Full text of The Northwestern Banker : January 1942, Forty-Seventh Year, Number 654

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1942

JO H N S. F L E E K
President, Investm ent Bankers A ssociation of A m erica
C leveland


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Federal Reserve Bank of St. Louis

A

FO R EC A ST FOR 1 9 4 2
Page 16

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Merchants National B ank
C E D A R R A P I D S , I OWA
Statement o<* Condition, December 31, 1941
LIABILITIES

RESOURCES

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»

$11,152,449.24

Loans and Discounts

C apital Stock

4 nited States Governm ent
Securities

5,274,750.00

State, County and M unicipal
11,346,691.46
Bonds

Surplus

394,000.00

O ther Bonds

156.56

Overdrafts

U ndivided Profits

573,701.43

1,041,315.82

Bank Prem ises

Cash on H and, Due from
Banks and U. S. Treasurer ■ 19,479,886.22

Deposits

$48,689,249.30

$48,689,249.30

DIRECT ORS

i# '

R obert C. A rmstrong
F. A. B eats
Karl P. B laise
H. N. B oyson
E. B. Cameron
E. J. Carey
H oward H. Cherry
Robert S. Cook
S. E. Coquillette
Roy E. Curray
H oward H all,

J ames E. H amilton
J ohn T. H amilton , II
H orace G. H edges
Ralph D. Hunting
E. D. McCartney
E. M. P inney
A. J. Ramsey
C. B. Robbins
E lmer A. R unkle
I saac B. S mith
Richard E. Killian

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, published monthly by the De Puy Publishing Company, Inc., at 527 7th Street, Des Moines, Iowa.
Subscription, 35c per copy, $3.00 per year. Entered as second-class matter at the Des Moines post office. Copyright, 1942.


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3

THE CHASE
NATION AL BANK
OF THE CITY OF NEW YORK

Statem ent oj Condition , December 31, 1941
RESOURCES
C ash and D ue from B a n k s ..................................................................... #1,248,516,343.94
U. S. G overnm ent O bligations , direct and fully
g u a r a n t e e d ................................................................................................
1,364,84 / ,274.20
S tate a n d M unicipal S e c u r i t i e s ......................................................
125,045,060.17
S tock of F ederal R eserve B a n k ......................................................
6,016,200.00
O ther S e c u r it ie s ..........................................................................................
194,989,187.80
L o ans , D iscounts and B a n k e r s ’ A cceptances ...............................
802,221,308.65
B a n k in g H o u s e s ..........................................................................................
37,775,473.15
O ther R eal E s t a t e ....................................................................................
6,842,700.13
M o r t g a g e s ......................................................................................................
8,729,425.18
C ustom ers ’ A cceptance L i a b i l i t y ......................................................
6,965,977.86
Other A s

s e t s

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

9,853,853.88
#3,811,802,804.96

L IA B IL IT IE S
C apital F u n d s :
C apital S t o c k ...........................................................#100,270,000.00
S u r p l u s . ..................................................................
100,270,000.00
U nd iv id ed P r o f i t s ..........................................
40,369,834.49
D iv id en d P ayable F ebruary 1, 1942 ...........................................
R eserve for C o n t in g e n c ie s ..................................................................
R eserve for T a x e s , I n ter est , etc .......................................................
D e p o s i t s ............................................................................................................
A cceptances O u t s t a n d i n g ..................................................................
L ia bility as E ndorser on A cceptances and F oreign B ills .
Other L ia b il it ie s ..........................................................................................

# 240,909,834.49
5,180,000.00
11,375,028.06
3,032,603.47
3,534,966,617.22
8,241,999.24
575,267.46
7,521,455.02
#3,811,802,804.96

U nited States Governm ent and other securities carried at ?354,906,037.00 are pledged to secure
public and trust deposits and for other purposes as required or perm itted by law.
Member Federal Deposit Insurance Corporation

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January 1942

4

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A

,

W E L L W E T O O K I T STAN DI NG V P and kept
co m in g back fo r m o re, and the first th in g we knew
the d ep ressio n was over, the “ recessio n ” was over
and — h an g! — alo n g cam e the D e fe n se P rogram .
M A N Y OF T H E W I S E R H E AD S ad m itted that m aybe
th e p u b lic d id n ’t k n o w en o u g h about th e b an k s;
m aybe th e p u b lic k n ow s too little ab ou t th e hanks
n ow ; m aybe th is is the tim e to tell th em how
t he A m e r i c a n B a n k i n g S y s t e m d ov et ai l s wi t h t he
A m e r i c a n W a y o f life.

m

THIS IS T H E TIME. T h ere will n ever be a greater
o p p o rtu n ity to w in g ood w ill than NO W , w ith the hanks
co o p era tin g w ith the g o vern m en t to the fu lle st exten t.

5

7

T HE FINANCIAL A D V E R T I S E R S A SS OC I AT I O N
CAN H E L P Y O U “ tell the p u b lic about you r h a n k ,”
what it is d o in g to aid the gov ern m en t and what
it is d o in g to so lve Mr. A verage C itizen’s financial
p rob lem s. T h e FAA w ill give you practical, con crete
h elp in you r p u b lic relation s job ri ght n o w , w hen a
good P u b lic R elation s Job is n eed ed m ost.
for fu ll in fo rm a tio n .

W rite

b etterm en t o f a d v e r tis in g .. . p u b lic ity . . .

FINANCIAL ADVERTISERS
ASSOCIATION

new b u sin ess m e th o d s . . . p u b lic relation s

P r e sto n

A

n o n - p r o fit

org a n iza tio n

fo r

th e

E.

Reed — E xecutive

231

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 19V2

V ice-President

S. LA SALLE ST.— C H IC A G O

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W h e n effi ci ency is a t stake, as w as the case at the
G u a r a n t y Ba nk & Trust Co., A l e x a n d r i a , La., no
m o d e r n iz a tio n - m in d e d b a n k e r can afford a n y ­

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thing but e x p e rt advice.

S o lv in g this b a n k 's

p r o b l e m s c a l l e d f o r m or e t h a n " r e - a r r a n g i n g "
fixtures . . .
G uaranty's

or decorating
problem s

were

the

interio r.

far

more

The

fu n d a ­

m en tal, r e q u i r i n g the e x p e r i e n c e o f e xpe rts.
If, l i k e m o s t b a n k e r s , y o u l a c k c o n f i d e n c e in
o r d i n a r y m e t h o d s o f m o d e r n i z a t i o n , c o n s u l t us.
J u st m a i l t h e c o u p o n b e l o w .

N o o bligation.

BA N K E R S INTERESTED
in the m o d e r n iz a t io n o f
hotels, re staurants, c lu b s
a n d a ll o th e r co m m e rcia l
b u ild in g s s h o u ld g e t in
touch w ith o u r su b sid ia ry

^BANK BUILDING & EQUIPMENT CORPORATION of America, 9th & SIDNEY STS., ST. LOUIS, MO. • Chicago, Cleveland

Desiqn
C0RP0RATE0

FOR THE MODERN W AY TO MODERNIZE

CALL IN THE EXPERTS . . .

1

Gentlemen: O n or a b o u t

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W ithout obligation

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New Fix(ures

Bank-----


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Federal Reserve Bank of St. Louis

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INSURANCE
Æ ds f/u /m h 'ia / TéamworA
s

it s y n t h e t ic ?

” people often ask about new products. T he tru th

is th a t practically every article you see, every p ro d u ct you touch
is synthetic — in effort if n o t com position. For all goods, from the
simple sugar cube to the delicate instrum ents of a plane, follow the
com bined effort of individuals and machines in m any industries: coal
mines, oil refineries, steel mills, pow er plants, copper smelters, farms
and factories . . . working together as a unit.
A broken link anyw here in the great chain of p roduction is a
flat tire th a t halts progress and deflates o u tp u t in every stage from
the farm or the mine to the pretty paint finish. N o t until this blow ­
o u t is repaired can the m arch of defense resume for men an d machinery,
trains and trucks, executives an d engineers. T oday as never before,
the nation stresses the value of agencies whose task is to stop stoppage
and to clear the track for high speed in defense m anufacture. Insurance,
a spare tire for defense, strives to keep I n d u s t r ia l T e a m w o r k going!

THE HOME ☆
N E W


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Federal Reserve Bank of St. Louis

Y O R K

By prom ptly re­
placing pro p erty
losses Insurance is indus­
try's spare tire for defense.
W hen m ishaps occur, it
cushions th e financial shock
by indem nifying lost funds
intended for taxes, rents,
b o n d interest,m aintenance,
profit incentive, etc. Invest­
ing its reserve dollars in
industry, Insurance tends
to stabilize financial re­
quirem ents fo r production.
.

J A N U A R Y

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19 4 2
N U M B ER 6 54

F O R T Y -S E V E N T H Y E A R

Oldest Financial Journal West of the Mississippi River

CLIFFOR D DE PUY
Publisher
RALPH W. M O O R H E A D
Associate Publisher
HENRY H. H A YN ES
Editor
J. STUART D A V IS
Associate Editor
527 Seventh Street,
Des Moines, Iowa
Telephone 4 -8163

•
N E W Y O R K OFFICE
Frank P. Syms
V ic e President
505 Fifth A v e .
Suite 1202
Telephone M Urray H ill 2 -0 3 2 6

IN

T H IS

IS S U E

Editorials
A c ro ss th e D esk fro m th e P u b lish e r.

8

Feature A rticle s
F ro n tisp ie c e ....................................................................................................................................
A ll O u t to W in th e W a r ................... ..................................................................... ...... .............
N ew s a n d V iew s A lo n g th e A tla n tic C o a st..........................................Clifford De P u y
A F o re c a s t f o r 1942............ ...............................................................................K. K. D uV all
L eg al D e p a rtm e n t— P e rso n s in M ilita ry S erv ice............................ ...............................
N ew B u ild in g s a n d R em o d elin g ..............................................................................................
T h e 4 P ’s o f P u b lic R e la tio n s....................................................................... S . J. K ryzsko

11
12
14
16
18
20
22

Insurance
B a n k th e C om m ission A f te r th e F i r s t In te rv ie w ............ .................. N. A . H erberts 25

M IN N E A P O L IS , OFFICE
Jos. A . Sarazen
Associate Editor
Telephone Hyland 0575

•

Bonds an dln ves tm ents
T h e M o n th ’s M a rk e t M a n e u v e rs............................................................ Jam es H. Clarke 29
F o o tb a ll’s M a n -o f-th e -Y e a r ................................................... ........................ ........................ 31
O rd n a n c e P la n t S te p s U p A c tiv ity .............................................. ........................................ 32

CONVENTION CALENDAR
A B A M id -W in te r T r u s t C o n fe ren ce—
W a ld o r f-A s to r ia H o te l, N e w Y ork
C ity , F e b r u a r y 3-5.
A B A E x e c u tiv e C o u n cil S p r in g M e e t­
in g — T h e H o m e ste a d , H o t S p r in g s,
V ir g in ia , A p r il 19-22.
A m e r ic a n I n s t it u t e o f B a n k in g — N e w
O r lea n s, J u n e 8-12.
A B A A n n u al C o n v e n tio n — B o o k -C a d illa c H o te l, D e tr o it, S ep tem b er 2 2-O cto b er 1.

STATE MEETINGS
W is c o n s in M id -W in te r C o n fe ren ce—
H o te l P fiste r, M ilw a u k e e , J an u ary
21 - 22 .
I lli n o i s M id -W in te r C o n fe ren ce— C h i­
c a g o , J a n u a r y 22.
I o w a G roup O n e— S io u x C ity , F e b r u ­
ary 12.
I o w a Group E le v e n — B u r lin g to n , F e b ­
ru ary 23.
I llin o is A n n u a l C o n v e n tio n — S t. L o u is ,
M a y 20-22.
S o u th D a k o ta A n n u a l C o n v e n tio n —
C a ta ra ct H o te l, S io u x F a lls , Ju n e
3-5.
M in n e s o ta A n n u a l C o n v e n tio n — H o te l
D u lu th , D u lu th , J u ly 8-10.


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Federal Reserve Bank of St. Louis

State Banking News
M in n e so ta N e w s............ ....................................................
T w in C ity N ew s.................................
S o u th D a k o ta N ew s....................................................
N o rth D a k o ta N ew s.....................................................................................................
A M illion a D a y in 1941................................................................................ ....................
N e b ra sk a N ew s ..................................... ........................................................P aul W. Shooll
O m aha C le a rin g s ................................................................................................................
S p o n so rs A n n u a l C orn S how ......................................
L in co ln L o cals ...........
Io w a N ew s ............................................................................................................
A R em edy f o r In fla tio n F e v e r............................................................ .............................
O ccupy N ew B u ild in g ............................................................................. -...........................
Io w a N ew s fro m H e re a n d T h e re ............ .......................................... J. A . Sarazen
B a n k S ta ff a t X m as P a r t y ...........................

35
37
41
43
43
45
47
48
49
51
51
55
62
66

The D irectors’ Room
A F e w S h o rt S to rie s to M ake You L a u g h ......................................................................... 78

8

Across th e Desk
From th e Publisher

Business W ill Be "O n
the March" When
,I

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i•

cj .

The U nited States

is at war-

Troops are on the
the Marching btops
,
r
m arch.
Men and m achines are shifting into high gear
to produce the weapons w ith which to annihilate
the jealous Ja p s and the H itler hell-raisers.
B u t m any people are asking, “ A fte r we have
won the w ar, then w h a t? ”
W ill th ere be an o th er depression?
W h at will we do w ith the unem ployed?
How can we solve our economic problem s when
B erlin is bombed and Tokyio is taken?
One answ er to this was given by D ean W. B.
Donham of the H a rv a rd Business School, who
s a id :

“ The first and most important thing that busi­
ness men ought to do is to get out of their present
defeatist frame of mind. Business morale needs
to be rehabilitated.
“ Specifically, business men should stop expect­
ing that there will be a tremendous depression
after the present emergency because (1) the
period following the World War does not support
this view, (2) there will be tremendous shortages
of all sorts of consumer goods after the war,—
even more so than after the last war, and (3) the
present attitude of business in expecting a de­
pression is the surest way to produce a depression.
“ All the record of history points to the fact
that wars set in motion great technological
changes and encourage great bursts of productiv­
ity. The full impact of these changes and the
enhancement of productivity comes in the period
after the war is over. There is no reason except

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1942

the reasons that lie within our own hearts and
minds why this cannot be true again. I believe
that business men who go around with long faces
saying that America has reached economic ma­
turity and there is no further basis for progress
are signing their own economic death warrants.
“ The next most important thing that business
men can do is to develop product research and
new uses research as actively as possible during
the current period in order to be ready with all
kinds of new products for the market of tomor­
row. ’’

r'

W e believe th a t business will be on the m arch
when the m arching stops.
H enry A. W allace, vice president of the U nited
States, in a recent article, said:

“ But one of the hopeful signs for the future is
the very fact that the possibility of depression is
so widely recognized. This increases the chance
that action will be taken in time to prevent it or
at least cushion the shock.
“ The basis for such action can best be laid now,
while the war is still in progress. It must be laid,
at least in part, in the plans for expanding and
regularizing world trade, world production, world
consumption.
“ This is the new frontier, which Americans in
the middle of the twentieth century find beckon­
ing them on.”

7

■u.

Thus, by recognizing th a t we m ust prepare for
a tran sitio n period, we are less likely to have a
depression when the w ar is over, and th ro u g h
the laboratories and research departm ents of our
in d u strial organizations, business is “ on the
m a rc h ” to tak e up the slack when the m arching
stops.

\

9

Keep Funds In
A Relatively
Liquid Position

In reading over the vari-

ous

y ear end re P°rts and
reg ard in g bank
^
investm ents, we find one
th o u g h t ru n n in g thro u g h m ost of them , th a t banks
should keep th eir funds in a relatively liquid posi­
tion.
One well know n investm ent banking au th o rity
points out t h a t :
‘ ‘B eca m e o f the u n certa in ties in the period
ahead, careful investo rs w ill do w ell to m a in ta in a
re la tiv e ly liq u id position. A b ility to rea d ily s h ift
course in order to avoid n ew ly developing diffi­
culties or to take advantage o f u n e xp ected oppor­
tu n itie s, is obviously m ore im p o rta n t th a n in a
period o f m ore stable character. A reasonable pro ­
p o rtio n o f sh o rter m a tu ritie s or o f rea d ily salable
longer te rm issues should therefo re be in clu d ed in
o n e ’s p o rtfo lio . A s purchases o f g o vern m en t bonds
are increased, these m a y well serve as the liquid
fu n d , p e r m ittin g purchase o f good q u a lity, b u t not
necessarily h ig h ly liq u id , corporation or m unicipal
bonds to b ring u p the average y ie ld .”

Since governm ent bonds are considered as very
liquid, th ere is no reason, as this au th o rity points
out, th a t additional funds, or a t least a p a rt of
them , c a n ’t be used to buy corporation or m u­
nicipal bonds w hich m ay have a higher yield th an
governm ent securities.
K eeping your funds relatively liquid, however,
is generally a p re tty good policy to follow.
Only as business succeeds
can the governm ent in­
crease its ta x income.
W hen a business goes
b an k ru p t, th ere is no income to t a x ; therefore, it
is a wise policy if the governm ent allows business
to succeed so th a t the governm ent, in tu rn , can
collect taxes w ith which to carry on the affairs of
governm ent.
A t a recent m eeting of the N ational Association
of M anufacturers, the follow ing p latform was
recom m ended to the g o v ern m e n t:

How to Help
Business and the
Government

“ 1. Make investments attractive by allowing
both business and individuals who risk their
money to keep enough earnings to make the ven­
ture worthwhile.
“ 2. Have tax policies which encourage, not
penalize, reserves and savings.
“ 3. Hold the public debt to a size which will
not further endanger the value of our currency.
“ 4. Change securities laws and regulations so
financing of honest business will not be burdened
with unnecessary red tape and expense.

“ 5. Maintain banking and credit policies which
will provide enough credit for expanding needs of
business but will prevent excessive speculation.”
If such a platform could be followed by the
governm ent, it would help business and help the
governm ent.
Now, more th an ever before, the governm ent
and business should w ork closely together.
D uring the past fo u r
and one half years the
H a rv a rd Business School
has been m aking a special
study of advertising and its relationship to busi­
ness and to our everyday economy.
This re p o rt has ju st been released, and in com­
m enting on the findings, P rofessor Neal H. B orden
says:

How Advertising
Has Expanded
Our Economy

‘‘Advertising’s outstanding contribution to con­
sumer welfare comes from its part in promoting a
dynamic, expanding economy. Advertising’s chief
task from a social standpoint is that of encourag­
ing the development of new products. It offers a
means whereby the enterpriser may hope to build
a profitable demand for his new and differentiated
merchandise which will justify investment. From
growing investment has come the increasing flow
of income which has raised man’s material wel­
fare to a level unknown in previous centuries. ’’
B anks have benefited from advertising of v a r­
ious products throughout the U nited States, be­
cause this advertising has created a dem and,
which, in tu rn , has m eant the financing of fac­
tories and equipm ent to produce these articles,
and thus, banks have profited from an expanded
economy.
In tu rn , banks them selves are today using ad ­
vertising more th a n ever to tell th eir sto ry and
to create good will and im prove the public re la­
tions angle of the banking business, because, afte r
all, the hank does not sell a product, b u t a service.
A dvertising in Am erica today is a two billion
dollar industry, and advertising and aggressive
selling have helped to b ring a trem endous expan­
sion of new and im proved products, upon which
technological developm ent and increasing invest­
m ent have depended.
This trem endous grow th, w hich has given us
articles of m erchandise and individual service at
a low er cost th a n we m ight otherw ise have had
to pay, has m aterially contributed to our personal
and national w elfare.

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Federal Reserve Bank of St. Louis

January 19b2

10

S TA TEM EN T OF C O N D I T I O N
At Close of Business December 31, 1941

Iowa'sFriendly

"

"

CENTRAL
NATIONAL
BAM
AND TRUST COMPANY
M E M B E R

F E D E R A L

D E P O S I T

RESOURCES
Cash and due from
F ederal Reserve
and o ther banks $12,828,639.90
United States
Governm ent Se­
curities _______ 3,187,000.95
O b l i g a t i ons of
U nited S t a t e s
G o v e rnm ental
A g e n c ie s _____
5,185,041.36 $21,200,682.21
M unicipal S ecu rities____________ 1,381,193.45
M arket B o n d s _________________
826,673.21
Loans and Discounts____________ 12,694,325.31
Overdrafts _____
1,643.74
Stock Federal Reserve B ank_____
44,100.00
Accrued Interest R eceivable____
135,269.09
B ank Prem ises and E q uipm ent__
286,175.24

I N S U R A N C E

C O R P O R A T I O N

LIA B ILITIES
Demand Deposits_$25,381,075.58
Savings Deposits- 2,238,370.68
P ublic D eposits_ 6,524,399.02 $34,143,845.28
Discount C o lle c te d _____________
Common S to c k __ $1,000,000.00
P referred Stock__
250,000.00

135,555.10

1,250,000.00
485,000.00
203,400.79

Surplus ----------------------------------U ndivided P r o f its ______________
Reserve for R etirem ent of
P referred S to c k ______________
O ther R e s e rv e s ________________

T o t a l ___ _________________ $36,570,062.25

Total

250,000.00
102,261.08
$36,570,062.25

U n ite d S ta te s G overnm ent and other se c u r itie s c arried at $1,125,685.00 are p le d g e d to secu re pu b lic and
tru st d e p o sits as requ ired b y law .

DIRECTORS
G. E . B R A M M E R
BRAM M ER, BR O D Y , C H A RLTO N & PARKER

E. F . B U C K L E Y
V IC E P R E S ID E N T

GUY E. LO G A N
P R E S ID E N T , S T A N D A R D

C H E M I C A L CO.

W A L T E R E . M U IR
G E O R G E A. P E A K

HARRY GOLDM AN

REAL ESTATE

P R E S I D E N T C. C. T A F T CO.

J U L IA N P E V E R I L L

W M . J. G O O D W IN

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 P A N Y

C H A IR M A N B O A R D O F D I R E C T O R S

H . F. G R O SS
S E 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 SS N .

G R O V E R C. H U B B E L L

C H A S . N. P I E R C E
V IC E P R E S I D E N T , L A N G A N

PAPER

COM PANY

W A L T E R L. S T E W A R T
G IB S O N , S T E W A R T

& GARRETT

W . E. T O N E
REAL ESTA T E

H E N R Y M. W IL S O N
V IC E P R E S I D E N T , C U S H M A N - W I L S O N

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Federal Reserve Bank of St. Louis

January 19k2

O I L CO.

Northwestern Banker
January 1942

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Federal Reserve Bank of St. Louis

12

AH Out to

W in the W ar

Two Immense Defense Projects Near Omaha W ill Contribute
to Victory of American Fighting Forces
IT ’S “THUMBS UP!” in Omaha.
I You’ll find an optim istic, y e t a grim .
' iron-fisted sp irit prev ailin g h ere in
N eb rask a’s largest city as A m erica
again b attles w ith in te rn a tio n a l b a n ­
ditry. I t ’s a fighting d eterm in atio n to
produce—and produce fast—food and
w ar m aterials w hich Uncle Sam w ill
need from th is area.
W ith th e best farm outlook in y ears
and a defense boom tossed in for
good m easure, Om aha business is
ru n n in g in high gear and is to be
stepped up even fa ste r in th e m onths
ahead.
Sym bolic of O m aha’s desire to help
w in th e w ar by gearin g up local p ro ­
duction, w orkm en are racing ag ain st
tim e to begin operations a t F o rt
Crook’s $15,000,000 bom ber assem bly
p lan t ju s t so u th of th e city lim its.
Planes are scheduled to be com ing off
the line in th e sp rin g and peak em ­
ploym ent w ill be about 8,000.
Thirty-five m iles w estw ard, engi­
neers are m apping a 31 square m ile
site for th e $30,000,000 F iresto n e bom b­
loading p la n t and co n stru ctio n w ill
be u n d er w ay by spring. W hen oper­
ations s ta rt 4,000 are expected to be
em ployed b u t it w ill tak e 7,000 to
8,000 a t peak, to build th e plant.
W alk dow n F a rn h a m S treet today
and you find these tw o gigantic p ro j­
ects th e prin cip al topics of conversa­
tion. B u t th e re ’s an o th e r v ital role
w hich Om aha is playing in th e w ar
effort and w hich O m ahans often take
for g ranted. Down in O m aha’s v ast
stock yards, a b a tte ry of 14 packing

p lan ts flank a m illion dollar live stock
exchange center. One of th e w o rld ’s
larg est livestock and m eat packing
cities in Om aha is m aking an “ALL
OUT” effort to help feed the fighting
forces.
C udahy Packing Co. com­
pleted a m eat canning p lan t less th a n
a y e a r ago and 600 are em ployed in
th a t b ranch alone. A rm our & Co.’s
new m eat-canning factory w ill em ploy
500 w ith in th e n ex t 30 days.
Om aha firm s played a m ajo r p a rt
in h an d ling contracts for th e bom ber
p la n t construction. A bout 650 m en
are em ployed by th e Omaha Steel
W orks, w hich has a $3,000,000 con­
tra c t for shell casings. L ast y ear at
th is tim e 206 w ere employed. A nd a
$483,875 p lan t expansion has been
authorized. Jerp e Com m ission Co. is
co n stru ctin g a $340,000 p lan t for egg
drying. Scott M anufacturing Co. has
had several large contracts for canvas
products and now em ploys 300. Five
h u n d red m ore are em ployed by v a ri­
ous sm all m an u factu rers.
T ran sp o rtatio n is an o th er p a ra ­
m o u n t factor in Omaha. F o u rth larg ­
est rail center in th e w orld, Om aha is
served by ten m ain line roads. H ead­
q u a rte rs of th e U nion Pacific R ailroad
Co. are located here and th e Com pany
is one of ten billion-dollar corporations
in th e country. Twenty-five h u n d red
m en w ere em ployed by the U. P. d u r­
ing th is y ear on box car construction
in Omaha. M ore th a n 2,025 cars have
been b u ilt to date and th e payroll for
m aterial and labor has now hit the
$7,000,000 m ark for th is job alone.

2. R eady fo r the sta rtin g gun is the g ig an tic M a rtin bom ber assembly
p lan t w hich goes into production soon. Costing $15,000,000 and cover­
ing six square blocks, it is located a t F o rt Crook, a few miles from
Omaha.

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Federal Reserve Bank of St. Louis

January 19J2

D uring th e 12 m onths ahead 2,000
m ore cars w ill be b u ilt by th e road.
T ruck lines are on a round-the-clock
schedule in Om aha hauling vital de­
fense goods and hu n d red s of th o u ­
sands of dollars’ w o rth of livestock
to th e Om aha m ark et each m onth.
P relim in ary barge service has already
been established on th e M issouri
R iver and Omaha expects to have an
o utlet to th e sea, dow n th e riv e r an d
out into th e Gulf.
T he farm outlook is th e b est in
years. N eb rask a’s cash incom e from
farm m arketings, including g overn­
m ent paym ents, increased $19,735,000
in th e first nine m onths of 1941 over
the sam e period a y ea r ago. The
B ureau of A g ricultural Econom ics re ­
ported a sh arp decrease in govern­
m en t paym ents due to increased cash
incom e from farm m ark etin g alone.
The January-S eptem ber total farm in ­
come for N ebraska w as $217,200,000 in
1941 as com pared w ith $197,465,000
last year.
Iow a price index figures on farm
products for N ovem ber 15, 1941, show
138 p er cent as against 104 p er cent
on th e sam e date last year. T h at
figure applies to all farm products.
Ratio of farm prices received to th a t
paid by farm ers is 97 th is y e a r as
com pared to 83 a y ear ago.
The F o rt Crook bom ber assem bly
p lan t is a $15,000,000 job, b u t listen to
th is—cash paid livestock producers a t
the Om aha Stock Y ards du rin g th e
first 10 m onths of 1941 w ould build
10 bom ber plants! In fact, you could
build one each m onth so far this year,
for th e $143,835,000 paid to producers
show s a 27.71 per cent increase over
th e sam e ten-m onths period in 1940.
I t ’s g re a te r th a n th e en tire am ount
paid out last year and m ore th a n th a t
for an y en tire y ear since 1934, w ith
th e exception of 1936, a d rought year,
w hen shipm ents w ere abnorm al.
A survey of m a n u fa c tu rers’ em ­
ploym ent by th e Omaha Cham ber of
Commerce show s a 23.2 per cent in ­
crease for October as com pared w ith
a y ear ago. Six of eight principal
business indicators for N ovem ber
show increases over th e sam e m onth
last year.
G rain shipm ents (bu.)
are up 264.4 per cent. G rain receipts
(bu.) show an increase of 141.1 per

13
cent. O ther increases: B uilding p e r­
m its ($) 49.4 p er cent (m ost of th e
b uilding is not reflected in th is figure
since it is going on outside th e city
lim its); b an k debits ($) 25.2 p er cent;
b ank clearings ($) 23.1 per cent; p o st­
al receipts ($) 5.4 p e r cent. A de­
crease of 15.9 p er cent in livestock re ­
ceipts is offset m any tim es over by th e
increase in value. R eceipts slau g h ­
te re d in Om aha dropped 23.9 p e r cent.
T he long ran g e view is also good.
F o r th e 12 m o n th s ending N ovem ber
30, six 1941 figures w ere h ig h er th a n a
y e a r ago and tw o w ere lower. B ank
clearin g s w ere up 16.0 p e r cent; b ank
debits 18.9 p er cent; building p erm its
2.6 p er cent; g rain receip ts 7.9 p er cent;
g ra in sh ip m en ts 51.0 p er cent; and
postal receip ts 30.6 per cent. L ive­
stock receipts dropped 7.9 p er cent
and livestock slau g h tered in Omaha,
v

1. “ Food w ill w in th e w ar and m ake th e p eace.” Omaha, w ith its great
stockyards and 14 p ack in g plan ts, is doing its p a rt in the b a ttle behind
the lines.

4.0 per cent.
R etail buying is brisk. E m ploym ent
is high.
P ayrolls are large.
B ut
enough of statistics for th e m om ent.
A n o th er a irp o rt im provem ent p ro j­
ect—th is one to cost $1,080,000 is g et­
tin g u n d e r w ay a t O m aha’s m unicipal
field. Om aha already has one of th e
finest a irp o rts in th e co u n try —large
enough to accom m odate any plane
now flying or any proposed. T his
p ro ject w ill m ean m ore jobs, m ore
m aterials and m ore business in
Om aha, to say no th in g of w h a t it w ill
m ean in th e w ay of increased traffic
a t th e field.
A n o th er business boost is th e in ­
crease in m ilitary activity. Om aha
is h e a d q u a rte rs for th e U. S. A rm y’s
7th Corps Area. More th a n 525 offi­
cers, enlisted m en an d civilians are
em ployed th e re as com pared w tih 200
a y e a r ago. T he Zone C onstructing
Q u a rte rm a ste r’s office em ploys 325 in
Omaha-—an office w hich did n o t exist
a y e a r ago.

M uch of th e geared-up business
tem po m ay be traced to th e direct and
in d irect effects of the bom ber as­
sem bly p lan t at F o rt Crook. L et’s
look a t th e project briefly. B uilt by
th e G overnm ent at a cost of $15,000,000, its m ain building covers six square
city blocks of space. It w ill be oper­
ated by th e G lenn L. M artin Co., of
B altim ore, Md.
H ere will be th e
cradle of M artin ’s deadly B-26 m edium
bom ber—th e w orld’s fastest. A bout
3,000 w ere em ployed on construction
and w hen operations s ta rt this spring,
p lan t personnel is expected to build
up rapidly, h ittin g 8,000 w ith in a year.
F o rty per cent of th e p arts w ill be
m ade here, th e balance being shipped
in. A new four-lane highw ay from
Om aha to F o rt Crook has ju st been
opened. H om e building is boom ing—
300 u n its already com pleted in one
project, a half-dozen m ore sm aller
projects u n d er way. Schools, espe­

3. “ F a s t as a b u lle t” is a conservative description of the
B-26, soon to s ta rt rolling from the assem bly line a t the
M artin bom ber p lan t.

cially on the South Side, are expected
to feel a m arked increase w ith the
opening of the p lan t and South H igh
w ill be enlarged w ith a $385,000 addi­
tion.
T raining w o rkers for the p lan t has
public and p riv ate in stitu tio n s on a
24-hour schedule. And w ith the con­
stru ctio n of th e $30,000,000 bom b­
loading p lan t 35 m iles w est of Omaha,
an o th er jum p in activity w ill be felt.
Om aha has pledged herself to “ALL
OUT” effort in th is crisis. P roduc­
tion is th e w atchw ord, as Omaha
drives ahead to c arry h e r share of
th e w ar program . I t ’s “ALL OUT”
and—“THUMBS UP!” in Omaha!.—
TH E END.

A bsent-m inded b an k er (going around
in a revolving door): “Bless me! I
can ’t rem em ber w h eth er I w as going
in or com ing out.”

4. O m aha’s re ta il and wholesale houses, its in d u strial
p lan ts and facto ries are hum m ing w ith a c tiv ity these
days, as th e C apital City of the M id-W est prepares for
a business boom.

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 19^2

14

N e w s
OF

THE

V ie w s

a n d
B A N K IN G

W ORLD

By Clifford DePuy

Along the Atlantic Coast
W . J. P ickerin g, p resid en t of the
A llen W ales A dding M achine C orpora­
tion of New York, and Mrs. P ickerin g
w ere m ost courteous to us w hile we
w ere in th e E ast. J u s t a few of th e
delightful occasions included d in n er at
th e Copacabana, a v ery b eau tifu l d in ­
n er p a rty a t th e R ainbow Room , and
a Sunday “B racer” B reak fast at The
M adison. As a charm in g h o st and
hostess, Mr. and Mrs. P ick erin g are
p ar excellence.
D aniel F. O’Meara, a ssista n t vice
p resid en t of th e Public N ational B ank
and T ru st Com pany, N ew York, took
us th ro u g h th e ir new location a t 37
B road S treet, recently.
In th e m ain lobby, th e m u rals
aro u n d th e w alls tell th e h isto ry of
com m erce in th e shipping in d u stry
since th e days of B eif E ricson.
The p resen t location gives th e b ank
an increase of 60 p er cent over th e ir
previous space.
The to tal resources of th e b a n k are
now over 200 m illion dollars an d th ey
have grow n v ery su b stan tially in th e
last n u m b er of years.
The p resid en t of th e b ank is E. Ches­
ter G ersten, th e cashier is M orris
Parker, and R oger Topp, vice p resi­
dent, is actively in terested in th e cor­
respo n d en t division.
W illiam Rabe, vice p resid en t of th e
M anufactu rers T ru st Com pany of New
York, didn’t tell us this, b u t we have
it upon good a u th o rity th a t his com ­
pany is now offering personalized
safety deposit boxes to clients in nine
tasty shades, ran g in g from pastel blue
to deep m aroon. T his m ay be w h at
you call p u ttin g g lam our into th e
safety deposit business. The b an k has
found th e plan v ery succesful, an d it
has m aterially increased th e re n ta l of
th eir boxes.

If you hap p en to drop in to th e
Savoy-Plaza on F ifth A venue for cock­

tails on S atu rd ay afternoon, you will
find th a t th e m inim um check is “$2.00
p er person d u rin g th e cocktail hour,
4:30 to 7:30 p. m .” And, if you th in k
th a t keeps people aw ay, ju s t tr y to
find a v acan t table.
Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1942

O. H ow ard W olfe, vice p resid en t and
cashier of th e P hiladelphia N ational
B ank, asked us to enjoy a delightful
luncheon a t his bank, including O yster
Bisque and L obster T herm idor, along
w ith o th er delicacies.
The bank, w hich w as established in
1803, now has deposits of over $715,000,000. In th e historical room of th e
bank, we saw Steph en Girard’s orig­
inal old m oney chest, w hich he used
in 1816, and w hich had a “fak e” lock
on it to fool would-be robbers.
The tra n s it d ep artm en t of th e b ank
h andles m ore item s th a n any o th er
b an k in the U nited States, except th e
F ed eral R eserve B anks, and th e ir peak
day w as on October 13th, w hen th ey
h andled 435,000 item s, w hich w as an
all tim e high. T his d ep artm en t of
th e b an k is a 24-hour service, and
nev er closes.
The total n um ber of em ployes in

The follow ing sign is placed out in
fro n t of one of th e b etter know n n ight
spots on 53rd S treet in New York:
“Open at 4:00 p. m. You’d be sleep in g,
too, if you had been up all night and
gone to bed at 8:00 a. m., and y o u r
fee t w ere tired.”
Ornaldo V illablanca of Santiago,
Chile, invited us to have lunch w ith
him on th e A concagua, a boat w hich
was sailing about five o’clock for V al­
paraiso, Chile.
It w as a v ery delightful luncheon,
w hich sta rte d about 1:30 p. m. and
finished about 4:00 p. m., w ith ev ery
delicacy possible, to g eth er w ith th e
app ro p riate
“liquid
re fre sh m e n ts”
w ith each course.
Am ong those p resen t a t th e lu n ch ­
eon w ere Mr. and Mrs. W . J. P ick erin g
and th e ir b eautiful daughter, M iss
A ureatha P ickerin g, and R am on R ios,
p resid en t of th e R am on Rios Com­
pany, 120 W all Street, N ew York, and
his wife.
I t is about 5,000 m iles from N ew
York to V alparaiso, and it w ould take
the boat 20 days to reach its destin a­
tion.
The population of Chile is about five
and one-half m illion people, and th e
capital, w hich is Santiago, has a pop­
ulation of 1,250,000, and V alparaiso a
population of 400,000.
In cases w here th e p rio rities are
h in dering the m erch an ts in S outh

The S tatu e of L ib erty , in New Y ork H arbor, the significance of w hich we prize
now more th an ever.

th e b ank is about 950, and th ere are
only six people in th e b ank w ho have
been th ere longer th a n Mr. W olfe,
w ho has been w ith th e in stitu tio n for
42 years. T his is h a rd to believe, be­
cause H ow ard looks like he is only 35
y ears of age and he is straig h t, slen­
der, stream lined an d good-looking.

A m erica from buying new ly m an u ­
factured articles here, th ey are en­
deavoring to buy second hand m achin­
ery w hich can be sold and delivered
at once.
Senator Clyde E. H erring, w ith
w hom we had d inner w hile in W ash-

15
ington, has been receiving m an y fav o r­
able com m ents on his speech “U n ity
for D efen se’’, w hich he gave a few
w eeks before th e Jap invasion. W hile
labor legislation has been sidetracked
for th e m om ent, it should be th e first
o rd er of business in th e n e a r fu tu re,
and if th is co u n try is to m ake an y real
progress, we have to have labor legis­
lation w hich is definite an d positive in
its term s an d n o t leave all of our ques­
tions to m ediation boards, w h ich m ay
o r m ay not have th e rig h t answ ers.
If you th in k all of th e real n ig h t life
cen ters aro u n d T im es Square in N ew
York, you need to p u t in only a little
tim e in W ash ington , D. C., to find out
th a t real com petition exists in th is
capital city of th e U nited States.
As one w rite r describes it:
“Capital n ig h t life b ulges from
w hite-tie C ongressional h angou ts into
civ il service side streets and clear into
the su rroun din g cou n trysid e of M ary­
land and V irginia, w here neon sign s
ad vertise juk e b oxes patronized by
horny-handed d efen se w orkers, sailors
and soldiers.
“A m on g the d ressiest places are the
Shoreham ’s d in in g room , the H otel
C arleton’s Cosm os Room and the M ay­
flow er’s cocktail lounge. P olitical b ig­
w igs and stuffed sh irts freq u en t the
Shoreham , esp ecially on Saturday
nights, to loosen up w ith heads of im ­
portant govern m en tal agencies.
“In the M ayflower, w h ere B ritish
purchase m ission ers h ave taken over
the m en ’s bar to such an ex ten t that
you rarely hear a flat ‘a’ excep t from
a w aiter, th e cocktail lou nge is a
m elange of diplom ats, lob byists, har­
assed b u sin essm en and th e ir w iv es
and girl friends.
“Som e cap italists ack n ow led ge that
it has th e reputation of b ein g the
‘hardest d rin king city in th e U nited
S tates’.”

W hile in W ashington, w e h ad a v ery
nice v isit w ith P aul L. H ardesty, m a n ­
ag er of th e In su ran ce D ep artm en t of
the U nited States C ham ber of Com­
m erce, w ho, in tu rn , gave us th e op­
p o rtu n ity of m eeting John W. O’L eary,
ch airm an of th e executive com m ittee,
John M. R edpath, m an ag er of th e R e­
search D ep artm en t and G eneral Coun­
sel, M erle Thorpe, editor of N atio n ’s
B usiness, an d L aurence F. H u rley,
business m an ag er of N a tio n ’s B u si­
ness, and B en H. Lam be, m an ag er of
th e pu b licity departm en t.
P aul used to be associated w ith th e
U nion T ru st Com pany of Chicago be­
fore it m erged w ith th e F irs t N ational
Bank.
R oland C. Irvin e, vice p resid en t of
th e Chase N ational Bank, w as kind

enough to include us in a luncheon
in v itatio n a t his b an k w hile w e w ere
in New York, and also as his guests
w ere R oland B enjam in, tre a su re r of
th e F id elity and D eposit Com pany of
M aryland, and F ran k P. S ym s, vice
p resid en t of th e N orthwestern B anker
in New York. T he luncheon w as v ery
delightful, and w e enjoyed ourselves
im m ensely, b u t on leaving th e d in­
ing room, we stopped in th e w ashroom
a m om ent, and rig h t on th e ledge
above th e w ashbow l w as a v ery large
bottle labeled “B icarbonate of Soda.”
W e told R oland th a t evidently th ey
d id n’t have as high a reg ard for th e ir
chef’s cooking as w e did.

w hich w ill be know n as “The B lessed
E v e n t R oom .”
D onald K. Clifford, a cousin of ours,
is vice p resid en t of P edlar and R yan
A dvertising Agency, 250 P a rk A venue,
New York, and am ong o th er accounts
w hich th ey handle is th e one for
“L ady E sth e r,” on w hich th ey spend
one and one q u a rte r m illion dollars a
year in advertising. Don took us to
the H arv ard Club for lunch, and we
w ere rem inded again th a t th e cups
and saucers at th is w ell know n club
are the largest found anyw here.
H enry P. Turnbull, vice presid en t of

L ow er New Y ork City, th e g re a te st skyscraper section in the world.

