Full text of The Northwestern Banker : January 1923, Twenty-Eighth Year, Number 425

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Federal Reserve Bank of St. Louis

2

THE N O R T H W E S T E R N

N o rth w e ste rn N ational
Life Insurance Company

BANKER

Jan u ary , 1923

DIRECTORS
F. A. CHAMBERLAIN, Chairman F irst National
Bank
E. W. DECKER,
Bank

Pres.

Northwestern

National

C. T. JAFFRAY, Pres. F irst National Bank
T. B. JANNEY, Pres. Janney, Semple, Hill & Co.

MINNEAPOLIS, MINNESOTA

E.

L. CARPENTER,
Clarke Co.

Pres.

Shevlin-Carpenter-

B. F. NELSON, Pres. Hennepin Paper Co.

JOH N T . B A X T E R , P r e s i d e n t

A. A. CRANE, Vice-Pres. Bankers Investment Co.
J. A. LATTA, Vice-Pres. Northwestern National
Bank
A

P U R E L Y

FOUNDED

M U T U A L ,

O LD -LIN E,

W E S T E R N

C O M P A N Y

JOHN T. BAXTER,
Life Ins. Co.

Pres.

Northwestern

Nat’l

1857

OFFICERS
F. H. DAVIS, President
C. T. KOUNTZE, Vice President and
Chairman of the Board
T. L. DAVIS, Vice President
JOHN W. GAMBLE, Vice President
F. W. THOMAS, Vice President
E. L. DROSTE, Vice President
J. H. BEXTEN, Cashier
G. T. ZIMMERMAN, Asst. Cashier
A . H. CHISHOLM, Asst. Cashier
E. F. JEPSEN, Asst. Cashier
J. F. McDERMOTT, Asst. Cashier

Resources $20,000,000.00

GBankofOmaha
X r S X

N a tio n a l

has efficiently served Western Banks for
65 years.
Your business is invited.

FIRST

« - NATIONAL
BANK W L
IN THE UNITED STATES

Use Our Knowledge of Iowa
What is more reasonable than that this old and
progressive Iowa bank should be able to serve you
intelligently in anything that is banking?
Send us your Iowa items—only when we have
demonstrated our ability to serve you satisfac­
torily do we ask for your account.

FIRST NATIONAL BANK
DAVENPORT, IOWA
A. F. DAWSON, P re s id e n t

IRVIN J . GREEN, C ash ier

Ask the Man Who
Knows
D oes advertising pay?
W hen you ask the m an who
K N O W S , the one w ho has used
advertising intelligently, you will
get the real facts.
H e will tell you th a t advertisin g
placed in the rig h t m edium is a
w onderful business builder.
W hen you w an t to reach bankers
use the publication th a t is really
dom inant in this territo ry .

The

Northwestern Banker
Banking Service
That Counts
The thorough fam iliarity of
the Officers of The F irst Na­
tional Bank w ith the needs
of bankers in the Sioux City
district, as w ell as the pains­
taking personal attention w hich we accord th e transac­
tions of every custom er, enable this institution to sup­
ply a service to banks and bankers of exceptional
value.

TH E

FIRST NATIONAL BANK
OF SIOUX CITY, IOWA

Total Resources over $12,000,000

Readers w ill confer a f a v o r b y m e n tio n 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 e n w r i t i n g to o ur advertisers.


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Federal Reserve Bank of St. Louis

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

LOA N S
m

i f t&s#

f I 'HE LO A N IN G P O W E R o f the banks o f the N orthw est
has been a mighty factor in th e developm ent of th e region
w hich they serve. From pioneer days u n til th e present, the
granting o f loans has been inseparably c o n n e c te d w ith
grow th and progress.
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W hen The Northwestern National Bank was incor­
porated in 1872, its founders — pioneer business
m en from b oth East and W est — caught a vision
of the greatness o f th e budding N orthw est
territory, and were glad to venture a p or­
tion o f their w ealth for th e founding o f a
bank w hich w ould help to tu rn their vis­
ion into reality.
T he bank w hich they founded proved high­
ly successful, and their belief in th e N o rth ­
west sound.

i 1'

From him that would borrow of thee; turn
thou not away. Matthew 5 :42.

Early in its existence, th e business o f The
Northwestern expanded beyond th e confines
o f its hom e city. T he oldest-bank account
on its ledgers, a M innesota bank, was opened
in 1876. In 1881, tw o years before th e completion of th e N o rth e rn Pacific Railway, a b an k in
the th en rem ote M ontana T erritory becam e one
o f its correspondents. By th e beginning of th e 90’s its
clients were found in m ore th a n ten states, and its
daily average o f loans exceeded 3 m illion dollars. T o ­
day, its correspondent banks thickly d o t the entire N o rth ­
west, and its latest published statem ent shows loans and
discounts o f approxim ately $50,000,000. T h e recent situa­
tion has been, o f course, abnorm al, b u t The Northwestern
has always endeavored to be fair in th e distribution o f its
loanable funds.
D uring the h a lf century of its growth, this bank has seen
hundreds o f enterprises th a t are now nationally prom inent
grow from sm all beginnings — beginnings th a t have been
m ade w ith this b an k ’s cooperation and aid. A n d because
of its far-reaching connections in all parts o f the N orthw est,
its loaning pow er has been o f untold im portance. As the
Northwest continues to grow, it is the desire o f this bank to
increase its share of helpful cooperation.

THE NORTHWESTERN
NATIONAL BANK
M INNEAPOLIS
R


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Federal Reserve Bank of St. Louis

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TH E N O R T H W E S T E R N

4

BANKER

Jan u ary , 1923

They Came to the Fire
But Choked the Hose
G
o f u n in t e r ­
rupted growth had established
Lan enviable national reputa­
tion for a trade-marked line of farm
machinery. Then came the slump in
prices, combined with unusual cap­
ital requirements. Something had to
be done—and done quickly.
e n e r a t io n s

A committee of bankers assumed
control of the business. Expenses
were pared; personnel was revised
and reduced; practically all advertis­
ing was abolished.
Faced with the necessity of m ov­
ing the finished products, the sales
manager urged dealers to stock freely.
M eantime, nothing was done to
create a demand upon the dealers.
Naturally, the dealers declined to do
at their own expense what the manu­
facturer seemed unwilling to do.
As a result, sales lagged.
The creditors had come to the fire,
but they choked the hose. They shut
off the vital current of advertising
which would have protected the
good will, created consumer demand

and effected a normal turnover.
Meanwhile, a competing concern
continued its advertising and was
able, in spite of unfavorable condi­
tions, successfully to reduce its in­
ventory.

For two years, farmers have re­
paired their old implements. Now,
with returning prosperity, their re­
quirements are far above normal.
There is a rich field ready for har­
vesting by those implement firms
that will advertise intelligently. And
experienced implement manufactur­
ers consider T he Country Gen ­
tleman, with its 800,000 subscribers,
the leading medium for this purpose.
It is, in fact, the one national farm
paper that is read throughout the
country, both by leading farmers
and progressive dealers.
U pon request, T he Country
Gentleman will gladly send a rep­
resentative to explain the most prac­
ticable methods of winning and hold­
ing the good will of farmers and their
families.

<TSe C O U N T R Y
G E N T L E M A N
The Curtis Publishing Company, Independence Square, Philadelphia, Pennsylvania
The Country Gentleman


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Federal Reserve Bank of St. Louis

The Saturday Evening Post

The Ladies’ Home Journal

Ja n u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

In th e Decem ber issue of T he N orthw estern B anker ap ­
p eared an article entitled, “ Is Y our B ank T eller More Diffi­
cult to A pproach T han the P resident H im self?”, w ritten hy
“ T he Man B ehind the C ounter.” The subject m atter dis­
cussed struck us as being so vital and interesting th a t we
sent out a letter to a large num ber of subscribers, calling a t­
tention to it. As a result, this office has been deluged w ith
a flood of com m ent, a small p art of w hich is given below.

things to our tellers many tim es
but probably not in as forceful and
effective w ay and we would like
to have som e extra copies for dis­
tribution.
GEORGE C. WILLIAMS, a ssis ­
ta nt vic e preside nt, Des
N a t i o n a l : — Thank you for

ALVIN

JOHNSON,

vic e p re s i­
dent, L i v e S t o c k N a ti on a l, O m a h a :

—W e are in receipt of your letter
in w hich you en close an article
w ritten by Geo. T. M cCandless, en­
titled, “Is your bank teller more
difficult to approach than the presi­
dent h im self?” This is certainly a
very good article and inspires us to
call a m eetin g of our tellers, at
w hich tim e this article w ill be read
to them .
W e certainly think th at the m aga­
zine that u ses articles of this char­
acter is doing very constructive
work. The N orthw estern Banker
how ever, is noted for its good arti­
cles and for its constructive work.
L. H.
First

HENRY,

N ation al,

vi c e president,
S io u x C it y , l a . : — I

have found the D ecem ber article by
the Man Behind the Counter very
in terestin g and right to the point.
I am wondering if w e could ar­
range w ith you to have copies of
the article m ailed to about ten of
our tellers from your office.
DALE E. CHAMBERLAIN, a ssis ­
ta nt cas hi er , D r o v e r s N a ti on a l, C h i ­
c a g o : — W e have alw ays taken con­
siderable in terest in the articles
w ritten by Mr. M cCandless and
have arranged so that our em ployes
can read th ese articles. The one
appearing in the Decem ber issu e is
exception ally good and our tellers
have all had an opportunity to read
it.
W. DALE CLARK, vi c e president,
N a t i o n a l : — Thank y o u for
the article you sen t us. If you have
them available, send us seventyfive copies together w ith your sta te­
m ent. W e have said th ese sam e
Omaha


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Federal Reserve Bank of St. Louis

Moines

sending
me a copy of the article in your
Decem ber issue. It is a very good
statem en t of a problem th at some
officer in every bank is livin g w ith
every day. I have posted this arti­
cle on our bulletin board.
IRVIN J. GREEN, c as hi er , F i r s t
D a v e n p o r t : — On D ecem ­
ber 15 you very kindly sen t me a
copy of an article appearing in
your D ecem ber issue. I should like
very much to have a copy of this
for each of m y em ployes and w ish
that you could send me about
tw en ty copies.
N ation al,

D.

R.

L y tt o n,

W ESSLING.
Iowa,

S a v in g s

presi dent,
B a n k : —-

Geo. T. M cCandless, w hose articles
appear in your m agazine, is a real
preacher of the Bank Gospel. W e
all need his serm on—-the officers,
as much as the clerks. W e know
they are read and appreciated.
Bankers all over the country have
com m ented about the good features
of your m agazine.
L. L. D. STARK, a ssis ta nt tru st
officer, M id la n d Nati on a l, M i n n e ­
a p o l i s : — Thank you for the copy of
your article which appeared in the
D ecem ber issue. I b elieve it an
excellen t article and there is cer­
tainly a lot to think about in it.

5

m ight add that the articles written
by Mr. M cCandless are alw ays
tim ely and I never fail to read
them.
W.

E.

manager^
T r u s t Co.,

BROCKMAN,

p u b li cit y
M in n e so ta
Lo an
and
M i n e a p o l i s : — W e appre­

ciate your letter of D ecem ber 15
relative to the article in the D ecem ­
ber N orthw estern Banker.
We
have asked our tellers to read over
carefully this article and absorb
any tips that m ight be of value to
this company.
FRANK G. BURROW S, a ssis ta nt
m ana ger , p u b li c it y d iv isio n, Irving
N ation al, N e w Y o r k : — Thank you
lor drawing m y attention to the
Decem ber N orthw estern Banker.
The article you refer to is handled
in a very in terestin g m anner that
puts the serm on across.
A fter
reading it, I think I shall keep my
eye open for w hatever else iny
come from Mr. M cCandless’ pen.
C. E. NAREY, presi dent, F i r s t
N ation al, S p ir it L a k e , l a . : — Mr. Mc­
C andless w rites som e very perti­
nent articles and the one this
m onth is certainly not the least
im portant one th at he has w ritten.
Of course you have been told often
that your m agazine contains so
much good m aterial that a word
along this line is hardly needed.
The article referred to w ill be
worth m any tim es th e subscription
price to more than one institution.
W e w ill all profit by it and hope
there w ill continue to be many
others of the sam e class.
E. E. BLOOM, assista nt cashier,
M u sc a tin e State B a n k : — I desire to
express my appreciation for your
kindness in bringing this m atter
to m y attention. I have read the
article carefully and w ill say it is
one of the b est of its kind I have
ever read. I have often called to
the attention of the other officers
of the bank the im portance of hav­
ing good men in the tellers’ cages,
because, as your article stated, the
bank is often, or alw ays judged by
the treatm ent given by the man at
th e window. I am going to see that
everyone of our tellers reads this
article.

JOE H. INGW ERSEN, vic e p re s­
ident,

F irst

Na ti on a l,

Du lu th : —

The article you sen t me is splendid,
and I propose to m ake use of it at
the w eekly conference w e have held
w ith our em ployes for a year and
one-half.
In this connection, I

FRANK B. YETTER, vic e p re si­
dent,

Iowa

N ation al,

D a v e n p o rt: —

Thank you very kindly for yours
of the I5th. I had already read it
in your D ecem ber issu e and con­
sider it a very clever piece of work.

6

TH E N O R T H W E S T E R N

Jan u ary , 1923

BANKER

NORTHWESTERN
t BANKER t

CLIFFORD DE PUY
Publisher
G. A. SNIDER
Manager

DONALD H. CLARK
Editor
RALPH W. MOORHEAD
Associate Editor

C o p y r i g h t e d *1923 b y N o r t h w e s t e r n B a n k e r .

CONTENTS FOR JANUARY

T w e n ty -e ig h th Year

N um ber 425

Page

Page
A cross the D esk from the P ublisher.................... .
........................................................ By Clifford D ePuy

8

F rontispiece ................................... ......J. W. W heeler

10

Service Idea Is Sure to Grow Rapidly in the B usi­
n ess of Insurance..........By W illiam S. Crawford 24
The Hog Is the F arm ers’ and B ankers’ M ainstay
Through Thick and Thin..By J. L. Knoernschild

27

Breadth of V ision and Spirit of Cooperation Are
N eeded in 1923 ...............................................................

11

Intelligent Eanking Service Is B est Method of
H elping the Farm er..........By M ilton J. E rickson

“Save W hile Spending” Is Slogan of N ew Auto­
m atic Savings P lan ...................................................... 28

12

B anking Is Just B u sin ess— and N ot Glorified
B usiness at T hat........................ By G. A. O’R eilly

13

Tax on Stock D ividends and an E xcess Profits
Tax May Be Expected Soon.....................................
.......... ................ ...................By H. Archibald Harris

30

A Bank Director May Be an A sset or a L iability

14

Legal D epartm ent ...........................

32

Personal Paragraphs ......................................................

34

In the D irector’s Room ............................................. A-

38

Bond Section .....................................................................

43

Iowa Farm M ortgage Section .......................................

49

No Klondike Rush “Back to the Farm ” U ntil
Conditions Are Im proved..........................................
..............................................By Geo. T. M cCandless

15

The Bunk About W age S la v es.....................................
....................................................By Dr. Frank Crane

16

Investm ent Bankers Close a Successful Year
Greeting 1923 W ith Confidence............................
...........................................................By L eslie Hanson

17

A B usiness Man T ells: “W hy I Go to My Banker
W ith My T roubles”........................ By J. F. Coupe

18

Good Roads Are W orth the Cost to the Farmer
and to the Community................By Gladys Pitre

19

W hy the D etroit N ational Banks W ant to E s­
tablish Branches .....................By Richard P. Joy 21
N ature Furnishes A lm ost Inexhaustible Supply of
Building M aterial.................... By M. F. Holahan

22

Bank Equipm ent Section ..............................................

53

For Bankers and Their W ants .................................

56

Insurance Section ..........................................................

59

South Dakota Section ..... ,.............................................

65

N ebraska Bank N ew s ....................................................

73

M innesota Bank N ew s ...........

79

North Dakota Bank N ew s............................................

84

Iowa Bank N ew s ............................................

87

Index to A dvertisers ...................................................... 113

T h e c o n te n ts o f th i s m a g a z in e a r e f u ll y p r o te c te d b y c o p y r ig h t.

PUBLISHED AT 555 SEVENTH STREET, DES MOINES, IOWA

The Oldest Financial Journal
West of the M ississippi River

Special Representativa
Rex V. Lentz

Care Northwestern Banker
Phone Walnut 1844

Minneapolis Office
Frank S. Lewis
840 Lumber Exchange Bldg.
Phone Main 3865

Entered as second class matter at the Des Moines postofGce


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M EM BER
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Financial Advertisers Association

First in the United States to Join
the A udit Bureau of Circulations

Chicago Office

New York Office

506 Monroe Bldg.
Phone Randolph 6748

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St. Louis Office
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424 Merchants-Laclede Bldg.
Phone Main 1342

Subscription Rates, S3.00 per year; 50 cents per copy

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

A T YOUR SERV ICE
O ur
O ur
O ur
O ur
O ur
O ur
O ur
O ur

C orrespondent Bank D epartm ent
C om m ercial D epartm ent
In v estm en t D epartm ent
M ortgage D epartm ent
T ru s t D epartm ent
Savings D epartm ent
F oreign D ep artm en t
Safe D eposit D epartm ent

O U R E N T IR E O R G A N IZ A T IO N

I o w a L o a n t & T r u s t G o m r ä j ^ht
^
MEMBER

B

A

N

K

FEDERAL RESERVE

Ca p i t a l , S u r p l u s

and

Profits

HIPPEE BLDG., DES MOINES


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SYSTEM

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THE N O R T H W E S T E R N

BANKER

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Jan u ary , 1923
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ACROSS THE DESK FROM THE PUBLISHER
IR S T of all I want to wish
you a very H ap p y New
Year. If I could step into your
bank and grasp you by the hand
and look you in the eye perhaps
I could then better express how
sincerely and truly do I wish
you not only a H appy New
Y ear but a prosperous and a
successful one.
I som etim es th in k th a t we
extend our season’s g re e t­
ings in ra th e r a stilted and
p erfu n cto ry m anner. W e do
it som etim es as a m a tte r of
form.
No g reetin g s really
count for m uch unless th ey com e from the heart.
A fter all there is something inspiring and helpful
in turning over a new leaf and starting a new year.
The obstacles, the hardships and the failures of the
past are no longer realities, but remain only as mem­
ories. W hatever new problems may confront us

F

during 1923 will be solved
easier because of the experi­
ences we have had in the past.
Personally, I look happily and
hopefully into the new year.
Basic business conditions are
much better than they were one
year ago. The price of farm
products is 104% higher than
at the first of last year. Many
other facts which I might men­
tion to you, and which you al­
ready know, indicate that 1923
will be a year of progress and
prosperity.
But whatever trials or problems may perplex you,
I only wish that you may have the physical strength,
the mental capacity, the strength of character and
the fighting spirit all arrayed on your side to help
you win the conflict.
Again, Happy New Y ear!

E n cou ragin g F acts
E R H A P S no better index to the prosperity of
the nation has been presented recently than
the report made at the sixteenth annual convention
of the Association of Life Insurance Presidents.
Reports made to this convention indicate that over
$9,000,000,000 of new life insurance was written
during 1922. The total old line insurance in force
at the end of 1922 was more than $50,000,000,000.
This increased buying of insurance indicates that
there has been and still is an increased buying power
on the part of the American people.
From the standpoint of helping the American
farm er to finance himself, the reports show that

P

farm mortgage loans held by American life insur­
ance companies have more than doubled in less than
5 years. The total of such loans is now $1,418,000,000, and is in excess of the loans which the com­
panies have made on city property. The farm loan
rate was recently reduced by most companies from
5^2 to 5, thus showing that ample funds are avail­
able for agricultural purposes, and at a rate which
is certainly more than fair to the American farm er.
All of these facts brought out at this insurance
convention are certainly an index to our present
prosperity, and assure us that 1923 will continue the
good work which has been started in 1922.

P ro sp erity A h e a d
T T H E beginning of every new year we are
alw ays in terested in a ttem p tin g to pull back
the cu rtain and look as far ahead as possible and
see w h a t fu tu re events are likely to occur, and
to see w h eth er they will be favorable or unfavor­
able in th eir effect on th e general business situ ­
ation.

A

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Federal Reserve Bank of St. Louis

O ne of the m ost in tere stin g forecasts of b usi­
ness conditions for 1923 w as prepared recently
by Dr. M elvin Copeland, P rofessor of M ark etin g
and D irecto r of the B ureau of B usiness R esearch,
G raduate School of B usiness A d m in istratio n of
H a rv ard U niversity, in w hich he gives seven
facts th a t foretell a new w ave of prosperity. D r.

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TH E N O R T H W E S T E R N

Jan u a ry , 1923

Copeland prepared this analysis of business con­
ditions for th e Joseph R ichards C om pany of N ew
Y ork, and his statem en ts are indeed m ost in te r­
esting-.
T h e order in w hich he m entioned them are as
follow s: 1. B usiness has its house in order. 2.
E u ro p ean conditions discounted. 3. B anks and
credits favorable. 4. P rice tren d upw ard. 5.
C rops favorable. 6. L abor sh o rtag e m eans con­
sum er buying. 7. Car shortage m eans w holesale
and retail buying.
In speaking of th e banking and credit situ a ­
tion, D r. C opeland say s: “T h e general banking
and credit situ atio n is favorable for industrial
expansion. C redits th a t w ere frozen in 1920
largely have thaw ed out. T h e banks have been
accum lating larg er re s e rv e s ; the dem ands for

BANKER

credit have been reduced as a re su lt of w id e­
spread business d e p re ssio n ; th e low er level of
com m odity prices also has m ade it possible for
m any firms to avoid as g re at dependence upon
bank loans for financing th eir b u sin ess; in g en ­
eral m oney rates are low. T hese are conditions
w hich usually precede a general u p w ard sw ing
of business p ro sp erity .”
T h e crop situ atio n seem s favorable, first, b e­
cause th e corn and w h eat crops will be large in
quantity, and b oth of these, as well as th e other
staple crops have been raised a t less cost th an
d uring any previous year.
W ith conditions as favorable as these outlined
there certainly seem s to be no reason w hy p ro s­
p erity should not be ahead of us in an ab u n d an t
m easure d u rin g 1923.

9

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The Value of M oney
O T H E student of world conditions there is
nothing more interesting than a careful analysis
of the fluctuating value of the money issued by the
various countries of the world.
F or example, take Germany and Russia. W hat
the outcome is to be as a result of the greatly in­
creased circulation of the German m ark and the
Russian ruble only time will tell— and perhaps not
such a very long time at that.
Before the war the German mark was worth
about 24c, or practically four for $1. Today you
can buy 4,000 marks for $1 or 400 for one cent.
The total circulation of German marks is now
over 400,000,000,000, and the printing presses are
grinding them out at the rate of 5,000,000,000 a day.
Only a few days ago you could buy 20,000,000
Russian rubles in paper for one American paper
dollar. Before the w ar these same 20,000,000
rubles were worth $10,000,000 in gold.
The story is told of a Russian who worked for
25 years and lived economically, saving 3,000,000

T

11

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rubles, worth $1,500,000 in gold. H e came to this
country and planned to go into business, but when
he arrived here he found that his fortune, which
was once worth $1,500,000, had a value in actual
money of less than 25c—not very much capital on
which to start a business.
The value of the good American dollar was never
more appreciated than now.
It is interesting to know that 25% of all the marks
are held outside of Germany. It is estimated that
at least 5,000,000 Americans have purchased marks,
for which they have paid $500,000,000. These
m arks today are in th e tru e sense of th e w ord,
mere “scraps of paper.”
The value of money, after all, is based upon the
stability of the government, which is made stable
only because the individual citizen is w illing
to work and save and not try to supplant an organ­
ized government with a disorganized, irresponsible,
socialistic, political regime.

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for $3.00 is all that is reauired to secure the
monthly visits of the Northwestern Banker for an entire year. Each issue
contains from 108 to 200 pages of mighty interesting matter pertaining to
hanks 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
“ A C A S H I E R 'S

CHECK”

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Federal Reserve Bank of St. Louis

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the banking fraternity and submit same for publication. You do not have
to agree with us, or with anyone else. We learn things by an interchange
of ideas, and people with whom we disagree often prove valuable teachers.
We shall be glad to hear from you.
“ NO PROTEST” 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, com, etc.,
and dotted with thousands of prosperous banks, all doing a good
business, and the majority of them are readers of “ The Northwestern.”
"SURPLU S AND UNDIVIDED PROFITS” increase very rapidly with those 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 ^application. Your business solicited and appreciated. The “Bankhas been twenty-six years in its present field.
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1

President Farm Mortgage Bankers Ass’n of America
sI

JEROME W. W HEELER
P resident Capital Trust and Savings Bank, St. Paul
TV/TR - W HEELER was born in Kenosha, W is., in 1863, and was educated in
the K enosha public schools and the McIntyre Academy, R acine, W is. He
began his banking career as office boy w ith Dan Head & Co., Bankers, of Ra­
cine. Four years later he entered the F irst N ational Bank of Crookston, Minn.,
se iv in g as teller and bookkeeper for seven years. For three years he was cash­
ier of the Scandia Am erican Bank of Crookston, returning to the F irst N ational
Bank as cashier in 1895. H e was later elected president. In January, 1912, he
was made president of the Capital Trust and Savings Bank of St. Paul.
Mr. W heeler holds the follow ing official positions with M innesota banks,
many of which he organized: P resident F irst N ational Bank, Crookston; vice
president Capital N ational Bank, St. Paul; president F irst State Bank of B el­
tram i; president F irst State Bank of Euclid; president F irst State Bank of
Hum boldt; president W heeler-M isher Loan Company of Crookston; vice presi­
dent Citizens State Bank of Kennedy.
L ast year Mr. W heeler served as vice president of the Farm Mortgage Bank­
ers A ssociation of America, and was elected president at the last annual m eet­
ing in Chicago.

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N

o r th w ester n

B

ank er

The N ecessa ry F in a n cia l J o u r n a l
T W E N T Y -E IG H T H Y EA R

JANUARY 1923

N U M B E R 425

Broad Vision and Spirit of Cooperation
Needed in 1923
D A N J. R IL E Y , president Nebra­
ska Bankers’ Association, cashier of
the D awson Bank, D aw son:— T he
M iddle W e st faces the year 1923 con­
fident of a gradual re tu rn of p ro sp e r­
ity. T hose portions w hich depend
exclusively upon ag ricu ltu re and live
stock suffered far m ore th an any
oth er sections in the late financial
debacle. I t is not to be w ondered
that in many localities the people
are “seeing red ” and th a t in alm ost
all places they are of a decidedly
antag o n istic fram e of m ind. Im ag in ­
ary w ro n g s add them selves to real
ones and the tim e com es w hen the
populace faces its problem s w ith
m ind m ore in ten t upon w rongs to be
rem edied than upon sane m ethods o
redress.
W hile the ever p resen t duty of
keeping his house in order is the
chief concern of the M iddle W estern
B anker, now as never before should
he aid in the solution of the problem s
of his com m unity and his people
Som ew here betw een a radicalisrr
based upon class consciousness and
ignorance of economic principles and
a bourbonism w hich sh u ts its eyes
to u n p leasant facts and denies their
existence ra th e r than seeks a rem edy
for them lies the happy solution. No
w rong has y et been rig h ted by one
w ilfully unm indful of its existence.
A g re a te r spirit of cooperation on
p art of the b anker and a b read th of
vision w hich appreciates the other
m an ’s p o in t of view will go far in
assistin g th e people along the ch an ­
nels of rig h t th o u g h t.

m ethod of conducting a bank. I feel
th at it behooves all bankers to feel
their w ay carefully as conditions, to
my m ind, are far from settled. C on­
siderable proposed legislation this
w inter should be carefully w atched
and all should take an in terest in
m atters of this kind. W e should all
look forw ard for b e tte r th in g s; but
som ehow I cannot kid m yself into
believing th a t they are already here

JAM ES B. FO RG AN, chairman
of the Board of Directors of the First
National Bank of Chicago and the
First Trust and Savings Bank:— T he
year 1922 show ed little change from
1921. T h e conditions in both years
have been determ ined by the after
effects of the w ar. T h e year 1922
how ever, has show n considerable
progress in th a t the liquidation w hich
had begun w as continued and in
m any w ays b ro u g h t about a re sto ra ­
tion of norm al conditions w ithin the
country. T hus, for exam ple, the c u r­
rency situation is a satisfactory one.
and th ere is no longer any danger of
a catastrophe overw helm ing oui
banking and industrial stru ctu re. The
n atu ral resources and recuperative
pow ers of this co untry are still sc
g re at th a t to som e ex ten t it prospers
independently of conditions in the
re st of the world.
O n the whole, the E uropean situ ­
ation is m ore serious th an it was
even a year ago. T h e question of the
G erm an rep aratio n s and the in ter­
allied debts is as far from settlem ent
as ever. T h ere has been endless dis­
cussion, b u t no concrete proposals
E.
H. G E R H A R T , chairman E xe­have been b ro u g h t forw ard satisfac t­
cutive Council, Nebraska Bankers’ ory to all parties. Public sentim ent
Association, president First National all over the world is still unwilling to
Bank of Newman Grove:— 1923 is consider dispassionatelv these ques­
before us. B ankers, like others, have tions w hich are really economic
learned a lesson, the resu lts of w hich ra th e r than political. T h e prejudice
in som e cases are not very pleasant
and passions aroused by the w ar still
L et us profit by these lessons and prevail to a large extent, and they
look fo rw ard for b e tte r things. P e r­ m ake difficult in this country a re a­
sonally, I have been a pessim ist in sonable discussion of w h at to do
banking and under p resen t condi­ about the debts due us from our
tions have no reason to change mv allies and prevent, notably in F rance

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any rational consideration of p ro ­
posals to revise the financial and
economic clauses of the T re a ty of
V ersailles. L ittle im provem ent in
E urope can be expected until there
is a change in public opinion.
W e have probably progressed
upon the road to recovery as far as
we can by our ow n unaided efforts
F u rth e r im provem ents depend upon
developm ents w hich are not entirely
w ithin our control, b u t the g o v ern ­
m ent of our cou n try can accom plish
m uch if it will use its best efforts to
induce other countries to en ter into
discussions w ith frankness and g ood­
will in order to discover w ays and
m eans w hich will b rin g real peace
and prosperity to the w orld. T he
m otives of our country, how ever,
will be questioned if we ourselves
pass legislation which, to foreign
countries at least seem s designed to
prev en t th eir recovery.
A.
M. H E N D E R S O N , president
Iowa Bankers Association, Story
C ity :— O ur thou g h ts, plans, efforts
and vicissitudes of 1922 are ab out to
be shelved w ith the y esterd ay s but
not w ithout the usual— perhaps the
unusual—bequest of rich experience.
T o the rank and file this will be a
valuable legacy at th e daw n of the
b rig h t fu tu re now in evidence, p ro m ­
ising us larger opp o rtu n ities and
g re ater achievem ents th an ever be­
fore.
L.
A. A N D R E W , president Iowa
F a r m Credit Corporation, Des
M oines:— I believe we can all tru th ­
fully say th a t if 1923 show s as m uch
im provem ent as 1922 th a t it will be
quite a happy year for the bankers
of Iow a. W e m u st rem em ber that
we are still in a period of re a d ju st­
m ent and there are a g re at m any
debts in this state th a t will have tc
be paid. T he increased price of farm
products is very encouraging to a l1
those w ho have the best in terests of
our state at heart and if the m oney
(C ontinued on page 110)
P a g e E lev en

TH E N O R T H W E S T E R N

12

BANKER

Intelligent Banking Service Is
Best Way to Help the Farmer
By M ilton L. Erickson
Cashier the Lake City Bank of Minnesota, Lake City, M inn.

A W abasha County Dairy Farm

N COM M ON with other bankers,
it has been our experience that
the dairy farm er is the best credit
risk. W hile other farm ers were re­
newing their notes with interest added,
the dairymen were steadily reducing
their bank obligations. It has been
our policy, no m atter how “tight” the
money market, to loan freely for the
purchase of good dairy stock.
W abasha County has not been a
great dairy county, and pure bred
dairy animals have been few. The
first effort to bring pure bred dairy
stock into this community was made
about eight years ago by E. J. Trosper, who was then agricultural super­
visor at the Lake City H igh School.
He organized a boys’ calf club at Oak
Center, a farm ing community near
Lake City, and brought in about twen­
ty-five pure bred Holstein heifer
calves, from four to twelve months
old, from southern Wisconsin. These
were sold on time to the boy members
of the club. The plan was financed
by the banks of Lake City, who asso­
ciated for the purpose. The pure bred
calves which were then brought into
the community were the means of
starting several good herds, which are
still being built up, and which are a
practical demonstration of the in­
creased profits resulting from raising
pure bred stock.
Mr. Trosper left for a larger field
of work shortly after the organization
of this calf club, and further work in
calf club organization which had been

I


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planned was not carried out for lack
of the right leadership, and no wide­
spread and organized work was done
to increase the number of pure bred
animals. There was, however, a con­
tinuing and increasing interest in im­
provement of dairy herds and in the
purchase of pure bred animals.
In 1921 Mr. W alter I. Bargen of
Mountain Lake, Minn., was employed
as agricultural director at the high
school.
Through his efforts the
breeders of pure bred live stock in this
vicinity put on a sale in January of
this year. It was a three day sale, the
first day dairy animals, the second day
beef, and the third day hogs. Pure
bred beef cattle and hogs were plenti­
ful, but it soon became apparent that
practically no dairy animals would be
offered by local breeders. The con­
signment of good stock from outside
sources was badly needed, both for
the success of this sale and the devel­
opment of our dairy industry. W e
were cooperating with the sale com­
mittee, and were very much concerned
over the situation. W e offered to buy
from outside breeders as many animals
as in the opinion of the committee
would be needed to make the sale a
success and to consign them to the
sale. As a result, W illiam A. H ub­
bard, president of the Lake City Bank
of Minnesota, accompanied by Mr.
Bargen and R. W . Bennett, county ag­
ricultural agent, visited various breed­
ers of good dairy stock in southern
Minnesota, and bought a total of

Jan u ary , 1923

twenty-two animals, most of which
were heifers bred for the first time.
The cattle arrived here several days
before the sale and created consider­
able in terest. T h e anim als w ere p u t
up at the sale for whatever they would
bring. W e set no price on them, nor
did we have anyone bid for us. In
spite of the unfavorable financial con­
ditions, the bidding was brisk, and the
result was that the animals were sold
at about the same average price as we
bought them at.
W e were out the expense incident to
bringing them to Lake City and our
share of the sale expense. This was
a considerable amount, but in return
for our outlay we know that our ac­
tion will result in material benefit to
the people who bought the stock, to
the community at large and to our­
selves. W e now know without ques­
tion that the farm ers who attended the
sale are progressive, know values, and
are bound to improve their incomes,
increase their net worth, and be more
profitable customers for us.
O ur policy toward rendering assist­
ance in improving the dairy business
in this territory we aim to make a con­
tinuing one. W e do not believe in try ­
ing to convince any farm er against his
will to buy expensive stock. He may
not be properly equipped nor have the
natural ability or inclination to make
money out of the stock, in which case
loss and dissatisfaction will result. But
we have plenty of evidence in our own
office that, properly handled, profits
are better and surer in raising good
dairy stock than in other lines of farm ­
ing, and where a farm er is convinced
of this from his own observation, we
like to get next to him and give him
all the moral and material encourage­
ment we can.
W e think there is too much misdi­
rected “help the farm er” stuff on the
part of bankers and other business
men ; too much trying to tell the
farm er how he ought to run his busi­
ness by people who know nothing
about it. The average farm er knows
his own business best, and if his m eth­
ods are wrong, he will soon discover
it by comparing his own results with
his neighbor’s who is doing things in
a better way. The average farm er is
progressive. Some few, of course, be­
lieve there is no chance for improve­
ment over the way they have always
done things, but they are not worth
considering.
The only way the banker can really
“help the farm er” into more progres­
sive and profitable farm ing is to give
him ample and intelligent banking
service when he has convinced him­
self, and to offer him the benefit of his
experience with the real progressive
farm ers of the community.

Jan u ary , 1923

TH E N O R T H W E S T E R N

BANKER

13

Banking Is Just Business—And Not
Glorified Business at That
for that reason the part of the American bank in world rehabilitation
is clearly the business part
By G. A . O' Reilly
Vice President Irving National Bank, New York City
A N K IN G is just business—not
glorified business, not a refine­
ment of business, not business
enshrouded in mystery or disguised in
terms unfam iliar to the business world
—although unfortunately this impres­
sion is frequently suggested in the at­
titude assumed by both business men
and bankers—but just plain, ordinary,
every day business. It is the sort of
business which should be easily under­
standable to the producer, the m anu­
facturer, the distributor, the engineer
— indeed, to any man who has had ex­
perience in what we call business, and
who is fairly familiar with the meth­
ods and reasoning employed in the
business world.
Banking is business from start to
finish— business in its origin, in its de­
velopment, in its responsibilities, in its
problems, in its rewards, in its penal­
ties, in its limitations.
There are people in the world, the
number fortunately is growing less
daily, who seem to believe that in some
mysterious way the bank is removed
from certain of the difficulties which
normally beset the pathway of busi­
ness. Personally, I could almost wish
they were right.
It would make
things much easier for us bankers.
Then, too, there woulc| be that desir­
able distinction which always attaches
to the fact of being “unusual,” “differ­
ent.” But it would be bad for bank­
ing, and worse for business, if it were
so. W e are all in the same boat. And
the man in banking who disregards
the customary precautions against
rocking the boat will develop about the
same kind of popularity which usually
comes to the man in any line of busi­
ness who behaves similarly.
The bank, like any other business
institution, m ust work its passage
throughout and be governed by the
rules of the game, or else be in diffi­
culty constantly. If it over-extends,
if it pays too much for what it gets, if
it allows its faith in human kind to
wander too far beyond the caution
suggested by common sense, if it loses
sight of the fact that two and two
equals four, and that cause and effect,
income and outgo, supply and demand
bear certain definite relations to each
other, then the bumps will be felt, and

B


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they will be exactly the same kind of
bumps with which men in almost every
line of business are familiar.
There is little of the professional
about the bank of today—that is,
about the commercial bank. In its
best form it is a business institution.
If the banker is not a practical busi­
ness man who can speak the language
of business, and meet business men on
their own ground, and see business
m atters from the business point of

“The popular picture of the banker
up front, riding upon some inspiration,
leading the business of his country out
of darkness, is very flattering to the
vanity of the banker, but not flattering
to the intelligence of the community.
The real picture, the one with which
we bankers are most familiar and with
which business men, and men in the
professions might well, secure familiar­
ity, is of a hard worked man, holding
a job, wondering how in the world he
is going to be able to run his bank or
department or job, so as to keep fairly
well up with the business procession
—not at its head, necessarily, but some­
where along the line.”
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view instead of from some professional
banking point of view, he is nearly
sure to find himself out of harmony
with the existing order, and the stock­
holders of his institution will be un­
fortunate. Many of the most serious
problems which come to bankers these
days essentially are those of business,
not the business of banking, but the
business of business. The banker’s
principal work is to help keep the boat
of business steady in its course, to
help avoid the dangers on ahead, and
then, when trouble comes, if it does
come, to help find the best way out.
Loaning money, discounting commer­
cial paper, buying and selling ex­
change, and the other conventional op­
erations of banking as it was, are sim­
ple and easy compared with the prob­
lems of business which form the daily
burden of the average modern com­
mercial banker.
This attitude, the taking on of this
new color of business responsibility on
the part of bankers, is not in the least
because they are good fellows, or phi­
lanthropic, or generous, or anything

of that sort. A particular banker may
be all of these, but plain common sense
and realization of the spirit of mod­
ern banking should be sufficient to
make him recognize and respond to
the service demand which modern
business is sure to make upon him.
Nor should the banker of today be
included in the special class occupied
by the lawyer, the doctor, the spiritual
advisor, and the undertaker. This is
an eminently respectable class, but the
banker belongs elsewhere.
Neither
should be treated as a last resort. His
best possibilities of helpfulness to
business are to be found in a familiar­
ity with the movements of business,
with its ups and downs, from begin­
ning to end. He sometimes is called
upon to perform m ajor ^operations in
business, but he much prefers those of
a m inor nature, or even simple restor­
ative treatment, and is at his best in
diagnosing cases in their earlier stages
of development, or possibly, in giving
healthy advice before the case has de­
veloped at all.
W hen the business man of today
brings his problems to the bank for
treatment, it is not enough for the
banker to look wise and wealthy and
mysterious, and talk in terms of tech­
nical finance, and other terms beyond
the scope of business. If he is wise,
he will get right down to brass tacks
at once, and talk business. If he is
not ready to do this, there should be a
fine chance for some other bank to se­
cure a new account.
My purpose in dealing somewhat ex­
tensively with the nature of the bank
and its relation to business generally
is to show that in world rehabilitation
the banker’s place is simply that of a
business man, and his responsibilities
are in no way unusual—just the re­
sponsibilities that grow out of the fact
that he is one of a number of units
which combine to run the machine of
business. It has become all too com­
mon these days to speak of the banker
as a “leader in public thought,” to ex­
pect him to shoulder more than a busi­
ness m an’s share of the responsibility
in it all. “P ut it up to the bankers,”
and “W hy don’t the bankers do some­
thing?” and a number of other ex­
pressions to the same general effect

TH E N O R T H W E S T E R N

14

have been handed about so generally
and accepted by some of our bankers
so cheerfully as to develop in the av­
erage citizen an unfortunate disposi­
tion to sit back and be willing to fol­
low in a movement in which he should
bear a large measure of the burden of
leadership.
It may be said, and reasonably, that
in the disturbed areas of the world to­
day the difficulty is one of statesman­
ship, or politics, or ethics, or men’s
hearts, or lack of vision, or of realiza­
tion. But each of these is only a de­

BANKER

tail which, if right, will help the busi­
ness movement onward, and if wrong,
will hinder it. And if all of these
were right, which they are not, and
could be depended upon to remain in
that condition over a reasonable pe­
riod of time, there would be no prob­
lem of world rehabilitation, and we
could turn our minds to some more
pleasing and profitable class of sub­
ject. Then nations would realize that
their best interests are to be found in
peace, “not the peace of pacts and
treaties, but peace that springs from
the spirit of peace.”

Jan u ary , 1923

W hat is the part of the American
bank in world rehabilitation? Clearly
the business art—and that a part
which only the developments which
come with time can make effective.
The American who nervously insists
that we “do something” is just as un­
reasonable as the European who re­
fuses to create a condition of things
which will make it possible for any­
one to “do anything.” And both lose
sight of that fact of merely twentyfour billion American dollars already
contributed to tbe cause of “doing.”

A Bank Director May Be an Asset or a
Liability, Say Bank Examiners
Directors’ Advice Should
Be Requested
By E. M. Hood
South Dakota State Examiner, Winner, S. D.

I

N MY opinion, a director’s most
important responsibility is to see
that the banking laws are obeyed. I
feel that the only way that this can be
properly accomplished is by weekly,
or at least semi-monthly, conferences
with the officers for the purpose of
discussing thoroughly the business
transacted by their bank.
The average board of directors
could be of great assistance to their
bank if their advice and counsel was
asked for. My experience would in­
dicate that too many country banks
are “one m an” banks, and directors
are not asked to cooperate. In a great
many cases their advice is not wanted.
This could be corrected to a certain
extent by requiring directors to have
a greater financial interest.
It appears to me that a bank is a
semi-public institution and it is diffi­
cult for one man to alone develop his
bank to the highest point of service,
and it is only through the highest
service to its community, duly con­
trolled by the banking laws and the
laws of credit, that the bank reaches
its highest success and the goal for
which it is intended.

How the Directors Help
The Examiners
By F. S. Barber
South Dakota State Examiner, Onida, S. D.

M O D E L bank director first
studies the laws relating to bank­
ing (especially the law referring to
his duties), and the by-laws of his in­

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stitution. A pamphlet copy of the
banking laws is usually to be found in
the bank.
He gives the affairs of his bank the
same active consideration and busi­
ness-like supervision which he gives
his own individual undertakings and
property. H e selects honest, able and
suitable officers and employes to han­
dle the bank’s business, pays them a
decent salary, sees that they are suffi­
ciently bonded, and is assured that all
departments of the bank are properly
managed. If he finds that an officer
is incapable, derelict or unsatisfactory
he makes a change just as soon as pos­
sible. Most of the serious troubles of
banks are due to unfitness of officers.
The director outlines policies at
regular meetings and keeps tab on the
details to see that they conform. He
passes upon every unusual and every
unusually im portant m atter before it
is closed. H e carefully examines all
the assets and securities and makes
needed suggestions. H e has the books
audited, watches the profit and loss ac­
count, builds up a good surplus in
preference to paying large dividends,
prevents undesirable transfers of
stock, and does not permit question­
able assets put in for capital stock
transactions.
He endeavors to have his bank serve
all its patrons equally well and not run
for the benefit of a few favorites. He
avoids taking a flyer on anyone and is
careful to keep well within the law in
every particular. H e does not use the
bank for his own convenience. He
considers the interests of the patrons
and the interests of the bank of equal
importance. H e counsels honorable,
straightforw ard practices rather than
shrewd maneuvers. H e knows how

to distinguish between quality and
quantity.
A model director has character,
breadth, experience and business abil­
ity. He is impelled by a somewhat un­
selfish concern for the institution and
its patrons. Reciprocally the patrons,
business people and generous public
hold him in warmest esteem.
Banks governed by such directors
are the highest business adornment of
their communities and the pride of
their patrons. It is remarkable how
far their good reputation travels.
The bank examiner, having finished
his visit with a directorate of such
men, crosses the threshold on his way
out with a feeling of exultation akin
to worship.
f C redit
C redit is based on integ rity , on
accum ulated property, and on a
m an’s ability to earn or m ake w h at
is necessary to pay. A m an m ay be
perfectly honest and y et enjoy lit­
tle or no bank credit because he has
not show n the bank th a t he is
w orthy of it. T h e first essential is
to be honest, and the nex t is to con­
vince the other m an of it. B ut th a t
is not sufficient—he m u st convince
the other m an th a t he can use credit
wisely. T h ere is only one w ay to
do th at, w hich is to get credit and
use it w isely.— N ational Stockm an
and F arm er.
E conom y is near to the keystone
of ch aracter and success. A boy
who is ta u g h t to save his m oney
will rarely be a bad m an or a fa ilu re ;
the m an w ho saves will rise in his
trad e or profession s te a d ily ; this is
inevitable.— G ladstone.

Jan u ary , 1923

TH E N O R T H W E S T E R N

BANKER

15

No Klondike Rush Back to the Farm
Until Conditions Are Improved
Proper extension of credit to farmers enabling them to purchase pure bred
cows and pigs will help both banker and his clients
By Geo. T. McCandless
“ The M an Behind the Counter ’
H E R E ’S a heap of difference
betw een being rig h t and alm ost
right. T h e little girl th o u g h t
she o u g h t to have a t least tw o
guesses w hen asked the spelling of
a w ord. H er fath er told her there
w as no half-w ay place; th a t the
spelling w as rig h t or w rong. And
so it is w ith the credit d ep artm en t
of a m odern b an k ; ju d g m en t on a
loan is likely to be all rig h t or all
w ro n g — no half-w ay ground.
No ban k er can be rig h t all the
tim e, alth o ugh it has been m y pleas­
ure on tw o or three occasions to
m eet one who said he had never
had to charge out a dollar since he
had been in business.
I reserved m y opinion, how ever.
In m y h ea rt I th o u g h t he either had
not done m uch business or was pay­
ing a slig h t trib u te to m y c re d u lity ;
I w ondered if m y head looked as if
it lacked a “ Room to L e t” sign.
M y fa th e r w as an old fashioned
co u n try d o c to r; not one of the m od­
ern kind w ho has his bills sent out
by an efficient office girl the first
of every m onth and collects 90%
of them . H e w as one of those who
took cord-w ood, oats, corn, hogs
and occasionally horses in settle­
m ent, never forcibly b u t at the re­
q u est of his patients, I w ould add.
O n his co u n try trip s I used to go
w ith him for com pany and he con­
fessed to me th a t the successful
physician w as the one who guessed
rig h t th e g re atest num ber of tim es.
H e practiced for fifty years and told
me th a t as he grew older the less
m edicine he prescribed.
So I th ink our m ost successful
b ankers are the ones w ho “guess
rig h t” the g re a te st num ber of tim es.
N one can guess rig h t every tim e,
as to w h eth er or not it is safe to
extend the credit asked for and we
cannot expect perfection in this re­
spect.
L ittle Jo h n n y w as asked by his
teach er “H ow m uch is tw o and
tw o ?” and Jo h n n y answ ered “ F o u r.”
“V ery good” the teacher com m ent­
ed and Jo h n n y bristled up and said,
“V ery g o od?” H ell— it’s p erfect.”
If bankers could feel this w ay w hen
ju d g in g a piece of paper it w ould

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;be a g re at life. P ro p e rty sta te ­
m ents and m ortgages are neces­
sary, b u t how can the hum an equa­
tion be solved every tim e?
T he
process of deflation rapped the
country banker sharply across the
knuckles.
E verybody w as ap p ar­
ently m aking m oney. T he farm ers,
the m erchants and professional men.
E verybody had a job at good w ages
and life looked like a gran d glorious
crim son sunset. J u s t w hen every­
th in g looked lovely we woke up and
in n iiiiu iiiiiiiiiiiiiiiiiiiiiim iiiiiiiiiH im uiiiiiiiiiiiiiiiitH iiiH iiiiiiiH iuu iH u iiiM iim iiiiiiiH iiim im uiiiim iiim

“One of these days there may not he
enough jobs in the city to go around.
Then the boy who lives in the country
and has some good stock can ‘sit in’
with his radio set and laugh at the poor
boobs in town who are spending all
they make for board and room and
clothes. Then the farmers will have
conventions and discuss how they can
help those poor deluded city folks.”
iim iim uum m umuiiiimim immmim muiuumuiiUHiu im im iiim iiuuuiu iiiiimm niiiiimiinmiiiiiiiuH

found it w as a dream and instead of
dream ing we are having difficulty in
g e ttin g a sound sleep any more.
I t is not my purpose to go into de­
tails and rehash the drop in prices of
all the farm er had to raise. W e
can’t blam e the farm er for raising
one th in g he can alw ays raise w hen
things do not go to suit him . One
of our new ly elected “d irt fa rm ers”
w ho has been presented w ith a governship has stated to the press th a t
the average farm er’s net incom e for
1920 w as $185, out of w hich the
farm er m u st educate his children,
pay his church and hospital bills,
provide his am usem ent, repair his
buildings and pay off or reduce the
load of indebtedness w hich he has
w ith the m o rtgage com pany or he
bank. H e c o n tin u e s: “ Can anyone
w onder th a t the farm er is crying
out for low er taxes, for b e tte r credit
facilities, for low er freig h t rates and
for som e m easure of relief from the
profiteer ?”
H e also called atten tio n to the re­
cent huge stock dividends of some
of our leading corporations and
a d d s : “Do you w onder th a t th ere is
discontent, w ith a m easure of ra d ­
icalism , reported in the lan d ?”

Now I am ju s t w ondering, if we
had a fully developed branch b an k ­
ing system , if the average farm er
could g et w h at accom m odations he
gets now from independent in stitu ­
tions from the big b an k ’s local
branch. I t is a delicate q u e s tio n :
the bank w hich has been m ost lib­
eral and tried to be the m ost helpful
is the one w hich is h ard est-u p and
is being com pelled to borrow and
rediscount the heaviest, w hile the
tig h tw ad banker w ho dem ands his
pound of flesh is ap p aren tly “sittingp re tty .” Y et we will adm it th a t
now is the tim e for every ban k er to
inquire as to the ability of th e b o r­
row er to repay a t a fixed tim e ; it
m ay be ju st as well to consider a
ch aracter loan a little b e tte r if fo r­
tified w ith a chattel m ortage.
No country banker will deny th a t
all prosperity depends on the p ro s­
p erity of the farm er and I believe
th a t the rank and file of A m erican
bankers are doing th eir u tm o st to
bring about b e tte r conditions for the
arm er and y et p erhaps not en tirely
from an altru istic standpoint.
I t has been said th a t the b est w ay
to help a m an is to help him help
him self and th a t is the a ttitu d e we
should take w ith our farm er cus­
tom ers. O ne w ay this can be done
is to boost the form ation of calf and
pig clubs. T h e day of the one-crop
farm er is seeing its settin g sun.
I w as out in the N o rth w e st last
year and driving over the co u n try
I w ould see. num erous little settle­
m ents on cut-over land and asked
m y banker friend how these settlers
could m ake a living. H e replied :
“ Did you notice th ey all had good
cow s? R ig h t th ere is the an sw er.”
A nother banker friend in the W e st
told me he knew people in his
county w ho did not see a real piece
of m oney from one y e a r’s end to
another b u t lived well on the p ro ­
ceeds of m ilk, eggs and b u tte r sold
to th eir local stores and exchanged
for clothing and o ther necessities.
T he dear old back-to-the-farm
m ovem ent isn ’t going to develop
into a K londike rush till conditions
for the farm er are im proved. P e r­
sonally, I th in k th a t proper exten-

16

TH E N O R T H W E S T E R N

•sion of credit to farm ers to enable
them to stock th eir farm s w ith pure
bred stuff will be a m ore practical
step in the rig h t direction th an any
th a t m ay be nam ed. I t has been
clearly show n th a t a pure bred cow
or pig will tak e on m ore w eight on
a stip ulated ration than a scrub will
and is cheaper in the long run. 1

BANKER

am glad to see th a t this m ovem ent
is grow ing and the calf and pig
clubs are the best answ er as to how
best the banker m ay help his farm er
custom ers. O ne of these days there
m ay not be enough jobs in the city
to go around. T h en the boy who
lives in the country and has some
good stock can ‘‘sit in ” w ith his

Jan u ary , 1923

radio set and laugh a t th e poor
boobs in tow n w ho are spending all
they m ake for board and room and
clothes. T hen the farm ers will have
conventions and discuss how they
can help those poor deluded city
folks. A nd th ere m ay be m ore tru th
than poetry in that. W ho know s?

