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FEBRUARY 1945 OUR 5 0 th YEAR W A L L S T R E E T L O O K IN G T O W A R D T R IN IT Y C H U R C H F in a n c ia l C e n te r o f th e W o rld BUY U N IT E D •T A T E* .WAR BO ND S AND STAMPS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G . I. BILL BRIEFED FOR BUSY BANKERS Page 14 & -<k ^ r g < f c " < k <fe «¿ < ¿r «je ;> ? » y> » » >7 ^ ^ » - In d iv id u a l S e rv ic e ■< For 64 years, this bank, under the sam e continuous m an agem ent, h as grow n through individual service to each industrial, commercial, a n d financial account. «£ ^ «£ This sam e kind of individual service is fitted to each corre spondent of the large netw ork of bank accounts now served by the M erchants N ational Bank throughout the m iddle west. A CEDAR RAPIDS BANK ^ f CEDA R R A P ID S SERVICING A LL IOWA -< THE MERCHANTS NATIONAL BANK <■ <e O FFIC E R S ^^4 ^ 4 <c < << <■ J ames E. H am ilton , Chairman S. E. CoQUiLLETTE, President H. N. B oyson , Vice President Roy C. F olsom , Vice President Mark J. Myers , V. Pres. & Cashier George F. M iller, V. Pres. & Tr. Officer Marvin 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 a t t , Asst. Cashier L. W. B roulik , Asst. Cashier P eter B ailey , Asst. Cashier R. D. B row n , Asst. Cashier 0. A. K earney , Asst. Cashier S tanley J. M ohrbacher , Asst. Cashier E. B. Zba n e k , Building Manager Cedar R ap id s Member Federal 4 -,. ^ Iow a Deposit Insurance Corporation C N orthw estern Banker, published m onthly by the De Puy Publishing Company, at 527 Seventh St., Des Moines, Iowa. Subscription, 3 5 cp er copy, $3.00 per year. Entered as Second Class M atter January 1, 1895, at the P ost Office at Des Moines, Iowa, under A ct of March 3, 1870.'........... . ' https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • We extend our sincere appreciation to our many friends for their patience and understanding at a time when we can build and deliver only a limited number of adding machines because of our participation in war work. To the extent that we are able to produce Allen Wales Adding Machines with our present available facilities, we will continue to distribute them so as to meet the most urgent requirements. If you are in need of Adding Machines, please telephone our nearest agency or write to our home office for further information. ALLEN W WALES ADDING MACHINE CORPORATION 444 Madison Avenue, New York 22, N. Y. A WHOLLY-OWNED SUBSIDIARY OF https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE NATIONAL CASH REGISTER CO. tteprìnu-d i ' purlfrom 'es----° f »'<■ Insurance • lh7j ,nct- -Monitor H o m e S” * , ? x s < 2 S ' '?;:* 7 * £ K S ^ a S S s S i,gifts iS its Vital c i “n,ty- - f will and an T nL ,7 POS,,ion ;a n d ,w ih a f S!ty o f seldom been e Z l e d l n ? ° f » * < > " Z ? Z ° f ofrtieir wo th,,en togeth,n-” forThe“* ’ theSe gent,e- has a lw a ^ been ^ l abie characteristics of tl its ranks T , "fluence> intelligence anti ¿as. massed avoid the bad th i P° mts to secure the past and’fi C futUre must be the n^6 g0od and fore been, the 5,® H0ME co n tin u ea sT h t6? art of and the rightful h°S-en cust°dian of the „ ’as heret°- 1he,r to -iTHE HOME N EW FI RE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A U T O M O B I L E -fo n t t i d Z r - - ¿V Y O R K M A R I N E I N S U R A N C E 5 SAFETY Circus aerialists perform their incred ible acrobatics high above a stout, tautly drawn safety net. » » That net serves two purposes. It safeguards the performer in case of mishap —and, w h en a e r ia l a n tic s b e c o m e too breathtaking, reassures the audience that all is well. )> )> Likewise, La Monte Safety Paper not only protects checks again st fraudulent alteration, but g iv es depositors comforting assur ance that their bank is using the best known m eans of protecting them against the activities of check crimi n als.» » For La Monte Safety Paper is accep ted as America's STANDARD OF SAFETY in check protection. Is used so extensively by leading banks and corporations that all who have occasion to handle checks —business or personal — While One Enemy Remains Our Job Is N O T Done! find "the safety paper with the w avy lines" almost as familiar as currency itself. For samples ot La Monte Safety Paper see your Lithographer or Printer —or write us direct. LA MONTE GEORGE LA MONTE & SON Tho Wavy Lines are a La Monte Trade Mark OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PAPER NUTLEY, NEW JERSEY We su p p ly m an y b a n k s a n d b u sin e ss o rg an izatio n s with their own i n d i v i d u a l l y i d e n t i f i e d S a fe ty P ap e r. The issu in g o rg an iza tio n 's Trade-M ark is in the p a p e r itself a n d a p p e a r s on both the front a n d b a c k of the check. Such i n d i v i d u a l i z e d p a p e r p ro v id e s m axim um protection a g a in st counterfeiting —s a v e s B a n k s so rtin g time — h e lp s p reven t errors. N o rth w e ster n Banker F ebru ary 1945 FIELD WAREHOUSING! The Modern Method of Inventory Financing Som e of y o u r p resen t custom ers . . . as w ell as o th ers w hose business you w ou ld like to h ave , . . m ay find th e ir w o rk in g c ap ital insufficient fo r th e ir needs. M any have in v e n to rie s th a t offer so u n d o p p o rtu n itie s to you fo r W arehouse R eceipts L oans. O ur Field W areh o u sin g Service enables you to m ake those loans ag ain st in v e n to rie s sto red rig h t on the b o rro w e r’s ow n prem ises. W areh o u se R eceipts m ak e it possible fo r you to le n d in ex cess of open-line c re d it lim its, safely a n d p ro fitab ly . Wre are specialists in F ie ld W areh o u sin g . O u r ex p erien ce is lo n g . . . o u r re sp o n sib ility recognized. Without obligation, our representative will call on request and explain how our Field Warehousing serv ice provides collateral on inventories on the owner's location . . . gd. |Saul terminal OTarefyouöe Co. ST. PAUL, MINN. — Iowa Office — — Other Offices — 515 Iow a-D es M oines N ational Bank Building DES MOINES TELEPHONE 2-1203 MINNEAPOLIS MILWAUKEE INDIANAPOLIS DETROIT CHICAGO NEW YORK BOSTON PHILADELPHIA PITTSBURGH SYRACUSE MEMPHIS ATLANTA CHARLOTTE ALBANY, GA. T. C. CANNON, DISTRICT MANAGER The only company engaged in Field Warehousing with an office in Iowa N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary 1945 OUR 50th YEAR 7 n o iä h w e / t e r n FIFTIETH Y E A R N U M B ER 691 O ldest Financial Journal West of the Mississippi River Q uestion: D o you th in k a fu ll national service law , ivhich w o u ld cover m en and w om en 18 to 65, sh ou ld be enacted ? C. J. M ortensen, p resident, N ebras ka S tate B ank, Ord, N ebraska: “Of course, such a law as th is should have been enacted im m ediately in De cem ber 1941 a t th e tim e of D eclara tions of W ar. H ow ever, u n d e r th e A m erican idea of free e n te rp rise and capitalistic system , it w ould be alm ost im possible to reconcile our w ay of th o u g h t w ith such a procedure. Legis lation along th is line w as repeatedly advocated by th e A m erican Legion d u rin g th e early 1920’s in th a t in d u s try , labor and capital should all be d rafted into natio n al service im m edi ately a t th e o u tb reak of w ar and all be p u t on th e sam e basis w ith capital g ettin g a m axim um of 6 p e r cent re tu rn on investm ents. H ow ever, by th e tim e W orld W ar II started , we v eteran s w ere all too old, and en grossed in m oney m aking to m ake such a plan w orkable and our gov ern m en t w as ru n on th e basis of th e PAC, by th e PAC, and for th e PAC so th a t such a position did not reconcile w ith th e U nion point-of-view.” C. O. Johnson, president, Security S tate B ank, H annaford, N o rth Da kota: “I th in k not. I believe th a t th is w ould develop into a m ilitary con trolled g o v ern m en t and place us in th e sam e position as th e re st of th e w orld, w ith I th in k th e inevitable re sults: w ar. “H ow ever, th e re m ay be som e ju s ti fication for some form of control for th e d uration, if it could be term in ated a t th e p ro p er tim e.” G. S. Bacon, president, E m p ire State B ank, Cottonwood, M innesota: “I th in k th a t we should have full (T u rn to page 69, please) OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN THIS FEBRUARY, 1945, ISSUE Editorials 10 A cro ss th e D esk fro m th e P u b lish e r-........................................................ Feature Articles W h a t Do You T h in k ? .............................................................................................................. 7 D e a r E d ito r ............................................................................................................................. 9 F ro n tis p a g e ........................................................ 13 G. I. Bill B rie fe d fo r B u sy B a n k e rs ............................................... F red H. Q uiner 14 N ew s a n d V iew s of th e B a n k in g W o rld ....................................... Clifford De P uy 17 C ounsel a n d C ash fo r B u sin ess M en............................................ R alph M. W atson 18 C an T ru s te e a n d B en eficiary Be th e S a m e ? ................................................................... 22 Official C h an g es a t F i r s t N a tio n a l, C hicag o ............................................................... 24 Bonds and Investments G o v e rn m e n t S e c u r itie s — H o w M a n y a n d W h a t K in d ? .................... A. J. Martin 31 Insurance M y S o c ia l S e c u r ity T a l k ..................................................... ...................... Lou K. Newfield 37 State Banking News M in n e s o ta N e w s ...................................................................... N o r t h w e s t e r n N a tio n a l B a n k A n n o u n c e s P r o m o tio n s ____ _______________ T w in C ity N e w s ................................................................................................. S o u th D a k o ta N e w s ......................................................................................................................... S io u x F a l ls N e w s .............................. N o r th D a k o ta N e w s ..................................................... F a r g o N e w s ...... N e b r a s k a N e w s ............. J u n i o r B a n k e r N e w s .............................................................................John Lauritzen O m a h a C le a r in g s ................................................................................................................... L in c o ln L o ca ls ......................................................................................................................... Io w a N e w s ................................................................................................................................. 1944 F a c ts A b o u t I o w a ........................................................................................................ D es M o in es N e w s .................. ..................... ........ ......... ...................................................... . 43 44 45 49 50 52 52 55 55 56 59 61 61 65 The Directors' Room A F e w S h o rt S to rie s to M ake You L a u g h .......... ........................ ................................. 70 N O R T H W E S T E R N B A N K E R , 527 Seventh St., Des Moines 9, Iowa, Telephone 4 -8 1 6 3 C L IF F O R D DE PU Y, Publisher R A LP H W. M O O R H E A D Associate Publisher E L IZ A B E T H C O L E Advertising Assistant H EN R Y H. H A Y N E S Editor M A R G U E R IT E B R O W N Office Supervisor N E W Y O R K O F F IC E Frank P. Syms, V ic e President, 505 Fifth A v e ., Suite 1806 RUTH K IL L E N Associate Editor S A D IE E. W A Y Circulation Department Telephone MUrray H ill 2-0326 N orth w e stern Banker F ebru ary 19^5 8 MMict Je (¡Lütt cevtcsfwUmt htàlithèlih ft TH E CHASE N A T IO N A L BANK O F THE CITY OF N EW YO RK M em ber F ed e ra l Deposit Insurance Corporation N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary It)'¡5 O U R 5 0 th Y E A R 9 T h e f o llo w in g le tte rs w e r e re c e iv e d f r o m N o r th w e s te r n B a n k e r readers. Y o u r v ie w s a n d o p in io n s on a n y s u b je c t ivill b e g la d ly p u b l i s h e d in this colu m n . "Highest in 52 Years" ‘ ‘ I am enclosing a le tte r we have sent out to some 1,850 o f our people, th is in cluded some 300 boys in th e services. The le tte r w as accom panied by our D ecem ber 30, 1944, sta te m en t. I th o u g h t you would be in te re ste d in th is a n d also our la st sta te m en t. W e have been usin g th is form o f a le tte r w ith our sta te m e n ts tw ice a y e ar fo r th e p a st th re e y e ars or m ore and we are pleased w ith th e fav o rab le p u b lic ity we have received. ‘ 1In c id e n ta lly , our deposits are th e h ig h est in th e h isto ry of th e 52 y e ars of the b a n k ’s h isto ry . W e h ad a very good y e ar in 1944 and, all in all, we feel m uch en couraged. ’ ’ W . L. S pen c er , P resid en t, O akland S a v in g s Panic, O ak land, Iow a. ‘ ‘ I n our notice of our a n n u al m eeting we included th e w ord th a t a 12:30 lunch would be served to each stockholder and th e ir guest. “ I t cost the b a n k an d m yself a bout $25 apiece, b u t it saved me th a t m uch in w ear an d te a r an d I believe n ex t y ear the d irec to rs will tak e it all on. I th in k they found th a t w ith a fu ll stom ach m en are in a m ore receptive mood. ‘ ‘ One o f our local L adies ’ A id served a very nice d in n er a n d fu rn ish e d a n excellent room fo r our m eetin g a fte rw a rd s. ‘ ‘ A nyw ay, we are try in g it a g ain next year. ’ ’ E ber V. F l in t , Cashier, A n drew S a vin g s B a n k , A ndrew , Iow a. "To Congratulate You" “ I notice in th is m o n th ’s N o r th w estern B a n k er th a t you beg in your 50th y e ar of service to banks and bankers. I w a n t to be one o f the first b an k ers to c o n g ratu la te you on th is ann iv ersary . “ Y our e d ito rials have been tim ely and to the point, w hich gives us a lot of food fo r th o u g h t. F ew of us realize the tim e, effort an d th o u g h t necessary fo r a successful m ag azine. I have re ad the N o rth w ester n B a n k er fo r y ears an d would be d isappointed if I fa ile d to receive my copy each m onth. “ Y ou have filled your post fa ith fu lly an d well. W e b an k ers all know th a t you stan d fo r sound b a n k in g a n d im proved public re la tions. Y our a ctiv ities and other accom plish m ents have been h andled in a h ighly com m endable m anner. ’ ’ F ra nk C. Cro ne , E xecu tive Vice P resident, N atio n a l B a n k o f W ashington, W a sh ington,- Iow a. E d N o te : T hanks, indeed. "Never Heard of Clinton" “ The City N a tio n a l B ank of C linton will be 75 y ears old F e b ru a ry 1, 1945. I t sta rte d as a p riv a te b ank in 1870, w ith A. L. Stone an d A. G. Sm ith, bankers. No sta te b a n k in g law s a t th a t tim e. N a tio n a l c h a rte r is signed by Jo h n J . K nox, com ptroller o f c u r rency, d a te d 3-30-1880. C linton a t th a t tim e w as th e saw m ill center of th e w orld. Stone a n d Sm ith a rriv e d in C linton in Ja n u a ry , 1870, fro m Cam den, New Y ork. T hey had intended se ttlin g in L incoln, N eb rask a, and never h e ard of C linton u n til en ro u te w est they v isited relatives in D ixon, Illinois, who recom m ended C linton. I n less th a n th irty days a f te r a rriv in g in C linton, th ey h ad th e ir b a n k in operation. A. L. Stone served the bank fo r 31 years, A. G. Sm ith fo r 58 years, an d w ere th e o rig in a l d irecto rs in th e N a- (T u rn to page 58, please) Confer on Postwar Housing "Received Numerous Letters" “ I have received num erous le tte rs com m en tin g fa v o ra b ly on m y sto ry th a t you p u b lished in th e N o rth w este rn B a n k er in D e c em b er— a m o n g o th e rs, Thomas F. W allace, c h a irm a n , F a rm e rs & M ech an ics S a v in g s B a n k a t M in n e ap o lis, a n d m y old frie n d , Leo S teven s, o f L os A ngeles. T hese l e t te rs have m ade me very h a p p y d u rin g th e h oliday season. ’ ’ W. G. E d en s , 1212 W . N o rth Shore, Chicago, Illinois. "Distinct Departure" ‘ ‘ Enclosed is a copy of our B ep o rt to Stockholders fo r the y e ar 1944, in w hich we feel you m ay be in te re ste d , since it is a d istin c t d e p a rtu re , b o th in fo rm an d con te n t, from any other re p o rt th is com pany has ever m ade. ‘ ‘ I n it we have a tte m p te d , not only to provide m ore in fo rm a tio n to stockholders, b u t also we are m ailin g it to th e stockhold ers in advance of th e A nnual M eeting. ’ ’ F ra nk G. B u rrow s , A d v e r tis in g M anager, Irv in g T ru st Com pany, N ew Y o r k C ity. "Stockholders Like Free Lunch" “ W e have a p la n I w ould like to offer on how we b a n k ers in a ru ra l com m unity can g et our stockholders out to our stock holders ’ m eetings. “ I n th e p a st it h as been a b a ttle to have stock enough re p re se n ted a t our m eetings. “ W e held our a n n u a l m eeting la s t week a n d a b o u t 40 stockholders, re p re se n tin g 91 p e r cent of our stock, w ere presen t. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis c in g a n d U rb a n H o u s M EinMgB EofR Sth eof Athmee ricS uabnc oBmamn kittee rse AonssoMcoiartgtioang einF inc oannfere n ce in W a sh in g to n , D. C., la s t m o n th , stu d y te s tim o n y s u b m itte d to th e S u b c o m m itte e on P o s tw a r H o u sin g of th e U. S. S e n a te S p e c ia l C om m ittee on P o s tw a r E conom ic P o lic y a n d P la n n in g . L e f t to r ig h t s e a te d th e y a re : D. J. N eedham , g e n e ra l counsel A .B .A .; W. Randolph Burgess, p re s id e n t, A .B .A ., vice c h a irm a n of b o a rd , T he N a tio n a l C ity B a n k o f N ew Y ork, N ew Y o rk C ity ; A. George Gilman, p re sid e n t, M alden S a v in g s B a n k , M alden, M a ss a c h u se tts , c h a irm a n of th e A.B.A . su b c o m m itte e a n d p a s t p re sid e n t, A.B.A . S a v in g s D iv isio n ; F. G. A ddison, Jr., p re sid e n t, S e c u rity S a v in g s & C om m ercial B a n k , W a s h in g to n , D. C., c h a irm a n of A .B .A . C om m ittee on F e d e ra l L e g is la tio n ; P h ilip A. Benson, p re s id e n t, T he D im e S a v in g s B a n k o f B ro o k ly n , B ro o k ly n , N . Y., p a s t p re sid e n t, A .B .A .; W illiam A. Reckm an, p re sid e n t, W e s te rn B a n k & T ru s t C om pany, C in c in n a ti, Ohio. S ta n d ing, le f t to r ig h t: P. R. W illiam s, vice p re sid e n t, B a n k o f A m e ric a N . T. & S. A., L os A ngeles, C a lifo rn ia , p a s t p re sid e n t, A.B.A . S a v in g s D iv isio n ; E. W. Thomas, p re s id e n t, F i r s t N a tio n a l B a n k , G e tty s b u rg , P e n n s y lv a n ia ; E rnest M. F ischer, d e p u ty m a n a g e r o f A .B .A . a n d d ire c to r, R e se arc h M o rtg a g e a n d R e al E s ta te F in a n c e ; E. C. N orthrop, vice p re s id e n t a n d se c re ta ry , W a te rb u ry S a v in g s B a n k , W a te rb u ry , C o n n e c tic u t; J. O. B rott, a s s is ta n t g e n e ra l counsel, A.B.A . N orth w estern Banker F ebru ary 1945 10 A c ro ss th e D e sk in conflict over the B ureau of Economic W a r fa re :— “ Squandering the people’s money even in wartime is no proof of patriotism.” In analyzing w hat H enry W allace will do as S ecretary of Commerce, of course, rem ains to be seen, but there is certainly no question about his economic and political philosophy as can be ju d g ed by ju st a few of his speeches including the follow ing p arag ra p h s: 3) east jed.'ie ¡jotted.; As a rew ard for your years of service as the head of the R econstruction Finance C orporation, and S ecretary of Commerce, you have been “ de th ro n e d ” in order th a t P resid en t Roosevelt could pay a political debt to H enry W allace. B asically, it is a conflict of political philosophies which are at stake in kicking you out and p u ttin g in H enry W allace. Y our ad m inistration and loaning of money has been viewed through the eyes of an experienced business m an and banker. The senate by a vote of 74 to 12 has passed the George resolution tak in g the federal loan agencies from the D epartm ent of Commerce, and the final confirm ation of H enry W allace has been deferred u n til M arch 1. In looking briefly over your record, Mr. Jones, we notice these interesting p o in ts : 1. It is estimated that the total gains of the R.F.C. under your administration have amounted to $400,000,000 which is a rec ord for a government agency. 2. A study of loans to 88 railroads aggregating $780,000,000 shows that a large percentage have been liquidated. The balance will be paid when reorganizations are completed. 3. Authorizations for the assistance of 6,816 banks and trust companies in the form of pre ferred stock, capital notes and debentures amounted to $1,594,000,000. This had been paid down to $631,000,000 as of June 30, 1944. Y our record, Mr. Jones, fo r sound financing on behalf of our governm ent is proven by your record and as you rem arked when you and H enry were N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F e bru ary Í94-5 1. “ The corporations never believed in all out production. They always believed in holding down production for profit.” 2. “ The social revolution is on its way and the devil and all his angels can’t stop it.” 3. “ They will not be Socialists, Communists or Fascists, but plain men trying to gain by demo cratic methods the professed objective of the Communists, Socialists and Fascists.” 4. “ We are in for a profound revolution. Those of us who realize the inevitability of revo lution are anxious that it be gradual and bloodless instead of sudden and bloody.” 5. “ We are not going to use THE WHOLE Russian political and economic system here in the United States.” 6. “ It may be necessary to make a public utility out of agriculture. Every plowed field would have its permit sticking up on its post.” These statem ents indicate p re tty clearly the ideas which Mr. AVallace has in his m ind about the fu tu re of Am erica and the p ath it should follow and yet D orothy Thompson says “ Mr. Wallace is not a Socialist, ’ ’ and D orothy knows ‘ ‘ every thing. ” Anyw ay, Mr. Jones, as you leave your office the vast m ajo rity of the bankers and business men of A m erica extend to you th eir sincere appreciation of the fine w ork you have done, and we are quite sure th a t you agree w ith S enator H a rry B yrd, the dem ocratic senator from V irginia who p u t into the C ongressional Record the statem ent, “ I can think of no person less suited by temperament and business ability to undertake the management of the vast Reconstruction Finance Corporation than Mr. Wallace. He is the leader of the most radical groups in America. He is the close friend and co-worker of Sidney Hillman and the extreme elements of the C.I.O. The maintenance of free enterprise means the preservation of our Ameri can way of life. It may well be that the action of the United States senate on this appointment will have decisive effect on the future of the free en terprise system.” A nd besides, Mr. Jones, why d id n ’t P resid en t OUR 50th YEAR 11 From th e P u b lish er Roosevelt give H enry an A m bassadorship and let you continue as S ecretary of Commerce and head of the R.F.C.? Is service to the party more im p o rtan t th an service to the country? T hanks for serving your country so well, Mr. Jones. 2> ean ZU ixdt rU. B ell: As S u p erintendent of B anks of New Y ork, we are in terested in re ad in g w hat you have to say about the fu tu re in terest rates and th a t it is your belief th a t they will continue low because of our larg e national debt. You p u t it this w ay : “ The danger is not that the Government will go bankrupt. The important thing is that a debt of this size inevitably impels Government to intervene more and more in the economic system. All financial institutions must reconcile themselves to a lower average rate of return on assets than in the past. “ Accordingly, I take it as self-evident that the Federal Government will be compelled to do everything within its power to keep Government bonds from falling in price. That means, as a practical matter, keeping interest rates low.” I f in tere st ra te s are to continue low, Mr. Bell, then banks m ust increase th e ir efforts to secure more loans in order to add to th eir income and at the same tim e m aintain reasonable service charges as an additional source of income. It is tru e th a t in recent years, w ith a high volume of deposits, banks have been able to invest in governm ent bonds and m ake a profit on them and this situation will, no doubt, continue in the fu tu re. In any event all indications point to the fact th a t in tere st ra te s will continue low fo r some tim e in the future. 3beast Heo- 7 Cno-cuteif,: * . As C hairm an of the F ed eral Deposit Insurance C orporation, your annual re p o rt contains some in terestin g statem ents am ong w hich were th e s e : 1. If “ R egulation Q ” is sustained and enforced, it will u n doubtedly reduce the income from re m ittance exchange, a practice which has con tinued for decades and constitutes one of the im p o rtan t sources of income for sm all banks. 2. It is difficult to ju stify policies which require evaluation of one group of IT. S. obligations at OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis less th a n p ar or am ortized cost m erely because the obligations are in terest bearing w hen another kind of obligation, nam ely currency, is alw ays valued a t par. 3. D eposit insurance as now constituted cannot provide the expected protection tow ard depositors unless it is accom panied by effective supervision. The corporation by assum ing the risk of loss of most of the depositors, bears most of the u lti m ate financial cost resulting from lax super vision, poor m anagem ent, and adverse bankingdevelopm ents. 4. If the priv ate enterprise system is to su r vive, the financing of in d u stry for peace time p u r suits should not be u n d erta k en as a governm ental function, except in periods of emergency. W e believe th a t most of these suggestions are very sound, Mr. Crowley, although you will have a divergence of opinion concerning “ R egulation Q .” Also, the question of bank supervision is a very im p o rtan t one and everything should be done to stren g th en our exam ining procedure and keep our banks sound and solvent so th a t w hen the business curve again tu rn s dow nw ard, the banks of the country will be in a strong position and able to w ith stan d any tem porary setback. uhean lAJalien, B . tf-nenclt: As soon as goods become available, we quite agree w ith your statem ent th a t the volume of consum er credit will greatly increase. As deputy m anager of the A m erican B ankers Association, you expressed the opinion recently th a t consum er credit “ m ay reach $15,000,000,000, as com pared w ith the peak of $9,200,000,000 out standing in Decem ber 1941.” Y our recent survey was also in terestin g and pointed out th a t for the country as a whole 10,600 of the 14,675 banks rep o rted th a t they would continue or expand th eir consum er lending oper ations in the postw ar period. E very b anker even before the w ar is over should see th a t his installm ent loaning d epartm en t of his bank is in good “ ru n n in g o rd e r” so th a t he can tak e advantage of the increased dem and for the use of this type of financing when consum er goods again appear on the m ark et in large volume. N orth w e stern Banker F ebru ary Î945 \ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 G . I. Bill Briefed for Busy Bankers W hat You Should Know About One of Your Important Postwar Activities H E “Servicem en’s R ead ju stm en t Act of 1944” is com m only referred to as th e G. I. Bill of R ights. T his act provides a g re a t m any benefits for re tu rn in g v eteran s of the p re se n t w ar, such as education, hospitalization, u n em ploym ent benefits, assistance in finding jobs, and in su ran ce of loans for th e purch ase of hom es or farm s, for m odernizing or rep airin g homes, for p aying d elin q u en t indebtedness or taxes, or for going into business. T his su m m ary concerns th e reg u la tions governing loans to be m ade and in su red u n d e r th e provisions of the law. It is brief and is not in any w ay intended as a su b stitu te for study of th e regulations. U nusual and excep tional cases covered at length in th e regu latio n s have not been considered. T he p re se n t stu d y is offered in th e hope th a t it w ill be of som e assistance to th e busy lender in hand lin g th e needs of th e average v e te ra n w ho calls on him for a loan. T he purposes for w hich loans m ay be m ade and th e p ro cedure of h andling applications is con sidered at some length. The law provides th a t loans m ay be in su red w hen m ade to an eligible borro w er by any person, firm, association, and some govern m en tal agencies and cor porations, e ith e r state or federal. An eligible b o rro w er is an y m an or w om en w ho has served in th e arm y or n avy as long as n in ety days a fte r Septem ber 16, 1940, and before the officially declared term in a tio n of W orld W ar II, and has an honorable discharge, or w ho w as discharged be cause of disability in cu rred in service, regardless of len g th of service. A pplications for loans m u st be m ade w ith in tw o y ears a fte r discharge or th e end of th e w ar. No application m ay be filed la te r th a n five y ears a fte r th e end of th e w ar. In g eneral loans m ay be m ade up to $2,000.00 for not over tw e n ty y ears and th e in te re st ra te cannot exceed 4 p er cent. The follow ing classes of loans are eligible for guaran ty : 1. L oan to be used in p u rch asin g resid en tial pro p erty , or in co n stru c tion of a dw elling on im proved p ro p e rty ow ned by v e te ra n to be occupied as his home. (501-a) (4003). 2. L oan for th e purpose of m aking repairs, alteratio n s or im provem ents in, or paying delin q u en t indebtedness T v N o rth w e ste r n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary 19b5 By Fred H , Q uiner Vice President C e ntral National Bank Des Moines T h is law offers a lo t to th e veteran — m u ch of it g o o d a n d m o st of it p ra c tic a l. M u ch of th e ben efit is a lr e a d y a v a ila b le in o th e r g o v e r n m e n ta l agencies a n d so m e in long e s ta b lis h e d business prac tic es. It w o u l d seem th a t p a r t of th e s p ir it of th e la w c o u ld n ot be f o llo w e d b y a b a n k w i th o u t f u r th e r en a b lin g b a n k legislation. T h e p r e s e n t regu lations are i n c o m p l e te a n d n o t too c le a rly d r a w n — b u t w i t h o u t a d o u b t th e re w i ll be v o lu m e s o f a d d itio n s, m odific a tio n s a n d exp la n a tio n s. 7 he loan p r o c e d u r e is c o m p lic a te d b u t w i l l n o t confuse a n yo n e havin g e x p e r ie n c e w i t h F H A loans. or taxes on p ro p erty ow ned by a v e te ran and used as his home. (501-b) (4004). 3. Loan for purchase, rep air or im pro v em ent of land, stock or equipm ent to be used in farm ing conducted by veteran. (502). 4. L oan for purch asin g business, land, building, supplies, equipm ent or tools to be used by v eteran in pu rsu in g a gainful occupation o th er th a n farm ing. (503). 5. W hen first m ortgage is approved to be in su red by a F ederal Agency (FH A ) a G. I. Loan up to 20 p er cent of th e purchase price of th e property, b u t not over $2,000.00, m ay be insured. Such loans w ill be secured by a sec ond m ortgage and w ill be 100 per cent g uaranteed. In te re st on th e second m ortgage m u st not be m ore th a n 1 per cent h ig h er th a n on first m ortgage and m u st not exceed 4 per cent. Security E xcept second m ortgage ju st de scribed and loans less th a n $500.00 for m odernization, repair, delinquent paym ents, and taxes, all loans con cerning real estate and ch attels m ust be secured by first m ortgage. P ro p er hazard insurance protection m u st be required. (4007 and 4008). Amortization 1. Periodic p ay m en ts shall be re quired w hich w ill liquidate th e en tire debt and in terest in not over tw en ty years, except th a t in te re st for th e first y ear w ill be paid by th e A dm inis tra to r of V eterans Affairs at th e end of th a t year. 2. P rivilege of prep ay m en t m ay n o t be refused. Loan Guaranty Shall not exceed $2,000.00 on to tal of all loans to any single borrow er. Shall not exceed 50 p er cent of ag gregate obligations of v eteran in su red by A d m in istrato r for purposes de scribed in these regulations, except on second m ortgage, ju n io r to a first m o rt gage in su red by an agency of th e gov ern m en t w hich is 100 per cent g u a r anteed. The g u a ra n ty shall reduce in p ro portion as th e total loan is reduced. Loan Costs E xpenses u sually charged to th e bor row er in Real E state Loans m ay be charged to th e v eteran except th a t no com m ission or brokerage fee m ay be charged for arran g in g insurance on a G. I. Loan. Default 1. If th e default continues th ree m onths, th e bank m ay if it chooses m ake claim u n d er g u a ra n ty and notify A dm inistrator. 2. If default continues six m onths, th e ban k m u st notify th e A dm inis trato r. (4034). 3. B ank m ay th en m ake claim u n d er g u a ra n ty or recom m end indulgence to th e borrow er. (4035). Collection Under Guaranty 1. File claim on F inance F orm 1805. A m ount of claim m ay not exceed original g u aran ty . A m ount w ill be th e sam e percentage of th e debt a t th e tim e of claim as th e original g u a r an ty w as of th e total original debt. 2. T he A dm in istrato r m ay b rin g de lin q u en t paym ents up to date b u t has th e option to do th is only once. OUR 50th YEAR 15 3. He m ay pay claim w ith in one m o n th and n o t re q u ire foreclosure. 4. He m ay pay claim im m ediately an d req u ire foreclosure. 