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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 THE NORTHWESTERN BANKER N o rth w estern N ation al January, 1921 D ir e c to r s F. A. CHAMBERLAIN, Chairman First National Bank E. W. DECKER, Pres. Northwestern National Bank Life Insurance Company C. T. JAFFRAY, Pres. First National Bank T. B. JANNEY, Pres. Janney, Semple, Hill & Co. MINNEAPOLIS, M IN N ESO TA E. L. CARPENTER, Pres. Shevlin-Carpenter-Clarke Co. B. F. NELSON, Pres. Hennepin Paper Co. JOHN T . B A X T E R , P r e sid e n t A. A. CRANE, Vice-Pres. First National Bank J. A. LATTA, Vice-Pres. Northwestern National Bank A PU R ELY MUTUAL, FOUNDED OLD-LINE, W E S T E R N C O M P A N Y JOHN T. BAXTER, Pres. Northwestern Nat’l Life Ins. Co. 1857 Long Time Farm Loans Federal Land Bank O m aha, N ebrask a D. P. HOGAN............................. President E. D. MORCOM...................................... Treasurer C. M.GRUENTHER.............................Secretary M. L. COREY........................Attorney-Registrar The best proposition ever of fered for both borrower and local correspondent. This is the opportunity for a live farm loan man in each lo cality. Write for special circular and terms. Resources $26,000,000.00 I The C A P IT A L , $2,432,190.00 O u r o fficia l s ta te m e n t f o r J a n u a r y 31st s h o w s : I o w a ........... N ebrask a So. D a k o t a W y o m in g LEAVITT & JOHNSON TRUST CO. i r s t N a tio n a l Bankof O m aha No. Loans. .142 .157 .123 . 60 2,669 $18,952,850.00 2,729 11,772,490.00 1,720 7,050,450.00 504 1,150,100.00 482 7,622 $38,925,890.00 A fa r m e r s ’ c o -o p e r a t iv e la n d b a n k in w h ic h a ll n et e a r n in g s b e lo n g to borrow ers. 1919 n et e a r n in g s w e r e 15% o f b o r r o w e r s ’ s t o c k . Law re q u ir e s th a t 25% o f the n e t e a r n in g s be p la c e d to r e s e r v e a c c o u n t. T w o 6% d iv id e n d s a n d o n e 10% d iv id e n d a lr e a d y paid. W A TE R L O O , IO W A OLDEST IN IOW A has efficiently served Western Banks for 63 years. Your Bus iness is invited. No. No. Assns. Members. B a n k e r s g e n e r a lly a c t a s s e c r e t a r y -t r e a s u r e r s , an d find th is a r r a n g e m e n t a d v a n t a g e o u s b o t h to th em a n d t h e ir c u s to m e r s . 22 Millions of Live Loans The Prosperity Center N A TIO N AL BAN K 1 IN THE UNITED STATES N ew Business Invited on the basts of SATISFACTORY SERVICE Resources Over $5,000,000.00 FIRST NATIONAL BANK DAVENPORT, IOW A IRVIN J. GREEN, Cashier A. F. DAWSON, President You are invited to take advan tage of the comprehensive ser vice offered by the First Na tional Bank of Sioux City, Iowa, in the handling of all items drawn on points in Iowa, South Dakota, Nebraska and Minne sota. , Write wire or telephone when you demand immediate action. THE FIRST NATIONAL BANK OF SIOUX CITY, IOWA Capital, Surplus and Profits, $800,000.00 R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE Naming https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NORTHWESTERN a Por t BANKER in t he 3 4 0 '^ EADS” for Boston! “ Tails” for Portland!—Two New England skippers in 1845 tossed a coin to determine the name of a settlement on the Willamette. Tails won, and a harbor destined for great things was named. Had theseahidn been gifted with the power of foresight they must have been thrilled at the thought of the docks, mills, warehouses, banks that would in time be constructed here. THE U N ITER STATES NATIONAL BANK of Portland, Oregon, was organized in 4891. The early development of the city had been slow, but in the early 1900’s the extraordinary forward movement got under way. In 1903 the Oregon bank, its business rapidly developing, opened an account with The Northwestern National, of Minneapolis—an ac count standing today on the hooks of the latter as its oldest Oregon account. It was a joining of hands across the vast acres of the Northwest, one institution at the Eastern gateway, and the other at the meeting place of the Pacific water routes. The United States National is now a bank with $37,000,000 re sources, and Portland is the world’s largest shipping port for lumber. As a wheat port it is second only to New York, and it is the metrop olis of a great lumber, grain, fruit and livestock country. The Northwestern of Minneapolis congratulates itself for whatever assistance it may have lent to this empire of the Pacific. Since 1872 this bank has been a business factor in the Northwest, and is constantly increasing its usefulness to banks and other busi ness enterprises. NORTHWESTERN - NATIONAL' BANE M I N N E A P O L I S R E S O U R C E S - M I N N E S O T A $ 7 9, 0 0 0 , 0 0 0 THE 4 NORTHWESTERN BANKER January, 1921 A Bank of Vision Because they had vision, the pioneers, Lewis and Clark, were able to see the vast unexplored region beyond the Mississippi alive with prosperous farms, with teeming industry, with growing cities. The officers and directors of the First National Bank— leading business men every one of them— have this vision, this ability to look ahead and sense the possibilities of the future. This power to foresee and prepare accordingly is a most val uable asset to our patrons in times like these. Capital and Surplus Total Resources $ 1 5 ,0 0 0 ,0 0 0 .0 0 $ 1 7 0 ,0 0 0 ,0 0 0 .0 0 R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN 5 BANKER ANNOUNCING A NEW Selective Advertising Service E D W IN BIRD W IL S O N Incorporated NEW YORK C H IC A G O A n organization that has won its position in financial advertising solely on the quality of its work for many prominent banks and trust companies in the large r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis centers, from coast to coast, NOW OFFERS its services under a new plan to one banking institution in each o f the smaller cities and towns, at a cost com mensurate with its appropriation. This N E W Selective Service for Banks and Trust Companies is a complete advertising plan for one year, full o f new ideas, with all the materials necessary to carry it out. A QUALITY SERVICE FOR QUALITY BANKS COUPON ** USE T H E C O U P O N The prompt return o f the attached coupon will give you an opportunity to see this unique expert service. ^ ^ * EDWIN BIRD WILSON, Incorporated 81 East Madison St., Chicago We are interested and, without obligation on our part, we wish to see the NEW Se lective Service. R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. THE 6 NORTHWESTERN January, 1921 BANKER Are You Over or Under Paying Your Taxes? Are the taxes you pay in behalf of your stockholders deductible from your tax able income? Are you figuring depreciation on the right basis? Do you understand inadmissible assets? Do you know the best date for the payment of dividends? The answers to these questions and any others that may be troubling you will be answered quickly and promptly if you take advantage of our Federal Tax Service which is now being used by hundreds of bankers, throughout the United States, every month. Almost 90% of bank reports that are sent in for audit are made out wrong. Many banks understate their taxable income. Others overstate their income and pay too much tax— and do not understand how to secure a reimbursement or refund quickly. All these mistakes will be avoided by using our service. Under our Question and Answer Department you can ask us anything you want to know at any time and we will get the answer for you through our Washing ton, D. C., office which maintains one of the most complete staffs of experts on matters of income taxes in the country. OUR AUDITING SERVICE SAVES THOUSANDS OF DOLLARS every month for our clients. We have been especially successful in helping banks. Inad missible assets, improper depreciation, incorrect handling of reserves, im proper deductions for expenses, incorrect dividend payments, non-reinstatement of capital assets—these and many other loop holes have cost banks many dollars in extra taxes. You would like to know about this service. Write us. FEDERAL T A X SERVICE DEPARTMENT MERCHANTS TRADE JOURNAL, Inc. Seventh Floor Munsey Bldg., Washington, D. C. Des Moines Chicago New York Cincinnati Indianapolis R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE January, 1921 NORTHWESTERN BANKER 7 List of Bank Work of the Year 1919 done by T h o m a s M . Ja m e s Co m p a n y A rchitects and Engineers 511 Blackstone Bldg., CLEVELAND, O. 3 Park Street, BOSTON, MASS. Fuller Bldg., SPRINGFIELD, MASS. E v e r e t t T r u s t C o m p a n y , E v e r e t t , M a ss. F o u r t h -A t la n t ic N a tio n a l B a n k ..................... B o s to n , M a ss. W e b s t e r & A t la s N a tio n a l B a n k ..................... B o s to n , M a s s . O ld L o w e ll N a tio n a l B a n k ................................... L o w e ll, M a ss. F ir s t N a tio n a l B a n k ................................................ C lin to n , M a ss. W in d h a m N a tio n a l B a n k .......................... W illim a n t i c , Conn. C r o e k e r N a tio n a l B a n k ........................... T u rn e r F a lls , M a s s . T ic o n ic N a tio n a l B a n k .....................................W a t e r v ill e , M e. G lo u c e ste r N a tio n a l B a n k ...........................G lo u c e s te r , M a ss. L ib e r ty T r u s t C o m p a n y . ......................................B o s to n , M a ss. B r o o k lin e T r u s t C o m p a n y ............................ B r o o k lin e , M a ss. T e x t ile T r u s t C o m p a n y ........................... N e w B e d fo r d , M a s s . N o r th E n d B r a n c h , T e x t ile T r u s t Co. N e w B e d fo r d , M a s s . S a v in g s I n v e s tm e n t & T r u s t C o ..........E a s t O ra n g e , N . J. S a v in g s I n v e s tm e n t & T r u s t C o . . . . Sou th O ra n g e , N . J. P a r k T r u s t C o m p a n y ...................................... W o r c e s t e r , M a s s . N e w to n T r u s t C o m p a n y .............................N e w to n v ille , M a s s . L e w is to n T r u s t C o ................................................. L e w is to n , M e. E v e r e t t T r u s t C o m p a n y . ..................................... E v e r e t t , M a ss C lin to n S a v in g s B a n k ......................................... C lin to n , M a s s . N a tic k F iv e C en ts S a v in g s B a n k .................. N a tic k , M a s s . L o w e ll In s t itu tio n f o r S a v in g s . . . ................. L o w e ll, M a s s . S ou th B o s to n S a v in g s B a n k ...............S ou th B o s to n , M a s s . N o r th E n d S a v in g s B a n k ....................................B o s to n , M a s s . W a r r e n In s titu tio n f o r S a v in g s ......................B o s to n , M a s s . B r o o k lin e C o -o j»e ra tiv e B a n k ..................... B r o o k lin e , M a s s . E s ta b r o o k & C o m p a n y . . . . . .............................B o s to n , M a s s . A . B . L each i t C o m p a n y ...................................... B o s to n , M a ss. O F F IC E R S D IR E C T O R S JAMES H. ASHBY SAMUEL COZZENS S. T. KIDDOO G. P. EMERY ARTHUR G. LEONARD ■T. A. SPOOR H. E. PORONTO M. A. TRAYLOR P. EDSON WHITE THOMAS E. WILSON LOUIS F. SWIFT S. T. KIDDOO, President G. P. EMERY, Vice-Pres. J. L. DRISCOLL, Assistant to President D. R. KENDALL, Cashier A. W. AXTELL, A. Cash. L. L. HOBBS, Asst. Cash. H. E. HERRICK, A. Cash. C. L. WISTRAND, A. Cash. Capital and Surplus $ 2,250,000 Resources Over Established 1868 $ 25,000,000 G R E E TIN G S L ooking forward to the N ew Year as one of promise for better business and marketing conditions and of increased confidence in our government and its institutions we extend to our friends and customers our best wishes for a full measure of happiness and prosperity. T H E L IV E S T O C K K SK K P B A N K of Chicago R ea d ers w ill c o n fe r a fa v o r Toy m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en ivriting to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TH E N orthwestern B anker The N ecessary Financial Journal DES M O I N E S =iimmmiimiiiiiuiiitiuiimiiiiimiiimiuuimuiuumummumuimmmminmuimuimmmiiiiiiu 26th Y ea r iiiiiiiiimiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiii miiitiiiiiiiiifiiiiitiiiiiiiiiitiiiiiifiiiiiiiiitiiitiiitiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiimiiiiiiifiiiiiiiii h J A N U A R Y , 1921 EiiuiiiiiiiiiiimiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiuiiiiiimiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiii N u m b e r 401 iilUIIIIIIIIIIIlIllllIlltllllltlllllllllllllllllllllllllllllllllllirilllllllllllllllltlllllltllllltlllllltlllllllltlllllllllllllllllllllilililliiiliiiillllllliilllllllllllllllllllllllllllllllllllllllllllililllliliiiiiiiiillliiiiiiiiiiiittiiitiiiiiiKiiiiiiitiiiiiiiiiiiiiiiiiiiiiiin,: IN THIS ISSUE Editorial Comment___________________________________ By Clifford DePuy 10 Frontispiece--------------- By George H. Richards, Secretary Minnesota Ass’n 12 Business Outlook for 1921 Is Good___________________ By Donald H. Clark 13 We Have Been Walking On Stilts________________ By Geo. T. McCandless 14 What Constitutes Good Service?__________________ By Edward T. Phelps 15 Capital vs. Labor; Labor vs. Labor________________ By Judge S. F. Prouty 16 Present Difficulties Assure a Safer Future__________By Charles M. Schwab 17 Endorse Financial Publishers Association_________________________________ 18 Eradication of Farm Pests_________________________________ By W. B. Bell 19 Financial Burden on Farmers Demands Relief________By F. W. Thompson 20 Country Bankers Affected By Foreign Trade__________By Willis H. Booth 21 Ten “Bull Points” in Present Situation______________ By Roger W. Babson 22 Assure Success Through “Self Betterment”________________ By O. J. Moore 23 How to Put Liberty Bonds at Par____________________ By I. H. Nakdimen 24 Prices of Farm Products Will Cripple Business________By A. J. Grainger 25 Marketing of Produce Will Solve Liquidation______________ By W. T. Ries 26 Optimism in the Investment Market__________________ By Leslie Hanson 28 Recent Legal Decisions of Interest________________ By Legal Department 31 Personal Paragraphs____________________________________________________ 32 Iowa Bank News_______________________________________________________ 37 South Dakota Bank News_______________________________________________ 57 Bankers Not Responsible for Money Situation__________By I. T. McGinity 57 Nebraska Bank News___________________________________________________ 62 Minnesota Bank News-----------------------------------------------------------------68 Montana Bank News____________________________________________________ 74 North Dakota Bank News---------------------------------------------------------------------- 76 Bank Equipment Section------------------------------------------------------------------------ 78 For Bankers and Their Wants__________________________________________ 93 Insurance Section--------------------------------------------------------:-------------------------- 94 The Art of Selling Service---------------------------------------------- By W. G. Marvin 94 Iowa Farm Mortgage Section---------------------------------------------------------------------103 Investment Section----------------------------------------------------------------------------------104 Index to Advertisers-------------------------------------------------------------------------------- 110 =s ................................................................... iiiiiiiiiiiitiiiiiiiiiiiiiiiiitiiiitiiiiiiiiiiiiiiiiiitiitiiiiiiiiiiiiiiu Clifford De Puy Publisher Donald H. Clark Editor G. A. Snider Manager PU BLISH ED A T 555 SEVENTH STR E E T, DES MOINES, IO W A M o n th ly , $3.00 p e r y e a r , 50c a c o p y . E n te r e d a s second c la s s m atter at D es M oines post office to c o n fo r m to the p osta l l a w s ; e v eryth in g else p ertain in g to the jo u rn a l being strictly first class. T he oldest fin ancial jo u rn a l w est of the M ississippi R iv e r and the first in the United States to jo in the A udit B u reau o f C ircu lation s. MEMBER AUDIT BUREAU OF CIRCULATIONS MEMBER FINANCIAL ADVERTISERS ASSOCIATION MEMBER FINANCIAL PUBLISHERS ASSOCIATION St. Louis Office New York Office Chicago Office Minneapolis Office Special Representative R. Fullerton Place Philip J . Syms Herbert Armstrong Frank S. Lewis Charles Burke 424 Merehants-Laclede Bldg. 150 Nassau St. 410 Advertising Bldg. 840 Lumber Exchange Bldg. Care Northwestern Banker Phone Main 1342 Phone 4836 Beekman Phone Randolph 2100 Phone Main 3865 Phone Walnut 1844 tiuiituiiiiiuiiiiiiiiHiiuiiiiiuiuiiiiuuiiuuniiiiiiiiiiiumiiiiiiiimiuiiiiiuuiiuiiiiiiiimuiiiiiiiiiHi....................................................................... ................................................................................................................mu..... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R when writing to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 ISi O R T H W E S T E R N BANKER JANUARY, 1921 Looking Ahead There may be some who do not think that 1921 will be a very happy year in view of the fact that the main topics of discussion now 'are depression and deflation. In our estimation, however, we believe that conditions will gradually get better because the large crop which the farmers now have is going to be sold, or at least a part of it, and this is going to help reduce their loans at the country banks and they in turn with their city correspondents. In any time of adversity or depression it is only the real fighters who count and the real workers who ac complish anything. General Haig, of the British Army, when he was hardest pressed during the world’s war said, “ With our backs against the wall we cannot retreat, therefore we will advance.” The bankers and business men of the country today have their backs against the wall and they are going to advance. No coward ever won a battle and no quitter ever made a success. Present conditions should only prod us on to work harder, to strive longer, to economize more and thus as soon as possible, put the country back on a normal basis. If the United States had suffered a crop failure we would have something to worry about but as a matter of fact we have one of the largest corn crops in his tory, with over 3,199,000,000 bushels produced during the past year. This crop represents more than four-fifths of the world’s production and when it is sold it will bring money to the farmers and mean that the channels of business will again become active. If anyone in this cou n ty is so shortsighted as to think that we are having a hard time they should have heard the recent address of a Russian noblewoman who was in this country telling of conditions in Russia. In a part of her address this woman of fine education and-high standing in Russia said, “ There is no soap, no fuel, no milk, no food at all except black bread and that in limited quantity. Disease plays worse havoc than starvation, due, of course, to the unsanitary con ditions. People will go through winter months with out removing even their coats because there are no fires in their houses. Worst of all are the children. None of them are in school. They must spend their time in begging. They will stand on the streets and beg until they get an old piece of black bread and then sell it for a fabulous amount. They have no horror of death. They play with the dead bodies that hang on the lampposts on the streets. No children under three years old live. “ Paper money is of such little value that it takes bushels of it to purchase anything. A box of matches in Russia costs $12.00 in our money.” W e simply mention these things to show that there are still many things that we should be thankful for and that we can make 1921 a happy new year if we really want to. With the biggest bankers of the country keepingin line with the situation and members of Congress anxious to do what they can to assist in the present solving of our problems there should be no doubt as to the ultimate outcome in this country. W e have passed through wonderful years of pros perity and now that we are having a period of read justment let us not forget the prosperity of the past. W e can make 1921 a year full of happiness if we will. European Readjustment Every country is so closely in touch with every other country in the world that a depression which afifects one also affects the other. At the present moment Europe is also going through a period of depression and the duration of this is going to depend upon how quickly we can get our products to Europe in order to relieve the situation. Of course we cannot sell products to a country which has no money to pay and for that reason the re-establish ment of the War'Finance Corporation has been advo cated by many as the best method to solve this problem. A prominent New York banker, who returned recent ly from Europe said: “ The duration of the economic depression in Europe will depend very largely upon the promptness with which the United States returns to a normal basis and both depend considerably on the development of measures in this country for supplying Europe with credits so that those countries can purchase their raw materials and other requirements for the operation of their industries. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ Europe must have our raw materials and manufac tured goods, and we must expand our foreign trade if our labor and productive machinery are to be kept em ployed profitably. This country cannot be prosperous until Europe returns to productivity and unless Europe continues to take our goods.” Indeed Europe must take our goods if we are to prosper and she in turn in order to succeed must re turn to active work in order to make enough money to buy our goods which are needed in the development of the country. The theory of isolation as far as the United States is concerned no longer really exists because the things that affect Europe affect us. For that reason we are hoping that speedy restoration of better business con ditions will occur abroad. This will in turn enable Europe, through additional credits, to buy our goods here and thus bring new wealth to this country and create a market for the surpluses which we now have on hand. I January, 1921 THE NORTHWESTERN BANKER 11 The Banker's Advice Not every customer of a bank always takes the ad vice of his banker. . Bankers of course make mistakes and sometimes gave the wrong advice to their patrons but we are sure that it is never done intentionally because otherwise they would not be in the banking business for any great length of time. W e do know, however, of many cases where bankers have given advice and it has not been taken and the results have been disastrous to the customer. If, during the past year, the farmer customers of the bank had listened a little more attentively to what the bankers had told them about selling their corn when prices were high they would have been better off today. The farmers a year ago had high prices and many bankers suggested to them that they seli their corn when they could get $1.50 a bushel but the farmers said no, they wanted to renew their notes and carry their crop along a little further because they believed that corn was going to $2.00. Those same farmers have their corn on hand today, which is now selling for about fifty cents a bushel. If a farmer had 3,000 bushels of corn on hand a year ago for which he could have obtained $1.50 he would have secured $4,500 for his corn. At the same time he may have borrowed from the bank $2,000. He did not sell as his banker suggested that he should do and now today if he should sell the 3,000 bushels at 50 cents a bushel he would receive $1,500, which is not enough to pay the note. In other words, he should have taken his banker’s advice and sold on a rising market. It is our belief that the farmers are going to liquidate and that they are liquidating gradually and will there fore reduce their indebtedness to the banks. W e believe that the banker-landlord, however, should take the same medicine as he advocates to his cus tomers. In other words, there are many bankers who own farms and are sharing fifty-fifty with their tenants. If they sell their products as fast as they mature at the present market prices they are going to liquidate a part of their obligations and they can at the same time say to their farmer customers when they come into the bank that they should sell a part of their products and pay something on their notes. The banker can say to the farmer that he has been doing the same thing on his farm as he advocates for the farmer. On the other hand it is not necessary for the farmers to sell everything they have on hand, but only a part of it in order to create a vast amount of actual cash which will help to liquidate things on a gradual basis. This is the only basis on which we want to carry out the program. Liquidation must continue and we have enough faith in the farmers of this territory to know that they are going to do it because they realize that it is for their best interests. Our N ew Page Size Commencing with this issue of The Northwestern Banker we have changed the type size of our pages so that they are inches wide and 10 inches deep. W e have also changed our pages so that we have three columns to a page. This has been done to conform with the standard size adopted by the Financial Publishers Association at their annual meeting in Washington, D. C., a few months ago. The new page size will give present advertisers more space for the same investment and will also enable advertisers using space in all of the Financial Pub lishers Association list to use the same plate in each publication without having to make a new engraving for each magazine. This is only another step forward in the work which the Financial Publishers Association is doing in order to be of more service to the ever increasing list of ad vertisers who are using and appreciating the service of the leading monthly financial journals of the country. The Financial Advertisers Association recently en dorsed the good work that the Financial Publishers Association has been doing and was especially pleased because of the fact that all the members of the Pub “ A C A S H I E R ’S C H E C K ” for $3.00 is all that is required to secure the monthly visits of the Northwestern Banker for an entire $ear. Each issue contains from 108- to 200 pages of mighty interesting matter pertaining to banks and banking interests in the territory covered by the magazine. “ O U R C O R R E S P O N D E N T S .” Every bank in the Northwest is in vited to a place on this list. Send us items of local interest, tell us about your bank and its growth, prospects, etc., also any other financial news of interest to bankers in your section. We are always glad to hear from our friends. “ S IG H T D R A F T S .” We always carry a large “ Reserve” of good will and additional service, and will promptly honor drafts made upon same by any bank. This department is for your special benefit. It may be made of very great benefit to your bank. Do not fail to avail yourself of its privileges. “ A C L E A R I N G H O U S E .” Our columns are a clearing house for all our readers. Express your views on any topic of interest to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lishers Association are now members of the Audit Bureau of Circulation. The Northwestern Banker joined the Audit Bureau of Circulations several years ago and at that time it was the only banking magazine in the United States that was a member of the Bureau and until recently the only one that had placed its circulation on a known basis and had its books audited by an independent organization. Financial advertising has been making large strides forward in the past few-years and we believe that now it is only at the beginning of a new era of development and service which will help to be of material benefit in increasing the wealth of the Nation and deposits of the various institutions of the country. The Northwestern Banker is happy that it has com pleted twenty-five years of service to banks and bankers in this territory. W e are always happy, however, at any time to re ceive suggestions from our advertisers or subscribers regarding anything which they believe will help to im prove The Northwestern Banker. the banking fraternity and to agreewith us, or with of ideas, and people with We shall be glad to submit same for publication. You do not have anyone else. We learn things by an interchange whom we disagree often prove valuable teachers. hear from you. N O P R O T E S T ” has ever been offered to the statement that the field covered by the Northwestern Banker is the money-producing section of the American continent, rich in hogs, cattle, corn, etc., and dotted with thousands of prosperous banks, all doing a good business, and the majority of them are readers of “ The North western.” “ S U R P L U S A N D U N D I V I D E D P R O F I T S ” increase very rap idly withthose banks, whose advertisements appear regularly in the columns of this magazine. Full information as to rates and our special service will be promptly furnished on appli cation. Your business solicited and appreciated. The “ Bankhas been twenty-five years in its present field. =E — ¿iiiitimiiiiiiiitiiiiiiiiiiiiiiiiiimiiiiintmiiiiuimiMiiiiiiiiimiimiiiiiiiiiiir g | | jjg | M ¡1 GEORGE Secretary Minnesota https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bankers uuiiiiiiiiiiiiuiiiuiiiiiuiuiiiiiiiuiiiiiiiimiiiiiuimiiiiuiiimiiiiiiuiiiiiiiii'z Association. == EE | | | Mr. Richards was born in Buchanan, Michigan, November 9, 1861. He began | his business career after completing a high school course. He was for a time assistant cashier of the Farmers and Manufacturers Bank, at Buchanan, and later | became cashier of the Citizens National Bank, of Niles, Michigan. He was also I connected with the Farmers and Mechanics Savings Bank, of Minneapolis, and | afterwards engaged in the manufacturing business for a few years. He then 1 became secretary of the Minnesota Bankers Association. Since Mr. Richards | has been secretary of the Association the membership has increased from 953 to I 1,451. A remarkable gain has been made in the insurance department, which 1 shows that from a commission income of approximately $3,000 there has accrued I to the Association and its members for 1919 a total income from the insurance ! department of $28,640.34. A portion of this is due to the increased business on I account of Liberty Bonds carried by banks for customers, but much of it reflects | a legitimate growth in this department. Service has been provided the members I in the ordinary ways and is much appreciated. Special forms have been suggested f for their use in the matter of handling Liberty Loan bonds, and other details I connected with their bonds. A paid attorney provides answers to any legal quesI tions pertaining to banking and this feature of the association work is very | | | | | | | g g | | | g | g | MM j | | g jj MM j B | g g | popular. | | | | | | | | |U|im „„|N,lml„„„i„U|„ll,.... ..................... ...........I............. .................................. .................. .................."inn... . 1 liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiJiiiiiiiiiiiiiiiiiiiiiiiiiiii'H liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii.......... Page Twelve H. R IC H A R D S , g jj || jj m || g 1 .. ....................... . N orthwestern B anker The Necessary Financial Journal TWENTY-SIXTH YEAR J A N U A R Y , 1921 NUMBER 401 Business Outlook for 1921 Is Good Representative bankers look to the future with confidence and predict the return of normal conditions By D on ald H . Clark H A T is the business outlook for 1921 ? Can we greet the New Year with confidence of better conditions? Will business get better or worse? How much longer will deflation continue? Have prices reached the bottom? In an effort to get frank and honest opinions from well informed bankers on “ what’s ahead for busi ness,” the editor of The Northwest ern Banker sent the above questions to a number of representative bank ers of the Middle West. While the replies varied, a striking tone of optimism ran through most of the letters received. A few bankers are a bit dubious about the future, and for that reason asked not to be quoted. The other bankers ques tioned, however, look to the new year with confidence. Arthur Reynolds, vice president of the Continental and Commercial National Bank of Chicago says: “ It is impossible at this time to prognosticate future conditions for the reason there are so many ele ments which would enter into any discussion which might be made of the prospects for business. In a general way I can say that we have been passing through a period of deflation. Prices have materially declined, and this in turn has dis turbed the general situation through out the year. While there is a con siderable amount of inflation which has to be gradually overcome, still, we have a crop which has matured, and a good percentage of which is yet in the country, and must sooner or later go to market, at which time, no doubt, there will be some general easement. It can be anticipated, however, that we will not reach what will be the future normal of business conditions for quite a period of time, but I look to the future with confid ence.” Ed Kaufmann, president of the W https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis American Commercial and Savings Bank, Davenport, says: “ In my opinion some prices have reached bottom while others have not. There has undoubtedly been a degree of over-production in some lines but I believe in the aggregate it has not been sufficiently large to postpone very long a resumption of better business once deflation has fully run its course. It will be neces sary for all factors in the situation to be readjusted so that every kind of business will be enabled to pro ceed on a basis of equality and be built on a fundamentally sound foun dation. I am hoping, and, I believe, with some justification that this will occur early in the new year.” John J. Large, president of the First National Bank, Sioux City, says: “ It would seem that prices are down pretty well for the present, and if our farmers and merchants would make up their minds to take their loss and move their stuff, we see no reason why business should not pick up and improve for the coming year. It is true that our farmers are suffer ing a loss on their 1920 crop, but when you come to consider that the crop is very large, it is apparent that the sale of same will bring in a lot of money, and ought to put the farmer where he would be willing to buy the things he needs if they are offered at a reasonable figure, and it is up to the merchant to meet him on that basis. This is a great coun try, and nothing that has happened so far has led me to believe that it will do anything but go ahead and prosper eventually.” F. W . Thomas, vice president of the First National Bank of Omaha, says: “ The foreign situation is not at all reassuring, because in all sales transactions there are two factors involved. The first is the desire to huy, while the second, though not less important, is the ability to pay, which foreign nations possess only to a limited degree. Since our ex porters have reached the limit of their ability to supply credit and since we are no longer willing to accept in payment more foreign securities, our sales abroad have been greatly curtailed. “ The general situation through out this country, while much better than the foreign situation, is far from satisfactory, with little indication of early improvement. “ Now as to the local situation: In the mid-continent territory, the con dition of the banks is the barometer of general business conditions, and, as we well know, the banks are in a very extended condition,— perhaps more east of the Missouri river than farther west. The Federal Reserve Bank of Kansas City has put forth a strong effort to take care of the business, even to the point of bor rowing funds from other Federal Re serve Banks to do so. However, they have endeavored to operate along proper, conservative and legi timate lines, have discouraged large, unusual credit lines, and have at the same time rendered invaluable service in handling the business dur ing the present stringency. “ There exists at this moment a shortage of credit, which, however, should be gradually relieved within the near future through the market ing of cattle, hogs and corn, as well as wheat and other products. It is quite evident that the situation will improve but slowly, and that the period of deflation will require a considerable time. Prices on most farm commodities have about reached the pre-war level. The banker who continues to take care of his business in a proper and con servative manner is doing his duty (Continued on page 87.) Page Thirteen THE 14 NORTHWESTERN BANKER January, 1921 W e Have Been Walking on Stilts— Let’s Come Down to Earth W hen we feel the supporting strength of terra firma beneath our feet we can begin to clim b again By G eo. T . M cC an d less “ The Man Behind the Counter” ERCAN TILE houses every where are taking stock about this time of the year. The Christmas rush over and the lull that follows, allow the merchants to find where they stand financially. W e are all prepared to see won derful bargains offered in January and are seldom disappointed. No successful merchant likes to carry over into the Spring much of a line of winter goods and therefore puts a price on seasonable goods that will move them from his shelf into the homes of his customers. I am wondering how many bank ers take an invoice at the close of the year. W e cannot mark down our goods and hold bargain sales but we can take time to look over our notes and place honest valua tion on them and carry them at true values on our books. There have been many discussions among bankers as to when a note should be charged o ff.. Some say this should be done the day after maturity. Others seem to hold to the idea that a note need never be charged out so long as the signer can write his name and renew, even if the interest has to be added to the face of the note instead of being collected. There is a happy medium between these two extremes. You can fool your wife and your neighbors in definitely if you are smooth enough but you cannot afford to fool your self as to your- own worth. I do not believe there is a banker in the United States who has done an ac tive banking business for many years who has not at some time made a bad loan. The loan might not have been bad when it was made because no sane banker would voluntarily take a poor note, but circumstances unforeseen will later cause a shrink age of values which will imperil the collection of the note and it may turn out to be a total loss. I am not going to tire you by giving a long eared dissertion on what I think constitutes a good note but will simply refer you to a little booklet issued by one of the leading banks in Chicago, which contains M https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis an address given by the president of the bank several years ago on the subject “ A Good Note.” I wish for the good of the banking business in general that a copy of this book let could be placed in the hands of every loaning officer of every bank in the United States and I will ven ture to say that if its teachings are adopted there will be little need of charging off paper. W e are dependent on each other more than we think. I have heard bankers say “ No, I don’t carry much of a New York account—just enough to pay my drafts that I have to draw on them.” And during the panic of 1907 some of these bankers said “ W hy should I worry, New At the beginning of the New Year let’s all determine to start right, put our best efforts into every undertaking, play the game honestly and bravely, and when the end of the year comes around again we will all be better men and our business will be in sounder shape and in better form for service than ever before. York doesn’t mean anything to me. I don’t care what them Wall Street fellows do—they aren’t running my bank.” Then one morning we got up and read in the paper that New York banks had gone on a clearing house certificate basis and were not payingout any currency above actual needs. Then Philadelphia and Chicago and St. Louis and Kansas City Banks followed suit and our chesty country banker who boasted that HE was so independent of New York hung up a little sign on which he stated, “ No check paid in cash, over $10 per day.” Today there is more sympathy among bankers than there ever was before. Misery loves company. We aren’t trying to proselyte any cus tomers from the other bank by an offer of lower interest charged on loans and we are as suspicious as an old maid of the fellow who comes in and opens up an account and does not tell us why he did it till about two or three days afterward he comes in and touches us for a loan to take up his note at the bank where he had been carrying his account. W e are beginning to realize that we are all of a common mould, that we have the same problems to solve and that we can work better shoulder to shoulder than to be pulling in different directions. One of our customers expressed it so well that I want to’ pass his remark on. He said he had been talking to his brother who was a cattle man like himself. They had been discussing the falling prices of grain and live stock and how it was working such a hardship on them. This is the remark he made, “ Well Billy, let’s grin and take our loss and charge it up to our contribution to the war. This is part of the price of victory. Where would we be if Germany had won her fight? Where would the line of tribute she would have exacted stop?” Verily we are all paying our share of the price of victory but who would have it otherwise if he could? The recent fall in prices and un employment is not a surprise— it had to come eventually— so why not now, (as the well-known advertise ment reads.) As one of our merchants expressed it to me the other day, “ the spend ing capacity of the public has be come exhausted.” Too many houses and farms bought on payments— without any very fixed ideas as to where the payments were to come from in case of unemployment or falling prices of goods the buyer had to sell to meet the payments. Too much faith in destiny and luck and not enough foresight and common sense. The old law of “ survival of the fittest” is being worked out today in our industrial life. Health is the ability to withstand disease. If we have kept our business affairs in healthy condition we need not fear the attacks of industrial disease, known as hard times, for we will be able to carry on. But if any of us has over-extended credit to mush room concerns without real values (Continued on page 64.) January, 1921 THE NORTHWESTERN BANKER 15 What Constitutes Good Service by a Financial Institution? A changed attitude of officers toward each other, toward employes and toward the public, is needed as the basis of really good service By Edward J. Phelps Secretary and Manager Northern Trust Safe Deposit Co., Chicago HE matter of “ Good Service” in a bank divides itself na turally into three branches. The first is the duty of officers toward each other; the second is the duty of officers toward employes, and the third is the duty of both offi cers and employes toward the pub lic. There are certain old-fashioned and simple obligations which rest upon both senior and junior officers which well may be given most care ful thought. A successful bank offi cer must learn sooner or later, and he might just as well learn it soon as late, to adopt a judicial attitude. He must educate himself to the habit of weighing evidence. Our senior offi cers are vested, quite rightly, with large authority. It ought to be so. The danger in giving to any man large authority is that his views will be hastily formed without his giving proper weight to the opinions of other equally intelligent men. W e have bank officers in a number of cities whose attitude recalls the observation of an old British colonel who, in speaking of a contemporary, observed “ I wish that I could be as sure of anything as that man is of everything.” W e have, all of us, known bank officers with whom it is impossible to disagree, even most courteously, upon any subject, un less we are willing to subject our selves to personal embarrassment. It ought not to be so. It ought to be possible always for two bank officers to discuss any matter, large or small, pleasantly, each giving proper con sideration to the views of the other. In nine cases out of ten the result will be much more satisfactory than it will be if the man who has the final say-so simply uses his au thority without proper investigation. Get all the facts and weigh them dis passionately. Suppose the case of a bank officer who is asked by the president of a bank what the officer’s opinion is in regard to a vital matter of policy. If lie is conversant enough with the business in hand to be able to give his view off hand, he should give it at once, intelligently and forcefully, T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and it should be his real honest opinion, irrespective of other con siderations. If he feels that he is not acquainted enough with the proposition and that he would like to familiarize himself with it a little further, he should proceed to obtain a knowledge of all the ins and outs of it, and then, at the first oppor tunity, give his honest and unbiased opinion. We probably shall all agree that the above is the straightfor ward, sane method of procedure. But we have sometimes encount red bank officers who, when their E D W A R D J. P H E L P S opinion is asked in regard to an im portant matter of policy, proceed to fish around with a view to finding what the president thinks and what he wishes done, and who then con*ceive it to be their duty to follow in line with the president’s views, whether they think the president is right or not. In other words, they do not always say what they think, but what they think the president wishes them to say. Such official timber is of very little value to a bank in the long run. The president desires our opinion or he would not ask it of us, and he is entitled to hear it expressed, fearlessly and in telligently. If it so happens that what *we have to say does not fit in with his policy, and, if he does not agree with our view as to what ought to be done, our attitude should be, “ Very well, Mr. President, I will cheerfully and loyally carry out your policy to the very best of my ability, no matter what my own personal opinion may be, but you asked me for my views and I felt that I should reply to you conscientiously and truthfully as I saw the matter. Doubtless you are right and I am wrong.” The general conclusion is surely true that courageous and frank expression of his views on the part of a bank officer is a real asset to a bank always, but that coward ice and hypocrisy upon the part of bank officers, in dealing with really vital matters, are not assets. Of course they are not assets. They are contemptible liabilities. More frequent personal consulta tions between bank officers will be productive of most excellent results. We should cultivate such a relation ship with brother officers that we can go to any one of them as we would go to our own brother. We should discuss our own shortcom ings with them and give them help, if we can, on points upon which per haps some of them are temperamen tally weak. The bank will be the gainer in the long run if its officers can be upon terms of close personal intimacy with one another. i A wise bank officer will avoid magnifying little differences. Life is too short to let a hasty remark dropped under the pressure of high business tension rankle for a moment. Forget it. The responsi bilities which rest on us are heavy enough without our enlarging and distorting little things. Do we not all know of permanently strained relationships between two bank offi cers the original cause of which was so infinitesimally small that we might almost reprove a child for re membering it? One of the first things to learn in life is the adoption of an habitual attitude of being fair to the other man. W e none of us like it when unkind things are said about us behind our backs. We THE 16 none of us are pleased when some other officer seeks to gain an advan tage at our expense. Very well. Let us all be exceedingly careful then not to do these things to the other fellow. A long time ago there was a widespread notion that “ The King can do no wrong,” and some officers in banks still cherish the con viction that the modern successful bank officer is impeccable. They have not yet disabused themselves of the idea that it is all right for a bank officer to do what he pleases, to say what he pleases and to con NORTHWESTERN BANKER duct himself as he pleases. W e are coming to know better than this. If bank officers will give themselves over to more serious introspection and will realize that they are pretty much as other men are; and if they will majce a manful and determined effort in the way of self education, with a view to proper observation of the few simplicities which have just been laid down, the result to the bank will spell co-operation. The old way of doing it leads inevitably to disintegration. What is the duty of an officer January, 1921 toward an employe? If the convic tion were to be laid down that some of the bank officers in large banks of more than one of our large cities are not men of good character, it would be greeted with a chorus of indig nant remonstrance from all sides. But let us look into this matter. What is character? Is not character composed of those things for which a man stands in his daily life? If it is true that a given bank officer is habitually uncivil and inconsiderate and overbearing in his treatment of (Continued on page 81.) Capital vs. Labor; Labor vs. Labor The great problem to be solved in this country is not between employer and employe but between employes themselves By Judge S. F. P routy HE supposed conflict between capital and labor in this coun try is a misnomer. It is really a conflict of labor vs. labor. Em ployers of labor in organized indus tries have no interest in the question of wages except that their competi tors be required to pay the same price as themselves and thus protect them against competition in produc tion. If wages art advanced the manufacturer protects himself by advancing the price of his product usually two or three times the ad vance made in wages, and other laborers pay the bill. So it is the other laborers who are interested in the wage of every other industry and not the employer. In discussing this question we must ever keep in mind the axio matic fact that employers can and will receive a profit on the manufac tured article. If the cost of produc tion by advance of wages is made so high that the market will not absorb their product they simply shut down. No manufacturer will long continue the manufacture of articles at a loss or without profit. Therefore, every advance in wages to one class of laborers must be borne by other la borers and not by the employers. For instance, the production of coal is a highly