The Bunk About Wage Slaves
By Dr. Frank Crane
H E W A G E System has been cursed
by every tyro in reform . W e have
heard talk of wage slaves, and the scream
that their condition is little better than
that of pre-war negro slaves. Indeed, some
say they are worse off, as the slave was
cared for by his m aster and felt he was
one of the family, while the wage-master
is cold, aloof and heartless.
All this is pure bunk.
You can easily prove that it is by ask­
ing any hired man how he would like to be
bodily owned by his boss, as was Uncle
Tom.
To do an honest job for money is the
most equitable and the decentest way of
doing it.
You can prove this by your instincts.
W hen a man approaches you with a propo­
sition, and says he does not want any profit,
his soul is above money, and he is actuated
by altruism, you punch the button signaling
the house detective to keep an eye on him.
You only do business with satisfaction with
any man when you see clearly that he is
going to make a profit.
W hoever tries to get something for noth­
ing is a cheat. Beggars are nuisances and
the worst type of menace to the poor. It
is an open question whether most bene­
volence, money doling and all gifts do not
create more harm than good.

T

The one transaction that is clean as a
hound’s tooth, square and solid in the eyes
of men and wholly acceptable to God, is
to pay a man an honest price for his labor
or his goods.
America is founded on the wage-system.
It is the corollary of democracy.
It was not devised. It grew. It is a
process of evolution.
It is the best way we have found so far
in which one free man can serve another
and lose none of his manhood.
It has its drawbacks, because humanity
has its imperfections, and it is human.
C rafty employers will underpay workers,
and lazy workers will swindle employers
in all probability to the day of judgment.
Get the buying and selling and wages of
the world equitably arranged, and thou­
sands of laws would disappear from the
statute books, hundreds of charitable or­
ganizations would close their doors as no
longer needed, fantastic economic theories
would vanish as thin clouds, the capital
letters of Capital and Labor would be per­
manently replaced by lower-case and the
industries of the world would bound for­
ward as if touched by a magic spur.
Be fair, and you will not need that any­
one urge you to be kind.

C o p y r i g h t , 1922, b y D r . P r a n k C r a n e .


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Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

17

Investment Bankers Close a Successful
Year and Face 1923 with Confidence
The bond market is in shape to warrant the prediction of sustained
and healthy upward movement during the year
By Leslie Hanson
Investment Editor Northwe stern Banker
N V E S T M E N T bankers are look­
ing* fo rw ard to the new year
w ith confidence and assurance.
Y ear end d isbursem ents, in the w ay
of in terest, redem ptions, C hristm as
savings clubs, and sim ilar th rift
funds this year ag g reg ate w ell over
a billion dollars and this should have
a profound influence on th e securi­
ties m arkets. A t least half a billion
is estim ated to be available for re in ­
vestm ent, and it is alm ost a cer­
tain ty th a t the bond and stock m ar­
kets will be benefically influenced by
purchases to m eet these req u ire­
m ents.
T h e inv estm ent w orld has ju st
closed one of its m ost successful
years. T h ro u g h o u t m ost of the year
th ere has reigned an excellent de­
m and for securities, th a t a t tim es
took on proportions as to seem in­
satiable. T his held rig h t up to N o­
vem ber w hen the first slackening de­
veloped, due to the depressed m ar­
kets caused by incom e ta x selling,
w hich caused a g lu t in th e m arket
th a t has n o t y et been entirely elim i­
nated. D ealers on the w hole, how ­
ever, are in h ealthy condition and
d u rin g D ecem ber have taken on new
lines of securities to m eet the J a n u ­
ary 1 requirem ents.
In general the dem and for m oney
at th e banks, although definitely
increasing, rem ains m oderate, except
in certain spots w here industries
th at have g o tten into full sw ing are
borro w in g on a large scale. T his
leads to in tere stin g com m ent by an
au th o rity in th e east w ho m akes a
stu d y of the m oney factors influenc­
ing th e course of security prices.
“T h ere is a v a st reserve supply of
cred it,” he says, “in th e F ederal
R eserve banks, w hich m ight prove
an aid to dangerous inflation, b u t the
lessons of 1920 w ere fairly w ell com ­
m itted to m em ory. L oans and dis­
counts of the F ederal sy stem ’s m em ­
ber banks are about w here they w ere
a year ago.”
T h e inv estm ent of national banks
in securities am ounted th e year be­
fore the w ar to som ething over a
billion dollars. T hese investm ents
steadily increased until by 1919, on

I


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Federal Reserve Bank of St. Louis

ing back of those sellers who liqui­
dated d u rin g N ovem ber and early
Decem ber, for th e purpose of reco rd ­
ing incom e tax losses. T h e sh ak e­
out has p u t bonds in stro n g hands
and the un d erly in g position of the
m ark et as a w hole is sound.
It is fitting at the close of the year
to consider w h a t the bond m arket
has done the last year. R eview s
alw ays are tim ely, and serve to
p o in t to some degree to w h at m ight
be expected in the future.
.........................................................................................................................................................timmim
T he m ajor upw ard sw ing in bond
prices th a t was in au g u rated during
“On the whole, the bond market is
in excellent technical shape and in posi­
the m iddle of 1921 continued u n in ­
tion for a sustained upward movement,
terru p te d for fifteen m onths rig h t
which has already started and should
th
ro u g h the fall of 1922. T h is long
gain great impetus in the January buy­
period of advancing prices com pleted
ing for new investment, reinvestment
and buying back—by those sellers who
the in v estm en t cycle started in N ov­
liquidated during November and early
em ber, 1919, w hich m onth m arked
December, for the purpose of recording
the beginning of a long period of
income tax losses. The shake-out has
liquidation in the in v estm en t m a r­
put bonds in strong hands and the un­
derlying position of the market as a
ket.
whole is sound.”
D u rin g the first half of 1922, the
iimiiiiitmiiiimmiiiiiiiiimtimiimiiimiiiiiiiniiimmiiinitiimiimiiuiiimmiiiMiiiHiHiniiiiiiimiiiMniiimi
situation w as practically the sam e
as prevailed in 1921, nam ely, acute
about 29 per cent of the to tal earn ­ business depression and deflation.
ings assets of the national banks. M oney overflowed from the banks
T h e p ro p o rtio n held by co u n try to the inv estm en t m arket, creatin g
banks is larg er by ab out one-third, an excess supply th a t m ade record
as related to th eir assets, th an the low interest rates, w hile com m odity
p ercentage held by reserve and cen­ prices, w hich reached th eir peak in
tral reserve city banks.
1920 fell faster th an they had p re ­
T h e effect upon prices of bonds is viously advanced. T hese conditions
to be considered in case business de­ stim u lated the bond boom th a t came
m ands increase heavily and banks
to a h alt a few m onths ago, T he
are induced to sell som e of th eir se­ checking of deflation and the begin­
curities to supply this dem and, b u t ning of a new period of expansion
th ere is so large a m argin of supply effectively stopped the advance in
of credit th ro u g h the g re at surplus bond prices and caused the reaction
reserves of the F ederal R eserve in the m arket in the last three
banks, available for rediscount, th a t
m onths of the year.
th ere is little pro b ab ility th a t the
T h e bond m ark et did not actually
p resen t era of business activ ity will
feel
the effect of business com peti­
enlarge to such an ex ten t as to m ake
it necessary for banks to sell securi­ tion until Ju n e although bank
ties.
T h is presupposes th a t no clearings had been expanding and
wild, speculative inflation in com ­ b o rrow ings a t the reserve banks in­
m odities, such as m arked th e 1919 creasing. C om m odity prices tu rn ed
up in M arch and m ore pronouncedly
m ovem ent, will tak e place.
On th e w hole th e bond m ark et is in June, b u t the bond m arket was
in excellent technical shape and in n o t affected until Septem ber, the
position for a sustained upw ard dow nw ard m ovem ent being forced
m ovem ent,
w hich
already
has th ro u g h gov ern m en t financing and a
sta rte d and should gain g re at im ­ rise in m oney rates.
J u s t w hat happened can be seen
p etus in the Jan u a ry bu y in g for new
(C ontinued on page 43)
investm ent, rein v estm en t and b u y ­

Ju n e 30 of th a t year, they reached a
little less th an five billion dollars.
D u rin g the deflation period they de­
creased. A year ago they w ere
around $3,400,000,000 b u t are now
at $4,540,000,000.
A bout half of
these securities are governm ent ob­
ligations. D uring the p ast tw elve
m onths the holdings of banks in
other securities than governm ents
have increased $178,000,000. T hese
securities investm ent am ount to

18

TH E N O R T H W E S T E R N

BANKER

Jan u ary , 1923

A Business Man Tells: Why I Go to My
Banker with My Troubles ’
1he banker is in a position to guide his customers; he has the greatest
opportunities for a general experience”
By J . F . Coupe
A N K IN G is the premier busi­
ness. It stands at the head of
the list of all so-called business
institutions. It is the “business of
businesses.” I recall a personal ex­
perience which has always stuck
vividly in my mind. I worked for a
little over a year as an assistant
cashier of a country bank. I wanted
business training and I got it. I se­
cured the position through a friend
of the family who had been a success­
ful hardw are merchant. H e said to
me one day, “There is just one busi­
ness that is rated higher than the hard­
ware business, and that is banking; so
when I was offered the position of
president of this bank I accepted
readily.” This man proved worthy of
the promotion.
My father and I
talked over most of our troubles with
him.
If a business man is considering
making an investment, starting into
business or even expanding his
present one, it will stand him
well in hand to consult his banker.
He is better posted
than
the
average man may think, for he
is in close touch with all of the
conditions of the entire community
and in position to render valuable as­
sistance. Many a young man has been
guided away from the rocks of un­
certainty or failure by doing this.
Following that spurt of farm ers’ pros­
perity a few years ago, a young farm er
come to his banker at Breda, Iowa, in
company with a rather suspicious,
appearing gentleman, and asked the
banker to give him his liberty bonds
which were left for safe-keeping. In
a quiet unassuming way the banker
asked the young farm er to step into
his private office. A confidential chat
ensued.
T hat uninitiated would-be
rich m an heeded the advice and re ­
tained U ncle S am ’s notes in place of
trad in g them for w orthless “bluesky.” Iow a people, especially farm ­
ers, to day w ould be m illions of dol­
lars ahead had th ey consulted or had
their bankers “butt-in” as my friend
at Breda did.
The average banker, particularly the
so-called country banker, is looked up­
on as a public servant working w ith­
out pay. If it is a Red C ross drive
he must take the lead. If the town

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is going to make some new improve­
m ents, like paving, sew age disposal,
electric lights, w ater extensions, etc.,
he m ust give freely of his time, and
head the lists of all donations and
contributions. In many instances the
bank serves not only as a clearing
house for checking accounts, but a
clearing house for community activ­
ities. It is that willingness to serve,
that desire to promote the general
welfare which makes him the friend
of all. Many are the family disputes
that are quietly ironed out through
his tactfulness and knowledge of
human nature.
The banker who does not measure

up to the standards suggested here
will not likely attain the success he
should, for the ideals are there and
the individuals and the community
anticipate the results.
To business men and farm ers I
would say,—W hen troubles cross
life’s pathway and you feel the need
of consulting some one, don’t forget
your banker. You will find that his
business is of such a type th a t he
is in a position to guide you for
he has had th e g re atest oppor­
tu n ities for a general experience,
and w ith it all is th a t superb desire
to be of service. T ake you r troubles
to your banker.

Insurance Increases Bank Credit
A local m an u factu rer in a certain
large city w as politely b u t firm ly re­
fused an additional loan last m onth
by his banker because he had b o r­
row ed already the full am ount th a t
the banker th o u g h t he should have.
E ven the fact th a t the m an u factu rer
had sold his p ro d u ct a t a big profit
failed to g et the accom m odation. All
the ordinary arg u m en ts w ere used
w ith o u t avail. F inally the applicant
m entioned in a casual w ay th a t he
had ju st bo u g h t a policy for $10,000
life insurance. T h e w ords acted like
m a g ic ; the b a n k e r’s w hole a ttitu d e
in stan tly changed, and in a few m in­
utes the req u est w as granted, the
policy being assigned to the bank.
T h is real experience is typical.
B usiness m en everyw here are find­
ing the w o rth th a t life insurance
“collateral” has in the eyes of the
up-to-date banker.
H ere is an o th er illu s tra tio n : One
of our W e ste rn agents w as lunch­
ing last week w ith tw o friends, a
co n tracto r and a banker. T h e con­
trac to r tu rn ed on life insurance, and
the ag en t told the co n tracto r th a t he
th o u g h t $10,000 insurance ought to
be added to his line on account of
the im pending expansion of his b u s­
iness th ro u g h the com ing of b etter
tim es. T h e co n tracto r dem urred,
and the agent cam e back w ith one
brief re m a rk : “ If this policy does
nothing else, it will increase your
credit w ith y o u r bank, and you are
likely to need big financial assist-

ance very sh o rtly .” T h e banker at
the table joined the conversation at
this point w ith the brief b u t sig­
nificant rem ark : “W h a t our friend
states is absolutely tru e .” N o th in g
else w as said, b u t the ultim ate ef­
fect w as satisfactory to the agent.
As a m a tte r of fact, a m an ’s finan­
cial ra tin g by his bank is often
strengthened m ore by a large policy
payable to his estate th an by some
custom ary form s of security.— New
York Life B ulletin.
A. B. A. Issues Booklet
T he A m erican B ankers A ssocia­
tion has issued a booklet settin g
forth the h isto ry and developm ent
of the organization and describing
its p resen t stru ctu re, services and
aims. Copies of this book are avail­
able on request.
Buck Up!
So m any of us take the flabby a t­
titude tow ard life. W e dodge, we
hedge, we think of the th in g s we
m ig h t do and we don’t g et those
things done or we get them half
done. W e cultivate the habit of le t­
ting ourselves drift. T h en we w on­
der not only w hy we don’t accom ­
plish m ore b u t w hy we don’t feel
better. W a y dow n deep in every
one of us th e re ’s a censor th a t looks
on and notes our failures and dis­
approves and asks scornfully why
we aren ’t stan d in g up in our boots
and m eeting life squarely.— Craddick B ank D irector.

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

19

Good Roads Are Worth the Cost to the
Farmer and to the (Community
Government and private investigations have disclosed the permanent economic
and social advantages of permanent highways
B y M iss Gladys Pitre
Opelouas, Louisiana
H E subject of road improvement
is one that has been given seri­
ous study by all progressive peo­
ple on the earth since the earliest
days, and it is only today that the
question of good roads has been
brought into politics and consequently
into history. Perhaps the most out­
standing example of countries that
built perm anent roads can be found
in that of Rom e; and it was quite
possible before the Great W ar to
drive an automobile over the original
road bed of the old Appian W ay, a
highway constructed for the armies
of m arching Romans in the early days
of the Christian era.
One of the best illustrations of
the indirect economic advantages made
possible by road improvement is the
increase in the value of farm land
where^ this improvement has been ac­
complished. A good road improves
the site value of a place and makes it
many times more attractive than it
formerly was. A prospective buyer
would see the situation of the farm
ideal. He would see that it has im­
mediate access to schools, markets
and churches, besides having an at­
tractive setting.
If one would make an intense study
of the increase of land value in
'several districts, he would learn that
following the improvement of the main
m arket roads the increase in the price
of tillable land has amounted to from
one to three times the cost of the
improvement.
Besides helping the farm ers in the
aforem entioned ways it also encour­
ages them to make their own homes
more attractive, to obtain a better and
purer breed of livestock and, what is
infinitely more satisfying, to give more
attention to scientific and modern
methods of farming.
There is a direct relation between
the roads of a country and its agri­
cultural conditions. Farm ing is the
most essential and most supporting
occupation any nation can have. The
importance, power, and wealth of a
government is depicted by its agricul­
tural products; and good improved
roads encourage this vocation. Bad,
impassable highways limit farm ing

T


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iiiiiniitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiitiiiiiiiiiiitiiiitiiiiiiiinitiiiiiiiiiiiiiiiiiiiiiiitiiiMiiiiMiiiiiinimiiiiiiitiii

Miss Pitre won a prize offered by the
Interstate Trust and Banking Company,
of New Orleans for the best essay on
good roads written by a high school
pupil in Louisiana or Mississippi. This
article, which is taken from her essay,
presents an excellent case for Good
Roads. The illustrations are of recent
highway improvements in Iowa, and
are published through the courtesy of
the Iowa Highway Commission which
has done excellent work in securing
better roads for the Hawkeye state.

by preventing the finished crop from
being hauled to the markets and sad
instances can be cited where hundreds
of bushels of potatoes or other prod­
uct could not be sold on account of
remaining for too long a period in
storage.
O ther benefits made possible to
farm ers by good roads are the two
classes of invisible revenue that re­
tu rn directly to the people. T h e first
is the reduction of traveling costs and
the other the reduction of hauling
costs. On improved highways a farm er
can make the same number of horses
carry double the loads on much greater
distances than he could on unimproved
ones. This is a great time sav e r; and
as a reduction of time on a good road
is equivalent to a decrease of distance,

the farm ers recognize that fact and are
royally grateful for it. There are
records that show that on unimproved
roads the average cost for hauling was
22 cents per mile. A fter improve­
ment the cost was found to be only
11 cents per mile. N or is this a
unique case. H undreds similar to it
can be easily brought to light by a
little observation.
It is the same with traveling. Good
roads permit this to be more quickly,
easily, and comfortably accomplished
than unimproved ones d o ; and it is
safe to say that where bad roads exist,
traveling is practically discontinued.
A comparison of the effect of road
improvement upon the country schools
affords probably a more complete vin­
dication of the outlay than others
which have been presented. A con­
sideration of the results obtained
from several schools shows that good
roads have been materially responsible
for the education of at least ten chil­
dren out of a hundred. As the strug­
gle for existence becomes keener in
the years to come, the training that
the children receive in the country
schools will be greatly appreciated.
It will make itself felt in the success
of the men and women who will be
fighting for their places in life.
N ot only have good roads been the
contribution of a larger school attend-

C arlisle R oad, P o lk C ounty, Iow a.
A ccording to figures re p o rte d by the C ongressional
A g ric u ltu ra l Commission, w h e at h a u lin g over th is type of road, concrete, cost the fa rm e rs of the
U n ited States, a n av erag e of 15 cents p e r to n w hile the sam e h a u lin g over a n e a rth ro a d
su rfa c e costs 30 cents p e r ton. T ests a t Io w a S tate College show th a t on this type of ro a d
a gallon of gas w ill give a to n m ileage of 31 as com pared w ith 21 to n miles on g ravel a n d 14
to n m iles on e a rth su rfa c e. F u rth e r, a to n mile on this type of ro a d costs 0.77 cents com pared
w ith 1.15 cents on g ravel an d 1.71 cents on e arth , w ith gasoline costing 24 cents p e r gallon.

20

TH E

ance, but they have also lifted the
standard of instruction by making pos­
sible the consolidation of the one room
building into larger and more scien­
tifically taught graded schools.
A particularly striking feature of
the beneficial results to be obtained
from improved road conditions is the
transportation of children to and from
school. Pupils living as far as six
or eight miles from town find it easy
to attend their place of instruction
when the transfers pass right at their
doors for them regardless of weather
conditions.
T he condition of the highways do
much toward assisting or impeding
the rural delivery service. Bad, im­
passable roads mean longer periods
between the deliveries, a greater cost
per mile, and often a group of isolated
people ignorant of the great interests
and incidents of the outside world.
M any times has the post office depart­
ment found it necessary to discon­
tinue the rural service while the per­
haps urgent mail of the waiting, news
hungry people remains uncalled for.
Im proved highways perm it the
population of the country districts to
have easy access to the churches, so­
cial functions, clubs and other gather­
ings. It creates an interest and en­
thusiasm in the monotonous lives of
rural people th at is gratefully felt and
appreciated.
Switzerland, that beautiful land of
ice and snow, takes advantage of the
fact that so many beauty-seekers w an­
der there. In truth, she depends upon
them for the larger part of her revenue
and they find it profitable to expend
large sums of money annually for the
upkeep of her roads. Some of the
world’s most beautiful roadways can
be found there and they are always
in perfect condition.
A fter the improvement of some of
the principal roads of Alabama was
completed, a local paper conceived the
idea of determining the effect good
roads had on citizens by addressing
those living on improved roads.
The results were most flattering to
road development. One resident stated
that he had thought he would never
realize any direct benefit from taxa­
tion ; his mind has changed now, how­
ever, and paying taxes for road im­
provement will forever be a pleasure.
Another stated that he was going to
be paid over and over again for his
taxes by merely watching the school
children pass the door perfectly com­
fortable regardless of weather con­
ditions. There were many others, but
they were all on the same theme, that
of praising road development.
How it can be possible for any per­
son to be aware of all the economic

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N O R T H W E S T E R N

BANKER

Jan u ary , 1923

Soldier R oad, M onona C ounty, Iow a. The a d v an tag es of hill c u ttin g a re pla in ly evident in this
p ic tu re . Since pioneer days, all traffic has climbed the one hill, coasted dow n the o th er side,
th en climbed th e second hill, only to a g ain coast dow n the side of the other. The m odern ro a d
b u ild e r cam e along, c u t his w ay th ro u g h , took th e d irt he c u t aw ay an d piled it m the low
flat beyond ra is in g th e g ra d e th e re to an easy g ra d e w ith th a t he m ade th ro u g h the hill.
N ow fo r all tim e to come, traffic w ill h a u l its load of fre ig h t o r p assen g ers on a n easy g ra d e
w ith ’ no hill climbs. T he h e ight of the hill is in d ic a ted by th e c a r a n d m en m the cut. I t
looks lik e it m i^ h t h av e p a id to c u t a tu n n e l th ro u g h the hill, if necessary, to get aw ay from
th e tw o heavv climbs to the top of the crests of these rid g es w hich have b a rre d th e w ay.

benefits of improved highways and
still not encourage them for fear of the
cost is a question that many men high
in the country’s esteem are asking
each other. Can they not see in its
enhancement of land values, in its
added attractiveness to the country
side or in its heartening effect on
citizenry an appeal that speaks loudly
and clearly for itself? Even as a
helpful tran sp o rta tio n agent, or in
any of its m aterial benefits, som e­
th in g should m ake them declare
they are on the side of road im prove­
m ent and m ean to help tow ards this
object w ith all th eir pow er.
The benefits which good roads give
that lead up to the abolition of specu­
lation assist in the general welfare of
the nation to a degree unthinkable to
the average citizen. They do not take
into consideration the fact that^ these
roads are an im portant factor in the
education of the children or the con­
necting link between nations by means
of the rural service. O r if they do
it is only a momentary thought, one
that vanishes quickly and leaves no
impression in the mind of the indi­
vidual.
They know not how much their
community could be developed by the
allowance of tourist’s travel or the
markets that could be so easily main­
tained by their aid.
N or will they ever have the pleasure
of seeing their social conditions im­
prove, their families have some in­
terest in life or their entire mode of
living change so that they will really
get something enjoyable out of it, un­
til every one awakens and takes an
unextinguishable in tere st in the
often proved tru th th a t Good R oads
are w o rth the cost.

For Better Roads
A m ovem ent likely to re su lt in
the enactm ent of uniform highw ay
traffic reg u latio n s th ro u g h o u t the
country is expected to develop at
the T h irte e n th A m erican Good
R oads C ongress and F o u rteen th
Good R oads E xposition to be held
Jan u a ry 15 to 19 in Chicago under
the auspices of the A m erican Road
B uilders’ A ssociation. T h is subject
is ag itatin g th e entire field of h ig h ­
w ay tra n sp o rta tio n and develop­
m ent at p resen t and the indications
are th a t it will be b ro u g h t to a head
th ro u g h a proposal by P resid en t
T. J. W a sser of th e ro ad b u ild ers’
organization in his annual address.
M r. W asser will propose jo in t ac­
tion by the A m erican R oad B uild­
ers’ A ssociation, the A m erican So­
ciety of A utom otive E ngineers, the
A m erican A utom obile A ssociation,
the N ational A utom obile C ham ber
of Com m erce, the A m erican A sso­
ciation of S tate H ighw ay Officials
and the U nited S tates B ureau of
P ublic R oads and possibly oth er
agencies, w ith a view to w o rking
out a solution of the question along
national lines.
T h e subject of M r. W a sse r’s ad ­
dress will be “ H ig h w ay s—T h eir
U se and A buse.” T h e road b u ild ­
ers’ p resident will discuss such q u es­
tions as a m ore adequate w id th for
roadw ays, m ark in g roads w ith di­
rection signs and num bers, gasoline
filling stations, the bill-board n u i­
sance and uniform traffic rules and
restrictions. A t present, according
to Mr. W asser, each of th e fortyeight states is op eratin g its h ig h ­
w ays independently of th e o thers
and th ere is m uch conflict and con­
fusion.

Ja n u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

Why the Detroit National Banks
Want to Establish Branches
B y Richard P. Joy
President National Bank of Commerce, Detroit

E S H O U L D not approach the
problem of branch banking
from the standpoint of preju­
dice. The policy and laws of the
various states differ widely relative to
branch banking. There can surely be
no objection in all fairness to perm it­
ting national banks to establish
branches in states which perm it state
banks or trust companies to establish
and maintain branch banks.
The following statistics indicate that
state banks with branches in the city
of Detroit are gradually supplanting
national banks, which are denied the
privilege of maintaining branches. In
the year 1891 D etroit had a popula­
tion of 206,000 with 15 state and 8
national banks, while today there are
14 state banks m aintaining 179
branches and but three national banks
within the limits of a city containing
more than one million people, exclud­
ing banks in Highland P ark and H am tramck, which are seperate m unici­
palities.

W

D e tr o it B a n k s
1891
C a p ita l and Surplus o f S ta te
B a n k s --------------------------------- $ 4,026,990
C a p ita l an d Surplu s o f N a ­
t io n a l B a n k s _____________ 5,017,000
D ep o sits o f S ta te B a n k s
28,139,616
D ep o sits o f N a tio n a l B a n k s 17,499,194

1922
$ 45,326,322
13,500,000
378,734,817
158,925,825

Section 5155 of the National Bank
Act states “it shall be lawful for any
bank organized under state laws hav­
ing branches to become a national
banking association in conform ity with
existing laws and to retain and keep
in operation its branches or such one
or more of them as it may elect.”
National banks can therefore acquire
state banks by purchase and retain
their branches and state banks can
convert into national banks and retain
their branches.
Roundabout and expensive methods
are therefore provided for national
banks to acquire branches. W hy not
be open and above board and give the
national banks a square deal, at least
in states that perm it state banks to
maintain branches, by vesting the
Comptroller of the Currency with
authority to perm it national banks to
maintain branches in stich states.

We refuse to believe that congress
will permit our friends the state banks
in Michigan to enjoy a monopoly of
branch banking and also all of the
privileges of the Federal Reserve Sys­
tem and continue to deny these same
privileges to national banks.
It probably is safer as well as more

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21

tate to give up their charters in order
to convert into state banks. If, how­
ever, the national government pro­
poses to prohibit national banks from
establishing branches in states where
state banks are perm itted to operate
branches, it would seem that the only
alternative is for the national banks
to convert into state banks in order
to be able to compete on an equal
basis.
The fear of the country banker
that the city banker will invade his
territory with a bank should be
allayed. Congress can restrict branch
banks to cities having a population in
excess of say 50,000 and limit the ex­
tension of branches to w ith in th e
borders of such cities. T h e co u n try
banker perhaps deals m ore largely
in personality th an does th e city
banker w ho dem ands eith er ad e­
quate collateral or a satisfacto ry
balance sheet as the basis of ex ten d ­
ing credit. L arge and g ro w in g in­
d u stries in cities require large and
progressive banks. If th e in d u strial
tree is to bear good fru it and grow
to the lim its set by n atu re the b an k ­
ing and financial ro o ts m u st also
develop. T o re stric t b an k in g de­
velopm ent in large cities because
the country banker fears the exten­
sion of branch banking to his territory
is perhaps a narrow view. These
fears can be allayed by proper legis­
lation.

convenient for an individual to do his
banking with one strong bank having
a capital and surplus of say $8,000,000.00 which maintains 25 branches
or agencies for the convenience of its
patrons than it would be for an indi­
vidual to bank w ith any one of 25
separate individual banks each sm all
bank having a capital and surplus of
$320,000. I t w ould indeed be d istra c t­
ing for a m erchant or m anufacturer
to endeavor to split his bank account
betw een 25 individual banks in order
to obtain adequate lines of credit,
w hereas at the p resen t tim e the large
state banks in D e tro it are well able
to care for th e requirem ents of the
city's larg er industries and the b o r­
row er is obliged to negotiate w ith
b u t one bank w hen in need of tem ­
p orary loans. Limbs of credit in ex­
cess of $1,000,000 can now be
g ra n te d by som e of D e tro it’s banks.
Unquestionably sentiment alone and
the hope that there will be relief in
the near future is the inducement to
many national banks to hold their
charters. Certainly there is no real
value in a national bank charter in
the state of Michigan when compared
with the liberal charter offered under
H um an judgm ent is finite, and it
state laws. A t the same time, old and ought always to be charitable.—W in­
well established national banks hesi­ ter.

TH E N O R T H W E S T E R N

22

BANKER

Jan u ary , 1923

Nature Furnishes Almost Inexhaustible
Supply of Building Material
Indiana limestone fields after seventy years of working present an
abundance of material for all types of structures
By M . F . Holahan
Indiana Limestone Quarrymen’s Association
T T lH E R E can be no b etter exam ple
of N ature’s continuity and her
**■ self-evolving pow er th an in the
lim estone d istrict in and around B ed­
ford and B loom ington, Indiana.
F o r m ore th an half a cen tu ry In d i­
ana L im estone has been quarried and
shipped from the v ast deposits u n ­
derlying tw o entire counties and in­
stead of deterioration of this wonder­
ful, n atu ral stone, the quality is con­
stan tly im proving w ith qu arry de­
velopm ent.
T h e deposit as originally laid
down by Nature, constituted a solid
sheet sixty miles long, five miles
wide and seventy feet thick, equiva­
lent to som ething like eighteen bil­
lion tons. In some years 30,000 car
loads have been shipped, m aking in
the ag g reg ate a train 250 miles long,
carry in g a load of tw o billion and
forty m illion pounds, approxim ating
12,000,000 cubic feet in bulk.
A lthough quarries have b e e n
opened and w orked for alm ost sev­
enty years, p resen t openings show

Federal R eserve Bank Bldg., Chicago.

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Art Institute, Chicago.

an astoundinglv ab u n d an t supply in
sight, not to m ention adjacent p ro p ­
erties not y et opened.
Since the inception of the Indiana
L im estone industry, the pro d u ct has
been d istributed by individual com ­
panies. H ow ever, after its tru e com ­
m ercial value had been dem onstrated
to the arch itectu ral and buildingw orld and a trem endous dem and cre­
ated for it, the producers of Indiana
L im estone saw the necessity for
com bined effort to best serve the
rapidly gro w in g needs of their p a­
trons.
R ealizing th a t th ere is
“stre n g th in u n ity ” they organized
an association w hich is com prised of
all producers of In d ian a Lim estone.
T his close affiliation enables every
architect and ow ner to obtain the co­
operation and united know ledge and
service of eighteen individually o p er­
ated com panies.
T h ro u g h o u t the country wre see
Indiana L im estone used for every
type of c o n stru c tio n : for public and
com m ercial buildings, hom es, stately
religious edifices, piers, bridges,
b reak w aters— in fact for every stru c ­
tural purpose the superiority of this
m aterial is universally recognized.

M ississippi State Capitol Jackson, Miss.

Some of the In d ian a L im estone
stru ctu re s of w hich our N ation may
justly be proud are: in New York
City, notably the G rand C entral
T erm inal, the M etropolitan M useum
of A rt, the new C unard B uilding,
and the T rin ity B uilding, know n as
“ N ew Y o rk ’s G reat F ire W a ll” ; in
W ash in g to n , D. C., the S cottish R ite
C athedral, acknow ledged to be an
arch itectu ral gem , the U. S. T re a s­
ury A nnex, C ham ber of Com m erce
building and Bureau of P rinting and
E n g ra v in g b u ild in g ; in B oston, the
M assachusetts In stitu te of T ec h ­
nology ; in D allas, the A m erican E x ­
change N ational B ank and the new
M agnolia P etroleum C om pany build­
ing, the larg est in th e S outh, and in
N ew O rleans, the new H ibernia
B ank building. A num ber of state
capitols have been b u ilt of In d ian a
L im estone: a t Indianapolis, In d ian a
F ran k fo rt, K e n tu c k y ; O klahom a
City, O klahom a; Jackson, M ichigan

F irst and Old N ational Bank, Detroit,
W hich Has Replaced the H otel
Pontchartrain.

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

U. S. Treasury Annex, W ashington, D. C.

Indiana L im estone Clock Group. Grand
Central Terminal, N ew York City.

and In d ian a L im estone recently was
selected for th e co nstruction of the
new N eb rask a S tate Capitol at L in ­
coln, N ebraska. T h is la tte r is to be
a m ost w onderful s tr u c tu r e ; a low
building- of broad expanse, typical
of the W e ste rn plains. F rom the
center a to w er eighty feet square
will rise to the height of four h u n ­
dred feet, surm ounted by a dom e on
w hich will be placed a colossal fig­
ure “T h e S ow er”, which, it is esti­
m ated will be seen for a distance of
over th irty m iles in all directions.
Seven of the new group of build­
ings co n stitu tin g the m ain banking
h ead q u arters of the F ederal R eserve
System have been b uilt of the In d i­
ana product,—at New York City,
B oston, R ichm ond, D allas, K ansas
City, Chicago and M inneapolis.
In the city of Chicago, M ichigan
B oulevard is som etim es designated
“ In d ian a L im estone H ig h w a y ” due
to the fact th a t this stone is used
for the co n struction of the m ajority
of the buildings on this g re at th o r­
o u g h fare; im pressive exam ples are
the In s titu te of A rts, the P ublic and
C rerar L ibraries, the new London
G uarantee & A ccident Insurance
C om pany building, the F o u rth P re s­
b y terian church and the D rake
H otel.
A n o th er In d ian a L im estone bu ild ­
ing th a t is a ttra c tin g considerable

Stacking Indiana L im estone B locks For
Shipm ent.

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Federal Reserve Bank of St. Louis

23

M agnolia Petroleum Building, Dallas,
Texas.

atten tio n in this m etropolis is the
m agnificent M ethodist Tem ple, now
under construction.
W hen com ­
pleted it will be the tallest church in
the world.
B ecause of its extrem ely durable
beauty and stru ctu ra l m erit, Indiana
L im estone has received the endorse­
ment of leading architects as the
highest quality of building stone.
D ue to its wide distribution, it is
know n as “T he N a tio n ’s B uilding
Stone.”
In exceptional capacity and m ag­
nitude of o u tp u t the lim estone p ro p ­
erties are unexcelled and the facili-

View of One of the Indiana Lim estone
Quarries.

ties of the producer enable them to
ship stone of any dim ension capable
of rail or w ater tran sp o rta tio n w ith
exceeding prom ptness. Space for­
bids a description of th eir q u arry in g
m ethods, b u t suffice it to say th a t by
engaging the b est engineering skill
and providing every m odern device
p erm ittin g th eir em ployes to w ork
w ith g re ater ease and safety, they
have become leaders in the building
industry.
Irrespective of the enorm ous de­
m and for -Indiana L im estone, the
supply is practically inexhaustible,
and N a tu re will continue to serve
our N ation w ith this w o rth y m ate­
rial for generations to come.
Savings Sayings
E very m an, w om an and child
ought to save. T h a t is the earn est
and repeated exho rtatio n of all the
good and w ise m en who have lived.
T o learn to save is really the first
im p o rtan t lesson in life.—T hom as
B urton.
Save your m oney and th rive or
pay the price in p overty and dis­
grace.—A ndrew Jackson.
M en of the South, save.
You
m ust learn this lesson or th a t econ­
om y w hich so stiffens the N o rth and
inspires and stim ulates its in d u stry
will overw helm you.-—H e n ry Clay.

V iew of Indiana L im estone’s Quarry

24

THE NORTHW ESTERN

BANKER

January, 1923

Service Idea Is Sure to Grow Rapidly
In the Business of Insurance
The idea of free medical examinations and free nursing service now given by some
life insurance companies will be extended to cover other lines
B y William S. Crawford
Insurance Editor New York Journal of Commerce
N S U R A N C E , m u st respond to
hum an needs. T h ere can be
no insurance w here th ere are
no values ag ain st th e loss of w hich
indem nity is needed. As values are
co n stantly changing and the need of
indem nity ag ain st their loss varies,
insurance m u st be a flexible, grow ing
thing, m eeting the v arying req u ire­
m ents of m ankind as they arise.
T h e insurance business has dis­
covered new w ays to m eet the pub­
lic’s needs, and those needs have
changed, for exam ple, the trem e n ­
dous increase in actual insurance
values of tangible p ro p e rty ; a fuller
appreciation of the need to protect
intangible values such as steady op­
eration, prospective profits and busi­
ness g o o d w ill; largely increased per­
sonal incom es, resu ltin g in heavier
losses w hen they cease; m ore severe
economic pressure, forcing people to
reduce to a m inim um the chance of
loss w hich m ay pauperize th e m ; the
g ro w th of co rporate enterprises
w here the officers and directors are
tru stees for the real owners' and
m ust give them an accounting of
th eir stew ardship, and a very m ark­
ed increase in the practice of holding
each person responsible in dam ages
for his acts w hich resu lt in injury to
others.
W e have seen an increase in legis­
lation and official supervision in the
in terests of the public. T h e follow ­
ing o u tstan d in g tendencies a re : the
expansion of insurance in g e n e ra l;
changes in the in stitu tio n s w hich do
an insurance b u s in e ss; g ro w th of
th e m ultiple line s y s te m ; concen­
tratio n of co n tro l; co-operation; a t­
titu d e of the state tow ards in su r­
ance ; g ro w th of th e service id e a ; the
changed g ro w th of su p e rv isio n ;
stan d ard izatio n w ith state control.
T he com pany th a t w rote fire and
tonado insurance in 1902 now w rites
scores of form s of coverage. T he
com pany w hich w rote life or endow nm ent insurance on single lives
in m oderate am ounts for fam ily p ro ­
tection now w rites large am ounts
also for business protection, for p ay ­
m ent of inheritance taxes and as a
basis of cred it; it insures against

I


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Federal Reserve Bank of St. Louis

loss by disability as w ell as by death,
and it covers thousands of men and
w om en in groups.
T h e accident
insurance com panies have devised
contracts to m eet various invividual
needs and extended th eir coverage
in various form s to groups.
T he
general casualty and su re ty com ­
panies now have as principal classes
of th eir business lines unheard of
tw en ty years ago.
W e have seen only the start.
A ny class of risks to w hich the law
of average can be applied, w here
there is a real insurance in tere st and
flVIltlMtllltllllMIIIIIIMIIItlMIIHitt llttlllltllllllMIlIVtllllllltlltlltllllltllllltlllllllllllllllllllllllltllltlltlllllllllt llllllll

I do not look with dread upon the
future of insurance. I believe the busi­
ness will grow greater and better and
that it will continue to offer opportuni­
ties to men of ability either as execu­
tives, underwriters or agents and a re­
turn on capital sufficient to attract more
of it as the needs of the business re­
quire it. In order to make such re­
turns, however, it will be necessary to
eliminate from the business those who
get something out of the business with­
out contributing much of value to it.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim itim iiiiiiiiiiiu tiiiiiiiiiiiiiiiiiiiiiiiiijiiiiiiiiiiiiiiiiiiim tiiiiiiiiiiiiii

w here it is not ag ain st public policy
to g ra n t indem nity, is a legitim ate
subject of insurance. T h e possible
causes of financial loss w hich are in­
surable are alm ost w ith o u t num ber.
W ith the concentration of values
in g re at cities, w ith the em ploy­
m ent of thousands of people in
single plants or m ines, w ith the
m assing of m illions of hum an beings
in crow ded city d istricts, w ith the
increase in the m agnitude of business
transactions, the possibility of g re at
loss has increased and insurance
com panies have had to stren g th en
th eir resources accordingly.
T he
little fellows could not com pete in
lines w here the hazard is g re at and
w ere reinsured or sold out and the
ill m anaged ones, as com petition be­
cam e fiercer, succum bed.
W ith the increase in the num ber
of classes of indem nity w ritten has
come the dep artm en t store idea.
U nder our an tiq u ated sta te laws,
this is p erm itted only to a lim ited
extent, b u t in practice fire com panies

ow n and operate casualty and su rety
com panies, casualty com panies con­
trol life com panies and so on and
th ro u g h ow nership, jo in t official
m anagem ent or otherw ise, com ­
panies of the sam e class operate as
groups. T his system resu lts in re ­
duction of m anagem ent expense, in ­
creases the facilities of each com pany
th ro u g h reinsurance w ithin th e
group and enables the sm all com ­
pany to have the sam e chief execu­
tives as the g re a te st have.
T h is
tendency is grow ing every year.
T he reasons for it are the sam e as
those behind the organizatio n of the
U nited S tates Steel C orporation or
the g re at railroad system s.
In the earlier days of insurance in
this country m ost com panies sold
indem nity only. T h e idea of giving
service in addition cam e m ore re­
cently in m any lines. In steam boil­
er insurance, inspection to prev en t
explosions w as the m ost im p o rtan t
factor from the b eg in n in g ; in fact,
inspection com panies operated b e­
fore the indem nity feature w as in­
troduced. In recent years has devel­
oped the idea of service in other
lines. In stead of m erely tak in g a
prem ium for indem nity, com panies
have seen th a t they b e tte r serve
their assured by using p a rt of the
prem ium to prev en t the occurrence
of the contingency insured against.
T his is being done by individual
com panies and by g re at o rg an iza­
tions m aintained by the com panies.
T he n u rsin g service of the M etro ­
politan Life and the free m edical ex­
am ination of policyholders given by
som e o th er life com panies are a p art
of this developm ent.
T he service idea is bound to grow
for it is sound. Som e of us m ay
live to see the day w hen h ealth in ­
surance com panies give medical,
hospital and nursin g service and pay
out in cash indem nities only a small
p a rt of their incom es. I t m ay be
th a t this branch of insurance m u st
continue chiefly an indem nity p ro ­
position, b u t in those branches
w here loss can be reduced by in(C ontinued on page 63)

Ja n u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

square feet
of
floor space
at a
saving o f
50 per cent

service furnished by Hoggson Brothers
T
i e new building o f the Oak Park
for every building project. T his building
Trust and Savings Bank, Oak Park,
was proposed not only because o f its archi­
Illinois, provides a banking room 64 feet
tectural beauty, nor solely because o f the
wide and 1 1 5 feet lo n g ; a large sale de­
convenient arrangement o f banking quar­
posit department in the basement, a mez­
ters, but fundamentally because these two
zanine floor o f rentable offices; and a
features had been combined in a design
third floor especially arranged for doctors
which would be a sound business propo­
and dentists. O wing to the revenue re­
sition for the bank.
ceived from the offices, the investment
A booklet which contains two com ­
and maintenance cost of the 1 2,000 square
plete examples o f our
feet of floor space oc­
T H E HOGGSON O R G A N IZ A T IO N
standard preliminary ser­
cupied by the bank will
vice w ill be mailed up­
total per year 5 0 oj0 less
II
III
I
on request to those who
than the rental rate for
B u ild in g
B u ild in g
A rc h i tec tu r a l
are
interested in the de­
equal facilities in the
in v e stm e n t
construction ,
d esig n s ,
b a n kin g
su r v e y s
hank p la n s
sign and construction o f
vicinity.
eq u ip m en t ,
and
decorations
bank buildings, office
w o r k in g
These facts were de­
& fu r n is h in g s
d ra-ivings
buildings, or alterations
veloped by the invest­
4 8 5 F I F T H A V E N UE , N EW Y O R K
to either type o f struc­
ment study which is a
FIRST NATIONAL BANK BUILDING, CHICAGO
ture.
part o f the preliminary

HOGGSON BROTHERS
Bank Design and Construction
N E W Y O R K • C H IC A G O


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Federal Reserve Bank of St. Louis

25

26

THE N O R T H W E S T E R N

BANKER

Jan u ary , 1923

Equitable Service for banks
1.C ommercial

paper

of its exceptional credit gathering facilities, The
Equitable is able to offer special service to correspondent banks
in the market for commercial paper.
B

eca u se

The work of our Credit Department covers the entire
world, and the latest available information concerning the
standing of corporations and firms, both domestic and for­
eign, may be secured promptly through us. Write for further
particulars.

THh E q u i t a b l e
Tru st C o m p a n y
OF N E W

YORK

C h i c a g o OFFICE: N ational Bank Building, 29 South La Salle Street
D O N A L D L. D e GOLYER, Manager
FO REIG N O FFICE S
L o n d o n : 3 King William St., E.C.4
PARIS: 23 Rue de la Paix
MEXICO C i t y : 48 Calle de Capuchinas


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Federal Reserve Bank of St. Louis

DISTR IC T REPR ESENTA TIV ES

NEW YORK:

37

Wall Street

P H I L A D E L P H I A : Land Title Building
B a l t im o r e : Calvert and Redwood Sts.
CLEVELAND: 629 Euclid Avenue
C h ic a g o : 29 South La Salle Street
S a n F r a n c is c o : 485 California Street

Jan u a ry , 1923

THE NORTHW ESTERN

BANKER

27

The Hog Is the Farmers and Bankers
Mainstay Through Thick and Thin
With more encouragement the hog industry will continue to be of greatest
benefit to the community and state
By J . L. Knoernschild
Dubuque Branch, International Harvester Company
H E farm ers here who heeded
the call of the cow are again
carrying bank books with credit­
able balances. Don’t you think a
similar campaign conducted with the
view to encouraging the raising of
more and better hogs would have much
the sam e re su lt? T h e hogs are m o rt­
gage lifters. All of our w ell-to-do
farm ers say they were their mainstays
th ro u g h thick and th in ,”
T h ese w ords are p a rt of th e con­
ten ts of a letter w hich I have ju st
received from the presid en t of the
W ith good care these hogs will m ake th e ir
R yan S tate B ank of R yan, Iow a.
owner- a b e tte r fa rm e r, w ith a bigger b a n k
balance.
Before strik in g into th e m ain
th o u g h t of th is article, it m ight be
well to digress and explain th e full
burdened with mortgages who experi­
m eaning of this b a n k e r’s w ords.
ence a crying need for some permanent
L ate in the year 1921 the R yan
income to g u aran tee the eventual
S ta te B ank u ndertook to p u t on an paym ent of their obligations.
ed u catio n al cam paign Which w as
This condition is not a local one,
to show the farm ers of the com ­
munity the way to more and better and hundreds of communities are
farm profits. The keynote of the feeling the effects of the farm er’s
campaign was “milk more cows.” A t diminished buying power. Finally,
that time there was, as we all know, you and I and other members of the
a grave need of a Moses to lead the great mass of supposedly disinterested
farm er safely through the wilderness parties must feel a little pinch of the
into which he was throw n by the un­ burden which the farm er so valiantly
balanced condition of prices he was strives to bear. I t is tru e th a t no in­
obliged to pay for commodities com­ dividual class of people can long suffer
pared with returns received for prod­ the burden of an economic action
without a consequent effect upon so­
ucts. The deliverer came in the form
of the cow. The educational work ciety as a whole.
Thus, the words, “Don’t you think
carried on by the Ryan State Bank
as well as by many other bankers a similar campaign conducted with a
throughout the country resulted in view to encouraging the raising of
more and better hogs would have much
hu n d red s of cows being b ro u g h t
from the big dairy centers into com ­ the same result?” voice the bank presi­
dent’s belief that there is yet much
m unities w here cows w ere form erly
constructive work to be done and that
co m paratively few in num ber. Cow
the hog which has been the mainstay
te stin g associations w ere form ed to
g u aran tee the m axim um of m ilk of many thousands of successful
production. C ream eries w ere o r­ farm ers, will prove the source of
ganized for b e tte r and m ore profit­ profit w herein m any m ore thousands
able m ark etin g of dairy products. will find the solution of their finan­
A nd to day anyone m ay find ab u n d ­ cial problem s.
ance of evidence to prove th a t farm ­
Others will no doubt agree with
ers have been show n th e w ay to a
this bank president, and especially
m ore p erm an en t p ro sp erity through
those who formerly took such active
the g re at h um an benefactor—the
interest in the dairy campaign. There
cow.
is no m ore forceful illustration to
W hen the president of the Ryan
point out the need of more and bet­
State Bank refers to another and
ter hogs, than the recent report of
similar campaign for more and bet­ the United States Departm ent of A gri­
ter hog production, he must have in culture which makes public the fact
mind the thousands of farm ers still that there are 9,500,000 less hogs in

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Federal Reserve Bank of St. Louis

the United States today than there
were a year ago. It is quite likely
that the new crop of hogs will lower
this figure considerably. There is,
however, no assurance of any produc­
tion force which will increase the
number of better hogs of better
breeds. N or have we any guaranty
of the lowering of production costs
in this large number of the new crop
of hogs. It is the solution of this
angle' of the farm er’s problem that
will offer the banker an opening for
the perform ance of some very worth­
while service to his community.
I believe the banker should serious­
ly concern himself with the problem
of m aking the farm er see th a t in o r­
der to g et m axim um profit he m ust
produce the m ost at the least ex­
pense. I t is this featu re of hog
raising th a t should be stressed m ore
than sim ply creatin g th e im pression
'th a t larg e r profits closely follow
increased production. G reater p ro ­
duction and g re a te r profits will
quickly follow in the w ake of w aste
elim ination, scientific breeding, and
arrival at the m axim um of cost
necessary to produce so m any hundref pounds of pork.
The hog is 'the mainstay of the
farm er today. If some farm ers have
not made him so, they are not realiz­
ing the greatest possibilities lying
within their scope of endeavors. The
fact that 52 per cent of the Iowa farm ­
er’s income is from h o g s; that Iowa
is the greatest hog raising state in the
union; and the result that Iowa farm ­
ers are the richest in point of land
and building valuations, is proof
enough th a t the hog has stayed by
those w ho have stayed by him.
It is not necessary to speak of the
advisability of feeding low priced corn
and grain to hogs and thus m arket­
ing it in the form of higher-priced
pork. This point has been often dis­
cussed. Not quite so much has been
said, however, and suggestions made
whereby a great deal is said as to man­
ners in which disease may be checked
after the disease has started and
caused untold losses. Much less is
said as to how these diseases might
be prevented. It is questions like this
which many bankers have already

28

J
TH E N O R T H W E S T E R N

Hundreds of banks throughout Iowa
are distributing copies of this valuable
book to their farm er custom ers, pub­
lished by the Agricultural E xtension
Dept, of "the International H arvester Co.
This book points the w ay to more and
better hogs.

taken hold of and worked out to the
benefit of their farm er patrons.
Does every farm er fully appreciate
that no m atter how much good feed
he gives his pigs, no m atter how well
sheltered and free from disease they
are, they won’t do the best job of
making feed into pork unless they
have the rig h t kind of breeding?
How many farm ers know what is the
best feed for the brood sow before
farrow ing? It may not seem like
much loss when he throws a little
dead pig out of the pen, but just the
same he is throwing away, perhaps,
all the profit. There is no chance

Jan u ary , 1923

BANKER

to make profitable pork when a farm er
thinks he can throw away the result
of much feeding and careful prepara­
tion, just because it looks little when
it is dead. It may not be alone the
farm er’s fault, for in spite of these
methods, his father and grandfather
before him no doubt made some
money, and with careful adherence
to these laiddown policies, he argues
himself into carrying out operations
on a similar basis.
But, it’s wrong? Bankers know it.
Unless good methods of hog raising
are employed, the community as well
as the farm er inevitably suffer a
noticeable loss and consequently lessen­
ing of community development.
W hen the work of the Ryan State
Bank in promoting more and better
hogs is well under way, it will be one
more link in the chain of institutions
headed by broad visioned generals who
desire, first, to help supply the means
to generate prosperity, and then serve
the community when prosperity makes
development and growth possible.
Their success is not necessarily meas­
ured in term s of money, but larger
incomes mean better homes, better
conditions and broader opportunities
for all.
The small expense involved in the
distribution of booklets is very insig­
nificant indeed compared with the
wonderful results to be derived. P er­
haps you, who are reading this article
have never turned a hand in actually
rearing a litter of pigs or a pen of
hogs. N or have I. But, in mediating
between those who “know how,” and
those who do not, the banker or any
other citizen inspired with the desire
to be of service, can perform a work
worthy of the highest obligations of
citizenship.

LIFT THE MORTGAGE
WITH THE HOGS’ HELP.

MEW W H O K N O W - F A R M E R S W H O A R E T O D A Y T H E B E S T
AN D M O S T I N F L U E N T I A L M E M B E R S O F T H IS C O M M U N IT Y
T E L L US T H A T T H E HOG W A S T H E IR M A IN S T A Y TH R O U G H
T H IC K AN D T H IN . IN S P I T E O F H A N D IC A P S T H E S E F A R M ­
E R S A R E T O D AY C A R R Y IN G B A N K B O O K S W IT H N IC E FA T
B A L A N C E S . A N Y O N E W H O IS H A N D IC A P P E D BY A M O R T ­
G A G E HAS AS BIG A C H A N C E TO W IP E O UT HIS I N D E B T E D ­
N E S S AN D CAR RY A B A N K B A L A N C E AS T H E S E O T H E R M E N
W H O H AV E M A D E A CO N S PICU O U S S U C C E S S. YOU W I L L NAT
U R A L L Y A S K US T H E Q U E S T IO N . “ H O W ? ”
B E S U R E T O G E T YO UR F R E E CO PY OF
'H O G S FO R PO R K AN D P R O F IT .”
T H IS BO OK H AS B E E N R IG H T F U L L Y C A L L E D . “ T H E STO R Y
OF T H E IO W A M O R T G A G E L I F T E R ” AN D IT G IV E S IN F O R M A
TIO N O N T H E HO G T H A T M A N Y O F U S H A V E N E V E R T H O U G H T
OF B E F O R E IT C O N T A IN S 228 C L E A R CUT IL L U S T R A T IO N S
E V E R Y PO IN T IS D R IV E N H O M E IN S IM P L E E V E R Y D AY
L A N G U A G E . IT IS A BO O K W H ICH W IT H C A R E F U L R E A D IN G
AND S TU D YIN G W I L L A N S W E R T H E Q U E S T IO N OF “ HOW CAN
I R A IS E T H A T M O R T G A G E AN D M A K E T H E M O N E Y T H A T I ’ M
E N T I T L E D T O .”
YO UR CO PY IS W A IT IN G FOR YOU.

C O M E IN AN D G E T IT.

RYAN S T A T E BANK.
RYAN, IOWA.

