C onsum er C redit Loans, w hich w as
th e subject discussed at th e afternoon
session, created a great deal of in terest
as also did th e o th er questions on the
pro gram including “G overnm ent com­
p etition in th e B anking Field.”

In a recen t su rv ey conducted am ong
farm ers by Successful F arm in g the
question of a th ird term w as asked
w ith th e follow ing results:
T hird Term: Question: If th e w ar
is still going on and if Roosevelt ru n s
for a th ird term , w ould you vote for
him:
Yes
No
All F a rm e rs
............ . . . 49%
51%
M idw est F arm ers
. . . 41%
59%
O ther F a rm e rs .......... . . . 57%
43%
“P resid en t R oosevelt’s popularity,
fluctuating as usual, rises slightly
w hen th e w ar is m entioned. In a n ­
o th er p a rt of th is survey, his sup­
p o rters decreased by 6 per cent w hen
a sim ilar question om itted m ention of
th e w ar. A Coal county, Oklahoma,
fa rm er typifies th e pro-Roosevelt
group w ith th e com m ent: “W ouldn’t

w an t to change presid en ts in th e face
of th e conflict.” A gainst him fum ed
a m an from Sanpete county, Utah:
‘No w ar w ould be sufficient reason to
keep th a t m an in office!’ ”
A lbert E. F elsted, ad v ertisin g m an ­
ager of th e F irs t N ational B ank in St.
Paul, w as kep t busy as a “bee”, tak in g
care of th e publicity for th e an n u al St.
P aul Ice Carnival, w hich is th e o ut­
standing event each y e a r in th a t city.
A lex H ighland, presid en t of the
E m pire N ational B ank and T ru st Com­
pany of St. Paul, w ith w hom we vis­
ited th e o th er day, rep o rts a v ery fine
year, and according to th e ir last sta te ­
m ent th e b ank had deposits of over
$8,685,000 and loans and discounts of
$4,086,000.
Lord A lfred Duff Cooper, form er
first lord of th e B ritish A dm iralty,
spoke in M inneapolis th e o th er night,
and as w e en tered th e building w here
th e lecture w as to be given, we w ere
handed a m im eographed page, entitled
“E nglish P ropaganda Is H ere”. It
w as sixteen below zero th a t night, and
a young lady, w ho rep resen ted the
“Tw in City A rea Y outh Com m ittee
(T u rn to page 30, please)

Ch ase Employee Receives Award

H erbert L. H orton, p resid en t of th e
Iowa-Des M oines N ational B ank and
T ru s t Com pany, has been elected a
tru ste e and w elfare d irecto r of th e
H. B. H a w ley F oundation, succeeding
John C ow les, w ho is now p re sid e n t of
th e M inneapolis S tar-Jo u rn al and a
resid e n t of M inneapolis. The H aw ley
F o u n d atio n w as created by th e late
Mr. H aw ley, p resid en t of th e G reat
W estern In su ran ce Com pany, and w ill
ev en tu ally be used to provide a bu ild ­
ing to house all of th e w elfare agencies
in Des Moines.
T hom as E. D ew ey, candidate for th e
R epublican P resid en tial nom ination,
has figured out th a t th e F ed eral gov­
ern m e n t is spending $17,500 every
m in u te an d is ta k in g in only 55 cents
for ev ery dollar spent. It is doubtful
w h e th e r an y corporation w ith a finan­
cial sta te m e n t of th a t c h a ra c ter w ould
be extended an y cred it an y w h ere in
th e U nited States.

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Federal Reserve Bank of St. Louis

S tan d in g before a p o rtra it of the late H enry W. Cannon, form er chairm an of the
Chase N atio n al B ank and founder of the b a n k ’s annual com petitive exam ination
fo r employes, H. D onald Campbell, p resid en t of the Chase, looks on as Reeve
Schley, vice president, aw ards the first prize in the 1939 com petition to Charles
W. Per-Lee of the b a n k ’s public u tilitie s d epartm ent. O ther w inners were
George J . Suter, A lb ert W. W idm er, George R. Thomson, H e rb e rt P. Von der
P o rten , F. N. G arrett, J r.; honorable m ention w as aw arded A rth u r Foulks,
M ilton S. Coe, K ennedy Buell, C harles N ew ton and C lifton B. W ilburn. F ifteen
years ago, Mr. Cannon established a tru s t fund, th e income from w hich supplies
annual cash aw ards to several employes a tta in in g the highest ra tin g in an exam ­
in atio n on b an k in g and related subjects.

16

How W e Help O ur Farmer
Customers M dkß M 0f6 Motlßy
: BECAME associated w ith th e Osage
F a rm e rs N ational B ank of Osage,
Iowa, on Ju ly 1, 1936, w ith th e p u r­
pose of adding an additional service
to th e farm er custom ers of th e bank,
and assistin g th e p resid en t in th e loan
departm en t. I had p reviously been
C ounty A g ricu ltu ral A gent in M itchell
County for th re e years, and w as an
ag ricu ltu ral g rad u ate of Iow a State
College.
The first m onths of m y w ork w ere
spent in m aking appraisals and ob­
serv atio n s of som e of th e problem
loans, try in g to determ ine, if possible,
w hy th ey w ere not m aking m ore
progress. D uring th is tim e we b u ilt
up a cred it file of m ost of our cus­
tom ers, and o th ers w ho m ig h t be cus­
tom ers som etim e. It w as our th o u g h t
to analyze th e vario u s loans, and see
if th e re m ig h t be some w ay in w hich
we could be helpful to them , and th e re ­
by benefit the b ank and th e custom er
alike.
As an illu stratio n , we found one
custom er w ho w as buying heavy
feeder cattle, and feeder pigs instead
of lig h ter cattle, raisin g his ow n pigs,
and m ilking a few good cows. W e
w ere able, w ith careful diplom acy, to
m ake him try a little different m ethod.
Since th e n he has been raisin g two
litte rs of pigs each y ear on clean

ground, is m ilking some cows to help
pay operating expenses, and feeding
less cattle and buying them lighter in
w eight. He has helped him self and
is a b e tte r custom er for th e bank.
W e have a custom er w ho owed the
b ank a large ch attel line d uring the
depression. W e encouraged him to
try to re n t a b e tte r farm , w hich he
did. He m ilked a large h erd of nonprofitable cows w hich w ere not paying
for th e feed. He sold th is en tire h erd
of cows and I w ent w ith him up to
M innesota to replace his herd. He
bought a good foundation h erd of
high-grade H olsteins w hich is now one
of th e good herds in the county. He
feeds a few lam bs each y ear and buys
light feeder calves. He has elim inated
his old chattel, and is now on a cu r­
re n t borrow ing basis for feeder p u r­
chases.
Aside from th is type of w ark, we
have tried to build up for fu tu re
business by assisting in every w ay
possible w ith 4-H Club w ork, and
ru ra l young peoples organizations. I
have been acting as a local 4-H Club
leader, and served on th e County 4-H
com m ittee. I have been invited as
speak er for num erous m eetings and
ban q u ets here and in adjoining coun­
ties. T he b ank gives trophies and
aw ards each year to outstanding club

I t is by helping its farm er custom ers develop c a ttle like these, th a t the Osage F arm ers
N ational B ank is c o n trib u tin g to th e a g ricu ltu ral advancem ent of its comm unity.

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

By M . G . F a b ric iu s
Agricultural Adv isor
Osage Farmers National Bank
Osage, Iowa

achievem ent w inners. W e buy club
calves and pigs each y ear a t th e fair;
th ereb y helping to establish a good
club sale. The b ank each y ear m akes
loans to club m em bers for th e p u r­
chase of baby beef calves, m ark et and
p u reb red sows for litte r projects, and
lam b feeding loans. W e ask th e p aren t
to sign th e note w ith th e 4-H Club
m em ber.
We have helped to organize and
m ain tain a C attle F eeders Associa­
tion. T he association’s activities in ­
clude scheduled m eetings w ith m ark et
and feeding ex perts secured from th e
A g ricultural College a t Ames. E ach
year th e association holds an an n u al
b an quet w here speakers have been
invited from th e sand-hills of N ebras­
ka, th e N ational L ivestock and M eat
Board a t Chicago, and from th e K ansas
City m arket. T he y e a r’s schedule in ­
cludes one or tw o feed-lot to u rs each
year. One to u r is held in th e sum m er
to see the fat cattle in Ju n e in a few
rep resen tativ e feed lots. Feeding in ­
form ation is discussed and values of
th e different lots of cattle are esti­
m ated on these tours. L arge groups
of farm ers and invited guests accom ­
pany these to u rs to th e enjoym ent and
education of everyone. We have ac­
com panied cattle feeders to th e m a r­
k ets and into th e sand-hills of N ebras­
ka on cattle buying trips. G enerally
we all purchase cattle for our own
farm s, b u t we also have bought cattle
on orders for our custom ers.
The p resid en t of our b ank is in
charge of some farm s, and we have
established farm ing operations on tw o
of them . W e operate them w ith h ired
labor, b u t ow n all of th e equipm ent
and livestock. W e carry on a reg u lar
farm ing program —including hog ra is­
ing, cattle feeding, keep a dairy herd,
and flocks of breeding sheep. W e
keep accurate cost records of our
farm ing en terp rise and feel th a t th ey
(T u rn to page 24, please)

17

B etter
Banking
The
Clearinghouse
W ay
By Fran k P. Po w ers
President
Kanabec S t a te Bank
Mora, Minnesota

G REA T deal h as been said
ab o u t centralized b an k in g con­
trol, an d w h e th e r th e suggestion
com es from persons in politics or from
th e so-called m odern th in k in g econo­
m ist, th e philosophy expounded in
both in stan ces should have no p a rtic u ­
la r w eig h t w ith people gen erally u n ­
less th e suggestions for a change in th e
ban k in g system can be justified by u n ­
disputed facts. T he g re a t m ajo rity of
th in k in g people, an d I believe th a t you
w ill agree w ith m e in th is statem en t,
app reciate th e service w hich has been
given to A m erican business, in d u stry
and ag ricu ltu re in th e developm ent of
our country, an d th a t is p a rtic u la rly
tru e in th is g re a t n o rth w e st te rrito ry .
T h ere is, how ever, a d istu rb in g factor
w hich e n te rs into th e discussion of th is
subject, and one th a t possibly causes
th e g re a te st confusion in th e m inds of
th e laym en, and th a t is th e decided
lack of u n ifo rm ity in b an k operatin g
policies, service charges, p ay m en t of
in te re st on tim e deposits an d savings
accounts, an d m ore recen tly th e lack
of com pliance w ith th e “w age and
h o u r law .”
As ban k ers, we should realize th a t
in o rd er to p reserv e th e k in d of a

A


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Federal Reserve Bank of St. Louis

F R A N K P. P O W E R S

ban k ing system th a t you and I believe
in, th ere m u st exist a clearer u n d e r­
stan ding on the p a rt of bank people of
th e necessity to create u n ifo rm ity
along the lines I have ju s t m entioned,
and tak e aw ay th ro u g h th a t kind of a
cooperative and co-ordinated program
th e factors w hich are so distu rb in g to
th e m en and w om en on the o th er side
of th e banking counter.
If we are agreed in th e diagnosis of
th e difficulty, th e n the th in g left for us
to do is to perform th e m echanical
operation in “stream -lining” our organ­
izations and rem ove from our banking
in stitu tio n s th e troublesom e ailm ent.
T his m ay be accom plished in several
different ways. N am ely, th ro u g h local
clearinghouse associations in tow ns or
cities of sufficient size to ju stify a lo­
cal clearinghouse association, county
b a n k e rs’ associations or group associa­
tions tak in g in g reater territo ry .
In a g ricu ltu ral states, th ere is n ot a
g re a t deal of diversification, and, th e re ­
fore, it should be an easy m a tte r to con­
c e n trate along one line of th o u g h t in
perfecting organizations w ith in given
tra d e territo ries, to b ring about the
desired results. It is m y sincere belief
th a t this can be done in th e ru ra l dis­

tricts by th e organization of regional
clearinghouse associations w here the
te rrito ria l boundry lines w ill be con­
fined not to exceed th ree or four coun­
ties, all of them operating u n d er a co­
ordinated program w orked out by a
rep resen tativ e com m ittee of th e State
Association.
Two y ears ago th e A m erican B ank­
ers A ssociation urged its m em bership,
and p articu larly th e state associations,
to give m ore serious th o u g h t to organ­
izing clearinghouse associations in
every state, and sho rtly afte r th a t the
M innesota B ankers A ssociation ap ­
pointed a com m ittee for th a t purpose.
D uring the follow ing m onths, tw entyfour associations w ere organized in
M innesota, w hich included every coun­
ty in th e state. Our experience in M in­
nesota is m ost in terestin g and th e suc­
cess of our associations dem onstrates
the w o rthw hileness of th is program .
A lthough we have not reached th e
points of 100 p er cent uniform ity, a
g reat deal has been accom plished and
a m uch b e tte r b anking situ atio n exists
th a n before th e regionals sta rte d to
operate.
The boundaries of th e regional asso­
ciations w ere established to take in

18

:-r '

r

When The
B o a rd M e e t s
UCH has been said and w ritte n
about th e duties an d resp o n si­
bilities of m en w ho are direc­
to rs of a b an k in g in stitu tio n . A n u m ­
ber of y ears ago, in th e sm aller banks,
a t least, m em bers of th e board, unless
th e y h appened to be active officers, a p ­
p are n tly did n o t tak e a g re a t deal of
in te re st so far as th e o peration of th e
b an k w as concerned, leaving th e m an ­
agem ent to th e officers, an d tak in g th e
la tte rs ’ w ord for w h a t should or should
n ot be done. H ow ever, d u rin g recen t
years th e m ajo rity of b an k d irectors
really tak e an active p a rt in th e ad­
m in istra tio n of th e b a n k ’s affairs, and
th is is as it should be. In th is article
th re e b an k directors tell us w h a t th ey
th in k about th e ir job.
Dr. A ndrew H. W oods is a d irector
of th e F irs t C apital N ational B ank of
Iow a City, Iowa, an d he says:
“The c h a ra c ter of th e board of di­
rectors, as a com posite of th e ir in d i­
vidual ch aracters, is th e only basis of
confidence for a b an k in th e com m u­
nity. L ike C aesar’s wife, a b an k direc­
to r m u st be above suspicion. W h ite­
w ash in g an d v en eerin g w ill only accen­
tu a te w eak featu res in a m a n ’s p ast
record. T he stockholders m u st select
as th e ir d irecto rs m en w hose personal
habits, in teg rity , and sound ju d g m en t
du rin g previous y ears have b u ilt them
into th e com m unity as solid founda­
tion stones.
“E ach d irecto r th u s chosen m u st
give his ju d g m en t as an individual
and as a m em ber of com m ittees, w ithour p rejudice and w ith o u t self-seeking,
upon every issue th a t arises. W eak­

ness in a ban k begins insidiously. A ft­
er th in gs have ru n sm oothly for y ears
and a fter th e public has gained confi­
dence in th e bank, th e n th e g reatest
d anger begins. T he d irector m u st be
ready to p u t his finger on beginning
looseness of m anagem ent, p a rtic u la r­
ly as reg ard s loans and investm ents,
an d call th e m anagem ent back to es­
tablish ed principles before flag ran t
e rro rs have appeared.
An im p o rtan t d irector co n trib u tio n
is th ro u g h direct contacts w ith pro s­
pective patrons. I t is not th ro u g h cal­
low tric k s of salesm anship, b u t by
sim ple, straight-forw ard statem en ts
about th e b an k to prospective custo­
m ers th a t he w ill convince th em of
definite p articu lars in w hich th e b ank
w ill serve th e ir in terests.
“My advice to new ly elected direc­
to rs is: ‘D on’t accept service unless
w illing to give a g reat deal of tim e and
th o u g h t to th e b a n k ’s problem s. D on’t
go in m erely as a personal investm ent.
T he b an k is a public institu tio n , and
it m u st be view ed as a contrib u tio n to
th e public w elfare w o rth tim e and ef­
fort, or even risk of financial sacrifice,
for th e general good.”
In expressing his opinion on how
directors can best serve th e ir bank, F.
G. P arsons, a d irector of th e Iow a
T ru s t & Savings B ank of E stherville,
th in k s a p rim ary d uty is to pass care­
fully on loans, and see to it so far as
possible th a t all loans are good. Com­
m en ting on new business, Mr. P arsons
says:
“Get good new custom ers, n o t only
from old residents, b u t to keep an eye

out for new com ers. E v ery com m unity
has certain persons w hose business
does n ot reflect credit on a bank, and
it is ju s t as im p o rtan t to avoid these.
“M ainly, m y suggestion to a new di­
rector, w ould be th a t he keep ever in
m ind th a t it is H IS bank, and his d uty
to help keep it a clean bank, and to be
on his toes a t all tim es to get new b u si­
ness.
J. N. Lee, a ssistan t cashier and a di­
recto r of th e D ecorah State B ank, m en ­
tions th e follow ing th re e points:
“1. D uties and responsibilities of
b an k director:
To a tte n d each and ev ery m eeting,
to be p u n ctu al a t th e m eetings, to be
inform al a t th e m eetings, to tak e an
active p a rt in th e discussions and as­
sum e p a rt of th e responsibility a fte r
a question has been settled an d th e
policy established. H e should be cour­
teous to th e clientele of a bank, m eet
th em on com m on ground. To th e em ­
ployes, he should show respect; resp ect
to w ard th e ir w ork, no m a tte r how
m enial it m ay appear to them . T hey
are perform ing th e ir d uties an d m ay
be doing it well. R ew ard an em ploye
w hen rew ard is due.
“2. Use no inform ation secured in
th e exam ination of his b an k or secured
d irectly or in d irectly th ro u g h his b an k
in his daily p u rsuits.
“3. All th e above and be fair a t all
tim es, forget personal gain for th e in ­
te re st of th e bank, w h at it is try in g
to do in its service to th e com m unity.
Help, directly, in th e successful ful­
fillm ent of all its endeavors.”

te rrito ry w h ere b an k in g problem s
w ere ab o u t th e sam e so th a t th e m em ­
bers w ould have a com m on in terest,
and in all cases th e ir problem s w ould
be quite sim ilar. T hese associations
hav e done such a splendid job th a t our

council of ad m in istratio n decided to
discontinue th e group system and con­
fine all of our association fieldw ork to
th e regional association m eetings.
A ttendance at th e clearinghouse as­
sociation m eetings is alw ays splendid

and m any b an k ers w ho have n ot been
in th e h ab it of a tten d in g group or state
conventions come regularly. T he dis­
cussions are alw ays v ery in terestin g ,
and, n a tu ra lly so because th e group is
(T u rn to page 77, please)

M


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Federal Reserve Bank of St. Louis

-x

19

Your Own Government Is
Your Biggest
Nebraska Bankers Association Issues Report on Government Agencies
in Competition with Banks

W e p u b lis h h ere th e r e p o r t of
th e c o m m i t t e e on “A g e n c ie s In
C o m p e t i t i o n W i t h B a n k s ” of th e
N e b ra s k a B a n k e r s A ssociation,
w h ic h sets f o r th in d e t a il th e i n ­
con sisten cies of G o v e r n m e n t s u p ­
p o r t on on e h a n d a n d o b jectio n ­
a b le loan c o m p e t i t i o n on th e
o th er. C h a ir m a n of this c o m m i t ­
te e is O tto K o t o u c , p re sid en t,
H o m e S ta te B an k, H u m b o ld t.
M e m b e r s of his c o m m i t t e e are A .
J. Jorgenson, p r e s id e n t, A m e r i ­
can N a tio n a l B an k, S id n e y ; J. A.
Cline, Jr., cashier, F arm ers &
M e rch a n ts B ank, B lo o m fie ld ; J.
Y . Castee, cashier, M c D o n a ld
S ta te B an k, N o r th P la tt e ; 1. R.
A l te r , e x e c u tiv e vice p re siden t,
First N a tio n a l
Bank,
G ra n d
Isla n d ; a n d E. W. R o ssite r, p r e s i­
d en t, B a n k of H a rtin g to n .

im p o rtan t ag ricu ltu ral section of the
U nited States:
Deposits in
Postal Savings
S tate
Ju n e 30,1938
Illinois
....................
$173,885,738
In d iana
38,282,612

M

ANY agencies set up by th e F ed ­
eral g o v ern m en t an d th e v a­
rious states, invade th e field of
banking. Of such agencies in stitu te d
by th e governm ent, th e P ostal Savings
system on th e one hand, and th e P ro ­
duction C redit A ssociations, on th e
other, p re se n t indeed a stran g e p a ra ­
dox.
The P ostal Savings system , operated
by an agency of th e g o v ern m en t and
a t th e expense of th e governm ent,
boasts th a t it is self-supporting and
th a t it does not com pete w ith banks.
H ow ever, in th e th re e y e a r period
ending Ju n e 30, 1935, its deposits in ­
creased seven-fold. Over one billion
dollars w as w ith d ra w n prin cip ally
from b an k s d u rin g th a t period and re ­
deposited in th e P ostal Savings sys­
tem . It is hig h ly significant th a t th is
tra n sitio n w as accom panied b y th e
larg est decline in th e n u m b er of b anks
in th e h isto ry of our country. The
depression su rely becam e m uch m ore
acute d u rin g th is period.
The follow ing table as of Ju n e 30,
1938, show s how th e com petition of
th e P ostal Savings system affects our

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

OTTO KOTOUC

Iow a
K ansas
..........................
M ichigan
M innesota
M issouri
N e b r a s k a ....................
Ohio
O klahom a
Texas
W isconsin
T otal
T otal for U nited States

59,419,411
24,662,241
96,845,011
40,373,681
39,302,008
25,811,732
69,219,128
21,546,018
33,731,421
36,994,890

$660,073,891
$1,251,799,180

Tw elve of our forem ost cen tral ag ri­
c u ltu ral states have lost over one-half
billion dollars to th e P ostal Savings
system , or about 53 p er cent of the
total deposits in th e Postal Savings
system . May not th is sudden and v ast
w ith d raw al of funds from uses of ag ri­
cu ltu re and earm ark ed for o ther p u r­
poses have helped to p ro stra te the

a g ricu ltu ral in d ustry? C ertainly the
banks in these areas suffered severely
w hen the change took place.
Due to th e efforts of th e R econstruc­
tion Finance C orporation m any banks
stren g th en ed th e ir capital stru c tu re s
follow ing th e m o rato riu m of 1933 in
o rder to assist th e governm ent in re ­
building anew th e v ast resources and
in d u stries of our country. F o r it is an
unquestioned fact th a t our p resen t
dual system of b anking has m ade
A m erica prosperous and great. U n­
ham pered, our A m erican system of
b anking could again accom plish the
task. E v id en tly th e fram ers of th e
B anking Act of 1933 so felt w hen th ey
established th e F ed eral D eposit In s u r­
ance C orporation. U nfortunately, in
th e general eagerness to b rin g about a
quick recovery an additional agency
w as set up w hich is now com pleting
th e stran g e paradox, th e P roduction
C redit associations.
Since th e ir organization, th e P ro ­
duction
C redit associations
have
closed a total of 1,078,180 loans, ad­
vances on w hich including renew als,
aggregated $1,120,840,034. The follow­
ing table indicates how th e banks in
the tw elve cen tral ag ricu ltu ral states
m entioned took a n o th er lacing th ro u g h
th e ir operations:
Production
Credit Asso­
ciations’ loans
closed d uring
State
y ear 1938
Illinois ................
$ 13,553,240
Indiana ............
10,445,373
Iow a
..................
7,737,304
K ansas
..............
5,260,056
M ichigan
4,074,970
M innesota
8,898,859
M issouri
6,956,377
N ebraska
6,575,631
Ohio
................
9,718,880
O klahom a
5,849,205
Texas
................ 25,744,075
W isconsin
................
8,623,965
Total
$113,437,935
T otal for U nited States
302,622,809
(T u rn to page 79, please)

20

Banking Legislation Being Discussed
in Washington
R E S ID E N T R oosevelt opened the
second session of th e seventy-sixth
C ongress w ith a plea for u n ity and
cooperation. H ow m uch u n ity or co­
operation w ill exist a fte r th is electiony ea r session grow s older rem ain s to
be seen b u t prospects do not seem
too b rig h t considering issues to be
decided: reciprocal tra d e pro g ram ex­
tension, taxes, a proposed cut in farm
aid, new em ergency pow ers for the
president, national defense spending
and W agner A ct revision.
N avy S ecretary C harles E d iso n ’s
proposal for new em ergency pow ers
at a tim e w hen m any legislators th in k
th e P re sid e n t’s pow ers alread y too
great, touched off a hot controversy
on Capitol Hill. U nder th e proposed
legislation, w hich E dison called “ju st
a ro u tin e p a r t” of p reparedness, the
Chief E xecutive could req u ire factory
ow ners producing ships or w a r m a­
teria ls to p u t th e ir facilities a t the
disposal of th e g o v ern m en t and re q u i­
sition an y p lan ts he d eterm ined th e
g o v ern m en t m ight need. The late
Senator W illiam E. B orah denounced
th e proposal as an attack on th e bill
of rig h ts and a m ove tow ard to ta lita ­
rianism .
He charged th a t E dison
sought to use a “so-called em ergency”
to ju stify u n co n stitu tio n al expansion
of executive pow er. Senator Sherm an
M inton (D., Ind.), a New Dealer, said
th e proposal violates “th e sp irit of a
D em ocratic co u n try .” Rep. Jo h n Mc­
Dowell (R., Pa.) intro d u ced a resolu­
tio n to create a seven-m an com m ittee
to determ in e how broad th e P re si­
d e n t’s em ergency pow ers already are.

P

Trade Program
Senate M inority L eader C harles L.
M cN ary (R., Ore.) said any hope for
“u n ity ” in C ongress on dom estic issues
disappeared w hen R oosevelt requ ested
renew al of th e trad e pro g ram and re ­
vealed norm al g o v ern m en t spendings
w ould be reduced to th e benefit of an
expanded natio n al defense. T he T rade
A greem ents Act, unless extended, will
expire Ju n e 12.
B reakdow n of th e A rgentine trad e
talk s w hich h ad aroused fears am ong
w estern farm ers w as gen erally view ed
as a step to w ard extension of th e
program .
Twenty-five R epublicans,
fearin g a la te r m ove w hich m ight be

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

By Paul F. Lavezzo
Washington
The

C orre spon de nt

Northwestern

Banker

a b u rd en on farm ers of th is country,
issued a statem en t u rging Senate ra ti­
fication of each treaty .
“T he only g u aran tee against such
an event,” the statem en t said, “is
am en dm ent of th e T rade A greem ent
A ct to provide th a t all such agree­
m ents eith er m u st be ratified by the
Senate like all o th er treaties, or con­
firm ed by the H ouse and S enate.”
S enator C arter Glass (D., Va.) also
feels th e treaties should be “subject to
ratification by th e Senate as th e Con­
stitu tio n req u ires.”
S ecretaries H ull and W allace dove
into th e fight denouncing opponents
of reciprocal trading.
W allace de­
clared foes of the program are “p re ­
p arin g for a n o th er tariff grab like

those of 1922 and 1930.” He said th ey
are “ap p aren tly attem p tin g to induce
certain farm in terests an d certain
labor in terests to act as th e shock
troops in this cam paign, so th a t th ey
them selves can stay in th e re a r and
come up in tim e to w alk off once m ore
w ith the m ajor sh are of th e booty.”
W allace challenged th e charge th a t
farm ers have suffered as a re su lt of
the 22 pacts already in effect and said
th a t discontinuance of th e program
w ould be un fo rtu n ate.
“A program of th is kind w ill be
p articu larly im p o rtan t in th e days of
a post-w ar w orld, w hich all of us, I am
sure, sincerely hope are not too far
aw ay,” he said.
P resid en t R oosevelt and S ecretary
H ull have also defended th e trad e
program as a m ove tow ard lasting
peace. H ull said th e w orld faces an ­
arch y unles reb u ilt by such a m ethod
as th e treaties provide. He vigorously
denied th a t any “portion of ag ricu ltu re
has been in ju red by these tre a tie s”
and told “u n scru p u lo u s” critics th e
program is th e w ay of advancing
dom estic p ro sp erity and w orld peace.
The B usiness A dvisory Council,
composed of fifty in d u strialists and
business m en w ho advise th e Com­
m erce D epartm ent on m atters affect­
ing both business and governm ent, has
gone on record in favor of extending
th e program .
“An en largem ent of our op p o rtu n i­
ties for trad e inv estm en t in foreign
countries is now essential to m axi­
m um national pro sp erity ,” th e Coun­
cil’s re p o rt said. “These ends, th e
B usiness A dvisory Council believes,
w ill be served by an extension by Con­
gress for a reasonable period of tim e
of executive pow er to negotiate and
proclaim trad e agreem ents provided
for in the trad e agreem ents act.”
T he rep o rt opposed any move to re ­
quire Congressional approval of agree­
m ents.
“As long as the ad m in istrativ e h a n ­
dling of th is program is subject to
congressional review or ad ju stm en t
a t reasonable periodic intervals, we
have no fear of undem ocratic abuses
of th e pow ers placed in th e hands of
th e executive.”
(T u rn to page 72, please)

MEM B ER
FEDERAL
DEPOSIT
I NSURANCE
CORPORATION

National Bank

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Federal Reserve Bank of St. Louis

22

Bank Management —
Customer Relations —
Loans — New Business

digest
C o lle c tin g O ld Lo a n s
W ith P e rso n al Lo an s
An idea th a t has placed slow-pay
borrow ers on th e good-pay list has
been used to good ad v antage by J.
Irv in Crossett, of th e U nion P la n te rs
B ank an d T ru st Com pany of M emphis,
Tennessee. He w rite s ab o u t th e plan
in a recen t issue of B a n kers M onthly,
and sta rts out by saying:
“Our personal loan d ep artm en t w as
first installed for th e purpose of m ak ­
ing sm all m o n th ly p ay m en t loans to
th e people of our com m unity. T his
d ep artm en t grew v ery rapidly. Our
losses w ere relativ ely sm all, and th e
efficient and profitable operation of
th is d ep artm en t w as soon noticed by
all of th e officers of our bank.
“As o u r new borro w ers liked the
m o n th ly in stallm en t plan and w ere
m aking pay m en ts reg u larly , we con­
ceived th e idea th a t p erh ap s oth er
borro w ers w ho w ere slow in paying
th e ir loans m ig h t be in a position to
m ake sm all m o n th ly p ay m en ts.”
T he collection procedure outlined
by Mr. C rossett is about as follows:
1. The custom er is asked if he is
w illing to pay his loan by th e m o n th ly
in sta llm e n t m ethod.
2. If he is w illing, he is asked to pay
th e old note by signing an in stallm en t
note form .
3. The com m ercial d e p a rtm e n t is
given cred it for th e old note and th e
new note is placed in th e pouch of th e
personal loan departm ent.
4. All collateral and co-signers con­
tin u e to p ro tect th e new note.
5. Collections are m ade exactly in
the sam e w ay as collections on p e r­
sonal loans.
6. If th e b o rro w er alread y has a
note in th e personal loan departm en t,
th is is included in th e new note, for
it costs less to service one note th a n
it does to service two.

K n o w the F a rm e rs' N e e d s
Speaking before th e re c e n t A. B. A.
Conference in Richm ond, W alter S.

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Federal Reserve Bank of St. Louis

C othran, vice presid en t of the N ational
City B ank of Rome, Georgia, made
four suggestions for ban k ers in th e ir
contact and business w ith the farm ­
ers in th e ir com m unity. He said in
part:
“W ith the nu m b er of banks in the
sm aller tow ns, m ostly in ag ricu ltu ral
sections, reduced to half of w h at they
w ere 20 y ears ago; w ith com petition
for ag ricu ltu ral paper v astly increased
th ro u g h lending agencies w ith g reat
reserv o irs of funds and w ith F ederal
blessing, and in m ost instances, you
m u st adm it, w ith excellent su p er­
vision of the farm ing m ethods of the
borrow ers; w ith banks everyw here
seeking loans w hich w ill em ploy th e ir
funds to advantage—then, since the
farm er p refers to secure his financing
from his friend and neighbor a t his
hom e-town bank, th is b an k er m ust
m eet his com petition by ren d erin g an
equal or a sup erio r service in fu rn ish ­
ing pro p erly directed credit to his
farm er borrow er. A nd ag ricu ltu ral
credit can best be directed by a sym pa­
th etic and thorough and studied u n ­
d erstan d in g of th e farm ers’ problem s
and needs.
“B anks have been censured for not
m aking loans, especially ag ricu ltu ral
loans. It is not sufficient th a t w e re ­
ply th at, not having any tax in g pow ­
ers, we could not resto re our deposi­
to rs ’ m oney w hen we m ade loans
w hich we knew in advance we could
not collect. T he real an sw er is this:
Use th ree fu n dam ental principles;
nam ely: req u ire a live-at-home policy
of diversified farm ing; req u ire a p ro ­
g ram of soil conservation and soil­
building; and give to each borrow er
th e benefit of your personal in terest
and advice and counsel.
“May I sum m arize in these four sug­
gestions:
“1. M eet the com petition of produc­
tion credit associations and o th er
agencies by adopting some of th e ir
policies w hich p erm an en tly benefit th e
borrow er.
“2. Study the needs of each indi­
vidual farm er w ho applies to you for
a loan.
“3. W hen you take ag ricu ltu ral
paper, know w h at you are doing for
th e farm er as w ell as for yo u r bank.
“4. Im prove th e type of y o u r ag ri­

cu ltu ral p aper by seeing to it th a t the
funds are used as p a rt of a planned,
long-time program for th e b ette rm e n t
of th e farm ers’ ag ricu ltu ral, economic,
and social condition.”

A n In v e stm e n t
S u p e rv isio n S c h e d u le
In in v estm en t supervision schedule,
some featu res of w hich could be
adapted to even th e sm allest bank,
appeared in a recen t issue of B anking,
suggested by E. S herm an Adams,
in v estm en t analyst. It is outlined as
follows:

Daily
A ssistant cashier w orks tw o h o urs a
day p rep arin g lists and reports, keep­
ing up records, analyzing securities,
noting new s item s, etc.
P resid en t m ay sell undesirable hold­
ings at or n ear liquidating prices set
by th e com m ittee and m ay execute
o th er sales in line w ith “q u a rte rly ob­
jectives”.
P resid en t m ay buy bonds after in ­
vestigation if th ey m eet certain re ­
q uirem ents and fit “q u a rte rly objec­
tiv es”.
P resid en t m ay check w ith city cor­
respondent and, in m ost instances, act
upon advice received.

Weekly
P resid en t inform s th e com m ittee re ­
garding any developm ents relatin g to
th e b a n k ’s investm ents.
Com m ittee m ay authorize p urchases
and sales w ith in lim itations of w ritte n
in v estm en t program .
Com m ittee review s all undesirable
holdings.

Bi-Weekly
Com m ittee review s e n tire bond list
accom panied by various sum m aries,
gives special consideration to issues
m oving out of line m arketw ise.

Monthly
Com m ittee r e v i e w s liquidating
prices for undesirable holdings.
A ny u p w ard revisions are passed
upon by th e board.
R eport on portfolio is subm itted to
th e board.
Com m ittee review s inv estm en t reso­
lutions.

Quarterly
E n tire bond list giving liquidating
prices for undesirable holdings is sub-

23

Director Cooperation—
Special Services —
Personnel Problems
m itted to city co rresp o n d en t for re ­
view.
T his review is sum m arized for th e
board and unex ecu ted sale recom m en­
dations are passed upon.
Com m ittee sets “q u a rte rly objec­
tiv e s” for n e x t th re e m onths.
F o u rth m em bership on th e com m it­
tee is rotated.

Semi-Annually
P re sid e n t visits city correspondent.
Com m ittee review s w ritte n in v est­
m en t program .

Annually
Year-end re p o rt p resen ted to th e
board.
C om m ittee o utlines objectives for
com ing year.

The G o o d Lo an in g O ff ic e r
B an k ers all over th e co u n try are in ­
tere ste d in loans, and of course th is
topic w as discussed at len g th at th e
Illinois C onference on B anking. One
of th e sp eak ers w as W. R. M cGaughey,
p re sid e n t of th e M illikin N ational
B ank of D ecatur, Illinois, w ho said:
“T he position of a good loaning
officer is one of th e m ost im p o rtan t,
if not th e m ost im p o rtan t, in th e bank.
He is a fu n ctio n ary in a g re a t in s titu ­
tion w hich is th e h e a rt of th e com ­
m u n ity ’s business life. H e is in a posi­
tion to go fo rw ard w ith th a t in s titu ­
tion ju s t as far as his p o ten tialities
can possibly be developed—provided
he keeps th e sp ark of am bition and
in itiativ e alive w ith in him self.
“He m ust, if he is to enjoy success
and hap p in ess in life, see in his job
a g re a t o p p o rtu n ity and a g re a t chal­
lenge. He m u st be p rep ared by a
w holesom e m en tal a ttitu d e to w ard his
job, to m eet th ese responsibilities w ith
courage and fortitude. He m u st m eet
th em fortified w ith a w holesom e
m en tal a ttitu d e on th e one h an d to ­
w ard th e bank, its depositors and its
stockholders, and on th e o th er h and
tow ard th e b o rro w er and to w ard th e
com m unity. A loaning officer w ho is
capable of m eetin g th is dual resp o n si­
b ility w ill develop and m a in ta in th e
public resp ect and good w ill upon
w hich th e success of b an k in g has been
b u ilt and w ill continue to grow.
“A gruff, undiplom atic loaning offi­
cer w ill do m uch to defeat th e good

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Federal Reserve Bank of St. Louis

w o rk of th e tellers and o thers in th e ir
efforts to build good w ill for th e bank.
“The p roper handling of applicants
for loans w ill aid in elim inating the
feeling on th e p a rt of th e public th a t
a b ank is a cold, heartless in stitu tio n .”

digest

long-term G overnm ent securities is
sym ptom atic of th e p resen t depressed
Tim e w as w hen b an k ers felt th a t
condition of th e capital m arkets, and
au d iting w as som ething for th e larger
of th e necessity of th e com m ercial
in stitu tio n s only—m any banks w ere
banks to earn at least “bread and b u t­
too sm all, and th e procedure w asn ’t
te r.” C ontinuing unbalanced budgets,
necessary, anyw ay. T his view point
the in ev itability of a h igher com­
has changed in recen t years, fostered
m odity price level, th e continued di­
in some cases by a sad experience, u n ­
version of p riv ate capital savings
til now th e sm aller co u n try banks are
th ro u g h tax atio n for governm ental re ­
p u ttin g it into practice. W ritin g in
quirem ents, th e restrictio n s on the
B u rroughs Clearing House, Sheldon
flight of foreign capital to our m arkets,
B. Cooper, cashier of th e A nderson
th e increased attractiv en ess of for­
B anking Com pany of A nderson, In ­
eign m oney m ark ets for in vestm ent
diana sets fo rth th e follow ing eight
by foreigners of th e refugee capital
points on auditing routine:
now located here, all com bine to re n ­
1. W ork done by an em ployee
der inevitable a breakdow n of the a rti­
should be checked or audited by th e
ficial low level of long-term m oney
em ployee w ho perform s th e nex t op­
rates th a t has prevailed here in recen t
eration in sequence.
years, and w ill in due course restore
2. Send w ork th ro u g h th e ban k in
them to a level approxim ating th a t
definite steps, w ith a control balance
w hich prevailed in th e 1933-1934
at ev ery possible point en route.
period.”
3. Divide th e responsibility for dif­
fe re n t operations as far as can be done
Lo an O p p o rtu n itie s o f
economically. T hen definitely assign
Field W a re h o u s in g
each bit of responsibility to th e proper
“In field w arehousing, th e w are­
person.
4. Split custody of assets into u n its house goes to th e product instead of
sm all enough so th a t th ere w ill alw ays th e product to th e w arehouse,” says
Dr. Jo h n H. Frederick, professor of
be dual control and also so th a t th ere
w ill alw ays be full insurance coverage tra n sp o rta tio n and in d u stry at the
U n iversity of Texas, in an article on
for any possible u n it loss.
5. B reak the co n tin u ity of any one th e subject in The M id-Continent
B anker. W ritin g of requirem ents, Dr.
o p e rato r’s individual control over an
F red erick says:
operation.
“As has been said, field w arehousing
6. Use su rp rise tim ing of check-up
is really no th in g m ore th a n an exten­
au d its in conjunction w ith continuity
sion of th e financial services of public
of au d it control.
7. E xercise ex tra vigilance at points w arehousing organizations. It can be
w h ere trouble is recognized as peculi­ legitim ate only w hen certain req u ire­
m ents are fully met. These req u ire­
a rly likely to occur.
8. A udit directly those item s w hich m ents are:
“1. T he goods m u st be stored w ith a
cannot advantageously be handled as
bona fide public w arehousem an, oper­
incidental to o perating routines.
atin g as such for profit and having no
connection w ith th e storer.
O u tlo o k fo r Lo n g -Term
“2. T here m u st be an actual and
M o n e y R a te s
continuous change of possession, and
Sum m ing up th e outlook for long­ control of th e goods. The possession
te rm m oney rates, an excerpt from an m u st be absolutely and unequivocally
in th e w arehousem an w ho should have
article in B ankers M agazine w ritte n
th e sole rig h t of access to th e place of
by A. P hilip W olfson, says:
“T he c u rre n t 21A p er cent level for storage.

A u d itin g in a C o u n tr y Bank

24

STATEMENTS
May w e m a k e a fe w in th e in terest o f
b oth o f u s?

WESTERN MUTUAL
Is y o u r b est in su ra n ce ou tlet b eca u se it
offers an o p p o rtu n ity fo r you to c o n cen ­
trate y ou r b u sin ess in a C om pany w h ose
grow th and so u n d co n d itio n p rove its
stab ility and p ro g ressiv en ess.

BANKER AGENTS
T h r o u g h o u t Iow a, N ebraska and S outh
D ak ota fe a tu r e W estern M utual in su r­
an ce b eca u se o f th e h ig h regard o f the
p u b lic fo r th e C om pany’s n on -assessab le
p o licies and o u r ow n co m p lete e n g in eer­
in g and lo ss service.

