Full text of The Northwestern Banker : January 1925, Thirtieth Year, Number 449

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JANUARY, 1925
Better Times Ahead in 1925
Our Best Deposit-Building Plan'

THE PHOTO BELO W

Freckles seem favored by the Coolidge
regime, judging from the photo below of
Joseph W. McIntosh, new comptroller of
currency, succeeding Henry M. Dawes. Mr.
McIntosh is a former Illinois banker and
was director of finance for the shipping
board before becoming deputy currency
comptroller.— Photo, P. and A.

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

Northwestern National
Life Insurance Com pany
MINNEAPOLIS, MINNESOTA
JOHN T. BAXTER, President

PURELY

FOUNDED

MUTUAL,

OLD-LINE, WESTERN

COMPANY

BANKER

January, 1925

D IR E C T O R S
F . A . C H A M B E R L A I N , P re s id e n t F ir s t N a
tio n a l B a n k
E . W . D E C K E R , P r e s id e n t N o r th w e s te r n N a
tio n a l B a n k
C. T . J A F F R A Y , P r e s id e n t “ S oo” R a ilw a y
J. A . L A T T A , V ic e -P r e s id e n t N o r th w e s te r n
N a tio n a l B a n k
E . L . C A R P E N T E R , P r e s id e n t S h e v lin -C a r p e n te r -C la r k e Co.
B. F . N E L S O N , P re s id e n t H e n n e p in P ap e r Co.
A . F . P I L L S B U R Y , T r e a s u r e r P ills im r y F lo u r
M ills Co.
T . F . W A L L A C E , T reasu rer F arm e rs & M e
c h a n ic s S a v in g s B a n k
J O H N T . B A X T E R , P r e s id e n t N o r th w e s te r n
N a tio n a l L ife In s u ra n c e Co.

1857

OFFICERS
F R E D E R IC K

H . D A V I S , P re sid e n t

C. T . K O U N T Z E , V ic e P re s id e n t and
C h a irm a n

Ask the Man W ho
Knows

T . L . D A V I S , V ic e P re sid e n t
F . W . T H O M A S , V ic e P re sid e n t

Does advertising pay?

E . L . D R O S T E , V ic e P re s id e n t
J . H . B E X T E N , C a sh ie r
G . T . Z IM M E R M A N , A s s t . C a sh ie r
A . H . C H IS H O L M , A s s t . C a sh ie r
E . F . J E P S E N , A s s t . C a sh ie r
J. F . M C D E R M O T T , A s s t . C ash ier

Resources $25,000,000.00

W hen you ask the man who
K N O W S , the one who has used
advertising intelligently, you will
get the real facts.
He will tell you that advertising
placed in the right medium is a
wonderful business builder.
W h en you want to reach bankers
use the publication that is really
dominant in this territory.

The
has efficie n tly se rve d W e s t e r n B a n k s
fo r 66 y e a r s. Y o u r b u sin e ss is in v ite d .

Northwestern Banker

Your Representative
In Davenport and eastern Iowa should be a bank
capable of handling any sort of financial trans
actions.
We have at yonr service an experienced Bond
Department, a thoroughly equipped Trust Depart
ment. These departments and many others together
with our splendid new Banking Home, rapidly
nearing completion, reflect not only the desire for
progressiveness, but our desire to serve Iowa
Bankers better than ever before.

First National Bank
Davenport, Iowa
A.

F. DAWSON, President

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Federal Reserve Bank of St. Louis

IRVIN J. GREEN, Cashier

Your Transit Items
fo r the great territory served by Sioux
City are assured of prom pt attention
when you have the First National Bank
handle them fo r you.
Let us demonstrate the helpfulness o f
our correspondent banking service.

The First National Bank
of Sioux City, Iowa
CAPITAL ONE MILLION DOLLARS

January, 1925

ecauseof court*

estes so generously
extendea''writes a
customer.
" a prefer
The northwestern
to any other bank
in Minneapolis."
NORTHWESTERN
NATIONAL BANK
RESOURCES

' northwestern

1872

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Federal Reserve Bank of St. Louis

$ 9 6 . 0 0 0 .0 0 0

THE

NORTHWESTERN

January, 1925

BANKER

Keokuk National Bank, Keokuk, Iowa

The

N o r thw ester nBanker
Published at 555 Seventh Street, Des M oines, Iowa

Thirtieth Year

CONTENTS FOR JANUARY, 1925

Number 449
Page

Page
Across from the Publisher.......... By Clifford DePuy

Butchers and Bankers............

By Dale Graham

Frontispiece................................... Marshall C. Sweney

Banking and Insurance........ .

Better Times for 1925......................................................

Legal Department...................

By B. W. Moorhead
...............................

A New Y ear’s Greeting...................By the Publisher

” Ten Years A g o ” .................

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

“ Our Best Deposit-Building P lan ” .............................

How Stockholders Can Help.

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

Chicago Merger Completed.............................................

First National in New Home

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

Personal Paragraphs...........................................
Iowa Bond Dealers’ Section...............................
Insurance Section.............. ...................................
Farm Mortgage Section.....................................
For Bankers and Their W ants...........................
South Dakota Section.........................................

24
31
39
49
52
53

Nebraska News......................................................

Minnesota News....................................................

North Dakota News..............................................

Iowa News..............................................................

Index to Advertisers..............................................

The contents of this m agazine are fu lly protected by copyright

THE

N O R TH W ESTER N

B A N K E R , P u b l is h e d

D eP u y

P u b l is h in g

C o .,

I n c .,

C a p it a l

S t o c k , $100,000.00

Cl if f o r d D e P u y , P u blish er; G. A. S n id e r , Associate P u blish er; R. W . M o o r h e a d , Editor.
J. J. W e n g e r t , A ssociate M anager; R e x Y . L e n t z , Associate M anager.
M in n e a p o l is O f f i c e : Frank S. Lewis, 840 Lum ber E xchange B ld g ., P hone Main 3865.
Ch ic a g o O f f i c e : W m . H . Maas, 1148 First
Natl B ank B ldg Phone D earborn 6063. N e w Y o r k O f f i c e : Philip J. Syms, 150 Nassau St., P hone 483 6 Beekman.
S t . L o u is O f f i c e :
Donald H . Clark 408 Olive Street, Phone M ain 1342.
K a n s a s Ci t y O f f i c e : Glen D. Mathews, 405 R id ge B ldg., P hone H arrison 5857.
F o r t W o r t h , T e x a s , O f f i c e : H . L aw son H etherw ick, 508 Cotton E xchange Bldg.
Entered as second class matter at the Des M oines postoffice

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Subscrip tion Rates, $ 3 . 0 0 per year; 5 0 cents per copy

January, 1925

THE

NORTHWESTERN

BANKER

A Department for
YOU
One specialised department of this
bank is dedicated to banks and
bankers.
The officers of this department are
constantly studying your problems
— and their chief aim is to give
the

fullest

cooperation

our

correspondents.
Such are the service ideals of this
institution, with a record for haw
ing intelligently and faithfully
served its clients since 1872.

DES MOINES
Member Federal Reserve System

Capital, Surplus and Profits Over One Million Dollars

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

ACROSS THE DESK

BANKER

FROM THE

THIRST let me say, “ Happy
New Year.” Strange none
of us want an Unhappy New
Year—we are by nature, tradi
tion, environment and instinct,
creatures who crave happiness,
success and material comforts.
And rightly so—because man
kind has usually attained its
highest peaks of intellectual and
social development during pe
riods of our greatest happiness.
War and pestilence are not
conducive to happiness.
Peace and material progress
allow us time to think correctly and act wisely.
R. M. Washburn in the first biography published
of Calvin Coolidge, well expresses the lesson to be
learned that happiness comes from what ‘ ‘ is in us ’ ’
and not because of what is around us.

January, 1925

PUBLISHER

‘ ‘ His story, ’ ’ says Mr. Washburn, referring to President
Coolidge, “ is a lesson for every
American and for those across
the seas, of hope and realiza
tion ; that America is a country
of law, order and opportunity;
that success and happiness
come to one, not because of
what is around him, family,
fashion and fortune., but be
cause of what is in him, not for
what he has but for what he is ;
and that there is no end to the
path upwards when uncommon
sense, fidelity, preparation and Providence walk
hand in hand.”
May Peace and Happiness be yours in an ever in
creasing measure, is my wish to you as we enter
1925 together.

They A re with Us Again
S BUSINESS skies clear and economic activ
ity increases, so also does the activity, inge
nuity and aggressiveness of the “ promoter.”
If you think they are all dead just read a para
graph or two from a letter sent out by a land and
oil stock promoter who hails from Spokane, Wash.
Here is how he starts the fireworks:
“ Make your decision today that out of the vast
army of plodders you will rise failure-proof. Place
your money where it will GROW just as the seeds
planted by the gardener. Invest for Profit—place
your Capital where it will WORK for you to best
advantage.
“ You have the Opportunity—you have the Facts
—and I believe that you have the Courage and De
termination that enables one to win Financial Suc
cess. Otherwise I should not have written you this
one more letter—given you another chance to ob
tain one or more of the few remaining lots in New
Rozet Townsite at the original price of $250 each. ’ ’
Then follow a few paragraphs about “ Tremen
dous Profits” after which these “ gems of high pres

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Federal Reserve Bank of St. Louis

sure” literary hyperbole are hurled at the gassed
and gasping prospect.
‘ ‘ The FINAL decision now rests with you. Either
you remain in the same state of financial coma that
you were before Opportunity knocked at your door
OR you GRASP THIS DOUBLE CHANCE for
gain. So WHAT are you going to do about it?
Surely there can be but one answer—intelligent ac
tion upon your part.
‘ ‘ So discard the ear laps of doubt and indecision
which muffle the call of opportunity to Greater
Prosperity. Cast off the blind bridle of indiffer
ence which blurs your vision of the multiplied op
portunities embodied in this offering. Be coura
geous^—be a DOER-—become a member of the le
gion of intelligent men and women who have
EARNED and OBTAINED independent wealth
through prompt, judicious investment. It has been
truly said that there is no place on earth like earth
and when you combine this truism with the GOLD
EN OPPORTUNITY represented by Oil Prospects,
you have something that should be worthy of your
IMMEDIATE action.”

THE

January, 1925

NORTHWESTERN

Strange as it may seem, millions of dollars are
harvested every year on just such fake schemes as
this.
During 1925 more millions will be taken from
the pockets of the public than for several years—
because 1925 will be a more prosperous year than
any of its immediate predecessors.
To help overcome this kind of competition for the

BANKER

depositors’ dollars you must use increased selling
effort of all kinds, to keep these dollars in your own
bank.
Your letters and advertisements must carry the
message of sound banking and conservative investing in a more entering and appealing way than
ever before to offset the work of these “ economic
vultures.”

Hiring a H all to Sell Them A ll
I T THEN a bank with resources of $75,000,000
W
hires a hall and furnishes opera stars, world
famous humorists and nationally known entertainers just to present an ‘ ‘ Evening of Entertainment ’ ’
to its customers, stockholders and directors, that is
the most up-to-date manner we know of of “ selling
all” the bank’s friends and depositors on the institution.
This is the plan recently pursued by a large financial institution in a large city.
Of course there was no mention of the bank dur-

in& the entertainment but why should there be?
^ asn t every person there invited to come as a
guest of the bank? What finer, higher or moie
subtle advertising could you ask for than this ?
Was it a success? Yes, rather— every seat from
“ away up back” to “ front row center” was taken,
So we have another example of the modern, upto-date methods which are being used by banks to
attract attention, please their customers and incidentally—oh, very incidentally— attract new depositors.

The Business Thermometer
' 1 'HE year 1924 ended with the general business
situation much improved over the early months
of the year. The business thermometer has been
steadily but surely climbing higher to a normal and
satisfactory business temperature—not too hot and
not too cold.
As we enter 1925 the business weather prophets
are giving us their diagnosis of the kind of weather
we may expect for the next twelve months.
In a special article
1

in this issue of T h e
you will find the business
weather outlook very veil analyzed by some of
America s most successful bankers. Read it.
Every banker’s opinion concerning conditions in
1925 is that they will be better than 1924—that the
path to a permanent period of sound economic restoration has been firmly laid and that business in its
entirety will enjoy greater progress than for some
time.
N

o rth w estern

a n k e r

Here is the way George M. Reynolds reads the
business thermometer: “ In a purely domestic sense
there have been very encouraging developments,
The farmer is receiving higher prices and consequently is able to pay debts and buy with greater
freedom than has been the case at any time since
1920 an<l 1921. The banks of the country aie sound,
the reserve ra^° a^ the Federal Reserve Banks is
b ‘gh, and there is an ample supply of money and
credit with which to finance any reasonable expan.
£ ,
•
,,
sion of business.
„ j believe we are entering a period of pr0sperity?” says Grant McPherrin, “ and I look for prosperous times for the next two or three years. While
it is true we have gone through two rather strenuous years, I believe these stringent times will prove
beneficial. It has given us all an opportunity to
rearrange our business affairs, and due to many
things I might mention, I believe 1925 will prove a
prosperous year.”

" A C A S H I E R ’S C H E C K ” for $3.00 is all that is required to secure the
A
the banking fraternity and submit same for publication.
You do not bar*
monthly visits of the Northwestern Banker for an entire year.
Each issue / \
to agree with us, or with anyone else. We learn things by an interchange
contains from 108 to 200 pages of mighty interesting matter pertaining to
/ \ of ideas, and people with whom we disagree often prove valuable teachers,
banks and banking interests in the territory covered by the magazine.
We shall be glad to hear from you.
"O U R C O R R E S P O N D E N T S .”
Every bank in the Northwest is in“ N O P R O T E S T ” has ever been offered to the statement that the
vited to a place on this list. Send us items of local interest, tell us
field covered by the Northwestern Banker is the money-producing
about your bank and its growth, prospects, etc.,' also any other
section of the American continent, rich in hogs, cattle, com , etc.,
financial news of interest to bankers in your section.
We are
and dotted with thousands of prosperous banks, all doing a good
always glad to hear from our friends.
i business, and the majority of them are readers of "T h e North" S I G H T D R A F T S . ” We always carry a large "Reserve” of good
western.”
will and additional service, and will promptly honor drafts made
“ S U R P L U S A N D U N D I V I D E D P R O F I T S ” increase very rapupon same by any bank.
This department is for your special
idly with those banks, whose advertisements appear regularly in
benefit. It may be made of very great benefit to your bank. Do
the columns of this magazine.
Full information as to rates
not fail to avail yourself of its privileges.
j
gy \ and our special service will be promptly furnished on appli“A C L E A R I N G H O U S E . ” Our columns are a clearing house
" “* cation. Your business solicited and appreciated. The “ Bankfor all our readers. Express your views on any topic of interest to
er” has been twenty-eight years in its present field.

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3lfl

MARSHALL C. SWENEY
V ic e P resid en t, Io w a B ankers A ssocia tion
P resident, M itch e ll C ounty Savings Bank, Osage, Iow a

M arshall C. Sweney w as born in Osage, Iowa,
practically all o f his life.
He is a graduate o f Cedar V alley Se
U n iversity o f Iowa, class o f 1903.
In 1904 he entered the M itchell County Savings Bank, o f which his father,
Charles Sw eney was president, in the capacity o f bookkeeper and janitor.
H e has since held offices in the same bank o f assistant cashier, cashier,
and in 1919 w as elected president.
Mr. Sweney has been fo r years, active in affairs o f the Iow a Bankers
A ssociation. He has held offices in his County A ssociation, has been secre
tary and chairm an o f Group Three, and in June, 1924, was elected vice presi
dent o f the State A ssociation.
He was also the first president o f the “ O rganization o f Officers o f County
B ankers’ A ssociation s.”

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Better Times Ahead in 1925 Say
Leading Bankers
Grant McPherrin, president, Central
State Bank, Des Moines : ‘ ‘ Taking a
broad view of the situation I believe we
are entering a period of prosperity and
I look for prosperous times for the next
two or three years. While it is true
we have gone through two rather strenu
ous years, I believe these stringent times
will prove beneficial. It has given us
all an opportunity to re-arrange our
business affairs, and due to many things
I might mention I believe 1925 will prove
a very prosperous year.”
George M. Reynolds, chairman of
board, Continental and Commercial Na
tional Bank, Chicago: “ Our foreign
trade is good and the improvement in
European conditions is such as to war
rant the belief that international busi
ness will continue to be as good as at
present and possibly better. In a purely
domestic sense, there have been very en
couraging developments. The farmer is
receiving higher prices, and, conse
quently, is able to pay debts and buy
with greater freedom than has been the
case at any time since 1920 and 1921.
The railroads are prosperous and in posi
tion to make liberal expenditures for im
provements, equipment, supplies and
labor, and their expenditure in good
times creates a tremendous volume of
general business. The iron and steel in
dustry is flourishing. Reports are to the
effect that the movement of merchandise
into consumers’ hands is increasing as
evidenced by significantly large railroad
carloadings.
“ The November elections inspired con
fidence in business and assured the coun
try of a courageous, able and honest ad
ministration at Washington. There is
some talk of possible inflation, but I do
not see any indication of present trouble
in that direction, although the warnings
issued by Judge Gary against too high a
rate of expansion are timely. The banks
of the country are sound, the reserve
ratio at the Federal Reserve Bank is
high, and there is an ample supply of
money and credit with which to finance
any reasonable expansion of business.”

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W H A T OF
1925
? O
? •?
•
Editor’s N o te :— The Northwestern
Banker has asked leading bankers
throughout the country to give their
outlook on business for the New
Year. Their opinions are presented
on this page.

M. A. Traylor, president, First Trust
and Savings Bank, Chicago: “ Many
holiday seasons have passed since the
people approached the New Year with
as much joyous anticipation as now char
acterizes their look toward 1925. While
fundamentally conditions throughout the
world have undoubtedly made forward
strides in recent months, the psychology
of mass thinking will likely play no lit
tle part in the business world for the
New Year. It seems perfectly safe,
therefore, to anticipate that improved
fundamentals, plus mass optimism, will
give the country a fairly large measure
of business activity in the immediate
future. The extent and endurance of
this prosperity will depend upon the
good judgment and sound policies pur
sued by our entire population, because
all of us, from laborer to capitalist, must
understand that none of us can take ad
vantage of the situation to our own ap
parent peculiar benefit without meeting
in due course a retaliation from the rest
of the community, which will inevitably
end in trouble for all.
“ 1924 will leave to history a record
of satisfactory performance in economic
progress. At this period, commemorative
of peace on earth and good will toward
men, may we get hope that the New Year
will make a like large contribution to
the cause of future, permanent peace
among the peoples of the world.”
A. W. Loasby, president, the Equi
table Trust Company of New York : “ The

danger of foreign competition, which is
talked about so much, will probably not
injure our business during the year, but
its underlying threat will have a bene
ficial effect in preventing any tendencies
toward inflation. Another similar fac
tor is the possibility of an ultimate de
cline in the volume of building construc
tion. I look accordingly for prosperity
without inflation.
“ Railway traffic in 1925 should ex
ceed in volume the traffic carried in any
preceding year of our history. This fac
tor, if accompanied by decreasing operat
ing costs due to improving efficiency,
should result in a high level of railway
profits. I f so, this rehabilitation of rail
road finances should lead to profound
effects throughout our economic organi
zation. Moreover, the prosperity of the
agricultural classes, due to harvesting of
total crops estimated in value of over
twelve billions, will evidence itself in
expenditures during the early months of
1925 with its attendant effect upon gen
eral business.
“ The European situation is improving.
For the first time since the war, Ger
many can see hope ahead, and in con
nection with estimates of the working
out of the Dawes Plan, it is well to think
of the Austrian and Hungarian financing
where in each case the foundation for
an eventual economic recovery was laid.
Mathematical computations dealing with
plans for stabilizing conditions too often
overlook the effect on the national in
come of the recovery of the nation’s
morale, which is likely to be as impor
tant a factor as any.
“ However, the statement that Euro
pean conditions are good on the whole
and will become better, does not imply
that the rate of improvement will be al
ways uniform. Here and there post-war
readjustments will continue to cause
local disturbances; but I believe that
the corner has been turned and that what
lies ahead in Europe is progress.”
— $—
Walter W. Head, president, Omaha
National Bank, Omaha: “ The year
1924 has been chiefly noteworthy in

THE

western territory because of the virtual
completion of the second period of liqui
dation— the liquidation of indebtedness.
Today, with rare exceptions, we have
completed the process of liquidation and
are ready to begin a new cycle of busi
ness progress.
“ The first period of liquidation was
the liquidation of merchandise. This
began in 1920 and was practically con
cluded in 1923. In that period, farmers,
merchants and manufacturers suffered
heavy loss because of the necessity of
selling commodities at less than cost.
Prior to and during this period, debts
accumulated—debts
which
strained
credit capacity and which, in some cases,
forced bankruptcy upon debtor, creditor
or both.
“ In 1924, the liquidation of merchan
dise being virtually complete, we were
engaged principally in the liquidation of
debts. The cash value of the farmers’
grain crops—wheat, corn, oats and rye—
was measurably greater than in any year
since 1919. The sale of these products
made it possible for the farmer to reduce
materially his obligations to the mer
chant, the banker and the mortgage
holder. The result was the general liqui
dation of debts and the accumulation of
money in the banks.
“ The grain crops were not alone in
contributing to this result. Sheep rais
ers enjoyed a most profitable year and
enter 1925 under very satisfactory con
ditions. The wool crop of 1925 already
is being contracted for sale at 40 and 45
cents a pound; good ewes are bringing
from $10 to $14 a head. Hogs, despite
the high price of corn, justified the faith
of farmers who find a profit, over a term
of years, in marketing their corn not as
grain, but as pork. The cattle industry
was an exception to the general rule.
Producers of range cattle, for five years,
have suffered under adverse conditions
and will continue to be at a disadvantage
until beef prices are adjusted so as to
yield a profit on production costs, which
is not now possible. Yet, despite the
continued lack of profits in this industry,
the number of cattle on the range shows
little, if any, diminution from the nor
mal.
“ From all of these sources, the agri
cultural industry procured the funds
necessary to reduce its indebtedness sub
stantially. As a result of this change in
economic conditions, interest rates on
farm mortgages have been reduced by
from one-half to one per cent and com
mercial loans through this territory have
been notably easier.
“ On the other hand, retail and job
bing trade did not increase to the extent
that had been anticipated or that might
seem warranted by underlying condi
tions. With money in the bank, the
consumer showed a disinclination to buy
goods beyond actual necessities. Retail

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NORTHWESTERN

BANKER

January, 1925

Iowa Bankers Urge Greater Economy
The following is a copy of the Resolution adopted by the council of
the Administrative and Legislative Committees of the Iowa Bankers
Association at the regular midwinter council meeting held on December
17, 1924:
Resolved, That in looking ahead to the new year, soon to be ushered
in, and reviewing the recession o f the trying period o f the past few
years, a period o f readjustment following the war, that we have a still
greater unbounded faith in this majestic State, in the opulent produc
tivity o f its soil, in the high intelligence and incomparable resource
fulness o f its people, and in their will to completely solve the complex
ities with which they have, in many ways, been annoyingly perplexed
and some, at times, perhaps distracted. The great qualities o f fo r
bearance, o f thrift, and of faith will win for her people an ultimate
and complete success. I f we would wish anything it would be that
we would exhort all of our fellow citizens to a still greater display of
thrift, to a still greater degree of economy; in the words of Calvin
Coolidge, “ We should have economy and still more economy.”
We
would express the hope that all should scrutinize carefully and ten
aciously any needless indebtedness for the future. This should not
only apply to the layman, but also to political subdivisions, that any
wastefulness, extravagance and unsound expenditures shall be barred.
Through economy the debts of the past years are being liquidated
at an ever-increasing rate, and with the increasing dissipation o f those
obligations, prosperity is well within sight. A partial insufficiency of
crop, with whose abundancy we are usually blessed by the Creator,
may somewhat deter its earlier coming back, but cannot obstruct its
irresistible return. With unity of purpose and a faith constant in our
selves and in our neighbors, our people cannot help but counteract and
offset misfortunes that have come to many, to some more conspicuously
and to all perhaps in a way. To this program the Iowa Bankers will
hold steadfast and do their full part.

and jobbing trade, for the most part, re
corded disappointment both in the vol
ume and the profit of sales.
“ The reason is not disclosed by sta
tistics and yet it is not hard to find.
The enforced economy of four years of
‘ hard times’ has produced mental hab
its not easily cast aside. Thriftiness,
enforced by grim necessity, has become
a virtue practiced, for its own sake. The
ultimate consumer, whose money has not
‘ come easily,’ is not inclined to spend it
freely. The business man who is a good
risk for new loans remembers too well
the result of unwise expansion. The
very qualities of relative prudence and
caution which brought him safely
through the crisis— when many of his
fellows were forced into bankruptcy—
now warn him against expansion. The
result is that money lies idle in banks,
awaiting a greater certainty of profit
instead of taking advantage of specu
lative chance.
“ The new year of 1925 promises a
steady increase of business, but no
‘ boom’ prosperity. There should be—
and will be, in all probability— a gradual
expansion of industry, a gradual lessen
ing of unemployment, a gradual increase
of trade volume and of profits. Many
uncertainties— not the least of which
was the outcome of the national election
—have been resolved into certainties.
“ For ten years the course of business
in America has been especially influ
enced by conditions abroad, particularly
in Europe. That factor is still apparent

and important. The acceptance of the
Dawes plan made 1924 a noteworthy
year in the foreign field, with great
promise of the eventual solution of criti
cal problems of European politics and
governmental finance.
The restoration
of private industry in Europe is still a
task worthy of the best business brains
of both Europe and America. Upon the
satisfactory solution of this problem de
pends the full significance of the Dawes
plan and, with that, the restoration of
normal trade relationships throughout
the world. Without it, the upward sweep
of our own prosperity can be, at best,
only partial and incomplete.
“ The year 1925 will be a year for the
exercise of careful study and sober judg
ment. Caution may properly be suc
ceeded by prudence, but it is still a time
for cool heads and the use of common
sense. To those who hold firmly to these
principles of conduct, 1925— unlike its
immediate predecessors—promises rea
sonably certain rewards.”
— $—
F. W. Thomas, vice president, First
National Bank, Omaha: “ The general sit
uation in Nebraska has made substan
tial improvement during the past six
months. The crop yields have been about
average, while the market has been high
er than was anticipated. While the price
of live stock has been disproportionate
to the price of corn, ^et it is felt that
feeding operations have been fairly prof
itable and it is expected that there will
(Continued on page 55)

THE

January, 1925

NORTHWESTERN

a g f l O Q p p o a g p P B a o Q Q

yH?

ìftew

BANKER

C C C C C 0 fl 0 0 c c t i o o c c c c ,

$ (Breetinoi to ^ou
By CLIFFORD DE PUY

E N years ago this month I expressed my good wishes to you as
we entered the year 1915. W hat I said then I say now—-only
with more emphasis— as we open the door to the year 1925. A
year which I am sure will record real progress and much prosperity.

A FORWARD LOOK
I
wish I could step into your bank just for a minute and grasp your hand, while
I wished you the best and most prosperous New Year that you have yet enjoyed.
As you turn over a new leaf and open your account for 1915 in this Ledger we
call Life, does it inspire you to work harder, to do better, to strive longer and to serve
more than you ever have before?
“ I am sure it does.
But if it does not— if you are satisfied to stay in a rut, to merely be a cog in a
wheel, to be a machine and not a man, whose heart beats with a resolve to make your
business more of a great profession for service to your community, to your customers
and to your bank— then the New Year holds nothing in store for you but the same
old monotonous grind of last year.
Catch a vision of what you can do in your community for your people this year.
Every man, woman and child in your town is a possible customer of your bank.
They are earners, producers, and creators of wealth, by hard work and honest toil.
As a banker you are their inspiration to save, to conserve and to invest their dollars
wisely and carefully.
“ Your business causes you to deal in notes, in mortgages, in dollars, in capital, in
surplus and in deposits, but in just the proportion that you refuse to worship these as
your god, and pay homage at the altar of personal service to your people— in just
that proportion will your power and influence be increased during the days and months
to come.
‘The world no longer has time for the narrow two-by-four banker who thinks only
of his six per cent or more and has no desire to serve his community unless it will add
to his surplus and personal wealth.
As a banker living in the year one thousand nine hundred and fifteen, your
success will be measured not alone by the capital, surplus and long standing of your
institution, but more by the bigness of your heart, by the kindness of your soul, by your
warm hand clasp for the other fellow, by a word of encouragement for the honest
worker, and by placing personality before profits, deeds before dollars, and service
before surolus.’ ’

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Federal Reserve Bank of St. Louis

THE

IN
PRIZES

for these letters

NORTHWESTERN

BANKER

Our Best Deposit- sen
IN
OU PRIZES
Building Plan
for these letters

$ 2 0 First Prize

TH E P R IZ E W IN N E R S

LINKING UP THRIFT AND
SCHOLARSHIP

The three letters published on this
and following pages win first, second
and third prizes in the Northwestern
Banker contest on “ Our Best Deposit
Building Plan.” The authors are as fo l
low s:

By J. D. KOLB,
Cashier, Farmers Savings Bank,
Manson, Iowa.

UR bank’s savings accounts total
has been increased considerably as
the result of a Scholarship Savings Cam
paign that we conducted, with the co
operation of our local school authorities,
in the Manson public schools. After
checking over the savings accounts and
what those deposits have totalled, I be
lieve that it has been our best plan.
The rules for the campaign and out
line were given out in a letter as fol
lows :
‘ ‘ Farmers Savings Bank, Manson, Iowa.
School Thrift and Savings Scholarship
Campaign.
‘ ‘ Thrift and savings are important
lessons to be learned in life. The value
of systematic savings is seen in the lives
of successful men and women, as we read
that they began to save their money
when they were young. We believe that
thrift and savings should begin in the
years when we are in the public schools
learning other important subjects that
prepare us for later years in life. We
realize the importance of scholarship,
prompt and regular attendance, and good
deportment in our schools today. We
are starting a Scholarship Savings Cam
paign in all grades of our school.
‘ ‘ Those eligible for contest: Every
boy and girl in the grade school and high
school is eligible for this campaign con
test.
“ Plan: Those having highest aver
ages in scholarship or grades, attendance
and deportment, will receive prizes.
‘ ‘ The prizes awarded will be given in
the form of credits on savings accounts
at this bank. These prizes must remain
on deposit for a period of one year at
4 per cent compound interest. During
the year the prize winners must have
earned, saved and deposited an amount
equal to the amount of the prize they
win in order to claim the prize. For
example, if John Jones wins a prize of
$3 it will be credited on a savings
account for him at this bank, where it
will draw 4 per cent compound interest.
It must remain in the bank for a year.
During that year he must earn, save and

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Federal Reserve Bank of St. Louis

January, 1925

First Prize, J. D . K olp , cashier, Farm
ers Savings Bank, Manson, Iowa.
Second Prize, V . D. Martin, vice presi
dent and cashier, Burton & Co. State
Bank, Kellogg, Iowa.
Third Prize, Frank Filip, cashier, Secur
ity Savings Bank, Cedar Rapids, Iowa.
Five prizes of two dollars each go to
the following bankers:
J. E. Conklin, vice president, Hubbell
Bank, H ubbell, Nebraska.
A1 Sanderman, cashier, Melbourne Sav
ings Bank, Melbourne, Iowa.
Miss Anna Lorenzen, W yom ing, Iowa.
E. A . Stewart, Commercial Savings Bank,
Des Moines, Iowa.
Francis Gerard Harrison, Brooklyn,
New York.
The letters of the latter five prize
winners w ill appear in the February
and March issues, together with letters
from other bankers who won honor
able mention.

working in their local business, which
net worth would not exceed $2,500. The
boy won a $1 prize; his account now
totals $25; one girl won a 50 cents prize,
her account now totals $19.50 ; the oldest
girl won the high school first prize, $6;
her account now totals $163.48. What
is more, these children earned every
cent of their respective accounts them
selves. The total amount of prizes was
$120. Those prizes were placed on sav
ings accounts; most of those accounts
have been productive. We believe that
the campaign was worthwhile and was
‘ Our Best Deposit-Building Plan’. ”

$ 1 5 Second Prize
MEETING THE “ STORK” WITH A
BIRTHDAY PLAN
By V. B. M ABTIN ,
Vice President and Cashier,
Burton & Company State Bank,
Kellogg, Iowa.

HE well founded complaint most
T
often made by advertisers, and espe
cially bank advertisers, is that they are
deposit in the bank at least $3, in order
to claim the prize.
“ The highest averages and prize win
ners will be taken from the grades as
they appear in the superintendent’s o f
fice.
‘ ‘ Amounts of prizes:
“ In the first eight grades, in each
grade ten prizes will be given for the
ten highest averages in grades, attenddance and deportment. In each grade—
First prize $3, second prize $2, third
prize $1, fourth prize 75 cents, fifth
prize 75 cents, sixth, seventh, eighth,
ninth, tenth prizes 50 cents each.
“ In the high school, twenty prizes
will be awarded for the highest aver
ages of scholarship, attendance and de
portment, covering the entire high school
in one contest. The prizes to be—First
$6, second $5, third $4, fourth $3, fifth
$3, sixth, seventh, eighth and ninth each
$2, tenth to twentieth, inclusive, each $1.
‘ ‘ Start today by learning your les
sons well, being punctual in attendance
and having a No. 1 deportment to try
for one of these Savings Account Schol
arship prizes.”
“ As a result, I am going to give a few
of the totals on savings accounts started
in this manner as they are today. These
three accounts are taken from one fam
ily. The father and mother are both

unable to obtain tangible results from
the money expended for advertising.
What bank, whether a new bank or an
old established institution, would not
gladly expend $500 if they could re
ceive positive assurance that in return
they would obtain five hundred new sav
ings accounts, and these from the de
sirable families in the community? It
would unquestionably be a good invest
ment regardless of the size of the ac
counts.
The plan which we devised and which
can be used successfully by any bank,
is productive of active accounts and a
vast amount of good will.
About four years ago a law was en
acted in Iowa creating a department of
vital statistics and providing for local
registrars. In this community the local
registrar is located in our town and has
charge of the records, of birth, deaths,
etc., in four townships immediately ad
jacent to town.
My first act was to obtain from the
local printshop a supply of cards printed
as shown by the specimen on this page.
These cars are very inexpensive and of
limp board so as to enable us to use them
on typewriter. We then obtained from
the records of the local registrar infor
mation of all births similar to the data
recorded on the specimen card. We

THE

January, 1925

Jan.

Feb.

1
I March

1
I April

I May

I June

NORTHWESTERN

„ July

! Aug. 1i Sept, i
i

Oct.

Nov.

Dec.

Kenneth Earl Thorpe
Name
Kellogg, Iowa
R. F. D. No. 3
Address
Merlyn Thorpe and. Elsie (Laskewitz) Thorpe.
Parents Name
August 31st 1923
Date of Birth
September 2nd 1923
Complimentary Yes
Account cpened
List below other information, and data.
Both parents have been lifelong cus
tomers of this bank. Will always re
main in this community.
This is
their first child.
Birthday•letter
should be mailed evening of 30th so
as to go out on Rural Route on morn
ing of 31st

Birthday
Letters

Other
Advertising

9-3-23
8-31-24

Above is a reproduction o f the birthday record card kept by the Burton & Co. State
Bank, Kellogg, Iowa.

took special pains to have the spelling
anti dates correct. The cards were then
cut to leave the tap for the month in
which the birth occurred. The cards
were then filed in alphabetical order for
convenience.
After this data was obtained we kept
it up to date from birth announcements
in local papers and also kept it revised
from the occasional reference to the
registrar’s records.
After obtaining this valuable mailing
list our next step was to write to each
desirable prospect a letter telling the
child that we were opening an account
in the child’s name and sending book
showing deposit of $1 complimentary
account. We imposed no conditions re
garding the deposit and Avhile the child
or parents are at liberty to withdraw
the $1.00 at any time none have ever
abused that privilege.
In addition we keep in touch with all
new births and when we learn of a new
baby we immediately inquire to find out
the child’s name and the first mail car
ries a bank book with a complimentary
account of $1.00 and this is accompanied
by a letter from the bank as shown by
specimen.
Further carrying out our system of
making a direct appeal to the child, we
refer to our card file and write to each
child, on each birthday, a congratula
tory letter, similar to other specimen.
The matter contained in this letter can
be varied according to conditions and
age of child. We attribute the success
of our plan to the fact that all are
human and it cannot help but tickle the
vanity of any child or parent to feel that
we remember the birthday of the child.
Once this system is inaugurated, any
stenographer can keep it up, as its op

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Federal Reserve Bank of St. Louis

BANKER

eration is automatic and the officer has
only to sign the letters, which should
be on a high-grade of stationery and
preferably of note size.
In many instances when sending out
accounts to new babies we have taken
the trouble to get in touch with grand
parents, and other near relatives and
asked each to contribute $1.00 and in
many instances the account has been
started with $10.00 in complimentary de
posits. Naturally, the larger the account
the more valuable from a banking stand
point.
We formerly found it difficult to find
an excuse to write to possessors of dor
mant savings accounts, but what can o f
fer a better excuse and what can better
cloak the formal stimulating letter than
a congratulatory letter on the birthday
of the customer ?
The outstanding advantages are that
this requires no costly equipment, is
absolutely sure to produce tangible re
sults, becomes automatic when once in
stalled, and is not only a deposit builder
but the good will alone more than compens.ates for the money and time ex
pended in its operation.
This is not only the best, but the
cheapest and surest deposit building plan
we ever used. For the benefit of other
bankers, I am giving you the text of the
letters used, as follow s:
Specimen of Letters Sent to New Baby
Dear B a by :
We have always anpreciated the
friendship and good will for this bank
of both your mamma and papa and now
we want you to become a customer of
this bank.
I am sending you under separate
cover a Savings Book and a small Sav
ings Bank.
The $1.00 deposited in this bank is a
present to you from the Burton & Co.

State Bank and is sent with our com
pliments, and when the bank which we
are sending you is full, we want you to
bring it in, together with the book, and
we will enter the amount on your ac
count.
When you are able to be out we want
your mamma to bring you in so we can
make your personal acquaintance.

Specimen of Letters Sent on First
Birthday
Dear Baby:
Permit us to extend to you our con
gratulations and good wishes on this,
your first birthday.
Perhaps daddy and mamma have al
ready thought o f this, but in the event
they have not, you and I are going to
suggest to them that a very desirable
birthday present will be the addition of
even $1.00 to your Savings Account.
This is a g ift that has; a tangible, as
well as sentimental, value and will re
main long after other gifts have gone.
I also notice that it has been some
time since you have had your Savings
Bank in to have its contents deposited
to your account. Why not ask Daddy
to bring it in the next time he comes to
town and thus keep the account active.
We wish you all that is good for the
coming year and trust and hope that
each added year will bring you into
closer relationship with this bank.

$5 Third Prize
LETTING DEPOSITORS SHARE IN
A BIRTHDAY CAMPAIGN
By F R A N K F IL IP ,
Cashier, Security Savings Bank,
Cedar Bapids, Iowa.

HORTLY after the first of January,
1923, I was looking for an excuse for
and appeal to our depositors to increase
their savings, as well as checking bal
ances with us, and it occurred to me that
on the 26th of April our bank would
have been in business thirty-four years,
and I decided to take this occasion to
make an appeal to our depositors, stating
to them that it was our hope and desire
to reach the three million mark in our
deposits by our thirty-fourth birthday.
I fully realized that the time was
short, inasmuch as at that time our de
posits amounted to about $2,650,000, but
we addressed a letter to about six thou
sand of our depositors, stating to them
that if each depositor would increase
his or her deposits by about 15 per cent,
that by our thirty-fourth birthday we
could reach the three million mark. We
were pleasantly surprised by the fact
that about seven or eight hundred of our
depositors responded to our request,
either by making a deposit, or by sig
nifying their willingness to assist.
We kept our depositors posted from
time to time as to the progress we were
making. The actual increase from our
depositors and friends amounted to about
$250,000, and it was necessary to do a
little forcing before the end by appeal-

THE

ing to some of our very close friends to
make a three or six months’ deposit
with us, for which we issued certificates
of deposit. However, we would not ac
cept a deposit of more than $10,000 from
any one institution or individual, and in
this way we made up the deficit, so that

NORTHWESTERN

BANKER

the showing on our anniversary was a
trifle over $3,000,000.
In order to receive as much publicity
out of the little campaign as possible, we
planned to hold an open house on the
evening of the birthday, and to which
we sent out to all of our customers and

January, 1925

friends an invitation for the day of the
birthday, which name we preferred to
anniversary, because it appealed to us
as being a much warmer expression. We
decorated the entire banking quarters
with flowers, and of course, bouquets
(Continued on page 28)

Chicago
N MONDAY, December 15, the
National Bank of the Republic, of
Chicago, opened for business in
its new home, the National Republic
Bank Building at La Salle and Adams
Streets. On Monday, December 22, the
National City Bank of Chicago joined
the National Bank of the Republic, when
the institutions were formally merged
under the title of The National Bank of
the Republic, of Chicago.
The consolidated bank has total assets
of around $90,000,000.00, which make it
one of the three largest National banks
in Chicago.
The new home of the consolidated in
stitution is one of the finest in the west.
The interior of the building has been
completely rebuilt and everything has
been arranged for the convenience and
comfort of the bank’s customers.
The bank will occupy four floors, the
Savings Department on the ground floor,
the Commercial Department on the sec*
ond or banking floor, the Foreign De
partment on the same floor as the Com
mercial Department, while the Trust and
Legal Departments and all important
clerical departments will have quarters
on the third. The Bond Department will
be located temporarily on the fifth floor
and a little later on will be moved to the
ground floor. A mezzanine floor has
been built in on the main banking floor,
which will be occupied by the Banks
and Bankers Division, the Credit De
partment, Auditing and Service and Pub
licity Departments. The Safe Deposit
Department will be located on the base
ment floor.
On the mezzanine floor the bank has
provided a club room for the use of its
customers and bank correspondents,
when they are in the city. Here the outof-town customer will find a private
desk for his individual use.- Each desk
is equipped complete all the way from
pen and ink up to push buttons for the
stenographer, messenger, or any other
service the visitor might desire. In con
nection there will be a special service
rendered through the Service Depart
ment, which service will provide the visi
tor with hotel and pullman reservations,
railroad, theatre tickets, etc. In fact,
anything from a home-town newspaper
on up.
John A. Lynch becomes chairman of
the board of the consolidated institution

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Federal Reserve Bank of St. Louis

Home o f the National Bank of the
Republic, Chicago

and David R. Forgan and George Wood
ruff each serves as vice chairman and
Hugo E. Otte president.
Mr. Lynch was one of the original
stockholders and directors of the Na
tional Bank of the Republic and served
as president of the institution from
1892 until January, 1924, when he be
came chairman ofthe board. Mr. Lynch
is one of the best known bankers in the
central west and has served the banking
fraternity in many directions. He has
been president of the Chicago Clearing
House Association and has been a mem
ber of the Clearing House Committee for
many years.
David R. Forgan’s career as a banker
had its beginning in the old Clydesdale
Bank of Scotland when Mr. Forgan was
but a boy of fifteen. In 1880 he emi
grated to Halifax, Nova Scotia, where he
entered the Bank of Nova Scotia. Eight
years later he became assistant cashier
of the American Exchange Bank of Du
luth, Minnesota, and in 1890 he took up
the cashiership of the Northwestern Na
tional Bank of Minneapolis. Later he
came to Chicago and served as vice
president of the First National Bank.
In 1907 he organized the National City

Bank of Chicago and became its first
president, which office he held until Jan
uary, 1924, when he became chairman
of the board of that institution.
Mr. Woodruff represents the third
generation of a family of bankers. At
the age of twenty-six he became presi
dent of the First National Bank of
Joliet, at that time being the youngest
bank president in the United States.
He held this office until he became vice
president of the National Bank of the
Republic in 1922. Under Mr. Woodruff’s
supervision the Joliet Bank grew from
a small institution of $500,000 in 1906
to the largest bank in Illinois outside of
Chicago. A year ago Mr. Woodruff suc
ceeded Mr. Lynch as president of the
Republic and he now becomes vice
chairman of the consolidated institu
tion. During the last twenty years Mr.
Woodruff has studied banking practices
and finance in practically every country
in the w’orld. In 1909 he inspected all
the railroads in China in the interest of
a group of international bankers. The
next year he studied conditions in every
country in South America for a group
of American bankers who were inter
ested in establishing foreign branches.
In 1913 Mr. Woodruff visited the prin
cipal countries in Europe as a member
of the Rural Credits Commission under
the Taft administration. Mr. Woodruff
is an ex-president of the Illinois Bank
ers Association and in 1919 he organized
and became the first president of the
Illinois State Chamber of Commerce.
Mr. Otte, who becomes president of
the consolidated institution, like Mr.
Forgan, began his banking career at the
age of fifteen, when he entered the em
ploy of the old Union National Bank of
Chicago, which institution he followed to
the First National Bank. After some
years with this latter institution, Mr.
Otte organized and became first presi
dent of the Union Stockyards State
Bank of Chicago. He later organized
and became president of the Lake View
Trust and Savings Bank of Chicago.
When Mr. Forgan organized the Na
tional City Bank of Chicago in 1907 Mr.
Otte became cashier. He was later ad
vanced to the vice presidency and a year
ago became president. Mr. Otte has
earned his way from office boy and now
becomes president of one of the largest
banks in the West.