This is the first of a series of adver­
tisements used in their local paper by the
R yan State B ank to create a demand
among farmers for the book “Hogs for
Pork and Profit.”
This kind of adver­
tisin g together w ith an active campaign
to promote the raising of more and better
hogs not only creates good w ill for the
Ryan State B ank but brings a large num ­
ber of farmers to their place of business.

If the hog is the farm er’s m ain­
stay through thick and thin, it must
also be one of the most stabilizing in­
fluences in the banker’s business today.
W ith more and more encouragement
to the hog industry let it continue to
be a mainstay for the combined in­
terests of farm er and banker.
The president of the Ryan State
B ank closes his lette r to th e w riter
with a note of success foreseen when
he says, “Hoping to go over the top
in the hog campaign with your needed
assistance, I am, assuring you of our
sincere appreciation of y o u r g en­
erous cooperation,
Very truly yours.”

Save While Spending” Is Slogan of New
Automatic Savings Plan
A

M E R IC A N S have been ta u g h t
to spend. S pending has been
" m ade so easy and so a ttra c ­
tive, so m uch tale n t and energy
has been used to influence people
to spend m oney, th a t saving has
becom e m ore and m ore difficult.
T h e g re at m ajo rity of people don’t
save a t all. T h o u sands have been
attra c te d by C h ristm as savings
clubs and o th er schem es to save
to w ard som e definite objective. B ut
still th e g re a t m ass of people have
not been reached, and are today e x ­
clusively spenders ra th e r th an
savers.

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Federal Reserve Bank of St. Louis

A schem e of savings w hich will
capitalize on the desire of the A m er­
ican m an and w om an to spend,
ra th e r th an asking him to use his
will pow er to w ork up steam against
this desire, has been devised by the
H illbern T h rift
C orporation
of
Chicago, w hich is announcing a new
savings plan for banks. T h e system
is entirely new and original. I t is
based on con v ertin g retail selling
price discounts into bank deposits.
I t aim s to reconcile the conflict of
in tere st betw een the m erch an t and
the b anker—the form er u rg in g the
public to sp e n d ; the latter, to save.

I t ’s slogan is “Save w hile spend­
in g .”
“U nder the H illbern plan, a co n ­
stant, invariable discount of five
per cent, know n as th e H illb ern
D iscount, is allow ed and advertised
by authorized retailers on cash p u r­
chases m ade by H illbern depositors,”
says an officer of the H illb ern com ­
pany.
“A t the re ta ile r’s option, th e dis­
count m ay be allow ed on th e am ount
of a regular th irty -d ay charge ac­
count provided the sam e be paid
on or before the ten th of th e m onth
follow ing purchase. If only a p a rt

Ja n u a ry , 1923

TH E N O R T H W E S T E R N

p ay m en t of th e account is m ade on
or before the ten th , it is perm issible
for the dealer to allow the discount
on this p a rt paym ent, b u t no dis­
count is perm issible on any unpaid
balance carried over.
“A ll retailers derive th eir au ­
th o rity to offer and advertise H illb ern Savings u nder a co n tract th ey
are required to execute w ith the
licensed bank, under th e term s of
w h ich th e ad m in istratio n of the
system will be in the b an k ’s hands
and its o p eration will be uniform
and equitable a t all tim es and in all
places.
“T o qualify as ,a H illb ern D e­
p o sito r en titled to th e H illbern D is­
count, the individual m erely reg is­
te rs his sig n atu re and address w ith
th e bank th a t has been selected by
th e H illb ern T h rift C orporation to
ad m in ister th e system , w hereupon
an account is opened in his nam e
and he is given a R eg istratio n Card
b earin g a serial num ber co rresp o n d ­
in g w ith th e n u m ber of his account
on th e b an k ’s books.
“N o initial deposit is required, and
re g istra tio n is m ade as convenient
as possible and free from red tape.
In larg e com m unities, it is recom ­
m ended th a t the bank open te m ­
p o rary re g istra tio n points in from
ten to fifty different locations, to
w hich the public shall be invited
to com e and open accounts. All
re g istra n ts m u st be bona fide re s­
iden ts of th e com m unity.
“W h en the qualified depositor
m akes a p u rchase a t an authorized
store, he receives a m em o of the
am o u n t of th e sale. A duplicate of
this, to g e th e r w ith the correct
am o u n t of cash covering the H ill­
b ern D iscount, is forw arded by the
m erch an t to th e bank.
“T h ere are several sound reasons
for th e provision th a t the individual
shall receive no in tere st on his H ill­
b ern account. T h e account has been
opened w ith o u t the usual initial de­
posit.
The
funds
accum ulate
th ro u g h no w ork, sacrifice, selfdenial or effort on the p a rt of the
saver. A n u n usual am ount of book­
keeping is required of th e bank in
reco rd in g th e tran sactio n s on these
savings accounts.
“T h e b ank fully discharges its
obligation to the individual by in­
tro d u cin g and ad m in isterin g th e sys­
tem , m aking H illbern S avings pos­
sible, conserving these discounts for
him and safe-g uarding them until
the accum ulation is w o rth while.
“T h e individual is given th e fu ll­
est o p p o rtu n ity to tra n sfe r his H ill­
bern funds, upon th eir annual m a­
tu rity , into th e b a n k ’s reg u lar sav­
ings dep artm en t, w here th ey will
draw th e usual ra te of in tere st.”

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Federal Reserve Bank of St. Louis

BANKER

29

M A K IN G BILL OF L A D IN G BU SIN ESS MORE PROFITABLE
FOR C O R RESPO NDENT B A N K S A N D
SHIPPERS—No. 2

T he Follow-Up
While a B/L shipment is in transit, the Draft with
Bill of Lading attached, if properly forwarded by the local bank
and shipper, comes in the first mail to our B/L Department.
Here these papers are immediately opened and sorted from the
other mail for special action.

The work of this department begins before 8 o’clock
each morning. The men are experts in handling and tracing ship­
ments. By reference to our voluminous data files and telephone
contact with the proper men in the railway freight offices, they at
once fix the earliest date on which the shipment can arrive. The
papers are then set ahead for follow-up in time to assure prompt
acceptance and payment—or quick emergency action if required.
As the B/L Bank in America’s freight center, ewe have so thoroughly
developed these facilities that they are worth large sums annually
to our correspondent banks and our clients in reduced shipping
losses, quicker deliveries and more rapid turnover o f funds. IVe
invite inquiries regarding the distinctive points o f this service.

UNION TRUST
COMPANY

Offering the Seven Essentials o f a Banking Home

Safety
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Spirit

Experience

Caliber

Convenience

Completeness

Prestige

30

TH E N O R T H W E S T E R N

BANKER

Jan u ary , 1923

Tax on Stock Dividends and an Excess
Profits Tax May Be Expected Soon
By H . Archibald Harris
F T H E R E w ere som e way. of
looking rig h t dow n into the
m ind of m ost corporation of­
ficers, I th in k we w ould find the
dom inant object th ere to be a ques­
tion as to w h eth er th ere will be a
tax on stock dividends.
A nd, I believe we can safely count
on some so rt of a tax on stock divi­
dends. T h e furore raised by R epre­
sen tative F re a r over the num erous
m elon-cutting
parties,
w herein
stock dividends played the p a rt of
the m elons, will do m uch to b rin g
ab out a tax reaching these funds be­
fore th ey leave the co rporation’s
hands. In fact, I look for legisla­
tion or a t least lively discussions of
a tax on stock dividends in the early
p art of nex t year, either in the re g u ­
lar session or in the special session.
Such a tax w ould probably run
ab o u t 1 0J-2 and w ould be re tro ac­
tive no fu rth e r back th a n the first
of th e year in w hich bill w as passed.
U neasiness has been expressed by
a num ber of banks, in letters com ­
ing to me, th a t a ta x on undis­
trib u ted earnings m ay be passed.
No ta x on u n d istrib u ted earnings
will be passed. O f th a t I am firm ly
convinced. I believe this to hold
good for the p resen t session of C on­
gress, any special session w hich
m ay be called, and the next regular
session in D ecem ber of 1923.
A ta x on u n d istrib u ted earnings
w ould be unsound, u n ju st and u n ­
economic and w ould m enace the
corp o ratio n s’ existence. If, for in­
stance, a corporation w as incorpo­
rated fifty y ears ago, b u t h ad n ’t
earned an y th in g in th e last ten
y ears and has a good surplus on
hand, b u t it is all invested in build­
ings, equipm ent and m erchandise,
a ta x on previous y ea rs’ u n d istrib ­
uted earnings w ould ta x w ith o u t re­
g ard to ability to pay. I t would
jeopardize th e existence of th o u ­
sands of corporations. A nd. even
if such a tax should be passed, and
I am sure it w o n’t be, I believe it
w ould be declared unconstitutional.
A n excess profits tax, how ever, is
n earer to day th an it has been a t any
tim e since th e excess profits tax
w as repealed. Increased stren g th
am ong the p rogressives and dem o­
crats, to g eth er w ith th e republicans
w hose co n stitu en ts advocate an ex­
cess profits tax, m ake up a large
body of senators and re p resen ta­

I


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Federal Reserve Bank of St. Louis

H. Archibald Harris is retiring presi­
dent of the Indiana Association of Cer­
tified Public Accountants and head of
the firm, Archibald Harris & Company,
Certified Public Accountants, Chicago.
Mr. Harris’ concern is counsellor on
accounting and taxation for the Illinois
Bankers’ Association and is therefore
particularly familiar with bank tax
troubles.
Remember! Readers of the North­
western Banker are entitled to ask Mr.
Harris any questions about accounting
or tax matters. They will be answered
without charge.

v au lt door w hich we consider u n ­
safe w ith a m uch heavier and
stro n g er one. T h e door rem oved is
practically new b u t is considered
too lig h t to afford adequate p ro ­
tection. W h a t portion of th e cost
of the new door should be ca p ita l­
ized?
Answer: T h e entire cost of the
new door should be capitalized.
U pon rem oval of the original door
and its sale or discard, a loss m ay
be sustained. T h e entire cost of the
original door should be rem oved
from the asset account. T h e p o r­
tion chargeable to incom e as a loss
will be equal to the excess of the
original cost over depreciation su b ­
sequently sustained and the sale or
salvage value of the discarded door.
S H O U L D A B U R G L A R ALARM
SY STE M BE CH ARG ED TO
EXPENSE?
Question: Should the cost of a
b u rg lar alarm system be charged to
expense?
Answer: No. T h e cost of the
b u rg lar alarm doubtless adds to the
value of your p ro p erty and its cost
should be considered a capital ex­
penditure.

filing season, in tere st becom es no­
ticeably g re ater in in terp re tatio n s
of th e p re sen t ta x law s.
M any
questions have been asked me, for
instance, on th e stock dividend,
w h a t its effect is, etc. I am, th e re ­
fore, show ing below a question r e ­
cently asked, on th e effect of a stock
dividend un d er th e p resen t tax laws.
I have n o t tried to be over-brief in
answ ering it ; incom pleteness in
tre a tin g this subject is dangerous.
D onations, and th e old bugbear,
the capital expenditure w hich is er­
roneously expended have also been
the subject of a g re at m any recent
questions. I t should be borne in
m ind in considering these questions
th a t th e difference betw een proper
and im proper tre a tm e n t m eans
often the difference betw een one tax
assessm ent for one year, and tw o
tax assessm ents for one year, plus
possible in tere st charges and pen­
alties.
H O W TO R E PO R T T H E R E ­
P L A C E M E N T OF A V A U L T
D O O R:
Question: W e have replaced a

W H A T C O N T R IB U T IO N S ARE
D E D U C T IB L E ?
Question: Is a donation to a h o s­
pital deductable from g ross in co m e’
A donation to a college?
Answer: D onations m ade by an
individual to a hospital or college
(no p a rt of w hose incom e inures to
the private stockholders) are de­
ductible w ith sim ilar contrib u tio n s
not a g g reg atin g in am o u n t m ore
th an 15% of the individual’s ta x ­
able n et incom e before d educting
contributions.
D onations m ade by a co rporation
to sim ilar in stitu tio n s are generally
not deductible from th e co rp o ra­
tio n ’s gross income. If a co rp o ra­
tion co n trib u tes to a hospital or
college conducted for the w elfare or
education of its em ployes, th e con­
trib u tio n m ay be deducted as a b u s­
iness expense.
If con trib u tio n s are m ade by an
individual to a hospital or college
conducted for th e benefit of em ­
ployes engaged in the individual’s
business, th ey lose th eir id en tity as
contributions and becom e ded u ct­
ible expenses.

tives favoring his law. I t is pos­
sible, of course, th a t th e president
m ight veto such a tax.
O n the
other hand, the p resid en t will see
th a t sentim ent is very stro n g for it
in m any q u arters, as evidenced by
the recent elections. B ut, an excess
profits tax will retu rn . C ongress
m ay give the co untry an o th er year
before im posing it, w ith th e idea
th a t in d u stry will have th a t m uch
m ore tim e to g et back on its feet,
b u t the ta x is com ing back.
In te re st is becom ing stro n g er and
stro n g er in th e possible form w hich
fu tu re tax legislation will take.
A nd, w ith the approach of the tax

TH E N O R T H W E S T E R N

Jan u a ry , 1923

31

BANKER

Another Big Price Cut

i— wMimiMi'wmurrainrm

on Gordon-Van Tine

Homes, Barns and Lumber
D espite the fact that lum ber and building m aterial prices generally have recently taken
an upward trend, we are announcing a new scale of low ered prices on all our houses, barns,
and farm buildings for 1923.
We have been able to make this reduction through our system of qu an tity production
and selling d irect from the factory. We own our m ills in the heart of the timber sources;
purchase in vast quantities, and base our prices on production cost plus one small profit.
Gordon-Van Tine prices are always figured at wholesale margins, and these prices repre­
sent very unusual opportunities for savings to those of your clients who plan on building
the com ing year.

B uildings A lw ays E nhance Values
We need not point out to you that the farmer
who adds a new barn or a new home to his land
forthwith increases its value out of all propor­
tion to the cost of the im provem ent.
Its market value, should the property be of­
fered for sale, brings a premium greatly ex­
ceeding the intrinsic cost of the house or barns
alone.
This in itself makes building on tbe farm an
investment whose safety is beyond question.
The very marked improvement in the farm­
er’s buying power within the last few months
has turned the thoughts of thousands toward
better homes and much needed barns and out­
buildings. Our sales for the past six months
have far exceeded our expectancy, and inquiries
are coming in increasingly larger numbers.

There will be many calls on you for advice
and for building loans this spring. When your
client builds the Gordon-Van Tine way, he is
not only getting highest quality material, but he
is buying it on the most advantageous basis, and
one that assures his investment remaining at
par for many, many years.
We should appreciate sending you our new
catalogues, “Gordon-Van Tine Homes,” “Gor­
don-Van Tine Farm Buildings” and our “Build­
ing Material Catalog,” showing our latest re­
vised prices, and explaining the Gordon-Van
Tine Ready-Cut and direct-from-mill plan of
selling. These books will help you greatly in
counseling your clients. They will prevent the
prospective builder from making costly mis­
takes; they give him a sound basis on which to
figure; and they save him time and money. We
will gladly mail these books free on request.
Simply send us tbe coupon.

G o r d o n -VanTineCo.
ESTABLISHED

1865

S a tisfa c tio n G u a r a n t e e d or M on ey Back
Resources Over $1,000,000.00
REFERENCES: Any bank in Davenport; Continental anti
Commercial National Bank, Chicago, 111.; National City
Bank, New York City.

Gordon-Van T in e Co.,
222 Case St., D avenport, la.
P lease send m e you r Free B ooks on
H om es, Barns, and B u ildin g M aterial.
N am e _

222 Case Street

Davenport, Iowa
A ddress


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Federal Reserve Bank of St. Louis

32

TH E N O R T H W E S T E R N

BANKER

Jan u a ry , 1923

Bank Sending Telegram ( Tieck Is Good
Today Not Liable Later
By the Legal Department
D E P O S IT O R in a San A n ­
tonio bank drew a d ra ft for
$5,000 on th e bank and sent
it to a M r. R. C. Conn, to w hom the
depositor w as indebted. Conn de­
livered the d raft to the bank in
K irbyville, T exas, for collection.
T h e K bank sen t this telegram to
the San A ntonio b an k :
“W e have for collection on you
W a rd C attle & P a stu re Co., draft
for five th o u san d dollars in favor
of R. C. Conn.
W ill you pay
sam e ?”
In answ er to this the draw ee bank
w ire d :
“ Check of W a rd C attle &* P a s­
tu re Co. five th ousand dollars is
good to d ay .”
S h o rtly th ereafter, a receiver for
th e depositor w as appointed and
the b ank applied the deposit to the
d ep o sito r’s indebtedness before the
d ra ft w as presented, paym ent being
refused upon p resentm ent.
A n action in the C ourt of Civil
A ppeals of T ex as w as started by
Conn ag ain st the San A ntonio N a­
tional B ank to force paym ent of the
draft.
T h e first question presented to
the C ourt for decision is as to the
legal effect of the d raft draw n by
a Mr. R. E. W a rd for the cattle
com pany in favor of Conn on the
San A ntonio B ank and claim ed to
be th ereb y assigned and tran sferred
to Conn. T h e telegram sent to the
San A ntonio B ank w as notice th a t
the K irbyville B ank held the draft
sim ply for collection, and w anted
the bank to answ er if it w ould pay
'the sam e, no tim e being specified,
b u t the p resum ption is th a t it m eant
w ould it be paid upon presentation.
T h e San A ntonio B ank did not
answ er the question in the affirm a­
tive, th a t it w ould then and th e re ­
fore pay it. b u t sim ply said “check
is good to d ay ,” from w hich the
K irbyville B ank should have in­
ferred and u n d erstood th a t it m eant
it m u st be p resented “to d ay ” and
no oth er day. I t gave inform ation
upon w hich a w ise bank should have
acted. I t never cam e back w ith a
fu rth e r w ire, seeking to g et the bank
to hold th a t fund represented by a
d raft it held for collection in a re­
m ote p a rt of th e state.
E vidence given in the case was
sufficient to show th a t Conn knew

A


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

iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiuiiiiiiiiiiiiiiimimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiimiiiiiiiiiimiiiiiiiiimiiim

Questions of interest to bankers are
discussed in this department and any
subscriber has the privilege of writing
for information and advice on legal sub­
jects. He will receive a direct reply
from our attorney without fee or ex­
pense. A brief of any subject involv­
ing research in a complete Law Library,
will be furnishd for $10.00. In writing
for information, kindly enclose a 2-cent
stamp for reply and address “Legal De­
partment,” care Northwestern Banker,
Des Moines, Iowa.
tiiiiiiihiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitimiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiitMiiimiuiiiiitimiiiiuimiiiiMHiiiiiiiiMin

the cattle com pany w as financially
em barrassed, if not insolvent. T he
d raft reached San A ntonio on S un­
day and on M onday the B ank w ired
K irbyville
B ank,
“ C annot pay
d ra ft,” and retu rn ed it. Before the
p resen tatio n of the d ra ft for pay­
m ent, the San A ntonio B ank had
been advised th a t a receiver had
been appointed for the W a rd C attle
& P a stu re C om pany. T h e San A n­
tonio N ational B ank im m ediately
applied the deposit of th e W a rd C at­
tle & P a stu re C om pany to its own
debt.
Conn, him self, had no correspond­
ence w ith the San A ntonio Bank.
H e relied on no statem en t, prom ise,
or inducem ent m ade personally to
him by the bank. T h e d raft w as
received by Conn in K irbyville
th ro u g h due course of m ail, for the
purpose of extinguishing a p rio r ex­
istin g indebtedness.
T h ere is n o th in g to show by any
testim ony, oral or otherw ise, p re ­
sented in this case, th a t it w as the
intention, otherw ise th an is show n
on the face of the plain language
usual in ordinary drafts, on th e p art
of any one, th a t Conn received and
accepted the d ra ft as an assignm ent
of any fund in th e bank. T h e fund
th ere w as in no sense a special de­
posit for him to draw ag ain st to
pay any special class of claim s, b u t
was represented by deposits placed
th ere fro,ni tim e to tim e arisin g from
proceeds of cattle m ortgaged to se­
cure the bank. In 20 m inutes after
the bank w ired the m essage to the
K irbyville B ank, th ere w as nothing
to prev en t the ca ttle com pany from
checking out every cent of the de­
posit, unless it be th a t the bank
exercised its prior rig h t to apply
any p a rt of th a t general deposit
arisin g from th e sale of cattle th a t

w ere m ortgaged to its ow n in d eb t­
edness. T h ese deposits w ere p ro ­
ceeds of cattle sold w hich w ere
m ortgaged to secure this v ery debt
due the bank.
I t m ay be th a t in som e cases the
inten tio n w ith w hich a p a rty does
a p artic u la r th in g is m aterial and
should be considered, b u t the in ten ­
tion w ith w hich this fund w as
so u g h t to be draw n out w as to pay
off certain creditors to be in posi­
tion to handle larg er ones. T his
secret in ten t cannot be the. basis of
any law ful co n tract to assign the
fund in th e bank.
T h e indebtedness of th e W a rd
C attle & P a stu re C om pany to the
bank w as tran sferre d in tru s t to a
tru stee. T h e bank held a note for
$18,000, upon w hich note w as al­
lowed a credit of $8,060.07, the
am o u n t on deposit to the cred it of
W a rd C attle & P a stu re C om pany
a t the tim e of the presen tatio n of
th e draft.
T he claim th a t the fund in the
bank w as assigned is based upon
W a rd ’s testim ony, w ho s ta te d :
“T h a t a t the tim e of th e issuance
of th e d ra ft to R. C. Conn and in
forw arding it to K irbyville, it w as
his purpose and inten tio n to a p p ro ­
priate th a t fund in th e San A ntonio
N ational B ank in so far as it w ould
go to th e paym ent of the d r a f t; th a t
he w as selling the cattle a t th e tim e
and w as accum ulating funds for
certain obligations th a t he w anted
to take care of, including M r. Conn,
and w hen he th o u g h t he had m oney
enough in the bank, he sen t th e
check to Mr. Conn as he h ad p ro m ­
ised to do. T h a t his purpose and
intention in executing and sending
to R. C. Conn the d ra ft w as to ap­
propriate the funds in th e bank to
the paym ent of the Conn d e b t; th a t
he in stru cted a M r. S artw ell to as­
certain his balance in th e bank, and
they discussed betw een them selves
w heth er or not they had m oney
enough in the bank to satisfy the
Conn debt and also the obligations
to G ilbert.”
T h ere is no language contained in
the letter th a t indicates an in ten ­
tion to assign the fund. T h e oral
testim ony of W ard , th e p resid en t of
the cattle com pany, show s only his
ow n secret purpose and in ten t, and
no agreem ent m ade a t the tim e he
(C ontinued on page 44)

THE N O R T H W E S T E R N

Jan u a ry , 1923

33

BANKER

flow many accounts w ould you get b y running this A
full page ad in your home newspapers at our expense •
______

——

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d e p o s it a p e n n y

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pj u
pARD O
ofi aa ociim.
Bank A ccount that
would
ROW BY
HO T-Arr
E V E7R
rikAKU
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Y0UG to
make
■ I T S E L F —like magic-starting w i t h r^
ougrya c c o u n t « .« <

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‘» - f - r dr r har ’fromw" k,ow" k' frommo",h

t o ^ m h “ until at last you could withdraw a goodly- SUm °
Money ,h„. you Old no. put
S r —

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U

denial or sacrifice or service or inconvenience ?
brea.h'

You feel .t o . « could no. P - » « y be .me.

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It doesn't matter if you already have a savings

Y o u in c u r no o bligation of a n y so rt —
Y ou perfo rm no w o rk nor serv ice —
Y ou nev er s tin t you rself in y o u r s p e n d in g —

Yet Money Accumulates Regularly to
Your Credit,
your

andat the endof one year
youcanwithdraw balance in cash

account or a

checking account with this or any other b a n k I, doesn't matter if you owe money to this or any other b a n k 1, makes no difference if you arc rich or poor, youug or old
male or fem ale-.f you reside within the boundanes mcnt.oncd
below you arc eligible for a Hillbern Account

------------- --------------

FIRST TRUST and SAVINGS BANK

HE HILLBERN SYSTEM makes automatic savers out of two-thirds or
more of your population. Once opened, the Hillbern Account is per­
petual and self-renewing. Write, without obligation, for detailed information.
T

■ H f H a M B Ä W T ct M I F T C O R P O R A D T B O B f

Continental and C ommercial Bank B uilding
cnm eA cm

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

w

34

TH E N O R T H W E S T E R N

BANKER

Jan u ary , 1923

Personal Paragraphs

Developed through the growth
and experience of more
th an half a century

The First
National Bank
of Chicago
James B. Forgan, Chairman of the Board
Frank O. Wetmore, President

and the

First Trust and
Savings Bank
James B. Forgan, Chairman of the Board
Melvin A. Traylor, President

offer a com plete financial'
service, organized and m ain­
tained a t a m arked degree of
efficiency. Calls and corres­
pondence are invited relative
to th e application of this ser­
vice to local, national and in­
tern atio n al requirem ents.

Combined Resources
over

$300,000,000

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

Albert W . Harris, p resident of the
H a rris T ru s t & Savings B ank of
Chicago, was a D es M oines v isitor
durin g the m onth, looking over the
situ atio n of th e Des M oines stree t
car system , of w hich his com pany
is an extensive bondholder.
Ralph J. F. Frank, at one tim e
auditor of the Citizens T ru s t &
Savings B ank of D avenport, and
later connected w ith the R egister
Life In su ran ce com pany of th a t
city, died recently in California.
H e had been actively connected w ith
a Chicago w holesale firm until his
health necessitated his rem oval to
C alifornia.
—$—
L. A. Andrew, president of the
Iow a F arm C redits C orporation, w as
a speaker a t the recent convention
of the Iow a Fleece W ool G row ers
A ssociation, held in D es M oines.
M r. A ndrew em phasized the need
of the farm er for a b etter system of
credits, and pointed out phases of
ag ricu ltu ral im provem ent of the
year 1922 over 1921.
Albert W . Eiarris and M. H. MacLean of the H a rris T ru s t and Sav­
ings bank of Chicago, w ere guests of
the council of m em bers of the D es
M oines C ham ber of Com m erce at
th eir luncheon a t H otel Savery.
P ro g ress in building w hich has taken
place in Des M oines w as illu strated
by m otion pictures called
“A
C om m unity In v e n to ry ” presented
th ro u g h the courtesy of th e Des
M oines theater.
Paul Augsberger, cashier of the
F irst N ational B ank of B urlington,
Iow a, and a m em ber of the G reater
B urlington A ssociation, addressed
m em bers of th e F o rt M adison C ham ­
ber of C om m erce on th e subject of
com m ercial association w ork.
Edgar L. Mattson, vice president
and tru s t officer, M idland N ational
B ank of M inneapolis, left M inne­
apolis recently to atten d a m eeting
of the Special T ax C om m ittee of the
N ational B ank D ivision of the A m er­
ican B ankers A ssociation, w hich was
held in W ash in g to n , D. C. T here
w as cheer aplenty for the M idland
N ational B ank staff this year a t the
C hristm as p arty and dance in the
bank lobby on F riday, D ecem ber

22.
T he lobby of the M idland
N ational B ank, w ith its large floor
area and beautiful lig h tin g effects,
lends itself adm irably to occasions
of this kind. D ecorations conform ed
to the sp irit of the occasion.
—$—
L. A. Andrew, presid en t of the
Citizens Savings B ank, of O ttu m w a,
Iow a, has ju s t received w ord from
th e president of the A m erican B an k ­
ers A ssociation th a t he has been ap ­
pointed on the A g ricu ltu ral C redit
C om m ittee of the A ssociation. T his
is one of th e m ost im p o rtan t com ­
m ittees of the b an k ers’ organization
and is headed by M. A. T ra y lo i,
president of the F irst T ru s t and S av­
ings Bank, Chicago.
—$—
A. M. Henderson, of S tory City,
president of the Iow a B ankers A s­
sociation, m ade an address recently
before a w eekly luncheon of the
Boone C ham ber of C om m erce at
Boone, Iow a. P resid en t H enderson
talked on “ C om m unity P ro b lem s,”
in w hich lie presented a n um ber of
in tere stin g statistics re g ard in g the
state of Iowa.
Carl R. Gray, president of the
U nion Pacific R ailroad Com pany,
w as elected a director, at the N ov­
em ber m eeting of the board of di­
rectors, of the F irst N ational B ank
of Chicago., and also a m em ber of the
board of directors and advisory com ­
m ittee of the F irst T ru s t and Sav­
ings Bank.
H. H. Kelso has joined the staff
of the M ortgage Loan D ep artm en t
of the F irst N ational C om pany of
St. Louis. Mr. K elso has been asso­
ciated for m any years w ith leadingarchitects and contractors, both in
St.. Louis and the M iddle W est, in
the actual supervision of large
construction enterprises, and has
gained an intim ate know ledge of the
practical problem s en terin g into the
erection of new buildings. H e will
approve all plans and specifications
and supervise the constru ctio n of
all new buildings w hich they
finance, and join in th e ap p rai­
sal of old buildings, thus affording
another safeguard for th eir m ortgage
securities.
M r. K elso’s services will also be
available, in an advisory capacity,
w ith o u t charge, to all ow ners, archi-

Big Merger o f
D ubuque Banks
The D ubuque N ational Bank, the D ubuque Savings B ank and the Second Na­
tional B ank of D ubuque announce th e ir consolidation under the new title of

T h e C o n s o lid a te d N a t i o n a l B a n k o f D u h u q u e
w ith

C a p i t a l ______
S u r p lu s ______
D eposits over

.$ 500,000.00
1 0 0 ,0 0 0 .0 0

4,000,000.00

The union of the Second N ational Bank, th e D uhuque N ational B ank and the
D ubuque Savings Bank, brings together th ree of the oldest and best-known
banks in the state w ith augm ented financial and personal strength, m aking the
new institution an outstanding factor in future financial operations both in the
city and the surrounding country.
The board of directors will consist of the following well known business men,
whose integrity, ability, and sound judgm ent will hold the institution to the
highest standards of safety and prudence.
C. H. Berg, President Union Trust &
Savings Bank.
W. J. Brown, Insurance.
Jas. M. Burch, President Farley &
Loetscher Mfg. Co.
F. W. Coates, Insurance.
J. K. Deming, President.
Herrn. Eschen, Secretary.
D. J. Lenehan, Attorney.

John H. Maclay, of Bradley & Ma clay
Real Estate.
Geo. McLean, President Key City Gas Co.
Jos. W. Meyer, Cashier.
Geo. W. Myers, of Myers-Cox Co.
J. J. Roshek, of Roshek Bros. Co.
N. J. Schrup, President Pioneer Trust &
Savings Bank.
John W. Schwind, of Dubuque Realty Co.

T he Consolidated National
Bank
o f Dubuque
DUBUQUE


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Federal Reserve Bank of St. Louis

IO W A

The Combined
Efficiency
of tlie three banks will provide service of the highest quality both to de­
positors and to correspondents. The collection department, the savings
department, the investment department and all other branches of the
service will be managed by officers of experience and progressive ideas.
The official staff will consist of
P resident____________________________J. K. Deming
\ ice P residents___ Jas. M. B urch and Geo. W. Myers
S e cretary ________________________________ H erm ann Eschen
C ashier_____________________________Jos. W. Meyer
A ssistant Cashiers

John E. Wagner
J. J. Sullivan
Arthur P. Melchior
J. A. Behnke
Albert Wharton

With these well-trained men in charge of the activities of the bank,
the public is assured of prompt and careful attention to all business en­
trusted to them, while the combined assets of the bank, aggregating five
and one-half million dollars, will enable the institution to handle trans­
actions great or small, aiding and promoting the commercial, manufac­
turing and agricultural interests of the city and state.

“ T h e Consolidated N a tio n a l B a n k ”
comes before the public not as an untried, experimental organization,
but with the experience and reputation of years of acknowledged merit.
With pardonable pride in their past record, and with confidence in the
future, the management invites correspondence and offers its services in
any department of banking.

T H E C O N S O L ID A T E D N A T IO N A L
BANK of DUBUQUE

D U B U Q U E ,


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

I O W A

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

1 iS CJC, its o rg a n iz a tio n o v e r t h ir ty y ea r s ago, d u rin g w h ic h
tim e it has co n tin u ed u n d er the sam e m anagem ent,

THE

N A T IO N A L
O F

B A N K

T H E

R E P U B L I C
OF

CHICAGO

has c o n sta n tly en d ea v o re d to he o f th e rig h t so r t o f assistance
to its p atrons.

T h a t th e re la tio n sh ip b e tw e e n th e hank and

its cu stom ers has p ro v ed m u tu a lly p lea sa n t and p ro fita b le is
ev id e n c e d b y th e su b stan tial success o f both.

T o those d e­

sirin g th is e x c e p tio n a l h anking se r v ic e in C h ic a g o , th e m an­
agem ent co n tin u es to o f fe r

its f a c ilitie s in a ll D ep a rtm e n ts.

O F F I C E R S
JOHN A. L Y N C H ,
GEORGE W OODRUFF,
R o b e r t m . M cK i n n e y .
SA M U EL W W HITE,
OSCAR H. SW A N ,
WM- C. FR E E M A N . O. T. H E N R IK SE N .
C. C. HALL,
FR A N K H. GAY. -

-

President
Vice-President
Vice-President
Vice-President
Vice-President and Cashier
•
Assistant Vice-President
Manager Collection Department
Manager Transit Department
•
Trust Officer
-

•

THE

»

-

-

LOUIS J. MEAHL ,
Assistant Cashier, Manager Credit D ept,
CHAS. S. M A C F E R R A N ,
•
Assistant Cashier
ALLIN,
.
.
.
.
Assistant Cashier
WALTER L. JOHNSO N,
.
.
.
Assistant Cashier
THOS. H. O C O NNOR,
.
.
Assistant Cashier
HA R OLD M. M ICHAELSON.
.
Assistant Cashier
CHAS. W. FRITZ,
Manager Savings Department
S. ROSS,
Manager Foreign Exchange Department
JAM ES S. BALEY.
Manager Department of Statistics

1 0 0 Years of C om m ercial B anking
We specialize in the care of bank­
ing relations and requirements of
interior banks located in agricultur­
al districts. Our officers being con­
versant from experience with the
needs of banks in the live stock
and agricultural sections, enables
us to adequately and intelligently
serve such clients.

Bank

OF THE
CITY OF NEW YORK

E x c e p tio n a lly q u a lifie d to h a n d le th e a c c o u n ts o f B a n k s, T r u s t C o m p a n ie s a n d
o th e r C o rp o ra tio n s.
C o rre sp o n d e n c e in v ite d .

2 0 0 M i lli o n D o lla r s R e s o u r c e s

R e a d ers w ill co n fer a f a v o r b y m en tio n 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 o u r a d v e rtise rs.


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

35

THE N O R T H W E S T E R N

36

BANKER

T w o unforeseen em ergencies in a
single commercial transaction
T h e B /L Department now de­
tailed a representative to deal with the
situation. In one day special trucking
arrangements were made, and the
merchandise dispatched to the new
consignee. T h e day of its arrival,
the draft was presented and paid, and
the credit wired to the consignor,
3000 miles away.
T h e Irving’s special Bill-of-Lading
Department is organized to trace rail­
road shipments, to locate freight cars
on arrival at terminals, to eliminate
every sort of delay in releasing capital
invested in goods in transit.
Quick, accurate service in collec­
tions, in transfer of funds, and in
securing credit information abroad,
is assured through the Irving’s cor­
respondents or special representatives
in more than 5,000 foreign cities and
through direct cable connections with
every trade center in the world.

How a far-reaching type o f hank
service is speeding up the turnrver o f capital
O T long ago we received a draft
from a correspondent, to be
collected on arrival of merchandise.
For certain reasons payment was re­
fused. In the interests of the ship=
per, the goods had to he taken
care of.
Our Bill-of-Lading Department
was put in charge of the situation.
After getting in touch with the owner,
it first arranged for immediate storage
of the goods. T hey were thus kept
safely until sold to a large wholesaler
in a nearby town.
But here a second difficulty arose.
T h e goods were bought subject to
immediate delivery, and a strike had
practically tied up local traffic.

IRVING NATIONAL BANK
N EW

YORK

OMAHA PRINTING CO.
PRINTERS-LITHOGRAPHERS
OFFICE

SUPPLIES

He

1ÉI

r^-rnm
■ ■

O FFIC E

Fu r n i t u r e
DESKS
TABLES
CHAIRS

LOOSE

LEAF
DEVICES
FARNAM
AT 1 3 ™


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Federal Reserve Bank of St. Louis

FILIN G
D EVICES
' STEEL £ WOOD

m

PHON
O M

A H

A .

DOUGLAS 2793

Jan u ary , 1923

tects and co n tracto rs desiring assis­
tance in the p lanning and financing
of new building enterprises.
—$ —
Jay G. Sigmund, vice-president of
the Cedar Rapids Life Insurance Com­
pany, Cedar Rapids, Iowa, is the
recipient of a wealth of merited com­
mendation, since the publication of
his new book of poems, “Frescoes.”
M r. Sigmund, although prim arily an
insurance man, and ranking high in
insurance circles, possesses an adm ir­
able talent for literary expression and
has contributed a great number of
short poems and prose works for
various newspapers and magazines.
“Frescoes” is Mr. Sigm und’s first
book and it has been hailed enthusi­
astically by literary critics.— “An in­
dividual note in his poems,” says W il­
liam Stanley Braithwaite, a well
known critic. “Frescoes is a book to
arrest the attention of poetry readers
who want life and character em­
blazoned upon the singer’s dreams.”
* * * “ Some of his poems are
humorous, some are serious and in­
spirational ; all of them have nimbly
tripping feet and a delicacy which
fascinates the reader,” comments the
Cedar Rapids Republican, in its liter­
ary columns.
Mr. Sigm und’s book is being pub­
lished by the B. J. Brimmer Company,
of Boston. His friends who have
read it are awaiting the next produc­
tion of his pen.
—$—
H. M. Cormany, of W oodbine,
Iowa, for 12 years a state bank ex­
aminer and widely known in Iowa
banking circles, died at his home in
W oodbine recently. Death followed
a lingering illness of more than a year.
P rior to his illness Mr. Cormany
was assistant cashier at the Iowa Loan
and T rust Company in Des Moines.
In 1914 he organized the Citizens State
Bank at Onawa.
Mr. C orm any w as born in M arion
county, Iow a, M ay 11, 1864, and had
resided in Iowa all his life. H e wras
58 years old. Mr. Cormany was a
member of the Knights of Pythias
lodge.
The banker is survived by five
brothers, J. M. Cormany, G. H. Cor­
many and G. L. Cormany, all of Sioux
City, and H . A. Cormany and W . F.
Cormany, of Williston, N. D., and one
sister.
—$—
W ill A. Lane, cashier of the F irst
N ational B ank of W aterloo, Iowra,
w as in C hicago recently to atten d
a conference of th ree hun d red m em ­
bers of the R oger B abson financial
inform ation service. M r. B abson
gave an address on the p re sen t busi-

Ja n u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

37

ness situ atio n before a public m eet­
ing of six th o u san d people, follow ­
in g the conference.

C. R. Chaney, a ssista n t cashier of
th e N o rth w e stern N ational B ank of
M inneapolis, w as in Cleveland r e ­
cently to assist in plan n in g th e pro­
gram for the 1923 convention of the
A m erican In s titu te of B anking, to
be held n ex t y ear in th a t city. M r.
C haney is vice p resident of the n a­
tional organization.
F re d O. Roof of D enver, Colo.,
has been ap p o inted a class “ C” di­
recto r of the F ederal R eserve B ank
at Kansas City. H e succeeds Fred
W . Fleming, whose three-year term
has expired.
The appointment of George W . Mc­
Cormick, of Menominee, Mich., as
class “ C” director of the Federal Re­
serve Bank of Minneapolis, also was
announced.
M r. McCormick takes
the place vacated by C. H . Benedict.

Mrs. D. M. Inman, w idow of D.
M. Inm an, form erly president of the
F irst National Bank, Vermilion, South
Dakota, has ju st made a gift of $15,000 to build the initial block of a
stadium to be built on Dakota Field
at the University of South Dakota,
Vermilion, South Dakota. The sta­
dium will be called Inm an Stadium in
memory of Mr. Inman, formerly a
member of the board of regents of
education of South Dakota.
R eg ard in g B ank D irectors
“ B ank directors—T h eir D uties
and L iab ilities” is the title of a new
book being published by the B ank­
ers P u b lish in g C om pany of New
Y ork. T h e book is w ritte n by O.
W . B irckhead, a national bank ex­
am iner.
I t tells how to appraise the a s s e ts ;
how to verify the c a s h ; how to
verify exchanges for the cleaning
h o u se; how to check up loans and
d is c o u n ts ; how to exam ine item s
such as bonds and securities, bank
buildings, fu rn itu re and fixtures,
real estate, due from banks and
bankers, etc.
T h is book also gives ex tracts
from th e law defining the duties and
liabilities of bank directors and th e
penalties prescribed for the neglect
of such duties.
A special form is given w hich is
recom m ended for use in re p o rtin g
the resu lts of the exam ination to the
board of directors.

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

A Valuable Tradition
A private hom e was altered to
house the Chemical Bank when
it opened on Broadway in 1824.
The “h o m e-lik e” atm osphere
thus established prevails today—
one of the reasons why so many
new depositors comment on the
friendly hospitality they find upon
entering the Chemical National
Bank.
A commercial bank —perform­
ing every function of a bank.
Seeking N ew Business on Our Record

N A T I O N A L »

BANK

OF N E W Y O R K
Founded 1824

BROADWAY AND CHAMBERS, FACING CITY HALL

THE

OLD

L .IN E

General Agency Chances Open
in Four Western States
A G o o d ch a n ce for B an k ers w it h
A b ilit y o f M a n a g e m e n t
G J iH a A iin s .

H res

CJS. S u c L b o d c z .

Secy.

HOME OFFICE: CEDAR RAPIDS, IOWA

TH E N O R T H W E S T E R N

38

BANKER

A C ooperative Corporation
T H E S P IR IT O F C O O PE R A T IO N W H IC H
H AS A C C O M PL ISH E D SO M UCH IN IO W A
D U R IN G T H E P A S T Y E A R H AS B E E N
M A D E A P E R M A N E N T P A R T N E R S H IP BY
T H E IO W A B A N K E R A N D T H E IO W A
FAR M ER .
T h e Iow a F arm C redit C orporation is th e resu lt
of a year of cooperative effort betw een the farm ers
and b ankers of Iow a. Its organization has been
com pleted w ith a vision of the usefulness th a t it
hopes to be to ag ricu ltu ral Iow a.
W e w a n t th e bankers of Iow a to be thoroughly
co n v ersant w ith the class of securities w hich this
corporation issues, including Iow a F irs t M ortgage
Gold B onds and our regular F arm P ap er D ebenture
Bonds.

Iowa First Mortgage Gold Bonds
N ow issued by th e Iow a F arm C redit C orporation,
provide in convenient form th e h ig h est class of con­
servative investm ents for y o u r funds in am ounts
from $100 to $10,000 and for one y ear to ten years,
w ith in tere st at six per cent, payable sem i-annually.
T h is C orporation now offers its farm paper deben­
tu re bonds, w hich are secured by fa rm ers’ notes de­
posited w ith a tru stee. T hese bonds ru n for six
m onths and a y ear and are from $100.00 to $10,000.
No b etter sh o rt tim e security can be offered to the
investing public and banks in this stette.

I o w a F a rm C r e d it C o r p o r a tio n
Sixth Floor, Observatory B uilding
DES MOINES, IOWA

Seven C o m m u n ity Banks
i n O n e B ig S e r v i c e
Seven im p o rtan t business com m unities in G reater
New Y ork are served by this bank. I t reaches directly
the big w holesale and retail d istricts of N ew Y ork and
B rooklyn and brings to th e service of out-of-tow n
banks th a t close and co n stan t contact obtainable in no
oth er w ay.

THE BANK
OF AMERICA
ESTABLISHED 1812
M ANH ATTAN


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

and

BRO O K LYN

Jan u ary , 1923

IN THE DIRECTORS’ ROOM
P. D. Q.
“T h e average w om an has a vo­
cabulary of only eight h undred
w ords.” I t is a sm all stock, b u t
think of the turnover.— O akland
T ribune.
In siste n t
N ew sboy on railroad car, to g en­
tlem an occupant — “B uy E d g ar
G uest’s la test w ork, sir? ”
G entlem an— “ No, I am E d g ar
G uest him self.”
N ew sboy— “W ell, buy ‘M an in
L ow er T en .’ You ain ’t M ary R ob­
erts R inehart, are yo u ?”— W rite rs
M onthly.
B itter ¿\w axening
M anuel, a negro, w ith a record
h ith erto clean, was arraig n ed before
a country ju stice of the peace for
assau lt and b attery .
“W h y did you beat th is m an up,
M anuel?” questioned the squire.
“H e called me sum pin ’, jed g e.”
“W h a t did he call y o u ?”
“H e called me a rhinoceros, sah—
a rh in o c e ro s!”
“A rhinoceros ! W hen did th is oc­
cur ?”
“ ’B out th ree years ’go, jed g e.”
“T h ree years a g o ! T h en how did
it happen th a t you w aited so long
to resen t it? ”
“Jedge, I ain ’t never seen a rh i­
noceros till dis m aw nin’.”
T he U biquitous M r. W e st
G ribble & Son, w holesalers, sold a
bill of goods to J. W . W est, a m er­
chant at a little crossroads village in
M issouri, and w hen th e goods a r­
rived at the village Mr. W e st refused
them . T h e w holesale firm prep ared
to in stitu te suit for collection and
w rote to the railroad ag en t a t the
village for inform ation ab o u t the ar­
rival of the m erchandise, to the
p resident of the bank for inform a­
tion concerning the financial s ta n d ­
ing of th eir custom er, to the m ayor
of the city ask in g him to recom ­
m end a good law yer to handle th eir
case, and to M r. W est, th rea ten in g
suit if he did not m ake p ay m en t at
once. Mr. W e st answ ered :
“ I received the letter tellin g me I
had b e tte r pay up. I am the ra il­
road agent a t C rossings, and also
received the lette r you w ro te to the
agent.
I am p residen t and sole
ow er of th e local bank, and can as­
sure you as to m y financial stan d ­
ing. A s the m ayor of th e city, 1
hesitate to refer you to a law yer.

Jan u a ry , 1923

TH E N O R T H W E S T E R N

39

BANKER

since I am the only m em ber of the
b ar of th is vicinity. If I w as not
also p asto r of the M ethodist C hurch
I w ould tell you to go to hell.”—
W in d so r (M issouri) Review.
In a Quandary
‘W h a t ’s
Sandy
M acpherson
stu d y in g ab o u t?”
“H e ’s in a bad w ay. H e ’s in the
h ab it of le ttin g his pipe go out and
he can ’t m ake sure w h e th e r he saves
m ore for tobacco or w astes m ore
for m atch es.”
Food First
N o rth : “ H ave you ever tried the
D aily D o zen ?”
W e s t:
“ No, I don’t care for
o y sters.”
Survival of the Fullest
In th e early days of the tem p er­
ance cause its w orkers w ere alw ays
on th e scent of evidence as to the
physical adv antages of to tal ab sti­
nence.
H a v in g heard of an old
m an w ho had attain ed the ripe age
of n in ety-six and had never touched
a drop of liquor, a com m ittee was
rushed to his hom e to g et his sw orn
statem en t to th a t effect.
T h ey had ju st propped him up in
bed and w ere guiding the feeble,
trem b lin g old hand along the dotted
line w hen th ey w ere startled by a
violent distu rbance in the next
room — scuffling of feet, falling of
heavy fu rn itu re, and b reaking of
crockery.
“ Good heavens, w h a t’s th a t? ”
gasped a com m itteem an.
“ O h ,” w hispered th e senile saint
as he sank back exhausted from his
effort, “th a t’s paw .
H e ’s drunk
a g a in !”— S atu rd ay E v en in g P ost.
Just a Tip
S ergt. C ooper w as in a quandary
w hen he g o t out of the arm y as to
w h at to do. T h e old haberdashery
job d idn’t look so good and it
seem ed a p ropitious tim e to s ta rt in
so m ething fresh.
H e ’d alw ays
w anted to w rite, so he tu rn ed his
hand to verse.
A t first his success w as sm all, b u t
suddenly th ere sp ran g into being a
trem endous dem and for his books.
“H ow on earth do you do it? ” de­
m anded a friend.
“T h e old diplom acy, son,” replied
the ex-sarge. “ I gave a few vol­
um es to som e public libraries, took
them out again and re tu rn ed them
w ith verses blacked out here and
th ere all th ro ugh. A nd you know
th e p ublic?” — A m erican L egion
W eeklv.

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

Member
Federal Reserve
System

Organized
1889

D IRECTO RS
A. WATSON ARMOUR

Vice-President, Armour & Company

SEWELL L. AVERY
JOHN T. PIRIE

President, U. S. Gypsum Company
Carson, Pirie, Scott & Company

KERSEY COATES REED Secretary, Marshall Field & Company
EDWARD L. RYERSON, JR..
Vice-President, Joseph T. Ryerson & Son
MARTIN A. RYERSON
WALTER BYRON SMITH
JOHN STUART

President, Quaker Oats Company

EZRA J. WARNER
President, Sprague, Warner & Company
SOLOMON A. SMITH President, The Northern Trust Company

THE NORTHERN
T R U S T C O -B A N K
Capital and Surplus, $5,000,000

La Salle and Monroe Streets

Chicago

T h e Federal Land Bank
of Omaha
O m a h a , N ebraska
During the past five years over $71,000,000 in farm loans have been
m ade to more than 14,000 w ell satisfied borrowers by the Federal Land
Bank of Omaha.
This bank is the dom inant factor in reducing and stab ilizing in terest
rates on farm loans. B ankers can serve their custom ers b est and benefit
th em selves m ost by encouraging the m aking of farm loans w ith the Fed­
eral Land Bank of Omaha.
If the farm er is w ell financed for a long term of years at a low rate
of in terest on his farm loan, the hanker can w ith much greater safety
finance that farm er on his collateral security.
The Federal Land Bank of Omaha is the farm ers’ b est friend and
w hatever helps th e farm er also helps the banker.
W rite to us for the establishm ent of a connection w ith the Federal
Land Bank of Omaha.

40

TH E N O R T H W E S T E R N

B risbane R ig h t T h is T im e
A head of you is old age, w aiting.
T h ere is the old age, dignified, in ­
dependent, happy— the best tim e in
life, w hen foolish fires have died
out, reg retted follies are alm ost for­
g o tten , no m ore harm or falsehood
need be feared, and the m ind, m a­
ture, studies life and o th er w orlds
quietly and hopefully.
T h ere is th e old age tow ard which
so m any are d riftin g —the old age
of poverty, sorrow , hum iliation and
dependence.
N o th in g is m ore dreadful th an to
be old, dependent upon others, and
not w anted.—A rth u r B risbane, the
H e a rst N ew spapers.
M odern “ M agic” in B usiness
A p rosperous and efficient b u si­
ness m an of large afifairs in th e yeai*
1860, for instance, m ig h t w ell have
suspected the em ploym ent of su p er­
n atu ra l agencies if he had been sud­
denly tran sp o rte d to a w ell-equipped
business office of th e p resen t day.
T h e telephone and its incalculable
saving of steps and of lette r-w rit­
ing, w ould have excited his special
w onder. B ut it is only one of m any
m arvels w hich inventive genius has
produced in th e p ast sixty years.
A t N ew Y o rk ’s recent business
show w ere exhibited not only ty p e ­
w riters, w hich have displaced pen
and ink in correspondence, b u t
bookkeeping m achines, w hich m ake
entries, add, su b tract, keep books in
p ro p er balance w ith each tran sa c­
tion recorded, and even m ultiply
and divide w hen palled on to do so.
If th a t is n o t hum an intelligence
p u t into in anim ate m achinery, w h at
is it?
A nd th e re ’s th e cash reg ister and
the co m p u tin g scales, and au to ­
m atic reg isters for stockkeeping
and inventories, and tim e m achines
—all unknow n to th e m an of 1860,
and all tinged w ith the m agic of h u ­
m an genius for the facilities of busi­
ness and business records. W e no
longer have tim e to stam p letters
by hand or even by m achinery in
big business. A n autom atic device
reg isters the n u m b er of letters we
m ail and we pay th e postage w ith ­
o u t the w aste of postage stam ps,
m ucilage, licking and cancelling.
W e do our w eighing and m easuring
(b oth liquid and lineal) by m achines
of w hich th e business m an of 1860
never dream ed.— Chicago Jo u rn al
of Com merce.
K ansas has its “Sockless J e r ry ”
Sim pson, and Io w a now has a sena­
to r who refuses to w ear a dress suit.

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

T

=

.......-

■"" '

BANKER

"

Jan u ary , 1923

—■

When^our Customers
Need Financing
Business concerns frequently seek their
banker’s advice when contemplating
a bond issue. Public officials likewise
look to local bankers to aid them in
financing public undertakings.
In such matters, the banker is well fitted
to help plan the financing, but he may
not be prepared to handle the under­
writing and distribution of the bonds.
We are always glad to have bankers
consult us about such problems. The
benefit of our long experience in under­
writing corporation and public bond
issues is oSered to banks without any
obligation whatever being incurred.
We value the opportunity to be of ser­
vice in the making of a bond issue in
which a bank may be interested, fully
as much as we do the opportunity to
submit offerings for the investment
of the bank’s own funds or for resale
to its customers. Ask us for proof of
this when the occasion arises.
F E -1 7

H A LSEY , S T U A R T & C O .
IN C O R PO RA TED

C HICAGO
2 0 9 S. La Salle Street
D ETR O IT
Ford Building

NEW YORK
14 Wall Street
MILWAUKEE
1st Wis. N at’l Bk. Bldg.

B O ST O N
10 Post Office Sq.
ST. LO U IS
Security Building

PH IL A D E L PH IA
Land Title Building
M IN N E A PO L IS
Metropolitan Bk. Bldg.

