Full text of The Northwestern Banker : January 1940, Forty-Fifth Year, Number 630

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JANUARY
1940

A M O U N T A IN V A L L E Y IN W IN T E R


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Federal Reserve Bank of St. Louis

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To our many friends in the Iowa banking fraternity,
Merchants National Bank officers, directors and employes
extend happy New Year's greetings.
May you find the fullest measure of H ealth, H appiness
and Prosperity through 1940!

A CEDAR RAPIDS BANK

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SERVICING A LL IOWA.

NATIONAL BANK

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orncERs
J a m e s E. H a m i l t o n , Chairman
S. E. C o q u il l e t t e , President
H. N. B otson, Vice President
R o y C. F o l s o m , Vice President
M a r k J. M y e r s , V. Pres. & Cashier
G eorge F. M il l e r , V. Pres. & Trust Officer
M a r v in R . S e l d e n , Vice President
F r e d W. S m i t h , Vice President
J o h n T. H a m i l t o n II, Vice President
R. W. Manatt, Asst. Cashier
L. W . B r o u l i k , Asst. Cashier
P e t e r B a i l e y , Asst. Cashier

R. D. B row n , Asst. Cashier
O. A. K e a r n e y , Asst. Cashier
E. B. Z b a n e k , Building Manager

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Member Federal Deposit Insurance Corporation

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N orthw estern Banker, published m onthly by the D e Puy P u b lish in g Company, Inc., at 555 7th Street, D es M oines, Iow a.
Subscription, 35c per copy, $3.00 per year. Entered as secon d -class matter at the D es M oines post office. Copyright, 1940.


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Federal Reserve Bank of St. Louis

3

S T A T E M E N T OF C O N D I T I O N
December 30, 1939

C entral National Ba n k
AND

F IF T H

DES

TRUST
AVE.

CO M PA N Y

B e tw e e n W A L N U T

and

M O I N E S ..................

LO C U ST

IO W A
LIA BILITIES

RESOURCES

D em and Deposits __$17,690,586.51
Savings Deposits __ 2,098,860.18
P ublic Deposits __ 2.226,171.00

Cash and due from
F e d e r a l Reserve
and other Banks__$9,470,713.84
U nited States Gov­
ernm ent Securities 3,637,440.19
$13,108,154.03
M unicipal S e c u ritie s____________
735,065.49
M arket B o n d s _________________
653,151.22
839,863.82
Short Tim e S e c u ritie s___________
Loans and D isco u n ts___________ L 8,497,745.65
Overdrafts ____________________
865.65
Stock Federal Reserve B ank____
42,300.00
86,430.00
Accrued Interest R e c e iv a b le ____
Bank Prem ises and E quipm ent__
304,634.00

Discount Collected
Common S to c k __
P referred Stock __

$22,015,617.69
105,114.75
550.000. 00
450.000. 00
$1,000,000.00

Surplus _______________________
Undivided P r o f i t s ______________
Reserves ______________________
Reserve for T a x e s ______________

450,000.00
282,565.63
394,911.79
20,000.00
$24,268,209.86

$24,268,209.86

U n ited S ta te s G overnm ent and oth er se c u ritie s c arried a t $955,579.00 are p le d g e d to secure p u b lic and tru st
d e p o sits as requ ired b y law .

DIRECTORS
G. E. BRAMM ER
B R A M M E R , B R O D Y , C H A R L T O N & PA R K E R

MARK L. JO H N SO N
REAL E ST A T E AND

IN V E S T M E N T S

E. F. BUCKLEY

GUY E. LOGAN

V IC E P R E S ID E N T

P R E S ID E N T , S T A N D A R D C H E M IC A L CO.

HARRY GOLDM AN
P R E S ID E N T , C. C. T A F T CO.

WM. J. G O O DW IN
C H A IR M A N , B O A R D OF D IR E C T O R S

H. F. GROSS
SE C R E T A R Y , IO W A M U T U A L T O R N A D O
IN S U R A N C E A SSN .

JOHN A. GUNN
P R E S ID E N T , E M P L O Y E R S
M U T U A L C A SU A L T Y CO.

W A LTER E. MUIR
P R E S ID E N T

LUTHE

HARDW ARE

IN V E S T M E N T S

JU LIA N A. PE V E R IL L
P R E S ID E N T , H U D S O N -J O N E S A U T O C O M PA N Y

CHAS. N. PIER C E
V IC E P R E S ID E N T , L A N G A N P A P E R CO.

GROVER C. H U B B E L L

H E N R Y M. W ILSO N

T R U S T E E , F. M. H U B B E L L E S T A T E

V IC E P R E S ID E N T C U S H M A N -W IL S O N O IL CO.

“IOWA’S FRIENDLY BANK”
M em ber Federal D eposit Insurance C orporation


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Federal Reserve Bank of St. Louis

C O M PA N Y

GEORGE A. PEAK

Uniformed Bank G uards sym bolize the character and
stability of the Bank and create an im pression of effi­
ciency. Your Bank's checks likew ise reflect the char­
acter and efficiency of the institution. O utstanding
business organizations from coast to coast, including
m ore than 75% of the nation's largest banks, use La
M onte Safety P apers for checks and other negotiable
instrum ents. G eorge La M onte & Son, Nutley, N. J.


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Federal Reserve Bank of St. Louis

S A F E G U A R D I N G

THE

W hen n ew fro n tiers are to be gained, th e h ard y
scout plays th e lead in g role. It is he w h o forges
ahead to feel o u t dangers and sound th e alarm
for th o se w h o are to follow .
C a p ita l Stock Fire Insurance is in d u s try ’s tru s t­
w o rth y s c o u t. W i t h o u t t h e co n stan t vigilance
of th is sound and effective p ro te c tio n , all in d u s­
tria l progress w ould
be slow ed dow n or
stopped.
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T he
en gineering
and in spection ser-

N A T I O N ' S

BUSINESS

vice of T he FIome and its policy of prudent yet
progressive underw riting, provide for industry
the safest and most reliable precaution against
loss follow ing insurable mishaps.
I n d u s t r y c r o s s in g f r o n tie r s need n o t be
exposed friendless to savage a tta c k s and th e
g a u n tle t of fire, w in d sto rm , explo sio n and
sim ilar hazards. This
I N S U R A N C E kind of insurance —
ear to g ro u n d , eye to
j
COMPANY
future — safeguards
th e n a tio n ’s business.

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N E W YORK

Through its agents and brokers, TH E H O M E is the leading insurance protector o f American Homes an d the Homes o f American Industry

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Federal Reserve Bank of St. Louis

T IS a tradit ional policy of the Chase

T

National

Bank

to

effective c o r r e s p o n d e n t

maintain

an

b a n k service.
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a domi­

S u p p 1y i n g

the

needs

n a n t f a c t o r in its d e v e l o p m e n t as a
worl d bank. Br oaden c u s t o m e r service
with Chase c o rresp o n d e n t

facilities.

THE CHASE NATIONAL BANK
O F TH E

C IT Y

OF

N EW

YORK

M em ber Federal Deposit Insurance Corporation


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Federal Reserve Bank of St. Louis

•

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JA N U A R Y

19 4 0
• # •

FORTY-FIFTH Y E A R

NUM BER 630

Oldest Financial Journal West of the Mississippi River

IN THIS ISSUE
Editorials
Across the Desk from the P u b lish er..................... ..... ................ .................. ............. .

8

C LIFFO RD DE PUY
Publish er

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

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

Feature A rticles
F rontispiece— “ Moonlit W a te rs”
..............................................................................
Public R elations— Find W hat the Public W ant:;........................... G. T. Mickelson
T rend of Beef C attle P rices..............................................................................................12,
News and Views............................................................... ....................... Clifford De Puy
W hat They Said a t Richmond....................... ................................... ................................
W estern N ebraska H u n te rs................................................................................................
Bank A dvertising T hat Prom otes Community P ro g ress............ H. V. Huntoon
Legal D epartm ent ......................................................................... .......................................
M id-America C asualty Insurance Company in E xpansion P ro g ram ....................
Get B etter A cquainted W ith Savings and L oan................................... J. C. E nyart

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11
13
14
15
15
16
18
20
21

Editor

Insurance
555 Seventh Street,

W hat H appens When an A ssured D ies................................................... A. J. Rhodes

23

Des Moines, Iowa
Telephone 4-8163

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Bonds and Investments
H ighest Level Since 1937..... ........................ ......................................................................
The M onth’s M arket M aneuvers................................................ ...... James H. Clarke
Iowa Investm ent B anking New s....................................... ............................. .......... ......
N ebraska Investm ent B anking News........ ......... ........... ............ ......... ....... ..................

29
30
32
39

State Banking News
NEW Y O R K O FFICE
Frank P. Syms
Vice President
330 West 42nd Street
Telephone Bryant 9-5490

M IN N E A P O L IS O FFICE
J. A . Sarazen
Associate Editor
Telephone Hyland 0575

N ebraska News ......................................................................................... ......................... .
Omaha Clearings ................ ................. ...... ...................... ............... ........................
Lincoln Locals ............................................ ............ ....................................... .............
South D akota New s..................... ....................................... .................................................
M innesota News ............................................... ....... ............................................................
Twin City New s........................ .................................................. .............................
N orth D akota N ew s................................................................................................... .........
M ontana News ............................... ............. ..........................................................................
Iowa News ................ ........................................................................................ ...................
F irs t A nnual M id-W inter B anking Conference................. .................................
M erchants N ational Bank in 1903............................................ ............ ................ ..
Iowa In te re s t R ates................................. .................................................... .............. .

41

43
45
47
49
51
53
55
57
61
62
66

Savings and Loan
Be Sure You Know Y our Insurance Coverage................ .......... Homer Templeton

77

The D ¡rectors* Room
A Few S hort Stories to M ake You Laugh

82
M EM BER
Audit Bureau of Circulations
Financial Advertisers Association


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Federal Reserve Bank of St. Louis

Across the Desk
From the Publisher

P erhaps we should say, 1940
1940 Here
W e Come! here we are, ra th e r th an 1940 here

we come, but as we are ju st on
the threshold of the New Y ear w ith all of its u n ­
w ritten history, perhaps we h ad b etter say, “ Here
we com e.”
W ith most of the w orld a t w ar, and w ith a po­
litical cam paign on in the U nited States, it is h ard
to know exactly w h at kind of a year it will be
business-wise, but looking at some of the statistics
and some of the forecasts from num erous econo­
mists, we can present the follow ing facts, and
w ith them , some of the more conservative predic­
tions.

1. Industrial production in 1938 was 86.
2. Industrial production in 1939 was 105, with
the high point being reached on December 9 of
130, according to the Federal Reserve Board in­
dex.
3. Industrial production for 1940 is estimated
at 110.
4. National income in 1939 was $69,000,000,000.
5. National income for 1940 is estimated at $71,000, 000, 000 .

Thus, statistically speaking, 1940 looks like a
good business year.
In a survey recently m ade by C. M. Chester,
chairm an of the General Foods C orporation, to the
Congress of A m erican In d u stry , he found th a t
em ploym ent in m an u factu rin g industries was 14
per cent above 1938.
Of the com panies who answ ered his question­
naires, 83 rep o rted an increase in production over
the same time last y ear and m ost of them reported
changes of from 10 to 19 per cent.
Also, his survey showed th a t 65 p er cent of the
companies reporting expect business for the next
six m onths to be as good or b etter th an a t present.
P erhaps m ost significant of all Mr. C h ester’s
statem ents was th is: “ If we can m ake 69 billion


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Federal Reserve Bank of St. Louis

dollars in an atm osphere of m isunderstanding,
w hat c a n ’t we m ake by all pulling togeth er? A
national income of 100 billion dollars is n ’t ju st a
fan tastic goal, it can become a dream come tr u e .”
This statem ent by a conservative and successful
business m an and not by a wild-eyed New Dealer,
really m eans som ething and can be accom plished if
the business men of the country can once again
get the green lig h t to go ahead.
N ineteen h undred fo rty —here we come, and
m ay it be a b e tte r year and more successful than
those in the past, and m ay Am erica continue to
show the re st of the w orld how peoples of different
races, different creeds and different nationalities
can live together un d er one flag, and one govern­
m ent peacefully and in harm ony w ith one another.
W hen Neville C ham berlain
sacrificed Czechoslovakia at
Munich, most of the w orld felt
th a t w ar had been averted. E vents since th a t
tim e have proven the opposite.
W hether history will record th a t B ritain and
F rance should not have gone the ex tra mile with
H itler in order to m aintain peace at th a t moment
rem ains to be seen, but a t least V incent Sheean in
his recent book entitled “ Not Peace B ut a S w o rd ”
believes th a t it was a very d ark m om ent in w orld
affairs and expresses him self this w ay: “ On th a t
n ight when we knew about M unich I did not sleep
a t all, but lay looking at those dimmed fu n eral
lights for hour a fte r hour, re lu c ta n t to tu rn them
off since they seemed to be the perm anent illum i­
nation of E urope th ereafter. The nights when we
had expected the bom bers seemed, in retrospect,
nights of h o p e ; for no m aterial catastrophe could
have destroyed the foundations of hope as M unich
did. From th a t night on I knew th a t F ran ce and
E ngland w ould never fight for anythin g w orth
fighting fo r; th a t th eir resistance, when it came,

Another View
of Munich

9

would come for th eir m oneybags or th eir empires,
never for a principle of any consequence to the
hum an race • th a t no pledged w ord, no law and no
reason could henceforth count in the processes by
which governm ents determ ined the fate of m an­
kind. A nd th a t in the end the m aterial catas­
trophe would come, th a t it would be fa r worse
th an it m ight have been this week, and th a t our
incalculable common loss by this su rren d er was in
vain, were certainties cold and deadly in the blue
light, irrefu tab le in every daw n from th a t to th is .”
Mr. Sheean believes th a t these dim blue lights
will be the perm anent illum ination of E urope fo r
m any years to come. A t the mom ent, perhaps such
seems to be the case, b u t eventually, out of the
turm oil and the w ar, out of the m isunderstanding,
an d the bloodshed, m ust come a different form of
governm ent, if E urope is not to perish from the
face of the earth.
Neville C ham berlain trie d to prevent another
w orld w ar at M unich but he was dealing w ith a
gan g ster whose w ord was no good.
In m ost business tra n s­
actions, two heads are sup­
posed to be b e tte r th an
one, and th a t likewise ap ­
plies, according to W illiam R. W hite, S uperin­
ten d en t of B anks of New Y ork, to the question of
having two bank supervisory authorities.
There has been considerable agitation by the
F ed eral Reserve B oard to have one F ed eral Sup­
ervisory au th o rity and to do aw ay w ith the ex­
am ination by S tate S uperintendents of Banks.
In com m enting on this question Mr. W hite, in
speaking before the th irty -eig h th annual conven­
tion of the N ational Association of Supervisors of
S tate B anks, said: “ I t is a grave m istake to as­
sume th a t because two agencies possess sim ilar or
identical au th o rity for a p a rtic u la r purpose con­
flict m ust therefore arise in the exercise of such
au th o rity . On the contrary, I believe th a t m any
b ankers feel th a t the advantage to be gained from
two expressions of opinion w ith respect to th eir
in stitu tio n s usually outw eighs any disadvantage
which m ay occasionally result.
“ If to day we were to consolidate into one
agency all the pow ers possessed by the various
bank supervisory authorities now in existence, we
would have gone a long w ay tow ard creating a
d ictato rsh ip over the banking and m onetary sys­
tem of this country. Such centralization is not
only unnecessary, but highly dangerous to the
continued existence of both our banking system
and our A m erican form of governm ent.”

Opposes Single
Bank Supervisory
Authority


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Federal Reserve Bank of St. Louis

We quite agree w ith Mr. AVhite th a t there
would be no easier way to arrive at a financial dic­
tatorship in this country th a n to have exam ina­
tions of banks m ade only by the F ed eral Reserve
System. W hen the F ederal authorities check the
banks as they do now, and likewise the state
authorities, this double checking is both beneficial
to the banks and to the depositors and we th in k
should be continued.

Morgenthau SugWe w ere confident th a t
gests Fifty Billion the hally-h°° wouId S00I>
Debt Limit
s ta rt to increase the n a­
tional debt,
S ecretary of the T reasury H enry M organthau,
Jr., has told the house appropriation sub-comm it­
tee th a t he believes the national debt lim it should
be raised to $50,000,000,000.
The present sta tu to ry lim it which the T reasu ry
now is approaching is $45,000,000,000.
If the debt lim it is raised to $50,000,000,000 then
as soon as th a t point is reached, it will be in ­
creased, no doubt, to $55,000,000,000 and $60,000,000,000 if the present adm inistration and its
spending-lending program continues.
W hen is the tim e to stop and consider expenses?
I s n ’t it NOW ?
W hen is the tim e to reduce our national over­
head? I s n ’t it NOW ?
W hen is the tim e to stop the operations of a lot
of bureaus which are needless and unnecessary?
I s n ’t it NOW ?W hen is the tim e to stop spending money fo r a
lot of alphabet XYZ organizations th a t should
never have been created in the first place? I s n ’t
it NOW ?
I t is tim e for the adm inistration in W ashington
to ta lk about reducing expenses before th ey talk
about raising the debt limit.
Business is being so re ­
stricted and “ policed ” by
every kind of governm ent
agency th a t it does not have
the freedom to grow and develop as it should.
Som ething cannot be created from nothing, no
m atter w hat the “ sm art b o y s” a t W ashington
m ay think. Taxes can only be collected if busi­
ness m akes a profit and in the years durin g which
the U nited S tates showed the g reatest grow th and
developm ent business had an o p p ortunity to ex­
pand and free enterprise was given an opp o rtu n ity
to go forw ard.
Governm ent com petition m ust m ake w ay fo r p ri­
vate com petition if perm anent prosperity returns.

Give Business
Freedom
to Grow


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Federal Reserve Bank of St. Louis

11

Publ ic Relations —

Find W hat the Public W ants—
Then Give It to Them
AM convinced th a t it is th e d u ty of
all banks, large and sm all, and of all
g rades of a b a n k ’s personnel, to
play a p a rt and to sho u ld er th e ir re ­
sponsibility in th e ta sk of em ploying
sincere salesm an sh ip of th e services
b an k s in general, and th e ir own in ­
stitu tio n in p articu lar, has to offer to
th e custom ers and to th e public.
W h a t p ictu re comes in m ind w hen
we th in k of th e b an k of yesterday?
T he p ictu re I d raw m ay be exagger­
ated, b u t it w ill p o rtra y th e idea th a t
w as prev alen t.
A rm y o u rself w ith a c h a rt of y o u r
fam ily tree, p u t on a w h ite collar,
b ru sh up y o u r Sunday suit, and look
scared to d eath —you are about to en te r
a bank. Yes, you m u st w ait a w hile
before you can talk to th e vice p resi­
dent, so sit on a h a rd ch air and gaze
around. W h at do you see? H eavy iron
cages, cold m arble floors, thick-girth
pillars, m enial clerks, stern-faced ex­
ecutives, an atm o sp h ere as fro sty as
L ittle A m erica. You are seated, b u t not
a t ease, in an in stitu tio n deep in tr a ­
dition, shackled by convention, topheavy w ith im portance, su rro u n d ed by
m y ste ry and insu lated by a ste rn u n ­
bending n atu re. T his w as th e large
b an k of y esterday. The a ttitu d e w as
“W hy should we allow you to do b u si­
ness w ith our b an k ?” “No, we can ’t
w alk across th e stre e t to get a new
account—you w ill have to b rin g it
h ere.”
T h an k goodness th is p ictu re has
changed. T oday we find m odern b a n k ­
ing room s, light, a iry and businesslike,
tim e saving devices and equipm ent,
wide aw ake, frien d ly aggressive clerks,
e n th u siastic executives, w ho know
how to sm ile. The air of m y stery is
gone. B anking is now conducted as a
service to th e public. B anks are in sti­
tu tio n s for th e public to use and to
w hich th e public is inv ited and w el­
comed. B an k ers cam e to realize th a t
service is h a rd e r to sell an d advertise
th a n tangible goods and th e y decided
to devise w ays and m eans of m eeting
th is situation.
In p ractically all of th e larg er banks,
public relatio n s d ep artm en ts have
been organized, w ith som e senior offi
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Federal Reserve Bank of St. Louis

By G . T. Mickelson
Atto rney
Selby, South Dakota

cer of the b ank in control of th a t de­
p artm en t. Such an organization w ould
h ard ly be practical for mose banks
b u t certain ly some such system in a
modified form could and should be set
up in every bank, no m a tte r how small.
Some officer should be designated,
am ong w hose duties w ould be th e m at­
te r of public relations.
A ny public relatio n s organization
m u st and should w ork closely w ith the
p ersonnel departm ent, or in other
w ords, w ith th e em ployees of the bank.
Prospective em ployees should be
w eighed on th e basis of th e ir value as
exponents of b etter public relations.
M any banks m iss a fine o p p ortunity
to secure new business and cem ent
th e ir relationship w ith old custom ers
because th e em ployees do not attach
sufficient im portance to th e w ork th ey
can do in fu rth e rin g b e tte r public re ­
lations. Most of th e book-keepers,
clerks and ju n io r -officers of our banks
feel th a t th e ir only job is to perform
th e actual w ork assigned to them w hile
th ey are w ith in the four w alls of the
in stitu tio n . T hey do not realize the
o p portunities w hich th ey have to
create b e tte r public relations for th e
b ank th ro u g h th e ir contracts d u ring
th e ir social hours w ith th e ir friends
and acquaintances. N either do they
realize th a t in th e eyes of the general
public th ey are considered an d looked
upon as em ployees and officers of a

certain bank, and are in fact TH E
bank, to m any people, at all tim es and
not ju st d uring w orking hours; th a t
the b an k is judged by th em no m atter,
w hat position th ey hold. It is therefore
m ost im p o rtan t th a t all em ployees are
th oroughly fam iliar w ith th e ir B ank’s
m ethods and policies, in o rder th a t
th ey m ay be able to explain them to
o thers w hen necessary. It is up to th e
m anagem ent of every b an k to see th a t
th e ir em ployees do have this know l­
edge.
You all know how w ell you like to
w alk into a stran g e store and be m et
by a courteous, frien d ly clerk. You
m ay have en tered th a t store w ith o u t
any in ten tio n of buying anything, b ut
in stan tly you feel v ery guilty if you
do not. T here is no difference in this
respect betw een a d ep artm en t store
and a bank. C ourtesy and friendliness
is an absolute essential in any business
dealing w ith th e public. M oney is very
close to th e average m an ’s heart. If
for any reason he takes a dislike to
you, he w ill probably change his b a n k ­
ing connections, or go some place else
w here he can receive the sam e service.
In th e banking business we m ust
realize th a t we are dealing w ith two
w idely separated subjects—F igures
and H um an Beings, m aking our job
all th e h arder. F ig u res are cold, im ­
personal things. H um ans are ju st the
opposite, no tw o of them alike. Your
job is to figure out how to tre a t them
to inspire th e ir confidence and m ake
them like to do business w ith you and
y o u r in stitution. N eith er is a b an k the
easiest place to m eet stran g ers a t the
v ery best. You are usually forced to
deal across a m arble counter, at a rm s’

Give Your Customers
A #/Mental// Handshake

12
length, so to speak. A b ank carries a
form al, busy atm osphere. It is no place
to visit a t any length, and for th e m ost
part, custom ers do not expect it and
still, one little in q u iry about som e­
th in g th a t is of g rea t in te re st and im ­
portance to him , w ill often tim es do
as m uch to w arm him up inside, as
spending an h o u r w ith him u n d er
o ther circum stances.
Let us also consider th e m a tte r from
th e cu sto m er’s point of view. F irs t of
all he w an ts to be w aited on prom ptly.
He is usually in a h u rry . He doesn’t
w an t or expect you to unn ecessarily
keep him w aitin g for even a m om ent,
even tho u g h its to tak e an o th e r puff
from th e cigar or cigarette before you
tu rn to take care of him. It m ay be
tru e th a t he doesn’t have an y th in g
else in p a rtic u la r to do, b u t still, he
doesn’t w an t you to keep him w aiting.
Second, and probably th e m ost im ­
portan t, he likes to be recognized and
appreciated. It doesn’t tak e m uch ef­
fort on y o u r p a rt to speak to him in a
friendly m an n er w hen he steps to y o u r

window , calling him by nam e, if you
can, and it m akes him feel m uch b et­
ter, in fact he expects it and has rig h t
to do so. A m an is a vain creatu re
w h ere his m oney is concerned. If he
is a good custom er and carries a good
balance, he feels he is en titled to a
little recognition, not th a t he w ants
to be gushed over, b u t he likes to know
th is his business is appreciated. The
little custom er w ith a sm all balance
feels th e sam e w ay about it. To him
th a t five spot is close to his heart, be­
cause he has earned and saved it, and
probably has gone w ith o u t som ething
in order to deposit it or spend it in
y o u r bank. He expects you to be in ­
terested in him because you are his
banker, because it is his business and
his n eighbors’ and frien d s’ business
th a t m akes y o u r job possible.
He
doesn’t expect you to be talking to
some one else or to be directing your
atten tio n s elsew here w hen you are
w aiting on him. He w ants and expects
y o u r undivided a tten tio n at th a t p a r­
tic u la r m om ent. H e m u st be m ade to

feel th a t his business is of vital im por­
tance to you and your bank. It m akes
no difference how big and how g rand
yo u r in stitu tio n m ay be, or how sm all
the custom er m ay be, you can’t afford
to be uppish to a single, solitary m an,
w om an or child th a t en ters yo u r bank
on legitim ate business. E v er keep in
m ind th a t it is the public, th e sm all
custom er and the large one, th a t have
m ade y o u r in stitu tio n w h at it is. D on’t
th ey really deserve y o u r appreciation
and in terest w hen it is th ey w ho m ake
yo u r job possible? The little custom er
is ju st as hu m an and ju s t as sensitive
as the big one, and some day he m ay
be one of th e “Big fellow s.” These
sm all custom ers earn m oney, buy
things regularly, and can influence
th e ir em ployers and friends, and they
are a p a rt of the public, and rem em ­
ber, we are in terested in public re la ­
tions.
In m y few y ears of experience in
the business and professional w orld,
I have found th a t th ere is nothing
quite so good for the soul as a good

f-

1

H PH E EFFECT of war on prices of agricultural products is
always of m aterial significance. Thus, it is only natural
that at the outbreak of hostilities abroad th at a special in ter­
est should be focused on the movements of the markets during

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Federal Reserve Bank of St. Louis

the last war period. David H. Reimers, President of the Live
Stock National Bank of Chicago, in response to numerous re­
quests for data pertaining to cattle prices during th at period
had prepared a chart showing the trend of prices for both fat

F

1

13
h andshake. 1 cultiv ated th e h ab it of
g reetin g m y frien d s w ith a h an dshake
w h en ev er possible, and of p u ttin g m y­
self out to speak to people, w hen I
w as still in college. I took p ride in the
fact th a t I knew every m an and w om ­
an on th e cam pus and could call m ost
of th em by nam e. W e judge people
w hen we first m eet them by th e ir
handshake. I realize th a t you can ’t
actu ally shake hands w ith every cus­
tom er th a t e n te rs y o u r b ank d u rin g
th e course of a day—it w o u ld n ’t be
practical and it w ould be out of place.
You can give him a m en tal handshake,
how ever. You ask, “W hat is th a t? ” It
is sim ply th e th in g you do, th e w ay
you act, w hen a custom er steps into
y o u r office or up to y o u r w indow ,
w hen you show an in te re st in him and
recognize him as some one of im por­
tance to you. It gives him th e sam e
feeling inside as if you had come from
behind th e co u n ter and actually grasp
his hand. He likes it and appreciates
it and comes back for m ore. You will
m ake m ore friends th a n you ever

dream ed of having, by being in terested
in people, and those friends will bring
o th er people to your bank. M ere cour­
tesy and politeness w on’t do the job,
it takes som ething more. People are
sensitive creatures, cultivate them .
I t ’s people w ho keep your bank going.
T hey can m ake or b reak you.
Public relations as I apply th e term
to the banking business, is nothing
m ore or less th an p u ttin g yo u r best
foot forw ard to the public at all tim es.
P resen tin g to them a clear, fair, h o n ­
est picture of w h at you are try in g to
do and how you do it. K eeping them
honestly inform ed. T aking them into
y o u r confidence. T reatin g them rig h t
and fair. A ppreciating them and being
in terested in them and th e ir problem s.
G iving value for every dollar they
spend w ith you.
It is alw ays the
sim ple, fundam ental, tru th fu l selling
arg u m en ts th a t w in in the long run.
So it is in the banking business. If
you w ill be tru th fu l, honest, and
straig h tfo rw ard in your dealings w ith
th e public and in th e inform ation

and feeder cattle at the Chicago m arket over the period from
1909 to the present.
Realizing th at this data is no less interesting to bankers


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Federal Reserve Bank of St. Louis

w hich you give them , th e n you are
bound to achieve pleasant, successful,
constructive public relations.

Assistant Cashier Dies
Theodore Lely, a ssistan t cashier,
The N o rth ern T ru st Company, Chi­
cago, passed aw ay last m onth, follow­
ing a brief illness. Mr. Lely whose
early banking experience w as gained
at th e Corn E xchange B ank of Chi­
cago, has been a m em ber of The N o rth ­
ern T ru st organization since 1927.
B orn in Visp, Sw itzerland, b u t raised
in th is country, Mr. Lely w as an ex­
ceptionally fine am ateu r a rtist and one
of the leading bank operating m en in
the country.
F o r several y ears he had featu red as
one of his d ep artm en tal functions the
m aintenance of classes in public re la ­
tions and w as very successful in build­
ing up a personnel w hich distinguishes
the banking d ep artm en t of The N o rth ­
ern T ru st Com pany for its splendid
handling of custom ers.

a n d o th e rs th a n liv e sto c k o p e ra to rs th em se lv es, we h a v e ob­
ta in e d p e rm issio n to p r in t th e ab o v e re p ro d u c tio n of th is
c h a rt fo r th e b e n efit o f N o r th w este r n B anker re ad e rs.

14

News

and

O F THE

B A N K IN G

V iews
W O RLD

By Clifford De Puy
AUL R. LEA CH, W ash in g to n Cor­
resp o n d en t for th e Chicago Daily
News says, “Marriner S. Eccles w ill
not accept re ap p o in tm en t as ch airm an
of th e F ed eral R eserve B oard w hen
his term expires F e b ru a ry 1, 1940.
“T h a t decision, co n tra ry to ru m o rs
floating aro u n d Chicago, N ew York
and W ashington financial districts, has
n o thin g to do w ith his differences of
opinion w ith S ecretary M orgenthau
and U n d ersecretary H anes on g o v ern ­
m ent spending and deficit financing.”
H ow ever, an o th er W ash in g to n a u ­
th o rity says th a t chairm an Eccles will
probably stay as head of th e F ed eral
R eserve B oard a fte r F e b ru a ry 1st,
w hen his term expires, b u t he w ill only
stay on a m onth to m onth basis, and
th a t R oosevelt is anxious to have him
rem ain.
Personally, we can th in k of no
g reate r blessing to th e F ed eral R eserve
System and to th e country, th a n to
have Eccles re tire to his banking, u til­
ity, M orm an in terests in U tah and take
w ith him his spending, loaning, b o r­
row ing, deficit plans w hich have been
taken over hook, line and sin k er by
P resid en t Roosevelt.

P

F o r th e first tim e in A m erica, in ­
vestors are joining a union.
U nions of w orkingm en are recog­
nized as p a rt of th e A m erican tra d i­
tion. B ankers, law yers, grocers and
railroad p resid en ts have long been o r­
ganized into associations to p ro tect
th e ir in terests. Now th e in v esto r—th e
holder of stocks, bonds, m ortgages,
deben tu res and all th e o th er scraps of
papers w hich signify in v estm en t—is
form ing a unio n of his ow n—the Amer­
ican Investors’ Union, a non-profit
m em bership corporation organized u n ­
der th e law s of N ew York.
Vern L. Bart ling, a ssista n t cashier
of th e F irs t N ational B ank of Chicago,
says th a t he alw ays reads th e N orth ­
w estern B anker backw ards by s ta r t­
ing w ith “The Director’s Room” first,
and has a good laugh before he gets
into th e heav ier articles.
A. E. Bryson, vice p resid en t of H al­
sey, S tu a rt an d Company, w ith w hom
we h ad luncheon th e o th er day in
Chicago, believes th a t th e d istrib u tio n
of securities in th e fu tu re w ill be de­
centralized and not all be u n d e rw ritte n

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Federal Reserve Bank of St. Louis

by New York houses, b u t th a t Chicago
firm s and o th er m idw estern in v est­
m en t b anking organizations w ill orig­
in ate and do a good deal of th e u n d er­
w riting.
William C. Cummings, presid en t of
th e D rovers N ational B ank in Chicago,
is probably one of th e best sto ry tellers
in the big city, and if you w an t to be
really en tertained, ju st let him keep
you laughing for 15 m inutes and you
w ill forget all about w ars, politics and
overdrafts.
Robert Lindquist, p resid en t of the
Chicago F inancial A dvertisers Asso­
ciation, and ad v ertisin g m anager of th e
A m erican N ational B ank & T ru st Com­
pany, asked us to speak before one of
th e ir recen t m eetings. In stead of m ak­
ing a speech, we discussed in ro u n d ­
table fashion, “The biggest problem
facing A m erican ban k ers in 1940”. The
m ain point discussed w as w h eth er
w ith b anks show ing good earnings for
1939 w as it a m istake to be low ering
in te re st rates on savings accounts
w hen so m uch effort in th e p ast has
been p u t on g etting people to s ta rt
savings accounts.
W e are not supposed to m ake any
m ention of it, b u t it is still a fact th a t
four officers of th e Live Stock N ational
B ank of Chicago, are w earing those
cute little mis-placed tooth b ru shes on
th e ir u p p er lips. T he four handsom e
and debonair gentlem en are John M.
Henry, executive vice president; Alden
S. Bagnall, vice president; H. P. John­
ston, and Carl Trout, assistan t vice
presidents.
J. M. Easton, adv ertisin g m anager
of th e N o rth ern T ru st Company, lost
by m arriage on C hristm as Day, his
v ery ch arm ing assistant, Miss Ruth E.
Proctor, w hen she becam e th e bride
of Harold A. Lyon of New York. Miss
P ro cto r had been associated w ith the
N o rth ern T ru st publicity d ep artm en t
for a n u m b er of years, and Mr. Lyon
w as fo rm erly advertising m anager of
th e B ankers T ru st Com pany of New
York, and in m ore recen t y ears has
been devoting his tim e to public rela­
tions w ork in behalf of banks and
m an u factu rin g institu tio n s. I t is u n ­
derstood th a t w hen R uth listened to

the ro ar of th e Lyon she couldn’t re ­
sist.
Edwin N. Van Horne, executive vice
presid en t of the A m erican N ational
B ank & T ru st Com pany of Chicago, is
telling th e sto ry of the Texas b an k er
w ho had a custom er w hose son w as
in love w ith a girl in New York so the
Texas b an k er w ired th eir correspond­
en t b an k er in N ew York to find out
about th e girl and got this w ire back.
“The young lady’s finances are nom i­
nal, h er m orals are phenom enal, give
the girl a chance.”
A Chicago taxi cab d riv er v olun­
teered th is inform ation to us th e o th er
day by statin g th at, “He lived in th e
city of Kelly, in th e county of Nash,
in the state of Horner, and th e nation
of corruption.”
No doubt this w ill all be changed
after th e U. S. D epartm ent of Ju stice
gets th ro u g h cleaning up th e W indy
City.
Henry Scarborough, p resid en t of
Scarborough and Com pany of Chicago,
has appointed Ward MacFadden as
th e ir rep resen tativ e in E a ste rn Iowa
and Illinois. Mr. Mac F adden has been
w ith Scarborough and Com pany for
five y ears and his fa th e r w as th e form ­
er secretary of th e N orth D akota B ank­
ers A ssociation
W hen O. Paul D ecker, vice president
of the A m erican N ational B ank &
T ru st Com pany of Chicago, said he
would, “Take us dow n to th e A ttic
Club for lucheon” we kn ew th ere w as
som ething w rong w ith th a t statem ent,
because how can an A ttic Club be dow n
w hen it is on th e top floor of th e Field
Building? T here w as nothing w rong
how ever w ith th e delightful luncheon
and the gorgeous view w hich we could
get from the club windows.
A banker, w hose nam e we w ill be
glad to send you upon request, asked
us if we knew th e definition for a b u s­
tle. Of course we d idn’t so here it is:
“A bustle is a deceitful seatful.”
W. (Bud) Allen, vice presid en t of
the C ontinental-Illinois N ational B ank
& T ru st Company, is including in his
c u rre n t reading “The N orm al Diet and
H ealthful L iving,” a book by W. D.
Sansum, M.D. of S anta B arbara, Cali­
fornia. Bud says th a t if he follows this
book carefully he expects to live to be
a hundred. P erh ap s th is is th e w ay
o ther m em bers of th e C ontinental staff
“keep fit,” because at th e old tim e rs’
d in n er w hich is an an n u al affair, w hich
th ey held recently, th ere w ere 355
(T urn to page 24, please)

15

W hat They Said at Richmond
A Few High-Lights From the Southern Regional Conference of the
American Bankers Association
ARLY last m o n th th e A m erican
B an k ers A ssociation held its
S o u th ern Regional C onference in
R ichm ond, V irginia, and a sim ilar
m eetin g w ill be held in D enver on
M arch 21 and 22.
Subjects discussed a t th e S outhern
C onference w ere m any and of course
of m ore th a n usu al in te re st to th e
b an k in g fra te rn ity . B riefed here are a
few of th e talks.
W illiam S. Elliott, president, B ank
of Canton, Georgia:
“T he logical, certain source for in ­
creased e a rn in g s and risin g in te re st
ra te s lies in a w idespread revival of
business. Such an u p tu rn m u st follow
a re b irth of confidence in th e fu tu re
of business. T hen th e dependable m an
w ill bo rro w for prospective needs and
business expansion. In te re st rates
w ill rise, consum er b u ying will in ­
crease and unem p lo y m en t drop to a
norm al level.
“E asy m oney has not in sp ired a
b u siness revival. Men do not borrow
m oney for p riv ate business m erely
because it is cheap. M oney th a t can­
not be used profitably is high a t any
price. W hen business is active and
th e b usinessm en confident as to th e
fu tu re, a reasonable ra te of in te re st
w ill be paid w ith o u t q uestion.”

E

P. H. Sitges, presid en t, L ouisiana
Savings B ank & T ru s t Com pany, New
Orleans:
“P e rh a p s th e m ost aggressive and
th e best w ay of com peting for b u si­
ness gen erally is by officer solicitation.
It w ould be ideal if every b an k officer
could so arra n g e his affairs as to have
several h o u rs a w eek w hich he could
utilize in calling on both old and pro s­
pective custom ers.
“G enerally speaking, com petition is
a form al incident of business. T here
is no ru le of th u m b by w hich it can
be successfully m et, but, on th e o th er
hand, th e re is no reaso n w hy any bank
cannot com pete successfully for its
sh are of th e business available, if its
m anag em en t w ill develop an aggres­
sive a ttitu d e for new business, keep an
open and actively helpful m ind in
h an d lin g its cu sto m ers’ problem s,
m ake as full use as possible of w h a t­
ever ad v antages are in h e re n t to its
situation, and in g en eral conduct its
affairs w ith reasonable confidence in
th e fu tu re .”

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Federal Reserve Bank of St. Louis

S. H. Fifield, a ssistan t vice president,
B arn ett N ational Bank, Jacksonville,
Florida:
“Local com m unities have th e ir own
p a rticu lar req u irem en ts and problem s.
The states of California and Florida
have five distinct groups w hich m ust
be served by b an k s—in tern atio n al
commerce, m anufacturing, special ag­
ric u ltu ral problem s, th e fishing in d u s­
try , and th e to u rist trade.
“W hile m an u factu rin g and agricul­
tu ra l groups in these states are akin to
those elsew here in th e ir banking
problem s, th e to u rist req u irem en ts are
separate and apart. The farm ers of
Iow a and M issouri and the g rain m en
of the n o rth have specific banking
problem s. The m an u factu rin g and fi­
nancial districts of the E a st have
th eirs, w hich banks in th e South know
v ery little about. Inasm uch as te rri­
to rial req u irem en ts are different,
b anks serving these d istricts m ust
have th e ir personnel especially train ed
to m eet these requirem ents. It be­

hooves every b ank to have its staff
geared up to see and u n d erstan d the
possibilities of every job in th e in sti­
tu tio n ,” Mr. Fifield declared.
He stressed the im portance of em ­
ploye education and tra in in g th ro u g h
study
courses,
em ploye w orking
m anuals, and group m eetings of bank
em ployes for discussions of custom er
relations.
L. W. Bishop, cashier, S tate-P lanters
B ank & T ru st Company, Richm ond:
“T here never has existed in th e his­
tory of th e A m erican banking system
a g re a te r need for close and m inute
scru tin y of our respective organiza­
tions—our m en and our m achines.
“T his need is em phasized and
heightened by th e necessity for econ­
omy.
Scarcity of acceptable loans
w ith re su lta n t low in te re st rates on
prim e paper and high grade securities
have adversely affected ban k earnings.
“A nother factor w hich has a direct
(T u rn to page 32, please)

Western Nebraska Hunters

While hunters in most sections of the country were complaining about the lack
of ducks and geese, apparently conditions were different in western Nebraska,
where the above picture was taken. Reading from left to right the hunters
are Ray Babcock of Sidney, Nebraska, a director of the P o tter State Bank;
Nels Smith, governor of Wyoming, Cheyenne; Art Storz, Storz Brewing Com­
pany, Omaha; Harold Olson, executive vice president Bank of Lisco, Lisco,
N ebraska; and Joe Sunodynes, Sidney.

16

Bank Advertising That
Promotes Community Progress
By Harold V. Huntoon
President
Union State Bank
Winterset, Iowa

H E N an ad v ertisin g cam paign
can b rin g a chain of favorable
com m ent from our depositors,
arouse en th u siasm am ong m en w ho
have nev er been our custom ers, and
prove valuable to th e business in te r­
ests of our com m unity, we believe such
a cam paign deserves to be considered
Good A dvertising.
A nd th e preceding p ara g ra p h gives
an au th en tic p ictu re of the reaction to
a series of ad v ertisem en ts w hich our
bank in au g u rated only a few m onths
ago.
To any adv ertiser, th e re is u n d o u b t­
edly som e value in sim ply “keeping
his nam e before th e public.” B ut we
feel th a t b ank ad v ertisin g can logically
do m ore th a n th at, especially w hen it
has a clear-cut m essage, delivered as
effectively as w ords and illu stratio n s
perm it.
Over a considerable period of tim e,
we had been on th e lookout for an idea
w hich w ould provide an effective

W

T Y P IC A L

THE MEN BEHIND THE SERIES—Mr. Huntoon (center) discusses an illustra­
tive detail with Harvey Pauli (left) cashier of the Union State Bank, and Paul
Blakemore (right) president of the Coolidge A dvertising Company, Des Moines
advertising agency in charge of creative work on the b a n k ’s campaign. In
the background can be seen some of the prize-winning ears submitted in the
bank ’s annual Corn Show.

sp ark for our advertising. In common
w ith m any o ther b an k ers th ro u g h o u t
the state, we had been im pressed by a

CO M M EN TS

L eafing th ro u g h le tte rs received by th e U nion S ta te B ank, as a re s u lt
of its a d v e rtisin g cam paign, th e N O R T H W E S T E R N B A N K E R selected
th e co m m en ts below as re p re s e n ta tiv e of sev eral in te re s tin g po in ts
of view.
From ail Implement Dealer: “The implement copy in your Madison County cam­
paign hit the nail squarely on the head. We have been preaching this same story for
many years.”
F. P. H ARTSOOK, Winterset.
From a Dry Goods Merchant: “From a merchant’s viewpoint, I am very much im ­
pressed with this type of advertising. I consider it Business Building, both for your
bank and for the other business institutions of our town.”
C H A R LES A. GRAVES, Winterset.
From a Neighboring Banker: “I f this series continues to measure up to the stand­
ard set by your first advertisement, you will be doing a fine thing not only for the
bank, but also fo r all business in Madison County.”
W. G. JA CK SO N , Earlham.
From a Metropolitan Banker: “I am heartily in accord with the suggestion advanced
by your advertísement. County-seat towns should do everything possible to warrant
and encourage the support of people living in their business radius.”
W ILLIA M H. M IL LE R , Chicago.
From a Newspaper Editor: “Your initial advertisement is appealing. In fact, it has
the ear-marks of a very interesting campaign.”
O. E. SM ITH , Spirit Lake.