January, 1925

THE

NORTHWESTERN

BANKER

The Butcher W on t Do It So W h y
Should the Banker?
NCE I knew a butcher. He was
an enterprising, far-seeing butch
er who was determined to build
up a future business of great magnitude.
Then the war came along and the pack
ers raised the price of meat.
“ This is terrible,” said the butcher to
himself, “ but I’ll just have to raise the
price to my customers.”
As he muttered this, in walked little
Mr. Smallpenny for a dime’s worth of
steak. Now a dime’s worth of steak never
was too big an armload for an able-bodied
man, but the day that he raised the prices
it seemed to the butcher, as he shaved oft'
a tiny atom of the: red meat, that a dime’s
worth of steak belonged in the category of
the celebrated molecule that we’ve heard
so much about but have never seen.
Mr. Smallpenny had his eye on the scale
—or, rather, upon the meat.
Now, the butcher, a kindly man was he.
While not so highly regarded as Longfel
low’s village blacksmith, yet he never had
been called a thief-—at any rate, not to his
face.
His eye shifted to Mr. Smallpenny; then
to the meat on the scale; thence back to
Mr. Smallpenny again. What was he to
do? What would Mr. Smallpenny say
when the news was broken that the little
red spot on the big marble scale consti
tuted a dime’s worth of steak? The ter
rible truth dawned. Why, Smallpenny,
his friend and daily customer, would go
out and proclaim to the world that he, an
honest butcher, was a robber, pirate, and
probably everything else that occurred to
his indignant mind. He would say that
alongside of the butcher, Captain Kidd
was a philanthropist. No, it could not be.
It could not be.
Then was born a wonderful idea: He
would sell the meat below cost!
Yes, it was a great idea. Then Mr.
Smallpenny wouldn’t run him down to his
friends. And—happy thought—some day
Mr. Smallpenny may have a big family
and want a dollar’s worth of steak instead
of a dime’s worth. Big oaks from little
acorns grow.
So he took his cleaver in hand and dealt
the bovine carcass a mighty blow— a
blow that disengaged a big juicy steak. A
moment later, with a package under his
arm, Mr. Smallpenny grunted a forced
goodnight.
It was a great idea? He would use it
on all his small customers. Miss Littlepurse, Mr. Harduppy, Mr. Tightjeans,
and hundreds of others. A great idea to
save their good will— and some day they
will have big families!
Time went on, and the butcher didn’t

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Federal Reserve Bank of St. Louis

B y Dale Graham
Chairman Committee on Analysis of Accounts
Missouri Bankers Association

go broke. His big customers paid dearly
and carried the load. Neither did he get
rich, but that’s beside the point. The im
portant fact is that Mr. Smallpenny didn’t
come through with the big family. Miss
Littlepurse is still a spinster, buying a
dime’s worth of steak. Mr. Harduppy
moved away, and Mr. Tightjeans is trad
ing with a new butcher shop that opened
up a block nearer his home.
“ This is all wrong,” declared the right
eously indignant butcher. “ Of all the
ingratitude! For years, I served these
people at.a loss, and what have I gained?”
Mr. Smallpenny buy more meat? Why,
what use would he have for it? Miss Lit
tlepurse? Same answer. Mr. Harduppy
had moved away; nothing to do about that.
Ah, Mr. Tightjeans! He now had a big
family and was buying lots of meat—
though down at the other shop. So the
butcher hunted up Mr. Tightjeans.
“ Now, look here,” he began, “ for years
I sold you meat below cost because I
wanted your good will and because you
might be a big meat buyer some day. To
day you have a good-sized family and buy
a lot of meat, but you ignore me and trade

with my competitor down the street. I
want an explanation.”
Mr. Tightjeans looked bored. “ Why,
old dear,” he said, “ I never was an object
of charity. Why did you sell me meat at
less than cost ? Why didn’t you earn your
profit while you could? I am looking for
convenience now, not paying obligations
I never knew I incurred.”
So the butcher— did I say butcher? Oh
pshaw ! What a foolish mistake! I must
apologize to the reader. It got the story
all mixed up—all wrong, in fact. How
ridiculous! Can you imagine a butcher
doing a trick like that? That’s a good
jok e!
Yes, I must apologize. It wasn’t the
butcher; it was the butcher’s financial ad
viser— it was the Banker!
II
Yes, it was a banker I knew, instead of
a butcher. He was an enterprising farseeing banker, who was determined to
build up a future business of great mag
nitude.
Then the war came along and raised—
more than doubled— his operating casts—
clerk hire, stationery, rent, machinery—
everything went up.
Now Mr. Smallpenny had an account
with this bank. So did Miss Littlepurse.
Likewise, Mr. Harduppy, Mr. Tightjeans,

THE

and thousands of others like them. Oh,
yes, and they were checking accounts. In
fact, they were the checking-est checking
accounts you ever saw. The thing that
bothered them the least was the fact that
there often wasn’t money enough to pay
the checks.
The whole bunch of accounts didn’t av
erage a hundred dollars apiece. Much
less than that. Just the same, their own
ers asked for a big three-to-a-page check
books; some wanted their names printed
on the margin. And deposit slips— Oh,
the way the used deposit slips completely
demoralized the scratch pad industry.
At about- two o’clock, in they came!
Some came to draw five dollars; others
came to make a deposit to cover a check
written two days before. They formed a
crowd at the windows, and didn’t like it
because they had) to wait. The big cus
tomers had to wait, too, but they were

NORTHWESTERN

BANKER

like the owl—they didn’t say anything,
but did a lot of thinking. But not so
with the check-coverers! They conversed
about how terrible the service was getting
to be, about how more windows should be
opened, about how they expected to take
their accounts away if things didn’t im
prove.
The banker sat at his desk. He had
just looked at a comparative expense
sheet. Unquestionably, costs had doubled.
He sighed and laid down the report to
pick up a stack of checks that called for
the use of the bookkeeper’s red ink.
His eye shifted to the long line of
Smallpennys clogging the lobby, then
down to the checks he was about to re
turn “ N.S.F.,” then back again to the line
of two-o’clockers. He suspected the truth.
He took his pencil and scratched some fig
ures on his blotter. Yes, it was unques
tionably true: He was losing five or six

January, 1925

dollars a year on nearly every one of those
accounts!
But what would Mr. Smallpenny say
if the idea were sprung that he, Augustus
Jerome Smallpenny, was carrying an ac
count that wasn’t worth its ledger sheet—
that wrasn’t, in fact, a great boon to the
bank? Why, he would say it was ridic
ulous. Impossible! Never heard of the
like! Been a customer for fifteen years,
always did suspect the bank was a bloodsqueezer. Intended to make a change, but
never got around to it. Was solicited only
last week by two other banks. Will draw
his balance today, take it to the bank
across the street, and go out and tell the
world what kind of a place this is.
The banker shuddered. He knew he was
right, but how could he prove it to Mr.
Smallpenny ?
Now, the banker, a kindly man was he.
(Continued on page 35)

Union Trust Entertains 2,500 Patrons
By W . H. Maas
M

ORE than 2,500 men, women and
children, prominent in Chicago’s
business and social life, were
guests of the Union Trust Company in
historic Orchestra Hall recently, when
there was staged a novel entertainment
of music and speaking under auspices of
officers and directors of the institution.
The evening’s entertainment, which is
expected to set a precedent in customer
relationship among large banking houses
throughout the country, brought forth
an attendance which completely filled the
theater. Late comers were cared for
through several hundred chairs placed
on the stage directly behind the singers
and speakers.
Promptly at 8 :20 Mr. Henry A. Wheel
er, president of the bank, appeared on
the stage and with a few well chosen
remarks welcomed the audience to the
Union Trust Company’s first big party.
He pointed out that the sole purpose of
the affair was to bring together at least
a part of the Union Trust Company’s
“ big fam ily” for an evening of enter
tainment and in an atmosphere where
they could lay aside their respective
cares and worries.
That the guests
were in a happy frame of mind and ap
preciated the invitation, was attested
by the applause from all sections of the
audience which greeted Mr. Wheeler’s
remarks.
Soloists of international reputation,
who thrilled the guests with more than
an hour’s entertainment, included Miss
Jessie Isabel Christian, soprano; Jacques
Gordon, violinist; John Robbins, bari
tone; Walter P. Zimmerman, organist.
The following musical program was ren
dered :
Organ Solo—“ Song of Triumph,”
.....................................Mr. Zimmerman

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Federal Reserve Bank of St. Louis

Chicago Representative, Northwestern
Banker

R A LPH PARLETTE,
noted humorist, who helped entertain at
the Union Trust “ p a rty ” in Orchestra
Hall, Chicago.

Aria— Vision Fugitive— from the Opera,
“ Herodiade. ”
I ’ll Sing Thee Songs of Araby— The
Wreck of the “ Julie Plante,”
............................................ Mr. Robbins
Praeludium and Allegro— Oriental Ro
mance— Spanish Dance— From the
Canebrake......................... Mr. Gordon
Elle et moi—Wings of Night— The Lit
tle Shepherd’s Song.
Aria—Bell Song—from ‘ ‘ Lakme ’ ’
.......................................Miss Christian
Ralph Parlette, nationally known hu
morist and philosopher, was the prin

cipal speaker of the evening. Following
a brief account of his recent trip to Eu
rope, Mr. Parlette brought forth many
laughs and frequent applause with his
homely philosophy and spontaneous hu
mor. He is well known as a speaker at
state bank association conventions and
meetings of Chambers of Commerce.
Chicago newspapers, as well as the
Associated Press, carried accounts of the
event, which is said to be the first of its
kind ever held in America. Weeks of
planning and arrangements far in ad
vance of the entertainment were made
by Paul L. Hardesty, manager of pub
licity, in cooperation with other officers
of the bank.
“ We are very gratified and feel well
repaid as a result of this new effort
in customer relationship,” said Mr.
Wheeler. “ With no precedent to follow
we were naturally confronted with many
problems in arranging the affair. We did
not broascast our message about it to the
general public in advance of the meeting
but extended the invitation to our cus
tomers, both by direct mail and by bulle
tins posted in the bank, as wTe knew that
the theater’s seating capacity was
limited.
“ Hundreds of letters have been re
ceived by our officers from guests pres
ent, thanking the bank for providing a
wholesome evening of entertainment.
The reaction from all sources indicates
that everyone had a good time and felt
well repaid for attending.
The Union Trust Company, which only
a few months ago purchased the Chicago
Tribune Building at Madison and Dear
born streets, and which structure now
carries the name of the trust company,
was organized in 1869. F. H. Rawson
is chairman of the board.

January, 1925

THE

NORTHWESTERN

BANKER

Banking and Insurance—Teamwork That
Helped Make the Northwest Smile
“ It doesn’t pay to sell the U. S. short” said one Iowa surety
company—and they can prove it now
“ T T DOESN’T pay to sell the United
States short!” One of America’s
greatest business men once made
this famous statement and the passing
years have failed to disprove it.
Just as truly, this statement applies to
the great Northwest, despite the fact
that the two Dakotas, Montana and parts
of Minnesota a year or two ago were
face to face with economic conditions as
adverse and puzzling as have ever con
fronted any group of states in this coun
try. That they have fought the good
fight and won is evidenced now by the
increasing bank deposits, and reports of
better business emanating from those
areas.

By R . W . Moorhead
Editor Northwestern Banker

banks in these states began to experi
ence difficulty. They were not only con
fronted with deflation, but in many lo
calities there were poor crops and farm
ers were unable to meet their notes. The
bank failures with which everyone is
familiar then took place.
“ I once was informed by a man con
nected with a large implement indus
try,” says Mr. Taylor, “ that many of
their collections through South Dakota
was paid in cash, the farmer stating he

The president of that corporation in
vited the surety companies for a confer
ence. Mr. Taylor attended. “ I could
readily see,” he says, “ that it was the
solution of the situation. Officers of the
corporation asked the surety companies
for their cooperation and in turn assured
us that we would have their cooperation
in helping us to underwrite the business
intelligently.

The time is now at hand when one
may tear aside the veil and study the in
teresting phases of the transition period
through which the great Northwest has
struggled. In such a study no two lines
of business offer a more vivid background
than banking and insurance, affiliated
lines of commerce that have fought hand
in hand for economic victory in the grain
belt.
Especially pertinent and interesting is
a resume of the depository bond situa
tion, and to W. L. Taylor, vice president
and general manager of the Federal
Surety Company, of Davenport, one of
the outstanding surety companies of the
west, we are indebted for much of the
information that follows. Mr. Taylor,
too, has found to his own satisfaction
that it doesn’t pay to sell the United
States, or any part of it, “ short.”
As early as 1921, the depository busi
ness had its troubles. Banks held much
paper of inflated value, and some one had
to stand the shrinkage. Banks that had
slow paper were eager to get public
money. That gave them more cash to
take care of their needs, but the time
came when the public money had to be
paid out, or, when public officials
changed, it had to be turned over to their
successors, causing great depository
losses.
In the past, Mr. Taylor explains,
surety companies have found depository
bonds profitable particularly in the rich
states of the Northwest. The rates
charged were one-half of 1 per cent on
the penal sum of the bond, adjusted at
the end of the term to one-half of 1 per
cent on the daily average balance with a
minimum of $2.50 per thousand on the
penal sum of the bond. In 1922 the

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Federal Reserve Bank of St. Louis

giving relief to the banking industry of
these states. We had had the Federal
Land Banks, but they were limited to ac
cept only real estate security, and the
people that needed help already had
their real estate mortgaged for more
than they could now get. It will be re
membered that an organization, which
was known as the Agricultural Relief
Corporation, was organized, and estab
lished with headquarters in Minneapolis.
This organization was managed by prom
inent bankers from the various states.
They proceeded at once to give relief by
sending their representatives into a com
munity to diagnose the situation and
then prescribe a remedy.

W. L. TAYLOR

preferred to keep his money at home to
depositing it in his local bank.”
Coincident with bank failures, the
surety companies began to suffer. What
had once been the “ cream” of the busi
ness suddenly became dangerous to the
extreme. Some companies even discon
tinued writing depository business, while
others cancelled their bonds altogether.
Things went on until finally, it will be
remembered, congress tried to work out
ways and means for relief. About that
time President Coolidge suggested that
a private corporation, unhampered bv
federal or state rules and procedure,
should be organized for the purpose of

‘ 1There were communities in which all
of the banks had failed. Representa
tives of this relief corporation went into
those communities, called the stockhold
ers o f the defunct banks together and
told them how they could get help to
reopen their banks. A few of these
banks reopened, confidence was restored
in the community, and what money many
of the farmers had hidden out in their
homes began to come back into the
banks, and the bankers could see a ray
of hope.
“ After attending the conference of
the agricultural corporation I made up
my mind that we would go with them
and while our eastern friends had de
serted us on matters of reinsurance, in
other words, we did not get one dollar
of reinsurance on the smaller banks in
these states, we decided to go it alone,
take what we could conservatively carry
ourselves, and the result has been that
we have not suffered a dollar of loss by
a bank failure since that time.
“ Now, while all the other companies
simply pulled out and said, ‘ we will go
out and stay out until the communitv
gets back on its feet.’ we staved and
helned put the community on its feet,
and are still helping. Our files will dis
close that we wrote bonds for banks
that enabled them to get public monev

THE

which absolutely saved the institutions.
Not only a few, but hundreds of them,
and we are still carrying many of these
banks and will continue to carry them
as long as they want our assistance.
“ There were, of course, many banks
that were poorly managed and they went
out of business, but that was no reason
why we should discriminate against
the bank that, while it had been con

NORTHWESTERN

BANKER

servatively managed, was in trouble by
reason of crop failure or other condi
tions beyond its control.
Perhaps
there were too many banks in some lo
calities and perhaps if careful considera
tion had been given to the consolidation
of some of these banks, losses could have
been averted. But wherever the com
munity needed a bank there has been
one re-established and we are doing all

January, 1925

we can to help such institutions get
public money.
“ Does our company have faith in the
great Northwest? Of course,” says Mr.
Taylor. “ We don’t believe in selling
‘ short’ when the grain states are con
cerned and we’re mighty proud of the
faithful work which was our share in re
building the economic structure of the
Northwest ! ’ ’

How the Law Looks Upon “Holder
in Due Course'”
Question in many cases is whether a certain party is bona fide
holder in due course for value
HE words, ‘ ‘ holder in due course,’ ’
are often used when a transaction
involving the transfer of a note is
brought before the court. The sole ques
tion in many cases is “ whether a certain
party is a bona fide holder in due course
for value.”
A uniform Negotiable Instrument Law
has been adopted by practically all the
states in the Union so that notes and
other negotiable instruments can be
transferred freely from one party to an
other, either within or to another state.
Negotiable papers with the indorsement
of various parties thereon pass through
many hands oftentimes before they are
presented to the banker for payment. It
is accepted as it appears to be on its
face, due to the laws governing com
mercial paper. In other words, it is sup
posed to be what it purports to be. A
negotiable instrument has been termed
a ‘ ‘ courier without luggage. ’ ’
A bank held a promissory note as
indorsee and being unable to secure pay
ment from the maker of the note,
brought action in court to secure a set
tlement. The maker of the note answered
the suit, contending that the note was
obtained from him by fraud and duress
on the part of the payee.
At the trial, the bank proved execu
tion and nonpayment of the obligation
and rested. The maker of the note in
troduced evidence to show that he was
forced and obliged to give this note to
procure payee’s release of a building
from a lien for work done and materials
furnished thereon. The payee had pre
sented a bill for extras over and above
the contract price, which was questioned,
and the defendant in this, action made
the note for the full amount of the dis
puted balance “ on the understanding”
that payee would “ adjust these items
by a conference to be had later.”
The maker of the note afterwards
sought to have such conference, but payee
“ refused to meet up with him or in
any way give credit on said note.” It
--as understood, pending such adjust-

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Federal Reserve Bank of St. Louis

By the Legal Department
•luiiiiiiiiiiiiiiiiiiiiiiiiiiuMimiiiitiiiiiiiimiimiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimmiiiiiiiiii

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 w ill 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 furnished 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.
miiiiiimiiiuimimmiiiimiiiiiiiiiiiimiiimiiiiittiiimiitiiiiiimmiimiitiiiimiimiiiiiitiMiitmimiitmiittitmii

ment, “ only partial payments by the
month should be made in the indebted
ness.”
This offer was objected to and the evi
dence excluded, for the reason that.de
fendant did not propose to show the
bank had notice of the facts stated in
the offer.
The jury found for the bank. The
maker of the note took an appeal to the
Supreme Court.
The higher court held that the facts
given did not show the note was frau
dulently obtained by payee, or that his
negotiation thereof was a breach of
faith. The provisions of the Negotiable
Instrument Act determines the rights of
the parties in this action. Section 59,
of the Act, provides that, where it is
shown the title of any person, who has
negotiated the instrument, is defective,
the burden is on the holder to prove he,
or someone under whom he claims, was
a holder in due course without notice of
such defect.
The provisions of Section 55 of the
same Act are as follow s:
“ The title of a person who negotiates
an instrument is defective within the
meaning of this Act, when he obtained
the instrument or any signature thereto
by fraud, duress and force, and fear, or
other unlawful means, or for an illegal

consideration, or when he negotiates it
in breach of faith or under such circum
stances as amount to a fraud.”
Under Section 59, if defendant proves
facts constituting fraud, the burden
shifts to plaintiff; to show that he was
a bona fide holder in due course for
value. The weakness of defendant’s o f
fer is that, although it charges fraud,
the specific facts out of which it is al
leged to arise are wholly insufficient to
establish the allegation. Defendant was
aware the note sued on was a negotiable
instrument, transferable by delivery, and
in the ordinary course of business might
be discounted in the bank. Notwith
standing this knowledge, he imposed no
restriction or condition on the right to
negotiate, but gave it, relying upon
payee’s promise to adjust disputed items
by a conference to be held later.
The subsequent refusal of payee to
confer, was a mere breach of an “ under
standing” and not an act rendering a
previous negotiation of the note a breach
of faith or constituting the original ob
taining of the instrument a fraud on the
maker within the meaning of Section 55
of the Negotiable Instruments Law.
Fraud, it is true, avoids all contracts;
but fraud consists in false representa
tion of things as facts, which are not
such, or in deceitful concealment of ex
isting facts, neither of which is found in
the evidence. A promise is not, in itself,
a false and deceitful representation.
In view of the Negotiable Instrument
Act, Section 59 provides that every
holder is deemed prima facie to be a
holder in due course, it has been held in
an action on a note that it is not neces
sary for the party bringing the action
to aver that his transferor took the note
in good faith for value, or that it was
a holder thereof in due course.
The burden of proof was not on the
plaintiff in this case, for the reason that
the facts which the defendant offered
to prove did not show fraud on the part
of the payee, but showed merely a breach
of understanding.

January, 1925

THE

NORTHWESTERN

BANKER

|Mlllllll!liniill!ll!lllllll!!l!l!!llllllll!!l!|||||||||||||!||||!||!|||||||||||||i|||||i|[||||n||l||||lllllllllll!lllll!!llllimilllllllllllimimiIII!millllMimill!l!illlll!llllllllllllllimillllll^

T en Years A g o Today
Brief bits of news from The Northwestern Banker, January, 1915

W. E. Briggs, who for some time has
been vice president of the Stock Yards
National Bank of South St. Paul, was
recently elected a vice president of the
Northwestern National Bank and took
up his duties January 1, 1915.
In the office of vice president of the
Northwestern National he will not only
head a department that will handle the
bank’s cattle paper business, but will
direct educational work as well.
Mr. Briggs has handled an annual total
of $3,000,000 to $4,000,000 in cattle pa
per in his banking position at South St.
Paul and has a record among cattlemen
and bankers of the Northwest for great
success in handling this paper, his losses
being so small as to be inconsequential.

—1915—
A. N. Mathers, president of the Ber
ing National Bank, Gering, Nebraska, at
the last convention of the Nebraska
Bankers Association was elected to mem
bership on the executive council for
three years. Mr. Mathers has a large
acquaintance over the state which will
materially aid him in efficiently carrying
on his work. He speaks in high terms
of the N o r t h w e s t e r n B a n k e r and says
he finds it a splendid banking journal.
—1915—
Leavitt & Johnson National Bank,
Waterloo, paid $1,300 in gold to 23 prize
winners in their recent corn contest,
which was one of the most successful as
well as the largest ever held in that part
of the state. Twelve of the prize win
ners planted Reid’s Yellow Dent, a va
riety that is especially adapted to that
section of the country. Speeches were
made by several officers of the bank, as
well as other prominent men of the com
munity.
—1915—
The Central Trust Company of Illinois
has issued a little pamphlet entitled
“ Digest of Documentary Stamp Tax,”
which was imposed under the schedule
A of the War Revenue Act. I f you have
not received “ yours” drop a line to W.
G. Edens, assistant secretary of the com
pany, and he will be glad to mail you
one.
—1915—
D. W. Killeen, president of the First
National Bank, Schuyler, Nebraska, in
a recent letter said: “I wish to say that
I enjoy reading your paper very much.
I consider it one of the best bankers’
papers published in the west. I think
you are more prompt in reporting the

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Federal Reserve Bank of St. Louis

news and organization or change of
banks than any paper published in the
west, and I wish you continued success
in your publication. I f I can be of any
service to you in assisting you or your
paper, I shall be pleased to do so.”
—1915—
The Abram Rutt National Bank of
Casey, Iowa, has just entered into a con
tract with the Lytle Construction Com
pany, bank specialists of Sioux City,
Iowa, for the construction of a fine new
bank building.
The plans call for one of the finest
buildings in the state. The building will
be thirty-one feet six inches wide and

sixty feet long and will have a twentyfoot ceiling. It will be made entirely
fireproof. The exterior will be a combi
nation of fine Roman brick and white
glazed terra cotta. On account of the
slope of the street a large portion of
the foundation wall will be exposed.
All of this base will be made of granite
terra cotta.
—1915—
F. S. Shaw, newly elected auditor of
the state of Iowa, has announced the
following personnel of the State Bank
ing Department: A. O. Wolever will be
chief of the department. L. M. Barlow
of the Iowa Trust & Savings Bank, Des
Moines, is to succeed R. E. Jackson as
examiner. The reappointment will be J.
J. Amen, Cedar Rapids; H. M. Cormany,
Woodbine; E. B. Wilson, Des Moines,
and V. M. Miller, Adel.
—1915—
The First National Bank, Minneap
olis, has recently celebrated its fiftieth
anniversary. The growth of the First
(Continued on page 54)

How Stockholders Can Help
Increase Bank Deposits
J. H. Welch, cashier, Elkhorn Valley
State Bank, Stanton, Nebraska: “ One
of the best ways for stockholders to help
their institution is to boost all similar
and well conducted businesses and never
knock on their competitors.
“ Stockholders have the opportunity of
meeting prospective customers on a
different ground and can thus approach
them in a much more effective way than
can the active officers of the bank. This
is especially true in a farming commu
nity.
‘ ‘ Our stockholders and directors have
secured many good accounts by personal
solicitation, than which there is no more
effective way, and by satisfactory deal
ings with them in a business way.”
— $—
Adrian State Bank, Adrian, Minne
sota: “ Our directors and stockholders
have many times sent us customers,
sometimes bringing them in but mostly
by recommending this bank to them as
newcomers to the community. Several
of our local stockholders make it a point
to do this. We sell ourselves to them
by talking to them personally and urg
ing them to speak a good word for their
bank whenever they have a chance and
to let us know if there are newcomers
in the neighborhood or other likely
prospects. This has been a very satis
factory plan of operation for us.”
— $—
Security National Bank, Sioux Falls,
South Dakota : ‘ ‘ Our stockholders and
directors have helped us and have se
cured new accounts by saying to their

friends that they would appreciate it
personally if they would start an ac
count at the bank they were interested
in.
“ Personal solicitation is the best way
to secure accounts.”
— $—
John H. Hogan, president, Des Moines
National Bank: “ Our experience in
this connection has not been unusual,
and I do not believe that I have much
to offer on the subject: We have always
had the active interest and support of
our stockholders to a reasonable degree,
and feel that their influence has been a
potent one.. A letter to our stockholders
periodically has represented about our
only effort in that direction.”
—

$ —

R. J. Felken, cashier, Ramona State
Bank, Ramona, South Dakota: “ Stock
holders can secure new accounts by per
sonal solicitation and in many instances
personal influence.
“ Stockholders could be sold on this
idea by a little missionary work on the
part of the officers and directors and no
doubt results could be seen after a year’s
time had elapsed.
“ We can trace a fair number of ac
counts which have been placed on our
books as a result of personal influence
or soliciting by our stockholders. Even
in our country community, where the
volume of business is somewhat limited,
I am sure that if some special efforts
were put forth in this direction that sat
isfying results could be obtained.”

THE

NORTHWESTERN

BANKER

January, 1925

First National in N ew Home
AD the sturdy Iowa pioneers,
whose covered wagons entered
Iowa territory almost a century
ago, rolled down the streets of Daven
port, December 10, 1924, they would have
gasped in amazement. Were they to
have witnessed the thousands of people
swarming in and out of the new tenstory super-hanking home of the First
National Bank last month, they would
have thought the scene a part of the
“ Arabian Nights.”
The occasion was the three-day open
ing of the new “ living room” of the
“ first” First National Bank in the
United States, the festivities being man
aged by Ringmaster A. F. Dawson, ably
assisted by Messrs. Green, Lane, Schmidt,
Tornquist and other bank officials and
directors. The three-day party was cos
mopolitan, indeed, Davenport people by
the thousands did their share, the Iowa
banking fraternity sent scores of repre
sentatives, and the celebration assumed
somewhat of a state and national aspect,
with telegrams from President Coolidge,
Secretary Mellon, Governor Kendall and

Officers and directors of the First Na
tional Bank— President, A . F. Dawson;
vice president, Joe R. Lane; cashier,
Irvin J. Green; assistant cashier, C. F.
Schmidt; assistant cashier, P. A . Torn
quist. Directors: A . F. Dawson, Joe R.
Lane, Irvin J. Green, George W . Cable,
Charles Gilchrist, Frank D. Throop,
George S. Johnson, Frank W . Mueller,
M. N. Richardson, Carl Richter, August
E. Steffen.

other dignitaries, expressing best wishes
to the “ first” First National Bank in
the United States.
The formal opening on Thursday
morning, December 10th, was prefaced
by a splendid banquet Wednesday eve
ning in the gold room of the Blackhawk
Hotel, attended by hundreds of bankers,
financial magazine and newspaper men,
and Davenport business men.
President A. F. Dawson of the First
National presided as toastmaster at the
big gathering and in his opening address
briefly related the historic career of his

big institution, the first national bank in
operation in the United States.
That the growth of the First National
since it was founded in 1863 has been the
growth of the United States and that its
development reflects the development of
the country was the theme of an address
by Clifford De Puy, publisher of the
N o r t h w e s t e r n B a n k e r of Des Moines.
Other speakers were Cashier I. J.
Green, who told how the banking room
and office building was designed for
the convenience of the public; John Soller
of the general contracting firm who erect
ed the building; E. L. Harris of the Fed
eral Reserve Bank of Chicago; F. C. Burt,
editor of Building and Building Manage
ment; President George Mitchell of the
First National Bank of Maquoketa; Vice
President J. L. Giessler of the American
Savings Bank of Muscatine; Vice Presi
dent Ray Nyemaster of the American
Commercial and Savings Bank of Daven
port and W. B. McIntyre of the Ameri
can Trust and Savings Bank of Rock
Island.
Rollo L. Rilling, the bond department

B eautiful and m agnificent, are w eak w ords in describing t h e new home o f the F irst National B a n k at D avenport, Iow a,
opened last month. A bove are pictured the exterior o f the new building and the gorgeous m am d° ° r °4 s id e n t ^
F Dawson
is the main banking lobby and to the righ t the im pressive directors’ room and the private office o f President A. 1 . Dawson,

who is seated at the desk.

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

January, 1925

THE

NORTHWESTERN

BANKER

For 56 years—

s
h
C

one o f

most favorably known
commercial banks

1869

Frederick H. R a w s o n

1925

H arry A . W

Chairman of the Board

heeler

President

UNION TRUST
CO M PANY
C H IC A G O

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

M O R E

T H A N

$ 7 5 , 0 0 0 , 0 0 0

THE

NORTHWESTERN

BAN K E R

A nnouncement
T O T H E B A N K E R S OF IO W A
The J. H. W elch Printing Company,
o f Des Moines, wishes to announce
the opening o f a Ban\Service Depart'
ment on January ist.
This new department will be under
the direction o f

M r . O tis L. J ones
who for several years has been asso'
dated with the Des M oines 'National
Ban\ in different capacities.

M r. Jones’ experience and training in
ban\ management and accounting em
ables him to be o f much service to the
ban\s o f this section from an advisory
standpoint.

There will be no charge

nor obligation for any services thus
rendered, and we invite your inquiries
on any problems you may have.

“ Yours for Service”

J. H. Welch Printing Company
P R IN T E R S

S T A T IO N E R S

B IN D E R S

L IT H O G R A P H E R S

STE E L C A SE
l o o s e -l e a f

- d e v i c e s -a n d
.ACCO U N TIN G -S YS TEM S

1166-68-70 Sixth Avenue

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Federal Reserve Bank of St. Louis

Business Equipment

Des Moines

January, 1925

manager of the bank, sang several solos
and the Kiwanis quartet likewise enter
tained with several selections.
The million-dollar home of the First
National has been described as a “ bunga
low living room.” Certain it is that its
elegance and beauty has not detracted in
the least from its homelike qualities.
Towering ten sories above the pave
ment, it is indeed a noteworthy addition to
the business district of Davenport.
Standing a short distance from the
structure, one is struck by the grace and
beauty of its simple classic lines.
Corinthian pilasters rise up between
the mighty arched windows, but despite
the chaste beauty of all this the eyes are
drawn towards those magnificent bronze
doors. The workmanship on the doors is
declared to be the finest on any building
in the West devoted to commercial pur
poses.
Art work in the carving around the
doors, symbolic of the various industries,
also serve to make the doorway a dis
tinctive feature of a distinctive building.
As the eyes roam upward over that ex
panse of white Bedford stone, brought
from the quarries of Indiana, they are at
tracted by another wonderful feature—
the copper cornice. Modeled from the
famous copper cornice on the Gorham
building in New York City, it is declared
to be the first of this type ever placed on
a building in the West.
Deserving more than a casual inspec
tion is the handsome and unusual banking
room.
The general effect sought by President
Dawson and the other officers was to cre
ate an atmosphere of hospitality. Con
ventional banking room designs in marble
were passed by in favor of color. There
is color in the ceiling, color in the walls,
color in the floor—color it seems even in
the air!
In their attempt to make “ a bungalow
living room” out of this great 54 by 100foot hall, most of the color scheme is in
blue, grey and antique gold with just
enough touch of other color to give the
room life. The floor is in varicolored pat
terns of combination marble and cathedral
tile.
The offices for the executives' and the
cages of the tellers are built around a
hollow square. There are 18 wickets for
the tellers, including a special window for
the children. Steps lead to a marble plat
form from which the child can talk with
the banker “ just like a grown-up.” This
is but one of a thousand and one little
features of convenience to be noted in the
banking room.
Perhaps the best example of the way
the bank is attempting to serve the city
of Davenport is the establishment of a
public convenience station. This little al
cove, located off the main lobby, contains
a telephone, writing material, a drinking

•January, 1925

THE

fountain and a number of comfortable
chairs.
Another feature for public convenience
will be the community room in the base
ment which will be available, through the
courtesy of the bank, to various organiza
tions for meetings.
Organization of the First National
Bank, the first institution of its kind in
the United States, dates back to 1863
when congress, forced to seek ways of
financing a war of self-preservation, en
acted the National Currency Act, termin
ating an era of “ shin-plasters” and state
currency of doubtful value which marked
the period dating from 1836 when the
charter of the Second bank of the United
States expired.
The First National Bank opened its
doors on June 29, 1863, in a building at
Second and Main streets located on the
same site where the bank’s new home now
stands, its massive columns of masonry
reaching skyward.
For two days the First National Bank
was the only bank in the United States
operating under the provisions of the Na
tional Currency Act. On July 1st several
other national banks opened their doors
and thereafter the number increased rap
idly.
Although the bank dates its existence
from the day when it opened its doors
under the National Currency Act charter,
it really came into existence several
months previous when Austin Corbin, one
of Davenport’s early financiers, withdrew
from the banking house of Macklot & Cor
bin, and with George S. C. Daw organized
a bank in March, 1863, under the name
of Corbin & Dow.
This bank was located in the “ Old Mar
ble Bank” building at Second and Main
streets, which was a few months later de
signed to become the first home of the
First National Bank.
A partial list of the bankers from Iowa,
Illinois and miscellaneous states who at
tended the First National opening follows:
Frank H. Schafer, president Port Byron
State Bank, Port Byron, 111.; I. S. White,
State Bank o f Rock Island, Rock Island,
111.; K. T. Anderson, cashier State Bank
o f Rock Island, Rock Island, 111.; First
Trust and Savings Bank, Rock Island, 111.;
Scott County Savings Bank, Davenport,
Iow a; F. L. Pearson, cashier West Branch
State Bank, West Branch, Iow a; B. L. M c
Kee, cashier Muscatine State Bank, Mus
catine, Iow a; Ed Kaufmann, American
Commercial and Savings Bank, Davenport;
Ray Nyemaster, American Commercial and
Savings Bank, Davenport; H. P. Oetzmann, American Commercial and Savings
Bank, Davenport; F. A. Johnson, Am eri
can Commercial and Savings Bank, D av
enport; Clarence Savings Bank, Clarence,
Iow a; Pleasant Prairie Savings Bank,
Pleasant Prairie, Iow a; J. L. Giesler,
American Savings Bank, Muscatine, Iow a;
W. D. Harris, Union Savings Bank, W ilton
Junction, Iowa; Dr. A. R. Leith, Union
Savings Bank, W ilton Junction, Iow a;
Gustav Gradert, cashier Iowa State Sav-

(Continued on page 50)

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

NORTHWESTERN

BANKER

WJien Buying
A set of Harness—
You don’t go
To a grocer for i t ;
You hunt up
A harness shop
Because
They make it,
Sell it, and
Know all about it.
If you find that
They know less about it
Than you know,
You go to another shop
Where they know more.
All rig h t;
When planning to remodel
Or erect a new
Banking home it should
Be bought on
The same plan.
It’s our business;
We plan it,
Make it,
Live it 365 days a year.
So we believe
That we know
Those things
Which are necessary
To make our service
Acceptable and profitable.
Hundreds o f bankers
In the Northwest
Evidently believe the same
Or they would be going
Elsewhere for Bank Fixture Advice.

is n e r Q i

K FIXTURE H E A D Q U A R T E R S

O/taries(Pity, r
Ja.