T h e D u b u q u e N a tio n a l B a n k
DUBUQUE, IOWA

Deposits O ver $2,000,000
Keep us in m in d --

1
1
1

TH E N O R T H W E S T E R N

Jan u a ry , 1923

41

BANKER

51

W h a t is G eneral M otors?
is an operating
corporation owning the plants,
properties and other assets o f its manu­
facturing divisions. It also owns part or
all o f the stock o f other companies con­
nected with its activities.
There are 3 3 manufacturing organi­
zations, 28 sales companies and 1 0 m is­
cellaneous companies, a total o f 71 units
in the General M otors family which has
pioneered in the autom otive industry,
helping to produce more economical
automobile transportation for people
and goods.
In addition,General M otors has large
investm ents in factory branches, service
stations, and retail stores in the principal
cities o f this country and Canada.
Its overseas selling organizations
cover every part o f the globe where
motor cars are used.
e n e r a l

G

M

o t o r s

Besides the Buick, Cadillac, Chevrolet,
Oakland, Oldsm obile and G M C Truck,
General M otors units make:
Fisher Bodies
Delco Light and Power Plants
Frigidaire Electric Refrigerators
Hyatt Roller Bearings
New Departure Ball Bearings
Klaxon W arning Signals
Harrison Radiators
Delco Starting Systems
Remy Starting Systems
Jaxon Rims and W heels
Dayton W right Special Bodies
AC Spark Plugs and Speedometers

Materials for these automobiles and
accessories are purchased from more
than 3,0 0 0 different business firms—an
impressive reminder o f the way in which
the prosperity o f the whole nation is
bound up with the prosperity o f the
motor industry.

booklet entitled, “ P l a n t s a n d P r o d u c t s , ” givin g detailed
information w ill be mailed i f a request is directed to the Department
o f Financial Publicity, General Motors Corporation, N e w York.

clA T

GENERAL MOTORS
M a k e r o f P assenger C ars
BUICK

•

CADILLAC

•

CHEVROLET

•

OAKLAND

•

and

T

rucks

O LDSM OBILE

•

CMC

Its D ivisions and Subsidiaries make these A c c e s s o r i e s , P a r t s a n d E
which contribute to the merit o f many trustworthy cars
Fisher Bodies

q u i p m e n t

• Remy Starting Systems • Delco Starting Systems • Delco Light and Power Plants
Harrison Radiators • Jaxon Rims * Klaxon Horns • Hyatt Roller Bearings
Frigidaire • New Departure Ball Bearings • AC Spark Plugs

General Motors Acceptance Corporation which finances General Motors products


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

TRUCKS

42

TH E N O R T H W E S T E R N

BANKER

Jan u ary , 1923

liswiiuuiniinjinnjiniuuuuin

I

s

The Judgment of
Time
a

A first mortgage secured by real estate
is the OLDEST, SIM PLEST and SAFEST
form of investm ent.

ffl

B illions of dollars in first mortgages
have been made w ithout the loss of a
dollar in principal and interest.

I

Panics and prosperity, deflations and
inflations, every ailm ent known to busi­
ness, have racked the structure of finance.

38

n

But in all these changing times a well
secured first mortgage on real estate or
a first mortgage bond has been the one
sure and safe refuge for the investor.

s
I
i

Today is no exception.
Write for our circulars.

i^nnnnnnnnnnMiJuuinnnnnRiinniinmnnmuinjumm
s

THE CLEVELAND D ISC O U N T
COM PANY
F IR ST M O R T G A G E S O N REAL E STA T E a n d F IR S T M O R T G A G E REAL E STA TE BO ND S
NEW YO R K
ST. LOUIS
BALTIMORE


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

MILWAUKEE
PHILADELPHIA
CHICAGO

LOS ANGELES
DES MOINES
w a

^ h in c t o n

M

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BOND

BANKER

SECTION

Investment Bankers Close Successful Year,
Greeting 1923 with Confidence
B y Leslie Hanson
Investment Editor Northwestern Banker

(C ontinued from page 17)
by follow ing the course of bond av­
erages as prep ared by the N ew Y ork
H erald. In the first half of 1922
bond prices advanced w ith com m od­
ity prices. T h e H e ra ld ’s averages
clim bing from 89.19 to 95.13 in the
nine m o n th s ending w ith Septem ber.
In th e last half of 1921 th e bond av ­
erages advanced from 79.79 to 88.02.
D u rin g the period from June, 1921,
to Septem ber, 1922, bond prices ad ­
vanced an average of 16 points. F ol­
low ing is a com parison of T h e H e r­
ald’s bond averages w ith D u n ’s
com m odity index, show ing the
m ovem ent of securities in keeping
w ith the p u rch asin g pow er of the
d o llar:
comBond
modity
A verages

Index

Ja n u a ry ........
89.19 164.444
F eb ru a ry ...........
89.80 164.974
M a r c h .................
90.77 169.721
92.93 166.263
A pril _____
M ay _______
93.29 168.096
Ju n e ______________ 92.57 169.997
J u l y ....................
93.54 173.743
94,72 173.558
A u g u st _____
S eptem ber .......
95.13 172.479
O ctober .....
94.51 175.649
N ovem ber _________ 93.25 182.291
An indication of the activity in
bonds th e p ast year is the volum e
of sales on the N ew Y ork Stock E x ­
change, w hich exceeded four billion
dollars, th e larg e st single y e a r’s
tu rn o v er in bonds in the h isto ry of
the exchange.
T h e m ost active
m onths on the exchange w ere
M arch, A pril and M ay. . D ealings
in U n ited S tates gov ern m en t securi­
ties w ere exceptionally heavy, all
the v ictory and liberty issues a t­
tain in g new high levels.
T h e volum e of new financing also
o u tstretch ed any previous m ark, the
dem and for new capital being g re a t­
est from public u tility corporations,
w hich have sold m ore th an one bil­
lion dollars in new securities durin g
1922, w hich beats 1921 by several
h u n d red m illions.
In the first ten
m onths of the year the volum e had
exceeded th e full year of 1921 by
ab out $200,000,000.
M unicipal fi­
nan cin g reached a new high record,
soldier bonus and road bonds caus­

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

43

ing the sale of m any m illions m ore
than any previous year.
A n In te re stin g B udget
T h e follow ing b u dget furnished by
a college p resident gives us som e­
thing to th in k about :
W e squander every y e a r:
$2,100,000,000 for sm okes (cigars,
cigarets, snuff, etc.).
$1,000,000,000 for movies.
$2,230,000,000 for candy.
$1,950,000,000 for cosm etics, p er­
fume, scented toilet soap.
$500,000,000 for jew elry.
$350,000,000 for furs.
$300 000,000 for soft drinks.
$50,000,000 for chew ing gum .
$3,000,000,000 for races, joy rides,
and pleasure resorts.
F o r luxuries of all kinds, we spend
y e a rly : $22,700,000,000.
A g a in st this we spend yearly :
$1,000,000,000 for all education.
$650,000,000 for grade schools.
$150,000,000 for colleges and p ro ­
fessional schools.
$100,000,000
for
public
high
schools.
$20,500,000 for norm al schools.
$25,000,000 for all church schools
and colleges.
P rices in G erm any
A Colum bus, Ohio, gentlem an,
w ho was in G erm any late last sum ­
mer, b ro u g h t hom e tw o tru n k s full
of clothing and underw ear. H e had

no duty to pay on these tru n k s be­
cause his to tal expen d itu re for th eir
co n ten ts totaled less th an one h u n ­
dred dollars.
H e has one neat business suit,
wool, th a t cost him $1.30 (A m erican
m oney) ; another m uch finer in qual­
ity he paid $3.90 f o r ; w ith tw o good
pairs of shoes a t 30 cents and 50
cents. A n overcoat th a t w ould have
cost him $100 here, he g o t for $10.
T hese facts are m entioned as illus­
trativ e of the economic stress of Ger­
m any follow ing the w ar. W e can
only im agine th e w ages and “sta n d ­
ard of living” w hich m u st prevail
am ong w orkm en in the clothing and
shoe m an ufacturing trades. P re ­
sum ably o th er trad es are sim ilarly
affected. A nd those w ho enjoy p u r­
suing th in g s into the corners and
pockets of probability m ay possibly
be able to conjure up p ictu res of the
p lig h t A m erican in d u stry in all lines
w ould now be in if w e w ere w ith o u t
tariff protection ag ain st im ports.—
C hicago Jo u rn al of Com merce.
H idden M oney
S tatistics show th a t the p ercen ­
tag e of m oney lost outside of banks
is g re a te r th an th a t lost th ro u g h
bank failures by over 240 per cent.
A nd y et people will store th eir
m oney aw ay in stockings, bureau
draw ers, m attresses, carpets, etc.,
w aitin g for the thieves and flames.
T he stories of serious and pitiable
losses of this kind published during
the p ast year w ould fill a volum e.
T hey show th a t m any m urders have
been caused by hidden m oney— in
som e cases for ridiculously small
am ounts.— C harles Blake Clarke.

Des Moines Bank Conditions
S tatem en t of the condition of all B anks in Des M oines, Iow a,
M em bers of the Des M oines C learing H ouse A ssociation
as m ade under date of D ecem ber 11, 1922.
Loans.
Des Moines N ational Bank...... .. ...... $ 9,768,000.
Iowa N ational Bank..... ................ .... 10,738,000.
V alley N ational Bank.................... ...... 4,457,000.
Capital City State Bank............. ...... 2,272,000.
Iowa Trust & Savings B ank...... ___ 1,839,000.
P eople’s Savings Bank .............. ...... 3,834,000.
Home Savings Bank............................ 2,335,000.
Commercial Savings Bank..........
3,428,000.
Central State Bank ____ ______ ...... 5,330,000.
M echanics Savings Bank.... ............... 2,061,000.
Iowa Loan & Trust Co. ................ ..... 8,208,000.
Bankers Trust Co. ............. ......... . ..... 4,631,000.

D eposits.
$12,700,000.
12,311,000.
3,581,000.
2,643,000.
2,084,000.
3,972,000.
2,751,000.
3,657,000.
5,860,000.
2,263,000.
7,624,000.
3,694,000.

Cash.
$3,114,000.
3,390,000.
754,000.
464,000.
341,000.
839,000.
621,000.
523,000.
1 ,202 ,000.
309,000.
1,242,000.
772,000.

Borrowed
Money.
None
665,000.
257,000.
None
N one
292,500.
25,000.
None
N one
N one
958,000.
313,000.

TH E N O R T H W E S T E R N

44

BANKER

E S T A B L I S H E D 1880

Pato, ÎIU'Mut* Cu*
&

T H E R O O K E R Y , C H IC A G O

BONDS AND

N O T E S OF

U. S . G O V E R N M E N T
FOREIGN G O V E R N M E N T S
AND THEIR

MUNICIPALITIES
RAILROADS
PUBLIC UTILITIES
INDUSTRIALS

MEMBERS
NEW Y O R K STOCK EXCHANGE
BOSTON STOCK EXCHANGE
CHICAGO STOCK EXCHANGE
DETROIT STOCK EXCHANGE
NEW Y O RK COTTON

EXCHANGE

CHICAGO BOARD OF TRADE

I N T E R E S T E D P R I M A R I L Y IN T H E O R I G I N A T I O N A N D D I S T R I ­
B U T IO N
OF
IN V E S T M E N T
S E C U R IT IE S .
FIF T E E N O F F IC E S
IN T H E P R I N C I P A L F I N A N C I A L C E N T E R S O F T H E E A S T A N D
M ID D L E W E S T , C O N N E C T E D BY O U R O W N
P R IV A T E W IR E
s y s t e m

F R O M

, ena ble
B A N K S

u s

ON

MINNEAPOLIS

h a n d l e

I N V E S T M E N T

MILWAUKEE

ST. PAUL

DULUTH

ALBANY

WORCESTER

e f f ic ie n t l y

A N Y

CHICAGO

NEW YORK

BOSTON

t o

in q u ir ie s

S E C U R I T Y .

DETROIT

PHILADELPHIA
GRAND RAPIDS

SPRINGFIELD

HARTFORD

p r o v id e n c e

Mortgages and
First Mortgage Bonds
Desirable for

Bank and Trust Funds
The Old Colony State Bond Company solicits
your inquiries regarding the service offered
by our company and the remunerative value
and security of our bonds.
...O F F IC E R S ...
E. G. RANDALL,

L- D- ROSS,

P r e s id e n t

S e c re ta r y

FRED A. UTTERBACK,

V ice P r e s id e n t

N. G. FERRING,

M an ager

O ld C o lo n y S t a t e B o n d C o m p a n y
Old C olony B u ild in g , D es M o in es, Iow a

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

Jan u ary , 1923

T E L E G R A M “C H E C K IS G O O D
TODAY”
(C ontinued from page 32)
drew th e check and w ro te th e letter
inclosing it. In fact it w as not
know n, w hen K irbyville B ank re­
ceived it for collection, th ere w ere
any funds on hand to pay it as in­
dicated by the wire.
In the p resen t case, no reference
to certification is m ade. B u t the
court holds th a t the d efen d an t’s
telegram did n o t co n stitu te a p ro m ­
ise to pay, w hich m eans practically
the sam e thing. A t least, th e resu lt
is the sam e, for, as it appears, the
bank w as entitled to apply th e de­
posit to its claim again st th e de­
positor and n o t in any w ay liable
on the check.
T ran sactio n s of this ch aracter
have freq u en tly been the su b ject of
litigation. In cases decided in o ther
states, involving such a tran sactio n ,
the question to w hich th e courts
have given th eir atten tio n w as
w h eth er or n o t th e exchange of tele­
gram s co n stitu ted a certification.
I t has been uniform ly held th a t if
the telegram to th e draw ee reads,
in effect, “W ill you p ay ” a certain
check and th e answ er is, in effect,
“W e will pay,” th ere is a certifica­
tion and th e draw ee bank is liable.
O n the other hand it is held th at,
no m a tte r w h a t the form of the in ­
quiry, if the answ er is to the effect
th a t the check is good, or does not
contain an explicit prom ise to pay,
th ere is no certification.
T h e m ethod of han d lin g the
tran sa ctio n by th e San A ntonio
B ank is in terestin g . T h e telegram
from the K irbyville B ank w as no­
tice th a t it held the d raft sim ply for
collection, and w anted th e San A n ­
tonio B ank to answ er if it w ould
pay th e sam e, no tim e b eing speci­
fied, b u t th e presu m p tio n is th a t it
w ould be paid upon p resen tatio n .
T h e San A ntonio B ank did not
answ er th e question in the affirm a­
tive, th a t it w ould th en and th e re ­
after pay it, b u t sim ply said it “ is
good to d ay ,” from w hich fire K irb y ­
ville B ank should have inferred and
understood th a t it m ean t it m u st be
presented “to d ay ” and no oth er day.
I t can be inferred from t h i s :
T h a t th e holder of a check, w ho
w ishes to find out w h e th e r or not
it will be paid, should w ire the
draw ee asking if the check will be
paid. A nd he should in sist on a di­
rect answ er, one w ay or the other,
to th a t question. H e should realize
th a t the statem en t th a t the check is
good m eans n o th in g so far as the
draw ee’s liability is concerned. On
the other hand, a draw ee bank,
w hich does n o t w ish to have its tele­
gram construed as a certification,

January, 1923

TH E N O R T H W E S T E R N

BANKER

45

should avoid th e use of th e w ords,
‘W e will p ay ” and sim ply say the
check is now good.
Should Encourage Good Reading
The p art that banks can play in
bringing to the attention of their cus­
tomers the desirability, pleasure and
profit to be gained by reading good
books is shown in a recent article in
the Bulletin of the American Library
Association by J. H . Puelicher.
“A list of books on national and in­
ternational affairs could be placed in
the pass book of the business man,”
said Mr. Puelicher. “A list of books
concerning modern accountancy, busi­
ness law and practice could be given
out with the accountant’s pass book,
while a list on composition and letter
w riting might be handed the stenog­
rapher. A t the savings window, lists
of books on literature could be dis­
tributed, and lists of miscellaneous
books m ight be inclosed with the
monthly statement.
“The intelligence test during the
w ar showed much illiteracy.
It
aroused many to serious thought. It
made many feel that they had not prop­
erly supported the public school sys­
tems. It showed that the ills of A m er­
ica were largely economic.
“The fact that the banker and the
teacher had often co-operated, the
teacher in speaking before bankers’
conventions, the banker in serving on
school boards, brought forth the idea
— maybe the banker could further aid
the teacher.
“The committee on public education
of the American Bankers Association
had ten lectures prepared to be deliv­
ered before seventh and eighth-grade
pupils, high school pupils and college
and university students, believing that
it was but natural for the banker to
be pressed into service where knowl­
edge of elementary economics was
concerned.
“Now, if the bank can go further
and help the libraries to encourage the
reading of good books, it will be but
extending its service tow ard overcom­
ing our economic ills.”
V illage Banks in N ew York
E very foreign quarter of New York
City is filled with more or less obscure
little banking establishments that
might almost be called the country
banks of the big town. Few country
banks of the smallest western hamlet
do business in such unpretentious
quarters as these financial institutions
of New Y ork’s foreign colonies.
The am ount of business they trans­
act is by no means to be gauged by the
appearances of the street in which they
are situated or by the worn old
counters and cashier’s cages that

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

E TAKE pleasure in announc­
ing that we are now repre­
sented in Iowa by both

M r. Edward J. Kelly
and

M r. Maurice F. Leahy

B R O K A W
AN D

C O M P A N Y

1 0 5 S o u th La S alle S tr e e t,

C h icago

IN O U R N E W Q U A R T E R S
(— Better able than ever to serve you.)
Steady growth, has m ade n ecessary larger quarters.
now located in our new offices at 306 H ippee Bldg.

W e are

Our stead ily increasing list of individuals and banks who
find here th e b est in in vestm en t secu rities and service w ill
find us better equipped than ever to be of real assistan ce.

J. S. Corley, Mgr. Investment Dept.

THE
IOW A LO AN A N D T R U ST CO.
- BANK DES M O I N E S ,

I OWA

TH E N O R T H W E S T E R N

46

T H E FIR M

BANKER

Jan u ary , 1923

OF

P R IES TE R , Q U A IL & C U N D Y
ANNOUNCES
FIRST, TO

ITS O R G A N IZ A T IO N

D E A L IN

EFFECTIVE

INVESTMENT

IN T H E P U T N A M

BUILDING,

BONDS,

DECEMBER

WITH

DAVENPORT,

OFFICES

IOWA

PERSONNEL
RAYMOND G. CUNDY
F O R M E R L Y W IT H H A R R IS T R U S T A ND SA V IN G S B A N K , C H IC A G O

JO H N J . Q U A IL
F O R M E R L Y A S S O C IA T E D W IT H N A T IO N A L C IT Y C O ., N E W YORK

H E N RY C. P R IE S T E R
R E C E N T L Y W IT H H A R R IS T R U S T & S A V IN G S B A N K , C H IC A G O

D E C E M B E R F I R S T , 1922

A Complete
Financial Service
IT H enlarged facilities and g re ater
resources T he Seaboard N ational
B ank, now located in its new m odern
equipped bank building, is in a position to
render its custom ers and friends a financial
service of larger scope th an heretofo re—and
a service, too, th a t will m eet your every re ­
quirem ent.

W

O u r officers will welcom e the opp o rtu n ity
to explain in detail th e benefits you can de­
rive from it in a personal and business way.

The Seaboard National Bank
of the City of New York
B road a n d B eaver S tr e e ts

Capital, Surplus and Profits Over
Eight Million Dollars
The New York Correspondent of Over 4,000 Banks


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Federal Reserve Bank of St. Louis

Jan u a ry , 1923

TH E N O R T H W E S T E R N

would be considered shabby in the
general store of a prairie village.
They are, in fact, small town banks
serving a community that covers per­
haps no more than a couple of blocks
in the inform al, miscellaneous ways
that the small town bank serves its
customers.
These banks are centers for home
town gossip. The constant contacts
connected with savings and with the
sending of money to the old land keep
the news coming through at a lively
rate. O ften they receive important
mail that may not be trusted to a
rooming house address.
They are perhaps the best source of
local news of m inor international im­
portance, and are for many persons
about the only easily available source
of inform ation about transportation
routes and commerce, maps and money
of the many little states that are some­
how managing to survive. The sale of
steamship passages is, of course, a
rather im portant branch of their busi­
ness, but they do a hundred other
things for their clients.-—-The New
York Sun.
M eet w ith P resid en t H ard in g
A committee of the American Bank­
ers Association recently paid a visit
to the W hite House to talk over with
President H arding the m atter of the
ship subsidy bill, of which they are in
favor. Included in the group w e re :
W . G. Fitzwilson, secretary of the as­
sociation; Thomas B. McAdams, for­
mer president; J. H . Puelicher, of
Wisconsin, president; W alter W .
Head, vice president, and F. N. Shep­
ard, executive manager at New York.
“T h e big g est stake in th e w orld to ­
day,” says th e P hiladelphia P ublic
L edger, “is th e w o rld ’s oil supply.”
T h is is m entioned apropos to the
N ear E a s t C onference in w hich the
A llies are u n d erta k in g the usual
secret agreem ents and trades in the
grab for w ealth — in all of w hich
A m erica is left outside. B ut W a sh ­
in g to n ’s w arn in g is in th eir ears now.
W e m u st have an open door in A sia
M inor. T h e U nited S tates is not
prep ared to have her business in te r­
ests abroad sh u t out. W e are not
devoted to th e “idealism ” th a t w ould
strip us of proper com m ercial oppor­
tu n ity .— C hicago Jo u rn al of Com­
merce.
P ad erew sk i has given up politics
to re tu rn to the concert stage. T his
m ig h t su g g est som ething to Mr.
H e arst, w ho used to play in the
banjo club a t college.— Life.

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Federal Reserve Bank of St. Louis

47

BANKER

K. N . & K. Service
p la c e s a t th e d isp o sa l o f y o u r d ep o sito rs, w o r ld w id e fo r e ig n e x c h a n g e f a c il­
it ie s , h i g h l y o r g a n i z e d a n d efficien t.
W e h a v e a r r a n g e m e n ts u n d er w h ic h b a n k s and b a n k e r s a s p rin cip a ls can
d r a w t h e i r o w n d r a f t s o n E u r o p e a n c o u n t r i e s or r e m i t b y m o n e y o r d e r to
p a y e e s a b ro a d in p la c e s w it h or w it h o u t b a n k i n g f a c ilitie s .
D a ily

fo reig n

exchange

q u o ta tio n s b y m a il

or telegrap h .

K . N. & K . T r a v e l e r s L e t t e r s o f C r e d it a n d T r a v e l e r s C h e c k s a r e p a id in a ll
fo reig n co u n tries a t th e cu rren t ra te of e x c h a n g e and are u sed b y e x p e ­
rien ced tra v elers ev ery w h ere.
«

Knauth.Nachod &Kuhne
120 Broadway

NEW YORK

E

s s e n t ia l s
o f SERVICE
Investors will find, in their
dealings with our various
offices, complete facilities for
quoting, buying, selling or
analyzing securities. Private
wire connections from coast
to coast and offices in six­
teen cities, enable us to ren­
der exceptional service to
dealers, banks, institutions
and private investors.

A. B. Leach &Co.,Inc.
105 South La Salle Street, Chicago

48

TH E N O R T H W E S T E R N

BANKER

Jan u a ry , 1923

Greetings
to th e

American
Banker

J ^ U R I N G the year just closed, the Hawkins
M ortgage Company made a real contribution to
Am erican banking in the organization of several new
and flourishing W elfare Loan Societies.
W e appreciate the co-operation that has been
extended by many bankers and it w ill be our steadfast
purpose in 19 23 and in the years to come to justify
this confidence.
Plans for 1923 provide for the opening of several
new W elfare Loan Societies in addition to the 32
already operating and we hope that the new societies,
like those already doing business, w ill serve as a valu ­
able auxiliary to the commercial banks of the
community.
The directors, officers and entire staff of the
Hawkins M ortgage Company unite in extending you
their best wishes for a H appy N ew Year.

HAWKINS MORTGAGE CO.
PORTLAND

INDIANA

«

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Federal Reserve Bank of St. Louis

HAWKINS =

=c>

TH E N O R T H W E S T E R N

Jan u a ry , 1923

BANKER

49

IO W A FA RM M O R T G A G E S E C T IO N
The Northwestern Banker is the official publication of the Iowa Farm Mortgage Association
O F F I C E R S — Varlck C. Crosley, Webster City, Pres.; E . H. Lougee, Council Bluffs, V-Pres.; I. C . Stanley, Cedar Rapids, Treas.; F . C . Waples, Cedar
Rapids, Sec’y.
E X E C U T I V E C O M M IT T E E
Griff Johnson, ex-officio................... Des Moines
Daniel Rhodes.......................... ..........Fort Dodge
I. C. Stanley................................... Cedar Rapids
Varick C. Crosley............................ Webster City
f . C. Waples................... I............ Cedar Rapids
Geo. W . W illiam s............................ Des Moines
E. H. Lougee................................. Council Bluffs

1

Life Insurance Companies Have Doubled
Farm Loan Investments in 7 Years
U R IN G th e p ast seven years
life insurance com pany in­
v estm en ts in farm m ortgages
have m ore th an doubled, said W il­
liam H . K ingsley, vice-president of
the P en n M utual Life In surance
C om pany speaking before the six­
teen th annual convention of the A s­
sociation of Life In su ran ce P re si­
d ents in N ew Y ork.
F ig u res re p resen tin g the m o rt­
gage holdings of life insurance com ­
panies w hose to tal assets are over
90 per cent of th e ag g reg ate assets
of all A m erican com panies for the
y ears 1914 and 1921, show th a t at
the end of 1914 the total m ortgage
loans am ounted in round figures to
$1,600,000,000, of w hich over $600,000,000 or 39.12 per cent w ere farm
m o rtgages, and a t the end of 1921 the
to tal m o rtg ág e loans had risen to
$2,556,000,000, of w hich $1,306,000,000 or 51.11 p er cent w ere farm m o rt­
gages.
T h e g re a te st increase, $320,000,000 or over 48 per cent of the total
increase in farm m ortgage in v est­
m ents, w as in the N o rth w e stern sec­
tion of the country. T h e S outhw est,
w ith $170,000,000 or nearly 26 per
cen t w as the next in im portance fol­
lowed by the C entral N orthern, w ith
$64,000,000 or nearly 10 per cent. I t
will th u s be seen th a t nearly 75 per
cent of the to tal increase in farm
m o rtg ag e loans in the g re a t agricul­
tu ral sections of th e N o rth w e st and
Southw est; and while the population,
farm values and ag g reg ate farm
loans of these sections increased ap ­
p ro x im ately 50 per cent in ten years,
the farm loans of life insurance com ­
panies increased 75 per cent in seven
years. In ra te per cent of increase
of 1921 farm loans over th e am ounts
in 1914 in the different sections, how ­
ever, n eith er N o rth w e st nor S o u th ­
w est stan d s first. T h e g re a te st rela­
tive increase occurred in the Gulf
and M ississippi V alley states, w here
farm m o rtg ag e loans of life in su r­
ance com panies in 1921 exceeded
th ose of 1914 by m ore th an 233 per

D


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Federal Reserve Bank of St. Louis

cent. T h e S outh A tlan tic states fol­
low w ith an increase of 202 per c e n t;
the N o rth w e st third, w ith 112.94 per
cent increase; the S outhw est fourth,
w ith 90.95 per c e n t; the Pacific fifth
w ith 84.70 per cent and the C entral
N o rth ern sixth, w ith 55.26 per cent.
T h u s the states south of the Potom ac
and Ohio and east of the M ississippi
show by far the m ost rapid increase
in farm m o rtgage investm ents of life
insurance com panies of any section
of the country. T hese gains com ­
p o rt generally w ith the m arked im ­
provem ent w hich has characterized
ag ricu ltu ral conditions of the S outh­
ern states d u rin g the p ast decade.
As com pared w ith th e g re a t in­
crease of $650,000,000 in the farm
m ortgage investm ents, th e increase
in city m ortgage loans—$242,000,000
-—show by c o n tra st how g re at has
been the sw ing tow ard farm loans by
life insurance com panies in these
seven years. T h e M iddle A tlan tic
show s the highest ra te of increase in
city m ortgages 35.95 per cent, no
o th er section show ing as m uch as 20
per cent increase, th e industrial sec­
tions of N ew E ngland, M iddle A tlan ­
tic and C entral N o rth ern states to ­
g eth er g e ttin g about 60 per cent.
W hile in tere st rates show a
m arked increase on new loans m ade
in 1921, the average for the w hole
country having been 6.46 per cent,
the tide tu rn ed before the m iddle of
this year, and the tendency has since
been tow ard low er ra te s according
to rep o rts from the leading farm loan
life insurance com panies, though re­
p o rts as to specific rates in the differ­
ent states are not y et available.
T h e average in tere st ra te of life
insurance com panies for m ortgages
on other th an farm p ro p erty is slig h t­
ly below the average for farm m o rt­
gages, being 5.58 per cent as against
5.86 per cent on m ortgages o u tstan d ­
ing D ecem ber, 1921, for the entire
c o u n try ; b u t in 10 states, having
over 60 per cent of the to tal farm
loans the average in tere st rates on
farm p ro p e rty w ere low er th an th e

rates for m ortgages on o th er p ro p ­
erty. In o th er w ords, the rate of
in tere st realized by life insurance
com panies on nearly tw o -th ird s of
th eir farm m ortgage loans is low er
than th a t received from oth er hold­
ers of th eir lo a n s ; and the farm er
in the states holding th e g re a te r p ro ­
portion of the loans o b tain s not only
a low er rate b u t m ore ad v antageous
term s than the m ortgagor of city
property.
D u rin g th e p ast seven years the
life insurance com panies not only
g re atly increased th e ir m ortg ag e
loan investm ents, but, p articu larly
after the entrance of the U nited
S tates into the W o rld ’s W ar, the
com panies becam e large in v esto rs in
governm ent securities. A t the p re s­
ent tim e about 11 per cent of their
total adm itted assets is invested in
U nited S tates govern m en t bonds.
As the necessity for fu rth e r in v est­
m ent in governm ent securities has
now term inated, th ere will, un ­
doubtedly, be a y et g re a te r increase
in insurance com pany holdings of
m ortgages, and p articu larly of m o rt­
gages secured by farm properties.
A C om m unity F a ir
E very neighborhood should have
a com m unity fair. T h is is one of
the g re a te st agencies for stim u latin g
friendly rivalry in all good w ork.
In this w ay th e b ig g est achieve­
m ents of individuals are b ro u g h t to
the atten tio n of all the people. M ore­
over, the train in g in cooperation and
public service th a t th e people g et
in developing a com m unity fair p re­
pares them for progressive coopera­
tion along m any o th er useful lines.
F arm ers who have m ade a success
of a com m unity fair acquire a new
pride in them selves and th eir lo­
cality. I know h ard ly a n y th in g else
req u irin g so little effort th a t is b e t­
ter w o rth w hile than the com m unity
fair.—T h e P rogressiv e F arm er.
True love is the parent of a noble
humility.— Channing.

50

TH E N O R T H W E S T E R N

BANKER

Jan u ary , 1923

U. S. Needs “In tern atio n al B an k ers”

FARM LOANS
Five Reasons W h y You W ill
A p p r e c i a t e Ou r S e r v i c e
1.
2.
3.
4.
5.

We offer liberal rates.
Our Inspection Service is prompt.
We lean up to $100 an acre on Iowa land.
We use our own funds—closing promptly.
Service to applicants is our first thought.

Send us your applications if you want genuine service.

FARMERS BOND & M ORTGAGE CO.
F ifth Floor H ippee B ldg.

DES MOINES

E D W IN HU LT, P r esid en t

Twenty-five Years in the Mortgage Business

FARM

LOANS

niiiiitiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiira

American Mortgage & Securities
Company
CEDAR RAPIDS, IOWA
H o m e OfHoe
M an ch e ste r, Io n a

CAPITAL
$ 2 0 0 ,0 0 0 .0 0

G e n e ra l Office
H lg le y B u ild in g
C ed a r R a p id s , I o w a

Farm Loans
Send us your applications. Rates and terms liberal for 5, 7, 10 or
20 years.
We have plenty of money for good loans and can furnish funds
promptly.
Tell us now what you want.
We can give you immediate attention.

Over $25,000,000.00 o u t s ta n d in g

L eav itt & Jo h n so n T r u s t C o.
Waterloo, Iowa


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Federal Reserve Bank of St. Louis

Frank O. Lowden, form er governor
of Illinois, statesman and practical
“d irt” farm er, has been addressing
the American Farm Bureau F edera­
tion. H ere is his statement of the
present economic problem :
“Until we restore the logical rela­
tionship between the prices of farm
products and those of other commod­
ities, general and permanent prosperity
is impossible.”
H e agrees with Otto Kahn, finan­
cier, and a growing member of pub­
licists, economists and other politi­
cians that the means for such restora­
tion are to be found abroad. “O ur
international bankers and statesmen,”
he says, “will find some way to get
our surplus raw materials to the
countries that need them.”
W hat way? T hat’s the question.
It is the most im portant question for
all of us, farmers, retailers, whole­
salers, m anufacturers, wage-earners,
in succession. Is there a way?
Europe owes us billions, which she
cannot at present pay in gold, and
which our tariff forbids her paying
to a great extent in goods. Europe
cannot even pay in gold or goods for
foods and materials she needs of us.
W e have the larger share of the
w orld’s gold and are so much the
creditor nation that we need to ex­
port credit in order to let our debtors
start up work.
Governor Lowden says our bank­
ers and statesmen have so far ne­
glected what he calls “the third meth­
od of payment,” which is to transfer
credit to Europe by making capital
investments over there.
W e are new to such a method, but
some day we shall learn how to em­
ploy it, he says. W e had surplus cot­
ton, and instead of burning half of it,
which would have been to our advan­
tage, he asks whether we could not
have found some way to get our sur­
plus to the idle spinners in Europe,
even if we had been compelled to take
mortgages upon the plants or stock
in the enterprises.
That is what we must come to. It
is the way out. O ur demagogues, the
conscious ones are constantly inveigh­
ing against the international banker,
who might be as terrible a monster as
a ring-tailed Chinese dragon.
“International bankers” has a son­
orous and therefore a malefic sound.
I t ’s a godsend to the political agitator.
My, my, what nightmares the inter­
national banker can afford the simple
citizen! The international banker
made the Great W ar, and now he is
making world-wide poverty. H e is

Jan u a ry , 1923

TH E N O R T H W E S T E R N

all the seven Beasts of the Apocalypse
in one.
The plain tru th is that the United
States has been suffering more than
necessary for lack of the full-fledged
international banker. H e has an in­
dispensable and all-im portant func­
tion in m odern world-wide economy.
American bankers have been able do­
mestic financiers, but they were unac­
customed to making
investments
abroad, where the new creditor na­
tion situation hit them over night, as
it were, they didn’t know properly
what to do. They have been learning
in a hard school like the rest of us.
They know much more than they did
four years ago.
So that instead of getting scared
at an apparition conjured up by dem­
agogues and ignoramuses, we need to
recognize that our one best bet is the
international banker at this juncture.
It is for him to start up idle European
industries that will start our Am eri­
can products moving, that will make a
good price for our foods, that will
“restore the logical relationship be­
tween the prices of farm products and
those of other commodities” and so
give us general and permanent pros­
perity.—From editorial “Minneapolis
Journal.”
A m erican In v estm en ts
In one g roup of ten industrial cor­
p o ratio n s th ere are 778,152 sto ck ­
holders. B u t th a t isn’t a patch in
the g re a t m ass of securities in w hich
m any m illions of A m ericans have an
in v estm en t or p artic ip a tin g interest.
T h ere are 27,000,000 savings ac­
co u n ts and 64,000,000 life insurance
policies held in the U nited States,
all of w hich rep resen t to som e extent
in v estm en t in stocks. T hese alone
to tal 91,778,152. Add to them the
holders of bank stocks and stocks
of tens of th o u sands of other con­
cerns— railroads, oil com panies, in ­
d u strial en terp rises of all kinds,
m ercantile establishm ents, and we
w ould find, if statistics w ere avail­
able, an am azing total.
I t is this fact, the p ro p rie ta ry in ­
te re st held by an ex trao rd in ary p ro ­
po rtio n of the A m erican people in
w h at are called the “vested in te r­
ests,” th a t m akes uphill w ork for
the professed enem ies of private
ow nership. T h ey cannot m ake even
a den t in the soundly invested sav­
ings of the public or the stre n g th of
the com petitive system w hich re ­
w ards the in d u stries and the thrifty.
— Chicago Jo u rn al of Com merce.
Every production of genius must be
the production of enthusiasm.— Dis­
raeli.

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Federal Reserve Bank of St. Louis

5

BANKER

51

LOANS

%
FIVE,

SEVEN

OR

5

TEN

%

YEARS

L IB E R A L P R E P A Y M E N T O PTIO N S
See Us Before Placing Your Loan

M id l a n d M o r t g a g e C o m p a n y
CAPITAL $ 3 0 0 , 0 0 0 .0 0
220 T H I R D A V E .

CEDAR

R A P I D S , IO W A

OFFICERS
F . C . W A P L E S , PRESIDENT
C L I F F O R D D E P U Y , V I C E -P R E S I D E N T
R . S . S I N C L A I R , V I C E -P R E S I D E N T

I N G R A M B I X L E R , SEC RETA RY -TREA SUR ER
R . J . S O E N E R , A S S IS T A N T S E C R E T A R Y

$100.00 Per A cre
We have a very attractive rate for choice
loans up to $100.00 per acre— In Good
Old Iowa.
WHAT HAVE YOU?

STANLEY-HENDERSON COMPANY
FARM MORTGAGE BANKERS
207-214 Higley Building

$300,000.00

CEDAR RAPIDS, IOWA

W aterloo Bank & T ru st C om pany
Solicits Your W aterloo B usiness
DEPARTMENTS
COMMERCIAL BANKING
INVESTM ENTS

SAVINGS
COLLECTIONS

Farm Mortgage Loans
Member Federal Reserve System
W e cord ially in v ite all ou r frien d s w h en in W aterloo
to v isit ou r b a n k in g room s

WATERLOO BANK & TRUST COMPANY
L a fa y ette Bldg.
WATERLOO, IOWA

TH E N O R T H W E S T E R N

52

BANKER

Jan u ary , 1923

FARMERS AND MERCHANTS STATE SAVINGS RANK, MANCHESTER,
IOWA
B U R T O N C L A R K , P re s id e n t
F. E. D U T T O N , C a sh ier

Keeping Up With Your Community!
If you are contem ­
plating a new bank
structure we are
more than glad to
help you in any
way possible. We
can save you tim e
and money.

No matter where it stands, in a town of a few thousands or in
a city of a million—a bank building with all of the newest im ­
provements will not only give the citizens of the community a
more favorable opinion of the integrity and soundness of the
institution, but is a sure and quick method to increase the effi­
ciency of the bank employes—thereby assuring you of increased
deposits in a short time.
Rarely does one see a banking institution in any town—with a
new and up-to-date building—trailing along second or the last
in deposits. It is the most forceful advertisement that a bank
could possibly obtain—it bespeaks strength and security—con­
sequently you will find that most always the bank with the new
building is leading in deposits and popularity among the citizens
of the town.

THE LYTLE COMPANY
J. A. RAVEN, President

Architects and Engineers of Complete Bank and Office Buildings

SIOUX CITY, IOWA

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

Ja n u a ry , 1923

TH E N O R T H W E S T E R N

BANK
Gan Anything New Be Said
About Letter Writing?
B y Ralph Barstow
From The Office Economist

L M O S T all m en w ho dictate,
expend the first p arag rap h of
a letter, stallin g around and g e ttin g
th eir bearings. E xam ine th e next
hun d red letters you see and note
how in d eterm in ate the first p a ra ­
g rap h is. T ry to do this stalling
around before you s ta rt d ictatin g
and let y o u r first p arag rap h in tro ­
duce y o u r read er to th e subject m at­
te r of y o u r letter.
R em em ber th a t th ere should be
a n atu ra l p ro gression of th o u g h t
from the first p arag rap h to the last
p arag rap h of your letter.
D o n ’t
skip from P o in t 4 back to P o in t 2
and th en on to P o in t 6. P o in ts
h an g on each o th er like links in a
chain. A rran g e them in y o u r m ind
before you dictate. T ra in yourself
to th in k clearly and you will then
d ictate clearly.
T h e final sentence of th e last p a ra ­
g rap h is th e m ost p o ten t line in the
l e tte r ; th e ultim ate im pression th a t
you leave. D o n ’t w aste it w ith con­
ventionalities like, “aw aiting your
early reply,” b u t use it to clinch
y o u r arg u m en t. T h is will require
th o u g h t, b u t so far as I know , no
firm ever forbids its correspondents
to think.
In every business, th ere are a num ­
ber of statem en ts th a t have to be
m ade to m any custom ers and be­
cause th ese statem en ts do not vary
from one person to another, they
can b e tte r be reduced to sta n d a rd ­
ized form p arag rap h s th a n left to
the chances of repeated dictation.
I t pays to have a book of stan d ard
form p arag ra p h s for each d ep a rt­
m ent, pro p erly num bered and w hen
you m eet one of these stock condi­
tions, dictate “ P a ra g ra p h No. 3” in
place of m um bling all th ro u g h the
w ords th a t are so fam iliar to you.
T hese form p arag rap h s should be
revised very frequently because
business conditions change and w h at
fitted a m onth ago is ju s t sufficiently
out of date to sound insincere or
w ide of the m ark.
T h e “circular le tte r” has been the
su b ject of furious debate for years.
I t has been banned w ith bell, book
and scandal and y et it survives b e­
cause it is an essential feature of

A


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Federal Reserve Bank of St. Louis

BANKER

EQUIPMENT

53

SECTION

business. W h a t has been th e m at­
ter w ith circular letters th a t peo­
ple have been so b itte r against them ?
I t is because people w ho w rote
circular letters th o u g h t of them as
circulars instead of letters and took
all the life blood out of them .
T h e determ ining factor in decid­
ing w heth er a letter is a circular let­
ter or not is not the process of dupli­
cation. T h e real te st is th e intelli­
gence w ith w hich it w as w r itte n !
Y ou have seen letters th a t w ere
especially dictated and b u t one copy

m ailed w hich w ere genuine “circu­
lar le tte rs” and you have seen le t­
ters sent out by th e th o u san d s th a t
w ere real personal letters. T h e dif­
ference lay not in the process, b u t
in th e m an w ho w ro te th e original
copy.
T h ere m ay be a m essage th a t
should be delivered to you, to me
and a thousand others. W h a t pos­
sible objection is th ere to sending
the sam e lette r to all, provided the
letters are properly addressed? You
cannot escape the conclusion th a t

Attractive Advertising Copy Prepared By
Los Angeles Bank

-if in doubt

consult your banker
business
men and women recog­
nize the soundness of that
statement.

,365 d a y s

uc cessful

S

They know from actual
experience that the advice
of their banker is invalu­
able, especially in business
matters of great imporAdvtsmg with our customers

Eighteen Banking

has always been a policy
of the Security Trust &
Savings Bank. Not in an
indifferent way, but in a
sympathetic and helpful
manner— giving advice
that is based upon years
of experience, expert
knowledge and mature
judgment.
This service is available
at any of our eighteen
banking offices.

^ K C I J R I T Y TRUST
l ^ &SAVINGS B M K

Your name irom today
Take the first

H

A V E you made any pro-

o p p o r tu n i ty to g e t
y o u r n a m e on a
Security passbook.

vision for savmg a part of your
income? Will 365 days from today
find you richer or poorer?

T h e n ca rry y o u r passbook
with you as evidence that you
have sta rte d on the road to
financial independence.

It is instinctive for you to plan for the
future— to look ahead at least a year.

O ver 200,000 local people
are the proud ow ners o f Security
passbooks. M any w ho started
with only a few dollars have
thousands today. You can dup­
licate their records if you will.

g E r . l I R I T V T iitu s T

^ &saviwcsBA1VK.
Capital and Surplus $10.350.0C0
Resources Exceed $160,000.000
Seventeen Banking Offices in LOS ANGELES

If you do not have a savings account,
open one with your spare funds, any
sum that you can conveniently deposit.
If you have a savings account, resolve
that you will double it this coming
year—and then do it.
Others save.

You can i f you try.

C E C K K IT Y

tr u st

l ^ &SAVINGSKÀ1VK
Capta! .nd Su.pl., $10,350,0»
Resources Exceed $163.000,000
Eighteen Banking Offices in los anqeles

Three unusually effective advertisem ents from th e booklet of the Security Trust and
Savings Bank, of Los A ngeles

T hose interested in financial and
especially bank ad v ertisin g copy will
find the recent series of ad v ertise­
m ents used by the S ecurity T ru s t
and Savings B ank of Los A ngeles in
southern C alifornia papers, a splen­
did exam ple of intelligent bank ad­
vertising.
W e are reproducing here th re e of
the series. T hey each contain th e
th ree requisites of real copy, 1st, ap ­
pearance attra ctiv e to the eye, 2nd,
an a tte n tio n -g e ttin g head, and 3rd,

well w orded
m uch of it.

copy— and

not

too

“ If
in
D oubt— C onsult your
B anker,” carries an unselfish and
universal appeal.
T h e ad v ertise­
m ent headed, “ Y our N am e” is a
splendid exam ple of a well p ro p o r­
tioned layout w ith a “personal ap ­
peal” head line and concise copy.
“365 D ays from T o d ay ” takes ad­
v an tag e of the every day question,
“Am I L ooking into the F u tu re ? ”

TH E N O R T H W E S T E R N

54

Y ou

BANKER

M
ay —

have all the reasons in the w orld w hy your bank
should have 90% of all the business in your com ­
m unity. You m ay be the oldest bank, w ith the
most experienced men at its helm, or you may
have b etter service—b u t for som e reason you are
n o t g e ttin g enough of the new business.
T h e bank of today is not only judged by the m en
w ho are a t its head and because of its assets and
stab ility — B U T IT IS JU D G E D BY Y O U R
B A N K B U IL D IN G A N D IT S B A N K F I X ­
T U R E S . Keep up w ith the progressiveness of
y o u r tow n and C o m m u n ity T ho u sands of bankers have vouched for our in­
terio r bank fixtures as a sure w ay of helping
along the increasing of bank deposits. A re ­
q uest for inform ation places you under no obli­
gation.

THE FISHER C O M P A N Y
Charles City, Iowa

I1

-------------------

\

ENDORSING STAMPS

—r---- n
“ Same Day Service”

DES MOINES RUBBER STAMP WORKS
D e s M o i n e s , Iow a

206 F i f t h S t r e e t

INCREASE YOUR DEPOSITS
B y th e u s e o f U n c le S a m ’s m a ils an d o u r e x p e r t A d d r e s sin g , D u p lic a tin g L e t ­
te r an d M a ilin g S e r v ic e . P r ic e s an d s a m p le s u p on r e q u e s t.

DES MOINES DUPLICATING CO.
114 W E S T

E LE V E N T H


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Federal Reserve Bank of St. Louis

S T . __________ « __________! i__________ D E S

M O IN E S , IO W A

Jan u ary , 1923

the circular le tte r has been in dis­
grace because of its lack of ch ar­
acter and not because of its circu­
larity.
L e tte r w ritin g theory m ay be con­
densed in four w o rd s : brevity, in ­
telligence, personality and reaso n ­
ableness.
In all fields of com position, the
first rule m ust be th a t of u n ity of
th o u g h t. If you are w ritin g a sen ­
tence, the elem ents m ust all be re ­
lated to the sam e su b ject; if you
are w ritin g a p aragraph , the sen­
tences in th a t p arag rap h should all
be related to the sam e subject.
U nity of th o u g h t requires a reaso n ­
able relationship betw een the ideas
you are presenting.
T h ere is an o th er type of unity,
called “un ity of key,” w hich requires
you to decide the tone you will
adopt and stick to it. You sh o u ld n ’t
suddenly change from a lofty, noble
tone to a slangy, colloquial one. You
confuse the reader by such a change
and m ake him feel th a t you do not
take w h at you are doing se rio u s ly ;
th a t you are not in earnest.
In all w ritin g , th ere should be a
definite relation betw een the p ro ­
portions of the different p arts of
your com position. T h ere are th ree
m ain p arts to a le tte r; th e in tro ­
duction of the idea, its developm ent
and the sum m ary, If you over-bal­
ance th e introduction, yo u r develop­
m ent and sum m arization suffer and
you w eaken your results. Y et, this
is a com m on error. W e are all
tem pted to p u t and keep o ur best
foot forem ost and jam all our goods
in the show w indow . T h ere m ust
be the sam e vigor in yo u r develop­
m ent and in your close and you are
exceptional if you can do th is u n ­
consciously. Seasoned play w riters
are forever w atch in g for a let down
in the action of th eir plays tow ard
the last act— sad to say it is too
often th ere ! T his p rop o rtio n in g is
called the rule of m ass.
R epetition is not only justifiable,
b u t actually necessary. By m aking
thousands of tests, the psychologists
have found th a t th e average mind
requires tw enty-one recognitions of
an idea before it is fixed and ac­
cepted. T hink w h at th a t m eans to
you if you have an idea you w ish to
im press in your letter. D o n ’t m is­
un d erstan d it. T w enty -o n e rep eti­
tions will not do the trick —-recogni­
tions w as the w ord. I t m ay run
m ore or less in the case of any one
person, b u t th a t is the average.
W h ere you find th a t a few present
tatio n s does th e w ork, it is because
som e one else has done p a rt of the
p rep arato ry w ork for you. Sales-

Jan u a ry , 1923

TH E N O R T H W E S T E R N

m en are som etim es surprised a t the
ease w ith w hich they m ake a sale.
P ro b ab ly th e salesm an ahead of him
actu ally m ade the sale and all this
one does is to close it. R epetition
then, is necessary, b u t it should be
a rep etitio n of the idea and not the
sentence.
E m phasis
in
com position
is
secured in tw o w a y s ; m echanically
and intellectually. T he use of capi­
tals, italics or underscoring-, or set­
ting- off betw een dashes or p aren ­
theses gives you m echanical em ­
phasis, and the use of pow erful ad ­
jectives, adverbs or stro n g th o u g h t
clim axes will give the intellectual
result. J u s t as you recognize the
exclam ation point or the underscored
w ord as th e sym bol of em phasis, so
does th e m ind recognize certain
w ords, such as “never, param ount,
ab so lu tely ” and others as em phatic
th o u g h t sym bols.
By com bining
th e tw o you can secure a double
em phasis.
R em em ber, how ever, th a t th ere is
d an g er in over-em phasis and in p u r­
poseless em phasis. All em phasis is
the sam e th in g as no em phasis.
T w e n ty -fo u r p oint type is em phatic
in co n tra st to eighteen point, b u t if
the entire article is set in tw en ty four p o in t— th ere is nothing b u t
m onotony. F req u e n tly you will gain
em phasis by doing the opposite
th in g to w h at everyone else is doing.
If everyone is speaking in w hispers,
you will a ttra c t atten tio n by sh o u t­
ing, and if everyone is shouting, you
will gain atten tio n by w hispering.
L e tte r w ritin g is a continual
source of in tere st and fun if you go
a t it in the q u estin g spirit. A s a
by-product, you will discover an in­
creased incom e.
T h e first b ath tu b w as b u ilt in
C incinnati, and installed in a hom e
in th a t city, so recently as 1842—
ju s t 80 y ears ago. T h a t b ath tu b
w as m ade of m ahogany, lined w ith
sheet lead, and its far-seeing ow ner
p ro udly exhibited it at a C hristm as
party . T h e next day th e C incinnati
new spapers denounced it as a lu x ­
urious and undem ocratic vanity.
T h en the m edical m en solem nly pro­
nounced it a m enace to health. In
1843 P h ilad elp hia undertook to p ro ­
hibit, by public ordinance, b ath in g
'betw een N ovem ber 1 and M arch
15. B oston, in 1845, m ade b ath in g
unlaw ful, except w h en prescribed
by a physician. V irg in ia w as so
w ro u g h t up th a t she taxed b a th ­
tu b s $30 a year.
In this world a man m ust be either
a h am m er or an anvil.— Longfellow .

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Federal Reserve Bank of St. Louis

55

BANKER

The World’s Safest
Bank Checks
because
They are made of the world’s best
safety paper

because
They are insured in the Hartford
Accident & Indemnity Co. for SH­
OCK).00 against loss through fraudu­
lent or felonious alterations

because
They are protected by the service of
the William J. Burns International
Detective Agency, Inc.
Give your depositors this sure pro­
tection. Write us for further in­
formation.

The Bankers Supply Company
The Largest Manufacturers of Bank Checks in the World

NEW YORK
ATLANTA

CHICAGO
DES MOINES

DENVER
SAN FRANCISCO

56

TH E N O R T H W E S T E R N

BANKER

Jan u a ry , 1923

For Bankers and Their Wants
T h i s d e p a rtm e n t of T H E N O R T H W E S T E R N B A N K E R Is
to a ssis t S U B S C R I B E R ' S in obtain ing goods or se rv ic e hard
to find.
It is free.
Use it. A S K U S , as we can tell you
w h e re to buy an y th in g you need in y o u r b a n k or f o r y o u r
bank. T E L L U S , a s y o u r " w a n t " w ill be p u bli shed un d er
the abo ve heading fre e of charge.
In answ eri n g classified
a d v e rtis e m e n ts w h ic h have ke y n u m b e rs please enclose a
two-cent sta mp . T h i s is used to f o rw a rd y o u r letter.

W anted second hand bank fixtures
suitable for ofiice partition. Can u se 30
feet, including 3 doors and one w icket.
A lso 23 feet, including one door and one
w icket. A ddress Box 81, Traer, Iowa.

in banking, insurance
farm loans. T w enty yea rs’ experience
in banking, 13 years in one bank. B est of
references. Address No. 2625, The N orth­
w estern Banker.— 1.

Position w anted in bank by young man
twenty-one years of age. A graduate of
high school, two years in -c o lle g e , and
business college education. Can operate
typew riter and take dictation in short­
hand. B est of references as to character.
A ddress No. 2623, T he N orthw estern
Banker.— 1.

Po sit io n w an te d as a ssista n t cashier in
bank. Tw enty-eight years of age, single.
Six y ea rs’ experience in country banks.
Can furnish excellen t references. A d ­
dress
No. 2626, The
N orthw estern
Banker.— 1.

Position w anted as cashier in good
live bank, by married man, age 45, and
w ith 25 years’ banking experience, real
estate, loans and insurance. Can furnish
best of references as to character and
ability. Address No. 2624, The N orth­
w estern Banker.-—1.
Position w anted as assista n t cashier
or teller, by young married man. A ge
twenty-four. Two yea rs’ experience as
assistan t cashier. Two years as m anager
of lumber yard. B est of referen ces fur­
nished as to character, ability and hon­
esty. Address No. 2627, The N orthw es­
tern Banker.— 1.

