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JANUARY
1943

O F F IC E R C A N D ID A T E K A T H E R Y N F E L T E R
Candidate F elter is a bank wom an in training at the W A A C Center
at F ort D es M oines, Iow a. See page 8.

yiCTORY

BUY
UNITES*
STATES
WAR
BO N D S

AND

STAM PS


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Federal Reserve Bank of St. Louis

How Do You Figure Service Charges in Your Bank?
Page 16

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IN CEDAR RAPIDS
the M erchants N ational, w ith 62 y e a rs of service an d
exp erien ce, h a s a practical an d v a lu a b le k n o w led g e
of this territory w hich, together w ith its la rg e corre­
sp on d en t netw ork, e n a b le s it to render a quick and
efficient correspondent service to ban ks ev ery w h ere.

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SERVICINC A LL IOWA.

MERCHANTS
NATIONAL BANK
OFFICERS

n.

J ames E. H amilton, Chairman
S. E. Coquillette, President
H. N. B oyson, Vice President
Roy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice President
F red W. S m ith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , Asst. Cashier
L. W. B roulik, Asst. Cashier
P eter B ailey, Asst. Cashier
R. D. B rown, Asst. Cashier
O. A. K earney, Asst. Cashier
S tanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building1 Manager

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N orthw estern Banker, published m onthly by the D e Puy P u blishin g Company, at 527 7th Street. D es M oines, Iowa.
Subscription, 35c per copy, $3.00 per year. E ntered as second c la ss matter at the D es M oines post office.


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Federal Reserve Bank of St. Louis

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How Much
this Tank
was Built by
a Bank?

i

This Tank W as M ade in A m erica. The raw m aterials
b lasted from A m erican rock, d u g from Am erican soil.
» » And w h en they w ere finally sm elted and pro­
c e sse d into m etal — a factory in M ichigan built the
en g in e. Another, in P en n sylvan ia, fashioned its ar­
m ored body. Still a third, in Ohio this time, fabri­
cated the h u g e treads. A n arsen al in Iow a w ill fur­
nish the g u n s in its turret. A b o y from M aine will
m ake them spit — w h ile another b oy, from California,
sits at the controls. » » A m erica o w e s m uch to in­
dustry's ab ility to start in high — to m eet the urgent
dem and for "more" with breath-taking sp eed . . .
and to her great F inancial Institutions w hich h a v e
g ea red th em selves to the u rg en cy of the tim es, and
th e b a ttle of p r o d u c tio n . » » For, in a ll this.

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A m erica's Banks are the A ctive Partners— supplying
the funds, handling the m ultitudinous, com plicated
financial detail n ecessitated by all-ou t effort. » » And
practically every transaction involved in the building
of tanks, of p lan es, of ships and gu n s — is Paid-ByCheck, draw n on an Am erican Bank. » » Today —
checks a re m on ey! Their w id e use and read y a ccep t­
an ce is greatly facilitated b y a sp ecia l type paper
— Safety Paper — w hich affords protection against
fraudulent alteration— a product invented in 1871 by
G eorge La Monte. » » A very large majority of the
nation's banks and corporations protect their checks
b y usin g Safety Paper. M any h a v e their trade mark
or sp ecial d esign incorporated in the paper, w hich w e
furnish through lea d in g Printers and Lithographers.

G E O R G E LA M O N TE A N D S O N , N u t le y , N e w J e r s e y

'r*VlCTORY

If

buy
UNITED

states

/ ß ONDS


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Federal Reserve Bank of St. Louis

j

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STAMPS

I

4

H EA R T OF E V E R Y W AR
IS A BOM B L IK E T H IS
• hires in our war plants are

are no more non-combatants,

just as destructive if set by

make it your job to join in

accident as if caused by in­

winning the Battle of Industrial

cendiary bombs. And Care­

Safety. You can help prevent

lessness is as much the serv­

fire loss by doing just one

ant of the Axis as is Sabotage.

sim ple thin g for the war's

In 1941 fires in the United
States c au se d $303,895,000

duration. It is this:
Be EXTRA careful about Fire!

loss. A similar loss in 1943

When essential materials burn, they

w o u ld spell m o r e t h a n n a ­

are gone!

tional financial loss—it would
m ean a d e fe a t eq u al to a
drastic military or naval loss.

Insurance can

only

furnish funds to replace

them.

sTHE HOME *

As part of the Citizen Army
in an America in which there


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Federal Reserve Bank of St. Louis

FIRE

•

AUTOMOBILE

• MARINE INSURANCE

5

P^oar d^uótomeró

^ P p p re c ia le d JLió

PATRIOTIC
ENVELOPE
por

^ Ì^ P ar (jjP o n cló

Give new impetus to W a r B o n d
sales! Deliver them in this r e d - w h i t e a n d - b l u e envelope! Stir the patriotic
pride of ownership! M a k e even small
buyers feel that their p u rc h a s e s are im­
portant! A n o p p o rtu n ity to b u ild excep­
tional good will for your bank!
ci>cuH{de&

o n fcecfruedi

r

THE

'M e s i& u s u f,

BANK- BY> M AI L

C^nuelope
Save your depositors gas and tires! Offset the
scarcity of clerical help! H a n d l e a l arger volume
with fewer p e o p l e 1 See how the M e r c u r y B a n k - b y Mail envelope fits to d ay ’s conditions an d solves

BERK O W ITZ ENVELOPE CO.
Gentlemen:
P lease sen d u s sam ples o f th e im p ro v e d
B a n k -b y -M a il e n v e lo p e .

m a n y of y o u r p re s en t problems. Mail the coupon

□

for sam ples a n d complete plan.

BANK

M er c u r y

s 4 i i o lA Jar tld o n d ¿dni/efope d d a m p fe

BY

B erkowitz Envelope Co .,

C IT Y

STATE

1912 Grand A ve. D es M oines, Iow a

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Federal Reserve Bank of St. Louis

Northwestern Banker

January 1943

6

C ontinental I llinois
N ational Bank
and T rust C ompany
OF CH ICA G O

Statement of Condition, December 31, 1942
R ESO U R C ES
Cash and Due from B anks........................................................... $ 549,633,355.97
United States Government Obligations,
Direct and Fully G uaranteed.................................................. 1,295,006,645.31
Other Bonds and Securities..........................................................
62,155,698.45
Loans and D iscounts......................................................................
269,693,310.51
Stock in Federal Reserve Bank..................................................
3,000,000.00
Customers’ Liability on A cceptances........................................
353,392.98
Income Accrued but N ot C ollected ..........................................
4,334,500.64
Banking H o u se .................................................................................
Real Estate Owned other than Banking H o u se ......................

11,700,000.00
1,582,551.32
$2,197,459,455.18

L IA B IL IT IE S
D eposits.................................................................................................$2,052,097,478.20
A cceptances.......................................................................................
353,392.98
Reserve for Taxes, Interest andE xp en ses................................
6,407,167.52
Reserve for Contingencies............................................................
Income Collected but N ot E arned..............................................

17,237,486.54
380,523.58

Common Stock.................................................................................

50,000,000.00

Surplus.................................................................................................
Undivided Profits.............................................................................

50,000,000.00
20,983,406.36
$2,197,459,455.18

U n ited S tates G o v ern m en t ob lig a tio n s and oth er se cu rities carried at
$449,321,320.01 are pledged to secu re p ublic and tru st d ep o sits and for
other p u rp oses as required or p erm itted by la w .

Member Federal Deposit Insurance Corporation

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1943

7

Dealers in Municipal Bonds
The Chase offers correspondents a well rounded service
in this type of investment. Inquiries from banks will
receive the personal attention of experienced officers.
Bond D epartm ent

THE CHASE NATIONAL BANK
O F T H E C IT Y O F N E W Y O R K
Member Federal Deposit Insurance Corporation

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 19^3

I

r v in g

T rust C o m pa n y
O N E WALL S T R E E T • N EW YORK
Statement of Condition, December 31, 1942
ASSETS
Cash on Hand, and Due from Federal Reserve Bank and Other Banks . . .
U. S. G overnm ent S e c u r it ie s ........................................................................................

$ 2 4 3 ,0 7 4 ,4 4 1 .7 6
5 7 2 ,6 7 2 ,1 9 5 .7 2

State, County and M unicipal S e c u r i t i e s ...................................................................
Other S e c u r itie s .................................................................................................................
Stock in Federal Reserve B a n k ....................................................................................

2 .2 4 9 .3 7 0 .0 0
3 ,4 7 9 ,6 5 4 .8 9
3 .0 8 8 .1 0 0 .0 0

Loans and D iscounts
.....................................................................................................
First M ortgages on Real E s t a t e ....................................................................................

1 8 4 ,9 0 2 ,1 4 9 -6 4
8 ,7 7 2 ,1 8 6 .8 7
1 7 ,0 1 1 ,2 0 0 .0 0
1 ,3 2 3 ,1 2 6 .3 0

Headquarters B u ild in g .....................................................................................................
Other Real E s t a t e .............................................................................................................
Liability o f Customers for A c c e p t a n c e s ....................................................................
Accrued Incom e, Accounts Receivable, etc................................................................

1,053,639-15
2 ,6 4 5 ,2 8 8 .6 7
$ 1 ,0 4 0 ,2 7 1 ,3 5 3 .0 0

LIABILITIES
D e p o s i t s .............................................................................................$ 9 2 5 ,0 4 5 ,6 1 4 .3 8
Official C h e c k s ............................................................................
3 ,4 7 7 ,9 1 9 -4 3

$ 9 2 8 ,4 9 3 ,5 3 3 .8 1

A c c e p ta n c e s....................................................................................
$ 2 ,3 8 7 ,3 7 6 .2 7
Less Am ount in P o r t f o l i o .......................................................................87 3,0 4 0 .5 8

1 ,5 1 4 ,3 3 5 .6 9

Reserve for Taxes and Other E x p e n s e s ....................................................................
D ividend payable January 2, 1943 ............................................................................
Other L ia b ilitie s..................................................................................................................

1 ,7 7 1 ,8 2 7 .0 9
7 5 0 ,0 0 0 .0 0
5 3 4 ,9 8 8 .0 7

Unearned and Deferred I n c o m e ................................................................................
Capital S t o c k ................................................................................
$ 5 0 ,0 0 0 ,0 0 0 .0 0
Surplus and U ndivided P r o f i t s ..............................................
5 4 ,9 0 6 ,5 2 6 .4 1

2 ,3 0 0 ,1 4 1 .9 3
1 0 4 ,9 0 6 ,5 2 6 .4 1
$ 1 ,0 4 0 ,2 7 1 ,3 5 3 .0 0

U n ited States G overnm ent Securities are stated at am ortized cost. O f these, $154,887,670.00
are pledged to secure deposits of public m onies and for other purposes required by law .
M em ber Federal D eposit Insurance C orporation

BOARD
H A RRY E. W A R D
Chairman of the Board
O . L. A LEX AN D ER
President
Pocahontas Fuel Com pany
Incorporated
H EN R Y P. BRISTOL
President
Bristol-M yers Company
W . G IB SO N CAREY, Jr.
President
T h e Y a le & T oivne Mf g. Co.
R EID L. CARR
President
C olum bian Carbon C om pany

Northwestern Banker

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Federal Reserve Bank of St. Louis

ED W A R D H . CLARK
Chairm an of the Board
Cerro de Pasco Copper
Corporation
J O H N F. D EG EN ER , Jr.
C. A . A u ffm o rd t & Co.

OF

DIRECTORS
W ILL IA M N . EN STR O M
President

HARO LD A. H A TC H
Vice-President
Deering M illiken & Co., Inc.

J. W H IT N E Y PETERSO N
Executive Vice-President
U nited States Tobacco Company

A DAM K . LUKE
Vice-President and Treasurer
W est V irginia P ulp and Paper
C om pany

JACO B L. REISS
President, International
Tailoring Com pany

FLETCHER W . RO CKW ELL
W ILL IA M K . D IC K
H IR A M A. M A TH EW S
President, N ational Lead Company
Chairm an, Executive Com m ittee Vice-President
N a tio n a l Sugar Refining
W ILL IA M SK IN N E R
Com pany
M ICHAEL A. M ORRISSEY
President
President
H E N R Y FLETCHER
T he A m erican N ew s Com pany, Inc. W illia m Skinner & Sons
Fletcher & B row n
FR A N CIS L. W H IT M A R S H
A U G U STU S G . PA IN E
President
Chairman of the Board
GEO RG E F. G EN TES
Francis EL. Leggett & Company
N e w Y o r k & Pennsylvania Co.
Vice-President

January 19!t3

J A N U A R Y

19 4 3
FO R T Y -EIG H T H Y E A R _____________________________________________ NUMBER 666
Oldest Financial Journal West of the Mississippi River

CLIFFO RD DE PUY
Publisher

IN T H IS IS S U E

R A L P H W. M O O R H E A D
Associate Publisher
H EN R Y H. H A Y N E S
Editor
527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

•
N EW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth Ave.
Suite 1806
Telephone MUrray Hill 2-0326

Editorials
Across the Desk from the Publisher.

10

Feature Articles
Frontispiece .... .................................................................................................................
Association Officers “Cuss” and Discuss the P. C. A,........................ ......................
How Do You Figure Service Charges in Your Bank?............ ...................................
News and Views of the Banking World....... ....................................Clifford De Puy
Legal Questions and Answers.......................................................................................
How to Sell Service Charges to Your Customers............................... J. A. Sarazen

13

14
16
19
20'
22

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

★

★

★

ON THE COVER
O F F IC E R CA N D ID A TE
KATH ERYN FELTER
Katheryn Fe lte r, Portland, O re ­
gon, stands before a cannon at
histo ric old Fort Des Moines,
Iow a, home of the W A A C Training
C e n te r.
Before enlisting in the
C o rp s, Miss Fe lte r worked fo r six
y e a rs with the U. S. N ational
Bank at Portland, Oregon, and fo r
one y e a r with the V alley N ational
Bank of Portland.
She has re ­
ceived her b asic training in the
W A A C , and now is serving in the
classificatio n and assignment se c­
tion at the training center.
Women a t the Fort Des Moines
C e n te r, many of whom have been
a sso ciate d with banks, now num­
ber about 8,000.
It is reported
th at the number of women in
training w ill be increased to
12,000 in the n ear future.


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Federal Reserve Bank of St. Louis

Insurance
How Bankers Can Help to Prevent Disastrous F ires............................................... 27

Bonds and Investments
Pressure for Earnings Will Force More Buying of Government Offerings.......
............... ..............................................-...........-........ ................... James H. Clarke 31
They Bought Victory Bonds H ere....................................... ......................................... 33

State Banking News
Minnesota News ...................................
Twin City News..............................
South Dakota News............... ...............
North Dakota News........ ........... ........
Nebraska News ............... ......................
Omaha Clearings ________ ____
Lincoln Locals ................ ...............
Iowa News ...... .......................................
Brief News from Here and There
WAAC Portrayed in Bank Mural

.................. -...................
James M. Sutherland
....-.......-........................
.................................
.................... -................
......................................
...............................
......................................
- ..... -.............................
......................................

37
39
45
49
51
53
55
57
62
64

The Directors’ Room
A Few Short Stories to Make You Laugh

78

10

Across the Desk
From the Publisher

W ho Built America, Anyway?
Shall we say that Tree Enterprise^ and

Tugged Individualism^

which helped build America are no more than y/O l d Claptrap 7.
In the October issue of the N o r t h w e st e r n
B a n k e r , we commented on w hat the Archbishop
of C anterbury had urged the B ritish governm ent
to do about lim iting the banks in th eir lending
power, to the am ount deposited by th eir creditors,
which indicates th a t he d oesn’t know as much
about finance as probably m any less im portant
members of his congregation.
Now, in this country, the Rt. Rev. Jo h n A.
R yan, d irector of the N ational Catholic W elfare
conference’s d epartm ent of social action, in a
recent speech at Cleveland before the A m erican
Catholic Sociological Society, deplores the fact
th a t the control of the governm ent m ay re tu rn to
the voters who rep resen t the small business man,
the small m anufacturers, and the small town banker
and says it w ould be a terrib le calam ity if these
“ champions of free enterprise” were in power
again. No doubt he thinks the last 10 years of
deficits, and bureaucracies have been perfect.
Rev. R yan says, “ F irst, the m illions of re tu rn ­
ing' soldiers and sailors will not be satisfied or
fooled by the old clap trap concerning ‘rugged in ­
d ividualism ’, ‘A m erican o p p o rtu n ity ’, or ‘A m eri­
can e q u a lity ’.
“ They will dem and jobs here and now. I do
not believe th a t any economy dom inated by the
philosophy of ‘free e n te rp rise ’ will be able to
m eet th a t dem and.

Northwestern Banker


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Federal Reserve Bank of St. Louis

January 19J3

“ The statu s and influence of organized laibor,
and therefore of the whole body of wage earners,
is th reaten ed w ith a disastrous decline.
‘ ‘L abor m ay lose all the advantages th a t it has
obtained since June, 1933.
“ E xcept for two obstacles the most im p o rtan t
recent gains of labor would all be sw ept aw ay
w ithin the next six months. These obstacles are
the Senate and the P resident, and we cannot be
too confident about the Senate.
“ Unless the m iddle classes, th a t is, the com­
fortable farm ers, the members of the professions,
the small business men, the holders of executive
and directive positions in the g reat corporations
and, indeed, the m ajo rity of the ‘w hite c o lla r’
classes—cease to get th eir opinions from the
daily papers and strive to acquire a g reater
am ount of realistic economic intelligence, they
m ay exercise sufficient voting pow er to place the
cham pions of ‘free enterprises ’ in control of
economic reconstruction a fte r the war.
“ From such a calam ity m ay the good L ord de­
liver u s ! ’’
Of course, the soldiers and sailors are going to
w ant jobs when they come back and they will
he provided w ith them . No doubt in p a r t by the
governm ent b u t in a g re ater degree by the
factories, which will be transform ed from m aking
m unitions to m aking autom obiles; from m aking

11

guns to m aking rad io s; from m aking gun­
pow der to m aking electric re frig erato rs and the
thousand and one other articles of m erchandise
fo r w hich th ere will be a trem endous dem and.
W e are ra th e r bored and w eary a t having cer­
tain preachers and professors say th a t business
men are cro o k s; th a t bankers are scoundrels, and
try in g to in fer th a t politicians and preachers are
perfect.
H as in d u stry failed to do its share during the
w ar effort? Of course it has not, as it has tu rn ed
loose its m ighty m an u factu rin g genius to produce
the weapons of w ar and done it like m agic in a
12 m onths period since P earl H arbor.
H ave banks failed in this em ergency? Cer­
tain ly not, because 85 per cent of the governm ent
bonds w hich have been sold to finance the w ar
have eith er been sold to the banks or through
them to th e ir individual custom ers.
H ave all the unions cooperated? W e will let
you answ er th a t one fo r yourself, b u t in a recent
G allup Poll, w hy were 81 p er cent of those in te r­
viewed in favor of, “ all labor unions being re­
quired to register with the federal government
and report the amount of money they take in and
spend each year?”
But, who built America, anyway?
Did the communists build America? No.
Did the socialists build America? No.
Did the brain-busters build America? No.
Did the economic theorists build America?
No.
Did the politicians build America? No.
A m erica was built by the pioneers who w orked
60 and 70 hours a week. A m erica was b u ilt by
p riv ate enterprise. I t was built by rugged in ­
dividualists of every character, be he a sm all or
m iddle class shopkeeper, farm er, b anker or other
individual. A nd if th a t is “ c la p tra p ” then we
say m ake the m ost of it.
We wish to re fer the R ight Rev. Jo h n A. Ryan,
who hopes th a t the “ Good L ord will deliver us
from such a cala m ity ” , as having the m iddle
class re tu rn to pow er again, to his good friend,
Mrs. Eleanor Roosevelt and her new book “ This
Is A m erica,” which we assume she has read, for in
it she endorses the free press and the capitalistic
system along w ith priv ate enterprise when she
says, ‘ ‘Though there have been abuses that
challenged its efficiency, and it had been in some
ways greatly modified, the capitalistic system,
and the free enterprise it implies, works more to

the benefit of all than any other system yet
devised.”
In any rebuilding th a t Am erica may need afte r
this w ar, it will be done by the same kin d of
individuals whose ancestry traces back to the
founders of the nation who in th eir day d id n ’t
depend on alphabetical organizations to solve all
of th eir business and economic problems.
W ho b uilt Am erica, anyw ay?
Sir W illiam
B everidge,
The Biggest
one
of
B
rita
in
’s
m
ost widely
"Bug" in the
know n economists and edu­
Beveridge Plan

cators, has prep ared a re p o rt
of 300 pages which is supposed to tak e care of
B ritish subjects, “ From the cradle to the g ra v e ” .
The B everidge re p o rt proposes the expansion
of the entire social legislation of G reat B ritain
and plans to have it centered in a M inistry of
Social S ecurity to which each insured person
would m ake a single w eekly contribution.
I t is alw ays easy for any economist to figure out
a m ethod of elim inating w ant by sim ply dividing
up w hat someone else has, which is nothing more
nor less th an socialism, but the real answ er is to
be found, not in this method, but in creating more
w ays w hereby individuals can produce more
w ealth and thus be free from w ant themselves.
This idea was very well expressed by one
au th o rity on banking and finance, who said, “ The
real problem of abolishing want is not in finding
ways to divide up what we have, but in creating
more to divide. This means making sure that our
system provides the incentive for people to go
ahead with new projects and seek new dis­
coveries that will employ labor, increase produc­
tion, and add to the sum total of goods and
services that determine the standard of living.
If we can do this, it would be possible for us, with
our huge resources, the demonstrated genius of
our industrial leadership, and the effectiveness
of our labor force, to establish and reach a goal
of general well-being in this country which will
not only include the minimum of security, but
provide larger opportunities for u s.”
Thus, we th in k the biggest bug in the Beveridge
plan is th a t it does not p u t the emphasis on p ro ­
viding larg e r opportunities for people to increase
th eir own incomes.