organized industry. If an advance of twenty-five cents a ton is made to the miners, the operators advance the price to the consumers fifty or seventy-five cents a ton, and laborers not engaged in that industry pay the bill. Take as another illustration; the highly organized textile industry. An advance of 10 per cent in the wages of employes is always fol- T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lowed by an advance of 20 or even 30 per cent in the price of their product, and when laborers not en gaged in that industry go to the stores to buy their clothing and other necessary articles for their families they have to pay the ad vance. It is not the employer who suffers by the advance in wages, it is the other laborers. Take as another illustration: the steel industry. For every advance in wages granted their employes, the operators add double the amount to the price of their product. When other laborers go to the stores to buy the product they have to pay the cost of this advance and not the employer. W e have a fine illustration of the practical working of this principle in our solution of the Des Moines street car problem. The advance in wages of the street railway em ployes, however just, has created a condition where the receipts will not pay the running expenses and fixed charges. The street railway com pany is not interested in the ques tion of wages provided it can get a sufficient advance in fares to com pensate the deficit. It is now claimed, that it is necessary to advance the fare to eight cents. W ho pays this advance if made? It is apparent that this will be paid by the poor people of the city. The well-to-do, or even moderately well-to-do citi zens travel in automobiles and very rarely use street cars. So if this ad vance is made, the burden falls very largely upon those least able to pay. So the question here to be equitably settled is not between the street railway company and the city, but what is right and fair between the different classes of laboring men. This applies with equal force to every industry. So the great prob lem to be solved in this country is not between employer and employe, but between employes themselves. It does not make any difference how high wages are, provided all wages are equally high. But the injustice as between employes comes when one class is able to force its demands beyond an equitable basis and thus throw the burden upon their co laborers. It is perfectly apparent to any one carefully observing the trend of economic affairs that the highly organized employments are work ing a serious injustice upon those engaged in unorganized industries. T o illustrate: Those in the railway service recently were able to force an increase of $600,000,000 in their wages. This burden did not fall on the railways. They demanded and were allowed an increase in freight and passenger rates sufficient not only to cover the advance in wages but $600,000,000 more. This adjust ment increased the price to the ulti mate consumers of every article en tering into transportation. So it can be readily seen that the question as to whether or not the advance in wages of railway employes was just, lies between the different classes of employes and not between the rail way companies and their employes. The great problem that is up for solution by the American people is to devise a method by which the relative wage may be made just and fair as between employes. January, 1921 THE NORTHWESTERN BANKER 17 D ifficu lties of Present M om ent A ssure a Safer Future Business in the United States has been on a false basis since the war started and must be put on foundation of econom y B y C harles M . Schw ab PPERM OST in the minds of American citizens today is the question: What is the mean ing of the existing slump in business and what of the future? Personally, I am an optimist. I can never see the top in oppor tunities for American business. The existing moment is full of difficulties and complexities. Here and there you find prophets of des pair. But I want to go on record as saying that nothing could be health ier for American business than the very condition through which we are now passing. It had to come. I only wish it had come sooner. The severer the storm is now, the quicker it will be over and the sooner we can emerge into clear weather and shape our course upon the sea of prosperity. Business in the United States ever since the war started had been, until very recently, upon a false basis. The disposition of many manufac turers had been to say not: “ Let me see your costs sheet,” but “ Let me see your statement of profits.” Now the true test of success in business is not profits but economy. Profits may be the result of good fortune, of a fleeting period of infla tion, of temporary conditions of any kind, but a business structure which is built simply upon the profit sheet of the moment is built upon the sands. The only business founda tions which are sure and steady are erected upon the rock of economy. The result of this experience through which we have passed is that our costs have been inflated and we have had in America both our business institutions and American individuals generally indulging in wasteful and extravagant methods. The supreme virtue of the exist ing situation is that it is compelling every business man in America, in fact, every individual in America to examine thoroughly his costs of do ing business and his costs of living. The result of it all is to force busi ness and to force individuals to start to economize and to save. The great need of the world to day is to work hard and save. This U https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis applies not alone to the laboring man, but to the man of great means. There is no place in America today for the loafer. Just as in war times, the man who failed to do his duty was a slacker, so in this present critical condition of the world’s his tory, the man who fails to work and to struggle deserves no place among honorable men. I hear men say that the greatest need of the hour is the liquidation „of labor. In saying this many have in mind the high wages now being paid to labor and industry, and mean that labor must adjust itself to a new standard of living. Now the laboring man is primarily interested not in the amount of money paid to him, but what his money will buy. If the cost of living comes down there is no ques tion that our American laboring man can maintain his present standard of living even though his wages as stated in dollars amount to a lesser sum than before. In the steel industry one-half the total cost of making steel is the cost of labor. You can, therefore, see how important efficiency and labor costs are in all items of manufac ture. The laboring man is entitled to his full share for the contribution he makes to the value of an article. The laboring man should be taken into the fullest confidence of his em ployers. He should be so sure of getting his fair share of the wealth he produces that he will work with zeal and enthusiasm. Certain it is that unless the great body of men throughout the world work with might and main to re store that which has been lost by the destructiveness of war, this world will sink to a lower level of civilization than we have been ac customed to enjoy. Certain it is, too, that labor must work as it has never worked before if it is to pro duce a sufficient quantity of goods to make possible the standard of wages which have been enjoyed during these years of inflation and of su preme prosperity. Not merely in creased production, but increased efficiency in production is essential. The world during the past few years has been a spendthrift and a waster. It has spent its life and its blood in prodigal living. It has spent a large part of its liquid wealth and has now come to a period where it can go forward only by energy and effort of the most vigorous kind. When, therefore, our business men thoroughly study and cope with these problems of economy and make up their minds to go ahead and to produce to the utmost on a smaller margin of profit than they have been accustomed to realize in the years of inflation, then our course will have been set toward a haven of safety and progress. Economy in Government expendi tures is also of vital importance. We should expect and demand the same degree of efficiency in the conduct of our Government as we require in private business. Reckless expendi ture by the Government, national, state or city, necessitates higher taxes. These taxes increase prices, and higher prices curtail consump tion. The effect of a curtailment of consumption is to increase unem ployment. If Government sets the example of waste and extravagance those evils will persist in the private lives and private business of the nation’s citizens. There is need of immediate revi sion of our tax laws. While the war lasted we have put up with a make shift policy, badly conceived and badly executed. Now that the time for real readjustment has come it is the duty of citizens to see to it that taxes are not imposed which encourage extravagance and take from industry the opportunity to invest its earnings. Only by such in vestments can factories be kept running at full time, the more men will be required to work, the greater will be their output and the higher their wages. It is to the interest of Government to work with business, to encourage it and protect it. Government can not guarantee wages; it cannot guarantee employment. Laws that pretend to do this are harmful to the working man. They offer a quack 18 THE panacea that like all quack remedies fail to cure and have injurious after effects. Efficient production is the only guarantee of employment and of higher wages. Never in our life time have the shelves of the world been so bare. Examine the volume of production in most any of the great staple lines of industry and you will find that during the past two years there has been a smaller annual production that at any time since 1913. In this country the development of many of our industries has been starved during the war. This has been notably the case with our rail roads. At the moment, our export trade hangs by a slender thread. The ex changes have been moving alto gether too much in our favor. We are rapidly getting into the position where the whole world owes us money and yet cannot pay it. W e have recently seen a little cloud on the horizon in North Da kota. Certain farmers owed the bankers money. The value of the produce which secured the loans NORTHWESTERN BANKER January, 1921 went down below the value of the nationally. W e must trust in the principal. The bankers called the good faith and in the productive loans and the farmers could not pay. power of Europe, sending to them This process has resulted in closing our raw materials and goods to en something like twenty small banks able them to resume productivity, in North Dakota during the past and accepting in payment therefor,securities representing their produc few weeks. The whole world owes the United tive activities. It is a hopeful sign of the time States money and the whole world is hungry for the things the United that the farmers and the small man States can supply. Not quite a year ufacturers of the country are be ago, one of our great financiers re ginning to recognize the vital im turned from Europe and suggested portance of this factor in the sit that we create a revolving fund of uation. It is a very drastic process through $500,000,000 to finance the absolute requirements of Europe and start which we are going. The dose is dis the countries in distress on their way tinctly unpleasant. But when a doc to self support. Perhaps he did not tor is called in to treat a patient, the state the correct sum, but for lack first task he undertakes is to remove of our ability to sell to Europe from the body the utmost number of through having sufficient credit impurities. Then he begins to build available, the value of the farm prod the patient up. W e are getting relieved of the ucts of this country which Europe would like to buy, has decreased impurities in our business life. during the past few months not # The process is not complete yet. It hundreds of millions, but billions of may take some little time longer. But the patient wilbin time be cured dollars. If the business of the United and when he is cured the great body States is to go forward as it must go of American business will emerge forward, our people must take a with a vigor and an energy the world view. W e must think inter world has never known before. Endorse the Financial Publishers Association (Reprinted from Financial Advertisers' Association Bulletin) N the forward march of Ameri without a struggle, and did not can • business, with particular spring up like Jonah’s gourd vine in reference to the profession of a night. Many ups and downs have banking, it is a source of gratification been experienced since the standardto observe the high standards bearers saw the vision at the meet adopted and practiced by a small ing of the Financial Advertisers’ group of monthly bank journals Association, A. A. C. of W., in New banded together under the flag of Orleans, September, 1919. In fact, the Financial Publishers Associa the organization of the publishers tion. The flag of the Financial Pub was due to the inspiration of that lishers Association stands for some convention of advertisers, where thing. It stands first for the A. B. the publishers were in attendance. Besides qualifying for member C. Audit. Banks and other users of space in ship in the A. B. C., each of the pub financial journals have been against lisher-members is under pledge and a blank wall in the past, when it forfeit to maintain absolutely stan came to estimating the circulation dard rates— the same service for the of the mediums under consideration, same money to all. This does not with one or two notable exceptions. mean that all member-journals have rates. Each member Through the principles of the Finan uniform cial Publishers Association, adver makes his own rates, on a scientific tisers, whether local or national, basis, and certifies that his rates so have the pick of 23,24/ paid sub based and published are maintained scribers out of a possible gross without deviation. To the extent of total of 31,168. These paid sub the F. P. A. membership, this does scribers are subject to verification away with the cut-rate evil which by the Audit Bureau of Circula has been the source of endless un tions and the publishers of the certainty in the past. Moreover, the members of the Financial Publishers Association are under pledge and forfeit to fully Financial Publishers Association comply with the terms of member have adopted a uniform page size ship of the bureau on or before Janu and a uniform closing date, lending greatly to the convenience of gen ary 1, 1921. This has not been brought about eral advertisers and advertising I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis agencies, who are thereby enabled to handle the entire list with one set of cuts and on the same day each month. The members of the Financial Publishers Association are : The Banker-Manufacturer of Mil waukee. The Bankers Monthly of Chicago. The Mid-Continent Banker of St. Louis. The Northwestern Banker of Des Moines. The Southern Banker of Atlanta. The Southwestern Bankers Jour nal of Houston. The Trans-Mississippi Banker of Kansas City. Haynes McFadden, publisher of The Southern Banker, is president; Clifford DePuy, publisher of the Northwestern Banker, Des Moines, is vice president; and R. Fullerton Place, editor and manager of the Mid-Continent Banker, is secretary. The Financial Advertisers’ Association heartily endorses those policies for which the Financial Pub lishers Association stands, and wel comes those innovations referred to above as things which our own Association has worked for since its organization. January, 1921 THE NORTHWESTERN BANKER 19 Increasing Farm Production by Eradication of Pests U. S. Department of Agriculture also gives encouragement to the rearing of fur bearing animals under conditions o f domestication By W . B. Bell Bureau of Biological Survey, U. S. Dept. Agriculture HE elimination of loss and waste connected with produc tion is of first importance in industrial development and to the financial interests of the country. Bankers, manufacturers, producers of raw materials, and consumers are all concerned with this feature of our economic activities. It is well known that in many industries the chief means of decreasing the cost of finished products, in fact the main source of profit, has been the saving and utilization of items which were permitted to go to waste in the early development of the business. This recognized principle of business is receiving greater consideration in producing live stock and farm crops. At this stage in the economic de velopment of the United States a practical means to secure the in crease of production so essential to continued prosperity in our national life is the cutting off of unnecessary loss and thereby the bringing to ma turity and to market of the entire possible increase of crop, flock, or herd. A profit of 10 per cent on money invested is usually counted a satis factory return upon a business en terprise. Yet farmers and stockmen constantly see the yield of their cul tivated fields, the carrying capacity of pasture ranges, and the normal increase of their herds reduced from 10 to 25 per cent by the depredations of animal pests. They apparently accept this as a natural and neces sary feature of their business. Whether this amount of damage re mains as a debit or is transferred to the credit side of the production sheet is frequently the determining factor in the profit or loss balance of the farm or ranch enterprise. Whether the aggregate balances are debit or credit not only have im portant bearings upon farmers and stockmen but also upon the social and industrial life of the Nation through the resulting shortage or abundance of food or of raw material for manufacture and for commerce. Attention is especially invited to three sources of unnecessary loss which decrease the output of food T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis materials. Losses to live stock amounting to more than $20,000,000 occur each year on the western farms and ranges. This large loss is due to the depredations of predatory ani mals, such as wolves, coyotes, moun tain lions, and bobcats. Loss of pasturage, hay crops, and of wheat, barley, and other cereals aggregate more than $300,000,000 a year. This loss is due to the destructiveness of Feeding Mink on Biological Survey Fur Farm in Adirondacks prairie dogs, ground squirrels, jack rabbits, pocket gophers, and similar rodent pests. Losses of food prod ucts and other property to a value of more than $200,000,000 annually are due to damage and contamination of house rats and mice. These make a total drain on agricultural resources in the United States each year of more than $520,000,000. Consider what the transfer of this debit item to the credit side of the farm account would mean, not only to the farmers but to the whole country. In many cases it is not the grow ing crop only that is involved in the destructive activities of these pests, but also the permanent stands, such as alfalfa, or orchards, and vine yards, the results of long time care and investment. The fact that practically all of the land in the United States suitable for agricultural production and stock raising has been taken up by farmers a n d stockmen b r i n g s forcibly to our attention the import ance of a full utilization of the land for the purposes to which best adapted. The producing and carry ing capacity must not only be main tained but increased. So long as there were great areas of fertile lands unoccupied which were available practically for the taking, the incen tive to reduce sources of loss, and to use land for those purposes to which it is best adapted was not so great as it is at present. In these ways it is possible to increase the quantity and the variety of crop that may be harvested upon agricultural lands or the amount of live stock that may be carried on range areas. The United States Department of Agriculture, through its Bureau of Biological Survey, has discovered and demonstrated practical oppor tunities along these lines in connec tion with its work in controlling and eradicating animal pests. The methods which are being em ployed are of proved effectiveness. The plans for organization and con duct of the co-operative campaigns have been perfected, and adapted to concerted action in community and state-wide movements. In the operations to protect live stock from the ravages of predatory animals the department and its cooperators during the past year em ployed a force of from 300 to 400 hunters, who trapped and shot 523 wolves, 21,558 coyotes, 189 mountain lions, 2,987 bobcats, 10 Canadian lynxes, and 94 stock-killing bears, making a total of 25,361 animals thus killed. Carefully organized poisoning campaigns conducted on important sheep ranges resulted in the destruction of an additional num(Continued on page 88.) 20 THE NORTHWESTERN BANKER Unfair Financial Burden Placed on Farmers Dem ands Relief By F. W . T h o m p so n Former President Farm Mortgage Bankers Association of America ARM ING is America’s greatest industry, producing over $20,000,000,000 of new wealth every year. Forty-five per cent of our popu lation is agricultural. In other words, nearly one-half the purchas ing power of this country is de pendent on agricultural prosperity. These statements demonstrate that the very life of the nation de mands the maintenance of the agricultural population in a condi tion of relative prosperity. If the farmer is forced into what amounts to bankruptcy, he must curtail operations, and stop buying. In other words, the entire business of the country would fail if the farmer F https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fails. He is the keystone of the arch. He supports the manufac turer, the merchant and the laborer. The railways depend on him to keep them running. The government it self could not function without his financial support. It must be obvious, therefore, that the welfare of the country as a whole is at stake unless immediate and adequate re lief is forthcoming for the situation that now confronts the American farmer. In the face of such a crisis, the members of the Farm Mortgage Bankers Association of America feel that a very special obligation rests on them to emphasize the problem and to contribute to its solution the January, 1921 best wisdom that 50 years of finan cing the farmer can supply. This long and intimate knowledge of the farms’ problems necessary to suc cess in the gigantic task of financing the agricultural development of the United States is the basis for the following statement of the needs and of remedies proposed. There can be no valid objection to the farmer bearing his just share of the burden of deflation which the entire world now confronts. The point at issue is that the farmer is obviously bearing an undue share of the burden at the present time, with results which threaten not only hardship to the farmer but virtual bankruptcy in many quarters, both to the farmer and his many credi tors. Such a result would be a na tional disaster, threatening business chaos, and the future food supply of this country and the world. It seems to be generally admitted that the great difficulty is want of confidence in the stability of prices, even at present low levels in the face of present strained credit condi tions. In other words, there is no buying in the market because the prospective purchaser at home and abroad is afraid of prices being forced still lower, even though it is obvious that lower prices can only be brought about by what amounts to the bankruptcy of the producer. Absence of credit facilities contrib utes to this hesitation by cutting off the purchasing power of both foreign and domestic buyers and de stroying the power of farmers and breeders themselves to market their products in orderly fashion. We, therefore, have the anomalous situa tion of demoralized markets in spite of the fact that there is admittedly no oversupply of farm products in the face of world needs, and that prices at all fairly reflecting a supply and demand basis would be much higher than present levels. Inasmuch as the present situation has been largely brought about by necessary government interference with what would otherwise be the restraining effect of the law of supply and demand, it is quite rea sonable to appeal to the govern ment—which was compelled to create this situation— to relieve it so far as it may do so without violation of economic principles. Precedent for such action in behalf of the agricultural interests may be found in the action of the government in relieving the railroads of too sudden a readjustment on their return to private ownership. It cannot be (Continued on page 103.) January, 1921 THE NORTHWESTERN BANKER 21 Country Bankers of Middle W est Are Affected by Foreign Trade Interior banks must be able to give information and service to the small city manufacturer who is now interested in overseas trade By W illis H . B o o th Vice-president Guaranty Trust Company, New York P to- the present time the banks in the interior of the United States have played a comparatively small part in the de velopment of our foreign trade. As a result of the war, this country has been forced into many new indus trial and financial activities that reach out into every foreign country, activities which affect the welfare of the smaller communities nearly as much as they do those of the larger cities. Manufacturers in small towns throughout the United States have become interested in the possibilities of foreign markets, and they naturally are looking to their local banks to advise them regarding their foreign trade problems, both actual and potential. W e believe that the time has come for the in terior bank to realize that its busi ness is the same as all others—that the biggest thing it has to sell is Service, and that at the present moment one of its greatest oppor tunities for service is to aid in the development of American foreign trade. W e have learned by recent ex perience that the factories of Amer ica are today so huge and their out put at full capacity is so great that the domestic market cannot regu larly absorb it. It is only by a con stant flow of overseas trade that we can run full time all the time. To do less than that means homes in America in which the bread-winner is out of work. It means “ part time” in many factories, or mills that are entirely shut down. Addi tional orders from any source tend to reduce overhead expenses of produc tion, and tend also to reduce the cost of raw materials by increasing the quantity bought. All the ad vantages of large scale production come into play when these export orders are received. Increased orders from foreign countries tend to change the sea sonal demands to year round de mands. The manufacturer who has a market for his goods in South America, for instance, possesses a great advantage, because the seassons there are exactly the reverse of U https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis our own. And so, because the markets of all the world are greater and steadier than the markets of any one country, the American manu facturer and merchant must culti vate the foreign field, and the interior bank, in co-operation with the inter national bank, must be prepared to offer facilities necessary for the prompt and efficient handling of for eign trade transactions. That the interior bank is vitally interested in the development of for eign trade is evident from the fact W IL L IS H . B O O T H that a large proportion of the manu factured goods exported from the United States are produced in towns with a population of fifty thousand or less. There are two thousand one hundred and forty-nine towns of this size. Cities of fifty thousand and under make up a large proportion of our manufacturing area and present al most unlimited possibilities from the foreign trade standpoint. It is obvious that the interior bank cannot set up elaborate ma chinery and an expensive personnel equipped to answer specific in quiries regarding foreign trade. The international bank, has, however, built up a world-wide network of branches, affiliations and special correspondents, backed up by staffs of experts in the metropolis, which is freely offered to the interior banker in order to assist him to de velop the foreign trade of his com munity. The international bank has, in, fact, created facilities which make it possible for the exporting and importing clients of the inland bank to do business on a safe basis with the merchant in the interior of China, the ranchman in Australia, the miner in Africa, and the planter in Latin America. To illustrate concretely just what this means, let us examine the facili ties which are offered to the interior bank by the large international finan cial institutions. First of all, they have direct banking connections with Great Britain and Continental Europe, the Near East, Latin Amer ica, South Africa and Australia, with China, Japan, British India, the Dutch East Indies, and with the Straits Settlements. They are in direct and constant communication with thousands of correspondents in every trade center of any importance throughout the world. In their foreign trade services those international banks have created departments to give specific commercial information, by inter view or by mail, regarding the pros pects for the sale of American goods abroad. They have immediate access to reports regarding the credit standing and commercial probity of hundreds of thousands of foreign firms and corporations, all of them carefully revised to cover changes made during the war. Here is a concrete example of the kind of service which an interior bank should be able to render: In an Illinois town of about ten thous and inhabitants there is a small fac tory manufacturing a line of tools. As a result of advertising in export journals, this manufacturer received an order from Buenos Aires for two thousand dollars’ worth of goods. The buyer stipulated that the mer chandise was to be sent forward with draft attached to documents, which were to be delivered against the acceptance of the draft at 60 days sight. It was the manufacturer’s first export order, and he went THE 22 immediately to his local bank for advice as to how the goods should be packed for export to Argentina and what railroad and shipping docu ments were needed, and above all how he was to get his money. The interior bank was able, through co operation with its bank correspon dent in New York, to obtain a quick report on the credit standing of the Argentine customer, which showed that he was a perfectly good credit NORTHWESTERN BANKER risk. Information was also supplied as to packing and shipping, and the interior bank was able to aid its cus tomer in financing the transaction. It cannot be too strongly em phasized that the interior banker has an important part to play in the de velopment of our import trade, as well as that of our exports. Our dependence upon other countries for foodstuffs and raw materials grows constantly greater with the increase T en Bull Points in Present Business Situation By Roger W. Babson 1. The great mass of working people in this country still have their Liberty Bonds. It is true that corporations and many small holders have sold theirs. The great bulk of wage workers, however, still retain theirs, and they will not cease buy ing merchandise so long as they hold these bonds. 2. Prohibition is a great factor for prosperity, the importance of which is not fully realized. Previous to July, 1919, several billion dollars a year were being spent by people of this country for drink. About 20 per cent of this money has gone into the savings banks; but the balance has gone into building homes, buying merchandise, raising the standard of living. Whether 100 per cent prohibition has come to stay indefinitely, I do not know, but it surely must be as much of a factor for good business during the next few years as it has been during the past year and a half. 3. The Federal Reserve System is working well. It is popular to cri ticize the Federal Reserve Board; but such criticism is usually directed against their good acts rather than against their lax ones. The Federal Reserve System cannot expand in definitely any more than can a rub ber ball; but we have substituted an elastic system, the good results of which are bound to continue. 4. Advertising has become a great economic factor for the pro ducing and steadying of business. The old form of advertising, which was largely of the luxury type, has been replaced by a new productive form. This new form of advertising has come to stay, and could t>e a great factor in preventing business panics such as we have had in the past. 5. Though our foreign trade has greatly grown during the past five https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis years, it is no greater proportion of our total trade than it ever was. If we lost all our export trade today, it would reduce our total business only about 5 per cent. 6. Standardization in manufactur ing is rapidly increasing. Great im provement can still be made along these lines. The Ford system can be applied to a great many more commodities than automobiles. Concerns that used to manufacture 10,000 different articles are now doubling their capacity, but halving the number of articles they produce. All of this is along the line of efficiency and tends to continue pros perity. 7. The seasonable fluctuations in industry and commerce are being gradually ironed out. Part of the loss through seasonable manufactur ing and purchasing is being elimi nated by concerns-taking on different lines. Thus the coal merchant is going into the ice business, and vice versa. Much of the difficulty, how ever, has been due to custom, and this bad custom is rapidly being changed. 8. Taxation will surely be re duced. Not only will the new ad ministration reduce expenditures, but our system of taxation will be changed so as to encourage produc tion rather than penalize it. 9. Modern education for executives and employees is rapidly being in troduced. Industrial education is constantly growing. 10. The United States has accu mulated great wealth during the past five years, and has paid almost all of its foreign indebtedness. We are now a creditor nation instead of a debtor nation. Our people are the richest of any on the face of the earth. F r o m an a d d re s s a t th e B o s t o n C ity C lu b F o ru m . January, 1921 in our population and the productive capacity of our industries, '• In order to provide a sustained market for the surplus products of our manufacturers, We must have a regular and increasing supply of many commodities which are not produced within the confines of the United States, or which are produced in such small volume as to be en tirely inadequate for our require ments. We must obtain manganese for our steel mills from Russia and South America. Our tanneries must have quebracho from Argentine; our automobile tire industry must ob tain crude rubber from Brazil; our machine shops, rail mills, armored plate works, and wire rope factories must have nickel from Canada and New Caledonia; our tinplate manu facturers must import their tin from the Malay Straits and from Bolivia; our silk factories must get their raw product from China and Japan; our clothing wools must be imported from Australia and Argentina; our manufacturers of twines, canvas linens and laces must get their flax from Russia and Belgium; our bur lap makers must get their jute from India; the sisal which is used to make our binder twine, which is so essential in the harvesting of our crops, must come from Yucatan. We must also import large quantities of cocoanut oil and other vegetable oils from the Dutch East Indies and from the Pacific isles; coffee from Brazil, tea from China, India, Japan and Java; cocoa from Venezuela; sugar from Cuba; rice from the Far East; spices from the East Indies, platinum from Colombia; and vanadium from Peru. It cannot be too strongly empha sized that in the long run interna tional trade must be to a large ex tent the exchange of goods for goods. In encouraging Europe and other countries to liquidate their debt to us in goods, (for they can not send us gold without further de preciating their inflated currencies), it does not mean that this debt can be liquidated only in articles of European origin. For example, Great Britain might offset her ad verse trade balance with us on direct interchange of commodities by a debit balance owing by us on our imports of jute from India, wool from Australia, hides, skins and wool from South Africa, etc. A debit balance owing by the United States to Argentina for our imports of the raw products of that country could be offset against the balance due from Argentina to England, and in turn by England against the United States. January, 1921 THE NORTHWESTERN BANKER 23 Young Man’s Success Is Assured Through “Self Betterment Definite rules of right thinking and living an important asset for the young banker who is anxious to “ get ahead” By O. J. M oore PRESUME this subject of “ Self Betterment” might also be known as the “ Development of Personality.” This at once involves a consideration of the human mind and its proper classification in such manner as to enable the individual to proceed toward its highest development. The mind of man is conscious and subconscious, objec tive and subjective, external and in ternal. The development of per sonality is the outgrowth of the development of the mind and gives us personal power, physical health, mental brilliancy, remarkably ability, extraordinary talent, rare genius— these are attainments which the sub conscious of every mind can readily produce and bring forth when prop erly directed. What man may de sire to become, that he can become, and the art of directing and impress ing the subconscious, is the secret that we should give our greatest attention to. Nothing is impossible. The great within is limitless. I am a firm believer that my soul is the connecting link as between the ma terial and the infinite. It is our belief that man was made in the likeness and image of God, and that being a fact we have right to claim a Divine Heritage. Man’s place in the animal kingdom is differ entiated by his faculties of intellect as compared with the fixed limita tions of instinct, as ruling the re maining creatures of the earth. While we are offered bounteous premiums for the development of our intellect and our character, we are also charged with the great re sponsibility of action under free will. It would seem that the Creator has decreed that Man’s opportunities and accomplishments be without limit, and, therefore, the shaping of our destiny is left much within our own making. It has been said that the boy may be better developed by commencing the cultural work on his grandfather. There is little question but what inheritance and environment have much to do in forming disposition and marking caliber. At any rate we are here to day considering and endeavoring to solve the secret and the problem of l https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis our own “ Self Betterment;” young and middle aged men keenly de sirous of rounding out our lives in a fullness of service worthy of the contemplation of our Creator. This task of privilege, as I prefer to call it, is much a personal matter, and rests with each individual himself. Before such improvement is possible it is necessary to locate one’s “ self” — “ The men within thee.” That is basic and affords a mental founda tion to work upon. It is said that “ self” is the point of individual being where all one’s interests meet. This allocation of the individual “ self” accomplished, a valuable per spective is obtained, and from that vantage point of observation we may This splendid paper was read by M r. Moore, who is a wholesale grocer at Sioux City, Iowa, before a recent meeting of a young men’s club. It is so full of in spiration and valuable thought that it is certain to be of interest and benefit to young bankers and bank employes.-—The Editor. proceed towards a general classifica tion of our many natural tendencies, desires, faculties, etc., in order that the work of self-building may pro ceed in orderly fashion along lines consistent with the particular design which nature has laid out for each one of us. First of all let us ask ourselves, “ Do we sincerely and honestly de sire ; yes, and are we forcefully de termined to enter upon a life’s work of self-building, realizing that no success worth while can be attained in less time than approximately a quarter of a century.” The answer being in the affirmative then we will first take up the faculty known as “ Power of W ill.” This is nature’s endowment for the evolution of Man’s psychic self, or soul, once an intelligent operation of the “ Power of W ill” commences to actuate the individual “ self,” or “ personality,” begins to unfold. W e are now fairly started in the great science of man building. The individual is on his way towards the chosen goal of his life’s greatest possibilities. He is more or less conscious of the line of endeavor which he wishes to follow, and he is grasping at every known opportunity to insure the most favor able results. He has become aware that he need not content himself with the slender equipment of facul ties which nature gave him at birth. He has learned that by exer cising his free will toward gaining education he may acquire very many new functions, or capacities, which do not come by birth or inheritance. It is said that the “ Power of W ill” is higher than the mind, and hence its rightful duty is to govern and direct the mind just as it is the pre rogative of the mind to direct the affairs of the body. Thus having established the guardianship of “ Power of W ill” we have come to realize the high privilege granted to each man and woman to make as much out of himself, or herself, as they may desire to do, remembering that the greatest of all possessions is self-possession. Self-possession im plies the capacity of self restraint, self-compulsion, and self-direction. Emerson has said there can be no driving force except through the conversion of the man into his “ W ill” making him the “ W ill,” and the “ W ill,” him. The mind again has the power to summons, as it were, a special de gree of intensity of “ W ill,” and to draw the individual with great force into any particular act. The human eye, for instance, may be made to fairly blaze by the application of will power to the act of gazing. Muscular effort becomes terrific when the whole “ Power of W ill” is thrown into the act. It is to be seen that excepting we would exercise this great gift of power we are over looking one of our greatest herit ages, and yet we all know that there is very little attention given to this “ Divine Faculty.” “ The longer I live,” said Buxton, “ the more certain I am that the great difference be tween men, between the feeble and the powerful, the great and the insig nificant, is energy— invincible deter mination— a purpose once fixed, and then death or victory. That quality will do anything that can be done in this world, and no talents, no cir- 24 THE cumstances, no opportunities will make;a two-legged ,creature a man without it.” Napoleon said, “ When the W ill fails the battle is lost.” It has been said the “ perfect will” is high priest of the moral self. A true cultivation of “ W ill” is not possible without reference to the NORTHWESTERN BANKER highest reason, or ideas of right and wrong. The crowning phase of the Will is always ethical. Resolute Will scorns the word “ impossible.” It was said Washington illustrates the persistence of moral resolution, and that Jesus Christ incarnates the Will whose law is holiness. A Will January, 1921 with righteous aim creates moral character, and moral character is the underlying foundation of all human happiness. At the earliest time pos sible the individual should settle down upon some one particular line of endeavor, and concentrate all of (Continued on page 61.) How to Put Liberty Bonds at Par Arkansas banker advocates plan which will place these government securities at par within six months By I. H . N a k d im en President City National Bank, Ft. Smith, Arkansas HE near approach to a finan cial crisis has been discussed by business men and bankers in national magazines for months. Financial experts have advanced numerous theories designed to place Liberty bonds at par and to relieve the deplorable financial situation prevalent throughout the country. Yet few of these theories have proved practicable because their de signers feared to incur the dis pleasure of the great financial inter ests. I have a plan to offer whereby Liberty bonds can be placed at par within six months and possibly sooner. Moreover, if my solution is put in force it will relieve the pres ent monetary difficulty. Three steps are necessary in this plan. First, Liberty bonds can be placed at par within six months by amending Section 616 A of the Fed eral Reserve Act, authorizing the Federal Reserve Bank to issue Fed eral Reserve notes against Liberty bonds, instead of issuing notes against commercial paper and allow ing the Federal Reserve banks to loan money secured by Liberty bonds at 4 per cent. In addition to placing bonds at par, such! a step will be a wise change. Second, it is within the power of the governor of the Federal Reserve Board at Washington to relieve the financial situation. He can accom plish this by issuing an order au thorizing all Federal Reserve banks to receive all items from their mem ber banks at par and to give them immediate credit. This will elimi nate the float that the banks are now carrying. My plan is to let the Federal Reserve banks carry the float instead of the local banks. Third, let the Federal Reserve banks eliminate at least fifty per cent of the commercial paper. Many jobbers have been accused of hoard ing merchandise, in anticipation of T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis higher prices. These merchants have been willing to pay a higher rate of interest on commercial paper, as evidenced by events of the past three months. By reducing the commercial paper fifty per cent, it will force them to take the mer chandise out of its hiding place and to sell at a legitimate profit, thereby reducing their indebtedness. The secretary of the treasury is offering treasury certificates bearing 6 per cent interest for one year. In my opinion, this is inconsistent, be cause these loans are secured by the very best collateral in the world. The last issue of treasury certificates was for one billion dollars and was over-subscribed. Therefore, is there any reason to believe that the next issue of only four hundred million dollars will not be over-subscribed? So why should the rate of interest be raised? It was only a few months ago that the secretary of the treas ury stated that all treasury certifi cates outstanding would be paid within a year out of the income and from the unsold salvage of the war. According to the treasurer’s report for the quarter ending March 31, 1920, there was a surplus of nearly four hundred millions dollars. Be tween June 30th, 1919, and May 31st, 1920, the total gross debt of the United States was reduced $1,600,000,000. Between August 31st, 1919, and May 31st, 1920, our float ing debt outstanding (loan and tax certificates)' was reduced $1,150,000 , 000 . In consideration of the reduction the government has been making, is there any reason why it is necessary to raise the interest rate to 6 per cent? Moreover, the treasurer also states that eight hundred member banks in the leading cities, control ling about 40 per cent of the com mercial bank deposits of the coun try, have reduced their loans upon government securities about two billion dollars. They have in creased other loans and invest ments by about four billion dollars. This change has come about through the persistence of the Fed eral Reserve Board. The first statements through newspapers and magazines as to the reason for raising the rate of interest on Liberty bonds and forcing them out of the banks, are still fresh in our minds. It was first contended that such action was taken on speculative stocks. The second con tention was that too much money was spent on buying automobiles and luxuries. Neither of the above contentions are fair to the banker or to the auto mobile dealer and manufacturer. The real cause of inflation is exces sive investment in oil stock and in speculative stock. People grew alarmed over the drop in Liberty bonds, and feared even further re duction in value. W hy is the Federal Reserve Board so persistent that Liberty bonds be taken out of the banks? Would it not be fully as reasonable that railroad bonds, telephone bonds, or municipal bonds should be taken out of the banks? It is impossible to obtain an accurate statement at this moment, but it is a conservative guess that there is fully one billion dollars more of municipal, railroad and other watered bonds than Liberty bonds in the banks. The solution I have offered must be adopted and put in force with good intentions and sincere motives, otherwise it will not be a'success. The faith that I have possessed in the Federal Reserve bank since its infancy is such that I am ready and willing to fight for it. The Federal Reserve Act is one of the greatest pieces of legislation ever placed on our statute books, and every Ameri can citizen should protect it as well as help improve it. January, 1921 THE NORTHWESTERN BANKER 25 Present Prices of Farm Products W ill Cripple All Business Banker must give relief to farmer to re-establish markets and strengthen the credit situation By A . J. G rainger Assistant Cashier Farmers Bank, Salix, Iowa E H A V E witnessed in the past few weeks, a most spec tacular break in the price of farm products. It is perhaps not very clearly understood that every individual in this country is going to be more or less affected in some way by this most radical turn of affairs; at least one would judge this to be the case from the very differ ent opinions that have been ex pressed and the various contrary positions that have been assumed by the different classes of people, as their personal immediate, e n d s seemed to dictate. Yet sooner or later it is destined to work some injury to all classes in some measure. The farming industry represents invested capital of over eighty bil lions of dollars, a sum larger than that represented by all of the rail roads and all of the manufactures and all of the mines and quarries of this country. Surely here is an in dustry that must be recognized as essentially important and vital, on account of its magnitude, on ac count of the vital necessity that exists for the uninterrupted supply of its products, and on account of the great number of our people who depend on it, directly or indirectly for livelihood. It seems very clear that if we are foolish enough to re duce this huge industry to bank ruptcy, where it is now headed, that we are sure to strip the gears in our