W hile w e w ere in Boston w e saw
th e opening of th e Olson and Johnson
new show “Sons O’ F u n .”
T his is sim ply a deluxe edition of
“H ellzapoppin.” T he success of th e
play comes from th e large am o u n t
of audience participation, an d you
w ouldn’t believe th a t people w ho paid
to see a show w ould co n tribute as
m uch to th e show as th ey do. F or
exam ple, in one act th ey asked for
th ree m en and th ree w om en to come
up on th e stage from th e audience, and
th e n th e w om an w ho took off the
m a n ’s u n d e rsh irt first, received a
prize.
W hen th e show opened in New
York, it w as an im m ediate hit, an d all
because it gives relief from th e w o r­
ries and cares of a w orld at w ar.
Sherm an B illin g sley , w ho ow ns the
Stork Club, gave it th a t nam e because

am ong th e original group of stock­
holders w as a w om an who, a t th e first
m eeting, w as expecting to become a
m o th er in a sh o rt tim e, so th ey nam ed
th e club in honor of her. J u s t now
th e y are opening up a new room,

th e C entral H anover B ank and T ru st
Com pany of New York, has tw o fire­
places in his office suite—one is in his
p riv ate office and th e o ther is in his
reception room —and he said th a t th e
idea w as so th a t all of th e ir friends and
custom ers w ould alw ays be assured of
a w arm welcom e w h enever th ey cam e
in. As far as we are concerned, th ere
has alw ays been a m ost w arm and
cordial g reeting from th is w ell-know n
and popular banker.
Joe R ogers, w ho is th e p ro p rieto r of
“R oger’s Corner” a t E ig h th A venue

and F iftie th S treet in New York, took
over th e old Jack D em psey re sta u ra n t,
and has rem odeled it from top to b o t­
tom. The m ost uniqu e place about the
re sta u ra n t is th e R oger’s A viary, w hich
is set into th e re a r w all of th e Rondevoo Room, and is a gigantic glass
bird cage, teem ing w ith rare, exotic
song birds from every far aw ay corner
of th e e a rth —a p ageant of w inged
beauty. A nd th e y ’re actually w ired
for sound, so th a t you can h ear th e ir
lovely notes am plified over th e loud
speaker.
(T u rn to page 30, please)
Northwestern Banker


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

January 1942

16

A forecast for 1942
A Look Into the Future A s It Depends Upon Basic
Business Conditions

ASIC business conditions and a
forecast or pre-view of 1942 is an
exceedingly large topic for dis­
cussion by an y individual w hose p re ­
ten tio n s are m odest and w hose sense
of resp o n sib ility for his public u tte r ­
ances is a t all developed. E n te rin g
into th e realm of prophecy is a doubly
hazardous u n d e rta k in g a t a tim e such
as th e p re se n t w hen all fam iliar sign­
posts seem to be obliterated.
The im portance of u n d erstan d in g
c u rre n t econom ic phenom ena and see­
ing some distance ahead grow s in di­
rect ratio to th e a p p a re n t confusion
of th e p re se n t m om ent. Most of us
w ould be w ell advised to lim it our
conjectures as to th e fu tu re to a re la ­
tively sh o rt tim e and leave th e far
d ista n t fu tu re painted in only vague
outlines and broad generalizations.
F u rth e rm o re , we m u st g u ard against
fixing a rigid p a tte rn of th e fu tu re in
our m inds; ra th e r, we m u st be p re ­
p ared to ad ju st o u r view s freq u en tly
as th e p re se n tly u n k n o w n factors be­
come know n. T hus we m ay have, and
we m u st have for practical purposes,
a flexible y et w orkable u n d erstan d in g
of basic business conditions and th e ir
im plications as to th e im m ediate fu ­
ture.
W hat, then, is a flexible and w o rk ­
able view of those chief c h a ra c te r­
istics u n d erly in g our natio n al econ­
om y a t th is tim e? W h at are th e im pli­
cations to be d raw n from such a pic­
tu re of th e p re se n t inso far as th e im ­
m ediate fu tu re is concerned?
L et us first tre a t th ese questions
generally w ith a view to seeing th e
background or stage upon w hich th e
c u rre n t scene is set. Then, w ith th is
background in m ind, let us exam ine
m ore specifically th e basic conditions
now u n d erly in g business and the di­
rection we ap p ear to be taking.
The c u rre n t scene m ig h t be best de­
scribed by giving it a nam e, and the
nam e I should choose is “W ar E con­
om y—1941 V ersion.” I say “1941 V er­
sion ” advisedly because we m ust
avoid th e e rro r of draw in g close p a r­
allels betw een th e p re se n t w a r and
th a t of th e first W orld W ar. Since
th a t w ar th e re have developed th e
conceptions of “total defense” and

B

Northwestern Banker

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

January 19^2

By K. K. Du Vail
Vice President
C ity National Bank & Trust Co.
Chicago

K. K. D U V A L L

“all-out” effort w hich is to say, in the
language of a poker game, “playing
for table stakes.” P u t a n o th er way,
it is a gam e in w hich each player says
in advance “w e’ll m eet th a t bet and
raise it.” Today’s w ar is one of m a­
chines and productive capacity, and
th e appetite of the m odern m ilitary
estab lishm ent sim ply surpasses an y ­
th in g in m an ’s recorded history. W hile
you m ay say every w ar and, cer­
tain ly the first W orld W ar looked
every bit as serious at its outset, and
now looks less om inous because of
th e passage of tim e, let me rem ind you
th a t after b u t little m ore th a n one
y ear of serious effort we have already
ap p ro p riated over 60 billions of dol­
lars for defense as com pared to an
estim ated over-all cost of th e first
W orld W ar of approxim ately 80 bil­
lions of dollars. E stim ates of th e costs
and effort ahead of us have recently
ru n as high as 30 billion dollars each
y e a r and th e use of 40 per cent to 45

per cent of all our gainfully em ployed
labor in w ar production alone. I do
not vouch for th e accuracy of such
astronom ical conceptions b u t repeat
them for th e sake of gaining p e r­
spective. If these figures—if the effort
th ey im ply—is w rong by 50 per cent
—it is still quite easy for th e m ost
am ateu rish econom ist to see w hy w ar
econom y p resen ts a p icture alm ost
totally different from peace-time econ­
omy.
Before discussing th e im plications
of “total w a r”, we m ay pause to specu­
late briefly on th e prospect of the w ar
ending in the im m ediate fu tu re, say,
th e n ex t six m onths to a year. The
possibilities looked at in a broad gen­
eral w ay w ould seem to be covered by
th ree suppositions, nam ely—
(1) The Axis pow ers w ill overcom e
all enem ies by force of arm s.
(2) G reat B ritain and h er allies w ill
overcom e th e Axis pow ers by
force of arm s.
(3) N either side w ill w in by a
knock-out blow and peace w ill
be achieved by negotiation.
If th e Axis group w ins by arm ed
force, it seem s certain from the pres­
en t tem p er of the A m erican people,
th a t our arm am en t program will be
carried forw ard w ith undim inished
vigor. If a negotiated peace is b ro u g h t
about, the practical resu lt from our
stan dpoint will be an arm ed truce,
du rin g th e course of w hich we w ould
not let up in our efforts to become
stro n g er m ilitarily th an any potential
enem y. If we should w in by a decisive
m ilitary victory then, and th en only,
should we anticipate a deviation from
th e w ar econom y I have previously
m entioned.
Therefore, th e “W ar Econom y—1941
V ersion” is here to stay aw hile and it
seem s to me th e p a tte rn is only be­
ginning to evolve. It is im p o rtan t to
keep th is p icture of evolution before
us for no one in W ashington, London,
or B erlin, it seem s to me, has a sane
conception of e ith er th e lim its or the
precise direction of the u n d erlying
forces at w ork. T here are individuals,
and n o t a few I suspect, w ho have
th o u g h t on ahead for several moves,
(T u rn to page 65, please)

17

STATEMENT
O F

CONDITION
D ecem ber 31, 1941
RESOURCES
L o a n s and D is c o u n t s ......................................................................................................... $20,967,832.43
O v e r d r a fts ............................................................................................................................
742.68
U . S. G o v ern m en t O b lig a t io n s .................................................................................... 14,184,125.02
S ta te and M u n ic ip a l B o n d s ......................................................................................... 5,272,633.02
O th er B o n d s and I n v e s t m e n t s ...................................................................................
3,127,892.02
B a n k in g H o u s e ....................................................................................................................
699,000.00
F u rn itu re and F i x t u r e s ....................................................................................................
1.00
I n te r e s t E a rn ed b u t n ot C o lle c t e d ...........................................................................
175,654.81
O th er A s s e t s ......................................................................................................................
26,683.05
C ash on H an d and D u e from F e d e r a l R e se r v e B an k and
O th er C o rresp o n d en t B a n k s . . . . .......................................................................... 19,616,838.25
$64,071,402.28

LIA B ILITIES
C om m on S to ck ..................................................................................................................$
S u rp lu s ....................................................................................................................................
U n d iv id e d P ro fits ...............................................................................................................
R e s e r v e for C o n t in g e n c ie s ............................................................................................
R e s e r v e for T a x e s , I n te r e s t, E t c .............................................................................
R e se r v e for D iv id e n d s D e c la r e d and U n p a id ..................................................
I n te r e s t C o lle c te d B u t N o t E a r n e d .......................................................................
S p e c ia l
D e p o s it s .............................................................................................................
D e p o s it s ..................................................................................................................................

2,000,000.00
2,000,000.00
379,729.28
215,234.03
108,316.05
30,000.00
4,898.44
2,440,272.21
56,892,952.27

$64,071,402.28

Mem ber
Federal Deposit Insurance Co rp oration


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

Northwestern Banker

January 1942

A re Persons In Military Service
Liable for Accidents?
In N orth Dakota, g enerally speak ­
ing, actions on p rom issory notes are
outlaw ed a fte r six y ears u n d e r th e
lim itatio n statu te. I t is fu rth e r th e
law in th a t state, how ever, th a t if
th ere is an “acknow ledgm ent of th e
deb t” w ith in such period or later, th e
six-year period ru n s from th e tim e of
such acknow ledgm ent. W hen a re ­
new al note is given a fte r th e six-year
period has ru n , does th e lim itation
sta tu te outlaw ing action on th e orig­
inal note a fte r six y ears cease to be
effective?
Yes. The execu tion of a ren ew al
note is an ack n ow led gm ent of a debt
w ith in th e m ean ing of the lim itation
statu te so as to take an action on a
note out of the operation of the sixyear lim itation statu te, w here such
action is brought w ith in six years of
the tim e the renew al note is due, even
thou gh the original note w as given
m any years before.
The property of a N o rth D akota

b an k e r in a m u n icip ality in th a t state
w as dam aged as a re su lt of an over­
flow from th e sew ers of th e m unici­
p ality th a t w as caused from e x tra o rd i­
n a ry rain s and floods. W as th e m u ­
nicipal co rporation liable for such
damage?
No. A m unicipal corporation is not
liable for dam age caused by an OA7erA oaat of its sew ers from extraordinary
rains or floods, according to a recent
N orth D akota Suprem e Court decision.
A N ebraska banker w as th e ad m in ­

istra to r of, and succeeded to, a p a rt
in te re st in his fa th e r’s estate, w hich,
am ong vario u s things, consisted of a
farm in th a t state. In his ow n rig h t
and as an individual, he contracted
for th e in stallatio n of an irrig atio n
pum p arid w ell on th e farm w ith o u t
th e know ledge of th e o th er heirs. In
his dealings on th e m a tte r he did not
disclose to anyone th a t he w as th e
ad m in istra to r of th e estate. W as he
liable to th e seller for th e full co n tract
price and w as th e seller en titled to a
m echanic’s lien on th e b a n k e r’s in te r­
est in th e realty?
Y es. T h e in te r e s t o f a p a r t OAvner
o f rea l e sta te m a y b e su b je c te d to a
m e c h a n ic ’s lie n fo r im p r o v e m e n ts
th ereo n m ad e at h is in s ta n c e . A lso ,

Northwestern Banker


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

January Í9J2

These and Other Timely Legal
Questions Are Answered
By the

LEGAL DEPARTMENT

in a s m u c h a s th e b a n k e r did n o t d is­
c lo s e h is p o sitio n a s a d m in istr a to r , h e
Aias lia b le in d iv id u a lly fo r su m s d u e
on th e p u m p a n d th e Avell.
A d eed to certain M innesota real
estate provided unqualifyingly th a t a
certain w ell w ould control th e loca­
tion of one of th e bou n d ary lines. A
dispute arose as to th e location of th a t
line. Did such line pass th ro u g h the
cen ter of th e well?
Y es. W h e r e a d eed c o n ta in s a r e fe r ­
e n c e to a Avell a s th e lo c a tio n o f a
b o u n d a r y , th e b o u n d a r y lin e aauI I be
h e ld to p a ss th r o u g h th e c e n te r o f th e
AA7ell. T o p u t th e m a tte r in a n o th e r
AAra y , AArh e r e a d eed c o n ta in s a n u n ­
q u a lified r e fe r e n c e to a m o n u m e n t as
to th e lo c a tio n o f a b o u n d a r y , th e lin e
th e r e o f p a ss e s th r o u g h th e c e n te r o f
th e m o n u m e n t.
A tr u s t c o m p a n y w as appointed

tru ste e in a will. As such it received,
a t th e death of th e testato r, certain
securities th a t w ere n ot legal in v est­
m ents for tru sts. T he tru s t in stru m e n t
did not authorize th e tru ste e to retain
th ese securities in th e tru s t and th ere
w ere no sta tu te s p e rm ittin g such re ­
tention. W as it th e d u ty of th e tru s ­
tee to dispose of them w ith in a reason­
able tim e?
Y es. In th e a b se n c e o f a sta tu te
a u th o r iz in g r e te n tio n , o r a u th o r iz a tio n
in th e in s tr u m e n t c r e a tin g th e tr u st,
it is th e d u ty o f a tr u s te e r e c e iv in g u n ­
a u th o r iz e d s e c u r itie s a s a p a rt o f a
tr u s t e sta te , to d isp o se o f th e m Avithin
a r e a so n a b le tim e .

A banker held certain state and
county tax sale certificates on certain
p ro p e rty in a F lorida m unicipality. As
ow ner and holder of th e certificates a
lien on th e p ro p erty in his favor ex­
isted. T he m unicipal taxes w ere not
paid w hen th ey fell due and th e m u ­
nicip ality foreclosed on th e p ro p erty
and bought it. The b an k er w as not

m ade a p a rty to the foreclosure. W as
his lien affected thereby?
No. If, in proceedings to foreclose
tax liens, som e other tax lien s are not
included in the proceedings, the fore­
closure decree w ill not affect th o se
not inculded. H ere, the m un icipality,
b u yin g in the property on the fore­
closure of a lien for m un icipal taxes,
took the property su bject to th e lien s
ex istin g again st it for state and county
taxes.
A N ebraska banker w as driving

along th e highw ay in his autom obile
in th a t state a t night. W hile doing
th is he saw som ething abnorm al on
th e highw ay b u t took no precautions
by w ay of reducing speed, or o th e r­
wise, to g uard against an accident. An
accident occurred and he sued for
dam ages. Could he recover?
No. A m o to r ist w h o s e e s s o m e th in g
a b n o rm a l on a h ig h w a y a t n ig h t but
ta k e s n o precautions b y AATa y o f re­
d u c in g sp eed , or otherAvise, is g u ilty ,
a s a m atter of I oaa7, o f n e g lig e n c e ,
Avhich b a rs h is reeoA ery fo r d am a g e
contributed to b y h is la ck o f care.
In W isconsin th e “clear m ark et
valu e” of a decedent’s p ro p erty is, by
statu te, m ade th e basis for d eterm in ­
ing the inh eritan ce tax. W here a de­
cedent’s p ro p erty is sold u n d er such
circum stances th a t th e fair m ark et
value is not obtained, is such sale price
controlling in fixing th e value of th e
p ro p erty for inheritan ce tax purposes?
N o. W h e r e th e sa le o f a d e c e d e n t’s
p r o p e r ty is m ad e u n d e r c ir c u m sta n c e s
Avhereby th e fa ir m a r k et v a lu e is n o t
o b ta in e d , th e sa le p rice r e c e i w d is n o t
c o n tr o llin g an d d o e s n o t c o n c lu s iv e ly
fix th e p r o p e r ty ’s “c le a r m a rk et A^alue”
w h ic h , u n d e r th e sta tu te , is m ad e th e
b a sis fo r d e te r m in in g th e in h e r ita n c e
ta x d u e a n d p a y a b le th e r e o n .

An arm y m an, in his
in ju red an em ployee of a
o rd in ary circum stances,
liable for having caused

line of duty,
bank. U nder
w ould he be
such injury?

No. P erso n s in th e m ilita r y and
naA al se iw ic e are p ro te c ted from lia b il­
ity fo r in ju ries to civ ilia n s if at th e
tim e th e y AA’ere a c tin g w ith in th e lin e
o f th eir d u ty , u n less such a c ts are

(T u rn to page 31, please)

G omJjÍÁ enee

HE fo u n d a tio n o f nearly all business.
W e like to think this is one o f the main reasons
f o r so many banks com ing to us f o r new e q uip m e nt
when required and also fo r th e ir rem odeling and
modernizing o f old fixtures.
O th e r reasons u n d o u b te d ly are the fa c t th a t
F is h e r C o m p a n y h a v e had over 70 years
experience planning and e quipping banks all over
the northwest.
O u r experienced men will be glad to call on
you and, w ith o u t o b ligation, make flo o r plans and
p ra c tic a l suggestions fo r modernizing your present
quarters.
Now, when the larger construction jobs are
slowing up, is an o p p o rtu n e tim e to consider and
co m p le te the rem odeling o f your bank.
W r it e us when to call.

Fis

h e r

Thank you.

C

o m

p a n y

E S T A D LI S H E D

18 7 0

Charles City, Iowa
BANK


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

FI XTURE

S P E C I AL I S T S

Northwestern Banker

January 194-2

20

New

Buildings and Remodeling

By Banks of the M id d le W est
H E R E have been m an y new b ank
buildings co n stru cted in th e middlew est d u rin g th e p ast few
m onths, a n u m b er of th em ju s t re ­
cently com pleted, w hile n u m erous
o ther b an k s have installed new and
m odern fixtures and redecorated
throu g h o u t. W ith the th o u g h t th a t all
th is new co n stru ctio n and in te rio r im ­
prov em en t w ould be in te re stin g to
o t h e r in stitu tio n s c o n t e m p l a t i n g
changes, we have asked an officer in
each of th ese b anks to tell us about
new in stallatio n s in his bank. In some
cases p ictu res w ere available, and
some of th ese pictures, to g eth er w ith
o th er inform ation, is published on this
and th e opposite page. More pictures
and descriptive com m ent w ill appear
in com ing issues.

T

South Dakota, tells th a t th e F ish er

Com pany, of C harles City, Iowa, is
h an d ling th e in stallatio n of m odern
fixtures in his in stitution. The bank
lobby will also have a new m oultile
floor, Mr. B row n says.
L. H. D avis, cashier, H am pton State
Bank, H am pton, Towa:

“The original fixtures w ere installed
in 1917 by th e F ish e r Com pany of
C harles City, consisting of m arble fac­
ings and th e u sual heavy grill w ork
above.
“W e got p re tty tired of try in g to
converse w ith our custom ers w ith o u t
seeing them eye to eye, and passing
m aterials u n d er th e w ickets through
th e sm all space provided. F irs t we
rem oved five of the center bars a t each
w indow and we liked th e change so
R.
R. Cocklin, vice president, Wau- w ell th a t we decided to rem ove all of
n ita F a ils Bank, W aunita, Nebraska:
th e g rill w ork.
“C onstruction of our new building
“The F ish er Com pany sent th e ir
w as begun in 1939, and it w as occupied engineer and we contracted a com plete
in 1941.
rem odeling job. A round the priv ate
“T his b uilding has celotex ceiling, offices th e high fixtures w ere cut down
cem ent floor covered w ith ru b b e r tile, to about 5 feet 8 inches w ith th e posts
indirect lighting, forced hot a ir heat, capped and new slab oak doors in ­
w hich can be converted into air-condi­ stalled. B etw een each w indow at the
tioning. The co u n ters are th e new
co u n ter an oak top w as installed w ith
style, low type, and all co u n ters and a long fluorescent light u n d ern eath .
new eq uipm ent are steel w ith alu m ­ E ach end has a sm all glass to allow
inum trim . A new n est of safety de­ lig h t to reach th e counter plate and
posit boxes w as also in stalled .”
a t th e sam e tim e affords protection
A.
H. B row n, president of the Citi­ from sneak thieves. W e like th e coun­
te r fluorescent lighting very m uch.”
zens Bank of M obridge, M obridge,

The new building of the W au n eta F alls B ank, W auneta,
N ebraska, occupied last year.

Northwestern Banker


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

January 19J2

C.
C. Traxler, ca sh ier of the F irst
N ational Bank, Le Center, M innesota:

“We have ju st com pleted rem odeling
the in terio r of our bank, enlarging th e
floor space to about double th e form er
size. W e have installed new low-type
fixtures of w alnut, th e floors are new,
and lighting is of th e latest type. W hile
we w ere a t it we m ade th e job as com ­
plete as possible.”
Joh nn ie Rake, cashier of the State
S avings Bank, Rake, Iowa:

“W ith the w ork being done by the
F ish er Company, we com pletely re ­
m odeled th e in terio r of our banking
room, as w ell as re arran g in g th e posi­
tion of th e counters to give b e tte r light
and considerable m ore w orking space.
New m oultile flooring w as laid over
th e en tire floor space, including th e
custom ers vault. C ounters are th e
low-type, constructed of q u a rte r saw ed
w hite oak. T he m ain counter com ­
prises th ree w ickets, in addition to
frontage for officers space and one
p riv ate room in front. The lobby and
priv ate office are w ainscoted to m atch
th e o th er wood trim .” Mr. Rake says
fu rth e r th a t he m ay have some pic­
tu res of the new installation soon, and
w ill send them to us.
The C itizens State Bank, Iow a F alls,
Iow a, installed a F rig id aire cooling

u n it last sum m er w hich adds greatly
to the com fort of patro n s and perso n ­
nel, and according to E. H. K lisart,

The w orking space in th e W auneta F alls B ank.
ters are steel w ith alum inum trim .

All coun­

21
cashier, th e u n it is also used to clean
th e a ir in th e w in te r m onths.
R aym ond G. M iller, vice president
of th e Capital City State Bank, D es
Moines:

“Some tim e ago, th e C apital City
S tate B ank acquired th e rem ain d er of
th e second floor of our building, giving
us additional b an k in g space of ap p ro x i­
m ately 40 p er cent.
“W e finished our room by placing
celotex on th e ceilings, com position
tile floor, in d irect lighting, Venetian
blinds, redecorating, and th e old type
m etal g rill cages w ere replaced by new
low-type counters. T he im provem ent
has been p a rtic u la rly pleasing to our
depositors as th e atm o sp h ere is m uch
m ore frien d ly .”

Executive Council
T he a n n u al sp rin g m eeting of the
executive council of th e A m erican
B an k ers A ssociation w ill be held a t
T he H om estead a t H ot Springs, V ir­
ginia, A pril 19-22, 1942, it is announced
by H e n ry W. K oeneke, p resid en t of
the association. Mr. K oeneke is p resi­
den t of th e S ecurity B ank of Ponca
City at Ponca City, Oklahom a.
T he executive council is th e gov ern ­
ing body of the association, consisting
of b a n k ers chosen by th e b a n k e rs as­
sociations of th e 48 states and th e Dis­
tric t of Columbia.

Shift In Examiners
M ajor V ance L. Sailor, on m ilitary
leave as su p erv isin g exam in er of th e
six th F ed eral D eposit In su ran ce Cor­
p o ratio n d istrict, w ith h e a d q u a rte rs at
St. Louis, has been appointed chief of
th e D ivision of E x am in atio n of the
corporation, it is announced. M ajor
Sailor w ill suceced Jo h n G. Nichols,
fo rm er chief of th e division, w ho died
N ovem ber 10th. The St. Louis post
will be ta k e n over by Neil G. Greensides, since N ovem ber, 1933, a ssista n t
su p erv isin g ex am in er of th e seventh
FD IC d istrict, w ith h e a d q u a rte rs a t
M adison, W isconsin.
Now serv in g on th e h ead q u arters
staff of th e S ixth D ivision a t F o rt
L eonard Wood, M issouri, M ajor Sailor
w ill assum e his new FD IC duties upon
his release from m ilitary service.
TOP— View in the lobby of the Hamp­
ton State Bank, H am pton, Iowa,
show ing the new counter in stallatio n .
C EN T ER — B ehind th e counter in the
Hampton State Bank.
N ote the
fluorescent lig h t tubes lig h tin g the
counter w ork space.
BOTTOM-—A view in th e lobby of the
Capital C ity State Bank, Des Moines.
N ot long ago th is b an k increased its
lobby space by more th an 40 per cent.

Northwestern Banker

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

January 19'/2

22

Personnel
Policy

—

—

Public Education

—

Productive Cooperation

—

The 4 P's of Public Relations
N E of th e post-depression ben e­
fits to b an k in g is its recognition
of th e public’s new ly recovered
confidence in b an k s and its efforts to
prom ote re te n tio n of th a t confidence
th ro u g h m u tu al u n d e rsta n d in g and
good will.
The need for active consideration of
the public relatio n s function of b a n k ­
ing has come as th e re su lt of ban k in g
tren d s of th e p ast several decades
w hich reached th e ir clim ax in th e
“bank in g h oliday” of 1933. T his col­
lapse of th e A m erican b an k in g system
resulted from lack of public confidence
accelerated by th o usan d s of b an k fail­
ures, and ended in a w ave of public
h y ste ria w hich req u ired d rastic n a ­
tional action.
M any co n trib u tin g factors m ay be
traced such as th e b an k c h a rte rin g
policies of public au th o rities resu ltin g
in an excessive n u m b er of banks, ad­
verse econom ic conditions, incom pe­
tency of b an k m anagem ent, u n sound
banking policies and practices a g g ra­
vated by com petition in m any in ­
stances, and lack of a p ro p er u n d e r­
stand in g for th e necessity of public
education.
The b an k in g holiday and its afterm ath of political agitation focused a t­
ten tio n on th ese factors. In creasin g
governm ent p articip atio n in b an k lend­
ing functions has been coupled w ith
agitation for socialized banking. R ep­
resen tativ e b an k in g organizations have
recognized these u n favorable develop­
m ents and tre n d s and th ro u g h in te n si­
fied research and education have b u ilt
th e ir p rogram s and activities in an a t­
tem pt to m eet th e problem s involved.
R esearch and education have uncov­
ered m uch inform ation and experience
th a t has becom e valuable. More w ill
come as th e resu lts tak e shape.
Most of th e n a tio n ’s banks, in point
of num bers, fall into th e so-called
“co un try b a n k ” group. It is in this
group th a t th e g re a te st n u m b er of
failures have occurred in th e past.
Public opinion w as influenced by these
failures w hich w ere princip ally th e re ­
su lt of im proper a tte n tio n to certain
b ank in g fundam entals.

O

Northwestern Banker

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

January 19

By S. J. Kryzsko
Assistant Cashier and
Assistant Trust Officer
Winona Natio nal & Savings Bank
Winona, Minnesota

S. J. K R Y Z S K O

The co u n try b an k er cannot feel too
secure in his p resen t position. The
m easure of public confidence w hich he
now enjoys comes largely as th e resu lt
of deposit insurance, b ettered economic
conditions and a certain am o u n t of
g eneral public education.
The th re a t of socialized b anking and
increased governm ental com petition
still exists. Its increase or decrease
re sts largely on public opinion, and on
public confidence and good will. P u b ­
lic opinion is th e only voice th a t our
legislators and g overnm ent w ill heed.
T herefore, its im portance to th e b an k ­
ing business is of utm o st concern.
It is obvious th a t th e co u n try b a n k ­
e r’s p a rt in th e p roper direction of th is
public opinion is im portant. He m ust
realize th a t th is can be done effectively
only if each co u n try b an k er w ill “know

his com m unity” and m ake his b ank
and its program essential th erein.
A fu n dam ental th o u g h t to keep in
m ind in th is connection is th a t public
relations should alw ays be a tw o w ay
affair. W hile educating th e public to
a sym pathetic u n d erstan d in g of b an k ­
ing’s problem s, th e b an k er should be
equally cognizant of and receptive to
learn in g about th e problem s of his
com m unity for th e re in lies th e
stre n g th or w eakness of his program .
W ith th is th o u g h t in m ind each coun­
try b an k er should periodically tak e an
inv en to ry of his b a n k ’s public re la ­
tions perform ance. Such an ap praisal
offers th e m eans to check on his p ro ­
gram and keep it up to date as an
active b an king function.
A review and analysis of th e p ast
experience suggests certain factors as
having a fu n dam ental b earin g on th e
problem of developing and retain in g
public confidence, u n d erstanding, and
good will. These factors as a form ula
for a program p lanning appraisal m ay
be functionally appraised th ro u g h th e
four P ’s of public relations. If a b an k
can give a good account of itself in
each of these factors, th e n its public
relations program is w ell planned and
should produce effective results.
The four P ’s w hich form th e basic
fundam entals to be considered in p la n ­
ning and developing th e individual
co u n try b a n k ’s program are:
1.
2.
3.
4.

Personnel.
Policy.
Public education.
P roductive cooperation.

In p lanning th e detailed w orking
program , I w ould build it around these
essential factors. P ersonnel is of equal
im portance to policy b u t I w ould give
it first a tten tio n because w ith o u t good
personnel factors th e best outlined pol­
icy will fail. Policy w ill come before
public education because w ith o u t
sound b anking policy no a ttem p t a t
public education w ill w in public ap ­
proval.
By productive cooperation I m ean
th e practical everyday cooperation
w ith custom ers and w ith fellow bank-

<=StL S A F E R !

■ ■

C om m on pointed pins h a v e b e e n in u se sin ce old

nation's lea d in g banks are tod ay written on LaMonte

Rom an d a y s, but the S afety Pin w a s not thought

Safety Paper. N o greater testim ony could b e offered

of until 1849. » » Paper m aking is a s old a s pin m ak­

a s to its dollar-value in preventing fraud. » » Am er­

ing. Yet it rem ained for G eorge La M onte, in 1871,

ica 's outstanding b u sin ess corporations also specify

to invent S afety Paper for the protection of checks

La M onte S afety Paper. They v a lu e the protection

a g a in st fraudulent alteration an d forgery. » » Since

it offers . . . and the prestige it imparts. » » Ask your

the first check w a s written on La M onte Safety Paper,

lithographer or printer to sh ow y o u sam p les of La

u n cou n tab le billions of dollars h a v e b een protected

M onte Safety Papers and explain h ow y o u can h ave

a g a in st the hazard of check-raising through this

your ow n trade mark or individual d esig n incorpo­

m edium . » » C hecks of m ore than 75 per cent of the

rated in your check paper.


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

24
ers w hich w ill produce results. Such
cooperation is really the “su g ar and
spice” of th e b a n k e r’s public relatio n s
program . It sets off his p rogram lo­
cally and adds to b an k in g ’s program
nationally.
Cooperation by itself is not enough
for the m odern banker. S tanding alone
it too often becom es a sym bol of lip
service. To give it force, it m u st be
productive of th e resu lts w hich it seeks
to attain . T h at is w hy I choose p ro ­
ductive cooperation as th e flavoring
elem ent in th e public relatio n s p ro ­
gram .
The problem s of each com m unity,
of each section, and of each b an k w ill
v ary considerably.
To m eet these

vary in g conditions w ill necessitate a
different approach to th e problem of
p lanning the details of a program in
each case. Basically the problem s w ill
revolve around th e four P ’s of public
relatio ns w hich fu rn ish th e som ew hat
broad general program foundation ap­
plicable to all types of com m unities
served by co untry banks. To th is the
individual b an k er w ill need to add his
special com m unity considerations in
fo rm u lating th e w orking details of his
individual program .
All th e factors m ust be w ell balanced
in th e proportions req u ired for th e p a r­
ticu lar case. The w orking details
should th en be review ed and analyzed
in th e ir relation to th e recognized aim s

njov n
PRO SPERO U S nEW Y E A R
Let our trained field service m en h elp you
create m ore n e w b u sin ess for extra prem ium
incom e for your a g e n c y .
W estern M utual a g e n ts h a v e found they
can build m ore b u sin ess on n e w custom ers
a n d in crease c o v e r a g e w ith present clients on
EXTRA SERVICE our trained field m en supp ly.

of a co untry bank public relations p ro ­
gram w hich should have these objec­
tives in mind:
a. To build good will and dispel ig­
norance about th e functions of b a n k ­
ing.
b. To c o m b a t m isrep resen tatio n s
from hostile elem ents w orking for u n ­
favorable legislation against banks and
the A m erican system of banking.
c. To establish banks definitely as
necessary in stru m en ts of economic
progress for th e individual, for th e
com m unity, and for th e nation.
d. To stim u late cooperation am ong
banks for th e m u tu al b etterm en t of the
banking business and “sell” co u n try
ban k ers on the need for continuing
public relations activity.
e. To create and m ain tain a public
confidence and u n d erstan d in g of b a n k ­
ing w hich will enable banks to sell
th e ir services at a deserved profit.
This, then, is th e broad general foun­
dation on w hich th e detailed w orking
program m ust be bu ilt and developed.
The civic, social and economic prob­
lem s of th e m any com m unities in this
co u n try are so varied th a t no detailed
program here outlined w ill be practical
and effective in each case. R ath er does
it become incum bent upon each coun­
try b an k er to appraise public opinion
in his com m unity as a m eans of d eter­
m ining the tre n d to w hich the ex ten t
and n a tu re of his individual efforts
m u st be attuned.
W ith o u t th e su p p o rt of an en th u si­
astic, lo y a l in tern al organization
achieved th ro u g h full consideration
and u n d erstan d in g of th e value of
good em ploye relations, and w ith o u t a
background of sound banking policies,
th e basic m edia for public education,
publicity and ad v ertisin g will not ac­
com plish the desired results.

Personnel

In vestigate just how m uch extra a W estern
M utual contract b ack ed by extra feed service
can m ean to your prem ium incom e.

Western Mutual
Fire In suran ce Co.
9th an d G rand

D es M oines, Iow a

"Over a Third of a Century of Safety and Service With Savings”

N orthw estern B anker

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Federal Reserve Bank of St. Louis

January 19J2

The personnel factor is a m ost im ­
p o rta n t one in th e in tern al operations
of a bank. It is equally im p o rtan t in
the m aintenance of good public re p u ­
tation. It follows th en th a t good em ­
ploye relations are a prim e essential
to the developm ent of good public rela­
tions.
Continued care in th e selection of
the b a n k ’s personnel is th e first ele­
m ent to be considered. The ban k is
know n to the public th ro u g h its staff
m em bers, be th ey officers, tellers, book­
keepers, sten o g rap h ers or m essengers.
E ach of these should be chosen for his
position and fu tu re advancem ent w ith
full reg ard to his am bition, personality,
ability, appearance and attitude, his
tact an d diplom acy and his courtesy
and th o u g h tfu l understanding. T his is
(T u rn to page 70, please)

If Banks W ere O p en
at Night I C ould

Bank the Commission
A fte r the
N TRACING m y best resu lts, I have
found alm ost w ith o u t exception th a t
m y evening interview s, those in th e
presence of both m an and wife, are
m ost productive. W hen you have him
in his ow n hom e, u n d istu rb e d and
w ith his vice p resid en t in attendance,
an d th e re st of th e board m em bers in
bed, ladies and gentlem en, th a t’s w hen
you really can ride h erd and not spare
th e spurs.
The first in terv iew is
p u rely conversational, g ettin g ac­
q u ain ted w ith her, philosophizing,
b uilding prestige for m yself th ro u g h
le tte rs from p ro m in en t m en, a com pli­
m en t h ere and th e re and a definite
u n d e rsta n d in g th a t I am th e re for
ju s t one purpose, to id entify certain
inevitable problem s confro n tin g the
g re a te st fam ily corporation th a t ever
existed, Mr. and Mrs. P rospect.
I
th e n proceed to iden tify th e problem
in te rm s of m inim um incom e, guiding,
of course, th e en tire conversation to
obtain th e desired resu lts.
Gosh,
folks, i t ’s su rp risin g th e th in g s people
w ill tell you, if you w ill only ask them .
A t no tim e is in su ran ce m entioned in
m y first interview , th e en tire evening
is devoted to th e hopes, dream s, am ­
bitions and plans of Mr. and Mrs.
P rosp ect an d fam ily. I doubt if ever
in th e ir lives th ey have h eard th e ir
nam e m entioned so frequently. B ut
th e y love it. A fter g ettin g th e p ro b ­
lem identified in term s of m inim um
incom e and agreed upon, g ettin g th e ir
policies and m ak in g a definite date for
th e n ex t interview , I am on m y way.
L iterally, if th e b an k s w ere open at
n ig h t I could stop and b an k th e com ­
m ission a fte r th a t first interview .
W hy? N ine out of te n are sales. L e t’s
be specific. I am going to cite a
p a rtic u la r case and th e events th a t
h appened as accu rately as possible.
T his g en tlem an is th e sales m anager
of th e Shell Oil C om pany in D etroit, a
necw om er to our city, w ho w as
phoned a fte r hav in g received a le tte r
from me. An ap p o in tm en t w as m ade
for an evening in terv iew at his hom e

I

first Interview

By N orm an A . H e rb e rts
Pacific Mutual Life Ins. Co.
Detro it, Michigan

N O R M A N A. H E R B E R T S

w ith his w ife and him. I alw ays use
one opening rem ark w hen first m eet­
ing Mr. P ro sp ect’s wife. L et me give
it to you verbatim . “Mrs. Prospect, I
am pleased to have th is op p o rtu n ity of
m eeting you and talk in g w ith you for
th e reason th a t I m uch p refer talk in g
w ith a m an ’s wife th a n w ith his
w idow .” If I have done a good job
of talk in g w ith his wife, and solving
th e ir problem s, it m akes any subse­
q u en t relations w ith his w idow m uch
m ore pleasant. A fter finding out all
of th e p e rtin e n t inform ation, such as
dates of b irth , children, earned in ­
come if possible (and you w ould be
su rp rised how m any w ill tell you
th is), observing hom e surroundings, I

am th en ready to identify problem and
fix problem .
“Mrs. Prospect, m y job is to help
you identify certain specific problem s
th a t confront you and your fam ily and
th e n to pre-adm inister yo u r presen t
esstate against th is job th a t m u st be
done. I believe if you spoke your
m ind m ore freely, you w ould like to
know m ore fully th e exact position
th a t you w ould find yourself in, should
some em ergency arise.” (I have never
failed to get agreem ent here.) “H ere
I find a loving wife and m other, a
14 y ear old daughter, and a fine fath er
and provider, successful and am bi­
tious to get ahead. Should som ething
happen to th is fath er, he takes w ith
him to his grave all of his potential
earn in g power! H is salary as sales
m anager of Shell Oil Com pany ceases
rig h t then. T hen you, Mrs. Prospect,
take over and yo u r only problem at
th a t tim e is to find a new source of
income. T h a t’s easy, isn ’t it? I should
say it is not. You and this lovely 14
year old girl, aro u n d w hom you have
b u ilt so m any plans, w ill have to have
th e sam e th ings after daddy is gone,
th a t you req u ire today. A hom e to
live in, clothing on your backs, and
food in your stom achs.
You w ill
eith er live in th is hom e or in an o th er
equally as com fortable, and all of the
o ther fixed m onthly charges th a t you
pay today out of dad’s check w ill still
have to be met. A ny debate about
th at, Mrs. P rospect?” I th en take out
a G uhne C hart and en um erate all of
th e fixed necessary m onthly charges,
stressin g m inim um s, of course, al­
w ays attem p tin g to take aw ay (and
th ey don’t like th a t p a rt of it) and we
arriv e at a figure necessary u n til th is
d au g h ter is e ith er m arried or selfsustaining. T hen we find th e am o u n t
necessary to provide for m o th er afte r
th a t tim e, so th a t she m ay live and
stay popular w ith dau g h ter and a
possible unw illing son-in-law (and in ­
cidentally, th ey all w an t to live alone)
and we saddle th a t on in term s of
Northwestern Banker


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Federal Reserve Bank of St. Louis

January Í9J2

26
m inim um s. A nd so on th ro u g h all th e
rem ain in g problem s, being sick too
long, living too long, fo rever stre ss­
ing th e need and im portance of a new
source of incom e a t th a t tim e. If
th ere are no oth er dependents, such

as a m o th er or fath er, b ro th ers, or
sisters, I ask for his policies. In m ost
cases th ey are a m aze of confusion,
and I casually m ention th a t w hen I
re tu rn w ith m y x-rays, even th e ir 14
y e a r old d au g h ter w ill know and
u n d e rstan d w h at m o th er and she w ill
get u n d er certain conditions, and m y
p a rtin g w ords are th a t if m o th er and
dad have a plan th a t w ould do all of
those things for them , th ey w ill never
have to save m oney any o th er place
and w ould have com plete peace of
m ind and financial independence.
In th is two-act play th e first in te r­
view is ju st th e prelude, th e second is
th e g ran d finale, and th a t is w here
you b rin g all your h istrionic ability
into play. On th e w ay out of th e m an ’s
hom e I generally w histle “H earts and
F low ers.” It puts me, in th e parlance
of th e show w orld, “in th e mood.”
H earts are certainly sym bolic of love,
an d flowers are for sick people and
the dead. Isn ’t th a t w h a t I w an t to
ta lk about? A fter th a t it is ju s t a
question of show ing them the resu lts

r

EMPLOYERS
MUTUAL

*

CASUALTY COMPANY
DES MOINES
An Agency Company — Assets Over $4,000,000

L

L

• Automol
Automobile Insurance
• Workmen’s
wc
Compensation
9 General Liability
1 Elevator Insurance
* Plate Glass Insurance

LL

of th e ir p resen t insurance, geared
against th e problem as we identified
it, agreed upon it, and offering th e
solution. I am not going to atte m p t
a sales talk here, it w ould tak e m uch
too long, b u t m erely touching on one
phase of th e problem , “living too
long,” and I select th is because all
m en have a slightly selfish m otive,
and I love to dram atize th e m isery
of old age u n p repared, as ag ain st th e
com fort, peace of m ind, and secu rity
of a re tire d gentlem an. T here is little
com parison betw een th e pain of a
b usted pocketbook and th e pangs of a
broken h eart, b u t w hen you are forced
to en d u re th em both a t th e sam e tim e,
it is generally m ore th a n one h u m an
can endure. Yes, Mr. Prospect, som e­
one w ill have to pay for th is old m a n ’s
an n uity. E ith e r you w ill pay for it
now as a healthy, prosperous, w age
earn in g young m an, or you w ill pay
for it la te r in th e m ost expensive and
painful m ethod th e re is, w orry, strife,
discouragem ent, loss of friends, selfrespect, and th e b itte re st of all, loss of
th e ad m iration and respect of th e only
person w ho ever th o u g h t you w ere a
cham pion, yo u r ow n daughter.
T h a t’s caustic? M aybe so, b u t it ’s
tru e, and I am here to tell you th e
w ay life is lived, n ot as we feel it
should be lived. E ith e r you w ill h av e
m oney or you w on’t. No one w ill p u t
it th ere for you, w ill he? A nd you
can ’t s ta rt an y younger, can you?
L e t’s w rite th e last ch ap ter in th e
financial career of th e g reatest fam ily
corporation th a t ever lived. W rite
y o u r nam e here.—-THE EN D .

Tax Savings Guide
“W h at P rice G iving?” is th e title of
a h an d y and a u th o ritativ e ta b u la r
guide to tax com putation issued by
The P ublic N ational B ank and T ru st
Company, 37 B road Street, New York.
A valuable featu re of th is copy­
rig h ted innovation in pocket tax
guides is th a t th e read er is enabled to
find, a t a glance, th e am ount by w hich
his estate tax and incom e tax w ill be
reduced as a re su lt of a donation or
gift of a portion of his property. C lear­
ly show n also is th e m an n er in w hich
the increases in gift tax rates becom ­
ing effective on J a n u a ry 1, 1942, effect
gift taxes and estate ta x savings.
T he booklet has a new and ingenious
dual parallel fold featu re w hich en ­
ables th e read er to find th e correct es­
tate, gift and incom e taxes on a given
incom e a t a glance. T his novel in ­
sta n t ta x finder has an extrem ely w ide
range, since it covers estates ru n n in g
up w ard from $100,000, taxable incom e
from $10,000, gifts from $10,000, and
“incom e from donated p ro p e rty ” from
$ 1 , 000 .