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Federal Reserve Bank of St. Louis

series of ad v ertisem ents appearing in
N orthw estern B anker , featu rin g “In ­
stitu tio n s T h at Make Iow a.” G radually
the possibilities of applying a sim ilar
idea to our situation began to take root.
Our prim ary field of operations is
M adison County. C ouldn’t an effective
series of advertisem ents be bu ilt
around the business and professional
m en who co ntribute so m uch to th e
developm ent of M adison County? W e
th o u g h t so.
W ith th is basic idea as a sta rtin g
point, we called in the sam e m en w ho
had developed th e “Iowa In stitu tio n s”
ad vertising and asked them w h eth er
we w ere rig h t in our belief. T hey
agreed to see w h at could be done. In
a few w eeks th ey subm itted the cam ­
paign we are now ru n n in g in Madison
County—a cam paign w hich m easures
up exactly to th e specifications we had
long had in m ind as m ost suitable for
the ad v ertisin g of our bank.
T he ad v ertisem en t featu rin g a g ri­
cu ltu ral im plem ent dealers, re p ro ­
duced in connection w ith th is article,
is typical of the en tire series. E ach
ad v ertisem en t is b u ilt around a central
them e—“It pays to do business w ith

17
M adison C ounty business an d p rofes­
sional m en. T he m ore you use them ,
th e b e tte r th e y can serve you.”
T his ce n tra l them e ap p ears in spe­
cial display type a t th e bottom of each
ad v ertisem en t. In addition, the them e
is rep eated in th e te x t of each a d v er­
tise m e n t—co n stan t rep etitio n to drive
hom e a basic point.
In technic, th e ad v ertisem en ts have
been k e p t purp o sely sim ple. E v en th e
ty p e is set by our ow n n ew spapers
h ere in M adison County. In form as
w ell as in w ords, th e ad v ertisin g m en
felt th a t th e ad v ertisem en ts should
n o t ta k e th e c h aracter of fancy “im ­
p o rte d ” m essages, b u t ra th e r should be
a plain, straig h t-fo rw ard expression of
o u r ow n business philosophy.
In th is series, we expect to featu re
each phase of business or professional
activ ity w hich is a m ajo r factor in th e
life an d developm ent of our com m un­
ity. T hese include:
A g ricu ltu ral im plem ents, atto rn ey s,
autom obile dealers, clothing and dry
goods, dentists, d ru g stores, food
stores, fu rn itu re stores, g rain and feed
dealers, h a rd w a re stores, in su ran ce
agents, lu m b er com panies, physicians
and stock buyers.
N ew spapers are th e p rim a ry m e­
dium for th is cam paign, of course. The
series of ad v ertisem en ts, th re e col­
u m ns in w idth, is ap p earin g in both
W in te rse t new spapers. In addition, th e
n ew sp ap er a d v ertisin g is sup p le­
m ented by a series of th re e le tte rs to
th e com plete business and professional
list of M adison County.
We felt certain th a t any local b u si­
ness m an w ould be in terested in h a v ­
ing inside in fo rm atio n ab o u t th e
cam paign, and know ing som ething of
th e philosophy b ehind it. Accordingly,
we m ailed a re p rin t of th e in itial ad ­
v e rtise m e n t to every business and
professional m an in M adison County,
giving info rm atio n about th e cam ­
paign, an d outlin in g th e objectives
w hich o u r b ank had in m ind in spon­
so rin g it.
W ith th e second m ailing to each
nam e on th e list, we enclose a re p rin t
of th e a d v ertisem en t fe a tu rin g his own
line of endeavor. A th ird m ailing piece
w ill be sen t out n e a r th e conclusion
of th e e n tire cam paign.
As yet, it is fa r too early to begin
to talin g th e score on resu lts, because
th e cam paign is still in progress. H ow ­
ever, we have been m ore th a n pleased
w ith th e recognition from leading fig­
u re s in o u r ow n com m unity, as well
as from b an k in g officials elsew here.
W e n a tu ra lly expect frien d s to be po­
lite in th e ir com m ents ab o u t any ad­
v ertising. B ut in th is instance, we find
th a t gen eral com m ent in th e com ­
m u n ity seem s to be u n ifo rm ly e n th u si­
a s tic -c o m m e n t th a t is n o t lim ited to

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Federal Reserve Bank of St. Louis

" /T S A GODSEND YOU HAD THAT BEARING IN ST O C K /

SAVED! a day for the entire crew
because his local implement
dealer was on the j o b . . .
It’s tough luck to have a bearing burn out
shortly before dinner— just w hen threshing
could be finished by sundow n.
The w orried farm er phoned his im plem ent
dealer. W hat to do? “Eat a good din ner,”
said the dealer. “W e’ll be right out.”
In a few m inutes, the service-car w as on
hand w ith a new bearing. By the tim e the
crew had finished eating, the outfit wets ready
to go and the last bundle was pitched right
on schedule.
It pays a farm er to
local im plem ent dealer.
your neighbor, and a
cause in a sense he is
partm ent of your farm

do business w ith
N ot ju st because
good fello w , but
the m aintenance
business.

the
h e ’s
be­
d e­

M achinery is essen tial to m odern farm ing.
In M adison County alone, farm -m achinery
valu e runs w ell above tovo m illion dollars.
So your local dealer helps to keep a tw o-

m illion-d ollar
order

investm ent

in

good

running

By trading w ith your local dealer w hen
you need new equipm ent, you assure your­
self of a convenient source of service and re­
placem ent parts.
The sam e point applies to practically every
lin e of business and professional activity.
By dealing w ith other M adison County m en ,
you increase their ability to be u se fu l to y o u .
By failing to use them at every opportunity,
you m ake it harder for them to m aintain s e r ­
vices w hich you m ight sorely m iss if th e y
w ere not available.
That is a good point to rem em ber. Y o u
need M adison County business and p r o fe s ­
sional m en— and they need your business.
N o 9 in a S61-'68 o)r A dvertisem ents em^ ‘
phasizing the advantages
gamed by dealing w ith Madison t
County business and professional
men at every opportunity.
>S

Office s a t PERU • TRURO

MACKSBURG

It pays to deal with Madison County business and professional men.
The MORE you use them, the BETTER they can serve you.
“ SIM PLE, DIRECT A PP E A L ” —Reproduced above is the second advertise­
ment in the Union State Bank series. As Mr. Huntoon points out, the copy
appeals to the average Madison County reader on a basis of his own specific
self-interest, rather than on general ‘ ‘ trade-at-home ’ ’ patriotism.

our own custom ers b u t comes to us in
le tters and in rem ark s from all p arts
of th e county.
Still m ore im p o rtan t th an com m ents
alone, are indications th a t th e cam ­
paign is achieving its broader objec­
tiv e—focusing a tten tio n on th e im ­
portance, to M adison County, of doing
business w ith our ow n business and
professional people.
As a reading of any of our ad v ertise­
m ents w ill reveal, we have carefully
avoided p resen tin g this appeal sim ply
on a basis of “hom e-county p a trio t­
ism ”. R ather, our m essages are di­
rected to th e re a d e r’s own personal
in te re st—intelligent, self in te re st we

believe—because we feel th a t every
citizen has m uch to gain personally
th ro u g h keeping capable business and
professional services at his com m and
rig h t here in his hom e county.
N aturally, our directors and officers
are hu m an enough to appreciate the
verbal flowers w hich have come our
way. B ut basically we are far m ore in ­
terested in seeing th e cam paign
achieve its m ajor purpose of stre n g th ­
ening th e position of the business and
professional m en of our county. These
m en are th e backbone of our com­
m unity. By helping them , th e cam ­
paign can not fail to help our bank.

How a Verbal Agreement
Affects Installment Payments
Lane, a Minnesota banker, sold an
autom obile in th a t sta te to H ayes, ta k ­
ing a dow n p ay m en t and agreeing th a t
th e rem ain d er of th e pu rch ase price
m ight be paid in installm en ts. As evi­
dence of th e ag reem en t reg ard in g in ­
stallm en t paym ents a conditional sales
con tract w as en tered into by th e tw o
parties. H ayes w as unable to pay th e
second in stallm en t and L ane agreed
verbally th a t th e tim e for its paym ent
w ould be extended tw e n ty days. Be­
fore th e tw e n ty days expired, how ever,
Lane, disreg ard in g his ag reem en t to
extend, repossessed th e car. W as such
action on the p a rt of L ane legal?
¡Vo. After an oral agreement extend­
ing the time for the performance of a
contract for the conditional sale of an
automobile, a vendor must abide there­
by and cannot retake possession of the
property during the period of the ex­
tension w ithout incurring liability for
conversion. This is true w hether or
not the oral agreement for the exten­
sion of time is supported by considera­
tion.
Two officers of a South D akota cor­
poratio n p u rch ased from it certain
shares of stock in th e com pany th a t
previous to th e sale had been held in
its tre a su ry as unissu ed stock. L ater
some of th e stockholders sought to
have th e sale set aside on th e ground
th a t th e officers had not paid an ade­
quate am o u n t therefo r. A t th e trial
w as th e b u rd en of proof on th e tw o
officers to show th a t th e pu rch ase price
w as adequate?
Yes. By reason of the fiduciary rela­
tionship between the officers and the
company the usual rules hinging
around the caveat emptor, let the buy­
er beware attitude of the courts do not
prevail. Where a sale is made by a
corporation to its officers, the burden
is on the officers, if the sale is ques­
tioned, to show that the transaction
was fair, in good faith, and open and
above board.
Hultgren, the cashier of a N ebraska
bank, pu rch ased from it a note p re ­
viously executed in its favor by G rant.
He paid full value th e re fo r and th e
tran sactio n w as e n tire ly free from
frau d bad faith, and u n due advantage.


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These and Other Timely Legal
Questions Are Answered
By the
LEG A L DEPARTM ENT

S hortly th e re a fter the b an k failed.
L a te r G rant refused to pay and H u lt­
g ren sued him . As a defense G rant as­
serted H u ltg ren had bought th e note
w ith know ledge of the im pending fail­
u re of th e bank and to avoid a personal
loss as a depositor th erein. W as the
defense good?
No. If a cashier purchases a note of
his bank, paying full value therefor,
and the transaction is entirely free
from fraud, bad faith, or undue advan­
tage, such transaction cannot be at­
tacked collaterally, as Grant attempted
to do here, by the maker of the note
when suit is brought thereon by the
owner.
Under North Dakota law a chattel
m ortgage, generally speaking, ceases
to be valid as against subsequent p u r­
chasers or incum brancers in good faith
of th e p ro p erty involved a fte r th ree
y ears from th e filing thereof w ith the
reg ister of deeds unless an affidavit
th a t it rem ains unpaid is duly filed
w ith th e reg ister of deeds w ith in 90
days of th e expiration of th e th ree year
period. A situ atio n arose in th a t state
w here th e affidavit w as n o t filed w ith in
th e tim e specified b u t w as filed some
six m onths afte r th e th ree years
passed. Did such affidavit operate to
v alidate the lien ag ain st purch asers
and in cum brancers in good faith?
No. The statutory provisions fixing
the time within which a chattel mort­
gage must be renewed must be strictly
complied with and an attempted re­
newal after time is without effect.
A Nebraska banker died leaving a
farm ow ned by him to his wife for life
w ith th e rem ain d er to his children.
T he w ife th e re a fter ren ted the farm to
a te n a n t for a re n ta l of one-third of
th e crops grow n thereon. Such re n t­
ing w as on a year-to-year basis and th e

te n a n t p lanted w heat and o th er crops
on the land. T he w ife died Ja n u a ry
15, 1937, w hile certain w h eat th a t had
been p lanted th e previous fall w as
grow ing. T he w heat w as not h arv ested
u n til th e n ex t sum m er. Should th e
one-third in te re st in th e w h eat th a t
was harv ested go to th e w ife’s estate
or should it go to th e children, th e re ­
m ainderm en?
The interest in the wheat should go
to the estate rather than to the remain­
dermen. Where a tenant for life of
farm land leases the land, with the rent
payable in a share of the crop, and dies
while the crop is growing, title to the
share of the crop reserved as rent
passes to the estate of the tenant for
life as assets of that estate.
Blackburn executed in favor of
W eiser or his order a negotiable p rom ­
issory note for five th ousand dollars in
W isconsin. W eiser delivered th e note
to M ichaelson, w ith o u t indorsing it,
before m a tu rity for a valuable consid­
eration. L ater B lackburn did n ot pay
and M ichaelson sued him. B lackburn
defended settin g up certain defenses
th a t w ere m atters betw een him and
W eiser. Such defenses w ere of th e
type th a t could not be urged legally if
M ichaelson w as a “holder in due
course.” W as M ichaelson such a hold­
er?
No. Where a note payable to payee
or order is transferred without in­
dorsement the transferee is not a
“holder in due course.” Here Michael­
son received only such title and rights
under the note as Weiser had and held
the note subject to any defenses that
were available to Blackburn against
Weiser by reason of the non-indorse­
ment.
A false check w as cashed by a m an
a t a ban k in Iow a and certain peace
officers im m ediately took steps to ap ­
p rehend him. A m an bearing th e sam e
nam e w as picked up in N ebraska and
charged w ith com m itting th e crim e.
He p ro tested his innocence b u t w en t
w ith th e Iow a officers w hen th ey came
to get him and, as an incident to going
w ith them , did n o t req u ire a form al
extradition. He w as placed in jail in
Iowa and w as released sh o rtly there(T urn to page 34, please)

19

STATEMENT
OF

CONDITION
December

1939

R E SO U R C E S
Loans and D isco u n ts................................................................................................. $15,652,338.16
Overdrafts ......................................................................................................................
1,486.43
U. S. Government O b lig a tio n s.............................................................................. 8,157,805.00
State and M unicipal B o n d s..................................................................................... 5,425,490.73
Other B onds and In v e stm en ts.............................................................................. 3,412,276.89
B anking H ouse ...........................................................................................................
799,000.00
Furniture and F ix tu r e s..............................................................................................
j . qo
Customers L ia b ility Under L etters of C red it................................................
3,430.00
Interest Earned B ut N ot C ollected ......................................................................
148,074.92
Other A ssets .................................................................................................................
49,134.40
Cash on Hand and Due from Federal R eserve Bank and Other
Correspondent Banks .................
20,418,015.09
$54,067,052.62
L IA B IL IT IE S
Common Stock .............................................................................................................$ 1,500,000.00
Preferred Stock ...........................................................................................................
500,000.00
Surplus ....................i ...................................................................................................... 1,500,000.00
U ndivided P r o f it s ........................................................................................................
321,136.22
R eserve for C o n tin gen cies.......................................................................................
162 812.90
R eserve for T axes, Interest, E tc ............................................................................
86,538.97
R eserve for D ividend s D eclared and U n p aid ................................................
30,000.00
Customers L etters of C red it..................................................................................
3,430.00
Interest C ollected But N ot E arn ed......................................................................
32!442.26
D eposits ......................................................................................................................... 49,930,692.27
$54,067,052.62
M em ber Federal D ep osit Insurance Corporation

©

N
Membe r
Federa l Deposit Insurance C orpo ration


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Federal Reserve Bank of St. Louis

20

M id-A m erica Casualty Insurance
Company In Expansion Program

T. W . G A R R E T T , JR.
P resident and Chairman of the Board

H E Mid-America C asualty Com­
p any of Cedar Rapids, Iow a’s new ­
est stock casualty com pany, is m ak ­
ing steady progress in its long range
plan for agency developm ent, and offi­
cials of th e com pany recen tly a n ­
nounced plans for extending th e com ­
p a n y ’s field of operations.
Control of th e Mid-America Cas­
u alty Com pany w as p u rch ased in Ju n e
of th is y e a r by T. W. G arret, Jr., of
K ansas City, M issouri, and associates.
Hom e Offices of th e com pany are on
th e eig h th floor of th e A m erican T ru st
B uilding in Cedar R apids, and th e com ­
pany has recen tly rem odeled and ex­
panded its office space there. E x ecu ­
tive offices of th e com pany are also lo­
cated in K ansas City in th e City B ank
Building, in w hich is located th e G ar­
re tt Agency.
Mr. G arrett, p resid en t and ch airm an
of th e board of Mid-America, is also
head of G arrett, Inc., G eneral A gents
of K ansas City, one of th e o u tstan d in g
general agencies of th e U nited States.
H is background in in su ran ce includes
agency and field w ork p rio r to the
estab lish m en t of th e G a rre tt G eneral
Agency, and he is looked upon as a
leader am ong th e in su ran ce executives
in his field. Mr. G a rre tt is considered
one of th e b est inform ed in su ran ce

T


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officials in the field of finance in su r­
ance. H is agency, w hich is h ead q u ar­
te re d in th e City B ank B uilding in
K ansas City, also m ain tain s service
offices in St. Louis, W ichita and Jo p ­
lin. G arrett, Incorporated, G eneral
A gents, is te rrito ria l m anager for:
B ritish and F oreign M arine In surance
Com pany, Cam den F ire In su ran ce A&sociation, C entral States F ire, C entury
In d em nity Company, E a st and W est
In su ran ce Company, E a ste rn U n d er­
w rite rs Agency, E quitable U n d erw rit­
ers Agency, T he Georgia H om e In s u r­
ance Company, H om estead F ire In s u r­
ance Company, In su ran ce Com pany of
th e S tate of P ennsylvania, Insu ran ce
U n d erw riters, M id-America C asualty
In su ran ce Company, Pacific Coast F ire
In su ran ce Company, P iedm ont F ire
In su ran ce Company, P ro v id en t Life
In su ran ce Company, Sun U n d erw rit­
ers In su ran ce Company, W estern Cas­
u a lty and S u rety Company, and AVestern F ire Insu ran ce Company. The
com pany has been fo rtu n ate in obtain­
ing th e services of its new vice p resi­
d en t and production m anager, H. R.
Hazlewood, w ho is a seasoned C asualty
U n d erw riter and w ho has had wide
experience in agency developm ent.
P rio r to joining th e Mid-America
C asualty, Mr. H azlewood w as general
m an ager of th e N o rth w estern N ational
C asualty Com pany of M ilwaukee, the
ru n n in g m ate of th e N o rth w estern N a­
tio n al In su ran ce Com pany of M ilw au­
kee. He is a native of N o rth Dakota,
b u t w as educated in Canada. Follow ­
ing his schooling he w as connected for
a n u m ber of y ears w ith th e C anadian
Pacific and C anadian N o rth ern R ail­
roads.
Mr. H azelwood th en en tered th e
lum ber business in B ritish Columbia,
a fte r w hich he en tered th e insurance
field as a general agents in B ritish
Colum bia for a casualty com pany. He
la te r w as an agency organizer in w est­
ern Canada for th e Globe Indem nity,
th e n w ith th e Royal E xchange and
D om inion G resham . F o r a sh o rt tim e
he w as a general agent in W innipeg,
and in 1919 he becam e connected w ith
th e N o rth w estern N ational group, first
as a special agent in New Y ork City,
and a y ear la te r as a ssistan t m anager
and m anager of th e autom obile depart-

H. R. H A Z L E W O O D
V ice President

m ent a t th e H om e Office. Mr. Hazlewood’s operations in th e autom obile
d ep artm en t of th e N o rth w estern N a­
tional w ere so successful th a t in 1929
the N o rth w estern N ational Casualty,
w ritin g autom obile in su ran ce only,
w as organized and he becam e g eneral
m anager of th e new com pany. Mr.
H azlewood is m arried and has th re e
children, tw o girls and one boy and
likes Cedar Rapids, his new home.
He has announced th a t M id-America
in a sh o rt tim e w ill en ter a n u m b er of
additional states, including several
m id-w estern states. T he com pany al­
ready has approxim ately 300 agency
connections in th e state of Iow a and is
em barking on a program of long-tim e
developm ent, centerin g first in Iowa,
and later in additional states. T he com­
p any specializes in all form s of au to ­
m obile in su ran ce and w ill confine its
operations to th a t field u n til its capital
and su rp lu s is increased.
The new official line-up of th e MidA m erica includes P resid en t and C hair­
m an G arrett, Vice P resid en t H azle­
wood, S ecretary Chas. S. D unn, Vice
P resid en t Geo. W. Corey, S ecretary
H a rry J. Chadima, T re a su re r D. E.
Yankie, G eneral Counsels B. B. Hickenlooper and M. F. M itvalsky and As­
sociate G eneral Counsel E lm er A.
Johnson.

21

G e t Better Acquainted
W ith Savings and Loan
HAD alw ays ta k e n Savings and
L oan A ssociations m ore or less for
g ran ted . I believe m y ideas on th is
typ e of in stitu tio n follow ed com m on
belief th a t th ese A ssociations held in ­
te re s t m ain ly for those in v esto rs w ho
w ish to accum ulate savings th ro u g h
th e in sta llm e n t m ethod, d esired a
relativ ely h ig h r e tu rn on th e ir in v est­
m en t an d in tu r n had little need in a
m a rk e t for th e ir in v estm en t. T he p as­
sage of th e F ed eral H om e Loan B ank
A ct in 1932, an d la te r th e H om e Own­
e rs ’ L oan Act an d th e N ational H ous­
ing Act, focused a g re a t deal of a tte n ­
tion on th is o u tlet as a m edium for
in v e sto rs’ funds.
I took tim e out to do a little explor­
ing and th e re su lts w ere v ery in te re st­
ing to m e. T he Savings and L oan b u si­
ness c ertain ly has not been drydocked d u rin g th e last seven years.
R ath er, th is field of in v estm en t has
been b risk ly p rogressive in m ethods,
m an ag em en t and publicity.
D uring
th is period legislation has likew ise
k ep t pace.
A dditional legislation b earin g on
Savings and L oan A ssociations is ex­
pected to come before Congress in th e
n ex t session. T he proposed am end­
m en ts seem ed designed to liberalize
existin g law s an d to give g re a te r flexi­
b ility to th is b ra n c h of o u r financial
S3rstem . It is m y belief th a t th e tre n d
in th is established field of in v estm en t
is sufficiently definite and th e p ro b ­
lem s involved so im p o rta n t th a t every
type in v esto r should give sober
th o u g h t and endeavor to u n d e rsta n d
operation of Savings and L oan Asso­
ciations.
F ra n k W. H ancock, m em ber of th e
F ed eral H om e L oan B ank Board, has
presen ted an in te re stin g and th o ro u g h
analysis of H.R. 6971, a Bill by Mr.
Steagall to am end th e F ed eral Hom e
L oan B ank Act, H om e O w ners’ L oan
Act of 1933 and th e T itle IV of th e
N ational H ousing Act. T he rev iew by
Mr. H ancock is as follows:
“Sections 1 and 2 am end Section 10
of th e F ed eral H om e Loan B ank Act
so as to give th e F ed eral H om e Loan
B anks som ew hat g re a te r flexibility in
lending to th e ir m em bers in som ew hat
th e sam e m a n n e r th a t th e F ed eral R e­
serve B anks w ere given g re a te r flexi­
b ility in dealing w ith m em ber b anks
in 1933. T he p re se n t law lim its th e
bank s to m ak in g loans on home m ort-

I


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

By J . C . Enyart

this g re a te r flexibility in m aking loans
and tak in g collateral security.
Investment Counselor
“Section 3 am ends Section 11 of the
Des Moines
B ank Act so as to au th orize th e Secre­
ta ry of th e T reasury, in his discretion,
to purchase th e obligations of the
F ederal H om e Loan B anks and of F ed­
gages and G overnm ent obligations.
eral Savings and L oan Insu ran ce Cor­
As am ended, th e banks w ill be able to
poration. S u b stan tially th e sam e lan­
lend 90% of th e un p aid p rincipal on
in su red hom e m ortgages, 65% on non­ guage is used as th e language w hich
authorizes him to support, if neces­
in su red am ortized hom e m ortgages,
sary, F a rm C redit A d m inistration by
an d 50% on o th er m ortgages on prop­
erties designed principally for resid en ­ purchase of securities of F ed eral F arm
M ortgage C orporation or to su p p o rt
tial use. The p resen t law lim its bank
th e F. D. I. C. or th e R. F. C. by p u r­
chase of th e ir obligations.
“Section 4 am ends Section 17 of th e
F ed eral H om e Loan B ank Act to au ­
thorize th e B oard to enforce its rights,
pow ers, orders, ru les and regulations,
in th e Courts, th ro u g h th e A ttorney
G eneral or th ro u g h its ow n attorneys,
at his direction, and gives th e C ourts
ju risdiction in such m atters.
“Section 5 am ends Section 20 of said
Act to req u ire exam ination of F ederal
Hom e L oan B anks once a y ear and
not tw ice, as is req u ired u n d er th e
p resen t law, and gives th e F ed eral
H om e Loan B ank Board pow er to re ­
quire rep o rts of all m em bers of th e
B ank System and to exam ine and su­
pervise F ed eral and in su red S tate
associations, and to exam ine non-in­
sured S tate-charted m em bers in th e
event th ey have no adequate S tate
exam ination and clarifies the existing
law by giving th e B oard express pow er
J. c. E N Y A R T
to assess th e cost against th e in stitu ­
lending to 20-year m ortgages, b u t this tions dealt w ith.
am en dm ent w ould authorize loans on
“Section 6 am ends Section 21 of said
th e new 25-year m ortgages and also Act, and is a crim inal section. I t p ro ­
w ould authorize loans on o th er obliga­ vides su b stan tially th e sam e protection
tions w hich a m em ber m ight have
for th e F ederal Hom e L oan B ank
available and w hich are acceptable to System , th e Insu ran ce C orporation,
th e F ed eral H om e L oan B ank Board. and th e m em bers, th a t is now pro­
No m ortgage w ill be eligible if it ex­ vided by law for th e F ed eral R eserve
ceeds $100,000 a t th e tim e th e advance
System , th e F. D. I. C., and th e ir m em ­
is made.
bers. I t p rohibits and provides p u n ish ­
“The purpose of th e F ed eral Home m en t for certain frauds and w rongs
L oan B anks is to m ake funds available ag ain st any of these in stitu tio n s, in ­
to m em ber in stitu tio n s in th e ir local cluding a defam ation section, and p ro ­
com m unities w hen such funds are tects th e in stitu tio n exam ined by pro­
needed for local loans or to m eet a h ibiting exam iners from revealing in ­
situ atio n of local financial distress. form ation obtained.
T hese banks have loaned about five
“Section 7 am ends Section 4 (c) of
h u n d red m illion dollars for these p u r­ Home O w ners’ L oan Act of 1933 so as
poses w ith o u t any losses w hatsoever. to exem pt th e office building in th e
I t ap pears to be w ise to m ake them
D istrict of Columbia from taxation, as
m ost serviceable to local m em bers and o th er
G overnm ent buildings are
in solving a local situ atio n to p erm it exem pt.

22
loans shall be am ortized in “not to ex­
ceed fifteen years,” an d su b stitu tin g
th e w ord “tw enty-five.”
“The purpose of th is am endm ent is
sim ply to m ake it clear th a t th e Home
O w ners’ Loan C orporation has p erm is­
sive pow er to extend H. O. L. C. loans
beyond th e original m axim um period
of fifteen years.
“Section 8 am ends Section 5 (c) of
said A ct dealing w ith F ed eral savings
and loan associations. T he p resen t law
lim its F ederal associations to real es­
ta te loans upon local homes, except
th a t 15% of th e ir assets m ay be loaned
on o th er im proved real estate. T his
am en dm ent w ould p erm it th e larger

“T he original Act subjected real
estate held by Hom e O w ners’ L oan
C orporation to taxation. T h ere is some
question as to w h e th e r th is applies to
its office building in th e D istrict. The
C orporation pays re g u la r local taxes
as any o th er p ro p e rty ow ner to th e
D istrict of Colum bia and th e States,
Counties an d M unicipalities upon all
of th e hom es acquired by it. The p u r­
pose of th is provision is to p u t its hom e
office building clearly on th e sam e tax
basis as o th er G overnm ent p ro p e rty
in W ashington.
“Section 7 also am ends Section 4 (d)
of said Act by strik in g th e w ord “fif­
te e n ” in the provision th a t H. O. L. C.

other industries h a v e exp an d ed , so the
Drovers Banks h a v e grow n with Chi­
cago.

IN 1 8 8 2 , the first cab le cars started
operation in C hicago— sp eed in g trans­
portation far b eyon d the limits of the old
horse drawn street cars. Two y ea rs
later, the rapidly exp an d ing Cable S y s­
tem w a s transporting a million peop le
d aily and doing the work of 2500 horses.
IN 1 8 8 2 , the Drovers National Bank
w a s esta b lish ed to serve the Live
Stock Industry. W ithin a few y ears
hundreds of correspondent banks w ere
using Drovers Service and the flow of
live stock items over the Drovers coun­
ters h ad reach ed box car figures. Just
a s transportation facilities and m any

T O D A Y , the Drovers Banks are located
at the hub of a b u sy circle. The Union
Stock Yards; a hundred or more n a ­
tionally-know n m anufacturing concerns;
a major shopping center and a tre­
m endous residential section— all radiate
from the b u sy five-corners w here the
Drovers Bank Building is situated.
M I D W E S T E R N B A N K E R S find in
Drovers S ervice, the long experience
and w id e contacts that build satisfac­
tory correspondent relationships.

M em ber, F ed era l D e p o sit Insurance C orporation

DROVERS NATIONAL BANK
DROVERS TRUST & SAVINGS BANK
UNION

Northwestern Banker

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

STOCK

Januarij 19k0

YARDS,

CHI CAGO

associations, u n d er regulations m ade
by th e F ed eral Hom e Loan B ank
Board, to lend an additional 15% of
th e ir assets upon ap a rtm e n t houses.
Also it w ould authorize F ederal asso­
ciations to in v est in G overnm ent g u a r­
anteed obligations and certain o th er
obligations w hich are legal in v est­
m ents for fiduciary and tru s t funds,
and are approved by reg ulation of th e
Board. Also it w ould authorize them
to m ake Title I F. H. A. loans.
“Section 9 am ends Section 5 (i) of
said Act dealing w ith th e conversion
of associations from State to Federal.
It recognizes a recen t decision of the
Suprem e C ourt by providing th a t the
conversion shall n ot be in co n trav en ­
tion of State law. It also authorizes
conversion of a F ederal association
into a State association.
“Section 10, 11, 12, 13, 14, 15, and 16
am end T itle IV of th e N ational H ous­
ing Act affecting F ed eral Savings and
L oan In su ran ce C orporation, and Sec­
tion 17 is a separability clause. The
am endm ents of th e In su ran ce S tatu te
are largely technical, redefining “in ­
su red account” b u t m aking no sub­
stan tial change, and changing th e
nam e of th e In su ran ce C orporation
from F ederal Savings and Loan In s u r­
ance C orporation to F ed eral Savings
In su ran ce C orporation because th e
C orporation does not in su re loans and
th e nam e is confusing. Section 12 clari­
fies th e dividend basis of th e Insu ran ce
C orporation, req u irin g it to build up
reserves to 5% of its in su red liability
and providing for dividends th e re a fter
at th e ra te equivalent to th a t c u rre n tly
paid by th e G overnm ent on its long
term bonds. Section 13 reduces th e in ­
surance rate from Vs of 1% to 1/12
of 1%. Section 14 revises th e basis of
in su ran ce settlem ent, m aking it con­
form m ore n early to th a t of th e F. D. I.
C. Section 15 clarifies th e language au ­
thorizing th e In su ran ce C orporation to
deal w ith an in stitu tio n in trouble or
in default. Section 16 clarifies th e lan ­
guage for v o lu n tary or in v o lu n tary
term in atio n of insurance, req u ires à
tw o-year prem ium upon te rm in atio n
and provides th a t accounts shall re ­
m ain in su red for such period.
“T he m ajor question in th e am end­
m en t of th e In su ran ce S tatu te is th e
reduction of th e insurance prem ium
rate. The In su ran ce C orporation a t
p resen t is spending, for total expenses,
approxim ately 10% of its prem ium in ­
come. Its total losses since organiza­
tion in 1934 have been approxim ately
2% of prem ium income. It seem s p e r­
fectly clear th a t th e low er p rem ium
ra te can be justified. T his w ill give th e
In su ran ce C orporation th e sam e p re ­
m ium ra te as th e F. D. I. C., except
th a t th is In su ran ce C orporation col(T u rn to page 28, please)

W hat Happens W hen
A n Assured Dies
N E of th e problem s co n stan tly
co n fro n tin g a gen eral line agent
is th e problem of th e d eath of
his assureds. A re you m eeting th e
problem or are you ju s t sittin g tig h t
and hoping for th e best? The an sw er
to th is question determ in es w h e th e r or
not you are p ro p erly servicing th e risk.
O ur experience in th e tr u s t d e p a rt­
m en t of a b an k engaged in th e m anage­
m e n t of estates and tru s ts indicates
th a t all too often th e in su ran ce agent
is neglecting a golden o p p o rtu n ity to
re n d e r a fine service in failing to m eet
th is problem squarely.
As to som e form s of insuran ce, p e r­
sonal in n atu re, such as accident and
h ealth insurance, th e d eath of th e in ­
su red te rm in a te s th e coverage and th e
ag e n t’s resp o n sib ility ceases except as
to a p ending claim or a possible refu n d
of a p rem iu m th ro u g h cancellation of
th e policy. As to th e o th er form s of
insurance, how ever, a definite resp o n ­
sib ility exists on th e p a rt of th e ag en t
to see th a t th e coverage is continued
and policies p ro p erly endorsed.
S tan d ard form s of residence and
gen eral liab ility policies, for exam ple,
in case of th e d eath of th e insured,
cover th e p ersonal re p re se n ta tiv e of
the deceased, if th e com pany is notified
w ith in 30 days of death. A re you care­
ful to see th a t such notice is given or
do you depend upon th e a tto rn e y for
th e estate to do this?
B ear in m ind th a t u su ally no ad m in ­
istra to r or execu to r is appointed by
th e co u rt w ith in 30 days of death. B ear
in m ind too th a t, according to law,
title to th e real estate, su b ject to claim s
of creditors, v ests in th e h eirs or de­
visees, as of date of death. In m an y
cases, such policies should be im m e­
diately endorsed to cover such h eirs or
devisees an d th e estate of th e deceased.
Y our failu re to have such en dorsem ent
attached, m ig h t prove em b arrassin g in
th e ev en t a su it for in ju rie s w ere filed
ag ain st a w idow or child and th e policy

O

Auto, fire and th e ft policies are not
voided by death of th e insured, b u t
Trust Department
should be endorsed to cover the estate,
Omaha National Bank
pending sale or o th er disposition of
Omaha, Nebraska
th e car.
A uto liability and p ro p erty dam age
policies u sually contain a provision re ­
qu irin g w ritte n notice w ith in 30 days
did not cover th e liability of such p e r­ of death to cover:
son.
(a) The legal rep resen tativ e.
If the p ro p erty is being looked afte r
(b) P erson having custody p rio r to
and re n ts collected by th e ad m in istra­ appointm ent of such rep resentative.
to r or executor, th e policy should also
T his notice should be given im m e­
be endorsed to cover th e personal re p ­ diately and as soon as the ad m in istra­
rese n tativ e as soon as th e appointm ent to r or executor is appointed—th e nam e
has been made.
of such personal rep resen tativ e should
Residence, b u rg lary and com bination be endorsed on th e policy.
rob b ery policies cover th e executor
Policy form s are m ore or less stan d ­
or a d m in istrato r of th e deceased if the ardized, b u t all policies are not the
com pany is notified w ith in 30 days of sam e so this m u st be considered in de­
th e death. Notice of death should be term in in g th e steps to take.
given im m ediately and pending ap ­
R em em ber th is—a t th e death of an
p o in tm ent of such personal re p re se n ta ­ insured, questions w ill arise as to cov­
tive, th e policy should be endorsed to erage. Fam iliarize yourself w ith the
cover the estate of th e deceased.
various policy provisions governing
F ire policies define th e in su red as in ­ th is situ atio n and take p roper steps to
cluding th e legal rep resen tativ e of the pro tect th e in terests of th e estate, h eirs
deceased if notified w ith in 30 days. or devisee and personal re p re se n ta ­
H ere again we should bear in m ind tives. If you w rite all of the deceased’s
th a t title to real estate vests in th e insu ran ce th is effort m ay re su lt in your
h eirs and devisees as of th e date of holding th e line. If you only w rite a
death, subject only to claim s of credi­ p art, it m ay m ean new business. Con­
tors. T he personal rep resen tativ e has su lt w ith th e a tto rn ey for th e estate
no title to th e p ro p erty and th e policies and th e personal rep resen tativ e of the
should be endorsed to cover th e estate deceased.
of th e deceased, pending d eterm in atio n
as to the nam es of th e heirs or devisees.
As soon as possible th e a tto rn e y for A New Bail Bond
A new bail bond coverage has re ­
th e estate should be consulted as to the
cently been introduced by th e M utual
p ro p er endorsem ents to be attached.
F ire policies covering th e personal S urety Com pany of Iow a u n d er th e
p ro p erty contain th e sam e provision as title of A utoist’s Bail Bond.
T he bond covers m isdem eanors a ris­
to notice. In th e case of personal prop­
erty, how ever, title w ill v est in th e p er­ ing from traffic violations and provides
sonal rep resen tativ e w hen appointed. for bail in am ounts up to and includ­
Such policies should be endorsed to ing $1,000. I t is executed in blank for
cover the estate im m ediately and w hen th e benefit of th e holder w ho m ay com­
ap p o in tm en t of th e a d m in istrato r or plete th e necessary details if called
executor has been made, endorsed to upon to fu rn ish bail.
P rio r to th e in tro d u ctio n of th e A uto­
cover such personal rep resen tativ e.
is t’s Bail Bond, appearance bonds w ere
available to traffic violators only after
a professional bondsm an or a qualified
in su ran ce agent could be contacted.
T he A u to ist’s Bail Bond is so arran g ed
th a t th e in su red m ay carry it in his
car and use it a t any tim e w ith o u t con­
tactin g a bondsm an or su rety com pany
rep resen tativ e.

By A . J . Rhodes

You Can Render Service

and Morite New Coverage

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

24
C orporate su reties are au th o rized to tu a l In su ran ce A ssociation of Mt.
issue bail bonds by C hapter 215 of th e P leasant, Iowa, th e M onarch M utual
law s adopted by th e 47th G eneral As­ In su ran ce A ssociation of Cedar Rapids,
sem bly. P rio r to th is tim e only p e r­ Iowa, th e Policyholders M utual Cas­
sonal bondsm en w ere qualified to ex­ u alty Com pany of Des Moines, Iowa,
and th e P rogressive M utual Insu ran ce
ecute bail bonds.
The A u to ist’s Bail Bond in corporates A ssociation of W aterloo, Iowa.
th e Iow a official form set fo rth in sec­
tion 13612 of th e 1935 Code of Iowa.

T he M utual S urety Com pany of
Iow a is an Iow a com pany duly li­
censed by the Iow a Insu ran ce D epart­
m ent. T heir service should be of g reat
value to th e peace officers in obtaining
adequate bail bond coverage from tra f­
fic violators.

N EW S A N D V IEW S
(C ontinued from page 14)

p re se n t out of th e 2,500 em ployes of the
bank. Of these, 355 had been w ith the
b an k for 25 years or longer and in ­
cluded 335 m en and 20 wom en.
H. C. Priester, p resid en t of P riester
and Company, D avenport, has one of
th e b est collections of pipes in his
office of any in v estm en t b an k er in the
“Q uad” Cities—and he uses them all!
Will A. Lane, presid en t of th e Secu­
rity S tate B ank of M arshalltow n, Iowa,
has been appointed a m em ber of the
B oard of R egents of the G raduate
School of B anking at R u tgers for th e
th ree-year te rm ending in 1942.
Mr. Lane has a fine background of
b an k ing experience w hich ably quali­
fies him for th is position on th e Board.
R U S S E L L F. L U N D Y
President, M utual Surety Co.

Section 1071 of th e 1935 Code of Iow a
req u ires public officials passing upon
bonds to accept th e bond of an y com ­
pany licensed to do b u siness in Iowa.
A t th e p re se n t tim e th e A u to ist’s Bail
Bond is available exclusively th ro u g h
th e facilities of th e C entral S tates Mu­

C. R. Musser, p resid en t of th e M us­
catine B ank & T ru st Company, w as
given a T estim onial B reak fast recently
by th e Saddle and Sirloin Club of Chi­
cago for his services to th e H ereford
In d u stry .
Dean H. H. Kildee of Ames p resen ted
a p o rtra it of Mr. M usser w hich w as
accepted for th e Saddle and Sirloin
Club by B. H. Heide.

TO IOWA INSURANCE AGENTS
The Progressive M utual provides S tandard
Policies, unexcelled Claim Service, $1,000
Bail Bond with all Liability Policies an d a n
organization with which you will enjoy
doing business.

Fred A. Irish, P resid en t of th e F irs t
N ational B ank & T ru st Com pany of
Fargo, N o rth Dakota, and T re a su re r
of th e G reater N orth D akota Associa­
tion, sen t us his usual C hristm as G reet­
ing, in th e form of a ja r of N o rth
D akota sw eet clover honey th a n w hich
th e re is none b etter. F red has all the
bees in N o rth D akota w orking for him.
Carl N. Stutz, secretary of th e W hitePhillips C orporation of D avenport,
w en t duck h u n tin g recently and fell
in th e lake w hen his duck boat tu rn e d
over. T he only ill effect w as a bad cold,
b u t he got his ducks.
Alvin Johnson, p resid en t of th e Live
Stock N ational B ank of Omaha, w as
ch airm an of th e C om m unity C hest
drive in his city th is year, and th e
quota w as $553,417.00 and it w as th e
first tim e since 1931 th a t th e budget
w as reached and passed.
Only five tim es in th e h isto ry of th e
C om m unity Chest D rive has th e goal
been passed and Alvin received con­
g ratu latio n s from th e en tire com m u­
n ity for his fine leadership.
David H. Reimers, p resid en t of the
------------------------------------ ------------------

BANK INSURANCE
AGENCIES
INVITED
M odern, attractive p o licies to
su it the n eed s o f you r cu s­
tom ers.
fo r

L iberal

in su ra n ce

b an k s.

fra n ch ises
agen cies

in

T w o reason s w hy you

sh o u ld w rite fo r th e in terest­
in g plan offered by the

W rite for particulars

Progressive Mutual Insurance Association
R. S. EICKELBERG, President.
W ATERLOO, IOWA

FARMERS
UNION L IF E
Insurance Co.
Home Office, Des Moines, Iowa

Northwestern Banker


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

January 19W

Sell me a copy of
“E V E R YM A N M /S O W N DOCTOR

HE layman can get a lot of miscellaneous infor­
mation out of a medical handbook for a couple
of dollars. But applying it to his own needs leads to
remarkable results, too often tragic, as every physician
knows all too well. Amateur dosing has given many a
surgeon a desperate last-minute problem in appendec­
tomy, to mention a well known field of amateur error.

T

T hat is why the experienced professional man who
devotes his life to the specialized problems of his prac­
tice turns to other specialists for advice and counsel.
He knows th at the guidance of the experienced agent
or broker in the complex insurance field will give him
complete, economical coverage against personal and
business hazards. He does not just ask for ‘‘$50 w orth
of insurance, please” . No worries about uncovered
risks or lapsed policies th at m ight wreck the result of
years of effort.
*

*

own special field. And because we believe in the mid­
dleman’s function and services, we refuse to accept
business direct because it is not in the interests of the
company or the assured to do so. When you buy
National Surety Fidelity Bonds, Surety Bonds, Bur­
glary or Forgery Insurance through your local insur­
ance agent or broker, you deal w ith a customer and
friend who is a fellow member and supporter of the
American Business System.

• This is a r e p r in t o f a n a d v e r t is e m e n t of d
sto c k in s u r a n c e c o m p a n y d ire c te d to th e m e m ­
b e r s o f th e m e d ic a l p ro fe ssio n in y o u r city .
The c o m m e r c ia l b a n k , lik e th e d o c to r, r e n d e r s
a n in d is p e n s a b le s e r v ic e . Its c u sto m e rs a n d its
d ire c to rs a r e c h ie fly in d e p e n d e n t b u sin e ss m en —

*

Like the physician, the insurance agent or broker is
a middleman, rendering indispensable service in his

r e p r e s e n t a t iv e of th e A m e ric a n B u sin e ss S y s te m .

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


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

26
Live Stock N ational B ank of Chicago
said M erry C hristm as to us w ith one
of th e A rm our and C om pany’s blue
ribbon steaks w hich you could cut
w ith y o u r fork and w hich m elted in
your m outh. It w as delicious, d elight­
ful and delectable.

YOUR PLANS
W hat h a p p en ed to th ose m arvelou s
p la n s and grand reso lu tio n s you
m ad e fo r 1 9 3 9 ?
D id th ey w ork
out to y o u r ad vantage, or w ere
th ere tim es in you r b u sin ess w hen
you w ish ed y ou had a p rofitab le
in su ra n ce con tract w ith a C om pany
w ho co u ld h a n d le you r w h o le lin e?
W estern M utual is Iow a’s m ost
p r o g ressiv e
in su ran ce
com p an y
and is n ow rep resen ted by scores o f
y ou r b a n k er fr ien d s.

Now It's 1940
N ow it’s a n o th er year and tim e to
m ak e new p la n s and new re so lu ­
tio n s. A W estern M utual contract
w ill h elp m a k e 1 9 4 0 a m ost p ro fit­
able year.
O ur rates are co m p etitiv e.
O ur p o lic ie s are n on -assessab le.
O ur reserves m ore than re­
q u ired .
O ur c o m m issio n scale h ig h .
W e w rite fire, w in d storm and allied
lin e s in c lu d in g su p p lem en ta l cov­
erages as w ell as plate glass and all
a u to m o b ile and truck coverages.
Y ou r in q u iry w ill receive ou r im ­
m ed ia te atten tion .

"Safety and Service with Savings"

L

W ESTERN MUTUAL
FIRE INSURANCE
cS ( jy n p c u n n

D E S M O IN E S ,IO W A

Oscar F. Meredith, vice presid en t of
th e F irs t N ational B ank of Chicago,
at th e th irty -eig h th an n u al m eeting of
th e Iow a-N ebraska C anners Associa­
tion a t Des Moines, w hen speaking of
b an k cooperation w ith sm all in d u stries
said: “You m ay th ink, as so m any
people do, th a t banks as large as ours,
w hich is th e sixth or seventh largest
in th e country, do not share th e prob­
lem s of th e sm aller business. If you
do, you m ay be in terested in th e fact
th a t of th e to tal n um ber of loans in
m y division IIV 2 p er cent are in
am ounts of $50,000 or less.”
B ranch banking, according to some
authorities, is alw ays perfect no m at­
te r w here it operates, b u t y e t th e Bel­
gian banks Credit Anversois and its
138 branches w ere ordered closed afte r
th e a rre st of Max Stevens and Joseph
Plaes, tru stees, on charges of em bezzle­
m ent.
John J. Anton, vice presid en t of th e
F irs t N ational B ank of Chicago, in a
recen t com m unication to us said, “The
N orthw estern B anker has, in m y ju d g ­
m ent, perform ed an excellent service
to th e Middle W est. Beyond this, it
has been m y ju d g m en t th a t yo u rs is
the o u tstanding m edium of its k ind.”
“B reast of C onsort Chicken, Stuffed
a la K iev” a t th e Yar, plus an evening
a t th e In te rn a tio n a l Live Stock E xpo­
sition, w ith Norman B. Shaffer, and
Carl I. Johnson, second vice p resid en ts
of th e C ontinental Illinois N ational
B ank & T ru st Com pany of Chicago as
yo u r hosts, and you have had a de­
lightful evening. If you have n ever
seen a sheep sh earing contest, an d th e
cham pion shepard dog of th e w orld,
h erd a stran g e flock of sheep into a
coral, you have really m issed som e­
thing. Am ong o ther guests included
in th is delightful evening w ere Byron
L. McKee, cashier of th e M uscatine
B ank & T ru st Company, of M uscatine,
Iowa; Ralph Eastburn, executive vice
presid en t of th e Iow a State B ank &
T ru st Com pany of Fairfield, Iowa, and
A. H. Gerdeman, executive vice p res­
id en t Las Vegas Savings Bank, New
' Mexico.
Leo Crowley, chairm an of th e F ed ­
eral D eposit In su ran ce C orporation,
has accepted th e position as ch airm an

Northwestern Banker

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

January 19k0

27
T h i s is N w N L ’s 5 5 th
A n n u al F in a n c ia l S ta te ­
m e n t a d v e rtis e m e n t, ap ­
p e a rin g in le a d in g news­
p a p e rs (issues of J a n . 2, 3,
or 4) an d in T im e m ag­
azine, o u t J a n . 11.