THE

NORTHWESTERN

BANKER

January, 1925

Personal Paragraphs

A Specialized
Service
for

Banks

and

Bankers

which is the result of more
than sixty years of experi
ence is offered by

T H E F IR S T
N A T IO N A L
B A N K OF
CHICAGO
and

T H E F IR S T
T R U S T and
SAVINGS
BANK
Complete facilities are pro
vided for active and inac
tive accounts, collections,
bills of lading, investments
and foreign e x c h a n g e
transactions
F R A N K 0 . W E T M O R E , P resid ent
F irst N ational B ank o f C hicago
M E L V IN A . T R A Y L O R , P resid en t
F irst T ru st and Savings Bank

Combined Resources
Exceed $350,000,000

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Federal Reserve Bank of St. Louis

President C. J. Wohlenberg of the
Iowa Bankers Association has announced
the dates for the 1925 convention as June
15th, 16th and 17th at Dubuque. Hotel
Julien will be headquarters. Dubuque
bankers and the city Chamber of Com
merce are already planning for the event.
—$—
Karl Rehnberg has resigned as vice
president of the Cedar Rapids National
Bank of Cedar Rapids, Iowa, to accept
a position asi manager of the new Cotton
Exchange Clearing House of Chicago.
— $—
E. H. Kittridge of Hornblower &
Weeks, the new president of the Finan
cial Advertisers’ Association, states that
the Financial Advertisers’ Association
will hold its annual convention next fall
at Columbus, Ohio. The association will
also be represented at the convention of
the Associated Advertising Clubs of the
World at Houston, Texas.
Norborne P. Gatling, vice president
Chatham & Phenix National Bank, New
York, has purchased the beautiful coun
try estate, ‘ ‘ Kishwanna, ” at Brewster,
N. Y., formerly owned by the late John
G. Quinby. The property consists of a
substantial colonial residence and com
prises eighty acres. It is about fifty miles
from New York City at the foothills of
the Berkshires, and commands a beauti
ful viewi of the lake region of Putnam
county. It is regarded as one of the show
places of that section, its sunken gardens
being especially the magnet and mecca
of summer tourists.
— $—
Eugene M. Stevens, vice president of
the Illinois Merchants Company of Chi
cago, was elected president of the Bank
ers Club of Chicago at the sixty-first an
nual banquet at the Congress Hotel as
successor to Craig B. Hazlewood, vice
president of the Union Trust Company.
Frank R. Elliott, vice president of the
Harris Trust and Savings Bank, was
elected vice president, and Thomas C.
Stibbs, manager of the Chicago Clearing
House Association, was re-elected secre
tary and treasurer. The executive com
mittee of the club includes John P. Oleson, vice president of the First National
Bank, and William C. Cummings, presi
dent of the Drovers National Bank, in
addition to the newly elected officials.
The speaker of the evening was Judge
Adam C. Cliffe of the United States Dis
trict Court, who advocated better en
forcement of the laws, asking bankers
not to seek release from jury duty and
their cooperation with the bench in act

ing as receivers for bankrupt corpora
tions.
— $—
E. C. Kibbee, who has for six years
been director of the fiscal agency of the
Minneapolis Federal Reserve Bank, has
resigned such position and is now repre
senting the discount house of Salomon
Bros, and Hutzler of New York. His o f
fice is at 410 First National-Soo Build
ing, Minneapolis.
Mr. Kibbee has been identified with
investment banking houses and returns
to his former field with the friendship of
many thousands of bankers in the Ninth
Federal Reserve district. His transac
tions with member banks totals several
hundreds of millions of government se
curities of various sorts.
On leaving the Reserve Bank he was
given a testimonial banquet at the Leam
ington Hotel by the Federal Reserve
Club, which was attended by over 400.
The bank boys presented him with a spe
cially engraved “ Certificate of Indebt
edness,” of no par value, but which will
always be treasured by Mr. Kibbee.
— $—
George F. Baker, chairman of the First
National Bank, New York, was elected
an honorary member of the Bond Club,
at its luncheon in the Bankers Club re
cently. Mr. Baker was deeply touched
at the honor shown him.
Hugh J. Hughes, of Minneapolis, di
rector of markets in the Minnesota De
partment of Agriculture, was elected
president of the National Association of
State Marketing Officials at a meeting in
Chicago.
—$—
William R. Dawes, vice president of
the Central Trust Company of Illinois,
has been renominated for the presidency
of the Chicago Association of Commerce,
and Charles R. Holden, vice president of
the Union Trust Company, Chicago, for
general treasurer.
Joseph E. Otis, president of the Cen
tral Trust Company of Illinois, has been
elected a director of the Illinois Power
and Light Corporation.
Frank O. Wetmore, Chicago banker,
has been elected a trustee of the Red
Cross of America. Wm. Howard Taft
presided at the meeting and John Barton
Payne reported as chairman of the board.
— $—
L. R. Manley, vice president of the Se
curity National Bank of Sioux City,
Iowa, his wife, two children and sister,

January, 1925

THE

were guests at Christmas time at the
home of Grant McPherrin, president of
the Central State Bank, Des Moines.
—$—
L. B. Woodward, Northwest Trust
Company, St. Paul, has been elected
president of the Twin City Bond Club;
Howard Booth, vice president, National
City Company, Minneapolis, and M. W.
Markus, secretary-treasurer, Guarantee
Trust Company of New York City, St.
Paul.
On the board of directors for the com
ing year are James Dain, Marshall Field,
Glore and Ward and Company, Minneap
olis; Frank Carleton, Minneapolis Trust
Company, Minneapolis, and Ross Davis,
Illinois Merchants Trust Company, Min
neapolis.
—$—
H. E. Otte, president of the National
City Bank of Chicago, has been receiving
encouraging reports concerning condi
tions in the Northwest from correspon
dents. “ Country banks, and particular
ly those in the territory from which most
complaints were received a year ago, say
there has been vast betterment/’ he said.
A. L. Egge, Hibbing, Minnesota, cash
ier of the Merchants and Miners State
Bank, was elected president of the Range
Bankers Association at the annual meet
ing in Eveleth. Mr. Egge succeeds A l
fred Hoel of Gilbert, who has been pres
ident since the organization of the group
in 1920.
The principal address was given by
Curtis L. Mosher, assistant Federal Re
serve agent at Minneapolis, who talked
on ‘ ‘ Operation of the Federal Reserve
System.” Mr. Mosher defended the sys
tem of operation, pointing out its advan
tages and showing that there can be lit
tle improvement in the operation of the
banks.
Thomas H. Preston, president of the
Thomas H. Preston Company, certified
public accountants of Minneapolis,
talked on ' ‘ Bank Cost Analysis.”
—$—
George M. Reynolds, chairman of the
Continental and Commercial Banks, Chi
cago, has been re-elected as a Class A
director by the banks of Group One of

•••■'*
' •• '' Reed’s Master Plan for
1925 is ready.
Territorial assignments
are now being made.
Critical inspection in
vited and arranged by
appointment.

P.
"

M. R E E D
Banker

111

V /e s t

Associates

W a s h in g to n

»T A T E 2461

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Federal Reserve Bank of St. Louis

Street

C H IC A G O

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

BANKER

The National Bank o f the

R EPUBLIC
• •

O R

C H I C A G O

J o h n A. L y n c h , Chairman o f the Board
D a v i d R . F o r g a n , Vice-Chairman
G eorge W o o dr u ff,
H u g o E . O t t e , President

THE

BANKERS’

SERVICE

• •
Vice-Chairman

STATION’

ANNOUNCING
the consolidation of
^ e ^ t æ n a lB a n k o ft h e

R E
FAPR UU BB LHII CC
• •

I C

,
huh

National (Try R a n k
^ QnC AGO

U N D E R T H E T IT L E OF T H E FO R M E R

and their removal into their New H om e on
M O N D A Y , D E C . 22, 1924

The Business Indicator
REPUBLIC
AGraphicPictureol theSitusofhitTunn

Our Special
Live Stock Credit
Service
As a Special Service to our cor
respondents who handle live
stock shipments to the Chicago
Yards, we have developed a.plan
to facilitate the quick and order
ly crediting o f the proceeds o f
suchshipments in theiraccounts
with us. Xtissimple,error proof,
fast and efficient. May we not
tell you how you can use this
service to attract the shippers’
business to your bank? We hope
to hear from you.

E R E , in this greater in
s t it u t io n o f fin a n ce ,
you will find all o f you r old
friends, the same old-tim e
traditions and willingness
to serve—plus increased ca
pacity fo r service. H ere,
you are invited to drop in
a n d m a k e y o u r s e lf “ at
h o m e ” w h enever y o u are
in C hicago.

“ The Business
Indicator”
If you could keep your custom
ers informed o f The Trend o f
the Times from month to month,
don’ t you think that this service
would attract more and more
new business to your bank?
We have d ev elop ed a plan
which has proven its effective
ness and now we have arranged
to provide the same service to
our correspondents.
May we not tell you more
about it? Write us.

Another " Republic” Service
T h e “ R ep u b lic” believes in serving its correspondents in every
w ay that it can — in helping them to handle their present .busi
ness and in helping them to get m ore. Republic M on ey Orders
are now used by hundreds o f our correspondents because their
old custom ers prefer them and because they attract new cus
tom ers. M ay w e not send you a sam ple and full inform ation ?

KEEP Y O U R O F F IC E R S
in c l o s e r t o u c h w i t h y o u r s a v i n g s a n d c h e c k i n g a c c o u n t s b y t h e u s e o f o u r
e x p e r t m a ilin g s e r v ic e .
O u r s p e c i a l t y : D u p l i c a t i n g L e t t e r s , A d d r e s s i n g , M a t c h i n g , F o l d i n g a n d M a i l in g .
D E S M O IN E S D U P L I C A T I N G C O .
9 1 7 -9 1 9 W E S T G R A N D A V E .
D E S M O IN E S , I O W A

H O L S T E IN S A V IN G S B A N K
Capital $90,000.00

Surplus and Profits $70,000.00

This bank invites correspondence from banks and bankers. You’ll find a
warm, courteous atmosphere in all of your transactions with this insti
tution.
CHAS. J. WOHLENBERG, President

HOLSTEIN, IOWA

THE

NORTHWESTERN

BANKER

January, 1925

the Seventh Federal Reserve district.
August H. Vogel of Milwaukee defeated
F. A. Miller of Rockwell City, Iowa, in
a vote for Class B director of Group
Three.
— $—
James B. Forgan has been elected
chairman of the Security and Second Se
curity Banks as a successor to his father.
J. A. Peterson was elected a member of
the directorates of both banks as suc
cessor to the late James B. Forgan.

LITHOGRAPHING

— $—
Louis T. McFadden, chairman of the
House Currency and Banking Committee,
has been in New York recently in con
ference with bankers for the purpose of
amending and shaping his banking bill,
which it is hoped will be placed on the
statute books during the present session
of Congress.
Avery Pettit of Grand Junction, Iowa,
formerly with the Story County Trust
and Savings Bank at Ames, has been
elected assistant cashier of the State
Bank of Buckeye and took up his duties
there December 15th.

“T o u n d e d
GEORGE
ED W IN

H. R A G S D A L E
G. R A G S D A L E

S E .C R e: t a R V

Pioneer Banker Dead
The recent death of Wiliam R. Tier,
of Ridgewood, New Jersey, marks the
closing of an unusual business career.
He was born December 12, 1849, and
entered the National Park Bank of New
York on August 6, 1866, and there re
mained in active service until about six
months ago, when he was taken with an
illness which eventually caused his death.
As he was seldom absent from his post
on account of sickness, it may be said
he worked continuously for fifty-eight
years in the place in which he com
menced his business life.
His cheerful and optimistic tempera
ment, his intensely human attitude to
wards all with whom he came in contact,
whether customers or fellow-workers,
endeared him to all; and the bank and
his associates were as proud of his loy
alty as he was proud that he was spared
to serve for this unusual span of years.
Almost from the beginning he was con
nected with departments wherein per
sonal responsibility was necessarily as
sumed— Currency Department, Paying
Teller’s and Receiving Teller’s— and he
had been in charge of the latter depart
ment for a number of years.
At the Fiftieth Anniversary of his
service, the clerks and officials of the
bank joined in giving him a testimonial

Southern California Banks
C o r r e s p o n d e n c e i n v i t e d f r o m Bankers
d e s i r i n g to b u y c o n t r o l in C a l i f o r n i a .
S A N D E R S -M c C U L L O C H CO .,
B an k Brokers,
S uite 1005, S to r y B ld g ., L o s A n g e le s .

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

January, 1925

TI LE

NORTHWESTERN

BANKER

dinner. The genuineness of the spirit
manifested on that occasion indicated the
affection in which he was held.
Elects New Officers
At a recent meeting of the board of
directors of the Mississippi Valley Trust
Company, St. Louis, Benjamin F. Frick
was elected assistant bond officer, and
Edgar L. Roy, sales manager.

BENJAMIN F. FRICK
Mr. Frick, who is only 24 years of
age, is one of the youngest bank officers
in St. Louis. He was born in Belleville,
Illinois, but graduated from McKinley
High School in St. Louis. Upon leaving
school he entered the employ of the Mis
sissippi Valley Trust Company as stenog
rapher, and successively became utility
clerk, bond trader, and assistant bond
officer.
Mr. Roy has been connected with the
sales force of the Trust Company’s bond
department for a number of years.

Through The Years W ith
The Old
aPark Batik”
W e have kept our old friends because through
years o f active service the institution has proved
itself worthy o f their loyalty. And we have estab
lished new friendships because financial institutions
the country over find here a thoroughly modefn
banking service, alert and in keeping with their
requirements.

THE

The greatest truths are the simplest;
and so are the greatest men.—Har.

NATIONAL PARK BANK
OF N E W Y O R K
2 /4

Uroadway

Northwestern Banker Advertising Pays

THE STATE CENTRAL SAVINGS BANK
KEOKUK, IOWA

Humanizes Your Bank
Advertising
Western Advertisers Ass n
Omaha, Neb.

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Federal Reserve Bank of St. Louis

Capital ................................................................................................ $ 200,000.00
Surplus and Undivided Profits ........................................................ 329,574.16
Deposits .............................................................................................. 2,803,196.77
W I L L I A M L O G A N , P re s id e n t
L . J. M O N T G O M E R Y , V ic e P r e s id e n t
A S A P H B U C K , V ic e P re sid e n t
C. J. B O D E , C a sh ie r
H . T . G R A H A M , A s s is t a n t C a sh ier
H . B O Y D E N B L O O D , A s s is t a n t C a sh ie r

ACCOUNTS

BANKS

AND

BANKERS

INVITED

THE

NORTHWESTERN

Increasing Profits

BANKER

January, 1925

Is Elected Assistant Cashier
Wm. H. Miller, formerly manager of
thè Transit Department of the National
City Bank of Chicago, has been ad
vanced to the office of assistant cashier
of that institution. On La Salle Street

(.Little Talks on Tiling, No. 4)

ELL tiled

lands,

near the MinnesotaIowa state line, in
the C e r r o Gordo
(Iowa) County Corn Contest
yielded this year as high as 72
bushels per acre of shelled
corn containing 15 per cent
moisture.
Last year they

yielded as high as 90 bushels.
This was on fields of five acres
or more grown in the regular
farm routine without special
treatment. This season was
cold, wet and slow; and last
year a hot, dry summer fol
lowed a cold and backward
spring. Yet this field paid a
good profit.

Tile Drainage W ill Do the Same
in Your Local Farm Territory
W . H . M IL L E R

Mason City Brick and Tile Company
Mason City, Iowa

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Attention
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to Y ou r Chicago Business

In every department, the Chicago Trust Com
pany maintains an organization trained to
handle every item of out-of-town business with
speed and accuracy.
Your collections will be made promptly—
credit information will be forwarded as soon
as possible—current data bearing on the com
modity and security markets is always avail
able and will be wired to you—whatever your
banking needs in Chicago, do not hesitate to
call on us.

C h ic a g o T r u s t C o m p a n y
Southeast Corner of Monroe and Clark Streets

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

William H. is better known as 4' Bill.' ’
He has seen service with the “ National
City” for over twelve years, has served
on the board of directors of the Chicago
Chapter of the A. I. B. and is one of the
best known young bankers in Chicago.
In his new office he will serve as “ run
ning mate” for Schuyler Johnson.
OUR BEST DEPOSIT
BUILDING PLAN
(Continued from page 14)
were placed on the desks of the officers
and others. During the day some of
our competing banks sent the officers
and the institution beautiful flowers.
For the evening, from about 7 :30 until
the end, we secured a four-piece or
chestra, which played, and one of the
best tenors in the city, to sing at in
tervals of about fifteen minutes, from
8 o ’clock to 9:30, while the people were
passing through the institution.
Some of our lady clerks passed out a
sample of birthday cake, put up in a
neat little box, and which was gotten
up for us by one of the local bakers.
In another room we passed out a looseleaf memorandum book, together with
the birthday statement. For the men,
good cigars were furnished.
I might say regarding the cake, when
one of the Des Moines banks celebrated
its fiftieth anniversary, they had a baker
make for them a very large birthday
cake, and during the evening a caterer
served it, cutting pieces directly from
the cake. However, we preferred the
cake put up in boxes, because our lobby
is quite small, and in inspecting the
different departments of the bank, people
had to go through doors which are not
extra wide.
What especially pleased us was the
spirit of friendliness for the institution,
expressed by those who were present, as
well as by those who could not come, but
wrote us.

THE

January, 1925

Frankly, this whole idea developed
as we progressed, and it grew on all of
us, as well as on our customers who were
interested. In fact, from day to day, as
I would meet any of our friends, they
would ask me just how our deposits
stood. We also published our statement
from time to time in the local dailies,
regardless of the fact that we did not
have a call for the statement from either
the Clearing House or from the Auditor
of State.
After the celebration, we
mailed all the pieces of cake that were
left to most of our out-of-town cus
tomers.
I have always felt that the customers
of any institution were its best friends
(provided they receive the right kind
of service), and that they consider the
bank with which they do business as
their bank, and we were fully convinced
of this fact, inasmuch as about fifteen
hundred of our depositors and friends
visited our bank during the open house
which we held on the birthday, from 6 :30
to 9:30.
Two of the letters we sent out on the
campaign are as follows :
January 12, 1923.
To our Depositor Friends:
On the twenty-third day of April,
1923, a little more than three months
from now, our bank ( “ your bank” )
will celebrate its thirty-fourth birthday.

NORTHWESTERN

BANKER

While all these years have been marked
by steady progress and accomplishment,
and the business o f the ‘ ‘ Security ’ ’ has
grown from a small beginning to a com
manding position among the strong
banks of Iowa, yet in order to make this
celebration really worth while, we are
very desirous of bringing our total de
posits to three million dollars by that
date.
Our deposits now total about $2,650,000, thus if each depositor would in
crease his or her balance just a little
over fifteen per cent, we would easily
reach our goal; it means an increase of
about $15 for each $100 you now have
on deposit. Being a customer o f our
bank, we naturally count you among
our friends, and anything you can do
to assist us in reaching this goal of
three million dollars by April 23d will
be greatly appreciated.
That you may know just how your
bank has grown, we are enclosing our
Thirty-fourth Annual Statement o f Con
d itio n -lo o k it over, please, and tell
your friends what we are trying to ac
complish; it may be that you can in
duce them to start an account with us,
and that certainly will mean much to us.
Please sign and return the enclosed
postal card, and we will then keep you
posted from time to time as to how we
are progressing.
Thanking you, we are, with best wishes
for a Happy and Prosperous New Year,
Sincerely yours,
April 17, 1923.
To our Depositor Friends:
We have just received a call from
the State Superintendent o f Banking,

for a statement o f condition o f our
bank, at the close o f business, April 3,
1923, and we enclose herein a copy for
your information.
Comparison will show that our de
posits have increased $175,000 since the
first of the year, and we take this op
portunity to thank all of our friends for
anything they have done to make this
possible.
The twenty-sixth o f this month is the
day when we will celebrate our thirtyfourth birthday. We are all working
hard to reach the Three Million Dollar
mark in deposits by that time, but we
still have $125,000 to go; can we make
it? With our united efforts, we cer
tainly will come mighty near.
We are expecting you on the twentysixth to partake with us of our birth
day cake.
Sincerely yours,

Gold is a wonderful clearer of the un
derstanding ! it dissipates every doubt and
scruple in an instant, accommodates it
self to the meanest capacities, silences the
loud and clamorous, and brings over the
most obstinate and inflexible.—Addison.
Nature, in her most dazzling aspects or
stupendous parts, is but the backbone
and theatre of the tragedy of man.—
Morley.
Necessity urges desperate measures.—Cervantes.

Points o f Interest
in J\lew T or\ City

The thoroughly adequate credit facih
ities o f The Bank o f America are at
the disposal o f the Bank's customers.
Data on manufacturing, wholesale
and retail trade, shipping and foreign
conditions, is available.

W A L L STREET, financial strong
hold o f the country. The present
Bank o f America building, erected
in 1889, is seen in the right fore
ground. This structure is soon to be
torn down to be superseded by a 23
story building, the fourth on the
same site to house The Bank o f
America since 1812.

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

THE
E ST A B LISH E D 1812

N E W Y O R K C IT Y
C a p ita l, Surplus a n d U n d iv id ed P ro fits o t e r $ 1 1 ,0 0 0 ,0 0 0

THE

N O R TH W E ST E R N

January, 1925

BANKER

Your 1925 Investment Resolution
Make your New Year’s investment resolution contain the following and you will
make no mistake about the funds invested by your bank during 1925.
“ W e hereby resolve that the funds of this bank will be invested in securities
which are,— First, safe; Second, sound; Third, of short maturity; Fourth, of
satisfactory yield.”
All these requirements are contained in our 6 per cent COLLATERAL GOLD
BONDS which can be purchased to suit your investment requirements and with any
maturity date.
We offer the following subject to prior sale or change in rate. All Collateral Gold
Bonds listed below are payable at the Des Moines Savings Bank & Trust Company,
Trust Department of the IOWA NATIONAL BANK, Des Moines.
If interested, please wire or telephone at our expense.
Orders may be placed with the IO W A N A T IO N A L B A N K or DES MOINES
SAVINGS BANK & TRUST COMPANY, or sent direct.

Collateral Gold Bonds

In denominations of $500.00, $1,000.00, $2,500.00, $5,000.00

Amount
Maturity
$ 5,000 .............................May 8, 1925
10.000 ............ -............. May 9, 1925
5.000 ...........................May 15, 1925
4.000 ....................
May 16, 1925
3.500 .............................. May 18, 1925
7.500 ...........................May 19, 1925
3.500 .............
May 20, 1925
2.000 .............................. May 21, 1925
10.000 .......................... ....May 22, 1925
7.500 .............................. May 23, 1925
3.000 ..............................May 26, 1925
4.000 ..........
May 28, 1925
6.000 ..................
May 29, 1925
7.500 ............
May 30, 1925
7.500 ....................
June 1, 1925

Amount
Maturity
3,1925
$ 5,0 00............................... June
5.500 .............................. June
5,1925
3 .0 0 0 ............................June
6,1925
10.000 ........
....June
9,1925
5.0 00 ............................June
12,1925
6.5 00 ............................June
15,1925
6.500 ............................... June
17,1925
3 .0 0 0 .................
June
19,1925
20,1925
2.000 ............................... June
10.000 ........
June
23,1925
5.000 ............................... June
26,1925
4.0 0 0 ........................... June
27,1925
3.0 0 0 ..........
June
29,1925
12.000 ..............................June
30,1925

PURCHASERS M AY OBTAIN ALL OR A N Y PART OF EACH MATURITY.
All bonds offered bear our UNQUALIFIED ENDORSEMENT.
Telephone W alnut 351— Long Distance, Des Moines 22

IOWA GUARANTEE
Mortgage Corporation
fl

JULIUS D. A D E L M A N , President
BEN STERN, Secretary

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

OW NERS' A rS o V o P E R A TO R S *
SH O PS« B U IL D IN G

SHOPS BUILDING
DES MOINES, IO W A

January, 1925

THE

NORTHWESTERN

BANKER

IOWA BOND DEALERS SECTION
The Northwestern Banker Is the Official Publication of
the Iowa Bond Dealers Association

O F F IC E B S
P r e s i d e n t ............................................................... W a l k e r H a n n a , B u r lin g to n
V i c e P r e s i d e n t ........................................ . . W a r r e n F e r g u s o n , O t t u m w a
S e c r e t a r y - t r e a s u r e r ............................................J o h n C o r l e y , D e s M o in e s
BOARD OF GOVERNORS

W ALKER HANNA
P resident

W a l k e r H a n n a ........................................................................................ B u r l i n g t o n
W a r r e n F e r g u s o n ...................................................................................... O t t u m w a
J o h n C o r l e y . ....................................................................................... D e s M o i n e s
S. E . C o q u i l l e t t e ............................. .................................................. C e d a r R a p i d s
G e o r g e M . B e c h t e l ................................................................................. D a v e n p o r t

JO H N

CORLEY

Secretary-Treasurer

Knowing Investments by Their
First Names
P BUSINESS did not grow the in
vesting of money would be very sim
ple. There would be only the sim
plest forms of securities. But if busi
ness were not constantly growing there
would soon be but little money to in
vest. Many of us would be looking for
jobs, and the easily selected, simple in
vestments of a stand-still, unprogressive
country would be very scarce indeed.
Fortunately, neither this country nor
its business can stand still. Both per
sist in growing. There are more than
300,000 business corporations in the
United States. They represent the bulk
of the nation’s business enterprise and
progress. These corporations, together
with the national, the state, city, coun
ty and various local governments, issue
almost all the investment securities.
Now the financing of more than 300,000 business organizations in a growing
country cannot be simple. The financing
of any one corporation is a problem that
usually is different from the financing
of every other corporation. It is very
much like cutting a suit of clothes for a
growing boy. Corporations, like boys,
have different individualities. Some are
clean and healthy; others are not. Their
activities vary greatly. Future growth
and changing conditions, as well as pres
ent needs, must be provided for. That
is why many different kinds of securities
have been gradually developed. Each
has its proper use in creating safe in
vestments and in making financing more
efficient.
When a corporation issues different
classes of stock it selects certain rights,

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

By Robert Stevenson
President, Stevenson, Perry, Stacy &
Co., Investment Bankers, Chicago
jiiiiiiiiiiimiiiiiiiiiiiiiiniiiiiimiiiiiiiiiiiiiiiiiiiiiiimiiiiiiimiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiii!

One of a series of practical talks on
safe investments being given through
The Chicago Daily News Radio Broad
casting Station W M A Q in cooperation
with the Investment Bankers Associa
tion of America.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiuiiiiiimtiiiiiiiiiimiiiiitiiiiiiiiiiiiiiiiiiiiiitiiii

privileges and responsibilities of owner
ship and wraps them up in one class of
stock. Then it wraps up certain other
rights, privileges and responsibilities in
another class of stock. Ownership of
any kind of stock is simply ownership of
an interest in the business. That owner
ship is restricted to certain rights and
privileges, according to the class of
stock. As an illustration, a preferred
stockholder might not have the right to
vote in the corporation’s management.
His dividends might be limited to 7 per
cent or thereabouts, but he would get
that 7 per cent before the common stock
holder got a cent of the profits. The
common stockholder has the voting priv
ilege and in fat years he may draw down
large dividends. In lean years he may
see all the profits go to the preferred
stockholder. The different rights, privi
leges and responsibilities that belong to
different classes of stocks vary greatly
among different corporations. Strong,
successful corporations do not have to
offer great inducements. Weaker cor
porations may have to wrap up all sorts

of inducements in their stocks to attract
buyers.
Many investors, however, do not de
sire the responsibilities of ownership
that rest on stockholders. By buying
bonds they become lenders to the cor
poration, instead of owners of the cor
poration, as are the stockholders. A
bond is essentially nothing but a promise
to pay a loan. Why not just two kinds
of bonds, secured bonds and unsecured
bonds? Why do we have so many kinds
of bonds, debenture bonds, first mort
gage bonds, serial bonds, sinking fund
bonds, equipment trust bonds, guaran
teed bonds, refunding bonds, collateral
trust bonds, to mention only a few?
Loans and bonds would indeed be
simple if this country stood still and its
business did not grow. But business does
grow. Enterprises are continually ex
panding and consolidating. The rail
roads, especially, and many industries
and utilities, too, are made up of con
solidations of smaller companies. A bigcompany may assume payment of the
bonds of a little company to make them
more attractive to buyers. In such case
they are called assumed bonds. Or one
company may guarantee another com
pany’s bonds. In that case they are
called guaranteed bonds, and the ex
perienced investor at once has a lively
interest as to whether the guarantee is
worth much or little. A large railroad
may issue bonds covering its whole sys
tem, but they might not be first mort
gage bonds on its whole system because
certain parts of the railroad might still
be under bonds that were issued when

THE

NORTHWESTERN

BANKER

Most corporation bonds are secured by
mortgages. Most of those issued now
are payable in gold. But the word
“ gold,” while it is very good to have
in a bond, doesn’t make a bond strong
er. The qualities that make a bond
strong are the value of the property
mortgaged, the earning power of the
business and the honesty and capability
of the management. Payment in gold is
But you cannot determine the position a wholly subordinate consideration in
of a bond by reading its title. Quite a bonds issued in this country, although it
few second mortgages are really first is of first importance in considering for
mortgages. The old first mortgages have eign bonds of any kind, which generally
been paid off and the second mortgages should provide that they be paid in
automatically have become first mort American gold dollars in America.
Bonds vary considerably in titles and
gages
ineverything
exceptthe mere
other attributes accordingly as they are
name.
Bonds may be divided roughly into se issued by industries, railroads or utili
cured andunsecured bonds. Debenture ties or by the government, the states,
bonds
areprominent among unsecured cities, counties and other local divisions.
These public bonds are rarely secured by
bonds.
A debenture is a corporation’s
mortgages,
but by the taxing power of
promise to pay. No property is mort
gaged. The debenture is simply a pledge the community.
It is impossible to describe in a short
of the corporation’s full faith and credit
and, in addition, usually certain provi talk all the different kinds of bonds.
sions protecting the debenture bond Often a bond may bear a combination of
holders in event the corporation incurs several different titles, although the ten
future bond issues. Debentures issued dency is to simplify these titles as much
by strong, successful, established com as possible. The investment banking
panies are among the most desirable of house of standing in any community is
securities. But debentures of weak com very jealous that the bonds it handles
panies should be looked upon with cau are properly titled, and will take care
tion.
that its customers understand just what
those parts were owned by another rail
road company which had since been ab
sorbed into the larger system. A first
mortgage means the mortgage that has
first claim on the mortgaged property.
Its claim is senior or superior to the sec
ond mortgage or any subsequent mort
gage. Stockholders are junior or inferior
to bondholders in their claims on a prop
erty.

January, 1925

class of bond they may be considering
and why it may or not be the best bond
for them to buy.
“ Bond Briefs’ ’
“ Bond Briefs” is the title of an at
tractive new pamphlet being sent out not
only to out-of-town banks but to Chicago
investors as well, by the bond department
of the Northern Trust Company of Chi
cago. The publication is unique in that
it does not attempt to sell anything but
contains a lead article on some subject
of public interest each month. It also
omits the too-common review of general
finance, giving this information in a con
densed table each month.
Finances Hotel Project
Arrangements have just been closed
for a new $3,500,000 hotel in Denver, to
be located on Broadway, Eighteenth and
Lincoln streets.
The new hotel will be known as the
Cosmopolitan. Those behind the enter
prise have purchased what is known as
the Metropole Hotel and Broadway
Theater building, located on Broadway
near Eighteenth street. They will erect
on the corner adjacent to the present
hotel a new building with three street
frontages. This new building connected
with the present Metropole Hotel will
be operated as one hotel unit, to be
known as the Hotel Cosmopolitan.
The project is being financed by the
Fidelity Bond and Mortgage Company,
of Chicago, St. Louis and Denver, and
an issue of $1,750,000 on 6y2 per cent
bonds has been issued on the new hotel.
Establish Information Bureau
Halsey, Stuart & Co., Inc., has es
tablished a Department of Information,
the duties of which include the release
of news relative to financing originated
or managed by this house.
In addition, this department will fur
nish specific information upon request.
I f at any time special material is de
sired with reference to companies with
whose financing Halsey, Stuart & Co. is
associated, or material of a general na
ture is required for special articles or
investors’ columns, the company an
nounces that this department is quite
willing to serve you to the limit of its
capacity.

ATTENTION AUCTION SALE CLERKS
1200 Sale Clerks in Iow a are using F LE X -TIC AU CTIO N SALE SUPPLIES.
E v e ry user a booster.
W e w ill send any bank a sample outfit on approval. W rite for one to try
out at our expense.
FLE X -TIC SU PPLY CO., M A SO N CITY, IO W A

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

Trust Companies Banquet
Lucius Teter, president of the Trust
Company Division, American Bankers
Association, has announced that the
Committee on Arrangements for the
Fourteenth Annual Banquet of the Trust
Companies of the United States had de
cided to hold the affair at the Hotel
Commodore, New York City, Thursday
evening, February 19, 1925. The speak
ers will be Sir Henry Thornton, chair
man and president Canadian National

THE

January, 1925

Railways, and President Ernest Martin
Hopkins of Dartmouth College.
Thriftiest Section in the U. S.
The thriftiest section of the United
States, as indicated by per capita sav
ings deposits, is New England, it is
shown in figures compiled by the Sav
ings Bank Division, American Bankers
Association, made public just recently.
The data shows that the per capita sav
ings deposits in the New England group
of states is $443. The nearest competi
tor is the Middle Atlantic group where
the per capita savings deposits is $305,
while the other sections of the country
are considerably below these figures.
The data, which runs back for twelve
years, shows that New England has held
the leadership by a wide margin for each
of the years covered.
Although the analysis indicates that
throughout this period the Southern
states, where savings banking was late
in developing, have had the lowest rate
of savings, it is brought out that in the
twelve years this group has made by far
the greatest relative advance. In 1912
the per capita savings deposits in the
Southern states was only $18, while for
the present year it is $52, an advance
of 188.8 per cent. The nearest ap
proach to this increase is that of the
Pacific group, where in 1912, the per
capita savings deposits were $101, as
compared with $240 in 1924, an increase
of 137.6 per cent. The compilation of
the Savings Bank Division is as follow s:

NORTHWESTERN

Louisiana, Texas, Arkansas, Kentucky,
Tennessee; East Central— Ohio, Indiana,
Illinois, Michigan, Wisconsin, Minnesota,
Iowa, Missouri; West Central—North
Dakota,
South
Dakota,
Nebraska,
Kansas, Montana, Wyoming, Colorado,
New Mexico, Oklahoma; Pacific—Wash
ington, Oregon, California, Idaho, Utah,
Nevada, Arizona.

$443
305

80.8
101.9
188.8

East Central............ 80
West Central.......... 40
Pacific ................... 101

168
87
240

117.5
137.6

S ou th ern ...................

Tombs are the clothes of the dead;
a grave is but a plain suit, and a rich
monument is one embroidered.—Fuller.

Investment Bankers
105 8. LaSalle Street
Chicago
Telephone Dearborn 7363

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Federal Reserve Bank of St. Louis

B O N D S F O R IN V E S T M E N T
Wire or phone collect

B U R L IN G T O N

Corporate Building Bonds are the First Mortgage
obligations of corporations rather than of individ
uals, as is general practice in the Real Estate

Mortgage field with which the public is more
familiar.
Corporate Building Bonds are issued in the same
manner as other corporation bonds, such as rail
road, public utility and industrial securities.

The

same established system for distribution to in
vestors is employed as they are sold through banks
and investment bond houses throughout the United
States.
Corporate Building Bonds are first mortgage issues.
The issuing corporation has title to the land or
leasehold rights. The mortgage covers buildings
in the down-town sections of our largest cities—
properties that are well located and with estab
lished or large potential earning power— properties
that are stabilized.
Corporate Building Bonds enjoy marketability,
because of wide distribution among a diversified

Railroad
Corporation

BONDS

HANNA - SHREVES COMPANY

W hy they are the more desirable type of
Real Estate Bonds

110.0

FO R G A N , G R A Y & C O M P A N Y
Incorporated

BONDS
W e e n g a g e in t h e g e n e r a l b u s i
n ess o f u n d e r w r itin g and d is tr ib u t
in g s u ch b o n d s a s a re c o n s id e r e d
s u ita b le f o r d is c r im in a tin g in v e s t
m e n t o f b a n k s , in s u r a n c e c o m p a n ie s ,
a n d in d iv id u a l in v e s to r s .

Corporate Building Bonds

The states included in the above
grouping are as follows : New England,
Maine, New Hampshire, Vermont, Massa
chusetts, Rhode Island, Connecticut;
Middle Atlantic—New York, New Jersey,
Pennsylvania, District of Columbia,
Delaware, Maryland ; Southern— Vir
ginia, North Carolina, South Carolina,
Georgia, Florida, Alabama, Mississippi,

Government
Municipal

There is a great difference between na
tionality and race. Nationality is the
miracle of political independence. Race
is the principle of physical analogy.—
Disraeli.

Protection and patriotism are recipro
cal. This is the road that all great na
tions have trod.— Calhoun.

Per Capita Percent
Sav. Deposits age of
1912 1924 Increase

New England..........$245
Middle Atlantic. . . . 151

BANKER

class of investors and because the properties are
well known to the investing public.

■ ■

P. W. CHAPMAN & CO.,INC
116 S. La Salle St.
CHICAGO

42 C edar S treet
NEW YORK

THE

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

B A N K E R

Municipal Financing in 1924
By W. I. SLEEP
Vice President, Halsey Stuart & Co., Inc.

I N RETROSPECT, the year 1924 pre
sents an unusual history of tax-ex
empt bond issuance. The flotation of
municipal issues for ordinary public im
provements, and the funding of the sub
stantial expenditures occasioned by ex
tensive highway construction programs
have been abnormally augmented by the
extraordinary borrowings on the part of
various states for the purpose of sol
diers’ compensation.

While figures for the complete calen
dar year are not as yet available, it is
significant that, for the period ending
November 30, 1924, emissions of munici
pal bonds— representing funded debt, as
contrasted to so-called temporary loans,
and exclusive of the issues of insular pos
sessions—passed by a substantial margin
the billion and one-quarter mark. This
total exceeds the amount issued in a sim
ilar period in any preceding year by ap

A n Investment Service
for Bankers
T

H E distribution o f high grade securities
has become one o f the important func

tions o f the m od em bank. Surveys made
during the past tw o years have convinced
us o f the fact that more and more are bank
ers coming to appreciate the importance of
bond departments as a regular part o f their
service.
E v er ready to co-operate with the bank
ers in the proper handling o f investment se
curities, w e have organized a Bank Service
Department where all o f the banker’s in
v estm en t problem s w ill be g iv en expert
attention.
Bankers are invited to avail themselves
o f the service our bank service m en are
ready to give them.
W r i t e f o r p a m p h le t outlin in g th e s c o p e
o f o u r I n v e s t m e n t S e r v i c e f o r b a n k ers.

B A N K S E R V IC E D E P A R T M E N T

Hyney, Emerson & Co,
39 South La Salle Street, Chicago
1st W is e . N a t’ l B an k B ld g.
M IL W A U K E E

1 1 8 -1 2 0 B urdick A rcade
KALAM AZOO

January, 1925

proximately one-quarter of a billion dol
lars.
Obviously, the distribution of this
large amount to the ultimate purchaser
and holder created an unusual demand
upon the investment funds of the coun
try available for such securities. Fur
thermore, from the standpoint of exemp
tion from the federal income tax, munici
pal bonds cannot be considered as en
joying an exclusive field. All of the ob
ligations marketed by the Federal Land
Banks, the Joint Stock Land Banks and
the Federal Intermediate Credit Banks
are free from federal income taxation
and insofar as this feature is concerned,
come into direct market competition
with municipals. They consequently ab
sorb a huge amount of investment funds,
which might otherwise be available for
the purchase of municipal bonds. How
ever, only a portion of the aggregate taxexempt financing is actually absorbed by
the individual investor whose principal
object is to obtain relief from income tax
burdens.
Other conditions remaining the same,
the flat reduction of 25 per cent, applic
able to all individual income tax rates,
should very reasonably be expected to
depreciate the value of tax-exempt in
vestments because of a diminishing de
mand. However much it may have de
tracted from their worth for this particu
lar purpose, they are still in strong favor
as an investment medium. This has been
conclusively shown by the seemingly un
limited absorptive power of the country,
despite an unprecedented supply.
Notwithstanding these two influences,
which might be expected to impair mar
ket valuations, the price of municipal se
curities has, with slight fluctuations,
maintained a consistent advance through
out the period, with the result that the
net interest return has been materially
reduced. During the closing weeks of
the year, a noticeable effect of this condi
tion has been the absence of “ selling
to establish losses ’ ’ resulting from a mar
ket recession. Such losses are, of course,
deductible from taxable income. The sit
uation, therefore, furnishes a dependable
indication of the enhancement of munici
pal bond values.
Omitting the tax-exemption equation,
to what, then, is this healthy demand for
municipal securities attributable? Prev
alent economic conditions have created
an overabundant money supply and these
loanable funds in the course of com
merce, become concentrated in the bank
ing institutions at the principal money
centers. The commercial and savings
banks, in consequence, are among the
largest purchasers and holders of munici
pal bonds.
In friendship we find nothing false or
insincere; everything is straightforward,
and springs from the heart.— Cicero.

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

January, 1925

THE

Buys Railroad Bonds
A significant reflecton of changing con
ditions and market factors affecting elec
tric railway securities is contained in
the recent announcement that the Chi
cago, North Shore and Milwaukee Rail
road Co. has concluded negotiations for
the sale of an issue of $7,000,000 first
and refunding mortgage gold bonds,
bearing 6 per cent, to Halsey, Stuart &
Co., Inc., and the National City Company.
Funds derived from the sale of the is
sue in large part will provide for con
verting temporary financing for an ex
tension of the road to a permanent basis
and is the first issue of size providing
primarily for electric railway extensions
to appear on the market this year. All
of the $3,500,000 6 per cent, one-year
unsecured notes issued by the company
last June in connection with the con
struction of a five-mile section of a new
line from Harvard Street on the north
lake shore of Chicago to Lake Bluff, Illi
nois, a distance of 23^/2 miles, will be re
funded and an additional $2,721,700 prin
cipal amount of the company’s funded
obligations will be retired.
Upon the completion of this financing
the Chicago North Shore and Milwaukee
Railroad Company will acquire all the
property rights and franchises of the Chi
cago, North Shore and Northern Rail
road, a subsidiary organized to under
take the construction of the company’s
new line.

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

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Federal Reserve Bank of St. Louis

T h e A m erican Bond C ity
o f Safe Investments
I 1HESE actual properties are truly an investor’ s city, for they represent an ap
praised valuation of $105,813,036.00 against
which we have sold First Mortgage Bond Is
sues to the extent of only 55 per cent of the
total valuations.
*

This represents but a part of the total First
Mortgage Building Bonds sold by us over a
period of more than twenty years, during
which time every dollar of principal and in
terest that has become due has been paid.

THE BUTCHER WON’T DO IT,
SO WHY SHOULD THE BANKER?
(Continued from page 16)
While he wasn’t so universally loved as
the village blacksmith, yet he was seldom
called unprintable names. Furthermore,
he didn’t want to be. But costs had risen
and he was losing money.
Then a wonderful idea dawned. He
would carry the account at a loss and
charge it to advertising!
A great idea! Then Mr. Smallpenny
wouldn’t get mad, wouldn’t go out and
pronounce the bank a den of thieves.
Yes, it was a great idea! He would
use it on all his small customers. Miss
Littlepurse, Mr. Harduppy, Mr. Tightjeans, and the others. A great idea to
keep their good will, and some day they
will have a lot of money and big accounts,
and the bank will grQW very great and
prosperous! Big oaks from little acorns
grow.
Time went on. The Smallpennys and
the others came in every day and grum
bled about the service, insisted their state
ments were incorrect, that they weren’t
overdrawn, threatened to leave, and went
out the door again.
Yes, time went on, and the bank didn’t
go broke. The big customers carried the
load.
But the important fact is that Mr.