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1942

27

Lundy Named President
A t th e an n u a l m eeting of th e Iow a
M utual In su ran ce E x ecutives Associa­
tion, R ussell F. L undy, p resid en t of
th e M utual S u rety C om pany of Iowa,
w as elected p resid en t to succeed W.
A. R utledge w ho is secretary of th e
F a rm e r’s M utual H ail In su ran ce Com­
pany. M erle D. M organ, secretary of
th e Square Deal In su ran ce Company,

book fills th a t req uirem ent. T he new
law goes far beyond th e popular con­
cept of b an k ru p tcy as a m eans of liqui­
dating and closing an insolvent busi­
ness. T here are broad and flexible p ro ­
visions for enabling a business in tro u ­
ble to c arry on, u n d er th e portions
dealing w ith corporation reorganiza­
tio n and arran g em en ts. These open
up to th e general p ractitio n er a field
of practice w hich has heretofore been
largely re stricted to specialists in
b an k ru p tcy law. The H andbook of­
fers a dependable guide in w orking out
problem s of th is character.

Guaranty Trust, N. Y.
The statem en t of condition of the
G u aran ty T ru st Com pany of N ew Y ork
as of D ecem ber 31, 1941, show s total
resources of $2,558,587,698.49, and de­
posits of $2,259,895,401.49. H oldings of
U nited States go v ern m en t obligations
to tal $1,018,486,210.88, and loans and
bills purchased are $550,865,729.43. The
com pany’s capital and su rp lu s rem ain
unchanged a t $90,000,000 and $170,000,000, respectively, and undivided profits
to tal $19,470,856.52, as com pared w ith
$16,946,499.61 a y ear ago.

Life i n s u r a n c e d o l l a r s do a

TRIPLE JOB for VICTORY

R U S S E L L F. L U N D Y

w as elected secretary of th e A ssocia­
tio n to succeed H a rry L. Gross w ho is
a ssista n t se cretary of th e Iow a M utual
T ornado In su ran ce Association.
The Iow a M utual E x ecutives Asso­
ciation is m ade up of th e executive
officers of Iow a M utuals w ritin g in s u r­
ance o th er th a n life.

Joins National Marine
N ational S u rety M arine In su ran ce
C orporation announces th e a p p o in t­
m en t of D onald A. Yocum as special
agent. H e w ill spend his en tire tim e
in th e field v isitin g vario u s agencies
and b ran ch offices.
Mr. Yocum began his m arin e in s u r­
ance career in J a n u a ry 1929 as an
u n d e rw rite r for th e St. P au l G roup
and has re p re se n te d th em in th e field
for th e p ast four years.

New Book
H andbook on B an k ru p tcy , by A.
L incoln L avine, of th e New Y ork Bar,
is obtainable th ro u g h Professsional
P ublications, Inc., N ew Y ork City, 276
pages, $2.75 p ostpaid U. S. A.
Since th e en actm en t of th e C handler
Law, otherw ise k now n as th e new N a­
tional B an k ru p tcy Act, th e re has been
a need fo r a concise and u n d e rsta n d ­
able w o rk th a t law p ractitio n ers,
cred it executives and b a n k ers could
have available for reference. This

L ife in su ra n c e d o lla rs a re b e in g m o ld ed in to g u n s, sh ip s, ta n k s ,

★

p lan es. A m e ric a n life c o m p a n ie s, th ro u g h

Sound, progressive management

th e ir p u rc h a s e s of

★

★

★

U. S. G o v e rn m e n t b o n d s, h a v e lo an ed o u r g o v e rn m e n t n e a rly

safeguards your NWNL policy

$6,0 0 0 ,0 0 0 ,0 0 0 o f th e p e o p le ’s sa v in g s. Since th e o u tb re a k o f w a r

Again NW NL presents the first complete
and fin a l life insurance balance sheet — p u b ­
lished as usual on the first business day o f
the N ew Year.
In 1941, NW NL has
— reduced to tal m anagem ent expenses,
despite rising operating costs and in­
creased insurance in force
— improved the quality o f sales and ser­
vice to policyholders
— reduced policy lapses sharply from 1940
— increased sharply th e percentage o f
m anagem ent expense dollars th a t are
paid to agents

in S e p te m b e r, 1939, th e life c o m p a n ie s' n e t in v e s tm e n t in G o v e rn ­
m e n t B o n d s h a s in cre a se d b y a ro u n d B illio n d o lla rs — e n o u g h to
b u ild 7,200 p u r s u it p lan e s, o r 13,000 m e d iu m ta n k s , o r 160 m o d ern
d e s tro y e rs , o r 12,500,000 G a ra n d rifles.
A n d — life in su ra n c e does n o t d o o n e d efen se jo b , b u t three. I t
h elp s a rm A m erica. I t also h e lp s w a rd off d e a d ly in fla tio n . A n d it
p ro te c ts you a n d y o u r fam ily a g a in st p ersonal d isa s te r, p ro te c tio n
w hich ev en m o re in tim e o f w a r th a n in tim e o f p e a ce is e s se n tia l
to n a tio n a l w elfare.
Life in su ra n c e , d e p e n d a b le s e rv a n t o f p eace tim e A m e ric a , now
help s p u t m u scle in th e fig h tin g a rm o f a n a ro u s e d , u n ite d n a tio n .
H ere is a liv in g e x a m p le o f th e t r u th t h a t tre m e n d o u s p o w e r in

NW NL is well prepared for w hatever tests
lie ahead. T h e co m pany’s p ast record and
th e F inancial S ta te m e n t below a tte s t th a t
"S e cu rity F irs t” is m ore th a n a slogan w ith
NW NL — it is its guiding principle o f m an ­
agem ent.

w a r, as in p eace, lies in th e v o lu n ta ry e ffo rts o f free m en a n d free
in s titu tio n s w o rk in g to g e th e r in a c o m m o n ca u se .

5 7 th A n n u a l F I N A N C I A L S T A T E M E N T D e c e m b e r 31, 1941

RESOURCES

LIABILITIES

U. S. G overnm ent S ecu rities................. (25.1% ) $21,799,108
Bonds Fully G uaranteed by the U . S .. ( 7.5% ) 6,451,854
C anadian G overnm ent S ecu rities............( .5% )
437,036
O ther B onds:
S ta te, C o u n ty , and M u n icip al............. ( 3.0 % ) 2,618,201
R ailroad M ortgage B o n d s..................... ( 6.1% ) 5,318,982
Railroad E q u ip m e n ts .......................... .( -8% )
683,127
P ublic U tility ........................................(15.7% )
13,638,610
I n d u s t r i a l . . . .......................................... ( 2.1 % )
1,817,558
M iscellaneous............................................( •#% )
652,710
F irst M ortgage L o a n s............................... (19.0% ) 16,491,993
Policy L o an s.................................................(10.6% )
9,229,752
R eal E s ta te (Inch H om e Office Bldg.
and R . E . Sold U nder C o n tr a c t) ... .( 2 .9 % )
2,533,777
P rem ium s, D ue and D e fe rre d ..................( 2 .5% )
2,179,026
In terest D ue and A ccrued and
V arious O th er A s s e ts..........................( -7% )
575,666
C a s h .................................................................. ( 2.7 % ) 2,301,683

.$65,497,759
Legal R eserve on P olicies.................................
.
N one
D e ath C laim s D ue and U n p a id ......................
234,628
C laim s for which Proofs are n o t C o m plete. . . .
P resent Value o f D e ath , D isability, and O th er
7,340,807
C laim s P ayable in In s ta lm e n ts .....................
P rem ium s and In terest P aid in A dvance and
Prem ium D eposit F u n d s ................................... 2,855,980
R eserve for Policy D ividends on D eposit and
D eclared for P ay m en t in 1942......................... 3,132,290
R eserve for Taxes P ayable in 1942.........................
310,091
653,581
M iscellaneous L iabilities............................................

T O T A L ..............................................(100% ) $86,729,083

Total L iabilities............................................ $80,025,136
V oluntary Contingency Reserves and Surplus F unds
fo r Further Protection o f Policyholders:
Special C ontingency R eserves*............................$ 1,899,693
G eneral C ontingency R eserve. . . . 650,000
U nallocated Surplus F u n d s ............ 2,504,254
P aid-in C a p ita l................................... 1,650,000 4,804,254
T O T A L ................................................................... $86,729,083

Insurance in F o rc e ................ $481,197,511

;b, and for policy dividends

Northwestern Ü V atioritií Ufe
IN S U R A N C E C O M P A N Y j É j i ^ O F

MggjjjjYA

O . J . A rn o ld

M IN N E A P O L IS

P re sid e n t

Northwestern Banker

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

★

January 1942

28

Defense Saving&Pav-Roll Allotment Plan

voluntary helps
pay-roll
helps
allotment
plan helps

workers provide for th e future

build future buying power

defend America today

This is no charity plea. It is a sound business proposition that
vitally concerns the present and future welfare of your company,
your em ployees, and yourself.
During the post-war period of readjustment, you may be faced
w ith the unpleasant necessity of turning em ployees out into a
confused and cheerless world. But you, as an em ployer, can do
som ething now to help shape the destinies of your people.
Scores of business heads have adopted the Voluntary Pay-roll
A llotm ent Plan as a sim ple and easy way for every worker in
the land to start a system atic and continuous D efense Bond
savings program.

...

M any ben efits
p re se n t an d fu tu r e . It is
more than a sensible step toward reducing the ranks of the
post-war needy. It w ill help spread financial participation in
N ational D efense among all of Am erica’s wage earners.
The widespread use of this plan w ill m aterially retard infla­
tion. It w ill “store” part of our pyram iding national income
that w ould otherwise be spent as fast as it’s earned, increasing
the demand for our dim inishing supply of consumer goods.
And don’t overlook the im m ediate benefit . . . money for
defense materials, quickly, continuously, w illin gly.

L et’s d o it th e A m erican w ay! Am erica’s talent for
working out emergency problem s, democratically, is being
tested today. As always, we w ill work it out, without pressure
or coercion . . . in that old American way; each businessman
strengthening his own house; not waiting for his neighbor to do
it. That custom has, throughout history, enabled America to
get things done of its own free w ill.

H ow big d o es a co m p a n y have to b e?
From
three em ployees on up. Size has nothing to do w ith it. It works
equally w ell in stores, schools, publishing houses, factories, or
banks. This w hole idea of pay-roll allotm ent has been evolved
by businessm en in cooperation with the Treasury Department.
Each organization adopts its own sim ple, efficient application
of the idea in accordance w ith the needs of its own set-up
I\o ch o re a t all. The system is so sim ple that A. T. & T.
uses exactly the same easy card system that is being used by
hundreds of com panies having fewer than 25 em ployees! It is
sim ple enough to be handled by a check-mark on a card each
pay day.
P len ty o f h elp available. Although this is you r plan
when you put it into effect, the Treasury Department is ready
and w illing to give you all kinds of help. Local civilian com­
m ittees in 48 States are set up to have experienced men work
with you just as much as you want them to, and no more.
Truly, about all you have to do is to indicate your w illingness
to get your organization started. We w ill supply most of the
necessary material, and no end of help.
The first ste p is to ta k e a clo ser lo o k . Sending in
the coupon in no way obligates you to install the Plan. It w ill
sim ply give you a chance to scrutinize the available material and
see what other com panies are already doing. It w ill bring you
samples of literature explaining the benefits to em ployees and
describing the various denom inations of D efense Savings Bonds
that can be purchased through the Plan.
Sending the coupon does nothing more than signify that you
are anxious to do som eth in g to help keep your people off relief
when defense production sloughs off; som ething to enable all
wage earners to participate in financing D efense; som ething to
provide tomorrow’s buying power for your prod­
ucts; som ething to get m oney right now for guns
and tanks and planes and ships.
France left it to “hit-or-miss”
N ow is the tim e for you to act!
or write Treasury Department,
Tw elfth St. NW ., W ashington, D.

,

In em erg en cies A m erica d o esn ’t d o things
64hit-or-m iss.” W e w ould get there eventually if we

F R E E - NO O B L I G A T I O N
T re a su ry D e p a rtm e n t, S ection A,

just left it to everybody’s whim to buy D efense Bonds when they
thought of it. But we’re a nation of businessm en who under­
stand that the way to get a thing done is to system atize the oper­
ation. That is why so many em ployers are getting back of this
Voluntary Savings Plan.
Like most efficient systems, it is amazingly sim ple. A ll you
have to do is offer your em ployees the convenience of having
a fixed sum allotted, from each pay envelope, to the purchase of
Defense Bonds. The em ployer holds these funds in a separate
bank account, and delivers a Bond to the em ployee each time
his allotm ents accumulate to a sufficient amount.
Each em ployee who chooses to start this savings plan decides
for him self the denom ination of the Bonds to be purchased and
the amount to be allotted from his wages each pay day.
GPO


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

. . . and m issed.
M ail the coupon
Section A, 709
C.

709 T w elfth S t. NW ., W ash in g to n , D. C.
Please send m e th e free k it o f m a te ria l being used by
co m p a n ie s t h a t have in sta lle d th e V oluntary Defense
Savings P ay-R oll A llo tm e n t P la n .
N am e
P osition
C om pany
A d d re ss __

428498

29

The M onths Market Maneuvers
D ecem ber brought
w ar hom e to us and
w ar brought low er
m arkets. B u t w ith ­
al orderly m arkets,
for the su rp rises of
the past tw o years
have hardened in ­
vestors to a point
w h e r e th ey a r e
JA M E S H. C LAR K E
p ractically p a n i c
proof. In the years w e have been w rit­
ing th is article w e have seen civil
strife in Spain, squabbles in South
A m erica, and a second w orld w ar get
under w ay. And all of th ese have
shocked our m arkets—hut the E x ­
ch an ges have con tinu ed to operate
through them . If 1929 and the few
years that follow ed did n oth in g else,
th ey su rely m ust have driven out of
the secu rity m arts m ost tim id in ­
vestors.

Prepared for
The Northwestern Banker

By James H . Clarke
Assistant Vice President
American National Bank & Trust Co.
Chicago

dum ped in th e m ark et and th e av er­
ages dropped 4.08 points. The next
day two and one-half m illion m ore
sh ares w ere trad ed and a decline of
3.24 resulted. B ut a fter th a t th e m a r­
k et read ju sted itself—absorbed th e sell­
ing ra th e r steadily and a good p a rt of
th e early losses w ere recovered.

B onds w ere w eak in D ecem ber—hut
hanks, insurance com panies and other
large in v esto rs w ere not sellers— so
m arkets did not get out of hand. The
D ecem ber is quite o ften a poor Treasury got a break in offering a
m o n th fo r sto cks— and as taxes have b illion and a half of n ew secu rities be­
increased, the selling of securities to fore the attack on H aw aii—although
establish tax losses has been an added the Fed has had to support th ese tw o
burden. B u t this year there was som e n ew issu es at par on several occasions
hope th a t D ecem ber m ig h t do better. in the past tw o or three w eeks. Cor­
Selling has been rather co nsistent for porate bonds, especially those in the
several m o n th s and the m a rk e t was in second grade group, w ere definitely
shape for a technical rally. T his was w eak er for a w eek or so hut w ere re­
coverin g as the m onth ended. Long
true even in the face of ta x sales
xohich had not been com pleted in N o ­ term m unicipals sagged sev en or eight
vem ber. The m o n th started off well. points. A w ar econom y gen erally
m eans h igh er in terest rates and low er
On D ecem ber second the Dow-Jones
in dustrial averages w ere up about two bond prices—th is tim e the strong con­
poin ts— On the n e x t day, over one. On trols w hich the G overnm ent can use
both of these days the vo lu m e of w ill tend to cu sh ion declines. In fact,
shares traded w as w ell over a m illion it is quite lik ely that the T reasury w ill
shares— alm ost tw o m illion, in fact, on be as su ccessfu l as has b een E ngland
D ecem ber third. B u t this gain in price in financing the w ar at a low in terest
cost.
was not to continue long.
A few quotes on G overnm ent issu es
w ill giv e us a b etter idea of ju st w hat
H ere are some of th e figures. T here
w ere tw enty-six days on w hich secu ri­ happened in the m arket during the
m onth. The Treasury 2%js of 1952/50
ties w ere trad ed d u rin g th e m onth.
F ifteen days saw losses recorded— —a popular issu e w ith hank s—w as
eleven chalked up gains. The Dow- quoted 108.5 on the hid side on the last
Jones averages w ere 114.23 on th e last trading day of N ovem ber. T his m orn­
day of tra d in g in N ovem ber—w ere in g it is 100.7—a drop of about tw o
111.32 on D ecem ber 31. A drop of b u t points. The lo n g est bonds—the ta x ­
2.91—appro x im ately th re e points w as able 2i/2s of 1972/67 w ere hid 102.19—
sm all considering all of th e bad new s. are n ow 100. L ook in g at the Treasury
n otes—the lon gest ones, the l ’s of
The m a rk e t sw ings d u rin g th e m o n th
w ere pronounced, how ever. The a v e r­ March, 1946 w ere 99.27 and n ow are
ages reached th e ir high early in th e 99.18, after sellin g down to 99.9.

m o n th —116.65 on D ecem ber 4. T his
stre n g th follow ed th e settlem en t of th e
railro ad co n tro v ersy and th e anno u n ce­
m en t th a t th e talk s w ith th e Jap anese
envoys h ad been extended. B ut on
M onday—th e day a fte r P earl H arb o r
— over tw o m illion sh ares w ere

D irect defense spending reached a
n ew high of $1,846,555,311 in D ecem ber
—$400,000,000 m ore than N ovem ber—
and fo u r tim es the am ount of D ecem ­
ber, 1940. On D ecem ber 31 the Federal
debt had reached the record level of

$57,938,123,096 — w h ich included sales
of defense savings bonds in the am ount
of $536,285,664 during the m onth. Also
a new record. Before this article is in
yo u r hands, figures for the n e x t budget
for the fiscal year ended June 30,1943,
shoidd be released. I t is expected that
spendings in excess of fifty billions for
w ar purposes alone w ill be included.
In short, banks w ill be buying lots
m ore g o verm n en t bonds before the
shooting ends.
New financing du rin g D ecem ber w as
m eager. In addition to some offerings
of railro ad equipm ent issues about the
only sale w as $3,700,000 N orth Shore
Gas 4%s of 1961 a t 101. The w ar came
along—th e issue w as slow, and th ere
are still bonds around at the offering
price. In our N ovem ber article we
m entioned a couple of bits of financing
w hich w ere about to be offered. The
Pacific Gas & E lectric 3s of 1971 w ere
sold at 105 b u t th is m o rn in g ’s W all
S treet Journal show s th e bid now at
99%. The o th er issue—P hiladelphia
E lectric Co. 2%s of 1971 w ere offered
at around 104. T he new spaper carries
them a t 100%. A p parently the long­
term low-coupon bond m ark et is a
dangerous one for buyers in these
tim es. One m ore good exam ple—the
issue of C entral Illinois Public Service
3%s of 1971, w hich w ere sold a sh o rt
tim e ago a t 107, are now bid 101%.
There are a num ber of corporate
issu es on file w ith the S. E. C.—but
w h eth er any w ill hit the January m ar­
k et w ill depend on w hat stren gth w e
see. The on ly one not m entioned pre­
v io u sly is $22,800,000 of V irginia P ub­
lic Service 3V2s of 1971 and $5,700,000
notes. The T reasury has already an ­
nounced tw o n ew series of tax n otes
dated January 1 and w ill have som e
refun din g also to do. T his refunding
could total around $1,095,000,000, in ­
cluding $426,000,000 in Treasury notes
due in March and the balance in
various issu es due or callable in the
first three m onths.

The outlook fo r business profits is
not easily predicted. Corporations w ith
w ar orders w ill operate at a trem en ­
dous clip—tw en ty-fo u r hours a day
and seven days a w eek in m o st cases.
B u t it w ill not be possible— at least not
popular— to m ake huge profits off gov­
ern m en t contracts. Labor costs w ill
continue high— taxes w ill be increased.
In te re st rates w ill rise, but govern­
m e n t controls in this field w ill probN orthw estern B anker


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

January 1942

30
ably be m ore effective th a n the at­
tem p ts w h ich w ill be m ade to place
price ceilings on tangibles. B u t there
is no reason w h y any of us should look
fo r m aterial gains in 1942— it can be a
happy n ew year only if it is a vic ­
torious one.

I. B. A. Pledges Support
A pledge of allegiance and su p p o rt
unanim o u sly adopted a t th e closing
session of th e In v e stm e n t B ankers
A ssociation of A m erica’s an n u al con­
vention w as tra n sm itte d to P resid en t
Roosevelt by Jo h n S. Fleek, of Cleve­

land, incom ing p resid en t of th e asso­
ciation, w hile still en ro ute hom e from
th e organization’s m eeting in Florida.
The In v estm en t B ankers Associa­
tion of A m erica stands sq uarely be­
h in d you and th e Congress in th is w ar,
Mr. F le ek ’s m essage to th e P resid en t
stated. “E ach and every one of us in
th e association is ready to do any and
all th in g s for th e defense of the nation.
W e offer ourselves and our organiza­
tions w h erev er and w h enever we can
serve.
“I quote from a resolution u n a n i­
m ously adopted a t our an n u al conven­

in

tion of D ecem ber 5th as follows: ‘In
th is tim e of n ational em ergency w e
again pledge to our governm ent th e
allegiance and su p p o rt of our associa­
tion.’
“Call upon us a t any tim e for a n y ­
thing. W e w ill do our utm o st.”

Two Dividends
T he board of directors of th e M er­
cantile-Com m erce B ank and T ru st
Company, St. Louis, M issouri, recently
declared tw o dividends of $1.50 per
sh are each, payable Ja n u a ry 1 and
A pril 1, 1942, to stockholders of rec­
ord th e 20th of th e m onth preceding
paym ent dates.

NEWS AND VIEWS
(C ontinued from page 15)
E v en before th e ban on th e sale of
autom obile tires, th e re w ere 5 m illion
w ho rode the su b w ays and th e ele­
vated trains every day in N ew Y ork—

The IN TERSTATE
FINANCE CORPORATION

of Dubuque, Iowa
EW an n u al report covering fiscal y ea r ending
N ovem ber 30, 1941, n ow a v a ila b le for distribu­
tion, sh ow in g m ore than $12,000,000 in w h o lesa le and
retail autom obile transactions h an d led during the
last tw elv e months.

N

Interstate offers financing w ith rates a s low a s $3
per $100 per year. Our p lan protects purchasers of
n e w cars and la te m odel u sed cars with nation-w ide
travel serv ices including all the principal benefits of
Motor Club m em bership.
O ne standard form of note is issu ed b y Interstate
F inance Corporation to cover all short term ob lig a ­
tions. This obligation is h eld b y lead in g banks and
institutions, a n d is offered in convenient maturities
and denom inations at current discount rates.
Prompt reply an d com plete information to all
inquiries. A ddress your request to . . .

IN T E R S T A T E

F I N A N C E CORPORATION
HOME OFFICE
Northwestern Banker

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Federal Reserve Bank of St. Louis

January 19'P2

DUBUQUE, IOWA

no doubt this figure w ill be increased
from now on.
John Clark Sim s, of Philadelphia,
w ho handles th e ad v ertisin g of th e
P hiladelphia N ational Bank, is one of
th e original officers of th e F inancial
A dvertisers A ssociation, being a th ird
vice presid en t th e first y ear th e asso­
ciation started , w hich w as in 1916. Mr.
Sims has long been active in th e b u si­
ness and ad v ertising affairs of P h ila­
delphia.
Scott C. P idgeon, vice p resid en t of
th e B ankers T ru st Company, Des
Moines, has every reason to be v ery
proud of his daughter, Jeanne, w hose
m usical tale n t has already w on for h e r
m any honors. On C hristm as E ve she
appeared on F red A llen ’s “Texaco”
program in N ew Y ork City, hav in g
been elected by Iow a State College a t
Ames as its m ost talen ted girl student.
Jean n e did a fine job of “k idding” w ith
th e inim itable F red A llen and th e n
b ro u g h t trem endous applause from
h e r studio audience for h er ren d itio n
of “E lm er’s T une.” C ertainly Jean n e
has a real fu tu re in th e m usical w orld.
D avid H. R eim ers, presid en t of th e
Live Stock N ational B ank of Chicago,
sen t us a holiday g reeting w ith a de­
licious and delectable W ilson ham
“you can c u t w ith a fork,” and all we
did need w as a fork an d increased
capacity.
Charles P. F isk e, vice presid en t of
G eneral M otors A cceptance C orpora­
tion, invited us to lunch w ith him re ­
cently in th e ir v ery delightful p riv ate
dining room. A t th e n ex t table w as

31

Football's M an-of-the-Y ear
Visits the Chase

COMMERCIAL
INVESTMENT
TRUST
IN C O R P O R A T E D

C o m m e r c ia l I n v e s t m e n t
T r u s t I n c o r p o r a t e d , with

P R O M I N E N T v isito r to the
Chase N ational B ank last m o n th
w as B ruce Sm ith, all-A m erican left
half-back on th e U n iv ersity of M inne­
so ta’s cham pionship football team .
Above: Bruce, G erald Finley, New
York atto rn ey , and R oland Irv in e, a
Chase vice president, are pictu red
w hile at luncheon in th e bank. Also
p resen t w as R o b ert Pape, Mr. Irv in e ’s
assistan t, w ho a rra n g e d th e visit.

A

A lfred P. Sloan, Jr., ch airm an of th e

G eneral M otors A cceptance C orpora­
tion.
George V. LaM onte, p resid en t of
George L aM onte & Son of N utley, New
Jersey , an d h is w ife h ad ju s t re tu rn e d
from a th re e w eek s’ trip to Sea Island,
Georgia, w h en we dropped in to visit
w ith him . Mr. LaM onte looked as dis­
tin g u ish ed an d handsom e as ever, and
w as w earin g a nice so u th e rn tan . Jim
A nderson, ad v ertisin g m anager, h ad
p u rch ased h im self a new B uick a few
m onths ago, before th e factory devoted
all of its a tte n tio n to hell for H itler,
m issiles for M ussolini an d a few ’’jobs”
for th e Japs.

The Only One
Son: “Dad, w h a t w as y o u r g re a te st
am bition w h en you w ere a k id?”
Dad: “To w ear long pants. A nd
I ’ve had m y w ish. If th e re is anybody
else in th is co u n try w ho w ears his
p an ts longer th a n I do, I ’d like to see
him .”

B ruce w as in New Y ork to receive
th e H eism an trophy, p resen ted each
y ear at th e D ow ntow n A thletic Club,
to th e n atio n ’s o u tstanding football
player. D uring his stay, he visited the
b ank w ith his father, L ucius A. Sm ith,
vice p resident of th e S tate B ank of
F arib au lt, M innesota, and w as in tro ­
duced to H. Donald Campbell, p resi­
dent of th e Chase, w ho also is a Min­
nesota alum nus.

LEGAL DEPARTMENT
(C ontinued from page 18)
prom pted by m alice or are g ro ssly in
excess of Avhat is required in th e per­
form ance of such duties.

W here a person in m ilitary service,
in obedience to th e order of a superior
officer directing th e perform ance of
th e specific act, does som ething th a t
w ould ord in arily be a crim e, is such
p erson norm ally liable in a crim inal
proceeding in a civil court?
No. W ith reference to liab ility in
the civ il courts of p ersons in the m ili­
tary and n aval serv ices for crim inal
acts, the gen eral rule is that obedience
to orders of a superior officer, at least
w here such orders direct th e perform ­
ance of a specific act, is a justification
for conduct w hich w ould oth erw ise
giv e rise to such liab ility, u n less the
order, in perform ance of w h ich the
act w as com m itted, w as so palpably
u n la w fu l th a t a reasonable m an w ould
have p erceived its u n law fu ln ess.

capital and surplus in excess
of $66,000,000, 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 rch asin g self-liqui­
dating accounts, and ex­
tends to automobile dealers,
household appliance dealers,
and to manufacturers 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 ounts from $1,000 to
$100,000, in maturities from
60 to 270 days and at cur­
rent discount rates. These
notes are payable at any of
our 315 depositary banks
located in principal cities
throughout the country.
L a te st p u b lish ed f i n a n c i a l
statement and list o f depositary
banks w ill be mailed upon request.
ADDRESS

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


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

January ,194-2

32

But No Chicken
“Give me a chicken salad,” ordered
the custom er.
“Do you w an t th e fo rty cent one, or
th e fifty cent one?” asked th e w aiter.
“W h a t’s th e difference?”
“The forty cent ones are m ade of
veal and pork, and th e fifty cent ones
are m ade of tu n a .”

Potato Pancake
“W hy are you ru n n in g a steam roller
over th a t field?” asked th e stran g er.
“I ’m try in g to raise m ashed po ta­
toes,” explained th e farm er.

THE

P ublic
National
B ank
AND
TRUST COMPANY
OF NEW YORK
Service — M aintaining an
intimate, personalized corre­
spondent bank service.
Experience—Officials with
years of service in this field,
assuring a knowledge of re­
quirements and valuable as­
sistance.
Policy — To cooperate with
out-of-town banks rather than
compete for business which is
rightfully theirs.

Ordnance Plant Steps Up Community
A ctivity
F E W m iles w est of B urlington,
Iowa, th ere is established one of
th e largest G overnm ent ordnance
plan ts in th e country, em ploying sev­
eral th o usand w orkers. M any of these
w o rk ers live in or n ear B urlington,
b u t in order to have available housing
and u tility facilities m any o thers have
located in nearby tow ns in th e vicinity
of th e plant. New London is one of
these tow ns, a few m iles w est of the
ordnance plant, and we asked V. Z.
B renem an, cashier of th e F arm ers
State B ank of New London, to tell us
a bit about “boom-town b an k in g ” as
it has affected his bank and com m u­
nity. He says:
“The establishm ent of the ordnance
p la n t n ear B urlington has increased
the population of our com m unity con­
siderably. As a result, the business
activ ity of the com m unity has in ­
creased proportionately. All lines of
business are v ery active.
“The banks have received some new
accounts from the w orkers, w hich m ay
be tem porary. The g reatest increased
activ ity noticed by the banks is in the
cashing of checks of the p lan t w o rk ­
ers, directly or th ro u g h th e local m er­
chants. As the resu lt of this th e banks
are forced to carry larger am ounts of
cash and ship in m ore frequently.
W e are m aking a charge of 10c per
check for cashing the checks direct,
or th e usual float charge of 3c per

A

ANNOUNCING
the O pening of our

DEWOFFICES
Suite 1027, Flem ing B uilding

G00DB0DV&CO.
MEMBERS

item for those deposited. T he m e r­
chants w ho carry accounts are paying
the 3c floating charge.
“W hile we get some revenue from
cashing th e checks, the added expense
involved in handling the business is
h ard ly m ore th a n m ade up by th e
charges. It adds considerably to the
w ork, and possibly the n et gain to the
banks will be small.
“The retail m erchants, filling sta ­
tions, garages, etc., and people w ho
have hom es or p ro p erty to ren t, are
g etting long prices and are really
m aking m oney out of the business.”

Federal Reserve Cashier
A llan M. Black, a ssistan t vice p resi­
dent of the Federal R eserve B ank of
Chicago, w as appointed cashier of the
bank by th e board of directors, C hair­
m an F ra n k J. Lew is announced. He
assum ed his new duties D ecem ber
15th.
Mr. Black has been w ith the bank
since Septem ber, 1918. w hen he w as
em ployed as an accountant in th e bond
departm ent. L ater, he served in the
auditing and planning departm ents.
H is first official position w as th a t of
m anager of planning to w hich he w as
appointed in 1934. A pril 1st of last
year he w as appointed a ssistan t vice
president. He is a m em ber of th e
board of tru stees of th e re tire m e n t sys­
tem of the F ederal R eserve Banks.

Declares Dividend
The board of directors of the F irs t
N ational B ank in St. Louis, a t a m eet­
ing last m onth, declared a dividend of
$1.00 per share, 60 cents of w hich w as
payable as an ex tra d istrib u tio n on
D ecem ber 15th to stockholders of rec­
ord D ecem ber 11th, and 40 cents to be
paid on F eb ru ary 28, 1942, to stock­
holders of record F e b ru a ry 24, 1942.
The dividend is the sam e as declared
a year ago. The board also voted addi­
tional com pensation to all em ployes in
service p rio r to Ja n u a ry 1, 1941, equal
to one-half m o n th ’s salary, and ad ­
ju sted am ounts for others.

NEW YORK STOCK EXCHANGE
R e so u rc e s o v e r

$1 7 5,0 0 0 ,0 0 0

L averne M. B arlow ,
Resident Manager
E ST A B L IS H E D 1 9 0 8

Charles E. Deuben,
MEMBER
NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION

N orth w e stern Banker

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

January 1942

Assistant Manager
PHONE 4-5121

Christmas Program
Follow ing an an n u al custom , th e
m ale chorus of the City N ational B ank
and T ru st Com pany of Chicago, m ade
up of 40 m em bers of the organization,
sang C hristm as carols on th e m ain
banking floor D ecem ber 23rd and 24th,
betw een 1:30 and 2:00 p. m. E lm er
Crabbs is the director.

33

Vice President Dies
B u rt C. H ardenbrook, a senior vice
p resid en t of th e F irs t N ational B ank
of Chicago, died D ecem ber 21st at his
hom e in W innetka. In 1915 he w as
elected vice p resid en t of th e F irs t
T ru st and Savings B ank, affiliated and
la te r consolidated w ith th e F irs t N a­
tional Bank. Since th a t tim e he has
been an executive officer serving in
m any im p o rta n t capacities, and w as
reg ard ed as an o u tstan d in g a u th o rity
on secu rity values. Mr. H ardenbrook
w as th e oldest m an in sen io rity of
service on th e staff, hav in g been con­
tin u o u sly connected w ith th e b an k for
m ore th a n fifty years, for thirty-five of
w hich he w as an officer. He w as born
N ovem ber 1, 1876, and lived in th e
Chicago area all his life. Mr. H ard en ­
brook w as a m em ber of th e Chicago,
Mid-Day, B an k ers and th e Glen View
Clubs, of th e Illinois Seniors Golf Asso­
ciation, A rt In stitu te of Chicago, and
th e M asonic fra te rn ity . He w as secre­
ta ry and d irecto r of th e F irst-T ru st
Jo in t Stock L and B ank of Chicago and
a d irecto r of th e First-C hicago Corpo­
ratio n and th e N ational Safe Deposit
Company.

In New Location
L av ern e M. B arlow , resid en t m a n ­
ager for th e Des M oines office of Goodbody an d Com pany, announces th a t
th e ir office is now located in Suite 1027,
F lem ing Building. T hey w ere fo rm er­
ly on th e second floor of th e Flem ing
B uilding. Goodbody and Com pany
are m em bers of th e N ew Y ork Stock
E xchange, th e New Y ork Curb E x ­
change, th e Chicago B oard of Trade,
th e N ew Y ork Cotton E xchange, and
o th e r prin cip al stock and com m odity
exchanges.
C harles E. D euben is a ssista n t m a n ­
ager of th e Des M oines office.

Dividend

nings and David M. Proudfoot, assist­
a n t secretaries, and E d w ard S. Brow n,
a ssistan t m anager of th e credit d ep art­
m ent. M essrs. D u rn er and F ay w ere
form erly a ssistan t treasu rers.

Semi-Annual Dividend
T he board of directors of the City
N ational B ank and T ru st Com pany of
Chicago, a t th e ir last m eeting of the
y e ar held on D ecem ber 31, continued
th e ir policy of declaring a sem i-annual
dividend of $2.00 per share, of w hich
$1.00 w ill be paid on F eb ru ary 2, 1942,
to stockholders of record as of J a n ­
u a ry 20, 1942, and $1.00 on May 1, 1942,
to stockholders of record as of A pril
20, 1942.
A tra n sfe r of $200,000 from u n ­
divided profits to su rp lu s account w as
also made. The b a n k ’s capital is now
$4,000,000, and su rp lu s $3,600,000.

C entral H anover B ank and T ru st
Com pany announces th e follow ing a p ­
pointm ents: E d w ard W. D urner, Milton F. E b e rh a rt and W illiam C. Fay,
a ssista n t vice presidents; T haddeus C.
Cox, a ssista n t tre a su re r; Gould J e n ­

Jo h n S. Fleek, p a rtn e r of th e Cleve­
land in v estm en t banking firm of H ay­
den, M iller and Company, has been
elected p resid en t of th e Inv estm en t
B ankers A ssociation of Am erica. Mr.
F leek also becomes chairm an of the
association’s public inform ation com­
m ittee and in th is capacity will serve
as a full-tim e executive of th e associa­
tion, tak in g a leave of absence from
his own business to assum e direction
of the com prehensive program of pub­
lic relations th a t th e I. B. A. has been
conducting for the last tw o years. He
w as a vice presid en t of the association
and one of those m ost active in its
public relations w ork, having served
as a m em ber of th e public inform ation
com m ittee u n d er th e aggressive ch air­
m anship of Mr. Connely since th e in­
aug u ratio n of th e program .

Salary Bonus

Northern Trust Dividend
At a reg u lar m onthly m eeting th e
board of directors of The N o rth ern
T ru st Company, Chicago, declared the
176th consecutive q u arterly dividend
am ounting to $4.50 a share, payable
J a n u a ry 2, 1942, to stockholders as of
D ecem ber 16, 1941.

Right and Wrong
Sonny: “Say, dad, w h at does a rg u ­
m ent pro and con m ean?”
Dad: “Well, son, pro is y o u r con­
vincing and unansw erable statem ent,
w hile th e con is th e contem ptible d rib ­
ble of th e o th er fellow.”

The board of directors of th e Chem i­
cal B ank & T ru st Company, New
York, has declared th e reg u lar q u a rte r­
ly dividend of 45 cents p er share on the
capita] stock of th e bank.
The directors also approved the pay­
m ent of a bonus on an n u al salaries to
all officers and em ployes, am ounting to
5 p er cent on the first $5,000, w ith an
additional 3% per cent on th e next
$5,000, and an additional 2 per cent on
all salaries above $10,000. T his pay­
m en t w ill also be m ade to officers and
em ployes in m ilitary service. The
Chemical B ank has paid a C hristm as
bonus continuously each year, w ith
one exception, since 1870.

BONDS

T he board of directors of The F irs t
N ational B ank of Chicago have de­
clared th e re g u la r q u a rte rly dividend
of $2.50 p er sh are on th e capital stock
of th e bank, payable Ja n u a ry 1, 1942,
to stockholders of record D ecem ber 23,
1941. The d irecto rs also added $2,000,000 from in te rio r reserv es to undivided
profits, and th e n tra n sfe rre d $5,000,000
from undivided profits to surplus, m a k ­
ing it $45,000,000. T he capital stock
of th e b an k rem ain s a t $30,000,000.

Appointments

Fleek Heads I. B. A.

Public Utility
In dustrial
R a ilro a d
M unicipal

A .C .A L L Y N and c

o m pa n y

Incorporated
lOO W e s t M on roe S tre e t, C h ic a g o
N ew Y o rk
R e p r e s e n ta tiv e s :

M ilw a u k e e
W a te r lo o

O m aha
D e s M oin es

B o sto n
C ed a r R a p id s

Northwestern Banker

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

January 1942

34

S T A T E M

E N T

O F

C O N D I T I O N

O F

F irst N atio n al Bank an d T ru st C o m p an y
o f M inneapolis
as at December 31, 1941
•

R
C a sh
U .

o n

S .

H a n d

D u e

fr o m

B an k s

G u a r a n ty
(U .

S .

a n d

.

.

.

$ 6 5 ,1 7 5 ,0 2 0 .5 0

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.

.

.

.

6 1 ,4 3 8 ,2 5 0 .0 0

F u n d
B o n d s

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B o n d s

w ith

C o m m is s io n e r

a n d

S

e c u

6 0 0 ,0 0 0 .0 0

o f B a n k s)

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

6 0 ,5 9 0 ,9 4 2 .4 0

r i t i e s ...............................................................

7 ,5 9 3 ,5 3 2 .6 7

D is c o u n ts

2 1 ,1 9 4 .7 8

v e r d r a f t s ..............................................................................................

B an k

B

In te r e st

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$

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.

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s i t s .............................................................................................................................

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$ 1 9 6 ,8 5 9 ,8 8 0 .9 7

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f i t s ............................................................... ...............

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.

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$ 1 9 6 ,8 5 9 ,8 8 0 .9 7

U . S . G o v e r n m e n t o b lig a tio n s a n d o th er s e c u r itie s c a r r ie d a t $ 2 5 ,3 9 9 ,1 7 9 .6 7 in th e J o r e g o in g s ta te m e n t a r e d e p o s ite d to secu re p u b lic f u n d s a n d f o r o th er p u rp o s e s r e q u ir e d b y l a w .

Member betterat Uefiosil Insurance Corporation

A f f i l i a t e d wi t h

Northwestern Banker

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

January 1942

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

35

Bigfork Bank Sold

M IN N E S O T A
NEWS
O. G. JO N E S
President
Red W ing

W ILLIAM DUNCAN, Jr.
Secretary
Minneapolis

Heads New Department

Bank Stock Subscribed

R obert F. L itchy, form er ag ricu ltu ral
ag en t of H um boldt county, Iowa, has
been added to th e F irs t N ational B ank
o rganization in A ustin.
Mr. L itchy, w ho w ill act as field m an
in charge of a g ric u ltu ra l credit, w ill
specialize in th e financing of feeds.
T he F irs t N ational B ank of A ustin,
according to N. F. Banfield, president,
has been in stru m e n ta l in financing
feeder livestock for th e p a st 10 years.
“B usiness has now grow n to th e ex ten t
th a t a full tim e m an should be in
charge of it,” he said.

A t a m eeting last m onth it w as
learned th a t m ore th a n 200 shares of
stock for a new b an k a t Tow er had
been subscribed and an application for
a c h a rte r for th e new b an k w as im m e­
d iately sen t to th e state ban k in g de­
p artm ent.
Sponsors of th e new b an k are M artin
G underson, A, M. Gornik, Jo h n Tregear, Jesse Sw anson and W illiam E.
Noyes, and at a later m eeting for th e
purpose of canvassing w h at stock had
or had n o t been disposed of, it w as
learned th a t all available stock had
been over-subscribed and th a t th ere
was no m ore to be had.

Install Burglar Alarm
R ecently th e F id elity S tate B ank of
M inneapolis in stalled one of th e best
b u rg la r alarm system s in use th ro u g h ­
o u t th e country. I t is w h a t is know n
as an “83 A larm ” system , giving both
b u rg la r alarm and v a u lt protection.
T he in stitu tio n h as been u sin g a v ery
com plete b u rg la r alarm to th e p re se n t
date, b u t th e new one is said to be one
step ah ead of all o thers, according to
one of th e officers of th e bank.