industrial machinery, and we run a very good chance of putting the whole machine clear out of order. Think what it will mean to force the farmer to sell his grain at pres ent prices. It will be impossible for him to meet half of his obligations, credits will remain strained to the limit, he will be totally out of the market as a buyer for all of the wares of the merchant and manufacturer, business will drag along and we will be headed straight for the rocks. The situation is very real and is very pressing. Something must be done. The farmers have raised their crops and have labored well under .the im pression that they would receive adequate compensation. The speculators have resumed the W https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis old game of selling the grain short on the board of trade, thus smash ing the markets to extremely low figures— much below the cost of production. If they can scare the farmer into selling at these prices they are assured of a good fat profit later on when the price comes up again as it surely will eventually. The farmer realizing that he cannot make enough money, at present prices to meet his obligations, A . J. G R A I N G E R naturally refuses to sell. The mer chant notices that his sales are fall ing off, business getting a little dull, and credits are getting slow, he begins to see trouble ahead. The banker sits tight and pulls on the lines, and occasionally some unwise banker, lends fuel to the flame, by proclaiming that credits will not be available to help the farmer hold his grain, and advising his farmer friends in the good old paternal way, to “ sell the grain at any price— don’t make a bit of difference what it costs, take what you can get.” The farmer can’t see it that way. It took him twelve months to raise that crop, and its g'oing to be an other twelve months, until the next one, in the meantime, obligations have to be met and corn at 40 cents won’t get him to first base. So he is just waiting for something to turn up. The saddest spectacle of all is that of our bankers asking the farmer to sell his stuff at these prices, prices that they know are far below cost, with the idea, that in times of depression and readjust ment, the element of cost cuts no figure, etc. But— let me tell you something: I will grant that in times of depression and industrial readjustment it may be very well to ask the merchant and manufacturer to take a loss on a certain lot of goods that he may have on hand, because they have frequent and rapid turnovers in their business and if they happen to lose a little on one job of goods they will make it up very soon on the next one, and furthermore, mark well, the matter of price and quantity of goods on their hands, is always elective with them, that is, they have used their own judgment and acted on it in buying their goods, if they get caught a little, it is due to mistake of judg ment, that’s all. In the case of the farmer, he has but one crop each year, and furthermore, the price he has to pay for the labor, seed and material with which to raise this crop is not elective with him, he has to take the prices made by some one else, he has no option in the matter, it is not a question of judg ment, it is a case of necessity. You can see plainly that there is a ma terial difference in their position, and it is very clear to my mind that the bankers who have openly taken position against the farmer are very much in error. Anyone familiar with credits can see very clearly that a rush sale of the farmer’s grain at these prices would simply throw the grain into the hands of purchasers, who surely must pay for this grain, and they must find the money to pay it with and this money must come from (Continued on page 65.) THE 26 NORTHWESTERN BANKER Gradual Marketing of Produce W ill Solve Liquidation Farmers should sell grain and stock-in orderly fashion to relieve credit situation without excessive loss to business By W. T. Ries Cashier Calhoun County State Bank, Manson, Iowa HE bankers of Iowa met in conference with the farmers in four sections of Iowa a short time ago. How many of the bankers present at these meetings made it a point to listen to the farm ers private expressions of views? “ The farmer must liquidate,” was the big subject at the meeting. The farmer felt that he was the one who was being hit right in the solar plexus. When he arrived home, he did some tall reasoning. He rea soned this way: “ W hy should I be forced to sell at these present prices? What is the big reason for all this, at this time, while six months ago, things were going along fine with us? W ho is the cause for it all? Why am I the big goat? How about the merchant and other business men?” Have you ever had this experi ence lately, Mr. Banker? The farmer and the town and city busi ness man too, as a rule is a man who has a note due or past due and calls at your desk at the bank. He comes at you something like this: “ Why is it that money is so tight? Isn’t there just as much money today as there has been in the past? Isn’t my note as good as the wheat? W hy can’t you renew it for me? W ho has all this money? Seems as though the big financial interests of the country are giving us this squeeze.” I read an article in the December issue of System magazine, entitled “ W hy W e Cannot Have A Panic” written by W. P. G. Harding, gov ernor of the Federal Reserve Board. The inspiration received from this article, together with impressions made upon me at the banker-farmer conference and the experiences I have had as above noted, induced me to ask permission to have the article reprinted. The article gives the best explana tion of the “ W hy” and “ Wherefore.” W e will be pleased to send a copy of the article to any bank on re quest. Every country banker should place a copy in the hands of the people in his community. Banking and its relation to busi ness is a perplexing problem to T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis many. Make these questions clear to the customer and your bank in return will receive co-operation. As a supplement to the article written by Mr. Harding, we wrote a letter and mailed it to all on our mailing list. The two articles we feel sure will answer many of the perplexing questions and will bring about co-operation with results which must be of mutual benefit. The bank letter in part follows : “ Many people do not clearly un derstand why a bank must curtail credit or stop extending loans, why the bank at times insists on having loans paid and at times when the merchant and farmer do not like to liquidate. “ Let us give you an illustration on this point: The Calhoun County State Bank is a farmer’s bank in action, owned by 104 stock-holders, a majority of whom are farmers around Manson. The resources of the bank are used to finance the farmer and the merchant customers of the bank. The bank can loan 90 per cent of its deposits and all of its capital and surplus. When the bank has loaned 100 per cent of this amount, it must call a halt on mak ing new loans, have loans which are due paid up, or in order to extend further credit the bank must borrow from the big city bank. Our farmer and merchant customers have bor rowed from us the 100 per cent the bank is allowed to loan. That is why we call money or credit tight. “ Now then in order to allow our farmer and other customers fur ther extension of credit, for a short time till they can sell to pay back to us, we have as a bank borrowed approximately $100,000. W e can borrow for a short time only, there fore we must loan with the under standing that it is paid back within a short time. “ This bank did not buy, nor does it own one dollar’s worth of notes given to Blue Sky salesmen. The active officers of this bank do not owe the bank one penny for bor rowed money. The notes on which this bank has loaned money have been given to promote and protect the farming and business interest in January, 1921 and around Manson. Now you un derstand how and to whom this credit has been given. “ W e are now coming to the place when we as a community must pay, settle up, liquidate. With a depres sion in business at this time, the banker is taking his loss, so is the merchant, and the farmer will have to take his also. Every individual will have to assume a loss, none can escape. “ The price of corn, oats, hogs and cattle is in the mind of every farmer. Corn and oats I believe have been liquidated to the bone, farm price 45 and 30 cents. “ I believe in much higher prices for corn and oats before another crop is harvested. “ But, are all the farmers to get much higher prices? No. Here is where the farmer must share his loss. The financial condition of the individual farmer will have a bear ing on his marketing policy. “ W e .do not want, nor would we consider it good business to have all of our merchant and farmer bor rowers to pay all their loans at this time. W e believe the solution of the problem is orderly marketing. Finish fattening hogs and cattle be fore placing on the market. Sell now a part of the crop of grains to take up a part of the notes at the bank. If every borrower at this bank could at this time pay one third of all the loans granted, we could easily extend the balance. “ I do not believe pre-war prices on all things are to come at this time. It may be several years before they appear. “ Corn and oats with other things have been to the top of the hill, they have skidded down to the bottom, but in so doing are getting a start to go up the other hill, just like the boy who coasts with his sled. “ Let us look on the bright side, take off our coats, spit on our hands and get in the game of orderly marketing the farm products to liquidate the necessary obligations as soon as possible. Sincerely yours, W. T. Ries, Cashier. December, 1920.” University Will Teach Banking. A new course for students who wish to study banking will be opened by the University of Minne sota, in January, according to a recent announcement. It comes as an outgrowth of the universal com mendation for the short course on income tax problems that was given last year. January, 1921 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE NORTHWESTERN BANKER 27 N E W B A N K C O N S T R U C T IO N A Fourteen Story Bank-and-Office Building E have been awarded the contract for this bank-and-office building by The National City Bank o f Indianapolis, Indiana. W In accordance with our usual practice, our contract includes architectural de sign, working drawings, building con struction, bank equipm ent, interior decoration and furniture,and guarantees a definite limit o f cost for the entire project. Correspondence is invited from bankers who are interested in an organization competent to assume complete respon sibility for their building requirements, including architectural design as well as construction. HOGGSON BROTHERS B A N K B U IL D E R S NEW YORK CHICAGO 28 THE NORTH WESTERN BANKER January, 1921 Optimism in the Investment Market Investment bankers predict that good times are directly ahead of their business By Leslie H an son Investment Editor, Northwestern Banker PTIMISM is rampant in in pending the appearance of a favor vestment circles. Invest able market. “ The railroads are in dire need ment bankers have emerged from the blue gloom that has en of funds but they have been unable veloped them for the last several to pay the prevailing price for months and now frankly predict that money that other more prosperous good times are ahead for their busi industries could well afford. The ness. Forecasts of the future are transportation companies rightly partially borne out by developments feel that it would be poor business for them to pay 7 or 8 per cent for during the last month. December saw the start of the re money when the government was awakening of the investment market allowing them a return of only 6 per in a substantial way. After a period cent on their investment. With the of lethargy extending since the sum prospect of an easier tendency in mer months there was a revival of money the carriers are preparing to activity last month that was a sur launch their financing.” prise to even the most sanguine Asked as to whether there would observer. Unexpected financing on be a demand for securities when re a large scale went over with a bang newed activity developed, this and new buying appeared from sources which long have been dor mant, namely from large financial As to the future, the best exposition is that presented by a leading Chicago institutions and the men with investment banker following his return money. Both these interests have from an extended trip in the East, where been strong supporters in the past he had the opportunity of getting off and with their reappearance the in the firing line for a time and consulting with the men who are in close touch vestment market has been given con with the situation, and not befogged in structive assistance. their vision by a narrow scope. First As to the future, the best exposi and foremost this banker, who is the tion is that presented by a leading head of a large bond department in Chi cago, says that the investment mar .'Chicago investment banker follow ket can now look forward to a period of ing his return from an extended trip great activity on the ground that there in the east, where he had the oppor is a considerable volume of financing to tunity of getting off the firing line be floated. •for a time and consulting with the men who are in closest touch with the situation, and not befogged in banker replied in the affirmative. “ I think we may look for a reappear •their vision by a narrow scope. First and foremost this banker, ance of the large purchaser of securi who is the head of a large bond de ties in the spring,” he declared. “ Formerly the man with a yearly partment in Chicago, says that the investment market can now income of $100,000 spent about half look forward to a period of great of this on the pleasures and neces activity on the ground that there is sities of life or in the upkeep of his a considerable volume of financing business and invested the remain der. During the last two years he >to be floated. Hft says: ' “ Little industrial financing will has been forced to spend $75,000 for be attempted for sometime to come. living and part of the balance was The industrial corporations have eaten up by government taxes. Now, had their day and their need for however, living costs will absorb additional capital has been about less of his income, and he will not satisfied. Only where they have to be required to put so much into his liquidate bank loans will the indus business as formerly. Consequently he will have more left to invest.” trials attempt new capital issues. Success of financing in December •' “ There is, however, a large volume of new financing contemplated by substantiates this man’s views. A the railroads, the public utilities and number of railroads asked permis municipalities. Municipalities and sion from the interstate commerce public utilities already have entered commission for authority to issue the capital market, some of them securities which will be put out when with issues held back for some time conditions improve; new financing O https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis went over big and the large interests began to buy. Best records were the $55,000,000 new securities put out by Standard Oil of New York and Standard Oil of California, which were oversubscribed in a single day; $25,000,000 Consolidated Gas of New York notes and $5,000,000 Brooklyn Edison bonds, which appeared simultaneously and were accorded a welcome reception. The public utility securities have been shown partiality in the last month or two that is a most encour aging sign. The explanation for this is not difficult to find. Unlike the situation of industrial compan ies, with the lessened demand now existing for their products, the de mand for the services of the utilities is but little affected by changing business conditions. Moreover, they have no heavy inventories to write off, their business is con ducted on practically a cash basis, eliminating credit losses, and their fixed rates, which during the period of rising costs caused some difficulty now, with declining costs of labor and materials, will be a decided asset. Another view of the utility situa tion is contained in a letter ad dressed to clients by the investment firm of Russell, Brewster & Co., which says: “ During the past two or three years the abnormal expansion and prosperity of industrial enterprise in the country have absorbed the inter est and attention of investors to such an extent that the securities of cor porations engaged in other lines of business have been overlooked and neglected. “ This is notably true in the case of our great public utility companies whose services are so necessary to our comfort and prosperity; and as a result, their securities have de clined to ridiculously low levels. At the same time their stability of earn ing power has been amply demon strated. “ W e firmly believe that the tide has turned and that the attitude of public and political opinion is now far more favorable to this very essential branch of industry. We be lieve that the investment now in the (Continued on page 105.) January, 1921 THE NORTHWESTERN 29 BANKER C on vertin g E arly M a tu rin g Investments Into Longer Ones A great many of the short term securities issued during the progress of the war will mature early next year. It is possible to convert these investments into securities having five to fifteen years to run so as to take advantage of this low market for the new securities while realizing practically as much for the security you sell as though you held it to maturity. By this means you can perpetuate the present unusual yields of V/2% to 8^2% for periods up to fifteen years. We suggest exchanges for the following: M A T U R IT Y Avery C o., 8% Ten Year Conv. S. F. Gold Notes ............................................ ... N o v . Armour & C o., 7% Ten Year Conv. Gold N o te s ....................................................... . July Swift & C o., 7% Five Year Gold Notes ............................................................................................... Oct. S e a r s , R o e b u c k a n d C o ., 7 % Three Year Gold N o te s ............................................ Oct. National Plate Glass C o., 6% Gold N otes ................................................................................... Jan. National Plate Glass C o., 6% Gold Notes ................................................................................. Jan. National Leather C o., 8% Five Year Gold Notes ....................................................... N o v . Liquid Carbonic C o., 8% Ten Year S. F. Gold Notes ........................................... Oct. Morris & C o . , 7}4% Ten Years. F. Gold N otes ................................................................. Sept. Pfister&Vogel Leather Co., 7% Ten Year Conv. Gold Debentures. N o v . Diamond M atch C o., 7}4% Fifteen Year S. F. Gold Debentures . . N o v . M iddle W e st Utilities C o., 6% Ten Year Collateral Gold Bonds Jan. W est Penn Power C o ., 6% Five Year Conv. Gold Debentures.. . Dec. American Public Service C o., 7}4%Five Year Collat. Gold Notes July Kentucky Utilities C o., 6% First Mortgage Lien Gold Bonds . . Sept. Central Power C o., 6% First Mortgage Gold Bonds......................................... July P u b l i c S e r v ic e C o . o f N o r . 1 1 1 . , 8% Ten Year Collat. Gold Notes Sept. E a s t e r n W i s c o n s i n E l e c t r i c C o ., 7 % Three Year General M ort gage Gold Notes ........................................................................................................................................................................ Mar. 1,1930 15,1930 15,1925 1 5 ,1 9 2 3 T O Y IE LD 8.00% 7.75% 8.75% 9 .5 0 % 1, 1927 1, 1928 15,1925 1, 1930 1, 1 9 3 0 1.1930 1,1935 1,1925 1,1924 1,1925 29,1924 1,1924 1,1930 8.00% 8.00% 8.00% 8.00% 7.73% 7.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.00% 1,1923 8.50% 8 .1 5 % Further Particulars Furnished on Request McCoy &Co 1 0 5 South La Salle Street, Chicago Telephone: Randolph 461 R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 30 NORTHWESTERN BANKER January, 1921 ,-ullî w mmvQ '</£ %JMjL A l The March of a Million Hoofs From the ranges, farms and pasturelands o f the West and M iddle-W est to the great stock-yards o f Chicago moves herd on herd o f cattle, sheep and pigs to the beat o f a million hoofs. This city, the home o f so many fundamental industries, is also the center o f the packing industry. Meat products are here prepared and shipped to ports and markets throughout the world; people in many lands are served from the Chicago yards. Here, also, through the application o f science, hundreds o f by-products, vital to the needs o f humanity, are produced in the packing plants. A n industry so large and so essential to the life of the world requires comprehensive and modern bank ing co-operation. Chicago’s banks are amply able to furnish such support; among them T h e Continental and Commercial Banks occupy a prominent position. Tie CONTINENTAL am/ COMMERCIAL BANKS CHICAGO INVESTED C APITAL M O R E T H A N 50 M IL L IO N DOLLARS RESOURCES M O R E T H A N 500 M I L L I O N DOLLARS R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER 31 Recent Legal Decisions of Interest B y th e Legal D e p a rtm e n t Protesting a Check. Question: W e received a check today from an outside point, sub ject to protest, drawn on another bank in this town. The drawer of the check has not sufficient funds to his credit and the payer bank re turns the item to us with a request that we hold it a day or two with out protesting it, which, of course, in this case we have refused to do. Must a check be protested upon date of presentation? In case we did hold it, would this bank have assumed any liability? Must the payer bank return a check, in case of insufficient funds, the day such check is presented or can it hold it until the next day and then return Jt ? Answ er: Of course you know that domestic bills of exchange need not be protested for nonpayment. But if it is necessary to protest a check, that is, a foreign check, Sec tion 3060-al55 of our 1913 supple ment to the Code of Iowa, provides that: “ When a bill is protested, such protest must be made on the day of its dishonor, unless delay is excused as herein provided. When a bill has been duly noted, the protest may be subsequently extended as of the date of noting.” Failure to protest discharges the drawer and indorsers. However, we would judge from your letter, the check does not ap pear on its face to be a foreign bill of exchange. Taxing Law. Question: Would you kindly give me the taxing law with ref erence to towns of 1,500 or less for special improvements, s u c h as paving, sewers, etc., etc. What is the maximum amount (of the valuation) that can be assessed to the abutting property, and, Jf there remains a deficiency how will same be paid? I have particular reference to the town of Pomeroy. W e have in stalled paving, sewers, to an amount equal,of $350,000.00. This being a small town with lots of unimproved property, that remains an open ques tion that has not, as yet, been de cided as to the limit of assessments. Answer: W e believe that you will find the answer to your inquiry in Sections 792, 792a and 792b of the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Questions of interest to bankers are diseussed in this department and any sub scriber has the privilege of writing for information and advice on legal subjects. He w ill receive a direct reply from our attorney without fee or expense. A brief of any subject involving research in a complete Law Library, w ill be furnished for $10.00. In writing for information, kindly enclose a 2-cent stamp for reply and address “ Legal Department,” care The Northwestern Banker, Des M oines, Iowa. 1913 supplement to the Code of Iowa. The provisions of section 792 cover more than you ask, but we are setting out these sections in full. 792. ASSESSING COST OF IM PROVEM EN TS — R E P A V E MENT— DISPOSAL OF W A ST E M A TER IAL. Cities shall have power to improve any street, high way, avenue or alley by grading, parking curbing, paving, graveling, macadamizing, and guttering the same or any part thereof, and to pro vide for the making and reconstruc tion of such street improvements, and to assess the costs on abutting property as provided in this chap ter ; but the construction of perma nent parking, curbing, p a v i n g , graveling, macadamizing and gutter ing shall not be done until after the bed therefor shall have been graded, so that such improvement, when fully completed, will bring the street, highway, avenue or alley up to the established grade; provided that only so much of the cost of the re moval of the earth and other material as lies between the subgrade and the established grade shall be assessed to abutting property. And upon the repaving of streets, avenues or al leys, they shall have the power to dispose of the waste material and salvage from the old payment under such rules and regulations as the council by resolution may direct, and the proceeds from the sale of such waste material and salvage to be equitably applied upon the cost of the new improvement. Provided however, no salvage may be sold hereunder until the owner or his agent, of abutting property, shall have been given ten days’ notice in writing requiring him to elect whether he himself desires such sal vage, which notice shall be person ally served on the owner or his agent, or if neither be found, by posting in a conspicuous place on the abutting property. The election, if made, shall be in writing and filed with the city clerk. Any owner electing to take his salvage shall not be entitled to a pro rata distribution derived from the proceeds of sale of any salvage hereunder. 792a. SPECIAL ASSESSMENT — RATE. When any city or town council or board of public works levies any special assessment for any public improvement against any lot or tract of land, such special assess ment shall be in proportion to the special benefits cqnferred upon the property thereby and not in excess of such benefits. Such assessment shall not exceed twenty-five per centum of the actual value of the lot or tract at the time of levy, and the last preceding assessment roll shall be taken as prima facie evidence of such value. 792b. DEFICIENCIES— H O W PAID. If the special assessment which may be levied against any lot or tract of land shall be insuffi cient to pay the cost of the improve ment, the deficiency shall be paid out of the general fund, or for sewers out of the sewer fund provided Jor in section 931 or subdivision 3 of Section 1005, or for other improve ments out of the improvements fund provided for in section 830, or sub division 2 of section 834 or section 927 or subdivision 2 of section 1005 of the code and acts amendatory thereof as the case may be. If there be property against which no special assessment can be levied the propor tion of the cost of the improvement which might otherwise be assessed against such property shall be paid in like manner. 792g. ASSESSMENT AGAINST PR O PE R TY NOT ABU TTIN G — LIM ITATIO N S. Whenever, after January 1, 1914, any city or town council,, including the councils of cities acting under special charter, levies any special assessment lor street improvement as provided by section 792 of the code and amend ments thereto and supplementary thereof, the same shall be made in accordance with the provisions of section 792a of the supplement to the code, 1907, and shall be limited; to the amount to be assessed against private property, against all lots and parcels of land according to area so as to include one-half of the private ly owned property between the street improved and the next street. 32 THE NORTHWESTERN BANKER January, 1921 Personal Paragraphs W. T. Kirkpatrick, formerly presi dent of the Grinnell Washing Machine company at Grinnell, la., has assumed the presidency of the Griswold National at Griswold, la. $---------- $---------- $ J. B. McDougal, governor of the Chicago Federal sent out a letter district urging a lation to relieve to credit. $ Edward Reserve Bank, has to the banks in his beginning of liquithe banks’ burden ---- - $ ---------- $ O. Price, a Detroit banker, has taken up the work of evangelism. Mr. Price, was form erly vice president of the First Na tional, St. Paul. $---------- $------- — $ George Woodruff, president of the First National Bank, Joliet, 111., was the speaker at a recent dinner given by the Urbana Chamber of Com merce to the graduating class of 1920 at Urbana, 111. Mr. Woodruff is president of the Illinois Chamber of Commerce. Bernard M. Baruch, New York banker, has outlined a system of warehousing and financing that is aimed at tiding farmers over periods of scarce money. $------- $------- $ G. L. Wooley, secretary of the Hibernia Securities Company, Inc., is the author of a booklet entitled: “The Investment Value of the Bank ers Acceptance.” This booklet is aimed to make short-term invest ment more popular in the south. $---------- $----- ------ $ Simon Casady, chairman on the board of the Central State Bank, Des Moines, was the speaker at a recent meeting of the investment commitee of the department of women’s affairs of the Chamber of Commerce, Des Moines, Iowa. $----- ----- $— ------- $ Fred J. Boie, cashier of the Han cock Savings, Hancock, Iowa, has been appointed county treasurer of Pottawattamie county, Iowa. Mr. Boie has been a well known Iowa banker for twenty-two years. He will now live in Council Bluffs, but will retain his interests in the Han cock Savings Bank. $----------- $---------- $ Loren F. Parker, formerly with the First National at Newell, Iowa, has purchased an interest in the First National of Cherokee. $----------- $----$ L. A. Andrew, president of the Iowa Bankers Association spoke at the Iowa convention of the Fleece Growers Association in Des Moines. $----------- $------— $ Joseph R.Noel, president of the Noel State Bank, has been elected president of the Chicago Associa tion ofCommerce. $-----W. Fitz, $----------$ banker-farmer of Manson, la., is the author of a very interesting article published recently in several Iowa papers. The article deals with the financial situation from the position of a bankerfarmer. M. Speeding up Freight Movement Team-work counts. Handling the country’s traffic with inadequate and war-worn equipment, American railroads were still able to make a new record for cars moved in August. Prompt loading and unloading by shippers contributed greatly to this result. During September and since, this close cooperation has continued. It must go on, if trade and industry are not to suffer from lack o f trans portation. Advanced rates will insure future betterments, but they can not provide locomotives, cars and terminals for many months to come. Furthering the efforts of shippers and carriers, the Irving’s Bill-ofLading Department expedites all B /L transactions. It traces ship ments, notifies consignees and presents “ arrival” drafts daily by messenger in every part o f Mahattan. The Irving correspondent gets a credit or a progress report is made the same day. The time saved is saved for the bank, the shipper, the railroads and all American business. IRVING N A TIO N A L BANK W O O L W O R T H B U IL D IN G , N E W Y O R K R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE Martin O. Molstre, has been elected cashier of the Ray State Bank, Ray, Minn., to succeed C. L. Mikkelsen. $------------ $------------ $ Peter J. Peterson, has been elected cashier of the Bank of Long Prairie, Minn., to succeed the late William E. Lee. $------------$------------- $ T. R. Kelly, formerly cashier of Stock Growers Bank at Marmarth, North Dakota, has resigned. He is succeeded by H. H. Bond. $------------$------------- $ S. S. Stowell, formerly cashier of the First National Bank of Pukwana, South Dakota, has joined the organization of the Kimball State Bank. $------------$------------- $ F. A. Pennell, formerly cashier of the First National at McCook, Neb., has resigned from that position. Pie is succeeded by W. G. Springer of Oxford. $------------------- $---------------— $ William Bembe of Le Mars, la., has purchased an interest in the Citi zens Bank, Bancroft, Neb., and has been elected vice president of that institution. $------------$ - ----------- $ Alex Dewar, cashier of the Ortonville State Bank, Ortonville, Minn, has resigned from that position. His position has been taken by H. A. Stucke of Malta, Mont. $------------ $------------ $ Thomas A. Box, president of the Bankers Investment Trust of St. Paul, Minn., has agreed to assist in the reorganization of the Midland Packing Company, Sioux City, la. $ $ $ Robert Muckier, special represen tative of the First National Bank of Minneapolis, is to be cashier of the Sioux Falls National Bank, Sioux Falls, South Dakota, after the first of the year. $ $ $ W. H. Lutz, president of the Des Moines Clearing House and presi dent of the Home Savings Bank, pre sided at the dinner recently given at the Hotel Fort Des Moines by the Des Moines Banker’s Club in honor of Mr. and Mrs. Herbert Hoover. $----------- $------------ $ Henry C. Flower, son of Henry C. Flower, chairman of the board of the Fidelity National Bank and Trust Company of Kansas City, Mo. has just returned from a trip around the world for the purpose of study ing banks and finance in other coun tries. Mr. Flower was the speaker at a recent morning forum of the Fidelity company. NORTHWESTERN BANKER H. H. Heins has been appointed vice president of the First National of Chicago to fill the vacancy caused by the death of M. D. Witkowsky. $ $ $ Fred I. Kent of the Bankers Trust of New York was the guest of the Forum of Chicago Chapter of Ameri can Institute of Banking at a recent meeting. $------------ $------------ $ Berton R. Herring, formerly of the Lee Higginson & Company, Chicago, is now associated with the sales department of the Federal Securities Corporation. $---------------— $-------------------- $ Frank L. Erion, general manager of the Western Adjustment and In spection Company, Chicago, will accept a position with LloydThomas Company, Appraisers, Chi cago. $------------- $----------- $ Raymond I. Tennant, manager of the service department of the Mer chants National, Minneapolis, has been elected treasurer of the Minne sota department of the American Legion. $------------- $----------- $ E. L. Johnson, Waterloo, Iowa, has been elected to succeed him self as Class “ A ” director by mem ber banks of Group Three. Mr. Johnson received 311 votes out of the 321 votes cast for first choice. $------------- $------------ $ George E. Barstow, Jr., is the head of a new firm in New York to be known as Barstow & Company. Associated with Mr. Barstow are H. G. Conkling and Seth S. Spencer, Jr. The new firm will handle bonds for investment and a general brokerage business. $------------- $----------- $ Adolph Kopp, manager of the New York branch of the Phillipine Na tional Bank, announces that Senor Venancio Concepcion has resigned from the presidency of the Phillipine National. E. W. Wilson, present vice president of the Anglo & Lon don Paris National Bank of San Francisco, will succeed SenoryConcepcion. $------------- $------------$ B. G. McCloud, assistant to the governor of the Federal Reserve Bank of Chicago, will be associated with the Union Trust Company as an active vice president after the first of the year. Mr. McCloud has been with the Federal Reserve for four years. Previous to that time he was with the Chicago Clearing House Association and with the First National of Chicago. 33 Developed through the growth and experience of more than half a century The First National Bank of Chicago James B. Forgan, Chairman of the Board Frank 0 . Wetmore, President and the First Trust and Savings Bank James B. Forgan, Chairman of the Board Melvin A. Traylor, President offer a complete financial service, organized and main tained at a marked degree of efficiency. Calls and corres pondence are invited relative to the application of this ser vice to local, national and in ternational requirements. Combined Resources over $ 3 0 0 ,0 0 0 ,0 0 0 R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 THE NORTHWESTERN BANKER Acme Chautauquas Greater Chautauqua Value Through Standardized Methods of Operation ; * When a community contracts for a Chautauqua, it is, in the last analysis, the program that they are buying. While transporta tion, tent, advertising, booking and management are unavoidable inclusions in the cost, these are of importance only as they con tribute to the delivery and quality of the program and the bringing together and comfort of the audience. To furnish bigger and better programs at a lower guarantee, through a more complete standardization of methods of operation, has been the fundamental purpose and policy of the Acme Chau tauqua System frpm ,the beginning. W e have carried the idea forward with a thoroughness not approached by any other Chau tauqua System .operating in our territory. W e operate only fourday Chautauquas; we have one grade of program, at a standardized price; we date and route only in regular itinerary. Instead of routing two or three differing programs or circuits through the same territory, Acme routs only one. Our estimated average distance for talent in 1921 is 27 miles. With varying cir cuits, programs and types of contract, our office and management overhead would be doubled, if the same degree of efficiency was to be attempted. .It is obvious that the advantages of this plan would be manifest \ from the beginning—but the fascinating part is that its possibilities seem almost unlimited. Our budget for talent for 1921 is 37 per cent greater than our first year, and increase of guarantee only 18 per cent, with profit-margin per town remaining practically the ■ same. While transportation rates have been increasing, we are actually beating them by decreasing the average distance per town in moving our people and equipment, and are giving more program value for the money than ever before. Acme Chautauqua System Des Moines 8 ^ . 0 0 will bring you by return mail over two hundred suggestions fo r advertising your bank and trust company services. CORNELIUS BAKER 119 S. F o u rth S t. P H IL A D E L P H IA January, 1921 Professor Harold G. Moulton of the School of Commerce and Ad ministration of the University of Chicago, well-known economist and author, whose latest work, The Financial Organization of Society, is attaining wide popularity, has been elected an honorary member of Chicago Chapter of the American Institute of Banking in recognition of his service to that organization. $------------ $------------ $ L. B. Bartholomew, secretary of the Central Trust Company, Des Moines, has been elected vice presi dent of the Bankers’ Trust Com pany. Mr. Bartholomew will assume active charge of the trust and investment departments of that company after the first of the year. $------------- $------------$ Boyd Brann, traveling representa tive of the Northern Trust Com pany, Chicago, has arrived at the final interpretation of the word Service. At the recent opening of the Northern Trust & Savings Bank of Des Moines, Mr. Brann was caught in the spotlight while groom ing a front window with a bucket of soapy water. $------------- $------------$ Marvin E. Holderness, vice presi dent of the First National Bank of St. Louis, has been elected president of the Kiwanis Club, St. Louis. Mr. Holderness is also vice president of the Missouri Athletic Club and has been president of the Sigma Alpha Epsilon fraternity, which has chap ters in the leading universities of the country. $------------ $------------ $ Edmund D. Hulbert, president of the Trust Company Division Ameri can Bankers Association, and presi dent of the Merchants Loan and Trust, Chicago, announces Thurs day, February 17, 1921, as the date of the tenth annual banquet of the Trust Companies of the United States. The second mid-winter con ference of the trust companies will also be held on the same day. Both conference and banquet will be held at the Waldorf-Astoria Hotel, New York. $------------ $------------ $ First National, Sioux City. Resources and liabilities of the First National Bank, Sioux City, Iowa, are $16,469,086.07. Officers of the First National are: John J. Large, president; F. A. McCornack, H. A. Gooch, L. H. Henry and J. L. Mitchell, vice presidents; O. D. Petit, cashier. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER 35 “More Acres Per Hour’’ Means More Dollars Per Acre T h e farmer w h o w o u ld m ake a profit m ust w atch h is la b o r c o s ts c a r e fu lly . T o m a k e a fa ir and le g i t i m a t e p r o f it h e m u s t r e d u c e th e c o s t o f farm ing per acre to a m inim um . In doing so the tractor is his greatest h e lp — in fact, a necessity. W e u rg e th e b a n k e r s o f A m e r ic a to in vestigate care fu lly the possibilities o f the m o d e r n fa rm tr a c to r . W e b e lie v e th a t th e fu tu r e o f A m e r ic a n a g r ic u ltu r e rests u p o n th e d e v e l o p m e n t o f p o w e r farm ing. T h e soon er th e farm er is aided in p lacing his farm o n a p o w e r basis, the soon er w ill he b e c o m e th e p r o s p e r o u s c i t i z e n h e should be. T h e banker should n o t hesitate to lend financial assistance in the purchase o f a g o o d tractor. W a llis —A M E R IC A ’S FORE M O S T T R A C T O R — has in creased y ield s and cut d o w n costs o n thousan ds o f farm s. In an o v e r w h e lm in g m a jo rity o f c a s e s , th e W a l l i s h a s brou gh t greater p rosp erity to the purchaser because o f its reliable p o w e r and w illin g ness to w o r k . W a llis p o w e r m eans m ore acres per h o u r— and that m eans m o re dollars per acre to the farm er. W e w ill g la d ly send liter a tu re to a n y b a n k e r w h o w ish e s to stu d y the W a llis and its value to the farm er. A card w ill b rin g im m ed iate response. J. I. C ase P lo w W o r k s C o m p a n y Dept. A831, Racine, Wisconsin i N O T IC E : W e want the public to know that the W A L L IS TRACTOR is made by the J . I. C A SE P L O W W OR KS C O M P A N Y o f Racine, Wisconsin, and is N O T the product o f any other company with “ J . I. C A S E ” as part o f its corporate name R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36 THE NORTHWESTERN BANKER January, 1921 Present O u r A dvertising Plan to Y our Directors at the A n n u a l JVLeeting /IT W rite at on ce for a Craddick «I Service proposal — outlining a 1921 advertising service for your bank to be submitted to your Board at the annual m eeting in January. /IT It will give you com plete deil tails o f a business-building pro gram for 1921 covering all depart ments of your business so that your Directors will know exactly what your advertising should be. /IT Get it now . There is no cost •I or obligation. It should be a part of your report on business exten tion plans. M ake it so! W rite or W ire fo r it foday ! CRÄDMCK. SERVICE R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r' advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER 37 IO W A B A N K N E W S F ra n k W arn er, A ssocia te E d itor (S ecretary Iow a B ankers A ssocia tion ) New Home of Bankers Trust. The doors of the Bankers Trust Company, Des Moines, were recently opened on one of the most elaborate ly equipped bank offices in the country. The Bankers Trust, of which B. F. Kauffman is president, recently purchased the Equitable building- at 6 th and Locust streets. The work of remodeling the ground floor for occupancy by the bank has been in progress for several months. The main banking floor is 75 by 40 feet, lined with Alabama cream marble in matched panels. Counters are Belgian black and gold marble. Black walnut and natural mahogany comprise the office furnishings. Bookkeeping and clerical work is done on the mezzanine floor. Auto matic elevators give access to this department. Every corner of the bank is reached by a dictaphone system. The vaults, committee rooms, em ploye and rest rooms are in the base ment. The vault is made of eighteen inch reinforced steel concrete with https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis electric safety devices and has a capacity of 5,000 safety deposit boxes. A unique lighting system to prevent the loss of any valuables by mistake is a feature of the private coupon rooms. An electric elevator on which steel trucks may be carried transfer cash and currency from the cash vault to the tellers’ cages. The basement also contains writing rooms and rest rooms. The bank provides a consultation room for the use of patrons who desire privacy in business transactions. The Bankers Trust Company plans to double its floor space at the expiration of leases in four years when the rooms west of the present quarters will be available for oc cupancy. , The Bankers Trust Company was organized in 1917, with Mr. Kauff man as president. Former quarters were at 5th and Walnut streets. Other officers are : L. B. Barthol omew, vice president; F'. W . Sargent, vice president; C. H. Stephenson, cashier; Max Holmes and E. E. Cooper, assistant cashiers. On the morning of the opening the new bank interior was beauti fully decorated with flowers and re membrances from a host of friends who thronged in to wish the Bankers Trust success and prosperity. Monticello Bankers Entertain. The bankers of Monticello, la., recently entertained the Jones County Bankers Association at a dinner and business meeting. The work of the Vigilance Committee was reported on. Officers are: presi dent, H. W. Flenniken, cashier of the Citizens Savings, O lin; vice president, L. W. Lovell, assistant cashier of the Lovell State Bank, Monticello; secretary, C. J. Church, cashier of the Martelle Bank, Martelle. Clinton Bankers Hold Meeting. The bankers of the Clinton County Bankers Association held a recent dinner in Clinton, Iowa, to perfect the details of the organization of their Vigilance Committee under the new Protective Plan. 38 THE NORTHWESTERN BANKER January, 1921 Waterloo Club Reorganized. First National Bank B U R L IN G T O N , IO W A C a p ita l, S u rp lu s and Profits . . . $450,000 R e s o u r c e s .......................................................$3,500,000 Equipped to handle business of banks and bankers in Southeastern Iowa. Correspondence solicited ' O FFICER S E. P. Eastman, Chairman Executive Committee Charlea E. Perkins, President and Chairman of the Board Wm. P. Foster, Vice President. P. H. Augsburger, Cashier M. C. Stelle, Vice President. L. C. Wallbridge. Vice President Milton R. Brooks. Assistant Cashier. C. D. Rich, Assistant Cashier. CEN TRAL STATE BANK DES MOINES C a p ita l an d Su rplu s $ 5 0 0 , 0 0 0 O ur facilities are excellent— W e handle out-of-tow n business promptly W e want to serve you SIMON CASADY, Chairman of the Board GR A N T McPHERRIN, Pré». JOHN B. McDOUGAL, Vice Prea. LELAND WINDSOR. Caahier FRANK C. ASH. Ass’ t Caahier JOHN W. HAWK Aaa't Caahier The Waterloo Bank Men’s Club has been re-organized and regular semi-monthly meetings are being held. The club was organized in 1913 but active meetings were dis continued in April, 1917, on account of the war. The association was formed for educational and social purposes and to further friendship among banking men of Waterloo. During the year 1916 a study of banking and finance was taken up under the supervision of the Ameri can Institute of Banking. It is now planned by the club to take up this work again. Membership in the club is re stricted to bank employees, from col lector up to cashier. Present offi cers are: President, V. L. Bartling, assistant cashier, Waterloo Savings Bank; vice president, R. E. Penny, assistant cashier, Commercial Na tional Bank; secretary, E. A. Schaefer, assistant cashier, Black Hawk National Bank; treasurer, D. P. Bardeen, assistant cashier Ameri can Trust and Savings; chairman of literary committee, S. C. Kim, assist ant cashier, Commercial National Bank; chairman social committee, R. E. Miller, assistant cashier, L. & J. National Bank. Dorchester Bank Doubles Capital. The Dorchester Savings Bank, Dorchester, Iowa, has resources and liabilities to the extent of $180,436.77 according to a recent statement. This firm was organized in 1912 and recently increased its capital from $ 10,000 to $20,000 by a 100 per cent dividend. Muscatine County Bankers Meet. The Muscatine County Bankers Association held a recent meeting for the purpose of electing new offi cers for the ensuing year and for the transaction of regular business. New officers are : President, Walter Light, West Liberty ; first vice president, W. D. Harris, W ilton; second vice president, C. T. Simmons, Musca tine; secretary, B. C. Benham, Mus catine; treasurer, Frank Nachbour, Atalissa. County Savings Bank, Algona. A recent statement from the County Savings Bank, Algona, la., shows its resources to be $2,787,572.35. Officers are: Presi dent, E. J. Murtagh ; vice president, C. B. Hutchins; cashier, C. B. Mur tagh. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN 39 BANKER Bankers Hear Hoover. In a recent address before 500 bankers and business men at the Hotel Fort Des Moines, Des Moines, Iowa, Herbert Hoover made a direct appeal for money to finance the pur chase of food for the starving chil dren of central and eastern Europe. Mr. Hoover explained the formation of the European Relief Council of which he is chairman. He presented to the visiting bankers the details of the plan to finance the American Relief Council and explained the meaning of the campaign for money which started December 19th. Mr. Hoover explained that for every dollar given by Americans, the European governments will con tribute two for the support of needy children. He declared that the stricken countries will co-operate in every way to furnish transportation and storage for the food that Amer ica sends. It was explained that the American Relief Council has under taken to raise $23,000,000 for food and $ 10 ,000,000 for medical service. Opening At Manchester. On the 30th day of November, 1920, the officers of the Farmers and Mer chants State Savings Bank, Man chester, Iowa, held a formal recep tion for their customers, friends and others at their new banking home. The building is a beautiful piece of work in blue-black, rug-faced brick trimmed with cream, full-glazed terra cotta. The building is 23 feet by 115 feet on the ground and con tains a first floor, mezzanine floor and a second floor. The interior work is wrought in marble and ma hogany and the decorations are all hand work in harmonious colors. There were about three thousand people who attended this opening. A cut of the building is shown elsewhere in this issue, in the ad of The Lytle Company. The building is a credit to the city of Manchester and is equal to any bank building in the west. Officers are : Burton Clark, presi dent; F. E. Dutton, cashier, and J. F. Graham and L. Matthews, Sr., vice presidents; W . W . Matthews and W . A. D u t t o n , assistant cashiers. Change of Officers. At the recent annual election of the First State Savings Bank, Waucoma, Iowa, Joe Reilly was made president; W . G. Shaffer, vice president, and J. J. McKay cashier. T h e Chase N a tion a l Bank of the City of New York— 57 Broadway C A P I T A L ...................................................................................