5. If foreclosure is necessary, th e reg u latio n s g overning sam e should be carefu lly studied. Subrogation T he act and th e reg u latio n s provide th a t th e A d m in istrato r be su brogated to th e lien rig h ts of th e lender to th e am o u n t of p ay m en ts m ade because of th e g u aran ty , b u t th e claim of th e A d m in istrato r is ju n io r to th e cre d it o r’s rig h ts ag ain st th e d ebtor and th e m ortgaged pro p erty . In o th er w ords, in case of defau lt and foreclosure, the A d m in istrato r w ill pay to th e cred ito r th e am o u n t due u n d e r th e g u a ra n ty and th e liquidation of th e secu rity w ould be used to satisfy th e balance of th e debt. A ny value rem ain in g a fte r a c re d ito r’s claim w as satisfied w ould be paid to th e A dm inistrator. T h ree different sets of reg u latio n s have been issued. The first governs hom e loans u n d e r section 501 an d 505. T he second governs loans for farm s an d farm eq u ip m en t u n d e r section 502 of th e Act, and th e th ird reg u latio n s gov ern b u siness loans u n d e r section 503. The H om e L oan R egulations u n d er section 501 give a g re a t deal of space to definition^ of term s used in th e reg ulations. Tiiis section provides for in su ran ce of loans to be used for p u r chasing or b uilding resid en tial p ro p e rty to be u sed by th e v e te ra n as his hom e. In applications of th is k in d th e v e te ra n m u st satisfy th e A dm inis tra to r that: (a) T he proceeds of th e loan w ill be used to pay for th e pro p erty . (b) T he te rm s of p ay m en t b ear a pro p er relatio n to his p re se n t and an ticip ated incom e and expenses. (c) T he p ro p e rty is suitable for dw elling purposes. (d) T he pu rch ase price does not exceed th e reasonable n o rm al value of th e pro p erty . (e) T he loan ap p ears practicable. Section 501 (b) au th o rizes loans for th e purpose of m aking rep airs, a lte r atio n s or im provem ents in, or paying d elin q u en t indebtedness or tax es on p ro p e rty ow ned by a v e te ra n and used as his hom e. In re p a ir loans it m u st be show n th a t th e am o u n t of th e loan w ill b ear a p ro p er relatio n to th e value of th e property. Loans u n d e r $500.00 m ay be m ade w ith o u t re q u irin g a m ortgage. H om e loans over $500.00 m u st be secured by a first m ortgage, unless th e first m o rt gage is in su red by a F ed eral Agency, in w hich case a G. I. L oan m ay be secured by a second m ortgage, the OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis am o u nt being lim ited to 20 p er cent of th e purchase price of th e property. Procedure in Making G. I. Loans 1. V eteran calls a t th e b ank and w ith th e b a n k ’s assistance fills out applica tio n form 1802. (4024). 2. B ank in quires of V eterans Ad m in istratio n if borrow er is eligible and th e am ount of his available guaranty. 3. V eterans A d m inistration w ill fu r n ish certification of eligibility form 1800, also nam e of an approval ap praiser, w ho w ill be em ployed to ap praise th e property. 9. In loans of $500.00 or less follow th e sam e procedure modified to con form to p arag rap h 5 of Section 4024. Section 505 provides for 100 p er cent insurance of 20 p er cent loans secured by a second m ortgage w hen th e first m ortgage is in su red by an Agency of th e G overnm ent. The V eterans Ad m in istra to r has arran g ed for th e FH A to act as his agent in handling applica tions u n d er th is section. A pplications should be handled as follows: first secure Certification of Eligibility, th en subm it all of th e papers listed in the preceding p aragraph, to g eth er w ith th e FH A applications, to th e F ederal H ousing A dm inistration office. T h at office w ill process th e application, and if approved, w ill issue th e FH A com m itm en t and G. I. approval and re tu rn w ith in stru ctio n s for closing. The second regulations issued are for F a rm Loans u n d er Section 502. T his is th e action of th e law w hich p ro vides for insurance of loans for p u r chasing land, buildings, livestock, equipm ent, m achinery or im plem ents, or for repairing, altering, or im prov ing buildings or equipm ent to be used in farm ing operations conducted by a veteran. Who May Borrow F R E D H. Q U IN E R “ W e owe an oblig atio n” 4. The b ank th e n subm its to the V eterans A dm inistration A gency the following: Certification of E ligibility. Loan G u aran ty Certificate. O riginal A pplication (F orm 1802). C redit R eport. A ppraisal Report. P u rchase Contract. P roposed Closing Statem ent. H azard In su ran ce Inform ation. 5. A gency w ill review papers and subm it recom m endation to th e Ad m in istrato r. 6. If approved, th e A d m in istrato r w ill execute Loan G u aranty Certifi cate (P154028) w hich w ill be sent to th e b ank w ith all o th er papers and in stru ctio n s for closing. 7. T he bank w ill th e n have note and m ortgage p ro perly executed, secure insurance, record m ortgage, secure satisfactory evidence of title, disburse funds, and file a detailed re p o rt w ith th e a d m in istrato r w ith in tw o m onths (4031). 8. W hen re p o rt is filed, th e Loan G u aranty Certificate becomes ef fective. A ny eligible v eteran w ho m u st also have such actual know ledge of farm ing and be of such ch aracter and in d u stry as to indicate he w ill likely succeed in farm ing operations. His financial condition m u st be such th a t he should be able to farm successfully. Security Required W here th e loan is for purchase of real estate, it m u st be secured by a first m ortgage unless it is m ade u n d er Sec tion 505 of the act. Loans for personal p ro p erty m u st be secured by ch attel m ortgage or conditional sales contract eith er of w hich m u st be a first lien against th e property. Loans of $500.00 or less m ay be in su red w ith o u t se curity. AM ORTIZATION—Same as Home Loans except th a t borrow er and lender m ay agree th a t no principal paym ent w ill be req u ired th e first th ree years. LOAN G UARANTEE AND LOAN COSTS—Same as Home Loans. Procedure in Making G. I. Loans Under Section 502 (a) If th e V eteran does n ot know th e com m unity he should get advice from th e V eterans A dvisory Com m it tee w hich w ill function in connection w ith th e County A gent’s Office. (b) V eteran w ill th e n apply th ro u g h his bank w ho w ill handle his applica tion in th e sam e m an n er as a Home L oan b u t using th e application form N o rth w e ster n Banker F ebru ary 19^5 16 for farm loans. The b ank subm its th e application to a V eterans Loan C erti fying C om m ittee w hich operates in conjunction w ith th e F a rm Security A d m inistration. T his com m ittee acts as A gent for th e V eterans A d m in istra tion. D efault and collection u n d e r th e g u a ra n ty are handled th e sam e as in Hom e Loans. T he w hole p rocedure of h andling farm real estate loans is exactly th e sam e as hom e loans. A pplications for stock and equipm ent loans are sim ilar, except th a t th e secu rity w ill be a ch attel m ortgage or conditional sales contract, and th e date of final m a tu rity of th e note m u st tak e into account th e useful life of th e m ortgaged property. T he th ird set of reg u latio n s are for B usiness Loans u n d e r Section 503 of th e Act. W hile th e reg u latio n s have been issued, the req u ired application form s have n o t been p rinted; th e re fore, little can be done in actual p rac tice except to secure Certification of E ligibility and determ in e to th e satis faction of th e lender if th e loan applied for is practicable. Proceeds of th e loan u n d e r Section 503 m u st be used for pu rch ase of b u si ness, land, buildings, supplies, equip m ent, m ach in ery or tools to be used by the applicant in p u rsu in g a gainful occupation o th er th a n ag ricu ltu re. The p ro p erty m u st be useful and necessary in th e business. The ab ility and expe rience of th e applicant, and general conditions m u st be such th a t th e v e te r an w ould likely succeed in his v en tu re. The purch ase price m u st not exceed th e reasonable norm al value of th e property. The loan m u st ap p ear p ra c ticable. Loans for p u rchase of business m ust have final m a tu rity not in excess of five years. The v e te ra n m u st have an active p a rt in th e m anagem ent and direction of th e business, good will m ust be included and th e seller m ust agree not to engage in a sim ilar b u si ness for a tim e and in an area as seller and p u rch aser shall agree. All of th e assets of th e business m u st be pledged as secu rity for th e loan. A lien on business real estate m u st be a first m ortgage; on personal p ro p e rty it m ay be a secondary m ortgage if th e first lien secures p a rt of th e pu rch ase price. Loans for in v en to ry and o th er w orking capital are not included in th e Act. Loans m ay be m ade for p u rch ase of equipm ent, m achinery or tools. If for the w hole pu rch ase price, th e y should be secured by a first lien, eith e r a m ortgage or a conditional sales con tra c t and should not ru n over th ree years. A loan for dow n pay m en t on such articles m ay be m ade for not over one-third of th e pu rch ase price and m u st not be m ore th a n $1,000.00, N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary 1945 if less th a n $500.00 it m ust be paid in one year; if over $500.00 in tw o years. Life insurance m ay be accepted as additional security. The procedure to follow in su b m it tin g an application un d er th is section is th e sam e as for hom e loans except th a t th e application form s should be those provided for business loans. In connection w ith real estate loans, th e C om ptroller ru led th a t a second m ortgage m ade u n d er section 505 of th e G. I. Law w ill not be considered a violation of th e F ederal R eserve Act since the p rim ary security is th e g u ar antee of th e V eterans A dm inistrator. He has also ru led th a t conventional real estate loans m ay be m ade in an am ount equal to 60 p er cent of the value of th e p ro p erty plus w h atev er am o u nt is g u aran teed by th e V eterans A dm inistration provided th e loan o therw ise conform s to Section 24 of th e F ederal R eserve Act. It w ould seem th a t such a loan m u st necessarily be com pletely am ortized in a ten-year period to conform to th e req u irem en ts of both th e G. I. Law and the F ederal R eserve Act. U niversity w ith the degrees of Ph.B. and M.A. in th e College of L iberal A rts, and LL.B., College of Law, 1940. He w as an in stru c to r in C reighton P rep and later in th e College of Com m erce at C reighton before becom ing special agent, F. B. I. in 1940. H e is a m em ber of th e N ebraska B ar Asso ciation and th e Young B usiness M en’s Association. Four Promotions Prom otions at M ississippi Valley T ru st Company, St. Louis, last m onth included th e elevation of C harles H er m an from a ssistan t counsel to counsel, replacing A. H olt Roudebush, retired , New Trust Department W. Dean Vogel, a vice presid en t of th e Live Stock N ational B ank for the p ast y ear and a half, has been ap pointed head of th e b a n k ’s new ly established tru s t departm ent, A lvin E. Johnson, president, announced Ja n u a ry 27th. Mr. Vogel, form erly engaged in ban k ing at A tlantic, Iowa, came to w. D E A N V O G E L H eads Trust Departm ent Om aha and becam e affiliated w ith the Live Stock N ational B ank in 1943. A ssisting him in th e direction of the tru s t d ep artm en t w ill be W. W allace K eenan, a special agent for the Federal B ureau of Investigation for five years, w ho joined th e Live Stock N ational B ank th is m onth and who w ill be as sista n t tru s t officer. K eenan is a g rad u ate of Creighton M. C. HO O K , JR. B ecom es A ssistan t V ice President and th e advancem ent of O. W ayne Fosher, M. C. Hook, Jr., and A. W. H uey to a ssistan t vice presidents. Mr. H erm an has been w ith th e bank since 1919, and had experience in the tran sit, discount and p u rchasing de p artm en ts before becom ing associated w ith th e legal dep artm en t in 1926. He had been a ssistan t counsel since 1938. Mr. H uey w as elected an a ssistan t secretary of the tru s t com pany in 1937. P reviously he had been associated w ith the bond departm ent. He is well know n to ban k ers th ro u g h o u t Mis souri and Illinois. Mr. Hook, w ho is also well know n to correspondent bankers, especially th ro u g h o u t M issouri, Iow a and N e braska, becam e an a ssistan t secretary of th e tru s t com pany in 1941. H e had previously been associated w ith the bond d ep artm en t of M ercantile-Com m erce B ank and T ru st Company. Mr. F o sher has been m anager of the b a n k ’s installm en t loan d ep artm en t since 1940, and w ill continue in his new capacity to direct the affairs of the departm ent. OUR 50th YEAR 17 N e w s a n d V ie w s O F THE B A N K IN G W O R L D By Clifford DePuy | OHN A. CH ANGSTROM, vice presi- d ent of th e O m aha N ational Bank, is w ell rep resen ted in th e arm ed serv ices, as L ieu ten an t (j. g.) Frank C hangstrom , 31, has been w orking w ith th e Seabees for 18 m onths in th e South Pacific and w as hom e recen tly for a sh o rt v isit before going to Camp Daley, R hode Island, for reassignm ent. Captain H olm es E m pson, 28, and a son-in-law, is w ith th e arm y tra n sp o rt service and has been in A ustralia, New Guinea, and m ore recen tly in Leyte, and M ajor W alter W . K ey, 35, a fo ster son, is w ith th e F ifth A uxil iary Surgical G roup in G erm any. Two le tte rs have been received in the last 30 days by th e N o r t h w e s t e r n B a n k e r from Lt. N orm an A. M iller, Com pany D, 313th In fa n try , APO 79, New Y ork City, and w ho is fighting it out w ith th e G erm ans in G erm any. Lt. M iller w as form erly associated w ith th e N o r t h w e s t e r n B a n k e r and his lette rs give us a “blow by blow ” de scrip tio n of w h a t goes on w h ere th e fighting is really tough. H ere are his m ost recen t com m uni cations to us: France, January 7, 1945 “W h a t the hell do yo u suppose is w rong w ith 1945? W e gave up som e good hard-earned fatherland to come high up in these cold snow-covered m ou n ta in s to help our friends, and boy! — th e y cut us off and w e ’ve opened se v eral routes only to find n ew kra u t units. I t ’s the m ost am azing th in g I ’ve ever seen. F irst w e annihilate a bat talion on one side and n e x t w e get one behind us— th e n w e find th e m on the hills to our flanks. Y ou can buy $1,000 w o rth of bonds now , as I need a n ew jeep (again). I take p re tty dim vie w of w a lkin g around ‘these here hills.’ “L a st n ig h t w e fo u g h t th e m off as close as 25 yards, as th e y tried a Jap anese typ e assault on our little village — shou tin g and all. B u t w e still get ’em .” G erm any, Jan u a ry 16, 1945 “I th in k I ’ve experienced the w orst now . Can you im agine holding half a village and a P anzer Spearhead hold ing the oth er half, and at the sam e tim e having th e m bypass both sides of the town? W e n o w have our planes bom bing and straffing th e ir half (m ost of the tim e) and th eir n ew jet-propelled OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis w ork over our half at the speed of sound. In the m id st of this up comes a tru ck w ith cigarette rations, so here I sit w ith tw o cartons and don’t sm oke — w ish I could help you, but m y bud dies are using p len ty these days. W e ’ll still lick th em — Soon!!” R obert H. Jackson, associate justice of th e Suprem e Court, believes th a t “our m ost im p o rtan t aim should be to w rite a peace th a t m en will w an t to h o n o r,” because if m en should w ant to fight in th e fu tu re, “N ot all of the docum ents or resolu tion s of today w ill stop them and our real problem is how to order th e new w orld so th a t the com ing g enerations will not need to fight and w ill not w an t to fight.” Service m en, in asking for airplane reserv atio n s sim ply say, “I am not ask in g for any favors; ju st treat me lik e a dog—a R oosevelt dog.” F rank W arner, secretary of the Iowa B ankers A ssociation, has announced th a t th e Group M eetings, w hich w ere to have been held in Sioux City on F e b ru a ry 12th and in B urlington on F e b ru a ry 22nd, have been called off, as th e W ar Com m ittee on Conventions in W ashington, D. C., w ould not g ra n t perm its for these gatherings. Robert A. Brow n, ad v ertising m an ager of th e F irst W isconsin N ational B ank of M ilwaukee, in a le tte r to the N o r t h w e s t e r n B a n k e r , sent us a story w hich w as full of “love and k isse s,” both delivered by rem ote control th ro u g h the bank for one of th e ir cus tom ers. It all happened w hen P rivate Rob ert W. G uenther of Sheyboygan, W is consin, w ho is now in France, m et C atherine Gonski, 1243 N orth T hird Street, M ilwaukee, W isconsin, a few y ears ago. It w as love at first, second and th ird sight and w ith th e good old co rre spondence school follow-up system P riv ate G uenther w anted to give C ath erine a ring, b ut he w as far from hom e and besides he w asn ’t sure about th e jew elry stores in France, w hich th e G erm ans had p re tty w ell depleted of jew elry, and especially diam ond rings. (T u rn to page 66, please) ^Catherine and Cupid ' A. G. “ C upid” Casper, c ash ie r, F i r s t W isconsin N a tio n a l B a n k , M ilw au k ee, p re s e n tin g to Catherine G onski a rin£ fo r P riv a te R obert W. Guenther, who is a c u sto m e r of th e b a n k , b u t a t th e m om ent is also “ e n g a g e d ” on th e w e ste rn f ro n t in F ra n c e . N orth w estern Banker F ebru ary 19J5 18 Counsel and Cash for Business Men W hat Bankers of South Dakota Must Do if They Are to Play the Proper Part in Financing Postwar Business in Their Community OO m any banks have been com pla cent about th e ir ever-increasing deposits and satisfacto ry earnings from service charges and in te re st on g ov ern m en t bonds. Inasm uch as our farm ers are in th e best condition in th e ir history, it is, therefore, th e sm all businessm an th a t we m ust aid w ith our counsel and o u r cash. F in an cin g p o stw ar sm all business does not contem plate an y reckless loan ing policies, nor m aking an y loans th a t are not going to be a benefit to th e borrow er and to th e com m unity. A com plete record of loans m ade and re jected should be kept, as th e ABA w ill undoubtedly need th is in fo rm atio n in contacting Congress on legislation u n favorable to banks. The follow ing m ethods of m aking loans are recom m ended: T By Ralph M. W atson President Northwest Se c urity National Bank Sioux Falls, South Dakota business he is already operating. A b an k er w ill need, perhaps, to tra in his custom ers to be m ore cooperative in fu rn ish in g pro p er financial statem en ts at periodical tim es, w ith operating figures. A com plete ru n n in g histo ry Term Loans E ach loan is an individual case, and no ru les can be set up. A loan will v ary from one to five years, secured if possible, w ith am ortized paym ents, p referab ly m onthly, w ith in th e ability of th e borro w er to meet. P ro p er fi nancial statem en ts and o p eratin g fig u res m u st be kep t in th e files, and ex am in ers are n o t likely to criticize if th e credit data is available and if p ay m ents are cu rren t. The possible a r ran g em en ts th a t can be m ade to set up a te rm loan are infinite. In m any cases, a real estate m ortgage on p lan t and equipm ent w ill w o rk out satis factorily. Several of th e large life in surance com panies are now offering long-term financing on loans origi nated by th e banks in w hich th e b anks m ay p articip ate to th e ir legal limit. These loans provide a b an k w ith w h at practically am ounts to dem and paper, w ith a 2-year final m atu rity . Small Business Loan Departments T his is th e class of business w ith w hich we are m ost fam iliar, and in w hich w e have alw ays been engaged, b u t th e possibility of extending th is class of credit is unlim ited. In m any of th e larg er city b an k s special sm all loan d ep artm en ts have been or w ill be established, b u t in our ow n state th e usual loaning officer w ill sim ply be a little m ore p a tie n t and a little m ore resourceful in figuring out some w ay to help Jo h n Jones get sta rte d in a sm all business, or to get an ex tra thou san d dollars or tw o p u t into a N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F e b ru a ry 19^5 paper too large for th e local b an k to handle. T he correspondent banks are a le rt to th is op p o rtu n ity and no co u n try b ank in South D akota need feel any concern over n ot gettin g splendid cooperation. Years of friendly relationships betw een th e co u n try ban k and th e city correspondents have given th e South D akota banks m uch credit. T his facility is n ot new to South D akota bankers, as for y ears feeder and range cattle loans have been negotiated in this m anner. P aper of w holesalers, m an u factu rers, and n u m erous o th er classes of borrow ers can be cared for on arran g em en ts m u tu ally satisfactory betw een th e bor row er, th e local banker, and th e city correspondent. In some cases th e cor resp o n d en t b ank takes all of th e loan, or it w ill participate. It is urged th a t the loan be kep t in th e ban k in g sys tem . Go to any am ount of trouble to w ork o ut a plan, and only as a last re so rt let it get into a g overnm ent agency. Credit Groups In South D akota th e m a tte r of o r ganizing a credit group is receiving consideration and if th e need arises, some such plan of course w ill be established. Education Program R A L P H M. W A T S O N “South 'Dakota banks must be r ea d y ’’ in th e credit file is essential. In stall m ent paym ents w ill take th e paper out of th e capital or slow loan classifica tion, and if th e borrow er is operating w ith in his capacity, his earnings can be plowed back into the business as rep ay m en t on his loan. A loan of this so rt can be revam ped from tim e to tim e according to th e needs of th e custom er. This type of loan is es pecially a made-to-fit deal, and each loan w ill be on a different basis. It is su rp risin g to realize the m ultitudinous o p p o rtunities th a t offer them selves to set up a loan of th is kind on th e proper basis. T his is principally a ch aracter and ability loan. Correspondent Bank Relationship A lready th e banks in th e larger cen ters of th e n o rth w est have w ritte n to th e ir South D akota banks offering th e ir services in h an dling desirable W e ban k ers in South D akota need to advertise our w ares to let our p u b lic know th a t we are in business to loan money, and th a t our b an k sta te m ents show we are in a position to take care of th e needs of th e state. N aturally, our p resen t show-case con dition is a g reat relief from th e b u r dens of th e early 20’s and th e 30’s, w hen we certain ly w ere not in any such shape. W e m u st not forget th a t our p resen t obligation is to p u t th is trem endous source of m oney to w ork again in th e channels of business in South Dakota. The priv ate en terp rise system of b anking m u st regain and hold its position. E ducational and publicity plans should be u n d ertak en by th e ban k ers of th e state them selves. The State A ssociation, th ro u g h th e facilities of its group m eetings and its ann u al m eeting should m ake this our 1945 objective. Local C ham bers of Com merce, CED com m ittees, state and city, (T u rn to page 20, please) OUR 50th YEAR 19 P ro m p t T ra n s it S e rv ice THE OMAHA NATIONAL BANK Member OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Fedirai Deboli» insurance Corboration N o rth w e stern Banker F ebru ary 19^5 20 CO U N SEL AND C A SH (C ontinued from page 18) auth o rities, credit and fra te rn a l asso ciations, ag ricu ltu ral and in d u strial organizations, and o th er sim ilar u n its should be vigorous in prom oting th e possible developm ents th a t are ahead, and th e y should have th e assurance th a t th e b an k s of South D akota are able, ready, and w illing to do th e neces sary financing. Our m otto m u st be “The B anks’ B usiness is to F inance B usiness.” as a d ju ta n t of th e H ead q u arters Com m and of S.O.S. H ead q u arters in E n g land. On Railroad Board P hilip R. Clarke, presid en t of the City N ational B ank and T ru st Com p an y of Chicago, w as elected to the board of th e P ennsylvania Railroad Sweden, and is a grad u ate of th e Royal Polytechnical U niversity of Sweden as a chem ist. He also w as g rad u ated from th e U niversity of Commerce, Stockholm, m ajoring in trad e tech nique, economics and law. A fter leav ing school Mr. Unge had w ide ex p eri ence in E uropean countries in foreign trad e technique. He speaks six lan guages and has traveled over w estern E urope and w estern L atin A m erica ex tensively. Continental Changes Assistant Cashier Follow ing a m eeting of d irectors of F irs t N ational B ank of M inneapolis, L ym an E. W akefield, president, a n nounced th e election as a ssista n t cash ier of L ieu ten an t Colonel W illiam H. W illiam s, form er em ploye of th e b ank recen tly re tu rn e d to M inneapolis a ft er four years of m ilitary service. E n te rin g th e b a n k ’s em ploy in 1923, W illiam s served in th e discount, u til ity and au d itin g d e p artm en ts u n til 1938, w hen he w as nam ed assistan t m anager of th e savings departm ent. A captain in th e 135th In fa n try w hen P H IL IP H. CLARKE On Penn. R. R. Board At th e annual m eeting of the sh are holders of th e C ontinental Illinois N a tional B ank and T ru st Com pany of Chicago, L aw rence P. F ish er, vice presid en t of F ish er and Company, and a director of G eneral M otors C orpora tion, w as elected to succeed his b ro th er, C harles T. F isher. T hree addition al directors w ere elected: A rth u r S. B arrow s, presid en t of Sears, Roebuck and Company; C harles Y. Freem an, chairm an of th e board of directors of C om m onw ealth Edison Company, and R. L. W illiam s, presid en t of th e Chi cago and N orth W estern R ailw ay Sys tem . All directors now serving w ere re-elected. In th e com m ercial b anking d ep art m ent the follow ing a ssistan t cashiers w ere prom oted to the office of second Com pany, at a m eeting of th e board of directors held last m onth. T his is th e second tim e th a t a large eastern corporation has selected Mr. C larke w hen looking w est for an ap pointee to th e ir board. Mr. C larke has long been active in civic and ph ilan th ro p ic organizations of Chicago, having served as chairm an of th e citizens’ cam paign th a t raised $76,000,000 to carry Chicago th rough tax delinquencies in 1930, and in the sam e y ear directed th e first Chicago C om m unity F und. He served w ith conspicuous success in 1944 as ch air m an of the F ifth W ar Loan D rive for Chicago and Cook county. He also served as chairm an in a num ber of relief cam paigns. LT. COL. W IL L IA M H. W IL L IA M S Now an A ssista n t Cashier M innesota N ational G uard w as federal ized, W illiam s w en t w ith his regim ent to Camp Claiborne, Louisiana, for train in g . He w as advanced to th e ra n k of m ajor in June, 1941. A fter th ree m onths of staff w ork at F o rt Dix, he proceeded in A pril, 1942, to th e E u ro pean T h eater of O perations. Two m onths later he w as detached from his reg im en t to becom e a ssista n t post ex change officer for th e N o rth ern Irelan d Base Section and subseq u en tly served N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary 19^5 Foreign Trade Expert B ror W. Unge, in tern atio n ally know n as a foreign trad e expert, w ill be in charge of th e new ly created foreign tra d e d ep artm en t at th e City N ational B ank & T ru st Com pany of K ansas City, M issouri. Mr. U nge w ill have d irect su p erv i sion of all foreign trad e and relations of th e b an k and w ill handle all m oney and business exchanges th e b an k and its custom ers have w ith foreign m ar kets. Mr. Unge w as born in Stockholm, r f 1 W IL F R E D E. R E S S E G U IE E lected a Second V ice President vice p resident: Tilden Cum m ings, F rederic A. C urtis, R obert A. Daly, Osmond A. Jackson, P aul E. Miller, W ilfred E. R esseguie, and F red erick B. Stocker, Jr. Seven new assistan t cashiers w ere elected: Sidney A. B ar clay, E in a r N. E ngebretson, A rth u r B. H enderson, A rth u r J. H ercher, George F. K ernan, H arold L. K oetke and Louis H. Severin. W alter J. Blacklock, a ssistan t cash ier in th e foreign d ep artm ent, w as m ade a second vice president. OUR 50th YEAR > 21 T A h e N D P T R N u b l ic U S T C O M 3 7 B a t io n a l P A N Y B road O F N E W ank Y O R K S tre e t • C O NDENSED OF STATEM ENT C O N D IT IO N D ecem b er 3 1 , 1 9 4 4 RESOURCES Cash and D ue from B a n k s .............................................................. 1 . S. Government S e c u r i t i e s .............................................................. State and M unicipal S e c u r i t i e s ...................................................... Other S e c u r i t i e s ..................................................................................... Loans and D i s c o u n t s ...................................................................... Customers’ L iability for A c c e p t a n c e s ........................................ Stock of the Federal Reserve B a n k ............................................... Banking H o u s e s ..................................................................................... Other Real E s t a t e .............................................................................. Accrued Interest R e c e i v a b l e .............................................................. Other A s s e t s ............................................................................................. $ 75,955,664.66 257,941,963.78 4,093,843.73 2,756,766.07 96,041,907.73 1,095,754.41 480,000.00 1,981,646.44 45,143.66 948,360.03 267,792.79 $ 4 4 1 ,6 0 8 ,8 4 3 .2 9 LIABIL ITIES C a p i t a l ......................................................................$7,000,000.00 S u r p l u s ...................................................................... 9,000,000.00 U ndivided P r o f i t s .............................................. 4,508,039.51 D ividend Payable January 2, 1945 .............................................. Unearned D i s c o u n t ............................................................................. Reserved for Interest, Taxes, C o n t in g e n c ie s ............................... A c c e p t a n c e s ..............................................................$2,643,492.46 Less: Own in P o r t f o l i o ................................ 1,183,561.87 Other L i a b i l i t i e s ............................................................................. D eposits . .............................................................. $20,508,039.51 150,000.00 233,959.37 3,498,108.87 1,459,930.59 233,697.48 415,525,107.47 $ 4 4 1 ,6 0 8 ,8 4 3 .2 9 S e c u ritie s c a rrie d at $ 6 0 , 1 8 7 , 3 0 9 . 7 3 are p l e d g e d to secure U. S. Gove m i n e n t tf ar L oan D e p o s i t s o f $ 5 8 , 1 4 6 , 6 3 2 . 