F u n e ra l services w ere held in Seafo rth last m onth for George H erb ert
Johnson, pioneer Redwood county resi­
dent, w ho died a t th e age of 79 years.
Mr. Jo h n so n helped to organize the
S ecurity S tate B ank of Seaforth, and
served as its p resid en t for th e first six
years. He also served as vice p resi­
d en t and d irector of th a t institution.

Elected Vice President

Make Final Payment

C harles W. B ritts, a ssista n t vice p re s­
ident of th e N o rth w est B ancorporation
of M inneapolis, w as elected a vice p re s­
id en t of th e F irs t N ational B ank of
W inona at a board of d irecto rs’ m eet­
in g held last m onth. Mr. B ritts w ill
assum e his du ties F e b ru a ry 1st.

I t w as announced last m onth by S. P.
Steen, tru stee, th at, beginning Monday,
D ecem ber 22nd, full and final p aym ent
w ould be m ade to all holders of tru s t
certificates in th e Clinton State B ank
D epositors T ru st F und.

Veteran Banker Deceased
Jo h n L. E v erts, for m an y y ears a
w ell-know n b u siness m an and b a n k e r
of A shby, died a t his hom e th e re last
m o n th follow ing an illness of over five
w eeks from leukem ia. H e w as 91 years
of age on his last b irth d ay .

Bank Clearings Increased
B ank clearings in D u lu th in 1941
show ed an increase of m ore th a n $20,000,000 com pared w ith a y e a r ago, th e
D uluth C learing H ouse A ssociation re ­
ported.

Pioneer Banker Dies

Accept Government
Positions
Miss A rdell B enke and Miss Bernice
Sm ith, clerks at th e Colum bia H eights
State Bank, left recen tly for W ashing­
ton, D. C., w here th ey w ill w ork for the
U. S. g overnm ent as stenographers.

New Assistant Cashier
N ew m an E. Olson, form erly principal
of th e M artin H ughes H igh School at
Buhl, has accepted a position as assist­
a n t cashier of th e F irs t N ational B ank
of Osakis, and assum ed his duties th ere
th e first of th is year.

L. M. L atterell of K elliher now has
a controlling financial in te re st in the
F irs t State B ank of Bigfork. The deal
w as com pleted last m onth, w hen Mr.
L atterell p u rchased stock ow ned by
four m en w ho to g eth er controlled m ore
th a n 50 per cent of th e stock. The m en
w ho sold to Mr. L a tterell w ere L. F.
H arm on, F ra n k T u rek of Bigfork,
F ra n k J. D ahlberg and W ard Johnson
of Effie.
So far as can be learned, th ere will
be no im m ediate change in policies for
the bank. C. F. G ilbertson, cashier at
Bigfork, w ill rem ain in th a t capacity.
The new ow ner of a m ajo rity of the
stock of th e B igfork b an k also has a
controlling in te re st in th e banks at
K elliher and a t N orthom e.

Hold "Smorgasbord
Commotion"
The e n te rta in m e n t com m ittee of th e
Twin City Bond T raders Club an ­
nounces a Sm orgasbord Com m otion for
Ja n u a ry 15th at th e D yckm an H otel in
M inneapolis. T he com m ittee, consist­
ing of A rt Rand, W oodard-Elwood &
Com pany; Don A nderson, F irs t N a­
tional B ank of St. Paul, and M aynard
Rue, W ells-Dickey Company, extend a
cordial in v itatio n to out of tow n m em ­
bers of th e security business fra te rn ­
ity.

Banker Passes Away
L. H. Rice, presid en t of th e G uaranty
State B ank and T ru st Com pany of St.
Cloud, died suddenly at his hom e last
m onth.
I t w as announced th a t H arold Riley,
ch airm an of th e board of th e b an k and
vice president, w ould hav e charge of
th e b a n k ’s affairs u n til th e an n u al
m eeting th is m onth.

After-Hour Depository
The F irs t N ational B ank of Cokato
has installed an after-hour depository
to accom m odate those of its custom ers
w ho find it convenient to m ake depos­
its after ban k in g hours.

Former Banker Dies
T hom as J. B urns, w ell-know n Mapleton resid en t and form er p resid en t of
th e F irs t N ational B ank there, died
recen tly at his hom e afte r an illness
of tw o years.

Joins Mazeppa Bank
A dam Poncelet of B ellechester has
joined th e staff of th e Peoples State
B ank of M azeppa as a ssistan t cashier.
Mr. Poncelet assum ed his duties J a n u ­
ary 1st.
Northwestern Banker


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

January 19k2

36
...

New President Elected

S ta te m e n t o f C o n d itio n

T h e

F ir s t
o f

N a t io n a l

Sa in t

Ba n k

P aul

as o f
D ecem ber J I y 19 4 1

•
R

e s o u r c es

Cash on Hand and Due from Banks

? 5 9 , 6 6 8 ,3 2 9 .0 I

U. S. Government Securities

2 8 ,7 6 6 ,0 0 9 .9 5

Bonds and Securities

5 ,6 8 7 ,2 8 1 .7 9

Loans and Discounts

7 0 ,9 3 9 , 6 7 0 -0 0

Interest Earned but not Collected

2 6 7 ,7 4 3 .0 9

Customers’ Liability on Account of Acceptances,
Letters of Credit and Foreign Bills
Stock in Federal Reserve Bank

102,6 7 6 .8 8

The directors of th e F irs t N ational
B ank of A lbert Lea are pleased to an ­
nounce th a t Roy W. D elaney has been
elected p resid en t of th e F irs t N ational
Bank, to succeed W illiam A. Gray, w ho
left Ja n u a ry 1st to accept a position
as vice p resident of th e City N ational
B ank of D uluth.
Mr. D elaney has had a long and
varied experience in the banking busi­
ness in M innesota and N orth Dakota,
having been a field rep resen tativ e of
th e N o rth w estern N ational B ank and
T ru st Com pany of M inneapolis from
A ugust, 1923, u n til F eb ru ary , 1930. and
from F eb ru ary , 1930, to Septem ber,
1932, w ith the N orthw est Baneorporation.
Mr. D elaney has been in Jam estow n
w ith th e Jam es R iver N ational B ank
from Septem ber, 1932, u n til th e p res­
ent time.

Surplus and Capital
Increased

Reserve for Accrued Taxes, Interest and Expenses
Reserve of Manufacturers and Others on
Notes purchased from them
Discount Collected but not Earned

7 0 3 ,7 2 0 .5 9

Increasing of its su rp lu s account to
$500,000 and its capital stru c tu re $1,000,000, w as announced by th e E m p ire
N ational B ank and T ru st Company,
St. Paul.
In m aking th e announcem ent Alex
H ighland, presid en t of the bank, said:
“To place the b ank in a b etter posi­
tion to care for its rapidly expanding
business, th e directors of th e E m pire
N ational B ank and T ru st Com pany
have authorized an increase of the
b a n k ’s su rp lu s account to $500,000.
The E m pire N ational B ank and
T ru st Com pany w as organized in April,
1926, and its deposits have steadily in ­
creased, now nearin g th e $10,000,000
m ark.

6 7 8 ,1 0 3 .6 2

Open House Held

Acceptances, Letters of Credit and Foreign Bills
Deposits

1 02,676.88

3 6 0 ,0 0 0 .0 0

Bank and Office Building

2 ,9 0 0 ,0 0 0 .0 0
$ 1 6 8 ,6 9 1 ,7 1 0 .7 2
L

ia b il it ie s

Capital Stock

$ 6 ,0 0 0 ,0 0 0 .0 0

Surplus

6 ,0 0 0 ,0 0 0 .0 0

Undivided Profits

1 ,8 3 5 ,4 0 0 .2 7

Unallocated Reserves for Losses

1 ,213,241.91

102,360.48

15 2 ,0 5 6 ,2 0 6 .9 7
$ 1 6 8 ,6 9 1 ,7 1 0 .7 2

U n i te d S ta te s G o v e r n m e n t o b lig a tio n s a n d o th e r s e c u r itie s c a r r ie d a t $ 1 8 , 9 5 7 , 6 0 7 .2 6 i n th e
fo r e g o in g s ta te m e n t a r e d e p o s it e d to se c u r e p u b lic f u n d s a n d f o r o th e r p u r p o s e s r e q u ir e d b y la w .

F r e d e r ic

R ic h a r d C. L i l l y , President
R. B i g e l o w , Chairman, Board of Directors

D epa rtm en t of B anks and B ankers

Alden B. Lathrop, Vice President
Lee A. Sauer, Assistant Cashier
Rodney F. Sturley, Assistant Cashier
Elmer M. Volkenant, Assistant Cashier
Wallace L. Boss, Assistant Cashier

The Blue E a rth State B ank held open
house last m onth to form ally presen t
to th e public its new ly rem odeled and
redecorated banking qu arters. Roses
w ere given to th e lady visitors, and
coffee w as served.
R em odeling of th e bank, w hich pro­
vided additional office space for the
loan d ep artm en t and m ore convenient
safe deposit v au lt facilities, w as m ade
necessary by increased business. In
addition to providing new office space
at th e re a r of the banking q u arters, th e
en tire b anking room has been redeco­
rated and fluorescent lighting fixtures
installed.

Install Night Depository
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

AFFILIATED

WI TH

Northwestern Banker

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

FIRST

January 1942

BANK

STOCK

CORPORATION

The Citizens N ational B ank of P ark
R apids has installed an a fter ho u r de­
pository, w hich w ent into operation
last m onth.

37

T

w i n

r
A. AM UNDSON, M innesota comI . m issioner of banks, has been a p ­
pointed to th e executive com m ittee of
th e N ational A ssociation of S u p er­
visors of S tate B anks by R. F. Starley, association p resid en t and U tah
b ank com m issioner.

C

it y

N

e w s

By James M . Sutherland
Special Correspondent

cers’ Club on the tw enty-eighth floor
of th e bank building.

A. AY. M cNee, cashier of F irs t N a­
tional B ank, St. Paul, has been nam ed
tre a s u re r of th e M innesota E m ployers
Association.

Guy AY. LaEone, vice presid en t of
F irs t N ational B ank & T ru st Co., has
been elected tre a su re r and a director
of the M inneapolis Civic Council.

Joyce F in ru d of F irs t N ational
B ank & T ru s t Co., M inneapolis, new
p resid en t of th e T w in City Bond
T rad ers Club, has appointed com m it­
tee m em bers for th e com ing year.
T hey are:
E xecutive C om m ittee, K eith M. B ar­
nett, N o rth w e ste rn N ational B ank &
T ru st Co., M inneapolis; F red S. Goth,
P iper, Jaffray & Hopwood, St. Paul,
and E dw ard J. K n igh t of W ells-Dickey
Co., M inneapolis.
Publicity, A lfred N. P lu n iley, F irs t
N ational, M inneapolis.
M em bership,
W alter
P.
Space,
T h rall W est Co., M inneapolis; W illiam
E. R itt, P ark-S haughnessy & Co., St.
Paul, and Bernard E. D echeine, J. M.
Dain & Co., M inneapolis.
E n te rta in m e n t, A rthur H. Rand, Jr.,
W oodard-Elw ood & Co., M inneapolis;
M aynard
Rue,
W ells-Dickey
Co.,
M inneapolis, and D onald N. A nderson,
F irs t N ational Bank, St. Paul.

W en d ell T. B urns, vice presid en t of
N o rth w estern N ational B ank and
T ru st Co., has been elected tre a su re r
of th e P hi Beta K appa A ssociation of
M inneapolis.

N um erous T w in City b a n k e rs a t­
tended th e U n iv ersity of M innesota’s
“conference on consum er credit in th e
n atio n al em ergency,” a three-day
m eeting at w hich all aspects of in ­
stallm en t cred it control w ere aired.
D irectors and officers of th e St.
P aul A ssociation of C redit Men w ere
guests of A rthu r L. P eters, assista n t
cashier of F irs t N ational B ank, St.
Paul, at a m eeting in th e F irs t Offf-

C hristm as p arties highlighted the
Yule season for a num ber of Tw in City
banks. T hey included:
M arquette N ational B ank and affili­
ates had W illiam F. K unze, vice p resi­
dent, as to astm aster a t th e ir p a rty at
Nicollet Hotel, attended by 130 p e r­
sons. Ralph AA7. M anuel, president,
spoke. *
F irs t N ational B ank & T ru st Com­
p a n y ’s G irls’ Club gave th e ir usual
p a rty for underprivileged children in
the b a n k ’s lobby. A bout 30 children
w ere e n tertain ed and received p res­
ents. K atherine Berger, club’s second
vice president, w as in charge.
The b a n k ’s chorus gave C hristm as
carol program s each noon d u rin g the
th ree days before th e holiday.
A m erican N ational Bank, St. Paul,
held its ann u al p a rty for em ployes and
th e ir fam ilies in th e b ank lobby, w ith
p resents for all. Otto Brem er, bank
chairm an, spoke.
N o rth w estern N ational B ank & T ru st
Com pany and affiliated city bank
offices held a d in n er p a rty a t Nicollet
H otel w ith 900 attending. A lden Dahl
of th e em ploye organization w as to ast­
m aster, w hile S h irley S. Ford, p resi­
dent, spoke.

M idland N ational B ank & T ru st
C om pany’s p a rty w as held afte r C hrist­
m as at the L eam ington Hotel, w ith
E lizabeth D ollenm ayer in charge. E d ­
gar L. M attson, president, spoke.
Charles W. B ritts, a ssistan t vice
presid en t of N o rthw est Bancorporation, M inneapolis, w ill assum e new
duties F e b ru a ry 1 as vice presid en t of
th e Banco affiliate, F irs t N ational B ank
of W inona, J. C. Thom son, p resid en t
of th e b ank holding com pany, has an ­
nounced. Mr. B ritts came to M inne­
apolis from D uluth and w as associated
w ith N o rth w estern N ational B ank &
T ru st Co. for 10 y ears before joining
Banco in 1937.

The board of directors of th e F ed­
eral R eserve B ank of M inneapolis
has re-elected L ym an E. W akefield,
p resident of F irst N ational B ank and
T ru st Com pany of M inneapolis, as
m em ber of the F ederal A dvisory
Council for 1942, rep resen tin g the
N inth F ederal R eserve district.
D irectors also re-elected P eter P auly
as a director of the H elena b ran ch for
a tw o-year term beginning Ja n u a ry 1.
Mr. P auly is presid en t of th e Deer
Lodge B ank and T ru st Company, Deer
Lodge, M ontana.

John Scott Honored
Jo h n F. Scott, St. Paul, w as elected
second vice presid en t of th e U nited
States Savings and Loan League at
th e an n u al convention in Miami, F lo r­
ida.
N om inated w ith o u t opposition, Scott
took office w ith F erm o r S. Cannon,
Indianapolis, president, and R alph H.
Cake, P ortland, Oregon, first vice p res­
ident.
T he election practically a s s u r e s
Scott’s being nam ed presid en t two
y ears from now.
Mr. Scott is presid en t of the M inne­
sota F ederal Savings and Loan Asso­
ciation w ith offices in M inneapolis.
N orthw estern B anker


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

January 19^2

38

Study Group Organized
C. B. “O tto” New m an, vice president,
Dodge C enter S tate Bank, Dodge Cen­
ter, w as elected p resid en t of th e new ly
organized Tri-county Study Group of
th e A m erican In stitu te of B anking.
O ther banks rep resen ted at th e org an i­
zation m eeting held last m onth in Owato n n a w ere th e Security N ational B ank
and T ru st Com pany of F arib au lt, State
B ank of F arib au lt, S ecurity B ank and
T ru st Com pany of O w atonna and The
F irs t N ational B ank of O watonna, in
w hose room s th e m eeting w as held.
STATEM ENT OF
It w as stated at th e m eeting th a t
W aseca w as to have also been re p re ­
C O N D IT IO N
sented.
N orm an L. W icklow, a ssistan t cash­
A t the Close of Business
ier, S ecurity B ank & T ru st Com pany of
DECEMBER 31, 1941
O w atonna, presided as tem p o rary
ch airm an and he w as assisted in the
RESOURCES
a rra n g em en t by C. J. LaRoue, assistan t
cashier, F irs t N ational B ank of Owa­
Loans and D iscounts____$3,714,306.37
tonna.
Vaults and Fixtures_________________ 16,272.85
O ther officers elected w ere Miss
Other A s s e ts ____________
41,090.59
H elen Schult of th e S ecurity N ational
U. S. Gov’t.
B an k and T ru st Com pany of F arib au lt,
B o n d s ___ $1,271,646.35
as vice president, and Miss B etty R ich­
Other Bonds
ardson of The Security B ank and T ru st
and
Com pany of O w atonna as secretarySecurities _ 560,304.94
tre a su rer. M em bers of th e board of
Cash and Due
governors,
in addition to th e officers,
from Banks 3,799,867.19 5,631,818.48
are W encl W albert of th e F irs t N a­
tional Bank, O w atonna; Miss C ath­
TOTAL ____________ $9,403,488.29
erin e Cook of th e S tate B ank of F a ri­
bault, and Sid Sieracki of th e F irst
LIABILITIES
N ational B ank of Owatonna.
The p relim in ary organization w ork
C a p ita l_________________ $ 250,000.00
for
th is stu d y group w as done by Roy
Surplus ________________
250,000.00
O. O verm ann of th e F irs t T ru st Com­
Reserves and
pany, St. Paul, ch airm an of th e MinneU ndivided Profits__________________ 118,871.10
Other

L iabilities------------

D eposits

23,314.33

_______________ 8,761,302.86

TOTAL ____________ $9,403,488.29

•
OFFICERS
J. F . R ingland .................President

A. A. B ibus .............. Vice President
J. C. Moore........ .......Vice President
J . M. Kane ....................... ....... Cash.
J. G. McGarraugh....... A sst. Cash.
C. W. Messenger..........A sst. Cash.
A. T . Larson................. A sst. Cash.

STOCK Y A R D S
NATIONAL BANK
SOUTH ST. PAUL, M IN NESOTA
Member

Federal Deposit Insurance Corporation

For safety of
principal plus a
good return...
. . . There are certain definite
advantages in investing w ith
Twin City Federal Savings &
Loan Association :
A 3 per cent current dividend rate
(this rate paid continuously since
1936).
★ Accounts Federally insured up to
$5,000.
A Seventh largest Federal Savings
and Loan A ssociation in the
U nited States.
A Established in 1923.

If you seek safety and stability,
coupled w ith liberal return, we
invite your inquiry.

sota B ankers A ssociation A. I. B. com ­
m ittee, w ho w as p resen t a t th e m eeting
in an advisory capacity. Also p resen t
at th e m eeting w as S. J. K ryzsko, as­
sistan t cashier and a ssistan t tru s t offi­
cer, The W inona N ational & Savings
B ank of W inona, associate councilm an
for so u th ern M innesota. B. F. P erkins,
presid en t of W inona C hapter; H. M.
Kowalczyk, secretary - tre a su re r, and
W. M. L am bert visited th e group w ith
Mr. K ryzsko.
C ooperating w ith Mr. O verm ann in
th e p relim in ary organization w ork
w ere Roger W. Peavey, president, Se­
c u rity N ational B ank & T ru st Com pany
of F arib au lt, and Jo h n C arlander, p res­
ident, S tate B ank of F arib au lt, to ­
g eth er w ith Mr. W icklow and Mr. LaRoue. D. C. Stockm an, a ssistan t cash­
ier, N ational B ank of Commerce, M an­
kato, w as p resen t at an earlier m eeting
as M. B. A. com m ittee m em ber.
Mr. C arlander w ill be in stru c to r for
th e class in b an k organization and
operation, w ith an in itial en ro llm en t
of 18. Classes w ill a lte rn a te m o nthly
betw een F a rib a u lt and O watonna.

4-H Club Meeting
Two h u n d red and fifty 4-H Club
m em bers and th e ir p aren ts m et at Je f­
fers recen tly for th e 4-H A chievem ent
P arty , sponsored by th e C ounty B ank­
ers Association.
The ban k ers w ere rep resen ted by Os­
car Nelson, W indom ; T. V. P eterson,
W estbrook, and Jam es Redding of
B ingham Lake. Mr. N elson gave a
c h a rt ta lk before achievem ent pins
w ere aw arded by th e b an k ers to all
m em bers w ho com pleted a pro ject in
1941.

JAMIESON
&

CO MPA NY
Stocks
Bonds
Grain

q

Cotton
Butter
Eggs

C om m odity Brokers
•
Members

N ew York Stock E xchange
and Other Principal Exchanges
•
ST. PAUL — MINNEAPOLIS
•

S a v in g s a n d L oan A sso ciatio n

G overnm ent — M unicipal
Corporation Bonds
•
CHARLES C. RIEGER

M in n e ap o lis, M in n eso ta
R eso u rces n o w e x c e e d $15,750,000

Bond Department

Twin City Federal

Manager
Minneapolis — Atlantic 8235
_____________________________________

Northwestern Banker

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

January 1942

39

• M I N N

Completes Successful Year
The T w in City F ed eral Savings and
Loan A ssociation has ju s t closed its
m ost successful year, according to
sta te m e n t by Roy W. L arsen, vice p re s­
ident. T otal resources of th e associa­
tion now am o u n t to over $15,750',000,
m em bers’ accounts hav in g increased
m ore th a n $3,300,000 d u rin g th e p ast
year. T he association’s reserv es now
am o u n t to m ore th a n a half m illion
dollars, h av in g been su b stan tially in ­
creased d u rin g 1941, in addition to p ay­
m ent of th e association’s c u rre n t divi­
dend ra te of 3 p er cent. T he associa­
tion is now th e sev en th larg est F ed eral
savings and loan association in th e
U nited States.

Moorhead Bank Remodels
An extensive pro ject of rem odeling
and red eco ratin g th e A m erican State
B ank of M oorhead is u n d e r w ay and
w ill be com pleted soon, according to
O. M. Alme, cashier.
A new fro n t of glass block and pol­
ished stone is to be installed and th e
in te rio r of th e b a n k q u a rte rs w ill be
enlarged and rem odeled. Stream lined
fixtures w ill be installed.
T he lobby is to be larg er and th e re

ESOT A

NEWS

w ill be four tellers’ w indow s instead
of th re e as at present. A p riv ate con­
ference room is to be erected n ear th e
fro n t of th e building.
T he p ro ject is being handled by A.
M oorm an and Company, b an k building
architects.

Bank Cashier Resigns
Effective J a n u a ry 1st, E ivind Brogger, cashier of th e S tate B ank of B u t­
terfield, resigned his position.
The b an k w ill be v ery so rry to lose
th e services of Mr. Brogger, w ho
sta rte d w ith th em in 1907, w hen he
becam e bookkeeper.
Mr. B rogger has found it necessary
to give up his w ork because of his
h ealth, as doctors have advised him to
cu t dow n on confining w ork and get
outside more.

•
ho u r com m unity singing w as led by
C. C. Rieger, accom panied by Dr. Rolf
H artig at th e piano, both of M inne­
apolis.
A n in te re stin g p rogram w as re n ­
dered. F ra n k P. Pow ers acted as to ast­
m aster.
T he guest sp eaker of th e evening
w as Dr. G ustav E kstrom of M inneap­
olis, th e noted astrologist and p re­
dictor of fu tu re events.

Bertha Bank Robbed
B ank robbers recen tly drilled a hole
th ro u g h th e v au lt door of th e safe in
th e F irs t N ational B ank of B ertha, and
besides tak in g w h a t m oney w as found
in th e safe, also rifled safety deposit
of p atro n s of th e bank. L atest rep o rts
are th a t th e yegg m en took $2,717.50
from th e vault. No trace of th e rob­
bers have been u n earth ed to date.

Mora Bank Entertains
The an n u al b an q u et and program
given by th e officers and directors of
th e K anabec State B ank of M ora to th e
cream ery operators and directors of
th a t v icinity w as held at th e F a rm e rs’
C ooperative C ream ery A uditorium in
M ora recently. The large hall w as
filled to capacity and d u rin g th e din n er

Receives Promotion
P aul H. P eterson, w ho in 1917 w ent
to w ork for th e C ity N ational B ank of
D uluth as a m essenger, recently w as
prom oted to th e position of assistan t
cashier, H erm an C. Matzke, presid en t
of th e bank, announced. Mr. P eterson
has been chief clerk since 1932.

Empire N a tio n a l Bank and T rust Com pany
ST. P A U L , M IN N E S O T A
Statem en t of C ondition as of D ecem b er 31, 1941
RESO U RCES
Cash in V au lts, due from F ed eral R eserve B an k and other B an k s ..................... . ...................................................$ ^’eoo’nen nn
U n ited S ta tes G overnm ent S ecu rities— D irect and F u lly G u aran teed — D u e w ith in 3 y e a r s ..............................
^
U n ited S ta tes G overn m en t S ecu rities— D irect and F u lly G uaranteed— D u e after 3 but w ith in 5 y e a r s .. .
220,700.00
U n ited S tates G overnm ent Secu rities— D irect and F u lly G uaranteed— D u e after 5 but w ith in 10 y ea rs. .
255,225.00
U n ited S ta tes G overnm ent Secu rities— D irect and F u lly G uaranteed— D u e after 10 but w ith in 15 y e a rs.
262,800.00
M unicip al B o n d s— D u e w ith in 3 y e a r s ...........................................................................................................................................
M unicipal B on d s— D u e after 3 but w ith in 5 y e a r s ....................................................................................................................
^7,675.05
O ther B o n d s and S e c u r itie s..................................................................................................................................................................
L o a n s and D is c o u n ts ................................................................................................................................................................................
S tock in F ed eral R eserve B a n k .........................................................................................................................................................
In ter est E arned but N o t C o lle c te d ..................................................................................................................................................
F urniture and F ix tu res and Safe D ep o sit V a u lts ....................................................................................................................

269,259.50
4,945,183.49
27,457.98
29,302.46

T O T A L R E S O U R C E S ..................................................................................................................................... $11,027,311.86
L IA B IL IT IE S
C apital S to c k ...........................................................................................................................................
Surplus .......................................................................................................................................................
U n d ivid ed P rofits and R e s e r v e s ....................................................................................................
R eserved for T a x e s, In terest, and A ccrued E x p e n s e ......... ............ ..................................
D isco u n t C ollected but N o t E a r n e d ...........................................................................................
D e p o sits:
.........................................
D em an d .............................................. ..............................................................................
T im e .......................................................................................
T o ta l D e p o sits ................................................................................................................
TOTAL

L I A B I L I T I E S .............................................................................

..............................$
..............................
..............................
..............................
..............................
$8,047,068.26
1,797,366.70

500,000.00
500,000.00
93,667.89
28,643.46
60,565.55

9,844,434.96
$11,027,311.86

ALEX. HIGHLAND, P re sid e n t
Robert

at

F ifth

M e m b er F e d e r a l D e p o s it I n su ra n ce C orp o ra tio n

St. P a u l, M in nesota

N o rth w e stern Banker

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

January 1942

40

• M I N N E S O T A

Association Meets
L ast m onth th e M innesota Valley
B ankers C learing H ouse Association
held its annual m eeting at H enderson,
w ith ban k ers from th e counties of Le
Sueur, Nicollet, Scott, Sibley, Carver,
and McLeod. Several p ro m in en t sp eak­
ers w ere on th e program , including O.
G. Jones of Red W ing, p resid en t of th e
M innesota B ankers A ssociation. Mr.
P eterso n has served as p resid en t of th e
association d u rin g th e p ast y ear and at
this m eeting A. G. Sirek, cashier of the
State B ank of New Prague, w as elected

NEWS*

to succeed him. The association has
done m uch in the p ast to m ake b an k ­
ing practices m ore uniform and d uring
th e p ast year Mr. P eterson states th a t
considerable w ork has been done in
prom oting the sale of U. S. defense
bonds by banks.

Tri-County Meeting
B ankers of th ree counties w ere in
W illm ar recently for the reg u lar m eet­
ing of th e Tri-County B ankers Associa­
tion at the L akeland Hotel. More th an
six ty b an k ers and bank em ployes at-

tended th e m eeting w ith m ore th an 50
of th a t num ber from outside th e city.
W. E. B erglund of Pennock, presi­
dent of th e association, presided at the
program at w hich the subject of “Con­
su m er’s C redit” w as discussed.

Quarterly Dividend
The board of directors of M anufac­
tu re rs T ru st Com pany has declared
the reg u lar q u arterly dividend of 50
cents p er share on the common stock,
payable on Ja n u a ry 2, 1942, to stock­
holders on D ecem ber 15, 1941.
The board also declared the reg u lar
q u a rte rly dividend of 50 cents per
share on the p referred stock, payable
Ja n u a ry 15, 1942, to stockholders of
record on D ecem ber 30, 1941.

‘The Bank at the Y ards’

Banks Are Ready

Statem ent of Condition, Decem ber 31, 1941
RESO U RCES
L oan s and D is c o u n ts .....................................................$ 3,812,613.56
U n ited S tates B on d s and N o t e s ..............................
1,063,100.00
M unicipal B on d s ............................................................
158,000.00
O ther B on d s and S e c u r itie s.......................................
149,950.00
F ed eral R eserve B ank S to c k .....................................
15,000.00
In ter est E arned, N o t C o lle c te d ..............................
29,063.76
Cash on H an d and D ue from B a n k s ..................... 5,468,357.13
$10,696,084.45
L IA B IL IT IE S
Capital S tock ........................................... ...................... $

250,000.00

Surplus ................................................................................
U n divided P rofits .........................................................
R eserv es for In ter est and T a x e s ............................
R eserve for C o n tin g e n c ie s.........................................
In terest C ollected , N o t E a r n e d ..............................

300,000.00
23,633.16
16,214.75
40,000.00
65,910.84

D e p o sits .............................................................................. 10,000,325.70
$10,696,084.45
M em ber Federal D eposit Insu ran ce Corporation

0

LIV ESTO CK
NATIONAL
BANK

S IO U X C IT Y , IO W A
Northwestern Banker

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

January 1942

The follow ing telegram w as sent to
P resid en t Roosevelt by H en ry W.
Koeneke, presid en t of the A m erican
B ankers Association: “Deeply con­
scious of th e im port of y o u r historic
m essage to w hich I have ju st listened,
on behalf of the A m erican B ankers
A ssociation I pledge to you and to the
people of th e U nited States th e com­
plete su p p o rt of th e n atio n ’s ban k s.”

Collect Christmas Savings
The D uluth Clearing House Associa­
tion banks announce th a t some 5,000
citizens of D uluth collected m ore th an
$150,000 in savings th ro u g h th e C h rist­
m as Club plan operated by th e asso­
ciation.
A ccording to th e association, this
rep resen ts a considerable increase over
last year in both deposits and deposi­
tors.

Banker Offers Prize
A. E. Eddy, cashier of th e F arm ers
& M erchants State B ank of H inckley,
last m onth offered a $15 trip to F arm
and Home W eek to th e farm er in the
H inckley com m unity g etting th e most
F a rm B ureau m em berships by the 10th
of Jan u ary .

Goes to Alexandria
R oland R. Rupp, bookkeeper at the
C itizens State B ank of W estbrook, has
accepted a position as a teller in the
F a rm e rs N ational B ank at A lexandria.

Walk Backwards
“D arn it, I ’m sheeing shpotsh in
fro n t of m y eyesh! W hat shall I do,
pal, w h at shall I do?”
“T hash eashy. T u rn around and
look th e o th er way!”

41

Schirber Leaves Mobridge

SOUTH
D A K O TA
NEWS
L. T. M ORRIS
President
W atertown

Bank Debits Gain
South D akota b an k debits, an indi­
cator of business activ ity and cash re ­
sources of th e buy in g public, m ade th e
larg est p ercentage gain over 1940 of
any sta te ’s in th e N in th F ed eral R e­
serve D istrict, th e M inneapolis R e­
serve B an k ’s re p o rt show ed recently.
South D akota debits of $555,112,000
for th e first eleven m onths of 1941
w ere 21 p er cent g re a te r th a n last
y e a r’s totals. N ovem ber debits w ere
23 p er cent g re a te r th a n N ovem ber,
1940. F o r th e d istric t as a w hole th e
gain w as 14 p er cent for th e eleven
m onths and 23 p e r cent for N ovem ber.
S tate gains for th e eleven m onths
w ere: M ichigan, M innesota and M on­
tana, 13 p er cent; N orth D akota and
W isconsin, 19 p er cent; South Dakota,
21 p er cent.

Goes to Huron
Otto H aeder took over d uties last
m onth as th e new ju n io r salesm an in
th e N ational F a rm Loan A ssociation
office in H uron, assistin g Roy J. Holdridge in th e sale of F ed eral L and B ank
farm s. He w as tra n sfe rre d to H u ro n
from a sim ilar position in Miller.

Bank Improvements
Completed
W. E. Stevens, p resid en t of th e Sioux
F alls office of th e N ational B ank of
South Dakota, announces th e com ple­
tion of th e ir extensive rem odeling p ro ­
gram in th e bank.

25th Anniversary Celebrated
L a st m o n th th e N o rth w est S ecurity
N ational B ank of G regory held open
house to com m em orate th e 25th a n n i­
v e rsa ry of th e bank, as w ell as th e
com pletion of in te rio r im provem ents.
C igars w ere passed out to th e m en,
and roses to th e ladies, and souvenirs
to all.
D uring its 25 years, H. E. McKee,
p resid en t of th e bank, has been a t its
head. E ig h t m en and five w om en help

GEORGE M. STARRING
Secretary-Treasurer
Huron

him to carry on its large and everincreasing business.

Surplus Accounts Increased
P resid en t R. M. W atson of th e N o rth ­
w est Security N ational B ank of Sioux
F alls announced at th e recen t m eeting
of th e board of directors of th e bank,
th a t th e su rp lu s accounts of th e bank
h ad been increased from $400,000 to
$500,000, giving th e b an k a capital
stru c tu re of $500,000 in com m on stock
and $500,000 in surplus, and $111,287.02
in undivided profits and reserves.
A ccording to Mr. W atson, th is is the
only b ank in eith er South or N orth
D akota w ith a capital and su rp lu s of
$

1, 000 , 000 .

A dopt "P A Y C " Plan
T he F irs t N ational B ank of the
B lack Hills, H ot Springs, announces a
new checking account service called
th e “PAYC” Pay-as-You-Check Plan.
It is a new service designed for those
w ho desire th e convenience of a check­
ing account w ith o u t m aintaing a m ini­
m um balance, th e only req u irem en t be­
ing a deposit sufficient to cover checks
w ritten. T here are no m onthly service
fees or activ ity charges on these ac­
counts.

Elected Trust Officer
At a recen t m eeting of th e board of
directors of th e F irst N ational B ank
and T ru st Com pany in Sioux Falls,
R. A. P ankow w as elected to th e posi­
tion of tru s t officer, w hich position w as
form erly held by B. H. ReQua, now
deceased. Pankow has been associated
w ith th e bank for th e p ast 28 years
and held th e position as assistan t tru s t
officer since 1933.

To Speak at Sioux Falls
Carl Odegard, m anager of th e Madi­
son branch of th e Security N ational
B ank, w ill speak F e b ru a ry 16th before
th e Sioux Falls Cham ber of Commerce
on “Chem ical Use of A griculture P ro d ­
ucts in In d u stry .”

P. J. Schirber, vice p resid ep t and di­
recto r of th e F irst N ational B ank of
A berdeen and m anager of th e Mo­
bridge b ran ch of th e F irs t N ational
Bank, has left for Jam estow n, N orth
Dakota, w here he w ill succeed Roy
D elaney as p resid en t of th e Jam es
R iver N ational Bank. Mr. D elaney has
been tra n sfe rre d to the A lbert Lea,
M innesota, bank.
Mr. S chirber has resided in M obridge
for the p ast seven years and before go­
ing th ere w as th e presid en t of the
Glencross Bank, and still retain s his
office as presid en t of th e Dewey C ounty
B ank of Tim ber Lake.
George Goodell, a ssistan t m anager,
w ill be in charge of th e F irs t N ational
B ank of M obridge u n til th e election of
th e board of directors w hen a p erm a­
n en t successor w ill be nam ed.

Celebrates 35th Anniversary
The Buffalo Gap office of th e S outh­
ern H ills B ank celebrated its 35th an ­
n iv ersary last m onth. The bank, form ­
erly know n as th e Buffalo Gap State
Bank, has never closed its doors, ex­
cept for th e b rief tim e necessary d u r­
ing th e b ank holiday.
In 1939 th e ban k becam e a b ranch
of th e S outhern H ills B ank of Edgem ont.
P resen t officers are: W. H. Highly,
president; T. L. Sepala, executive vice
p resid en t and cashier, and B. W. K eat­
ing, vice presid en t and m anager of th e
Buffalo Gap office.

Observes Anniversary
T he F arm ers State B ank of Lyons
recen tly observed th e a n n iv ersary of
35 y ears of continuous service to its
com m unity.
P atro n s w ere invited to visit the
b ank and have a light lunch.
Officers of th e b ank are: Ole O. Stordahl, president; L ars Stordahl, vice
president, and A. C. Lem m e, cashier.

To Complete Liquidation
C. M. K ranz, secretary and tre a su re r
of th e board of tru stees in charge of
liquidation of th e Peoples Savings
B ank of W atertow n announced recen t­
ly a sixth dividend, am ounting to 5
p er cent, is to be paid to th e creditors
of the tru st.
Mr. K ranz stated th a t th e last divi­
dend w as declared in 1939 and th a t th e
board of tru stees plan to finish liqui­
dation in 1942.

Unit Banks Meet
Vice p residents of u n it banks of the
F irs t N ational B ank of th e Black Hills
Northwestern Banker


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

January 1942

42

•

S OU TH

•
gath ered in R apid City last m onth for
a business session.
Vice p resid en ts a tten d in g included
C arleton Gorder, Deadwood; G. H. McG arrough, Sturgis; M ason Tyler, Lead;
W alter Voigt, H ot Springs; W alter
Dickey, Spearfish; D. J. Hill, Newell,
and D eW itt M alvin, Belle F ourche.
A tten d in g from th e R apid City office
w ere R obert E. Driscoll, C. C. A n d er­
son and Noel K lar.

Confer at Lead
R. E. Driscoll and C. C. A nderson of
R apid City w ere in Lead recen tly con­
fe rrin g w ith officers of th e F irs t N a­
tional B ank of th e B lack Hills.

D A K O T A

NEWS

North Dakota

News
Minot Makes Good Record
M inot’s b ank debits reached $7,379,000 in N ovem ber, a gain of 35 p er cent
over th e sam e m onth in 1940, a re p o rt
of th e F ed eral R eserve Bank, M inne­
apolis, show ed today. L ast year, No­
vem ber b an k debits h ere am ounted to
$5,465,000.
In th e first 11 m onths of 1941, b ank

THE NORTHERN TRUST COMPANY
C H IC A G O

•

debits in th e Magic City totaled $61,019,000—an increase of 29 p er cent over
th e $47,135,000 aggregate for th e co rre­
sponding period a year ago.
T his com pares w ith a N orth D akota
average gain in N ovem ber of 29 per
cent over a y ear ago, and a 19 p er cent
increase for th e 11-month period.
C om parative figures for o th er cities
in th e state include:
N ovem ber
1940
1941
B ism arck . . . . $10,638,000 $12,867,000
Devils L ake . . . 1,650,000
2,189,000
D ickinson . . . . . 1,673,000 2,657,000
F argo ............ . . 25,974,000 31,706,000
G rafton ........ . . 1,526,000
2,352,000
G rand F o rk s . . 6,205,000
7,321,000
Jam esto w n . . . . 1,887,000
2,365,000
L isbon ..........
324,000
530,000
M andan .......... . . 1,016,000
1,550,000
M inot .............. . . 5,465,000
7,379,000
V alley City . . . . . 1,226,000
2,227,000
W ahpeton
. . . 1,206,000
1,579,000
W illis to n ........ . . 2,002,000
3,543,000
$60,792,000 $78,265,000

S ta te m e n t o f C o n d itio n

Named Defense Bond Head

A t the close o f business, D ecem ber 31,1 9 4 1

RESOURCES
L o a n s a n d D is c o u n t s ............................................................$ 52,200,376.95
U . S . G o v e r n m e n t S e c u r it ie s ............................................ 136,607,933.57
( 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 i e s , a s r e q u i r e d b y l a iv )

O th e r R o n d s a n d S e c u r it ie s ............................................... 107,669,321.22
(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 ed er a l R e se rv e B a n k S t o c k ..............................................

270,000.00

R a n k P r e m is e s ............................................................................

1,400,000.00

C u s to m e r s ’ L ia b ility , A c c o u n t L e tte r s o f C r ed it
a n d A c c e p t a n c e s ...................................................................

450,775.32

O th e r R e s o u r c e s .......................................................................

506,676.80

C a sh a n d D u e fr o m R a n k s ................................................. 148,576,351.56
T O T A L ............................................................................................ $447,681,435.42

LIABILITIES
C a p ita l S t o c k .............................................................................. $

3,000,000.00

S u r p lu s F u n d ............................................................................

6,000,000.00

U n d iv id e d P r o fits .....................................................................

5,278,745.05

R eserve fo r T axes, I n t e r e s t , e t c .......................................

11,401,405.62

D iv id e n d P a y a b le J a n u a r y 2, 1942.................................

135,000.00

L e tte 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 ..

503,453.07

O th e r L ia b ilit ie s .......................................................................

100,838.31

R. R. W olfer of Jam estow n, w idely
know n b an k er of th a t vicinity, has
been nam ed state ad m in istrato r of th e
U nited States Defense Savings p ro ­
gram for N orth D akota, it w as an ­
nounced recen tly by E a rl T. Ross of
W ashington, D. C., field rep resen tativ e
for th e tre a su ry departm ent.
L eroy Pease of W ahpeton w ill be
dep u ty state ad m in istrato r, Ross said.
A state office has been opened in
Jam estow n and a com m ittee of prom ­
in en t citizens th ro u g h o u t th e sta te w ill
be nam ed to d irect a p rogram of edu­
cation and publicity to arouse in te re st
in th e sale of defense bonds and
stam ps.
“T he ap pointm ents of Mr. W olfer
and Mr. Pease w ere m ade upon th e
recom m endations of m any of N orth
D akota’s leading citizens,” Ross stated,
“and th e ir appointm ents will, I am
sure, m eet w ith statew ide approval.”

Independent Bankers Meet
N o rth D akota independent ban k ers
m et a t Jam estow n recen tly w ith J. I.
Hegge of Hillsboro, p resid en t of th e
group, presiding. Also a tten d in g w as
C. C. W attam of Fargo, secretary of
the S tate B ankers Association.

D e p o s its :

Asleep

D e m a n d .................................................$340,682,069.61
T i m e .......................................................

80,579,923.76

421,261.993.37

T O T A L ............................................................................................. $447,681,435.42
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n

Northwestern Banker

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

January 1942

“Good m orning, Madam, I ’m from
th e gas com pany.
I u n d erstan d
th e re ’s som ething in th e house th a t
w on’t w ork.”
“Yes, h e ’s u p sta irs.”