$ 15,000,000 S U R P L U S A N D P R O F I T S ............................................... 24,189,000 D E P O S IT S (S e p te m b e r 8, 1 9 2 0 ) .................................. 328,680,000 O F F IC E R S A . B a r to n H e p b u rn , C h a irm a n o f th e A d v is o r y B o a r d A lb e r t H. W ig g in , C h a irm a n o f th e B o a r d o f D ir e c t o r s Vice Presidents Samuel H. Miller Edward R. Tinker fiarl 'L Schmidlapp ReeverSchleyDahl Alfred C. Andrews Robert I. Barr Eugene V. R. Thayer, President Assistant Cashiers Charles C. Slade Charles D. Smith S. Frederick Telleen Sewall S. Shaw Leon H. Johnston Otis Everett George E. Schoepps Andrew G. Campbell William H. Moorhead r h „_,p„ A shenardson t i™ Auditor Martin L. L. Henry . Cashier William P. Holly Assistant Vice Presidents Manager Foreign Department Edwin A. Lee Herman Krech William E. Purdy Herman n.recn George H. Saylor M. Hadden Howell DIRECTORS Henrv W Cannon Andrew Fletcher A Barton Hepburn Daniel C. Jackling Newcomb Carlton William B Thompson Albert H. Wiggin Charles M. Schwab Frederick H. Ecker Reeve Schley John J. Mitchell Samuel H. Miller Eugene V. R. Thayer Kenneth F Wood Guv E Tripp Edward R. Tinker Carl J. Schmidlapp H. Wendell Endicott James N. Hill Edward T. Nichols Gerhard M. Dahl William M. Wood WE RECEIVE ACCOUNTS OF BANKS, Bankers, Corporations, Firms or Individuals on favorable terms, and shall be pleased to meet or correspond with those who contemplate makmg changes or opening new accounts. „ , . „ _ , „ . . •, Through its Trust Department, the Bank offers facilities as Trustee under Corporate Mortgages and Indentures of Trust; Depositary under re-organization and other agreements; Custodian of securities and Fiscal Agent for Corporations and Individuals; Executor under Wills and Trustee under Testa mentary Trusts; Trustee under Life Trusts. FOREIGN EXCHANGE DEPARTMENT The Cedar Rapids National Bank W i t h C a p ita l, S u r p lu s an d P ro fits o f $ 9 5 0 , 0 0 0 . 0 0 an d R e so u r c e s $ 1 5 , 0 0 0 , 0 0 0 . 0 0 Invites New Business OFFICERS R a lp h V a n V e c h te n , P res. G len n M. A v e r ill, V . P re s . G eo. B. D o u g la s , V . P res. M a rtin N e w c o m e r , V . P res. K a r l H. R e h n b e r g , V . P res. G eo. F . M ille r, V . P res. C has. C. K u n in g , C a sh ier A n n a R . S m ou se, A . C ash . B e r th a M. W o lf , A. C ash. P e te r B a ile y , C h ie f C le r k G eo. W . S w ab , M g r. S a v in g s D ep t. R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H -W E S T E R N H A N K E R w h en w ritin g to our a d vertise! s. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40 THE NORTHWESTERN BANKER January, 1921 Plan to Merge Three Banks. A plan for the consolidation of the City National Bank, the Commer cial Savings, and the City Trust & Savings Bank of Mason City, la., was recently worked out at a meet ing of officers and stockholders of the three organizations. Under present plans, the new consolidated bank, to be known as the City and Commercial Savings Bank, will have a capital of $400,000. The present active officers will continue as active officers of the new organ ization and the board of directors will be practically the same. A. M. Schanke, president of Schanke & Co., investment bankers, will be president, L. O. Stone, Walter J. Walker, and James Rarden, vice presidents and Ralph P. Palmer, cashier. C o m m e r c ia l Na t i o n a l Ba n k W A T E R L O O , IO W A C A P IT A L and SURPLUS One-Half Million Dollars O FFIC ER S E. W . MILLER, President. F. C. PLATT, Vice Pres. H. W . WENTE, Cashier. S. C. KIMM, Asst. Cashier. R. L. PENNE, Asst. Cashier The high standard this bank has set for itself in the conduct of its business is a protection to its correspondents in every emergency and under all circumstances. Six Million Farms and a Market There are 6,449,998 farms in the United States. New York is the largest single market for the product of those farms. The Atlantic National Bank serves that market directly and is constantly in touch with it. This means accurate credit information, prompt handling of items and efficient service in other details intrusted to us. National Bank 257 Broadway-Opposti«CityHall NEW YORK CITY Lyon County Bankers Meet. Bankers of Lyon county, Iowa, met recently for their annual con vention and banquet. Officers elected for the following year are : President, J. P. Buscher of the First National Bank, Rock Rapids; vice president, M. A. Cox of the Lyon County National Bank ; and secre tary-treasurer, C. M. Peterson, Larchwood. A report on the banker-farmer conference at Fort Dodge was given by the retiring president, G. M. Anderson, of Inwood. The mat ter of carrying sales paper was thoroughly discussed. It was agreed that the banks must carry such paper, although it is not a highly desirable class of paper to handle just at this time. Grundy Center Banks. Resources and liabilities of the Grundy County National Bank and the Grundy County Savings Bank, Grundy Center, Iowa, combined statement, are shown to be $990,975.95. Officers are: W. D. Wilson, president, G. C. Allison, vice president and R. J. Kuehl, cashier. Vigilance Committee Reports. Protection against bank robberies was the main topic of discussion at a recent meeting of the Marshall County Bankers’ Association at Marshalltown, Iowa. The meeting was called to hear the report of a vigilance committee appointed in September. Grant McPherrin, presi dent of the Central State Bank, Des Moines, and Henry Meyer, city cashier of the National City Bank, Chicago, were the principal spëakers at the convention. R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER The Spirit of Christmas It is unfortunate that the Christmas Spirit does not pervade the realms o f business m ore often than once a year to teach us the true meaning o f co-operation in service, for, if it did, there w ould be little need to preach the gospel o f reciprocation to business men. Genuine service in any line o f business pays large dividends. A ll the care and worry and the years it has taken to build up D R O V E R S S E R V IC E to its present point o f efficiency, has been well worth the effort. W h a t we have done fo r nearly a thousand hanks in the great M id d le West, we can do fo r you. Try D R O V E R S S E R V I C E is the best N ew Year’s resolution you can make, for it will pay dividends all the year round. DROVERS N ATIO N AL BANK U N IO N S T O C K Y A R D S « C H IC A G O , IL L IN O IS T o dll g o o d fellow s in the banking fra tern ity, a n d especially to you who have helped us in making “ D R O V E R S S E R V IC E ,” we extend a hearty season s greeting R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w r itin g to ou r a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 THE 42 "S A M E NORTHWESTERN BANKER D A Y S E R V I C E ” Y O U W A N T IT — W E G IV E IT DES MOINES RUBBER STAMP WORKS . DES MOINES M anufacturers of RUBBER STAMPS AND SEALS Continental National Bank O F S IO U X C I T Y , I O W A The Bank Where Your Account Receives Personal Attention We offer a bank large enough to inspire the confi dence of its customers, but not too large to give every consideration to the interests of every cor respondent T . F . H ARR IN G TO N President W. G . D U NKLE C ash ier A. J. M O R E V ice Presiden t F. E. G IL L V ice President R. NASH A ssistan t C ash ier Constructive Cooperation Having these elements of strength—sound management, large re sources, a substantial reserve, and a flawless record—this bank solicits your account with a pledge of prompt and efficient service. “ Constructive Cooperation” expresses the working spirit of this or ganization. If we did not sincerely believe that our services would be highly sat isfactory we could not m'ge you as strongly as we do to avail your self of our facilities. Commercial Savings Bank Des Moines, Iowa JO H N A. E L L I O T T CLYD E President F. F R A Z I E R Vice-President and Cashier CLAUDE E. N IC H O L S E. Vice-President Capital - Resources L. Assistant - - - - DAVIS Cashier $ 2 0 0 ,0 0 0 .0 0 - 4 ,0 0 0 ,0 0 0 .0 0 January, 1921 Woodbury County Bankers Meet. The Woodbury County Bankers’ Association has been organized with the following officers and executive committee: John L. Mitchell, presi dent; John C. Clary, vice president; L. R. Manley, secretary and treas urer; L. S. Gambs, of the Smithland Bank, Smithland, Iowa, and B. Schneckloth, of the Merchants State Bank, Correctionville, Iowa. The object of the association is the betterment of banking conditions in Woodbury county. Full organiza tion has been completed with the articles of the constitution adopted and signed by the Banks of W ood bury county, at which meeting a full representation was in attendance. The principal subject was the pro tection of banks against burglary. Committees have been appointed in each and every town to work in con junction with the officers to prevent such robberies. The association provides a standing reward of $ 1,000.00 to be paid for the capture or information leading to the arrest and conviction for robbery, burglarizing, or attempting to rob or burglarize banks in Woodbury County, Iowa. Harrison County Bankers Organize. Bankers of Harrison county, Iowa, recently perfected a county organ ization. It will be affiliated with the State Bankers’ Association. Steps to protect local banks against rob bery have already been taken by the new organization. Officers are : president, B. J. W ood ; vice presi dent, F. W. Stern; secretarytreasurer, L. J. Irwin. Osceola Cashier Resigns. James Mickey, formerly cashier of the Osceola, Iowa, bank has resigned to take up work with the Connecti cut Mutual Life Insurance company. His headquarters are at Topeka, Nebraska. Mr. Mickey retains his interest in the bank and is also a member of the board of directors. His position as cashier of the Os ceola firm was taken by E. H. Thelander, formerly assistant cashier. New Vault at Bonaparte. A new vault has been completed in the Farmers and Traders State Bank, of Bonaparte, Iowa. J. A. Johnson is president and J. James Christy, assistant cashier. Fostoria Banker In California. Herman Madison, formerly cashier of the Farmers Savings Bank, at Fostoria, Iowa, is now assistant auditor for a bank in Long Beach, California. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en xoriting to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER 43 Appoint Assistant Cashier. Verne Tracy, of Moline, 111., has been made assistant cashier of the First National Bank, Clarion, Iowa. Changes In Wellman Savings. H. G. Moore, after 30 years ser vice with the Wellman Savings Bank, Wellman, Iowa, has resigned and moved to Kansas City. Hugh Graef, of Des Moines, has been elec ted cashier to fill the vacancy and Hubert E. Doud, of Winterset, made paying teller. George Trieschmann, who has been with the bank for several years, is assistant cashier and E. C. Jones, of Wellman, is manager of New Business and Credit Depart ments. This Is Not Banking A Nebraska banker dropped in to use our telephone recently. From the conversation was grasped the fact that a carload of material had been held up in the Chicago “Yards” f o r w e e k s . This was delaying completion of his new bank building. Madrid Bank Reorganizes. S. L. Moore, president of the First National Bank, of Boone, Iowa, has been elected president of the Farm ers Savings, of Madrid, Iowa. This comes as a result of the recent organ ization of the Madrid bank. Mr. Moore succeeds C. E. Peterson, Mr. Peterson becoming vice president. Officers of the Madrid bank are : president, S. L. Moore ; vice presi dent, C. E. Peterson ; vice president and manager, F. H. Graves ; as sistant manager, D. J. Christensen ; cashier, G. C. Carlson; assistant cashier, Blanche Frise. His telephone inquiry brought no results. Then we suggested that he turn the whole matter over to us. In three hours we reported to Mr. B. that his car had been “pulled” and was on its way. It was unloaded at its destina tion on the second day and the building completed on time. This is mentioned merely to illustrate that we I N T E R P R E T “S E R V I C E ” I N A B R O A D S E N S E . When you need personal attention and extraordinary service, write, wire or call on our— THE WORD SERVICE EXTENSION DEPARTMENT Morris Plan Increases Capital. The Morris Plan, of Cedar Rapids, recently decided on an increase in capital from $50,000 to $ 100 ,000 . Officers of the Cedar Rapids com pany are : president, G. M. Averill; vice president, H. T. Hedges; vice president, Edward Killian ; secretary treasurer, and manager, Harry E. Pratt. * Varland Buys Lund Interests. O. S. Varland, of Northwood, Iowa, has purchased the A. S. Lund interest in the First National, of Belmond. Mr. Varland has as sumed the duties of cashier of that organization, succeeding A. S. Lund. Clinton County Bankers Organize. A vigilance committee to provide protection against bank robbers has been formed by the bankers of Clin ton county, Iowa. The vigilantes are members of the Clinton County Bankers Association and have the following officers : President, A. M. Price, First National, DeW itt; vice president, Henry Guenther, First Trust and Savings, Wheatland; Sec retary, H. G. Kramer, City National, Clinton; and treasurer, M. H. Dake, First National, Lost Nation. But— THE NORTHERN TRUST CO.-BANK N. W . CORNER LA SALLE AND MONROE STS. C ap ital and S u rp lu s CHICAGO $5,000,000.00 T H E S T A T E C E N T R A L S A V IN G S B A N K KEOKUK, IOWA Capital ........ ............................................................... .............. ............. $ 200,000.00 Surplus and Undivided Profits.......................................................... 304,966.93 Deposits ................................................................................................... 2,835,899.15 W I L L I A M L O G A N , P re sid e n t G E O R G E E . R I X , V ic e P re sid e n t I,. J. M O N T G O M E R Y , V ic e P re sid e n t C. J. B O D E , C a sh ie r H . T . G R A H A M , A s s is t a n t C a sh ier H . B O Y D E N B L O O D , A s s is t a n t C a sh ie r :: ACCOUNTS OF BANKS AND BANKERS INVITED IN C R E A SE Y O U R D E P O S IT S By the use of Uncle Sam’s mails and our expert Addressing, Duplicating Letter and Mailing Service. Prices and samples upon request. DES M O IN E S D U P L IC A T IN G C O . 114 W E S T E L E V E N T H ST. D E S M O IN ES, IOWA R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis :: THE 44 NORTHWESTERN BANKER G E O R G E A . TU R N E R , V ice President H A R R Y W . JE N N IN G S, A ssistan t C ashier A L B E R T F . B A L C H , President CH A R LE S C . T R IN E , C ash ier A STATE BANK and a MEMBER OF THE FEDERAL RESERVE SYSTEM O ver F o r ty Y e a r s o f C onservative B an k in g Marshalltown State Bank 7 2 -9 3 7 2 -9 3 MARSHALLTOWN, IOWA Webster County National Bank Fort Dodge, Iowa C A P IT A L W e se r v e t h e N o r t h w e s t e r n I o w a T e r r it o r y — 3 % o n B a n k B a la n c e s . C A P IT A L A N D SU R P LU S $60,000.00 b u s in e s s in v ite d S a t is fa c t o r y s e r v ic e OFFICERS AN D DIRECTORS: John B. Butler, President Dan G. Stiles, Vice-President O. M . Thatcher, Vice-Pres. M . F. Healy, Vice-Pres. J. L. Hanrahan, Cashier Henry M . Wasem Louis Charon Dr. J. F. Studebaker Charles A. Brown CEN TR AL TRUST COM PANY O F D E S M O IN E S CAPITAL SURPLUS Income Tax Course. The Income Tax and Business effi ciency course held at Iowa City, under the joint auspices of the State University of Iowa and the Iowa Bankers Association, December 21, 22 , and 23 was a splendid success, both from the point of attendance and benefits derived from the meet ing. An attendance of 225 bankers and business men of the state and a large group of instructive speakers were two features of the convention. Kennedy Appointed Chief Examiner J. L. Kennedy, of Sheldon, Iowa, formerly national bank examiner, has been appointed chief examiner of the Ninth Federal Reserve Dis trict. Union National and Trust, Ames. The Union National Bank and the Union Trust and Savings Bank of Ames, Iowa, under the same man agement, show resources and lia bilities aggregating $1,753,623.08. Officers are: S. A. Knapp, president; Geo. Jüdisch, vice president and A. J. Martin, cashier. $250,000.00 W e b ste r C o u n ty T ru st & Savings Bank Y o u r January, 1921 $500,000.00 $200,000.00 Will receive and execute trusts of every description, acting as Executor, Administrator, Guardian and Trustee. The security afforded by the ample capital of this Company, and the constant supervision of its affairs by competent directors render its employment for the purposes named peculiarly advan tageous. The Company buys and sells bonds, warrants, special assessment certificates, first mortgages and other investment paper. O F F IC E R S G R A N T M cP H E R R IN J. S. R A W S O N ........... ............... ____Pre sid e n t V ice Pre side nt L . M . G R I M E S .......... C H A R L E S L . Q I L C R E S T ......... R. E . J A C K S O N . . . E . E. C L A R K ............................. V ice President Secretary T A Y L O R G R IM E S . . . L . B. B A R T H O L O M E W ........... .................. Treasurer ........... T ru s t O fficer . . A ssistant Secretary Fa rm Lo a n M anager Creston Assistant Cashier Dies. Fred W. Winter, assistant cashier of the Creston State Savings Bank, Creston, Iowa, recently died after a lingering illness. He was connected with the Creston bank for eighteen years. Appointed Committee Chairman. Otto Beckjorden, cashier of the First National Bank, Forest City, Iowa, has been elected republican central committee chairman of his county. Cedar Rapids Banker Dies. Frank C. Dobrovsky, vice presi dent of the Peoples Savings, Cedar Rapids, recently died after a short illness. He had had an active busi ness career, becoming a director and later the vice president of the Peoples Savings in 1913. Ladora Bank Elects New Officers. On account of the resignation of W. H. Betz, cashier of the Farmers Savings, Ladora, Iowa, new officers have been selected by the board of directors of that institution. Miss Molly Betz succeeds her brother as cashier and F. N. Dougherty, of Guernsey, becomes assistant cashier. Mr. Betz has moved to Downey, where he will assume the position of pastor of the M. E. church of that city. R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER 45 OFFICERS H O M E R A . M IL L E R P re sid e n t C L Y D E E . B R E iY T O N V ic e P re sid e n t J. H . R L A I R V ie e P re sid e n t H . T. B L A C K B U R N V ie e P re sid e n t GEO. E . P E A R SA L L V ie e P re sid e n t J. R . CAPPS C a sh ie r R . L . C H A S E , ,IR . A s s is t a n t C a sh ie r DESV'MOINES JAM ES F . H A R T A s s is t a n t C a sh ie r J. B U R S O N ( A s s is t a n t C a sh ie r CH AS. H . N U TT A s s is t a n t C a sh ie r S. W . F O W L E R A s s is t a n t C a sh ie r J CAPITALS?,IJ , 2 0 0 0 . 0 0 0 .\ SERVICE TO BANKERS DIRECTORS GEO. N. A Y R E S H. T. B L A C K B U R N J. H. B L A I R C L Y D E E. B R E N T O N H O W A R D J. C L A R K G A R D N E R COW LES J. H. C O W N IE E. C. F IN K B IN E T j'N J O Y the many advantages of our large resources and complete organization. Country bank accounts are handled by a spe cial department, fully equipped to meet the re quirements of modern service. C H A S. L. G IL C R E S T See us when you come to Des Moines — you’re more than welcome. J. B. G R E E N W M . C. H A R B A C H F. H. L U T H E M. M A N D E L B A U M H O M E R A . M IL L E R GEO. E . P E A R S A L L M. SH LO SS D. W . SM OUSE E. R . S T O T T S O. P. T H O M P SO N G. M. V A N E V E R A Iowa’s L a rgest Bank" IOWA NATIONAL BANK D C S M O I N E S S A V IN G S B A N B N T I F IE TV A N D T R U S T CO . S E C O N D F L O O R . F L E M I N G B U I L D I N G -* R ea d ers loill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 46 NORTHWESTERN January, 1921 BANKER T H E C IT Y N ATIO N AL BANK OF CLINTON, IO W A $ 600,000.00 $5,800,000.00 Capital, Su rp lu s and ProHts D e p o s i t s .................................... OFFICER S A L F R E D A L F R E D C . O L I V E R A c c o u n t s S M I T H , P . o f P r e s id e n t P E T T Y , B a n k s , G E O R G E C a s h ie r J . C o r p o r a tio n s a n d G . S M I T H , M . C U R T I S , H . N I S S E N , I n d iv id u a ls V ic e C h a ir m a n P r e s id e n t A s s is ta n t r e c e iv e d o n m H A L L E C K W C a s h ie r H . o s t t e r m s . fa v o r a b le G . . S E A M A N , K R A M E R , V ic e P r e s id e n t A s s is ta n t C a s h ie r C o r r e s p o n d e n c e I n v ite d COMMERCIAL SAVINGS BANK Mason City, Iowa Capital and Surplus, $225,000. Deposits over $1,900,000. Special attention given to Country Bank business. The service we render will interest Banks in our territory. Accounts and collections receive prompt attention. OFFICERS: IRA W. STINSON. Assistant Cashier HARRY C. WEEKS, Auditor L. B. TYSON, Manager Savings Department A. M. SCHANKE. President L. O. STONE, Vice President WALTER J. WALKER. Osshier MASON CITY’S FIRST SAVINGS BANK First N a t i o n a l Ba n k C O U N C IL BLU FFS, I O W A Capital $ 2 0 0 ,0 0 0 .0 0 A ssets O v er Surplus $ 2 5 0 ,0 0 0 .0 0 - $ 5 ,0 0 0 ,0 0 0 .0 0 J. P . GREENSHIELDS, President G. F. SPOONER, Cashier E. A. W ICK H AM , Vice President ROY MAXFIELD, Asst. Cashier PERRY BADOLLET, Asst. Cashier J. S. WATSON, Asst. Cashier More than half a century of successful banking THE FIRST N A T IO N A L B A N K OF W A T E R L O O W A T E R L O O , C h a r te r e d F o r o u r o v e r fifty im m e d ia te y e a r s th is lo c a lity . b a n k S p e c ia l h a s s u c c e s s fu lly a tte n tio n g iv e n s e r v e d to th is a c c o u n ts I O W A 1 8 6 5 c o m m u n ity . o f W e o ffe r th e s a m e s e r v ic e to th o s e o u ts id e b a n k s TOTAL RESOURCES OVER $2,900,000 ________________________________— ------------------------------------------------OFFICERS----------------------------------------------------------------------------------------------------J. W. RATH, President A. IVI. P L A C E , W I L L A. L A N E , Cashier Vice President -------------- DIRECTORS---------F, J , F O W L E R Vice Free, of the Fowler Oo., Wholesale Grocers u ijy a r a u t "'ca p ita list ' Président of the Rath Packing Oo. A. Ml. P L A C E Vice President W. W . MARSH President Iowa Dairy Separator Co. President Associated Manufacturing Oo. T. W . P L A C E Capitalist J' Président Waterloo Building and Loan Assn. J. T . S U L L IV A N J. oaWT R U M B A U E R Vice President Farmers Loan and Trust Be. H. A. M A IN E President H. A. Maine A Co. W I L L A. L A N E Cashier R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER Accepts California Position. $16,804,843, or about 18 per cent E. A. French, founder of the Seover last year. curity State Bank, of Keokuk, Iowa, The trust company resources of has been elected cashier of the River the United States increased nearly side National Bank, of Riverside, 12 per cent and aggregate $12,451,California. 877,583, which is considerably in excess of the total banking strength Jefferson County Bankers Organize. of the country in 1901. Bankers of Jefferson county, Iowa, In reviewing the year’s record, recently met at Fairfield to organ John W. Platten, president of the ize a protective league. The meet United States Mortgage & Trust ing was presided over by A. Saund Company, says: ers, from the governor’s office, at “ The fiscal year covered by this, Des Moines. Officers elected were : the eighteenth annual edition of president, C. U. Enry ; secretary, W. ‘Trust Companies of the United H. Bangs; treasurer, C. W . Riggs. States,’ has again witnessed a marked progressive tendency with Fitz Will Speak at Stock Sale. in the ranks of these institutions. M. W. Fitz, president of the “ Not only has there been a hand Farmers Savings Bank, Manson, some growth both individually and Iowa, will give an address before collectively, but the scope of useful the “ Thoroughbred Belgian Horse, ness of the trust companies is be Holstein Cattle and Duroc Jersey ing constantly widened and pre H og Sale,” lasting for two days in sages an even more assured recog January, at Manson. The sale will nition than formerly of their value be one of the largest ever held in as an integral part of our financial that part of the state, and will be -system. conducted in the beautiful Calhoun “ The figures when viewed com County Fairgrounds Stock Pavilion. paratively, testify to the splendid The idea of having speeches made position now occupied by trust com at a stock sale is a new innovation panies and furnish eloquent proof and believed to be a very practical that their broad service is being in one. creasingly availed of by the multi tude of individuals and corpora Iowa Trust Companies. tions whose special needs they so Iowa trust company resources at admirably meet. the close of business June 30th, The total resources of the 2,241 were for the first time in excess of trust companies reporting reach this $100,000,000, according to “ Trust year the impressive total of $ 12 ,Companies of the United States,” 451,877,583.58, an increase of $1,just published by the United States 301,431,496.05 over the figures of Mortgage & Trust Company, of last year, and $6,123,423,555.00 New York. The total figures for greater than those of five years the state are $109,627,748, a gain of ago. Banks for Sale W e can offer at this time the controlling interest in several very attractive Iowa, Minnesota and Eastern South Dakota banks. They are variously located in towns ranging in size from 100 to 10,000 people, all in good farming communities. While good banks always command fair prices, premiums are now very reasonable indeed and we are able to provide deals that will net purchaser from 15% to 25% on his investment, with ample guaranty on paper. If you contemplate buying, let us know your requirements as to state and section you prefer, size of proposition you would consider and what terms, if any, you would like, and we can un doubtedly be of real service to you. 47 R e n fre w W . G a te s Public Accountant and Auditor Thorough Bank Examinations Conducted on Behalf of BOARDS OF DIRECTORS Experienced in SPECIAL INVESTIGATIONS All Comm ercial, M anufacturing and M u nicipal Auditing given thorough and practical a tten tion . 201-2 Flynn Bldg., DES MOINES, IOWA The Sioux National B ank w ould appreciate y ou r Sioux C ity bu sin ess Capital - $ 2 5 0 ,0 0 0 Surplus - 2 5 0 ,0 0 0 C itizens S a v in g s B an k OTTUMWA, IOWA Send Us Your Southeastern Iowa Business A c c o u n t s of B a n k s a nd Bankers Given Prompt and Careful Attention Bankers Service C om pany Minneapolis, Minn. R. I. Gerrish, Pres. Walter Newton, Vice Pres. J. W. Hines, Special Rep. L. A. ANDREW, President WALTER T. HALL, Vice Pres. E. M. ANDERSON, Asst. Cash. R ea d ers tvill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 48 NORTHWESTERN BANKER COUNCIL BLUFFS SAVINGS BANK Council Bluffs Established 1856 Capital Surplus - - Iowa Incorporated 18 ZO - $ 1 5 0 ,0 0 0 .0 0 $ 1 7 5 ,0 0 0 .0 0 A General Banking Business Transacted THEO. LASKOWSKI, Pres. GEORGE A. KEELINE, Vice Pres. W. M. PYPER, Cashier H. W. HAZELTON, Asst. Cash. H. C. HATTENHAUER, Asst. Cash. E. R. JACKSON, Trust Officer Black Hawk N ation a l B a n k WATERLOO, IOWA Capital - $200,000.00 A d e q u a te f a c ilit ie s a n d p e r fe c t e d s e r v ic e m a k e t h is an id e a l r e s e r v e b a n k f o r I o w a b a n k s. E v e r y c o u r t e s y a n d a c c o m m o d a tio n e x te n d e d c o n s is t e n t w it h c o n s e r v a t iv e b a n k • ing\ I n q u ir ie s s o lic it e d an d a p p r e ciated,. O F F IC E R S GEORGE B. M ILLE R .......................... President R. O. HUTCHINSON....................................VicePresident A. E. GLENNY................................................Vice President JAMES LOONAN ......................... Vice President CHARLES W. KNOOP................... .. Cashier E. A. SCHAEFER................. Assistant Cashier “ T H E B A N K OF S T A B IL IT Y A N D P R O G R E S S ” The officers of this bank are always pleased to meet any visiting Bankers who may be in Sioux City. Send us your collections. Write us when you need farm loans, or Foreign Exchange. In fact, we do banking business of every description. C. L. R O E ...................................P re s id e n t A. W . S M I T H .................V ic e P re s id e n t T. W . P H I L L I P S .......... V ic e P re s id e n t A L F R E D P I Z E Y ____V ic e P re s id e n t N. H. N E L S O N .............................. C a sh ier A . M. H A R T T . . . . .A s s is t a n t C a sh ier THE M I D - W E S T STATE BANK 408 Pearl Street, Sioux City, Iowa “Where Savings Grow” BANK ACCOUNTS INVITED January, 1921 Form New Bank At Carroll. A new bank at Carroll, Iowa, to be known as the Iowa Trust & Savings Bank, has been formed. Its capital is $50,000. Incorpor ators are: Geo. H. Bartels, E. A. Wissel, A. J. Graham and J. A. Shollenberger, of Carroll, and B. B. Vorse, of Des Moines. American Bond at Davenport. The American Bond and Mort gage company, of Chicago, has opened an office in Davenport, Iowa. I. E. Dierdorff and C. L. Riegel, of Davenport, have been ap pointed resident managers. Mr. Dierdorff was formerly vice presi dent of George M. Bechtel & Co., Bankers, Davenport, and Mr. Biegel was manager of the real estate de partment of Snyder,. Walsh and Haynes, of the same city. Independence Organizes New Bank. A new bank, to be known as the Farmers State Savings Bank, has been organized at Independence, Iowa. The new bank is capitalized at $50,000. Officers are : Charles C. Meyerthaler, president; John T. Handt and William Blank, vice presidents; and E. F. Sorg, cashier. Directors are; Charles C. Meyer thaler, Dr. B. B. Sells, William Blank, C. McLaughlin, E. V. Forrseter, Thomas Cone, H. C. Keith, J. T. Handt, and E. F. Sorg. Mr Sorg, the cashier, comes from Volga, Iowa, where he was cashier of the Farmers State Bank; Mr. Handt and Mr. Sorg will be active in the management of the bank which plans to open February 1. Change In Officials At Cherokee. W. A. Sanford, president of the First National • Bank, Cherokee, Iowa, and N. T. Burroughs, have sold their interests in the First Na tional bank to R. H. King, Robert Gracey, Jas. F. Weart and Lome F. Parker. At a recent meeting of the board of directors, Mr. King was elected president and Mr. Gracey and Mr. Parker, vice presidents. C. Sullivan and R. G. Rodman retain their positions as cashier and as sistant cashier. American Savings, Maquoketa. The American Savings Bank of Maquoketa, Iowa, has resources and liabilities to the amount of $1,497,109:44. Officers are; Presi dent, D. N. Loose ; vice presidents, H. B. Hubbell, George Cooper and O. McCaffrey; cashier, H. E. Mahony ; assistant cashier, I. M. Hubbell. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE January, 1921 W NORTHWESTERN BANKER e S e e T h in g s Y our Way H ere Iow a b a n k s w ill find in the officers o f the D es M o in es N ation al B a n k , frien d s as w ell as b a n k ers. Y o u r p ro b le m s are in a p ecu liar way ours since the b a n k s o f Iow a are w o rk in g togeth er to fu rth er the p rosp erity o f the State. W h en we ask you to call upon us W e wish to extend our acquaint f o r a s s is ta n c e a n d c o u n s e l we ance among Iowa banks and bank mean literally what we say. ers. who have had You W e b e lie v e th a t we h av e banking relations something o f value to offer them with us realize this and consult in a banking connection here which us f r e e ly , b r in g in g to us your they can get nowhere else. W e in point o f view in return for ours. vite you to call at our Bank when This has been profitable for both you are in Des Moines or to write o f us. to us for further inform ation. DES MOINES NATIONAL BANK R e s o u r c e s m o r e th a n $ 2 2 , 0 0 0 , 0 0 0 D es M o in e s, Iow a R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 49 50 THE NORTHWESTERN BANKER January, 1921 The United State Bank Des Moines, Iowa Capital ................................................................... $200,000.00 Surplus ................................................................. 50,000.00 Offers every facility for handling the business of country banks in an efficient and expeditious manner. Presents a strong Board of Directors who, by the very nature of their several locations, are familiar with the needs of country banks and bankers. D IR E C T O R S N A T H A N I E L M. H U B B A R D , JR . V ic e P r e s id e n t a n d G e n e ra l C o u n se l, R o y a l U n ion M u t u a l L ife I n s u r a n c e C o m p a n y ; P re s id e n t, U n ite d C a ttle L o a n a n d L iv e S to c k C o m p a n y . E R N E S T A . JA C K S O N V ic e P re s id e n t, U n ite d C a ttle L o a n & L iv e S to c k C o m p a n y ; P a r tn e r, J a c k s o n B r o th e r s , In v e s t m e n t B a n k e rs , D a lla s, S. D. F R A N K D. JA C K S O N P re s id e n t, U n ite d S ta te B a n k ; P re s id e n t, R o y a l U n ion M u tu a l L ife In s u r a n c e C o m p a n y : S e c r e t a r y -T r e a s u r e r , U n ite d C a ttle L o a n & L iv e S to c k C o m p a n y . V E R N E W . M IL L E R V ic e P re s id e n t, U n ite d S ta te B a n k . F R E D H. P E A S E S e c re ta r y , P e a s e H a y C o m m is s io n C o m p a n y . C A R L F . P E R C IV A L S e c r e t a r y -T r e a s u r e r , C. L. P e r c iv a l C o m p a n y . C A R L B. P R A Y V ic e P re s id e n t an d T re a s u r e r , R o y a l U n io n M u tu a l L ife In s u r a n c e C o m p a n y . LE O E. S T E V E N S V ic e P re s id e n t, U n ite d C a ttle L o a n & L iv e S to c k C o m p a n y ; V ic e P re s id e n t, D e s M o in e s T h e a tr e C om p a n y . G EO RG E A. W E L L S S e c re ta r y , W e s te r n G ra in D e a le r s ’ M u tu a l F ir e I n s u r a n ce C o m p a n y . A m e r ic a n C om m ercial and S a v in g s B a n k of Davenport, Iowa C a p ita l s t o c k .......................................................................$ 7 0 0 ,000.00 S u rp lu s ............................................................................................. 700,000.00 U n d ivid e d p r o i i t s ................................................................ 4 3 9 ,000.00 D e p o s its ................................................................................... 16,325,000.00 O F F I C E R S ED . K A U F M A N N , P re s id e n t R A Y N Y E M A S T E R , V ic e P re s id e n t H. P. O E T Z M A N N , C a sh ie r , F . C. K R O E G E R , A s s is t a n t C a sh ie r F. A. JOH N SON , A s s is t a n t C a sh ie r O u r a d e q u a te h a n d lin g y o u r e q u ip m e n t b u s in e s s in e v e r y a n d e x c e p tio n a l d e p a r tm e n t o f fa c ilitie s b a n k in g fo r a r e a t s e r v ic e . B anks a n d B a n k S to c k s TheLogical Center We incite the business of BANKS, BANKERS AND MERCHANTS Desiring prompt, Efficient and Satisfactory Service on Favorable Terms. C A P I T A L A N D E. V. FR A N K E , President R. A LUDEM AN, C ashier P R O F I T S , $ 3 3 0 ,0 0 0 .0 0 C. F. FR A N K E , V ice President S. C. DEYOE A sst. Cashier GBDjrOÏ^'üCÎ!^ c a z ie e o o e c W t.o G v a a Iowa bankers, we think, very largely rec ognize Des Moines as the center of ac tivities so far as Iowa is concerned and we have a very substantial evidence that the prospective buyers for Iowa banking interests recognize this fact, because of the number of such buyers who are now listed with The Bankers’ Exchange, each one naming his requirements in a general way. I he Bankers’ Exchange, Inc., therefore located as it is in Des Moines, the head and front of the state, is the logical in termediary through which to negotiate the sale of Iowa bank interests. B a n k s o m e w o r k e r s o f w illin g to a ll r a n k s m a k e fu r n is h e d , in v e s t m e n t s . TheBankers’Exchange Inc. O ffic e s , 2 1 8 -2 1 9 S e c u r itie s E .R G ray- Pres. & M&v. B u ild in g D es Moines,Iowa. / R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 T HE St. Louis Banks Merge Interests. The recent purchase of the Mort gage Trust Company, St. Louis, and the Mortgage Guarantee Com pany by First National Bank inter ests is another step in working out the plans which were conceived when the First National Bank was formed by the merger of the St. Louis Union Bank, the MechanicsAmerican National Bank and the Third National Bank. This will ultimately give to St. Louis a finan cial institution that will be large enough to meet the most extensive requirements of that city, and will make it unnecessary for any local interest to go East for a banking connection. The two acquired companies will continue for the present under the old names and in the same location. All officers and employes of the Mortgage Trust Company and the Mortgage Guarantee Company will be retained, and will be merged with the organization of the First National’s present bond department as the Investment Division of the First National Bank and the St. Louis Union Trust Company which is an affiliated institution. The Mortgage Guarantee Com pany was organized in January, 1909, with a capital stock of $500,000 and a surplus of $50,000. The trust company was organized in 1911 with a capital stock of $500,000 and a surplus of $100,000. The com bined assets approximate $1,800,000. Mr. Tom W. Bennett is president of the Mortgage Trust Company and the Mortgage Guarantee Com pany and will be the head of the Investment Division of the bank. It is understood the physical merger will be effective and in oper ation January 1st. Clarinda Bank is Closed. The doors of the Clarinda Trust and Savings Bank. Clarinda, Iowa, were recently closed by the officers N O R T H VV E S T E R N BANKER of the bank. The following notice was posted on the door: “ This bank is going out of busi ness on account of difficulty of col lections. Deposits are $203,000, all guaranteed, not only by the capital of $75,000 and assessment thereon of $75,000, but also above that, are guaranteed by the following men, personally: J. Renlee, G. C. Clary, R. J. N. Notwehr, B. J. Sunder man, John Steeve, C. W. Kelley, Frecl Roberts and Albert Glasgow.” 51 Leavitt &Johnson li 4* i n i Wall Lake Savings. Resources and liabilities of the Wall Lake Savings Bank, Wall Lake, Iowa, are $641,148.14. Chas. Goodenow is president and C. W. Shaw, cashier. State Bank of Bondurant, Iowa. The State Bank of Bondurant, la., with a capital of $25,000 Iras re sources and liabilities of $303,594.46. M. E. Gannon is president, W. G. Robinson, vice president and B. F. Rothtrock, cashier. Commercial National, Waterloo. A recent statement of the Com mercial National Bank, Waterloo, Iowa, shows resources and liabilities aggregating $4,054,003.51. Officers are : E. W. Miller, president ; F. C. Platt, vice president; H. W. Wente, cashier; S. C. Kimmand, R. L. Penne, assistant cashiers. Established 1856 W A T E R L O O , I O W A IR A R O D A M A R , P re sid en t First National, Newton. Resources and liabilities of the First National, Newton, Iowa, are $1,752,893.78. W. C. Bergman is president; H. B. Allfree, vice presi dent and O. F. Eckluncl, cashier. Northwestern State, Orange City. A statement from the Northwest ern State Bank, Orange City, Iowa, shows resources and liabilities of $1,146,736.74. Wells S. Short is president - and Gerrit J. Slobe is cashier. N ational Bank in of G. E . P I C K E T T , V ic e -P r e s id e n t J. O . T R U M B A U E R , V ic e -P r e s. F R E D H . W R A Y , C a sh ier Capital, Surplus and Profits $ 3 0 0 ,0 0 0 .0 0 Commerce N ew Y ork Capital, Surplus and Undivided Profits Over F ifty-five M illion Dollars R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 52 THE Merchants NORTHWESTERN By M. M. Heptonstall BURLINGTON, IOWA Capital, Surplus and Profits $204,114.51 Deposits....$l,804,478.51 J. L. E D W A R D S ___________ President A L E X M O I R __________ Vice President F. L. H O U K E __________ V ice President JAM ES M O IR __________ Vice President G. S. T R A C Y __________ Vice President C. L. F U L T O N _________ Vice President E. W . W IC H H A R T _____________Cashier C. A . D A N IE L S _____ Assistant Cashier A . A . W IL L E M _____ Assistant Cashier D IR E C T O R S James M oir G. S. Tracy W . C. Tubbs S e c u r ity S a v in g s FTER giving serious study to the condition that confronts the public at this time, and the various solutions that have 'been offered, I have come to the con clusion that this is not the time to discuss whether the speculator is fleecing the farmer—there is no room for discussion. He has fleeced the farmer for the last forty years and there is no argument. The question before the people of Iowa is, “ What are we going to do about the relief of the conditions?” There is not a bank in our county today that has not over-loaned. They can not safely loan further. One of two things must be done ; either the banker must call in some of his loans, regardless of the in justice to the farmer, or additional resources must be supplied to carry these loans. If the banks are compelled to force collections from the young farmer who bought his equipment at a high price, and who has high rent to pay, as well as excessive expense for hired help, the young farmer will be driven out of business. W e can not afford to lose him. W e need more of them, not less. After some study and experiment ing, I feel confident in stating that there are enough government bonds owned by people in our county, to relieve this situation, and the con version of these bonds into cash will furnish sufficient funds to carry the farmer until he can sell his crop for at least the cost of production. I have this solution and proposi tion to offer: W e will take in the bonds at present market prices, and A Bank Alex M oir J. L. W aite J. L. Edwards We Invite Your Banking Business January, 1921 Suggests M ethod of Increasing Capital for Farmer P r e s id e n t National BANKER B a n k , P e r r y , I o w a issue to the owner time certificates due in six, nine and twelve months. These bonds will be sold and every cent will be used to assist the farm er in carrying his crop. When these certificates come due we will agree to return the bonds of the same amount as received, with interest, and the farmer to whom the funds are loaned pay the increase in the cost of the bonds to be returned, if bonds are higher at that time, which we do not believe will be the case, but the farmer can well afford to pay any probable increase. Or, if the bondholder prefers, we will give him the farmer’s note in stead of our certificate, and not charge one cent for our services. The impression that the banker is trying to grind down the farmer is incorrect, and we believe there is not a banker in Iowa who is not willing to assist in this measure of relief. W e believe that by May, 1921, the congestion in our export markets will be relieved and prices of farm products will be restored to a prof itable basis. The closing of factor ies will drive sufficient labor back to the farms, where it rightfully be longs. Iowa National, Des Moines. The Iowa National Bank, Des Moines, reports resources and lia bilities aggregating $24,208,104.82. Officers of the Iowa National are: President, Homer A. Miller; vice presidents, Clyde E. Brenton, J. H. Blair, H. T. Blackburn and Geo. E. Pearsall; cashier, J. R. Capps. PEOPLES TR U ST & S A V IN G S B A N K E s t a b li s h e d 1893 CAPITAL, $300,000.00 CLINTON, IO W A SURPLUS, ALL EARNED, $300,000.00 DEPOSITS, $5,200,000.00 Offers the facilities and services of a live, up-to-date banking house, fully equipped and am ply capitalized to handle intelligently and efficiently every branch of legitimate banking. COMMERCIAL—SAVINGS—SAFE DEPOS1TS-TRUST A c c o u n t s fr o m b a n k s in it s a t t e n t io n W . W . COOK P r e sid e n t te r r ito r y , o f a n a n d o ffic e r c o lle c tio n s o f t h e r e c e iv e t h e s p e c ia l b a n k C. F . ALDEN V ic e P r e sid e n t C. S . H A R R IS a n d W . S . GARDNER, A s s is ta n t C a sh ie r s J . L. BOHNSON C a sh ie r R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE January, 1921 NORTHWESTERN BANKER 53 “ Identified with Chicago's P rogress Since 1857" THE M ERCH ANTS NATIONAL BANK CEDAR RAPIDS, IO W A Board of Directors CLARENCE A. B U R LE Y.................................... Attorney and Capitalist R. T. CRANE, J R .............................................. President Crane Company MARSHALL F IE L D .................................. Trustee Marshall Field Estate ERNEST A. H AM ILL............ Chairman Corn Exchange National Bank HALE HOLDEN. . . President Chicago, Burlington & Quincy Ry. Oo. MARVIN HUGHITT. . .Chairman Chicago & North-Western Ry. Co. EDMUND D- H U LBERT................................................................. President OHAUNCEY K E E P .................................... Trustee Marshall Field Estate CYRUS H. McOORMICK. . . . Chairman International Harvester Co. JOHN J. MITCHELL..................................................... Chairman of Board SEYMOUR M O RRIS.......................................Trustee L. Z. Leiter Estate JOHN S. RUNNELLS.................................. President Pullman Company EDW ARD L. RYERSON ...............Chairman Joseph T. Ryerson & Son JOHN G. SHEDD...........................President Marshall Field & Company ORSON SM ITH.................................... Chairman of Advisory Committee JAMES P. SOPE R ............................. President Soper Lumber Company ALBERT A. SPRAGUE......................Chairman Sprague Warner & Co. MEMBER FEDERAL RESERVE SYSTEM Resources $16,000,000.00 OFFICERS JOHN T. HAMILTON, Chairman J. M. DINW ID DIE, President EDWIN H. FURROW, Cashier JAMES E. HAM ILTON. V. P. H. N. BOYSON, Asst. Cashier P. C. FRICK. V. P. ROY C. FOLSOM, Asst. Cashier ROBERT PALMER. V. P. M ARK J. MYERS, Asst. Cashier ROBERT S. SINCLAIR, V . P. FRED A. GROELTZ. Asst. Cashier D E PAR TM E N TS COMMERCIAL—SAVINGS—TRUST—B O N D FARM LO A N -FO R EIG N EXCHANGE Capital and Surplus $ 1 5 ,0 0 0 ,0 0 0 A liv e a n d in s titu tio n fa c ilitie s o ffe r in g fo r th e s u p e r io r h a n d lin g e q u ip m e n t o f b a n k a c c o u n ts . T h is Bank and Iow a Bankers When you make your next visit to Des Moines, we want an opportunity to show you thru our new banking home. While it is largely a matter of pride with us to show Iowa bankers thru our new quar ters, we are certain that you will take pleasure in seeing them. We feel that we have a home which adequately measures up to the standard of service that we render our Iowa bank correspondents. Ba n k e r s Trust Ga Ba n k Capita] $1,000,000.00 Cor. 6th.andLocust Sts.DesMoines Member fedem] Reserve Bank THE SECO N D N A T IO N A L B A N K AND DUBUQUE S A V IN G S B A N K D U B U Q U E, IO W A O R G A N IZ E D 1 8 7 6 OFFICERS AND DIRECTORS J. K . DEM ING P resident JAM ES M. BURCH V. P. F arley & Loetscher M fg. Co. HERM ANN ESCHEN Cashier J. T . CA R R S ecy-T reas. Carr, Ryder & A d am s Co. CH AS. H. BR A D LE Y Bradley Bros. GEO . W. K IE SE L Hurd, L en eh an & Kiesel F R A N K BE LL C a p ita list J. J. RO SH EK R oshek Bros. Co. Reserve Agents for National Banks United States Depositary Combined Resources - - $3,000,000.00 R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 54 NORTHWESTERN BANKER C. H. EIGHMEY, P resident TH E D U B U Q U E National Bank January, 1921 * W. M . HETHERINGTON, Vice P r e s. C. J. COLLIER, Vice P r e s. H. A. KOESTER, Cashier First National Bank D U BU Q U E, IO W A DUBUQUE, IOWA Deposits Over Capital, Surplus and Profits, Resources - $ 2 ,0 0 0 , 0 0 0 Accounts of Banks Solicited K e e p u s in m in d — ESTABLISHED 1872 $ 435,000.00 4,500,000.00 Write lls for Terms R. A. CRAWFORD President W ID E choice o f investment C. T. COLE. JR. Vice-President D. S. CHAMBERLAIN V ice-President W. E. BARRETT Cashier JOHN H. GINSBERG Asst. Cashier C. M. CORNWELL Asst. Cashier securities in which this bank has invested its own funds is al ways available to our customers. New and Modern Home of the BOND DEPARTM ENT VALLEY NATIONAL BANK and VALLEY SAVINGS BANK DES MOINES, IOWA DES MOINES, IOWA C o m b in e d C a p ita l a n d S u r p lu s , $875,000.00 A n x i o u s t o W s e r v e , e s e e k E q u ip p e d th e t o s e r v e w e ll— E . B . W IL S O N , President o p p o r t u n it y . Capital and Surplus $700,000 W . P . M A N L E Y , P r e sid e n t A . B . DARLING, V ic e P r e sid e n t V . C. BONESTEEL, V ic e P r e sid e n t L. R . M A N LE Y, C a sh ie r R . E. B R O W N , A s s ’ t C a sh ie r F o u n d ed 1884 R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE January, 1921 H. V. Greene Changes Name. The name of the H. V. Greene Company, Boston, distributers of securities, has been changed to Na tional Service, Inc. The new com pany is now operating in 11 states and the District of Columbia. John Jacob Arnold is head of the new organization. Mr. Arnold was associated with the First National Bank of Chicago for 28 years. H. V. Greene, president of the old com pany, is chairman of the board of directors. William Burns, Charles E. Rodway and Joseph Donovan are other officers of the National Service, Inc. The company has for its aim the distribution of securities among the small investors. It is at present selling shares in the Bankers Union for Foreign Commerce, Inc., First People’s Trust of Boston, Loew’s Theater Company and the State Theater Company of Boston. NORTHWESTERN Mr. Burger was on the art staff of of architecture, with the class of 1912 and while in school, was art editor of the Cornell W idow and the Boston Post, drawing sport and political cartoons and doing illus trating for the Sunday edition. He is a graduate of Cornell University First National, Lyons, Iowa. Resources and liabilities of the First National Bank of Lyons, la., are $1,373,634.41. Resources and lia bilities of the Lyons Savings Bank are $1,851,812.79. Citizens National, Spencer. The Citizens National Bank, Spen cer, Iowa, has resources and lia bilities totalling $1,184,746.35. Its capital is $100,000. Officers of the Citizens National are: President, Franklin F loete; vice president, J. H. McCord and cashier, P. R. Graham. Joins Edwin Bird Wilson, Inc. Carl V. Burger, who organized and directed the A. E. F'. School of Painting, in Beaune, France, has joined the Edwin Bird Wilson, Inc. Advertising Agency, which h a s offices in New York and Chicago. Mr. Burger will assist Robert Ball, art director. For three years before the war, the Cornellian. Later he taught drawing and painting in the Uni versity of Illinois. Since the war Mr. Burger has been doing commercial art work in various capacities. The illustrations in “ The History of the Inter-Allied Games,” a book published by the Army in Paris and given wide circulation, were made under Mr. Burger’s direction. Edwin Bird Wilson, Inc., spec ialize in financial advertising. T h e H o m e of th e Iow a S ta te College A lso T h in k of th e A m e s N ation al Bank . S ta ffo r d , P r e s . I v a n O . H a s b r o u c k , IOWA NATIONAL BANK DAVENPORT, IOWA CHAS. SHULER, President FRANK B. YETTER, Vice Pres. W M . H. GEHRMANN, Vice Pres. LOUIS G. BEIN, Cashier HERMAN STAAK, Asst. Cashier Waterloo Savings Bank AMES W “TH E B A N K E R S’ BANK” Here is a bank for banks and bankers— a strong fi nancial organization backed by a half million dollars in capital, surplus and undi vided profits. Our service to correspondents is prom pt and painstaking. CARL V. BURGER W h e n Y o u T h in k o f H . 