4 7 a n d o t h e r p u b l i c and t ru s t d e p o s its , a n d f o r o t h e r p u r p o s e s as r e q u i r e d o r p e r m i t t e d b y law. MEMBER: N. Y. CLEARING HOUSE ASSOCIATION • FEDERAL RESERVE SYSTEM FEDERAL DEPOSIT INSURANCE CORPORATION OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker February 19^5 Can Trustee and Beneficiary Be the Same? ILL, an Iow a b anker, signed a sim ple in stru m e n t, duly dated, as follows: “I hereb y convey at m y decease all of m y personal p ro p e rty to Jo h n A dam s.” The docu m en t w as not w itn essed as req u ired by th e sta tu te of w ills in ord er for it to be valid as a will. S ubsequently H ill died. W as Jo h n A dam s en titled to H ill’s personal property? H No. In a recent d ecision in vo lv in g analogous facts the Iow a Suprem e Court held that the in stru m en t in question con veyed no p resen t in terest in the d ecedent’s property but w as testam en tary in ch aracter and that, sin ce it w as testam entary in character but w as not duly w itn essed so as to be effective as a w ill, no property passed thereunder. A belson, a M innesota b anker, w as an a m ateu r radio en th u siast. He con stru c te d in th e backyard of his hom e an aerial w hich consisted of tw o th irty foot poles and w ires. A belson’s hom e w as located in an area zoned by ordi nance only for residences and uses custom arily incident th e re to not in volving th e conduct of a business. The radio w as not used for business p u r poses. The m unicipality sought to enjoin th e use and m ain ten an ce of th e aerial. Could it do so? No. In a recen t d ecision the M inne sota Suprem e Court, w ith tw o judges d issen tin g, held, in an an alogous case, that the aerial did n ot violate the zon ing ordinance. In so h olding the Court com m ented that the u se of radios in private h om es is as com m on as the use of refrigerators and stated that it w ould take judicial notice of the custom of h ouseholders to u se outside antennae or aerials for radio recep tion. Snow, a w ealth y ban k er, en tered into a w ritte n ag reem en t w ith a ch u rch in his hom e tow n w hich p ro vided th a t he w ould pay th e ch u rch $5,000 p er y ear for five y ears as a sub scrip tio n to a new building it w as con stru ctin g . On th e basis of Snow ’s agreem en t, and th e agreem ents of others, th e ch u rch erected th e build ing and in cu rred financial liability th erefo r. Snow m ade th e agreed p ay m en t one y ear and sought to avoid N orth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary 19^5 This and Other Timely Legal Questions Are Answered By the LEG A L DEPARTM ENT paying them for th e rem aining four years, assertin g th a t he w as not ob ligated to do so because th e agreem ent w as w ith o u t consideration. W as Snow liable for th e rem aining four pay m ents? Yes. T here is sufficient considera tion for a subscription w here the prom ise, on the faith thereof, ex pends m oney or incurs enforceable liab ility in the furtherance of the pro posed enterprise. T his ru lin g is sup ported by recen t decision s in W iscon sin, Illin ois, M issouri, K entucky and other states. prom ptly placed his in stru m e n t of record. Is H olbeck’s m ortgage ab solutely void insofar as Green is con cerned? Yes. In South D akota the failure to file a ch attel m ortgage does not render the m ortgage void as again st all credit ors of the m ortgagor. It is on ly in the case of a creditor w ho has extend ed credit w h ile a m ortgage is w ith h eld from record, w h ich w as the situ ation here, that it has been held that the m ortgage is ab solu tely void. O thm an, a N o rth D akota resident, ow ned a farm there. He executed and acknow ledged a deed to th e farm in favor of his daughter. T h ereafter he left the deed w ith th e presid en t of his bank, in stru ctin g him to deliver it to th e gran tee on his death. O thm an died and th e b an k er delivered th e deed. O thm an’s son asserted th a t no pro p e rty rig h ts passed th ereu n d er. Should such an assertion be sustained? A nderson died leaving a w ill w hich set up a tru s t of all of his property. The tru s t provided th a t his son should be th e tru ste e and th a t his son should be th e sole beneficiary. T here w ere no o th er heirs. W as a valid tru s t created? No. In a recent decision the N orth D akota Suprem e Court stated that it is w ell established there that w h ere a deed is d elivered to a third person to be delivered to the grantee on the death of the grantor, such d elivery d iv ests the grantor of title. No. The purported tru st in volved here lacked the fu n dam en tal essen tia l to the ex isten ce of any trust; n am ely, the separation of the legal estate from the beneficial en joym ent. There is no tru st w h ere both are in the sam e person. D ecision s su pp ortin g th is g en eral rule of law m ay be found in the U nited S tates Suprem e Court, A la bama, F lorida, Illin o is, Iow a, M inne sota, N ebraska, N orth Carolina, South D akota, W iscon sin and other juris dictions. A nd erson ’s son becam e the ow ner of the property free of the trust and the attem p t to create the trust failed. Johnson conveyed a N ebraska farm to Brow n and B row n im m ediately procured fire insurance on th e b u ild ings located thereon. A bout a m onth later Joh n so n w as declared incom pe te n t and a g u ardian w as appointed for him . The gu ard ian filed suit to set aside th e conveyance. S hortly th e re afte r a fire occurred w hich destroyed th e buildings. The suit w as n ever trie d and B row n subsequently recon veyed to Johnson. B row n sought to recover on th e in surance b u t th e in surance com pany took th e position th a t it w as not liable on the th eo ry th a t he w as not th e sole and uncondi tional ow ner as req u ired by th e policy. Can B row n recover? B lackburn borrow ed $1,000 from Hoibeck in South D akota and gave him a ch attel m ortgage on certain p e r sonal p ro p erty as security. Holbeck failed to file th e m ortgage of record. L a te r B lackburn borrow ed a sim ilar am o u nt from G reen and gave him a sim ilar m ortgage. G reen did not know of th e previous m ortgage and Yes. A person h avin g title to real estate not shared by an yone else and to w hich no condition is attached, even if the title is voidable, is the sole and unconditional ow ner w ith in the m ean in g of a fire insurance policy provid- (T u rn to page 24, please) OUR 50th YEAR 23 accounting jobs in my small bank! H ere is a machine that even the smaller hanks can keep busy every hour of the day. It is called the National Multiple Duty Accounting Machine. With the convenient removable form bar it can be changed from one job to another in a matter of thirty seconds and it handles seven basic banking jobs! See for yourself! 1. 2. 3. 4. 5. 6. 7. It posts depositors’ accounts It posts the loan and discount record It posts any type o f mortgage record It posts the trust ledger It writes and posts the payroll record It posts the general ledger It posts the daily statement o f business Check the list. Wouldn't this machine be a big help in your own bank? Of course this is but one of many National machines and systems designed to reduce errors and im prove efficiency of banking methods. National M ultiple D uty Accounting M achine. The only machine with all these features. Q @ © V isible lin e o f writing Standard fu ll keyboard (adding machine and standard typewriter combined) Com plete flexibility TH ERE’S A NATIONAL FOR EVERY BANK AND EVERY BANK ING JOB! Large bank...sm all bank...no matter the size or the specific need, there’s a National System to meet it. Why not have an experienced National representative make a comprehen sive study of your bank? No obligation, of course. Contact your nearest National office. National Accounting-Bookkeep ing Machines are available through priorities. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Q/ffiftenal CASH REGISTERS • AD DING MACHINES ACC O U N TIN G -B OO K K EE P IN G MACHINES THE N A T I O N A L C A S H R E G I S T E R CO M PA NY N orth w e stern Banker F ebru ary 1945 24 T T H E a n n u al m eeting of th e stockholders of T he F irs t N at ional B ank of Chicago, all d irec to rs w ere re-elected except C harles A. McCulloch, w ho asked not to be re elected as he desires to spend m ost of his tim e outside th e city and conse qu en tly w ould not be able to atten d board m eetings regularly. Irv in L. P o rter, a vice p resid en t of th e bank, w as elected a directo r in Mr. McCul loch’s place. A A t th e organization m eeting of th e directors, th e by-laws w ere am ended to provide for a ch airm an of th e board, w ho w ill be th e chief executive officer of th e bank, and a vice ch airm an of th e board. E d w ard E. Brow n, p resi dent of th e b ank since 1934, w as elect ed ch airm an of th e board. Jam es B. F o rg an w as elected vice chairm an, and B entley G. McCloud, president. The JA M ES B. FO R G A N V ice Chairman https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis at First National Bank, Chicago E D W A R D E. B R O W N Chairman of the Board B E N T L E Y M. M cC L O U D President la tte r tw o have been vice presid en ts of th e b ank for m an y years. H om er J. L ivingston, w ho has been a counsel of th e bank, w as elected vice president, and m oves from th e law d ep artm en t to th e ban k in g d e p a rt m ent. In addition, R aym ond H. Beck er, Clarence W. W eldon, Wm. W. O’Brien, and R obert G. Collins w ere prom oted from assista n t vice p resi d ents to vice p residents. M essrs. B ecker and W eldon are in th e com m er cial d epartm ent; O’B rien and Collins are in th e tr u s t d ep artm en t. E lm er E. Schm us, a vice president, w as elected vice p resid en t and cashier, to fill th e vacancy in th e cashiersh ip caused by th e d eath of E m il A. Stake in Decem ber. O ther prom otions were: Leslie H. D reyer and N orm an G. Stockdale from a ssista n t cashiers to a ssista n t vice N o rth w e ster n Banker Official Changes F ebru ary 19b5 E L M E R C. SC H M U S V ice President and Cashier p residents, Jo h n H. W eedon from as sista n t secretary to assistan t vice pres id en t in the tru s t departm ent. N ew officers elected were: C harles E. B randriff, a ssistan t tru s t officer; E d w ard W. B urkhill, a ssistan t a tto r ney; W alter F. Clow, a ssistan t m ana ger, real estate departm ent; K enneth G. M orton, a ssistan t secretary; Otto W. Foell, A rth u r F. F ritz, H erb ert G. H edin, and P aul E. N ordstrom , assist a n t cashiers. L E G A L Q U EST IO N S (C ontinued from page 22) in g that the insured m ust be such an ow n er in order to recover on the pol icy. The N ebraska Suprem e Court so held in a recent decision. T here are also W isconsin and federal d ecision s su pp ortin g th is ruling. I. L. PO R T E R D irector T ru st com panies acting as tru ste e s u n d er w ills often do so in circum stances w here co-trustees are involved. W hen such is th e case and a co-trustee fails to qualify, resigns or dies, is it possible, assum ing no reason to th e c o n trary exists, to have a successor for such co-trustee appointed by th e courts? Yes. In the absence of restrictions placed upon it, eith er by w ill or by statute, a court is g en erally considered as em pow ered, w here, in its judgm ent, it w ill he conducive to th e proper fu n ction in g of a testam entary tru st, or in accordance w ith the testa to r’s in ten tion, to appoint a co-trustee to act w ith su ch tru stees as h ave been q uali fied, in the place of one w ho failed to qualify or has resign ed or died. D e cision s su pp ortin g th is general rule OUR 50th YEAR 25 / W /b *f rmPAioNmoi/ß omn/u£/stvAY ovronm / what's wrong? ï (* >A/VSW£R THe J VÊ /s- 4 m H£APACH£ I Ctf£CKS Send for this “headache check" cure. . . Are badly designed “special checks” responsible for much of your overtime problem? Then we suggest that you send for Hammer mill’s new idea-book, “Business Checks.” It illustrates 15 common faults in check arrangement, and gives the 8 essentials of good check design—all suggested by bankers and conforming to A.B.A. recommendations. M c o r t e x «AA*««*«*A«« Try presenting copies of this little book to your important customers who design their own checks. You’ll find it a tactful and effective way to persuade them to plan their checks properly. Just mail the coupon. No obligation. No salesman will call. E v e n t h e b e s t - d e s i g n e d b a n k a n d b u s i n e s s c h e c k s g iv e g r e a t e r s a t i s T fa c t io n o n th e s a fe ty p a p e r t h a t r e a lly p r o t e c t s — H a m m e r m ill S a fe ty . Safety Paper D ivision H ammermill Paper Co., Erie, Pa. P lease send m e - f r e e - a copy of “B U S IN E S S r c i i MANUFACTURED OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BY H A M M E R M I L L C H E C K S.” ■'osition. Name. (Sim ply attach coupon to, or PAPER COMPANY, write on, your b a n k letterhead) ERIE, P A. , FOUNDED Northwestern Banker NWB-f £ 1898 February 19^5 26 m ay be found in M innesota, Illinois, Georgia, Ohio, and other states. Quite often a p ro p erty ow ner or his agent is confronted w ith th e necessity of notifying a re n te r th a t his tenancy m u st be term inated. W here, in such situations, it is necessary to designate a term in atio n date in th e notice, should th e first day or last day of th e re n ta l period be used? The A rkansas Suprem e Court has recen tly said th at w h en ev er it is n eces sary to set forth in a n otice term in at in g a ten an cy the exact day on w hich p ossession w ill he yielded or is re quired, the day so design ated m ay properly correspond w ith eith er the first day or last day of the rental period, and w here eith er such day is so designated, it shall he deem ed to he a notice ending w ith the rental period. T his is also the rule in a m ajority of other jurisdictions. M axw ell ow ned ce rta in stock in a holding com pany. The principal busi ness of th e holding com pany was, in tu rn , to hold corporate stock of th e sta tu to ry liability class; th a t is, stock w here th e stockholders m ig h t be liable for assessm ents. T he holding com pany w as w ith o u t capital or oth er su b stan tial assets to respond to any sta tu to ry liability. In such circum stances, could Maxwell, generally speaking, be held on a stockholders’ liability claim even though his hold ings w ere not directly in th e corpora tion w hose stockholders w ere as sessed? Yes. G enerally speaking, it m ay he regarded as settled that w h en ev er the principal b u sin ess of a corporation is to hold corporate stock of the statu tory liab ility class, and it is w ithou t capital or other su bstan tial a ssets to respond to the statu tory liab ility, the fiction of the h olding corporation should he disregarded and its stock holders held in d ividu ally liable in pro portion to the stock ow ned by them as the true and beneficial ow ners of the stock su bject to statu tory liability. Supporting th is rule are decision s in the U nited States Suprem e Court and other F ederal Courts, as w ell as in Illinois, K entucky, South Carolina and V erm ont. That Explains It The hard-w orking gift-shop clerk had vainly ransacked th e w hole of his shop in his efforts to please an old lady w ho w anted to purchase a p resen t for h e r g randdaughter. F o r the fifteenth tim e she picked up and critically ex am ined a n eat little satchel. “Are you quite sure th a t this is gen uine alligator skin?” she inquired. “Positive, m adam ,” quoth th e dealer. “I shot th a t alligator m yself.” “It looks ra th e r soiled,” said th e lady. “That, m adam , is w here it stru ck th e ground w hen it fell off th e tree.” “H ave I tim e to say goodbye to m y wife before th e tra in leaves?” “T h at depends on how long y o u ’ve been m arried .” Officers and Directors Renamed All directors of B ank of A m erica w ere re-elected at th e an n u al m eeting of shareholders. At th e organization m eeting of th e directo rs w hich fol lowed, all officers of the b an k w ere re nam ed to th e ir positions. In his m essage to the shareholders, P resid en t L. M. G iannini said: “Our grow th d u rin g th e p ast year, as in 1943 and 1942, m ay be traced sub stan tially to w ar activity, b u t th is cir cum stance in no w ay dim s th e fact th a t over the full span of our first 40 y ears th e m ain force in o ur grow th and developm ent has been th e p atronage of th e sm all custom er. As 1944 w as n earin g its close our b an k h ad 3,000,- N O W W E CAN F U R N IS H NEW BANK VAULT DOORS and NEW SAFE DEPOSIT BOXES WE HAVE A REPRESENTATIVE NEAR YOU O ur engineering service is available. M ay we h e lp you w ith y o u r rem odeling or expansion p lan s? No obligation. H E R R I N G - H A L L - M A R V I N SAFE C O M PA N Y MAIN OFFICE AND FACTORY — HAMILTON, OHIO BRANCHES: NEW YORK — CHICAGO — WASHINGTON M a nu f a c t u r e r s o f N ight D epositories. T ellers’ Lockers. Steel Counters. Steel Transfer Cases. Burglary-Resistive Chests. “Point of U se” System Safes. Personal Safes. Steel Files. W e also have u sed B an k V a u lt D oors, Steel V a u lt L in in g s, G rilles, N ig h t D ep o sito ries, E tc. N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary 19'r5 OUR 50th YEAR 27 H A LF - W A Y I, t would take a lot of checks, placed end to end, to extend halfway around the world at our latitude—a distance of 10,155 miles. But our Transit Department, working with maximum speed and efficiency in its daily transactions, handles this great volum e of business in an avera g e year. Because of what our correspondents say of our methods of operation, we feel that the m iles of checks handled by our Transit Department are also m ilestones of ach ievem en t for The Philadelphia National Bank. W e will always be glad to discuss possible corre spondent relationships, and will do so informally if you prefer. THE PHILADELPHIA NATIONAL BANK 0/c/esC an*/ S/ynyfiC & a n / in PHILADELPHIA M E M B E R OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F E D E R A L 1, PA. D E P O S I T ★ 0emnAy/iMin(a ORGANIZED I N S U R A N C E 1803 C O R P O R A T I O N N orth w e stern Banker F ebru ary 19 45 28 366 deposit accounts and ap p ro x im ate ly 430,000' loans on its books.” G iannini stated th a t d u rin g 1944 con siderably increased em phasis w a s placed on the degree of liquidity and m ark etab ility of th e in v estm en t p o rt folio. G overnm ent issues due or call able in less th a n one y ear co n stitu ted 64 p er cent of th e b a n k ’s govern m en t portfolio a t th e end of 1944, in com pari son w ith 43 p e r cen t at th e close of 1943, 36 p er cent at th e end of 1942, and 13 p er cent at D ecem ber 31, 1941. Two Vice Presidents E dw in A. H en ry and W illiam T. I. Hall, heretofore a ssista n t cashiers of The P hiladelphia N ational Bank, have been elected vice presidents. G. E dw ard Cooper, w ho has been associated w ith the b ank and b ankers division for several years, has been appointed an a ssistan t cashier. m erit’s business in th e w estern and m id-w estern states and in th e public u tilities field. Mr. K leitz joined th e bond d e p a rt m en t of th e G u aranty in M arch, 1919, and becam e an officer of the com pany on Ju n e 14 of th e follow ing year, Kleitz Promoted E ugene W. Stetson, ch airm an of the board of th e G u aran ty T ru st Company of New York, announces th a t a t the a n n u al m eeting of th e board of di recto rs W illiam L. Kleitz, vice p resi dent, w as prom oted to become associ ated w ith th e general m anagem ent of th e bank. He w as form erly identified p rincipally w ith the banking depart- W IL L IA M L. K L E IT Z R eceives Prom otion OF VITAL IMPORTAMCE A M E R IC A and her allies have entered another year w hen “all 1 1 out” war production is o f vital im portance. In fact, in som e categories, production m ust be accelerated to replace the vast am ount o f war material destroyed in crucial battles and in exten sive invasion operations. T he Am erican N ation al has had a broad and varied experience in aiding in the financing o f customers engaged in war production. T he k n ow led ge gained is available to correspondent banks w hose custom ers have similar problem s; togeth er w ith our cooperation, if desired, in m eeting the financial requirements o f such local custom ers. T his feature o f our service may also be o f value to you. AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO LA S A L L E S T R E E ' Member Federal Deposit " O U R B U S I N E S S N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I S F ebru ary 1945 f- Insurance Corporation H E L P Announces Changes At a m eeting of th e board of di rectors of B ankers T ru st Company, New York, th e follow ing changes in official staff w ere made: J. S. T aber w as elected vice p resi dent; H. H. R ipley and L. B. Thom as, form erly assista n t vice presidents, w ere elected vice presidents; C. B or m an, form erly a ssistan t vice president, w as elected dep u ty com ptroller; F. A. Auer, A lbert M uller and J. F. R ath, form erly a ssistan t tre a su re rs, w ere elected a ssistan t vice presidents; H. C. B urrow es, form erly an a ssistan t tru s t officer, w as elected tru s t officer, and George Suppes w as elected a ssistan t treasu rer. Promotions AT W A S H I N G T O N T O th ro u g h his ap p ointm ent as a ssistan t treasu rer. He w as m ade an assistan t vice presid en t on A pril 30, 1923, in w hich capacity he served u n til his ap p o intm ent as vice p resident on No vem ber 13, 1928. B U S I N E S S The M ercantile-Com m erce B ank and T ru st Company, St. Louis, has an nounced th e follow ing prom otions am ong th e staff of th e in stitu tio n : F ra n k J. Sain, a ssistan t vice p resid en t since he joined th e b ank in 1942, w as OUR 50th YEAR 29 "Experience is the great baffler of speculation". . . Proverb . . . fo r m o r e th a n 3 0 y e a r s L a w r e n c e S y s te m h a s s u p e r v is e d in v e n to r y lo a n s th r o u g h f ie ld w a r e h o u s e r e c e ip ts THROUGH TWO WORLD WARS, through by his bank loan officer suggesting an in prosp erity and d ep ression — Lawrence ventory loan backed by Lawrence System W arehouse C om pany has su ccessfu lly field warehouse receipts. Through Law handled inventory loans. Banks and other rence System ’s m ethod of field warehous lending agencies throughout the country in g yo u r c u sto m e r ’s raw m a te r ia ls or value the Lawrence System service and finished products can be used as sound are d evelop in g in crea sin g ly profitable collateral and still remain right on the com m odity loan departments. borrower’s prem ises, available for mar keting or processing. In this difficult period o f financial ad justm ents the Lawrence W arehouse Com The Lawrence W arehouse Company has p a n y o ffe r s b a n k s th e s e r v ic e s o f its pioneered and developed the handling highly sk illed p erson n el—either to help and operating details o f field warehous establish a com m odity loan department ing. W hen you need any inform ation or or work out any specific problem . Many service write or phone your nearest Law a hard-pressed business man can be aided rence office. Service from coast to coast. LAWRENCE WAREHOUSE COMPANY Jield Warehousing FOR BANK LOAN S A G A IN ST IN V EN TO R Y New York: 72 W all Street . Chicago: 1 N. La Salle Street • San Francisco: 37 Drumm Street • Los Angeles: W . P. Story Building • Buffalo • Atlanta • Cincinnati • Boston . Philadelphia . Kansas City . St. Louis New Orleans • Jacksonville, Florida • Dallas • Houston . Denver . Fresno . Portland, Oregon OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o rth w e ster n Banker F ebru ary Î9 4.5 30 elected vice president. W. J. C hap m an, w ho has been m an ag er of th e cred it d ep artm en t, w as m ade assistan t cashier. L eighton E. D onahue w as prom oted from a ssista n t m anager to m anager of th e savings d ep artm en t, and W. F. A h lert w as m ade assistan t m anager. Prom otions announced at th e M er cantile-Com m erce N ational B ank in St. Louis include th e election of Adolf B. H an ser to th e position of vice p resi dent, and F ra n k B. M erget, cashier. H an ser w as form erly cashier of th e w est end b ank and M erget, a ssista n t cashier. Mrs. Robt. Goethe Dies Gene Ju el Goethe, w ife of R obert L. Goethe, presid en t of T he C harles E. W alters Company, Omaha, N ebraska, b an k stock broker, w idely know n am ong b an k ers of th e m iddle w est, passed aw ay at an Om aha hospital last m onth, after an illness of several m onths. B efore h er m arriage to Mr. Goethe, Mrs. Goethe w as secretary to th e late Jo h n H am m il, form er governor of Iowa. In addition to h e r husband, she is survived by a sister, Mrs. L aura Porden of P ortland, Oregon; a b ro th er, H a rry Juel, of P ark ersb u rg ; two daughters, Miss M arlys G oethe an d Mrs. A ustin G arrels, both of Om aha, and a grandson, A ustin G arrels, Jr., also of Omaha. New Officers Am ong prom otions and election of new officers at th e recen t an n u al m eet ing of the A m erican N ational B ank & T ru st Company, Chicago, E d m und L. A ndrew s w as advanced from assista n t secretary to assistan t vice president; E v e re tt C. Dovale w as elected a ssistan t secretary, and H ow ard J. Johnson, a ssistan t tru s t officer. All th re e of these m en are on the staff of th e b a n k ’s tru s t departm ent. Mr. A ndrew s is a grad u ate of Chicago K ent College of Law and Mr. Johnson of D ePaul U ni versity Law School. Both are mem- 80 Years’ Experience in the M arketing of G overnm ent Issues This bank is connected by direct wire with the principal trading centers in government securi ties. This and other facilities enable The First N ational to achieve prompt contact with buyers and sellers. H ence, the Bond Department can give current quotations and complete trades promptly and efficiently. Experience of 80 years in buying and selling government issues enables The First National Bank to render service of exceptional value to correspondent banks. Inquiries by telephone, wire or mail are invited. Telephone Franklin 6800 (Long Distance 9 2 -9 3 -3 1 3 ). Teletype CG. 987. The First N ation al B an k o f Chicago B uilding W ith C hicago a n d the N a tio n Since 1863 N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary 1945 E D M U N D L. A N D R E W S N ow A ssistan t V ice President bers Mr. the p ast of th e Chicago B ar A ssociation. Dovale has been associated w ith corporate tru s t division for the ten years. Officers Advanced A rth u r S. M uller, tru s t officer in charge of th e corporate tru s t d e p a rt m ent of T he Com m ercial N ational B ank and T ru st Com pany of N ew York» has been elected vice p resid en t and tru s t officer of the bank, and Mr. C harles K raem er, Jr., a ssistan t tr u s t officer, has been elected tru s t officer, W alter G. Kim ball, presid en t of th e bank, has announced. A Real Buddy Voice on th e phone: “Jo h n Sm ith is sick th is m orning and w on’t be able to a tten d class.” O.D.: “All right. W ho is th is speak ing?” Voice: “T his is m y room m ate.” OUR 50th YEAR 31 Government Securities— How M any and What Kind? With Deposits High, and Demand tor Loans Low, the Most Important Thing the Banker Does Is to Invest His Funds in Government Bonds N T IL th e p ast few y ears banks derived by fa r th e m ajor po rtio n of th e ir incom e from loans. R a tio of loans to deposits w as such th a t p ractically all available funds could be loaned ad vantageously d u rin g some tim e of th e year. In te re s t ra te s on loans w ere sufficiently h igh to w a rra n t holding excess funds in cash u n til a satisfacto ry loan could be had to em ploy them . Today both loan volum e an d in te re s t ra te s are at an all-tim e low. A t th e sam e tim e, deposits are at an all-tim e high. R atio of loans to deposits is below 1 to 10 in m any banks. Service charges of all kinds have been in au g u rated , w ith th e re su lt th a t m ost of th e d e p a rtm e n ts of th e b an k are . now self-sustaining and do not have to rely upon th e note d ep artm en t for th e ir support. A dditional incom e has been b ro u g h t into being th ro u g h in v estm en ts o th e r th a n loans. The re su lt has been th a t incom e of b an k s has held re m a rk a b ly w ell in spite of de cline in loan volum e. M any are expe rien cin g th e ir m ost stable and sa tis facto ry earn in g s in years. T h ere are som e exceptions, b u t th is is tru e of th e v a st m ajo rity of banks, both large and sm all. T he p rin cip al item c o n trib u tin g to th is condition is incom e from gov ern m e n t bonds. Today w ith deposits at an all tim e high, and w ith th e dem and for loans a t a low ebb, probably th e m ost im p o rta n t th in g th a t th e b a n k e r does is to in v est his funds in th ese bonds. T hey re p re se n t th e larg est sin gle item in the assets of practically every b an k in th e nation. Since th is o p eratio n has becom e such an im p o r ta n t one and since it involves such a large p ercentage of th e b a n k ’s depos its, it is essential th a t it be carried o u t carefully and in tellig en tly for safe ty ’s sake and th a t it be carried out in ten siv ely for e a rn in g ’s sake. U Three Kinds of Money In p lan n in g his gov ern m en t bond in v e stm e n t account, th e b a n k e r m u st operate on th e assum ption th a t our g o v ern m en t issues tw o kinds of OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By A . J . Martin President First National Bank Houston, Texas money, one th e cu rren cy we carry, w hich is dem and, non-interest b earin g m oney; th e o th er th e governm ent bond, w hich is tim e, interest-bearing m oney, both having equal standing in sofar as safety is concerned. T his is tru e literally since F ed eral R eserve B ank notes can be issued at 100 cents on th e dollar against any and all gov e rn m en t bonds w ith o u t gold or o ther collateral m argin. A ctually, how ever, th e re is a th ird k ind of m oney w hich has th e p ro p er ties of both of th e others. T his is re p resen ted by th e T reasu ry Bill. In th e sense th a t it bears in te re st and has a definite m atu rity , it is tim e money. On the o th er hand, it is so highly liquid (being salable on a m om ent’s notice at no m ark et risk) th a t it is practically th e sam e as cash. Some of th e larger b anks buy and sell these alm ost daily as th e ir reserv e position dictates. Study Your Deposits In building his bond account th e b a n k e r’s only problem lies in p ro perly selecting tim e m oney so th a t it w ill be dem and m oney w hen needed. N ever should he be in th e position of having to sell tim e m oney in order to convert to dem and m oney, p a rticu larly long te rm tim e money. P ro p er selection of m atu rities is, of course, th e answ er and in d eterm ining w h a t his govern m ent bond account is to be, th e m atu rities m u st be his only consideration. The yields m ust not en ter into th e pic tu re. T he answ er to th e question, “ How m any bonds can I buy?” w ill v a ry a g reat deal in different banks. A b an k located in a w ar area has an e n tirely different problem from an o th er w hich is located in a farm ing section far rem oved from arm y bases and w ar activity centers. H ow ever, each b an k er can no doubt size up his own situ atio n w ith reasonable accur acy. To do th is he w ill first need to stu d y his deposits. How m uch have th ey grow n? Is th ere reason to antici pate sh arp w ith d raw als w hen w ar ac tivities cease? W h at large accounts does he have and w h at w ill become of them at w a r’s end? Is th ere any re a son to anticipate a heavy shift of pop ulation aw ay from his area? In other w ords, how m u c h so-called “hot m oney” does he have in his deposit accounts? These are all questions to be answ ered after careful study. These answ ers w ill tell him th e m inim um am ount of cash w ith w hich he can operate and also the am ount he has available for in v estm en t in govern m ent issues. In th e average case, he w ill probably find th a t 25 to 35 p er cent of his assets should be k ep t in cash (national average is 22 p er cent) and th a t from 50 to 65 per cent can be invested in governm ent bonds (nation al average is 55 p er cent). T his an sw er hav in g been found, th e n ex t ques tion is “How are m atu rities to be dis trib u te d ? ” T his likew ise w ill gener- 1— A nalyze your deposit picture to the best of your ability, particularly your large accounts— then allow for a fa ir margin of error. 