T h e p o licy h o ld er

gets m ost fo r h is m o n ey w ith W estern
M utual p ro tectio n and ou r agents get
m o re b eca u se o f o u r h ig h co m m issio n
sch ed u le.
May we call and explain the
M utual can offer you? W e can
wind and supplem ental lines in
m obile and truck coverages and

advantages W estern
handle all your fire,
addition to all auto­
plate glass.

’'Safety and Service with Savings"

W ESTERN MUTUAL
FIRE INSURANCE
D E S M O I N E S , IO W A

“3. Notice of possession by th e w a re ­
housem an should be given to th e p u b ­
lic in such a clear, u n m istakable m an ­
n er th a t no one can be m isled as to
the rig h ts of th e p arties to th e goods.
“If a field w arehousing operation
m eets these requirem ents, tra n sa c ­
tions arising out of it cannot be suc­
cessfully attacked in any so rt of p ro ­
ceeding, and w ill be profitable to all
concerned.
“F ield w arehousing loans have, by
th e ir application to credits th a t could
not otherw ise be pro p erly handled, be­
come an im p o rtan t p a rt of th e loaning
activities of m any banks. As business
m en and ban k ers m ore generally real­
ize th e profits from th is type of loan
it is likely th a t th e use of field w are­
house receipts as collateral w ill in ­
crease. T his w ill benefit custom ers
and b ank profits w here th e tim e and
atten tio n is given to th e consideration
of possible loans of th is type and to
the careful establishm ent of m ethods
and system s of servicing.”

FARMER CUSTOMERS
MAKE MORE M O N E Y
(C ontinued from page 16)
help us in our b an king business. W e
are finding our profitable en terp rises,
and some of th e leaks in th e farm ing
business. We have operated these
farm s at a profit each year, and it
fu rnishes us valuable in form ation on
cropping practices, such as fertilizers,
rotations, seed varieties, etc., w hich
we can use in th e b ank w hen talk in g
w ith custom ers.
It is our purpose and in ten tio n s to
keep as w ell inform ed on farm m a t­
ters as possible. W e stu d y m ark etin g
trends, outlook inform ation, new de­
velopm ents in farm ing, feeding tests,
fertilizer results, and all o th er types
of inform ation reg arding farm ing. W e
sp en t considerable tim e and effort in
helping to prom ote a local “Use M ore
L a rd ” cam paign here in th e county.
T he resu lts have been v ery gratify in g
by th e increase in sales of lard by
our local m erchants.
W e have encountered some difficul­
ties in th e w ay of being m ildly rid i­
culed for our good intentions. Of
course, we try to use our m ethods to
help im prove our volum e of business
and build for fu tu re secu rity and profit
for our bank. W e are sincere in our
efforts to try to be m ore helpful to
our custom ers, and believe th a t in
th e end we w ill be successful in ac­
com plishing our purpose.

Best
She: “Doctor, w h a t’s th e b est w ay
to get a w a rt off m y han d s?”
He: “Shoot him or m arry him .”
Northwestern Banker


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

February 1940

Be P e r s i s t e n t BUT

FR/ENDLy
By A r th u r H . King
District M anager
Reliance Life Insurance Company
St. Louis

A. H . K I N G

about the need in every m a n ’s life
for a definite m o n th ly incom e after
re tire m e n t age—an incom e th a t w ill
IF T E E N y e a rs ’ experience in th e
last as long as he m ig h t live.
in su ran ce business h as convinced
S urprisingly enough, he readily
m e th a t th e re are c ertain ru les of
In try in g to follow day by day these
th e gam e, and th a t to apply th ese ru les
sim ple rules, I feel I have created agreed th a t a life incom e w as of th e
m eans m ore business and g re a te r suc­ hab its w hich have a real value to me g reatest im portance, and it is every
cess to an y agent. J u s t as th e re is a and w hich add im m easurably to th e m an ’s problem , and th a t it w as his
b est w ay to keep books, lay bricks, pleasure and satisfaction of each day ’s problem too, but, said he, “W h at can
be done about it? W ho can secure an
or play golf, th e re is a b est w ay for w ork.
th e u n d e rw rite r to go about his job
R ecently I called on a m an w hom I incom e 25 y ears from now? In s u r­
of selling life insurance.
h ad reason to feel w as a good prospect ance is all rig h t if you w an t to leave
A ny m an w ho w orks a t a job over a —th a t is, he had a definite need for m oney to som eone else, b u t I don’t.”
statem en t
revealed
several
period of y ears w ill consciously or u n ­ insurance, and he had th e necessary T his
consciously develop certain hab its m oney w ith w hich to buy. On m y things: F irst, th is m an had ap p aren tly
him self so effectively
w hich w ill e ith e r help him or h in d er
first call th is “good p rospect” said, barricaded
him in th e doing of th e job. J u s t so, “Mr. King, I don’t need insurance. I against the possible in tru sio n of an
every m an w ho has sold life in su ran ce
don’t w an t insurance.
I have no in surance m an th a t he actually didn’t
successfully over a period of y ears w ill m oney to buy insurance. And, I am know th a t R etirem en t Incom e protec­
have developed certain constructive busy as you can see. You w ill excuse tion w as available on a proven, prac­
a ttitu d e s to w ard his w o rk as an agent; me, of course?” His tone and m an n er tical basis. Secondly, not know ing the
facts, he had no faith in th e in teg rity
he w ill have developed certain helpful w ere cold and ab ru p t, leaving no room
h ab its in connection w ith organizing for stock-in-trade form ulas for gain­ and financial soundness of present-day
Thirdly, he, like
his tim e, m aking his daily calls, secu r­ ing an in terv iew I m ight like to try life com panies.
ing interview s, p resen tin g his proposi­ on him. It w as only afte r several others, th o u g h t of in surance as a dietion, and closing his prospects. I t is, calls and a definite system I have to-win proposition. He w anted to live,
I th in k , im p o rta n t th a t these hab its
followed th a t I w as able to talk to and had no trouble visualizing the
problem of living, after 65 as well as
be consciously selected and developed him.
ra th e r th a n lettin g th is m a tte r be left
In th is case, w ith o u t a h ab it of before age 65.
By p resen tin g clearly to th is pros­
to chance.
friendly persistence, I am sure I w ould
have dropped this m an from m y pros­ pect in term s of specific facts and fig­
M any y ears ago I w rote dow n seven
pect list. B ut reason tells me th a t ures, in term s of exact costs and bene­
sim ple guides for m yself. I have tried
to keep th ese guides in m ind and to prospects are hu m an and m ost fits, by presen tin g to him earn estly
check m y daily p erform ance against h u m ans are 85 p er cent all right, th e ir and convincingly th e record of my
them . I set th em out here for w h at g eneral cussedness usually not exceed­ com pany and its rig h t to his confi­
th e y m ig h t be w orth:
ing 15 per cent. T his m an w as v e n t­ dence, to g eth er we reached th e only
1. T sh all EX P E C T to succeed.
ing his 15 per cent on me because as logical conclusion, nam ely, a signed
application for a Life Incom e policy
2.
I w ill create a habit of friend ly he th o u g h t I w anted som ething from
p ersisten ce.
him —overlooking th e fact th a t I m ight th a t fitted his needs and pocket-book.
Because th is w as a case w here the
3.
I w ill take pains to find the b est be able to give him som ething he
w ay or w a y s of p resen tin g m y prod­ needed and needed badly. A prospect m ost difficult task w as not to sell the
such as th is is a challenge and success policy, b u t to sell the interview , it
uct. T w ill try to analyze, visu alize,
w ith such a prospect will, I believe, do m ay be of in te re st to include a few
dram atize, and hum anize to the best
m ore to stre n g th e n an agent th a n a w ords about m y procedure in this
of m y ab ility.
connection. It w ill be recalled on m y
4.
I w ill w ork co n sisten tly, rem em ­ th o u san d easy ones.
W hen, finally, I gained th e in te r­ first v isit th e prospect offered such
b ering th at th e ab ility to do, and to do,
are different th in gs, and th at an aver­ view I had already had a m easure of cold resistance th a t th e re w as prac­
th is m a n ’s a ttitu d e and th in k in g on tically no possibility of m aking an
age ag en t w h o w ill w ork is more
th e subject of life insurance, and effective reply; consequently I m ade
valuable than the ace w h o w o n ’t.
therefore, opened th e discussion by m y exit as gracefully as I could. The
5. I w ill be en th u siastic.
talk in g R etirem en t Income. I spoke follow ing day I w rote him a brief b u t
fi. I w ill learn from the exp erien ces

F


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

of others. Or, as one agent put it,
I’ll k n o w m y stuff.
7. I ’ll w ork hard, and I ’ll try to be
a sw ell guy.

26
courteous letter, th a n k in g him for th e
few m om ents he had accorded m e and
em phasized th e fact th a t m y purpose
w as to m ake his acquaintance and to
be of service to him. I also re fe rred
to a m u tu al frien d w ho had spoken
highly of him.
B efore m aking th e second call, how ­
ever, I m ade it a m a tte r of stra te g y
to m eet th is pro sp ect a t a g a th e rin g of
business m en. On th is occasion, no
com m ent w as m ade about o u r p re ­
vious m eeting or to life insurance. A
w eek la te r I called a t his office. On
th is occasion he w as fa r from cordial.
H ow ever, I sm iled as b roadly as pos­
sible and assu red him m y purpose for

calling w as n o t to discuss insurance
b u t to talk w ith him about a v ery
p erplexing problem . I pointed out
th a t a w idow of a client had placed
th e responsibility of investing h er
funds. I stated th a t I had been in
th e life in su ran ce business so m any
y ears th a t it had caused m e to have
a one-track m ind so far as in vestm ents
w ere concerned, b u t th a t I knew of
him as a successful in vestor of funds
and w anted his advice. A fter a lengthy
in terv iew he th an k ed me for th e com­
plim ent and assured me th a t anyone
w ho had as little success as he w ith
in v estm ents could not advise a widow.
H ere th e second in terv iew closed. Mr.

fyi+ ia n cia l S ta te m e n t
OF AMERICA'S LARGEST EXCLUSIVE
DWELLING INSURANCE COMPANY
(S ta te m e n t a s o f D ecem b er 31, 1939)

ADMITTED

ASSETS

C ash in B an k s an d Office................................................................$ 279,483.37
F e d e ra l S av in g s an d B u ild in g an d L oan A sso c ia tio n s........
289,000.00
B onds:
U. S. G o v e rn m e n t............................................... $515,991.17
C an ad ian G o v e rn m e n t......................... __............ 65,982.78
F e d e ra l L an d B a n k s .......... ................................. 89,557.50
S ta te an d M unicipals................ ..................... 497,922.35
P ublic U t i l i t i e s ...............
20,060.00
R a ilro ad s ..........
19,860.69
1,209,374.49
A ccrued I n te r e s t......................................... ........................................
13,730.18
A g e n ts ’ B alan ces (N o t over 90 d a y s ) ........................................
32,678.87
O th e r A sse ts .......................................................................................
290.88
T o tal A d m itte d A s s e ts ..............................................................$1,824,557.79

LIABILITIES
R eserve fo r L osses in P ro c e ss o f A d ju s tm e n t............ ...........$
12,467.29
R eserve f o r T ax es an d E x p e n se s..............................
9,773.95
U n earn ed P re m iu m R e se rv e...........................................................
675,142.88
G u a ra n ty F u n d .......................................................... $200,000.00
S u rp lu s ........................................................................ 927,173.67
P O L IC Y H O L D E R S ’ S U R P L U S ............................................... 1,127,173.67
T o ta l.............................................................................................. $1,824,557.79
Insurance in Force, December 31, 1939— $517,309,647.00

rto a n t/tiu /m i/
DWELLING INSURANCE COMPANY
O rgan ized 1892
H nbbell B uilding, Des Moines
O F F IC E R S
B. R E E S J O N E S
P r e sid e n t
L E S T E R T. J O N E S
V ic e P r esid en t

G R A N T M cP H E R R IN
T reasu rer

F R A N K H . D IR S T
S ecr eta ry

D IR E C T O R S
S en a to r C lyde L. H e rrin g , D es M oines
R. L loyd Y o u n g , O elw ein
F ran k H . D irst, H a m p to n
R ex H . F o w ler, D es M oines
L ester T. J o n es, D es M oines
H a rry F . G ross, D es M oines
O. B. M cK in n ey, D en ver, C olorado
G rant M cP h errin , D es M oines
R . J. S u lliv a n , N e w H am p ton
B. R ees J o n es, D es M oines

Northwestern Banker

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Federal Reserve Bank of St. Louis

February 19W

P rospect followed me to th e door and
cordially invited me to retu rn .
T his I did. T h at day I w as greeted
w ith a smile. I w as careful n ot to
m ention insurance. Our conversation
lasted about an h o u r d u rin g w hich
tim e I attem p ted to p ain t a few pic­
tu re s w ith o u t m aking an y direct re f­
erence. I t w as obvious th a t h e w as
giving deep th o u g h t to w h a t h ad been
said. N ot to m ake m yself too presum ptious, I attem p ted to leave. H ow ­
ever, I w as g reeted w ith “Say, fellow.
Sit dow n a m inute, w ill you? Tell
me som ething about th is R etirem en t
th in g .” The resu lts have been p re ­
viously stated. I cannot stress too
firm ly th e effectiveness of F rien d ly
Persistence.

Study Source of Injuries
A b u m per crop of bro k en bones and
sprains from w in te r sports, w ith
tobogganing as th e m ajo r source of
injuries, is rep o rted in a c u rre n t study
by N o rth w estern N ational Life In s u r­
ance Company.
N um ber of in ju ries has show n a
steady u p tren d for th e p ast several
w inters, according to physicians and
surgeons re p o rtin g to th e com pany,
follow ing th e nationw ide g ro w th of in ­
te re st in w in te r sports; in ju ries reach
th e ir seasonal peak early in F eb ru ary .
The ad u lt w ho has n ot been active in
athletics for some y ears and has re ­
cently tak en up w in te r sports, is a
freq u en t casualty.
Spinal fractu res of th e im pacted
v erteb rae type are m uch m ore com ­
m on th a n th e public realizes, accord­
ing to th e report, and generally re su lt
from going over bum ps w hile seated
on a toboggan. If not im m ediately
crippling, such in ju ries are com m only
neglected u n til p e rsiste n t back pains
and im p airm en t re su lt in an X -ray
w hich reveals th e seriousness of th e
in jury. Leg, hip and som etim es pelvic
fractu res re su lt from lettin g feet p ro ­
ject outside of th e toboggan. One
y o u n g ster dropping onto an o th er al­
ready on a coaster sled is a freq u en t
cause of spinal injuries.
Ankles, legs an d arm s suffer th e
m ost freq u en t in ju ries in sk ating and
skiing, w ith occasional skull frac­
tures; th e favorite “crack-the-w hip”
gam e is a freq u en t source of such
casualties, according to th e report.
M any an “ankle sp ra in ” tu rn s out to
be a fracture; a b roken ankle w ill
usually k n it quickly and perfectly if
diagnosed a t once and pro p erly
treated, th e re p o rt states, b u t a p erm a­
n e n t lim p often resu lts from a neg­
lected fractu re m istak en for a sprain.
T he H ollyw ood influence —- w earing
sh o rts for outdoor w in te r sp orts—

27

---------------------------------------------------------------------------V

m akes nice ro to g rav u re p ictu res b u t
is an in v ita tio n to pneum onia and
rh eu m atism , th e re p o rt says.
K itten ish sp irits aroused by a sleigh
ride produce an o th e r considerable
group of in ju ries, th e stu d y finds;
ju m p in g off an d on, p a rtic u la rly at th e
sides of th e m odern open sleigh, p ro ­
duces m ost of th e casualties.
P recau tio n s recom m ended are: Lie
on y o u r stom ach on th e toboggan and
don’t go over bu m p y slides or n ear
trees. Stay on th e sleigh. D on’t crack
th e w hip. If you are 35 or m ore and
have been out of ath letics for a n u m ­
b er of years, e n te r w in te r sp o rts w ith
pro p er resp ect for th e ir stren u o u s
n atu re, and build up th e body to m eet
th e stra in s im posed. P a re n ts should
inspect slides used by th e ir children,
and see th a t th ese are as n early safe
as possible.
In case of an accident, if a b roken
bone is suspected, th e re is no h u rry
unless th e bone projects th ro u g h th e
flesh.

Hawkeye Casualty Company
Des Moines, Iowa
TTj’O R 20 years H aw keye C asualty C om pany has
grow n and prospered. H aw keye has become
well know n th ro u g h o u t Iow a for its prom pt and
courteous service to policyholders, claim ants and
the public. T oday its five hundred agents join w ith
the m anagem ent in pointing w ith pride to the com ­
pan y ’s record for 1939. And w ith th a t pride in the
record up to now there is also a deep and sincere
resolve th a t 1940 and the years to come will see a
continuation and im provem ent of this splendid rec­
ord of progress based on m eritorious perform ance.
■

A SSETS

D uring 1939 th e M innesota Com m er­
cial M en’s A ssociation m ade v e ry ex­
cellent p rogress and show ed an in ­
crease both in resources and policies
in force.
T he to tal policies in force are now
over 25,639 and th e to tal resources
of th e association are over $319,635,
thirty-five p e r cent of w hich is in cash,
tw enty -eig h t p er cent in state, county
and m unicipal bonds and fo u rteen p er
cent in U. S. G overnm ent securities.
F o r over thirty-five y ears b an k ers
and b u siness executives have received
pro tectio n from th e M innesota Com­
m ercial M en’s A ssociation w hich has
alw ays provided th is service at th e
low est possible cost.

C ash ..........................................

.......$

1938

1939

140,181.44

U. S. G o v ern m en t B o n d s ..

209,725.89

$ 210,838.64
138,111.05

M unicipal and O th e r B onds.

147,199.48

137,000.70

C o rp o ratio n Stocks .............

51,400.00

78,961.00

A g e n ts’ B alances .................

137,688.62

O th e r R eceivables ...............
R eal E s t a t e ..............................
M o rtg ag es ..............................

110,468.17
29,474.46
199,033.22
44,476.65

185,808.59
42,778.72

T o ta l A s s e t s ...................

$931,959.31

$1,013,941.67

82,754.35

L IA B IL IT IE S
P rem iu m R e s e r v e .................
L oss R e s e r v e .........................

.......$

306,162.23
123,796.12
39,798.32

$ 353,294.54
122,024.96

T o ta l L iability and R e se rv e s .$ 469,756.67

$ 531,905.96

C om m issions and A ccrued E xp.

Bond Supervision


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Federal Reserve Bank of St. Louis

a

COMPARATIVE FINANCIAL STATEMENT

Excellent Progress

V incent Cullen, p resid en t of N a­
tion al S u rety C orporation, has a n ­
nounced th a t Vice P re sid e n t R ussell
A. A lgire has been given gen eral su­
pervision over th e H om e Office D ep art­
m en ts of N ational S u rety w hich h a n ­
dle fidelity bonds, b la n k e t bonds, and
b u rg la ry in su ran ce including forgery,
frau d and plate glass. Sam Romolo,
for m an y y e a rs a ssista n t to Mr. Algire,
has been appointed m an ag er of the
B u rg lary D epartm ent.
Mr. A lgire has been recognized for
m any y ears as an o u tstan d in g figure
in th e developm ent of b u rg la ry in s u r­
ance. H e has been noted for his in ti­
m ate acq u ain tan ce w ith th e problem s
in th e field an d has sponsored new and
valuable form s of protection. H e has
been in close touch w ith th e problem s

*

56,586.46

C apital P aid -u p ................. . ....... $
S urplus ....................................

200,000.00
150,000.00

$ 200,000.00
200,000.00

C o ntingency R eserve

112,202.64

82,035.71

462,202.64

$ 482,035.71

T o ta l C apital and L ia b ilitie s .$ 931,959.31

$1,013,941.67

. ...

S urplus to P olicy h o ld ers . .

...... $

HAUIK€Y€
c a s u a l t y com pAny
D es m o in e s . io u m

Full Coverage A utom obile — Compensation — Liability

A
Northwestern Banker

r

February 19bG

of th e ag en t and b ro k er in th e field.
H e is natio n ally know n as an a u th o r­
ity on his special fields in C asualty
an d S u rety coverage.

Mill Owners Gain
The Mill O w ners M utual F ire In s u r­
ance Com pany of Iow a h ad a to tal of
$538,471,885 in in su ran ce in force at
th e close of 1939, J. T. Sharp, long­
tim e p resid en t of th e com pany, said
a t th e an n u al m eeting.
Mr. Sharp stated th a t th e re w as a
gain of $42,921,782 in in su ran ce in
force d u rin g 1939 and th a t prem ium
incom e w as $2,001,373—a gain of ap­

proxim ately 6 p er cent over th a t of
1938, w hich w as $1,891,963.
A ssets show ed a to tal of $2,845,233,
as com pared w ith $2,731,039 for 1938,
and prem ium reserv es advanced from
$1,513,636 in 1938 to $1,649,804 in 1939,
he reported.
Mr. S harp and H. B. Carson, secre­
tary , w ere re-elected officers of the
com pany. B oard m em bers re-elected
w ere, P aul Ketels, Sioux City; C. M.
Reed, G uthrie Center; and Mr. Carson.

New Contracts
T he insurance associations carrying
fire insurance on th e pro p erties of

T he “St. P a u l” G roup
D ecem ber 31, 1939

SAINT PAUL-MERCURY INDEMNITY COM PANY
ST. PAUL, MINNESOTA

Fourteenth A nn u al Statem ent
ASSETS
Bonds ................................................................................................... .$ 9,828,534.51
M ortgage Loans ................................................................................
C ash a n d Bank Deposits.................................................................
Premiums in course of collection, not over 90 d a y s ............... .
Due from Re-insurance Com panies...............................................
Accrued Interest ..............................................................................

396,303.00
25,000.00
470,740.70
1,589,235.87
38,567.27
86,971.13

$12,435,352.48

Reserve
Reserve
Reserve
Reserve
Reserve
Reserve
C apital
Surplus

LIABILITIES
for U nearned Prem ium s................................................. ...$3,393,477.34
for Losses a n d E x p en ses.............................................. . 3,164,444.33
500,000.00
for Unknown an d Unreported Losses.......................
265,000.00
for T axes............................................................................
372,051.75
for U npaid Commissions, etc.......................................
195.198.42
for D epreciation...............................................................
Stock ......................................................... $1,000,000.00
4,545,180.64
.................................................................... 3,545,180.64
$12,435,352.48

Securities carried a t $1,238,760.00 in the above statem ent a re deposited
for purposes required b y law .

O w ned, O perated and Controlled b y St. Paul Fire and M arine Ins. Co.

ST. PAUL FIRE AND MARINE INSURANCE COMPANY
ST. PAUL. MINNESOTA

Seventy-fifth A nnual Statem ent
A ssets .................................................................................................. $43,680,712.06
Surplus to Policyholders................................................................. . 29,867.435.08
Other Liabilities ............................................................................... 13,813,276.98

MERCURY INSURANCE COMPANY
ST. PAUL, MINNESOTA

Fifteenth A nnual Statem ent
.$ 6,464.708.79
Surplus to Policyholders................................................................. . 3.958.127.52
2,506,581.27
Other L iab ilities.............................................................. ..................

The "St. Paul" Group
Extends A ll Facilities
Its Expert Service
to All Bankers

Northwestern Banker


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Federal Reserve Bank of St. Louis

February 1940

th e Hom e O w ners’ Loan C orporation
and those of m any of its b o rrow ers
have agreed to w aive th e cancellation
clause covering existing co n tracts to
perm it the HOLC to m ake new con­
tracts in the near future, th e F ed eral
Home Loan B ank Board announced.
A deadline of F e b ru a ry 15 th erefo re
has been set for the subm ission of all
proposed contracts, officials of the
B oard said. F u ll consideration w ill be
given to all proposals received p rio r
to th a t date, b u t fu tu re negotiations
w ill be confined to com panies or
groups of com panies w hich observe
the deadline.
Both stock and m u tu al com panies
have show n keen in te re st in th e HOLC
insurance, according to officials of th e
B ank Board, and a series of confer­
ences and a large volum e of co rre­
spondence w ith in su ran ce officials
have resu lted in definite progress. The
B ank B oard re ite ra ted th a t proposals
for th e in su ran ce—the larg est single
item of fire insurance w ritte n in th e
U nited S tates—are open to all stock
and m u tu al com panies, or groups of
com panies, w ritin g insurance in th is
country.
F o r th e p ast several years, HOLC
insurance has been placed th ro u g h th e
Stock Com pany A ssociation and th e
M utual Com pany Association. On Oc­
tober 13, 1939, th e B ank Board gave
notice to th e two associations of can­
cellation of th e existing contracts, to
take effect May 1, 1940. In negotia­
tions w hich followed, how ever, both
associations agreed to w aive th e M ay
1 cancellation clause to allow th e
HOLC to m ake new co ntracts as soon
as th ey could be agreed upon.
The B ank B oard feels th a t p ast
HOLC insurance costs have been ex­
cessive in proportion to th e risk s in ­
volved and th a t any new agreem ents
should re p re se n t a su b stan tial m odi­
fication of term s, both in th e in te re st
of borrow ers and in protection of p u b ­
lic funds en tru ste d to th e C orpora­
tio n ’s care. Its view s w ere expressed
to rep resen tativ es of th e Stock Com­
p any and M utual Com pany A ssocia­
tions and th e N ational A ssociation of
In su ran ce A gents in conferences last
m onth and subsequently announce­
m en t w as m ade th a t all in su ran ce car­
riers w ere eligible to propose con­
tracts.
Complete inform ation regarding the
scope and type of fire insurance cover­
age is available for an y in terested fire
in su ran ce carrier. The contracts w ill
cover insu ran ce on all p ro perties ac­
quired by th e C orporation th ro u g h
foreclosure and also insurance on b e­
h alf of HOLC m ortgagors placed at
th e ir req u est by th e Corporation.

29

Annual Meeting
Carl P. R utledge w as re-elected p re s­
id en t of th e F a rm e rs M utual H ail In ­
su ran ce A ssociation a t th e an n u al
m eetin g of th e o rganization held in
Des Moines.
O ther officers re-elected w ere R. T.
R utledge, vice p resident; W. A. R u t­
ledge, secretary , and E. B. R utledge,
tre a su re r.
M ax D. R utledge, w hose te rm as
directo r expired, also w as re-elected.
A n e t gain of $151,000 in su rp lu s w as
rep o rted , giving th e com pany a net
su rp lu s of $1,189,000. A ssets now to tal
$1,488,000.
T he m eeting, m ark in g th e fortysev en th a n n iv e rsa ry of th e com pany,
honored W. A. R utledge, one of th e
founders.
S peakers a t th e b an q u et included
C harles F isch er, Iow a in su ran ce com ­
m issioner; C. Sm rha, N ebraska direc­
to r of insurance, and H erschel Langdon, atto rn ey .
T h ere w ere 350 agents an d guests a t
th e b an q u e t w hich concluded th e m eet­
ing. Those a tte n d in g cam e from Iowa,
N ebraska, W isconsin, Ohio and Mis­
souri.

creased its assets $119,822.29 d uring
th e p ast y ear and now has to tal assets
of $1,824,773.62. He also rep o rted a net
gain of $24,509,106 in insurance in
force d uring th e p ast 'y ear, bringing
to tal in su ran ce in force to $517,309,647.
T ow n M utual is th e larg est exclusive
tow n dw elling in su ran ce com pany in
A m erica, P resid en t Jones reported.

BANK EARNINGS
(C ontinued from page 13)
If used equipm ent is accepted as a
p a rt dow n-paym ent, th e actual cash
paid should be sufficient so th a t the
p u rch aser from th e s ta rt has a new
in v estm en t and th e dealer receives

some cash in addition to th e second­
h and equipm ent tak en in trade.
E ith e r conditional sales contracts or
note and ch attel m ortgage are used
and should be filed as is custom ary.
T he ideal paym ent program calls
for equal m onthly paym ents over th e
life of th e contract. It is recognized,
how ever, th a t incom e from ag ricu ltu re
m ay be dependent upon h arv estin g of
crops and th erefo re it is desirable to
arran g e m atu rities, if possible, so th a t
th ey w ill coincide w ith crop retu rn s.
D epending upon th e b o rro w er’s in ­
dividual situ atio n term s of paym ent
should be adjusted to conform w ith
th e seasons of th e y ear w hen he is

Moeller Married
L eo n ard R. M oeller, executive state
agen t for th e St. P aul F ire & M arine
In su ra n c e Com pany, w as m a rrie d last
m o n th to Lucille H onebrink. The
w edding took place in Iow a and th e
couple took th e ir honeym oon in sev­
eral of th e so u th e rn states. W hen he
re tu rn s he w ill again be calling on his
m an y b a n k e r frien d s in th e north w est.
Miss H o n eb rin k w as an em ploye in
th e supply d e p a rtm e n t and is a niece
of W alter H. H onebrink, vice p re si­
dent, The F irs t N ational B ank, St.
Paul.

Engaged for half a century
in m aking m en and th eir
e n te r p r ise s m ore secu re.

Jones Re-elected
B.
Rees Jo n es w as re-elected p re si­
den t of th e T ow n M utual D w elling In ­
suran ce C om pany a t th e 47th an n u al
m eeting of th e com pany held at th e
hom e offices in Des Moines.
O ther officers re-elected were: L es­
te r T. Jones, vice p resident; F ra n k H.
D irst, secretary , and G ran t M cP herrin,
tre a su re r. D irectors re-elected were:
O. B. M cK inney, D enver, Colorado; R.
Lloyd Young, Oelwein, Iowa; R. J. Sul­
livan, N ew H am pton, Iowa, and H a rry
F. Gross, Des Moines.
G eneral ag en ts and cashiers from
Iowa, Colorado, M innesota, and South
D akota a tte n d e d th e a n n u a l m eeting,
w h ich follow ed a one-day a n n u al sales
conference.
In his a n n u a l re p o rt P re sid e n t Jones
rep o rte d th a t th e com pany has in ­

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Federal Reserve Bank of St. Louis

FIDELITY and DEPOSIT
CO M PAN Y OF M A R Y LA N D , BA LTIM O R E
FIDELITY,
BANKERS

SURETY

BLANKET

AND

BONDS

BURGLARY, R OB B E R Y , FORGERY
AND

GLASS

INSURANCE

Northwestern Banker

February 1940

30
norm ally w ith funds.
M any are
bo u g h t on th e m o n th ly p ay m en t plan.
In o th er w ords, the term s of pay m en t
should be ad ju sted to m eet th e b o r­
ro w e r’s req u irem en ts w ith m axim um
m a tu ritie s not to exceed tw enty-four
m o n th s from date of purchase.
Because of th e u n c e rta in ty of crop
production, b an k s often find it v ery
desirable in m aking in stallm en t loans
to include additional secu rity oth er
th a n th e tra c to r itself. A few head of
cattle or g rain in th e bin w ill
stre n g th e n th e loan and in m ost cases
farm ers do n o t object to giving th is
additional security. In certain cases,
ch attel law s are such th a t reposses­
sion and recovery by sale of equip­

m en t is not possible. T herefore, it is
hig h ly im p o rtan t th a t in such cases
adequate additional secu rity be ob­
tained.
As in every type of credit th ere
w ill be certain defaults and in such
an event th e banks should obtain ad­
ditional security before an extension
is g ran ted and as a general policy
th a t no paper should be allow ed to
ru n over n in ety days p ast due. A nti­
cipating some possessions it is d esir­
able th a t a repu rch ase agreem ent be
had w ith th e dealer w hen it is possible
to m ake such arran g em en ts. In some
cases arran g em en ts m ay be m ade w ith
th e dealer for holding back a reserve
to p ro tect th e b an k against th e pos­

Financially Sound
A nother su ccessfu l year has closed, w ith an increase in
resources and policies in force.
Liberal benefits w ith lo w est possible cost have enabled us
to provide sound protection to select risks for 35 years past.
FINANCIAL STATEM ENT
D ecem b er 3 1 , 1 9 3 9
RESO U R C ES
%
3 5 .3
Casli
14.3
U. S. G overn m en t S ecu rities
State, C ounty and M unicipal B o n d s . __ 2 8 .6
2 .8
P u b lic U tility B on d s
4 .7
R ailroad B onds
2 .4
First M ortgage Loans
5 .8
R eal E state (In c lu d in g Office B ld g .) _ _
O ther S ecu rities (In c lu d in g L ife
5 .2
E n d o w m en ts)
0 .3
A ccrued In terest R eceivable
_.
0 .6
A d van ce P avm en ts by M em bers
1 0 0 .0 0

TO TAL

$ 1 1 2 ,9 2 8 .1 7
4 5 ,4 0 0 .0 0
9 1 ,1 9 0 .0 0
9 ,0 0 0 .0 0
1 5 ,0 0 0 .0 0
7 ,7 7 0 .0 0
1 8 ,6 0 0 .0 0
1 6 ,7 8 4 .2 4
9 7 8 .2 0
1 ,9 8 5 .0 0
$ 3 1 9 ,6 3 5 .6 1

LIABILITIES
D isa b ility Claim s R ep o rted , b u t P r o o fs not Receiv ed _______________________________________ $ 1 4 ,3 5 0 .0 0
D eath C laim s R ep orted and A w aiting P r o o fs —
9 ,0 0 0 .0 0
U n ea rn ed A s s e s s m e n t s ------------------------------------1 ,9 8 5 .0 0
R eserve fo r T a x es, B ills, e tc .----------------------------2 ,9 9 1 .0 0
R E SE R V E FO R PR O TEC TIO N OF M E M B E R S . 2 9 1 ,3 0 9 .6 1
TO TA L

_____________________________________ $ 3 1 9 ,6 3 5 .6 1
POLICIES IN FORCE 2 5 ,6 3 9

For further details write

MINNESOTA COMMERCIAL MEN’S
ASSOCIATION
P A U L C L E M E N T , Secretary

2550 Pillsbury A ve.

*

Minneapolis, Minnesota

sibility of loss on unexpired contracts.
If th e b an k er applies all of th e
usual dependable yard stick s to th e ex­
tension of credit for th e financing of
pow er farm ing equipm ent, th en th is
type of credit offers no m ore hazards
th a n any o ther type.

NEWS A N D VIEWS
(C ontinued from page 15)
A gainst W ar,” w as h an ding out the
pam phlets.
The opening p arag rap h said, “We,
young people of th e T w in Cities, are
sincerely in terested in m ain tain in g
peace and n ot having A m erica draw n
into the w ar. Therefore, we give you
th e follow ing facts about Mr. Duff
Cooper. R em em ber w ho he is w hile
he speaks, and w eigh all facts care­
fully.”
H ow ever, afte r we listened to Mr.
Cooper we found no propaganda th a t
suggested we come in on th e side of
E ngland.
Am ong o th er things, he said th a t
G erm any w as n ot to be tru ste d w ith
arm s, and th a t th ey should not be
allow ed again to bear arm s unless she
can prove she w ill use them only for
th e b ette rm e n t of civilization. “W ith in
th e m em ory of any 80 y ear old m an,
G erm any has th ree tim es ta k e n up
arm s and started a w a r,” he pointed
out.
He also said th a t the G erm an people
w ould have voted against th e steps
leading to w ar, if th ey had been given
th e op p o rtu n ity at any tim e d u rin g the
last ten years.
H. B. H am m er, vice p resid en t of th e
S tate B ank of W apello, Iowa, an d sec­
re ta ry of th e organization of Officers
of County B ankers A ssociation, in
speaking before th e m id-w inter b a n k ­
ing conference said th a t according to
a recen t su rv ey th a t he had m ade 86
per cent of th e banks in th e state are
now engaged in in stallm en t lending
of a type once left alm ost e n tirely to
th e sm all loan com panies and o ther
agencies.
K enton R. Cravens, vice presid en t
of th e Cleveland T ru st Com pany and
presid en t of th e B ankers A ssociation
for C onsum er Credit, in speaking be­
fore th e m id-w inter b an king confer­
ence a t Des Moines, said th a t 75 p er
cent of th e banks now having separate
d ep artm en ts for C onsum ers Credit
have opened these dep artm en ts w ith in
th e last 8 years, afte r th e depression
cut banking com m ercial credit volum e
about 50 p er cent.
The 20 largest banks in the U nited
States, according to th e last b an k call,

are located in th e follow ing cities: 12
N orthwestern Banker

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

February 19kO

31
in N ew York, 3 in Chicago, 1 each in
Philadelphia, D etroit, Los Angeles,
Boston an d San Francisco. T he de­
posits of th ese b an k s for 1938 and
1939 are as follows w ith th e last six
ciphers om itted (000,000):
1939 1938
Chase N ational B ank
$2,803 $2,234
N ational City, N ew Y ork 2,331 1,835
G u a ra n ty T ru st, N ew Y ork 2,088 1,619
B ank of A m erica,
San F ran cisco
............ 1,482 1,437
C ontinental Illinois,
Chicago
.................. 1,324 1,257
B an k ers T ru st, N ew Y ork 1,125
912
C entral H anover,
N ew Y o rk
1,106
939
F irs t N ational, Chicago
1,053
935
M an u factu rers T ru st,
N ew York
762
655
F irs t N ational, Chicago
743
662
Chem ical B ank & T ru st,
N ew Y o rk
737
567
Irv in g T ru st, N ew Y ork
695
593
F irs t N ational, N ew Y ork 628
530
J. P. M organ & Co.,
N ew Y o rk
619
521
B ank of M anhattan,
N e w Y o r k ........................
609
522
S ecu rity -F irst N ational,
Los A ngeles
............
580
566
P hilad elp h ia N ational
564
434
N ational B ank of D etro it
462
391
New Y ork T ru st Co.
419
367
N o rth e rn T ru st, Chicago
369
339

m irer of his “boss” w hen he w orked
in th e big b an k th a t w hen his wife
p resen ted him w ith a baby boy re ­
cently th ey nam ed him Jam es E. H am ­
ilton W right.
N orm an B. Shaffer has tossed th e
“a ssista n t” in his title out th e w indow
an d has now become a full fledged
vice president. T his is an honor w hich
N orm an w ell deserves and his m any
friends w ill rejoice in th is recognition
of his fine qualities.

A com pany which an y b ank can be proud to rep re­
sent or recom m end . . . serving Iowa, M innesota,
N ebraska, the D akotas a n d other m idw estern states.
OFFI CERS

FINANCIAL STATEMENT: December 31, 1939

JOHN A. GUNN
P r e s id e n t a n d T r e a s u r e r

JOHN F. HYNES

ASSETS

S e c re ta ry

Bonds (Market V a lu e )............................................................... $2,731,065.00

J. W. GUNN
V ic e P r e s id e n t

DIRECTORS

N o b o n d s e v e r o w n e d b y th e c o m p a n y h a v e b e e n
in d e f a u l t a s to in t e r e s t o r p r in c ip a l .

DR. D. E. BAUGHMAN

D avid H. R eim ers, p resid en t of th e

L ive Stock N ational B ank of Chicago,
had so m uch success w ith th e ch a rt
and data he p rep ared p e rta in in g to th e
live stock prices, he has now issued
sim ilar d ata on th e “T ren d of H og and
Corn P ric e s”. If you have n o t alread y
received a copy of th is w e are sure
th a t Dave w ould be glad to send one
to you w ith his com plim ents.

P re s ., F o rt D o d g e S e r u m Co.
F o rt D o d g e , I o w a

ANSELM FRANKEL
P re s .,

F r a n k e l C lo th in g
D es M o in e s , I o w a

C u r r e n t b a l a n c e s d u e fro m a g e n t s a n d p o lic y h o ld e r s .

P re s ., C itiz e n s F u n d F ire
In su ran ce C om pany
R e d W in g , M in n .

Interest A c c r u e d ..........................................................................
F ederal S avin gs C ertificates...................................................
County W arrants..........................................................................

DR. L. E. KELLEY
P h y s i c ia n a n d S u r g e o n
D es M o in e s , I o w a

FRANK KOHRS

o.

b.

W. Z. PROCTOR
A tto r n e y - a t- L a w
D es M o in e s , I o w a

E v e re tt L. W right, p re sid e n t of th e

City S tate B an k of H opkinton, Iowa,
abo u t eig h t or te n y ears ago u sed to
be em ployed in th e tra n s it d e p a rtm e n t
of th e M erchants N ational B ank of
Cedar R apids. H e w as such an ad­

S e c y ., I o w a V a lv e C o.
O s k a lo o s a , I o w a

THOS. H. TURK
F a rm e r
O m ah a , N eb rask a

M. J. WILKINSON
B ra n c h M a n a g e r
W ic h ita , K a n s a s

R. L. WOOD
T r e a s ., W o o d B ro th e rs
T h re sh e r C o m p an y
D es M o in e s , I o w a

R eserve for L o s s e s ......................................................................$1,537,045.95
F u n d s s e t a s i d e to f u lly p a y a l l in c u r r e d a n d e x ­
p e c te d lo s s e s .

R eserve for U nearned Prem ium s............................................ 1,148,150.62
F u n d s s e t a s i d e to r e t u r n to e v e r y p o lic y h o ld e r th e
u n e a r n e d p r e m iu m in e v e n t of c a n c e ll a ti o n of h is
p o lic y .

Other R e s e r v e s ............................................................................

251,692.37

T a x e s , C o m m is sio n s, R e in s u r a n c e , etc.

TOTAL RESERVES........................................................................ $2,936,888.74
R eserve for C ontingencies........................................................
100,000.00
Surplus ............................................................................................
772,790.85
$3,809.679.59

E mployers M utual
CASUALTY COMPANY - DES MOINES
John

A

.

Gunn,

President

AUTOMOBILE INSURANCE • WORKMEN S COMPENSATION . TOWN II
GENERAL LIABILITY • ELEVATOR INSURANCE • PLATE GLASS

Northwestern Banker

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

22,492.40
10,000.00
2,792.66

RESERVES

McKin n e y

G en eral A gent
D e n v e r , C o lo r a d o
S p e c ia l R e p r e s e n t a ti v e
D es M o in e s , I o w a

17,370.00
128,451.15
418,647.54
478,860.84

TOTAL ADMITTED ASSETS......................................................$3.809,679.59

P re s ., K o h rs P a c k i n g C o.
D a v e n p o r t, I o w a

H. W. READ

H en ry G. K ram er, vice p resid en t of
th e City N ational B ank of C linton, h ad
his son, A llen K ram er, w ith him at
th e Iow a B an k ers first a n n u a l MidW in te r C onference w hich w as held in
Des M oines recently.
A llen g rad u ated from G rinnell Col­
lege th is y ear, an d has recen tly be­
come associated w ith W olf an d Com­
pany of Des Moines, w ell-know n firm
of accountants.