43

Leaves Jamestown

NORTH
D A K O TA
NEWS

C. C. WATT AM
S ecreta ry
F a rg o

J. I . H E G G E
P r e s id e n t
H illsb oro

A M illion a Day In

1 9 4 1

Business Is G ood In North Dakota
ORTH DAKOTANS produced n e a r­
ly one m illion dollars a day in
a g ric u ltu ra l w ealth d u rin g 1941, ac­
cording to th e 17th an n u al economic
rev iew of th e G reater N orth D akota
A ssociation.
T he re p o rt show s 1941 b ro u g h t one
of th e g reat crops in th e h isto ry of
th e sta te long know n as th e bread
b ask et of th e w orld. P erh ap s th e state
has produced its g reatest yield p er
acre, th e cash value of w hich, includ­
ing an estim ated $22,224,000 in benefit
paym ents, w ill reach $245,163,280.
L ivestock, m ain tain in g th e steady
volum e in crease of th e p ast five y ears
and selling a t slig h tly h ig h er prices,
according to th e GNDA survey, boosts
th e w ealth to tal by $118,413,697, w hich
am o u n t added to th e g rain figure
b rin g s th e g ran d to tal to $363,576,977,
or n e a rly a m illion dollars for each of
th e 365 days.
L ast y e a r’s to tal is 50 p er cent h ig h ­
er th a n 1940 to tal farm incom e of
$235,759,340.
Hogs, due to increased production
and im proved prices, m ore th a n dou­
bled th e incom e from th a t source th e
p revious year, and all classes of live­
stock show ed no rm al or stro n g gains.
A m azing is th e fact th a t even w ith
reduced AAA acreages and u n fav o r­
able w e a th e r d u rin g th e h a rv e st sea­
son N o rth D akota produced 146,198,000
bush els of w h eat and du ru m , valued
at $136,741,360, a gain of m ore th a n
$66,000',000 over 1940. Oats and b arley
v alues m ore th a n doubled.
O utstanding in th e s ta te ’s econom y
is th e tre n d to w ard farm ow nership.
D u rin g 1940, 7,000 bou g h t farm hom es
in th e state. D uring 1941, 9,000 m ore
b o u g h t hom es of th e ir own.
“D uring th e first 11 m onths of 1941
th e F ed eral L and B ank of St. P au l and
th e F ed eral F a rm M ortgage C orpora­
tion m ade 2,382 sales in N o rth D akota,”

N

says Vice P resid en t W. R. F ankhanel.
Up to D ecem ber 15th th e B ank of
N orth D akota sold 1,107 farm s, and 153
of these sales w ere for cash. Sales
should “h it th e 1,200 m ark by Ja n u a ry
1st,” said M anager F. A. Vogel. “The
sales show about a th ird increase over
th e sales in 1940, as w ell as an increase
in th e price per acre.”
“In addition,” says Mr. Vogel, “I find
86 loans have been paid long before
m a tu rity in th e total am ount of $136,442, w hich show s a health y condition
as far as re tu rn s from farm s are con­
cerned.”
B usiness is good in N orth Dakota.
P erh ap s the best index, according to
T ax Com m issioner Jo h n Gray, is the
sales tax collections to Decem ber 22nd,
to taling $3,877,717.65. W hile incom ­
plete for th e year, and not including
C h ristm as business, it w as 18 p er cent
above th e 1940 to tal and 34 p er cent
above th e total business of 1939. As
to incom e tax, th e 1940 total of $683,757.32 w as 61 p er cent over th e 1938
figure. The 1941 taxes w ill be collected
d u rin g th e calendar year of 1942 and
indications are th a t th ey w ill be the
largest in history, w ell over $700,000,
G ray says.

Complete Bank Remodeling
E x p e rt w orkm en in th e ir various
lines have ju st com pleted the w ork of
“stream lin in g ” th e in terio r of th e F irst
State B ank of New R ockford and all
th e old fixtures, grills and o th er g inger­
bread adornm ents w hich w ere the
style aw ay back along about 1898 have
been th ro w n in th e discard and m ar­
ble tops in sim ple designs have tak en
th e ir place. New fluorescent lights
th ro u g h o u t th e en tire establishm ent
th row s a m ellow light upon a greatly
im proved interior, and these lights also
reflect upon each desk from hidden
receptacles.

R. W. Delaney, p resid en t of th e
Jam es R iver N ational B ank of Jam es­
tow n, has resigned th a t position, ef­
fective Ja n u a ry 1st, to accept th e p resi­
dency of th e F irs t N ational B ank of
A lbert Lea, M innesota, w hich, like the
Jam es R iver, is affiliated w ith N o rth ­
w est B ancorporation.
Mr. Delaney has been head of th e in ­
stitu tio n here since Septem ber 1, 1932,
m oving to Jam estow n from M inneap­
olis at th a t tim e.
P. J. Schirber, at p resen t vice p resi­
den t and director of th e F irs t N ational
B ank of A berdeen, S. D., residing at
Mobridge, S. D., a m anager of th e
branch b ank there, term in ated those
connections and succeeded Mr. De­
laney Ja n u a ry 1.
Mr. S hirber has been active in th e
banking and civic life of South D akota
since 1920 w hen he organized the Glencross S tate Bank, w hich is directly
operated by his tw o brothers.

Bank Debits Soar
D ollar volum e of business in G rafton
and o th er N orth D akota cities in th e
N inth F ed eral R eserve D istrict, borne
upw ard on th e im petus fu rn ish ed by
large farm production and rising
prices, soared to new h eights d uring
Novem ber, according to figures from
the M inneapolis F ed eral R eserve Bank.
B ank debits for G rafton in N ovem ­
ber w ere $2,352,000, com pared w ith $1,526,000 in N ovem ber of last year, a
gain of 54 per cent.
All of th e cities of th e n o rth w est are
experiencing a boom in dollar volum e
business, although n ot all have a t­
tained as great a percentage increase
over N ovem ber a year ago as has G raf­
ton. F arg o ’s increase, for instance,
was 22 per cent, and th a t of G rand
F o rk s w as 18 per cent. T hey operate
on a larg er volum e basis, of course.

Bankers Pledge Support
Am ong telegram s assu rin g A lbert
W. H aw kes of W ashington, D. C., p res­
ident of th e C ham ber of Commerce of
the U nited States, of business w illing­
ness to cooperate in th e all-out-for-victo ry program , w ere those from the
Fargo Clearing House, th e N o rth Da­
kota B ankers A ssociation, headed by
J. I. Hegge of H illsboro, and F. A.
Irish, d istrict director of th e U nited
States Cham ber.

Close Bank Station
The F irs t S tate B ank of B uxton has
received perm ission from th e State
B anking Board to discontinue its pay­
ing and receiving statio n at Reynolds,
R. S. See, d ep u ty state exam iner, said.
Northwestern Banker


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Federal Reserve Bank of St. Louis

January 1942

44

T he United S tates National Bank
of OMAHA

STATEMENT, DECEMBER 31, 1941
RESOURCES
CASH AND DUE FROM BANKS.............
U. S. GOVERNMENT OBLIGATIONS...............
MUNICIPAL BONDS .......
OTHER BONDS ..............................................

$13,912,845.41

15,071,761.16

LOANS AND DISCOUNTS.....................
BANK PREMISES ......................................
STOCK IN FEDERAL RESERVE BANK...
OTHER ASSETS ............................

7.434.382.99
750,000.00
63,000.00
188,139.66
$37,420,129.22

LIABILITIES
DEPOSITS— COMMERCIAL AND INDIVIDUAL.
BANKS ...................................................
TIME ......................................................
PUBLIC FUNDS ..................................

$18,242,707.49
9,766,495.06
3,208,860.95
3,527,257.54

CAPITAL STOCK—COMMON
SURPLUS AND PROFITS..........
RESERVES .................................
OTHER LIABILITIES .................

$34,745,321.04

1. 100, 000.00

1.056.310.32
300,944.95
......................

2,457.255.27
217.552.91
$37,420,129.22

Directors
W . B. T. BELT, P r esid en t
N a tio n a l S ecu rity In su ra n ce C o m p a n y

EDGAR M. M ORSM AN, JR., A tto rn ey
ROBERT P. M ORSMAN

LINN P. CAMPBELL. P r esid en t
B yron R eed C o m p a n y , Inc.

ROY PAGE, V ice P r esid en t a n d G e n e r a l M a n a g e r
N eb rask a P ow er C om pany

EDW IN A . DUFF
EDWARD FLYNN, E x ec u tiv e V ice P r esid en t
C h ic a g o , B u rlin gton
Q u in c y R a ilr o a d Co.

&

JOHN W . HUGHES, P r esid en t
G u a r a n te e M u tu al Life C o m p a n y
GLENN E. JENNINGS, P r esid en t
W righ t
W ilh e lm y C o m p a n y

&

HENRY W . PIERPONT, P r esid en t
S ta n d a rd O il C o m p a n y of N e b r a s k a
ABRAHAM L. REED, C h a irm a n of th e B oard
B yron R eed C o m p a n y , Inc.
HARRY F. REED, P r esid en t
L. G. D oup C o m p a n y
ELLSWORTH MOSER, E x ec u tiv e V ice P r esid en t

ARTHUR A . LOW M AN, P r esid en t
N o rth w e ster n B ell T elep h o n e C o m p a n y

HERBERT M. BUSHNELL, P r esid en t

C apital, Surplus and R eserve, $2,400,000.00

Eighty-Five Years of
Sound Banking Service
Northwestern Banker January 19Y2

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Federal Reserve Bank of St. Louis

MEMBER OF FEDERAL DEPOSIT INSURANCE CORPORATION

45

Largest Total Since 1932

NEBRASKA
NEWS
O. A . R IL E Y

WM. B . H U G H E S
S ecreta ry
O m aha

P r e s id e n t

Bank Clearings High
B ank clearings of 1941 a t th e two
H astin g s b anks leaped into th e $8,000,000 b rack et a fte r a steady u p w ard
clim b since 1934, w h en b an k clearings
w ere dow n in th e three-m illion dollar
bracket.
Decem ber, 1941, clearings a l o n e
tu rn e d sh arp ly u p w ard to a to tal of
$816,030.32, a figure exceeding total
clearings of any one preceding m onth
of th e year. T his D ecem ber record
w as su rp assed only once by the m o n th ­
ly record set back in A ugust, 1937,
w hen clearings jum ped to an u n ex ­
pected to tal of $883,561.20.
The 1941 clearings totaled an even
$8,242,198.28, as con trasted w ith $3,493,698.35 in 1934, $5,424,036.13 in 1935, $6,359,045.87 in 1936, $7,016,369.81 in 1937,
$6,859,233.66 in 1938, and $7,184,870.53 in
1939.

Pioneer Banker Dies
Jam es O. B aker, one of w e ste rn Ne­
b ra sk a ’s m ost p ro m in en t m en and a
re sid e n t of M itchell since 1901, died
th e re last m onth.
Mr. B aker w en t to w estern N ebraska
follow ing the ad v en t of th e B u rlington
railroad, and established a n u m b er of
b anks in association w ith Jo h n W.
W ehn. He re tire d from th e b an k in g
business in 1903, b u t has continued to
be active in th e financial circles in th a t
section of th e country.

Accepts Bank Position
N orm an McKeag of W ood R iver,
w ho has been d ep u ty county tre a su re r
of Hall county since F eb ru ary , 1937,
has resigned his office to accept a posi­
tion in th e F irs t N ational B ank in
G rand Island, effective th e first of th is
year.

perodical and reg u lar saving,” Otto
Schneider, cashier, s a i d recently.
“M any people save for fuel bills, in ­
su rance prem ium s and m any other
‘o v erhead’ expenses b e y o n d m ore
C hristm as spending. It helps them
m eet e x trao rd in ary spending. My opin­
ion is, too, th a t above defense stam ps
and bond buying th e savings plan will
help people m eet th e ir 1942 taxes,
w hich w ill be very heavy.”

Former Banker Dead
J. M. W right, 75, form erly cashier of
th e F a rm e rs State B ank of Stella, died
last m onth in a hospital at Hollywood,
C alifornia.
Mr. W rig h t also resided in A uburn
at one tim e, w here he w as employed
as county clerk and w as also associated
w ith th e banks there.
Teacher: “Now, Johnny, if I take
tw o from five w h at is the difference?”
Johnny: “T h a t’s w h at I say, W ho
th e hell cares.”

New Bank Employe
A nnouncem ent th a t A lden Jones had
been added to th e staff of th e B ank of
M adison w as m ade last m onth by G. C.
B enning, cashier.
Mr. Jones has had considerable b an k ­
ing experience and at one tim e was
em ployed at th e F irs t N ational B ank
of Madison.
J. J. DeLay, w ho w as form erly affili­
ated w ith th e bank, w ill be employed
by th e F arm ers Savings B ank of Remsen, Iowa, effective Ja n u a ry 2nd.

Former Banker Passes Away
Mr. F ra n k Clough, 77, of Allen, died
at his hom e th ere last m onth. He had
been in failing health for some tim e
and had been in bed for the p ast m onth
w ith a th ro a t ailm ent.
Mr. Clough w as p resid en t of the
Allen b ank for some years.

BRIEF N E B R A S K A N E W S
By Paul W . Schooll, A ssociate Editor
H IS y ear th e F arm ers S tate B ank
of P ickrell w ill observe its 38th
an n iv ersary . It is th e oldest state
bank in Gage county, and has been
u n d er th e sam e m anagem ent since its
organization in 1904.
F. L. P oth ast, cashier, w ho has been
th e executive officer in charge of the
b ank since it opened, announces th a t
th e ir capital stock has grow n steadily
from $5,000 in 1904 to $40,000 in 1941.
D.
R eil, a ssistan t cashier, has also
given m any y ears of continuous serv ­
ice to th e F arm ers State Bank, as he
began th ere in 1913.

T

Continue Christmas Club
A lthough b an k C hristm as clubs have
been tem p o rarily abandoned by some
city banks, th e N ebraska City N ational
B ank of N ebraska City has m ade no
such decision.
“W e find th a t th e club prom otes

A total of $576,699.44 in F rem o n t bank
clearings for December, largest m onth
of th e past year, bro u g h t th e 1941 total
to $5,835,286.21, th e largest total for
any year since 1932, w hen the figure
was $7,986,315.88.
The 1941 figure com pared w ith re ­
cent years as follows: 1940, $5,250,424.44; 1939,$5,073,802.07; 1938, $4,781,101.84; 1937,$5,520,140.44; 1936, $5,780,849.13; 1935,$5,105,867.24; 1934, $4,415,719.89; 1933,$3,034,347.73; 1932, $7,986,315.88.
The D ecem ber total of $576,699.44
com pared w ith $491,491.82 for the same
m onth a year ago.

The S tate B ank of Jan sen has re ­
cently com pleted a n um ber of im ­
p rovem ents to th e in terio r of the
bank, including new counter tops, new
floor coverings, new ceiling and a new
fluorescent lighting system .

The officers of th e b ank are J. M.
N ider, president, w ho has served in
th is capacity since 1928; and H. T. Fast,
w ho has been cashier for the past
23 years.
E. E. H edgcock, cashier of the Se­
cu rity S tate B ank of E dgar, announces
th a t P aul S tew art has recently ac­
cepted th e position of chief book­
keeper in th e E d g ar bank.
Mr. S tew art, w ho has had banking
experience since 1935, attended the
U niversity at Lincoln, is a m em ber
of th e Lions Local Order, and secre­
ta ry of the M asonic Order.

E v ery T uesday a public live stock
auction sale is held in th e sm all tow n
of D eshler, and frequently, in spite of
th e sm all size of th e tow n, these sales
som etim es ru n into big money.
Northwestern Banker


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Federal Reserve Bank of St. Louis

January 19V2

46

•
P. E . Ude, cashier of th e N ebraska
Security B ank of D eshler for m any
years, announces th a t on th e first of
D ecem ber over $20,000 w o rth of cattle
and hogs w ere sold by Col. G. E. W a r­
ing, auctioneer, th is being th e largest
one day sale in th e p ast several years.
The sale, w hich w as e n tire ly on th e
cash basis, w as handled th ro u g h the
N ebraska S ecurity Bank.
Charles H. Boedeker, cashier of th e
M urray S tate B ank since 1929, a n ­
nounces th a t th e b an k now h as a
capital stock of $20,000, a su rp lu s of
$20,000, and undivided profits of $1,-

N E B R A S K A

N E WS

153.55. D eposits of th e b an k now total
$402,700.23.
T he A rm istice Day celebration at
Lisco, w hich w as h ighly successful
and b ro u g h t m an y distinguished
g uests from far and wide, w as u n d er
th e able m anagem ent of H . B. Olson,
vice p resid en t of th e Lisco State Bank.

The McBrides of Blue Hill

•
leader, or a t least associated w ith,
every civic activity of th e city in w hich
he resides.
Mr. M cBride has served on th e vil­
lage board of Blue H ill since 1920, and
hav in g been elected m ayor in 1925, he
still holds th a t office. H e is tre a su re r
of th e local Red Cross chapter, county
ch airm an of th e N ebraska H ighw ay
Safety Council, a d ju ta n t of th e local
A m erican Legion Post for m any years,

E d g ar McBride, pictu red here w ith
his ch arm ing and handsom e fam ily, is
not only presid en t of th e Com m ercial
B ank of Blue Hill, N ebraska, but is a

BANK
T R U S T C O M PA N Y
F ou nded 1824

165 B road w ay, N e w York
C O N D E N S E D S T A T E M E N T O F C O N D IT IO N

At the close of business, December 3 1 , 1941
ASSETS
Cash and Due from Banks_______
.$377,335,459.90
U. S. G overnm ent O bligations,
Direct and Fully G uaranteed_____ 321,211 ,477.96
Bankers’ Acceptances and Call Loans 34,218 ,090.49
State and M unicipal Bonds___________ _ 79,636 ,147.00
O ther Bonds and Investm ents________ 120,904 ,973.58
Loans and D iscounts________________ 156,455 ,076.38
Banking H o u se s____________________ _
539. 243.85
O ther Real Estate___________________
4,995 921.87
Mortgages___________________________
1,533 644-46
Credits G ranted on Acceptances_______ _
1,762 294.70
O ther A ssets_______________________
3,136 ,043.59
$1.101,728,373.78
LIA BILITIES

C apital Stock.
$ 20,000,000.00
Surplus.
50,000,000.00
U ndivided Profits____
9,161,723.81 $79, 161,723.81
D ividend Payable January 2, 1942 _ _ _
900,000.00
Reserves, Taxes, Interest, etc_________
,988,016.24
Acceptances O utstanding $8,269,309.70
(less own acceptances
held in portfolio)
5,975,029.02
,294,280.68
O ther Liabilities____________________
274,489.02
Deposits (including Official and Certified
Checks Outstanding $26,783,252.80) 1,014,109,864.03
$1,101,728,373.78
U. S. Government Obligations and other securities carried at
$ 1 1 1 ,253,065.53 in the foregoing statement are deposited to
secure public funds and for other purposes required by law.

m em bers of th e state dem ocratic com­
m ittee and precinct chairm an, and vice
ch airm an of th e F o u rth C ongressional
D istrict of dem ocrats for N ebraska.
On th e side he is tre a su re r of th e F a rm ­
ers G rain & Stock Company, and tre a s­
u re r of the local telephone exchange.
The N ebraska B ankers A ssociation
is not forgotten by Mr. McBride. A t
th e m om ent he is chairm an of th e asso­
ciation executive council, and is a p ast
presid en t of Group F o u r of th e Asso­
ciation. One m ight say E dgar M cBride
is a busy m an, b u t w ith it all he m eans
ju s t w h at th is recen t statem en t of his
says, “W ar is hell—so le t’s raise a lot
of it w ith Jap an and th e Axis pow ers.”

Banker Dies in Crash
Otto Thoene, 53, n ativ e of G erm any,
and assistan t cashier of th e F irs t N a­
tional B ank of Utica, died last m onth
as th e re su lt of a collision betw een his
car and a tra in on th e o u tsk irts of th e
tow n. The accident occurred at dusk
and it is believed Thoen did not see
th e ex tra train . He is survived by his
w ife and son.

B ank H elp W a n te d
C h a rte r M em b e r N e w Y o r k C lea rin g H o u se A sso cia tio n
M em b e r F ederal Reserve System
M em b er Federal D eposit In su ra n ce C orporation

Northwestern Banker

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

January 19b2

M a n y a ttr a c tiv e p o s itio n s n o w o p en from
C h ica g o to P a c ific C o a st for p o s tin g m a c h in e
o p era to rs, s ten o g ra p h e rs, t e lle r s and a s s is t a n t
ca s h ie r s. C oun try bank e x p e r ie n c e p referred .
W r ite fo r a p p lic a tio n b lan k .
T H E C H A R L E S E . W A L T E R S CO.
P . O. B o x 1 3 1 3 , O m a h a , N e b r a s k a

47
of th e N ebraska d ep artm en t of th e
A m erican Legion, w ho is vice-presi­
den t of th e F irs t N ational B ank of
Omaha, spoke a t a dinner.
He said: “The dom estic crisis is
m ore dangerous th a n th e foreign,”
adding th a t “A m erica is A m erica only
as long as th e m echanics of priv ate
en terp rise and political and social
freedom obtain.”
A lfred O. Barker, vice-president of
the B ark er Company, Om aha real
estate holding com pany, w ho died in
Om aha recently, w as a t one tim e affil­
iated w ith th e old N ational B ank of
Commerce.

ITH one son in th e arm y, an o th er
in th e navy, R oy Jack H u ghes,
40, a g u ard a t th e U nited S tates N a­
tional B ank of Omaha, w as accepted
by th e n avy as a second-class p etty
officer in th e m ach in ist b ranch.
He passed th e physical te sts w ith
flying colors despite 11 y ears of w o rk
in M issouri lead m ines.

W

T he N eb rask a In v e stm e n t B a n k e rs’
A ssociation is sponsoring an essay con­
te st on th e subject, “The Role of th e
In v e stm e n t B an k er in th e D evelop­
m en t of A m erican In d u s try .” P rizes
w ill be $100, $50 and $25. C hairm an
of th e contest is E u gen e C. D insm ore
of Omaha.
A. C. P otter, p resid en t of B urns,
P o tte r & Co., O m aha in v estm en t firm,
is tak in g a leave of absence from th e
com pany to head th e com m ittee for
civilian em ergency perso n n el in W ash ­
ington.
He w ill have th e title of special a s­
sista n t to U n d ersecretary of W ar
R obert P. P atterso n . P o tte r an d P a t­
terso n w ere classm ates at U nion Col­
lege, Schenectady, N. Y.
The O m aha m a n ’s duties w ill be
chiefly in terv iew in g
and
placing
civilian executives em ployed by th e
go v ern m en t in defense activities.
The P o tte r fam ily w ill m ove to W ash ­
ington sh o rtly a fte r th e first of th e
y ear and rem ain th e re for “th e d u ra ­
tion.”
W alter W. H ead, O m aha b a n k e r and
civic leader p rio r to 1929, an d serving
his six teen th y e a r as p resid en t of th e
Boy Scouts of A m erica, cam e back to
Om aha recen tly on a trip th ro u g h
N ebraska to address a series of Scout
gatherings.
He is now p re sid e n t of th e G eneral
A m erican Life In su ran ce Company,
w ith h e a d q u a rte rs in St. Louis. Added

to his still innum erable activities are
tw o new posts—ch airm anship of th e
M issouri U nited Service O rganizations
and ch airm an of th e Soldiers’ Service
cen ter for St. Louis city and county.
The g o vernm ent m u st depend on
th e local ban k s th ro u g h o u t th e coun­
tr y for effective “freezing” of axis
funds, John W . P eh le, 32-year-old
special a ssistan t to S ecretary of th e
T re a su ry M orgenthau and son of Mr.
and Mrs. Otto P ehle of Omaha, said in
Om aha recently.
In charge of foreign funds control
for th e U nited States, P ehle spoke a t
a m eeting of Om aha and Lincoln b a n k ­
ers. W ith him w as A nsell F. L uxford
of th e tre a su ry d ep artm en t’s general
counsel’s office, form erly of Council
Bluffs. T he m eeting w as a rran g ed
by L. H. E arhart, m anaging director
of th e Om aha branch, F ed eral R eserve
B ank of K ansas City.
O m ahans w ho attended th e m eet­
ing w ere C. O. D arner, cashier, Omaha
N ational; J. F. M cD erm ott, vice-presi­
dent, and E m m ett G. Solom on, as­
sista n t tru s t officer, F irs t N ational;
E llsw o rth M oser, executive vice-presi­
den t U nited States N ational; A lvin E.
Johnson, presid en t L ivestock N a­
tional; W . A. S aw tell, presid en t Stock;
y ard s N ational; A. L. Coad, presid en t
P a c k e rs’ N ational; R obers H. H all,
vice-president N orth Side Bank; O. P.
Cordill, a ssistan t cashier F ed eral Re­
serve, and W . B. H u gh es, secretary
N ebraska B an k ers’ Association.
F ro m Lincoln were: M. C. W eil,
president, and Don Cozard, a ssistan t
cashier N ational B ank of Commerce,
and E. A. B ecker, vice-president Con­
tin e n tal N ational.
W hen O m aha’s T ribe of Yessir,
good w ill group of th e C ham ber of
Commerce, visited H oldrege, N ebraska,
recently, J. F. M cD erm ott, com m ander

M etropolitan U tilities d istrict direc­
tors in Om aha cleared th e w ay recen t­
ly for p aym ent in full D ecem ber 15th
of $2,668,000 in city w a te r bonds,
w iping out th e last ou tstan d in g bonds
of a $7,533,000 issue of 1911, to finance
purchase of th e city w a te r system .
D irectors authorized G eneral M an­
ager W alter S. B yrne to liquidate
sinking fund securities of th e w ater
d ep artm en t for m eeting th e bond m a­
tu rities and final in te re st coupons.
T ogether these to tal $2,723,040.
Jam es P. L ee, form er Om aha b an k er
and now vice-president of th e Omaha
& Council Bluffs S treet R ailw ay Com­
pany, has been nam ed a governor of
Ak-Sar-Ben to succeed U nion Pacific
P resid en t W illiam M. Jeffers, w ho
resigned because of freq u en t ab ­
sences from th e city. Mr. Lee has
been a m em ber of His M ajesty’s Coun­
cil of Ak-Sar-Ben for tw o years. The
announcem ent w as m ade a t a d inner
at th e B lackstone Hotel, given by th e
council for the governors and W . B.
M illard, Jr., vice p resid en t of th e
Omaha N ational Bank, w ho is th e new
Ak-Sar-Ben king. Mr. M illard w as
re-elected secretary -treasu rer of AkSar-Ben and re-elected a governor for
a four-year term , and H. M. B u sh n ell,
p resid en t of th e U nited States N a­
tional B ank of Omaha, w as re-elected
vice presid en t of the Ak-Sar-Ben
Bridge A ssociation, of w hich Mr. Mil­
lard is also secretary-treasurer.
W . D ale Clark, presid en t of th e
Om aha N ational Bank, has been
nam ed ch airm an of th e N ebraska
M ethodist debt-reduction com m ission.
The board m et for th e first tim e in
Om aha recently.
T he com m ission w as created to con­
duct a cam paign to raise $500,000
am ong M ethodist churches for red u c­
tion of debt on six N ebraska M ethodist
in stitu tio n s, including th re e hospitals,
a hom e for th e aged, N ebraska W es­
leyan U niversity, and th e M ethodist
S tudent H ouse a t Lincoln.

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1942

48
Mr. and Mrs. R ay R idge w ere hosts
to Miss E sth e r H und of St. Joseph,
M issouri, for th e T h anksgiving holi­
day. Mr. Ridge is vice p resid en t of th e
Om aha N ational Bank.

Sponsors Annual Corn Show

Succeeding D avid F. D avis, tru s t
officer of th e Om aha N ational Bank,
Dr. W illson B. M oody w as elected
presid en t of th e O m aha club recently.
M oorhead T ukey w as elected vice
president, T racy J. Peycke secretary,
and Jo h n M. D ouglas, in v estm en t
banker, tre a su re r. C harles D. Saun­
ders, vice p resid en t of th e F irs t N a­
tional Bank, w as am ong th e d irectors
elected for three-y ear term s. C. A.
A braham son and Mr. Davis are hold­
over directors.
E x tra C hristm as m oney w as jin g lin g
in th e pockets of th o u san d s of
O m ahans as a re su lt of C hristm as
bonuses, or back pay.
Back p ay from th e railroads as a
re su lt of th e recen t w age increase
w as estim ated to to tal $700,000 in
Om aha and Council Bluffs. Omaha
banks paid bonuses, as usual. M any
business firm s also d istrib u ted bonus
checks th is year, some resu m in g th e
custom for th e first tim e since th e
depression. Some of th e bonuses w ere
paid in defense bonds and stam ps.
T ra n sfe r of N ebraska assets of
T e rry C arpenter, Inc., including a re ­
finery at Scottsbluff, service stations
and o th er p roperties, to th e C onsum ­
ers Co-Operative A ssociation of N orth
K ansas City, M issouri, w as com pleted
recen tly a t th e Om aha B ank for Co-

"

The C entral N atio n al B ank, Columbus, N ebraska, held its annual Corn Show
last fall, w ith around 3,000 persons from Columbus and v ic in ity view ing the
exhibition. The above p ictu re was tak en in th e b an k lobby while the show
w as on. H ow ard Burdick and M. M. Taylor, cashier and p resid ent of the
bank, supervise th e ex h ib it activ ities.

O peratives, a division of th e farm
cred it adm inistration.
T he deal w ith C arpenter involved
abo u t $750,000, it w as reported.
L eader of th e N ebraska T ubercu­
losis A ssociation’s drive for sale of
C hristm as seals w as J. F. M cD erm ott,
vice p resid en t of th e F irs t N ational
Bank. State-wide goal w as $50,000.
W . D. H osford, Jr., special gifts
chairm an, raised th e association flag
over the F irs t N ational B ank building
in O m aha to officially open th e drive.

Persona/ Service "

W e invite yo u to consult u s for personal,
com plete banking service in Lincoln,
N ebraska's b u sy state capital

LINCOLN
Member Federal Deposit Insurance Corporation

4-H County Meeting
B ankers from B urt, W ashington,
Dodge and Sarpy counties held th e ir
q u arterly business m eeting at th e city
au ditorium in O akland recently, w ith
the F a rm e rs & M erchants N ational
B ank of Oakland as th e host. D inner
was served to about 35 m em bers of
the four-county association.
R ay Ridge, vice presid en t of th e
Omaha N ational Bank, spoke on freez­
ing of foreign funds. Jo h n L au ritzen
of th e N orth Side Bank, Omaha, gave
a ta lk on how th e ban k ers can stim u ­
late sales of defense bonds in th e ir
com m unities. E. J. Robins of F re ­
m ont, chairm an of th e state aero n a u ti­
cal com m ission, also spoke to th e
group. R. K. Hancock, p resid en t of th e
association, presided d u rin g th e p ro ­
gram .

Cashier in Sidney
D. W. Reynolds, who w as associated
w ith th e A m erican N ational B ank of
C reighton for th e past ten years, h as
accepted th e cashiership of The A m eri­
can N ational B ank of Sidney, and
m oved to th e new location w ith his
wife and tw o children. The Sidney in ­
stitu tio n has deposits of over $1,500,000, according to a recent statem ent.
A. J. Jorgenson is president.

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

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

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1942

49
w ork about six w eeks, b u t had been
in th e hospital th ree w eeks preceding
his death. F o r tw o y ears a fte r 1927,
Mr. Cozad w as w ith th e S ecurity F irs t
N ational B ank in Los Angeles, and
in 1929 cam e to th e N ational B ank of
Com m erce as a bookkeeper. In th e
in terv en in g period he h ad advanced
from th a t position th ro u g h teller to
his p re se n t position. In 1940, he w as
secretary of th e L incoln Clearing
H ouse Association.

INCOLN’S four b an k s carry in g
C h ristm as savings club accounts
rec e n tly m ailed checks to th e ir de­
positors. E ach re p o rts an increase in
deposits an d n u m b er of accounts over
a y e a r ago, one hav in g announced a
gain ap p ro x im atin g 25 p e r cen t in
each.
The to tal d istrib u tio n th is y e a r
am o u n ted to $184,267 to 3,873 de­
positors.

L

H olding a jo in t discussion, L incoln
bankers and N eb rask a A ssociation of
Certified P ublic A ccountants m et in
an n u a l d in n e r session a t th e Cornh u sk e r hotel.
E llsw o rth F u n k , Lincoln, w as dis­
cussion ch airm an, w ith th e m eeting
presid ed over by H a rry Judd, Omaha.
The re a p p o in tm e n t of P aul F. Good
of Lincoln, N ebraska, as ch airm an of
th e board of directors of th e F ed eral
H om e L oan B ank of Topeka, K ansas,
w as annou n ced by th e F ed eral Hom e
L oan B ank board.
R oss E. T hom pson of T ulsa w as re ­
app o in ted vice ch airm an. T he term s
of b o th are for th e calendar y e a r end­
ing D ecem ber 31, 1942.
The T opeka b an k services Colorado,
K ansas, N eb rask a and Oklahom a.
W illiam Gray, fo rm er m em ber of
th e C ontinental N ational B ank staff,
has been selected as executive vice
p re sid e n t of th e City N ational B ank
a t D uluth, M innesota.
Mr. G ray w as associated w ith the
C o n tin en tal B ank for several y ears be­
fore leaving about seven y ears ago to
tak e a vice p residency w ith th e F irs t
N ational B ank of A lbert Lea, M inne­
sota. L a te r he w as elevated to the
presidency of th e b an k there. He as­
sum ed his D uluth post J a n u a ry 2.

a single state b ank failure, records in
th e state b anking d ep artm en t showed.
M eanw hile, H arold Johnson, a tto r­
ney for th e d ep artm en t announced th e
com pletion of th e B ank of Howe re ­
ceivership in N em aha county.
T he b an k closed in 1934 and since
th a t tim e depositors have received
$12,318 or 85 per cent of th e ir claims.
The b anking d ep artm en t now has b u t
eig h t receiverships still in operation
out of a peak load of some 400 in th e
early 1930’s. In addition to those
handled by th e d ep artm ent, how ever,
th e re are several still unclosed in th e
h ands of E. H. L u ik art, judicial re ­
ceiver.
D onald S tephanson Cozad, 35, as­
sista n t cashier of th e N ational B ank
of Commerce, died a t a Lincoln hos­
pital recently follow ing an operation
last June. He w as able to re tu rn to

W

e jo in

L incoln bank clearings for 1941
totaled $154,583,265, th e larg est figure
since 1930. It rep resen ts a gain of
m ore th a n six m illions over th e 1940
total of $148,365,266.
C learings for Decem ber w ere $14,533,568 w hich w as n early tw o m illion
m ore th a n th e N ovem ber to tal of $12,575,492 an d w as above th e December,
1940, clearings of $13,095,549.

Goes to Lincoln
Miss S hirley Green, w ho has been
em ployed at th e M inden E xchange N a­
tional B ank th e p ast th ree years, left
recen tly for Lincoln w here she w ill be
em ployed a t th e F irs t N ational Bank.
Miss Viola H ansen w ill replace Miss
G reen a t Minden.

Christmas Club Checks
F ive h u n d red th re e resid en ts of Fairb u ry received C hristm as Club checks
from th e F irs t N ational B ank and th e
F a irb u ry S tate B ank last m onth, to ­
talin g $22,751. T his is an increase over
last year, w hen 495 checks totaling
about $20,500 w ere mailed.

t o g e t h e r

t c

J a

y

..

. . . . t h a n k s to our many good friends and cus­
tomers for their goodwill and patronage during
the past year. We are deeply appreciative.
May 1942 bring to all of you a bountiful meas­
ure of health and happiness.
E d P eck
H o w a rd M ille r
A u stin K in g

B e n M c C a rtn e y
W illis J o h n so n
B o b In n ess

R e p r e s e n t i n g th e

UNITED STATES CHECK BOOK COMPANY
O MA H A

F o r th e first tim e in 20 years, N e ­
b rask a is com pleting a y e a r w ith o u t
N orthw estern B anker

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Federal Reserve Bank of St. Louis

January 19^2

50

LIVE STOCK N A T IO N A L BANK

.'.

OMAHA

S ta te m e n t o f C o n d itio n D e c e m b e r 31, 1941

LIABILITIES

R ESO U R C ES
Loans an d D iscounts.............................. $11,652,945.50

C apital Stock (Common)....................... $

500,000.00

Bonds and Other Securities.................

1,333.38

Surplus (Earned).......................................

500,000.00

Stock in Federal R eserve Bank..........

30,000.00

U ndivided Profits.....................................

355,084.04

Banking H ouse and Fixtures..............

1.00

R eserve for T axes, Interest, Etc...........

166,859.06

Other R eal Estate.....................................

N one

U nearned D iscount..................................

8,209.85

D ividend P a y a b le January 2,1942....

7,500.00

U. S. G ov. S ecurities......$2,764,912.07
(L ess T h an M arket V a lu e)

C ash, Sight E xchange

Deposits:
Banks ...........................$9,650,682.60

a n d Due From Federal
R eserve Bank.............. $5,897,180.51

Other D eposits........... $9,158,036.91 18,808,719.51

8,662,092.58

$20,346,372.46

$20,346,372.46

CAPITAL, SU R PL U S &

LOANS &
D E PO SIT S

DISCOUNTS

U N D IV ID ED PR O FIT S
$ 614,098.26

-

-

-

$ 1,566,262.23

-

$ 4,910,106.01

-

804,063.52

-

-

-

5,582,387.78

-

12,937,522.07

-

1,355,084.04

-

-

-

11,652,945.50

-

18,808,719.51

D ecem ber 31, 1933

-

D ecem ber 31, 1937
D ecem ber 31, 1941

-

Our progress in the past has been due in a very large measure
to the friendship and confidence of those we have served.
We desire to convey to all our sincere thanks and also express
the wish—that the new year may bring happiness, contentment
and "Victory in '42".
Sincerely
ALVIN E. JOHNSON, President
EVERY EMPLOYEE OF THIS BANK HAS PURCHASED DEFENSE BONDS

T his B a n k H as No A ffiliated Companies
M em ber of F ederal R eserve S y ste m and F ederal D eposit Insurance Corporation

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 19 k2

51

IO W A

NEW S

A . T. D 0 N H 0 W E
P r e s id e n t

Waymack Appointed
Director
W. W. W aym ack, editor of th e edi­
to rial pages of The Des Moines R egis­
ter and Tribune, w as appointed a di­
re c to r of th e Chicago (111.) F ed eral R e­
serve bank.
W aym ack w as selected to fill th e
u n ex p ired po rtio n of a three-y ear te rm
ending D ecem ber 31, 1942, w hich w as
left v acan t by th e d eath of Clifford V.
G regory last N ovem ber. G regory w as
associate p u b lish er of W allaces’ F a rm ­
er and Iow a H om estead in Des Moines.
A n o th er Iow a d irecto r of th e Chi­
cago federal reserv e b an k is F ra n k D.
W illiam s, executive vice p resid en t of
th e F irs t C apital N ational B ank of
Iow a City, Iowa.
W aym ack lives on a farm n ear
D allas C enter, Iowa. He w as aw arded
th e P u litz e r prize for “distin g u ish ed
ed itorial w ritin g ” in 1938. He is a
tru ste e of th e C arnegie E ndo w m en t
for In te rn a tio n a l Peace.

Converted Into State Bank
One of th e few p riv a te b anks re ­
m ain in g in Iow a w as co nverted into
a sta te b an k J a n u a ry 1, th e office of
S tate B an k in g S u p e rin te n d e n t Mel W.
E llis announced.
T he in stitu tio n is th e E xchange
B ank of S pringville, w hich becam e
th e E x change S tate Bank, w ith $25,000
capital an d $5,000 surplus. Officers
w ill be M argaret J. E m m ons, p re si­
dent; George F. M iller, vice president,
an d Sam uel Jam es, jr., cashier and
executive officer.

Burlington Deposits High
D eposits in fo u r b anks and tw o loan
associations of B u rlin g to n and W est
B u rlin g to n for th e y e a r 1941 show ed
a gain of ap p ro x im ately $3,000,000 over
1940, w hile loans for th e p ast y e a r by
th e sam e in stitu tio n s w ere over $1,000,000 g re a te r th a n for 1940.
The increases, in th e opinion of
b a n k e rs and officers of loan associa­
tions, w ere largely due to B u rlin g to n ’s

FRANK W ARNER
S ecreta ry
D es M oines

rap id increase in population and the
a tte n d a n t u p tu rn in building activity
th ro u g h o u t th is area du rin g th e con­
stru ctio n of th e Iow a ordnance p lan t
here. A good percentage of th e loans
w ere for th e purpose of financing the
building of new hom es, th e rem odel­
ing of old hom es into ap artm en ts to
accom m odate new com ers and th e re ­
m odeling, enlarging and m oderniza­
tion of business establishm ents.
T otal deposits in the six in stitu tio n s
d u rin g 1941 w ere approxim ately $14,800.000 as com pared w ith around $11,800.000 in 1940.
Gross loans for all purposes in 1941
totaled approxim ately $7,000,000. In
1940 th ey cam e to about $6,000,000.
B ank officials explained th a t it w as
im possible to ascertain exactly how
m uch w as used in hom e and general
co nstruction w ork, b u t said th ey be­
lieved th e g re a te r am ount w as for
th a t purpose.

Regulations Dropped
Some state b anking board reg u la­
tions on Iow a sm all loan com panies
are being dropped because th e com-

A Remedy for

I n

OMMENTING on w h a t b an k ers
can do in th e ir own com m unities
in an atte m p t to control inflation, here
is w h a t H oyt Young, cashier of the
A m erican N ational Bank, A rlington,
Iowa, has to say about it:
“In m y opinion localized inflation
controls should be divided for th ree
classes of people as follows:
“F irs t—The wage e arn er should,
from his increased wages, purchase
w ith his ex tra earnings Series “E ” U.
S. D efense Bonds.
“Second—T he debtors should be
urg ed by all good b an k ers to pay
e v ery th in g possible on th e ir debts

C

panies have been behaving so well,
Mel W. Ellis, state b an king su p erin ­
tendent, said recently.
No justified com plaints ag ain st the
com panies have been recorded since
1939, th e b anking d ep artm en t said.
T he state ban k in g board had issued
some ru les and regulations affecting
advertising, and loan practices and
o th er details of business in 1936. Be­
cause of the record, these have been
rescinded by th e state b anking board,
E llis said. T hey are contained in w hat
is know n as G eneral O rder No. 1.
The rescinding of th e order does
not affect provisions of the state law
covering some of th e sam e points and
fu rn ish in g safeguards against the
stim u latin g of unneeded or h arm ful
loans or th e m isrep resen tatio n of loan
term s.
The m axim um rate of 3 per cent
a m onth on loans up to $150 and 2 per
cent on loans of $150 to $300 also is
not affected.
T he 1936 b anking board regulations
have been superseded to some ex ten t
by a loan association code of ethics
w hich th e com panies are following,
E llis said.