Northwestern Banker

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

January 1943

12

STATEMENT OF C O N D I T I O N
At Close of Business December 31, 1942
/

"Iow a's friendly Bank"

CENTRAL NATIONAL BANK
AND TRUST COMPANY

MEMBER

FEDERAL

DEPOSIT

RESOURCES
Cash and due from
Federal Reserve
and other banks $20,659,768.60
U nited States Gov­
ernm ent Securi­
ties ___________ 17,881,623.08
O b l i g a t i o n s of
United S t a t e s
G o v e rnm ental
Agencies ______ 2,657,092.23 $41,198,483.91
M unicipal Securities ___________
2,422,619.21
Market B o n d s __________________
769,276.94
Loans and D iscounts____________ 10,273,792.74
Overdrafts _____________________
9,894.13
52,500.00
Stock Federal Reserve B ank_____
Accrued Interest R eceivable_____
128,622.61
Bank Premises and E q u ip m en t-352,729.53

INSURANCE

CORPORATION

LIABILITIES
Demand Deposits -$40,077,072.62
Savings D ep osits-- 2,393,362.29
Public Deposits __ 10,209,273.61 $52,679,708.52
Discount C o lle c te d ____________
Common S t o c k ____$1,000,000.00
Preferred S t o c k ___ 250,000.00

65,754.31
1,250,000.00

Surplus _______________________
Undivided P r o fits ______________
Reserve for Retirem ent of Pre­
ferred S t o c k _________________
Other R e s e r v e s ________________

T o t a l_______________________ $55,207,919.07

510.000. 00
251,913.10
250.000. 00
200,543.14

T o t a l_______________________ $55,207,919.07

U n ite d S ta te s G o v ern m en t a n d other se c u r itie s carried at $6,535,989.83 are p le d g e d to secure p u b lic and
tr u s t d e p o sits as required b y law .

DIRECTORS
G.

E. BRAMMER

BRAM M ER, BRODY, C H A R LTO N & PA R K ER

E.

F. BUCKLEY

B. REES JONES
P R E S ID E N T , T O W N M U T U A L D W E L L IN G
IN S U R A N C E C O M P A N Y

V IC E P R E S ID E N T

GUY E. LOGAN

HARRY GOLDMAN

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

P R E S ID E N T C. C. T A F T CO.

WM. J. GOODWIN
C H A IR M A N B O A R D O F D IR E C T O R S

ROBERT K. GOODWIN
P R E S ID E N T , R E D F I E L D B R IC K & T I L E CO.

H.

F. GROSS

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 SSN .

GROVER C. HUBBELL

WALTER E. MUIR
GEORGE A. PEAK
REAL E S T A T E

JULIAN A. PEVERILL
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

CHAS. N. PIERCE
V IC E P R E S ID E N T , L A N G A N P A P E R C O M P A N Y

WALTER L. STEWART

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

G IB S O N , S T E W A R T & G A R R E T T

MARK L. JOHNSON

W. E. TONE

REAL ESTA TE

REAL ESTA TE

Northwestern Banker

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Federal Reserve Bank of St. Louis

January Í943


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Federal Reserve Bank of St. Louis

14

Association Officers

discuss

CUSS and

P. C. A .

Other Questions Which Bankers from 14 North-Central States
Talked About Included:

i

1. Uniform service charges for banks.
2. How country banks can increase their revenue.
3. Should banks be allowed more gas when helping with the
"Food for Freedom" program?
4. What about the manpower problem in banks?
5. Should Congress investigate the whole F. C . A . setup?
6. How should we finance the war?
H E C entral S tates Conference, com ­
posed of p residents, vice presid en ts
and secretaries of th e B ankers
A ssociations of A rkansas, Illinois, In d i­
ana, Iowa, K ansas, M ichigan, M inne­
sota, M issouri, N ebraska, N o rth Da­
kota, Ohio, Oklahom a, South D akota
and W isconsin, m et in Chicago to hold
w h at w as know n as a “W ar W ork Con­
ference.”
T here w ere 105 reg istered at th e con­
ference, of w hich 7 w ere officers of th e
A m erican B ankers A ssociation.
The officers of conference elected
for th e y e a r 1943 and 1944 are as fol­
lows: P resident, R obert E. W alt, sec­
retary , A rkansas B ankers A ssociation,
L ittle Rock; first vice president, W m.
B. H u ghes, secretary, N ebraska B an k ­
ers A ssociation, Omaha; second vice
president, F rank W arner, secretary,
Iow a B ankers A ssociation, Des Moines;
secretary -treasu rer, E. P. Gum, secre­
tary , O klahom a B ankers A ssociation,
O klahom a City, Oklahoma.
The conference also appointed an
In te rsta te C om m ittee on G overnm ental
Com petition of th e C entral States, and
th is com m ittee included th e follow ing
m em bers: Oluf Gandrud, chairm an,
president, Sw ift C ounty B ank, Benson,
M innesota; AV. B. H u ghes, secretary,
N ebraska B ankers A ssociation, Omaha,
N ebraska; John N. Thom son, vice p re s­
ident and cashier, B ank of Centerville,
Centerville, South D akota; E. P. Gum,
secretary, O klahom a B an k ers A ssocia­
tion, O klahom a City; S. R. De Cou,
cashier, F irs t N ational B ank, W ood­
bine, Iowa.
T his com m ittee has held a m eeting
and w ill soon issue a form al report.

T

Northwestern Banker

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Federal Reserve Bank of St. Louis

January 19b3

F rank W arner, th e new second vice
p resid ent of th e conference, prepared
th e program for th e m eeting, w hich
w as a v ery in terestin g and exciting
one. He pointed out th a t th e states in
th e C entral States Conference re p re ­
sented 7,000 com m ercial banks out of

O LU F GANDRUD
P re s id e n t, S w ift C ounty B ank
B enson, M in n eso ta
C h airm an of th e I n te r s ta te C om m ittee
on G overnm ental C o m petition of the
C en tra l S ta te s C onference

th e 14,919 in th e U nited States, as w ell
as rep resen tin g one-third of th e popu­
lation and nearly one-third of th e area
of th e U nited States.
Also it w as th e Iow a delegation, u n ­
der th e guidance of F ran k W arner,

w hich took the lead in proposing th a t
th e In te rsta te Com m ittee on G overn­
m ental Com petition be appointed and
th u s offering a definite constructive
plan of procedure, w hereas w ithout
such a program th e conference m ight
have adjourned w ith no action having
been taken.
H arry C. H ausnian, p resid en t of th e
conference and secretary of th e Illinois
B ankers A ssociation, presided a t th e
sessions and used some of his “W ill
R ogers” h um or to help over th e tig h t
spots.
M. W. Ellis, su p erin ten d en t of b an k ­
ing in Iowa, gave a talk on “The Iowa
U niform Schedule,” w hich has m ade
him fam ous th ro u g h o u t th e country,
and is assisting banks in th e H aw keye
state to establish service charges
w hich are fair and uniform .
H ugh L. H arrell, p resident of the
O klahom a B ankers Association, and
vice p resident of th e F irs t N ational
B ank and T ru st Com pany of O klahom a
City, told th e conference how th ey had
prep ared a new service charge m anual
for use by all of th e banks in his state,
and th is m anual is proving v ery suc­
cessful.
W illiam C. R em pfer, chairm an of th e
b ank m anagem ent com m ittee, and
form er p resid en t of th e South D akota
B ankers A ssociation, and cashier of
the F irs t N ational B ank of P arkston,
South Dakota, told in elaborate details,
accom panied by charts, how his com­
m ittee had approached th e sm all banks
cost problem . Mr. R em pfer said th ey
had figured th e tim e it takes to handle
checks, and th en estim ated th e cost of
the service to th e custom ers. He said

15
th a t th e sm all b anks w ere found to be
th e least efficient and th a t b an k s w ith
fou r em ployes w ere doing a good job
on th e average.
F ran k A. V ogel, p resid en t of th e
B ank of N o rth D akota of B ism arck,
pointed out th a t “W e m u st cu t dow n
our ban k in g business to a w artim e
basis. W e can ’t expect to do business
as usual. M aybe out of all th is we
w ill find som e u nm ixed blessings.”
F ran k C. W elch, p resid en t of th e
Peoples Savings B ank of Cedar Rapids,
discussed th e “M anpow er problem s in
banks th ro u g h o u t th e d u ratio n ,” and
said, “One w ay to lose th e w ar is not
to have it p ro p erly financed, and w hile
no b an k er m ay be essential, b anks are
necessary to help finance and ru n th e
w a r.”
Larry O. Olson, p resid en t of th e M in­
nesota B ankers A ssociation and vice
p resid en t of th e M idland N ational
B ank and T ru st C om pany of M inne­
apolis, also discussed th e question of
“H elping to M aintain B ank Efficiency”
to m eet th e co n stan t loss of b an k em ­
ployes.
D uring 1942, Mr. Olson pointed out
th a t 70,000 em ployes had left the b anks
and th a t d u rin g 1943 b anks w ill lose
100,000 m ore m em bers of th e ir o rgani­
zations.
He also suggested th a t “B anks clas­
sify all m en in th e ir in stitu tio n s and
estim ate as fa r as possible th e require-

W IL L IA M B. H U G H E S
S e c re ta ry , N e b ra sk a B an k e rs A ssn.
F ir s t V ice P re s id e n t, C en tral
S ta te s C onference

m en ts needed and h ire m en over 38
and w om en to replace them . The
A.I.B. is needed m ore th a n ever to help
tra in new em ployes for th e b an k .”
AV. D ave B ates, fo rm er su p e rin te n d ­
e n t of b an k in g for Iowa, w as “am ong
those p re s e n t” and is now located in
Chicago w ith th e liquidating division
of th e F.D.I.C.
The firew orks concerning P.C.A.
really sta rte d w h en E. A\T. R ossiter,
ch airm an of th e com m ittee on com pet­
ing lending agencies of th e N ebraska
B an k ers A ssociation and p resid en t of
th e B ank of H artin g to n , N ebraska,
gave his ta lk en titled “A Challenge.”
He criticized th e A m erican B ankers
A ssociation for its failu re to act w ith

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p ro p er legislation against th e P.C.A.
and o th er subsidized governm ent agen­
cies.
H is talk w as followed by E. E.
Placek, also a m em ber of th e com m it­
tee on com peting lending agencies of
th e N ebraska B ankers A ssociation and
p resid en t of the F irs t N ational B ank
of W ahoo, N ebraska.
Mr. Placek discussed th e question
“Should C o n g r e s s investigate the
w hole F.C.A. setup, looking tow ard th e
elim ination of un essen tial agencies.”

FRA N K W A RN ER
S e c re ta ry , Iow a B an k e rs A ssn.
Second V ice P re s id e n t, C en tra l
S ta te s C onference

He §aid, “You are told to w ait u ntil
a m ore opportune tim e to fight the
P.C.A., but I say do it now . More than
13 banks have been liquidated in N e­
braska sin ce January 1, 1941, because
of the P.C.A. The P.C.A. is on the
m arch and should be stopped.”
W illiam B. H u ghes, new ly elected
first vice p resid en t of th e conference
and secretary of the N ebraska B ankers
A ssociation, accused Dr. H arold Ston ­
ier, executive m anager of th e A.B.A.,
of being th e cause for all of th e de­
lay in g etting any action from the
A m erican B ankers Association.
A. L. M. W iggin s of H artsville, South
Carolina, and vice presid en t of th e
A m erican B ankers A ssociation, ad­
dressed the conference a n d said,
“B anking has come th ro u g h th is pe­
riod and accom plished the best resu lts
of any segm ent of our national eco­
nom ic life. W e have proved th a t bank
m an agem ent has been able and a le rt
to assist in every w ar effort. B ankers
have m ore standing in W ashington to ­
day th a n in the last ten y ears and w ith
th e change of Congress our position
w ill be strengthened.
“T here has been a g reat deal of u n ­
n ecessary flash of personalities in this
P.C.A. discussion. As I listened to
Mr. R ossiter and Mr. Placek, th e fight
seem s to be about equal against the
P.C.A. and th e A.B.A. I asked tw elve
N ebraska men, W h a t is N eb rask a’s
position on th e P.C.A.?’ and I received
no answ ers. The real question is, ‘Are
you ready for th e A.B.A. and state
associations to fight th e P.C.A. to a
finish?’ T he answ er w as not to do so.

L e t’s forget th e in n er fam ily fight and
accom plish th e resu lts desired by p u t­
ting our eye on the ball because we all
agree on th e final objective.”
Clifford S. (Hap) Young, p resid en t
of the F ederal R eserve B ank of Chi­
cago, told the conference th a t W orld
W ar No. 1 cost $20,000,000,000 and th a t
W orld W ar No. 2 had already been
app ro p riated $240,000,000,000 for its
activities.
He em phasized th a t “The direct sale
of securities m ust be m ade to th e pub­
lic and th a t only one-fourth of th e ex­
penses of the w ar are now being m et
by taxation. W ar borrow ing m ust be
done out of c u rre n t incom e and sav­
ings.”
W. L. H em in gw ay, p resid en t of the
A m erican B ankers A ssociation and
p resid en t of th e M ercantile Commerce
B ank & T ru st Company of St. Louis,
discussed the question of “F inancing
th e W ar,” and said, “I am here as a
bond salesm an.
“T here are at least th ree w ays th a t
we can finance th e w ar. One—by the
issuing of paper money. Two—through
th e F ed eral R eserve Banks, and th ree
—by gettin g the m oney from th e peo­
ple of the U nited States.
“In th e 1943 fiscal governm ent year,
Uncle Sam w ill probably spend $80,000,000,000 on the w ar, of w hich $20,000,000,000 w ill be raised by taxes and

E. E. P L A C E K
P re s id e n t, F ir s t N a tio n a l B ank
W ahoo, N e b ra sk a
M em b er N e b ra sk a C om m ittee on
C om peting L en d in g A gencies

th e o th er $60,000,000,000 w ill have to
be borrow ed.
“In our bank, we subscribe for $2,000,000 of each $1,000,000,000 of govern­
m en t bonds offered.
“S ecretary M orgenthau said he w as
going to finance this w ar on an average
ra te of 2 p er cent if possible.”
W hen th e m eeting w as g etting real
hot on th e discussion of P.C.A. com pe­
tition, S ecretary F rank W arner said
th a t he th o u g h t both Mr. P lacek and
M r.R ossiter should have a chance to
an sw er Mr. W iggin s, b ut he hoped th a t
the conference w ould arriv e a t a meet(T u rn to page 24, please)
Northwestern Banker

January 19J3

16

How Do You Figure Service
Charges In

YOUt Bank?

Using the Charges Outlined in the Figures on the Opposite Page,
Would the Amount Collected Be More or Less as
Compared With Your Institution?
F T H E m any problem s of b an k
operation, service charges con­
tin u es to be am ong th e m ore
im p o rtan t, especially as to w h e th e r
such charges are adequate to m eet the
expense involved in h an d lin g v arious
accounts. In fo rm atio n and advice of
a general n a tu re is alw ays in terestin g
and in stru ctiv e, b u t to get rig h t down
to th e grass roots, a few actual figures
w hich can be used as a com parison
m ean m uch m ore th a n w ords, and be­
low are th e figures.
On th e opposite page are four item s
relatin g to charges on checking ac­
counts and service — from A verage
F a rm e r No. 1, A verage F a rm e r No. 2,
a F ive and Ten Cent Store, and a Food
M arket. The figures and th e analysis
of th em on th e opposite page are all
factual, tak en from th e books of a
b an k in a sm all city of 4,000 popula­
tion, w ith deposits of around $1,000,000, located in a good farm ing com ­
m unity. R epresented are tw o average
personal accounts and tw o average
com m ercial accounts.
Based on th e account activ ity figures
show n on th e opposite page, we asked
a nu m b er of b an k ers to tell us w h a t
th e service charges on these accounts
would be in th e ir bank, a t th e schedule
of charges w hich th ey have in force.
F ro m th e several sets of figures p re ­
sented these charges range from No
Charge on several of th e item s to
m ore th a n double on others. W e
realize th a t all factors affecting serv ­
ice charges cannot be th e sam e in all
com m unities, and p erh ap s no service
charge can be m ade u n fo rm co u n try ­
wide, b u t even so, th e fluctuation in
the figures as sent in seem s quite
broad.
The follow ing analysis comes from

O

C. W. A nderson, vice p resident and
cashier of the City State Bank, Madrid,
Iowa:

Follow ing are th e charges we w ould
apply to th e checking accounts in y o u r
illu stration:
A verage F a rm e r No. 1
$ .78
A verage F a rm e r No. 2 .
1.11
Banker
Digitized forNorthwestern
FRASER
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Federal Reserve Bank of St. Louis

January 19J3

Jo h n Doe 5 and 10 Store
1.34
Jo h n Doe Food M arket
5.95
The m ethod of analysis w e em ploy
applies to all accounts alike.
W e Charge
$ .03 on out of tow n item s
.04 for on-us item s
.25 m antenance charge
A gainst these charges we allow a
credit of 15 cents per $100 of average
balance. All accounts of m inor ac­
tiv ity and those not subject to an al­
ysis are charged a flat m aintenance fee
of 25 cents each m onth.
F ro m th e illustratio n s given in our
analysis w ould look like this:
A verage F a rm e r No. 1—
17 on-us item s at 4 cents
$ .68
M aintenance charge
.25
Gross charge
$120 av. bal. credit ..........
at 15 cents per 100

.93
.15

cents per $100 of average daily balance
has augm ented our revenue consid­
erably w hich is not reflected in th e
above figures.
Glenn X . D ill, cashier of th e F irst
N ational Bank, Oakes, N orth D akota,

m akes th e following statem ent:
None of the accounts listed w ould
be subject to any service charge in
th e F irst N ational B ank of Oakes,
o ther th an the reg u lar float charge on
out of tow n checks.
T his charge is—
$ .05 per item for checks u n d e r
$10.00

.10 for item s u n d er $100.00
.17 per thousand for each day
outstanding.
Charges m ade by th e F arm ers Sav­
in gs Bank, M artelle, Iow a, of w h ich
Guy C. M artin is cashier, w ould read

as follows:
A verage F a rm e r No. 1—62 cents.
A verage F a rm e r No. 2—80 cents.
$ .39
Five and T en Store—None.
2.28
Jo h n Doe Food M arket—None.
.25
In m aking explanation, Mr. M artin
says:
Gross charge
2.92
The tw o farm accounts w ere sim ple
$1,050 av. bal. credit at
enough, b u t in order to get exact fig­
15 cents p er 100
1.58 ures on the tw o com m ercial accounts
for our m ethod, I w ould have to have
Charge
$1.34
the daily balance for deduction from
Jo h n Doe Food M arket—
th e aggregate m onthly balances.
278 out of tow n checks at 3c $8.34
F o r some tim e our b ank has real­
11 on-us item s a t 4 cents
.
.44 ized th a t our w eak spot on service
M aintenance c h a r g e ..................... 25 charges is in the fact th a t we do not
charge our com m ercial accounts any
Gross charge
$9.03 handling charge for foreign item s,
$2,061 av. bal. credit at
b u t we hesitate to initiate th is charge
15 cents p er 100
3.08 unless favored by the balance of th e
Charge ...................................... $5.95 m em bers of th e Jones County Asso­
ciation. I feel th a t some concerted
Our service charges th is y ear have action should and no doubt w ill be
produced 9.2 p er cent on our capital, m ade along th a t line.
51 cents on each $100 of com m ercial
In m y opinion th ere is too m uch
deposits, or 32 p er cent of total re ­ v ariety in service charge m ethods
sources. Up to Septem ber 1st this am oung our banks w hich is confusing
y e a r we allowed a credit of 5 p er cent to our custom ers and b ankers alike.
on 75 per cent of th e average daily
(T u rn to page 46, please)
balance. R educing th is credit to 15

Charge
Jo h n Doe 5 and 10 Store—
13 out of tow n checks at 3c
57 on-us item s a t 4 cents
M aintenance charge

$ .78

17

THE STATE NATIONAL BANK, Anywhere, U. S. A.
The costs and allowances in handling checking account service.