Co.

Stocks (Market V alue)..............................................................
R eal Estate (Home Office Building)........................................
D eposits in B a n k s........................................................................
Premiums R eceivab le (Not Past Due).................................

H. L. HJERMSTAD

GEO. E. PATTERSON

In South A m erica th e ratio of de­
fau lt to in v estm en ts in dollar bonds
had been 70 p e r cent.

E. O. F en ton , presid en t of th e A m er­
ican In stitu te of B usiness of Des
Moines, has ju st issued “Y our 1939 Tax
R etu rn s” w hich gives th e highlights
of th e F ed eral tax law s w hich affect
them . Included in th is folder are in ­
dividual norm al incom e tax, individual
surtax, corporation tax, capital stock
tax, excess profits tax, state and gift
tax and payroll tax. If you have not
received one of these folders we are
sure th a t Mr. F en to n w ill be glad to
send you one w ith his com plim ents.

February 19W

32

Manufacture

r s
TRUST COMPANY

Condensed S
‘ tatement o f Condition as at close oj business

D ecem ber 30, 1939
RESOURCES
Cash and Due from B an k s.................. $267,372,518.84
U. S. Government S ecurities...............
282,493.189.93
State and Municipal B onds..................
18.941,859.61
Stock of Federal Reserve Bank............
2,254,200.00
Other S ecu rities....................................
52,733,411.82
Loans, Bills Purchased and
189,415,409.78
Bankers’A ccep tan ces........................
M ortgages................................................
19,786.072.17
Banking H o u s e s ....................................
12,862.189.52
Other Real Estate E q u ities............... ..
3.875,913.21
Customers’ Liability for Acceptances .
8,773,476.51
2,645,979.47
Accrued Interest and Other Resources
$861.154,220.86
LI ABI LI TIES
Preferred Stock . . . . $ 9,118,520.00
Common S to c k ............ 32,998,440.00
Surplus and
Undivided Profits . . 40,151,108.92
R eserves..................................................
Reserve for Preferred Stock Sinking
F u n d .....................................................
Common Stock Dividend
(Payable January 2, 1 9 4 0 ) ...............
Preferred Stock Dividend
(Payable January 15, 1 9 4 0 ) ............
Outstanding Acceptances.....................
Liability as Endorser on Acceptances
and Foreign B ills .............................
D ep o sits...................................................

W infield C. Jackley, p resid en t of
Jackley and Com pany of Des Moines,
and p ast presid en t of th e Iow a In v e st­
m ent B ankers A ssociation, has a
hobby w hich he plays ra th e r th a n
rides and it is the trom bone. He has
been “kidded” now and th en by his
fellow in v estm en t bankers, including
W alter E . Yieth of D avenport, th e
new ly elected presid en t of the state
organization. B ut ju st to prove th a t
W infield know s his trom bone he w as
recen tly elected as m anager of the
S hrine band in Des Moines, w hich
proves th a t he is “to o tin g ” rig h t along.

Named Director
Cecil W. Slocum w as elected secre­
ta ry and a director of B urns, P o tte r &
Co. at a m eeting of th e board in
Omaha, according to an announcem ent

82,268.068.92
4,343,678.49
54,376.11
824.959.00
227.963.00
9,543,607.90
1,128,323.22
762.763,244.22
$861,154,220.86

DIRECTORS
EDWIN M. ALLEN

CHARLES FROEB

P resid en t, M a th ie s o n
A l k a l i W orks, In c .

CHARLES K. BEEKMAN

P resid en t, L in c o ln
S a v in g s B a n k

PAOLINO GERLI
V ice-P resident,
E . G erli & C o., Inc.

B eekm an, B ogue,
S tep h e n s & B la c k

EDWIN J. BEINECKE

HARVEY D. GIBSON

C h a irm a n , S p e r r y &
H u tc h in s o n Co.

CHARLES L. HOGAN

P re sid e n t
P resid en t, L o n e S ta r
C em ent C orporation

EDGAR S. BLOOM
P resid en t, W estern
E le c tr ic C o., Inc.

JOHN L. JOHNSTON

CHARLES A. DANA

P resid en t,
L a m b ert C o m p a n y

P resid en t, Spicer
M a n u fa c tu r in g Corp.

ELLIS P. EARLE
P resid en t, N ip is s in g
M in e s Co.

HORACE C. FLANIGAN
V ice-P resident

JOHN M. FRANKLIN
P re sid e n t, U n ite d S ta te s
L in e s C o m p a n y

OSWALD L. JOHNSTON
S im p so n T h a ch er &
B a r tle tt

CHARLES L. JONES
E x e c u tiv e V ice-P resident,
N a tio n a l D istillers
P roducts Corp.

GEORGE MACDONALD
C h a irm a n , F ed e ra l H o m e
L o a n B a n k o f N e w Y o rk

SAMUEL McROBERTS
N ew Y o rk C ity

JOHN P. MAGUIRE
P resid en t, J o h n P . M a g u ir e
& C o., In c .

C. R. PALMER
P resid en t, C lu e tt, P ea b o d y
& C o., In c .

GEORGE J. PATTERSON
P resid en t, S cra n to n &
L e h ig h C oal Co.

HAROLD C. RICHARD
C h a irm a n , G eneral B ro n ze
C orporation

HAROLD V. SMITH
P resid en t, H o m e
In su ra n c e Co.

ERNEST STAUFFEN, JR.
C h a irm a n , T r u st C o m m itte e
P resid en t, C urtiss- W r ig h t
C orporation

HENRY C. VON ELM
V ice-C hairm an o f th e B o a r d

67 B A N K IN G O F F I C E S IN G R E A T E R N E W Y O R K

European Representative Office: 1, Cornhill, London, E. C. 3
Member Federal Reserve System
Member New York Clearing House Association
Member Federal Deposit Insurance Corporation
B o th C om m on a n d P refe rre d shares h ave a p a r va lu e o f $20 each.
T he P refe rre d is c o n v ertib le in to a n d h a s a p refere n ce over the
C om m on to th e e x te n t o f $ 5 0 p e r share a n d a ccrued d ivid en d s.


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

February 1940

by A. C. P o tter, president. Mr. Slocum
joined th e firm in 1928 after g rad u a­
tion from an Omaha high school. He
is presid en t of th e Om aha Ju n io r
C ham ber of Commerce and w as active
as ch airm an in 1939 of th e Red Cross
cam paign.

GUY W. VAUGHAN

Principal Office: 55 Broad Street, New York City

Northwestern Banker

C E C IL W . S L O C U M

Drovers, Chicago
A t th e an n u al m eetings of the
D rovers B anks, Chicago, all of th e di­
rectors and officers w ere re-elected
w ith th e exception of Jo h n P. Oleson,
w ho retired as th e d irector of both th e
D rovers N ational B ank and D rovers
T ru st and Savings Bank. The D rov­
ers N ational B ank declared a sem i-an­
nual dividend of 3 p er cent, payable
IV2 p er cent on A pril 1st to stockhold­
ers of record on M arch 30, 1940, and
IV2 per cent on Ju ly 1st to stockhold­
ers of record Ju n e 29, 1940.

Backlog of Unfilled
Orders W ill Mean

Continued Industrial A ctivity
UR index of business activ ity
continued to advance sh arp ly
in D ecem ber for th e sev en th
consecutive m onth. It stan d s at 112.4
(p relim in ary ) as com pared w ith 107.5
(revised) for N ovem ber, 86.9 for May
and A pril, th e y e a r’s low point, and
93.3 for D ecem ber, 1938. Since last
May, it has rise n n early 30 p er cent
an d is only 3.5 points below th e 1937
high m ark. Only one com ponent of
th e com bined index, coal production,
failed to p articip ate in th e D ecem ber
recovery.
As h as been th e case d u rin g m ost
of th e recovery, d urable goods in d u s­
trie s continued to lead th e w ay in
Decem ber. A verage o u tp u t of these
ind u stries, before allow ance for long­
term g row th, is now slig h tly above
th e record h igh level for 1929 and
n early double th a t at th e m iddle of
1939.
A utom obile o u tp u t increased sh a rp ­
ly largely because of th e resu m p tio n
of large scale operations by C hrysler.
A ssem blies have been placed a t the
h ig h est for an y D ecem ber on record,
w ith th e exception of 1936. C onsum er
dem and for m otor cars continued to
m ake a good show ing w hile d ealers’
stocks rem ain ed a t a low level. A
fairly sizable volum e of unfilled orders
w as carried over into th e new y e a r
and th e in d u s try ’s stro n g statistical
position h as been reflected in heavy
o u tp u t of cars in Ja n u a ry . In fact,
it is believed th a t final figures w ill
reveal th a t a new J a n u a ry o u tp u t
record has been established.
Steel m ill o perations declined to 85.6
per cent of capacity from 93.3 p e r cent
in N ovem ber, b u t norm ally a sh a rp e r
recession is recorded in th is period.
F o r Ja n u a ry , how ever, th e tre n d has
been dow nw ard alth o u g h no m ark ed
decrease in o perations in th e nearb y
fu tu re is indicated. Mills have suffi­
cient o rd ers on th e ir books to g u a ra n ­
tee a h ig h level of activ ity for an o th e r
m o n th or m ore, a fte r w hich buying
w ill have to revive considerably to
p re v e n t su b sta n tia l declines.
An o u tstan d in g favorable featu re of
th e 1939 b u siness reco v ery has been
th e high volum e of dem and for ma-

Prepared for

O


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

TH E

N O RTH W ESTERN

BA N KER

b y an organization of
le a d in g e c o n o m is t s

ch in ery and m achine tools. R ecently
new business has been considerably
slow er b u t th is is p a rtly due to the
fact th a t m ost producers booked so
m uch business in S eptem ber and Oc­
to b er th a t th ey are unable to prom ise
delivery on additional orders for m any
m onths ahead. As a re su lt of these
backlogs, production of m achine tools
has risen to n ear capacity levels. At
th e beginning of th e year, th e in d u stry
w as operating m oderately above the
50 p er cent of capacity m ark; for
December, th e figure w as slightly over
93 p er cent.
P roduction of nondurable goods con­
tin u es at a high level b u t has show n
co m paratively little change in the last
four m onths. A verage o u tp u t of these
goods, m oreover, still has not reached
th e high level of th e 1936-37 business
recovery. C otton consum ption by m ills
rose to n ear record-breaking levels in
Decem ber, afte r allow ance for season­
al fluctuations, b u t silk and rayon
consum ption declined. Silk’s show ing
w as v ery poor, th e in d u stry having

been h a rd h it by the high level of
silk prices. P ap er m ills continued to
operate n ear capacity levels, on a
seasonally ad ju sted basis, w hile the
boot and shoe in d u stry is estim ated to
have established a new high o u tp u t
record in 1939.
T he tre n d of retail trad e indicates
th a t th e high volum e of production of
consum ers goods has n ot piled up as
in ventories b u t for th e m ost p a rt has
been rapidly absorbed. Sales rep o rts
of m any re tailers revealed the best
D ecem ber show ing on record and if
u n it sales figures w ere available th e
pictu re w ould appear even brighter.
A fter allow ance for retail price
changes, it is found, for exam ple, th a t
d ep artm en t store sales in D ecem ber
w ere above th e hig h est m o n th for 1929
and th a t the gain in sales for th e last
six m onths of the year approxim ated
th a t in nondurable goods production.
N ew buying by in d u stry has fallen
off sh arp ly from th e high Septem berOctober level although it appeared for
a w hile in D ecem ber th a t th e tre n d
w ould be reversed. The sp u rt in b u y ­
ing, how ever, w as largely re stricted to
cotton cloths and the m ovem ent failed
to spread. N otew orthy w as the fail­
ure of such im p o rtan t in d u strial raw
m aterials as n o n ferrous m etals to par(T u rn to page 35, please)

34

The Month s Market Maneuvers
Prepared for Î H E N O R T H W E S T E R N B A N K E R by J A M E S H . C L A R K E ,
Assistant V ic e President, American National Bank & Trust Company, Chicago

B U SIN ESS

Ja

m es

H.

clark e

and the m arkets
d rifted low er in Jan u ary .
The d o w n tren d in business w as
th e n a tu ra l reaction after the
sh arp u p tu rn of th e previous
four m o n th s—th e low er prices
for bonds and stocks w ere the
re su lt of n u m erous u n certain ties
h ere and abroad, and th e fear
com plex th a t such u n certain ties
gen erate

S teel activity in January w as approxim ately 84%
of theoretical capacity—a drop of about ten points
from early D ecem ber. On the other hand, 84% is
a good rate—but n ew orders w ere about 50% of
sh ip m en ts b ein g m ade and th e steel com panies
w ere d iggin g into th eir backlogs. T hese backlogs
are sufficiently large to provide for su b stan tial pro­
duction for an oth er m onth or so—then w ar orders
or n ew dom estic com m itm ents m ust appear— or a
sharp d ecline w ill result. The F ederal R eserve
Board In dex of In du strial Production, w hich
reached a high of 128 in D ecem ber, is probably
around 120 to 122 n ow —the official January figure,
of course, w ill not be available u n til late in F eb ru ­
ary. The 120 to 122 is our gu ess—w h eth er it p roves
accurate or not it is a certain ty from actual figures
on hand that the b u sin ess trend is d ow nw ard as
w e w rite th is on the m orning of Saturday, January
tw en ty-seven th .

The sto ck m a rk e t reflected the u ncertainties by
slipping low er during the m onth. I n the tw entytw o days of trading— up to last n ig h t’s close—ad­
vances w ere recorded in the Dow-Jones A verages
on ten days and declines on tw elve. On the first
day of trading of the n ew year, the industrial aver­
age stood at 150.24—yesterd a y’s close w as 146.61.
A s w e have m en tio n ed in earlier articles— the stock
m a rk e t reached its high since th e w a r on S ep tem ­
ber tw e lfth — since th a t tim e no gains have been
recorded. C onsidering the sharp u p tu rn in business
this has been su rprising and disappointing to its
follow ers— but the u n k n o w n factors loom so large
u n d er p resen t w ar conditions th a t the fa ith neces­
sary fo r a m a rk e t boom has not appeared to date.
Only a few of the large com panies have released
th e ir an n u al statem en ts for 1939—those w hich are
available are gen erally good. F o r instance, B eth ­
lehem Steel rep o rted $5.75 p er sh are on the com­
m on—com pared w ith a loss, a fte r p ay m ent of p re ­
ferred dividends, in 1938. The steel in d u stry ’s op­
eratio n s in th e final q u a rte r w ere p ractically at an
all-tim e peak—b u t th e stock m a rk e t continued to
be cautious. T he action of B ethlehem Steel stock


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Federal Reserve Bank of St. Louis

itself offers a fine exam ple of how disappointing
the stock m ark et has been. On S eptem ber eleventh
—a few days afte r th e w ar started —the stock sold
at 100. T his m o rn in g ’s opening w as 7 3 ^ . It is
tru e, of course, th a t stocks sell at a m uch low er
ratio to earnings in w ar tim es—b u t th is tim e it is
a p p aren t th a t th e m a rk e t is giving less credence
to possibilities th a n ever before.
W hile in v esto rs w ere receptive to som e bond re­
fun din gs in January— on the other hand m arkets
w ere g en erally low er. The G overnm ent m arket,
after an early display of strength, eased off as the
m onth progressed despite som e b uyin g by N ew
York City banks. The T reasury 2*4s of 1952/50,
w hich w ere quoted 106.2 on the elev en th of the
m onth, are around 105.15 th is m orning. Sim ilarly,
the lon g 2%s d eclined from 106.24 to 106.2. A p­
p roxim ately a h alf p oint selloff w as true th rou gh ­
out the lon ger issu es. A pparently there w ere no
ch an ges in the dom estic picture to cause th is—the
b est conjecture is th at the fear of a m arket slum p
in the spring w h en G erm any starts h er w ell adver­
tised drive— has b een resp onsible for the low er
prices.

There was one outstanding bit of refinancing in
January— at least notable fro m the m a rket recep­
tion standpoint— na m ely the offering of $30,000,000
of A m erican Gas and E lectric debentures. In v e s ­
tors scram bled fo r these bonds and all three m a tu ri­
ties w e n t to p rem iu m s over selling prices in quick
order. Other refundings during the m o n th included
an offering of $11,000,000 of L ibby, M cNeill and L ib ­
by 4s of 1955 and $10,962,000 of P ennsylvania W a­
ter and P ow er 3f i s of 1970. I t should also be noted
th a t the R ock Island refunded its eq uipm ent 3%s
of 1947 w ith 2V2s. There are n ot a great m a n y pros­
pective offerings on the S. E. C. calendar— except
fo u r or five issues w h ich have been deferred fro m
tim e to tim e— and a n ew registration of $25,000,000
of D ayton Pow er and L ig h t Com pany 1st 3s of 1940.
W ith business slow ly declining at th is point—
and th e w ar abroad deadlocked by w in te r—it is dif­
ficult for th e m ark ets to rally out of th e ir lethargy.
A nother month- or tw o should b rin g some sh arp
changes in th is situation. One has b ut to read th e
new spapers to realize th e u n certain ties in our m ar­
kets. Theodore R. G oldsm ith of W ashington, on
th e one hand, calls atten tio n to th e dangers in our
bond m ark et if th e w ar becomes intensified. A llan
M. Pipe of New York, on th e other, points out th e
m any factors w hich m ake for a continuance of low
m oney rates and high bond prices. W ith such dif­
ferences of opinion we had best continue a policy
of caution plus alertn ess in our bond portfolios.

35

C O N TIN U E D INDUSTRIAL
ACTIVITY
(C ontinued from page 33)
ticip ate in th e im provem ent. In th is
respect, th e outlook has been fu rth e r
dim m ed in recen t w eeks by w eakness
in both com m odity and secu rity prices.
F o r Ja n u a ry , in d u stria l activ ity has
show n a dow nw ard tre n d from th e
high D ecem ber level b u t no really
serious recession is indicated for th e
tim e being. It is w ell know n th a t
m any leading in d u stries enjoyed large
backlogs of unfilled o rders at th e yearend and, although th ese alone w ould
not p erm it record b reak in g operations,
th e y in su re a large volum e of o u tp u t
for th e n earb y m onths.
So long as w ar continues in E urope,
th e possibility of increased shipm ents
of m erch an d ise abroad m ust be tak en
into account in an ap p raisal of th e
business outlook. W h e th e r th e S pring
w ill w itn ess serious fighting and large
scale d estru ctio n of goods is a m a tte r
of conjecture. L atest ex p o rt figures
reveal a sh a rp rise in sh ip m en ts to
G reat B ritain and F ran ce . b u t the
m ovem ent has n o t approached suffi­
cient p ro p o rtio n s to influence our
econom y appreciably. The o u tsta n d ­
ing beneficiary so far has been the
airp lan e in d u stry . A ny signs, how ­
ever, of a m ark ed u p w ard tre n d in
E u ro p ean dem and w ould undoubtedly
be quickly reflected in dom estic orders
for m an y m aterials. On th e basis of
statistics now available, it does not
ap p ear th a t in v en to ries of m an u fac­
tu re rs have risen sufficiently to p re ­
v e n t such a developm ent from ra is­
ing produ ctio n schedules.
One u n u su a l aspect of th e 1939 b u si­
ness reco v ery w as th e absence of any
rev iv al in new capital m ark ets. In ­
stead of im p ro v em en t u su ally asso­
ciated w ith recovery, th e value of
co rporate issues floated in th e open
m a rk e t for th e purpose of new capital
actu ally declined and w as slig h tly be­
low th e low level for 1935. Some new
capital w as obtained th ro u g h p riv ate
placings w hile flush cash accounts
p e rm itte d m an y com panies to buy cap­
ital goods w ith o u t recourse to the
public. U n c e rta in ty created by E u ro ­
pean conditions u n d o u b ted ly h a m ­
pered th e new issue m a rk e ts b u t p ro b ­
lem s created by g o v ern m en t control
and reg u latio n s continued as a pow ­
erfu l brake.

Chase National
T he board of directo rs of th e Chase
N ational B ank elected R ichard H.
M ansfield a vice p resid en t of th e bank;
R alph N. H ard er, A rth u r D. Lane,
George H. R eeves an d L yon F. T erry ,
second vice presidents. L. A llan

B ucher, Jo h n E pprecht, Jam es J. Ma­
jor, David J. Nielson, H arold P arker,
S. A llen P ippitt, Joseph V. Scully, H.
H e rb ert S teinkam p and C harles H.
T om pkins w ere appointed assistan t
cashiers.

vanced from a ssistan t cashier to as­
sistan t vice president. Two new offi­
cers w ere nam ed—K arl Sagl and R ay­
m ond Scott now have th e positions
of a ssistan t cashiers. Mr. Scott is also
head of th e tra n sit departm ent.
D irectors of th e bank, w ho w ere all
re-elected, voted to tak e $100,000 u n ­
divided profit and $500,000 of reserves
and add to surplus, w hich now gives
th e b an k a capital stru c tu re of $12,000,000, th e largest any K ansas City
b ank has ever had. It is divided as
capital $8,000,000; su rplus $3,000,000;
and undivided profits $3,000,000.

Commerce Trust, Kansas City
A n um ber of changes in officers w as
rep o rted by th e Commerce T ru st Com­
p an y of K ansas City, follow ing th e ir
recent an n u al m eeting.
F red M. Staker, form erly assistan t
vice president, w as advanced to vice
president, and M. B ingham w as ad­

IOWA
MUNICIPAL
BONDS
•

W e are actively interested
in the purchase of any
Iowa Municipal issues
•

Current attractive offering
forwarded on request

J

a ck ley

6?

C

o m pa n y

IN V E ST M E N T SECURITIES
EQUITABLE BUILDING

PHONE

3-5181

D ES M O IN E S

Northwestern Banker

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Federal Reserve Bank of St. Louis

February 19W

36

IOWA INVESTMENT BANKERS
P ictu red on the opposite page are a num ber of those a tte n d ­
ing the recent annual m eeting of th e Iow a In v estm en t B ankers
A ssociation, held in D avenport. R eading from le ft to rig h t,
they are: 1. Royal F. M unger (sta n d in g ) financial ed ito r of the
Chicago Daily News, one of the speakers. 2. H a rry B. G raefe, Des
M oines; F ra n k Filip, A ssociation treasu rer, C edar R apids; John
Quail, A ssociation second vice president, D avenport; and R ichard
Sleep, H alsey S tu art, Chicago. 3. R o b ert Root, Des M oines; and
C hester Salter, D avenport. 4. E rlin g L arson, D avenport; V erne
Ehlers, D avenport; T. C. H enderson, Des M oines; and M a tt S te f­

fen, D avenport. 5. B lair Phillips, D avenport; Roy Lerich, A ssoci­
atio n secretary, Des M oines; Eugene McGuire, Des M oines; and
W. T. Fram e, Des Moines. 6. W alter V ieth, A ssociation p re si­
dent, D avenport; F ra n k W arden, Des M oines; and A. M. Mc­
L aughlin. 7. G. C. Fiedler, D avenport; Sherm an Fow ler, Des
M oines; W. L. F lin t, Cedar R apids; and A. L. A ugustine, Cedar
Rapids. 8. C arl Stutz, D avenport; Jam es E. Shaw, Des M oines;
and M arshall Barlow, Des Moines. 9. M. D. D earth, A ssociation
first vice president, Des M oines; George P eterson, Des M oines;
M ike Ruhl, D avenport; and W infield Jack ley , Des Moines.

IO W A
Investment Bankers
Association

W A L T E R E . V IE T H
P r e s id e n t
D a v en p o r t

Organized 1935

ROY W . L E R JC H E
S ecretary
D es M oines

Annual Meeting In Davenport
A L T E R E. V IE T H , V ieth, D un­
can and Wood, D avenport, w as
nam ed p resid en t of th e Iow a In v e st­
m ent B ankers A ssociation at th e a n ­
nual m eeting of th e organization held
last m onth in D avenport. O ther offi­
cers elected are M. D. D earth, M ur­
doch, D earth & W hite, Des Moines,

W

first vice president; Jo h n Quail, Quail
& Company, D avenport, second vice
president; Roy Leriche, W heelock &
Cum m ins, Des Moines, re-elected sec­
retary ; and F ra n k Filip, F ilip & Com­
pany, Cedar Rapids, again fills th e post
of treasu rer.
T hree new m em bers w ere nam ed to

Rhaw, McDermott &Sparks
*

I ■■■—

IN C O R P O R A T E D

■■■..........

, W

■

Investment. Securities
Suitable for Investment of Banks,
Institutions and Trust Funds

307 E quitable Bldg.
DES

Northwestern Banker

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Federal Reserve Bank of St. Louis

MO I N E S .

February 194 0

Phone 3-6119
I OWA

the board of governors; T. C. H en d er­
son, Des Moines; M att Steffen, D aven­
port, and R obert A lexander of D aven­
port. H oldover m em bers on th e board
are Scott M cIntyre, Cedar Rapids; Leo
Mak, W aterloo; F ra n k W arden, Des
Moines; Ju lian W hite, Des Moines;
Jam es Cum m ins, Des Moines; M arshall
Barlow, Des Moines, and H a rry W estphal, Des Moines.
M em bers h eard tw o speakers from
outside th e ir ranks, Royal F. M unger,
financial editor of the Chicago Daily
N ew s, and B yron W. Shim p, of B. J.
V an ln g en & Company, New Y ork City.
Mr. Shim p discussed public revenue
bonds, outlining in detail th e set-up of
th e P ennsylvania T u rn p ik e Bonds, dis­
trib u tio n of w hich his com pany heads
the syndicate.
Mr. M unger looks for a p re tty good
y ear ahead, in 1940, alth o u g h in his
opinion th ere w ill be no boom even
though th e tre n d is upw ard. Investm entw ise, Mr. M unger th in k s th e
sm all stockholder and th e em ploye
m ust be b e tte r sold on com pany m an ­
agem ent, if th e la tte r is to be able to
draw votes in th e direction th e votes
should go. He th in k s th a t unless the
New Y ork stock exchange p erm its
m ore odd-lot trading, th e SEC w ill
move in, and we w ill have m ore gov­
ern m en t regulation th a n we have now.

Northwest Bancorporation
J.
C. Thom son, presid en t of N o rth ­
w est B ancorporation and affiliates,
show s consolidated n et earn in g s for
1939 of $3,385,774 as com pared w ith
$2,602,800 for 1938. Profit on securities
sold am ounted to $463,195 as against
$751,181 for 1938.
Consolidated n et income, including
profit on securities sold, and afte r de­
ducting dividends on p referred stock
and in te re st on capital debentures, m i­
n o rity in terests and provision for
losses and depreciation, w as $2,458,797,
equivalent to $1.57 p er share on 1,559,831 shares of stock o u tstanding as com­
pared w ith $1,972,111, equivalent to
$1.26 p er share on 1,560,878 shares o u t­
standing at th e close of 1938.
Capital and su rplus at th e end of the


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Federal Reserve Bank of St. Louis

38

What Their Statements Show
Figures Reported by New York, Chicago and St. Louis Banks According to Their Statements
of December 30, 1939
TOW N
BANK
C h ic a g o ....................A m erican N a tio n a l B an k & T r u s t ...
C h ic a g o ..................... C ity N a tio n a l B a n k & T r u s t................
C h ic a g o ..................... C o n tin e n ta l I llin o is N a t io n a l...............
C h ic a g o ..................... D rovers N a t i o n a l ........................................
C h ic a g o ..................... F ir s t N a t io n a l................................................
C h ica g o ....................L iv e S tock N a t io n a l...................................
C h ic a g o ....................N o rth ern T r u s t............................................
D e t r o it ..................... N a tio n a l B an k o f D e tr o it .......................
K a n sa s C ity ......... .C om m erce T ru st C o . . . . ...........................
N e w Y o r k ................ C en tral H a n o v er B a n k & T r u s t..........
N e w Y o r k .............. .C hase N a tio n a l.............................................
N e w Y o r k .............. G u aran ty T ru st Co.....................................
N e w Y o r k .............. .M an u factu rers T r u s t ................................
N e w Y o r k ................ P u b lic N a tio n a l B an k & T r u s t..........
S t. L o u is ................. F ir st N a tio n a l B a n k ...................................

GE N E R AL

M O T O R S

$

C apital
1,600,000
4,000,000
50,000,000
1,000,000
30,000,000
1,000.000
3,000,000
17,500,000
6,000,000
21,000,000
100,270,000
90,000,000
42,116,960
7,000,000
10,200.000

ACCEPTANCE

S u rp lu s and
P ro fits
1,554,030
3,359,072
45,086,347
1,037,172
38,952,280
1,664,421
10,522,649
14,226,894
5,496,675
72,745,639
100,270,000
184,701,954
40,151,108
9,910,268
8,995,052

$

L oan s and
D isco u n ts
$ 16,957,052
35,435,432
146,720,994
3,279,919
250,399,294
5,948,209
14,459,261
68,217,885
39,937,555
165,748,814
636,176,000
500,360,310
189,415,409
57,856,207
59,641,794

CORPORATION

U I T I / - I V >

B onds and
S ecu rities
$ 27,465,613

49,718,467
670,411,846
8,490,356
447,000,320
6,213,752
193,091,385
215,389,902
72,803,162
384,708,109
820,170,000
813,827,999
344,168,459
49,030,502
88,779,890

C ash and D ue
From B a n k s
$ 29,114,183
79,911,189
602,293,792
22,223,660
416,592,756
19,470,308
160,224,400
208,496,609
79,950,440
627,536,800
1,293,143,000
1,040,901,764
267,372,518
67,481,494
134,559,919

$

D ep o sits
69,611,148
157,215,692
1,324,094,604
12,652,679
1,053,424,362
29,543,426
369,946,356
462,313,209
184,414,053
1,106,736,120
2,803,730,000
2,074,898,693
762,763,244
157,360,983
265,539,152

y ear totalled $32,896,173 indicating a
book value of $21.09 a share on sh ares
ou tstan d in g exclusive of tre a su ry
stock as com pared w ith $18.80 on
shares o u tstanding at th e close of 1938.
The n et incom e of th e holding com ­
pany, N o rthw est B ancorporation, on
th e basis of dividends received from
affiliates b u t excluding ad ju stm en t re-

is engaged primarily in facilitating
wholesale distribution and retail sales
of the following products of General
Motors Corporation and its world'
wide affiliates: Cadillac , la salle ,
BUICK,

OLDSMOBILE,

PONTIAC,

Chevrolet automobiles; frigidaire
appliances for refrigeration and air
conditioning; DELCO lighting, pow er
and heating equipm ent; gmc trucks;
BEDFORD, VAUXHALL, OPEL, BLITZ
— foreign made automotive vehicles.
T he business consists of investments in
self'liquidating credits, widely diversi'
fied as to region and enterprise, capital
employed being in excessof $80,000,000.

G E N E R A L

MOTORS
INSTALMENT
P L A N
These

notes

In obtaining short term accommodation,
GMAC issues one standard form of note.
This obligation it offers to banks and in '
stitutions, in convenient m aturities and
denom inations at current discount rates.

are available, in limited amounts, upon request.

EXECUTIVE OFFICE NEW YORK ' BRANCHES IN PRINCIPAL CITIES

N orthw estern B anker

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

F ebruary Í9W

J. C. T H O M S O N

su itin g from th e increase in value of
its in v estm en ts in affiliates am ounted
to $730,682. Cash, m arketable securi­
ties and o th er assets, excluding in v est­
m ents in affiliates held by th e holding
com pany, increased du rin g th e year
from $918,617 to $1,920,071.
T he co rp o ratio n ’s rep o rt disclosed
th a t loans and discounts at the end of
1939 w ere $147,010,194 as com pared to
$118,767,609 a t th e end of 1938.
Bonds and o th er securities held by
N o rth w estern B ancorporation and af­
filiated banks a t th e close of the year
w ere $169,264,318 as com pared w ith
$162,691,820 a t th e end of 1938.

39
D uring 1939 affiliated b an k s re tire d
$622,025 p re fe rred stock an d capital
deben tu res, leaving a balance o u t­
stan d in g of $5,462,475 of th e original
am o u n t of $25,705,000 R econstruction
F in an ce C orporation obligations in ­
cu rre d in 1933.
In line w ith th e general tren d , con­
solidated deposits increased d u rin g
th e year, and a t th e end of D ecem ber
w ere $421,483,431 com pared w ith $384,739.131 a t th e end of 1938.

Stern Named President
L aw rence F. S tern w as elected p re s­
id en t of th e A m erican N ational B ank
and T ru s t Com pany of Chicago a t the
b a n k ’s a n n u al m eeting. He first be­
cam e associated w ith a b an k a y ear
ago w hen he w as elected a d irector
an d ch airm an of th e executive com-

strongly officered. Mr. Van H orne is
w ell know n th ro u g h o u t m id-w estern
b an king circles, com ing originally
from N ebraska, b u t he has been in
Chicago long enough to become well
acquainted w ith Chicago banking
problem s, as well as th e problem s of
th e m any correspondent banks in su r­
rounding states w hich are served by
th e A m erican N ational.

m ittee for th e Seventh and E ig h th
F ed eral R eserve districts.
Mr. S challer’s term will cover th e
y ear beginning M arch 1, 1940. W il­
liam M cChesney M artin, presid en t of
the F ederal R eserve B ank of St. Louis,
w ho has been th e reg u lar m em ber of
th e com m ittee d u ring th e p ast year,
w as selected as th e altern ate for the
com ing term .

Continental, Chicago

Committee Member

The board of directors of th e Conti­
nen tal Illinois N ational B ank and
T ru st Com pany of Chicago declared a
dividend of $2 a share, payable F eb ­
ru a ry 1st to sh areholders of record
Ja n u a ry 20th.

George J. Schaller, president of the
F ederal R eserve B ank of Chicago, w as
elected by th e board of directors of
th a t in stitu tio n to serve as th e m em ­
b er of th e Federal Open M arket Com­

F e d e ra l D isco u n t

Corporation
Dubuque, Iowa

A utom obile Finance
T im e P aym ent Plans for
A utom obile P u r c h a s e r s
m m m

Capital, Surplus and Undivided Profits
L A W R E N C E F. S T E R N

m ittee, in w hich capacities he w ill
continue to serve in addition to th e
presidency.
Mr. S tern is w idely know n in Chi­
cago and New Y ork financial circles,
h aving been an in v estm en t b a n k e r for
m any y ears before joining th e A m eri­
can N ational B ank a y ear ago. He
w as b o rn in Chicago in 1888 and a t­
tended D artm o u th College. He be­
cam e associated w ith S. W. S trau s and
C om pany in 1908 and resigned a vice
p residency of th a t concern in 1925 to
estab lish his own firm of L aw rence
S tern & Company. In 1938, th is firm ’s
securities business and in v estm en t su­
p erv iso ry service w ere tra n sfe rre d to
a new com pany, Stern, W am pler &
Co., Inc.
The A m erican N ational, w ith L aw ­
rence S tern is p resid en t and E. N. Van
H orne, executive vice president, is

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

Exceed One Million Dollars
■

■

■

Short Term

Collateral Trust Notes
N o te s S e c u r e d b y C o lla tera l U n d e r T r u s t
A g r e e m e n t W ith A m e r ic a n N a tio n a l
B a n k a n d T r u s t Co., C hicago, III.
m m m

Information on Request

N orthw estern B anker

F ebruary 19^0

40
N orm an B. Shaffer, second vice p resi­
dent, w as elected a vice president. Leland S. Ford, Jo h n F. M annion, O. B.
W allace and E llsw o rth M. W hite, as­
sista n t cashiers, w ere m ade second
vice p residents. A nthony D. Arado,
F red eric A. C urtis, R obert A. Daly,
V ictor S. Dixon, Joseph R. K night and
W illiam P. Schneider w ere m ade as­
sista n t cashiers.
In th e tru s t d ep artm en t R obert S.
D rew and H owell W. K itchell, second
vice p residents, w ere m ade vice presi­
dents. P aul C. B utcher and A llan B.
H ussander, tru s t officers, w ere m ade
second vice presidents. David A nder­

A t th e an n u al sh areh o ld ers’ m eeting,
tw o new directors w ere elected. T hey
are F re d J. F ish er, founder of th e
F ish e r Body C orporation and for
m any y ears connected w ith G eneral
M otors, and C harles D. W im an, p resi­
dent of D eere & Co. W illiam F. H ayes,
a directo r of th e b an k for m any years,
asked th a t he be not ren o m in ated be­
cause of th e dem ands of his oth er
bankin g and business in terests. All
o th er directors w ere re-elected.
A t the d irecto rs’ m eeting follow ing
the sh areh o ld ers’ m eeting, prom otions
w ere m ade in th e official fam ily as fol­
lows: In th e b an k in g d ep artm en t

Municipal
Public U tility

BONDS

son and A lbert E. B urton, a ssistan t
secretaries, w ere m ade tru s t officers.
H a rry C. Birk, Bruce H. De S w arte and
F ra n k R. K ennedy w ere m ade a ssist­
a n t secretaries.

Armour Heads Group
L aurance A rm our resigned recently
as presid en t of the A m erican N ational
B ank and T ru st Com pany and is at
p resen t heading a group com posed of
M arshall Field III, Jo h n N uveen, John
N. N icholson and o th er pro m in en t
business m en, to purchase 60 p er cent
of the common stock in the N ational
B uilders B ank of Chicago.
It is expected th a t the acquirem ent
of the stock w ill be consum m ated in
the near fu tu re and Mr. A rm our w ill
become one of th e principal stockhold­
ers and the chief executive officer. The
en tire board of directors w ill be
changed and the bank will be given a
new name.
The capitalization now consists of

Industrial
A.GALLYNandCOMPANY
Incorporated
1 0 0 W est M on roe S treet, C hicago— T el. F ran k lin 8 4 0 0
N ew Y o rk

M ilw aukee

R ep resen ta tiv es:

W aterloo

O m aha
D es M oines

B oston
Cedar R apids

MORTGAGE IN V E S T M E N T
CORPORATION
LAURANCE

ARM OUR

SHORT TERM COLLATERAL TRUST NOTES
Secured by FH A Insured Mortgages
held under Trust Indenture
by
Central N ational Bank & Trust Company, Des M oines, Iowa, Trustee

Mortgage Investm ent Corporation
8 2 5 F le m in g B ld g .
D e s M o in e s , Io w a

Offices: Dallas, Texas—Des Moines, Iowa—Houston, Texas—Tulsa, Oklahoma

Northwestern Banker

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

February 1940

1,000 shares of $100 p a r value p re­
ferred stock and 8,000 shares of com­
m on of $50 p ar value. D eposits at the
close of business D ecem ber 31, 1939,
w ere $6,787,000 w ith a su rplus of $130,000.
As soon as th e new in terests have
acquired control, w ork w ill com m ence
im m ediately p rep arin g adequate and
a ttractiv e q u arters on th e ground floor
of the Field B uilding and the bank will
be m oved from its p resen t location
about Ju n e 1st.
Mr. A rm o u r’s m any friends th ro u g h ­
out th e m iddle w est are w ishing h im every success in his new bank connec­
tion.

41

Turner Iransferred
H u n tin g to n M. T u rn er, form er a s­
sista n t secretary of th e Chem ical B ank
& T ru st Com pany, New York, w ho
w as appointed an a ssista n t vice p resi­
d en t of th e bank, u n til recen tly w as

he expects to m ake freq u en t trip s to
th e m iddle w estern territo ry .

First National, St. Louis
L ast y ear th e F irs t N ational B ank
in St. Louis installed in its lobby an
A udichron, a m achine w hich au to m at­

ically gives th e tim e over th e tele­
phone w hen its n um ber is called or
dialed. W illiam M. Sherrill, ad v ertis­
ing an d publicity m anager of the bank,
states th a t du rin g th e first y ear of
operation it answ ered 11,444,854 calls.
At p resen t tim e calls average approxi-

Iowa Guarantee, Inc*
...SA FE T Y ...
COLLATERAL TRUST NOTES
Secured by:
1. Individual responsibility o f several thousand borrowers.
2. O bligation o f Dealers.
3. The collateral itself.
4. Insurance o f the collateral.
5. Margin o f 20% or more with Trustee. The Central National
Bank & Trust Co. o f Des M oines.
6. Active supervision by the Trustee.
7. Net worth o f the com pany itself, with twenty-two years suc­
cessfu l operation.
Maturities from three to nine m onths at graduated rates of discount.
H. M. T U R N E R

•

th e C hem ical’s re p re se n ta tiv e located
in Chicago.
A sh o rt tim e ago Mr. T u rn e r w as
tra n s fe rre d to N ew York, from w here

Shops Building

mm

Des M oines, Iowa

WHY EVERY MAN SHOULD HAVE THREE KINDS OF MONEY
OONER
com es
stea d o f

OR
to

ju st

la ter

re a liz e

, a

th a t

m an
in ­

o n e k in d of m o n ey ,

h e n eed s th ree.

For illness or other emergen­
cies, he needs th e kind of money he can lay hands
on in a hurry. He needs cash in a bank.
To protect his family, he needs another kind of
m oney. He needs a reservoir of dollars which will
lie untouched during his lifetime, but which will
spring to his family’s aid if he should die.
The need for these two types of money is well
recognized. One out of every 3 families in the coun­
try has a savings account. One out of every 2 has
insurance.
But m ore and m ore people are beginning to
realize the need for a third kind of money. Money
w hich will be accum ulated step-by-step during a
m an’s productive years—and wdiich will provide

him with a substantial sum when his working days
are done.
This is the kind of money on which many people
have come to depend as an aid to financial security
in old age—as a means of protection against the
time when earning powers decline.
_>*
T h e F irst S te p
The first and most im portant step toward the solution
of your money problems is to find out where your
money goes. Keeping a record of what you spend is es­
sential if you wrant to make the most of your income.
Investors Syndicate offers, wdthout obligation, a
copy of "Living Expenses”— not a budget book—a
simple, easily-kept record showdng wdiere your
money goes. For your free copy, write Investors
Syndicate, D epartm ent 620, Minneapolis, Minn.
This message is typical in character o f a series
of advertisements, sponsored by Investors Syn­
dicate, now appearing in national magazines.