2— Set up a formula fo r investment and stick to it so long as it appears a proper one— change when it doesn t. 3— G iv e your G overnm ent bond account the time and study its im portance deserves. Northwestern Banker February 19^5 32 ally depend upon location, p otential sh rin k ag e in deposits, etc. Today th e average m atu rities of g o vernm ent bonds of b anks over th e n atio n are about as follows: Due w ith in one year, 39 p er cent; due in one th ro u g h five years, 26 p er cent; due in five th ro u g h ten years, 29 p er cent; due in over te n years, 6 p er cent. Please rem em ber th a t th e 39 p er cent due w ith in one y ear includes T re a su ry bills, w hereas we are ex cluding th em from our p e rm a n e n t bond account in th is discussion. My own recom m endations for an average b an k w ould be approxim ately as fol lows: Due w ith in one year, 35 per cent; due in one th ro u g h five years, 35 per cent; due in five th ro u g h ten years, 30 per cent, provided th a t such inv estm en t in five th ro u g h ten-year m atu rities does not total m ore th a n 200 per cent of the unim paired capital stru c tu re of the bank. By average ban k is m ean t one w ith only average deposit increase w ith no g reat num ber of large, volatile accounts and w ith no g reat anticipated population decline. F o r a ban k in a w ar activity center or one w hich for any o ther reason m ight anticipate g re a ter deposit instability, these p e r Consider this Short Term INVESTMENT OPPORTUNITY C o n s o l id a t e d D ebentures of the Federal intermediate credit banks afford a desirable medium for temporary employ ment of surplus cash balances. Offered for subscription at regular intervals, they are issued in denominations ranging from $ 5 ,0 0 0 to $ 1 0 0 ,0 0 0 , with maturities of six to twelve months. Eligible as security for various fiduciary, trust and public funds, such debentures are authorized under the Federal Farm Loan Act, as amended. They are exempt from state, municipal and local taxes, also being legal investment generally for insurance companies, savings banks and similar institutional purchasers. ☆ ☆ ☆ These obligations are obtainable through recognized, dealers and dealer banks. Inquiries may be addressed to CHARLES R. DUNN, Fiscal Agent 31 N a ssa u S treet N ew Y ork 5, N . Y. THE FEDERAL INTERMEDIATE CREDIT BANKS SPRINGFIELD, MASS. LOUISVILLE, KY. ST. PAUL, MINN. HOUSTON, TEX. BALTIMORE, MD. NEW ORLEANS, LA. OMAHA, NEB. BERKELEY, CAL. COLUMBIA, S. C. ST. LOUIS, MO. WICHITA, KAN. SPOKANE, W ASH. N o rth w e ster n Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F ebru ary 19b5 centages probably w ould lean still far th e r tow ard th e m ore liquid and th e m ore conservative—say 40, 40 and 20, or some o ther such figure. T here is a reason for speaking in term s of p e r centages. As th e m onths pass and th e one-year in v estm en ts m ature, th e twoyear in v estm ents become one year, th e six-year become five, etc., w ith o u t a form ula to build to, th e re is som etim es doubt as to w h a t m a tu rity is needed. H ow ever, if a form is followed th e re is nev er any question a t an y given tim e as to w h at m a tu rity is needed to ro u n d out th e program in full. T he norm al reaction is to replace a m a tu r ing one-year certificate w ith an o th e r of like kind, w hereas it m ay be th a t a longer te rm bond is w h at is needed to fill out th e account. A definite for m ula w ill show this. W e shall consider only th e % p er cent certificates for our m atu rities w ith in one year. Certificates can now be obtained to m atu re at m ost any de sired tim e. Some ban k ers like to have some of th ese m atu rin g alm ost every th irty days. H ow ever, a selection w hich provides for th e m a tu rity of ap proxim ately one-fourth of th e certifi cate holdings each 90 days gives ade quate liquidity and involves less book w ork th a n is called for w hen m a tu ri ties come up at closer intervals. Ma tu rin g as th ey do a t v ery close periods, these certificates offer our “fro n t line” for converting tim e m oney into de m and if th a t need arises. In the tw o to five-year category, it is possible to obtain T reasu ry notes m atu rin g in any of th e periods desired. Also, some of th e T reasu ry Bonds can be had for these years. A fairly even d istribution over th e four-year period is desirable. In th e six to ten-year category a large selection of bonds can be had. H ere again it is felt th a t ra th e r even d istrib u tio n of m atu rities is to be sought a fter and heavy concentration in any one issue avoided. It is now obvious th a t th e account w ill have to be given considerable a t tention. In m ost instances th is ex tra stu d y and atten tio n w ill pay handsom e dividends in th e form of increased earnings as w ell as in th e know ledge th a t th e account is being handled in an orderly and safe m anner. W ith th e program w hich has been m entioned, it is obvious th a t the b an k er w ill w an t to “take an o th er look” each 90 days because it is at those in terv als th a t he w ill have a block of certificates m a tu r ing. At those periods he w ill w an t to take stock—“How are deposits hold ing?” “W hat is th e outlook for th e nex t 90 days?” “Shall w e hold our dem and m oney or shall we re-invest?” If the latter, “W hat shall w e buy?” T his is OUR 50th YEAR 33 w h ere our set form ula comes in. It w ill tell us quite accu rately and quick ly ju s t w h at m a tu rity is needed. Is the Plan Safe? T he question m ight w ell be asked, “How do we know th a t th e plan sug gested is a safe one?” F o r th e answ er, let us go back to a sta te m e n t m ade a m om ent ago as to average bond hold ings of th e b an k s of th e nation. This factor alone m akes th e pro g ram a safe one. W ith such a large p ercentage of th e to tal deposits of th e n atio n in vested in a given program , th a t p ro gram m u st be m ade and k e p t safe re gardless of th e m easures w hich m ight have to be tak en to keep it so. I t is generally conceded th a t th e re are suffi cient controls over th e g o vernm ent bond m ark et to m ake it perfo rm ac cording to any desired p a tte rn . Those w ho hold th e rein s on these controls leave no doubt as to th e ir in ten tio n s in th is connection. W e have ev ery as suran ce th a t in te re st ra te s w ill rem ain low. T hey m u st do so for som e tim e to come. T his being tru e, it is reaso n able to assum e th a t th e m a rk e t for low yield g o v ern m en t bonds w ill re m ain stable and it is anticip ated th a t th is w ill be th e case. H ow ever, our pro g ram still is based upon th e p rin c i ple th a t we do n o t w ish to be placed in th e position of h av in g to sell bonds on th e m a rk e t before m atu rity . Such a policy not only assu res our safety, b u t also aids in keeping th e m ark et stable th ro u g h th e elim ination of forced sales. W e m ade th e sta te m e n t th a t th e b an k er w ill w a n t to analyze his de posits as accu rately as possible. T his analysis m u st necessarily be largely an estim ate and m u st be based upon the b a n k e r’s know ledge of his custom ers and his com m unity. B alances c a r ried by a custom er before th e w ar are not any real indication of w h at his bal ance w ill be afterw ard . M any b u si nesses have atta in e d financial inde pendence in recen t years. Some of these w ere of nom inal w o rth and even poor cred it before th e w ar. H ow ever, ou r analysis is concerned largely w ith th e question of w h e th e r deposits w ill sh ift from our com m unity to another. If we are in a favorable position in this resp ect we have little to fear, be cause deposits as a w hole m u st rem ain high. It is a w ell-know n fact th a t loans create deposits and, on th e con tra ry th a t liquidation of loans reduces deposits. T h ro u g h its billions of dol lars of loans, o u r govern m en t has cre ated trem en d o u s deposits d u rin g th is w ar. The proceeds of th ese loans have been sp en t and are now in th e hands of individuals and corporations. More is yet to come. No m a tte r how m any tim es th is m oney is respent, it OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis still w ill rem ain in banks. The p rin cipal th in g w hich w ill decrease depos its w ill be a balanced budget w hich provides some m oney for debt re tire m ent. E ven our m ost optim istic econ om ists and financiers do not expect th is goal to be attain ed in th e near fu tu re. W hen it does come about, th e re tire m e n t of principal probably will not be at a ra te of m ore th a n 1 per cent p er year. Therefore, an y decline in deposit volum e th ro u g h th is source m u st necessarily be v ery gradual. The o ther principal factor w hich m ight cause deposits to sh rin k would be large shipm ents of m oney abroad th e valu e of for investm ent. It is n ot anticipated th a t th is m ovem ent w ill be in notice able volum e. Deposits Will Go Higher Offsetting these tw o m ore or less re m ote factors, w hich m ight cause de posits to decline, is an o th er m ore im m in en t one w hich w ould cause th e ir fu rth e r increase. T his lies in th e large total of W ar Bonds in th e hands of individuals and corporations w hich can be cashed at any tim e. B anks w ill no doubt absorb m ost of those sold. D eposits will, therefore, increase ac cordingly. T hey w ill be subject to some shifting, of course, and to some Experience IN M O VIN G LA R G E BLO CKS OF SECURITIES ^T^HE successful disposal o f blocks of securities usually requires extensive facili ties p h is the valuable quality of experience. We have been closely associated with sec ondary distributions for many years and with special offerings since their inception. This provides us with that invaluable sense of tim in g and "kn ow h ow " that are o f definite advantage in disposing of blocks o f securities of all types and sizes. W hether you have occasion now to seek such services for institutions, estates or large private investors, or expect to require them in the future, one of our executives specializing in such distributions w ould be glad to under take to assist you. Related consultations are, o f course, strictly confidential. M e r r il l L yn ch , P ie r c e , F en n er & B ea n e Underwriters and D istributors of Investm ent Securities Brokers in Securities and Commodities 70 PINE STREET NEW YORK 5, N. Y. Offices in 87 Cities Northwestern Banker February 19k5 34 relativ ely nom inal fluctuations. As a whole, how ever, it is obvious th a t large deposit totals w ill be w ith us for some tim e to come. So th e an sw er to th e question, “How m any and w h at k in d ?” resolves itself into a w ell defined procedure. F irst. A nalyze y o u r deposit p ictu re to th e best of y o u r ability, p articu larly T he Chase N ational B ank announced th e follow ing prom otions in the official staff of th e bank: As vice presidents: W alter E. Den nis, H en ry J. M acTavish, H arold F. Moeller, Leslie W. Snow and Joseph D. W hittem ore. As second vice presidents: George W. Allen, Jo h n I. Brooks, Jr., R obert L. Cudd, Jo h n C. Holt, J. F ra n k Honold, W oodruff Johnson, J. E v e re tt K unzm ann, W illiam Lange, Jr., F ra n k N. Powelson, W illiam A. Rawson, Jam es J. Rogers, A ndrew S. Ross, A lfredo N. Ruz, L ester E. States, Low ell E. U llery and C ornelius Van Zw art. STOCKS • BONDS COMMODITIES 216-218 Empire Bldg. D E S M O IN E S Phone 4-2127 11 W a ll S t r e e t , N e w Y o r k 231 S. L a S a lle S t., C h ic a g o B r a n c h e s in 34 C it ie s W rite fo r our w eekly S tock Survey W IR E Laverne M. Barlow M anager M em bers N ew Y o rk S to ck E x c h a n g e a n d o t h e r p r in c ip a l e x c h a n g e s New Board Member A t th e ann u al m eeting of th e stock holders of th e City N ational B ank and Have ALL the facts, without cost, about your Federally Insured Savings & Loan Associations which issue FEDERALLY INSURED CERTIFICATES There is NEVER a fee of any kind and NEVER a brokerage to be paid by an Investor! You will obtain: (a) Financial Statements; (b) OPERATING STATEMENTS; (c) ANALYSES OF LOAN PORT FOLIOS; (d) HISTORY AND DIVIDEND RECORDS; (e) Essential Service; (f) A CONTINUING SERVICE. We offer approxim ately 400 A ssociations. Some are paying 3V2% , while others a re on a 3 % basis. you W ill E n jo y : (1 ) (2 ) (3) (4 ) Unquestioned S a fe ty of P rin cip al; C a sh Position; Com plete Freedom from M arket Losses; Income yield to 3V2% . May we send you an O F F ER IN G of a group of S E L E C T E D A sso cia tio n s? A LLISO N W A U G H Financial Development Company ( N O T INCORPORATED) 105 South L a S a lle S tre e t Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T ru st Com pany of Chicago, E lm er T. Stevens, president, Chas. A. Stevens & Company, retail store, w as elected to th e board, to gether w ith all o th er di rectors. Mr. Stevens, in addition to being one of Chicago’s ou tstan d in g S tate S treet m erch an ts and civic leaders, is directo r of W ilson & Company, p resid en t of the C om m unity and W ar F u n d of Met- Chase Promotions THOMSON & McK i n n o n D IR E C T P R IV A T E y o u r large accounts. T hen allow a fair m argin for error. Second. Set up a form ula for in v est m ent and stick to it as long as it ap pears a p roper one—change it w hen it doesn’t. T hird. Give th e governm ent bond account the tim e and stu d y th a t its im portance deserves. If these things are done conscien tiously, it is believed th a t full benefit w ill be realized at m inim um risk. February 19^5 C h icag o 3, Illinois E L M E R T. S T E V E N S On Bank Board ropolitan Chicago, and tru stee, N o rth w estern U niversity, and th e com m ittee for economic developm ent. All of th e officers of the b ank w ere re-elected. Merrill Promoted C. R. M errill, a ssistan t vice p resi dent, A m erican E x p ress Company, w as elected a vice p resident of A m eri can E xpress Field W arehousing Cor poration, R alph T. Reed, p resid en t of both com panies, announced. Mr. M errill has been associated w ith A m erican E x p ress in terests since 1920, com ing to A m erican E x p ress Com pany a fter considerable experience in th e b an king field in th e m idw est and W all Street. He has been a director of th e A m erican E xpress F ield W arehousing C orporation since its inception in May of last year. Speed Pay to Sailor Sam T h at big, broad, satisfied sm ile you see on Sailor Sam ’s face these days is th ere for a reason. Sam ’s gettin g paid reg u larly now. Be he on a coral atoll in th e Pacific or doing subm arine d u ty u n d er th e w aves of th e broad A tlantic, be he fresh from b attle or safe at hom e— Sam ’s m oney is alw ays on tim e. A C leveland concern is en titled to a OUR 50th YEAR 35 c erta in sh are of th e cred it for the N av y ’s c u rre n t p ro m p tn ess in m eeting pay day deadlines. F o r th e g h o st’s help er on pay day—you know , th e day th e g host w alks—is a sm all, em bossed m etal plate, know n as an Addressog ra p h plate and m ade by Addressograph-M ultigraph Corp., of Cleveland, Ohio, a leading m a n u fa c tu rer of b u si ness-sim plifying and duplicatin g m a chinery. T his plate is th e tin y h e a rt of a new N avy pay plan w hich has reduced th e d isb u rsin g officer’s pap er w o rk to a m inim um , w hile at th e sam e tim e g u aran teein g Sailor Sam and his sea farin g associates ag ain st prolonged de lays in receiving pay. Frank Fuchs Advanced The board of directors of th e F irs t N ational B ank in St. Louis has a n nounced th e prom otion of F ra n k F uch s from a ssista n t cashier to as sista n t vice president. Mr. F u ch s is w ell know n as a te rrito ria l re p re se n ta tive of th e b an k in the cen tral west. O ther prom otions w ere: A. C. Pohle, from a ssista n t vice p resid en t to vice I S prompt, efficient collection of W isconsin checks and drafts im portant to you? D o you ever need first-hand facts about sources of supply in W isconsin? . . . credit information? . . . market data? . . . w ho’s who? W hatever your requirements — routine bank ing service, special information, or off-the-beatenpath assistance — the chances are that the facil ities, long experience and statewide contacts of the First W isconsin N ational Bank of Milwaukee can supply the answer. FR A N K FU C H S B ecom es A ssista n t V ice President This bank is the largest in the state . . . 25th in size among all banks in America . . . and over 85 per cent of the hundreds of banks throughout W isconsin are First W isconsin correspondents. presid en t; R ay J. M iller, from a ssista n t cashier to a ssista n t vice president; George C. Conrad, to a ssista n t cashier; E. A. T abbert, to a ssista n t m anager, cred it d ep artm en t. Wm. D. M eacham, form erly a ssista n t vice president, F irs t N ational B ank of C larksville, T en n es see, w as elected an a ssista n t vice p resi dent, and w ill be a te rrito ria l officer in Illinois, In d ian a and K entucky. All o th er officers w ere re-elected. P ro b a tio n C ourtship is a period d u rin g w hich a girl decides w h e th e r she can do better. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banks and Bankers Division GEORGE T. C A M P B E L L ................................. V ic e -P r e s id e n t RICHARD J. LAWLESS A s s is ta n t V ic e -P r e s id e n t D O N A L D A. HARPER . . . A s s is ta n t V ic e -P r e s id e n t • M em b er o f the F e d e ra l D ep osit In su ra n ce C o rp o ra tio n r L. first wiscom NATIONAL B1 IK OF MILWAUKEE Northwestern Banker February Í945 36 L O Y A L T Y + E F F O R T = S U C C E S S ! W e congratulate YOU on our success for the y e ar 1944 a n d we are h ap p y a n d proud to present to you the fine financial state m ent which your loyalty a n d effort h as m ade possible. W e realize that it is only through full cooperation that it is possible to secure the results pictured here a n d we are alw ays p leased a n d h ap p y to be represented by our good friends in the banking industry. Financial Statem ent as of Decem ber 31, 1944 LIABILITIES ASSETS C a s h ...................................................................................... $ 1 3 0 ,1 1 6 .3 9 C u r r e n t B ills ..................................................................... $ 4 0 2 .5 6 (amortized value) ........................... 6 0 3 ,9 4 0 .0 0 E m p lo y e e s B o n d A c c o u n t ..................................... 1 8 9 .2 5 B u ild in g a n d L o a n S h a r e s ................................... 1 6 ,5 0 0 .0 0 G o v e r n m e n t W it h h o ld in g T a x ........................... 9 8 9 .9 0 O w n e d ................................................... 3 ,0 0 0 .0 0 C u r r en t R e in s u r a n c e P r e m iu m s ........................ (none delinquent)................... A g e n t s (current balances) .............. 1 1 1 ,2 9 0 .9 2 U . S. B o n d s R e a l E s t a te F irst M o r t g a g e s D u e fr o m R eserv e 8 ,1 1 8 .7 5 fo r T a x e s ..................................................... 1 4 ,8 6 8 .4 1 7 9 ,2 3 5 .2 5 R e s e r v e fo r U n e a r n e d P r e m i u m s . . ............. 4 4 5 ,4 5 2 .1 3 D u e fr o m R e in s u r in g C o m p a n i e s ................... 2 ,9 6 8 .8 1 R e s e r v e fo r U n p a i d L o s s e s ................................... 5 6 ,4 9 4 .5 1 A c c r u e d I n te r e s t o n I n v e s t m e n t s ................... 4 ,2 7 7 .4 2 A d d i t io n a l R e s e r v e A c c t ., S c h e d u le P . . . . 3 1 ,2 1 6 .0 0 o f L ife I n s u r a n c e ........................ 1 6 ,2 9 9 .4 0 C a sh V a lu e Surplus .............................................................. 409,896.63 $ 9 6 7 ,6 2 8 .1 9 W E S T E R N $ 9 6 7 ,6 2 8 .1 9 M U T U A L FIRE I NSURANCE CO. 9 th & G rand D e s M oin es, I o w a “Over a Third o f a Century o f Safety and Service with Savings Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 1945 ” O I K 5 0 th Y E A R M y S o cia l S e cu rity S a le s T a lk Tell the Prospect How Easy It Is to Create an Estate With Social Security as a Back-log By Lou K. Newfield General Agent Lincoln National Life Insurance Company Oakland, California L O U K. N E W F IE L D U ses O rganized S ellin g OW do you do, Mr. Prospect? My nam e is Newfield and I have som e v ery im p o rta n t in fo rm a tion for people w hose w ork comes u n d e r th e heading of th e Social Security Act. Do you have Social S ecurity de ductions m ade from y our pay check?” “Yes, I do.” “It so happ en s th a t a large nu m b er of people w ho come u n d e r th e Social S ecurity Act m ay n ev er derive th e b e n efits from it to w hich th e y are entitled, and I know th a t if you or y o u r fam ily could avoid being deprived of these benefits y o u ’d w a n t to know how it could be done, w ouldn’t you?” “N atu rally .” (L et us assum e th a t you are inside and seated.) “To com m ence w ith, Mr. Prospect, an article w hich appeared in T h e S a t u r d a y E v e n i n g P o s t some m onths ago c arrie d w ith it a sta te m e n t by th e edi tor of th a t m agazine th a t as. a re su lt of a su rv ey w hich had been m ade it w as felt th a t less th a n 5 p er cent of th e peo ple w ho come u n d e r th e Social Secu rity Act know w h at it w ill do for th e m H Jf or for th e ir fam ilies. H ave you had th e act explained to you since it w as am ended in 1939?” (He probably w ill say no. If he has had it explained to him , ask him to ex plain it to you to m ake su re th a t he does u n d erstan d it.) “W hen th e act w as first p ut on the books by Congress, it becam e effective J a n u a ry 1, 1937, and it provided, brief ly, th a t if you w orked u n til age 65 and th e n qu it w orking, you w ould receive an incom e for th e re st of your life. It also provided th a t if you passed aw ay before reaching age 65, th ere w ould be a sm all lum p sum of m oney paid to Mrs. Prospect. This, at th e presen t tim e, w ould have am ounted to not over $250 to $300 at th e outside. Congress early recognized th a t th ere w as room for im provem ent in th e m easure and in A ugust, 1939, it w as changed so as to provide th a t if a m an passed aw ay and left a w idow w ith one or m ore chil d ren u n d er 18 y ears of age, no lum p sum of m oney w ould be paid to her, b u t instead she w ould receive a m onth ly incom e u n til th e youngest child reached 18 years of age. Did you knew th a t? ” (W hether th e answ er is yes or no, proceed as follo w s): “N aturally, you’d like to know how m uch th is m onthly incom e w ould S carborough g First N ational Bank Building, C hicago O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis am ount to in th e case of your family, w ouldn’t you?” “Yes.” “I w ill need a little inform ation from you in order to quote th e figures. How long have you been w orking u n d er th e Social Security A ct?” “E v er since it sta rte d .” “T hen you have been u n d er it for approxim ately eight years. A nd w hat w ould you say has been y o u r average m onthly incom e since Ja n u a ry 1, 1937?” “I guess it w ould average around $175 per m onth.” “One m ore question; how m any chil dren have you and w h at are th eir ages?” “I have a boy five years old and a girl age tw o.” “And w hen w ere you b o rn ?” “In Septem ber of 1914. I am 30 years old.” “Fine. According to this chart, if an y th in g happened to you th is year and your average m onthly incom e has been $175, Mrs. Prospect w ould receive a little over $60 p er m onth for 13 years u n til your boy reaches age 18. T hen the incom e would drop dow n to a little over $43 p er m onth for th ree y ears more, at w hich tim e all m onthly in come from Social Security w ould cease. If Mrs. Prospect reaches age 65 and C o m pan y H orace A. Smith. Iow a R epresentative Des M oines. Iow a N orthwestern Banker February 19^5 38 “Well, w ould you say $150 a m onth w ould be about rig h t? ” “Yes; she could even get along on less th a n th a t.” “W hat w ould you say to $135 p er m onth as a m inim um ?” “I th in k she could get by on th a t.” “W ould you w an t h er to have any less th a n $135 p er m o n th ?” “No; I guess th a t w ould be about the least she w ould need.” (W e w ill assum e th a t th e p rospect’s w ife is p resen t—som ething to be de sired. If she is, ask h e r th is n ex t ques tion direct; if not, you can p u t the question to th e prospect him self.) “Mrs. Prospect, let me ask you this: If you had yourself and the tw o chil d ren to tak e care of and w ere to re- has n o t rem arried , she w ill receive an incom e of a little over $26 p er m onth for th e re st of h e r life. T h a t’s n o t a bad deal, is it? ” “No, and th a t’s th e first I have know n of it.” “Well, th e question I w an t to ask you is th is: W ith your living expenses out of th e p icture, w ould Mrs. P rospect and th e tw o ch ildren be able to get along w ith $60 p er m o n th ?” “I should say not!” “Well, how m uch do you th in k w ould be th e least am o u n t she could get along on—not th e m ost b u t the v ery m in i mum ? Do you th in k she could get along on $200 a m o n th ?” “Oh, sure, she could get along on a lot less th a n th a t.” ----------------- —- Iú ¿r -fr¿r û û j ^ ..........—— —y General A merican Life Insurance Company WALTER W.Hinni EAD.PRESIDENT St. Louis 3, Missouri F i n a n c i a l S t a t e m e n t D ecem ber 31, 1944 S S K T S CASH ON H A N D A N D IN B A N K S ................................... $ 7,783,883.34 B O N D S— m I U . S. G overnm ent................................................................. 46,875,928.08 ^ I Other B o n d s............................................................................ 5,313,153.27 CASH A N D B O N D S ................................................................................................$ 59,972,964.69 F IR S T M ORTG AG E LOANS ON R E A L E S T A T E ................................... 45,210,987.17 F. H. A. Loans Insured by U . S. G overnm ent................$21,500,197.73 Other First M ortgage L oans................................................. 23,710,789.44 HOM E OFFICE B U IL D IN G .............................................................................. 860,000.00 O TH ER R E A L E S T A T E ....................................................................................... 7,772,062.87 REAL E ST A TE SA LES C O N T R A C T S........................................................... 206,057.26 ST O C K S......................................................................................................................... 1,113,521.53 IN T E R E S T A N D R E N T S ON IN V E S T M E N T S A C C R U E D B U T N O T Y E T D U E .................................................................................................. 683,523.47 IN T E R E S T A N D R E N T S D U E O N IN V E S T M E N T S (N one o f which is past due more than 90 d a y s)............................................. 166,522.57 O T H E R ASSETS, PR IN C IP A L L Y N E T P R E M IU M S IN COURSE OF C O L LE C T IO N ............................................................................................. 1,891,264.85 2,772,878.00 © B A L A N C E OF IN IT IA L PO LICY L IE N S ................................................ LOANS TO PO L IC Y H O L D E R S......................................................................... 19,242,441.88 ©TO TA L A S S E T S ..................................................................................................... $139,892,224.29 L IA B IL IT IE S © PO LIC Y R E S E R V E S ...........................................................................................$128,317,978.06 PR E M IU M S A N D IN T E R E S T P A ID IN A D V A N C E ............................ 811,983.52 R E SE R V E FO R T A X E S ................................................................... 998,800.64 ESCROW F U N D S (D eposited b y mortgagors for paym ent o f taxes and expenses)......................................................................................................... 281,910.15 R E SE R V E FOR A C COUNTS N O T Y E T D U E ........................................ 534,059.75 PO LIC Y H O L D E R S’ D IV I D E N D S ................................................................... 1,666,990.62 $132,611,722.74 T O T A L ..................... PO RT IO N OF C U R R E N T Y E A R ’S E A R N IN G S A V A ILABLE FOR F U T U R E D IV ID E N D D E C L A R A T IO N TO P A R T IC IP A T IN G PO L IC Y H O L D E R S........................................................................................... 696,193.00 C O N T IN G E N C Y R E S E R V E .............................................................................. 4,273,173.30 Under Purchase A greem ent................................................. $ 2,888,708.30 For Group Insurance.............................................................. 934,465.00 O ther............................................................................................ 450,000.00 C A PITA L STOCK A N D G U A R A N T Y F U N D ......................................... 500,000.00 S U R P L U S ..................................................................................................................... 1.811,135.25 © TO TA L L IA B IL IT IE S ....................................................................................... $139,892,224.29 © A ctual M arket Value o f Bonds is more than $1,197,000 in excess o f the amounts shown above. ®Does not include liens totaling $573,050 which have been discharged by payments in cash or credit by policyholders, nor $74,502.27 liens on dividends on deposit, both o f which items w ill share in future lien reductions. ®Includes assets in “O ld Com pany Account’’ established under Purchase Agreement dated September 7, 1933, on file w ith the Superintendent o f the Insurance D epartment o f the State o f Missouri, (copy o f which agreement m ay be obtained from him or the com pany), against which the Superintendent reserved a lien to protect certain liabilities therein described and fully included among the liabilities in this statement. Status o f O ld Com pany Account on file with the Superintendent and w ith the company. (¡¡Full net legal reserves on policies issued by General Am erican L ife are secured by deposit o f approved securities w ith the Superintendent o f the Insurance D epartment o f the State o f Missouri. T h e capital stock, guaranty fund, and surplus are additional protection to a ll policyholders. A d e t a ile d r e p o r t o f th e c o m p a n y ’s fin a n c ia l c o n d itio n a n d b o n d h o ld in g s m a y b e s e c u r e d u p o n r e q u e s t. A d d r e s s in q u ir ie s : P u b lic ity D e p a r tm e n t,— S e c tio n N . * * * MULTIPLE LINES: Participating • N on-Participating • Salary Savings • Juvenile Sub-Standard • Annuities • Commercial A ccident and Health and H ospitalization Group Life • W holesale Insurance • Group A ccident and Sickness • Grpup A cci dental Death and Dism em berm ent • Employee and D ependents Group H ospitalization w ith Surgical Procedure benefits. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 1945 ceive around $60 a m onth from Social Security and you needed $135 to get by on, w h at w ould you do?” “I guess I ’d have to go to w ork and earn th e balance of it.” “Well, you spoke up like a redblooded A m erican w om an and m ore pow er to you for your determ ination. But, in fu rth e r explanation of the So cial Security Act, let me say th a t if you w ere to go out and w ork in covered em ploym ent and you w ere to earn $15 a m onth or m ore, you w ould lose alm ost all of the $60 th a t th e Social S ecurity Board w ould otherw ise pay you. In o th er w ords, w ith an average incom e of around $55 a m onth over such a long period you can see th a t you w ould be literally kissing goodbye to several thousand dollars unless some p rovi sion w ere m ade to safeguard it. You cannot be a w o rk er , u n d er Social Se c u rity and still receive th e m onthly in come. And, n atu rally , both Mr. P ro s pect and you are paying for th e Social Security coverage because th e am ount deducted from th e pay check is m oney w hich does not come into his home. T h a t’s true, isn ’t it?” “Now, if I could show you a plan, well w ith in your m eans, w hereby you could provide th e shortage betw een $60 a m onth and $135 a m onth and n o t have to go to w ork and still save every dollar to w hich yo u r fam ily w ould be entitled u n d er th e Social Security Act, you w ould n a tu ra lly be in terested in know ing how th a t could be done, w ouldn’t you?” “Yes.” “Well, le t’s see; if you need $135 a m onth and you are already provided th ro u g h th e Social S ecurity Act w ith $60 a m onth, th ere is a shortage ex ist ing of $75 a m onth. (You w ill prob ably have to do a little figuring from th e ra te book here, th e n proceed.) If you could set aside from your p resen t pay check betw een $11 and $12 p er m onth, th e com pany w hich I re p re se n t w ill en ter into an agreem ent w ith you th a t in the event an y th in g w ere to happen to you, Mr. Prospect, it w ill pay im m ediately upon y o u r passing out of th e picture, $75 p er m onth, and th a t w ill continue to your fam ily m onth afte r m onth and year afte r year u n til 20 y ears from now. This income, along w ith th e Social Security incom e of $60 a m onth, w ill provide th e m in i m um of $135 th a t your fam ily w ould require. And th a t’s not all, because at th e end of th a t tim e we w ill tu rn over to Mrs. P rospect $5,000 in cash w ith w hich to set herself up in a business, such as ru n n in g a beau ty shop or a chicken ranch, w hereby she can be come self-supporting and not depend en t upon th e children. Or, in lieu of this $5,000, we w ill pay h e r a m onthly OUR 50th YEAR 39 incom e m onth a fte r m o n th and year afte r y e a r u n til she is 65 y ears of age, a t w hich tim e th e Social S ecurity in come of a little over $26 a m onth will keep h e r as a w elcom ed g u est in th e hom e of y o u r son-in-law or daughterin-law as long as she lives. If you live to age 65—and th a t’s w h a t you hope to do, I know —we w ill give you $17.85 additional m onthly incom e for th e re st of y o u r life to tie in w ith y o u r ow n Social S ecurity re tire m e n t incom e to w hich you w ould be en titled at th a t tim e. Now, Mr. Prospect, y o u ’d cer tain ly like to ow n a plan like th at, w ouldn’t you?” Jones Re-elected B. R ees Jones w as re-elected p re si den t of th e Tow n M utual D w elling I n su rance C om pany a t th e com pany’s 52nd an n u al m eeting, held at th e hom e Rees Jones, Wm. J. Goodwin, and Rex H. Fow ler, all of Des Moines. Because of th e need of tra n sp o rta tion and hotel facilities in th e w ar ef fort, no ag en ts’ m eeting w as held in connection w ith th e an n u al m eeting. Largest Income The F a rm e rs M utual H ail Insu ran ce Com pany last year had th e largest p re m ium incom e and paid th e largest loss es to policyholders in th e histo ry of th e com pany, according to rep o rt made to th e an n u al m eeting of policyholders a t th e com pany’s hom e office in Des Moines. P resid en t C. P. R utledge, in his an nual report, announced th a t adm itted assets will show a su b stan tial increase over last year and now total approxi m ately $2,100,000, w ith a su rp lu s of $1,500,000. P rem ium incom e for the p ast year has been over tw o and a half m illion dollars, he reported. At th e annual policyholders’ m eet ing, Jo h n W. R utledge of E arly, Iowa, and W. S. R utledge of Des Moines, w ere re-elected to th e board of direc tors. A t the an n u al m eeting of th e board following the policyholders’ m eeting, C. P. R utledge of Des Moines w as re-elected president; R. T. R u t ledge of Storm Lake, vice president; P e rry R utledge of Storm Lake, ch air m an of th e board; W. A. R utledge of In creased A b ilit y to Serve Both Agents and Policyholders Statem ent of Assets and Liabilities December 31, 1944 ASSETS Bonds (Amortized Value) $ 1,329,680.69 32,623.85 123,895.41 Federal Savings & Loan Certificates------------------Bank Certificates of Deposit------------------------------Deposits (not on interest) Central National Bank & Trust Co-------------- $ Iowa-Des Moines National Bank & Trust Co._. Grinnell State Bank, Grinnell, Iowa------------Cash in Office--------------------------------------------- $ 1,486,199.95 75,500.00 85,000.00 154,086.11 10,000.00 5,000.00 285.00 83,281.34 Agents’ Balances (Under 90 Days O ld)----------------Interest Accrued Bonds ----------------------------------- -------------------- $ Federal Savings & Loan (Dividends Declared): Certificates of Deposit--------------------------------- 8.656.02 958.75 76.25 office in Des Moines. A gain of $24,606,111 in in su ran ce in force and an increase of $87,339.22 in assets d u rin g th e p ast y e a r w as announced in th e an n u al re p o rt p resen ted to th e m eet ing by P re sid e n t Jones. I t w as announced th a t Tow n M utual D w elling In su ran ce C om pany’s in creased volum e of business has m ade it n ecessary to ex pand p resen t q u a r ters, and th a t th e com pany has now ta k e n over th e en tire n in th floor of th e H ubbell Building. O ther officers elected w ere: L ester T. Jones, Des Moines, vice president; F ra n k H. D irst, H am pton, secretary; W m. J. Goodwin, Des Moines, tre a s u r er; C. L. H enschel, Des Moines, assist a n t secretary; Leslie L. Greve, Des Moines, a ssista n t secretary; Gus Scurlock, Des Moines, su p e rin te n d e n t of agents. D irectors re-elected w ere: B. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9,691.02 $ 1.832,543.42 TOTAL ADMITTED ASSETS______ B. R E E S JO N E S A gain H eads Town M utual 169,371.11 LIABILITIES Reserve for Liability and Workmen’s Compensation Claims -------------------------------------------------------Reserve for All Other Claims-----------------------------Estimated Expenses of Inv. and Adj. Claims-------- 389,096.50 99,918.17 8,493.04 497,507.71 534,912.01 31.424.88 626.33 1,376.31 Reserve for Unearned Premiums--------------Reserve for Taxes and Miscellaneous Items. Reserve for Dividends----------------------------Funds Held Under Reinsurance Treaties— Reserve for Contingencies------------------------ 100,000.00 1,165,847.24 TOTAL LIABILITIES Guaranty F u n d ---------------------Surplus Over All Liabilities---- 250,000.00 416,696.18 Surplus as Regards Policyholders- 666,696.18 TOTAL ________________ 1,832,543.42 ALLIED MUTUAL CASUALTY COMPANY Harold S. Evans, Hubbell Building P resid en t Des Moines, Iow a Northwestern Banker February 1945 40 No Market Losses Des Moines, secretary; F. O. Rutledge of Des Moines, assistan t secretary, and W. S. R utledge of Des Moines, tre a s u rer. IF Favor Military Training you in v est y o u r m o n ey from . . . — — — — — — Trust Funds Endowment Funds Insurance Funds Pension Funds Cemetery Care Funds Individuals — in our 3% Federally in sured certificates, which have safety, liquidity and freedom f r o m m arket losses. George E. Virden, Secretary W om en, by a m argin of five to one, favor a national program of peacetim e m ilitary train in g after th is w ar is over, w hile m en favor such a program by a m argin of four to one, according to th e final re p o rt on a poll of policyholders ta k e n by N o rth w estern N ational Life In su ran ce Company. A m ajo rity of persons favoring such a pro g ram feel th a t th e m ilitary tr a in ing should be adm inistered th ro u g h o u t th e four years of high school, along ROTO lines, and n early one-half of those opposed to th e idea of national com pulsory m ilitary tra in in g in peace tim e w ould have no objection to such tra in in g if it w ere given as a p a rt of the reg u lar public high school educa tional system , th e su rv ey found. Comm erce Trust Promotions Am ong o ther prom otions a t th e Com m erce T ru st Company, K ansas City, w as th a t of R ichard L. D unlap to th e office of vice presid en t of the in stitu tion. The Commerce T ru st staff, fol low ing all prom otions, is now as fol lows: Jam es M. K em per, president; George W. Dillon, vice presid en t and secre tary; Jam es E. Goodrich, vice p resi dent and general counsel. Mr. W heat, The Russell County Building &Loan Association RU SSELL, BU Y W AR BONDS KAN SAS A New Sickness P olicy W ith o u t th e R estrictio n s or R e d u c tions Com m on to M ost H e a lth Policies! Pays a t th e Sam e R ate fo r N on-confining Sickness As C on fining an d also P rovides fo r P a rtia l D isability. W R ITE FOR A PPLIC A TIO N AND LITER A TU RE M INN ESO TA CO M M ERCIA L MEN'S A SS O C IA T IO N 2 5 5 0 P illsb u ry A ve. M in n ea p o lis 4 , M inn. Resources of OVER TW O M ILLION D O LLARS Experience of OVER TW ENTY-FIVE YEARS Now d edicated to the Surety and Fidelity Bond needs of the M iddle W e st. S u r e ty d iv is io n The State Automobile Insurance Association D ES Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M O I N E S , February 1945 IOWA R IC H A R D L. D U N L A P N ow a V ice President vice p resid en t and cashier; F re d B Brady, A. B. Eisenhow er, F. C. M ar qua, G erald P ark er, F red M. Staker, Joseph C. W illiam s, Mr. McLucas, Mr. Miller, Mr. Bauer, Mr. Bingham , Mr. C harlson, Mr. D unlap and Mr. W ann, vice presidents; E. C. A rm strong, com ptroller; R ay L. Cargill, F. W. H arpst, Mr. Morse and Mr. Sagl, as sistan t vice presidents; F. L. C hurch, E. J. F linn, Miss E m m a M. Hall, O. R. Leweke, W. S. Maloney, E. G. McMonigle, Jo h n O’Keefe, E. O. Peed, W. H. Potts, R aym ond Ram sey, H a rry L. W uerth, Mr. Roach, Mr. Pugsley and Mr. H utchason, assistan t cashiers; R alph L. Adams, tru s t officer; H. P. Cam eron, C. H. Owens and Mr. McNeal, a ssistan t tru s t officers. First Wisconsin Promotions At the an n u al m eeting of th e board of directors of th e F irs t W isconsin N ational -Bank, M ilwaukee, all officers of th e b ank w ere re-elected and th ree advancem ents w ere announced. George F. K asten and E dw ard R. D roppers w ere advanced from assist a n t cashiers to a ssistan t vice p resi dents, and E dw in J. W igdale w as p ro m oted to assistan t cashier. L ieu ten an t (j.g.) George F. K asten, OUR 50th YEAR 41 on leave of absence from th e b ank serv in g in th e U. S. Navy, has been a m em ber of th e b a n k ’s staff since 1934. H e becam e an a ssista n t cashier in 1940. Mr. K asten is a g rad u ate of th e M ilw aukee U n iv ersity School and Wil- T. Nicolai, Nicholas R endenbach, E d w ard S. Tallm adge, Clarence J. W eber, L. C arleton W hite, R obert A. Z entner, assistan t vice presidents; Clarence S. Becker, Sam uel E. Callahan, D. W esley Correll, P hilip J. Dreis, W alter E. Engel, Jo h n L. G ruber, L aw rence K. H oughton, E dw ard V. K aiser, Sylves te r M. Koller, A ustin S. Lett, R oland R. Roehm , W illiam E. Schum m , Jo h n G. Topp, E dw in J. W igdale, assistan t cashiers. ten, president; W illiam Taylor, execu tive vice president; W illiam G. Brumder, E dw in B uchanan, George T. Campbell, Carl M. F lora, W illiam J. K lum b, Joseph U. Ladem an, E dw in R. Ormsby, Jo h n S. Owen, C hester D. R aney, Joseph W. Simpson, Jr., Roy L. Stone, vice presidents; A. G. Casper, cashier; C larence H. Lichtfeldt, com p tro ller; E d w ard R. D roppers, Donald A. H arper, P ierre N. H auser, George F. K asten, R ichard^J. Law less, F ra n k Financial Statement of A m e r i c a 's e'XX>luâiu& lanxj,eài DW ELLING IN S U R A N C E C O M P A N Y December 31, 1944 W A L T E R K A ST E N President ADMITTED liam s College. He is a m em ber of th e b a n k ’s loaning division. Mr. D roppers joined th e staff of the F irs t W isconsin in 1928, a fte r his g rad u atio n from th e U n iv ersity of W iscon sin. In 1943 he w as elected assistan t ASSETS Cash in B an k s and O f f i c e ----------------------------- — — $ 317,512.22 F ed eral S a v in g s and B u ild in g and L oan A sso cia tio n s 285,000.00 U . S. G overnm ent B o n d s --------------------------------------1,200,220.81 State, C ou nty and M unicipal B o n d s -------------------------181,392.77 Canadian B o n d s -------------------------------------------------------108,889.01 105,863.50 C anadian N ation al R ailw ay B o n d s------------- ----------— (G ua ranteed b y Canadian G over nm ent) P u b lic U tility B on d s— --------------------------------------- — F ed eral L and B ank B o n d s --------------------------------------A ccrued I n t e r e s t ------------------------------------------------------A g e n ts’ B alan ces (N o t over 90d ays d u e ) --------------O ther A s s e t s -----------------------------------------------------------*TO TA L A D M IT T E D 52,051.72 89,576.25 14,337.79 44,926.22 563.59 A S S E T S -------------------- $2,400,333.88 *A11 Bonds are amortized. If valued at market, assets w ould be increased $47,478.56. LIABILITIES R eserve for L o sse s and A d ju stin g E x p e n s e s -------- $ 41,852.09 ( L o s s e s incurred and in proces s of a d ju s tm e n t) R eserve for U n earned P r e m iu m s ------------------------— R eserve for T a x e s and E x p e n s e s ----------------------------O ther L i a b i l i t i e s ------------------------------------------------------- 925,614.83 22,268.80 1,492.57 T o ta l L iab ilities and R e s e r v e s ------------------------$ 991,228.29 G uaranty F u n d ---------------------------------- $ 200,000.00 S u r p l u s -------------------------------------------------- 1,209,105.59 S U R P L U S T O P O L I C Y H O L D E R S ------------------- 1,409,105.59 T O T A L ------------------------------------------------------------ $2,400,333.88 Insurance in Force December 31, 1944 % $6 1 5 , 8 7 6 , 7 9 6 . 0 0 LT. ) (j.g .) G E O R G E F. K A R ST E N A ssista n t V ice President cashier. He heads th e b a n k ’s credit dep artm en t. Mr. W igdale has been w ith th e b ank since 1928 and is at p re se n t a m em ber of th e b a n k ’s loaning division. He is a g rad u ate of W auw atosa high school and atten d ed th e U n iv ersity of W is consin. Officers reelected are: W alter K as OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis t / o u n 'A l u f t i a / Dwelling Insurance Company B. REES JO N E S . President H ubbell B uilding, Des M oines Northwestern Banker February 1945 42 NATIONAL SURETY CORPORATION V I N C E N T C U L L E N , P re sid e n t • FINANCIAL STATEMENT December 31st, 1944 A SSETS Cash in B a n k s.......................................................................................... $ 2,422,462.37 Investments: Bonds o f United States Governm ent. . $ 9,848,001.72 State and Municipal Bonds . . . . 1,534,057.83 Preferred S t o c k s ......................................... 5,254,870.00 Common S t o c k s ............................................. 10,270,900.00 26,907,829.55 Capital stock of National Surety Marine Insurance Corporation, a wholly owned s u b s id ia r y ......................................................... Premiums in Course o f Collection, N ot over 90 Days Due Accrued I n t e r e s t .................................................................................. Reinsurance and Other Accounts R e c e iv a b le ................................. Home Office B u ild in g ........................................................................... 1,663,832.73 1,226,791.34 40,106.22 45,516.70 500,000.00 T O T A L A D M IT T E D A S S E T S ............................................ $32,806,538.91 L IA B I L I T IE S if*/ Reserve for Losses and Loss Adjustment Expenses . . . . $ 3,935,345.15 Reserve for Unearned P r e m i u m s .................................................. 5,920,309.31 Reserve for Commissions, Expenses and Taxes . . . . 1,945,729.66 Reserve for future changes in prices o f securities . . . . 2,380,209.98 C a p i t a l .................................................................. $ 2,500,000.00 S u r p l u s ...................................................................... 16,124,944.81 Surplus to Policyholders................................................................ 18,624,944 81 T O T A L ......................................................................................$32,806,538.91 Investments are carried on the basis prescribed by the New York Insurance Department— bonds being carried at amortized or investment values and stocks at values based on rates promulgated by the National Association of Insurance Commissioners. If investments were carried at the December 31st, 1944 market quotations, reserve for future changes in prices of securities of $2,380,209.98 would be increased to $2,920,547.25. Bonds carried at $1,112,636.86 are deposited as required by law. N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 19b5 OUR 50th YEAR 43 E. Hoff, vice presid en t and sales m an ager of K learflax L inen Looms, Inc.; Dr. S. N. L itm an, W est D uluth ph y si cian; Dr. Roy H. Pfeiffer, W est D uluth dentist; Dr. A. J. Spang, W est E nd physician, and H ilding J. Olson, cash ier of th e bank. M INNESOTA Rochester NEWS W ILBU R F. M cLEAN President Duluth Osseo W. M. N eum ann, form erly executive vice p resid en t of th e F a rm e rs State B ank of Osseo, M innesota, last m onth w as elected p resid en t to tak e th e place vacated by C harles H echtm an, w ho re tired. O ther officers are Jo h n D. Bleecker, vice president; A. P. H ech t m an, cashier; Donald J. M urphy and Joseph C houinard, a ssista n t cashiers. Total resources of th e b a n k reached a new high, as show n in th e last p u b lished statem en t, and are $2,003,408. Stillwater At th e a n n u al m eeting of th e F irs t N ational B ank, S tillw ater, M innesota, last m onth all officers and d irectors w ere re-elected and, in addition, two new nam es w ere added to th e board, Lloyd B. K olliner and Joseph S. Sim onet. S tockholders of th e F a rm e rs & M er ch an ts S tate B ank in S tillw ater nam ed directo rs as follows: W. C. Krog, C. E. Nelson, K. M. LaVine, R. M. H a d ra th and J. A. Goggin. Officers are: P re si dent, W. C. Krog; vice president, C. E. Nelson; cashier, A. A. D ahlke; assist a n t cashiers, H. A. Sw anson and H. E. Krog. The election b ro u g h t about th re e prom otions, C. E. Nelson, w ho w as vice p resid en t and cashier w as m ade vice presid en t; A lbert D ahlke w as prom oted to th e office of cashier, and H e n ry Sw anson and H. E. Krog, a ssista n t cashiers. All officers of th e C osm opolitan State Bank, S tillw ater, w ere re-elected. N am ed to th e board of d irectors w ere V. W illis Bloom, A. G. McCor mick, M. R. Nelson, E. L. Peaslee. L y m an Sutton, Lois M. Tolen and G. C. W elshons. President Retires S. J. M aurer, p resid en t and one of th e founders of th e C itizens S tate B ank of G aylord, M innesota, has announced his re tire m e n t from th a t in stitu tio n afte r forty-one y ears of service. Joins Mazeppa Bank T. L. Rask. a ssista n t cashier of th e G rafton N ational B ank, G rafton, N o rth D akota, since May 15, 1941, has resigned h is position and has ac cepted a post w ith th e Peoples States B ank at M azeppa, M innesota. Resians Presidency A 42-year te rm of service in th e Blue E a rth S tate B ank, Blue E a rth , M innesota, cam e to an end la st m onth OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W ILLIAM DUNCAN, Jr. Secretary Minneapolis w hen Jo h n Domes resigned his p resi dency in th e b ank and W alter Schw en of th a t city w as elected to take his place. Racine G ets Bank Charter A c h a rte r for a state b an k at Racine w as g ran ted to th e F irs t S tate B ank of Racine, M innesota. T he new b an k is expected to be in operation some tim e this m onth. George N. Reppe of G rand M eadow is to head th e in stitution. Duluth A $300,000' increase for th e year in D u lu th’s F irs t and A m erican N ational B an k’s su rp lu s account w as approved by directors, to g eth er w ith an increase of m ore th a n $600,000 in to tal capital accounts in line w ith a large increase in deposits. All p resen t officers and directors w ere re-elected. Prom oted to assist a n t cashier in th e b an king d ep artm en t w as R ay W. Campbell, m anager of the savings d ep artm en t and a m em ber of th e b ank staff since 1923. A new director w as nam ed to the board of N o rth ern N ational B ank and tw o v eteran officers w ere given pro m otions. All o th er officers and direc to rs w ere re-elected. T he new d irector is C hester L. B ridgem an, presid en t and m anager of B ridgem an C ream eries, Inc., ice cream and d airy m an u factu rers and d istrib u tors. P rom otions w en t to L. O. A nderson, cashier, w ho w as nam ed vice president and cashier, and P ercy R. Pasco, ele v ated to vice presid en t from assistan t vice president. One new director w as added to th e board of M innesota N ational B ank and all o th er directors w ere re-elected. T he new d irector is A rth u r Roberts, D uluth attorney. Mrs. Ju d ith Lewis, w idow of th e late p resid en t of P a rk State Bank, Douglas H. Lewis, w as nam ed to th e board of th e M organ P a rk Bank, and all other d irectors and officers w ere re-elected. G erald A. Myles, W est D uluth attornev, w as nam ed vice presid en t of th e P ioneer N ational Bank, succeeding th e late Louis R am stad. Mr. Mvles also w as re-elected to th e board of di rectors. A new vice presid en t and five new directors w ere nam ed to th e board of th e W estern N ational Bank, W est D u luth. E lected a vice p resid en t of th e b an k is Dallas C. W akem an, w ho also w as re-elected to th e board of directors. Added to th e directorship are Jo h n A. C. B urgan, cashier of th e U nion N ational Bank, R ochester, M innesota, for 18 years, subm itted his resignation, effective A pril 1st, at th e an n u al m eet ing of stockholders and w ill be suc ceeded by E lm er C. W einhold, form er ly a ssistan t cashier. George C. W erdel, vice presid en t of the C arroll County S tate Bank, Carroll, Iowa, w as elected executive vice presi dent and took over his duties last m onth. O ther officers w ere re-elected. At the Olm sted C ounty B ank and T ru st Company, R ochester, M innesota, all officers w ere re-elected and L. C. M iller w as nam ed a director. Capital stock w as increased from $125,000 to $200,000. Buhl Banker Dies F u n e ra l services for T erry P. Cory, 81, p resid en t of th e B uhl F irs t N ation al Bank, Buhl, M innesota, and pioneer resid en t of th a t city, w ere held last m onth. Plan Expansion P lans for the expansion of th e b an k ing room as soon as p rio rities can be obtained w ere announced a t th e an nual m eeting of the A ustin State Bank, A ustin, M innesota. D irectors chosen for th e forthcom ing year w ere: Dr. W. H. A lbertson, P. P>. Beaulieu, H. F. Garbisch, Dr. O. H. Heggs, W. L. M cLaughlin, H. E. R asm ussen and L. H. W illiam s. Red Lake Falls The Red Lake C ounty S tate Bank, Red Lake Falls, M innesota, last m onth chose th e ir board of directors for an o ther year. T hey are: Jacob L. Pete, Ely; À. W. H avela, D uluth; Jo h n J. Asíala, D uluth; W alter Johnson, E. G. R obertson, Jos. F. Skala and George W. C hristie of Red L ake Falls. Staples Since th e death of Ja y R. Nims, w ho w as executive vice p resid en t of the Staples State Bank. Staples, M innesota, new officers have been nam ed, re su lt ing in a prom otion for m ost of th e personnel of th e bank. J. F. Griep, w ho for m any y ears w as cashier, has been advanced to th e posi tion of executive vice president; E. N. Johnson, w ho w as an a ssistan t cashier, has been nam ed one of the vice presi dents; K. R. Johnson, w ho w as an as sistan t cashier, has been nam ed cashier of th e bank. R ichard N. G ardner w as retain ed as presid en t of th e bank, and K. R. Seifert rem ains as one of the vice presidents. Dawson G lenn E. B lom quist w as elected di recto r to succeed H en ry G oldstein at th e an n u al m eeting of th e N o rth w est ern S tate B ank stockholders in Daw son, M innesota. Northwestern Banker February 19^5 44 Northwestern National Bank Announces Promotions D O N O V A N E. C R O U L E Y V ice President F. w. C O N R A D V ice President CARL F. W IE S E K E A ssista n t Cashier S EV E R A L im p o rta n t changes in the F. W ieseke, w ho w as form erly w ith th e city d ep artm en t and has been con nected w ith th e b ank since 1917. He w ill cover the p a rt of th e te rrito ry fo rm erly handled by Mr. Conrad. The com plete lineup in th e co u n try bank d ep artm en t now includes Vice P resi den t Donovan E. Crouley; A ssistant C ashier L eonard P. Gisvold; A ssistant C ashier Carl F. W ieseke, and re p re sentative, A lton F. Junge. Vice P resid en t C rouley started w ith th e N o rth w estern N ational as a m es senger in 1917, w orked in clearings, th e n in tran sit, and becam e m anager of th e tra n s it d ep artm en t in 1928. He e n tered th e co u n try b ank dep artm en t in 1930 and from his w ide-spread tra v els in th e N orthw est, he probably know s as m any co u n try ban k ers in th a t area as anyone in th e en tire coun try . H e g rad u ated from th e G raduate School of B anking at R utgers, quali fying for his diplom a by w ritin g a thesis on “F inancing th e C attle F e e d e r” w hich is now in th e lib rary of th e A m erican B ankers Association. Don is v ery popular am ong co untry bank ers, and his advancem ent w ill be applauded by his m any friends. A ssistant C ashier L eonard P. Gis vold has been in th e co untry b an k de p a rtm e n t for several y ears and has m ade hu n d red s of friends th ro u g h o u t th e northw est. A ssistant C ashier Carl F. W ieseke has, of course, been w ith th e city new business d ep artm en t and w ill fit in nicely in th e new setup, w hile R epresentative A lton F. Junge, w ho joined th e co untry bank d e p a rt m en t a y ear ago, has b uilt up a nice following. Vice P resid en t W illiam N. Johnson, w ho w ill assist Vice P resid en t Clarence E. Hill, sta rte d w ith the b ank in 1912 and w as head of th e co untry bank d ep artm en t for fifteen years. He w as presid en t of th e M innesota B ankers A ssociation in 1935-1936. Vice P resid en t F. W. Conrad, w ho is tra n sfe rre d to com m ercial business, came w ith th e N orth w estern N ational in 1933 and is w idely know n in b an k ing circles of th e northw est. P resid en t F o rd also announced the re tire m e n t of Senior Vice P resid en t R obert E. M acgregor and th e addition of Stephen P. Duffy to th e Board. Five new officers w ere elected includ ing R aym ond Clausen, E d w ard P. W ells, and M ichael J. Crowe, w ho w ere nam ed tru s t officers; and Mel- official staff of th e N o rth w estern N ational B ank of M inneapolis, w ere revealed last m onth follow ing th e b a n k ’s an n u al m eeting, at w hich P re si d en t Shirley S. F o rd also announced deposits at th e end of th e y ear h ad hit a new high of $411,348,565. Of p a rtic u la r in te re st to b anks and ban k ers w as th e elevation of W illiam N. Johnson, w ho has been vice p resi den t in charge of th e co u n try b ank d ep artm en t, to a position w h ere he w ill assist C larence E. Hill, w ho is now ran k in g vice p resid en t of th e bank. Succeeding him as head of th e co u n try ban k d ep artm en t w ith th e title of vice president, is D onovan E. Crouley, form erly a ssista n t vice president, w ho is know n far and w ide am ong th e b a n k ’s co rrespondents since he has trav eled th e te rrito ry since 1930. F u rth e r changes in th e c o u n try b ank division include th e prom otion of F. W. Conrad, from assista n t vice p re s id en t to vice president, and th e tra n s fer of Mr. Conrad from the co u n try b ank to th e com m ercial d ep artm en t w here he w ill specialize on corporate business. A n addition to th e co rrespondent b an k division is A ssistan t C ashier Carl N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 1945 (T u rn to page 51, please) OUR 50th YEAR 45 T w in C ity N e w s T wo prom otions and election of th re e new officers of F irs t N ational Bank, M inneapolis, w ere announced by L y man E. W akefield, president, follow ing th e an n u al m eeting of directors, all of w hom w ere reelected at th e stock holders m eeting w hich preceded. W illiam A. V olkm ann, w ith th e de p a rtm e n t of b anks and b an k ers since By Jam es M. Sutherland Sp ecia l Correspon dent em ploy since 1916 and a ssistan t m an ager of th e savings d ep artm en t since 1941, w as nam ed a ssistan t cashier. E lected a ssistan t m anager of th e St. A nthony F alls office w as Thom as M. K elly, in th e b a n k ’s em ploy since 1927 and for the p ast seven y ears m anager of th e special g rain division. C oncluding a b anking career of m ore th a n half a century, 33 y ears of it as an officer of F irs t N ational Bank, St. Paul, and of the form er M erchants N ational Bank, John A. Oace retired as senior vice presid en t of F irs t N a tional u n d er the b a n k ’s pension plan. He continues as a vice president. M iles J. C onw ay, D avid K. P atter son, W alter J. B ergquist and Bernard V. M inea, a ssistan t cashiers, w ere ad W IL L IA M A. V O L K M A N N E lected a V ice P resident 1920 and a ssista n t vice p resid en t since 1943, w as advanced to vice president. A lan H. Moore, w ith th e b an k 16 years and its p ersonnel m an ag er since 1937, w as prom oted from a ssista n t cashier to a ssista n t vice president. D ouglas B. A llert w as elected a ssist a n t real estate officer. F o rm erly as sista n t secretary of F irs t M inneapolis Company, he has been m an ag er of real estate for th e b a n k ’s tr u s t d ep artm en t since 1943 and in th e em ploy of th e b ank or its affiliate since 1927. M aurice G. Carlson, in th e b a n k ’s OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis vanced to a ssistan t vice presidents, as w as Charles H. L oom is, m anager of th e in v estm en t departm ent. Leon L. Sm ith w as elected assistan t cashier. He sta rte d w ith th e b ank in 1919 as m anager, w as m anager of the collateral d ep artm en t and in 1942 joined th e credit d ep artm en t staff. F irs t N ational’s n et operating earn ings w ere $1,267,193 in 1944 against $1,124,626 in 1943, according to th e an n u al rep o rt of R ichard C. L illy, president. D ividends of $735,000 w ere paid. D eposits at the y e a r’s end w ere $277,752,221, ag ain st $257,400,947 a year earlier. he had gone early in D ecem ber for a rest and vacation. He had been suf fering from a h e a rt ailm ent. M attson w as born in C hristianstad, Sweden, in 1871, th e son of H ans and C herstin M attson, A m erican citizens w ho w ere trav elin g in E urope. His fa th e r at th a t tim e w as M innesota secretary of state. He sta rte d as a bank m essenger w ith th e old Swedish A m erican N ational B ank in 1888. In 1912 he becam e cashier of Scandina vian A m erican N ational Bank, w hich m erged w ith N ational City B ank in 1914 to becom e M idland N ational. At th a t tim e he w as m ade vice president. He becam e presid en t in 1932 and ch air m an in 1942. F arm ers and M echanics Savings Bank, M inneapolis, now is rem aining open u n til 8 p. m. M onday evenings to accom m odate m any of its 100,000 depositors w ho find it difficult to do th e ir b anking d uring reg u lar daytim e hours, according to announcem ent by H enry S. K ingm an, president. All services of th e b ank are available d u r ing th e new hours. The bank now opens each day a t 9 a. m. and rem ains open u n til 8 p. m. Mondays, 3 p. m. T uesdays th ro u g h F ridays, and noon Saturdays. Prom otion of th ree assistan t cash iers of A m erican N ational Bank, St. Paul, to a ssistan t vice presidents, w as announced follow ing th e an n u al m eet ing. T hey are Joseph A. C avitzel, Jam es P. L on ey and C lem ent P. R eis. George C. Osen, J. J. Strapp, P eter M. B ies and H enry L. A yd w ere elected a ssistan t cashiers. Steph en W . K ane w as nam ed a ssistan t tru s t officer. Edgar L. M attson, 73, ch airm an of th e board of M idland N ational B ank and T ru st Company, M inneapolis, and a b a n k er th ere for 57 years, died last m o n th in P u n ta Gorda, Florida, w here C entral N o rth w estern N a t i o n a l Bank, M inneapolis, elected tw o new directors: R obert A. A nderson, secre ta ry of Crown Sidew alk and B lock Northwestern Banker February 1945 46 Com pany, and W alter E. Johnson, p a rtn e r in Johnson B rothers, real estate and in surance firm. J am ies on becom ing assistan t cashier. In 1938 he becam e vice president, and Ju ly 1, 1941, he left th e b ank to becom e Julian B. Baird, vice p resident of F irs t N ational Bank, St. Paul, has been elected by directors of M inneapolis F ed eral R eserve B ank to serve as rep re sen tativ e of th a t b an k on the F ed eral A dvisory Council for 1935, P resident John N. P ey to n announced. Company Members New York Stock Exchange and N o rth w estern N ational B a n k ’ s N o rth A m erican office has added H arry A. T uttle, a ssistan t secretary of M. A. Gedney Company, to its ad visory board. Other Principal Exchanges ★ STOCKS BONDS COMMODITIES E lection of Calvin W . Aurand as vice presid en t and d irector of Mid land N ational B ank & T ru st Co. w as announced by P resid en t A rnulf Ueland follow ing th e an n u al m eeting of stockholders and directors. A urand joined M idland in 1925, subsequently ★ MINNEAPOLIS FARGO ST. PAUL GRAND FORKS DULUTH SIOUX FALLS PRIVATE WIRES C A L V IN W . A U R A N D Becom es V ice President and D irector i Out-of-Town ¥>anks O ut-of-tow n banks and bankers w ill find here com plete banking fa cilities for prom pt and economical handling of accounts in Chicago. We would appreciate the opportunity of serving you. M id W.m m m C i t y N a t i o n a l AND TRUST 2 0 8 S O U T H COMPANY H of L A S A L L E a n k Chicago S T R E E T ( Member Federal Deposit Insurance Corporation) Lonson com " vice presid en t and tre a su re r of N o rth w est B ancorporation, w ith w hich Mid land is affiliated. He w ill re tu rn to M idland about F e b ru a ry 15. R etirem en t of R obert E. M acgregor as vice presid en t of N o rth w estern N ational B ank also involved tw o af filiates of w hich he w as president. A t Second N o rth w estern State B ank F ran k C. O’Brien, an o th er N o rth w estern vice president, w as nam ed presid en t and director. At T h ird N orth ew estern N ational George M. C hristoferson w as advanced from vice presid en t and cashier to president. Joseph F. R ingland w as m ade vice presid en t and director and E arl A . P atch w as prom oted from a ssista n t cashier to cashier. F ifth N o rth w estern N ational B a n k boxes i cobioeïs Y O U R COIN A S C O M P A C T A S Y O U R C URREN CY” Av&UcUUe. tf-osi OnunecUcUe. ^beliu& uf. -union coin Boxes For All Denominations Lonson Coin Cabinets Lonson Coin Containers are used wherever loose coin accumulates and must be kept in Three Sizes sorted and counted. Banks, Financial Institutions and other businesses handling coin find them invaluable for keeping coin sorted, counted and compact for mobility. LONSON COIN BOXES are available either with wooden dividers for loose coin, or with no dividers for use with wrapped coin. They are "Self-Counting" and will hold only the amount of coin for which they are built. A vail able for all denominations. LONSON COIN CABINETS are constructed of heavy welded steei for durability. Divisions are exact and will hold cniy the amount of change indicated. Coin rolls are visible for exact counting and detection of misplaced rolls. They are Compact and save space on the counter. Available in three sizes to fit your counter needs. Write today for complete information and prices. Lonson mnnuffiauRinc co. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 1945 OUR 50th YEAR 47 nam ed th re e new directors: Adolph A ndersen, head of L inden H ills Clean ers and Dyers; H enry H. G r e g g , ow ner of G regg’s pharm acy, and E rlin g H. Shursen, real estate and in su ran ce m an. Clarence E. H ill re signed as p resid en t and w as succeeded by R ustan 0 . T hayer, vice president, w ho w as also m ade a director. Joseph D. H u sban d s w as added to th e board and M artin M cD onough w as p ro m oted from cash ier to vice p resid en t and cashier. W alter C. Coffey, p resid en t of U ni v e rsity of M innesota, has been red es ig n ated ch airm an of th e board and fed eral reserv e ag en t of M inneapolis F ed eral R eserve B ank u n d e r action by th e board of governors of th e F ed era l R eserve system , John N. P eyton , b an k presid en t, announced. V alkenburg and A lbert D allenm ayer. S totesbery also w as elected a director of M arquette N ational, w hile he and F u lle r both w ere added to the board of U niversity N ational Bank, w ith S totesbery being nam ed p resident to succeed O. H. Odin, w ho w as given six m o n th s’ leave of absence. A nother new director of U niversity N ational is W alter V. Brow n, presid en t of B row n Steel T ank Co. E m m ett J. E rickson w as elected a ssistan t tre a su re r and Clarence M. Ostrum au d ito r of F arm ers & M echan ics Savings Bank, M inneapolis, a t th e annual m eeting of trustees. E rickson has been w ith th e bank 20 y ears and has been in charge of the w ar bond payroll savings departm ent. In 1942-43 he w as p resident of Min neapolis chapter, A m erican In stitu te of B anking. O strum has been w ith th e b ank 18 years. He fills th e vacancy created by th e recen t death of Sam uel P. M artin. P resid en t H enry S. K ingm an re p o rt ed th e b a n k ’s assets have reached a record $112,136,000, of w hich 70 per cent is in cash, governm ent bonds and I V h a t o f t h e 3 n t u r e ? p resid en t of F in ch , V an Slyck & McConville, St. Paul, h as been reap p o in ted a class C directo r for a three-y ear te rm an d re designated dep u ty ch airm an of th e board. P. B. M cClintock, vice p re si d en t of F a rm e rs N ational B ank, Chi nook, Mont., has been reap p o in ted d irecto r of th e H elena B ranch for tw o years. Also re-appointed d irecto r of th e H elena B ran ch w as R. B. R ich ardson, president, W estern Life In su ran ce Com pany, H elena. R oger B. Shepard, W alter B. H obart, p ro p rie to r of L ow ry G rove Cabins an d T ra ile r P ark , has been elected a d irecto r of Co lum bia H eights S tate Bank, P resid en t A rth u r L. G luek announced. Clarence E. H ill, ra n k in g vice p resi den t of N o rth w e ste rn N ational Bank, h as been elected a d irecto r of N o rth w e ste rn M ortgage Com pany to fill th e vacancy caused by re tire m e n t of R obert E. M acgregor, P re sid e n t F . J. M ulcahy announced. D irectors of both N o rth w e ste rn and F irs t N ational B anks, M inneapolis, have voted to increase th e ir b a n k s’ su rp lu ses $1,000,000 by tra n sfe r of $1,000,000 from u ndivided profits. N o rth w e ste rn ’s su rp lu s now stan d s at $8,000,000, F irs t N atio n al’s a t $9,000,000. Two new directors w ere elected at th e a n n u al m eeting of Chicago-Lake S tate B ank, M inneapolis. T hey are R. E. Stotesb ery, vice p resid en t of F e d e r al D iscount Corp., D ubuque, Iow a, and L y n n F u ller, new executive vice p resi d en t of M arquette N ational B ank, M inneapolis. T hey succeed Jesse Van OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I t is tim e n o w to p la n for th e b o u n tifu l h a r v e sts o f th e years to com e. B u t th e fu tu re is b r ig h t e st for th e A m erican farm ers w h o fu lfill th eir o b lig a tio n to th e lan d . T o h a r v e st h e a v y y ield s farm ers m u s t restore th e e le m e n ts o f fe r tility lo st th r o u g h c o n tin u o u s u se o f th e soil. T h e y m u st p ra ctice co n tro l a g a in st so il erosion . O n ly w h en th e ir la n d s are in to p co n d itio n can farm ers lo o k ah ea d to p rosp erou s season s. M od ern , im p ro v ed farm m a c h in e s b u ilt b y M in n e a p o lis-M o lin e w ill h elp th e farm er keep up th e p rod u cin g p ow er o f h is la n d . T h e laborsa v in g fe a tu re s o f M M m a ch in es, to o , w ill h elp to g e t farm jo b s d o n e sp ee d ily an d effi c ie n tly , b rin g in g to farm ers m ore leisu re tim e to e n jo y a b e tte r life. B an k ers, w ork in g h a n d -in -h a n d w ith th eir F a rm M ach in ery D e a ler s, can h elp to bring th is richer life to farm ers . . . an d th e w h o le c o m m u n ity sh ou ld b en efit in p rop ortion . KEEP BUYING BODS M i n n e a p o l i s -M o l in e POWER IMPLEMENT COMPANY M IN N EA P O LIS 1, M I N N E S O T A , U . S . A. Northwestern Banker February 19^5 48 • M I N N E S O T A FH A m ortgages. S urplus set a new high of $7,376,000. Deposits, a t a rec ord $104,729,000 a t th e end of 1944, have increased by $37,500,000 and reg u la r savings accounts have grow n by m ore th a n 10,000 since th e b an k m oved into its new q u a rte rs in M arch, 1942. Com bined n et o p eratin g earn in g s of th e 72 affiliated b an k s of F irst Bank Stock Corporation w ere $5,232,034 in 1944, com pared w ith $4,352,925 in 1943, th e b ank holding com pany’s 16th a n nual re p o rt to stockholders disclosed. The portion of these earnings ap plicable to F irs t B ank, to g eth er w ith NEWS o perations of th e corporation and o th er active affiliates, w as $4,933,286, equivalent to $1.74 per share last year. T his com pares w ith $1.45 per share earned in 1943. Value of th e co rp o ratio n ’s capital stock, com puted on the basis of u n d er lying book values of affiliates Decem b er 31, w as $56,633,810. J. C. Moore, vice presid en t of Stock Y ards N ational Bank, South St. Paul, has been elected to th e added post of cashier, succeeding J. G. M cGarraugh, w ho resigned to go into th e insurance business. D. L. Grannis, attorney, w as • nam ed to the board of directors to succeed M cG arraugh. Ten new m em bers w ere in itiated into th e Covered W agon Club, com posed of 20-year em ployes of N o rth w estern N ational Bank, M inneapolis, and affiliates, at th e ann u al m eeting a t N icollet hotel. T hey are A. M. U rn ess, D yall J. Schribner, G. A. A rn ess, E d ward A. Carey, John W. Barber, Clara K. Lajord, H elen M. Gruidl, E dw ard D. Stow e and M artin J. Rider, all of th e m ain office, and Marie R iesch l of the F ifth N orth w estern Bank. G. Sidney H ouston, m anager of th e in v estm en t research d ep artm en t of F irst Service C orporation, operating affiliate of F irs t B ank Stock C orpora tion, has been elected a vice p resid en t of th e service concern. K. H. K anne, personnel m anager since 1935, w as nam ed a ssistan t tre a su re r, J. P. T horn ton, m anager of th e insurance d e p a rt m ent, and E. J. Loritz, m anager of th e consum ers’ finance departm ent. N o rth w est Bancorp oration and affili ates had consolidated n et incom e of $3,680,098, equal to $2.37 p er share, com pared w ith $3,432,226, or $2.21 p er share, in 1943, J. C. Thom son, p resi dent, announced in his an n u al re p o rt to stockholders. N et cash incom e of th e holding com p any w as $1,190,649, equal to 77 cents a share, ag ain st $962,333, or 62 cents a share, in 1943. D ividends to taling 60 cents a share w ere paid last year. A t th e sam e tim e, Thom son an nounced directors have elected R. F . M actavish, secretary and com ptroller, to the additional post of vice p resi dent, and H erb ert H allenberg, chief exam iner, as vice presid en t and treasu rer. M actavish joined N o rth w estern N a tional B ank in 1905 and w en t to Banco on its organization in 1929, as assist a n t treasu rer. H allenberg joined th e holding com pany in 1929, com ing from th e presidency of F irs t N ational B ank, M oorhead, M innesota, an affiliate. Book value of Banco stock increased from $28.52 a sh are on D ecem ber 31, 1943, to $30.35 p er share a y ear later. The corporation’s n et earnings from c u rre n t operations increased to $5,272,114 from $4,765,128 in 1943. Ag gregate reserves for contingencies in creased from $8,851,786 at th e close of 1943 to $10,612,219 at end of 1944. F o r the first tim e in the h isto ry of th e com pany, consolidated deposits ex ceeded a billion dollars and at th e yearend w ere $1,129,317,272, of w hich $226,592,622 rep resen ted w ar loan de posits. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 19^5 OUR 50th YEAR 49 Madison F ive directors w ere elected to suc ceed them selves on the board of direc tors of th e Security B ank and T ru st Company, Madison, South Dakota. T hey nam ed th e follow ing officers for th e com ing year: W. M. W illy, president; J. A. Robson, vice president; E. J. D irksen, vice president; F. H. E lbert, cashier; Nellie A m ert, J. A. D eragisch and Gladys Campbell, as sistan t cashiers. SOUTH D A K O T A NEWS H. R. KIBBEE, JR. President Mitchell A cting Secretary LO IS J. HALY O R SEN GEORGE M. STARRING Secretary-Treasurer Huron ( I n the S e r v ic e ) New Superintendent of Banking V erne W. Abeel, P ierre, v e te ra n as sista n t to th e state b an k in g su p e rin tend en t, has been n o m inated by Gov ern o r S harpe to succeed E rlin g Haugo, Sioux Falls, as su p e rin te n d e n t of banks. A form er Sioux F alls resid en t, Mr. Abeel joined th e ban k in g d ep artm en t in 1925 as a special exam iner and auditor, a post he held for 10 y ears before becom ing a ssista n t to th e su p er in te n d e n t and con tin u in g as exam iner. He w as born in C enterville, is m a r ried, and th e fa th e r of two d aughters. In Sioux F alls he w as a b an k em ploye and w as later associated w ith P. G. H onnegger, referee in b an k ru p tcy . H augo announced his resig n atio n in Novem ber, a fte r serv in g tw o and a half te rm s follow ing ap p o in tm en t bv G overnor H arlan J. Bushfield in 1939. Forum and Seminar Meeting T he Sioux F alls ch ap ter of th e A m er ican In s titu te of B anking, u n d er th e direction of L orin Shoop, com m ittee chairm an, sponsored a forum and sem i n a r m eeting last m onth, held in the “assem bly room ” of th e C arp en ter Hotel. À 6:30 d in n er w as served to m em bers and invited guests frnm th e Sioux F alls b an k s and b an k s in s u r rou n d in g tow ns of Baltic, B randon, Canton. P a rk e r and V aliev Springs. Nels V. Swenson, U. S. In te rn a l R ev enue agent, w as g uest sneaker, talk in g on “Changes in 1944 R evenue Act.” M. I. Orms, South D akota vice p resi den t for th e N ational A ssociation of B ank A uditors and C om ptrollers, b rief ly outlined th e purpose of th a t o r ganization and told th e group of plans for organizing a conference in th e Sioux F alls area. Bowdle F. G. Grosz, vice president, Bowdle S tate Bank, Bowdle, South D akota, says in a re p o rt on conditions in his com m unity d u rin g th e p ast y ear and how th in g s look to him th is y ear: “W e had a good y ear in 1944; had to w o rk a little h ard er, m ade a good profit, b u t th e labor situ atio n is bad, and p erh ap s will rem ain so for th e duration. “The farm ers all m ade good m oney, and I believe th ey have m ore live stock on th e farm th a n th ey ever had. C hattel m ortgages are g ettin g less all th e tim e, considerable land is sold and m ost of it is paid in cash. L and values are higher, b u t are still reasonable. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Im proved land is selling from $20 to $25 p er acre; unim proved about $18 to $22. “The labor situ atio n on farm s is go ing to be v ery bad if all 2-C’s have to go to service, and I believe th is will re su lt in considerable land not being farm ed in 1945. I also believe th a t som e of th e older farm ers w ill quit if th e ir last boy is tak en aw ay from them . “All business firm s rep o rt a good year, and they feel th a t th ey w ill have a little m ore m erchandise to sell in 1945, depending, of course, on th e w ar.” G ary The G ary State B ank of Gary, South Dakota, a new in stitu tio n , opened for business last m onth, w ith a capital of $25,000 and su rp lu s of $5,000. T he offi cers of the new b ank are: A nton W alden, president; S. R. Law, vice p resident, and E. L. Lohr, cashier. Estelline The F arm ers State B ank of Estelline, Estelline, South Dakota, a conver sion of the F a rm e rs N ational B ank of E stelline, opened for business as a sta te bank last m onth, w ith a capital of $25,000 and a su rp lu s of $10.000'. Officers are: F red Beskow, president; A. J. Boeder, vice president; W. K. Johnson, cashier, and L aurence Gratz, a ssistan t cashier. Vermillion A rth u r H. W inter, P arker, South Da kota, has been elected vice president and director of th e Citizens B ank in V erm illion, South Dakota, it w as an nounced by R ay G. Stevens, president. Mr. W in ter w as cashier and a direc to r of th e P a rk e r State Bank. R esources of th e V erm illion bank, according to th e last statem ent, totaled $1,563,155. Colome Stockholders of the Citizens B ank of Colome, South Dakota, held th e ir an n u al m eeting last m onth. Officers of the ban k for th e year are: Roy E. W oolhiser, president; A. C. Stenson, vice p resident and cashier; M argaret Hoffine, a ssistan t cashier; Gae Deahn, teller, and E sth e r K ahler, bookkeeper. Mitchell At a m eeting of directors of the M itchell N ational Bank, M itchell, South Dakota, all officers w ere re elected. On th e board of directors are George F redericks, F. J. H errick, H er b ert E. H itchcock, M. F. P atton, J. M. P atto n and B radley Young. Rapid City Roy Dean, H. J. D evereaux, A. E. Dahl, W. E. Shoberg and E arl K eller w ere renam ed to the board of directors of the R apid City N ational Bank, R ap id City, South Dakota, a t th e annual m eeting of the stockholders last m onth. Follow ing th e stockholders’ m eeting, th e directors re-elected Mr. Dean as ch airm an of th e board; Mr. Dahl, p resi dent; H. J. D evereaux, vice president; Mr. Shoberg, cashier; Mr. K eller, as sista n t cashier, and increased the staff by electing Miss F ran cis V incent, w ho has been w ith th e bank since its open ing in 1934, to a ssistan t cashier. At p resen t she is in charge of loans and drafts. Pierre Stockholders of the P ierre N ational Bank, P ierre, South Dakota, at th eir reg u lar m eeting last m onth elected C urtis B. M ateer to th e board of di rectors as a new director of the bank. The board now includes E. W. Ste phens, F. M. Rood, R. Y. Bagby, H. R. H orner, F. R. H arbaugh, K arl Gold sm ith, C urtis B. M ateer, J. R. McK night and W alter H. Burke. Mr. M cKnight and Mr. B urke w ere re-elected as p resident and cashier, re spectively, and Mr. M ateer w as re elected a ssistan t cashier. The board elected K arl Goldsm ith to the position of vice p resid en t of the bank, to succeed the late C harles H. B urke. The balance of the b ank staff rem ains unchanged. Alpena Former Banker Dies A t th e annual m eeting of th e stock holders of th e B ank of Alpena, South Dakota, the following directors for the com ing year w ere elected: R. S. Cook, C harles B ram m er, J. E. Shull, M ark Atwood, W. J. Busse, O. M. Pederson, and A. J. B righam . Also elected w ere M ark Atwood, secretary and cashier; Doris Groenhoff, assistan t cashier; Mr. Cook is president, and Mr. B ram m er, vice president. F u n e ra l services w ere held in th e M ethodist C hurch at B urke, South Dakota, for W illiam M iller Pigott, w ho passed aw ay last m onth. Mr. P igott w as in terested in civic affairs and was a form er vice p resident and a stock holder of the B urke S tate B ank and w as secretary of th e F arm ers Co-oper ative G rain and Livestock Com pany from th e tim e it w as organized un til his death. Northwestern Banker February 1945 50 • S O U TH Kiwanis Head A t a recen t reg u lar K iw anis m eet ing, Floyd W. B unday, cashier a t th e F arm e rs and M erchants Bank, H uron, South Dakota, accepted th e p re sid e n t’s pin and gavel. D A K O T A NEWS te rs to serve an increasing n u m ber of p atrons, Duffy said. In o th er changes in th e U nion Sav- Sioux Falls News of w n iia m c. D uffy as p resid en t and tr u s t officer and plans for m oving to larg er q u a rte rs w ere announced follow ing th e an n u al m eeting of d irectors of th e U nion Sav ings Bank. On Ju ly 1st, th e b an k w ill tak e pos session of office space in th e Sioux Falls Gas Com pany building, now oc cupied by th e W ar M anpow er Com m ission, th e U. S. E m ploym ent Service and th e Collector of In te rn a l Revenue. W ith th e elevation of Duffy to the presidency of th e bank, C. A. Christopherson, fo rm er p resid en t and execu tive m an ag er of th e South D akota W ar F in an ce com m ittee, becom es ch airm an of th e b a n k ’s b oard of directors, a new post. M oving of th e b an k from its p resen t location is n ecessitated by rapid g ro w th an d th e need for larg er quar- E l e c t io n W IL L IA M C. D U F F Y B ecom es President and T rust Officer ings staff approved by th e board of directors, H. O. E n gen , form erly cash ier, w as prom oted to th e office of vice p resid en t and cashier. Two tellers, J TO EXECUTIVE OFFICERS It is seldom we address ourselves to executive officers of banks thru an advertising medium, but we do so now in support o f a remark made to us by the head o f the Bookkeeping Depaitment in a medium sized bank concerning the sorting and filing o f checks. He said,"Our senior officers are aware of the difficulty we have with illegible signatures but they are somewhat re moved from actual contact with the problem as it exists today and, there fore, they do not actively support our contention that customers must be sold on the idea of having their names printed on their checks.” Perhaps this is true. When you top men sorted checks years ago maybe you knew signatures, but today the youngsters have to read them, so why not run a test today and see just how many they can’t read. See how much time they waste getting them right. Determine how much their work could be lightened if they could look at printed names instead o f scrawls. If you will do this you can’t help but lend your enthusiastic support to the Personalized Check program. You will find it pays off in time saved and in more accurate operations, and you will find, too, that the customers are receptive. The program won’t click unless you get behind it, but if you give it that first push it will keep rolling. We also can help by furnish ing your people with counter signs, lobby posters, statement enclosures and a top notch check package. Have your "sales manager” write us for complete information. • E. L. M elloon and N. W. W ilson, w ere prom oted to th e position of a ssista n t cashier, joining R, E. A rm strong, w ho is on m ilitary leave of absence. All changes w ere m ade effective im m ediately. T he list of directors of the U nion Savings B ank rem ained u n changed. Two o th er changes w ere announced following an n u al d irecto rs’ m eetings in Sioux Falls. At the N ational B ank of South D ako ta, F rank J. Cinkle w as prom oted from cashier to th e position of vice p resi den t and cashier. Cinkle has been associated w ith th e bank for 19 years, and has been cashier for nine years. T he o th er change w as m ade by di rectors of th e N orthw est S ecurity N ational Bank, w ho announced th e prom otion of M orris W in ter to th e position of a ssistan t m anager of the b ran ch b an k a t B rookings. A recen t grad u ate of th e U n iversity of South Dakota, W in ter is the son of G. C. W inter, cashier of th e F irst N ational B ank at P ark sto n , S. D. All officers and directors w ere re elected at th e F irs t N ational B ank and T ru st Com pany m eeting, according to W illiam W . Baker, president. Two w ell-know n m idw estern b an k ing officials gave recen t addresses in Sioux Falls. T hey w ere G. Sidney H uston, St. Paul, m anager of th e in vestm en t research d ep artm en t of the F irst B ank Stock C orporation and one of th e au th o rs of th e widely-cliscussed “Tw in City T ax P lan,” and P au l W . M cCracken, d irector of research for th e F ed eral R eserve B ank of M inne apolis. H uston, speaking a t a m em bership m eeting of th e Sioux Falls C ham ber of Commerce, expressed belief th a t li m ited g overnm ent price control m ay be necessary afte r th e w ar, to control inflationary pressures. B ut w hile he saw a tendency for th e price of m an u factu red products to rise, th a t of farm products w ill decline, he said, “w ith th e e x ten t and sev erity of th e drop dependent upon our ability to find o ut lets for a g ricu ltu ral surp lu ses.” M cCracken spoke on th e in v itatio n of Ralph M. W atson, p resident of the N orthw est S ecurity N ational B ank and Ja n u a ry program ch airm an of the R otary Club. A Sioux F alls pioneer, H ans A nder son Lodm ell, died last m onth a fte r a long illness. He w as th e fa th e r of Adolph Lodm ell, a ssistan t tru s t officer of th e N o rth w est Security N ational Bank. A re tire d contractor, Mr. Lod m ell had lived in Sioux Falls since 1893. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February Í945 OUR 50th YEAR 51 • S O U TH A n nouncem ent w as m ade th a t th e N o rth w est B ancorporation w ould hold a South D akota sp rin g conference in Sioux F alls early in F eb ru ary . E xecu tive officers from th e affiliated b an k s w ere to attend. E xpected to be a h ig h lig h t of th e m eeting w ill be a ro u n d table forum , w h en re p re se n ta tiv es of various in d u stries of Sioux F alls w ill discuss th e ir p o stw ar business p ro s pects. On J a n u a ry 23, m em bers of th e Sioux F alls ch ap ter of th e A m erican In stitu te of B anking w ere given an “inside view ” of th e problem s of com p u tin g an d collecting incom e tax, ac cording to L ou is H agen, p resid en t of th e c h ap ter and te lle r a t th e N o rth w est S ecurity N ational B ank. A t a d in n er m eeting, th e m em bers h eard a ta lk given by N. B. Sw enson , field rep re se n ta tiv e of th e in te rn a l rev en u e dep artm en t. D A K O T A NEWS Besides Mr. M acgregor, Jo h n B u r gess and Clarence E. D rake retire d as vice presidents, having reached th e b a n k ’s retirem en t age of 65. Guaranty Trust Promotions E ugene W. Stetson, chairm an of the board of G uaranty T ru st Com pany of New York, announced th a t at th e an nu al m eeting of the board of directors, D avid E. L ynn, W illiam F. Cost and W alter C. B aker w ere appointed vice p residents of th e com pany. • The following o th er appointm ents w ere m ade at th e sam e m eeting: K ent G. Colwell, form erly a ssistan t m an ager, foreign departm ent, now second vice president; L aurence E. Dalton, form erly assistan t treasu rer, now sec ond vice president; M anuel M artinez, form erly chief clerk, now second vice president; Jo h n L. Tim oney, form er ly a ssistan t treasu rer, now a ssistan t m anager, foreign departm ent. Lt. T hom as S. H arkison, Jr., arm y pilot p reviously listed as m issing in action over th e w e ste rn front, w as killed in action, according to w ord from th e W ar D ep artm en t received by his fath er, T. S. H arkison, p resid en t of th e N ational B ank of South Dakota. Based in F rance, Lt. H ark iso n w as pilot of a P-47 T h u n d erb o lt w ith th e 9th A ir Force. He w as 21 y ears old, a W ashington H igh School g rad u ate and fo rm er stu d e n t a t South D akota State College, B rookings. He en tered th e arm ed forces in F eb ru ary , 1943, going overseas last Septem ber. a 55-year-old tradition fo r N O RTH W ESTER N N A T IO N A L P R O M O TIO N S friendly, courteous service (C ontinued from page 44) ville A. R. K rogness, a ssista n t cashier, and S um ner Sinclair, auditor. O ther prom otions included th e ele vatio n of Jo sep h D. H usbands, from a ssista n t vice p resid en t to vice p resi den t an d cashier; Floyd E. Sim ons from a ssista n t vice p resid en t to vice president; C harles E. H arm on, H e r m an P. Meder, and H a rry L. B ergquist from a ssista n t cashiers to a ssista n t vice presidents. E d w ard D. Stowe w as p rom oted from a ssista n t secre ta ry to a ssista n t vice p resid en t of th e tr u s t d ep artm en t, an d Goodrich L ow ry left th e tr u s t d e p a rtm e n t to becom e a ssista n t cashier in th e com m ercial d ep artm en t. L eo n ard L. B erglund w as prom oted from a ssista n t m an ag er of th e Lake S treet Office to a ssista n t cashier of th e m ain office. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Since 1889, three generations o f customers have com e to know the friendly and com petent service o f The Northern Trust Company. An under standing place to do business, this bank has grown apace with Chicago and the great middle west. The Northern Trust Company invites the inquiries o f banks that may be seeking a Chicago correspondent. THE NORTHERN TRUST COMPANY N O R T H W E ST CORNER LA SALLE A N D M ON R OE STREETS, CHICAGO Member Federal Deposit Insurance Corporation ★ ★ Northwestern Banker February 19^5 52 NORTH D A K O T A NEWS A. C. IDSVOOG President Grafton Kindred A t a m eeting of th e board of direc tors of th e K indred S tate B ank, K in dred, N orth Dakota, last m onth, Lt. Jo h n G. Ottis w as nam ed p resident, replacing his father, Jo h n Ottis, w ho held th a t position at th e tim e of his death. M. G. K ruse w as re-elected vice president. At a m eeting of th e stock holders of th e bank, Mrs. D orothy S. K ruse w as elected a m em ber of th e board of directors. Valley City In V alley City th e volum e of b an k debits in December, 1944, w as 7 p er cent above those of Decem ber, 1943, and th e cum ulative total (Ja n u a ry th ro u g h D ecem ber) of 1944 w as 19 p er cent above th a t of 1943. The volum e of b an k debits in N orth D akota was 7 p er cent above those of a y ear ago, w hile th e to tal for th e year 1944 w as 14 p er cent above th a t of th e corresponding period of a y ear ago. State Owned Bank Head H arold C. Bowers, R egent, N o rth Da kota, b an k er last m o n th w as nam ed m anager of th e state-ow ned B ank of N orth Dakota, B ism arck, succeeding F ra n k A. Vogel. C ashier of th e F irs t State B ank at R egent since 1924, Mr. Bow ers w as to take over as m anager of th e B ank of N orth D akota F e b ru a ry 1st. Mr. Vo gel has been m an ag er of th e b an k since 1937, w hen he w as appointed to the position. N o rth D akota’s state-ow ned b an k m ade a n e t profit of $328,759 d u rin g th e fiscal y e a r from J u ly 1, 1943, to Ju n e 30, 1944. T he $328,759 n e t profit for th e B ank of N o rth D akota is for all d ep artm en ts and re su lts from a n e t profit of $285,519 by th e b an k in g d ep artm en t, $43,622 for th e farm loan collection de partm en t, and a loss of $382 by th e farm buildings fire and tornado in s u r ance d e p a rtm e n t o perated by th e bank. Leaves North Dakota A. F. B ader left his post a t W ahpeton, N orth Dakota, as a ssista n t cashier of th e C itizens N ational B ank last m onth to ta k e a sim ilar position w ith the M urray C ounty S tate B ank, Slay ton, M innesota. Bismarck B ism arck’s b an k debits for last De cem ber w ere 19 p er cen t above those for Decem ber, 1943, according to th e Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 194-5 C. C. WATTAM Secretary Fargo g reatly enlarged, said Clarke B assett, ban k president. Mr. M cLellan g raduated in 1939 w ith a law degree from th e U n iversity of N orth D akota and becam e associated w ith th e M erchants B ank th a t sam e year. T here u n til 1942, he joined th e F ed eral B ureau of Identification, serv ing at W ashington, N ashville, T en nessee, and o th er localities. O ther officers of the M erchants are: F ra n k R. Scott, ch airm an of th e board and tru s t officer; C. H. Olson, vice president; W. R. B raseth, a ssistan t re p o rt of th e N inth F ed eral R eserve Bank. The yearly re p o rt show ed clear ings for 1944 w ere 10 p er cent above those for 1943. Grand Forks The volum e of ban k debits in G rand F o rk s in Decem ber, 1944, w as 23 p er cent above th a t of Decem ber, 1943, and th e cum ulative to tal (Ja n u a ry th ro u g h D ecem ber) of 1944 w as 29 per cent above th a t of 1943. B ank debits for th e en tire N inth F ed eral R eserve D istrict for D ecem ber w ere 2 per cent above th e sam e 1943 period, w hile figures for th is period are 7 p er cent g reater th a n th e id en ti cal 1943 period of tw elve m onths. G reater G rand F o rk s b an k resources increased $6,884,657 in th e y ear ending D ecem ber 30, 1944. w hile deposits w ere u d $6,860,938. Minot B ank deposits in M inot clim bed $5,106,123 d u rin g 1944 to a $21,556,973 to ta l at th e end of th e year, in th e face of an an n u al volum e of business activ ity regarded as probably th e g reatest in th a t city’s history. In a three-year period, M inot bank deposits show ed a gain of alm ost 293 p er cent. At th e end of 1941 deposits in th e th re e banks am ounted to $7,372,288. Fargo News T WO new officials w ere elected and a th ird prom oted a t th e an n u al m eeting of th e M erchants N ational B ank and T ru st Com pany, of F argo in line w ith plans for extensive ex pansion in in stallm en t credit facilities. T hese w ere th e only personnel changes voted a t m eetings of F arg o ’s fo u r national banks. N ew officers of th e M erchants are A. B. F itzloff, as m anager of th e con su m ers’ finance d ep artm en t, a n d A drian M cl/ellan, a form er tru s t offi cer, w as prom oted to assista n t cashier. Mr. Fitzloff has h ad extensive expe rience in th e b an k in g an d finance busi ness and fo rm erly w as associate m an a g er an d cred it m anager w ith th e W. W. W allw ork Company, F argo autom obile concern. U nder his direction th e con su m ers’ finance d e p artm en t w ill be W . R. B R A S E T H tru s t officer; R yan C. H arrington, cash ier; D. W . B uckm an and E. W . A nder son, a ssistan t cashiers, and W . B. P earson, auditor. Officers of o th er F argo banks are as follows: F irs t N ational B ank an d T ru st Com pany— F . A. Irish , chairm an; G. H. N esbit, president; H. D. Crosby, vice p resid en t and tru s t officer; G. W. Jenson, vice president, cashier and a ssistan t tru s t officer; G. H. May, assista n t cashier and a ssistan t tru s t officer; R. J. Schm allen, M. W . Loffer, and M. C. F rem stad , a ssistan t cashiers. D akota N ational B ank — W illiam Stern, president; R. H. B u tterw ick, vice president; O. J. B oyle, cashier; H. U. Johnson, a ssistan t cashier. F argo N ational B ank —E. L. Shaw , president; T. D. H u ghes, vice president; Li. E. Sm ith, cashier; W . D. D w ight, assista n t cashier. No personnel changes w ere m ade at an n u al m eetings of tw o M oorhead, M innesota, banks, th e F irs t N ational an d A m erican State, b u t a t th e AmeriOUR 50th YEAR 53 • N O R TH can S tate som e prom otions w ere a n nounced. O. M. A lm e, p reviously cashier, w as nam ed executive vice p resid en t of th e la tte r in stitu tio n , O. M. W estlin w as app o in ted cashier and C. R. E u ren and P. V. D w yer w ere nam ed a ssista n t cashiers. Officers an d d irecto rs are: L eo Johnson, chairm an; F. M. Scheel, president; C harles P eterson an d Memfred N elson, vice p residents. Cash and su rp lu s w as raised from $125,000 to $150,000. A t F irs t N ational all officers and directors w ere re-elected as follows: J. H. D eem s, p resident; O. B. Rusn ess, executive vice p resident; Max Goldberg, vice p resident; A. T. N elson, D A K O T A NEWS fo rm erly a ssistan t vice president, and H ow ard B. Sm ith, form erly corporate tr u s t officer. Mr. McCall w as born in C hattanooga, T ennessee, and is a g raduate of th e McCallie School, Chattanooga, and the U n iversity of V irginia. Follow ing his g rad uation from college in 1928 he becam e associated w ith th e Chemical B ank & T ru st Company. Mr. Sm ith g raduated from New York U n iversity in 1910 and entered the b an k in October, 1928, as a tru s t officer. Anderson Becomes Chairman A rch W. A nderson w as elevated from p resid en t of California B ank to th e F. A. Irish, J. T. Lam b and O. C. Mar new ly created post of chairm an of th e tinson, directors; L aw ren ce M auritson, board of directors, and F ra n k L. King, cashier, an d C. R. Fridlund, a ssista n t cashier, also w ere re-elected. O. B. R u sn ess, executive vice p resi den t of th e F irs t N ational B ank of M oorhead, M innesota, h as been re a p pointed by th e city council as a m em b er of th e city police civil service com m ission, to serv e u n til F e b ru a ry 1, 1947. Clarence Jesten , in su ran ce m an, w as reap p o in ted to serv e u n til F e b ru a ry 1, 1948. O. C. M artinson, a d irecto r of the F irs t N ational B ank, is a holdover m em ber w hose te rm expires F eb ru ary • form erly executive vice president, w as elected president. The jo in t action w as tak en by the board of directors in its organization m eeting follow ing th e an n u al sh are h olders’ m eeting, at w hich all directors w ere re tu rn e d to office. B oth A nderson and K ing are well know n in national ban k in g and in d u strial circles and both have had a w ide background of financial experi ence. A nderson w as elected p resid en t of California B ank in 1939 and d u ring th e ensuing y ears th e b an k has en joyed a consistent and h ealth y grow th. K ing becam e executive vice p resi den t tw o y ears ago, com ing from Chi cago, w here he w as com ptroller of the C ontinental Illinois N ational B ank and T ru st Company. M O D E R A T E -S IZ E D N ew Y o r k b an k w h ere yo u w ill alw ays fe e l at hom e and y o u r b u si ness w ill be w ell h an d led . 1, 1946. G radually su rm o u n tin g a m onu m en tal task, th e staff of th e Dakota N ational B ank of Fargo has handled w ith in th e p ast m o n th 31,504 checks re p re se n tin g reb ates to electric p a tro n s of th e N o rth e rn States P ow er Company. T he reb ate, o rdered by th e N o rth D akota public service com m ission and th e su p rem e c o u rt as a re su lt of an a d ju stm e n t of ra te s in th e period, M arch 5, 1938, to O ctober 31, 1944, totaled $920,117.80 to electric consum ers. The am o u n t included refunds, sta te sales ta x an d in terest. M arie P age, d a u g h te r of Mr. and Mrs. J. L. P age of Fargo, N. D., w hose fa th e r fo rm erly engaged in th e b a n k ing b u siness a t W esthope, N. D., is aw aitin g a USO assig n m en t to Brazil, w h ere she w ill be an a ssista n t in p ro g ram p lan n in g an d recreatio n al activ ities. Two Vice Presidents Percy H. Jo h n sto n , ch airm an of th e Chem ical B an k & T ru st Com pany, has announced th e ap p o in tm en t as vice presid en ts of H ow ard W. McCall, Jr., OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T he CONTINENTAL B A N K & T R U S T C O M P A N Y o f NEW YORK 30 BRO A D S T R E E T , N E W Y ORK MEMBER FED ER AL DEPOSIT INSU R A N C E CORPORATION fh S ig n e d • s e a l e d • a n d ...