An individual analysis of your own account for the month ending December, 1942, shows th at the expense
of handling the account exceeded the income earned on the average balance in the am ount of 71 cents.
In such cases we need to make a charge to bring the total income in line w ith the total expense. The
schedule on which this is figured is shown on the opposite side of this slip. If you would like the detailed fig­
ures on your own account or if you wish to ask any questions come in any time.
Please make an entry of this amount on your stubs that our records may agree.
Items handled, 17.
Average balance, $120.
Low balance, $106.
Customer—Mr. Average F arm er No. 1.

THE STATE NATIONAL BANK, Anywhere, U. S. A.
The costs and allowances in handling checking account service.

An individual analysis of your own account for the month ending December, 1942, shows th at the expense
of handling the account exceeded the income earned on the average balance in the amount of 93 cents.
In such cases we need to make a charge to bring the total income in line w ith the total expense. The
schedule on which this is figured is shown on the opposite side of this slip. If you would like the detailed fig­
ures on your own account or if you wish to ask any questions come in any time.
Please make an entry of this am ount on your stubs th at our records may agree.
Item s handled, 29.
Average balance, $245.
Low balance, $160.
Customer—Mr. Average F arm er No. 2.

H andling cost out-of-town
checks at I V 2 C. No. 13..$ .21
Activity on checks written
, 1.14
on us at 2c. No. 57.
H andling cost other items
. .50
at lc. No. 50.............
. .54
18 d eposits at 3c........
Interest on float for funds
in process of collection,
$ 1,200 ................................. .34
Basic m ain ten an ce service
ch arg e in cost not cov-

THE STATE NATIONAL BANK, Anywhere, U. S. A.
Low b a la n ce ..................................... .... $
A v era g e d a ily ledger b a la n c e ....

1,050.00

Less required reserve......................

210.00

Net loa n ab le b a la n c e ....................

840.00

Interest earned on lo a n a b le b a la n ce

, .50
.$3.23

For Net Cost See Right Hand Side


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Federal Reserve Bank of St. Louis

2.80

ANALYSIS OF ACCOUNT
FOR THE MONTH OF
DECEMBER, 1942

CHARGE 43 cents.

T/'Nt
JOHN DOE 5 AND 10 STORE

For N et Cost See Right Hand Side

H andling cost out-of-town
checks at 1V2 C. No. 278..$4.17
Activity on checks written
on u s at 2c. No. 11............ 22
H andling cost other items
at lc. No. 360.................. 3.60
30 deposits at 3c......................90
Interest on float for funds
in process of collection
at 17c p er M., $10,000.... 1.70
Basic m ain ten an ce service
ch arg e in cost not covered ab o v e ............................50
GROSS COST ..............$11.09

636.00

THE STATE NATIONAL BANK, Anywhere, U. S. A.
Low b a lan ce

$ 832.00

A v era g e d aily led ger balance.

2,061.00

Less required reserve.................

412.00

Net lo a n a b le b a la n ce, 1/3 of 1 %
Interest earned on lo a n a b le b a la n ce

ANALYSIS OF ACCOUNT
FOR THE MONTH OF
DECEMBER, 1942

1,649.00
5.40

CHARGE $5.69.

IOHN DOE FOOD MARKET
Northwestern Banker

January 19^3

18

N ew s
OF

THE

a n d
B A N K IN G

V ie w s
W ORLD

By Clifford DePuy
H E N we w ere v isitin g d u rin g
luncheon at th e M ilw aukee A th ­
letic Club w ith D onald A. H arper,
assista n t vice p resid en t of th e F irs t
W isconsin N ational B ank, he told us
th a t th e re w ere 70 of th e ir em ployes
now in th e service.
The deposits of th e F irs t W isconsin
w ere $281,000,000 on D ecem ber 31,
1941, and th ey are now over $340,000,000, of w hich $75,000,000 is rep resen ted
by b ank balances.
W alter K asten, p resid en t of the
bank, sent each of th e boys in th e
A rm ed Services a special greetin g
from th e bank in th e form of a check,
and w ith it a le tte r w hich said:

W

k indly invited us to have lunch w ith
them w hen we w ere in th e ban k re ­
cently. The food w as excellent and
th e com pany m ost delightful.
Ralph K. Brow n, personnel director
and ad vertising m anager of the M issis­
sippi V alley T ru st Com pany of St.
Louis, had so m uch success w ith his
“P rotective E nvelope” for gasoline
ratio n books th a t he has now p repared
a “Mileage M eter” w ith the compli-

“W h erever th is letter m ay reach
you —in camp or in action, or en route
to ‘destin ation u n k n ow n ’ — I w ant
you to k n ow that all of us here at the
F irst W isconsin still th in k of you as
a m em ber of our bank fam ily and look
forw ard to you r return.
“In th is spirit, w e are happy to send
you the enclosed holiday rem em brance
w ith sin cere Christm as greetin gs and
our best w ish es for your continued
progress in the serv ice”.
Frazer L. Ford is p resid en t of th e
“F irs t B an k s” in St. Joseph w hich in ­
clude th e F irs t N ational Bank, th e
F irs t T ru st Company, and th e F irs t
St. Joseph Stock Y ard B ank, and these
in stitu tio n s u n d e r his able leadership
have show n a v ery su b stan tial and re ­
m arkable g ro w th in th e last nu m b er
of years. The com bined deposits of
these in stitu tio n s on Ju n e 30, 1942,
w ere $22,183,000, and now th e F irs t
N ational B ank alone has deposits of
th a t am o u n t itself.
Mrs. F redrika S hu m w ay Sm ith is
th e w ife of Solom an A. Sm ith, p re si­

den t of N o rth ern T ru s t Company,
Chicago, and has as h e r hobby th e
w ritin g of poem s for children.
H er first book w as published last
y e a r and was, “The H ou se in the
T ree”. J u s t recen tly she has w ritte n
an o th er book, “The Magic S tairw ay”,
and both of th ese books have proven
v ery p opular w ith th e children.
W illiam H. M iller, vice president,
and C hester L. Price, ad v ertisin g and
publicity m anager, of th e City N a­
tional B ank & T ru st Company, very

Northwestern Banker


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

Januar g 1943

C L A R E N C E A. D IE H L A N D SON, P H IL
A bove is Clarence A. D iehl, vice p re s i­
d e n t of th e lo w a-D es M oines N a tio n a l
B a n k , a n d h is son, P hil, w ho is a first
lie u te n a n t in th e In te llig e n c e S e rv ice of
th e A rm y A ir Corps, now w ith th e 99th
B o m b a rd m e n t G roup.

m en ts of th e bank, and th is is a con­
v en ien t card w hich show s th e am ount
of m iles allowed per w eek and also
th e various w eeks beginning on each
M onday, th ro u g h th e com ing year and
th en a space for y o u r speedom eter
reading. If you do not w an t to carry
th is in your pocket, you can hang it
som ew here in the car m ost convenient
for you.
Joe A. Greenfield Jr., vice p resid en t

of th e F irst St. Joseph Stock Yards
B ank of South St. Joseph, M issouri,
has a v ery b eautiful daughter, F lo r­
ence B. Greenfield, w ho graduated
from St. M ary’s H ospital in R ochester
in 1941, and now is a second lieu ten ­

a n t A rm y N urse located a t F t. Leo­
n ard Wood.
Joe is well know n to b an k ers
th ro u g h o u t the m iddlew est and especi­
ally in N ebraska w here he has only
m issed two N ebraska B ankers Con­
ventions in 25 years.
K earney W ornall, vice presid en t of
the City N ational B ank & T ru st Com­
pany of K ansas City and vice p resi­
dent of th e M issouri B ankers Associ­
ation, attended the C entral States Con­
ference last m onth, and if you w an t
to get a th rillin g sto ry about a b an k
robbery, ask him to tell you his experi­
ence in W orld W ar No. 1, w hen a
Captain w ent w ild and killed four m en
w ith a h atch et and stole $62,000 from
the A rm y bank. The C aptain la te r
killed him self and the m oney w as re­
covered.
One of th e soldiers w orking in th e
A rm y bank w as none o th er th a n Mr.
W ornall and he w as also h it in th e
head w ith th e sam e h atch et th a t killed
th e o ther m en, and as a m a tte r of
fact, w as left for dead, b u t is v ery
m uch alive today, as everyone know s
w ho is acquainted w ith him , b u t he
still carries a scar in his scalp.
John F ox of the M ercantile Com­
m erce B ank & T ru st Company, St.
Louis, is p u ttin g in m ost of his tim e
these days assisting W . L. H em in g ­
w ay, p resid en t of th e bank and also
p resid en t of the A m erican B ankers
Association.
Mr. Fox g rad u ated from W ashington
U niversity in 1932 and w ent to w ork
for Mr. H em ingw ay th e follow ing y e a r
and has been associated w ith him ev er
since.
George M. Starring, secretary-treas­
u re r of th e South D akota B ankers
A ssociation, w ho is 30 y ears of age,
m ay be in th e service in six m onths,
and m any South D akota ban k ers w an t
Mrs. Starring to “take o ver” in case
George has to leave for the firing line.
H arry W ilkinson, form er p u b lish er
of the Chicago B a n ker w hich is now
know n as Finance, has retire d from
his activities on th e m agazine and
lives at 7418 South Oglesby Street,
Chicago. H a rry has a host of friends
in th e banking fra te rn ity from coast
to coast.

The best bond story we have h eard
w as told us by R obert L indquist, di­
recto r of public relations of th e A m eri­
can N ational B ank & T ru st Company,
Chicago, and it is th e story of a w om an
w ho had been saving h e r m oney to
get a divorce. W hen it w as suggested
th a t she buy governm ent bonds w ith

19
th e m oney instead, she said she w ould
buy bonds, “because she could stan d
h e r h u sb an d b e tte r th a n she could
H itle r.”
Jack D aw son of A lbert Frank-G uenth e r Law, Chicago, inv ited us to th e
a n n u al C h ristm as p a rty of th e Chicago
F in an cial A dv ertisers A ssociation, b u t
u n fo rtu n a te ly we had to leave th e
city a little before th a t tim e. These
are alw ays g re a t affairs and th is y ear
w as no exception, w ith cocktails being
served a t five and th e tu rk e y d in n er
(buffet style) sta rtin g at six-thirty.
P aul P. P u llen of th e Chicago Title
and T ru s t Com pany is p resid en t of
th e A ssociation th is year.
Jam es F. M cPherson, cashier of th e
C ity N ational B ank & T ru st C om pany
of K ansas City, e n te rta in e d us at
luncheon in his b an k building re ­
cently, w here th e Fred H arvey System
does th e cooking in a m ost delightful
style.
The deposits of th e City N ational
B ank & T ru st Com pany on Ju n e 30,
1942, w ere $47,908,000 and now th ey
are over th e $65,000,000 m ark, w hich
is an indication of th e p o p u larity of
th is v ery fine institu tio n .
M arvin R. Selden, vice p resid en t of
th e M erchants N ational B ank of Cedar
Rapids, is p roud of th e fact th a t th is
city is not only th e g rain cen ter of
Iow a b u t also th e political center, as
evidenced by th e fact th a t B ourke B.
H ickenlooper, th e new governor of
Iowa, and H arrison E. Spangler, ch air­
m an of th e R epublican N ational Com­
m ittee, both live in Cedar R apids and
in fact, as M arvin says, “E ach of these
m en have th e ir offices in th e M er­
ch an ts N ational B ank B uilding, w hich
is p ictu red in our m o n th ly ad v ertise­
m ent in th e N o r t h w e st e r n B a n k e r .”
Aside from th is inform ation, M arvin
says th a t one of th e m ore q uiet w eeks
of th e b an k included th e follow ing
events:
“L ast w eek
w as com p aratively
quiet. In addition to b ein g one of the
largest in w ar bond sales, one of the
y ou n g ladies in the departm ent n ow
set up to au gm ent and handle th ese
duties, M iss Jean B urrow s, becam e
Mrs. John Safranek. One of our book­
keepers, L u esth er Jane P atterson,
joined the W A V ES, and tw o of our
y ou n ger tellers, R obert A. H ahan and
Leo H olm es, each had son s born in
th eir hom es. A nother teller, H ow ard
Carney, joined the A rm y, th u s com ­
p letin g an u n ev en tfu l w eek.
“W ho said the M idw est w as not in
the AVar?”

W hen we w ere v isitin g w ith Tom K.
p re sid e n t of th e B oatm en’s

Sm ith,


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

N ational B ank of St. Louis, we re ­
m arked th a t th ere had been quite a
nu m ber of p residents of th e A m eri­
can B ankers A ssociation from St.
Louis, and so Tom got out th e record
and we found th a t th ere have been
nine p residents of the A. B. A. from
St. Louis, and in th e ir order th ey are
as follows:
1. 1888—Charles Parsons, presid en t
of the State B ank of St. Louis.
2. 1889 — A\7alker Hill, p resident
A m erican E xchange Bank.
3. 1910—F. O. Watts, h o n o rary ch air­
m an of the Board, F irs t N ational Bank,
St. Louis.
4. 1912—Charles H. Huttig, president
T h ird N ational Bank, St. Louis.
5. 1919—Richard S. Hawes, vice
president, F irs t N ational Bank, St.
Louis.
6. 1923—AValter A\7. Head, president,
G eneral A m erican Life Insu ran ce Co.,
and form er p resident Om aha N a­
tional Bank.
7. 1929—John G. Lonsdale, tru stee
St. Louis-San Francisco R ailw ay Co.
8. 1936—Tom K. Smith, president
The B oatm en’s N ational Bank.
9. 1942—W. L. Hemingway, p resi­
dent, M ercantile-Com m erce & T ru st
Co., St. Louis.
T his is certain ly a list of d istin ­
guished b an k ers and financiers of
w hich both the A m erican B ankers

A ssociation and St. L ouis m ay well be
proud.
M ilton Tootle III, vice p resident
of th e Tootle Lacy N ational B ank in
St. Joseph, M issouri, has w orked out
one of the m ost in terestin g and effi­
cient m ethods of keeping track of gov­
ern m en t bonds for th e ir b ank th a t we
have ever seen. In fact, it is so con­
densed, so convenient and so original,
th a t we are planning to ru n a special
article about it in the n ex t issue of the
N orthw estern B anker .

C harles M. N elson, vice p resid en t
and cashier of the N o rth ern T ru st
Company, Chicago, has a son, L ieu ten ­
ant D avid H enry N elson, j.g., on the
Louisville. He g rad uated from Yale
four y ears ago and m ore recently from
the N aval School at N orth w estern U ni­
versity.
Ed M. W arner, president of the City
N ational B ank of Clinton, told us w hen
we w ere visiting in his bank, th a t his
in stitu tio n w as in excellent condition
w ith deposits up around $7,500,000,
and th e dem and from the cattle feeders
w as quite satisfactory. The several
new in d u stries and large V eteran ’s
H ospital w hich located th ere in re ­
cent m onths, assures a dependable

(T urn to page 41, please)

/7Best Wishes From A ll of Us^

T he a b o v e p h o to g ra p h show s 350 of th e 867 officers a n d em ployes of th e F ir s t
W isco n sin N a tio n a l B a n k of M ilw a u k ee , W isco n sin , w ith W alter K asten, P r e s i­
d e n t, s ta n d in g in th e b a c k row . T he p ic tu re w as a n id ea of “ The G irls’ C lub”
of th e b a n k a n d w as se n t to th e 70 m em bers of th e b a n k sta ff w ho are in th e
se rv ice , w ith “ B e st w ishes fro m a ll of us.’ ’ T he p ic tu re w as p la c e d in an
a tt r a c t iv e h o lid a y fo ld e r w h ich said, “ We all w ish you lots o f luck in the service
and w e ’re looking forw ard to the day w hen y o u ’ll be back here w ith u s .’ ’

Northwestern Banker

January 19^3

Is a Bank W ithin Its Rights

To

Withdraw O ffar to

A

N IOWA b an k offered to sell F a r ­
rell a farm ow ned by it for
$5,000. The offer w as verbal
and no ea rn e st m oney p ay m en t w as
m ade or o th er consideration passed by
reason thereof. Before F a rre ll m ade
any m ove to accept th e offer, th e b ank
w ith d rew its offer and sold th e farm
to Snow. W as it w ith in its rig h ts in
doing so?
Yes. A n offer to sell land w hich is
not founded upon any consideration
can be w ithd raw n hy the offeror at
any tim e prior to its acceptance.

In 1932 an Iow a b an k b ro u g h t su it
to foreclose a m ortgage on certain land
in th a t state. In 1933 th e b an k w as
tak en over by the S u p erin ten d en t of
B anking and some five y ears later a
sheriff’s deed w as issued to th e re ­
ceiver. F ro m 1933 on v arious a ttem p ts
w ere m ade by th e ow ner th ro u g h
b an k ru p tcy proceedings, F ed eral C ourt
proceedings, and o therw ise to p rev en t
th e foreclosure. In addition, he sought
extensions of th e redem ption period.
All such attem p ts, how ever, resu lted in
holdings for th e m ortgagee. Finally,
the m ortgagee sought to sell th e land
by a co n tract of sale and th e form er
ow ner sought to enjoin such action.
The m ortgagee cross-billed in th e ac­
tion and asked th a t th e fo rm er ow ner
be enjoined from fu rth e r litigation.
Should th e p ra y e r in th e cross-bill be
granted?
Yes. E q uity m ay enjoin vexatiou s
su its not brought in good faith and in ­
stitu ted for annoyance or oppression
or to cause u nn ecessary litigation , al­
though th is pow er w ill be exercised
w ith caution and on ly in a clear case.
In a recent case in vo lv in g facts sub­
stan tially sim ilar to those outlined in
the question the Iow a Suprem e Court
held th at an injunction sou gh t again st
the form er ow ner should be granted.

B row n owed E nd g ate $500 on a
prom issory note in South Dakota.
B row n gave E ndgate a check for th a t
am ou n t and E ndgate delivered th e
note to Brow n. The check did not
clear and w as re tu rn e d unpaid. T here
had been no special or im plied agree­
m ent betw een th e p arties th a t th e
check w ould co n stitu te absolute payBanker
DigitizedNorthwestern
for FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

January 1943

These and Other Timely Legal
Questions Are Answered
By the

LEGAL DEPARTMENT

m en t of th e note.
considered paid?

Should th e note be

No. The rule in N orth Dakota is
that, in the absence of a special or an
im plied agreem en t to the contrary, the
m ere acceptance of a check for a prom ­
issory note is not absolute paym ent,
even thou gh the note he surrendered.

Suppose th at, in th e preceding ques­
tion, th e prom issory note w as one of
a series of notes and th a t th e paym ent
of all of th e notes in th e series had
been g u aran teed by B row n’s father.
W ould the fath er be liable u n d er his
g u aran tee for the note in question?
Yes. The acceptance of the check
w as not a paym ent on the note, and
therefore the liab ility of the fath er as
guarantor of the note in question is
to he determ ined in the sam e w ay as
h is liab ility on the other notes.

Blackwell, a M ichigan banker, em ­
ployed Stilson to w ork in his hom e in
th a t state as a dom estic. One of Stilso n ’s jobs w as to do th e ironing w ith
an electric iron. The electric socket
used in th e ironing becam e defective
and Stilson called th is to B lackw ell’s
atten tion. N eith er of th em th o u g h t
th e socket w as in a dangerous condi­
tio n and Stilson continued to use it.
She received a shock due to th e defec­
tive socket after she had used it in
such condition for some tim e and was
injured. She sued Blackw ell for dam ­
ages. Can she recover?
No. S tilson k n ew of the d efective
socket and continued to use it. By
reason of th ese facts she assum ed the
risks in cid en t thereto and cannot re­
cover from B la ck w ell for her dam ages.