I N V E S T O R S S Y N D IC A T E
Living Protection
E s ta b lis h e d 1894


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

N orthw estern B anker

F ebruary 1940

42
m ately 36,000 p er day. F o r th e 24h o u r p eriod to 7 a. m. New Y ear’s day,
calls totalled 41,361. F o r several
m onth s calls average about 30,000 p er
day, b u t in recen t m onths have been
g radu ally increasing.
N um erous telephone inquiries as to
“how it w o rk s” have been answ ered
by th e b ank since, th e A udichron was

installed, and th o usands of people
have been in to see for them selves.
T hey are usually su rp rised at the ap­
p a re n t sim plicity of th e m achine. It
operates alm ost silently, and th e one
to fo rty calls being answ ered sim ul­
taneously are indicated only by the
flashing of the light w hich causes the
sound films to function.

Northern Trust, Chicago
A t the annual m eeting of th e direct­
ors of th e N o rth ern T ru st Company,
Chicago, the following prom otions
w ere effected: In th e tru s t d e p a rt­
m ent N athaniel M. Sym onds and Jo h n
C. Sm ith w ere elevated from assistan t

Out-of-Town \Saiiks
O u t-o f-to w n banks and bankers w ill find here
c o m p le t e b a n k in g f a c ilit ie s fo r p r o m p t an d
e c o n o m ic a l h a n d lin g o f accou n ts in C hicago. W e
w o u ld ap p reciate the o p p ortu n ity o f serv in g you.
i

C i t y N a t io n a l B a n k
A N »

TRUST

2 0 8

S O U T H

COMPANY

G. L Y L E F I S C H E R

of

L A S A L L E

[Member Federal Deposit Insurance Corporation)

C hicago
S T R E E T

secretaries to second vice presidents,
w hile th e follow ing ban king d ep art­
m en t officers, R obert H. G arrett, Al­
fred B rittain, Jr., and G. Lyle F isch er
w ere prom oted from assistan t cashiers
to second vice presidents.
The directors also elected Jo h n R.
H oyle an a ssistan t cashier and E. LeRoy H all an a ssistan t com ptroller.
All o th er officers w ere re-elected.

R E C r u m m er &C o m pa n y
IST NAT BANK BLDG

CHICAGO. ILLINOIS

Established I8*>7

MUNICIPAL
BONDS
□

O M A H A O F F IC E
508 Insurance B uilding
M. T. C r u m m e r , Mgr.
□

D ES M O IN E S O F F IC E
314 Equitable Bldg.
W a l te r P. D a v is , Mgr.

Northwestern Banker

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

February 19W

43
H arold T. Landeryou, in v estm en t
b an k er at Omaha, w as elevated to Il­
lu strio u s P o ten tate of T angier Tem ple
of th e S hrine at Om aha recently. He
succeeded W illiam H. K arnett. In ­
stallatio n w as held Ja n u a ry 25 in the
Om aha City A uditorium , and w as open
to th e public for th e first time.

NEBRASKA
Investm ent Bankers
Association

O rganized 1920
A B E M A R T IN
P r e s id e n t
L in c o ln

R. AND Mrs. T hom as N. R utter
left by autom obile in J a n u a ry
for Florida. T hey expected to spend
some tim e in M iami before going to
N ew O rleans, an d to re tu rn th e first
of M arch.

M

A dividend to talin g m ore th a n
$36,000 w as declared for the last q u a r­
te r of 1939 on savings invested w ith
th e O ccidential B uilding an d L oan A s­
sociation of Omaha, it w as announced
by P resid en t Ford E. H ovey. D ivi­
dends have been paid a t th e ra te of
3 p er cent a n n u ally since A pril, 1931.
D irectors of th e Com m ercial Savings
and L oan A ssociation of South O m aha
declared th e association’s sem iannual
3 p er cen t dividend, payable J a n u a ry
1. It w as th e one h u n d re d and fifth
consecutive sem iannual dividend paid
by th e in stitu tio n .
More th a n 1,600 N ebraska farm te n ­
a n ts and o th er farm ers have becom e
hom eow ners th ro u g h th e F ederal
L an d B ank of Om aha since passage
of th e farm cred it act of 1935, Charles
M cCum sey, land b an k president, re ­
po rted a t a recen t m eeting of th e farm
cred it board at Omaha.
D uring th e p ast four years, th e
O m aha land b an k advanced m ore th a n
$6,000,000 in m ortgage loans and o th er
credit, M cCum sey said.
P anel discussions and an address by
F ran k R obotka, professor of ag ricu l­

tu ra l econom ics at Iow a S tate College,
Ames, featu red sessions of the an n u al
sto ck h o ld ers’ conference of th e Omaha
B ank for Co-operatives. The two-day
m eet w as held in Om aha recently.
R ep resen tativ es of farm er co-opera­
tives from N ebraska, Iowa, W yom ing
and South D akota attended.
E lm er N. B ovell, 76, tre a s u re r of th e
O ccidental B uilding and L oan Associa­
tion of O m aha and associated w ith
th a t in stitu tio n since 1895, died re ­

R O B E R T P . E L L IC K
S e cr eta ry
O m aha

cently. He had been active u n til th ree
m o nths before his death.
W hen Mr. Bovell began w ith the
firm, he w as th e en tire office s t a f f stenographer, bookkeeper and teller.
In 1908 he w as elected secretary, in
1937 treasu rer. He w as born in Oskaloosa, Iowa. He w as active in the
K iw anis club and in M asonic bodies,
including the Scottish Rite, K nights
T em plar and Shrine.
H is w ife and sister survive.
D ep artu re of Jam es T. W achob,
Om aha inv estm en t banker, on his an ­
n ual w in ter to u r w as delayed a sh o rt
tim e by illness. H is d estination w as
F o rt L auderdale, Florida, and he ex­
pected to rem ain th ere u n til early
spring.
F rien d s of A. AV. Gordon, president
of th e Omaha Loan and B uilding As­
sociation and ch airm an of th e board
of th e A ssociation of Om aha T ax­
payers, received unique New Y ear’s
g reetings from him.
“In accordance w ith our co n stitu ­
tional rig h ts,” he w rote, “I am free to
express th is u n tax ed w ish to you and
yours. I hope you w ill have a full
m easure of p ro sp erity in order th a t
you m ay pay y o u r proportion of th e
privileges en u m erated below .”
Below w ere enum erated, m onth by
m onth, th e various taxes w hich Mr.
Average- Citizen has to pay. The
g reetin g w as about tw o feet square.

Over-Counter Facilities
in All Markets
Primary Markets in Iovra
Securities

McGUIRE, WELCH & CO
2 3 1 So. LaSalle
CHICAGO
Bankers Trast Bldg.
DES MOINES

F irs t steps tow ard refinancing the
four m illion-dollar public housing debt
of th e O m aha housing a u th o rity a t a
low er in te re st rate, by sale of bonds
to p riv ate investors, w ere tak en re ­
cently.
T he local a u th o rity w as considering
a m erger of federal construction loans
for th e South Omaha and Logan Fontenelle extension projects. Total cost
of th e 522-unit South Side T errace
H om es is expected to be $2,600,000
w hen com pleted in M arch. The esti­
m ated developm ent cost for th e 272u n it Logan F ontenelle extension, to
go into construction early this spring,
is $1,400,000.
On both projects, the U nited States
housing au th o rity has contracted to
fu rn ish 90 per cent of th e cost by 60y ear self-liquidating m ortage loans at
th ree and one-half p er cent interest.

L a m s o n
B r o s .

8c C o .

E

s t a b l is h e d

141 W. Jackson Blvd., Chicago
50 Broadway, New York
Our b ra n ch o ffic e s are
equipped to render com ­
p le te b ro k era g e serv ice
in the handling of grain
(cash and futures),
stocks, bonds, cotton and
provisions. Private wires
direct to all m arkets.
B R A N C H O F F IC E S

N e w Y ork, N . Y.
B uffalo, N . Y.
C edar R a p id s, Iow a
D a v en p o rt, Io w a
D e s M oin es, Io w a
D ubuque, Io w a
F o rt D odge, Iow a
Iow a F alls, Iow a
M arsh alltow n , Iow a
M ason C ity , Io w a
Siou x C ity , Iow a
S to rm L a k e, Iow a
W aterlo o , Iow a
F ran kfort, Ind.
L a F a y e tte , Ind.

M in n eapolis, M inn.
S t. P au l, M inn.
K an sas C ity , M o.
S t. L o u is, M o.
O m aha, N eb.
L in coln , N eb.
B loom in gton , 111.
D e K a lb , 111.
G ilm an, 111.
G alesbu rg, 111.
L a S a lle, 111.
P eoria, 111.
Q uin cy, III.
M uskogee, O kla.

M E M B E R S O F L E A D IN G S E C U R IT Y
a n d C O M M O D IT Y E X C H A N G E S

Northwestern Banker

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

1874

February 194-0

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

45
large n um ber of out-of-town business
associates and friend s of th e deceased
b an k er joined w ith m any local people
in paying respects to th e Alliance
financier w ho died in Omaha.

NEBRASKA

Stamford

NEWS
C. C. N E U M A N N
P r esid en t
O akland

WM. B . H U G H E S
S ecreta ry
Om aha

Rushville
J. J. L inehan, H. A. Dale, A. N.
G ehrt, Mrs. E u gene W illiam s an d Joe
D ieriex w ere elected directors for th e
ensu in g y e a r a t th e a n n u al m eeting
of th e stockholders of th e Stockm en’s
N ational B ank, R ushville.
Mr. L in eh an w as elected p resid en t
of th e bank, H. A. Dale, executive vice

p resident; J. G. B rew ster, vice p resi­
dent; Edw . B. O ttem an, cashier; Jeren e
W ard, assista n t cashier; B en n ett Jo h n ­
son and W ayne M essenger, tellers.

Dies In Omaha
F u n e ra l services for Dr. F ra n k M.
K night, presid en t of th e A llian ce N a­
tional Bank, w ere held recently. A

R esignation of A. E. B row n as
cashier of th e City B ank and T ru st
Company, Stam ford, advancem ent of
Ben L. M ohney to succeed him , and
addition of B u rto n H ughes of Salem,
M issouri, to fill Mr. M ohney’s form er
post w as announced by th e bank. The
changes are effective at once.

Plainview
O.
M. Jeffrey, w ho up to th e first
of th is y ear h ad been associated w ith
th e Com m ercial B ank of B assett, p u r­
chased a controlling in te re st in th e
P lainview S tate B ank a t Plainview .
Mr. Jeffrey w ill have his son, Adon,

What Nebraska Statements Show
DECEMBER 30, 1939
T he N orthw estern B anker is pleased to publish B ank Statem ents received before going
to press— p u t us on your mailing list and send us your statem ents im m ediately after
each call. I f your bank is not included in th e list below it is because YO U did not send
in your statement. Please do so next time.
BANK
TOW N
A llia n c e ............
A llia n c e ............
B e a tr ic e ............
C la r k s o n .........
C o lu m b u s..........
C r e ig h to n . . . .
F a ir b u r y ..........
F a ir m o n t .. . . .
F r e m o n t............
G ord on ..............
Grand I sla n d .
Grand Isla n d .
Grand I s la n d .
H a r tin g to n . . .
H a s tin g s .........
H a s tin g s ..........
H eb ron ..............
H u tc h in s o n . . .
K e a r n e y ............
K e y sto n e .........
K e n e s a w ..........
L e x in g to n . . . . . . . .F arm ers S t a t e ................
L in c o ln ..............
L in c o l n .. . . . . .
L e ig h . . . . . . . .
L o o m is . . . . . . . . . . F ir s t N a tio n a l .................
L oup C i t y .. . . . . . .F ir s t N a tio n a l .................
M c C o o k .. . . . . .
M o r r ill. . . . . . .
N eb ra sk a C ity . . , .T h e F a r m ers B a n k .........
N eb ra sk a C ity . . .O toe C ou n ty N a tio n a l. .
N a tio n a l B a n k o f ......... .
N o r fo lk . . . . . . . . .
N o rth P l a t t e . . . . . F ir s t N a tio n a l . . . . . . . .
N o rth P la t t e . . . M cD onald S ta te . . . . . . . .
O rd ..............
O m a h a . . . . . . . . . . .F ir s t N a tio n a l .............. ...
O m ah a. ............
O m ah a. . . . . . . . . . O m aha N a tio n a l ....... .. . ,
P a c k e rs N a tio n a l ............
O m ah a. . . . . . .
S outh O m ah a. . . . .Stock Y ard s N a t io n a l.. ,
...U n i t e d S ta te s N a tio n a l
O m aha........ ..
P ie r c e ................. . . . C on es S ta te .............. .......
P la tts m o u th . .
S co ttsb lu ff. . . . . . S co ttsb lu ff N a tio n a l . . . .
S p a ld in g ......... .. . . . S u a ld in g C ity . . . . . . . . .
T ek a m a h . . . . .
W ah oo. . . . . . .
W a k efie ld ..........
W 'isn er..............
W y m o r e ............ . . . W ym ore N a t i o n a l ............
Y ork , . . . . . . . . . . .F irst N a tio n a l B a n k . . . .
* In c lu d es S u rp lu s and P ro fits


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

C A S H IE R
C a p ita l
. F. W . H a r r is ............ .$ 150,000*
. C. H. S u d m a n ......... .
125,000
.E d C. A u s t i n ..........
100,000
.). A . K u c e r a ............
40,000
. H ow ard B u rd ick . . .
100,000
25,000
. D. A . V a n D erv ee r.
150,000
.I v a n C. R ile y ............
25,000
. C has. F . T o u s. . . . .
. J . G. E d lo ff..............
100,000
. B. I). B erk h eim er
50.000
100.000
. E d w ard H u w ald t
. J. F . C le a r y ..............
200,000
. H arald N o m la n d . .
100,000
. E d g a r H oar ............
25,000
100,000
.F lo y d A . H a n s e n ..
. C has. E . D e e t s ......... .
130,000
. H . R. K illin g e r ___
50,000
. H . R. J e n s e n ............
100,000
.P a u l H. K a n n o w . .
50,000
, T . B. C o le ...................
15,000
S. H . I t z e n ................
25,000
P e te r J e n s e n ............
35,000
602,500
. C. W . B a tte y ......... .
935.000
. H ow ard F reem a n . .
, Geo. C. K u m p f. . . .
25,000
W . H. S w a r tz . . . . . .
25.000
. C. H. R y a n ................
25.000
H. M. K r o g h ...........
75,000
R obt. T . C o v in g to n .
25,000
. J. R. S te v e n s o n . . . .
170,583*
. J. D. S to c k e r ............
50,000
. R obert W eidenbach
100,000
, W . H. M u n g e r .........
100,000
100,000
J. Y . C a s tle ..............
R . E . M isk o ..............
60,000
. 1,500,000
, P a u l H an sen ............
500,000
C lyde O. D a r n e r ... . 2,000,000
L . D a le M a tth ew s . .
200,000
Joh n McCUmber . . . .
450,000
H. E . R o g e r s ............ . 1,100,000
E . G. S ch ellp e p e r. .
50,000
50,000
F ran k A . C lo id t. . . .
100,000
J. L. W it t e r s ............ .
M. J. D o lc e .................
30,000
H, J. W ra g g e , . . . . .
62,500
E r n e st H a n so n . . . .
80,000
R obert E . A nd erson
25.000
N e il D, S a v ille .........
50,000
L. Boyd R is t ............
50,000
f In c lu d es C ash a n d D u e F rom B a n k s

S u rp lu s and
P r o fits
10,982
$
48,043
117,821
7,535
60,667
26,217
108,746
13,162
79,039
95,000
120,816
417,899
40,895
23,289
64,530
141,622
22,931
26,021
68,093
13,713
10,064
10,028
257,949
505,105
9,255
25,000
27,469
63,510
34,476
39,665
28,339
115,588
40,680
34,836
1,000,000
553,480
1,821,136
87,707
51,958
834,321
13,463
100,053
129,665
20,519
78,426
82,457
18,672
56,147
16,172
205,344

L o a n s an d
D isco u n ts
$
139,331
1,001,712
1,011.113
105,679
964,179
265,652
1,219,750
42,759
762,710
405,899
514,610
1,344,997
409,569
338,480
703,938
1,087,786
240,066
1,060,394
350,614
153,735
119,485
206,579
3,388,526
3,153,022
159,201
119,020
221,517
450,039
429,814
295,100
240,105
509,984
807,782
409,082
255,233
10,079,487
6,773,655
15,652,338
1,479,716
506,120
5,330,500
166,024
601,315
1,073,908
137,828
590,499
470,803
233,269
361,211
146,976
626,069

B o n d s and
C ash an d D ue
S ec u r itie s
From B a n k s
I
278,815
$ 1,602,483
203,732
737,00*9
982,266
1,066,894
152,856
72,787
700,810
845,058
32 9 ,0 8 9 f
553,037
714,586
61,262
156,648
289,146
850,364
239,612
430,784
949,280
624,754
898,042
2,838,848
359,687
273,380
56,359
148,350
382,519
537,987
874,577
7*96,571
94,857
121,704
180,867
289,046
975,850
181,979
35,868
137,693
46,330
29,083
51,908
162,707
4,644.037
4,099,680
6,981,559
13,593,605
22,580
70,474
101,700
118,107
314,762f
477.075
828,210
154,665
14,654
488,617
712,671
91,665
359,821
422,727
294,837
924,094
557,994
615,543
226,173
118,284
224,836
7,613,631
13,042,*929
3,911,346
5,225,458
20,418,015
16,995,571
504,868
963,414
183,383
316,272
13,445,791
9,874,982
214,166
52,600
281,008
243,202
1,135,059
128,408
51,193
18,577
129,073
347,346
349,381
307,336
136,972
80,404
97,500
119,104
167,944
161,107
679,099
876,383

D ep o sits
$ 1,894,750
1,767,197
2,868,452
286,318
2,354,389
551,735
2,390,197
228,012
1,727,333
935,950
1,905,491
4,554,027
909,577
501,974
1,466,543
2,544,580
396,714
1,473,143
1,406,062
293,639
161,239
387,654
11,312,270
22,753,082
222,732
281,585
478,922
1,612,248
504,221
1.326,805
619,810
1,109,054
2,073,241
1,113,670
562,828
29,703,281
14,771,875
49,930,692
2,693,142
932,902
27,239,701
389,127
980,661
2,135,711
170,948
944,431
993,907
415,815
446,901
414,524
1,880,954

46
•
associated w ith him in th e m anage­
m en t of th e bank.
Officers of th e b ank w ill be: O. M.
Jeffrey, president; W. L. Joh n so n and
Dr. M. L. Cline, vice presidents; Adon
Jeffrey, cashier; M eldy P eterso n and
L. A. L arson, a ssista n t cashiers, all of
Plainview .

N E B R A S K A

N E WS

W ith First Trust

th a t upon M arch 1, 1940, Mr. M ilton
F. B arlow w ill become a m em ber of
th e organization.
Mr. B arlow w as born in Omaha, the
son of th e late M ilton T. Barlow, one
of th e pioneer ban k ers of th e state,
w ho becam e associated w ith the
U nited States N ational B ank in 1863,
and w as its directing head and p resi­
den t for m any years.

T he F irs t T ru s t Com pany of L in ­
coln, tak es p leasure in announcing

In 1926 M ilton B arlow w as grau ated
from Yale U niversity. A fter gradua-

COMMERCIAL

•

SAVI NGS

CHECKING

tion he re tu rn to Omaha and w as em ­
ployed by the U nited States N ational
B ank as m essenger, advancing du rin g
his ten-year tra in in g course to the
post of assistan t cashier, w hich post
he held u n til N ovem ber 1, 1936. D ur­
ing th is tim e study at th e N ight Law
School at Omaha M unicipal U niversity
enabled him to be adm itted to th e
practice of law in 1931.
Mr. B arlow left Omaha in N ovem ­
ber, of 1936 to become cashier of an
affiliated in stitu tio n , T he N ational
Citizens B ank of M ankato, M innesota,
w here he has been located th e p ast
th ree years.

TRUSTS

. . . your Chicago transactions
Complete correspondent facilities — for transit,
collections, handling of securities, credit and invest­
ment information — are offered by the American
National Bank and Trust Company of Chicago.
M IL T O N F. B A R L O W

In addition, you find in each member of our
staff a personal interest in this relationship that is
unusual in a major financial and business center.
We will be pleased to discuss your correspondent
requirements with you when you are in Chicago.

A M E R I C A N N A T I O N A L BANK
A ND TRUST C O M P A N Y
LA

SALLE

STREET

AT

W A S H I N G T O N

M em ber Federal Deposit Insurance Corporation

N orthw estern B anker


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

February 19W

D uring his early banking tra in in g in
Omaha, Mr. B arlow becam e in terested
in and com pleted courses of th e A m ­
erican In stitu te of B anking. In 1933
he w as elected a m em ber of the E x e­
cutive Council, and this p ast y ear he
w as honored by being chosen as th e
presid en t of th e A m erican In stitu te of
B anking.

Check Plan
The F arm ers N ational B ank of
G rant announces th a t it has installed
a new “PAYC” (pay as you check)
plan, and is now ready to accept de­
posits u n d er th is new system .
The “PAYC” plan is a checking ac­
count system especially designed for
those w ho cannot m eet p resen t m ini­
m um balance req u irem en ts or w ho
p refer not to pay prevailing service
charges. The new checking plan of­
fers th e sam e conveniences and ad­
vantages th a t the reg u lar checking
account does.

47

N E W p resid en t of th e Om aha C lear­

ing H ouse A ssociation is H. M.
B u sh n ell, p resid en t of th e U nited
States N ational B ank of Omaha. He
succeeds T. L. D avis, p resid en t of the
F irs t N ational B ank of Omaha.
W. A. S aw tell, p resid en t of th e Stock
Y ards N ational B ank of South Omaha,
w as elected vice-president and c h a ir­
m an of th e clearing house com m ittee.
W illiam B. H u gh es w as re-elected sec­
re ta ry -trea su re r.
O thers elected m em bers of th e clear­
ing house com m ittee are Mr. Davis,
Mr. B ushnell, W. D ale Clark, p resid en t
of th e O m aha N ational B ank; A lvin
E. Johnson, p re sid e n t of th e Live
Stock N ational B ank of South Omaha;
J. F. Coad, ch airm an of th e board of
th e B ackers N ational B ank of South
Omaha.
F ew changes w ere m ade by Om aha
ban k s at th e a n n u al m eetings in J a n ­
uary.
A t th e U nited S tates N ational B ank
of Om aha, H arry E. R ogers, form er
cashier, becam e a ssista n t vice-presi­
den t in charge of th e in sta llm e n t loan
d ep artm en t. H e has been w ith the
b an k 28 years. The U nited States
N ational also advanced A u stin E. V ic­
k ery, fo rm er a ssista n t cashier, to cash­
ier. H e has been w ith th e b a n k 31
years. H arold T. U eh lin g w as nam ed
assista n t tr u s t officer of th e U nited
S tates N ational. He h as been w ith
th e b an k seven y ears as m an ag er of
th e in v estm en t division of th e tru s t
dep artm en t.
No o th er m ajo r changes in officers
or d irecto rs w ere announced by any
o th e r banks.
C olonel N elson A. M orris of Chicago,
g ran d so n of th e fou n d er of th e form er
M orris P ack in g Com pany, h ad p lanned
to a tte n d th e a n n u al m eeting of th e
L ive Stock N ational B ank, of w hich he
is a stockholder, b u t illness p rev en ted
th e trip to Omaha.

A t th e m eeting of th e L ive Stock
N ational, a strik in g rep o rt w as p re­
sented. It show ed th a t du rin g the
p ast year, capital stock and su rplus
w ere increased to one m illion dollars
th ro u g h p aym ent of a stock dividend
to stockholders and an addition to su r­
plus.
Besides, th e ban k has paid
re g u lar dividends th ro u g h o u t the de­
pression period at th e ra te of 6 p er
cent annually. Since D ecem ber 31,
1933, th e b a n k ’s deposits have in ­
creased from $4,910,000 to $14,771,000,
and loans from $1,566,000 to $6,773,000.

B ank loans in Omaha reached an
eight-year high, it w as disclosed by
figures in response to a bank call as
of D ecem ber 31.
Loans totaled $42,738,438, highest
since Septem ber 29, 1931, w hen the
figure w as $44,777,101, and an increase
of m ore th a n $6,000,000 since last
October and of nearly $7,000,000 since
D ecem ber 31, 1938.
D eposits of all Omaha banks soared
to $134,992,039, hig h er by $1,528,663
th a n th e previous record figure of
$133,464,376 rep o rted last October. A
check of records show ed no hig h er
figure since 1900. T he deposits w ere
$14,790,528 hig h er th a n a year ago.
F ig u res by individual banks for
D ecem ber 31, 1939:
D eposits
Loans
Om aha N ational $49,930,692 $15,653,824
F irs t N ational
29,703,281 10,079,488
U. S. N ational
27,239,701
5,330,500
Live Stock N at’l 14,771,875
6,773,635
Stock Y ards N at’l 8,026,391
2,150,870
Packers N at’l
2,693,139
1,467.796
Douglas Cty. Bk. 1,131,615
506,120
N orth Side Bk.
562,443
340,109
Re-elected directors of th e Omaha
& Council Bluffs S treet R ailw ay Com­
p any a t th e ann u al m eeting w ere
W . B. M illard, Jr., vice p resident of
the Omaha N ational Bank, and Jam es

Live Stock National Bank
Omaha
S ta te m e n t o f C o n d itio n D e c e m b e r 3 0 , 1 9 3 9
RESOURCES

LIA B ILIT IES

Loans and Discounts........................... 6,773.655.66
Bonds and Other Securities...............
15,029.73
Stock in Federal Reserve B ank..........
30.000.00
Banking House and F ixtures.............
1.00
Other Real E s ta te .................................
None
U. S. Gov’t Securities 3,911,346.16
Cash, Sight Exch. and
Due From Fed.
Res. Bank ............ 5 ,225,458.98 9,136,805.14

500.000.00
Capital Stock (C om m on).
Surplus ..................................................
500,000.00
Undivided P r o f its ....
53,480.98
Unearned Discount ............................
6,103.82
Reserve for Taxes, Interest, E tc. . . . 116,531.67
Dividend Payable January 2,1 9 4 0 .
7,500.00
Deposits:
Banks .................. 7,755,753.03
Other Deposits . 7 ,016,122.03 14,771,875.06
15,955,491.53

15,955,491.53
LO A N S AND

C A P IT A L AND S U R P L U S

December
December
December
December

30,
30,
30,
30,

5 5 0 .0 0 0 . 00 December
6 5 0 .0 0 0 . 00 December
760 000.00
December
1,000,000.00 December

1933
1935
1937
1939

D ISC O U N T S

30,1933 - - - - 30,1935 - - - - 30,1937 ..........................
30,1939 - - - - -

D EPO SIT S

December
December
December
December

30,
30,
30,
30,

1933
1935
1937
1939

. 4,91 0.1 06.01
10,140,900.52
12,874,403.86
14,771 875.06

W e o ffer to our b a n k in g fr ie n d s our f a c i lit i e s in c o o p e r a tin g w ith th em in th e fin a n cia l
p ro b lem s o f th e ir L iv e S to ck , A g r ic u ltu r a l and C o m m ercia l c u sto m ers.
A L V I N E . J O H N S O N , P r e s id e n t.
T h is B a n k h a s no a ffiliated c o m p a n ie s
( M e m b e r F e d e ra l D e p o s it Insu ra nc e C o rp o ra tio n )

Northwestern Banker

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

1,566,262.23
2,035,087.78
5,640,905.35
6,773,655.66

February t9b0

48
•
P. Lee, form er O m aha b anker. F red
P. H am ilton, Jr., w as prom oted to
th ird vice p resid en t of th e com pany.
He is also a director. H is fath er, F red
P. H am ilton, Sr., is president. Mr. Lee
is second vice president.
Gross rev en u e of the com pany in
1939 w as $2,331,563, a decrease of $25,526 com pared w ith 1938. The com ­
pany rep o rted a net loss of $165,613.60
in 1939, a fte r pay m en t of taxes, in te r­
est on o u tstan d in g bonds and oth er
obligations.

N E B R A S K A

N EW S

Mr. and Mrs. J. F. M cD erm ott w ere
hosts to Cornelius V anderbilt, Jr.,
w hen he w as in Omaha recently for a
lecture. Mr. M cD erm ott is vice p resi­
den t of th e F irs t N ational B ank of
Omaha. Mr. V anderbilt recalled th a t
on a visit to Omaha in 1938, he w on
first prize for his “bu m ” costum e at
a p a rty d uring the Ak-Sar-Ben horse
show.
R oyal D. M iller of the new business
d ep artm en t of th e Omaha N ational

C ontinental I llinois
N ational Bank
and T rust C ompany
OF CH ICAGO

Statement of Condition, December 30,1939
RESO U R C ES
Cash and Due from Banks..................................$ 602,293,792.28
United States Government Obligations,
Direct and Fully Guaranteed..........................
607,936,253.46
Other Bonds and Securities................................
62,475,593.52
Loans and Discounts............................................
146,720,994.71
Stock in Federal Reserve Bank.......................
2,400,000.00
Customers’ Liability on A cceptances.............
781,076.51
Income Accrued but N ot C ollected.................
2,639,106.47
Banking H o u se .....................................................
12,600,000.00
Real Estate Owned other than Banking House
3,307,302.23
$1,441,154,119.18

L IA B IL IT IE S
D ep osits................................................... $1,324,094,604.28
A cceptances...........................................
786,810.26
Reserve for Taxes, Interest and E x p e n se s... .
4,915,569.69
Reserve for C ontingencies..................
16,048,151.35
Income Collected but N ot Earned....
222,636.07
Common S tock .......................................
50,000,000.00
Surplus......................................................
30,000,000.00
Undivided Profits...................................
15,086,347.53
$1,441,154,119.18

U n i t e d S ta te s G o v e r n m e n t o b lig a tio n s a n d o t h e r s e c u r i ti e s c a r r ie d
a t $158,542,814.02 a r e p le d g e d t o s e c u r e p u b lic a n d t r u s t d e p o s its
a n d fo r o t h e r p u r p o s e s a s r e q u i r e d o r p e r m i tt e d b y law

Member Federal Deposit Insurance Corporatitn

Northwestern Banker


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

February 1940

•
Bank, ill for several w eeks, re tu rn e d
to his desk recently.
E m ployes of the Live Stock N ational
B ank of South Omaha took advantage
of th e snow recently and w en t on a
bobsled p a rty w hich sta rte d at the
F o rt Crook hom e of th e p a re n ts of
R obert Iske, a bank employe, and
ended at th e F o rt Crook P resb y terian
Church.
Mrs. W. D ale Clark, wife of th e p res­
ident of th e Om aha N ational Bank,
w ent to Chicago to atte n d th e concert
by K irsten Flagstad. Mrs. C lark is a
leader in Omaha m usic circles.

W hen a d au g h ter w as born recen tly
to Mr. and Mrs. John F. D avis in
Omaha, th e baby, first child of th e
Davises, becam e the y ou ngest m em ber
of a four-generation group. The b ab y ’s
fa th e r is th e son of T. L. D avis, p resi­
dent of th e F irs t N ational Bank. The
child’s g reat-grandm other is Mrs. F.
H. Davis, w idow of th e form er p resi­
dent and board chairm an of th e bank,
w ho w en t to Omaha in 1854.
D uring 1939, only th re e of O m aha’s
27 m ajor business indicators show ed
a decline from 1938 totals.
B ank clearings gained 6.7 per cent,
call deposits w ere up 14.6 p er cent,
bank loans 14.1 per cent. O utstanding
im provem ent w as the gain in build­
ing, 176.6 p er cent.
O m aha’s favorable position in th e
A m erican b u s i n e s s pictu re w as
bro u g h t out in the recen t F ed eral De­
p artm e n t of Commerce surv ey w hich
placed th e city “above averag e” in
y early sales volum e p er resident, in
consum er purch asin g pow er and in
o th er indicators.
D uring 1939, bank deposits reached
the h ighest m ark since th e tu rn of the
century.
T. Li. D avis, p resid en t of the F irs t
N ational B ank of Omaha, w as selected
a d irector of th e Omaha branch, F ed ­
eral R eserve B ank of K ansas City, at
a recen t m eeting in K ansas City. He
succeeds W . D ale Clark, p resident of
th e Om aha N ational Bank, w ho com­
pleted tw o three-year term s (the m axi­
m um ) Ja n u a ry 1.
H. L. D em pster of Beatrice, N ebras­
ka, w as nam ed a director for a second
three-year term . J. J. T hom as of
Sew ard, N ebraska, w as appointed
deputy ch airm an of th e p a re n t bank.
W alter W. H ead, form er O m aha
b an k er and presid en t of th e N ational
Council of Boy Scouts, w as p rincipal

49
sp eak er a t th e a n n u a l d in n e r of th e
S outhw est Iow a Boy Scout Council in
Council Bluffs recently. He is now
head of th e G eneral A m erican Life
In su ran ce Company, St. Louis.
H e also addresed a com bined m eet­
ing of K iw anis, R otary, and Lions
Clubs in Council Bluffs.
John A. C hangstrom , vice p resid en t
of th e O m aha N ational B ank, has p u r­
chased th e R ichard F. K nox farm four
m iles n o rth of Sidney, Iowa, from the
F ed eral F a rm M ortgage Corporation.
H e ow ns o th er land in th e Sidney area.

N ebraska b an k s m ade m ore th a n
225,000 new loans, to talin g $83,000,000,
an d renew ed 240,000 loans to talin g
$102,000,000, in six m onths, according
to a re c e n t re p o rt by th e A m erican
B an k ers A ssociation.
Mr. and Mrs. D aniel J. M onen w ere
am ong th e hosts a t Om aha holiday
p arties. T hey received a t an open
house on D ecem ber 31. Mr. M onen is
vice p resid en t in charge of th e tru s t
d e p a rtm e n t of th e Om aha N ational
B ank. P e rry H endricks, Jr., son of Mr.
and Mrs. P erry H end ricks, w as host a t
a buffet su p p er at his home. He is a
h igh school senior. H is fa th e r is vice
p resid en t of th e U nited States N a­
tional Bank. Mr. and Mrs. H endricks
an d th e ir son w en t to Chicago to spend
C hristm as w ith Mr. and Mrs. B enja­
m in V ance H alstead, son-in-law and
d a u g h te r of Mr. and Mrs. H endricks.
Mr. an d Mrs. T. E. D avis recen tly
w ere in M inneapolis to v isit th e ir
d au g h ter, Mrs. Jo h n R. L auritzen , and
Mr. L auritzen . T he L au ritzen s w ere
O m aha v isito rs for N ew Y ear’s.

of L incoln’s four
national banks held th e ir annual
m eetings last m onth.
T he F irs t N ational B ank stockhold­
ers approved a proposal for a stock
dividend w hich placed th e b an k in
th e “m illion d o llar” class of capitaliza­
tion, m aking it one of th e four n a­
tio n al banks in the state of th a t classi­
fication.
A t th e sam e tim e th e C ontinental
N ational B ank declared a $37,500 stock
dividend w hich increased th e capital
stru c tu re th ere to $768,000.
The N ational B ank of Commerce
stockholders m et and th e n adjourned
u n til F e b ra u ry 8 to com ply w ith cer­
ta in form alities.
A t th e F irst N ational, E. U. Guenzel,
w ho en tered the b a n k ’s em ploy last
y e a r w as prom oted to a ssistan t vice
president.
At th e C ontinental N a­
tional, H arold E ein berger w as nam ed
a ssista n t cashier.

S

tockholders

M. W eil, N ational B ank of Com­
m erce, w as appointed chairm an of the
budget com m ittee of th e L ancaster
county ch ap ter of th e N ational F o u n ­
dation for In fan tile P aralysis, E lm er
Magee, president, announced. He re ­
places A rchie F u rr.
M iss E dith W oodward, for some
y ears a ssistan t cashier of N ebraska
State Bank in Lincoln, w as m ade
secretary of th e U pper A venue N a­
tional B ank in Chicago at its annual
m eeting, th e position being a new ly
created one.
H arry S. F reem an, 79, died recently
less th a n a day afte r being tak en to
th e hospital. He w as ch airm an of the
executive board of F irs t N ational
Bank, w ith w hich in stitu tio n he had
been connected for 48 of th e 58 y ears
he lived in Lincoln.
B orn in C larksburg, W est V irginia,

A m ong th e le tte rs p o u rin g in on
A lvin E. Johnson, p resid en t of the

Live Stock N ational B ank, co n g ratu ­
latin g him as general ch airm an of the
successful O m aha C om m unity Chest
drive, w as one from an A m arillo,
Texas, m an, w ho said he believed
Jo h n so n “w ould m ake a b e tte r p resi­
d en t th a n th e co u n try has h ad re ­
cen tly .”
B ut Mr. Jo h n so n th in k s h e ’ll stick
to banking.

Depositories
T he F irs t N ational B ank of W aithill and th e B ank of H a rtin g to n w ere
nam ed depositories by th e T h u rsto n
co u n ty B oard of Com m issioners last
w eek. Both b anks w ere county de­
p o sitories in 1939.
YO UR STATE BANKERS A SSO CIA TIO N
O FFIC IA L SAFE, V A U L T A N D
TIM ELOCK EXPERTS

F. E. DAVENPORT & CO.

Efficient
Correspondent Service
with
a

"Persona! Touch"
(ONTINENTAL NATIONAL

© ; Bahk
LINCOLN
/

Member Federal Deposit Insurance Corporation

OM AHA

N orthw estern B anker

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Federal Reserve Bank of St. Louis

F ebruary 19k0

50
•
Mr. F reem an atten d ed U niversity of
W est V irginia for th re e years, and
in 1881 came to N ebraska, living at
Y ork for a year. In 1882 he en tered
th e g rain business at Lincoln and for
the n ex t four y ears w as associated
w ith S. W. L ittle & Co., and T. W.
Low ry.
Mr. F re e m a n ’s b an k in g career be­
gan in 1885, w hen he en tered th e State
N ational B ank, th e n located a t 10th
and O streets. Seven y ears la te r he
becam e connected w ith F irs t N ational
Bank, w hich for y ears he served as
president. T hus for 55 y ears he w as

N E B R A S K A

N E WS

in business at th e sam e location. He
has also been presid en t of Lincoln
C learing H ouse A ssociation, and vice
p resid en t of F irs t T ru st Company.

McCloud Dies
W illiam E. McCloud, 68, assistan t
cashier of F irs t N ational B ank, and a
b ro th e r of the late Charles A. McCloud,
fo rm er republican state leader, died
in Y ork after suffering a stroke.
A native of Iowa, McCloud came
to Y ork county w ith his p aren ts in
1878. He g rad u ated from S trom sburg
B usiness College and engaged in busi-

•ness at H oldrege. H is b an king career
began at B radshaw and Lushton.

In Fremont
C.
C. N eum ann and Chase N eum ann
of the F arm ers & M erchants N ational
Bank, Oakland, w ere guests of th e
S tephens N ational B ank a t F rem o n t
recently at th e th ird in a series of
C ham ber of Commerce “P arade of Op­
p o rtu n ity ” m eetings at th e P athfinder
hotel. B ankers from seven eastern
N ebraska cities w ere guests.
C. C. N eum ann is p resid en t of th e
N ebraska B an k ers’ A ssociation. A n­
o th er guest w as W illiam B. H ughes of
Omaha, secretary of th e state associa­
tion.

Remodeling

‘The Bank at the Yards”
D IR E C T O R S
O F FIC E R S
C. L. Fredricksen, President
M. A. W ilson, V ice President and Cashier
W . G. N elson, A ssista n t Cashier
W . C. Schenk, A ssista n t Cashier
L. W . R oss, A ssista n t Cashier

/ /

C. R. M cK enna, President, Johnson B iscu it Co.
B. L. Sifford, A ttorney, Sifford & W adden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson, V ice President and Cashier
H. C. B osw ell, Secretary-Treasurer,
W estern Contracting Corporation

From Corn to Beefsteak
From corn to b eefsteak . . . from feedlot to
packing plant, officers and em p lo y es of the Live
Stock N ational Bank know ev ery p h a se of the
live stock b u sin ess.
In addition, ev ery d a y w e are e n g a g e d in
financing the raising and m arketing of live
stock. A ssure the sp e e d y handling of your
Sioux City item s b y u sin g this bank in the heart
of the Stock Yards of Sioux City.

/ /

W ork has started on th e com plete
rem odeling and redecorating of th e
in terio r of th e B u rt C ounty State Bank,
Tekam ah.
The plans call for new w alls, new
ceiling, m odern electrical fixtures and
m odernizing and stream lin in g of in ­
terio r fixtures. The w alls w ill be of
Nu-Wood insulation in ivory and tan
two-tone effect. The ceiling w ill be of
a sim liar m aterial in m odern w hite
tone. V enetian blinds w ill adorn th e
windows.
The fixtures w ill be converted into
th e m odern low-type style and th e
grill w ill be done aw ay w ith. The
plans also call for various re a rra n g e ­
m ents in th e directo rs’ room and a
n um ber of o th er im provem ents for
facilitating of business and for the
convenience of patrons.

Gordon
Dale Sorensen w as m ade cashier of
th e F irst N ational B ank a t th e ir a n ­
nual m eeting in Gordon. Mr. Sorensen
has been w ith the in stitu tio n for about
tw elve y ears and has been an assistan t
cashier.
B. D. B erkheim er w ill continue as
vice presid en t of th e bank.

Ewing
At th e last m eeting of the board
of directors of th e F arm ers S tate Bank,
Ew ing, W m. R utledge w as elected
a ssistan t cashier.

Grand Island

S io u x City, Iowa

Northwestern Banker

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

February 19W

Claude A. Davis, attorney, w as elect­
ed a d irector of th e F irs t N ational
Bank, G rand Island. Mr. Davis, a
m em ber of th e law firm of Cleary, S uhr
and Davis, succeeds the late J. L.
Cleary on the b an k ’s directorate.
O ther directors chosen, all of th em
re-elected, w ere E. J. W olbach, I. R.
A lter, V. E. E vans, F. J. Cleary and
Oscar R eim ers.