55 BANKER C a s h ie r W A T E R L O O , IO W A . C A P IT A L ................................... $ 100,000.00 SURPLUS AND P R O F IT S ....... 100,000.00 D E P O S IT S ................................ 1,950,000.00 T h is S tr o n g F a c ility B a n k fo r H a n d lin g O ffe r s E v e r y S a tis fa c to r ily Y o u r B u s in e s s . OFFICERS W . C. L ogan , P resident E. I,. Johnson, V ice P res. J. J. M iller. Cashier Carleton Sias. V ice Pres. V . L. Bartllngr, A sst. Cash. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 56 THE NORTHWESTERN BANKE R January, 1921 W E S O L IC IT Security National Bank Black Hills Business Sioux Falls, S. D. We claim that we have no dissatisfied client to whom we sell Real Estate Loans A Bank fo r Bankers in O ur L oan s Are A ll Located Our Territory in th e F a m o u s B L A C K H IL L S C O U N T R Y W r it e U s fo r Resources Over $7,000,000,00 P a r tic u la r s Security Savings Bank H A R R Y W E N T Z Y , P r e s id e n t R apid C ity, S o u th D ak ota B A N K O F F IC E R S : W. Z. Sharp, President D. O. Lowe. Assistant Cashier John Barton, Vice President George B. McMahon, Asst. Cashier D. A. McCullough, Vice President J. V. Lowe, Assistant Cashier Jas. B. Lambertson, Cashier Oliver A. Bray, Assistant Cashier F. W. Koneman, Manager Farm Loan Dept. F I X T U R E S Now is the time to get things lined up for that bank building you expect to erect or the remodeling you intend to do on your present building or fixtures. W e make a specialty of bank equipment and would be pleased to have one of our special representatives call and help plan your room. Even though you do not intend to proceed with your work at the present time you can get things shaped up and be ready to start operations whenever you so desire. Making a specialty of this class of work, we are in a position to give real service to our customers, and by having one of our men call you would not be obligating yourself to us in any way whatsoever. L et U s H ea r F rom Y ou G R O T H -H O ST E T L E R CO. C O M P L E T E B A N K A N D O F F IC E E Q U IP M E N T 3 0 9 South P h illip s A ve. Sioux P alls, S . D. R ea d ers loill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NOR T H W E STE R N BANKER 57 SO. D A K O T A B A N K N E W S Ii. J. W elch , A ssocia te E d itor (S ecreta ry South D ak ota B an kers A ssocia tion ) The N orthw estern B anker is the official p u b lica tion s i th e South D a k ota B ankers A ssociation . Country Bankers Are N ot Responsible for Present Money Situation B y I. T . M c G in it y , C a sh ier C itiz e n s S ta t e B a n k , L e b a n o n , S . D . L E A D I N G Minneapolis banker states that the money situation in the Northwest is in the hands of the country banker. “ Many farmers are holding their wheat,” he says. “ They borrowed on it from their country bank. It is up to the country banker to talk to the farmer about the situation and get his notes paid up.” This is a mis-statement of the situation. It must be remembered that dur ing the past few years many farmers have become prosperous. That the farmers of the Northwest are not all borrowers, that many of them are depositors. These are the success ful farmers, the men who own the most acres and consequently the largest holdings of wheat. They are in position to hold the wheat without the permission of anyone and they regard it as entirely their own busi ness. There is another class of farmers who are borrowers and who hold wheat, but they are men whose credit is such that they do not ask the banker when they shall sell. If banks will not carry them, they can obtain the money from private lend ers who will withdraw deposits and thus make the credit situation worse. These also are successful farmers who have large holdings of grain. The renter and the farmer whose A credit is limited have already been forced to sell, not by the banker but by others. The farm implement manufacturers and wholesalers have staged a most intensive collecting campaign this fall. Collectors have swarmed over the Northwest. When the local accommodation stopped at a certain station one morning four teen collectors got off. A leading farm implement concern stationed their collectors in a town for a week or two at a time. Besides their regu lar collectors, these firms have turned their salesmen into collectors and have employed still others. These collectors rode the country with the local dealers and any farmer who could get by all these fellows was surely entitled to hold his grain. The country banker did not attempt to forestall this movement and make his own collections. The merchants and the local dealers in farm machinery, lumber, coal and supplies of all kinds were his cus tomers and their bills must be paid, so he let the good work go on. Thus large sums were sent cityward and the farmers whom the banker could “ talk to” have already been talked to, and the others could tell the banker to look after his own affairs. When these farmers get ready to sell their grain the country bankers’ reserve will rise and he will be able to retire some of his obligations, but that he is responsible for the situation or can in any way control it, is a myth. If acting on this theory, city banks should skimp the country banker’s credit ration to bring about liquidation it would be pressure mis applied. In these days of readjustment, the problems of the country banker are manifold. He is called upon to re duce his loans and retire his obliga tions to the city, but, with present prices of farm products, how to find a profit for the farmer over the cost of production with which to pay off debts, is beyond him. How, on the other hand, he can even renew the loans on a safe margain with the value of the securities cut in two, is still another problem for which he has not yet found a solution. The country banker must ask the indulgence of those to whom he is obligated until the readjustment of prices has reached the stage where there will be a margin between what the farmer sells over what he buys that can be applied to his indebted ness. — South Dakota Banker Dies. Ole A. Hanson, a director of the Garretson Bank, Garretson, South Dakota, has succumbed to a stroke of paralysis. Mr. Hanson was one of the pioneer residents of Garret son. SIOUX FALLS— — a financial center that South Dakota can well feel proud of. Your business routed to the SIOUX FALLS N A T IO N A L BAN K assures you of appreciative treatment and you will know that your reserve is being utilized to develop your own state. S IO U X FALLS’ OLDEST BANK R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58 THE Will Have Fine Building. An item was recently published, wherein we stated that the First Na tional Bank, Lake Norden, South Dakota, is erecting a new building to cost $100,000. Although this is a beautiful construction that will add greatly to its prosperous city, it will cost in the neighborhood of $35,000 instead of $100,000. The one-story brick structure, has a fine stone front and the inside finish is birchmahogany and marble. It is modernly equipped in every respect. The director’s room is built in above the vault, with a large marble builtin clock. It has a ladies rest room, a large farmers room, both to the disposal of ladies, farmers and busi ness men at any time, also a full basement. Capital stock, surplus and un divided profits are $60,000.00, re sources and liabilities are over $550,000.00, with the following offi cers in charge: O. T. Bogstie, president; A. E. Kangas, vice presi dent ; R. H. Raschke, cashier; E. C. Anderson, assistant cashier and Peter E. Koistinen, assistant cashier. Joins Fischer Company. J. D. Fleckenstein, formerly cash ier of the Sioux Falls National, has accepted the position of vice presi dent and sales manager of the Fischer Printing Co., Sioux Falls. NORTHWESTERN BANKER January, 1921 New Bank At Sherman. A new bank, to be known as the Security State Bank, will be opened at Sherman, South Dakota, January 1st. It will be capitalized at $15,000. W. L. Baker, of the Mi nnehaha National, of Sioux Falls, Ole Hansen, Thomas Wangsness, presi dent of the First National, of Garretson, John A. Egge and E. J. Berdahl are the incorporators. Bankers Launch Marketing Drive. South Dakota Bankers of Group 1, comprising the counties of Clay, Yankton, Douglas, Bon Homme, Union and Charles Mix, decided at a recent meeting at Yankton to launch a concerted effort to hasten action of co-operative marketing as a means of stabilizing financial con ditions. First National, Colman. The First National Bank of Col man, South Dakota, has resources and liabilities a g g r e g a t i n g $596,353,999, according to a recent statement. Officers of the First Na tional are : C. H. Rawson, presi dent ; Chas. Simonson, vice presi dent ; L. B. Keith, cashier; G. Jos. Lieser, assistant cashier. Brings In Oil Near Edgemont. An oil well with a 300 barrel pro duction was recently brought in near Edgemont, South Dakota. The well is only two miles from Edge mont and is one hundred feet higher than the trackage of the city, hence it has been found possible to depend upon a gravity flow. It is owned by Will French, Andy French and James Rossiter of Scottsbluff, Neb. Guaranty Law Proves Successful. John Hirning, state bank superin tendent of South Dakota, points out that the bank guaranty law of that state has been a success both from the standpoint 'of the bank and the depositor. Only three banks have failed during the past five years and in each case full payment was made to depositors. The cost of operation of the law has been estimated at $17.14 a year for a bank that has $ 100,000 in deposits. Urge Minimum Prices at Terminals. A telegram has been sent by a committee of bankers representing the South Dakota Banker’s Associa tion to United States senators and congressmen urging legislation fix ing minimum prices at certain ter minals for surplus grain on hand at the end of the crop year. The com mittee believes that such action is necessary in addition to the pro posed extension of credit to farm ers. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER Muckier Is Cashier. Robert Muckier w i l l become cashier of the Sioux Falls National Bank, Sioux Falls, South Dakota, on January 1st. Mr. Muckier was born in Toledo, Iowa, thirty-two years ago, where he entered the banking business in 1904, serving as assistant cashier for six years in the First National Bank. It’s Not Fair to “Let George Do It” If the livestock industry has been profitable for you in the past, and if you expect to reap profits from live stock in the future, you owe it to the industry to lend assistance now in bring ing conditions back to normal in the soonest possible time. ROBERT M UCKLER In 1910 he purchased controlling in terest in the State Bank of Rockham, Rockham, South Dakota, and served as its president until 1913 when he was appointed a state bank examiner spending five years with the State Department of South Da kota. He left the department during the war and entered military service, where he attained the rank of Lieutenant in the United States Cavalry. Since January 1, 1919, he has served as special representative of the First National Bank, of Minne apolis, looking after their interests in South Dakota, Minnesota and Wisconsin. Have an affiliation with a good live stock bank. It will help you to watch developments and to more consistently encourage and assist stock growers in your vicinity. Stock Yards National Bank “ 1897— South St. Paul’s Pioneer Bank and Still in the Lead— 1920” South St. Paul, Minn. Filing Devices---Vault Fixtures W o o d or Steel When you want filing cabinets that work with an ease of perfection insist upon the Y & E line. The wooden cabinets are made to work perfectly in all climates. The steel are of double fire wall construction with patent self locking drawers. Write for catalogs WILL A . BEACH PRINTING COMPANY W e O ccupy Our Own Building C orner P hillips Ave. and Seventh St. S IO U X F A L L S Phillips A v e . at 7th St. SOUTH D A K O T A R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 59 60 THE NORTHWESTERN BANKER January, 1921 For 25 Years we have kept our finger on the pulse of livestock. Doesn’t it rience, our might be clients in this time? stand to reason that our expe observation and our viewpoint of value to your bank and your making the wisest decisions at We are glad to co-operate with you in making ready for the better things ahead for the industry. Say the word. An out of town bank requiring banking con nection in New York City will find our organ ization, built up through an existence of more than one hundred years, prepared to render the fullest measure of service. The Live Stock National Bank Established 1810 AND Sioux City Cattle Loan Co. The Mechanics & Metals National B ank “ Located at the Stock Yards” of the City of New York \ SIOUX CITY, IOW A Capital, Surplus and Profits $25,000,000 B A N K FIXTURES S A S H D O O R S M O U L D I N G S F I N E I N T E R I O R F I N I S H I N G S G R IL L S M A N T E L S A N D — B U I L T F O R S T A I R A W O R K D I S C R I M I N A T I N G E x c e p tio n a l T R A D E . V a lu e s . W r it e JORD AN BROTHERS S IO U X F A L L S , S O U T H D A K O T A O the development of the commercial enterprise o f the nation this bank has contributed the best o f its banking facili ties and experience T Established 1856 THE NATIONAL PARK BANK OF N E W TfORJC, DAKOTA TRUST & SAVINGS BANK Sioux Falls, South Dakota Capital and Surplus $110,500.00 Banks and Bankers Accorded Liberal Treatment 214 Broadway SAFE D E P O SIT V A U L T S N. O. MONSERUD, President O. A. HAYWARD, Vice President TOM COSTELLO, Vice President V. H. MASTERS, Cashier CARL. G. NELSON, Asst. Cash. DONALD C. COTTON, Asst. Cash R ea d ers will c o n fe r a fa v o r by m en tion in g TH E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE Hold Group Meetings. Bankers from six counties repre senting group 1 of the South Dakota Bankers’ Association met recently in Yankton to discuss banking prob lems, particularly with reference to banker-farmer co-operation. Speak ers were: L. J. Welch, secretary of the South Dakota Bankers’ Associa tion, and M. Plin Beebe, of Ipswich, a member of the depositors’ guaranty fund commission. Group five, con sisting of the bankers of northeastern South Dakota met at Webster, at the call of A. Kopperud, its presi dent, to discuss matters of general interest. C. H. Lein, of Summitt, and M. Plin Beebe, of Ipswich, rep resented the guaranty fund commis sion at the meeting. De Smet Cashier Resigns. B. J. Shannon has resigned as cashier of the Farmers State Bank of De Smet, South Dakota. Mr. Shannon was one of the organizers of the Farmers State and has held the position of cashier since its organization. His successor has not yet been appointed by the board of directors. Security National, Sioux Falls. Resources and liabilities of the Security National of Sioux Falls, South Dakota, are $5,987,655.57. Officers of the Security National are : president, W . Z. Sharp ; vice presi dents, John Barton and D. A. Mc Cullough; cashier, Jas. B. Lambertson ; assistant cashiers, Delmar C. Lowe, George B. McMahon, J. V. Lowe, Oliver A. Bray and F. W. Koneman. YOUNG MAN’S SUCCESS IS ASURRED THROUGH “SELF BETTERMENT.” (Continued from page 24.) his interest and attention to master ing the difficulties before him if he would plow his way through to suc cess. “ Suppose,” said Lord Clarendon to Cyrus W. Field, talking about the laying of the proposed Atlantic Cable “ you don’t succeed,— your cable is lost at sea— then what will you do?” Field answered : “ Charge it to profit and loss and go to work to lay an other.” Along with “ Power of W ill” there must be extended “ Vision.” The Bible tells us, “ AVhere there is no Vision, the people perish.” W e must learn to see more clearly and think in large terms. Most men live along from day to day without giving any particular thought to where they are going to land in life’s affairs, five or NORTHWESTERN BANKER ten years later. Eighty-five per cent of all men die and leave no estates whatever. Seventy-five per cent of the remaining dependents are left without ony of the mere comforts of life. I would admonish the young man to lose no time sowing wild oats. Get started on your chosen pursuit as early in life as possible. Keep good company— choose the company of men who know more than you do, strive to gain their re spect. Be humble; be thoughtful. Secure some good books, and read them with devotion. Dr. Eliot of Harvard has said that fifteen minutes’ reading each day will give a thoughtful reader of good books an education and will free a man from the limitations of his age, his coun try, his personal experience; they give him access to all ages, to all countries, to all experience. They make him a citizen of the w orld; they offer him the companionship of the most interesting influential men and women who have lived; they make it possible for him to travel without leaving home, and to have vacations without taking time from his shop, his store, or his office. They offer him friends, travel, and the knowledge of life. Success requires in addition to the foregoing, proper attention to the physical body. This attended to I would recommend Haddock’s “ Ten Rubies of Success 1st. “Cultivate the magnetic will.” 2d. “ Be alert for opportunities.” 3d. “ Study the lessons of experience.” 4th. “A ct with deliberate promptness.” 5th. “Throw best self into all effort.” 6th. “ Preserve undisturbed poise.” 7th. “ Give personal judgment confi dence.” 8th. “ Make your word equal to the best bond.” 9th. “ Keep the risk element down to bed rock.” 10th. “Sacrifice for the long run goal.” Such consecration of one’s facul ties to the helpfulness of humanity and his prejudices will depart grad ually with his ignorance. He will no longer dive for himself alone, or for the narrow circle of country, time, profession, space, and ideas amongst which nature has placed him for a few short days. He will live, of the 61 life of ages, a small portion doubt less, but a portion which compre hends and contains the whole. The personal efifort must be great. The premium is greater. C H A S . H . R . L . N I C H O L S O N , W O O D , The Inter-State Surety Co. Redfield, South Dakota A surety company owned and operated by South D a kota people for the conven ience of its citizens. We write Fidelity and Sur ety Bonds, Plate Glass and Bank Burglary Insurance and with our location and familiarity with local con ditions are in position to render prompt and efficient service. Paid Up C ap ital $133,700 S u rp lu s and Reserve $126,978 L a m b e rt Printing C o m p a n y Stationers - - Printers Rubber Stamp Makers Watertown - - ■ South Dakota R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis P r e s id e n t S e c r e ta r y THE 62 NORTHWESTERN January, 1921 BANKER N EB R ASK A B A N K N E W S Bushnell Bank Reorganizes. A reorganization of the Bushnell State Bank, of Bushnell Nebraska, recently took place. G. W. Broaclhurst, newly elected cashier, was for many years cashier of Saratoga State Bank, Saratoga, Wyoming, and the past season has been con nected with First National Bank, Cheyenne, Wyoming. Other officers are: C. E. Beyerle, president; G. E. Abbott, vice president; F. O. Baker, vice president; G. W. Broadhurst, cashier; V. P. Wright, assistant cashier. Directors are: C. E. Bey erle, G. E. Abbott, G. W. Broad hurst, F. O. Baker and V. P. Wright. F. N. High Moves to California. F. N. High, cashier and a direc tor in the State Bank of Omaha has removed to California where Mr. High plans the purchase of a bank. Mr. High’s position has been taken by J. H. Donnellly. Other officers of the bank are : Albert L. Schantz, president; Dan W . Gaines, vice president; J. H. Donnelly, cashier; W. C. Davis, A. A. Nelson, and C. L. Murphy, assistant cashiers. Thorne Elected Director. W. E. Thorne has been elected a new director in the Service State Bank of Bladen, Nebraska. Nelson Bartlett has been elected vice presi dent to succeed James McBride. M. R. Lewis also was elected to the board of directors. New Cashier at J. C. Carnes has cashier of the First Seward, Nebraska, to Cozad. Mr. Carnes Rinard, Iowa. Seward. been elected National, of succeed L. E. comes from Banner County Cashier Resigns. New President at Beemer. M. Creamer, cashier of the I. E. Williams, formerly owner J. and president of the First National, Banner County Bank, of Harrisburg, of Loup City, Neb., is now president Nebraska, has resigned from that of the Edmunds State Bank, of position and will move to Lincoln. Beemer, Neb. Mr. Williams served Mr. Creamer was succeeded by 18 months as cashier of a Monroe, Henry J. Haun. Oregon bank to take the place of a McCook Bank Will Remodel. young man in service during the war. The First National Bank, of Mc Cook, Nebraska, is planning to re Changes to State Bank. model its bank building. Officers of The Fidelity National Bank, of the First National are: A. Barnett, Aurora, Nebraska, has been changed president; H. P. Waite, vice presi from a national to a state bank. It dent; W. G. Springer, cashier; J. will be known hereafter as the G. Schobel, assistant cashier. Direc Fidelity State Bank. The Fidelity tors are: A. Barnett, H. P. Waite, National was organized in 1906 by C. H. Boyle, F. A. Pennell and H. A. E. Siekmann, who is at present, P. Sutton. president of the organization. Other officers are: C. S. Brown, vice pres Bank Helps Local Merchants. ident, and B. W . Woodford, cashier. A series of advertisements under the slogan “ Trade at Home,” has Jansen Bank Has New President. been carried out by the Central City - Stockholders of the State Bank, National Bank, Central City, Neb. of Jansen, Nebraska, recently elec These advertisements have appeared ted Henry Heiliger, of Plymouth, both in the local paper and on cards to succeed C. W. Rohrbaugh as placed in the merchants’ windows. president. O. F. Heiliger, assistant The bank has been attempting to cashier of the State bank, was elec impress upon the buying public the ted a member of the board of direc value of supporting local industry. Officers of the Central City Na tors. Other officers are: F. C. Achteweien, vice president, and H. T. Fast, tional are : G. H. Gray, president; Geo. P. Bissell, vice president; Heber cashier. Hord, vice president; Ross B. Cox, Bankers Recommend Wheat Sale. vice president, and Floyd Peterson, Bankers of Red W illow county, cashier. Ross B. Cox, vice president and Nebraska, held a recent meeting in Floyd Peterson, cashier, are active Indianola. The recommendation of Secretary Hart, of the Nebraska officers. Banking Board, that farmers sell Colfax County Bank, Howells. twenty-five per cent of their wheat The Colfax County Bank of to liquidate a few of their outstand ing notes was endorsed by the con Howells, Nebraska, has resources and liabilities of $854,161.74. vention. OF ILLINOIS W CHICAGO E offer our facilities to out-of-town banks and bankers desir ing a complete Chicago correspondent service in domestic and foreign banking. Our booklet, “Through Bills of Lading,” mailed upon request. CORRESPONDENCE INVITED C ap ital and S urplus $7,000,000 D eposits $60,000,000 R ea d ers will c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 NORTHWESTERN BANKER 63 COUNTRY B A N K M C C O U N T S Receive th e b est service in co llectin g th eir Live S tock TH E O N L Y B A N K — in the — U NION S T O C K Y A R D S R etu rn s and G rain D rafts. C u sto m H as E stablish ed T h is T im e o f Y ea r for th e F o rm in g of G ood R eso lu tio n s J. F. CO AD, President H. C. Nicholson, V. P. and Cashier Why not resolve to obtain the quickest possible returns on proceeds of live stock shipments to this market? We will help you keep this reso lution. Write to us now. Stock Y ards National Bank o f S o u th O m a h a , N e b r a s k a T h e O n ly B a n k in t h e U n io n S t o c k Y a r d s OFFICERS Ford E. Hovey, President J. C. French, Vice President J. B. Owen, V. Pres, and Oashler J. S. King, Vice President F. J . Enerson, Vice President BANK STOCK Our reputation is your protection 17 years of satisfactory service to bankers W . L . Pier, Vice President H. C. Miller, Assistant Oashler W . H. Dressier, Asst. Oashler O. L. Owen, Assistant Oashler H. W . Vore, Auditor Your Account in This Bank assures you at all times of ample fundi to care for your requirements. All items will receive our immediate attention. Hundreds of progressive banks are using our services now— may we have an opportunity to serve you? Capital, Surplus and Profits $2,235,000.00 OFFICERS President Milton T . Chairman of The Charles E. Walters Co. 1422-30 First National Bank Building OMAHA, NEBRASKA Barlow Board Surdon W . Wattles U N IT E D Vice Presidents John L . Kennedy W m . E . Rhoades Robt. P. Morsman Cashier Jos. C. McClure STATES Assistant Cashiers Qwyer H. Yates Chas. F. Brinkman Thos. F. Murphy Ralph R. Rainey Harry E. Rogers Perry B. Hendricks N A T IO N A L OF OM AHA R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK THE 64 NORTH W ESTERN January, 1921 BA Worden Resigns at Ogallala. C. C. Worden, vice president of the Exchange Bank of Ogallala, Nebraska, has resigned from that position and will be succeeded by J. G. Doherty. Mr. Worden was with the Exchange Bank for fifteen years. Mr. Doherty has been with the Exchange Bank for two years and has been engaged in the bank ing business at Kearney and other points in Nebraska for eighteen years. Dedrich Succeeds Opper At Dalton. R. F. Dedrich, formerly assistant cashier of the Farmers State Bank, Dalton, Nebraska, has assummed the position of cashier to succeed L. C. Opper. R. F. Buchanan, assist ant cashier of the Dalton State Bank, has also been promoted to cashier since the resignation of T. L. Willis. Resources $10,000,000.00 NO LOSS of in terest on live stock co llectio n s if t h e L iv e S tock N a tio n a l B an k is your O m a h a corresp on d e n t. LIVE STOCK NATIONAL BANK UNION STO CK YARDS OMAHA Bankruptcy Proceedings. al Lincoln firms have petithat the American Potash Company of Delaware be adjudged a bankrupt and that a receiver be appointed. The company has head quarters in Lincoln. W . E. Sharp, president of the Lincoln Traction Company is president. The corpora tion has capital stock in excess of $2,000,000 and total indebtedness of about $375,000. Nebraska May Pass Bank Law. Governor McKelvie, of Nebraska, will ask the next legislature of that state to pass a state land bank law similar to the one in operation in South Dakota and Oklahoma, ac cording to a recent announcement. Governor McKelvie is seeking to improve credit, transportation and marketing by the passage of his proposed law. W E HAVE BEEN WALKING Temple Is Assistant Cashier. ON STILTS— LET’S COME G. A. Temple has assumed the DOWN TO EARTH. position of assistant cashier of the Chadron State B a n k , Chadron, (Continued from page 14.) Nebraska, to succeed Alfred Isham. behind them we must expect to suffer just as severely as we would if we should neglect the rules of Recent Bank Sales. The following are recent bank health which govern overeating. The paralyzing thing to the Ger sales negotiated through the agency of the Charles E. Walters Company, mans was the way our boys smiled Omaha, Nebraska: State Bank of when going into battle. That was Castleton, Kansas, to C. E. Gibbs; to the German, an unethical thing to Central State Bank of Council Bluffs do and a thing his Hun mind could Iowa, to W. M. Leise; Farmers not comprehend. That is the way State Bank, Leon, Kansas, to E. F. we will solve the present industrial Blake and the Farmers Savings trial—by meeting every day’s prob Bank of Ute, Iowa, to E. H. Pitt lems with a smile and a willingness man. A substantial interest in the to do the right thing at any finan Citizens State Bank of Griswold, cial cost. W e have been flying high for the Iowa, was also sold to M. L. Wehn. last few years. W e have been walk ing on stilts. Let’s make for the Neligh Bank Has New Building. nearest ladder, come down to earth. The Neligh State Bank, of Neligh, Then when we feel the supporting Ne'b., has moved into its new bank strength of terra firma beneath our building. Officers are: president, feet we can begin to climb again. W. T. Wattles; cashier, C. L. W at Morgan once said: “ The man who tles ; assistant cashier, Arlo Schmidt. tries to bear the United States in the TH E B AN K ER S HOTEL H o tel Snapp Our fam ous M ineral W a te r* prescribed by physician*. W« Will tqsip %or Officec Located nearer a?l the fa mous m ineral springs and places o f am usem ent than any other large hotel. OM AHA P R IN T IN G COMPANY Excelsior Springs, Mo. A B SO LU TELY F IR E -P R O O F Where Hospitality Reigns Supreme A y o u r a n d h o m e R ates from $4.00 to $6.00 per d ay . Am erican plan. w ife d a u g h te r . om ci rutimtc SUPPLIES OMANAS lar g est 13th. andJ FARNAM „u W rite for booklet fo r m o th e r , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ sonoras MTNOGOLPHnS RETAILERS (RGBAVIRS MOM UH( Operated on the Am erican Plan OTURG eCVICCS ART METAL 5Ares Reservations b y w ire or mail w ill have our immediate attention. Commercial Printers- lithographers - lo o se LEAF steel Die Embossers Devices January, 1921 THE market will go broke.” I believe the next ten years will be more pros perous to us as a Nation than the last ten years have been. The race cannot begin rightly till we are all back on the scratch line. So at the beginning of the New Year let’s all determine to start right, put our best efforts into every undertaking, play the game honest ly and bravely, and when the end of the year comes around again we will all be better men and our busi ness will be in sounder shape and in better form for service than ever before. Live Stock Exchange National. Liabilities and resources of the Live Stock Exchange National Bank of Chicago are $24,271,101.75. Officers are: President, S. T. K iddo; vice president, G. F. Em ery; assistant to the president, J. L. D riscoll; cashier, D. R. Kendall. PRESENT PRICES OF FARM PRICES W IL L CRIPPLE ALL BUSINESS. (Continued from page 25.) some source or other out of the mass of available credit that is existing today. That credit will be satisfied (or rather eased a trifle, I should say) at one point, and the same amount of strain must be applied to the same source of credit at some other point.) In other words, until this grain is finally disposed of to the consumer, it had better be carried in the hands of the producer, than in the hands of the speculator, be cause the speculator must find the funds to carry the grain that he buys and these funds will make a drain on available credits that will abso lutely counterbalance the sums that are being paid in by the producer. Isn’t this very clear? Just as simple as can be. It must be clear to all fair-minded people that a gross injustice is being heaped upon the farmer. W ell—you https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NORTHWESTERN BANKER may say, what are we going to do about it. This is what I would say in answer. First, to Congress I would say: Get down to business at once and protect the farming industry of the country as you are protecting other producers in all lines, with a reason able tariff. Then to relieve the present situation provide s o m e means of financing the present crop so that the farmer can secure ade quate compensation for his labors. To the bankers I would say.: Re solve to stand by the side of the farmer and let the world know at once of your decision. Make it firm, absolute and unequivocal. The moment you do this, the bear spec ulator will take to the woods and I will miss my guess if markets will not jump up very materially. Let the Federal Reserve Banks openly declare themselves in favor of credits secured by grain collateral, you canuot find better security and the fact that you declare yourself openly, will very likely obviate a great part of the call for this credit, as it is sure to reestablish markets to such an ex tent that the farmers will sell liber ally and the increased price will en able them to fill a great gap in the present weakening chain of credits. But act at once. To the farmers, I say: It is my belief that the people are beginning to recognize the justice of their posi tion and that if they will hang to gether and let the speculator under stand clearly that they have no thought to stampede and throw their grain away that they are on the very verge of turning the day. It is very much a question of sentiment, this market, and if you are able to start it your way things will right them selves very quickly. Perfect your organizations further, learn the best methods of using the tremendous strength, the overwhelming power that your numbers and the import ance of your industry should com- 65 The Merchants National Bank of O M A H A , NEBRASKA Capital____________ $1,000,000.00 Undivided Profits___$459,817,89 Surplus_____________ $500,000.00 Deposits________ $15,131,748.13 O F F IC E R S L U T H E R D R A K E , P re sid e n t F R E D P. H A M IL T O N , V . P re sid e n t B. H . M E I L E , V ic e P re sid e n t O. T . E A S T M A N , V ic e P re sid e n t S. S. K E N T , C a sh ie r H . D. B E N T L E Y , A s s is t a n t C a sh ier B. B . W O O D , A s s is t a n t C a sh ie r J. P. L E E , A s s is t a n t C a sh ie r C. M. F I X A , A u d ito r D IR E C T O R S LUTHER DRAKE F R E D P. H A M IL T O N G. S. R O G E R S G E O R G E N. P E E K F R A N K W . JUDSON CH A S. L. S A U N D E R S C. W . H A M IL T O N F. B. JO H N SO N N. B . U P D I K E A ccou n ts S o lic it e d U. S. DEPOSITORY The Omaha National Bank O m ah a, N ebrask a E s ta b lis h e d Surplus $1,000,000.00 in 1 8 6 6 Capital $1,000,000.00 Resources $35,000,000.00 J. H. M I L L A R D , Chairman of the Board W A R D M. B U R G E S S , B. A. W IL C O X . Vice President Vice President EZRA M ILLA R D , O. T . A LV ISO N , Cashier Assistant Cashier ED W ARD W . D A L E C L A R K , Assistant Cashier W A L T E R W . H E A D , President F R A N K BOYD, Vice President J. A. C H A N G S T R O M Assistant Cashier N E A L E , Assistant Cashier Exceptional collection facilities, the result of years of effort to improve service to correspondent banks. THE 66 NORTHWESTERN CORN EXCHANGE NATIONAL BANK January, 1921 BANKER W a lte r H . R h od es Confidential Bank Broker OF CHICAGO __________ » Capital 5,000,000 Surplu s and P rofits . 10,000,000 D e p o s i t s ..................... 115,000,000 BANKS AN D BANK STOCKS O m aha 1 For Correspondent Banks we will, on request, pur chase Prime Commercial Paper and Bank Accept OFFICERS E RN EST A . H A M ILL, Chairman o f the B oard EDMUND D. H U LB E R T, President CH ARLES U. HUTCHINSON, V ice P resident OWEN T. R E E V E S , JR., V ice President J. E D W A R D MAASS, V ice P resident NORMAN J. FORD, V ice P resident JAMES G. W A K E F IE L D , V ice President E D W A R D F . SCHOENECK, Cashier LE W IS E. G A R Y, A ssistant Cashier JAMES A. W A L K E R , A ssistant Cashier CHARLES NOVAK, A ssistant Cashier ances and will also handle Bill of Lading Items. ^ N a t io n a l of ( i t y R a n k (ÏIIC A G O DAVID R . FORGAN, President DIRECTORS WATSON F . B L A IR CHAUNCEY B. BORLAND E D W A R D B. B U T L E R BENJAMIN C A R P E N TE R CLYDE M. C A R R H E N R Y P. CRO W E LL E R N E ST A . HAM ILL EDMUND D. H U LB E R T CHARLES H. HULBURD CHAS. L. HUTCHINSON JOHN J. M ITCHELL M ARTIN A. RYERSON J. H A R R Y SELZ E D W A R D A . SHEDD R O B E R T J. TH ORNE CHARLES H. W A C K E R BANKS AND BANKERS DEPARTMENT F. A. Crandall, Vice Pres. S. P. Johnson, Asst. Cash. Henry M eyer, Asst. Cash. R. V. Kelley, Asst. Cash. R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 January, 1921 THE mand and when you have found them use them reasonably. Let your organizations co-operate with the state and federal author ities, to the end of stabilization of the markets and strive for the day when you may be able to name the price for your products under the advice and co-operation of the state and federal government, and then have your organizations sufficiently bound together and so arranged, that you will be able to control the disposition of surplus grains in times of plenty— for instance, shipments to famine-stricken China and Ar menia could be provided a n d financed in this way— to your own advantage and if possible, that you may be able to finance your organ ization in such shape that you can step into the Bear’s Den, on the floor of the exchange in Chicago and make it known to the speculator that you have grown big enough to look after your own business, and can fix prices for yourself. Educate the masses to the truth t h a t a depression of markets through bear raids of speculators does not result in any gain to the consumer because the abnormal de pression is bound to create addition al export trade, which makes the domestic supply that much shorter, causing eventually higher prices to the home people. Make the people understand that hard times to the farmer is sure to be reflected in turn upon the other classes of people en gaged in the different industries. Live economically as you can and stop all unnecessary buying so that all available credits will be pre served to tide the difficult pass. Finally when prices are back to a fair living basis, do not become un reasonable as other great bodies of organized industries have sometimes been. Let the nation understand that you are out for fair play and that you are not seeking any special NORTHWESTERN BANKER favors and will not hold out for any unreasonable gains. Finally to the great mass of Amer ican citizens, I say: Open your eyes to the fact that the position of the farmer is just and reasonable. No matter what your class or your oc cupation rest assured that your in dividual prosperity and well being depends absolutely upon that of the farmer. If you have labored under the false impression that the farmer is a profiteer and that his demands are not reasonable, and if after reading this article you are not yet convinced that he is in the right, for your own instruction, seek at once, the truth of the matter from the departments of agriculture of State and Nation, and learn the facts. If grain remains where it is now and the farmers refuse to sell as they no doubt will, credits are going to become strained to the breaking point and we have some hard times ahead of us. On the other hand, if grain prices are reestablished and grain moves normally in a few weeks, there is every reason to be lieve, owing to the position that we today occupy among the nations, financially, that we are on the verge of an era of prosperity unforeseen. I am confident that all are willing to do their part and I have hope that things will be normal again be fore many weeks have passed. The American people are generally fair enough and intelligent enough to do the right thing, if it is clearly shown to them in the right light. I am going to trust the great American Spirit to once again get us through the storm safely. 67 BANK SUPPLIES From a Dependable Source It is to the interest of every banker to be in touch with an establishment on which he can depend for his bank supplies. is this true ent time. Especially at the pres We offer you the services of our organization which has had 40 years’ ex perience in making supplies for the banks of the middle west. An order from you will allow us to demonstrate what we can do. A Man of Account. “ Got a new job, eh? What doin’ ? “ Cashier in a police station.” “ Never heard of such a thing? What’s yer dooty?” “ Dooty ? I count the coppers as they come in.” H AM M O N D P r in tin g C o . Frem ont, Nebraska JOSEPH W A Y N E , JR., P resident A Vw N d i h H; LlcVJ’rn:ld,:,,t CHARLES m . a s h t o n , c a s h ie r A. W . PIC K FO R D , V ice P resid ent A L F R E D B A R R A T T , A ssistant Cashier D A V ID J. M YERS, A ssistant Cashier The G irard N ational Bank P H IL A D E L P H IA , P A . Capital, $2,000,000 Surplus and Profits, $7,126,000 Deposits, $67,000,000 ACCOUNTS OF BANKS AND BANKERS SOLICITED “ To Handle Your Business Satisfactorily, You Need a Philadelphia Account” R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 68 NORTHWESTERN BANKER January, 1921 M IN N E SO T A B A N K N E W S Will Convene at Minneapolis. The Executive Council of the American Institute of Banking has selected July 19, 20, 21 and 22, 1921, as the dates of its nineteenth annual convention to be held in Minne apolis, Minnesota. Mankato Bank Is Remodeled. The National Bank of Commerce, Mankato, Minn., has been entirely remodeled. Hundreds of patrons and friends were present at its recent re-opening. Officers of the bank are: President, John H. Hohman; vice president, William F. Highes ; cashier, Emil A. Boie; assistant cashier, Harold G. Silber. Celebrates First Anniversary. The Olmstead County State Bank, of Rochester, Minn., recently cele brated its first anniversary. After one year of business the bank now has deposits amounting to $340,000. Present officers are: president, E. C. Green; vice president, Clarence Thom pson; cashier, C. F. Dabelstein and assistant cashier, A. Lamprecht. Elects New Assistant Cashier. No Change at First National. Ben Hurley, of Pine City, Minn., w as recently elected assistant cashier of the Security State Bank, Sandstone, Minn. Mr. Hurley succeeds 6 . A. Swanstrom. Owing to an error on the part of a correspondent of the Northwestern Banker it was announced last issue that the First National Bank of Minneapolis had elected A. F. Lud wig, cashier to take the place left vacant by the resignation of C. W. Borcher. This story slipped by the usually watchful eye of the editor, and was instantly seen by many friends throughout the northwest. The item of course should have re ferred to another bank, as our good friend S. H. Bezoier is cashier of the First National Bank of Minnea polis. No change of course is con templated at the First National Bank of Minneapolis. As our friend Mr. Bezoier says, in a letter to the publisher, “ Next time you start throwing titles around promiscuously, it might be a good idea to remember your old friends and slip me the presidency of the National City Bank of New York or some such institution.” Leonard Hanson Elected. Leonard Hanson has been elected assistant cashier of the First Na tional Bank of Dodge Center, Minn. Mr. Hanson was formerly connected with the Farmers and Merchants National of Minneota, Minn. Farm Mortgage Bankers Meet. The Minnesota Farm Mortgage Bankers Association held a dinner recently at the Minneapolis Club in Minneapolis. Dean Dowrie, of the University of Minnesota School of Business, was the principal speaker, on the subject, “The Present Finan cial Situation.” Attorney J. F. Horn of the Wells-Dickey Company dis cussed the standardization of forms for making applications for farm loans. A committee was appointed to investigate standard application blanks with corresponding forms. Efficient Service to Correspondent Banks Practical business men direct the affairs of this bank. They are men who know the requirements of out-of-town bankers and who are daily applying that knowledge constructively in rendering service to over 700 correspondents. Friendly co-operation has always characterized our relations with correspondent bankers. M ay we extend this helpful service to you? M idland N ational Bank M IN N E A P O L I S Resources— $24,000,000.00 it m R ea d ers w ill c o n fe r a fa v o r h y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN 69 BANKER T h e F irst National Bank o f S t. Paul Established 1863 Capital and Surplus , Five M illion Dollars This strong, progressive bank, conducted along con servative and modern lines, offers every facility consistent with sound, prudent banking for the sat isfactory handling of your Northwestern business. R esources S ix ty -T w o M illion Dollars Charles M. Amsden Dies. Advice To Minnesota Bankers. E. G. Quamme Elected President. Charles M. Amsden, pioneer grain man and one of the founders of the Swedish-American Bank, of Minne apolis, later consolidated with the Northwestern National, recently died at his home in Minneapolis. Mr. Amsden was a member of many clubs in Minnesota and was a char ter member and director in the Swedish-American bank, founded in 1888. He remained with the direc torate until the bank consolidated with the Northwestern in 1908. Secretary Richards, of the Minne sota Bankers Association, has is sued a warning to bankers against a new proposition that is being worked in that state. A note from an individual is sold to the bank at a discount and a time certificate of deposit is given in exchange. The trouble comes when the maker of the note decides that he has been “ stung.” He will naturally think the bank is a party to the transac tion. Secretary Richards advises that the banker talk the matter over with the maker of a note before buying it. At a recent meeting of the federal land bank associations and agencies, E. G. Quamme was elected presi dent, H. K. Jennings, secretary, and G. O. Hage, president of the Crookston Trust Co., of Crookston, Minn., was elected treasurer. May Have New Bank Law. The new Roseau County National Bank, Minnesota, has opened for business. Its capital is $30,000. Elect New Cashier. P. J. Peterson, formerly assistant cashier of the Bank of Long Prairie, Long Prairie, Minn., was elected cashier at a recent meeting of the board of directors. Mr. Peterson succeeds the late W . E. Lee. Other bank officers are: George R. Christie, president, and Raymond A. Lee, vice president. Appoints Assistant Cashier. The First National Bank, of Waconia, Minn., announces the promo tion of R. B. Allmann to the posi tion of assistant cashier. Officers of the bank are : C. H. Klein, pres ident; E. H. Mock, vice president; P. A. Glaeser, cashier; R. B. All mann, assistant cashier. Plans for a voluntary guaranty bank deposit law for Minnesota have been discussed by a committee of five senators, appointed by Lieut enant Governor Frankson. A report of the senate will be given by the committee after the framing of a suitable measure. Bergerud Enters Insurance Field. H. H. Bergerud, formerly assist ant cashier of the First National Bank, Breckenridge, Minn., is now in the insurance business at Fergus Falls. Mr. Bergerud was succeeded by E. G. Gesterling. New Bank at Roseau. St. James Bank Changes Name. The title of the Citizens National Bank, St. James, Minn., has been changed to the Citizens and Secur ity National Bank. Fergus Falls National Bank. A recent statement of the Fergus Falls National Bank, Fergus Falls, Minn., shows resources and lia bilities totalling $1,849,034.89. Offi cers of the bank are: Joseph S. Ulland, president; E. H. Rich, vice president; Frank J. Evans, cashier. Farmers State Opens For Business. The new Farmers State Bank of Lakeville, Minn., has opened for business. Officers are: President, J. Van Valkenburg; vice president, L. F. D ow ; and cashier, H. J. Van Valkenburg. Guaranteed Electric Burglar Alarm Systems BUILT B Y The American Bank Protection Company, I nc. CAPITAL $150,000.00 Minneapolis - ( Minnesota Are recognized by all Bonding Companies— Write for particulars. DO IT NOW. We also build Safety Deposit Boxes, Vault Omnibuses, Steel Filing Device« R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 70 NORTHWESTERN BANKER January, 1921 crete suggestions for relieving the situation were presented. P. H. Evans, an Owatonna banker, sug gested the feasibility of a depart ment of the Federal Reserve to handle farmers’ paper offered for re eral Reserve Bank in limiting re discount, exclusively. W . A. Streadiscounts to a fifteen day limit was tor, of Mankato, presented the plan of adopting a policy that would dis a distinct handicap. Third, Harry Yaeger, represent tinguish liquid assets on farms from ing the ninth Federal Reserve Bank those in mercantile lines. George H. Richards, secretary of urged that farmers market enough of their crops by January 15th to the Minnesota Bankers Associa enable each producer to pay off a tion, urged the farmers to meet the banks half way and to market fourth of his obligations. Among other points of importance enough of their crops to pay the re was the hint that country banks quested 25 cents on the dollar. H. were not taking their customers H. Farmer, of Airlie, defended the into their confidence fully enough. practice of holding grain, insisting Country bankers expressed their un that if the farmers sell their grain willingness to force patrons to the as they have in the past, the market wall, even if the banks had to close would see a more pronounced defla their doors for a time. President tion than is perceptible at present. Potter, of the Farm Bureau, de “ The farmers have lots of grain,” clared that farmers have an enor he said, “ but it is worth little or mous purchasing power, but that nothing despite the fact that we have their interests must be protected in banking obligations to meet.” order to keep that power constant. Heard at a Reception. He made a plea for the young farm “ W ho is that very popular young ers and renters who have all their money wrapped up in this year’s woman over there?” “ She’s the daughter of a bank crop, produced at an enormous cost and which, if sold now, would result president.” “ Ah! No wonder she draws so in an extreme loss. At the Owatonna meeting con much interest.”