Aged Banker Dies
M artin Rahm , one of th e g ran d old
m en of K ossuth county, died recently
a t his hom e in St. B enedict afte r tw o
w eeks illness. T he fu n eral w as held
a t th e St. B enedict Catholic church.
Mr. R ahm w as one of th e early day
farm ers on th e “R idge” road in Irv ­
ington tow nship, and w as know n far
and wide. In 1900 th e R ahm s m oved
to St. Benedict, and Mr. R ahm helped
to organize th e Peoples Savings B ank
of w hich he later becam e president.

f l a

t i o

n

F

w hile prices are high on th e products
w hich th ey have to sell.
“T h ird —C reditors should be u rged
to purchase th e ir lim it of th e th ree
series of U. S. Defense Bonds in stead
of im proving or u nnecessarily re p a ir­
ing th e ir real estate holdings, or p u r­
chasing m ore th a n necessary for ordi­
n ary needs of durable goods or goods
in th e lu x u ry class.
“T hus the p u rchase of U. S. Defense
Bonds, th e paying of indebtedness and
reasonable ex p en ditures w ill p rev en t
com petition for products w hich should
only be m an u factu red in lim ited num ­
bers.”
Northwestern Banker


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Federal Reserve Bank of St. Louis

e v e r

January 1942

Years of Service
to the public, to business and to B A N K E R S
W ith 1942, the Bankers Trust C om pany com pletes its 25th y e ar of service
to correspondent banks, corporations a n d individuals in Iowa.
At the outset of our A nniversary year, it is most appropriate that we
salute all Iowa bankers. M any a re our customers. All are our associates
in the field of banking. More than a n y other group, Iowa bankers can a p ­
preciate the significance of this, our 25th A nniversary Year.
Twenty-five y ears of service a n d grow th h av e given us perspective, have
en ab led us to realize the full stature of banking an d bankers. From direct
experience, we know that the Iowa b an k er is still a n outstanding lead er
in his community; that his b ank is still a leading institution; that his asso­
ciates help preserve confidence a n d stability; that every Iowa bank pro­
vides a m uch n eed ed service to the people of the community. As we thus
salute the Iowa banker, we also salu te all banking a s a business an d pro­
fession of outstanding merit.
This organization is proud of the correspondent accounts m aintained at
our bank. W e consider this the best evidence of our ability to render
proper banking service to Iowa bankers. W e would welcom e the oppor­
tunity to perform the sam e service for more of our banking friends in Iowa.
M EM BER


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Federal Reserve Bank of St. Louis

FED ERA 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

IT TAKES PEOPLE TO BUILD A BANK

Photographed in offices of Union State Bank, W interset.

L eft to right, Mr. Rollins, Mr. Huntoon, Mr. Lee, Mr. Pauli.

P e r s o n a l c o n t a c t —t he k e y n o t e of
S ervice to C o r r e s p o n d e n t

B anks

Richard R. Rollins, Vice President, and L. Nevin Lee, Assistant Vice
President, Bankers Trust Company, in conference with Harold
Huntoon, President, and Harvey Pauli, Cashier, at the Union State
Eank, Winterset. Mr. Rollins and Mr. Lee as officers of the Bankers
Trust Company have, as a major responsibility, supervision and
direction of service to correspondent banks. Later, in a similar way,
we hope to acquaint Iowa bankers with other officers, departments
and activities of the bank, through this series of messages.

' f f ffffl


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Federal Reserve Bank of St. Louis

54

•

Increase Capital Stock
An increase in capital stock from
$100,000 to $150,000 by th e issuance of
a $50,000 stock dividend, w as a n ­
nounced by officials of th e Iow a State
B ank and T ru st Com pany of Iowa
City.
The new capital stru c tu re of th e
b ank includes $150,000 capital stock
and $92,000 su rp lu s and undivided
profits, to talin g $242,000.

New Cashier Elected
At a m eeting of th e board of direc­
to rs of th e F irs t N ational B ank of

I O W A

NEWS

•

M issouri Valley, F ra n k C. B urke w as
elected cashier of th e bank to fill the
vacancy created by the death of H. M.
Silsby. Mr. B urke w as first em ployed
by th e bank in 1916 and has been em ­
ployed th ere continuously since 1922.

New Bank Employe
Jam es B row n of Clear Lake, has
been h ired to w ork in th e Citizens
Savings B ank of H anlontow n and
en tered upon his new duties Ja n u a ry
1. Mrs. Clarence Oswald has resigned
th e position she held five and one-half
y ears in various offices of th e in stitu ­
tion.

TEAMWORK

Iowa
Group M eetings
G roup

I

Sioux C ity , February

12

H o te l M a rtin
G ro u p
Burlington,

II

February 23

H o te l Burlington

County Association Meets
The Jefferson-V an B uren b an k ers
association held its bi-m onthly m eet­
ing last m o n th a t th e Fairfield W alton
club w ith d in n er at 6:30 followed by
a program .
R udolph Bechtold of Des Moines,
chem ist for th e Penn-Dixie Cem ent
Company, w as th e principal speaker,
his subject being “C hem istry and The
W ar.”
Two Fairfield banks, th e F irs t N a­
tional and th e Iow a State, w ere th e
hosts to th e visiting bankers. T he as­
sociation has a 100 per cent m em ber­
ship in th e tw o counties. The officers
are:
P resid en t—F. E. Ovrom, F arm ers
State Bank, K eosauqua.
Vice P resid en t—R alph E astb u rn ,
Iow a State B ank and T ru st Company,
Fairfield.
S ecretary-T reasurer—S. H. W atkins,
Iow a S tate Bank, Stockport.

Former Banker Dies
To W in This G rimmest O f A ll W ars
Y es, T eam w ork in every sen se of the w ord P L U S the trem en d ou s resources
and produ ctive capacity of A m erican agriculture, labor, in d u stry and banking
cannot fail! O n th is gig a n tic and dem ocratic effort, each m em ber o f the staffs
of the D rovers B ank s p led g e their w h oleh earted support for duration.

DROVERS NATIONAL RANK
DROVERS TRUST & SAVINGS RANK
M EM BERS, FEDERAL

UNI ON

D E P O S IT

STOCK

N o rth w e ste rn B an ker


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

J a n u a r y 19J2

IN S U R A N C E

YARDS

C O R P O R A T IO N

•

C HI C AG

T hom as C. S herm an died last m onth
at K ossuth hospital, follow ing a lin g er­
ing illness. B urial w as a t Algona,
w here Mr. S herm an resided.
Mr. S herm an w as for m any y ears
pro m in en t in banking circles in Iowa,
South D akota and M ontana. He w as
first associated w ith th e B ank of L iv er­
m ore, later going to th e B ancroft State
Bank. In 1907 he en tered th e em ploy
of th e M ilw aukee Railw ay, b u t still
m ain tain ed heavy in terests in several
Iow a and South D akota banks. L ater
he en tered th e b an king business in
M ontana, and in 1924 he re tu rn e d to

55
his hom e county to becom e p resid en t
of th e A lgona S tate Bank, w hich office
he held u n til it closed in 1927. Mr.
S h erm an also acted as a b an k receiver.

Occupy New Building

New Director Elected
A t th e ir a n n u a l m eeting held last
m onth, th e S tate B an k of E arlv ille
elected M erten H u n t as a new d irector
to succeed A lex P ren tice, fo rm er di­
re c to r w ho died last sum m er. Carl
L axson w as elected president, W illiam
H u n t, vice president, and Miss O rra
L axson, cashier. T he th re e officers
an d th e follow ing co n stitu te th e B oard
of D irectors of th e Bank: Searles Bisgrove, Mrs. M yrna Bisgrove, Mrs. Floy
L axson and M erten H unt.

County Bankers Meeting
T he T am a C ounty B an k ers associa­
tio n m et at th e T am a S tate B ank last
m o n th an d for th e first tim e all officers
of th e Iow a B anks association w ere
p re se n t at th e T am a county m eeting.
All gave sh o rt talks.
A rth u r Donhowe, vice p resid en t of
th e C entral N ational B ank, Des
Moines, and p resid en t of th e Iow a
B an k ers Association; C. F. H arris,
p re sid e n t of th e S tate B ank a t Gladbrook and vice p resid en t and tre a s ­
u re r of th e Iow a B an k ers A ssociation;
and F ra n k W a rn e r of Des Moines,
se c re ta ry of th e Iow a B an k ers A ssocia­
tion.
O ther sp eak ers w ere Asa Thom as,
vice p re sid e n t and cash ier of th e N a­
tio n al B an k of Toledo, and p resid en t
of th e T am a County B an k ers A ssocia­
tion; an d B u rn s M. B yram , farm b u ­
re a u ag en t of T am a county.
T h irty a tten d ed th e m eeting.

B. A. G ronstal, president o f the Council Bluffs S a v in g s Bank, seated at his
desk in his p rivate office in the n ew ban k building.

NE of th e m ost b eautiful and m od­
ern ban k buildings in Iow a w as
occupied last m onth w hen th e Council
Bluffs Savings B ank officially opened
for business in its new b an king home.
F rom basem ent floor to the tip of the
flag pole, th e stru c tu re is th e last w ord
in m odern construction, w hile the
equipm ent of th e in terio r is not only
com plete in every detail, b u t is a r­
ranged to afford th e m axim um of oper­
ating efficiency. E ven though th e new
b ank and every th in g about it is com­
p letely m odern, th ere is n o thing ornate
in its apearance; rath er, th e building
itself and its fu rn ish in g s bespeak a
q uiet elegance and dignity in keeping
w ith th e n a tu re of its business.
A round 10,000 persons visited th e
Council Bluffs Savings B ank on its
opening day, all greeted by P resid en t

O

B. A. G ronstal and o th er officers of the
in stitu tio n , all greeted w ith a sm ile of
pride from th e b ank staff w hich w ill
carry on in th e sam e efficient m an n er
as alw ays in new and b eautiful q u ar­
ters.
L iterally tru c k loads of flowers re p ­
resen ted good w ishes from th e m any
friends and custom ers of th e bank, and
counters and tables w ere alm ost cov­
ered w ith gorgeous floral trib u tes. A
few of these flowers can be seen in the
p ictu res here.
T he N orthwestern B anker is pub­
lishing a series of illu strated articles
on new b ank buildings and new in ­
terio rs and p ictures and fu rth e r de­
scription of th e new Council Bluffs
Savings B ank w ill appear in a com ing
issue.

Accepts Teller's Position
T ed Jam es of Oxford, Iowa, has
ta k e n th e position of te lle r in The
Citizens S tate B ank of H op k in to n and
en tered upon his new du ties J a n u a ry
2nd.

Increases Capital Stock
The C entral N ational B ank and
T ru s t C om pany of Des M oines last
m o n th in creased its capital stock from
$660,000 to one m illion dollars by th e
issuance of a $340,000 com m on stock
dividend.
T he b an k a t th e sam e tim e reduced
its p re fe rred stock from $340,000 to
$250,000.
The new capital stru c tu re of th e
b an k includes one m illion dollars of
com m on stock, $250,000 of p re fe rred
stock, $485,000 surp lu s, an d $520,000 of
u ndivided profits and reserv es—a total
of $2,255,000.

The bankers above, reading from le ft to right, were am ong those from out
o f tow n a tten d in g the recent opening of the new Council B luffs Savin gs
B ank building. They are A. J. H allas, vice president, and John McCumber,
cashier, both of the Stock Yards N ation al, Omaha; E. W. Jones, v ice p resi­
dent Iow a-D es M oines N atio n a l Bank, D es M oines; T. G. B oggs, auditor
Stock Yards N ation al, Omaha; Fred Brady, v ice president Commerce Trust
Company, K ansas C ity; and H erbert L. H orton, p resid en t Iow a-D es M oines
N atio n a l Bank.
N o rth w estern B an ker


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

J a n u a r y 19J2

56

•

I O W A

N E W S ------

New Bank Manager

Bank Robber Sentenced
E rn e s t R. Lewis, 22, of M adrid, w as
sentenced to 25 y ears in A nam osa re ­
fo rm ato ry on a plea of g u ilty to a
charge of ro b b ery w ith aggravation.
Lew is h ad fo rm erly m ade a claim of
in san ity a fte r he w as indicted for th e
holdup of th e K en sett office of th e
M anly S tate B ank on N ovem ber 19,
1941. C aptured in Des M oines a few
h o u rs a fte r th e holdup, Lew is ad ­
m itted obtaining $495. T he loot w as
recovered.

M. B. Schulte, of G ranger, is th e new
m an ag er of th e M allard office of th e
C entral Savings B ank & T ru st Com­
pany.
A. H. Steil, w ho has been in charge
of th e b ank as m anager since its open­
ing in 1934, resigned as of Ja n u a ry 1st
and w ill devote his tim e to th e in su r­
ance business. He w ill continue to
reside in M allard.
Mr. Schulte, th e new m anager, w as
fo rm erly em ployed in the G ranger
office of th e B renton S tate B ank of
Dallas Center.

AM ERICAN NATIONAL BA N K
AND TRUST COMPANY
OF CHICAGO
LA S A L L E STREE T

AT W A S H IN G T O N

Member Federal Deposit

Insurance Corporation

SB 0
S T A T E M E N T
C L O S E

O F

O F

C O N D I T I O N

B U S I N E S S

A T

O E C E M B E B

T 1 IE
31,

Capital Structure Changed
B.
F. K auffm an, p resid en t of th e
B ankers T ru st Company, recen tly a n ­
nounced th e re tire m e n t of $150,000 of
p referred stock held by th e R econ­
stru ctio n F inance Corporation.
A t th e sam e tim e, th e b ank voted a
20 p er cent com m on stock dividend of
$150,000, payable Decem ber 29, to
stockholders of record as of D ecem ber
27.
U nder th e new setup, the capital
stru c tu re of th e b ank includes, $900,000 of com m on stock, $100,000 of p re ­
ferred stock held locally, $500,000 su r­
plus, and $428,000 of undivided profits.

Annual Meeting Held
The an n u al m eeting of th e E xchange
S tate B ank of W esley has been held.
C. J. Sherm an re tire d from th e p re si­
dency, because of ill health, an d w as
m ade vice president. Guy M. B utts
w as elected president; Jo h n H u tch i­
son, cashier. All directors w ere r e ­
elected.

I »1 I

New Teller Appointed
Cash and due from b a n k s ............................................
U n ited S ta tes G overnm ent ob ligation s — direct
and fu lly g u a r a n te e d ..................................................
M unicip al and other m ark etab le securities
L oans and d is c o u n ts ........................................................
F ederal R eserve B ank s t o c k .....................................
C u stom ers’ liab ility on a c c e p ta n c e s .........................
A ccrued in te re st r e c e i v a b l e .....................................
R eal e sta te o w n e d ........................................................
O ther a ssets
. ..............................................................

$39,786,988.11
16.704.085.31
12,264,708.36
28.196.798.31
108,000.00
20,479.37
151,452.31
1.00

18,042.20

A nnouncem ent of th e ap p ointm ent
of Sam Cooke, Jr., as a teller a t th e
M ontgom ery County N ational B ank of
Red Oak, w as m ade th is m orning by
George and W. W. A rtherholt. Mr.
Cooke assum ed his new duties on
J a n u a ry 1.
Iv an E rickson, w ho recently re ­
signed as cashier of th e in stitu tio n ,
left D ecem ber 31 for California w here
he w ill be associated w ith th e B ank of
Am erica.

$97,250,554.97

Christmas Party

r^ r te .^ r /‘fi/r 'e à
C ap ital stock — p r e f e r r e d ...............................
C ap ital stock — c o m m o n ...............................
S u r p l u s .....................................................................
U n d ivid ed p r o f i t s ..................................................
Preferred stock retirem en t fund . . . .
R eserve for ta x es, in terest, con tin gen cies, etc
U n earned d i s c o u n t ............................................
L ia b ility on a c c e p ta n c e s .....................................
D eposits:
1,233,041.11
D e m a n d ...............................
3,760,843.75
U n ite d S ta te s G overnm ent
34,251.97
O ther pu blic fun ds
6,325,421.15
S a v i n g s ...............................
30,000.00
O ther tim e d ep osits .

$ 600,000.00
1,000,000.00
2,000,000.00

765,142.24
205,000.00
909,263.01
367,112.37
20,479.37

91,383,557.98
$97,250,554.97

The officials of th e Iow a S tate B ank
of F airfield e n tertain ed th e em ployes
of th e b ank a t a C hristm as d in n er
p a rty a t th e H otel T u rn e r in Fairfield
last m onth.
Follow ing th e d in n er th ere w as a
g ift exchange and an inform al p ro ­
gram , w ith executive vice presid en t
R alph E a stb u rn in charge.
T his w as th e first tim e in m any
y ears th a t th e b an k force had gotten
to g eth er for a holiday p arty , and it
w as a v ery enjoyable evening.

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE VAULT AND
timelock

e x p e rt s

F. E. DAVENPORT & CO.
Om a h a

Northwestern Banker

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

January 1942

Statement of Condition
DECEM BER 31, 1941

ASSETS
C a s h _______________________________________ $11,974,718.41
U nited States G overnm ent Securities--------------- 13,958,345.33
M unicipal and O ther Tax-Exem pt B onds---------------------------- 1,473,506.69
L o a n s ______________________________________ 10,370,469.41
f

DIRECTORS

!

V. O. FIGGE

54,000.00
24,541.91
1,531.13

F ederal Reserve B ank Stock-------------------------F u rn itu re and F ixtures---------------------------------O v e rd ra fts__________________________________

P r e s id e n t

J. L. HECHT
F re n c h a n d H e c h t, I n c .

$37,857,112.88

J. M. HUTCHINSON
T r u s t O ffic e r

LIABILITIES

CHARLES J. JOHNSON
T ic e P r e s . I n d e p e n d e n t B a M n g C o.

JOS. S. KIMMEL
P res.

R e p u b lic

E le c tr ic

C o.

FREDERICK H. LAMB
P h y s ic ia n

C apital
Surplus
Reserves
Deposits

------------------------------------------------------ $ 600,000.00
____________________________________ 1,200,000.00
and Profits---------------------------------------- 1,547,369.13
___________________________________ 34,509,743.75

H. E. LITTIG
T ic e P r e s . P e o p le s L ig h t C o.

$37,857,112.88

HERMAN STAAK
C a s h ie r

KUNO H. STRUCK
T ic e P r e s id e n t

KARL P. TESKE
T e slc e M ill in g G o.

CABLE G. VON MAUR
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. WALSH
W a ls h

C o n s tr u c tio n

C o.

C . D. WATERMAN
L a n e a n d W a te r m a n

DAVENPO RT B A N K

AND T R U S T ^ ^ C O M P A N Y

Oflembex. Jed & va L

DAVENPO RT,

Rjha&x w S y i i e r n -

IOWA

J
M e m b er F e d e r a l D e p o s it I n su r a n c e C o rp o ra tio n

N o rth w e ste rn B an ker


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

J a n u a r y 1942

58

•

N E B R A S K A

NEWS

T w enty-Five Y ear Club a t th e an n u al
C hristm as d in n er and p a rty last
m onth.
The m em bers to w hom H e rb e rt L.
H orton, president, presen ted w atches
in recognition of th e ir services are:
D avid D oran, Orville M. G arrett, C lar­
ence M ickelson, R obert P erk in s and
H a rry G. W ilson.

Replaces Schulte
E lla Vail w ill replace M atthias
Schulte as m anager of th e B renton
State B ank of G ranger. Mr. Schulte
has been tra n sfe rre d to th e b an k at
M allard.

Join 25-Year Club
Five • m em bers of th e staff of th e
Iowa-Des M oines N ational B ank and
T ru st C om pany of Des M oines w ere
aw arded m em bership in th e b a n k ’s

Bank Awards Prize Trip
T he Citizens N ational B ank of
Boone recently com pleted plans for

•
four 4-H club boys in Boone county
to a tten d a week-end, expenses-paid
trip to Denver. T hey w on th e trip s
in a m anagem ent contest sponsored by
th e bank, th e aw ards being on th e
basis of b est profits retu rn ed .
W inners as announced by th e spon­
soring b ank are R obert L idvall an d
Jay Carlson, G rant tow nship; R obert
Swanson, Peoples, and Ivan Nelson,
Jackson. Bob A rth u r, farm cooperator
of th e ban k staff, leaves w ith th e boys
Ja n u a ry 12. E n ro ute to the N ational
W estern Stock Show, A rth u r and th e
boys w ill see th e in terestin g sights
along th e way. In th e Colorado city
th ey w ill also devote tim e to sight
seeing.

Bank Cashier Deceased

The First National Bank
o f Chicago
Statement of Condition December 31, 1941

Entertain Bank Officials

A S SETS
C a sh a n d D u e fr o m B a n k s , ............................................

.$

4 5 2 ,5 7 2 ,2 7 1 .3 7

U n it e d S tates O b lig a tio n s —Direct and fully Guaranteed
U n p l e d g e d , .............................................$ 3 2 3 ,5 3 3 ,5 5 9 .

27

P le d g e d — To Secure Public Deposits and
Deposits Subject to Federal Court Order,

7 7 ,2 7 0 ,7 9 9 . 9 9

To Secure Trust Deposits,

.

.

3 6 ,0 2 7 ,6 8 3 . .12

Under Trust Act o f Illinois,

.

.

5 1 8 ,5 1 8 . 0 5

O th e r B o n d s a n d S e c u r ities,
L oan s a n d D is c o u n ts , .

4 3 7 ,3 5 0 ,5 6 0 .4 3
7 3 ,2 4 4 ,6 8 2 .7 7

.

.

.

.

4 0 8 ,5 1 8 ,0 3 3 .7 7

R ea l E state ( B a n k B u ild in g ),

4 ,9 6 8 ,9 6 8 .3 2

F ed era l R e se r v e B a n k S to c k ,

2 , 2 5 0 ,0 0 0 .0 0

C u sto m e r s’ L ia b ility A c c o u n t o f A c c e p ta n c e s,

7 0 7 ,4 5 6 .1 1

In ter est E a r n e d , n o t C o lle c te d ,

3 ,0 6 0 ,7 8 8 .9 1

O th e r A s s e t s , ........................................................

1 1 9 ,0 1 8 .3 2
$ 1 ,3 8 2 ,7 9 1 ,7 8 0 .0 0

LIABILITIES

30.000. 000.00

C a p ita l S to c k — C o m m o n ,
S u rp lu s,

.

.

.

.

.

4 5 . 0 0 0 . 0 0 0 .0 0

O th e r U n d iv id e d P rofits,

3 ,0 0 8 ,1 7 3 .1 4

D is c o u n t C o lle c te d , b u t n o t E a rn ed ,

8 2 3 ,4 8 3 .5 4

D iv id e n d s D e c la r e d , b u t U n p a id ,

7 5 0 ,0 0 0 .0 0

R e se rv e fo r T a x e s, etc.,

3 ,3 5 4 ,5 5 6 .1 7

L ia b ility A c c o u n t o f A c c e p ta n c e s,
T im e D e p o s its ,
D e m a n d D e p o s its ,

.

.

.
.

D e p o s its o f P u b lic F u n d s,

H orace M. Silsby, 73, cashier of the
F irs t N ational B ank at M issouri V al­
ley since Jan u ary , 1941, fo rm er assist­
a n t cashier of the State Savings B ank
of M isouri Valley, and once cashier of
th e Modale Savings Bank, died a t his
hom e in M issouri Valley last m onth
from h e a rt trouble afte r illness begin­
ning last A ugust 15.

Mr. and Mrs. E lm er Yoder e n te r­
tained th e officials of th e W ellm an Sav­
ings B ank and th e ir w ives a t a 6:30
d in n er last m onth a t Ruggs cafe.
A th ree course din n er w as served
in th e dining room w hich w as dec­
orated w ith C hristm as flowers an d
candles.
Those sh arin g th e courtesy w ere
Mr. and Mrs. Roy D urian, Mr. and Mrs.
H en ry D urian, Mr. and Mrs. Leo D u r­
ian, Mr. and Mrs. Ross Severt, Mr.
and Mrs. R ussell W inegarden, Mr.
an d Mrs. Clarence Rowe, and Mr. and
Mrs. Toppan Johnson.

New Bookkeeper
Miss E m m y A nderson of Canby,
M innesota, has accepted a position as
bookkeeper a t th e Sheffield Savings
Bank. Miss A nderson has had several
y ears of b anking experience in various
departm ents.
Miss A nderson w ill succeed Miss
G ertrude Stading, w ho has held th e
position for th e p ast four years.

9 5 6 ,6 0 5 .2 1

.

$ 1 8 0 ,0 9 0 ,3 1 0 . 31

.

.

.

.

9 7 7 ,9 7 4 ,7 3 9 .

Banks Sold or Bought!

11

1 4 0 ,8 3 0 ,0 1 1 . 0 2 1 ,2 9 8 ,8 9 5 ,0 6 0 .4 4
L ia b ilities o th e r th a n th o s e a b o v e stated ,
. ___________3 ,9 0 1 .5 0
$ 1 ,3 8 2 ,7 9 1 ,7 8 0 .0 0

quietly, quickly and in a personal manner

JAY A. W ELCH
Haddam, Kansas
“35 years P ractical Banking
E xperience.”

N o rth w estern B anker


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

J a n u a r y 194-2

59

STATEM ENT OF C O N D ITIO N

• DECEM BER 3 1 , 1 9 4 1

esources

A?

$4,574,633.54
Loans and Discounts------------------159,900.00
Other Bonds and Stocks-----------------------------.36
O verdrafts____________ ___________________
22,957.65
Furniture and Fixtures------------------------------2 , 000.00
Customer Liability on Acceptances
Government Obligations, Direct
and Fully Guaranteed____
..$ 430,875.00
Municipal Bonds_______________ 156,690.72
2,645,017.08
Cash and Due from Banks---------- 2,057,451.36
$7,404,508.63

es
Capital Stock—Common-------------------------- ------ $ 200, 000.00
Surplus
. --------------------------------------------- 200 , 000.00
88,508.68
Undivided P ro fits---------------------------------------79,208.90
R eserves_____________________________ _____
50,172.07
Unearned Discount----------------------------------2 , 000.00
Bank Liability on Acceptances-----------------------6,784,618.98
Deposits ------ --------------------------------------------$7,404,508.63

OFFICERS

F rederick M. M orrison

P resident
W infield W. Scott

Vice P resident
J. R. A stley

Cashier
E dward P. K autzky

A sst. Vice P resident
F rank M. Thom pson

A sst. Cashier

M em ber F ed eral D e p o sit
In su ran ce C orporation

ALLEY
A VIN G
BANK

DES MOINES

Northwestern Banker

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

January 19^2

60

•

Joins Home Loan Bank
T he Charles City B uilding a n d Loan
A ssociation has joined th e F ederal
Hom e Loan B ank and is now a qual­
ified m em ber of th e Des Moines
branch it was revealed recen tly upon
receip t of a certificate from th e board
a t W ashington, D. C.

Declare Dividend
D irectors of th e F ed eral H om e Loan
B ank of Des M oines have declared th e

I O W A

NEWS

•

fo u rte en th consecutive dividend to
stockholders, am ounting to $90,395, it
w as announced recently.
The board also approved new ad ­
vances to m em ber savings and loan
associations totaling $1,295,000.
R o b ert J. R ichardson, president, a n ­
nounced th e b ank and its 245 m em ber
in stitu tio n s are co-operating in the
n atio n al defense effort th ro u g h the
pu rch ase and sale of defense bonds
and by assisting in th e financing of
p e rm a n en t housing in defense areas.

in mi
OTTUMWA,

J

U*

IOWA

M em ber of F ederal R eserve S y ste m

Statem ent of Condition as of Decem ber 31, 1941

RESO U RCES
L oan s and D is c o u n ts ..............................................................
B an k B u ild in g ............................................................................
F urniture and F ix tu res and S a fety D e p o sit V au lts
O ther R eal E s t a t e .....................................................................
S to ck in F ed eral R eserve B a n k ...........................................
O verdrafts ...................................................................................
U . S. B o n d s ....................................................... $ 188,133.00
M unicipal B on d s ............................................ 1,711,570.36
O ther M arketable B o n d s ............................
492,300.64
Cash and E x c h a n g e ..................................... 3.058,404.54

$2,465,830.56
107,500.00
22,307.69
7,000.00
15,000.00
2,207.46

5,450,408.54
$8,070,254.25

L IA B IL IT IE S
Capital (C o m m o n ) ................................................................
Surplus
......................................................................................
U n d ivid ed P rofits and R e s e r v e s ..........................................
D ivid en d P ayab le January 2,1942.....................................
D e p o sits
.....................................................................................

$ 300,000.00
200,000.00
98,985.50
12,000.00
7,459,268.75
$8,070,254.25

O F F IC E R S
F R A N K V O N S C H R A D E R , C hairm an o f B oard and P r esid en t
H . L . P O L L A R D , V ic e P r esid en t
C. P . G L E N N , A s s is ta n t C ashier
R . W . F U N K , V ic e P r esid en t
W . C. M IL L E R , A s s is ta n t C ash ier
M A X V O N S C H R A D E R , C ash ier
F R E D D IM M IT T , A s s is ta n t C ashier
C. G. M E R R IL L , T ru st Officer
M e m b e r F e d e ra l D e p o s it In su ra n c e

N early 100 of the associations h av e
been approved by th e tre a su ry de­
p a rtm e n t as issuing agents for defense
securities.
T hrough them hundreds of th o u ­
sands of dollars w o rth of bonds and
stam ps have been sold to th e public.
Defense housing areas in Iow a in ­
clude Des Moines, D avenport, B u r­
lington and Council Bluffs. In th ese
cities, along w ith four in tw o o th er
states, m em ber associations have
loaned m ore th a n 28 m illion dollars
to finance homes.
L oans to finance purchase of ex ist­
ing hom es increased 38 p er cent, it
w as announced, reflecting a tre n d
aw ay from new hom e construction on
account of p rio rities and shortages in
building m aterials.
Iow a directors of th e b an k w hose
term s expired are J. W. Irons of Ma­
son City and Jo h n R. Loom is of Red
Oak. New directors in Iow a elected
w ere W illiam B reau, secretary of th e
S tate Building, Loan and Savings As­
sociation, Des Moines, and Jo h n C.
Shenk of D avenport.
Col. C. B. Robbins of Cedar R apids,
Iowa, and Chicago, Illinois, is ch air­
m an of th e board. The b ank operates
in Iowa, M issouri, N o rth D akota,
South D akota and M innesota.

Retired Banker Dead
H ans H ansen, Sr., 79, re tire d fa rm e r
and b an k er of E xira, died of a h e a rt
attack last m onth at Long Beach, Cali­
fornia, w here he had gone Decem ber
5th, plan n in g to spend th e w in ter a t
th e hom e of his daughter, Mrs. O m ar
Jacobs.

Klisart Named President
E.
H. K lisart w as nam ed p resid en t
of th e H ard in County B ankers Asso­
ciation at th e an n u al m eeting held last
m o n th in Ackley. Mr. K lisart, cash­
ier of th e Citizens S tate Bank, suc­
ceeds H. S. L ekw a of Ackley.
O ther officers nam ed w ere T. W.
Jones, H ubbard, vice president, and
G. H. B allard of th e Iowa F alls S tate
Bank, secretary-treasurer. T he busi­
ness m eeting followed a d in n er in th e
M. & M. cafe. A pproxim ately 25 w ere
in attendance.

And It Isn't
A com m ittee is com posed of im ­
p o rta n t persons w ho singly th in k th a t
th ey can do nothing, b u t to g eth er
agree th a t n o thing can be done.

C o r p o r a t io n

E x p erien ced M an —W ants banking or
collecting position. Best references fu r­
nished. Address Postoffice Box 514, Sa­
fina, Kansas.
N o rth w estern B an ker


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Federal Reserve Bank of St. Louis

J a n u a r y 19k2

C0is*clL

gl,UFFS

REALIZATION!
OR tw enty y e a rs w e h a v e d ream ed a n d p la n n e d for a
n e w b an k in g hom e that w o u ld e n a b le us to com fortably
take care of our g ro w in g n eed s. Last m onth w e sa w our
dream com e true— w ith the o p en in g of our n e w b u ildin g at
P earl an d B roadw ay.

F

On the d a y of our o p en in g , over 12,000 of our custom ers
an d friends cam e in to rejoice w ith u s in our n e w hom e.
M any ban kers from Iow a a n d N eb rask a lik ew ise dropped
in to w ish u s w ell.
Here in our n e w quarters, light, sp a cio u s a n d sound-proof,
w e h a v e ev ery facility for the very best of b an k in g service.
In our e y e s , this n e w hom e is a sym b ol of the strength a n d
vision that h a v e m ad e p o ssib le the grow th of Iow a's oldest
bank, the C ouncil Bluffs S a v in g s Bank (organized, 1856).
W h en you com e to C ouncil Bluffs, com e a n d p a y us a
visit. W e w an t you to share in our enjoym en t of a m odern,
n e w b an k in g hom e.

C o u n c il B l u f f s Sa v in g s B a n k
Northwestern Banker

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Federal Reserve Bank of St. Louis

January Î9't2

62

Bank Director Retires
R. P. Blake, cashier of th e F a rm e rs
Savings B ank of M itchellville, re g re t­
fully announces the re tire m e n t of F.
W. T ram el from th e board of directors.
Mr. T ram el becam e a directo r of th e
bank in 1916 w hen it w as located at
Ira, Iowa, and has served on th e board
continuously since th a t tim e. In 1927
he w as m ade p resid en t of th e bank,
and continued to serve in th a t capacity
u n til 1937. Mr. T ram el rem ained as
director, how ever, u n til th e p resen t
tim e. Poor h ealth and a slig h t im p air­
m ent in his h e a rin g have influenced
Mr. T ram el to re tire com pletely after
25 years of service.

IO W A
FROM

N excellent m eeting w as held at
W heatland last m onth w ith all
except one b ank being represented.
The occasion w as th e ann u al tu rk e y

A

Statem ent of Condition as Made to Superintendent of Banking
at tlie Close of Business Decem ber 31, 1941
RESOURCES
First Mortgage Loans______________________________ $ 677,139.07
Loans Secured by Collateral________________________ 1,384,926.44
Commercial Loans Supported by Financial
Statements --------------------------------------------------------- 1,083,597.28
Overdrafts ___________________________
Real Estate (form er bank building in clu d ed )_____
Furniture and Fixtures____________________________
State, County and M unicipal Bonds________________
209,500.74
139,923.51
Market Bonds ____________________________________
Call Loans and Commercial Paper_________________ 1,082,500.00
U. S. Government Securities_______________________ 288,026.00
Cash on Hand and Due from Banks________________ 2,982,450.11

1,145,662.79
1,129.65
83,900.00
21,301.96

4,702,400.36
Î7,954,394.76

LIA BILITIES
Capital S t o c k --------------------------------------------------------- $ 175,000.00
S u r p lu s------------------------------------------------------------------225,000.00
U ndivided P r o fits _________________________________
11,145.15
D ividend Checks Outstanding_____________________
DEPOSITS __________________

411,145.15
1,265.00
7,541,984.61

$7,954,394.76
D e p o s its In su red b y T h e F e d e r a l D e p o s it In su r a n c e C o rp oration
W a s h in g to n , D . C.
$5,000.00— M a x im u m In su r a n c e for E a ch D e p o sito r — $5,000.00


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Federal Reserve Bank of St. Louis

J a n u a r y 19^2

THERE

J. A . S A R A Z E N

W ATERLOO, IOWA

N o rth w estern B an ker

AND

By J. A . Sarazen, A ssociate Editor

The Waterloo Savings Bank

O FFICERS
H . G. N o r t h e y , President
R . W . W a it e , V ice President
Ca r l e t o n S ia s , V ice P resident
J. J. M il 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 in g M il l e r , A ss’t Cashier
O l iv e r J. S c h u t t e , A ss’t Cashier

HERE

NEW S

DIR EC TO R S
Cl a r e n c e E . Ca m p b e l l
C. F . A l t st a d t
Ca r l e t o n S ia s
H arry A. L im b e r t
R. W. W a it e
W il l E . O gle
H arry G. N o r t h e y
C. R. D avis
J. J. M il l e r
K. L. B ragdon
L o w e ll J. W a l k e r
G eorge E . P ik e
Clyde H in s o n

d in n er and plates w ere set for 35 m em ­
bers and guests. W alter T hiele, cash­
ier, K eokuk Savings B ank and T ru st
Company, an d form er W h eatland
banker, w as the guest of honor. He
m ade a sh o rt talk dealing in p a r­
ticu lar w ith service charges as ap ­
plied by K eokuk banks. A fter th e
business session cards w ere in order,
or if you p referred, you could listen to
E. M. AVarner, president, City N ational
Bank, Clinton, and some of th e o ther
boys tell stories. Officers of th e Clin­
ton County B ankers A ssociation are:
J. Y. F loerch in ger, president; John
Thom sen, Jr., vice president; and H. G.
Kram er, secretary. W e learn th a t Mr.
K ram er w ho is vice presid en t of th e
City N ational Bank, Clinton, has been
secretary of th e Clinton County B ank­
ers A ssociation continuously for m ore
th a n 22 y ears and we are w ondering
if th is is n ot a record for any county
ban k ers association in th e state.
A ccording to J. D. Roth, cashier,
Kellogg Savings Bank, th e p ast y ear
w as a good y e a r for his bank. Both
th e loan volum e and deposits m ade a
nice increase over th e previous year.
D eposits a t p resen t are over $750,000
w ith an excellent volum e of loans of
over $514,000. R apid liquidation is
expected now how ever since cattle
feeders are h esitan t about going back
into the m ark et and w ill seal th e ir
corn instead of feeding it. M any hogs
are being raised in th is area.
O. Li. K arsten, executive vice p resi­
dent, N ew ton N ational Bank, rep o rts
a fair y ear for his bank. D eposits are
up some, th e loan volum e off a little
and th e earnings w ill be sufficient to
pay th e reg u lar sem i-annual dividend,
am ortize building, increase su rp lu s
and provide a bonus for all em ployees.

At th e Jasp er County Savings Bank,
N ew ton, R oy O. B ailey, president, tells
us th a t 1941 w as an excellent y e a r for
his bank. D em and has been v ery good
F O R S A L E — D ou ble tim e r sc r e w door
sa fe . G ood con d ition . W ould b u y fire ­
p r o o f s a fe cab in et. S u m n er O sgood, Iow a
F a lls.

63
b u t rap id liquidation is expected now
in all lines.
H. E. B ell, executive vice president,
F irs t N ational B ank, Colfax, said his
b an k h ad a v ery good year. Volum e
has been holding up v ery w ell b u t
som e liquidation is now expected.

C.
E. D ahl, cashier, K iron State
B ank, is re c u p e ratin g in th e Des
M oines V eteran s H ospital. He w as
operated on D ecem ber 17, for tu m o r of
th e kidney. He is expected back a t
th e b an k th e la te r p a rt of F eb ru ary .
W m . E. W enzel, assista n t cashier, c a r­
ries on in his absence.
Jay AV. H em p hill, a sista n t cashier,
F a rm e rs S tate Bank, Yale, and Mrs.
H em phill, are th e p roud p a re n ts of a
seven pound girl, b o rn D ecem ber 1st.
Two boys com plete th e fam ily. The
older boy joined th e U. S. N avy Sep­
tem b er 1, and is located at th e G reat
L akes T rain in g Station.

A ccording to R. O. B yerrum , execu­
tive vice presid en t, F irs t T ru s t and
Savings B ank, D avenport, a successful
b a n k e r is com posed of 1/5 accountant;
2/5 law yer; 3/5 political econom ist
an d 4/5 gentlem an an d scholar—total
10/5—double size. A ny sm aller m ay
be a paw n bro k er or p ro m o ter—not
a b anker.
a ssista n t cashier,
F irs t S tate B ank, B attle Creek, is con­
valescing in an Iow a City hospital.
H is h ealth has been bad since last
M arch.
E. D. M ickelson, executive vice
p resid en t of th is b an k re p o rts an ex­
cellent y e a r for his bank. F a rm e rs
are g ettin g good prices and are clean­
ing up th e ir old obligations and are
try in g to stay out of debt.
Ivan

B aum ann,

T he F arm ers State Bank, Charter
Oak, has ju s t released a n o th e r 10 p er
cen t dividend of th e 40 p er cent tru s t
fund. T his am ounted to $9,500 m a k ­
ing a to tal of 80 p er cent of th e tr u s t
now paid back.

B E T W E E N a city bank and
its correspondents are many ties
less tangible, but more signifi­
cant, than the daily exchange of
letters, phone calls, and visits.
Through every tran saction
entered on the books, each be­
comes a part of the other. Every
service rendered both meets a
need and adds to the store of
valuable experience.
We gratefully acknowledge the
part our friends have had in
the growth of this institution.

. . . THE . . .

P H IL A D E L P H IA
NATIONAL

BANK

ORGANIZED 1803

PHILADELPHIA, PA.
A t th e U te S tate B ank, W. L. T em ­
ple, cashier, told us deposits are up
$90,000 over a y e a r ago an d L. & D.
w ere holding about even. E arn in g s
for 1941 w ere satisfactory. A n effort
is being m ade to hold dow n tim e de­
posits and no outside tim e m oney is
being accepted.

Capital, Surplus and Undivided Profits

$45,000,000
M em ber of Federal D ep o sit Insurance C orporation

F or S a le — D ieb old sa fe , a n ti-d y n a m ite ,
p a te n te d J u ly 28, 1935, N u m b er 4271.
S ize 27% in c h e s fr o n t, 26 in ch es sid e, and
h e ig h t 37% in ch es, w ith tw o co m p a r t­
m e n ts in sid e. W e ig h t 5400 pou nd s. A d ­
dress H. H. P ., care N o r th w e ste r n B an k er.
N o rth w estern B an ker


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Federal Reserve Bank of St. Louis

J a n u a r y 1942

64

•

I O W A

NEWS

•

A notice w as sent out by th e W est
L iberty State Bank advising custom ­

b an k paid a $5 p er sh are dividend and
added to th e reserves.

e rs th a t effective D ecem ber 1, 1941,
th e ra te of in te re st paid on saving
accounts shall be 1 p er cent p er a n ­
num . The bank w ill continue to pay
2 p er cent in te re st on tim e C D’s for
tw elve m onths.

A rthur T rust and Savings Bank:

Officers of th e M anning Trust and
S a v in gs Bank, re p o rt a v ery good y e a r
for 1941. The chief source for loans
is cattle pap er w hich has been v ery
good th e p ast year. Im p lem en t loan
volum e has also been v ery good. The

The following w as picked up in the
N E W SERV ICE CHARGES
The b anks are evidently overlook­
ing a good chance to increase
revenue. In addition to charging
for checking accounts and ren ew ­
als on notes, we offer th e follow­
ing suggested charges:
E n te rin g bank:
By fro n t d o o r ....................$ .50
By side door
.25
A sking for b a l a n c e ................1.00

A rguing over am ount of balances:
In civil m an n er
.50
In quarrelsom e m anner:
F o r first tim e
. . 2.50
F o r each a fter first .......... 5.00
S pitting on floor:
P l a i n .....................................
.05
Tobacco .
10
Speaking to Officers:
To presid en t
.............. 1.00
To vice presid en t
.75
To cashier
50
To any assistan t
cashier
No charge
K eeping presid en t from
golf gam e
.
H anging

Loans and D iscounts
$ 81,768,771.84
U . S. Governm ent Securities
76,068,042.26
Other Securities Guaranteed b y U . S. G overnm ent 27,632,578.59
Other Bonds and Stocks
8,965,909.89
Stock in Federal Reserve Bank
441,000.00
Banking H ouse, Im provem ents, Furniture
and Fixtures
476,298.24
Other Real E state Owned
1,640,272.11
Custom ers’ L iability a /c Letters o f Credit,
A cceptances, etc.
702,052.28
Accrued Interest Receivable
552,835.48
Overdrafts
11,218.62
Other Resources
5,568.77
Cash and D u e from Banks
143,870,756.11
$342,135,304.19

Schleswig, know n w idely as a g reat
cattle feeding te rrito ry , m arches for­
w ard in th is n ational em ergency by
producing m ore food for th e boys in
cam ps, and th e nation. In th e m idst
of th is v ast feeder te rrito ry is th e
F a rm e rs S tate B ank of Schleswig,
standing sq u arely behind th e gun.
T h a t’s one w ay th is bank, like m any
o ther banks, w ill do th e ir p a rt in back­
ing up our n ational program in this
tim e of em ergency. A ccording to J. A.
R ohw er, p resid en t of th is bank, feed­
ers in th is te rrito ry all m ade m oney
du rin g th e p ast y ear and w ill continue
to feed as before regardless of h ig h er
prices for young beeves. Mr. R ohw er
hasten s to states th a t w hile m ost all
farm ers feed in th is te rrito ry , th ere
are no exceptionally large feeders. To
prove th is point he show ed us a ch art
m ade up a few m onths ago show ing
th a t am ong 180 custom er feeders th e
total nu m b er of head being fed w as
13,000, or an average of about 72 head
p er feeder. Two and one half p er
cent is being paid on deposits an d
every one pays 6 p er cent on cattle
paper.

