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NUARy 1941 A W IN T E R V IS T A IN G R E E N W O O D PA RK, D E S M O IN E S How O ur Bank Solved the W age-Hour Problem https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Page 11 f <- <£ ^ r <^ < A -< ^ ^ NEW » YEAR A new year means new responsibilities and new efforts on our part to increase our service to our correspondent banks. < t « ' « «é « t <fc <t «f r «fc < < - c Because of our efficient transit departm ent, our carefully trained personnel, our close association with banks for more than 59 years, and our eagerness to render unusual service, the Merchants National Bank is your logical correspondent in Cedar Rapids in 1941. V A CEDAR R A P ID S BA N K CEDAR RA® DIOS SERVICING A LL IOWA MERCHANTS NATIONAL BANK OFFICERS 4 ^ <ic J am es E. H am ilton , Chairman S. E. Coquillette , President H. N. B oyson , Vice President R oy C. F olsom , Vice President Mark J. Myers , V. Pres. & Cashier George F. M iller , V. Pres. & Tr. Officer M arvin R. S elden , Vice President F red W. S m it h , Vice President J o h n T. H amilton II, Vice President R. W. Man att , Asst. Cashier L. W. B roulik , Asst. Cashier P eter B ailey , Asst. Cashier R. D. B row n , Asst. Cashier 0 . A. K earney , Asst. Cashier S tanley J. M ohrbacher , Asst. Cashier E. B. Zb a n e k , Building Manager m 5 Ê* 4m Cedar R apids Iow a Member Federal Deposit Insurance Corporation N orthw estern Banker, published m onthly by the D e Puy P u blishing Company, Inc., at 527 7th Street, D es M oines, Iowa. Subscription, 35c per copy, $3.00 per year. E ntered as second-class matter at the D es M oines post office. Copyright, 1941. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V S T A T E M E N T OF C O N D I T I O N December 31, 1940 "Iowa's frien d ly Bank" CENTRAL NATIONAL BANK AND TR U ST COMPANY of M E M B E R F E D E R A L D e s U lo in e s D E P O S I T I N S U R A N C E R E SO U R C E S C O R P O R A T I O N L IA B IL IT IE S Cash and d ue from F ed era l R e s e r v e and oth er B an ks_$10,944,448.58 U n ited States G ov ern m en t secu rities 3,556,137.09 D em an d D e p o s it s __$21,502,063.18 S avings D e p o s it s ___ 2,285,931.31 P u b lic D e p o s i t s ___ 4,096,243.88 “ $27,884,238.37 $14,500,585.67 M u n icip a l S ecu rities ____________ 1,314,885.46 M arket B o n d s ___________________ 1,524,488.81 S hort T im e S ecu rities____________ 2,305,339.09 Loans and D isc o u n ts_____________ 10,045,243.32 O verdrafts ----------------------------------5,150.50 S tock F ed eral R eserve B a n k _____ 43,500.00 A ccru ed In terest R ec eiv a b le_____ 109,007.18 B an k P rem ises and E q u ip m e n t___ 296,610.85 D isco u n t C o lle c t e d ______________ 118,715.84 C om m on S t o c k ______ $660,000.00 P referred S t o c k ______ 340,000.00 1,000,000.00 S urplu s __________________________ U n d iv id ed P r o f it s ________________ R eserve for R etirem en t of P re ferred Stock ___________________ O ther R e s e r v e s __________________ T o ta l __________________________ $30,144,810.88 T otal 460.000. 00 254,078.81 340.000. 00 87,777.86 $30,144,810.88 U n ite d S ta te s G o v e r n m e n t a n d o th e r s e c u r iti e s c a r r ie d a t $953,817.00 a re p le d g e d to s e c u r e p u b lic a n d tr u s t d e p o s it s a s r e q u ir e d b y la w . D IR E C T O R S G. E. BRAMMER MARK L. JO H N SO N 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 E. F. BUCKLEY V IC E P R E S ID E N T HARRY GOLDMAN P R E S ID E N T , C. C. T A F T CO. WM. J. G O O D W IN C H A IR M A N , B O A R D O F D IR E C T O R S H. F. GROSS REAL E ST A TE GUY E. LOGAN P R E S ID E N T , S T A N D A R D C H E M IC A L CO. W A LTER E. MUIR P R E S ID E N T LUTHE HARDW ARE C O M PA N Y GEORGE A. PEAK REAL E STA TE JU LIA N A. P E 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. PIE R C E 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 . V IC E P R E S ID E N T , L A N G A N P A P E R CO. JO H N A. GUNN G IB S O N , S T E W A R T & G A R R E T T 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. E. TO N E GROVER C. H U BBELL HEN RY 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W A LTER L. STEW ART REAL ESTA TE 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. The Legions of Credit are Mobilized Behind the vast production machine of service at costs to the borrower lower national defense, now beginning to mesh than ever before in the nation's history. into gear, stand billions of credit dollars The Chase N ational Bank, in its rela mobilized in the commercial banking sys tio n sh ip s w ith tem of the nation. th ro u g h o u t the country, is earnestly co T his g re a t arm y of c re d it d o llars c o rre s p o n d e n t banks operating in the effort to make our assures industry of sufficient funds to ^dollar arm yy/ effective and useful, to the meet the demands of our national de end th at the needs of the nation may fense program. It answers the call to be m et swiftlv and fully, THE CHASE NATIONAL BANK OF THE C!TY OF NEW Y O R K Member Federal Deposit Insurance Corporation N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January Î9M 5 INSURANCE PROTECTION M -U -L-T -I-P -L-I-E -D iJ HA% T t#peP f COV&M6* ■ -T"i Business men, bankers, credit executives and all others who are interested in safeguarding property values — whether theirs or others’— know that the safest, most complete protection is afforded in the Extended Coverage Endorsement. This elastic coverage is added to the regular fire policy at a very slight cost increase. 0vir>9s \sV »V.O» dorse^’ IS i l i i l to cover ì \n^r' i broker r.R«d '° Covero9® .C,c'iOr'e toleres'5' EXPLOSION VEHICLE DAMAGE E*'ende tteans S vO plied P' O íV a A C fí WINDSTORM m h a il æ SMOKE & SMUDGE RIOT AIRCRAFT DAMAGE f^ e m H B. M T U I ? U U M 1 ? INSURANCE 1 11 Ih LI U iVI h c o m pa n y N E W YORK F IR E -A U T O M O B IL E — MARINE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a nd ALLIED LINES OF INSURANCE La M onte was i n v e n t e d i t ' d ‘»tro 11 the found« of out Company, through constant «search aftd manufacturing ovements in fo rm u la e brought to tbcu i tim e onward . o u t p ro d u cts have k een itate of effectiveness. c to feel that the icuotiahle instruments. a«o ^ a valuable papers. W becnava r\o in America- N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19b l • n o r%h w e / t e r n • J A N U A R Y 19 4 1 FO R TY-SIX TH Y E A R NUM BER 642 Oldest Financial Journal West of the Mississippi River IN THIS ISSUE Editorials Across the Desk from the Publisher. C LIFFO RD DE PUY Feature A rticles Publisher 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 Editor J. STUART D A V IS Associate Editor Frontispiece ..................... .............................. How Our Bank Solved the Wage-Hour Problem............................. ... H. C. Winder News and Views............... ....................................................................Clifford De Puy A Country-town Director Speaks....................... ..........................William C. Shaper Federal Registration of All Issues Should Be Required........................................... Consumer Credit Operations Are Profitable for Our Bank............. ,....Ray Brandt Legal Department—W hat Does a Chattel Mortgage Cover?................................... W hat the Financial Advertiser W ants to Know About Advertising................. ..... ..... ......................................................................................................Preston E. Reed How Direct Mail Will Make Friends for Your Bank................................................. North Dakota Farm Income Hits a New High............... ................................... Money Is a Commodity....................................................................... „1. E. Bradshaw 11 12 13 14 15 16 17 18 20 21 insurance 527 Seventh Street, Things You Will W ant to Know About Insurance 23 Des Moines, Iowa Telephone 4-8163 Bonds and Investments The Month’s M arket Maneuvers.................. Iowa Investment Bankers Annual Meeting. Nebraska Investment Banking News.......... N EW Y O R K O FFIC E Frank P. Syms V ice President 505 Fifth A ve. Suite 1202 Telephone MUrray Hill 2-0326 M IN N E A P O L IS O FFIC E J. A . Sarazen Associate Editor Telephone Hyland 0575 James H. Clarke 29 ............................... 32 .............................. 35 State Banking News Nebraska News ................................... ........... Omaha Clearings ........................ Lincoln Locals ........................................ South Dakota News .................................... Minnesota News .... ....................... Twin City News............ .......................... North Dakota News....................................... . Montana N ew s................................................ Iowa News ........................... ........................... News from Here and There................... ......................... ......................... ......................... ................. ................ ......................... ............... ........ ................ ......................... J. A. Sarazen 37 39 41 45 47 50 55 56 57 70 The Directors* Room A Few Short Stories to Make You Laugh. M EM BER A u d it Bureau of Circulations Financial Advertisers Association https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Across the Desk From the Publisher Plans to Prevent Based 011 the unani' r a | mous approval of the Inflation by Fede F ed eral Reserve B oard, Reserve Board the presidents of the 12 F ed eral Reserve B anks and the F ed eral A dvisory Council which represents the 7,000 individual banks belonging to the F ed eral Reserve System, a recom m endation has been m ade fo r the purpose of prev en ting fu tu re inflation. This is the first tim e th a t a re p o rt of this ch ar ac te r has ever been made. Also the re p o rt points out th a t our present vast expenditures for our m ilitary program m ake it necessary to review our existing m onetary m a chine and to tak e m easures to prevent the de velopm ent of inflationary tendencies attrib u tab le to defects in the m achinery of credit control. The fa ct is th a t these tendencies, if unchecked, w ould produce a rise of prices and would re ta rd the natio n al effort for defense and greatly in crease its cost. The 5 m ain featu res of the F ed eral Reserve B o a rd ’s plan to prevent inflation are these: 1. Immediate increase by congressional action of deposit reserve requirements on all federal re serve member banks; authorization for the federal reserve board to double these requirements if necessary in the future; make all banks, whether chartered by the federal government or states, subject to these requirements. 2. Repeal treasury authority to issue 3 billion dollars of “ greenback” money, repeal treasury authority to issue money against the foreign silver it buys, and allow to expire June 30 the presi dent’s power to devalue the dollar. 3. Neutralize money expansion effect resulting from United States purchases of foreign gold. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19 W 4. Sell future government securities to indi viduals and corporations, and not to the banks. 5. Gradually increase taxes until a balanced budget is reached, not later than some future time when the country w ill have reached its ‘ ‘full utilization of its economic capacity, with appro priate considerations of both employment and production. ’ ’ W hether such a program w ill be adopted is a question w hich the incom ing Congress will de cide, but one thing is sure, th a t the plan d ra s ti cally increases the F ed eral Reserve S y stem ’s powers at the expense of the T reasury D e p art m ent. Incidently this is the first tim e th a t C hairm an M arriner S. Eccles has ever talk ed about balan c ing the budget and perhaps at last he has been converted from liis idea of spending our w ay back to prosperity. The statem ent points out th a t the F ed eral R e serve System has the responsibility of cred it con tro l b u t has insufficient powers to effectively dis charge those duties and these 5 points referred to, if p u t into effect, would give them such power. W hether we agree w ith all the points as out lined or not, one thing is certain w hatever can be done to prevent an uncontrolled inflation in this country certainly should be done. Some authorities be Should Banks lieve th a t banks should Take Profits in tak e profits in Govern Government Bonds m ent bonds in order to m eet fu tu re increases in corporate income taxes. M any U nited States G overnm ent bond buyers have been ra th e r re lu c ta n t to purchase more se curities at this time. 9 One prom inent investm ent firm, in discussing this subject, said: “ Most banks now have very handsom e profits in th eir U nited S tates G overnm ent bond account. They know a t the present tim e it is necessary for them to p ay 24 per cent norm al ta x on realized profits, and some feel it is b e tte r to tak e the profits now and pay the tax th an to w ait u n til the ta x ra te m ight be 24 per cent, 30 per cent or 35 per cent and they m ight not have the profits to take. “ Those w ishing to realize a t best a portion of cu rre n t book profits have two courses open, e ith e r: “ (1) O u trig h t sale if they are disturbed over the c u rren t u n certain ties in the m ark et or “ (2) An exchange into other issues w hich would establish the profit b u t m aintain th eir in come acco u n t.” W h eth er individual banks should or should not tak e profits in G overnm ent bonds is, of course, fo r each individual bank to decide b u t it is a t least a very im p o rtan t question to consider in the m anagem ent of any bank a t this time. If you have n o t already done so, m ay we recom m end th a t you p u t on y o u r list of “ req u ired re a d in g ” for 1941 “ C apitalism the C re a to r” by Carl Snyder. This is the best answ er we have seen to all of the crack-pot theories of controlled economy, as well as an answ er to the theory of life based on communism, fascism, socialism or nazism. If you read nothing more th a n the first chapter it will be w orth the price of the book. Briefly “ C apitalism the C re a to r” presents the proof th a t Capital Savings and the benefits de riv ed from them have been the basis th ro u g h all the generations for w hatever progress has been m ade in the w orld and this book presents the proof th ro u g h statistical and fa c tu a l evidence. Mr. S nyder sum s it up in this w ay: “ There is one way, and only one way, th a t any people, in all history, have ever risen from barbarism and p overty to affluence and culture ; and th a t is by th a t co n centrated and highly organized system of p ro duction and exchange w hich we call Capi talistic : one way, and one alone. F u rth e r, th a t it is solely by the accum ulation (and concentra tion) of this C apital, and directly p roportional to the am ount of this accum ulation, th a t the m odern in d u strial nations have arisen ; perhaps the sole "Capitalism The Creator" w ay th ro u g h o u t the whole of 8 or 10 thousand years of economic h isto ry .” P erhaps some day we will realize the tru e place th a t Capitalism occupies in the w orld and th a t the profit motive is basic in every hum an h ea rt and soul and as the author s a y s : “ all this re p re sents the aggressive drive of the deepest and strongest of hum an m o tiv atio n s; the will to live, to gain, to discover, to conquer; and th a t w hen ever these begin to wane and w eaken, and a n a tion is given over to visionaries, doctrinaries, and novices in ‘social experim entation,’ its decadence has b eg u n .” L et us hope, th a t out of the w orld of turm oil and blood-shed we m ay in the n ea r fu tu re regain our equilibrium in our relationship betw een n a tions and individuals and when we do we will find th a t “ C apitalism the C re a to r” will again be recognized fo r its real w orth and value as a m otivating force in all the w orthw hile actions of m ankind. Let Investors, Not Banks, Finance Government A lready the banks of the U nited S tates have a trem endous am ount of th eir funds in Govern m ent securities. M any economists and financiers believe th a t our financing to be used for defense purposes should come as m uch as possible from the public ra th e r than from the banks. This th o u g h t was recently expressed by W inthrop W. A ldrich, C hairm an B oard of D irectors of the Chase N ational B ank of the City of New Y ork when he said: “ To safeguard his interests, the increase in public debt incident to the defense program should be lodged as fa r as possible w ith investors. G overnm ent securities should not be coined into com m ercial bank credit. Increases in fiat credit are quite as harm ful in the long ru n to the body economic as are increases in fiat cu r rency. D ictates of prudence require th a t the p u b lic deficit not be so financed th a t the defense p ro gram will assume a feverish character to be fol lowed by an equally severe slump. Only by fo l low ing conservative fiscal policies will the p riv ate citizen be protected, and will our in d u strial m a chine operate m ost efficiently to bring the defense program to a successful conclusion.” Also the more G overnm ent bonds and Govern m ent securities th a t are owned by the general public, the more will th a t same public be in te r ested in seeing governm ent economies carried out and a balanced b udget established a t the earliest possible moment. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19bl N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January Í9 b l 11 How O u r Bank Solved Wage-Hour Problem The H E F a ir L abor S tan d ard s A ct of 1938, com m only kn o w n as th e W age an d H o u r Law, becam e ef fective O ctober 24th of th a t year. Since th a t tim e, a tte m p ts have been m ade to secure exem ption for b oth S tate and N ational B anks. To date effort in th a t direction has n o t been successful. U nder th e circum stances, it seem s to m an y th a t th e safe course to p u rsu e w ould be to consider b an k s as covered by th e Act u n til such tim e as banks m ig h t be definitely exem pted. As th e su b ject of W age and H our com pliance has been th o ro u g h ly dis cussed by v ario u s b an k in g groups th ro u g h o u t th e c o u n try d u rin g th e p ast tw o years, I do n o t propose to advance arg u m en ts for or ag ain st ex em ption. As w e have recen tly passed th ro u g h an inspection by th e W age and H o u r D ivision, I do propose to outline our experience in th e hope th a t it m ay be helpful. We have found th e W age and H our D ivision m ore th a n w illing to help us w ith our problem s and as fa r as we are concerned, th e W age and H our Law has ceased to be a bugbear. W ith in th e p a st year, in te rp re ta tiv e b u lle tin s and ru lin g s issued by th e D ivision on points n o t m ade clear in th e Act itself, have served to m ake com pliance less difficult. T L et us re v ie w som e of th e principal requ irem en ts of the Act, The M axim um S tan d ard W orkw eek provided by th e Act is: 44 h o u rs p e r w orkw eek from Oct. 24, 1938 to Oct. 24, 1939. 42 h o u rs p e r w o rk w eek from Oct. 24, 1939 to Oct. 24, 1940, 40 h o u rs p e r w ork w eek th e re a fter. T hese are n o t absolute lim itations upon th e n u m b er of h o u rs an em ploye m ay w ork. T he A ct m erely req u ires th a t w o rk above th ese w eekly lim its shall be paid for a t th e ra te of a t least one an d one-half tim es th e em ployes re g u la r h o u rly ra te of pay. A w o rk w eek is seven consecutive, 24-hour days. It m ay begin a t an y tim e of th e day, b u t no changes in th e w orkw eek m ay be m ade for th e p u r pose of evading th e provisions of th e Act. T h ere is no lim itatio n on th e n um b er of h o u rs th a t m ay be w orked in any one day. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By H . C . W in d er Assistant Cashier Central National Bank & Trust Company, Des Moines (2 ) all tim e du rin g w hich an em ploye is suffered or p erm itted to w ork w h eth er or not he is req u ired to do so.” D eterm ination of w eek ly w age for salaried em ployes: The D ivision m akes th e follow ing statem en t in In te rp re ta tiv e B ulletin No. 4: “If th e em ploye is on a m onthly salary basis, th e m o n th ly salary is sub ject to tra n sla tio n into its equivalent w eekly w age by m u ltiplying by tw elve (the nu m b er of m onths) and dividing by fifty-tw o (the nu m b er of w eek s).” Records: H. C. W IN D E R The M inim um W age R ate required by th e A ct is: 30c p er h o u r for 6 y ears from Oct. 24, 1939 to Oct. 24, 1945, 40c p er h o u r th ereafter. C om pensation for overtim e m u st be paid in cash an d a t th e tim e w hen an em ploye n o rm ally received his com pensation. O vertim e paym ents m ay n o t be accum ulated and paid to th e em ploye q u arterly , sem i-annually or annually. W orking H ours; The D ivision m akes th e follow ing statem en t in In te rp re ta tive B ulletin No. 13: “The Act contains no express guide as to th e m an n er of com puting hours of w o rk and reasonable rules m u st be adopted for purposes of enforcem ent of th e W age and H our S tandards. As a general rule, hours w orked w ill in clude ( 1 ) all tim e d u rin g w hich an em ploye is req u ired to be on d u ty or to be on th e em ployer’s prem ises or to be a t a prescribed w orkplace, and E m ployers covered by any p rovi sions of th e A ct m u st keep records, though no definite form is required. The only req u irem en ts are th e follow ing: 1. R ecords m u st be k e p t e ith er at the place of em ploym ent or at an of fice of th e em ployer in th e sam e state. 2. T hey m u st be k ep t for at least four years and be open for inspection and tra n sc rip tio n by rep resen tativ es of th e W age and H our Division. 3. T hey m u st be in such condition th a t an inspector can easily obtain th e follow ing inform ation: (a) Nam e in full, (b) hom e address, (c) date of b irth if u n d er 19, (d) ho u rs w orked each w orkday and each w orkw eek, (e) total w ages paid each w orkw eek, (f) date of paym ent, (g) reg u lar h o u r ly ra te of pay and basis upon w hich w ages are paid, (h) earnings at reg u lar h o u rly ra te of pay for each w o rk week; and (i) ex tra earnings for over tim e. T here can be no su b stitu te for an ac curate daily record of th e n um ber of h o u rs actually w orked by each em ploye. The posting of a notice speci fying th e reg u lar h o urs of w ork and forbidding overtim e “w ith o u t express official a u th o rity ” does not release an em ployer. E xem ptions: Due to th e publicity given th e re cent definition of executive and ad m in istrativ e em ployes, it does not seem necessary to review those defini tions. B ut w e should b ear in m ind (T u rn to page 41, Please) N orthw estern B anker January 1941 12 N ew s OF THE a n d V ie w s B A N K IN G W O RLD W. A. S aw tell, p resid en t of th e Stock Y ards N ational B ank of Omaha, in v ited us to lunch th e o th er day w hen w e w ere in his fine institu tio n . The Stock Y ards N ational has m ade ex cellent progress th is year, an d th is reflects real credit on Mr. Saw tell and his associates. By Clifford D ePuy T is 42 floors above th e sidew alk—it is th e E lectric Club in th e Civic Opera B uilding—it is th e p enthouse w here th e m em ories of th e late Sam uel In su ll linger on b u t are n o t fo r gotten. T he club is decorated w ith holly an d flow ers an d th e Y uletide “sp irit” flows from th e pun ch bowl and th e bubbling souls g athered around. I t is th e a n n u a l C hristm as p a rty of th e Chicago F in an cial A dver tise rs A ssociation. C hester L. P rice is m aster of cerem onies. R obert L ind q uist an d his ch arm in g w ife—w ho m issed th e H ot Springs, V irginia FAA m eeting because of sickness in th e fam ily—are am ong tho se p re se n t and add joy to th e occasion. Guy Cooke and C harles S. F ry e ac t as auctioneers for a p air of re d “w arm er-u p p ers” 1941 ladies model. P reston R eed and L u cy D avid know everyone by th e ir first nam es. Ju liu s K. W aibel, J. M. E aston and John O’L au gh lin arriv e a little late. P ete because of a b udget m eeting a t th e bank. Gaylord Morse looking p lu m p er th a n ever, renew ing old acquaintances. D on Cameron dem o n stra tin g his u su al ch arm and grac iousness. M abel “gorgeous blond” W hite besieged by dancing p artn ers. R ufus R. Jeffris discussing h ig h er m ath em atics an d h av in g fun. Jack D aw son tellin g th a t he is about to b e come a “g ran d p a.” Sue E. D ow n in g w earin g h e r lovely dim ples and cap tiv a tin g everyone. Mrs. C harles M. (E rilla Joh nson ) F oresm an rem in isc ing about h e r girlhood days in Des Moines. T h en stan d in g by th e w indow you look n o rth to w ard th e M erchandise M art w hich is illu m in ated like a g re a t castle. W eaving in and out on th e stre e ts below an d over bridges an d dodging beh in d buildings are stre e t cars an d tra in s an d tax is w hich look like m in ia tu re toy rep ro d u ctio n s w ith th e ir tin y lig h ts flickering in th e d a rk ness like so m any irid escen t fire flies. T h en you rem em b er th a t you have th e n e x t dance and you are glad P res R eed inv ited you to such a g ra n d p a rty an d also th a t you live in a co u n try w here th e stre e ts are still lig h ted a t n ig h t an d w h ere “black o u ts” are n o t p a rt of th e regu latio n s w h en th e len g th en in g shadow s fall an d th e su n has gone to re st in th e W est. I N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^1 Carl F rederickson, p resid en t of the Live Stock N ational B ank of Sioux City, is tre a su re r of th e Sioux City R o tary Club and a m em ber of th e b oard of directors. H en ry H. B yers, secretary of C harles E. W alters & Co. of Omaha, attended th e Rose Bowl game, and he said th ere w ere p len ty of “ro ses” outside of th e Bowl. A. G. Sam, vice p resid en t of th e F irst N ational B ank of Sioux City, is a real “outdoor m an.” H e has p u rchased a b eau tiful new hom e su rro u n d ed by tw o acres, on th e grounds of w hich are 18 kinds of b eautiful trees, and it keeps him busy looking a fte r his new estate w hen ev er o p p o rtu n ity and w ea th er conditions w ill perm it. B. M. AVheelock, vice p resid en t of th e S ecurity N ational Bank, and R alph W . M oorhead, associate pu b lish er of th e N orth w estern B anker, used to be on th e sam e ten n is team w h en th ey w ere in G rinnell College. M aybe it w ould be a good idea for th em to p u t on an exhibition m atch at th e n ex t state b an k ers convention. R ay R idge, vice p resid en t of th e O m aha N ational Bank, is also state vice p resid en t for N ebraska of the A. B. A. T h ere are now 207 m em bers in N e b raska, and 32 m em bers w ere tak en in ju s t recently. T his sto ry w as told to m e by th e vice p resid en t of one of th e biggest b an k s in th e M iddle W est about a b an k ex am iner w ho w as checking th e b an k and told th e officers in all seriousness th a t th ey m u st pass a rule forbidding girls in th e bank to w ear tig h t sw eaters. T he basis for this, th e ex am iner said, w as th a t he saw 10 y oung m en all stan d in g aro u n d one desk w here one of th e m ost beau tifu l young ladies in th e b an k w as w orking. P erh ap s th is is th e rev erse of th e young m an w ho w as looking th ro u g h a k nothole a t a n u d ist cam p and re m arked, “Gee w hiz, th a t blonde over th e re w ould certain ly look b eautiful in a sw eater”! AV. B. M illard, Jr., vice presid en t of th e Om aha N ational Bank, is also ch airm an of th e O m aha Com m ittee for B ritish W ar Relief, and visited New Y ork last m onth, w here he conferred w ith natio n al h ead q u arters officers. T he w ork w hich Mr. M illard has been doing has received praise in New York, as th ey w ere v ery m uch pleased w ith th e response m ade by u n its in Om aha and o th er N ebraska cities. T he goal placed for th e n atio n al or ganization is $20 ,000 ,000 , one-fourth of w hich has already been raised. AVinthrop A ldrich, C hairm an of th e B oard of th e Chase N ational B ank of New Y ork City, is also ch airm an of th e n a tional society. W illiam B. H u ghes, th e popular and well-liked secretary of th e N ebraska B ankers A ssociation, h ad only about a two-day vacation th is sum m er, and w hen w e dropped in to v isit w ith him , “Believe it or N ot” he w as leaving for gam e of golf. Jack AA7. H u g h es, presid en t of th e G uarantee M utual Life In su ran ce Com pany of Omaha, is B ill’s b ro th er, and is also a crack golfer. In addi tio n to being h igh up in financial circles, th ese H ughes boys are also h a rd h itte rs —w h e th e r a t golf balls or in business. If you are in Chicago and v isit th e new est b an k in th e city you w ill ap proach gla ss doors w hich a u to m ati cally open as you b reak th e circu it of the m agic eye. Inside you w ill step on carpets tw o inches th ick in th e lobby of th e b ank — the on ly bank in A m erica w h ich has ru gs and carpets in the lobby, as w ell as in th e officers’ p riv ate room s. E v ery w h ere you w ill find a m odern stream lin ed city club atm osphere. The tellers and book keepers talk w ith you n ot b ehind grill w ork, b u t across open co unters and greet you w ith a smile. T he ch airm an of th e board and th e p resid en t’s offices are th e last w ords in in terio r decorat ing and th e y are delightful to th e eye and restfu l to th e pulse. A nd if you don’t know the nam e of th e b an k by now, it is th e La Salle N ational B ank a t 135 South La Salle S treet of w hich L aurance A rm our is ch airm an of th e board and C. R ay P h illip s, presid en t and Leonard C. P h illip s (no relation (T u rn to page 72, Please) 13 When The Board M eets Country-Tow n Director Speaks IRST: As a d irecto r of a county- F seat c o u n try tow n b an k for th irty years, h av in g know n p ersonally and in tim a te ly officers an d directors of m an y sm all-tow n banks, some w hose b an k s w en t dow n d u rin g th e depressions an d som e w hose b anks have w ith sto o d th e depressions, I w an t to say for th e sm all-tow n b an k er th a t I am absolutely convinced th a t ninety-nine out of every h u n d red b an k ers are honest, and th a t th e y are honestly o p eratin g th e ir b an k s w ith a view of serv in g th e co m m unity and th e public in w hich th e b an k is lo cated. I w a n t to state fu rth e r, m any have sacrificed th e ir p riv ate savings and p ro p e rty in an a tte m p t to save th eir in stitu tio n s an d m an y tim es su p erv isin g a u th o ritie s have ta k e n ad vantage of th e officers and directo rs and forced th em to m ake sacrifices w hich did n e ith e r th e b an k an y good nor th e com m unity in w hich th e b ank was located, b u t did do th e officers and d irecto rs irre p a ra b le dam age. Second: T he su p erv isin g au th o rities, p a rtly because of necessity b u t m ore often because of u n n ecessary re d tape regulations, have caused a certain cynicism am ong sm all-tow n b ankers. The old fashion v irtu e s of h onesty and th r if t of th e b o rro w ers count for little in th e value of a loan because th e ex am ining a u th o rity does not know th e individual b o rro w er p erso n ally and, consequently, th e good old fashion v irtu e s count for v e ry little in th e classification of th e loan. T his policy has reflected itself in th e a tti tude of th e public to w ard th e sm all tow n b an k to such an e x te n t th a t th e m an on th e stre e t has come to believe th a t th e re is a w ide g ulf b etw een good loans and th e good old fashion hon- By W illiam C . Shaper Director Broken Bow S ta te Bank Broken Bow, Nebraska est v irtues. T h at is, th a t th e common m an h a sn ’t m uch of a chance. T his a ttitu d e on th e p a rt of th e public is finding su p p o rt in th e v arious gov e rn m e n tal loan agencies, relief and as sistance organizations, so th a t th e le gitim ate ban k in g business is gradually an d alm ost im perceptibly slipping from p riv ate en terp rise to g overnm ent b an k in g and loaning. Third: T he p a rt th e officers and di recto rs of th e sm all-tow n b ank m ust play is to change th e public a ttitu d e to w ard th e sm all-tow n bank. T his m ay be done p a rtly by th e m any little courtesies and a tten tio n s on th e p a rt of th e officers and directors w hich good breeding requires. T hen too, sm all loans based upon character, th rift and decent living w ill do as m uch as an y th in g to resto re banks in co u n try tow ns to th e ir form er good stan d in g in th e co u n try com m unity. Supervising au th o rities should encour age a sm all per cent of th e b ank loans to be placed in th is type of investm ent. T h a t w ill b rin g to th e b an k th e smallam o u n t bo rro w er and b rin g to the b an k th e com m on m an, and th u s give th e officers of th e b an k an op p o rtu n ity to cu ltivate th a t good w ill and good a ttitu d e of th e public w hich is so n ecessary for th e pro p er friendly re lationship betw een th e m an on th e stre e t and th e bank. Fourth: The d irector can use his influence and prestige to encourage th e m an in need of a few dollars, to borrow from th e b an k ra th e r th a n to pay ex o rb itan t and crim inally high rates to th e loan sh a rk and broker, by w h atev er nam e or disguise, th a t exists in ev ery sm all com m unity. F ifth: E v ery d irector should be a so rt of a public relatio n m an in addi tion to raisin g Cain w ith th e officers and supervising authorities. A . I. B. Conference The fifth R egional In te rc h a p ter F ac u lty C onference of th e A m erican In stitu te of B anking, em bracing chapters and stu d y groups from seven cen tral states, w as held in Chicago last m onth. B ankers, law yers, college professors and accountants w ere am ong th e in stru c to rs from Chicago, St. Louis, M in neapolis, St. P au l and o th er cities w ho w ere active in th e discussion of th e In s titu te ’s teaching m ethods. T he conference w as u n d er th e direc tion of Dr. W illiam A. Irw in, N ational E ducational D irector, A m erican In sti tu te of B anking. A m ong th e speakers w ere H a rry A. B rinkm an, vice p resi dent, H a rris T ru st and Savings Bank, w ho spoke on “W h at th e Senior B ank er E xpects of th e In stitu te ,” Jo h n S. Stubblefield, president, Peoples State Bank, St. Joseph, M ichigan; Dr. Isaac L ippincott, W ashington U niver sity, St. Louis, M issouri, and Jay F. C hrist of th e U n iv ersity of Chicago. C. E d g ar Johnson, a ssistan t vice p resi dent of The F irs t N ational B ank of Chicago and m em ber executive coun cil A. I. B., presided a t th e luncheon and d in n er m eetings. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 14 Federal Registration of AH Issues Should Be Required Annual Year-End Bond Review by Halsey, Stuart & Company, Inc., Analyzes Past, Present, and Future of this Type of Investment A NALYSIS of th e seem ingly A \ satisfactory show ing of th e * ' 1940 bond m a rk e t quickly re veals its u n su b sta n tia l foundation. T he rise in th e price level w as m ost g en eral in th e so-called ‘g ilt edge’ type of bonds; th e g re a te st activ ity in em is sions consisted of refu n d in g o pera tions. The fo rm er reflected th e p re vailing unw illin g n ess of investo rs to em ploy th e ir funds in an y b u t th e com paratively risk less ty p e of e n te r prise; th e latter, th e relu ctan ce of m anag em en t to in cu r new debts for an y except th e m ost u rg e n t re q u ire m e n ts”—so sta te H alsey, S tu a rt & Co., Inc. in th e ir a n n u a l year-end bond review . C ontinuing, th e y say, “Both of th ese a ttitu d e s reflected a p p reh en sion reg ard in g th e long-term outlook and d istru st of those factors an d poli cies held responsible for it. I t is sig nificant th a t even th e recen tly g reatly accelerated business activ ity and th e prospect for its continuance over th e n e a r te rm have n o t been sufficient to a lte r appreciably th is deep u n d erly in g concern about u ltim ate consequences.” “T he im m ediate cause of u n se ttle m en t grow ing out of th e w ar situ atio n is, of course, th e enorm ous expense involved in p re p a rin g for our ow n de fense. T his outlay, superim posed on th e several y ears of reduced natio n al incom e and v astly increased costs of g o v ern m en t o peration and debt charges, p re se n ts problem s w hich, if not h andled w ith w isdom and sta te s m anship, th re a te n n o t only our n a tio n al solvency b u t th e v ery founda tions of our w hole econom y.” In so fa r as th ese problem s directly affect th e in v estm en t m ark et, th e bond o rganization states th a t certain fu n d am en tal facts ap p ear inescapable. “C om paratively little new in v estm en t capital has been set aside in th is coun try d u rin g th e p ast te n years, and look ing ahead to th e dem ands of th e fo rth com ing y ears it ap p ears likely th a t little m ore, if as m uch, w ill be con served in th a t period. A su b stan tial p a rt of w h atev er profits re s u lt from activ ity grow ing out of th e defense pro g ram w ill go e ith e r to th e govern- // N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19bl m en t (in th e form of taxes), w hich w ill consum e such w ealth in goods or services th a t are n ot reproductive, or to labor (in th e form of w ages) w hich, w hile adding to th e dem and for con sum able goods, is n ot likely to increase g reatly th e in v estm en t backlog of th e co u n try .” “Such a situ atio n obviously points to w ard fu rth e r reduction b oth in th e supply of and th e dem and for p riv ate in v estm en t securities. U nless our course is altered, it suggests th e u lti m ate possibility of consum ption as produced, of su b stan tially all c u rre n t incom e th ro u g h th e day-to-day n e cessities of th e go v ern m en t and th e individual. If c u rre n t incom e is in adequate, th e g rad u al ex tin g u ish m en t of p ast accum ulations to m ake up deficits is th e fu rth e r prospect.” “W h eth er w e can avoid such an u n h ap p y ev en tu ality depends on both th e e x ten t and d u ratio n of existing ex tra o rd in ary dem ands and th e w is dom of our natio n al leaders, as w ell as on th e will, re s tra in t and discipline of our people in th e y ears ahead. The w ise course on th e p a rt of b oth gov e rn m en t and th e people w ould appear to be to face th e d istu rb in g realities of th e situ atio n fo rth rig h tly and to recog nize th e need for revival of such basic v irtu es as efficiency, th rift, in d u stry and team -w ork—in short, to so plan and m anage our affairs th a t w h atev er effort and sacrifice m ay be req u ired to su rm o u n t c u rre n t and im pending problem s, our basic liberties and econom y w ill be preserv ed for th e fu tu re .” T u rn in g to th e question of financ ing th e defense program , th e opinion is expressed th at, “Q uestions of p lan t expansion to m eet th e additional de m ands of both go v ern m en t and con sum ers w ill p resen t difficult problem s to m anagem ent, w hose n a tu ra l im pulse w ill be to do all in its pow er to help, y e t w ho w ill quite n a tu ra lly be re stra in e d by th e prospect of excess facilities and burdensom e debt as de fense dem ands ta p e r off. I t is to be expected th erefo re th a t m uch of th e longer term financing of such expan sion as is done w ill come from govern m en t sources, a developm ent w hich n eith e r in d u strialists n o r in v estm en t b an k ers contem plate w ith pleasure, y et w hich, in view of th e realities of th e situation, seem s unavoidable. Be cause of th e cheapness of borrow ed m oney an d th e p rev ailin g question able attractiv en ess of equity securities, it seem s probable th at, am ong estab lished en terp rises, fixed in te re st se curities ra th e r th a n equity issues m ay be favored by b oth m anagem ent an d investors for such p riv ate in d u stria l financing as m ay develop out of th e defense p rogram .” On th e now c u rre n t question of re m oval of th e ta x im m u n ity of m unici pal bonds, th e in v estm en t house states th at, “If th e revived ag itation for th e rem oval of th e tax-exem pt featu re from fu tu re issues of m unicipal bonds is successful, an o th e r d e te rre n t to ad ditional m unicipal financing w ill r e sult, for th e cost of such financing w ill v ery probably th e n be increased, restric tin g th e possibility of refu n d in g advantageously and im pelling ta x p ayers to look m ore critically a t capi tal ex p en d itu res.” “W h eth er or n o t th e ta x exem ption featu re w ill be rem oved rem ains to be seen although, follow ing statem en ts from th e T re a su ry and d istrib u tio n of th e first taxable g o v ernm ent issue, it appears certain th a t th e effort w ill be made. W hile stu d en ts of th is ques tio n have h eretofore felt th a t any such developm ent could be achieved only by co n stitu tio n al am endm ent and th a t such serious opposition w ould develop to an y a tte m p t in th a t direction as to m ake passage dubious, th ey are now less su re of th e ir position—influenced both by p revailing new concepts of procedure in high circles and recogni tion of th e necessities of th e p re se n t rev enue situation. One probable re su lt of th e m odification, if effected, w ill be to create a sh a rp e r d istinction am ong v arious grades of m unicipal credit th a n has h eretofore been th e case. M arket prices of new issues, in o th er w ords, w ill probably reflect (T u rn to page 54, Please) 15 Consumer Credit Operations A re P r o fita b le For O ur Bank ANY b anks e n te r th e in sta ll m e n t loan field for th e purpose of m ak in g additional profits. I th in k th e profit angle has been over em phasized because in h an d lin g con sum er cred it you h andle a large n u m ber of item s and it tak es a lot of ef fo rt in o rd er to secure a volum e of loans w hich w ill b rin g in an y am o u n t of income. T hese loans, even th o u g h th ey are sm all, m u st be m ade u n d e r high cred it sta n d a rd s and good ju d g m ent. Service is p robably th e m ost im p o r ta n t reason for en te rin g th is field be cause we are in b u siness m ainly to give service and if our service is eco nom ically sound and o u r business is efficiently operated, it should be profit able and we are filling a n ecessary place in our p re se n t day com plex eco nom ic system . Our in sta llm e n t loan d ep a rtm e n ts are m ak in g m an y friends for o u r banks. More people are be com ing acquain ted w ith b an k in g and have a b e tte r idea of w h a t b an k s m ean to th is co u n try and as a re su lt should have a m uch m ore w holesom e feeling to w ard banks. T h ere is som e difference of opinion as to th e effect of w ar upon consum er credit. I t is rep o rted th a t th e b an k s in E n g lan d are h av in g difficulties w ith th e ir in stallm en t loans an d of course th a t is probably tru e of all loans. E n g lan d has a m o rato riu m u n d er w hich th e b o rro w er or th e p u rch aser is p ro tected ag ain st foreclosure. The Congress of th e U nited S tates enacted a Soldiers and Sailors R elief Act of 1940 w hich becam e a law last October 16. T his p ro tects anyone in m ilitary service on obligations existin g p rio r to th e passage of th e Act. Some of th e m ore im p o rta n t provisions ap p ly ing to in sta llm e n t credit are: M ort gaged p ro p e rty cannot be repossessed w ith o u t a co u rt action, and in such ac tion th e co u rt m ay stay th e proceed ings, m ay re q u ire th e rep ay m en t of in stallm en ts paid as a condition to th e te rm in a tio n of th e co n tract or re possession of th e property. T he rig h t of th e co u rt to ord er stay of fore closure proceedings is lim ited insofar as m otor vehicles, tra c to r or th e ac cessories of e ith e r are concerned to cases w h ere th e c o u rt finds th a t 50 M By Ray Brandt V ice President First National Bank Minot, North Dakota RAY B R A N D T p er cent or m ore of th e purchase price has been paid. W here less th a n 50 p er cent has been paid, the court m ay ord er th e plaintiff to file a bond to indem nify th e defendant against loss. A ny m odification or term in atio n of an in stallm en t co n tract or reposses sion of th e p ro p erty m ay be by m u tu al agreem ent, b u t such ag reem en t m u st be in w riting. The benefits of this Act also extend to th e sureties, g u a r an to rs or endorsers. M uch of th e re lief provided by th e Act is w ith in th e d iscretion of th e Court. W hen we consider th e actual n u m b er of m en to be d rafted into th e serv ice from an y given area d u rin g peace tim es, it w ill be sm all, a fte r e lim in a t ing th e deferred classes and th e re m ain d er to see actual service probably w ill aggregate only a sm all percentage of th e b o rrow ers in any of our in stall m en t loan d epartm ents. It does not ap p ear th a t th ere w ill be a v ery great increase in th e risk in loaning or ac cepting in stallm en t loans from m en w ith in th e d raft age. T here is addi tional risk involved b u t th e re stric tions should n ot be too severe because we should be w illing to assum e some responsibility as a p a rt of our con trib u tio n to th e N ational D efense P ro gram , and u n til th e w ar advances to a stage w here we are involved for a long period of tim e, it is h ard ly prob able th a t th ere w ill be any great am ount of loss because of borrow ers being in th e service. I th in k probably th e m ost serious question confronting us, m ore serious th a n w ar, is th e u n settled economic condition in th is co u n try and th e w orld generally. Rolf N ugent, direc to r of th e d e p artm en t of Consum er C redit Studies of th e R ussell Sage F o undation states th e effect of w ar on consum er credit to be as follows: 1. A pplications w ill probably fall off. Reason: M ore w ork and h ig h er wages; m ore po ten tial b o rrow ers in m ilitary service. 