B A N K E R

You, too, may share in the financing of Amer
ica’s great cities, and build for yourself a
firm estate in the oldest form of safe invest
ment.
If you are guided in investing by actual fig
ures rather than general statements, send for
"‘ Our Successful Record.”
This book has
been published for those investors demanding
concrete evidence of a successful record for
investment. It will be sent to you without cost
or obligation.
Ask for Booklet N B 364

A merican B ond & Mortgage Co.
E s ta b lis h ed 1 9 0 4

CAPITAL AND SURPLUS OVER $ 5 , 0 0 0 , 0 0 0

In co rp o rate d

A m erica n B o n d «Sz. M ortgage B uilding
1 2 7 N o r th D earborn Street, C hicago
N ew Y ork
Cleveland
A

R o ck fo rd
Syracuse

O L D

D etroit
A lbany
R

C incinnati
D avenport
B oston
Grand Rapids
Philadelphia
P

H O U S E

THE

Smallpenny still had a fifty dollar account
with twenty or thirty checks a month.
Miss Littlepurse, if she has any money
saved, keeps it elsewhere. Mr. Harduppy
moved away. Mr. Tightjeans, however,
became prosperous. He has a big bank
account—with the bank across the street.
“ This is all wrong,” declared the right
eously indignant banker. “ Of all the in
gratitude ! For years, I served these peo
ple at a loss, and what have I gained?”
Mr. Smallpenny carry a bigger account ?
Why, he wishes he could. He will if you
show him the money. Miss Littlepurse?
Same answer. Mr. Harduppy has moved
away; nothing to do about that. Ah, Mr.
Tightjeans! He has a lot of money and a

NORTH W ESTERN

big account—though over at the other
bank. So the banker hunted up Mr.
Tightjeans.
“ Now, look here,” he began, “ for years I
carried your little account at a loss of
five or six dollars a year. I wanted your
good will, and, further, I thought you
might have a big account some day. You
have, now, but you ignore me and do your
business with my competitor. I want an
explanation.”
Mr. Tightjeans looked bored. “ Why,
old dear,” he replied, “ I never was an ob
ject of charity. I never knew my account
was a loss to you. Why did you carry it ?
Why didn’t you say something, and put it
on a paying basis while you could? I

M arkets fo r T our Bonds
g7>

U R private wire connection with New York af
fords us exceptional facilities for
obtaining quotations and execut
ing orders in both listed and
unlisted bonds. W e also spe
cialise in all bonds having a Chi
cago market. Many Iowa banks,
institutions and private investors
are already availing themselves
of these facilities, which are free
ly offered to all institutions and
investors interested in buying
or selling bonds.
O

d f5

BROKAW
A N D
105

South

C O M P A N Y
La S a l l e S t r e e t ,
Iowa Representatives:
EDWARD J. KELLY
MAURICE F. LEAHY

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Federal Reserve Bank of St. Louis

BANKER

Chicago

January, 1925

would have paid you what you lost. Right
now, I am looking for convenience and
service, for credit accommodations, not
paying obligations I never knew I in
curred. I have no reason for making a
change ?”
III
The foregoing sounds like foolishness,
of course. It is foolishness. But the mo
tive behind it is not foolish.
Can you imagine a butcher selling his
meat below cost for years in the hope
that some day his customer would become
a bigger buyer and make him a profit. No,
of course not.
Then, why the banker? Why do many
banks carry thousands of accounts at a
loss for the same reason. The answer is
that the banker often is afraid he can’t
get his point over to the customer—can’t
make it clear that a small account costs,
rather than earns, money. He is afraid
of public prejudice, which arises against
him more readily than a tradesman or
merchant. So he lets the small accounts
be, takes the loss, and charges it to good
will.
But the customers don’t know they are
being accommodated. They have an idea
they are doing a big thing for the bank
by leaving their fifty dollar account. Then
where does the gratitude, the good will,
come in?
The asnwer is analysis, education, and
the service charge. The banker doesn’t
need much analysis to satisfy himself that
the small checking account is a loser. But
the customer doesn’t know, and must be
shown. A simple analysis will serve to
educate him. Then, if a service charge is
adopted, it will be submitted to with much
less ill will.
Most people want to be fair. They
don’t want their banks to lose money on
their business any more than they want
their butcher to sell them meat below cost.
They want to preserve their self-respect.
IV
The survey of service charges in the
United States issued last year by the Mis
souri Bankers Association is just being
brought up to date, and copies of the re
vised report, giving the small account
practice in all the cities with over ten
million dollars aggregate bank deposits,
may be had by addressing Mr. W. F. Keyser, Secretary Missouri Bankers Associa
tion, 202 Short Building, Sedalia, Mo.
Several booklets on analysis are avail
able. Included are two pamphlets entitled
“ All that Glitters Is Not Gold,” and “ Eb
Martin’s Bank Account,” which also may
be had from the Missouri Bankers Asso
ciation. The Committee on Analysis of
the Clearing House Section of the Amer
ican Bankers Association is also prepar
ing a valuable pamphlet on Analysis,
which may be had without cost from Don
A. Mullen, 1730 Bowery Bank Building.
110 E. 42nd Street, New York.

January, 1925

T HE

Boys Need Guidance
The more inquiring the mind of the
boy, the greater becomes the need that
the boy’s questions be given answers that
are both “ proper and adequate,” Wal
ter W. Head of Omaha, chairman of the
national boys’ week committee, declared
at Chicago in an address before the in
ternational boys’ work conference, held
under the auspices of the Rotary inter
national.
Radio, moving pictures and the auto
mobile have stirred the imagination of
the American boy, Mr. Head declared,
adding that “ the rapid evolution” in
social life has brought many changes,
none of which is greater than the expan
sion of the mental horizon of youth.”
“ The horizon of the 12-year-old boy
has been broadened immeasurably,” he
continued. “ No longer is his interest
limited to the home and the schoolroom
and the vacant lot around the corner.
His father and mother lead an existence
vastly complicated, compared with that
of a generation ago, and his own life has
kept pace with theirs. His mind is alert
and restless.
“ The germ of unrest and dissatisfac
tion may lead men—and boys—to new
achievements or it may lead them to
disaster. Progress results when men’s
minds are alert and inquiring, which are
but other names for unrest and dis
satisfaction. But progress results only
when this dissatisfaction is controlled
and directed, with good purpose to
worthy ends.
Dissatisfaction, uncon
trolled and undirected, produces discord
between men and decay within a man.
‘ ‘ This general, well nigh universal
change in the attitude of men toward
one another and toward the home has
brought about the need for a more
definite interest by men in boys,” Mr.
Head said in closing. “ The more ac
tive the mind of the boy, the greater
becomes the need that its activity be
subjected to proper guidance. ’ ’

N O R T II W E S T E R N

BANKER

Our Bond Service
to You
When you buy bonds of the Bond Depart
ment of this bank you are assured—
1.
2.
3.
4.

That the security is more than ample.
That the m arketability is satisfactory.
That the net return is adequate.
That the bonds are high-grade in every
respect.

On this basis we seek your bond business.
Many of the most progressive banks in Iowa
are buying bonds from us for their own
account and for resale.
Consultations and Correspondence
on all matters of investment invited

GOVERNM ENT
Man only can create music, for nothing
is perfect until, in some way, it touches
or passes through man. He is the end
and object of creation, and its processes
are full and have meaning only when
they are completed in him. Everything
in nature is a puzzle until it finds its so
lution in man, who solves it by connect
ing it in some Avay with God, and so com
pletes the circle of creation. Like every
thing else in nature music is a becoming,
and it becomes its full self when sounds
and laws are used by intelligent man for
the production of harmony, and so made
the vehicle of emotion and thought.—Munger.

IN D U S T R IA L
M U N IC IP A L
R A IL R O A D
U T IL IT Y
BONDS

DesMoinesNationalBank
6th & Walnut Sts.
£7 tn e*

Nature has no moods.
man alone.—Auerbach.

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

They belong to

C a p ita l »1.000.000
Ï T h i l e Ji a n /ir "

THE

NORTHWESTERN

[INTERNATIONAL!
LIFE B U IL D IN G

5$ij

January, 1925

BANKER

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International Life
AND THE M EN
WHO MANAGE IT

The institution of Life Insurance demands men of broad vision,
real ability, and keen human interest—and it has its share of
such men.
The building of this company has brought together a group of
men who are working hand in hand for the service of agents
and policyholders.
Each individual possessing broad experience, each department
under the supervision of a “man who knows/’ all functioning to
gether to produce super-home office service—that will in turn
produce real profit for the field men.
Naturally the momentum of such an organization with such serv
ice ambitions is great, and it is not surprising to find those who
have associated themselves with this institution growing as the
company grows.
And this company is TODAY offering unparalled opportunities
to high-class life insurance underwriters.

.international
/ifr^njurdiiCT Co.
S f .L o u is , M o .

J. E. P A IS L E Y
P resid en t

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Federal Reserve Bank of St. Louis

W . F. G E A N T G E S
V ic e P resid en t and Gen. M gr. o f A gencies

W . K . W H IT F IE L D
V ic e P resid ent

THE

January, 1925

NORTHWESTERN

BANKER

IN S U R A N C E SEC TIO N

W hat to Look for in Choosing an
Insurance Company
RELIABILITY, NOT CHEAP
NESS IS MOST IMPORTANT
By E. E. MOORE
Cashier, Farmers State Bank,
Rockford, Minnesota
1ST INSURANCE agent, in selecting
, companies for his agency should
always bear in mind the fact that
he is selling his clients (and in the case
of a banker agent, his depositors) a form
of protection or indemnity—protection
or indemnity in case of fire or such other
loss as is covered by the policies. There
fore the age (not merely in years) capi
tal, surplus and standing of the organi
zation with the insuring public are prime
factors. It is not a question of “ How
cheap” — but “ How reliable is the com
pany or companies which I represent.”

Age means more than years alone, it
strongly implies amount of satisfactory
experience that the companies have had
meeting their obligations.
A brief review of any insurance chart
will clearly show the financial condition
of a company. All states maintain in
surance departments where information
of this character can be verified. So
much, briefly, for the company from your
clients’ standpoint.
Erom the insuring agent’s standpoint,
the matter of company service is no
doubt the most important factor next to
company stability. Not only should an
agent want to give his policyholder
sound insurance, but he must also be in
a position to render him insurance serv
ice. Just as the doctor renders medical
services and the lawyer legal advice, the
insurance agent should be in a position
to render insurance service and insur
ance advice. So in choosing a company
the agent must determine: “ Can this
company give me complete service on
my insurance matters not only in ac
cepting business, but on the question of
rates, engineering matters, special forms,
fire prevention, and protection services
to the insured'?” And does the com
pany have competent field men nearby
in the territory who are in a position to
give losses and other matters prompt at
tention ?
The foregoing has just touched upon
the vital points. But such items as the
following are also very important to any
agency.

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Federal Reserve Bank of St. Louis

Will the company write lines on all
classes of risks that are physically and
morally 0. Iv. ?
Has the company the facilities for
writing large amounts on individual
risks ? Or must the agency make his
own spread?
The next to the worst event that could
befall a banker agent, would be to in
sure one of his good customers in a com
pany that failed to make proper adjust
ment in case of loss. In promulgating
rates, the terms of the policy and human
nature are considered. Both should al
so be considered in making adjustments.
As I mentioned at the beginning, this is
a big question to answer. But after all
it simmers down to two issues, first,
sound indemnity to the insured and sec
ond, service to the agent and assured.
Be sure you represent the right kind
of companies. Your future depends up
on it.

LOOK FIRST AT HOME OFFICE
COOPERATION
By g e o . M cK e n z i e
Vice President, First State Bank,
Gaylord, Minnesota
E ARE more interested in the
service accorded the agency force
by a company than we are in the size
of the company.
Service and cooperation from the home
office are the two main things that lend
assistance to the agent in his efforts to
build a good insurance agency. The
company must, of course, be financially
strong, but we have found that a good
many of the smaller companies render
us more cooperation than the larger
companies, which in a large sense depend
upon their size and past record to at
tract business.
In selecting companies, we usually try
to obtain a line on their methods of do
ing business, their liberality in furnish
ing cooperation to the field force, and
their record as to adjustment of losses
from those who have already done busi
ness with them. Many times our brother
agents can furnish us with abundant
information, if we will only call on them.
Confidence begets confidence, and if a
company has a record of fair and liberal
dealing with the boys in the field who
produce the business, there is no reason
to doubt but what that company will

furnish the new man just starting with
them that same fair treatment and co
operation.
Will Increase Capital Stock
The board of directors of the Security
Fire Insurance Company of Davenport,
Iowa, has approved an increase in the
capital stock of the company from
$200,000 to $300,000 and called a special
meeting of the stockholders of the com
pany to vote on the proposed increase.
The Security Insurance Company is
the oldest fire insurance company of the
city of Davenport and one of the oldest
in the state of Iowa, having been or
ganized in 1883.
During its 41 years of continuous
operation, the company has prospered,
has had a steady and substantial growth
and has established a splendid reputa
tion for sound and conservative manage
ment, prompt adjustment of losses and
fair dealing with its policyholders, under
the able management of General Man
ager E. E. Soenke.
On October 1, 1924, the capital stock
of the company was $200,000, surplus
and profits, $320,162.72, and surplus to
policyholders, $520,162.72.
When the proposed increase in capital
stock has been consumated the company
will have a capital stock of $300,000
and surplus and profits in excess of
$320,000, making a surplus to policy
holders at that time of over $620,000.
Following are the officers and directors
of the company:
Jas. W. Bollinger, president; Rudolph
Rohlfs, first vice president; J. C. Hall,
second vice president; R. J. Clausen,
treasurer; E. E. Soenke, secretary and
general manager; Paul Hinsch, director;
Henry Brummel, director.
Mutualization Is Approved
The stockholders of The Guardian
Life Insurance Company of America at
their special meeting held recently ap
proved unanimously the plan adopted by
the company’s board for the conversion
of the company into a mutual life in
surance corporation under Section 95 of
the Insurance Law of the state of New
York.
The next step in the mutualization
program will be the approval of the
plan by the company’s policyholders at
their special meeting called for January
22, 1925.
“ Kind words” coupled with a “ pleas
ant smile” will always command atten
tion. Use them in your canvass.—James
E. Newburn.

THE

N O R TH W E ST E R N

BANKER

W e Want
LIVE W IR E R E P R E SE N TA TIV E S
FOR IO W A
To Write

LIFE - FIRE - C A SU A L T Y
INSURANCE

ELLIS & H OLLAND CO.
Securities Building

Des Moines, Iowa

the : o ld

lin e

CEDAR R A P ID S
LIFE IN S U R A N C E CO.
General Agency Chances Open
in Four Western States
A Good chance for Bankers w ith
A b ility of Management
C Jm tcJ& trtM .

U re a

CJ3. S ixxb o d cz,

S ecy.

HOME OFFICE : CEDAR RAPIDS. IOWA

N O R T H
LIFE

W E S T E R N

I N S U R A N C E

A N D

C O M P A N Y

O M A H A ,

N E B R A S K A

O pportunity fo r Bankers
Here is a company that has made wonder
ful progress within the past year, due, the
officers and directors think, to the close
relationship with their bank and banker
agents.
There are several very wonderful agency
openings for wideawake banks and bank
ers. If you are interested write today—
you will receive prompt attention.

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Federal Reserve Bank of St. Louis

January, 1925

Yost with National Life
J. Frank Yost, formerly of Yost and
Christy, Des Moines agency for the
Massachusetts Mutual, has opened in
Des Moines a general agency for the Na
tion Life of Montpelier, Vermont, with
offices on the eleventh floor, Common
wealth building.
According to the present plans of the
National Life, in developing its Iowa
territory, Mr. Yost will have as his terri
tory thirty-six counties in southwestern
Iowa, including Des Moines, and will
begin at once to develop new agencies,
and will devote his entire time to in
creasing the sales force of that region.
Mr. Yost is an experienced agency man,
having been with the Massachusetts Mu
tual in Des Moines for over six years,
and prior to that was agency superin
tendent for the Mutual Life of New York
at Davenport for thirteen years. His first
insurance experience was at Toledo, Ohio,
with the same company.
Mr. Yost is well known to Iowa and
Des Moines agents, having taken an ac
tive part in the Des Moines Life Under
writers Association since he came to this
city six years ago. Last year he served
as president of that organization.
Hits Half-Rate Policy
While not being specific, President
John W. Clegg of the National Associa
tion of Life Underwriters referred to
the so-called “ half-rate” or “ modified”
life insurance policy being issued by
one or two companies at present, when
he said, in an address before the annual
meeting of the Association of Life In
surance Presidents: “ We deplore the
introduction of anything in our business
of a competitive nature developed by
any individual company, which in its
finality will only act as a destructive
force to that which your leading under
writers all over the country are endeav
oring to accomplish.”
Mr. Clegg said he hoped for the time
to come when any proposal of any new
contract for any departure may be sub
mitted to a committee composed of
members of the President’s Association
and other home office official associa
tions— a committee formed of different
companies—to pass upon such contracts
and such procedure. If, in the judg
ment of such a committee, the proposed
contracts or procedure fill an economic
need better than is now fulfilled by the
entirely too many contracts already in
use, he held, then all companies will
simultaneously be permitted to issue
contracts and proceed along lines which
will continue to help the underwriters
in the field in their constructive en
deavor with their clients. Continuing
Mr. Clegg said: “ I believe that you can
readily see that without this we may
be forced to a condition such as pre
vailed twenty-five years ago, which T

January, 1925

THE

believe those of you are here and were
in the business at that time woud not
under any circumstances look upon with
favor. ’ ’
Emphasizing the fact that members
of the life underwriters’ associations, of
which there are approximately 160 scat
tered all over the country, with a mem
bership of about 15,000, wanted to
prevent the possibility of criticism
which the agents were subject to in the
field and the officials were subject to in
the home office, Mr. Clegg appealed to
the Presidents’ Association for support
in the endeavor of the various local
associations of life underwriters to place
life insurance on a much broader plane,
fulfilling the needs of the people as a
whole, as nothing else in the realm of
finance will do.
In conclusion, Mr. Clegg assured the
Presidents’ Organization of the backing
and cooperation of the members of the
local associations in the upbuilding of
an ever-increasing financial institution,
for the service of their fellow men. In
return, he asked on behalf of the men
whom he represented for the hearty co
operation of the company officials in
accomplishing the things which cannot
be done singly, but which all are hoping
to do collectively.
Clean-up Policies
It may be that a prospect is carrying
all the insurance he needs to cover the
mortgage on his home, to educate his
children, and to cover a monthly income
for his wife and family, but, even so,
if there is to be a clean-up cost of any
where from $500 to $2,500 at his death,
this obligation will become in effect a
mortgage on the income and a real mort
gage on the home; so clean-up insurance
is needed to protect all of the other in
surance. Any prospect can see this when
the facts are put before him.— ( Clean-up
Policies)—New York Life Bulletin.
The Leading Objection
Probably the leading objection or ex
cuse made to life insurance is “ I have all
I need” or else “ I have all I can carry.”
One of the best ways of overcoming
this objection is by meeting it before it
is offered. Few average men carry more
than $5,000 to $6,000 at the most, so the
canvass should include at the very first
an inquiry: “ I suppose you carry about
ten thousand, anyway, don’t you?”
The answer is almost always, “ No,”
whereupon the agent appears surprised
and says, “ You certainly shouldn’t carry
any less than that,” and proceeds to show
him why. By assuming that the pros
pect has $10,000, the smaller policy which
he actually has, appears small in size
and opens a door which might have barred
the interview.
Impress a large figure upon the mind
of the prospect. In that way the unit of

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

NORTHWESTERN

BANKER

protection is increased. It’s the same
principle followed by Babe Ruth who
swings two bats before going to the plate
in order to make one bat seem light in
comparison. Suggest $10,000, and $5,000
is more easily written.— ( Objections,
meeting) — The Equiowa.
What Then?
The insurance man chased the business
man into his office. That was his busi
ness.
The business man chased the insurance
man out of his office. That was poor
business.
The business man two years later

chased the insurance company and was
rejected. That was their business.
One year later the business man was
chased off the earth. That was unfortu
nate business.
Three months passed and his family
was chased into the street. That was no
body’s business.— (Delay, Danger of) —
The Bee Hive.
It Pays to Ask
All things being equal, that man sells
the most who asks the most people to
buy, most frequently and most persua
sively. It certainly pays to ask.— (Pro
duction) —“ Poster of Achievement.”

THE

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

BANKER

The DesMoines

The “ Journal of Commerce” says:
‘ ‘ The foregoing figures indicate a rather
small prospect for the insurance com
panies as a whole to show any under
writing profits on the 1924 turnover.
While the losses are somewhat below the
1923 record there has also been a de
crease in the premium income, and with
expenses and taxes steadily climbing the
margin between income and outgo for
the year promises to be very narrow.
On the other hand, companies have been
earning fair interest rates on their re
serves and there has been a material
appreciation in the value of high grade
securities, of which the fire insurance
companies have very considerable hold
ings, so that when the final accounts are
made up the financial position of the
companies as a whole should have im
proved appreciably. ’ ’

Life»»Annuiti?
CompanV

Paul L. Haid, President of
America Fore Companies

November Fire Losses A re Heavy
OVEMBER fire losses, according
to figures compiled by the “ Jour
nal of Commerce,” were $39,081,600, or nearly ten million above Novem
ber of last year.
The eleven months’ figures of fire
losses for this year reach an aggregate
of $333,052,450, which, notwithstanding
November’s heavy contribution, is over
$30,000,000 below the 1923 record for the
same period. The fire losses by months
thus far this year compared with the
monthly record of the two preceding
years, as shown in the following table
affords an interesting study of the im

mense property waste by fire to which
this country has been subjected during
the last three years:
1922
Jan. $ 38,663,000 $
Feb.
29,304,300
Mar.
39,910,750
April 31,009,750
May
29,868,950
24,102,850
June
July
36,667,750
Aug.
21,579,500
Sept.
41,515,000
Oct.
40,065,400
30,776,100
Nov.

1923
1924
36,614,,850 $ 41,243,600
42,774.,800 31,447,900
41,159,,650 28.,406,150
32,,638,,150 31.,815,900
34,015,850 27,,832,,300
34,851,900 20,350,400
27.,490,,750 23,,968,,800
24,,474,,300 31.,349,,000
28.,738,,500 29.,612,,400
31.,398,,450 27.,944,,400
29,.702,,200 39,,081,,600

Total $363,463,350 $363,854,400 $333,,052,450

' T h e Co m p a n y o f C o - o p e r a t i o n '

EVERYTHING
in the w a y o f service consistent
with sound insurance under
w riting is offered to agents by
the Des M oines L ife and A n
nuity—
But, above all, you w ill like the
spirit of this Com pany— the
spirit of whole-hearted coopera
tion that is m anifested by the
personal interest shown in the
handling of each agen t’s busi
ness.
J. J. SHAMBAUGH, President

O IN ESÜ FË
AND

A n n u it y Company
BES MOINES

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Federal Reserve Bank of St. Louis

January, 1925

Paul L. Haid, president of the Fidelity-Phenix, has been elected president
also of the Continental, succeeding Nor
man T. Robertson whose resignation was
announced recently and of the Ameri
can Eagle, succeeding James A. Swinnerton who has resigned to become vice
president of the three larger America
Pore Companies. To provide for the
unified plan of executive and office or
ganization which Chairman Sturm an
nounced some time ago, a number of
official changes were made at the same
meeting as well as several promotions.
These changes affect only the home office
staff, inasmuch as the unit of plan of
operation has not yet been put into ef
fect in the Chicago or San Francisco de
partments of the companies.
To those who know Mr. Haid, this an
nouncement comes as no great surprise.
Ever since, six years ago, he came from
the Pennsylvania field to the home office
of the America Fore companies as execu
tive special agent, Mr. Haid has been
“ doing things” for these companies.
His remarkable rise to his position as
president of the Fidelity-Phenix has
been no happenstance. His broad vision
and clear judgment have been respon
sible for some of the most constructive
work of the organization. His initiative
and personality have enabled him to put
them over. Not the least of Mr. Haid’s
suggestions, is that for the unit plan of
operation which is now going into effect
under his guidance. He enjoyed the con
fidence of Henry Evans who entrusted
him with some of his most difficult
tasks. They were always well done. To
become the president of a hundred mil
lion dollar organization at thirty-seven
is a real achievement.
James A. Swinnerton becomes vice
president of the three larger companies.
This gives the Continental and FidelityPhenix the advantage of Mr. Swinner-

January, 1925

THE

ton’s experience and judgment hereto
fore alone enjoyed by the American
Eagle.
William Quaid, vice president of the
Continental, becomes also vice president
of the other two companies and will fill
the newly created position of manager
of production.
Herbert E. Maxson, vice president of
the American Eagle, becomes also vice
president of the other two companies
and will assume jurisdiction over the
New York City business for all com
panies and also will supervise the agency
brokerage department.
Lamar Hill, secretary and counsel,
has been made vice president and counsel
in recognition of his splendid work in
the legal department.
George A. Clarke who has been in
charge of the local department as sec
retary, has been made also a secretary
of the other two companies. He will
supervise the middle department under
writing. Associated with Mr. Clarke in
the middle department will be John G.
Derby.
Mr. Derby, who has been
agency superintendent of the FidelityPhenix, has been made assistant secre
tary of the three companies.
The southern field which has been
handled by a single underwriter for each
company has been split into two, the
southwestern and the southeastern.
0. P. Grover, who has been made
secretary of the American Eagle and
Fidelity-Phenix, in addition to Conti
nental, will be in charge of the south
west. John W. Clarke, who has been
the American Eagle underwriter and
secretary, will also be secretary of all
companies and supervise the southeast.
New York and New England business
has been placed under the guidance of
Mr. William P. Dooley, Continental sec
retary who is now also secretary of the
other two companies. With Mr. Dooley
in the work of this department will be
Prank A. Christensen who has been pro
moted from the position of agency super
intendent of the American Eagle to that
of assistant secretary of all companies.
Vincent L. Gallagher, assistant secre
tary, has been made secretary of all com
panies and will act as assistant to the
chairman and president, in addition to
supervising some of the specialty de
partments.
Herbert W. Grindal, assistant secre
tary in the financial department, has
been made secretary. In conjunction
with Secretary Lamm, Mr. Grindal will
supervise the financial department di
rectly under Chairman Sturm.
Vernon Hall, general adjuster, is now
an officer, secretary of all companies in
charge of losses.
Charles E. Swan, auditor, has been
made treasurer of all companies.
William H. Ernes, assistant auditor,
becomes auditor, succeeding Charles E.
Swan who was made treasurer.

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

SellT h e m All
Y o u m a y s e c u r e a g o o d v o lu m e o f a p p lic a t io n s — b u t y o u h a v e
d o n a te d s o m e o f y o u r t im e i f p a r t o f t h e m a r e r e j e c t e d .
Y o u a r e o n l y c a p i t a l i z i n g o n p a r t o f y o u r t im e u n le s s y o u a r e iri
a p o s it io n to w r it e 100% o f y o u r p r o s p e c t s — y o u m a y g e t th e a p p li
c a t io n , b u t d o y o u r e a liz e o n a ll o f t h e m ?
M e d i c a l L i f e c o o p e r a t i o n d o e s a w a y w i t h w a s t e d s e l l i n g e f f o r t a n d p u t s y o u in a p o s i
t i o n t o “ s e ll t h e m a l l ” b y g i v i n g y o u t h e c o m p l e t e c o o p e r a t i o n o f
— sta n d a rd an d s u b -s ta n d a r d d e p a rtm e n ts
— a lib e r a l a tt it u d e t o w a r d s im p a ir e d r is k s
— C h ild ’s E n d o w m e n t p o lic y
— sam e ra te s fo r b o th m en a n d w o m e n
Y o u r o p p o r t u n i t y t o “ s e ll t h e m a l l ’ a w a i t s y o u w i t h a M e d i c a l L i f e A g e n c y .
W r i t e n o w f o r o u r p la n .
^
pp

(“M e d ic a l l if e
I N S U R A N C E C O M P A N Y OF A M E R I C A
W ATERLOO
IO W A

I. G . L O N D E R G A N , V i c e P r e s i d e n t a n d G e n ’ l M g r .

E . E . B R O W N , A g e n c y S u p e r v is o r

The Confidence Placed in You
— by yonr community carries with it many obligations.
This must be considered in selecting a life insurance connec
tion.
That is why the John Hancock, as one of the OLDEST,
LARGEST and STRONGEST companies is your logical
selection.
Its reputation for unexcelled policies, personal service and
co-operation should appeal to all progressive hankers.
For information concerning
our bankers proposition, write

HARRY S. HASKINS, State Agent
701-703 Hippee Bldg.

Des Moines, Iowa

Salary Continuance Policy
O F F IC E R S

E. M. S E A R L E , Jr.
President
H. E. W O R R ELL

Sec.-Treas.

Pays fifty dollars, one hundred dollars,
one hundred fifty dollars, or two hundred
dollars a month (first payment im
mediately upon receipt of proofs of the
death of the insured) and continues the
payment of like amount for stated periods
of from six months up to twenty years.
Ask us more about it.

Omaha Life Insurance
Company
OMAHA, NEBRASKA

THE

“ Nick Carter” Off to Sift Biggest
Mystery of All
A recent issue of the Equiowa con
tained an article mentioning an auction
sale of goods belonging to Tom Harbaugh, who was at one time one of the
best known writers of adventure stories
in the United States. The article told
of Harbaugh going to the county poorhouse to spend the rest of bis life, and
cited the incident as an example of a
case where monthly income insurance
could easily have prevented a tragedy.

NORTHWESTERN

BANKER

Since then, the newspapers have told
the story of Harbaugh’s death, the de
mise of an old man, lonely and forgotten
by a nation which once acclaimed him
the “ Dime Novel K ing” because of his
creation of the famous character of fic
tion, Nick Carter. The most prolific and
wealthiest writer of his time, Harbaugh
died in poverty, penniless and alone.
At one time, about fifty years ago, his
fortune rose to half a million dollars,
but he spent it all on his friends, making
bad loans and playing the market.

Insurance Leadership
To establish leadership and to build up a good business in
your community and the surrounding territory you must
have a thorough knowledge of everything that your cus
tomers are interested in, and together with that the sincere
desire to look out for their best interests and render the
best possible service.
Insurance is an important part of your customers’ needs.
Every day you have some request for information concern
ing the proper kind of insurance to buy. Your bank can
maintain a department for Life Insurance and make it
one of the most profitable— and at the same time it is a
real and necessary service to your customers.
May we not have the opportunity of proving these facts to
you more conclusively and at the same time show you our
plan without obligation,

UNIVERSAL LIFE

INSURANCE
D U B U Q U E

CO.

IO W A

New Juvenile Policy
W r it t e n b y T h e L in c o ln N a tio n a l L if e I n s u r a n c e C o m p a n y
t h e l i v e s o f c h i l d r e n f r o m o n e d a y o l d u p t o 14 y e a r s .

I s s u e d a s T e r m i n a l E n d o w m e n t s , m a t u r i n g a t a g e s 16 t o 20 i n
c lu s iv e , o r a s a T w e n ty P a y L ife o r T w e n ty Y e a r E n d o w m e n t.
T h e f u l l f a c e v a l u e o f t h e p o l i c y is r e a c h e d o n t h e a n n i v e r s a r y
o f t h e p o l i c y o n w h i c h t h e i n s u r a n c e a g e o f t h e c h il d is fiv e y e a r s .
W a i v e r o f f u r t h e r p r e m i u m s in e v e n t o f t h e d e a t h o r d i s a b i l i t y o f t h e f a t h e r
m a y b e p r o v id e d b y th e P a y o r I n s u r a n c e fe a t u r e .
I n e v e n t o f t h e d e a t h o f t h e c h il d t h e p o l i c y is p a y a b l e t o t h e f a t h e r .
T h is n e w J U V E N IL E P O L IC Y c o m p le t in g th e k it o f s e r v ic e t o o ls
N a tio n a l L ife a g e n t s m a k e s it p a y to

fo r L in c o ln

The Lincoln J\[ational Life Insurance Company
“ I ts Name In d ica tes I t s C haracter’ ’
L in coln L ife B u ildin g

F ort W ayne, Indiana

N ow M ore Than $ 3 2 5 ,0 0 0 ,0 00 in F orce.

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

January, 1925

A very natural question might be
asked following the death of any former
famous and wealthy man, and that is
why do men reach old age without an es
tate ?
That is easy enough to explain. Biog
raphies are filled with incidents that tell
the same story. Professional men may
be specialists in medicine, engineering,
or law, and yet be very poor financiers.
Their own problems are sufficient to oc
cupy their minds without the extra load
of investment problems. The capital of
a professional man in his training, from
which he earns steady returns for his
services. After he becomes established,
these returns are very constant for years.
The professional man’s hope for an es
tate in his old age must, therefore, de
pend upon a regular and constant accu
mulation of savings from his earnings.
The place in which these savings are in
vested must be one that is safe and that
will yield a fair return.
Life insurance agents are privileged to
point out to such men how they can in
vest their savings wisely in order to
yield a good return. In addition to ac
cumulating a secure estate for his old
age, the professional man, through the
medium of life insurance, can protect
his estate against the loss of its most
valuable asset, his brain. Life insurance
is the means of creating a safe reserve
for the future. I f a life insurance agent
will get the life story of nine out of
every ten men who are sixty years of
age or over, he will have sufficient ma
terial to convince himself as well as his
clients that providing for the future
through life insurance is a necessity.
Many men of this age have accumulated
enough mining, oil and manufacturing
stock to paper several rooms.
The answer for every agent should
be to show prospects such examples a?
that of Tom Harbaugh and countless
others, then suggest a monthly income
policy for old age as the best guaran
teed means of assuring independence.—
Prom the “ Equiowa.”
H. & A. Meeting
The 1925 mid-winter meeting of the
Health and Accident Underwriters Con
ference will be held at Hotel Chase, St.
Louis, Mo., on Tuesday and Wednesday.
March 3 and 4, 1925.
Sessions will be held morning and
afternoon of both days. Arrangements
are under way for an excellent program
of speakers as well as the usual good
entertainment. •
Appoints New General Agents
The John Hancock Mutual Life In
surance Company, Boston, Mass., de
cided to open a second General Agency
in the city of Chicago, Illinois, and has
selected for this new agency William M.
Houze who has for some time most suc
cessfully represented the company at Al-

T 11 E

January, 1925

bany, New York. Mr. Houze has been
with the John Hancock Company over
twenty-one years, beginning in the In
dianapolis Agency and receiving succes
sive promotions in recognition of his
successful work in the field. In his most
recent position at Albany he has built
up a large and successful agency. Mr.
Houze’s wide experience in the field,
therefore, makes him well qualified to
assume the important development work
in connection with the new Chicago Gen
eral Agency.
As a successor to Mr. Houze at Al
bany the company has selected Floyd H.
Chase, who has for some time been the
Agency Supervisor in the Albany
Agency. Naturally he has been very
close to Mr. Houze, and has met with
pronounced success in the performance
of his duties. His familiarity with the
work and his success in the field war
rants the belief that the fine organiza
tion at Albany will be maintained and
increased as the years go on.
These changes took effect December
26th.

N O R T . l \V :: S T E R N

B A NK E R

Mr. Northwestern Banker Reader
Any Unoccupied Territory
J\[ebras\a and Minnesota
Greetings:
Rapid development of territory is now being carried on by
onr State Agency Manager. A real Agency service and prac
tical “ business getting” plans are successfully being carried to
satisfactory results.
A contract, supplies and some “ get an application” series of
letters from the Home Office or General Agent may not bring
you many $$ in commission.
A Western Life Agency, coupled with our local advertising
campaign for you, personal letters directed to your selected
list of prospects and reliable, intelligent and competent Life
Insurance Salesmen to assist you in closing business may mean
many $$ to you this winter and the coming spring.
May we tell you of our “ Bank Agency Plan?”

Unique Xmas Greeting
One of the most unique Christmas
greetings that has come to the attention
of this publication was that used by the
National Life Association on the last
page of the Dynamo, their official agency

nsurancoCompan/
4HHHH*

J.P. Hewitt
E.T. Meredith
M.L.McCoy*O.O.Roe
E .S .Kinney*H« F .Gro a s
*
F.A.Draper*F.A.Shepard
*
*
C.E.Brenton*#*F.W.Stuart *
-:h h *F.G .Broad *■*■** F.L.Eldredge***
L.A.Willians*E.L.Balz*E.A.Odell
Dr. Wm.Stevenson*Dr.L.K.Meredith
Julia A.Fleming •** Ellen Erickson
* E»H.Ruby*-Rhoda Miller**Avis Spencer
*
* Tessie Douglass*Ray Hammill*Eva Allen *
•:s-a-*CeciJL Grooin***Eva Hansen***Av-is Forbes*-«-*
Hilda Peterson**Clara Kehl**Grace Hodges
*
Frances Johnston*-::Fern Blake*A.F.'Hanson
*
*
F.W.Meuman*Mary llurdock**Margaret Morgan
*
■»•»•»Elvira Bergnan*Bonnie Ogg*Blanche Overhulser-»**
Grace Aschin*Ethel McLelland*Cecil Longshore
Emma Steinman**Edna Woolley***Winnefred Kidney
*• A.E.Barker*Karen Brikland-Hiargaret Shipman*
* Ed D.Black**Cecil Cole**Bessie Miller *
* Harriet Janes********Margaret Bower *
*
Claire Kaminky*****Daisy Rhoad3
*
#
G.YJ.Bratcher ***• J.L.Olcott
*
***** El lee Jorgenson
-i^****
* Pearl Shakel
*
******************
****and****
*H-A-P-P-Y*
«NEW— YEAR*
***********

*
*

If you folks have as much Christmas cheer *
as we folks wish,*
y ou’ll be glad all year. *

sro*****;:-::*^-************«********.***«***.^.#**
magazine. It was a greeting from the
officers, directors and Home Office staff
to their agents in the field, as will be
noted by the accompanying illustration.
All the names of the Home Office force,
officers and directors are so arranged
by the typewriter as to form a Christ
mas tree decorated with candles. Miss
Hilda Peterson was the typist who exe
cuted this unusual greeting.

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

DES MOINES, IOWA

“ OUT OF THE W EST COMES THE BEST”

Banks Appreciate
National Life Service
F A R M E R S N A T IO N A L B A N K
Shenandoah, Iow a .
Jan uary 25, 1924.
N ational L ife A ssocia tion .
Gentlem en :
On b ehalf o f M r. H artm an
and ourselves I want to thank
you fo r you r very prom pt a c
tion . . . in sending you r d raft
fo r the paym ent of life in su r
ance on M rs. H artm an. T his is
certa in ly a record so fa r as we
know . . . .
T o u rs v ery truly,
(S ig n e d ) C. A . W E N S T R A N D ,
P resid ent.

A Quarter
C entury
of
S ervice

Banks coming into contact with
National Life service tell us it
has brought them a new and
deeper appreciation of the ben
efits which pure protection in
surance makes possible.

National Life Association
HOME OFFICE:

DES MOINES, IOWA

THE

NORTHWESTERN

BANKER

January, 1925

Former School Teacher Breaks Monthly
Production Record
ERE is Joe Tom Eubank’s own
story of his successful drive to
break all world’s records for the
number of applications written within
thirty days. This story, received at the
home office of the Aetna Life Insurance
Company, tells how the man Avho gave
up school teaching hardly more than a
year ago, went out into the field and ac
complished the almost unbelievable feat
of writing 406 applications in one month,
with 381 of them examined. Although
working through the Gordon H. Camp
bell Agency of Little Rock, Ark., Mr.
Eubanks confined his selling to White
county, the largest town of which is
Searcy, with a population of 2,800.
In his letter to Agency Secretary K.
A. Luther, Mr. Eubanks says :
“ I first made up my mind to do this
job and went home and told Mrs. Eu
banks what I had decided to do, and like
any other brave woman she said that we
could do it. I then announced through
the local press what I expected to do,
starting the newspaper campaign about
October 20th. I engaged a half-page

space and kept this till November 15th at
which time I engaged a full-page space.
I changed my advertisements almost
daily and employed all my talents in ad
writing, keeping the public thoroughly
advised of my purpose.
“ I let it be known from the very start
that it was their contest as well as mine,
and that we were engaged in a great
game, as it were, wherein Searcy, White
county and Arkansas were in a contest
to surpass the whole world in the num
ber of applications written in one month.
I kept telegrams from prominent bank
ers, state managers for the great insur
ance companies, state governors, and
other prominent men throughout the na
tion constantly before them. I also kept
the Aetna’s rates before them daily. The
public was thoroughly aroused and it be
came not an I ’ but a Ave’ proposition.
“ Everybody boosted for me and I
worked as no other man has ever worked
before unless it be one of the former
champions. However, I want to add
right here that I determined not to so
licit insurance more than eight hours a

day and I never used the full eight hours
any day. During those hours I did noth
ing but solicit insurance applications,
doing my ad writing and bookkeeping at
night.
“ The first twenty days of the month
I spent in the country districts and in
smaller towns, as a large number of let
ters had been sent the people by Mr.
Campbell and also myself, and they knew
exactly what I wanted when I ap
proached them. Up to the 20th I had
written about two hundred applications
on farmers and housewives, and then I
came home to Searcy to wind up the
contest. I need not tell you that I had
the cooperation of my town, for the re
sult tells the story. I wrote farmers,
bankers, merchants, teachers, barbers,
dentists, ministers and men and women
in all walks of life. People who had
vowed that they would never buy an
other cent’s worth of insurance came to
me and took a policy to help out. I
wrote fifty-nine applications in one day
and anybody knows that this is physical
ly impossible without having the public

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A P ro g re s s iv e S ta te
The North Star State
The first known white explorers to visit the territory
now known as the State of Minnesota, were Radisson
and Groseilliers, 1658-1659.
In 1673 Joliet and Marquette explored this region.
The Treaty of Versailles, 1763, transferred the western
portion of this territory to Spain. That part east of
the Mississippi was ceded to Great Britain.
Great Britain surrendered its title to the Treaty of
Paris, 1783, and it was made part of the Northwest
Territory by ordinance of 1787.
The western part remained under Spanish control until
1803 when, after having been retransferred to France,
it became a part of the United States with the Louisi
ana Purchase.

Royal Union Life
Insurance Company
F. L. TUCKER, Northern Manager
417 Palace Building
Minneapolis, Minnesota

In 1823 the first steamboat reached St. Paul.
Since that time the progress of the state in farming,
industry and education has formed a bright spot in
American history.

Paid to Policyholders, Over $17,000,000.00

Insurance in Force, About $125,000,000,00

nÀ'AAA'A'AArt'A'àVrt'A'/V'A'AA'AAAA'A'A'À'À'A'A'A'A'A'A'A'A'A’A'AÀ'A'A'A'A'A'A'A'A^llV/V'A'AÀ'A'À'A'AAA'ArtA'A'A'AAA

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

January, 1925

THE

thoroughly aroused and in a very recep
tive mood.
“ I sat on the running board of a Ford
car and wrote nine applications without
getting up, all the nine applicants tak
ing their blanks and going to the exam
iners unattended.

NORTHWESTERN

BANKER

with my family and went in another di
rection in the afternoon and wrote eight
applications, making a total of fifteen
that day.
“ I am ready to make an affidavit that

I Avorked less than two hundred hours
during the month and Avrote and had ex-

“ As I have said before I made up my
mind to do it and it was done by hard
Avork, careful management, stick-to-itiveness and a determination that must
never die in any salesman if he suc
ceeds. You may call us human dynamos
and other names, but we are getting
business in abundance Avhere the casual
caller agent has failed and will continue
to fail.