A REPORT
and a PROMISE

A

Y E A R has ended, and another begun. In
our country, blessed w ith peace, we have con­
tinued about our daily work. P a rt of th e fruits
of th a t work have been placed, as in p ast years,
in th e hands of th e American life i n s u r a n c e
companies, who are custodians of a large share of
th e personal security of 64 million policyholders
and th eir beneficiaries. T he care w ith which these
funds are invested has m ade th e words “ life
insurance” synonym ous w ith “ security.” N o rth ­
western N ational Life subm its its 55th Annual
Financial S tatem ent herew ith. As in p ast years,
this is the first com plete and final life insurance
balance sheet to be published. Ask your banker, or
some other qualified person, to give you his opin­
ion of th e intrinsic soundness of this C om pany’s
investm ent m ethods and m anagem ent practices.
Now, as to the future. Because a life insurance
com pany m ust plan not for m onths or years, b u t
for generations, N WN L will continue to manage
its resources w ith the utm ost care and conserva­
tism . B u t to adm inister a life com pany in the best
in terest of its policyholders requires more th an
financial conservatism , im portant as th a t is. I t

requires diligence and vigor in seeking out, through
research, new ways to serve th e policyholder b etter
and a t less cost, and to help him conserve his most
im p o rtan t asset, his life insurance. I t requires an
open mind, willing to accept the facts disclosed
by research, and to shape its course accordingly.
N WN L accepts these requirem ents and lives up
to them . In 1939, for example, N WN L pioneered
by developing entirely new principles underlying
agents’ com pensation, in keeping w ith to d ay ’s en­
lightened conception of the life agent’s function.
By paying its agents rewards appropriate to the
type of service the m odern life agent is equipped
and trained to give his policyholders, N WN L has
pointed the way to decreased losses— to policy­
holder and com pany alike—from lapsed policies,
and to an ultim ate reduction in th e cost of
insurance to the public.
For the future, N WN L pledges continued allegiance
to these two principles: in th e care and m anage­
m ent of resources, the utm ost caution and
conservatism ; in th e search for ways to m ake life
insurance more economical and more useful, th e
utm ost in progressiveness and open-mindedness.

FINANCIAL STATEM ENT
December 31, 1989
RESO URCES
C a s h ....................................................................................
U . S. G o v e rn m e n t S e c u ritie s ....................................
B onds F u lly G u a ra n te e d b y th e U . S.....................
C a n a d ia n G o v e rn m e n t S e c u ritie s ...........................
O th e r B onds:
S ta te , C o u n ty , a n d M u n ic ip a l............................
R a ilro a d M o rtg a g e B o n d s .....................................
R a ilro a d E q u ip m e n ts ..............................................
P u b lic U tility ..............................................................
I n d u s tr ia l......................................................................
M is c e lla n e o u s .............................................................
F ir s t M o rtg ag e L o a n s ..................................................
P o lic y L o a n s ....................................................................
R ea l E s ta te (In clu d in g H o m e Office B ldg, a n d
R e a l E s ta te Sold U n d e r C o n t r a c t ) ...................
P re m iu m s, D u e a n d D e fe rre d ..................................
I n te r e s t D u e a n d A ccrued a n d O th e r A ssets. . .
T O T A L ..................................................................

( 6 .9 % )
(25.2% )
( 7 .1 % )
(

-6% )

$ 4,474,631
18,989,077
5,324,536
443,403

( -3% )
( 9 .7 % )
(12.7% )

3,067,613
4,806,546
1,087,659
12,902,987
1,483,869
218,834
7,292,650
9,565,148

( 3 .8 % )
( 2 .7 % )
( .9 % )

2,882,675
2,009,826
655,726

(100% )

$75,205,180

( 4-1%)
( 64% )

( 14% )

(17.2% )

( 2 .0 % )

Insurance in Force................. $440,570,713

L IA B IL IT IE S
R eserv e on P o lic ies....................................................................................$58,299,646
D e a th C laim s D u e a n d U n p a id ...........................................................
N one
C laim s R e p o rte d b u t P ro o fs n o t R e c e iv e d .....................................
158,955
R eserv e fo r C laim s U n r e p o r te d ...........................................................
115,000
P re s e n t V alu e of D e a th , D isa b ility , a n d O th er
C laim s P a y a b le in I n s ta lm e n ts .......................................................
4,278,366
P rem iu m s a n d I n te r e s t P a id in A d v a n c e ........................................
343,384
R eserv e fo r T a x es P a y a b le in 1 9 4 0 ....................................................
296,115
P ro fits fo r D is trib u tio n to P o lic y h o ld e rs......................................... 2,780,703
R eserv e fo r O th e r L ia b ilitie s ................................................................. 2,556,674
A sset F lu c tu a tio n R e s e rv e .....................................................................
918,419

Surplus Funds and Capital:
V o lu n ta ry C o n tin g en cy R e s e rv e s ...............................$1,914,431
G en eral S u rp lu s ................................................................ 2,443,487
P a id -in C a p ita l................................................................... 1,100,000 5,457,918
T O T A L ............................................................................................. $75,205,180
W ith s u b s ta n tia lly th e sam e vo lu m e of new b u sin ess as in 1938, N wN L ’s 1
1939 g ain in in su ran c e in force w as 6 0 % g re a te r th a n in 1938.
f

Northwestern National Life

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

INSURANCE

COMPANY

O. J. Arnold, President

Minneapolis, Minn.

28
of th e board of th e S tan d ard Gas and
E lectric Company, b u t w ill rem ain
w ith th e FD IC for several m o n th s to
clean up some problem s w h ich still
need to be settled.
The S tan d ard Gas and E lectric is th e
u tility holding com pany w hich in ­
cludes system s in 20 states and Mexico.

James E. Hamilton, chairm an of the
board of th e M erchants N ational B ank
of Cedar R apids, Iowa, and Mrs. H am ­
ilton left recen tly for th e ir an n u al
cruise in F lorida w aters. F o r th e bene­
fit of th e ir m any N orthw estern B anker
friends th e ir h ead q u arters w ill be
Y acht Sea L ark, Flam ingo H otel, Mia­
m i Beach, Florida.

Stephen H. Fifield, a ssista n t vice
presid en t of th e B a rn e tt N ational B ank
of Jacksonville, F lorida, and p resid en t
of th e F in an cial A dv ertisers Associa­
tion, sen t us a holiday g reetin g th a t
w as really w o rth w h ile in th e form of a
crate of F lo rid a oranges and g rap e­
fru it. In o th er w ords—half and half.

Officers of th e Live Stock National
Bank of Omaha have full rig h t to be
v ery proud of th e ir D ecem ber 30th
sta te m en t figures ju s t released. De­
posits are now $14,771,875. T his com­
pares w ith a to tal of $4,910,106 ju st six
y ears ago, in 1933. C ongratulations

A U T O I S T BAIL BOND
Covering M isdem eanors Arising From Traffic
Violations

NOW AVAILABLE
IOW A OFFICIAL FORM

Section 13612 Code of Iowa
CORPORATE SURETIES AUTHORIZED

47 G eneral Assembly C hapter 215
BOND MUST BE ACCEPTED

Section 1071 Code of Iowa

This Protection is A vailable Exclusively Through
the Facilities of
CENTRAL STATES MUTUAL INSURANCE ASS'N
Mount P leasant, Iow a
MONARCH MUTUAL INSURANCE ASS'N
C edar R apids, Iow a
POLICYHOLDERS MUTUAL CASUALTY CO.
Des M oines, Iow a
PROGRESSIVE MUTUAL INSURANCE ASS'N
W aterloo, Iow a

Introduced By

rnuTUDL suRETv compnnvoFiouin
Iow a’s Own C om pany
D E S M O INES, IOW A

Northwestern Banker

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

January 19JO

also to President Alvin E. Johnson
and his efficient associates for th e ir
co n stan t increase in loans and dis­
counts, w hich are now $6,773,655, com­
pared w ith $1,566,262, in 1933. T his
should answ er th e question “are
banks tak in g care of th e ir custom ers’
borrow ing needs?”

BETTER A C Q U A IN T E D
W ITH SA V IN G S
A N D LO A N
(C ontinued from page 22)
lects th e prem ium rate n ot only upon
th e am ounts paid in by savers and in ­
vestors b u t also upon any am ounts
borrow ed by th e in su red associations,
and except th a t in th is case th is In ­
su rance C orporation w ill have pow er
to assess an additional 1/12 of 1%
each year, if th e sam e should be
needed, to pay expenses and losses.
The o th er questions dealth w ith in
am ending th e In su ran ce C orporation
S tatu te are largely technical m a tte rs
based upon th e experience of five y ears
of operation and w ill n ot m aterially
affect th e statu s of th e insurance or of
th e In su ran ce C orporation. T he p re ­
m ium ra te reduction w ill greatly en ­
courage in su ran ce of accounts by a
larg er nu m b er of in stitu tio n s. In s u r­
ance of accounts has been th e m ost ef­
fective m eans used to date of stim u lat­
ing savings a t low er rates and th e re ­
fore providing hom e loans a t low ra te s
and on favorable term s.”
As an inv estm en t counsel, I am con­
vinced th a t Savings an d L oan Asso­
ciations have a definite place in th e
in v estm en t sun. It is m y belief th a t
b e tte r u n d erstan d in g of Savings and
L oan A ssociations w ill be a protection
to th e in v estor and surely w ill be all
to th e benefit of sound and progressive
developm ent in th is field of finance.

Dividend
The board of directors of M anufac­
tu re rs T ru st Com pany declared the
reg u lar q u a rte rly dividend of 50 cents
p er share on th e com m on stock, pay ­
able Ja n u a ry 2, 1940, to stockholders
of record on Decem ber 15, 1939.
T he board also declared th e reg u lar
q u a rte rly dividend of 50 cents p er
sh are on th e p referred stock, payable
Ja n u a ry 15, 1940, to stockholders of
record on D ecem ber 30, 1939.

Always Is
Job Seeker: “A nd if I tak e th e job I
get an increase in six m o n th s?”
M anager; “Yes . . if y o u r w o rk is
satisfacto ry .”
Job Seeker: “I m ig ht have know n
th e re w as a catch in it.”

G eneral Business
Is N o w at

Highest Level Since 1937
UR index of g en eral business
activ ity is 107.2 (p relim in ary )
for N ovem ber, as com pared
w ith 105.6 (revised) for October. The
g en eral b u siness index, as th e c h a rt
show s, is now a t th e h ig h est level
since Septem ber, 1937. W ith th e ex­
ception of steel ingot p roduction and
bitu m in o u s coal production, w hich
show ed slig h t declines a fte r seasonal
ad ju stm en t, all of th e com ponents of
our index w ere again h ig h er in No­
vem ber. All com ponents except m is­
cellaneous car loadings and autom obile
produ ctio n w ere above estim ated n o r­
mal. T he autom obile p roduction index
w ould probably have been above es­
tim ated norm al except for th e C hrys­
ler strike.
Now th a t th e C hrysler strik e has
been settled, th e autom obile produc­
tio n index w ill undo u b ted ly show a
sh arp rise for Decem ber, possibly for
Ja n u a ry , an d w ill serve as an offset
to th e decline in steel ingot production
w hich seem ed to be se ttin g in early
in D ecem ber. In asm u ch as steel ingot
produ ctio n has recen tly been a t an
exceptionally high level, how ever, and
inasm uch as unfilled o rders for fin­
ished steel pro d u cts are believed to be
e x ta n t in su b sta n tia l volum e, th e c u r­
re n t decline in ingot o u tp u t is not by
itself a serious adverse facto r in th e
g en eral b u siness outlook.
A lthough in a few in d u stries th e
g re a t buy in g m ovem ent w hich fol­
low ed th e o u tb reak of th e w ar in E u ­
rope w as m ore spectacu lar th a n th e
one th a t follow ed th e 1936 election,
statistics on m a n u fa c tu re rs’ o rders re ­
cently com piled by th e N ational In ­
d u strial C onference B oard show th at,
for m a n u fa c tu rin g in d u stries g en eral­
ly, th e to ta l volum e of new orders w as
slig h tly less th a n th e volum e received
im m ediate follow ing th e 1936 election.
The 1936 b u y in g m ovem ent w as suffi­
cient to create a su stain ed volum e of
high b u siness activ ity for ab o u t eleven
m onths, how ever; and in view of th e
fact th a t th e Septem ber-O ctober, 1939,
buy in g m ovem ent w as alm ost as heavy
as th a t of 1936, it is clear th a t unless
som e un fo reseen catastro p h e leads to
th e cancellation of o rders alread y
placed, th e volum e of business now
on th e books of m a n u fa c tu rers is suffi-

O


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

Prepered fo r
T H E N O RTHW ESTERN BANKER
by an organization of
le a d in g e conom ists

cient to m ain tain a high level of busi­
ness activ ity for several m onths to
come.
In th e m eantim e, of course, in ­
creased dem and for w ar m aterials,
increased dem and for goods from n eu ­
tra l countries or o ther factors m ay
lead to a secondary buying m ovem ent,
in w hich event th e decline in business
activ ity w hich some econom ists have
p redicted for 1940 w ould be postponed
indefinitely. In D ecem ber a secondary
buy ing m ovem ent developed in th e cot­
ton textile m arket, leading some ob­
serv ers to conclude th a t a general sec­
ondary buying m ovem ent m ight be in
th e offing. New steel orders continued
to recede, how ever, and th e sensitive
n o n ferrous m etal m ark ets rem ained
dull, so th a t for th e tim e being any
such conclusion rests largely on con­
je c tu re and hope.
In th e la tte r p a rt of N ovem ber and
th e first p a rt of D ecem ber, business
and financial sen tim en t w as subject to
considerable depression from th e cir­
cum stance th a t despite th e high level
of g eneral business activity both com­

m odity prices and stock prices con­
tin u ed to recede. In th e m iddle of
Decem ber, how ever, sen tim en t took a
slight tu rn for th e b e tte r as w holesale
com m odity prices tu rn e d upw ard. Al­
though th e u p tu rn w as led by ag ricu l­
tu ra l com m odities, and w as bro u g h t
about largely by w h at w as officially
rep o rted to be th e w o rst dro u g h t in
th e clim atological h isto ry of th e U nited
States, th ere w as also a m oderate u p ­
tu rn in in d u strial raw m aterial prices,
suggesting th a t im p o rtan t consum ers
of raw m aterials w ere eith er feeling a
slight revival in new business or w ere
confident th a t such business w ould
eventuate.
A lthough some statistician s had esti­
m ated th a t production w as o u tru n n in g
consum ption, re ta il trad e th ro u g h o u t
th e county show ed a su b stan tial in­
crease in N ovem ber, w hen dollar vol­
um e w as n early as high as th e best
m onths of 1937. T he p resen t physical
volum e of retail trad e is probably
h ig h er th a n th e best levels reached in
1937. Up to th e end of October, m ore­
over, m a n u fa c tu rers’ inventories had
show n only a m oderate increase; and
inasm uch as re ta ile rs’ inventories h ad
show n little if any increase, rep o rts to
th e effect th a t th e inv en to ry situ atio n
w as gettin g out of h an d lacked con­
firm ation.
(T u rn to page 31, please)

The Month s Market Maneuvers
Prepared for TH E N ORTH W ESTERN B A N K ER by J A M E S H. C L A R K E ,
Assistant Vice President, American National Bank & Trust Company, Chicago

A RK ETS w ere generally
h ig h er in D ecem ber—year
end prices being aro u nd th e best
levels for th e m onth. B ut th e
volum e of tra d in g w as sm all and
a cautious tone prevailed. F rom
surface
indications,
caution
seem ed to som e to be u n w a r­
ra n te d —w h a t w ith business ac­
tiv ity reach in g a new high for
ja m e s h . c l a r k e
th e recovery. B ut u n certain ties
abroad plus fear of a let-down in
th e first q u a rte r of 1940 w ere given m uch w eight in
m a rk e t appraisals.

M

With unem ploym ent rolls still large—probably
around nine m illions—it is difficult to believe that
activity in December was higher than the best
months of 1929. The figures, however, shoAv that to
be the case. The top of the 1929 boom came in June
when the Federal Reserve Board’s index of indus­
trial production hit 125. By November it had
dropped to 110—In December it was 103. In 1939 the
developm ents in business were quite the opposite.
In June the index figure was 98—in November 124—
and the estimated figure for December, 127. If the
actual figure w hen released show s the estimate to be
correct, a new high, of course, Avill be established. It
should be noted that the index has not been adjusted
for increases in population—hence the number eligi­
ble for em ploym ent today is much larger than in
1929. But eA^en so—business activity in the last four
months of the year AA^as sharply higher.

We gave a number of figures in our November ar­
ticle to illustrate this—enlarged steel production, in­
creases in the output of electricity, sharply higher
automobile sales, much larger earnings and divi­
dends—and other tangible evidences of improved
business. While the November stock market gave
no heed at all to the betterment—the December mar­
kets were slightly higher. The Dow-Jones indus­
trial average stood at 145.69 as December began and
150.24 as it ended. There were twenty-five trading
days in the month, with gains reported in thirteen
and losses in twelve. Practically a stand off so far
as days were concerned—but there were two days in
which over two points were gained, only one day in
which losses ran as high as 88c.
G overnm ent bonds w ere stro n g e r despite th e re ­
fund in g of $1,378,364,000 of M arch 15, 1940, notes on
D ecem ber 12th. F o r instance, th e T re a su ry 2%s of
1952/50 w hich w ere quoted 104.22 on D ecem ber 1st
h ad m oved up alm ost a poin t by D ecem ber 30th.
T he long 2%s of 1965/60 gained alm ost a point and
a h a lf d u rin g th e m o n th —b u t w ere still about tw o


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Federal Reserve Bank of St. Louis

points below their all time highs. The new 214 s of
1953/51—offered along with the four year nine
months notes in the refunding—had climbed to
102.29 bid as the month ended. High grade muni­
cipals and corporates were firm to slightly higher—
no important price changes, however.
Strength in the bond market encouraged a number
of corporations to offer refunding issues last month
—the only issues of any size since the outbreak of
the Avar appeared. The Louisville and Nashville
refunded its unified fours Avith sixty million bonds
—one half due in ten years and the balance in
tw enty. This issue could not be characterized as a
riot in the market but dealers felt the reception Avas
quite satisfactory. Other financing included $8,000,000 W est Virginia Pulp and Paper mortgage bonds,
$45,000,000 of Northern Indiana Public SerAdce 3%s
of 1969, $48,000,000 Public SerAdce of Indiana bonds
and notes—to mention a few. The syndicates had to
do selling jobs on all of these issues—but Avere
enough encouraged to look to more neAv issues in
January.

A review of the outlook for the markets as we be­
gin 1940 brings a number of factors into sharp con­
trast. Despite a high rate of industrial production
currently—there has been a slackening in new or­
ders whicn has lead to forecasts of a down-trend in
the next two or three months. We referred to this
earlier in mentioning the caution in the stock mar­
ket. Should war orders develop to take up the slack
the situation would quickly change—but most cor­
porations have revised their thinking on war profits.
Aside from Aircraft and to some extent trucks
there appears to be little optimism in business cir­
cles based on war prospects alone. In fact very little
desire for war orders this time—memory of the last
post war collapse being too fresh. Few prognostica­
tors of note will forecast their predictions for 1940
business—those who have, look for this year to be
better than 1939—but not exceptionally better. If
this is true—the stock market will be uninteresting.
—

The domestic factors which currently make for a
continuance of high prices for quality bonds seem
to be present—a plethora of money, gold imports,
rising reserves—from the longer range view point
there are one or two adverse factors—principally
the possibility of business expansion which calls for
materially increased bank loans. In the foreign field
of influence—a substantial German drive in the
spring—bombings of London and a weakening of
the blockade—could harm our bond prices. In
short, as we start the year—investors appear justi­
fied in adopting the attitude of the markets—and
be cautious.

31

H IG H E S T LEVEL S IN C E
1937
(C ontinued from page 29)
A lthough several adverse factors
are presen t, and alth o u g h th e political
tre n d is difficult a t th e m om ent to ap­
praise, th e balance of probabilities
favors a co n tinu atio n of active b u si­
ness conditions, th ro u g h o u t th e first
q u a rte r of 1940, probably longer.

m ake a valuable addition to th e official
staff of th e M idland N ational B ank and
T ru st Com pany,” said P resid en t M att­
son.
The M idland N ational B ank and
T ru st Company, affiliated w ith N o rth ­
w est B ancorporation, has capital, su r­
plus and undivided profits of $1,500,000
and deposits of $17,250,000.

in 1931, and subsequently becam e as­
sista n t vice p resid en t in charge of th e
developm ent and servicing of national
accounts.
“D uring his eighteen y ears of service
w ith b an king in stitu tio n in M inneapo­
lis, Mr. B rockm an has been active in
tru s t and in v estm en t fields as w ell as
com m ercial banking, and .he should

Brockman to
Midland National

K

E lectio n of W. E. B rockm an as vice
p re sid e n t of th e M idland N ational
B ank and T ru s t C om pany has been an-

Lincoln National Bank and Trust Company
FORT WAYNE, INDIANA

December 13, 1939
Scarborough & Company
First National Bank Building
Chicago, Illinois
Att: Mr. Scarborough
Gentlemen:
We acknowledge receipt of your
letter of December 11 enclosing check of
the Peerless Casualty Company in the
amount of $5,206.37 in full settlement
of our claim against Peerless Policy
#5181, for the mysterious disappearance
of a package containing a deposit of one
of our depositors.
We wish to express our appreciation
for the prompt payment of this claim and
also the thoroughness of your investiga­
tion.
It is the promptness of payment when
the unforeseen happens that anyone pur­
chasing insurance should consider.

W . E. B R O C K M A N

As suggested over the telephone re­
cently, we are herewith enclosing a list
of checks contained within the deposit
and might state at this time that we are
making reasonable progress in collection
and procuring duplicate checks.

nounced by E. L. M attson, p resident,
follow ing a m eeting of th e b a n k ’s
board of d irecto rs held D ecem ber 27,
1939.
Mr. B rockm an w ill assum e a t once
his new du ties m ade necessary by th e
gro w th an d developm ent of th e Mid­
land Bank, and w ill resig n from his
position as a ssista n t vice p resid en t and
a ssista n t se c re ta ry of N o rth w est Bancorporation.
Mr. B ro ck m an ’s b an k in g experience
began in F e b ru a ry , 1922, w h en he en ­
te re d th e em ploy of th e M innesota
L oan and T ru s t Com pany, la te r con­
solidated w ith th e N o rth w e ste rn N a­
tio n al B ank. Soon a fte r th e organiza­
tio n of th e N o rth w est B ancorporation
he becam e its d irecto r of public re la ­
tions, w as elected a ssista n t secretary

Again accept my personal thanks for
the promptness of your remittance.
Very truly yours,

Cashier

OHB:mt

Sc

arbo ro ug h

6? C

o m pany

In su ra n c e C o u n se lo rs to B a n k s

First National Bank Bldg., Chicago
R. H. KUBE, Iowa Representative
Valley Bank Bldg., Des Moines, Iowa

Northwestern Banker

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

January Î9k0

32

IO W A

COMMERCIAL
INVESTMENT
TRUST

Investm ent Bankers
Association

IN C O R P O R A T E D
JO H N J. QUAIL
President
D avenport

Organized 1935

H E 1940 an n u al m eeting of th e
Iow a In v estm en t B ankers Associ­
ation w ill be held in D avenport on
J a n u a ry 25 and 26, according to an an ­
n ouncem ent by G eneral Com m ittee
C hairm an, W alter E. Vieth, of V ieth,
D uncan & Wood, D avenport in v est­
m en t house. T he com plete program
for th e occasion has not y et been a r­
ranged, b u t it is contem plated th a t a
sp eak er of n ational prom inence w ill
address th e gathering.
In addition to Mr. V ieth, others
nam ed on com m ittees are Verne F ill­
ers, reg istratio n ; Mike Ruhl, R. E.
Kramer, and Carl Stutz, a rra n g e ­
m ents; Mr. V ieth, John Quail, and
Garwood Kleinhen, speakers and p ro ­
gram ; and Matt Steffen, publicity.

T

C o m m erc ia l I n v est m en t
T r u s t Incorporated, with

capital and surplus in excess
of $57,000,000, provides a
nation-wide sales finance ser­
vice through subsidiary com­
panies with a network of
branch offices throughout the
United States. This service,
which consists of purchasing
self-liquidating accounts, ex­
tends to automobile dealers,
household appliance dealers,
and to manufacturers and
dealers in many lines of indus­
trial, commercial and profes­
sional equipment, including
the heavy goods industries.

C. I. T. offers its stand­
ard notes for short term
accommodation in varying
am ounts from $1,000 to
$100,000, in maturities from
60 to 270 days and at cur­
rent discount rates. These
notes are payable at any of
our 279 depositary banks
located in principal cities
throughout the country.
L atest published fin a n c ia l
statement and list o f depositary
banks w ill be mailed upon request.
ADDRESS

Treasurer,
Commercial Investment
Trust Incorporated
1 ParkAve., N ew York, N . Y.

Northwestern Banker

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

January 19 hO

. l e r ic h e
Secretary
Des Moines

roy w

the Chicago stock exchange and o ther
principal security and com m odity ex­
changes.
Of th e general p a rtn e rs of Babcock,
R ushton & Co., Orville E. Babcock,

T he city of D avenport sold $76,000
w o rth of corporate refu n d in g bonds to
th e W hite-Phillips Corp. of D avenport
a t 2 p er cent in te re st and a prem ium
of $2,451. T he bonds have an average
m a tu rity of 18 years.
Thomas L. Wood of Des M oines w as
elected p resid en t of th e Iow a Associa­
tio n of F inance Com panies to succeed
Clark A. Eide of F o rt Dodge, Iowa.
O ther officers elected are A. O. An­
derson, Sac City, Iowa, vice president;
W. H. Owen, Des Moines, secretary,
and E. E. Baker, Des Moines, treasu rer.
Consolidation of Babcock, R ushton
& Co., brokerage firm w ith a Des
M oines branch, and Goodbody & Co.
w as announced recently. Effective
Jan. 2, th e consolidated firm carries
th e nam e of Goodbody & Co.
The m ain Babcock, R u sh to n office
in Chicago and th e Des M oines and
M inneapolis
offices
w ill
become
b ran ches of th e new firm w ith o u t
change in personnel, th e announce­
m e n t said. LaVerne M. Barlow is m an ­
ager of th e Des Moines b ran ch of B ab­
cock, R u shton and w ill continue in th a t
capacity in th e new setup.
The new firm w ill hold m em berships
in th e N ew Y ork stock and curb ex­
changes, th e Chicago board of trade,

L. M. B A R L O W

Joseph A. Rushton, George A. Robin­
son, Edwin G. Colwell, Philip F. H eintz
and Martin J. Murray w ill becom e
p a rtn e rs in th e consolidated house,
along w ith all p a rtn e rs of Goodbody &
Co.

AT R IC H M O N D
(C ontinued from page 15)
bearing on th e need for carefully scru ­
tinizing our m en and m achines is in ­
creasing expense over w hich w e have
no control. F o r instance, th ere is th e
F ed eral D eposit In su ran ce C orpora­
tion prem ium for in su rin g our de­
posits, general taxes, Social Security
expenses, and th e W age and H our Law
—all co n stan tly increasing costs and
to tally beyond our control.”
W. S. Cochran, vice president, N a­
tional City B ank of Rome, Georgia:
“Soil conservation is v ital a t th is
tim e and because it m akes for b e tte r

33
H. Y. Offutt, vice president, F irs t
N ational B ank & T ru st Company,
Louisville, K entucky:
“M anagem ent of a b a n k ’s bond ac­
count is an a rt ra th e r th a n a science.
In all probability th e b est policy for
b an ks is to in vest th e ir p erm an en t
m oney in an in v estm en t th a t fits a
m a tu rity schedule. The practical ad­
van tage of having a m a tu rity schedule
of inv estm en ts cannot be over-em pha­
sized. T he m a tu rity plan is a corner
stone on w hich to build th e bond ac­
count, and one of fifteen y ear m a tu ri­
ties w ill co nstitute a reasonable fram e­
w ork.
T he b est inv estm en t is one
alw ays of high q uality th a t is bought

farm in g and b e tte r farm loans, th e
b a n k e r definitely has his place in th e
p ictu re because of his influence both
financially and as one w hose advice
an d counsel w ill have w eight w ith his
fa rm e r custom ers.
“A fu n d am en tal principle of ag ricu l­
tu ra l loans is careful consideration of
w h a t is b est for a fa rm e r—for each
in d iv id u al fa rm e r to w hom a loan is
m ade. E ach b o rro w er should have the
benefit of th e b a n k e r’s p ersonal in ­
te re s t an d his advice and counsel.
A g ricu ltu ral cred it can best be di­
rected by a sym p ath etic and studied
u n d e rsta n d in g of th e fa rm e r’s p ro b ­
lem s an d needs.”

A[EW

IS S U E

to yield V2 to 2Vz per cent, depending
on m atu rity , and w ith th e expectation
of its being held to m a tu rity unless its
q uality becomes questionable. In this
event, it should im m ediately be sold at
its m ark et value.”
E. S. W oolsey, vice president, L ouis­
ville T ru st Company, Louisville:
“T housands of persons every day
sit across desks from b an k ers and dis­
cuss w ith them th e ir m ost intim ate
problem s—a professional relationship
th a t m ay be com pared in its intim acy
w ith th e relatio n sh ip w hich exists be­
tw een th e law yer and his client or
th e doctor and his patient. It is a sort

Interest Exempt from, present Federal Income Taxes
Tax Exempt in the State o f South Dakota
$ 2 ,2 0 0 , 0 0 0

State of South Dakota
3% R e fu n d in g B onds, Series A A
Dated A ugust 1, 1939

Due A ugust 1, as show n below:

Redeemable as to $1,188,000 bonds, maturingfromAugust 1,1955 to August 1,1959, inclusive, in inverse numerical order, at the option of the State, on
August 1,1954, and onanyinterest paymentdatethereafteronthirty days publishednoticeat 103 %andaccruedinterest tothedatefixedfor redemption.

Legal Investments, in our opinion, fo r Savings Ban\s and Trust Funds in
Tfew Yor\, Massachusetts and Connecticut.
Eligible, in our opinion, to secure the deposits o f the State o f South Da\ota
and to secure Postal-Savings deposits.
A m ount

Due

$188,000
197,000

1950
1951
1952

2 0 2 ,0 0 0

$ 2 1 0 ,0 0 0

215,000
224,000
232,000

A m ount

Due

$237,000
245,000
250,000

1957
1958
1959

Y ie ld

Due

A m ount

Y ie ld

2.50%
2.50
2.60

2.60%
2.70
2.70
2.70

1953
1954
1955
1956

Y ie ld

2.75%
2.75
2.75

(an d a c c r u e d in t e r e s t )

These bonds bear 5% interest until February 1,1940 and h % thereafter to maturity, but no bonds will be delivered by us prior to February 1, 1940
T h e H O T 'l . L E O

A. T E M

M E T , A t t o r n e y G e n e r a l o f t h e S t a t e o f S o u t h D a k o t a , h a s a p p r o v e d th e i s s u a n c e , d e liv e r y a n d s a le o f t h e s e b o n d s i n a c c o r d a n c e

w i t h t h e p r o v i s i o n s o f R e s o l u t i o n s a d o p t e d b y t h e R u r a l C r e d i t B o a r d a t m e e t i n g s h e ld o n D e c e m b e r
T h e s e b o n d s a r e o ffe r e d w h e n , a s a n d i f

issueda n d

4, 1 9 3 9

r e c e iv e d b y u s a n d s u b j e c t t o a p p r o v a l o f l e g a l i t y b y M E S S R S . C H

C o p i e s o f t h e p r o s p e c t u s d e s c r ib i n g t h e b o n d s m a y b e o b t a i n e d f r o m s u c h o f t h e u n d e r s i g n e d a s a r e

and D ecem ber 21, 1939

APMA7s[ AT f D

licensedd e a le r s

L e h m a n B r o th e r s

F ir s t N a tio n a l B a n k & T r u s t C o m p a n y

W e lls -D ic k e y C o.

C U T L E R , C h ic a g o .

i n s e c u r it i e s i n t h i s s t a t e .

o f M in n e a p o lis

M in n e a p o lis

N o r t h w e s t e r n N a t io n a l B a n k & T r u s t C o.

F ir st N a tio n a l B a n k

A llis o n -W illia m s C o m p a n y

M in n e a p o lis

o f S t. P a u l

M in n e a p o lis

K a lm a n & C o.

J. M . D a in & C o m p a n y

B ig e lo w , W ebb &. C o. In c o r p o r a te d

S t. P a u l

M in n e a p o lis

M in n e a p o lis

J u stu s F . L o w e C o.

M a n n h e im e r -C a ld w e ll, In c.

M in n e a p o lis

F larold E. W ood & C o.
S t. P au l

T h e I llin o is C o. o f C h ica g o
D e s M o in e s

S t. P au l

P a in e , W eb b er &. C o.

S t. P aul

E. H . R o llin s & S o n s
In co rp o ra ted

C a ld w e ll, P h illip s Co.

G eo . C. J o n es C o.

T h e M ilw a u k e e C o m p a n y

M in n e a p o lis

S t. P a u l

A . C. A l l y n and C o m p a n y

J o h n N u v e e n & C o.

In co rp o ra ted

W h e e lo c k &. C u m m in s, In c.

J u r a n , M o o d y & R ic e

C h ic a g o

S te r n B r o th e r s & C o.
K a n sa s C ity , M o.

F ir s t N a tio n a l B a n k & T r u s t C o.

N o r t h w e s t S e c u r it y N a tio n a l B a n k

in S io u x F a lls

o f S io u x F a lls

January 3, 1940.

Northwestern Banker

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

January] 19W

34
of ‘business confessional’ w h ere p ro b ­
lem s are discussed an d disolved, w h ere
courses are ch arted for business an d
individuals, and w h ere m illions are in ­
fluenced in h ab its of w ork, th rift, sim ­
ple living, and self control. T here is
no o th er relatio n sh ip quite like th e
relatio n sh ip th a t exists betw een b a n k ­
e r and custom er. T he m ost should be
m ade of it, because th e re is th e cen ter
and source of sound and progressive
banking.

“T here is no b e tte r ideal for w hich
b an k in g m ay strive, and is striving,
th a n th a t in being loyal to and fighting
m ilitan tly for our banking system as
it exists today. In doing so, we shall
p re se n t no th re a ts to o th er elem ents
of o u r economic and social life. We
shall look after our own in terests w ith
m eticulous care, b u t a t th e sam e tim e
we shall have som ething to give to
o th ers.”

B abcock, R u sh to n &

Co.

135 So. La Salle Street. C hicago, Illinois
DES MOINES — NEW YORK — MINNEAPOLIS

The Partnership of BABCOCK, RUSHTON & CO. has been
dissolved as of the close of business on December 30, 1939.

G

oodbody

Co.

&

M em bers

N EW YORK STOCK EXCHANGE
CHICAGO BOARD OF TRADE
N EW YORK COTTON EXCHANGE
AND OTHER P R IN C IP A L STOCK AND COMMODITY EXCHANGES

115 BROADWAY
NEW YORK

135 SO. LA SALLE ST.
CHICAGO

W e wish to announce that

ORVILLE E. BABCOCK
IOSEPH A. RUSHTON
GEORGE A. ROBINSON

EDWIN G. COLWELL
PHILIP F. HEINTZ
MARTIN J. MURRAY

have this day been adm itted to general partnership and
will be resident in our Chicago office, with the exception of
Mr. Colwell, who will be resident in our New Y ork office.
The Chicago, Des Moines and Minneapolis offices of Babcock,
Rushton & Co. will be continued by us under the same
management and with the same personnel. The Des Moines
office, 218 Sixth Avenue, will be under the m anagem ent of

LAVERNE M. BARLOW
January 2, 1940

Telephone: Des Moines 4-5121

Close Contact with the
Majority of
Michigan’s Important Industries
☆

NATI ONAL BANK
OF DE T R O I T
DETROIT,

MICHIGAN

Member Federal Deposit Insurance Corporation

N orthwestern Banker

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

January 19JO

L E G A L DEPARTMENT
(C ontinued from page 18)
after w hen it w as m ade certain th a t he
w as not th e m an sought. Before plac­
ing him in jail in Iowa, how ever, one
of th e officers stated th a t he w as con­
vinced th ey had the w rong m an. L ater
th e m an picked up and subsequently
released sued the peace officers for
false im prisonm ent. Did th e fact «that
he had w aived ex trad itio n and volun­
tarily gone w ith th e officers p rev en t
a recovery by him?
No. A person who is wrongfully ar­
rested for a crime committed in an­
other state does not waive his rights to
object to the unlawfulness of his ar­
rest and his illegal removal from the
state and to recover therefor in a dam­
age suit simply because he w aives ex­
tradition. This is especially true when
the imprisonment continues after one
of the officers who assisted in the ar­
rest states that he is satisfied that the
wrong man had been seized.
Jordan worked in South D akota as
a loan solicitor for a loan com pany
th ere for several years. He w as em ­
ployed u n d er a w ritte n con tract th a t
provided th a t he should receive com­
m issions only on loans upon w hich th e
com pany received w ritte n applications
from th e prospective borrow ers w ith in
th irty days afte r he, Jord an, called on
them . S hortly afte r he com m enced
soliciting, th e com pany v o lu n tarily
and w ith full know ledge of all th e facts
w aived th is provision and th e re a fter
settled w ith him periodically as though
it did n ot exist. No fraud, duress, or
extortion w as practiced on th e com­
pany by him in th is connection. He
obtained an offer from an o th er com­
pany desiring his services and re ­
signed. In finally settlin g accounts,
th e loan com pany sought to enforce
th e th irty day provision and recover
all am ounts previously paid to him
th a t m ight have been governed by it.
Could th e com pany do this?
No. A person cannot, either by way
of set-off or counterclaim or by direct
action, recover back money which he
has voluntarily paid w ith a full knowl­
edge of all facts, and without any
fraud, duress, or extortion, although
no obligation to make such payment
existed.
Sorvisteau died in N ebraska leaving
a su b stan tial estate there. A w ill con­
te st developed and th e m a tte r of ap ­
praisin g th e estate for inh eritan ce
taxes w as overlooked for tw o years.
W hen it w as discovered th a t th e ap­
praisal had been overlooked, th e om is­
sion w as rectified as soon as possible
b u t th e p arties w ho m ade th e appraisal

35
m ade it as of tw o y ears a fte r Sorviste a u ’s death. W as th is proper?
No. In appraising property for in­
heritance tax purposes, the basis of
valuation is the cash value at the date
of the death of the decedent, and that
is ascertained by determ ining the
amount of money the property would
bring if offered and sold for cash upon
the open market at that time.
A Nebraska banker obtained a policy
of in su ran ce th a t provided th a t certain
benefits should be paid him in th e
ev en t he should becom e w holly and
p e rm a n e n tly disabled by bodily in ju ry
or disease. W as it n ecessary th a t he
becom e absolutely helpless in order to
recover on th e policy?
No. A policy of insurance providing
for the paym ent of benefits w hen the
insured has become w holly and perma­
nently disabled by bodily injury does
not mean, as its literal construction
would require, a state of complete help­
lessness. The total disability contem ­
plated means inability to do all the sub­
stantial and material acts necessary to
the prosecution of the insured’s busi­
ness or occupation in his customary
and usual manner.

V. W. B r e w e r C o .
M

u n ic ip a l

B

o n d s

The State of South Dakota has a record of debt reduction and
economy in government that makes its obligations
sound investments.

F IR S T N A T -SO O LIN E BLD G.

M IN N E A P O L IS

INTERSTATE FINANCE
CORPORATION
D U BU Q U E, IO W A

Increase Surplus
T he d irecto rs of th e Live Stock N a­
tio n al B ank of Chicago have approved
a $250,000 in crease in surplus, raisin g
th e b a n k ’s su rp lu s account to $1,500,000, according to a sta te m e n t m ade by
D avid H. R eim ers, p resident.
The capital and su rp lu s of th e b ank
six y ears ago on D ecem ber 30, 1933,
w as $1,250,000. T his w as rep resen ted
by $1,000,000 capital and $250,000 s u r­
plus. Since th a t tim e th e su rp lu s of
th e b an k h as been in creased to $1,500,000. C apital has rem ain ed a t $1,000,000.
T his in crease of $1,250,000 in th e capi­
tal and su rp lu s account has come out
of earn in g s d u rin g th a t period.
T he Live Stock N ational B ank of
Chicago has established an o u tsta n d ­
ing reco rd in deposit grow th. On De­
cem ber 30, 1933, deposits w ere $9,000,000, and today th e y are approxim ately
$29,000,000, an increase of $20,000,000
for th e six years. T h ere are over five
h u n d re d b an k s in th e S eventh F ed eral
R eserve D istrict w hich c a rry accounts
in th is bank.
The d irecto rs are F re d e ric k H.
Prince, Jam es A. M cDonough, R obert
J. D unham , W illiam J. O’Connor, R ich­
ard H ackett, D avid H. R eim ers, Orvis
T. H enkle, Clyde H. S chryver, A rth u r
G. L eonard and T hom as E. W ilson.

Collateral Trust Notes of
convenient maturities and
denominations. Rates and
latest statement of condi­
tion on request.
* Write today for your copy
of our latest Annual Report

Economy Auto Finance Plan
Serving Iow a, W isconsin a n d Illinois A utom o­
bile D ealers a n d P urchasers with a com plete
new auto finance p la n that m akes a v a ila b le
rates a s low a s $3.00 p er $100 p er year. A vail­
ab le through a n y established autom obile dealer.

N orthw estern B anker

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

January 19 k0

36

Pay Dividend
P ay m en t by U nion P ro p erties, Inc.,
of a $5,250,000 dividend to h olders of
its cred ito rs’ notes as of N ovem ber
29th, w as m ade available D ecem ber
15th, according to G ordon H. R obert­
son, executive vice president. T his
dividend, re p re se n tin g 25 p er cent of
face value of th e notes, b rin g s th e total
am o u n t paid to depositors of th e old
U nion T ru s t C om pany to 85 p er cent
of th e am ount due th em w h en th e b ank
closed. A bout 80,000 are p articip atin g
in th e dividend.
The U nion B ank of Commerce,
w hich also w as form ed as p a rt of th e
U nion T ru s t reo rg an izatio n plan, has
m ade steady p rogress since its estab ­
lish m en t in May, 1938. Its to tal assets
on O ctober 2d w ere $36,724,889, and it

is expected th a t fu rth e r gains w ill be
reflected by its nex t statem en t at th e
end of th e year. Oscar L. Cox and
Clare W. B anta, b oth of w hom w ere
form erly associated w ith banks in San
F rancisco and in New York, are p resi­
d en t and executive vice president, re ­
spectively.

First National, St. Louis
T he board of directors of the F irst
N ational B ank in St. Louis on Decem­
b er 12th declared a dividend of $1.00
p er share, 60 cents payable as an ex tra
on D ecem ber 20th to stockholders of
record D ecem ber 15th, and 40 cents
payable as a regular, on F e b ru a ry 29,
1940, to stockholders of record F eb ­
ru a ry 24, 1940. Total actual disburse­
m ents in th e calendar year 1939

is engaged primarily in facilitating
wholesale distribution and retail sales
of the following products of General
Motors Corporation and its world'
wide affiliates: Cadillac, la salle,
BUICK, OLDSMOBILE, PONTIAC,
Chevrolet automobiles; frigidaire
appliances for refrigeration and air
conditioning; delco lighting, power
and heating equipment; GMC trucks;
BEDFORD, VAUXHALL, OPEL, BLITZ
— foreign made automotive vehicles.
The business consists of investments in
selfdiquidating credits, widely diversh
fied as to region and enterprise, capital
employed being in excessof $80,000,000.

G E N E R A L

MOTORS
INSTALMENT

P L A N
These

notes

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

are available, in limited amounts, upon request.

EXECUTIVE OFFICE NEW YORK ' BRANCHES IN PRINCIPAL CITIES

N orthw estern B anker

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

January 19W

am ounted to $2.60 p er share.
A paym ent of one-half m o n th ’s sal­
a ry w as authorized for all em ployes,
exclusive of officers, as additional com ­
pensation.

Federal Reserve Director
Clifford V. Gregory, associate pub­
lisher of W allaces’ F a rm e r and Iowa
H om estead, has been appointed a di­
recto r of th e Chicago F ederal R eserve
B ank for a three-year term beginning
Ja n u a ry 1, 1940. Mr. G regory came
w ith W allaces’ F a rm e r and Iow a
H om estead in his p resen t capacity in
July, 1937, from The P ra irie F a rm e r
of Chicago w here he had been editor
of th e publication for tw enty-six years.
T here is probably no individual in th e

A

X
C L I F F O R D V. G R E G O R Y

M iddlew est w ho is in closer touch w ith
ag ricu ltu re and kin d red industries.
Gen. R obert E. Wood, w ho is ch air­
m an of Sears, Roebuck & Company,
w as m ade ch airm an of th e Chicago
bank, and W. C. Coffey of St. Paul,
M innesota, dean of th e U n iversity of
M innesota a g ricu ltu ral college, w as
m ade ch airm an of the M inneapolis
bank.
The o ther 10 b an k chairm en w ere
reappointed. T he board also reap ­
pointed m ost of th e o th er officers and
directors of federal reserve banks and
b ranches w hose term s expire a t th e
end of 1939.