2. Less autom obile production and pleasure cars. Reason: Facilities large ly d iverted to th e service forces. 3. A lthough three-year-old cars are now considered about th e age lim it in th e average departm ent, five and six year old cars w ould becom e eligible. R eason: Increased value because of m a rk e t shortage. 4. More im providen t borrow ers. Reason: M oney comes m ore easily, and tem p tatio n is for m any people to buy luxuries. W hen em ergencies arise, th ey are com pelled to borrow . 5. People w ith fixed incom es w ill be obliged to borrow . Reason: Cost of living likely to go up. 6 . The possibility of a m o rato riu m for all m en in m ilitary service is an im p o rtan t factor to be considered. 7. Source of incom e becom es v ery im p o rtan t in a tim e like this. If th e borrow er is em ployed by a w ar in dustry, his financial statu s m ay change quickly. 8 . Co-maker p aper is m ore desirable, and one nam e should be th a t of a p e r son n ot of d ra ft age and n ot em ployed in th e sam e industry. 9. If in te re st rates go up, banks con tem p latin g en terin g th e consum er credit field w ill probably delay for a tim e. (T u rn to page 56, Please) N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January t9 b l W h o O w n s Progeny of L/VCStOCk Covered in a Chattel M ortgage? A M ichigan banker contracted w ith a real estate b ro k er th e re to sell for him certain p ro p e rty in th e City of D etroit. T he b ro k er a rra n g e d w ith an o th e r b roker, w ho rep re se n te d a purchaser, for th e sale. W ith o u t th e consent of e ith e r th e seller or th e buyer, th e b ro k ers e n tered into an agreem en t betw een th em selves to di vide th e ir com m issions. W hen the b an k e r and th e p u rc h a se r learned of th is th e y refu sed to go ahead w ith th e deal and u ltim ately com pleted it them selves. In such circum stances w ere th e b ro k ers en titled to com pensa tion? No. A n agreem en t b etw een real es tate brokers rep resen tin g different principals to sp lit or divide th eir com m ission s d ep rives the brokers of the right to com p en sation u n less both principals con sen t thereto, and th is rule applies even though th e p rin ci pals th em selv es finally conclude th e sale. E gen ette died in Iow a leaving by will all of his p ro p e rty to his w ife to have, use and control in h e r ow n rig h t as long as she rem ain ed his widow. Did she, by reason of th e provisions of th e will, receive only a life estate in th e p roperty? Yes. A d evise to a w ife of all of a testator’s property to have, u se and control in her ow n right as lon g as she rem ained th e testator’s w id ow gran ts to th e w id ow a life estate on ly and such life estate is su bject to her rem arriage. These and Other Timely Legal Questions A re Answered By the LEGAL DEPARTMENT action has expired and the title to the real estate has v ested in the holder of the certificate of sale, th e d istrict court is w ith o u t p ow er to furth er ex tend the period of redem ption. The N orth D akota Suprem e Court has so held recently. A M innesota bank had certain elec trical w ork done on its prem ises by a m a ste r electrician w hich proved to be defective. By sta tu te in th a t state such electricians are licensed and th ey are required, before plying th e ir trade, to fu rn ish a bond nam ing th e state as obligee and conditioned on th e li censee’s faith fu l and skillful perfo rm ance of his w ork. The electrician failed to m ake good th e defective w ork and th e b an k sued him and his bond ing com pany. W as such su it proper? Y es. T h e fa c t th a t th e b o n d r a n to th e sta te d id n o t m e a n th a t th e sta te Avas th e o n ly o n e th a t c o u ld su e th e r e on . I t AATas o b \Tio u s ly th e in t e n t o f th e le g isla tu r e th a t th is sh o u ld n o t b e th e c a se a n d th a t th e r ig h t to r e d r e ss sh o u ld r e s t w ith th o s e th a t are th e v ic tim s o f d e fe c tiv e Avork. A s a c o n s e q u e n c e th e s u it b y th e b a n k Avas p ro p er. T h e M in n e so ta S u p r e m e C ourt so d e cid ed r e c e n tly . in certain circum stances th e d istric t courts in N o rth D akota have pow er u n d e r th e sta tu te s to g ra n t an ex te n sion of th e period of redem p tio n in m ortgage foreclosure proceedings. Shallcross p u rch ased certain land a t a m ortgage foreclosure sale in th a t state, th e period of red em p tio n th e re o n ex pired, and th e title v ested in him as holder of th e certificate of sale. Could th e d istric t c o u rt involved extend th e period of redem ption th ereafter? A N ebraska banker ow ned a farm in th a t state. D irectly upon th e line b etw een his farm and th e adjoining farm w as a beautiful, large shade tree. In such circum stances did th e tree belong to th e banker? No. A fter th e period of redem ption in a real estate m ortgage foreclosure A storekeep er in South D akota exe cuted a ch attel m ortgage on his stock N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 No. A tree stan d in g d irectly upon th e boundary lin e betAveen adjoining OAvners so th a t th e p r o p e r ty lin e p a ss e s th r o u g h it is th e com m on property Of b o th parties. of m erchandise to his son. U nder th e m ortgage, he retain ed possession of th e m ortgaged p ro p erty and th e pow er to sell it. The sto rekeeper becam e in solvent and th e question arose of w h eth er th e m ortgage w as fraudulent. W as it frau d u len t sim ply because of th e rete n tio n of possession and th e pow er to sell? N o. T h e r e te n tio n o f th e p o s s e s s io n o f th e m o r tg a g e d p r o p e r ty a n d th e r e se r v a tio n o f th e poAver to s e ll th e p r o p e r ty do n o t, s ta n d in g a lo n e, m ean th a t th e m o r tg a g e Avas fr a u d u le n t. In su c h c ir c u m sta n c e s , th e r e is a p re su m p tio n th a t th e m o rtg a g e Avas fr a u d u le n t, b u t su c h p r e su m p tio n m a y be r e b u tte d b y a s h o w in g th a t th e m o r tg a g e tr a n s a c tio n Avas b o n a fide in a ll r e sp e c ts. B la c k in g to n executed in favor of Johnson a m ortgage on his hom e. He w as unable to m ake th e paym ents th ereo n and, to avoid a foreclosure, agreed w ith Joh n so n th a t he w ould give to him a deed to th e place. The deed w as duly executed and delivered and Joh n so n su rren d ered to Blackingto n th e m ortgage duly cancelled. Did such handling on th e p a rt of B lack ington operate to forfeit any rig h t of redem ption he m ig h t have? Y es. T h e b a sic q u e stio n in m a tte r s o f th is a c c o u n t is th e in te n tio n o f th e p a r tie s. T h e c ir c u m sta n c e th a t th e m o r tg a g e in d e b te d n e ss A\Ta s e x tin g u is h e d b y th e tr a n s a c tio n o f c o n v e y a n c e s h o w e d th a t th e equiA^alent o f a sa le Avas in te n d e d . A s a r e su lt, a n y e q u ity o f r e d e m p tio n B la c k in g to n m ig h t h a v e h a d Avas a b a n d o n ed b y h im . M o st fid e lity b o n d s req u ire th e obligee to give notice of any loss cov ered th ereb y w ith in a certain tim e afte r th e discovery of th e loss. Jackson, an em ploye of a b ank and the subject of a fidelity bond ru n n in g to it, w as observed by his su p eriors to be doing certain suspicious acts, b u t he w as n o t ap prehended in an y defalca tion u n til som etim e th ereafter. Did th e provision in th e bond req u ire th e (T u rn to page 46, Please) 17 W hat the financial Advertiser Wants to Know About Advertising E T ’S get to g e th e r on our ideas of th is sh ibboleth w hich has sw ept th e business, banking, an d in d u s tria l field—P ublic R elations. Is n ’t it ju s t w h a t it says—R elations w ith th e Public? All rig h t. F ro m th e b a n k e r’s angle, who is th e public? F irs t it’s his em ployes, as th e y are p a rt of th e public. T hen his custom ers an d finally th e g rea t m ass outside, p a rt of w hich m ay be p o ten tial custom ers. A nd th is larg er g roup m ay n ev er be custom ers, n ev erth eless th e b a n k e r has a real job an d a responsibility, not only to m ake friends, b u t to edu cate those w ho n ev er have and nev er w ill e n te r th e doors of his place of business. R em em ber, each ad u lt has a ballot an d each has a p a rt in m ak ing P ublic Opinion. Can we tak e a look a t th e job of the Public R elations m anager? I like to com pare him w ith th e old Rom an God, Jan u s. Y ou’ll rem em b er he h ad tw o faces. H is place w as over the gates of th e city and looked to th e outside an d to th e inside. T he P ublic R elations m an ag er has n ot only th e im p o rta n t job of in te r p re tin g th e b a n k to th e public b u t w h a t is ju s t as im p o rtan t, he m u st in te rp re t th e public to th e bank. How m an y tim es in p a st y ears could th e ban k ers have avoided m isu n d e rsta n d ings if th e y h ad kn o w n w h a t th e p u b lic w an ted an d how little th e y knew of w h a t service w as being offered by the bank. I have found th a t th e p u b lic is v e ry reasonable. T hey are fair. T hey are w illing to pay for w h a t th e y get—m ost of th e m do n o t w a n t c h a r ity. B ut th e y m u st be told w h a t th ey are getting. T he b a n k e rs w ill a t once th in k of th e service charge. No b ank has h ad tro u b le in estab lish in g th e service charge if th e custom er has been told in advance—in language he u n d e rsta n d s—ju s t w h y th e service charge is being installed, and w h a t th e custom er is g ettin g in th e w ay of real m oney saving service in his checking account. Scotland Y ard o peratives w ho ac com pany th e K ing an d Queen of G reat B ritain, u n lik e o u r A m erican secret service agents, spend th e ir tim e out in the crowd. L By Preston E. Reed Executive Vice President Financial A dv e rtise rs Association Ch ic ago A n address before the A d vertisin g Club of Des M oines P R E S T O N E. R E E D Is n ’t th a t the place for th e director of public relatio n s — “out in the crow d”? Too m any of us are like th e A m eri can secret agents—we like to be close to th e m ain actors. The b an k executives don’t need shadow ing—th ey need inform ation from th e crowd. M ost of them don’t need to see th e ir business from th e inside. M ost of them know that. T hey need th e o ut side view point. T hey are busy men. T hey lead a stren u o u s b u t som ew hat segregated life. The b an k er has a certain group of associates and business custom ers w hich consum e m ost of his en tire w aking h o u rs—n ot by choice b u t be cause of th e crow ding 60 m in u tes in an hour. Some are try in g to reduce th e w ork w eek to 40 hours. M ost bank execu tives are looking for a 40 hour day. Yes, th e o u tsid er’s view point is m ost essential to banking. The job of public relatio n s from th e inside has h ad an intensive and en th u siastic beginning in th e last five years. E m ploye tra in in g classes have n o t only been th e vogue b u t have been practical and productive. The subject of constructive custom er rela tions is an in terestin g study in itself. L e t’s get to th e w ork of th e Public R elations M an for th e O utside of the. bank. In brief, th is covers ad vertis ing, publicity, and sellin g. It is th e one phase of advertising w hich is m ost im p o rtan t to us today. H ere is w h at a b an k er said a few years ago w hich show s th e sp irit of good b an k advertising: “I w a n t an advertisin g cam paign th a t w ill m ake m y average em ploye feel ju s t a shade sup erio r to th e em ployes of o ther banks, and a little p rouder of his in stitu tio n th a n he ever felt before. I w an t th is cam paign as badly as any com m ercial adv ertiser w an ts an Amos and A ndy or a H ali tosis. Of course, any cam paign th a t did th a t w ould also carry a feeling of confidence and an im pression of lead ership to m y old custom ers, to my stockholders, and to th e k in d of p ro s pect I w an t to reach.” L et m e b rief some salien t points. M ost of th em should be self-evident: 1. B anking is a sacred tru st. Its en tire business is of a v ery confiden tial n atu re. A lm ost every ban k has a declaration of secrecy w hich is signed by every officer and employe. In some banks th is is done cere m oniously annually. H ere is a sam ple: 2. T he m a rk e t for b an k services covers every stra ta of h um an life w here m ore th a n a livable m inim um is earned. 3. B usiness is one of deposits and th e “renting-out” of those deposits to responsible firm s and individuals. 4. A financial ad v ertisin g m an deals in intangibles. 5. T here are few differentiated ch ar acteristics settin g one b an k off from its com petitors such as a m a n u factu rer of a product. (T u rn to page 30, Please) 'Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19M 18 How Direct M ail W ill M ake H E 14,000 b an k s of th e co u n try are urg ed to get to g eth er on a nation-w ide pro g ram of “th in k in g big” about th e ir ad v ertisin g and using local and direct m ail ad v ertisin g as a m eans of tak in g th e lead ersh ip in sell ing A m erica on sound business policy and building back to p ro sp erity by sound th in k in g and public opinion. These w ere th e sen tim en ts ex pressed by P e rry I. P ren tice, vice p resid en t of T im e , Inc., w ho addressed a recen t session of th e F in an cial Ad v ertise rs A ssociation, adding th at: “Di rect m ail could do its p a rt in m aking an d holding frien d s.” H is topic w as th e use of d irect m ail advertising. “T he reaso n w h y T im e M agazine uses two-page le tte rs and F o rtu n e M agazine uses five-page le tte rs to sell by m ail,” Mr. P ren tice told th e dele gates, “is th a t tests have show n th a t th ey sell b e tte r th a n one-page letters, and th e reaso n for th a t is th a t unless th e read er can be in te re ste d enough to continue into a long le tte r he can h ard ly be expected to be in terested enough to do $10 w o rth of 'forking o v er’ in th e case of F o rtu n e and m ore th a n a m ere dollar tria l in th e case of Tim e.” E x p lain in g th a t Tim e, Inc., sen t out 30 m illion le tte rs annually, b u t th a t all m ass m ailings w ere en tered into only afte r te sts had proved th e ir pulling pow er, w ith a dozen new ideas tested and discarded w eekly before m ass m ailing w as attem pted, Mr. P ren tice said th a t d irect m ail w as n o t to be regard ed as m erely a m ethod of selling cheaply. D irect m ail a t its best is a m ethod of m ak in g th e frien d s an d sales for w hich m agazine an d new sp ap er space ad v ertisin g should p re p a re th e w ay, Mr. P ren tice said. “W e practically gave u p u sin g our advertisin g space to m ake a direct sale of T im e y ears ago,” Mr. P ren tice explained. “T his y e a r w e are spend ing som ething like 67 p e r cent of our total profits on ad vertising, b u t th a t ad v ertisin g is n o t saying, ‘Step up here an d give us y o u r m oney for our p ro d u ct.’ W h a t we are doing w ith our ad v ertisin g is selling A m erican jou rn alism to A m erica, selling A m er ica th e im portance of tak in g an in tellig en t in te re st in th e new s, selling T N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 194Í FrißtdsFor Your Bank A m erica on th e idea th a t th e new s is th e m ost im p o rtan t th in g in th e w orld to th em as individuals, selling A m erica th a t th e only w ay th is coun try can be free is for A m ericans to tak e an in tellig en t in te re st in the new s, selling A m erica th e idea th a t it can resp ect th e press, n ot ju st Tim e, b u t all th e re st of th e press of the " A fte r all, if banks won't take the leadership in resell ing A m erica on sound busi ness policy, if the banks won't take the leadership in selling A m e rica on the im portance of the business process, if the banks won't take the leadership in selling A m erica on the im portance of banking itself, who is going to take that respon sibility?" U nited States. In th e p ast year we have sp en t over a h alf m illion dollars on new spaper and m agazine ad v ertis ing in w hich T im e itself is h ard ly m entioned. Our jo u rn alism cam paign has one and only one purpose, to re store confidence in th e A m erican press as a whole. W e hope th a t every one of A m erica’s th o u san d s of daily new s pap ers w ill profit from th is ad v ertis ing as m uch as we w ill.” The T im e vice p resid en t declared th a t A m erican business executives have becom e m ore self critical in re cent years, and w ere beginning to realize th a t changes in business as w ell as G overnm ent attitu d e tow ard business w ould be needful to b ring back responsibility. “If som eone does n ot take th e re sponsibility of selling A m erica on sound business policy and banking, and s ta rt spending some m oney to m eet th a t responsibility, I seriously question w h e th e r we are ever going to have a sound em ergence from th is depression,” Mr. P rentice, w ho is one of th e m ajor active executives of Tim e, observed. R everting to th e province of direct mail, th e Tim e executive said th a t he saw in d irect m ail th e m eans of m ak ing friends, “and it is im p o rtan t to b ankers rig h t now th a t th ey should have a gosh aw ful lot m ore friends th an th e y ’ve got now .” “It isn ’t really im p o rtan t to th e b ank th a t th e y should cash in over n ig h t on th e ir adv ertisin g and see ju st w here every dollar is com ing back,” Mr. P ren tice continued. T he th in g th a t is im p o rtan t for th e banks of A m erica is th a t th ey should change th e th in k in g of A m erica about b anking and about business as a whole. T his does n ot m ean ju s t tw o or th re e m en in W ashington, it m eans g ettin g m ore friends, m ore depositors into banks w ho believe in banks. Q uoting from th e Biblical sto ry of th e re tu rn of th e Jew s to Jeru salem from th e B abylonian captivity, Mr. P ren tice pointed out th a t “each m an re b u ilt th a t p a rt of th e w all w hich was n earest his hom e.” H e urg ed th e 14,000 banks of this co u n try to use th e ir local ad v ertisin g and direct m ail as th e m eans of build ing th e p a rt of th e w all n earest th e ir home. H e urg ed th a t th e larg er banks lead off w ith a natio n al cam paign in m agazines and new spapers, since th ey are no m ore local in stitu tio n s th a n Tim e, w hile th e sm aller banks of th e country, w ith th e aid of th e F inancial A dvertisers A ssociation and o ther skilled counsel, carried th e m essages locally. To back up such an in direct cam paign of building back to p ro sp erity by sound th in k in g and public opinion, he said d irect m ail could do its p a rt in m aking and holding friends. “The m ost im p o rtan t th in g any let te r can do, w hich is to personalize your m essage,” Mr. P ren tice said, “is to let yo u r prospective custom er see ju st w h at y o u r service can m ean to him , and to m ake sure y o u r custom ers know th a t yo u rs is a friendly service and th a t you are a friendly in stitu tio n , in terested in him. (T u rn to page 55, Please) 19 STATEMENT OF CONDITION D ecem ber 31, 1 9 4 0 R E SO U R C E S Loans and D isco u n ts..................................................................................................$16,908,895.17 Overdrafts .................................................. ................................................................... 641.57 U. S. Government O b lig a tio n s.................................................. ......................... 9,405,000.00 State and M unicipal B on d s........................................................................ 5 478 792 85 Other B onds and In v e stm en ts.............................................................................. 2 270 377.09 B anking H o u se .................................................................................................... C . . A^OOO.OO Furniture and F ix tu r e s............................................................... i nn Interest earned but not c o lle cted ........................................................................ 151,634.84 Other A s s e ts ................................................................................................................... 28,028!l5 Cash on hand and due from Federal R eserve Bank and other Corre sp o n d e n t B a n k s ...................................................................................................... 21,206 989 14 $56,199,359.81 L IA B IL IT IE S Common S to ck ........................................................................ Surplus ................................................................................... U ndivided P rofits............... ................. R eserve for C on tin gen cies................................................ R eserve for D ividend s declared and u n p a id ... R eserve for T axes, Interest, etc................................ In terest collected but not earn ed............................... D eposits ........................................................................ $ 2 ,000,000.00 1,900,000.00 242,494.14 154,671.69 30,000.00 111,512.89 20,538.78 51,740,142.31 $56,199,359.81 Member Federa l Deposit Insurance C orpo ration https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N orthw estern Banker January 19bl 20 MOfth Dakota Farm Income Hits a New High Increased W ealth and Prosperity Reflected in Annual Economic Review of G reater North Dakota Association E S ID E S th e m ere w ealth of m oney, N o rth D akotans have a g reat w ealth of “com fort th in g s”— hom es, schools, churches, m odern highw ays, autom obiles, cheap fuels, h ealth fu l clim ate, am ple food and feed. M oney w ealth and a p ro sp erity th e te rrito ry h ad not felt in y ears are show n in th e 16th a n n u al econom ic re view of th e G reater N o rth D akota A s sociation. B ut com fort things, intangibles, such as a g reatly im proved m orale, can n o t be added in colum ns. F ig u res don’t show th e im proved m orale in N o rth D akota. B ut an in creasingly optim istic outlook of its citi zen ry is reflected in th e g re a te st de sire in a g en eratio n for hom e o w n er ship, b o th u rb a n and ru ra l, th e GNDA rep o rt says. B New High Farm Income The review of 1940 show s th e h ig h est average a g ric u ltu ra l p roduction in 11 y e a rs—s ta rt of new in d u stries— new developm ent in irrig atio n , lignite coal, oil p rospecting and n a tu ra l gas —new cash crops—increased to u rist traffic—b e tte r ta x p ay m en ts and gov ern m e n ta l divisions on soun d er foot ings—a g ric u ltu ra l leadership in m any lines, w ith incom e up and debts down. N o rth D akota is on th e verge of g re a t developm ent in a dozen different fields and is offering its im m ense stores of n a tu ra l resources for u tiliza tio n in th e n atio n al defense program , th e re p o rt declares. Looking ahead to th e new y ear, th e review show s an optim istic picture. I t is in dicated th a t N o rth D akotans w ill be w ealth ier, w ill hav e m ore hom es, w ill be able to capitalize on w h a t th e y hav e learn ed in adverse tim es an d w h a t th e y have b u ilt in b e tte r tim es. 7,000 New Farm Homes “P e rh a p s m ost o u tstan d in g in de velopm ents of th e last y e a r is th e sale of 7,000 farm s to ow ner-operators in N o rth D akota,” said B. E. Groom, GNDA secretary. T he lan d m ovem ent sta rte d w ith th e good crops of 1939, Groom said. T en a n ts w an ted to ow n hom es of th e ir N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19U ow n and ow ners w anted to add to pay m en t of 10 p er cent or m ore, cover th e ir holdings. T his m ovem ent w as ing 13,390 acres,” Vogel rep o rts. Those aided and augm ented by special sales leases cover 13,390 acres, and th e to tal pro g ram s launched early in 1940 by price is $135,860. “T here are num erous o th er sales in th e F ed eral L and B ank, th e B ank of N o rth Dakota, th e state school land the process of closing,” according to d e p a rtm en t and insu ran ce com panies. Vogel. He adds, “T his has been th e B uyers kn ew th a t th e tim e for ac best y ear on state-ow ned farm s for tio n had come. F arm s w ere priced sales, re n ta l incom e and th e im proved reasonable, in te re st ra te s w ere low m orale of th e people.” E. E. Sw anston, director of th e state an d term s for pay m en t a rran g ed over long periods, and “p u rch asers are in school land d ep artm ent, rep o rts in b e tte r position to succeed th a n w ere te re st and paym ents for 1940 a t $1,048,823, as com pared w ith $834,901 for 1939 those of an earlier day.” F. W. Peck, p reid en t of th e F ederal and $762,116 for 1938. R entals and L an d B ank of St. Paul, rep o rts 1,604 o th er collections for th e d ep artm en t farm s w ere sold in N o rth D akota d u r exceed th e 1939 incom e by $249,921. D esire for u rb a n hom e ow nership is ing 1940, exclusive of Decem ber. R eal estate sales by th e b an k w ere disclosed in a stu d y of 18 N o rth Da m ore th a n double those of 1939, and kota cities, w hich issued building p e r rep resen ted th e larg est increase in m its d u rin g 1940 totalin g $3,251,129. sales of any of th e four states in w hich P riv ate building accounted for 69 p er th e b an k operates, according to R alph cent of th is total, and 576 perm its w ere L. H arm on, in form ation agent. H alf for new residences and im provem ents. The N o rth D akota to tal farm incom e th e sales w ere to people on th e land or living w ith in tw o m iles of th e pro p in 1940 w as $235,759,349, as com pared w ith an average incom e for th e five erty. B ank officials state th a t of th e 85 previous years of $173,592,820, an in p er cent sold to people living w ith in crease of 36 p er cent. 25 m iles of th e land, 16 p er cent w as Farm Income $235,759,349 sold to p re se n t occupants or ren ters. T he item ized gross farm production Cash in full w as paid for 25 p er cent of th e properties. F o r 1941 th e b an k incom e for 1940 show s benefit p ay already has leased 3,318 farm s in m ents, ad ju stm en ts for increased or decreased livestock in v en to ries and N o rth Dakota. allow s for produce consum ed on Lands Return To Tax Rolls T he B ank of N o rth D akota, as agent farm s. T he figures, p rep ared from for th e state, has sold 760 farm s, cover basic figures provided by F ed eral ing 185,670 acres, for a to tal price of S tatistician B en K ienholz, are p re $1,585,890.00, F. A. Vogel, m anager of sented by GNDA: W heat and d u ru m .......... $ 70,291,204 th e bank, reports. 7,699,360 Of th e total, th e b an k had 120 cash Oats ........................................ 8,419,200 sales covering 29,600 acres for an B arley .................................... Rye 2,932,800 aggregate price of $194,680. .................................... 5,248,800 “W here th e original ow ner has re F lax quested to repu rch ase th e land and Corn ...................................... 10,526,400 6,232,800 h as some funds w ith w hich to buy, P otatoes ................................ 7,875,850 he is given first consideration,” Vogel H ay ........................................ Sm all seeds .......................... 789,000 stated. 5,640,000 T he b an k sold 590 farm s u n d er con Beets, soy beans, honey, etc. tra c t for deed w here pay m en t of 20 $125,655,414 p er cent or m ore has been made. The Benefit paym ents .............. 22,373,000 to tal of these sales is 142,680 acres for a price of $1,255,350. $148,228,414 “F ifty leases have been m ade w ith (T u rn to page 48, Please) th e p u rchase privilege involving the 21 Like Lace, Ladders, Lard and Locomotives — M ottC y Is a Commodity OR all p ractical p u rposes business m ay be divided into tw o gen eral classifications — com m odities and service. B usiness e ith e r supplies a produ ct w hich is n o t created or m a n u factu red by th e p u rch aser, or it re n ders a service w hich th e custom er can n o t or does n o t p erfo rm for him self. In th e field of com m odities m ay be grouped all of those articles of m e r chandise w h ich people eat, w ear, or use, w h e th e r th e y be consum er goods or capital goods. Service includes those fu n ctio n s p erfo rm ed by public utilities, railw ays, life in su ran ce com panies. lau n d ries an d am usem ents; th e medical, legal an d o th e r professions; even th e b a rb e r shop an d th e b eau ty parlor. T he b a n k in g b u siness is u n iq u e in th a t it deals in b o th a com m odity and a service, fo r in th e b an k in g business m oney is n o t w ealth in th e gen erally accepted sense; it is a com m odity. It is n o t m y p urpose to discuss th e service side of banking. T he extent, v ariety an d value of b an k in g service is som eth in g w hich w e need v ery m uch to explain to th e public. R ig h t now, how ever, I do w a n t to say som e th in g about th a t com m odity handled by A m erica’s b an k s—m oney. A ctually, b an k s do n o t sell m oney, th ey re n t m oney. T h ere is no differ ence b etw een a b an k re n tin g (loaning) m oney, an d a landlord re n tin g a house, an office, or an in d u stria l building w hich costs m oney to build an d m ain tain. M oney is ju s t as m uch a com m odity, ju s t as m uch an article of trade, ju s t as m uch a tool of in d u stry an d com m erce as ra w m aterials, m achinery, and m erchandise; m ore im p o rtan t, be cause e ith e r cash or cred it is neces sary to acq u ire these b u siness req u i sites. U nique to th e b an k in g b u siness is th e fact th a t m oney m ay be loaned for only a specified tim e. T he law s of econom ics, experience an d g o v ern m en t also re s tric t th e q u a n tity of m oney w hich b an k s m ay loan. W h a t’s m ore, th e y dictate th e term s an d con ditions of b an k in g tran sactio n s. T hey fix th e financial and legal pen alties for F https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis By A . E. Bradshaw President Oklahoma Bankers Association e rro rs in judgm ent; for in ad v erten t or illegal acts; even for losses su stained th ro u g h th e failures of borrow ers, w h e th e r due to m isfortune, negli gence, or fraud. M an u facturers m ay sell all th e fin ished products th ey can m ake. M er ch an ts m ay sell all th e m erchandise th e y can handle. T ran sco n tin en tal railro ad s or city bus lines m ay hau l all th e passengers or freig h t th ey can accom m odate. T he telephone or tele g rap h com panies are lim ited only by th e capacity of th e ir facilities; and th e a te rs m ay p u t up th e “standing room only” sign. Officers of corpora tions, su p erin ten d en ts of production an d directors of sales, even individual salesm en, jeopardize th e secu rity of th e ir positions if th e ir volum e fails to reach certain quotas. B ut w ith b anks it is different. T he law p re scribes w h a t percentage of th e ir re sources banks m ay loan, and places a lim it on th e am o u n t of credit th ey m ay sell to a single custom er. I t has been only recen tly th a t even inactive stockholders of banks w ere relieved of double liability for failure. W h eth er it w as due to econom ic con ditions, negligence, m isfo rtu n e or crim inal in ten t, m ade no difference. I am n ot com plaining of th e b a n k e r’s lot. M ost of us are in th e b a n k ing business by choice. A nd afte r all, th e m oney w hich ban k s handle is not p rim a rily th e p ro p erty of th e ir of ficers, d irectors or stockholders. Most of th e funds w e handle belong to de positors. T h eir m oney m u st be safe gu ard ed and in sta n tly available should th e y call for it. T he u n fo rtu n a te th in g is th a t the disappointed prospective borrow er ra re ly recognizes and n ev er appreci ates th e reasons w hy he cannot get th e m oney he w an ts his b an k er to loan him to discount his m erchandise bills, m eet his payroll, finance his m anufac tu rin g operations or selling cam paign, buy th a t new tru ck , factory site or m achine, or pay off his m ortgage. It is, therefore, n o t sufficient m erely to deny a loan w ith an air of indifferent finality. To th e applicant it is, tem p o rarily a t least, a serious and im p o rta n t m atter. Its refu sal is a source of disappointm ent, inconvenience or em barrassm ent, perh ap s all of these, to th e person seeking a loan. He should know ju s t w h y th e loan is im practicable (unacceptable). W h at m ay be m ore im p o rtan t, perhaps, th e bank is itself en titled to th e benefit of a sensible explanation of its position. As custom ers, we expect a plausible re a son from those w ho do n ot see eye to eye w ith us on a business transaction. As bankers, then, let us exercise the good ju d g m en t and patience to explain w hy we are occasionally unable to ac cept th e p atronage of those w ho would like to do business w ith us. T he o th er fellow m ay do w h at he pleases w ith his ow n business because it belongs to him ; b u t w ith th e bank, it is different. The m oney to be loaned is n ot th e p ro p erty of th e bank. The b an k is m erely th e fiduciary agent, th e custodian of o th er people’s money. W ith to day’s sw ollen resources it m ust be ap p a re n t th a t aggressive b ankers w ould w elcom e every loan th a t com plies w ith sound b an king practices. B anking is m ore th a n a m a tte r of deposits an d savings accounts, fu rn i tu re an d fixtures. I t is, in fact, none of these. R ath er, it is a m a tte r of experience, business judgm ent, legal responsibility and personal integrity. If ban k in g m ay be described by a single w ord, I w ould say it is Confi dence. Called In a co u n try n ew spaper appeared the follow ing ad v ertisem ent: “The m an w ho picked up m y w allet in F ore S treet w as recognized. He is req u est ed to re tu rn it.” The n ex t day th is re p ly w as published: “T he recognized m an w ho picked up y o u r w allet re quests th e loser to call at any tim e and collect it.” N orthw estern B anker January 1941 22 . Soundness of Plan Soundness of Company . FAMILY SECURITY — b o th a r e p r o v i d e d b y N WN L , th r o u g h s o u n d m a n a g e m e n t a n d a f o r w a r d - l o o k i n g m e th o d o j a g e n ts 9 c o m p e n s a tio n pends alm ost en tirely on the agent. Since 1939 your N >VN L agen t has b een paid, n o t prim arily for the insurance yo u b u y , b u t for th e insurance y o u keep in force. H e is rewarded d irectly, in dollars and cen ts, for selling yo u o n ly th e kind o f insurance you need , and o n ly th e am oun t yo u can afford — and for keeping th a t insurance ad ju sted thereafter to your changing needs. H e is p a id to b uild you a sound plan, and to keep it sound. A sound com p any w ill see to its execution. T h e soundness o f a life insurance company — its a b ility to fulfill its prom ises to p olicyholders — d e pends on management. M an agem ent can be know n on ly b y its w orks. T h is com p any is in its 56th year o f stead y grow th. Since 1930, in com m on w ith all com panies, it has passed through th e m o st tryin g decade in h istory, and to d a y it is stronger than ever before. Soundness o f your life insurance plan , how ever — th e accuracy w ith w hich it fits your needs— de- FIN A N C IA L STATEM ENT December 31, 1940 A s in p a st y ea rs, th is is th e f ir s t c o m p l e t e a n d f in a l l i f e i n s u r a n c e b a l a n c e s h e e t to b e p u b lish ed . A sk y o u r b an k er, or so m e o th e r q u alified p erson , t o g iv e y o u h is o p in io n o f th e in tr in s ic sou n d n ess o f th is C o m p a n y ’s in v e stm e n t m e th o d s an d m a n a g e m en t p ractices. R ESO U R C E S C ash .............................. .....................................................................( 6.4% ) $ U . S. Governm ent Securities..................................................... (23.1% ) B onds Fu lly Guaranteed by the U . S .................................... ( 6.6% ) C anadian G overnm ent Securities.............................................( .5% ) Other Bonds: S tate, C oun ty, and M u n icipal..............................................( 3.6% ) Railroad M ortgage B on d s...................................................... ( 5.9% ) Railroad E q u ip m en ts............................................................. ( 1.0% ) Public U tility ..............................................................................(17.0% ) Ind u strial..................................................................................... (2 .2 % ) M iscellaneous..............................................................................( *3%) First M ortgage L oan s..................................................................(14.3% ) Policy L o a n s................................................................................... (1L7% ) R eal E state (Including H om e Office B uilding and R eal E state Sold Under C on tract)................................ ( 3.4% ) Prem ium s, D u e and D eferred........... ........................................( 2.6% ) Interest D u e and Accrued and Other A ssets...................... ( .8 %) L IA B IL IT IE S Reserve on Policies..........................................................................................$62,560,118 D eath Claims D ue and U n p a id ................................................................. N one Claims R eported but Proofs not R eceiv ed ............................................. 162,448 Reserve for Claims U nreported..................... 115,000 Present Value o f D ea th , D isa b ility , and Other Claims Payable in In sta lm en ts......................................................................... 4,842,085 Premiums and Interest Paid in A d v a n ce................................................ 335,597 Reserve for T axes Payable in 1 9 4 1........................................................... 290,944 Profits for D istribution to Policyholders. ............................................... 2,975,473 R eserve for Other L iabilities........................................................................ 2,913,745 Asset Fluctuation R eserve............................................................................ 918,502 5,179,465 19,172,559 5,308,261 437,747 2,872,423 4,781,064 800,097 13,755,352 1,789,211 208,941 11,535,507 9,418,224 Surplus F unds and Capital: V oluntary C ontingency R eserves.....................................$1,541,931 General Surplus..................................................................... 2,478,360 Paid-in C apital....................................................................... 1,650,000 2,771,991 2,130,395 622,966 In su ran ce in F orce $460,0 3 4 ,1 8 7 5,670,291 T O T A L ...................................................................................................$80,784,203 T O T A L .................................................................................(100% ) $80,784,203 N w N L ’s 1940 gain in insurance in force was $19,463,474 which greater than 1939’s gain. j is 44% N o r t h w e s t e r n L ife INSURANCE COMPANY O. J. A rnold, President M in n e a p o lis , M in n . T his advertisem ent, presenting N wN L ’s 56th A nnual F inancial S tatem en t, appears in T I M E , ou t Jan. 9. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19bl Things You W ill W ant to Know About Insurance Facts and Figures on Life, Fire, Casualty and Surety Coverage OWA life in su ran ce policyholders an d beneficiaries w ere paid a to tal of $34,300,000 d u rin g 1939, and w hile figures for 1940 are n o t as y et av ail able, it is quite likely th is am o u n t w as equalled or exceeded in th e y e a r ju s t past. T he above am o u n t w ould be an average of $13.44 for ev ery m an, w om an an d child in th e H aw keye state. Also, o rd in a ry life in su ran ce (ex cluding g roup in su ran ce) in force in Iow a to tals $1,465,182,000, and th a t the average policy in th e H aw keye state is $1,900. Des M oines led a h o th er cities of th e state in life in su ran ce p ay m en ts in 1939, w ith $2,935,000. O ther leaders in paym en ts w ere Sioux City, $1,470,000; D avenport, $1,130,000; Cedar R apids, $969,000; Council Bluffs, $945,000. I from tim e to tim e as occasion m ay re q uire w ith those of o thers from our ow n staff.” C onservation and fire protection w ork directed by th e n ational board d u rin g th e w orld w ar w as extrem ely effective, D auw alter said. T he board suspended its u sual en gineering activities for a period of n early tw o y ears and concentrated on recom m endations for safeguarding cantonm ents, supply depots, hospitals, naval properties, w arehouses, te rm i nals and shipyards. So w ell w as th e w ork done, he p o int ed out, th a t w hen possession of arm y can to n m ents w as delivered to those in au th o rity , fire losses am ounting to less th a n $3,000 had been su stained on con stru c tio n valued a t m ore th a n 100 m il lion dollars. ODAY, as in 1917, th e n atio n al board of fire u n d e rw rite rs is p re pared to c u rta il its u su al activ ities in o rder to devote a h of its efforts to th e natio n al defense program , F. S. Dauw alter, a ssista n t g en eral m an ag er of th e board, told m em bers of th e M ary land A ssociation of In su ra n c e A gents a t th e ir a n n u a l m eeting. “As in 1917,” th e sp eak er continued, “its offer has been accepted, an d an office h as been set up in th e co n stru c tio n division of th e w a r d ep artm en t know n as th e w a r d e p a rtm e n t advis ory b u re a u on fire pro tectio n and p re vention. “T his office is u n d e r th e direction of th re e n atio n al b o ard engineers. P lan s for a h co n stru ctio n projects u n d e r th e ju risd ictio n of th e w a r d e p a rtm e n t w ill be passed u pon by th is bureau. P roblem s of co n stru ctio n and w a te r supply are fre q u e n tly acute in m aking provisions on sh o rt notice for large co n cen tratio n s of m en. “In o rd er to deal w ith th ese p ro b lem s w ith m axim um efficiency we have arran g ed , in cooperation w ith fire in su ran ce ra tin g boards and b u reau s th ro u g h o u t th e country, to sta tion one or m ore fire p ro tectio n en gineers a t each such p ro ject w hile it is u n d e r construction. T he efforts of these engineers w ill be su pplem ented A M IL IE S and o th er beneficiaries of Iow a policyholders received an aggregate of $9,995,000 from life in su ran ce com panies in settlem en t of d eath claim s d u rin g th e first nine m o n th s of 1940, th e In stitu te of Life In su ra n ce has announced. “The im portance of th e economic and social contrib u tio n of life in su r ance to th e fam ilies and com m unities of Iow a is indicated by th e fact th a t th e funds flowing into bereaved hom es so fa r th is y ear have averaged $1,100,556 a m o n th ,” H olgar J. Johnson, p resi d en t of th e in stitu te, said. Of th e death claim benefit paym ents m ade in Iow a last year, up to Sept. 30, a to tal of $8,719,000 w as paid out on o rd in ary policies, $603,000 on group policies and $673,000 on in d u strial policies. T otal death claim benefit paym ents in th e seven w est n o rth cen tral states aggregated $59,429,000 for th e nine m onths, com prising $48,489,000 on or d in ary policies, $5,115,000 on group policies, and $5,825,000 on in d u strial policies. T he com pilation includes paym ents by A m erican life in surance com panies and p aym ents by C anadian life in su ran ce com panies on policies held in th e U nited States. T F H E N “Galloping G ertie” crashed into P uget Sound last Novem ber, she cost a group of 28 in surance com panies about th re e m illion dollars. A ccording to in surance records, th e bridge w as covered for a p ro p erty dam age of $5,200,000 and for use and occupancy up to $240,000. T he fact th a t th e tow ers and th e ir foundations m ay still be usable p re vented a possible full-coverage loss to th e com panies concerned. “G alloping G ertie” is form ally know n as th e Tacom a N arrow s bridge and w as b u ilt a t a cost of $6,400,000. A lthough she w as a b eau ty to look at, she was nev er sound stru ctu rally , an d a t th e tim e of th e crash, engineering ex p erts from th e U n iversity of W ash ington w ere studying th e bridge in tently, as w ell as a $20,000 m odel in th e u n iv ersity laboratories. The fact th a t th e re w as a consider able am o u n t of solid g ird er co nstruc tion in th e N arrow s bridge led m any construction ex perts to believe th is w as p a rtly to blam e for th e collapse. The cen ter span of “G alloping Ger tie ” w as th e th ird longest in th e w orld, and w as 200 feet above th e w aters of th e sound. W OTOR vehicle deaths last y ear w ill exceed th e 1939 total by ap proxim ately 2,000, The T rav elers In surance Com pany announced. An indicated increase of 6.18 p er cent in fatalities w ill b rin g th e 1940 figure to 34,500, g reater th a n th e to tal in 1939 or 1938 b u t still considerably u n d er th e all-tim e figure of 40,300 es tablished in 1937. Only an unprecedented rev ersal of th e year-long tre n d d u rin g th e final tw o w eeks of 1940 w ould hold th e figure u n d er 34,500, th e com pany’s statistician s said. In only one of th e last 14 m onths has th e re been a re duction in fatalities from th e sam e m onth in th e previous y ear and th a t w as in July. T h ro u g h o u t th e au tu m n m onths deaths ra n steadily ahead of th e sam e m onths in 1939 and p ro v i sional rep o rts show th is tre n d co n tin u ing in December. T he rise in fatalities exceeds not M N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19bi 24 only th e increase in m otor vehicle reg istra tio n b u t also th a t for gasoline consum ption, th u s th e d eath ra te for 1940 w ill be above th a t for 1939 w h e th e r com puted on th e basis of n u m b er of cars in use, to tal m ileage, or population. P o in tin g to th e fact th a t th e acci- d en t tre n d over a period of y ears has closely followed th e tre n d of business conditions, th e com pany’s statistician s p redicted fu rth e r increases in traffic death s for 1941 unless accident p re v en tio n agencies find m ore effective m ethods of com bating th e problem . N on-fatal in ju ries w ill also show an INCREASED ABILITY TO SERVE WELL A llie d M u tu al’s stead y, con sisten t grow th in to ta l N et P rem iu m s W ritten and in to ta l A d m itted A ssets co n tin u es to in d ica te sound, con servative m an agem en t and ever-in creasing a b ility to serve all p o licy h o ld er s at a ll tim es. N et P rem iu m s W ritten 1936 1937 1938 1939 1940 __________________ __________________ __________________ __________________ ___________________ A d m itte d A ssets 378,521 501,609 602,268 707,147 $827,134 266,954 365,247 519,090 691,487 $875,961 Y ou can d e p e n d on A llie d M utual ALLIED MUTUAL CASUALTY COMPANY H arold S. E vans, P resid en t H u b b e ll B u ild in g D es M oin es, Iow a MUTUAL SURETY COMPANY OF IOWA DES MOINES, IOWA N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 increase last y ear b u t the percentage rise, 3.22, is less th a n h alf th a t for fatalities. T he in ju ry total, it is p re dicted, w ill reach a m illion and a q u a rte r for th e second tim e in th e h isto ry of th e autom obile. P ed estrian deaths rose, b u t n o t in p ro portion to th e experience of recen t y ears w hen th ey tended to increase even m ore rap id ly th a n deaths to car occupants. The increase in such fa talities, 5.06 p er cent, w as slightly less th a n th a t for all deaths. It w as esti m ated th a t by th e end of 1940 13,100 ped estrian s w ould have been killed and 304,600 w ould have suffered nonfatal injuries. UTSTANDING im provem ents in th e h ealth of young A m ericans of d raft age, or approaching it, is in dicated by th e m o rtality records of one U nited States life in su ran ce com pany. Its w hite in d u strial policyholders— ages 15 to 24—have a death ra te only one th ird of w h a t it w as for th e cor responding age group in 1911, accord ing to com pany statisticians. T his favorable h e alth situation, it is explained, is due largely to th e p he nom enal drop in tuberculosis m or ta lity am ong th is group of young A m erican m en. T h eir d eath ra te from th is cause declined from 222 in each 100,000 in 1911, to 19 in 1939. “T hus, th e im provem ent in tu b e r culosis m o rtality has been so rap id th a t w ith in a single gen eratio n ,” the statistician s point out, “th e death ra te w as reduced to less th a n one-tenth of th e in itial value. M oreover, in 1911, about 40 p er cent of all th e deaths of adolescent and young ad u lt m ales w ere from tuberculosis; in 1939, only 11 p er cent of all deaths resu lted from th is cause.” O ther im p o rta n t factors involved in reducing th e g eneral death ra te am ong th e young A m erican w hite m ales include: A drop in th e influenza and p n eu m onia death ra te from a level of about 30 in each 100,000 in th e decade 1921 to 1929, to a low point of 10 in 1939. A su b stan tial drop du rin g th e 1911 to 1939 period in m o rtality from acci dents. A 50 p er cent reduction in th e h e a rt disease death rate. A drop in th e ty phoid death ra te from 30 in each 100,000 in 1911 to less th a n one in 1939. O H E follow ing e x tract from a gen eral b u lletin of th e Illinois B ank ers A ssociation is called to th e a tte n tion of all bankers: “In m any instances th ro u g h o u t th e State custodians of public funds, p a r ticu larly school tre a su re rs, are asking officers and directors of ban k s to as- T 25 sum e perso n al su re ty sh ip in o rd er th a t th ey can qualify for th e ir offices. U n der th e law s of Illinois it is n o t neces sary for an y indiv id u al to assum e th a t resp o n sib ility for an y public official. Illinois law s provide th a t corporate su reties m ay be secured and th e cost of th e bond charged ag ain st th e funds w hich are protected. F o r y ears th e Il linois B an k ers A ssociation, th ro u g h th e recom m endation of its com m ittees, has u rg ed th e b an k ers in th e S tate not to assum e th is p ersonal liability and because of th a t u rging, th e L egis lative C om m ittee several y e a rs ago sponsored a bill in th e L eg islatu re to m ake it possible for such su re ty bonds to be paid for out of th e funds in th e tre a su ry of th e govern in g board w hich req u ired th e su re ty bond. T he G eneral A ssem bly, upon receiving th is m eas ure, agreed th a t it w as co n tra ry to public policy fo r in dividuals to tak e over such respo n sib ilities and th e re upon passed th e bill w hich has becom e a law. U nder th ese circum stances b an k ers are u rg ed to re fe r all req u ests for perso n al su re ty to corporations w hose busin ess it is to provide such secu rity for a reaso n ab ly m odest p re m ium .” W IDOWHOOD s t r i k e s ap p ro x i m ately 400,000 w om en in th e U nited States ev ery y e a r an d leaves ap p ro x im ately 220,000 ch ild ren u n d e r age 16 w ith o u t a fa th e r’s care, accord ing to life in su ran ce statistician s. W hile th e average age of w ives at th e d eath of th e ir h u sb an d s is som e w h a t less th a n 55, it is poin ted out by statistic ia n s th a t th e m ost serious problem s of w idow hood m u st be m et by th e 100,000 new w idow s u n d e r age 45. F o r it is am ong th is group th a t th e g rea t m ajo rity of m o th ers w ith de p en d en t ch ild ren is found. M ore th a n 2,000 w ives u n d e r 20, lose th e ir h u sb an d s by d eath in th e course of a calen d ar year. In th e age group of 30 to 34 years, m ore th a n 20,000 w om en an n u ally be come w idow s, and th e n u m b er in creases in su b seq u en t age groups u n til th e m axim um is reach ed am ong w om en from 55 to 59, w h en 50,500 in those ages becom e w idow s each year. T he statistician s po in t out th a t w idow hood p re se n ts specially difficult econom ic problem s for w om en in tw o specific age groups. T he th o u san d s of orp h an ed ch ildren left to th e care of w idow s u n d e r 45 m akes th e lot of th ese w om en often a h a rd one, u n less adequate provision has been m ade for th em and th e ir children. The problem of how th e y them selves w ill be cared for confro n ts th e 100,000 IT CAN BE DONE IN '01. It is significant of the temper of Am erican Business that— "Records are made to be broken." Now what about this brand new year we are facing? Nineteen Hundred Forty was the best year Western Mutual has ever had, but through better than ever serv ice and even more helpful cooperation— with the taste of great progress achieved, whetting our appetite for ever greater success— we have set our mark high for the com ing year. W e know "It Can Be Done in 4 1 ." We d like to have you with us. A s k about our contract today. Legai Reserve Non-Assessable Fire and Auto Policies W ESTERN M UTUAL FIRE INSURANCE COMPANY D E S M O IN E S Over a Third of a Century of Safety and Service With Savings ^ N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19bl 26 w om en p ast age 65 w ho becom e w id ows every year, for as a ru le th ey are unable to provide for th e ir ow n su p port. “T H R E E -E IG H T H S of th e fatal trafI fic accidents an d a th ird of th e n o nfatal in ju ry accidents in cities oc cur on S atu rd ay s an d Sundays, ac cording to N ational Safety council records. In ru ra l areas i t ’s even w orse. Fortyfour p er cen t of th e w eek ’s ru ra l d eath to tal an d 45 p er cent of th e n o n fatal in ju ry to tal of traffic accidents occur d u rin g th e w eekend. AL STEV EN S, one of th e n a tio n ’s fam ous football coaches, adm its M football is a hazardous gam e b u t points out th a t because of traffic hazards, it is fa r m ore dangerous for spectators rid in g to a big gam e th a n for th e play ers p articip atin g on th e field. Many Gains for Northwestern National A gain of $19,463,474 in in surance in force, b ringing th e to tal to $460,034,187 as of D ecem ber 31, a sh arp gain in re new al prem ium s, and a $5,579,023 in crease in assets to a total of $80,784,203 featu re th e 56th an n u al financial sta te m en t issued by N o rth w estern N ational Life. The insurance in force gain w as 44 p er cent larg er th a n in 1939. C ontingency reserves, su rp lu s funds and capital increased by $212,373 to a to tal of $5,670,291, after adding $100,000 in excess of legal req u irem en ts, to vario u s policy reserves. “T he su b stan tial increase in in su r ance in force is especially encouraging because th e gain w as accom plished on appro xim ately th e sam e volum e of new business,” said P resid en t O. J. A rnold in com m enting on th e sta te m en t w hich has been th e first com plete and final life in su ran ce com pany b al , , L. E. Ellis Pres. H. G. Z im m e rm a n Sec. L. E. ELLIS & CO. G en era l Insuran ce • 4 6 Years In T he Iowa Field • W e W rite No Counter B usiness • R epresented In Over 1 2 0 0 Iowa Agencies 4 1 5 S ecurities Bldg. , Des M oines Iowa COMMERCIAL— MONTHLY ORGANIZATION PROTECTION HOSPITALIZATION— NON-OCCUPATIONAL BUSINESS WOMEN A W id e R ange of P o lic ie s ance sheet to be published each year since 1925.” “It th erefo re reflects con tin u ed im provem ent in p ersistency of business— a reduction in term in atio n s from lapse and su rren d er. This, I feel, resu lts from tw o things: 1940 has been a y ear of increasing em ploym ent and th erefo re of im proved w ell-being on th e p a rt of th e average fam ily. Sec ond, N w N L ’s long-range program of lapse p rev en tio n is g etting re su lts.” New business production in 1940, ex clusive of revivals and increases, am ounted to $59,705,046 as com pared w ith $57,844,015 in 1939. The increase of $19,463,474 in surance in force ex pressed as a percentage of to tal in surance outstanding, w as over 40 per cent larg er th a n th e 1940 gain for all life com panies as estim ated by th e A ssociation of Life In su ran ce P re si dents. Total prem ium collections of $10,930,964 in 1940 com pared w ith $10,630,054 in 1939. T he increase, Mr. A rnold pointed out, w as en tirely accounted for by an increase in ren ew al prem ium s, reflecting still b e tte r m aintenance of policies in force by th e ir holders. Incom e from all sources totalled $15,587,796. D eath claim paym ents to beneficia ries totalled $2,264,612 w hile paym ents to living policyholders, exclusive of policy loans, am ounted to $3,459,487. Policy loans ou tstan d in g am ounted to $9,418,224 com pared w ith $9,565,148 at th e end of 1939. H oldings of U. S. G overnm ent se curities and fully g u aran teed bonds of g overnm ent agencies totalled $24,480,820 com pared w ith $24,313,613 a y ear ago. F irs t m ortgage loans increased du rin g th e y ear from $7,292,650 to $11,535,507. T he increase w as due to ex pansion in th e com pany’s holdings of FH A in su red loans on city homes. T he cash item stood a t $5,179,465 com p ared to $4,474,631 th e previous year. Real estate owned, w hich includes sold u n d er contract, decreased from th e hom e office building and real estate $2,882,675 to $2,771,991 w hich is 3.4 p er cent of to tal assets com pared w ith 6.7 per cent estim ated for th e life in su r ance business as a whole. w ith u n u su al featu res. W rite for C o m p lete D etails T oday. m Inter-State Business Men’s Accident Company A M u tu a l L e g a l R e s e r v e I n c o m e P r o te c tio n C o m p a n y O rgan ized in 1908 R o b ert A. B row n , P resid en t N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^1 D es M oin es, Iow a Premiums Increase Over Forty-six Per Cent The M utual S u rety Com pany of Iowa, Des Moines, had an increase in prem ium s of over 46 p er cent d uring th e p ast tw elve m onths. T his indicates a v ery su b stan tial g ro w th in th is w ell know n Iow a in stitu tio n and reflects a g reat deal of credit upon th e officers, w ho are: R us sell F Lundy, president; D. S. P eter, vice president; E. L. Lundy, secretary and E. J. Sathe, a ssista n t secretary. 27 T he com pany w rite s only F id elity and S u rety Bonds and has specialized The 1930s... 10 years STEADY PROGRESS for HAWKEYE T otal A ssets R U S S E L L F. L U N D Y in P ro b ate Bonds alth o u g h all types of business are w ritten . John W . Gunn Heads Employers Mutual Casualty Jo h n A Gunn, p resid en t of th e E m ployers M utual C asualty Co. of Des M oines since it w as organized in 1911, last m o n th announced his resig n atio n at th e q u a rte rly m eeting of th e board of directors. G unn w as elected ch airm an of the board and w ill rem ain as tre a su re r. He w as one of th e founders of th e com pany. Jo h n W. G unn, vice president, w as elected to th e p residency to succeed his fath er. Jo h n F. H ynes, secretary, w as nam ed vice president, and re ta in s th e office of secretary. A re p o rt on business of th e com pany for th e first 11 m o n th s of 1940 show ed a gain in prem iu m s of $181,433. Oc tob er b u siness show ed th e biggest gains of an y m o n th for 1940, and w as th e biggest O ctober in th e h isto ry of th e com pany, G unn reported. P re m i um s to taled $271,100, a gain of m ore th a n $50,000 in p rem iu m s over Oc tober, 1939, officials said. The com pany’s hom e office bu ild ing is located at 204-210 S eventh Street. T he com pany operates in 13 states and w rite s autom obile, gen eral lia b ility and plate glass in su ran ce and w o rk m en ’s com pensation. Ouch! C ustom er: “H ave you a book called ‘Man, th e M aster’?” Salesgirl: “F ictio n d e p a rtm e n t on th e o th e r side, sir.” 1930.......... $ 616,000 714,000 1935 1940................ 1,310,000 B usiness w ritten in year 1930 1935 .......... $ 331,000 407,000 1940............ .... 906,000 Surplus to P olicyh olders 1930 1935 $ 345,000 384,000 1940 .............. 500,000 HAWK£Y€ CASUALTY COmPAny oes m o in es, io iu a F u ll c o v e r a g e a u to m o b ile , w o r k m e n ’s c o m p e n s a t io n , g e n e r a l lia b ilit y , b u r g la r y in s u r a n c e . N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^1 28 No. X of a Series THE THREE Rs ...a n d U ie fcMMZ ßcm Jeesi P u b lic ed u ca tio n is on e o f th e m ost im A very large p art of th e finan cing of our p ortan t o f our d em ocratic processes. sta te’s p u b lic sch o o l d ev elo p m en t p ro gram has b een carried on b y th e In v est m en t B a n k in g in terests o f Iow a, th rou gh Iow a, w ith h er en v ia b le rep u ta tio n o f h a v th e u n d erw ritin g and d istrib u tin g o f in in g th e h ig h e st p ercen tage o f lite ra te p e o n u m era b le issues o f sch o o l bonds. p le o f any state in th e U n ion , has b een alert to, and p rogressive in , k eep in g h er T od ay— h u n d red s o f th ou san d s o f Iow a p u b lic sch ools abreast o f ra p id ly ch a n g y o u th s are receiv in g th e b en efits o f a free in g tim es and ed u ca tio n a l id eas. ed u ca tio n in th e stim u la tin g and h e a lth fu l en v iro n m en t o f p lea sa n t and m odern lyeq u ip p ed p u b lic sch o o l b u ild in g s. D u rin g th e p ast d ecad e and a h a lf, Iow a has sp en t m illio n s in im p ro v in g and en T h e In v estm en t B an kers o f Iow a are rig h t larg in g p u b lic sch o o l structures— in th e fu lly p rou d o f th e im p o rta n t ro le th e y have con stru ction o f n ew p u b lic sc h o o l b u ild p la y ed in p ro v id in g Iow a y o u th w ith sch o o l in gs— con so lid a ted sch ools, grade schools, b u ild in g s ju n io r and sen ior h ig h schools. su rpassed a n yw h ere in our broad n ation . and e q u ip m en t th a t are n ot Iowa Investment Hankers Association N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^1 29 The Months Market Maneuvers In 1940 stock s de clined, but bonds rose to r e c o r d h igh s. T hat sta te m en t w h ile true seem s an over-sim plification of a year in w h ich crisis fo l low ed c r i s i s in w orld affairs. Cer JA M E S H . CLAR KE tain ly at no tim e in the past ten years have the m arkets faced m ore u n certain ties. A nd faced them w ith o u t h eiu g ex c essiv ely d is turbed. In E urope and A sia there w ere periods w h en all w as chaos. A t hom e the m arkets w ere confronted w ith al m ost u n b elievab ly bad n ew s. R ussia and F in lan d fou gh t a w ar—alm ost forgotten now . H itler took over D en m ark and beat the A llies to capture N orw ay. H olland and B elgiu m fell q uickly under the N azi assau lt—but the g reatest b low of all w as the col lapse of F ran ce—M aginot lin e and all. Ita ly decided all w as over and entered the w ar, but u nd erestim ated E ngland. G erm any poured bom bs on London and in du strial E n glan d —w h ile the R. A. F. retaliated. R u ssia seized part of R um ania—H u ngary grabbed even m ore—and th ou san d s of Germ an troops cam e in w h ile K in g Carol fled. G erm any scored additional “diplo m atic triu m p h s” but Ita ly suffered sta ggerin g d efeats in h er attem p ts to in vade Greece and E gyp t. T h ese are but b rief sk etch es of E uropean n ew s flashes. A n d there w ere dom estic consider ations th a t affected our m a rk e ts—'par ticularly fo r com m on stocks. Gold continued to pour in— E ngland liqui dated m a n y of her U nited S tates hold ings— Secretary H u ll w arned Japan. F ro m Ju n e th ro u g h the first w e e k of N o vem b er w e w ere in the m id st of the h o tte st political fig h t in years— and the stock m a rk e t’s favo rite lost. Corpo rate earnings im p ro ved — a great de fense program w as launched—na tio n al incom e rose. B u t taxes also in creased and th e outlook w as fo r even larger increases— and this w orried in vestors. So th e stock m a rk e t eased dow nw ard. In 1940 th e re w ere som ew hat b e tte r th a n tw o h u n d re d m illion sh ares of stock tra d e d on th e N ew Y ork Stock Exchange. T he sm allest n u m b er since 1921. In 1929 over a billion w ere bought and sold. Seats on th e Ex- Preparedf for The Northwestern Banker By Jam es H . C larke As sist ant Vice President American National Bank & Trust Co. Ch ic ago change w ere on th e barg ain counter— one sold for $32,000, th e low est in forty-one years. In 1929 one sold for $625,000. May 21 saw th e h eaviest day of tra d in g for th e year, 3,940,000 sh ares—also a b reak of about eight points on bad new s from abroad. The sm allest day of trad in g w as A ugust 19—129,650 sh ares—th e lightest since A ugust 7, 1916. T he Dow-Jones a v e r age for in d u strial stocks, w hich w as 151.43 on J a n u a ry 2, closed th e y ear a t 130.13, a loss of over tw en ty points. T he high p o int of 153 w as reached early in Ja n u a ry —th e low point of ab o u t 111 on Ju n e 10 ju s t before th e full collapse of F rance. T h at th e stock b ro k ers for th e m ost p a rt had an u n profitable y ear is ap parent. AVhile stock p rices w ere d eclining, bond le v els w ere risin g to h eig h ts con sidered im possible a year or tw o ago. The lon g G overnm ents—for exam ple, the 2 %’s of 1965, w ere quoted at 106.15 as th e year began— dropped to 103.16 w h en F rance fell—b ut rallied to close the year at 111.2 to yield 2.17. The high of 111.23 on th ese bonds w as set early in D ecem ber. B u t state and various m un icipal bonds exceeded all other cla sses by a w id e m argin. For in stance, the city of R ichm ond, V ir gin ia, recen tly sold som e 1 per cent Public Im p rovem en t B onds w ith the first m aturity in 1942 priced to yield but .10 p er cen t and th e final m aturity in 1961 to yield on ly 1.30 per cent. N ew York state also did w ell in g et tin g cheap m oney w h en it sold $25,000,000 of 11/4’s due seria lly from D e cem ber 1941 to 1980. The first m atu rity w as priced to yield .15 per cent— the la st one to y ield 1.55. In short, forty-year m oney at a little b etter than one and one-half per cent. Tax exem p tions, natu rally, aided in m aking th ese prices high. Corporations also borrowed m oney at low rates during the year. B oston E dison C om pany sold 2 %’s due in 1970 at 105 to yield a bit better than 2.50% and fu lly taxable, of course. D etroit E dison sold th ir ty year 3’s at 107% w hile D ow Chemical sold serial deben tures due 1941 to 1950 on a .35% to 2.05% basis. These are but a fe w exam ples— there w ere num erous others— as a plethora of fu n d s forced rates low er and lower. A fter th is brief and inadequate re view of th e y ear—let us tak e a look a t th e m onth of Decem ber. F o r a fter all th a t is th e real purpose of th is article. Changes in th e stock m a rk e t w ere u n im p o rtan t du rin g th e m o n th —th e Dow Jones average for in d u strial stocks being 131 on N ovem ber 29 and 131.13 on D ecem ber 31. Volum e of trad in g w as sm all w ith b u t th re e days in w hich shares bought and sold ex ceeded one m illion. In all th ere w ere tw enty-five days of trad in g —advances w ere reg istered fo u rteen tim es and declines eleven—b u t th e n et change m eaningless. B onds w ere h ig h er in Decem ber. The G overnm ent 2 %’s of 1965 Avere 110.7 as N ovem ber closed and 111.2 on D ecem ber 31. Today (January 2) th ey have dropped to around 110.10 fo llo w in g the report of officials of the Fed recom m ending in creases in hank re serve requirem ents. W ith bonds reach in g neAV h ig h s in D ecem ber and Avith y ield s approaching the A-anishin g point, m ore th ou gh t is b ein g given to the situ ation . It is natural for the financial com m un ity to Avonder if th is situ a tio n com pares in som e Avays Avith the stock m arket in A ugu st, 1929. T here Avere n um erous corporate o f ferin gs in D ecem ber—m ostly refund in gs. A ppalachian E lectric PoAver sold $70,000,000 3%’s of 1970 at 107 and despite th e m atu rity and the high price th ey Avent Avell. B oston Edison offered $53,000,000 2 %’s of 1970 at 105 —the reception b ein g on ly fair. $50,000,000 D etroit E d ison 3’s of 1970 Avere priced at 107% and the bid i io a a t is around that price. In addition there Avere offerings of $8,000,000 of Elec000,000 N ational D airy P roducts detric A uto-Lite deb. 2 %’s of 1950, $70,b entures, $6,500,000 P ittsb u rgh S teel 4^4’s o f 1950 and $15,000,000 Crucible S teel C om pany 3% debentures. There probably w ill be a lot of fi nancing in January. Companies w hich already have registered offerings in clude P hillips P etroleum , MontanaD akota U tilities, P anhandle E a stern Pipe L in e and Sou th ern C ounties Gas Company. Illinois B ell Telephone also N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1951 is expected to sell bonds th is m o n th as is Shell Union Oil, Public Service of Oklahoma and possibly R epublic Steel Company. B usiness operated at a high rate in D ecem ber— at capacity in num ero u s instances. Indications are th a t this w ill continue fo r som e tim e u n d er the pressure of w ar orders and increased dom estic purchasing power. The treas u ry faces financing problem s as de fense costs m o u n t w hile Congress w ill w restle w ith m a n y problem s, n o t the least of w h ich is the tax question. T hus w e begin 1941 w ith but fe w of the u n certainties of the past year solved and w ith m a n y n ew ones before us. Convention Calendar N a tio n a l and S ectio n a l F ebruary 4-6: A. B. A. M id-W inter T ru st Conference, W aldorf-A storia H otel, N ew Y ork City. March 5-7: A. B. A. Regional Confer ence, W aldorf-A storia H otel, New Y ork City. March 20-21: A. B. A. Regional Confer ence, B row n Hotel, Louisville, K entucky. A pril 18-19: E a ste rn Regional Confer ence N ational A ssociation of B ank A uditors and C om ptrollers, Bos ton. A pril 27-30: A. B. A. E xecutive Council Spring M eeting, The H om estead, H ot Springs, V irginia. May 4-7: A ssociation of R eserve City B ankers, H otel H ershey, H ershey, P ennsylvania. May 16-17: M id-Continent R egional C onference N ational A ssociation of B ank A uditors and C om ptrol lers, Cleveland. May 22-24: N ational Safe D eposit As sociation, H otel S tatler, Buffalo, N ew York. June 2-6: A m erican In stitu te of B an k ing, St. F ran cis H otel, San F ra n cisco, California. S eptem ber 28-October 2: A m erican B ankers A ssociation, H otel Stev ens, Chicago. October 8, 9,10,11: A nnual Convention N ational A ssociation of B ank A u ditors and C om ptrollers, Chicago. State January 21-22: W isconsin M id-W inter GENERAL MOTORS T ACCEPTANCE CORPORAT I ON is engaged primarily in facilitating wholesale distribution and retail sales of the following products of General M otors Corporation and its world-wide affiliates: CADILLAC, BUICK, OLDSMOBILE, PONTIAC, CHEVROLET automobiles; f r i g i d a i r e appliances for refrigeration and air conditioning; d e l c o lighting, power and heating equipment; GMC trucks; BEDFORD, v a u x h a l l and other foreign made automotive vehicles. The business consists of investments in self-liquidating credits, widely diversified as to region and enterprise, capital employed being in excess of $80,000,000. In obtaining short term accommodation, g m a c issues one standard form of note. This obligation it offers to banks and institutions, in convenient maturities and denominations at current discount rates. GENERAL MOTORS Conference, H otel Pfister, M ilw au kee. January 21-23: M issouri B ankers Con ference (second), U n iversity of M issouri, Columbia. January 30: Illinois M id-W inter T ru st Conference, Chicago. F ebruary 21: Ohio M id-W inter Meet, Columbus. May 8-10: Oklahoma, S kirvin H otel, O klahom a City. May 12-14: M issouri, E lm s Hotel, E x celsior Springs. May 14-15: Indiana, Claypool H otel, Indianapolis. May 15-16: K ansas, K ansas City. May 21-23: Texas, H ouston. May 26-28: Illinois Golden Jubilee, P alm er House, Chicago. June 4-5: W isconsin, H otel Schroeder, M ilwaukee. June 16-17: Idaho, Sun Valley. Ju n e 17-18: N o rth Dakota, H otel P a t terson, B ism arck. June 20-21: M ontana, New F lorence H otel, Missoula. Ju n e 26-27: South D akota, H otel F ra n k lin, Deadwood. Ju ne 26-28: M ichigan, G rand H otel, M ackinac Island. W H A T F IN A N C IA L ADVERTISERS W A N T TO KN O W INSTALMENT P LA N (C ontinued from page 17) 6 . T here are no w holesalers or job These notes are available, in limited amounts, upon request. EXECUTIVE OFFICE N E W YORK N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BRANCHES IN PRINCIPAL CITIES January 19kt bers (m iddelm en) in th e b anking field. 7. T here is no such th in g as com m ercial ad v ertisers know as rep eat orders or quick tu rn o v er. 8 . M en and w om en do n ot m ake b an k connections every day or w eek or year. Y our custom ers m ay buy tobacco, groceries every day; a su it of 31 for its conservatism and tru th fu ln ess; Out of th e b a n k ’s to tal budget: clothes ev ery four m onths, and a new for its “confidence” in ad v ertisin g N ew spaper ................................ 51% car every y e a r or tw o—you hope. building. Some day th e com m ercial 9. A d e p a rtm e n t sto re p u ts on spe R adio ...............................................7% ad v ertiser m ight find him self studying cial sales (im agine, come in and look D irect M a i l .................................. 23% financial advertising. over o u r new co nsignm ent of b ran d O utdoor A d v e rtisin g ...................3% A dvertising is pow erful. new dollar bills. F re s h from th e S treet Car A dvertising . 2% I t has b u ilt Am erica. press. Our b u y ers w ere fo rtu n a te to T rade P ap ers .......................... 6% A dvertising, like flowing w ater, be able to b u y o u t an e n tire p rin tin g W indow D isp lay s.................... 2% cleanses itself. If you w an t to kill a p la n t’s m ass p ro d u ctio n a t a special S pecialty A dvertising 5% poor product—advertise it. price). D ep artm en t sto res delig h t in N ational M agazines .................1% crowds. See th e goods, h andle th e goods, drive it yourself, double y o u r F in an cial ad v ertisin g holds a chal That's It m oney back if you are n o t m ore th a n lenge. To a red-blooded fighter w ith “Did you h ear about th e m an w ho delighted. B anks do not w a n t crowds. T h a t’s w h y one large b an k has im agination, w ho w ill u n d erstan d the d ra n k gasoline for w h iskey?” “No.” stressed, th ro u g h direct m ail to its in stitu tio n and know its policies, th ere “Now, instead of hicking, he honks.” custom ers, th e advan tag es of “B an k is a real field for battle. “Oh, auto-intoxication!” B ank advertisin g has set a stan d ard ing by M ail.” 10. In a b an k a custom er (to use m an y of th e services) m u st qualify as to c h a ra c ter and responsibility. In th e com m ercial field, if he has th e cash to pay, th a t’s all th a t’s neces sary. Because of th is c h a ra c ter de m and, th e a d v ertisin g is pitched h ig h e r so th a t som e selectivity is h ad before th e pro sp ect comes to th e bank. 11. In a b a n k a custo m er m u st con form to reg u latio n s laid dow n by law. 12. A com m ercial a d v e rtise r has th e w hole g am u t of h u m an em otions to Dubuque, Iowa play u p o n in selling his goods. B ank ers have only a few; such as love of offspring, am bition, p ro tectio n of others, econom y in leaving p ro p e rty to others, independence. All of th ese have an elem ent encouraging p ro cras T im e P aym en t Plans for Purchasers of tination. 13. To m easu re th e effectiveness of A u tom obiles and H ousehold A p plian ces financial a d v ertisin g is alm ost im pos sible. It is continued on confidence m u » alone. N ow th e re are tw o questions w hich I am su re m ig h t w a n t to be asked. T hese tw o questions are alw ays asked. T hey come to m y office y e a r in and ■ * H y ea r out. F ro m th e a d v ertisin g agen cies an d b an k s—from th e larg est to th e sm allest. 1. H ow m uch should a b an k spend on its advertising? T he an sw er is— th a t all depends. 2. W h a t a d v ertisin g m edia is th e Capital, Surplus and Undivided Profits b est fo r banks? T he an sw er is—th a t all depends on w h a t th e b a n k w an ts Exceed One Million Dollars to do. H ere is a re p o rt of w h a t m edia th e b an k s used th is last year: ■ HI ■ Federal Discount Corporation A utom obile Finance SMALL LOANS Iowa BRANCHES IN Minnesota Wisconsin Short Term C o lla te r a l T r u s t N o tes ■ a s Information on Request N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19bl 32 IO W A COMMERCIAL Investment Bankers INVESTMENT Association TRUST IN C O R P O R A T E D W ALTER E. V IE T H President Davenport Commercial I nvestment T rust Incorporated, with capital and surplus in excess of $56,000,000, provides a nation-wide sales finance service through subsidiary companies with a network of branch offices throughout the United States. This service, in the main, consists of p u r c h a s in g self-liqui dating accounts, and ex tends to automobile dealers, household appliance dealers, and to m anufacturers and dealers in many lines of in dustrial, commercial and professional equipment, in cluding the heavy goods in dustries. C. I. T . offers its stand ard notes for short term accommodation in varying am ou n ts from $1,000 to $100,000, in maturities from 60 to 270 days and at cur rent discount rates. T h ese notes are payable at any of our 296 depositary banks located in principal cities throughout the country. L a te st published fin a n c ia l Organized 1935 ROY W. LER IC H E Secretary Des Moines Announce Annual Meeting A S announced last m onth, th e 1941 ing. T he com m ittee announced th a t / \ a n n u al m eeting of th e Iow a In reserv atio n s are necessary for all the v estm en t B ankers A ssociation w ill be functions of th e m eeting. held in Cedar Rapids, and th e dates You m ay be su re th a t m em bers of have been definitely set as T hu rsd ay th e A ssociation in Cedar R apids are and F riday, Ja n u a ry 23 and 24. going th e lim it to show all those w ho R eg istration w ill s ta rt on T hursday, atte n d a royal good tim e. Y our a t th e 23rd, a t 5:00 p. m., on th e m ezza tendance w ill be evidence of y o u r ap nin e floor of th e H otel Roosevelt, con preciation of th e ir efforts. v en tio n head q u arters. A cocktail Two Des M oines m em bers of th e p a rty sta rts a t 5:30 and th e d in n er th a t Iow a A ssociation have been honored evening w ill tak e place at 7:30. by ap pointm ents in an ad m in istrativ e capacity w ith th e N ational A ssociation On F rid a y m orning, th e 24th, th e a n n u al business m eeting and election of S ecurity D ealers, Inc. Jam es A. of officers w ill be held a t 10:30 in th e Cum m ins has been nam ed a m em ber L incoln Room, to be followed by of th e B usiness Conduct Comm ittee, luncheon a t 12:30. S peakers of n a for Iowa, and M. D. D earth has been elected a m em ber of th e eig h th dis tio n al prom inence w ill address the m eeting im m ediately follow ing th e tric t com m ittee of NASD. T his dis luncheon, and w ill continue th ro u g h tric t com prises th e States of Iowa, N e th e afternoon. The sessions w ill con braska, Illinois, Indiana, M ichigan, clude w ith an o th e r social hour, and and W isconsin. din n er, th a t sam e evening. F ra n k F ilip of Cedar R apids is gen Northern Trust, Chicago eral ch airm an for th e occasion, as T he N o rth ern T ru st Com pany of sisted by o th er in v estm en t b an k ers Chicago on J a n u a ry 2, 1941, paid its located there. E d w ard H. K ane of 172d q u a rte rly dividend, declared De Cedar R apids is tak in g care of re se r cem ber 17, 1940. In its an n u al sta te vations, and it is u rged th a t advance m en t dated D ecem ber 31,1940, deposits re serv atio n s be m ade w ith him . His of $397,000,000 are show n, a g ro w th of address is 1010 A m erican T ru st Build- $28,000,000 du rin g th e year. Loans V. W. B M r e w e r u n ic ip a l B C o . o n d s statement and list o f depositary banks w ill be mailed upon request. A D DRESS Treasurer, Commercial Investment Trust Incorporated 1 P a rk A ve., N e w York, N . Y. N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19M The Level Debt Service Refunding Plan of the Independent School District of the City of Des Moines is sixty percent completed. F IR S T N A T - S O O L IN E B L D G . MINNEAPOLIS 33 w ere u p $6,300,000 to $44,500,000. Cash reso u rces w ere $162,000,000, an in crease of $2,000,000 over th e la st y e a r’s figures. Savings deposits increased $2,500,000 to an all tim e h ig h of $82,600,000. U nited States g o v ern m en t se cu rities stood a t $110,000,000. E a rn in g s of The N o rth e rn T ru st Com pany in 1940 w ere $912,306.42, or $30.41 p er sh are com pared w ith $906,914.27, or $30.23 p er sh are in 1939. Quarterly Dividend T he b oard of d irecto rs of M anufac tu re rs T ru s t Com pany, N ew York, de clared th e re g u la r q u a rte rly dividend of 50 cents p e r sh are on th e com m on stock, payable on J a n u a ry 2, 1941, to stockholders of record on D ecem ber 12, 1940. T he board also declared th e re g u la r q u a rte rly dividend of 50 cents p er share on th e p re fe rred stock, payable J a n u a ry 15, 1941, to stockholders of record on D ecem ber 30, 1940. Revised Manual A revised m an u al of law s relatin g to loans and in v estm en ts by natio n al ban k s h as been p rep ared by th e N a tio n al B ank D ivision of th e A m erican B an k ers A ssociation and h as been fo r w ard ed to th e n atio n al b an k m em b er ship, it is an nounced by A ndrew Price, th e D ivision’s president, w ho is p re si den t of th e N ational B ank of Com m erce, Seattle, W ashington. “T he revised edition of th e D ivision’s m an u al h as been m ade in accordance w ith th e association’s policy of keep ing its m em bership inform ed on th e con stan tly changing developm ents in b an k in g ,” Mr. P rice asserted. “New law s g o verning th e lending an d in v e st m e n t policies of n atio n al b an k s have been enacted an d fo rm er sta tu te s have been am ended or am plified. I t is, of course, v ita l th a t b an k s keep ab re a st of th ese changes.” T he rev ised m an u al includes re c e n t ly enacted defense m easures, such as th e A ssignm ent of Claims A ct of 1940, p e rm ittin g th e assig n m en t of claim s u n d e r g o v ern m en t co n tracts as secu rity for loans, and th e Soldiers and Sailors Civil R elief Act of 1940, im pos ing a m o rato riu m on th e debts of m en serv in g in th e n a tio n ’s arm ed forces. Insurance Digest P u b licatio n of a new digest of b an k insu ran ce designed to help b an k s re view an d im prove th e ir in su ran ce cov erage is an nounced b y Jam es E. Baum , se c re ta ry of th e In su ran ce and P ro tec tive C om m ittee of th e A m erican B an k ers A ssociation. It is expected to be read y for d istrib u tio n th is m onth. T he digest w ill contain: 1. A condensed schedule of insur- ance contracts designed to cover risk s p eculiar to banking, and o th er form s to give banks a broad pictu re of the n u m erous in su ran ce form s now avail able and guide th em in ap p raising the relativ e im portance of th e different coverages. 2. A nalyses of b lan k et bonds, fidelity bonds, b u rglary, robbery, forgery and o th e r coverages chiefly applicable to banks. 3. B rief descriptions of o th er con tracts, outlining coverages th a t apply not only to banking, b u t also to o th er lines of business. 4. Com m ents on in su ran ce essential in h an d lin g personal tru s ts and estates and corporate trusteesh ip s, w hich are im p o rtan t functions in m an y banks. 