P o sit io n wan ted

or

Po sitio n w an te d by young man twentyeigh t years of age as a ssista n t cashier
or teller. E ight years’ experience. Can
invest. B est o f references. Address No.
2628, T he N orthw estern Banker.— 1.

W anted by am bitious, experienced
young m arried banker, a position as
cashier or assista n t cashier in a good
M innesota bank. N ow employed. Good
reason for change. Scandinavian. Can
give b est of references as to character
and ability.
Correspondence invited.
Address No. 2629, The N orthw estern
Banker.— 1 & 2.

No labor is hopeless.—Roux.

Guides to Success
Good health, a w illingness to
w ork, high ideals, a know ledge of
hum an nature, and th e developm ent
of all good qualities are th e p rin ­
ciples th a t co n stitu te success.
H a rd w ork and conscientious ap ­
plication to duty, to g eth er w ith the
ability to m eet and m aster situ a­
tions, are all factors of success.-—
George M. R eynolds.
T h e lesson we m u st learn is the
value of m oney and th e value of sav­
ing m oney. E conom y m akes strong,
industrious, successful m en. I can­
n o t sta te this too em phatically.—
Jefferson D avis.
W hen to the intelligence of so u th ­
ern m en w e have added th e w hole­
sale in stin ct of saving m oney, no
race will, equal us.— R ob ert E. Lee.

SPECIALIZING
BANK EQUIPMENT

AMERICAN FIXTURE CO.
KANSAS C ITY; MO.

From a Bank Pin to a Vault Door
Can be furnished from our stock of B ank and Office Supplies. O u r line com prises
com plete stocks of B ank and Com m ercial S tatio n ery Supplies,
D esks, C hairs, F iling D evices in W ood and Steel, Safety D eposit
Boxes, V a u lt D oors, B u rg lar and F ireproof Safes.
SPE C IA L A T T E N T IO N G IV E N TO M A IL O RDERS.

McNamara Office Supply Co. Ä Ä I T !
R ea d ers w ill co n fer a f a v o r b v m en tio n 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 e rtise rs.


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Federal Reserve Bank of St. Louis

TH E N O R T H W E S T E R N

Jan u a ry , 1923

57

BANKER

G et th e R ight S tart—
M ake 1923 a Big Year
B usiness has a ru n n in g s ta rt for 1923— no tim e will be lost in developing
m om entum . A th in g once in m otion gains speed rapidly and easily. In ­
ertia held us back last year— it will drive us ahead in 1923. B ank clearings
are increasing steadily— scores of firms show a profit now, against a loss a
year ago— th e business outlook is m ore b rig h t and certain.

Put Service First
Service is largely a m a tte r of available facilities. W hen
you have the necessary equipm ent and supplies to w ork
efficiently, your service will m eet w ith approval. Z aiser’s
supply “ ev erything for the bank and office,” from pins
to fu rn itu re and safe deposit boxes. H av e the things
you need—give service—grow in 1923.

No. 1649

T his plain oak tra y w ith hinged cov­
er is used for filing canceled checks,
notes, d ra fts—am ple for sm aller
banks and tru s t com panies. H as re­
m ovable rod— ru b b er feet. See ca t­
alog, page 344.

In J a n u a ry —
N ew form s for the year are needed— old
records m ust be filed. This sectional post
binder is only one of many sty les and
sizes— also solid post binders. Wood
and cardboard file and transfer cases,
clearance and exp ense account books,
daily cash statem en ts, draft registers,
pass books, and loose leaf form s.

Keep Plenty of
Supplies on Hand
Be sure you have sufficient ledger sheets,
indexes, coin trays, finger m oisteners,
rubber stam ps, paper clips, deposit slips,
pen and ink.
R eplace wornout equip­
m ent such as check protectors, desk trays
and sets, chair pads, strong boxes, check
sorters, pad racks, postal scales, cuspi­
dors, note cases and pencil sharpeners.
Keep your service 100% all the tim e.

Order from Catalogs

F rom O u r Office
F u rn itu re Catalog

Z aiser Catalogs place the supply market
at your elbow— save tim e— enable you to
have standard goods at low current prices.
Mail the coupon, then keep the catalogs
on your desk for handy reference-

A com plete line office furniture of stand­
ard m akes, in oak, m ahogany and steel, is
show n in our catalog. Mail the coupon
for your copy.
FOR O FFIC ER S

Several grades of flat and roll top desks,
50 inches to 78 inches long, and plain or
upholstered chairs to m atch, are illu s­
trated and described. D irectors’ tables
in mahogany.
FOR S T E N O G R A P H E R S

We
recom m end
com fortable
sw ivel
chairs w ithout arms, or straight-back
chairs. Many grad,es of sin gle and dou­
ble pedestal typew riter desks are shown.
FOR

BOOKKEEPERS

W e display several types of standing
desks, tables, low and high stools, with
or w ithout backs. D etailed descriptions
and exact illustration s are given in our
Furniture Catalog— mail the coupon.

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

6^^414-416 SeventhSt^ - ^

V U L - C O T * Y iM is
GUARANTEED 5 Y E A R S
T hese baskets w ill not dent, break,
rust or corrode—are practically non-in­
flammable. N othing can fall out. F in ­
ished in dull maroon, brown or green—
three sizes, 10, 12 and 14-inch top.
W IR E

AND

STEEL

BASKETS

For w aste or ticker tape.
Round or
square shapes, all s i z e s . S teel baskets
finished in copper, bronze, green, ma­
hogany, walnut, brass, oak and w hite.
See General Catalog pages 276 and 277.

Des M oines, la.
□
□
□
□
□

P lease send us—
General Catalog.
Furniture Catalog.
Self-Indexing Ledger Booklet.
Safe-Cahinet Circular.
V ault Interior Circular.

N a m e ..................................................
A ddress....................................................

58

TH E N O R T H W E S T E R N

PARLEY SHELDON, Honorary Vice Pres.
C. M. SPENCER, Vice Pres, and Secretary

BANKER

F. L. MINER, President
C. S. VANCE, Vice Pres, and Underwriting Mgr.
FRANK P. FLYNN, Treasuer

POLICY HOLDERS
W ill Patronize an IOWA Company
Guaranteed by IOWA Capital
Managed by IOWA Men
IO W A B A N K E R S R e c o g n iz e th e A d v a n ta g e o f P r o te c tin g IO W A
C R E D IT w ith IO W A IN S U R A N C E
Reliable Agents Wanted in Every City in Iowa.

Write

Iowa National Fire Insurance Co.
D E S M O IN E S, IO W A

Jan u ary , 1923

Hold School of Instruction
T he annual d istrict agency con­
ference and school of instru ctio n for
the W aterlo o D istrict w as held by
W e ste rn Life of Iow a, D ecem ber
14th.
T he W aterlo o D istrict com prises
8 counties in n o rth east Iow a in
charge of F. O. Gregg.
T he conference w as atten d ed by
31 producing agents from th a t local­
ity and several hom e office officers
from D es M oines.
N ew A gent at Fonda
T he W estern Life of Iow a an­
nounces the appointm en t of Sam Y.
B aldw in, as d istrict supervisor for
territo ry w est of F o rt D odge w ith
headquarters at Fonda.
Mr. B aldw in has been a leading
producer for the M utual Life of New
Y ork for th e p ast seven years and is
well and favorably know n in th a t
vicinity.
Mr. B aldw in w as one of the lead­
ers of W e ste rn Life pro duction for
the m onth of D ecem ber.
W om an’s Financial Responsibility
U nder the w o m an ’s equal rig h ts
law of W isconsin, th e Suprem e
C ourt of th a t state holds financial
liability for her acts to be the sam e
as a m an ’s. T h e decision cam e in a
case in w h ch a woman who owned
p ro p erty had indorsed her h u sb an d ’s
note.
In m ost states a husband is re ­
sponsible for his w ife’s debts, b u t a
wife is not responsible for her h u s­
band’s debts. W ith equality of re­
sponsibility either both w ould be
responsible for the others financial
obligations, or neith er w ould be. In
the la tte r event, an exchange sapiently rem arks, a blank et equality
law is not so m uch p u ttin g w om en
on an equality w ith men, as of p u t­
tin g men on an equality w ith w om en
by relieving them from financial
liability for the debts of th eir wives.
In either event, m erchants doing
business w ith w om en should keep
an eye on new equal rig h ts law s.—
Chicago Jo u rn al of Com merce.
T he building of a g re at m erchant
m arine is as tru ly a national obliga­
tion to the people as F ederal assist­
ance for highw ays in th e W est.
B ut the farm ers of W est, w ho w el­
come highw ay construction, rebel
against G overnm ent assistance for
m erchant vessels. T h a t is sh o rt­
sightedness.— Chicago Jo u rn al of
Com merce.
Great men are never sufficiently
shown but in struggles.— Burke.


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Federal Reserve Bank of St. Louis

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

59

IN S U R A N C E S E C T IO N
Tucker Announces Merger
A. C. Tucker, president of the State
Life Insurance Company of Iowa, has
announced the absorption by that com­
pany of the M utual Life Insurance
Company of Red Oak, Iowa.
Through this transaction the State
Life will add over $1,800,000 of
busin ess— to th a t already in force,
m aking the com pany’s business in
excess of $30,000,000. A ssets also
show an increase from $2,100,000
to $2,400,000.
Approval of the merger has already
been granted by Commissioner Savage.
The State L ife has enjoyed a re­
m arkable growth under the direction
of President Tucker who announced
when he took control of the company,
that it was his ambition to see the
State Life one of the largest and
strongest companies in Iowa.
December 31, 1919, the company
had $1,854,450 of insurance in force.
In less than two years it has grown
to over $30,000,000.
Officers and directors of the com­
pany are : President, A. C. T u ck e r;
vice-president and field manager,
W illiam K o ch ; secretary, H. W . H ill;
treasurer, U. G. T u rn e r; assistant
treasu rer, D. C. C ostello; m edical
director, C. W . W h ic h e r; actuary,
W ilb u r M. Jo h n so n ; general coun­
sel, Jo h n Connolly, Jr. D irectors,
D. H . M cKee, D es M oines; J. J.
S ham baugh, Des M o in e s; C. J.
Locker, George, I o w a ; F. E. Shane,
N illisca, Iow a.
Leaves General Accident
R ichard C. B udlong, for the past
y ear su p erin ten d en t of agents of the
In d u strial D ep artm en t of the G en­
eral A ccident a t P hiladelphia, and
p rio r to th at, associate editor of the
N ational U n d erw riter, has again b e­
com e affiliated w ith the N ational
U nderw riter as associate editor. Mr.
Budlong has a wide acquaintance
among insurance men of the west,
augmented by his recent connection
with the General Accident. He is a
son of E. C. Budlong, vice-president
of the Bankers Accident Company of
Des Moines.
Davenport Company Reorganized
The American Fire Reinsurance
C om pany of D avenport, Iow a, has
been reorganized, with A lfred C.
Mueller, mayor of Davenport, as
president, succeeding August Steffen.
M. H . Calderwood, president of the
Aldridge Savings Bank, becomes sec­
retary and treasurer, succeeding Louis

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Federal Reserve Bank of St. Louis

Roddewig as secretary and Otto Hill
as treasurer. Ruel B. Cook continues
as vice-president of the company, with
David E. Spahr as fiscal agent and
general manager. The company is
still in the organization stage and
has an authorized capital stock of
$1,000,000 w ith a proposed surplus
of an equal am ount.
Farmers Increase Capital
The Farm ers Insurance Company of
Cedar Rapids, Iowa, is to increase its
capital to $500,000. This company
has operated in Iowa since 1860. In
1920 it was affiliated w ith the A m eri­
ca F ore group, w hich includes the
American Eagle, the Continental and
the Fidelity-Phoenix Fire Insurance
Companies of New York.
J. F.
Donica, the president was formerly
a field man for the Continental.
H enry Evans, chairman of the board
of the A m erican Eagle, is chairm an
of the Farm ers Insurance Company
of Cedar Rapids.
The company
recently entered New York state for
the first time, and is to enter other
states shortly.
Bankers Life to Hold “Schools”
Officers of the B ankers’ Life of
Des M oines are m aking p reparations
for -an a g e n ts’ school of in stru c­
tion to be held at St. A ugustine,
F lorida, Ja n u a ry 4, 5 and 6." A bout
225 agents w ho have distinguished
them selves in business production
will be the g uests of the com pany.
Officers and m em bers of the staff
and lecturers will b rin g the num ber
of the p a rty up to about 400.
A fter the school, a “gold m edal
club” will be taken on a trip to
H avana.
M em bers of this o r­
ganization, n um bering 100, are
agents w ith an exceptional record
for steady production.
Iowa Fairs Like Rain Insurance
Io w a’s county and d istrict fairs
paid out alm ost tw ice as m uch for
prem ium s for rain insurance during
the 1922 season as they collected
from the insurance com panies, a c ­
cording to the financial rep o rt an ­
nounced by S ecretary A. R. Corey
of the state d ep artm en t of ag ricu l­
ture.
T h irty -six fairs in the state which
carried rain insurance paid out $35,648 in prem ium s and received $17,250 on losses sustained as a result
of th eir attendance being reduced
by rain.
T his is alm ost an exact reversal

What Are You
Worth to
Yourself?
W o u ld you in su re the co n ten ts
o f y o u r v a u lt fo r o n e-fifth o f the
a m o u n t y o u m ig h t lo se an d c o n ­
sid e r it e c o n o m y ?
Or
your
$50,000
b u ild in g
a g a i n s t fire a t $5,000 a n d f e e l
th at you w ere sa v in g m oney?
O r y o u r $3,500 c a r f o r $500?
T h en h o w ab out y o u rself and
t h a t m o s t v a l u a b l e a s s e t — your
tim e f
W e do n o t h a v e to p a y y o u ten
or fifteen d o lla r s e v e r y tim e y o u
c u t a fin g e r or h a v e a co ld to
prove th e v a lu e of good d isa b ility
in su ra n ce.
Good in su ra n ce
costs
m oney.
R ea l in su ra n ce a g a in s t sick n ess,
r e g a r d le s s o f h o u s e con fin em en t,
w o u ld c o s t le s s if s e n s ib le p eo p le
w o u ld in su re fo r la r g er am ou n ts.
F ir s t, e n o u g h to c o v e r th e e x ­
p en se o f a sh o r t illn ess, in c lu d in g
su r g ic a l op eration s, d o u b lin g th e
am ou nt after tw o w eek s, d oub ­
lin g a g a in a fter fou r w eek s, and
a g a in a fter th ree m o n th s, so th a t
in c a s e o f a r e a l p h y s i c a l b r e a k ­
dow n, th ere w ill be gu a ra n teed a
d efin ite in co m e .
I f t h is p r o p o s itio n a p p e a ls to
y o u r go o d com m on sense, w rite
y o u r n am e, age, o cc u p a tio n , and
a d d r ess on th e m a r g in of th is a d ­
v e r tis e m e n t, m a il it to us, a n d a
p r o p o s itio n w ill b e s u b m it t e d to
y o u in w r i t i n g .
N e a r ly T h ir t y Y e a r s in B u s i­
n ess. L a r g e st D isa b ility P rem iu m
I n c o m e in I o w a .

BANKERS
ACCI DENT
INSURANCE CO.
D E S M O IN E S
F. L. Miner, Pres., E. C. Budlong, V. P.
J. A. Klzer, Sec’y
“ You can bank on the Bankers”

We have an agency proposition for banks
that will interest you.

TH E N O R T H W E S T E R N

60

Li k e
A Ch i e f

its

BANKER

of conditions existing in 1921, the
figures show, w hen insurance com ­
panies w ere forced to pay to fairs
alm ost double the am ount they re­
ceived from prem ium s.
W h e th e r rain insurance will con­
tinue to be popular w ith th e fairs
of the state will be one of the n u m er­
ous questions to be decided a t the
annual m eeting of the Iow a F air
M anagers A ssociation to be held
in D ecem ber a t D es M oines.

S tate

Among

Jan u ary , 1923

Eq u a l s

S E R V IC E

Gets N ew A ppo in tm en t
M. M. D em ing of D es M oines has
been appointed sta te ag en t for Iow a
for the A m erican C entral Life of
Indianapolis and will s ta rt im m e­
diately to organize a stro n g field
force in the state. H e w as form erly
Iow a m anager for the M ontana Life.

^ T T ffiS word means more than any other
i f L in business. Service is business—
or business is service— nothing else.
Yet, mistreated and manhandled, its real
meaning has almost been lost.
State Life service, however, is real service
—with a capital “ S” . Never have State
Life men had cause to complain that State
Life service was other than it should have
been.
Consequently, State Life and State Life
agencies have grown; and rapidly, too. If
you are seeking a connection, one where
your individual efforts to expand will find
materialization, then write today for our
bank agency and “ grow with a growing com­
pany.”

M. M. DEMING.

and prior to that, w as vice-president
and agency director for the W estern
Life of D es M oines.
•Mr. D em ing is an experienced
agency -man and is know n nationally
th ro u g h his m any years of active
connection w ith the N o rth w est
C ongress of Life U n d erw riters. H e
has been active, also, in connection
w ith the Des M oines A ssociation
of Life U n d erw riters, of w hich o r­
ganization he served for som e tim e
as secretary. H e will continue to
have offices in the Old Colony
building, Des M oines.

□


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Federal Reserve Bank of St. Louis

□

Recipe U nknow n
P rohib. A g e n t: “ Is th ere any li­
quor being m anufactu red illicitly
around h ere?”
Old N a tiv e:
“ I dunno exactly
how it’s bein’ m anufactured, b u t it
sure is.”— A m erican L egion W eekly.

Jan u a ry , 1923

44

TH E N O R T H W E S T E R N

BANKER

Cooperation”
in fact—as well as spirit
Ohousands, when they hear the
name “The Company of Coopera­
tion,” associate it with this company.
Naturally enough, too—because the
Des Moines Life & Annuity has
consistently lived up to the spirit of
the name in their relations with
policyholders and agents.
If you desire a connection where co­
operation of the most efficient kind
exists in fact as well as in spirit, write

The Des Moines

A . L. H A R T , President

Life- Annuity
Company
The Company

of

Co - o pera tio n ’

Des Moines Life
and A n n u i t y C o m p an y
Des Moines, Iowa


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Federal Reserve Bank of St. Louis

61

62

THE

N O R T H W E S T E R N

BANKER

We Believe in Our Representatives
They Believe in Us
&
A faith w hich began w ith the conception of this
com pany has continued to grow w ith agent and
com pany alike.
W e do not believe th a t there is b etter faith.
R eal service to the insured— real co-operation on
the p a rt of the com pany, and real rep resen tatio n on
the p a rt of the ag en t has m ade the R oyal U nion
M utual Life In su ran ce C om pany w h at it is today.
W e w ant m ore good banker agents.

ROYAL UNION MUTUAL LIFE
i INSURANCEi
! COMPANY.! ' IN A L L
DES MOINES, IOWA
S I D N E Y A. F O S T E R ,
S e cre tar y .
F R A N K D. J A C K S O N
Pres iden t.

THAT
IS GOOD
IOWA
AFFORDS
THE BEST

J

*

$1000 Cash as Interest
T his is the m ost im p o rtan t feature of our
fam ous $4,000 T h rift Policy— a policy especi­
ally designed for young m en and young w om en
striv in g to accum ulate th eir first $1,000, cash.
T h is policy ofifers an easy m ethod of saving and a safe plan of in­
vestm ent. It is ju st one of the m ore th an fifty a ttra ctiv e policies
offered by this Com pany.
W e will be glad to give you fu rth e r p articulars.

Missouri State Life Insurance Co.
H om e Office
St. Louis

M. E. S ingleton
P resid en t
L IF E

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Federal Reserve Bank of St. Louis

A C C ID E N T

HEALTH

GROUP

Jan u ary , 192.:

L incoln N ational Sectional M eetings
T h e Lincoln N ational Life In ­
surance C om pany of F o rt W ayne,
Indiana, has announced the sched­
ule of its 1923 sectional m eeting,
w hich will s ta rt on Jan u a ry 9. T h e
first m eeting will be held a t Cleve­
land, Ohio, Jan u a ry 9, 10 and 11, the
second at Chicago, Jan u a ry 16, 17
and 18, and the th ird a t F o rt W ayne,
Indiana, at the hom e office, Jan u ary
23, 24 and 25. It is planned to hold
m eetings d u rin g the m onth of
F eb ru a ry a t Des M oines, Io w a ; San
A ntonio, T e x a s; Los A ngeles, C ali­
fo rn ia; S eattle, W a sh in g to n ; P o rt­
land, O reg o n ; B utte, M ontana, and
M inneapolis, M innesota.
T h e m eeting will be open to all
m em bers of the com pany’s w ritin g
clubs, w ho have gained club stan d ­
ing d u rin g 1922, and to all other
rep resen tativ es of the com pany. T h e
first day of the program is to be
given over entirely to agents, and
those w ho are to preside over the
various subjects on th e first day of
the m eetings in Cleveland, Chicago
and F o rt W ay n e have been notified.
Reward “O ne-a-W eek” Men
T he w eek before C hristm as the
W e ste rn Life of Iow a d istrib u ted
to 29 Iow a A gencies “ O ne-A -W eek
C lass” cash prizes for the last half
of the y ear 1922.
The W estern Life “One-a-W eek
C lass” provides a su b stan tial cash
prize to be paid at the close of each
calendar six m onths for th e ag en t
who produces business each week
durin g the six m onths. T h e busi­
ness m ust be filed at the hom e office
before F rid ay noon of each week
and a t the close of the m onth a b u t­
ton is issued to the agent, w hich en­
titles him to $5.00 in cash for each
butto n he receives.
T h e prizes w ere d istrib u ted the
week before C hristm as, g iving th e
ag en t the benefit of only th ree w eeks
in the m onth of D ecem ber. T h e in ­
tere st taken in the plan d u rin g 1922
has lead the com pany to continue
the sam e plan during 1923 w ith some
additions and changes.
A dm itted to A m erican Life
T h e M idw est Life In su ran ce Com ­
pany of Lincoln, N ebraska, has been
adm itted to m em bership in the
A m erican Life C onvention, m aking
a total of 146 com panies.
T oll of the F ire F iend
O ver 15,000 are killed and 50,000
are seriously injured an n u ally in the
U nited S tates, as a re su lt of fire
alone.

January, 1923

THE NORTHW ESTERN

SE R V IC E ID E A IS SU R E TO
GROW R A P ID L Y
(Continued from page 24)
spection or otherwise, prevention is
better than indemnity.
N othing was more evident at the
recent convention of the insurance
com missioners than their determina­
tion that the insurance business be
run according to H oyle and that the
commissioners them selves have a
prominent part in interpreting
H oyle. Their idea is that the in­
surance business exists for the good
of the public, not to prey upon the
public in any way that they can pre­
vent. T hey believe that legitimate
and ably conducted companies can
live and make fair returns to their
stockholders under these conditions.
This tendency toward state control
is a grow ing one.
To a broader expansion of insur­
ance, the opening of new fields and
a better m eeting of the requirements
of the individual even though he
wants som ething out of the ordi­
nary.
W e may look for further exten­
sion of the multiple line system and
in time the breaking down of the
present legal barriers so that com­
panies with sufficient resources can
write all forms of insurance, with
the exception of life.
W e may also look for further
concentration of control such as has
occurred in England.
As to standardization there may
be some question. There are sign&
of a reaction against it as brought
about voluntarily by insurance com­
panies through their own organiza­
tion. W ith statute or departmental
ruling governing more of the details
of the business, however, the prob­
abilities are in favor of more rather
than less standardization.
I believe the stock companies have
more to fear from mutual and reci­
procal com petition and state insur­
ance than from anything the com­
missioners will do to them even un­
der strong laws.
Except in branches where the
chance of great loss is remote there
will be little room for small com ­
panies in the future. The tendency
is to require more capital and sur­
plus in order to get a license to do
business, and, even without this, the
competition with giants and their
subsidiaries on standardized forms
and at standardized rates will make
the way of the beginner hard and it
must have surplus to carry it
through the early lean years.

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Federal Reserve Bank of St. Louis

63

BANKER

I T h e N e w A d v e n tu re
Each N ew Year offers another adventure along the
highw ay of life. Much of the charm and brightness of
the days ahead w ill come from the handclasp of fellow
travelers.
The spirit of that aid, w hich is Good Cheer itself,
ex ists in the understanding betw een the Hom e Office
and the field men o f The Lincoln N ational Life Insur-.
ance Company.
The brotherhood bonds betw een the men who carry the rate book, who
truly represent the Company in their neighborhood, and their Hom e Office
co-workers who give them all the a ssista n ce possible in every detail of their
effort, is an inspiration to all who are fam iliar with Lincoln Life Service.
This handclasp of genuine co-operation m akes it pay to

d^ NKlIpJiw iTH
THE

L IN C O L N

LIN C 0 LIS))

the(
tj,i

N A T IO N A L

L IF E

IN S U R A N C E

CO.

“ Its N a m e Indicates Its C h a r a c t e r ”
L i n c o ln Life B u ild in g
F O R T W A Y N E , INDIANA
N o w M ore T h a n $225,000,000 of Insur ance in F o rc e

N ot So Big
That we can’t render each Agency
and Policyholder our individual attention.

B ut B ig !E n o u g h
To serve, with the greatest possible
assurance of safety.
Among the many forms of P oli­
cies issued by W estern L ife are
Farmers’ Special
Endowm ent Age 65

Out of 90 Legal
Reserve C o m p a ­
n i e s operating i n
I o w a during 1922,
W e s t e r n L ife wrote
more than 70 companies
wrote in Iowa.

Child’s Savings
Optional E n­
dowment

It now has in force in Iowa, more
than 72 of the 90 have in force in
Iowa.
Our successful progress is an ever increas­
ing asset to us, and to our Agencies.

nsurancoCompany
OE DES MOINES, IOWA

64

THE NO RTH W ESTERN BANKER

®

ki

™

i

m

m

January, 1923

v

EALIZING the necessity of stabilizing the farming
industry, on which we are all dependent, and sens­
ing the needs of dairy herds on the farm, our institution
has already distributed over one thousand dairy cattle to
farmers through our correspondent banks.
R

This bank accepts its share of the responsibility and ap­
preciates the opportunity to assist, as it ever has, the rural
population of this great northwest.
We offer banks and bankers this additional service.

SIOUX FALLS SAVINGS BANK
CATARACT CORNER

SIOUX FALLS, SOUTH DAKOTA

PIONEER BUSINESS BUILDERS SINCE 1886
F. H. Johnson, President
Don B. Johnson, V ice President
C. H. Ross, V ice President
L. D. Manchester, V ice President
C. C. Bratrud, V ice President
K. B. Cressey, Cashier
F. W . Schafer,

Ted H. Johnson, A ssistant Cashier
D. M. Parrick, A ssistant Cashier
L. H. Sohn, A ssistant Cashier
L. N. H ostetler, A ssistant Cashier
E. M. Marston, Auditor
L. B. Halverson, Mgr. Farm Loan Dept.
Dairy Dept.

LARGEST BANK in SOUTH DAKOTA

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Federal Reserve Bank of St. Louis

S outh D

akota

B

anker

SECTION OF THE NORTHW ESTERN BANKER
OFFICIAL PU BLIC A TIO N OF THE SO UTH DAKOTA BANK ERS ASSO CIATION

T W E N T Y -E IG H T H YEAR
Yankton, South Dakota.
To the Bankers of South Dakota.
My dear fe llo w s:
I wish to take this opportunity to
thank you for the support given
your association during the past
year. Many of you have been called
upon to give a great deal of your
time in the interests of the associa­
tion, and you have done so cheer­
fully.
A word to the officers of the
county organizations: Do not allow
your county organization to die out.
Many counties perfected county or­
ganizations during the past year,
and great good will come from said
organizations if you keep them ac­
tive. Get together three or four
times a year. It will do you good
to swap stories with your fellow
banker, as w ell as to listen to his
troubles. I m ight say when you
hear the other fellow tell what has
happened to him, you will feel that

to
at

JA N U A R Y

you have nothing to worry about.
So let me again repeat, keep your
county organizations active.
There is one question that I feel
that we as citizens do not give the
attention we should, and that is, in
the matter of legislation. I believe
that the bankers, not as a class, but
as citizens of this great state, should
watch the laws that are introduced
in the com ing session of the legis­
lature, and if in your opinion they
are not good laws, you should so
inform the members of the Senate
and House.
One fault with so many bankers is
that they are afraid if they say any­
thing pertaining to a political ques­
tion, it will only be a “knock.”
Now, my dear fellow banker, it was
demonstrated in the last general
election held in this state that the
banker need not be afraid to speak
out on any question, whether it af­
fects his business or not.

Se r v e C om m erce
H om e and A broad

THE
NATIONAL PARK
OF NEW YORK.
2/4 ‘B roadway
Trust Department
Safe Deposit Vaults
Foreign Exchange Department
Securities Department
Credit Department

Serving Financial Institutions
Since 1856


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Federal Reserve Bank of St. Louis

1923

N U M B E R 425
A ssuring you that the officers of
your association stand ready to
serve you, and w ishing you all a
Happy N ew Year, I am,
Sincerely yours,
David M. Finnegan,
President South Dakota Bankers
Association.
Leaves Banking for Insurance
Gilbert T. Tuve, who has been
assistant cashier of the First N a­
tional Bank of Toronto, South D a­
kota, for the past eight years, has
resigned to accept a position with
the Guaranty Life Insurance Com­
pany of Davenport, Iowa, as gen­
eral agent for South Dakota. At
the present time he will have his of­
fice in Toronto.
Gets N ew Charter
The charter of The First National
Bank of W essington, South Dakota,
has been extended for 99 years.

66

THE NO RTH W ESTERN

Comparison Brings
Appreciation
W hen you are choosing a Sioux Falls corres­
pondent remember this
— no bank can render a wider
service than its facilities per­
mit.
The Sioux Falls National Bank meets the re­
quirements of those desiring “complete banking
service.”
Statement of Condition
at close of business
Sept. 15, 1922

BANKER

January, 1923

Grant County Bankers Organize
A county bankers association,
known as the Grant County, South
Dakota Bankers Association, has
been organized. Officers are : Enoch
Lindquist, president; P. C. Saun­
ders, vice president; Frank Boerger,
secretary-treasurer.
The association will promote co­
operation and com munity spirit as
well as deal with problems that will
benefit the farmer and community.
Akaska Banker Married
J. W . Pleinis, cashier of the
Akaska State Bank of Akaska,
South Dakota, was married recently
to Miss Marie Kalmbach of Akaska.
They will make their home at Akas­
ka,
Mr. Pleinis was assistant
cashier of the above bank for four
years. Upon the resignation of G.
J. Kundert last September Mr.
Pleinis was named cashier to suc­
ceed him.

RESO U R C ES
Loans and D iscounts
Overdrafts
.................................
Stocks and Bonds
. . . .
Federal Reserve Bank Stock
U. S. Bonds and Liberty Bonds
Real Estate, Furn. and Fix. .
Redemption Fund U. S. Treas.
Interest Earned N ot Collected
Equity in Bank Bldg. . . .
Expense and Interest Paid . . .
Cash on Hand and Due from Banks

$2,330,731.56
532.17
172,798.46
6.750.00
92,550.00
114,063.95
3.750.00
63,091.50
125,000.00
43,078.13
397,220.64
$3,349,566.41

L IA B IL IT IE S
Capital S t o c k ........................................$
Surplus and Undivided Profits
. .
C i r c u l a t i o n ..............
75,000.00
Due Federal Reserve Bank . . .
2,853,259.84
D e p o s i t s ...................

150,000.00
133,213.64
138,092.93
$3,349,566.41

The

Sioux Falls National
Bank
SIO U X FALLS, SO U TH DAKOTA
O F F I C E R S

JO H N W . W A D D E N
P r e s id e n t
E U G E N E R E IL E Y , V ice
P r e sid e n t.
THOS.
A.
W ADDEN,
P r e s id e n t an d C ash ier.

V ice

W . H . T. F O S T E R , V ice P r e s i­
d en t.

W . I. TH O M PSO N, V ice
P r e sid e n t.
C. W . THOM PSON, V ice
P r e sid e n t.
L. A. G R A Y , A s st. C ash ier.
O. M. R IC H A R D SO N , A sst.
C a sh ier.

Hanson County Bankers Meet
The Hanson County, South D a­
kota, Bankers A ssociation held their
regular m eeting Tuesday evening,
December 12th, and listened to a
splendid address of J. W . McClinton, vice-president of the First
Trust & Savings Bank, Mitchell,
S. D., on the subject of “W here are
we at?”
Fulton Banker Resigns
W allace I. Johnson, who for the
past three and one-half years has
been the efficient assistant cashier
of the Farmers State Bank, Fulton,
South Dakota, has resigned his po­
sition with that bank to engage in
the mercantile business.
W ill Take Up N ew Position
C. A. Abeel, assistant cashier,
Farmers & Merchants National
Bank, Alcester, S. D., for the past
three years, has been elected to the
office of Register of Deeds, Union
County, S. D., and will take up his
new duties on January 1st.
Sioux Falls National
Total resources and liabilities of
$3,349,566.41, with deposits of $2,853,259.84, are shown by a recent
statem ent of condition of the Sioux
Falls National Bank at Sioux Falls.
South Dakota. John W . W adden,
a former president of the state bank­
ers association, is president of the
bank; Thos. A. Wadden, is vice
president and cashier.
Innocence and bold truth are always
ready for expression.— Congreve.


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Federal Reserve Bank of St. Louis

January, 1923

THE NO RTH W ESTERN

BANKER

67

Dairy Campaign of Sioux Falls Bank
Benefits Entire State
Money is loaned to farmers throughout the state and model dairy farm
is conducted for breeding stock and raising dairy products
H IS bank accepts its share of
“In every community where land
the responsibility and appre­ prices have risen to a high point, it
ciates the opportunity to assist has been found that dairying can be
in putting South Dakota on the continued profitably. This is due to
dairy map.”
the fact that the cow is the most
W ith this idea, the Sioux Palls economical producer of food.
Savings Bank of Sioux Falls, South
“W e operate our plan through
Dakota, is conducting a Dairy D e­
correspondent
banks which cover
partment which has already placed
every
part
of
the
state.
Farmers
more than 800 good grade cows and
are
required
to
make
application
30 pure bred sires, and which is con­
ducting a Model Dairy under the through their bank. Upon approval
name “Sioux Falls H olstein Farm s,” our expert purchases the cattle and
a few miles from the city of Sioux the-borrower is allowed 18 months in
Falls. F. W . Schafer is manager of which to pay for the cows. Onethe Dairy Department of the bank, eighteenth must be paid each month.
“W e also impress upon the farmer
under direction of F. H. Johnson
president, and Don Johnson vice the importance of a pure bred sire
to head his herd as it will not im­
president.
prove
the dairy industry of this state
President Johnson outlines the
reasons behind the extensive cam­ to bring in good cows of other states
paign of his institution as fo llo w s: and breed them to inferior sires.
“The fact that M innesota pro­
‘“W hen grain prices were down, and
the farmer who had pinned his faith duced $150,000,000 worth of dairy
to wheat, faced bankruptcy, the products more than did South D a­
dairy farmer was receiving his cream kota during the year 1921 was a
checks regularly at prices that were startling revelation to us. W e are
highly profitable.
Dairy farming convinced that South Dakota has
provides steady work on the farm equal or greater advantages than
the year around, so that the farmer other states that have become
can hire his help on a yearly basis famous in the production of dairy
and keep his sons and helpers in reg­ products.
ular employment. It stops the drift
“South Dakota produced over
of humanity from farm to town.
125,000,000 bushels of corn during

T

the year 1921, ranking fourth in corn
acreage.
“Also, the soil of South Dakota is
well adapted in the raising of alfalfa,
which is one of the greatest crops
that can be produced. Any farmer,
who is equipped to handle 1dairy
cattle and who has some of the qual­
ifications as a dairyman, can receive
assistance in the purchase of cattle
through our plan. The dairy farmer
is engaged in a permanent business
which produces a steady, monthly
cash income.
“W e hear it said that there will
soon be an over-production of dairy
products, but during 1921 there was
an increased consumption of about
115,000,000 pounds in spite of the
fact that conditions had impaired
purchasing power. There is little if
any danger of overdoing the dairy
business.
“In the United States at present
there are fewer dairy cows per#capita
than there were in 1890 or 1900.
The dairy herd returns a constant
income to the owner and better cows
will increase the profits from dairy­
ing by making more products from
the same amount of feed. Most any
forage crop can be grown here, a
healthful climate, and fertile soils
(Continued on page 72)

Model Dairy Barn and Silos on H olstein Farms, Sioux F alls

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Federal Reserve Bank of St. Louis

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

January, 1923

THE N O R T H W EST E R N

E X E C U T IV E

BANKER

C O U N C IL

69

S o u th D a k o ta B an k ers A sso cia tio n

CHAS. L. NICHOLSON, P resid en t
H. R. WOOD, S ecretary

P r e s id e n t ...................D. M. F in n e g a n , V ic e P r e s. F ir s t N a tl. B a n k , Y a n k to n
V ice P resid en t......... A. Kopperud, P res. S ecu rity B an k & T rust Co., W ebster
S e c r e t a r y .................................................................................L. J. W elch , M itch ell, S. D.
T r e a s u r e r .............................. J. W . S te w a r t, P r e s. F a r m e r s S ta te B a n k , D a lla s

The

F in e r J o h n so n , G roup 1 .....................................C a sh ie r V o lin S ta te B a n k , V o lin
T h o s. A. W a d d en , G roup 2 ............V ice P r e s. L a k e Co. N a t ’l B a n k , M ad ison
J. W . B r y a n t, G roup 3 ........................................................................................................
...................V ice P r e s id e n t C o m m er cia l T r u s t & S a v in g s B a n k , M itc h e ll
E . K. Z a le s k y , G roup 4 ..........................P r e s id e n t F ir s t N a tio n a l B a n k , E lk to n
F . S. B r o w n , G roup 5 ..........................P r e s id e n t S ta te B a n k o f D o la n d , D o la n d
T. E. G a g e, G roup 6 ...................................C a sh ier F a r m e r s S ta te B a n k , G roton
C. D. S m ith , G roup 7 ..........................P r e s id e n t F ir s t N a tio n a l B a n k , L em m on
M. M. B r o w n , G roup 8 ......... P r e s id e n t C o m m er cia l N a tio n a l B a n k , S tu r g is
J. F . S te w a r t, G roup 9 ......................... P r e s id e n t F a r m e r s S ta te B a n k , D a lla s

Inter-State
Surety Co.
Redfield, South Dakota

A surety company owned
and operated by South
Dakota people for the
convenience of its citi­
zens.

D. M. FINNEGAN
P resident

W ill Co-operate W ith Farmers
Great plans for a successful year
in 1923 are being made by the Grant
County Bankers Association, South
Dakota.
The
association
was
formed some time ago to take a defi­
nite part in the betterment of the
agricultural situation in South D a­
kota. It is planned by the organiza­
tion to have the business men and
farmers of the county as guests at
a m eeting in the early part of 1923.
Officers of the Grant County A s­
sociation are : President, Enoch
Lindquist, cashier, State Bank of
T w in Brooks; vice president, P. C.
Saunders, president, Farmers and
Merchants National Bank, Milbank ;
secretary-treasurer, Frank Boerger,
cashier, First National, Milbank.
Is W intering in Florida
Robt. H. McCaughey, president
of the State Bank of M ellette, South
Dakota, is spending a very enjoy­
able winter season in Pasadena.
Mr. McCaughey is one of the v et­
eran bankers in the vicinity of
Mellette.
Takes Position at M ellette
N. D.
MacArthur,
formerly
cashier of the W alworth County
State Bank, has located at M ellette,
South Dakota, with the State Bank
of Mellette.

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Federal Reserve Bank of St. Louis

Has Unique Record
The First National Bank of Miller,
South Dakota, is one of the oldest
institutions of central South Dakota
and has a unique record in that it
has been under the same manage­
ment for the past tw enty-tw o years.
Capital, surplus and undivided prof­
its are $125,000 with deposits of
$750,000.
T his instiution has recognized
the needs of the community and has
been a strong factor in developing
the dairy industry of central South
Dakota.
T w elve years ago an active cam­
paign was inaugurated by this bank
for the furtherance of alfalfa raising
and as a consequence of the early
efforts the territory around Miller
today is made up of large fields
of alfalfa.
H og raising has been
developed along with the increasing
acreage of alfalfa and today Miller
is one of the largest hog shipping
stations in South Dakota.
F. D. Greene is president, A. B.
Cahalan cashier, and C. M. Thom ­
son assistant cashier.
Farmers State, Mina
A new E ly Morris safe and a new
vault door have been installed by
the Farmers State Bank of Mina,
South Dakota. This institution
suffered an attack by bandits last
August.

W e write Fidelity and
Surety
Bonds,
Plate
Glass and Bank Burglary
Insurance and with our
location and familiarity
with local conditions are
in position to render
prompt and efficient serv­
ice.

Paid Up Capital
[ $ 1 3 3 ,7 0 0

Surplus and Reserve
$ 1 2 6 ,9 7 8

You Can Show
your interest in the offi­
cial publication o f your
South Dakota Bankers
Association by sending
us any news item s of in ­
terest.
Your cooperation
be appreciated.

will

Northwestern Banker

THE NO RTH W ESTERN BANKER

70

Because of our knowledge and experience in handling the accounts
of banks and bankers in South Dakota—because of our familiarity
with the problems in this state— because of the personal attention
and the personal service which we render to all of our customers,
w e are in a position to serve you satisfactorily and well.
N. o. M O N SE R U D , P r e s id e n t
TOM CO STELLO, V ic e P r e s id e n t
O. A. H A Y W A R D , V ic e P r e s id e n t
V. H . M A ST E R S, C a sh ier

CA R L G. N EL SO N , A s s t. C a sh ier
E R IC K G. H O L D E N , A s s t. C a sh ier
H O LTON D A V E N P O R T , T r u s t Officer

CAPITAL AND SLKPLUS, $120,000.00

Dakota Truigt & Savings Bank
Sioux Falls

South Dakota

January, 1923

Explains South Dakota
Indebtedness
In the last issue of the North­
western Banker appeared a brief ar­
ticle dealing with the per capita in­
debtedness of various states and
containing the follow ing statem en t:
“ . . . .T h e state debt of Iowa is only
11 cents. Other states have a per
capita state debt as fo llo w s: South
Dakota,
$75.02;
M assachusetts,
$ 3 8 .8 3 ;........... Only two states, N e­
braska and Kansas, have no state
debt.”
M.
Plin Beebe, president of the
Bank of Ipswich, South Dakota, has
a word of explanation regarding
South Dakota state indebtedness. A
part of his letter follows :
“W hile this article is possibly
true on the face of it relative to
South Dakota, w ithout an explana­
tion the average person would take
it for one hundred cents on the dol­
lar. South Dakota indebtedness is
as fo llo w s:
Soldier Bonus Bonds. $6,000,000.00
H ighw ay B ond s......... 6,000,000.00
Land Settlem ent Bonds 700,000.00
Cement B ond s.............
270,000.00
Total ................... $12,970,000.00
“Our population is 636,547, mak­
ing a per capita indebtedness of
$20.37, which is paid by direct taxa­
tion.
“It is true w e have $41,500,000.00
in Rural Credit Bonds. T hese are
represented by first farm mortgage
bonds on the amortization plan and
the bonds and interest on the same
are met by the amortization derived
from the farm loans. The people
of South Dakota w ill never be
called upon to pay the interest or
principal of these bonds by direct
taxation unless the farmers of the
state become bankrupt!”
Midland State, Brookings
The Midland State Bank of
Brookings, South Dokota, which
was opened for business in July,
1922, has had a very commendable
growth. A live Santy Claus and a
special Christmas tree, were used by
the bank during the holiday season.
Every child who called at the bank
was given a sack of candy with the
compliments of the season.
Leaves Banking for Insurance
Gilbert T. Tuve, has resigned as
assistant cashier of the First Na­
tional Bank of Toronto, South D a­
kota, and will become district agent
for the Guaranty Life of Davenport,
Iowa, with ten counties in his ter­
ritory. H e will make his headquar­
ters in Toronto.


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Federal Reserve Bank of St. Louis

71

THE NO RTH W ESTERN BANKER

January, 1923

Vice President S. D. B. A.

sources of considerably more than
one million dollars.
Mr. Kopperud has long been ac­
tive in bankers association affairs.
H e was a group officer when he lived
at Lake Preston as well as an officer
in the county association. H e has
been on the executive council of the
South Dakota Bankers Association
for a number of years, and served as
treasurer of the association in 1916.
He has been an active member of
the important Legislative Commit­
tee for many years having served
twice as com mittee chairman. H is
election as vice president of the state
association at the convention in
Aberdeen last summer is a fitting
tribute to his distinguished service
in the association and for the bank­
ers of South Dakota.
Organize Sioux Falls A. I. B.

A. KOPPERUD
P resident Security Bank and Trust Co., W ebster

R. K O P P E R U D , the vice
president of the South Da­
kota Bankers Association,
was born on a South Dakota farm,
and had his early education in the
country schools. H e later moved to
Milwaukee, W is., graduating from
the public schools and Hoffman
Business Institute.
Returning to
South Dakota he taught in country
schools and attended the Madison
State Normal and the State College
at Brookings.
He began his banking career in
1901, when he became bookkeeper

M

and stenographer for the Merchants
Exchange Bank at Lake Preston, S.
D.
From there he went to the
Farmers State Bank of Starbuck,
Minn., as cashier, and later returned
to the Merchants Exchange Bank at
Lake Preston as cashier. H e ac­
quired an interest in several other
South Dakota banks, and in 1915
w ent to W ebster as active manager
of the Security Bank and Trust
Company, in which he had pur­
chased an interest in 1908. Since he
has been at W ebster, his institution
has shown an increase in total re­

SERVICE

Formation of the Sioux Falls
chapter of the American Institute
of Banking was completed at the
chamber of commerce when 100
officers and em ployes of the various
banks of Sioux Falls met to or­
ganize.
W ith the aid of W . C. Dressier,
cashier of the Stockyards National
Bank of Omaha and also a member
of the national executive council of
the organization the Sioux Falls
chapter organization came into be­
ing with the follow ing officers to
direct its activities: E. M. Marston, Sioux Falls Savings bank,
president; O. M. Richardson, Sioux
Falls National bank, vice president;
Miss H azel Roberts, Commercial
and Savings bank, secretary and
treasurer. The officers and the fol­
low ing compose the board of g o v ­
ernors : V . H. Masters, Dakota
Trust and Savings bank, Oliver
Bray, Security National bank, A. C.
Burkholder,
International
State
bank, Homer Jones, Minnehaha N a­
tional bank, and G. B. Carroll,
Granite City bank of Dell Rapids.

BANKS

The

First N a tio n a l Bank

SPECIAL ATTENTION

First National Bank

O ld est B ank in D avison C o u n ty

GIVEN TO

of Rapid City

First Trust & Savings Bank

C a p ital and S u r p lu s $220,000

The

financial service station
w estern South Dakota


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Federal Reserve Bank of St. Louis

M itchell, South Dakota

of

DEPOSITS GUARANTEED
“The bank that not only pays but shows
interest”

First Mortgage Loans
THE BANK OF

BROOKINGS

72

T H E N O R T H W E ST E R N B A N K E R

D A IR Y CAM PAIG N B E N E F IT S
E N T IR E ST A T E
(Continued from page 67)
make South Dakota an ideal dairy
land.”
The dedication of the model dairy
farm recently attracted farmers and
bankers from all parts of South D a­
kota, and from other states of the
middle west.
All visitors were
guests of the bank and were given
transportation to the farm and enter­
tained with a luncheon at noon and
a genuine barn dance in the evening.
The model dairy barn which is
shown in the picture on this page is
as perfectly equipped as any in the
United States. It has a capacity of
42 cattle, allowing each animal four
square feet of light. The floor is of
kreolite blocks, with stanchions of
steel. There are two silos, each with
a capacity of 200 tons. A hayloft
holds 200 tons of hay. T he ai>r
breathed by the cattle will be
changed every one minute by a ven ­
tilating system. The building is elec­
trically equipped throughout.
Perhaps no bank in the United
States has done more to encourage
the dairy industry, and thus the
prosperity of the farmers in its terri­
tory, than the Sioux Falls Savings
bank with its dairy program. The

bank not only “sells” the farmer on
the advisability of. having good
cattle, but it finances him on terms
that he can meet without difficulty,
and then gives him all possible help
and advice in caring for his cattle
and starting in dairy farming.
Buy Control at Custer
Albert H alley and I. M. H um ­
phrey have purchased the control­
ling interest in the First National
Bank of Custer, South Dakota. T. E.
Roe is cashier of this institution,
having recently succeeded Clifford
Kneeland who resigned.
It is
planned by the new stockholders to
increase the bank’s capital stock to
$40,000 in the near future.
Accepts Position at Vermilion
Morris A. Chaney, son of M. J.
Chaney, president of the Citizens Bank
& Trust Company, of Vermilion,
South Dakota, has accepted a position
with that bank.
N ew Cashier at Corsica
Karl Fromm has been appointed
cashier of the Corsica State Bank,
Corsica, South Dakota. H e was
formerly cashier of the First Na­
tional Bank of Faulkton.

Citizens T ru st and
Savings Bank
Aberdeen

South Dakota

OFFICERS
C. N. HERREID, President
DAVID STRAUSS, Vice President
W. G. BICKELHAUPT, Vice President
D. H. LIGHTNER, Cashier
C. R. CUATT, Assistant Cashier
R. G. HADDEN, Assistant Cashier

Legislative Committee Has
Important Meeting
The legislative committee of the
South Dakota Bankers Association
held an important business meeting at
the Marvin Hughitt Hotel at Huron,
December 18-22. Members present
were: President D. M. Finnegan,
Secretary L. J. Welch, D. H. Lightner, chairman of the committee; Fred
Stiles, Watertown; Andrew Lockhart
of Clear Lake, Tom Wadden of Sioux
Falls, and W. B. Penfold of Belle
Fourche.
The meeting was for the purpose of
discussing bank taxation, which is at
present a vital question among South
Dakota bankers.
Installs N ew Burglar Alarm
The First National Bank, of Rapid
City, South Dakota, has just com­
pleted the installation of a new Mc­
Clintock electric burglar alarm system,
with complete protection for their
vault and also public and silent alarms
against daylight hold-ups.
Is Elected President
B.
M. Hart has been elected pres­
ident of the First National Bank of
Onida, South Dakota. H e succeeds
A. R. McConnell, who resigned.

Obtaining Up-to-Date
Canadian Credit Data
In spite of the situation in foreign
trade, Canada continues to buy
heavily in the United States. With
the coming of the anticipated
business recovery, the volume of
trade will undoubtedly increase.
Increased activity will bring a de­
mand on the part of the bank cus­
tomers for up-to-date Canadian
credit information.
American bankers whose cus­
tomers seek Canadian credit infor­
mation will always find the Cana­
dian credit files of this bank’s New
York Agency completely at their
disposal. They are as complete
and as up to date as the facilities
of our three hundred and seventyfive branches can make them.
A Canadian Bank for Canadian Business

U n ion B an k o f C anada
N ew Y ork A gency, 4 9 W all Street
R esources Over $ 1 5 2 ,0 0 0 ,0 0 0


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Federal Reserve Bank of St. Louis

January, 1923

THE NO RTHW ESTERN

January, 1923

BANKER

73

N EBRA SKA BA N K N EW S
STATE OFFICERS—NEBRASKA BANKERS ASSOCIATION

P r e s id e n t ........................................ D an J. R iley, P resident D aw son B ank, D aw son
Chairm an E x ecu tiv e C ou n cil.............................................................. E. H . G erhart,
P resid en t F ir st N ation al B ank, N ew m an Grove
S e c r e ta r y ............................................................... ............. ..
.W m . B. H u sh es, Omaha
T reasu rer......... C. F . B rinkm an, A sst. V ice P resid en t, U. S. N at. B ank, Om aha
EXECUTIVE COUNCIL

A. E. S to c k e r............
I. R. A l t e r .................
W . F . P a r k e r ......... C. F. B rinkm an
H. G. W ellen siek . . .
Carl W e il..................
H. C. N ic h o lso n . . .
W a lla ce R obertson.
S. J. W e e k e s............
Mark S p an ogle. . . .
D an V. S teph en s. . .
Geo. W . W o o d s .. . .
J. H. D o n n e lly .........
J. B. G ib so n ............
W a lter M. Rodm an
E. H . G erh art.........

Consolidation at Johnstown
The Citizens State Bank and the
Security State Bank of Johnstown.
Nebraska, have been consolidated
under the name of the Citizens State
Bank. Officers of the newly formed
institution are: President, A. G.
H olt; vice president, George D.
C lizb e; vice president, R. A. B aker;
cashier, J. A. H olt. The merged
bank will have a capital of $10,000
and surplus of $7,000.
Omaha A. I. B. Debates
T w o debates already have been
scheduled for the winter season of
the Omaha chapter of the American
Institute of Banking, according to
Harry O. Palmer, attorney and deucational director for the state de­
partment of the institute.
T hese debates will be held Jan­
uary 20 at Chicago and St. Louis.
The Omaha chapter will debate
with six other chapters this season,
Mr. Palmer stated, the opponents
to be the chapters of Denver, Kan­
sas City, St. Louis, D es Moines, D e­
troit and Chicago.
The subject for the Chicago d e­
bate, January 20 is, is “Resolved,
that the United States governm ent
refrain from European political in­
tervention.”
At St. Louis, Omaha will debate
the affirmative against a D etroit
chapter team for the negative on
the question, “Resolved, that the
United States in harmony ^ with
other creditor nations cancel its ex­
ternal war debts.”
Lincoln A. I. B. Organized
A chapter of the American In­
stitute of Banking w as organized
on a temporary basis at a meeting
of fifty junior bank officers and em­
ployes of Lincoln, Nebraska, fol­
low ing a dinner at the Lincolnshire.