Twelve Easy Lessons
P lu m b er (arriv in g a little late):
“W ell—how ’s th e leak?”
H ouseholder (standin g knee-deep in
w ater): “Oh it’s com ing fine. W hile I
w as w aiting for you I ta u g h t m y w ife
to swim!”

À

'h

37

Minneapolis-Moline
Promotions
The M inneapolis-M oline P ow er Im ­
plem ent C om pany has announced tw o
prom otions in its staff at th e hom e of-

cash ier’s departm ent, he w as later ap­
pointed a ssistan t cashier. D uring
1920 and 1921, Mr. Holm served as as­
sista n t b ran ch m anager a t th e Com­
p an y ’s Fargo, N o rth Dakota, office.
R etu rn in g to th e Hom e Office, Mr.
Holm served as cashier u n til 1924,
w hen he w as elected a ssistan t tre a s­
u rer.
W ith the form ation in 1929 of M in­
neapolis-M oline P o w e r Im plem ent
Company, Mr. Holm w as elected as­
sistan t treasu rer. He served in th is
capacity u n til 1935, w hen he took over
duties of general credit and collection
m anager. Upon th e ap p o in tm en t of

y ears of accounting a t th e U n iversity
of W isconsin. W hen th e M inneapolisM oline Pow er Im plem ent Com pany
w as created in 1929, he joined the
H om e Office sales d ep artm ent, and a
y ear later w as m ade a ssistan t division
m anager at th e C om pany’s K ansas City
D ivision Office. He re tu rn e d in 1934 to
th e accounting d ep artm en t to become
p aym aster. T his position he held u n ­
til appointed credit and collection
m anager.
H en ry S. H olm en tered th e em ploy
of one of MM’s predecessor com panies,
M inneapolis Steel and M achinery
Company, in 1909. S tartin g in the

F e d e ra l D iscount C o rp o ratio n
Dubuque, Iowa

A u to m o b ile F in an ce
T im e P a y m e n t P la n s f o r
A u to m o b i le

P u rch asers

m a m
V. E. JANSSEN

Capital, Surplus and U ndivided Profits

flee in M inneapolis—th a t of V. E.
Ja n sse n to cred it and collection m an ­
ager, and H en ry S. Holm, w ho w ill as­
sum e added d uties in addition to his

over

$ 1 ,2 5 0 , 0 0 0
H U B

Branches in Iowa — Illin o is — W isconsin — M innesota
•

a

m

S h ort T erm C ollateral T ru st N otes

M

BONDS

u n ic ip a l

P u b lic

U t ilit y

In d u s t r ia l

H. s. HOLM
position as a ssista n t tre a s u re r of th e
Company.
Mr. Jan ssen is 40 y ears old and en­
te re d th e accounting d e p a rtm e n t of
one of MM’s predecessor com panies,
M inneapolis Steel and M achinery
Com pany, in 1923, a fte r ta k in g th re e

A.GALLYN a n d C O M PA N Y
Incorporated
1 0 0 W est M onroe Street, C hicago— T el. F ran k lin 8 4 0 0
New Y ork
R ep resen ta tiv es:

M ilw aukee
W aterloo

O m aha
D es M oines

B oston
Cedar R apids

Northwestern Banker

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

January 1940

38
Mr. Ja n sse n as credit and collection
m anager, Mr. H olm again assum es
m ore active d uties in his capacity as
assista n t tre a su re r, w hich position he
h ad held for some tim e previously.

Midwinter Meeting
The a n n u al m id w in ter m eeting of
th e executive council of th e A m erican
In stitu te of B anking w ill be held in
F o rt W orth, Texas, J a n u a ry 24-26, it is
announced by H a rry R. Sm ith, p re si­
den t of th e In stitu te an d vice p resid en t
of th e B ank of A m erica, N. T. & S. A.,
San Francisco, C alifornia.

T he executive council is th e govern­
ing body of th e In stitu te consisting of
rep resen tativ es elected by th e chap­
te rs in 12 districts of th e co untry and
th re e ex-officio m em bers—th e p resi­
dent, vice president, and im m ediate
p ast president.
T he m id w in ter m eeting is th e in te r­
im conference of th e Council held for
th e purpose of review ing activities and
considering policies and plans. The
In stitu te y ear culm inates in th e a n ­
n ual convention w hich w ill be held at
Boston, M assachusetts, Ju n e 3-7.
Two days of com m ittee m eetings
w ill precede the general session of th e

MORTGAGE INVESTMENT
CORPORATION
SHORT TERM COLLATERAL TRUST NOTES
Secured by FHA Insured Mortgages
held under T rust Indenture
by
C entral N ational B ank & T rust Company, Des Moines, Iowa, Trustee

M o rtg a g e In v e s tm e n t C o rp o ra tio n
825 Fleming Bldg.
Des Moines, Iowa

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

Iow a G uarantee, Inc*
$ 7 0 ,0 0 0 ,0 0 0 .0 0
COLLATERAL TR U ST NOTES
In th e p a st tw e n ty -tw o y e a r s h a v e p a id h u n d r e d s o f
b a n k s p r o fita b le a n d se c u r e e a r n in g s on reserv e an d
su r p lu s m o n e y w ith o u t a n y flu c tu a tio n in v a lu e .

M aturities from three to nine m onths at graduated
rates of discount.

Shops Building
N orthwestern Banker

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

January 1940

Des Moines, Iowa

executive council. These include th e
com m ittees on C hapter Affairs, E d u ­
cation, N om inations, and T ra n sp o rta ­
tion.
T. E. G raham of th e F irs t N ational
Bank, F o rt W orth, Texas, is in charge
of local arrangem ents.

Promotions
M anufacturers T ru st Company, New
York, announces th a t F ra n k P. Gage,
A ndrew P. M aloney, and E d m und J.
N icholas have been elected tru s t offi­
cers. Mr. Gage and Mr. M aloney w ere
form erly a ssistan t tru s t officers. Mr.
N icholas has been associated w ith th e
b an k ’s tru s t d ep artm en t for several
years.

1940 Conventions
Feb. 13-15: M id-W inter T ru st C onfer­
ence, New York.
March 21-22: A.B.A. Regional Confer­
ence, Denver, Colorado.
April 21-24: Spring m eeting, A.B.A.
E xecutive Council, T he H om e­
stead, H ot Springs, Va.
May 2-3: O klahom a a t Tulsa.
May 6-8: M issouri.
May 8-10: K ansas a t W ichita.
May 15-16: South D akota at W atertown.
May 15-16: Indiana, Claypool Hotel,
Indianapolis.
May 23-25: N ational Safe D eposit Ad­
visory Council, H otel S tatler, Bos­
ton.
May 28-29: Illinois, P alm er House,
Chicago.
June 3-5: Iowa.
June 3-7: A m erican In stitu te of B ank­
ing, Boston.
June 5-7: M innesota a t M inneapolis.
June 11-12: W isconsin.
June 14-15: N o rth D akota a t Minot.
June 17-19: M ichigan a t G rand R ap­
ids.
June 21-22: Colorado, S tanley H otel
E stes P ark.
Sept. 22-26: A m erican B ankers Asso­
ciation, A tlantic City, New Jersey.

Male Chorus
F o r th e sev enth year th e m ale cho­
ru s of th e City N ational B ank and
T ru st Com pany of Chicago, m ade up
of 35 m em bers of th e organization,
followed its an n u al custom of singing
C hristm as Carols on th e m ain b anking
floor.
The chorus sang on F riday, Decem ­
b er 22d, betw een 1:40 and 2:00 p. m.,
and on S aturday, Decem ber 23d, be­
tw een 11:40 and 12:00 noon, and a p re l­
ude of C hristm as m usic w as played on
th e H am m ond E lectric O rgan by Mr.
Leo T erry. E lm er Crabbs is th e direc­
to r of th e m ale chorus.

39
recently follow ing a recen t m eeting of
th e farm credit board.
Charles McCumsey, land ban k pres­
ident, told th e d istrict board th e re ­
am ortization privilege w as g ran ted
chiefly on lan d b an k com m issioner
loans originally w ritte n for 10 years.
W hen rew ritten , th e loans are spread
over a 20-year period.

NEBRASKA
Investm ent Bankers
Association

O r g a n iz e d 1 9 2 0
R O B E R T P. E LL IC K
Secretary
Omaha

A B E M A R T IN
President
L incoln

P E T IT IO N charg in g th a t sale of
th e S tan d ard Oil Com pany of
N eb rask a to S tan d ard of In d ian a
w as “fra u d u le n t” to th e m in o rity stock­
holders w ho did n o t agree to th e sale,
w as filed recen tly in d istric t co u rt at
O m aha by Clarence E. W inter, an Omah a n ow ning 10 sh ares of stock.
He claim ed n e t value of th e com ­
p an y M ay 31 w as $4,629,433, w hich
w ould m ake th e 161,403 sh ares of sto ck
o u tstan d in g w o rth $28.06 each instead
of th e $17.50 a sh are th a t w as accepted
by a m a jo rity of stockholders.
H e asked th a t th e co u rt set a reaso n ­
able an d ju s t v alu atio n on th e stock,
a t th e tim e of th e sale. In his petition,
he alleged th a t officers and d irectors
of S tan d ard of N ebraska h ad w eak ­
ened th e com pany by paying th e m ­
selves “excessive salaries, causing
losses to th e com pany.”

A

A n old-fashioned, y e t sophisticated
, H u n g arian m adonna doll ow ned by
Mrs. Harold T. Landeryou of Om aha
w on th e sw eepstakes aw ard as b est
single doll show n a t th e recen t N a­
tio n al Doll show in Chicago.
T he doll is a m in ia tu re of a fam ous
H u n g arian m adonna, w as m ade in
H u n g ary by p easan t w om en. Since
ta k in g up th e doll hobby th re e y ears
ago, w h en she b o ught h e r first p a ir of
dolls in Lim a, P eru, Mrs. L and ery o u
has collected 205 dolls re p re se n tin g 29
nations, 20 states an d 14 In d ian tribes.
O m aha’s bonds com m and a prem ium
because of th e c ity ’s re m a rk a b ly good
financial record, according to an anal-

Over-Counter Facilities
in All Markets
Primary Markets in Iowa
Securities
McGUIRE, WELCH & CO.
231 So. LaSalle
C HI CAGO

Bankers Trust Bldg.
DES

MOI NE S

ysis of th e m unicipal bond m ark et p re ­
pared by Shields & Co. of New York.
The re p o rt said in part:
“A few m unicipalities are so jealous
of th e ir credit as nev er to afford op­
p o rtu n ity for m ention in our ‘new is­
su e’ colum ns.
“W e seize th e o p p o rtu n ity to devote
space to one of th e m ost elusive of
th ese—Omaha, Neb. Om aha school
d istrict has issued no bonds since 1926,
D ouglas county none since 1929, th e
city none itself since 1932. As a re ­
sult, city n et tax-supported debt has
been reduced to $42.57 p er capita, city
and school to g eth er to an aggregate of
$71.62, and th e com bined burden, in ­
cluding th e county overlap, to $81.28.”
L onger tim e in w hich to pay th e ir
lan d obligations w as g ran ted m ore
th a n 3,500 N ebraska farm ers and live­
stock m en by th e F ed eral L and B ank
of Omaha, it w as disclosed in Omaha

Mr. and Mrs. Jesse L. L iverm ore of
New Y ork w ere in Om aha recen tly to
v isit th e la tte r’s m other, Mrs. F red
Metz. Mrs. L iverm ore is th e form er
H a rrie t Metz. The W all stre e t oper­
ato r and his w ife m ade th e trip by
plane.
F o rd Hovey, p resid en t of th e Occi­
dental B uilding and Loan A ssociation
and recen tly crow ned king of Ak-SarBen, received th e first 100 p er cent
stick er in th e Douglas county Red
Cross roll call drive.

Metcalfe Resigns
H erb ert Metcalfe, ch airm an of the
board of th e V alley Savings Bank, Des
Moines, has ten d ered his resignation
effective th e first of th is year. Mr.
M etcalfe has a nu m b er of m erch an ­
dising in terests in th e M iddlewest,
principally in Omaha, N ebraska.

L

a m s o n

B r o s.
8c C o1874
.
E
stablished

141 W. Jackson Blvd., Chicago
50 Broadway, New York
R E C

r u m m e r

& C

o m p a n y

1STNATBANKBLDG\^_^/CMICACO ILLINOIS
Established 1807

MUNICIPAL
BONDS
□

O M A H A O F F IC E
508 In surance B uilding
M. T. C rummer , Mgr.
□

D ES M O IN E S O F F IC E
314 Equitable Bldg.
W alter P. D avis, Mgr.

Our branch o ffices are
equipped to render com­
p lete brokerage service
in the handling of grain
(c a sh an d fu tu r e s ),
stocks, bonds, cotton and
provisions. Private wires
direct to all markets.
BRANCH OFFICES
N e w Y ork, N . Y .
B uffalo, N . Y.
C edar R a p id s, Iow a
D a v en p o rt, Iow a
D e s M oin es, Io w a
D ubuque, Io w a
F o rt D o d g e, Io w a
Iow a F alls, Iow a
M arsh alltow n , Iow a
M ason C ity , Io w a
S iou x C ity , Iow a
S torm L a k e, Iow a
W aterlo o , Io w a
F ran kfort, Ind.
L a F a y e tte , Ind.

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

M EM BERS OF LEADING SECURITY
an d C OM M O DITY EXCH ANGES

N orthwestern Banker

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

January 1940

40

C O R N

LO A N S

W e will be pleased to have you write us concerning
purchase or finance of CO R N LOANS, under the
provisions of the Commodity Credit Corporation
for 1939-1940.

K
Member Federal Deposit Insurance Corporation


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

41

C. C. NEUM ANN
President
Oakland

Suffers Stroke
E. R. Poole, a ssista n t cashier of the
C om m ercial State B ank of W ausa re ­
cen tly suffered a lig h t p araly tic stroke.
H is com plete recovery w as expected
by frien d s in a sh o rt tim e.
R eplacing him in his d uties a t th e
b an k d u rin g his illness w as Miss E th e l
B anks.

County Election
A t a re c e n t m eeting of th e S aunders
C ounty B ankers A ssociation, th e fol­
low ing w ere elected as officers for th e
ensu in g year.
A. F. V asina, Colon, president; Jo h n
H ansen, Davy, vice president; E.
Brodd, W ahoo, secretary -treasu rer.
E xecu tiv e C om m ittee: C. G. Hohl,
W ahoo, chairm an; E m erso n E rw ay,
Mead; M. L. Judy, A shland.
A steak d in n e r w as served p rio r
to th e m eetin g a fte r w h ich th e group
h eld th e ir b u siness m eeting in the
lobby of th e F irs t N ational B ank, W a­
hoo. A bout fo rty attended.

'A

*
1
* ** V- NEBRASKA
11 /-Jr jj
NEWS

Arends Dies

V■
.t A \ J
WM. B. H U G H E S
Secretary
Omaha

M em bers of th e board of directors
are now H. J. B irm ingham , E dw ard
M. G allagher, M. M. Sw ingley and I.
R. D ickerson.

Turkey Dinner
F ifty-eight ban k ers from four coun­
ties g athered in T ekam ah last m onth
for a tu rk e y dinner. The F irs t N a­
tional B ank of Lyons and th e Citizens
State B ank of D ecatur, w ere hosts
for th e occasion.
Follow ing th e ban q u et talk s w ere
h eard from C. C. N eum ann of Oak­
land, state p resid en t of th e N ebraska
B ankers association; Capt. Jo h n Den­
nison of th e Omaha Police D epartm ent,
w ho spoke on “F in g er-p rin tin g ” and
R. I. Stout, p resid en t of th e T ekam ah
F irs t N ational B ank w ho gave in fo r­
m ation about his recen t trip to W ash­
ington, D. C.
E. L. Jen kins, a ssistan t cashier of
th e W ashington County B ank at Blair,
is p resid en t of th e d istrict group of
b an k ers com prising th e counties of
B urt, W ashington, Douglas and Sarpy.

Jo h n H erm an A rends, 84, w ho lived
on the sam e Otoe county farm for 80
years, died recen tly of com plications
grow ing out of pneum onia. Mr. A rends
w as a director of th e B ank of Talm age,
and recen tly w as honored by th e Ne­
b rask a B ankers association as a half
cen tu ry banker. He w as a p rom inent
R epublican, having held several p re ­
cinct offices.

Shorten Hours
B eginning Ja n u a ry 2 B eatrice banks
w ill sh o rten th e ir b an king hours.
E ach day, except Saturday, th e banks
w ill be open from 9:30 a. m. u n til 3 p.
m., and th e clearing ho u r w ill be 11:30.
H ours at p resen t are 9:30 to 3:30, w ith
th e clearing h o u r 2:30. S aturday hours
w ill rem ain th e same. T h a t day banks
are open from 9:30 to 12:30 w ith th e
clearing h o u r 11 a. m.

In New Building
The N orth Side Bank, located at
4514 N o rth T h irtie th Street, Omaha,
opened in th a t location early last
m onth, providing a m uch needed b an k ­
ing service for all citizens and busi­
ness concerns in th a t section of the
city.
The N o rth Side B ank w as form erly
know n as th e B ank of Florence, w hich
has now m oved from th e location
w here it operated so successfully for
so m any years.
T he personnel of th e N o rth Side
B ank rem ains th e sam e as has been
associated w ith th e B ank of Florence.
Officers of th e b ank are W. B. R oberts,
president; R obert H. Hall, vice presi-

Buys Home
W. E. Sorensen, cashier of th e State
B ank of Cairo, recen tly p u rch ased th e
Dr. E v e rs residence in Cairo and w ith
Mrs. Sorensen and th e ir tw o d au g h ters
have m oved to it.

Named President
H u g h J. B irm ingham , O’Neill, w as
elected p re sid e n t of th e F irs t N ational
B ank of A tk in so n to succeed th e late
F re d H. Sw ingley w h en m em bers of
th e b o ard of d irecto rs m et recently.
Mr. B irm in g h am h ad been a vice-presi­
d en t of th e in stitu tio n since 1933, and
a m em b er of th e board since 1921.
I.
R. D ickerson, w ho h as been em ­
ployed by th e b a n k for m ore th a n 30
years, and w ho has served as cashier
since 1921, w ill continue in th a t posi­
tion. H e w as also elected to m em b er­
ship on th e b oard of directors. O ther
officers nam ed a t th e m eetin g are E d ­
w ard M. G allagher, O’Neill, vice p resi­
dent; H. A. Snyder, a ssista n t cashier;
and C layton W. H um p h rey , a ssista n t
cashier.

The new home of the N orth Side Bank

Northwestern Banker

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

January 19k0

42
den t and cashier; and E. J. Seitz, as­
sista n t cashier.
In keeping w ith th e policy of th e
in stitu tio n to provide com plete b a n k ­
ing service, a new personal loan de­
p a rtm e n t has been opened in th e new
location—th e only facility of th is n a ­
tu re in N o rth Omaha, and one w hich
should be of u n u su al value to th e
com m unity.
A fro n t view p ictu re of th e N o rth
Side B ank ap pears on page 41.

B a n k e r stated th a t “Albion N ational
B ank is th e title of a new banking
house organized in A lbion w ith a paid
up capital of $50,000.” J u s t recently
we discovered th a t th e A lbion N ational
B ank has been doing business in the
city of A lbion for th e p ast fifty years,
an d is our face red? W e are happy
to m ake th is correction, and congratu­
late th e Albion N ational on its m any
y ears of service to its com m unity.

225,000 New Loans

Correction
T hro u g h an e rro r from th e field in
re p o rtin g new s, an item in th e Decem­
ber, 1939, nu m b er of th e N o r t h w e s t e r n

T h at banks in N ebraska are actively
serving th e credit needs of th e ir com­
m u n ities is indicated by figures an ­
nounced by th e A m erican B ankers As­

Charter No, 2 0 9

First National Bank
o f Omaha

Change in Bassett

The
O ldest N ational B a n k
F ro m O m aha W est
Nationalized 1 8 63
OFFICERS
T.
F.
J.
C.
J.
A.

L. D a v i s .......................................... President
W.
T h o m a s ...................V ice President
F. M cD er m o t t .................. V ice President
D . S a u n d e r s .........................V ice President
T. S tew art , I I I ................................ Cashier
H.
Ch is h o l m ......... A ssistant Cashier

O. H . E l l io t t ..................... A ssistant
C. H . V e b e r ...........................A ssistant
E. F. J e p s e n ........................ A ssistant
E. N. S olom on ......................A ssistant
J. F. D a v i s ............................. A ssistant
H . A. A r n sb e r g e r .............Assistant
W. E. S p e a r ...................................Trust Officer
E. G. S olom on . . . .A ssistant Trust Officer

Member
Federal Reserve System

Northwestern Banker

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

January 1940

sociation show ing th a t th e com m ercial
banks of th e state m ade m ore th a n
225,000 new loans to taling $88,000,000
to business firm s and individuals d u r­
ing th e first six m onths of 1939 and re ­
new ed 240,000 outstanding loans to ta l­
ing $102,000,000 du rin g th e sam e p e r­
iod.
T hese figures are based on rep o rts
received from 144, or 33 p e r cent of
th e 436 com m ercial banks of th e state,
and m ake allow ance for th e concentra­
tion of lending activ ity in th e m etro ­
politan area of Omaha.
T he 144 banks rep o rted th ey m ade
84,543 new loans to taling $49,627,956
betw een J a n u a ry 1 and Ju n e 30, 1939,
and renew ed 60,820 ou tstan d in g loans
to taling $54,125,459. In addition, th ey
rep o rted 433 new m ortgage loans to
hom e ow ners and o ther real estate
ow ners totaling $1,592,911.
T he average nu m b er of new loans
p er bank w as 587, and th e average
loan w as $587.
The average n u m ber of renew als p er
b ank w as 422, and th e average renew al
w as for $890.
T he average nu m b er of new m o rt­
gages rep o rted p er b ank w as 3, and th e
average m ortgage w as for $3,679.

Cashier
Cashier
Cashier
Cashier
Cashier
Cashier

Member
Federal Deposit Insurance Corporation

An im p o rtan t change in B assett busi­
ness circles becam e effective w ith th e
beginning of th e new y ear w hen O.
M. Jeffrey retire d as vice p resid en t and
cashier of th e Com m ercial B ank of
B assett.
A nnouncem ent of th e change w as
m ade w hen Mr. Jeffrey disposed of his
in terests in th e b ank to H en ry Canenb u rg and E. H. L ittle. Mr. Canenb u rg w ill rem ain as p resid en t of th e
bank, a position he has held for a
nu m b er of years, w hile Mr. L ittle
w ill assum e th e responsibilities of
cashier. Mr. L ittle has been connected
w ith th e bink, in a clerical way, for
th e p ast four years. He had consider­
able banking experience before locat­
ing in B assett.
In disposing of his in terests in th e
bank, w ith w hich he has been con­
nected for a good m any years, Mr.
Jeffrey and fam ily w ill leave B assett
sh o rtly a fte r th e first of th e y ear and
locate elsew here, th e point not being
disclosed a t th is tim e.

A Math Major
Given: I love you.
To prove: T h at you love me.
Proof:
1. I love you.
2. T herefore, I am a lover.
3. All th e w orld loves a lover.
4. You are all th e w orld to me.
5. Therefore, you love me.

43

O maha Clearings
F a rm e rs’ co-operatives in N ebraska,
EA RLY $352,000 w as d istrib u te d by
South D akota, Iow a and W yom ing
O m aha b an k s to C hristm as club
sav ers la st year. T he six b an k s w hichw ere invited to send rep resen tativ es to
d istrib u te d th e funds w ere th e Om aha th e an n u al stockholders’ conference of
th e Om aha B ank for Co-Operatives in
N ational, F irs t N ational, U nited States
Omaha, Decem ber 18th-19th.
N ational, L ivestock N ational, P ack ers
Since its organization six y ears ago,
N ational and South Om aha Savings.
T h ere w ere nine th o u san d C h rist­ th e Om aha b ank has advanced m ore
m as club accounts. T he m oney is not th a n six m illion dollars to elevators,
cream eries, petroleum associations and
all u sed for C hristm as. I t helps pay
o th er co-operatives.
taxes, m eet in su ran ce prem ium s, buy
cars, hom e furnish in g s.
T he U nited States N ational alone
J. F. McDermott, vice presid en t of
paid out $193,809.50 to 5,003 persons.
T he to tal th is y e a r w as an increase
of m ore th a n $25,000 over last year.

N

Sixty b an k ers from Douglas, Sarpy,
W ash in g to n and B u rt counties, in ­
cluding an O m aha delegation, a tten d ed
q u a rte rly m eeting at T ekam ah, N e­
brask a, recently. Chief sp eak er w as
Captain John Dennison, head of th e
B ertillon b u reau of th e Om aha police
d ep artm en t, w ho u rg ed finger p rin tin g
of all perso n s as a m eans of identifica­
tion. T he b an k ers h e a rd a re p o rt of
th e new system of h an d lin g Commod­
ity C redit C orporation corn loans, by
R obert S tout of T ekam ah.

th e F irs t N ational B ank of Omaha, re ­
tu rn e d to his desk recently afte r an
enforced rest, ordered by his physician.
M ercedes Florence Caldwell, daugh­
te r of Mr. and Mrs. Victor B. Caldwell,
Jr., of Omaha, w as one of 25 freshm en
a t Radcliffe College, Cam bridge, Mas­
sachusetts, w ho w ere honored a t a
d in n er sponsored recen tly a t th e col­
lege by P h i B eta Kappa. Miss Cald­
w ell’s fa th e r is vice presid en t of the
U nited States N ational B ank of Omaha.
W hen Nile Kinnick of Omaha, senior
a t th e U n iversity of Iowa, w as aw arded
th e H eism an tro p h y recently as th e
n atio n ’s o u tstanding college football

LIVE STOCK NATIONAL BANK-OMAHA
S ta te m e n t of C on dition D ecem ber 30, 1939
RESOURCES
.$ 6,773,655.66
L oans and D isco u n ts....................
15,029.73
Bonds and Other S e c u r it ie s ....
(S ee Item ized L ist Below )
30,000.00
Stock in Federal R eserve Bank.
1.00
B anking H ouse and F ixtu res. .
None
Other Real E sta te ........... ..
. . .$3,911,346.16
U. S. Government S ecu rities. . .
(See Itemized L ist Below )
9,136,805.14
Cash, Sigh t E xchange and Due from Federal Reserve Bank. . . . . . 5,225,458.98
$15,955,491.53

LIABILITIES

P erso n n el officers of O m aha b anks
recen tly began w o rk in connection
w ith inclusion of n atio n al b an k em ­
ployes in th e federal social secu rity
system .
A tten d in g th e silver a n n iv e rsa ry
conference of th e F ed eral R eserve
B an k of K ansas City recen tly w ere W.
D. Hosford, Omaha; J. J. Thomas, Se­
w ard, N ebraska, and E . P. Brown,
Davey, N ebraska, all federal reserv e
directors.
T he estate of Victor B. Smith, form er
vice p re sid e n t of th e O m aha N ational
B ank, w ho died recently, w as a p ­
p raised a t $50,386.74 in p ro b ate co u rt
a t Omaha. A m ong th e assets w ere 190
sh ares of th e b a n k ’s stock, v alued a t
$35,150, an d 20 sh ares of F re m o n t N a­
tio n al B ank stock valued a t $1,500.
U nder Mr. S m ith ’s w ill, th e e n tire
estate goes to th e widow.
Anna T. Olsson, m an ag er of th e sav­
ings d e p a rtm e n t of th e Live Stock N a­
tio n al B ank of South Omaha, h as been
appo in ted a m em ber of th e p ublicity
com m ittee of th e A ssociation of B ank
W om en, a n atio n al o rganization com ­
posed of w om en w ho hold executive
posititons in b an k s and tr u s t com pa­
nies. She serves w ith nine o th er
w om en from vario u s p a rts of th e coun­
try .

.$

Capital Stock (C om m on )...........
Surplus ............. ...................
U ndivided Profits ........................
Unearned D iscou nt . . . . . . . . . . .
R eserve for T axes, Interest, E tc............................
D ividend Payable January 2, 1940........................
D e p o sits :
B anks ............... ...........................
Other D ep osits ........................

. . .$7,755,753.03
. . . 7,016,122.03

14,771,875.06
$15,955,491.53

u. s.

GOVERNMENT SECURITIES

D escript’n Ríate
M aturity
Bonds
4 ................................. .. , . .12-15-54-44
Bonds
2% ................................. . . 9-15-47-45
Bonds
3% ................................. . . 3-15-56-46
Bonds
414 ................................. ..10-15-52-47
Bonds
2 V2 ................................. . .12-15-53-49
M ise.......................................................

P ar V alue
$1,100,000.00
500,000.00
500,000.00
850,000.00
575.000.00
10,700.00

Book V alue
$1,197,469.55
547,584.26
557,810.82
1,001,688.80
595.499.98
11,292.75

Market V alue
$1,263,281.25
545,781.25
573,093.75
1.020,000.00
606,085.88
11,292.75

$3,535,700.00

$3,911,346.16

$4,019,534.88

P rem ium on U. S. G overnm ent S e c u ritie s a m o rtized to m a tu rity or option al date.

OTHER BONDS AND SECURITIES
Sarpy Co. School D ist. and other M isc. W arrants. .$15,029.73

Dec.
Dec.
Dec.
Dec.

30,
30,
30.
30,

$15,029.73

Capital and Surplus
Loans and Discounts
1933______$ 550,000.00_____ $1,566,262.23_____ $
1935______ 650,000.00_____ 2,035,087.78_____
1937_____
760.000.00_____ 5,640,905.35_____
1939______ 1,000,000.00_____ 6,773,655.66--------

$15,029.73

Deposits
4,910,106.01
10,140,900.52
12,874,403.86
14,771,875.06

We offer to our banking friends our facilities in cooperating w ith them in
the financial problems of the Live Stock, A gricultural and Commercial interests
of this Great Middle W estern area, and extend Season’s Greetings and best
wishes for a Happy and Prosperous New Year.
ALYIN E. JOHNSON, President.
T h is B ank H as N o A ffiliated C om panies
M em ber of F ederal R ese rv e S y s te m and F ederal D e p o sit Insurance C orporation

Northwestern Banker

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

500,000.00
500,000.00
53,480.98
6,103.82
116,531.67
7,500.00

January 1940

44

• NEBRASKA
play er th is season, th e new s w as ac­
cepted calm ly by his paren ts, Mr. and
Mrs. Nile C. K innick. Mr. K innick is
associated w ith th e F ed eral L and B ank
of Omaha.
“Our boys have been playing football
since th ey w ere fo u r y ears old,” said
N ile’s m other.
H is fa th e r played q u a rte rb a ck at
Iow a State College fo u r years, earned
tw o v a rsity le tte rs in addition to his
fresh m an num eral.

O

u

t - o

f - T

o

N E WS

U nder leadership of Alvin E. John­
son, p resid en t of th e Live Stock N a­
tional B ank of South Omaha, O m aha’s
C om m unity Chest drive w en t over the
quota recently for th e first tim e since
1931. The goal w as $553,417. The
am o u n t rep o rted pledged a t th e final
re p o rt luncheon w as $553,687.31, w ith
m ore m oney expected to come in.
T his w as th e first y ear th a t the
O m aha drive w as conducted w ith o u t
th e aid of an outside cam paign organ­
ization.

w

n

R

a

n

k

s

c o m p le te b a n k in g f a c ilitie s f o r p r o m p t a n d
eco nom ical h a n d lin g o f accounts in C hicago. W e
w o u ld ap p reciate th e o p p o rtu n ity o f serv in g you.

A N «

TRUST

2 0 8

S O U T H

COMPANY

IB a n k
of C h i c a g o

L A S A L L E

S T R E E T

{Member Federal Deposit Insurance Corporation)

■IIIIIIIIIIIIIIIIIII1IIIIIIIIIIIIIB
G IV E

..Illllllllllll... I...I...I...Illlllllllillllllllg

YOUR

P U B L IC

W H A T

IT

W A N T S!

I n s t a ll “PAYC”

1
=

1

( Pa y A s You C h e c k " )

=

THE NO-MINIMUM-BALANCE CHECKIN G PLAN

•

Creates Goodwill
• Increases Revenue
• Secures NEW Customers
E xperience has ta u g h t progressive bankers not to be

indifferent to the problem s of the m asses for through the
hands of the general public passes m ost of the w ealth
of the world. Stores, th eatres, railroads, industry, etc.,
would be of little use if it w ere not for the suppo rt of
“Mr. O rdinary M an.”
Solicit the goodwill and p atronage of all the people
in your com m unity by installing a “PA Y C” Checking
A ccount System . I t will pay cash dividends!

U n it e d

S t a t e s

1309-15 HOWARD STREET
Northwestern Banker

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

January 19k0

C h e c k
•

, fe d e li/
l c n d e ta ils
“ PAYC” is a copyrighted
plan, but no r o y a l t y is
charged. Regular prices are
maintained on ail supplies.
Write today.

B o o k

Ford E. Hovey, presid en t of th e Oc­
cidental B uilding and Loan A ssocia­
tion of Omaha and new ly-crow ned king
of Ak-Sar-Ben, w as “decorated” w ith
th e first bangle pin sold in Omaha th is
holiday season in connection w ith th e
an n u al C hristm as seal drive of the Ne­
brask a T uberculosis Association.
Om aha retail trade, b ank clearings
and building p erm its have scored sub­
sta n tia l gains recently. D uring a re ­
cent week, store volum e w as up 3 p er
cent, clearings n early $12,000, building
p erm it value m ore th a n $20,000, com­
p ared w ith th e previous week. F ig­
u res for th e w eek included: Clearings,
$39,562,989; b ank debits, $32,731,702;
building perm its, $61,250.

O u t-o f-to w n b an k s an d b an k e rs w ill find h ere

C it y N a t io n a l

It w as th e th ird larg est goal ever set,
and the num ber of individual subscrib­
ers w as th e larg est ever recorded, 54,633.

C o .

OMAHA, NEBRASKA

E pes Cory, 75, fo rm er em ploye of th e
Stock Yards N ational B ank of South
Om aha and th e old N ebraska N ational
B ank of Omaha, died recently a t th e
F ontenelle B oulevard hom e in Omaha.
He also had served as clerk in the state
banking d ep artm en t a t Lincoln.
He came to Omaha from Iow a in
1885, w as a ssistan t cashier of th e old
U nion Stock Y ards Bank. A fter it
w as consolidated w ith the South
Om aha N ational in 1911, he continued
for several y ears w ith th e newlyform ed Stock Y ards N ational. He
w orked for th e old N ebraska N ational
later and w as w ith th e N ebraska B ank­
ing D epartm ent from 1919 to 1932. Re­
tirin g because of ill health, he re tu rn e d
to Omaha. He w as a m em ber of th e
M asonic Lodge and of T angier Tem ple
of th e Shrine.
H is wife, one daughter, Mrs. C harles
Leopold, San Francisco, and a g ran d ­
son, H arold Saalfeld of B eatrice, Ne­
braska, survive.
Daniel J. Monen, Omaha N ational
B ank vice president, recently re ­
m ark ed th a t th ere is no m usic sw eeter
th a n th e baying of coonhounds on th e
tra il . . . even if th e trail is only th a t
of a skunk.
T h irty m en and boys and th ree
hounds w en t h u n tin g w est of M illard,
N ebraska, a few m iles w est of Omaha,
and one sk u n k w as all th ey got.
T he h u n t w as organized by G. E.
Nelson, M illard banker. M any of the
h u n te rs w ere Boy Scouts from Troop
80, n ear Omaha.
L a te r th ere w as an oyster supper a t
Oakdale school.

45
H ader, F o ster and B reslau. L a te r he
becam e presid en t of th e Citizens State
B ank of Pierce.

Talmadge Meeting
F o u r Johnson b an k ers atten d ed th e
Otoe county b an k ers m eeting a t Talm age recently. T hey w ere D. Clarke
Casey and F re d H. H oltgrew e of the
F irs t N ational B ank and C. D. H ahn
and Jam es P. Kelley of th e F irs t State
Bank. A banquet w as served, followed
by th e business session.

In Kansas City

H E F irs t N ational an d C ontinental
N ational B anks held th e ir an n u al
C hristm as p arties a fte r b an k in g ho u rs
on D ecem ber 22, an d th e N ational
B an k of C om m erce p a rty w as held
e a rlie r in th e week.
In charge of th e arra n g e m en ts for
th e C ontinental p a rty w as Miss L uella
Blank. E. U. G uenzel m ade a rra n g e ­
m en ts for th e F irs t N ational party ,
w hich w as for th e em ployes an d th e ir
fam ilies.
T he p a rty of th e N ational B ank of
C om m erce w as a d in n er affair, and
bingo w as played a fte r an exchange of
gifts.

T

R earg u m en t w as o rdered a t th e ses­
sion of th e suprem e co u rt beginning
J a n u a ry 15 of th e su it of R eceiver
L u ik a rt of th e C om m ercial S tate b an k
of F lorence a g ain st J. J. H eelan and
te n o th er stockholders for $10,000 cap­
ital stock liability. T he only p o in t to
be arg u ed is th e tim e w h en liability
a ttach es on b an k stock certificates.
T he defense w as th a t repeal of th e
co n stitu tio n al provision fixing such
liab ility by th e v o ters calls for th e dis­
m issal of all pending suits based on it,
ju s t as th e federal suprem e co u rt
abated all co u rt proceedings.
Tw o new directors of th e N ebraska
A ssociation of Co-operative C redit As­
sociations have been chosen w ith L. E.
Baffin of Crab O rchard, president, and
all officers w ere reelected.
T he new board m em bers are Henry
Tool, of M urdock, and Ed Brt, of
B runo. Tool succeeds A. Texley, of
C arroll, and B rt replaces E. J. Spieth,
of Elgin. Laflin, scheduled for re tire ­
m en t from th e board, w as renam ed.

G. D. Van Cleef, of Chester, w as re ­
elected vice p resid en t and Louis AVillie,
of Lincoln, w as chosen secretary-treas­
u rer. O ther board m em bers are: A. E.
P ailing of B yron, D. E. M agnuson, of
Chapm an, and A lbert Babbock, of
N o rth Loup.
Matthew Inhelder, 90, pro m in en t
Pierce resid en t for 47 years, died last
m o nth of old age com plications a t the
hom e of his daughter, Mrs. A. L.
Brand. He had been in failing h ealth
th e p ast 10 years, and bedfast several
m onths. H e w as one of Pierce coun­
ty ’s leading business m en. In 1892 he
purchased a h ard w are store w hich he
o perated m any years. He b u ilt five
b rick business blocks in Pierce.
In 1906 Mr. In h eld er en tered the
b an king business by buying an in te r­
est in th e Pierce S tate Bank. At one
tim e he w as presid en t of four ban k s in
P ierce county, located at Pierce,

The T en th F ed eral R eserve Bank, its
b ran ch staffs and directors held th e ir
silver an n iv ersary conference recently.
Jo h n N. Peyton, presid en t of the
M inneapolis Bank, attended. Direc­
to rs p resen t included W. D. Hosford,
Omaha; J. J. Thom as, Sew ard, Neb.,
and E. P. Brow n, Davey, Neb.

Changes in
Continental National
On Ja n u a ry 1, J. O. Peck of Creigh­
ton, N ebraska, becam e vice p resid en t
and supervisor of th e co u n try bank
division of th e C ontinental N ational
B ank of Lincoln. F re d S. A ldrich,
vice presid en t of th e bank, w ho has
heretofore been in charge of co untry
b ank business, becomes m anaging di­
recto r of th e b a n k ’s personal loan de­
p artm en t. These prom otions w ere an ­
nounced recen tly by T. B. Strain, p resi­
dent.
T he personal loan d ep artm en t has
developed to such an extent, Mr. S train
said, th a t it dem ands th e a tten tio n of

Efficient
Correspondent Service
with
a
"P erso n a l T ouch"

(oNTIN|NTAL RATIONAL
r .„

YO UR STATE BANKERS A SSO CIATIO N
O FFICIA L SA FE, V A U L T AN D
TIM ELOCK EXPERTS

5 am K
L IN C O L N

Member Federal Deposit Insurance Corporation

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

Northwestern Banker

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

January 19^0

46

• NEBRASKA
a senior officer of th e bank. Mr. Aidrich w as selected for th e place because
of his m any y e a rs’ service, d u rin g
w hich tim e he has w orked in every de­
p a rtm e n t of th e bank, being prom oted
to th e vice presidency tw o y ears ago.
During the p ast five y ears he has been
in charge of th e co u n try b an k service.
A son of th e late fo rm er G overnor
C. H. A ldrich, he cam e to Lincoln
from David City in 1911. He is a g rad ­
uate of L incoln H igh School, and a t­
tended th e U n iv ersity of N ebraska
th ree years.

NEWS

Mr. Peck, w ho goes to Lincoln from
Creighton, is w ell know n to th e Neb­
rask a banking fratern ity . In M arch
1929 he w as appointed state b ank
exam iner, resigning w hen he organ­
ized the A m erican N ational B ank at
C reighton in 1931.
A n ative of M issouri, he g raduated
from DeKalb, M issouri, H igh School
in 1917, and w as em ployed by th e A m ­
erican N ational B ank a t St. Joseph,
M issouri, u n til Septem ber, 1918, w hen
he accepted a position w ith th e B anks
of D aw son a t Dawson, N ebraska, re-

m aining th ere u n til his ap p o in tm en t
as b ank exam iner.
In 1926 Mr. Peck w as presid en t of
th e R ichardson C ounty B ankers Asso­
ciation, and from 1927 to 1929, inclu­
sive, w as secretary of group one,
N ebraska State B ankers A ssociation.
A t C reighton fu rth e r recognition
w as heaped upon him by the banking

Our 45th Year
The New Y e a r finds the Live Stock
N ational Bank of Sioux C ity in its
45th y e a r. H isto ric a lly , this bank
w as serving the Sioux C ity trad e
a re a before the sinking of the Maine,
the Spanish-Am erican W ar, Theodore
Roosevelt and San Juan H ill.
This mature experience is yours
fo r the asking. Let us place it at
your disposal fo r the handling of
your items in Sioux C ity .

O F F IC E R S
C. L. Fredricksen, President
M. A. W ilson , V ice President and Cashier
W . G. N elson , A ssista n t Cashier
W . C. Schenk, A ssista n t Cashier
L. W . R oss, A ssistan t Cashier
D IR E C T O R S
C. R. M cK enna, President, Johnson B iscu it Co.
B. L. Sifford, A ttorney, Sifford & W adden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson , V ice President and Cashier
H . C. B o sw ell, Secretary-Treasurer,
W estern Contracting Corporation

j. o. PECK

fratern ity . In 1934-35 he w as presi­
den t of group three, and a m em ber of
th e state executive council from 1935
to 1937, inclusive. D uring the la tte r

F R E D A L D R IC H

y ear he was* council chairm an, and in
1936, p resid en t of the N orth C entral
N ebraska Regional Conference.
A c h a rte r m em ber of th e C reighton
Lions Club, he w as th e first president,
serving from 1932 to 1934. He also is
a m em ber of th e N orfolk E lks Lodge,
and of the Plainview C ountry Club.

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Federal Reserve Bank of St. Louis

47

Independents Meet
B anking problem s w ere discussed at
a d in n er m eeting of th e Independent
B ankers of th e Black H ills at th e cabin
of H. J. W alker in V anocker canyon,
five m iles south of Sturgis. Thirty-five
b an k ers w ere present.

SOUTH
DAKOTA
NEWS
W ILLIAM C. R EM PFER
President
Parkston

O perate Revillo Bank
A re c e n t tra n sa c tio n approved by
th e federal deposit in su ran ce corpora­
tio n and arra n g e d b etw een th e F a rm ­
ers and M erchants B ank of W aterto w n
and th e D akota State B ank of Milb a n k has resu lted in th e la tte r ’s tak in g
over th e Revillo bank.
Because Revillo is situ ated in G ran t
county close to M ilbank it is believed
th a t th e new a rra n g e m en t w ill p erm it
of b e tte r ban k in g service to Revillo
resid en ts. The new ly acquired in sti­
tu tio n is to be kn o w n as th e Revillo
b ra n c h of th e D akota S tate Bank.
F re d P hillippi, cash ier of th e Milb an k bank, w as in stru m e n ta l in a r­
ra n g in g for th e tra n sfe r. Miss Agnes
Jo h n so n of Revillo is to be in charge
of th e b a n k a t th a t place.

Liquidation
F in a l liquidation of th e Sioux F alls
T ru s t & Savings Bank, w hich closed
J a n u a ry 14, 1924, w as rep o rted by
E rlin g H augo, state su p e rin te n d e n t of
banks.
U n d er an order, th e state b an k in g
d e p a rtm e n t w ill pay depositors a divi­
dend of 3.454 p e r cent, am o u n tin g to
ap p ro x im ately $120,000.
H augo said dep o sito rs’ certificates
w ould be received a t th e state ban k in g
d e p a rtm e n t offices im m ediately and
th e m oney w ill be read y for d istrib u ­
tion.