5. O utline of custom ers in su ran ce p ertain in g to com m ercial loans, com m odity and consum er loans, security tran sactions, depositors forgery risks, etc. The new digest w ill contain m ore th a n 130 pages and w ill provide an upto-the-m inute analysis of insurance protection. In m aking th e announce m ent, th e In su ran ce and P rotective Com m ittee an ticip ates th a t th e digest “w ill stim ulate b a n k e rs’ in te re st in th e ir insurance, an d lead to a review and b e tte r know ledge of th e ir in stitu tio n s’ protective program s,” and “th a t III The IN TER STA TE FIN AN CE CORPORATION«< Dubuque, Iowa . . . the "15 Year Record" of this rapidly growing corporation has just recently come off the press, and is available to any bank or institution upon reguest. This complete history shows the reasons and proof of Inter state's rise in Automobile Financing. The "Economy Plan" of automobile financing, which offers rates as low as $3.00 per $100 per year, is featured by established automobile dealers in Iowa, Wisconsin, Minnesota, and Illinois. One standard form of note is issued for all short term accommodations. This obligation is held by leading banks and institutions and is offered in convenient maturities and denom inations at current discount rates. Prompt reply and complete informa tion to all inquirers. Address your request to . . . IN T E R S T A T E HOME OFFICE F IN A N C E C O R P O R A T IO N . . . DUBUQUE, IOW A N orth w estern B ank er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 1 9 47 34 it w ill co n trib u te to w ard reducing po ten tia l risk s to a m inim um and tow ard im proving in su ran ce p ro tectio n .” Copies w ill be available from th e In suran ce an d P ro tectiv e D ep artm en t of the A m erican B an k ers A ssociation a t 22 E a st 40th Street, N ew Y ork City, a t $1.50 each in stitc h binding, or $2.00 in loose-leaf binding. Dividend T he b oard of d irecto rs of The F irs t N ational B ank of Chicago a t a m eeting last m o n th declared a q u a rte rly divi dend of $2.50 p er sh are on th e capital stock of th e bank, increasin g th e a n n u al ra te from $8 to $10 p er share. The directo rs also tra n sfe rre d $5,000,000 from undivided profits to su rp lu s m ak ing it $40,000,000. T he capital stock of th e b ank rem ains a t $30,000,000. T he dividend w as payable Ja n u a ry 1, 1941, to stockholders of record D ecem ber 23, 1940. Chase National The statem en t of th e Chase N ational B ank for D ecem ber 31, 1940, w as m ade public J a n u a ry 3, 1941. T he deposits of th e b ank on th a t date w ere $3,543,338,000, th e larg est deposit figure y et rep o rted by th e bank, w hich com pares w ith $3,251,342,000 on Septem ber 30, 1940, and $2,803,730,000 on D ecem ber 30, 1939. T otal resources am ounted to $3,824,- 403.000 (also th e larg est in th e b a n k ’s h istory) com pared w ith $3,522,990,000 on Septem ber 30th, and $3,085,819,000 a y e a r ago. Cash in th e b a n k ’s v aults and on deposit w ith th e F ed eral Re serve B ank and o th er banks, $1,672,535.000 com pared w ith $1,440,940,000 and $1,293,143,000 on th e respective dates; inv estm en ts in U nited States go v ern m en t securities, $1,098,108,000 com pared w ith $1,045,425,000 and $820,170,000; loans and discounts, $664,189,000 com pared w ith $625,579,000 and $636,176,000. On D ecem ber 31, 1940, th e capital of th e ban k w as $100,270,000 and th e s u r plus $100,270,000, both am ounts u n changed. A fter declaration on Decem b er 26th of a sem i-annual dividend to be paid F e b ru a ry 1st am o u n tin g to $5,180,000, th e undivided profits ac count on D ecem ber 31st am ounted to $36,212,000. T his am o u n t com pares w ith $36,535,000 on Septem ber 30, 1940, and $33,022,000 on D ecem ber 30, 1939. T he n e t earn in g s of th e Chase N a tional B ank for th e y ear 1940 am ounted to $13,550,000, or $1.83 p er share, com p ared w ith $13,315,000, or $1.80 per share, in 1939. Dividend A t a special m eeting of th e board of directors of th e W isconsin B ankshares C orporation held last m onth, a divi dend of 25c a sh are w as declared, pay able Decem ber 27th to stockholders of record D ecem ber 12th. Two Directors W illiam C. P o tter, ch airm an of the board of th e G u aranty T ru st Com pany of New York, announces th a t T hom as J. W atson an d M atthew T. M urray, Jr., have been elected directors of th e com pany. Mr. W atson has been p resid en t of th e In te rn a tio n a l B usiness M achines C orporation since 1914, and although th a t association co n stitu tes his chief business in terest, he has for m any y ears been w idely connected w ith or ganizations in th e fields of in te rn a tional relations, foreign trade, g overn m ent, education, and p h ilanthropy. He served as a d irector of th e F ed eral Re serve B ank of New Y ork from Ja n u a ry 1, 1938, u n til th e close of 1940. Mr. M u rray is secretary and resid en t atto rn e y of th e G u aran ty T ru st Com pany. He has been associated w ith th e b an k for 36 years, and previously served as a m em ber of th e board of directors d u rin g 1939. Bare Truth Girls w hen th ey w en t for a swim, Once dressed like M other H ubbard; Now th ey have a different w him And dress m ore like h e r cupboard. N orth w estern B ank er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19bl 35 praised a t $6,706,850. Before she died, Mrs. Jo sly n gave aw ay about $4,600,000, m ostly for th e a r t m em orial. H er estate w as appraised a t $3,054,162. Mrs. Jo sly n ’s bonds ($2,371,859) w ere m ostly city of Omaha, Douglas county, O m aha school district, and Om aha u tility d istric t issues, b u t she had large holdings of federal bonds. N EBRA SKA IN V E S T M E N T BAN KERS A S S O C IA T IO N HOW ARD BUFFETT President Omaha CEC IL W. SLOCUM MAHA in v esto rs en tered th e se c u rity m a rk e t in a ru s h to b u y o u tstan d in g U nited S tates tax-exem pt go v ern m en t bonds an d notes follow ing S ecretary of T re a su ry M o rg en th au ’s rece n t an n o u n cem en t th a t a new gov ern m e n t tax ab le issue w as soon to be offered. M orgenthau anno u n ced a new $500,000,000 issue to ru n five y e a rs an d b earin g th ree-fo u rth s of 1 p e r cent coupon, su b ject to federal taxes. O E sta te of F ran k J. B u rk ley, Om aha business lead er w ho died S eptem ber 9, w as v alued at $744,253.82 in an in v en to ry filed in county c o u rt a t Om aha by his tw o d au g h ters, Mrs. A gnes B. H ard in g and Mrs. M ary B. B rinker. Of th e total, $339,700 w as in stocks, $299,434 in bonds. M ajor p o rtio n of th e estate, a fte r b equests to talin g $37,700, goes to th e tw o dau g h ters. Mr. B u rk ley w as p re sid e n t of th e B urkley E nvelope an d P rin tin g Company. M ost of th e estate w as in “giltedged” stocks and bonds. Only a few bonds w ere in d epreciated issues. T here w as one Czechoslovakian bond, bought a t $1,000, listed a t $97.50. Included in th e stocks and bonds in v e n to ry were: O m aha w a te r bonds, $42,000; U. S. tre a s u ry bonds, $37,000; 600 sh ares O m aha U nion Stock Y ards Com pany stock, $34,800; 200 sh ares U nion P a cific com m on, $17,900; 550 sh ares Kenn eco tt Copper com m on, $16,362; 424 sh ares A m erican T elephone an d T ele graph, $70,755; 832 sh ares B u rk ley E n velope an d P rin tin g com m on, $64,480; 395 sh ares F irs t N ational B ank of Om aha com m on, $15,405; 1,035 shares, C udahy P acking, $12,678. B uilding an d loan associations in N ebraska are in b e tte r condition now th a n a t an y tim e since th e depression, 40 building an d loan executives agreed in O m aha re c e n tly a t th e a n n u a l rou n d tab le conference of th e N ebraska League and Savings and L oan A ssocia tions. Secretary J. B. D ouglas, president, said th e associations have th e larg est cash re serves to m ake loans and th e largest reserv es to cover losses since depres sion days. In te re st rates are expected to continue a t th e p resen t level for some tim e, b u t probably w ill not go low er, he stated. T he U nited S tates N ational B ank of Omaha, executor of th e S arah Joslyn estate, recen tly asked probate co urt in Om aha for an order p erm ittin g p ay m e n t in full of various bequests other th a n th e residual bequest to th e So ciety of L iberal A rts, w hich m anages th e Jo sly n A rt M em orial in Omaha. T he application listed cash on h an d a t $876,975, w ith liquid assets of read ily salable m unicipal and governm ent bonds a t $1,807,045. B equests totaled about $650,000. W hen Mrs. Jo sly n ’s husband, George Joslyn, died in 1916, his estate w as ap Guy Gadbois, form er Om aha in v est m en t b an k er w ho m oved to California several y ears ago, has been nam ed vice p resid en t of th e O’Melveny-Wagenseller & D urst in v estm en t firm of Los Angeles, and m anager of th e con ce rn ’s B everly H ills office. Mrs. Gadbois, th e form er M arcelle Folda, onetim e queen of O m aha’s Ak-Sar-Ben, is th e d au g h ter of Mr. and Mrs. E. F. Folda, now of B everly Hills. Mr. Folda is a form er Omaha banker. J esse U. L iverm ore, onetim e “boy w o n d er” of W all Street, w ho w as found shot to death recen tly in a New Y ork hotel, h ad visited Om aha freq u en tly in recen t years. H is w ife w as th e form er H a rrie t Metz of Omaha. H arold T. L anderyou, Om aha in v est m en t b an k er w ho is poten tate of T an gier Tem ple of th e Shrine, spoke re cently w hen S hrine m em bers in Om aha w ere guests a t th e an n u al C hristm as “quota display” luncheon given by th e T angier w om en’s auxili ary. On display w ere m ore th a n 250 garm ents, inncluding 15 quilts, w hich w ere to be shipped to th e S hrine Tw in Cities hospital in M inneapolis in tim e for C hristm as. BONDS Public U tility In dustrial R a ilr o a d M u nicipal A.C.A L L Y N and c o m pany Incorporated 100 W est Monroe Street, Chicago New York R ep resen tatives: M ilw aukee W aterloo Omaha D es Moines N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Boston Cedar Rapids Banker January 1 9 'ti 36 Reprint from Omaha World-Herald, December 11, 1940 THE BOARD OF DIRECTORS OF The U nited States National Bank OF OMAHA Announces an increase of the Surplus Account from earnings to make combined capital and surplus $ 2,000,000.00 D IR E C T O R S Edgar M. M orsman, Jr. W . B. T. Belt Attorney President, Rational Security Insurance Company R obert P. M orsman R oy Page Linn P. Campbell President, Byron Reed Company, Inc. Vice President and General Manager, N.ebras\a Power Company Edwin A. D uff Duff Grain Company H enry W . Pierpont Edward Flynn Executive Vice President, Chicago, Burlington & Quincy Railroad Co. John W . FIughes President, Guarantee Mutual Life Company President, Standard Oil Company of ?s[ebras\a A braham L. R eed Chairman of the Board, Byron Reed Company, Inc. H arry F. R eed President, L. G. Doup Company Ellsworth M oser Glenn E. Jennings President, W right & Wilhelmy Company Executive Vice President H erbert M. Bushnell A rthur A. Lowman President, Northwestern Bell Telephone Company President Eighty-four Years of Sound Banking Service ntie U N I T E D S T A T E S Omaha Rational B A N R CAPITAL, SURPLUS A N D RESERVE — $2,300,000.00 Member of Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37 NEBRASKA NEWS CARL D. GANZ President Alvo WM. B. H U G H E S Secretary Omaha Officers are: P resident, J. H. H ansen, Davey, N e braska. Vice president, Gus H oufek, Malma, N ebraska. S ecretary-treasurer, E vald C. Brodd, W ahoo. E xecutive com m ittee, C. G. Hohl, chairm an; E. H. H enderson and Carl M ostrom. A lfred E. B rodahl, new ly elected sen ato r to th e state legislature, w as a guest. Consolidation Surplus Increased The d irecto rs of The U nited States N ational B ank of Om aha announce an increase in su rp lu s account to $900,000 w hich, w ith capital of $1,100,000 b rin g s capital and su rp lu s to $2,000,000. U n divided profits an d reserv e accounts of $325,000 give capital accounts to over $2,325,000. T his is in accord w ith a continuing policy of m ain tain in g am ple in v erted capital to p ro p erly service b an k p a trons. The U nited States N ational B ank is now com pleting its 84th y e a r of re n dering com plete b an k in g service for Omaha and su rro u n d in g te rrito ry . T he G rant County State B ank of O. E. K rohn, cashier, N ational B ank A shby has been consolidated w ith the of Neligh. B ank of H yannis, th e change being C. J. M ortensen, president, N ebraska m ade effective D ecem ber 12th. All de S tate Bank, Ord. posits of th e A shby Bank, w hich to H. D. W ells, vice president, F irs t taled about $200,000, loans and all other S tate Bank, Scottsbluff. business w ere tra n sfe rre d to th e H y M. W. D unlap, cashier, F arm ers annis b an k and operation of th e G rant State, Douglas. County State B ank w ill be discon G. E. B arks, cashier, F irs t N ational, tinued. Belden. It w as explained th a t th e change W. L. Seng, cashier, M erchants & w as m ade to elim inate th e operating F arm ers, McCool Junction. expense of one bank. Stock of the New Superintendent G overnor-elect D w ight G risw old has announced th e ap p o in tm en t of W ade M artin, S tratto n banker, as state b an k ing su p erin ten d en t. The ap p ointm ent w ill become effective J a n u a ry 9th. Mr. Defense Committee P re sid e n t Ganz of th e N ebraska M artin w ill re ta in his in te re st in the B an k ers A ssociation appointed a com Com m ercial B ank a t S tratton, b ut m ittee of b a n k e rs recen tly to organize L ouis Stolte, vice p resid en t and form a state su rv ey of defense in d u stry pos er cashier, w ill tak e over th e active m anagem ent. Jo h n J. Collins, w ho sibilities, and to finance new in d u stries w here th e y seem justified. A ppoint resigned as county tre a su re r of H itch m en ts follow ed a m eeting of th e de cock county, w ill take th e position of fense loan com m ittee of th e A m erican cashier in th e S tra tto n bank. B ank ers A ssociation. T he N ebraska Mr. M artin has announced he will group: re ta in D eputies J. F. M cLain and W illiam N. M itten, ch airm an, p resi George W ilson, v e te ra n em ployes of dent, Stephens N ational Bank, F r e th e banking departm ent. m ont. G risw old approved both ap p o in t E d w ard A. Becker, vice president, m ents, M artin said. C ontinental N ational B ank, Lincoln. W ilson has been associated w ith the W. B. M illard, vice president, Om aha b an k in g d ep artm en t for 15 years, first N ational Bank. as an exam iner and for th e p ast eight J. V. W ebster, presid en t, F irs t N a y ears as deputy in charge of building tional, Chadron. and loan associations, cooperative F. W. Shonka, a ssista n t cashier, Cencred it associations and in stallm en t and tra l N ational, Columbus. in v estm en t associations. P. A. Ude, cashier, N ebraska Secu M cLain cam e to th e b an king d e p a rt rity B ank, D eshler. m en t from Im perial in 1926. H e served H. J. W ragge, cashier, F irs t N atio n eig h t y ears as an exam iner and has al, T ekam ah. been deputy in charge of ban k s for C. E. A rte rb u rn , vice presid en t, St. th e p ast six years. P aul N ational, St. Paul. F. H. O berm ann, cashier, S tate B ank County Meeting of B urchard. The an n u al m eeting and b an q u et of C. A. P hillips, cashier, C am bridge S tate Bank. th e Saunders county b an k ers w as held Floyd A. H ansen, cashier, City N a on D ecem ber 17th. The ban q u et w as tional, H astings. served a t th e W igw am Cafe and b u si G. G. H am pton, vice p resident, G oth ness m eeting w as held in th e lobby of en bu rg State Bank. th e F irs t N ational Bank. A shby ban k w as ow ned by th e A bbott Company, w hich also has th e control ling in te re st in th e B ank of H yannis. Four-County Meeting T ekam ah b an k ers w ere hosts as b an k ers from Douglas, Sarpy, W ash ington and B u rt counties gath ered for a d in n er p a rty and th e q u a rte rly m eet ing of th e four-county organization. P rincipal speaker w as Judge L. W. Pow ers of Omaha, w hose topic w as “T he F a rm C redit A d m inistration.” K arl B row n of Papillion is p resident of th e four-county b an k ers group; R. K. H ancock of T ekam ah is vice p resi dent, and R. H. Hall, Florence, secre tary -treasu rer. Annual Meeting The reg u lar ann u al stockholders m eeting of th e F arm ers N ational Bank, Pilger, w ill be held in th e b an king room s on Tuesday, J a n u a ry 14th, w hen th e directors w ill be elected for the ensuing y ear and such o th er business tran sacted as m ay legally come before th e m eeting. Lobby Blooms S tephens N ational Bank, F rem ont, lobby w as alive recently w ith th e rich flame color of five dozen fresh poinsettias of th e California variety. T he C hristm as blooms, a gift from Mr. and Mrs. Joe L. Steinbach of P asa dena, form erly of F rem ont, came packed in California ice as a gift to Mr. and Mrs. N. M itten. F o u r or five tall floor b askets of th e blossom s and lu x u ria n t foliage placed N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January 19J1 38 th ro u g h o u t th e b an k lobby provided holiday atm o sp h ere ap len ty an d w ere th e subject of com m ent by every v is itor. Elected President Glen H am pton, of th e G othenburg S tate B ank, w as nam ed p resid en t of th e M id-west N eb rask a R egional C lear ing H ouse A ssociation a t its a n n u al m eeting in N o rth P latte. Thirty-five m em bers a tten d ed th e m eeting. O ther officers nam ed w ere W illiam Collett, of B rady, vice president, and G. W. T aylor, of th e M cDonald bank, secretary -treasu rer. The p resid en t w ill nam e th e m em bers of th e executive board, one from each of th e five coun ties rep resen ted in th e association— Dawson, Logan, Lincoln, K eith and P erk in s counties. Name Clements President P re sid en t of th e Cass C ounty B ank ers A ssociation for 1941 w ill be Guy L. C lem ents of Elm wood. S ecretary-treas u re r w ill be Oscar C. H inds of W eeping W ater. W alter J. W underlich, Nehaw ka, and E lm er H allstrom , Avoca, are th e re tirin g officers. Jo h n Stocker of N ebraska City w as to astm aster at th e an n u al b an q u et in P lattsm outh. LIVE STOCK NATIONAL BANK-OM AHA RESOURCES L oans and D isco u n ts........................................................................................................................$ 8,541,735.74 B o n d s and O th er S e c u r it ie s .................................................................................................................. 5,933.97 Stock in Federal R eserve B an k .................................................................................................. B anking H ouse and F ix tu r e s............................................... ...................................................... Other Real E s t a te ............................................................................................................................ U. S, Gov’t S e c u r itie s.........................................................................................$3,472,344.89 (S ee Item ized L ist B elow ) Cash, Sigh t E xchange and Due From Fed. Res. B k ............................... 4,429,140.56 30,000.00 1-00 N one 7,901,485.45 $16,479,156.16 LIABILITIES ........................ $ ........................ ........................ ........................ ........................ ........................ 500,000.00 500,000.00 187,335.66 163,294.59 5,148.63 7,500.00 $8,326,639.92 6,789,237.36 15,115,877.28 $16,479,156.16 U. S. GOVERNMENT SECURITIES D escription Rate M aturity Bonds 3% ............................... 6-15-47-43 Bonds 4 .............................. 12-15-54-44 B onds 3% .............................. 3-15-56-46 Par V alue $ 250,000.00 1,500,000.00 1,400,000.00 Book V alue M arket V alue $ 269,876.56 $ 270,000.00 1,653,021.90 1,707,656.25 1,549,446.43 1,621,375.00 $3,150,000.00 $3,472,344.89 $3,599,031.25 P r e m iu m on U . S . G o v e r n m e n t S e c u r iti e s a m o r tiz e d to o p tio n a l d a te . OTHER BONDS AND SECURITIES Sarpy Co. School D ist. W a rra n ts...............................$5,933.97 $5,933.97 Capital and Surplus Loans and Discounts Dec 31, 1933_____$ 550.000.00_____ $1,566,262.23_____ $ Dec! 31, 1935____ 650.000.00_____ 2.089.532.87______ Dec. 31, 1937____ 760.000.00_____ 5,582.387.78______ Dec. 31, 1940____ 1,000,000.00_____ 8.541,735.74______ $5,933.97 Deposits 4,910.106.01 10,527,574.79 12,926,413.94 15,115,877.28 We offer our banking friends our facilities for cooperating with them in the financial problems of the Live Stock, A gricultural and Commercial inter ests—and extend Season’s Greetings with best wishes for a Happy and Prosperous New Year. ALVIN E. JOHNSON, President T h is B a n k H a s N o A ffilia te d C o m p a n ie s M e m b e r o f F e d e r a l R e s e r v e S y s te m a n d F e d e r a l D e p o s it I n s u r a n c e C o rp o ra tio n N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 T he A bbott Com pany w ill add an o th er to its list of banks w hen it opens a new in stitu tio n in Chadron. A state c h a rte r has been g ra n te d for th e bank, w hich w ill have a capital stock of $100,000. It w ill be located in th e building now occupied by th e Style Shop. T he store is now having a rem oval sale and it is hoped to have th e building rem od eled in tim e to s ta rt business aro u n d the first of th e year. The in stitu tio n at Chadron w ill m ake a to tal of six banks controlled by th e com pany. T he o thers are at Alliance, Scottsbluff, H yannis, M ullen and W ood Lake. T he com pany recen tly closed one in stitu tio n w hen it consolidated th e b ank a t A shby w ith th e b ank at H yannis. Arcadia Banks Consolidate S t a t e m e n t of Condition December 31, 1940 Capital Stock (C om m on).................. Surplus (E arned) .............................. U ndivided Profits ............................... R eserve for T axes, Interest, E tc .. U nearned D isco u n t .................... D ividend P ayab le January 2, 1941 D ep o sits : Banks ................................................ Other D ep o sits ............................ Bank at Chadron A consolidation of th e tw o banks of A rcadia w as effected w hen th e A rcadia State B ank p u rchased th e F irs t N a tional B ank of th is city. T he form er b an k w as organized in 1888, th e la tte r in 1908. Buy Fairbury Bank T he e n tire stock of th e N o rth w est B ancorporation in th e F irs t N ational B ank of F a irb u ry w as p u rchased re cently by a group of F a irb u ry business m en, headed by L u th e r B onham and C. J. B achroritch. T he bank w as affili ated w ith th e N o rth w est B ancorpora tion for th e p ast 11 years. T he purchase w as th e larg est single financial tran sactio n in so u th ern N e b rask a in m any years. The b an k has total assets now in excess of $2,710,000; o u tstan d in g loans of $1,379,000; ow ns go v ern m en t and m unicipal bonds to talin g $469,000 and has m ore th a n $728,000 cash on hand. T he capital stock is $150,000 and th e surplus, u n divided profits and reserves to tal $ 122,000. A t th e an n u al m eeting of th e stock holders of th e b an k to be held in J a n uary, C. J. B achoritch and G. R. LeRoy w ill be added to board of direc tors, and Mr. B achoritch w ill become vice chairm an and executive vice p res ident. T he p re se n t board of directors includes L u th e r B onham , Iv an C. Riley, F. A. H ouston, Jess Lee and C harles R. Moon. Remodeling R em odeling is being done in th e F irs t N ational Bank, W ayne, to p ro vide tw o offices instead of one a t the so u th east corner of th e room. Coun ters are being m oved w est to fu rn ish th e space. 39 m ore th a n $1,000. L arg est am ount paid out by any one bank, $225,667, w as d istrib u ted by th e U nited States N ational, to 5,384 m em bers. O ther banks in th e plan are th e Om aha N a tional, F irs t N ational, Live Stock N a tional, N o rth Side Bank, P ackers N a tional, South Om aha Savings, and Stock Y ards N ational. T he Live Stock N ational paid out $68,674.60 on De cem ber 2nd, according to P resid en t A lvin E. Johnson. RS. J. V IN C EN T STA R R ETT, b eauteous Sw iss-R ussian w ife of th e A m erican m anag er of th e N ational City B ank of N ew Y ork’s b ran ch at Peiping, China, w ith h e r children, A ndre, 4, and D iana, 12, stopped in O m aha recen tly for a b rief v isit w ith Mr. and Mrs. Sam B. Starrett, Jr. T hey w ere on th e ir w ay east, h a v ing sailed from C hina w ith o th er evacuees N ovem ber 14th. Mr. S ta r r e tt rem ain ed in P eiping for th e tim e being. D espite th e Jap an ese invasion, life in C hina w en t on about as usual, she said. W. B. M illard, Jr., vice presid en t of th e O m aha N ational Bank, is ch airm an of th e Omaha Com m ittee for B ritish W ar Relief. He re tu rn e d recen tly from New York, w here he conferred w ith n ational h e ad q u arters officers. B ritish relief groups, including Allied W ar Relief and B ritish Relief Soci eties, have been m erged u n d er th e nam e of B ritish W ar Relief Society, Inc., and th e goal has been placed at $ 20, 000,000. J. F. M cD erm ott, vice presid en t of th e F irs t N ational B ank of Omaha, is tre a s u re r of th e Om aha com m ittee. S urplus account of th e U nited S tates B ank of O m aha w as in creased recen tly to $900,000 by action of th e board of directors. W ith cap ita l of $1,100,000, th is b rin g s th e b a n k ’s capital an d su rp lu s to $2,000,000. U n divided profits an d reserv e of $325,000 give th e b an k a to tal capital of $2,325,000. Increase in su rp lu s is ef fected by tra n s fe rrin g p a rt of th e b a n k ’s earn in g s to th a t account. A sta te m e n t issued by th e b a n k ’s di recto rs said: “T h ro u g h o u t th e 84 y ears of th e b a n k ’s u n in te rru p te d service to th e O m aha area, th e U nited States N ational B ank has m ain tain ed a policy of tra n s fe rrin g a p o rtio n of its earn in g s to su rp lu s to su pplem ent th e sto ck h o ld ers’ in te re st in o rd er th a t th ere m ig h t be a sound and conserv ative ra tio of capital, su rp lu s an d r e serve to increasin g cu sto m ers’ de posits.” M ore th a n $400,000 in C hristm as club savings w as paid out recently to n early 11,000 m em bers in Omaha by eight banks. T he accounts ranged from $5 to M N ational A rthur B. Coad, p resid en t of th e P ack ers N ational Bank, has been nam ed c h airm an of an em ergency com m ittee of five to act on b ehalf of th e South O m aha M erch an ts’ A ssocia tio n in connection w ith th e proposed bom ber assem bly p la n t to be e stab lished a t a cost of $10,000,000 a t F o rt Crook, so u th of Omaha. 2-UicJz fya cti 1 . Saves T hree n ational officials of th e w om en ’s com m ittee of th e A m erican In stitu te of B anking w ere guests at a tea sponsored recen tly by th e Omaha chapter. T hey included M iss R ose Ziph, K ansas City, M issouri, p resen t ch airm an of th e com m ittee; Mrs. M ary K. C unningham , M inneapolis, last y e a r’s chairm an, and Mrs. R. N. P erley, Om aha ch airm an before Mrs. C unningham . C hairm anship of the w om en’s com m ittee is regarded as th e hig h est office open to w om en in banking. M iss T he resa G hiringhello, ch airm an of th e Om aha chapter, w as in charge of th e tea. Mrs. A rthur L. Coad is presid en t of th e alum nae of D uchesne college of Omaha, w hich sponsored a lecture by Rev. D aniel L ord of St. Louis on De cem ber 6th. D enm an Iiou n tze, form er Omaha banker, has sold his in te re st in th e general in su ran ce agency of M orrison & K ountze to Jo h n K. M orrison, M ark W. Besack, E. H. D ahlgard and E. F. A nderson, and th e nam e of th e firm about cheek expense! Monogrammed Checks are sold to customer . . . 200 for only $1. 2. Appeals to customer immediately as a great deal of prestige goes with the use of personal checks. 3. N ot an ordinary appearing check. Every one likes its modern design. Individual's monogram is popular and provides very per sonal element. MOC H E C K S ! 4. Beautifully printed in TWO colors in stead of the customary one color. 5. Available in choice of TH R EE colors of Safety Paper— Azure, Com or Stone. 6. Numbered consecutively — promotes cus tomer’s reconciliation of balances, an im portant educational feature going far towards eliminating overdrafts. Wri te today for F REE C O U N T E R DI S PL AY and I NF OR MAT I ON! United S tates Check B ook Co. OMAHA. NEBRASKA N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January 40 has been changed to M orrison & Com pany. K ountze w as vice p resid en t and secretary since th e firm w as founded in Septem ber, 1939. K ountze a n nounced he w ould organize a new agency. Mr. an d Mrs. J o h n R. L au ritzen spen t th e T h an k sg iv in g holiday in Om aha w ith Mrs. L a u ritz e n ’s paren ts, Mr. and Mrs. T. L. D avis. Mr. Davis is p resid en t of th e F irs t N ational B ank of Omaha. T he L au ritzen s live in M inneapolis. D avid F. D avis, tr u s t officer of th e Om aha N ational B ank, is th e new presid en t of th e Om aha club, long- established dow ntow n social club for business and professional m en. The club’s building w as rem odeled recen t ly. R etirin g presid en t is M orse P alm e r of th e S tan d ard Oil Com pany of Ne b raska. Re-elected tre a su re r is John M. D ouglas, Om aha in v estm en t b a n k er. T. W. M orsm an and C. A. A bram son w ere elected to th e board of di rectors. Mrs. C atherine M. Grest received $42,500 for th e death of h e r husband, Jacob J. Grest, vice p resid en t of th e F ed eral F a rm M ortgage C orporation, w ho w as killed in an elevator acci d en t in th e F a rm C redit building a t Omaha, A ugust 14th. O w ners of th e Charter No. 2 0 9 F irst National Bank of O m aha building w ere covered by a liability policy w ith th e London G u aran ty an d A ccident Company. The settlem ent, w ith o u t a law suit, w as effected by F o ster-B arker Com pany of Omaha. C ounty Judge B ryce C raw ford ap proved th e settlem ent. T he ban k s division, A u stin V ickery, chairm an, w as first to m ake a com plete re p o rt in O m aha’s Red Cross cam paign, w ith $628.80, ag ain st $470.10 last year. Omaha N ational Bank, as tru ste e for th e estate of th e late Mr. and Mrs. C. N. Dietz of Omaha, sought recently to sell a t public auction a nu m b er of pieces of Dietz p roperty, including th e Dietz residence, one-tim e showplace in O m aha’s fashionable W est F a rn a m district. The residence’s as sessed v alu atio n w as listed on th e tax books at only $13,215, b u t no bid w as v e n tu re d on th e p ro p erty a t th e auc tion. Om aha b an k debits in N ovem ber increased 3.8 p er cent over th e sam e m onth in 1939. B ank clearings de creased 1.4 p er cent. L ivestock re ceipts w ere up 7.7 per cent, reflecting th e bigger payrolls at th e Omaha packing houses. Debits for N ovem ber w ere $140,675,283; clearings, $138,555,203. F o r th e w eek ended N ovem ber 9, b oth debits and clearings w ere g re a te r th a n th e sam e w eek th e previous year. Resigns The O ld e s t N a tio n a l B a n k F r o m O m a h a W e st Jo h n V an A uken, vice p resid en t of th e L exington S tate Bank, has severed his connection w ith th e bank, effective th is m onth. He recen tly sold his hom e to Dr. A. R. T ransue, and Mrs. V an A uken and daughter, Jean, are at p re se n t in Lincoln. Mr. V an A u k en ’s plans for th e fu tu re are ra th e r in definite. H ow ever, he has several th in g s in m ind an d w ill m ake his de cision a t an early date. High Flyer Nationalized 1 863 O FFICERS T. F. J, C. J. J. L. D a v i s .......................................... President A. H . Ch is h o l m .................A ssistant Cashier W . T h o m a s ................................................. V ice President O. H . E l l io t t ........................ A ssistant Cashier F. M cD er m o tt ..........................................Vice President O. H . V e b e r ...........................A ssistant Cashier D . S a u n d e r s ...............................................Vice President E. N. S o lo m o n ...................... A ssistant Cashier T. S tew art , I I I .V ic e Pres, and Cashier E. P. J e p s e n .......................... A ssistant Cashier F. D a v i s ...................................................... V ice P resident H. A. A r n sb e r g e r ............A ssistant Cashier W. E. S p e a r ...................................Trust Officer E. G. S o lo m o n .......... A ssistant Trust Officer Member Federal Reserve System N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19 M Member Federal Deposit Insurance Corporation L ittle Jackie: “A re you an angel, daddy?” Daddy: “Of course not, son. W hy do you ask?” L ittle Jackie: “Well, I ju s t h eard m um m ie tell th e lady n ex t door she was going to clip yo u r w ings.” SELL YOUR BANK The “Walters” Way Without Publicity Qualified, carefully investigated bank employees furnished free T H E CHARLES E. W A LT ER S CO. Omaha, Nebraska 41 Misko Buys Control A fter being connected w ith th e F irs t N ational B ank for tw en ty years, d u r ing m ost of w hich tim e he served e ith er as p resid en t of th e bank, ch air m an of th e board of directors or as a director, F ra n k K oupal sold all his holdings in the b ank to R alph E. Misko, p resen t b ank cashier. A m ount of m oney involved w as n o t disclosed. The stock w as b ought by Mr. Misko personally b u t th e estate of his late fath er, Jam es Misko, ow ns a su b stan tial block of F irs t N ational B ank stock, so th is p u rchase gives control of th e b an k to th e Misko fam ily. No change in b an k personnel w ill tak e place at p resent, it is stated. In Locals H E legislative com m ittee of th e N e b rask a B an k ers A ssociation m et re cently in L incoln to lay plans for “h a v ing som eone on th e g ro u n d ” d u rin g th e com ing session of th e legislature. Secretary W illiam B. H u gh es of O m aha said th e g roup w ill probably have little, if an y th in g , to propose b u t w ill be a le rt for an y proposed legisla tion favorable or otherw ise to th e in te re sts of N ebraska b ankers. C hairm an D an J. R iley of D aw son w as in charge of th e m eeting. Carl D. Ganz of Alvo, p resid en t of th e associa tion, and A rthur L. Coad, ch airm an of th e association’s com m ittee on consum e r credit, attended. O thers p re se n t w ere Ju lian L. S teven son , N ebraska City; E m il E. P lacek, W ahoo; Robert H . H all, Omaha; H. A. Schneider, P lattsm o u th ; R obert H. Clarke, Papillion; J. F. M cD erm ott, Omaha, and T. B. Strain, Lincoln. T In a double rin g cerem ony p e r form ed by Dr. E d m u n d M iller in th e F irs t P re sb y te ria n C hurch of Lincoln, Miss E lizab eth W augh, d a u g h te r of S am u el Clark W augh, Lincoln, becam e th e brid e of John T em p leton B row n lee, Jr., son of Mr. an d Mrs. Jo h n T. B row nlee, Lincoln. A fter a trip to F lo rid a th e couple re tu rn e d to R apid City to m ake its hom e. Mr. B row nlee is em ployed at th e R apid City N ational B ank. B ecause of bad roads, th e convention of th e 94 cooperative b an k s of th e state in L incoln, o riginally scheduled for last m onth, w as postponed u n til J a n u a ry 10th. L ou is J. W illie, secretary of th e N eb rask a association, and o th er officers m et to change th e date. The m eetings w ill be held in th e capital, b oth aftern o o n an d evening. E ach em ploye received a s ta rry en velope in w hich w as enclosed a check am o u nting to 10 p er cent of his y e a r’s salary. C hristm as carols w ere sung, and P resid en t M. W eil gave his “bank ch ild ren ” a b it of counsel d raw n from his decades of b an king experience. I t h as been th e b a n k ’s custom for m an y y ears to give its em ployes a C hristm as bonus, b u t Mr. AVeil said th is is th e first y e a r a specific p ercen t age of salary has been decided upon. In addition to th e em ployes, th ere w ere five guests a t th e dinner. E vald M. F o rsy th , L incoln, p resid en t of th e F irs t F ed eral Savings and Loan A ssociation, has been elected regional director-at-large for th e F ed eral Home L oan B ank a t Topeka, K ansas, it w as announced. T he b an k serves th e 10th region, w hich includes N ebraska, K an sas, O klahom a and Colorado. A O U R BANK SO LV ED W A G E -H O U R PROBLEM (C ontinued from page 11) th a t an official title alone does not give exem ption. T he E xecutive classification requires a salary of a t least $30 p er w eek or $130 p er m onth. T he A d m inistrative classification re quires a m onthly salary of a t least $200 p er m onth. W h at w ill the W age and H our in spector do w h en he com es into your bank? 1. Ask for a list of all em ployes d u r ing th e period of October 24, 1938 to date to g eth er w ith th e am o u n t of over tim e due each employe. 2. A sk for a list of em ployes on w hom exem ption is claimed. 3. On each em ploye u n d er 19 years of age, a Certificate of E m ploym ent H a p p y H e w y e a r With increased facilities to assist its Nebraska correspondent banks, the CONTINENTAL NATIONAL BANK enters 1941 with confi dence it can serve even better its banks and bankers during the New Year just ahead. C o n t in e n t a l R a t io n a l B a n k °r A nnual C h ristm as bonuses to talin g $5,311.64 w ere d istrib u te d w h en th e 40 em ployes of th e N ational B ank of Com m erce held th e ir a n n u al party . LINCOLN M em ber F ederal D eposit Insurance Corporation N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January 1941 42 -• w ill be req u ested from th e school last attended, v erify in g th e age of th e em ploye as show n by th e school records. T his is to check on violations of th e Child L abor Law w hich p ro h ib its th e em ploym ent of p ersons u n d e r sixteen y ears of age. 4. E x am in e th e m ethod used in de te rm in in g th e h o u rly rate. 5. Secure statem en ts from em ployes to g eth er w ith receip ts for overtim e paym en ts actu ally made. 6. F ro m an ex am ination of th e rec ords, it w ill be d eterm in ed w h e th e r th e em ployer has observed a reg u lar N E B R A S K A N E WS or irre g u la r w orkw eek since th e Act becam e effective. If th e em ployer is found to have been w orking an irre g u la r of fluctu atin g n um ber of hours, th e n he w ill be considered as o perating u n d er th e Irre g u la r or V ariable W orkw eek. Con tra ry to arg u m en ts advanced by m any, th e actual n um ber of ho u rs w orked m ay n ot be th e d eterm in in g factor. If th e em ployer has paid overtim e at actu al tim e and one-half in excess of 44 h o u rs for th e period of October 24, 1938 to October 24, 1939 and on hours w orked in excess of 42 for th e period • of October 24, 1939 to October 24, 1940, th en he has definitely established a reg u lar w orkw eek, even th o u g h the h o urs m ay have fluctuated, and is eli gible to adopt one of th e co n stan t w age plans. Irregular W orkw eek: W here th ere is no reg u lar n u m ber of ho u rs p er w eek fixed by agreem ent or custom , th e reg u lar ho u rly ra te w ill be determ ined by dividing th e w eekly w age by the nu m b er of h o urs w orked and w ill v ary from w eek to w eek in in direct proportion to th e nu m b er of hours w orked. H ow ever th e em ployer m ay not take credit for undertim e. Constant W age Plans: T h e First N atio n al of L incoln (Organized 1871) NEW R E SP O N SIB IL IT IE S A new year means new responsibilities. A new year means new opportunities. A new year means a new desire on the part of the officers and directors of the First Na tional Bank of Lincoln to be of increased service to their cor respondent banks in whose wel fare they are vitally interested. Let us know if there is any special assistance we can ren der you as we enter 1941. OVER SIXTY-NINE YEARS OF BANKING EX PER IEN C E G EO R G E W . H O LM ES.............P r e s id e n t P . R. E A S T E R D A Y .-E xecutive V ic e -P re s id e n t DON A LD P . EA STER D A Y ...... A s s t. V ic e -P re s . L. C. C H A P IN .................................. V ic e -P re s id e n t ERNEST U. G UENZEL.......................................A ss t. V ic e -P re s . STANLEY MALY .........................V ic e -P re s id e n t CLIFFO RD G . W E ST O N ...... A s s is ta n t C a s h ie r B. O . CAM PBELL.............J u n io r V ic e -P re s id e n t A . C. G LA N D T...........................................A s s is ta n t C a s h ie r R. J. BECKER................................................A s s is ta n t C a s h ie r H O W A R D FREEM A N ................................C a s h ie r Member Federal Deposit Insurance Corporation N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ja n u a ry 19^1 The A d m in istrato r has approved tw o C onstant W age Plans, th e Tim e Off and th e P rep ay m en t Plan. The Tim e Off P lan is re stric te d in its operation to pay periods and sim ply m eans th a t one h o u r of overtim e m ay be offset by one and one-half hours of tim e off a t som e tim e w ith in th e sam e pay period. The P repaym en t P lan is outlined as follows in In te rp re ta tiv e B ulletin No. 4: “T hough overtim e com pensation due an em ploye m u st n orm ally be paid a t th e tim e of th e em ploye’s reg u lar pay period, th ere is no objection if th e em ployer pays overtim e com pen sation to becom e due to an em ploye in advance. T his is th e basic principle of th e P rep ay m en t P lan .” The em ployer and em ploye agree th a t in an y w eek in w hich th e em ploye w orks less th a n 40 hours, the em ployer w ill advance to th e em ploye th e difference betw een th e am o u n t equal to his reg u lar ra te of pay for 40 ho u rs and th e am ount he w ould have received if he had been paid only for th e n um ber of ho u rs he w orked. I t w ill be noted in th e foregoing ex p lanation th a t th e P rep ay m en t P lan is based on an advance in dollars and cents to th e em ploye in w eeks in w hich few er th a n th e m axim um n u m ber of ho u rs are w orked. H ow ever, in settin g up our records, we have ac counted for such advances in tim e (re corded in m inutes) ra th e r th a n in dollars and cents, n o t only to sim plify th e book-keeping b u t to expedite th e w o rk of inspectors in checking our records. W hen an inspection is m ade, th e original tim e cards m ay be checked w ith th e figures show n on th e em ploye’s record sheet; from th is p o in t all com putations are show n on one sheet. As advances are recorded in m inutes, dollars and cents are only ta k e n into consideration w hen over tim e is w orked in excess of accum u- 43 • lated u n dertim e. T h en th e deficiency is reduced to hours, m ultiplied by th e em ploye’s overtim e ra te w hich gives th e actu al am o u n t due. A tten tio n is called to th e fact th a t only credits to th e em ployer w ill be carried over beyond th e pay period; credits to th e em ploye, i. e., overtim e com pensation due th e em ploye, w ill not be c arried over beyond th e pay period to be consum ed by su b sequent em ployer advances, b u t w ill be paid in cash a t th e pay period. In th is w ay th e em ployer w ill nev er becom e in debted to th e em ploye. It cannot be em phasized too stro n g ly th a t th e valid ity of th e p lan de pends upon th e assu m p tio n th a t w hen th e em ploye receives f u l l pay for w eeks in w hich he w orks less th a n th e sta tu to ry m axim um , he is being paid in excess of w h a t he earn s or is en titled to and is th erefo re given a loan or advance w hich he m ay w o rk out in subseq u en t overtim e. The question m ay arise as to w h e th e r th e loan or advance is really a loan or advance. The D ivision h as stated th a t th e d e te r m inatio n of th is question m ay depend on w h a t th e p a rtie s u n d e rsta n d w ill happ en w h en an em ploye severs his relatio n sh ip w ith th e em ployers. If th e em ployer still has some accu m u lat ed credits at th a t tim e, w ill som e a t tem p t be m ade to get back th e am o u n t of th e loan or advance from th e em ploye since th e re is no fu rth e r possi b ility th a t it w ill be w orked out by subseq u en t overtim e The fact th a t no atte m p t w ill be m ade by th e em ployer to collect th e am o u n t due him eith er by deducting such am o u n t from th e em ploye’s last check or by some oth er way, is some indication th a t th e loan or advance is sim ply a fictitious book keeping device. Also at th e end of a y ear or some sh o rte r period credits accum ulated by th e em ployer are sim ply w iped off th e slate an d a new s ta rt is m ade, is some indication th a t th ere is no loan or advance in fact. If th e re is no p rep ay m en t in fact, th e Act w ill have been violated. C redits to th e em ployer, i. e., am ou n ts paid by him in excess of am ounts earn ed by th e em ploye or to w hich th e em ploye is entitled, m ay be carried over beyond th e pay period u n til th e y are consum ed by th e o ver tim e w ork of th e employe. W e adopted th e P rep ay m en t P lan on Ju ly 1st of last y ear believing th a t YO UR STATE BANKERS ASSO CIA TIO N O FFIC IA L SA FE, V A U L T A N D TIM ELOCK EXPERTS N E B R A S K A N E WS • such a plan p roperly applied w ould re su lt in th e accum ulation of credits in th e second and th ird w eeks of the m o n th sufficient to offset overtim e w orked in th e first and fo u rth w eeks of th e m onth. To date th is has w orked out as anticipated, in th a t our actual cash paym ents have been m aterially reduced. Em ployes know ing th a t they have credits to w ork against, n a tu ra l ly are w orking u n d er less tension a t busy periods. W e did not adopt th e Tim e Off P lan because it is restricted in its operation to pay periods. We did not adopt an Irre g u la r W orkw eek as we believed th a t over a period of tim e th is plan w ill re su lt in too m any overtim e pay m ents. It is based upon th e suppo sition th a t as m any ho u rs w ill be w orked as m ay be necessary to com plete th e w orkw eek, and on first th o u g h t th e variable ho u rly ra te m ay seem quite advantageous to th e em ployer. The irre g u la r w orkw eek m ight easily becom e an indefinite w orkw eek. The n um b er of hours w orked should be controlled, and w hen th e volum e of w ork lightens, th ere is no good reason w hy an em- (om m ercejrust (ompa ny 9 18-1 E s t a b lis h e d 1865 K A N S A S C IT Y , M IS S O U R I M e m b e r F e d e r a l R e s e r v e S y ste m S ta te m e n t o f C o n d itio n at C lo s e o f B u s in e s s D e c e m b e r 31, 1940 R E SO U R C E S Cash and D ue from B a n k s .. ............................................................