• * . . . . D ELIV ER ED .................... Send those orders— mail those A t * letters— in Tension Envelopes. They seal quickly and stay sealed, assuring safe delivery whether they travel by land, sea or air. TENSION KNOWS HOWI Tension Envelope Corp. BERKOWITZ ENVELOPE CO. 1912 Grand Ave., Phone 4-4126, Des Moines 14, Iowa Northwestern Banker February 1945 54 Send Us Your Commodity Loans for 89 Years __ SOUND BANKING SERVICE U N IT E D ST A T E S R ational B A N K of Omaha m e m b e r N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 1945 f d i c J OUR 50th YEAR 55 W. R. S cribner is p resident and cashier; P e rry Johnson, vice president, and N orm an E. Clark, now in m ilitary service, will become cashier on his re tu rn from service. The b ank has a capital stock of $17,300, a su rp lu s fund of $3,000, and an undivided profit account of $1,000. D irectors are G. E. Jones, Mr. Jo h n son, Otto W agner, George Owens, J. M. Peterson, and Mr. Scribner. NEBRASKA NEWS Cozad Banker Dies EDGAR M cB R ID E President B lue H ill Chair of Banking A com m ittee of m em bers of th e Ne b ra sk a B an k ers A ssociation, consisting of Otto Kotouc, H um boldt; O. A. Riley, H astings, and C. C. N eum ann, Oak land, recom m ends th a t th e A ssociation establish a C hair of B anking a t th e U n iv ersity of N ebraska. T he donation from th e 400 N ebraska b anks could be m ade to th e U n iv ersity of N ebraska F ound atio n , and w ould be a deductible incom e ta x item . M em bers of th e Ne brask a A ssociation are asked to give serious consideration to th e proposal. Heads C . of C . V incent E. R ossiter, cashier of th e B ank of H artin g to n , N ebraska, w as elected p resid en t of th e H artin g to n C ham ber of C om m erce at its an n u al d in n er m eeting last m onth. M ajor Jo h n A. L ivingstone has gone overseas and his w ife and tw o d au g h ters w ill m ake th e ir hom e w ith Mrs. L iving sto n e’s p aren ts, Mr. and Mrs. E. W. R ossiter, for th e duration. Mr. R os site r is p resid en t of th e B ank of H artin g to n . Columbus A t th e o rganization m eeting of th e C entral N ational B ank, Colum bus, N e braska, board of d irecto rs held last m onth, M innie Asche w as elected a ssista n t cashier, as w ell as all o th er officers being reelected to fill th e sam e positions th e y held at th e end of th e year. Miss Asche joined th e b an k as secretary to th e presid en t, and p rio r to h e r election as a ssista n t cashier she served as discount teller. Liberty T. J. Poague announces th a t since he and Mrs. Poague are unable to con tin u e o peration of th e S tate B ank of L iberty, L iberty, N ebraska, stock holders of th e b an k have voted its liquidation. R esources of th e in sti tu tio n w ere over $375,000 and notes w ere sold to th e B eatrice S tate B ank at B eatrice. The citizens of L ib erty are looking for som eone to operate a b an k there. Allen The a n n u al m eeting of th e stock holders of th e Security State B ank of Allen, N ebraska, w as held last m onth. A lthough th is b an k is only one year old re p o rts show th a t it has m ade a v ery stead y and su b stan tial grow th d u rin g th e p a st year. The follow ing OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WM. B. H U G H E S Secretary Omaha seven m en w ere elected as th e board of directors for th e com ing year: W. T. Connell, A. L. W ilson, M. R. B u r gess, David T uning, M. M. M artin, C. H. Schroeder and R ubel H utchings. Auburn A t th e an n u al m eeting of th e A u b u rn State Bank, A uburn, N ebraska, held last m onth, th e follow ing officers w ere nam ed: F. E. W ells, president; Mrs. Adah B. W ells, vice president; R. W. D irks, cashier; W. S. Maclay, a ssistan t cashier. D irectors are: Mr. W ells, Mrs. W ells, Mr. D irks, W illiam Bohling and E. H. Ely. Crete The stockholders of th e City Na tional Bank, Crete, N ebraska, held th e ir an n u al m eeting and th e usual cash dividend w as voted for th e past year. The follow ing directors w ere elect ed: Jo h n R othm uller, Jo h n E. Mekota, Jo h n Sm ejkal, F. J. Stejskal, R obert K. Kuncl, H erb ert G. Sm ith and B. F. Aron. Officers are: Jo h n R u thm uller, p resi dent; H erb ert G. Sm ith, vice president; B. F. Aron, cashier. Madison Officers w ere elected at th e m eeting of directors of th e B ank of Madison, Madison, N ebraska, last m onth, and th e directors also voted to increase th e b a n k ’s su rp lu s from $17,500 to $20,000. Officers are J. J. DeLay, president; R. H. F reu denburg, vice president; E arl J. Moyer, vice presid en t and di rector; G. C. Benning, cashier; Alden W. Jones, assistan t cashier; E lizabeth Stephen, a ssistan t cashier; N. S. Strom , a ssistan t cashier; O. V. Scheer and Dr. H. R. P alm ateer, directors. St. Paul The Peoples State Bank, St. Paul, N ebraska, held its sem i-annual m eet ing last m onth, at w hich tim e Ed L. K olar w as elected th e new p resident of th e bank. T his m eeting also m arked th e fifteenth a n n iv ersary of the bank u n d er its reorganization. Carroll The F a rm e rs State Bank, Carroll, N ebraska, w hich has been organized to replace th e C arroll Co-operative association, w as scheduled to open last m onth, the first ban k Carroll has had since 1927. G. A. Matz, presid en t of th e F irst N ational Bank, Cozad, N ebraska, and a resid en t of th a t com m unity for nearly 60 years, passed aw ay at his hom e last m onth, at th e age of 81. J u n i o r News F rom the Nebraska J unior B ank e rs Association John L a u ritze n , E d ito r M illicent N eum ann, th e dau g h ter of C. C. Neumann, p resident of the F arm ers and M erchants N ational Bank, Oakland, N ebraska, and the sister of Chase N eum ann, vice p resi dent of th e sam e bank, w as m arried in Omaha last m onth to Lt. Charles W. T roupe of the U. S. A rm y A ir Corps. Mrs. T roupe had been help ing out in h er fa th e r’s ban k p rio r to h er m arriage. Jan e E lizabeth R obertson, d au g h ter of W allace R obertson, presid en t of the B eatrice N ational Bank, B eatrice, Ne braska, recently ch ristened th e “S. S. B eatrice” V ictory ship in California, w hich is an honor th a t certainly conies to very, v ery few people. M em orial services for Lt. Gene C. killed in action over F ran ce Ju ly 30th, w ere hald last m onth at St. A ndrew s Episcopal C hurch in Omaha. Lt. M eredith w as a pilot of a P-38 w ith the 8th A ir Force in E ngland. H e is survived by his wife, a daughter, Janice, his parents, Mr. and Mrs. H. C. M eredith and a sister, Bette, all of Omaha. Lt. M ere dith, prio r to his en listm en t in th e A ir Force w as em ployed by th e F irst N ational B ank of Omaha. M eredith, rep orted Lt. (j.g.) Joh n F. D avis, vice p resi dent of th e F irs t N ational B ank of Omaha, h ad an unexpected four-day leave at hom e prio r to C hristm as and so C hristm as w as celebrated a few days in advance at th e D avis’ home. Lt. Davis has been in th e A tlantic th e a te r service w ith th e arm ed guard. Northwestern Banker February 19J5 56 comes cashier of the Omaha bran ch , succeeding O. P. Cordill, tra n sfe rre d to O klahom a City, and W illiam D oran becomes assistan t cashier at Omaha. At th e ann u al m eeting of th e U nited States N ational B ank of Omaha, Cas per Y. Offutt w as advanced from tru s t officer to vice presid en t in charge of th e T ru st D epartm ent; E d w ard WT. L y man from assistan t cashier to a ssist a n t vice p resid en t in th e Com m ercial D epartm ent; H arold T. U eh lin g, from a ssistan t tru s t officer to tru s t officer, N E W d irectors elected by th e N o rth Side B ank of Om aha are Fred W. Thom as, Charles D. Saunders and John Lauritzen. Reelected w ere W. B. R oberts, R obert H all, and W. D. H osford, Jr. Mr. R oberts w as re elected p resid en t and Mr. H all vice presid en t and executive officer. De posits grew from $800,000 in Ja n u a ry , 1942, to $3,500,000 a t th e close of 1944. A $15,600,000 bond issue by th e Loup R iver (N ebraska) Public P ow er Dis tric t to cover a loan used to help p u r chase th e com m on stock of th e Ne brask a P ow er Com pany of Om aha by a non-profit group, b ro u g h t only one bidder. The jo in t bid w as m ade by Jo h n N uveen & Com pany, of Chicago, and B. J. V an Ingen & Com pany of New York. It w as tak en u n d e r advise m ent by Loup directors. T he re fu n d ing bid w as at 2% p er cent interest. Notice of th e bond sale was a d v er tised n atio n ally and a large nu m b er of req u ests for details w as received, Loup G eneral M anager H arold K ra m er of C olum bus, N ebraska, said. Thirty-tw o in v estm en t ban k in g houses f w ere sent inform ation concerning th e sale. The only bid w as from th e sam e in v estm en t house w hich p u rchased th e L o u p ’s original notes. Tom B erry, B elvidere, South D akota, w as reappointed a d irector of th e F arm Credit A dm inistration B oard of Om aha for a three-year term begin ning last m onth, it w as announced by FCA G eneral A gent N. G. K raschel, fo rm er governor of Iowa. W hen Ed Baird of th e C onservative Savings and L oan A ssociation of Om aha tu rn e d over to Omaha Post No. 1, A m erican Legion, th e keys to th e C entral Club B uilding, new hom e of th e Om aha Legion, m em bers of the house com m ittee of th e post w ere p resen t at th e cerem ony, including W allace E. Spear of th e F irs t N ational B ank of Omaha and D avid F. D avis of th e Omaha N ational Bank. L. H. E a rh a rt, vice p resid en t of th e F ed eral R eserve B ank of K ansas City, in charge of th e Om aha branch, an nounced th a t John K. F riedebach be C A SPE R Y. O F F U T T A dvanced to V ice President and H enry E. P ierpont, from perso n nel m anager to a ssistan t tru s t officer. Mr. Offutt has been w ith th e b ank since 1940, previously practiced law in Omaha. Before th a t he w as in th e diplom atic service as secretary of the legation a t Santiago, Chile, and later as charge d’affaires in Panam a. Mr. i r s t N a tio n a l B a n k o í O m ah a Oldest National Bank. From Omaha West Member Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 19b5 OUR 50th YEAR 57 L y m an has been w ith th e b an k since 1940 and fo rm erly w as w ith th e tr u s t d ep a rtm e n t of th e F irs t N ational B ank of Chicago. P vt. E rn est D yer Coad, 31, son of th e late J. F ra n k Coad, p resid en t of th e P ack ers N ational B ank of South Om aha, h as been listed as killed in action a fte r first being rep o rted m iss ing in G erm any. A C reighton U ni v ersity grad u ate, he w as a m em ber of th e R egional W ar P roduction B oard staff for 11 states before en te rin g th e service. People w ho ow ned N ebraska Pow er C om pany p re fe rre d stock w ere to be paid th e call price, $110 a share, u n d er p lan s of th e non-profit corporation w hich acquired th e com pany’s com m on stock. T his w as an nounced by Bernard S ton e of Om aha, p resid en t of th e n o n profit organization. He had announced e arlie r th a t his group, w hich now has con tro llin g in te re st in N ebraska P ow er, w ould call p re fe rred stock, and re tire bonds. H e said he h ad “received several in q u iries from p re fe rred stockholders abo u t th e price.” Mr. and Mrs. A lvin E. Joh nson a n nounced th e ap proaching m arriag e of th e ir d au g h ter, Miss M yrtle Louise Joh n so n , to P hilip H. Olson, M arines, son of Mr. an d M rs. H erm an Olson. Mr. Jo h n so n is p resid en t of th e Live Stock N ational B ank of Omaha. N ews of th e ap p roaching m arriag e w as giv en to frien d s of th e bride-to-be at a luncheon given by h e r m other. Miss Jo h n so n served as a P rin cess of Ak-Sar-Beh in 1941, w hen Mrs. C harles F o ste r B row n, Jr., now of N ew Y ork City (Alice Je a n n e tte M ey er) w as crow ned Queen, and L ieut. Col. W. B. M illard, Jr., now of W ash ington, w ho is on leave from his d u ties as vice p resid en t of th e Om aha N ational B ank, w as crow ned King. Clifford R ahcl m ade a C hristm as v isit w ith his p arents, Mr. and Mrs. J. C. Rahel. He atten d s th e U niversity of California at Los Angeles. His fa th e r is an Om aha in v estm en t banker. R oyal D. M iller, 69, head of th e new business d ep artm en t of th e Omaha OFFICERS FRAZER L. FORD President J. A. GREENFIELD Vice President HARRY H. MOHLER Vice President th o s. j . McCu l l o u g h Cashier M. E. BLANCHARD A ssistant Cashier LOUIS J. KOMER A ssistant Cashier are producing M eat for Victory. Please consult with us if we can assist you to finance them. S o u t h S t . J o s e p h , M o. “ O nly B ank in th e Y ards” Member Federal Deposit Insurance Corporation W e h av e the R IG H T T O O L S for Your Jo b ! Y o u w o u ld n 't th in k o f t r y in g to r e p a ir a w a t c h w it h a m o n k e y w r e n c h — n o r c a n y o u e x p e c t ju st a n y k in d o f b a n k i n g e x p e r i e n c e or e q u ip m e n t to p r o p e r ly s e r v e y o u r co rresp o n d en t b a n k i n g n eed s. " C ity N a t io n a l" h a s th e R IG H T T O O L S to d o th e jo b fo r y o u — th e s p e c i a l i z e d k n o w l e d g e a n d e q u ip m e n t , 31 y e a r s ' e x p e r i e n c e . leave from his d uties as vice p resid en t of th e U nited States N ational B ank of Omaha, re tu rn e d to his statio n in C incinnati, Ohio, a fte r a holiday visit in O m aha w ith Mrs. M allory and th e ir dau g h ters, Miss B arb ara and Miss A nn. . Bought and Sold Your Stockmen First St. Joseph STOC K YARDS I t W k N avy L ieu t. R ichard H. M allory, on BANKS N ational Bank, died recen tly a t an Om aha hospital afte r being strick en w ith a h e a rt attack as he w as en terin g F irs t M ethodist C hurch a t Om aha th a t m orning. A m em ber of the M asonic lodge and Scottish Rite, he w as also active in th e Cham ber of Commerce and o th er W ith " C ity N a t io n a l" a s y o u r c o r r e s p o n d e n t b a n k in K a n s a s C ity , y o u c a n b e s u r e y o u r i n t e r e s t s a r e b e i n g h a n d le d b y s k ille d w o r k m e n . Kansas City’s Favorite Bank Confidentially and with becoming dignity BANK E M P LO Y EES PLA C ED . 39 Y e a rs S a tis fa c to ry S e rv ice THE CHARLES E. WALTERS CO. OMAHA. N EB R A S K A OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C I T Y V 1 T I 0 V U B A N K f> T R U S T C O . IBtbt Grand ’" S X J X m B S f* I™» % Hi. Northwestern Banker February 19^5 58 • N E B R A S K A civic groups. survive. H is w ife and tw o sons Mrs. A rthur L. L oom is, w idow of th e Om aha in v estm en t b anker, re c e n t ly announced th e engagem ent of h er daug h ter, Miss N ancy E llen, to K arl W. Backus, of C edarsburg, W isconsin. T he b e tro th a l w as m ade know n a t a luncheon given a t th e Om aha club. P ictu res of th e couple w ere attach ed to individual gard en ia corsages, form ing th e centerpiece. One of th e first acts of th e new non profit corporation w hich acquired the N E WS N ebraska Pow er Company, w as a p ay m en t to retire debt. The action w as pay m ent of $134,275 to th e Loup R iver Public Pow er D istrict, for its assist ance in financing th e purchase. Of the total paym ent, $25,000 w as interest. P revious ow ner of N ebraska Pow er w as A m erican Pow er and Light, New Y ork holding com pany. ew elected at th e an n u al m eeting of the Om aha N ational Bank. Mr. A lbus form erly w as m anager of Y ork T r u st Co m pany Capital Funds Over $50,000,000 IO O B RO ADW A Y M A D IS O N A V E N U E A N D 4 0 T H STR EET TEN R O CK EFELLER PLAZA ★ BUY WAR BONDS ★ Member of the Federal Deposit Insurance Corporation Frisbie, S tate 4-H director. P urpose of th e aw ards, given for the first tim e in 1944, is to encourage beef produc tion. Two new a ssistan t cashiers, H arold K. A lbus and John M. Sperry, w ere The N • H A R O L D K. A L B U S JO H N M. SP E R R Y th e discount d ep artm en t and has been w ith th e b ank since 1926. Mr. Sperry has been a receiving teller. He has been w ith th e bank for 26 years, his en tire business career. P resid en t A lvin E. Joh nson of the Live Stock N ational B ank of Omaha, announced th a t he w ill renew his special cash and trip aw ards for the an n u al N ebraska 4-H show. The an n ouncem ent w as in a le tte r to L. I. 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 tio n a l B ank. George M. C u rtis served fo r 51 continuous y e ars and his b ro th er, Chas. F . C urtis, fo r 35 continuous y ears. A. C. (F re d ) Sm ith, son of A. G., cam e to th e ban k a f te r g ra d u a tin g fro m Y ale U n iv e r sity in 1899. H e w as w ith th e b a n k u n til his d e ath F e b ru a ry 26, 1930. F ro m 1917 to 1920 F re d served on th e -executive council of th e A. B. A. an d w as p re sid en t, Iow a B ankers A ssociation 1926-27. H is w ife, G race H u sto n Sm ith, a tte n d e d th e Iow a B a n k e rs ’ m eeting w ith F re d . I n its sev enty-five y ears of existence, only n in e p e r sons in all have filled th e offices of chairm an, p resid en t, a n d /o r cashier, viz.: A. L. Stone, A. G. Sm ith, A. C. (F re d ) Sm ith, G. L. (L ew is) C urtis, E . L. M iller, W . A. A n d e r son, E d w a rd M. W arn e r, O liver P . P e tty and J o h n H . N issen. F o u r th e re o f a re still serving as officer a n d /o r directo r. ’ ’ E dward M. W arner , P re si dent, C ity N a tio n a l Panic, Clinton, Iow a. "Express My Appreciation" “ H erew ith find enclosed a check fo r m y renew al su b scrip tio n to the N o rth w ester n B a n k er and to th e N eb ra sk a Io w a Panic D irectory. “ I also w ish a t th is tim e to express m y a p p re c ia tio n of the N o r th w ester n B ank er an d p a rtic u la rly th e e d ito rials by y our p u b lisher, C lifford De P uy. “ W ith best wishes fo r y our continued success. ’ ’ E . H . S u th er la n d , E x e c u tiv e Vice P resid en t, F ir st N a tio n a l Panic, P eem er, N ebraska. L fe T O O T L E -L A C Y THE KIND OF SERVICE YOU WANT—WHEN YOU WANT IT Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 19b5 OUR 50th YEAR 59 Edw ard A. Becker, senior vice p resi dent; AY. S. B attey, vice presid en t and cashier; H ow ard H adley, vice p resi den t and tru s t officer; F red S. A ldrich, vice president; E lm er D eK ay, assistan t cashier-com ptroller; H. E. L einberger, a ssistan t cashier; A. W . Griffin, assist a n t tru s t officer; G. A. B asel, a ssistan t cashier. A few changes w ere m ade in th e official staff of th e N ational B ank of Commerce. M. AVeil, w ho has been p resid en t continuously since th e bank w as sta rte d in 1902, w as renam ed. NNUAL m eetings have been held by Lincoln banks. R eports to stockholders in all cases revealed ex cellent financial condition w ith p ro s pects for th e fu tu re brig h t. T here w ere few changes in th e nam es of m en heading th e several financial in stitutions. A t th e F irs t N ational m eeting, Earl T. Luff w as elected d irecto r to fill th e vacancy caused by th e d eath of Paul H olm . O therw ise th e ro ste r rem ains as it w as for 1944: George TV. H olm es, president; P. R. E asterday, chairm an of th e board; H ow ard F reem an, executive vice p resi dent; L. C. Chapin, Stanley Maly, B. O. Cam pbell and E. U. G uenzel, vice presidents; Capt. A. C. Glandt, cashier; Clifford G. W eston and R. J. Becker, a ssista n t vice p residents; G. H. Crane and L yle F. Stonem an, a ssista n t cash iers. B. G. Clark w as reelected p resid en t of H avelock N ational B ank and P. B. K arnes and C. A. Spader w ere elected vice p residents. Mr. K arnes fills th e vacancy caused by th e d eath of O. J. H itchcock. D. R. F a w ce tt w as re elected cash ier and succeeds Mr. H itchcock as a m em ber of th e board. C ontinental N ational B ank directors re-elected T. B. Strain president. All o th er officers w ere ren am ed including C. W. B attey, executive vice president; A Besides Mr. W eil, th e officers of the b an k are B yron D unn, executive vice president; A lbert A. H eld, E. C. F o l som , and Ju liu s W eil, vice presidents; P aul B ogott, cashier. Glenn Yaussi w as prom oted to vice presid en t and tru s t officer. Mr. D unn has had this la tte r post for several years. Succeeding the late A\7. E. B arkley, C. C. C artney w as elected presid en t of U nion Bank. Joe H. B radley and C. H. W ear w ere reelected vice president and cashier, respectively. The th ree m ake up th e personnel of th e board. A bill to req u ire banks to cash checks at p ar w as filed in the N ebras ka legislature last m onth by Senator R. A. Babcock of Sidney, w ho p re dicted it w ould become one of the m ost hotly debated m easures of the session. Babcock said th ere are 154 banks in N ebraska w hich do not cash checks at par. Most of them are located in sm aller com m unities. Wahoo E lection of officers for th e F irst Na tional Bank, W ahoo, N ebraska, w as held last m onth. E. E. Placek, p resi dent; E rn e st H anson, executive vice president, and E vald C. Brodd, assist a n t cashier, hold th e sam e positions they held last year. Jam es L. K udrna has been m oved up to vice president from cashier and K enneth A. Tool has been m oved up to cashier. Mr. Tool is also a new m em ber of th e board of directors. Available at this bank is dependable and friendly service in Lincoln, for any correspondent bank., or indus trial or commercial account. C o n t in e n t a l R a t io n a l D 4 HK °f- LINCOLN M en a cer N A T IO N A L B AN K F ederal D e p o s it In su ra n ce C o r p o r a tio n S T . JO SEPH , M O . MILTON TOOTLE, JR. E. H. ZIMMERMAN R. E. WALES E. H. SCHOPP M e m b e r F e d e r a l D e p o s it P R E S ID E N T V ICE P R E S ID E N T C A SH IER ASST. C A SH IER I n s u r a n c e C o r p o r a t io n GRAHAM G. LACY MILTON TOOTLE, III FRED T. BURRI E. L. CRUME V IC E P R E S ID E N T V ICE P R E S ID E N T ASST. C ASHIER ASST. CA SH IER OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker February 19'ta i 60 LX A n n o u n c in g the establishment of a TRUST DEPARTMENT 111 k e e p in g with o u r re g u la r p o lic y o f p ro g re ssiv e ness and o u r e ffo rts to re n d e r o u r fr ie n d s the m ost com plete fin an c ial se rv ice p o ssib le , we an n ou n ce w ith p le asu re the o p en in g o f a T ru st D ep artm en t. W e in v ite yo u to a v a il y o u rse lf o f the fa c ilitie s o f this new , fr ie n d ly and a b ly m an aged departm en t. A ll fid u c ia ry m atters w ill he given p ro m p t, c a r e fu l and co u rteo u s attention. W. D EAN VO GEL V ice P re sid e n t and T ru st O fficer W. W A L L A C E K E E N A N A ssistan t T ru st O fficer ★ LIVE STOCK NATIONAL BANK The Bank o f F rien dly S e n d e e 2 1th A T N S T R E E T O M AH A, N E B R A S K A M E M B E R F . D . I. C. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 19'i5 OUR 50th YEAR 61 Iowa, th e follow ing d irectors w ere re elected: C. F. Besore, Jr., E. L. Klotz, H. P. K nuth, O. A. L angland and C. J. Obrecht. Officers are: Mr. Obrecht, president; Mr. K n u th and Mr. L ang land, vice presidents; Mr. Klotz, cash ier, and M. E. Jackes, assistan t cashier. N EW S W aterloo FRANK W A R N ER Secretary Des Moines R. R. B R U B A C H E R President Sioux City Kimballton A t th e an n u a l m eeting of th e Landm ands N ational B ank, a t K im ballton, Iowa, provision w as m ade for an in crease in d irecto rs of from five to seven. D irectors elected are: Dr. P. Soe, T hom as C hristensen, H. P. H an sen, A nker Hald, A. J. Nissen, Chris H ansen, and H. S. A am oth. The board elected Dr. P. Soe, p resident; H. S. A am oth, executive vice presid en t; V. H. T ru k k en , cashier; L eona Jo rg e n sen, a ssista n t cashier, and R eta H an sen, bookkeeper. Orange C ity W. S. Short, p resid en t of th e N o rth w estern State B ank, O range City, Iowa, resig n ed from th a t position a t th e a n nu al m eeting held last m onth, b u t was elected ch airm an of th e board. H e h as been associated w ith th e b an k for th e p ast 61 y ears and headed th e in s titu tion for 40 years. H. R ow enhorst w as elected president. He has h ad 26 y ears of b an k in g experience and has been w ith th e b an k since 1937, th e tim e of th e m erg er w ith th e Sioux C ounty Savings B ank. H. C. M oret, w ho has h ad 30 y ears in th e ban k in g field, has been w ith th e N o rth w estern S tate B ank since 1929 and is executive vice p re sid e n t and cashier of th e bank. O ther officers are: Mrs. N. Klein, as sista n t cashier; M itchell M oret, teller; Mrs. F lorence H eem stra, secretary; M arion W iersm a and Mrs. G enevieve Mouw, bookkeepers, and Reynold Schat, m an ag er of th e M aurice office. D irectors are: Mr. Short, P. D. V an O osterhout, H. De Groot, W. J. Cambier, T. E. Klay, M. D. V an O osterhout, Mr. R ow enhorst, A. J. V ande Steeg and H. C. M oret. New Hampton N ew ly elected officers at th e F irs t N ational B ank, N ew H am pton, Iowa, are: J. F. K ennedy, p resident; W alter J. K ennedy, vice p resident; H. W. Da- vid, cashier. A. C. K latt and H. J. Kolthoff w ere elected assistan t cash iers. J. F. K ennedy form erly w as cashier and W alter J. K ennedy and H. W. D avid w ere form erly a ssistan t cash iers. M. K ennedy, form erly president, becomes ch airm an of the board u n d er th e new arran g em en t. Waukon D uring th e year th e W aukon State B ank, W aukon, Iowa, re tire d $26,000 of its p referred stock and increased its capital from $80,000 to $100,000, w hich w as tak en o ut to profits. S. W. Ludek ing re tire d as president, afte r 48 y ears in th e b an king business, and C. H. M egorden w as elected to tak e his place. G uy W. E ato n w as re-elected vice president, w ith o ther officers as follows: E lm er A. Fogt, cashier; W. C. K iesau and Leo L. Samek, assistan t cashiers, and Nellie Beall, teller. Di recto rs are Mr. L udeking, Mr. E aton, Mr. M egorden, Mr. F ogt and Sherm an H art. Holstein A t th e an n u al stockholders’ m eeting of th e H olstein State Bank, H olstein, L. A. Rowland, vice presid en t and general m anager of the tra c to r section of Deere & Company, and d irector of th a t com pany, w as nam ed to th e board of directors of th e W aterloo Savings Bank, W aterloo, Iowa, at th e 44th an nual stockholders’ m eeting. Claude M. Cheney, presid en t of the W aterloo, Cedar Fails & N o rth ern R ail road Company, w as elected to the board of directors for th e N ational B ank of W aterloo, follow ing th e an nu al stockholders’ election. Mr. Cheney replaces A. H. Head. At th e directo rs’ m eeting of th e Peo ples Savings Bank, W aterloo, th e fol low ing officers w ere nam ed: G. E. Albee, president; J. P eter Olesen, vice president; W. A. Dewees, cashier, and R aym ond C. Baie, assist a n t cashier. Dike At th e sixth ann u al m eeting of th e stockholders of the Iow a Savings Bank, Dike, Iowa, held last m onth, all m em bers of th e board of directors, con sisting of A. J. B urk, Lee C handler, Chas. S. M cK instry, H erm an Nielsen, Glen J. Stew art, Jen s G. T huesen and G ustav T reim er, w ere re-elected for an o th er year. All officers w ere also re-elected, and p resen t officers and em ployes now consist of th e following: H erm an Nielsen, president; Glen J. Stew art, vice president; Lee C handler, cashier; M arvin Graves, assistan t cash ier, now on leave of absence w ith th e U. S. Navy; E velyn P etersen, a ssistan t cashier; Inez P ru in and L orraine K onken, bookkeepers and tellers. 1944 Facts A b o u t Iowa Iow a farm income, 1944........................................................................... $1,642,750,000 T otal income, all sources ..................................................................... $2,350,000,000 Hogs m ark eted ............................................................................................. 16,000,000 Corn (bushels), 1944 607,608,000 A cres in c o rn ................................................................................................. 11,252,000 A verage bushels p er acre, corn ............................................................. 54 A verage size farm (a c re s ) ....................................................................... 161.1 Soybeans (bushels),, 1944 ......................................................................... 42,580,000 Oats (bushels), 1944 ............................................................................. 144,270,000 Eggs ............................................................................................................... 4,084,000,000 Milk (pounds) . 44,000,000 V alue of m an u factu red products, 1944 ................................................ $1.200.000.000 S carborough ^ C o m pan y C o tm & eic’A fo 'T ih iiv k i F irst N a t io n a l B a n k B u ild in g , C h ic a g o OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H o r a c e A . S m ith , I o w a R e p r e s e n t a t i v e D e s M o in e s , I o w a Northwestern Banker February 19b5 62 • C ashier C handler’s an n u al re p o rt show ed th a t the b an k had enjoyed a n o th er successful v e a r w ith good e a rn ings and a consisten t g ro w th in assets. A fter five and one-half y ears of opera tion, deposits now to tal in excess of a m illion dollars and su rp lu s and u n d i vided profits have increased to equal th e capital stock. D irectors voted to tra n sfe r an additional $5,000 from u n divided profits to th e su rp lu s fund, and to pav a cash dividend of $6 p er sh are on F e b ru a ry 1, 1945. Randolph At th e an n u al m eeting of th e stock holders of th e R andolph State Bank, IOWA NEWS • R andolph, Iowa, th e follow ing officers w ere elected: J. O. D riskell, president; E d Blezek, vice president; J. S. Zdychnec, cashier, and M arian L. Zdychnec, assistan t cashier. Mr. Driskell, Mr. Zdychnec, W illiam K err, Mr. Blezek and Roy L onginaker are directors. Mr. D ris kell succeeds th e late L. O. L onginaker as president. B ank deposits increased around $200,000 in 1944 and the totals exceed $800,000. The reg u lar 5 per cent divi dend w as declared and the surplus fund w as increased $2,000. nett, Iowa, w as closed for one a fte r noon recently for th e fu n eral of one of its directors, C harles M. K arch. Mr. K arch w as vice p resid en t of th e b an k and at th e tim e of his death w as act ing as farm m anager for a nu m b er of farm s. Mr. K arch died in St. L ukes H ospital at Cedar Rapids, Iowa, after a brief illness. Oakland W. W. M cRorv resigned as p resid en t of the Citizens State B ank at Oakland, Alburnett Banker Dies The A lb u rn ett State B ank of Albur- THE NATIONAL BANK OF WATERLOO ------------------------------------ ★ ------------------------------------ STATEMENT OF CONDITION As of December 30, 1944 ------------------------------------------- ★ ------------------------------------------RESOURCES Cash and du e fr o m b a n k s________________________ $ L oans an d D isc o u n ts______________________________ U. S. G overnm ent S e c u r itie s______________________ State, C ounty and M u n icip al S e c u r itie s__________ O ther B o n d s ---------------------------------------------------------Stock in F ed eral R eserve B a n k _______________ O v e r d r a f t s -------------------------------------------------------------F u rn itu re and fix tu r e s ____________________________ 4 ,7 5 2 ,7 0 1 .0 5 2 ,2 4 0 ,5 7 6 .8 2 1 0 ,2 9 7 ,9 0 1 .3 8 2 ,8 4 4 ,8 9 0 .7 5 3 0 0 ,1 4 0 .9 9 1 5 ,0 0 0 .0 0 1 ,6 8 0 .8 8 8 ,4 5 9 .0 7 A ccrued In terest r e c e iv a b le _______________________ 6 0 .2 8 4 .6 2 $ 2 0 ,5 2 1 ,6 3 5 .5 6 LIABILITIES C apital stock — c o m m o n ----------------------------------------- $ 2 5 0 ,0 0 0 .0 0 S u rp lu s -------------------------2 5 0 ,0 0 0 .0 0 U n d ivid ed p r o fits ----------------------------------------------2 6 0 ,6 5 2 .1 8 R eserve fo r ta x es, in terest, e tc ____________________ 1 2 7 ,3 3 5 .5 2 In terested c o lle cte d b u t n ot e a r n e d _______________ 4 ,9 4 5 .2 6 D e p o sits ---------------------------------------------------------------- 1 9 ,6 2 8 ,7 0 2 .6 0 $ 2 0 ,5 2 1 ,6 3 5 .5 6 ★ O FFIC ER S J am es M. G r a h a m ........ President H . F . H o ffer ....Assistant Cashier Ch a s -. S. M cK in s t r y -.-.F ice Pres. *R. L. KiLGORE....Assisf<mf Cashier R. L . P e n n e ........................... Cashier A. J . B u r k ........ Assistant Cashier ‘ S erv in g w ith th e a rm e d forces. Member Federal Reserve System Member Federal D eposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 1945 W . W. M cR O R Y Com pletes 58 Y ears of Service Iowa, a t the an n u al m eeting last m onth. L. W. Ross w as elected to succeed him . D. F. Busse w as elected vice p resid en t and cashier, and Mrs. Mabel Evans, assistan t cashier. D irectors elected w ere: Mr. McRory, D. F. Busse, Dr. L. G. Dick, F. F. M cA rthur, D. L. Ross and L. W. Ross. In re tirin g as presid en t of th e bank, Mr M cRory com pletes 58 y ears of service. He cam e to Oakland in M arch, 1887, from his hom e in Canada, and began w ork in the bank. E xcept for a sh o rt period in the C orner Store, ow ned bv th e bank, he has been w ith th a t in stitu tio n ever since. He w as elected cashier in 1902, vice p resid en t in 1917, and p resident in 1926, succeed ing the late L. F. P otter. Mr. M cRorv w ill retain his in te re st in th e b ank and continue as a m em ber of the board of directors. Jesup The F a rm e rs State Bank, Jesup, Iowa, held its an n u al m eeting last m onth and the follow ing w ere elected as directors: W. W. Blasier, C harles F ru sh , H. J. Ganiere. E. H. P ark er, U. D. B lasier and C. E. Stew art. Aft on The Commercial State Bank. Afton, Iowa, re-elected all directors for the com ing vear. At th e d irecto rs’ m eeting held thereOUR 50th YEAR 63 This Money travels fast M o re th a n th r e e - q u a r te r s o f a s k th e ir c o m m is s io n m e n a c e n tu ry ’s e x p e rie n c e h a s to ro u te th e ir m o n e y th r o u g h ta u g h t us to a p p re c ia te th e th is B an k , th e ad v ice o f c re d it v alu e o f s p e e d in th e tr a n s g o e s to y o u o n th e day o f m is s io n o f p ro c e e d s re c e ip t. fro m The S to c k Y a rd s th e sale o f liv e s to c k in C h i p o s t o f f ic e is j u s t a c r o s s c a g o . W h e n y o u r c u s to m e rs th e s tre e t a n d n o tim e is lo st. We will be pleased to send you in struction cards to give your shippers. P TA e LIVE STOCK 'Aff/wna/BANK U N IO N STOCK YARDS ESTABLISHED 1868 D A V ID H. REIM ERS, Pres. Member Federal Deposit Insurance Corporation OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker F ebruary I9't5 64 • a fte r th e follow ing officers w ere chos en to serve for th e ensuing year: B. J. Parsons, p resident; C harles Kelly, vice presid en t and cashier; D orothy Brosn ah a n and V irginia Briggs, a ssista n t cashiers. M argaret H ook w as ap pointed as bookkeeper a t Afton. E. E. K irk h a rt w as again chosen as office m an ag er a t L orim or, and F r a n ces W inship his assistant. Washington Stockholders m et last m o n th and all m em bers of th e board of d irectors were re-elected a t th e N ational B ank of W ashington, W ashington, Iowa. Vice P resid en t C rone gave his a n nual re p o rt to th e stockholders, say IO W A NEWS • ing th a t at th e close of business De cem ber 30th th e deposits w ere $3,207,818, the largest in th e h isto ry of the bank. The total resources and liabili ties w ere given as $3,376,376. The usual dividend w as paid by th e bank. The su rp lu s fund w as increased $15,000, m aking it read $60,000. The b an k has sold $1,776,775 in E. F. & G. bonds only since May 1, 1941, the first day th e y w ere offered to th e public. At the m eeting of th e board of direc tors, th e officers of th e b ank w ere re elected as follows: R. E. D ougherty, president: F ra n k C. Crone, executive vice president; F re d L. Stew art, vice president; C. P. W eldin, cashier; R. M. W h itehead and M arion S. George, as sista n t cashiers. L ucy F. Dempsey, Phyllis J. Dem psey and B etty R. Ste phens w ere re-elected tellers. Banker Auctioneers R obert Staley, a ssistan t cashier of th e Ute S tate Bank, Ute, Iowa, in addi tion to his ban k duties, finds tim e to “au ctioneer” a t farm sales. H e is a young auctioneer and has a good fol low ing and a good n um ber of sales. Royal The an n u al m eeting of th e Home State Bank, Royal, Iowa, w as held last m onth. E d H uss w as elected p resi dent; E rn e st K ruse, vice president; W. M. Bailey, cashier, and E th n a Beck, a ssistan t cashier. W. M. B ailey and P eter Beck w ere elected new directors on th e ban k board. Bank President Dies H ow ard Drake, 65, pioneer banker, presid en t of th e Security State B ank of Radcliffe, Iowa, passed aw ay last m onth. Come In and See Us! Kiron We extend to bankers a most cordial invitation to visit this bank whenever you are in Sioux City, and to meet all our officers and directors. In this great commercial and market center of the northwest, we are especially equipped to handle your correspondent business. A. G. Sam, President J. P. Hainer, V ice President J. R. Graning, Assistant Cashier Fritz Fritzson, Vice Pres, and Cashier E. A. Johnson, Assistant Cashier J. T. Grant, Assistant Cashier W. F. Cook, Auditor At the stockholders’ m eeting last m onth th e follow ing w ere elected as directors of the K iron S tate Bank, K iron, Iowa: J. E. B aker, C. E. Dahl, L. A. Larson, C. R. Lundell and G. A. N orelius. D ividend checks of 15 p er cent w ere released to shareholders. T he ban k has added $3,000 to th e su rp lu s fund d u rin g th e year. N et incom e a fter depreciations on building and fixtures is approxim ately 20 p er cent of capital. Officers elected are: Mr. N orelius, president; Mr. Baker, vice president; Mr. Dahl, cashier; L. J. Paulson, as