“ Another thing I practice as an agent
is never to fight another company or
agent. While I know the Aetna Life is
one of the very greatest of insurance
companies in this country, and even al
though I am thoroughly Aetnaized, I do
not fail to recognize that there are hun
dreds of great and good companies, and
that they all have something good to of
fer the people.
“ I collected for 105 eases at the time
of writing the application, and have rea
son to believe I will make a high per
centage of delivery of the balance.
“ On Thanksgiving day I left home at
9 in the morning, went to the country
and wrote seven applications before
noon. I ran back home and ate dinner

JOE TOM EUBANKS

amined 381 applications. I Avrote in all
406 cases but some failed to be exam
ined. This gives me an application every
thirty-two minutes. I did not enter an
endurance contest, but a soliciting con
test instead. I might Avrestle it out with
some of the contenders at an endurance
contest.
‘ ‘ Of the 381 applications taken, 57
were on my old policyholders. The total
volume was $420,000. My lowest pro
duction was nine cases, and the great
est 59.”
Company to Insure Doctors
The Professional Insurance Corpora
tion, to provide indemnity for surgeons,
physicians, dentists and pharmacists for
claims resulting from personal injury or
death caused by error or negligence in
their practice, is being formed at Des
Moines. It will operate on the mutual
plan and will take into membership all
licensed practitioners, whether allo
paths, homeopaths, osteopaths, or other
professional men, the only requirement
being that their class is licensed in the
state in which they are practicing. The
contract provides payment of judg
ments, rather than indemnity. In other
words, if the policyholder is unable to
pay the judgment, that does not inter
fere with the complainant’s claim, the
money going directly to the person ob
taining the judgment.

for Progressive People
Mining, lumber, agriculture, manufacturing and a progressive people combine to make Min
nesota a great commercial state.
Rich in natural resources and raAv material Minnesota is able to send her products to the markets
of the Avorld by Avay of unequalled natural and artificial highAvays—namely, the Great Lakes
and seven navigable rivers. In addition, her large cities, Minneapolis and St. Paul, are the
natural terminals for a number of great raihvay systems.
Over these highAvays her products— iron ore,
to the marts of the Avorld.— and return in the
KnoAvn as the “'North S ta r” state this rich
star to life underAvriters looking for fertile

corn, Avheat, oats, lumber, flour, meats, etc., travel
form of money to her people.
and groAving commonAvealth beckons as a guiding
fields of business.

Royal Union production continues to shoAv a splendid increase in Minnesota. This company
gives cooperation and ser\dce to agents that act as a friendly “ North Star” in guiding their
efforts.

ROYAL UNION LIFE
INSURANCE COMPANY
Des Moines, Iowa
A . C. Tucker, President
W m . Koch, Vice President
D. C. Costello, Secretary

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

T II E

N 0 R T II W E S T E R N

BANKE R

January, 1925

Honk! Honk! Honk!
The following was sung with great
success at a recent luncheon of San
Francisco Pond of the Blue Goose:
(To the tune of “ Mister Gallagher
and Mister Shean” )
Chorus A
Oh, Mr. Gallagher, Oh, Mr. Gallagher,
Do you know they’re writing rain in
surance now?
All you have to do is het
That the weather will be wet,
If it is, they’ll send a nice fat check to
you.
Oh, Mr. Shean, Oh, Mr. Shean,
You must think that I am very, very
green,
Even though the rates are high,
Who would want this country dry?
Think of Bryan, Mr. Gallagher,
Get a rain check, Mr. Shean.

A SERVICEBankers Like and Customers
Appreciate
banker has certain purposes he de
ll HSI s*res accomPlish. One of which is to
the mission that a real banker in
his community should— that is to inspire
the young man and the young woman to do the
things worth while. To also help the young folks
as they start out together so that their lives will
be a success financially.

i_ilES fulfill

The responsibilities o f the banker do not permit
him to give his whole-hearted attention to encour
aging this inspiration. Yet it has been found that
by employing certain mediums this can be at
tained.
A medium that has interested hundreds and
hundreds o f bankers during the last two years
and which has proven its merit, is at your com
mand.
A letter written to Wessling Services, Lytton,
Iowa, will bring you complete information.

LYTTON, IOWA

Chorus B
Oh, Mr. Gallagher, Oh, Mr. Gallagher,
Did you ever read the National ’Lectric
Code ?
I t ’s a book we all should prize,
And it comes in handy size,
Just the thing to pass the time with “ on
the road.”
Oh, Mr. Shean, Oh, Mr. Shean,
This small volume I confess I ’ve never
seen,
If the text is very deep,
It might put me off to sleep.
Oh, it ’s “ lightstuff,” Mr. Gallagher.
I ’ll inspect it, Mr. Shean.
Chorus C
Oh, Mr. Gallagher, Oh, Mr. Gallagher,
Tell me, have you bought yourself a
radio set?
I t ’s a wonderful affair,
You get stuff from everywhere,
If you’re married that’s not all that you
will get,
Oh, Mr. Shean, Oh, Mr. Shean,
I ’m afraid for radio I ’m not so keen,
And my relatives, I think,
Would soon put it on the blink,
Uncle Dudley, Mr. Gallagher?
No, ant-enna, Mr. Shean.
Chorus D
Oh, Mr. Gallagher, Oh, Mr. Gallagher,
Have you read that book they call the
“ Uniform Rules?”
What a wicked bunch of “ dope,”
I t ’s made many men lose hope,
For it ’s full of stuff they never taught
in schools.
Oh, Mr. Shean, Oh, Mr. f bean
Is there anyone who knows what those
rules mean,
All that “ junk” just out of spite?
Or did some poor duffer write
Ask the manager, Mr. Gallagher,
Merry Christmas, Mr. Shean.
I will maintain the humor to the last.—
Crowley.

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Federal Reserve Bank of St. Louis

THE

January, 1925

IO W A

NORTHWESTERN

BANKER

FARM M O R T G A G E

SE C TIO N

T h e N orth w estern B an ker Is the Official Publication o f th e
Iow a Farm M ortgage Association

OFFICERS
P r e s i d e n t ............................................................................E . H . L o u g e e , C o u n c il B lu f f s
V i c e P r e s i d e n t ............................................................... F r a n k B . M i l l e r , C e d a r F a l l s
T r e a s u r e r ................................................................................ F r a n k S a g e , W a s h i n g t o n
S e c r e t a r y .............................................................................. F . C. F i s h e r , C e d a r R a p i d s
E X E C U T I V E C O M M IT T E E
V a r i c k C. C r o s l e y , e x - o f f i c i o ............................................................................. W e b s t e r C it y
G e o . W . W i l l i a m s .............................................................................................. D e s M o i n e s
D a n i e l R h o d e s ........................................................................................................................ F o r t D o d g e
V a r i c k C. C r o s l e y ......................................................................................................... W e b s t e r C it y
C o u n c i l B lu f f s
E . H . L o u g e e .............................................................
I. C. S t a n l e y ........................................................................................................................... C e d a r R a p i d s
F . C. W a p l e s ..........................................................................................................................C e d a r R a p i d s

Farm Mortgage Not a
New Instrument
The fact that transactions in land and
land mortgages were made a matter of
definite agreement four thousand years
ago, by inscriptions on stone tablets, was
the inspiration for a unique window dis
play by the Midland Mortgage Company
of Cedar Rapids, Iowa, the past month.
A local newspaper, describing the dis
play, commented as follow s:
“ Within the ruins of another civiliza
tion where men made out tax lists on
forms of clay, where contracts were
drawn, and where receipts of delivery
were demanded in the form of strange
tablets, voices of the far distant past are
speaking to Cedar Rapids residents
through a strange medium. A collection
of Babylonian clay messages long before
the birth of Christ is on exhibit in the
window of the Midland Mortgage Com
pany.
‘ ‘ There is a bill of sale for 30 fat
sheep for which payment is promised
after one month and impressed with the
scribe’s seal. There is the business doc
ument found at Mugheir, the ruin of the
biblical city Ur where Abraham was
born.
“ The hieroglyphics refer to the three
columns of the invoice and is dated 500
years before the birth of Christ. It was
found at Babylon. There is in the win
dow a very rare tablet in the shape of
an envelope. The envelope has been
broken to show the contract contained.
1‘ In the window is a record of the tem
ple receipts with the cylindrical seal of
the scribe to prevent its being changed.
It is dated 2300 B. C. and was found at
Drehem.
“ There is the scribe’s seal comparing
to the king’s seal of a later date. It con
tains the name of his father in reverse
writing and the engraved figures of a
seated diety before whom is standing a
priest and a worshipper.

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Federal Reserve Bank of St. Louis

“ The butcher’s bill contains one fat
sheep, one lamb, one ram, and two ewe
lambs, killed for market, and delivered
on the twentieth day of the eighth
month. ’ ’
F. C. Waples, president of the Mid
land Mortgage Company, points out that
all through the centuries, the principles
of the business transaction have re
mained the same.
“ We who live in the day of the print
ing press, pulp wood paper, ink and type
writers little appreciate the patience it
must have taken to draw up a document
in clay and to engrave it with the hiero
glyphics that are found on many of these
tablets, or the patience it must have
taken to make an envelope o f clay.”
The tablets are the property of Edgar
J. Banks of Eustis, Florida. He is the
author of “ Bismya” or “ The Lost City
of Arab.”
A Growing Legion
For reasons heretofore stated in this
column the American Legion has not im
mediately come into controlling political
power, as did the Grand Army of the
Republic and the various organizations of
Confederate veterans in the south, after
the Civiil War.
The Legion is non
political.
But while the Legion is, and will con
tinue to be, non-political as an organiza
tion, it is inevitable in the south as well as
in the north, east and west, that its mem
bership will be united in all political
issues which involve preparedness, defense
and other questions in which soldiers and
patriots are in conflict with citizens who
dislike national military defense and seek
fundamental changes in our Constitution
—as illustrated in the present campaign
by La Follette’s proposal that Congress
be made the supreme judicial authority of
the nation on the constitutionality of its
own acts.
There is a tie that binds soldiers in any
cause together.
It groAvs stronger Avith

the years, and because of it the American
Legion Avill groAV stronger, we are now
convinced, although until recently the
apathy o f the boys in the matter o f organ
ization inclined us to a contrary opinion.
Their meeting at St. Paul must stimulate
membership all over the country, and
Avith wise leadership the organization will
be a strong influence for a generation.—

From Chicago Journal of Commerce.
What Is Pep?
Pep is the thing that makes colts
prance, old men dance and the spring calf
throw up its tail and gambol like a
lamb.
Pep puts in us a contagious courage,
an unflagging determination. It works
when the world sleeps.
It’s the salesman’s silent partner. With
pep, the salesman of service approaches
his prospect or customer A v ith a confidence
born of vitality.
Pep is the paprika, not the black pep
per.
Merchants with pep are usually pros
perous. Mechanics with pep are always
profitable and usually on the pay roll
permanently.
Pep is the thing that puts over a public
meeting. It causes the birds to sing and
the bullfrog to croak for his lady com
panion and call her attention to a wedding
certificate.
Pep is anything that makes a man
happy in his heart and giAres him a long
ing to share this happiness with someone
else.— Silent Partner.
Resigns at Corley
Joe Gross has resigned as cashier of
the Corley Farmers Savings Bank at Cor
ley, Iowa, and will make his future resi
dence in Omaha. Edgar Larson has been
temporarily selected to assume the duties
of the cashiership, s u c c e e d i n g Mr. Gross.
Mr. Larson was formerly cashier of the
bank.

THE

NORTHWESTERN

BANKER

January, 1925

FIRST NATIONAL IN NEW HOME
(Continued from page 23)

We Are
Approving Farm Loans
Now
For March 1st Closing

5%
Stanley-Henderson Company
Farm Mortgage Bankers
207-214 Higley Bldg.

Cedar Rapids, Iowa

A Protection

to Tour Clients
In settling estates the banker
must protect his clients’ inter
ests at every turn. In select
ing a memorial, fo r example,
many bankers now insist on
getting samples and prices
from such an old, nationallyknown house as Capitol Hill,
both fo r the saving to be made
and the better quality ob
tained.

Samples sent anywhere
on request

CAPITOL HILL MONUMENT COMPANY
100 E. LOCUST ST.

Established 1888

DES MOINES. IOWA

ings Bank, Lyons, Iowa; Henry Hansen,
Liberty Trust and Savings Bank, New
Liberty, Iowa; Jacob Jacobson, Bank of
Bishop Hill, Bishop Hill, 111. W. C. Burrman, cashier Northwest Davenport Savings
Bank, Davenport; Sol Hirsch, president
State Savings Bank and Trust Co., Moline,
111.; O. H. Seiffert, vice president State
Savings Bank and Trust Co., Moline, 111.;
E. J. Dougherty, Citizens Trust and Sav
ings Bank, Davenport; J. E. Brownlee,
Citizens Trust and Savings Bank, Daven
port; E. A. Smith, president Smith Trust
and Savings Bank, Morrison, 111.; R. P.
Palmer, Union State Savings Bank, Kewanee, 111.; S. L. Arter, vice president Kewanee State Savings Bank and Trust Co.,
Kewanee, 111.; Farmers Savings Bank, W il
ton Junction, Iowa; S. B. Nelson, cashier
Mercer County State Bank, Aledo, 111.; Ole
H. Olson, Peoples Savings Bank, Marengo,
Iowa; First Trust and Savings Bank,
Wheatland, Iowa; Charles Swartzlender,
City National Bank, Tipton, Iowa; Fred
A. Groeltz, Merchants National Bank, Ce
dar Rapids, Iowa; W. A. Templeton, Farm
ers Savings Bank, Wheatland, Iowa; M. S.
Heagy, Central Trust and Savings Bank,
Rock Island, 111.; L. M. Casteel, Central
Trust and Savings Bank, Rock Island, 111.;
J. A. Bradley, Farmers National Bank,
Geneseo, 111.; George B. Dedrick, president
Central Trust and Savings Bank, Geneseo,
111.; R. C. Shallberg, Peoples Savings Bank
and Trust Co., Moline, 111.; H. M. Engstrom, Peoples Savings Bank and Trust Co.,
Moline, 111.; O. F. Anderson, Moline Trust
& Savings Bank, Moline, 111.; Moline Trust
and Savings Bank, Moline, 111.; J. C.
Mackey, cashier Fifth Avenue Trust and
Savings Bank, Moline, 111.; V. A. Wigren,
vice president First National Bank, Galva,
111.; A. E. Anderson, L. M. Yocum & Co.,
Galva, 111.; L. B. Liitt. Manufacturers State
Bank, East Moline, 111.; A. E. Goetsch,
cashier Peoples Trust and Savings Bank,
Davenport; J. F. Putzier, Blue Grass Sav
ings Bank, Blue Grass, Iowa; Z. G. Suiter,
cashier Farmers Savings Bank, Princeton,
Iowa; R. O. Byerrum, Bettendorf Savings
Bank, Bettendorf, Iowa; C. A. Morrow,
cashier Joy State Bank, Joy, 111.; Roy F.
Bruce, cashier Industrial Savings Bank,
Davenport; Edward A. Smith, Smith Trust
and Savings Bank, Morrison, 111.; A. T.

5% F a r m L o a n s 5%
REFINANCE

YOUR

1925

LO A NS

N O W W H IL E R A T E S A R E CHEAP
WE ALSO M A K E 20 A ND 34 YEA R A M O R T IZ E D LOANS'

id l a n d

W E S T E R N IO W A O F F IC E
809 FRANCIS BUILDING
SIOUX CITY. IOWA

o r t g a g e

220 T H IR D A V E .
_ _ _

o m p a n y

C E N T R A L IO W A O F F IC E
, _ __, .

C E D A R R A P ID S , IO W A

CARROLL
IOWA

F. C . W A P L E S , P r e s i d e n t
C L IF F O R D D E P U Y , V ic e P r e s i d e n t
R. J . SO EN ER S e c re ta r y-T r easu rer
R . S . S IN C L A IR ,. V ic e P r e s i d e n t
C L A IR H . P O S T , A s s i s t a n t S e c r e t a r y
IN G R A M B IX L E R , V ic e P r e s i d e n t
P . T , W A P L E S , M g r . W e s t e r n O f f ic e

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Federal Reserve Bank of St. Louis

HOTEL FONTENELLE
HOTEL ROME
HOTEL LINCOLN
HOTEL MONTROSE
HOTEL MARTIN
HOTEL CATARACT
HOTEL CARPENTER
HOTEL LINDELL
THE WEST

Omaha
Omaha
Lincoln
Cedar Rapids
Sioux City
Sioux Falls
Sioux Falls
Lincoln
Sioux City

OPERATED BY

The EPPLEY
HOTELS CO.
E. C. E P P L E Y , P res.
Executive Offices: Hotel Fontenelle, Omaha
711 Steuer Bldg., Chicago, 111.

January, 1925

THE

Foster, Mechanics and Merchants Savings
Bank, Moline, 111.; P. V. N. Myers, cashier
Citizens Savings Bank, West Branch, Iowa;
B. M. Johnson, cashier Commercial Savings
Bank, Moline, 111.; T. C. Clark, First Na
tional Bank, Muscatine, Iowa; L. N. W il
liams, First National Bank, DeWitt, Iowa;
M. E. Strieter, vice president Bock Island
Savings Bank, Bock Island, 111.; W. G.
Johnston, cashier Bock Island Savings
Bank, Bock Island, 111.; W. Claude Harris,
Buffalo Prairie State Bank, Buffalo Prairie,
111.; B. C. Denkmann, Durant Savings
Bank, Durant, Iowa; First National Bank,
Aledo, 111.; Wilton Savings Bank, Wilton
Junction, Iowa; J. J. Lipton, cashier Pre
emption State Bank, Preemption, 111.; Les
ter M. Allety, cashier Farmers State Bank
of Sherrard, Sherrard, 111.; G. L. Mitchell,
First National Bank, Maquoketa, Iowa;
Hugo H. Stahl, vice president Home Sav
ings Bank, Davenport; H. O. Brownlie,
cashier Stockmen’s Savings Bank, Long
Grove, Iowa; P. J. Thede, Dixon Savings
Bank, Dixon, Iowa; Clifford De Puy, pub
lisher the Northwestern Banker, Des
Moines, Iowa; Bex V. Lentz, associate
manager the Northwestern Banker, Des
Moines, Iowa; C. H. MeNider, president
First National Bank of Mason City, Mason
City, Iowa; C. H. Brown, Galesburg Na
tional Bank, Galesburg, 111.; O. N. Custer,
vice president Galesburg National Bank,
Galesburg, 111.; Harvey S. Young, Wash
ington National Bank, Washington, Iowa;
E. G. Weismann, cashier LeClaire Savings
Bank, LeClaire, Iowa; C. J. Buymann, Se
curity Savings Bank, Davenport; Otto
Eckhardt, Security Savings Bank, Daven
port; Wm. Heuer, Hnion Davenport Trust
and Savings Bank, Davenport; Otto Hill,
Union Davenport Trust and Savings Bank,
Davenport; Smith Blackman, Union Daven
port Trust and Savings Bank, Davenport;
Joe Brus, Union Davenport Trust and Sav
ings Bank, Davenport; Mr. Wagner, Peo
ples National Bank, Bock Island, 111.; Mr.
Walters, Peoples National Bank, Bock
Island, 111.; M. W. Ingwersen, the Fulton
Bank, Fulton, 111.; H. S. White, cashier
Farmers National Bank, Cambridge, 111.;
C. S. Eastman, First National Bank, Cam
bridge, 111.; E. L. Harris, Federal Beserve
Bank, Chicago, 111.; Chas. A. Donnell, the
Mosler Safe Co., Chicago, 111.; L. B. Black
man, editor o f the Dispatch, Moline, 111.;
Walter J. Coleman, Commercial National
Bank, Peoria, 111.; Hugo Kuehl and Henry
Bunge, Peoples Savings Bank, Eldridge.

NORTHWESTERN

BANKER

FARM
LO AN S
A N N IS & R O H LIN G C O M PA N Y
COUNCIL BLUFFS, IOWA

Foreign Service to Banks
h is c o m p a n y
has exceptional facilities for
serving customer hanks engaged in inter
national transactions. Its three-fold foreign bank
ing organization— the Foreign Department in
N ew Y ork , offices in important cities, and corres
pondents in all parts o f the world— offers varied
facilities that are o f special value to its banking
customers.

A. nezv illustrated booklet just issued by us— “ Bank
ing Facilities in Europe” —describes this Company’s
European organization and the distinctive services
offered to clients through the Company’s foreign
branches. It zvill be sent on request.

Guaranty T rust Company
o f N ew York
NEW Y O R K
L IV E R P O O L

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

LONDON

P A R IS
HAVRE

B RU SSE LS
ANTW ERP

THE

NORTHWESTERN

January, 1925

BANKER

For Bankers and Their Wants
This department of TH E N O R TH W ESTE R N B A N K E R is to
assist SUBSCRIBERS in obtaining goods or service hard to
find. It is free. Use it. A S K US, as we can tell you where
to buy anything you need in your bank or for your bank.
TELL US, as your “ w ant” will be published under the above
heading free of charge. In answering classified advertise
ments which have key numbers please enclose a two-cent
stamp. This is used to forward your letter.

For Sale: One Burroughs bookkeeping
and adding machine, style 6505, No.
631223; 1 Baker-Vawter loose-leaf ledger
tray and cart; 1 13-foot cage counter—
all in good condition. Address Dr. W. F.
Carver, Fort Dodge, Iowa.— 12— 1—2.
Man with several years’ experience in
fire insurance business and several years
country bank experience desires bank
connection or will consider state agency
for a fire insurance company. Address
J. W. B., care of The Northwestern
Banker.— 11— 12— 1.
Wanted: Position in small bank with
chance for advancement. Age 22. Three
years’ banking experience.
Excellent
references.
Address No. 2756, The
Northwestern Banker.— 1.
Banking Position Wanted by experi
enced man with business college educa
tion. Willing to begin at the bottom.
Address No. 2757, The Northwestern
Position Wanted as cashier in small
bank, or assistant cashier in larger bank.
Nine years’ experience in county treas
urer’s office. Three years’ banking ex
perience. Best of references. Address
No. 2758, The Northwestern Banker— 9.
For Sale: Only bank in small northern
Iowa town. No borrowed money, large
cash reserve. Good school, Methodist
Church and located in good farming
community.
Address No. 2759, The
Northwestern Banker— 1.
Nature is a volume of which God is the
author.—Harvey.

Will Test Tax Law
In order to get a direct ruling of the
Nebraska supreme court as to whether
banks and trust companies are subject
to assessment under the intangible tax
law of that state, entitling them to pay
taxes at one-fourth the regular rate in
each governmental subdivision, a test
suit has been started in that tribunal by
three Lincoln institutions and will be
pushed to a speedy hearing.
National banks at Omaha failed re
cently in their suit in federal court to
prevent the assessment of their capital
stock and surplus for the full taxes.
Now the highest state court is asked to
decide the same issues as applying to
national banks, state banks, trust com
panies and joint stock land banks.
The action in supreme court is brought
by the Central National Bank, the Con
tinental State Bank, and the Lincoln
Trust Company, all of that city. Their
pleadings also refer to the case of the
Lincoln Joint Stock Lank Bank, which
has a separate suit pending in the fed
eral court, and which is not a party to
this one. All phases of the question are
thus consolidated for the attention of
the Nebraska high bench, so that every
thing can be settled in one comprehen
sive decision.
Permission was given by the supreme

court for the filing of the suit as an
original action there, and it will be set
down for hearing on some day during the
week of January 19. Dale P. Stough of
Lincoln has been appointed as commis
sioner to take testimony in the mean
time, and report his findings thereon to
the court.
Those named as defendants in the
case are three Lancaster county officials
— Treasurer A. E. Sutherland, Sheriff
Claude P. Hensel and Clerk J. P. Mor
gan. The relief prayed for is an in
junction to restrain them from taking
any action to collect as taxes more than
25 per cent of the amounts levied under
the assessment of 1923.
Treasurer
Sutherland recently caused distress war
rants to be issued for the unpaid taxes of
that year.
The outcome of this suit will decide
also what taxes the banks shall pay for
1924.
Ten days’ time is allowed the defend
ant officials to file their answer, and one
week for the plaintiffs to reply thereto.
All briefs must be in by January 12.
The absent-minded professor jokes are
with us again. We are thinking of the
prof, who kissed his shoes good night and
put his two daughters under the bed.—
Wisconsin Octopus.

Steel and Copper Engraved
S T A T I O N E R Y , B U S IN E S S
ANNOUNCEM ENTS AN D CARDS
F or
The

q u a lit y

H o m e s te a d

w ork

a d d ress

C o m p a n y , D e s M oines,

HIGH C LASS
W o r k m a n s h ip a n d Q u a lit y A s s u r e d
W h en Y ou O rder F rom

LEMARS PRINTING

COMPANY

M ASON C IT Y , IO W A

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Federal Reserve Bank of St. Louis

Sold in Iow a by

in stitu tio n s a re
T'HESE
p re p a r e d to sell q u a lity
m er ch a n d ise a n d fu r n is h
p ro m p t sh ip m en ts.

J. H . W E L C H P R I N T I N G CO .
1 1 6 6 -6 8 -7 0 S ix t h A v e ., D e s M o in e s .
P r i n t e r s , B in d e r s , M n fgr. Stationers.

FLOWERS AND SERVICE
ALPH A FLO R AL COM PANY
P h o n e W a ln u t 362
J . S. W I L S O N F L O R A L CO.
D r a k e 584
D E S M O IN E S

January, 1925

THE

NORTHWESTERN

BANKER

News of South Dakota Banks and Bankers
O fficial P u b lica tio n S o u th D akota B a n k ers A ssociation

EXECUTIVE COUNCIL
South Dakota Bankers Association
P r e s i d e n t . .F r e d B . S t ile s , V i c e P r e s i d e n t F i r s t N a t i o n a l B a n k , W a t e r t o w n
V i c e P r e s i d e n t , D e a n H . L i g h t n e r , C a s h . C it i z e n s T r . & S a v . B k ., A b e r d e e n
S e c r e t a r y .................................................................................................... L . J . W e l c h , M i t c h e l l
T r e a s u r e r ..........................................................................................F r a n k B o e r g e r , M i l b a n k

E i n e r J o h n s o n , G r o u p 1 .....................................C a s h i e r V o l i n S t a t e B a n k , V o l i n
F . M . E n r i g h t , G r o u p 2 .............P r e s i d e n t H o m e N a t i o n a l B a n k , D e l l R a p i d s
J. W . B r y a n t , G r o u p 3 . . V i c e P r e s . C o m ’ l T r u s t & S a v i n g s B a n k , M i t c h e l l
E . R . Z a l e s k y , G r o u p 4 ........................... P r e s i d e n t F i r s t N a t i o n a l B a n k , E l k t o n
T h o s . O ’ B r ie n , G r o u p 5 ................................P r e s i d e n t H o v e n S t a t e B a n k , H o v e n
T . E . G a g e , G r o u p 6 .....................................C a s h i e r F a r m e r s S t a t e B a n k , G r o t o n
C. D . S m it h , G r o u p 7 ........................... P r e s i d e n t F i r s t N a t i o n a l B a n k , L e m m o n
S. J. C la r k e , G r o u p 8 .................................. C a s h i e r F a r m e r s S t a t e B a n k , N e w e l l
J. W . S t e w a r t , G r o u p 9 ...........................P r e s i d e n t F a r m e r s S t a t e B a n k , D a l l a s

Vermillion County Meeting
Bankers of Clay county, South Dakota,
gathered at Vermillion recently for the
fifth annual convention of the county
organization. They were entertained by
Vermillion members, the session being
held in the high school building. The
domestic science class of the school had
charge of the dinner.
The program as carried out was as
follow s:
Address of welcome, E. M. Hart, vice
president of the First National Bank, of
Vermillion.
Stunts, The University Strollers.
“ Grain Marketing,” T. A. Black,
president of the Terminal Grain corpora
tion.
Address, Mr. Wymer, legal adviser of
the Sioux City Stock Yards organization.
Business meeting and election of offi
cers.
Question box, J. L. Mitchell, president
of the First National Bank, Sioux City,
Iowa.
Meckling was chosen as the place of
the next annual meeting. Henry Taylor,
Meckling, elected president; Miss Paul
son, Meckling, secretary-treasurer, and
Mr. Steele, Meckling, vice president.
Member banks are: Bank of Burbank,
Bank of Meckling, Bank of Wakonda,
Citizens Bank & Trust Company, First
National Bank, Vermillion National
Bank, all of Vermillion; State Bank of
Irene, and Wakonda State Bank.
Remodel Sioux Falls Bank
Several improvements have been re
cently made on the interior of the Min
nehaha National Bank of Sioux Falls,
South Dakota. Two new tellers’ win
dows, one for receiving and one for col
lections, have been installed, and a pri
vate office has been added for Assistant
Cashier C. D. Rowley. H. V. Harlan,
vice president, says the additional space
is necessitated by increasing bank busi
ness.

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Federal Reserve Bank of St. Louis

Rules on Bank Loans
In the supreme court opinions recently
handed down at Pierre, South Dakota,
were included a list of cases, one of the
principal ones being the Farmers State
Bank and John Hirning, bank examiner,
vs. T. L. Youngers and others, in which
the lower court at Turner county was re
versed in granting a demurrer in the
case. The main feature involved was
that of the liability of the officers and
directors of a state bank when a loan
had been made in excess of the legal
authority of the bank to make such a
loan. In effect, it is held that every
officer and every director is involved,
and that the liability in such case at
taches to all of them.
New Bank at Parker
Articles of incorporation have been
filed for a new bank at Parker, South
Dakota, to be known as the Parker State
Bank, with capital stock of $25,000 and
surplus $2,500. M. Plin Beebee and H.
E. Beebe, president and vice president,
respectively, of the Bank of Ipswich,
made the application.
Tripp Banker Marries
T. B. Koehler, assistant cashier of
the Dakota State Bank o f Tripp, South
Dakota, was married recently to Miss
Alvena Steffen. They are making their
home in Tripp.
Is Elected Cashier
W. C. Hinterman has been elected
cashier of the First National Bank of
Clear Lake, South Dakota, to succeed
Arnold E. Berg, who resigned.
Is Elected President
A. I. Tollefson has been elected presi
dent of the State Bank of Melette, South
Dakota, to fill the vacancy caused by the
death of the late R. H. McCaughey. Mr.
Tollefson, who has been with the bank
for the last 16 years, was the unanimous
choice of the directors, at their meeting

held recently. N. D. McArthur was elect
ed cashier to succeed Mr. Tollefson.
Industrial Activity Reviving
How the recent rise in security prices
only partially foreshadowed industrial
activity is reflected in The Bank of
America’s Chart of Business Barometers
for December. The production o f bitu
minous coal and crude oil declined in
November from October, as did also
building contracts.
However, produc
tion of pig iron and unfilled orders of the
United States Steel Corporation in
creased. While wheat and corn prices
rose, as did also the wholesale price
index, the price of cotton declined.
Freight car loadings also decreased.
Increases in the following financial
indices in November as compared with
October, were reported in The Bank of
America’s Barometers: Total reserves,
total earning assets and total circulation
of the Federal Reserve System, and also
total loans and discounts and total net
demand deposits of the member banks.
The ratio of reserves to deposits of the
Federal Reserve System and the ratio of
loans to deposits of the member banks
showed declines. Sterling and franc ex
change both rose. Commercial failures
again reversed the previous month’s
trend, both the number of failures and
liabilities decreasing. Bond and other
stock prices went up, as did also the
number of shares of stock sold.
Other financial, commercial and indus
trial indices and statistics included in
The Bank of America compilation relate
to banking, foreign exchange, securities
markets, production, commodities prices
and railroad operations.
It is a melancholy of mine own, com
pounded of many simples, extracted from
many objects, and indeed the sundry con
templation of my traveles, in which my
often rumination wraps me in a most
humorous sadness.— Shakespeare.

THE
TEN YEARS AGO TODAY
(Continued from page 19)

National Bank since it came into exist
ence in 1864, has been steady and con
stant. This is well-shown by a compari
son of the first statement, May 31, 1864,
and the last one on October 31, 1914:
May 31, 1864 Oct. 31,1914
Capital Stock ...$60,000.00 $ 2,500,000.00
Deposits ............ 41,922.92
27,516,049.76
Surplus & Undivi
ded Profits . . . 2,037.11
2,333,329.93

—1915—
Thirteen million bushels of corn were
raised in North Dakota this year, accord
ing to the North Dakota Development
league bureau in Grand Forks. The
value of the corn is fixed at approxi
mately $7,860,000, or $2,784,000 more
than a year ago. The total production
of this year is approximately 2,300,000
bushels more than last year.
In the last four years the increase in

NORTHWESTERN

corn has been exceptionally great and
is largely the result of the widespread
better farming movement.
—1915—
Frank Yetter, cashier of the Iowa Na
tional Bank, Davenport, has been elected
a member of the Greater Davenport
Committee. In referring to the election
Secretary Norwood of the Greater Dav
enport Committee said: “ Mr. Yetter is
well and favorably known in Daven
port, has the reputation of being inter
ested in everything that concerns the
welfare of the city and enjoys the con
fidence of the public to such a degree
that the members of the committee felt
that his election to membership was a
distinct acquisition. ’ ’
—1915—
C. T. Cole, Jr., vice president of the
Valley National Bank, Des Moines, was
recently elected president of the Des

1924

A D istinctive S ervice fo r Y ou r
N ew Y ork B usiness

THE

M echanics & M etals
National Ba n k
OF THE CITY OF NEW YO R K

Deposits, June 30, 19 2 4 , $288,000,000

G. W. McGARRAH
Chairman of the Board

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Federal Reserve Bank of St. Louis

BANKER

JOHN McHUGH
President

January, 1925

Moines Clearing House Association.
The other officers are A. O. Hauge, vice
president; Grant McPherrin, second vice
president and George E. Pearsall was
elected secretary for the nineteenth suc
cessive time. That Des Moines is rap
idly coming to the front as a financial
center, is indicated by the fact that bank
clearings in 1914 were $11,000,000 ahead
of 1913. The total for the year was
about $278,000,000.
— 1915—
*‘ The importance to this locality of
the International Trade Conference of
the Mississippi Valley and central west,
cannot be too strongly emphasized,” ac
cording to A. C. Smith, vice president
of the City National Bank, of Clinton,
Iowa, who attended the conference at
Memphis, Tennessee, as a delegate from
the Clinton Commercial Club, the Iowa
Bankers’ Association and the Greater
Iowa Committee. He served on the reso
lution committee at the conference,
which was attended by 103 delegates,
representing seventeen states.
Agricultural Conference
January 5 has been set as the date of
the next meeting of the President’s Ag
ricultural Conference, according to word
received from its chairman, Robert D.
Carey, of Wyoming. It is understood
that members of the conference will
come to Washington several days before
the next meeting in order that consider
able preliminary work may be done. It
is the plan of the conference, according
to Chairman Carey, to make immediate
recommendations to the president on re
lief for the cattle industry, now consid
ered an emergency problem. The sec
ond question is that of cooperative mar
keting and early recommendations are
anticipated. Members of the conference
have been giving attention to these and
other problems during the recess in order
that action might be made shortly after
reconvening.
Chairman Carey has addressed a let
ter to the presidents of the twelve
regional Farm Land Banks who will
meet in Washington the forepart of Jan
uary, suggesting a meeting between
them and the conference. Referring to
the emergency in the cattle industry
Chairman Carey said to the Federal
land bank presidents, in part :
“ While there are a number of things
to be considered in connection with the
cattle industry, the problem is largely
one of finance. As you and other presi
dents of the various land banks are in
close touch with the financial situation
as affects both the livestock man and
the farmer, I feel that if a meeting could
be arranged between our conference and
you, that you would be in a position to
give both some information and sug
gestions that would be most helpful to
us.

January, 1925

THE

In asking for a meeting with these
officials, Chairman Carey gave particular
attention to the cattle situation, but also
indicated that the conference would like
to discuss the whole situation of finance
as it affects agriculture and any other
suggestions which the bank presidents
might have along the lines upon which
the conference is now working.
“ Man Overboard’ ’
While ever-ready heroism is an inher
ent and expected quality of the American
sailorman, we have just heard of a no
table example which unquestionably de
serves a Carnegie medal.
After a really enjoyable winter evening
in a foreign port, a seaman, returning to
his ship, staggered up the gangway, only
to lurch just as he was about to take the
final step, and topple into the icy ocean.
Instantly the boatswain’s shrill pipe hur
ried all hands on deck, as the word “ Man
overboard” was frantically passed. The
lifeboat’s crew leaped to their perilous
duty. Searchlights sizzled and shot weav
ing beams of white into the black night.
A shower of life buoys was flung over.
But the gallant sailor in the water grasped
the whole situation thoroughly, and was
equal to it. From the darkness and
splashing came his cheery, guttural:
“ H ey! Where’sh ish poor drownin’
guy? I’ll save ’im!”
BETTER TIMES AHEAD
(Continued from page 10)
be profit on live stock marketed in the
immediate future, particularly where
there has been utilized the usual roughage on the farm; also, corn of inferior
grade. The wheat crop was sold on a sat
isfactory and profitable market, although
the farmer did not benefit by the more
recent rise in the market. In spite of
profitable farm operations, agricultural
producers continue to practice utmost
economy and, in most instances, are ap
plying their profits to indebtedness cre
ated during the past years. There seems
to be a gradual thawing out of such as
sets as were frozen. Both wholesale
and retail trade report at least moderate
improvement in the agricultural sections
and it is generally felt that these im
provements will continue for some time
to come. It is hoped that the general
standing of agricultural producers and
country merchants will gradually become
normal. Summarizing, the future out
look is as good as one can expect and,
therefore, satisfactory.”
—$—
Charles B. Mills, president The Mid
land National Bank of Minneapolis:
“ Present conditions point to a good busi
ness year for 1925. This district has, on
the whole, had a good crop and the prices
have been very favorable. This condi
tion was brought about largely by crop

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

failures to other important grain produc
ing areas of the world. For the North
western farmer who has been laboring
for years with poor crops and poor prices
it was a God-send. The price of wheat
has been steadily rising and already one
car of very exceptional quality from
Montana has sold for $2 per bushel on
Minneapolis market. Due to the favor
able wheat crop, liquidation has pro
gressed satisfactorily in the wheat grow
ing areas, though this crop cannot be ex
pected entirely to restore the district to
normal conditions.
There are many
frozen loans yet to be liquidated and this
work will require considerable time.
Confidence in the smaller banks is being
restored, and this is evidenced by rising
deposits. Balances of country banks with
city correspondents are large, and there

is little demand for loans by country
banks. In some parts of the Northwest,
the value of this year’s crop has been
equal to the value of the land upon which
it was grown, thus showing the excep
tional opportunity for investment in
good quality of cheap lands. Due to the
succession of poor crops and poor prices
in this district, the farmer has been com
pelled to keep down his overhead and to
limit his purchases to bare necessities.
Even the purchase of essential farm
equipment has been delayed, and a por
tion of the proceeds of the 1924 crop will
be used to replace worn-out equipment
and to make necessary repairs to build
ings. The Nation should not forget, how
ever, that much of the returns of the
crop will go toward liquidating debts
which have been incurred by the farmer

IN A B E R D E E N
we stand ready to serve the
financial and commercial
interests of this territory.

Citizens Trust & Savings
Bank
ABERDEEN, SOUTH DAKOTA

C. N. HERREID, President

THE

during the years of depression. After
these have been cleared away, his real
purchasing power may then be better es
timated. He will then have a different
point of view on economic and political
questions. In North Dakota, particular
ly, weather conditions have been favor
able. Because of the unusual fall, har
vest and threshing were delayed and, as
a result, the North Dakota farmers, more
than those in other states, have consider
able grain yet in their hands. The
weather has reduced the amount of fall
plowing, thus preventing an increase in
grain acreage. The farmer, therefore,
will plant this acreage with feed crops.

NORTHWESTERN

The success of wheat raising this year,
however, has not blinded the farmer to
the necessity of diversified farming, and
this will continue to make progress. In
terest rates in the Twin Cities during
1924 reached the lowest that they have
been for many years. Deposits have ap
proximated the high levels of the periods
during and subsequent to the war. Sav
ings deposits have considerably risen
since June. Too much credit cannot be
given the Federal Reserve system for
the inestimable value of its services to
the Northwest wherein conditions are
fast approaching a more stable position.

Character
The Best of all Collateral
The late J. P. Morgan said:
“ I h a v e k n o w n a m a n to c o m e in t o m y o ffice,
a n d I h a v e g iv e n h i m a c h e c k fo r a m illio n
d olla rs w h e n I k n e w t h e y h a d n o t a c e n t in th e
w o rld .
T h e fir s t th in g is C h a r a c t e r .
B efo r e
m o n e y o r a n y t h in g e ls e. T h a t is t h e ru le o f
b u s i n e s s .”

C h a r a c te r in Business is reputation for integrity,
sincerity and genuine business ability. It does not
spring into being over night. It is the creature
o n l y of slow development.
When an enterprise takes the Banker into its confi
dence, and makes a practise of submitting a periodi
cal Detailed Audit Report, i t b u ild s C h a r a c te r .
The Detailed Audit Report, above all other factors,
serves to establish a relationship of mutual under
standing and trust between Banker and Business
Man. It is the o n e instrument that can give the
Banker a complete picture of a business in all
essential details. It is the o n l y instrument that
can satisfy him that his client does business on
facts, based on dependable figures.
Under present conditions, when money is com
paratively easy to borrow, the Detailed Audit Re
port not only builds C h a r a c te r , which is t h e b e s t
o f a ll C o lla te r a l, but c h e c k s against over-bor
rowing and p r o t e c t s against the dangers of lapsed
maturities.

ERNST & ERNST
A U D IT S

—

SYSTEMS

TA X S E R V IC E
NE W YO RK
BUFFALO
ROCHESTER
BOSTON
PROVIDENCE
PHILADELPHIA
B ALT IMO RE
R ICH MOND

CLEVELAND
C IN CINN ATI
TOLEDO
COLUMBUS
YOUNGSTOWN
AKRON
CANTON
DAYT ON
LO UIS VILLE

DE TROIT
G R A N D R APIDS
KALAMAZOO
P I TT S B U R G H
W H EELI NG
ERIE
CHICAGO
M ILW AUK EE
MEMPHIS

M IN NE A PO LIS
ST. PA UL
DAVENPORT

LOS ANGELES
ATLANTA
NEW ORLEANS
DALLAS
HOUSTON
FO RT W O RT H
SAN ANTO NIO

INDIANAPOLIS
ST. LO UIS
K A N S A S CITY
OMAHA
DEN VER
WACO
SAN FRANCISCO

T A X O F F IC E : 9 1 0 TO 918 M U N S E Y BLDG.. W A S H IN G T O N . D. C.