$80,662,111.95 U. S. O bligations, D irect and F u lly G uaranteed..................... 39,378,145.06 $120,040,257.01 State, M unicipal and Federal Land Bank B o n d s.................... 19,013,012.30 Stock of Federal R eserve B an k ...................................................... 270,000.00 Other Bonds and S e c u r itie s................................................................ 12,692,094.80 31,975,107.10 L oans and D isco u n ts.......................................................................................................... 44 014 955 gg Bank Prem ises and Other Real E state O w ned.................................................... 2,567 167.90 Custom ers’ L ia b ility A ccount L etters of C red it.................................................. 22,852.79 Accrued Interest R e ce iv a b le ......................................................................................... 354,480.82 Overdrafts ................................................................................................................ ............ Other R esources 38,315.31 ................................................................................................................. 2,188 18 T otal R esources .......................................................................................................... $199,015,335.01 L IA B IL IT IE S D ep osits ....................................... $186,304,792.64 Capital ........................................................................................................ $ 6,000,000.00 Surplus ........................................................................................................ 3,000,000.00 U ndivided Profits ..................................................................................... 3,617,216.09 12,617,216.09 L ia b ility A ccount L etters of C red it.......................................................................... 22,852.79 A ccrued Interest, T axes and E x p e n se ........................................................................ 69,151.65 Other L ia b ilitie s ........... ................................................................................................... 1 321.84 T otal L ia b ilitie s ........................................................................................................ $199,015,335.01 M em ber Federal D eposit Insurance Corporation F. E. DAVENPORT & CO. OM AHA N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January Î 9 M 44 • ploye should be req u ired to stay in th e b ank u n til a certain h o u r if he m ight have com pleted his w ork e a r lier. If he is req u ired to keep certain fixed h o u rs regard less of th e volum e of w ork, th e n busy days w ill re su lt in overtim e. W e believe th a t a m on th ly salaried em ploye w ho receives cash paym ents in w eeks in w hich m ore th a n th e m ax im um nu m b er of ho u rs are w orked and is not req u ired to account for u n dertim e in w eeks in w hich few er th a n the m axim um are w orked, can h ard ly be considered as a tru e hou rly rate N E B R A S K A N E WS em ploye. It w ould seem th a t th e Ad m in istrato r had this fact in m ind w hen th e P rep ay m en t P lan w as approved. U ntil th a t tim e th ere w as no w ay in w hich this discrepancy could be ad justed. W hen operating on th e basis of an irre g u lar w orkw eek, all overtim e is payable in cash. U nder th e P rep ay m en t P lan it is reasonable to assum e th a t a su b stan tial am ount of actual overtim e m ay be offset. The W age and H our L aw has had th e effect of causing m any banks to speed up the tem po of ro u tin e w ork • as well as exam ine operating proced ure. The fact th a t a certain system has been in use for years or th a t em ployes have fallen into th e h ab it of allow ing a fixed tim e for a p a rtic u la r operation, is no reason w hy th e sys tem m ight not be changed for a less cum bersom e one or th a t tim e m ight not be reduced in m any operations. As all em ployes covered by th e Act have now become ho u rly rate em ployes, th en w asted tim e and duplica tion of w ork should be elim inated w here possible. A re-arran g em en t of w ork m ay be the first step in th a t di rection. A dm in istrator’s Stand on O vertim e — October 16, 1940. As we cross the threshhold of 1941, the LIVE STOCK NATIONAL BANK of SIOUX CITY enters its 46th year. We are proud of the part we have had in develop ing the territory we serve. ''America” says one financial authority "is now swinging into a period which promises to become one of the most active in its history.” In this active period ahead the LIVE STOCK NATIONAL BANK is more anxious than ever to be of service to you in the handling of your Sioux City items and serving you in any other way that it can. Happy New Year. O F F IC E R S D IR E C T O R S C. L. Fredricksen, President C. R. M cK enna, Pres., 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 osw ell, Secretary-Treasurer, W estern Contracting Corporation 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 “The Bank at the Yards' LIV ESTO CK NATIONAL BANK y N orth w estern S I O U X C I T Y , IO W A Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 “W hen on Ocotber 24, 1940, th e ba sic w orkw eek u n d er the F a ir L abor S tandards Act is reduced from 42 to 40 hours, tw o altern ativ e m ethods of ad ju stm en t are open to p lants now op eratin g on a basis of a 42 ho u r w o rk w eek or longer: 1. T he existing w orkw eek m ay be m aintained and em ployes paid each w eek in addition to th e ir p resen t wage, am ounts equal to one-half th e ir reg u lar rate of pay for tw o hours. 2. E x istin g wage paym ents m ay be m aintained and th e w orkw eek of each em ploye w ill be reduced by an am ount sufficient to m eet th e new h o u r sta n d ard .” F o r em ployers w ho have chosen the second altern ativ e, W age and H our A dm in istrato r F lem ing pointed out th a t the 40 h o u r w eek w ill req u ire a reduction in w eekly w orking tim e not of tw o hours b u t only of fo rty m inutes. On October 24th, 1940 we set a w o rk w eek of 41 hours 20 m inutes and as we operate on th e P rep ay m en t Plan, u n dertim e u n d er 40 hours is added to ac cum ulation at m inute for m inute, w hile u n d ertim e betw een 40 and 41 h o urs 20 m inutes being paid for a t th e overtim e rate, w ill increase th e accum u lation one and one-half m inutes for each m inute not worked. He have solved our W age and H our problem and the solution is not diffi cult, m oreover, it is agreeable w ith em ploye and em ployer alike. Safety Shave “M am m a,” said little Johnny, “don’t m en ever go to h eaven?” “W hy, of course, m y dear. W h at m akes you ask?” “Because I n ever see any p ictures of angels w ith w h isk ers.” “W ell,” said th e m other, th o u g h t fully, “some m en do go to heaven, b ut th ey get th ere by a close shave.” 45 SOUTH DAKOTA NEWS F. F. P H IL L IP P I President Milbank GEORGE M. STARRING Secretary-Treasurer Huron New Director P. J. Dunn Dies E a rl K eller w as appointed directo r of th e R apid City N ational B ank to fill the vacancy caused by the recen t d eath of E d w ard H. Sw ander, th e board of directors announced. K eller has been an officer of th e b an k since its organization in 1934. He re ceived his first ban k in g experience in Cedar Rapids, Iowa, com ing to R apid City in 1929. P. J. D unn of M iller passed aw ay at R ochester, M innesota, last m onth, at th e age of 68 years. Mr. D unn w as th e youngest of a large fam ily, w ho cam e as pioneers to H and county in 1884, hom esteading in Cam pbell tow nship, w here th ey lived for fifteen years. Mr. D unn m oved to M iller w here he learned th e p rin tin g tra d e w ith J. A. Bushfield, editor of th e H and County Press. U nder Mr. Bushfield as postm aster, he served as dep u ty and th e re a fte r w en t into the in su rance business. He organized and w as cashier, and later president, of th e Ree Valley B ank at O rient u n til it m erged w ith th e O rient State Bank. Pioneer Dies F u n e ra l services and b u rial took place in Y ankton for J. E. Ziebach, W essington S prings b anker, w ho died in a H uron hospital. The son of F. M. Ziebach, South Da kota pioneer w ho founded th e W eekly D akotian in 1861, he him self h ad a long and in te re stin g record in connection w ith th e s ta te ’s developm ent. He had served as a m em ber of th e state legis lature, th e last tim e as a sen ato r in 1937, and w as at one tim e a ru ra l cred it com m issioner. He h ad an in tim ate acquaintance w ith th e developm ent of th e state and at one tim e published a new spaper. Annual Party E m ployes and officers of th e N o rth w est S ecurity N ational Bank, Sioux Falls, frolicked at th e ir a n n u al C h rist m as p a rty a t th e C ataract H otel b all room. Forty-tw o attended. Follow ing a 7:15 p. m. d in n er an en te rta in m e n t p ro g ram w as presented, featu rin g B ert Clauson at th e piano and Jo h n Griffin doing a series of m agic acts. Gifts w ere exchanged and em ployes received th e ir a n n u al gift from th e offi cers. D ancing closed th e program . Attends Meeting C. C. A nderson, m an ag er of th e R apid City office of th e F irs t N ational B ank of th e Black H ills, and a form er resid en t of Lead, recen tly atten d ed a m eeting of directors of th e Lead b ran ch office. Made I I 7,000 Loans F ifty p er cent of South D akota’s com m ercial banks m ade m ore th an 117,000 loans to taling $38,000,000 to business firms and individuals th ro u g h out th e state du rin g th e first six m onths of 1940, according to the sem i a n n u al su rv ey of ban k lending activ ity m ade by the A m erican B ankers Association. T he A. B. A. loan survey w as p a r ticipated in by eighty-four South Da k ota banks, or 50.9 per cent of the b an k s in the state, according to T. M. B risbine, W oonsocket, chairm an P u b lic R elations Com m ittee of th e South D akota B ankers Association. T hese eighty-four banks reported th a t betw een Ja n u a ry 1 and Ju n e 30, 1940: 83,823 new loans to taling $22,084,099 32,979 renew als of loans t o t a l i n g ................ 14,824,534 567 new m ortgage loans to taling 1,209,387 117,369 $38,118,020 T he survey show ed th a t business firm s in th e state used only 47.3 per cen t of th e “confirm ed open lines of c re d it” m aintained for th e ir use on the books of banks. A total of 11 banks in th e larg er centers of the state reported th a t th ey carried on th e ir books $886,500 in “open lines of cred it” offered to and kept available for reg u lar b orrow ers for use as needed by them . Of th is am ount $419,539 or 47.3 per cent w as used. The average num ber of new loans m ade per bank d u ring th e six m o n th s’ period u n d er review w as 998 and the average size of loan w as $263. The average n u m ber of loans renew ed per bank w as 393 and the average renew al w as for $450. The average num ber of new m o rt gage loans m ade per b an k w as seven and the average new m ortgage m ade w as for $2,133. 100 Per Cent S u p erin ten d en t E rlin g H augo recen t ly announced the dep artm en t of b an k ing and finance w ill distrib u te a 100 p er cent dividend on th e deposit claim s ag ain st th e H udson State Bank, H ud son, South Dakota. “A n u n u su al featu re of th e liquida tion of this b ank is th e fact th a t liqui dation earnings since the suspension of th e b ank have exceeded expenses of liquidations, including taxes on real estate, and all o th er item s of expense connected w ith th e liquidation of the b ank,” H augo said. The H udson b ank w as suspended in July, 1938, and deposits a t th a t tim e w ere $208,698.41. Reward Employes Em ployes of th e F irs t N ational B ank and T ru st Company, Sioux Falls, re ceived th e equivalent of one-half m o n th ’s salary as a C hristm as gift, the b a n k ’s directors announced. In voting to rew ard th e employes, th e directors said the gifts w ere “in appreciation of th e ir loyalty and serv ice du rin g th e last year. “T his is th e 56th C hristm as an n i v ersary of Sioux F a lls’ oldest bank, and it is in terestin g to note th a t the total of th e gifts this y ear is approxi m ately as large as th e en tire yearly salary of all em ployes in 1885, th e year th e b ank w as organized,” said the an nouncem ent. Stock Retired R. E. Driscoll, presid en t of th e F irs t N ational B ank of the Black Hills, an nounced re tire m e n t of the in stitu tio n ’s $300,000 in p referred stock. The stock w as tak en out in 1933 by th e group of H ills banks w hich in Octo ber, 1938, consolidated to form the F irs t N ational B ank of th e Black Hills. R etirem en t of th e p referred stock w as m ade possible th ro u g h accum ulation of recoveries and earnings d uring th e p ast few years. D eposits of the bank, totaling $9,500,000 at th e tim e of th e consolidation, have now m ounted to $10,700,000, D ris coll said. N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January 1941 46 • SO U TH The in stitu tio n ’s capital to tals ap proxim ately a m illion dollars, includ ing $500,000 of com m on stock, $325,000 surplus, and $125,000 in undivided p ro f its and reserves. Directors Meeting T he reg u lar m eeting of th e directors of th e B ank of K im ball w as held at K im ball recen tly w ith th e follow ing directors in attendance: M. P lin Beebe and Lloyd C ronholm of Ipsw ich, L. M. D A K O T A N EWS L arsen of W essington Springs, Mrs. J. H. D rips of G ann V alley and R. A. Jo h n son of Kimball. L E G A L DEPARTM ENT (C ontinued from page b an k to give th e bonding notice w ith in th e tim e lim it date of th e observance of picious acts? No. 16) com pany from th e th e sus A p rovision of a fidelity bond The First N a tio n a l B ank o f C hicago Seventy'Seventh Annual Statement, December 31, 1940 Cash and D u e from B a n k s ,................................................... $ 4 3 9 ,7 8 2 ,4 8 3 .9 5 U n ited States O b ligation s—Direct and fully Guaranteed, U n p l e d g e d , ......................................... $ 3 1 5 ,3 1 1 ,3 6 4 .6 9 P led ged — To Secure Public Deposits and Deposits Subject to Federal Court Order, 4 2 ,4 0 4 ,3 1 4 .7 1 To Secure Trust Deposits, 4 3 ,9 8 4 ,8 9 5 .0 6 Under Trust Act of Illinois, . 5 2 3 ,5 8 2 .9 8 4 0 2 ,2 2 4 ,1 5 7 .4 4 , O ther B on d s and Securities, • • . 8 0 ,6 9 1 ,6 1 3 .4 4 Loans and D isco u n ts, . • 3 0 1 ,5 9 2 ,1 2 7 .2 4 R eal Estate (B a n k B uilding), . 5 ,3 9 9 ,1 7 6 .9 9 O ther R eal Estate, • 9 6 7 ,0 5 4 .3 6 Federal R eserve B an k Stock, . . C ustom ers’ Liability A cc o u n t o f A ccep tan ces, Interest Earned, n o t C ollected , « O ther A ssets, . . . . . . 2 ,1 0 0 ,0 0 0 .0 0 2 ,4 0 6 ,2 1 2 .4 3 2 ,9 8 9 ,8 0 8 .3 4 1 3 9 ,2 9 2 .8 9 $ 1 ,2 3 8 ,2 9 1 ,9 2 7 .0 8 LIABILITIES C apital S tock —C o m m o n , Surplus F und, . . . . O ther U n d iv id e d Profits, D iscou n t C ollected but n o t Earned, D ivid en d s D eclared, but U n p a id , R eserve for T axes, etc., Liability A cco u n t o f A cceptances, T im e D eposits, . . . . D em and D eposits, .$ 3 0 ,0 0 0 ,0 0 0 .0 0 4 0 ,0 0 0 ,0 0 0 .0 0 2 ,4 8 5 ,6 4 0 .3 6 6 2 3 ,8 8 7 .9 2 7 5 0 ,0 0 0 .0 0 2 ,2 7 0 ,8 5 5 .6 7 2 ,7 3 4 ,9 2 9 .4 6 $ 1 8 6 ,9 5 2 ,0 5 2 .3 8 8 9 8 ,3 8 8 ,7 9 4 .3 6 D eposits o f P u b lic F unds, 7 4 ,0 8 4 ,1 1 2 .0 5 1 ,1 5 9 ,4 2 4 ,9 5 8 .7 9 L iabilities oth er than th ose above stated, 1 ,6 5 4 .8 8 $ 1 ,2 3 8 ,2 9 1 ,9 2 7 .0 8 N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19 k l • requ iring an obligee to giv e notice of lo ss Avithin a certain tim e after the d iscovery of a lo ss does not require it to inform th e su rety of a m ere su sp i cion of d ish on est conduct on the part of an in sured em ploye. B row n, an Indiana banker, en tered into a w ritte n agreem ent w ith a m ill ing com pany w h erein he agreed to sell and th e m illing com pany agreed to buy 500 “bags” of seed. The con tra c t did not specify how m any b u sh els each bag should contain and th ere w as no trad e custom or usage reg ard ing th is featu re of th e contract. The m illing com pany refused to go through w ith th e deal, contending th a t th e con tra c t w as not definite. The b an k er sued. Could he recover? No. A m em orandum m ust g iv e all of the essen tia l term s of the contract of the parties in order to be binding. In th is connection it has been held th at one of the essen tial term s of such a contract is the quantity of th e goods sold. A ccordingly, w h ere th e term s used in a m em orandum to sp ecify the q uan tity are u ncertain and indefinite, it has been held that the contract is invalid. In a recent decision the In d i ana Suprem e Court held in a case in v o lv in g su b stan tially the sam e facts as those ou tlined in the q uestion that the term “b ags” Avas so indefinite that the contract Avas not Aralid. W ard m ortgaged certain live stock to a M issouri bank. Included in the m ortgage w as a provision to th e effect th a t AVard also m ortgaged “an y live stock th a t he m ight th e re a fter acquire w ith m oney fu rn ish ed un d er th e m o rt gage.” T he live stock had certain progeny w hich cam e w ith in the quoted provision of th e m ortgage. The bank, how ever, did not take posses sion of them or specifically include them in a supplem ental m ortgage, and AVard sold th em to F ine w ho had no know ledge of th e m ortgage tra n sa c tion. Did F ine obtain a title free and clear of any lien by th e bank? Yes. W here a m ortgagee does not take p ossession of after acquired prop erty upon its acq u isition by th e m ort gagor or take a su pp lem entary m ort gage thereon before the rights of an in n ocen t third party have attached, p rovisions sim ilar to those outlined in the question aaTII be held void as to such in nocen t third parties. 47 nam ed N o rth w estern State B ank of Ulen. It is expected th a t the closing of th e b ank at L o ck h art w ill be com pleted as soon as possible and a rra n g e m ents m ade for its rem oval to Ulen. The form er F irs t N ational B ank building at U len w ill be used for the new b ank and the building is u n d e r going th e necessary im provem ent for occupancy. M IN N E S O T A NEWS K. O. SATTRE President Blue Earth New President A lb ert K aiser, w ho has been at th e head of th e seed and feed loan office in L ittle F alls for th e p ast tw o years, has left to becom e p resid en t of th e F irs t N ational B ank of Bagley. He will succeed his fath er, A lbert K aiser, Sr., w ho died recently. B efore tak in g a position w ith th e seed and feed loan ad m in istratio n , Mr. K aiser w as em ployed in th e b an k for five years. To Blooming Prairie A rnold L. F osten so n of O w atonna has been nam ed executive vice p resi dent of th e F irs t N ational B ank of Bloom ing P rairie, and w ill assum e duties J a n u a ry 15th. Now a re p re se n ta tiv e of th e F ederal L and B ank, Mr. F o steson has about tw en ty y ears of b an k in g experience. He w as form erly w ith th e B ank of N orth D akota at Bism arck. In 1933 he began w orking for th e F ed eral L and B ank of St. P au l and w as for som e tim e em ployed in th e new loan division. He w as a m em ber of th e loan com m ittee. In 1936, w hen th e b an k decentralized, he w as se lected to sup erv ise settin g up group offices. R ecently he has been in charge of th e F ed eral L and B ank in te re sts in th e tw e n ty so u th east counties of M in nesota. Joins Buffalo Bank The Buffalo N ational B ank has filled the vacancy in its staff caused by th e resig n atio n of H en ry Wolff w ith th e ap p o in tm en t of Vance W eaver of M or ton, M innesota, as a ssista n t cashier. Mr. W eaver sta rte d his b an k in g ca re e r in C larem ont, South D akota, his birthplace, tra n sfe rrin g from th e re to the F a rm e rs S tate B ank of M orton some y ears ago. Dies in Rushmore W ell wood R. McLeod, 64 y ears old, died at his hom e in R ushm ore. The form er m ayor and school board m em ber w as vice p resid en t of th e F irs t W ILLIAM DUNCAN, Jr. Secretary Minneapolis S tate B ank and principal m em ber in th e Thom-McLeod L um ber business and h ard w are store. Smith Resigns C om pleting nearly 37 y ears of serv ice w ith th e A m erican N ational Bank, St. Paul, P. A. F. Sm ith, cashier, an nounced his resignation, effective De cem ber 31st, and re tire m e n t from the b an k in g business. Mr. Sm ith en tered em ploym ent at th e b ank as a m essenger boy in 1904, a sh o rt tim e afte r it had sta rte d oper atin g u n d er a national c h a rte r w ith its p resen t nam e. He advanced th ro u g h m any dep artm en ts u n til his election as cashier tw elve y ears ago. H is resignation, Mr. Sm ith said, will leave him free to devote him self to several p riv ate business in terests here. He and Mrs. Sm ith w ill leave for a m o n th ’s v isit in Miami, Florida, about m id-January. Improvements M odernization has been tak in g place in th e banks at E lk to n and Adams w ith th e im provem ents being the new est in banking. The old cage type of w indow has disappeared and m odern counter-like w indow s have been in stalled. L ighting and decorating im p rovem ents have also been made. In charge of th e E lkton bank is H ans Schneider and N. V. T orgerson m an ages th e A dam s bank. Cashier Dies Services w ere held in Sleepy Eye for Jo h n W. Hass, 51, form erly of Clara City, M innesota, w ho died in the hom e of his bro th er, A lbert F. Hass. B orn in New Ulm, he had been cashier of th e Clara City State Bank, Clara City, M innesota, before tak en ill. Moved to Ulen The application for c h a rte r from L o ck h art b an k headed by A. J. been approved by the departm ent. The new a tra n sfe r of to Ulen of the A nderson has state banking bank w ill be Quarters Improved Com fort and convenience for its custom ers w ere forem ost in th e m inds of N o rth w estern F ederal Savings & L oan A ssociation officials w hen th ey designed th e recently im proved offices a t 823 M arquette avenue, M inneapolis, in th e F oshay Tow er ground floor lo cation. As now situ ated th e in stitu tio n has one of th e largest as w ell as one of th e m ost handsom ely-appointed offices in th e T w in Cities. Mrs. D. E. C rary Mudd, a ssistan t to th e m anager, in charge of public relations and new business d ep art m ents, occupies the fro n t desk in th e office, w hile those of th e o th er ex ecutives are arran g ed along th e far w all as the room is entered. John W . W elch Dies Jo h n W. W elch, 77 y ears old, resi dent of La Crescent, M innesota, all his life, died in La Crosse, W isconsin. He w as in th e contracting business in M innesota and W isconsin and w as p resid en t of th e La C rescent State Bank, pro m in en t in Masonic affairs, and w as recently presented w ith a 50-year m em bership pin by th e La C rescent M asonic lodge. Heads Group E. P. H um m el, cashier of th e F irs t and F a rm e rs N ational B ank of Blue E a rth , w as elected p resident of the Blue E a rth Valley C learinghouse As sociation, an organization of Blue E a rth and F a rib a u lt county b ank staff m em bers, a t the an n u al m eeting. H um m el succeeds E. W. T olzm ann of M innesota Lake, p resident d uring the p ast year. O ther officers elected are W. F. Borchardt, cashier of th e F irs t N ational B ank of M apleton, vice president, and M. J. Jones, cashier of th e Cam bria State Bank, secretary. A pproxim ately 60 m en w ere p resen t for th e d in n er and m eeting. Speakers w ere F. A. A m undson, S tate Commis sioner of B anks, L. A. Hill, A cting Re gional D irector of th e AVage and H our Division, and W illiam D uncan, Jr., secretary of th e M innesota B an k ers’ Association. N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January 19 'il 48 Dies in Belgrade Jo h n W. K oetter, born Ja n u a ry 1, 1870, on a farm n ear R ichm ond, and for m any y ears associated w ith banks at Belgrade, died recently. Mr. K oetter atten d ed St. Jo h n s U ni v ersity and later w orked in th e county tre a s u re r’s office. He w en t to Belgrade as cashier of th e B ank of Belgrade and a few y ears later re tu rn e d to St. Cloud w h ere he w ent to w ork for the McCor m ick H arv ester Company. In 1908, he w en t back to B elgrade as cashier of th e N o rth A m erican S tate B ank and in 1916 sta rte d th e S tate B ank of Bel grade w hich later consolidated w ith th e N orth A m erican Bank. A t th e tim e of his death he w as em ployed by the N o rth A m erican S tate Bank. STATEM ENT OF C O N D IT IO N A t the Close of B usiness D E C E M B E R 31, 1940 Remodel at Bank RESOURCES The F a rm e rs and M erchants State B ank, R ushton, began an in terio r re Vaults and Fixtures_________________ 15,322.71 m odeling p roject w hich includes new Other Assets ---------------37,452.31 w indow sashes, rem oval of the inside U. S. Gov’t. en tran ce to provide an enlarged lobby, B o n d s ___$1,099,677.83 and in stallatio n of V enetian w indow Other Bonds blinds. Loans and Discounts____ $2,738,604.55 c u r itie s__ 507,879.28 Cash and Due from Banks 3,327,535.36 4,935,092.47 TOTAL ___________ $7,726,472.04 LIABILITIES Capital Stock—Common_$ 250,000.00 Surplus _______________ 250,000.00 Reserves and Undivided P ro fits____ 50,473.21 Other L iab ilities_______ 19,947.62 Deposits ---------------------- 7,156,051.21 TOTAL ___________ $7,726,472.04 OFFICERS J. F. R ing land .................... P resident J. C. M oore!........ .........Vice P resident A. A. B ib u s ...... Vice Pres, and Cash. J. M. K a n e ....................... A sst. Cash. J. G. McGarraugh ...........A sst. Cash. C. W. Messenger ........... A uditor County Meeting M em bers of th e Le Sueur C ounty B an kers A ssociation gath ered a t Le C enter for a dinner, general business discussion, and social visitation. Officers elected for th e ensuing y ear w ere Mr. R adem acher, W aterville, president; C. E. M eislahn, Cleveland, vice president; Wm. Kozel, M ontgom ery, secretary treasu rer. C. C. Traxler, of Le Center, w as th e re tirin g president. Vice President Dies R obert Dick of Le Roy, vice p resi d en t of th e F irs t S tate Bank, died re cently in th e New H am pton, Iowa, hos p ital follow ing an operation. He w as 71 y ears old. He w as b o rn n ear M onticello, Wis., May 19, 1869, and in 1892 he m oved to a farm so u th east of Le Roy, w here he resided u n til 1910, w hen he purchased a farm a m ile n o rth of th e village, w h ere he resided u n til about 20 years ago w hen he m oved to Le Roy. Thayer Dies STOCK YARDS NATIONAL BANK SOUTH ST. PAUL, MINNESOTA Member Federal Deposit Insurance Corporation N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January Î941 Jo h n V an B uren T hayer, w ho a t the tim e of his re tire m e n t from th e Cen tra l H anover B ank and T ru st Com p an y in July, 1938, h ad com pleted 66 y ears of continuous service w ith th a t com pany and its predecessors, died last m onth at th e age of 88. Mr. T h ay er joined th e U nion T ru st Com pany staff on his 20th birthday, Ja n u a ry 15, 1872, and w hen th a t in sti tu tio n m erged w ith th e C entral T ru st Com pany in 1918 w as senior vice presi dent. He continued to tak e an active p a rt in th e m anagem en t of th e C entral U nion and, later, th e C entral H anover. N O RTH D A K O T A HITS N EW H IG H (C ontinued from page D airy P roducts and Increased in v en to ries . Beef products and Increased inventories Sheep an d wool Hogs ............................ P o u ltry and products 20) 26,602,975 33,483,150 7,049,730 9,792,000 10,803,080 Total liv e sto c k ......................$ 87,730,135 TOTAL FARM INCOME $235,759,349 The nu m b er of livestock on farm s Ja n u a ry 1, 1941, show s a h ealth y in crease from a y ear ago—cattle from 1,337,000 to 1,443,900, sheep from 915,000 to 960,000. Hogs, now largely breeding stock, show a slight decrease, from 472,000 to 430,000, as com pared w ith 1939, a y ear th a t saw a 47 per cent increase in th e hog population. The drop w as due to early m ark etin g because of b ettered m ark etin g conditions. A one p er cent increase in th e size of litters saved w as show n for th e 1940 spring and fall crops of pigs. Total hog production for the year, 900,000 head. P re se n t indications are th a t th e n um ber of sows kept on farm s in 1941 w ill equal th e total for 1940 or w ill be increased if h ig h er prices prevail betw een now and M arch 1. “D uring the p ast th ree y ears N orth D akota has m ade rem ark ab le strides in reh ab ilitatin g th e livestock in d u s try , and today th e livestock popula tion n early equals th a t for th e period p rio r to th e d ro u g h t y ears of 19341936,” th e GNDA re p o rt says. H ow ever, N orth D akota’s livestock in d u stry is im m easurably im proved today over th e pre-drought period be cause of im proved q uality in herds and flocks. Only th e finest breeding stock w as retain ed du rin g th e sh o rt feed crop years. T he 10-year low for th e n um ber of cattle w as reached Ja n u a ry 1, 1938, w hen th e count w as a t 1,190,000. By Ja n u a ry 1, 1940, th is had grow n to 1,337,000, and a handsom e increase is expected for th e in terv en in g year, w ith m ark ets rep o rtin g good calves being retain ed on farm s and a m arked increase in grazing in th e w estern p a rt of th e state. 49 STATEMENT OF CONDITION OF First National Bank and Trust Company o f Minneapolis as at December 31, 1940 ♦ R esources Cash on Hand and Due from Banks . U. S. Government Bonds (Direct or Fully G uaranteed)....................................... Guaranty Fund (U. S. Bonds with Commissioner of Banks) Loans and D isc o u n ts............................... Other Bonds and Securities O v e r d r a f ts ............................................... Bank B u i ld i n g s ....................................... Customers’ Acceptance Liability Bankers’ Acceptances Purchased Interest Earned but not Collected * • $73,383,077.65 51,783,000.00 600,000.00 42,598,889.06 7,436,357.08 10,208.30 648,633.68 648,873.25 384,000.00 364,780.43 $177,857,819.45 L ia b il it ie s Capital S t o c k ....................................... S u rp lu s....................................................... Undivided P r o f i t s ............................... Reserve for Interest, Expenses, Taxes, etc. Interest Collected but not Earned Letters of Credit and Acceptances D e p o s i t s ............................................... . , , ¿ . * . $ 6 ,000 ,000.00 6 ,000 ,000.00 2,725,473.27 1,039,903.31 169,480.14 648,873.25 161,274,089.48 $177,857,819.45 U. S. Government Obligations and other securities carried at $21,790,229.67 in the fore going statement are deposited to secure Public Funds and for other purposes required by Law. M em ber Federal Deposit Insurance Corporation A f f i l i a t e d w ith f i r s t b a n k s t o c k c o r p o r a t i o n N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January 19 ft 50 T w in C it y N e w s AN K ERS from all principal cities in th e N in th F ed eral R eserve Dis tric t assem bled in M inneapolis last m on th to discuss financing of th e fed eral defense program and th e plans of th e A m erican B ankers A ssociation to co-operate in th is w ork. The m eeting w as called by Shirley S. Ford, p resid en t of th e N o rth w estern N ational B ank & T ru st Co. and N inth D istrict m em ber of a special A. B. A. defense financial com m ittee. A pproxi m ately 60 b an k ers attended. “The A. B. A.,” Mr. F ord said, “is taking a leading p a rt in m obilizing the financial resources of th e co u n try B A location in the center of d o w n to w n district, w ith shops an d am u sem en ts n e a rb y , at tra c ts t r a v e le r s to th is fin e hotel - w h e re th e y in v a ria b ly enjoy the com fortable acco m m o d a tio n s , th e fin e fo o d in th e C o ff e e S h o p , a n d th e s u p e r io r s e r v ic e . G a r a g e se rv ice . A ll ra te s re a so n a b le . W IT H O U T , B A TH 50 LUP BA TH l 4 th S T R E E T A T H E N N E P IN N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Speci al Cor r es pondent in su p p o rt of th e defense program . The b anks of th e U nited States w ill be able to finance th is g reat defense program to a m ajor degree if they know w h at is required, how th e banks can be secured, how to take ad van tage of th e new A ssignm ent of Claims law and w ith w hom th ey are to deal.” He review ed conferences in W ash ington, atten d ed by th e A. B. A. com m ittee, the F ederal R eserve Board TRAVEL TREND THE V By Jam es M. Sutherland A . W . STAD E M anager January Í9M A and m em bers of the defense com m is sion. B oth th e board and th e com m ission, he told the N inth D istrict bankers, are in terested in seeing th a t p riv ate banks do a large p a rt of th e defense in d u stry financing and th a t a m inim um of such funds be m ade available by g overnm ent agencies. The b u lletin recently issued by th e A. B. A. on defense financing w as ex plained, after w hich Jo h n N. Beyton, presid en t of th e M inneapolis F ederal R eserve B ank explained th e organiza tion of th e b a n k ’s new in d u strial co ordination departm ent. T his d ep artm en t w as explained in m ore detail by H. C. Tim berlake, re serve b ank statistician w ho has been nam ed its m anager. Purpose, he said, is to p u t th e arm ed services in touch w ith those desirous of bidding on de fense contracts, fu rn ish such prospec tive bidders inform ation th a t w ill en able them to m ake bids, and see th a t p roper financing for successful bidders is secured, if needed. H. G. M cC onnell of th e F ederal Re serve B ank and F. C. O’B rien of N o rth w estern N ational B ank dem onstrated how a sam ple loan m ig h t be discussed in a co u n try bank. All ban k ers p resen t expressed th em selves as eager to do th e ir patriotic d uty and to p u t p riv ate funds to w ork in th is program . F . E. Crabb, p resid en t of In v estors Syndicate, w as one of th e principal speakers at a land planning confer ence held in M inneapolis u n d er spon sorship of th e F ed eral H ousing A d m in istration. He spoke on “R elation of FH A to In v estm en t O rganizations.” J. A. M urphy, a ssistan t cashier, F irst N ational B ank & T ru st Co., and H. E. B ergq uist, a ssistan t cashier, N o rth w estern N ational B ank & T ru st Co., w ere am ong a delegation of Minne- 51 apolis leaders m ak in g a good-will to u r to th e su g ar beet factory a t Chaska, Minn. T our w as sponsored by th e M inneapolis Civic & Com m erce A s sociation. S t a t e m e n t o f C o n d itio n O liver S. P ow ell, first vice president, M inneapolis F ed eral R eserve B ank, has been nam ed to th e advisory coun cil for th e new regional business r e search statio n set u p at th e U n iv er sity of M innesota by th e u n iv e rsity and th e U. S. D ep artm en t of Com m erce. T h e f ir s t o f J. P s a in t b a n k a u l as o f a ssista n t vice p resid en t of N o rth w est B ancorporation, M inneapolis, has ta k e n over his new d uties as vice p re sid e n t an d cashier of F irs t N ational B ank, W a basha, M inn. F ellow w o rk ers gave him a farew ell p a rty and p resen ted him w ith a shotgun. A dolph n a t io n a l Doffing, D ecem ber J I , 19 4 0 R esources $ 8 1 ,8 0 3 , 5 7 1 . 7 7 Cash on H and and Due from Banks The N ational A ssociation of B ank Supervisors w ill hold its 1941 con vention in St. Paul, according to F. A. A m undson, M innesota com m issioner of banks. D ate has not been set, b u t it m ay be in Septem ber. R oy O verm ann of F irs t T ru s t Co., St. Paul, w as ch airm an of th e e n te r ta in m e n t com m ittee for a sm oker staged by th e St. P aul chap ter, A m eri can In stitu te of B anking. Added to th e M inneapolis h e a d q u a r ters staff of N o rth w est B ancorporation are A loysius R. W einhandl, fo r m erly vice p re sid e n t and cashier of th e F irs t N ational B ank, M andan, N. D., and W illiam H. N etland, cashier of A ustin S tate B ank, A ustin, Minn. D irectors of th e M inneapolis F e d eral R eserve B ank have elected Rym an E. W akefield, p re sid e n t of F irs t N ational B ank & T ru st Co., to th e federal advisory council of th e F ed eral R eserve system , effective J a n u a ry 1. As th e m em ber of th e council from th e N in th F ed eral R eserve Dis tract, Mr. W akefield succeeds John Crosby, M inneapolis. 2 1 , 1 5 7 ,8 0 9 .6 6 U. S. Governm ent Securities Bonds and Securities 4 ,4 2 0 ,6 5 2 .6 3 Loans and Discounts 5 7 ,2 1 4 ,3 2 6 .1 6 2 0 3 , 5 5 2 .6 9 Interest Earned but not Collected C ustom ers’ Liability on Account of Acceptances, Letters of Credit and Foreign Bills 6 7 ,0 9 8 .5 0 3 6 0 ,0 0 0 .0 0 Stock in Federal Reserve Bank 3 ,0 0 0 ,00 0 .0 0 Bank and Office Building $ 1 6 8 ,2 2 7 ,0 1 1 . 4 1 L iabilities $ 6 ,0 0 0 ,0 0 0 .0 0 C apital Stock Surplus 6 ,0 0 0 ,0 0 0 .0 0 Undivided Profits 1 , 5 4 2 , 13 2 -7 2 Unallocated Reserves for Losses 8 1 3 , 5 7 5 .8 1 Reserve for Accrued Taxes, Interest and Expenses 6 2 1 ,2 7 5 .0 7 Reserve of M anufacturers and Others on Notes purchased from them 5 7 3 ,7 2 5 .0 2 Discount Collected but not Earned 77,921.55 6 7 ,0 9 8 .5 0 Acceptances, Letters of Credit and Foreign Bills 1 5 2 , 5 3 1 ,2 8 2 .7 4 Deposits $ 1 6 8 , 2 2 7 ,0 1 1 .4 1 vice president, N o rth w e ste rn N ational B ank & T ru st Co., has been elected tre a s u re r of th e M inneapolis Civic Council. Clarence E. H ill, P resident Richard C. Lilly , C hairm an B oard o f Directors A n o th er N o rth w e ste rn N ational B ank vice president, John B u rgess, has been nam ed ch airm an of th e p u b licity com m ittee of th e 1941 M inne apolis A quatennial, to be held Ju ly F rederic R. Bigelow Member Federal Deposit Insurance Corporation 12 - 20 . A. S. N ew com b, vice p resid en t of Bloom ington-Lake N ational https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis AF F I L I AT E D WI TH F I RS T BANK STOCK CORP ORATI ON B ank, Northwestern Banker January 1941 52 • M I N N ESOT A M inneapolis; R. O. Thayer, vice p re si dent, F ifth N o rth w e ste rn N ational Bank, and M alcolm B. M cDonald, g en eral counsel of F irs t N ational B ank & T ru s t Co., rep resen ted th e M inne sota Safe D eposit A ssociation in a dis cussion of safe deposit p ractices before a m eeting of th e A rro w h ead C learing house A ssociation in D uluth. A tten d in g a m eeting in Chicago called by th e A ssociation of R eserve City B an k ers to discuss financing th e n atio n al defense pro g ram w ere Shir ley S. Ford, president, and W illiam N. Johnson, vice p resident, N o rth w est ern N ational B ank & T ru st Co.; L y m an E. W akefield, president, an d V. F. R otering, vice president, F irs t N a tional B ank & T ru st Co.; A rn u lf Ueland, vice president, M idland N a tional B ank & T ru st Co., an d Julian B. Baird an d P hilip L. Ray, vice p re si dents, F irs t N ational B ank of St. Paul. F ran cis A. C ham berlain, 85, ch a ir m an of th e executive com m ittee of F irs t N ational B ank & T ru st Com pany, and a leading figure in n o rth w est ban k in g circles for years, died D ecem ber 17th a t his hom e in M in neapolis. N E W S * B orn in Bangor, Maine, he started his banking career at 22 w hen he be cam e a collector for th e old M erchants N ational B ank of M inneapolis. In 1880 he joined th e old Security B ank as clerk, an d w as m ade a ssistan t cashier in 1882, d irector in 1886, cash ier in 1887, and p resid en t in 1892. The b an k becam e S ecurity N ational B ank in 1907 and in 1915 w as consoli dated w ith th e F irs t N ational to form F irs t and Security N ational Bank. Mr. C ham berlain served as its president u n til 1917, w hen he becam e chairm an of th e executive com m ittee. C onstruction w as slated to s ta rt J a n u a ry 2nd on th e new hom e of F arm ers and M echanics Savings Bank at Sixth stre e t and M arquette avenue, th e board of tru ste e s having a u th o r ized th e project. The general con tract w as let to M ad sen C onstruction Com pany for slig h t ly less th a n $550,000. O ther contracts rem ain to be let. The new location is in the center of M inneapolis financial d istrict and close to th e m ain shopping district. T hree com m ercial banks are located w ith in a half a block of th e site, w hich adjoins th e M inneapolis F ed eral Re serve B ank building. T he building w ill consist of a p rin cipal b an king room having a m ain en tran ce on Sixth street, and extending th ro u g h to a five-story u n it adjoin ing th e reserve bank. The five-story u n it w ill house several dep artm en ts of th e bank, including th e m ortgage and school savings d ep artm ents. It w ill have a sep arate en tran ce on M ar quette. E x te rio r of th e building w ill be of stone, w ith g ran ite base and trim around th e entrance. The general design w ill be in m odernized classic style. D irectors of th e N o rth w est Bancorporation have elected J. B. F aegre, M inneapolis atto rn ey , to th e board to fill th e vacancy caused by th e death of W illiam A. D urst. D irectors also elected W . F. G raves, connected w ith Banco for ten years, to th e post of a ssistan t secretary. L aw ren ce B. W oodard of Woodard-Elwoocl & Company, M inneapo lis, has been nom inated as th e reg u la r candidate for th e board of gover nors of th e N ational A ssociation of Securities D ealers from d istrict No. 4, gpfe E mpire Na tio n a l Bank and T rust C om pany x S ' ST. P A U L , M IN N E S O T A Statem ent of Condition as of December 31, 1940 R ESO U R C ES Cash in Vaults, due from Federal Reserve Bank and other B a n k s.......................................................................... $ 4,065,134.78 United States Government Securities— Direct and Fully Guaranteed— Due within 3 y ea rs........................... 341,400.00 United States Government Securities— Direct and Fully Guaranteed— Due after 3 but within 5 years. . .212,250.00 United States Government Securities— Direct and Fully Guaranteed— Due after 5but within 10 y e a r s.. 301,825.00 United States Government Securities— D irect and Fully Guaranteed— Due after 10 but within 15 years. . 