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

............C ashier Otoe C ounty N at. Bank, N eb rask a City
................ C a sh ier F ir s t N a tio n a l B a n k , G rand I s la n d
........... V ice P resident C itizens S tate B ank, W ood Lake
A ssista n t V ice P resid en t U. S. N ation al B ank, O m aha
............................................P resid en t H arvard S ta te B ank
.'.V ice P resident N a tio n a l B ank of Com m erce, L incoln
............V ice P resid en t P ack ers N ation al Bank, Om aha
..................................... .P resid en t B eatrice N ation al Bank
............................................ President O’N eill N ation al B ank
. . . . ....................... C ashier Bridgeport B ank, Bridgeport
................a . . . .P resid en t F rem on t S ta te Bank, Frem ont
...................................Cashier Lincoln S tate Bank, Lincoln
................................................ Cashier S tate B an k of O m aha
..........................P resid en t N eb rask a S tate B ank, N orfolk
............................P resid en t Am erican State B ank, K im ball
.............. P resident F ir st N a tio n a l Bank, N ew m an Grove

“ The institute is the greatest uni­
versity in the world, with over 500,000 young men enrolled,” said W .
H. Dressier of Omaha, national or­
ganizer. Mr. Dressier was accom­
panied by the president of the
Omaha branch, J. K. Jones of the
Federal Reserve Bank, Harry O.
Palmer, educational director of the
A. I. B., and other Omaha members.
The Lincoln branch will take up
the study of law and banking stand­
ards, elementary banking methods,
public speaking and various ad­
vanced courses. Class m eetings will
be held weekly. Social activities
are a part of the program.
Temporary officers elected were
as follow s: E. A. Becker, Jr., Conti­
nental State bank, president; B. G.
Clark, National Bank of Commerce,
vice president; Howard Freeman,
First National Bank, secretary and
treasurer.
Board of governors:
Floyd Pope, Central N ation al; Miss
Harriet Russell, Lincoln State; Ar­
thur D ye, Nebraska State; and B.
Day, City National bank.
Colfax County Bankers Meet
A t the annual m eeting of the Col­
fax County Bankers Association,
held at Schuyler, Nebraska, the fol­
low ing officers were elected for the
com ing year: President, D. W . K il­
leen; secretary, R. O. Brownell.
Matters of taxation occupied the
greater part of the program.
Is Elected V ice President
At a recent m eeting of the board
of directors of the Citizens State
Bank of Cedar Rapids, Nebraska,
H. T. Jackson was elected vice
president. S. Peterson resigned
from his position as assistant
cashier.

American State, N ew castle
Geo. I. Parker, president of the
American State Bank of Newcastle,
Nebraska, is now active head of that
bank since the resignation of its
cashier, John Schwabland. Mr.
Schwabland plans to reside in a dif­
ferent part of the country in search
of better health. Other officers of
the American State remain the
same. T hey are: Geo. I. Parker,
president; W . R. Talboy, vice presi­
dent; J. E. Cryan, assistant cashier.
N ew Officers at Hubbard
D. G. Evans, H. H. Adair and
Elmer H. Biermann have sold their
interests in the Hubbard State Bank
of Hubbard, Nebraska, to Earl C.
Heinly, R. F. H olm es and Thomas
J. Brozek. Mr. H einly is now acting
vice president of the Colorado State
Bank of Denver, Colorado, and is
also cashier of the Bank of Bartlett,
Iowa. Mr. H olm es is president of
the Farmers State Bank of Bushnell, Nebraska.
The officers of the Hubbard State
will include: President, Earl C.
H einly; vice president, R. E.
H olm es ; cashier, Thom as J. Brozek;
assistant cashier, W . J. Krenk. The
Hubbard State is capitalized at $10,000 and has a $7,500 surplus.
Buys Bank Block at Fremont
The Commercial National Bank
block at Fourth and Main streets,
Fremont, Nebraska, has been sold
to John Sonin, a Fremont merchant.
The building has been vacant since
the consolidation of the Commer­
cial National, the Farmers and
Merchants National and the First
National Banks of that city, last
spring. T he
consolidated
bank
known as the Union National Bank
now occupies a five story building
at Fifth and Main streets.

74

THE NO RTH W ESTERN

Three Million in State Deopsits
Something over $3,000,000 of cur­
rent funds belonging to the state of
Nebraska is on deposit with 310
banks, making an average of nearly
$10,000 to each of the banks. State
Treasurer D. B. Cropsey has given
out a list of these deposits as they
stood on a recent date.
Approximately 60 per cent of the
state’s money thus deposited was in
18 banks of Lincoln and Omaha,
which hold it as “active accounts”
subject to the state treasurer’s
check at any time. These accounts
bear 2 or 3 per cent interest on daily
balances. The remaining 40 per
cent was scattered among nearly'
300 banks in amounts ranging from
$1,000 to $20,000 each, on which the
banks pay 4 per cent and are per­
mitted to keep the money until it
has to be drawn out to meet the
claims against the state. In prac­
tice many of these “inactive de­
posits,” as they are called, remain in
the banks the year round or for
months at a time without being
drawn upon.
There are seven banks in Lincoln
and eleven in Omaha through which
Treasurer Cropsey pays warrants as
they are presented to him by check­
ing upon the active accounts of
these banks. In Lincoln, four na­

BANKER

tionals and three state banks are on
his list; in Omaha, all of the state’s
active depositories are national
banks.
W hen it conies to the smaller and
more or less permanent deposits,
however, the state banks in the
smaller cities and towns are favored
almost to the exclusion of the na­
tionals. N ot more than a score of
national banks, all told, appear in
Cropsejy’s list outside of Lincoln
and Omaha.
The First National Bank of Lin­
coln, on the date when the list was
made up had more state money on
deposit than any other, its quota be­
ing $241,000. The Omaha National
Bank was second, with $201,000:
the National Bank of Commerce,
Lincoln, had $197,000; the City Na­
tional Bank, Lincoln, $128,000; and
the Central National Bank of
Omaha, $56,000. T hese amounts fluc­
tuate back and forth considerably
from day to day, so that one bank
might have a large amount at a
specified time and be som ewhat low
a few days afterward, and vice
versa.
Banks in the state which had
$10,000 or more deposited with them
w ere:
Ashland, the National Bank, $10,000; Cedar Rapids, S. S. H adley Co.,

January, 1923

Bankers, $10,000; Fairbury, Farm­
ers’ & M erchants’ National, $10,000; Grand Island, Grand Island
National, $12,000; Kimball, Citizens’
State (recently failed), $18,000;
Newman Grove, First National,
$11,000; Ord, Nebraska, State, $15,000; Pender, Farmers’ & M erchants’
State, $12,500; Pawnee City, First
State, $10,000; Plattsm outh, First
National, $10,000; Scottsbluff, First
National, $15,000; Sidney, American
Bank, $20,000; Valparaiso, Oak
Creek V alley Bank, $10,000; York,
City National, $14,000, and Ameri­
can State, $15,000.
Bank Building Remodeled
The building of the Farmers & Mer­
chants Bank of Milligan, Neb., has
been remodeled and new fixtures in­
stalled. Officers of the institution are :
President, Frank W. Sloan; vice pres­
ident, C. Smrha ; cashier, J. J. Klima;
assistant cashier, M. Smrha.
Habit
W e are creatures of habit. W e
succeed or we fail as we acquire
good habits or bad o n e s; and we ac­
quire good habits as easily as bad
ones. That is a fact. M ost people
don’t believe this. Only those who
find it out succeed in life.— Herbert
Spencer.

A N ew Era
Our nation, standing on the threshold of a
new commercial era, calls for the support of
strong and completely equipped financial
organizations.
We offer a broad, constructive serv­
ice—the result of fifty-six years of
successful banking experience.
1866-1922

T he Omaha N ational Bank
Om aha, Nebraska

Capital and Surplus

-

- -

$ 2 ,0 0 0 ,0 0 0

WALTER W. HEAD, President

R ea d ers w ill con fer a fa v o r b y m en tio n 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 e rtise rs.


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Federal Reserve Bank of St. Louis

January, 1923

THE NO RTH W ESTERN

BANKER

75

The Taxation of Banks in
Nebraska
B y C. E. Burnham
President Norfolk National, Norfolk

The various cases brought by the
national banks of Nebraska demand­
ing that bank stock be not discrim­
inated against in the matter of taxa­
tion are expected to be argued in the
federal court for the district of Ne­
braska soon after the holidays.
In these cases the banks contend that
the exclusion of bank stock from the
provision of the “Intangible Property
Tax Law,” adopted by the legislature
of 1921, is a discrimination and in vio­
lation of federal statute No. 5219,
which provides that the shares of stock
of national banks shall not be taxed
by state authorities at a greater rate
than is assessed upon other money
capital in the hands of individual citi­
zens. As in the Nebraska case the
tax ratio on “Intangible Property” is
placed at 25% of the tax levy.
The state banks of Nebraska are
also bringing an action against the
taxing authorities of the state asking
that shares of stock in state banks be
declared as “Intangible,” for in the
event of a decision favorable to na­
tional banks being handed down that
there would be a grave injustice to the
state banks were they compelled to
pay 100% ratio and national banks
25%. These cases are being watched
with a great deal of interest by bank­
ers throughout the entire U. S.
U rges Greater Farm Credits
“Conditions in Europe are bad and
I don’t know what the end will be
for the United States. It may be
that w e will again be involved,”
John W . Gamble, vice president of
the First National bank, of Omaha,
Nebraska, declared recently in an
address before the Nebraska Farm­
ers’ Co-operative Grain and Live
Stock association on “Financing
Your B usiness.”
Mr. Gamble said his impressions
while in Europe the first of the year
were anything but good, “as all the
nations over there are recruiting
their armies and preparing for an­
other war. I hope, however, there
will be a suitable adjustment.”
In dealing with the finances of the
farmers of Nebraska, Mr. Gamble
said the establishing of the federal
reserve banking system was one of
the greatest acts in the history of
the United States government.
“T his,” he declared, “has made it
impossible for any set of men to
bring about a panic.”
Relative to deflation, the effects
of which have so seriously hit the

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

The Only Bank in the Union Stock Yards.

A re y o u r e a liz in g - th e f u ll se r v ic e fro m y o u r c o r r e sp o n d e n t to w h ic h y o u
are en titled — som ething in addition to the regular routine of every day b u siness?
W e w e lc o m e th e o p p o r tu n ity to s e r v e y o u in a p e r s o n a l w a y — in f a c t, w e
t r y to g iv e f u ll m e a su r e , an d a l i t t l e m ore.

STOCK YARDS NATIONAL BANK of Sou th Omaha
We are the Clearing House for the Live Stock Business of the
O F F IC E R S
Ford E. Hovey, President
F. J . Enerson, Vice President
H.
Jas. B. Owen, Vice President
W . L. Pier, Vice President
O.
J. S. King, Vice President
W . H. Dressier, Cashier
T.

Omaha Stock Yards.
C. Miller, Assistant Cashier
L . Owen, Assistant Cashier
G. Boggs, Auditor

Packers National Bank
U n io n S to ck Y ards

OM AHA
31 Years of Successful Banking
J ohn F. C oad, President
W illia m J. Coad, Vice-President
H. C. N icholson , Vice-Pres. and Cashier
A. L. Coad, A ssistan t Cashier
A mos G ates , A ssistan t Cashier
I. L. A dams , A ssistan t Cashier
H. E. R ain ey , Auditor

THE

U N IT E D STA TES
N A T IO N A L B A N K
THE

U N IT E D STA TES
TR U ST COM PANY
OMAHA

THE NORTHW ESTERN

76

BANKER

:ili1l[llllllllllllfl(lllllllfllllflllllllllllllfItillfllllimiltllflllllllllllffllllllllllllllllttl UlflllllllKIIIHKIf!11LÜL'

A Bank’s Surplus
Bank executives naturally desire to keep all
surplus at work with a certain proportion in
liquid securities. A well diversified list of
market bonds meets this requirement, and
makes possible greater earnings for the bank.

Our Bank Investment Department is at your
Service. A sk for our list.

PdersTrastCompany
PetersNationalBank
OMAHA

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COMPANY OF ILLINOIS

C a p ita l a n d S u rp lu s


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

.

$ 7 ,0 0 0 ,0 0 0 .0 0
.

.

.

'

Liabilities
Capital ...........................$
100.00.00
Surplus and profits....
21,294.90
Deposits .......................
1,244,442.95
Guaranty fund ............
5,210.35
Borrowed money .... .
Total .....................$ 1,370,948.20
Since its organization in Novem­
ber, 1913, this bank has showed a
steady growth in deposits as evidenced
by the figures:
December 1914 ...............$ 234,624.54
December 1916 ..............
462,007.06
December 1918 .............. 497,580.44
December 1920 ..............
946,462.40
December 1922 .............. 1,244,442.95
Is Elected Cashier
Arthur L. Larson, clerk and book­
keeper of the Farmers State Bank,
Wolbach, Nebraska, has purchased an
interest and has been elected cashier
of the Farmers State Bank, of Adams.

C H I C A G O

D ep o sits O v e r

agricultural interests, Mr. Gamble
insisted no political party was re­
sponsible. “However, the farmers
have been hard hit for the last three
years, and now every one is talking
about how som ething can be done
for the agricultural interests,” he
added.
The chief benefit which could
come to the farmers, he stated,
would be to establish easier credits.
He said it was possible to do this
through the Federal Reserve banks,
the W ar Finance corporation, or
special legislation. “This is a time
when the farmers should be able to
get their money direct from the
governm ent, thus enabling them
to get a lower rate of interest,” he
said.
Nebraska State, Norfolk
The Nebraska State Bank of Nor­
folk has, for the year past, maintained
the title of being the “largest state
bank in northern Nebraska.” The last
statement, that of December 15, 1922
showed totals as follows
Assets
Loans .................. ........ $
855,674.11
Overdrafts ........... .........
1,316.75
Real estate, furniture
and fixtures ..............
21,500.00
Bonds and securities....
112,075.73
Cash and due from
banks .........................
380,381.61
Tot.al ...... ........... ..$ 1,370,948.20

ïàrnam at/êvenfeenth

It(ill

January, 1923

-

7 0 ,0 0 0 ,0 0 0 .0 0

Resigns at McGrew
Miss Roma Harshman. who has
been actively in charge of the Security
State Bank, of McGrew, Nebraska,
as cashier, has been succeeded by Rob­
ert Westerhoff, of Mitchell.
She
plans to retire temporarily from the
banking business.

January, 1923

THE N O RTH W ESTERN

Thurston County Bankers Meet
The Thurston county bankers or­
ganization met recently at Pender,
Nebraska. E. A. Wiltse presided and
W. F. Wenke was secretary. About
thirty representatives of the Thurston
county banks were present. It was
decided to hold the next annual con­
vention in September at Macy. A res­
olution was passed regarding the fail­
ure of the B. & M. Railway to furnish
cars for shippers. The new officers
elected were :
President, J. B. Rossiter, of W in­
nebago; secretary, Leo Ronk, of W in­
nebago.
Is Elected Vice President
At a meeting of the board of direc­
tors of the Dannebrog State Bank, of
Dannebrog, Nebraska, T. Hermansen,
of Omaha, was elected vice president
and also a member of the board of di­
rectors in place of C. O. Schlytern,
whose stock he has purchased. Mr.
Schlytern has retired from the bank­
ing business and will devote his time
to other interests. F. A. Guggenmos,
who was formerly connected with, the
Dannebrog State Bank, has also sev­
ered his connections entirely with the
bank and is now filling a responsible
position with the Omaha National
Bank.
The new vice president, Mr. Her­
mansen, is well known to the people of
Howard county, having lived in that
county 23 years, from 1881 to 1904.
Of late years he has been engaged in
the banking business at Blair and
Benson.
The Dannebrog State Bank is one
of the oldest and most substantial
financial institutions in the county,
having been established by C. C. Han­
sen thirty years ago.

BANKER

American “Cover All” Policy
Protects the Sow and Litter
Until They Reach the M arket
You as a banker can determ ine your custom ers
yearly expenditure for all their veterinary serv­
ice, including worming, vaccination and m edi­
cine, besid es guaranteeing him payI'wMievn..
m ent for every hog that dies.
CREATE
TW O
MARKETS
FOR
Y O U R HOG CROP.
The live market

w ill pay a profit. If sold on a dead
m arket through an AMERICAN Pol­
icy, they cannot show a loss.
Vaccination protects against cholera,
an AMERICAN POLICY protects against
everything. B esides the protection it af­
fords the custom ers and the bank, you w ill
find the w riting of hog insurance your m ost profitable
line. No other class of insurance puts the banker in such
close touch w ith h is customers.

FIVE PIGS WEANED TO EVERY SOW
AND SEVEN MONTHS POLICY

From the Sow to the Car Without a Loss
Write us now about cov­
ering the next spring crop
Our district agent will be glad to
explain this coverage to you with­
out obligation.

American Live Stock Insurance Company
HOME OFFICE

OMAHA, NEBRASKA

N ew Directors at Barada
The State Bank of Barada, N e­
braska, has made changes in the per­
sonnel of its board of directors. Con­
gressman-elect J. H. Morehead has
disposed of his stock holdings in the
bank to County Commissioner Gus
Duerfeldt, who also has purchased the
stock formerly owned by Lud Morehead. Thos. Ahern, another stock­
holder, was also chosen to a place on
the board to fill the vacancy caused by
the death of L. Morehead. The other
members of the board are Emery and
Lee Bolejack and Dan Kelly. Mr.
Duerfelt’s term as a member of the
county board of commissioners will
expire shortly after the first of the
year.
Integrity without knowledge
weak and useless.—Johnson.

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Federal Reserve Bank of St. Louis

is

77

of interest on live stock collections if the Live
Stock National Bank is your Omaha correspondent

Live Stock National Bank
UNION STOCK YARDS

OMAHA

THE NORTHW ESTERN

78

CORN EXCHANGE
NATIONAL BANK
O F C H IC A G O
C a p it a l........................ $ 5,000,000
S urplus and P ro lits •
10,000,000
D e p o s it s ................... 115,000,000

January, 1923

BANKER

The investment
information whichThe National
City Company, through its rep­
resentatives, brings personally
to the attention o f bankers is
information which the Company
has m ost carefu lly gathered,
sifted and analyzed.

CHICAGO, DAVENPORT, IA.
MINNEAPOLIS, ST. PAUL, OMAHA,
ST. LOUIS, KANSAS CITY, KAN.

=TÍllll!!l!llllll!IIIIIIIIIIIIIIIIIIIIINIIIIIIIIflllllllllllilllllllllllllllllllllllllllllinilllllñ

The Chase National Bank
o f th e C ity o f N ew York
57 Broadw ay
CAPITAL ........................................................................................... $ 20,000,000
SURPLUS AND PROFITS.................................................. 21,787,000
DEPOSITS (June 30, 1922)...........................................
434,107,000
OFFICERS

A L B E R T H . W I G G IN
P r e sid e n t
Vice Presidents

OFFICERS
ERNEST A. HAMILL, Chairman of the Board
EDMUND D. HULBERT, President
CHARLES U. HUTCHINSON, Vice President
OWEN T. REEVES, JR., Vice President
J. EDWARD MAASS, Vice President
NORMAN J. FORD, Vice President
JAMES G. WAKEFIELD, Vice President
EDWARD F. SCHOENECK, Cashier
LEWIS E. GARY, A ssistant Cashier
JAMES A. WALKER, Assistant Cashier
CHARLES NOVAK, A ssistant Cashier
HUGH J. SINCLAIR, A ssistant Cashier

DIRECTORS
WATSON F. BLAIR
CHAUNCEY B. BORLAND
EDWARD B. BUTLER
BENJAMIN CARPENTER
CLYDE M. CARR
HENRY P. CROWELL
ERNEST A. HAMILL
EDMUND D. HULBERT


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Federal Reserve Bank of St. Louis

CHARLES H. HULBURD
CHAS. L. HUTCHINSON
JOHN J. MITCHELL
MARTIN A. RYERSON
J. HARRY SELZ
EDWARD A. SHEDD
ROBERT J. THORNE
CHARLES H. WACKER

S A M U E L H . M IL L E R
C A R L J. S C H M ID L A P P
G E R H A R D M. D A H L
R E E V E SC H LEY

H E N R Y O L L E S H E IM E R
A L F R E D C. A N D R E W S
R O B E R T I. B A R R
S H E R R I L L S M IT H

A ssistant Vice Presidents

E D W IN A. L E E
M. H A D D E N H O W E L L
W IL L IA M E. P U R D Y
A L F R E D W . H U D SO N
G EO RG E H. SA Y LO R
GEORGE H A D D EN
J A M E S L. M I L L E R
C o m p t r o lle r
C a s h ie r
T H O M A S R IT C H IE
W IL L IA M P . H O LLY
DIRECTORS

H E N R Y W . CANNON
A L B E R T H . W I G G IN

F R E D E R IC K H. E C K E R
EUGENE W R THAYER

G E R H A R E p M ^ D A fflfP
,T T ,r
ANDREW FLETCH ER
JA M E S N. H IL L
R E E V E SCH LEY
D A N I E L C. J A C K L IN G
K E N N E T H F . W OOD
C H A R L E S M. S C H W A B
H . W E N D E L L E N D IC O T T
SA M U E L H . M IL L E R
W IL L IA M M. W O O D
E D W A R D R. T IN K E R
J E R E M IA H M IL B A N K
E D W A R D T . N IC H O L S
H E N R Y O L L E S H E IM E R
NEW COM B CARLTON
A R T H U R G. H O F F M A N
WE RECEIVE ACCOUNTS OF BANKS, Bankers, Corporations, Firms
or Individuals on favorable terms, and shall be pleased to meet or cor­
respond with those who contemplate making changes or opening new
accounts.
Through its Trust Department, the Bank offers facilities as: Trustee
under Corporate Mortgages and Indentures of Trust: Depositary under
reorganization and other agreements; Custodian of securities and Fiscal
Agent for Corporations and Individuals: Executor under Wills and Trustee
under Testamentary Trusts; Trustee under Life Trusts.
F O R E IG N E X C H A N G E D E P A R T M E N T

January, 1923

THE NO RTH W ESTERN

79

BANKER

M IN N ESO TA
BANK N E W S
OFFICERS MINNESOTA BANKERS ASSOCIATION

P . J. L E E M AN
P r e s id e n t

P . J. L e em a n , P r e s id e n t, V ic e P r e s id e n t F ir s t N a tio n a l B a n k .M in n e a p o lis
C. A. C h ap m an , V ic e P r e s id e n t, V ic e P r e s id e n t F ir s t N a tio n a l B a n k
.............................................................................................................................R o c h e s te r
J. J. M a lo n ey , T r e a su r e r , C a sh ier F a r m e r s S ta te B a n k ............H ero n L a k e
G. H . R ic h a r d s, S e c r e t a r y .............................................................................. M in n e a p o lis

Buys Interest at Breckenridge
James McGann, formerly cashier
of the First National Bank of
W yndm ere, M innesota, has pur­
chased an interest in the Farmers &
Merchants State Bank of Brecken­
ridge. H e will be active vice pres­
ident. Mr. McGann is a banker of
twenty years active experience in
that field.
Park Region State Re-opens
The Park Region State Bank of
Alexandria, M innesota, which was
closed last April by the state bank­
ing department, has been re-opened
for business with a com plete new
management.
The follow ing are
the officers now in ch arge: Presi­
dent, T. A. Syvrud; vice presidents,
John A. Johnson and J. A. W edum ;
cashier, C. A. P restru d ; assistant
cashier, Ed. Spellbrink. Directors
include : Ole J. Berg, John A. John­
son, Charles Kloehn, Ole Langhaug,
Arne Lee, C. A. Prestrud, T. A.
Syvrud, Theodore W alstead and J.
A. W edum.
T he new cashier, Mr. Prestrud,
has been in the banking business
for the past tw enty-six years. H e
w as at one time with the Elbow
Lake Bank, at Elbow Lake, and was
cashier of the First National Bank
of W endell for tw enty years. H e
has more recently been with the
M innesota
banking
department.
T he newly re-opened bank is cap­
italized at $30,000.
W ithdraw Request for Charter
Application for a charter for the
proposed Merchants State Bank of
St. Paul has been withdrawn by its
St. Paul incorporators. The grant­
ing of the charter was fought by
four St. Paul state banks in the Min­
nesota Transfer district, the state
banks contending that the proposed
bank would be a branch of the Mer­
chants National of St. Paul and that
the banking situation in that dis­

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Federal Reserve Bank of St. Louis

trict did not warrant the organiza­
tion of a new bank. Since the ap­
plication of the proposed bank for
a charter was regarded in the light
of a test case on branch banking,
Minnesota bankers were deeply in­
terested in the case and wanted to
see the matter settled by the state
securities com mission rather than
by voluntary withdrawal of the ap­
plication for charter by the incor­
porators.
St. Paul Has Largest State Bank
St. Paul now has the largest state
bank in Minnesota, the Central M et­
ropolitan Bank, with a capital stock
of $400,000, $80,000 surplus and over
$5,000,000 in deposits. The North
American State Bank of Minneap­
olis was the largest state bank,
prior to its recent absorption by the
Northwestern National of Min­
neapolis.
N ew Banks Get Charters
The Securities State Bank of Min­
neapolis has been granted a charter
by the State Banking department,
according to R. B. Rathbun, super­
intendent of state banks.
The bank has a capital of $100,000
and a surplus of $20,000. G. F.
Kircher of Minneapolis is president
and C. A. Peterson, also of M inne­
apolis, is cashier.
The D odge Center State bank,
with a capital of $25,000 and a sur­
plus of $5,000 also was granted a
charter. Theodore Albrecht and W .
1. Stevens, both of D odge Center,
are president and cashier, respec­
tively.
The Security State Bank of
Milaca, which was closed several
months ago because of depleted re­
serve, has been reopened. The bank
has a capital of $25,000. A. R. N el­
son of Minneapolis is president and
A. H. Dahlberg of Milaca is cashier.

G. H . R IC H A R D S
S e c r e ta r y

Consolidation at Coleraine
The Merchants & Miners State
Bank of Coleraine, M innesota, and
the First National Bank of the same
city, have been consolidated under
the name of the First National
Bank.
Security State Opens for Business
The Security State Bank of Min­
neapolis, located at N icollet Avenue
and Eleventh Street, in the Lafay­
ette Building, has opened its doors
for business. G. F. Kircher, a Min­
neapolis banker and formerly con­
nected with banking interests in
Madison, W isconsin, and Little
Falls, Minnesota, is president of the
new institution. C. W . Dixon, iden­
tified with Minnesota banking inter­
ests for the past twenty-five years,
is vice president, and C. A. Peterson,
formerly credit manager of the
Union State Bank of Minneapolis, is
cashier. Directors of the new bank
include: W . L. W aldren, G. E.
Petters, C. W . D avis, fHarington
Beard, J. H. Mosher, M. W . Hobert,
J. H. Mitchell, A. R. Chestnut, R. I.
Gerrish and J. M. Johnson.
Resigns Presidency at Olivia
C.
A. H eins, for many years pres­
ident of the Peoples First National
Bank of Olivia, Minnesota, has re­
signed and is succeeded by B. F.
Byers, formerly vice president.
Other officers of this bank are: John
Miller, vice president; A. N. Nelson,
cashier; H. C. Burningham, assist­
ant cashier.
Is Elected Director
A t a special m eeting of the board
of directors of the Citizens National
Bank at Faribault, Minnesota,
W alter M. N utting was chosen as a
director to succeed his father, the
late Mr. Elija Nutting. Mr. N utting
is manager of the N utting Truck
Company in that city.

80

THE NO RTH W ESTERN

Directors Re-elected
Theodore W old, vice president of
the Northwestern National Bank of
Minneapolis, and F. R. Bigelow,
president of the St. Paul Fire &
Marine Ins. Co. of St. Paul, have
been re-elected directors of the Fed­
eral Reserve Bank for a period of
three years. Mr. W old is a Class A
director, Group One, which repre­
sents the large member banks. Mr.
B igelow is a Class B director, Group
One, representing business men on
the board.
Minnesota in Good Shape
Minnesota is twenty-third in the
nation in the size of its per capita
state debt. The state’s debt is given
at $8.14 per capita. Minnesota ac­
tually is much better off financially
than almost any other state in the
union.

He Chooses the
M artin iqu e
H ow can w e m a k e M m
pleased w ith his choice?

T H IS is th e WAY
E w ill assign him to one of
our w ell furnished, airy rooms
on an upper floor.

W

We w ill see that he tastes the de­
licious club b rea kfa sts we serve at
45c to $1.00 and the w onderful table
d ’hote d in n er at $1.75 and $2.00.
We w ill ask him to look out of
his bedroom window to see that he
can alm ost touch the great m a n u ­
fa c tu rin g a n d w holesale distinct.
If he says theatre, w e’ll suggest
that the short walk up Broadway to
all theatres is too sh o rt and too in ­
te restin g to take a taxi.
And when he has finished his
stay and finds that h is room has
cost as little as $2.50 a day w ith o u t
bath, and $3.50 w ith bath, we know
that next tim e his choice is certain
to be th e M artinique.
A c ro ss th e s tr e e t fro m
H o tel M cA lpin and under
th e s a m e m a n agem en t.

MARTINIQUE
Broadway at 32nd Street,

N ew Y ork

Frank E. Jar* - Resident M anager


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Federal Reserve Bank of St. Louis

BANKER

This is according to a recent report
made by the Bank of America of New
York.
While Minnesota issued $20,905,000 bonds to pay its bonus given
world war veterans, and has paid
many other millions out of its rev­
enue fund, the bonus indebtedness
has been cut down to $15,905,000,
with the total bonded indebtedness
of the state at only $18,515,000, in­
cluding the bonus, at the present
time.
This leaves the state in fine finan­
cial shape to loan its credit to farm­
ers under the rural credit amendment
to the constitution just adopted by the
people, in accordance with which the
1923 legislature will adopt an act pro­
viding for state bonds.
Penn Bank Has N ew Cashier
J. J. Oys, formerly cashier of the
First National Bank of Crosby,
North Dakota, has been appointed
cashier of the Penn Avenue Bank,
of Minneapolis.
This institution
was recently purchased by C. T.
Jaffray, president of the First N a­
tional Bank of Minneapolis, and
four other Minneapolis bankers.
Takes Over Combination Desk
The Fritz-Cross Company, bank
and office equipment, of St. Paul, Min­
nesota, have recently been given the
exclusive right to manufacture and
market the “Falls Combination Book­
keeping Machine Desk,” which has
met with favor among hundreds of
business houses of the country. The
desk, which was designed and patented
by A. S. Falls, of Chicago, was for­
merly marketed by the Falls Bank
Desk Company, of Chicago. Features
of the desk are its ability to consoli­
date the operator’s work in sorting
checks and deposit tickets at one desk,
a closed-in feature which eliminates
noise, and its speed of operation.
The popularity of the desk among
its 2,500 users has caused several in­
fringements of patent, which are now
being determined in court, in order to
protect the interests of the FritzCross Company.
In N ew Bank Building
The Farmers & Merchants National
Bank, of Cannon Falls, Minnesota, re­
cently occupied the new bank building
erected at a cost of $25,000. Officers
of this institution a re: President, M.
N. ; Gergen; vice president, F. W.
Thayer; cashier, M. E. Holmes. Di­
rectors include: M. N. Gergen, F.
W. Thayer, Jacob Gergen, A. R.
Mensing, William Gergen and J. L.
Erickson.

January, 1923

A. I. B. H olds Cheerofete
The Minneapolis chapter of the
American Institute of Banking held
its sixth annual Cheerofete in the as­
sembly room of Hotel Radisson
recently. The Cheerofete committee
included: F. E. King, chairm an:
Morgan W. Vaughan, C. M. Richard,
Carl Hanson, Howard Bailey, Ray
Asselin, W. H. Davis, Ray Blair, Fred
Kelly, B. M. Anderson, R. A. Lomar,
G. L. Harrington, Leo Lenertz, and
Wayne Maxwell.
Buys Northeast State Bank
The Northeast State Bank of
Minneapolis has been purchased by
the Northw estern National Bank,
and will be operated as a branch of­
fice, according to a recent announce­
ment by President E. W . Decker.
Robert K. Blinkenberg will become
manager of the office and Charles
R. Ciernia and C. P. Gerber, who
have been assistant cashiers, will
become assistant managers.
The Northeast State was capital­
ized at $50,000 and had surplus and
undivided profits of $75,000. D e­
posits at a recent call totalled
$1,189,392.
Elect Officers at Cokato
At a meeting of the directors of the
State Bank of Cokato, Minn., the fol­
lowing officers were elected for the
coming year: President, Frank Swan­
son ; vice presidents, H. C. Bull and S.
J. Swanson; cashier, C. R. Peterson;
assistant cashier, C. E. Osterberg. The
State Bank of Cokato is the largest
bank in Wright county and was or­
ganized thirty years ago. According
to present plans, the bank building
will be completely remodeled some
time during the coming spring.
To Increase Capital Stock
The Northern National Bank of
Duluth, Minn., has made plans to in­
crease its capital stock from $750,000
to $1,000,000 at the annual meeting of
stockholders to be held in January,
1923. Two years ago the capital stock
of this institution was increased from
$500,000 to its present figure.
Buy Bank at B ig Lake
The First National Bank, of Big
Lake, Minnesota, has been purchased
by O. H. Oden, formerly cashier of
the First National Bank, of Baudette,
Minnesota, and by R. M. Skinner.
Henry Ford can never hope to
have more money than John D.
Every flivver he builds means more
money for the Standard Oil Com­
pany.— N ew York Tribune.

January, 1923

THE NO RTH W ESTERN

Buys Interests at Hartland
Geo. L. Martin, of Albert Lea, has
purchased the interests of E. H.
Stensrud, vice president, in the
State Bank of Hartland, Minnesota,
and has been elected a director of
that institution. A t the recent an­
nual m eeting of the State Bank, the
follow ing officers were elected for
the com ing year : President, A. C.
Erickson ; vice president, C. H.
Christopherson ; cashier, J. A. Halvorson. The bank recently paid a
semi-annual dividend of ten per
cent.
Northwestern Nat. Gives Banquet
Officers of the Northwestern N a­
tional Bank, the Minnesota Loan &
Trust Company and members of the
boards of directors of the four
Northwestern National Bank offices
were guests at a recent dinner given
by that bank at the Minneapolis
club. E. W . Decker, president, was
the speaker of the evening, and em­
phasized the need of better bank
service to the public.
Union Bank Is Opened
T he Transportation Brotherhoods
National Bank, the sixth of its kind
to be established in the United
States, has opened for business in
Minneapolis. It has capital stock
of $200,000 and a $20,000 surplus,
Warren S. Stone, grand chief of the
Brotherhood of Locom otive E ngi­
neers, is president, and W . P. K en­
nedy, of Minneapolis,, is vice presi­
dent. Robert G. Harding is cashier,
and C. A. Anderson, formerly presi­
dent of the Nokomis State Bank of
Nokomis, M innesota, is assistant
cashier.

THE

To Encourage Better Abstracts
A silver loving cup, offered by the
Federal Land Bank of St. Paul, is
the prize being awarded by the
State Abstractors Association of
Minnesota, for the best abstract of
title submitted in a “Better Ab­
stract” contest. A set of books en
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Federal Reserve Bank of St. Louis

CHOICE

of 6 0 ,0 0 0
More than sixty thousand people carry their accounts with
the First National Bank in Minneapolis.
This large patronage is made up of people in every walk of
life. It represents the laboring or industrial class; the pro­
fessional; business and commercial activities of this great city.
W e extend to our patrons and friends all the strength and
service features o f the largest bank in Minneapolis through
five conveniently located offices.

First N ational Bank
Minneapolis

C O N F I D E N T I A L S E R V I C E — to those w is h in g to buy or sell

BANKS OR BANK STOCKS
J. W . O V E R S T R E E T
801

M et r o p o li ta n

Bank

Build in g

COMPANY

::___________ M in nea p oli s,

M in nesota

A H appy an d P rosperou s N e w Y ear
It affords us pleasure to extend to our patrons and friends b est w ish es for a
happy and prosperous N ew Year.
Should you require additional banking fa cilities at the head of the lakes, or
desire to m ake a change, th is stron g and conservative bank extends a m ost
cordial invitation to m ake it your banking house.

T H E F IR S T N A T IO N A L BANK
DULUTH,
C a p ital,
The

S u r p lu s and

Bank

MINN.
Profits, $4,000,000.00

of C o m p le te

Pe rs ona l

S e rv ic e __________________

Burglar Alarm System s
Guaranteed Electric

Heads Junior Chapter of A. I. B.
Mrs. George H. Cool, formerly
president of the St. Paul Business
and Professional W om en’s A ssocia­
tion, has been elected president of
the Junior St. Paul chapter of the
A. I. B. The Junior Chapter is an
auxiliary of the St. Paul chapter of
the A. I. B.
Is W ith Federal Land Bank
E.
E. T hw ing, for the past tw enty
years connected with the Augusta
State Bank of Augusta, W isconsin,
has been made assistant secretary of
the Federal Land Bank of St. Paul.

81

BANKER

BUILT BY

The American Bank Protection
Company, Inc.
CAPITAL $150,000.00
M inneapolis
Are reconized by all

-

M innesota

on ing Companies—Write for particulars.
DO IT NOW.

We also build Safety Deposit Boxes, Vault Omnibuses,
Steel Filing Devices.

A d v e rtise in T h e N o rth w estern
Banker

82

THE NO RTH W ESTERN BANKER

titled “Warfield on A bstracts” is of­
fered as second prize. Judges of the
contest are: E. O. W ergedahl, St.
P a u l; J. J. Gleason, M inneapolis;
and John F. Scott, of the Federal
Land Bank.
Is Elected V ice President
C. E. Hill, vice president of the
Minneapolis National bank, of Minne­
apolis, which was absorbed by the
Northwestern National bank, has been
elected a vice president of the North­
western bank at a meeting of its board
of directors. Mr. Hill will devote his
time largely to the affairs of the Lake
street office of the Northwestern Na­
tional which has been opened in the
banking house of the Minneapolis Na­
tional.
E. W. Decker, president of the
Northwestern National, announced
that G. J. Bach, formerly cashier of
the Minneapolis National, would be­
come manager of the Lake Street of­
fice while L. H. Berg and R. E. Bostwick would be assistant managers.
The advisory board of the Lake
Street office, which formerly was the
directorate of the Minneapolis Na­
tional, includes J. P. Bruer, chairman,
and J. S. Calder, H. H. Chamberlain,
L. M. Chamberlain, W. A. Cullen, J.

D. Ekstrum, E. S. Elwell, John Fagerstrom, C. E. Hill, G. T. Honstain,
Adolph Johnson, T. N. Kenyon, C.
V. Leavitt, C. A. Paulson and William
R. Sweatt.
Celebrates Ninth Anniversary
The First State Bank, of Crosby,
Minnesota, recently celebrated the
ninth anniversary of its organization,
having been first opened to the public
on December 22, 1913.
This bank was first organized with
the following officers and directors:
J. B. Galarneault, president; W. S.
Pitt, vice president; S. G. Latta, cash­
ier; and James Nelson and C. P. DeLaittre, directors.
The present officers and directors
of the First State Bank are as fol­
lows : Mons Mahlum, president; F.
A. Lindbergh, vice president; W. L.
Merrick, cashier; J. W. Leighton, as­
sistant cashier; J. B. Galarneault and
Geo. H. Crosby, Jr., directors.
W ill Hold Annual M eeting
The First National and the People’s
National Banks, of Proctor, Minne­
sota, will hold their annual meetings
at the bank offices January 9.
The officers and board of directors
of the First National follow: H. H.
Peyton, president; J. W. Kreitter, vice

Bureau o f
Canadian
Inform ation

W

T h e C a n a d ia n P a cif ic R a il w a y th ro ug h its Bur ea u of
Canadian

Information,

latest reliable

will

f u r n is h

you

w it h

trial and a g ric u lt u r a l d e v elop m ent in C a n a d a .
R e fe renc e

the

in form a ti on on eve ry phase of in d us­

Libraries

m a in ta in ed

at

In the

C hic a go ,

January, 1923

president; Fred C. Mitchell, cashier;
George Bemel, assistant cashier; H.
H. Peyton, J. W. Kreitter, Fred C.
Mitchell, C. W. Seddon, Dr. E. E.
Webber, Peter Severson and R. G.
Wombacher, board of directors.
Officers of the People’s National
Bank are : J. H. Ingwersen, presi­
dent ; Andrew Johnson, vice president ;
H. W. Rice, cashier; Ivor F. Ander­
son, assistant cashier. The board of
directors is composed of the follow­
ing: J. H. Ingwersen, Andrew John­
son, F. J. Carlson, Arthur Eklund, C.
J. Buell, S. J. Raetz and H. W. Rice.
Pioneer St. Paul Banker Dies.
W illiam B. Dean, pioneer St. Paul
business man and banker, died re­
cently at his home in St. Paul, fol­
low ing a short illness. H e had been
connected with the business life of
the city for more than sixty years.
Mr. Dean was a director in the
Great Northern railroad, in the Sec­
ond National Bank, and, follow ing
its consolidation he became a direc­
tor of the First National. H e was
also a director of the Northwestern
Drug Company, the St. Paul Fire &
Marine Insurance Company, a trus­
tee of the State Savings Bank and
of the Mutual Life Insurance Com­
pany of N ew York.

C onstructive
Criticisms

New

Y o r k and Mon tr ea l are co m p le te data on natural re­
sour ces, clim a te ,
enings,

etc.,

in

labor, tra nsp orta ti on,
C a na da .

A d d itio n a l

bu sin ess op­
data

is

con­

s ta n tl y being added.

Developm ent Branch
If you are co n sid e r in g the esta b li sh m e n t of y o u r in­
d u stry in C a n a d a , eit h er to develop C a n a d i a n bu si­
ness or ex port trade, you are invited to c onsult th is
Bran ch .
A n ex port staff is m a in ta in ed to a cq uir e
and inves tig ate in for m a ti on re lative to C a n a d ia n in­
d us tri al raw m ate ri als.
Information as to such raw
m a te ria ls as well as upon a n y p ra c ti ca l pro blem af­
fecting the esta b li sh m e n t of y o u r in dus tr y, in c lu d in g
m ark ets , co m p eti ti on , labor costs, power, fuel, etc., is
availa bl e.
•
No charge or obligation a ttac h e d to the above service. Busi­
ness men and organizations are invited to make use of it.

CANADIAN PACIFIC RAILWAY
D ep artm en t of C olonization and D evelop m ent
W in d s o r S t a t io n
M o n tr e a l, C a n .

C . P . R . B u ild in g
M a d is o n A ve. a t 4 4 th S t .
N ew Y o r k


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Federal Reserve Bank of St. Louis

165 E. O n ta r io S t .
C h ic a g o

— and suggestions are always welcome in
our office.
The Northwestern Banker is your maga­
zine and its main business is to please you.
If you can suggest improvements in our
magazine policy we shall feel deeply in­
debted.

The Northwestern Banker
D es M oin es

Iowa

January, 1923

THE N O R T H W E S T E R N

Buys Minneapolis National
Purchase of the Minneapolis Na­
tional Bank, 7 West Lake street, by
the Northwestern National Bank, has
been announced by E. W. Decker,
president of the Northwestern Na­
tional Bank.
The announcement
followed formal action by the board of
directors of the Minneapolis National
Bank in accepting the terms of
purchase.
Mr. Decker said the bank will be
operated with the same personnel, as
the Lake Street office of the North­
western National, and that Clarence
Hill, vice president of the Minneapolis
National, will become a vice president
of the absorbing institution.
The deposits of the absorbed bank
ran nearly $3,000,000 and bring the
present total of the Northwestern to
$72,000,000. The deposits of the lat­
ter bank when it began its policy of
buying outlying banks and establish­
ing outlying offices in them last Au­
gust was $50,000,000. The $22,000,000 gain is derived largely from the
acquisition of the Lincoln National,
South Side State, North American,
North East State and Minneapolis
National.
Resigns at Ironwood
Seldon B. Grary, cashier of the Iron
National Bank, of Ironwood, Minne­
sota, since its organization three years
ago, has tendered his resignation to
the board of directors, effective Janu­
ary 1.
Mr. Crary expects to remain in
Ironwood. He contemplates engaging
in business after he has taken a
month’s vacation, during which time
he will visit Detroit and eastern cities.
F.
R. Burrell, of late with the First
National Bank, of Minneapolis, has
been appointed by B. A. Morgan to
succeed Mr. Crary from January 1
until the January meeting of the bank’s
board of directors, when formal ac­
tion will be taken.
Mr. Burrell has been engaged in the
banking business in Minnesota for fif­
II
teen years, during which time he was
prominently identified with different
leading banks in that state.
I have often been asked to define
the true secret of success. It is
thrift in all its phases, and especially
thrift as applied to saving. Savings
is the first great principle of success.
It creates independence, it gives a
young man standing, fills him with
vigor, it stim ulates him with proper
en erg y ; in fact, it brings to him the
best part of any success— happiness
and contentm ent.— Sir Thomas Lipton.

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Federal Reserve Bank of St. Louis

BANKER

83

O ur P u b lic A cco u n ta n ts
T h e ir N e c e s s a r y S e r v ic e
to P r o g r e s s iv e B u s in e s s

N o practice in Business is so necessary to logical
and safe progress— the keynote of industry today
— as that of the Public Accountants.
Organization, System, Method, Control, irresistible
factors which determine the value of success, de­
pend upon their service.
Theirs the power to make figures talk, telling o f
th in g s as th e y are. They the guides, and the
guards, to progressive action. Thru their efforts,
Ignorance, Gamble and Guess are eliminated; M is­
takes, Inefficiency and Waste disappear; Profit is
assured, and Loss prevented.
The cornerstone of Credit is their C o m p le te A u d it.
Their monthly B alan ce S h e e ts and O p e ra tin g
S ta te m e n ts , and above all, their B u sin ess B u d ­
g e t, are the safeguards against Over-Production,
Over-Expansion and Over-Expenditure.
They have made C o st A c c o u n tin g a science—
and absolutely necessary to manufacturing success.
I n v e n to r y troubles are cleared by their simple
S y s te m s .
Sales Promotion is blind without their S cien tific
M a rk e t A n a ly sis.
Tax P ro b le m s seem to settle themselves thru their
practical knowledge of the law and their under­
standing of figures.
While their B u sin ess G ra p h ics put before the
executive a moving picture of his business activities.

ERNST & ERNST
A U D IT S

—

SYSTEMS

TAX S E R V IC E
NEW YORK
PH ILA DELPHIA
BOSTON
PROVIDENCE
W A SH IN G T O N

CH ICA G O
M IN NEA PO LIS
ST. PA U L
ST. LO UIS
K A N S A S CITY

CLEVELAND
BUFFALO
PITTSB UR G H
D E TRO IT
CINCINNATI

IND IA NA POLIS
TOLEDO
ATLANTA
RICHM OND
BALTIM ORE

NEW ORLEANS
DALLAS
FORT W ORTH
HOUSTON
DENVER

Dominant Circulation
The Northwestern Banker is the dominant bank­
ing magazine of the great Northwest.
In Minnesota, for instance, it has 188% greater
circulation than any other banking publication with
an A. B. C. paid circulation.

THE NO RTH W ESTERN

84

BANKER

January, 1923

N O R T H D A K O TA
BANK N E W S
OFFICERS NORTH DAKOTA BANKERS ASSOCIATION

M. H . S P R A G U E
P r e s id e n t

M. H . S p r a g u e , P r e s id e n t, C a sh ier F ir s t N a tio n a l B a n k ..................... G ra fto n
M. R. P o r te r , V ic e P r e s id e n t, V ic e P r e s id e n t S c a n d in a v ia n -A m e r ic a n
B a n k ............................................................................................................................... M in ot
R. H . F a r m e r , T r e a su r e r , P r e s id e n t F ir s t B a n k o f F la x t o n ............F la x t o n
W . C. M acfad d en , S e c r e t a r y ...................................................................................... F a r g o

W ard County Bankers Organize
Organize Fargo A. I. B.
Officials of tw enty-seven Ward
The Fargo chapter of the American
county banks, m eeting at Minot,
Institute of Banking was organized
North Dakota, organized the Ward
at a meeting in the commercial club County Bankers’ association with
rooms at Fargo, North Dakota, with the following officers: David Clark
the following officers: President, B. of Kenmare, president, and PI. E.
P. Schm allen; vice president, Ed. Byorum of Minot, secretary.
B aier; secretary, Dan M acLaren;
treasurer, Luella Mellum.
North Dakota Bank Item s
The chapter was organized by
A charter has been issued by the
Clarence R. Chaney, of the North­
secretary of stalte for The M er­
western National Bank of Min­ chants State Bank of Pingree, Stuts­
neapolis, vice president of the na­ man county, North Dakota, with
tional organization. Mr. Chaney capitalization of $15,000. Share­
gave an address in which he out­ holders and directors are: E. P.
lined the plan of organization and Krogh, Pingree; C. H. Simpson,
explained the work of the institute. M cVille; R. C. Hanson, Pingree.
F.
A. Irish, vice president of the
Theo. Ulmer, formerly assistant
First National Bank of Fargo, spoke
of the work of the institute, declaring cashier of the Farmers State Bank
that the study course was one of the of Fullerton, is now cashier, suc­
greatest things that had been pro­ ceeding H. E. Buttweiler. H. B.
mulgated for the development and W ittenberg succeeds Mr. Ulmer as
betterment of American banking. assistant cashier.
Names of prominent officials of some
S. D. McCullough succeeds H. P.
of the greatest banks of the country
were cited as examples of the work Hayden as assistant cashier in the
First State Bank of Brisbane.
and value of the institute.
H. W. Gearey, president of the
G. R. H ougen succeeds C. D.
Merchants National Bank and of the Pancratz as cashier of the Mohall
Fargo Clearing House Association, Security Bank.
called the meeting to order. G. H.
Nesbit of the First National Bank, was
Louis Olson succeeds E. V . Lahr
elected temporary chairman.
as president of the Menoken Farm­
ers State Bank. C. P. Kjeseth suc­
ceeds H. W . D oty as cashier of this
Bankers W ant $2 W heat
institution. Mr. Kjeseth has also
The Griggs County Bankers as­ been made a director.
sociation, at a m eeting held in Cooperstown, North Dakota, attended
Thomas Pierce, formerly cashier
by representatives of every bank in of the Enderlin State Bank, is now
the county except one, w ent on rec­ president, and is succeeded as
ord as favoring the fixing of a mini­ cashier by Lena Selvig.
mum price on grain, with $2 a
bushel as the figure for No. 1 wheat.
J. W . Schmidt has been elected
Resolutions were drawn up in ac­ cashier and director of the Gardena
cordance with the decision of the State Bank.
m eeting to be sent to the North D a­
F. J. Pahl, formerly bookkeeper
kota senators and representatives
and assistant cashier at the Geneseo
in congress.

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Federal Reserve Bank of St. Louis

State Bank, succeeds A. C. Bonzer
as cashier.
A ugust W . Johnson succeeds J.
H. Berg as vice president and di­
rector of the First State Bank of
Glenfield. W . H. Fallen, formerly
assistant cashier, succeeds F. J.
H eaney as cashier.
Everett D. Bower has been elected
assistant treasurer of the Northern
Trust Company of Fargo.
Chas. H. McGihon succeeds H. J.
Lokstad as cashier and director of
the State Bank of Ross.
L. G. Borsvold, M. H. Olson and
I. A. Johnson have been elected di­
rectors of the Glenburn State Bank.
Leo Carl Fischer has been made
assistant cashier of the Citizens
State Bank of W ales.
The Farmers Equity State Bank
of Mandan has been granted permis­
sion by the State Banking Board to
change its corporate name to the
Farmers State Bank of Mandan.
North Dakota Bonds
T he Minnesota Loan and Trust
company of Minneapolis is an­
nouncing an attractive issue of $400,000 State of North Dakota five and
one-half per cent Mill and Elevator
Bonds. The assessed valuation of
the state is $1,312,000,000, and the
bonded debt including this issue is
$9,902,000 with a sinking fund of
$423,359.
In the circular describing the
issue the company has the follow ing
to say regarding political and finan­
cial conditions in the state: “North
Dakota is now on a sound and stable
financial basis and its political con­
dition is considerably stronger than
in many other states that have al­
ways maintained the highest credit

January, 1923

THE NO RTHW ESTERN

rating. During the past few years
when land values in many parts of
the country were rapidly advancing,
North Dakota’s political situation
discouraged the entry of outside
capital, consequently the North
Dakota farmer was unable to se­
cure an abundance of credit. The
state is particularly fortunate in
having escaped from this abnormal
advance of land values that has been
detrimental to many states in the
Central W est. These facts, coupled
with the present conservative gov­
ernment, are strong indications that
North Dakota bonds are an exceedingly good investm ent.”
Changes Name
The Farmers Equity State Bank,
of Mandan, North Dakota, has
amended its articles of incorporation
and will hereafter be known as The
Farmers State Bank of Mandan,
North Dakota.
This bank was incorporated in the
fore part of 1917 and opened for busi­
ness on April 19th of that year, using
as a banking house the old frame
building which occupied the site of
their present handsome brick building,
which they continued to use until the
completion of their new building on
May 10, 1919.
This bank has eighty-six stock­
holders practically all residents of
Mandan and Morton county.
Prom inent Banker Dies
J. J. Murphy, of New England,
North Dakota, former cashier of the
Securities State Bank, and widely
known in banking circles, died re­
cently.
Mr. Murphy was 44 years of age
and had been active in the establish­
ment of banks at Midway, Amidon
and Havlac, North Dakota, and Scoby,
Montana, and was an incorporator of
the State National Bank at Mobridge,
South Dakota.
Leaves Bank of North Dakota
A. H. Lindeman, head of the farm
loan department of the Bank of North
Dakota, will resign his position on
January 1 to become the active direc­
tor of the farm loan department of the
Capital Trust and Savings Bank, of
St. Paul.
Pays 20% to Depositors
A 20 per cent payment to depositors
of the People’s State Bank, of Grand
Forks, North Dakota, closed in Feb­
ruary, 1921, was made recently by
John Valley, receiver. Approximate­
ly $12,000 have been paid out of about
$32,000 available.


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Federal Reserve Bank of St. Louis

BANKER

C o n t i n e n t a l S e r v ic e

t r a n s it
R 7TONTH in and month out
the transit services offered
by this Bank give new demonstra­
tions of speed and efficiency. It
is more than a main-line service.
It reaches into the by-ways.
Connections of long standing with
thousands of banks, a specialized
departm ent with 300 h ighly
trained employes, and experienced
and expert management make
possible the greatest dispatch and
the saving of time and interest.
Bankers are invited to investigate
and test our transit service .