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Federal Reserve Bank of St. Louis

BANKER

January, 1925

Frank 0. Wetmore, president First
National Bank, Chicago: “ Our country is
entering upon the new year with a feel
ing of considerable confidence as to the
immediate future. It is to be hoped, how
ever, that this may not result in overconfidence and in a new period of specu
lation and inflation. We are still con
fronted with an apparent excess plant
capacity in this country brought about
by war conditions. The inclination on the
part of all business so situated is to fill
the plants with business in order to re
duce the relative overhead. These factors
combined with the present spirit o f op
timism might readily lead to another
period of over-expansion. Undoubtedly,
the good sense of the American business
world will prevent such developments.
Demand for bank credit and interest
rates in the beginning of. the year were
steady, but in recent months discount
rates have been unusually low in a pe
riod of the year when the greatest de
mand for money exists. On the whole,
however, banks have not suffered, ow
ing to the fact that though the rate of
profit has been lower, the volume of busi
ness somewhat made up for the loss.
This condition is likely to continue dur
ing the earlier part of next year, while
the developments in the latter half of
next year must depend to a very large
extent upon the prospects of crop con
ditions in June and July.”
— $—
A. F. Dawson, president First Na
tional Bank, Davenport, la .: “ There is a
general feeling in the financial, commer
cial and industrial world that the pros
pects are good for a continued improve
ment in business throughout the coun
try during the coming year. There are
sound reasons for this belief. Underly
ing the general situation is a feeling of
confidence and stability, both in the pol
icies of our Government and in the op
portunity for improved business during
the year 1925. The nation has been slow
ly but steadily recovering from the eco
nomic excesses of the war and the few
boom years following the war. The coun
try is well along on the road to recov
ery and the future should show improved
conditions over those immediately be
hind us. The recovery o f the great basic
industry of agriculture is still incom
plete, but the year 1924 will show a
larger total of created wealth on the
farms than the year 1923. I believe agri
culture will make further and greater
advances during 1925 to a position of
prosperity which it is entitled to enjoy.
Better methods and greater diversifica
tion of production, plus increased facil
ities for orderly marketing, should show
a substantial improvement in the year
just ahead of us. European conditions
are becoming more settled and the United
States should feel the benefit of in
creased export business.

January, 1925

THE

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

NEB R A S K A

BANKER

BANK

N EWS

O F F I C E R S O F T H E N E B R A S K A B A N K E R S A S S O C IA T IO N
P r e s i d e n t ................. H . H . M c L u c a s , V ic e P r e s i d e n t , H a r b in e B a n k , F a i r b u r y
C h a ir m a n E x e c u t i v e C o u n c i l . . . C . A . S m it h , V i c e P r e s . T i l d e n N a tl. B a n k
T r e a s u r e r ........................... .................. J. D . M c G u i e l s , O m a h a S t a t e B an k ., O m a h a
S e c r e t a r y ................................ W m . B . H u g h e s , 908 W o o d m e n B u i l d i n g , O m a h a
G e n e r a l C o u n s e l . .E d w a r d M. M a r t in , B r a n d é i s T h e a t e r B u i l d i n g , O m a h a
H . G. W e l l e n s i e k . . .
C a r l W e i l ......................
H . C. N i c h o l s o n . . . .
F red K u e n n e t h ....
S. J. W e e k e s ...............
M a rk S p a n o g le
D an V S t e p h e n s ...
G e o rg e W . W o o d s ..
J H. D o n n e l l y ..........
J. B. G i b s o n ...............
W a l t e r M. R o d m a n
P. L. H a ll . J r ..............
C. A. S m i t h .................
I. R . A l t e r ....................
W . P . R o o n e y .............
F . W . T h o m a s ..........

E X E C U T I V E C O U N C IL
.................................................. P r e s i d e n t H a r v a r d S t a t e B a n k
V ic e P r e s id e n t N a tio n a l B a n k o f C o m m e r c e , L in c o ln
............ V ic e P r e s i d e n t B a c k e r s N a t i o n a l B a n k , O m a h a
.............V i c e P r e s i d e n t F i r s t N a t i o n a l B a n k , H a s t i n g s
...............................................P r e s i d e n t O ’ N e ill N a t i o n a l B a n k
................................................................C a s h i e r B r i d g e p o r t B a n k
’.................................................. P r e s i d e n t F r e m o n t S t a t e B a n k
.................................. C a s h i e r L i n c o l n S t a t e N a t i o n a l B a n k
.....................................................C a s h i e r S t a t e B a n k o f O m a h a
........................... P r e s i d e n t N e b r a s k a S t a t e B a n k , N o r f o l k
.........................P r e s i d e n t A m e r ic a n S t a t e B a n k , K i m b a l l
...........................C a s h i e r F i r s t N a t io n a l B a n k , G r e e n w o o d
................................ V i c e P r e s i d e n t T i l d e n N a t i o n a l B a n k
....................C a s h i e r F i r s t N a t i o n a l B a n k , G r a n d I s l a n d
................................ C a s h i e r C h a d r o n S t a t e B a n k , C h a d r o n
....................V i c e P r e s i d e n t F i r s t N a t i o n a l B a n k , O m a h a

W hat Nebraska Bankers A re Thinking
and Doing
Fred Thomas, vice president of the
First National, Omaha, had occasion re
cently to regret that his early boyhood
training specialized too much on work
rather than play. Banker Thomas was
the recipient of an invitation from bank
ers and friends along the Mexican bor
der, to participate in a hunting expedi
tion via aeroplane, a somewhat novel
method of running down wild game of
the earth and air, but perfectly legal in
Mexico if not in the United States. Mr.
Thomas admits that he is not a proficient
hunter, having passed up that type of
recreation in his youth for the sake of
work. Hence, he declined the hunting
invitation.
0. T. Alvison, cashier of the Omaha
National Bank, has been busier than the
proverbial cranberry merchantman on a
Thanksgiving morning during the past
month. Reason: Merger of the Corn Ex
change National Bank of Omaha with
the Omaha National. The deal was one
of the largest of recent years in the
Omaha banking field, and was effected
with all the smoothness and attention
to detail for which the Omaha National
had always been noted. The actual me
chanical transfer of money, records and
accounts was accomplished over a single
week-end. Omaha newspapers devoted
much space to a description of the trans
fer of a regular mint of money from the
Corn Exchange to the other bank, by
means of a huge truck guarded by a
score of burly policemen armed with
sawed-off shotguns.
The transaction
added some three million to the coffers
of the Omaha National deposits. Small
wonder that the faces of Messrs. Head,
Smith, Clark, Alvison, et ah, were alight
with the glow of work well done.

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Federal Reserve Bank of St. Louis

............................... .
Editor’s Note— The brief chats about
banks and bankers that you know, given
on this page, were inspired by a recent
week spent in the cities of Omaha and
Lincoln, by R. W . Moorhead, editor,
and Rex V . Lentz, associate manager of
the Northwestern Banker.
lltHlllllllllimilUnillllllHlIHIIIHHHIHIIIIIIIIIIIIIIIIHIIIIIIIIUIIIIIIUIIIIIIIHIIIIIHIIIIIIItlllMIIIIHMIIIIIIIIIIIItlllU

The Peters National Bank of Omaha
is quite proud of its splendid display of
corn on exhibit during the past few
weeks in the central front lobby of the
bank. Nebraska has every reason in the
world to be proud of its golden corn crop
which has made it one of the states in
the Union reported by statistical bureaus
as “ Business excellent” during recent
weeks. Harry Smith, assistant secre
tary, says this exhibit is an annual affair
and that this year’s display surpasses
all previous ones in quality and size.
Corn from other states such as Iowa, and
South Dakota, was on display, together
with the Nebraska product, for purposes
of comparison. It would seem that Iowa
had best look to its laurels, else it won’t
be the only state in the Union eligible
to sing, “ That’s Where the Tall Corn
Grows.”
H. Wood, banker at Louisville, Ne
braska, and mathematical wizard who
mystified delegates to the 1924 Nebraska
convention in Omaha, may have a rival
in O. T. Eastman, vice president o f the
Merchants National, Omaha.
Banker
Eastman modestly (and in entire serious
ness) admits that he saw through most
of the arithmetical stunts done but not
explained by Mr. Wood at the Omaha
meeting. “ As bankers, we’ve learned
to do a lot of mysterious figuring the

past few years,” says Mr. Eastman, who,
incidentally, looks forward to a good
business year in 1925 for the Merchants
National as well as other Nebraska
financial institutions.
W. E. Rhoades, vice president, Gwyer
H. Gates, cashier, and other members of
the officiary of the United States Na
tional Bank of Omaha, are enthusiastic
over the new banking home now being
constructed for that institution. Cashier
Yates seems to be the Generalissimo de la
Constructione of the new building— no
small job, as other bankers who have
gone through a rebuilding experience
can testify. Mr. Yates, it seems, has had
recent experience in dealing with plumb
ers, carpenters, and bricklayers’ unions,
since he will soon move into a new resi
dence planned and built by himself, and,
consequently, was the logical man to
shoulder the burden of the bank project.
Assistant cashier and all-round handy
man in one of the most progressive banks
in Nebraska wasn’t title enough for
J. Kessler Jones, of the Packers Na
tional Bank of South Omaha. Hence,
he took over a brand-new job recently
(a night-and-day position, by the way).
The new position gives him the title of
“ Daddy,” with a rollicking, bouncing
baby boy to hold, cherish, and rock to
sleep.
J. F. Coad, veteran president of the
same institution, has a distinct weakness
for football games. During the past fall
he took in several of them, including
Nebraska university games, and games
played by Creighton and Ames, Iowa.
Banker Coad has a specific interest in
the progress, both scholastically and ath-

THE

NORTHWESTERN

BANKER

January, 1925

letically, of Ames, since he has a son
going to school at that institution.

UR experience, and location here at the
“ Omaha Market,79 insures for you a spe
cialized service in handling your live stock busi
ness— an important service to you and your cus
tomers.
O

We Invite New Business

UNION S T O C K Y A R D S

O
M
AH
A

Pressed Steel Tank Company
First Mortgage 6 ^ % Serial Gold Bonds

Dated October 1, 1924

Due Serially 1926-1939

Priced to yield 6 .0 0 % to 6 .5 0 %
according to maturity
F u lly d escriptive circu lar on req u est

A.C.ALIYN andc o m p a n y

P. R. Easterday, vice president of the
First National Bank at Lincoln, is
mighty proud of the growth of the First
National Bank and First Trust Company,
affiliated institutions, during the past
few years. Particularly during the past
few weeks, says Mr. Easterday, have
Nebraska banks been able to detect the
healthful growth of bank deposits.
Bumper wheat and corn crops through
out the state, marketed at the best
prices in years, is the reason for the in
crease, declares Banker Easterday. De
posits of the First National are over
nine million, according to a recent state
ment of condition.
Meeting at Potter
At a meeting of the Cheyenne-KimballBanner County Bankers Association,
held at Potter, Nebraska, on the evening
of Friday, December 12, the following
officers were elected for the ensuing
year: Marius Christensen, cashier of the
Liberty State Bank of Sidney, Nebraska,
president; J. H. Foster, president of the
Farmers State Bank of Dalton, Nebraska,
vice president; C. A. Larson, president
of the Potter State Bank of Potter, Ne
braska, secretary; E. A. Linn, vice pres
ident of the Bank of Kimball, treasurer.
Resigns at Bartlett
C. L. Bishop has resigned as cashier
of the Bartlett State Bank, of Bartlett,
Nebraska, to accept a position in the
Soldiers Home at Grand Island. He is
succeeded at Bartlett by Raymond Pratt,
of Bartlett.

E STA B LISH E D 1912

71 W . Monroe St.
N E W YO R K

CHICAGO

M IL W A U K E E

Phone State 6440

M IN N EA PO LIS

Hammond Quality Bank

BOSTON

Supplies

WHEN YOU BUY YOUR SUPPLIES FROM HAMMOND YOU CAN
BE ASSURED OF THESE THINGS—
Quality, Fair Price, Prompt Shipping Service
O R D E R FR O M T H E F O L L O W IN G
W e are glad to subm it p rices
P ostin g M achine L ed ger Sheets
P ostin g M achine Statem ents
B ank D rafts and Sight D rafts
C ertificates o f D eposit
C ustom ers’ Checks
P ock et Checks
N otes and N ote N otices
C ashiers’ Checks
L etter H eads. E m bossed and L ith ograp h ed
Statem ent F old ers
L oose L ea f L edgers
P ostin g T rays
L ed ger Sheets, Pen or P ostin g M achine
R em ittan ce Sheets, P en cil or T yp ew riter

C ollection L etters
Pass B ooks
B ank R egisters
L oose L e a f D raft and C. D. R egisters
D a ily Statem ent B ooks
Leath er P o ck e t Check Covers
M ailin g Cards
D ep osit T ickets
C ounter Checks
F ilin g Cabinet Supplies
Card C abinet Supplies
L ia b ility L ed gers
R u b ber Stam ps
Office A p pliances

Send fo r Catalog

H A M M O N D P R IN T IN G C O M P A N Y
FR E M O N T , N E B R A S K A
F . G. P L U M M E R , R ep resen tative, F ra n k lin H otel, D es M oines, Iow a

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Federal Reserve Bank of St. Louis

Platte County Meeting
J. W. Svoboda, cashier of the Lindsay
State Bank, Nebraska, was elected presi
dent of the Platte County Bankers’
Association at their meeting at Colum
bus.
Other officers elected were Walter
Luers of Columbus, vice president; J. A.
Hauser of Platte Center, secretary; Tom
Werner of Humphrey, treasurer.
All banks represented in the meeting
agreed to reduce the interest on time de
posits to 4 per cent. One bank in the
county was not represented and it is
not known whether it will agree to the
reduction or not. The cut will not be
made unless all join in the reduction.
The rate has been 5 per cent.
First National, Wausa
J. S. Larson was elected first vice
president of the First National Bank of
Wausa, Nebraska, at a recent board
meeting. Other officers include: Emil
Engdahl, president; J. S. Larson, Alf.
Nyquist, vice presidents; C. M. Baird,
cashier; Helen C. Johnson, assistant
cashier.

January, 1925

THE

New Bank at Dodge
The Dodge State Bank is the name of
a new institution recently opened at
Dodge, Nebraska, under the supervision
of Dan Y. Stephens, well known Fre
mont banker. The new bank is planning
to take over the assets of the First Na
tional Bank of Dodge which was closed
a few days ago, just as soon as the af
fairs can be put in shape for the new
bank to take them over. The officers of
the new bank are Dan V. Stephens,
president; C. J. Borgmeyer, cashier.
Cut Interest Rates
Banks throughout Platte county, Ne
braska, will cut the rate of interest they
pay on time deposits to 4 per cent De
cember 1st. The present rate, which has
been in existence since war days, is 5 per
cent. The change is, in effect, a return
to the pre-war basis.
In going back to the 4 per cent rate,
the banks of Platte county are only fol
lowing a precedent established by the
banks of practically all other central and
east Nebraska counties, some of them
having done so as long as a year ago.
Four per cent is the prevailing rate in
every county surrounding Platte.
Nebraska Prosperous
Nebraska is entering a new era of
prosperity, farm mortgage bankers of
the state agreed at their annual confer
ence in Omaha.
“ Farmers throughout the state are
optimistic, ” said C. C. Carson of Lin
coln, retiring president of the associa
tion, who has just returned from a trip
through western Nebraska.
C.
E. Reynolds, president of the Fed
eral Trust Company, Lincoln, was elected
president of the association. Other offi
cers : First vice president, L. S. Clark,
Kloke Investment Company, Omaha;
second vice president, C. W. Mead,
Omaha Trust Company, Omaha; secre
tary-treasurer, Mark Martin, Omaha, re
elected ; executive committee, H. F.
Rohling, Annis & Rohling, Council Bluffs,
la .; George Forgan, Forgan Investment
Company, Omaha, and E. B. Drake,
Omaha Bond and Mortgage Company.
Harlan County Bankers Meet
The Orleans bankers entertained the
Harlan county bankers at a dinner at
Orleans, recently. About twenty were
present. Hon. A. C. Shallenberger ad
dressed the group on the subject of
“ Agricultural Prospects of the Imme
diate Future.” He discussed the matter
of feeding the stock or selling the grain,
whether it is advisable to market corn
now or hold for higher price, and he also
discussed a few of the bills of interest to
farmers and bankers in agricultural
communities, which came up in the last
congress.
Attorney 0. E. Shelburn
spoke on “ Common Errors Made in

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

Writing Chattel Mortgages.” F. Crone
of Stamford and C. H. Wear of Orleans
gave reports on the last State bankers’
convention which they attended at
Omaha. The next meeting will be held
in Stamford some time in January.
Make Field Tours
Officials of the Guarantee Fund Life
Association, of Omaha, have been making
numerous field inspections and tours re
cently, in the interests of their rapidly
growing agency force, and to take care
of their investment business. J. C. Buf
fington, president, with R. E. Langdon,
secretary, and J. F. Milligan, assistant
secretary, were out on a ten-day trip
through western Nebraska, to inspect
farm loans. F. A. Hicks, superintend
ent of agents, has been on an inspection
trip, which included Chicago, Detroit,
and as far east as Indiana. Messrs. Buf
fington, Langdon and Milligan report
farm loan conditions much improved as
the l’esult of better crops and better
market prices.
New Bank at Bristow
The new Nebraska State Bank at Brsitow, Nebraska, has opened its doors for

business with J. B. Gibson, Norfolk, as
president, and E. E. Horn, same city, as
cashier. The new institution has an au
thorized capital of $25,000.
Is Elected Assistant Cashier
At a directors meeting of the Banner
County Bank, of Harrisburg, Nebraska,
Dr. C. S. Page was elected assistant cash
ier, to succeed Henry J. Haun, who re
signed. Mr. Page has been county clerk
of Banner county for the past few years.
Stockholm State Changes Hands
A deal was completed recently where
by 0. P. Johnson & Sons, long stock
holders and officers in the Stockholm
State Bank, Stockholm, Nebraska, dis
posed of their interests in the same to
George W. Berg and Arnold Berg. The
former will act as cashier and the latter
as assistant cashier of the bank. O. B.
Fornell and others of the old stock
holders still retain their interest in the
institution.
Mr. Stingy: Are you the bootblack
who shined my shoes last?
Bootblack (disgustedly): No, I only
been here a year.

The new viaduct is now com pleted
— elevating traffic and greatly fa
cilitating the handling o f live
stock— This is the first step o f a
series o f improvements to be
made at the Union Stock Yards.
H andling the proceeds o f shipments
must necessarily keep pace with
this growth.
Our location and experience enable
us to do this.

Stock Yards National Bank of South Omaha
O F F IC E R S
F o rd E . H ovey , P resid en t
F. J . E nerson, V ic e P resid en t H. C. M iller, A ssistan t Cashier
Jas. B. Owen, V ic e P resid en t W . L . P ier, V ice P resid en t
C. L . Owen, A ssista n t Cashier
J. S. K in g , V ic e P resid en t
W . H . D ressier, Cashier
T. G. B oggs, A u d itor

THE

Enlarges Bank Room
To meet the demands of increasing
business the First National Bank of Lin
coln recently adopted plans for the en
largement and rearrangement of its bank
ing rooms. This will be the third enlarg
ing alteration that has been necessary
since the erection of the building in
1911. During the thirteen years that the
bank has occupied its new building its
deposits have increased from about four
million to over nine million dollars, in
addition to the large trust and -invest
ment business which has been built up
entirely during this period by its af
filiated institution, the First Trust Com
pany. During this time the combined
capital and surplus of the affiliated in
stitutions has been practically doubled,
the amount in 1911 being $836,000 and
at the last statement call was $1,650,000,
and the assets are now about twelve mil
lion. To handle this increased volume
satisfactorily the bank finds it necessary
not only to enlarge the public lobby, but
also the working space.
The plan contemplates extending the
present lobby south thirty feet, a rear
rangement of tellers’ cages, and enlarg
ing the Savings department. To pro
vide for additional working space the
present mezzanine floor will be brought
forward approximately thirty feet on
either side of the lobby and two-thirds
o f that distance in the center. The o f

NORTHWESTERN

BANKER

ficers quarters will also be slightly en
larged, including a more commodious
room for president’s office and directors’
meetings.
Sell Interests at Mitchell
H. S. Clarke, Jr., and H. O. Eastman
have sold their interests in the First
National Bank at Mitchell and the First
National Bank at Morrill, Nebraska, to a
group of Mitchell men. H. M. Springer,
J. L. Sanford, M. B. Quivey, W. W.
Newell, C. S. Campbell and F. L. Pelton
are the men who have purchased the
bank at Mitchell and the same group
with W. R. Preston, J. R. Jirdon and
H. C. Karpf have purchased the Morrill
institution. All will be included on the
directorates of the two institutions.
There will be no change in the active
management of either bank. F. L. Pelton, who has been cashier of the First
National at Mitchell for several years,
remains in that capacity and H. C. Karpf
will retain a like position at Mitchell.
Both Mr. Clarke and Mr. Eastman are
Omaha bankers.
Nebraska Bank Deposits
An increase of bank deposits of over
$31,000,000 in the last two years is
shown by the report of the Nebraska
banking department, summarizing the re
ports of the 924 state banks. The de
posits now total $270,000,000 which is

January, 1925

the largest since the peak days of pros
perity in 1920.
The greater part of the increase has
come within the last three months, when
over $15,000,000 of wheat and old corn
money was put into them by the farm
ers and merchants, who got their money
from the farmers on old accounts. The
last report was on July 21st and the
summary just issued was of October 7th.
Cash on hand in these banks has in
creased over $12,000,000 in the last two
years and over $10,000,000 since last
July.
This indicates that loans have been
paid off much more rapidly the last
quarter than they have been contracted.
The total cash reserve of the banks is
over $61,000,000, the highest since 1919
and nearly double the amount the law
requires to be on hand.
Loans and discounts have increased
but a million since July, while deposits
have been climbing at a rate of fifteen
times as great. The banks are also get
ting into better shape, as shown by the
fact that they have cut their borrowings
from other banks over $7,000,000 in the
last two years and less than at any time
since just before inflation set in. From
a total of 1,008 banks at the peak period
and 963 two years ago the number has
been reduced to 924 by consolidation or
liquidation.

Full Speed
Ahead!
Steady progress in 1924 laid foundations for substam
tial business advancement in 1925.

In preparing for

1925 business, correspondent banks w ill find ample
facilities for every financial service at The Omaha
Rational Ban\ and The Omaha Trust Company.

rp O T J
1

1 1

JU U

yf A T T A

i V l/V O /V

NATIONAL BANK
TRUST COMPANY

W ALTER W HEAD , President

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

THE

January, 1925

NORTHWESTERN

BANKER

y Quick action
on bonds
1 1 ,0 0 0 m iles o f p r i
vate wires help handle
“ rush” queries.

62 years of
healthy, consistent
growth
Through wars, panics and in '
dustrial crises that shook the
country’s financial fabric, this
bank has grown steadily, for
62 years.

The Chase National Bank
of the City of New York
57 Broadway
C A P I T A L , ................................................................................... $ 2 0 ,0 0 0 ,0 0 0
S U R P L U S A N D P R O F I T S ...............................................
2 5 ,1 4 1 ,3 8 2
D E P O S I T S ( O c t o b e r 10, 1 9 2 4 ) ....................................... 5 06 ,S 1 5 ,1 79
O F F IC E R S
A L B E R T H. W I G G I N
P r e s id e n t
V ic e P r e sid e n ts
S A M U E L H. M IL L E R
H E N R Y O L L E S H E IM E R
C A R L J. S C H M T D L A P P
A L F R E D C. A N D R E W S
R EE V E SCHLEY
R O B E R T I. B A R R
S H E R R I L L S M IT H
A s s is t a n t V ic e P re sid e n ts
E D W IN A. L E E
M. H A D D E N H O W E L L
W I L L I A M E. P U R D Y
A L F R E D W . H U DSON
G E O R G E H. SA Y L O R
GEORGE HADDEN
J A M E S L. M IL L E R
C o m p tr 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 L L Y
D IR E C T O R S
EUGENE V. R. TH A Y E R
H E N R Y W . CANNON
C A R L J. S C H M I D L A P P
A L B E R T H. W IG G IN
G E R H A R D M. D A H L
J O H N J. M I T C H E L L
ANDREW FLETCHER
G U Y E .T R I P P
R E E V E SCH LEY
J A M E S N. H I L L
H. W E N D E L L E N D IC O T T
D A N I E L C. J A C K L I N G
W I L L I A M M. W O O D
C H A R L E S M. S C H W A B
J E R E M IA H M IL B A N K
S A M U E L H. M IL L E R
H E N R Y O L L E S H E IM E R
E D W A R D R. T IN K E R
A R T H U R G. H O F F M A N
E D W A R D T. N IC H O L S
F. E DSON W H IT E
NEW COM B CARLTON
A L F R E D P . S L O A N , J r.
F R E D E R IC K H. E C K E R
E L IS H A W A L K E R
W E INVITE 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 D E P A R T M E N T

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Federal Reserve Bank of St. Louis

National and local calamities
left it unshaken on its solid
foundations of wide and pro'
gressive principles.
Today, more than $ 6 5 ,000,000
of combined deposits testify to
the public confidence in this
old Chicago bank.
Bp

"A big, friendly institution where the spirit is
democratic and it is a pleasure to do business”

The Foreman National Bank
The Foreman Trust and Savings Bank
La Salle and W a sh in g to n Sts.
C hicago

Combined Capital, Surplus and Undivided Profits
exceed $10,000,000

THE

Guaranty Fund Report
More than $2,800,000 will be in the
state guaranty fund to start the year
1925, as an assurance to the depositors
in all banks operating under Nebraska
charters that their money is safe, no
matter what may happen. In view of
the easier financial conditions now pre
vailing over the country, it is not ex
pected that this fund will have to be
drawn upon many times during the year
to come.
In the last twelve months, Nebraska
has emerged from a four-year period of
business and agricultural adversity
with a guaranty fund of $8,000,000 more
or less, in total. It looks now as though
the end of this long and rocky road for
the banking institutions of the state is
in sight
The immense losses which the guar
anty fund has sustained were made good
by a series of special assessments levied

NORTHWESTERN

BANKER

upon the state banks each year, in ad
dition to the regular semi-annual assess
ments. Solvent banks were thus com
pelled to carry a heavy load besides over
coming the unfavorable circumstances in
general which surrounded their business.
But they have weathered the storm and
are now sailing in smoother waters.
During 1924 bank deposits have been
climbing at a fairly steady rate. As
compared with total deposits of $240,000,000 at the close of business for 1923,
there was $269,000,000 on October 7, last,
and it is believed the final statement for
the current year will bring the amount
up to $275,000,000. Should this antici
pation be fulfilled, it will register a gain
of $35,000,000 or 14 2-3 per cent, over a
year ago.
Due in part to the swelling of de
posits, the guaranty fund has again
fallen considerably below the legal re
quirement of 1 per cent. The state

Capital and Surplus
$7,000,000

We offer our facilities to out-oftown banks and bankers desiring a
complete Chicago correspondent
service in domestic and foreign
banking. An opportunity to ex
plain the benefits of both our serv
ice and a strong banking connec
tion is desired.

January, 1925

banking bureau is now making the year
ly readjustment of guaranty reserve ac
counts with all state banks and assess
ing each one a sufficient amount to bring
its total to 1 per cent of its average de
posits for the past six months.
State Trade and Commerce Secretary
Knudson estimates that this process will
add half a million dollars or so to the
guaranty fund in December. The fund
will also be reimbursed to the extent of
more than $200,000 within the next few
days, coming from receivers of the failed
banks whose depositors were paid with
money drawn from the fund.
On January 1, the regular semi-annual
assessment, one twentieth of 1 per cent,
based on average deposits for six months
ending November 30, will be made on
state banks. Figuring the deposits at
only $250,000,000 for that period, this
assessment will augment the fund by
$125,000 more.
There is over $2,000,000 now on hand
in the guaranty fund. The appended
summary shows about how much there
will be January 1st:
Now in fund..............................$2,006,000
Refunds to be made...............
203,000
Readjustments.........................
500,000
Regular assessment ................
125,000
Total .....................................$2,834,000
The readjustments in the foregoing
tabulation are, to all intents and pur
poses, a special assessment on the banks,
which will average one-fifth of 1 per
cent. It is occasioned by the fact that
the guaranty reserve of most banks has
been depleted below 1 per cent of de
posits by previous drafts to pay depos
itors in failed institutions.
Nebraska’s bank guaranty system has
proven the most successful one in the
United States. Oklahoma, where the
plan originated twenty years ago, de
faulted its pajunents to depositors after
a series of disastrous failures. This is
the only state in the union where every
bona fide deposit in failed state banks
has been paid during the past twelve
years.

Midland
National

CentralTrust
COMPANY OF ILLINOIS
CHICAGO

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

B a n k

Minneapolis

January, 1925

THE

NORTHWESTERN

BANKER

. MINNESOTA A
* BANK NEWS w
O F F IC E R S

R. W . L IN D B K E
P r e s id e n t

M IN N E S O T A B A N K E R S

A S S O C IA T IO N

P r e s i d e n t . . R . W . L i n d e k e , V i c e P r e s i d e n t M e r c h a n t s N a t l. B a n k , S t. P a u l
V i c e P r e s i d e n t . . .J . J. M a l o n e y , C a s h i e r F a r m e r s S t a t e B a n k , H e r o n L a k e
T r e a s u r e r ........................................................................................J. K . M a r t o n , L i t t l e F a l l s
S e c r e t a r y .................................................................................G. H . R i c h a r d s , M i n n e a p o l i s

Will Increase Capital
About January 1st the capital stock of
the Farmers and Merchants State Bank
of Austin, Minn., will be increased from
$50,000 to $75,000 as the result of action
taken recently at a meeting of the stock
holders in the banking room of the bank.
The board of directors have for some
time felt the need of an increase in the
bank’s capital on account of the increase
of business which the institution has en
joyed during the last two years, and in
order to keep pace Avith the growth of
Austin.

Buys Bank at Becker
The State Bank of Becker, Minnesota,
has been sold to A. J. Praxel of Lamberton, Redwood county, who took over con
trol. Mr. Praxel will be president of
the bank, and F. W. Hines of Minne
apolis, its vice president. W. E. Cruzen
will remain in his present capacity of
cashier, for a time, and T. M. Thompson
will remain permanently with the new
management, according to present plans.
H. O. Spindler will also remain for a
time. The State Bank of Becker was or
ganized as a private bank in 1902.

New Assistant Cashier
J. S. Harris, of Dassel, has been added
to the force of the First National Bank,
Grand Rapids, Minnesota.

New Trust Company
A new organization known as the St.
Cloud Guaranty Trust Company, has been
organized at St. Cloud, Minnesota, with
the following officers : President, H. W.
Riley; vice presidents, C. F. Ladner and
D. J. Fouquette; secretary-treasurer, J.
A. Henry.

Banks at Randall Merge
F. B. Coon, president of the Randall
State Bank, Randall, Minnesota, will
continue in that capacity following the
merge of the Farmers State Bank and
the Randall State Bank just completed.
Frank Kiewel was elected vice president
to succeed J. J. Meyer and H. F. Sjostrom succeeds F. A. Timm as cashier.
Bank Reopened at Wilmar
The Farmers Security State Bank of
Wilmar, Minnesota, capitalized at $50,000, closed a year ago, was reopened re
cently by order of A. J. Yeigel, state
superintendent of banks. A. E. Nelson
is president and A. H. Dahlberg, cashier.
Duluth Bank Clearings
An increase of $36,102,532.17 over the
month of November, 1923, is shown by
the report of the clearings of the six
Duluth national banks for that month,
according to figures announced recently.
Total clearings for November, 1924,
amounted to $79,419,689.13, as compared
with $43,317,156.96 in November, 1923.
Clearings for October, 1924, were $89,582,460.35, the present month falling off
$10,162,771.22 from this amount.

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Federal Reserve Bank of St. Louis

Willmar Bank Reopens
The Farmers Security State Bank, of
Willmar, Minnesota, has been reopened
for business with capital stock of
$50,000. A. E. Nelson, of Minneapolis,
is president and Andrew H. Dahlberg,
cashier.
Montevideo Bank Reopens
The Farmers & Merchants State Bank
reopened for business recently, after
having been closed for a period of ten
months.
The bank reopened with a capital of
$50,000 and a surplus of $10,000.
J. E. Heisler, former cashier of the
Farmers Security State Bank of Center
ville, S. D., has been elected president.
The other officers in the reopened insti
tution include J. M. Thornton, vice pres
ident; C. C. Elkjer, cashier, and Ella J.
Peterson, assistant cashier.

G. H. RICHARDS
S ecreta ry

ington National Bank, Worthington, ef
fective December 10. He is succeeded
as cashier at Brewster by his brother,
A. J. Kane, who has been an assistant
cashier there for two years. Mr. Kane
will retain his interests in the Brewster
bank and his postion on the board.
Minnesota Banks Reopen
Two more Minnesota banks have re
opened their doors, Superintendent A. J.
Yeigel recently announced. They are the
Farmers and Merchants State Bank of
New Ulm and the Searles State Bank of
Searles. The New Ulm institution was
closed last July. It reopens with cap
ital of $50,000, surplus $10,000 and de
posits of $351,000. The Searles State re
opens with $10,000 capital.
Rejoins Minnesota Transfer State
John L. Haas has resumed the post of
vice president and active manager of the
Minnesota Transfer State Bank of St.
Paul. He has for several years been with
the state banking department as an ex
aminer.
Opens in New Quarters
The Daytons Bluff State Bank of St.
Paul has moved into its new quarters at
East Seventh and Reaney streets. This
institution was organized in 1910 and has
capital of $75,000 at the present time.
Holds Annual “ Cheerofete”
The Minneapolis Chapter of the Amer
ican Institute of Banking recently held
its eighth annual “ cheerofete” in the
ballroom of the Nicollet hotel. A vaude
ville program with song and dance artists
featured the program. Herman Lind
quist of the Farmers and Mechanics Sav
ings was chairman of the program com
mittee.

Sets New Deposit Record
Deposits of the Metropolitan National
Goes to Worthington
Bank of Minneapolis have reached the
E.
W. Kane, cashier of the First Na$8,000,000 mark, a recent statement o f
tional Bank at Brewster, Minnesota, has conditions shows. This bank is cap
been elected vice president of the Worth italized at half a million dollars.

THE
Opens Savings Department

The American National Bank of St.
Paul has opened a savings department
under its charter as a national bank. In
cluded in this department is the business
formerly conducted by the American
National Bank directors as the North
ern Savings Bank. Officers of this insti-

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

BANKER

tution are as follows : Otto Bremer,
chairman ; L. H. Ickler, president ;
Charles H. F. Smith, vice president; H.
B. Humason, cashier; P. A. F. Smith, S.
B. Frederick, C. A. Malley, J. P. Loney,
Lawrence Doran, A. M. Du Bord, as
sistant cashiers; Otto Bremer, William
L. Goodkind, Charles H. F. Smith, L. H.
Ickler, J. R. Beggs, Charles E. McCoy,
Adolph Bremer, H. B. Humason, Ira B.
Baer, H. H. Weed, directors.
Minnesota Per Capita Debt

Unknown and Missing
Heirs— Searched for
L a w y e r s , b a n k e r s a n d t r u s t o ffi c e r s
h a v e n o t t h e t im e , o r t h e f a c i l i t i e s
fo r s e a r ch e s f o r a b s e n t h e ir s ; o w n
ers o f d orm a n t b a n k a ccou n ts, te r
m in a te d t r u s t b a la n c e s , e tc.
Our
in t e r n a t io n a l o r g a n iz a t io n s p e c ia l
i z e s in s e r v i c e o f t h i s c h a r a c t e r .
W e a d v a n c e a ll e x p e n se s , e n g a g e
le g a l s e r v ic e s w h e n r e q u ir e d an d c o
o p e r a te u p o n e t h ic a l lin e s w it h t r u s
te e s a n d le g a l re p r e s e n ta tiv e s .
B o o k le t re o u r w o r ld -w id e a c t iv i
t ie s s e n t t o l a w y e r s , b a n k e r s a n d
t r u s t o ffic e r s o n re q u e s t.
W . C. C O X & C O M P A N Y
F e d e r a l R e s e r v e B a n k B ld g ., C h ic a g o

During the fiscal year ended June 30,
1923, state government in Minnesota cost
$43,012,306 or $17.32 for each man, wom
an and child in the state, according to a
report of the Department o f Commerce,
recently made public. To meet the ac
count the state went a little more than
a million dollars into additional debt be
cause the revenues for the same period
were $41,848,339, or $16.85 per capita,
the outgo being 47 cents per capita more
than the income. The expenditures in
clude total payments for expenses for op
erating the general department of the
state government, interest on debt and
outlays for permanent improvements.
The income was from property and spe
cial taxes, representing 25.4 per cent of
the total, earnings of general depart
ments, compensation for services ren
dered by state officials, constituting 17.9
per cent of the total, and business and

January, 1925

non-business licenses representing 40.8
per cent of the state’s income.
Receipts from business licenses consist
chiefly of taxes exacted from insurance
and other incorporated companies, while
those from non-business licenses com
prise taxes on motor vehicles and
amounts paid for hunting and fishing
privileges.
The net indebtedness (funded and
floating debts less sinking fund assets)
of Minnesota for 1923 amounted to
$17,854,300, or $7.19 per capita. The
per capita net debt for 1922 was $7.95,
and for 1917, $0.61.
For 1923 the assessed valuation of
property in Minnesota subject to ad va
lorem taxation was $2,353,527,264; the
amount of taxes levied was $8,371,016and the per capita levy, $3.37.
Clearwater County Bankers Meet

The regular annual meeting of the
Clearwater County Bankers Association
was held recently at the Rest room of the
First National Bank in Bagley, Minn.
The following officers were elected for
the ensuing year :
President, E. Randahl, cashier of the
First State Bank of Clearbrook; vice
president, A. F. LaBudde, cashier of the
Farmers State Bank, of Gonvick; secre
tary, Wm. Wiench, cashier of Clearwater
County State Bank, of Bagley; treasurer,

THE
HE Seaboard has built a
reputation among sound con
cerns as a progressive commercial
bank. If your house is in order
and you wish a financial friend
who will stand by you to the very
limit— come to the Seaboard.

HANOVER
NATIONAL
BANK

OF TH E C IT Y OF NEW Y O R K
E stablished 1851

The SeaboardN ational Bank
of the

C ity

N ew Y ork

M A IN O FFICE
Broad and Beaver Streets
M E R C A N T IL E B R A N C H
115 Broadway at Cedar Street
UPTOW N BRANCH
20 East 45th Street near Madison Ave.

Capital

$5,000,000

Surplus and Profits 22,000,000

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

THE

January, 1925

J. R. DeWitt, cashier of First State Bank
of Shevlin.
After the business meeting a banquet
was tendered the members of the associa
tion by the Bagley bankers at the Clear
water hotel.
The bankers of Clearwater county are
putting forth every effort to improve
the condition of the farmers of the coun
ty and encouraging the improving of
dairy herds and poultry. An effort is be
ing put forth by the Agricultural Com
mittee of the Association to secure a
short dairy course the coming spring and
to have the dairymen of the county or
ganize for the purpose of having their
cattle tested for tuberculosis.

NORTHWESTERN

BANKER

Out of T ow n Accounts
Many bankers contemplate new banking connections the early part of the
new year. This bank’s facilities are unsurpassed and its location is strategic
for northwestern business. May we have the pleasure of hearing from you?

THE FIRST NATIONAL BANK, Duluth, Minn.
C a p i t a l $ 2 ,0 0 0 ,0 0 0 .0 0

S u r p l u s a n d P r o f i t s $ 2 ,2 0 0 ,0 0 0 .0 0

Advertise in the Northwestern Banker

My Home
To make this house my very own
Could not be done by law alone;
Though covenant and deed convey
Absolute fee, as lawyers say,
There are domestic rites beside
By which this house is sanctified.
By kindled fire upon the hearth,
By planted pansies in the garth,
By food and by the quiet rest
Of those brown eyes that I love best
And by friendship’s gift divine
I dedicate this house of mine.
When all but I are soft abed
I trail about my quiet stead
A wreath of blue tobacco smoke
(A charm that evil never broke),
And bring my ritual to an end
By giving shelter to a friend.
These done, 0 dwelling, you become
Not just a house, but truly Home!

“ T H O U G H I K N E W I W E R E T O DIE
T O M O R R O W , I W O U L D PLAN T A
TREE T O D A Y ”

— Christopher M orley.

TEPHEN GIRARD was prob
ably the most foresighted busi
ness man of his time. He built
not so much for his own genera
tion, as for those he knew were to fol
low. He believed in making the future.
And when a business associate ques
tioned some policy that could not be
fully developed for some years to come,
he answered, “ Though I knew I were
to die tomorrow, I would plant a tree
today.”
The Girard National believes in and
practices the precepts of the man who
founded its fame. And it is still build
ing its services to meet, not only pres
ent needs, but also future possible re
quirements.

T he G irard N ational B ank
PHILADELPHIA

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

BANKER

January, 1925-

Thrift— the Antidote for Radicalism
ATIONAL Thrift Week has al
ready produced a lot of business
for the banks of this country and
it will produce more. For this purely
selfish reason, if for no other, the banks
of the country should lend their whole
hearted support to the promotion of this
movement.
But the banker’s interest in National
Thrift Week is deeper and more vital
than the mere opportunities of today.
This is true because the movement aims
at problems of much more far-reaching
nature than just increased business and
new bank accounts. It is a movement
which reaches out into the future; the
future economic stability of this coun
try.
National Thrift Week is, primarily, an

B y
V ice

H ow a rd M ora n

P resid en t, A m erica n S ecu rity
T ru st Co., W ashin gton , D . C.

effort to teach the American people not
only thrift but right financial thinking
in its every phase. It will bring more
business to the bank, but more important
than that, it will bring better business;
business of a long standing quality.
When the public is taught to live within
its income, credit risks will be lessened
and all business will be on a better basis.
Radicalism and other dangerous forms
of social and political thought cannot
thrive in a thrifty community. Property
owners never advocate the overthrow
of property. So does National Thrift

A PROBLEM
SOLUTION
AND ITS

To secure new customers who will remain active,
regular depositors is the problem of the savings
bank, and experience has shown that the best
solution is the use of the

Recording Home Safe
Thousands of banks throughout the country can
testify that its use leads to more successful savings
business— business that brings prosperity to the
depositor and growth to the bank. It builds for
the present and for the future.
Let us explain what the banks say about it.