GEORGE M. STAR R IN G
Secretary-Treasurer
Huron

com m unities is evidenced by th e re ­
su lts of a survey of ban k lending activ­
ity announced by th e A m erican B ank­
ers A ssociation indicating th a t the
com m ercial banks of th e state m ade
m ore th a n 100,000 new loans totaling
$19,000,000 to business firm s and indi­
viduals du rin g th e first six m onths of
1939, an d renew ed 40,000 o u tstanding
loans to taling $15,000,000 d uring the
sam e period.
T hese estim ated figures are based on
re p o rts received from 66 banks in
South D akota holding m em bership in
th e A. B. A., or 40 p er cent of th e 166
com m ercial banks in th e state, and al­
low ance is m ade for th e concentration
of lending activ ity in R apid City and
Sioux Falls.
T he 66 banks rep o rted th a t th ey
m ade 47,516 new loans to taling $9,157,525 betw een Ja n u a ry 1 and Ju n e 30,
1939, and renew ed 18,351 outstanding
loans to taling $8,191,901. In addition,
th e y rep o rted 439 new m ortgage loans
to hom e ow ners and o ther real estate
ow ners totalin g $739,762.
T he average n u m ber of new loans
per b an k w as 720, and th e average new
loan w as $193.
T he average n u m ber of renew als p er
b an k w as 278, and th e average renew al
w as for $446.
T he average nu m b er of new m o rt­
gages p er b an k w as 7, and th e av er­
age m ortgage w as for $1,685.

Election

Official Changes

A t a m eetin g of th e board of direc­
to rs of th e S anborn C ounty B ank,
W oonsocket, A. R. B ratsberg, a m em ­
b er of th e board, w as elected p re si­
dent, a vacancy w hich w as m ade
th ro u g h th e d eath of R. E. H azen.
Jam es H all w as reelected vice p re s­
ident; T. M. B risbine reelected cashier,
an d Miss Ire n e H azen w as elected as
th e new m em ber of th e board of di­
rectors.

Due to th e death of th e late B ert M.
K endall, w ho w as a ssistan t m anager
of th e G regory b ran ch of th e N o rth ­
w est S ecurity B ank of Sioux Falls,
th e follow ing changes have been m ade
in th e positions of th e em ployes of the
bank:
W alter Johnson has been prom oted
to th e position of a ssistan t m anager,
C. F. B ain has been advanced to the
loan and collection d ep artm ent, Dale
Scheinost w ho has been a bookkeeper
tak es Mr. B ain’s position as teller, and
D w ight K endall, has been given a po­
sition in th e bookkeeping departm ent.

100,000 New Loans
T h a t b anks in South D akota are ac­
tiv ely serv in g th e credit needs of th e ir

Follow ing a w ild duck dinner, the
group talked of cooperation betw een
banks, w ays and m eans of im proving
business relations and m eeting com pe­
tition, th e w age and h o u r law and so­
cial security. The m eetings started
about tw o y ears ago, and since have
been enlarged u n til nearly every in ­
dependent b an k in th e H ills p artici­
pates. B anks rep resen ted at th e m eet­
ing were:
R apid City N ational Bank, U nder­
wood S tate Bank, F irs t S tate B ank of
Buffalo, B ank of Belle Fourche, F a rm ­
e rs’ State B ank of Dupree, F a rm e rs’
State B ank of F aith , M iners’ and M er­
c h a n ts’ Savings B ank of Lead, and
B ear B utte V alley B ank of Sturgis.

Promotions
Of in te re st to resid en ts of H u ro n and
Sioux F alls are year-end prom otions
in th e staff of th e N ational B ank of
South Dakota. D irectors of th e bank
have elected A. E. Schnad of H u ro n a
vice presid en t and have advanced Ole
H. B ondhus, auditor, to th e position
of a ssistan t cashier. No change in lo­
cation for e ith er m an is involved. Mr.
Schnad w ill continue in charge of th e
H u ro n office and Mr. B ondhus w ill be
located in Sioux F alls as at present.
Mr. Schnad began his ban k in g ca­
re e r in Miles City, M ontana, in 1923.
A fter eleven y ears w ith th e F irs t N a­
tional B ank of th a t city, four of them
as assista n t cashier, he m oved to
H u ro n as cashier of th e F irs t N ational
B ank of H uron. Since Jan u ary , 1938,
w hen th e F irs t N ational B ank m erged
w ith th e N ational B ank of South Da­
kota, Mr. Schnad has been m anager
of th e H u ro n office.
Mr. B ondhus en tered th e banking
business in 1931. A fter service as as­
sista n t cashier of th e F irst N ational
B ank of H eron Lake, M innesota, and
later of th e F irs t N ational B ank of
Pipestone, M innesota, he m oved to
Sioux F alls in Ju ly of last y ear as
au d ito r of th e N ational B ank of South
Dakota.
L ike th e N ational B ank of South,
Dakota, th e F r s t N ational B anks of
H eron Lake, P ipestone and Miles City
are affiliated w ith F irs t B ank Stock
Corporation.
Northwestern Banker


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Federal Reserve Bank of St. Louis

January 19i0

48

O

Tuesday, D ecem ber 12, this bank cele­

past perform ance is a reasonable guide to the

brated its 75th anniversary. T he history o f

future. Hundreds o f banks and bankers k n ow

h ow the oldest bank in M inneapolis became

from experience the m erits o f First N ational

the largest is o f sentim ental interest chiefly

correspondent service. D uring the next 75

to us here in the bank. Our depositors in par­

years this bank w ill be no less ready than it

ticular and the public in general want to

has been in the past to cooperate with other

k now “what o f the next 75 years?”

banks to their ow n advantage and that o f the

N o on e can see ahead for even a year, but

territory they serve.

n

FIlìST NATIONAL BANKk TRUST COMPANY
of Minneapolis
MEMBER FEDERAL

AFFILIATED


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Federal Reserve Bank of St. Louis

WI TH

DEPOSIT

FIRST

INSURANCE

BANK

CORPORATION

STOCK

CORPORATION

49
Mr. P eterso n has spent over 23 years
in banking. H e w as cashier of the
B eroun State B ank of Pine county six
and one-half y ears before accepting
th e cashiership of th e S tate B ank of
Mora, a position he held over sixteen
y ears u n til th e b an k consolidated w ith
th e K anabec S tate B ank last spring.
Since th e n he has been assistan t
cashier of th e la tte r bank.

M IN N E S O T A

NEWS
A. B. LATHROP
President
St. Paul

W ILLIAM DUNCAN, Jr.
Secretary
Minneapolis

Died In Fulda
F u n eral services w ere held recently
for Dr. Jam es McCrea, 76, pioneer p h y ­
sician of Fulda. He w as bo rn at
F ran k to w n , Canada, Septem ber 25,
1863, and came to M innesota in 1894.
He w as active in th e m anagem ent of
th e Citizens S tate B ank since its be­
ginning in 1908 and p resident for
m any years. Surviving are his w idow
and tw o sisters.

m ercial banks of th e state m ade m ore
th a n 400,000 new loans to taling $250,W ith an “open h o u se” recently, th e
000,000 d u rin g th e first six m onths of
F irs t N ational B ank of R ochester—
1939 and renew ed m ore th a n 250,000
oldest co n tin u in g b u siness in stitu tio n
o u tstanding loans to taling m ore th a n
in th e city—celebrated th e seventy$175,000,000 in th e sam e period.
fifth a n n iv e rsa ry of its founding.
T hese figures are based on th e re ­
Days of 1864, th e y e a r it w as found­
p o rts of 365 banks, or 54 p er cent of
ed, w ere recalled a t th e open house
th e 682 com m ercial banks in th e state
Buys Bank Stock
th ro u g h an histo rical exhibit, arran g ed
Sale of all b u t a few shares of the
w ith m em bership in th e A. B. A., sent
by Mrs. B unn T. W illson. Costum es of
to th e association in reply to its ques­ ban k stock held by Mrs. A ngeline
th a t period w ere w o rn by w om en b ank
Souba, w idow of th e late E m il G.
tio n naires, and are ad justed to allow
em ployes d u rin g th e late aftern o o n
for the concentration of lending activ­ Souba, head of th e F irs t N ational B ank
and evening.
of H opkins for m any y ears previous to
ity in M inneapolis and St. Paul.
A m ong p ro m in en t nam es in th e sev­
T he 365 rep o rtin g banks state th a t his death last Ja n u a ry 5, w as an ­
eral boards of d irecto rs of th e b an k
th e y m ade 303,560 new loans to taling nounced recen tly by F ra n k H. Kriz.
d u rin g its h isto ry are: George H ealy,
T he holdings of Mrs. Souba w ere
$189,115,858 betw een Ja n u a ry 1 and
W a lte r H u rlb u tt, George Baihly, Mrs.
Ju n e 30, 1939, th a t th ey renew ed purchased by W alter Zastrow , cashier
F ra n c e s S. Cook, Jo h n R. Cook, Jr.,
141,492 already o u tstanding loans for th e p ast ten y ears of the W ayzata
R oberson C ornforth, H a rriso n Doug­
am ounting to $128,464,595, and th a t S tate Bank. Mr. Z astrow w ill become
lass, Jam es N. Coe, F ra n k E. Gooding,
th ey m ade 2,839 m ortgage loans on active in m anagem ent of th e b an k im ­
C. F. M assey, A. L. Ober, A. W. Stinchhom es an d o th er p ro p erty aggregating m ediately follow ing th e ann u al direc­
field, J. A. Melone, George W eber, R.
to rs ’ m eeting on Ja n u a ry 9, according
$6,000,496.
J. Griffin, Mrs. May Cook Gooding, A.
The average nu m b er of new loans to Mr. K riz’s announcem ent.
C. Gooding, B u rt W. E ato n and J. H.
T hough Mr. Z astrow has acquired
per b an k w as 832. The average n u m ­
K ahler, w ho w as ch airm an of th e
ber of loans renew ed p er b an k w as stock holdings equal to those of Mr.
board from J a n u a ry 8, 1924, u n til
388, and th e average n um ber of m o rt­ Kriz, several o th er local people w ere
J a n u a ry 19, 1931.
allowed also to purchase sm all pieces
gage loans p er b an k w as eight.
P re se n t d irecto rs of th e bank, be­
The average new loan w as for $623. of Mrs. Souba’s stock du rin g th e course
sides th e officers—Mr. H ayden, Mr.
The average loan renew al w as for $908, of th e tran sactio n w hich b ro u g h t Mr.
F iegel and Mr. B ezoier—are: Mr. E a t­
and th e average m ortgage loan w as Z astrow into th e H opkins b anking pic­
on, C. M. Judd, F. W. S h u ster and Roy
ture.
for $2,114.
W atson.
In addition to lending on individual
applications, banks in th e larg er cities Celebration
m ain tain for reg u lar established b u si­
Grand Opening
T he N o rth w estern N ational B ank &
T he F a rm e rs S tate B ank a t U psala ness borrow ers w h at are know n as T ru st Com pany of M inneapolis gave
held th e ir g ran d opening to dedicate “open lines of cred it” in specific its an n u al C hristm as p a rty to th e 825
th e ir new b an k building on Monday, am ounts, available at all tim es to such officers and em ployes in th e big bank
D ecem ber 18, 1939, com m encing a t 10 borrow ers. Open lines of credit in the lobby, adorned w ith C hristm as trees
am ount of $169,558,007 w ere m ain ­ and o ther decorations. T he festival
o’clock a. m.
T he b a n k b uilding is now com plete tained by 33 banks. H ow ever, these sta rte d w ith a show ing of th e 1939
including new equ ip m en t and fu rn ish ­ banks stated th a t only $47,648,653, or M innesota football pictures, followed
28 p er cent of th is credit, w as being by a buffet supper. The en terta in m e n t
ings.
Coffee and donuts w ere served used as of Ju n e 30.
included a Dr. I. Q. “m en tal b a n k e r”
th ro u g h o u t th e day to all v isito rs and
te st conducted by Bob de H aven, of
new 1940 calendars w ere given to p a­ G oes To Cambridge
radio statio n WTCN. A nother n u m ber
tro n s of th e bank.
C harles T. P eterso n has accepted a w as some dance exhibitions and in ­
position as cashier and m anager of form al dancing followed. Shirley S.
th e People’s S tate B ank of Cambridge. Ford, presid en t of th e bank, delivered
400,000 New Loans
C ountering a ssertio n s th a t b anks He has purchased a substan tial block a C hristm as m essage to th e staff. Joe
are not lending, th e A m erican B ankers of stock in th e in stitu tio n and becomes M ulcahy w as m aster of cerem onies,
A ssociation has p ublished th e resu lts a m em ber of its board. Mr. P eterson w hile L aw rence P eterso n w as general
of a su rv ey of b an k lending activ ity severed his connection w ith th e K ana­ ch airm an of a com m ittee of 23 in
charge of arran g em en ts.
in M innesota estim atin g th a t th e Com­ bec S tate B ank of Mora.

"Open House"

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1940

50

Resigns

'

W esley Carlson has resigned his po­
sition as a ssistan t cashier at th e F irs t
N ational B ank of Carlton, and has
gone to St. Cloud, w here he en tered
th e state teach ers’ college. H e plans
to com plete his course in civil engi­
neering.

S t a t e m e n t o f C o n d itio n

T

F

h e

ir s t

OF

n a t io n a l

S A IN T

B

a n k

Heads Group
C. C. T rax ler w as chosen president
of th e Le S ueur County B ankers As­
sociation. B ruce R adem acher of Waterville is vice presid en t and C. Meislah n of Cleveland, secretary-treasurer.

PAUL

as o f
D ecem ber J O ,

R

1939

Dies in Elbow Lake

e so u r c e s

Cash on H and and Due from Banks

$74>999>78i.2i

U. S. Governm ent Securities

2 4 ,908 ,7 18 .8 8

Bonds and Securities

3 , 1 3 2 ,328 .78

Loans and Discounts

4 9 ,9 7 5 ,684.78

Interest Earned but not Collected

1 8 7 ,32 4 .7 0

Custom ers’ Liability on Account of Acceptances,
Letters of Credit and Foreign Bills

6 5 ,3 1 7 .3 9

Stock in Federal Reserve Bank

3 6 0 ,000.00

Bank and Office Building

3 , 50 0 ,000.00
1 1 5 7 , 1 2 9 , 15 5 .7 4
L

ia b il it ie s

Capital Stock

$6 ,0 0 0 ,000.00

Surplus

6 ,0 00 ,000.00

Undivided Profits

1 ,7 0 1 , 24 7.6 3

Unallocated Reserves for Losses

4 4 7 , 524 .54

Reserve for Taxes and Interest

5 5 0 ,9 42.36

Reserve of M anufacturers and Others on
N otes purchased from them

58 9 ,6 2 5 .5 0

Change in Officers

Discount Collected b u t not Earned

6 8 , 296.03

Acceptances, Letters of Credit and Foreign Bills

6 5 ,3 1 7 .3 9

Deposits

1 4 1 ,7 0 6 ,20 2.29
1 1 5 7 , 1 2 9 , 15 5 .7 4

P resident

Richard C . Lilly
Chairm an , B oard o f Directors

Frederic R. Bigelow

Member Federal Deposit Insurance Corporation
A F F I L I A T E D

Northwestern Banker

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Federal Reserve Bank of St. Louis

W IT H

F I R S T

January 19b0

B A NK

A nnouncem ent w as m ade recen tly
of th e death of H en ry Sam pson, w ell
know n Elbow Lake banker. Mr. Sam p­
son died at F airv iew H ospital, M inne­
apolis, th e re su lt of a stroke.
H en ry Sam pson w as born in Colum­
bia county, W isconsin, F e b ru a ry 9,
1865, and his boyhood w as sp en t on
th e fam ily farm located ju st outside of
Rio. H e received his education at th e
d istrict school, and later attended high
school a t M ilton and Madison. He
cam e to M innesota in 1887 and im m edi­
ately becam e associated w ith th e late
H arold T horson in th e operation of a
p riv ate b an k at Ashby. T he follow ing
year he becam e cashier of th e B ank
of Elbow Lake, w hich position he con­
tinued to hold u n til he w as advanced
to th e presidency upon th e re tire m e n t
of H arold T horson. He w as also in ­
terested in a n u m ber of o ther ban k s
and a t th e tim e of his death w as an
officer of th e Citizens S tate B ank of
B arrett, th e S tate B ank of K ensing­
ton and th e Citizens State B ank of
B randon. He has m ade his hom e in
Elbow Lake continously since 1888.

STOCK

C O R PO R A T IO N

Changes in th e official staffs of p ro ­
duce S tate B ank and H ennepin S tate
Bank, both affiliates of F irs t N ational
B ank and T ru st Company, M inne­
apolis, have been announced.
G. D. Lee, vice president, cashier
and d irector of H ennepin State, re ­
signed to assum e th e sam e posts at
Produce. H e succeeds A. H. T im m er­
m an, w ho died recently.
R. E. H asselberg, on th e staff at
Produce for 12 years, w as advanced
from th e collection d ep artm en t to as­
sista n t cashier.
G. E. Rydell, presid en t of R ydell
Clothing com pany, and a directo r of
H ennepin State, w as nam ed a vice
president. W alter Fafro, fo rm erly as­
sista n t m anager of F irs t N atio n al’s
N o rth Side office, w as elected cashier
of H ennepin State.

51

Twin C ity News
m en t departm ent, succeeding th e late
W. L. M itten, vice presid en t and
Special Correspondent
form er m anager, w ho died M arch 3,
1939.
Mr. L uscher has been in th e organi­
LM ER L. W ILLIA M S w as slated zation since 1927, w hen he took a posi­
to be elected p resid en t of the tio n w ith th e tru s t d ep artm en t of th e
T w in City Bond Club a t th e a n ­ M innesota L oan and T ru st Company.
nual m eeting a t th e U n iv ersity Club, L a te r on he w as tra n sfe rre d to the
St. Paul. Mr. W illiam s, vice president, .secu rities d ep artm ent, w hich w as suc­
for th e p ast year, succeeds W illiam A. ceeded by the Banc N orthw est Com­
Smith.
pany. He joined th e in v estm en t de­
O thers on th e slate proposed by th e
p a rtm e n t of N o rth w est B ancorpora­
nom in atin g com m ittee include Edwin tion Dec. 1, 1933.
White, for vice president, and O. Jack
N am ed a ssistan t m anager of the de­
Talbot for secretary -treasu rer.
p a rtm e n t w as Arthur R. Evans, for­
N om inated for th e b oard of gov­ m erly of LaCrosse, Wis., w ho came to
ern o rs for tw o y e a r term s w ere
th e inv estm en t d ep artm en t in 1931
George W. Dean, Ralph H. Grove, W il­ from Bacon, W hipple an d Company,
liam W. Lew is, Fred C. Goth, Theodore Chicago inv estm en t bankers.
H. Koch an d Herbert K. Moss. T hree
w ere to be elected, all from St. Paul.
A pproxim ately 800 officers, directors
M em bers of th e nom in atin g com m it­ and em ployes of F irst N ational B ank
tee included E. C. W illiams, L. L. Quist, & T ru st Company, M inneapolis, a t­
R. H. Grove, M. H. Gibbs and G. W. tended th e b an q u et m ark in g th e sev­
Dean.
enty-fifth an n iv ersary of th e organi­
zation of th e city ’s larg est and oldest
\ on E. Luscher has been nam ed by
bank.
directors of N o rth w est B ancorporation
F ollow ing a dinner, Lyman E. Wake­
to th e post of m an ag er of th e in v e st­ field, president, and Clive T. Jaffray,
B y JA M E S M. SU TH ER LA N D

E

E

m p ir e

N

a t io n a l

B

a n k

and T

form er presid en t and p resen t p resi­
dent of F irst B ank Stock C orporation,
spoke. An e n te rta in m e n t program fol­
lowed. Seated at th e head table w ith
Mr. Jaffray and Mr. W akefield w ere
18 young w om en b an k em ployes,
dressed in costum es of 75 y ears ago.
The b ank lobby a t th e tim e of the
observance date w as filled w ith flow­
ers, th e gifts of num erous friends and
organizations in all p arts of th e coun­
try.
M arquette N ational B ank and affili­
ated in stitu tio n s Chicago-Lake and
U n iversity S tate Banks, held th e ir an ­
nual C hristm as p a rty Dec. 19. More
th a n 100 persons attended.
Gordon E. Larkin w as toastm aster.
Speakers w ere Ralph W. Manuel, p re s­
ident, and William F. Kunze, vice
president.
Irene Swanson w as in
charge of arrangem ents.
Q uarters of F irs t N ational B ank &
T ru st C om pany’s personal loan de­
p a rtm e n t have been enlarged to accom ­
m odate th e volum e of business, w hich
has doubled in the p ast year.
E. C. Maddaus is m anager, w hile as­
sistan ts are A. C. Johnson, Ralph Ras­
mussen, Robert O’Brien and E. L.
Lahtinen. FH A an d appliance financ­
ing are handled by Linus Fisher.

rust

C

o m p a n y

ST. PAUL, M INNESOTA
Affiliated with Northwest Bancorporation
Statem ent of Condition as of December 30, 1939
.
RESOURCES
Cash in Vaults, due from Federal Reserve Bank and other Banks ........ ....................................................... $3,542,858.42
United States G overnment Securities—Direct and Fully G uaranteed— Due within
3 y ea rs.................
’285,100.00
United States G overnment Securities—Direct and Fully G uaranteed—Due after 3 but within 5 y ea rs..
256,550.73
United States Government Securities—Direct and Fully G uaranteed— Due after 5 but within 10 years.
285,637.90
United States Government Securities—Direct and Fully G uaranteed—Due after 10 but within 15 years 262,673.93
Municipal Bonds—Due w ithin 3 y ea rs......................................................................................................
351 358 65
Municipal Bonds—Due after 3 but within 5 y ea rs........................................................................................................
16L080.61
Municipal Bonds—Due after 5 but within 10 y ea rs..........................................................................................
29 732.20
Municipal Bonds—Due after 10 y e a rs......................................................................................................
15 000.00
O ther Bonds and Securities........................................................................................................................
167 545 76
Loans and D iscounts............................ ................................................................................... ’ j ’ ’
.................. 4 086 003 55
Stock in Federal Reserve B an k ........................................................................ .................................................................. ’ ig ’soo 00
In terest E arned but N ot Collected............................................................................ \
.
20 376 38
Furniture and Fixtures and Safe Deposit V au lts..........................................................28 643.03
TO TA L RESOURCES

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

$9,512,061.16

L IA B IL IT IE S

Capital Stock—Common .................................................................................................................................................... $ 250,000.00
Capital Stock—Preferred .......................................................... .......................................................................................
205 000^00
Surplus .......................... .................................................................................................................................. ’. ! ! ! ! ! ! ! . ’
1 6o!ooo!oo
Undivided Profits and Reserves............................................................................................................................
103 61318
Reserved for Dividends Payable in Common Stock..................................................................................................
35|000.00
Reserved for Taxes, Interest, and Accrued Expense..................................................................................................
18^052.68
Discount Collected but Not Earned................................................................................................................ ]][ ' ' ' |
54947124
Deposits:
.......................... . ’
’
D.emand .......................................................................................................................................... $6,753,414.34
Tlme ................................................................................................................................................ 1,932,033.72
Total Deposits

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

8,685,448.06

TO TA L L IA B IL IT IE S ........................................................................................................................

$9,512,061.16

A L E A.

H IG H L A N D ,

P r e s id e n t

M em ber Federal D ep osit Insurance Corporation


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

N orthwestern Banker

January 1940

52

Named Director
B urch N. Bell of T w in City F ederal
Savings an d L oan A ssociation, M inne­
apolis, has been nam ed a d irector for
class A m em bers of th e F ed eral Home
L oan B ank of Des Moines.
Mr. Bell w as one of th ree directors
nam ed for tw o-year term s a t th e an ­
n u al election. O thers are L. A. Boyles,
Y ankton, South, Dakota, and J. R.
Loomis, Red Oak, Iowa.

STA TEM EN T OF
C O N D IT IO N
D E C E M B E R 30, 1939

Former Banker Dies
H. W. Mielke, 66 y ears old, prom i­
n e n t citizen of B ird Islan d for 35
years, died a t his hom e. U ntil 1929 he
w as cashier and p resid en t of th e R en­
ville County S tate B ank there.

RESOURCES
Builds Addition
Loans and Discounts-------$2,475,703.27
Vaults and Fixtures------------------------ 14,764.25 A new 30-foot addition is being built
a t th e re a r of th e F irs t N ational B ank
Other A ssets___________
35,289.59
a t W alker to take care of th e firm ’s ex­
U. S. Gov’t
pan d ing business.
B o n d s ___$1,026,732.09
The new building is of brick and tile
co n struction and w ill provide space for
Other Bonds
and Se­
a d epositors’ vault, additional office
curities
568,844.21
space and a d irecto rs’ room.
Cash and Due
A need has been felt for several
from banks 2,608,617.97 4,204,194.27

years, according to P resid en t C. J. Elsenpeter, for adequate space to give

TOTAL____________$6,729,951.38
LIABILITIES
Capital Stock—
Common ___________ $ 250,000.00
225,000.00
Surplus ______________
Reserves and
Undivided P ro fits____
23,956.23
Other L iab ilities_______
18,521.04
Deposits _____________ 6,212,474.11
TOTAL___________ $6,729,951.38

OFFICERS
J. F. R ingland .................. President
J. C. Moore................ Vice President
A. A. B ib u s ..... Vice Pres, and Cash.
J. M. K a n e .................. Asst. Cashier
J. G. McGarraugh ..... A sst. Cashier
C. W. Messeng er ................... Auditor

STOCK YARDS
NATIONALBANK
SOUTH ST. PAUL, MINNESOTA
M em ber F ederal D eposit Insurance
C orporation

Northwestern Banker

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

January 19W

privacy to custom ers. W ith th e ex­
pansion of th e business in th e last few
years, th e b ank found it necessary to
m ake th e im provem ents.

Permit
A uthorization to th e L ib erty L oan
and T h rift Com pany of St. Cloud to
tra n sa c t business as an in d u stria l an d
th rift com pany has been g ran ted from
th e state banking departm ent.

Central Hanover
At a recen t m eeting of th e board of
tru stees of C entral H anover B ank and
T ru st Company, th e follow ing officers
w ere appointed assista n t vice p resi­
dents: R ichard S. C arr of th e B ank­
ing Division, form erly assista n t secre­
tary; J. F ah y s Cook of th e 43rd S treet
Office, form erly assista n t tre a su re r;
R ector K. Fox, Jr., G. K enneth Handley, R obert M. Lovell and W illiam R.
M cAlpin of th e P ersonal T ru st De­
p artm en t, and Jam es T. H arrig a n and
E dw ard G. H erendeen of th e Corpo­
ra te T ru st D epartm ent, form erly as­
sistan t secretaries.
Jam es B. Bostick, George L. K auer,
R obert B. O’B rien, E dw ard C. R eu ter
an d F ra n k A. Shaw w ere appointed
a ssista n t secretaries.

53

NORTH
DAKOTA
FR A N K R. SCOTT
President
Fargo

NEWS

No Changes
T h ere w ere no new banks, changes
of nam e or location or closings d u rin g
th e m o n th of D ecem ber, 1939.
The F a rm e rs S tate B ank of E rie,
E rie, N o rth D akota, w e n t into volu n ­
tary liq uidation on O ctober 1, 1939, and
has now com pletely discharged its de­
posit liab ility and discontinued b u si­
ness.

Remodeled
Com plete rem odeling of th e in te rio r
an d in sta lla tio n of new fixtures has
been com pleted by th e F irs t S tate
B ank of M unich, m aking th e in s titu ­
tio n ’s facilities stric tly m odern.
T he m ost strik in g im pro v em en t is
th e in stallatio n of a new co u n ter of th e
new low type, consisting of m arble
w ith oak w oodw ork. The service w ill
be speeded up w ith th e in stallatio n of
four cages in place of two. A new
posting m achine of th e latest type has
also been installed.
L. E. C allahan is p resid en t of th e
M unich b a n k and J. J. H illm an is
cashier. Y. A. Nelson, vice president,
operates th e b a n k ’s S tark -w eath er ex­
change.

Dies In Rolla
F ra n k J. M euw issen, 58, p ro m in en t
in th e b u siness life of R olla for th e
p ast 36 years, died of a h e a rt a tta c k re ­
cently. He had been in ill h ealth for
m ore th a n a year.
A fter b rief rite s a t th e hom e, th e
body w as sen t to M inneapolis for fu ­
neral services and burial.
M euw issen w as b orn a t Cologne,
M innesota, O ctober 25, 1881. H e cam e
to Rolla in 1903 and w as connected
w ith th e S tate B ank of R olla u n til
1917, w h en he en tered th e real estate
and in su ran ce business, w hich he con­
ducted u n til his death. He w as city
assessor of Rolla. F ra te rn a l affiliations
included A. O. U. W.

C. C. WATTAM
Secretary
Fargo

com m unities is indicated by th e re ­
su lts of a survey of b an k lending ac­
tiv ity announced by th e A m erican
B an k ers A ssociation show ing th a t th e
com m ercial ban k s of th e state m ade
m ore th a n 70,000 new loans totaling
$15,000,000 to business firm s and indi­
! 939 A G ood Year
viduals d u rin g th e first six m onths of
N ot since 1929 has N orth D akota
1939, and renew ed 20,000 outstanding
loans to taling $10,000,000 du rin g th e enjoyed so good a y e a r from a stan d ­
point of farm income, as w as ex­
sam e period.
T hese figures are based on rep o rts perienced in 1939, nor has th ere been
received from 58 banks in N orth Da­ occasion for so g reat an optim ism as a
kota holding m em bership in th e new y ear approaches. T his statem en t
A.B.A., or 33 per cent of th e 173 com­ headlines th e 15th ann u al economic
m ercial banks in th e state, and m ake review released by th e G reater N orth
allow ance for th e concentration of D akota Association.
“The p ast y ear has bro u g h t very
lending activ ity in Fargo.
The 58 banks rep o rted th ey m ade su b stan tial increases in farm income,
25,745 new loans to taling $6,143,227 be­ g reatest since 1929, increased livestock
tw een Ja n u a ry 1 and Ju n e 30, 1939, on farm s, reductions in debts and
and renew ed 8,737 o u tstanding loans taxes, increased p riv ate building,
to taling $4,305,201. In addition, th ey boosted retail sales, g re a te r freig h t car
rep o rted 108 new m ortgage loans to loadings, low er relief req uirem ents,
hom e ow ners and o th er real estate larg er to u rist trav el and resu ltin g re ­
ceipts, and a generally heightened m o­
ow ners to taling $197,562.
rale to th e state as a w hole,” th e As­
The average n u m ber of new loans
sociation reports.
rep o rted p er bank w as 444, and the
Crop production of $111,906,750, live­
average loan w as $239.
stock and livestock and d airy products
T he average n u m ber of renew als
totalin g $77,308,602, (including in ­
p e r b an k w as 151, and th e average re ­
creased inventories of livestock), and
new al w as for $493.
farm benefit paym ents of $29,115,300,
The average nu m b er of new m o rt­ account for th e 1939 gross farm p ro ­
gages rep o rted p er b ank w as 2, and duction of $218,330,652. N ot since
th e average m ortgage w as for $1,829.
1929 has th e state even equalled
$200,000,000.

Depositories
The S tate E xam iner, N o rth Dakota,
has approved th e A m erican N ational
B ank of S aint P aul and th e M idland
N ational B ank and T ru st Com pany of
M inneapolis as custodian depositories.
B anks desiring to pledge assets for
public deposits are advised th a t the
S tate E x am in er w ill accept these
b anks as a custodian for securities de­
posited w ith him.

100 Per Cent
70,000 New Loans
T h at b anks in N o rth D akota are ac­
tively serv in g th e cred it needs of th e ir

in th e n ear fu tu re afte r 25 y ears of
successful operation.
W hile th e b an k has been operating
profitably, th e founder and president,
S. A. F ischer, declared he is closing out
th e business on account of his h ealth
and a desire to get aw ay from active
w ork. Mr. F ish er plans to retire.
O rganized in A ugust, 1914, th e bank
w as c h artered 25 y ears ago, N ovem ­
b er 3. Its c h a rte r w as renew ed an o th ­
e r 25 years on th e ann iv ersary . F is­
cher indicated it m ig h t be tra n sfe rre d
elsew here.
N ot so m any y ears ago th ere w ere
15 banks in E m m ons county. Closing
of th e S trasb u rg in stitu tio n w ill leave
only th e F irs t N ational of L inton and
th e B ank of H azelton.

B eing paid off 100 cents on th e dollar
are depositors of th e F irs t S tate B ank
of S trasburg, w hich w ill close its doors

Northwest Division
T he first regional m eeting of the
N o rthw est D ivision Council of th e U.
S. C ham ber of Commerce w as held in
South Dakota. T he m eeting w as at
Sioux Falls on T uesday, D ecem ber 12.
The N o rth w est D ivision includes Iowa,
M innesota, M ontana, N ebraska, N orth
D akota, South D akota, and W yom ing,
and delegates w ere p resen t from all of
these states. T here w ere sessions on
agriculture, taxation, d istribution, and
labor relations, followed by a ban q u et
addressed by Senator W heeler of Mon­
tana.
N orthwestern Banker


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Federal Reserve Bank of St. Louis

January 19^0

54

• NORTH
A Fine Record
The an n u al re p o rt of The Live Stock
N ational B ank of Omaha, to be p re ­
sented a t its a n n u al m eeting Ja n u a ry
17th, discloses th e fact th a t d u rin g the
p ast y e a r its capital stock and su rp lu s
have been increased to $1,000,000
th ro u g h th e p ay m en t of a $50,000 stock
dividend to its stockholders and the
addition of $50,000 to surplus. Besides
th is stock dividend th e b an k has been
continuous in its paym ent of dividends
to stockholders d u rin g th e e n tire de­

DAKOTA

NEWS

p ression period at th e ra te of 6 per
cent annually.
The rep o rt also indicates th e ex ten t
to w hich th e live stock and ag ricu ltu ral
as w ell as com m ercial business has
been financed by th is b ank in spite of
th e d ro u th w hich began some six y ears
ago, and show s th a t d u rin g th is period
loans increased from $1,566,000 on De­
cem ber 31, 1933, to $6,773,000 on De­
cem ber 31, 1939, and deposits increased
d u rin g th e sam e tim e from $4,910,000
to $14,771,000. T his increase in busi­

•
ness has been reflected in th e addition
of $450,000 to th e capital stock and su r­
plus d uring th e last six years, m aking
th e total capital and su rp lu s now $1,000,000.
T his b ank is know n th ro u g h o u t th is
area as one of th e im p o rtan t factors
in th e financing of live stock feeder
loan business in th e U nited States.

Savings Distribution
D istribution of $96,000,000 in divi­
dends on savings, building and loan
association share accounts for th e p ast
six m onths w ill be com pleted soon, th e
U nited States Savings and Loan
League said. Its estim ate of th e total
p aym ent of earnings covers 8,900 dif­
feren t associations in every state and
in H aw aii and Alaska. A bout 6,800,000
persons w ill receive an yw here from a
few cents on th e dollars th e y saved for
th e first tim e this y ear to several h u n ­
d red dollars on in v estm en ts w hich
have been accum ulating for a decade
or more.
A ccording to M orton Bodfish, Chi­
cago, executive vice p resid en t of th e
League, the total rep resen ted a slight
gain over th e Ju n e 30th distribution.
T he reduction in the ra te of dividends
in some associations because of p re ­
vailing low er m ortgage in te re st rates
w as m ore th a n offset in th e to tal by
th e fact th a t some associations w hich
w ere n ot paying dividends six m onths
ago have re-established them selves on
an earnings basis and are now actively
engaged in hom e lending. I t is esti­
m ated th a t associations w ith 95 per
cent of all assets are now on an earn ­
ings basis.
M any associations have followed th e
custom of d istrib u tin g th e dividends
before C hristm as ra th e r th a n w aiting
u n til the y e a r’s end so th a t holiday
shopping could be facilitated by th e
am ount of these paym ents. Some
w hich are operating on th e older se­
rial plan d istrib u ted earn in g s for th e
th ird q u a rte r and w ere expected to
m ake th e ir final p artitio n of profits for
th e y ear by New Y ear’s day. B oth the
th ird and fo u rth q u arterly dividends
in such associations have been in ­
cluded in th e L eague’s $96,000,000 es­
tim ate for th is sem i-annual period.

Thanx
Diner: “I beg your pardon, b u t w hy
do all these girls stare a t m e?”
W aitress: “I ’m n ot supposed to tell
you, sir, b u t we got some of our food
from th e school of cookery and hom e
economics, n ex t door, an d if you get
sick afte r th a t om elet y o u ’ve ju st
eaten, those girls have all failed in
th e ir exam ination.”
N orthwestern Banker

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Federal Reserve Bank of St. Louis

January 19W

55

MONTANA

nounces th a t th e bank will be open for
business from 9 to 3 in place of from
9 to 4. T his is being done to com ply
w ith the wage and h o u r law u n d er
w hich th ey are req u ired to operate.
This action is being tak en w ith a n u m ­
ber of o th er banks in th is state and
in this te rrito ry .

NEWS

E T H E L W. W ALKER
Secretary-Treasurer
Helena

On Vacation
H. H. Byers, vice p resid en t of The
C harles E. W alters Com pany of Oma­
ha, accom panied by Mrs. Byers left on
D ecem ber 17th for a m o n th ’s vacation
in th e South. T hey will spend m ost
of the tim e in F lorida and expect to
see th e O range Bowl Football game
at M iami on New Y ear’s Day, re tu rn ­
ing via W ashington, D. C.

O. M. JORGENSON
President
B illings

50.000 New Loans
T h a t b an k s in M ontana are actively
serv in g th e credit needs of th e ir com ­
m u n ities is indicated by figures a n ­
nounced by th e A m erican B an k ers A s­
sociation show ing th a t th e com m ercial
ban k s of th e sta te m ade m ore th a n
50.000 new loans to talin g $20,000,000
to business firm s and individuals d u r­
ing th e first six m o n th s of 1939 and
renew ed 18,000 o u tstan d in g loans to ta l­
ing $10,000,000 d u rin g th e sam e period.
T hese figures are based on rep o rts
received from 44 M ontana b an k s hold­
ing m em b ersh ip in th e A. B. A., or 39
p er cent of th e 113 com m ercial b anks
of th e state.
T he 44 b an k s rep o rted th e y m ade
22,099 new loans to talin g $8,672,963 be­
tw een J a n u a ry 1 and Ju n e 30, 1939,
and renew ed 7,382 o u tstan d in g loans
to talin g $4,217,951. In addition, th ey
rep o rted 280 new m ortgage loans to
hom e ow ners and o th er real estate
ow ners to talin g $436,102.
T he average n u m b er of new loans
per b an k w as 502, and th e average
loan w as $392.
The average n u m b er of ren ew als per
bank w as 168, and th e average renew al
w as $571.
The average n u m b er of new m o rt­
gages rep o rted p er b an k w as 6, and
th e average m ortgage w as for $1,558.

Open Hours
As a re su lt of th e qu estio n n aire
sen t to M ontana b anks reg ard in g Open
H ours som e tim e ago, th e M ontana
association has com piled som e in fo r­
m ation. As in th e Service Charge
Schedule sev eral y ears ago, th e re is
a v ery g re a t lack of unifo rm ity , b u t
the m aterial w as not g ath ered to
try to in stitu te un ifo rm open hours,
b u t to assist b anks w hich w ere having
difficulty in m eeting th e 42 h o u r p ro ­
vision now in effect u n d e r th e W age
and H o u r Act.
H av re b anks re p o rt no serious ob­
jection at all to th e ir sh o rten ed ho u rs
(10 to 2 and 9:30 to 12).
The B illings b an k s re p o rt no particu
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Federal Reserve Bank of St. Louis

lar objection to the sh o rtened hours.
P ro p er and adequate ad v ertisin g w as
used in notifying public of th e change.
Public has accepted change w ithout
com plaint or criticism .
One bank in th e N o rth w estern p a rt
Promotion
of the S tate w hich is open 9 to 12 and
R ecently, S. W. B rion w as elevated
1 to 4 w eek days and 9 to 12 on S atu r­ from a ssistan t cashier to cashier of
days rep orted th a t the public did not th e B ank at Ew ing, N ebraska. Mr.
like closing at noon on Saturday.
B rion has been a b an k er in th a t city
One o ther bank, try in g v ery h ard
for 35 years. He has a son, R ichard S.
to m eet th e provisions of th e Act, Brion, age 25, w ho is w orking in the
rep o rted th a t th e public did not like A m erican T ru st Com pany Bank, at
th e new law at all.
San Francisco, California. He has been
The C ontinental N ational, Harlow- in th is b ank for 2 years.
ton, has changed th e ir hours (form er­
ly open 9 to 3 for six days a week)
C . of C . Director
to 10 to 3 for all days except Tuesday
AVheaton S. B attey, vice p resid en t of
w hen th ey close at noon, feeling th a t
S atu rday being open afternoons and th e C ontinental N ational B ank of L in ­
closing Tuesday afternoons provides coln, last m onth w as elected a director
of th e Lincoln Cham ber of Commerce
a b e tte r service for th e ir custom ers.
for a th ree y ear term . He succeeds
M any banks th a t have recently
sh o rtened th e ir hours re p o rt no com­ George Holmes, p resident of th e F irs t
p la in t or objection from th e public. N ational Bank, for the real estate,
A considerable nu m b er of banks finance and insurance section of the
listed on th e tab u latio n advised th a t Cham ber of Commerce.
th ey planned to sh o rten th e ir hours.
S everal banks advised th a t th ey
Christmas Advertising
w ere cuttin g off tim e by having em ­
The Omaha N ational B ank did some
ployees come to w ork from one-half unique C hristm as ad vertising last
to one h o u r later in th e m orning.
m onth in th e form of a beautiful bill
board poster, using the m anger scene
as th e them e.
The poster w as in several colors and
w as used on 40 bill boards in Omaha.

N EBRA SKA

Corn Loans

N EW S
Resigns
R. E. M ontgom ery, presid en t of the
N ational B ank of N orfolk th e p ast six
and a half years, announced he had
resigned his position effective Ja n u ­
a ry 1. His successor w ill be L. Rowe
Gillette, p resid en t for the p ast five
years of th e B ank of Miles City, Miles
City, M ontana.

New Hours
The

Plainview

State

B ank

an

A statew ide move has been launched
by Omaha and N ebraska banking and
civic in terests to retain for Omaha th e
business of handling notes on corn
loans m ade to farm ers in th is area
by the Com m odity Credit corporation.
The corporation recently “stream ­
lined” its corn loan system , reducing
the n um ber of ex tra clerks needed by
th e local Com m odity C redit corpora­
tion office and th e Federal R eserve
B ank for handling the notes from
about 150 to about a dozen or 15. Now
it is proposed to handle th e notes for
th is area in Chicago instead of in
Omaha.
Northwestern Banker

January] 19JO

56

“ f T T l HE frankness and friend-

JL

liness of your officers in

the routine m atters of our nor­
mal banking* transactions and
the courtesies so cordially ex­
tended have been so marked
th at we feel you should be made
aware of our appreciation.”
So reads a letter received from
a valued customer.
The test of satisfactory service
is the attention given to the
routine as well as to the unusual
request.

... THE ...

P H IL A D E L P H IA
NATIONAL BANK
ORGANIZED 1803

PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits

Jo in in g in th e m ove are th e N e­
b rask a
B an k ers’ association, th e
Om aha Clearing H ouse association, th e
Cham ber of Commerce, Senator E d ­
w ard R. B urke, Congressm en C harles
M cLaughlin, K arl Stefan and George
H einke. All have w ired Carl B. Rob­
bins, p resid en t of th e CommodityCredit, p ro testin g th e change.

County Officers
L aw rence Young of L yons is th e
new p resid en t of B u rt county bankers,
succeeding Chase N eum ann of Oak­
land.
O ther officers selected w ere
Q uantin L am bley of T ekam ah, vice
president, and H. C. L arsen of D ecatur,
secretary-treasurer.

Loan Activities
A statew ide effort to broaden loan­
ing activities of N ebraska banks w as
launched recen tly by th e loaning
agencies com m ittee of th e N ebraska
B an k ers’ association.
W illiam B. H ughes, secretary of th e
association, said th e com m ittee w as
u rg in g all m em ber ban k s to seek an
increase in loaning activities. T he
com m ittee also m ade plans to com pile
a m o nthly re p o rt from 435 m em ber
banks on th e n um ber and am o u n t of
loans made, both renew als and new
loans.
The decision to seek expansion of
loaning cam e after RFC officials voiced
criticism of th e n atio n ’s b an k loan­
ing policies. T he com m ittee expected
to rep ly for N ebraska banks th a t a
chief reason ban k loans are low is
loaning activities of g o vernm ent agen­
cies, it w as said.
As m eans of obtaining m ore loans,
th e com m ittee suggested th a t b an k ers
advertise, w atch carefully to see w here
loans m ight originate, take increased
in te re st in farm in g operations.
“B anks have th e m oney to loan and
need loans,” H ughes said, “an d th is
effort of th e com m ittee is to u rge th e
banks to go out and get loans.”

Addresses County Bankers
Jam es H. Clarke, a ssistan t vice p res­
ident of th e A m erican N ational B ank
and T ru st Com pany of Chicago, ad ­
dressed th e jo in t an n u al d in n er m eet­
ing of th e Rock County B ankers As­
sociation and th e Green County B ank­
ers A ssociation, held a t Janesville, W is­
consin, last m onth. Mr. C larke’s sub­
ject w as “T he Outlook for Bonds.”

$ 4 1 ,0 0 0 ,0 0 0

Bonus
M em ber of F ederal D ep o sit Insurance C orporation

N orthwestern Banker

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

January 19JO

D irectors of th e C ontinental B ank &
T ru st Com pany of New Y ork have
voted ex tra com pensation equal to onehalf of one m o n th ’s salary to each offi­
cer and em ploye w ho has been w ith
th e b an k for one y ear or m ore.

57
A choir of 27 em ployes sang C hrist­
mas hym ns before dinner, and gam es
and dancing followed. T here w ere 266
persons a t th e dinner.