258,700.00 Municipal Bonds— Due within 3 y e a rs................................... 395,522.74 Municipal Bonds— Due after 3 but within 5 y ea rs............................................................................................ 116,120.80 Municipal Bonds— Due after 5 but within 10y ea rs........................................................................................... 79,870.44 Municipal Bonds— Due after 10 y ears..................................................................................................................... 5,000.00 Other Bonds and Securities...................................................................................................................................................... 192,739.50 Loans and D isco u n ts................................................................................................................................................................... 4,270,070.98 Stock in Federal Reserve B an k ............................................................................................................................................. 22,500.00 Interest Earned but N ot C ollected....................................................................................................................................... 25,292.90 Furniture and Fixtures and Safe D eposit V a u lts ............................................................................................................ 28,052.25 T O T A L R E S O U R C E S ...................................................................................................................$10,314,479.39 L IA B I L I T IE S Capital S to ck ................................................................................................................................................................................. $ Surplus ............................................................................................................................................................................................ Undivided Profits and R eserves............................. Reserved for T axes, Interest, and Accrued E x p en se....................................................................................................... Discount Collected but N ot E arned....................................................................................................................................... D eposits: D em and ................................................... ; . ................................................................................ $7,525,817.55 Time .............................................................................................................................................. 1,867,937.11 Total D ep o sits........................................ ................................................................................................................. 500,000.00 250,000.00 90,409.14 22,975.22 57,340.37 9,393,754.66 T O T A L L I A B I L I T I E S ................................................................................................................$10,314,479.39 ALEX. HIGHLAND, P r e s i d e n t M ember Federal D ep osit Insurance Corporation N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19M 53 • M I N N ESOT A com prising M innesota, M ontana and N orth and South Dakota. S tan ley G ates of S tanley Gates & Company, St. Paul; A lm on A. Greenm an of G reenm an & Cook, St. Paul, and E lm er L. W illiam s of AllisonW illiam s Com pany, M inneapolis, are nom inees for th e th re e posts on the d istrict com m ittee. N ew com m ittee and board m em bers are slated to take office J a n u a ry 16th. “C hanging C onditions in th e Con sum er C redit F ield ” w ere discussed by Jo h n B urgess, vice p resid en t of N o rth w estern N ational B ank & T ru st Company, a t a co n su m ers’ cred it con ference of th e Ohio B an k ers Associ ation in Colum bus, Ohio, in December. Some 200 g rad u ates of th e tra in in g course of th e St. P au l chapter, A m eri can In stitu te of B anking, w ere honor guests a t a d in n er given by th e St. P aul C learinghouse Association. F. H. D elan ey, vice p resid en t of F irs t N ational B ank, St. Paul, p re sided. C o n g ratu lato ry m essages w ere given th e g rad u ates by Ju lian B. Baird, vice president, F irs t N ational Bank; H. B. H um ason, president, A m erican N ational Bank, and H. W. Blake, vice president, E m p ire N ation al B ank & T ru st Company. P rincipal speaker w as J. O. C hristianson, su p e rin te n d e n t of th e U n iv ersity of M in nesota farm school. J. N. P eyton , p resid en t of M inneap olis F ed eral R eserve B ank, has re ceived th e acceptance from P. B. MeC lintock, cashier of th e F arm e rs N a tional B ank of Chinook, M ontana, of JAMIESON & C OM PA N Y Stocks Bonds Grain q Cotton Butter Eggs Commodity Brokers • Members N E W S - th e la tte r’s election as a director of th e reserv e b a n k ’s H elena branch. Mr. M cClintock w ill serve for a twoy ear te rm sta rtin g Ja n u a ry 1st. W om an (in subw ay): “I w ish th a t good-looking young m an w ould get up and give me his seat.” Six m en got up. Statem ent of Condition M ID LA N D NA TIO NA L BA N K A N D TR UST CO M PANY of Minneapolis ★ (December 31, 1940) D IR EC TO R S RESOURCES Cash and Due from Banks___________ $ 7,003,627.59 U. S. Government Securities_________ 4,149,152.33 State, County and Municipal Bonds__ 837,000.00 Other Bonds and Securities__________ 281,358.07 Loans and Discounts____ ___________ 9,790,956.91 Overdrafts _________________________ 1,145.12 Income A ccrued____________________ 40,620.71 Real E state_________________________ 57,938.19 Furniture and Fixtures______________ 50,733.27 Customers’ Liability on Letters of 2,519.47 Credit ___________________________ Minneapolis II. S. G RE G G C h a irm a n of B o a r d Gregg M anufacturing Company G. L. H E E G A A R D P r e s id e n t Mandan Mercantile Company W. C. H E L M V ic e P r e s id e n t C H A R L E S B. J O R D A N Jordan-Stevens Company E D G A R L. M A T T S O N P r e s id e n t LIABILITIES Demand Deposits __________________ $17,543,475.80 Time D ep osits______________________ 2,843,346.87 B E N C. M c C A B E P r e s id e n t McCabe Brothers Company P r e s id e n t International Elevator Company Total D ep osits____________________ $20,386,822.67 H. C L A Y M c C A R T N E Y T r e a s u re r Toro M anufacturing Company Reserve for Interest, Taxes and Other Expenses ________________________ Reserve for Unearned Income_________ Bank’s Liability on Lettersof Credit__ Capital Account: Common S to c k _____ $1,000,000.00 Surplus ____________ 500,000.00 Undivided P r o fits___ 157,059.06 62,489.93 106,160.53 2,519.47 W A L T O N R. M U R R A Y V ic e P r e s id e n t J. R. R A N D A L L P r e s id e n t Reserve Supply Company M A U R IC E SCH UM A CHER B uilding Contractor 1,657,059.06 $22,215,051.66 G overnment and O ther Bonds carried at $4,1 0 7 ,0 0 0 .0 0 are pled ged to secure public and trust fu n d s and fo r other purposes as required b y law. GEORGE J. SIIE R E R Minneapolis ARNULF UELAND V ice P r e s id e n t P A U L E. V O N K U S T E R P r e s id e n t, D avid C. Bell Investm ent Company J A M E S C, W Y M A N V ic e P r e s ., St. Anthony & Dakota Elevator Company O FFIC E R S E dgar L. Ma t t so n A k n ix l f U e l a n d ... Vice President W a l t o n R. M ttr r a y Vice President Ca l v i n W . A u r a n d - - - - Vice President W . E . B r o c k m a n V ice President L a w r e n c e O. O l s o n ............................... Cashier R o b e r t S. S t e b b i n s - - - A ssistant Cashier . e CHARLES C. RIEGER W. H. Barber Company AARON CARLSON P r e s id e n t a n d M a n a g e r and Other Principal Exchanges • ST. PAUL — MINNEAPOLIS Government — Municipal Corporation Bonds C h a irm a n of th e B o a r d Russell-Miller M illing Company 1,215,051.66 New York Stock Exchange • N. C. B E I M President V i c t o r W. M a s e r Asst. Cash, and Asst. Tr. Officer E. W a l t e r E n g s t r o m -A ssistant Cashier W il l ia m R. C h a p m a n -A ssistant Cashier E verett L. T h o m pso n - A ssistant Trust Officer C l i f f o r d C. S o m m e r -A ssistant Cashier Fra n k W . P eterso n - - - - - Auditor Manager Bond Department MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Minneapolis — Atlantic 8235 __ __________________________________ Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 54 R EG ISTR A TIO N S H O U LD BE REQ UIRED o N E hundred and fifty -e ig h t o f th e officers and em p loyees o f th is bank have been w ith us for m ore th an tw enty-five years. T hirteen o f th is group are m em bers o f our “F ifty Y ear Club.” T his is a record in w hich we tak e pride. And it is a record th a t concerns a ll o f our corre sp ond en t banks. E xp erien ced service is d ep en d able service. . . . THE . . . PH ILA D ELPH IA NATION AL BANK ORGANIZED 1803 PHILADELPHIA, PA. Capital, Surplus and Undivided Profits $43,000,000 Member of Federal Deposit Insurance Corporation (C ontinued from page 14) m ore closely th e individual cred it of th e issuer th a n previously, w h en tax exem ption over-shadowed, to some ex ten t, o th er factors.” T he firm expresses itself on th e now m uch discussed question of priv ate placem ents as follows: “P riv ate place m en t of new issues w ith in su ran ce com panies and bank s w ill no doubt continue to absorb a su b stan tial p a rt of new offerings u n til in v estm en t b an k ers—and th ro u g h them , th e in vesting public—are p u t in a position to com pete m ore evenly for such is sues. T his la tte r can b est be done by re q u irin g federal reg istratio n of all issues, both those p riv ately sold as w ell as those publicly placed. Since th e expressed purpose of reg istratio n is to p ro tect th e in v e stm en t of th e in d ividual’s surplus, it w ould appear th a t in stitu tio n al funds, being m erely an aggregate of individual funds, are en titled to th e sam e safeguards as those directly invested by th e ow ners. Looking to th e n ear fu ture, H alsey, S tu a rt & Co., Inc. have th is to say, “P rice tren d s depend in considerable degree on in te re st rates; in te re st rates in tu rn now depend largely on g o vern m en t controls. In view of th e heavy go v ern m en t borrow ing ahead, the probable continuation of lim ited de m and for p riv ate funds and th e en o r m ity of existing excess b an k reserves, it appears a reasonable expectation th a t easy m oney rates w ill continue and th e general price level w ill be well m aintained. A t th e sam e tim e, prices of top-grade issues are now so high th a t little, if any, fu rth e r advance ap pears probable in th a t classification. Secondary classifications m ay, how ever, show im provem ent as some of th e h eretofore retard ed lines or indi vidual com panies show an im proved status, p artic u la rly u n d er th e im petus of buying from q u a rte rs w hich m ight ord in arily be m ore attra c te d to th e equity m ark et.” “W e look for co n tinuation in th e re duced volum e of new offerings w hich has characterized th e bond m a rk e t for several years. Those w hich do appear w ill no doubt continue to be predom i n a n tly high grade in ch aracter and w ill consist, in su b stan tial p art, of re funding issues; as has been tru e for some tim e, th e y w ill be tak en p rin c i pally by in stitu tio n al b u y ers.” Spot Cash D aughter: “W h at is alim ony, m o th er?” M other: “I t ’s a m arried m a n ’s cashsu rre n d e r value, dear.” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 55 NORTH M ARTIN AAS President New Rockford D AKO TA NEWS C. 0 . WA TT AM Secretary Fargo Former Banker Dies Jo h n P. B errin g er, 77, fo rm er w hole sale m eat d ealer and b a n k e r a t D ickin son, N o rth D akota, died a t his hom e in Tacom a, W ashington. He w as one of th e organ izers of th e N ational B ank of D ickinson. New Bank T he N o rth w e ste rn S tate B ank, H ills boro, N o rth D akota, received its c h a r te r and opened for b u siness on Decem b er 16, 1940. T his b an k succeeds th e F irs t N ational B ank of H illsboro, w hich h as gone into v o lu n ta ry liqui dation. Receiver Dies F u n e ra l services w ere held in Bis m arck fo r P a tric k A. O’Keefe, d istrict m an ag er for th e sta te receiv er of closed banks, w ho died in a local hos p ital of h e a rt disease. The body w as ta k e n to H udson, W is consin, n e a r his boyhood hom e, for fu n eral services an d burial. A n ativ e of R iver Falls, W isconsin, O’Keefe cam e to N o rth D akota in 1896. Legislative Matters The com ing session of th e N o rth Da kota leg islatu re w ill convene on J a n u a ry 7th. T h ere are a n u m b er of m a t ters w hich w ill undo u b ted ly arise con cerning b anks and banking. T here are also un d o u b ted ly o th er m a tte rs in w hich b an k ers m ay have some sugges tions w ith referen ce to corrective leg islation. T he association office w ill appreciate an y suggestions from m em bers w ith referen ce to th e m atter. National Defense Loans A t a m eeting on D ecem ber 13th in M inneapolis, called by Shirley S. Ford, m em ber of th e N ational D efense Loan Com m ittee of th e A m erican B ankers A ssociation, ab o u t seventy-five b a n k ers from N o rth D akota, South D akota and M innesota w ere present. T he p u r pose of th e m eeting was, of course, th e discussion of th e n atio n al defense loan ing program . W hile it w ould n o t ap https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis p ear th a t th ere are m any in d u stries in N o rth D akota w ho w ill be seeking defense loans, if th ere are any in your com m unity w ho are equipped to m ake co n tracts w ith th e g overnm ent for any of th e m any articles w hich th ey are p u rch asin g in equipping th e arm y and navy, it is up to th e b an k ers to ren d er th em all possible assistance in connec tion w ith th e m atter. T he A m erican B ankers A ssociation has sen t out, in th e ir special b u lletin No. 82, published by th e B ank M anage m en t Commission, inform ation w ith referen ce to form s of co n tract and form s for assignm ents for th e protec tion of b anks in m aking loans. W hile m any concerns in N o rth Da kota are n ot in terested in direct gov e rn m e n t contracts, it is possible th a t th e y m ay be able to fu rn ish m aterials to o th ers w ho have such contracts. Retirement Plan F o r some tim e p ast P resid en t Aas h as been in terested in, and has been in v estigating, the feasibility of a b an k ers re tire m e n t plan to supplem ent the Social S ecurity System , w hich th e F ed eral g o v ernm ent has set up. The group banks have a system of th e ir own, and, of course, th ey are not interested. T here are, how ever, quite a n u m b er of independent banks in the sta te w hich at th e recen t group m eet ings signified th e ir in te re st in a propo sition of th is kind. U nder th e F ederal Social S ecurity Act probably th e ra n k and file of p resen t N o rth D akota bank em ployees would, upon retirem en t, ob ta in from th e F ed eral g overnm ent no m ore th a n $45 or $60 a m o n th upon a t tain in g th e age of 65 years. The y o u n g er section would, of course, re ceive som ew hat m ore b u t th e m axi m um am o u n t w hich a person can re ceive u n d er th e F ed eral Social Secu rity system is $85 per m onth. It has been definitely established th a t it is n ot feasible to establish such a plan am ong th e independent banks in N o rth D akota. It w as found, how ever, upon investigation, th a t th e New Y ork u p state b an k ers have already es- tablished a plan w hich is w orking suc cessfully, an d u n d er w hich th e y a re w illing to tak e in banks from o th e r states. The plan calls for a 4 p er cent contrib u tio n from th e em ployes and such percentage co n trib u ted on th e p a rt of th e b an k as th e b an k is w illing to contribute. T hey have option bene fits such as service re tire m e n t allow ance, disability re tire m e n t allow ance, death benefit, and provides th a t any em ploye leaving th e service m ay ob tain a full re tu rn of his co n trib u tio n s w ith interest. DIRECT M AIL W ILL M AKE FRIENDS (C ontinued from page 18) “If you have hitched y o u r prom o tion to som ething bigger th a n you are, if you have w on th e respect and the confidence of y o u r prospects by show ing them th ro u g h yo u r advertising th a t you are in terested in som ething m ore th an y o u r im m ediate profits w hen you s ta rt using direct m ail to personalize y o u r advertising, I th in k you w ill be am azed a t how m uch m ore effective y o u r direct m ail w ill be.” Money Management Booklet A new m anual en titled “P ersonal M oney M anagem ent” has been p re p ared by th e savings division of th e A m erican B ankers A ssociation and w as to be ready for d istrib u tio n by Ja n u a ry 1st, it is announced by Roy R. M arquardt, the division’s president, w ho is vice presid en t of th e F irs t N a tional B ank of Chicago. The m anual, in booklet form , is de signed to serve as a guide for wage earn ers in obtaining b e tte r control of th e ir incom e and expenses and serves also as a reference book for ban k ers in advising th e ir custom ers about p e r sonal finance. W hile th e m anual stresses th e im portance of personal budgets, it is n ot lim ited to th a t field alone. Divided into tw elve chapters, it deals w ith ex p en ditures for food, clothing, re n t and hom e ow nership, indebtedness, in dividual financial progress, savings, and efficient m anagem ent of income. T he booklet’s introduction, by A lbert W. Atwood, financial w riter, asserts: “M illions of m en and w om en are tra in e d to w ork effectively, b u t hard ly any one is tra in e d to spend to th e b est advantage. Countless individuals ru n th e ir personal finances in a w ay th a t w ould ru in any business because they have no stan d ard s of expense of sav ings. I t is for them p rim arily th e m an ual has been prepared, y et it can bene fit all w ho read it.” Northwestern Banker January 1941 56 MONTANA NEWS E T H E L W. W A LKER Secretary-Treasurer Helena R . D . MOUNTAIN President Conrad Reserve Director P. B. M cClintock, cashier of th e F a rm e rs N ational B ank of Chinook, M ontana, w as elected a directo r of the H elena b ran ch of th e F ed eral R eserve B ank of M inneapolis. He w ill serve for tw o y ears beginning Ja n u a ry 1st. C O N S U M E R CREDIT O P ER A T IO N S PROFITABLE (C ontinued from page 15) 10. Good m anagem ent at all tim es is im p o rtan t to consum er credit d ep art m ent. D uring critical tim es such as we are experiencing it is absolutely essential th ere should be no relax a Hardin Banker Dies tion of credit standards. A rth u r H. Roush, 71, H ard in b an k er In m aking in stallm en t loans ch a r an d public official, died a t a local hos acter and ability are probably the m ost pital recently. D eath w as believed due im p o rtan t qualifications, m ore so th an to a h e a rt ailm ent. th e secu rity in back of th e loan. Gen R oush w as a Big H orn county official erally speaking, you w ill not lose from organization of th e county in m oney on an honest m an w ith a job, 1913 u n til 1925. A fterw ard he served w ho borrow s w ith in his m eans. C har th e city of H ard in as city auditor, city acter and ability are probably m ore clerk and police judge. im p o rtan t in th e direct or personal He w as vice p resid en t of th e F irs t loans m ade by th e b an k th a n th e con N ational B ank of H ardin. su m er credit w hich originates from th e sale of an autom obile or equip m ent. In both cases th e ability to pay Dies In Glasgow R. M. Young, 62, Glasgow resid en t is n ecessary in order to m ake it pos for 32 y ears an d for m ost of th a t period sible for th e borrow er to fulfill his cashier of th e F irs t N ational B ank, contract. Besides ch aracter and abil died suddenly as th e re su lt of a h e a rt ity th ere are a few fundam ental rules w hich apply to in stallm en t loans. ailm ent. 1. The total debts of th e applicant Mr. Young w as b o rn in A lm onte, A ugust 26, 1878. As a young m an, he including th e loan applied for, b ut em ig rated from G retna, in Canada, not including m ortgage loans g en er A ugust 22, 1899. He w as em ployed for ally, should not exceed 20 p er cent several y ears in Neche, N o rth Dakota, of the app lican t’s salary. 2. G enerally th e m onthly paym ents th e n cam e to Glasgow in Septem ber, 1902. He w as first bookkeeper for the should not be m ore th a n 15 to 20 per Lew is-W edum Company. cent of th e m onthly salary. On F e b ru a ry 29, 1904, Mr. Young be 3. If th e b o rro w er is m arried, the gan w o rk as cashier of th e old B ank w ife should also sign. of V alley County, w hich later becam e 4. In our bank, we th in k it is advis th e F irs t N ational B ank. He continued able to try to tak e some kind of se as cashier u n til Ja n u a ry , 1937, w hen c u rity even if th e applicant has n o th he resigned. He h ad been a U nited ing to offer b u t an old car or house S tates citizen since 1908. hold goods. T he w ife should alw ays Besides his w o rk as cashier, Mr. sign in such cases on account of our Young had engaged in farm operations exem ption laws. L oans m ade on se and ow ned land both in th e Glasgow cu rity such as household goods m ay an d H insdale vicinities. ap p ear ridiculous; how ever, th ere is a good m oral effect. 5. T he borrow er should have some Bad Connotation “I w ish th e boys w o u ld n ’t call me life in surance as a protection to his fam ily and creditors. M any banks in Big Bill.” sist upon life in surance on unsecured, “W hy?” “T hese college nam es stick. And single-nam ed pap er or w here th e wife is th e co-signer. Life insurance to I ’m stu d y in g to be a doctor.” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19kl p rotect in stallm en t loans can be se cured from several life com panies. 6. W e have already m entioned co signers. T hey are not desirable. If you m ake a loan w ith co-signers they should fully u n d erstan d th e ir obliga tion th a t th ey m u st pay in case the principal m ak er does not. In connec tion w ith these loans, you m ight find th a t th ere are reciprocal co-signers. Fellow w o rkers w ill often sign for each other. 7. “T im e” is th e “essence” of an in stallm en t contract. U nless th is is thoroughly explained to the borrow er, he w ill not appreciate and u n d erstan d w hy he should m ake his m onthly pay m ents prom ptly on th e date agreed. If paym ents are not m ade prom ptly it is v ery im p o rtan t to y o u r collection system th a t you im pose penalties on delayed paym ents for th e purpose of im pressing upon th e borrow er th e im portance of p rom ptness and for th e purpose of tak in g care of th e addi tional expense in m aking collections. M any banks do not appreciate th e ef fect of charging penalties on delin qu en t paym ents. A large p a rt of th e trouble and aggravation in th e in stall m ent loan business is w ith delinquent borrow ers. The follow ing are some of th e types of loans w hich it is generally advisable to avoid: 1. Loans to fu rn ish all or m ost of th e capital to go into business such as grocery stores, service stations, etc. 2. Loans to co-m akers w ho are of the b o rro w er’s im m ediate family. 3. Loans to people w ho do not have reg u lar em ploym ent. It is preferable th a t th e applicant has been reg u larly em ployed by his firm for a t least th e p ast five years. 4. Loans to people w ho owe a large n um ber of accounts, th e consolidation of w hich w ould req u ire a loan beyond th e ir ability to pay. A loan to pay o th er debts is probably th e h ard est kin d of personal loan to make. 5. G reat care should be exercised in loaning to em ployes of political u n its or even federal em ployes w ho are elected or appointed. 6. T ruck paper, especially used trucks. 7. Balloon paym ents — w here th e dow n pay m en t is less th a n reg u lar am ounts. W e should be v ery careful to explain our rates fully to our applicants for loans. In stallm en t loans cannot be m ade a t c u rre n t com m ercial rates be cause th e re is considerable service necessary and num erous sm all item s involving considerable clerical w ork. The finance and personal loan com panies are generally subject to u n ju st (T u rn to page 74, Please) 57 IO W A N EW S H . R. YOUNG President A rlington Iowa Loans T hirty-tw o p er cen t of Iow a’s com m ercial b an k s m ade m ore th a n 296,000 loans to talin g $186,000,000 to business firm s and individuals th ro u g h o u t th e state d u rin g th e first six m o n th s of 1940, according to th e sem i-annual s u r vey of b an k lending activ ity m ade by th e A m erican B an k ers Association. T he su rv ey show ed th a t business firm s in th e state used only 58 p er cent of th e “confirm ed open lines of c re d it” m aintain ed for th e ir use on th e books of banks. A to tal of 24 b an k s in th e larg er cen ters of the state rep o rted th a t th e y carried on th e ir books $22,109,600 in “open lines of cre d it” offered to and k e p t available for re g u la r b o r row ers for use as needed by them . Of th is am o u n t $12,839,177 or 58.1 p er cent w as used. The average n u m b er of new loans m ade p er b an k d u rin g th e six m onths period u n d e r rev iew w as 972 and th e average size loan w as $566. T he average n u m b er of loans re new ed p er b an k w as 413 and th e a v e r age ren ew al w as for $708. The average n u m b er of new m o rt gage loans m ade p er b ank w as 13 and th e average new m ortgage m ade w as for $3,022. Annuity Plan E stab lish m en t of a re tire m e n t an n u ity plan for Iowa-Des M oines N a tional B ank and T ru st Co. employes, effective Ja n u a ry 1, w as announced re cently. H e rb e rt L. H orton, p resid en t of the bank, announced th e plan a t the b a n k ’s a n n u al C hristm as p a rty at Y ounkers tearoom . U nder th e plan, bank em ployes w ill be able to re tire at 65 w ith Dividend The N ew ton N ational B ank recently announced a sem i-annual dividend of 2% p er cent, equivalent to $2.50 a share, is being paid stockholders of th e bank for th e six-m onth period end ing D ecem ber 31, 1940. Officials described 1940 as a satisfac to ry y e a r in announcing th e dividend. E arn in g s of th e b ank are also being used to am ortize th e b an k building, fu rn itu re and fixture accounts, and the su rp lu s account of th e in stitu tio n has been increased. The capital stock fund of th e bank now totals $100,000; th e su rp lu s fund totals $44,000, and the undivided profits total $22,327.16. County Meeting Robbins Re-elected Col. C harles B. Robbins has been re appointed ch airm an of th e Des Moines F ed eral H om e L oan Bank. The term is one year. He w as also given a new term as public in te re st director. The Des M oines b an k now has re sources of m ore th a n $22,000,000 Col onel Robbins said. Its d istric t includes th e Dakotas, M innesota, Iow a and Mis souri. Its service to b uilding and loan organizations is sim ilar to th a t given banks by th e F ed eral R eserve Bank. Colonel R obbins w as first p resid en t of th e F ed eral Hom e L oan B ank w hen it w as organized in 1931 and for th e last eig h t y ears has been ch airm an of its board of directors. E. J. R ussell of St. L ouis has been reappoin ted vice ch airm an of th e Des Moines Bank. Of th is sum , $1,750,000 w as re tire d in 1936; $300,000 in 1938; $200,000 in 1939, and th e o u tstanding balance of $1,250,000 has been retired. W ith re tire m e n t of all p referred stock, th e bank, now in its sixty-fifth year has a capital stru c tu re of $2,500,000 in common stock; su rp lu s of $1,000,000; undivided profits and reserves of $741,359. M em bership in th e b a n k ’s Tw entyFive Year Club w as increased by th ree a t th e b an quet w hen H orton presented w atches to G ertrude Cantwell, M ary Cullen and F ay C. Davis, each of w hom du rin g th e last y ear com pleted 25 years of service w ith th e bank. T he bank now has 12 officers and em ployes w ith m ore th a n 25 y ears service. H E R B E R T L. H O R T O N a g u aran teed m onthly incom e for life. To establish re tire m e n t an n u ities for all w ho join th e plan, th e b ank each y e a r w ill in v est an am ount equal to th a t invested by th e employes, th ereb y sh arin g one-half the cost, H orton said. H o rto n also announced to th e 270 em ployes, officers, and directors at the d in n er th a t th e b ank recently has com pleted retirem en t of th e balance of $1,250,000 of p referred stock held by th e R econstruction F inance C orpora tion. C oncurrently w ith th e reduction in p re fe rred stock, th e b an k increased its com m on stock to $2,500,000 and su rp lu s to $1,000,000. In 1933, the R.F.C. purchased $3,500,000 of p referred stock of th e bank. O rval Spahn of M apleton, cashier in th e F irs t State Bank, Ute, w as nam ed presid en t of th e M onona Coun ty B ankers A ssociation a t th e ann u al m eeting held a t Soldier. He succeeds E a rl P ra tt of M oorhead. Jo h n R. W elch, also of th e F irst S tate Bank, w as nam ed secretary and tre a su re r to succeed H a rry M ortensen. R. J. Galloway of Soldier w as elected vice president. A . I. B. Course L. E. B illm eyer and D. F. W arnke atten d ed a m eeting of th e N o rtheast Iow a Study Group of th e A m erican In stitu te of Banking, w hich is a sec tion of the A m erican B ankers Associa tion, at W est Union. Subject of the evening’s m eeting w as th e p lanning and arran g em en t of a stu d y course for bankers. P rofessor L ukes of U pper Iowa U niversity has been engaged as instru cto r. O pening classes w ill be held at W est U nion and w ill m eet once each w eek for 21 w eeks since th e course w ill be th e equivalent of 42 ho u rs of class room w ork, w ith th e exception of accounting, w hich re quires 56 hours. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^1 C U L T IV A T IN G OUR G R E A T E S T FARM C R O P EVELOPING the farm men and For, important as other Iowa crops may women of Tomorrow is a vital re be, the most valuable products of Iowa farms And in this field, are the young men and young women who the work being done by 4 -H Clubs is es in a few short years will step forward to par pecially valuable. ticipate in, and eventually take over the direc sponsibility for Today. The record of 4 -EI Clubs is a record of tion of farms and farm homes. persistent progress, through good times and bad. In Iowa, the 4 -El organization has moved steadily forward, showing a gain in clubs and in club-membership. Recent enrollment figures show 1 8 11 4 -H Persistent progress, through good times and bad, has marked the growth of the Bankers Trust Company. Year after year, Clubs in the state, with a total of 26 ,9 27 it has moved steadily forward, constantly members. growing in resources, and in ability to de Since Iowa prosperity is rooted in the soil, Iowa bankers have a keen personal interest liver intelligent, constructive banking service to its customers. in progress of the 4 -H movement. W ith Among these customers are an ever-in counsel, with encouragement and often with creasing number of other Iowa banks, whom financial assistance, they have given strong we are happy to serve as Des Moines corre support to many 4 -H projects. spondent. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Photo courtesy of Successful Farming 6th and Locust Des Moines https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W hen high est health-aw ard winners are crowned at the N ational 4-H Club Congress in Chicago each D ecem ber, Iowa is usually w e ll represented in the picture. H ere’s the group of 1940 blue-ribbon finalists. At le ft is Venetta De W itt of M ilford, Iowa. To her le ft is Robert B olen of Laurens, Iowa. 60 • I OWA N E WS • Sioux C ity Clearings Banks of Davenport Im p ro v em en t of business conditions in Sioux City over last y e a r w as in dicated by th e an n u al b an k clearings rep o rt issued D ecem ber 31 by th e Sioux City C learing H ouse Association. F o r th e y e a r b an k clearings totaled $196,679,410.18, w hich w as $11,376,058.36 in excess of th e 1939 total, w hich w as $185,903,351.82. C learings in D ecem ber to taled $16,561,894.18 as com pared w ith $16,831,271.54 in D ecem ber of 1939, R esources of D avenport’s tw o b a n k ing in stitu tio n s total over $37,000,000, w hile th e ir com bined deposits am ount to m ore th an $34,000,000 as th e year 1940 ends. The D avenport B ank and T ru st Co. rep o rted deposits approxi m ated $30,000,000, and resources of m ore th a n $34,000,000, at th e end of a successful year. Surpluses of th e in stitu tio n w ere doubled du rin g th e past y ear w hen $800,000 w as tra n sfe rre d from accum ulated reserves. Loans of $13,000,000 w ere m ade to 8,000 individuals in 1940, including loans of th e personal and autom obile d ep artm en t w hich w as established a little over a y ear ago and is proving increasingly popular. Loans m ade in the eight and a half y ears since th e bank w as established total about $83,000,000, including a large n um ber of m ortgage loans. Some 30,000 custom ers have been served w ith loans th ro u g h th e period. Clearings of th e D avenport bank for 1940 totaled $295,707,491, a sub stan tial increase over th e $274,425,575 clearings in 1939. The F irs t T ru st and Savings B ank increased deposits m ore th a n h alf a m illion dollars in 1940, and now show s to tal deposits of $2,993,517, w ith total resources of $3,327,831. Loans during th e y ear aggregate $1,734,319, com pared w ith $1,196,302.28 in 1939. Clear ings w ere $15,863,423, an increase of approxim ately one m illion dollars over 1939. Heads Story Bankers S ta te m e n t of FIRST NATIONAL BANK IN SIOUX CITY D ecem b er 31, 1940 RESOURCES Cash and Due from B a n k s.................................................................$3,153,086.50 Loans and D isco u n ts.......................................................................... 2,529,401.11 U nited States Government B o n d s................................................... 659,114.55 State, County, and Municipal B o n d s............................................... 644,021.39 Other Bonds and Securities............................................................. 349,156.16 Stock in Federal R eserve B an k....................................................... 17,250.00 Bank Building, Furniture and F ix tu res........................................ 185,000.00 Other A ssets ......................................................................................... 2,872.20 $7,539,901.91 L IA B I L I T IE S Capital ........................................................................... $400,000.00 Surplus .......................................................................... 180,000.00 Undivided P r o f it s ......................................................... 20,652.71 Reserve for C ontingencies.......................................... 54,000.00 W illiam P etersen, a ssistan t cashier of th e S tory C ounty S tate B ank at S tory City, w ill direct activities of th e Story C ounty B ankers A ssociation in th e y ear 1941. He has been elected p resid en t suc ceeding T. E. LaVelle, cashier of the College Savings B ank a t Ames. J. Roger Alley, th e assistan t cashier of th e Ames T ru st and Savings Bank, is vice p resid en t and E. A. F aw cett, vice p resid en t of th e S tate B ank and T ru st Company, Nevada, secretarytreasu rer. Dividend T O T A L C A P IT A L A C C O U N T ........................................ $ 654,652.71 Reserve for T axes and In terest...................................................... 11,359.41 Other Liabilities ................................................................................... 117.00 D E P O S IT S ......................................................................................... 6,873,772.79 $7,539,901.91 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 More th a n 130 stockholders of th e U nited H om e B ank and T ru st Com p any living in M ason City and its v icinity are receiving 6 per cent divi dend checks as th e re su lt of th e b a n k ’s successful operations in 1940, E. W. Clark, ch airm an of th e board of direc tors, revealed. In addition to th e dividend paym ent, Mr. Clark said, a su b stan tial am ount is being left in th e reserves. New Addition IN S I O U X C I T Y Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19M E x tensive im provem ents are in progress on th e W ilton Savings B ank building. A n eight foot addition has been b u ilt on th e rear, a new fro n t w ill be erected and a reinforced concrete storage v au lt has been constructed in th e basem ent. N ew safety deposit and cash v au lts w ill replace th e old v au lt on th e m ain floor. 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 S ta te m e n t o f C o n d itio n DECEM BER 31, 1940 ASSETS C a s h _______________________________________ $ 9,765,693.99 U nited States Governm ent Securities_________ 13,311,566.28 M unicipal and O ther Tax-Exem pt B onds_____ 2,131,314.80 L o a n s ______________________________________ 9,110,588.86 Federal Reserve Bank Stock_________________ 54,000.00 F u rn itu re and F ixtures______________________ 25,012.86 Overdrafts _________________________________ 1,975.22 DIRECTORS E. P. ADLER P r e s id e n t L e e S y n d ic a te N e w s p a p e r s V. O. FIGGE E x e c u tiv e T ic e P r e s id e n t J. L. HECHT F ren ch a n d H e c lit, I n c . $34,400,152.01 J. M. HUTCHINSO N T r u s t Officer LIABILITIES CHARLES J. JOHNSON C apital ____________________________________ $ 600,000.00 Surplus ------------------------------------------------------ 1,200,000.00 Reserves and Profits________________________ 1,110,690.46 Deposits ___________________________________ 31,489,461.55 V ic e P r e s . I n d e p e n d e n t B a k in g Co. JOS. S. KIMMEL P r e s . R e p u b lic E le c tr ic Co. FREDERICK H. LAMB P h y s ic ia n H. E. LITTIG V ice P r e s . P e o p le s L ig h t Co. $34,400,152.01 HERM AN STAAK C a sh ier KUNO H. STRUCK V ice P r e s id e n t KARL P. TESKE T e sk e M illin g Co. CABLE G. VON M AUR DAVENPORT B A N K P e te r s e n -H a r n e d -V o n M a u r, I n c . T. J. W ALSH A N D T U UST/"T^xCOMPANV W a lsh C o n str u c tio n Co. C. D. W ATERM AN L a n e a n d W a te r m a n OilembfVL Jed& iaL DAVENPORT, tue S y i t e r n — IOWA m ¿ I N. N orthwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^1 62 • IO W A NEWS • The new fixtures w ill be of th e low type style and a flourescent lighting system w ill be installed. The w o rk is expected to be com pleted in about six weeks. Steady Growth Iow a banks show ed steady grow th du rin g 1940, state banking d ep artm en t figures indicated. F ro m Ja n u a ry 1, 1940, to th e end of June, th e period covered by th e last state b an k call, resources of 545 state banks rose from $466,000,000 to $486,000, 000. T here w as a sim ilar increase d uring the last six m onths of 1939, w hen total assets of Iow a’s state banks grew from $446,000,000 to $466,000,000. Two new state banks w ere o rgan ized last year, b ringing th e n um ber started since Ja n u a ry 1, 1935, to nine. In addition to th e 545 state banks, th ere are a few m ore th a n 100 national banks in Iowa, w hose resources w ould sw ell th e total of Iow a’s b an k re sources still more. In boom days, Iow a had 1,300 state banks, betw een 500 and 600 national banks, and 200 p riv ate banks. Named Director W illis F. Rich of F o rt Dodge has been appointed to th e board of direc tors of th e P ocahontas S tate B ank at P ocahontas to fill th e vacancy created by th e d eath of th e late E. H. Rich of F o rt Dodge. Committee Chairman W. A. K neeland, cashier of th e P o st ville State B ank, w as notified th a t he had been appointed to th e ch airm an ship of th e im p o rta n t “B anking A n alysis C om m ittee” of th e Iow a B ank ers A ssociation. H. R. Young, p resi dent, m ade th e appointm ent. SC O T T C. P ID G E O N Heads Des Moines C . of C . come an ex-officio m em ber of the board. Mr. Pidgeon, 51, w as grad u ated from th e S tate U n iversity of Iow a in 1915 and th e sam e year joined th e F irst F ed eral State B ank in Des Moines. In 1917 he w en t to th e B ankers T ru st Co. Scott C. Pidgeon, vice p resid en t of th e B an k ers T ru st Co., w as elected p resid en t of th e C ham ber of Com m erce recently. Mr. Pidgeon, w ho w as unopposed, succeeds H a rry O. H ay, w ho w ill be- AMERICAN NATIONAL BANK o j L A S A L L E AND 1941 Convention P resid en t H. R. Young announces th a t th e nex t S tate C onvention of the Iow a B ankers A ssociation w ill be Monday, T uesday and W ednesday, Septem ber 8, 9, and 10, 1941. In a TRUST COMPANY C ^ L cca ^ a S T R E E T A T W A S H I N G T O N MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION A n n u a l S t a t e m e n t as Am |% o f D e c e m b e r 31, 1 9 4 0 w ' LI ABI LI TI ES R E S O U R C E S CASH AND DUE FROM BANKS . . - $ 3 3 ,2 8 7 ,1 3 9 .3 6 . 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 _ _ _ _ _ _ _ 1 4 ,6 0 1 ,0 1 8 .0 5 CAPITAL S T O C K — P R E F E R R E D _ _ _ _ _ CAPITAL _ _ _ _ _ , , STO C K — COM M ON SURPLUS _ UNDIVIDED MUNICIPAL AND _ s e c u r i t i e s LOANS AND FEDERAL OTH ER M ARKETABLE _ _ _ _ _ _ _ _ _ _ DISCOUNTS RESERVE _ _ _ _ _ BANK STOCK _ _ 2 1 ,3 9 9 ,7 0 1 .0 7 _ - 1 4 ,8 5 5 ,2 3 8 .9 5 - 1 0 8 ,0 0 0 .0 0 _ _ _ _ _ PRO FITS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ PREFERRED STOCK RETIREM EN T FUND _ _ RESERVE FOR TAXES, INTEREST, CON T I N G E N C I E S , E T C . _ ............................................................ UNEARNED DISCOUNT LIA BILITY ON _ _ _ _ _ A C C E P T A N C E S _ _ _ _ _ _ 6 0 0 ,0 0 0 .0 0 0 0 0 , 0 0 0 .0 0 000, 000.00 5 5 1 ,0 3 5 .8 3 1 5 0 ,0 0 0 .0 0 7 7 5 ,9 6 6 .7 5 2 5 1 ,5 3 2 .4 9 15,449.71 DEPOSITS: C U S T O M E R S ’ ANCES _ ACCRUED LIABILITY _ _ _ _ IN TEREST A S S E T S . Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ ON _ ACCEPT _ _ _ _ RECEIVABLE REAL ESTATE OW NED OTHER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ January Í9J1 _ _ _ _ _ _ DEMAND 1 5 ,449.71 1 5 6 ,7 0 0 .9 6 1.0 0 _ _ _ -$ 6 8 ,6 3 1 ,1 3 6 .1 3 1 ,7 3 1 ,6 9 4 .3 4 _ - UNITED STATES G O V ’T OTHER PUBLIC FUNDS s a v i n g s 1 0 ,6 0 7 .7 4 $ 8 4 ,4 3 3 ,8 5 6 .8 4 _ SPECIAL DEPO SIT (S u b je c t to c o u rt o r d e r ) _ _ _ _ _ _ 2 ,6 0 0 ,0 0 0 .0 0 3 4 ,6 1 3 .3 8 6 ,0 9 2 ,4 2 8 .2 1 7 9 ,0 8 9 ,8 7 2 .0 6 $ 8 4 ,4 3 3 ,8 5 6 .8 4 63 • recent referen d u m to th e b anks of Iow a ask in g w h e th e r or not th e y w ould like to have th e convention again held in S eptem ber, th e b an k ers overw helm ingly voted in favor of at least holding one m ore convention in Septem ber, ra th e r th a n in th e m onth of June. F o r m ore th a n 50 years th e conventions have been held in th e m o n th of Ju n e u n til th is past year. The m eeting place has not been selected, b u t probably w ill be a t th e tim e of th e com ing m id-w inter Coun cil M eeting to be held in Des Moines on J a n u a ry 8, 1940. I O W A NEWS • Inter-County Meetings P re sid en t H. R. Y oung announces th a t a series of inter-county m eetings will be conducted th ro u g h o u t Iowa d u rin g th e com ing w in ter m onths sim ilar to th e ones held tw o y ears ago. T hese inter-county m eetings will take th e place of any m id-w inter state m eeting such as w as held a y ear ago. It is th e opinion of th e m em bers of th e council of ad m in istratio n of the Iow a B ankers A ssociation th a t m ore w o rth w hile good is gotten out of local m eetings th a t can be held in the evening and w hich can be attended by th e en tire b an k staff and direc tors and w ives th a n from a one-day m eeting held a t some cen tral place in th e state w hich only a m in o rity can attend. F o r exam ple, n early 1,400 bank executives, directors, stockhold ers and staff m em bers w ere registered a t th e 18 inter-county m eetings held tw o y ears ago, w hile a t th e State-wide B anking Conference held last Ja n u a ry in Des Moines, less th a n 400 w ere reg istered. P resid en t Young announces th a t the state has been divided into tw en ty dis tricts. W h erev er it is possible four Election A t th e a n n u al m eeting of th e Se c u rity Savings B ank, W illiam sburg, th e officers and directors w ere elected to succeed them selves. T he only prom otion w as th a t of HJ B. M artin, w ho has been bookkeeper, and he w as prom oted to the position of second a ssista n t cashier. T his a rra n g e m en t leaves R. E. Jones as p resid en t and D. J. Lew is as cashier. Heads Clearing House Rolfe O. W agner, p resid en t of th e C apital City S tate B ank, has been elected p resid en t of th e Des Moines Clearing H ouse A ssociation for 1941. The Waterloo Savings Bank WATERLOO, IOWA Statem ent of Condition as Made to S uperintendent of B anking at the Close of Business Decem ber 31, 1940 RESOURCES First Mortgage Loans_____________________________ $ 705,168.89 Loans Secured by Collateral______________________ 1,412,722.95 Commercial Loans Supported by Financial Statements ____________________________________ 900,463.28 Overdrafts ______________________________________ Real Estate (former bank building included)______ Furniture and Fixtures___________________________ State, County, and Municipal Bonds_______________ 317,011.05 Market B o n d s___________________________________ 206,266.45 Call Loans and Commercial Paper_________________ 627,500.00 U. S. Government Securities______________________ 255,525.00 Casb on Hand and Due from Banks_______________ 2,620,025.85 ,018,355.12 1,367.03 84,254.00 19,892.81 4,026,328.35 $7,150,197.31 LIABILITIES Capital S tock ____________________________________ $ 175,000.00 Surplus _________________________________________ 200,000.00 Undivided Profits _______________________________ 11,580.40 Dividend Checks Outstanding_____________________ D EPO SITS______________________________________ 386,580.40 441.00 6,763,175.91 |>7,150,197.31 D ep osits Insured by The Federal D ep osit Insurance Corporation W ashington, D. C. $5,000.00— M axim um Insurance for E ach D epositor— $5,000.00 R O L F E O. W A G N E R He succeeds F red erick M. M orrison. H erb e rt L. H o rto n w as nam ed first vice president, and Roy Capps, second vice p resident. F re d C. A tkins w as re-elected secretary. The a n n u al m eeting w as held in the d irecto rs’ room of th e B an k ers T ru st Company. O FFICERS H . G. N o e t h e y , President R. W. W a i t e , V ice President C a r l e t o n S i a s , V ice P resident J. J. M i l l e r , Cashier F r a n c is R. L a B a r r e , A ss’t Cashier V . S p a l d i n g M i l l e r , A ss’t Cashier O l i v e r J. S c h u t t e , A ss’t Cashier D IRECTORS C. F. A l t s t a d t Cl a r e n c e E . C a m p b e l l Ca r l e t o n S i a s R . W . W a it e H arry G. N o r t h e y J . J . M il l e r L o w e l l J. W a l k e r H a r r y A . L im b e r t W il l E . Og le C. R . D a v is K . L . B ragdon Geo rg e E . P ik e Northwestern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 64 • counties w ill co n stitu te th e district. T here are certain sections of th e state, how ever, w here th e n u m b er has been reduced to th re e counties or increased to five, b u t a d istric t of four counties m akes a v ery co nvenient d istrict and will enable th e b an k ers to get b e tte r acquain ted w ith th e ir neighbors “ju st over th e lin e” th ro u g h these in te r county m eetings. T his plan for sm all er d istricts or in ter-county m eetings is being m erely su b m itted to the bank s w ith th e hope th a t th ey will IO W A NEWS • accept them and hold a t least one inter-county m eeting each year, pos sibly in th e fall or w inter. It is not in ten d ed or expected th a t ban k ers w ho have active county associations w ill give th em up for an inter-county association. It is hoped th a t th ey w ill continue rig h t along w ith th e ir own county association b u t th a t once a y ear th ey w ill see fit to have an in te r county m eeting consisting of th e neighbors in adjoining counties. Heads Credit Group George D. Jorgensen, a ssistan t cash ier of th e Iowa-Des Moines N ational B ank and T ru st Co., has been elected presid en t of th e Des Moines R etail C redit Association. He has served as vice presid en t of the organization du rin g the last year, and form erly w as treasu rer. C o n tin en ta l I llin o is N atio n a l Bank a n d T rust C om pany OF CHICAGO Statement of Condition, December 31,1940 GEO R G E D. J O R G E N S E N RESOURCES Cash and Due from Banks..................................$ 670,627,860.63 United States Government Obligations, Direct and Fully Guaranteed......................... 675,321,191.95 Other Bonds and Securities................................ 64,861,404.98 Loans and D iscounts............................................. 188,836,340.37 Stock in Federal Reserve Bank....................... 2,700,000.00 Customers’ Liability on A cceptances............. 350,201.56 Income Accrued but N ot C ollected................. 2,427,023.80 Banking H o u se ..................................................... 12,300,000.00 Real Estate Owned other than Banking House 2,580,097.66 $1,620,004,120.95 l ia b il it ie s D ep osits................................................... $1,491,577,547.86 Acceptances ........................................................... 401,078.03 Reserve for Taxes, Interest andExpenses. . . . 5,031,355.80 Reserve for C ontingencies.................. 17,515,837.08 Income Collected but N ot Earned... 256,438.72 Common S tock ....................................... 50,000,000.00 Surplus..................................................... 40,000,000.00 Undivided Profits................................... 15,221,863.46 $1,620,004,120.95 U nited States G overnm ent obligations and other securities carried at $172,718,556.03 are pledged to secure public and trust d eposits and for other purposes as required or permitted by law Member Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19bl Miss Gladys T hom pson w as nam ed vice president, and Ross C arrell w as re-elected treasu rer. Mr. Jorgensen, F re d H ockett and E rv in Jo rd an w ere elected directors. Redecorated T he State Bank, Gladbrook, has re cently been rem odeled and redeco ra te d w ith changes in th e w indow spaces, m aking th em w ider and fixing room u n d er th e counters for filing space, th e in n e r w all pain ted cream and equipped w ith in d irect lighting. All fu rn itu re has been refinished. M ore space has been m ade available for th e em ployes by th e arran g em en t b u t th e lobby rem ains unchanged. Best In U. S. A . Clinton county, Iowa, shipped m ore top steers to th e Chicago m a rk e t d u r ing 1940 th a n any o th er county in th e U nited States, according to figures ju st com piled by livestock experts in th e U. S. stockyards. Jo h n P o rte r of D eW itt, C linton county, received th e distinction d u r ing 1940 of selling th e hig h est priced cattle in over th ree years, w h en his tw o loads sold th e m iddle of last m onth a t $15.40. In com petition w ith beeves from 65 • o ther fam ous cattle feeding farm s in th e U nited States, 42 C linton county carloads d u rin g 1940 set th e price stan d ard s for th e re st of th e n atio n to follow. Iow a also ra n k e d high am ong th e states for h ig h est selling cattle. Of th e 267 loads w hich com m anded top prices d u rin g 1940, 125 lots w ere from variou s p a rts of Iowa. R ecords also show th a t w estern Illinois an d ea ste rn Iow a cattlem en have a laudable “h a b it” of each settin g th e stock m a rt top m ore th a n once du rin g th e year. Schm idt Bros, of D elm ar h ad th e high selling load on seven different occasions d u rin g 1940; Sw anton Bros., C harlotte, five tim es; Jo h n B orter, D eW itt, five; H arvey Schm idt, C harlotte, three; H en ry and Leo H arm sen, Teeds Grove, two; Tom D iffenderfere, L an ark , 111., two; W il liam M atthiesen, B ryant, two, and L y m an K em m is, P ro p h etsto w n , 111., two. C arroll county, Illinois, contributed 14 top loads to th e g ran d total, w hile Jackson county, Iow a, h ad seven of th e crest lots and W hiteside in Illi nois, five. Logan Elected President At a re g u la r m eeting of th e board of directors of th e S tate C entral Sav ings B ank, K eokuk, held on D ecem ber 26, 1940, W. A. L ogan w as elected p resid en t of th e b an k to fill th e v acan cy in th a t office caused by th e death of H. W. H uiskam p. The board in selecting Mr. Logan to head th e b an k as p resid en t con tin u es in th a t office a m an of wide experience in b an k in g as w ell as a m an in te re ste d in th e in d u stria l and civic activities of th e city of K eokuk. Mr. Logan sta rte d his ban k in g ca re e r im m ediately upon his g rad u atio n from S tanford U n iv ersity and has been serv in g th e b an k as executive vice p resid en t for eig h t years. In 1929 he organized th e F arm ington S tate B ank, F arm in g to n , Iowa, and has served as p resid en t of th a t b ank since its organization. By his election to th e p residency of th is b an k he now becom es th e active head of th e b an k founded by his g ran d fath er, Judge Wm. Logan, in 1893, w hich w as form ed by th e m erger of th e S tate B ank and th e C entral Savings B ank of K eokuk, th e ir o r ganization going back to 1858. The Service Departm ent of COAST BANKER, 255 California Street, San Francisco, California, is prepared to act as interm ediary in the purchase and sale of western banks. All correspondence will be treated confidentially. Address desires and needs to Service Department, COAST BANKER, 255 California Street, San Francisco, California. IO W A NEWS • New Des Moines Bank The new ly organized Iow a State B ank, Des Moines, has signed a lease for th e old Home Savings B ank loca tion, n o rth e a st corner of E a st Sixth an d L ocust streets, G. A. F ram pton, president, said last m onth. The room has been occupied since A ugust, 1939, by th e Polk county food stam p store, and th e board of su p er visors now is looking for new q u a r te rs for th e store. Mr. F ram p to n said th a t as soon as th e new ban k gets possession of the pro p erty, rem odeling and recondition ing w ill begin, and th a t th e b an k w ill occupy th e room w hen th e m oderniza tio n process is completed. Mr. F ram p to n said articles of incor p oration w ere filed w ith th e Iowa secretary of state, settin g out a capi ta l of $100,000 for th e Iow a State B ank, and a su rp lu s of $10,000. F ra m p ton, George O’Dea, H ugh N. Gallagher, W illiam B roquist and A. E. (B ert) S argent w ere nam ed as directors. Defense Committee H. R. Young, A rlington, p resident of th e Iow a B ankers A ssociation, and 15 o th er Iow a b an k ers have been nam ed to an Iow a com m ittee to co operate w ith th e national defense loan com m ittee of th e A m erican B ankers Association. O ther m em bers are: H. E. Simon, B urlington; S. E. Coquillette, Cedar Rapids; M. W. Ellis, C harles City; E. M. W arner, Clinton; B. A. G ronstahl, Council Bluffs; V. O. Figge, D avenport; D. W. E rn st, Du buque; H. O. L ovett, Fairfield; E. A. Ebersole, K eokuk; M. C. Berkley, M ar shalltow n; F re d C. H enem an, Mason City; Max von Schrader, Ottum wa; R. R. B rubacher, Sioux City; C. S. McK instry, W aterloo; H erb ert L. H orton, Des Moines. Mr. H orton also is a m em ber of the national defense loan com m ittee of the R eserve City B ankers Association. T he Iowa com m ittee w as invited to m eet in Chicago recently w ith com m ittees from o ther states in th e sev en th federal reserve d istrict to discuss plans. Aurelia Banker Dies F u n eral services w ere held recently at A urelia for George Lam m , 36, prom in en t b an k er there, w ho w as found dead in his bed. Mr. Lam m had only been ill for a Opened for Business October 15, 1934 S tatem ent of the IOWA STATE BANK & TRUST COMPANY Iow a City, Iow a DECEMBER 31, 1940 R E SO U R C E S Cash and D ue from B a n k s...................................................... ............ $1,127,838.53 U. S. B o n d s.................................................... ............................................. 171,175.00 Other Bonds and S e c u r itie s........... ................................................... 122,176.19 CASH OR IT S E Q U I V A L E N T .,....................................................................................$1,421,189.72 Loans and D isco u n ts...................... 1,655,654.95 Overdrafts .............................................................................................................................. 115.21 B anking H o u se ......................................................................... 53,300.00 Furniture and F ix tu r e s...................................................................................................... 13,200.00 $3,143,459.88 L IA B IL IT IE S Capital S to ck .................................................................................................................................. $ 100,000.00 Surplus and U ndivided P r o f i t s . . . . . ................................................................................... 119,695.31 R eserve for I n te r e st................................ 753.70 D ep osits .............................................................................. 2,923,010.87 $3,143,459.88 O F F IC E R S B e n S. S u m m e r w i l l , President D r . E . M. M a c E w e n , V ic e P r e s id e n t M. B. G u t h r i e , Cashier W. F. S c h m i d t , A ss’t Cashier M . E . T a y l o r , A u d ito r W. W. S u m m e r w i l l , Credit Mgr. D IR E C T O R S D r . E . M. MacE w e n G e o r g e J. K e l l e r R . J. B a s c h n a g e l M. B . G u t h r i e George A. T h o m ps o n Guy A. S t e v e n s B e n S. S u m m e r w i l l M em ber of Federal D ep osit Insurance Corporation N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January 19 h l 66 - • IO W A NEWS • sh o rt tim e, and his d eath cam e as a shock to th e e n tire com m unity. He w as a ssista n t cashier of th e F irs t T ru st and Savings Bank. been m ade to 1,100 sm aller depositors and all o th er depositors have re ceived 92% p er cent of th e ir original deposits. Dividend To Waukon The dep o sito rs’ tru ste e s of th e F irs t N ational B ank in C reston have a n nounced th e y are p rep ared to pay th e ir n in th dividend, am o u n tin g to appro x im ately $20,000. Since th e tru ste e s w ere appointed in M arch of 1933 full p ay m en t has Leo Sam ek assum ed duties as teller in th e W aukon State Bank, succeed ing Miss M eta Fasse, w ho resigned a fte r 15 y e a rs’ service w ith th e bank. Miss Fasse held th e position of as sista n t cashier. Mr. Sam ek has had nine y e a rs’ experience in banking, having been associated w ith W est U nion and Oelwein banks nine years, from 1922 to 1931. Dividends ★ 1941 1882 * * * Fifty -nine Years of Personal Service to Correspondent Banks A 20 p er cent stock dividend on Cen tra l N ational B ank and T ru st Co., Des Moines, com m on stock has been an nounced by W. J. Goodwin, p resident and ch airm an of th e board of direc tors. H olders of com m on stock w ill re ceive one new share for every five shares held. P a r value of th e stock is $100 a share. At the sam e tim e it w as announced th a t a $2 cash dividend w ould be paid to stockholders as of D ecem ber 30. ★ W . J. G O O D W IN The dividend w ill be paid on th e ex panded am ount of com m on stock, and rep resen ts a sem i-annual pay m en t to stockholders. T he total am o u n t of com m on stock, by th is move, w ill be increased from $550,000 to $660,000. A t th e sam e tim e, it w as announced, p referred stock held by th e R econstruction F inance C orporation is being paid off in a like am ount, to reduce th e total from $450,000 to $340,000. T hus th e b a n k ’s capital rem ains at a m illion dollars. To Brenton Bank M embers, Federal D eposit Insurance Corporation DROVERS NATIONAL BANN DROVERS TRUST 0 SAVINGS BANN U N I O N S T O C K Y A R D S , C H I C A G O W illiam Zunkel, cashier of th e De catu r County S tate Bank, announced YO UR STATE BANKERS ASSO CIA TIO N O FFICIA L SA FE, V A U L T AN D TIM ELOCK EXPERTS F. E. DAVENPORT & CO. OM AHA N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19M 67 -• recently, th a t effective F e b ru a ry 15, he w ill becom e executive head of a new b an k th a t is being opened by th e W. H. B ren to n B anking Company. B re n to n ’s are p u rch asin g a new bank-. R obert Garlock, w ho has been as sista n t cash ier for th e p a st five y ears of th e D ecatur C ounty S tate B ank, has accepted a position w ith th e Dallas County S tate B ank a t Adel, w h ich is also ow ned by th e W. H. B renton B anking Company. Addresses Finance Convention “C ontinuation of th e p re se n t w ar w ill have both good an d bad effects on th e autom obile finance bu sin ess,” David B. Cassat, D ubuque, Iowa, told IO W A NEWS •- w ill be req u ired to pay out of profits w as an o th er unfavorable prospect C assat nam ed. He said th a t u n d er p re se n t com petitive conditions, th e com panies could n ot pass th e in creased taxes on to th e public. As favorable features, th e speaker listed larg er consum er income, im p ro v em ent in car prices and re su lta n t rise in value of collateral back of o ut stan d ing notes, and increased car p ro duction to follow cessation of th e w ar. Mr. Cassat stressed th e point, th a t th e autom obile alw ays w ill rem ain first on th e list of things every fam ily w ants, and th a t th ere w ill be a g reat ru sh of car buying if th e w ar con tin u es long enough to cut production seriously. Board Meeting The board of directors of th e W ell m an Savings B ank held th e ir reg u lar m onthly m eeting recently. P revious to th e m eeting th ey w ere hosts to th e ir w ives at a steak dinner. Follow ing th e din n er th e ladies at- Over Sixty Years of Service STATEMENT OF CONDITION AS OF DECEMBER 31, 1940 R esources L o a n s a n d D is c o u n ts ........................................................ $1,993,228.83 B a n k B u ild in g ..................................................................... 110,000.00 F u r n . & F ix . a n d S a fe ty D e p o sit V a u l ts ................ 20,280.59 O th e r R e a l E s t a t e .............................................................. 7,000.00 S to c k in F e d e ra l R e se rv e B a n k .................................. 13,500.00 O v e rd ra fts ............................................................................ 1,537.09 U . S. B o n d s .....................................$ 183,269.00 M u n ic ip a l B o n d s D u e 1941-1946............................ 1,429,871.63 O th e r M a rk e ta b le B o n d s ......... 544,302.55 C a sh a n d E x c h a n g e ..................... 2,587,478.34 4,744,921.52 $6,890,468.03 D A V ID B. C A SSE T T th e Iow a A ssociation of F in an ce Com panies a t H otel F o rt Des M oines last m onth. Mr. Cassat, p resid en t of th e In te r state F in an ce Co., listed as th e u n favorable prospects p ersonnel difficul ties, c u rta ilm e n t of autom obile p ro duction and h eavily increased taxes. H e cited w orld w ar days w h en fi nance com panies lost m an y em ployes to w ar in d u stries w h ere inflated w age scales prevailed. H e forecasts a re tu rn of th a t condition. C assat predicted th a t if th e w ar con tin u es a t its p re se n t level, th e supply of steel w ill be lim ited for car p roduc tion and p lan ts w ill be sh ifted to th e m an u factu re of w ar needs. He pointed o ut th a t in 1918 th e o u tp u t of new cars w as cu t n early one-half as com pared to 1917 production. W ar taxes w hich finance com panies Liabilities C a p ita l ( C o m m o n ) ............................................................$ 300,000.00 S u rp lu s ................................................................................... 150,000.00 U n d iv id e d 121,375.56 P ro fits a n d R e s e rv e s ( N e t ) .................. Ja n . 2, 1941................................... 12,000.00 D e p o s its ................................................................................ 6,307,092.47 D iv id e n d P a y a b le $6,890,468.03 UNION BANK & TRUST 1---COMPANY OTTUM W A, IOWA M ember Federal 'Deposit Insurance Corporation The D eposits Oi E very Depositor In This Bank Are Insured Up To $5000.00 N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January t9 J i 68 - • tended th e th e a te r w hile th e m en held th e ir m eeting. Those p re se n t w ere Mr. and Mrs. E lm er Yoder, Mr. and Mrs. Toppan Johnson, Mr. and Mrs. R ussell W inegarden, Mr. and Mrs. Ross Severt, Mr. and Mrs. Roy D urian, Mr. and Mrs. C larence Rowe and Mr. and Mrs. Leo D urian. IO W A NEWS place is th e P eterson State Bank. F ollow ing several m onths of corre spondence, conferences and several exam inations by rep resen tativ es of th e various b anking dep artm en ts and in terested agencies, the F irs t N ational B ank has received perm ission to vol u n ta rily liquidate th e b ank as it w as u n d e r th e N ational B anking D epart m en t c h a rte r and set it up un d er a c h a rte r g ran ted by the Iow a B anking D epartm ent. A t a m eeting of th e stockholders National to State The F irs t N ational B ank of P e te r son has suspended business, and in its .//,<> Live Stock N ational Bank UNION STOCK YARDS STATEMENT OF CONDITION December 31, 1940 RESOURCES C a s h a n d d u e f r o m b a n k s ........................................... $ 2 1 ,2 8 8 ,7 4 3 .1 7 U n i t e d S ta te s G o v e r n m e n t s e c u r i t i e s ................... 2 , 5 5 8 ,8 9 8 . 5 6 S ta te a n d m u n ic i p a l s e c u r i t i e s ................................... 5 9 1 , 6 1 1 .8 9 O t h e r m a r k e ta b l e b o n d s .............................................. 1 ,1 8 6 ,2 0 8 . 3 8 L o a n s a n d d i s c o u n t s ......................................................... 6 , 1 4 4 ,0 0 6 . 3 6 F e d e r a l R e s e r v e B a n k s t o c k ...................................... 7 5 ,0 0 0 .0 0 B a n k b u i l d i n g ...................................................................... 4 5 0 , 0 0 0 .0 0 F u r n i t u r e a n d e q u i p m e n t .............................................. 1 .0 0 I n t e r e s t e a r n e d , n o t c o l l e c t e d ................................... 2 9 , 2 9 3 .0 6 C u r r e n t r e c e iv a b l e s a n d o t h e r a s s e t s ................... 1 0 ,6 3 9 .8 5 $ 3 2 , 3 3 4 ,4 0 2 . 2 7 LIABILITIES C a p i t a l ....................................................................................... $ 1 ,0 0 0 ,0 0 0 .0 0 S u r p l u s ....................................................................................... 1 , 5 0 0 ,0 0 0 . 0 0 U n d i v i d e d p r o f its a n d r e s e r v e s ................................ 12 8 , 1 9 6 .8 8 U n e a r n e d d i s c o u n t .......................................................... 3 4 ,8 6 6 .1 9 D e p o s i t s .................................................................................... 2 9 , 6 7 1 ,3 3 9 - 2 0 $ 3 2 , 3 3 4 ,4 0 2 . 2 7 BOARD OF DIRECTORS Fr e d e r ic k h . P r in c e F. H. P rin ce & Co., Providen ce, R. I. R obert J. D u n h am W il l ia m J. O ’C o n n o r Investm ents Ass’t G en era l M anager, Union Stock Y a r d & T ra n sit Co. R ic h a r d H a c k e t t D a v id H. R e im e r s G en eral M anager, C entral M anu factu rin g D is tr ic t P resident, The L iv e Stock N a tio n a l Rank o f Chicago O r v is T . H e n k l e C l y d e H . Sc h r y v e r V ic e-P resid en t a n d G en eral M anager, Union Stock Y a r d & T ra n sit Co. P resident, Chicago M erchandise a n d E q u ip m en t Co. A r t h u r G . Le o n a r d R a l p h M . Sh a w P resid en t, Union Stock Y a r d & T ra n sit Co. Winston, S traw n & Shaw T h o m a s e . W il s o n J am es A. M c D o n o u g h Chairm an, B o a rd of D irectors W ilson & Company Investments, P roviden ce, R. I. SERVING AGRICULTURE AND INDUSTRY titr e J 8 6 8 M E M B E R F E D E R A L N orth w estern D an ker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D E P O S I T Jan u ary 19 M •- I N S U R A N C E C O R P O R A T I O N final vote w as tak en to c arry out th e steps necessary to m ake th is change. A t a previous election th e req u est of J. F. Fastenow , to be relieved of his duties as president, w as acted on and A. W. Jones, a m em ber of th e board of directors, w as nam ed to succeed him. Resigns K arl G. Kalde, vice p resid en t of th e S tate Savings Bank, Council Bluffs, resigned recently, th e resig n atio n to become effective J a n u a ry 1. Mr. Kalde stated his plans for the fu tu re w ere indefinite. Elected President G. H. Clark, w ho has been cashier of th e Com m ercial S tate Bank, M ar shalltow n, since its organization on May 15, 1935, w as elected presid en t of th e in stitu tio n a t a reg u lar m eeting of th e board of directors. Mr. Clark w as first elected a m em ber of the board to succeed Ole Stangeland w ho died on October 7 last, and th e n w as elevated to th e presidency. He also succeeds Mr. Stangeland as presid en t of th e bank. In Ute State W. A. Breen, of H ow ard, South Da kota, is th e new a ssistan t cashier at th e U te S tate Bank. Mr. B reen, w ho has had m an y y ears of ban k in g ex perience in South Dakota, com m enced his duties last m onth. Mr. B reen takes th e place of Orval Spahn w ho resigned to accept the cashiership of th e F irs t S tate B ank a t M apleton. Postville Meeting The wage and h o u r law as it applies to banks w as th e m ain topic of discus sion at th e m eeting of G roup 4 of th e Iow a State B ankers A ssociation held in Postville. T here w ere 140 people in attendance from A llam akee, Clayton, F ay ette and W inneshiek counties. W. A. K neeland of Postville, p resi dent of th e A llam akee County B ank ers A ssociation, presided at th e m eet ing and C. H. M egorden, vice p resi dent of the county group, gave th e ad dress of welcome. F red erick L. L udem an, Jr., of th e wage and ho u r division for Iow a gave an address on “The W age and H our L aw and B an k s” and afterw ard a n sw ered questions propounded by those present. 69 Dies in California H a rry A shton M errill, 86 died at Glendale, C alifornia, follow ing a sh o rt illness. He w as fo rm erly p resid en t of th e City N ational B ank a t M ason City before m oving to C alifornia about 15 y ears ago. Check Transactions Check tra n sa c tio n s th ro u g h Des M oines b an k s for 1940 totaled $1,173,022,000 to set a new all-tim e h igh rec ord for th e city. T he 1940 figure b eat a m ark th a t had stood since check p ay m en ts in Des M oines reached $1,161,634,000 back in 1920. The only o th er y e a r th a t produced a check figure w ith in h ailing distance of last y e a r’s peak w as 1937, w hen the total reached $1,145,547,000. The 1940 m a rk show ed a gain of n early 45 m illion dollars over th e 1939 to tal—an increase w hich averaged n early a m illion dollars a week. It is notable also th a t 1940 w as th e six th successive y e a r th a t check p ay m en ts have exceeded th e billion-dol la r m ark. P rio r to 1935, only four tim es did Des M oines b reak into th e billion dol la r class in checking activ ities—1920, 1924, 1928 an d 1829. A lthough check tra n sa c tio n s s u r passed th e 100-million-dollar m ark d u rin g each of four m o n th s last year, th e rem ain in g eig h t m onths w ere co n sisten tly high, and th e low est m o n th ly to tal w as $84,953,000 reg is tere d in F eb ru ary . Statement of Condition Close of B usiness December 31, 1940 S A V I N G S B A N K DES MOI NE S RESOURCES Loans and D iscou nts...................................................................................................................... ^ ’l i s ’qnn'nn Other Bonds and S tock s................................................................................................................. sq na O v e r d r a fts......................................................................................................................................... .. Furniture and F ix tu res................................................................................................................. » lan'qn Customer L iability on A cceptances..................................... ..................... .. • • • • • • • • • • • • • 8,isu.au Government Obligations, Direct and Fully G uaranteed.................... 9 M unicipal Bonds .............................................................................................. i i ? qoq qa 0 esc qqe 02 Cash and Due from B an k s............................................................................ 2,114,929.98 2,685,990.02 $6,701,992.14 LIA B ILITIE S Capital S tock -C om m on .............................................................................................................* aOMOo'.OO i S U p r o M s : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : " : : : : ........................ Reserves ........................................................................................................................................... ^ ,634.00 Unearned Discount ................................................................................................................. s i an qn Bank L iability on A cceptances.................................................................................................. , Deposits ............................................................................................................................................. 6,125,372. $6,701,992.14 OFFICERS Frederick M. Morrison, P resid en t Winfield W. Scott, Vice P resid en t J. R. Astley, Cashier Edward P. Kautzky, Assistant Cashier Walter Lucius Harold Arthur M arvin L. Payne, A ssistan t Cashier F ran k M. Thom pson, A ssistan t Cashier DIRECTORS P. Davis George Mahnke W. Fitch Frederick M. Morrison J. Howe Winfield W. Scott S. Kirk J. E. Tone Allen Whitfield 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 CLINTON COMPANY a t C lin to n , Io w a M anufacturers of p rod u cts from C orn, v iz.: Syrups, S tarches, Sugars, O il and F eed Dividend S tockholders of th e N ew ton N ation al B ank w ill receive a 2% p er cent dividend for th e six-m onth period ending D ecem ber 31, 1940. The b an k has a capital of $100,000. S urplus funds to tal $44,000 and undivided profits, $22,327. S tockholders w ill hold th e ir an n u al m eeting J a n u a ry 14th. Identified F re d Hill, editor of th e H a m b u r g re p o rts th a t a H am b u rg citizen w as trav elin g in C alifornia and r a n sh o rt of m oney. H e w en t to a b an k to get a check cashed and, of course, w as asked for identification. F in a lly he found in his pocket a re ceipt from th e R e p o r te r show ing th a t he h ad paid his subscription in ad vance. T he b an k cashed th e check. O ther p ap ers express th e ir w illingness to fu rn ish th e ir subscrib ers w ith sim i la r m eans of identification if th e y w ill come in and p ay up. R e p o rte r, I n t e r e s t i n g f a c t s p e r t a i n i n g to th is c o m p a n y ’s o p e r a t io n s G rinds u p w ard o f 6,500,000 b u sh els of corn a n n u a lly w h ich re q uires ab out 130,000 acres of corn land to prod uce. C oal con su m ed —-500 tons d aily. R ailroad cars— 130 cars sw itch ed d aily. W ater used d a ily — 15,000,000 gallon s (sufficient to su p p ly a city o f 100,000 p o p u la tio n ). N u m b er o f em ployees-—1,000. W ages p a id a n n u a lly — $1,500,000.00. F in ish ed p ro d u cts; 365,000,000 p o u n d s p rod u ced an n u ally. The CITY NATIONAL BANK C L IN T O N , IO W A M em b e r o f th e F e d e ra l D e p o s it I n s u r a n c e C o rp o ra tio n , W a sh in g to n , D . C. N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker Januar y 19 M 70 IO W A FRO M N EW S H ERE A N D TH ERE By J . A. Sarazen, A sso cia te Editor J. A. SA R A Z E N ISS L V 1 ,\ W E H R L E , secretary M to O. D. E llsw orth, cashier, Dal las County S tate B ank, Adel, has ac cepted a position as se c re ta ry to th e executive officer of th e F irs t N ational B ank of th e Black H ills, R apid City, South D akota. T he F ir st State Bank, B attle Creek, has increased th e capital of th e b an k from $10,000 to $30,000, effective th e CONDENSED first of th e year. T his w as accom plished by declaring a 200 p er cent stock dividend. S urplus and u n d i vided profits are n early $10,000. F. W. Kem p, cashier, F a rm e rs Sav ings B ank, D anbury, w as elected to th e board of directors to succeed C. R. S. A nderson w ho passed aw ay last O ctober 19th. Mrs. C. R. S. A nderson w as elected vice presid en t to succeed STATEMENT FIRST NATIONAL BANK IN ST. L O U I S A t the Close of Business, December 31, 1940 RESOURCES L o an s a n d D isc o u n ts $ 68,751,581.59 U. S. G o v e rn m en t Securities 56,438,880.57 O th e r S ecurities G u a ra n te e d b y U . S. G o v e rn m en t 25,020,217.37 O th e r B o n d s a n d S tocks 9,032,191.62 S tock in F e d e ral R eserve B a n k 426,300.00 B a n k in g H ouse, Im p ro v em en ts, F u rn itu re a n d F ix tu re s 522,513.62 O th e r R eal E s ta te O w ned 1,721,782.01 C u sto m ers’ L ia b ility a /c L e tte rs o f C re d it, A cceptances, etc. 403,859.23 A ccrued In te re s t R eceivable 559,771.91 O v e rd rafts 3,163.58 O th e r R esources 6,026.16 C ash a n d D u e from B a n k s 147,186,709.90 $310,072,997.56 LIABILITIES C a p ita l— C om m on $ 10,200,000.00 S urplus a n d P ro fits 9,027,560.32 D iv id en d D eclared, P a y a b le F e b ru a ry 28, 1941 240,000.00 R eserve for T axes, In te re s t, etc. 240,461.05 U n earn ed D isco u n t 238,208.02 L ia b ility a / c L e tte rs o f C re d it, A cceptances, etc. 438,660.63 In d iv id u a l D ep o sits $136,356,165.69 S avings D eposits 32,847,061.42 B a n k D ep o sits 114,406,859.61 C ity o f S t. L ouis a n d O th er P u b lic F u n d s 6,078,020.82 T o ta l D ep o sits 289,688,107.54 $310,072,997.56 B road w ay * L ocust ■>O liv e M e m b er F e d e r a l D e p o s it I n su ra n c e C o rp o ra tio n N orth w estern B ank er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19 M h e r husband. T he b ank paid a reg u lar dividend of 6 p er cent to stockholders in 1940. At th e F arm ers State Bank, S ch les w ig, officers rep o rt business v ery sat isfactory. D eposits are up, loans and discounts are holding about th e sam e and profits for 1940 w ill be about the sam e as th e last few years. W e received th e follow ing letter from P. AV. C laussen, cashier, F arm ers S tate Bank, R icketts, a few days ago: “I re g re t to advise th a t our vice p res ident, F ritz G ierstorf, passed aw ay De cem ber 19th at th e age of 63. He w as a d irector of th is b an k since 1908 and vice p resid en t since 1926.” Mr. G ierstorf w as an extensive farm er and cattle feeder. D eath w as caused by typhoid fever w hich also claim ed the lives of his only son and daughter. W e noticed th e follow ing in a bank u n d er th e glass of a check counter: IT IS NOT BAD TO BE OLD, IF YOU CAN ST IL L GIVE B IR T H TO A YOUNG ID EA —NOW AND T H E N —W ITH O U T AID OF AN A N ES T H E T IC OR A S N IF T E R OF SN U FF. HOW MANY IDEAS IN YOUR OF F IC E CALL YOU PAPA? R ay B ailey, president, Jasp er County Savings Bank, N ew ton, tells us th a t his b ank enjoyed a v ery good y ear in 1940. D em and has been v ery steady and deposits have held up v ery well. B anking ho u rs here are from 9:30 a. m. to 3:00 p. m. every business day. W alter R obinson, cashier, N ew ton N ational Bank, rep o rts a good year for his bank. A reg u lar 5 p er cent dividend w as paid to stockholders, th e reserves increased and a 5 p er cent bonus paid to employes. Effective J a n u a ry 1st a reduction w as m ade in in te re st rates from 2 p er cent to 1 V2 p er cent. V isiting th e T em pleton Savings Bank, we found th a t it had m oved across th e stre e t to m uch im proved qu arters. A building form erly occu pied by a b ank w as secured th ro u g h a trad e of buildings and a cash consid eration. Joyce R ush en b erg joined th e b ank as teller and bookkeeper, succeeding L eona Schreck, d au g h ter of th e cash ier, afte r h e r m arriage. S tatem en t of th e F arm ers Savings Bank, P rinceton, em phasizes its 32nd an n iv ersary . Also, du rin g th e d epres sion, 1933, deposits w ere $214,000 and now are a half-m illion. 71 • The State Savings Bank, F on tan elle, pays 2 p er cen t in terest, except all sum s in excess of $1,500 in an y in d i vidual savings account shall b e a r in te re s t a t th e ra te of 1% p er cent p er annum , com pounded sem i-annually. Carroll b an k s are now closing at noon on Saturday. T he G uthrie C ounty State Bank, G uthrie Center, has increased th e cap ital stock from $30,000 to $50,000 by declaring a 66% p er cent stock divi dend. D eposits h ere are w ell over $1,000,000. Two p er cent in te re st is paid on 12 m o n ths C. D.s and 1% p er cent on 6 m o n th s C. D.s and savings. IO W A N EW S • to c a rry th e books and m oney from th e ir v au lts to th e ir tem p o rary loca tion each m orning and evening, and w ill now be in a position to operate m uch m ore conveniently. A plank sidew alk, w ith railings on each side, has been b u ilt aro u n d the old b ank location, so th a t pedestrians can get from DeVoe stre e t to Com m ercial street, and vice versa, w ith o u t th e necessity of leaving th e sidew alk and w alking aro u n d th e corner in the stre e t proper. th e m a rk e t does. Thus, he has a little n est egg p u t aw ay to build th a t new corn crib if it is necessary to do so. Temporary Quarters The Lone T ree Savings Bank, w hich has been doing business since th e fire in th e room behind th e Benteco store, m oved recen tly to th e ir new tem po ra ry building aro u n d th e ir old v au lts at th e ir form er location. The b an k has been operating u n der difficulties since th e fire, having THE NORTHERN TRUST COMPANY CHI CAGO Jefferson b an k s are now open to th e public from 9:30 a. m. to 3:00 p. m. every w o rk in g day of the week. W hen it w as necessary for these b an k s to m ake a red u ctio n in th e ir h o u rs last Fall, an excellent b u lletin w as issued explaining th e reason to th e public. W e tak e th e lib erty of suggesting to banks th in k in g of sh o rten in g th e ir h o u rs to secure one of th ese bulletins. S ta te m e n t o f C o n d itio n At the close of business, December 31,1940 R ES OU RC ES A card, abo u t th e size of a p o st card, im p rin ted as follows, is being dis trib u te d by th e F arm ers & M erchants State B ank, W in terset — CATTLE LOANS! Special Low R ates. N one Low er. No stock to b u y and no delay or red tap e in closing th e loan. You get all th e m oney you bo rro w and you get it AT ONCE. E stab lish y o u r cred it for th e fu tu re by borro w in g a t th is H om e Bank. The A rthu r T rust & Savings B ank rem odeled th e tellers cages into th e new low type. T his b an k is now open from 9 to 3, tak in g one h o u r off at noon. The Odebolt State B ank celebrated its six th a n n iv e rsa ry on D ecem ber 5th, and let th e people of th e com m u n ity know it w ith a full page ad v ertise m e n t in th e local new spaper. It tied in w ith th e C hristm as season and th a n k e d th e people of th e com m u n ity for th e ir patronage. The steady g ro w th of th e b an k w as em phasized and deposits of over $600,000 w ere stressed. cashier, Iowa Savings B ank, Coon Rapids, advises his fa rm e r custom ers to seal th e ir corn, tak e th e difference in th e am o u n t th e y receive by sealing and th e am o u n t w hich w ould be received if sold on th e m a rk e t today, place it out of reach, and w ait and see w h a t W alter B u en n ek e, L o a n s a n d D i s c o u n t s .............................................................$ 44,500,036.86 U . S. G o v e r n m e n t S e c u r i t i e s ............................................ 110,454,878.l a ( I n c l u d i n g $ 7 ,0 0 0 ,0 0 0 .0 0 p l e d g e d t o s e c u r e d e p o s i t s o f P u b l i c m o n ie s a s r e q u ir e d b y L a w ) O t h e r B o n d s a n d S e c u r i t i e s .............................................. 103,154,197.13 ( I n c l u d i n g $ 5 0 0 ,0 0 0 .0 0 d e p o s i t e d u n d e r T r u s t A c t) iv ith S ta te A u th o r itie s F e d e r a l R e s e rv e B a n k S t o c k .............................................. 270,000.00 B a n k P r e m i s e s ........................................................................... 1,400.000.00 C u s t o m e r s ’ L ia b i li t y , A c c o u n t L e t t e r s o f C r e d it a n d A c c e p t a n c e s ................................................................... 396,575.83 O t h e r R e s o u r c e s ........................................................................ 521,480.00 C a s h a n d D u e f r o m B a n k s ................................................. 161,903,069.08 T O T A L ........................................................ $422,600,237.05 L IA B IL IT IE S C a p it a l S t o c k ..............................................................................