— Boston Transcript. Farmers and Bankers Troubles Aired at Minnesota Meetings T the call of L. E. Potter, president of the Minnesota Farm Bureau Federation, a series of farmer-banker confer ences was held in Minnesota for the purpose of promoting a better un derstanding of the present financial situation. The first meeting was held at Marshall, Minn., and was attended by about 700 farmers and bankers. Other meetings were held at Crookston, Owatonna and St. Cloud. Publicity was given them by County Agents and by G. H. Richards, secretary of the Minne sota Bankers Association. The discussions, in most cases, revolved around existing economic problems. Three distinct attitudes were evidenced in the conferences: First, the farmer speakers con tended that a financial crisis would be brought on if the banks attempted to force liquidation just at this time. Consequently, hardship and ruin would result in the case of many small farmers and renters. Second, county bankers declared that the present policy of the Fed A Banks “that measure up” In times of unusual economic con ditions it is the unusual Bank which “ measures up” to every re quirement. In Minneapolis, The First National Bank, with its vast resources of over One Hundred Million Dol lars, stands as a tower of financial strength, serving with ability and keen intelligence the business of the Northwest. Distinctly this is a bank which “ measures up.” F ir s t N a t io n a l B a n k M IN N E A P O L IS Resources over $100,000,000.00 R ea d ers ivill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER Celebrates 56th Anniversary. The First National Bank, of Rochester, Minnesota, recently cele brated its fifty-sixth anniversary. John R. Cook was the founder of the bank in 1864. This bank was char tered as a national bank in that year and has continued as a national bank for fifty-six years. It has occupied its present quarters with enlarge ments for fifty-two years and all that time as a tenant. It owns no real estate. It was the 579th national bank chartered in the United States and the fourth in Minnesota. The bank is under the management of C. A. Chapman, active vice president, formerly of Council Bluffs, Iowa and Kansas City. The other officers are : J. H. Kahler, president (inactive) ; B. W . Eaton, vice president (in active) ; L. J. Fiegel, cashier; F. L. Josselyn, assistant cashier; and E. A. Cegal, assistant cashier. Capital and surplus are $270,000. Deposits are $3,000,000. New Duluth Bank Entertains. The officers and directors of the Minnesota N a t i o n a l Bank, of Duluth, Minn., gave a recent dinner to their stockholders and northern Trust Companies Show Growth. Trust companies, of Minnesota, report a 43 per cent increase in busi ness for 1920 over the year 1919. This is in accordance with the figures of the United State Mort gage & Trust Company, New York. B. M. PEYTON Minnesota bankers. Over thirty bankers and 268 stockholders were present. The officers of the new bank are: president, B. M. Peyton; vice presi dent, J. H. McClean; cashier, J. N. Rubber Stamps of Every Description Other Specialties— Seals, Check Protectors K ey Checks, Identification Checks Desk Plates, Signs, Pads, Inks IN THE STA M P LINE Income Tax Service Auditing Accounting Systems P u b lic https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A c c o u n t a n t s B u ild in g M I N N E A P O L I S A t la n t ic L IN E M ETHO DS O R G A N IZ A T IO N The essential machinery of business is com petent organization. This means the selection of human beings endowed with intelligence, suited to their work, and equipped with a Sys tem functioning at all times along straight lines. Under proper organization System is the simple, direct means to perfect functioning— economic and progressive. Business today suffers from too much red tape. And System is blamed. The fault lies not in System, but in its application. System, to be wholly successful, must be ap plied with m e th o d in the hands of a competent organization— trained human beings fitted to and interested in their work. Long experience in the building of competent organizations and the application of System, based on facts and figures, is the definite serv ice rendered by the Straight Line Methods ERNST & ERNST CHAS. H. PRESTON & CO. P ly m o u t h Stock Yards National, St. Paul. The Stock Yards National of South St. Paul, of which J. S. Bangs is president and C. E. Mills, cashier, has resources and liabilities aggre gating $6,487,424.95. S T R A IG H T St. Paul, Minnesota 1 0 4 0 -4 1 Peyton; assistant cashiers, W . F. McLean and G. H. McCarthy. Directors are: A. L. Ahlen, W. M. Evered, Wm. Harrison, D. T. Helm, A. B. Kenney, W . F. McLean, J. N. Peyton, H. F. Williamson, J. L. Banks, John Grandy, Cavour Hart ley, F. E. House, J. H. McLean, B. M. Peyton, T. U. Sebenius and Louis Zalk. The Minnesota National has a capital of $600,000 with a surplus of $120,000. On the day of its open ing, deposits exceeded one million dollars. B. M. Peyton, president of the new institution, is also the controll ing factor in the Superior State Bank, Superior, Wis., a director in the First National Bank, Proctor, and a director in the Citizens State Bank, W. Duluth, Minn. John N. Peyton, cashier of the Minnesota National, is likewise president of the Citizens State Bank of W. Du luth. NORTHWESTERN STAMP WORKS AND IN FACT ANYTHING 71 2 7 7 7 AU DITS - S Y S T E M S TAX SERVICE New Y o rk Ph ila d e lp h ia Boston Providence W ashington Cleveland C in cin n a ti Chicago B u ffalo Indianapolis M inneapolis St. P a u l Pittsbu rgh T oled o St. Loul* D etroit A tla n ta Kansas C ity G rand Rapids Richm ond S T R A IG H T L IN E M ETHO D S New Orleans Dallas F o r t W o rth Houston Denver 72 THE NORTHWESTERN BANKER January, 1921 Northwestern National. A statement of condition from the Northwestern National Bank, Min neapolis, shows resources and lia bilities amounting to $78,972,050.38. Officers are : President, Edward W. Decker; vice presidents, Theo dore Wold, James A. Latta, Alex ander McRae, Wiliam E. Briggs and Robert E. Macgregor; cashier, Scott H. Plummer. Bonus Given to Employes. Der Weyer and J. A. Oace; cashier, W . W . Lindeke; assistant cashiers, The First National Bank of Chi cago and its affiliated institution, H. Van Vleck, G. C. Zenzius and the First Trust & Savings Bank, H. R. F'airchild. have distributed to their forces an amount equal to ten per cent of each Organize New Bank at Pineville. employe’s annual salary. Both A new state bank at Pineville, banks have made two previous dis tributions this year; one April first Minn., is in process of organization. and one August first of like amount, Incorporators are: Arne Knutson, so that the employes have received A. D. Stephens, H. H. Hagen and during the year extra compensation H. S. Halvorson. Elect Schendel President. equivalent to thirty per cent of A. D. Schendel, of Minneapolis, their annual salaries, or four Windom National Moves. has purchased a controlling interest months’ extra pay. Increases in in the Continental State Bank. Mr. salaries have also been quite gen The Windom National Bank, of Schendel has been elected president eral during the current year. Windom, Minn., recently moved to and a member of the board of direc its new location. tors. He was formerly president of Merchants National, St. Paul. the Farmers and Merchants Bank, Eyota Cashier Is Married. Holloway, Minn. Resources and liabilities of the J. F. Guzinski, cashier of the Merchants National Bank, St. Paul, Minnesota Bank Increases Capital. Minn., are $44,953,500.72 according Citizens State Bank, of Eyota, Minn., The Bank of Glencoe, Minn., has to a recent statement. Officers are: was recently married to Miss Ade increased its capital from $50,000 to president, R. C. L illy; vice presi laide Brezinski, of Minneapolis, dents, F. E. Weyerhaueser, H. Von Jj“Minn. $100,000. A n Exceptional Opportunity Every commercial borrower— merchant or manufacturer— must take inventory at least once a year. Now, more than ever before, bankers realize how essential it is to have an inventory that will re veal an accurate statement in relation to stocks and their value. ; The prevailing sharp readjustment in all lines justifies every banker who is extending loans to require bed-rock statements from borrowers. The present time, therefore, offers an exceptional op portunity to encourage commercial customers to prepare a financial statement, based upon a complete examination of the office records. Business men are relying today on the banks in an extraordinary degree. They are responsive to recommendations that will speed-up operation and strengthen management. They are more willing to conform to enlightened credit requirements. The banker is, therefore, in position to induce com mercial customers to recognize the value of improved office records and simple and definite cost-finding methods. Act Now! You will find it an easy matter to convince the business executive why it is neces sary to determine current assets and current liabilities on a definite basis, and how a complete financial statement representing marketable values will react to the benefit of both the bank and the customer. WOLF AND COMPANY N ew Y o rk P h ila d e lp h ia A t la n t a In d ia n a p o lis M ilw a u k e e T u ls a Accountants (Formerly Baker, Vawter & W olf) DES MOINES C h ic a g o K a n s a s C ity D e s M oin e s O k la h o m a C ity M usk ogee F o rt W o rth 1101 R. & T. BLDG. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE January, 1921 NORTHWESTERN 73 BANKER Bank and Fanner Cooperation The Imperative Need Now HE country bank, close to the farmer and most familiar with his problems, is in the position of first importance of all agencies that must work together to hasten the business readjustment which everyone, now recognizes as imperative. T And that does not mean that the country bank is to assume the whole burden and strain its finances to the breaking point. Indeed it is as much a problem in common sense as of finance, a question of educating clients away from miracles and towards economies. The farmer must co-operate. Along with all others engaged in basic industry he must recognize that the halcyon days of abnormally high prices are gone beyond recall! Hereafter the one thing that is going to make any occupation profitable is good hard work and the eye to efficiency that prevailed before the war. Making the Farm 1 0 0 % Efficient Assuming that every farm should be a com plete plant, the country banker has only to look about him to find many farms that are anything but complete. There has been neglect of jarm building for several years. Very generally speaking the country’s farms lack barns, granaries, corn cribs, implement sheds, hog houses. If your bank lacked adding machines, typewriters and a safe it would be no more inefficient than the farm without its proper complement of buildings. Farm buildings of one sort or another pro vide storage for crops, safety for cattle, hogs and horses— in short the absolutely essential machinery for both production and control of farm products. Help the farmer get upon a plane of 100% efficiency. Then the farmer can help you — by giving you the business, direct and indirect, which his sound position will create in your community. How to Judge Present Building Costs Local building costs in many communities still reflect the high prices of the late, general inflation. But national prices show reduc tions which no banker can afford to overlook. You can post yourself as to how low build ing costs should be by merely requesting us to send you our books, “ Gordon -Van Tine Homes,” “ Gordon-Van Tine Farm Build ings,” and our Building Material Catalog. Furthermore, the building costs these books show are wholesale, direct from mill to owner prices. But send for the catalogs, make compari sons and judge for yourself. You will then not question the safety of your building loans and can conservatively advise your clients to make the farm 100% efficient by means of necessary improvements. Gordon-VanTine Go. E S T A B L I S H E D 1865 Satisfaction G uaranteed or Money Back Resources over $1,000,000.00 R E F E R E N C E S : c ia l N a tio n a l 7275 Case Street A n y B a n k , B a n k C h ic a g o , in D a v e n p o r t ; 1 1 1 .; N a t i o n a l C o n tin e n ta l C i t y B a n k , N a n d e w C o m Y o r k m e r C i t y Davenport, Iowa l R ea d ers w ill c o n fe r a fa v o r l>y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 74 THE NORTHWESTERN BANKER January, 1921 M O N TA N A BANK NEW S A. T. H ibbard, A ssocia te E d itor (S ecreta ry M ontana B ankers A s so c ia tio n ). Molt Cashier Resigns. Roy Painter, formerly cashier of the First National Bank, Molt, Mont., has resigned from that posi tion. Mr. Molt has not announced his future plans. He is succeeded by J. E. Manning, formerly assist ant cashier of the First National at Hysham. J. N. Harvey Resigns Position. J. N. Harvey, formerly cashier of the First State Bank of Chester, Mont., has resigned from that posi tion. He is succeeded by Oscar Ness, formerly assistant cashier of that institution. Magraw May Retain Office. Montana bankers are wondering who will be the choice of Governorelect Joseph M. Dixon for the posi tion of state superintendent of bank ing. H. S. McGraw, the present superintendent, is a democrat, while the newly elected governor is a re publican, but many bankers are of the opinion that Mr. McGraw should be retained in office. Favors Irrigation Bond Investments. Henry Gerharz, president of the Gerharz-Jacqueth Engineering Com pany, of Great Falls, Mont., is writing a series of articles for the Montana papers on the subject of investment in irrigation bonds. Mr. Gerharz is of the opinion that in vestment in such securities will be of great value both to the investor and to the state of Montana. Will Organize Bankers’ Club. Bankers of Missoula, Mont., have undertaken the organization of a Missoula Bankers Club. Elected Deputy Treasurer. Murray Dolliver, who has been connected with the State Bank of Windham, Mont., has been made deputy treasurer of Judith Basin county. Hinsdale Bank Closed. The First National Bank of Hins dale, Mont., has been closed tem porarily. Its affairs are being in vestigated by the bank examiner. No definite announcements as to its future status have been given out. Banks Join Federal Reserve. Membership in the Federal Re serve System was recently an nounced by the Metals & Trust Company of Butte, Mont., by the Security National Bank of Lima, and by the Farmers State Bank of Worden. Heslet Appointed Treasurer. J. K. Heslet, assistant cashier of W. A. Clark & Brothers, has been elected treasurer of the Pacific Northwest Newspaper Association. A meeting of this organization was recently held in Seattle. Enter Insurance Field. Frank Wiggins and High Smith, cashier and assistant cashier, of the First State Bank of Clyde Park, Mont., have been appointed local agents for the Northwestern Life Insurance company of Minneapolis. Foreign Rem ittance Service T he f o r w a r d in g of m o n e y t o Europe has grow n to a large volum e. Banks seeking facilities for handling and developing such business can be served com pletely through our Overseas Division. For remittances to towns w ithout banking facilities our Post-Re?m ttance Service is advantageous. It effects paym ent in foreign currency, by regis tered mail, directly to the address o f the payee. Our D irect D ra ft Service for banking institutions enables you to sell drafts, at current exchange rates, on points throughout the w orld. Blank forms and drafts, w ith your name printed thereon, are supplied to you, and exchange rates are furnished daily. W e shall be pleased to send you detailed inform ation and specimen forms. Guaranty Trust Company o f New Y ork N EW YORK LONDON P A R IS BRUSSELS Capital and Surplus $50,000,000 L IV E R P O O L HAVRE C O N S T A N T IN O P L E Resources more than $800,000,000 Readçr$ w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to dur a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE Humphrey Heads Association. J. L. Humphrey, Montana Man ager for the Capital Trust & Sav ings Bank, of St. Paul, was elected president of the Montana Farm Mortgage Bankers Association at a recent meeting in Billings, Mont. Mr. Humphrey was formerly vice president of the association and suc ceeds former president E. B. Mount, who has removed to Spokane, Wash. R. W . Reynolds, president of the Cook-Reynolds Company, of Lewistown, was elected vice president, F. A. Howard, treasurer of the Mon tana Life Insurance Company, was elected a member of the executive committee to fill the position left vacant by Mr. Mount. Former Governor and Banker Dies. B. F. White, former governor of Montana, and president of the First National Bank, Dillon, Mont., died, following a brief illness. Mr. White began his business career in Butte, and was one of the pioneers of the town of Dillon. He was cashier of a bank which he founded in 1881, and became president of that insti tution when it merged with the First National in 1884. Great Falls Banker Resigns. H. F'. Lee, vice president and man ager of the Commercial National Bank, of Great Falls, Mont., has re signed to make his future home in California. Mr. Lee plans to enter the banking field in that state. R. B. Noble has assumed the manage ment of the Commercial National since Mr. Lee’s resignation, although no successor has been elected by the board of directors. Is Montana Down-hearted? No. An inspiring letter from the Treasury Department, Ninth Fed eral Reserve District, says : “ There is nothing vital the matter with us or the times, nothing to be indiffer ent or pessimistic about except our mental reaction from the effects of the war, and in this we have in dulged ourselves long enough. “ Montana, as you all know, has just wound up four years of ex tremely difficult times. The first three years of the four were drought years, and now that the fourth year has produced a fair crop in most parts of the state, the market for the products raised has been slipping away from them to a price, which is almost impossible to make a profit on in any line. “ The people of Montana have, in spite of all handicaps, simply taken NORTHWESTERN BANKER 75 up their belts a couple of notches, stuck out their chin a little further and said to each other and the world at large: ‘Are we down hearted ? No, we have just begun to fight.’ ” Montana Bank Re-Opens. The First National Bank, of Hins dale, Mont., has been re-opened after being closed for ten days. Scobey Bank Closes Temporarily. The Citizens’ State Bank of Scobey, Mont., has been temporarily closed. Its affairs are in the hands of C. S. Prouty, deputy of the state banking department. The refusal of farmers to liquidate their notes is given as the cause for the bank’s action. Surveys California Oil Situation. W. W. Woods, vice president of the First National Bank of Los An geles, Cal., is the author of a very detailed report on “ The California Oil Situation.” The material in cluded in this report was gathered by the research department of the First National, of which D. M. Rey nolds is director. The F irst N a tio n a l B a n k o f B o s to n Capital, Surplus and Profits $ 3 7 ,5 0 0 ,0 0 0 Deposits $ 1 8 1 ,5 0 0 ,0 0 0 Resources $ 2 6 4 ,0 0 0 ,0 0 0 Make It Your New England Correspondent Dependability in Banking Service Dependability in banking service has always been the one recognized important factor that is demanded by the depositor of a bank in handling his funds and business problems of a financial nature. In making your banking connection it should be done with the greatest care, and with consideration of the record and standing of the institution which invites your business, as well as the service it is able to render you. With a record of thirty-seven years of practical banking, with resources of more than seventy million dollars— we offer you a banking service that is broad and comprehensive in its scope and especially adapted to meet your every particular financial requirement. The Seaboard National Bank o f t h e C it y o f N e w Y o r k Capital, Surplus and Profits over Five Million Dollars R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 76. NORTHWESTERN BANKER January, 1921 NO. DAKOTA BANK N EW S Plan to Market State Securities T hrough Corporation LANS for the organization of a $ 1 ,000,000 corporation for the purpose of marketing North Dakota securities outside of the state have been made by the finance committee of the North Dakota Bankers Association. A recent meeting of that body at Fargo re sulted in the appointment of a com mittee to work out the details of the plan. George Hollister, Fargo Ed Pierce, Sheldon; E. J. Weiser, Fargo; F. W. Cathro, Bismarck; J. J. Nierling, Jamestown; H. P. Beckwith, Fargo; and W . C. McFadden, Fargo, were appointed to serve on the committee. Through the proposed organiza tion it is expected that North Da kota bankers will be able to enter the securities market with the state’s paper to a much greater ad vantage than formerly. The proposed corporation will adopt a plan for the issue and sale of debentures as well as for the sale of mortgages and warrants. It is proposed to obtain the services of an expert bond and security man to manage the cor poration and to keep the corporation closely allied with the state bank ers’ association. Stock in the organization will be sold in blocks of from $500 to $5,000 to member banks . of the state association. It will negotiate loans P Will Change Registered Forms. W . C. McFadden, secretary of the North Dakota Bankers Association, announces that the use of the Minneapolis Fire & Marine Insur ance Company forms for insuring registered mail shipments shall be discontinued by members of the North Dakota association after De cember 31st. An open policy for the benefit of member banks was taken out with the Minneapolis Fire & Marine a year ago, but the companv has not found the business profitable and has therefore asked for a discontinuance. After Decem ber 31st, member banks will be fur nished with similar forms for regis tered mail packages in the Marine Insurance Company of London. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for and dispose of securities for the banks of its members or stockhold ers who might not be in a position to accomplish this through their regu lar correspondents. It will not attempt to compete with regular banks or to handle business other than for its members and stockhold ers, and then not when such busi ness could be handled through their regular correspondents. According to present plans, the new corporation will be operated on the co-operative plan, as nearly as possible, not with the expectation of dividends, but with the idea of service and to place it on a selfsupporting basis. An organization will be provided through which any of its members, solvent but with de pleted reserves occasioned by cir cumstances, may receive prompt aid. A board of fifteen members, scattered throughout the state, geographically, will govern the actions of the corporation. J. J. Early, of Valley City, chair man of the executive committee of the state bankers association de clared that it is intended to make the corporation a permanent part of North Dakota’s financial structure. “ W e believe that there is a field for it and that it will become a big fac tor in efficient marketing of North Dakota securities outside of the state,” said Mr. Early. building and installing a heating plant, electric lights and modern lavatory. This bank was organized in 1886 with a capital of $5,000.00 and has increased its capital and sur plus regularly. In July, of 1920, the capital was increased to $30,000 and surplus to $6 ,000.00 with com bined assets of over $40,000.00. The present officers of this institution are as follows: V. E. Bemis, president; R. E. Walker, vice president; C. H. Cruttenden, cashier and H. B. Bemis, assistant cashier. “Don’t Rock The Boat.” Under the heading, “ Don’t Rock the Boat While W e Make the Grade,” O. E. Lofthus, state bank examiner of North Dakota, has is sued this statement : “ A bank is a necessity to a com munity and if properly managed, is of great service. The closing of a bank at this time, is not necessarily the result of mismanagement, but may be the result of conditions past and present. While we make the grade it will help much to have the undivided co-operation of all and depositors can assist by checking sparingly and aiding deposits un selfishly. Debtors and patrons should at least sell enough to keep up the necessary reserve of their banks at this time. It is up to each locality to see that banks have the legal and necessary reserve. Con ditions are abnormal and because of that correspondent banks are in like conditions and unable to meet serv ice required of them. The trouble is national, not local only, and all should give aid freely and unself Tight Money Hits North Dakota. ishly in that we may weather the The First National Bank of Me storm with the least possible num dina, Stutsman county, North Da ber of accidents.” kota, is the first member of the Fed No receivers have been named eral Reserve System to close its for any banks, the examiner said, doors on account of the finacial because none are considered beyond situation. Other North Dakota reopening and none will be ap banks which have already closed pointed until an examination is com are: Citizens State of Edgeley, pleted. State Bank of Nortonville, Citizens State of Antler and the Security Will Stage Corn Contest. State of Mohall. The banks of Hettinger county, Inkster Bank Makes Improvements. North Dakota, have announced a The Bank of Inkster, of Inkster, collection of cash prizes to be given N. Dak., the pioneer organization of in a corn growing contest for 1921. that part of the state has been Bankers and farmers of that county making considerable improvements have as their aim, ten thousand in its banking quarters by adding acres of corn and 100 silos by the a spacious office in the rear of the close of next year’s corn season. January, 1921 THE Money NORTHWESTERN BANKER Finance Tractors to Hart-Parr Company is depositing money in the local banks where they have dealers, the money to be used in financing tractor sales in that community. By making such deposits each community is made more prosperous, as the Hart-Parr tractor is a money producer and deposits stay in the community until the tractor earns all or at least a part of the money to pay for itself. Bankers proclaim the Hart-Parr deposit plan the greatest tractor plan ever offered. If we have a dealer in your town, see him and get full particulars of this plan. If we have no dealer in your town, perhaps you can recommend one, and in turn we will give you full particulars of our deposit plan. Hart-Parr are ‘‘Founders of the Tractor Industry.” Our three-plow tractor has a record unequalled. Twenty years experience in build ing and marketing farm tractors is back of each tractor we build. For 1921 we have added a new two-plow tractor giving Hart-Parr dealers a contract that will dominate the tractor business in his community. H A R T -P A R R C O M P A N Y F o u n d e r s o f th e T r a c to r In d u stry 4 7 8 Lawler Street Charles City, Iowa Many of the old HartParrs that plowed the virgin prairies of the Northwest are still in use today. The great grand-daddy of all Trac tors was old Hart-Parr No. 1, built in 1901. They Sell Hart-Parr 30s All Winter A PO W ERFUL yH ■ BUILT jiVj STU R D Y T H R E E -P L O W iiP g U i m V BY TH E FOUNDERS OF TRACTOR KEROSENE * if TIÌA C TO R t 3 H i 1i IN D U STR Y R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 78 B A N K Cost of Paper. It is hardly probable that there will be any noticeable reduction in the cost of paper and bank stationery for some time to come. Paper is perhaps thé only noteworthy com modity in which there is still an actual shortage. The monthly review of the Na tional Bank of the Republic says, in this connection : “ In view of the severe reductions in prices which have been made in many lines, it is beginning to be asked whether liquidation is about completed and whether business can be adjusted on the present basis of values and con fidence restored sufficiently to per mit of extensive forward buying. Considering wholesale prices exexclusively, it is evident that the only important commodities which have resisted the decline, and which are still above their levels of a year ago, are iron and steel, coal, coke, petroleum, cement and paper, all of which in varying degrees owe their price strength to insufficient ca pacity or restricted output in com NORTHWESTERN E Q U IP M E N T January, 1921 BANKER S E C T IO N bination with greatly increased pro duction costs. Paper is perhaps the only noteworthy commodity in which there is still an actual short age. As production overtakes de mand even these exceptions, it is be lieved, must join to some extent in the general movement toward lower levels, unless, indeed, general busi ness activity shall have recovered sufficiently in the meantime to re store the normal volume of pur chasing. Likes the Northwestern Banker. “ Every time I see the Northwest ern Banker it seems to grow larger, better and newsier. If you increase each year in proportion to the in crease which this journal has made during the past six years since we have been in business, you will be setting a pace that will take ten or twelve men to keep up with you in any other competitive magazine.”— A. C. Waller, Treasurer Federal Deposit & Trust Co., Dubuque, Iowa. New Directory and Data Book. Crain’s Market Data Book and Directory of Class, Trade and Tech nical Papers, now on the press, promises to be of unusual interest to advertisers generally and users of trade and technical papers in par ticular. It not only lists all of the business publications of the United States and Canada, giving circula tions, rates, type page sizes, closing dates, etc., but supplies a market analysis of each trade, profession and industry. Thus the reader is given the basic facts of each line in which he may be interested, includ ing its buying power, buying methods, character or requirements, etc. The volume, which is bound in cloth and contains nearly 500 pages, is published by G. D. Crain, Jr., 417 S. Dearborn street, Chicago. The price is $5. Continental and Commercial. The Continental and Commercial National Bank of Chicago shows re sources and liabilities amounting to $438,183,537.08. A BACK TO PRE-WAR PRICES American Check Cancelling Machine No. 19 B ankers H o te l W h e r e a re C o m fo r t A lw a y s a n d S e r v ic e A s s u r e d . Have Your Mail Directed to B r o w n H o te l (Fireproof) Des Moines, Iowa Ernest W . Brown President W m . F. Rick Manager Save $ 2 0 .0 0 on Typewriters S k e tc h o f D ie, O n e -th ir d S ize. Stock Die (Paid & Date) $60. Special Die (with Bank’s A. B. A. Transit Num ber as illustrated above) $65. Prices f. o. b. Chicago. Machines sent anywhere on 30 days free test and trial basis. Mail in your trial order today. Prompt ship ments assured. T H E A M E R IC A N P E R F O R A T O R C O . In c o rp o ra te d 1910. l a r g e s t E x c lu s iv e P e r fo r a tin g M a c h in e M a n u fa c tu r e rs in th e W o r ld . M a in Office an d W o r k s : 6 1 9 -6 2 9 W . J a c k so n B lv d . C H IC A G O We can furnish late model rebuilt Under woods for $80.00 that we absolutely guarantee W ANTED—Agents for our lines OFFICE SPECIALTIES COMPANY Fargo, North Dakota R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER Let himhelp you There is a better way to keep the store records you need In your city there is a representative of The National Cash Register Company. He is a student of business systems. He has been trained to be of service to merchants— to help them solve their problems. Let him show you how you can get the store records you need without working overtime on day books, pass books, ledgers, and memorandums. He will show you the easiest way to get these records. You need them once a year for your Income Tax report. You need the same figures every day to control your business. Wemake cash registers ibr everyline ofbusiness.Priced S75 andup. NATIONAL CASH R E G I S T E R CO. DAYTON, OHIO. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 80 THE NORTHWESTERN BANKER January, 1921 The New Edison The Only Phonograph Which The Ownership of an Edison Is a Mark of Love for Fine Music W N I N G an Edison is more than owning a phonograph. Edison ownership marks one as k n ow in g good music and being satisfied with nothing less. W hen you open the case of the Edison you can know that your guest has classified you with those who appreciate a higher quality of art. O 2&NEW EDISON N o N eedles to C hange— E v en R ecords o f A l l O th er M ak es S ou n d M o r e H u m a n W h en P la yed on the N ew E d ison . T h e only phonograph which recreates music. T he only phonograph which can undergo the pitiless comparison with the human voice. Buy an Edison and be proud of your music. r Come in and let us show you how easy it is to get an Edison on very moderate terms. W e advise placing an early order. HARGER & B U S H , In c. D istribu tors \ v DES MOINES------ IOWA------ SIOUX CITY] R ea d ers ivill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE W H A T CONSTITUTES GOOD SERVICE BY A FINAN CIAL INSTITUTION? (Continued from page 16.) those beneath him in the bank, are we not driven logically to the con clusion that incivility, lack of con sideration and intolerance are a part of the warp and woof of his char acter? It is hard to get away from the reasoning. Moreover, is it not a very essential part of good char acter that one of its component ele ments shall be common sense? “ Without reason none of us can be reasonable, and if we are not rea sonable we cannot be fair to our selves, or to others.” Suppose the case of a bank officer who is engaged, possibly upon some important matter, and suppose that a subordinate approaches him. W e none of us like to be interrupted, but is not life, after all, pretty much made up of interruptions? And is not the same officer the man who absolutely refuses to have a brain storm, or to be thrown off his balance, every time a small matter is brought before him, even if he is busy on a large problem? If he allows himself to become so tem peramental that an employe of a bank dislikes to go to him because he is afraid of the treatment which he knows that he will be likely to re ceive, is not something wrong? The logic is irrefutable. Something is wrong and the wrong thing is in the character of the bank officer. If the official staffs of our large banks will but consider that the attitude of the officer toward the employe will al most inevitably be reflected by the attitude of the employe toward the customer, we shall see in our large banks very much less rudeness toward inferiors. Unless employes are kindly treated by their superior officers they will not go to the superior offi cer. If you will show me a bank where employes do not go to officers with their problems and their troubles, I will show you a bank where the officers are standing in the way of the bank’s progress. Inconsiderateness in the attitude of an officer toward an employe is very frequently more a matter of habit than anything else. It is just as easy in the long run to be kind as it is to be brutal and there is a deal more of satisfaction in it. There is altogether too much anyway of the “ Do this” and “ Do that” on the part of superior officers in some banks. W e shall get more out of our men by keeping them close to us through bonds of mutual affection NORTHWESTERN 81 BANKER Bank Officials, Tellers and Clerks — should wear Swigert-Howard madeto-measure shirts, underwear and neck wear. They all furnish enduring quality at low cost — for they are made of best materials and guaranteed to fit. They are the choice of discriminating people. Let us send samples and measuring blanks without obligation to you. U n d erw ear P a ja m a s DES M O IN ES IOWA High Grade Bank Fixtures J. L. Carlson offers to bankers his many years of experience in the designing and planning of many bank buildings in this territory. With us quality and service have been made the considerations of prime importance. JO H N L . C A R L S O N Manufacturer of High Grade Bank, Store and Office Fixtures. 15 W E S T 3D ST. S IO U X C IT Y , CITG'i TRITY A * Absolute protection and security is afforded by Invincible Safe Deposit Boxes. The patented “Lock Behind the Lock” barricades the door and stops the yeggman, no matter what his methods. Sectional construction makes for flexibility and higher earning power. An installation of 30 Invincible Safe Deposit Boxes yields an average annual cash revenue of 43% on the original investment. For full details, write today to T H E I N V I N C I B L E M E T A L F U R N I T U R E C O ., M A N I T O W O C , W IS . R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IOWA 82 THE and respect than we shall obtain through any such instrumentality as the iron bands of compulsory obedience. Never lose sight of the fact that words of praise for work well done almost always result in more work better done. A just bank officer will make the strongest possible effort to avoid partiality and will steel himself against allowing personal likes and dislikes to weigh too heavily in his recommendations for promotion. Most of us poor, weak humans are creatures of temperament. W e are apt to like people who like us. W e take pleasure in doing things for people whom we care for. The ten dency is always to speak highly of persons whose personal idiosyn crasies fit in with ours. This is human nature. It may be that a man, whose personality does not appeal to us nearly as much as the personality of some competing em ploye, is abstractly just as much en titled to promotion as the man whom we like. Let us try to be ultrafair to the man for whom we personally do not especially care. Of course any bank official whose recommendations for promotion are consciously made with a view to building up a personal machine of his own is beneath contempt. NORTHWESTERN BANKER There is only one consideration which should justify a senior officer in interfering in a matter which a junior officer has under discussion with a customer, and that considera tion is the fact that he is sure that the junior is attending to the busi ness wrongly. If he is sure of that, it is his duty, of course, to interfere; but the matter should always be taken up privately first with the junior and never in the presence of the customer. A final reflection of the attitude of officers toward employes is that all bank officers will do excellently well if they will keep close to their senior employes. A matter has reached a point, we will suppose, where we are ready to turn our customer over to an employe. If we beckon to the employe and say, “ Come here, Jones, this is Mr. Henry Smith,” we shall be proceeding absolutely in the wrong way. Call Jones, but address him as Mr. Jones and, in introducing him to the customer, give his full name and title and in troduce him as an equal to an equal. If we do anything less than this we are creating in the mind of the cus tomer the impression that Jones is an inferior and the seeds of dissatis faction will have been sown in the brain of our client. It is all clear as January, 1921 crystal when we come to think it out, and if bank officers will go apart, each man by himself, and give only a little time each week to the cultivation of an introspective habit, with a view to a scrupulous and punctilious observation of those things which employes have a just right to claim from bank officers, the bank will be a gainer by a whole lot. What is the duty of officers and employes toward the public? If what has been said be adhered to, and if a new process of education shall begin among our bank officers, based upon rational common sense fundamentals, the truth of which every sane man recognizes, the prob lem of how to treat a customer will lose much of its complexity, be cause'no man will treat a customer uncivilly if he has educated him self to a point where he is incap able of incivility. A few of the more common things which have been noticed in banks all over the coun try upon the part of bank officers, and which ought to be rectified, are given below. Insufficient attention is some times given to customers of limited resources. W e all like to look after the wants of the big man. Nothing is more natural. But we should M A S S E Y ’S : THE PIANO AND EDISON CENTER OF IOWA Individualize Your Stationery ■RCHASE-IVERS &POND-MEHLI LYON 6-MEALY K IM B A LL BUSH & LANE EM E R S O N BEHNING SCHAFT BROS W ASHBURN t ANGELUS PLAYERS TO TIBIE COUR WORK SATISFIES TO AN UNUSUAL DEGREE the de mand for individuality in letter heads, drafts and checks. î The Completion of Our Beautiful “ N e w T emple of M usic” We are now showing in our “ New Home,” the largest, finest and most complete display of high grade, world renowned instruments ever assembled in Iowa. It is necessary to visit eight o f the leading piano houses in New York and C hicago to see the “ Forem ost Makes o f the In dustry” shown here for your benefit. Every one a leader. The Largest N E W E D IS O N D1 Dept, in Iowa Call or Write for Catalogue W A L N U T S T R E E T D E S ESTABLISHED 1856 Iowa Lithographing Company DES MOINES TheMASSEYPIANO 8 1 1 CLet us supply you with sam ples.— Write today. M O I N E S Wholesale and Retail— Iowa’s Distributors for the W orld’s Greatest Makers G. H. Ragsdale, President E. G. Ragsdale, Secretary H. B. Ragsdale, Treasurer ‘IO W A 'S L A R G E S T P IA N O H O U S E ” R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTEI W E S T E R N BANKER 83 ■O ■ NOT IC E : We want the public to know that our plows and harrows are N O T the Case plows and harrows made by the J. I. Case Plow Works Co. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ou r advertisers. \ THE 84 NORTHWESTERN BANKER January, 1921 BANK SAFES Three Thousand Banks! SAFE - DEPOSIT VAULT - BOXES - EQUIPMENT Morris Sanford Company S u c c e s s o r More than three thousand banks have placed the modernizing of their interiors in our hands during the past half century. That is far more than any other company has modernized. This experience is the greatest available. to G e o r g e CEDAR RAPIDS A . M - u llin G o . IOWA The Fisher Company plant at Charles City is the largest bank fixture plant in the West. It offers you every modern equipment and facility and insures the ut most in service. The experience accumulated in modern izing three thousand banks, and our great factory facilities, are at your service. Several of the thousands of banks we have modernized are near you. W e will gladly send you a list of them if you care to inspect them and investigate our work and service. Our staff of experts is at your service. A consultation will not place you under the slightest obligation. Write us with today’s mail. Build Up Your Safe Deposit Banking Business with BARSHAL SAFE DEPOSIT BOXES B u ilt in U n it C o n s t r u c tio n to E n a b le Y o u to A d d th e P r o p e r S ize a n d Q u a n tity o f B o x e s as Y o u r R e n t a ls D em an d . F iv e sta n d a r d u n its, u n ifo r m in w id th , h e ig h t an d d ep th , b u ild up v e r t ic a lly an d h o r iz o n t a lly in p e r f e c t a lig n m e n t . H e a v y B e s s e m e r ste e l p la te d o o rs , Y a le & T o w n e c a st b r o n z e g u a r d k e y lo c k s and, s t r o n g c a s e c o n s t r u c t io n m a n ife s t u n u s u a l q u a lity . A t lo w e s t c o s t p e r b o x an in s t a lla tio n o f B a r s h a l “ S e c u r ity ” S a fe D e p o s it B o x e s is a q u ic k p a y in g in v e s tm e n t. S h ip m en t g u a r a n t e e d w it h in 30 d a y s a ft e r o r d e r is r e ce iv e d . T h e re is a B a r s h a l re p r e s e n ta tiv e in y o u r lo c a lity w h o w ill c a ll im m e d ia te ly on re q u e s t. ■fMW H íttn k f i x t u r e J íea cC cfu a rters G h a r le s Q T h e B a r s h a l L in e in c lu d e s B u ilt -t o -O r d e r M eta l F u r n itu r e , S te e l F ilin g E q u ip m e n t, O r n a m e n ta l I r o n an d B r o n z e W o r k . it y , fj/ o w a R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 T HE ■never forget that a man or woman, of the class who wishes to buy a $50 Liberty bond, is entitled to exactly the same respect and cour tesy, to precisely the same careful and polite treatment, as we would give to one of the directors of our bank. I was in a large bank in Boston once, waiting for a senior officer to be disengaged, when my attention was directed to on officer whose desk was near where I sat. A lady was standing by his desk. He signed a certificate of deposit and, stretching out his hand with the certificate therein, called out in a loud tone of voice : “ Mrs. Brown” ! The lady who was Mrs. Brown took it and went away. Now, can any one tell me whether there is any good reason why that officer should not have arisen from his chair ad dressed Mrs. Brown politely, and handed her the certificate with a courteous expression of hope that at some future time the bank might be of some further service to her? Granted that the officer was busy. W e know that bank officers are busy, but, cannot a bank officer be busy, and be a gentleman at the same time? The answer is that he can be and that he must educate himself to be. I was an interested observer upon a certain occasion of an argument NO R T H W E S T E R N BANKE R in a Philadelphia bank between a bank officer and a customer. The customer was a woman and she had a check for $500 and she was not known. The bank officer was coolly polite, tie said he was very sorry but that the bank could not give her the money on the check unless she identified herself. He was right. Of course, the bank could not pay the check when it did not know the per son who presented it. And yet, he was just as wrong as he could be. If he had been properly educated to his duty toward the public as a bank official he would have taken the next step. He would have tried to help that woman to secure an identifica tion. If necessary he would have sent a clerk or messenger with her to someone who did know her and he never would have let go of her until he had put her in the way of securing what she wanted. In this special instance the woman left the bank; and, when she left it, she was its enemy, when, by a little extra care and diplomacy, she might have been turned into a friend. The right kind of gossip between a bank officer and a customer as a rule is a good thing in its proper place, because it cultivates a close personal relationship between the two which is always a valuable asset to a bank; but gossip between a customer and a bank officer, when another customer is waiting to be attended to, is not a good thing. If other people are waiting and de manding attention, the business be tween the officer and a given cus tomer, while it should never be un duly hurried, should be disposed of as quickly as possible; and, by the same token, consultations between an officer and a brother officer, or between an officer and an employe, when customers are waiting at the counter, demanding the attention of an officer, are always injudicious. W e should take care of our cus tomer as quickly as possible. We should take care of him before giv ing our attention to other matters, and let us not be so buried in mat ters of small detail that we give office detail the preference over the wants of our patrons. There should be clerks upon whom mat ters of minor detail should be thrown. It will not do for a bank officer to say that so many matters of detail rest on him that he has in sufficient time to attend to the wants of the public. Delegate to others the authority to look after minor matters; and, when you do delegate authority (say it seven times), dele gate it! Throw it all off upon the subordinate. If he cannot be trusted with responsibility without molestation from you, then put an other man in his place who can BANK SPECIALISTS Engineers Architects Designers Bank Buildings Interiors Complete Equipment Vaults Write for our Beauti T he City National Bank and the Kankakee T rust & Savings Bank and Office Bldg., Kankakee, Illinois fully Illustrated Port folio on Bank Art Showing Our Work. Now under course of construction Vitzthum, Scheitler, Burns 21 East Van Buren Street Chicago, 111. R ea d ers loill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85 THE 86 NORTHWESTERN January, 1921 BANKER / Farmers & Merchants State Savings Bank M A N C H E S T E R , IO W A An accomplishment of beauty, solidity and strength that appeals to all. In case you are located so as not to inconvenience you too much, you should make an ef fort to see this building. If interested in bank work, write us today. THE LYTLE COM PANY J. A. RAVEN, President. SIOUX CITY, IOW A Architects and Engineers of Complete Bank and Office Buildings. R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en loritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE carry that burden. W e cannot serve two masters. W e cannot be an officer, for instance, and be a chief clerk at the same time. The general conclusions, based in many years’ observation are that what is needed in our banks and safe deposit vaults in the way of genuinely “ Good Service” can be brought about by a changed attitude of officers toward each other, a changed attitude of officers toward employes, and a changed attitude of both officers and employes toward the public. BUSINESS OUTLOOK FOR 1921 (Continued from page 13.) by the*community. The banker who does more than this will doubtless experience difficulty, if he has not already done so. One is impressed by the fact that during the time of our greatest stringency there have been many conservative banks that have experienced no real hardship in taking care of their customers who are entitled to credit.” Homer A. Miller, president of the Iowa National Bank, Des Moines, says: “ Answering your inquiry regard ing the business outlook for 1921 I can say I believe, with accuracy, NORTHWESTERN BANKER that most of the banks of Iowa, in cluding our own, are overloaned. Fully 90%, would be my estimate, of the loans of the Iowa banks today that are made to the farmers of our state in our effort to assist the great est, and almost the only industry we have in our state. “ The first four months of the year for the past forty years that I have been in banking in Iowa has been a period of liquidation, the farmers selling their product and paying their banker and he in turn paying the amounts that he had borrowed in helping them carry the load. This year should be no exception, as we have hundreds of millions of the product and the result of the soil. “ The Federal Reserve Bank is going to ask that the Iowa banks re duce their borrowings of them, dur ing this period of January, February, March and April, and there is no question in my mind but that the Iowa farmer has a dee]) sense of re sponsibility for his debts and that he will sell and pay. W e are, for tunately, in the richest agricultural state in the Union, and this year have been blessed with abundant crops of good quality. “ I cannot refrain from adding that T have had much sympathy for the farmers of our state for the past two months, as prices on everything that they have to sell have been cut in two, and that is not the condition with the things that they in turn must buy, but that time, in my mind, is bound to come when he will be able to make his purchases on the same basis that he is now having to make his sales, which condition will surely be in the very near future, so that the dollar that he receives from his product sold will in turn do a full dollar’s duty for purchases. “ There is one thought, however, that this statement, viz., the value of the dollar, will not cover, and that is the debt that we have all been so free to contract, and the lavish expenditures we have made during the war period of inflation and profit making; today the dollar is only going to do about half its work for people who are unfortun ately in this class. W e are all too prone to spend and invest when money is easy forgetting the day of judgment, but that is human nature and today it is too late to preach; however, no amount of preaching during the period of almost crazy extravagance would have been of any benefit.” John W. Wadden, president Sioux First Introduction Best “ Repeat” seller on the market. Only practical device for clerking farm sales regardless of weather con ditions. Single, duplicate or tripli cate copies. Here it is. T R A .D E * m a r k Auction Sale O utfit 100 p r i n t e d K r a f t s a le e n v e l o p e s ; 100 s e c o n d s h e e t s ; 20 h i g h g r a d e p e n c i l c a r b o n ; 10 B ristol B oa rd s; I SP E C IA L S triped W o o d C l i p B o a r d C a p S i z e , wil l n o t w a r p o r e r a c k Patented Sept. 7, 1920 O rder N o w Shipped on Approval LeMars Printing Go. Mason City, Iowa You will use no other after you have seen this. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 87 THE 88 NORTHWESTERN BANKER Falls National Bank, says: “ Liquida stored. W e believe credit will be tion in the Northwest is wholly con considerably easier and that, if the tingent upon the free movement to proper facilities are made for our ex market of the grain and live stock port trade, we can look forward to now held by the farmers, and in a summer and autumn of increased asmuch as very little has been mar business activity.” keted up to this time, no relief has been felt. Since the markets have shown a tendency to move upward, INCREASING FARM PRODUC TION BY ERADICATION producers have shown a tendency OF PESTS. to at least market a part of their holdings with the result that the out (Continued from page 19.) look is better than it has been at ber of coyotes estimated as equal any time during the past six months. ing the above total. The destruc From present indications, a rather tion of these animals involved an ex free movement may be anticipated penditure from all sources during from now on, with the result that the year of approximately $564,300 much substantial liquidation should and effected a saving of live stock come between now and March 1st valued at $6,000,000. The depart and with it will come a resumption ment hunters, operating under the of purchasing on the part of the pub direction of inspectors, make a lic, with the result that business in special feature of taking notoriously general will be strengthened and destructive individual animals, such stabilized. ■ as a wolf recently taken in South M. E. Holderness, vice president Dakota that is reported by stockof the First National Bank, in St. men to have killed not less than $25,Louis, says: “ W e believe that the 000 worth of cattle in the preceding business situation will improve after six or seven years. This animal had the first of the year although the. eluded many sportsmen, ranchers, situation is too complex to expect and local hunters who had made business to be resumed on the scale vain efforts to take him. which prevailed during the most As a means of saving crops and active war period. It will take time forage from damage by prairie dogs, for real normal conditions to be re ground squirrels, a n d p o c k e t B A N ] K C H E C 1 Í C S Must Be Canceled A n Uncanceled C heck is a Potential L ia b ility ••, Effectively canceled ckecks are your customers’ permanent receipts • • • •• • • • ••• • • • • • e • ! • » ••• : • • * •• •• •• •••» •• «• • • • • • • • • • • « . ♦ ••• . • • • * • * • • w • • • • • • • • • • • •• •••• •• • ••• •• •••• • • • • • • • • • •• •• »• • • ••• • •••• • • •• ••• • • • • • • •• ••• • •• • • • ••• A n Acceptable Cancellation M ust Be UNALTERABLE D E F IN IT E - L E G IB L E And Include D A T E NOTE- -NOTE The serious decrease in the num ber of wild fur bearers makes fur farming an industry of immediate importance. The United States has come to be one of the greatest world centers not only for the production of raw furs but also for dressing, dyeing, and manufacturing them. Great industries which involve large amounts of capital and employ thou sands of persons have been built up Any City in Iowa that does not have a first class drive-in Filling Station, please correspond with this office, advising us of local conditions and consumption. This company is made up of Iowans ; men who have been successful in other business enter prises. THE COMMUNITY F O R M E R L Y T H E B . F . C U M M IN S C O . Makers of Punch Hole Marking Machines Since 1887 Cut out and send us this ad and let us send you a machine with Y O U R A .B . A . number—on 30 days trial— this without risk or obligation on your part. gophers, co-operative poisoning cam paigns were organized. Over 34,000,000 acres of farm and range land were treated during the past year to kill off these animals. More than half of this enormous acreage was new work. The development of new lines of industrial production is also import ant, and for some years the depart ment has been engaged in fostering and encouraging the rearing of fur bearing animals under conditions of domestication. It has conducted in vestigations to determine reliable practices and to overcome difficulties involved in handling, housing, and feeding fur-bearing animals reared on fur farms. Specialists are «tudying diseases to which such animals are subject in order to determine means of prevention and cure. Ultimately There W ill Be a Service Station in Every Progress ive Tow n CUM M INS PERFORATOR COMPANY 4 7 4 0 Ravenswood Ave., Chicago January, 1921 SERVICE STATION CO., Inc. 3 0 1 P u t n a m B u ild in g , D a v e n p o r t, Io w a R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER 89 Daylight Hold Up--Bank Employees Boundand Gagged-Locked in Vault. Burglars Blow Bank’s Vault-No Clue. Are Head Lines inMost All Daily Papers. Associated Press Item, Salt Lake City, Utah, Nov. 29, 1920. "The crime wave now prevalent throughout the country will show an increase of 200 per cent," declared William A. Pinkerton, head of a detective agency, who arrived-here from Denver today. We have something new in the electrical equipment. Complete protection against DAYLIGHT HOLD UP and night burglars. REDUCES INSURANCE. We also steel line and electric line vaults. We protect the lives of the personnel of your bank, also the bank's property and valuables, and your patron's valuables, for a MINIMUM price. 2000 banks equipped with Dillon protection. Write us for list of banks where our protections have recently foiled the burglars. DILLON ELECTRICAL-MECHANICAL BURGLAR EQUIPMENTS Factory and General Office DILLON LOCK WORKS Fort Dodge, Iowa T hat N e w Bank— Send us the plans of your new bank and let us advise with you about the heating plant. Our advice and plans are free. The TORRID ZONE Furnace is simple in construction, easy to operate, durable, econom ical in fuel consumption and is riveted gas and smoke tight. We Can Heat Your Home Too Write Us About It “ B u ilt for Service" More than 9 0 ,0 0 0 N o w in Use The Lennox Furnace Co. 200 Lincoln H ighw ay M arsh alltow n, Iow a R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis / 90 THE Better Bank Buildings It will be worth your while to be informed on our up-to-date build ing methods— a system that produces maxi mum efficiency in the d e s i g n , construction and e q u i p m e n t of banks. Better Buildings in Less Tim e at Lower Cost THE W . W . BEACH NORTHWESTERN BANKER and established in this country. The people of the United States spend approximately $ 100 ,000,000 a year for fur garments. Several kinds of wild fur bearers have been successfully domesticated on fur farms. The largest invest ments at present are being made in connection with the rearing of silver and black foxes, and it is here that the greatest profits have been real ized during recent years. The rais ing of fur-bearing animals affords an opportunity to utilize in a profit able way large areas of sandy, forested, or marshy lands not suited to other lines of agricultural pro duction. Cull fish from fish markets and fisheries, offal from slaughter houses, horse meat, and similar prod ucts, which are now largely wasted may be used in large quantities for feed. This fur-farming industry is now well established in some of the Northern states, such as New York, Michigan, and Minnesota. The number of people engaging in it is steadily increasing as is also the amount of money invested. Its de velopment offers bankers and man ufacturers an opportunity to facili tate and encourage growth and pro gress along lines which are sound and profitable. The interest of bankers and manufacturers contrib- January, 1921 utes materially to the establish ment and growth of this phase of animal production. By creating this profitable industry in this country, it will be possible to furnish in creased quantities of raw furs which are necessary for the maintenance of the great fur-manufacturing estab lishments. This increase of pelts will also help to supply the market demand for fur products. Pan-American Holds Meeting. The Pan-American Insurance Company, Des Moines, now in the course of organization, recently held a meeting of its board of directors at which time the company plans and policies for the future were enthusiastically discussed. A num ber of the directors expressed them selves as desiring to commence the writing of business at once. W. C. Ballard, the president, states, how ever, that the Pan-American will stick to its original intention of be coming the largest stock insurance company in the State of Iowa before they begin to write business. The board of directors which al ready is comprised of a number of prominent business and insurance men was further strengthened by the election to a directorship of Mulford L. Ballard of New York. Mr. Ballard is president of the Ballard COM PANY Architects Engineers Builders SIOUX CITY, IOWA Better Bank Buildings W I L L I A M I. H U L L Public Auditor and Systematizer 7 11-712 S n ell B ld g . F O R T D O D G E , IO W A LawnTents, Camping Tents, Awnings Des Moines Tent & Awning Co. P h o n e 1305 »THE SION OF SATISFACTION t D eM O IN [ TOURING TENT i DO Y O U , M R . B A N K E R , K N O W : that we have, right here in stock, a complete line of Vault Doors, Burglar and Fire Proof Safes, Bank Fur niture of all description, Filing Cabinets in Wood or Steel, Deposit Boxes, Loose Leaf Devices and Com mercial and Fancy Stationery. our motto. Over-night service is Let our man call on you and serve you. McNamara Office Supply Co. 505-507-509 Locust St. Des Moines, Iowa R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE & Green Insurance Company operat ing a large general insurance agency covering several states in the East. Mr. Ballard is prominent in national insurance circles and de clared after a thorough examination of the company that he was very en thusiastic over the future success of the Pan-American. Mr. Ballard, in addition to being president of the Ballard & Green Insurance Com pany, is vice-president of the Bal lard, Green, Smith Corporation, director of the Union Security Com pany of Newark, New Jersey and secretary and director of the East Orange Automobile & Machine Company of New York. With the idea in mind of being Iowa’s largest stock insurance com pany this corporation is being organ ized to have resources of four million dollars, one million of which will be capital, and three million of which will be surplus. This will place the company upon a sound basis and make it possible for them to write a big volume of insurance right from the start. With Mr. Bal lard, a well known, highly esteemed insurance man, as president, every indication would point toward a well deserved success for the Pan-Ameri can. NORTHWESTERN BANKER For Bankers in Towns of 20,000 The Welfare Loan Societies now op erating under state supervision in many cities of 20,000 population and upwards are a demonstrated success. These societies are a valuable auxil iary to the average commercial bank. We shall be glad to furnish any in formation on request. Hawkins Mortgage Co. Hawkins Building PORTLAND, INDIANA Oklahoma Farm Mortgages The Unprecedented Agricultural Prosperity now prevailing in that state makes them un usually attractive to investors insisting on the highest degree of safety. Oklahoma’s record-breaking crop for 1919 represents the largest agricultural gain made by any state in the Union. The 1920 crop was even better. Covington Brothers Farm Loan Company has sold Oklahoma Farm Mortgages for a number of years. W e know th*e country thoroughly and also the standing and limitations of the borrower. W e never loan to exceed 40% of a conservative valuation and the majority of our loans are based on 30%, or less, of the cash value of the land. W e net investors from 6 to 7% per annum. Our company specializes in farm mortgages. W e have made an exhaustive study of the farm mortgage problem and have been able to prove to our investors the special advantage of our service. During these times the conservative investor should consider carefully whether he can afford the speculative risk in lieu of a fixed dependable income bearing security. Covington Brothers Farm Mortgages are closed with our own funds and have behind them, character, prestige, sound judgment and wide knowledge of local conditions. If you are looking for a fixed depend able income it will pay you to write us. Covington Brothers Farm Loan Company M ANGUM , OKLAHOMA R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 91 January, 1921 92 W E OFFER immediate credit for B /L items representing outgoing shipments (the most convenient way of borrowing money). We specialize in this business and make direct col lection promptly on all receiv ing points at m inim um cost. Information regarding our ser vice will gladly be furnished by letter or call. The New York Correspondent of Over 4000 Banks THEBILLOF LADING BANK OF CHICAGO Y our B a n k Is reflected by the sta tionery you use. We specialize in printed and engraved letter heads, statem ent folders and booklets. S ervice, Q uality and R ight P rices A lw a y s Printing - Binding - Loose Leaf Devices Designing - Engraving - Embossing THE HOMESTEAD COMPANY N IN E TE E N TH AN D GRAND DES MOINES, IOWA R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en minting to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January, 1921 THE NORTHWESTERN BANKER 93 Plan Foreign Trade Corporation FTER a two-day conference of bankers and financiers under the auspices of the A. B. A. at Chicago to consider the problem of financing foreign trade, it was de cided to form a corporation to facil itate foreign trade under the name of “ Foreign Trade Financing Cor poration.” The Financing body which will have a potential credit of one billion dollars under the provis ions of the Edge Bill, will start an active campaign early in 1921 to the end that American produce will have a worthy market in foreign countries. Over 250 delegates attended the conference which was presided over by President John S. Drum, of the A. B. A. In his welcoming address, President Drum urged the need of a proper market for every American farmer and for all produce not re quired for domestic consumption. Herbert Hoover, former U. S. Food Administrator, sounded the keynote of the convention when he declared at the opening session that the eco nomic ills of this country can only be cured by the establishment of credit abroad. A The conference was addressed by A. C. Bedford, chairman of the Stan dard Oil Company board of direc tors ; William C. Redfield, formerly secretary of commerce; Joseph H. Defrees, president of the United States Chamber of Commerce; John McHugh, vice president of the Mechanics and Metals Bank, New York; Joseph B. Nobel, president of the Chicago Chamber of Commerce ; Herbert Hoover a n d President Drum. It was unanimously resolved that “ It is the sense of this meeting that a foreign trade financing corporation^ with an organized capital of $ 100 ,000,000 be organized at once on the general lines approved by the Amer ican Bankers Association and com mittees appointed by the Chamber of Commerce of the United States, the National Foreign Trade Council, the American Manufacturers’ Ex port Association and the American Exporters’ and Importers’ Associa tion.” A committee was appointed to take steps toward organizing a cor poration with a capital of $ 100 ,000 .000 , for the purpose of financing foreign trade. Subscriptions for this stock are to be taken with pro vision for such surplus as may be •deemed appropriate. John McHugh, vice president of the Mechanics and Metals, New York City, is chair man of the permanent committee. Other members a r e : Herbert Hoover, Paul M. Warburg, John S. Drum, James B. Fo'rgan, F. O. Watts, Lewis E. Pierson, Charles H. Sabin, Arthur Reynolds, J. R. Howard, Thomas E. Wilson, Fred I. Kent, J. G. Gulbertson, Levi L. Rue, Phillip Stockton, Oscar Wells, Julius H. Barnes, A. C. Bedford, Herbert Myrick, Alexander Leg'ge, Joseph H. Defrees, John S. Law rence, E. M. Herr, Roy D. Chapin, John J. Raskob, Charles H. Hincsh, Peter W . Goebel, Thomas B. Mc Adams. John Sherwin and George Ed Smith. The first offer of a subscription came from E. N. Hurley, formerly head of the Emergency Fleet Cor poration. He was authorized by the Illinois Manufacturers’ Association to underwrite $500,000 of the cor poration’s capital, with an additional $500,000 if necessary. For Bankers and Their Wants This department of T H E N O R T H W E S T E R N B A N K E R is to assist SUBSCRIBERS in obtaining goods or service hard to find. It is free. Use it. ASK US, as we can tell you where to buy anything you need in your bank or for your bank. T E L L US, as your “want” will be published under the above heading free of charge. In answering classified advertisements which have key numbers please enclose a two-cent stamp. This is used to forward your letter. W ant Position in small bank as assist ant cashier. Have had three years’ ex perience and know general banking work, including bookkeeping and work in bond department. References given. Address No. 2454, The Northwestern Banker.— 12-1-2-3. Position Wanted as cashier of country bank. Can invest or will buy controlling interest. Will also consider position as assistant cashier in a city or large country bank. Over 8 years’ experience as cashier. Address No. 2460, The Northwestern Banker.-—!. Position Wanted as bookkeeper or as sistant cashier in country bank by young man with three years’ experience in both city and country banking. Excellent ref erences. Address No. 2450, The North western Banker.— 12-1-2. Position Wanted as cashier or assistant cashier in small country bank. Prefer German locality. Can speak Holland and German languages as well as English. Forty-one years old and with eight years’ experience. Address No. 2456, The North western Banker.— 1. For Sale— Only bank in town of 300 in central Iowa. Capitalization $10,000. Splendid business proposition in fine farming community. Good insurance and real estate line in connection. Excellent opportunity for young banker. Address No. 2457, The Northwestern Bankers—1. Position Wanted as cashier of country bank in Iowa. Twenty-seven years of age and married. Four years’ assistant cashier of country bank, one year teller in downtown Chicago bank. Must be permanent. Address No. 2458, The Northwestern Banker.— 1. Position Wanted as assistant cashier or teller by unmarried man twenty-six years of age. Has had five years’ bank ing experience. Employed at present but desire change. Can invest. Best of references. Address No. 2459, The North western Banker.— 1. Position Wanted as cashier of country bank by married man 33 years old. Eight years’ country bank experience. Ref erences given. Address No. 2452, The Northwestern Banker.— 12-1. Position Wanted in bank not less than half million deposits. Employed at present in bank but wish to make change. Can give references. Address No. 2462, The Northwestern Banker.— 1. Position Wanted by young lady in bank. Two years’ experience. Well educated, honest and reliable. Can commence January 1. Address No. 2461, The North western Banker.— 1. B A N K P O S IT IO N S If you want a bank posi tion or need experienced bank help, write The C harles E. W alters Com pany 1422-30 First Nat’ l Bank Bldg. OMAHA - N E B R A SK A R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 94 NORTHWESTERN INSURANCE January, 1921 BANKER S E C T IO N The Art of Selling Service Banker salesman of life insurance should not minimize the element of thinking in salesmanship By W . G. Marvin Head of the Insurance Department. National City Bank, New York FTER all, most of us are sales be that saying that “ every boy may men, even though the tech be president” or that semi-slander nical background of our selling ous phrase that used to be repeated may be different, the same general on the college campus about grad broad principles rule our actions. We uation time to the nervous prospec must overcome the initial prejudices tive graduate : “ Well, if you can’t get of the prospect; we must disarm a job pretty soon, you can always sell his suspicion and imbue him with life insurance.” The days when the the willingness and, if possible, with prospective salesman studied ora the desire of hearing our story ; and tory and rhetoric books for the key then must convince him by the merit to the science of salesmanship are of our argument that we can serve gone. Ability for proper expression him in a way which will advance is still a most valuable attribute, but his own interests. Perhaps, after the science of salesmanship itself all, there is some advantage in at runs much deeper than that. It finds tacking the problem of selling ser its basis in the ability to form a vice from the standpoint of the so logical sequence of ideas ; in the abil licited and not from the standpoint ity to properly express those ideas ; in the power to grasp the salient psy of the solicitor. As late as twenty-five or thirty chological features of any given situ years ago, salesmanship was* consid ation ; in the possession of a good ered an art which one had to be sense of values ; in the power to so born to to succeed in. “ Poeta nas- know human nature that a man’s ob citur non fit”— poets are born, not jections can be offset in advance by made— was the old saying of the the logic and opportuneness of your Latins; and the paraphrase that argument. You readers represent the sub salesmen are born and not made be came ingrained into the popular stantial professional element in the imagination that it has taken the science of life insurance salesman vast conflicting evidence furnished ship. It is your business— the work by the thousands of highly trained you love, study and believe in. You salesmen and sales executives, who do not look upon it as a vehicle for are now furnishing the life-blood for the self-profiting capitalization of the most successful American in friendship, as a mere avocation. You dustries, to refute that cryptic mis look upon it as an opportunity to conception. Indeed, no more inac make your living, and at the same curate half truth ever crept into our time to keep friends with yourself common speech and belief, unless it because of your conviction that you A N ew D o u b le I n d e m n it y are engaged in a calling which has in the past conferred great benefits upon the human race, and will in the future, if your work is success ful, enable a far greater proportion of the people of this nation to en joy the benefits of this dual method of saving and protection. The acid test of your success, then, is not merely in the policies which you have sold, or the money which you have made, but rather in the degree to which you have achieved your as piration to educate both the policy holders and those who are not, re garding the yeal functions of life in surance, and the intimate place which life insurance should fill as a factor in their own human equa tion. You can only do this by solv ing their own peculiarly personal, financial and family problems by selling your service to them in order that they may overcome these prob lems and obstacles. Too many life insurance salesmen unconsciously minimize the element of thinking in salesmanship. As a result, they expect to learn certain arguments by memory and then to use these arguments upon the pros pective purchaser. When they do use such arguments, they are sur prised at the lack of response by the prospect and at the ultimate failure of their effort. Although the argu ments sound logical enough, yet they do not work in actual practice. a n d T o t a l D is a b ilit y P o lic ie s We have just placed on the market a policy that pays double the face amount of the policy in event of accidental death and monthly indemnity in event of total disability. Part Time and Full Time Representatives Are Needed by Us. For Full Particulars Write G u a r a n t y L ife In su ra n c e C o m p a n y L. J. Dougherty, Secy, and Gen’l Mgr. Davenport, Iowa R ea d ers w ill c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE January, 1921 NORTHWESTERN IOWA NATIONAL FIRE INS. CO. 1018-1024 V a lle y N a tio n a l B a n k B ld g . P A R L E Y L . M S . V A N 2 n d C E C . M . S P E N C E R , P r e s . S e c r e ta r y , V ic e Secured Through Policies Issued by the P r e s id e n t S H E L D O N , V ic e C . I N E R , Complete Protection to Banks Against BURGLARS AND BANDITS DES MOINES, IO W A F . BANKER F R A N K P . P r e s. F L Y N N , T r e a s u r e r C A P IT A L ONE M ILLIO N D O LLAR S PO LICY HOLDERS W ill Patronize an IO W A Company Guaranteed by I O W A Capital Managed by I O W A Men B U R G LA R Y INSURANCE Covering Money and Securities against loss through Burglary and Hold-up. DEPOSITORY BONDS Covering all Public Deposits. I O W A t e c t in g B A N K E R S I O W A R e c o g n iz e C R E D I T w it h th e I O A d v a n t a g e W A o f P r o I N S U R A N C E R e lia b le A g e n ts W a n t e d in E v e r y C ity in I o w a . W r i t e to th e C o m p a n y FID ELITY BONDS Giving full protection against loss through misappro priation of funds by officers or employees. Direct Your Local Agent to Place Your Policy or Bond With This Company. Are You Thinking ot Building a Bigger Business ior Yourselt? II So, Here Is Your Opportunity The MISSOURI STATE LIFE INSURANCE COMPANY, of St. Louis, Missouri, is seeking connection with high grade men for General Agencies in Northern and West ern States. The Company is not looking for men of only average ability— but men of pronounced capability in developing productive agencies. FA CTS: O v e r $ 2 6 0 ,0 0 0 ,0 0 0 o f Insurance in Force in its 2 8 th year. Issues both participating and non-participating insur ance— non-participating policies participating at end of premium-paying period. Policies embodying all the rich up-to-date features of life insurance. Operating in 88 States and Territory of Hawaii. Profitable agency contracts for the present and future. It is not often such desirable territory for as large a company is available. W e invite your inquiry. Missouri State Lite Insurance Co. Your Neighbor Is Your Friend! The Lion, of Omaha, writes every kind of bond and every kind of protection against the results of casualty. The Lion is not an experiment,— our Company is an acknowledged success. Iowa treats us very well in volume of business, but we want more business. In Nebraska, ninety-seven per cent of the banks send us business,—we ex tend as cordial an invitation to the banks of Iowa. Write me a letter, today. E. R. GURNEY, President. We don’t want much—just the Lion’s share. M. E. SINGLETON, President The Lion Bonding & Surety Co. Home Office: St. Louis, Missouri OMAHA R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 95 THE 96 NORTHWESTERN American Bonding and Casualty Company S io u x C it y , BANKER January, 1921 Now Is the Time and You Are the Man I o w a I worked in a bank myself twenty-five years ago, before a bank clerk was supposed to be an animated adding machine. I earned as good a salary as the average bank clerk gets today and there was no talk about H . C. L. in those days. Nevertheless, I used to make money selling accident insurau.ee on the side. H O M E O F F IC E : S I O U X C I T Y , This is the best company for you to represent for I O W A many reasons, and I don’t care whether you are in G u s A . E lb o w , P r e sid e n t a big city bank or the smallest country bank, I can show you how to make some extra money, just as IOWA’S FIRST MULTIPLE UNE INSURANCE COMPANY I have shown hundreds of other bankers. W rite me and see if I can’t. E. C. B U D L O N G , Vice President Assets M arch 3 1 ,1 9 1 9 - - - - $1,422,899.91 Bankers A ccident C o m p a n y D E S M O IN E S $800,000 in approved securities on deposit with Iowa I n surance Department for protection of Policy-holders. ’ “ You can bank on the Bankers jflo / m MUTUAL 4 L FARM ERS’ It is th e a s it d o e s T h e u n d e r th e o f S to c k th e la r g e r c a p ita l In s u r a n c e s m a ll b r e e d e r C o m p a n y a s g o o d a in d e a l b r e e d e r . L iv e c o n s e r v a tiv e S to c k In s u r a n c e m a n a g e m e n t. a n d s u r p lu s It C o m p a n y h a s b e h in d it th e o f is It is a n T h e o f c o m p a n y , th e c o m p a n y , c o n te s t th e m a n a g e d p a tr o n a g e in its c la im o f e n tir e o f a b y Io w a n e v e r m e n a n d L in e H A R R Y S. H A SK IN S, G E N E R A L 701-703 Hippee Building D E S M O IN ES, IOWA In s u r a n c e fo r L a r g e s t D E S AGENT h a s h a d : o l d L.I CEDAR RAPIDS LIFE INSURANCE < p o lic y h o ld e r . F A R M E R S L IV E STOGK IN S U R A N C E C O M P A N Y O ld ompany w e s t Io w a n s . h is to r y , C M ASSACHUSETTS THERE ARE THREE REASONS W H I THE IOWA BANKER SHOULD SELECT THE JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY AS THE LOGICAL LIFE INSUR ANCE CONNECTION I. Because THE JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY stands for RELIABILITY. It was organized in 1862— “ THE CIVIL W AR PERIOD.” It is one of the oldest, largest and strongest Life Insurance Companies in the United States. II. Because the DES MOINES AGENCY of the JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY means SERVICE for its BANKER AGENTS. We are as near you as your telephone. Our efficient representatives give you their personal assistance. Our office force co-operates with all banker agents at every opportunity. III. Becuase the JOHN HANCOCK MUTUAL LIFE INSURANCE COMPANY inspires confidence in ALL BANKER AGENTS. Thru years of experience in the BANKER AGENCY SYSTEM, the Company has grown to understand the banker’s situation— his needs and his responsibili ties. Therefore, a pleasant business relationship results in all connections with the Company. If you are interested in an Agency connection, do not hesitate to write us at once concerning our BANKER AGENCY PROPOSITION. t h e Io w a su ra n ce la r g e s t a n y c o m p a n y . d e s e r v in g to L iv e o ffe r s F a r m e r s a m o u n t e rn o n ly th a t In OF BO STON Reasons W h y You Should Represent the A m e r ic a if e in H o g s , th e M O I N E S , H o r s e s W e s t I O W A a n d C a ttle State Agencies Open in Three W estern States. A Good chance for Bankers w ith A b ility of Management C.J3.Rabbins. J?]~es CJS. SuaJbo&a, HOME O F F IC E : C E D A R R ea d ers ivill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R ivhen w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S*3cy R A R I D S , IO W A J a n u a r y , 1921 T H E T h e r e is n o n e c e s s i t y f o r m e to t r e a t th e f o r m a l p a r t s o f s a l e s m a n sh ip . Y o u w h o h a v e s t u d i e d the f u n d a m e n t a l s o f th is s c i e n c e k n o w that the a ca d e m ica lly m in d e d have d i v i d e d a sa le i n t o t h r e e p a r t s : th e a p p r o a c h , t h e d e m o n s t r a t i o n a n d th e c l o s i n g , a n d h a v e a n a l y z e d a sale as c o n s i s t i n g o f a s e q u e n c e o f s te p s , such a s : (1 ) C rea tion o f a tt e n t io n ; (2) In te re st; (3 ) D e s ir e ; (4 ) D e te r m in a tion ; (5 ) D ecision . O ne can n o t s t o p w i t h h is r e f l e c t i v e a n d a n a ly t ic a l s t u d y o f s a l e s m a n s h i p b y m e re ly lea rn in g the lo g ic o f sales m a n s h i p as t o l d in th e b o o k s . He m u st create a grea t b o d y o f c o m p o s i t e f a c t s in h is o w n m i n d , w h i c h h e d r a w s f r o m t h e t y p e o f p e o p l e he solicits, the ch a ra cter o f the c o m m o d i t y w h i c h h e is t r y i n g t o sell, etc., a n d t h e n m u s t g i v e t o e a c h s te p in t h e s a le a n d t o e a c h m e t h o d o f solicitation th e p ecu lia r w eigh t w h i c h it w i l l c a r r y w h e n c o n s i d e r e d in t h e l i g h t o f th is b o d y o f f a c t s a n d in t h e l i g h t o f h is p a s t e x p e r i e n c e . H e m u st have a g o o d sense of v a lu e s . It seem s to m e that the h ardest ta s k o f t h e life i n s u r a n c e s a le s m a n , a n d p e r h a p s h is m o s t i m p o r t a n t s t e p in th e sa le, is t o m a k e a p r o p e r a p p r o a c h t o th e p r o s p e c t i v e p u r c h a s e r . H e c a n g e t th is a p p r o a c h l a r g e l y t h r o u g h b e c o m i n g a d e p t at o f f e r i n g s o m e p ecu lia rly p erson al service to his p r o s p e c t s . H i s first t a s k in m a k i n g an a p p r o a c h , it s e e m s t o m e, is t o d i s a r m t h e s u s p i c i o n , p r e j u d i c e s a n d o t h e r m e n t a l b a r r i e r s set u p b y t h e p r o s p e c t i v e p u r c h a s e r th e m o m e n t th a t li fe i n s u r a n c e is m e n t i o n e d t o h im . M a n y o f t h e s e p r e j u d i c e s a re h a n g - o v e r s f r o m th e u n s k il le d d e m o n s t r a t i o n s o f p r e v i o u s solicitors. A man w h o m ay k n ow n o t h i n g c o n c e r n i n g t h e real p l a c e w h i c h life i n s u r a n c e s h o u l d fill in his li fe w i l l b o a s t o f h is e x p e r i e n c e in life i n s u r a n c e a n d w i l l s a y th a t h e has g iv e n the p r o b le m g r e a t th o u g h t a n d th a t h e h a s p l e n t y o f i n s u r a n c e N O R T H W E S T E R N Experience B A N K E R 97 Facilities Service Em ,is & Holland Company DES MOINES, IO W A General Agents for the State of Iowa Northwestern Fire and Marine Insurance Company Minneapolis Fire & Marine Insurance Company Detroit Fire & Marine Insurance Company Cleveland National Fire Insurance Company Federal Insurance Company of New Jersey Employers Indemnity Corporation Capital Live Stock Company Everything but Life Insurance A G E N T S: Transact your insurance business with us and get it all in one statement. Saves bookkeeping. FRANS NELSON, President GEO. I. PARKER, Vice President There’s a Reason— why bankers like to sell our policies. Our policies pay for par tial and total disability as long as applicant is alive, and. face of policy at death. This makes our policies easy to sell. Write for contract. G ood opportunities for agents. COMMONWEALTH LIFE INSURANCE CO. F. J. UEHLING, Secretary OMAHA, NEBRASKA R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T H E 98 N O R T H W E S T E R N B A N K E R GEORGE J. DELM EGE, President. F . C. W A T E R B U R Y , V ice President HOMER A. M ILLER, V ice President. SIMON CASADY, T reasurer. J a n u a r y , 1921 TH EO. F. G R E FE , S ecretary. A. H. WATSON, A ssistant Secretary CHAS. O. GOODWIN, M anager A u to Dept. H ENRY & HENRY, C ounsellors “ T h e O ld L in e ” Bankers Automobile Insurance Company LINCOLN, N E B R A S K A A ssets over $ 5 5 0 ,0 0 0 .0 0 Surplus to Policyholders over $ 4 2 2 ,5 0 0 .0 0 Exclusively Automobile Insurance in Western Terri tory to Meet Western Conditions. Writes both one and three year term Policies, cover ing Fire, Theft, Tornado, Collision, Property Damage and Public Liability. Our extra special rate on farming farmers' cars is the biggest business-getter in the his tory of Automobile Insurance. Write for full partic ulars. Standard Forms of Policies Desirable Agents wanted in the following States: Ne braska, Kansas, Texas, Iowa, South Dakota, Colorado, Minnesota, Washington, Oregon, Alabama, Louisiana, Pennsylvania and Tennessee. CHARACTER STRENGTH SERVICE NATIONAL FIDELITY LIFE $1,091,934.05 500,000.00 305.934.07 805.934.07 909,700.00 Total Assets.................. Cash C a p ita l.................. Net Surplus.................... Surplus to Policyholders. Loans on Iowa Farm s ... A H O M E Company, owned by H O M E people, managed by experienced and conservative underwriters and able financiers. A C E N T R A L -W E S T E R N C O M P A N Y FO R W ES TER N PEO PLE. Farmers Automobile Insurance Company STOCK COMPANY Organized Without Promotion Expense Home Office FACTS:— C EN TRAL- Sioux City, Iowa 1. Full time salesmen working WITH NATIONAL FIDELITY and using its co-operative program are making money, GOOD money. 2. NATIONAL FIDELITY salesmen are happy and contented; they receive cordial support, quick appreciation and big-hearted understanding from their Home Office associates. 3. In SERVICE that really serves, in contracts that give modern, complete coverage and in a com pany RECORD that is full of pride and satisfaction, the men representing NATIONAL FIDELITY find their insurance ideals splendidly realized. MONEY MAKING agency opportunities in Iowa, Nebraska, South Dakota, Oklahoma and Texas. Be HAPPY and PROSPEROUS with a Company that is both HUMAN and SUCCESSFUL. National Fidelity Lite Home Office, Sioux City, U. S. A. O u r S p ecia lty is T e r m In su rance for F arm ers' A u tom ob iles. S im plified R a te S ch e d u le T erm R a t e s at a G l a n c e W e a re e s p e c i a l l y i n t e r e s t e d in o b t a i n i n g the s e r v i c e s o f liv e b a n k e r s t o r e p r e s e n t us in I O W A a n d S O U T H D A K O T A C. S. RENSHAW President N. J. HVISTENDAHL Secretary-Manager RALPH H. RICE, President R ea d ers will c o n fe r a fa v o r b y m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y , 1921 T H E f o r h is o w n n e e d s , etc. M a n h a s n o t y et d ev elop ed a m eth od o f progress. H e d r a w s c o n c l u s i o n s f r o m li m it e d and u n c o n tr o lle d o b s e r v a tio n s and ta k e s m u c h p r i d e in w h a t s o - c a l l e d e x p e r i e n c e h a s t a u g h t h im . The c o m p l a c e n c y o f th e s o - c a l l e d “ s e lf m a d e m e n ” in th e ir e x p e r i e n c e is w e l l known. T h e y h a v e c e r t a i n l y ta k e n a h e a v y r e s p o n s i b i l i t y f r o m th e ir t e a c h e r s a n d f r o m th e A l m i g h t y w i t h th e ir b o a s t o f b e i n g s e l f - m a d e . P erson a l p referen ce and e m otion a l p r e f e r e n c e p l a y a l e a d i n g p a r t in th e p r o d u c t o f e x p e r i e n c e . M e n are still m u c h lik e t h o s e o f o l d w h o r e f u s e d to lo o k th r o u g h G a lile o ’s te le s co p e at th e s a t e llit e s o f J u p i t e r b e c a u s e , as t h e y sa id , th e s a t e llit e s w e r e n o t th e r e , b u t , if- t h e y l o o k e d , th e d e v il w o u l d m a k e t h e m see t h e m . The s a m e s p ir it m o v e s th e o c c a s i o n a l b ig o te d and u nreasonable prospect. T h e o n ly su ccessfu l m e th o d fo r g e t t i n g his final a t t e n t i o n t o a d e m o n s t r a t io n th a t I k n o w o f is b y a p e r s is te n t a n d i n t e l li g e n t , b u t i n o f f e n s iv e, r e p e t i t io n . M r . P h i ll ip s , in h is a b le w o r k o n “ E ffective S p e a k in g ,” p oin ts out th a t in th e a v e r a g e b u s i n e s s o r sa les ta lk t h e c e n t r a l id ea w h i c h o n e is seek in g to c o n v e y , can be su p p orted b y t h e s p e a k e r in f o u r w a y s — b y r e s t a t e m e n t a n d r e it e r a t io n , g e n e r a l il N O R T H W E S T E R N B A N K E R lu s t r a t io n , specific in s t a n c e , and t e s t i m o n y . It s e e m s t o m e th a t th e a v e r a g e life in s u r a n c e s a le s m a n p u t s t o o m u c h s tr e s s o n s p e c if ic in s t a n c e a n d t e s t i m o n y in his a t t e m p t to c o n v i n c e a p r o s p e c t th at he h a s s o m e t h i n g w h i c h th e p r o s p e c t d e s ir e s , a n d n o t e n o u g h s tr e s s o n th e o t h e r t w o m e th o d s, p a rticu la rly u p o n re s t a t e m e n t . T h e a v e r a g e m a n is n o t as s u s c e p t i b l e t o th e p i l i n g u p o f s p e c if ic in s t a n c e s , m a n y o f w h i c h a re o u t o f lin e w i t h his o w n e x p e r i e n c e , as h e is t o r e p e t i t io n . R e p e t i t i o n fix es m e m o r y ; e x p e r i e n c e s h o w s this. If w e w ish to r e m e m b e r a n a m e , w e r e p e a t it. In v estiga tion m a d e b y t h e t w o G e r m a n s c ie n t i s t s , H e rm a n E b b in g h a u s and O t to L ip m ann, and v a rio u s oth er in v e stig a t o r s , h a s d e f i n i t e ly d e t e r m i n e d th a t a n u m b e r o f r e p e t i t i o n s , c o m i n g at in t e r v a l s , w i l l o f t e n overcom e a m a n ’ s in itia l o b j e c t i o n . I h a v e f o u n d th e s a m e t h i n g to b e t r u e in m y o w n e x p e r i e n c e . A s h e a d o f th e in s u r a n c e d e p a r t m e n t o f the N a tio n a l C ity B a n k o f N e w Y o r k , I h ave often fo u n d a b ro k e r solicitin g us f o r b u s i n e s s w h o m I w a s f o r c e d t o tu r n d o w n , b u t th e n w h o b y in t e l l i g e n t r e p e t i t i o n o f th e o f f e r i n g s o f s e r v i c e h a s fin a lly c a r v e d o u t a p l a c e f o r h i m s e l f . T h i s is n o t tru e, h o w e v e r , o f t h o s e in s u r a n c e s o l i c i 99 tors w h o m erely bo th e r y o u w ith o u t o f f e r i n g y o u s o m e t h i n g d e fin ite in th e w a y o f s e r v ic e . T h e s e m e n b e c o m e s o o f f e n s i v e th a t I w o u l d n o t g iv e th em bu sin ess u nd er a n y cir cum stances. E b b in g h a u s and N e u mann have con clu siv ely dem on strated b y ex h a u stiv e in v e stig a tio n th a t c e r t a i n p r e j u d i c e s , w h i c h are ba sed on past e x p e rie n ce or belief c a n b e e a s ie r w i p e d o u t b y i n o f f e n s iv e s u g g e s t i o n m a d e at r e p e a t e d i n te r v a l s , th a n if o n e w o u l d a t t e m p t t o fo r c e a co n tra ry b elief u p o n th e-su b j e c t s d u r i n g o n e p r o l o n g e d in t e r view . Advocates New Insurance Law. A t th e n e x t s e s s i o n o f th e I o w a S t a t e L e g i s l a t u r e , A . C. S a v a g e , sta t e in s u r a n c e c o m m i s s i o n e r , w i ll p r o p o s e a b ill t o i n c l u d e s ta t e c o n t r o l o v e r fire in s u r a n c e r a tes, r a t i n g b u r e a u s , sta t e s u p e r v i s i o n o f w o r k m e n ’ s c o m p e n s a t i o n r a tes, t h e p r e v e n t i o n o f p r o m o t i o n o f in s u r a n c e c o m p a n i e s w i t h o u t th e c o n s e n t o f the sta t e a n d th e r e g u l a t i o n o f s u r e t y com p a n ies. M r . S a v a g e b e l i e v e s th a t if th e sta t e is t o h a v e s u p e r v i s i o n o v e r th e i n s u r a n c e c o m p a n y a f t e r its f o r m a t io n , it s h o u l d l i k e w i s e o v e r s e e its organ ization. child’s Endowment IffiTElIi Example— Age 5 ^ « O IN E S .^ S You ;AfOINES,V The Company D e p o sit $39.19 tw en ty tim e s T o ta l D e p o s it____________________ $783.80 C redits you $50 for each d ep osit T o ta l C ash C re d it________________$1,000.00 W h e n a boy or girl is 25 years of age C o m p a n y w ill pay $1,000.00 cash OR $691.00 cash and issue paid up p a rticip a tin g p olicy for $1,000.00 OR Issue paid u p p a rticip atin g p olicy for $3,200.00 Originated and Introduced by More than 300 Iowa Banks are reco m m ending ^Child’s Endowment” Write for “ Bank Agency” R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 100 NORTHWESTERN Wanted---A General Agent January 1921 BANKER IOWA STATE INSURANCE CO. (miitdad KEOKUK, IO W A Insures against Fire, Lightning and Wind Organized 1855 G. C. Tucker, Secretary W m. Logan, President IN E V E R Y CO U N TY IN IO W A Men without insurance experience, but who have been successful in other lines, will be con sidered for these positions and will be thor oughly trained and instructed. Ambitious men are offered opportunities not available with older companies. This company has the larg est paid-up capital of all life companies organ ized under the Iowa laws. Write to Home Office Des Moines Life and Annuity Company Register-Tribune Bldg. Des Moines, Iowa YOU Know, Mr. Banker, Development Means So Much Growth alone signifies but little. Many a company that will not “ measure up” can furnish an accurate array of asset figures satisfying to some. But you know the company which renders service— the company which meets with your whole-hearted ap proval now and later, is the one that has studied its problems and solved them; that has considered the “other fellow’s” angle as well as its own and “tuned” them in perfect harmony—in short, the company that has developed —not merely “grown up.” Our strength comes not from our asset progress alone —although that has been extraordinary—but from a continuous improvement in our proficiency and efficiency in giving the highest grade of service— th at’s develop ment. GIVE YOUR PATRONS THAT WHICH YOU CAN FEEL IS GOOD Great Western A ccid en t Insurance Com pany DES MOINES - - IOWA Io w a ’s L ead in g L ia b ility Insurance Com pany Iow a M u tu al Liability Insurance C om p an y CEDAR R A P ID S, IO W A A u to m o b ile P u b lic L ia b ilit y (P e r s o n a l In ju r ie s ) A u to m o b ile P ro p e rty D am age L ia b ilit y an d C o llisio n W o r k m e n 's C o m p e n s a tio n L ia b ility G e n e ra l, P u b lic, T e a m s and E le v a to r L ia b ility In su ra n c e L ow est R ates S ervice B est Io w a ’s L eading A u tom obile In surance Company Iowa Automobile Mutual Insurance Company CEDAR R APIDS, IO W A A u to m o b ile F ire , L ig h tn in g , T h e ft , T o rn a d o and C o llisio n In su ra n c e B r o a d e s t F u ll F lo a te r P o lic ie s L o w e s t R a te s , S erv ice B e st A g e n t s w a n te d in Io w a , M in n e so ta , N e b r a s k a and I l l i n ois. A d d r e s s in q u irie s Insurance B ld g., 512 Second A ve. E ast Cedar B anids, Iow a R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y , 1921 T H E N O R T H W E S T E R N B A N K E R High Court Orders Payment in Johnson Suicide Case A v e r y in terestin g and im p o rta n t d ecision has ju st been h and ed d o w n b y th e S u p r e m e C o u r t o f th e U n i t e d S t a t e s in th e c a s e o f I s a b e l H . J o h n s o n v s . th e N o r t h w e s t e r n M u tu a l L i f e I n s u r a n c e C o m p a n y . T h e d e f e n s e c o n t e n d e d th a t as the i n s u r e d h a d c o m m i t t e d s u i c i d e th at a c t f o r f e i t e d h is p o l i c y . T h e p olicy c o n t a i n e d th is c la u se. “ I f w i t h i n t w o y e a r s f r o m th e d a te h e r e o f s a id in s u r e d s h a ll die in c o n s e q u e n c e o f a d u e l o r shall w h e t h e r s a n e o r in s a n e d ie b y his o w n h a n d , th e n a n d in e v e r y s u c h c a s e th is p o l i c y sh a ll b e v o i d . ” T h e S u p r e m e C o u r t o f th e U n i t e d S t a t e s in t h e c a s e o f R i t t e r v s . M u tu a l L i f e I n s u r a n c e C o m p a n y 169 U . S. 139, a n d in a l o n g lin e o f c a s e s f o l l o w i n g th is o n e , h a d h e ld th a t i n surance com p a n ies cou ld n ot as s u m e t h e r is k o f s u i c i d e b e c a u s e it w o u l d b e c o n t r a r y to p u b l i c p o l i c y as t e n d i n g t o the c o m m i s s i o n o f c r im e . A ll the S u p re m e C ou rts of th e s ta t e s h a d h e ld a c o n t r a r y ru le a n d h e ld th a t w h e r e th e in s u r a n c e c o m p a n y a s s u m e d th e r isk th a t t h e y w e r e li a b le t h e r e o n . B u t the S u p r e m e C o u r t o f th e U n i t e d S t a t e s a n d th e F e d e r a l C o u r t s g e n e r a l l y h a d h e ld th a t it w a s a p r o h i b i t e d risk. I n the J o h n s o n c a se, j u s t d e c i d e d , t h e y r e v e r s e d th e ru le in th e R i t t e r c a s e a n d h e l d th at w h e r e s u i c i d e w a s c o m m i t t e d a ft e r th e t i m e li m it e d th a t th e c o m p a n y w o u l d b e lia b le thereon. T h i s b r i n g s th e F e d e r a l C o u r t s i n t o h a r m o n y w i t h th e d e c i s i o n s o f th e sta t e c o u r t s a n d s e tt le s a m uch d iscu ssed q u estion . It a f f e c t s m i l l i o n s o f in s u r a n c e p o l i c i e s a n d b i l l i o n s o f ris k s a n d is, t h e r e fo r e , o f n a t io n a l i m p o r t a n c e . S. F . P r o u t y , o f D e s M o i n e s , r e p BE A PATRO N OF YOUR LO C AL t a c t w i t h m a n y o t h e r in s u r a n c e c o m p a n ie s . H e has c o n s is te n tly f o l lo w e d safe and c o n s e r v a tiv e p rin c i p l e s in his m a n a g e m e n t o f th e com pany. C. S. V a n c e , u n d e r w r i t i n g m a n ager, has had t w e n t y yea rs e x p e r i e n c e in u n d e r w r i t i n g in I o w a . He w a s in c h a r g e o f th e R a t i n g D e p a r t m e n t o f th e I o w a S t a t e I n s u r a n c e D e p a r t m e n t d u rin g m o s t o f the tim e th a t l a w w a s in e ff e c t . H i s s u c c e s s w i t h th e I o w a N a t i o n a l is b e s t s h o w n b y t h e l o w lo s s e x p e r i e n c e o f p r e v i o u s y e a r s w h i c h h as been, c o n t i n u e d f o r th e y e a r 1920. r e s e n t e d th e p la i n t if f , a n d S t ip p , P e rry , B a n n ister and S ta rzin g er r e p r e s e n t e d th e insurance c o m p a n y . T h e case has be e n p e n d in g fo r fo u r vears. Iowa National Fire’s Record. A sp len d id re c o r d has been m a d e b y th e I o w a N a t i o n a l F i r e I n s u r ance C o m p a n y o f D e s M o in e s d u r i n g th e p a s t y e a r . T h i s s t r o n g I o w a c o m p a n y has m a d e ex ce lle n t p r o g ress sin ce its organ ization fou r y e a r s a g o , w h i c h is a fine t r i b u t e t o th e c a p a b i l i t i e s o f its o ff ic e r s a n d d irectors. N um bered am ong its d i r e c t o r s a re m a n y o f th e in f l u e n tial b a n k e r s o f t h e state. T h e I o w a N a t i o n a l F i r e n o w h as $ 7 5 ,0 0 0 ,0 0 0 o f in s u r a n c e in f o r c e , a g a in o f $26,0 0 0 ,0 0 0 f o r t h e y e a r 1920. A s s e t s a re n o w $1,200,000, an i n c r e a s e o f $4 1 3 ,0 0 0 in f o u r y e a r s . T h e g r o s s p r e m i u m i n c o m e f o r 1920 w a s a p p r o x i m a t e l y $650,0 00, an in c r e a s e o f $200,0 00 f o r t h e y e a r . 