P etrie, a N ebraska banker, p u r­
chased from M axwell his in terest in an

Sell Land ?

estate there. Due to certain fra u d u ­
len t activities of an attorney, to w hich
P etrie and M axwell w ere not parties,
th e sale w as set aside. P etrie had,
how ever, m ade certain expenditures
to p rotect th e in terest purchased by
him, w hich expenditures w ere in good
faith and w ere beneficial to Maxwell.
Can th ey be recovered by P etrie from
Maxwell?
Yes. Though the purchase of an
h eir’s in terest in an estate m ay he set
aside for fraud, reim bursem ent m ay
he allow ed for exp en d itu res m ade in
good faith by the purchaser to p rotect
the in terest so purchased, if the e x ­
penditures w ere beneficial to the heir.

An Iow a farm er executed a long
term m ortgage on his farm in th a t
state to the F ederal L and B ank of
Omaha. He duly m ade all paym ents
com ing due th ereu n d er for five years
and died. The m ortgage still had some
th irty y ears to run. The L and B ank
sought to prove its claim against th e
fa rm e r’s estate. Could it do so?
Yes. The fact that the m ortgage
w ould not becom e due for som e th irty
years from the tim e of the death of
the farm er cannot p reven t the presen ­
tation and allow ance of the claim
again st his estate, even though the
estate m ay he required to he held open
for the thirty year period. The Iow a
statu tes perm it no alternative and the
Iow a Suprem e Court has so held in a
recent decision.

The president of an Iowa corpora­
tion, th ro u g h various com plicated
stock m anipulations, violated his
d uty to the corporation and m ade cer­
tain secret profits for him self. May
th e profit so acquired be charged w ith
a tru s t for the corporation at its elec­
tion?
Yes. If an officer or director of a
corporation in violation of h is duty
acquires gain or advantage for h im ­
self, the in terest so acquired is charged
w ith a tru st for the benefit of the
corporation, at its election.

A South D akota b an k er ow ned a
farm in th a t state. A nearby city
caused th e stream ru n n in g th ro u g h
(T u rn to page 47, please)

21

STATEM ENT

OF
C O N D IT IO N
D ecem ber 31, 1942
RESOURCES
L oans and D is c o u n ts ............................................................................................. $ 15,918,241.84
451.04
O v e rd ra fts ...................................................................................................................
6,831.318.06
S ta te and M u n icip al B o n d s ................................................................................
1,407,348.85
O th e r B onds B o u g h t for In v e s tm e n t...............................................................
120 , 000.00
Stock in F e d e ra l R eserve B a n k ..........................................................................
649,000.00
B ank Office B u ild in g ............... ...............................................................................
1.00
F u rn itu re and F ix t u r e s ...........................................................................................
208,768.30
Incom e E a rn e d B u t N ot C o lle c te d .................................................................
B onds of th e U n ite d S ta te s and G overnm ent A g e n c ie s .$43,508,252.49
D ue from F e d e ra l R eserve B a n k ............................................ 20,409,548.18
Cash and S ig h t E x c h a n g e ........................................................ 19,162,492.25 83,080,292.92
$108,215,422.01

LIA BILITIES
C ap ital Stock ............................................................................................................ $ 2,000,000.00
S u rp lu s ..........................................................................................................................
2,000,000.00
U n d iv id ed P rofits ....................................................................................................
565,685.87
R eserve for C o n tin g e n c ie s .................................................................................
313,369.90
A ccrued T a x e s, In te re s t a nd O th e r E x p e n s e s ..............................................
195,768.35
D iv id e n d s D e cla re d and U n p a id ........................................................................
40,000.00
D e p o sits ....................................................................................................................... 103,100,597.89
$108,215,422.01

Member
Federal Deposit Insurance Corporation

Northwestern Banker

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

January 19b3

22

How to

S ß ft Service Charges

To Your Customers
While Most Banks Have Some Sort of Service Charge Schedule in O pera­
tion, There Are Still Those in Which Little or No Charges Are Made.
This Article Tells Clearly W hy Every Bank Is Fully Justified
In Applying Such Charges
EARLY all banks adopted some
held, at w hich tim e policies and p ro ­
By J . A . Sarazen
schedule of service charges af­
cedure will be thoroughly explained
Associate Editor
te r th e national b an k holiday in
to them . A dditional m eetings can th en
The Northwestern Banker
1933, and w ith th e rapidly changing
be held for half-hour periods each
conditions of th e last y ear or two,
week, or as the situ atio n w arran ts,
m an y of these plans have become
depending on the size of th e bank. In
antiq u ated and b anks are again rev is­
no case should vigilance be relaxed
ing th e ir service charges u p w ard to by em ployes and directors alike, as un til the plan is w orking sm oothly.
m eet p re se n t day conditions, and rig h t­ only th en will they be able to p resent An ex tra hour spent early in th e p ro ­
ly so.
the plan intelligently and e n th u siasti­ gram properly coaching and inform ing
As these new plans are being put cally to th e public. Em ployes usually the employes, w ill pay handsom e divi­
into effect, every p recaution should are th e ones w ho are called upon to dends later on.
be tak en so th e custom er w ill not feel an sw er th e m ost questions. The officer
It is not u nusual for em ployes to
th a t he is being tre a te d u n fairly and as “sales m an ag er” w ill see to it th a t feel th a t an increase in service charges,
th a t service charges are being handed his force is properly train ed to answ er slight as th ey m ay be, is too excessive
to him w ith a “take it or leave i t ” questions intelligently and w ith a and the plan unw orkable. T his ap p re ­
attitude.
p ro p er note of enthusiasm . T olerant hension can be allayed by pointing out
This m eans th a t service charges tre a tm e n t should be extended to all to them w h at o ther banks are doing in
m ust be sold to th e public. Your custom ers.
th e im m ediate te rrito ry and th ro u g h ­
stock-in-trade is “service.” You are
A few key custom ers about w ho out th e co u ntry in stren g th en in g th e ir
offering th e public som ething w hich is th o ro u ghly u n d erstan d yo u r plan can service charges. M uch of th e sam e
not tangible and if y o u r plan is im ­ be of m uch assistance. People w ill reasoning can be used in dealing w ith
p rop erly presented, question of its discuss the changes you m ake in your the public as w ith the employes.
w orth m ay arise.
b an k and it is well to have as m any
M any of the reasons for m aking
Y our service charge plan m ost likely inform ed persons in th e com m unity as changes in banking procedure today
w ill not please everyone, b u t a p ro ­ possible. This can be accom plished are as follows:
gram designed so it w ill function by calling in leaders in advance of the
1. M any of the charges now in effect
sm oothly from th e outset, w ill have installation of your charges and show ­ w ere created in 1933, a long tim e ago,
m uch in its favor. A ny plan in stitu te d ing them ju st how your plan w ill w ork and since th en th e W age and H our
should stan d on its own m erits w ith ­ so far as th e ir own account is con­ law has become effective, as w ell as
out th e assistance of “buck-passing,” cerned.
F ederal Deposit Insurance, m uch hig h ­
such as “I ’m going along w ith So-andE ach em ploye should be supplied er statio n ery cost, and higher cost of
So because he th in k s it’s th e th in g to w ith his own notebook settin g out insurance of all kinds, also hig h er cost
do.” F a in t h e a rt nev er w on fair lady th e procedure and policies of th e bank, of m echanical equipm ent, if you can
nor w ill it sell service charges. An preferably a loose-leaf system . Each get it.
aggressive a ttitu d e on th e p a rt of em ploye w ill th en be supplied w ith
2. Add to this th e additional “tax
everyone in th e bank, from th e p resi­ com plete in stru ctio n s to keep in his or b u rd en ” placed on banks. Taxes, in ­
den t on dow n to th e office boy, w ill do h e r ow n notebook. A thorough know l­ cluding real estate, personal, social
m ore good in p u ttin g over service edge of all m atters set fo rth th erein is security, victory tax, unem ploym ent
charges th a n an y th in g else.
necessary on the p a rt of each one, com pensation and sales taxes, are
A plan you know is equitable can be and p a rticu larly should each one be h igher th an ever before, and co n tin u ­
defended to th e last ditch, and since charged w ith full know ledge of those ing to go higher. The price of alm ost
service charge reven u e w ill now be no things p ertain in g to his or h e r own every o th er com m odity and service
sm all p a rt of a b a n k ’s income, no bank w ork. The notebook w ill contain any has increased d u ring the p ast y ear or
can afford to jeopardize th is income m aterial directed to th e public, such as so and banks, being subject to all these
by p resen tin g its plan in a h alf­ n ew spaper advertisem ents, folders ex­ things, now find it necessary to ad ju st
hearted, hit-or-miss or trust-to-luck a t­ plaining y o u r service charges, debit th e ir charges accordingly.
titude. The job m u st be done com ­ slips, etc., including specific duties for
3. The chief factor is th e decrease
pletely and w ith due d eliberation if it each em ploye in his or h e r own de­ in local loans. E a rn in g pow er th e last
partm ent.
is to m eet w ith th e u tm o st success.
year or so has been seriously affected,
It should be th o ro u g h ly understood
Officer-employe m eetings should be for as custom ers acquire increased

N

Northwestern Banker

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

January 19^3

23

WE

HAVE

ADD

NOW

NORTH DAKOTA
MINNESOTA

You Can Offer
Your Borrowers
The Advantages of
Field Warehouse
Inventory Loans

SOUTH
Da k o t a

WISCONSIN
MICHIGAN
IOWA

Ne b r a s k a
ILLINOIS

INDIANA
KANSAS
KENTUCKY

MISSOURI

TENNESSEE
OKLAHOMA
ARKAN SAS

ST. LO U IS TERM IN AL W A REH O U SE CO.
Bankers who have not investigated and used
Field W arehouse Inventory Loans through
St. Louis Terminal Warehouse Co. are miss­
ing a big opportunity to increase their loan
volume! These loans are safe, profitable, and
easy to handle. Almost any potential borrower
with marketable merchandise can get a Field
Warehouse Inventory Loan.
Because the greatest percentage of large
borrowers today are in war production and

essential industries, you can do your country
a patriotic service by offering them the oppor­
tunity of increasing their capital quickly and
safely. You lend them money on warehouse
receipts issued against inventory stored in a
bona fide warehouse on the borrower's own
premises.
Send the coupon today for details on this
simple, modern method of financing as han­
dled by our company.

F ield W areh ousin g D ivisio n

ST. LOUIS TERM IN AL WAREHOUSE CO.
832 Clark Ave., St. Louis, Mo.

■dependable warehouse
• 18 years depen
SSIViCe ,
a under $10 0 ,0 0 0 bond
• E v e r y employe
d un derW are-

. Every o p e ra lm n - ^

poUcy

*
“ reserve m an ag em en t
. Alert, p r ° ^ - iQined oigonization
* Expenence ■
• An organizati

responsii bility

a sense of

To ST. LOUIS TERMINAL WAREHOUSE CO.
832 Clark Avenue, St. Louis, Missouri
r—i Without obligation p lea se send me com plete infor— m otion on Field W arehouse Inventory Loans.
1 I H ave a representative stop in to see me.
N am e.............................................................................................. Title.......
Bank or Firm................................................................................................
Address...........................................................................................................
City......................................................................................... State.............................


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

Northwestern Banker

January 1943

24

Ideals
are Practical
Things
V icto ry , c o m p le te and f i n a l ,
is t h e o b j e c t i v e o f e v e r y
activity that now engages the
attention of Government, of
i n d u s t r y , of labor, a nd of
finance.
In war, as in peace, those who
carry on in p ub lic ser v ic e
must hold fast to ideals.
E n t r u s t your b u s i n e s s to an
i n s t i t u t i o n t h a t has served
w e ll t h r o u g h ev e ry m ajor
c r isis fo r one h u n d red and
f o r t y y ea r s.
. . . THE . . .

P H IL A D E L P H IA
NATIONAL

BANK

O R G A N IZED 1803

PHILADELPHIA, PA.
Resources over $650,000,000

am ounts of cash on hand, th ey also
reduce th e ir loans. Since income from
loans has alw ays been th e chief source
of revenue for banks, and w ith th is
source dim inishing, th e banks m u st
find some o th er source of supporting
th e ir earnings, such as in stalling a
“stop-loss” system of service charges.
The change is also necessitated large­
ly because of th e unprecedented low
rate of in te re st now being paid on
securities suitable for b ank in v est­
m ent.

CUSS AND DISCUSS
THE P. C. A.
(C ontinued from page 15)
ing of m inds and get some action on
the P.C.A. question.
Mr. W arn er th e n suggested th e ap ­
p o intm ent of a com m ittee of five to dis­
cuss the en tire P.C.A. com petition and
a roll call of th e states w as held and
th e com m ittee w as appointed, although
S ecretary W illiam B. H u ghes reserved
th e rig h t to carry on th e fight alone
if th e N ebraska A ssociation w ished to
do so.
R. L. B unce, deputy su p erin ten d en t
of th e D epartm ent of B anking in the
State of Iowa, discussed the sm all loan
business and he em phasized th a t such
loans w ere not necessarily th e special
function of banks b u t th a t he th o u g h t
th a t th e sm all loan com panies and th e
banks should w ork to g eth er as h a r­
m oniously as possible.
D. J. N eedham , general counsel of
th e A m erican B ankers A ssociation,
discussed various problem s and em pha­
sized th a t “The OPA w ill allow m ore
gas for banks w hich help to c a rry out
th e Food for Freedom Program . The
P.C.A. is gettin g all th e gas th ey need
to com pete w ith ban k s.”
Mrs. A m anda W hinery, w ho for th e
p ast 15 y ears has been associated w ith
th e Illinois B ankers A ssociation, as­
sisted very ably w ith all th e details of
reg istratio n and th e sale of luncheon
tickets d uring th e conference.
B. A. Gronstal, p resident of th e Iow a
B ankers A ssociation and p resid en t of
th e Council Bluffs Savings Bank, in ­
sisted th a t th ere should be an early
m eeting of th e new P.C.A. com m ittee
and th is w as agreed to.
T hus th e w ar w ork m eeting of th e
C entral States Conference cam e to a
close and the cussing and discussing
w hich w en t on, we are sure, w ill be
helpful in eventually obtaining b e tte r
legislation for banking, as w ell as be­
ing helpful to th e w ar effort.

Member of Federal Deposit Insurance Corporation

Mrs. B artel (looking out of w in ­
dow) : “E arl, here comes com pany for
supper.”
E arl: “Quick, everybody ru n out on
th e porch w ith a toothpick.”
Northwestern Banker

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

January 194-3

25

T he
N ew Y ork T r u st
Co m pa n y
IO O

BROADW AY

MADISON AVENUE AND 4 0 t h ST.

TEN ROCKEFELLER PLAZA

C O N D E N SE D ST A T E M E N T OF C O N D IT IO N
At the c lo se o f b u sin ess, D ecem b er 31, 1942

ASSETS
Cash on H and and in Federal Reserve B a n k ................................................. $ 1 3 4 ,8 3 8 ,2 0 8 .3 9
Exchanges, C ollections and Other Cash I t e m s ...........................................
3 7 ,3 0 9 ,8 6 8 .5 1
U nited States Governm ent O b ligation s—D irect and Guaranteed . . .
3 2 6 ,9 9 5 ,9 3 6 .7 0
Other B onds and Securities
............................................................................
2 5 ,1 1 7 ,7 3 1 .1 9
Loans and D is c o u n t s .............................................................................................
1 4 0 ,6 0 1 ,2 2 8 .9 2
Interest Receivable, Accounts R eceivable and Other A sse ts.....................
1,699,583.21
Custom ers’ Liability for A c c e p t a n c e s ...........................................................
9 2 ,1 1 0 .0 6
Real Estate B onds and M o r tg a g e s ......................................................................
3,4 3 1 ,2 1 3 .9 3
Equities in Real Estate
......................................................................................
1 ,0 59,005.32
Banking P rem ises—E q u i t y ................................................................................
2 ,0 2 4 ,5 9 8 .0 9
$ 6 7 3 ,1 6 9 ,4 8 4 .3 2
LIABILITIES
D eposits
...........................................................................$ 6 1 4 ,4 9 9 ,2 8 4 .8 1
O utstanding and Certified C h e c k s ...........................
1 4 ,2 7 8 ,0 1 6 .1 6
D ividend Payable January 2, 1943 ................................................................
Accounts Payable, Reserve for Taxes and Other Liabilities . . . .
A c c e p t a n c e s ............................................................................................................
C a p i t a l .................................................................................
1 2 ,5 0 0 ,0 0 0 .0 0
S u r p l u s ................................................................................
2 5 ,0 0 0 ,0 0 0 .0 0
U ndivided P r o f i t s ...........................................................
4 ,5 3 2 ,4 3 3 .9 4

$ 6 2 8 ,7 7 7 ,3 0 0 .9 7
4 3 7 ,5 0 0 .0 0
1,8 0 4 ,4 2 0 .5 0
117,828.91

4 2 ,0 3 2 ,4 3 3 .9 4
$ 6 7 3 ,1 6 9 ,4 8 4 .3 2

United States Government obligations and other securities carried
at $108,018,866.82 in the above statement are pledged to secure
United States Government deposits of $99,619,588.43 and other
public and trust deposits and for other purposes required by law.
TRUSTEES
M ALCOLM P. ALD RICH

FRA N CIS B. D A V IS, JR.

H O W A R D W . M AXW ELL

N e w York

Chairm an of the B oard
U n ited States Rubber Company

H A R R Y T. PETERS

A R T H U R A. B A LLA N TIN E

Root, Clark, Buckner
& B allan tin e
J O H N E. B IE R W IR T H

N ew York

F. TRU BEE D A V IS O N

N e w York

President, A m erican Museum
of N a tu r a l H istory

SE T O N P O R T E R

President, N a tio n a l D istille rs
P roducts Corporation

P residen t

RUSSELL H . D U N H A M

JAMES Ç. COLGATE

Bennington, Vt.

Chairman of the B oard
H ercules P o w d er Company

ALFRED A. C O O K

SAMUEL H . FISHER

Cook, N athan, Lehman
& Greenm an

Litchfield, Conn.

Executive V ice-P resident
Corn P roducts Refining Co.

W ILLIA M HALE H A RK N ESS

V A N D ER B ILT WEBB

W ILLIA M F. CUTLER

N e w York

N e w York

V ice-P resident
A m erican B rake Shoe & Fdy. Co.

B. BREW STER JE N N IN G S

MEDLEY G. B. W H ELPLEY

D EA N SAGE

Sage, Gray, L o d d & Sims
M O R R IS SAYRE

Socony-Vacuum O il Co., Inc.

Member of the Federal Deposit Insurance Corporation


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

Guggenheim Bros.

26

Northwestern Banker

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

January 19^3

H ow Bankers

CctU Hßtp

Prevent Disastrous Fires
Expert Believes Too Much Time Spent in Learning How to Com bat Aerial
Bombs, and Too Little on How to Fight Ordinary, Every­
day Fires Before They Start
LACING th e resp o n sib ility of w a r­
tim e p la n t fire p rotection and th e
safeguarding of w o rk e rs’ lives
sq u arely on th e heads of in d u stry m an ­
agem ent, and calling for m an ag em en ts’
w ho leh earted cooperation, and c a rry ­
ing out of th e recom m endations of
th e ir fire pro tectio n and safety engi­
neers, C urtis R. W elborn, secretary of
U nd erw riters L aboratories, non-profit
safety en g in eering and research o r­
ganization, recen tly gave th e solutions
to m an y of in d u s try ’s fire hazard p ro b ­
lems.
“D irectors of business and in d u stry
—m anag em en ts—are too often difficult
to convince th a t sim ple p recautions
and p rev en tiv es ag ain st fire are es­
sen tia l to u n in te rru p te d operation,”
said W elborn.
W ar has produced som e special fire
problem s, said th e speaker, b u t it has
not really produced any new hazards.
I t has only increased th e m agnitude
of h azards w ith w hich we are already
fam iliar.
“The h u m a n problem ,” W elborn em ­
phasized, “has been and continues to
be th e fire p re v e n tio n ists’ g reatest ob­
stacle. The ‘unconscious sab o teu r’ th a t
we have h eard so m uch about lately is
m erely a new te rm for th e sam e old
tw in sisters: carelessness and ignor­
ance.”
It is Mr. W ellb o rn ’s considered opin­
ion th a t too m uch tim e has been spen t
recen tly in learn in g how to com bat
aerial bom bs, and fa r too little on how
to fight ordinary, every-day fires before
th ey start.