sista n t cashier, and Velm a Larson, bookkeeper. R enea T u rin has since been added to th e b ank staff. C ashier Dahl w rites, “This b an k is a real “service sta tio n ” to th e com m unity, appreciation of w hich is show n by s t e a d y and consistent grow th. Over $200>,000 in W ar Bonds w ere sold d u rin g 1944 by th e b an k .” Davenport The N o rthw est B ank & T ru st Com pany, D avenport, Iowa, re-elected the follow ing officers: H en ry H. Jebens, president; W. F. M eiburg, vice p resi dent; L. W. From m e, cashier and tru s t officer in charge of th e operations of th e bank, and B. F. McGee, a ssistan t cashier. The directors re-elected a t th e a n nu al stockholders’ m eeting w ere as fol lows: Mr. Jebens, Mr. M eiburg, M artin Thom sen, Dr. A. B. K uhl, Sr.. Ben Kelling, M artin Runge, F ritz Keppy, G ilbert H. R uehm ann and C larence H eeter. C ashier F rom m e announced th a t sat isfactory earnings p erm itted th e tra n s fer of $3,500 to th e su rp lu s account, * * * * / /7 S /O U X Member FD IC — Member Federal R eserve System N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 19b5 * * * Y O U R STA TE B A N K ER S A S S O C IA T IO N O F F IC IA L S A F E , V A U L T A N D TIM E LO C K EXPERTS F. E. DAVENPORT & CO. OM AHA OUR 50th YEAR 65 b rin g in g th a t figure up to $25,000, w hile undivided profits in creased to $17,000, including reserves. D eposits as of D ecem ber 30, 1944, to tal $2,350,000. Two new directo rs w ere added to th e board of th e F irs t T ru st & Savings B ank, D avenport, a t th e a n n u al m eet ing. T hey are H e n ry L ischer, p resid en t of th e Schlegel D rug Com pany, and F ra n k E. M orency, p resid en t and g en era l m an ag er of th e M. A. F o rd M anu fac tu rin g Com pany. YOUR CUSTOMER'S INVENTORY CAN BE MADE "BANKABLE" M arried in Am es H elen M ahoney, for th e p ast five y ea rs se c re ta ry to Clay W. Stafford, p re sid e n t of th e Ames T ru s t & Savings B ank, Ames, Iow a, resigned h e r posi tio n last m o n th to becom e th e w ife of F ra n k Ruble, m an ag er of th e SheldonM unn H otel, in Ames. B efore h e r con nectio n w ith th e A m es in stitu tio n , Mrs. R uble sp en t te n y ears in th e re ceiv ersh ip division of th e Iow a B an k in g D epartm ent, and p rio r to th a t held a position in a b an k at F o rt Dodge. Ralph Bunce Dies R alph L. Bunce, 51, dep u ty su p er in te n d e n t of th e Iow a S tate B anking D ep artm en t, died J a n u a ry 31 in Des M oines a fte r an illness of six m onths. H e h ad been in th e hospital a m onth. Mr. B unce h ad been w ith th e State B an k in g D ep artm en t since 1918 except for a five-year period in w hich he w as vice p resid en t of th e Iow a S tate T ru st an d Savings B ank a t B urlington. Mr. Bunce w as a nativ e of W ash in g ton, Iowa, w h ere he began his b a n k ing career. He w as a m em ber of th e P ly m o u th C ongregational C hurch and th e M asonic lodge. H e is su rv iv ed by his wife, a son, Jo h n Bunce, a t hom e, and his m other, M rs. L ym an Bunce, of W ashington. Des Moines News r R E D E R IC K M. MORRISON w as rei elected p resid en t of th e V alley Sav ings B ank and Rolfe O. W ag n er w as ren am ed p resid en t of th e C apital City Savings B ank at a n n u al m eetings held la st m onth. All o th er officers and directors of the V alley B ank w ere reelected. One new director, E rn est I. Sargent, vice p resid en t of S argent & Co., w as elected by th e C apital City Bank. All o th e r officers and directors w ere re elected. T h ere w as one change a t th e Iow a S tate B ank w h ere R aym ond Braniff, fo rm erly an auditor, w as nam ed as sista n t cashier. George A. F ram pton w as reelected p resid en t of th e Iow a S tate Bank. All o th er officers and directo rs w ere renam ed. SECURITY in the (lecOMOj&iAÀost ßesU ad Banking Institutions m ay be called upon for counsel and assistance to help w ork out the im m ediate financial problem s which w ill con front m any Industrial Com panies in the Re conversion Period. FIELD W A R E H O U S IN G o ffe rs th at ad d e d m easure of S e cu rity—a virtual guard fen ce— so essential in furnishing Working Capital to w orthy customers. W hen your Customer’s Inventory (ra w or fin ished) is co llateralized through the use of a Field W arehouse installation this collateral becomes a most accep table security to both borrow er and lender. Our Record Stands: N e v e r so m uch as on e d o lla r loss on a F ield W a re h o u sin g o p e ra tio n to L en d in g A g e n t, B o n d in g C o m p a n y or O u rselves. Write for Information on Field Warehousing, Banks Sold or Bought! quietly, quickly and in a personal manner JAY A. W ELCH BANK BROKER Haddam. Kansa> ‘'36 Years Practical Banking Experience” O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w e stern Banker F ebru ary 1945 66 • SOUTH The Central N ational Bank & Trust Com pany reelected W illiam J. Good w in as ch airm an of th e board of di recto rs and E. F. B u ck ley as president. N oel T. R obinson, form erly an as sista n t tru s t officer, w as m ade a vice p resid en t and tr u s t officer d u rin g th e year. He has been w ith th e b ank ap prox im ately th ree years. O ther di recto rs and officers rem ain th e same. The B an kers T rust Com pany re elected B. F. Kauffm an as president. No changes w ere m ade in th e b a n k ’s staff. A t th e Iow a-D es M oines N ational DAKOTA NEWS M aryland, Baltim ore, and E dw in C. W alton, assistan t to th e president, A m erican A ir Lines, Inc., New York City. H eads Sioux C ity Clearinghouse A t the an n u al election held last m onth, A. G. Sam, presid en t of the F irs t N ational B ank of Sioux City, w as nam ed p resid en t of th e Sioux City B ank & Trust Company, H erbert E. H orton, p resident, announced the prom otion of Laird M. F ry er from as sista n t cashier to a ssista n t vice p resi dent. Gerald O. N elson, w ho has been connected w ith th e in stallm en t loan d ep artm en t for th e last th re e years, w as elected an a ssista n t cashier. All o th er officers and directors w ere reelected. Scott C. P idgeon, vice p resid en t of B ankers T ru st Company, last m onth w as elected p resid en t of th e M issouri V alley C hapter of R obert M orris A s sociates, at th e an n u al m eeting of the organization in K ansas City. The group is com posed largely of credit m en and loaning officers of m em ber ban k s in th e area. T he P hiladelphia N ational Bank, to fill th e vacancy caused by th e death of Rodm an E. Griscom. Mr. B att w as a m em ber of th e P resi d en t’s Special Mission to Moscow, w ith the ra n k of M inister, in 1941, and re ceived th e BOK P hiladelphia aw ard for 1942. Becomes Treasurer V incent Cullen, p resident of the N a tional S urety C orporation, has an nounced th e election of Vice P resid en t Clifford E. D em ing as tre a su re r of th e corporation. Mr. D em ing w ill continue to exercise general supervision over th e accounting departm ent. H. J. Lofgren resigned as vice p resi d en t and treasu rer, to en ter business for him self. N E W S A N D V IE W S (C ontinued from page 17) H eads Insurance Society A nnouncem ent w as m ade of th e elec tion of F ra n k J. Scott, b a n k e r and in d u stria l consultant, to th e presidency of The M orris P lan In su ra n c e Society, succeeding th e late R obert W. W atson. T he in su ran ce society, an old line com pany, specializes in u n d e rw ritin g loans extended by p ersonal credit de p artm e n ts of b an k s th ro u g h o u t th e co u n try and has a peak volum e of $80,000',000 annually. The society’s board also announced th e election of M ajor R obert F. T albott as first vice p resid en t and th e addition of th e follow ing new board m em bers: T hom as Coughlin, president, M orris P lan B ank of Cleveland; R obert O. Bonnell, p resident, The Public B ank of • A. G. SAM H eads C learing H ouse C learinghouse A ssociation, to succeed th e adm in istratio n of C harles R. Gos sett, p resid en t of th e Security N ational B ank there. New vice presid en t of the association is R. R. B rubacher, p resid en t of th e Toy N ational B ank and head of th e Iowa B ankers Asso ciation. R. E. Brow n, cashier of the S ecurity N ational Bank, w as re-elected secretary-m anager. So one n ig h t w hen he w as not sleeping in his m uddy foxhole in France, b u t he w as th in k in g about C atherine and a diam ond ring, he also th o u g h t of the F irs t W isconsin N ational, because he had a bank account th ere and he w as sure th ey w ould be glad to buy a ring for him and deliver it to Miss Gonski. So he w rote to A. C. “Cupid” Casper, cashier, and asked him to do th e “nec essary.” So. Mr. Casper, w ith th e as sistance of his secretary, E sth er F en kl, delivered not only th e ring, b u t a cor sage of gardenias to Miss Gonski, w ho w as m ade suprem ely happy and de lighted w ith th is rem em brance from R obert in F ran ce by w ay of th e m at rim onial bureau of the F irst W iscon sin N ational. One of th e new advertising slogans w hich B ob B row n has w ritte n and the F irs t N ational B ank will soon be using is, “Cupid’s c u sto m e r s c o u r te o u s ly , New D irector ch eerfu lly a n d c a r e fu lly caressed Avhile com panions c a n ’t c o m p le te th e ir c o n n u b ia l con tracts.” W illiam L. B att, vice chairm an of th e W ar P roduction Board and p resi den t of S. K. F. In d u stries, Incorpo rated, has been elected a director of 14,500 b a n k s had on d ep o sit an e s t i m a ted $138,000,000,000, com pared w ith At th e end of 1945 th e c o u n try ’s S carborough ^ C ompany First National Bank Building, Chicago N o rth w e stern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F e bru ary 19b5 Horace A. Smith, Iowa Representative Des Moines, Iowa OUR 50th YEAR 67 • $118,336,000,000 a t th e end of 1943 and $44,000,000,000 a t th e end of 1932, th e depression low point. The Chase N ational Bank of New Y ork continued its w orld leadership in point of size w ith deposits of $4,835,219,258, com pared w ith $4,375,581,441 a t th e end of 1943. Second in ra n k th is y e a r w as B ank of A m erica, N ational T rust & S avin gs A ssociation of Cali fornia, w ith deposits of $4,340,539,688, ag ain st $3,498,153,210 a y ear earlier. Dr. H arold G lenn M oulton, p resid en t of th e B rookings In stitu te of W ash in g ton, D. C., in a re c e n t speech said, “It now ap p ears th a t none of th e dire forebodings th a t th e com ing of a new w orld w ar w ould alm ost certain ly seal th e fate of p riv a te en terp rise, b rin g a v ast inflation of prices, and re su lt in im p o v erish m en t w ill be realized, ex cept in m in o r degree. The w ar period has b ro u g h t to th e A m erican people as a w hole, and I believe o u r g o v ern m ent, a new realization of its v ital im p o rtan ce.” IO WA NEWS • good deeds w ere alm ost sh y ly done; he had a fine m ind, a rugged in tegrity of spirit. A lifelo n g resident of M inne apolis, he ranked am ong its sturdiest and m ost devoted pioneers. H is p ass in g is a h eavy civic loss.” M. F. H enderson, cashier of the Peo ples T ru st and Savings B ank of Indianola, Iowa, w rote the N o r t h w e s t e r n B a n k e r recently about a “Soil C onser vation P rogram ” w hich he said w as w orking out v ery satisfactorily for one of th e ir w om en custom ers. T he for m ula is v ery in terestin g and we are '■¡ivy■ ' ' :■ sure Mr. H enderson w ill send it to you if you w ill ask him for it. Orval W. Adam s, executive vice p res ident of th e U tah State N ational B ank of Salt Lake City, form er p resid en t of the A m erican B ankers A ssociation and new ly elected presid en t of th e Salt Lake City C learing H ouse A ssociation, sen t us his “best w ishes for th e New Y ear” and also th e statem en t of his fine in stitu tio n , w hich now has depos its of $54,762,442, w ith a capital of $500,000 and su rp lu s and undivided profits of $1,169,000. '¿SiV&ïï'ÿi&y Xv:;,. .. Edgar L. M attson, w hose d eath last m o n th w as a shock to his m an y friends th ro u g h o u t th e n o rth w e st and th e n a tion, h ad long been active in th e b a n k ing circles of M innesota and M inneap olis. A t th e tim e of his d eath he w as ch a irm a n of th e board of th e M idland N atio n al B ank and T ru s t Company. In sum m ing up his m an y accom plish m en ts, one editorial w rite r said: “Edgar L. M attson w as one of those able, w ise and u nob trusive citizen s w ho contribute m igh tily to the vigor and the good ness of the com m un ity in w hich th ey live. “H e w as an ou tstand in g su ccess in the field of banking. H e gave gen er o u sly of h im self to m any w orth y civic en terp rises and activities. H e w as h ig h ly honored by the K ing of S w e den, w ho m ade him com m ander of the V asa Order. A ll h is life he attracted devotion and respect, and all h is life he accum ulated stead fast friend sh ips. “H e w as gen tle and soft-spoken; his MEAT... ESSENTIAL FOR NUTRITION Meat . . . som ething you can get your teeth into. It is a building load, b eca u se it's chock-full of PROTEIN for building and repairing m uscular "to take first place." tissu es. The word "protein" And proteins DO take without them w e could not live. m eans first p lace, for It is not surprising then that our gigan tic livestock industry w a s never more conscious of its trem endous responsibility in feeding this and other nations. Each step in the ram ifying system of livestock production and m eat pack in g requires bank services and close cooperation b etw een banks. Cooperation of the Drovers N ational Bank helps other bankers w h o se custom ers ship livestock to C hicago to render fast DES MOINES BUILDING-LOAN & service in transmitting proceed s after the sa le is m ade here in the Union Stock Yards. WE INVITE YOUR INQUIRY. SAVINGS ASSOCIATION O ldest In Des M oines 411 6th Ave. Members, Federal Deposit Insurance Corporation Dial 4-7119 ELMER E. MILLER Pres, and Sec. HUBERT E. JAM ES A sst. Sec. FOR YOUR ENJOYM ENT . . . Listen to the “ WORLD OF M USIC” KRNT, 1350 KC 10:30-11 a. m. Sundays O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orth w e stern Banker F ebru ary 1945 68 MERCHANTS MUTUAL BONDING COMPANY Incorporated 1933 Home Office SO UTHERN SURETY BUILDING Des Moines, Iowa Robert. M. H an es, president, W acho via B ank and T ru st Company, W in ston-Salem, N orth Carolina, in an a r ticle said recently, “The tim e has com e Incidentally, th is is th e 50th an n iv e r sary of th e bank, w hich w as estab lished in 1895. w hen bankers m ust m erchandise cred its ju st lik e b u sin ess m en in other lin es m erchandise clothing, groceries, cigarettes and ch ew in g gum . I do not m ean th a t bankers should en courage u nsound loans, but I do feel th at it is unfortun ate th at w e have som e banks in th is country th at have stopped the risk b u sin ess altogether. You can m erchandise credits, you can m erchandise loans, and you can do it sou nd ly.” Paul Joseph G oebbels in a recen t is sue of Das R eich, said a few nice w ords about Adolph H itler, statin g th a t “H it ler is the m iracle of G erm any and th e g reatest of personalities. N ev er does Farm cash incom e for 1944 reached a record of $21,207,000,000, th e agricul tu re d ep artm en t estim ated. F o r 1943 it w as $19,924,000,000. Included in th e 1944 incom e w as $817,000,000 in g overnm ent paym ents. The volum e of farm production w as 3 per cent g reater in 1944 th a n in 1943. • This is Iowa’s oldest surety company. A progressive company with experi enced, conservative management. W e are p rou d o f o u r h u n d red and fifty b an k a g en ts in Iow a. To be the exclusive representative of this company is an asset to your bank. W. F . G oodwin, ch airm an of th e board, C entral N ational B ank and T ru st Company, Des Moines, is send ing out a “W eekly N ew s L etter” of th e proceedings of th e 51st G eneral A s sem bly of Iow a to all of th e b a n k ’s custom ers and friends. T his is a m ost helpful service and m uch appreciated by those w ho receive th e letter. W rite to E. H. WARNER Secretary and Manager Our G o a l l o r V ic to r y in 1 9 4 5 NEWHOUSE PAPER COMPANY "B etten. P'ueitieuf, P a fie ld ." Dubuque s C o u n s e Des Moines .e n/tee ó B a n k Moline St. Paul P la n to u se an a d v e r t is in g p r o g ra m o f w e ll w o rd ed m e ssa g es c r e a te d by W e s s l in g S e r v ic e s , D e s M o in e s , I o w a P u b l i c R e l a t i o n s D . R . W E S S L IN G . P R E S ID E N T 2 ) , ei Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 1945 Oh, yah? L ouis N izer, in Pageant, tells of th e success of young and old m en alike and rem arks, “D on’t th in k th a t y o u ’re eith er too young or too old to do g reat things; Thom as Jefferson w as 33 w h en he drafted th e D eclaration of Inde pendence. B enjam in F ran k lin w as 26 w hen he w rote ‘Poor R ich ard ’s A lm a nac.’ Charles Dickens w as 24 w hen he began his ‘Pickw ick P a p e rs’ and 25 w hen he w rote ‘Oliver T w ist.’ McCor m ick w as 23 w hen he invented th e reaper, and N ew ton 24 w hen he form u lated th e law of gravitation. “B ut E m an uel K ant a t 74 w rote h is finest philosophical w orks. V erdi a t 80 produced F alstaff and at 85 ‘Ave M aria.’ G oethe at 80 com pleted ‘F a u st.’ T en n yson a t 80 w rote ‘C ross ing the B ar.’ M ichelangelo com pleted his g reatest w ork at 87. T itian a t 98 painted th e historic pictu re ‘B attle of L epanto.’ Ju stice H olm es at 90 w as still w ritin g b rillia n t opinions, a n d George Bernard Shaw at 88 is still superbly Shavian.” D aniel F. O’Meara, vice p resid en t, The Public N ational B ank and T ru s t Com pany of New York, has sen t th e N o r t h w e s t e r n B a n k e r a v ery in te re st ing booklet, “A W ife’s 4 Q uestions Let us all hope that 1945 will bring us the Vic tory that we so richly deserve. If we all work together eventual victory will be ours so that freedom m ay be preserved. Do your part by keeping your business on a high level—your publicity reflected through your own high prestige. M inneapolis a w ord of deception or of base in te n t cross h is lips. H e is truth itself.” otneó 9, J o A bout H er H u sban d ’s W ill.” The w ife’s four questions as o u tlin ed in th e booklet are these: 1: W hy is m y sh are of th e estate left in tru st, instead of to me outright? 2. W hy w as i t necessary to take out $60,000 addition al life insu ran ce th a t is not to be left to me b u t to your estate? 3. J u s t w here will th e m oney to pay m y bills and ex tra expenses come from? 4. W hy w as The Public N ational B ank and T ru st Com pany of New York, nam ed executor and trustee? R. H. Grant, G eneral M otors execu tive, quotes th is as his favorite m axim : “W hen you h ire people w ho are sm a rte r th a n you are, you prove you are sm a rte r th an th ey are.” B e C ou rteou s F irs t N eighbor: “W h at do you m ean by sw earing before m y w ife?” Second N eighbor: “Sorry, sir — I did n ’t know she w anted to sw ear first?” OUR 50th YEAR 69 • W H A T D O Y O U T H IN K ? (C ontinued from page 7) n atio n al service in tim e of w ar. H ow ev er I believe th e en actm en t of such a law at th is tim e w ould m erely con fuse th e issues and w ould necessitate a natio n al reo rg an izatio n a t a tim e w h en we can ill afford th e ex p en d itu re of th e needed tim e and effort. In short, th e proposal should have been ac cepted at th e o u tset of th e w a r as a basis of reg im en tatio n for to tal w ar and not now w h en we are m aking definite p rogress in spite of th e lack of a coordinated p ro g ram .” George W. A rtherholt, president, IOWA NEWS • M ontgom ery County N ational Bank, Red Oak, Iowa: “No, I do not th in k we have to adopt th e m ethods of th e Nazis and F ascists to beat them . I th o u g h t we w ere fighting th is w ar to escape ju st such reg im entation.” Buy W ar Bonds y_ serving Iowa Businessmen and FARMING Every banker wants to know W hat’s A head? D.A.S. AGRICULTURAL DIGEST A service that w ill help to keep you up to date on “Business and Agriculture” and other semi-monthly releases. fa tO v e * 5 9 ty e a n d . This Is Worth Fighting For Initial cost $15, including six months service and $10 a year thereafter. Doane Agricultural Service For more than a century and a half, our country and all its people have been free. We INCORPORATED Am ericans can say what we like . . . read what we like. BANKERS H om e Office: St. Louis, Missouri No dictator can tell us what to do. This is the Am erican W ay of Life. The Oldest and Largest Farm Man agement and Appraisal Service in the United States. Koch Brothers' Employees are 100% behind the "all-out" w ar effort! For Complete Information and Sample Releases, W rite to DOANE AGRICULTURAL SERVICE, Inc. STATIO N ERS Des Moines V 1889 205 Plymouth Building, Box 302 Des Moines 9, Iowa A BOOK BINDERS office o u t fitt er s ^ ^ N T ^ ^ business MACHINES G rand A v e . at Fourth De s M o in e s , Ia . Index To Advertisers A il A l l e n W a l e s A d d i n g M a c h i n e C o ............ 3 A l l i e d M u t u a l C a s u a l t y C o m p a n y ............... 39 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 .. 28 H a m m e r m i l l P a p e r C o m p a n y ...........................25 H e r r i n g - H a l l - M a r v i n S a f e C o m p a n y . . . . 26 H o m e I n s u r a n c e C o m p a n y ................................. 4 O P « I B a n k e r s T r u s t C o m p a n y — D e s M o i n e s . . 71 I o w a - D e s M oin es N a tio n a l B a n k an d T r u s t C o m p a n y ...................................................... 72 C C e n t r a l N a t i o n a l B a n k a n d T r u s t Co. . . . 1 2 C h a s e N a t i o n a l B a n k ............................................. 8 C ity N a tio n a l B a n k an d T ru st C o m p a n y — C h i c a g o ...................................................................46 C ity N a tio n a l B a n k and T r u s t C o m p a n y — K a n s a s C i t y .........................................................57 C ontinental B an k and T rust Com pany — N e w Y o r k ..............................................................53 C o n t i n e n t a l N a t i o n a l B a n k — -L in c o ln . . . . 59 D D a v e n p o r t , F . E . a n d C o m p a n y ......................64 D e L u x e C h e c k P r i n t e r s , I n c ............................ 50 D e s M oines B u ild in g , L oan an d S a v in g s A s s o c i a t i o n ................................................................ 67 D o a n e A g r i c u l t u r a l S e r v i c e , I n c ..................... 69 D r o v e r s N a t i o n a l B a n k ..........................................67 F F e d e r a l I n t e r m e d i a t e C r e d i t B a n k s ............32 F i n a n c i a l D e v e l o p m e n t C o m p a n y ................ 34 F i r s t N a t i o n a l B a n k — C h i c a g o ........................ 30 F i r s t N a t i o n a l B a n k — O m a h a ...........................56 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 .................64 F i r s t St. J o s e p h S t o c k Y a r d s B a n k ........... 57 F i r s t W i s c o n s i n N a t i o n a l B a n k ......................35 G G e n e r a l A m e r i c a n L i f e I n s u r a n c e C o . . . . 38 O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J K ................................ P h i l a d e l p h i a N a t i o n a l B a n k ............................27 P u b l i c N a t i o n a l B a n k a n d T r u s t C o . . . . 21 It J a m i e s o n a n d C o m p a n y ..........................................46 K och B rothers O m a h a N a t i o n a l B a n k ................................... . . . 1 9 R u ssell C ounty B u ild in g and Loan A s s o c i a t i o n .................................,.............................40 69 L L a M o n t e , G e o r g e a n d S o n ................................. 5 L a w r e n c e S y s t e m ...................................................... 29 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 ........................ 69 L i v e S t o c k N a t i o n a l B a n k — C h i c a g o . . . . 63 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 .......... 60 L i v e S t o c k N a t i o n a l B a n k — S i o u x C i t y . .4 8 L o n s o n M a n u f a c t u r i n g C o m p a n y . . .......... 46 M M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 68 M e r c h a n t s N a t i o n a l B a n k ................................... 2 M e r r i l l L y n c h , P i e r c e , F e n n e r & B e a n e . .3 3 M in n ea p o lis M oline P o w e r Im p le m e n t 47 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 .......... 40 S St. L o u i s T e r m i n a l W a r e h o u s e C o m p a n y . 65 St. P a u l T e r m i n a l W a r e h o u s e C o m p a n y . 6 S c a r b o r o u g h a n d C o m p a n y ................ 3 7 - 6 1 - 6 6 S t a t e A u t o m o b i l e I n s u r a n c e A s s o c i a t i o n . 40 T T e n s i o n E n v e l o p e C o r p o r a t i o n . ......................53 T h o m s o n a n d M c K i n n o n ....................................... 34 T o o t l e L a c y N a t i o n a l B a n k ............... : . . 58 -5 9 T o w n M u t u a l D w e l l i n g I n s u r a n c e Co. . . . 4 1 U U n i t e d S t a t e N a t i o n a l B a n k ............................. 54 N N a t i o n a l B a n k o f W a t e r l o o ............................. 62 N a t i o n a l C a s h R e g i s t e r C o m p a n y .................23 N a t i o n a l S u r e t y C o r p .......................................... 42 N e w h o u s e P a p e r C o ................................................... 68 N e w Y o r k T r u s t C o m p a n y .................................. 58 N o r t h e r n T r u s t C o m p a n y . . . . ...........................51 w W a l t e r s , C h a r l e s E ...................................................57 W e l c h , J a y A ............................. 65 W e s s l i n g S e r v i c e s ................................................... 68 W e s t e r n M u t u a l F i r e I n s u r a n c e C o ..........36 Northwestern Banker February 1945 70 In th e DIRECTORS' R o o m S he W as H is Gal P in ch Joe A rm odier req u ested a pass, He told his C. O. of his beautiful lass, Described h e r in p h rases so p e rt and so neat, E veryone k new she m u st be sweet. P lu tarch tells of a Rom an, divorced from his wife, w ho w as blam ed by friends for the separation. “W as she not beau tifu l?” th ey chor used. “W as she not chaste?” The Rom an, holding out his shoe for them to see, asked if it w ere n o t goodlooking and w ell made. “Yet,” he added, “none of you can tell w here it pinches m e.” “She’s th e car in m y C arbine, She’s th e ju m p in m y jeep, She’s th e can in m y canteen, She can sing m e to sleep. “She’s th e leg in m y legging, She’s th e tre a d on m y tank, She’s th e arm on m y arm or, She’s th e girl for th is Y ank.” The C. O. said little, B ut his th o u g h ts w ere m uch fre e r— “You stay on th e P ost— And I ’ll go and see h e r.” H o n e s t C h eatin g R astus (th ro w in g dow n four aces): Dar, I guess I w ins dis pot, all right. Sambo (a n g rily ): You play dis gam e h o n est—I know w h at cards I dealt yo’. No Joy Doctor: A nd if he loses conscious ness again, give him a d essert spoon ful of brandy, W ife: W hile h e ’s unconscious, doc to r—h e ’d n ev er forgive me. S atisfaction W om an (to d ep artm en t store m an ager over ’p h o n e ): I sim ply had to tell you how m uch I like th a t h a t I bought last week. M anager: T h a t’s fine, lady, b u t w hy call m e a t 2:00 a. m. to tell me? W om an: ’Cause y o u r tru c k ju s t de livered it! D affyn ition s Bigam ist: A m an w ho adds one and has tw o to carry. T ru a n t Officer: A tale n t scout for a reform school. Best Seller: A book th a t usually sells b e tte r th a n it reads. Bad A ctor: A m an w ho is egged on by am bition and egged off by th e au dience. A trophy: W hat you get if you w in a to u rn am ent. F orger: A m an w ho tries to m ake a nam e for him self, b u t picks th e w rong one. Sm okers: People w ho claim th e m ore th e y fume, th e less th ey fret. F riend: One w ho has th e sam e ene m ies you have. Echo: The only th in g th a t can cheat a w om an out of the last word. M om entum : W h at you give a p er son w hen h e’s leaving. N orm al An au to ist w as m otoring th ro u g h the m oun tain s of Colorado w hen he cam e upon a sm all village tucked aw ay in a valley. H e stopped w h en he m et a n ativ e and asked: “I say, have an y big m en been b o rn in th is to w n ?” “No,” answ ered th e hillbilly, “only sm all babies.” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 19k5 M o n o to n y Girl: “I suppose you find your A rm y life v ery dull in th e evening?” A irm an: “Sim ply no th in g to do. W e play darts, do th e crossw ord puzzle, drop a few bom bs on B erlin and go to bed.” P resto ! Bargain M agician: “And now, ladies and gen tlem en, th e n ex t is th e m ost spectacu lar of all m y repertoire. In th is feat I m ake a h u m an being dissolve into a puff of sm oke and v anish before your eyes. Com pletely off th e earth the body jo u rn ey s to spend some tim e am ong th e spirits. Is th ere anyone in th e audience w ho w ould like to subm it him self to th is experience?” Male Voice: “Can you w ait a few m in u tes w hile I get m y m other-inlaw ?” Pfc: “T hey say th a t in C hina you can buy a w ife for five dollars.” P vt: “W hy, th a t’s frig h tfu l.” Pfc: “Oh, I don’t know, a good w ife m ight be w o rth it.” G ran dpa's G irl “I ’m going to stay single u n til I find a girl like G randpa m arried .” “W ell, y o u ’ll stay single a long tim e th e n —th e y don’t m ake th em th a t w ay any m ore.” “Oh, I don’t know —G randpa ju s t got m arried y esterd ay .” Sim pie A ccording to unofficial sources th e new sim plified incom e tax now being devised in W ashington contains only th ree lines: 1. W hat w as your incom e for the year? 2. W h at w ere your expenses? 3. How m uch have you left? Send it in. CONVENTIONS W hile all banking and financial groups having conventions and m eetings sched uled for 1945 have not as yet announced definite cancellation, the profession w ill of course cooperate w ith the Office of D e fense T ransportation in the latter’s recent request that all such gatherings to con s is t of 50 persons or more, un less di rectly connected w ith the war effort, be discontinued for an indefinite period. Two Iowa Group M eetings, scheduled this month for Sioux C ity and Burlington, have been cancelled, and it w as decided to hold the Sioux City Group One m eeting next M ay w ith the other Group M eetings, un less for some reason these m eetings m ight be cancelled also. N orthw estern Banker readers w ill be im m ed iately ad vised should conventions be resumed. W ron g D irection “Did you say th e m an w as shot in th e woods, D octor?” “No, I said he w as shot in th e lum b ar region.” N o t A lw a y s Ju n io r: Mommy, do fairy tales al w ays begin w ith “Once upon a tim e?” M other: No, dear, som etim es th ey begin, “My love, I have been detained a t th e office again to n ig h t.” T ro u b le s N eighbor: Jim m y, w ho w as resp o n sible for all th a t bad language at your house th is m orning? Jim m y: G randpa. He w as late for ch urch and couldn’t find his hym nbook. W illin g Lady-next-door: L ittle boy, I need a dozen eggs from th e store, could you go for me? L ittle Boy: No, b u t I h eard Pa say he could. O U R 5 0 th Y E A R I M M O R T A L words . . . words of a wartime president, whose birthday comes this month. No message seems more timely for this page. In reading once again his fam iliar message, we believe you will fin d renewed inspiration to meet the challenge of today's wartime duties. ★ Lincolns GETTYSBURG ADDRESS F our score and seven years ago our fathers brought forth upon this continent a new na tion, conceived in liberty, and dedicated to the proposition that all men are created equal. Now we are engaged in a great civil war, testing whether that nation, or any nation, so conceived and so dedicated, can long endure. We are met on a great battlefield of that war. W ★ We are met to dedicate a por tion of it as the final resting place of those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this. But, in a larger sense, we cannot dedicate — we cannot consecrate—we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it far above our power to add or de tract. The world will little note, nor long remember, what we say here, but it can never forget what they did here. It is for us, the living, rather to be ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ dedicated here to the unfinished work that they have thus far so nobly carried on. It is rather for us to be here dedicated to the great task remaining before us,—that from these honored dead we take increased devo tion to that cause for which they here gave the last full measure of devotion,—that we here highly resolve that the dead shall have not died in vain; that the nation shall, un der God, have a new birth of freedom, and that governments of the people, by the people, and for the people, shall not perish from the earth. B A N KER S T R U S T COMPANY des moines https://fraser.stlouisfed.org jsAEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Federal Reserve Bank of St. Louis ★ IFQ P J/IC T O R Y l BUY GROWING WITH IOWA...Since 1875 This Bank . . . now in its 70th year . . . has grown to become the largest of Iowa's many excellent Banks. W e express sincere thanks and appreciation to all our customers, including banks, business firms, individuals and organizations, whose patronage, confidence and good will have helped make such growth possible. W hen you choose the lowa-Des Moines National as your correspondent connection in Des Moines your bank and your customers benefit from the com plete corres pondent services available here . . . services designed to measure up to the highest standards of quality. 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