101 Federal pets U. S. License. The Federal Surety C om pany, D a v e n p o r t , h a s r e c e i v e d its li c e n s e f r o m th e U n i t e d S t a t e s T r e a s u r y D e p a r t m e n t , a n d its n a m e is in c l u d e d o n t h e list o f N o v e m b e r 20, w i t h t h e 10 p e r c e n t li m it o f $60,000. T h e su rety d ep a rtm en t w a s not s t a r t e d u n t il t h e m i d d l e o f N o v e m b er. H o w e v e r it r e c e i v e d a v e r y n ic e v o l u m e o f b u s i n e s s f r o m th e a g e n t s a n d t h e c o m p a n y is p l e a s e d w i t h th e r e i n s u r a n c e th a t h as b e e n s e n t b y oth er com p an ies. T h e c o m p a n y w ill b e a m e m b e r o f th e S u r e t y A s s o c i a t i o n o f A m e r i c a , and a lso a s u b s crib e r to the T o w n e r R a tin g Bureau. T h e s u r e t y d e p a r t m e n t is u n d e r th e s u p e r v i s i o n o f M r . H a l s e y B. S m it h , w h o w a s f o r m e r l y a s s i s t a n t s e c r e t a r y o f th e A m e r i c a n B o n d i n g and C asualty C o m p a n y o f S io u x C it y , I o w a . T h e I o w a N a t i o n a l is n o w t a k i n g b u s i n e s s f r o m 4 7 s ta t e s in a d d i t i o n to Io w a . M u c h o f th e c r e d i t f o r th is r e c o r d is d u e th e o f f ic e r s o f th e c o m p a n y . F ra n k L . M in er, w h o w a s elected p r e s i d e n t u p o n th e d e a th o f J o h n L . B l e a k l y , th e o r g a n i z e r o f th e c o m p a n y , la s t s u m m e r , is o n e o f t h e b e s t k n o w n i n s u r a n c e m e n in th e w e s t Orville Thorp to Make Address. a n d is w e l l q u a lif ie d t o b e t h e h e a d o f a p r o g r e s s i v e a n d g r o w i n g fire in T h e C edar R apid s L ife U n d e r surance co m p a n y . w r i t e r s A s s o c i a t i o n is p l a n n i n g an C. M . S p e n c e r , s e c r e t a r y , a f t e r a i m p o r t a n t sa les c o n g r e s s F e b r u a r y n u m b e r o f y e a r s in an i n s u r a n c e 11, 1921. I t is p l a n n e d t o in t e r e s t o ffice, s p e n t fiv e y e a r s w i t h t h e I o w a all th e u n d e r w r i t e r s o f I o w a an d S ta te I n s u r a n c e D e p a r t m e n t a n d a d ja ce n t territory. O rv ille T h o r p , c a r r ie d t o h is p o s i t i o n w i t h t h e I o w a r e c e n t l y e l e c t e d p r e s i d e n t o f th e n a N a t i o n a l th e w e a l t h o f e x p e r i e n c e tional a s s o cia tio n has p r o m is e d to and in fo rm a tio n g a in ed b y clo s e c o n s p e a k at t h e m e e t i n g . BANK B U IL D BE A YOUR D E P O S IT S BY S A V IN G S D E P O S IT O R THE ROYAL UNION MUTUAL LIFE INSURANCE COMPANY DES M O INES, IO W A T A K E from your bank deposit the sm all necessary amount annually to make life insurance an im portant part of your estate. enlarged estates. L ife insurance is the installm ent method of acquiring Payable in Cash Whether You Live or Die S ID N E Y A. FO STER, Secretary GOOD A G E N C IE S OPEN FRANK D. JA C K S O N , President R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T H E 102 N O R T H W E S T E R N B A N K E R January, 1921 Loans on Homes For Prosperous Iowa Cities We have money to loan at on new properties and will con tract with responsible parties to accept their loans. We have a long time loan with easy payment privileges. • Write for particulars. The Bond and Mortgage Co. C. H. Johnston, President H. W. Gamer, Vice-President 206 V alley National Bank Building DES MOINES, IOWA FOR BANKS AND BANK OFFICIALS PARTICULAR, personal service intel ligently rendered by men especially trained and experienced in all branches of Investment Banking. ABILITY to assist our bank clients at all times in keeping their funds safely and profitably employed and to aid in realizing upon their holdings when these funds are needed. AN ORGANIZATION of size and re sponsibility enabling our co-operation with banks, especially in Iowa and the Central West, in profitably and satis factorily financing local enterprises as well as cities, towns, school, highway and drainage districts. INVESTMENT BANKING in all its branches is our “whole existence”— not a side line. 10,000 miles of private wires help make our National Investment Service to bankers un usually prompt. Farm Loans W e are in the market for choice Iowa farm loans. Q uick ser vice, reasonable rates. Farm ers Bond & Mortgage Company EDWIN HULT, President Bankers Mortgage Company Capital $2,000,000 404-5-6 Hippee Building DES MOINES, IOWA 521 W aln u t St. Des M oines R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en loritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis / J a n u a r y , 1921 THE N OR TH W E STE R N BANKER 103 IO W A FARM M O R TG A G E SEC TIO N The Northwestern Banker is the official publication of the Iowa Farm Mortgage Association O F F I C E R S — Ed. Kauffmann, Davenport, Pres.; Griff Johnson, Des Moines, V.-Pres.; Daniel Rhodes, Fort Dodge, Treas.; F. O. Waples, Cedar Rapids, Sec. E X E C U T IV E CO M M ITTEE Geo. F. Helndel, ex-officio..................Ottumwa E. H. Lougeo............................... Council Bluffs F. B. M ille r......................................Cedar Falls Varick Crosley...................... ....W e b s t e r City H. S. Van Alstine........................ Gilmore City Almor Stern ............................................. Logan Carl R. Davis.........................................Waterloo D. H. M cK ee................................... Des Moines G. M. T itu s........................................... Muscatine H. I. Foskett.................................... Shenandoah Kenneth M c A r a ................................... Brooklyn J. F. W ebber.........................................Ottumwa Unfair Financial Burden Placed on Farmers Demands Relief ( C o n t i n u e d f r o m p a g e 2 0 .) d e n i e d th a t th e f a r m i n g i n d u s t r y is j u s t as i m p o r t a n t t o th e f o u n d a t i o n s o f n a t i o n a l p r o s p e r i t y as th e t r a n s p o rta tio n industry. W e n e e d s o m e p la n t o r e li e v e th e b a n k s in th e r e s e r v e c e n t e r s o f th e ir p r e s e n t lo a d o f p a p e r in e l i g i b l e f o r d i s c o u n t w i t h th e F e d e r a l R e s e r v e Banks. A r e m e d y c o u l d b e p r o v i d e d if th e b a n k s in th e r e s e r v e c e n t e r s c o u l d t r a n s f e r th is b u r d e n t o s o m e o t h e r a g e n c y f o r a y e a r ’ s t im e . T here w o u l d t h u s b e r e le a s e d an e n t ir e l y a d e q u a te a m o u n t o f cred it fo r p re s ent n eed s o f b o th a g ricu ltu re and g e n e r a l b u s i n e s s a n d f o r t h e r e li e f o f c o u n t r y b a n k s w h i c h a re n o w co m p e lle d to e xercise und u e p res s u r e o n th e ir c u s t o m e r s , a n d , w o r s e , still, t o refu se t o f u r n is h th e ir fa rm er c u s to m e r s essential credit f o r c a r r y i n g o n t h e ir o p e r a t i o n s . T h i s r e li e f is f u n d a m e n t a l t o t h ç r e lie f o f th e o t h e r n e e d s e n u m e r a t e d b elow , and m ature con sid era tion suggests a rev iv a l o f the W a r F i n a n c e C o r p o r a t i o n as t h e b e s t im m e d ia te ly ava ila b le a g e n c y fo r t a k i n g o v e r th is b u r d e n . W e , t h e r e f o r e , u r g e th e i m m e d i a t e r e v i v a l o f th e W a r F i n a n c e C o r p o r a t i o n w i t h specific p o w e r s and in stru ction s to a c c o m p l i s h th is e n d , w i t h t h e s t i p u la t io n th a t t h e c o r p o r a t i o n s h o u l d a ssu m e n o p a p er c a r r y in g a h igh er ra te th a n 7 p e r c e n t. T h i s m e a s u r e is in t e n d e d f o r relie f, n o t as a m e a n s o f profit. A t th e o u t s e t , it m u s t b e r e c a ll e d th a t th e s it u a t io n in r e g a r d t o w h e a t is b y n o m e a n s t h e r e s u lt o f norm al con d ition s. I t is th e r e s u lt o f th e p r e s s u r e b r o u g h t t o b e a r o n th e f a r m e r d u r i n g th e w a r t o p r o d u ce w h e a t “ to w in the w a r ,” n o m a t t e r w h a t th e c o s t . I n r e s p o n d i n g t o th is a p p e a l th e f a r m e r a n d his f a m i l y w o r k e d e a r ly a n d l a t e ; he p a id w a r p r i c e s f o r h is s u p p l i e s ; c o m p e t e d w ith the w a g e s o f m u n i t i o n s f a c t o r i e s in hiring- h is l a b o r a n d p u t in t o c u l t i v a t i o n la n d w h i c h o r d i n a r i l y w o u l d n o t b e r e g a r d e d as p r o f i t a b l e f o r th is u se. A s a re s u lt, th e c r o p s n o w r e a d y f o r sale w e r e p r o d u c e d at c o s t s e n t i r e l y b e y o n d ord in ary standards, and fou n d ed r a th e r on th e n e e d s o f w a r th a n th e d ictates o f bu sin ess p ru d en ce. To s t i m u l a t e p r o d u c t i o n o n th is b a s is , p r i c e s w e r e f ix e d as an a s s u r a n c e a g a i n s t lo s s t o th e p r o d u c e r , w h o h a d t h r o w n c a u t i o n t o th e w i n d s in r e s p o n d i n g t o th e a p p e a l o f th e g o v ernm ent. W h e n th e 1919 c r o p w a s r e a d y to m a r k e t , h o w e v e r , th e p r o d u c e r , in v e r y m a n y c a s e s , c o u l d n o t sell at t h e s e fix e d p r i c e s b e c a u s e th e r a il w a y s c o u l d n o t f u r n is h ca rs. W h e n c a r s w e r e at la s t a v a il a b le , w h i c h w a s n o t u ntil t h e 1920 c r o p c a m e on . th e p r ic e s h a d fa l le n s o fa r as t o b e b e l o w th e c o s t o f p r o d u c t i o n . I f th is b r e a k in p r i c e s h a d s t o p p e d at a le v e l r e p r e s e n t i n g f a i r ly the r e la t io n o f s u p p l y t o d e m a n d , p r o b a b l y n o r e m e d y w o u l d b e r e q u ir e d , a n d th e f a r m e r w o u l d h a v e t o take FARM h is in e v i t a b l e loss. The best a u t h o r it i e s , h o w e v e r , are q u o t e d to t h e e f f e c t th a t t h e r e is n o m o r e w h e a t in th is c o u n t r y th a n is n o w needed for our o w n con su m p tion , a n d o n e o f t h e l a r g e s t g r a in firm s o p e n l y p r o p h e s i e s th a t w h e a t w i ll b r i n g a m u c h h i g h e r p r i c e in Ju n e. Is it s u r p r i s i n g th a t th e f a r m e r , th erefore, c o n fr o n t in g a price o f little o v e r a d o l l a r o n th e f a r m in th e c h i e f p r o d u c i n g s e c t i o n s , is c o n v i n c e d th a t p r e s e n t p r ic e s a re o n l y t e m p o r a r y an d is e n d e a v o r i n g to h old for better p rice s? A c a r e f u l s t u d y o f th e f a c t s i n d i c a t e s th a t th e p r e s e n t la c k o f b u y i n g p o w e r in th e m a r k e t is n o t du e, as w e h a v e p o i n t e d o u t , t o o v e r s u p p l y , b u t t o la c k o f fin a n c ia l a b il it y o n th e p a r t o f b u y e r s a n d a la c k o f con fid en ce th a t prices h a v e yet reached b o tto m . W e r e p rices on ce t o s h o w a s t e a d y u p w a r d t r e n d , it c a n n o t b e d o u b t e d th a t t h e y w o u l d r a p i d l y a p p r o x i m a t e fa ir le v e l s . T o r e s t o r e c o n f i d e n c e th a t g r a i n w i l l n o t b e u n d u ly fo r c e d on the m a rk et b y th e b a n k r u p t c y o f p r o d u c e r a n d c r e d i t o r w e n e e d j u s t th e r e li e f th a t it w o u l d s e e m c a n b e s t b e p r o v i d e d b y r e v i v i n g th e W rar F i n a n c e C o r p o r a t i o n a n d g i v i n g it th e p o w e r b e f o r e in d ic a t e d . W e b e l i e v e th a t th is m e a s u r e w o u l d b y its p s y c h o l o g i c a l e f f e c t a c c o m p l i s h th e d e s ir e d e n d o f re-esta b lish in g c o n fid e n ce w ith a m i n i m u m fin a n cia l b u r d e n o n th e c o r p o r a t i o n a n d w e w o u l d m a k e the d i s t i n c t r e s e r v a t i o n th a t th e life o f LOANS W ”e have unlimited funds for choice loans from $ 100 to $ 12 5 per acre, as well as > for standard loans not exceeding $75 per acre. THE MIDLAND SYSTEM MEANS PERSONAL SERVICE Use the facilities that this organization offers you to better serve your customers and your bank MIDLAND MORTGAGE COMPANY 418-20 C ed ar R ap id s S avings B an k B u ild in g CEDAR RAPIDS, I O W A OFFICERS AND DIRECTORS F. C. Waples, President Clifford DePuy, Vice President Robert S. Sinclair, Vice President R . J. Soener, Ass’ t Secretary W . L. Cherry W . W . O tto Ingram Bixler, Secretary-Treasurer p. C. Rude R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T H E 104 N O R T H W E S T E R N I N V E S T M E N T th e c o r p o r a t i o n s h o u l d b e r e s t r i c t e d t o th e p e r i o d o f t h e e m e r g e n c y . A s a p e r m a n e n t m e a s u r e o f r e li e f in f i n a n c i n g f o r e i g n e x p o r t s , w e sh ou ld i n d o r s e th e f o r m a t i o n o f c o r p o r a t i o n s u n d e r th e E d g e B ill. T h e b o u n t i f u l c o r n c r o p o f th is y e a r h a s d e p r e c i a t e d in p r i c e f a r b e l o w th e c o s t o f p r o d u c t i o n , n o t s o m u ch on a ccou n t o f ov e r-p ro d u ctio n as b e c a u s e o f t h e f a c t th a t th e n o r m a l c o n s u m p t i o n o f c o r n f o r c a t t le f e e d i n g is s e r i o u s l y d i m i n i s h e d o n a c c o u n t o f t h e d e m o r a l i z e d c a t t le m a r k e t a n d th e i n a b il it y o f c a t t le m e n t o f i n a n c e t h e m s e l v e s in b i p i n g c a t t le t o f e e d a n d in m a n y c a s e s e v e n t o h o l d th e c a t t le t h e y n o w o w n t o m a t u r i t y . I t is d if fic u lt f o r f a r m ers t o b o r r o w n e w m o n e y t o b u y e it h e r f e e d o r c a tt le . F o r th a t r e a s o n w e c a n n o t , as in n o r m a l y e a r s , b y f e e d i n g c a t t le , m a k e c o r n s e l l i n g at 30 t o 4 0 c e n t s w o r t h $1 b y f e e d i n g it t o c a tt le . I n o t h e r w o r d s , if th e c a t t le i n d u s t r y w e r e f u n c t i o n i n g as u s u a l it w o u l d l a r g e l y a b s o r b w h a t a p p e a r s t o b e an o v e r p r o d u c t i o n a n d w o u l d c a u s e th e p r i c e o f c o r n t o h a r m o n i z e w i t h at le a s t th e B A N K E R J a n u a r y , 1921 S E C T IO N c o s t o f p r o d u c t i o n o r its w o r t h as f e e d , w h i c h w o u l d b e l a r g e l y in e x ce ss o f the c o s t o f p ro d u ctio n . F r o m all o v e r th e c o u n t r y c o m e s th e s t o r y o f th e g r e a t lo s s n o w b e i n g s u s t a i n e d b y e v e r y o n e e n g a g e d in t h e li v e s t o c k i n d u s t r y . T h e story is t h e s a m e e v e r y w h e r e , o f i n a b il it y t o f i n a n c e n e w p u r c h a s e s a n d in m a n y cases to ca r r y to m a tu rity and sa tisfa ctory m ark etin g con d ition s th e p r e s e n t h e r d s , o r e v e n t o r e ta in the b r e e d in g herds. U n l e s s th e in d u s tr y can b e sa v e d fo r the future, w h a t w i l l b e th e p r i c e o f m e a t s in the yea rs to c o m e ? T o d a y n o in d u s t r y in t h e c o u n t r y , s o i m p o r t a n t t o all, is s u f f e r i n g s u c h a h e a v y lo ss . C e r t a in b a n k s o f r e s e r v e c it ie s h a v e a l r e a d y p r o v i d e d a s p e c ia l f u n d o f u p w a r d o f $ 2 5 ,000,000 as a p a r tia l m e a s u r e o f r e li e f f o r th is s e r i o u s s it u a t io n , b u t h e r e a g a in it is o b v i o u s th a t t o p r e v e n t a s e r i o u s cr is is , b o t h t o th e c o r n f a r m e r a n d t h e li v e s t o c k f a r m e r , w h o a re s o c l o s e l y r e la t e d , t h e r e m u s t b e t h e r e lief, w h i c h as b e fo r e stated, can o n ly b e a ffo rd e d b y an a g e n c y o p e r a t i n g as w e h a v e s u g g e s t e d th e W a r F i n a n c e C o r p o r a t i o n s h o u l d o p e r a t e . I n th is c o n n e c t i o n , r e li e f c a n b e g i v e n b y th e b a n k s o f t h e c o u n t r y , e s p e c i a l l y m e m b e r s o f th e F e d e r a l R e s e r v e s y s t e m , w h o a l r e a d y h a v e all th e f a c i lit ie s a n d c a n d o t h e w o r k w i t h o u t e x p e n s e , lo s s , or, w h a t is m o s t i m p o r t a n t , d e la y . I t m u s t h e r e b e p o i n t e d o u t th a t c r e d i t s in t h e l i v e s t o c k i n d u s t r y m u st b e fo r p e rio d s o f m o r e than six m o n t h s , a y e a r , 18 m o n t h s o r e v e n t w o years. A s a p erm a n en t a g e n cy fo r fu rn is h in g su ch credits, m e a s u r e s lik e th a t o f C o n g r e s s m a n M c F a d d e n sh ou ld b e ca refu lly c o n s id ered. I n p r e s s i n g f o r r e l i e f in t h e m e a s ures a b o v e p r o p o s e d , and n o ta b ly th ro u g h the rev iv a l o f the W a r F i n a n c e C o r p o r a t i o n , w e r e it e r a t e o u r c o n v i c t i o n th a t m e a s u r e s o f g o v e r n m e n t r e li e f a re f o r c e d b y th e com p lete degree of gov ern m en t c o n trol d u rin g the war and are w a r r a n t e d b y th e n e c e s s i t i e s o f a tran sition period . P a tern a lis tic m easures sh ou ld , how ever, be r e g a r d e d p u r e l y as e m e r g e n c y m easu res and acts p ro - Foreign Exchange PROMOTION IN IOWA All European Countries Yesterday— Today Tomorrow W e h a v e p r e p a r e d an a n a ly sis o f I o w a ’ s s p e c u la t i o n o f $ 3 0 0 ,0 0 0 , 0 0 0 in n e w c o m m e r c i a l e n te r p r is e s . The in form a tion it c o n t a in s on th e s it u a t io n as w e find it n o w is o f great v a lu e to bankers in d e a lin g w ith th e ir c u s t o m e r s . PACAI FINANCE C O R P O R A T I O N W e shall b e p le a sed t o mail a c o p y 42 Broadway, New York TELEPHONE BROAD 7551 R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en wi'iting to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE J a n u a r y , 1921 NORTHW ESTERN BANKER 105 v i d i n g f o r t h e m s h o u l d c u r t a il th e ir life a n d s h o u l d e n c o u r a g e t h e s u b stitu tion fo r th em o f p r c p e r priv a te a g e n c i e s as r a p i d l y as p o s s i b l e . W e w o u l d a l s o a g a in e m p h a s i z e th e fe e i n g th a t t h e p r e s e n t s i t u a t io n is c h i e f l y d u e t o la c k o f c o n f i d e n c e a n d t h e p r e s e n t s tr a in o n o u r c r e d i t f a c ilit ie s . W e b e l i e v e t h a t th e in i t i a t io n of these proposed r e li e f m easures w ill restore co n fid e n ce and b r in g relief th ro u g h the o rd in a ry c h a n n e l s o f t r a d e t o s u c h an e x t e n t that the actual use o f the m ea su res proposed w ill be com p a ra tiv ely li m it e d . T h e fa rm m o r t g a g e ban kers of t h e c o u n t r y o f f e r — as a l w a y s — t h e ir c o - o p e r a t i o n in c o u n s e l a n d a c t i o n . OPTIMISM IN THE INVEST MENT MARKET. A Convenient Record Book Investments ( C o n t i n u e d f r o m p a g e 2 8 .) sto ck s and b o n d s o f ca refu lly ch osen p u b lic utility c o m p a n ie s w ill p r o v e t o b e v e r y p r o f i t a b l e in t h e n o t d i s ta n t f u t u r e , a n d w e r e c o m m e n d t h e ir p u r c h a s e w h i l e t h e y a re still on a l o w p rice le v e l.” for Good business demands a systematic record o f your investment holdings. Federal In come Tax requirements make it imperative A Handy Christmas Souvenir. H A con v en ien t little C hristm as s o u v e n i r in t h e f o r m o f a h a n d y p a d a t t a c h m e n t f o r t h e t e l e p h o n e h as b e e n s e n t o u t t o all it s c o r r e s p o n dents b y the D r o v e r s N a tio n a l B a n k of C h icago. T h e s o u v e n i r is in k e e p in g w ith the m o t t o o f the b a n k th a t the “ S ou ven ir is lik e th e D r o v e r s S e r v i c e — A l w a y s at y o u r co m m a n d .” alsey & co.’s T h e Record book is com pact, practical and capable o f expansion with the accumu lation o f you r h old in g s. In clu d ed in its con ten ts is a bond interest table, also a chart giving informa tion regarding all issues o f Liberty and Victory Bonds, A copy op this Security Record •will be tent ‘without charge upon request fo r B oiH et FE -3 Form Stanley-Henderson Company. HALSEY, T h e S ta n ley -H en d erson C om p a n y , F arm M o rtg a g e Bankers of Cedar R a p id s, I o w a , has ju st b e e n o r g a n iz e d and in co rp o ra te d w ith an a u t h o r i z e d c a p it a l o f $100,000.00, t h e i n c o r p o r a t o r s b e i n g S. C. A r m s t r o n g , E e e R . J a m e s , E . B. C o o k , D r . H . E . P f e i f f e r , A . C. S t e w a r t , I. C. S t a n le y , E . A . J o h n s o n , H . E. L. B. LEDGERW OOD, Secretary , stuart “ Loose Leaf Security R ecord” meets this need ex actly. T hru its use,investors have always at hand complete information regarding their holdings— theiramount ma turity ,interestpaymentda tes, prices paid, taxable status, etc. In c o rp o ra ted — STUART S u ccessors to N . W , H a tsey & iff C o ., CO. C h ic a g o 2 0 9 S O . L A S A L L E S T R E E T , C H IC A G O NEW YORK P H IL A D E L P H IA ST. LO U IS M IN N E A P O L IS A. M . CLOUD, President C. R . W EIR , Vice President-Manager FARM iiiiiiiiiiiiiiiiiiiiiiin ii M i iiu i ii in ii ii iii iii ii iii iii ii m i iii ii iii iii ii iii iii ii in n ii n ii iii ii iii ii iii iii ii in ii ii iii iii ii iii iii ii ii Write us for rates and terms on your farm loans. BOSTON M IL W A U K E E D E TR O IT J. J. BURBRIDGE, Treasurer LOANS ii ii iii iii ii iii iii ii iii ii iii iii ii n iii ii iii iii ii ii'i iii 'u in i iii ii iin i iii ii iii ii iin i iii ii iii in i iH iii ii iii iii ii iii n ii iii iii ii iii ii iim We offer prompt and efficient service. We will appreciate your inquiry. American Mortgage & Securities Company H om e Office M ancheater, Iow a C E D A R R A PID S , IO W A C A P I T A L $200,000.00 Surplus and Profits $25,000.00 General Office H Igley B uilding Cedar Rapida, Iow a R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 106 T H E N O R T H W E S T E R N B A N K E R Y O U R confidence and co J a n u a r y , 1921 operation during the past year is sincerely appreciated and prompts us to wish you a IHappyanò"prosperous y t e .w ^ e a r W e invite you to visit our new home, 500 W a ln u t St., form erly occupied by the Bankers Trust Company. National Investment andFinance Co. In v e stm e n t B an k ers Burns Brothers Incorporated D ES M O I N E S , I O W A R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y , 1921 THE H e n d e r s o n a n d D r . G. S. K r a u s e , all o f C e d a r R a p i d s . T h e o f f ic e r s o f t h e com pany a re H. E. H enderson, p r e s i d e n t ; I. C. S t a n l e y , S. C. A r m s t r o n g a n d D r . H . E. P f e i f f e r , v i c e N OR TH W E STE R N BANKER v e m b e r 1920. M r . S t a n l e y a l s o h as had e x te n siv e b a n k in g and farm lo a n e x p e r i e n c e g a i n e d w h i l e c a s h ie r o f th e F i r s t T r u s t & S a v i n g s B a n k o f E sth erville, Io w a . In January, 1918, h e w a s e l e c t e d t o th e p o s i t i o n o f s e c r e t a r y o f th e A m e r i c a n M o r t g a g e & S ecu rities C o m p a n y w h ic h o f f ic e h e h e ld u n t il r e c e n t l y . 107 S. G. A r m s t r o n g is o n e o f t h e m o s t s u b s t a n t ia l a n d s u c c e s s f u l b u s i n e s s m e n o f C e d a r R a p i d s . H e is p r e s i d en t o f the A r m s t r o n g C lo t h in g C o m p a n y , on e o f the la rg est c lo t h i n g s t o r e s in e a s t e r n I o w a , v i c e p r e s i d e n t o f th e A m e r i c a n T r u s t a n d S a v in g s B an k and d ire cto r o f the C edar R a pids L ife In su rance C o m - Strategy in Investing P u t t i n g a t h o u s a n d d o ll a r s t o w o r k f o r a l o n g t e r m o f y e a r s t o ea rn 7 % t o 8 % m e a n s , n o t m e r e l y th a t th e i n c o m e w i ll p u r c h a s e $ 7 0 t o $ 8 0 w o r t h o f g o o d s e a c h y e a r f o r th e life o f th e i n v e s t m e n t , b u t $ 7 0 t o $ 125 w o r t h , as c o m m o d i t y p r i c e s g e t b a c k t o n o r m a l. T h e r e is p e r h a p s n o s t r o n g e r a r g u m e n t f o r i n v e s t i n g in l o n g term b on d s n ow . E s p e c i a l l y s t r a t e g i c , t h e r e f o r e , is th e a c t i o n o f e x c h a n g i n g s h o r t l y m a t u r i n g b o n d s f o r s o u n d , l o n g - t e r m is s u es. O u r p a m p h l e t , “ P r i c e s a n d V a l u e s , ” a n a l y z e s th e s t r a t e g y o f b o n d e x c h a n g e s f r o m th e s t a n d p o i n t o f in t r i n s ic v a lu e s a n d th e e f f e c t s o f c o n d i t i o n s o n p r ic e s . I t p o i n t s o u t m a n y s p e c i f i c is s u e s still l o w in p r i c e a n d g i v e s c o m p a r i s o n s h e l p f u l in p a s s i n g j u d g m e n t . H. E. HENDERSON p r e s i d e n t s ; A . C. S t e w a r t , s e c r e t a r y a n d L e e R . J a m e s , tr e a s u r e r . M r. P le n d e rso n has had a w id e b u sin ess exp erien ce, h a v in g spent ten y e a r s in retail a n d b a n k in g , b u s i - A c o p y w i ll b e s e n t f r e e o n r e q u e s t a n d w i t h o u t o b l i g a t i o n . A r e p r e s e n t a t i v e w i ll ca ll t o d is c u s s th e g e n e r a l m a r k e t c o n d i t i o n s w i t h y o u , if y o u d e s ir e it, o r y o u m a y a c c o m p l i s h s a t i s f a c t o r y r e s u lts b y c a l l i n g at o u r offic e. A. B. Leach & Co., Inc. Investm ent Securities t N ew Y o r k P h ila d e lp h ia St. L o u is B oston M in n e a p o lis M ilw a u k e e C in c in n a ti St. P a u l B a lt im o r e C le v e la n d D e tr o it D u lu th 103 South La Salle St. CHICAGO Keep M ortga ge Funds M ob ile /T 'H E eastern market for your farm and city mortgages is greatly improved when offerings are accom panied by Title Insurance policies by this Company. Land locked dollars often p reven t realization o f ready profits. N ew M Y o r k T it l e & Co . ortgage at 135 Broadway, New York City, has an adequate, economical system of National Title Insurance. Special booklet (N. B.) will be sent on request. I. C. STANLEY n e s s in w e s t e r n I o w a . In 1913 he m o v e d to M a n ch es ter, I o w a and join ed th e o rg a n iza tio n of th e A m erica n M o r t g a g e & S ecu rities C o m p a n y , h o l d i n g th e p o s i t i o n o f t r e a s u r e r o f th a t c o m p a n y u n til N o A filiated with the A merican T rust Company B R O A D W A Y A T C E D A R ST. NEW Y O R K C I T Y R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T H E 108 p a n y and C e d a r R a p id s N a tion a l Bank. D r . H . E . P f e i f f e r , is a s u c cessfu l p h ysician and su rg e o n and d ire cto r o f the C ed a r R a p id s T r a n s - N O R T H W E S T E R N B A N K E R fer C o m p a n y . A . C. S t e w a r t is p rop rietor and m anager ot the S ou ven ir L e a d P encil C om p a n y , a bu sin ess started a fe w y e a rs a g o N ational Service, Inc. New Y o rk B oston P hiladelphia Offices throughout the United States A n In v e stm e n t Service Based U pon F IN A N C IA L D E M O C R A C Y Now Offering: Bankers Union for Foreign Com merce and Finance, Inc. J a n u a r y , 1921 c o v e r in g a lim ited te rrito ry b u t t h r o u g h th e c a r e f u l a n d v e r y effi c ie n t d i r e c t i o n o f M r . S t e w a r t t h e bu sin ess has g r o w n re m a rk a b ly and n o w i n c l u d e s in its t e r r i t o r y t h e c e n tral a n d w e s t e r n s ta tes. L e e R . J a m es has rep resen ted the P e o r ia L i f e I n s u r a n c e C o m p a n y as s ta t e agen t for I o w a for several years. H e h as b u il t u p a v e r y c r e d i t a b l e b u s i n e s s in th is t i m e a n d is c o n s i d e r e d o n e o f th e m o s t s u c c e s s f u l i n s u r a n c e m e n o f th e state. T h e b oa rd o f d irectors includes th e o ff ic e r s n a m e d a n d D r . C. S. K r a u s e a n d E. B. C o o k . D r . K r a u s e is a p r o m i n e n t p h y s i c i a n a n d s u r g e o n and a d ire cto r o f the C o rn B elt S avin gs Bank. M r. C o o k has e x t e n s i v e real e s t a t e h o l d i n g s a n d is an e x c e l l e n t j u d g e o f real e s t a t e v a lu e s . H e is p r e s i d e n t o f t h e C a l d e r s V a n and S tora g e C o m p a n y and d ire cto r o f the K e n w o o d S a v in g s B ank. T h e a ctiv e m a n a g e m e n t o f the c o m p a n y w ill b e u n d er the d ire ctio n o f M r. H e n d e r s o n and M r. S tan ley w h o h a v e h a d y e a r s o f e x p e r i e n c e in t h e f a r m lo a n b u s in e s s . Tracy Speaks in New York. D IR E C T O R S President, Henry Brunner, International Banker. Vice President, George Ed Smith, President Royal Type writer Company, New York. Vice President, John Jacob Arnold, President National Service, Incorporated. Director, Fairfax S. Landstreet, Chairman Board of Direc tors New Yoi'k Dock Company. Director, Dwight E. Austin, Managing Director Nestles Food Company. Treasurer, Frank S. Perkins, Recently Commissioner of Public Records, Com. of Massachusetts. Director, Burwell S. Cutler, of the Cutler Desk Co. The distribution of Securities among the MANY promotes FINANCIAL DEMOCRACY. This, plus full earnings of invest ment, is the NEW IDEA. J. A . T r a c y , fire m a r s h a l, D e s M o i n e s , w a s a s p e a k e r at th e fif t e e n t h a n n u a l c o n v e n t i o n o f th e S ta te F i r e M a rsh a ls’ A s s o cia tio n h e ld in th e H o t e l A s t o r in N e w Y o r k c i t y D e c . 8-10. M r. T r a c y sp ok e on the s u b je c t : “ W h y Rural D is tr i c t s a n d V i l l a g e s S h o u l d C o - o p e r a te in F i g h t i n g F i r e . ” First National, Brooklyn, Iowa. The F irst N a tion a l Bank of B r o o k ly n , I o w a , has re s o u r c e s and lia b ilit ie s to th e am ount of $1,268,371.82, a c c o r d i n g t o a r e c e n t statem ent. First National, Eldon. We have openings for a few high-grade salesmen T h e F i r s t N a t i o n a l o f E l d o n , la ., s h o w s r e s o u r c e s a n d lia b il it i e s o f $409,845.08. It is ca p ita lized at $25,000. O f f ic e r s a r e : P r e s i d e n t , J. A . B r a d l e y ; v i c e p r e s id e n t , J. O . H u n n e l l a n d c a s h ie r , C . W . F i n n e y . Western Companies Show Gains. FARM ERS M O R TG AG E CO. Authorized Capital $1,000,000.00 COUNCIL BLUFFS, IOWA Dealers in Mortgages, Municipal and Industrial Bonds and Investment Securities. LIBERTY BONDS BOUGHT AND SOLD I n a d i s c u s s i o n o f t h e fire i n s u r ance o u tlo o k , a lead in g C h ic a g o m a n a g e r d e c l a r e s th a t W e s t e r n fire co m p a n ie s w ill s h o w trade g a in s w ith s m a l l p r o f i t o n an e a r n e d p r e m i u m b a s is d u r i n g th e y e a r 1920. H e b a s e s h is a s s e r t i o n o n t h e f a c t th a t m e r c h a n t s a re n o t r e p l e n i s h i n g t h e ir s t o c k s . C o n se q u e n tly , there is a m a r k e d r e d u c t i o n in in s u r a b l e v a lu es w ith an u n u su a lly la r g e a m o u n t o f c a n c e l l a t i o n , as t h e r e su lt. R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T H E J a n u a r y , 1921 N O R T H W E S T E R N 109 B A N K E R Barstow, Jr., Heads New Firm. G e o r g e E . B a r s t o w , Jr., M r . H . G. C o n k l i n g a n d S e t h S. S p e n c e r , Jr., h a v e f o r m e d a c o - p a r t n e r s h i p u n d e r t h e fir m n a m e o f B a r s t o w & C o m p a n y , at 18 E x c h a n g e P l a c e , N e w Y o r k . M r . B a r s t o w is a m e m b e r o f the N e w Y o r k S to c k E x c h a n g e , f o r n in e y e a r s w a s m a n ager o f the b o n d d ep a rtm en t o f P o t te r , C h o a t e & P r e n t i c e , a n d f o r th e la s t fiv e y e a r s w a s a p a r t n e r in Kean T a y lor & C om pany. M r. C o n k lin g w a s form erly b on d m a n ager of K ean T a y lo r & C om pany, and M r. S p e n ce r w a s resid en t p a rt n e r in N e w Y o r k o f O ’ B r ie n , P o t t e r & Com pany. STANLEY-HENDERSON CO. The Northwestern Banker OFFICERS H. E. HENDERSON, President I. C. STANLEY, Vice President S. G. ARMSTRONG, Vice President H. E. PFEIFFER, Vice President A. C. STEWART, Secretary L. R. JAMES, Treasurer FARM M O R TG AG E BANKERS 213-216 HIGLEY BLDG. CEDAR RAPIDS, IOWA W e take pleasure in announcing the o r ganization and in corp ora tion o ft h e S t a n ley -H en d erson C om p a n y , F arm M o r t gage B ankers, w ith offices at 213-216 H ig ley B uilding, C edar R apids, Iow a. W e are ready to consider a n y business y o u have to offer fo r M a rch 1st closing. W rite us for rates. A t Y o u r Service A lw ays Financial Investigations Auto Phone 9588 Audits, Cost and Accounting Systems W m . Guthrie & Co. Certified Public Accountants 837-838 Frances Building Sioux City, Iowa William Bryden & Co. C E R T IF IE D PU B L IC A C C O U N T A N T S A U D IT S A N D IN V E S T IG A T IO N S IN C O M E T A X R E T U R N S P R E P A R E D 1817 D O U G L A S S T R E E T TELEPH O N E OMAHA T Y L E R 1572 C H A S . F. S H A W G U Y W O O D S , Photographer Handwriting Expert Ottum w a, la. 211 Iowa Bldg., Des Moines, Iowa All questioned points in handwriting or typewriting PORTRAITS, MINIATURES, COMMERCIAL Long Distance Phone Walnut 4216 APPO IN TM EN TS R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 110 T H E N O R T H W E S T E R N J a n u a r y , 1921 B A N K E R IN D E X T O A D V E R T IS E R S 1 A c m e C hauta,uqua S y s t e m ............. 34 A m e r ic a n B a n k P r o t e c t io n C o .... 69 A m e r ic a n B onding- & C a s u a lty C o .. 96 A m e r ic a n C o m m e r c ia l & S a v i n g s . . . 50 A m e r ic a n E x c h a n g e N a tio n a l . . . . . 68 A m e r ic a n M o r t g a g e & S e c u r it ie s . . 105 A m e r ic a n N a tio n a l B a n k ................... 68 A m e r ic a n P e r f o r a t o r C o ................ 78 A m e s N a tio n a l ............................................ 55 A t la n t ic N a tio n a l B a n k ................. 40 I 1 1 = = Ü = g I = = I 1 = § j= § = 1 I 1 3 I g = g = g § = = 3 1 1 1 = = = = 1 j g s 3 § i 1 | 3 3 F e d e r a l D e p o s it & T r u s t C o ................ 89 2 , F e d e r a l L a n d B a n k , O m a h a .................. F id e lit y & D e p o s it C o .............................. 112 F ir s t N a tio n a l B a n k , B o s t o n ................ 75 F ir s t N a tio n a l B a n k , B u r l i n g t o n . . . . 38 F ir s t N a tio n a l B a n k , C h ic a g o .............. 33 F ir s t N a tio n a l B a n k , C o u n cil B lu ffs . 46 F ir s t N a tio n a l B a n k , D a v e n p o r t . . . . 2 F ir s t N a tio n a l B a n k , D u b u q u e ........... 54 F ir s t N a tio n a l B a n k , D u lu t h ................ 70 F ir s t N a tio n a l B a n k , M in n e a p o lis . . . 70 F ir s t N a tio n a l Ba,nk, O m a h a ................ 2 F ir s t N a tio n a l B a n k , S io u x C ity . . . . 2 B F ir s t N a tio n a l B a n k , St. L o u i s ........... 2 F ir s t N a tio n a l B a n k , St. P a u l .............. 69 B a c k e r , J a c o b ............................................... 109 F ir s t N a tio n a l B a n k , W a t e r l o o ......... 46 B a k e r , C o r n e liu s ....................................... 34 F ir s t T ru s t & S a v in g s B a n k .............. 54 B a llin g -a ll B o t e l ....................................... 48 F is h e r C o m p a n y ........................................ 84 B a n k e r s A c c id e n t I n s u r a n c e C o .......... 96 B a n k e r s A u t o In s u r a n c e C o ................. 98 G B a n k e r s E x c h a n g e ................................... 50 B a n k e r s M o r t g a g e C o ................................102 O ates, R e n f r e w W .................................... 47 B a n k e r s S e r v ic e C o ..................................... 47 G ir a r d N a tio n a l B a n k ............................. 67 B a n k e r s T ru s t Co., D es M o i n e s . , . . . 53 G o r d o n -V a n T in e C o . ! ........................... 73 B a r s h a l ¡Steel E q u ip m e n t C o .............. 84 G r e a t -W e s t e r n A c c id e n t Ins. C o . . . . 100 B e a ch , W ill A., P r in t in g C o ............... 59 G r o t h -H o s t e t le r C o .................................... 56 B e a ch , W . W „ C o ....................................... 90 G u a r a n ty L ife In s u r a n c e C o ................ 94 B ish o p . E. J ......................................................109 G u a r a n ty T ru s t C o ..................................... 74 B la c k H a w k N a tio n a l B a n k ................. 48 G u th rie, W m . & C o ...................................109 B o n d & M o r t g a g e C o ............................... 102 B o y d & M c K in le y ..................................... 48 B o y d & M o o re .............................................. 38 l( B r o w n H o t e l .................................... 78 H a ls e y S tu a r t C o ....................................... 105 B r y d e n , W m . & C o ...................................... 109 H a m m o n d P r in t in g C o ........................... 67 B r u n d a g e , B. R . . . ............ 39 H a m m a r s tro m , A. H ................................ 109 B u r n s B r o th e rs , I n c ..................... 106 H a n c o c k L ife I n s u r a n c e Co., J o h n . 96 H a n n a h & Co., A d a m ............................... 70 H a n o v e r N a tio n a l B a n k ......................... 92 C H a r g e r & B l i s h . ........................................ 80 C a rlso n , J. L .................................................. 81 H a rr o p , W . C. & C o .................................. 40 C ase, J. I. P lo w W o r k s C o ................... 35 H a ft P a r r C o ............................................... 77 C ase, J. I. T h r e s h in g M a ch in e C o . . 83 H a w k in s M o r t g a g e C o ........................... 91 C ed ar R a p id s N a tio n a l B a n k ............... 39 H o g g s o n B r o s ............................................... 27 C ed ar R a p id s L i f e ....................... 96 H o m e s te a d C o m p a n y ............................. 92 C e n tra l N a tio n a l E ir e In s C o ............... 98 H u ll, W m . 1................................................... 90 C e n tr a l S ta te B a n k , D e s M o in e s . . . . 38 C e n tr a l T ru s t Co., o f D e s M o in e s . . . 44 1 C e n tr a l T ru s t Co., o f I l l i n o i s ............... 62 C e n tra l T ru s t Co., M a so n C i t y ............ 50 I n v in c ib le M eta l F u r n it u r e C o ......... 81 C h a se N a tio n a l, N. Y ................. 39 I o w a B o n d in g & C a s u a lty C o ............. 95 C itiz e n s S a v in g s B a n k ............................ 47 I o w a L it h o g r a p h in g C o ........................... 82 C itiz e n s N a tio n a l B a n k .......................... 38 I o w a L o a n & T r u s t C o ............................. 9 C ity N a tio n a l B a n k , C l i n t o n ............... 46 I o w a M u tu a l L ia b ilit y In s. C o ........... 100 C la rk , B y e r s & H u t c h in s o n .................. 109 I o w a N a tio n a l B a n k , D a v e n p o r t . . . . 55 C la ssifie d A d s ............................................. I o w a N a tio n a l B a n k , D e s M o in e s . . . 45 C lip le s s P a p e r F a s t e n e r C o ................... 87 I o w a N a tio n a l F ir e I n s u r a n c e C o . . . 95 C o m m e r cia l N a tio n a l, W a t e r l o o . . . . 40 I o w a S ta te I n s u r a n c e C o ........................100 C o m m e r c ia l ¡S avin gs, D e s M o in e s. . . 42 I n t e r -S ta te S u r e ty C o ............................. 61 C o m m e r c ia l S a v in g s, M a so n C ity . . . 46 I r v in g N a tio n a l B a n k ............................. 32 C o m m o n w e a lth L ife In s u r a n c e C o . . . 97 C o m m u n ity S e r v ic e S ta tio n C o ............ 88 C o n tin e n ta l and C o m m e r c ia l B a n k s . 30 J C o n tin e n ta l N a t’ l B a n k , S io u x C ity . 42 J a m e s & Co., T h o s. M ............................. 7 C o n tin e n ta l M o r t g a g e an d Loa.n C o . I l l J o r d o n B r os., S io u x F a l l s .................... 60 C o rn E x c h a n g e N a tio n a l B a n k .......... 66 C o u n cil B lu ffs S a v in g s B a n k ............... 48 C o v in g to n B r o s .............................................. 91 Iv C r a d d ic k A d v e r t is in g S e r v i c e ............... 36 C u m m in s P e r f o r a t o r C o .......................... 88 K r u s e , O. A. C o .......................................... 58 A Ü § 1 1 Ü g Ig §j 1 s - = 1) L D a k o t a T ru s t & S a v i n g s ......................... 60 D es M o in e s D u p lic a t in g C o .................... 43 D e s M o in e s L ife & A n n u it y C o ..............100 D e s M o in e s N a tio n a l B a n k ................... 49 D e s M o in e s R u b b e r S ta m p W o r k s . . . 42 D e s M o in e s S to c k E x c h a n g e ...................104 D e s M o in e s T e n t & A w n in g C o ........... 90 D illo n L o c k W o r k s ................... ! ............. 89 D r o v e r s N a tio n a l B a n k ....................... 41 D u b u q u e N a tio n a l B a n k ....................... 54 L a m b e r t P r in t in g C o ............................... 61 L e a c h & Co., A. B ....................................... 107 L e a v itt & J o h n s o n N a tio n a l B a n k .. 51 L e a v itt & J o h n s o n T ru s t C o ................ 2 L e M ars P r in t in g C o ............................... 87 L e n n o x F u r n a c e C o .................................. 89 L io n B o n d in g & S u r e ty C o .................. 95 L iv e S to c k E x c h a n g e N a t’ l B a n k . . . . 7 L iv e S to c k N a tio n a l B a n k , O m ah a . . 64 L iv e S to c k N a t’ l B a n k , S io u x C ity . . . 60 L y tle C o ............................................................ 86 1 M 1 = s = 3 i g 3 3 E 1 3 E llis & H o lla n d .......................................... 97 E r n s t & E r n s t ............................................. 71 1 1 3 3 3 F F arm ers F arm ers F arm ers F arm ers A u t o m o b ile I n s u r a n c e C o .. 98 B o n d & M o r t g a g e C o ........... 102 L iv e S to c k In s u r a n c e C o . . 96 M o r t g a g e C o ............................. 108 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N N a tio n a l A m e r ic a n L ife Ins. C o .......100 N a tio n a l B a n k o f C o m m e r c e ................ 51 N a tio n a l B a n k o f th e R e p u b lic .............I l l N a tio n a l C ash R e g is t e r ......................... 79 N a tio n a l C ity C o m p a n y ..........................102 N a tio n a l C ity B a n k .................................. 66 N a tio n a l F id e lit y L ife Ins. C o ........... 98 N a tio n a l P a r k B a n k ................................ 60 N a tio n a l S e r v ic e , I n c ................' ..............108 N ew Y o r k T itle & M o r t g a g e C o ......... 107 N o r th e rn T r u s t Co. B a n k ................... 43 N o r th w e s t e r n N a t io n a l B a n k ........... 3 N o r th w e s t e r n N a tio n a l L ife Ins. C o . 2 N o r th w e s t e r n ¡Stam p W o r k s ............. 71 o O ffice S p e c ia ltie s C o . . . . . . .................... O m aha N a tio n a l B a n k ............................. O m ah a P r in t in g C o .................... 29 90 44 82 60 53 52 53 78 65 64 P P a c a t F in a n c e C o r p o r a t io n ..................104 P a c k e r s N a tio n a l B a n k ........................... 63 P e o p le s S a v in g s B a n k ............................. 40 P e o p le s T r u s t & ¡S a vin gs B a n k .......... 52 P ie rc e , R o b in s o n & S p r a g u e ................ 85 P re s to n , C has. H. C o .................................. 71 R R h o d e s, W a lt e r H ...................................... 66 R o y a l H o t e l ................................................. 48 R o y a l U n ion M ut. L ife Ins. C o ...........101 S S a n fo rd , M o r r is ......................................... 84 S c h la m p p C o., F r a n k ............................... 85 S e a b o a rd N a tio n a l B a n k ......................... 75 S econ d N a tio n a l B a n k ............................. 53 S e c u r ity N a tio n a l Blank, S io u x C ity, I o w a ............................................................ 54 S e c u r ity N a tio n a l B a n k , S io u x F a lls , S. D ................................................................. 56 S e c u r ity ¡S avin gs B a n k ........................... 56 S haw , C h a rle s F ......................................... 109 S io u x F a lls N a tio n a l B a n k .................. 57 S io u x F a lls S a v in g s B a n k .................... 58 S io u x N a tio n a l B a n k ................................ 47 S napp H o t e l ................................................. 64 S ta n le y -H e n d e r s o n Clo............................ 109 S ta te C e n tra l S a v in g s B a n k .............. 43 S to c k y a r d s N a tio n a l B ank, So. O m aha, N e b ............................................... 63 S to c k y a r d s N a tio n a l B a n k , So. St. P a u l, M in n ................................................. 59 S w ig e r t , H o w a r d M fg . C o .................... 81 U U n ion U n ited U n ite d U pham T r u s t C o .......................................... 92 S ta te B a n k ...................................... 50 S ta tes N a tio n a l B a n k ............. 63 B ros. C o ............................................100 V V a lle y N a tio n a l B a n k ............................. V itz h u m , S c h e itle r , B u r n s .................... M M cC o y & C o................................................... M cN a m a ra Office S u p p ly C o ................ M a r s h a llt o w n S ta te B a n k .................... M a sse y P ia n o C o ...................................... M e ch a n ic s & M e ta ls N a tio n a l B a n k M e rc h a n ts L o a n & T r u s t C o ................ M e rc h a n ts N a tio n a l B a n k , B u r lin g to n , I o w a .............................................. M e rc h a n ts N a tio n a l B a n k , C edar R a p id s , I o w a ........................................... M e rc h a n ts N a tio n a l B a n k , O m aha, N e b .................................................................. 65 6 M e rc h a n ts T ra d e J o u r n a l .................... M id la n d M o r t g a g e C o .............................. 103 M id la n d N a tio n a l B a n k ......................... 68 M id w e s t S ta te B a n k ............................... 48 M in n e h a h a N a tio n a l B a n k .................... 58 M is s o u r i S ta te L ife Ins. C o ................ 95 M u s c a tin e S ta te B a n k ........................... 92 54 85 W W a lte r s , C h a rle s E ............................. 63, 93 W a t e r lo o S a v in g s B a n k ......................... 55 W e b s t e r C o u n ty N a tio n a l B a n k ......... 44 W e s te r n L ife In s. C o ............................... 99 W h ite , P h illip s C o ....................................... 109 W ils o n , E d w in B ird , I n c . . . . i .................. 5 W o lf & C o ................................................... 72 W o o d s , G u y .................................................. 109 T H E J a n u a r y , 1921 N O R T H W E S T E R N 111 B A N K E R In maintaining its individuality intact over a period of nearly tlurty years, when the tendency to consolidation has heen general, THE NATIONAL BANK OF THE R E P U B L I C O F C H I C A G O has constantly held itself in a friendly and helpful attitude toward its patrons, many of whom began with the hanlc as young men a quarter of a century or more ago. W e have assisted them m developing and main taining their own individuality. T h e spirit of cooperation between the hank and its customers has created a mutually pleasant and profitable relationship, as demonstrated by the substantial success o f both. O n this basis o f accomplishment, w e continue to invite the business o f responsible people requiring new or additional banking facilities. JOHN A. LYNCH, . President WM. T. FENTON, 1st Vice-Pres. and Manager ROBERT M. McKINNEY, 2nd Vice-Pres. WATKIN W. KNEATH, 3rd Vice-Pres. OSCAR H. SWAN, Cashier THOS. D. ALLIN, Asst. Cashier LOUIS J. M E A H L , W M . C. FREEM AN, CHAS. S. M AC FER R AN , W A L T E R L. JOHNSON, . THOS. H. O’ CONNOR, H A R O L D M. MICHAELSON, E TH EL P. BRIGHAM , - ’ Asst. Cashier Asst. Cashier Asst.Cashier R E Asst. Cashier Asst.Cashier FO Asst. Cashier Asst.Cashier - IN VESTM ENT, TRUST and SAV IN G S DE PA RTM EN TS in charge o f W atkin W . Kneath M A N A G E R FOREIGN EXCH AN G E DE PA RTM EN T, A. O. W ilcox M A N AG ER DEPARTM EN T OF A N A L Y SIS AN D STATISTICS, James S. Baley S O U R C E S R T Y -F O U R M I L L I D O L L A O R N S Conilinental M ortgage & Loai1C0. Securities Building, Des Moines Offers its services to Banks, Cattle Dealers, Feeders, Automobile, Truck and Tractor Distributors, Manufacturers and Jobbers for the purchase and sale of high-grade Farm Loans-Agricultural and Commercial Paper Correspondence solicited with banks, corporations and individuals who are in the market for prime short term securities or who have such paper for sale. Edw. C. Starrett, President John A. Elliott, Treasurer R ea d ers w ill c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 112 T H E N O R T H W E S T E R N B A N K E R AGENTS! W ould you like to visit EUROPE T or the ORIENT as our guests ? HE open roads that lead to Europe’ s battlefields and to the mysterious O rient n ow lie before the present and future agents o f the Fidelity &l D eposit Com pany. Y o u can be on e o f the fortunate I T he Fidelity &. D eposit C om pany is going to present a trip to Europe or to the O rient to its ten agents and their families, w h o make the best record in the getting o f business in a single year. This is the plan. Read it carefully: i ns The period o f competition will be from April 1, 1921, to March 31, 1922. All F &c D General Agents, Sub-agents and Branch Mana gers, appointed before April 1, 1921, will be eligible. The ten prizes will be a twomonths’ trip to Europe, or to the Orient, and will include the winners’ wives and their children, if enthusiasm for the doctrines o f Colonel Roosevelt has not carried the individual winners beyond the parentage o f two. A ll expenses will be paid by the Fidelity & Deposit Company. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The towns and cities o f the country will be classified, so that the Sub-agent who leads in the town o f less than 10,000 popula tion will have precisely the same chance o f winning and will be awarded the same prize as the competitor located in New York, Chicago or Philadelphia. In determining the winners, a point system will be used which will be based on business actually produced during the period o f the competition. This system will give every agent an equal chance. Last year’s business will not be considered. Rules and Regulations The rules and regulations gov erning the competition will be announced about January 1,1921. They will be formulated by the committee named below, which will also select the successful competitors and award the prizes. The Awards and Judges The names o f the successful competitors will be announced as soon after April 1, 1922, as possible. The following committee will have entire charge o f the com petition : Vincent A. Cullen—Fidelity <Sc Deposit Co., New Y ork ; M. F. Dobbins — Dobbins &c Smith, General Agents, Memphis,Tenn.; William Hugh Harris—Vice-Pres ident, in charge o f Agency Dept.; G. Arthur Howell — Haas &l Howell, Gen. Agts., Atlanta, Ga.; Emmett Myers — Manager, St. Louis Branch Office ; F. B. Owen —Owen, Crowell, Laurenson & Co., Gen. Agts., Cleveland, O.; F. A. Price—Conkling, Price &. W ebb, Gen. Agts., Chicago, 111.; V-L. P. Shriver—Gen. Agt., Pitts burgh, Pa.; Guy Le R. Stevick, Resident Vice-President, Pacific Coast, San Francisco, Cal.; A. L. Tash, Boston Branch Office; Spencer W elton, Fidelity & De posit Co., Baltimore, Md. This contest will be good for you, good for us, and good for the whole Surety business. There is a lot o f good Surety business to be had in your territory. The surface has not been scratched. W e will help you in every pos sible way to get it. G o after it and then go to Europe or the Orient as our guest. For further details o f this un usual competition, write to the Fidelity and Deposit Company OF M ARYLAND BALTIM O R E F id elity and S u rety B o n d s and Burglary Insurance J a n u a r y , 1921
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