IO W A

C. R. GOSSETT
President
Sioux City

Bank Auditors
A g roup of 117 b an k officials, au d i­
tors, and o th er em ployees from all
p a rts of Iow a atte n d e d th e six th q u a r­
te rly d in n e r conference of th e Iow a
A ssociation of B ank A uditors and
C om ptrollers held a t th e B lackhaw k
H otel in D avenport, early last m onth.
C harles Z. M eyer, com ptroller for
th e F irs t N ational B ank of Chicago,
w ho is also first vice p resid en t of th e
N ational A ssociation of B ank A uditors
and C om ptrollers and R. L. Bruce,
d ep u ty su p e rin te n d e n t of th e d e p a rt­
m e n t of b a n k in g of Iow a w ere th e
p rin cip al speakers. O thers w ho ap ­
peared on th e p ro g ram w ere Clay W.
Stafford, cash ier of th e A m es T ru st
and Saving B ank of Ames, Iow a, w ho
is th e vice p resid en t and tre a s u re r of
th e Iow a B an k ers A ssociation; H e r­
m an Staak, cash ier of th e D avenport
B ank and T ru s t Company; H. C. W in ­
der, a ssista n t cash ier and a u d ito r of
th e C entral N ational B ank and T ru st
Com pany of Des Moines; C. R. Colton,
au d ito r of th e F id elity Savings B ank
of O ttum w a and se c re ta ry -tre a su re r of
th e Iow a A uditors Association.
E. H. K etelsen, au d ito r of th e D aven­
p o rt B ank and T ru s t C om pany acted
as ch airm an of th e Conference. Mr.
K etelsen sta te d th a t th e re w ere 50
Iow a b an k s rep resen ted ; 37 cities; 24
counties; and from Illinois, 3 b anks
rep resen ted ; 3 cities; and 2 counties.
F ra n k W arn er, se c re ta ry of th e Iow a
B an k ers A ssociation, co n g ratu lated th e
board of governors, officers and th e
group m em b ersh ip ch airm an of th e
A uditors A ssociation fo r effecting a
200 p er cent increase in m em bership
since S eptem ber first.
T he n e x t conference will be held
a t Cedar R apids, Iowa, d u rin g th e
th ird w eek in M arch. The g eneral
them e of th e S pring conference w ill
be “tim e saving ideas w hich have
been in stitu te d in Iow a b an k s in order
to com ply w ith th e new W ages and
H o u rs L aw s.”

Annual Banquet
Officers, em ployes and som e direc
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

To Florida

N EW S

FRANK W ARNER
Secretary
Des Moines

to rs of th e Iowa-Des Moines N ational
B ank held th e ir an n u al C hristm as
b an q u et in Des Moines last m onth.
C larence A. Diehl, a vice p resid en t
of th e bank, w as aw arded m em ber­
ship in th e b a n k ’s 25-year club. T he
aw ard w as p resented by H erb ert L.
H orton, presid en t of th e bank.

Jam es E. H am ilton, ch airm an of the
board of th e M erchants N ational B ank
of Cedar Rapids, and Mrs. H am ilton
left Cedar R apids ju s t before C hrist­
m as for th e ir an n u al vacation in
Florida. T hey w ill spend m ost of
th e ir tim e a t M iami and P alm Beach.

Christmas Party
Officers, em ployes, directors and
th e ir w ives of th e City N ational B ank
of Clinton held a C hristm as p a rty
Decem ber 20th a t th e Clinton C ountry
Club. T he p a rty included dinner,
afte r w hich sm all gifts w ere ex­
changed.

O COUNTY in Iow a or any o th er state can boast of its prize w inning
beef cattle to th e ex ten t of C linton County, Iowa, w hich year after
y ear practically dom inates th e w inning en tries at the Chicago In te r­
national L ivestock E xposition. The record of Clinton county in this
respect is am azing and th e 1939 show w as no exception.
Above is show n Leo Duer, Jr., of C harlotte, Clinton County, and his
e n try w hich w on first prize in th e heavy S h o rth o rn Ju n io r feeding class
a t th e Chicago show. L eo’s anim al w on th e reserv e cham pionship for
all 4-H Club S h o rth o rn s at th e 1939 Iow a state fair.
P resid en t E. M. W arner, of th e City N ational B ank of Clinton, also
calls a tten tio n of his b an k er friends to th e fact th a t a t th e Chicago
1939 Show 26 per cent of th e en tire beef lot en tries accepted w ere from
Clinton county, and 32 p er cent of th e prize m oney in th is class w ent to
C linton county feeders.

N

Northwestern Banker

January 1940

KEEPING IN CLOSE
With Iowas Basic Interests
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TOUCH
The B ankers T ru st C om pany is a bank whose interests,
like your own, are centered in Iowa. And its directors
are men whose successful careers have been carried on in
widely diversified fields of activity within the state.
Thus B ankers T ru st C om pany is able to render wellrounded financial service to custom ers in all the varied
fields of Iowa industry, commerce, and agriculture, and
to the m any banks which have nam ed Bankers T ru st as
their Des M oines correspondent.
It is of vital im portance to custom ers of the Bankers
Trust th a t its board-m em bership represents a crosssection of Iowa's m ajor business activities. T h a t specific
benefits result from this diversification of contact and
b readth of experience is clearly reflected in the steady
grow th of the bank.
Com mercial banking exists prim arily as a service to
business, w hether th a t business be farming, furnace­
building or freight-handling.
In recognition of this basic relationship between
banking and business, the B ankers T ru st C om pany
plans to present a series of advertisem ents analyzing the
m ajor sources of Iowa income. The first advertisem ent
in the series will appear in the F ebruary issue of the
N orthw estern Banker. C om m ents or suggestions regard­
ing any advertisem ent in this series will be welcome.
Top Row (left to right)
P a u l B eer, P re sid e n t, F ly n n D a iry C o m p an y
D r. O. J . F a y , Surgeon
J. G. G am ble, A tto rn e y
J. W . H ow ell, P re sid e n t, W arfield -P ratt-H o w ell C o m p an y

Middle Row (left to right)
F. W . H ubbell, P resid en t, E q u ita b le Life In su ran ce Co. of Iowa
J. W . H ub b ell, P re sid e n t, F. M . H u b b ell Son a n d Co., Inc.
S hirley P ercival, P re sid e n t, G reen F o u n d ry an d F u rn a c e W orks
R ussell R eel, P re sid e n t, Yellow C a b C o m p an y

Bottom Row (left to right)
Jo h n D . Shuler, P re sid e n t, S huler C oal C o m p an y
B. F . K auffm an, P re sid e n t of B a n k ers T ru s t C o m p an y
S. C. Pidgeon, V ice-P resident of B an k ers T ru s t C o m p an y
R. R . R ollins, V ice-P resident of B an k ers T ru st C o m p an y

BANKERS T R U S T
6th and Locust Streets
De s M o i n e s , I o w a
Member Federal Deposit Insurance Corporation

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

tVJL jL
Member Federal Deserve System

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60

—

The U nion S tate B ank of Bridgew ater reached its 50th a n n iv e rsa ry
Ja n u a ry 6th. T he b a n k w as opened
for b u siness J a n u a ry 6, 1890, as a p ri­
vate b an k u n d e r th e nam e of th e U nion
B ank an d w as o perated and ow ned by
J. G. H endry, p resident; G. C. R echtenbach, cashier, an d W es Taylor. The
profits of th e b an k th e first y e a r of
operation w ere $97.89.
J. G. H en d ry continued as p resid en t
of th e b an k u n til th e tim e of his d eath
in 1919. H attie E. H en d ry began as
cashier of th e b an k in S eptem ber, 1892,
and continued as such u n til h er d eath
in F eb ru ary , 1929.
The p re se n t officers of th e b an k are:
George A rnold, president; E d A rnold,
vice p resident; W. F. K niep, cashier.
The directors are: Jo h n M cD erm ott,
E d A rnold, W. F. K niep, G race Covell
and George A rnold.

Make Payments
F ifty -th ree closed Iow a b an k s paid
th e ir fo rm er depositors $1,774,078.32
th ro u g h liquidation of th e b a n k s’ as­
sets d u rin g 1939, D. W. B ates, state su­
p erin te n d e n t of banking, re p o rte d re ­
cently.

•—
au d ito r for affiliated co u n try banks of
th e Toy N ational B ank of Sioux City
since M arch, 1911.
Mr. F erg u so n w as b o rn in Stevens
county, Illinois, Septem ber 27, 1870.
He came w ith his p aren ts of Y orktow n,
N ebraska, in 1871 w here th ey hom e­
steaded.
S urvivors include th e widow, one
daughter, E lizabeth, of Lincoln and
tw o sons, Iv an N. of Lincoln, and H a r­
old H. of Moville.

Dies In Omaha
Sw eeden M eredith Jolliffe, 59, vice
p resid en t of th e N odaw ay N ational
B ank a t Villisca, died recen tly a t an
Omaha hospital w here he w as ta k e n
after suffering a stroke. In O m aha to
v isit his w ife w ho w as ill, Mr. Jolliffe
w as strick en a t th e hom e of an au n t,
Mrs. C. A. Krell.
Mr. Jolliffe form erly operated a
m en ’s clothing business in V illisca for
16 years. H e previously lived a t Lo­
gan. H e w as a tru ste e of th e Villisca
m unicipal w a te r plant, a m em ber of
th e M ethodist church, M ontgom ery
M asonic Lodge, a thirty-second degree
M ason and a m em ber of th e Sioux
City C onsistory and th e Shrine.

Dies In Moville
A fter being confined to his bed for
th e g re a te r p a rt of th e last four years,
H e rb e rt I. F erguson, 70, died in Mo­
ville recently. H e had been a field

NATIONAL

S A L L E

LA

NEWS

M ost of th e paym ents w ere single
ones for the year b u t four of th e banks
m ade tw o or m ore paym ents each.
Included am ong th e paym ents w ere
28 “finals” in w hich th e receiverships
paid out th e last am ounts th a t w ill be
paid.
L arg est individual pay m en t of th e
y e a r w as by th e Dike Savings B ank of
Dike, Iowa, w hich paid its form er de­
positors $128,009.66 N ovem ber 15th.
T he banks w hich m ade m ore th a n
one p ay m en t du rin g th e y e a r and the
am o u n t of th e paym ents were:
Iow a Loan & T ru st Company, Fairfield: Two paym ents of $24,816.42 and
one of $6,204.11.
F a rm e rs Savings Bank, A nkeny: One
p ay m en t of $14,735.03 and one of $36,837.58.
F a rm e rs & M erchants Savings Bank,
Crestón: Two paym ents of $28,957.49
each.
Iow a State Savings Bank, Fairfield:
One p aym ent of $21,140.36 and one of
$42,280.73.

Fifty Years

AMERICAN

IOWA

BANK

S T R E E T

AT

AND

TRUST

COMPANY

W A S H I N G T O N

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

D e c e m b e r 30, 1939

A n n u al Statem ent

L I ABI LI TI ES

R E S O U R C E S
CASH

AND

DUE

FROM

BANKS

-

-

-

-

U. S . G O V ’T O B L I G A T I O N S — D I R E C T A N D
FULLY GUARANTEED
- - - - - - -

$29,114,183.63
14,568,796.23

CAPITAL S T O C K — P R E F E R R E D

-

CAPITAL S T O C K — COMMON

-

SURPLUS

-

-

-

-

-

-

UNDIVIDED P R O FITS
M U N IC IP A L AND
SECURITIES
-

OTHER MARKETABLE
- - - - - - - - - -

12,896,817.08

-

78,000.00

C U STO M ERS’ LIABILITY
ON
ACCEPT­
ANCES
- - - - - - - - - - - -

31,552.24

FEDERAL

R E S E R V E BAN K S T O C K

-

-

RECEIVABLE

R E A L E S T A T E OWN ED
OTHER A SSETS.

N orthwestern Banker


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

-

- -

-

- -

-

-

-

- -

-

-

- -

January 19b0

-

-

-

-

- -

-

-

-

- -

-

UNEARNED

DISCOUNT

LIABILITY

ON

-

-

-

-

$

600,000.00

-

1 , 0 0 0 , 000.00

-

1, 00 0 , 000.00

554,030.51

- -

_

-

-

-

-

ACCEPTANCES

-

-

-

100 , 000.00

871,618.34
87,619.33
31,552.24

DEPOSITS:

. _ - _ _ -$57,690,992.95
- 3,750,671.94

SPECIAL

DEPOSIT

(S u b je ct to court o rd e r)

202,211.05
1.00

-

-

-

RESERVE
FOR TAXES,
IN TER EST, CON­
TINGENCIES, E TC .. - - - - - -

d e m a n d

ACCRUED INTEREST

- -

-

P R E F E R R E D S T O C K R E T I R E M E N T FUND

16,957,052.29

LO AN S AND D IS C O U N T S

-

-

7,355.89
$73,855,969.41

UNITED S T A T E S

G O V ’T

OTHER

FUNDS

PUBLIC

SAVINGS

-

OTHER TIM E

-

..

.

.

.

DEPOSITS

2,600,000.00
44,181.37
5,400,405.23
124,897.50 69,611,148.99
$73,855,969.41

61

First Annual
M i d - W i n t e r Banking Conference
Iowa Association to Hold Morning, Afternoon,
and Evening Sessions on January 22
A LLED for M onday, J a n u a ry 22,
th e first Iow a m id-w inter b a n k ­
ing conference w ill be held in
Des M oines u n d er th e sponsorship of
th e Officers of th e C ounty B an k ers As­
sociations of th e Iow a A ssociation.
The sessions, m orning, aftern o o n and
evening, w ill convene in th e H otel F o rt
Des Moines.
P resid in g a t th e sessions w ill be
A. T. Donhowe, vice p resid en t of th e
C entral N ational B ank & T ru s t Com­
pany, Des Moines, and p resid en t of th e
O rganization of Officers of th e C ounty
B an k ers A ssociations. J. W. Davis of
Avoca and H orace B. H am m er of W ap­
ello, are vice p re sid e n t an d secretary,
respectively, of th e sam e organization.
T he com plete p ro g ram recen tly re ­
leased is as follows:

Forenoon Session
Theme, “Investm ent Principles for
Non-City Banks; Other Operating
Problem s”
9:30 A. M. M eeting Called to O rder
R em ark s—A. T. Donhowe, president,
“O rganization of Officers of C ounty
B an k ers A ssociation,” vice president,
C entral N ational B ank & T ru st Co.,
Des Moines.
P re se n tin g J. W. Davis, vice p resi­
dent, “O rganization of Officers of Coun­
ty B an k ers A ssociation”; tre a su re r,
P o tta w a tta m ie C ounty B an k ers Asso­
ciation; president, Citizens Savings
Bank, Avoca.
G reetings—D. W. B ates, president,
N ational A ssociation of S upervisors of
State Banks; Iow a State S u p erin ten d ­
en t of B anks, Des Moines,
“Investm ents”
“A Safe Bond A ccount Consists of
W h at?”—W illiam B uxton, III, secre­
tary , W a rre n C ounty B an k ers Associa­
tion; vice president, Peoples T ru s t and
Savings B ank, Indianola.
“In v e stm e n ts for R u ral B an k s”—
F re d M. M orrison, p resident, Des
M oines C learing H ouse Association;
president, V alley Savings B ank, Des
Moines.
“The D rop in th e Yield of B ank As­
sets”—R. R. B rubacher, president, Toy
N ational Bank, Sioux City.
G uest S peaker—Jam es H. Clarke,
a ssista n t vice p resid en t, A m erican N a­
tional B ank & T ru st Co., Chicago,
“B usiness and th e Bond M arket.”
“Government Competition”
“W here W ould I t E n d ? ”—F ra n k C.
W elch, p resid en t Peoples Savings
Bank, Cedar Rapids.
“H ow to M eet I t ”—H. W. Schaller,

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

president, C itizens F irs t N ational
Bank, Storm Lake.
“Uniform Banking Hours”
“Is T here a L im it?”—N. E. Kelley,
cashier, F a rm e rs & M erchants State
B ank, W interset.
“Do Our C ustom ers Care So M uch?”
—R obert J. Tank, president, Scott
C ounty B ankers Association; cashier,
C entral T ru st & Savings Bank, Eldridge.
“Unemployment Compensation Tax”
G uest S peaker—J. Charles Crawley,
g eneral counsel, Iow a U nem ploym ent
C om pensation C o m m i s s i o n , Des
Moines, “N ational B anks an d State
F E D M em bers.”

Afternoon Session
Theme, “Consumer Credit Loans” or in
Other Words, “Installm ent
Lending”
1:45 P. M.
M eeting Called to O rder—A. T. Don­
howe.
“C onsum er C redit Possibilities in an
‘In d u stria l’ A rea”—C arleton Sias, vice
president, W aterloo Savings Bank,
W aterloo.
“C onsum er C redit Possibilities in a
‘Coal M ining’ A rea—J. E. King, p resi­
dent, Peoples N ational Bank, Albia.
“C onsum er C redit Possibilities in a
‘G rain G row ing’ A rea”—S. R. Torgeson, cashier, F a rm e rs & M erchants
S tate Bank, Lake Mills.
“C onsum er C redit Possibilities in a
‘D airying’ A rea”—Chas. E. Fleenor,
secretary -treasu rer, A llam akee C ounty
B ankers Association; a ssistan t cashier,
F a rm e rs & M erchants Savings Bank,
W aterville.
“C onsum er C redit Possibilities in a
‘C attle F eeding’ A rea”—C. L. Rigby,
president, U nion T ru st & Savings
B ank, Stanwood.
G uest S peaker—K enton R. Cravens,
vice president, th e C leveland T ru st
Company; president, B ankers A ssocia­
tion for C onsum er Credit, Cleveland,
Ohio, “Consum er C redit T rends in
B anking.”
“A Survey of In stallm en t Lending
by Iow a B anks”—H. B. H am m er, sec­
re ta ry , O rganization of Officers of
C ounty B ankers A ssociations”; form er
president, Louisa-W ashington C ounty
B ankers Association; executive vice
president, S tate B ank of W apello,
W apello.
R ound Table and Q uestion Box.

Evening Session
Theme, “Federal Bank Legislation;
Present and Prospective”
6:30 P. M.
D inner (In fo rm al)—W est Ballroom
and Lounge, M ezzanine Floor, F o rt
Des M oines Hotel.

M eeting Called to O rder—A. T. Don­
howe.
Music.
P resen tin g C. R. Gossett, president,
Iow a B ankers Association; president,
S ecurity N ational Bank, Sioux City,
w ho w ill preside.
G reetings—Hon. George A. W ilson,
governor of Iowa, Des Moines.
A ddress—Hon. H. B. Steagall, ch air­
m an, U. S. H ouse B anking an d C ur­
rency Com m ittee, W ashington, D. C.,
“F ed eral B ank Legislation; P resen t
and P rospective.”

Annual Meeting
P resen t officers of th e Davis County
Savings Bank, Bloomfield, w ere all re ­
elected for th e ensuing y e a r at a m eet­
ing of th e board of directors following
th e an n u al stockholders m eeting. Of­
ficers of the b an k are: P. T. Grimes,
president; H a rry B urchett, vice presi­
dent; E d Shaw, cashier.
Seven stockholders w ere elected as
m em bers of th e board of directors at
th e an n u al m eeting, including; T. A.
Goodson, H a rry B urchett, W. R. Carroll, E d Shaw, W. T. Dunlap, George
W. Leyda and P. T. Grimes. The di­
recto rs w ere elected for th e com ing
year.

Bank Elects
The State B ank of E arlville held
th e ir ann u al business m eeting at th e
ban k on Decem ber 19th and elected
th e follow ing directors: W ill H unt,
Searless Bisgrove, M yrna Bisgrove,
Floyd Laxson, Carl Laxson, A. L. P re n ­
tice, and O rra Laxson. T he officers
are president, Carl Laxson; vice p resi­
dent, W ill H unt; and cashier, Orra
Laxson.

In New Quarters
The L essing A dvertising Company,
Inc., Iow a’s oldest ad v ertising agency,
has m oved into new ly rem odeled and
refu rn ish ed offices at 910914 W alnut
Bldg., Des Moines, R. J. F lynn, p resi­
d en t has announced. T he agency has
been operated continuously u n d er the
sam e nam e in Des M oines since 1907,
although th e actual beginning of the
fo u n d er’s ad v ertising practice w as
m any y ears previous to 1907. D. L.
D ungan, secretary, has been w ith the
com pany since 1921.

62

• IOWA
D uring m ore th a n 30 years, m em bers
of th e agency have been closely iden­
tified w ith th e expansion of Iow a’s
leading industries: agricu ltu re, m a n u ­
facturing, b anking and insurance.
Types of accounts served include
banks, farm m ach in ery m an u factu rers,
Iow a’s larg est n u rse ry com pany, the
co u n try ’s leading m ail order farm
seed house, p o u ltry b reeders and
hatcheries, farm building m a n u fa c tu r­
ers, custom ta n n in g and m a n u fa c tu r­
ing fu rrie rs and a score of o th er b u si­
nesses located in Iowa, Illinois, M inne­
sota, N o rth D akota and K ansas.
In addition to publication ad v e rtis­
ing th e com pany m ain tain s com plete
art, radio and direct m ail d ep artm en ts

NEWS

•

—and is equipped to w rite, stage, test
and schedule radio, secure talen t and
to direct radio m erchandising. All
techniques of graphic reproduction,
ran g in g from photographs th ro u g h
line d raw ings and lithographic pro­
cesses are featured. All types of book­
lets, brochures, catalogs, circulars,
letterh eads and letters are prep ared by
th e com pany u n d er th e direction of
m en w hose m any years of train in g
has been to produce “ad v ertisin g for
im m ediate sales” or m easurable re ­
sults. The services of the a rt d ep art­
m en t are also available for designing
of outdoor signs, billboards, painted
boards, signs, etc.
The agency is recognized by all as-

sociations in the advertising field—
m agazines, new spapers, trad e papers,
radio stations, outdoor advertising
com panies, etc., as well as com panies
in the prem ium , p rin tin g and en g rav ­
ing fields.
M em bers of the agency staff include
W. T. Standers, a rt director; H. B.
Brow n, copyw riter; Mrs. Nelle P ö t­
tinger, office m anager; Gus Strauss, ac­
count executive and G erry A nn B ar­
ker, radio.

County Meeting
T he m em bers of th e G rundy C ounty
B ankers A ssociation m et a t B eam an
w ith th e F irs t State B ank of Conrad

The Merchants National Bank in

H E above pho to g rap h dates back to 1903, and is a
p ictu re of th e staff of th e M erchants N ational B ank
of Cedar Rapids, Iowa, w hen th e hom e of th is pioneer
ban k in g in stitu tio n w as on th e so u th w est corner of
Second A venue and T h ird Street, ju s t across the
stre e t from its p re se n t location. The read er w ill
note th a t in addition to th e en tire staff of th e bank,
a display of some of th e b a n k ’s cash assets are show n
in th e foreground.
T he individuals show n in th e p ictu re are from left
to rig h t T heodore W. H aw kinson, M ark J. M yers,

T

Northwestern Banker

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

January 19^0

1903

George F. Miller, Ira F. W yant, Charles E. P utnam ,
R obert Trousdale, Jam es E. H am ilton, w ho is a t th e
re a r of the group, Jo h n B urianek, Jr., w ho is in front
of the group, F ra n k J. D vorak, Jessie Dodds, w ho is
now Mrs. Jack W u rster, W illa Woods, Joseph W.
Lesinger, E dw ard Snyder. Of this group th ree are
still active in th e M erchants N ational B ank m anage­
m ent, including C hairm an H am ilton, Mr. M yers, Vice
P resid en t and Cashier, and George F. M iller, Vice
P resid en t and T ru st Officer.
Mr. P u tn am and Mr. B urianek are deceased.

63

- • I O W A
and th e F a rm e rs Savings B ank of Bea­
m an as jo in t hosts. T here w ere th irty
p re se n t w ith each b an k in th e county
being w ell represented. Out-of-thecounty g u ests w ere F ra n k W arner,
se c re ta ry of th e Iow a B ankers Asso­
ciation, E. W. Jones, vice p resid en t
of th e Iowa-Des M oines N ational B ank
& T ru s t C om pany of Des Moines, and
A. F. Agena, cashier of th e F arm e rs
Savings Bank, G arw in.
A three-course d in n er w as served at
6:30. Follow ing th e d in n er a m eeting
w as held in th e A m erican Legion H all
afte r w hich a ta lk w as given by E. W.
Jones w ho h ad as his subject “Public
R elationship P e rta in in g to B anks.” A
ta lk on th e new Corn Loan P ro g ram
w as given by Je n s T h eusen of th e
G rundy C ounty Soil C onservation
Commission. F ra n k W arn er, secre­
ta ry of th e Iow a B an k ers A ssociation
talked on th e new W age an d H o u r
L aw p e rta in in g to b an k s and im m edi­
ately follow ing he conducted a ro u n d
table discussion on th is subject.

News Notes
N ew b an k in g h o u rs w hich w en t into
effect a t Sioux City are from 9:30 to
2:00 on w eek days and from 9:00 to
12:00 noon on Saturday.
A t C linton, b an k in g ho u rs are from
9:00 a. m. to 2:00 p. m. on w eek days
and from 9:00 a. m. to 12:00 noon on
Saturday.
Effective D ecem ber 11, new b anking
ho u rs w en t into effect a t D avennort as
follows: W eek days 9:30 a. m. to 2:30
p. m. and S atu rd ay from 9:30 a. m. to
1:00 p. m.
Spencer b an k s changed th e ir b a n k ­
ing h o u rs b eginning M onday, D ecem ­
b er 18, so th ey are open to th e public
from 10:00 a. m. to 3:00 p. m. every
w o rk in g day.
V ictor b an k in g ho u rs are now from
9:00 a. m. to 3:00 p. m. The change
w as m ade last m onth.
The F irs t Capital N ational B ank,
Iow a Citv, announces a change in in ­
te re st ra te s effective J a n u a ry 1, 1940 as
follows: Savings accounts IV2 p er cent
on am o u n ts up to $5,000.00, 1 p er cent
from $5,000.00 to $10,000.00, V2 p er cent
from $10,000.00 to $20,000.00.
The ra te on all tim e CD’s w ill be
1 p er cent.

Des Moines A . I. B.
The A. I. B. m en m em bers held a
stag p a rty D ecem ber 8, 1939 a t th e
E a st Des M oines Club. It w as a t­
tended by 90 m em bers and guests.
Am ong th e guests w ere m em bers of
ch ap ters from M arshalltow n, N ew ton
an d Ames.

NEWS-

New in Shell Rock

Ohio Superintendent

A new b an k in Shell Rock is ex­
pected to be incorporated in M arch,
it has been announced by a group of
Shell Rock business m en backing the
project.
T he capital stock of $25,000 has been
oversubscribed, and additional pledges
are still being received.

R odney P. Lien, 38, form erly of Des
Moines, w as appointed su p erin ten d en t
of Ohio banks recen tly by G overnor
Jo h n W. B ricker.
Mr. Lein, w ho left Des M oines in
1936 to becom e executive vice p resi­
den t of the N ational City B ank at
Lim a, Ohio, now is p resid en t of th e in ­
stitution.
Before going to Ohio, L ien had been
connected w ith banks in W aterloo and
M ason City, Iowa.

Some tim e w ill be required, it w as
explained, to m eet th e req u irem en ts of
th e state b anking departm ent.

c

/A

æ

U VE STOCK
NATIONAL BANK
of ChjLcouqxj'
UNION

S T OCK Y A R D S

S T A T E M E N T

OF

CONDITIO

DECEMBER 30, 1939
BOARD OF DIRECTORS
F R E D E R I C K H. P R I N C E
F. H. Princ e & Co., P ro v idence, R. I.
R O B E R T J. D U N H A M
I n v es tm en ts

a . M cD o n o u g h
In v estm en ts, P rovidence, R. I.

ja m e s

R IC H A R D H A C K ET T
G e n e r a l M a n a g e r , C en tra l
M a n u fa c tu r in g District

W I L L I A M J. O ’C O N N O R
A s s ’t G e n e r a l M a n a g e r , U nion
Stock Y a rd & Transit Co.

O R V I S T. H E N K L E
V ice-Presid en t a n d G e n e r a l
M a n a g e r , U n io n Stock Yard
& Tr ansit Co.

D A V I D H. R E I M E R S
Presiden t, The Live Stock
N a t i o n a l Bank of C h i c a g o

A R T H U R G. L E O N A R D
P residen t, U n io n Stock Yard
& Tr ansit Co.

C L Y D E H. S C H R Y V E R
Presiden t, C h i c a g o M e r c h a n d is e
a n d E q u ip m ent Co.

T H O M A S E. W I L S O N
C h a irm a n , Board of Directors
W ilson & Com pany

RESOURCES
C a s h a n d d u e from b a n k s ................................................... $ 1 9 , 4 7 0 , 3 0 8 . 1 4
U n ite d S ta t e s G o v ern m en t S ecu rities
3,902,514.54
S ta te a n d M u n ic ip a l S e c u r i t i e s .........................................
1,596,236.59
O ther M a r k e t a b le B onds
715,002.89
L o a n s a n d d i s c o u n t s ................................................................
5,948,209.93
F e d e r a l R eserv e Bank s t o c k ...............................................
75,000.00
Bank b u i l d i n g .............................................................................
4 5 0,000.00
Furniture a n d e q u i p m e n t .......................................................
1.00
Interest ea r n e d , n ot c o l l e c t e d ............................................
35,581.99
Current r e c e i v a b l e s a n d other a s s e t s
45,8 3 1 .3 0
$32 .2 3 8 ,6 8 6 .3 8

LIABILITIES
C a p i t a l ........................................................................................... $
1 000,000.00
S u rp lu s............................................................................................
1 , 5 0 0 ,0 0 0 .0 0
U n d iv id e d profits a n d r e s e r v e s .........................................
164,421.26
U n e a r n e d D i s c o u n t ...................................................................
30,838.98
D e p o s i t s .......................................................................................... 2 9 , 5 4 3 , 4 2 6 . 1 4
$32 ,2 3 8 ,6 8 6 .3 8
M em ber F e d e r a l D e p o s it I n s u r a n c e Co rp o ra tio n
ESTABLISHED 1 8 6 8

Northwestern Banker

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

January 19JO

64

• IOWA
Keokuk A . I. B.
Mrs. C arla Logan, A. I. B. class
m em ber, w ife of W. A. Logan, vice
p resid en t of The State C entral Sav­
ing B ank, w ith h e r two children, Billie
and Sandra, are enjoying F lo rid a su n ­
shine, v isitin g a t th e hom e of h er
m other, Mrs. C arleton H uiskam p at
F o rt L auderdale.
A nd speaking of su n sh in e—th is
ever-bloom ing v a rie ty th a t we have
been hav in g h ere in Iow a th is w in te r
is n o th in g sh o rt of uncanny! I t ’s n ear
C hristm as, as th is is w ritte n , y et Sun-

NEWS

•

day th e n u m ber of cars p ark ed a t the
golf courses w ere alm ost as m any as
on th e 4th of July! B ut secretly, I ’m
w o rried about S anta Claus and am
scanning th e w eath er reports, hoping
for a nice g ray sky w ith lots of snow
for th e 25th!
K eokuk ban k ers are already g etting
out th e “W elcom e” sign for Group
E leven and o th er banker-friends w ho
w ill come to K eokuk th is y ear to th e
an n u al Group m eeting, F e b ru a ry 22nd.
It has been six y ears since th e pow ­
w ow has been held in Keokuk!
H elen K ollm yer, R eporter.

Started in Nebraska
P erh ap s m any of our read ers know
th a t R. H. B arber, presid en t of th e
Citizens N ational B ank of Boone, got
his s ta rt b an king in N ebraska, b u t few
know w here he started and th e several
com m unities in w hich he conducted
his business.
Mr. B arber sta rte d in th e banking
business, from scratch, in K eystone,

(pmmerceXriist(ompany’
Established 1865
KANSAS CITY, MISSOURI
Member Federal Reserve System

R. H. Barber standing in front of
the A rthur State Bank.

Statement of Condition at Close of Business December 30, 1939
R E SO U R C E S
Cash and Due from B a n k s................................................................. $ 79,950,440.86
U . S. Governm’t O bligations, D irect and F u lly Guaranteed

36,450,215.59

State, M unicipal and Federal Land Bank Bonds

27,284,953.98

Stock of Federal R eserve B a n k .................................

252,000.00

Other B onds and S e c u r itie s.........................................

9,067,993.99

$116,400,656.45

36,604,947.97

L oans and D isco u n ts...............................................................................................................

39,937,555.62

Bank Prem ises and Other R eal E sta te O w ned...........................................................

2,607,732.55

C ustom ers’ L ia b ility A ccount L etters of C redit.........................................................

27,918.50

A ccrued In terest R e ce iv a b le ................................................................................................

373,889.23

O verdrafts ..................................................................................................................................

14,372.15

Other R e s o u r c e s ............................................• ..........................................................................

893.36

$195,967,965.83

T otal Resources
L IA B IL IT IE S

N ebraska, in 1908. H e th e n organized
th e A rth u r State Bank, of A rth u r, th e n
to Paxton, N ebraska, to organize a n ­
o th er bank. Still la te r he and his
brother-in law w en t to K earney and
organized th e F t. K earney S tate Bank,
and it w as from th is la tte r in stiu tio n
th a t he cam e to Boone, Iowa, as m an ­
aging officer of th e C itizens S tate
Bank, of w hich he is now president.

Resign
George S. M ornin, receiver, and D.
T. Eells, a ssistan t receiver for th e
Com m ercial N ational and th e P ioneer
N ational banks of W aterloo since 1933,
have announced th e ir resignations.
B oth are residents of Cedar Falls,
Iowa.
Mr. M ornin w ill be succeeded by J.
S. U tterback, Oskaloosa, Iowa.

D ep o sits :
U . S. Government D e p o sits ...................................................... $

Capital

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

Surplus

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

U ndivided P r o f it s .......................................

L ia b ility A ccount L etters

$184,414,053.49

6,000,000.00
2,400,000.00
3,096,676.03

of C red it..............................................................................

A ccrued Interest, T axes and

Election

1,834,175.00

Other D ep o sits .............................................................................. 182,579,878.49

11,496,676.03

27,918.50

E x p e n se ..........................................................................

28,665.00

Other L ia b ilitie s .....................................................................................................................

652.81

T otal L ia b ilitie s ............................................................................................................. $195,967,965.83
M em ber Federal D ep o sit Insurance Corporation

Northwestern Banker

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

January 19W

A t th e m eeting of th e board of direc­
to rs of th e M alvern T ru st and Savings
B ank officers for th e y ear w ere nam ed.
In addition to th e staff th e directors
also nam ed Louis J. Knop as a ssistan t
cashier and W ayne D rake as cashier
of th e Im ogene b ran ch of th e bank.

To Keokuk
W alter Thiele resigned his position
recen tly as cashier of th e F irs t T ru st
and Savings Bank, to become effective
Ja n u a ry 1st, w hen he w ill accept a
new position as cashier and d irector of

65

-•

IOWA

NEWS

—

th e K eokuk Savings B ank a t K eokuk.
Mr. T h iele’s resig n atio n cam e as a
com plete su rp rise to th e m a jo rity of
his friends.

th e S tory C ounty S tate B ank of Story
City, vice president, and E ldon Schoon­
over of th e N evada N ational Bank, sec­
re ta ry -treasu rer.

Notes Returned

Election

M ore th a n $400,000 in notes, re p re ­
sen tin g p a rt of th e rem ain in g assets of
th e fo rm er P eople’s N ational B ank of
W aukon, th e B ank of R ossville an d th e
Q uandahl Savings Bank, have been
re tu rn e d to th e original ow ners.
In F e b ru a ry , 1934, a group of W au ­
kon an d L ansing, Iowa, m en b ro u g h t
th e th re e b a n k s’ assets at receiv er’s
auction.
R ecently th e y announced
th e y h ad stopped m aking collections
and w ere re tu rn in g th e notes w ith o u t
cost or obligation.

Heads Clearing House
F re d e ric k M. M orrison, p resid en t of
th e V alley Savings B ank, has been
elected p resid en t of th e Des M oines
C learing H ouse association for 1940.

Officers of th e H aw keye B ank re ­
elected are L. H. H auth, president;
W. W. B u rk h art, vice president; L oren
B illm eyer, cashier; and Don W arneke,
a ssistan t cashier.
D irectors re-elected are J. B. P alm er,
H. F. F ritz, A. L. E itel, H en ry Schlat­
ter, C harles M itchell and A. A. Gager.

C . of C . Head
George W. W oods, executive vice
p resid en t and cashier of th e F irs t N a­
tion Bank, w as elected presid en t of th e
Council Bluffs Cham ber of Commerce
at th e m eeting of th e recently-elected
board of directors.

Close Office
The office of th e M itchellville F a rm ­
ers Savings Bank, operated in Ira
since 1936 w h en th e Ira b an k consoli­
dated its resources w ith th e Mitchell-

Statement of Condition as Made to Superintendent of
Banking at the Close of Business Decem ber 30, 1939
RESOURCES
First Mortgage Loans _________________________ $ 614,469.21
Loans Secured by Collateral____________________ 1,154,791.01
Commercial Loans Supported by Financial
Statements _________________________________ 832,150.37 $2,601,410.59
Overdrafts ____________________________________
813.37
Real Estate (former bank building included)_____
84,550.45
Furniture and Fixtures ________________________
21,697.53
State, County, and Municipal Bonds_____________
351,525.04
Market Bonds ________________________________
238,821.49
Call Loans and Commercial Paper_______________
420,000.00
U. S. Government Securities_____________________ 209,525.00
Cash on Hand and Due from Banks_______
2,790,382.30 4,010,253.83
3,718,725.77
LIABILITIES
Capital Stock _________________________________ $ 175,000.00
Surplus ______________________________________
175,000.00
Undivided Profits _____________________________
21,021.73
Dividend Checks Outstanding----------------------------DEPOSITS ___________________________________

362,021.73
1,800.00
6,354,904.04
5,718,725.77

F. M . M O R R IS O N

D e p o s its I n s u r e d b y T h e F e d e r a l D e p o s it I n s u r a n c e C o m p o r a tio n
W a s h i n g to n , D . C.

H e w as first vice p resid en t d u rin g 1939
and succeeds G ran t M cP herrin as
president.
Rolfe O. W ag n er w as nam ed first
vice p re sid e n t and H e rb e rt L. H orton,
second vice president. F re d A tkins
w as re-elected secretary.

$5,000.00— M a x im u m I n s u r a n c e f o r E a c h D e p o s ito r — $5,000.00

The Waterloo Savings Bank
WATERLOO, IOWA

County Meeting
The a n n u a l m eeting of th e Story
County B a n k e rs’ association w as held
a t N evada recently, w ith a b an q u et
a t H otel Story. H a rry C airns of Cam­
bridge, presided. T hey chose th e fol­
low ing officers for th e com ing y ear:
T. E. LaVelle, of th e College Savings of
Ames, p resident; W illiam P eterso n of

O F F IC E R S
H . G. N o r t h e y , P r e s id e n t
R . W . W a i t e , V ic e P r e s id e n t
C a r l e t o n S i a s , V ic e P r e s id e n t
J . J . M i l l e r , C a s h ie r
F r a n c is R . L a B a r r e , A ss’t C a s h ie r
V . S p a l d i n g M i l l e r , A ss’t C a s h ie r

D IR E C T O R S
Nathan N orthey
C. F . A l s t a d t
Cl a r e n c e E . Ca m p b e l l
H a r r y A . L im b e r t
C a r l e t o n S ia s
W i l l E . Og le
C. R . D a v is
R . W . W a it e
H a r r y G. N o r t h e y
K . L . B ragdon
J . J . M il l e r

N orthw estern Banker

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

January 1940

66

-•
ville Bank, w as to he closed on D ecem ­
b er 31st, it w as anounced by R. P.
Blake, cashier of th e M itchellville
Bank.
The closing of th e Ira office w ill
b rin g to a conclusion a b an k in g service
th a t has served th e Ira com m unity
w ith o u t a b reak since it w as organized
in 1904. The bank, p rim arily a farm
bank because its business w as chiefly
w ith in an a g ric u ltu ra l com m unity, w as

IOWA

NEWS

—

form ed 35 y ears ago w ith B. F. B aker
as its first president.

Dies in Spencer
Services w ere held in Spencer re ­
cently for H. B ruce Noll, 71, president
of th e Clay county fair and president
of th e F a rm e rs T ru st and Savings
B ank of Spencer.
Mr. Noll died from cancer a t his
home. His h ealth began to fail last

fall. He w as tak en to a R ochester,
M innesota hospital several w eeks ago.
Mr. N oll’s wife, four children by
his first m arriage, a b ro th e r and th ree
sisters survive.

Resigns
B ert W asson, w ho has been con­
nected w ith th e Jasp er County Savings
Bank, N ew ton, has resigned as assist­
a n t cashier and w ill leave for Arizona,

Iowa Interest Rates
H E follow ing c h a rt show s th e in te re st ra tes paid on
deposits by a n u m b er of Iow a banks. M uch of th is in ­
form ation w as g ath ered th ro u g h personal survey, by Asso­
ciate E d ito r J. A. Sarazen, and since it w as im possible for
him to call on all th e b anks at th e sam e tim e, every bank
in th e sta te is not listed. F ig u res for o th er b anks w ill be
published from tim e to time.
T ow n

In te r e st paid
on s a v in g s

A f to n ............ .............. 2 %
A n a m o s a . . . . .............. 2
A n d re w . . . . .............. 2
A r t h u r ......... .............. 2
A tla n tic . . . . .............. 1
B a ld w in . . . . .............. 2
B a t t l e C re e k . ..............2
L i m it 1M
B a y a rd ............
B o o n e ............................ 2
B o o n e ................. 2 % to $500
$500, to $2,500
1%, o v e r $2,500
C a rro ll ......... .............. 2
C e d a r R a p id s ............ 1
C e n te rv ille . . .............. 2
C a s c a d e ......... .............. 2y2
C h a rle s C ity .............. 2
C h a rito n . . . . .............. 2
C la re n c e . . . . .............. 2
C la rk s v ille . . .............. 2
C la rio n ......... .............. 2
C h e ro k e e . . . .............. 2
C lin to n ......... .............. 1
C o rn in g . . . . .............. 0
C re sc o ............ .............. 2
C re s to n ......... .............. 1
C ro m w e ll . . . .............. 2
D a lla s C e n te r ............ 1%
D a n b u r y . . . . .............. 0
D e c o ra h . . . . .............. 2
D e lh i .............. .............. 2 %
D e W i t t . . . . .............. 1
D. M.
D e W i tt . . . . .............. 2
D u b u q u e . . . . .............. 1%
D u r a n t ......... .............. 1
D y e rs v ille . . . .............. i y 2
E ld o ra ............ . . . 2 % t o $500
1% a b o v e $500
E ld r id g e . . . . .............. 2
E lk a d e r ......... .............. 2
E p w o rth . . . .
E s th e r v ille . . .............. 2
F a irfie ld . . . . .............. 1
F a r le y ............ .............. 2
F o r t D odge . .............. 2
F o r t M ad iso n .............. 2
G lenw ood . . .
G re e n e ............ .............. 2
G rin n e ll . . . . .............. 2
G ra n d M o u n d ............ 2
H a m p to n . . . .............. 1
H a r la n ......... .............. 1
H a r l a n ......... .............. 2
H a y e s v ille . . . .............. 2
H e d ric k ......... .............. 2
H o p k in to n . . .............. 2
H o rn ic k . . . . .............. 2
Id a G ro v e . . . .............. 2
In d e p e n d e n c e .............. 2
I n d ia n o la . . . .............. 2

N orthw estern B anker

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

I n te rest paid
on 6 m on ths C D ’s

In te rest paid
on 12 m o n th s C D ’s

2%
2
2
2
1
2

2%
2%
2
2
1
2

2
2

2y2
2%

2
1
2
2%
2
2
2
2
2
1%
1
0
2
1
2
1%
0
2
2%
1

2%
1
2
2y2
2
2
2
2%
2
2
1
0
2
1
2
iy 2
0
2%
2%
1

2
1%
1
iy 3

2

2
2
2
1%

2
2
2
2
iy 2

2
2
2
2
2
2%
2
2
2
2
2%
2
2

2
2
2
2
2
2%
2
2
2
2
2%
2%
2

2
2

2
2

January 19JO

1
2

In te r e st paid
In te rest paid
In te r e st paid
on sa v in g s
on 12 m on ths C l
on 6 m on ths C D ’s
L i m it 1M
L i m it 1M
L im it 1M
Io w a C ity ............ ___ 2
2
2
Io w a C i t y ............ li /2 % u p t o $5,000, 1 % 1
1
f r o m $5,000 to $10,000,
y2 % $ 1 0 ,0 0 0 to $20,000
J e f f e r s o n ............ ___ 2
2
2
K e n t ....................... ___ 2
2
2
K e o k u k ................. ___ 1
1
1
K ir o n ..................... ___ 2
2
2
2
K n o x v ille ............ ___ 2
2
L e n o x ................... ___ 2
2
2
2
2
L e M a rs .............. ___ 2
L o w d e n ................. ___ 2
2
2
L u x e m b u r g .........
2
iy 2
M a n c h e s te r ......... ___ 2
2
2
M a n n in g .............. ___ 2
2
2
M a p le to n ............ ___ 2
2
2%
M a p le to n ............ ___ 2
2
2
M a q u o k e ta ......... ___ 2
2
2
2
M a r s h a llto w n . . ___ 2
2
M a r s h a llto w n . . • - 1%
L im it 5M
M a r e n g o .............. ___ 2
2
2%
M aso n C ity . . . . ___ 1
1
1
M a rio n ................... ___ 2
2
2
M e c h a n ic s v ille . ___ 2
M in b u r n .............. . . . . i y 2
2
iy 2
M o n tic e llo ............ ___ 2
2
2%
M o u n t P le a s a n t ___ 2
2
2%
M u s c a tin e ............ ___ 1
1
1
M u s c a t i n e ............ ___ 2
2
2
N a s h u a ................ . . . . 2 %
2%
2%
N o r th E n g lis h . . ___ 2
2
2
N o r w a lk .............. ___ 2
2
2
L i m it 1M
L im it 1M
L i m it 1M
N e v a d a ..................... ___ 2
2
2
N e w H a m p to n . . ___ 2
2
2
N e w to n ................ ___ 2
2
2
O elw ein ................ ___ 1
1
1
O d e b o ld t .............. ___ 2
2
2
O g d en ................... ___ 2
2
2
O n slo w ................ ___ 2
2
2
O sa g e ..................... ___ 2
2
2
O sc e o la ................
O sk a lo o sa ............ ___ 1
2
2
O t t u m w a .............. ----- 1
P e r r y ................... . . . . i y 2
2
iy 2
P o stv ill-e .............. . . . . i y 2
2
i%
P r e s c o tt .............. ___ 2
2
2
R ed O a k .............. ___ 2
2
2
R ip p e y ................... . . . . i y 2
2
2
S c h le sw ig ............
2%
2%
S c r a n to n .............. ___ 2
2
2
S h e n a n d o a h . . . . ___ 2
2
2
S io u x C i t y ......... 2 % o n 1 s t $2,500, 1 % o n 2 n d $2,500 a n d n o th in g o v er.
S io u x C i t y ......... 2 % to $1,000, 1 % on t h e n e x t $1,500 a n d n o th in g o v er.
2
S lo a n ..................... ___ 2
2
S p e n c e r ................ ___ 2
2%
2%
2
2
S p r a g u e v ille . . . . ___ 2
2
S t a n w o o d ............ ___ 2
2%
S to r m L a k e . . . . . 2 % to 1M
1
1
S to r y C ity ......... ___ 2
2
2
2
2
S tr a w b e r r y P t, . ___ 2
S u m n e r ................ ___ 2
2
2
2
2
T e m p le to n ......... ___ 2
T ip to n ................... ___ 2
2
2%
2
2
V in to n ................... ___ 2
2
W a ll L a k e .........
iy 2
W a te r v ille ......... . . . . 2 y ,
2%
2y2
W a u k o n ..............
2
i%
2
2
W a s h in g to n . . . . ___ 1
2
2
W e s t B u r lin g to n . . . i y 2
2
2
W e s t g a t e ....................... 2
2
W e s t U n io n . . . .......... 2
1%
2
2
W illia m s b u r g . . ___ 2
2
2
W i n te r s e t ............ ___ 2
2
W o r t h in g to n . . . ___ 2
2%
2
2
W y o m in g ............ ___ 2
T ow n

67
w here he goes for his h ealth, w hich
has been im p aired due to sinus in ­
fection.
Mr. W asson w as connected w ith th e
R easnor B ank for nine y ears before
com ing to N ew ton.
H. H. M orrison has been nam ed as
“te lle r” an d w ill occupy Mr. W asson’s
cage a t th e b an k and Miss Iren e Oartw eig of B ax ter succeeds Mr. M orrison
as head bookkeeper.