51

Federal Member

SOUTH
DAKOTA
NEWS
W IL L IA M C. R E M P F E R
P r e sid e n t
P a r k sto n

Land Bank Sales
T he F all R iver and C uster counties
F ed eral L and b an k s division, of w hich
B. F. R ickenbach is sec re ta ry -tre a su r­
er, broke all its records for sale of
farm s in 1939, along w ith th e F ed eral
L and b an k s and th e state of South
Dakota.
A to tal of fifteen farm s w ere sold in
th e tw o counties d u rin g th e year. In
th e w eek before C hristm as alone, Mr.
R ickenbach repo rted , 3,100 acres, m ost­
ly C uster land, w ere sold for $10,745.
The South D akota record w as 857
farm s sold for $2,003,082.11 d u rin g
1939. In th e d istric t com prising South
D akota, Iowa, N ebraska and W yom ­
ing, 979 farm s w ere sold for a total
consideration of $4,023,328.50 durin g
th e year.

For Relief
Two F in n ish flags crossed over a
sign tellin g th a t funds for F in n ish
relief are accepted are featu red in
th e display space in th e lobby of th e
N o rth w est S ecurity N ational Bank,
Brookings.
A ccording to R. M. D ePuy, th is dis­
play space w ill be m ade available to
various of th e b a n k ’s custom ers.

G EO R G E

M. S T A R R IN G
S ecreta ry -T rea su rer
H u ro n

All o ther banks in the county are
collecting F in n ish relief funds, accord­
ing to officials of th e drive. The banks
m ake no exchange charges, handling
th e m oney solely as a convenience to
th e com m ittee collecting it.

Deadwood

P resid en t C. A. C hristopherson of
the U nion Savings Bank, Sioux Falls,
announced th e b an k had become a
m em ber of th e federal reserv e sys­
tem, facilities of w hich are now avail­
able at th e bank.
The new step is an o th er pro g res­
sive stride in th e affairs of th e bank,
w hich w as organized in 1894 as the
U nion Savings A ssociation, C hristo­
pherson said. It becam e a com m ercial
bank in 1925.

On Bank Staff
Two new m em bers w ere added to
th e staff of th e M iller F irs t N ational
Bank. T hey are M elvin Bondelid,
bookkeeper, and D avid Hylee, teller.
Bondelid w as form erly em ployed in
a b ank a t Lidgerw ood, N. D., and H ylle
came here from G rand F orks, N. D.

D.
J. H ull, vice presid en t and m an ­
Bank Resources
ager of th e N ew ell b ranch of the Black
D uring th e calendar y ear of 1939,
H ills N ational Bank, w as chosen to
th e board of directors. He succeeds P. th e resources of all South D akota
A. G u sh u rst of Lead, w ho has retired. state ban k s have increased $5,519,O ther board m em bers are C ham bers 484.20 or 14.3 p er cent. T otal deposits
K ellar, chairm an; T. D. M urrin, John have increased from $32,636,815.17 to
M. Ryan, M ason Tyler, Lead; H. S. $37,891,440.79, an increase of $5,254Black, A. A. Coburn, C. O. Gorder, Dr. 625.62 or 16.1 p er cent. Loans and
F. S. Howe and W. G. Rice, Deadwood; discounts have increased from $14,W. B. Penfold, Belle Fourche; F red 818,209.02 to $17,829,766.46, an increase
H am pton, Sturgis; C. C. A nderson, of $3,010,846.44 or 20.2 per cent, w hile
Jo h n A. Boland, R. E. Driscoll, W. H. the increase in U nited States G overn­
Joh n son and George Philip, Rapid m ent, S tate and M unicipal Bonds is
only $675,048.29 and o ther bonds and
City.
securities have actually decreased
M anagers of b ranches are Jo h n
R yan, Lead; C. O. Gorder, Deadwood; $380,055.51. T his clearly indicates th a t
W. B. Penfold, Belle Fourche; W alter banks w ould ra th e r invest th e ir funds
L. Voight, H ot Springs; D. J. Hull, in good sound local loans th a n p u r­
Newell; W. E. Dickey, Spearfish, and chase securities. In v estm en t in b an k ­
G. A- M cG arraugh, Sturgis. R. E. ing house, fu rn itu re and fixtures, other
Driscoll is presid en t of the R apid City real estate, and o ther p ro p erty has
decreased $109,796.98 d uring th e year.
office.

What South Dakota Statements Show
DECEMBER 30, 1939
T he N orthw estern B anker is pleased to publish B ank Statem ents received before going
to press— p u t us on your mailing list and send us your statements im m ediately after
each call. I f your bank is not included in th e list below it is because 1 OU did not send
in your statement. Please do so next time.
BANK
TOW N
C A S H IE R
A b e r d e e n ............ . . .A berdeen N a tio n a l............................
.$
C e n te r v ille ......... . . T he B an k o f ........................................
.
.
.E
u
rek
a
S
t
a
t
e
.......................................
E u r e k a .................
L ak e P r e s to n . . . . .C om m un ity S t a t e ................... ..
M itch ell. . . . . . . . . M itch ell N a tio n a l..............................
P ie r r e ................... . . F ir s t N a t io n a l.............. ......................
.
S io u x F a l ls . . . . . . F ir s t N a tio n a l.....................................
S io u x F a lls . . . . ..N o r t h w e s t S ecu rity N a t i o n a l ...
___ N o el W . K la r .............
R apid C ity .......... . . F ir st N a tio n a l......................... ..
V e r m illio n ......... . . C itizen s B an k & T r u s t...................
W a te r to w n . . . . . . .F a r m ers & M e r c h a n ts .....................
.
W a terto w n . . . . . . .F irst C itiz en s N a tio n a l...................
Y a n k to n .............. . . F i r s t D ak ota N a t io n a l..................


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

C apital

100,000
50,000
25.000
25,000
150,000
50,000
385,000
800,000
675.000
50,000
50,000
150,000
50,000

S u rp lu s and
P r o fits

L o a n s and
D isco u n ts

B on d s and
S ecu rities

S

$

$ 1,408,236
92,969
72,500
81,828
363,844
226,865
2,186,144
3,384,377
4,414,699
106,698
313,031
943,470
304,855

157,307
9,128
14,052
36,815
28.201
19,989
241,364
208,577
396,697
16,146
38,887
135,725
62,419

679,379
272,447
53,610
146,845
655,270
165,663
1,881,981
4,336.014
4,686,552
331,356
413,094
920,495
486,609

C ash and D ue
From B an k s

$

594,189
157,966
91,835
103,203
562,878
245,345
2,360,146
4,073,348
2,996,028
103,139
204,555
833,733
644,628

N orthw estern Banker

D ep o sits

$ 2,492,113

467,314
191,737
287,145
1,461,857
577,179
6,013,594
11,227,897
11,245,958
474,698
861,139
2,546,285
1,346,685

F ebruary 19k0

52

•

S O U T H

D A K O T A

N E W S

a t th e U nion Savings Bank, of w hich
C. A. C hristopherson is p resid en t and
tr u s t officer.
Officers and directors of th e N ational
B ank of South D akota also rem ained
th e same, w ith W. E. Stevens as p resi­
dent.

No Changes
One change w as m ade as Sioux
F alls banks held th e ir a n n u al elec­
tions.
The N o rth w est S ecurity N ational
Bank, w hich has b ran ch es a t B rook­
ings, C ham berlain, Dell Rapids, G reg­
ory, H u ro n and M adison, m ade th e
change. W alter K. Johnson, w as add­
ed as a ssista n t m an ag er at Gregory,
w h ere H. E. McKee is vice p resid en t
an d m anager.
No changes in p ersonnel w ere m ade

An abbreviated c h a rt on th e several
provisions of th e Social S ecurity law
has been prep ared by George Starring,
secretary of th e South D akota B ank­

OUT OF LINE ?
When you are about to buy or sell “Gov­
ernments,” how do you select the issue most
advantageously priced?

The ‘‘Northwestern’s’’ Bond Department
annually trades millions of government
bonds. Its staff is ready to give all corre­
spondent banks the benefit of years of ex­
perience and close contact with the market.
Service is no farther away than your tele­
phone, typewriter or telegraph.
•
D epartment of Banks and Bankers
F . W . Conrad
D. E. Croulky

V ice-President

A sst. V ice-P resident

A sst. C ashier

E . R oss Colburn

A sst. V ice-P resident

A sst. S ecreta ry

A sst. S ecretary

T rust C ompany

MINNEAPOLIS, MINNESOTA
Member Federal Deposit Insurance Corporation

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

February 19 W

Promotions
Of in te re st to resid en ts of H u ro n
and Sioux F alls are year-end prom o­
tions in th e staff of th e N ational B ank
of South D akota. D irectors of th e
b an k have elected A. E. Schnad of
H uron a vice p resid en t and have ad­
vanced Ole H. B ondhus, auditor, to
th e position of a ssistan t cashier. No
change in location for e ith er m an is
involved. Mr. Schnad w ill continue in
charge of th e H u ro n office and Mr.
B ondhus w ill be located in Sioux F alls
as a t present.

Heads Bank
J o h n A. M oorhead

M a r q u e tt e A v e n u e : S i x t h to S e v e n th S t r e e t

N orthwestern Banker

L ast y ear for th e th ird tim e since
1919, th ere w ere no b an k failures in
South Dakota. H isto rian s w ill record
1939 as th e only y ear since 1919 w hen
all South D akota ban k s rem ained
sound w ith o u t go v ern m en t assistance.
T here w ere no b an k failu res in 1934
and 1935 because m any banks received
financial stim u lan ts from th e Recon­
stru ctio n F inance C orporation.
O bservers a ttrib u te
considerable
credit for th e recovery of South Da­
k o ta’s financial h ealth to E rlin g Haugo, state su p erin ten d en t of banks, w ho
adm its “it’s m uch easier to close a
b an k th a n to help it solve it difficul­
ties.”
Since tak in g office J a n u a ry 3, H augo
has m ade and im p artiality cardinal
rules in dealing w ith state banks.

A sst. Cashier

N orthwestern N ational B ank
and

F. J. Cinkle, cashier of th e N ational
B ank of South D akota, Sioux Falls,
w as recen tly elected p resid en t of th e
Cospom olitan Club of th a t city, and
took office a sh o rt tim e ago.

L. P. Gisvold

B ond D epartment
W endell T. B u r n s

ers A ssociation, and d istrib u ted am ong
th e banks of th e state. B eginning
Ja n u a ry first, th is year, all ban k s come
u n d er th e provisions of th e act. The
ch art should be of g reat assistance to
th e banks of South Dakota.

Club President

Issues Chart

W HICH G O V E R N M E N T I S S U E S ARE

W m . N. J o hn so n

•

A ccording to w ord received from
Dixon, 111., w here he now resides, Wm.
H. M cM aster, fo rm erly a resid en t of
G ayville an d Y ankton, and w ho served
South D akota b oth as governor and as
U nited States senator, has been elected
to th e presidency of th e D ixon N a­
tional bank.
M cM aster took up residence in
D ixon about six y ears ago, a t th e
ex p iratio n of his te rm in th e senate.
Of his election to th e b an k

53
w ith th e Citizens N ational Bank, has
succeeded him as presid en t of th e lo­
cal in stitu tio n .
Mr. R enefick’s tim e is so tak en up
at M ankato th a t he declined re-elec­
tion to th e post and th e stockholders
unanim ously nam ed Mr. H oodecheck
to succeed him.
A t th e sam e tim e th e stockholders
elected O. C. N ew m an vice president,
prom oting him from th e a ssistan t
cashiership.

M IN N E S O T A
NEWS
A.

W IL L IA M D U N C A N ,
S ecr eta ry
M in n ea p o lis

B. LATHROP
P r e s id e n t
S t. P a u l

Owatonna
E n te rin g upon its seventy-fourth
y e a r as a b an k in g in stitu tio n in Owa­
tonna, and as th e elev en th oldest b an k
in o p eratio n in th e S tate of M innesota,
th e stockholders of th e F irs t N ational
B ank of O w atonna, a t th e ir an n u al
m eeting elected th e follow ing direc­
tors, for th e ensu in g year: A. C. Chap­
m an, J. H. M eyer, H. E. H anna, F. H.
Joesting, and A lb ert W ilker.
Follow ing th e sto ck h o ld ers’ m eeting
th e b o ard of d irecto rs elected A. C.
Chapm an, presid en t; J. H. M eyer, vice
p resid en t an d cashier; M. E. B rew ster,
assista n t cashier; C. J. LaRoue, a ssist­
a n t cashier.
Mr. LaR oue succeeds G. R. T u ttle
as a ssista n t cashier of th e bank.

Jr.

Brainerd

staff last year, w as in th e M inneapolis
office of th e F irs t Service corporation,
an affiliate of th e F irs t B ank Stock
Corporation.
Officers of th e th ree national banks
in M ankato w ere re-elected a t th e a n ­
nu al m eeting.

Virginia
S. R. R irb y w as re-elected p resident
of th e board of directors of th e F irst
N ational Bank, V irginia, at th e ann u al
re-organization m eeting.
T he board m eeting followed th e an ­
n u al stockholders’ m eeting a t w hich
tim e F red W. P o tte r w as nam ed cash­
ier to replace A. E. Shipley, w ho re ­
signed, and B yron E. S taver w as
nam ed a director.

Mankato

Slayton

B. W. R ough, a fo rm er a ssista n t
cash ier of an A u stin bank, w as elected
assista n t cash ier of th e F irs t N ational
B ank, M ankato, a t th e a n n u al b an k
m eeting. R ough, w ho joined th e b an k

A. W. H oodecheck, w ho succeeded
P. R. Renefick as resid en t m anager of
th e M urray County State Bank, Slay­
ton, upon th e d ep artu re of th e la tte r
for M ankato, w here he has a position

R esignations of B. L. L agerquist as
cashier and of H. R. W hite as au d ito r
of th e F irs t N ational Bank, B rainerd,
w ere announced. B oth m en also re ­
signed th e ir seats on th e board of di­
rectors.
T he resignations w ere accepted by
the board a t th e an n u al m eeting.
A t th e sam e tim e, th e board an ­
nounced th e election of G. C. F laata,
em ploye of th e ban k since 1919 and
a ssistan t cashier since 1925, as cashier,
and th e elevation of R. J. LeCourse,
an em ploye since 1929 to th e post of
a ssistan t cashier.

Lamberton
Stockholders of th e F arm ers & M er­
ch ants S tate B ank re-elected all direc­
tors and h eard a splendid rep o rt of the
y e a r’s business. The b an k increased
its su rp lu s $5,000, m aking it $20,000,
added $3,000 to th e building fund and
paid a 10 p er cent dividend. The stock­
holders also voted to am end th e a rti­
cles of incorporation to increase th e
deposit liability to $1,000,000, w hich

What Minnesota Statements Show
DECEMBER 30, 1939
The N orthw estern B anker is pleased to publish B ank Statem ents received before going
to press — p u t us on your mailing list and send U S your statem ents im m ediately after
each call. I f your bank is not included in th e list below it is because Y O i l did not send
in your statement. Please do so next time.
TOW N
BANK
A lb ert L e a . . ,
B e mi d j i . . . . . .
B e r th a ..............
B r a in e r d .........
C o n g e r ......... ..
C lo q u e t............
C osm os. . . . . .
C r o o k s to n .. . .
Dul ut h . . . . . .
D u lu th ..............
Dun n e l l . . . . . .
E lk R iv e r . . . ,
E ly .....................
E veleth . , , . . .
F a ir m o n t. . . .
F a r ib a u lt. . . .
F a r ib a u lt. . . .
F erg u s F a lls . ......... F erg u s F a lls N a t io n a l..........
F e rg u s F a lls .
H o p k in s . . . . .
J e ffe r s. ..........
L o n sd a le .........
M a d iso n .........
M a n k a to .........

C apital
. $ 150,000
100,000
25,000
50,000
10,000
100,000
10.000
100.000
.
100,000
. 1,000,000
30,000
25,000
50.000
45,000
.
110,000
50,000
.
125,000
.
100,000
.
100,000
50,000
25,000
20,000
. . . . F . J . M a c h a c ek . . . .
50,000
200,000
C A S H IE R

S u rp lu s and
P ro fits
$ 44,943
40,260
25,064
48,878
23,643
151,572
3,156
56,280
237,027
371,640
16,140
24,540
51,237
11,227
10,944
37,541
158,408
142,293
170,743
63,606
49,195
15,958
56,266
231,252

L oan s and
D isco u n ts
3
561,427
367,310
228,855
551,152
178,906
274,916
84,283
288,473
1,606,024
3,576.449
15,992
233,536
220,410
199,918
632,725
359,813
1,027,860
564,081
821,039
181,131
396,584
229,938
277,236
1,591,780

B o n d s and
S ecu rities
$
877,248
581,543
149,704
773,843
71,131
1,580,777
36,607
3,532,361
4,881,562
68,001
143,190
331,425
315,253
305,583
271,491
891,095
1,352,621
825,683
600,638
87,978
124,433
575,710
1,219,095

C ash and Due
From B an k s
$
540,991
409,342
81,470
454,387
39,383
766,474
40,864
535,510
2,547,219
5,714,000
26,826
109,202
746,972
210,069
222,196
130,838
514,609
483,019
564,802
318,153
43,569
73,762
192,337
1,591,987

N orthw estern B anker

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

D ep o sits
$ 1,849,404
1,246,725
413,365
1,625,592
257,510
2,395,070
107,043
1,232,471
7,240,365
12,832,917
225,751
455,335
1,183,642
697,500
1,045,233
703,832
2,214,161
2,208,824
1,969,096
1,005,815
457,822
400,751
929,083
4,084,073

F ebruary 19W

54
TOW N
BANK
C A S H IE R
M in n e a p o lis......... .F ir s t N a tio n a l..................................... . . . . J. G. M a c L e a n .........
M in n e a p o lis......... . M arqu ette N a tio n a l......... ..
M in n e a p o lis......... M idland N a tio n a l..............................
M in n ea p o lis......... . N o rth w e ster n Na t i o n a l . . . . . . . .
M o n tev id e o ............ .S ecu rity N a tio n a l. . . . . . . . . . . . . .
M o n tev id e o ............ .U n ion S t a t e .................. ......................
M o o rh ead .............. . F ir st N a tio n a l................................ .
M o ra ......................... . .K anabec S t a t e .....................................
N o r th fie ld .............. .F ir s t N a tio n a l.................. ..................
N o r th fie ld .............. .N orth field N a tio n a l.........................
Red W ing-.............. •Goodhue C o u n ty .................................
R edwood F a lls . . . .C itiz en s S t a t e .....................................
R o c h e ste r .............. . U n io n N a t io n a l................................
R u th to n .................. .F arm ers & M erch an ts S t a t e . . . .
S t. C h a r le s ........... F ir s t N a t io n a l..............................
S t. C lo u d ................ •St. Cloud S t a t e ......... ............... .. . . . ___ E. W . W e n d t...............
S t. P a u l.................. A m erican N a tio n a l. ........................
S t. P a u l.................. E m p ire N a t io n a l..............................
S t. P a u l................... •Fam ers & M e r c h a n ts ..................... ..
S t. P a u l.................. .First N a t io n a l......................... .. . . . .
S t. P a u l................... •F irst S t a t e ..........................................
S t. P a u l.............. .. . .M idw ay N a tio n a l..............................
S t. P a u l................... ■St. A n th o n y P ark S t a t e ................ . . . . G. H. G r ea v es.........
South S t. P a u l. . D rovers E x ch a n g e S ta te . ..............
South S t. P a u l. . . S tock Y ard s N a t io n a l.....................
Th>ef R iver F a lls . U n io n S t a t e ..........................................
V ir g in ia .................. W a te B an k o f .....................................
W a y z a ta ................. .W a y z a ta S t a t e ....................................
W e lls ....................... . P e o p les S t a t e .....................................
W h ite B ear L a k e. .F irst S t a t e .............................................
W illm a r .............. .. . .S ecu rity N a t io n a l..............................
W i n o n a . . . . . . . . . . F ir st N a t io n a l................... ............... ___ C. F. W it t .......................
W in o n a .................. .W in o n a N a tio n a l..............................

C apital
6,000,000
362,000
974,375
6,350,000
50,000
50.000
100,000
60,000
75,000
50,000
150.000
25.000
125,000
20,000
50.000
25,000
1,682,000
455,000
50,000
6,000,000
100,000
235,000
30,000
100,000
250,000
50,000
50.000
25,000
35,000
25,000
100,000
350,000
200,000

S u rp lu s and
P r o fits
8,293,343
280,425
607,393
4,534,130
101,517
31,141
70,685
57,424
72,664
58,171
102,779
77,404
75,300
18,826
26,818
23,831
610,342
263,613
45,633
7,701,247
115,908
189,500
15,555
65.674
248,956
69,253
59,360
35,458
35,000
15,400
26,705
232,301
267,167

L oans and
D isco u n ts
39,818,104
3,249.442
7,606,845
44,686,537
220,876
418,266
699,965
529,553
295,416
142,483
608,542
410,492
585,258
242,068
330,028
283,966
5,215,373
4,086,003
334,301
49,975,684
413,342
1,552,155
213,443
1,101,609
2,475,703
370,864
355,567
344,278
213,169
137,593
264,751
1,488,444
1,252,843

w as m ade necessary by th e g ro w th of
th e bank. D eposits on D ecem ber 30
had reached $483,299.71.

tion board w as installed on the ceil­
ing and tile floors laid. In d irect lig h t­
ing w as also installed.

Brief News

The N ational C itizens Bank, Man­
kato, has com pleted rem odeling the

The F irst N ational Bank, Frem ont,

recen tly com pleted rem odeling of th e
in terio r of th e bank. The high g rill
w ork w as rem oved from aro u n d th e
te lle rs’ cages and new low type coun­
te rs installed in its place. Composi­


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

te lle rs’ cages in th e com m ercial de­
p artm en t.
W orkm en w ere busy last m onth on
an extensive rem odeling job of th e in ­

B onds and
S ecu rities
52,506,245
691,947
5,644,817
52,907,892
710,360
127,002
338,446
254,005
600,361
439,094
1,318,210
246,354
787,996
65,870
307,827
20,044
16,545,073
1,914,675
886,152
28,041,046
1,827,201
2,536,032
183,513
761,398
1,595,576
475,475
594,523
112,455
140,950
120,661
626,880
3,177,503
2,317,516

Cash and D ue
From B an k s
67,073.729
2,852,314
5,794,295
47,336,584
307,895
92,148
370,557
282,413
280,499
108,569
631,101
621,861
772,684
63,387
130,385
109,383
10,102,385
3,542,858
666,798
74,999,781
299,051
1,717,574
246,712
477,822
2,608,617
245,125
376,759
82,304
155,558
197,301
309,400
1,419,277
939,499

D ep o sits
153,209,494
6,328,972
17,471,693
136,666,283
1,090,279
578,741
1,284,928
1,063,022
1,035,514
600,596
2,376,420
1,184,161
1,977,689
350,630
705,244
378,870
29,318,507
8,685,448
1,786,874
141,706,202
2,364,375
5,289,072
594,024
2,119,277
6,212,474
997,064
1,215.593
493,465
445,178
428,663
1,120,208
5,726,679
4,235,159

te rio r of th e M idland N ational Bank
& T rust Com pany, M inneapolis. The
high grill w ork around th e te lle rs’
cages is being replaced w ith new low
box type cages. W orkroom s are being
renovated and enlarged and th e lig h t­
ing arran g em en t im proved.
Em­
ployes’ recreatio n and re st room s
have been added and th e en tire in ­
te rio r w ill be redecorated as w ell as
m any o ther im provem ents.

T w in C ity N ew s

T H IR D

N o rth w e ste rn N a t i o n a l
B ank, M inneapolis, added tw o m en
to its board of directors: N. P. E klund
of E k lu n d C lothing Com pany, and
L. TV. Schirm er, S chirm er-S trasburg
T ra n sp o rta tio n Co.
N early 70 b an k ers atten d ed th e a n ­
nu al conference in St. P aul of re p re ­
sen tativ es of B rem er banks, held at
the A thletic Club. George J. Johnson,
vice p resid en t, A m erican N ational
Bank, w as ch airm an and to astm aster
a t th e a n n u al banquet. M any of th e
delegates visited Otto Brem er, w here
he w as recu p eratin g from in ju ries
suffered in a fall w hich p rev en ted his
atten d in g th e m eeting.
T echnical problem s of loaning offi­
cers w ere discussed a t a regional con­
ference of R obert M orris associates,
sponsored by its M innesota chapter.
N early 100 b an k ers from six m id­
w est states atten d ed and h e a rd talk s
by R. M. A. P re sid e n t R aym ond F.
L einen, S ecretary A lexan d er W all and
th re e in d u strialists: W. T. D ietrich,
secretary , M innesota V alley C anning
Co.; D onald D. D avis, president, G en­
eral Mills, Inc., and W. H. E astm an,
vice president, A rcher-D aniels-M idland
Co.
W illiam J. Gratz, St. Paul, M inne­
sota ch ap ter president, presided. The
one-day conference w ound up w ith
a reception and dinner.
J. R. R id gw ay, Jr., has been nam ed
m an ag er of th e M inneapolis agency of
In v esto rs Syndicate by G. G. Y oung
and Paul K oughan, co-divisional m an ­
agers of th e M innesota and D akota
territo ries.
A ctive w ith the com pany in an
executive capacity for six years, Mr.
R idgw ay has been in th e m ortgage
loan division of th e com pany. Jam es
S. Lane, a ssista n t ad v ertisin g map-

By James M. Sutherland
Sp ecia l C orre spon de nt

ager, has joined Mr. R idgw ay in the
sales organization. L ane w ill continue
to edit the com pany’s field m agazine.
F a rm ers & M echanics Savings B ank
added tw o officers to th e staff at the
an n u al m eeting. P eter D. E sau, m an ­
ager of the school savings d ep artm en t
and w ith the bank 15 years, w as
nam ed a ssistan t secretary, and L ow ry
S. Moore, w ho has served in the m ort­
gage d ep artm en t a sim ilar tim e, w as
m ade a ssistan t treasu rer.
E dgar L. M attson, president, Mid­
land N ational B ank & T ru st Company,
w as elected presid en t of th e M inne­
apolis Clearing H ouse A ssociation at

M innesota state banks increased
loans and discounts $14,821,000 d uring
1939, according to a re p o rt of F . A.
A m undson, state bank ing com m ission­
er. The rep o rt covered 484 banks, one
savings b ank and five tru s t com panies.
M iss C. M ildred Speranza, d au ghter
of Santo Speranza, presid en t of the
Produce E xchange Bank, St. Paul, w as
elected second vice presid en t of the
b ank a t th e an n u al m eeting.

This is the season for
marketing
feed lot livestock
An account with us will be profit­
able to any bank located in the
feed in g territory tributary to this
market.
We invite you to m ake use o f
our facilities.
W e In vite Y our A ccount

E D G A R L. M A T T S O N

th e ann u al m eeting. L ym an E. W ake­
field, president, F irs t N ational B ank &
T ru st Co., w as nam ed vice president.
J. S. Pom eroy, vice president, F irs t
N ational, continues as m anager.

STOCK YARDS
NATIONAL BANK
SOUTH ST. PAUL, MINNESOTA
M ember Federal D eposit Insurance
C orporation

N orthw estern Banker

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

Februar y 19 40

56

•MINNESOTA
A nn u al m eetings of T w in City b anks
resu lte d in few changes in m ajor
officers, b u t th e u sual changes in
ju n io r officers an d directors.
A t N o rth w e ste rn N ational B ank &
T ru s t com pany, F red W. Conrad and
F ran k C. O’B rien w ere prom oted from
a ssista n t cash iers to a ssista n t vice
presid en ts, an d W en d ell T. B u rn s from
a ssista n t se cretary to a ssista n t vice
president. John W. M oorhead w as
elected a ssista n t se cretary and H er­
m an P. M eder a ssista n t cashier. J.

NEWS-

N ich olas R en ck en s w as m ade assistan t
m an ag er of th e N orth A m erican office
an d R aym ond J. S everson w as m ade
a ssistan t m anager of the Lake S treet
office.
F irs t N ational B ank & T ru st Co.
d irectors elected A lan Moore assistan t
cashier and appointed M. M. Hansm ann a ssistan t m anager of th e N orth
Side office. Moore is th e son of the
late B. V. Moore, vice chairm an of
th e b a n k ’s tru s t com m ittee at the
tim e of his death last A ugust.

B ank Shares corporation, M inne­
apolis, voted a dividend of 50 cents a
sh are for th e last half of 1939 a t th e
an n u al m eeting. T he dividend am ounts
to $17,500 on 35,000 sh ares o u tstan d ­
ing.

Economic trends come and
go, but FARMING remains
the foundation of Ameri­
can prosperity. And farming is profitable in direct
ratio to the time and labor-saving capacity of the
farm machinery used. . . . The modern point-ofview dem ands more and more CO-OPERATION
betw een the leading elements of our economic
structure. Farmer, dealer, banker, are three of
these elements, and Minneapolis-Moline Modern
Machinery is an IMPORTANT point of mutual
contact.

W illiam E. Brockm an, new vice
p resid en t of M idland N ational B ank
& T ru st Co., w as gu est sp eaker a t a
m eeting given by A llis-Chalm ers M an­
u factu rin g Co. a t M ason City, Iowa.
It w as atten d ed by m ore th a n 100 dis­
trib u to rs of so u th ern M innesota and
n o rth e rn Iowa.

N et operating earnings of F irs t N a­
tional B ank of St. P aul w ere $965,177
in 1939, R. C. L illy , president, rep o rted
a t th e an n u al m eeting. T his is $4,029
less th a n in 1938. D ividends to taling
$600,000, or ten p er cent on th e capital
stock, w ere paid in 1939.

In 1940 thousands of deserving farmers will
want and need new MM Tractors and Machines,
and often only through the ''cred it'' co-operation
of MM dealers and bankers will purchasing be
possible. Amazing new Tractors and Farm Ma­
chines are featured among the 1940 MM H ead­
liners. Farmers enabled to use this better equ ip ­
ment will not only be raising their own incomes
but indirectly creating better business for MM
dealers, bankers, and the community at large.
BRANCHES

NEAR

EVERYWHERE

M inneapolis - M oline

P O W E R IM P L E M E N T C O M P A N Y
N orthw estern B anker

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

February 19W

M idland N ational B ank & T ru st Co.
stockholders elected th ree new direc­
tors: Charles B. Jordan, president and
m anager, Jordan-Stevens Company; J.
R. Randall, president, R eserve Supply
Company, and B en C. McCabe, p resi­
dent, McCabe B ro th ers Com pany and
In te rn a tio n a l E lev ato r Co.
A t Second N o rth w este rn State Bank,
Carl P. Gerber, vice president, w as
nam ed a d irector also.
R onald B. H arrison w as elected an
a ssistan t cashier of M arquette N a­
tional Bank.
F o u rth N o rth w estern N ational B ank
stockholders added C. L. N ashy and
E. J. Sim ons to th e board of directors.
Mr. N asby is au d ito r of th e N orw egian
L u th e ra n C hurch of Am erica, Mr.
Sim ons is vice p resid en t and general
m anager of Simons, Inc., and tre a s­
u re r of th e H en ry Sim ons L um ber
Company.
R. O. T h ayer w as prom oted from
cashier to vice p resid en t of F ifth
N o rth w estern N ational Bank, w ith
M artin M cD onough advanced from
a ssistan t cashier to cashier and Stan­
ley A. F rees nam ed a ssistan t cashier.

MINNESOTA

T he M inneapolis Clearing H ouse
association w ill play host F e b ru a ry 22
to th e an n u al m eeting of Group one,
W isconsin B ankers A ssociation. On
th e clearing house com m ittee for th e
m eeting are O. H. Odin, executive vice
president, M arquette N ational bank;
L. O. Olson, cashier, M idland N ational
B ank & T ru st Co., J. J. M aloney, as­
sista n t cashier, F irs t N ational B ank &
T ru st Co., and F red W . Conrad, new
a ssistan t vice president, N o rth w estern
N ational B ank & T ru st Co.

ier, and H. C. D ahl and C. F. A nderson,
a ssistan t cashiers, w ere renam ed.
H a rry M. G rant, president; C. H.
Z ehringer, vice president; J. S. W estlake, cashier, and A rth u r R. F reeh,
a ssistan t cashier, of th e U nion N a­
tional Bank, w ere re-elected.

NORTH
DAKOTA
NEWS

Charter Changed

C. C. W A T T A M
S ecr eta ry
F argo

F R A N K R . SCO TT
P r e sid e n t
F argo

stock) in th e country, I look for m uch
b e tte r conditions in 1940.”
All officers and d irecto rs of V alley
Officers elected are Mr. C unning­
C ity’s tw o b an kin g in stitu tio n s—The ham , president; R. G. R asm ussen, cash­
A m erican N ational B ank an d The ier, Mrs. A. F. W indell and W m. E.
F irs t N ational B ank—w ere re-elected M onroe, vice presidents, and L otta L.
a t a n n u a l m eetings.
C unningham , director.
A.
C. T hork elso n co ntinues as p resi­
d en t of T he A m erican N ational B ank,
w ith R. M. H ougen, vice p resid en t and
Rhame
cashier, and M agne M ickelson, a ssist­
E a rn in g s an d dividends of the B ank
a n t cashier. T he d irecto rs are K arl of R ham e have show n a sub stan tial
J. Olsen, Roy A. P loylar, W illiam L. increase du rin g th e p ast year, Vice
Paulson, Mr. T h o rtelso n and Mr. H ou­ P re sid en t C. H estekin inform ed di­
gen.
recto rs and stockholders at th e annual
E rie L. F o u lk s rem ain s as p resid en t m eeting.
of T he F irs t N ational Bank. L. T.
D onald S tew art of Bow m an w as
Sproul is vice p resident; J. T. Sanger, elected a d irector to fill th e place v a­
cashier; D onald W. B ucknan, a ssista n t cated by L. Skielset, D rayton, resigned.
cashier, and J. M. C onnors and L. H. Officers elected are E. J. W atson, p res­
Ickler, Jr., directors.
ident; C. H estekin, vice president, and
R. H estekin, cashier.

Valley City

Williston
Im proved bu sin ess in 1939 and p ro s­
pects for a b e tte r y e a r in 1940 w ere
rep o rte d to stockholders of th e F irs t
an d C om m ercial N ational B ank, W illis­
ton, a t th e ir a n n u al m eeting.
“T he p a st y e a r w as th e b est for a
n u m b er of y e a rs,” declared P re sid e n t
J. A rth u r C unninghom , “and consid­
erin g th e price of g rain and th e
am o u n t of produce (including live­

Minot
Officers of tw o banks, th e U nion N a­
tio n al and th e F irs t N ational, Minot,
w ere re-elected at an n u al directo rs’
m eetings.
A t th e F irs t N ational B ank R. E.
B arron, president; Dr. A rchie McCannel, R. A. H. B ran d t and H. E. Byorum , vice president; W. E. Tooley, cash­

The F irs t N ational B ank of H u n te r
w ill operate u n d er a state ch arter, O.
W. P a rk h u rst, president, announced.
D irectors of th e new S ecurity S tate
B ank have already secured th e ch ar­
te r from th e state. D ecreased cost of
operation is th e reason for th e change.

Debits
F argo in 1939 established the best
record of b an k debits in th e last eight
years, w hich is as far back as th e
debit figures are available.
A ccording to th e official records, ex­
cept for th e last tw o days of th e y e a r
w hich are estim ated as averaging w ith
th e re st of Decem ber, F arg o ’s 1939
b an k debits ra n to $218,651,000, com­
pared w ith $208,168,000 last y e a r and
th e previous high year, 1937, w hen
th ey w ere $217,805,000.

Bismarck
J. P. W agner, vice p resid en t of th e
D akota N ational B ank and T ru st Co.,
B ism arck, for th e last 10 years, an ­
nounced his resignation from th a t
position.
H e intends, he said, to en ter th e
insurance, loan and in v estm en t busi­
ness in B ism arck and w ill announce
fu rth e r plans shortly.
No action w as tak en to appoint a
successor and th e position probably
w ill be left vacan t for a tim e. If
necessary, P resid en t F. B. H eath said,
one of th e p resen t m em bers of th e
board of directors w ill be nam ed to

What North Dakota Statements Show
DECEMBER 30, 1939
T h e N o r t h w e s t e r n B a n k e r is p le a s e d to p u b l i s h B a n k S ta te m e n ts r e c e iv e d b e fo r e g o in g
to p r e s s — p u t u s o n y o u r m a ilin g lis t a n d s e n d u s y o u r s ta te m e n ts im m e d i a t e l y a fte r
e a c h ca ll.

I f y o u r b a n k is n o t in c lu d e d in t h e lis t b e lo w it is b e c a u s e Y O U d i d n o t s e n d
i n y o u r s ta te m e n t. P le a s e d o so n e x t tim e .

C A S H IE R
BANK
.$
. . .D ak ota N a t’l B an k & T r u st.
.
. . . F i r s t N a t io n a l............................
. . F o ste r C oun ty S t a t e ................
. . . F i r s t N a t io n a l............................
. . . F i r s t N a t io n a l............................ ................ J. P . F a r r e ll............... .
. . .M e rch a n ts N a tio n a l................ .................C. H. O lso n .................
. . T h e N a tio n a l B a n k .................. ................ E . W . M u e lle r ............
.
. . U n io n N a t io n a l..........................
R u g b y ................... . . C itiz en s S t a t e ..............................
V a lle y C ity . . . . . .A m erica n N a t io n a l..................
V a lle y C ity . . . . . . . F i r s t N a t io n a l............................
W a tfo rd C ity . . . . . F ir s t I n te r n a tio n a l...................
TOW N

C ap ita l
100,000
200,000
30,000
25,000
500,000
150,000
100.000
100,000
25,000
50,000
50,000
15,000

S u rp lu s and
P r o fits
$ 66,958
218,816
73,339
31,812
218,167
225,742
42,550
38,559
26,457
24,466
65,315
3,138

L o a n s and
D isco u n ts
$ 586,858
1,047,949
224,203
316,810
3,003,319
1,642,177
465,088
385,378
119,750
281,674
341,114
60,240

B o n d s and
S e c u r itie s
462,199
1,642,462
131,232
127,393
1,984,525
1,447,186
549,812
430,593
395,468
218,324
300,381
95,415

$

C ash and D ue
From B a n k s
8
294,710
898,969
113,065
74,006
2,419,413
1,139,794
295,516
277,131
105,835
166,751
194,762
74,764

N orthw estern B anker

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

D ep o sits

$ 1,241,487
3,285,303
442,323
453,380
7,064,608
3,903,235
1,197,953
1,040,680
569,338
643,255
762,772
198,634

F ebruary 19b0

58

• NORTH
th e post b u t w ill not be expected to
perfo rm executive duties.
D irectors of th e b ank w ho w ere re ­
elected at th e an n u al stockholders
m eeting are A. M. B randt, F. M. Da­
vis, J. E. Davis, T heodore Q uanrud,
Louis Rubin, R. B. W ebb, J. C. Oberg,
J. C. T aylor and F. B. H eath.
H eath w as re-elected president.
All d irectors of th e F irs t N ational
B ank of B ism arck w ere re-elected and
all officers w ere re-elected except one.
He w as R ichard B arry, a ssista n t cash­
ier, w ho resigned his position to ac­
cept an o th e r in Fargo.

DAKOTA

NEWS

Re-elected by the directors w ere C.
B. L ittle, president; E. D. Saltzm an,
vice president; N. I. Roop, vice p resi­
dent; B. F. Law yer, cashier; H. E.
H anson, assistan t cashier; and L. P.
W arren, a ssistan t cashier.

Jamestown
The Jam es R iver N ational B ank and
the N ational B ank of Jam estow n elect­
ed officers a t an n u al m eetings.
R. W. D elaney w as elected presi­
dent of the Jam es R iver N ational
B ank and th e o th er officers are: A.
J. R ulon, vice president; M. J. Gret-

The First National Bank
of Chicago
Statem ent of Condition December 30, 1939
ASSETS
Cash and D u e from B a n k s ,...................................................$ 4 1 6 ,5 9 2 ,7 5 6 .4 8
U n ited States O b ligation s—Direct and fully Guaranteed,
U n p l e d g e d , .........................................$ 2 8 2 ,8 0 5 ,5 8 2 .6 2
P led ged —To Secure Public Deposits and
Deposits Subject to Federal Court Order, 3 3 ,5 6 8 ,7 4 0 .9 8
To Secure Trust Deposits,
.
.
5 3 ,1 2 6 ,8 5 3 .5 8
Under Trust Act of Illinois, .
.
5 5 0 ,0 0 0 .0 0
O ther B on d s and Securities,
.
.
.
.
Loans and D iscou n ts, .
.
.
.
.
.
.
Real Estate (B a n k B uilding),
.
.
.
.
O ther R eal E s t a t e , ...................................................
Federal R eserve B ank Stock,

.

.

.

C ustom ers’ Liability A cco u n t o f A cceptances,
Interest Earned, n o t C ollected , .
.
.
O ther A s s e t s , ...................................................

.
.

3 7 0 ,0 5 1 ,1 7 7 .1 8
7 6 ,9 4 9 ,1 4 3 .0 3
2 5 0 ,3 9 9 ,2 9 4 .1 3
5 ,8 2 9 ,4 0 4 .2 1
1 ,1 4 3 ,4 1 6 .0 6
1 ,9 5 0 ,0 0 0 .0 0
2 ,1 3 7 ,9 9 0 .5 4
2 ,9 6 7 ,5 6 1 .3 2
1 4 1 ,8 6 0 .1 9
$ 1 ,1 2 8 ,1 6 2 ,6 0 3 .1 4

LIABILITIES
C apital S tock —C o m m o n ,
.
.
.
.
.
Surplus F u n d , .............................................................

.

O ther U n d iv id ed P r o f i t s , .........................................
D iscou n t C ollected but n o t Earned, .
D ividends D eclared, but U n p a id ,
Reserve for T axes, e t c . , .........................................
Liability A cco u n t o f A cceptances,
T im e D eposits,
.
D em and D eposits,

.

.
.

.
.

.