CONTINENTAL W
COMMERCIAL

BANKS
C H IC A G O

85

THE NO RTHW ESTERN BANKER

86

j^íMfDROVERS

SERVIC E [fi

R IE N D L IN E S S is particularly ap­
propriate to the holiday season,
but the Drovers maintains that at­
mosphere throughout the year.
The good things we wish for you
today, w e wish for you for all of 1923.
A t the outset of this new year, let the
Drovers help you make the most of your
Chicago connection.
“Drovers Service”
covers every possible requirement of outof-town banks.
All your business is
handled promptly and efficiently under one
roof.
Here are a few of the many things we
do for our correspondents:
Furnish statistical and credit
information
Purchase commercial paper
Accept bonds and securities
for safekeeping
Furnish foreign exchange
Purchase and sell bonds and
securities
Extend immediate credit for
livestock proceeds
Special attention given Stock
Yards collections
W e would like to tell you how we save
time for you in handling your Chicago busi­
ness.

Direct Member Chicago Clearing
H om e Association

flR D V E R S
JLI
National Rank
Unían Sta ckYards - Chicago
Q
l DROVERS -SERVICE, [fl


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Federal Reserve Bank of St. Louis

January, 1928
Ask Your Banker

“When in doubt ask your banker”
is a good slogan at all times for in­
vestors of Iowa City and elsewhere.
Right now it is particularly appropri­
ate as the time for maturity of the
1918 war savings stamps draws near.
In Johnson county alone about $450,000 worth of these stamps are held at
the present time and this estimate is
conservative. In the field covered by
the Iowa City Press-Citizen this
amount is greatly increased.
Newspapers everywhere are warn­
ing their patrons as to the investment
they will make with the amount of
money they will obtain on their stamp
savings when the war savings stamps
are redeemed by Uncle Sam on Jan­
uary 1. Wild-cat promoters are lay­
ing in wait for the small investor as
represented by the war saving stamp
owner who will cash in his stamps in
January and have the amount for re­
investment. War savings stamps were
bought principally by people who could
save only on a small scale from com­
paratively slender incomes and this is
the people upon whom the talons of
wild-cat stock promoters like best to
fasten. It would be a tragedy should
people of moderate means be deceived
into throwing away savings accumu­
lated by self-denial in less prosperous
times than these.
Absolute safety of investment is
necessary if the investor of small sums
is to keep his savings intact and de­
sires to increase them. Stock market
“investors” have wished that they had
placed their savings in Uncle Sam’s se­
curities instead of playing the market.
The investor in war savings certifi­
cates which are maturing on January
1 has in his or her power the ability
to form the basis for snug saving or
to lose all that has been saved through
re-investment in dishonest or uncer­
tain securities.
Consult your banker before you re­
invest your cash received from matur­
ing war savings stamps. He will ad­
vise you and the result is certain to
be safe and satisfactory.— From “The
Iowa City Press-Citizen.”
Madame Vernaux, for many years
a teacher in Russian schools, writes
that boys carry daggers and revol­
vers charged with blank cartridges
to school. On one occasion they set
a girls’ dormitory on fire. Give the
little dears time and they will have
bullets in their pistols and learn all
the lessons in murder and rapine
which their fathers are teaching
them. B olshevist freedom appeals
to savage boys.— Chicago Journal of
Commerce.

THE N O R T H W E ST E R N

January, 1923

I OWA

BANKER

BANK

87

N E WS

COUNCIL OF ADM INISTRATION
Iow a B an k ers A sso cia tio n
ADMINISTRATIVE COMMITTEE

A. M. H e n d e r so n , P r e s id e n t C a sh ie r F ir s t N a tl. B a n k ...................S to r y C ity
W . A. L an e, V ice P r e sid e n t, C a sh ier F ir s t N a tl. B a n k ...................W a te r lo o
T h o s. R. W a tts , T r e a su r e r , C a sh ier C itiz e n s B a n k ................ G rand J u n c tio n
F r a n k W a rn er, S e c r e t a r y ............................................................................ .D e s M oin es
GROUP CHAIRMEN

G. J. S lob e, Chm . G roup 1, C a sh ie r N o r th w e s te r n S ta te B a n k , O ran ge C ity
E . F . K in g , Chm . G roup 2 . . P r e s id e n t F ir s t N a tio n a l B a n k , W e b ste r C ity
M. W . E llis , Chm . G rou p 3. . .P r e s . S e c u r ity Tr. an d S av. B k ., C h a r le s C ity
W . F . R e in e c k e , Chm . G roup 4 .................................................................................
..........................C a sh ie r S tr a w b e r r y P o in t S ta te B a n k , S tr a w b e r r y P o in t
C. F . C a d w ell, Chm . G roup 5 ................ C a sh ie r F ir s t N a tio n a l B a n k , E llio t t
O. F . E c k lu n d , Chm . G roup 6 ............C a sh ie r F ir s t N a tio n a l B a n k , N e w to n
E d m u n d W . M iller, Chm . G roup 7 . . P r e s. Com . N a tio n a l B a n k , W a te r lo o
J o e K e lso , Chm . G roup 8 ............C a sh ier B a n k o f J. K e lso & Co., B e lle v u e
N. C. H o ffm a n , Chm. G roup 9, C ash . M u rray B k . o f S im m o n s & Co., M u rray
C. D. E v a n s , Chm . G roup 10. .C a s h ie r S o u th O ttu m w a S v g s. B k ., O ttu m w a
W a lk e r D. H a n n a , Chm . G roup 11. .V ic e - P r e s . B a n k o f W in field , W in field
F r a n k B. T e tte r , e x -o ffic io . .V ic e P r e s id e n t, I o w a N a tl. B a n k , D a v e n p o r t

Union Savings and Davenport
Savings in Big Merger
H E Union Savings Bank and
the Davenport Savings Bank, of
Davenport, Iowa, have been
merged into one bank, under the name
of the Union-Davenport Trust & Sav­
ings Bank. The consolidation of these
two strong banks will give Davenport

T

line with the plans of officials of both
banks to give the city better banking
service through one immense organiza­
tion.
Affiliated with the Union Savings
Bank is the. Union Bond and Mort­
gage Company, with capital, surplus
and undivided profits of more than
$700,000. This company will con­
tinue to function under the guidance
of the new management of the merged
institutions.

WILLIAM H EU Ett, P resident
OTTO HILL, V ice P resident

a large financial institution with a com­
bined capital of $800,000, surplus and
undivided profits of more than $900,000 and deposits of $10,600,000.
The merger of the two banks is in

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Federal Reserve Bank of St. Louis

The late John F. Dow, president of
the Davenport Savings Bank, was to
have headed the new bank as chair­
man of the board of directors. W il­

liam Heuer will be president, Otto
Hill and Jos. J. Brus, vice presi­
dents, and Smith Blackman, cashier.
Albert J. Jensen, Fred W . Zabel and
A. H. Bierkamp will be assistant
vice presidents and Henry True,
Chester U. Schaeffer and Roy Krabbenhoeft assistant cashiers.
Mr. Heuer became cashier of the
Union Savings in 1904 and was made
president of that institution in 1919.
Mr. Hill joined the staff of the Daven­
port Savings in 1908 and was made
cashier in 1912. He served in that
capacity until the first of this year,
when he was elected vice president.
The new bank is not only repre­
sented by a strong group of officers,
but it is likewise backed by a finan­
cially sturdy directorate. The direc­
tors of both banks will be included in
the new board of directors, with a
total list of twenty-two names.
The Davenport Savings Bank was
organized in 1870 and recently cele­
brated its golden anniversary. It has
capital stock of $300,000. The Union
Savings dates back to 1891 and had,
on October 31, 1922, capital stock of
$400,000, with deposits of $5,400,000.
Depositors in both banks include more
than twenty thousand persons in the
Davenport territory.
Celebrates Thirty-fifth Birthday
The Rockford State Bank, of Rock­
ford, Iowa, has reached the thirtyfifth milestone as a banking house
serving the Rockford community. The
bank opened for business on Monday,
December 18, 1887, with a capital
stock of $50,000, and a paid-up capital
of $25,000. The first officers of the
bank were: F. C. Johnson, president;
T. S. Roberts, cashier; while the di­
rectors w ere: D. A. Scott, James
Murray and Allison Hubbard. The
bank was conducted as a private one
until 1902.

THE NO RTH W ESTERN BANKER

Offers Trophy for B est Corn
Grundy county, Iowa, farmers will
have a chance to win a large valuable
silver trophy awarded each year by
the Farmers Savings Bank, of Hol­
land, for the best ten ears of corn from
that county, shown at the large state
show which will be held, for Iowa
farmers only, at Ames during the
farmers’ short course, January 29 to
February 3.
The trophy offered by the Farmers
Savings Bank is awarded for only one
year and is passed along from winner
to winner, each having his name en­
graved on the cup. It has been won
by D. H. Boven, L. W. Plagan, W il­
helm Plager, H. L. Schwartz. These
men are barred from further competi­
tion for this cup. All other exhibitors
from Grundy county who make entry
in this class will compete.
In addition to competing for the
county trophy, the entries of corn are
eligible to compete in the state classes
for which a $2,000 cash premium list
has been arranged. The twentieth an­
nual State Corn Show, the largest of
its kind in the world, will be held the
latter part of January. It is under the
auspices of the Iowa Corn and Small
Grain Growers’ Association, an organ­
ization of Iowa farmers who are vital­
ly interested in the development of
good seed corn for the state.

Vice President and
T reasurer

A• E. READ
Secretary

The advice, aid and active co-operation of many of
Iowa’s leading bankers has been a great factor in the
growth o f Burns Brothers Company.
Many of these bankers are affiliated with this Com­
pany as Directory or Advisory Board Members.
In selecting sound, safe securities for our own invest­
m ent and that of our clients, we not only have the ex­
perience of our officers, but of these bankers as well.
As especially suitable for conservative investm ent we
offer
Iowa M unicipal B onds fre e from State,
County, School and C ity Taxation—
also exem pt from F ederal Incom e Tax
and Surtax.

BURNS BROTHERSCOMPANY
GROUND FLOOR 313 FIFTH STREET


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Federal Reserve Bank of St. Louis

Bankers Hold Convention
The annual convention of the Lyon
County Bankers Association was held
at Rock Rapids, Iowa. A large num­
ber of bankers were present and a
good time was had by everyone pres­
ent. Speakers on the program were
Senator Ben C. Abben, Jr., Repre­
sentative T. E. Moen, O. J. Reimers,
Lester Shepherd, Chas. Shade, A.
Beckhoff and Mort Anderson. At the
annual election of officers O. E. H ol­
ley, of Larchwood, was chosen presi­
dent ; E. C. Koneck, of Doon, was
chosen secretary-treasurer.

Storm Lake Banker Dies

A ny inform ation w ill be sent im m ediately upon re­
quest addressed to Bond Department.

^ = = D £ S

January, 1923

M O /A =====

George W itter, vice president of
the Commercial Trust & Savings
Bank at Storm Lake since its organ­
ization, died recently follow ing a
protracted illness. Mr. W itter was
a resident of Storm Lake since 1878,
at which date he entered the furni­
ture and undertaking business.
In addition to his banking and
mercantile interests, he was a prom­
inent builder, and erected four busi­
ness houses in the city of Storm
Lake.
One cannot help doing a good office
when it comes in one’s way.— LeSage.

THE NORTHW ESTERN

January, 1923

89

BANKER

A Prosperous, Happy New Year
Y o u r P a tr o n s W ill A p p re c ia te

A
CLEVELAND
DISCOUNT
CO.
Bond Department
Guaranteed. F irst M o r tg a g e Bonds on Real E state

Safe
The safety of these
securities makes them an
ideal purchase for your
clients. When you sell
t h e m Cleveland Disc o u n t Company First
Mortgage B o n d s you
give them a guaranteed
investment.

R esources
O ve r
F o r t y - t w o Million
Dollars

Dependable
The C leveland D iscount
C om pany is the second
largest com pan y of its k in d
in the U nited States. E very
cent of p rin cipal and in ter­
est in vested is guaranteed
by the gigantic resources of
the com pan y as w ell as by
the real estate held in se­
cu rity for the bond.

E.G.RA1MDALL & Co.
GUARANTEED

F IR ST MORTGAGE BO ND S

IOWA REPRESENTATIVES OF

THE CLEVELAND DISCOUNT COMPANY
STATE OFFICE
O ld Colony Building
Tenth and Grand Ave.
Des Moines, Iowa

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Federal Reserve Bank of St. Louis

CLEVELAND, OHIO

BRANCH
OFFICES
THROUGHOUT
IOWA

90

THE NORTHW ESTERN BANKER

January, 1923

Announcing T w o More Departments—

Bank Stock Exchange and Bank Help Bureau
through

WESSLING SERVICES
(.Featured From Two Angles)
BANK STOCK EXCHANGE
R equests are continually com ing to us from bank­
ers tellin g of their future plans. Some ask that we
find them a location suitable to their desires. Others
w ish to sell.
In order to effectively handle this class of busi­
ness w e have opened a Bank Stock Exchange.
T his departm ent w ill be conducted in an efficient
and confidential manner. Our connections are such
that w e are in a position to cooperate w ith both the
country and city bankers.

BANK HELP BUREAU
There is a constant changing o f plans.
Help
com es and goes. Officers, clerks and stenographers
have their reason for desiring to make a change.
Our aim is to a ssist those who want to get ahead.

WHERE “WESSLING SERVICES” CAN
HELP YOU
B a n k o fficia ls o fte n w a n t an u n d e r stu d y , so m e o n e
w h o h a s a d e te r m in a tio n to m a k e g ood .
T h e y a re
w i l l i n g to p a y th e p r ic e an d offer a fu tu r e , b u t a re
o b lig e d a t tim e s to g e t so m e o n e o u ts id e o f th e ir office
fo rce. H ere is w h e r e “W e s s lin g S e r v ic e s ” w ill co m e
in h an d y.
B e in g c o n s t a n t ly in to u c h w it h b a n k e r s, n o ta t io n s
are m ad e a b o u t th e o u ts t a n d in g o n e s and th e ir a s s i s ­
ta n ts , a lso w h a t t h e y h a v e a c c o m p lish e d . N o d o u b t
y o u co u ld g e t on e o f t h e s e to com e w it h y o u .
(W e
e x p e c t to k n o w IO W A th e sa m e a s w e k n o w th e L y tto n B a n k in g T e rrito ry .
C ity b a n k e r s w ill find i t a d v a n ta g e o u s to u se “W e s s ­
lin g S e r v ic e s ” in g e t t i n g o u ts t a n d in g c o u n tr y b o y s
an d c o u n tr y b a n k e r s w h o are u se to a s s u m in g r e ­
s p o n s ib ility .
C L E R K S W H O A R E A M B IT IO U S TO BECO M E O F ­
F IC E R S :— S im p ly w r it e u s y o u r d e sir e s. W e ca n a s s is t
y o u in m a n y w a y s .
O F F IC IA L S W H O P L A N TO M A K E A C H A N G E :—
P e r h a p s y o u are r u n n in g a b a n k w h e r e th e n a tio n a lit y
o f th e c o m m u n ity is d iffe r e n t th a n y o u a re a n d y o u
r e a liz e y o u are a m isfit.
Or, y o u m ig h t h a v e a d e sir e to ca rry o u t a “b u s in e s s
g e t t i n g ” p la n b u t th e d ir e c to r s d o n ’t se e i t y o u r w a y .
M ayb e so m e o n e h ig h e r up is h o ld in g y o u b ack . In
su ch c a s e s it is w e ll to th in k a b o u t m a k in g a c h a n g e .
W h en y o u P la n A h ea d — P la n to M ove A h ead .
When working out your problems secure “ Wessling Services.”

THE MODERN COUNTRY BANK SERVICE
Just a few months ago th e Modern Country Bank Service was announced.
banks in more than half the counties of Iowa.

Today it is used by

The Service has been placed at Estherville, W ebster City, LeMars, Atlantic, Humboldt, Carroll, Des
Moines, Eagle Grove, Adel, Mason City and numerous other large centers. They find it valuable for
their institutions the same as the banks in the smaller towns.
Ih e Service is based on ID E A S which are practical and inexpensive to carry out.

A ddress D. R. WESSLING, P re sid e n t L y tto n S avings B ank
L Y T T O N , IO W A


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Federal Reserve Bank of St. Louis

January, 1923

THE NO RTH W ESTERN BANKER

Leaves for Chicago Position
Roy Schaefer has resigned as
cashier of the Farmers State Bank
of Sulphur Springs, Iowa, and will
leave to accept a position in Chicago.
H e is succeeded as cashier by E. R.
Norton, formerly of Newell, Iowa.

91

x r u T ’r i'.T : r i ’r n ’ r

E xecutives and Banks

Lime Springs Banker Married
Charles E. Anderson, assistant
cashier of the First National Bank
of Lime Springs, Iowa, and Miss
Grace Viola Jones, of the same city,
were married recently. They will
make their home in Lime Springs.

S u b o rd in ates ca n solve th e
ordinary problems that come
to the successful executive,
but he has won his place
through superior ability to
meet difficult situations.

County Treasurer Elected Cashier
G.
H. Wilke, present treasurer of
Clayton County, Iowa, and just re­
elected for another term, will give up
the office on January 1st next to accept
the position of cashier of the First
National bank at Strawberry Point.
Iowa, succeeding M. F. Harwood.
Mr. W ilke was formerly assistant
cashier of the Elkader State bank.
The filling of this position by Mr.
W ilke makes both banks at Straw­
berry Point in the hands of former
county treasurers, since the position
of cashier in the Strawberry Point
State bank has been filled for the
past tw elve years by W m. F. Reinecke, former county treasurer of
this county.

M an y o f th e th in g s w e do
for our correspondents could
be done by any bank. But
we believe that we have won
their business because they
can rely on us in matters that
might well be labeled, “H an­
dle with Care.”

Bam k.
ers Trust to.
Bank .
C a p ita l $1,000,000.00
6th.andLocust 5ts.,DesMoines

Cor.

First State Re-elects Officers
A t the annual m eeting of stock­
holders of the First State Bank of
Calmar, Iowa, the follow ing offi­
cers were re-elected for the coming
year: President, O. P. Ode; vice
president, A. H. K n u tson ; cashier,
Louis A. D e ss e l; assistant cashier,
W . H. Flaskerud. The board of
directors includes :' O. P. Ode, O. A.
Tenold, A. H. Knutson, A. O
Flaskerud, A. A. Olson, H. J.
Giesen, Albert Shindelar and Louis
A. D essel. The State Bank of Cal­
mar is capitalized at $25,000 and has
surplus of $18,000.

Member federal Reserve Bank.

nrT T -rrnrnrv,

FIRST NATIONAL BANK,
D IR E C T O R S

B. P. SWISHER
Pickett, Swisher & Farwell
R. J. HOXIE
Secretary Waterloo Fruit &
Commission Co.
A. M. PEACE
Vice President
E. E. PEEK
Vice President Waterloo Bldg.
& Loan Association.
H. W. GROUT
Real Estate
C. A. MARSH
President
( j i a r’t‘ro^e’,2 / S 6 S


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Federal Reserve Bank of St. Louis

OR oyer fifty-five years this bank has suc­
cessfully served this community. We offer
the same service to those outside our immediate
locality. Special attention given to accounts of
banks.

F

O F F IC E R S

C. A. MARSH, President
A. M. PLACE, Vice President
WILL A. LANE, Cashier
P. W. EIGHMEY, Assistant Cashier
R. S. WALKER, Assistant Cashier
O. L. MORRIS, Auditor
Total

Resources Over $2,900,000.00.

W a te rlo o . Iow a
D IR E C T O R S

W. W. MARSH
President Iowa Dairy Separa­
tor Co., President Associated
Mfg. Co.
J. T. SULLIVAN
Lawyer.
J. O. TRUMBAUER
Vice President Farmers Loan
and Trust Co.
H. A. MAINE
President H. A. Maine & Co.
WILL A. LANE
Cashier

THE NO RTH W ESTERN BANKER

92

C E N T R A L T R U S T C O M PA N Y
OF DES MOINES
CAPITAL $1,000,00#.#0
SURPLUS $ 735,000.00
Will receive and execute T ru sts of every description, acting as
Executor, Administrator, Guardian and Trustee.
The S e c u r ity afforded by the A m p le C a p ita l of this Company,
the constant supervision of its affairs by competent Directors and
its convenience of Location render its employment for the purposes
named peculiarly advantageous.
The Company buys and sells bonds, warrants, special assessment
certificates, first mortgages and other investment paper.
OFFICERS AND DIRECTORS
SCOTT RAWSON, President
CHAS. Ii. GILCREST, Vice-President
L. M. GRIMES, Vlce-Pres.—T ru sts
TAYLOR GRIMES, Vlce-Pres
Loans
R. E. JACKSON, A uditor-Assistant Sec.
Charles L. Gilcrest
Mark L. Johnson
R. E. Rollins
L. M. Grimes
L. C. K urt*
H. E. Rumsey
Taylor Grimes
Henry S. Nollen
M. Samish
W. C. Harhach
Charles A. R am o n
W. E. Tone
F. W. Hubbell
Scott R a m o n
N. M. Wllchlnskl

m o st fa v o r e d
h o te l
500 rooms
all with
private bath
—

51)eriòan-jpta^a

Sheridan Road at W ilson Avenue , Chicago

T


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Federal Reserve Bank of St. Louis

County A gent to Enter Banking
A. F. Beck, county agricultural
agent of W apello county, Iowa, will
resign from that position January 1
to accept the management of the
farm loan department of the Citi­
zens Savings Bank of Ottumwa. He
will also have charge of a branch of
the Iowa Farm Credit Corporation,
headed by L. A. Andrew, president
of the Citizens Savings Bank and
formerly president of the Iowa
Bankers Association.

Gravity Banker Married
Glen O. Summers, cashier of the
Gravity State Bank, of Gravity,
Iowa, was married recently to Miss
Pauline Battin, of Bloomfield. Mr.
Summers w as formerly a banker at
Cantril, Iowa, and went to Gravity
to succeed Edwin Chandler.

“Bankalow” Now in Use
The Iowa State Savings Bank, of
Burlington, Iowa, has recently
moved into its temporary headquar­
ters in a “Bankalow,” which will be
winter quarters for the bank while
the new banking home is being re­
built to house both First National
and Iowa State Savings Banks.
The “Bankalow,” a description of
which appeared in a recent issue of
the Northwestern Banker, is a two
story frame building. The clerks
will be located on the second floor,
while the the first floor will accom­
modate the officers and the bank­
ing public.

U p to w n
C h ic a g o

H IS new hotel, fronting
on Chicago’s chief bou­
levard and on the main busi­
ness street uptown, is sur­
rounded by one of the rich­
est retail districts of the city.
Land values reach as high as
$8,000 a front foot. Here, in
the North Shore’s business
and social center, are hotel
accommodations that are
not excelled anywhere. Yet
charges are moderate, repre­
senting greatest values in
Chicago.

January, 1923

In the beautiful main restau­
rant and in the famous Nar­
cissus Grill the finest foods
are obtainable at reasonable
prices.
Only 18 minutes from down­
town by elevated express.
Surface lines are a block
away. Motor busses to and
from downtown, through
Lincoln Park, stop at the
door.
$3 a day and up. European
plan.

Salix Banker Dies
Ethan B. Currier, prominent
W oodbury county banker, a director
in the T oy National Bank of Sioux
City, Iowa, and a resident of Salix
for the past fory-five years, died of
pneumonia at Salix. Mr. Currier
was born in Vermont, and came to
Iowa in 1877. Mr. Currier was one
of the partners in the bank of J. C.
Currier & Sons, Salix, Iowa.
W aterloo Banker Married
Elmer M. Lichty, vice president
of the Iowa State Bank of W aterloo,
Iowa, prior to its recent consolida­
tion with the Leavitt & Johnson
National, and also representative in
the Iowa legislature from Blackhawk county, was married recently
to Mrs. Clara E. Miller of W ater­
loo, la.
Accepts Position at Ladora
E. J. Hoepner, formerly book­
keeper for the First National Bank,
Marengo, Iowa, has accepted the
position of bookkeeper for the La­
dora Savings Bank, Ladora, Iowa.

THE NO RTH W ESTERN

January, 1923

BANKER

HTHIS is the remarkable
record of the Rand McNally
Blue Book in the experience of one banker
who has consulted it daily, and to this
individual record can be added similar
recognition fr om bankers all over the
United States.
Honestly revised twice a year, the Blue Book
has maintained undisputed leadership for ac­
curacy and dependability since it was founded
50 years ago.

W hy the Blue Book
Leads the Field
The Blue Book is invaluable in every bank
because
— it speeds up collection service
— it simplifies the routing of items
— it gives the latest statements of condition
of all banks
— it contains an up-to-date list of executive
officers
— it furnishes a correct list of all the corre­
spondents of every bank
— it facilitates the making of the most direct
connections at the least cost
— it has four times the circulation of any
similar publication
— it contains maps of every state in the
country in county outline
■
—it contains a complete showing of all
banks, national, state, savings and trust
companies in the United States as well as
Canadian banks; together with a selected
list of foreign banks and American in­
vestment bankers

R . B R U E B A C H is m anager of th e
tra n s it d ep a rtm en t o i th e M erch an ts
Loan & T ru s t C om pany of Chicago and
directs th e Handling of m ore th a n three
m illion item s a year. H e finds that, th is
big ta sk is g reatly simplified b y th e R an d
M cN ally B lue Book.

M

Banks, like all other lines of business, have undergone sharp readjustments during the past
year, and the January Blue Book now coming off the press will be especially valuable because it
will give in detail the scope of these changes. The latest statements of condition, every change
in executive personnel, every recent merger will be shown.
The Blue Book is sold on subscription only. The edition is limited and we suggest that you
place your order now to make sure of a copy.

Mmm M SN a i x y & C o m p a n y
Largest Publishers of Banking Publications in the World
Dept. B-29


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Federal Reserve Bank of St. Louis

536 S. Clark St.

Chicago, 111.

93

94

T H E N O R T El W E S T E R N B A N K E R

57 Years of E xperience
The First National Bank of Council Bluffs offers to banks
and bankers in the surrounding community a thoroughly
modern and complete banking service. A long experience
reaching over a period of 57 years of successful banking
makes our record absolutely clean. For your Council Bluffs
correspondent—consult with us.

F IR S T N A T IO N A L B A N K
COUNCIL BLUFFS, IOWA
OFFICERS
E. A. Wickham, President
F. F. Everest, Vice President
G. F. Spooner, Cashier
Roy Maxfield, Asst. Cashier
J. S. Watson, Asst. Cashier

We m aintain the largest and best equipped foreign
exchange and steam ship departm ent in the state.
W rite for special rates to bankers. Try our service for foreign
remittances and drafts to all parts of the world.

We Specialize in Remittances to Czechoslovakia.
W e represent all steamship, travel and tour companies, attend to
passports, vises, baggage, and other matters pertaining to travel.
Phone, wire or write.
E. M. SCOTT
President
FRANK FILIP
Cashier

SECURITY

S ayings B ank
Ce d a r R a

p id s

L. H. STRAKA
Manager
Foreign A
Steamship
Dept.

, Io w a

“ Identified with Chicago*s Progress Since 1857”
BOARD OF D IRECTORS
C L A R EN C E A. B U R L E Y ........................................A ttorney and C apitalist
R O B E R T W . C A M P B E L L ............................................. K n ap p & Cam pbell
M ARSH ALL F I E L D ............. M arshall Field, Glore, W ard & Company
E R N E S T A. H A M IL L ...........C hairm an C om Exchange N ational B ank
H A L E H O L D E N . .P re s id e n t Chicago. B urlin g to n & Q uincy R. R . Co.
M ARVIN H U G H IT T . . . .C h airm an Chicago & N o rth-W estern Ry. Co.
EDM UND D. H U L B E R T ....................................................................... P resid en t
The M erchants Loan & T ru s t Company
Illinois T ru s t & Savings B ank
The C om E xchange N ational B ank
CHAU N CEY K E E P ...................................... T ru stee M arshall Field E state
CYRUS H. M cC O R M IC K ...........C h airm an In te rn a tio n a l H arv ester Co.
JO H N J.
M IT C H E L L ..................................................................... C hairm an
T he M erchants Loan & T ru s t Company
Illinois T ru st & Savings B ank
JO H N S. R U N N E L L S ...................................C h airm an P u llm an Company
EDW’ARD L. R Y E R S O N ................ C h airm an Joseph T. Ryerson & Son
JO H N G. S H E D D ...........................P resid en t M arshall F ield & Company
ORSON S M IT H ........................................C hairm an of Advisory C om m ittee
JA M ES P . S O P E R ................................ P resid en t Soper L u m b er Com pany
A L B E R T A. S P R A G U E ..................... C hairm an S prague W a rn e r & Co.

DEPARTMENTS

COMMERCIAL—SA V IN G S--T R U ST --B O N D --FA R M LOAN
FOREIGN EXCHANGE

Capital and Surplus .................................................. $15,000,000

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Federal Reserve Bank of St. Louis

January, 1923

Is N ew Cashier at W ellman
W . A. Anderson, of Nickerson,
Nebraska, has purchased the inter­
ests of H. B. Knight in the Security
Savings Bank of W ellman, Iowa.
H e will move to W ellman to assume
his position as cashier of the Se­
curity Savings. Mr. Knight expects
to go into the banking business at
some later date.
N ew Bank at Bellevue
Plans are rapidly going forward
to accomplish the opening of the
new First National Bank of B elle­
vue, Iowa, to be capitalized at
$75,000. Z. G. Houck, who has been
the prime mover in the proposed
organization, has been named pres­
ident, George Schlatter, vice presi-'
dent, and C. A. Murphy, cashier,
until the annual m eeting of stock­
holders, set for January 2, 1923. D i­
rectors who will serve until that
date includ e: Z. G. Houck, George
Schlatter, C. A. Murphy, George
Kranz, J. C. Dennison, M. W . Moul­
ton, A lex Reed, Eli Cole and George
Zentner.
It is hoped to open the new bank
some time during the month of Jan­
uary.
Grimes Banker Dies
M. H. Thatcher, one of the found­
ers of the Luther Savings Bank, of
Luther, Iowa, and associated with
the organization of the Farmers
Savings Bank of Grimes, died re­
cently at his home in Grimes. Mr.
Thatcher was one of the early
pioneers of Iowa and was also in­
terested in many farming interests.
H is son, O. M. Thatcher, for sev­
eral years cashier of the Luther
Savings Bank, is at present vice
president of the W ebster Co. N a­
tional Bank, also the Savings Bank
of Fort Dodge and lives in that city.
Buy Pattee Interests at Perry
Scott A. Rawson and Taylor Grimes
of Des Moines and J. M. Grimes of
Montezuma have bought the Pattee
interest controlling the First National
Bank of Perry, Iowa, ar.d have taken
possession of the institution.
j. M. Grimes will be president, J.
L. Blake and D. D. McColl will be
vice presidents and B. H. W oods
will continue as cashier.
Mr. Grimes has been connected with
the National Bank at Montezuma of
which he was president for a year or
two, but he is again publishing his
newspaper at Montezuma.
Mr. Rawson and Mr. Taylor Grimes
are officers of the Central Trust Com­
pany of Des Moines.
The First National of Perry is one

Jan u a ry , 1923

THE N O R T H W E S T E R N

of the oldest national banks in central
Iowa. It was founded by D. J. Pattee
more than 40 years ago. A t his death
a large m ajority of the stock passed
to his sons, H. M. and W . H. Pattee.
The form er was seriously injured in
an automobile accident about four
months ago and he has thought since
of retiring from active work in con­
nection with banking. The Pattees are
extensively interested in other hold­
ings in Perry.
The bank has a capital of $50,000
and deposits of about $1,000,000.

Merchants
National
Bank
BURLINGTON, IOWA

Sac County Bankers Elect
T h irty m em bers of the Sac
C ounty B an k ers’ association b an ­
queted at th e P a rk H o tel in Sac
C ity, Iow a, recently, a t w hich tim e
the an nual business m eeting and
election of officers w as held.
C. H . T o w n send of the N em aha
S tate B ank w as elected president
and W . A. S an dburg of the F a rm ­
ers’ Savings B ank of L y tto n was
honored w ith the vice presidency. I.
L. F u ller of the S tate B ank of E arly
w as nam ed secretary and A. J.
Schm itz of th e O debolt Savings
Bank, treasu rer.

Monticello State Bank
T h e M onticello S tate B ank of
M onticello, Iow a, has resources and
liabilities of $2,428,499.02, w ith de­
posits of $1,862,023.73. Officers are:
P resid en t, H e n ry M. C arp en ter;
vice p residents, W illiam S tu h ler and
H . S. R ichardson ; cashier, H alstead
M. C arp e n te r; assistan t cashier, C.
E. F o th erg ill.

Dysart Savings, Dysart, Iowa
T o tal resources of $786,567.03 are
show n by a recent statem en t of con­
dition of the D y sa rt Savings Bank,
D y sart, Iow a. D eposits .are $597,173.59.

Iowa Savings Show Slight Drop
Savings deposits in 60 Iowa banks
on November. 1 totaled $92,407,851,
or 0.5 per cent less than the total one
month previously, according to reports
issued by the Chicago Federal Reserve
Bank. The total, however, is 1.1 per
cent greater than the total on N o­
vember 1, 1921, and 2.3 per cent more
than the average of 1920.
T hroughout the seventh federal re­
serve district continued improvement
is shown in the savings deposits.
D eposits on N ovem ber 1 had in ­
creased considerably over a year ag o ;
gains in Michigan banks have been
particularly marked.
The average account also increased
over October 1, but is again less than

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

95

BANKER

Pià the barsof Indemnity
betwemYou and the Crook

Capital, Surplus and
Profits

A n y attem p t to alter w ith
acid a check or in stru m en t
w ritten on In d e m n ity Safety
or In d e m n ity C heck will in ­
stantly p ro d u ce an irrem ov­
able brown stain in the fibre oj
the paper. Chem icals used in
its secret process of m aking
are a p art of th e substance or
p u lp of th e p a p e r a n d are
im m ediately acted u p o n by
any altering agent.

$204,114.51

I n d e m n it y
S a fe ty P a p e r
T h is absolute protection is
so easy to get th at you .owe
it to yourself and your direc­
tors to specify this paper by
nam e w hen o rd erin g checks
and o th er transferable, nego­
tiable paper.
Remember, this is absolutely
safe safety paper in two grades
—Indemnity Check and Indem­
nity Safety—one slightly tougher
than the other but both basically
the same and giving equal protec­
tion. Six colors to choose from.
L IT H O G R A P H E R S ’
C O -O P E R A T IV E A SSO C IA TIO N
CHARLES CONRADIS

Colorado Building

W ashington, D . C.

Deposits....$1,804,478.51
J. L. EDWARDS__________ President
ALEX M O IR __________________Vice President
F. L. HOUKE__________________Vice President
JAMES MOIR__________________Vice President
G. S. TRACY__________________Vice President
C. L. FULTON_________________Vice President
E. W. WICHHART________ Cashier
C. A. DANIELS____ Assistant Cashier
A. A. WILLEM____ Assistant Cashier
DIRECTORS
James Moir
G. S. Tracy
W. C. Tubbs

Alex Moir
J. L. Waite
J. L. Edwards

We Invite Your Banking
Business

You Will Find
The
N o r th w e s te r n
B anker
a t y o u r service 365 days
of th e y ear.
For over a quarter of a century
the dominant financial journal
of the Northwest.
We welcome an opportunity to
serve you.
M EM BER
F in a n c ia l P u b lis h e r s A s s o c ia tio n
A u d it B u r e a u C ir c u la tio n s

96

TH E N O R T H W E S T E R N

BANKER

TH E U N IT E D STA TE BANK
DES M O IN ES, IOWA
W hy not suggest to your customers, who contemplate
coming to Des Moines, to avail themselves of the
service of this bank.
OFFICERS
Frank D. Jackson, President
V. W. Miller, Vice President
A. C. Nelson, Cashier
I. G. Lucchesi, Asst. Vice President
D. B. Casady, Asst. Cashier
A. E. Cass, Assistant Cashier
DIRECTORS
Frank D. Jackson
George A. Wells
Ernest A. Jackson
V. W. Miller
Carl F. Percival
Fred H. Pease
N. M. Hubbard, Jr.
Carl B. Pray
Leo E. Stevens
Chas. W. Jones
W. C. Ballard
Make This Bank Your Des Moines Correspondent.

Jan u a ry , 1923

a year ago. Last year there was little
change in the amount of savings de­
posits or the average account, while
in 1920 gains were reported. W ith­
drawals were made for real estate and
other investments, for taxes and for
winter expenses.

Plan Increase in Capital
The S cott C ounty Savings B ank
of D avenport, Iow a, plans an in­
crease in capital from $250,000 to
$500,000, a t a special m eeting of the
shareholders. T his in stitu tio n was
organized in 1883 and now has $300,000 surplus and to tal deposits in ex­
cess of six m illion dollars. J. H . H ass
is p re sid e n t; D r. J. W . W atzek and
H . J. Zeuch are vice p resid en ts ;
G ustav S tueben, cash ier; and L eon
H ass and George L. H am an n , as­
sista n t cashiers.

Central State to Liquidate

The Cedar Rapids National
Bank
W ith Capital, Surplus and Profits of $ 9 5 0 ,0 0 0 .0 0
and Resources $ 1 5 ,0 0 0 ,0 0 0 .0 0

Invites N ew Business
©IRBCT

O F F IC E R S

Ralph Van Vechten, Pres.
Glenn M. Averill, V. Pres.
Geo. B. Douglas, V. Pres.
Martin Newcomer, V. Pres.
Karl H. Rehnberg, V. Pres.
Geo. P. Miller, V. Pres.

Chas. C. Kunins, Cashier
Anna R. Smouse, A. Cash.
Bertha M. Wolf, A. Cash.
Peter Bailey, Chief Clerk
Geo. W. Swab,
Mgr. Savings Dept.

The

C ity N a tio n a l B ank
o f C lin to n , Iow a

C apital, Surplus and Profits $ 600,000.00
D e p o s i t s .............................. 5,800,000.00
OFFICERS
ALFRED G. SMITH, Chairman
HALLECK W. SEAMAN, V ice P resident
GEORGE L. CURTIS, V ice P resid en t
JOHN H. N ISSE N , A ssista n t Cashier

ALFRED C. SMITH, P resident
AUGUST H. KERSTING, V ice. Pres
OLIVER P. PETTY, Cashier
H ENRY G. KRAMER, A sst. Cash.

Accounts of Banks, Corporations and Individuals received on most favorable
terms. Correspondence Invited.


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

D ue to several losses the sto ck ­
holders of the C entral S tate B ank,
of Council Bluffs, have decided to
discontinue business.
The re­
m ainder of its affairs will be handled
th ro u g h th e C om m ercial N ational
B ank, of Council Bluffs, Iow a.

Should Join Federal Reserve
Desirability of encouraging banks in
the agricultural sections to enter the
federal reserve system was empha­
sized by Eugene Meyer, Jr., m anag­
ing director of the war finance corpo­
ration at hearings on rural credits leg­
islation before the senate committee on
banking and currency at W ashington,
D. C. M r. Meyer explained the pro­
visions of the Capper bill, which he
had a hand in drafting, one of the fea­
tures of which is a section which per­
mits banks in the smaller cities to
come into the federal reserve system
with less capital than now required,
providing certain guaranties are given.
“A great many banks might, with
advantage to the agricultural situation,
belong to the federal reserve system,”
said Mr. Meyer. “ Only 1,365 out of
over 11,000 eligible banks outside of
the national banks, which automatical-

After-Dinner Scraps
A collection of stories, poems,
serm onettes, quotations, etc., for
use by public speakers as “fillers”
and “padding.” Som e good stuff.
Some light and chaffy. S'ome new
thought. Som e platitudes. Many
pleased custom ers. Postpaid (U.
S.) for $1.00 hill. Money back w ith
a grin if it doesn’t suit.
BLO O M FIELD

PU B LISH IN G

Bloomf ield,

Iowa

CO.

Jan u a ry , 1923

TH E N O R T H W E S T E R N

ly became members, now are in the
federal reserve system. There are
9,640 banks eligible to the system
which do not belong. In addition to
that there are about 10,000 banks in
the U nited States which are not eli­
gible because of insufficient capital.
“I believe in the consideration of
rural credits it would be of prime im­
portance to add to the federal reserve
system as many banks as can be in­
duced to join.”

Buy Kovar Interests at Boyer
H . B. Hansen, of Boyer, and his
son, W . H . Hansen, have purchased
the K ovar interests in the Farm ers
and M erchants Savings Bank at
Boyer, Iowa, and are now in charge
with the son, W . H., as cashier. John
Kovar, the retiring cashier, will remain
with the institution until A pril first,
at which time he retires. H e also dis­
poses of his residence property to the
Hansens. M r. K ovar went to Boyer
from Searsboro, and organized the
banking institution in July, 1916. The
bank was capitalized for $10,000, with
a surplus of $7,500. Stock was sold
in the concern to the business men and
farm ers of Boyer and near Boyer, and
the bank has been a growing institu­
tion ever since it was started. A new
brick building was erected and the
bank equipped with all modern equip­
ment fo r the transacting of business.
H . B. H ansen has been m anager of
the lumber business in Boyer for many
years, and his son, W . H., has been
connected with the bank for some time,
and is thoroughly familiar with its
affairs.
The new officers of the bank a r e :
President, H . B. Hansen.
Vice President, George Cowlham.
Second Vice President, John Pithan.
Cashier, W . H . Hansen.
Directors, H enry W ulf, James
M aynard.

N E of the initial steps in the
making of Dubuque, Iowa, into
a Gibraltar of financial centers,
has been taken in the proposed merger
of three banks of the city into one
large institution, to be known as the
Consolidated National Bank of Com­
merce. The banks involved in the
consolidation are the Dubuque N a­
tional, the Second National and the
Dubuque Savings Bank. J. K. Deming, president of the Second National
and of the Dubuque Savings, will be
president of the merged bank. All de­
tails of the transaction have been

O

Gets Leave of Absence

Is Elected Cashier
N.
V. K uhl, w ho has been cashier
of th e D efiance S avings B ank of D e­
fiance, Iow a, has resigned from th a t
position and is succeeded by E. L.
P en n isto n . M r. P en n isto n w as for­
m erly a ssistan t cashier.


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Federal Reserve Bank of St. Louis

97

Three Dubuque Banks in Big
Consolidation Plan

T om B reheny, cashier of th e A t­
lantic B ank, A tlantic, Iow a, has
been tak in g a re st from banking
duties, for a period of th ree or four
w eeks. T h e leave of absence was
g ra n te d on account of illness.

The man who has no enemies has
no following.— P iatt.

BANKER

agreed upon by the three directorates,
and only the sanction of the comp­
troller of currency is awaited to ac­
complish the merger.
Combined under a charter as a na­
tional bank, the new institution will
have a capital of $500,000 and $100,000 surplus, with deposits in excess
of $4,000,000. Assets will total more
than $5,000,000. It is planned to open
the new bank during the first week in
January in the present home of the
Second National Bank building. A l­
terations being made will make it one
of the finest buildings in the state.

Specialized Service to Banks

Bill-of-Lading Drafts
/^ U R

C o lle c tio n D e p a rtm e n t specializes in

th e c o lle c tio n o f drafts w ith b ills-o f-lad in g
a tta c h e d , c o v erin g c o m m e rc ia l tran sactio n s, and
has c o m p le te facilities fo r tra c in g and fo llo w in g
s h ip m e n ts in tran sit. O u r arriv al n o tic e to th e
co n sig n ee fre q u e n tly is in advance o f n o tifica­
tio n b y th e r a ilr o a d c o m p a n y , r e s u ltin g in
p ro m p t re tu rn s to o u r custom ers.
Full details o f our se r v ic e s to corresp on d en t
banks are g iv e n in our b o o k let, “ Specialized
S e r v ic e to B a n k s,” w h ic h w e shall be pleased
to sen d u p on request.

Guaranty Trust Company
of New York

98

TH E N O R T H W E S T E R N

According to present arrangements,
the following officers will have charge
of the consolidated b an k : President,
J. K. Deming; secretary, Herm an
E sch en ; vice presidents, George W.
Myers and Jam es M. B urch; cashier,
Jos. W . M eyer; assistant cashiers,
Messrs. W agner, Melchoir, W harton,
Sullivan and Behnke.
Mr. Deming, the president, has
served as president of the Second N a­
tional and of the Dubuque Savings for
a number of years.
Mr. George W . Myers has been
president of the Dubuque National.
Mr. Burch is president of the Farley
& Loetscher Mfg. Co.
Jos. W . Meyer, cashier of the new
bank, is well known to Iowa bankers,
having served on several important
committees of the Iowa Bankers Asso­
ciation. H e is at present chairman of
the Educational Committee of the state
association and president of the D u­
buque County Bankers Association.

Chase National History
T h e Chase N ational B ank of the
C ity of N ew Y ork has issued a very
attra ctiv e booklet celebrating the
forty-fifth an n iv ersary of the found­
ing of the bank on S eptem ber 12,
1877. A lthough still one of the
yo u n g er banks of the U nited S tates
in p o in t of years, it is the second
larg est national bank in the country.
T h e bank w as originally capital­
ized a t $300,(XX). O n Jan u a ry 2,
1878, th ree m onths after the open­
ing, the bank had deposits of $628,~
625 and the undivided profits ac­
counts show ed $1438. T oday the
Chase has a capital of $20,000,000
w ith su rplus and profits of $21,787,000, and deposits of $434,107,000.
T h e official stafif is now fifty, w ith a
clerical force of 1280.

BANKER

of the bank. A t the left of the en­
trance will be a space enclosed w ith
low railing w hich will be devoted to
the use of the officials of the in sti­
tution, and opening from th a t on the
east will be a private consultation
room for the use of the officials.
T h ree tellers’ cages will be a r­
ranged on the w est of the officials’
departm ent, and w est of them will
be the bookkeeping departm ent. On
the n o rth of the lobby will be p ri­
v ate room s for the use of custom ers,
w ith the exception of one room
w hich will be used exclusively by
B. F. F ast, president of the bank.
T here will be a m ezzanine floor
over the v au lts a t th e w est end of
the room , and on this floor will be
located the d irec to rs’ room and a
cu sto m ers’ m eeting room.
Officers of the F irst N ational are:
P resident, B. F. F a s t; vice p res­

J . K . D E M IN G
P r e s id e n t

Jan u ary , 1923

ident, D. E. E u c a s ; cashier, F. E.
S hane; a ssistan t cashier, L. E.
G underm an. T his bank is cap ital­
ized at $50,000 and has a sim ilar
surplus. Mr. Lom as, vice president,
and M r. Shane, cashier, are the ac­
tive officers.

Advises Bankers to Heed
Commandments
“ Scrap all law s and follow the ten
com m andm ents” w as the advice
handed out a t D etro it recently in an
address before the D etro it B ankers
club, by form er V ice P resid en t
T hom as R. M arshall.
“If I had m y w ay,” said M arshall,
“I w ould repeal all the law s on the
sta tu te book and re-enact, in th eir
place, the ten com m andm ents and the
golden rule. I w ould then p u t the
issue up to the A m erican people to
live accordingly.”

JA M E S M . B U R C H
V ic e - P r e s id e n t

H ER M A N N ESCH EN
C a sh ie r

Combined
Resources

Reserve A gents for
N ational Banks
U nited S tates
Depositary

$3,000,000.00

The SECOND NATIONAL BANK and
DUBUQUE SAVINGS BANK
Organized 1876

DUBUQUE, IOWA
DIRECTORS

J . K . D E M IN G
P r e s id e n t
C H A S. H . BR A D L E Y
B r a d le y B r o s.

H E R M A N N ESCH EN
C a sh ie r
J. J. R O SH EK
R o s h e k B r o s . C o.
JA M E S M . B U RC H
V . P . F a r le y & L o e ts c h e r
M fg . C o.

G E O . W . K IE S E L
A tto r n e y
G E O R G E M cL E A N
P r e s . K e y C it y G a s C o .

New Building at Villisca
P lan s have been practically com ­
pleted for the new F irs t N ational
bank building at V illisca, Iowa,
w hich is to be erected durin g the
com ing sp rin g and sum m er on the
w est side of the public square. T he
building and its equipm ent will cost
approxim ately $45,000.
T h e new stru c tu re will be 40 by
65 feet in size, one story high w ith
a basem ent, and will be bu ilt of
brick, w ith Bedford stone front. It
will have a w hite m arble floor,
m arble co u n ter fronts, and m arble
side w alls fifty-four inches high. A
vapor h eatin g p lan t will probably be
installed.
T h e entrance to th e building will
open into th e lobby w hich will oc­
cupy the central space on the entire
floor, on eith er side of w hich will
be arran g ed the various d epartm ents

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

IO W A ST A T E T R A V E L IN G
M E N ’S A S S O C I A T I O N
THOSE ELIGIBLE TO MEMBERSHIP ARE:
all who are over 18 and not more than 55 years of age,
who travel for business purposes any portion of the year
in addition to their other duties.
all men who travel and are engaged in bu sin ess the duties
of w hich are not more hazardous than those of a traveling
salesm an.
This A ssociation Offers:
A ccident Insurance at actual cost
— It has never exceeded $9.00 a
year.
many bankers are m em bers of th is association,
have not joined, send for an application now.

If you

H. E. R E X , Sec'y and Treas.
Fleming Building

DES MOINES, IOWA

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

99

Bankers to Talk in Schools
T alk s on b anking and elem en­
tary econom ics are to be given in
the g rad e and high schools in Des
Moines by m em bers of the Des
Moines ch ap ter of the A m erican In ­
stitute of B anking, it w as announced
recently.
T h e plan was prepared by the
com m ittee on public education of
the A m erican B ankers association
of w hich B lanchard B. V orse of the
B ankers T ru s t com pany is the Des
Moines
rep resentative.
O utline
sketches of ap p ro p riate addresses
have been prep ared by the com m it­

tee.

“ The Bank of Stability and Progress**
O F F IC E R S
G e o . B . M i ll e r

C h airm an o f th e
B oard
R . O. H u t c h i s o n

P r e s id e n t
A . E . G le n n y

V ic e P r e s id e n t
Ja m e s Loonan

V ice P r e s id e n t
C h a r l e s W . K n o o ii

F rom the hour this bank sw ings back its doors
for business in the m orning, until closing tim e—
this organization of experienced bankers are at
w ork serving the com m ercial banking in terests of
the su rro u n d in g com m unity.
If you are seeking to im prove y o u r service
th rough a desirable bank connection you should
com m unicate w ith this bank at once.

C a sh ier

M r. V orse said the school au ­
th o rities are w illing to give facili­
ties for the addresses to be m ade.
A rran g em en ts are now being m ade
with G ran t A nderson, chairm an of
the d eb atin g and public speaking
branch of the ban k in g in stitu te to
assign m em bers to th e w ork.
The addresses will deal w ith bank
functions, and will explain the uses
of checks and drafts, and tell how
credit is created and em ployed.
There will also be talks on in v est­
ments. In tern atio n al financial rela­
tions will be touched on.

Charter Oak Banker Dies
Charles Robertson, 72 years old,
vice president of the F irst National
bank, of C harter Oak, Iowa, and life­
time resident of Iowa, died at his
home in Sioux City, Iowa, of chronic
neuritis. Mr. Robertson had resided
in Sioux City about two years.
Born in Scotland, December 14,
1850, Mr. Robertson moved to Des
Moines when he was a boy. H e later
moved to a farm near C harter Oak,
where he resided for nearly 45 years.
From there he moved to Charter Oak
and became active in banking affairs.
H e was well known throughout the
Charter Oak territory and was a mem­
ber of the Odd Fellows Lodge. He
also was well known among Sioux
City bankers.

E . A . S c h a e fe r

A s s t. C a sh ier
L i l a M a r c h a in

Blackhawk National Bank
W aterloo, Iowa

A u d ito r

The best evi­
dence of our ex­
cellent
banking
service is o u r
growing list of
corres p o n d e n t
banks. Here you
will find an insti­
tution
sincerely
anxious to serve
you.

The Muscatine State Bank has been serving banks and bankers for
over half a century.

M U SC A TIN E S T A T E BANK

American
Commercial and
Savings Bank

Speaks Before W omen’s Club
F rank N. W ard, of the Iowa Loan
and T ru st Company, spoke before the
departm ent of women’s affairs of the
Chamber of Commerce recently at
Hotel Savery, Des Moines. H is sub­
ject was “Banking Investm ents.” The
parliam entary law class of the depart­
ment met at 7 o’clock.

M U S C A T IN E
IO W A

OF

DAVENPORT, IOWA
C a p ital

S t o c k ................$

700,000.00

U n d iv id e d pro fits..........

S u r p lu s

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

700,000.00

D e p o s i t s ........................... 15,030,000.00

439,000.00

Appointed Registrar

O F F IC E R S

T h e M echanics & M etals N ational
B ank of th e C ity of N ew Y ork has
been appointed R eg istrar in N ew
Y ork for the new issue of P referred
A stock of the N ash M otors Com ­
pany.

E D . K A U F M A N N , P r e s id e n t
H. P. O ETZM ANN, C a sh ier
R A Y N Y E M A S T E R , V ic e P r e s id e n t
F . C. K R O E G E R , A s s is t a n t C a sh ier
F . A. JO H NSO N, A s s is t a n t C a sh ier


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Federal Reserve Bank of St. Louis

Our adequate equipment and exceptional facilities for handling busi­
ness in every department of banking are at your service.

100

TH E NOR T H W E S T E R N

BANKER

LONDON JOINT CITY AND

MIDLAND BANK LIMITED
CHAIRMAN:

The Right Hon. R. McKENNA
JOINT MANAGING DIRECTORS:
F R E D E R IC K

HYDE

EDGAR W

S u b s c r ib e d C a p it a l
P a id - u p C a p it a l R e se rv e F u n d D e p o s its
HEAD

O F F IC E :

OVER

- £ 3 8 ,1 1 7 ,1 0 3
- 1 0 ,8 6 0 ,8 5 2
- 1 0 ,8 6 0 ,8 5 2
- 368 ,2 3 0 ,8 3 1

(June 30th , 1922)
5,

1 ,6 0 0

THREADNEEDLE

O F F IC E S I N

W OO LLEY

STR EET,

ENG LAND

AND

LONDON,

E .C . 2

W ALES

OVERSEAS BRANCH: 6 5 & 6 6 , OLD BROAD STREET, LONDON, E .C .2
A tla n tic O ffic e s :

“

A q u ita n ia ”

“ B e r e n g a r ia ”

“ M a u r e ta n ia ”

Jan u ary , 1923

F arm ers & T ra d ers Savings
T o tal resources and liabilities of
the F arm ers & T rad ers Savings
B ank of H illsboro, Iow a, according
to a recent statem en t of conditions,
are $240,885.06. W illiam A. T ad e is
president and H . D. T ade, cashier.
C alhoun C ounty S tate, M anson
R esources and liabilities of the
C alhoun C ounty S tate B ank of
M anson, Iow a, according to a re­
cent statem en t of condition, am ount
to $757,511.25. D eposits are $539,943.70. Officers of this bank a r e :
P resid en t, Chas. E. B ale; vice p re s­
ident, E. H . R ic h ; cashier, W . T.
R ie s ; a ssistan t cashier, C. I. Jackson.