Bank Choir Sings Carols

New Director
T he board of d irecto rs of th e Avoca
State B ank has elected Mrs. H e n rie tta
S tender as d irecto r to fill th e u n e x ­
pired te rm of h e r husband, R udolph
Stender. Mr. S tender w as p resid en t
of th e b an k before his d eath a few
w eeks ago.

On the recent F rid a y and S atu rd ay preceding C hristm as, p atro ns of the IowaDes M oines N atio n al B ank and T ru st Company were en te rta in ed w ith C hrist­
mas Carols p recented by m em bers of th e B ank Choir. The Choir, as pic­
tu red above, stood above the stairw ay , facin g south tow ard the main lobby.

County Meeting
T he Lyon C ounty B an k ers associa­
tion held a d in n er and inform al dis­
cussion in Rock Rapids recently, w ith
ab o u t 40 m em bers and guests a tte n d ­
ing.
W. P. Moeller, C. L. H. V agts and
A lb ert H am an n of th e L yon C ounty
Soil C onservation association, w ere
p re se n t as guests. The h an d lin g of
pap ers and problem s relatin g to corn
loans w ere th o ro u g h ly discussed.
Also p re se n t w ere C. R. Gossett,
p resid en t of the Iow a B ankers asso­
ciation, of Sioux City, w ho gave a
sh o rt talk.

Elected President
D irectors of th e C itizens Savings
B ank of E ldora elected N. R. Van
A very p resid en t to fill th e vacancy
caused by th e d eath of th e late J. F.
H ardin. J. L. C am eron w as elected
vice p resid en t to succeed Mr. V an
A very.
J. F. H ardin, cashier, w as elected a
m em ber of th e board of directors.

Heads Company
B oard of directors of th e New L on­
don D evelopm ent C om pany elected C.
H. Carlson, cashier of th e Iow a State
B ank as its p resid en t for th e com ing
y e a r to succeed M ark Orndorff, w ho
has served since it w as organized m ore
th a n a y e a r ago.
O ther officers for th e com ing y e a r
are R alph M cK innon, vice president,
E. E. W essel, secretary , and R alph
E ckles w as re-elected tre a su re r.

I N

S IO U X

C I T Y

• - •

STATEM ENT OF CONDITION DECEMBER 30, 1939
RESOURCES
Cash and Due From Banks................................................. $3,742,221.19
Loans and D iscounts............................................................. 2,210,883.58
United States Government Bonds....................................
288,777.89
State, County, and Municipal Bonds................................
459,963.21
510,560.70
Other Bonds and Securities................................................
Stock in Federal Reserve Bank........................................
17,250.00
Bank Building, Furniture, and Fixtures..........................
190,000.00
Other Assets .........................................................................
2,173.70
$7,421,830.27
L IA B IL IT IE S
Capital
..............................................................$400,000.00
Surplus ............................................................. 175,000.00
UndividedProfits ............................................... 40,636.71
Reserve forContingencies................................ 75,000.00
TO TAL CAPITAL A C C O U N T .............................. $ 690,636.71
Reserve for Taxes and Interest........................................
10,911.93
Other Liabilities ...................................................................
’ 95.00
D E P O SIT S ........................................................................... 6,720,186Ï63
$7,421,830.27

New Office
In com pliance w ith th e re q u e st of
resid en ts of H a rris an d vicinity, th e
Sibley State B ank has opened a H arris
office of the Sibley S tate Bank.
E lm er G eronsin, w ho has been em-

Member Federal Deposit Insurance Corporation

N orthw estern B anker

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

January 1940

68

They Discussed Corn Loans

A num ber of Iow a Group Six b an k ers m et in Des Moines
last m onth to h ear William C. McArthur of W ashington,
D. C., chief of the corn loan section of th e n o rth cen tral
division, A gricu ltu ra l A dju stm en t A dm in istratio n , discuss
provisions re latin g to th e new corn loan program . Among
those a t the m eeting p ictu red above, read in g from le ft to
rig h t, were Paul Huston, vice p resid en t Peoples Savings

ployed by th e Sibley b an k for th e
p ast five years, w ill m anage th e H a rris
office.

To Baxter
Thom as L. W olfe, of L ytton, has ac­
cepted a position in th e S tate Savings
Bank, succeeding George Geise, w ho
resigned his position as cashier of th a t
in stitu tio n to go into business for h im ­
self.
Mr. W olfe w orked in th e b an k of
L y tto n for some tim e w hen sta rtin g
in th e b an k in g business. H e th e n
w en t to th e B enton C ounty Savings
B ank at N orw ay, Iowa, w here he has
been a ssista n t cashier for th e p ast tw o
years.

B ank, C edar R apids; Mr. McArthur; R. R. Rollins, vice p res­
id en t B ankers T ru st Company, Des Moines, and chairm an of
Group Six; O. D. Klein, chairm an of th e Iow a A. A. A. Com­
m ittee, Des M oines; E. A. Ellison, com m ittee loan super­
v iso r; F. W. Roewe, Iow a A. A. A. com m ittee; Jesse Alton,
crop insurance supervisor; and H. E. Hazen, A. A. A. Com­
m ittee.

To Carlisle
C. T. Sim m ons of Des Moines is the
new a ssistan t bookkeeper at th e H artford-Carlisle Savings B ank succeeding
Dale P en d ry w ho resigned. Mr. Sim­
m ons comes w ell qualified for this
position since he has had several y ears
experience in banking.

American National, Chicago
One Hour Less
All b anks of th e Quad cities, includ­
ing th e D avenport B ank and T ru st
Com pany and th e F irs t T ru st and Sav­
ings B ank in D avenport, have gone
on a one h o u r sh o rter schedule of
h o u rs d u rin g w hich th e y are open to
th e public, it is announced by the

Another New Record!
Clinton County bankers are proud of the rec­
ords made year after year by our cattle
feeders and 4-H boys and girls. At the
1939 International Livestock Show in
Chicago 26 per cent of the entire
Beef Lot entries were from Clinton
county and 32 per cent of the
prize money in this class went
to Clinton county feeders!

T he
City N ational B ank
CLINTON, IO W A
Member Federal Deposit Insurance Corporation

N orthw estern B anker

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

January 19^0

Quad-City Clearing H ouse association.
H ours are from 9:30 a. m. to 2:30 p.
m. in stead of from 9 a. m. to 3 p. m. as
form erly. B anks in D avenport and
Rock Island are open from 9:30 a. m.
to 1 p. m. on Saturdays, w hile ban k s in
Moline and E ast Moline are open from
9:30 a. m. to 12:30 noon on W ednesday.

N ineteen th irty -n in e earnings of
$29.56 p er sh are on th e com m on stock
of th e A m erican N ational B ank and
T ru st Com pany of Chicago w ere an ­
nounced to th e b a n k ’s stockholders at
th e ir an n u al m eeting on Ja n u a ry 9th.
T his com pares w ith $23.41 p er sh are
earned in 1938.
The 1939 earnings of $295,687.37 re p ­
resen t n e t operating profits for th e
y ear after pay m en t of dividends on p re ­
ferred stock, and afte r adequately p ro ­
viding for taxes in addition to reserves
for contingencies, ag ain st w hich all
know n losses have been charged and
recoveries credited. T he rep o rted e a rn ­
ings are also exclusive of profit on th e
sale of securities from th e b a n k ’s in ­
v estm en t portfolio. The excess of m a r­
k et value over carry in g value of se­
curities now held by th e b ank w as
su b stan tially increased du rin g th e
year.
D ividends of $6 p er share of com m on
stock, to taling $60,000, w ere paid d u r­
ing 1939, and $50,000 w as added to th e
p referred stock re tire m e n t fund, b rin g ­
ing th is fund to a to tal of $100,000. T he
balance of th e b a n k ’s profits is reflected
in th e undivided profits account, w hich
totaled $554,030.51 on D ecem ber 30th,
com pared w ith $368,343.14 a t th e end
of 1938.
The A m erican N ational show ed a
su b stan tial g ro w th du rin g th e year,
deposits having increased from $57,-

69

—• I O W A
253,578.97 to $69,611,148.99, w hile total
resources reach ed a new h ig h for th e
b an k of $73,855,969.41. T otal loans
show ed a t 44 p e r cent g ain for th e year.
The b a n k ’s cash position m ain tain ed
abo u t th e sam e p ro p o rtio n to to tal re ­
sources a t th e end of th e y e a r as a t th e
beginning, w hile holdings of U nited
S tates g o v ern m en t obligations de­
creased slig h tly in dollars. T he b an k
held $12,896,817.08 in m unicipal and
o th er m ark etab le secu rities on Decem­
b er 30, 1939, as com pared to $9,819,580.13 on D ecem ber 31, 1938.

NEWS

•—

$824,327,174 com pared w ith $658,873,937
a y ear ago. Cash on h an d and due
from banks am ounted to $391,152,269
as com pared w ith $268,283,929; U. S.
g o v ern m en t obligations to $170,359,459
ag ain st $108,241,303; b a n k e rs’ accept­
ances and call loans to $39,844,637
ag ain st $57,811,285, and loans and dis­
counts to $121,540,434 ag ain st $125,340,246.
C apital rem ained unchanged at $20,000,000 and su rp lu s a t $50,000,000. U n­
divided profits w ere $6,744,055, an in ­

crease for th e y ear of $1,111,402 after
th e u sual an n u al dividends of $3,600,000 ($1.80 p er sh are). The indicated
n e t earnings on th e b a n k ’s 2,000,000
shares (par $10) am ounted to $2.36 per
sh are for 1939 as com pared w ith $2.30
p er sh are for th e preceding year.

Continued Gains
A $13,543,111 gain in in su ran ce in
force, to a to tal of $440,570,713 as of
Decem ber 31, 1939, is rep o rted in the
55th an n u al statem en t of N orthw est-

Chase National
T he sta te m e n t of th e Chase N ational
B ank for D ecem ber 30, 1939, w as m ade
public J a n u a ry 3, 1940. The deposits
of th e b an k on th a t date w ere $2,803,730.000 com pared w ith $2,817,977,000 on
S eptem ber 30, 1939, an d $2,234,333,000
on D ecem ber 31, 1938.
T otal resources am ounted to $3,085,819.000 com pared w ith $3,097,011,000 on
S eptem ber 30th, and $2,523,167,000 a
y e a r ago; cash in th e b a n k ’s v au lts and
on deposit w ith th e F ed eral R eserve
B ank an d o th er banks, $1,293,143,000
com pared w ith $1,316,611,000 and $861,439.000 on th e respective dates; in v e st­
m en ts in U nited States g o v ern m en t se­
cu rities, $820,170,000 com pared w ith
$808,804,000 and $639,878,000; loans and
discounts, $636,176,000 com pared w ith
$601,290,000 an d $638,734,000.
On D ecem ber 30, 1939, th e capital of
th e b an k w as $100,270,000 and th e s u r­
plus $100,270,000, b oth am o u n ts u n ­
changed.
Because of a change d u rin g th e y ear
in th e schedule of dates for th e d eclara­
tio n of dividends, th re e sem i-annual
dividends of $5,180,000 each, to talin g
$15,540,000, have been charged ag ain st
th e undiv id ed profits account in the
calen d ar y e a r 1939, w h ereas in th e y e a r
1938 only tw o such dividends w ere so
charged in th e tw elve-m onth period.
T his ex p lan atio n is needed in com par­
ing th e undivided profits on D ecem ber
31, 1938, am o u n tin g to $35,247,000, w ith
th e balance in th e undivided profits
account on D ecem ber 30, 1939, a m o u n t­
ing to $33,022,000.
The n e t earn in g s of th e Chase N a­
tional B ank for th e y e a r 1939 am ounted
to $13,315,000, or $1.80 per share, com ­
p ared w ith $14,486,000, or $1.96 p er
share, in 1938.

Chemical
In its statem en t for D ecem ber 30th,
th e Chem ical B ank & T ru st Com pany,
N ew York, rep o rted deposits of $737,104,292, an increase of $169,343,939 over
D ecem ber 31, 1938, and total assets of

Guaranty Trust Company
of New York
1 4 0 Broadw ay
Fifth Ave. at 44th St.
LONDON

P A R IS

Madison Ave. at 60th St.
BRUSSELS

L IV E R P O O L

HAVRE

ANTW ERP

C ondensed S tatem en t o f C on d ition , D ecem b er 3 1 , 1 9 3 9
RESOURCES
Cash on Hand, in Federal Reserve Rank, and
Due from Banks and B a n k e r s..............................$ 1,040,901,764.23
U. S. Government O b ligation s....................................
729,600,979.13
Public S e c u r i t i e s ...........................................................
57,848,398.56
Stock of the Federal Reserve B a n k ..............................
7,800.000.00
26,378,612.54
Other Securities and O b lig a t io n s ..............................
Loans and Bills P u r c h a s e d ..........................................
500.360,310.08
Credits Granted on Acceptances....................................
14,620,349.24
Items in Transit with Foreign Branches . . . .
147,948.35
Accrued Interest and Accounts Receivable . . .
9,052,305.77
Real Estate Bonds and M ortgages.................................
1,803,142.33
2,388,513,810.23
Bank B u ild in g s.................................................................
11,754,741.69
1,365,713.09
Other Real E s ta te ...........................................................
Total R e s o u r c e s ..............................$2,401,634,265.01
LIABILITIES
Outstanding Checks . . . .

13,528,652.49
$2,088,427,345.88

A cceptances........................................... $21,716,899.57
Less: Own Acceptances
Held for Investment . . . .
7,096,550.33
14,620.349.24
Liability as Endorser on Acceptances and
Foreign B i lls .................................................................
Dividend Payable January 2,1940 ................................
Miscellaneous Accounts Payable, Accrued
Taxes, etc.........................................................................

2,201,978.00
2.700,000.00
18.982.637.54
2,126,932,310.66

C a p ita l............................................... $ 90.000.000.00
Surplus F u n d .................................... 170,000.000.00
Undivided P r o f i t s ........................
14,701.954.35
Total CapitalF u n d s ...........................

274,701,954.35

Total L i a b i l i t i e s .............................................$2,401,634,265.01
S e c u r it ie s c a r r ie d a t $ 1 8 ,3 2 2 ,3 5 3 .7 1 in th e a b o v e S ta te m e n t a re p le d g e d to q u a lify fo r
fid u cia r y p o w e rs, to sec u r e p u b lic m o n ie s a s re q u ir ed b y la w , a n d fo r o th er p u r p o ses.

M em ber F ederal D eposit Insu ran ce Corporation

N orthw estern B anker

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

January 19 k0

70
e rn N ational Life of M inneapolis. This
com pares w ith a gain of $8,490,777 re ­
p o rted at th e end of 1938.
A ppearing as usual on New Y ear’s
Day, N o rth w estern N ational’s sta te ­
m ent once again is the first com plete
and final life in su ran ce com pany bal­
ance sheet to be published.
“The fact th a t the 1939 gain in in ­
suran ce in force w as 60 p er cent g reat­
er th a n the 1938 gain—although the
volum e of new business w as only
slightly g reater — is gratify in g and
highly significant,” said O. J. Arnold,
president, in com m enting on th e state­
m ent. “The essential reason is a fu r­
th e r im provem ent in the com pany’s
renew al ratio —th e ability, and d eter­
m ination, of policyholders to keep th eir
in su rance in force. N ot only does this
reflect a b etter financial condition on
the p a rt of the average A m erican fam ­
ily, b u t also an encouraging response
to th e com pany’s thoroughgoing pro­
gram of lapse prevention. Sales of
paid-for new business for th e y ear to ­
taled $65,052,626 com pared w ith $64,291,283 in 1938.”
N o rth w estern N ational’s adm itted
assets show an increase of $5,063,567
to a total of $75,205,180, com pared w ith
$70,141,613 as of the end of th e preced­
ing year. Contingency reserves and
surplus, afte r settin g aside volu n tary
additions of $160,911 to special reserves

YOUR GRACIOUS HOST
FROM COAST TO COAST

TheBlachstonc

for disability, annuities, and asset fluc­
tuation, stood at $5,457,918 as of De­
cem ber 31st, com pared w ith $5,265,319
th e preceding year-end.
H oldings of U. S. governm ent securi­
ties and fully guaran teed bonds of
governm ent agencies totaled $24,313,613, com pared w ith $24,295,794 th e y ear
preceding. O t h e r b o n d holdings
am o u n t to $24,010,911 as against $24,206,788 a y ear ago. Total bonds re p re ­
sent 64.3 p er cent of assets as com pared
w ith 57.9 p er cent for th e life in su r­
ance business as a whole, as estim ated
by th e A ssociation of Life Insu ran ce
P residents. F i r s t m ortgage loans
show ed a su b stan tial increase, to a
to tal of $7,292,650 com pared w ith $4,525,481 as of th e end of 1938. T he in ­
crease w as principally accounted for
by expansion in FH A in su red loans on
city homes. Cash stood at $4,474,631 as
of D ecem ber 31.
Real estate owned, including H om e
Office building and real estate sold u n ­
der contract, decreased to $2,882,675,
com pared w ith $2,919,471 as of th e end
of th e previous year, or 3.8 p er cent of
total assets, com pared w ith 7.2 p er cent
for th e business as a whole.
T here w as a decrease in the com ­
p an y ’s policy loans to $9,565,148, from
$9,629,528 at the end of th e preceding
year, or from 13.7 p er cent to 12.7 per
cent of to tal assets.

O pened fo r B usiness O ctober 15, 1934

Statement of the

IOWA STATE BANK & TRUST COMPANY
Iowa City, Iowa
DECEMBER 30, 1939

TheTouin fiouse

f

RESOURCES
C a s h a n d D u e fro m B a n k s ........................................................................... $883,707.43
U . S. B o n d s ........................................................................................................ 165,014.69
O th e r B o n d s a n d S e c u r i t i e s ........................................................................ 136,881.44
C A SH O R IT S E Q U IV A L E N T
L o a n s a n d D i s c o u n t s ................
O v e r d r a f ts .....................................
B a n k in g H o u s e ............................
F u r n i t u r e a n d F i x t u r e s ............
M u n ic ip a l W a r r a n t s ..............

$1,185,603.56
. 1,544,779.99
90.26
53.300.00
15.400.00
16,504.89
$2,815,678.70

f

L IA B IL IT IE S
C a p ita l S to c k ........................................................................................................................................ $ 100,000.00
S u r p lu s a n d U n d iv id e d P r o f i t s ......................................................................................................
100,143.38
R e s e r v e f o r I n t e r e s t .............................................................................................................................
293.07
D e p o s its .................................................................................................................................................. 2,615,242.25
$2,815,678.70

A . S . K I R K E B Y , Managing Director

K I R K E B y
H O T E L S
N orthw estern B anker

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

January 1940

O F F IC E R S
B e n S. S u m m e e w i l l , P r e s id e n t
D r . E . M. M a c E w e n , V ice P r e s id e n t
M . B . G u t h r i e , C a s h ie r
W . F . S c h m i d t , A ss ’t C a s h ie r
M . E . T a y l o r , A u d ito r
W . W . S u m m e e w i l l , C re d it M g r.

D IR E C T O R S
D r . E . M. MacE w e n
George J . K e l l e r
F rank K rall
M. B . G u t h r i e
Geo r g e A. T h o m p s o n
Gu y A. S t e v e n s
B e n S. S u m m e r w il l

71

-•
P rem iu m collections am ounted to
$10,630,054 in 1939, and total incom e
reached a new peak of $15,160,680.
P ay m en ts to beneficiaries of decreased
policyholders totaled $2,571,751; p ay­
m ents to living policyholders, exclud­
ing policy loans, to taled $3,478,712.
Since organization in 1885, p aym ents
to policyholders and beneficiaries have
to taled $107,193,412.
“Over th e 10 y e a r period 1929-39
N o rth w e ste rn N atio n al’s in su ran ce in
force in creased 35 p er cent, com pared
to a 10 p er cent gain for th e business
as a whole; its assets doubled w hile
th e assets of all com panies grew 67 p er
cent,” Mr. A rnold points out. “F o r th e
fu tu re, N w N L pledges continued alle­
giance to th ese tw o principles: in th e
care and m an ag em en t of resources, the
utm o st caution an d conservatism ; in
th e search for w ays to m ake life in s u r­
ance m ore econom ical and m ore useful,
th e u tm o st in p ro gressiveness and
open-m indedness,” he said.

IOWA

NEWS

—

d u rin g th e p ast tw elve m onths.
D eposits on Decem ber 31, 1938, w ere
$5,342,792, and on Decem ber 30, 1939,
th e y w ere $6,212,474, or an increase of
$869,681.
T his indicates a v ery su b stan tial
g ro w th in th is w ell-know n in stitution,
and reflects a g reat deal of credit upon
th e officers, w ho are: J. F. R ingland,
p resident; J. C. Moore, vice president;
A. A. Bibus, vice presid en t and cash­
ier; J. M. Kane, a ssistan t cashier; J. G.
M cGarrough, a ssistan t cashier, and C.
W. M essenger, auditor.
L oans and discounts also increased
$656,194. On Decem ber 31, 1938, loans
and discounts w ere $1,819,509, and at

the call of D ecem ber 30, 1939, th e loans
and discounts w ere $2,475,703.
The capital of the b an k is $250,000
and th e su rplus is $225,000, w ith re ­
serves and undivided profits of $23,956.

Living Cost Changes
The “real incom e” of Mr. and Mrs.
A m erican Public, after th ree m onths
of E u ro p ean W ar, has suffered little
from w ar-inflated prices. The Publics
on Decem ber 1, 1939 had a purchasing
pow er tw elve cents on th e dollar
h ig h er th an th a t date a y ear earlier.
T his w as due largely to an increase of
fourteen cents cash incom e on th e dol­
lar w hich w as far m ore th an sufficient

THE NORTHERN TRUST COMPANY
C H IC A G O

Deposits Increase Over
16 Per Cent
The Stock Y ards N ational B ank of
South St. Paul, M innesota, h ad an in ­
crease in its deposits of over 16 p er cent

S t a t e m e n t o f C o n d itio n
A t th e c lo se o f b u s in e s s , D e c e m b e r 3 0 , 1939

RESOURCES
Dem and Loans (S e c u r e d b y C o lla te ra l ) .......................... $ 6,652,583.99
Tim e Loans ( S e c u r e d b y C o lla te r a l).....................................................
7,806,6/8.80
Other Loans and D isco u n ts......................................... 23,825,419.89
U. S. Government S ecu rities....................................... 103,238,348.06
( I n c lu d in g $16,000,000.00 p le d g e d to se c u r e d e p o s its o f U . S .
G o v t, a n d o t h e r P u b lic m o n ie s as r e q u ir e d b y L a w )

Other Bonds and S ecu rities.........................................
( I n c lu d in g $500,000.00 d e p o s i te d w i th
u n d e r T r u s t A c t)

89,853,037.79

S ta te A u th o r itie s

270,000.00
Federal Reserve Bank S tock ........................................
Bank P rem ises..................................................................
1,400,000.00
Custom ers’ Liability, A ccount Letters of Credit
and A cceptances...........................................................
500,853.83
Other R esources...............................................................
814,297.50
Cash and Due from B an ks........................................... 160,224,400.13
TOTAL................................................................................. $394,585,619.99
LIABILITIES

J . F . R IN G L A N D

SELL YOUR BANK
The “Walters” Way
Without Publicity
Qualified, carefully investigated bank
employees furnished free
T H E CHARLES E. W A LTER S CO.
Omaha, Nebraska

Capital S tock .....................................................................$ 3,000,000.00
Surplus F u n d ....................................................................
6,000,000.00
Undivided Profits.............................................................
4,522,649.98
Reserve for Taxes, Interest, e tc................................... 10,018,889.76
Dividend Payable Jan. 2, 1940.....................................
135,000.00
Letters of Credit and Acceptances O u tsta n d in g ..
582,799.35
Other L iabilities...............................................................
379,924.52
D eposits:
D em and .......................................... $289,524,000.17
T im e................................................. 80,422,356.21 369,946,356.38
TOTAL................................................................................. $394,585,619.99
M e m b e r F e d era l D e p o s it I n s u r a n c e C o rp o ra tio n

N orthw estern Banker

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

Januarij 19W)

72

•

IOW A

NEWS

m issions and th e like, w ere four cents
on th e dollar h ig h er D ecem ber 1, 1939,
th a n a y ear earlier.
Mr. and Mrs. Public, in th is study,
receive incom e from w ages, in v est­
m en ts and o th er sources in proportion
to th e national d istrib u tio n of such
paym ents. T h eir living expenses like­
w ise are those of average household­
ers. T h eir “real incom e,” or p u rch as­
ing power, is th e ir actual ability to
buy reg u larly needed goods and serv ­
ice.
“Real incom e” of th e Publics is not
a m ere su b tractio n of cash income
from cash outgo, w hich w ould be an

to offset a rise of one cent on th e dollar
in living costs over th e like 1938 date,
according to a m o n th ly stu d y of w h at
people in th e U nted States get and
spend, m ade public by In v esto rs
Syndicate.
P erh ap s Mr. and Mrs. Public felt
like p a ra p h ra sin g h isto rian M otley’s
rem a rk about “give m e th e lu x u ries of
life and I w ill gladly dispense w ith th e
necessities,” as th e y noted th a t th e
th re e essential living costs — food,
sh elte r and clothing—w ere u n changed
from prices prev ailin g D ecem ber 1,
1938, w hile m iscellaneous item s, such
as shaves, m anicures, am u sem en t ad-

C h e m ic a l
b a n k
&-*

TR U ST COM PANY
165 Broadway, New York
F o u n d ed 1 8 2 4

CONDENSED STATEMENT OF CONDITION
A t the close of business, December 3 0 , 1939

ASSETS
$391,152,269.46
C a s h a n d D u e fro m B a n k s _ _____
U . S. G o v e r n m e n t. O b lig a tio n s ,
170,359,459.43
D ir e c t a n d F u lly G u a r a n te e d .
39,844,636.93
B a n k e rs ’ A c c e p ta n c e s a n d C a ll L o a n s
42,882, 781.02
S ta te a n d M u n ic ip a l B o n d s -------------------43,518,644.75
O t h e r B o n d s a n d I n v e s tm e n ts --------------L o a n s a n d D is c o u n ts .---------------------------- 121,540,433.76
1.00
B a n k in g H o u s e s -----.-----------------------------5,333,275.99
O t h e r R e a l E s ta te --------- -----------------------2,338,664.51
M o rtg a g e s .
5,564,852.81
C r e d its G r a n t e d o n A c c e p ta n c e s .
•1,792,154.72
O t h e r A s s e ts ------------------------ —
$824,327,174-38

LIABILITIES
_____
C a p ita l S to c k .
_____
S u r p lu s .
_____
U n d iv id e d P ro fits---------

$20,000,000.00

50,000,000.00
6,744,054.83 $76,744,054.83
----------------------900,000.00
D iv id e n d P a y a b le Ja n . 2, 1940 -----------R e se rv e s, T a x e s, I n te r e s t, e tc --------------3,324,718.84
A c c e p ta n c e s O u ts ta n d in g $8,600,457.24

(less o<wn acceptances
held in portfolio)

2,515,902.96

6,084,554.28

O t h e r L ia b ilitie s ----------- ------------------------D e p o s its (including Official and Certified
Checks Outstanding $4 ,8 7 8 ,0 3 5 .4 1 )

169,554.58
737,104,291.85
$824,327,174.38

U . S. Government Obligations and other securities carried at
$ 16,702, 102.90 in the foregoing statement are deposited to

secure public funds and for other purposes required by law.
C h a r te r M e m b e r b le w Y o r k

Me m b e r

•

Clearing H o u s e

A s s o c ia tio n

F e d e r a l R e se rv e S y s te m

M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t i o n

index of savings ra th e r th a n “real in ­
come,” b u t an average relativ e figure
of incom e and outgo designed to show
how th e cost of living affects th e ad ­
ju sted dollar income.
“Most prices, although up from the
low level of last Sum m er, w ere alm ost
th e sam e as of Decem ber 1, 1938,” com­
m ents In v esto rs Syndicate’s consum er
study. “One dollar w ould go as far in
buying food, clothing and housing for
a fam ily. F o r m iscellaneous needs,
$1.04 w as req u ired to buy w h at w as a
d o llar’s w o rth th e y ear before (De­
cem ber 1, 1938), b u t th e to tal living
costs of th e typical fam ily could be
supplied on th e basis of $1.01 to m atch
th e dollar of th e previous year.
“A rise of tw enty-one cents on th e
dollar over D ecem ber 1, 1938, enabled
w ages to lead th e gains in all sources
of cash income. The flood of dividend
paym ents—extras, increases, resu m p ­
tions—n ear th e final m o n th of th e
y ear b ro u g h t th e flow of incom e from
in v estm en ts to $1.18 com pared w ith
only $1 on D ecem ber 1, 1938, th ereb y
sw elling th e national incom e from th is
source.
“Salary checks, as w ell as wagee a rn e rs’ envelopes and stockholders
dividend checks, reflected the upsw ing
in in d u stry and trad e tow ard th e last
m onth of 1939. Salary checks w ere
being m ade out at th e ra te of $1.09 for
each dollar stam ped on th em in early
Decem ber, 1938.
“O ther income, such as business
m en ’s and farm ers’ earnings, w ere at
th e rate of $1.06 on Decem ber 1, 1939
for each $1 a y ear earlier.

Further Increase
T he increase in N ovem ber volum e
of savings, building and loan associa­
tion advances over th e sam e m o n th of
th e previous y ear w as 34.4 p er cent,
th e larg est im provem ent over 1938
business rep o rted for any of th e first
eleven m onths of 1939. A. D. T heo­
bald, a ssistan t vice presid en t of th e
U nited States Savings and Loan
League, says th a t th is w as th e sixth
successive m onth th a t saw m ore lend­
ing business th a n its co u n terp art
m onth in every y ear since 1930.
A total of $86,076,000 w as loaned for
new hom e construction, rep airs and
m odernization, purchase of hom es, re ­
financing and m iscellaneous purposes,
practically tw o-thirds of it being for
YOUR STATE BANKERS A SSO CIATIO N
O FFICIA L SAFE, V A U L T A N D
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

N orthw estern B anker

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Federal Reserve Bank of St. Louis

January 19W

73

• IOWA
th e b u y in g an d building of hom es.
Volum e w as 6.6 p er cen t less th a n in
O ctober in line w ith seasonal expecta­
tions, b u t th e fall-off w as considerably
less th a n b etw een th e tw o m o n th s in
1938.
“T he n o tew o rth y volum e of con­
stru c tio n loans for so late in th e year,
$26,607,000, is w itn ess to th e grow ing
stre n g th of th e rev iv al of in te re st in
hom e b uilding,” said Mr. Theobald.
“As w ould be expected th e co n stru c­
tio n loan volum e w as larg est in th e
Southeast, in C alifornia and ad jacen t
S o u th w estern states, w h ere th e cli­
m ate favors con tin u ed b uilding in
w in te r tim e, an d som ew hat su rp ris­
ingly in th e O hio-Tennessee-K entucky
d istrict. T hese th re e a reas account
for 42 p e r cen t of all th e co n stru ctio n
lending th e associations did in No­
vem ber. A b reakdow n by states show s
N ew Y ork th ird to Ohio an d Cali­
fo rn ia in th e n u m b er of savings and
loan advances going for new hom e
building.
“Illinois and Ohio h ad th e lead in
hom e reconditioning loans, each u tiliz­
ing m ore th a n $500,000 w o rth of th is
kind of credit. P en n sy lv an ia, New
York, N ew Jersey, and Illinois each ac­
counted for m ore th a n $2,000,000 of th e
loans to b u y hom es.”

Favoritism Unfair
“It h as been observed th a t a squ are
deal for th e railro ad s m eans a squ are
deal for th e tax p ay ers too.”
The w a te r ca rrie rs provide an ex­
trem ely a p t case in point. Out of each
dollar ta k e n in by these ca rrie rs re ­
p o rtin g to th e In te rs ta te Com m erce
Com m ission, about tw o cents goes for
taxes. T hey do n o t build or keep in
re p a ir th e channels on w hich th e y
operate—those are b u ilt an d m ain ­
tain ed by th e g o v ern m en t out of g en ­
eral funds co n trib u ted to public tre a s ­
u ries in taxes.
T he railroads, on th e o th er hand,
pay m ore th a n nin e cents out of each
dollar th e y receive, for taxes. On top
of th at, th e y m u st build and m ain tain
th e ir ow n roadw ays w ith o u t benefit of
ta x subsidies. T his tak es 23% cents
out of th a t dollar of revenue.
I t is clear th a t o th er com m on car­
rie rs th a n railro ad s are gen erally in
m uch th e sam e favored position as th e
w a te r carriers, th o u g h to a lesser ex­
ten t. A n u m b er of conclusive s u r­
veys, for instance, indicate th a t th e
tax es paid by th e hig h w ay carriers,
even th o u g h th e y m ake a superficially
im posing total, are far from adequate
to pay th e ir sh are of th e b uilding and
m ain ten an ce cost of th e public h ig h ­

NEWS

•

w ays used. Again, th e tax p ay er m u st
m ake up th e deficit—w hich ru n s to
trem endous figures.
T he evidence overw helm ingly in ­
dicates th a t of all th e m ajo r carriers,
only one, th e railroads, pay th e ir own
w ay. T he o thers are subsidized in
one w ay or a n o th er—some directly,
some indirectly. The oth ers are a
b u rd en to th e already overburdened
ta x p ay ers of city, state and nation.
T his is one reason w hy th e tra n sp o r­
ta tio n problem is one of our m ost im ­
p o rta n t dom estic problem s.

Help the Borrower
H om e-financing
in stitu tio n s
too
often in th e p ast have placed undue
em phasis on dollar delinquencies—

CONDENSED

“upon th e stan d in g of a m ortgage loan
on th e ledger”—tak in g th e unsound
position th a t a b o rro w er’s inability to
m eet his paym ents w as his problem
alone, for w hich he m u st find his own
solution.
T his criticism w as m ade in a recen t
issue of th e F ed eral H om e L oan B ank
R eview , official organ of th e F ed eral
H om e L oan B ank Board, in an article
w hich term ed such an attitu d e as a r­
chaic and urged financing in stitu tio n s
to probe each b o rro w er’s basic difficul­
ties and help him overcom e them ,
ra th e r th a n re stric t th e ir efforts to
those of a collection agency.
To prove its point, th e R eview cites
th e record of th e H om e Ow ners Loan
C orporation, th e $3,000,000,000 G overn­
m ent agency w hich refinanced m ore

STATEMENT

FIRST NATIONAL BANK
IN ST. L OU IS
A t the Close o f Busmess; D ecem ber 30, 1939

RESOURCES
Loans and Discounts
$ 59,641,794.97
U. S. Government Securities
51,773,337.57
Other Securities Guaranteed by U. S. Government
27,983,878.90
Other Bonds and Stocks
9,022,675.42
Stock in Federal Reserve Bank
420,000.00
Banking House, Improvements, Furniture and Fixtures
571,090.62
Other Real Kstate Owned
1,772,588.32
Customers’ Liability a/c Letters of Credit,
Acceptances, etc.
656,626.32
Accrued Interest Receivable
679,449.81
Overdrafts
10,006.09
Other Resources
6,475.78
Cash and Due from Banks
134,559,919.41
$287,097,843.21

LIABILITIES
Capital—Common
Surplus and Profits
Dividend Declared Payable February 29, 1940
Reserve Unallocated
Reserve for Taxes, Interest, etc.
Unearned Discount
Liability a/c Letters of Credit, Acceptances, etc.
Other Liabilities
Individual Deposits
$121,154,568.
Savings Deposits
32,463,988,
Bank Deposits
107,130,074,
City of St. Louis and Other Public Funds 4,790,521.
Total Deposits

$ 10,20 0,000.00

8,755,052.76
240,000.00
1,20 0,000.00

272,986.16
218,657.25
665,051.08
6,943.15

265,539,152.81
$287,097,843.21

Broadway * Locust •>Olive
M e m b er F e d e r a l D e p o s it In su ra n c e C o rp o ra tio n

N orthw estern Banker

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Federal Reserve Bank of St. Louis

January 1940

74

—• I O W A
th a n a m illion distressed hom e ow ners
du rin g th e depression—th e average
then tw o y ears d elinquent in both
principal and in te re st and betw een
tw o and th re e y ears on tax es—and
w hich today has enabled the v ast m a­
jo rity to reh ab ilitate them selves to a
position w here th ey are v irtu a lly cer­
tain to re ta in th e ir homes.
P o in tin g out th a t th e HOLC daily
has a w ider range of experience in
th e servicing of hom e m ortgages th a n
m ost lenders have in th e course of a
year, th e R e v ie w declares th a t all

r

W h e n Y o u S te p

NEWS

•

lenders w ell m ight study th e policies
of th is G overnm ent agency and apply
them as far as possible to th e ir own
problem s. The HOLC, it declares, has
learn ed “how to keep peoeple in th e ir
hom es.”
“Floods and h u rricanes, tornadoes
and fires, have all played a p a rt in the
HOLC’s operations,” the R eview points
out.
“In Louisville, a m o rtg ag o r’s
house is w ashed tw o blocks dow n th e
stre e t by flood w aters; is it possible to
resto re it to the original site, and, if
so, w h at m eans shall be used? A di­
vorce su it involving a borrow er is
in itiated in Boston; pending settlem en t
of th e court action, the L oan Service
D ivision m ust ad ju st th e term s of pay­
m en t tem porarily. A b o rrow er dies

in Savannah; w hile the estate is u n d er
adjudication, a satisfactory agreem ent
w ith th e h eirs m u st be negotiated.
Such cases are p a rt of the everyday
work. . . .
“Today nearly every lender has to
face th e sam e problem w hich has con­
fro n ted the HOLC because of th e g en­
eral adoption of th e long-term am or­
tized loan. D uring th e first y ears of
such a loan, he m u st assist the b o r­
row er in every w ay to build a steadily
increasing equity in the p ro p erty or
be prep ared to take th e highly prob­
able loss w hen th e b o rrow er defaults
on his obligation and tu rn s th e house
back to the lending in stitution. M any
a high percentage loan, although
soundly made, will show a n et loss

o ff t h e T r a i n in

N EW YO R K

lilODERfllZt Your Re c or d St or a ge
w it h

S A F E "Y S T A C K
Y o u w ill have q u ick access to th o se im p o rta n t
sem i-active and inactive re c o rd s w h e n you sto re
th em in S afeT stack Steel S to ra g e Files. " T a ilo rm a d e ” to fit y o u r B ank r e c o r d s —actually
co st less th a n o ld -fa sh io n e d c a rd b o a rd
sto ra g e boxes an d shelvin g .
O L D W A Y — C o stly, s p a c e-w a stin g ,
d i r t y , in fla m m a b le , u n s y s te m a tic , s h o rt­
liv e d , h a za rd o u s, in c o n v e n ie n t.
THE

The Hotel McAlpin is only
a block away from the
Pennsylvania R. R. Station
and only s e v e n minutes
from the Grand Central
Terminal. B & O Buses
stop at our door.
Decidedly, T h e McAlpin
Hotel is a favorite with the
banking- fraternity.
L A R G E R O O M S , NEWLY
FURNISHED & DECORATED
S I N G L E R O O M f r o m $3
D O U B L E R O O M f r o m $ 4 .5 «

Y e a rs o f s p e c ia liz e d tr a in in g in th e
s to ra g e o f r e c o r d s h a v e g iv e n us
e x p e rt k n o w le d g e in s o lv in g s to r ­
a g e p ro b le m s . T h is in f o r m a tio n
h a s b e e n c o n d e n s e d in th e little
b o o k illu s tr a te d h e r e , " A N E W W A Y
T O ST O R E Y O U R O L D B A N K R ECO RD S.
Y o u rs w ith o u t o b lig a tio n —ju s t m a il coupon.
THE STEEL S T O R A G E FILE C O .
2 2 1 6 W est 6 3rd St., C le v e la n d , O h io

P le a s e m a il u s y o u r b o o k le t to d a y .
N am e
B ank

T H E S T E E L S T O R A G E F I L E W A Y —- In ex p e n siv e , space­
sa vin g , c lea n , fir e -r e s is ta n t, s y ste m a tic , p e r m a n e n t, sa fe ,
accessible f o r in s ta n t re feren ce.

A d d re s s

SPECIAL COMBINATION OFFER
GENUINE ENGRAVED STATIONERY
1000 L E T T E R H E A D S
500 E N V E L O P E S
200 B U S I N E S S

75

CARDS
W rite fo r sa m p le s

M C A L P IN
BROADWAY AT 34th ST., NEW YORK
Under KNOTT Mgt. John J. Woelfle, Mgr. ^

N orthw estern B anker

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Federal Reserve Bank of St. Louis

January 1940

MOON [IfHTTinG(M lit I

FOUNDED 1907 BY DANIEL E.MOON

1210 Grand Ave.
Des Moines, Iowa

IV II

( Co

FI NE BUSI NESS NATI ON Í R Y

75
to th e m ortgagee if th e m ortg ag o r de­
fau lts on his obligation w ith in a v ery
few m o n th s from th e g ra n tin g of the
loan, even before th e factors of obso­
lescence and d epreciation begin to tak e
th e ir toll. The only profitable proced­
u re for a m ortgage-lending in stitu tio n
today is to help keep th e m ajo rity of
its m ortg ag o rs in th e ir hom es on an
econom ically sound basis.
“T he fu n d am en tal belief of the
HOLC has been th at, w hen circum ­
stances ju stify , p ay m en ts o th er th a n
those called for in th e co n tract should
be tem p o rarily accepted from th e
m ortgagor, pending an an ticip ated so­
lu tio n of his difficulties. . . .
“The basic policy is th a t case an aly ­
sis, not b u lk tre a tm e n t, is essential
fo r successful operation.
“Follow ing out th is principle, an
exam in atio n of th e m o rtg ag o r’s loan
h isto ry is m ade and a personally dic­
ta te d le tte r goes out from th e R egional
office w h en a second p ay m en t is
m issed, and no w ord has been received
from th e borrow er. In m any cases,
th is rem in d er b rin g s a p ro m p t p ay ­
m ent, or else a p a rtia l p ay m en t w ith
a n ex p lan atio n of th e situation, and a
proposal to m ake up th e a rre a rs w ith in
a definite tim e. In o th er instances, th e
rep ly from th e b o rro w er reveals con­
ditio n s th a t ap p a re n tly m ake it im ­
possible for him to m ake any p aym ents
a t all, or it m ay be th a t no an sw er is
received.
“D epending on th e individual case,
b u t u su ally no later th a n 60 days a fte r
th e first p ay m en t has been m issed, a
field re p re se n ta tiv e of th e HOLC
m akes a personal call upon th e b o r­
row er. H is object is n o t sim ply to a r ­
ran g e for th e p ay m en t of th e am ount
due. H e is tra in e d to ascertain th e
facts about th e b o rro w er’s position so
th a t a p ro p er analysis of th e account
can be m ade and th e real problem of
th e b o rro w er determ ined. H is aim is
to su ggest a possible cure for th e m o rt­
g a g o r’s difficulties. . . .
“The advice of a h ighly tra in e d spe­
cialist in th e loan service field has
proved invaluable to m an y borro w ers
w ho, unaided, saw no w ay out of ap ­
p a re n tly hopeless situ atio n s w hich
co nfronted them . Often hom e ow ners
a re not fam iliar w ith existing m eans
of solving th e ir problem s. T hey do
n o t know th a t in one state a w idow
is en titled to a redu ctio n in th e assess­
m en ts upon h e r home; th a t in an o th e r
a m ortg ag o r is eligible to apply for
hom estead ta x exem ption. In o th er
cases, HOLC borro w ers have been
qualified to receive assistance in th e
form of sh e lte r allow ance, or pensions
from F ed eral and local w elfare agen­
cies, b u t have been ig n o ran t of the
existence of th ese aids.
“The HOLC sends an experienced

R E S O U R C E S
L o a n s and D is c o u n ts ........................................................................
O th er B o n d s a n d S to c k s .................................................................
O v e rd ra fts ...........................................................................................
F u r n itu r e and F ix t u r e s ....................................................................
C ustom er L ia b ility on L e tte r o f C r e d it...................................
C ustom er L ia b ility on A c c e p ta n c e s ..........................................
G overn m en t O b lig a tio n s, D irect and F u lly G uaranteed
(p a r v a lu e) ....................................................................................
M u n icip a l B on d s (p a r v a lu e ) .....................................................
C ash and D ue fr o m B a n k s ............................................................