The Automatic Recording Safe Co.
159 N. State Street

Chicago

Week help combat one of the most fun
damental dangers which today threaten
our business structure. And this is only
one of the ways by which it helps stabil
ize conditions in this country. Another
which might be mentioned is the good
influence which it has toward the end of
saving for legitimate industry vast sums
which are now being mulched from the
public by “ wild-cat” promoters and
“ blue sky artists.”
National Thrift
Week does this by teaching people toinvestigate before they invest— to con
sult their bankers, first.
In Washington, we believe in National
Thrift Week. We believe in it so much
that we are willing to work hard for its
success. Our campaign last year was
decidedly popular and productive. This
is proven by the interest of the public
throughout the entire week. A knowl
edge of how we worked may be of in
terest to others contemplating like activ
ities.
Our local campaign was handled by a
committee made up of sixty-six repre
sentatives from local organizations and1
headed by an executive committee elected
by them. All our work was simplified
and made most effective by the helpful
cooperation and advice of the National
Thrift Committee and the promptness
with which they supplied material to
further our plans. The entire cost of our
campaign was about $2,000. This was
subscribed locally.
The publicity committee was directed
by an associate editor of our largest
newspaper.
This committee prepared
news articles on thrift which totalled
more than four pages of newspaper
space. A slogan contest was also con
ducted and about 57,000 pieces of
printed matter were distributed. Be
side this direct work, many banks and
business houses included a thrift talk as
a part of their advertising is newspa
pers, street-ears and through the mail.
In Washington, National Thrift Week
will continue to have support for many
j^ears to come. We entered thrift activ
ities several years ago, merely resolved1
to be open-minded. But now we havepassed the stage of experimentation.
We know that National Thrift Week is
good for us. And further: we know
that everyone else who tries it will agree with our decision.

Mailing Lists
Will help you increase sales

Send for FREE catalog giving counts
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ers—National, State andLocal—Individ
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,
refund of J
each

St.Louis

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Federal Reserve Bank of St. Louis

THE

January, 1925

NORTHWESTERN

BANKER

NORTH DAKOTA
BANK NEWS
O F F IC E R S

NORTH

DAKOTA

BANKERS

A S S O C IA T IO N

President, Blanding Fisher, Pres. R am sey County N atl. Bank, D evils Lake
B L A N D IN G F IS H E R
President

V ice-P resid en t and Chairman E xecutive C ouncil...........................................
........................... Ed Pierce, President Ransom County T rust Co., Sheldon

W . C. M A C F A D D E N

T reasu rer.......................J. E. Davis, President Citizens State Bank, Goodrich

Secretary

Secretary...................................................................................W . C. Macfadden, F argo

Promoting Pig Club W ork at
Langdon
OME very good work in the promo
tion of boys’ and girls’ club work
is being done by the First National
Bank of Langdon, North Dakota. B.
E. Groom, secretary of the Cavalier
County Fair Association at Langdon de
scribes the work as follows :
‘ ‘ The First National Bank of Langdon
advanced the money needed to start two
pig clubs. One club of ten boys has
purchased, through our county agent,
ten very fine Yorkshire gilts from a
Canadian breeder and the boys now
have the pigs.
1‘ The second group of eight boys to

G ood

D u r o c -J e r s e y S o w s a r e

B e tte r th a n S o w T h is tle s
Inouradvertisingspacelast weekw
ecalledattentiontothedanger
confrontingus throughthespreadof SowThistles. Sincethat timewe
h^yeteeninformedthatagoodmanyfarmersrealizedthedangerandhad
beencuttingall thistle'sontheirfarmsandontheroadways. Whilethat
doesnoteliminatethedanger, resultingfromthose who will not cut
thistles, ithelpssome ThisweekwecanreportagoodstartwithaDurocJerseyPigClub.
Throughtheeffortsof ourCountyAgent W.L. Johns andtheoffer
of theFirstNational Banktosupplythemoneyneeded,sixoreightboys
of Osnabrocktownshipwill get registeredDuroc-Jerseysows this week.
Thepigs werepurchasedandselectedbyMr. Johns. At thistimethese
pigsweresecuredatveryreasonablepricesandtheboysarestartingwith
goodstocktogrowintosdhiethingthatshouldmakethemsomemoney.
Manym
orepigsliketheseareneededinCavaliercountyandtheFirst
National Bankwill begladtohelpboysandgirlswiththem
oneyneeded
tomakeastart

THE FIRST N ATIONAL BANK
LANGDON
NORTHDAKOTA

The First National at Langdon believes
two advertisements that tie up the bank to

North Dakota News
R. C. Dahl is now assistant cashier in
the Norma State Bank.
E. R. Hebei has been elected cashier
of the Bank of Cogswell and succeeds
L. P. McAneney.

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Federal Reserve Bank of St. Louis

which we expect to add two more, when
suitable stock can be found, have se
cured eight Duroc Jersey gilts. All pigs
are registered stock and good ones.
‘ ‘ Our Fair association has a junior live
stock department and for each of these
clubs will offer prizes at the fair next
year for sow and litter of $10—$8— $5
—$3, a total of $52 for the two clubs.
The boys can also show in sweepstakes
classes and display of hogs for which
prizes aggregating $40 are open. We
are looking forward to a real show by
the boys in 1925.”

G e ttin g S ta r te d R ig h t W it h
A

F ew Sheep

Applications havebeenfiledbyCavalier county farmers with the
Agricultural Credit Corporation for at least livecar loads of breeding
ewes. Itisexpectedthat m
orewill besecured. Thisisthetimethatthe
sheeparemovedfromtheranges andthosewantingsheepmust act at
Thesecretariesof anyof thedistrict loanorganizations will furnish
blanksandinformationregardingthesheepandCountyAgentJohnsalso
hastT
hh
eebla
kss. areas follows,—TheAgricultural Credit Corporationwill
ten
rm
advancethemoneyforthepurchaseof sheeponapprovedloansat 6per
centinterest. Of theamount borrowed30percent must bepaidat the
endof thefirstyear; 30percentattheendofthesecondyearand40pei
centat theendof thethirdyear. Blackfacedgradeewes, notoverthree
yearsold, will costapproximately$10.50eachF.O.B. pointsinCavalier
county. Registeredramswillbesuppliedat$25F.O.B.pointofpurchase
inMontana.
TheFirst National Bankbelievesthat thisgives farmers agoodop
portunitytogetstartedwithafewsheepinawaythatwill payoutwell.
Thepricesarealittlehigherthansheephavesoldforduringalongterm
periodand, it ismorethanlikelythat sheeppriceswill declinealittlein
afewyears. Onthataccount, itisnotadvisabletobuytoolargeanum
ber. As ageneral rule25sheeptothequartersectionisplentyand a
bandof 50headforastart onanyfarmisagoodstart. Asm
ail flock
wellcaredforwill provefarm
oreprofitableandsatisfactory, thanalarge
Hockwithoutplentyoftherightkindof feed,pastureandshelter.
Startrightby“growingintothebusiness" insteadof"goingintoit'

Halverson, formerly assistant cashier,
has been elected cashier.
Earl J. Fennell has been employed as
clerk in the First State Bank at Yelva.
H. C. Fulton is now cashier of the
Pingree State Bank.
L. F. Davidson has been appointed
bookkeeper in the Dodge State Bank.
The Farmers Bank of Munich which
was placed under a special deposit ar
rangement on September 18, 1923, re
opened for general banking on December
4th.
The Security State Bank of Hamburg,
which closed on April 25, 1924, reopened
for business on December 15th.
The Farmers State Bank at Kathryn
reopened recently. This bank closed on
December 10, 1923.
Bank of Cogswell
At the annual meeting of the Bank of
Cogswell, North Dakota, E. R. Hebal
was elected cashier and L. P. McAneney
was elected vice president. W. S. Lau
der of Wahpeton and Alex and William
Stern of Fargo were reelected to the
board of directors.

Munich Bank Reopens
Reopening of the Farmers Bank of
Munich, North Dakota, which went on a
special trust deposit list September 18,
1923, was announced recently by Gilbert
in advertising. Above are reproductions o f
its farmer customers.
Semingson, state examiner. The bank
has a capital of $20,000 and deposits of
approximately $230,000. P. J. Anthony
C.
S. Benson succeeds M. W. Bolstad is president of the bank.
as cashier of the First State Bank at
Hamar.
North Dakota ‘ ‘ Coming Back”
Recently, deposits in the three banks
J. Heger, formerly cashier of the For of Grand Forks have increased over
est River State Bank, has been made $500,000, according to statements by
president of the institution and A. E. officers of the banks, which are enjoying
THE FIRST N ATIONAL BANK
LANGDON
NORTHDAKOTA

THE

NORTHWESTERN

BANKER

Prosperity
i n

Prosperity is in the air.
By careful planningand
hard work, the next
twelve-month shoul d
bring solid growth and
substantial success to
the farmer and those
who serve his interests.
The Dovers Banks offer
to you and your patrons
e v e r y me t r o po l i t a n
b a n k i n g f a c i l i t y —a
prompt service support
ed by the s e a s o n e d
judgment of 43 years'
successful business and
made pe r s o n a l by
friendly consideration.
Let us help you in
1925 through Drovers
Service.

r o v e r s

N A T IO N A L B A N K = 0 t ó è
TIUI5TÓ5AVEVGS BANK

Union Stock Yards, Chicago

January, 1925

the greatest period of prosperity in their
histories. Bank officials claim that the
peak has not yet been reached, as some
of the farmers have not marketed their
crop.
In speaking of present conditions W.
E. Fuller, vice president of the Northern
State Bank, said: “ It is marvelous how
the farmers of this state can come back
with only one crop after a series of lean
years. But the farmers are not spending
their money freely. They are paying
cash for much of what they buy and
paying off much of what they owe.”
Gets Cashiership
A. 0. Elatland has been elected cashier
of the First State Bank of Brisbane,
North Dakota, to succeed C. D. Hayden,
resigned.
Is Elected a Director
At the regular monthly meeting o f the
board of directors of the Union Trust
Company, Chicago, Mr. Stuyvesant Pea
body, president of the Peabody Coal
Company, was elected a director to suc
ceed the late Mr. Frank C. Caldwell.
Minnesota Auto Licenses
Minnesota now has 494,259 registered
motor vehicles, more than any other
northwest state except Iowa, according
to figures made public from the office of
Mike Holm, secretary of state.
There are 15,552,077 in the United
States, based on department of agricul
ture figures for July 1st. The number
in Minnesota is 40,000 more than at the
same date in 1923 ; the amount paid
for license tags is $8,435,662, compared
with $7,318,752 in 1923.
Other registration figures are— Mon
tana, 69,100; North Dakota, 104,845;
South Dakota, 126,813; Iowa, 569,415;
Wisconsin, 473,913.
Pat’s Canceled Checks
Pat had opened his first bank account
and had taken to paying most of his
debts by check. One day the bank sent
him a statement, together with a packet
of canceled checks. Of the statement
Pat made neither head nor tail, but the
returned checks greatly excited him.
“ Mike!” he said to his friend one day,
“ sure an’ it’s a smart bank I ’m doin’ busi
ness wid now.”
“ Hows that1?” asked Mike.
“ Why,” replied Pat, “ Oi paid all me
bills wid checks and bejabbers if the
bank wasn’t slick enough to get ivery
check back for me again.”— Everybody’s.
In so complex a thing as human na
ture, we must consider it is hard to
find rules without exception.— George
Eliot.
A man used to vicissitudes is not
easily dejected.— Johnson.

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Federal Reserve Bank of St. Louis

January, 1925

THE

I O W A

NORTHWESTERN

BANKER

B A N K

N E W S

COUNCIL OF ADMINISTRATION
Iowa Bankers Association
A D M IN IS T R A T IV E

C O M M IT T E E

P resident......C. J. Wohlenberg-, President H olstein Savings Bank, Holstein
Vice President....M . C. Sweney, Pres. M itchell County Savings Bank, Osage
Treasurer......................N. C. Hoffm an, Cashier M urray State Bank, M urray
Secretary.................... .........................................................Prank W arn er, Des Moines
GROUP

C H A IR M E N

C. C. Jacobson, Chm. Group 1............ President F irst State Bank, Mapleton
John Sieh, Chm. Group 2........ Cashier, Farm ers T rust and Savings, Spencer
M. C. Sweney, Chm. Group 3........ President, M itchell County Savings, Osage
F. B. Claxton, Chm. Group 4........ Cashier, State Bank of Fayette, F ayette
Fred Durbin, Chm. Group 5........ Cashier, M alvern National Bank, M alvern
S. L. R utt, Chm. Group 6....President, A bram R u tt National Bank, Casey
W . R. F inlayson, Chm. Group 7-P resident F irst N at’l Bank, Grundy Center
P. J. Thede, Chm. Group 8................. President, Dixon Savings Bank, Dixon
D. V. Ferris, Chm. Group 9.............Cashier, F irst National Bank, D iagonal
R oy T. A lford , Chm. Group 10.............Cashier, F irst National Bank, A lb ia
T. R. Richardson, Chm. Group 11 Cash., Commercial State Bank, Mediapolis
C. E. Narey, E x-officio............ President, F irst N ational Bank, Spirit Lake

Brooks Banker Married
Ivan M. Heaton, cashier of the Bank
of Brooks, Iowa, was recently married to
Miss Wilma E. Hassman of that city.
They will make their home in Brooks.
Backs Calf Club Work
The Merchants National Bank of Bur
lington, Iowa, has offered to provide
financial backing to any needy member
of the Des Moines County Boys and Girls
Club for the purchase of a calf to be en
tered in the contest next August at the
Burlington Tri-State Fair. The bank
offers to provide the money at straight
interest, not necessary of payment until
after the contest.
New Bank at Arthur
A new bank to be known as the Arthur
Trust and Savings Bank of Arthur, Iowa,
with capital stock of $25,000, is being or
ganized and expects to open around the
first of the new year. Robert Lipton, Sr.,
of the Anderson Lipton Bank at Ida
Grove, is the heaviest stockholder in the
new bank. Other members of the Lipton
family, C. J. Wohlenberg and son Carl
of Holstein, Iowa, and Ross Latchaw are
among the incorporators.
Davenport Banker Married
Glenn L. Peebler of the First National
Bank, Davenport, Iowa, was married re
cently at Marengo, Iowa, to Miss Esther
Marie McCain. They will make their
home in Davenport. The bride received
her high school education in Oklahoma,
later attended the Iowa State Teachers
College at Cedar Falls and has been
teaching in the public schools of Fairfield for the past four years. Mr. Peeb
ler was formerly assistant cashier of the
First National Bank at Fairfield.
Annual Meeting
The annual meeting of the stockhold
ers of the First Trust and Savings Bank
of Preston, Iowa, was held recently, at

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Federal Reserve Bank of St. Louis

which time the annual election was held
and the board of directors and officers
were reelected as follow s:
Directors—Hugh Jenkins, John Grant,
Albert Osborne, J M. Ryan, A. F.
Schmidt, Charles Stoltz and W. F.
Schroeder.
President, W. F. Schroeder; vice pres
ident, Hugh Jenkins; cashier, J. W.
Campbell.
Buy Interests at Stockholm
George W. Berg and Arnold Berg
have purchased the interest of 0. P.
Johnson and Sons in the Stockholm
State Bank, of Stockholm, South Da
kota and already have assumed control.
George W. Berg will be cashier and Ar
nold Berg assistant cashier. O. B. Fornell and others of the old stockholders
will retain their interest in the bank.
Iowa Bank Deposits
Iowa bank deposits for November
were 6.4 per cent larger than for No
vember, 1923, and .8 per cent in excess
of the October total, according to the re
port of Seventh Federal Reserve dis
trict. Each state in the district showed
a gain over October, the total gain being
.9 per cent.
All states of the district, with the
exception of Iowa, reported gains in
savings deposits. Iowa showed a de
crease of 3.3 per cent, as compared to
October.
Citizens Savings, Ayrshire
The Citizens Savings Bank of Ayr
shire, Iowa, has been reorganized with
J. T. Maguire as president to succeed
P. O ’Grady, who organized the institu
tion twenty years ago. H. R. O ’Grady
remains as cashier and J. E. O ’Grady,
assistant cashier.
“ You can’t push yourself forward by
patting yourself on the back.”

Burlington Xmas Savings
Banks of Burlington, Iowa, issued
checks for approximately $170,000 from
the Christmas Savings clubs, according
to announcement by the various bankers.
The Christmas Savings club has grown
from a very small beginning to a really
great financial movement and it is get
ting larger every year.
Bankers state that while the Christ
mas Savings clubs have grown steadily,
there are additional saving plans wherein
small amounts are paid each week which
have also had a steady growth and an
nounce that the total savings in this
manner reach a huge figure.
Sac County Bankers Meet
The annual meeting of the Sac County,
Iowa, Bankers’ Association was held at
Hotel Park in Sac City recently.
Members of Sac County Vigilantes
met with them, and a highly profitable
and enjoyable time was had by all.
About seventy were in attendance.
At 7 o ’clock a splendid dinner was
served by the hotel management, after
which the business meeting was held
and officers were elected for the ensuing
year.
C. J. Wohlenberg of Holstein, presi
dent of the Iowa State Bankers Associa
tion, gave the principal address at the
gathering.
The newly elected officers are:
President— Geo. B. Perkins, Sac City.
Vice President— G. B. Wilhoite, Sac
City.
Secretary— C. E. Harding, Sac City.
Aug. J. N. Schmitz, Odebolt, was re
elected treasurer of the association
After the business meeting a good
social time was greatly enjoyed.
Addresses Parents and Teachers
A. M. Henderson, of Story City, an
ex-president of the Iowa Bankers Asso
ciation, was the principal speaker at

THE

NORTHWESTERN

BANKER

In extending our sincere wishes for an en
joyable and prosperous New Year to each
and every Iowa Banker, we want to im
press Bankers with the wonderful oppor
tunities that 1925 is sure to have for us.
Business is good now and favorable indi
cations point to the fact that they will be
much better. Make your preparations
accordingly.
This bank, its officers and directors with a
record for having served its correspond
ents faithfully and intelligently since its
organization in 1876— has one thought
foremost for the new year— better coop
eration with its fellow bankers through
out Iowa.
J. K . D em ing, P resid en t
Geo. W . M yers, V ic e P resid en t
Jas. M . B nrch, V ic e P resid en t
H erm an E schen, S ecretary
Jos. W . M eyer, Cashier

Consolidated National
Bank

a recent Parent-Teachers’ association
meeting in Nevada, Iowa.
Making things too easy for the chil
dren and an inclination on the part of
the parents to do ‘ ‘ too much spoon
feeding” and over prosperity was char
acterized by Mr. Henderson as the cause
o f the present-day problem confronting
the American parent.
Mr. Henderson referred to the many
serious problems confronting the Amer
ican citizen as teacher and parent and
stressed the responsibility of the parent
to the youth of the country. In speak
ing of over prosperity as a cause of the
present-day problem Mr. Henderson was
of the opinion that 90 per cent of the
people can stand adversity and only
about 10 per cent prosperity.
The
speaker laid stress on learning to live
within one’s means, urging that common
sense and moderation must control in
these days. Mr. Henderson, in his talk
to the parents, set out that the schools
have the pupil six hours daily or 30
hours each week, which makes about a
thousand hours a year. This leaves eight
thousand hours that the pupils are cared
for by the parents and in emphasizing
the importance of home training, the
speaker queried: 1‘ Do we expect the
schools to do more in a thousand hours
than we do in eight thousand hours?”
He pleaded that we must not let the
youth drift, saying: “ The trouble is not
the use but abuse of modern conditions
of living.”
Mr. Henderson, in the course of his
remarks, urged the development of a
true community spirit.

DUBUQUE, IOWA

Recovers from Operation
C. Flemmig, cashier of the State
Bank at Renwick, Iowa, underwent an
operation for appendicitis recently at
the Algona hospital, but is almost re
covered when this issue goes to press.

CO U RTESY

Improvements at Nevada
Several improvements have been made
on the interior of the Peoples Savings
Bank of Nevada, Iowa. The principal
feature of remodeling consists of en
larged space to take care of a rapidly
growing business.

U N IT E D

S T A T E S D E P O S IT O R Y

Genuine courtesy means much more to us than mere
politeness, which often goes no farther than the conven
tionalities demanded by etiquette.

An Honest Desire to Please —
is our definition of courtesy
It is our aim to serve you pleasingly
as well as promptly.

SECURITY ST A T E B A N K
KEOKUK, IOWA

“ The Bank That Makes Friends and Keeps Them”

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Federal Reserve Bank of St. Louis

January, 1925

Addresses Ames Men
Ivan 0. Hasbrouck, vice president of
the Central State Bank of Des Moines,
at one time cashier of the Ames National
Bank, Ames, was a speaker at a recent
meeting of Congregational Brotherhood
Sunday School Class in Ames.
First National Raises Capital
Stockholders of the First National
Bank of Davenport voted recently at a
special meeting to increase the capital
stock by $200,000, doubling the previous
figure.
Much interest was shown by the share-

January, 1925

THE

holders in the bank in the proposed in
crease, which was made by a unanimous
vote. Practically every stockholder was
represented in person or by proxy.
The increase will consist of 2,000
shares with a par value of $100 each.
Of the $200,000 increase, 25 per cent or
$50,000 will be voted as a dividend to
stockholders, and the remaining $150,000
will be offered to present shareholders as
required by law in proportion to their
present holdings. The book value of the
stock is $250 a share, President A. P.
Dawson states.
Stock not subscribed by present stock
holders will be allotted to local people
not at present owning shares in the bank.
The addition to the capital of the bank
will bring the invested capital up to
$925,000.
Is New Director
To fill the position left vacant by the
death of the late C. M. Nichols a year
ago, Amos C. Whitacre, a director, has
been elected president of the Iowa State
Bank of West Liberty, Iowa. Other o f
ficers are: Vice president, Ivan Noland;
cashier, C. A. Nichols, and assistant
cashier, Irwin Mosher.
Alton Banker Married
Although married several weeks ago,
the marriage of Harry Yander Linden,
cashier of the Alton Savings Bank of
Alton, Iowa, to Mrs. Ethel Herron of
Pender, Neb., was not found out until
recently. They will make their home in
Alton.
Hold Open House
The formal reception of visitors at
the Niles & Watters Savings Bank, Anamosa, Iowa, attracted hundreds of vis
itors to inspect the interior finish re
cently. The final work of decoration has
been completed. The new banking offices
and lobby constitute one of the finest and
most modern banking house in eastern
Iowa.
On the occasion of its fifty-first an
niversary, this pioneer institution is not
only one of the strongest in the county,
but has every equipment and facility for
convenient work and also for the com
fort and accommodation of its custom
ers. The facilities include a well
equipped rest room for ladies, a private
office room for customers to meet busi
ness men and farmers or out of town
men on business deals, besides ample
rooms for the official and clerical forces,
a well designed directors’ room and
private office of the president.
One of the officials, Mr. T. W. Shapley, vice president, has been an officer
of the bank since its organization in
1873 as the First National Bank. Cashier
T. E. Watters has been actively engaged

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

IÖW A
NATIONAL BANK,
1

DAVENPORT **
t

iT 3

«Lkj

At the beginning of this new year, the officers and
directors of the Iowa National Bank extend their
best wishes and sincere greetings to the hanks and
bankers of Iowa, and assure them that during 1925
they will find an ever increasing desire among the
officers and directors of this institution to be of real
service to them.
Iowa, as an agricultural state, is constantly show
ing a progress even when conditions are not as favor
able as they might be. For example, in 1921 Iowa
produced 444,190,000 bushels of corn with a gross
value of $133,257,000. In 1924 Iowa produced a
total of 304,752,000 bushels of corn which represents
a smaller yield than 1921, but which had a greater
gross value because it amounted to $383,419,000.
For 36 years the Iowa National Bank has been an
important factor in the development of Iowa agricul
ture. Today we look forward into the new year sin
cerely believing that it will be a year of prosperity.
Iowa bankers have confidence in Iowa— in its re
sources and its possibilities. And this bank is ready
to serve Iowa banks and bankers more efficiently and
satisfactorily than ever before.
Let us handle your Davenport account during
1925.

C H A S. S H U L E R , P resid en t
F R A N K B. Y E T T E R , V ic e P res.
W M . H . G E H R M A N N , V ic e P res.
L O U IS G. B E IN , Cashier
H E R M A N S T A A K , A sst. Cashier

DAVENPORT, IOWA

THE

NORTHWESTERN

BANKER

“ Over 62 Years of Service to Iowa Bankers

A . F . D A W SO N
P resid en t

C. F. S C H M ID T
A sst. Cashier

I R V I N J. GR E EN
Cashier

P . A . T O R N Q U IST
A sst. Cashier

From Father to Son
Many of our present depositors are sons or grandsons of
■ the earliest customers of this bank, which was established
in 1863.
Our service has meant security and profit to three genera
tions of a host of Davenport families as well as hundreds
of Iowa banks and bankers whose established banking
connections with us have passed from father to son as a
natural expression of confidence and high regard, won by
62 years of faithful, watchful and cordial financial
cooperation.
Through steadfast service to each succeeding generation
of Davenport’s business and industrial builders, the First
National Bank in the United States has become a domi
nant financial leader and now exercises a great pride in
its long years of work with the bankers of Iowa.
Here under one roof, in our new and beautiful banking
home, with a capable management, you will find every de
partment of modern finance eager to serve you with the
same whole-heartedness and courtesy that has character
ized the service of this institution for over 62 years.
We want you to come in and visit us in our new home.
Nine Departments at Your Service

First National Bank
DAVENPORT

FIRST

IOWA

- NATIONAL -»
4
v v BANK ^
IN THE UNITED STATES

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Federal Reserve Bank of St. Louis

January, 1925

in the business management for a period
of thirty-five years.
President George B. Frazier came to
the bank eleven years ago as purchaser
of the stock of the majority stockhold
ers and was soon elected president,
which position he has held for the past
decade. The flourishing condition of
this pioneer institution is shown in the
last official statement, exhibiting capital,
surplus and undivided profits of more
than $110,000 and resources amounting
to $1,186,449.57.
Elect at Marshalltown
The annual meetings of the stockhold
ers of the Marshalltown State Bank and
of the Marshalltown State Bank Build
ing Company, Marshalltown, Iowa, were
held at the bank parlors, the present
directors and officers being re-elected.
The old bank board chosen was C.
C. Trine, W. G. Strickler, C. E. Arney,
H. W. Jennings, J. B. Classen, W. A.
Davis and Dr. R. F. French. Officers
chosen were C. C. Trine, president; W.
G. Strickler and C. E. Arney, vice presi
dents; H. W. Jennings, cashier.
The bank directors are also directors
of the building company. The latter’s
officers are C. C. Trine, president; J. B.
Classen, vice president; C. E. Arney,
treasurer; H. W. Jennings, secretary.
Story County Bankers Meet
Story county, Iowa, bankers to the
number of forty gathered at the library
parlors in Nevada recently, for the an
nual election of officers and discussion
of other matters considered of vital in
terest to the association.
Fred W. Larson of Cambridge was
elected president of the Story County
Bankers Association for the coming
year; Thor Hegland of McCallsburg,
vice president ; Clay W. Stafford of
Ames, treasurer, and I. J. Melass, cash
ier of the Huxley Savings Bank, as sec
retary.
Among other matters of importance
to the banking business discussed was the
necessity of the furnishing of security
bonds for county cash deposited in banks
by the county treasurer. The bankers
hold that in many cases the deposit is
not sufficient to justify the payment of a
premium on a bond for the maximum
amount demanded by the county.
Practically every bank in the county
was represented.
Heads Clearing House
John L. Mitchell, president of the
First National Bank of Sioux City, Iowa,
has been elected president of the Sioux
City Clearing House Association to fill
the position left vacant by the resigna
tion of John J. Large. James F. Toy
is vice president and Carlton M. Magoun,
secretary of the association.

January, 1925

THE

NORTHWESTERN

Gets Leave of Absence
At the annual meeting of the board
of directors of the Delaware County
State Bank of Manchester, Iowa, a two
months’ leave of absence was granted
to C. J. Seeds, president, in order that
he may enjoy a well merited vacation in
Honolulu. Mr. Seeds has been actively
associated with the bank for a number
of years, taking no vacations. He has
a son, Capt. Ned Seeds, in Honolulu. At
the same meeting all officers were re
elected as follows : President, C. J.
Seeds; vice presidents, R. W. Tirrill and
H. P. Arnold; cashier, J. P. Sloan; as
sistant cashier, Wayne C. Currell.

£ ç - f * 0 *

Titonka Savings Elects
At the annual meeting of the stock
holders and directors of the Titonka Sav
ings Bank, Titonka, Iowa, the following
officers and directors were elected:
B. S. Pannkuk, president; Wm. Boyken, vice president; Lee 0. Wolfe, cash
ier; H. C. Schweppe, assistant cashier.
Directors: B. S. Pannkuk, Wm. Boyken, Lee 0. Wolfe, H. C. Schweppe,
Henry Meyer, E. Amesbury and E. J.
Van Ness.
B. S. Pannkuk was elected to fill the
vacancy caused by the death of P. R.
Amesbury, former president, which oc
curred this summer. H. C. Schweppe
entered the employ of the Titonka Sav
ings Bank about a year ago. Mr. Pann
kuk was one of the organizers of the
bank in 1916.
The capital is $15,000.00, surplus and
profits, $10,000.00 and deposits a little
over $300,000. The active officers are:
Wm. Boyken, vice president; Lee 0.
Wolfe, cashier; H. C. Schweppe, assist
ant cashier.
Waterloo Xmas Savings
More than $150,000 in checks, ranging
from $27 to $250, was mailed out to
Waterloo members of Christmas clubs
by five Waterloo banks.
This amount surpasses that of last
year, when $130,000 was distributed,
though five banks have clubs this year,
whereas last year there were but four.
The checks were mailed by the Water
loo Savings Bank, Black Hawk National
Bank, First National Bank, Leavitt and
Johnson’s National, and the Waterloo
Bank and Trust Company.
Sheldon Banker Dead
John H. Archer of Sheldon, Iowa, died
recently of heart disease. Mr. Archer
was 63 years old, an organizer of the
Primghar Savings Bank, vice president
of the Sheldon First National Bank,
president of the Bank of Archer, director
of the Sheldon Savings Bank, and the
Empire Loan and Trust Company. He
was a thirty-second degree Mason and
a member of the Sioux City consistory.

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Federal Reserve Bank of St. Louis

BANKER

FORWARD
As 1924 passes into history and 1925 becomes
a reality, it is the sincere and earnest desire of
the officers and directors of the Cedar Rapids
National Bank to move forward in increasing the
cooperation and service which they render their
correspondent banks.
The only way that any bank can move forward
is by taking an invoice of the past, and by so do
ing eliminate its weak points and strengthen its
strong points.

Thus it may climb a step higher

and give to its correspondent banks the benefit
which comes from an accumulation of knowledge
from the years that have passed.
Our motto for 1925 is “ Forward"’— forward
towards a new goal of service and satisfaction to
our country bank customers.
Let us handle your Iowa account.

“

ThisBank IV,as Not Built in a D a y

The

Cedar Rapids National
Bank
O F F IC E R S
R alp h V a n V ech ten
Chairman o f the B oard
Glenn M. A verill
P resid en t
Geo. F. M iller
V ice -P re sid e n t

M artin N ew com er
V ice -P re sid e n t
Chas. C. K u ning
Cashier
P eter B ailey
A ssistant Cashier
M arvin R . Selden
A ssistan t Cashier

Geo. W . Swab
A ssista n t Cashier
V an V ech ten Shaffer
A ssistant Cashier
B ertha M. W o lf
A ssistan t Cashier

THE

The Smoke Problem
Parley Sheldon, Ames, Iowa, banker,
81 years of age, quit smoking sixty years
ago when serving in the Union army.
His command was penned in by the con
federates for twenty-three days and he
could get no tobacco. When finally re
lieved he had found that he could get
along without tobacco and figuring what
he had saved during the twenty-three
days, he decided to quit its use. He
says the amount he has saved with inter
est at 6 per cent amounts to $54,577.
Suffers Unusual Accident
Wade Spurgin, vice president of the
Guthrie County National Bank, Guthrie
Center, Iowa, was the victim recently of
an unusual accident in which sheer luck
alone prevented the outcome from being
fatal. In company with several other
coon hunters Mr. Spurgin had spent the
evening following the dogs south of
Panora. When returning home about
midnight in the John Burchfield car, a
.22 rifle which he was holding between
his knees was fired off accidentally, with
the result that the bullet entered the
victim’s left breast and ranged upward
coming out near the shoulder.
Mr.
Spurgin was rushed to town and placed
in a doctor’s care. It was discovered
that his injury, fortunately, consisted of
a flesh wound only, and that no bones
had been struck by the bullet. Several

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

coon dogs were being carried in the back
part of the car and it is presumed that
one of them brushed against the rifle,
releasing the safety catch and then strik
ing the trigger.
Marshall County Meeting
Officers of the Marshall County, Iowa,
Bankers’ Association were re-elected at
the annual meeting of the organization
held at the Y. M. C. A., MarshalltoAvn.
A1 Sanderttian, cashier of the Melbourne
Savings Bank, was retained as president.
Others re-elected were J. A. Small, vice
president of the Farmers’ State Bank,
Gilman, vice president; Park Grier,
cashier of the Vancleve Savings Bank,
treasurer, and H. W. Jennings, cashier
of the Marshalltown State Bank, secre
tary.
The business meeting was held follow
ing dinner served at 6 :30, and was at
tended by representatives of practically
every bank in the county. Reports of
officers for the year were presented and
a report was made of the vigilance com
mittee and its work.
The committee is now made up of
sixty-four men, all armed and equipped.
In recent months three practice shoots
have been held at the Melbourne range.
The hate which we all bear with the
most Christian patience is the hate of
those who envy us.— Colton.

January, 1925

Pioneer Banker Dead
L. Zeller, the president of the First
Trust & Savings Bank of Oxford Junc
tion, Iowa, passed away on the 12th
instant. The deceased was nearly eightyfive years old and a pioneer resident of
the community. He has been in the
banking business there for over thirtyfive years.
Is Elected Treasurer
R. W. Stephenson, of Forest City,
Iowa, has been elected treasurer of the
Stanley-Henderson Company of Cedar
Rapids, Iowa. Formerly Mr. Stephenson
was cashier of the Forest City National
Bank and of late years has acted as land
inspector for the Merchants Loan &
Trust Company of Chicago, in northern
Iowa and southern Minnesota.
Increases Capital
A. E. Carroll has been named a di
rector of the Citizens Trust and Savings
Bank of Davenport, Iowa. At the same
meeting of the directorate, the capital
stock of the bank was increased from
$100,000 to $150,000. Mr. Carroll is an
attorney, with the firm of Carroll Broth
ers in that city.
Happiness is that single and glorious
thing which is the very light and sun
of the whole animated universe; and
where she is not it were better than
nothing should be.— Colton.

January, 1925

THE

NORTHWESTERN

BANKER

OMBINED deposits
of more than twenty'
six million dollars show
public confidence in this
institution.
See us when you come to
Des Moines.

OFFICERS
P r e s id e n t

H o m e r A . M i ll e r
C ly d e E . B r e n t o n
H . T . B la c k b u r n

V ic e P res.
V ic e P re s.
V ic e P re s.
V ic e P res.
C a sh ie r

G eo . E . P e a r s a ll
A lb e r t J. R o b e r tso n
J. R . C apps
W a l t e r H . M i ll e r
R . L . C h ase, Jr.
Jam es F . H art
J. B u rson
S h erm an W . F o w le r

A sst.
A sst.
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C ash .
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DIRECTORS
G eo. N . A y re s
II. T . B la c k b u r n
C ly d e E . B r e n t o n
H o w a r d J . C la r k
G a r d n e r C o w le s •
J. H . C o w n le
E . C. F in k b in e
J. B . G reen
W m . C. H arb ach
G. M. A

F . H . I .u t h e
M . M a n d e lb a u m
E . T . M e r e d it h
H o m e r A . M i ll e r
G eo . E . P e a r s a ll
R a lp h H . P lu m b
M . S h lo s s
E . R . S to tts
O. P . T h om pson
a E vera

Iow Nationai .Bank
4

Des Moines Savings Bank

and Trust Company
Iowa's Largest Bank - Des M o in e s - Sixth and Walnut

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Federal Reserve Bank of St. Louis

THE

N O R T H AY E S T E R N

BANKER

January, 1925

News Items from the I. B. A.
Friends will be sorry to learn of the
untimely death of Carlton M. Stone,
former cashier of the Waukon State
Bank at Waukon, Iowa. Mr. Stone was
just in the prime of youth.

At your service
in Eastern Iowa

PEOPLES
TRUST &

and

SAVINGS

Western Illinois

B A N K

ifu

Among some of the bankers visiting
Des Moines recently were: John Burianek, president of the People Savings
Bank, Cedar Rapids; Carl Lane, cashier
First National Bank, Indianola; Walker
Hanna, president of the Hanna-Shreves
Bond Co., Burlington; W. L. Luke, cash
ier Bradford Savings Bank, Bradford;
Geo. R. Perkins, president First Na
tional Bank, Sac City; N. C. Hoffman,
cashier Murray State Bank, Murray;
C. E. Narey, president First National
Bank, Spirit Lake; M. W. Fitz, president
Farmers Savings Bank, Manson; H. I.
Foskett, vice president Shenandoah Na
tional Bank, Shenandoah; S. M. Leach,
president Adel State Bank, Adel; J. F.
Becker, cashier Elkader State Bank,
Elkader.

PeoplesTrusi&SavinjjsBaiili
eopj
C L IN TO N , IOW A..'

Remember it this -w a y -“PEOPLES TRUST
^ T p H E Des M oines business
of Iowa banks is invited.
These banks are thoroughly
equipped in every department

Valley National Bank
AND

Valley Savings Bank
DES MOINES, IOWA

V a lley B ank B u ild in g

Established 1872

Combined Capital and Surplus

$ 1, 100 , 000.00

R. A. CRAWFORD
President

C. T. COLE, Jr.
Vice-President

JOHN H. GINSBERG
Asst. Cashier

D. S. CHAMBERLAIN
Vice-President

W. E. BARRETT
Cashier

C. M. CORNWELL
Asst. Cashier

In the Center of Things
The Live Stock National offers every service to
bankers in this territory.
The Sioux City Stock Yards are fast approach
ing the head of the list. An account with the
only bank located at the stock yards will enable
you to receive prompt service.
Correspondence invited.

The mid-winter meeting of the Coun
cil of Administration of the Iowa asso
ciation was held on December 17, 1924.
The Legislative Committee met at the
same time.
Pat Carroll, who was captured follow
ing the robbery of the Little Sioux Sav
ings Bank, plead guilty to using explo- .
sives this week at Logan, Iowa, and was
sentenced to 15 years. Another warrant
has been issued charging him with rob
bing the bank at Lone Rock, and action
has already been started to have the in
dictment against him and detainer war
rant filed with the warden of the peni
tentiary. It is always the intention of
the officers of the Iowa Bankers Associa
tion to relentlessly pursue guilty bank
robbers. Carroll is said to be a man
around 47-48 years of age. The sentence
just imposed on him will make him a
man of 60 or more before he is released,
and then he will be tried on another
bank robbery charge where it is hoped
that the regular 40-year sentence can be
imposed, if he is found guilty. Owing to
the fact that two witnesses could not

PA C K E R S SECURITIES
SPECIALISTS
Information—Quotations
«

T h e L iv e S to c k N a tio n a l B a n k
Located at The Stock Yards
SIOUX CITY, IOWA

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Federal Reserve Bank of St. Louis

2 0 9 S O UTH LA S A L L E ST.

CHICÀGQ

January, 1925

THE

NORTHWESTERN

come from Wyoming at the last minute,
owing to illness, who should have been
able to have clearly established his iden
tity, Carroll was not tried under the
statute carrying the major sentence, and
seemingly plead guilty under the statute
carrying the lesser sentence to James B.
Parsons, one of the attorneys for the
Iowa association, who aided in the prose
cution.

SO U N D BONDS
FOR

The viligantes of Osceola county re
cently held a county competitive shoot.
The viligantes of Winnebago county also
held a county competitive shoot and
were afterwards served a fine dinner by
the bankers of Winnebago county to
which the wives of the vigilantes were
likewise invited.
The viligantes of
Franklin county also held a county compettive shoot. Don Davis, state agent,
cooperating with the Iowa Bankers As
sociation, attended these shoots as an
instructor. Captain, Davis is an old
regular army man and a good marks
man. The Clarke County Bankers As
sociation held a meeting which was at
tended by Mr. Davis and Frank Warner,
secretary, both of whom spoke. The
Union County Bankers Association held
one of its regular meetings at Creston
the other eveinng. Frank Warner, sec
retary, attended.

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Federal Reserve Bank of St. Louis

IN V ESTM EN T

Hanford Mac Nider, President
MASON CITY
Security Building
Cedar Rapids

Valley National Bank Building
Des Moines

5?\
LOSE co-operation is
essentia] in the suc
cessful handling of corre
spondent accounts.

A M E R IC A N
COMMERCIAL S
SAVINGS BANK
s /*

The American Commer
cial and Savings Bank spe
cializes in friendly co
operation w i t h
patron
bankers. May we analyze
your individual require
ments and show you the
advantages of a connection
with us?

0. F. Fryer, president of the Iowa
State Savings Bank, Fairfield, Iowa, re
cently returned from Kansas, where he
was called owing to the death of his
brother.

A. C. Smith, chairman of the Edu
cational Committee of the Iowa Bankers
Association, has sent out to all of the
Iowa banks a letter, as follow s:
To the Iowa Banker Addressed:
Dear S ir: New and improved mate
rial has been prepared for the present
year’s Educational work. You will
wish to secure for your bank this splen
did indirect advertising, as well as for
your citizens, the direct benefit to be de
rived from an understanding of the fun
damentals that govern our financial and
economic welfare.
It has been found advisable to segre
gate the talks on the basis of the kind
of audience before whom they are to be
given. Accordingly, three sets of talks
have been prepared, as follow s:
(1) For Grammar Schools: A series
consisting of three talks written simply

B A N K

The First National Company of Iowa

A. F. Dawson, president of the First
National Bank, Davenport, Iowa, has
just recently returned from a trip to
Washington, D. C.

A. M. Henderson, cashier of the First
National Bank, Story City, Iowa, re
cently returned from a trip to Min
neapolis.

BANKER

D A V E N P O R T , IO W A

The City National Bank
of Clinton, Iowa

Capital, Surplus and Profits $
Deposits

750,000.00
5,800,000.00

O F F IC E R S

A L F R E D G. SM ITH , Chairman
A L F R E D C. SM ITH , President
H A L L E C K W . S E A M A N , V ice President
G EO RG E L. C U R TIS, V ice President
O LIV E R P. P E T T Y , Cashier
JO H N H. N IS SE N , A ssistant Cashier
H E N R Y G. K R A M E R , A sst. Cash.
Accounts of Banks, Corporations and Individuals received on most favorable
terms. Correspondence Invited.