$ S u r p l u s F u n d ............................................................................. 6,000,000.00 U n d iv id e d P r o f i t s ...................................................................... 4,894,956.40 R e se rv e f o r T ax e s, I n t e r e s t , e t c ........................................ 10.772,027.07 D iv id e n d P a y a b le J a n u a r y 2, 19 4 1 ................................. 135,000.00 L e t t e r s o f C r e d it a n d A c c e p ta n c e s O u t s t a n d i n g . . 475,432.18 O t h e r L i a b i l i t i e s ....................................................................... 89,873.61 D e p o s its : D e m a n d .................................................$314,647,090.27 T i m e ........................................................ 82,585,857.52 397,232,947.79 T O T A L ............................................................................................ $422,600,237.05 M ember Federal D eposit Insurance Corporation N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3,000,000.00 Banker Januar y 194Î 72 • Assistant Vice Presidents NEWS • N EW S A N D VIEW S A. H. H iegel and F re d G ruenw ald have been prom oted from a ssistan t cashiers to be a ssista n t vice p resi dents of th e D avenport B ank & T ru st Co., it w as announced follow ing action by th e board of directors. B oth m en sta rte d in th e b anking field w ith th e old C itizens’ N ational B ank of D avenport, w hich later m erged w ith th e G erm an Savings Bank, th e nam e of w hich changed some y ears th e re a fte r to th e A m erican Savings B ank & T ru st Co. T hey have been officers of th e D avenport B ank & T ru st Co., since it w as organized in 1932. To C ed ar Rapids W. C. Zem an, fo rm erly m an ag er of the office a t D edham for th e Com m ercial Savings B ank of Carroll, re signed th a t position last m o n th and is now w ith th e U nited S tate B ank of Cedar Rapids. Mr. Zem an has had about sixteen y ears of b anking expe rience, and sta rte d his ban k in g career in Cedar Rapids. “See him ? H e’s going th ro u g h col lege by caring for a baby.” “L ucky guy. I got kicked out for th e sam e reaso n .” ^ IO W A (C ontinued from page 12) to th e president) is cashier. The next tim e you are in th e Field B uilding drop in and see th is latest and m ost m od ern istic bank. A. M. W right, tre a su re r of the H a rv a rd T ru st Company, Cambridge, M assachusetts has sent us a series of “sta te m en t stu ffers” for 1941 w hich are going to nearly 12,000 com m ercial custom ers each m onth. To our m inds th is series is about as clever and in terestin g as we have seen and each one covers some p articu lar in d u stry w hich is located at Cam bridge, and tells th e sto ry of this p a r ticu lar m an u factu rin g organization v ery briefly and to th e point being headed “F rom Cam bridge” and th en discusses th e p a rtic u la r product m an u factured. If you h av en ’t seen th is series we are su re Mr. W rig h t w ill be glad to send them to you. D avid R eim ers, presid en t of the Live Stock N ational B ank of Chicago m ade our holidays v ery happy by sending a de luxe specially prepared pre-cooked ham w hich w as m ost de licious and delectable. Bank advertising can be made to pay dividends. W rite for particulars about the N ew 1941 Program. ' £ t ( J L C L E - i- You can edit the New 1941 Wessling Publicity Program to suit your own local situation exactly. D . R . W E S S L IN G , P R E S ID E N T 2 S£± <^\/{obl£,±, ú o tv a . O u t - o f - T o w n TSanks H ere is a pleasant w ay to die —for an oyster-—a t least it seem ed so to us as we read this description on a m enu recently: “Lulled to sleep and deluded into a false sense of secu rity by the soothing und u latio n of th e waves, these gentle, happy, plum p little mollusks little suspected th a t d ark tre a c h ery w ould one day send them skim m ing across th e co u n try to this m e tropolis—y et today, here th ey are, re signed to th e ir fate and bravely de term in ed to be h appy to th e last.” J u s t to prove th a t th e U n iv ersity of N ebraska stu d en ts are good financiers, each one of th em w as allow ed to p u r chase 6 tickets for th e R ose B ow l game. A n u m ber of stu d en ts p u r chased th e ir quota, th e n got in th e ir jalopies, drove out to- P asadena, sold th e o th er 5 tickets a t prices ranging in th e strato sp h ere and th u s paid practically all of th e ir expenses. The original cost of th e tickets w as $4.40 each and th e sale price w as in th e clouds. Stephen H. Fifield, vice p resid en t of th e B arn ett N ational B ank of Jack so n ville, F lo rid a an d im m ediate past presid en t of th e F in an cial A dvertisers A ssociation rem em bered us w ith a b eautiful box of “Sam m y J a y ” fru it from th e so u thland for a C hristm as greeting. T he box w as filled full of oranges and grap efru it, b u t we w ere glad th a t w e received no lem ons. C. H. W etterau, vice p resid en t and tru s t officer of The A m erican N ational B ank of N ashville, T ennessee sen t out a v ery in terestin g C hristm as G reeting and gave a little historical back ground as to th e first A m erican C hristm as w hich he says w as celebrated D ecem ber 25, 1492 at B oh io on th e Island of H a y ti by C hristopher C olum bus and th e crew s of tw o of his ships, th e M enia and th e Santa Maria. Colum bus w as th e only m em ber of his p a rty w ho received gifts th a t day. D ecem ber 25, 1620 th e Pilgrim s celebrated th e ir first C hristm as a t Plym outh, M assachusetts aboard th e Mayflower, w ith a C hristm as d in n er of bacon, fish, gooseberry ta rts and plum pudding. O u t - o f - t o w n b a n k s an d b a n k e r s w ill fin d h e r e c o m p le te b a n k in g f a c ilitie s fo r p r o m p t an d e c o n o m ic a l h a n d lin g o f a c c o u n ts in C h ic a g o . W e w o u ld a p p r e c ia te th e o p p o r tu n ity o f s e r v in g y ou . C i t y N a AND T R U S T 2 0 8 S O U T H t i o n a l C O M P A N Y I I w of L A S A L L E (.Member Federal Deposit Insurance Corporation ) N orthw estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 k Chicago S T R E E T F red A. Irish sen t us his an n u al ja r of N orth D akota W hite Clover H oney w hich is alw ays m ost useful. B ut w ith it th is y ear he sen t a recipe for “B ees K n ees” w hich is as follows: “Mix equal p a rts of honey and lem on juice (at least 6 hours before using.) To th e above m ixture, add equal am ount of gin; ice, and shake w ell.” 73 • If la te r on y o u r “knees sh ak e,” don’t blam e it on th e bees. R u ssell L undy, p resid en t of th e Mu tu al S u rety Com pany of Iowa, w as p re sented w ith th e C harles Jo h n so n “m ost valuable m an aw ard” given by the A d vertising Club of Des Moines each y e a r to th e individual w ho has done th e m ost o u tstan d in g w o rk for the organization. D uring th e p ast y e a r Mr. L un d y or ganized th e B etter B u sin ess Bureau, and has been exceptionally successful in th a t endeavor. J. M ills E aston , ad v ertisin g m an ag er of th e N o rth e rn T ru st C om pany of Chicago, sen t out a v ery beau tifu l “L incoln M em orial T rail” m ap as a C hristm as sou v en ir of th e officers and directors of his bank, of w hich Solom on A. Sm ith is president. This is one of th e m ost in te re stin g h is torical m aps w hich we have seen. F ran k W arner, secretary of th e Iow a B an k ers A ssociation, has ju st sent out th e bound volum e of th e P ro ceedings of th e 54th A nnual Conven tion. As usual, it show s S ecretary W a r n e r’s careful arran g em en t, and is com plete w ith in te re stin g ban k in g in fo r m ation w hich can be re fe rred to from tim e to tim e d u rin g th e year. M arvin R. Selden, vice p resid en t of th e M erchants N ational B ank of Cedar Rapids, in a recen t com m unication to us says th a t we m ade a m istak e in listin g some of th e gentlem en show n in a p ictu re of “the M erchants N a tional B ank in 1903”, w hich appeared on page 62 of our Ja n u a ry , 1940 issue. In re fe rrin g to th is Mr. Selden said: “D ear Cliff: “L e t’s have a real te st as to how long b a n k e rs keep th e N orthw estern B anker on file for im m ediate use. “Please refer to y o u r issue of J a n u ary, 1940, in w hich you p ublished th e p ictu re of th e force of th e M erchants IO W A NEWS • N ational B ank in 1903. A lot of fine ban k in g intelligence is rep resen ted in th is picture, w hich us younger fellows are now glad to recognize, w ith the passing of tim e. “J u s t recently, it has come to my a tte n tio n th a t th ere has been a great injustice done. In this im p o rtan t pic tu re w as a likeness of H. G. M orrison, cashier of th e F irs t N ational Bank, P eterson, Iowa, ju st recently changed to th e P eterso n State Bank. H erb is a m odest fellow and I am in favor of let tin g it be know n th a t he is the fo u rth from th e left, betw een George F. M iller, now in our bank, and ‘Cap’ P utnam , form erly, cashier, w ith his bow tie in p erfect order, ready for th e banking d uties of th e day. I am sure the N orthw estern B anker w an ts to give recognition to th is case of m istaken id en tity .” W ho said th a t b anking is a stre n uous life. One b ank a t w hich we called recen t ly has a board of directors one-half a boy S tan ley M aley, Jr., w ho g rad u ated from Culver last y ear and is a fresh m an at th e U n iversity of Ne braska. It is needless to say th a t th e ju n io r m em ber of th e fam ily attended the Rose Bowl gam e on Ja n u a ry 1st a t Pasadena. M. P lin Beebe, w ell know n b an k er of Ipsw ich, South D akota calls our a tten tio n to th e chorus of a song w hich th e y sing a t various South Da kota b a n k e rs’ m eetings and w hich is as follows: Oh, Iow a sings about h er corn, T h at grow s so big and tall; T hey buy th e ir seed from old S. D. Or th ey w ouldn’t have corn at all. Oh, th e Sunshine State of old S. D. She sure is rig h t up front, We raise seed corn for Iowa, And, Boys, th a t’s sure some stunt. One of th e directors is 94 y ears of age. M innesota’s got ten tho u san d lakes, And, boys, th a t’s surely fine; B ut you can ’t raise corn in th e m iddle of a lake, A nd corn is w here we shine. S tan ley M aley, vice presid en t of the F irs t N ational B ank of Lincoln, has Ill-i-noy has got a lot of coal F o r to keep us w arm , of w hom are 80 years of age or older. S E C U R IT Y N A T IO N A L B A N K SIOUX CITY, IOWA Statement of Condition December 31, 1940 A S S E T S C a s h on H a n d a n d on D eposit w ith B a n k s ................................................ U nited S tates G o v ern m en t S e c u r i t i e s ........................................................ B onds a n d S e c u r i t i e s ........................................................................................ L oans a n d D i s c o u n t s ........................................................................................ S ecurity B ank B uilding, V au lt a n d F i x t u r e s ................................................ F e d e ra l R e serv e B ank S t o c k ........................................................................ O ther A s s e t s ............................................................................................................... $3,803,969.36 572,557.76 35,433.80 3,387,543.15 162,500.00 14,550.00 1,147.19 $7,977,701.26 Jd o w e d t C o d i Our p o lic y p rovid es a m axim u m assessm en t o f 2 */2 % in Z ones O ne and T w o— and 3 */2 % in Z on e T h ree (W estern Io w a ). Hawkeye Mutual Hail Insurance Association Carver Bldg. L I A B I L I T I E S C a p i t a l ....................................................................................................................... S u r p l u s ....................................................................................................................... U n d iv id ed Profits a n d R e s e r v e s ................................ ....... D e p o s i t s ............................................................................................................... $ 250,000.00 235,000.00 18,327.08 7,474,374.18 $7,977,701.26 M em ber F e d e ra l D eposit In su ra n c e C orporation Fort Dodge, Iowa N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker January 19^1 74 • B ut th ey fill th e ir plate from th e Sun shine State W hen it begins to storm . J. M. Sorensen, executive vice p resi den t of The S tephens N ational B ank at F rem o n t, N ebraska really likes th e colored fro n tis pages w hich appear in th e N or thw estern B anker every m onth. In a recen t le tte r to us he said: “T han k s a m illion for sending m e th e ex tra copy of th e p ictu re w hich ap peared in y o u r last issue of th e N orthw estern B anker . “I th in k H en ry H ayn es is to be con g ratu la te d on his good ju d g m en t of IO W A N EW S • art. I tu rn to th e pictu re each m onth and look a t it first. T hey are all good; som e of th em are exceptionally good and th is one, to m y notion, is a ‘jimdandy.’ E v ery tim e I look at it I get a kick o u t of it. I am going to fram e one of th em and h ang it in m y den. “T om orrow m orning th e gang w ill have coffee betw een 9:30 and 10:00 o’clock, and I expect to ascend from th e ‘dog-house to th e pent-house’ and re st assu red th a t you are going to get credit. “Keep up the good w ork.” D uring th e p ast y ear th e N orth B anker has been ru n n in g a series of ad v ertisem en ts for th e Iow a In v estm en t B ankers A ssociation w hich have a ttra c te d w ide atten tio n th ro u g h o u t th e country. In a recen t issue of th e F in an cial R eporter pub lished in New York one of these ad v ertisem en ts w as reproduced and had to do w ith “E lec tr icity ” show ing the am o u n t of pow er used in Iowa. In connection w ith th is ad v ertise m en t th e F in an cial R eporter said: “We reproduce the above ad v ertisem ent from th e N or thw estern B anker of Des M oines because we find it in terestin g both in conception and execution. We are certain th e bro k ers and dealers w ill be sim ilarly in terested .” w estern M ERCHANTS MUTUAL BONDING COMPANY In c o rp o ra ted 1933 Home Office VALL EY B A NK BUILDING Des M oines, Iowa • » T his is Iow a’s oldest su rety com pany. A progressive com pany w ith ex p eri enced, conservative m anagem ent. W e are p ro u d of o u r h u n d re d and fifty b a n k agents in Iow a. To be the exclusive re p re se n tativ e of th is com pany is an asset to y our bank. W rite to E. H. W A R N E R a re tu rn to th e b ank of six to tw elve p er cent on th e unpaid balance. T here is danger th a t th e ra te m ay be too low in some cases on account of com peti tion and a lack of know ledge or a dis regard of cost of operation. T here is no th in g difficult or m ys terious about consum er credit or in stallm en t loaning. It is not difficult from a credit standpoint. It req u ires a lot of h ard w ork and atte n tio n to details. It is retail credit and it m ust be m erchandised and it w ill take a g reat deal of effort to secure a volum e w hich w ill m ake th e business profit able. The easiest w ay to secure th is pap er is from dealers w ho sell au to mobiles, household equipm ent or o th er m erchandise. It is difficult to secure autom obile paper in an y vol um e from dealers for the reason th ey have v ery w ell established connec- S A F E T Y IN INVESTMENT A ccounts Insured Up To $5,000.00 n s T"7 > Federal Savings |and L oan A ssociation Or St Paul 350 C edar St. W e h eard of a w ea lth y N ebraska cattle m an w ho w en t to New Y ork not long ago and got so tire d of “b u yin g his hat back” from th e beautiful h at St. P au l, M inn. A G ood R etu rn w ith In s u r e d Safety check girls th a t he p u rchased a cap and w h en ev er he en tered a n ig h t club or an y o th er spot w here he had to have his h a t checked, he fooled them and ju s t took his cap off an d p u t it in his pocket and saved all those tips. W e did not see his financial statem en t a fte r he w as through, b u t no doubt it helped to pay for a good deal of his expenses. S u rp lu s fu n d s o f c o rp o ra tio n s , e s ta te s a n d in d iv id u a ls in v e s te d h e re e a rn 3 p e r c e n t (o u r c u rre n t r a te ) a n d a re I N S U R E D , up to $5,000, b y a g o v e rn m e n t in s tru m e n ta lity . T w i n C it y F e d e r a l Savings and Loan Association 801 Marquette Minneapolis Est. 1923 Resources 513,000.000 Secretary and Manager C O N S U M E R CRED IT O P ER A T IO N S PROFITABLE DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION O ldest a n d L argest in Des M oines 411 6 th Ave. D ial 4-7119 ELMER E. MILLER Pres, and Sec. HUBERT E. JAMES Asst. Sec. Member Federal Home Loan Bank System N orthw estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Jan u ary 19^1 (C ontinued from page 56) criticism an d often unw ise legislation and an y m isrep resen tatio n or decep tion as to b ank rates w ill m ake a rep u tab le ban k responsible for lend ing p ractices of those w ho deceive th e m ost. The sm all loan field is especi ally a ttractiv e to deceit and abuse due, no doubt, to th e economic w eakness of th e average borrow er. The rates charged on in stallm en t loans in th is co u n try v ary from th re e to six p er cent discount, m aking approxim ately F «EMPLOYERS MUTUAL CASUALTY COMPANY DES MOINES An Agency C om pany — Assets O ver $4,000,000 L L • Automobile Insurance • Workmen’s Compensation * General Liability • Elevator Insurance • Plate Glass Insurance 75 -• tions w ith finance com panies w hich th ey h esitate to discontinue. T he m ost inexpensive w ay to secure direct loans is p robably th ro u g h new spaper advertising. I th in k probably th e m ost effective w ay is by circu lar le tte r and perso n al solicitations. Our in sta llm e n t loan d ep artm en t in our b an k sta rte d October, 1935. In th is d e p a rtm e n t we handle all th e in stallm en t loans except F H A T itle II loans. It took about tw o y ears before we w ere fully convinced th a t th is business w as desirable and th a t th e re was sufficient volum e. A t th e end of five y ears we have a volum e of ap proxim ately $400,000 o u tstan d in g to over sixteen h u n d re d borrow ers. T his total includes appro x im ately 150,000 FH A T itle I loans. A bout fifty p er LEGAL INVESTMENT For INSURANCE COMPANIES Accounts Insured up to $5,000 Convenient . . . Safe 3% (C u rre n t R ate) St. Paul Federal Savings & Loan Association A xel A. O lson, Sec’y-Mgr. 4 E ast F o u rth St., ST. PA U L , M IN N . HOME ¿7 F ederal S avings 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 3^2 percent. Statem ent on request. 904 G ran d A venue D es M oines, Iow a IO W A NEWS • cent of our volum e is dealer paper. W e have m ade FH A T itle I loans since th e law first w en t into effect. Our experience w ith these loans has been v ery satisfacto ry and our losses nom inal. In m ost cases we tak e se c u rity on th e p ro p erty im proved. We do not relax our credit stan d ard s on th ese loans m erely because of th e FH A g u aran ty , w hich as you know is 10 p er cent of th e volum e. Our ex perience on o th er in stallm en t loans has been equally good. In five y ears we have had four repossessions of autom obiles w ith a loss of ap proxi m ately $67.00. W e find th a t w e have m ore delinquencies in contracts on radios and household equipm ent. Our in stallm en t loan d ep artm en t has a sam ple of n early every kin d of loan available in the S tate of N o rth Dakota. W e m ake loans on autom obiles up to tw enty-four m onths. O ther in stall m en t loans are usually not longer th a n tw elve m onths. R efrig erato r and F H A T itle I loans are m ade up to th irty -six m onths. W e try to m ake car loans w ith as little delay as pos sible, because a p u rch aser usually is in a h u rry to secure th e car afte r he decides to buy and quick service is appreciated. W e req u ire insurance, com prehensive and collision w ith $50 deductible. W e have th e title certifi cate issued show ing our m ortgage and we re ta in th e title certificates in our files. W e re ta in a d ealer’s reserve on pap er purchased. W hen w e buy pap er from a dealer we w rite th e p u r chaser a le tte r giving him notice th a t we have th e contract, th e am ount of th e contract, am ount of th e paym ents, due date, th e m ake, year, model, m otor and serial n u m ber and req u est th a t he advise us of any discrepancy. We also enclose a coupon book for his convenience in m aking paym ents and advise him th a t paym ents m u st be m ade p rom ptly on due dates. W e ra re ly have any trouble w ith new car paper; w e have learned th a t if th e first four paym ents are m ade p ro m p tly th ere w ill be little trouble w ith th e contract. W e th in k th a t special effort or even expense in en couraging th e pro m p t pay m en t of th e first fo ur paym ents is advisable. In m aking loans d irect w e can select b et te r risk s th a n the m ine-run paper from dealers. W e have discontinued h a n d ling p aym ents as deposits to savings; paym ents are now applied to reduce th e balance of th e obligation, b u t not endorsed on th e note. T he liability card is th e record and th e custom er has th e receipt or record in his cou pon book. W ith coupon books notices of m a tu rity of paym ents are not neces sary. Our problem is to keep up our vol um e. Our loans are liquidating at approxim ately $25,000 per m onth. W e advertise in our new spapers, use blot te rs and stuffers and circular letters. P ersonal solicitation especially of F H A Title I loans, has b ro u g h t in a w o rthw hile volum e of business. The fact th a t a loan is m ade u n d er the F ederal H ousing regulations seem s to have a good m oral effect on th e b o r row er. We have m ade over a half m illion dollars in FH A T itle I loans and losses w hich have been paid by T HE keen executive equips his clerical force with G-F Goodform chairs of aluminum. He knows it's good business to keep his office help comfortable and relaxed. KOCH BROTHERS PR IM ER S - BOOKBinDERS - OFFICE OUTFITTERS STflTIOIlERS - BUSII1ESS mflCHIIlES gr a n d nvenuE at Iow a’s L argest B usin ess T raining School M a n y b a n k s, bond-houses, in su ra n c e com p an ies a n d o th e r fin a n c ia l in s t i tu tio n s em ploy A. I. B. g ra d u a te s . W rite o r te le p h o n e w h en you need efficient office em ployes. E . O. P E N T O N , P re s id e n t American Institute of Business DES M O IN ES 10th an d G rand T el. 4-4203 N orth w estern B anker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fourth Jan u ary 19^1 76 • the F ed eral H ousing A d m in istratio n to date am o u n t to app ro x im ately $1,500. M any of th e w rite rs on th e subject of in stallm en t or consum er loans seem to th in k th a t a volum e of about $250,000 is n ecessary in o rd er to m ake an in stallm en t loan d e p a rtm e n t profit able. R ecently I read abo u t a sm all b an k in a tow n of ab o u t one h u n d red people in W est V irginia w hich h ad a volum e of $150,000 in in stallm en t p a per. D uring th e p ast four years, we have been convinced th a t “Tim e P ay m en t L oan s” are reasonably safe and m ore desirable th a n th e average com m ercial or ch attel loan. In ord er to secure a volum e of th is business, you w ill have to become a m erch an d iser of credit and go out a fte r th e business. You cannot w ait for th e b o rro w ers to come to you. You should ad v ertise in various w ays to m ake su re th a t th e people in y o u r com m unity w ill th in k of y o u r b ank w hen th e y are buying an y th in g on tim e. It m eans h a rd w ork, in terv iew ing h u n d red s of appli cants, sym pathizing w ith them , and teaching th em th a t even a poor m an, if he is h onest and has an income, can have b ank credit. c N e w IO W A NEWS Chemical, New York In its statem en t for D ecem ber 31st, th e Chem ical B ank & T ru st Company rep o rted deposits of $871,655,101, an in crease of $134,550,809 over D ecem ber 30, 1939, and total assets of $958,388,741 com pared w ith $824,327,174 a year ago. Cash on h and and due from banks am ounted to $412,508,661 as com pared w ith $391,152,269; U nited States gov ern m en t obligations to $219,030,694 ag ain st $170,359,459; b a n k e rs’ accept ances an d call loans to $37,663,398 ag ain st $39,844,637; and loans and dis counts to $124,870,570 ag ain st $121,540,434. Capital rem ained unchanged at $20,000,000, and su rp lu s at $50,000,000. U n divided profits w ere $7,904,714, an in crease for th e y ear of $1,160,660 after th e usual an n u al dividends of $3,600,000 ($1.80 p er sh are). T he indicated n et earnings on th e b a n k ’s 2,000,000 sh ares (par $10) am ounted to $2.38 per sh are for 1940, as com pared w ith $2.36 p er sh are for th e preceding year. Increased Earnings N et earnings of $332,005.32 for the y e a r 1940 have been rep o rted by the A m erican N ational B ank and T ru st Com pany of Chicago. T his figure re p lio r is P o p u la r HOTEL LINCOLN 4 4 ™ TO 45 th STS.AT 8 thAVE. OUR CHOICEST ROOMS From 1400 RO O M S each with Bath, Servidor, and Radio. * Four fine restaurants awarded Grand Prix 1940 Culinary Art Exhibition MARIA KRAMER " d . PRESIDENT John L. Horgan Gen. Mgr. M p* HOTEL EDISON SAME OWNERSHIP ■ . l L i n u |i i |i u u i IN THE CENTER OF MID-TOWN NEWYORK N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r ij 1 9 4 1 • resen ts n et operating profit afte r pay m en t of dividends on p referred stock, and afte r provisions for reserves, taxes and contingencies. T he 1940 n et earnings rep resen t $33.20 p er share on th e common stock of th e bank, com pared w ith $29.56 per share in 1939 and $23.41 p er sh are in 1938. D ividends of $6 p er sh are of com m on stock, to taling $60,000, w ere paid du rin g 1940. In Decem ber th e b a n k ’s su rp lu s ac count w as doubled by th e tra n sfe r of $1,000,000 from undivided profits and reserves, m aking th e su rp lu s $2,000,000. Capital stock to tals $1,600,000, $600,000 of th is am ount being in p re ferred stock; $50,000 w as also tra n s ferred du rin g th e y ear from undivided profits to p referred stock re tire m e n t fund. T otal deposits of th e A m erican N a tional B ank show a su b stan tial gain for 1940, increasing from $69,611,149 at the beginning of th e year to $79,089,872 a t th e year-end. D em and deposits in creased from $57,690,992 to $68,631,136, w hile savings deposits increased from $5,400,405 to $6,092,428. R esources of the b ank now to tal $84,433,856. A su b stan tial gain in loans and dis counts w as also revealed by th e yearend statem ents, th e to tal as of Decem ber 31st being $21,399,701, com pared w ith $16,957,052 a y ear ago. “N ineteen hun d red fo rty has been a y e a r of su b stan tial progress for th e A m erican N ational B ank and T ru st Com pany,” L aw rence F. Stern, p resi dent, said in his report. In addition to th e grow th, as indicated by th e sta te m en t and earnings figures, he points out several significant developm ents. “T he lease covering th e q u arters occu pied by us w as revised on a basis m uch m ore satisfactory to th e bank. The re vised lease also gives th e b an k th e im m ediate use of one additional floor in th e building, and contains an option on th ree o th er floors w hich m ay be tak en up as req u ired by fu rth e r g ro w th .” Mr. S tern also com m ents on th e P en sion P lan w hich w ill be subm itted to th e b a n k ’s stockholders for approval at th e ir an n u al m eeting on Ja n u a ry 14th. “The plan has been designed,” Mr. S tern points out, “to set up a pension system w hich will, as early as possible and as fully as th e earnings of the b ank w ill p erm it in accordance w ith sound banking and business practices, provide adequate and pro p er pensions for officers and em ployes w hen th ey reach re tire m e n t age.” D aniel P eterkin, Jr., w as added to th e b a n k ’s board d uring th e year, o ther directors being A rth u r L. Blakeslee, 77 • Jam es R. B rem m er, L. Lew is Cohen, W eym outh K irkland, C harles A. Liddle, Carl S. Lloyd, L aw rence F. Stern, M elvin L. S traus, R obert E. S traus, E dw in N. V an H orne, and H. B elin Voorhees. Mr. S tern concludes his re p o rt w ith only th is brief sta te m e n t concerning th e fu tu re, “The continued g ro w th of our b an k d u rin g 1940 indicates th a t it is occupying an increasingly im p o rtan t place in th e b u siness life of our com m unity. A lthough I h esitate to m ake an y gen eral p redictions in view of u n settled conditions, I believe th a t the com ing y e a r should be a satisfactory one for o u r b an k .” Annual Meeting A t a m eeting of th e directors and stockholders of th e Peoples State Bank, B atavia, all officers w ere re elected. T he m eeting w as held J a n u a ry 2nd a t th e bank. I O W A N E W S • K C 3 4 34 69 72 43 32 64 41 Central N ational Bank and Trust Company. .. . Chase N ational B an k .................................................... Chemical Bank and Trust Co............... - .................... City N ational Bank— C linton..................................... City N ational Bank and Trust Co............................ Commerce Trust Com pany......................................... Commercial Investm ent Trust, Inc.......................... Continental Illinois N ational Bank and Tr. Co.. Continental N ational B an k ......................................... L T he $297,636,000 new m oney w hich savings, b uilding and loan associations received d u rin g th e th ird q u a rte r of th e y e a r w as 12 p e r cent g re a te r th a n th e ir th ird q u a rte r, 1939, inflow from investo rs and savers, th e U nited States Savings and L oan L eague reported. George W. W est, p resid en t of th e League, said th a t it also rep resen ted a seasonal u p tu rn of som e $65,000,000 over th e in tak e d u rin g th e second q u arte r. July, w hich is a conspicuous m onth for in v estm en t changes, gives th e th ird q u a rte r of ev ery y e a r an edge over th e th re e m onths preceding. T he S eptem ber in v estm en ts in these th rift and hom e financing in stitu tio n s w as $75,249,000, w hich w as 24 p er cent g re a te r th a n in 1939. “W hy do you keep going out w ith Jan ice?” “Because I like to.” “L ike to w h a t? ” 6 68 George La Monte and S o n ........................... L ive Stock N ational Bank— Chicago . . Live Stock N ational Bank— Omaha . .. Live Stock N ational Bank— Sioux City 38 44 M D 31 74 McGuire W elch and C om pany.................... Merchants M utual Bonding Company. . . Merchants N ational B a n k .......................... M utual Surety Company of Iowa.............. Midland N ational Bank and Trust C o.. . D avenport Bank and Trust Co................................... 61 D avenport and Company, F. E ..............................43- •66 Des Moines Bldg. Loan and Savings A ssn........... 74 Drovers N ational B an k ................................................... 66 2 24 53 N E E llis and Company, L. E ............................................... Elms Hotel . , ........... ........................................................ Employers Mutual Casualty Co................................... Empire N ational B an k .................................................. N orthern Trust C om pany.............................................. 71 N orthw estern N ational L ife Insurance Co............. 22 26 77 74 52 O Omaha N ational B an k .................................................. 19 F P Federal Discount Corporation................... 31 F irst Federal Savings and Loan A s s o c ia tio n .... 74 F irst N ational Bank, Chicago ................................. 46 F irst N ational Bank, Lincoln ................................. 42 First N ational Bank, Omaha ................................... 40 F irst N ational Bank, St. L o u i s ............................. 70 F irst N ational Bank, St. P a u l ............................... 51 F irst N ational Bank, Sioux C i t y .......................... 60 First N ational Bank and Trust Co., Minneapolis 49 Philadelphia N ational B a n k ....................................... 54 S Security N ational B a n k ................................................ 13 Stock Yards N ational Bank, So. St. P a u l............... 48 St. Paul Federal Savings and Loan A ss’n ............. 75 G T General Motors A cceptance Corporation................ 30 Twin City Federal Savings and Loan A ss’n ......... 74 H New Money 75 Koch Brothers .................................................. U H awkeye Casualty C om pany....................................... Haw keye Mutual Hail Insurance A ss’n ................. Home Federal Savings and Loan A ss’n ................. Home Insurance C om pany............................................ Hotel L in c o ln ................................................................... 27 73 75 5 76 U. S. Check Book C om pany....................................... 39 U . S. N ational B a n k .................................................... 36 Union Bank and Trust Com pany..................... 67 V I Valley Savings B an k ....................................................... 69 Interstate Business Men’s Accident Co................... Inter-State Finance Corporation............................... Iowa-Des Moines N ational Bank and Trust Co.. . Iowa Investm ent Bankers A ss’n ................................. Iowa State Bank and Trust C om pany...................... 26 33 80 28 65 W W ant A d ............................................................................ Walters Company, Charles E ....................................... Waterloo Savings B a n k ................................................ Western Mutual Fire Insurance Company........... W essling S e r v ic e s ........................................................... J Jam ieson and C om pany.................................................53 77 65 40 63 25 12 REST* P L A Y - R E S T O R E HEALTH LET'S PEP UP WITH THE WORLD FAMOUS M IN ER A L W ATERS OF EXCElSlOP s p m r i n g s U IC C O IID I MISSOURI Curative mineral waters . . . Index to Advertisers Opportunities for all sports and recreations . . . Air 77 conditioned sleeping rooms . . . Write for information A Allen W ales Adding M achine Corp.......................... Allied M utual Casualty Com pany............................. A. C. A llyn and Com pany............................................ American Institute of B u sin ess................................. A merican N ational Bank and Trust Co................... Andrews H o t e l.................................................................. 79 24 35 75 62 60 B Bankers Trust Com pany............................................58-59 Brewer Company, V. W ................................................ 32 or reservations. ELMS HOTELJ N orth w estern https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker Jan u ary 19^1 78 In the D irectors ’ R o o m Just a Hint W hy? Sm ith: “W h at are you c u ttin g th a t piece out of th e p ap er fo r?” Jones: “It tells about a case w h ere a m an got a divorce because his w ife w ent th ro u g h his pockets.” Sm ith: “W h at are you going to do w ith it? ” Jones: “I ’m going to p u t it in m y pocket.” M other: “W hat are the young m an ’s in ten tio n s?” D aughter: “Well, h e’s been keeping me p re tty m uch in th e d ark .” Touch System He: “I ’m groping for w ords.” She: “W ell, you d id n ’t expect to find them aro u n d m y w aist, did you?” Malpractice An in v itatio n to d in n e r had been sen t to th e new ly-settled physician. In rep ly th e hostess received an abso lutely illegible letter. “I m u st know if he accepts or re fuses,” she declared. “ If I w ere you,” suggested h e r h u s band, “I should tak e it to th e druggist. D ruggists can alw ays read doctors’ letters, how ever badly th e y are w rit ten .” H is wife followed his advice. The d ru g g ist looked a t th e slip of notepaper, w en t into his d isp en sary and re tu rn e d a few m in u tes la te r w ith a bottle, w hich he han d ed over th e counter. “T here you are, m adam ,” he said. “T h a t w ill be seventy-five cents.” It Makes You W onder Six y e a r old M ary w oke up about tw o in th e m orning. “Tell m e a story, m am m a,” she pleaded. “H ush, d arlin g ,” said m other. “Daddy w ill be in soon and tell us both one.” Cautious Boss: “H ow long do you w a n t to be aw ay on y o u r honeym oon?” C lerk (tim id ly ): “W ell, sir—er— how long w ould you say?” Boss: “H ow do I know . I h a v e n ’t seen th e brid e.” Tact Judge O’F la h e rty : “H a v e n ’t you been before m e before?” P riso n er: “No, y er honor. Oi nev er saw b u t one face th a t looked loike yours and th a t w as a p h o ty g raf of an Irish kin g .” Judge O’F la h e rty : “D ischarged! Call th e n e x t case!” N orth w estern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1941 ‘Tain't Fair She (on th e p h one): “I ’m afraid y o u r d in n er w ill be bu rn ed a little to night, darling.” He: “W h at’s th e m atter? Did th ey have a fire at th e delicatessen?” No Hurry Dot: “W hat w ould you do if you sud denly saw an o th er m an ru n n in g aw ay w ith m e?” F ra n k : “W hy, I ’d sim ply ask him w hy he w as ru n n in g .” Drastic Treatment Just a Small One T eacher (pointing to a deer a t th e z o o ): “Johnny, w h at is th a t? ” Jo h n n y : “I don’t know .” T eacher: “W hat does y o u r m other call your fath er?” Jo h n n y : “D on’t tell me th a t’s a louse!” And How! W illie: “W h at is th e difference be tw een capital and labor, Dad?” Dad: “Well, son, th e m oney you lend re p re sen ts capital—and gettin g it back rep resen ts labor.” O r Ever Saw One S tate’s A ttorney: “A re you su re th is is th e m an w ho stole y o u r car last T h u rsd ay ?” M uch befuddled plaintiff: “Well, I was. Now afte r th e cross-exam ination, I ’m not su re I ever even ow ned a car!” Once Enough A fa th e r called up th e new spaper to re p o rt th e b irth of tw ins. The new s editor, n ot h earin g clearly, said, “W ill you rep eat th a t? ” “Not if I can help it!” w as th e em phatic reply. Easier Riding (S cratching): “How do you get rid of these aw ful cooties?” “T h a t’s easy. Take a b ath in sand and ru b dow n in alcohol. The cooties get d ru n k and kill each o th er th ro w ing rocks.” Alas, Poor Yorick! W hen Mrs. B erg’s expensive new fu r coat w as delivered to h er hom e, she fondled it ecstatically for a tim e, and th en looked sad for a m om ent. “W h a t’s th e m atter, a re n ’t you satis fied w ith it? ” in q uired h e r husband? “Yes,” she answ ered, “b u t I feel so so rry for th e poor th in g th a t w as skinned.” “T h an k s,” said Mr. Berg. Note This T here w as an old girl of Genoa, I blush w hen I th in k w h at Iowa. She’s gone now to rest, W hich I th in k ’s for th e best, O therw ise I w ould borrow Samoa. Ask the C a t M other: “Stop asking so m any ques tions. Don’t you know th a t curiosity killed th e cat?” Small d aughter: “Is th a t so? W hat did th e cat w an t to know ?” No W onder A girl w as driving in h e r new car w hen som ething w en t w rong w ith the engine. The traffic light changed from green to red and back to green and still she could not get th e car to budge. The traffic cop cam e up. “W h a t’s th e m atter, M iss?” he in quired. “A in’t we got colors you like?” like?” Joe: “You look dow n-hearted, old m an. W h at are you w orried about?” Bill: “My fu tu re.” Joe: “W hat m akes your fu tu re seem so hopeless?” Bill: “My p ast.” “You say h e’s 94, nev er looked a t a girl in his life, and doesn’t sm oke, d rin k or gam ble?” “Aye—B eats me w hy he w anted to live so long.” A young w om an w alked into a ra il road ticket office in Chicago and asked for a tick et to New York. “Do you w ish to go by Buffalo?” asked th e tick et agent. “C ertainly not!” she replied, “I w an t to go by tra in .” More Than 100 Different ALLEN WALES Models More Than 400 Distributing Points in U. S. A. More Than 600 Percent Increase in Sales In The Past 6 Years These Figures Are Of Importance To All Users of Adding Machines M anufactured Since 1903 ALLEN WALES Machines Are Recognized For Their ACCURACY-SPEED and DEPENDABILITY Our Low Priced Counter Machine To Let You Try One Without Obligation—Telephone Them or Write Us ALLEN W A LES A D D IN G M A C H IN E C O R P O R A T IO N 4 4 4 Madison Avenue, New York, N. Y. SALES AND SERVICE IN 4 0 0 AMERICAN CITIES AND IN 4 0 FOREIGN COUNTRIES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A Year of Progress ★ Condensed Statements of Condition ★ D ecem ber 31, 1940 D ecem ber 31, 1939 RESOURCES RESOURCES Cash and Due from B a n k s ............................$21,415,291.23 *U. S. Government S e c u r it ie s .................... 7,831,336.44 State, County and M unicipal Securities 4,375,667.72 Federal Reserve Bank S t o c k .................... 105,000.00 Other Bonds and S e c u r i t i e s .................... 226,225.86 Loans and D i s c o u n t s ............................... 15,233,085.22 Interest Earned but Not Collected 123,025.54 Cash and Due from B a n k s ......................... $17,801,694.11 *U. S. Government S e c u r it ie s .................... 8,565,673.28 State, County and M unicipal Securities 4,008,966.12 . Federal Reserve Bank S t o c k .................... 106,500.00 Other Bonds and S e c u r i t i e s .................... 322,518.98 Loans and D i s c o u n t s ............................... Interest Earned but Not Collected . . . 120,295.25 Bank P r e m i s e s ......................................... Furniture, Fixtures and Vaults . . . . 1,548,495.51 91,479.69 Bank P r e m i s e s ......................................... O v e r d r a f t s .............................................. 2,102.38 10,150.00 O v e r d r a f t s .............................................. Customers’ Liability on Letters of Credit Furniture, Fixtures and Vaults . . . . Customers’ Liability on Letters of Credit and A c c e p t a n c e s ......................................... *$4,164,237.67 U. S. Government Securities pledged to secure Public and Trust Department Funds. ......................... $ 2,500,000.00 .................................... None 1,633,136.62 191,292.91 Capital Stock, Common ......................... $ 1,750,000.00 Capital Stock, P r e f e r r e d .......................... Surplus and Undivided Profits Special Reserves . 102,994.94 Interest Collected but Not Earned 10,150.00 46,524,285.12 Letters of Credit and Acceptances . . . . . 1,250,000.00 977,205.61 .................................... Letters of Credit .................................... D E P O S I T S .............................................. Interest Collected but Not Earned 18,889.95 LIABILITIES Capital Stock, P r e f e r r e d .......................... Surplus and Undivided Profits . . . . Special Reserves 3,188.68 $46,025,024.9 LIABILITIES Capital Stock, Common 1,600,430.00 95,587.34 $50,961,859.59 *$2,885,192.28 U. S. Government Securities pledged to secure Public and Trust Department Funds. 13,381,281.22 277,851.25 83,395.64 . . . 18,889.95 D E P O S I T S ......................................... . 41,667,682.48 $50,961,859.59 $46,025,024.93 I o w a ' s L a r g e s t Ban k Io w a - d es Moin es national & Trust C om pany Member oF The Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis bank