P

F ire protection engineering, W el­
born pointed out, is not a h it or miss
proposition. It is rapidly approaching
th e statu s of an exact science. Over
th e y ears it has determ ined th a t one
of th e best fire protection plans can be
reduced to th ree basic principles: 1—
Clean up and clean out. 2—Separate
th e risk s and isolate hazardous proc­
esses or operations. 3—Secure proper
fire p rotection equipm ent, m ain tain it,
and know how to use it.
If an essential p lan t is crippled by
fire, supplies to th e fighting m en are
dim inished. T hat m ust not happen.
“M anagem ents’ delay, p ro crastin a­
tion, and failure to realize th e serious­
ness of hazardous conditions or to p ut

into effect th e recom m endations of
th e ir fire protection advisers u n til af­
te r the fire, has resulted in m any seri­
ous losses,” said W elborn.
Giving as an exam ple th e F all R iver
fire, in w hich 10 per cent of the n a ­
tio n ’s precious supply of crude ru b b er
was endangered and 70 per cent of
th a t am ount destroyed because no
autom atic sprinklers, as recom m ended,
w ere provided in the foam rub b er d ry ­
er w here th e fire originated, he stated
th a t plans w ere m erely “in process”
to provide th e needed sp rin k ler p ro ­
tection at th a t point.
“K now how to use the fire protection
equipm ent provided, is an axiom ,”
W elborn said. B ut in th e F all R iver

M any p ile s of ashes lik e th is could be a v o id e d if b u ild in g s w ere c le an e d up an d
c le an e d out, a n d p ro p e r fire p ro te c tio n e q u ip m e n t w as m a in ta in e d a n d used.

S carborough ¿.C ompany
¿ / n & A A h a jtc
First National Bank Building, Chicago

Horace A. Smith, Iowa Representative
Des Moines, Iowa

Northwestern Banker

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

January Í9J3

28
fire, som eone classified as a “w atch ­
m a n ” sh u t off the sp rin k lers w hich
had been installed in an o th er section
of the building!
F ire p rev en tio n engineers h a v e
fought for years for buildings or n o n ­
com bustible m aterials w ith fire-wall
cut-offs in th e larg er areas, and for
autom atic fire doors in th e openings
th ro u g h these walls, and for sim ilar
protection in v ertical sh afts betw een
floors. The idea b ehind such p lanning
is to confine th e fire w ith in th e area in
w hich it starts.
“B ut,” said W elborn, “th e m enace
w hich appeared on our horizon a little

P

THE
u b l ic :

N a t io n a l

Bank
AND
TRUST COMPANY
OF NEW YORK
S e r v i e © — M a in ta in in g an
intim ate, personalized corre­
spondent bank service.

E x p e r ie n c e — Officials with
years of service in this field,
assuring a know ledge o f re­
quirem ents and valuable as­
sistance.

P o lic y — To cooperate with
out-of-town banks rather than
com pete for business which is
rightfully theirs.

over a year ago, causing an unp rece­
dented h u rrican e production of w ar
im plem ents of great size and in large
n u m ber has, in m any instances, neces­
sitated a d ep artu re from th is basic fire
protection principle. Today high value
contents and vital, stra ig h t line opera­
tions are u n d er roofs hu n d red s of feet
w ide and thousands of feet long w ith ­
out conventional fire b a rrie rs.”
The problem s th u s introduced have
been m agnified by the necessity of
draw ing into these huge w ar plants
h u n d reds of thousands of previously
unskilled m en and wom en. M any of
these new w orkers come from envi­
ro n m ents th a t breed carelessness, the
sp eaker com m ented. M any of th em
have never h eard of th e “Stamp-Outth e-B utt” slogan.
“Because of this and sim ilar situ a­
tions, the fire-protection engineer is
con stantly living in fear of w hat m ay
hap p en,” said W elborn.
The carelessness of “g reen ” w o rk ­
m en unaccustom ed to factory proce­
d u re or to high-speed production, ig­
norance of w h at constitutes a fire
hazard, th e operation of w elding and
cu ttin g torches and o th er hazardous
eq uipm ent by novices w ith little ex­
perience, m aintenance of electrical
system s by apprentices, th e h u rried
in stallation of tem p o rary electrical
w iring w hich som ehow becom es p e r­
m anent, th e use of w atchm en or guards
not p ro perly qualified and inadequate­
ly trained, lack of experience of m any
w o rk ers w ith available fire fighting
equipm ent; all these and m any other
co n trib u tin g factors, plus th e failure
to isolate hazardous processes, and the
lack of fire-wall subdivision and m any
o th er conditions m entioned by W el­

born, place, he said, “a trem endous
burden of responsibility on th e safety
engineer and m ake absolutely neces­
sary th e com plete cooperation of m an ­
agem ent.”
“N othing need be said,” W elborn
com m ented, “of th e im portance of p re ­
ven tin g all disruptions of the produc­
tion of th e m aterials needed by o u r
boys in th e A rm y, N avy and M arines.
It goes w ith o u t saying th a t to ‘keep
’em flying’ we m ust keep the m achines
of production rolling. T h at is m anage­
m en t’s responsibility.”
“B ut m anagem ent has an o th er re ­
sponsibility also,” th e safety e x p ert
said, “th a t of safeguarding th e lives
and w elfare of th e m illions of w o rk ­
m en and w orking w om en in th e plants.
Aside from th e m oral issue involved,
th e problem can be considered from
the p u rely economic angle.”
The c o u n try ’s ann u al fire toll of h u ­
m an life is estim ated at 10,000 persons,
W elborn told his listeners. Skilled
people should not be tram pled or
bu rn ed to death at any tim e, especially
now, he said.
Mr. W ellborn show ed how th e “co­
lossal stu p id ity ” of allow ing such loss­
es can be calculated on a dollars-andcents basis in th is way:
Social Security says th a t m en and
w om en are th ro u g h at 65. A ssum e th e
average of th e 10,000 persons killed by
fire each year at 30 years—w hich is
probably high. Give 50 per cent of th e
dead ones a probable w orking period
of 20 m ore years (again conservative),
and assum e an average earning pow er
of $1,000 p er person per year. M ulti­
plying these factors: 20x5,000x$l,000
gives th e sum of $100,000,000.
T his sum of $100,000,000 is th e prob-

In 1943
Folks Will Continue to Say

"Allied Mutual ßaqA,

W

W o r k m e n ’ s C o m p e n sa tio n
Public L iab ility
F u ll C o v e r a g e Automobile

ALLIED MUTUAL
ESTABLISHED 1908

CASUALTY COMPANY

MEMBER

Harold S. Evans, President

NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker

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

January 1943

Hubbell Building

^

. . .

,

Des Moines, Iowa

\

DES MOINES

29
w Bm m KÊËÊÊÊttÊÊÊm m
(This is a reproduction of Nw NL’s current national advertisement)

Help me,*Alm'rghty God, to be the only kind of hero I can ever be.
Help me see how important it is that I go gladly and energetically
about the humdrum business of saving my tires and my fuel,
of spending less and saving more, of eating less and working
harder, of asking less and giving more.
Help me see that while the war may be won no matter what I
do, the light we fight to keep alive may go out because of what
I prove myself to be.
Help me to realize that Americans are fighting today, not to cre­
ate freedom and opportunity for the ruthless and greedy, but to
make it possible for kind men, men of integrity, responsible men,
to work in peace, and to work for the common good.
Help me realize that these fighting men — indeed, the good men
and women of the whole world — are waiting now for one small
but all-important sign from me:
They know I can't join them in the blood and dirt. But they want
to see if I will seek responsibility. They wait now to see if I need
merely to be led to do my part, or if I must be driven. For that
will tell them if their spirit is also my spirit, and their purpose
mine.
Help me not to fail them. Amen.

Northwestern JV ational Life
INSURANCE COM PANY OF MINNEAPOLIS
O.

J. A rn o ld

•4iïéuritV£

P residen t

In years past, this company's annual financial statement has appeared in this space. The current
statement w as issued as usual on January 7. Copies are available upon request.
IN SU R A N C E IN FO RCE $498,544,076


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

ASSETS $93,777,557

C A P IT A L & SURPLUS FUNDS $7,147,995

30
able life earnings of one-half of one
y e a r’s slau g h ter by th e fire demon,
W elborn explained.
“H ard - headed
business m en,” he continued, “looking
a t th e problem from a cold-blooded,
dollars-and-cents point of view, should
know th a t th is n atio n cannot afford
to m ake additional contributions to th e
hum an ash pile.”
“Now th a t our forces are in global
conflict,” he added, “all m an-hours of
w ork are needed to keep th em su p ­
plied, and th e productive effort of all
th ro u g h o u t th e ir allotted span w ill be
needed to pay taxes for m any years
afte r th is m ess is ended.”

Northwestern National
Statement
Life insurance, w hich has m ade an
effective contribution to w inning the
w ar on the hom e fro n t in 1942, m u st
b e tte r th a t contribution in 1943 by
continuing — and intensifying — its
sales and service activities, O. J.
A rnold, p resident of N orth w estern N a­
tional Life Insu ran ce Com pany of
M inneapolis said in his ann u al review
and analysis of the com pany’s finan­
cial statem ent.
F o r m any y ears N o rth w estern N a­
tional has been first w ith its com plete

For Bank Investment
Short Term U . S. Securities
Treasury Bills, maturing weekly with a
maximum of 91 days
Treasury Certificates of Indebtedness
%% due Feb. 1, 1943
.65 °/c due May 1, 1943
%% due Aug. 1, 1943
%% due Nov. 1, 1943
%% due Dec. 1, 1943
Reconstruction Finance Corporation
1 °Jo Notes due April 15, 1944
Treasury 1 ^/4 % Notes due March 15, 1945
1 °jo Notes due March 15, 1946
1^2 °/° Notes due Dec. 15, 1946
Treasury 1%% Bonds due June 15, 1948
Inquiries by telephone, wire, or m ail are invited,
and quotation sheets will be mailed on request.
T e le p h o n e Franklin 6 8 0 0 — L D 9 2 - 9 3 - 3 1 3
T elety p e C G 9 8 7

BOND DEPARTMENT

The First National Bank
o f Chicago
Northwestern Banker

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

January 1943

and final year-end figures, releasing
them on New Y ear’s Day. Mr. A rnold,
accom panied by several of the com ­
p an y ’s officers, p resented and dis­
cussed the new statem en t at a g eneral
m eeting in th e W hite and Odell agen­
cy offices in M inneapolis. A sim ilar
m eeting w ill be held at the LaSalle
H otel in Chicago on M onday, Ja n u a ry
4th. These m eetings, Mr. A rnold said,
are fo reru n n ers of a ten tativ ely p lan ­
ned series of gath erin g s p attern ed
after the policyholders m eetings pio­
neered by th e com pany tw o y ears ago
b u t tailored to m eet w artim e condi­
tions, to be held in localities w h ere
th ere is su b stan tial rep resen tatio n of
policyholders and agents.
“As national incom e rises to an alltim e high and consum er goods get
scarcer due to shortages and rationing,
our job of d iverting su rp lu s ‘inflation­
a ry ’ dollars into life insurance and w a r
bonds w ill step up in im portance,”
Mr. A rnold said. “The responsibility
of every life insurance w orker, in field
and hom e office, w ill be far h eav ier
th an th a t of th e average civilian; to
live up to it we m u st use all our im agi­
nation, initiative, and organizing abil­
ity and w ork as h ard a t our jobs as
though we w ere doing the m ore d an­
gerous w ork of th e fighting m an o r
the spotlighted w ork of th e p roducer
of w ar m aterials.”

Chemical of New York
In its statem en t for D ecem ber 31,
th e Chemical B ank & T ru st Com pany
rep orted deposits of $1,199,430,404, th e
highest in the b a n k ’s history. This
rep resen ts an increase of deposits of
$185,320,540 over D ecem ber 31, 1941.
T otal assets of $1,289,983,863 also
reached a new high and com pare w ith
$1,101,728,374 a t th e close of 1941. Cash
on h and and due from banks am ounted
to $348,841,631 com pared w ith $377,335,460; U. S. G overnm ent obligations
to $536,810,141 against $321,211,478;
b a n k e rs’ acceptances and call loans to
$54,397,121 against $34,218,090 and
loans and discounts to $162,982,846
against $156,455,076.
Capital rem ains unchanged a t $20,000,000 b u t su rp lu s shows an increase
from $50,000,000 to $55,000,000, reflect­
ing th e tra n sfe r on D ecem ber 10th of
$5,000,000 from U ndivided Profits to
Surplus, th e th ird such increase in
the p ast six years. U ndivided Profits
w ere $5,456,273 and, allow ing for th e
above tran sfer, show ed an increase for
the y ear of $1,294,549 after th e usual
dividends of $3,600,000 ($1.80 p e r
share). The indicated n et earnings
on th e b a n k ’s 2,000,000 shares (p ar
$10) am ounted to $2.45 p er share fo r
1942 as com pared w ith $2.43 per sh are
for th e preceding year.

31

Pressure for Earnings W ill Force

M û t6 B u yin g of Government Offerings
In D e c e m b e r
m any of us felt th e
w a r f o r th e first
tim e. Coffee w a s
ratio n ed — as w as
g a s o l i n e . T here
w as a shortage of
f u e l oi l .
The
change-over from a
ja m e s h . c l a r k e p eace
tim e econ­
om y to w ar is here
—1943 w ill provide a real o p p o rtu n ity
for ev ery individual to sacrifice. In
th e first six m o n th s of th e year, we
had c re a tu re com forts b u t w ith th em
we had th e losses of Singapore, B urm a,
and th e Philippines. W e h ad subm a­
rin e sin k in g s all along our coasts, th e
Jap an ese seized p ractically ev ery th in g
n o rth of A ustralia, C alifornia had a
to k en shelling—and L aval cam e to
pow er in F rance.
D espite all of these things, th e av e r­
age civilian did not feel th e w ar m uch.
T he m ach in ery of converting peace
tim e in d u stry to w a r tim e products
tu rn s over slowly, and w hile re m a rk ­
able progress w as m ade in the first six
m onths, th e co u n try as a w hole did
not have to give up its peace tim e
pleasures. B ut in th e final few m onths
th e re w as a change. The victories of
o u r A rm y and N avy—th e successes of
th e B ritish in N o rth Africa, and th e
R ussians in th e Don R iver sector
b ro u g h t increasin g confidence of u lti­
m ate victory. B ut w ith th is cam e th e
necessity of a real effort on th e hom e
fro n t—D ecem ber gave us some indi­
cation of th e shape of th in g s—b u t 1943
w ith h ig h e r taxes, g re a te r w a r ex­
penses, and a d im inishing supply of
civilian goods w ill provide th e real
test.
A s w as to be expected, com m on
stock s w ere w eak in the early m onths
of the year. The dow n trend w as con­
tinu ous u n til early in May w h en the
D ow -Jones A verage for In du strial
Stocks hit a low p oint of 92.92. B u t
th at w as th e low point for the year,
and a steady but unsp ectacular recov­
ery folloAved—at y esterd ay’s close, D e­
cem ber 30th—the average had reached
119.56. D ecem ber itself w as a good
m onth for stock s. U n lik e p revious
years, there w as little sellin g of stocks
to estab lish tax losses—w ith ou t th is
pressure, prices rose. A s of N ovem ber

The Month's Market Maneuvers
Prepared for
The Northwestern Banker

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

30tli the Dow-Jones in du strial stock
average w a s 114.95— yesterd a y ’s close
w as 119.50. In the tw enty-five days
of trading (there is ju st one day left
as we w rite th is in tim e to m eet our
dead lin e) prices w en t up on se v en ­
teen days, and dow n on eight. There
w ere five days in the m onth w hen
volum e of trading exceeded one m il­
lion shares— an excep tion ally good rec­
ord com pared w ith p revious m onths.

The stock m arkets, w h ich are sensi­
tive indicators of confidence or fear
the w orld over, have sh o w n sharp de­
clines in the A x is countries— despite
rigid go vern m en t controls— and im ­
p ro vem en ts in the m arts of the U nited
Nations. Japan has recently closed its
exchanges— at least for the tim e being
■
— w hile on the other hand, prices on
the London Stock E xchange are now
at the highest level in alm ost five years
— in fact, alm ost 100 per cent above the
low established on June 26, 1940 after
D u n kirk. A long w ith the feeling of
confidence of the u ltim ate success of
our arm ed forces, the stock m a rkets
have become quite selective. In recent
w eeks investors have indicated a p ref­
erence for the so-called “peace” stocks
— the ones w hich w ill do best after the
war. Or saying the sam e th ing— but
in reverse order— the feeling has
grow n that stocks w hich have been
aided by w ar orders have seen their
best days.
T hus the stock m a rket closed the
year on its m ost optim istic note. N ot
th at investors feel that it is all over—
certainly everyone who is not totally
blind can see m a n y m a n y m o n th s of
the toughest kin d of fighting ahead—
but the U nited N ations have seized the
offensive and the m a rkets a ttem p t to
reflect the developm ents of a year from
now ra th er than the m om ent. Increas­
ing taxes have restricted n et earnings

through 1942 — this w ill continue
through 1943. In m a n y instances this
has resulted in lower dividends. B u t
as w ar expenditures m o u n t and price
ceilings edge upw ard, the bogey of in ­
flation becomes a m ore tangible con­
sideration in the stock m arket.
In 1942 all previous production rec­
ords w ere broken. 1943 w ill again
b reak them . By th e year end, about
50 p er cent of all production w as for
w ar purposes—th is figure w ill increase
in 1943—and by th e sam e token, pro­
duction for civilian needs w ill be les­
sened. It is not at all unlikely th a t
production devoted to th e use of in­
dividuals m ay be less th a n 30 p er cent
of th e total. The m iracle of th e w ar
effort is reflected in th e production
index of the F ed eral R eserve Board—
(the base period of 1935 th ro u g h 1939
equals 100)—th e figure in A ugust, 1939,
th e m onth before th e w ar broke out in
E urope, being 105 com pared w ith 190
now. It is anticipated th a t th is index
w ill continue to rise in 1943, a figure
of 220—w hich w ould sh a tte r all rec­
ords—is freely predicted.
W hile there w as som e m unicipal and
corporate financing in Decem ber, it
w as so over-shadow ed by the Treas­
u ry ’s drive to raise nine billion s that it
passed alm ost unnoticed. The Treas­
u ry ’s su ccess in sellin g tw e lv e b illion s
in secu rities—topping its b est expecta­
tion s— m eans no n ew financing u n til
March or A pril of 1943. There is, of
course, an issue of a billion and a half
of Certificates of In debted ness w hich
m atures on F ebruary 1st—these w ill
probably be refunded in kind and the
am ount m ay be stepped up to tw o b il­
lion s—but by and large, the Treasury
is now w ell fixed for funds.

The Treasury expects to spend $100,000,000,000 in 1943— practically all of it
in our w ar effort— in 1942 about half of
this am ount was sp ent for arm am ents.
This m eans som ew h at higher taxes but
m ore than that, it m eans certain sub­
stantial offerings of bonds— and con-,
tinned purchases of g o vernm ents by
all banks. B anks outside of N ew York
and Chicago w hich have been som e­
w hat hesitant about placing large
am ounts in govern m en t bonds w ill buy
m uch m ore in 1943. W ith the outlook
Northwestern Banker


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

January 19b3

32
for fu r th e r declines in loans w hile de­
posits increase during the year, it is
apparent that the pressure fo r earn­
ings w ill force banks to buy m ore
bonds. Since there w ill be substantial
offerings of go vern m en t obligations
and ju s t occasional issues of m u n ic i­
pals and corporates, it is readily appar­
en t w here the buying w ill be directed.
The colored fellow w ho said, “I al­
w ays cooperates w ith the inevitable”
expressed better than w e can the pro­
gram for banks’ in v e stm e n ts in the
com ing year.