THE

NORTHWESTERN

BANKER

January, 1925

and clearly, but covering adequately all
the points that we reasonably can ex
pect 7th and 8th grade pupils to under
stand.
(2) For High Schools: A series of
five talks consolidating the subjects cov
ered by the nine talks given in previous
years.
(3) For Civic Clubs, Etc.: A series
of two talks to be used in Civic Clubs
and other local and fraternal associa
tions, upon the relationship of the bank
to business.
The reduction of the number o f talks
in each series is a decided advantage
and they can readily be given in a
shorter time during the winter months
when there is less doing.
Most bankers are interested and ap
preciate not only the value of this work
as an advertising feature for their banks,
but also the value to the children and
through them to all the people of the
state. We trust you, too, are interested.
Will you accept the responsibility of
seeing that one, or more, of these series
of talks are given in your community ?
I f so, please sign and return the en
closed stamped, addressed postal and the
material requested will be sent to you
immediately.
Very truly yours,
A. C. S mith ,
Chairman Educational Committee,
Iowa Bankers Association.

The N ew Hom e o f “ T H E STO C K Y A R D S B A N K S ”
now nearing com pletion

HARACTERIZED by helpful o f
ficial attention to the financial
needs of their correspondents,
and by thoughtful handling o f small as
well as large daily transactions for
banks throughout the great Middle
W est; these institutions cordially invite
the fullest use o f their facilities.
RESOURCES TH IR TY MILLIONS

THE STOCKYARDS NATIONALBANK
THE STOCK YARDS TRUST &SAVINGS B A N K
o f C H IC A G O

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Federal Reserve Bank of St. Louis

Accompanying the letter is a postal
card, self-addressed to Mr. Smith, under
which every bank can ask for as many
pamphlets of the series as the bank
may want. Up to date Chairman Smith
has had requests from 500 bankers, show
ing a wonderful response which he is
getting in this educational work. Mr.
Smith has served as Chairman of the
Educational Committee of this associa
tion for three years. A quantity of each
kind of the pamphlets has been sent to
each of the 11 Group Educational Chair
men, sufficient for them to place one or
more sets in the hands of each county
educational chairman. Mr. Smith’s state
committee is shown below:
COMMITTEE ON PUBLIC EDUCATION
A. C. Smith, chairman, Clinton, Presi
dent City National; G. 0. Van Derveer,
Waverly, cashier State Bank of W averly;
E. S. Van Gorder, Audubon, president
First National; L. 0. Stone, Mason City,
vice president City Commercial Savings;
B. B. Vorse, Des Moines, vice president
Bankers Trust Company; C. C. Jacob
sen, Mapelton, president First State;
H. E. Smith, Clarion, cashier Clarion
Savings Bank; W. W. Young, Hedrick,
cashier First National; M. E. Tate, Keo
kuk, vice president and cashier Security
State; Frank Camp, West Union, cashier
Fayette County National; Carl Monroe,
Leon, cashier Exchange National.

January, 1925

T II E

NORTHWESTERN

Meeting at Oakland
The Pottawattamie County Bankers’
Association met recently in Oakland,
Iowa. A good representation was pres
ent, including representatives of the five
Council Bluffs banks. The latter invited
the association members and their wives
to hold the next meeting in Council
Bluffs as their guests. The speakers of
the evening were E. P. Harrison and E.
B. Wilson and A. G. Kistle of Council
Bluffs.

MERCHANTS
NATIONAL BANK

Honor Retiring Director
The stockholders of the Danville State
Savings Bank, Danville, Iowa, at their
annual meeting passed a resolution of
thanks to R. P. Cady of Burlington, a
retiring director, for his splendid co
operation and help as officer for the past
twenty years. Ed Cady of Burlington
will succeed his father as director.

C E D A R

I O W A

9 9

ERE is a letter from a banker
who helped build up one bank
and then five years ago started
a bank of his own, and when he did
so he placed his account with the
Merchants National Bank because its
service to the first bank was “ satisfac
tory in every way.”

Goes to Sioux City
Thomas W. Shearer has resigned his
position as bookkeeper of the Chatsworth Savings Bank of Chatsworth,
Iowa, and has accepted a position with
the Sioux City National Bank of Sioux
City, Iowa. Chris. F. Neilsen, until re
cently connected with the U. S. National
of Omaha, Neb., has been appointed to
the position as bookkeeper in the Chats
worth Savings Bank.

Here is the letter which tells its own
story:
“ W e opened an account with the
Merchants National Bank when we
organized this bank five years ago, be
cause the bank that the writer was
connected with prior to that time had
maintained an account with them for
many years, which had been satisfac
tory in every way.

There’s a Reason
Martin L. Wehn, president of the Citi
zens State Bank of Griswold, Iowa, is
wearing a broad smile these days and
responds to the title of “ Daddy.” A
new baby boy is the cause.

“ They have always granted us
every accommodation that we have
asked for and now provide us with a
safe place for the surplus of funds
which we now have on hand.”

Marcus State Now Open
The Marcus State Bank, successor to
the Bank of Marcus, Iowa, has received
its charter and is now open for business
with capital stock of $50,000, surplus
$12,500. The newly organized bank is
under the management of the Gund fam
ily, whose father, Louis Gund, estab
lished the Bank of Marcus June, 1881.
Officials of the new bank are: Presi
dent, W. L. Gund; vice presidents, Min
nie G. Gund and Cora I. Gund; cashier,
Lee M. Woods, and assistant cashier,
Byron B. Vaughan.

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Federal Reserve Bank of St. Louis

R A P I D S ,

“ Satisfaction in
Every Way

Is Legion Head
At a meeting of the local post of the
American Legion J. H. Engel, cashier
of the First National Bank of Rolfe,
Iowa, was elected Post Commander for
the coming year.

I f a young lady has that discretion
and modesty without which all knowl
edge is little worth, she will never make
an ostentatious parade of it, because
she will be rather intent on acquiring
more, than on displaying what she has.
— More.

BANKER

This correspondent bank has a cap
ital of $5 0,00 0; surplus and profits of
$6,000, and deposits of $330,000.

RESOURCES

$ 1 4 ,0 0 0 ,0 0 0
John T. Hamilton, Chairman
James E. Hamilton, President
Roy C. Folsom, Vice President
P. C. Frick, Vice President
Mark J. Myers, Vice Pres. & Cash.
E. E. Pinney, Vice President
Fred A. Groeltz, Vice President
Edwin H. Furrow, Vice President S. E. Coquillette, Asst. Cashier
H. N. Boyson, Vice President
E. B. Zbanek, Asst. Cashier

THE

Gives Ideas on 4 per cent
Interest Rate
Howard E. Jackson, vice president of
the Farmers State Bank of Paton, Iowa,
writes in as follow s:
“ The question of interest on time de
posits has been before the bankers of
Iowa for some time and many of them,
who raised to five per cent a few years
ago, have been trembling to take the
step to reduce to the normal rate.
“ It may interest you to know that
both banks here, the Farmers State and
the City Trust and Savings Bank, to
gether with the Bank of Dana, and the
Citizens Bank, Grand Junction Bank,
and Peoples Trust and Savings Bank
at Grand Junction, all reduced their in
terest paying rate to 4 per cent Decem
ber 15, 1924.
“ I believe the element of fear has
been responsible in most cases in banks

NORTHWESTERN

BANKER

not going back to the four per cent rate,
but I find that the customers who have
their money deposited at five per cent
are, in practically all cases, in accord
with the banks in reducing to four per
cent.
“ I enclose copy of letter we sent to
our customers, which may be of in
terest.”
The letter follows:
‘ ‘ To Our Customers:
“ Beginning on December 15, 1924, all
Time Certificates of Deposit issued there
after by this bank will bear four per
cent interest, and all savings accounts in
this bank will bear four per cent after
December 31, 1924.
“ All outstanding certificates of de
posit will bear interest at five per cent
until maturity.
“ We have paid five per cent on time
deposits during the last few years be
cause the unusual conditions both de

BANK EQUIPMENT

January, 1925

manded and warranted it. But those
conditions do not now exist, and we are
reducing now to four per cent, which
is the normal and safe rate for this
community.
“ We believe that the majorty of peo
ple consider security as being more im
portant than rate and that our custom
ers will favor and commend our action
in this matter.
“ Yours truly,
“F armers S tate B a n k .”

Sac County Meeting
The annual meeting of the Sac County
Bankers Association was held in the
Park Hotel at Sac City, Iowa.
The members of the Vigilance Com
mittee were the invited guests of the as
sociation as well as Mr. Wohlenberg, of
Holstein, who gave a “ pep” talk to the
vigilantes and bankers on the impor
tance of being ready at all times to make
the work of bank burglary in this county
impossible.
Seventy-five bankers and
vigilantes were present at the meeting.
The Sac county association has an upto-date vigilance committee that is im
proving in the work assigned to them.
They hold shooting practice, and in the
future the associaton contemplates es
tablishing a permanent target, so that
the committee can be taught the proper
inspection of guns and receive instruc
tion from the state agents.
The annual election of officers for the
ensuing year was a part of the program
and resulted as follows : President, Geo.
B. Perkins, Sac City; vice president,
G. B. Willhoite, Sac City; secretary, C.
E. Harding, Sac City; treasurer, A. J. N.
Schmitt, Odebolt.
Story County Bankers Elect
Clay W. Stafford, cashier of the Ames
National Bank, was elected treasurer of
the Story County Bankers Association
at its annual meeting and election held
recently in the parlor of the Nevada
public library, at Nevada, Iowa.
Fred Larson, president of the First
National Bank at Cambridge, was elect
ed president of the association with M.
E. Heggen, also of Cambridge, vice presi
dent, and Ira J. Melaas, cashier of the
Huxley Savings Bank, secretary. .
Those attending from Ames were: A.
J. Martin of the Union National Bank,
Parley Sheldon and F. H. Schleiter of
the Story County Trust and Savings
Bank, C. J. Lynch and Verne Lynch of
the College Savings Bank, and H. W.
Stafford, Clay W. Stafford and George
R. Alley of the Ames National Bank.

A M E R IC A N FIXTURE CO.
KANSAS CITY, MO.

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Federal Reserve Bank of St. Louis

Dispatch is the soul of business; and
nothing contributes more to dispatch
than method. Lay down a method for
everything, and stick to it inviolably,
as far as unexpected incidents may al
low.— Lord Chesterfield.

January, 1925

THE

NORTHWESTERN

BANKER

What can you tell your customers
about Albuquerque,New Mexico

here is the answer

H E R a n d M Ç N a l l y Bankers Directory furnishes a
faithful picture of the banking conditions in any com
munity. From it you can get a complete check on the
activities of all the banks in any town— a reflection of the
prosperity of that district!
Practically every bank and commercial concern needs
frequently to get quick information about distant customers,
about bank connections or legal services. . . . To them the
R a n d M cN a l l y Blue Book offers a value unobtainable
from any other source. For more than fifty-two years
R a n d M Ç N a l l y & C o m p a n y publications for bankers have
answered the queries, W hen? W h o? W h at?— instantly,
accurately and completely. This service to bankers is older
than five-sixths of the banks in America.

R and M c N ally Bankers D i
rectory— Blue Book
The Bankers Monthly
Key to the Numerical System
of the A . B. A .
Bankers Service Guide
Bankers Service Bulletin
Banking and Business Ethics

H a n d IP N a m y & C o m p a n y
Dept. N -29

536 S. Clark Street, Chicago

L a r g e s t P u b l i s h e r s o f B a n k in g P u b lic a t io n s in t h e W o r l d .

E s t a b l i s h e d 1856

Official Numbering Agent, American Bankers Association

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Federal Reserve Bank of St. Louis

THE

NORTHWESTERN

BANKER

Title Insured
Mortgages
“ The stamp of security to owners and
mortgage policies
”

One insists on signed receipts for even
the smallest statement payments. The
same business principle commands that
you protect your land transactions
through Title Insurance.
Even the greatest care and skill may
fail to disclose defects in the title, such
as forgeries, misrepresentation, false im
personation, etc.
The safe and convenient way is to secure
protection through a policy of Title In
surance.
Owners and Mortgagee Policies issued on lands
anywhere in Iowa

Title Insurance Department
of

Southern Surety
COMPANY
2 0 1 Youngerman Bldg.

Des M oines, Iowa

January, 1925

Moves into New Home
The Templeton Savings Bank of Tem
pleton, Iowa, recently moved into the
new bank building and is now centrally
located in the business section. The
building is one of the finest in this sec
tion and was built practically by Tem
pleton men. The finishing and woodwork
is of the finest quality and the arrange
ment is superior in neatness. The build
ing is very spacious and will provide
ample room for all business of the bank.
Goes with Trust Department
Announcement was made recently by
John G. Woodward, president of the
Council Bluffs Savings Bank, Council
Bluffs, Iowa, that owing to the rapidly
increasing volume of business in the
trust department of the bank, Peter
Madsen, formerly associated with the A.
P. Smith Company, had been added to
the force of the trust department and
had been placed in charge of all real
estate holdings of the bank and of its
various clients and trust estates which
the bank is handling as administrator,
executor or trustee.
Mr. Madsen has been associated for
the past four years with A. F. Smith,
realtor, and has had a wide and varied
career in real estate and other lines of
business activity in Council Bluffs and
Pottawattamie county. Until four years
ago he was connected with the John
Beno Company, having filled practically
every possible position in that concern
from janitor to vice president, beginning
at the bottom and working up until, at
the time he left the firm, on December
21, 1920, he was vice president of the
company.
Meets Terrible Death
Eugene S. Baker, president of the
Keokuk National Bank and senior mem
ber of the firm of S. F. Baker & Co.,
Keokuk, Iowa, and his wife were suffo
cated recently in a fire which complete
ly destroyed their beautiful home in
Keokuk. The origin of the fire is un
known, members of the family say. It

FIRST N A T I O N A L B A N K , ^Waterloo, Lowa
DIRECTORS
B. F. SWISHER
Pickett, Swisher & Farwell
R. J. HOXIE
Secretary Waterloo Fruit &
Commission Co.
A. M. PLACE
Vice President
E. E. PEEK
Vice President Waterloo Bldg.
& Loan Association.
H. W. GROUT
Real Estate
C. A. MARSH
President
C lia r te ’ T’ C’c l /â<5S

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Federal Reserve Bank of St. Louis

TP HE First National Bank of Waterloo is
1 equipped to give you the highest degree of
SERVICE, and do it promptly and efficiently
at all times.
Fifty-eight years of steady con
servative growth enables this bank to extend
such service.
OFFICERS
C. A. MARSH, President
A. M. PLACE, Vice President
W ILL A. LANE, Cashier
P. W. ETGHMEY, Assistant Cashier
O. L. MORRIS. Assistant Cashier
Total

Resources Over $2,9 00 ,0 0 0 .0 0.

DIRECTORS
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 S c Co.
W ILL A. LANE
Cashier

January, 1925

THE

is believed that it started in the base
ment or on the first floor and burned
through the walls. The ceiling of the
rooms on the first floor under the room
occupied by Mr. and Mrs. Baker gave
evidence of the terrible heat, as it burned
through.
John A. Dunlap was elected president
of the Keokuk National Bank, succeed
ing the late E. S. Baker, by the board of
directors of the bank at a recent meet
ing. Mr. Dunlap has been the vice presi
dent of the bank for a number of years,
and has been associated with the Na
tional Bank since its reorganization in
1905, when he came to it as cashier, then
was promoted to the vice presidency,
and now is at the head of the institution.
The directors at the same time filled
the vacancy in the office of vice presi
dent by electing Merle F. Baker as the
vice president. Mr. Baker is a son of
the late president, and has been a mem
ber of the board of directors for a num
ber of years.
Vacancies which exist on the board of
directors will not be filled until after the
annual meeting of the stockholders,
which will be held in January.

NORTHWESTERN

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Federal Reserve Bank of St. Louis

CAPITAL AND SURPLUS OVER §1,000,000.00
Established 1874

A Bank
w ith the
Constructive
Policy
of
Cooperation

Spring Meeting of A. B. A.
The annual spring meeting of the
executive council of the American Bank
ers Association for 1925 will be held at
the Bon Air-Vanderbilt Hotel, Augusta,
Georgia, April 20th to 23d, it is an
nounced by F. N. Shepherd, executive
manager of the association.
Special trains from New York and
from the Middle West will be arranged
for the members of the council, which
comprises representatives from each
state. It is expected that about three
hundred will attend the meeting.
Installs New Chimes Clock
A magnificent chimes clock has re
cently been installed by the Scott County
Savings Bank of Davenport, Iowa.
The clock is of massive copper con
struction and is placed on the northeast
corner of the bank building where it
can easily be seen from all directions
at quite a distance.
There are four
dials, each about three feet square which
are illuminated by night.
The clock is beautiful in appearance,
is most useful to all in giving the cor
rect time of day and night and in addi
tion its melodious peal is most pleasing
to hear. A complete set of Westminister
chimes strike each quarter hour, these
chimes being the exact reproduction of
the famous Westminister chimes, with a
soft and musical tone. Various musical
combinations are arranged for each
quarter hour.
The installation of this clock by the
Scott County Savings Bank is a real
asset to the community. In speaking of

BANKER

O F F IC E R S

CHARLES E. PERKINS,
Chairman of Board
E. WEBBLES, President
L. C. W ALLBRIDGE, Vice Pres.
J. G. WALDSCHMIDT, Vice Pres.
W. C. KURRLE, Vice Pres.
O. T. SIMMONS, Vice Pres.
R. L. BUNGE, Cashier
ELMER RAUENBUEHLER,
Assistant Cashier
L. M. WILSON, Ass’t Cashier
L. T. PANTHER, Ass’t Cashier
F. J. NORTON, Ass’t Cashier
RAY HUMPHREY,
Manager Bond Dept.
T. H. WILSON. Auditor

D IR E C T O R S

JOHN BLAUL, President John Blaul’s Sons Co.
LOUIS BLAUL, Retired
W IBLIAM BONGERT, Treasurer Dehner Cigar Co.
W ILLIAM CARSON, President Boise Payette Lumber Co.
H. W. CHITTENDEN, President Chittenden & Eastman Co.
_W.
CHURCHILL, President Churchill Drug Co.
E. P. EASTMAN, Vice President Chittenden & Eastman Co.
W. F. GILMAN, Secretary Burlington Lumber Co.
G. G. HIGBEE, President Murray Iron Works
C. S. LEOPOLD, President Leopold Desk Co.
ROBERT O. LORD, Vice Pres. Harris Trust & Savings
Bank, Chicago
C. H. MOHLAND, Attorney
ROBERT MOIR, Capitalist
C. E. PERKINS, Trustee
E. S. PHELPS, Insurance
II. S. RAND, President Rand Lumber Co.
HENRY RITTER, Retired
J. J. SEERLEY, Attorney
E. WEBBLES, President

FIRSTÄ HwsBANK
MEMBER

FEDERAL RESERVE SY ST E M BURLINGTON IA.

THE

NORTHWESTERN

BANKER

The Vital Matter of Adequate Support
Adequate support is especially vital to agents, when resistance to sales is
unusually strong. Particularly vital is it now. For business revival is here.
And progressive men, with the aid of genuine support, are reaping the full
benefit of changed conditions.
The matter of adequate support here at the Federal Surety is almost a
religion. It occupies a position of prime importance. No problem, large or
small, is ever considered unworthy of careful attention and study. And it
is this attention to detail that is building business for Federal Surety agents.

THE PROGRESSIVE COMPANY
W ritin g Casualty Insurance
E xecutin g F id elity and S u rety B on ds

FEDERAL SURETY COMPANY
W. L. TAYLOR
H o m e O ffic e
D a v e n p o rt, Io w a

V ic e P r e s id e n t a n d G e n e ra l M a n a g e r
D e s M o i n e s B r a n c h O ffice
I n s u r a n c e E x c h a n g e B ld g .

A L a rg e B a n k 's G r e a te s t S erv ice
to the In v e s tin g Public
HERE has perhaps never been a
time in the history of investment
when definite and current informamation concerning one’s holdings
was as essential as right now. Not only
has the business of financing become in
finitely complex, thus upsetting many con
ventional ideas concerning it, but changes
in industrial conditions with far-reaching
effect come about with extreme rapidity.
For this reason we are calling special atten
tion to the services of the Statistical Divi
sion of our Bond Department which coun
sels with individuals, corporations and
other banks on their present and prospec
tive holdings.

BOND DEPARTM ENT

THE N O R T H E R N
TRUST COMPANY
C A P IT A L A N D SURPLUS $ 5,000,000
Northwest Corner La Salle and Monroe Streets

CHICAGO

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

January, 1925

the bank’s gift to the citizens of Daven
port, J. H. Hass, president, said: “ We
hope that the chimes will mean some
thing to all our people, that they will
have a message for the youngster on
his way to school, a thought for the busi
ness man who hustles through the day,
a solace for the old, and inspiration for
all. Every day of the week the chimes
will be sounding their message—the note
of warning spoken in time, the chimes
of rejoicing; the lament in time of sor
row. These chimes will be all these
things to each and every one in our city
for it is going to belong not to us alone,
but to the men and women and children
of our community.”
A. I. B. Meeting in Des Moines
On January 20th and 21st Des Moines
will have the privilege of entertaining
the national officers and executive coun
cil of the American Institute of Banking,
who have selected Des Moines as the
place at which to hold their midwinter
meeting.
This council is the governing body of
the American Institute of Banking and
the American Institute of Banking is a
section of the American Bankers Asso
ciation devoted to the education of
bankers in banking and in those prin
ciples of law and economics that per
tain to the banking business. It does
more than train men, however. It broad
ens their outlook on business in general
and inspires them with a commendable
confidence in their own ability to get
ahead.
The general plan of operation adopted
by the Institute from the beginning has
been to carry on its activities through
the formation of local organizations of
bankers (chapters) in the larger cities
of the country; while for those bankers
living in communities too small to war
rant the establishment of local bankers,
provision has been made to*conduct the
educational courses by mail through the
correspondence chapter.
The studies recommended by the In
stitute are elementary banking, commer
cial law, negotiable instruments, stand
ard economics and standard banking.
In addition to these, classes in credits,
accounting, public speaking and debat
ing are also carried on through the local
chapters.
Des Moines for many years has en
joyed the advantages of Institute work
and the membership enrolled from
among the employes of the Des Moines
banks numbers over 350. At the last re
port there was a total of 54,630 bank em
ployes enrolled in the organization in the
United States in 172 chapters. About
35,000 of these are enrolled in the study
courses.
There has been great activity and in
terest displayed in this work by the

January, 1925

THE

bankers in Iowa during the past few
years and it is hoped that a plan will be
perfected by which the rural communi
ties will be able to receive the same ben
efits as the city chapters.
Officers of the A. I. B. are as follow s:
President— Edwin V. Krick, Mercan
tile Trust Company of California, 1
Grant Avenue, San Francisco, Calif.
Vice-President— Bruce Baird, Hiber
nia Bank & Trust Company, New Or
leans, La.
Secretary— Richard W. Hill, 110 East
42d Street, New York, N. Y.
Educational Director— Stephen I. Mil
ler, 110 East 42d Street, New York, N. Y.
Executive Council— Clarence R. Cha
ney, Northwestern National Bank, Min
neapolis, Minn.; Norman T. Hayes, Phil
adelphia National Bank, Philadelphia,
Pa.; Albert C. Burchett, Bank of Com
merce and Trust Co., Memphis, Tenn.;
Prank N. Hall, Federal Reserve Bank,
St. Louis, Mo.; William Eeiek, Irving
Bank-Columbia Trust Company, New
York, N. Y .; Ralph D. Spaulding, Illinois
Merchants Trust Company, Chicago, 111.;
W. J. Evans, Federal Reserve Bank, Dal
las, Texas; George S. F. Bartlett, Boston
Five Cents Savings Bank, Boston, Mass.;
James F. Hart, Iowa National Bank, Des
Moines, Iowa; Fred F. Van Liew, Old
National Bank, Spokane, Wash.; John T.
Hanefy, Paine, Webber & Company,
Rochester, N. Y .; Ben B. Aley, United
States National Bank, Denver, Colo.
New Company at Davenport
The First National Company of Dav
enport, Iowa, has been granted articles
of incorporation by Secretary of State
W. C. Ramsay, who authorized capital
stock of $1,000,000. The concern, ac
cording to the articles, will transact
business in real estate, securities, invest
ments and organize and promote indus
tries.
A. F. Dawson was named as the presi
dent, Joe R. Lane, vice president, and
Irvin J. Green, secretary and treasurer.
These together with the following
board of directors will conduct the af
fairs of the company: G. W. Cable,
Charles Gilchrist, G. S. Johnson, F. W.
Mueller, M. N. Richardson, Frank D.
Throop, Carl Richter and N. E. Steffen.
Be Thorough
Lose no opportunity for growing in
knowledge of your profession, and do not
overlook the minor details. Sometimes
a man has been floored by a simple ques
tion about a subject he thought was too
unimportant a matter to bother about.
Be thorough all the way.— (Education)
—Prudential Weekly Record.
It is from books that wise men de
rive consolation in the troubles of life.
—Hugo.

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Federal Reserve Bank of St. Louis

NORTHWESTERN

BANKER

YOUR
ULTIMATE
BANKING
CONNECTIONS
T A N D IN G
t h r e s h o ld

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The Old Reliable

Central State Ba n k
O R -

R e s p o n sib le u|^PP4£J® Ife lp fu ln e ss

Member

“

F ed eral^R eserV e System
OFFICERS
SIMON CASADY, Chairman of the Board

GRANT McPHERRIN, President
LELAND WINDSOR, Vice President
IVAN O. HASBROUCK, Vice President
L. G. FULLER, Vice President

FRANK C. ASH, Cashier
J. W. HAWK, Asst. Cash., Mgr. Sav. Dept.
CHAS. W. OXBORROW, Assistant Cashier
FRED H. QUINER, Assistant Cashier

FRANK R. WARDEN, Asst. Cashier, Mgr. Bond Dept.

T H E

A program
that attracts
new depositors
IRST we offer you a pow
erful new link in bank
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Then— if you provide Su
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tive program of selling-helps.
Special advertising matter
whenever you want it, reg
ular newspaper campaigns,
mailing literature, display
material for your bank.
It does attract new deposi
tors— helps you build busi
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Get all the facts now!

s < i

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World's Largest Manufacturers
o f Bank Checks
Chicago
Dallas

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Federal Reserve Bank of St. Louis

San Francisco
Denver

January, 1925

B A N K E R

More Control Urged by Iowa
Lawmakers
“ The bank failures in Iowa which have
come during the period of depression re
cently past will result in numerous pro
posals for banking legislation in the ses
sion of the general assembly this winter,”
says Carl Stuart, in the Des Moines Cap
ital, reviewing proposed measures for the
next legislative session. “ Conditions which
brought about the failures, and problems
that have come up in the ensuing re
ceiverships, have called attention to sev
eral things which might be remedied in
banking administration. Already two of
fices at the capitol— the superintendent of
banking and the attorney general—are
busy upon proposed bills which have been
suggested by Iowa bank failures.
“ The tendency o f the pi’oposals now
being considered by Mr. Leach and Mr.
Gibson is to make the governmental su
pervision and the guiding banking rules
for state and savings institutions much
more like the supervision and rules gov
erning national banks than has been the
case in the past.
“ The attorney general maintains that
nearly every bank failure in Iowa this
year was caused either by frozen assets
due to efforts by financial institutions to
support real estate values and production
within their banking areas, or to too large
items of credit extended to single bor
rowers.
“ Gibson intends to propose a bill de
signed so to strengthen the power of
state bank examiners that they might pro
hibit over-extensions of credit to ventures
of speculative character. His idea is to
give to state bank examiners powers ap
proximating those now exercised by fed
eral bank examiners over national banks.
These powers are quite inclusive, going
even to the point of permitting federal

examiners to remove bank officials, in
emergency cases.
“ ‘The Iowa laws now, I believe, pro
hibit the bad banking practice of lending
too much of a bank’s assets to one bor
rower,’ said Gibson. ‘ But there now is no
workable way in which these provisions
may be enforced.
“ ‘Go back far enough into the inven
tory of any bank which has failed in
Iowa in recent months, and you will find
either over-extension of credit, or too
many frozen land loans, to be at the bot
tom of it. A lesson should be taken from
this fact. Such things should not be per
mitted to happen again. State authorities
should be given authority to see that they
do not happen again, and offending offi
cials who do permit them to happen
should be held accountable.’
“ One banking law change which will
be proposed and probably pushed per
sistently is a measure to do away with
the preference in favor of public funds
in the liquidation of defunct banks.
There are bank failures now pending in
the state in which this preference has
aroused the ire of depositors.
“ Gibson favors putting public funds
exactly on a par with all other bank de
posits, as is the rule now on funds de
posited in national banks. In the feder
ally supervised institutions there are no
preferred creditors. Even the United
States must take only its proportional
share of federal deposits, in cases of na
tional bank failures, according to Gib-

Not Good Business
Trying to influence a man to take out
a larger policy at one time than he thinks
he can afford is not good business. I f he
is satisfied now you will be the logical
agent to write the additional business
later on.— The Manhattan Life Bulletin.

IO W A STATE TR A V E LIN G
M E N ’ S A S S O C I A T I O N
THOSE ELIGIBLE TO MEMBERSHIP ARE:
white male persons 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.
This Association Offers:
Accident Insurance at actual cost
— It has never exceeded $9.00 a
year.

‘ "5

THE BANKERS SUPPLY
COM PANY

New York
Atlanta

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

many bankers are members of this association,
have not joined, send for an application now.

H. E. R E X ,
Fleming Building

If you

Sec*y and Treas.
DES MOINES, IOWA

January, 1925

THE

NORTHWESTERN

BANKER

TTiDENTIFIED
^31 with the pro"
gress of Des
Moines and Iowa,
fo r mo r e t h a n
forty "three years.

Correspondence with Iowa ban\s
and ban\ers is cordially invited.
W e are equipped to offer you
complete, modern banking service.

Des Moines National Bank
S ixth &&Jatnz¿t S treets

C a p d a / fy O O O ,0 0 0 . 0 0

TOTAL RESOURCES MORE THAN SEVENTEEN MILLION DOLLARS

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

T H E

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

January, 1925

B A N K E R

W ill Devote

T A T U M
Sectional Post Binders

There is a Tatum Sectional Post Binder for
every need.
The Elsinore Binder (shown above) with its
binding of red leather and tan corduroy, is
built for high-grade work.
For records of less importance, there are
binders in leather and canvas, and in full
canvas; each made to be the best in its field.

KOCH

BROTHERS

PRINTERS

BINDERS

Fourth and Grand

DES MOINES

Get Closer to Your Customers
To recommend and sell the Iowa National Fire policy
to your customers will create a closer and more intimate
relationship that will be well worth while in future
transactions.
Hundreds of Iowa bankers know the Iowa National Fire,
its officers and the popularity it enjoys among not only
business men but the entire state.
FRANK L. MINER
President

O. M. SPENCER
Vice President and Secretary

C. S. VANCE
Vice. Pres. & Underwriting Mgr.

Iowa National Fire Insurance Company
DES MOINES, IOWA

“ RED SP E C IA L ”
RUBBER STAMPS
“

SAME D A Y SERVICE ”

DES MOINES RUBBER STAMP WORKS

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

Full
Bank

Time

Grant McPkerrin, well known Des
Moines banker, has resigned as presi
dent of the Central Trust Company in
order to devote his entire time to the
presidency of the Central State Bank.
Both are Des Moines institutions but
are not affiliated. Mr. McPherrin is
succeeded in the Central Trust Company
by Mark L. Johnson. His position on
the Central Trust Company directorate
is filled by Dr. W. W. Pierson.
Mr. McPherrin leaves the Central
Trust Company in order to give the
Central State Bank his entire time and
energy, having felt that since the two
institutions are separate, the latter in
stitution deserves his whole time and at
tention. Business of the Central Trust
Bank has grown to such an extent the
past few years that deposits now total
more than eight million five hundred
thousand dollars.
Dictionary Won’t Help
A Loachapoka, Ala., girl is credited
with the following outburst of the Eng
lish language “ as she is spoke” in the
realms of flapperdom today:
“ My dear, last night I met the most
divine egg I have ever witnessed. He’s
the porcupine’s quills, all of them. He
has the biggest shoulders, they’re too cute
for anything, and his eyes and nose are
just gorgeous, just gorgeous. Does he
dance well? A regular St. Vitus, I mean
to tell you. And not only that, my dear,
he plays the saxophone like an angel out
of heaven! He’s the oil works, all right.”
The essence of simplicity, dearie, and
so easy for any old oil-can to under
stand ! Cuckoo!
He W ill Persist

Did it ever occur to you that one way
to make life insurance doubly effective
and permanent was to sell a second policy
to the same insured? In this way he will
be doubly impressed with its necessity
and, being so, is likely to hang on to such
an investment.— ( Additional Policies) —
Prudential Weekly Record.

How about a bank mag
azine individualized
and named by your
self suitable for all
departments of your
institution, at an amaz
ingly low cost?

PM. REED
111 W . Washington St.. Chicago

THE

January, 1925

NORTHWESTERN

About

BANKER

W e want to take this opportunity of extending to Banks
and Bankers throughout this territory, our sincere best
wishes for a most happy, and successful New Year. And
at the same time we wish that the obvious factors which
at this time lead all o f us to believe that the New Year
will be exceedingly prosperous and that business condi
tions will be better than ever before, we hope these
anticipations for 1925 will become a realization.
W e believe that they will become a realization. And ac
cordingly our plans are being laid for a bigger and better
year than ever before in the Bank Building business. W e
again wish you a happy New Year, but want to leave a
thought with you which we believe will prove profitable
to your Board of Directors: Consult the Lytle Co. in 1925
when you plan your new banking home.

52&LYTLE Co.
7 / ie C a p it e Ù
B o 1 t e %

An Organization
Equipped
to Serve You
Take Advantage of Long
Experience in the Bank
Construction Business.

J. A . RA V EN , President
Sioux City, Iowa •

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

B a n k

B u il d in g ?

THE

NORTHWESTERN

BANKER

January, 1925

INDEX T O ADVERTISERS

Page

A llyn , A. C.....................................................
Am erican Bond & M ortgage Co. . . . .
Am erican Commercial & Savings
Bank ..........................................................
Am erican National Bank, St. P a u l..
A nnis & R oh lin g ......................................
Am erican F ixture Co.................................
A utom atic Recording Safe Co.............

58
35
77
65
51
80
66

Bank of A m erica ....................................
Bankers Supply Co....................................
Berkow itz Envelope Co. ....................
B lackh aw k National Bank, W aterlo o
B rokaw & Co.................................................

29
86
51
78
36

C
Capitol H ill M onument Co....................
Cedar Rapids L ife Insurance C o . . . .
Cedar Rapids N ational Bank ............
Central State Bank ................................
Central T rust Company of I llin o is ..
Chapman, P. W ...........................................
Chase National Bank ......................
Chicago Trust Co......................................
Citizens Trust & Savings Bank,
Aberdeen ..................................................
City National Bank, Clinton ..............
Claridge H otel ...........................................
Consolidated N at’l Bank, D u b u q u e ..
Cox Co., W . C.............................................

50
40
73
85
62
33
61
28
55
77
55
70
64

Des M oines D uplicating Co................... 25
Des M oines Life & A n n u ity Co...........42
Des M oines National Bank . . 37 and 87
Des Moines Rubber Stamp W o r k s . . 88
Drovers National Bank ......................... 68
E

E llis & H olland Co.................................... 40
Eppley H otels Co........................................ 50
E rn st & E rn st ........................................... 56
F

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Federal Reserve Bank of St. Louis

82
74
23
32
61
33

G
Girard National Bank .......................... 65
Gordon-Van Tine Co................................ 91
Guaranty Trust Co.................................. 51
H

Hammond Printing Co..........................
Hancock, John, Mutual Life Ins. Co.
Hanover National Bank .....................
Holstein Savings Bank ................... . .
Hyney Emerson Co..................................

58
43
64
25
34

84
83
24
72
28
65
2
2

Page

National Life Association ................. 45
National Park Bank .............................. 27
North American National Life In
surance Co......................................... 41
Northern Trust Co............................. 84
Northwestern Life Insurance Co. . . . 40
Northwestern National Life Insur
2
ance Co...............................................
Northwestern National Bank, Min
neapolis ..............
3

O
Omaha Life Insurance Co............... 43
Omaha National Bank .......................... 60
Omaha Printing Co............................ 59

P
Packers National Bank ..................... 58
Peoples Trust & Savings Bank. . . .
76
Polk, Corley, Wheelock Co.............32

Illinois-Merchants Bank ................. .. .
International Life Insurance C o ....
Iowa Guarantee Mortgage Corpora
tion ...........................................................
Iowa Lithographing Co. ......................
Iowa Loan and Trust Co.......................
Iowa National Bank, Davenport . . .
Iowa National Bank, Des Moines . .
Iowa National Fire Insurance Co___
Iowa State Traveling Men’s Asso
ciation .....................................................

92
38
30
26
5
71
75
88
86

Federal Surety Co....................................
F irst Iow a State T rust & Savings
Bank ...............
F irst National Bank, Chicago .........
F irst National Bank, D avenport . . .
F irst National Bank, Dubuque . . . .
F irst N ational Bank, D uluth . . . . . .
F irst National Bank, Omaha ...........
F irst National Bank, Sioux C ity. . .

Page

First National Bank, Waterloo . . . .
First Wisconsin National Bank . . . .
Fisher Co......................................................
Flex-Tic Supply Co.............
Foreman National Bank .....................
Forgan, Gray Co.......................

Hoch Bros......................................

B
Lincoln National Life Insurance Co. 44
Live Stock National Bank, Sioux
City ........................................................... 76
Lytle Co........................................................ 89

It
Rand McNally Co................................ 81
Reed, P. M............................... . . 25 and 88
Ross Gould Co..................................... 66
Royal Union Life Ins. Co. . . 46 and 47
S

Sanders-McCulloch Co................
Seaboard National Bank .....................
Security State Bank, Keokuk .........
Southern Surety Co............................ 82
Stanley Henderson Co............................
State Central Savings B a n k ......... 27
Stock Yards National Bank, Chicago
Stock Yards National Bank, Omaha.

26
64
70
50
78
59

T
True-Webber Co........................................ 76
IT

M
Mason City Brick & Tile Co..................28
McClintock Co............................................ 64
Mechanics & Metals National Bank 54
Medical Life Insurance Co................... 43
Merchants National Bank, Cedar
Rapids ..................................................... 79
Midland Mortgage Co............................. 50
Midland National Bank ........................ 62
N

National Bank of the Republic . . . . 25
National City Co........................................ 61

Union Trust Co.......................................... 21
Universal Life Insurance Co................ 44

V
Valley National B a n k ............................ 76

W
Welch Printing Co.........................'......... 22
W essling ................................................... 48
Western Advertisers Association . . 27
Western Life Insurance Co..................... 45
Where to Buy Page .............................. 52
White, Phillips. Co.................................... 28

THE

January, 1925

NORTHWESTERN

BANKER

Now Let’s Consolidate!
During the war, when Yankee Doughboys had won a section of trench, they didn’t sit down right
away to take things easy.
Their first thought was to “ dig in” — to consolidate their positions.
“ Digging in” under fire wasn’t easy. One took whatever shelter was at hand. But when the
lull came— when you were “ sitting pretty” with the Boche on the run— that was the time to “ con
solidate.”
For four years the Corn Belt has been under fire. “ Digging in” has been almost impossible.
Farmers have been just “ making things do”— getting along because they had to.
But now the lull has come. Low crop prices are on the run. The only trouble is that the trenches
aren’t very tenable. The ground cost an enormous amount. The money tied up in it represents a
staggering capitalization— far too high unless its earning power is commensurate with it.
Unless the Corn Belt farmer possesses the means to take full advantage of the producing value of
his farm, he will speedily relapse into the unhealthy condition from which he has but now emerged.
He must not only be permitted to equip himself with adequate building facilities, but he should be
given every encouragement to do so.

T h e C orn B elt M ust “ D ig In ”
When the earning power of any business can
be increased without materially increasing the
investment in that business— that is good busi
ness.
Gordon-Van Tine modern, efficient farm build
ings offer just such an opportunity. They will
give to the Corn Belt farmer— your client— such
adequate facilities as he needs for increasing his
profits and consolidating his position.
They are guaranteed for quality and up-tothe-minute efficiency. And yet their cost is so low
that they are practically pre-war values. For
from the beginning Gordon-Van Tine has stood—
at times practically alone— against extortionate
prices.
All expansion— increase of earning power— is
paid for out of profits. The Corn Belt can do that

now as it re-invests its profits so it will buy insur
ance against repetition of the last four years.
As you lend your money to build up your com
munity you are building up your own bank.
When your client buys a Gordon-Van Tine build
ing you know your investment is safe— and
profitable.
In our Free Books of Homes, Barns and Build
ing Materials, you will find adequate proof of the
way we can serve your community and help you
protect your investments.
Many Corn Belt bankers find them of invalu
able assistance in keeping track of market de
velopments. We shall be pleased to send them to
you, free of charge. The coupon brings them at
once. Mail it today.

G o rd o n -VanTineCo.
ESTABLISHED

IÔ6S

S a tis fa c tio n G u a r a n t e e d o r M o n ey Back

G o rd o n Van

T in e

C o .,

4 8 0 C a se S tre et,
D a v en p o rt, Iow a .

Resources O ver $1,000,000.00
R e fere nc es: A n y B a n k in D a v e n p o r t ; C o n t in e n t a l a n d
C o m m e rc ia l N a t io n a l B a n k , C h ic a g o , III.

480 Case Street

Davenport, Iowa

P lea se s e n d m e y o u r fr e e b o o k s on H o m e , B a rn s and
B u i l d i n g M a t e r ia ls .

Nam e

_______________________________________________________

A d d ress

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

___________________________________ .________________

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ILLINOIS MERCHANTS
BANK BUILDING
CHICAGO

A C H of the three old banks which are now united in the Illinois
Merchants Trust Company has brought to the combined institu
tion a special reputation for strength in particular fields of banking.
Thus, this new and greater house of banking—now one of the largest
in the country and one of the principal underwriters and distributors
of high grade securities in the West—offers to its customers the bene
fits of an unusually well balanced organization, one which renders a
broad, comprehensive service in every department of finance.

Capital and Surplus, Forty-Five Million Dollars - Resources Approaching a H a lf Billion Dollars

Illinois Merchants
Trust Company
qA

S A L L E ,

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

J A C K S O N ,

consolidation o f the Illinois Trust & Savings ’B ank,
The SMerchants Loan & Trust Company and
The Corn Exchange National Bank
C L A R K

A N D

Q U I N C Y

S T R E E T S

•

C H I C A G O

Full text of The Northwestern Banker : January 1925, Thirtieth Year, Number 449

FRASER