A F F IL IA T IO N S :

BELFAST BANKING CO. LTD.
O V E R 110 O F F I C E S IN I R E L A N D

THE CLYDESDALE BANK LTD.
O V E R 170 O F F I C E S I N S C O T L A N D

THE LONDON CITY & MIDLAND EXECUTOR & TRUSTEE CO. LTD.

For

FIFTY

YEARS

*i45¡«íí SilSiu

the “Valley” has stood for sound, con­
servative banking in this com m unity.

" .. ..

V alley N ational Bank

h

N . ...

h»!i»a

D on’t you w ant to do business w ith this
kind of a bank?

AND

Valley Savings Bank
D E S M O I N E S , IO W A
E sta b lis h e d 1872

Combined Capital and Surplus
$ 9 5 0 ,0 0 0 .0 0

R. A. CRAWFORD
P r e s id e n t

C. T. COLE. J r .
V ic e -P r e sid e n t

JOHN H. GINSBERG
A sst. C a sh ier

D. S . CHAMBERLAIN
V ic e -P r e sid e n t

W. E. BARRETT
C a sh ie r

C. M. CORNWELL
A sst. C a sh ier

New B ank a t Sheffield
A rticles of incorporation have
been filed w ith the Iow a state b an k ­
ing d ep artm en t for the organization
of the new F irst S tate B ank at
Sheffield, Iow a. T h e new bank is
being planned to open about the
first of Jan u ary .
R euben G. W olf and F. D. W il­
liam s are to be p resident and cashier
of the new in stitu tio n . T h e bank
will be capitalized a t $40,000 and
will have an initial surp lu s of $10,000.
Mr. W olf is a g ra d u ate of G rin­
ned college and w as assistan t
cashier of the C itizens N ational
B ank at H am pton, Iow a, before the
w orld w ar. Since the w ar he has
been engaged in federal tax service.
Mr. W illiam s is likew ise a H a m p ­
to n m an w here he spent five years
as a ssistan t cashier of the H am p to n
Savings B ank. H e is a G rinned
college m an also and took th e b an k ­
ing course a t the S tate U niv ersity
of Iow a. M r. W illiam s served in
the U nited S tates N avy for tw o
y ears d u rin g w hich tim e he w as p ro ­
m oted to the rank of ensign.
K. H . W eltn er, of A llison, is to
be a ssistan t cashier and D. R. Edginton and George F. Stall, vice
presidents.
Des M oines B uilding A ctiv ity
T h e year 1922 will go dow n in
D es M oines annals as th e tim e of
g re ater building activity th an any
sim ilar period in the h isto ry of the
city to date.
T h e total value of the co n stru c­
tion w ork for the year ending D e­
cem ber 31, 1922, will reach nearly
$ 12,000 ,000 .
T h u s far 1,850 building perm its
have been taken out as ag ain st 1,348
for th e entire y ear of 1921. T h e av ­
erage value of each building p rojects


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Federal Reserve Bank of St. Louis

Jan u a ry , 1923

TH E N O R T H W E S T E R N

ru n s m uch higher, how ever, city
records show.
A m ong th e m ajor projects for
w hich building perm its w ere taken
in the m onth of N ovem ber a re :

BU Y YO U R FURS A T
K U H L M A N ’S

Equitable building .......
$1,500,000
Polk County hospital .............
175,000
1,000,000
R oosevelt High school .......
L incoln High school ..................
750,000
L ongfellow school (addition) ....
50,000
W allace school (ad d ition )............................. 80,000
Elm wood school (ad d ition ).... .
80,000
A m o n g th e la r g e r b u ild in g s fo r
w h ic h p e r m its w e r e ta k e n o u t p r e ­
v io u s to N o v e m b e r 1 a r e :
L iberty building ................................$800,000
Insurance exchange ..........
600,000
Todd & K raft building...... .............. 60,000
Commercial apartm ents .........
50,000
K eith Furnace com pany................ 50,000
W om an’s club building.................. 190,000
W estern Life building...................... 50,000
W akonda clubhouse ......................... 125,000
St. A ugustine’s church.................... 100,000
D es M oines Gas Co. holder............ 250,000
N eal Brady apartm ents ................ 100,000
Des M oines Imp. a p a rtm en t........... 225,000
N ew Prine apartm ents .................... 75,000
Crull apartm ents ............................... 75,000
W etherell apartm ents .................... 75,000
Commodore apartm ents ................ 200,000
Eddy apartm ents .............
230,000

M ore b u ilding has been u n d e r­
taken in Des M oines than in any city
of com parable size in the U nited
States.
C om plete
building
statistics
th ro u g h th e m onth of O ctober, as
published in the latest num ber of
the A m erican C ontractor, show Des
M oines in O ctober leading the score
of cities of sim ilar size and charac­
teristics.
F ollow ing is a com parison show ­
ing D es M oines building activity
for O cto b er and the activ ity in sim i­
lar cities :
City
Des Moines .....
Portland ............
San Diego .........
St. Paul ..............
H ouston ............
Long Beach .....
R ochester ..........
Richmond .........
L ouisville ..........
Grand Rapids ..
D enver ................
Omaha ................
D ayton .................
N ew H aven .....
Fort W ayne ......
South Bend ___
Pasadena ............
Sacram ento .......
N ew Orleans ....

October
Valuation
............ $1,626,950
........ .. 1,534,005
..... ..
1,501,510
............. 1,352,121
............ 1,123,276
............. 1,248,801
............. 1,454,975
.............
854,925
.......... .
744,30(1
............. 715,560
___ __ 1,484,500
..... ......
698,525
............ 521,295
............
830,702
..... ...... 1,383,445
............ 565,045
........... 1,297,250'
............ 1,378,486
_____ 1,248,725

Burt Banker Dies
L. C. Smith, prominent business
man of Kossuth county, and vice presi­
dent of the First National Bark, of
Burt, Iowa, died recently following a
stroke of paralysis. Mr. Smith was a
pioneer business man, keenly interested
in politics and well known in that sec­
tion of the state.

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

101

BANKER

and Save 25 per cent
K u h lm an ’s annual clearance sale sta rts
D ecem ber 18th, and every garm en t will be
reduced 25%.
K uhlm an m akes furs for m ost of the lead­
ing bankers of the state, so Mr. B anker,
buy your furs at K u h lm an ’s, w here you will
be assured of style, quality and w o rk m an ­
ship.

KARL A. KUHLMAN
T H E L E A D IN G F U R R IE R — S ty le , Q u a l it y a n d I n d i v i d u a l i t y

912 W alnut St.

DES MOINES

Phone W alnut 280

O R E N D E R a c o n stru c tiv e an d s a tisfa c to ry
service of d istin c tiv e q u a lity an d v alue, has
alw ays been th e p rev ailin g ideal of th e F irs t
N a tio n a l B an k .
T h is pow erful in s titu tio n s s u p e rs tru c tu re of effici­
en cy an d service is b u ilt upon excellent o rg an iz atio n ,
co m p lete e q u ip m en t, m o d ern facilities an d large
resources.
v
E n te rin g in to a new era of b igger an d b e tte r b u si­
ness, th e re n ev er was a b e tte r tim e for b a n k s and
b an k ers, who are c o n te m p la tin g a change in th e ir
b a n k in g co nnections, to estab lish relatio n s w ith th is
large b a n k — d o m in a n t in th e G re a t C e n tra l W est.

It is a pleasure to answer letters of inquiry

B R O A D W A Y — LO C U S T — O L I V E

[L A R G E S T N A T IO N A L B A N K W E S T O F T H E M IS S IS S IP P I

102


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Federal Reserve Bank of St. Louis

TH E N O R T H W E S T E R N

BANKER

Jan u ary , 1923

Jan u a ry , 1923

TH E N O R T H W E S T E R N

103

BANKER

Death Summons J. F. Dow
John F. Dow, prominent business
man of Davenport, Iowa, president of
the Davenport Savings Bank and of
the Davenport Elevator Company, and
recently elected chairman of the board
of directors of the newly formed
Union-Davenport T ru st and Savings
Bank, died at his home in that city
following a long illness. H ’s death
marks the passing of one of Iow a’s
most loved bankers.
Mr. Dow had been a director in the
Davenport Savings Bank for more

Leavitt & Johnson National Bank
1856-1923

T h is bank is big enough
to serve you, but not too
big to appreciate your
account.

O ldest Bank in
W aterloo, Iowa
and V icin ity

IRA RODAMAR, President
C. E. PICKETT, Vice-President
J. O. TRUMBAUER, Vice-President
FRED H. WRAY, Cashier

First National Bank
and

Iowa State Savings Bank
BURLINGTON, IOWA
Miiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiimiii

Combined Resources Over $9,500,000
uiiimiiiimiiiiiiiiMimiiiiiiiiiiimmiiH

JO H N F. DOW

than thirty-five years, and in point of
service was Davenport’s oldest banker.
He succeeded W illiam Schmidt as
president in 1908.
M r. Dow was born in Illinois and
came to Davenport while still a youth.
H e entered the grain business under
the tutelage of his father, who was
senior member of the firm of Dow,
Gilman & Hancock.
O tto Hill, vice president of the new
Union-Davenport T ru st and Savings
Bank, speaking of Mr. Dow’s part in
the history of the Davenport Savings
Bank, describes it as follows:
“Mr. Dow very beautifully perpet­
uated in our institution the happy
memory of the original founders of
the bank. H e knew all of its depos­
itors and its customers and they were
all his friends. The wonderful suc­
cess of the Davenport Savings Bank
is probably due more to his influence
than that of any other man who has
ever guided its affairs.”
The wicked are always ungrateful.
— Cervantes.

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

E quipped to handle business of banks and
bankers in Southeastern Iowa.
«iiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiMitimiiim

C O R R E S P O N D E N C E

S O L I C I T E D

THE MERCHANTS
NATIO NAL BANK
CEDAR RAPIDS, IOWA

R esou rces $ 1 6 ,0 0 0 ,0 0 0 .0 0
OFFICERS
John T. Hamilton, Chairman
J. M. Dinwiddie, President
James E. Hamilton, V. P.
P. C. Frick, V. P.
Robert Palmer, V. P.
Robert S. Sinclair, V. P.
Edwin H. Furrow, V. P.
H. N. Boyson, V. P.
Roy C. Folsom, V. P.
Mark J. Myers, V. P. & Cash.
Fred A. Groeltz, Asst. Cash.
S. E. Coquillette, Asst. Cash.
E. B. Zbanek, Asst. Cash.

A live institution offering superior equipment
and facilities for the handling of bank accounts.

104

TH E

N O R T H W E S T E R N

BANKER

Jan u ary , 1923

Hold Corn Contest

W H E R E BUSINESS
CONCENTRATES
S't. Louis, the gatew ay and clearing house of
a great fertile em pire that is particularly
her own, is entering into a new era of
better business.
Out-of-town banks w ill need now, more than
ever, accurate and rapid hanking service
in such a trade center.
The N ational Bank of Commerce in St. Louis,
w ith sixty-five years’ experience; and
capital, surplus and profits of over $15,000,000, can b est serve your needs for a
St. Louis banking connection.

in SA IN T LOUIS
JOHN

G. L O N S D A L E , P r e sid e n t

AS S IO U X C IT Y ’S
O L D E S T B A N K in
continuous existence
and under the same
m anagem ent, we in­
vite your business.

E C U R IT V
1 1

N A T IO N A L B A N K

SIOUX CITY, IOWA

FIRST N A T IO N A L BANK
SPIRIT LAKE, IOWA

CAPITAL
SURPLUS AND PROFITS

$ 50 , 000.00
45 , 000.00

Whatever may be your business in Spirit Lake, the First National
Bank meets the requirements of those desiring complete banking serv­
ice, and invites your patronage on that basis.
C . E . N A R E Y , Presid en t

Financial Investigations

O F F IC E R S
J . H . R O Z E M A , C ash ie r

Audits, Cost and Accounting Systems

Auto Phone 9588

WM. GUTHRIE
323-5 Davidson Building

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Federal Reserve Bank of St. Louis

Certified Public Accountant

Sioux City, Iowa

The Citizens National Bank, of
Hampton, Iowa, recently put on their
third annual corn show, which has be­
come an im portant event among the
farm ers of the community. Nearly
one hundred entries were received and
J. H . Faw cett, of Sheffield, was the
prize winner. H. S. Churchill, head
of the crops and soils departm ent of
the extension division, Iowa State Col­
lege, Ames, judged the contest and
gave a talk on soil improvement fol­
lowing the announcement of the win­
ners.

Dunlap Banker Dies
E. H . B arrett, well-known merchant
and president of the Citizens State
Bank, of Dunlap, Iowa, died of apo­
plexy in Omaha, Nebraska. Mr. B ar­
rett had made his home in Omaha
since 1914, although he spent the early
part of his life in Dunlap. M. J. B ar­
rett, a brother, will be elected presi­
dent at the annual meeting in January.
To Represent W m. L. Ross & Co.
R. E. Gamble has tak en over the
states of Iow a and Illinois for W m .
L. R oss & C om pany, in vestm ent
bankers of Chicago. T h is com pany
has recently placed a bond issue of
one m illion, tw o hundred dollars of
the P la n ters R ealty C om pany of St.
Louis. T h is financing is the resu lt
of the conversion of the P la n ters
H otel C om pany into an office b u ild ­
ing to take care of the rapidly in­
creasing dem and for office space on
L a Salle street, in St. Louis. T h e
ground floor is to be occupied by a
large St. L ouis bank.
M r. Gamble has a w ide ac q u ain t­
ance in Iow a, bu ilt up th ro u g h his
connections w ith various large
banks and investm ent houses of the
m iddle w est. H e began his banking
career as a solicitor for the N a­
tional B ank of Com merce, St. L ouis,
and later spent seven y ears as a
bank account solicitor for the D ro v ­
ers N ational B ank of Chicago.
P rio r to the w ar, Mr. Gamble took
over N o rth and S outh D akota, W is ­
consin and so u th ern M innesota for
the N ational C ity com pany of New
York. A fter the w ar he becam e con­
nected w ith Paine, W eb b er & Com ­
pany.
1923 Needs Workers
National prosperity can result only
from the intelligent distribution of
work and equitable distribution of the
rewards of work among laborer and
employer, said John H . Puelicher,
president of the American Bankers
Association, in an address recently at
the Hotel A stor in New Y ork before
the Bankers’ Forum , New York

Jan u a ry , 1923

TH E N O R T H W E STERN

Chapter, American Institute of Bank­
ing, the educational branch of the
Am erican Bankers Association.
“T hat is not prosperity which does
not include the wellbeing of all w ork­
ers,” said Mr. Puelicher. “That is
not prosperity which does not give the
laborer his full wage, nor the employer
his full value. T hat is not prosperity
which fails equitably to compensate
the tiller of the soil, which rewards
speculation rather than production.
T hat is not prosperity which denies
the incentive of ju st rew ard to each
contributor in the degree of his con­
tribution, which forgets the educa­
tional and cultural needs of all the
people.
“National prosperity can result only
from the intelligent distribution of the
nation’s work, and the equitable dis­
tribution of the w ork’s rewards. These
rew ards m ust go in due proportion to
labor, to capital, to talent, to initiative.
This means a greater—yes, an almost
perfect economic understanding.
“A nd it is here that I come to the
public work of the banker—the work
that is to bring him his fullest devel­
opment, his highest reward. In his
business field he provides for himself
and his family. If he wisely culti­
vates that field, he aids in the business
development of his community and his
growth is correspondingly great.
“H is activities are at the very cen­
ter of our economic life. His services
are rendered to every element of our
■economic existence. Sound banking
policies discourage speculation, en­
courage balanced production and bal­
anced rewards for production.
“The banker is no less interested in
the success of the laborer and the
farm er than in the success of the m er­
chant and the m anufacturer. Each
contributes to the field of his endeavor,
some bringing deposits, others requir­
ing loans, and only can he prosper as
many prosper.
“O ur commercial life is based on
credit— that is, on character, and ca­
pacity. O ur industrial life is based on
production, underlying which are char­
acter and capacity. The banker knows
that a nation stands high as stands
high its men and their products. He
knows that the homes of a nation are
happy as their owners are industrious,
as they put character and capacity into
their work. H e knows that a nation
is but an aggregation of homes—that
it is prosperous and happy as those
homes are prosperous and happy—that
it grows in strength and character as
happy homes give forth sons and
daughters of strength and character—
and as its economic adjustm ents ap­
proach justice and character.”

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Federal Reserve Bank of St. Louis

105

BANKER

63 Y e a r s o f Service
Based on foundations as stead fast as the everlasting h ills— is the
reputation that the Equitable Life A ssurance has gained in the
field of Insurance. Sixty-three years in partnership w ith its policy­
holders w ith a very low net cost along with the h igh est degree of
service is a record w ell worth w hile to its agen ts and policy­
holders.
J
This, coupled w ith the undisputed integrity of the company and the
instantaneous service in paying death claim s, m akes it a very
desirable, as w ell as easy insurance to sell.
W rite

ROY

H. HEARTM AN

Iowa State A gency Manager

The Equitable Life Assurance Society
of the U. S. A.
S u ite 800, Old C olony Bldg.

10th and G rand Ave.

D es M oin es, Iow a

H E C e n tra l S ta te B a n k of
D es M o in es, th ro u g h its B ond
D e p a rtm e n t, gives b a n k s com ­
p le te ex p e rt service in se c u rity in ­
v e stm e n ts, fu rn ish in g in fo rm atio n ,
safe-keeping secu rities, collecting
coupons an d d iv id en d s an d p lac­
ing b u y in g an d selling ord ers.

T

BOND DEPARTM ENT

Central ü>tate JBanb
o f D es M o in es

Member Federal Reserve System

“THE BANKERS’
BANK”
H ere is a bank for banks and bankers
—a stro n g financial org an izatio n
backed by a half m illion dollars in
capital,
surplus
and
undivided
profits. O ur service to co rrespon­
dents is prom pt and painstaking.

Iowa National Bank
Dave np ort, Iowa

L O U I S G. B E I N , C a s h ie r
HERMAN

S T A A K , A s s t. C a s h ie r

C H A S . S H U L E R , P r e sid e n t
F R A N K B. Y E T T E R , V i c e Pres.
W M . H. G E H R M A N N , V i c e Pres.

106

TH E N O R T H W E S T E R N

BANKER

Jan u ary , 1923

A New Bond H ouse in
D av en p o rt
N E W bond house has been
opened at D a v e n p o rt, Iow a,
to be know n as P riester,
Q uail & C undy, w ith offices in the
P u tn a m building-. M em bers of the

A

44Hand tliem a letter
to this Bank”
o u r p a tro n s an d
f r ie n d s v is itin g
C a lifo r n ia w ill b e ex­
te n d e d every courtesy
and consideration a t
the S e c u r i t y B a n k if
they bear a le tte r of
introduction from you ^

Y

s

H E N R Y C. P R IE S T E R

new firm are H enry P riester, R. G.
C undy and Jo h n J. Q uail, all of
w hom are experienced bond men

E C IIR IT Y t^ H
&SAVINGS B A N K
SA V IN G S

COM M ERCIAL

TRUST

C a p ita l a n d S u rp lu s $ 1 0 ,3 5 0 ,0 0 0
R esources E xceed
$ 1 6 5 ,0 0 0 ,0 0 0

E ighteen B a n k in g Offices in L os A ngeles
H ollyw ood - L ong B each - P a sa d e n a - G lendale - S outh P asadena
H ighland P ark - E agle Rock - San Pedro - H u n tin g to n B each

P e o p le s

Bank

Established 1890

DES MOINES, IOWA

C A P I T A L ( P a i d i n ) ......................................................
.$ 5 0 ,0 0 0 .0 0
C A P I T A L ( d a r n e d ) ..................................................................................... . 50
,0 0 0 .0 0 * 10 0 ,0 0 0 .0 0
50,0
S U R P L U S A N D P R O F I T S ( E a r n e d ) . . ...................................................... ..................
3 0 0 000 00
D E P O S I T S o v e r ............................................. ...................................................................... " d.oooloooioo
Sv,
W W i , ............................. ....P re s id e n t
CARL W. M ESM ER ..................... Assistant Cashier
FR A N K P. F L Y N N ............................ Vice President
ROSCOE C. MORROW .................Assistant Cashier
B. A. S L IN IN G E R ................... ..
Cashier
E. R. M ILLARD ............................ Assistant Caahler
E U G E N E H. T A Y LO R . . • .Assistant Cashier

A ccounts of Banks and Bankers Solicited

Ringheim, Wheelock & Co.
MUNICIPAL BONDS
I . A . R IN G H E IM

DES MOINES

L. F. W HEELOCK

R. G. C U N D Y

MECHANICS SAVINGS BANK
DES MOINES

JO H N H . G IB S O N , P re s id e n t
G E O R G E L . R O W E , V ic e P re sid e n t
G E O R G E M E S S E N G E R , V ic e P re s id e n t
N . B . S C O L E S , C a s h ie r
H A R R Y F . G R O S S , V i c e P r e s i d e n t _________ H A R P E R G O R D O N . A s s i s t a n t C a s h ie r


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Federal Reserve Bank of St. Louis

and th oroughly acquainted in the
Iow a territo ry .
M r. P rie ste r is a u n iv ersity of
W isconsin g ra d u ate and first en-

Jan u a ry , 1923

TH E N O R T H W E S T E R N

tered b an k in g w ith the H a rris T ru s t
& S avings B ank of Chicago. E arly
d u rin g the w ar he received an ap ­
po intm en t by the F ederal R eserve
to tak e charge of L ib erty Loan
drives in several Iow a counties. H e
later enlisted in th e arm y and
served as a lieu ten an t in th e field
artillery . A fter the w ar, he rejoined
the H a rris T ru s t & Savings, re ta in ­
ing th a t position until his recent
change.
Mr. C undy is an experienced Iow a
banker, s ta rtin g in 1902 in the Iow a
N ational B ank of D es M oines. H e
later w as elected cashier of the Se-

DIRECTORS

O F FIC ER S

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.

JAMES H. ASHBY
SAMUEL OOZZENS
S. T. KIDDOO
G. P. EMERY
ARTHUR G. LEONARD
J. A. SPOOR
H. E. PORONTO
M. A. TRAYLOR
F. EDSON W HITE
THOMAS E. WILSON
LOUIS P. SW IFT

Capital and Surplus

$2 ,000,000

107

BANKER

E stablish ed 1868

Resources Over

$20,000,000

Happy New Year
T o the banks of the corn belt and
all those who are m aintaining an
active interest in the live stock in­
dustry, and whose business in­
cludes the financing and clearing
of operations in this im portant line,
we respectfully offer our services
in co-operation tow ard m aking
1923 a banner Live Stock Year.

The Live Stock NATIONAL Bank
JOHN J. QUAIL

cu rity Savings of W are, Iow a, w here
he rem ained u n til he w ent to the
H a rris T ru s t & S avings of Chicago
in 1917. Since th a t date he has been
in the bond b u y ing d ep artm en t w ith
the C hicago in stitu tio n .
M r. Q uail is know n to. Iow a
bankers th ro u g h his connection
w ith th e N atio n al C ity Com pany,
w hose Chicago office he entered in
1917. W ith the exception of his
service in th e arm y, he has been w ith
th a t com pany since, in the Iow a
territo ry . M r. Q uail is a g rad u ate
of W isconsin university.
T h e new firm will deal in corpora­
tion, u tility , railroad and industrial
bonds and in m unicipal securities.
I t is also planned to install an elabo­
rate statistica l d ep artm en t for all
types of bond inform ation for in­
vestors.
Solitude is as needful to the imag­
ination as society is wholesome for
the character.— Lowell.

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Federal Reserve Bank of St. Louis

OF CHICAGO

Commercial
National Bank
WATERLOO, IOWA

C A P I T A L an d S U R P L U S
O n e‘ H alf M illion D ollars
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.

108

TH E N O R T H W E S T E R N

BANKER

»V»»W»Vh W»ìW»V»V»»*»V»V»V»V»V»V»V»iW

R E P R E SE N T A T IV E L A W Y E R S
I n s e n d in g : b u s i n e s s t o l a w y e r s c o n s u lt t b e fo l lo w i n g : l i s t . T h e s e firm s
c a n h a n d le y o u r b u s i n e s s p r o m p t l y a n d e ffic ie n t ly


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Federal Reserve Bank of St. Louis

Jan u ary , 1923

Americans Do N ot Save
“Do you know that out of every
1,000 people in Switzerland, 554 are
savings depositors?
There are in
Denmark 442, in Belgium. 387, in
France 346, in England 302 and in
Italy 200 out of every 1,000, and yet
in the United States we have but 99
savings depositors out of every 1,000
inhabitants. Almost 500 per cent more
in Switzerland.
Does that signify
anything as to the task the American
banker has before him ?”
The speaker was John H. Puelicher,
first vice president of the American
Bankers Association, in an address
given before the Colorado Bankers
Association. “You know, too,” said
Mr. Puelicher, “that tenancy instead
of ownership is growing among our
farm ers. In 1880 the farm s which
were operated by tenants constituted
25.6 per cent of the total number of
farms in this country. By 1920, 38
per cent or practically four of every
10 farm s were operated in this way.
“W e cannot become stabilized un­
less we become a nation of owners.
W e cannot become a nation of owners
until we are a nation of savers. How
are we to become savers? In the first
place we must know how to work.
W e must know how to save. W e must
know how to take care of our savings.
W e must know how to send those sav­
ings back into circulation. W e must
have a goal and a confidence that the
goal can be reached because we under­
stand the workings of economic law
which governs our living and working
and trading.
“It all comes back to education. W e
have more or less accepted the saying
that the poor we have always with us.
Perhaps there is no panacea for pov­
erty, for there will always be the few
unredeemably lazy and the few more
who become thoroughly discouraged
and overwhelmed by misfortune.
“There is no safety in what may be
told or sold to our people, save in edu­
cation. W e do not wish to be leveled
down in this country. N or on the
other end of the scale, do we want to
tolerate the profiteer, but we do want
to level up—up to a nation of substan­
tial middle class standards— owners of
bank accounts and homes, attractive
and well furnished; owners whose
food is good and palatable and in­
cludes some delicacies ; whose clothing
can have variety and be of good m ate­
rial ; who can choose their recreation
and their vocation; who can be intelli­
gent citizens in a full democracy and
accept the educational and cultural op­
portunities of our country and the
world, to give them not only power,
but also the enjoyment of the essential
and eternal value of life.”
Mr. Puelicher sees in the banker of

Jan u a ry , 1923

THE N O R T H W E S T E R N

today one whose interests are not con­
fined to the bank, and who instead of
remaining behind closed office doors
and serving the public through bank­
ing channels only, can take advantage
of the opportunity to serve society.
H e feels that the banker of today has
the unique opportunity of serving all
the different factors in our society and
should be in the schoolroom, in the
counsels of the laboring man, the
farm er and the business man. The
banker of today should not feel it too
much of a duty to give one talk a
month in the school nearest his bank.
H e should be prepared to speak on
any club, convention, labor or any
other platform giving accurate finan­
cial inform ation and teaching financial
economics.
The program of the committee on
public education of the American
Bankers Association calls for such a
program. “No success can pay any
b ark er,” says Mr. Puelicher, “unless
it be also the success of his commu­
nity and his country. His success will
be greatest through the service he ren­
ders, working with the growing child
in the schoolroom, the man and woman
in industry, in agriculture, in business
and in government, bringing them a
new vision of life and service, fulfill­
ing the great desire of all of us for
stabilization and contentment.
But
the banker himself must be the great­
est servant.”
Trend of Business Good
The natural business tendencies of
the time are good, according to the
December report of the N a t’onal City
Bank, of New York, distributed re­
cently.
“The advance of agricultural prices
has put new life in business in sec­
tions where depression has existed,
and the volume of business being done
in most lines in all parts of the country
now is satisfactory,” the report de­
clares.
“The iron and steel industry is go­
ing at about 80 per cent of capacity
and m aking headway upon bookings
accumulated during the strikes. Pig
iron is lower as a result of the resump­
tion of numerous furnaces and prices
are weaker in several lines. The fu ­
ture is hopefully viewed on the
strength of buying by the railroads,
prospects for another year of activity
in construction work, better outlook
for implements and great confidence
among automobile m anufacturers.”
Grain congestion due to inadequate
transportation facilities is preventing
western farm ers from liquidating
their loans as rapidly as was expected,
the report points out.

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Federal Reserve Bank of St. Louis

BANKER

109

1
THE

O FFICERS

IN C H A R G E

OF

OUR

B a n k s a n d B a n k e r s D e p a r tm e n t
have served the bankers of this country for many years and
have developed a highly specialized departm ent.
The services of this D epartm ent and the advice of the Offi­
cers in charge of it are at the disposal of our correspondents.
A c c o u n t s of B a n k s and B a n k e r s Invited

<
J Iie N a t io n a l ( i t y B a n k
o f (IlICAGO
D A V ID R . F O R G A N , P re sid en t
B a n k s an d B a n k e rs D e p a rtm e n t
F R E D A . C R A N D A L L , V ice P resid en t
S . P . Jo h n so n , A s s t. C ash ie r
R . V . K elley, A sst. C ash ier

TH E N O R T H W E S T E R N

110

BANKER

Jan u ary , 1923

B R E A D T H OF V IS IO N
N E E D E D IN 1923
(C ontinued from page 11)
received from them is carefully used
it will m ake a very g re a t im prove­
m ent in state conditions. I regard
it as a tim e w hen a sincere effort
should be m ade to g et o u t of debt
both by banks and individuals, and
not a tim e for tak in g on new obli­
gations.

“ He Understood His Business”
Stephen G irard was Philadelphia’s
first financial power.
H is ventures
were successful, his achievem ents en­
dured. H e understood his business.
T his legacy of success and this un­
derstanding of finance have been care­
fully developed since 1832 by the in­
stitution w hich bears his nam e. T he
G irard N ational Bank has always en­
deavored, not merely to m aintain these
ideals, but if possible to surpass them .

T

he

G irard N

ational

B ank

PHILADELPHIA

Salary Continuance Policy
O F F IC E R S

E. M. S E A R L E , Jr.
P r e s id e n t
H . E . W O R R EL L.
S e c .-T r e a s.

P ay s fifty dollars, one hundred dollars,
one hundred fifty dollars, or tw o hundred
dollars a m onth (first p aym ent im ­
m ediately upon receipt of proofs of the
death of the in sured) and continues the
paym ent of like am ount for stated periods
of from six m onths up to tw en ty years.
A sk us m ore about it.

Omaha Life Insurance
Company
OMAHA, NEBRASKA

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

T here is now a m uch b e tte r feeling
all th ro u g h our sta te and we have
every reason to give h eartfelt re ­
sponse to the g reetin g of “ H appy
New Y ear”.
J. H. IN G W E R S E N , vice presi­
dent First National Bank of Duluth:
—T h e year 1922, w hile in some re­
spects an im provem ent over 1921,
has nevertheless been a tu m u ltu o u s
one, and it is therefore to be hoped
th a t 1923 will prove to be a stab il­
izer. W orld conditions are still in
chaos, b u t th ere are some indications
th a t sanity is g radually tak in g its
rig h tfu l place in ad ju stin g condi­
tions so th a t the people of all coun­
tries can function in a w ay th a t best
serves the g re ater num ber.
In our own co u n try we are suffer­
ing from a spirit of u n rest, and a
new crop of political sh y sters th a t
have come into the lim elight in re­
cent political upheavals, have not
aided in resto rin g th a t tran q u ility
of m ind so essential to the m ain­
tenance and p erp etu ity of good gov­
ernm ent.
B ankers and business m en m u st
be on th eir gu ard lest political dem ­
agogues succeed in so tam p erin g
w ith the F ederal R eserve System
as to destroy its usefulness. I t m ay
not be perfect in every detail, b u t
it is nevertheless the m ost im p o rtan t
piece of constructive legislation th a t
has been placed on our sta tu te
books in m ore th an half a century,
for it is quite generally acknow l­
edged th a t if it had no t been for the
F ederal R eserve System , our p a r­
ticipation in the w a r w ould have re­
sulted in a serious financial panic.
T h a t w as our experience follow ing
every o th er w ar we have been en­
gaged in, and th ere is no reason to
believe th a t h isto ry w ould not have
repeated itself follow ing our p ar­
ticipation in the g re atest w ar of all
tim es. If the
F ederal R eserve
B anks erred d u rin g th e deflation
period the blam e attach es to the di­
rectors and governors and not to
the system . L et us, therefore, as
good citizens having the w elfare of
our co untry a t heart, ex ert all our

Jan u a ry , 1923

THE N O R T H W E S T E R N

influence to p rev en t any m aterial
ta m p erin g w ith the F ederal R eserve
act. B usiness m en should be in ter­
ested, for the su b ject is vital to th eir
well being, and every legitim ate ef­
fo rt m u st be p u t fo rth to co u n teract
th e vicious pro p aganda th a t is being
b ro ad casted by irresponsible po­
litical dem agogues w ho do not have
the slig h te st conception of the real
functions of th e F ederal R eserve
B anks, b u t w ho are prim arily in ter­
ested in secu rin g the votes of the
u n th in k in g and dissatisfied elem ent
in our population. T h e repeal of,
or a m aterial change in the func­
tions of th e F ed eral R eserve System
as now laid down by law, w ould be
the crim e of the age, and the people
will n o t p erm it it if they can all be
ta u g h t exactly w h a t the F ederal R e­
serve S ystem is, w h at it can do and
w h at it cannot do. I t is su rp risin g
how uninform ed leading business
m en are on th e subject, and it is,
therefore, high tim e th a t the banker,
w ho should u n d erstan d the system ,
tu rn ab o u t and becom e a teacher in
the h ighw ays and by w ays. T h a t
is the b ankers job for 1923 and it
is a big one too, m uch m ore im ­
p o rta n t th an m any of us realize.
Declares Dividend
D ire cto rs of T h e M erchants &
M etals N ational Bank» at th eir last
m eeting declared th e reg u lar q u ar­
terly dividend of 5 per cent and an
added dividend of 2 per cent. B oth
dividends w ere payable Jan u a ry 2nd
to stockholders of record D ecem ber
23rd.
T h is ex tra dividend m akes the
to tal p ay m en t to stockholders from
th e p ast y e a r’s earnings of T he
M echanics & M etals N ational Bank,
24 per cent. T h is com pares w ith 22
per cent paid last year and 20 per
cent in 1920. T h e annual dividend
w as increased in 1919 from 16 to 20
per cent. U p to 1916 the annual
dividend w as 12 per cent.

A C entury of Service
T h is b a n k offers to its p a tro n s th e serv ice of
a n in s titu tio n w ith a h is to ry reac h in g b ack
m o re th a n a c e n tu ry .
O u r b a n k in g , foreign, in v e s tm e n t a n d tr u s t
d e p a rtm e n ts offer a co m p lete fin an cial se rv ­
ice to m e e t th e v a rie d n eed s of o u r clien ts.
D e ta ile d in fo rm a tio n of th e serv ice re n d e re d
b y a n y of o u r sp ecial d e p a rtm e n ts w ill be
g la d ly su p p lie d u p o n re q u e st.
E stablish ed 1810

T he M echanics & M etals
N ational Bank
of th e C ity of N e w Y o rk

C apital, S u rp lu s and P r o fits, $ 2 7 ,0 0 0 ,0 0 0

A L B E R T F . B A L C H , P r e s id e n t
C H A R L E S C . T R IN E , V ic e P r e s id e n t


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Federal Reserve Bank of St. Louis

W IL L IA M G . S T R IC K .L E R , V ic e P r e s .
H A R R Y W . J E N N I N G S , C a sh ie r

Marshalltown
State Bank

W ashington Banker Married
G eorge W . R udiger, assistan t
cashier of the F arm ers & M erchants
S tate B ank of W a sh in g to n , Iow a,
w as m arried recently to M iss M il­
dred R u th M cL aughlin, of th a t city.
M r. R u d ig er w as at one tim e em ­
ployed in a bank at Sperry, Iow a,
and later w ent to W a sh in g to n , w ith
th e C om m ercial Savings. H e joined
the staff of the F arm ers & M er­
ch an ts S tate follow ing his re tu rn
from w ar service in F rance.
M en are valuable ju s t in p ro p o r­
tion as th ey are able and w illing to
w ork in h arm o n y w ith other m en.—E lb ert H u b b ard .

111

BANKER

72-93

M arshalltow n, Iowa
M ember of th e Federal Reserve
System

I t D o e s M a k e a D iffer e n c e
W here Y ou B ank

Over Forty Years of
Conservative Banking

112

TH E N O R T H W E S T E R N

BANKER

Jan u ary , 1923

It Will Give You a New
Conception of Your Possibilities
"jV/f A N Y a m an has m ade his
^
fo rtu n e by getting a new
view point o n th e possibilities
o f his business.
Y ou can make your business
w hat you think you can.
T u rn your mind o n your
business to d a y - - th a t’s th e fire
th a t will m ak e th e steam th a t
w ill tu rn th e w heels th a t will
m ake your business go in 1923.
If you lo o k at it an d th in k
ab o u t it in ten tly en ough you
will realize perhaps w h at you
have never realized before - th a t it is a living, breathing,
th r o b b in g th in g th a t will re­
spond p re c ise ly to th e th o u g h t
you give it.
A successful business is merely
the crystalization o f a state o f
mind.
Y ou can make yo u r business
w h at you think you can.

T h in k P rofits, T h e n
M ak e T h e m
D uring th e past year w hen
many b an k ers w ere th in k in g
unhealthy th o u g h ts ab o u t b u si­
ness, o th e r bankers, w hom

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

we have th e pleasure to serve,
w ere tu rn in g over in th eir
m inds new angles on th eir
business, w hose faces reflected
th e ir th o u g h ts in alm ost u n b e ­
lievable results.
F or th e first tim e in it’s his­
to ry an O h io b a n k gave it’s
s to c k h o ld e r s a C h r is tm a s
p resen t o f a generous extra
dividend; an Iow a b an k paid
40% dividends for th e year; a
m illion d ollar W isconsin b an k
do u b led its deposits; an d this
in 1922 w hen m o st bankers
hardly h ad th e tem erity to
th in k ab o u t th e ir business at
all.
Y ou can make your business
w h at you think you can.

H u n d re d s A re D o in g It
H u n d red s o f bankers, at o u r
suggestion, have already tak en
th is first step tow ard bigger
dividends, m ore certain profits,
greater business pow er during
th e new year. T h e folio illus­
tra te d above has started th em
to th in k in g along rig h t lines
and in alm ost every case they
will tell you th a t in it they have

discovered a lasting in spiration
to p u sh th eirb u sin ess ahead, the
ideal m eth o d o f doing it easily,
econom ically an d efficiently.
You can make your business
w hat you think you can.

A sk F o r Y o u r C o p y
Y ou have th e sam e o p p o r­
tu n ity th a t th ese b an k ers had.
T h e folio is yours fo r th e ask­
ing. I n every o n e o f its eight
folders y o u will fin d yourself
lifted above ’th e d eadly m o n o ­
to n y o f ro u tin e a n d given a fresh,
vigorous co n cep tio n o f your
possibilities in building b u si­
ness for yo u r b ank.
W rite For It Today

CKAMMCfi SERVICE
INCORPORATED

if^nancicJjidC'QrliAiny (¿xc/aAiCo^r,
MINNEAPOLIS
716 Fourth Avenue South

N O T E : In asking for this
folder please give us the
num ber o f newspapers in
your town; the size o f your
m ailing list and the k in d o f
business you need this year.

Jan u a ry , 1923

TH E N O R T H W E S T E R N

BANKER

113

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I N D E X T O A D V E R T IS E R S
P age
A m e r ic a n B a n k P r o te c tio n Co.......... 81
A m e r ic a n C o m m er cia l an d S a v in g s
B a n k ............................................................ 99
A m e r ic a n F ix t u r e Co............................... 56
A m e r ic a n L iv e S to c k In s u r a n c e Co. 77
A m e r ic a n M o r tg a g e &
S e c u r it ie s
B

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B a lla r d , H a s s e t t & B eh , In c. . . . . . 1 0 9
B a n k o f A m e r ic a ..................................... 38
B a n k o f B r o o k in g s ................................. 71
B a n k e r s A c c id e n t In s u r a n c e Co. . . 59
B a n k e r s S u p p ly Co..................................... 55
B a n k e r s T r u s t Co., D e s M o in es . . . 91
B la c k h a w k N a tio n a l B a n k .............. 99
B lo o m fie ld P u b lis h in g Co.........................96
B r o lta w & Co. ..............................
45
B u r n s B ro s. Co......................................... .’ . 88

C a n a d ia n P a c ific R a ilw a y ................ 82
C edar R a p id s L ife In s u r a n c e Co. . . 37
C edar R a p id s N a tio n a l B a n k ............ 9 6
C en tra l S ta te B a n k ................................. 105
C en tra l T r u st Co., D e s M o i n e s ......... 92
C en tra l T r u s t Co., o f I llin o is ............ 76
C h ase N a tio n a l B a n k .............................. 78
C h a th a m & P h e n ix N a tio n a l B a n k . . 35
C h em ica l N a tio n a l B a n k ..................... 37
C h ica g o J o in t S to c k L an d B a n k ..1 1 5
C itiz e n s T r u s t & S a v in g s B a n k ,
A b erd een ..................................................... 72
C ity N a tio n a l B a n k , C lin to n .............. 96
C le v e la n d D is c o u n t Co.............................. 42
C o m m er cia l N ’t ’l B a n k , W a te r lo o ..1 0 7
C o n tin e n ta l & C o m m er cia l N a tio n a l
B a n k s .......................................................... 85
Corn E x c h a n g e N a tio n a l B a n k . . . . 78
C o u n tr y G e n t l e m a n ................................... 4
C ra d d ick S e r v ic e .........................................112
D
D a k o ta T r u s t and S a v in g s B a n k . . . 70
D e s M o in es D u p lic a tin g Co.................. 54
D e s M o in es L ife an d A n n u ity C o ... 61
D e s M o in es N a tio n a l B a n k ................. 114
D e s M o in es R u b b er S ta m p W o r k s .. 54
D r o v e r s N a tio n a l B a n k ....................... 86
D u b u q u e N a t io n a l B a n k ..................... 40
E
E q u ita b le L ife A s s u r a n c e S o c i e t y .. 105
E q u ita b le T r u s t Co...................................
E r n s t & E r n s t ............................................ 83
F

F a r m e r s B o n d a n d M o r tg a g e Co. . . 50
F e d e r a l L a n d B a n k ................................ 39
F ir s t N a tio n a l B a n k , B u r l i n g t o n .. 103
F ir s t N a t io n a l B a n k , C h ic a g o . . . . 34
F ir s t N a tio n a l B a n k , C o u n cil B lu f fs 94
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 . . . . 1 0 9
F ir s t N a t io n a l B a n k , D u lu th ............ 81
F ir s t N a tio n a l B a n k , M in n e a p o lis .. 81
F ir s t N a tio n a l B a n k , M it c h e ll............ 71
F ir s t N a tio n a l B a n k , O m a h a ..............
2
F ir s t N a tio n a l B a n k , R a p id C ity . . . 71
F ir s t N a tio n a l B a n k , St. L o u i s . . . . 101
F ir s t N a tio n a l B a n k , S io u x C ity . . 2

F ir s t N a tio n a l B a n k , S p ir it L a k e .. 104
F ir s t N a tio n a l B a n k , W a te r lo o . . . 91
F is h e r Co.......................................................... 54
G

G en era l M o to rs Co....................................... 41
Co.50 N a tio n a l B a n k ............................. 110
G irard
G o rd o n -V a n T in e Co................................. 31
G reat W e s te r n A c c id e n t In s u r a n c e
Co....................................................................... 58
G r o th -H o s te tle r Co..................................... 68
G u a r a n ty T r u s t Co., o f N ew Y o r k .. 97
G u th rie, W illia m ...................................... 104

P age
N a tio n a l A m e r ic a n L ife In s u r a n c e
Co........................................................................108
N a tio n a l B a n k o f ¡Com m erce, St.
L o u is ............................................................104
N a tio n a l B a n k o f th e R e p u b lic . . . . 35
N a tio n a l C ity B a n k , C h ica g o ............109
N a tio n a l C ity Co. ................................... 78
N a tio n a l P a r k B a n k .............................. 65
N a tio n a l S h a w m u t B a n k ..................... 82
N o r th e r n T r u s t Co., B a n k ................ 39
N o r th w e s te r n N a tio n a l B a n k ............ 3
N o r th w e s te r n N a tio n a l L ife I n s u r ­
a n ce Co.......................................................... 2

H
H a ls e y , S tu a r t & C o................................ 40
H a n o v e r N a t io n a l B a n k ..................... 46
H a n c o c k M u tu a l L ife I n s u r a n c e Co.,
John
................................................
58
H a w k in s M o r tg a g e Co. .......................... 48
H o g g s o n B r o s................................................
H o t e l M a rtin iq u e ....................................... 80
H o te l S h erid a n P la z a ............................ 92
H o te l W a h k o n sa ........................................ 108
H illb e r n T h r ift C o rp o ra tio n .............. 33

I
In d ia n a L im e s to n e Q u a r r y m e n ’s A s ­
s o c ia tio n
.................................................... 116
I n t e r - S t a t e S u r e ty Co.............................. 69
I o w a F a r m C red it C o rp o ra tio n . . . 38
I o w a L o a n an d T r u s t Co........... 7 an d 45
I o w a N a tio n a l B a n k , D a v e n p o r t. . . . 105
Io w a N a tio n a l B a n k , D e s M o i n e s ..102
Io w a N a tio n a l F ir e I n s u r a n c e C o ... 58
Io w a S ta te T r a v e lin g M en ’s A s s o ­
c ia t io n ..............................................
98
I r v in g N a tio n a l B a n k .......................... 36
K

K n a u th , N a ch o d & K u h n e ................... 47
K u h lm a n , K a r l A .........................................101
h

L a w y e r s ’ P a g e ............................................. 108
L e a ch & Co., A. B ....................................... 47
L e a v it t an d J o h n so n N a tio n a l B a n k . 103
L e a v it t an d J o h n so n T r u s t Co......... 50
L in c o ln N a tio n a l L ife I n s u r a n c e Co. 63
L it h o g r a p h e r s ’ C o -o p e r a tiv e
A sso ­
c ia t io n .......................................................... 95
L iv e S to c k E x c h a n g e N a tio n a l B a n k l0 7
L iv e S to c k N a tio n a l B a n k , O m a h a .. 77
L iv e S to c k N a tio n a l B a n k , S io u x
C ity .............................................................. 70
L on d on , J o in t C ity & M id lan d B a n k . 100
L y tle C o.............................................................. 52
L y tto n S a v in g s B a n k ............................ 90
M
M a r s h a llto w n S ta te B a n k ....................I l l
M cN am ara Office S u p p ly C o....................56
M e c h a n ic s an d M e ta ls N ’t ’l B a n k .. I l l
M e c h a n ic s S a v in g s B a n k ......................106
M e r c h a n ts L o a n an d T r u s t Co........ 94
M e r c h a n ts N a tio n a l B a n k
.............. 95
M e r c h a n ts N a tio n a l B a n k , C edar
R a p id s ...........................................................103
M id lan d M o r tg a g e Co................................ 51
M isso u ri S ta te L ife I n s u r a n c e C o ... 62
M u sc a tin e S ta te B a n k .......................... 99

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

N

O
Old C o lo n y S ta te B on d Co..................... 44
O m aha L if e I n s u r a n c e Co...................... 110
O m aha N a tio n a l B a n k .......................... 74
O m aha P r in t in g Co..................................... 36
O v e r s tr e e t Co., J. W .................................. 82

P
P a c k e r s N a tio n a l B a n k ................ ..
75
P a in e , W eb b er Co....................................... 44
P e o p le s S a v in g s B a n k ......................... 106
P e o p le s T r u s t an d S a v in g s B a n k .. 109
P e te r s T r u st Co......................................
76
P r ie s t e r , Q u a il & C u n d y ..................... 46
R
R a n d a ll & Co., E . G.................................. 89
R an d , M c N a lly & Co.................................. 93
R in g h e im , W h e e lo c k & Co..................... 106
R o y a l U n io n M u tu a l L ife In su r a n c e
Co...................................................................... 62
S

S ea b o a rd N a tio n a l B a n k ..................... 46
S eco n d N a tio n a l B a n k ......................... 98
S e c u r ity N a tio n a l B a n k , S io u x C ity . 104
S e c u r ity N a tio n a l B a n k , S io u x F a lls 70
S e c u r ity S a v in g s B a n k ......................... 94
S e c u r ity T r u s t an d S a v in g s B a n k .. 106
S io u x F a lls N a tio n a l B a n k ................. 66
S io u x F a lls S a v in g s B a n k ................... 64
S ta n le y , H e n d e r s o n & Co....................... 51
S ta te C en tra l S a v in g s B a n k ................. 100
S ta te L ife In s u r a n c e Co......................... 60
S to c k y a r d s N a tio n a l B a n k , S. O m aha 75
T

T h o m p so n

..................................... 47 an d

99

TJ
U n iv e r s a l L ife In s u r a n c e Co.................108
U n io n B a n k o f C an ad a .......................... 72
U n io n T r u s t Co., C h ica g o ..................... 29
U n ite d S ta t e B a n k ................................... 96
U n ite d S ta t e s N a tio n a l B a n k ............ 75
U p h a m B ro s. Co.............................................108
V

V a lle y

N a tio n a l B a n k

...........................100

W

W a te r lo o B a n k an d T r u s t Co.............. 51
W e s te r n L ife I n s u r a n c e Co.................... 63
W h ite , P h illip s Co........................................ 100
Z

Z a is e r ’s S p e c ia lty Co................................

57

114

THE N O R T H W E S T E R N

BANKER

Jan u ary , 1923

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POOR

In The Prosperity Area
HIS map, recently compiled for "The Nation’s Busi­
ness” by A. W. Douglas,®shows general conditions
throughout the country. White areas indicate good crops,
industrial activity, and "high pressure” buying. Shaded
areas are "fair” in these respects. In the black areas
these indications of prosperity are lacking.

T

It will he seen that Iowa is one of the three States whose
areas are com pletely white.
The Des Moines N ational offers to correspondents
all the advantages o f a strong banking institution
in a prosper oils State.

Des Moines National Bank
Southeast Corner

6th &■Walnut Sts.

Des Moines, Iowa


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

January, 1923

T TI E N O R T H W E S T E R N B A N K E R

115

3 3 Y E A R FA R M L O A N S

SERVICE
TO COUNTRY BANKERS
HIS institution is operated by experienced farm mortgage men, all
of whom have had experience in country banking. They are fa­
m iliar w ith the territo ry in w hich they operate and w ith the needs
of the country b an k er in th at territory, and are able to give prom pt and
efficient service in closing loans subm itted.
The country b anker of the corn belt district of Illinois and Iowa who
desires to give m axim um service to his com m unity will not overlook the ad­
vantages of a perm anent connection w ith this institution as an outlet for farm
mortgages.
We pay commissions on all loans closed, and the business is handled
through country bank connections.

WHAT IS A LIFETIME CUSTOMER AND FRIEND
WORTH TO YOUR BANK?
There is no better or m ore sure way of m aking them than by placing
long-time farm loans— and for the time spent will bring greater retu rn s to
your bank than anything else you can do.

THE RATE IS NOW 5 1-2% FLAT
W ith this rate to the borrow er, no commission, no stock subscription,
and the m any other advantages of the long-time loan, you can make the
cheapest and best loan ever offered on Iowa farms. Now is the time to
liquidate your own frozen credits by placing these loans w ith your borrowers.

CHICAGO JOINT STOCK LAND BANK
F o r m e r ly F ir st J o in t S to c k L a n d B a n k

C a p ital a n d R eserves $3,000,000

A ssets exceed $34,000,000

OFFICERS:
G U Y H USTO N
O. F . SC H E E
.

.
.

.
.

. P r e s id e n t
V ic e P r e s id e n t
H.
A . S M IT H

J. E. H U STO N
.
R A Y E . P IC K R E L
. .
.
S e c r e ta r y

C o n tin e n ta l a n d C o m m e r c ia l B a n k B u ild in g
C H IC A G O
P e r p e tu a l B id ., C ed ar R a p id s, l a .

Iow a B id ., S io u x C ity , la .

.
.

.
.

V ic e P r e s id e n t
V ic e P r e s id e n t

V a lle y N a tio n a l B a n k B u ild in g
D E S M O IN E S
F e r g u s o n B id ., S p r in g fie ld , 111.

3 3 Y E A R FARM LOANS

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

II

TH E N O R T HW E ST E R N B A N K E R

116

Jan u ary , 1923

United States Mortgage & Trust Co.
Building, Madison A ve. and 74th
St., N ew York City.
H enry Otit Chapman, Architect.

Thibaut Building, 269-71 Madison
A r e ., N ew York City.
Trowbridge & Livingston, Architects.

Indiana Limestone Buildings Again Win Awards
Each year the Fifth Avenue Association, an organization
comprised o f merchants, business men and Architects in
N ew Y o rk City, awards medals for the best appearing build­
ings erected in the Fifth Avenue District during the year.
Due to unusual construction activity during the past year,
the Committee on Architectural M erit found it a difficult
task to determine the buildings deserving o f 1922 awards.
A fter inspection o f every building which could possibly be
considered, H on. W ill. H . H ays, on behalf o f the Com ­
mittee, conferred the following awards:

First Prize— Gold Medal and Diplom a to the United
States M ortgage 8C Trust Company, 940 Madison
Avenue.
Second Prize — Silver M edal and Diploma to the
Thibaut Building, 269-71 Madison Avenue.
Both buildings are constructed o f Indiana Limestone.
W hen an Architect specifies this worthy material, he is assured
that it will magnify the beauty o f his design.
1Booklets will be sent free upon request

Indiana Limestone Q uarrym en’s Association
B o x 791

Bedford, Indiana

M E T R O P O L IT A N S E R V IC E B U R E A U , 622 M A R B R ID G E B L D G , N E W Y O R K C I T Y

T Ae

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

N A T IO N 'S

BUILDING

STONE