§3,521,971.95
109,300-00
N one
15,181.15
4,050.00
9,160.20
> 253,940.00
349,532.44
1,499,069.71

L I A B I L I T I E S
C apital— Common
P r eferr ed

$150,000.00
N one

$

150,000.00
200,000.00

S urplu s .....................................................
U n d iv id ed P r o fits ..............................
R eserv es ...................................................
R eserv es fo r D iv id en d s ...................
U n e a rn ed D isco u n t ............................
B a n k L ia b ility on L etter o f C redit
B a n k L ia b ility on A cc e p ta n c e s. . .
D ep o sits ...................................................

106,133.29
5,892.87
444.00
49,091.45
4.050.00
9,160.20
5,237,433.64

$5,762,205.45
D IR E C T O R S
W a lter P . Davis
George M ahnke
Lucius W. F itc h
H erb ert A. M etcalfe
Xj S H ill
Frederick M. M orrison
H arold J. Howe
Winfield W. S cott
A rth u r S. K irk
J. E . Tone
A llen W hitfield
M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

O F F IC E R S
H erb ert A. M etcalfe. C hairm an of th e Board
F rederick M. M orrison, P resid en t
W infield W. Scott, Vice P resid en t
J . R . Astley, C ashier
Edw ard P . K autzky, A ssistan t Cashier

SECURITY NATIONAL BANK
SIOUX CITY, IOWA
S ta te m e n t of C o n d itio n D e c e m b e r 30, 1939

RESOURCES
Cash on Hand and on Deposit with Banks.............$3,944,996.35
United States Government Bonds............................
623,137.27
Bonds and Securities...................................................
41,041.80
Rediscountable Loans ............................................... 1,786,475.98
Commercial Paper .....................................................
80,000.00
Liquid Resources ......................................
Other Acceptable Local Loans................................
First Real Estate Mortgages on Income Prop­
erties in Sioux City........................ ....................
Security Bank Building, Vault and F ix tu r es....
Federal Reserve Bank Stock....................................
Overdrafts ...................................................................

$6,475,651.40
679,664.30
320,245.95
162,500.00
14,100.00
1,495.13
$7,653,656.78

L IA B IL IT IE S
Capital Stock .............................................................. $ 250,000.00
Surplus ........................................................................ 225,000.00
Undivided Profits and Reserves..............................
18,312.44
Deposits

$ 493,312.44
7,160,344.34
$7,653,656.78

O F F IC E R S
C h a rle s R . G o ss e tt, P r e s id e n t
D elk o B lo e m , V ic e P r e s id e n t
A lb e r t C. E c k e r t, V ic e P r e s id e n t
R . E a r l B ro w n , C a s h ie r
D a n ie l B . S e v e rs o n , F r a n k H . A b e l a n d A lv in G. N e ls o n , A s s is ta n t C a s h ie rs
*U . S. G o v e r n m e n t b o n d s a n d o th e r b o n d s a r e a ll s h o r t m a tu r it ie s a n d c a r r i e d a t less
t h a n m a r k e t.
W e H a v e C om plete B a n k in g F a c ilitie s I n c lu d in g M odern S a fe D ep o sit V a u lt, T ru st and
P e rso n a l L oan D ep a rtm en ts.
M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n

N orthw estern Banker

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Federal Reserve Bank of St. Louis

2,102,542.15
$5,762,205.45

January 1940

76
rep re se n ta tiv e to th e m ortg ag o rs w ho
have becom e d elin q u en t in th e ir p ay ­
m en ts to acq u ain t th e m w ith ju s t such
m eans of p reserv in g th e ir hom es and
resto rin g th e ir accounts to a c u rre n t
status. The resourcefu ln ess of these
advisors has often been severely taxed
to find w ays and m eans of solving the
b o rro w e r’s problem s.
T hey have
w orked in close cooperation w ith th e
em ploym ent services, m aking su re
th a t all delin q u en t bo rro w ers w ere
correctly registered; th is has often
m ade it possible for those w ith o u t
jobs to find em ploym ent. T hey have
guided to th e p ro p er agencies those
en titled to sh elter allow ance; th ey
have helped those bo rro w ers w hose
m ortgages rep resen ted a b u rd en be­
yond th e ir incom e to re n t or sell th e ir
properties.
“It tak es p a tie n t and u n tirin g w ork
on th e p a rt of th e field rep resen tativ es,
b u t th is th o ro u g h n ess has paid divi­
dends. T here are m an y cases on th e
HOLC books w here borro w ers are still
being given a chance to reh ab ilitate
them selves, despite th e fact th a t th ey
are considerably in a rre a rs at present.
By keeping in close personal touch
w ith those w ho have fallen behind,
encouraging th em to m ain tain such
paym en ts as are w ith in th e ir m eans,
th e Loan Service D ivision has been

IN S U R E D

able to b ring thousands of m ortgagors
into c u rre n t standing after long pe­
riods of serious delinquency. . . .
“J u s t how successful th e C orpora­
tion has been in w orking out its tech ­
nique for protecting th e in te re st of
these borrow ers is ap p aren t from the
fact th a t out of its original 1,018,000
loans—all to borrow ers once faced
w ith foreclosure—m ore th a n 53,000
have been paid in full and crossed off
th e books, 672,500 o thers are in satis­
factory condition, and 126,000 m ore
are being k ep t open by ad ju sted pay­
m en ts w hich give hope th a t th e m a­
jo rity w ill be liquidated w ith o u t loss.
A pproxim ately 84 p er cent of p resen t
HOLC accounts are in en tirely satis­
factory standing; th e re st are being
carefully serviced to explore every
resource by w hich th ey can be b ro u g h t
to such a status. To date borrow ers
have paid back m ore th a n $614,000,000,
or m ore th a n 19 p er cent of th e ir en ­
tire principal indebtedness.”

souri, declared th e dividend applicable
to th e six m o n th s’ period ending De­
cem ber 31st and said it w ould b rin g
th e total dividends paid for th e y ear to
$120,324.
The b an k ’s m em bers association re ­
ceived $27,888 of th e to tal 1939 divi­
dend, th e balance of $92,436 going to
th e U nited States T reasury. T otal
dividends paid stockholders since th e
b an k ’s organization seven y ears ago
are $885,670.
P re se n t officers of th e b ank w ere re ­
elected for 1940 by th e board. T he
officers are R. J. R ichardson, p resid en t
and secretary; W. H. Lehm an, vice
presid en t and tre a su re r; J. M. M artin,
assistan t secretary, and A. E. M ueller,
a ssistan t treasu rer. E. S. Tesdell is
counsel for th e bank.
Total assets of th e in stitu tio n are
$19,998,000', and ou tstan d in g loans to
m em bers total $16,661,500.

Declare Dividend

A dair D. Ross has become connected
w ith th e Polk C ounty F ed eral Savings
and L oan A ssociation, Des Moines, it
w as announced recen tly by L. D. Ross,
secretary-treasurer.
A dair Ross, w ho has been connected
w ith th e B ankers T ru st Company, Des
Moines, for th e p ast ten years, w ill
assist in th e general business of th e
association, w hich m ain tain s offices a t
511 S eventh S treet in Des Moines.

The board of directors of th e F ed ­
eral H om e Loan B ank of Des Moines
have authorized p aym ent of th e in sti­
tu tio n ’s te n th consecutive dividend to
stockholders.
The bank, serving N orth and South
Dakota, M innesota, Iow a and Mis­

P R IN C IP A L

... PLUS —

S a fe ty for E A R N I N G S
Bankers will ap p reciate the sound b asis on w hich the
Polk C ounty F ederal S avings a n d Loan A ssociation is
building its fast-growing financial structure. Between
Jan u ary 1 an d D ecem ber 16, 1939, this A ssociation m ade
lo an s totaling $510,745.00. Of this am ount, 86 p er cent
w as lo an ed on well-built new hom es. These better class
properties are your a ssu ra n ce of continued liberal e a rn ­
ings for investm ent an d trust accounts.

ASSETS $1,345,000.00

P O L K COUNTY

N orthw estern B anker

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Federal Reserve Bank of St. Louis

January 19bO

o f Dm M oines

Elected Directors
Two Iow a m en have been elected di­
rectors of th e F ed eral H om e Loan
B ank of Des Moines, according to an
announcem ent from h ead q u arters of
th e F ed eral Hom e Loan B ank system
at W ashington, D. C.
The m en are J. W. Irons, of th e Mu­
tu al F ederal Savings and Loan Asso­
ciation, M ason City; and Jo h n R. Loom ­
is, of th e Red Oak B uilding and Sav­
ings A ssociation, Red Oak. T hey w ill
serve tw o-year term s.

Partnership
C harles P. M. Allen, C. P. A. in Des
Moines for several years past, an d
A rnold F. Schaetzle have form ed a
p a rtn e rsh ip to specialize in tax m atters
and act as ta x consultants in Des
Moines and vicinity. Mr. Schaetzle
form erly w as in p artn ersh ip w ith th e
late C layton B. Stiver.

Elected director

FEDERAL SAVINGS A LOAN ASSN
511 Seventh St.

In New Connection

Phone 3-4115

Mr. H arvey D. Gibson, ch airm an of
th e board, p resid en t and director of th e
M an u facturers’ T ru st Company, N ew
York, has been elected director of The
H om e In su ran ce Company, 59 M aiden
Lane, New Y ork City, to succeed th e
late C harles L. T yner.

Be Sure You Know
Your Insurance ^Coverage
H E build in g an d loan association
has m ade a v ery definite co n trib u ­
tio n to th e w orld of finance. It
has m ade it possible for th o u san d s to
adopt a sy stem atic m ethod of savings,
an d also m ade it possible for countless
o th er th o u san d s to becom e hom e-ow n­
ers, an d in th a t w ay it has u n doubtedly
im proved th e com m unity in w hich it is
dom iciled, because w e all recognize th e
fact th a t th e individual w ith m oney a t
his com m and, or th e hom e-ow ner, is a
b e tte r an d m ore co n stru ctiv e citizen
th a n th a t m an w ho is living from handto-m outh, or is a te n a n t all his life.
H ow ever, th a t resp o n sib ility in itself
th ro w s a v ery definite b u rd en upon
y o u r shoulders. The depositors of y o u r
building and loan association have p u t
th e ir m oney in y o u r care w ith th e
faith th a t it w ill be available to th em
w hen needed, and you m u st conduct
y o u r b u siness in such a w ay th a t th e ir
fa ith w ill n o t be broken. You can, of
course, select good risk s u pon w hich to
m ake y o u r loans th ro u g h th e m edium
of y o u r ap p raisal boards; you can be
assu red th a t th e p ro p e rty is w o rth con­
siderably m ore th a n th e loan, th u s
m aking good collateral.
T h ro u g h y o u r p ersonal acquaintance
and w ith th e aid of re ta il cred it re ­
ports, or financial statem en ts if neces­
sary, you can select b o rro w ers of in ­
teg rity , bo rro w ers w ho a p p a re n tly are
w ell able to m eet th e ir obligations.
This, offhand, should look like a
good loan, b u t it is n o t enough. Con­
ditions over w hich th a t b o rro w er m ay
have no control m ay stop his incom e,
and a t th e sam e tim e th e elem ents m ay
d estro y th a t p ro p e rty upon w hich you
had depended for collateral. T h ere­
fore, in su ran ce is n ecessary to m ake
th e loan ironclad.
In ta k in g u p th e m a tte r of insurance,
it seem s to m e th a t th e first th in g to
consider is th e com pany itself. W e
should have good com panies behind
th e co n tracts th a t we accept; com pa­
nies th a t are w ell able to m eet th e
obligations and provisions of th e ir con­
tracts.
In discussing th e in su ran ce com ­
pany, or stu d y in g th e problem s from
th a t angle, w e m u st first give some
th o u g h t to th e in v estm en ts th a t th e
com pany h as m ade. All com panies is­
sue financial sta te m e n ts th a t include

T


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

By Homer Templeton
S pe cia l Agent
Crum & Forste r, Des Moines

th e ir portfolio — th e ir in v estm en t
portfolio in detail, and a careful study
of th is list of in v estm en ts w ill assure
us w h e th e r or n ot th ey are liquid, and
w h e th e r or n ot th ey are of sufficient
q u ality to assu re us th a t th e ir co ntract
can be m et in th e ev en t of an em er­
gency.
A fter deciding upon th is m atter, we
th e n come to th e statem en t itself. U n­
fo rtu n ately , th e financial statem en t of
an in su ran ce com pany is ra th e r diffi­
cu lt for th e average laym an to u n d e r­
stan d and analyze, or for m any in su r­
ance m en, so far as th a t is concerned.
H ow ever, th e re are a n u m ber of for­
m ulas available th a t can be used to
help us in th is way. To m y m ind, th e
m ost successful form ula, and p erhaps
th e easiest to apply, is a com parison of
th e u n earn ed prem ium reserv e and the
su rp lu s to policyholders. T he u n ­
earned p rem ium reserv e is a fund set
aside, and should be sufficient to cancel
all of th e ou tstan d in g liabilities of th e
com pany and pay back th e u n earn ed
prem ium s to th e respective policyhold­
ers; or, in lieu of this, to p u rchase re ­
in su rance w ith some o th er com pany.
N eith er one of these steps w ould likely
be tak en unless th e carry in g com pany
had m et w ith financial reverses, b u t in
e ith er case th e policyholder shouldn’t
suffer financial loss.
A re p o rt of th e u n earn ed prem ium
reserv e is filed w ith th e respective
states in w hich th e com panies do busi­
ness, and is on a percentage basis of
th e prem ium s w ritte n by th e com pany.
Since all com panies file on th e sam e
basis, or approxim ately so, it should
m easure and be a fairly accurate y a rd ­
stick of th e loss possibilities th a t th a t
com pany has assum ed.
To offset this, as I said, you have the
su rp lu s to policyholders. In th e case
of stock com panies, th is is m ade up of
th e capital stock and th e su rp lu s only.
T he larg er th e su rp lu s th e stro n g er
th e com pany. I have h eard the a rg u ­
m e n t advanced th a t som e com panies
h ad created too m uch surplus; th a t

th ey w ere stro n g er th a n necessary. To
m y m ind, th is arg u m en t is w ith o u t
foundation. W e only need go back a
few years to th e tim e w hen a bank
failure w as u n h e a rd of, and th en in th e
m a tte r of b u t a few m onths banks
w ere failing literally by th e hundreds,
due to unforeseen business conditions.
In su ran ce com panies are financial in ­
stitutions; th ey are subject to alm ost
all of th e conditions th a t a b an k is
subject to, and in addition to th at, th ey
are subject to conflagration hazards
w hich are over and above th e norm al
ru n of losses. If h isto ry rep eats itself,
and it alw ays has, w e w ill be again
confronted w ith a San Francisco dis­
aster, a Chicago fire or a St. Louis
tornado, a t w hich tim e th e insurance
com panies w ill find it necessary to dip
deeply into th e ir su rp lu s to m eet th e ir
losses. So I say, it is im possible for any
financial in stitu tio n to become too
strong.
A fter deciding on th e com pany itself,
and m aking su re th a t it m eets w ith
y o u r requirem ents, th e n ex t th in g to
take up is th e contract. In su ran ce com­
p any co ntracts or policies, like au to ­
mobiles, are stream lined today; th ey
have been im proved in m any respects.
T he p resen t dw elling house policy
covers n ot only th e building, b u t is
extended to cover 5% of th e am ount
of th e dw elling on any outbuildings
on th e property. In o ther w ords, a
$4,000 policy on a dw elling w ill also
cover $200 on a garage or any o ther
outbuilding, providing th ey are not
specifically insured.
I t is also extended to cover w alks,
trellises, pergolas, arbors and fences,
and o th er a rtistic arra n g em en ts on the
lot.
The electrical exem ption clause has
been recently changed in the dw elling
house policy only—n ot in th e m ercan­
tile policies. F o rm erly th e electrical
exem ption clause excluded dam age to
electrical equipm ent from electricity,
w h atev er th e cause, eith er artificial or
n atu ral. The present-day dw elling
house policy excludes dam ages to elec­
trical equipm ent from electricity of an
artificial n atu re, b u t not from lig h t­
ning.
In th e dw elling house policy th e
item covering household goods is ex­
tended to cover 10% of th e am o u n t of

78

Diversified Security
for Trust Funds
T r u s t officers, c o n s e rv a to rs an d
o th e rs re c o g n iz e th e s o u n d n e ss of
se le c te d first m o rtg a g e s o n r e s i­
d e n tia l p r o p e rty , th e s e c u rity fo r
F irs t F e d e ra l S av in g s sh a re ac­
c o u n ts . E a rn in g s a re c u r r e n tly 3%
p e r a n n u m . S afety in s u r e d u p to
$5,000 b y th e F . S. L . I. C. W r ite
f o r c o p y o f p r o s p e c tu s .

FIRST FEDERAL
SAVINGS & LOAN
A ssn , o f C h ic a g o
130 S. L a S a lle

C e n tr a l 8100

Where You
See This
Emblem

Your
Savings
Are SAFE

Whether
From Individuals
Small Trusts
Large Corporations
each account receives equal
consideration.
3 % C u rre n t D ividend
Assets $ 1 ,7 0 0 ,0 0 0

GATE

C IT Y

Building & Loan Association
FARGO

69 Broadway
NO. DAKOTA

th e in surance on personal p ro p erty in
an y of th e outbuildings on th e p rem ­
ises, and, of course th e electrical ex­
em ption clause applies th e sam e as it
does on the dwelling.
A fter m aking sure th a t we have the
stream lined policy in our possession,
th e n ex t thing, to m y m ind, is to be
su re th a t our co ntract is p roperly w rit­
ten. It should show th e exact n atu re
of th e title and an y th in g p ertain in g to
th e title; it should give an accurate and
com plete legal description of th e prop­
e rty covered; it should show th e proper
construction of th e building, and,
above all, if th ere is m ore th a n one
co n tract on the property, th ey should
be c o n cu rren t in order to avoid litiga­
tion or delay in the event of a loss.
The n ex t step we take up is th e cov­
erage itself. Today we are selling quite
g enerally the extended coverage in ­
dorsem ent. T his indorsem ent w hen a t­
tached to a fire in su ran ce policy ex­
ten d s th e policy to include the follow­
ing hazards: fire, lightning, tornado,
high-w inds and hail and in addition
th e re to explosion, rio t and civil com­
m otion, vehicle dam age, dam age from
aircraft, and dam age from faulty
o peration of statio n ary h eatin g de­
vices. In these m odern days w ith all
m an n er of vehicles on th e road; w ith
a irc ra ft flying over our homes; w ith
labor troubles and difficulties, and w ith
all m a n n er of autom atic devices for
h eatin g in our homes; it seem s to me
th a t th is additional coverage is very
im p o rtant, and it costs only 20-cents
a th o u san d m ore th an the old-fash­
ioned com bined policy.
W e have for th e protection of th e
m ortgagee th ree clauses in general use
in Iowa. The first clause is know n as
th e loss-payable clause. T his clause
provides th a t loss, if any, should be
payable to th e assured and the m o rt­
gagee as th e ir respective in terests m ay
appear, subject, nevertheless, to the
term s and conditions of the policy. In
o th er w ords, th is clause does not
change any of th e p rin ted provisions
of th e policy itself, and if this clause
is to be used allow me to suggest th a t
it should be w ritte n to cover, first, the

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

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

N orthw estern B anker

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

St. Paul, Minn.

January 194-0

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

O ld est a n d L a r g e s t
in D es M o in es
411 6tli A v e.
E L M E R E . M IL L E R
P r e s , and S ec.

D ia l 4-7119
H U B E R T E . JA M E S
A ss t. S ec.

M e m b er F e d e r a l H o m e L o a n B a n k S y ste m

INSURED SAFETY
F o r Y our S a v in g s and In v e stm e n t F u n d s

3 % Current Dividend Rate 3 %
It W ill P a y You to Get O ur L ite ra tu re
B efo r e I n v e stin g
W R IT E FO R B O O K L E T “ D ”

M in n ea p o lis, M in n eso ta
" T IM E

IS

K IN D

TO T H E

T H R IF T Y ’

Since 1878

L IB E R A L EARNINGS
with
SAFETY
Statement on request

W a t e r lo o
B u i l d i n g and L o a n
Association
East Fifth at Lafayette

W ATERLO O

IO W A

U. S. Government Supervision

LEGAL INVESTMENT
For
INSURANCE COMPANIES

(Current Dividend Rate)

Accounts Insured Up to $5,000

NORTHWESTERN FEDERAL
Savings

&

Loan Association

823 Marquette Ave.
MINNEAPOLIS. MINN.

79
m ortgagee and, second, th e assured, as
th e ir respective in te re sts m ay appear.
T he o th er tw o form s or clauses are
kn o w n as th e long-form m ortgage
clauses. T hey m ake c ertain changes in
th e provisions of th e contract. In oth er
w ords, th e y cover a situ atio n w h ere
should th e policy be invalidated, by
any act or neglect of th e m ortgagor or
ow ner of th e w ith in described p ro p ­
erty, or by an y foreclosure or oth er
proceedings, or by change of title, or if
th e occupancy is one m ore hazardous
th a n th e one described in th e policy,
any of w hich w ould o rd in arily inv ali­
date th e policy, w ith th e use of th is
clause th e m ortgagee is still protected.
The com pany m ig h t not p ay th e as­
sured, b u t th e y w ould be req u ired to
pay th e in te re sts of th e m ortgagee.
M any of th e com panies have p ro ­
vided a b lan k et form of policy for
build in g an d loan organizations. T his
c o n tract is w ritte n in th e nam e of th e
building and loan association, w ith cer­
tificates to be issued for each p ro p erty
covered. The co n tract is m ore or less
tailor-m ade, according to th e condi­
tions and re q u ire m e n ts of th e building
an d loan itself so we can n o t tell v ery
m uch about it, only m en tio n it in a
g en eral way. I t n a tu ra lly provides all
of th e coverage of th e specific policy
w ith th e long-form m ortgage clause,
an d in ad dition to th a t it usu ally p ro ­
vides an e rro rs and om issions coverage
for th e building and loan association.
In m ost cases it w ill give autom atic
coverage for a ce rta in n u m b er of days
afte r th e p ro p e rty has been acquired.
As fa r as th e dw elling house policies
are concerned, we are not allow ed to
use coinsurance in th e state of Iowa,
according to law. I u n d erstan d , how ­
ever, th a t m an y of y o u r associations do
m ake loans on p ro p erties o th er th a n
dw ellings and on a p a rtm e n t buildings.
In those cases you m ay find co in su r­
ance in th e policies th a t you accept,
and I th in k th a t is w o rth y of a lot of
study. In th is state, th e coinsurance
clause m u st be signed by th e assured,
w ho agrees to c a rry a certain p e rc e n t­
age of in su ran ce to value for w hich he
gets a red u ctio n in rate. U sually th e
80% or 90% clause is used, probably
th e 80% m ore often th a n th e 90%.
In ta k in g up th is feature, suppose
we have a $10,000 p ro p e rty —th a t is,
its sound v alue is $10,000, and, inci­
dentally, th a t is a rriv e d a t by tak in g
th e p re se n t cost of th e b uilding and
deducting from th a t th e depreciation
for th e n u m b er of y ears it has stood;
and th e 80% clause is used, th e assu red
agrees to c a rry 80% to value, w hich in
th is case w ould be $8,000. If th e as­
su red carries $8,000, or 80% of th e
value, settlem en t is m ade in exactly
th e sam e m a n n e r as if th e coinsurance
clause w as n o t attached. H ow ever, if

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

th e assured does not carry 80% for
exam ple, suppose he has $7,000 in su r­
ance; in th e event of a loss th e com­
p an y w ill pay seven-eighths, or th a t
pro portion betw een w h at he had
agreed to c arry and th a t w hich he ac­
tu ally did carry on any loss th a t he

m ight suffer up to th e face of the
policy.
I w ould suggest, therefore, in the
event you have policies of th a t kind on
yo u r books, or in your files, th a t you
carefully check th e sound value of
th e p ro p erty and m ake sure th a t th ere

Federal Home Loan Bank of Des Moines
Des Moines, Iowa
S tatem ent o f C ondition N ovem b er 3 0 , 1 9 3 9
R ESO U R C ES
A d v a n ce s to M em bers ...............................................................................................................................$16,813,299.29
U . S. G overn m en t O b lig a tio n s a n d S ecu rities G u aran teed b y U . S ................................... 1,367,000.00
A ccru ed I n te r e s t R e c e iv a b le ..................................................................................................................
62,651.97
D eferred C h a r g e s .........................................................................................................................................
13,801.12
C ash ..................................................................................................................................................................
705,669.47
$18,962,421.85
L IA B IL IT IE S
G overn m en t S to ck S u b s c r ip tio n ...............................................
M em b ers’ S tock S u b s c r i p t i o n ...................................................
^ D ebentu res O u tsta n d in g ...........................................................
P r e m iu m s on, D eb en tu r es ............................................................
D e p o sits .................................................................................................
A ccru ed In te r e st P a y a b le ...........................................................
S u rp lu s :
R eserv es ....................................................................................
U n d iv id ed P ro fits ........................................................................

..........................$ 7,394,900.00
.......................... 2,361,050.00
.......................... 7,500,000.00
..........................
3,750.00
..........................
986,650.00
..........................
50,410.38
$426,608.33
239,053.14

665,661.47
$18,962,421.85

“^ P a r tic ip a tio n in $48,500,000 c o n s o lid a te d F e d e r a l H o m e L o a n B a n k d e b e n tu r e s o u ts ta n d in g ,
w h ic h a r e th e j o i n t a n d s e v e r a l o b lig a tio n s o f t h e tw e lv e F e d e r a l H o m e L o a n B a n k s .

SAFETY
IN
IN VESTM EN T
Accounts insured up to
$5000.00
Statem ent on request

r ____ HOM E
,,j]
FEDERAL SAVINGS
AND LOAN ASSOCIATION
OF DES MOINES
— our Federally Insured up to
$5,000 savings accounts are
the solution to your invest­
ment and trust problems.
Current dividend 4 per cent.
Statem ent on request.

FIRST FEDERAL

904 Grand Avenue
Des Moines, Iowa

S A V IN G S AND LOAN A S S O C IA T IO N
819 Fran cis St.
ST. JO S E P H

-

-

M ISSOURI

U N BR O K EN
D IV ID EN D RECO RD FO R

ASSETS

OVER

$ 1 ,1 2 4 ,0 0 0 .0 0

2 0 YEARS
□

HOME

Building and Loan Association
FORT DODGE, IOWA
M e m b er F e d e r a l H o m e L o a n B a n k S y ste m

t ,,,...D N I T % D v ^

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

LOAN

ASSOCIATION

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

Phone 4-5324

N orthw estern B anker

January 1940

80

M ERCHANTS
MU T U A L

BO N D IN G
COMPANY
Incorporated 1933

H om e Office
V A L L E Y B A N K B U IL D IN G

Des Moines, Iowa

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

W r ite to

E. H. WARNER
S ecr eta ry an d M an ager

B anking Su pplies of H ighest Q uality —
Courteous Service— Sensible Prices.

is sufficient insu ran ce to cover.
T here w as one question p resented
not long ago th a t m ig h t be w o rth y of
b rief com m ent a t th is tim e. In th is
case th e com pany had m ade a loan of
$2,500 on a p ro p erty estim ated a t
$10,000 in value. T he assu red carried
$7,500 of in su ran ce in th ree separate
contracts, and he p u t up one $2,500
policy w ith th e loan, in sisting on re ­
tain in g th e o th er tw o him self. The
m ortgagee w as in q u irin g about th e
situation. I don’t like it for several
reasons: In th e first place, as I ex­
plained a w hile ago, all policies should
be concurrent, and if this m ortgagee
doesn’t have all of th e contracts in his
possession he has no w ay of know ing
w h e th e r th e y are concurrent, or not.
In addition to th at, th e con tract w hich
he holds in his files provides th a t th e
policy w ould pro-rate or co n tribute
w ith all o th er valid and collectible in ­
surance. In event of a loss in th is p a r­
tic u la r case his co ntract w ould pay
only one-third of any loss. I w ould sug­
gest, therefore, th a t you have all of
th e in su ran ce covering th a t p ro p erty
in y o u r possession.

♦ I ' i i l U [(•

kSpecialized
HARVESTING MACHINERY
18 8 6

Threshers Combines
Corn Pickers
D e p e n d a b le p rod u cts fo r over 5 0
years to H arvest and T h resh all
grain s and seeds.
A g ood
ow n ers.

S a fe and d esirab le fa r m p ap er is
p r o fita b le fo r lo ca l fin a n c in g .

□

Wood Bros. Thresher Co.
D e s M oin es, Iow a

K arl R. T uttle, w ell know n Spencer
business m an, has accepted th e posi­
tion of a ssistan t cashier of th e F a rm e rs
T ru st and Savings B ank a t Spencer.
T u ttle has been associated w ith his
b ro th er, R. M. T uttle, in th e popcorn
business here m any years. H e has
also been a m em ber of th e city council
several years.

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

Hawkeye Mutual Hail

Northern Trust

100 E A S T G R A N D

D E S M O IN E S , IO W A

Jlc H a & it G a d t

Insurance Association
Carver B ld g.

F ort D o d g e, Iow a

N orthw estern B anker

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

January 19k0

fa rm

Assistant Cashier

The statem en t of condition of M anu­
fa c tu re rs T ru st Company, N ew York,
as of D ecem ber 30, 1939, show s depos­
its of $762,763,244 and resources of
$861,154,221. T his com pares w ith de­
posits of $737,809,059 and resources of
$837,238,027 show n on Septem ber 30th
and deposits of $655,486,078 and re ­
sources of $769,305,594 show n on De­
cem ber 31, 1938.
Cash and due from banks is listed
a t $267,372,519, as ag ain st $233,593,429
on S eptem ber 30th and $197,452,981 on
D ecem ber 31, 1938. U. S. G overnm ent
secu rities stan d at $282,493,190; th ree
m o n th s ago it w as $273,198,269 and a
y e a r ago $229,471,899. L oans and bills
p u rch ased is $189,415,410 w hich com ­
p ares w ith $203,423,657 at. th e end of
th e p revious q u a rte r and $206,827,429
on D ecem ber 31, 1938.

C om plete BANK and O F F IC E Equipm ent

fo r

A p r o fita b le b u sin ess fo r dealers.

Manufacturers Trust

L. W. HOLLEY & SONS

in v estm en t

D eposits of T he N o rth ern T ru st
Com pany, Chicago, on D ecem ber 30,
1939, w ere $339,977,000 for a y e a r’s gain
of $30,000,000. L oans increased $6,-

I o w a ’s L a r g e s t B u s in e s s T r a i n i n g S c h o o l

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

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

Wf R.j.

FLYNN . Pres.
>o

D.L.DUNCAN, Secy.SS

æ ô M j n \O s

Since
'9 °7

A d v e llis in a C o .
INC.

L

° .e

s

P

M O I N E S

J

81
i

*

000,000 to $38,285,000 d u rin g 1939 and
cash and due from b an k s rose $21,000,000 to a to tal of $160,224,000. Gov­
ern m e n t secu rities totaled $103,238,000
—$5,000,000 u n d e r th e D ecem ber, 1938,
figure, w hile o th er bonds w ere up $10,000,000 to $89,853,000.
E a rn in g s of T he N o rth e rn T ru st
C om pany in 1939 w ere $906,914, or
$30.23 p er share.

"*s

Index to Advertisers
A
A l l e n W a l e s A d d i n g - M a c h i n e C o r p ..........
A l l y n a n d C o m p a n y , A. C ................................
A m e r i c a n I n s t i t u t e o f B u s i n e s s ..................
A m e r i c a n N a t i o n a l B k . a n d T r . C o ..........

83
37
80
60

«
B a n k e r s T r u s t C o m p a n y ............................. 58- 59
B e n F r a n k l i n F e d . S a v . & L o a n A s s ’n . . 78
B r e w e r C o m p a n y , V . W ..................................... 35
C
C en tra l N atio n al B a n k & T ru st C o ....
C h a s e N a t i o n a l B a n k ......................................
C h e m i c a l B a n k & T r u s t C o m p a n y ..........
C i t y N a t ’l B a n k & T r u s t Co., C h i c a g o . .
C i t y N a t i o n a l B a n k , C l i n t o n .........................
C o m m e r c e T r u s t C o m p a n y .........................
C o m m e r c i a l I n v e s t m e n t T r u s t , I n c ..........
C o n t i n e n t a l - I l l i n o i s N a t . B k . & T r . C o..
C o n t i n e n t a l N a t i o n a l B a n k .........................
C r u m m e r a n d C o m p a n y .................................
Y*

t

3
6
72
44
68
64
32
54
45
39

n
D a v e n p o r t a n d C o m p a n y , F . E ................45 -7 2
D e s M o i n e s B l d g . L o a n & S a v . A s s ’n . . . 78
D r o v e r s N a t i o n a l B a n k ................................. 22
E
E m p i r e N a t i o n a l B a n k , S t. P a u l ...............
E r i c k s o n a n d C o m p a n y , C. E ......................

N atio n al B ank,
N atio n al B ank,
N atio n al B ank,
N atio n al B ank,

G
G a t e C i t y B l d g . & L o a n A s s ’n . . . .
G e n e r a l M o to r s A c c e p t a n c e Corp.
G o o d b o d y a n d C o m p a n y ..................
G u a r a n t y T r u s t C o ..................................

24
37
79
78
78
79
48

W e are h appy to list among

42
67
73
50
78
36
34
69

H
H a w k e y e M u t u a l H a i l A s s ’n ............
H o l l e y a n d S o n s ......................................
H o m e B ldg. & L o a n A s s o c ia tio n
H o m e F e d . S a v . & L o a n A s s ’n ..........
H o m e I n s u r a n c e C o m p a n y ...............
H o t e l M c A l p i n ...........................................
H o t e l W e l l i n g t o n ......................................

80
80
79
79
5
74
81

I
I n t e r - S t a t e F i n a n c e C o r p o r a t i o n ...............
I o w a -D e s M o in es N at. B k. & T r. C o ...
I o w a G u a r a n t e e , I n c .............................................
I o w a S t a t e B a n k & T r u s t C o ......................

35
84
38
70

L

L a M o n t e a n d S o n ................................................
L a m s o n B r o s ...............................................................
L e h m a n n B r o s ...........................................................
L e s s i n g A d v . C o .......................................................
Live Sto ck N a tio n a l B an k , C h i c a g o ....
L i v e S t o c k N a t i o n a l B a n k , O m a h a ..........
L iv e S to c k N a tio n a l B a n k , S io u x C ity . .

4

Farnam at 18th Street

LUNCHEON and DINNER
S u n d a y S erv ice

STELLA E. BARKER
708 Vi Locust St.
Des Moines, Iowa
(Second Floor)

M

N
N a t i o n a l B a n k o f D e t r o i t ..............................
N a t i o n a l S u r e t y C o r p o r a t i o n .......................
N o r t h w e s t e r n F e d . S a v . & L o a n A s s ’n . .
N o rth w e s te r n N a tio n a l L ife Ins. C o ....
N o r t h e r n T r u s t C o m p a n y ...................................
O m aha N a tio n a l B an k

34
25
78
27
71

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

19

P h i l a d e l p h i a N a t i o n a l B a n k .......................
P o l i c y h o l d e r s M u t u a l C a s u a l t y C o ............
P o l k C o u n t y F e d S a v . & L o a n A s s ’n . . . .
P r o g r e s s i v e M u t u a l I n s . A s s ’n ....................

56
81
76
24

P

it
R a d i s s o n H o t e l ....................................................... 52
R a n s o m T e a R o o m ................................................ 81
S
C o m p a n y ............................ 31
B a n k ................................... 75
C o m p a n y .............................. 74
B a n k , S. S t. P a u l . . . . 52
IT

U n i t e d F e d . S a v . & L o a n A s s ’n .................... 79
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . . 44
U n i t e d S t a t e s N a t i o n a l B a n k ....................... 40
V

V alley

S av in g s

B a n k ........................................

75

w
W a l t e r s C o m p a n y ................................................
W a t e r l o o B l d g . & L o a n A s s ’n ....................
W a t e r l o o S a v i n g s B a n k .................................
W e s t e r n M u t u a l F i r e I n s . C o ......................
W o o d B r o s T h r e s h e r C o ...................................

71
78
65
26
80

POLICVHOLDiRS IÏÏUÏUAL Cm UALTV ComPAIlV

Jju)afßtiitfivt-TTlaaitttumt StAvicts
Hom e Office: W est L iberty, Iow a
B usiness Office: D es M oines, Iowa
■

Full Coverage Automobile
Non-Cancellable Accident and Health
Commercial Accident and Health

OMAHA
A gency Inquiries Invited


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Federal Reserve Bank of St. Louis

W here R ea lly D elicious Food
Is Served

M c G u i r e , W e l c h & C o m p a n y ........................... 39
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 80
M e r c h a n t s N a t i o n a l B a n k ..................................
2
M o o n P r i n t i n g & E n g r a v i n g C o ................. 74
M o r t g a g e I n v e s t m e n t C o r p o r a t i o n .......... 38
M u t u a l S u r e t y C o m p a n y ................................. 28

Y ou too w ill thoroughly enjoy

Rooms With Bath
$2.00— $2.50

iZ com

4
39
33
80
63
43
46

ber of the banking fraternity.

S u rprisin gly R easonable R ates

*7 e a

I

(Z a n s e m

K

our regular guests, a large num ­

our Courtesy and H ospitality.

L jïa c e

K i r k e b y H o t e l s ..................................................... 70
K o c h B r o s .................................................................... 81

Scarborough and
S ecu rity N ational
Steel S to r a g e F ile
S to c k Y a rd s N at.

Hotel
Wellington

O m a h a ........................
S i o u x C i t y ...............
S t. L o u i s ...................
S t. P a u l .....................

O

51
81

F

F a r m e r s U n i o n L i f e I n s . C o .........................
F e d e r a l D i s c o u n t C o r p o r a t i o n ...............
F e d e r a l H o m e L o a n B a n k ...............................
F i r s t F e d . S a v . & L o a n A s s ’n., C h i c a g o .
F i r s t F e d . S a v . & L o a n A s s ’n., M p l s . . . .
F i r s t F e d . S a v . & L o a n A s s ’n., S t. J o s e p h
F i r s t N a t . B a n k & T r u s t Co., M p l s ..........

F irst
F irst
F irst
F irst

M ETAL
DESK

C A L E N D A R S

• Create custom er good-w ill and
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C. E. ERICKSON CO.
Incorporated

DES MOINES, IOWA

-----------A

-----------

82

In the Directors' Room
Thrifty

They All Do

“Is M cPherson in ?”
“Aye b u t h e ’s v u rra busy
h e ’s
sh arp en in g th e pho n o g rap h needle for
th e p a rty to n ig h t.”

Bouquet Tossing
M argaret A nglin th e sto ry goes left
th is m essage stu ck in th e m irro r of
Mrs. F isk e ’s d ressing room:
“M arg aret A nglin says Mrs. F isk e is
th e b est actress in A m erica.”
Mrs. F isk e read it, added tw o com ­
mas, stuck it in an envelope, and sent
it back to Miss A nglin. I t read:
“M argaret A nglin, says Mrs. Fiske,
is th e best actress in A m erica.”

And How!
Science Teacher: “W h at is velocity?”
Johnny: “I t ’s w h a t a person p u ts a
h ot plate dow n w ith .”

And She W as
G lam our Girl: “Yes, I ’ll endorse y o u r
cigarette for fifty th o u san d dollars.”
Agent: “I ’ll see you inh ale first.”

Just As Good
Diner: “Yes, I know fish is b rain
food, b u t I don’t care so m uch for fish.
Isn ’t th e re som e o th er b rain food?”
W aiter: “W ell, th e re ’s noodle soup.”

Same Thing

Convenient
Horace: “Well, good night, Mazie. I
hope I h av en ’t k ep t you up too late.”
Mazie: “Oh, no, Horace, n ot a t all. I
should have been gettin g up soon any­
w ay.”

Many Times
She: “T hey say a bachelor is a m an
w ho has been crossed in love.”
He: “Yes, and a m arried m an is one
w ho has been double-crossed.”

Not In Alcohol

Stick Around
“Say, w h a t’s th e idea of p u ttin g all
th a t m arshm allow and sy ru p on m y
sundae?”
“Well, pal, w hen you gotta goo, you
gotta goo!”

Good Idea

“Gee! M arried five y ears and no
children. Say, how do you avoid th e
sto rk ?”
“W e live in a tra ile r.”

To Highest Bidder

Easier To Do

Bookkeeper: “I ’ll have to have a
raise, sir, th e re are th re e o th er com ­
panies a fte r m e.”
E m ployer: “Is th a t so? W h at com ­
panies?”
Bookkeeper: “L ight, ’phone and gas.”

Mrs.
over a
Mrs.
a new


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Federal Reserve Bank of St. Louis

F rien d —Ha, ha . . . I see y o u ’re a
m an w ho blows his ow n horn.
H orn P layer—Your m istake, pal. It
w on’t be m ine u n til I ’ve m ade six
m ore paym ents on it.

H e—T hey say fish is a gran d b rain
food.
Gal—I eat lots of fish.
H e—Darn! A nother popular th eo ry
shot to heck!

Groom-to-Be: “A nd now, Doc, th a t
I ’ve told you I ’m going to m a rry Anne,
th e re ’s one th in g I w an t to get off m y
ch est.”
Doc: “You ju st tell me about it, m y
boy.”
Groom-to-Be: “A tattooed h e a rt w ith
th e nam e Mabel on it!”

“Q uarterm aster, is th a t our tru e po­
sition ?”
“Yes, sir.”
“You’re positive?”
“Yes, sir.”
“T hen tak e off y o u r hat. W e’re in
W estm in ster A bbey.”

Part Owner

The n ative student, w ritin g a le tte r
to th e su p erin ten d en t of th e m ission,
desired to end w ith th e w ords: “May
H eaven p reserve you.”
N ot being quite confident of th e
m eaning of “preserv e,” he looked it up
in a dictionary. W hen th e le tte r
reached th e sup erin ten d en t, it ended
w ith th e w ords: “And m ay H eaven
pickle you.”

School V isitor: “W h a t’s th e m atter,
m y boy?”
Pupil: “P alp itatio n and insom nia.”
School V isitor: “B ut you can ’t be su f­
ferin g from these th in g s.”
Pupil: “It is n ’t suffering, sir. I t’s
spelling.”

A t Rest

W om an—Doctor, I w an t you to help
m y husband.
P sy ch iatrist—Well, w h a t’s w rong.
W om an — H e’s w o rry in g about
money.
P sy ch iatrist—Now, now, I ’ll relieve
him of that.

Fink: “Did y o u r husband tu rn
new leaf N ew Y ear’s?”
B rink: “No, b u t he tu rn e d over
car.”

Smart Wilbur
The dream y-eyed a u th o r claw ed
fran tically th ro u g h his desk for th a t
recen tly com pleted m anuscript, th e n
gave up in u tte r despair. A pproach­
ing his wife, he asked :
“D arling, it’s gone! My beautiful
story. Do you th in k our little W ilbur
ate it u p ?”
“N ow how could he?” asked th e
wife. “You know he can ’t read .”

That Smelt

Can't C atch Up

Shut Up!
The ham actor, noted for his w ild
hand-w aving w hile arguing, w a s
h aran g u in g an acquaintance.
“It w on’t do you a b it of good to
ta lk ,” p ro tested th e listener. “I fo r­
got m y glasses and I can ’t h ear a w ord
y o u ’re saying.”

Cheer Up!
One night, as a m essenger from th e
office of an evening paper w as passing
along th e quays on th e banks of th e
river, he h eard the sound of som eone
struggling in th e w ater.
“A re you drow ning?” he shouted.
“I am ,” replied a feeble voice from
th e w ater.
“W hat a pity!” said th e lad, con­
solingly. “You are ju st too late for th e
last edition tonight. B ut cheer up;
y o u ’ll have a nice little p arag rap h all
to yourself in th e m orning.”

£m m

NE W M O D E L S
introduced within the last three years increased our sales during 1939
beyond the sales of any full year in the history of our organization.
Triple visibility, error proof step-up keyboard, automatic ciphers and
many new scientific features assure high speed with absolute accuracy.

LLLEN

W

W A L E S A ™

ALLEN WALES ADDING M ACHINE C O RP. 515 M a d iso n A v e n u e • N ew York, N. Y.
SALES AND SERVICE IN 400 AM ERICAN CITIES AND IN 40 FO R EIG N COUNTRIES

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Federal Reserve Bank of St. Louis

1

8

7

5

.

.

.

H Dep(v/daM e Cor eip on (kn t CcmmcCion
1

Iowa Banks and Bankers are invited to use all of the correspondent
services provided by Iowa’s Largest Bank:

1 — Depository for Reserves

4 — Prompt Collections

2 — Complete Loan Facilities

5 — Trust Services

3 — Safe-Keeping of Securities

6—

Credit Information

7 — Government and Municipal
Bonds for Investment

Iowa-Des Moines National Bank
& Trust Company
M em b er F ederal D eposit Insurance Corporation

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Federal Reserve Bank of St. Louis