Bank Money Orders
P lans w hereb y the b anks of th e
n atio n m ay extend th e ir service to th e
public by satisfying th e grow ing
dem and for m oney ord er tra n sfe rs have
been sub m itted to m em bers of the
A m erican B ankers A ssociation by th e
A ssociation’s B ank M aagem ent Com­
m ission in a new booklet devoted to
th a t subject. The booklet outlines two
plans of operation and contains speci­
m en form s th a t it recom m ends. In
each case, how ever, th e m oney order
form itself is th e same. In an in tro ­
ductory statem en t th e com m ission
points out th e m u tu al benefits to be
obtained from th e in stallatio n of th is
type of service.
“W ith m illions of soldiers now

located in arm y cam ps and w ar w o rk ­
ers in w ar plants in new localities, th e
need for a convenient m ethod of tra n s ­
m ittin g funds is increasing from day
to day,” it says. M any soldiers and
w o rk ers now have no banking con­
nections, b u t have a definite need for
some m ethod of sending m oney hom e
and paying bills. Obviously, it is to
th e m u tu al advantage of th e banks and
th e public to serve th is new field for
ban k in g service.
“If th e banks of th e co untry w ere to
handle this m oney order business, it
w ould not only brin g in added gross
revenue, b u t w ould re su lt in other
advantages w hich accrue as a resu lt of
m aking contacts w ith new banking
custom ers.”
U nder th e com m ission’s plan, m oney
orders issued by th e banks w ould be
for am ounts not exceeding $100, would
have no tim e lim it, w ould be paid at
par, and w ould entail a cost of ten
cents each to purchasers.

Additional Cooperation
D irectors of th e F irs t N ational B ank
in St. Louis at a m eeting held last
m onth, voted additional com pensation
to em ployes in service p rio r to Ja n u a ry
1, 1942, equivalent to one-half m o n th ’s
salary, and adjusted am ounts for
others. T his is on th e sam e basis as

in previous years. The directors also
declared a dividend of $1.00 p er share,
60 cents of w hich w as payable Decem­
ber 21st to stockholders of record
Decem ber 15th, and 40 cents payable
F e b ru a ry 27, 1943, to stockholders of
record F e b ru a ry 23rd. The dividend
declared is th e sam e as for th e p rev i­
ous year.

Lest W e Forget—
To Remember
The D ecem ber V ictory Loan D rive
is h isto ry as th is issue goes to press.
The largest single borrow ing program
of all tim e, $9,000,000,000, has been over­
subscribed by possibly as m uch as
$2,000,000,000. T ru ly a g rand job re p ­
resen tin g th e response of banks, in su r­
ance com panies, corporations and m en
and w om en of all degrees of w ealth
and in all w alks of life. T he call w en t
out and A m ericans responded.
B ut th ere w ill be an o th er call. The
financing of th is w ar w ill be finally
accom plished after th e final V ictory
has been won. B ankers are going to
be constantly in th e field in this, th e
financial side, of th e w ar effort. N ot
only th e actions b u t th e v ery th in k in g
of th e ban k ers of the co u n try m ust be
geared to the task. Because of th at, it
seem s fitting to set out again, if you

C ity N ational B ank and T ru s t C om pany
of C hicago
Condensed S ta t e m e n t of Condition, D ecem ber 3 1 , 1 9 4 2
L IA B ILITIES

RESOURCES
$ 66,240,495.16

Cash and D u e from B an k s
U . S. G overnm ent Secu rities

101,770,611.28

.

State, M unicipal, and O ther Secu rities .
L o a n s and D isc o u n ts

.

.

.

.

8,625,546.38
54,531,147.94

F ed eral R eserve B ank S tock

234,000.00

A ccrued I n t e r e s t .....................................

372,067.61

C a p i t a l ...............................................................

443,610.81

Credit and A ccep tan ces
O ther R e s o u r c e s .....................................

S u r p l u s ................................................................

4,000,000.00

U n divided P r o f i t s .....................................

314,024.93

R e serv es for In terest, T a x e s, and
C o n t in g e n c i e s ..............................................

M ay 1, 1943

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

40,974.38

O u t s t a n d i n g ..............................................

80,000.00

472,158.90

O ther L i a b i l i t i e s .....................................

51,273.16

D e p o s i t s .......................................................

222,107,232.16

Member Federal Deposit Insurance Corporation


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

1,233,764.41

D ivid en d P ayab le F eb ru ary 1, and

$232,258,453.56

January 1943

4,000,000.00

L etters of Credit and A ccep tan ces

C u stom ers’ L iab ility on L etters of

Northwestern Banker

$

$232,258,453.56

33
have seen th em before, opinions of th e
b a n k e rs’ position.
W. L. H em ingw ay, p resid en t of th e
A m erican B an k ers A ssociation, said,
“G etting m oney from th e F ed eral
R eserve B anks is th e easy w ay, b u t it
w ould be only one step ahead of
financing by p rin tin g pap er money.
“T he only sound w ay,” he said, “ is to
get th e m oney from th e people of th e
U nited States. T h a t is th e T re a su ry ’s
in ten tio n , and th a t is w h at b an k ers
w ant. T he b a n k e rs’ job is to assist in
th e sale of gov ern m en t bonds.”
E d w ard E. B row n, president, F irs t
N ational B ank of Chicago, said, “The
financing of th e g o v ern m en t’s w ar
deficits tak es precedence over th e
norm al peacetim e desire of b an k ers
to build up th e ir deposits.” He urged
corporations and individuals to use
th e ir idle deposits to b u y g o vernm ent
securities. A corporation, he said,
should use those funds on balance,
over th e ir needs for c u rre n t operation,
to p u rch ase sh o rt te rm g o vernm ent
securities, and individuals should draw
on th e ir savings deposits to do th e ir
sh a re of th e g o v ern m en t’s w artim e
financing.
J a y N. W hipple, p resid en t of th e
In v e stm e n t B ankers A ssociation, de­
clared th at, in his opinion, idle deposits
could p ay for th e w ar. P o in tin g out
th a t depositors of th e n atio n have
c u rre n t balances exceeding $65,000,000,000, indicating th a t “m any have m oney
in th e b an k s over and above any
reasonable reserv e needs.” He also
poin ted out th a t g o v ern m en t figures
indicate th a t excess of incom e of in d i­
viduals over living costs w as ru n n in g
n early $4,000,000,000 m onthly.
P hillip R. Clarke, ch airm an of th e
executive com m ittee of th e Chicago
C learing H ouse A ssociation, said,
“W ith in th e b an k in g system th e re is
th e ab ility to finance th e en tire re q u ire ­
m en ts of th e w ar, b u t th a t m ethod
w ould re su lt in a serious degree of
cred it inflation and add g reatly to th e
d an g er of u ncontrollable price rises.”
M em ber b an k s of th is A ssociation, he
said, are appealing to th e ir depositors
to d raw on th e ir b an k balances to
finance bond purchases.
C.
S. Young, p resid en t of th e Seventh
F ed eral R eserve B ank of Chicago, has
rep eated ly called on every b an k er of
th e d istric t to m eet th e situ atio n
sq u arely and bend his every effort to
m eeting th e job ahead.
T his financing is of th e p re se n t and
for th e fu tu re. The m en and w om en
of th e arm ed services m u st be clothed,
fed, paid and supplied w ith th e best in
q u ality and g re a te st in q u a n tity of
fighting tools. T h a t is th e p resent.
The m ore successful is th e effort to
sell bonds to th e public, th e g reater th e

They Bought Victory Bonds Here

The L iv e Stock N a tio n a l B ank o f Chicago to o k a n a c tiv e p a r t in th e re c e n t
su c c essfu l c am p a ig n w h ic h re s u lte d in th e sale o f m ore th a n tw e lv e b illio n
d o lla rs ($12,000,000,000) w o rth of U n ite d S ta te s G o v e rn m en t V ic to ry B onds,
a cc o rd in g to D avid H. Reim ers, p re sid e n t. T he officers a n d em ployes of th e b a n k
n o t only so lic ite d o rd ers b y m ail a n d tele p h o n e, b u t m ade p e rso n a l calls to sw ell
th e s u b s ta n tia l to ta l of g o v e rn m e n t s e c u ritie s sold in th e te r r ito r y serv ed .

BONDS
Public Utility
Industrial
Railroad
Municipal

A.C.ALLYNandc o m p a n y
Incorporated
100 W e s t M onroe S tr e e t, C h ica g o
N e w Y ork
B e p r e s e n t a t iv e s :

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

O m aha
D es M oin es

B o sto n
C ellar R a p id s

N orthw estern Banker

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

January 1943

34
percentage of th e new borrow ings th a t
can be placed w ith non-bank buyers,
th e b ette r w ill be th e condition of th e
b an kin g system to m eet fu tu re and
post-w ar dem ands.
Borrow ings for -the balance of th is
fiscal y ear (ending Ju n e 30, 1943) will
ru n at th e m onthly ra te of 4% to 5
billion dollars. The 1943-44 fiscal y ear
(Ju ly 1 to Ju n e 30) m ay easily see th e
m onthly ra te of borrow ings advance
to 6 or 6% billions of dollars. The
size, th e purpose, th e u rgency and th e
im plication of th e job ahead are in d i­
vidually and collectively a challenge
to every banker.

Surplus Increased
T he su rp lu s of th e A m erican N a­
tional B ank and T ru st Com pany of
Chicago has been increased from
$2,000,000 to $2,500,000, th ro u g h tra n s ­
fer of $500,000 from th e undivided
profits account. T his action w as an ­
nounced by L aw rence F. Stern, p resi­
dent, following a m eeting of th e b an k ’s
board of directors. T he capital, surplus
and undivided profits of th e bank now
total over $4,800',000.
It w as nine y ears ago last Decem ber
4th th a t the A m erican N ational B ank
m oved to LaSalle Street, tak in g over

banking q u arters at th e southw est
corner of LaSalle and W ashington
w hich have since been expanded to
five floors in th is building. Deposits
w hich at th e tim e of m oving in 1933
w ere $13,528,000 are now approxim ately
$

100, 000 , 000 .

Surplus in 1933 totaled $250,000,
w hich has since grow n to th e presen t
figure of $2,500,000, all increases being
m ade out of earnings. A nother in te r­
esting com parison over th e nine-year
period is th e am ount of governm ent
securities included am ong th e b a n k ’s
assets. The total holdings at th e close
of 1933 w ere $4,602,000. Now the b a n k ’s
ow nership of obligations of th e U nited
States governm ent and its agencies are
in excess of $42,000,000 w hich is an
indication of the im p o rtan t p a rt com­
m ercial banks are playing in th e gov­
ern m e n t’s w ar financing program .

Fortieth Dividend

W

The directors of th e Tw in City
F ederal Savings and Loan Association,
M inneapolis, have declared a sem i­
an n u al dividend at th e ra te of 3 per
cent per annum , payable Ja n u a ry 1,
1943, according to announcem ent by
Roy W. Larsen, vice president. This
is the association’s fo rtieth consecutive
dividend since its organization in 1923.
Since 1936 dividends have co n tin ­
uously been at th e ra te of 3 per cent
p er annum .
R esources of the association are now
in excess of $18,500,000, according to
Mr. L arsen, and m em bers’ accounts
have increased m ore th a n th ree m illion
dollars du rin g 1942. This grow th is in
excess of th e sam e period d uring 1941
w hen th e association had the largest
increase in m em bers’ accounts of any
F ed eral A ssociation in th e U nited
States.

the farmer the soldier wouldn’t travel fa r ; without
the soldier the farmer would be farming for the Axis.

ITHOUT

In 1942 the combination of good weather and the hard work
of farm families all over the country produced the biggest
crops on record. Those crops, together with the record
breaking production of livestock, are helping win the war.

Transfer to Surplus
The directors of th e Chem ical B ank
& T ru st Company, New York, have
approved th e tra n sfe r of $5,000,000
from undivided profits account to su r­
plus account. The capital stru c tu re of
th e b ank now consists of $20,000,000
capital stock, $55,000,000 surplus, and
$5,208,789 undivided profits, m aking a
total of $80,208,789. This is th e th ird
increase in th e last six years by tra n s ­
fer from undivided profits to surplus,
$5,000,000 increases having been m ade
on D ecem ber 24, 1936, and December
15, 1938.

More food, fiber and vegetable oils will be needed in 1943.
It’s going to be a harder job. W e can’t count on such good
weather again. The labor supply will be short and less new
machinery will be available. But our farm families are out
to do the job regardless of the difficulties.
Fortunately, there’ll be no shortage of credit for the sound
operators. City dollars will flow to farmers through the Federal
intermediate credit banks and local lending institutions. Buyers
of Federal intermediate credit bank debentures are, there­
fore, aiding in the battle of production on the farm front.

THE FEDERAL INTERMEDIATE CREDIT BANKS
SPRINGFIELD, MASS.
BALTIMORE, MD.
COLUMBIA, S. C.

ST. PAUL, MINN

HOUSTON TEX

NEW ORLEANS, LA.

LOUISVILLE, KY.

OMAHA, NEB.

BERKELEY CAL

ST. LOUIS MO

WICHITA, KAN.

SPOKANE

WASH

F u r t h e r in fo r m a tio n r e g a r d in g th e D e b e n tu r e s m a y b e o b t a in e d fro m

CHARLES R. DUNN, F is c a l A g e n t

N orthw estern B anker

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

January Í9J3

31 Nassau Street, New York, N. Y

The board declared th e reg u lar
q u a rte rly dividend of 45 cents a share
on th e b an k ’s capital stock, payable
Ja n u a ry 2, 1943, to stock of record
D ecem ber 15, 1942.

Paul Winegardner Dies

Streamlined Meeting

P aul R. W inegardner, assista n t vice
p resid en t of th e Live Stock N ational
B ank of Chicago, died suddenly last
m onth of a h e a rt atta c k at th e age of
54. H e w as a m em ber of th e corre-

The A m erican In stitu te of B anking
w ill hold a one and a half day annual
m eeting in Chicago n ex t June, it
w as announced by David E. Simms,
national presid en t of the In stitu te, who
is acting assistan t m anager of th e Salt
L ake City branch of th e F ederal
R eserve B ank of San Francisco. This
m eeting, to be held Ju n e 9-10, w ill be
th e 41st ann u al convention of th e In sti­
tute. In m aking the announcem ent
Mr. Simms stated th a t this 41st annual
convention w ill be in th e n a tu re of a
stream lined m eeting held to tran sact
essential business of the In stitu te and
to elect officers. He also said th a t th e
plan for th e m eeting follows th e prac­
tice adopted by th e In stitu te d uring
th e F irs t W orld W ar, w hen it held a
one day m eeting in Chicago.
E ach ch ap ter and study group has
been requested to lim it its re p re se n ta ­

tion to a single delegate clothed w ith
full au th o rity to cast th e n u m ber of
votes to w hich th e ch ap ter or study
group is entitled. In this w ay th e
In stitu te plans to cooperate w ith the
req u est of th e Office of Defense T ran s­
p o rtatio n to cu rtail trav el incident to
th e holding of conventions and to avoid
tak in g m em bers aw ay from th e ir desks
for any longer tim e th a n is actually
necessary.
In voting to hold a skeletonized
annual m eeting th e E xecutive Council
of th e In stitu te acted u n d er a u th o rity
vested in it by resolutions adopted at
the annual convention in New Orleans
on Ju n e 11, 1942. The general outline
of th e convention program calls for a
single business session, a ch ap ter
ad m in istratio n conference, an educa­
tional conference, th e holding of th e
n ational public speaking contest, and
election of officers.

Victory requires
PAU L

R. W IN E G A R D N E R

spo n d en t division of th e b an k for th e
last 14 years, and w as w ell know n
am ong b a n k ers th ro u g h o u t th e Middle
W est. Before join in g th e Live Stock
N ational B ank he w as for several
y ears w ith th e F ed eral R eserve B ank
of Chicago. In th e last w ar he served
in th e U. S. navy. F u n e ra l services
w ere held a t H illsboro, Ohio, w h ere he
w as born.
With the rej uve nating inine ra I waters,
|;;||||ound here at America’s greatest spa
eyery thrilling oijfdpor activity of the
fall season is waiting to be enjoyed by
LLEIhis Hotel guesfS#jVVrite today for de• scriptive literature.

Adds $5,000,000 to Surplus
The board of d irectors of The F irs t
N ational B ank of Chicago have de­
clared th e re g u la r dividend of $2.50
p er sh are on th e capital stock of th e
bank, w hich w as paid J a n u a ry 1, 1943,
to stockholders of record D ecem ber 23,
1942. The directo rs also tra n sfe rre d
$5,000,000 from undivided profits to
surplus, m aking it $50,000,000. The
capital stock of th e b an k rem ain s at
$30,000,000.

EXCELSIOR

SPRING S mo

S carborough ¿ C o MPANY
*
First National Bank Building. Chicago

Horace A. Smith, Iowa Representative
Des Moines, Iowa

N orthw estern Banker

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Federal Reserve Bank of St. Louis

January 19J3

36

b u t NO CHANCE in s e rv ic e
Effective January 1, 1943, the name o f the
First N ational Bank and Trust Company of
M inneapolis was changed to a shorter,
sim pler fo rm . . . FIRST N A T IO N A L BA N K
OF M INNEAPOLIS.
T his change, made solely for the sake of
brevity and convenience, does not signify
any curtailment o f the bank’s services. The
First N a tio n a l’s Trust D epartm ent w ill retain
the same powers a n d perform the very same
services as before. All other departments of
the bank w ill lik ew ise continue to function
without change or interruption.
N o First N ational custom er w ill be in con ­
venienced in any way. Checks, savings pass
books, and other forms bearing the name of
First N ational Bank and Trust Company of
M inneapolis w ill be honored just the same
as if they bore the bank’s new, shorter name.

N AM ES

OF

O F F IC E S

AND

A F F IL IA T E S

—Each o f the four First N ational offices in
M inneapolis w ill operate under the new
name—First National Bank of Minneapolis.
They w ill still be designated respectively
as the Main, St. Anthony Falls, N orth Side,
and W est Broadway Offices.
—There w ill be N O CHANGE in the names
of the four M inneapolis banks that are
affiliated w ith the First National.
H IS T O R IC A L

NOTE

It is interesting to note that, with this
change in title, the First N ational resumes
the name under w hich it was established
78 years ago, in Decem ber, 1864. . . . In fact
as w ell as in name, this was the first national
bank established in M inneapolis.

From N ew Y e a r’s D ay onward, it ’s the

First National Bank of Minneapolis
Member F e d e r a l D e p o s it In su ra n ce C o rp o ra tio n
AFFILIATED WITH FIRST BANK STOCK CORPORATION

'Northwestern Banker

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Federal Reserve Bank of St. Louis

January 1943

37

Cambria Bank Liquidates

M IN N E S O T A
NEWS
L. 0 . OLSON
P r e s id e n t
M in n e a p o lis

Pioneer Banker Dies
E d w ard Zapp, of St. Cloud, p resid en t
of th e Zapp S tate B ank, died last
m onth.
H ad Mr. Zapp lived he w ould have
been 70 on D ecem ber 31st.

Declares Dividend
A sem i-annual dividend at th e rate
of 3 p e r cent y early has been declared
by directo rs of th e T w in City F ederal
S avings and L oan A ssociation of M in­
neapolis.
T his is th e association’s 40th con­
secutive dividend since 1923.
R esources of th e association, accord­
ing to Roy W. L arsen, vice president,
a re over $18,500,000 and accounts w ere
increased m ore th a n $3,000,000 last
year.

W IL L IA M D U N C A N , J r .
S e c r e ta r y
M in n e a p o lis

apolis, w as elected president. Mr.
R ingland has become presid en t of th e
E m pire N ational B ank and T ru st Com­
p any of St. Paul.
Mr. Sm ith has had a wide experi­
ence in th e banking business. He w as
b o rn in W ibaux, M ontana, and en ­
gaged in th e banking business in east­
ern M ontana a t B aker and a t H ardin
u n til 1924, w hen he w as appointed dep­
u ty b ank exam iner for th e state of
M ontana, in w hich capacity he served
u n til en terin g th e em ploy of the N o rth ­
w est B ancorporation in 1930. In 1936

New Assistant Cashier
R. A. W rucke of M innesota L ake is
th e new a ssista n t cashier a t th e F irs t
S tate B ank of R ochester.

Elected Cashier
R ussell Jo h n so n has been elected
cash ier of th e W in th ro p S tate Bank,
succeeding E. W. Olson, w ho w as
forced to resig n on account of failing
h ealth. Mr. Jo h n so n has been a ssist­
a n t cashier th e re since May 1, 1941.

Heads Stock Yards National
of South St. Paul
A t a m eeting of th e board of direc­
to rs of th e Stock Y ards N ational B ank
of South St. Paul, held last m onth,
J. F. R ingland, w ho has been p resid en t
of th e b ank for th e p ast six years, sub­
m itted his resig n atio n as president,
and R. L. Sm ith, vice p resid en t of th e
N o rth w est B ancorporation of M inne­

Retired Banker Passes
C.
W. H eim ann, 75, for m any y ears
w ell know n b an k er a t F airfax, died
last m onth in a New Ulm hospital. Mr.
H eim ann had been in ailing h ealth for
a n u m ber of m onths.