$ 3 0 ,0 0 0 ,0 0 0 .0 0
3 5 ,0 0 0 ,0 0 0 .0 0
3 ,9 5 2 ,2 8 0 .0 0
5 9 0 ,4 2 5 .7 6
6 0 0 ,0 0 0 .0 0
2 ,1 6 6 ,9 7 8 .8 6
2 ,4 2 8 ,3 8 7 .9 7

$ 1 8 3 ,1 2 2 ,4 9 7 .7 7
7 9 6 ,2 8 7 ,8 6 5 .4 4

D eposits o f P u b lic F unds, .
.
7 4 ,0 1 3 ,9 9 9 .4 3 1 ,0 5 3 ,4 2 4 ,3 6 2 .6 4
Liabilities oth er than th ose above stated, .
.
.
167.91
$ 1 ,1 2 8 ,1 6 2 ,6 0 3 .1 4

N orthw estern B anker

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

F ebruary 19)0

•

tenberg, cashier; E. W. H auser, as­
sistan t Cashier; Mr. Delaney, Mr.
Rulon, Mr. G rettenberg, Mr. H au ser
and Clifton Johnson, m em bers of the
board of directors.
L. H. Ickler, Jr., w as elected p re s­
ident of th e N ational Bank; Dr. P.
G. A rzt, vice president; F. A. B urton,
vice president; E. W. M ueller, cashier;
R. R. W olfer, chairm an of th e board
of directors w ith Mr. Ickler, Dr. Arzt,
Mr. B urton, Mr. M ueller and H. G.
P rocter, Sr., m em bers.

M ott
E. H. T rousdale w as nam ed p resi­
d en t of th e F irs t N ational B ank of
M ott at an n u al m eeting of directors
and stockholders. W. T. M itchell w as
nam ed cashier, Jo h n Gifford, a ssistan t
cashier and R. V. Trousdale, a ssistan t
cashier. R enam ed as directors w ere
E. H. Trousdale, W. T. M itchell, W. F.
R ueter and Charles M utschelknaus.

Bowbells
At a m eeting of the board of direc­
to rs of F irs t N ational B ank in Bowbells, F ay C. W iper w as elected p resi­
dent of th e bank to succeed his father,
the late A. C. “Sandy” W iper.
R obert W iper, an o th er son, w as
elected vice president. H. M. Westru m w as renam ed cashier, and H arold
W estrum w as nam ed assistan t cashier.

Grand Forks
A nnual stockholders m eetings and
elections w ere conducted recen tly in
G rand Forks.
One new director, C arth er Jackson,
w as added and o th er officers and direc­
to rs of th e F irst N ational B ank w ere
renam ed. O ther directors are Dr. R.
D. Campbell, George O. Colborn, C. J.
M urphy, M. W. M urray, F red R. O rth
and W. R. V anderhoef.
Officers are Dr. Campbell, ch airm an
of th e board; O rth, president; M urray,
vice president; Jackson, cashier and
tru s t officer; H arold S. Pond, M artin
Lystad, Oscar N orby and A. M. Lornm en, a ssistan t cashiers.
Officers and directors of the N o rth ­
w estern T ru st Co. w ere re-elected.
Officers are F red L. Goodman, p resi­
dent; Dr. J. G rassick, vice president;
M. C. B acheller, secretary and tre a s­
urer; and B. W estley, assistan t secre­
tary.
B oard m em bers elected by th e Red
R iver N ational w ere A. G. B jerken, O.
B. B urtness, E. F. C handler, F. C.
G ustafsson, H en ry Holt, J. E. MacLean, Dr. W. H. W itherstine, Jo h n L.
R yan and Don E. W hitm an.

59
m en to g eth er w ith H. T. H edden com­
prise th e board of directors.

M O NTANA NEWS

Lewiston
A t the an n u al m eeting of th e N a­
tional B ank of Lew istow n, th e follow­
ing w ere elected as directors for the
ensuing year: H a rry E. Lay, Cassius
C. W illiam son, R ichard S. B aker and
A. W. Johnson.
The ad m in istrativ e staff for 1940 w as
com pleted later by th e re-election of
all officers: A. W. Johnson, president;
H a rry E. Lay, vice president; R. S.
Baker, cashier.

ETH EL W. W ALKER
S ecreta ry -T rea su rer
H elen a

O. M. JO R G E N S O N
P r esid en t
B illin g s

Board Member
Alex C unningham , vice p resid en t
and tre a s u re r of th e W estern Life
In su ran ce Co., w as nam ed ch airm an
of th e board of d irecto rs of th e H elena
F ed eral R eserve B ranch B ank at th e
an n u al m eeting.
Mr. C unningham w as nam ed to th e
board last year.
O ther m em bers of th e board are:
H. D. M yrick, Square Butte; A. R. Mc­
D erm ott, Billings; P e te r Pauly, Deer
Lodge, and R. E. Towle, m anaging
directo r of the bank. Mr. Towle was
nam ed ch airm an of th e executive com ­
m ittee.

Billings
Officers and directo rs of Billings
th re e b anks for 1940 w ere announced
follow ing an n u al stockholders m eet­
ings. The staffs of each b an k rem ain
the sam e as last year.
A t th e M idland N ational Bank, E.

T. M cCanna w ill continue as president;
F. T. M errill, vice president; A. R.
H am m er, cashier; E. P. Frizelle and
F. S. W ebb, a ssistan t cashiers; M. A.
Brow n, a ssistan t tru s t officer, a n d ' R.
E. H unt, auditor.
T here w ere no changes in th e direc­
to rsh ip w hich is composed of C. M.
Bair, F. C. Cline, J. W. Currie, J. B.
A rnold and Mr. McCanna.
A. H. M arble w as renam ed president
of th e M ontana N ational Bank, and
A. R. M cD erm ott and F. W. M arble,
vice presidents. The rem ain d er of
th e staff is com posed of F. N. Sauer,
cashier; J. E. Vogel and H. E. K insley,
a ssistan t cashiers. These m en m ake
up the board of directors, w ith the
exception of F. W. M arble.
W. E. W aldron w as renam ed p resi­
d en t of th e Security T ru st and Sav­
ings Bank; W. B. V aughan, vice p resi­
dent; O. M. Jorgenson, cashier and R.
M. W aters, a ssistan t cashier. These

Deer Lodge
Officers of the D eer Lodge B ank and
T ru st Com pany w ere elected for the
y ear 1940.
P eter P au ly w as re-elected president;
S. J. Pauly, vice president; J. M aurice
D ietrich, cashier; H. W. Howell, as­
sistan t cashier; T. C. Laughlin, assist­
a n t cashier, w ere all re-elected, also.
The sam e personnel of th e bank, in ­
cluding Miss R uth Lintz, H en ry H ukill
and Jack A th earn w as retained.

Dillon
R ecently officers and m em bers of
the board of directors of th e tw o Dil­
lon banks w ere nam ed at an n u al busi­
ness m eetings.
Re-elected to th e board of directors
of the F irs t N ational B ank w ere J. A.
Sanderson and O. B. Silvey, both of
Anaconda; W. W. H aw kins, J. W.
Rees and G. D. Combes, all of Dillon.
Officers re-elected for 1940 include G.

What Montana Statements Show
DECEMBER 30, 1939
T he 1\orthivestern B anker is pleased to publish B ank Statem ents received before going
to press— p u t us on your mailing list and send us your statem ents im m ediately after
each call. I f your bank is not included in the list beloiv it is because YO U did not send
in your statement. Please do so next time.
BANK
C A S H IE R
TOW N
A n a c o n d a ......... . . . D a ly B an k & T ru st Co.................... . . . . 0 . B. S ilv e y ..............
Big- T im b e r . . . . . . C i t i z e n s B an k & T r u s t ..................
B il lin g s .............. . . .M id lan d N a tio n a l..............................
B il lin g s .............. ...S e c u r i t y T ru st & S a v in g s ............
B o z e m a n ............ . . .S e c u r ity T r u s t .....................................
B u t t e ................... . . M e ta ls B an k & T r u s t.............................. R. W. P la c e ...........
B u t t e ................... . . .M in e rs N a tio n a l .............................. . . . . T. J. F e n lo n ............
C o lu m b u s......... . . . Y e llo w sto n e B a n k ......... .................
C ut B a n k ......... . . B an k o f G lacier Co...........................
D illo n ................ . . . .F irst N a t io n a l.....................................
D illo n ................ . . . .S ta te B an k & T r u s t .........................
F o r s y th .............. . . .F o r sy th S t a t e .....................................
F r o id ................... . . . F ir st S ta te B a n k ................................
M erch an ts N a t io n a l.........................
G le n d iv e ............
G reat F a l ls . . . . . . F ir s t N a t io n a l.............................. .. . .
M on tan a B an k & T ru st Co.........
G reat F a lls . . .
K a lis p e ll............ . .. C onrad N a tio n a l ..............................
M iss o u la ......... .. . . . F irst N a t io n a l..................................... . . . . F . M. E ll io t t ............
P le n ty w ood. , . . . . S ecu rity S t a t e .....................................
R o n a n ................. . . , R on an S t a t e .......................................
S id n e y ......... .. . . ...S i d n e y N a t io n a l.................................
S ta n fo r d ............ . . .B a s in S ta te B a n k ..............................
S t e v e n s v ille .. . . . . F i r s t S t a t e ...........................................
W h itefish . . . . . . . F ir st N a tio n a l B an k o f ................... . . . . P . C. L illy ..............

. .$
..
..
..

..
..

C apital
200,000
100,000
200,000
100,000
100,000
600,000
100.000
70,000
30,000
100.000
100.000
25,000
40,000
60,000
100,000
250.000
200.000
30,000
30.000
25,000
35,000
50.000

S u rp lu s and
P ro fits
$
123,380
29,450
210,428
140,881
57,599
625,838
42,217
33,221
12,536
122,370
70,000
41,414
3,614
45,230
417,000
157,755
88,647
158.738
10,153
34,882
12,651
17,000
6,501
8,196

L o a n s and
D isco u n ts
$
650,485
296,856
1,144,134
1,849,977
339,635
1,621,352
318,327
285,340
149,952
337,055
1,095.064
179,616
167,705
52,799
2,167,166
1,040,096
755,289
627.129
92,548
229,231
178,404
249,872
198,934
142,215

B on d s and
S ecu rities
$ 2,367,941
185,337
2,077,180
625,767
216.941
6.120.826
463,401
136,647
126,398
762,830
446,315
347,713
79,454
370,632
4,282,069
1,275,666
1,143,230
1,144,987
135,462
77,133
87,725
157,081
51,788
346,195

C ash and D ue
F rom B an k s
S 1,134,470
541,632
2,420,196
1,378,450
481,907
6,433,552
718,171
108,362
194,320
519,002
281,639
160,049
92,272
318,263
4,238,393
857,252
1,483,802
2,962,993
194,442
220,274
192.220
136,196
69.713
204,641

N orthw estern Banker

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

D ep o sits
$ 3,893,392
904,187
5,338,188
3,594,369
904,384
13,055,074
1,417,192
503,720
431,061
1,426,309
1,672,020
633.199
312,918
661,966
10,042,369
2,991,491
3,134,545
4,487.617
389,840
473,060
438,349
506,214
288,860
670,109

F ebruary 19W

60

I

f

one-third of your deposits

consisted of funds of custo­
mers engaged in one industry,
it would be to your interest to
keep well posted as to the
needs of such industry so that
you might serve these deposi­
tors well.
We accept that theory as
sound policy. We therefore
specialize in the facilities we
provide for and extend to our
bank correspondents whose
funds in our hands constitute
one-third of our deposit lia­
bilities.
... THE ...

PHILADELPHIA
NATIONAL BANK
O R G A N IZ E D 1803

PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$ 4 2 ,0 0 0 ,0 0 0
Member of Federal Deposit Insurance Corporation

N orthw estern B anker


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

F ebruary I9W

D. Combes, president; W. W. H aw kins,
vice president; J. A. Sanderson, vice
president; J. W. Rees, cashier, and A.
M. Jones, a ssistan t cashier.
A t th e U nion B ank and T ru st Com­
p any R. M. B a rre tt w as re-elected
president, Sam W ilkinson, vice p resi­
dent; R. M. Stone, cashier, and M orris
Adams, a ssistan t cashier. T hese sam e
officers co n stitu te th e board of direc­
tors.

Havre
Old officers and directors of th e
M ontana N ational Bank, H avre, w ere
re-elected a t th e recen t an n u al m eet­
ing. The officers include th e follow ­
ing: F. M. Cowan, president; W illiam
Kendig, vice president; A. F. Lam ey,
vice president; Irl W atson, vice p resi­
dent, also continuing as m anager; Don
Creel, cashier; and R aym ond F. Achen,
assistan t cashier.

Miles City
Claude M. Jones w as re-elected
presid en t of th e F irs t N ational Bank,
Miles City.
O ther officers nam ed include H. F.
Lee and Jo h n F inn, vice presidents;
W. H. W illiam s, cashier; G. A. A nder­
son, a ssistan t cashier, and th e follow­
ing directors: M essrs. Jones, Lee and
W illiam s and F re d W. W oolsey and
P. S. Richardson.

Helena
The U nion B ank and T ru st Com­
pany, H elena, did th e larg est business
in 1939 in its history, rep o rts show ed
follow ing th e organization’s an n u al
m eeting.
D irectors w ho w ere re-elected a t th e
an n u al m eeting w ere F ra n k B ogart,
M. S. Gunn, A. T. H ibbard, E. D. MacHaffie, E. J. M urphy, J. G. R eitsch,
H. C. Schuyler and R. P. P o rter. T he
directors th e n re-elected th e follow ing
officers:
A. T. H ibbard, president; J. G.
Reitsch, vice p resid en t and cashier;
F ra n k Bogart, vice president, tru s t
officer and secretary; C. E. McGuinness, a ssistan t cashier and a ssistan t
secretary; Ben R. D raper, a ssistan t
cashier; Jo h n Carlson, Jr., a ssistan t
cashier; R ichard C. H inze, assista n t
tru s t officer and a ssistan t secretary,
and L ynn L. L eggett, auditor.

Clearing House
A t th e an n u al m eeting of th e Great
F a lls

C learing

H ou se

A ssociation,

rep resen tin g all th re e banks in G reat
Falls, D. J. D undas, vice p resid en t of
th e G reat F alls N ational w as elected
president. He w ill be th e successor
of L. F. Curry, w ho served th ro u g h
1939.

61
T hiele nam ed to succeed Mr. S tanbro
as cashier.

IO W A

The election of a new director, th e
re-election of all o th er officers m arked
the an n u al m eeting of stockholders
and directors of th e S ecurity State
Bank.

N EW S

C. R. GOSSETT
President
Sioux City

Dr. W illiam R ankin w as nam ed to
th e board of directors succeeding W il­
liam P. S utton w ho retired.
George E. Sm ith continues in his
office as president; R. J. M cCleary as
vice president; and H. F. M artin as
a ssistan t cashier.

FRANK W A RNER
Secretary
Des Moines

One prom otion w as announced along
w ith a re p o rt th a t all directors and
officers w ere re-elected for 1940 fol­
low ing th e an n u al m eeting of stock­
holders and directors of th e K eokuk
N ational Bank.
,

Group One to Meet in Sioux City
on February 12
E P A R T IN G from its u su al custom of holding its G roup M eeting in the
spring, G roup One of th e Iow a B an k ers A ssociation w ill hold its 1940 m eet­
ing in Sioux City on M onday, F e b ru a ry 12th. H ead q u arters w ill be a t the
M artin Hotel.
T he program , as outlined, provides for a m eeting of ju n io r officers and em ­
ployes in a m o rn in g session. T he larg er m eeting w ill s ta rt w ith a luncheon,
w ith several speakers. A m ong th ese w ill be th ree farm ers from th a t section of
th e state w ho w ill discuss th e ir view s on b an king service.
O ther sp eak ers w ill be G. H. A yres of Sibley, and H a rry Schaller, president
of th e C itizens F irs t N ational Bank, of Storm Lake. T here w ill be one other
sp eak er w hose nam e has n o t been an nounced as th is goes to press.
E n te rta in m e n t in th e evening w ill be a d in n er and floor show, followed by
a dance. T he p ro g ram an d o th er G roup M eeting details are being arran g ed by
E. E. M anuel, p re sid e n t of th e George S tate Bank, and A. J. B ertelsen, cashier
of th e M orningside Savings Bank, of Sioux City.

D

Keokuk
In th e a n n u a l m eeting of th e stock­
holders and d irecto rs of th e K eokuk
Savings B ank and T ru s t Co., th e
resig n atio n of O. S. S tanbro, cashier,

w as accepted, four new directors w ere
elected and a new cashier appointed.
E d w ard K. Jo h n sto n e w as re-elected
to th e office of president; Thom as F.
Talbot, vice president; and W alter

T he prom otion affects Miss E liza­
b eth L aurinson, w ho w as appointed to
th e office of a ssistan t cashier.

Cedar Falls
E dw in L. U nger, teller for ten y ears
w ith th e F irs t N ational Bank, Cedar
Falls, and its predecessor in stitu tio n s,
w as elected a ssistan t cashier of th e
bank, a t th e an n u al stockholders and
directors m eeting. All o ther directors
an d officers w ere re-elected.

Newton
W alter T. Robinson, cashier of th e
N ew ton N ational Bank, w as nam ed to
th e board of directors to fill a vacancy
created by th e death of S. S. M arshall.
All ban k officers w ere re-elected a t
th e an n u al m eeting.

What Iowa Statements Show
DECEMBER 30, 1939
The N orthw estern B anker is pleased to publish B a n k Statem ents received before going
to press— p u t us on your m ailing list and send us your statem ents im m ediately after
each call. I f your bank is not included in th e list below it is because YO U did not send
in your statement. Please do so next time.
TOW N
BANK
A d e l........................... D a lla s C oun ty S t a t e .................. .
A lg o n a ..................... I o w a S t a t e .......................................
A lg o n a ..................... .S ecu rity S t a t e ................................
A m e s ..........................A m es T ru st and S a v i n g s . . . . ,
A m e s ..........................C ollege S a v i n g s ........................... .
A m e s ......................... U n io n S to ry T ru st & S a v in g s
A n a m o s a ................. C itizen s S a v in g s ............................
A r lin g to n ................ A m erican N a t i o n a l .....................
A t la n t ic ....................A tla n tic S t a t e ................................
A u r e lia ..................... T h e F ir st T ru st & S a v i n g s .. .
B a x t e r .......................S ta te S a v i n g s ................................
B e a m a n .................... F arm ers S a v i n g s .........................
B o o n e ........................ B o o n e S ta te B an k & T r u s t ..
B o o n e ....................... .The C itiz en s N a tio n a l................
B r e d a .........................Breda S a v in g s ................................
B u r lin g to n ..............B u r lin g to n S a v in g s .....................
B u r lin g to n ..............F a r m ers & M erch a n ts S a v in g s
B u r lin g to n ..............N a tio n a l B an k o f B u r lin g to n .
C a r lis le .....................H a r tfo rd -C a rlisle S a v in g s .. . .

C A S H IE R
0 . D. E llsw o rth . . . . .$
H. L. G ilm o re. . .
E. A. S c h c me l . . . .
C lay W . S ta ffo r d . .
T. E. L a V e lle .........
F . H . S c h le ite r . . . . .
L. I). Mu r f i e l d . . . .
H . R. Y o u n g .........
W . R. R e m i e n . . . .
H . H. D e y lo ff.........
G eorge R . G e is e . . .
W . E . W h o r r a ll. .
R. J. M e y ers............
E . E . W ie m e r .........
F. V an E r d e w y k ..
W . H . S w ile r ......... . .
H . E . S im o n ......... .. . .
T h om as L. D y e r .. . .
G. D. S c h o o l e r . . . .

C a p ita l
25,000
50,000
50,000
75,000
50,000
100,000
60.000
25,000
50,000
25,000
25,000
150,000
100,000
50,000
100.000
125,000
200,000
25,000

S u rp lu s and
P ro fits
$
24,036
77,854
13,300
87,608
81,177
36,251
10,436
32,504
105,359
36,016
15,149
32,520
54,016
61,255
19,110
177,370
77,123
73,961
32,877

(T u rn to page 64, please)

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

L o a n s and
D isco u n ts
$
281,407
516,960
336,628
735,520
492,659
629,422
1,129,281*
283,593
634,283
437,311
404,045
228,216
1,899,327
896,701
340,975
1,537,503
456,722
1,104,859
421,658

B on d s and
S ecu rities
$
61,622
145,119
31,370
647,438
594,955
359,010
44,100
630,682
109,148**
152,940
45,100
224,572
449,496
37,500
1.019,566
1,301,931
1,311,884
42,679

C ash and D ue
From B an k s
$
404,105
817,372
193,368
277,120
405,533
393,747
273,664
111,719
490,587
131,036
74,031
591,902
743,101
155,313
1,300,881
739,844
845,835
78,251

D ep o sits
$
695,163
1,669,646
516,673
1,477,312
1,382,301
1,261,280
1,357,088
385,455
1,617,692
490,245
641,210
292,955
2,514,959
1,959,293
469.396
3,605,136
2,367,018
3,043,192
488,480

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

WEALTH
A griculture is recognized as Io w as greatest industry,
b u t few people stop to consider it in the light of its pro­
portion to other great industries.
It is difficult, for instance, to visualize the annual
agricultural income of the state as greater th an the an­
nual gold production of the entire western hem isphere
and alm ost half as great as the gold production of the
entire world.
Also, it is difficult to visualize the fact th a t the 967,979
people on Iowa farm s— approxim ately 40% of the resi­
dents of th e s ta te —would populate a city which would
be sixth in size in the U nited States.
There are in Iowa, 221,986 farm s—each an individual
business. In the entire U nited States, there are only two
business classifications — food stores, and eating and
drinking places— in which there are more individual
operators.
Iowa agriculture is a half billion dollar a year industry.
1939 agricultural income is listed a t $659,359,000. B ut
different th an m any agricultural states in which income
follows crop season, Iowa farm ers enjoy a year round
income. Average figures show th a t in no one m onth do
Iowa farm ers receive less th an 7 per cent of their total
y ear’s income, and in no m onth do they receive more
th an 10 per cent.
M ore th an “ju st farm ing,” Iowa’s agriculture is a
great industry. B roken up as it is in small units, Iowa
bankers have had the opportunity of serving it well in
helping to increase production through the financing of
farm m achinery, livestock, produce and grain.

B ankers T ru st C om pany is happy to have been able
to serve Iowa agriculture in m any ways directly—and
indirectly as Des M oines correspondent for a large
num ber of banks over the state.
T o p : S uch fa rm ste a d s as th ese ra n k Iow a first am ong all sta te s in
v a lu e of fa rm lan d a n d buildings. • C e n te r a n d Lower L e ft: Iow a,
first in v a lu e of fa rm m achinery, has ta k e n m echanized farm ing to
its h e a rt. H e re are m o d ern tra c to rs in use in soil p re p ara tio n , c u lti­
v a tin g a n d h a rv estin g of Io w a’s prem ier crop— corn.
•
L ow er
R ig h t: O nly a b o u t one fifth of Iow a's crops reach m a rk e t in form of
grain. T h is feedlot scene p ictu res how a big sh a re of it is co n v erted
for m ark e t.

BANKERS TRUST
COMPANY

6th and Locust Streets
D es M o i n e s , I o w a

M e m b e r F e d e r a l D e p o s i t In surance C o rp o ra tio n


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

M e m b e r F e d e r a l D eserve S y s t e m

64

W H A T IO W A STATEMENTS S H O W
(C ontinued from page 61)
S u r p lu s and
L o a n s and
B on d s and
C ash an d D ue
TOW N
BANK
C A S H IE R
C ap ita l
P r o fits
D isco u n ts
S ecu rities
From B a n k s
C edar F a l ls .............C edar F a lls T r u s t ........................................ H . C. S m it h ................
50.000
C edar R a p id s ........ G u aran ty B an k & T r u s t .......................... R eg in a ld B . F ig g e . ,
200,000
Cedar R a p id s .........M erch an ts N a tio n a l....................................M ark J, M y e r s ....' .
500.000
C edar R a p id s ------ T h e P e o p les S a v in g s .................................W m . R in d erk n ech t
250.000
17,337
2,614,445
883,337
1,749,395
C e n te r v ille ...............F ir s t N a t io n a l............................................. R oy E. O u g h t o n ...
50.000
58,023
174,369
794,513
468,141
C h a r ito n ................... F ir s t S ta te B a n k .......................................... L ester F . S m it h ! ! ! .
50.000
19,454
276,392
231,225
312,955
C h a r ito n ................... N a tio n a l B an k & T ru st C o ...................... E. L. G o o k in ____ . . ’ ’
100 000
48,547
337,950
832,187
318,140
C harles C ity ........... f i r s t S e c u r i t y .............................................. M ertem J. K la u s ____
100,000
59,044
883,430
115,709
846,271
59,000
C la r in d a ................... P a g e C oun ty S t a t e ....................................C. E . B r a d le y ...........
47,965
515,623
134,850
442,317
C lin to n ..................... C ity N a t i o n a l ................................................j .
400,000
H . N is s e n ..............
328,517
2,212,911
1,837,066
1,939,154
C lin to n ..................... C lin to n N a t i o n a l ........................... ............. L. J . D e r flin g e r ..........
60,000
85,278
293,259
503,452
695,929
C o lf a x ....................... F ir s t N a tio n a l................................................H . E
B ell .....................
25,000
50,317
398,488
175,424
190.996
Coon R a p id s .........F ir s t S t a t e ........................................................P a u l H . K in n ic k .
25,000
13,143
227,924
101,575
141,785
Coon R a p id s .........I o w a S a v in g s ...................................................W a lter B u en n ek e !!
25,000
14,320
151,713
73,241
150,764
150,000
C oun cil B lu ffs ----- C ouncil B lu ffs S a v in g s ................................ E. H . S p e tm a n ...........
198,368
2,341,684
986,341
1,363,453
C oun cil B lu ffs ___ S ta te S a v i n g s .................................................. H . L. T in le y ...............
100,000
88,185
1,270,685
259,819
588,064
C ra w fo rd sv ille . . . P e o p le s S a v in g s ........................................... K. A . C oa tes.
20,000
25,038
215,803
36,400
144,447
C r o m w e ll................. C rom w ell S ta te S a v in g s ........................... A . O m ar C a n n o n . . . .
15,000
14,460
147,893
33,900
33,059
D a v e n p o r t............... D aven p ort B an k & T r u s t........................ H erm an S taak
600,000
1,365,340
7,506,373
15,731,309
9,674,437
D a v e n p o r t............... F ir s t T ru st & S a v in g s ...................................F . A . J o h n s o n ...........
135,000
56,956
1,220,831
614,279
1,111,870
D e n is o n .................... F ir s t N a t io n a l.................................................. H . C. L in d u sk i..........
100,000
50,996
530,609
271,510
333,571
D es M o in e s............B a n k ers T ru st Co.............................................F . C. A tk in s ............... 1,000,000
804,729
7,409,704
8,370,000
5,895,868
D es M o in e s............C ap ital C ity S t a t e ........................................R aym on g C. M iller. .
150,000
105,149
1,093,456
1,381,606
681,522
D es M o in e s.............C entral N a t i o n a l ......................................... J. R . C a p p s................. 1,000,000
732,565
8,497,745
5,845,519
9,470,713
D es M o in e s............Jow a-D es M oines N a t ’l& T r u s t ............. H a r ry G. W ils o n ____ 3,000,000
977,205
13,381,281
12,897,157
17,801,694
D es M o in e s............. T he V a lle y S a v in g s ........................................J . R. A s t le y ...............
200,000
306,133
3,521,971
603,472
1,499,069
D u b u q u e...................A m erican T ru st & S a v in g s ......................A lb ert C. L a n tz k y . .
250.000
128,675
1,057,635
3,245,752
1,239,330
D u b u q u e...................F ir s t N a tio n a l................................................ J osep h V . K ep p ler.
300.000
412,901
1,589,306
6,816,063
2,365,202
D u n la p ..................... .D u n lap S a v i n g s ............................................G len H. M illa r d ____
25,000
25,512
183,428
131,064
118,334
D u r a n t.......................L ib erty T ru st & S a v in g s ...........................R . D . R y a n ..................
100,000
112,393
808,855
72,390
249,053
E ld o r a ....................... H ard in C oun ty N a t io n a l......................... E a stm a n W . N u c k o lls
75,000
56,983
334,601
503,210
480,138
E m m e tsb u r g .......... C en tral S a v in g s B an k & T r u s t ............. J. W . E d g e ..................
60,000
93,552
605,043
317,887
247,264
E m m e tsb u r g .......... Io w a T ru st & S a v in g s ............................. C has. J . S p i e s . . . . .
25.000
130,263
586,024
199,768
392,790
E s th e r v ille .............. Io w a T ru st & S a v in g s ............................... D onald T. L a w le r ..
25.000
37,253
411,990
144,370
248,628
F o rt D o d g e .............T h e S t a t e ........................................................ H arry T.
H u ff.........
100,000
146,863
1,029,134
747,557
1,096,594
F ort M a d iso n ...........F ort M adison S a v in g s .............................H . H . M oh rfeld .
205.000
53,930
708,636
1,667,423
1,013,863
F o rt M a d iso n ........ Io w a S t a t e ...................................................... M ilton E. L e h n in g ..
100.000
31,369
224,863
255,355
254,544
G a r n e r......................... H an cock C ou n ty N a tio n a l....................H . L. O lle n b u r g ...
50.000
20,541
325,230
132,540
362,678
G a r w in .......................F arm ers S a v in g s ........................................A . F . A g e n a .................
20.000
25,168
115,863
118,635
128,677
G lid d en .....................F ir s t N a t io n a l................................................H . W . P o r t e r ..............
50.000
17,654
237,865
56,950
340,862
G ladb rook ................ S ta te B a n k ....................................................! J. S. B a u c h . . . .
50.000
41,450
691,056
20,050
140,149
G r in n e ll.......................G rin n ell S t a t e .............................................L. M. L a n n in g . . .. ! . '
60.000
31,557
489,028
130,000
439,894
G rundy C en ter. . . F a r m ers S a v i n g s ...................................... A . V . D iek en . . . . .'.' !
20,000
16,927
230,676
58,436
130,465
Grundy C en ter. . . G rundy N a t i o n a l ........................................W esle y T. H eck t!
50.000
26,451
319,331
135,128
228,150
G u th rie C e n t e r .. . G u th rie C oun ty S t a t e ............................. H . B. G i l l e s p i e . . . ! !
30.000
45,043
273,430
191,362
500,742
H a r tle y ..................... S ecu rity S t a t e ................................................ A . F . H a n s e n . ! . ! . !
37,500
33,630
234,524
178,453
130,376
H a w a r d e n ................ F ir s t N a t io n a l............................................... H . V isse r
50.000
32,208
258,477
59,147
92,405
In d e p e n d e n c e ......... F arm ers S ta te S a v in g s ............................. C. L. F ie s t e r ...............
100,000
66,842
546,311
1,185,370
544,388
I n d ia n o la .................. P eo p les T ru st & S a v in g s ..
. M. F. H e n d e r so n . . . .
100,000
78,698
674,995
675,386
405,094
Io w a C ity .................Io w a S ta te B an k & T r u s t...........................M. B. G u th r ie ............
100,000
100,143
1,544,779
301,895
883,707
Io w a F a l ls ..............C itiz en s S t a t e ............................................... E .
H . K lisa rt
35.000
40,017
505,592
303,622
257,602
J e ffe r so n .................. Jefferson S t a t e ............................................. V ern e W . M iller.
50.000
95,342
783,759
160,000
797,993
K e llo g g ..................... K e llo g g S a v in g s .......................................... J .
D . R o t h .........!
50.000
57,059
415,010
131,723
212,291
K n o x v ille ..................C om m un ity N a tio n a l..................................J. R . D y e r .............
50.000
54,248
703,295
161,941
525,840
L a n s in g .................... K ern dt B ros. S a v in g s ............................... C.
M. K e r n d t ...
30.000
42,452
302,329
209,395
202,979
E . T o o l............
Le M a r s.................... F irst N a tio n a l............................................... R .
60,200
18,422
136,781
438,130
232,804
L e o n ............................D eca tu r C ou n ty S t a t e ............................ .. W m . Z u n kei ___
30.000
46,261
308,059
216,624
295,736
L is b o n ....................... L isbon B an k & T r u s t............................G. L. H i ll................
50.000
41,989
387,579
206,998
168,456
L y tto n ....................... L y tto n S a v in g s ............................................. Theo. J. Tokheim
15.000
25,907
297,687
40,802
124,486
M a n so n ..................... M an son S t a t e ............................................... G. L. S c o le s ...........
25.000
29,265
372,974
111,514
195,919
M a q u o k e ta .............. Ja ck so n S ta te S a v in g s ............................. Joh n J a rg o
75.000
76.600
1,256,359
34,460
818,895
M a r sh a llto w n ....... F id e lity S a v in g s ...........................................A . T. D a v is ...................
100,000
165,518
1,064,715
1,225,522
2,098,961
M a r te lle ...................F a rm ers S a v in g s B a n k ............................. Guy C. M a r tin ............
25,000
18,318
110,459
159,535
26,053
M a so n C ity ............ F ir s t N a t io n a l...............................................W illia m W . B o y d . . .
450,000
232,914
2,506,689
2,516,211
2,551,472
M a so n C ity ............ U n ite d H om e B an k & T r u s t..................R. A . P o t t e r .................
100,000
58,535
1,399,654
79,712
420,709
M isso u ri V a l l e y .. F ir st N a tio n a l............................................. H . F . F o s s .....................
50,000
35,162
199,639
394,145
180,396
M o n tic e llo ...............M o n tic ello S t a t e ........................................... H . M. C a rp en ter, J r.
400.000
98,517
3,199.159
845,131
652,142
M o n o n a ....................U n io n S t a t e ....................................................K en n eth W . R a s h . . .
52,500
30,500
99,370
116,618
275,430
M o u n t V e r n o n . . . M ount V ern on B a n k .............................. .. D . U . V a n M etre. . . .
50.000
59,798
524,428
211,331
106,450
M u s c a tin e ............... C en tral S t a t e ................................................ ! d e n D o w n i n g .............
125.000
52,015
744,604
1,018,744
878,096
N e w e ll...................... F ir st N a tio n a l............................................... L. A . E r ic k so n ............
25.000
34,862
301,039
78,339
95,760
N e w t o n .................... J a sp e r C ou n ty S a v in g s ............................ A . E. H in d o r ff...........
1 0 0 .0 0 0
164,646
2,388,994
442,189
764,748
N ew to n ......................N ew to n N a tio n a l........................................ W a lte r T. R o b in so n .
1 0 0 ,0 0 0
62,340
534,551
487,358
466,425
O a k la n d ................... O ak lan d S a v in g s .........................................M. H . E v a n s ................
35.000
35,000
360,642
115,650
188,740
O a k la n d ................... C itizen s S t a t e ................................................D . F . B u s s e ...................
40.000
28,546
396,745
106,078
209,493
O e lw e in .................... F ir s t N a tio n a l......... .......................................M. C. H a n s o n ...........
50.000
100,348
320,661
575,171
434,169
O n s l o w . . . . ............ O n slow S a v in g s ...........................................Geo. H . P a u l s e n . . . .
20.000
34,847
266,025
111,100
156,253
O ra n g e C ity ........... N o rth w e ster n S t a t e ....................................H . C. M o r e t...................
65.000
49,701
738,005
15,000
336,768
O s a g e ........................ O sage F a r m ers N a tio n a l.........................E . A . H e id e n ................
100,000
86,510
699,234
280,570
321,348
O s c e o la ..................... C lark e C ou n ty S t a t e ..................................R . K. M cG ee................
25.000
39,984
333,666
242,378
236,345
O ttu m w a ..................U n io n B a n k & T ru st Co.......................... M ax V on S c h r a d e r ..
300,000
233,617
1,956,636
2,071,804
2,138,942
P e r r y ......................... F ir s t N a t io n a l................................................E . R . B u r k e t t ..............
50.000
99,934
589,587
57,886
704,908
R a n d o lp h .................R an d olp h S t a t e .............................................J. S. Z d u ch n e c............
25.000
14,146
138,003
66,263
68,444
Red O a k ..................T he M o n tg o m ery C ity N a tio n a l........... Ivan E rick so n ...........
50.000
33,624
439,936
77,080
526,241
R ock V a lle y ...........V alley S t a t e ................................................... J . P . S c h u t t ...................
35.000
38,078
480,123
119,011
208,699
S h e ld o n .................. S ecu rity S t a t e ................................................ .R . A . S c h n e id e r ____
50.000
33,459
388,162
152,781
349,536
S io u x C ity ..............F ir st N a t io n a l............................................... F r itz F r itzo n ............
400,000
215,636
2,215,636
1,259,300
3,742,221
S io u x C ity ..............L iv e S tock N a tio n a l..................................M. A . W ils o n ................................... 250,000 263,047
2,566,543
949,347
3,477,370
S io u x C ity ..............S ecu rity N a t io n a l........................................ R . E a rl B r o w n ...........
250.000
243,312
1,786,475
664,178
3,944,996
S io u x C ity ..............T oy N a tio n a l..................................................E . E . E r ic k so n ...........
300.000
374,826
1,670,714
2,985,868
3,601,674
S io u x C ity ..............W oodbury C ou n ty S a v in g s ....................C. T. M c C lin to ck . . .
1 0 0 .0 0 0
90,143
1,633,443
592,882
591,879
S p e n c e r .....................C lay C ou n ty N a t io n a l............................. .A . E . A n d e r so n ____
85.000
94,531
958,189
283,889
834,877
S torm L a k e ............C itiz en s F ir s t N a tio n a l............................. W a y n e A . M y e rs. . .
75.000
194,359
1,033,828
184,740
1,042,066
S torm L a k e ........... C om m ercial T ru st & S a v in g s ............... E . J . K n e b e l..............
50.000
40,492
279,621
235,500
203,622
S tr a tfo r d ................. F a r m ers S a v in g s ........................................ E . J . J o h n s o n ...........
20.000
11,694
185,614
66,600
66,783
S t u a r t ........................F ir s t N a tio n a l........................... .................... C. L . B e e c h ...............
65,812***
151,323
157,409
134,134
V in t o n ...................... S ta te B an k o f ................................................C harles B. B a r r o n .
65.000
87,005
727,735
361,230
507,600
W a ll L a k e ..............W a ll L ak e S a v in g s ....................................C. W . S h a w ................
30.000
58,393
360,239
76,512
264,533
W a s h in g to n ......... .N a tio n a l B a n k o f ....................................... E. F . M iic k ...............
80.000
41,520
375,134
546,473
434,266
W a s h in g to n ......... .W a s h in g to n S t a t e ....................................... F r a n k L . K o s ...........
50.000
108,721
543,705
275,321
814,336
W a p e llo .................... S ta te B an k o f ................................................H . B . H a m m e r ...........
25.000
10,922
269,849
39,952
182,062
W a te r lo o ..................N a tio n a l B a n k o f ......................................... R . L. P e n n e ............
239,800
267,217
2,128,590
2,665,720
2,614,716
W a te r lo o ..................W a terlo o S a v in g s ........................................ J . J . M ille r ..................
175,000
187,021
2,601,410
1,219,571
2,790,382
W a y la n d ...................W a y la n d S t a t e ............................................. M elvin C. R o t h . . . .
25.000
29,305
241,843
131,577
139,806
W h a t C h e e r ........... F ir st S ta te B a n k ..........................................H a r ry W . E n g e r . . .
25.000
15,439
179,677
64,185
230,163
*** In c lu d es S u rp lu s and P r o fits.
* In clu d es B on d s and S ecu rities.
** Inclu d es C ash and D u e from B a n k s.

N orthw estern B anker

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

F ebruary 19b0

D ep o sits
1,752,003
2,920,513
34,040,779
4,900,053
1,304,090
756,430
1,397,052
1,684,652
1,01S,367
5,516,502
1.376.242
697,335
432.798
337,707
4,406,340
1,930,970
357.798
184,593
30,390,871
2,663,297
1,005,667
19,591,962
2,978,365
22,015,617
41,667,682
5,237,433
5,169,460
10,058,465
391.550
1,024,753
1.234.369
1,030,224
1,023,422
775,224
2,727,948
3,154,773
610,867
756,814
319.137
571,921
765,787
986,395
532,494
615,171
1,055,721
498,344
415,497
2,077,205
1,604,240
2.615.242
1.002.390
1,607,623
687,152
1,240,254
658,517
762,964
748,197
675,387
428.309
629,002
1,986,672
4,183,825
251,568
7,282,048
1.771.243
697,829
4.152.369
526.550
730,370
2,449,991
421,364
3,377,700
1,374,325
644,489
652,000
1.396.491
478,532
996,078
1,193,081
747,733
5.781.390
1,221,566
241,333
1,006,204
742,298
821,155
6,720,186
6,442,350
7,160,344
7,721,139
2,608,383
1,941,539
1,975,965
644,539
290,589
391,844
1,449,738
630,464
1.230.491
1,493,733
453,555
6,897,341
6,354,904
461,373
431,832

65
- •

Council Bluffs
Only th re e changes w ere m ade a t
th e a n n u a l elections of b an k officers
an d d irecto rs in Council Bluffs.
C harles R. H a n n an I I I and D w ayne
L. E van s, fo rm er tellers, w ere elected
assista n t cashiers a t th e City N ational
B ank. A t th e S tate Savings B ank,
Clyde A. B lanchard w as elected di­
rector, succeeding F loren ce B lanchard.

Des Moines
E d w ard P. K au tzk y w as prom oted
from a ssista n t cashier to a ssista n t vice
presid en t of th e V alley Savings Bank.
The b a n k ’s board of d irecto rs also
voted tw o o th er prom otions. M arvin
L. P ayne and F ra n k M. T hom pson
w ere elected a ssista n t cashiers.
At th e Iowa-Des M oines N ational
B ank and T ru s t Co., G ardner Cowles,
Jr., associate p u b lish er of The Des
Moines Register and Tribune, p resi­
d en t of Look, Inc., and p resid en t of
th e Iow a B roadcasting Co., w as nam ed
a director.
A t th e sam e tim e H a rry G. W ilson,

I O W A

N E W S

•

bank. All officers and directors w ere
re-elected.
A t th e B ankers T rust, L. N evin Lee
w as prom oted from a ssistan t cashier
to a ssista n t vice president, and G. A.
M oeckly w as nam ed an a ssistan t cash­
ier. Mr. Lee w ill continue as m anager
of th e m ortgage loan departm ent, and
Mr. Moeckly w ill rem ain as head of
th e personal loan departm ent.
B ankers T ru st stockholders w ere
advised th a t as of F e b ru a ry 1, the
b an k w as paying $250,000 on the p re­
ferred “A” stock held by the R. F. C.

and issuing 50 p er cent com m on stock
dividend to stockholders of record as
of F e b ru a ry 1, 1940. T his w as in ad­
dition to th e u sual cash dividend.