LI ABI LI TI ES

The F arm ers State Bank, M itchellv ille, m ade some change in th e ir serv ­

Capital— Common
$ 10,200,000.00
Surplus and Profits
9,795,982.85
D ividend Declared, Payable February 28, 1942
240,000.00
Reserve for Taxes, Interest, etc.
233,872.86
Unearned D iscount
233,305.93
Liability a /c Letters o f Credit, Acceptances, etc.
725,983.81
Other Liabilities
1,511.11
Individual D eposits
$162,660,444.65
Savings D eposits
31,526,046.84
Bank D eposits
118,647,127.56
Governm ent D eposits
156,209.67
C ity o f St. Louis and Other
Public Funds
7,714,818.91
T otal D eposits
320,704,647.63
$342,135,304.19

ice charge on checking accounts ef­
fective Ja n u a ry 1st. The charge as
w ill now be applied is as follows: Dorm ien t accounts (3 or less checks) no
charge. An account going below $50
and m ore th a n th ree checks draw n,
25c w ill be charged plus 3c for each
check draw n over 3. A ccounts av erag ­
ing over $50, no base charge and one
check allow ed for each m inim um b al­
ance of $10 and 3c w ill be charged for
each additional check.

Broadw ay *■Locust * Olive

The A. I. B. class a t G rinnell is
functioning sm oothly th is y ear w ith
19 m em bers in th e class. T he subject
th is y ear is “b ank a d m in istratio n ” an d
J. W. C harlton from th e college is th e
in stru cto r. T he p resid en t of th e class
is H u gh C. M cCleery and th e Board
of G overnors consist of: M. L. H ickm en, A. E. P eters, L. M. B an ning and

CONDENSED

STATEMENT

FIRST N A T I O N A L

BANK

IN ST. L O U I S
A t the Close oj Business, December 31, 1941
RESOURCES

M e m b e r F e d e r a l D e p o s it In su ra n c e C o rp o ra tio n

J. L. A nderson.
N o rth w estern B an ker


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Federal Reserve Bank of St. Louis

J a n u a r y Í9'i2

65

-•

IOWA

NEWS

•-

plan or, even, a “six-m onths” plan. It
is m ore a question of doing all we can
as fast as hu m an in g en u ity and en ­
ergy can w ork. W hile it is evident
th a t we w ork against th e odds of tim e,
th e re is a division of opinion in gov­
ern m en t circles on th e question of how
rap id and drastic th e tra n sitio n from
peace-time to w ar-tim e effort should be
in view of th e sacrifices involved.
Such is th e n a tu re of th e im ponder­
ables confronting those charged w ith

planning our course. It is alm ost like
attem p tin g to say, how far is up.
One fu rth e r aspect of “w ar econ­
om y” should be faced and, th a t is, th e
necessity confronting all of us of be­
com ing reconciled to th e plain fact
th a t grave sacrifices, dislocations and
problem s followed inescapably in th e
w ake of those com m itm ents alread y
u n d ertak en by th is n atio n in w orld
affairs. It is quite generally held th a t
we cannot have guns and b u tter, too—

Live Stock
N ational Bank
SAe

UNION
HAROLD

STOCK

STATEMENT
M r. K le in , a ssista n t v ic e p r e s id e n t
of

th e

Bank,

Ioiva -D es
was

TELEPHONE

YARDS

YARDS

1220

P. K L E IN

M o in es

re c e n tly

N a tio n a l

e le c te d

tr e a s ­

u rer of th e D es M o in es C h a m b e r of
C om m erce.

FORECAST FOR 1942
(C ontinued from page 16)
in a m a n n e r of speaking. A nd th e re
a re som e w ho have th e capacity to
keep enough m oves ahead to cope w ith
th e u n k n o w n factors as th e y becom e
know n. B ut do not m ake th e m istak e
of expecting th e im possible in th is
m a tte r of p lan n in g our course accu­
ra te ly over an y appreciable period of
tim e. L et m e elaborate for a m om ent
on th is question of th e u n k n o w n q u an ­
tities confro n tin g us as a nation. F o r
instance, w h a t are th e u ltim ate re ­
q u irem en ts from an econom ic sta n d ­
po in t of carry in g out th e com m itm ent
of lend-lease aid to “all w ho fight
ag g resso rs” or of being th e “arsen al
of D em ocracy”? A gain, w h a t arm s,
eq u ip m en t an d w ar m aterial are
needed in a day such as ours w hen
m ilita ry h isto ry is being m ade an d th e
only know n lim its are tho se based on
h av in g m ore tan k s, m ore planes and
m ore gu n s th a n th e enem y w hose
supply of tan k s, p lanes and gu n s is
still u n k n o w n and continues to be re ­
flected w ith each new m ilita ry cam ­
paign? F inally, an d equally im p o rtan t,
is th e elem ent of tim e. W e cannot
set up a “five-year” plan, a “ten -y ear”

OF

CONDITION

December 31, 1941

RESOURCES
C ash a n d d u e fr o m b a n k s .............................................. $ 2 2 , 9 4 8 ,9 0 5 . 5 5
U n ite d S tates G o v e r n m e n t s e c u r it i e s .....................
3 , 8 1 9 ,9 8 2 . 0 6
State a n d m u n ic ip a l s e c u r it i e s ....................................
4 5 3 ,7 0 4 .9 9
O th e r m a r k e ta b le b o n d s ................................................
9 8 6 , 4 6 6 .7 2
L o a n s a n d d i s c o u n t s .........................................................
7 , 0 5 5 ,6 2 8 . 8 7
F ed er 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 rn itu re a n d e q u ip m e n t ...............................................
1 .0 0
I n te r e s t e a r n e d , n o t c o l l e c t e d .....................................
2 9 , 5 2 7 .2 2
3 8 ,6 5 7 .2 1
C u rren t r e c e iv a b le s a n d o th e r a s s e t s ......................
$ 3 5 , 8 5 7 ,8 7 3 . 6 2

LIABILITIES
C a p it a l........................................................................................$ 1 ,0 0 0 ,0 0 0 . 0 0
S u r p lu s .......................................................................................
1 , 5 0 0 ,0 0 0 . 0 0
U n d iv id e d p r o fits an d r e s e r v e s ..................................
1 7 1 , 6 2 0 .8 9
U n e a r n e d d i s c o u n t .............................................................
4 5 ,1 5 9 -5 6
D e p o s i t s .................................................................................... 3 3 , 1 4 1 ,0 9 3 . 1 7
$ 3 5 , 8 5 7 ,8 7 3 . 6 2
B O A R D

OF

Frederick H. P rince

DIRECTORS
Arthur G. Leonard
President, Union Stock Yard
& Transit Co.

Providence, R. I.

Robert J. D unham

W illiam J. O’Connor

Investments

Ass't General Manager, Union
Stock Yard & Transit Co.

R ichard H ackett
General Manager, Central
Manufacturing District

R alph M. Shaw
Winston, Strawn & Shaw

O rvis T. H enkle
Vice-President and General
Manager, Union Stock Yard
& Transit Co.

T homas

e . W ilson
Chairman of the Board,
Wilson & Co., Inc.

D avid H. Reimers
President, The Live Stock National Bank of Chicago
SERVING

AGRICULTURE

AND

INDUSTRY

r /u ie e 4 8 6 8
M E M B E R

F E D E R A L

D E P O S I T

I N S U R A N C E

C O R P O R A T I O N

Northwestern Banker

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

January 1942

66

Bank Staff at Xmas Party

P ictu red above is the staff of the L ive Stock N atio n a l Bank, Sioux City,
pausing in th eir enjoym ent of th e ir C hristm as P a rty held last m onth a t the
H otel M ayfair. T h irty -fo u r officers and employes of the b an k were in a tte n d -'
ance a t th e dinner and en te rta in m e n t featu res. The evening closed w ith
p resen tatio n of g ifts which b rought to light m any new and am using fac ts
and fancies among the individuals of th e staff.

th e logic of w hich follows from re a ­
soning th a t o u r capacity to produce
is lim ited and, a fte r tak in g from total
production a large and increasing
am ount for arm am en t, th e rem ain d er
available for consum ption necessarily

sh rin k s. The only serious q u arrel w ith
such logic is th e prem ise of an inflex­
ible lim it of production. A t any given
tim e and in certain industries, th is
lim it is evident and positive. B ut to
accept th e prem ise as applicable to

O pen ed for Business O ctober 15, 1934
Statement of the

IOWA STATE BANK & TRUST COMPANY
Iowa City, Iowa
DECEMBER 31, 1941
R E SO U R C E S
C ash and D u e from B a n k s .........................................................................$1,556,651.95
U . S. B o n d s .........................................................................................................
270,035.00
O th er B o n d s and S e c u r i t ie s ......................................................................
118,996.44
C A S H O R I T S E Q U I V A L E N T ................................................................................................ $1,945,683.39
L o a n s and D is c o u n t s ................................................................................................................ 1,674,601.48
O v e rd ra fts .....................................................................................................................................
235.48
B a n k in g H o u s e ...........................................................................................................................
53,300.00
F u rn itu re and F i x t u r e s ...........................................................................................................
17,000.00
$3,690,820.35
L IA B IL IT IE S
C a p ita l S to ck ......................................................................................................................................... $ 150,000.00
S u rp lu s and U n d iv id e d P r o fits ......... ..........................................................................................
89,722.59
R e se r v e for I n te r e s t .........................................................................................................................
248.25
D e p o s its
.................................................................................................................................................. 3,450,849.51
$3,690,820.35

O F F IC E R S
B e n S. S u m m e k w i l l , President
D r . E . M. M a c B w e n , Vice President
W. W. S u m m e e w i l l , V ice President
M . B . G u t h r i e , Cashier
W. P. S c h m i d t , A ss’t Cashier
M . E . T a y l o r , Auditor

D IR E C T O R S
D r . E . M. MacE w e n

R. J . B a s c h n a g e l

M. B . G u t h r i e

G e o r g e A. T h o m p s o n

G u y 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

Northwestern Banker

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

January 19^2

our econom y as a w hole is to be de­
featist and, in m y opinion, guilty of
false reasoning. Viewed in th is light,
some of our problem s of shortages
m ay prove to be tem p o rary and quite
susceptible of correction.
So m uch for a pictu re or, a t least a
glim pse of th e background ag ain st
w hich our problem takes form . L et
us tu rn now to a b rief consideration
of those ou tstan d in g ch aracteristics
of th e business pictu re as it appears
now and tends to cast its shadow into
th e n earb y future.
P robably th e m ost serious problem
before business m en today is th a t of
shortages in certain m aterials and the
w hole tra in of serious com plications
th a t follow. F o r m any years, our
econom y has been b u ilt and business
has been developed on th e th eo ry th a t
the first problem is to create a m ark et
or m ass dem and for a product, follow­
ing w hich th e supply of m aterials and
labor necessary for its production w ill
be forthcom ing m ore or less au to ­
m atically. U nder such a system , our
chief problem is to p rev en t potentials
on th e supply side of th e equation
from over-running dem and. Now we
have reached a period of un k n o w n
du ratio n w hich prom ises to be ch ar­
acterized by a com plete rev ersal in
th is fu n dam ental em phasis in th e
equation of supply and dem and. The
dem ands of th e m ark et are stim ulated
by increasing national incom e b u t the
supply is subject to th e preem ptive
dem ands of arm am en t and w ar m ate­
rials. As y et th is problem is b u t little
understood and th ere is m uch of a
highly controversial n a tu re involved.
W e have not developed th e facts nor
have we as y et developed th e tech ­
nique for dealing w ith th e problem .
Some shortages are real, beyond a
doubt, w hile others are subject to th e
suspicion of sim ulation w hen exam ­
ined in th e light of available facts.
H ere again appears th e question of
u n know n q u an tities and un k n o w n
tim e elem ents, to w hich I have p re ­
viously referred. The prio rities sys­
tem has not w orked well and is th e
subject of m uch justifiable criticism .
Its v ery introduction, coupled w ith th e
G overnm ent’s experim ental efforts to
enforce price ceilings, tended to defeat
its purpose by causing a buying panic
and forcing all elem ents in th e m a rk e t
from th e G overnm ent dow n to th e
housew ife to become hoarders.
T he prio rities system w ill be supple­
m ented and ev en tually largely re ­
placed by a system of allocations or
ratio n in g for com m erce and industry.
W hile th e w hole plan is still in th e
form ative stages, it w ill probably w ork
som ething like this:
(1) In d u strial groups w ill be asked

67

• IOWA
to m ake k now n th e ir needs for
critical m aterials based on as­
sum ed ra te s of production;
(2) S urveys of supplies of critical
m aterials w ill be m ade to give
the an sw er to th e o th er side of
th e question;
(3) In d u stria l groups, beginning
w ith those engaged essentially
in defense w o rk an d tap erin g
off to those judged to be strictly
non-essential, w ill be ra te d by
g o v ern m en t agencies in th e o r­
der of th e ir im portance to th e
n atio n al needs of th e m om ent;
(4) T he critical m aterials w ill th e n
be allocated to groups;
(5) The m ore im p o rta n t in d u stria l
groups w ill be assigned a ra te
of p roduction based on th e m a­
te ria ls to w hich th e y are judged
to be entitled.
It is to be doubted th a t th is system
w ill becom e all-inclusive or th a t p ri­
orities as such w ill be com pletely
abandoned. No system w ill be perfect
no r w ill an y system please everyone
concerned. H ow ever, a system of allo­
cations w ill certain ly re p re se n t an ad­
vance beyond th e p re se n t chaotic s it­
uation.
M eanw hile, ev ery u n it in th e b u si­
ness w orld w ill come to be judged by
its relativ e im portance and co n trib u ­
tion to th e n atio n al effort, concen­
tra te d and o rien ted as it is, on our
w orld com m itm ents. Only secondary
consideration w ill be given to such
im p o rta n t social co n trib u tio n s as th e
em ploym ent of labor, th e p ay m en t of
w ages to capital, and th e b uilding and
m ain tain in g of our in d u stria l plant.
These are n o t academ ic problem s to
be passed off w ith fine w ords. A lready
m any, m an y m an u factu rers, d istrib u ­
to rs and even re ta ile rs are face to face
w ith th e q uestion of survival. T h eir
a lte rn a tiv e s w ould seem to be:
(1) F in d in g new or su b stitu te m a­
terials;
(2) A dap tatio n to defense w o rk —or
(3) S uspension of operations.
U nfo rtu n ately , as you are aw are,
th is dilem na falls m ost heav ily on th e
sm aller business e n te rp rise s w hich
often have specialized products, re la ­
tively high costs, and facilities not
read ily adaptable to o th er products,
including those in dem and u n d e r th e
defense program . It is n o t easy to be
optim istic abo u t th e prospects of th is
group, y e t I believe we are in dan g er
of reach in g a fixed and inflexible view
of th e ir fate. T hey are fighters and
th e y are resourceful. M any of th em
w ill find a w ay of surviving.
Not only supplies of critical m a te ­
rials cause concern in in d u stry and

NEWS

•

business—th ere is th e problem of in ­
adequate supplies of p roperly train ed
and disciplined labor. The m a rk e t for
labor, if you w ill accept th e term , is
rap idly becom ing a seller’s m ark et
and, in m any industries, th e cost of
labor is all im p o rtan t in determ ining
th e m argins upon w hich a business
stan ds or falls. T he problem s in th is
field are varied and com plex because
of in terrelatio n w ith o ther factors,
such as, th e com petition of high
w ages in areas of co ncentrated de­
fense effort, th e degree of skill—hence

train in g —required, etc. L abor is an
elem ent bearing close w atching, p a r­
ticu larly in those fields w here labor
costs are an im p o rtan t factor in total
costs and w here m a rk e t conditions
are such as to m ake difficult, if not
im possible, th e passing on in price of
increased costs.
These phenom ena are not unm ixed
blessings for the business m an. Tem ­
porarily, b ut by no m eans evenly, th ey
m ay m ean increased profits b u t even­
tu ally for all, and alm ost im m ediately
for some, th ey m ean low ering m argins

CONDENSED STATEM ENT OF CONDITION
DECEM BER 3 1 , 1 9 4 1
A SSETS
C ash and D ue fro m B a n k s ....................................................................................................
L o a n s a n d D is c o u n ts ................................................................................................................
U . S. G o v ern m en t B o n d s .........................................................................................................
S ta te , C oun ty, and M u n icip a l B o n d s ...............................................................................
O th er B on d s & S e c u r itie s ......................................................................................................
S to ck s in F ed era l R eserv e B a n k ........................................................................................
B a n k B u ild in g , F u rn itu re and F ix t u r e s ........................................................................
O th er A ss e ts ................................................................................................................................

$3,176,603.09
3,225,336.02
862,509.50
349,538.85
322,499.05
17,400.00
180,000.00
10,791.91
$8,144,678.42

L IA B IL IT IE S
C ap ita l ..................................................................................................................... $400,000.00
S u rp lu s
.................................................................................................................. 200,000.00
U n d iv id ed P r o f i t s ...........................................................................................: .
16,121.92
R eserv e fo r C o n tin g e n c ie s ............................................................................
41,000.00

657,121.92

R eserv e fo r T a x es and I n t e r e s t .........................................................................................
O th er L i a b i l i t i e s .........................................................................................................................
D ep o sits .........................................................................................................................................

11,120.35
113.00
7,476,323.15
$8,144,678.42

A. G. Sam, President
J. P. Hainer, V ice President
J. R. Graning, Assistant Cashier
Fritz Fritzson, V ice Pres, and Cashier E. A. Johnson, Assistant Cashier
J. T. Grant, Assistant Cashier
W. F. Cook, Auditor
M E M B E R F E D E R A L D E P O S IT I N S U R A N C E C O R P O R A T IO N

IN

S IO U X C IT Y
Northwestern Banker


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

January 19^2

68

• IOWA
w hich cannot be supp o rted w h en vol­
um e once again recedes. T hey pose an
im m ediate dilem m a for those u n its in
business w hich cannot pass on th e
risin g costs and you w ill find m any
types of business in th is category.
Increasin g in v en to ries an d risin g
prices also p re se n t a nice problem be­
cause of th e elem ent of tim ing. B uying
ahead is sound in su ran ce if th e m a rk e t
holds up an d it is sh eer speculation if
the m a rk e t does n o t hold up. In o th er
w ords, it becom es a case of being
“dam ned if you do and dam ned if you

NEWS

don’t.” The only advice th a t can be
b ro u g h t to bear is a p t to sound trite
b u t it consists of th e adm onition to
keep y o u r policies extrem ely flexible
and to avoid th e excesses th a t follow
in th e w ake of optim ism borne of
p re se n t prosperity.
W hile increasing in v estm en ts in in ­
v en to ry are risk y enough, th e y are apt
to be unavoidable to a certain degree.
A fa r m ore serious problem is p re ­
sented by increasing in v estm en ts in
p la n t and equipm ent because of the
increased im portance of th e elem ent

MISSISSIPPI VALLEY
TRUST COMPANY
ST. LOUIS, MISSOURI
Statement of Condition, December 31, 194-1
RESO U RCES
C ash an d d u e fro m b a n k s..........................................................$ 51 ,110,813.47
U S. G o v ern m e n t S e c u ritie s.................................................
30 ,354,081.31
(In c lu d in g th o se p led g ed $14,470,455.35)
In v e s tm e n t in M ississip p i V alley C om pany, w holly
ow ned su b sid ia ry , c o n sistin g of o b lig atio n s
of U . S. G o v e rn m e n t...............................................
,800,000.00
B onds a n d O th e r S e c u ritie s...................................................
,632,222.48
F e d e ra l R ese rv e B a n k S to c k ............ ....................................
240,000.00
L o an s an d D isc o u n ts..................................................................... 52 ,399,430.78
C u sto m e rs’ L ia b ility on A ccep tan ces an d
L e tte rs o f C re d it.....................................................
170,724.72
R eal E s ta te ...............................................
965,993.10
A ccru ed E a rn in g s R eceivable (N e t).
223,428.31
O v e rd ra fts ..................................................
3,111.04
O th e r R esou rces ......................................
69,003.65
$145,968,808.86

L IA B IL IT IE S
C a p ita l .................................................................................;..... ...... $ 6,000,000.00
S u rp lu s an d U n d iv id ed P ro fits .................................................
3,788,906.99
A ccrued In te re s t, E x p e n se s a n d T a x e s P a y a b le
(N e t) a n d O th e r R e se rv e s................. ......................
821,533.17
A ccep tan ces a n d L e tte rs o f C re d it..........................................
170,724.72
O th e r L ia b ilitie s ........................................................................
10,847.37
D e p o s its :
U . S. G o v ern m en t, C ity o f St.
L ouis a n d o th e r P u b lic F u n d s....$ 8,120,889.75
O th e r D ep o sits ................................... 127,055,906.86
135,176,796.61
$145,968,808.86

M em ber F ed eral D ep o sit
In su ran ce C orporation

CjCt.

^

^

N o rth w estern B an ker


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

^

^

J a n u a r y 1942

•

87 Y ears of
B an k in g E xp erien ce

yZ

^

Z'- ^

^

of tim ing. In v entories ten d to be used
up in a relatively sh o rt period of tim e
even in periods of recession, b u t p la n t
facilities can be used up only over
com paratively long periods of tim e.
In v en to ries m ay be specialized to a
considerable degree and, therefore, n ot
readily m arketable in all circum ­
stances—plants, on th e o th er hand,
are alm ost in v ariab ly specialized to
th e point th a t th ey are m ark etab le
only in periods of u n u su al business
activity. These co n trasts betw een th e
n a tu re of in v en to ry and th e n a tu re of
p lan t serve to point th e chief financial
problem involved in a tim e of ex pand­
ing economy. W hen recession again
sets in, th e debts of th e expansion
period form th e one elem ent in a
financial situ atio n w hich does not
shrink. W ith profits tu rn e d into losses,
assets m u st be used to sh rin k debts
and here w e come to th e cen tral p ro b ­
lem of having assets th a t can be used
to pay debts and m eet deficits w h en
th a t tim e arrives. A n over-all p ictu re
of th e p lan t expansion by p riv ate in ­
d u stry so far u n d e rta k e n u n d e r th e
“W ar Econom y—1941 V ersion” is n ot
available. It is th e g eneral im pression
or, a t least, m y guess th a t business
m en have dealt w ith th is problem in
conservative fashion so far although
this problem , like m any o thers of th e
period, has no positive an sw er and, in
fact, is still squarely before us.
F inally, th e v ery large question of
price controls is up for consideration
and on th is question th e re is being
b ro u g h t to bear th e processes typical
of dem ocracy in governm ent. Con­
tro llin g prices, or ra th e r placing an
u p p er lim it on prices, is a t once th e
m ost im p o rtan t economic problem and
th e m ost dangerous political problem
to be faced by those responsible for
our economic and political w elfare in
th e fu tu re. The risin g spirals of infla­
tion set in im m ediately w ith th e im ­
pact of w artim e spending on a free,
or even p artially free, economy. As
dem and tends to exceed supply,
w h e th e r it be for goods or services,
th e price goes up. B ut increased in ­
come to th e seller of goods or services,
due to risin g prices, m eans increased
expense to th e b u y er of goods and
services, and all sellers h appen to be
bu y ers sooner or later. So as to th e
b u y er finds his costs raised he, as a
seller, in tu rn , raises, or a ttem p ts to
raise, his price. T his process gives
rise to th e ap t expression of spiraling.
T h at it m u st be controlled, if n ot
stopped, is evident to everyone a t all
fam iliar w ith th e fu n d am en tals of
economics. B ut how to effect th is con­
trol, and m ore especially, how fa r

69

—•
apply it and to w hom is a question
m ore political th a n economic. A nd
th a t is w h ere w e are stalled now w ith
all of th e v e ry m an y political consid­
eratio n s v e ry th o ro u g h ly m ixed up
w ith those considerations of strictly
econom ic significance. A bout all we
can do a t th is tim e in o u r th in k in g on
th e su b ject of prices and th e ir control
is to realize th a t m ore an d m ore con­
tro ls w ill have to be evolved.
B ut of one th in g w e can be sure,
an d th is applies to all action in th e
sp h ere of th e g o v ern m en t—a serious
a tte m p t—if n o t too successful a n a t­
te m p t—w ill be m ade to control all
tho se excesses recognized to be w ith in
th e lim its of political experience.
In m y original o utline of th ese r e ­
m a rk s on th e c u rre n t bu sin ess scene
I w as tem p ted to conclude w ith th e
b rie f sk etch ju s t m ade concerning th e
role of o u r g o v ern m en t in dealing w ith
o u r problem s of th e n e a r te rm fu tu re.
B ut upon m ore m a tu re reflection, it
becam e ev id en t to m e th a t w aitin g for
th e long-arm of th e F ed eral G overn­
m e n t to reach out and give th e n e x t
signal is a te m p ta tio n to w hich A m eri­
cans should n ev er yield in th e d irec­
tio n of th e ir system of in dividual e n ­
te rp rise . To cooperate w h o leh earted ly
and unselfishly is th e d u ty of all of us
w ho believe in D em ocracy b u t to look
to o u r g o v ern m en t for th e solution of
ou r ow n individual problem s is to
in v ite th a t v e ry encro ach m en t of po­
litical pow er w hich spells th e doom of
Dem ocracy.

Reserve Member
T he City S tate B ank, Ogden, Iowa,
has been ad m itted to m em bership in
th e F ed eral R eserve System . T he of­
ficers of th e b an k are: W. R. Shurtz,
Jr., p resident; H. L. Bass, executive
vice p resident; A rnold Boehm , cashier;
H. A. Boehm , a ssista n t cashier; L. A.
Good, a ssista n t cashier, and O. D.
B raker, auditor.

Clinton County Winners
T he cattle feeders of C linton county,
Iowa, p ractically w alked aw ay w ith
th e re c e n t In te rn a tio n a l in Chicago,
according to H. G. K ram er, vice p resi­
d e n t of th e City N ational B an k of
Clinton. T he follow ing are th e of­
ficially an nounced achievem ents of
C linton county feeders in th e 1941
show:
George Schm idt of D elm ar an d F re d
Schm idt of D eW itt, k n o w n as Schm idt
Bros.—Show ed g ra n d cham pionship
load (15 A berdeen-A ngus anim als) in
an n u a l fa t cattle carlo t contest.
A stounded crow d w ith th is accom-

IO W A

NEWS

• -

p lishm ent, th e th ird consecutive g ran d
cham pionship in th re e years, and th e
fo u rth g ran d title in five years.
Leo Duer, Sr., C harlotte—E lected
p resid en t of th e S h o rth o rn Club of
A m erica du rin g th a t organization’s
convention.
Jo h n M ommsen, Miles—F irs t for
lig h t A ngus steers and first for heavy
A ngus steers in carlot com petition.
W in ner of o th er top-notch aw ards, in ­
cluding tw o seconds and th ree thirds.
Otto V. B attles of M aquoketa and
Yakima, W ash.—F irs t prize w ith

Jero m e’s Queen 722nd A, an d w in n er
of m any o th er high-ranking aw ards
in A ngus breeding classes of In te rn a ­
tional.
D ilm an W ilson, B ry an t—Second on
m edium -w eight load of H erefords in
carlot contest.
A lfred M om m sen an d Son, Goose
Lake—T h ird for m edium -w eight H ere­
fords in carlot contest.
Jarg o Bros., Teeds Grove — “In
m oney” w ith light-w eight A ngus in
carlot contest.
Leo D uer, Jr., C harlotte—Second

C o n tin en ta l I llin o is
N a tio n a l Bank
a n d T rust C om pany
OF CHICAGO

Statement of Condition, December 31,1941
RESOURCES
Cash and Due from B an k s.................................... $ 656,448,462.95
U nited States G overnm ent O bligations,
D irect and F ully G uaranteed...........................
724,258,158.91
O ther Bonds and S ecu rities..................................
68,927,395.19
Loans and D iscou n ts................................................
284,763,260.90
Stock in Federal R eserve B an k .........................
3,000,000.00
C u stom ers’ Liability on A c cep ta n ces..............
536,859.15
Income Accrued but N o t C o llec ted ..................
2,854,463.89
Banking H o u s e .........................................................
12,000,000.00
Real Estate O wned other than Banking H ouse
1,996,261.10
$1,754,784,862.09

liabilities
D e p o s its.......................................................$1,616,430,112.16
A c c e p ta n c e s...............................................
536,859.15
Reserve for T axes, Interest and E x p e n s e s .. . .
5,721,008.35
Reserve for C o n tin g en cie s...................
17,233,017.17
Income C ollected but N o t E arned.
469,172.09
C om m on S to c k ..........................................
50,000,000.00
Su rp lus..........................................................
50,000,000.00
Undivided P rofits.....................................
14,394,693.17
$1,754,784,862.09

U n i t e d S ta te s G o v e r n m e n t o b lig a tio n s a n d o t h e r s e c u r i ti e s c a r r ie d
a t $202,333,292.78 a r e p le d g e d to s e c u r e p u b lic a n d t r u s t d e p o s its
a n d fo r o t h e r p u r p o s e s a s r e q u i r e d o r p e r m i tt e d b y law

Member Federal Deposit Insurance Corporation

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Federal Reserve Bank of St. Louis

J a n u a r y 19 b 2

70
and fifth for S h o rth o rn steers 900 to
1,050 pounds in ju n io r steer com peti­
tion. “In m oney” in tw o breeding
S h o rth o rn classes. W in n er of $75 from
B artholom ay fund.
W ilbur Koch, Miles — T h ird for
S h o rth o rn steers 1,050 pounds and u n ­
der 1,150 pounds.
Schm idt Bros.—G rand cham pion
carload of beeves auctioned a t $30.75
per cwt. or n early 31 cents, a pound
live-weight, to to tal $5,021.
Jo h n M ommsen, M iles—One firstprize A ngus lot sells for $17.50 per
cwt.
L aw rence Naeve, Clinton, R obert
Schm idt, D elm ar, and Lyle Kem m is,
P rop h etsto w n , 111.—Receive top price
for C linton area, $16 p er cwt., in ju n io r
baby beef sale.
H. E. W ilkinson, D eW itt — “In
m oney” in H ereford breeding cattle
contest.

New Charter Granted
W ith a 20-year c h a rte r to do b u si­
ness as a ban k in g in stitu tio n in th e
state of Iow a expirin g J a n u a ry 1, 1942,
th e State B ank of Allison is beginning
th e new year w ith a renew ed 20-year
c h a rte r g ran ted by th e state ban k in g
d ep artm en t of th e state of Iowa.
M eeting last m o n th in th e p arlo r of
th e bank, th e directors selected two
new directors, George L. A rnold and
C. H. W ild, to succeed W. C. Shepard
and C harles A. Toll. Mr. A rnold w as
also chosen vice p resid en t of th e bank.
Hold-over d irectors include O. L.
W hitlatch, p resident; W ilford Nelson,
cashier, and Jo h n M cW hirter, assist­
a n t cashier.
The capital stock of th e corporation
is $50,000, w ith a su rp lu s of $25,000.

The 4 P’s of Public Relations
(C ontinued from page 24)
im p o rtan t because each m em ber of the
staff typifies th e b an k to his friends
and to those w ith w hom he comes in
contact. O utsiders are prone to form
th e ir opinions by th e im pressions
gained th ro u g h such contacts.
O ften such little details as im proper
a tte n tio n to telephone calls com ing
into th e b an k creates an unfavorable
im pression w hich w ill be difficult to
correct. One th in g of p rim ary consid­
eration th en is to see th a t th e casual
actions of em ployes are not checking
th e developm ent of a favorable public
sentim ent.
It should be realized th a t contacts of
em ployes w ith th e public are generally
m ore num erous th a n th e contacts of
officers. The public has continual di­
rect contact w ith th e em ployes at the
te lle rs’ w indow s and these contacts are
ju st as num erous in th e ir activities
outside th e bank. T he teller w ith
p leasant w ays and cheerful m an n er
can be of m aterial help to his b ank
w hile th e teller w ho is u n p leasan t and
th o u g htlessly rude w ill create th e im ­
pression th a t such is the general a tti­
tude of th e bank.
It is im portant, too, to pro p erly in ­
stru c t th e em ployes concerning th e
com m ents th ey m ake in th e ir hom es
and am ong th e ir acquaintances. Are
th ey able to give in telligent answ ers
to o rd in ary questions concerning the
banking business? If some action of
th e ir b ank or some question concern­
ing b an king generally is m isrep re­
sented and u n ju stly criticized, are th ey

Out-of-Town Banks
O ut-of-tow n banks and bankers w ill find here
com plete banking fa cilities for prom pt and
economical handling of accounts in Chicago. We
would appreciate the opportunity o f serving you.

C

it y

N

a t io n a l

AND

TRUST

2 0 8

S O U T H

COMPANY

B

of Chicago

L A S A L L E

(Member Federal Deposit Insurance Corporation)

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Federal Reserve Bank of St. Louis

J a n u a r y 19 b 2

a n k

S T R E E T

sufficiently inform ed so th a t th ey m ay
give reasonable explanations?
T he custom ers relations “ta lk ” se­
ries, available th ro u g h th e Public Re­
lations Council of th e A m erican B ank­
ers A ssociation, has been specifically
designed to educate th e b an k staff in
th is im p o rtan t public relations func­
tion. E xperience has proven th e series
to be an effective m edium for staff
instructions.
It is necessary th a t the staff m em ­
bers are p roperly train ed and in ­
stru cted in b anking fundam entals. Be­
yond th a t th ey should know som ething
about th e th eo ry of th e law and th e
econom ics of banking. J u s t as th e
law yer and th e doctor are consulted
because of th e ir know ledge of law and
of m edicine, so does th e public w a n t its
b ankers to know m ore about th e b an k ­
ing business th a n it does.
The A m erican In stitu te of B anking
furn ish es th e m eans for specialized
train in g th ro u g h its local chapters,
stu d y group classes, and correspond­
ence study. The courses w hich are
w ritten especially for b an k ers cover
every field and phase of th e ban k in g
business, as w ell as th e associated law
and economics. E v ery em ploye should
be encouraged, directed, and assisted
to avail him self of th e o pportunities
p resented by th is educational program .
To secure such tra in in g is at tim es
m ore difficult for th e co u n try b an k er
th a n it is for ban k ers located in cities
su p p o rtin g a local A. I. B. chapter.
The stu d y group, th e stu d y class and
correspondence stu d y are th e m ethods
p resen tly available in sm aller com­
m unities. T he form er tw o are to be
p referred because of th e personal con­
tact and discussion created th ro u g h
association w ith o ther b an k ers in
classw ork, and because of th e benefits
derived from th e discussions and in ­
terp re ta tio n s of an in stru cto r.
The stu d y group or th e stu d y class
are not difficult to organize and full
details on procedure m ay be secured
th ro u g h the various state association
secretaries or by w ritin g th e national
office in New York.
A course en titled “B uilding B usiness
for Y our B ank” (to m ention b u t one of
m any good sources available) is avail­
able th ro u g h th e Public R elations
Council of th e A m erican B ankers Asso­
ciation. It is based on th e experience
of m ore th an 200 banks w hich have
been conspicuously successful in sell­
ing bank services. T he course is de­
signed for use in staff conferences or
in individual study. It is accom panied

71

• IOWA
w ith an in stru c tiv e m an u al for confer­
ence leaders. It is designed to ac­
qu ain t th e staff w ith th e bank, to stim ­
ulate its in te re st and loyalty, and to
in sp ire all to cooperate in building
m ore b u siness for th e ir bank.
The em ploye’s tra in in g should be so
effective th a t he w ill be able to grasp
th e full significance of his b an k as a
com m unity e n te rp rise and its relatio n
to th e b an k in g stru c tu re generally.
The m en tal reactio n on th e em ploye’s
p a rt should re su lt in an ap preciation
tow ard a m anag em en t w h i c h is
thoug h tfu l. The psychological value
of such a p ro g ram w ill increase th e
am bitious em ploye’s good opinion of
him self and m ake him m ore w o rth y of
the good opinion of others.
Such a co n stru ctiv e p ro g ram of staff
tra in in g and im provem ent w ill be of
great value in creatin g th e g eneral im ­
pression th a t “th e folks in th is b an k
know w h a t it’s all abo u t.” A nd th a t
is a good idea to im p lan t in th e public
m ind.
W hile giving th o u g h t and a tte n tio n
to p ro p er tra in in g and im pro v em en t of
personnel, we should n o t overlook the
“esp rit de co rp s”—th a t im p o rta n t loy­
alty of th e staff to its bank. A p ow er­
ful factor often overlooked is th a t th is
loyalty m u st p erm eate th e o rganiza­
tion from th e top down. The em ­
ploye’s in te re sts and w elfare should be
a m a tte r of deep concern to th e execu­
tive m anagem ent. T he degree of loy­
alty show n by th e em ployes w ill be in
direct pro p o rtio n to th e consideration
they receive. The degree of e n th u si­
asm exem plified is an im p o rta n t fea­
tu re quickly recognized by th e public
on w hom it h as a lastin g influence.
Good w o rk in g conditions are im por­
tant. Item s such as good lighting, air
conditioning, m odern eq uipm ent and
com fortable q u a rte rs w ill have a direct
bearin g on th e efficiency and general
disposition of th e staff. I t is recog­
nized th a t th ese factors w ill fluctuate
w ith th e size of th e b an k and its loca­
tion. The staff, nonetheless, deserves
th e best th a t th e b an k can afford. It
should be rem em bered, too, th a t the
public likes to do b u siness u n d e r pleas­
a n t su rro u n d in g s in a m odernized
ban k in g home.
S alaries an d prom otions, especially
in th e larg er c o u n try banks, are som e­
tim es focal poin ts of discontent. A
sound, justifiable policy in th is m a tte r
is absolutely necessary. I t should be
based on ab ility an d m e rit w ith fair
and im p artial application. If th is p ro b ­
lem is given due consideration, its solu­
tion on a sound basis is an im p o rtan t
fo rw ard step in good em ploye re la ­
tions.

NEWS

•

The M anual of P rocedure in Con­
stru c tiv e C ustom er R elations (avail­
able from th e P. R. Council, A. B. A.)
stresses th ree points w hich I w ould
like to m ention. The first is to “u n d e r­
stan d and to know yo u r bank; th a t is
basic in all custom er relatio n s”; th e
second is “to know w hen to talk and
w hen not to talk about y o u r b ank and
about b an king in g en eral”; and the
th ird “th e sp irit in w hich you ren d er
a service is quite as valuable as the
service itself.” If these points are
clearly understood by the b a n k ’s p e r­
sonnel and practically applied, the

b a n k ’s public relations program w ill be
in safe hands.

Policy
W ebster defines policy as being “a
settled or definite course or m ethod
adopted and followed by a governm ent,
in stitution, body, or individual.”
A b a n k ’s policy, then, is th e m ethod
w hich it has adopted and the definite
course it follows in th e conduct of its
business. It is th e ch arted course
w hich th e m anagem ent follows to m eet
its th ree m ajor obligations, nam ely, to
m eet prom ptly and fully th e dem ands

(ommerce]rust (ompany
18-1
Established 1865
K ANSAS CITY, MISSOURI
M ember Federal Reserve System

Statem ent of Condition at Close of Business Decem ber 31, 1941
RESOURCES
Cash and Due from Banks_______________________ $90,505,255.32
U. S. Obligations, Direct and Fully Guaranteed— 40,929,131.05

$131,434,386.37

State, M unicipal and Federal Land Bank B onds— 20,915,211.65
Stock of Federal Reserve Bank----------------------------

300,000.00

Other Bonds and Securities______________________

10,404,762.04

31,619,973.69

Loans and D iscounts--------------------------------------------------------------

67,876,542.39

Bank Prem ises and Other Real Estate O wned---------------------------

2,243,242.72

Customers’ Liability Account Letters of Credit-----------------------

13,150.00

Accrued Interest R eceivable_______________________

283,263.00

Overdrafts ___________________________________________________

6,034.04

Other Resources ---------------------------------------------------------------------

2,679.08

Total R e so u r c e s__________________________________________

$233,479,271.29

LIABILITIES
D e p o s it s _____________________________________________________
Capital

$220,056,739.28

__________________________________________ $6,000,000.00

Surplus __________________________________________ 4,000,000.00
U ndivided Porfits _______________________________ 3,330,607.37

13,330,60 u37

Liability Account Letters of Credit-------------------------------------------

13,150.00

Accrued Interest, Taxes and Expense----------------------------------------

78,072.40

Other L iabilities --------------------------------------------------------------------

702.24

Total L iabilities _________________________________________

$233,479,271.29

M e m b er F e d e r a l D e p o s it In su r a n c e C orp oration

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Federal Reserve Bank of St. Louis

J a n u a r y 19 b 2

72

• IO WA
of depositors, to satisfy th e credit
needs of th e com m unity served, and to
earn a fair re tu rn for th e stockholders.
T he resp onsibility for th e adoption
of sound b anking policies re sts upon
th e d irectors and executive officers.
The judicious execution of these poli­
cies is by th em e n tru ste d to th e officers
and em ployes. I t is im perative, th e re ­
fore, th a t th e b a n k ’s policies are defi­
nitely o u tlined an d th a t th e b a n k ’s
staff is fu lly inform ed as to th e ir
natu re.
You have no doubt h eard th e phrase
“I like th e ir w ay of doing b u sin ess”
expressed m an y tim es. If th e public
u n d erstan d s y o u r w ay of doing b u si­
ness and y o u r w ay of doing business
is based on sound, co n stru ctiv e policy
fairly and im p artially adm inistered,
th en th e public w ill have confidence in
yo u r ab ility and in y o u r desire to give
it th e type of service w hich it requires.
A sound policy should tak e cogniz­
ance of th e perso n n el factors p rev io u s­
ly discussed. It should au g m en t these
factors by stim u latin g th e in te re st of
its directors in an en th u siastic prom o­
tion of new b an k in g business. The di­
recto r u su ally has m an y connections
w hich can be of positive value for new
business and for th e ex tension of p u b ­

NEWS

lic good will. T he directors should be
fully advised so th a t th e y really know
and u n d erstan d ju s t “w h at really
m akes th e w heels go ’ro u n d ” in th eir
ow n institu tio n . T hey should know
som ething about how th e v arious de­
p a rtm e n ts of the b an k function, and
about th e n u m ber and v arie ty of serv ­
ices w hich are available to p resen t and
prospective custom ers. T he directors
can be of im m easurable service to th e ir
b an k if th ey rem em ber it in th e ir
ev ery d ay business and social contacts.
A sound policy should include offer­
ing th e types of b an king service w hich
th e com m unity needs. A b a n k ’s serv ­
ice functions m u st keep ab reast of th e
tim es so th a t b an k in g ’s legitim ate busi­
ness is not tak en over by outside com­
p etitiv e sources.
R ecent developm ents, some of w hich
w ere once frow ned on by com m ercial
ban k ers, are personal loans, consum er
credit financing, m ortgage and term
loans, pay-as-you-go checking accounts,
accounts receivable financing, C hrist­
m as Club accounts, school savings,
tr u s t services, and now th e various
form s of defense con tract financing.
All of these and o th er services m ay not
be desired or p ractical in every com­
m unity. T h at is som ething for th e

SECURITY NATIONAL BANK
SIOUX CITY. IO W A
Statem ent of Condition D ecem ber 31, 1941
ASSETS
Cash on Hand and on Deposit with B a n k s..........................................$4,560,180.37
United States Government Securities . . .
. . . .
976,809.75
Bonds and S e c u r i t i e s .............................................................................
33,133.80
Loans and D isco u n ts.............................................................................
4,002,014.22
Security Bank Building,Vault and F ix tu res............................................
162,500.00
Federal Reserve Bank S t o c k ...............................................................
15,000.00
Other A s s e t s ...........................................................................................
231.16
$9,749,869.30

LIABILITIES

C a p it a l........................................................................................................ $ 250,000.00
S u r p l u s ..................................................................................................
250,000.00
Undivided Profits and R e s e r v e s .......................................................
21,844.84
D e p o s i t s .....................................................................
9,228,024.46
$9,749,869.30
Member Federal Deposit Insurance Corporation

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J a n u a r y Î9J2

•
how ever, be rem em bered th a t in th e
p ast th e possibilities for m any m odern­
ized services w ere overlooked u n til
com petition ponted th e way.
m anagem ent to determ ine. It should,
T he loan and inv estm en t policy m u st
be sound and definite. I t should be
based on th e ability to give pro m p t
decisions on loan applications. If th e
cu sto m er’s req u est cannot be g ran ted
he should be told fra n k ly w hy. F rie n d ­
ly counsel and suggestion as to th e
best course for him to p u rsu e w ill re ­
su lt in keeping friendly contact w ith
him.
T he loan policy should include th e
settin g up of adequate credit records
for th e b a n k ’s custom ers, both p re se n t
and potential, in a cen tral credit file
w here th ey w ill be quickly available to
th e loaning officers. T his is a m a tte r
w hich is often passed over by th e coun­
try b an k w here in some cases th e offiecrs carry th e credit inform ation “in
th e ir head.” T his type of credit sys­
tem cannot m eet th e dem ands of p res­
en t day banking. Complete and m od­
ern credit records are im portant. A
m ethod to be used and followed in
th e ir in stallatio n has been outlined by
th e B ank M anagem ent Com m ission of
th e A m erican B ankers A ssociation. I t
is available to all m em ber banks. A
b a n k ’s success in its loaning activities
is dependent to a large degree on th e
ex ten t of th e im m ediately available
credit inform ation at its disposal.
A ctive solicitation for loans is now
replacing th e old tim e m ethod of h a v ­
ing th e b o rro w er solicit th e bank.
Such solicitation cannot be effective
w ith o u t th e assistance of com plete
credit inform ation.
An exam ple of an addition to b a n k ­
ing policy w hich co n trib u tes to build­
ing public good w ill is th e system of
using life insurance to cover th e b a n k ’s
borrow ers. F o r a sm all m o n th ly fee
p er $100 of coverage, th e insu ran ce
com pany pays off th e note a t death and
relieves th e b o rro w er’s dependents or
estate of th is obligation. A canceled
note and m ortgage presen ted to a
w idow u n d er such circum stances is a
p o ten t good w ill builder.
The in v estm en t policy should give
full consideration to th e creation of a
liquid secondary reserve of securities
and should be carried out by som eone
having adequate know ledge of th e se­
curities m arkets. Such an individual
m u st be available to give pro p er a tte n ­
tion to all req u ests for inform ation a n d
advice. If it cannot be given, a rra n g e ­
m ents should be w illingly m ade to se­
cure th e inform ation u n d er p ro p er
conditions.