Mower C o . Bankers Organize
The M ower C ounty B ankers Asso­
ciation is an organization form ed for
m utual discussion and agreem ent on
banking problem s of th e com m unity.
George M. Reppe, G rand Meadow,
is president, w hile A. P. G arnatz, Lyle,
is vice president, and Al H. H aakenson,
A ustin, is secretary-treasurer.
The in stitu tio n s w hich are m em bers
of th e association include th e A ustin
State B ank and th e F irs t N ational
B ank of A ustin; F arm ers State Bank,
E lkton; F irst State Bank, G rand Mead­
ow; State B ank of Rose Creek, Rose
Creek; th e F irs t State B ank and th e
F irst N ational Bank, of LeRoy; S tate
B ank of Sargeant, Sargeant; S tate
B ank B row nsdale, Brow nsdale; and
the F arm ers State Bank, Lyle.

New Employe

Bank President Dead
F u n e ra l services w ere held last
m o n th for W. J. Lew is, 82, p resid en t
of th e S ecurity State B ank of P illager.
Gus E. Parsons, cashier, and F ra n k
Sw anson, vice p resid en t of th e P illager
bank, atten d ed th e funeral.

The Cam bria State Bank, w hich w as
organized in F eb ru ary , 1919, th ro u g h
th e assistance of a n um ber of parties
from New Ulm w ho w ere affiliated
w ith th e Citizens State Bank, is now
liquidating.
Some w eeks ago, it is understood,
the stockholders voted to liquidate the
ban k and w ind up th e affairs of the
in stitution. It is sound financially b ut
w ith p resen t conditions and th e ex­
penses of conducting all business
m ounting, it w as decided to liquidate
th e bank and close up its affairs.
Dan W. H arris w as th e first presi­
dent of the new ly organized bank in
1919 and has since been president.

R. L. S M IT H

P resid en t, S tock Y ards N ation al Bank,
Sou th St. P aul

he w as m ade a ssistan t vice presid en t
of th e N orthw est B ancorporation and
becam e vice presid en t in 1941.
Mr. Sm ith is 43 y ears of age, is m a r­
ried, and a t th e p resen t tim e m akes
his hom e in M inneapolis.
Serving w ith Mr. Sm ith w ill be A. A.
Bibus and J. C. Moore, vice presidents;
J. G. M cG arraugh, cashier; C. W. Mes­
senger and A. T. Larson, assistan t
cashiers. The board of directors w ill
rem ain unchanged, except for the ad­
dition of Mr. Smith.

W ilfred O. U eland of Redwood F alls
has joined th e staff of em ployes of the
Security N ational B ank in M ontevideo.
Mr. U eland has had banking experi­
ence at Cottonwood, W estbrook, Red­
wood Falls and w ith th e B ank of
A m erica in California.

Bank Merger
The State B ank of M ahtow a w as
m erged last m onth w ith the State
B ank of B arnum .
Due to business conditions and w ith
th e increasing am ount of cash reserves
banks are accum ulating, and w ith a
scarcity of good loans for investm ent,
the m erg er w as decided upon. The
stockholders of the S tate B ank of M ah­
tow a decided th a t B arnum w ould be
th e m ost convenient place for the peo­
ple of M ahtow a and its su rro u n d in g
te rrito ry to tra n sa c t th e ir business.
N orthw estern B anker


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

January 19b3

38

The MIDLAND Dedicates All Of Its Resources
To The Successful Prosecution Of The War
As A m erican farm ers an d industry h a v e achieved new goals
in production for w ar, A m erica's ban k s h av e kept p a c e by
providing new kinds of loans, leadership in the sale of W ar
S avings Bonds, an d b y investing their own resources in
G overnm ent securities. The resources of this b an k are d ed i­
cated to the achievem ent of Victory an d a lasting peace.

DIRECTORS
N. C. BEIM
Chairman of the Board, W. H. Barber Co.

Condensed Statement of the Condition of the Midland
National Bank and Trust Company, December 31, 1942

FREDERIC B. CARR
President and Treasurer, Hallet & Carey Co.

RESOURCES

H. S. GREGG
Chairman of the Board, Gregg Manufacturing Co.

Cash and Due from Banks...................................................................... $12,311,038.18
United States Government Securities.......................$18,269,049.80
Other Bonds and Securities..................................... 1,777,774.28
20,046,824.08
Loans and Discounts..............................................................................
Income Earned but not Collected..........................................................
Furniture and Fixtures............................................................................

8,920,139.62
63,603.92
69,054.98
$41,410,660.78

LIABILITIES
Deposits ..........................................................................
Reserves for Accrued Interest, Expenses and Taxes.
Income Collected but not Earned..................................
Capital Stock .................................................................$1,000,000.00
Surplus ..........................................................................
700,000.00
Undivided Profits .........................................................
89,432.71
Reserve for Contingencies........................................... 263,939.83

G. L. HEEGAARD
President, Mandan Mercantile Co.
W. C. HELM
Vice President, Russell-Miller Milling Co.
CHARLES B. JORDAN
President and Manager, Jordan Stevens Co.

$39,190,238.48
90,700.52
76,349.24

2,053,372.54
$41,410,660.78

TJ. S. Government and Other Securities carried at $9,506,697.77 are pledged, to
secure public deposits and trust funds and for other purposes, as required by law.

EDGAR L. MATTSON
Chairman of the Board
BEN C. McCABE
President, McCabe Brothers Co.
President, International Elevator Co.
h . clay McCartney
Treasurer, Toro Manufacturing Co.

J. R. RANDALL
President, Reserve Supply Co.

OFFICERS

MAURICE SCHUMACHER
Building Contractor

EDGAR L. MATTSON, Chairman of the Board
ARNULF UELAND, President
W. E. BROCKMAN
Vice President
LAWRENCE O. OLSON
Vice President
ROBERT S. STEBBINS
Cashier
WILLIAM R. CHAPMAN
Assistant Cashier
E. WALTER ENGSTROM
Assistant Cashier

JAMES A. GALBRAITH
Assistant Cashier
VICTOR W. MASER
Asst. Cashier and Asst. Trust Officer
CLIFFORD C. SOMMER
Assistant Cashier
EVERETT L. THOMPSON
Assistant Trust Officer
FRANK W. PETERSON
Auditor

SAMUEL SEWALL
Treasurer, Minneapolis Iron Store
ARNULF UELAND
President
PAUL E. VON KÜSTER
President, David C. Bell Investment Co.
JAMES C. WYMAN
Vice Pres., St. Anthony & Dakota Elevator Co.

MIDLAND
NATIONAL BANK AND TRUST COMPANY
o f M in n e a p o lis
SECOND AVENUE SOUTH AT FOURTH STREET
M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

N orthw estern B anker

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

January 19J3

39

Twin C ity News

lU L IU S S. POMEROY, 75, promivJ n e n t M inneapolis b an k er and vice
presid en t and d irecto r of F irs t N a­
tional B ank & T ru s t Co. since 1915,
died early in D ecem ber a fte r several
m o n th s of failing health.
He also w as m anager of th e M inne­
apolis C learing H ouse A ssociation, a
post he had held since 1916, a p ast
p resid en t of th e M innesota B ankers
A ssociation, and w as active in civic
and fra te rn a l circles.
B orn in B rooklyn in 1867, he sta rte d
his b an k in g career a t th e age of 16
in H om er, N. Y. He su bsequently
w as connected w ith th e F irs t N ational
of Cortland, N. Y., and in 1892 w as
assista n t cashier of F irs t N ational
Bank, W inona, M inn. In 1902 he be­
cam e cashier of th e N ational B ank of
N o rth A m erica, Chicago, w hich tw o
years la te r w as m erged into w h a t is
now the C ontinental Illinois B ank &
T ru s t Co.
R e tu rn in g to M inneapolis in 1904,
he becam e cashier of th e Security
Bank. T his w as m erged in 1915 w ith
F irs t N ational and he becam e vice
p resid en t and director, th e post he
held u n til his death.
Mr. Pom eroy w as p resid en t of
M innesota B an k ers A ssociation in
1913-14.
John de Laittre, tre a s u re r of F a rm ­
ers & M echanics Savings B ank, M in­
neapolis, has been elected directo r of
th e F in an cial A dvertisers Association.
John S. B aum an, form erly head of
th e M inneapolis in v estm en t house
w hich bore his nam e, has been elected
vice p resid en t of th e A rgus R esearch
Corp., New York. He w as one of the
founders and first p resid en t of th e
T w in City Bond Club, and w as con­
nected w ith AVells-Dickey Co. 14 y ears
before estab lish in g his ow n firm six
y ears ago.
Otis R. P reston, a ssista n t vice presi
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

By James M. Sutherland
Special Correspondent

den t of M inneapolis F ederal R eserve
B ank, has resigned his post as ch air­
m an of the em ployers’ com m ittee of
th e M inneapolis W ar Savings Com­
m ittee and w ill aid in th e V ictory
F u n d Com m ittee cam paign for sale
of larger denom ination governm ent
securities.
Second an n u al assem bly of F irs t
N ational B ank & T ru st Co. officers
and em ployes bro u g h t out 750 p er­
sons from th e bank and its affiliated
in stitutions.
L ym an C. W akefield,
president, w as th e only speaker. It
w as held at N icollet Hotel.
G. J. C aldw ell has been nam ed St.
P au l regional m anager of th e V ictory
F u n d Comm ittee, according to a n ­
n ouncem ent by P aul W . Loudon, ex­
ecutive m anager of th e N orthw est
V ictory F u n d Com m ittee. Caldwell
has tak en leave from his St. P aul in ­
v estm en t house, Caldw ell-Phillips Co.,
to devote full tim e to his new w ork,
w hich is directing com m ittee activities
in sale of governm ent securities in the
St. P aul region.
F ritz T huftedal has been m ade as­

sista n t cashier of Columbia H eights
State Bank, according to announce­
m ent by H erbert W oodward, cashier.
T huftedal w as w ith F idelity State
Bank, M inneapolis, for eight years,
th e n w ith th e M innesota ru ra l credits
d ep artm en t th ree and a half y ears be­
fore joining th e Columbia H eights
B ank last June.
H om er D. Sharratt, exam iner for the
F ed eral R eserve B ank of M inneapolis
for 18 years, died early in D ecem ber
at his hom e in M inneapolis.

Tw in City Bond Club, at its ann u al
m eeting, elected T. Frank McGuire of
Driscoll-McGuire Co., St. Paul, p resi­
dent; Robert L. John of Thrall-W est
Co., M inneapolis, vice president, and
R. S. Juran of Ju ra n & Moody, St. Paul,
secretary-treasurer. All w ere selec­
tions of the club’s nom inating com­
m ittee.
T hree new governors, nam ed from
an all-M inneapolis list, w ere chosen
as follows: M errill M. Cohen of J. M.
Dain & Co., re tirin g secretary-treas­
urer; I. D. Owen, Allison-W illiams Co.,
and H. H. W ylie, W ells-Dickey Co.
Effective Ja n u a ry 1, 1943, F irst N a­
tional B ank and T ru st Company, Min­
neapolis, dropped the w ords “and
T ru st Com pany” from its nam e and
becam e know n sim ply as F irst N a­
tional Bank of M inneapolis.

Insurance Especially
Designed for Bankers
Health and accident policies with­
out frills, giving substantial pro­
tection cost only $2.00 per policy
paid up in full to the middle of
June 1943.
Thirty-seven years of success­
ful service has earned the highest
rating in the Insurance Digest for
financial stability, and loss pay­
ing record.
•

Minnesota Commercial
Men’s Association
2550 Pillsbury Ave.
Minneapolis, Minn.

Paul Clement, Secretary
N orthw estern Banker

January 19^3

40

•MINN ESOTA
Officials of th e b an k explained th e
change w as m ade solely for b rev ity
and convenience, as to th e b a n k ’s
tru s t departm en t, now in its fiftyeighth year, re ta in s its pow ers and
perform s its services as before.
T his is th e fo u rth change in nam e
th e b an k has m ade since its organiza­
tion in 1864 and re tu rn s to its original
form.
Serve y our com m unities, help th e
U nited States w in th e w ar, ru n good
bank s—and forget profits.
T h a t w as th e advice given by Otto
Brem er, ch airm an of A m erican N a­
tional Bank, St. Paul, to B rem er b a n k ­
ers from M innesota, W isconsin, Iowa,
N orth D akota and M ontana a t th e ir
an n u al year-end conference in St. Paul.
M. V. Choban, assista n t cashier of
D rovers E xchange S tate B ank, South
St. Paul, took office J a n u a ry 1st, as
p resid en t of th e K iw anis Club of th a t
city.
Dr. A rthur U pgren, recently-elected
vice p resid en t and econom ist of F ed ­
eral R eserve B ank of M inneapolis,
w ill be one of th e principal speakers

E

m p ir e

N

NEWS«

a t th e m id-w inter m eeting of W iscon­
sin B ankers A ssociation in M ilwaukee,
J a n u a ry 20th and 21st.

Ringland Heads
Empire National
Alex H ighland, presid en t of T he E m ­
pire N ational B ank and T ru st Com­
p any of St. Paul, has retire d as presi­
den t of the bank, due to ill health. He
will, how ever, continue as a m em ber
of th e board of directors and chairm an
of th e board.
Mr. H ighland is succeeded as p resi­
den t by Joseph F. R ingland form er
p resid ent of th e Stock Y ards N ational
B ank of South St. Paul. B oth banks
are m em bers of th e N o rthw est Banco rporation Group.
Mr. R ingland w as born in W ayne,
N ebraska, w here he and his fam ily
w ere engaged in th e banking business
for a n u m ber of years. H e attended
school at Iow a State College at Ames,
Iowa. F rom 1924 to 1934 he w as em ­
ployed by the U nited States N ational
B ank of Omaha, N ebraska, and w as
elected a ssistan t cashier of th a t b ank
in 1929. F ro m 1934 to 1937 he w as vice
p resid en t of th e G reat Falls N ational

a t io n a l

B

a n k

and T

P r e s id e n t
E m p ir e N a ti o n a l B a n k
S t. P a u l

Bank, G reat Falls, M ontana, and since
1937 has been p resident of th e Stock
Y ards N ational Bank, South St. Paul.

rust

C

o m p a n y

ST. P A U L , M IN N E S O T A
S t a t e m e n t o f C o n d i t io n a s o f D e c e m b e r 3 1 , 1 9 4 2
RESO U RCES
Cash, due from F ed eral R eserve B ank and other B a n k s ....................................................................................................$ 5,387,989.47
U n ited S ta tes G overnm ent S ecu rities— D irect and F u lly G uaranteed— D u e w ith in 1 y e a r . . . ....................... 2,563,315.85
U n ited S tates G overnm ent Secu rities— D irect and F u lly G uaranteed— D u e after 1 but w ith in 3 y ea rs. . .
778,915.45
U n ited S tates G overnm ent Secu rities— D irect and F u lly G uaranteed— D u e after 3 but w ith in 5 y e a r s .. .
1,125,458.14
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 ithin 7 y e a rs. . .
414,600.00
U n ited S tates G overnm ent Secu rities— D irect and F u lly G uaranteed— D u e after 7 but w ithin 10 y ea rs. .
728,206.13
U n ited S tates 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.
204,300.00
M unicipal B o n d s— D u e w ithin 3 y e a r s ...........................................................................................................................................
236,400.23
M unicipal B o n d s— D u e after 3 but w ith in 5 y e a r s ....................................................................................................................
89,269.50
M unicipal B o n d s— D u e after 5 but w ithin 7 y e a r s ....................................................................................................................
46,500.91
O ther B on d s and S e c u r itie s..................................................................................................................................................................
277,642.14
L oan s and D is c o u n ts ............................................................................................................................................................................... 4,459,406.16
S tock in F ed eral R eserve B a n k ........................................................................................................................................................
30,000.00
In terest E arned but N o t C o lle c te d ..................................................................................................................................................
27,932.87
Furniture, F ix tu res and Safe D e p o sit V a u lts .............................................................................................................................
25,000.00
C ustom ers L iab ility on L etters of C red it.................................................................................................................................................2,900.00
T O T A L R E S O U R C E S ............................................................................................................................................$16,397,836.85
L IA B IL IT IE S
Capital S tock .............................................................................................................................................................................................$
Surplus ..........................................................................................................................................................................................................
U n divided 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 iscou n t C ollected but N o t E a r n e d ...............................................................................................................................................
L iability on L e tter s of Credit O u tsta n d in g ...............................................................................................................................

D Ptho ClTC*

500,000.00
500,000.00
161,595.20
35,154.03
33,396.86
2,900.00

‘ D em an d ................................................................................................................................................$13,375,666.23
T im e ......................................................................................................................................................
1,789,124.53
T o ta l D e p o sits .................................................................................................................................................................... 15,164,790.76
T O T A L L I A B I L I T I E S ........................................................................................................................................ $16,397,836.85
R ob ert at F ifth

N orthw estern B anker


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

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

January 19^3

St. P a u l, M in nesota

41
Mr. R ingland w ill continue as a m em ­
b er of th e board of directo rs of th e
Stock Y ards N ational Bank.

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

Clearing House Assn. Head
G lenn B lom quist, cashier of th e
N. W. S tate B ank of Dawson, w as
elected p resid en t of th e W est C entral
C learing H ouse A ssociation a t th e ir
an n u al m eeting held in M ontevideo.
H en ry Globstad, a ssista n t cashier, ac­
com panied Mr. B lom quist to th e m eet­
ing.

T h e F ir s t

Winthrop Banker Resigns
E. W. Olson, w ell-know n W in th ro p
resid e n t and b a n k e r for th e p ast 39
years, has been forced to resign as
cash ier of th e W in th ro p State Bank,
due to failing h ealth. He is now con­
fined to his home.

Ban k

O F S A IN T P A U L
as o f

Change in Staff
Two new em ployes began w o rk early
last m o n th a t the C itizens S tate B ank
in Redwood Falls.
E. H. Z im m erm an of M ankato re ­
places W illiam H uling as a teller. Mr.
H u lin g accepted a position at a Mon­
tevideo bank.
Also new a t th e b an k is E loise H ow ­
ell of Belview. She has a bookkeeping
position.

n a t io n a l

3

D ecem ber

1 >

I

942

•
R e so u r c e s

Cash on H and and Due from Banks

5 8 0 ,4 8 9 ,6 2 8 .2 2

U. S. Governm ent Securities

8 4 ,6 8 7 ,3 3 5 .9 2

Bonds and Securities

4 ,4 5 0 ,8 0 5 .8 2

Loans and Discounts

5 5 ,8 6 7 ,9 6 1.9 4

Interest Earned but not Collected

2 8 2 ,5 3 9 .8 7

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

10 8 ,9 7 5 .OO

Stock in Federal Reserve Bank

3 6 0 ,0 0 0 .0 0

Bank and Office Building

2 ,8 0 0 ,0 0 0 .0 0
5 2 2 9 ,0 4 7 ,2 4 6 .7 7

Fietsam Assistant Cashier
H en ry F ietsam of R ockville has
tak e n over d uties as a ssista n t cashier
a t th e S tate B ank of Cold Spring.
Before com ing to Cold Spring Mr. F ie t­
sam held a sim ilar position w ith th e
S tate B ank of Rockville.
Miss M ary Louise T erh aar, fo rm erly
a ssista n t cashier a t th e S tate B ank of
Cold Spring, is now em ployed in W ash ­
ington D. C.

New Assistant
The new a ssista n t at th e F irs t N a­
tional B ank of W innebago is H elen
Paffinger of Blue E a rth .