W est Des Moines
Roy M. M esserschm idt w as re ­
elected presid en t of th e F irs t N ational
B ank of Des Moines.
H is son, A lbert L. M esserschm idt,
w as elected to th e board of directors
to fill a vacancy. T he o th er directors,
B. L. S tew art and Chelious Vandenburg, w ere re-elected.

I N S IO U X C I T Y ■• •
Sioux City is one of the outstanding grain m arkets
of the N orthw est.

I t is the home of the Sioux City

G rain Exchange, serving farm and commercial interests
of Iowa, N ebraska, South D akota and M innesota.
The F irst N ational B ank of Sioux City is well
equipped to handle your grain and hay items in this
m arket.

L et us help you on these . . . and your other

correspondent items . . . in Sioux City.

CHAS. D. M cCOY

v e te ra n officer, w as elevated from
th e position of cashier to th a t of vice
p resid en t and cashier; and C harles D.
McCoy w as prom oted from m an ag er of
th e cred it d e p a rtm e n t to a ssista n t
cashier.
W alter L. S tew art, Des M oines a t­
to rn ey , m em ber of th e law firm of
Gibson, S tew art and G arrett, w as
elected a m em ber of th e board of di­
recto rs of th e C entral N ational B ank
& T ru s t Co.
T his w as th e only change at this

O F F IC E R S
A. S. H A N F O R D
P resident
A. G. SAM
V ice P resident
J. P. H A IN E R
V ice P resident
F R IT Z F R IT Z S O N ,

J. R. G R A N IN G
A ssista n t Cashier
E. A. JO H N S O N
A ssista n t Cashier
J. T. G R A N T
A ssista n t Cashier
President & Cashier

member Federal Deposit Insurance Corporation

Northwestern Banker

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

February 1940

66

•

Sioux City
Only one change w as rep o rted fol­
low ing th e election of officers and di­
recto rs a t th e Security N ational Bank.
R. W. Lew is is th e new a ssistan t cash­
ier.
At th e W oodbury C ounty Savings
Bank, M. C. Eidsm oe, form er vice
president, w as nam ed president. He
succeeds L. R. M anley. C. T. McClin­
tock w as advanced from cashier to
vice p resid en t and cashier. Mr. Manley w as nam ed vice p resid en t and A.

I O W A

N E W S

•

L. C hesebro and A. R. M iller w ere
re-elected assistan t cashiers.
The F irs t N ational B ank added S.
F. Cusack to the directors and re­
elected W. J. Downey, R. H. Foutz,
F ritz F ritzson, J. P. H ainer, A. S.
H anford, A. G. Sam, D. W. Stew art,
C. M. Stillw ill and C. S. Van Eaton.

Waterloo
Two new directors, George E. Pike
and Lowell J. W alker, w ere elected
to th e board of the W aterloo Savings

B ank—m aking a d irectorate of 13 m en
—at the an n u al m eeting.
Pike is a m em ber of the law firm
of Pike, Sias & B utler.
W alker is assistan t m anager of the
W alker R em edy Company.
Oliver J. Schutte, w ho has been a
teller of th e b ank since 1932, w as p ro ­
m oted to a ssistan t cashier.

Newton
F red M aytag II, vice p resident of
the M aytag Company, w as elected a
vice p resident of the Jasp er C ounty
Savings Bank, Newton.
H. H. M orrison w as elected assist­
a n t cashier, filling a vacancy left by
J. B. W asson, w ho recen tly resigned
because of ill health.

Decorah
At the an n u al m eeting of the officers
and directors of the D ecorah State
B ank several changes w ere m ade in
officers.
G.
E. Soland, w ho had been presi­
dent for some years, declined a reelection on account of his age, and
C ashier E. R. H aines w as elected to
fill th e p resid en t’s office.
Dr. T. Stabo w as re-elected first vice
president and C. A. Johnson, form erly
a ssistan t cashier, w as m ade a second
vice president, and J. N. Lee w as
elected cashier.

M cGregor

M E A T PRODUCT S FROM T HE M I D W E S T
A re Sold on W o rld -W id e Markets
Meat products, originally produced on Mid­
western farms, are served in homes and
famous restaurants throughout the civilized
world.
Breakfast bacon from corn-fed
Durocs, is prepared for well appointed tables
by fastidious chefs in Paris. The choice
roasts served daily in many London clubs,
come from Midwestern baby beeves. While
hotel menus in Bombay, Panama, Manila
and New York feature steaks originating in
the feed lots of the Corn Belt.

In all this— from the time live stock is grown
until meat products reach the ultimate con­
sumer—the Banks of the Midwest are an
integral part. They provide a myriad of
financial services which speed trade along
every channel of distribution.
And the Drovers National Bank is a logical
choice as the Chicago correspondent of
Mid-western Banks whose customers ship
live stock to the Union Stock Yards.

Your Inquiry is Invited
M em b ers, F ederal D e p o sit Insurance C orporation

DROVERS NATIONAL SANN
DROVERS TRUST D SAVINGS BANN
U N I O N

Northwestern Banker

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

S T O C K

Y A R D S ,

February 19'i0

C H I C A G O

J. J. Goheen, 57, G arnaville, Iowa,
form erly an exam iner in charge of
closed banks in n o rth e a ste rn Iowa,
has joined the staff of th e F irs t State
Savings B ank at McGregor.
Mr. Goheen, w ho form erly w as asso­
ciated w ith the F irs t States Savings
B ank at Law ler, has been affiliated
w ith Iow a banking in terests the last
22 years.

Spencer
L. A. W itter w as elected presid en t
of th e F arm ers T ru st and Savings
B ank of Spencer a t a m eeting of stock­
holders and directors. W itter suc­
ceeds the late H. B ruce Noll in the
b a n k ’s presidency.
R andall T u ttle w as elected by the
directors to succeed W itter as vice
presid en t of th e bank, and Otto A.
B jornstad w as elected to the board
of directors. D irectors re-elected w ere
Dr. C. C. C ollester an d D. E. Cole.

W averly
F. P. H agem ann w as nam ed p resi­
d en t of th e State B ank a t W averly a t
th e ann u al m eeting. Otto W alther, F.

67

•

I O W A

N E W S

•

W. Osincup an d H. A. F ritsc h e l w ere
added to th e b oard of directors.
Mr. H agem ann follows th e late A. J.
W ile as b an k president.

B ram w ell in terests w ho own a m ajo r­
ity of the stock of th e institution.
The new directors elected C. M.
AVood as vice president.

Avoca

W averly

F ra n k C. V iehus, a d irecto r and for
a n u m b er of y ears cashier of th e
Avoca S tate Bank, has been elected
p resid en t to succeed R udolph Stender,
w ho died last N ovem ber. O ther offi­
cers are W illiam Thies, vice president;
E dw in Doll and G eneva Foje, assista n t
cashiers.

A. T. Leslie, well know n W averly
resid en t and form erly active in m er­
cantile circles for m any years, w as
nam ed p resid en t of th e W averly Sav­
ings Bank.
Mr. Leslie, a director of the bank for
a n u m ber of years, succeeds the late
A. J. W ile as president.

O ther officers of th e ban k chosen at
th a t tim e were:
E. H. Meyer, vice president; E. G.
E ngelbrecht, cashier; W. D. Babcock,
assistan t cashier; F. V. Culbertson,
teller, and H ulda Luesenhop, teller.

In Wisconsin Bank
C. M. Am ann, form erly w ith the
Iowa State Bank, W est Bend, has re ­
cently been m ade the assistant cashier
of th e A uburndale State B ank at Auburndale, W isconsin. “Chuck,” as he
is know n to m any of the ju n io r bank-

Menlo
Miss E laine B rin to n of S tu a rt has
been chosen to tak e th e position in
th e Menlo Savings B ank at Menlo,
left v acan t by th e resig n atio n of F e m e
V arley Colbert.
Miss B rinton qualified for th is posi­
tion w hen she atten d ed college in
G rand Island, N ebraska.

Muscatine
W. E. D ow ner w as elected p resident
of th e M uscatine B ank and T ru st Com­
pany at th e a n n u al m eeting. A rth u r
Hoffm an w as nam ed vice p resid en t
of th e bank. B. L. McKee, vice p re si­
den t and cashier of th e in stitu tio n . C.
R. M usser w as elected ch airm an of the
board of directors.

Brooklyn
Only one change in th e list of direc­
to rs of th e P ow eshiek C ounty Savings
B ank w as m ade as stockholders con­
vened a t Brooklyn. A ndrew Shadel,
w ho had served on th e board for about
15 years, several y ears as president,
w as succeeded by H arley H. Burch.
O ther directors, all re-elected, in ­
clude T. F. B uchenau, Otis Wood, C.
W. Fow ler, L. E. D unton, C. C. Ecklund and H. R. Light.

Sheffield
W. K. B ram w ell, p resid en t of th e
F irs t N ational B ank a t H am pton, was
elected p resid en t of th e Sheffield Sav­
ings B ank at a m eeting of th e board
of directors. Mr. B ram w ell succeeds
Dr. F. H. R odem eyer, w ho has been
p resid en t of th e bank since it w as o r­
ganized five y ears ago.
S tockholders reduced th e n u m b er of
directors of th e Sheffield b ank from
seven to five and elected AV. K. B ram ­
well, D. D. B ram w ell and R. R. S tuart,
of H am pton; J. L. S traw of H ansell,
and C. M. W ood of Sheffield. Dr. Rode­
m eyer, S. O. In g eb retso n and H. O.
W ebb w ere all dropped from th e board
as control w as tak en over by th e

FOR NORTHEASTERN IOWA BANKERS ★
iñ

BC
<

THE NATIONAL BANK
OF WATERLOO

o
a

<

STATEMENT OF CONDITION
as at the close of business D ecem ber 30, 1939
RESOURCES
Cash and Due from Banks----------------------------------- $2,614,716.66
Loans and Discounts________________ __________ 2,128,590.95
United States Government Securities------------------863,217.40
State, County and M unicipal Securities---------------- 1,580,956.66
Other B o n d s __________________________________
221,547.82
Stock in Federal Reserve B ank-------------------------8,700.00
Overdrafts -----------------------------------------------------748.37
F urniture and Fixtures-------------------------------------4,113.38
Accrued Interest Receivable-----------------------------29,458.58
$7,452,049.82
LIA BILITIES
C a p ita l_______________________________________ $ 239,800.00
Common Stock ________________ $200,000.00
P referred Stock__________________ 39.800.00
Surplus and Undivided Profits--------------------------267,217.38
Reserve for Taxes, Interest, etc---------36,600.60
Interest Collected But Not E a rn e d --------------------11,090.12
D e p o sits______________________________________ 6,897,341.72
$7,452,049.82
M em ber Federal Reserve System
M em ber Federal Deposit Insurance Corporation

OFFICERS
James M. Graham ..President
Chas. S. McKinstry....V. Pres.
R. L. Penne...... ...........Cashier

H. F. Hoffer..... Asst. Cashier
R. L. Kilgore..... Asst. Cashier
A. J. Burk......... Asst. Cashier

Northwestern Banker

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

February 1940

68

AT THE IOWA MID-WINTER CONFERENCE
T he Io w a B a n k e rs A sso c ia tio n h eld its first a n n u a l M idW in te r C onference in D es M oines la s t m o nth, w ith an a tt e n d ­
ance o f m ore th a n 400. P ic tu re d on th e o p p o site p ag e a re a
n u m b e r of those w ho w ere a t th e m ee tin g . R e a d in g fro m le f t
to rig h t, th e y a re : 1. Governor Wilson, of Io w a ; Van Vechten
Shaffer, p re sid e n t, G u a ra n ty B a n k & T ru s t C om pany, C ed ar
R a p id s ; a n d D. W. Bates, Io w a b a n k in g su p e rin te n d e n t. 2. Clark
Bardole, a s s is ta n t c a sh ie r F i r s t N a tio n a l, R ip p e y ; Arthur Donhowe, vice p re sid e n t, C e n tra l N a tio n a l, D es M oines, w ho p re ­
sided a t th e C o n fe ren c e; a n d Claus Loof, p re sid e n t, P eoples
T ru s t a n d S a v in g s B a n k , G ra n d J u n c tio n . 3. A lu n ch eo n m e e t­
in g o f th e A s so c ia tio n le g is la tiv e c o m m itte e, w ith Frank Kauff­
man p re sid in g . 4. C. R. Gossett, p re sid e n t, S e c u rity N a tio n a l
B a n k , Sioux C ity , a n d p re s id e n t o f th e Io w a B a n k e rs A sso c ia ­
tio n ; Ira Wright, t r u s t officer, C e n tra l N a tio n a l, D es M oines;
a n d F. S. Lockwood, s e c re ta ry a n d t r u s t officer, B a n k e rs T ru st,
D es M oines. 5. Frank Warner, A sso c ia tio n s e c re ta ry ; W. G. C.
Bagley, tre a s u re r of Io w a ; a n d Frank Kauffman, p re sid e n t,
B a n k e rs T ru st, D es M oines. 6. Charles McKinstry, p re sid e n t,

ers in Iow a th ro u g h his activities in
th e A. I. B., is now located up in th e
h e a rt of n o rth e rn W isconsin’s vacationland. The b an k Chuck is now con­
nected w ith has about a half m illion
dollars on deposit, is th irty y ears old,
and has alw ays paid its depositors one
h u n d re d cents on th e dollar.

Des Moines A . I. B.
T he A m erican In stitu te of B anking
classes have resum ed a fte r th e C h rist­
m as holiday interval.

The N a tio n a l B a n k , W a te rlo o ; Will Lane, p re sid e n t, S e c u rity
S a v in g s B a n k , M a rsh a llto w n ; a n d Edwin Van Horne, e x e c u tiv e
v ice p re sid e n t, A m e ric an N a tio n a l, C hicago. 7. Harold P. Klein,
a s s is ta n t v ice p re s id e n t, Iow a-D es M oines N a tio n a l, D es M o in es;
a n d Fritz Fritzson, v ice p re s id e n t a n d c ash ie r, F i r s t N a tio n a l
B a n k , S ioux C ity. 8. W. R. Warner, a s s is ta n t c ash ie r, U n io n
N a tio n a l, K a n sa s C ity ; a n d Jack Maloney, a s s is ta n t c ash ie r,
F i r s t N a tio n a l, M in n eap o lis. 9. C. H. Stephenson, v ice p re s id e n t,
B a n k e rs T ru st, D es M oin es; Julian Frost, vice p re s id e n t, C lark e
C o u n ty S ta te , O sceola; William Zunkel, cash ie r, D e c a tu r C o u n ty
S ta te , L eo n ; Fred C. Cummings, D ro v e rs N a tio n a l, C hicago;
Ward Macfadden, C ed ar R a p id s, a n d Bob Kube, D es M oines,
b o th of S c a rb o ro u g h & C om pany, C hicago. 10. G. N. Barclay,
p re sid e n t, W a s h in g to n S ta te B a n k , W a s h in g to n ; a n d Frank C.
Crone, vice p re sid e n t, N a tio n a l B a n k of W a sh in g to n . 11. Clyde
H. Doolittle, t r u s t officer, Iow a-D es M oines N a tio n a l, D es
M oin es; Frank Warden, vice p re sid e n t, C e n tra l N a tio n a l, D es
M oin es; a n d H. N. Rye, v ice p re s id e n t a n d cash ie r, F o re s t
C ity N a tio n a l B a n k .

On Ja n u a ry 15th th e w om en’s divi­
sion of the A m erican In stitu te of
B anking had th e book “K itty Foyle,”
by C hristopher M orley, review ed by
Mrs. Zella W allace.
The A m erican In stitu te of B anking
m en ’s bow ling league had scheduled
a roll off for Ja n u a ry 18th. Prizes
w ere given to th e w inners.

Keokuk A . I. B.
By th e tim e th is goes to press, p ro ­
gram s, in th e form of a “new sp ap er”

A le r t S e r v ic e
a n d C o m p le t e
F a c ilit ie s in D e s M o in e s
A p r o g r e s s iv e b a n k
fo r Io w a B a n k e rs
w h o w a n t th e u tm o s t
in f r ie n d ly c o o p e r a tio n .

ALLEY
S A Y IN G S B A N K
M em b er F ed era l D e p o sit Insurance C orporation

Northwestern Banker

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Federal Reserve Bank of St. Louis

February 19h0

for th e Group E leven get-together, be­
ing held in K eokuk, F e b ru a ry 21st and
22nd, w ill be in circulation. A nd one
of K eokuk’s m ost p ro m in en t b an k ers
unfolds a laten t tale n t in his role of
editor of th e “F irs t and L ast E d itio n ”
—a chuckle sheet, abounding in “p e r­
sonal touches,” and settin g fo rth in a
m erry m an n er th e goings on of th e
two-day session. The F irs t and L ast
E dition tells you w h a t to expect in
K eokuk, and w e’re expecting YOU.
W ell, I guess th a t w o rry I expressed
last m onth about Iow a n ot hav in g had
any C hristm as w eath er up to th a t tim e
w as so rt of unnecessary. K eokuk has
practically been subm erged in snow
ever since. I t ’s fun, though.
Miss E lizabeth L au rin so n w as nam ed
a ssistan t cashier of th e K eokuk N a­
tional B ank at th e ir an n u al m eeting,
Ja n u a ry 9th, an ap p o in tm en t w ell de­
served. C ongratulations!
K eokuk banking circles w elcom e
W alter Thiele, w ho has tak en up his
duties here as cashier of th e K eokuk
Savings B ank & T ru st Company, suc­
ceeding O. S. Stanbro, w ho has re tire d
on account of ill health. Mr. T hiele
comes to K eokuk from W heatland,
Iowa.
T he boys a t th e S tate C entral p u t on
an im prom ptu “im p ersonsation” re ­
cently, w hich w as fu n n ier th a n an y ­
th in g you h ear on M ajor Bow es’ p ro ­
gram . One of th e girls, th e day after
C hristm as, came to w ork w earing a
diam ond, and as th e new s got about,
she w as besieged at h e r desk by all the
girls in th e bank, oh-ing and ah-ing as
girls do. No m ore th a n had th e cloud
of fem m es cleared aw ay, th a n th e boys
ganged up to M ary’s desk w ith exag­
g erated oh-ing and ah-ing and w om an­
like ch attering, p u ttin g on a dem on­
stratio n of acting th a t we d idn’t th in k
w as in ’em.
—H elen K ollm yer, R eporter.


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Federal Reserve Bank of St. Louis

70
•

Recent Bank Changes
E. W alter N un, fo rm erly of L ytton,
Iowa, and E lm er M eyer of F airm o n t,
M innesota, have p u rchased th e con­
trollin g in te re st in th e F irs t N ational
B ank of W ilm ont, M innesota, and
have assum ed th e active m anagem ent
of th a t institu tio n .
W alter W. M eyer, form erly vice
presid en t of th e B ank of P alm er, K an­
sas, has p u rchased th e controlling
stock in th e State B ank of Law ler,

I O W A

N E W S

•

L aw ler, Iowa, and w as elected cashier
of th a t in stitu tio n a t the an n u al m eet­
ing last m onth.
J. T. N ervig, w ho has been cashier
of th e Producers Savings B ank of
G reen M ountain, Iowa, for the past
12 years, has sold his stock and resi­
dence to B ertel L eth of Columbus,
N ebraska, form erly cashier of the
E lba State B ank of Elba, N ebraska,
and Mr. L eth has been elected cashier
to succeed Mr. Nervig.

Clinton Collections
Clinton is one of Iowa's important grain cen­
ters. In the collection of grain drafts the
City National Bank of Clinton can give
you prompt and efficient service. We
welcome such items, together
with any other collections
in this area.

City National Bank
CLINTON, IOWA
M e m b e r F e d e ra l D e p o s it I n s u ra n c e C o rp o ra tio n

Our PAYC" Plan Brought In
120 New Checking Accounts
in Less than a Month
and a Half.
— S io u x C ity , Io w a , B a n k

Make Extra Profits, Get New Customers
This Easy, Economical Way
Get your share of this sm all de­
positor business. W rite today, let
us show you how. PA Y C copy­
righted but no royalty charged to
banks usin g the system . Complete
details, experiences of other bank­
ing firms sent im m ediately on re­
quest. W rite Dept. N W F

Small depositors, wage earners welcome this
new service—result, new customers, more profits.
Build Goodwill, solve “money order problem”
with PAYC (Pay As You Check) Plan. End
minimum balance and service charge problems.
Simplify account handling. No check charge
computing—uniform handling in advance. Many
leading banks now adopting plan. Inquire now.

U n ite d S ta te s C h e c k B o o k C o.
1309-15 HOWARD STREET
Northwestern Banker


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Federal Reserve Bank of St. Louis

February ld^O

•

Brief Iowa News
The Clay County N ational Bank,
Spencer, lists deposits at $1,941,500 in
th e ir y ear end statem ent, an increase
of $160,000 over a y ear ago.
M ildred Reece has
zens N ational Bank,
keeper, succeeding
w ho is leaving to be

joined th e Citi­
W ebb, as book­
H elen T rainer,
m arried.

At the an n u al m eeting of th e G illett
Grove Savings Bank, W m. W erts w as
elected vice president, succeeding
Wm. R eardon, who resigned.
The sam e officers and directors w ere
re-elected at the an n u al m eeting of
th e A lbert City Savings Bank. C. E.
K indw all, cashier, rep o rts a good year
for his bank w ith a substan tial in ­
crease in deposits.
T here are probably few banks in the
state th a t has an earn in g record equal
to the Council Bluffs Savings Bank,
“Iow a’s oldest b an k .” O rganized in
1856 w ith a capital of $50,000, th e ban k
has since retu rn ed to stockholders
m ore th a n $1,000,000 in cash dividends
and stock dividends. The p ast year
th e bank paid a 12 per cent dividend
and added $25,000 to surplus. The em ­
ployes also received a 5 per cent bonus
on th e ir salaries. D eposits are $4,406,000.

The

GET MONEY-MAKING
DETAILS TODAY

All th ree of the above sales w ere
negotiated by The C harles E. W alters
Company, b ank stock b ro k ers of
Omaha, N ebraska.

OMAHA, NEBRASKA

A nother bank w ith a good earnings
record is th e M oorhead S tate Bank.
O rganized in 1900 th e ban k has paid
28 dividends totaling 444 p er cent on
th e original capital in v estm en t of $30,000. In addition the b ank has b u ilt up
th e su rp lu s and undivided profits to
$30,544. D uring th e last four y ears
alone stockholders have received divi­
dends totaling 100 p er cent on th e ir in ­
vestm ent. In com m enting J. R. H u b ­
bard, cashier, says m uch of this is, of
course, from recoveries.
M. T. M cEvoy, president, M ondam in
Savings Bank, rep o rts a good y ear for
his bank. Stockholders received $14
p er share dividends and $3 per share
w as added to surplus.
Clyde A. B lanchard w as elected a
director of th e State Savings Bank,
Council Bluffs, succeeding F lorence
B lanchard. H. L. Tinley w as m ade
vice presid en t and cashier.

71

•
The M odale Savings B ank paid an
8 p er cen t dividend am o u n tin g to
$2,000 and added $1,000 to surplus.
A ccording to th e y e a r end sta te m e n t
of th e F irs t N ational Bank, W oodbine,
deposits increased d u rin g th e y ear
$63,500, loans and discounts are up
$107,000, and th e su rp lu s and u n d iv i­
ded profits w ere increased $14,708.
Capital is now $50,000 and S. & U. P.
a t $99,896.

I O W A

N E W S

•

m ately th e sam e from year to year in
a b ank b u t this is tru e at th e F arm ers
Savings Bank, Fostoria. T his y e a r’s
sta te m en t show s an increase of ju st
$99.94 over last year for a total of
$291,470.21.

Crawfordsville
The Peoples Savings B ank of C raw ­
fordsville, Iowa, held th e ir annual
m eeting last m onth w hen th e follow­
ing officers w ere re-elected: S. Turk-

S tatem en t of th e F irs t N ational
Bank, Logan, as of D ecem ber 30th,
lists deposits of $603,821 and cash re ­
sources of $428,422.

R eports of officers show ed earnings
for the year in excess of 40 per cent
of th e capital stock, deposits at $357,000, and cash on han d of $144,000.
D uring th e year the su rplus w as in ­
creased $10,000, m aking it equal w ith
th e capital w hich is $20,000. A divi­
dend w as paid to th e stockholders on
th e basis of $4 p er share.

I

E. E. Sapp, cashier, F a rm e rs T ru st
& Savings B ank, Buffalo Center, re ­
p o rts an exceptionally good y e a r for
his bank. A su b stan tial dividend w as
paid and th e su rp lu s and profits in ­
creased.

:'ÇV

LC/V

Specialized
Experience

F irs t S tate B ank, Tabor, began 1940
w ith its su rp lu s fund increased from
$5,000 to $12,500 a fte r tra n sfe r of u n ­
divided profits. Deposits increased
$60,000 d u rin g 1939 and loans increased
$40,000.
At th e F irs t N ational Bank, M issouri
Valley, a handsom e dividend w as paid
stockholders and su rp lu s and profits
w ere increased $6,000.

ington, president; N. J. Lease, vice
president; K. A. Coates, cashier, and
Lois H arper, a ssistan t cashier.

—

The M anning T ru st & Savings B ank
paid $6 p er sh are dividend and added
to su rp lu s a fte r m aking re g u la r de­
preciatio n charge-offs.

■

L _

llii!I H É M B I H

o r 72 y e a r s , Live Stock National Bank has been lo­
cated inside the Union Stock Yards — serving the

F

cattle raisers, the feeders, the packers and all the other

interests represented in this great central market.

R. E. Tool, cashier, F irs t N ational,
Le Mars, says business is good. His
b an k paid an o th e r 4 per cent dividend
and added to th e reserves.

If yours is an agricultural bank, you will find particular
value in all that this specialized experience means. The
“ on-the-spot” knowledge of agricultural developments. The

Max B au m g artn er succeeds Geo. M.
G raettin g er as vice p resid en t a t th e
G raettin g er State B ank. A 5 p er cent
dividends w as declared and th e u n d i­
vided profits increased.

ability to determine and interpret long-term trends. The
understanding of the common problems of all agricultural
banks.
Today nearly 500 banks find benefit in Live Stock Na­
tional’s prompt, experienced correspondent services. May

Sign in th e C entral Savings Bank,
E m m etsb u rg , “W e honor th y fa th e r
and m other, b u t not stra n g e rs ’ checks.”
D eposits

seldom

rem ain

we discuss them more fully with you?

Live Stock.

ap p ro x i­

S E LL YOUR BAN K
T he “W alters” W ay
W ithout Publicity
Qualified, carefully investigated bank
employees furnished free
T H E C H A R L E S E. W A L T E R S CO.
Omaha, Nebraska

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Federal Reserve Bank of St. Louis

National

Bank
UN ION

MEMBER

FEDERAL

STOCK

DE P OS I T

of Chicago

YARDS

I N S U R A N C E

C O R P O R A T I O N

Northwestern Banker

February 19^0

72

—

• I O W A

N E W S * -

NLRB Investigation

IN W A S H IN G T O N
(C ontinued from page 20)
L abor ap p aren tly is divided on th e
question of tariffs as it is in m ost
o th er m atters. C ondem nation of th e
A d m in istratio n pro g ram by a m in o rity
group in th e A m erican F ed eratio n of
L abor b ro u g h t a h u rrie d sta te m e n t
from P re sid e n t W illiam G reen p o in t­
ing out th a t th e group does not speak
for th e Federation.

L abor groups and em ployers alike
are w atching th e Congressional inves­
tig ation of th e N ational L abor Rela­
tions Board as th e com m ittee headed
by Rep. H ow ard W. Sm ith (D., Ya.)
h ears charges of bias and delves into
th e b o ard ’s m ethods of procedure.
The NLRB has lost m any friends and
Congress is likely to w o rk out a new
form ula in an a ttem p t to p u t em ployerem ploye relations on a basis of good

C e n t r a l H a n o v e r Ba n k

and

T ru st C om pany

NEW YORK

w ill and cooperation, if th a t is not
expecting too m uch of any m ere law.
Econom y talk is being h eard again
b u t th e session is young and elections
are n o t likely to be forgotten. A cut
of twenty-five p er cent, proposed in
P resid en t R oosevelt’s budget for farm
spending, is alm ost certain to be in ­
creased. B ut th e huge outlay planned
for national defense is likely to face
th e ax.
Senator Alva B. A dam s (D., Col.)
declared he cannot see th e necessity
for a g reat increase in defense expendi­
tures. He said th a t in enacting th e
n e u tra lity law “we did th in g s th a t
w ere alm ost h u m iliating to p rotect
ourselves ag ain st th e hazards of w ar.”
“B ut now ,” Adam added, “w e’re
told th a t we have to cut relief and
take m oney aw ay from th e farm er
to build battleships. To fight who?
—to fight nobody.”

Budget Study

Statement of Condition at Close of Business
D ecem ber 30 , 1939
ASSETS
Cash and Due from B a n k s .................................... $627,536,800.46
U. S. Government Securides....................................... 33 3 ,76 1 ,6 1 1 .8 6
25,497,004.55
State and Municipal S e c u r i t i e s .........................
Other Securities
.
25,449,494.27
Stock in Federal Reserve B a n k .........................
2,430,000.00
Loans and Bills P u r c h a s e d ....................................... 165,748,8 14.87
Real Estate Mortgages............................................
7,064,669.79
Banking H o u s e s ..................................................
15,450,009.00
Other Real E s t a t e ..................................................
1,716,862.4 0
Interest A c c r u e d ..................................................
Customers’ Liability Account of Acceptances
.

1,553,798.01
5,599,022.67

Total $1,2 11,8 08,087.88
L IA B IL ITIE S
C a p i t a l .................................... $21,000,000.00
S u r p l u s .......................................60,000,000.00
Undivided Profits
. . .
12,745,639.68
$93,745,639.68
Reserve for Taxes,
Interest Accrued, etc......................................
4 ,241,5 78.34
Dividend Payable
January 2, 1 9 4 0 ...........................................
1,050,000.00
Acceptances..............................................................
6,034,749.40
Deposits.........................................................................1,106,736,120.46
Total $1,211,808,087.88
There are pledged to secure public monies and to qualify for fiduciary powers
U. S. Government S e c u r i t i e s .......................................
M em b er F ederal D e p o sit In s u ra n c e C o rp o ra tio n

Northwestern Banker


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Federal Reserve Bank of St. Louis

February 19W

$ 5, 118, 652.94

Senate F inance Com m ittee C hair­
m an P a t H a rriso n ’s resolution for a
jo in t C ongressional com m ittee to
stu d y th e budget and proposed new
taxes is not expected to get v ery far;
n e ith e r are th e taxes. The resolution
provides th a t th e com m ittee re p o rt
to Congress sixty days a fte r its form a­
tion.
“A jo in t com m ittee couldn’t do this
job in six y ears,” rem ark ed Senator
Adams, “b u t Pm in favor of it.”
S enator R obert W agner (D., N. Y.)
is sponsoring a new bill w hich w ould
allow th e g o v ernm ent to sell low-cost
in su ran ce policies. H e said he had
been inform ed by social secu rity ex­
p erts th e policies could sell for about
one-third th e rates now charged for
sim ilar insu ran ce by p riv ate com­
panies. A sked if he expected th e bill
to pass th is y ear W agner said:
“I don’t know about th at. T his is
supposed to be a conservative y ear.”
A bill to postpone th e effective date
for th e p rohibition ag ain st interlock-

TO M A K E M O N EY
FO R Y O U —
Young man, 39 years of age, mar­
ried, has seventeen years of success­
ful experience to offer any bank
now o p e r a t i n g or contemplating
opening a personal loan department.
Past experience covers all phases of
banking, especially in small loan
field. Can furnish excellent refer­
ences. Write to 3271, Northwestern
Banker, Des Moines.

73
ing b an k d irecto rates u n til 1944 has
been intro d u ced by S enator C arter
Glass (D., Va.). A sim ilar bill w as
vetoed by P re sid e n t R oosevelt in th e
last re g u la r session.
A fter tw o m o n th s of study, th e
m o n etary sub-com m ittee of th e InterA m erican F in an cial and E conom ic Ad­
visory C om m ittee has approved estab ­
lish m en t of an inter-A m erican b an k
a t e ith e r W ash in g to n or N ew York.
E a rly creatio n of th e b an k is said to
be necessary to m eet em ergencies in
th e W estern h em isp h ere caused by th e
E u ro p ean w ar. T he b an k w ould be
capitalized by th e g o v ern m en ts of th e
tw enty-one A m erican republics a t be­
tw een $50,000,000 and $100,000,000.

Aid to Business
C hairm an Jerom e F ra n k of th e
Securities and E x change Com m ission
has again asked Congress to pass a
bill to financially aid sm all business.
“The big tro u b le is th e cost of flota­
tion—th e cost of u n d e rw rite rs,” he
said. “W e have dozens of issues fully
reg istered w ith th e SEC—all dressed
up an d no place to go; th e y could not
find a buyer. Our figures show th a t
it often costs as m uch as 20 p e r cent
of th e to tal issue to em ploy an u n d e r­
w rite r on th ese sm all issues, p a r­
ticu larly on stock issues.”
F ra n k u rg ed a system of regional
ban k s for equity financing of sm all
business. H e proposed th a t th e gov­
ern m e n t b u y p re fe rred stock in th e
ban k s w hile p riv a te capital tak e th e
common. H e approved th e M ead bill to
provide govern m en t-g u aran teed credit
b u t said he feels m ore th a n th is is
needed.
T he S enate B anking and C urrency
Com m ittee has discussed briefly th e
projected stu d y of m oney and ban k in g
au th o rized u n d e r th e W agner Reso­
lu tio n b u t at th is w ritin g no action
has been taken.
C hairm an R obert L. D oughton (D.,
N. C.) of th e H ouse W ays and M eans
Com m ittee is looking fo rw ard to th e
end of th e session b u t n o t to cam paign
for re-election. Rep. D oughton, a fte r
30 y ears in Congress, plans to re tire
to his Blue Ridge farm .
N ew s of th e ap p o in tm en t of Daniel
“D an n y ” Bell as U n d ersecretary of
th e T re a su ry w as greeted w ith en ­
th u siastic approval by his predecessor,
Jo h n W. H anes, w ho recen tly resigned
th e post.
“I couldn’t be h ap p ier th a n I am
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E . D A V E N P O R T & C O .
OM AHA

Group Eleven to M eet In Keokuk
F T E R try in g for th e p ast fifty years, m ore or less, to get th e an n u al m eet­
ing of Group E leven aw ay from B urlington, th e efforts of K eokuk ban k ers
an d th e ir friends have been crow ned w ith success, and Group E leven of th e
Iow a B ankers A ssociation w ill m eet by a dam -site on T hursday, F e b ru a ry 22d.
To state it again, th e tow n is K eokuk, w ith h ead q u arters a t th e Iowa H otel
and th e E lks Club.
T he festivities w ill s ta rt on W ednesday evening, F e b ru a ry 21st, w ith a buffet
d in n er a t th e E lks Club from 5:30 to 7:30. T here w ill th e n be an in term ission
of tw o hours, w ith o u t doubt to allow th e production of brew to catch up w ith
consum ption, and th e an n u al dance w ill s ta rt at 9:30, also a t th e E lks Club.
F ro m th is tim e on to th e follow ing m orning, th e com m ittee assum es no resp o n ­
sibility for an y th in g th a t m ig h t happen, aside from assu rin g everyone of a
royal good tim e.
The program for T hursday, F e b ru a ry 22, is as follows:
R eg istration—F rom 9:30 a. m. to 12:00 noon, a t th e E lks Club.
L uncheon at Noon, to be held in th e Y. W. C. A.
M eeting Called to O rder
. V. P. Cullen, C hairm an, Group E leven
A ddress
C. R. Gossett, P resident, Iow a B ankers A ssociation
R em arks
D. W. Bates, Iow a S u p erin ten d en t of B anking
A ddress
Sam uel G arvin, D.D., LL.D., P resident, D ubuque U niversity
R em arks
F ra n k W arner, Secretary, Iow a B ankers A ssociation
A djournm ent.

A

over th e ap p o in tm en t of ‘D anny’ Bell
as U nd ersecretary of th e T reasu ry ,”
H anes stated. “I w ish the Congress
w ould m ake th e position of U n d er­
se cretary a p erm an en t ap p o in tm en t as
lang as it is held by th e incom ing
U nd ersecretary. H is 28 y ears of serv-

ice in th e T reasu ry u n d er both Demo­
cratic and R epublican adm inistration,
his ch aracter and his ability fit him
m ost adm irably for this post.”
Bell began his career a t th e T reas­
u ry as a clerk in th e days of P resid en t
Taft.

— T h is b o o k le t
e x p la in s th e sy ste m . M ay w e se n d it
t o y o u ? U s e th e c o n v e n ie n t c o u p o n .

UX£
CHECK P R IN T E R S INC.
Lithographers and Printers
Plants at
KANSAS CITY

CHICAGO
NEW YORK

CLEVELAND
ST. PAUL

De Luxe Check Printers, Inc.
900 No. Franklin St., Chicago, 111.
□ Please send "Safety Numbering for the Accurate
Control of Checks.”
B ank_____________________ ______________________—
Address_
Signed_

Northwestern Banker

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

February 19b0

74
•

Exhibit Penguins
A bit of th e real A ntarctic w as tra n s ­
ported to S aint Paul, M innesota, for
the 1940 W in ter C arnival held in th a t
city from Ja n u a ry 26 to F e b ru a ry 4.
Two Galapagos p enguins b ro u g h t back

Hennepin
Federal Savings and Loan
Association of
Minneapolis
Financial Statement
December 31, 1939
A SSE T S
F irst M ortgage L o a n s......................$
Loans Secured by P ledge of Accounts ..................................................
Home Purchase C ontracts...............
Federal Home Loan Bank S to c k ..
Furniture and F ix tu r e s......................
M iscellaneous A s s e t s ........................
Real E state O w ned............................
Cash on Hand and in B a n k s...........

I O W A

N E W S

by A dm iral B yrd on his 1937 polar
expedition w ere a feature of the M in­
nesota F ed eral Savings and Loan As­
sociation float, and are pictu red here
w ith th e a ttractiv e queen of th a t
m arch ing unit, Miss H elen H anna. The
float displayed by th e M innesota F ed ­
eral w as a th ree m asted schooner
“afloat” in A ntarctic w aters. Miss
H an n a w as at th e w heel of the ship,
w ith a sailor in A rctic garb in a tte n d ­
ance. The penguins w andered a t will
on the fro n t of th e float w hich simu-

W here You
See Tliis

Savings

Em blem

Are SAFE

1,221.00
285,292.78
10,500.00
872.71
1,525.53
31,894.66
119.932.78

Your

Whether
From Individuals
Small Trusts
Large Corporations
each account receives equal
consideration.
3 % C urrent D ivid en d
A ssets $ 1 ,7 0 0 ,0 0 0

G A T E C ITY
Building & Loan Association

$1,414,150.23

FARGO

C urrent R ate 3 %

69 Broadway
NO. DAKOTA

M ember Federal Home Loan B an k System

Federal Home Loan Bank of Des Moines
Des M oines, Iowa
S tatem en t o f C on d ition D ecem b er 3 1 , 1 9 3 9
RESOURCES
Advances to M em bers...................................................................................................................... $17,618,540.79
Interest Receivable A ccrued............................
27,302.65
Deferred C h a r g e s ..............................................................................................................................
22,355.28
U . S. Government O bligations...................................................................................................... 1,367,000.00
Cash ......................................................................................................................................................
911,112.31
$19,946,311.03
L IA B IL IT IE S
C a p i t a l S t o c k S u b s c r i p t i o n s ............. ......................................
♦ P a r t i c i p a t i o n C o n s o l id a t e d B a n k D e b e n t u r e s .....................
D e p o s i t — O t h e r F. H . L. B a n k .........................................................
D e p o s i ts — M e m b e r s ......................................... ......................................
D e p o s i ts — M e m b e r s h i p A p p l i c a n t s ............................................
I n t e r e s t P a y a b l e A c c r u e d ...................................................................
D i v i d e n d s P a y a b l e J a n u a r y 6, 1 9 4 0 ..............................................
D e f e r r e d C r e d i t s .......................................................................................
S u rp lu s :
L e g a l R e s e r v e .......................... .........................................................
C o n t i n g e n t R e s e r v e ...........................................................................
U n d i v i d e d P r o f i t s .............................................................................

........................ $ 9,778,100.00
........................ 7,500,000.00

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

........................
........................
........................
........................
........................
$303,025.78
150,000.00
176,135.85

1,000,000.00
943,349.58
3,900.00
27,740.26
60,612.06
3,447.50

629,161.63
$19,946,311.03

♦Consolidated Federal Home Loan Bank debentures issued by the Federal Home Loan Bank
Board, and which are th e joint and several obligations of th e tw elve Federal Home Loan Banks,
are outstanding on December 31, 1939, in" th e am ount of $48,500,000.00.

Northwestern Banker

lated an ice floe. G reat in te re st w as
displayed in the birds by th e th ro n g s
w ho w atched the parade, as th ey are
the first live penguins ever seen in the
N orthw est. T hey w ere p resented by
the M innesota Federal, at th e end of
C arnival W eek, to the Como P a rk Zoo

962 910.77

$1,414,150.23
L IA B IL IT IE S
Savings and Investm ent Share Accounts ..................................................$1,267,698.94
A dvances from Federal Home
Loan Bank .........................................
None
74.397.95
M ortgage Loans in P r o c e ss...........
14,005.52
M iscellaneous L ia b ilitie s .............
R ESERV ES:
Federal Insurance ........................
14,300.90
C ontingencies ...................................
7,563.47
U ndivided Profit and M isc.
R e s e r v e s .........................................
36,183.45


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

•

February Í940

of S aint Paul, as a p erm an en t addition
to th a t institution.
The W in ter C arnival has become an
an n u al event in Saint Paul, attended
by w in ter sports en th u siasts from
th ro u g h o u t the en tire nation as well
as from abroad. T his is the th ird year
in w hich the M innesota F ederal has
particip ated actively w ith a m arching
u n it and float.