73

•
N ew bu sin ess developm ent, public
relations, em ploye relations, ro u tin e
details, an d all th e factors w h ich e n te r
into th e daily b an k in g o perations are
based on a policy w h ich is eith e r
plan n ed or tak es shape th ro u g h p rece­
d e n t and usage.
T he b a n k ’s cu stom ers w ill sooner or
late r form opinions ab o u t its b an k in g
policies. F ro m custom er opinion to
public opinion is b u t a sh o rt step. A
b a n k ’s re p u ta tio n in th e com m unity it
serves w ill be good or bad in p ro p o r­
tio n to th e e x te n t th a t its perso n n el
and policy factors are good or bad.

Public Education
W ith th e in te rn a l factors of p erso n ­
nel an d policy fully ap p raised and fa­
v o rab ly directed, th e b a n k e r is in a
position to tell his sto ry to th e public.
T his sto ry w ill c a rry w eig h t w ith th e
people in th e b a n k e r’s com m unity if
th e b a n k has earn ed th e re p u ta tio n for
“doing good deeds.” T he b a n k e r in ­
spires confidence in his m essage w h en
he is kn o w n to be p ractical y e t u n d e r­
standing; w h en he is kn o w n to conduct
his busin ess on a sound, co n stru ctiv e
basis; w h en he finds some tim e for u n ­
selfish public service and w h en he u n ­
dertak es educational w o rk in his com ­
m u n ity w hich w ill assist his people to
u n d e rsta n d th e tru e functions of b a n k ­
ing service and its p ro p er lim itations.
T h ro u g h th e m edium of ad v ertisin g
aided by favorable publicity, th e coun­
try b a n k e r opens th e w ay to a frie n d ­
lier, p ersonal feeling b etw een th e peo­
ple of his co m m unity an d h is bank.
T hese are th e p rim a ry aids to assist in
th e developm ent of an enlightened
public a ttitu d e to w ard b an k in g w ith
an accru in g favorable public re p u ta ­
tio n for th e individual com m unity
bank. It w ill accom plish this, how ­
ever, only if it is in tellig en tly o rg an ­
ized an d co n sisten tly directed to w ard
c e rta in definite objectives. T hese ob­
jectiv es m u st be based on sound, fu n ­
d am en tal b an k in g tru th s . The p ro ­
g ram th e n should be tailo red to fit th e
b a n k and th e co m m unity it serves.
The co u n try b an k er has a t his dis­
posal m any typ es of services to aid
him . Two of th e m an y different plans
are o u tstan d in g and th e y are especially
suited to his needs. T hese are th e
v e ry com plete and w ell diversified
services of th e F in an cial A dvertisers
A ssociation and th e Public R elations
Council and ad v ertisin g d ep artm en t of
th e A m erican B an k ers A ssociation.
An exam ple is th e “B anking Looks
A h ead ” series designed for educational
pu rp o ses and available th ro u g h th e
A. B. A. It has been p lan n ed w ith th e
idea of accom plishing certain definite

IOWA

NEWS

•

objectives in th e field of public re la ­
tions. I t is one of th e series available
from m any sources to fill a definite
need for certain types of m aterial p a r­
tic u larly helpful to th e co u n try bank.
N ew spaper, billboard and radio ad­
v e rtisin g m u st be used to keep th e
b a n k ’s nam e continually before th e
public. It should be used consistently
and in good taste. Tangible resu lts
m ay be difficult to trace b u t th e cum u­
lative effect w ill w ork to w ard th e
b uilding and m aintenance of a favor­
able public opinion. T his w ill be tru e,
how ever, only to th e e x ten t and in
d irect p ro p o rtio n to th e effective n a ­
tu re of th e m eans used. By effective
n a tu re I m ean th e q u ality of th e m ate­
rial, its c u rre n t public appeal, its lay­
out and scope, its consideration to com­
m u n ity service, etc. T his type of ad­
v ertisin g is u sually n o t directed to an y
selected group b u t reaches th e great
m ass of th e people.
A m ore selective type is th e direct
m ail m ethod. I t is a definite in v itatio n
to use specific ban k in g services di­
rected to a selected m ailing list of cus­
tom ers and prospective for ban k in g
services. I t is designed to be m ore
effective for specifically desired b ank
m erchandising results, especially for

such services as consum er cred it finan­
cing, personal loans, car loans, safe
deposit and tru s t services.
A dvertising has one q uality w hich
m akes it su p erio r to publicity. T his is
th a t in advertisin g w e know definitely
w h a t we are going to say and th e m es­
sage is directed as planned. Publicity
m ay be m ore fickle and m ay even be
detrim ental. U nless a pro p er u n d e r­
standing of b anking—its problem s and
its lim itations, its services and its
p roper functions—is evidenced, new s
releases m ay often m isrep resen t th e
actual situ atio n s or a t least color them
enough to raise a questionable th o u g h t
in th e public m ind.
The b an k er should n ot hesitate to
cooperate w ith his local new spaper—
be it daily or w eekly—in fu rn ish in g it
w ith inform ative item s of definite new s
value concerning th e bank, its officers,
directors and staff m em bers; its rep o rts
and anniversaries; and its services and
activities. A w illingness to cooperate
w ith th e press w hich th riv es on new s
is essential to m ain tain favorable re la ­
tions. T he new s editor w ill th e n be
m ore likely to consult th e com m unity’s
b an k ers w hen in doubt as to th e au ­
th en tic facts behind th e new s about
b anking or th e com m unity’s banks.

SCHILLER-CABLE PIANO MFG. CO.
OREGON, ILLINOIS

Manufacturers of

THE

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CONSOLE PIANO
A lw ays— everywhere— the name CONOVER has been associated with
brilliant performance, distinctive and remarkable tone. This newest member
of the renowned Conover family has many quality features, one of which
is the sensational Harmonic Tone Amplifier.
THEY BANK WITH

FIFTH AVENUE
SOUTH-226»

NATIONAL

BANK

C & n io n , i9 o tv r i
Member Federal Reserve
System and Federal Deposit
Insurance Corporation

N o rth w estern B an ker


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

J a n u a r y 19^2

74
•

I O W A

N E W S

•

The radio as a m eans of public edu­ p ast h isto ry m any tim es resu lted in
cation is not available to th e m ajority
political reaction. Public d istru st, pub­
of co u n try bankers. W here it is, how ­ lic h earings and reg u lato ry m easures
ever, it m ay be effectively em ployed
have been th e result. It has been re ­
w ith th e aid of splendid tra n sc rip tio n s
peatedly proven th a t cooperative ac­
from the P ublic R elations Council, tion on m atters of m u tu al concern is
A. B. A. O ther pro g ram s m ay be devel­ beneficial to all w ho actively p artici­
oped according to th e co u n try b a n k e r’s pate.
ow n in g en u ity and his co m m u n ity ’s
M erchants in our tow ns and cities
receptive mood.
cooperate th ro u g h a m erch an ts b u reau
E ssay contests conducted by clear­ or sim ilar organization to plan sales
inghouse or state associations have
cam paigns and prom otions, and to take
been v ery effective in m an y sections jo in t action on m atters of com m on
of th e country. T hey stim u late s tu ­ w elfare. U nfair practices are curtailed
dent research in th e b an k in g field and
and a com m on policy on such m atters
create a favorable public opinion. P u b ­ as th e solicitations for public dona­
lic forum s and m eetings have b ro u g h t tions, civic drives, etc., redounds to th e
b an k in g ’s m essage in effective m an n er
m u tu al benefit of all p articip atin g
to m an y th o u san d s of our people. The
tradesm en. Active com petition for the
la tte r have been prom oted successfully
increased business is a n a tu ra l re su lt
by m an y state associations and re ­ b u t in th e end th ey all enjoy some
gional groups.
m easure of increased re tu rn from th e ir
cooperative effort. W e see here a prac­
The co u n try b a n k e r m u st know his
com m unity to plan his public educa­ tical dem onstration of productive co­
o peration—cooperation th a t produces
tion activities so th a t th e y m ay do the
results.
m ost good. He m ay not w ish to use
The task of building and m ain tain ­
all th e m ethods described n o r all th e
ing a favorable public opinion for
m aterial available, and it m ay not be
advisable th a t he do so. T he essential b an k s and b anking w ill be g reatly
stim u lated if b an k ers dem o n strate a
th in g is th a t he m u st constru ctiv ely
genuine in te re st in th is principle of
appraise his com m unity’s ban k in g
opinion and p lan his pro g ram to m eet productive cooperation.
In cities w here active clearinghouse
the tren d . It should be a continuing
program w ith a long range point of organizations are functioning, th e p rin ­
ciple of productive cooperation has
view and it m u st be flexible to m eet
ad ju stm e n t to changing conditions in long been recognized. It has elim i­
th e b an k in g field.
n ated most, if not all, of th e unsound
com petitive practices and has facili­
Productive C ooperation
tated th e grow th of m any new banking
Public reaction to “chiseling” and
services. It has been th e established
u n fa ir com petitive p ractices has in our m eans for active cooperation betw een

Federal Home Loan Bank of Des Moines
Des M oines, Iowa
STATEMENT OF CONDITION IANUARY L 1942
R ESO U R C ES
A d v a n ce s to M em b ers.............................................................................................................................. $19,089,043.25
U . S. G overn m en t O b lig a tio n s an d S ec u r itie s fu lly g u a ra n teed by U . S ..................
3,323,758.93
A ccru ed In te r e s t R e c e iv a b le ................................................................................................................
32,815.36
D eferred C harges and O th er A s s e t s ...............................................................................................
17,352.21
C ash ................................................................................................................................................................
2,421,198.28
$24,884,168.03
L IA B IL IT IE S A N D C A P IT A L
C ap ital S tock S u b s c r ip tio n s ...................................................................................................................$10,440,400.00
*D eb en tu res O u tsta n d in g ....................................................................................................................... 12,500,000.00
P r em iu m s on D e b e n tu r e s ......................................................................................................................
6,098.93
D ep o sits— M em bers an d A p p lic a n ts ...............................................................................................
957,043.65
A ccru ed In te r e s t P a y a b le ....................................................................................................................
33,576.99
D ivid en d s P a y a b le J a n u a r y 7, 1 9 4 2 ..................................................................................................
90,323.26
S u r p lu s :
R eserv es ........................................................................................................................ $654,119.99
U n d iv id ed P r o fits ................................................................. .................................. 202,605.21
856,725.20
$24,884,168.03
* P a r tic ip a tio n in $90,500,000.00 con solid ated F ed eral H om e L oan B a n k d eb en tu res o u tsta n d in g ,
w h ich are th e jo in t an d sev era l o b lig a tio n s o f th e tw e lv e F ed era l H o m e L o a n B a n k s.

N o rth w estern B an ker


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

J a n u a r y 19^2

th e m em ber banks in tim es of stress
and em ergency w hen such cooperation
is an im perative necessity.
T his m ethod of cooperative org an i­
zation is available to banks in sm all
tow ns and in co untry d istricts th ro u g h
w h at is know n as th e regional clear­
inghouse association. Some of th e
states are now well organized along
this line. Such an o rganization af­
fords co untry ban k ers w ith the useful
m eans for constant, progressive devel­
opm ent in m eeting ban k in g problem s
and new and co nstantly changing sit­
uations.
It is a splendid m eans for effectively
in au g u ratin g sound profit producing
policies such as service charges, low er­
ing of th e in te re st rate paid on depos­
its. elim ination of u n sound and even
hazardous banking practices and c u t­
th ro a t com petition, and quite often for
a central clearing point to check on
duplicate borrow ings. It provides the
m eans for jo in t action on such m atters
as banking hours, grow ing and som e­
tim es u n fair outside com petition, and
legislative developm ents. It can b ring
th e b an k ers to g eth er for educational
forum s on problem s of m u tu al concern
relatin g to banking policies and prac­
tices.
The m em bers of th e regional clear­
inghouse association m ay discuss and
act in th e com m on in te re st on m any
m atters of public policy. One of these
m ight well be th e highly controversial
m a tte r of an exchange charge on
checks. I believe th is has m an y hardto-justify qualities leading to public
ill will, b u t space here w ill not perm it
a len g th y discussion.
T he regional clearinghouse associa­
tion is a good m edium for intelligent
discussion—pro and con—of ju st such
practices. U niform ity of procedure
and of com m on practice are essential
goals to avoid public confusion and
m isunderstanding. N othing so h arm s
ban k in g generally as w idely divergent
charges and practices for stan d ard
ban k in g services. If and w hen service
charges are th e re su lt of cooperative
action, th e y should be capable of in ­
telligent explanation. T hey should not
be established on th e basis of “all th e
traffic w ill b e a r” b u t should ra th e r fol­
low th e lines of necessity as adequate
com pensation in th e form of a reaso n ­
able and ju st charge for th e service
rendered. Suggested schedules have
long been available th ro u g h state and
n ational associations.
M any regional clearinghouse associa­
tions have failed to achieve any m eas­
u re of success because of ineffective
leadership, poorly planned program s
and lack of a com m on u n d erstan d in g

75
on th e need and th e goal of jo in t co­
o perative action. P ro g ress w ill n o t be
p e rm a n e n t u n til som ething co n stru c­
tiv e is done in th is respect.
By v irtu e of his position, th e co u n try
b a n k e r is gen erally looked upon as one
of th e leaders in his com m unity. He
should n o t sh irk th e resp o n sib ility for
civic d uties w hich his position creates.
He, of all people, should exem plify th e
policy of “K now Y our C om m unity”
w ith careful a tte n tio n to th e adequacy
of th e public relatio n s pro g ram devel­
oped to m eet th e needs of his in s titu ­
tion.
T he b a n k ’s p ro g ram for its com ­
m u n ity should be a pro g ram to m ake
frien d s and to keep friends for the
b an k and for th e business of banking.
Such a pro g ram involves a helpful in ­
te re s t in public and civic affairs on th e
p a rt of th e b a n k ’s officers, d irectors
and em ployes. It includes personal
calls on old cu stom ers and on p ro s­
pective new ones. It includes an an aly ­
sis and ap p raisal of th e com m u n ity ’s
b an k in g needs and provides th e facili­
ties for prom pt, efficient service. Such
activities w ill do m uch to establish th e
b a n k e rs n o t as hard -h earted b u t as
h um an, frien d ly individuals w hom it is
w ell to kn o w and w ith w hom it is a
p leasu re to do business an d discuss
financial problem s.

F R I E N D L Y
S

E

R

V

I
H.

C
H.

E
X

Come to the Bismarck
for luxurious comfort
... good food ... and
that elusive some­
thing called “friendly
service” that makes
you feel right at home.
Every modern hotel
convenience is here
at your beck and call
. . . and the location
is a time-saving
convenience.
Write for booklet
with map of
downtown Chicago
OTTO K. EITEL, M N G . DIR.

It is im p o rtan t to th e b an k er in his
com m unity and to th e A m erican sys­
tem of b anking th a t such friendly re ­
lations be cultivated and m aintained.
Mass public opinion is b u t th e cum u­
lative re su lt of th e m any individual
opinions in each com m unity. The ef­
fect of m ass public opinion has cer­
ta in ly reflected itself in our banking
p icture of th e p ast decade.
It w ill be th e influence of “the m an
in th e s tre e t” w hich w ill in th e final
analysis decide w h eth er th ere w ill be
an increasing or a decreasing g overn­
m en t particip atio n in th e banking
business. P ro p er cooperation by the
b an k w ith its com m unity—in its af­
fairs and w ith its individuals—w ill in
the end produce a b e tte r com m on u n ­
d erstan d in g w ith continued public
good will.
S um m arizing briefly, a review of th e
events and circum stances w hich con­
trib u te d to th e collapse of the n a tio n ’s
banking stru c tu re in 1933 leads to a
b etter u n d erstan d in g of c u rre n t public
opinion and to a realization of th e need
for continued public relations study of
re su ltin g trends.
To achieve its aim s, as previously
outlined, th e co u n try b a n k e r’s public
relations program m u st be planned
and developed for his com m unity afte r
due consideration to specific fu n d a­
m ental factors. These functional fac­
to rs are based on personnel, policy and
public education—a program planning
appraisal form ula around w hich the
program details m u st be evolved. Con­
sideration of th e fo u rth factor—p ro ­
ductive cooperation—is recom m ended
to set off th e co u n try b a n k e r’s program
as som ething above par.

M ERCHANTS
MUTUAL

BONDING
COMPANY
Incorporated 1933

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

Des M oines, Iowa
•

•

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

•

W rite to

E. H. W ARNER
S ecr eta ry and M a n a g er

Goes to California
H arold C hristm an, w ho has been em ­
ployed as bookkeeper and teller in the
F a rm e rs Savings B ank of P ierson for
th e p ast fourteen m onths, left th a t in ­
stitu tio n about Ja n u a ry 1st to take up
his new duties w ith th e B ank of A m er­
ica in California. Mr. C hristm an origi­
n ally cam e from Ute.

FOR BANKS

Adler's Portrait Unveiled
H ighlighting th e C hristm as p a rty for
officers, directors and em ployes of th e
D avenport B ank & T ru st Com pany last
m onth in th e gold room at H otel Blackhaw k, w as th e unveiling of a p o rtra it
of E. P. A dler w ho served as p resid en t
of th e b an k from th e tim e of its open­
ing on Ju ly 1, 1931, u n til his resig n a­
tion a year ago.
T he p o rtra it w as executed by Leo­
pold Seyffert, leading A m erican p o r­
tr a it p ainter, on a com m ission from
th e officers, directors and em ployes of
th e bank. It now hangs in th e direc­
to rs ’ room of th e bank.

Write for Free Estimates

AND

COMPANY
DES M O I N E S
N o rth w estern B an ker


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

J a n u a r y 19't2

76

• IOWA
V. O. Figge, p resid en t of th e bank,
gave a brief talk follow ing th e dinner,
in w hich he re fe rred to Mr. A dler’s
services in directing th e organization
of th e bank, his years as its president,
and a m em ber of th e board. Mr. A dler
responded.
Follow ing th e unveiling, dancing in
th e gold room w as enjoyed.

Christmas Party
Em ployes of th e F irs t N ational B ank
of Sioux City gave a p a rty last m onth
a t th e W a rrio r H otel for th e em ployes,
officers, d irectors and th e ir wives.
A bout 70 w ere in atten d an ce and a fea­
tu re of th e evening w as a m otion pic­
tu re in color by C. S. V an E aton, one
of th e b a n k ’s directors, w hich he and
his w ife took last y ear on a trip to
G uatem ala. In keeping w ith th e usual
procedure, th e b an k also paid its em ­
ployes a bonus for th e year.
Vice P resid en t and C ashier F ritz
F ritzo n rep o rts “Our activities a t th e
p re se n t tim e are princip ally selling
D efense Bonds, th e call for th em has
been v ery good and we have found
difficulty in keeping a supply on hand
W f R . J . F L Y N N .P re s.

I

D . L . D U N G A N . Secy."

Z ?

Since

àeòMX

l i L

NEWS

to tak e care of th e over-the-counter
trad e.”

Call Trust Certificates
A ccording to a plan w orked out by
th e board of directors of th e Postville
S tate B ank, th e ou tstan d in g tru s t cer­
tificates of th a t in stitu tio n w hich w ere
issued to depositors on May 1, 1933,
w ere called by th e b an k some tim e
d u rin g December. The am ount due on
th ese certificates is approxim ately
$ 100,000 .

In order to advance th e tim e of ta k ­
ing up these tru s t certificates th e stock­
holders of th e b an k consented to a
plan of reducing th e p a r value of th e ir
stock from $50 p er share to $25 and also
selling 1,000 shares of new com m on
stock w ith a p ar value of $25 p er share.
A ccording to this plan th e old stock­
holders w ere given th e rig h t to p u r­
chase th e new stock and th e b ank re ­
p o rts th a t all of the stock has been
sold. By th is m ethod funds have been
m ade available for the tak in g up of th e
tr u s t certificates and still leaves suffi­
cient capital and su rp lu s to m eet all
sta te and F ed eral D eposit In su ran ce
requ irem ents.
A fter th e com pletion of th is new
plan th e bank had th e sam e am ount of
capital and su rplus as at present, $75,000.

I 9 0 7

r

A d v erasin g Co.
1N C .

George Kennedy Dies
George A. K ennedy, 74, b ro th e r of
K arl K ennedy of C herokee and a form-

f r

1

D E S

M

O

•

OFFICE MACHINES

I N E S
J

Addressing Machines . . . Adding Machines
Duplicating

Machines . . . Electro

Copyist

Equipment. . . O zalid W hiteprint Process . . .
Typew riters. . . Ediphone Voice W riting.
FRIDEN CALCULATO RS

er banker, died last m onth at Saratoga,
California.
Mr. K ennedy w as for m any y ears
associated w ith th e C herokee S tate
B ank of Cherokee. At th e tim e of his
death he w as re tire d a fter hav in g
served as vice p resid en t and d irector
of th e C rocker F irst N ational B ank of
San Francisco.

Appointed to Draft Board
W alter T. Robinson, cashier of th e
N ew ton N ational Bank, last m onth
w as appointed by G overnor George A.
W ilson to the Ja sp e r county d ra ft
board, to succeed Roy W. D enniston.
Mr. D enniston tendered has resig n a­
tion Decem ber 1st, to be effective as of
D ecem ber 31st. Mr. R obinson is a v e t­
eran of th e first W orld W ar and has
served as com m ander of th e N ew ton
post of th e A m erican Legion.

Prominent Man Dies
H ow ard V. M artin, 48, secretarytre a su re r of th e T. S. M artin d e p a rt­
m ent store of Sioux City, and d irector
of the Security N ational Bank, died
v ery suddenly of a h e a rt attack at his
hom e in Sioux City last m onth.

Horton Elected President
E lection of H erb ert L. H orton, p resi­
dent of th e Iowa-Des Moines N ational
B ank and T ru st Company, as p resid en t
of th e Des Moines Clearing House
A ssociation, w as announced recently.
W. J. Goodwin w as nam ed first vice
presid en t and F red erick M orrison sec­
ond vice president. F red C. A tkins w as
re-elected secretary.

New Bank Employe
Miss M arjorie Jones, d au g h ter of Mr.
and Mrs. G lenn O. Jones, joined th e
staff at th e A tlantic State B ank last
m onth.

Retires on 44th Anniversary
T.
P. B reheny, vice p resident and
d irector of th e A tlantic State Bank,
re tire d last m onth on th e 44th a n n i­
v ersary of his e n try into the em ploy of
th e bank.

I o w a ’s L a r g e st B u s in e s s T r a in in g S ch o o l

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

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

N o rth w e ste r n Banker

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

January 19'i2

New Vice Presidents
PR INT ER S — BOOKBINDERS
OF F I CE OU T F I T T E R S
S T A T I O NE R S — B U S I N E S S MACHI NES

GRAFIO

AVEÍ1UE

AT

FOUATH

T he P hiladelphia N ational B ank an ­
nounces the election of six additional
vice p resid en ts—George B. K neass,
form erly head of th e in v estm en t ad ­
visory departm ent; Joseph H arrison,
Jr., form erly a ssistan t vice p resid en t
of the G irard T ru st Company; R euben
B. Hall, form erly a ssistan t m anager of

77

• IOWA
th e foreign d ep artm en t; Jam es H.
K ennedy, fo rm erly a ssista n t cashier;
Jo h n McDowell, fo rm erly a ssista n t
vice p resid en t of th e F ed eral R eserve
Bank, and F red eric A. P otts, w ho w as
connected w ith th e new b u siness de­
p a rtm e n t of th e bank.
A ugustus F. Aff an d Lew is M.
C rom pton have been appointed assist­
a n t cashiers.
T he b an k also announces th e re tire ­
m en t of R ene J. Clark, vice president;
D avid W. S tew art, a ssista n t cashier,
and D avid J. M yers, a ssista n t cashier.
The th re e re tirin g officers have each
been w ith th e b a n k for over fifty years.

Chemical Bank, N. Y.
In its sta te m e n t for D ecem ber 31,
th e C hem ical B ank & T ru s t Com pany
re p o rte d deposits of $1,014,109,864, pass­
ing th e billion dollar m ark for th e first
tim e in th e b a n k ’s histo ry . T his re p ­
re se n ts an increase in deposits of $142,454,763 over D ecem ber 31, 1940. T otal
assets of $1,101,728,374, also th e h ig h ­
est in th e b a n k ’s histo ry , com pare w ith
$958,388,741 a t th e close of 1940. Cash
on h an d and due from b an k s am ounted
to $377,335,460, com pared w ith $412,508,661; U. S. G overnm ent obligations
to $321,211,478 a g ain st $219,030,694;
b a n k e rs acceptances and call loans to
$34,218,090 ag ain st $37,663,398; and
loans and discounts to $156,455,076
ag ain st $124,870,570.
Capital rem ain s unch an g ed a t $20,000,000 and su rp lu s at $50,000,000. U n­
divided profits are $9,161,724, an in
crease for th e y e a r of $1,257,009 a fte r
th e u su al a n n u al dividend of $3,600,000
($1.80 p e r sh a re ). The indicated n et
earn in g s on th e b a n k ’s 2,000,000 sh ares
(p ar $10.00) am ounted to $2.43 p er
sh are for 1941 as com pared w ith $2.38
p e r sh are for th e preceding year.

•

m an defeated his only opponent for
th e position, Axel Olsen, secretarytre a su re r of th e St. P aul F ed eral Sav­
ings & L oan Association.

G

G o o d b o d y a n d C o m p a n y ...................................... 32

II
H a w k e y e M u t u a l H a i l I n s u r a n c e A s s n . . 77
H o m e I n s u r a n c e C o m p a n y ..............................
6
I

I n t e r s t a t e F i n a n c e C o r p o r a t i o n .................. 30
Io w a - D e s M o in es N a tio n a l B a n k a n d
T r u s t C o m p a n y .................................................. 80
I o w a S t a t e B a n k a n d T r u s t C o ...................... 66

Index to
Advertisers

J

J a m i e s o n a n d C o m p a n y .....................................
K o c h B r o t h e r s ..........................................................

76

G e o r g e L a M o n t e a n d S o n ...................................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................
L ive S to ck N a tio n a l B a n k — C h icag o . . . .
L i v e S t o c k N a t i o n a l B a n k — O m a h a ..........
L iv e s to c k N a tio n a l B a n k — S ioux C ity . . .

A

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

79
26
S3
76
56

23
76
65
50
40

M
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 75
M e r c h a n t s N a t i o n a l B a n k .................................
2
M i s s i s s i p p i V a l l e y T r u s t C o m p a n y ............. 68
M u t u a l S u r e t y C o m p a n y o f I o w a ............... 2 6

B
B a n k B uilding- a n d E q u i p m e n t C o rp .. . . 5
B a n k e r s T r u s t C o m p a n y ................................52-5 3
H o t e l B i s m a r c k ....................................................... 75
H . B. B u c k h a m a n d Co., I n c .............................. 75

N
N o r t h e r n T r u s t C o m p a n y ................................. 42
N o rth w e ste r n N a tio n a l L ife In s u ra n c e
C o m p a n y .................................................................. 27

C

C e n t r a l N a t i o n a l B a n k a n d T r u s t C o .. . . 10
C h a s e N a t i o n a l B a n k .....................................
3
C h e m i c a l B a n k a n d T r u s t C o m p a n y . . . . 46
C i t y N a t i o n a l B a n k — C l i n t o n .................... 73
C ity N a tio n a l B a n k a n d T r u s t C o m p an y
— C h i c a g o ............................................................... 70
C o m m e r c e T r u s t C o m p a n y ......................... 71
C o m m e r c i a l I n v e s t m e n t T r u s t I n c ....... 31
C o n tin en tal-Illin o is N atio n al B a n k &
T r u s t C o m p a n y .................................................. 69
C o n t i n e n t a l N a t i o n a l B a n k —- L i n c o l n . . . 48
C o u n c i l B l u f f s S a v i n g s B a n k .................... 61

O
O m a h a N a t i o n a l B a n k ........................................

17

P

P h i l a d e l p h i a N a t i o n a l B a n k ............................ 63
P u b l i c N a t i o n a l B a n k a n d T r u s t C o .......... 32
S
S e c u r i t y N a t i o n a l B a n k ...................................... 72
S t o c k Y a r d s N a t i o n a l B a n k — S o u t h St.
P a u l ........................................................................... 38

D

D a v e n p o r t B a n k a n d T r u s t C o ................. 56
D a v e n p o r t a n d C o m p a n y , P . E .............. 48 -5 6
D es M oines B u ild in g , L o a n a n d S a v in g s
A s s o c i a t i o n .......................................
77
D r o v e r s N a t i o n a l B a n k ................................ 54

T

T w in C ity F e d e ra l S av in g s a n d L o an
A s s o c i a t i o n ............................................................ 38
U

U nion
U n ited
U n ited
U n ited

E
E m p i r e N a t i o n a l B a n k a n d T r u s t C o . . . . 39
E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 26

B a n k a n d T r u s t C o m p a n y ...............
S tates C heck B ook C om pany. . ..
S t a t e s N a t i o n a l B a n k .........................
S tates T re a s u ry D e p a rtm e n t. . ..

60
49
44
28

P

V

F e d e r a l H o m e L o a n B a n k ........................... 74
F i n a n c i a l A d v e r t i s e r s A s s o c i a t i o n ...........
4
F i r s t N a t i o n a l B a n k — C h i c a g o ............... 58
F i r s t N a t i o n a l B a n k — S i o u x C i t y .......... 67
F i r s t N a t i o n a l B a n k — St . L o u i s ............ 64
F i r s t N a t i o n a l B a n k — S t. P a u l ............... 36
F ir s t N atio n al B a n k an d T ru st C om pany
— M i n n e a p o l i s ..................................................... 34
F i s h e r C o m p a n y ..................................................... 19

V a l l e y S a v i n g s B a n k ........................................... 59

C

o

z

a

i l n

u

n

s

e

w
W a n t A d s .................................................... 60, 62,
C h a r l e s E . W a l t e r s ................................................
W a t e r l o o S a v i n g s B a n k .....................................
W e l c h , J a y A ..............................................................
W e s s l i n g S e r v i c e s ..................................................
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ..........

l

63
46
62
58
77
24

2 0 th y e a r p l a n n i n g a d v e r t i s i n g p r o g r a m s
fo r b a n k s a n d tr u s t c o m p a n ie s .
M em ber
F in a n c ia l
A d v e r tis e r s
A s s o c ia tio n .

a
o n

B

a

n

k

P

U

b

t

i

c

R

e

l

a

t

i

o

n

s

D. R. W e s s l in g , p r e s id e n t

< ^ A /{o

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

Oldest and Largest
in Des Moines
411 6th Ave.
E L M E R E . M IL L E R
P r e s , and S ec.

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

Member Federal Home Loan Bank System

J lo w e &

ü z e

±, û o u c ra

t G a lt

Our p olicy provides a m axim um
assessment of 2 '/2 % in Zones
One and Two— and 3 !/2 % in
Zone Three (W estern Iow a).

Hawkeye Mutual Hail

Insurance Association
Carver B ld g.

F ort D o d g e, Iow a

N o rth w estern B an ker


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Federal Reserve Bank of St. Louis

38

Iv

Li

Shenk Elected Director
E lection of Jo h n C. Shenk, secretarytre a s u re r of th e F irs t F ed eral Savings
& L oan A ssociation of D avenport, as
a class A d irecto r of th e F ed eral Home
L oan B ank of Des M oines w as a n ­
nounced last m onth.
T he Des M oines in stitu tio n serves
240 m em ber b an k s of th e eig h th dis­
tric t, com prising th e states of Iowa,
M innesota, M issouri and N orth and
South Dakota, as a cred it reservoir,
and occupies a corresponding re la tio n ­
ship to its m em ber b anks th a t F ed eral
R eserve B anks hold in relatio n to com ­
m ercial banks.
Conducted d u rin g th e m o n th of No­
vem ber, th e election is th e re su lt of
votes cast indiv id u ally by th e 240
m em ber in stitu tio n s. T he D avenport

NEWS

J a n u a r y 19J2

78

IN THE DIRECTORS' ROOM
Self-Serve

They Are Burned

A lady had advertised for a girl for
general housew ork, and w as show ing
an applicant over th e house. She had
been v ery liberal in h e r prom ises of
privileges — aftern o o n s off, evenings
out, and so on — and it looked as
though th e tw o w ere about to come to
some ag reem en t w h en th e girl spoke
suddenly: “Do you do y o u r own
stre tc h in ’?”
“Do we do our ow n w h a t? ” asked
the puzzled m istress.
“S tre tc h in ’,” rep eated th e new girl.
“I don’t u n d e rsta n d .”
“S tre tc h in ’,” rep eated th e girl a sec­
ond tim e. “Do you p u t all th e food on
the table at d in n e r and stre tc h for it,
or do I have to shuffle it aro u n d ?”

“Say, pop.”
“Yes, son?”
“I took a w alk th ro u g h th e cem e­
te ry today and I read th e inscriptions
on th e tom bstones.”
“Well, w h a t about it? ”
“Gee, pop, w here are all th e w icked
people bu ried ?”

An Excellent Idea
Some g o v ern m en t officials w ere en ­
gaged on su rv ey w o rk in a c ertain
district. T hey entered th e land of a
farm er, w ho furiously ordered th em
off his farm . T hey show ed him th e ir
blue-paper credentials, and th e farm er,
v ery angry, tu rn e d on his heel and
w ent into an o th e r field.
A m in u te or so later th e ro a r of in ­
fu riated bulls w as heard, and a couple
of h efty anim als to re tow ard s th e s u r­
veyors, w ho had to ru n for th e ir lives.
“Show th em th e blue p ap er!”
shouted th e fa rm e r from a poin t of
safety; “show th em th e blue pap er!”

All Aboard!
An old fa rm e r on being told th a t a
new railro ad w as going to ru n rig h t
th ro u g h his barn, exclaim ed, “Now,
by gum! I guess I ’ll have som ething
to say about th a t. I ’ve got som ething
else to do beside opening and sh u ttin g
them b a rn doors every tim e a tra in
comes along.”

W ant to Chew My G um?
A young h illbilly from an isolated
ran ch bought an ice cream cone,
w alked outside to eat it, th e n carried
th e cone carefully back to th e soda
fountain. H anding it to th e clerk, he
said: “M uch obliged for th e use of th e
vase.”

Right Now!
Sam: “L isten, heah, boy, je s ’ w h at
kind of life you been liv in ’?”
Rastus: “Oh, ordinary, je s’ ordi­
n a ry .”
Sam: “W ell, if y o ’ pulls any m o’
aces out o’ y o u ’ shoe, y o u ’ o rd in ary
life is goin’ to m a tu re .”
Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1942

Flank Movement
D arling, y o u r eyes shine b rig h ter
th a n tracer-bullets. W hen you look
a t me, in cendiary bom bs explode w ith ­
in m e and m y h e a rt feels like the
p lu n g er of a m achine gun. My head
w h irls like an A-le; and I gasp as if
gassed, as I gaze upon y o u r features,
fa ire r th a n a flag of truce. The th o u g h t
of losing you stabs m y h e a rt like
shrapnel. I ’m “holed-up” like a cock­
ney in a G erm an concentration camp,
by y o u r blitzkrieg of am orous w a r­
fare. D arling, m a rry me and be m y
d ra ft exemption!

O r An Escalator Step
In th e days of yore, if anybody
m issed a stage-coach, he w as contented
to w ait tw o or th re e days for th e nex t
one. Now he lets out a squaw k if he
m isses one section of a revolving door.

Still Has It
Mrs.: “I can ’t th in k , for th e life of
me, John, w here th a t boy of ours gets
his tem per. T hey can ’t say it w as
from m e.”
Mr.: “T hey certain ly can ’t, m y dear
—y o u ’ve still got yours!”

No Warning
W ife (strolling in p ark ): “Oh, John,
th a t young m an on th e bench is ju st
about to propose, and he doesn’t know
w e’re coming. W histle to w arn h im .”
H usband:
“W hat for?
Nobody
w histled to w arn m e.”

W oe Is Us
W hen th e flood w as over an d Noah
had freed all th e anim als, he re tu rn e d
to th e a rk to m ake sure all had left.
He found tw o snakes in th e corner
crying. T hey told him th e ir sorrow:
“You told us to go fo rth an d m ultiply
upon th e earth, and we are adders.”

Gangway!
“T his,” explained th e chem istry p ro ­
fessor, “is one of th e m ost dangerous
explosives know n. If I am th e least
bit w rong in m y ex perim ent w e are
liable to be blow n th ro u g h th e roof.
K indly come a little closer, so th a t you
can follow me b e tte r.”

Somebody Lied
T he L ord Chief Ju stice of E ngland
recently said th a t th e g re a te r p a rt of
his judicial tim e w as sp en t in v estig at­
ing collisions betw een propelled v e­
hicles, each on its own side of th e
road, each sounding its ho rn and each
stationary.

Give It a Try
Billy: “Dad, can you help me w ith
th is problem ?”
F ath er: “I could, b u t I don’t th in k
it w ould be rig h t.”
Billy: “No, I don’t suppose it w ould
be—b u t tak e a crack a t it anyw ay.”

No Business W anted
Joe: “Are you doing m uch in yo u r
business now ?”
H arry: “I should say so! W hy, w e
are so busy th a t we em ploy a m an to
in su lt new custom ers.”

Too Late
Tourist: “D on’t stan d th ere like a
fool, man! R un and get th e village
doctor.”
N ative: “Sorry, m ister, th a t’s him
you ju st ru n over.”

Thwarted
E n th u siastic Suitor: “Tw o’s com ­
pany, sw eeth eart.”
Q uaker Miss: “Yes, b u t th e e ’s a
crow d.”

Nor The Last
Doctor: “Did you tell th a t young
m an I th in k he is no good?”
D aughter: “Yes, I did, Dad, b u t he
did not seem a t all upset. H e said it
w a sn ’t th e first w rong diagnosis you
have m ade.”

Cooperation
V isitor to M ussolini: “W hy are you
holding up th a t um brella? The sky is
blue and th e re ’s no ra in .”
M ussolini: “Ah, b u t it’s rain in g in
B erlin.”

ALLEN WALES ADDING MACHINE CORPORATION
W . J. PICKERING, President

444 Madison Avenue
.

New York, N. Y.

SALES AND SERVICE IN 400 AMERICAN CITIES AND IN 40 FOREIGN COUNTRIES

1 #

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i Federal Reserve Bank of St. Louis

rH E

personnel and resources of Iowa's

Largest Bank are enlisted for the duration of

r

the war in the whole-hearted support of our
Government and our armed forces . . . just
as ALL Banks and Bankers in Iowa patriot­
ically answer the Nation's call to service.
How can Banks help most today?

W hat

direction should financial leadership take?
W e suggest that every man and woman in
every community in Iowa

be constantly

reminded to take advantage of four impor­
tant opportunities available to every citizen
at this time:

1

r\

Invest in America through the purchase of
U. S. Defense Savings Bonds and Stamps.

Save N O W to meet sharply increased taxes,
by purchase of U. S. Tax Savings Notes, or
by regular deposits in a Savings Account for
this purpose.

[ Use increased income prudently . . . to pay
* off obligations and get out of debt.
Save a part of current income N O W in order
• to have a reserve in the Bank when the wheels
of production slow down.

★

★

★

DES MOINES NATIONAL BANK
6- T rust C o m p a n y
M e m b e r o f The


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Federal Reserve Bank of St. Louis

F e de r al

D e p o s it Insurance

Corporation