Insured Accounts
Insu ran ce of sav ers’ accounts in sav­
ings and loan associations up to $5,000
each by th e F ederal Savings and Loan
In su ran ce C orporation has had a vital
p a rt in th e rehab ilitatio n of nearly
300 associations th ro u g h o u t th e coun­
try, according to a survey m ade public
by th e F ederal Home Loan B ank
Board.
In order to be extended insurance,
284 associations w ere req u ired by the
C orporation to undergo reorganization
as an essential in m eeting stan d ard s
of eligibility d u ring the six y ears since
th e agency w as established up to the
end of the last fiscal year, the B ank
B oard reported. A ssets of these asso­
ciations p rio r to reorganization totaled
$338,636,000. Im m ediately afterw ard,
the assets dropped to $213,000,000 b ut
by th e end of June, 1939, th ey had
risen to $270,000,000.
Of th e associations reorganized, 177
u n d erw en t segregation of assets, 43
accom plished capital reorganization
th ro u g h w rite-dow n, and 64 s tre n g th ­
ened th e ir reserves by m eans of
pledges of shares.

North Central Conference
to Be Held in Chicago
Sessions on Friday and Saturday, February 9 and 10,
Will be Held in Palmer House
H E sev en th an n u al N o rth C entral
Conference of th e U nited States
Savings and L oan L eague w ill be
held in Chicago, F e b ru a ry 9 and 10, at
th e P alm er House, draw in g an a tte n d ­
ance of 500 to 600 executives of th rift
and hom e financing in stitu tio n s. T hey
will come from Illinois, Indiana, AVisconsin, M ichigan, M innesota, Iowa,
N ebraska, and N o rth and South Da­
kota.
The business p ictu re for 1940, ad­
v ertisin g program s, th e F ed eral Hom e
Loan B an k S ystem ’s fu tu re and c u r­
re n t ev en ts in th e natio n al and in te r­
natio n al sp h ere w ill be discussed.
Jo h n F. Scott, St. Paul, M innesota,
w ill preside and o th er speakers al­
read y announced include M orton Bodfish, executive vice p resid en t of th e
U nited S tates Savings and Loan
League; and F e rm o r S. Cannon, In ­
dianapolis, second vice p resid en t of
th e League.
“The regional organization of w hich
th is m eeting is th e y early convention
began in th e d epths of th e depression
as a m eans of solving problem s w hich
faced th e in stitu tio n s a t th a t tim e,”
com m ents Mr. Scott. “Today p ra c ti­
cally none of the problem s of 1933 re ­
m ain. T he challenge of a new decade
to these th r if t and hom e ow nership
in stitu tio n s m akes th em m ore con­
cerned w ith v ariatio n s on the loan
plan to su it th e custom er and m eeting
th e co m m u n ity ’s dem and for hom es
on th e fringe of th e city th a n w ith
such p ast problem s as fitting new gov­
e rn m e n t agencies into th e plan of op­
eratio n and forcing th e revival of
hom e building. L ast y e a r th e re w as a
gain of $28,000,000 in th e total assets
of associations in six of th ese states
and a n e t gain of $10,600,000 for th e
en tire district. T here are 1,514 asso­
ciations in th ese nine states and th ey
serve 1,111,500 hom e bo rro w ers and
in v esto rs.”

T

Program
F riday, F e b r u a r y 9

8:30 A. M. M eeting of C onference E x ­
ecutive C om m ittee, P ri­

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

vate D ining Room 4, T hird
Floor.
10:00 A. M. Call to Order.
“Looking a t 1940.” Jo h n
F. Scott, St. Paul, Minn.
10:30 A. M. T he B usiness P ictu re for
1940. R obert P. Vanderpoel.

S a tu rd a y , F e b ru a ry 10

9:30 A. M. Own Your Home Clubs for
B usiness D evelopm ent. F.
S. Cannon, Indianapolis,
Ind.
10:00 A. M. Y our R eserve B ank Sys­
tem. Hon. Jam es Tw ohy,
Governor, F ederal Home
Loan B ank System , AVashington, D. C.
10:30 A. M. C u rren t E vents. M orton
Bodflsh.
11:00 A. M. The R est of the Question
Box.
2:30 P. M. T he ann u al m eeting of
stockholders of The F ed­
eral Home Loan B ank of
Chicago w ill be held at
2:30 P. M. in th e Red Lac­
q uer Room at the P alm er
House.

Reserves Increase

M O R T O N B O D F IS H
E xecu tive V ice President
U nited States Savings and Loan League

11:00 A. M. Savings and Loan Today.
R obert E. Hill, Columbia,
Mo.
11:30 A. M. A dvertising Y our B usi­
ness. G erald S. Beskin,
M inneapolis, Minn.
2:00 P. M. B uilding a Savings and
Loan Business. Raym ond
P. H a r o l d , AVorcester,
Mass.
2:30 P. M. V ariations of th e “Life In ­
surance to P ro tect Your
L oans” Idea. A. D. T heo­
bald, Chicago, 111.
3:00 P. M. T he Q uestion Box.
5:00 P. M. A djournm ent.
6:30 P. M. Inform al get-together d in ­
ner.

The U nited F ederal Savings and
Loan Association, Des Moines, made
hom e loans totaling m ore th a n $500,000
in 1939, Jam es M. Camp, secretary and
m anager, announced at the ann u al
m eeting.
Mr. Camp also said th a t du rin g the
sam e period dividends totaling m ore
th a n $25,000 w ere paid to m em bers
and th a t th e association’s reserves
w ere increased $12,000.
C. M. Reed, a director of the Mill
Ow ners M utual In su ran ce Company,
w as elected to the d irectory board.
George Olmsted, K. G. E llsw orth and
Lloyd AVilliams w ere re-elected board
m em bers.
Mr. Camp w as re-elected secretary
and m anager. O ther officers re-elected
w ere Lloyd AVilliams, president; H. E.
N ew ton, S tuart, Iowa, vice president,
and George Olmsted, treasu rer.

G e t Clear Titles
More people th a n ever before are
going to get clear title to th e ir hom es
this y ear by com pleting th e ir pay­
m ents to savings, building an d loan
associations, th e U nited States Sav­
ings and Loan League predicts. P aul

76

ASSETS

OVER

$ 1 ,2 0 0 ,0 0 0 .0 0

t e d e r a l S a v in g s
AND

LOAN

A SSO CIA TIO N

OF D E S M O IN E S
216 8th Street

Since

Phone 4-5324

1878

LIBERAL EARNINGS
with
SAFETY
Statement on request

W at erloo
Building and Loan
Association
East Fifth at Lafayette

WATERLOO

IOWA

Selected Security
for Trust Funds
Savings share accounts are conven­
ient lor small or large investments.
The current rate of return is 3%.
Safety is insured up to $5000 by the
Federal Savings and Loan Insurance
Corporation. Write for prospectus.

F IR S T F E D E R A L
SAVINGS & L O A N
Association of Chicago
130 So. LaSalle Street

Northwestern Banker

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

Cen. 8100

February 19b0

E ndicott, Pom ona, California, ch air­
m an of th e L eague’s Hom e B uilding
and Hom e Owning Com m ittee, points
out th a t about 200,000 should achieve
th is final step in hom e ow nership this
year, according to th e m onthly rep ay ­
m en ts called for in loan contracts.
T h a t w ill m ean th a t d u rin g th e decade
1930-1940 about a m illion fam ilies b o r­
row ing from these in stitu tio n s have
reached the debt-free hom e ow nership
goal.
T he g reat m ajo rity of those paying
off th e final am ount of th e ir debt this
y e a r borrow ed for th e ir hom es in
1928, on th e th e n p rev alen t savings
and loan plan of an 11% to a 12 year
plan. A bout $700,000,000 w as th eir
original obligation and th is y e a r’s final
p ay m ents on th e principal w ill aggre­
gate about $81,214,000, th e com m ittee
ch airm an said. T he re st w as paid off
m onth by m o n th du rin g th e depres­
sion and th e subsequent recovery.
L ast y ear th e com parable figure w as
150.000 debts paid off w ith some $60,000,000 of final paym ents.
“Savings, building and loan associa­
tions m ade th e g reatest n u m ber of
loans in th e ir h isto ry in 1928,” said Mr.
E ndicott, “about 615,000 new b orrow ­
ers having been added th a t year.
W hile a m ajo rity of those loans w ere
w ritte n to b rin g about debt-free ow n­
ersh ip by som etim e in 1940, a con­
siderable n u m b er of th em w ere for
s h o rte r loan term s of six to seven
y ears for repaym ent. Most of these
w ere later refinanced by th e associa­
tions w hen th e depression m ade it im ­
possible for people to carry th e large
m o n th ly paym ents so sh o rt a loan
te rm required. T hese are generally
fa rth e r behind now th a n those w ho
sta rte d out on th e 11 to 12 y e a r re ­
p ay m en t basis.”
Besides th e m o n th ly repaym ents
w hich m ark the final disposition of
200.000 fam ilies’ debts, th e re w ill be
about $380,000,000 paid th is y e a r in
m o n th ly in stallm en ts on th e principal
of all o th er savings and loan bo rro w ­
e rs ’ obligations, th e com m ittee esti­
m ated.
“G radual rep ay m en ts like these
d em o n strate w h y these 200,000 fam ­
ilies in spite of th e disadvantages of
low ered incom es w ere able to keep up
th e ir original plan of having a free
and clear hom e by 1940,” Mr. E n dicott
pointed out.
H e explained th a t of th e original
615.000 borrow ers in 1928, th e associa­
tions had refinanced about 160,000 to
give th e b o rrow ers longer to pay out
an d th u s help th em w eath er th e ir
economic m isfortunes. T he rem ain d er
w ere tak en over by th e H om e O w ners’
L oan C orporation or had to be repos-

U N BR O K EN
DIV ID EN D RECORD FOR
2 0 YEARS
□

H O M E

Buildingand LoanAssociation
FORT DODGE, IOWA
M em ber Federal Hom e Loan Bank System

U. S. Government Supervision

LEGAL INVESTMENT
For
INSURANCE COMPANIES
3

%

(Current Dividend Rate)

Accounts Insured Up to $5,000

NORTHWESTERN FEDERAL
Savings & Loan Association
823 Marquette Ave.
MINNEAPOLIS, MINN.

PROTECTED
EARNINGSF i r s t class p r o p e r tie s sa fe ­
g u a rd

p re s e n t

and

fu t u r e

e a rn in g s f o r in v e s to r -m e m ­
b e rs o f th e

POLK COUNTY
FEDERAL
Savings & Loan Assn.
A ssets $ 1 ,3 5 0 ,0 0 0 .0 0

511 Seventh St.
DES MOINES
M em ber F ederal H om e Loan B ank S y s te m

77
sessed by th e associations or w ere
v o lu n ta rily deeded to th e m ortgagees
by th e b o rro w ers w h en th e y found
th e y w ere u nable to keep up w ith th e
u n d ertak in g .
Mr. E n d ico tt said th a t for th e p ast
th re e y e a rs savings, b uilding an d loan
associations have been adding m ore
new b o rro w ers a y e a r th a n th e hom es
paid out of debt d u rin g th e sam e
period. H e expects th is condition to
continue th is year.

Cash Turnover
M em bers of savings, b uilding and
loan associations in 1939 used $1,600,000,000 of th e sh are accounts th e y had
b u ilt up e ith e r to w alk th ro u g h th e
gate to o p p o rtu n ity or to cushion th e
shocks of em ergencies. T his is th e
estim ate of th e U nited States Savings
and L oan L eague on th e cash tu rn o v e r
in sh are account holdings am ong th e
7,000,000 m em bers. M orton Bodfish,
executive vice p resid en t of th e League,

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

Oldest and Largest
in Des Moines
411 6th Ave.
E L M E R E . M IL L E R
P re s, a n d Sec.

Dial 4-7119
H U B E R T E . JA M E S
A s s t. Sec.

M e m b e r F e d e ra l H o m e L o a n B a n k S y s te m

INSURED - SAFETY
Current 3% Rate
BEN FRANKLIN FEDERAL
SAVINGS AND LOAN ASS'N.
92 E. 4th St.

St. Paul, Minn.

Banking Supplies of Highest Q u a lityCourteous Service—Sensible Prices.

L. W. HOLLEY & SONS
Complete BANK and O FFIC E Equipment
100 EAST GRAND

DES MOINES, IOWA

indicates th a t th is is a norm al y e a r’s
outflow in p ro p o rtio n to th e to tal vol­
um e of in v estm en ts in th e associa­
tions.
Since th e new m oney com ing into
th e associations w as considerably
m ore th a n th a t going out in 1939 as in
th e tw o previous years, th e utilization
of th e ir savings by m em bers w ill not
decrease th e m ortgage m oney avail­
able in th e associations, Mr. Bodfish
said.
Chief o p p o rtunities for w hich funds
w ere w ith d raw n w ere th e dow n p ay­
m en ts for purchase of hom es or of
subdivision lots to s ta rt plans for hom e
building, and th e sta rtin g of new b u si­
ness en terp rises as th e signs of in ­
creasing recovery m aterialized in th e
last half of th e year. E m ergencies for
w hich savings, building and loan ac­
counts have been am ong th e m ost de­
pendable standbys for a c en tu ry in ­
cluded, of course, loss of em ploym ent,
sickness, and old-age retirem ent.

Talmage
C. E. W ood w as nam ed presid en t of
T he B ank of T alm age a t th e 56th an ­
nu al stockholders m eeting. He suc­
ceeds H erm an A rends, recently de­
ceased, w ho w as presid en t for forty
continuous years, a record unequalled
by any one in th e state. Succeeding
Mr. A rends on th e board of directors
is J. D. W ilkie.

Mason C ity
D irectors of th e Mason State B ank
held th e ir an n u al m eeting. Due to
th e sudden death of th e presid en t of
th e bank, A. B. T u rn er, some m onths
ago, it w as necessary to elect new
officers.
A. V. Powell, a pro m in en t farm er
and stockm an living n o rth of B erw yn,
w as elected president; Mrs. Rose T u rn ­
er, vice president; Joe R. T u rn er, cash­
ier; and Jo h n A. T u rn er, a ssistan t
cashier.

INSURED SAFETY
For Your Savings and Investment Funds

3%

Current Dividend Rate

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A

ss o c ia t io n

Minneapolis, Minnesota
“ T IM E

IS K IN O TO T H E T H R I F T Y ’

HOME
j
Federal Savings
AND LOAN ASSOCIATION
OF DES MOINES
— our Federally Insured up to
$ 5 ,0 0 0 savings accounts are
the solution to your invest­
m ent and trust problem s.
Current dividend 4 per cent.

Statement on request.
904 Grand Avenue
Des Moines, Iowa

Policyholders Mutual
Cas ua lt y Company
Legai Reserve— Maximum Service
H o m e O f f ic e : W e s t L i b e r t y , I o w a
B u s i n e s s O ffic e : D e s M o in e s , I o w a

•
F ull Coverage A utom obile
A ccident and H ealth
Agency Inquiries Invited

THE C L E A R IN G ­
H OUSE W A Y
(C ontinued from page 18)
not so large, w hich m akes it possible
to discuss m ore th o ro u g h ly th e indi­
vidual problem s to be solved.
T he organization and th e operation
of th ese associations is ra th e r simple,
an d th e expense of m aintenance v ery
negligible. All th a t is necessary is for
a g roup of progressive m inded b an k ­
ers, located in an area w here th e ir
problem s are m ore or less common, to
arra n g e for a m eeting, usually p re ­
ceded by a good dinner, th e n to o rgan­
ize by electing th e necessary officers,
adopt a constitution, and sim ple set of

I o w a ’s L a r g e s t

B u s in e ss

T r a in in g

S chool

Many banks, bond-houses, insurance
companies and other financial insti­
tutions employ A. I. B. graduates.
Write or telephone when you need
efficient office employes.
E. O. FENTON, Director

American Institute of Business
DES MOINES
10th and Grand
Tel. 4-4221

Northwestern Banker

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Federal Reserve Bank of St. Louis

3%

February 19b0

78

YOUR GRACIOUS HOST
FROM COAST TO COAST

The Gotham

by-laws, w hich should be suggested by
th e state association com m ittee, in or­
d er to create unifo rm ity in th e organi­
zations. As a m a tte r of fact, m ost re ­
gional clearinghouse associations are
alm ost identical to the county and dis­
tric t associations, w hich in m any in ­
stances have been in existence for
years.
So often you w ill find ban k ers w ho
seriously believe th a t it is im possible
for them to change th e ir closing hours
or reduce in te re st rates, w hereas o th er
b an k ers in the sam e area do not appear
to have any difficulty w h atsoever in
th is connection. Most of us know th a t
in actual practice any bank can do
business the sam e as a com petitor and
follow the sam e sound lines w ithout
th e loss of w o rthw hile business. These
associations provide a splendid oppor­

tu n ity for com petitors to become m uch
b etter acquainted personally, and iron
out th e ir com petitive difficulties. Af­
te r all, the average A m erican is v ery
hum an and in nearly every instance
proves to be a reg u lar fellow if they
both have the p roper op p o rtu n ity to
become b etter acquainted. T hen again,
it is possible by atten d in g m eetings of
these associations to discuss lines of
credit to custom ers w ho in m any in ­
stances have overlapping lines, and I
am sure we are all agreed th a t such
inform ation is alw ays m ost useful and
helps to stre n g th e n ou r in stitu tio n be­
cause, as a rule, no bank is sounder
th a n its note pouch. In some of the
older clearinghouse associations it has
been possible to provide for a reg u lar
exam iner or a cen tral office for an ex­
change of credit inform ation.

The Drake
The Blackstone

A sh o rt tim e ago th e Io w a C o u n ty S a v in g s B a n k , M aren g o , did a com plete i n ­
te rio r re m o d e lin g job, ta k in g out th e old cages a n d fix tu re s, a n d in s ta llin g new
m odern e q u ip m e n t of th e low -co u n ter ty p e . R. R. Sehroeder is v ice p re s id e n t
a n d c a s h ie r o f th e b a n k , a n d th e g e n tle m a n in th e p ic tu re , s ta n d in g b e h in d th e
c o u n te r, is V. E. James, te lle r.

TheToum fiouse

N e w h o u s e P a p e r Co*
¿ y i £*

i

“B etter P rinting P apers99

Belleuieui Biltmore

A.S. K IR K E B Y ,

/PAannging D ire c to r

K IR K E B y
HO TELS
Northwestern Banker

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

February 19W

W ith tire advent of 1940, we can be confident
in o u r o u tlo o k for th e new year. W e feel c ertain
th a t th e strong convictions th a t th e U n ited States
shall re m a in n e u tra l d u rin g th is p resen t w ar,
will give business renew ed h o p e an d courage.
W e are o p e ra tin g an d m a in ta in in g p a p e r w are­
houses in th e follow ing cities:
D es M oin es, D u b u q u e, M olin e, St. P a u l, and M in n eap olis

79

B IG G ES T CO M P ETITO R
(C ontinued from page 19)
A bout 37V2 p er cent of th e total
loans in th e associations come from
these tw elve a g ric u ltu ra l states. T h at
th is com petition is ru in o u s is evi­
denced by th e fact th a t th e P roduction
Credit associations them selves show a
deficit on th e ir actual operations for
1938. D uring th a t y ear th e ir operat-

H

W

o t e l

e l l in g t o n

W e are h a p p y to list am ong
o u r re g u la r guests, a larg e n u m ­
b e r of th e b a n k in g fra te rn ity .
Y ou too w ill th o ro u g h ly en jo y
o u r C ourtesy an d H o sp itality .
S u r p r i s in g ly R e a so n a b le R a tes
R oom s W ith Bath
$ 2 .0 0 — $ 2 .5 0

F a rn a m at 18th S treet
OMAHA

HARVESTING MACHINERY
18 8 6

I 9 3 ~9 ~~

Threshers Combines
Corn Pickers
D ependable products for over 50
years to Harvest and Thresh all
grains and seeds.
A good
owners.

investm ent

for

farm

A profitable business for dealers.
Safe and desirable farm paper is
profitable for local financing.

□

Wood Bros. Thresher Co.
D es M oines, Iowa

ing incom e and expenses w ere as follows:
O perating expenses
$6,273,209
Charge-offs and estim ated
losses rep resen ted by valu ­
ation reserve ad ju stm en ts 1,441,193
T o t a l ....................................
$7,714,402
O perating incom e
$6,857,708
D E F I C I T ................................
856,694
T o t a l .............................
$7,714,402
W ere it not for th e incom e received
am ounting to $3,383,177 from in v est­
m en t of Class A and Class B stock
proceeds and the accum ulated ea rn ­
ings w hich stock is supplied g ratis by
the governm ent and th e stockholders,
th e associations w ould have show n a
loss of $856,694 for th e year 1938.
In view of th e fact th a t th e num ber
of state banks in the nation has show n
a decline of 1934 du rin g 1935, 147 d u r­
ing 1936, 177 du rin g 1937 and 125 d u r­
ing 1938, banks w hich generally serve
th e sm all com m unities, it would seem
th a t some form of com petition is p u t­
tin g them out of business.
F ro m “The E a rn in g Pow er of
B an k s”, a study published by th e R e­
search Council of the A m erican B ank­
ers A ssociation, we learn th at, “In
1929 th e ratio of com m ercial loans
m ade by th e com m ercial banks w as
less th a n 16 per cent of th e total vol­
um e of trade, and d uring th e period
1929 to 1933 it averaged 17 per cent.
F o r 1934 to 1937 the average has been
9 p er cent, a ratio considerably below
th e 14 p er cent rate th a t w as steadily
m ain tained before th e W orld W ar.”
A ccording to th e F ed eral Deposit
In su ran ce C orporation’s an n u al rep o rt
of D ecem ber 31, 1938, th e average rate
of in te re st received on loans and av er­
age rate of in te re st paid on tim e and
savings deposits by in su red com m er­
cial b anks not m em bers of the F ederal
R eserve system , w hich classification
com prises the largest n u m ber of banks
th a t come in direct com petition w ith
th e P roduction Credit associations,
w as as follows:
A verage rate
of in te re st paid
A verage rate
on tim e and
of in terest
savings de­
received on
posits
Year
loans
2.77%
1934 . . . . 5.9%
2.28%
1935 . . . 5.75%
2.09%
1936 . . 5.96%
1.92%
1937 . . . 5.92%
1.82%
5.91%
1938
The P roduction C redit associations
operate on a basis of 3 per cent above
th e discount rate of the F ederal In ­
term ed iate C redit B ank and in 1938
o p erating on th is basis su stained an
operating loss. In 1934 non-m em ber
com m ercial banks operated on a basis

of a little over 3 per cent difference
betw een in te re st paid and in terest re ­
ceived. As th e earnings of banks w ere
declining, in order to rem ain solvent,
they w isely began to reduce the rate

M ERCHANTS
MUTUAL

B O N D IN G
COM PANY
Incorporated 1933

Home Office
VALLEY BANK BUILDING

Des Moines, Iowa

•

•

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

•

•

Write to

E. H. WARNER
S e c re ta ry a n d M a n a g e r

SA LES

essing Advertising Co.
Des M o in es

H a ta e A s t G

Our policy provides a m axim um
assessment of 2 x/i % in Zones
One and Two— and 3 x/i% in
Zone Three (W estern Iow a).

Hawkeye Mutual Hail
Insurance Association
Carver Bldg.

Fort D odge, Iowa

Northwestern Banker

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Federal Reserve Bank of St. Louis

a it

February 19^0

80

lìifi

TH E H O TE L OF T O D A Y

0he

*8vitem n

o f ^ onw w ow

»

Delving into the future, the designers of the
recreated Fontenelle have set the style for the
hotel of the next decade. Beauty and comfort
are emphasized in the new features and in
the new interiors throughout the hotel including lobbies, guest rooms, dining and
entertainment rooms, and the convention facil­
ities-all of which depict the fashion of 1940.

»
»

HOTEL

>
»
»

E NTENEI
E
,
0

1

OMAHA

NEBRASKA

»
Northwestern Banker

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

February 1940

yV /
V/
V/
V/
V/

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s/
V/
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S/
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of in terest paid on certificates and sav­
ings. T hey g radually m oved to a 4
per cent difference w ith o u t increasing
th e rate of in terest charged borrow ers,
and ap p aren tly could operate success­
fully on this basis if not too severely
handled by com petition w ith these
governm ental agencies.
In 1937 the A m erican B ankers asso­
ciation published a factual su rv ey of
Federal governm ent lending agencies,
prep ared by its Com m ittee on B ank­
ing Studies. Com m enting on th e com­
petition of Production C redit associa­
tions it declared:
“T here can be no question b u t th a t
m any sm all banks, w hose livelihood
depends on ag ricu ltu ral lending, have
suffered a loss of business and th a t
continued loss of business by these
in stitu tio n s will cut a t th e roots of the
A m erican system of b anking.”
We th u s have an agency, th e P ostal
Savings system , financed by th e gov­
ern m en t tak in g deposits aw ay from
banks by overbidding th em on th e
rate of in te re st paid. Sim ultaneously,
we have the P roduction C redit asso­
ciations w ith a governm ent-provided
capital tak in g loans aw ay from th e
sam e banks by underbidding th em on
th e rate of in terest received (charged
to b o rro w ers). And in sponsoring
these tw o institu tio n s, our F ederal
g overnm ent loses n ot only all it costs
to m ain tain them b u t it also, to g eth er
w ith th e various State governm ents
and subdivisions thereof, loses p ro ­
ceeds and revenue from incom e and
excess profits taxes, su rtaxes, pay roll
taxes, capital stock taxes, p ro p erty
taxes, and m any o ther form s of ta x a ­
tion both tangible and intangible
w hich banks m u st of necessity pay.
The am ount of such taxes can b e tte r
be com prehended w hen com pared
w ith dividends paid on com m on stock
of banks. The R esearch Council of
th e A m erican B ankers A ssociation in
th e paper en titled “T he E a rn in g
P ow er of B an k s” published in J a n ­
uary, 1939, lists th e am o u n t of taxes
paid by all in su red ban k s of th e
co u n try du rin g th e y e ar 1937 as $.23
p er $100.00 of deposits and dividends
paid on com m on stock as $.43 per
$100.00 of deposits. T he sum paid in
taxes am ounts to n early 53% p er cent
of th e dividends paid.
The F ed eral D eposit In su ran ce
C orporation set up by th e F ed eral
g overnm ent to in su re banks, finds
itself in th e unique position of g u a r­
anteeing th e deposits of those banks
w hich th e sam e g overnm ent is w eak­
ening by fo stering in stitu tio n s a t p u b ­
lic expense to com pete w ith them .
As individuals we pay heavy taxes to
su p p o rt th e governm ent. As tax p ay ers
we become our ow n com petitors

\

81
th ro u g h such u n d e rta k in g s by our
go v ern m en t an d th u s becom e ta x free.
W h a t a p ath e tic paradox! W e are
play in g b o th ends ag ain st th e m iddle
and th e re b y h a sten in g th e d e p a rtu re
of th e goose th a t lays th e golden eggs.
If b an k s should follow th e lead of
P rod u ctio n C redit associations in send­
ing out p erso n al solicitors for loans,
th e field of com petition could quickly
be broadened. C ertainly a break-dow n
of sound b an k in g econom y w ould fol­
low w ith th e re s u lt th a t it could easily
be h a rm fu l to both. A ccordingly, th e
F ed e ra l D eposit In su ra n c e C orpora­
tion w hich w ould have to b ear th e
b ru n t of losses should th e y occur, and
th e R econ stru ctio n F in an ce C orpora­
tion, w hich is still in te re ste d in b anks
th ro u g h its sale to th em of p referred
stock, should b o th be v ita lly in terested
in elim in atin g g o v ern m en t subsidized
com petition.
In view of th e fact th a t b an k s have
placed th e ir houses in order, th a t th e ir
deposits are now insured, th a t th ey
are m ak in g a fair, reasonable, and a t­
trac tiv e ra te of in te re st to borrow ers,
th a t th e y are n o t only able, b u t ready
and w illing, to m ake all new loans
co n sisten t w ith sound p rinciples of
banking, it seem s th a t in th e in te re st
of recovery, com petitive in stitu tio n s
like th e P ostal Savings system and th e
P rod u ctio n C redit associations should
now be abolished.

G
G a te C ity B ldg. & L o a n A s s o c i a t i o n . . . .
G e n e r a l M o t o r s A c c e p t a n c e C o r p ...............
H
H a w k e y e C a s u a l t y C o m p a n y .......................\
H a w k e y e M u t u a l H a i l I n s . A s s ’n ...............
H e n n ep in F e d e ra l Sav in g s a n d L o an A s­
s o c i a t i o n o f M i n n e a p o l i s ..............................
H o l l e y a n d S o n s .....................................................
H om e B uilding & L oan A s s o c ia tio n ....
H o m e F e d e r a l S a v i n g s & L o a n A s s ’n . .
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l W e l l i n g t o n ..................................................

74
38

ANOTHER
PROFITABLE
SERVICE

27
79
74
77
76
77
5
79

T h e righ t k in d o f in su ran ce
agency in a b an k can be b oth
in terestin g a n d
p rofitab le.
F arm ers U n ion L ife offers
m o d ern , salab le p o lic ie s —
p lu s an attractive a g e n c y
con tract fo r b anks.
W rite
fo r details.

I
I n v e s t o r s S y n d i c a t e ............................................. 41
lo w a - D e s M oines N at. B a n k a n d T r u s t
C o m p a n y ................................................................. 84
I o w a G u a r a n t e e , I n c ............................................. 41

J
J a c k l e y a n d C o m p a n y ........................................

35

K

K i r k e b y H o t e l s ........................................................
K o c h B r o s ............................................................ : . .
L
L a M o n t e a n d S o n ...................................................
L a m s o n B r o s ...............................................................
L e s s i n g A d v e r t i s i n g C o m p a n y .......................
L ive S to ck N a tio n a l B an k , C h icag o . . . .
L i v e S t o c k N a t i o n a l B a n k , O m a h a ..........
L iv e S to c k N a tio n a l B a n k , S ioux C ity . .
M
M c G u i r e , W e l c h & C o m p a n y .........................
M a n u f a c t u r e r s T r u s t C o m p a n y .....................
M erch an ts M utual B o n d in g C o m p a n y ...
M e r c h a n t s N a t i o n a l B a n k ..............................
M i d l a n d N a t ’l B a n k & T r u s t C o m p a n y . .
M i n n e s o t a C o m m e r c i a l M e n ’s A s s ’n . . . .
M i n n e a p o l i s M o l i n e I m p l e m e n t C o ..........
M oon P r in tin g & E n g r a v in g C om pany. .
M o r t g a g e I n v e s t m e n t C o r p o r a t i o n .............

78
80

FARMERS
U N IO N L IF E
Insurance Co.

7
43
79
71
47
50
43
32
79
2
54
30
56
81
40

Home Office, Des Moines, Iowa

/9 3 9 - Oust 5 OÍS /fn+u^ssidasu/ 7/¿ast^

N

N a t i o n a l B a n k o f W a t e r l o o ............................
N a t i o n a l S u r e t y C o r p o r a t i o n ..........................
N e w h o u s e P a p e r C o m p a n y ..............................
N o r t h w e s t e r n F e d e r a l S a v . & L o a n A s s ’n
N o r th w e s te r n N at. B a n k & T r u s t Co. . . .

67
6
78
76
52

T here must

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

be a r e a s o n

21

P

for f i f t y

P h i l a d e l p h i a N a t i o n a l B a n k ......................... 60
P o l i c y h o l d e r s M u t u a l C a s u a l t y C o ............. 77
P o l k C o u n t y F e d . S a v . & L o a n A s s ’n . . . 76

continued growth

R
R a d i s s o n H o t e l ........................................................ 80

Index to Advertisers
A
A l l e n W a l e s ...............................................................
A l l y n & C o m p a n y , A. C ........................................
A m e r i c a n I n s t i t u t e o f B u s i n e s s . ..................
A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o ..

83
40
77
46

B
B a n k e r s T r u s t C o m p a n y .................... 62 a n d
B e n F r a n k l i n F e d . S a v . a n d L o a n A s s ’n
B r e w e r C o m p a n y , V . W ......................................
B u r n s , P o t t e r a n d C o m p a n y ............................
B u rro u g h s A d d in g M ach in e C o m p an y . .

63
77
42
42
4

C

C e n tra l H a n o v e r B a n k a n d T r u s t Co. . .
C entral N a tio n a l B a n k an d T ru s t C o ...
C h a s e N a t i o n a l B a n k ...........................................
C i t y N a t ’l B a n k a n d T r u s t Co., C h i c a g o
C i t y N a t ’l B a n k , C l i n t o n ...................................
C o n t i n e n t a l I l l i n o i s N a t . B k . & T r u s t Co.
C o n t i n e n t a l N a t i o n a l B a n k ..............................
C r u m m e r a n d C o m p a n y , R . E .......................

72
3
8
42
70
48
49
42

II

D a v e n p o rt a n d C om pany, F. E . . 4 9 an d
D e L u x e C h e c k P r i n t e r s , I n c .........................
D e s M o i n e s B l d g . L o a n & S a v g s . A s s ’n
D r o v e r s N a t i o n a l B a n k ......................................

72
73
77
66

E

S

t h r o u g h G ood

S h a w , M c D e r m o t t & S p a r k s .......................... 36
S t . P a u l M e r c u r y & I n d e m n i t y C o ............. 28
S t o c k Y a r d s N a t ’l B a n k , S t. P a u l ............... 55

tim es and Bad.

T

T ow n M u tu al D w elling In su ra n c e Co. .

F a r m e r s U n i o n L i f e I n s . C o m p a n y ..........
F e d e r a l D i s c o u n t C o r p o r a t i o n .....................
F e d e r a l H o m e L o a n B a n k ...................
F i d e l i t y a n d D e p o s i t Co. o f M a r y l a n d . .
F ir s t F e d e ra l S av in g s an d L o an A sso ­
c i a t i o n , C h i c a g o ................................................
F ir s t F e d e ra l S avings an d L oan A sso­
c i a t i o n , M i n n e a p o l i s ......................................
F i r s t N a t i o n a l B a n k , C h i c a g o .......................
F i r s t N a t i o n a l B a n k , S i o u x C i t y ...............

81
39
74
29
76
77
58
65

26

U
U n i t e d F e d . S a v i n g s & L o a n A s s ’n .......... 76
U n i t e d S t a t e s C h e c k B o o k C o ....................... 70
U n i t e d S t a t e s N a t i o n a l B a n k ......................... 44
V

PRinTERS - BOOKBMDERS - OFFICE OUTFITTERS
STRTIOflERS - BUSI0ESS mflCHIflES

V a l l e y S a v i n g s B a n k ........................................... 68
W

W a l t e r s C o m p a n y , C h a r l e s E .........................
W a t e r l o o B l d g . & L o a n A s s ’n .......................
W e s t e r n M u t u a l F i r e I n s . C o ..........................
W o o d B r o s . T h r e s h e r C o ...................................

G R A

71
76
24
79

nD

f) V E n U E

FOURTH

GENUINE ENGRAVED STATIONERY
1000 LETTERHEADS
500 ENVELOPES
200 BUSINESS CARDS

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M O O N Ì RlilTinG &THGDVH G ®
1

FOUNDED 1907 BY DANIEL E. MOON

1210 Grand Ave.
Des Moines, Iowa

FI NE

BUSI NE SS

STATI ON E R Y

Northwestern Banker

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

A T

SPECIAL COMBINATION OFFER

E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 31
E p p l e y H o t e l s C o m p a n y ................................... 80
E r i c k s o n a n d C o m p a n y , C. E ....................... 77
F

years

February Í940

82

In the Directors' Room
Vantage Point

He Should W orry

Two m osquitoes once lit on th e fea­
tu res
Of tw o fair and peroxided creatures.
W hen asked by w h a t right,
T hey replied, “W e’re n o t tight,
W e’re ju s t seeing th e gam e from the
bleachers.”

F irs t New Y ear’s E ve celebrator:
“W hat are you doing?”
Second celebrator: “W ritin g a le tte r
to m yself.”
First: “W h at does it say?”
Second: “I don’t know. I w o n ’t get
it u n til tom orrow .”

Crop Rotation
M other: “A fter all, h e ’s only a boy,
and boys w ill sow th e ir w ild oats.”
F ath er: “Yes, b u t I w ouldn’t m ind
if he d id n ’t m ix so m uch rye w ith it.”

Resourceful
Scene, E d ito r’s Sanctum (p rin te r
ru sh in g in excitedly): “H e re ’s a fine
go! Giggiwig, th e m u rd erer, has ju s t
been found innocent, and th e Gov­
e rn o r has teleg rap h ed a pardon. W e’ve
got th e w hole account of th e hanging
set up, w ith illu stratio n s, and th e form
is on th e press.”
E d ito r (coolly): “D on’t get excited,
m an. P u t over th e account, in a large
‘cap’ head, ‘Giggiwigg pardoned. F u ll
account of w h a t he escaped’.”

The O dd Man
“How m any stu d en ts are th e re in
th e u n iv e rsity ? ”
“A bout one in every five.”

Ladder Alone
An excited fem ale voice cam e over
th e phone: “Two boys are try in g to
break into m y room th ro u g h th e w in ­
dow .”
“L isten, lady, y o u ’ve got th e w rong
n u m b er,” answ ered a voice. “T his isn ’t
police h ead q u arters, th is is th e fire de­
p a rtm e n t.”
“I know ,” she answ ered, “b u t m y
room is on th e second floor and th ey
need a ladder.”

Sudden Thoughts
A fool and his m oney sooner or later
w ind up in college.
A college education: S om ething th a t
enables a m an to get a job from a m an
w ho nev er w en t to school.
Said th e m ath professor:
“Now
w atch th e blackboard w hile I ru n
th ro u g h it once m ore.”
Someone has observed th a t it tak es
a stu d e n t 20 m in u tes longer to say
w h a t he th in k s th a n to tell w h a t he
knows.

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

Modern Youth
G randm a: “Did you ever h ear the
sto ry of th e th ree b ears?”
B right G randson: “I th in k so, ju st
give me th e punch line.”

Not So Dumb
An asylum inm ate sat fishing over a
flower bed. A visiting professor ap­
proached him and w ishing to be jolly
asked, “How m any have you caught?”
“You’re the n in th today,” w as the
reply.

W e Hope Not
B reathes th ere a m an w ith soul so
dead, W ho nev er h a th tu rn e d his head
and said, “H m m m , n ot bad!”

Missed Again
The host, fam ous for his h u n tin g ex­
ploits, w as show ing an aw ed g uest his
tro p h y room. As th e v isito r gazed in
w onder at the a rra y of heads and skins
placed about the room, he noticed a
large b lank space on th e wall.
“W hat is th a t blank space th e re ? ”
he asked.
“Oh,” replied th e h u n ter, “th a t’s a
tig er I shot at and m issed.”

Gone
Gal: “H andsom e, have you ever
loved and lost?”
Gent: “M illions, baby, m illions!”

Par
And How!
“A nd now ,” said th e teacher, “w ill
som eone please give us a sentence u s­
ing th e w ord ‘candor’?”
“Please ’m ,” said th e b rig h t little
boy in th e fro n t row, “m y papa had a
p re tty stenographer, b u t afte r m a saw
her, he candor.”

Lady: “Do you know w h at happens
to young m en w ho tell lies?”
W illie: “Yes, th ey a ttra c t the a tte n ­
tion of bigshots and soon m ake lots of
m oney.”
Lady: “Goodness, are you a cynic?”
W illie: “No, Pm a caddy.”

Pretzel
Pinched
Jane: “My Scotch boy friend sent
m e his p ictu re y esterd ay .”
Joan: “H ow does he look?”
Jane: “I don’t know yet. I h av en ’t
had it developed.”

Plenty Powerful
“I w as hypnotized last w eek.”
“W h a t’s hypnotized m ean?”
“W hy, to hypnotize is to get a m an
in y o u r power, and m ake him do w h a t­
ever you w an t.”
“T h a t’s not hypnotism , th a t’s m a r­
riage.”

April Fool
Old G entlem an (in crow ded bus):
“H as anyone lost a roll of bills w ith an
elastic around th em ?”
C horus of voices: “Yes, I have.”
Old gentlem an: “W ell, I ju st found
th e elastic.”

Gob: “T hey tell me h e r salary is five
h u n d red a week. Is th a t stra ig h t? ”
Pal: “W ell, yes and no.”
Gob: “W h at do you m ean?”
Pal: “She’s a co ntortionist.”

‘Bye Brother
“W e can’t have any fun th is eve­
ning. All I have in m y pocket is some
sm all change.”
“Well, w h at do you th in k it takes
to send m y kid b ro th e r to the movie?
A five-dollar bill?”

That Drunk Again
D runk (holding door key): “W hish
one’v th esh e keyholesh sh ’d I try ? ”
Pal: “T h is’n h ere.”
D runk: “Okay, okay. J u s h ’ a m in n it
. . . one m ore queshtion.”
Pal: “W ’ash it? ”
D runk: “W hish one’v theshe keysh
sh ’d I p u t in it? ”

In the last five years we have introduced
a complete line of NEW MODELS.
In the last five years our sales have
increased over 5 0 0 PERCENT.
We will send you a booklet describing our machines
if you will be kind enough to write for it.

ALLEN WALES ADDING MACHINE CORPORATION
515 Madison Avenue, New York, N. Y.
SALES A N D SERVICE IN 400 A M ER ICA N CITIES AN D IN 40 FOREIGN COUNTRIES

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

M anufacturers o f A d d in g M achines S in ce 1 9 0 3

W e Co-operate
WITH IOWA BANKS TO MEET
SPECIAL CREDIT DEMANDS
As opportunities are presented, we co­
operate with Iowa Banks to meet the credit
requirements of their customers.
Such co-operation is offered as a helpful,
constructive service to our correspondent
Banks and their clients.

In no way do we

wish to compete for business belonging to
local Banks.
If you have customers who require larger
lines of credit than you can extend, we shall
be glad to discuss this business with you.

Since 1875 . . . A Dependable Correspondent Connection . . . Through G ood Times and Bad

Iow a -Des Moines National Bank
& Trust Company
M E MB E R


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

FEDERAL

DEPOSIT

INSURANCE

CORPORATIO N