L ia b il it ie s

C apital Stock

5 6 ,0 0 0 ,0 0 0 .0 0

Surplus

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

Undivided Profits

2 ,7 7 0 ,0 8 1.0 3

Unallocated Reserves for Losses

1 ,2 3 8 ,7 6 6 .3 3

Reserve for Accrued Taxes, Interest and Expenses

7 7 8 ,3 5 6 .5 1

Reserve of M anufacturers and Others on
Notes purchased from them

433 , 9 I 3 -2 1

Discount Collected but not Earned

73 ,o 2 5 -9 i

Acceptances, Letters of Credit and Foreign Bills
Deposits

10 8 ,9 7 5 .0 0
2 1 1 ,6 4 4 ,1 2 8 .7 8

N EW S A N D VIEW S

5 2 2 9 ,0 4 7 ,2 4 6 .7 7

(C ontinued from page 19)

U n ite d S tates G overnm ent obligation s a n d other secu rities ca rried a t $ 4 4 ,81) 8, 7 3 5 .4 1 in the
fo reg o in g statem en t are d e p o site d to secure p u b lic f u n d s a n d f o r other p u rp o ses requ ired by law .

fu tu re for th a t com m unity even a fte r
th e w ar.
W e also enjoyed rem iniscing w ith
E d over his old days in th e C ontinental
B ank a t Lincoln, and th e U nion T ru st
and F irs t N ational B ank of Chicago.
E d had q uite an active p a rt in th e
engineering of th e physical details
w hen th e m erg er took place in 1929.
D avid H. R iem ers, p resid en t of th e
Live Stock N ational, has tw o boys in
th e service. One is C harles R eim ers,
aged 19, w ho is a sophom ore a t th e

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

R ic h a r d C. L il l y , President

,

F r e d e r ic R . B ig e l o w , Chairman Board of Directors
D epa rtm en t of B anks and B ankers

Alden B. L athrop, Vice President
Lee A. Sauer, Assistant Cashier
Rodney F . Sturley, Assistant Cashier
Elm er M . Volkenant, Assistant Cashier
W allace L. Boss, Assistant Cashier

M em b er F ed era l D e p o sit In su ra n c e C orporation

AFFILIATED

WITH

FIRST

BANK

STOCK

CORPORATION

N orthw estern Banker

January 19h3

42

MINNESOTA
N aval R eserve at N o rth w estern U ni­
versity, and Jack R eim ers, 17, w ho is
in his second y ear a t th e N o rth w estern
M ilitary and N aval A cadem y at Lake
Geneva, W isconsin.
W alter J. C um m ings, ch airm an of
th e B oard of th e C ontinental Illinois
N ational B ank & T ru st Company,
loaned th e efficient and ex p ert a d v er­
tisin g counsel of th e ir bank, Ju liu s K.
W aibel, to th e F ed eral R eserve B ank
of Chicago, to help d u rin g th e m onth
of D ecem ber w ith th e big V ictory W ar
Loan. Most every form of adv ertisin g

NEWS

w as used and J u liu s knew how to p re­
p are the copy to get th e b est results.
Gas ratio n in g has not bothered th ree
p ro m inent Chicago bankers, w ho for
a n u m ber of y ears have been w alking
to w ork m ost of th e tim e.
T he th ree w alkers, w ho probably
have traveled m ore m iles on foot to
and from th e ir w ork th a n any o th er
th re e Chicagoans, are E dw ard E agle
Brow n, p resid en t of th e F irs t N a­
tional Bank; H erm an W aldeck, execu­
tive vice presid en t of th e C ontinental
Illinois N ational Bank; and Solom on

First and American National Bank
D uluth, M innesota

Condensed Statem ent of Condition, Decem ber 31, 1942
R esources

\ $15,112,538.54 )
) 20,652,153.84 \

Cash on H an d and D u e F rom B anks
U n ited S tates G overnm ent S ecurities

$35,764,692.38

M unicipal S ecurities

2,113,047.05

O ther B on d s and S ecurities

1,957,157.30

L oan s and D isco u n ts

9,286,341.64

F ederal R eserve B ank Stock

92,250.00

B an k in g H o u se

(

A m erican E x ch a n g e B ank P rop erty

'

240,000.00

A s se sse d V alue f
$680,220.00
\

1.00

In terest E arned B ut N o t C ollected

109,468.99

O verdrafts

143.55
$49,563,101.91

L iabilities
Capital S to ck (C om m on )
Surplus

$2,000,000.00
1,100,000.00

U n divided P rofits

482,847.09

R eserves

314,540.00

T o ta l Capital A sse ts

$ 3,897,387.09

R eserve for In terest, T a x e s and E x p e n ses

121,937.62

D iscou n t N o t Earned

42,521.68

D ep o sits

45,501,255.52
$49,563,101.91

D U L U T H ’S L A R G E S T A N D O L D E S T B A N K
a f f il ia t e d w it h n o r t h w e s t b a n c o r p o r a t io n

M em ber Federal D eposit In su ra n c e C orporation

• ----------------------------------------------------A. Sm ith, p resident of th e N o rth ern

T ru st Company.
Mr. Sm ith lives at 1242 Lake Shore
D rive and w alks to his office a t La
Salle and M onroe S treets each day
d u ring th e w in ter m onths. In th e
sum m er he lives in Lake F orest, so he
uses th e train.
Sam R. Torgeson, cashier of th e
F arm ers & M erchants State B ank of
Lake Mills, has a m ost enviable record
to rep o rt for his ban k in the sale of
W ar Bonds as com pared w ith total
deposits, and in a recent le tte r to th e
N orthw estern B anker , here are th e
b a n k ’s figures:
“W ar Savings Bonds (m atu rity
value) sold to our custom ers since
May 1, 1941, $253,925.
“Deposits Ju n e 30, 1942, w ere $694,800.
“The percentage of such bonds sold
of said deposits, 36.5 per cent.
“In addition to the above sales to
our custom ers, this b ank has a n et
increase of $204,714 of U. S. Securities
since May 1, 1941. T herefore, including
th a t w hich we have bought as a bank,
th e record is as follows:
“W ar Savings Bonds sold to cus­
tom ers since May 1, 1941, $253,925.
“U. S. Securities, net increase, by
b a n k ’s own purchases since May 1,
1941, $204,714.
“T otal W ar Savings Bonds (m atu ­
rity value) sold to custom ers, and n et
increase of U. S. Securities bought
for the b a n k ’s own account is $458,639.
“The percentage of such sales to
custom ers and b a n k ’s own purchases
since May 1, 1941, of deposits on Ju n e
30, 1942, 66 per cent.
“W e do not m ention th is boastfully,
b u t we are pleased th a t we have had
a chance to co n tribute as m uch to th e
w ar effort.”
M arvin E. H old erness, vice p resi­
dent of the F irs t N ational B ank of St.
Louis, w as p resident of the F inancial
A dvertisers A ssociation in 1917, w hich
w as th e second year of th e estab lish ­
m ent of th e organization, and he has
alw ays been active in its affairs ever
since. M arvin’s po p u larity as a b an k er
w as fu rth e r show n w hen he w as
elected p resid en t of the M issouri
B ankers A ssociation in 1933.
S h irley S. Ford, presid en t of th e
N orth w estern B ank & T ru st Company,
M inneapolis, in a recen t letter to us
said, “I alw ays like to read th e N orth ­
w estern

B anker .”

A. G. Sam, presid en t of th e F irs t
N ational B ank in Sioux City, sent out

N orthw estern B anker


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

January 1943

43

•MI NN ESOT A
a v ery in te re stin g holiday g reetin g to
his frien d s en titled, “F o rg ettin g for
th e M om ent E v e ry th in g B ut Our
F rie n d s,” in a p a rt of w hich it said,
“Som ehow a t th is tim e, w hen th e re is
so m uch th a t is d iscordant in hu m an
n atu re, we find it p leasan t to recall
th e m an y little exam ples of goodwill
and cooperation w hich have m arked
o u r relatio n s in the p ast year. We
have w orked to g eth er as friends, help ­
ing each other, keeping our hopes and
our courage high.”
Fred A. Irish , p resid en t of th e F irs t
N ational B ank & T ru s t Com pany of
F argo, N o rth D akota, rem em bered us
again th is y e a r w ith a ja r of N orth
D akota w h ite sw eet clover honey
w hich, w ith th e su g ar ratio n in g on,
w as a v ery acceptable gift.

Com pany for 43 years. H ow ever, P at
sta rte d before the p resen t m erger of
th e various banks w hich m ake up the
p resen t organization, and in fact he
com m enced w ith th e Com m ercial N a­
tional B ank w hich w as later m erged
w ith th e C ontinental and still later
w ith th e Illinois N ational. At the
tim e P at w ent w ith th e Commercial
N ational, Jam es H. E ck els w as p resi­
dent, and w hen he cam e w ith the
C ontinental, George M. R eyn old s w as
th e president.
A nd P at alw ays rem em bers your
nam e.

R oy L. Stone, vice p resident of th e
F irst W isconsin N ational B ank of Mil­
w aukee, is celebrating his 50th an n i­
v ersary w ith th a t in stitution, w hich
in tu rn is th is y ear celebrating its
90th an n iversary. One reason th a t
Roy looks so young and y o u th fu l is
th a t he w as v ery ath letic w hen he w as
a young m an, and in fact w as a pro­
fessional bicycle rid er and w on m any
races.

It is rum ored th a t w ith gasoline
ratio n in g as it is, Roy m ay go back
to his original profession.

STATEMENT OF CONDITION

C olonel W illiam G. E d en s of Chi­

cago, F lo rid a and the U nited States,
is 79 y ears of age, b u t w rote us a
C h ristm as G reeting in his ow n h a n d ­
w ritin g w hich looked like a young
m a n ’s of 25. In his card to us he
said, “A fter fo u r m o n th s in Cleveland
in th e scrap m etal drive for th e
B rotherhood of R ailroad T rainm en, I
am hom e again, re stin g up a b it and
h ugging th e ra d ia to r th is cold w eather,
b u t feeling fine at 79.”

NEWS*

D ecem ber 31, 1942
RESOURCES
Loans a n d Discounts.................................................... ..$ 2,418,261.49
V aults an d Fixtures......................................................

10,000.00

O ther A ssets ................................................................

42,710.18

U. S. G overnm ent Bonds..................$6,577,200.79
O ther Bonds an d Securities............

W. H. P ierce, p resid en t of th e F irs t

N ational B ank of Shelby, N ebraska,
in a le tte r to us, said, “It w as w ith
m uch p leasu re I picked up th e De­
cem ber isue of y o u r good m agazine,
th e N or thw estern B anker , and saw
th e pu b licity you gave th e N ebraska
C om m ittee on G overnm ent C om peti­
tion!
“T hese articles have raised m y
sp irits considerably a fte r th e tactful
‘b ru sh off’ we received in Chicago
from th e A. B. A.”
If you w ould like to get in touch
w ith F red B. C um m ings, form erly of
th e D rovers N ational B ank of Chi­
cago, he is now located at th e U. S.
S ubm arine Base, Box No. 7, N ew L on­
don, Connecticut. In a H oliday G reet­
ing card to us, he said, “In m y travels
over th e floor of the N orth A tlantic, I
have n ot run into any rep resen tatives
of the Northwestern Banker. H ow
com e? I used to m eet som e of you
boys w h erev er I happened to be.”

D rop F re d a line—he w ould be glad
to h e a r from you.

820,400.13

C ash a n d Due from B anks.............. 4,493,783.56

11,891,384.48

TOTAL....................................................................... ..$14,362,356.15
LIABILITIES
C apital ........................................................................... ..$

250,000.00

Surplus ...........................................................................

250,000.00

R eserves an d U ndivided Profits...............................

162,699.93

O ther Liabilities ..........................................................

24,834.75

Deposits ......................................................................... .. 13,674,821.47
$14,362,356.15

★

The

★

★

Stock Yards National Bank
South Saint Paul, Minn.
M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

75, is th e dis­
tin g u ish ed officer in un ifo rm w ho has
been g reetin g custom ers of th e Conti­
n en tal Illinois N ational B ank & T ru st
P atrick

.T.

Size,


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

N orthw estern Banker

January 1943

44

•
R. L. (Dick) D unlap, a ssista n t vice
presid en t at th e Com m erce T ru st
Com pany in K ansas City, w as born
in th a t th riv in g m etropolis and later
moved to San Francisco, th e n came
back to K ansas City 22 y ears ago to
w ork for th e N ational B ank of Com­
merce. In 1920 th a t b an k w as m erged
w ith th e p re se n t Com m erce T ru st
Company. In W orld W ar No. 1, Dick
w as a second lieu ten an t in the F ield
A rtillery and saw m uch action in
France.

MINN ESOT A NEWS
In W ichita, th ere is a big electric
sign w ith the letters F. B. I., b u t it is
not th e h ead q u arters of J. Edgar
H oover and his F ederal B ureau of In ­
v estigation experts, b u t th e hom e of­
fice of the F arm ers & B ankers Life
In su ran ce Company, of w hich H. K.
L in d sley is president.
Charles R. G ossett, presid en t of the

S ecurity N ational B ank of Sioux City,
is a candidate for th e executive coun­
cil from Iow a on th e A m erican Bank-

•
ers A ssociation for 1944. C harlie w as
p resid en t of th e Iow a B ankers Associ­
ation in 1940 and has long been active
in state and n ational banking associ­
ation w ork, and w ould m ake a v ery
excellent rep resen tativ e from th e
H aw keye state.
E arl Bauer, assistan t vice p resid en t
of th e Commerce T ru st Com pany of
K ansas City, in a recent letter to us
said, “I th in k you have a w onderful
m agazine
in
th e
N orthwestern
B anker” .
Carl F redrick sen, presid en t of th e
Live Stock N ational B ank of Sioux
City, sta rts his letters w ith a v ery ap ­
p ro p riate slogan, “One D ay C loser to
V ictory”.

“T h e B a n k at th e Yards'”

Statement of Condition, December 31, 1942
RESOURCES
L oan s and D is c o u n ts .....................................................$ 3,344,644.41
U n ited S ta tes B on d s and N o t e s .............................. 5,100,304.13
M unicipal B on d s ............................................................
346,704.56
O ther B on d s and S e c u r itie s.......................................
280,606.19
F ed eral R eserve B ank S to c k .....................................
16,500.00
In terest E arned, N o t C o lle c te d ................................
33,757.58
Cash on H and and D u e from B a n k s ..................... 8,222,433.82
$17,344,950.69
L IA B IL IT IE S
Capital S tock .................................................................. $
250,000.00
Surplus ..............................................................................
300,000.00
U n d ivid ed P rofits .........................................................
37,849.95
R eserv es for In terest and T a x e s ..............................
34,904.57
R eserve for C o n tin g en cie s.........................................
65,500.00
In terest C ollected , N o t E a r n e d ................................
38,609.53
D e p o sits .............................................................................. 16,618,086.64
$17,344,950.69
O F F IC E R S
C. L. Fredricksen, President
M. A. W ilson, V ice President
W . G. N elson, A ssista n t V ice President
W . C. Schenk, Cashier
H. C. L induski, A ssista n t Cashier
C. L. Adams, A ssista n t Cashier
J. S. H aver, A ssista n t Cashier
Jam es L. Sm ith, Auditor

D IR E C T O R S
C. R. M cK enna, Pres., Johnson B iscu it Co.
B. L. Sifford, Attorney, Sifford & W adden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, President
M. A. W ilson, V ice President
H. C. B osw ell, Secretary-Treasurer,
W estern Contracting Corporation

M em ber Federal D eposit In su ra n c e C orporation

0

LIV ESTO CK
NATIONAL
BANK
S I O U X C I T Y , IOWA
N orthw estern B anker


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

January 19^3

W alter W . H ead, presid en t of th e
G eneral A m erican Life Insu ran ce
Company, is p resid en t of th e St. Louis
U. S. O. council and state chairm an
for M issouri of th a t sam e organization,
and incidentally is doing a v ery fine
job in both positions.
R ay W. Snyder, cashier of th e F irst
St. Josephs Stock Y ards Bank, has a
son, R aym ond Snyder, w ho is a second
lieu ten an t engineer in th e am phibian
regim ent. Before en terin g th e service,
Ray attended th e U niversity of Mis­
souri.
Bruce T ow nsend, executive vice
p resid en t of th e City N ational B ank
in Clinton, w as our host recently w hen
we had th e pleasure of atten d in g th e
R otary Club there. J u s t before th e
m eeting sta rts th e local radio new s
re p o rter reads to th e club th e latest
rep o rts w hich have ju st come in from
all over th e w orld. A v ery clever
idea we think.
H. G. M orrison, cashier of th e P e te r­
son State Bank, has th e honor of being
listed as th ird am ong th e banks of th e
nation as far as th e w ar bond sales
are com pared w ith th e total deposits
of th e institution.
In addition to doing a fine job on
th e sale of bonds, Mr. M orrison’s
dau g h ter w as also one of th e first
girls from th e H aw keye state to be
adm itted to th e WAVES.
B en D uB ois, secretary of th e In ­
dependent B ankers A ssociation, of
Sauk Centre, M innesota, in a recen t
le tte r to us said: “In a recen t issue of
the N o r t h w e st e r n B a n k e r we read
w ith a g reat deal of in terest two
articles w ritte n by N ebraska b an k ers
(T u rn to nex t page, please)

SOUTH
D A K O TA
NEWS
H. N . THOMSON
President
Presho

Bank Changes
Miss Iren e Y lasak, w ho has been
em ployed at th e F a rm e rs & M erchants
B ank of T yndall, has resigned and has
secured a position at th e A m erican
S tate B ank a t Y ankton. Clarence
V lasak w ill tak e h e r place in th e b an k
a t Tyndall.

Yule Party
Forty-five m em bers of th e N o rth ­
w est S ecurity N ational B ank, Sioux
Falls, held th e ir a n n u al C hristm as
p a rty in th e ball room of th e C ataract
Hotel. T h ere w as a d in n er a t 6:30
o’clock, follow ed by gam es and prizes.
G ifts w ere also exchanged.

Business Gain
T he volum e of b an k debits in No­
vem ber, 1942, for M itchell indicates
th a t business activ ity w as 25 p er cent
above th e sam e m o n th th e previous
year, w hile figures last y e a r to N ovem ­
b er show ed a 32 p er cen t rise w hen
com pared w ith th e J a n u a ry th ro u g h
N ovem ber period of 1941. T hese b ank
debit figures, released by th e F ed eral
R eserve B ank of M inneapolis, re p re ­
sen t th e dollar volum e of checks
d raw n by depositors ag ain st th e ir b ank
accounts to p ay for goods, services,
debts, etc.

Former Banker Dies
Jo h n S tew art, fo rm er D allas b anker,
and one of th e early resid en ts in the
R osebud section, passed aw ay at his
hom e in Long Beach, C alifornia, last
m onth. F u n e ra l services w ere held
in th a t city.
Mr. S tew art took an active p a rt in
public affairs and served for a nu m b er
of y ears on th e board of county com ­
m issioners in G regory county.

Directors Meet
The re g u la r m eeting of th e d irectors
of th e B ank of K im ball w as held in
D ecem ber, w ith th e follow ing d irectors
p resent: L. M. L arsen of W essington
Springs, Lloyd Croholm of Ipsw ich,

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Federal Reserve Bank of St. Louis

GEORGE M. STARRING
Secretary-Treasurer
Huron

Mrs. J. H. D rips of G rain Valley, and
R. A. Johnson of Kimball. Ben Jones
of Ipsw ich, one of th e stockholders,
also atten d ed th e m eeting.

Group Meets Informally
M eeting a t L ennox recently, re p re ­
sen tatives of banking in stitu tio n s in
L incoln and neighboring counties w ere
e n tertain ed a t a luncheon supper.
Oscar C. B urke and Sidney Jacobs
w ere host to th e visiting b an k ers and
o th er guests present. The m eeting
w as pu rely an inform al affair and held
in th e n atu re of a get-together m eeting
for th e purpose of discussing some of
the common problem s of th e day.
V isiting ban k ers w ere, from Canton,
E. M. Dean, H ogen Iverson and Merle
Dean; from Chancellor, E d H ofm eister
and H en ry Bossman; J. N. Thom pson,
Centerville; E. A. E ystad, W akonda;
A. E. Deafendorf, Irene; V. B. Clikem an, P ark er. O ther visitors presen t
w ere A ndrew Bogue of P a rk e r and
H arold Bogue of Canton.

In The Service
R ichard B. Stevens, cashier of the
Citizens Bank, V erm illion, has been
g ran ted a leave of absence for the
d u ratio n of the w ar, and w as inducted
into th e arm y at F o rt L eavenw orth,
K ansas.
R onald Campbell, w ho has been the
head teller for th e Citizens B ank for
several years, w as drafted D ecem ber
17th and left for induction into th e
arm y. He began his w ork in the bank
w hile he w as atten d in g th e U niver­
sity of South Dakota, and upon his
g raduation he w as given full tim e
w ork. He has been given a leave of
absence for th e duration.

New Production Records
The w ar caught up w ith South
D akota’s ag ricu ltu ral and ind u strial
developm ent d uring 1942, b u t instead
of arre stin g the upsw ing w hich sta rte d
in th e m iddle ’30s, it generally has re ­
sulted in new production records.
T h at w as th e G reater South D akota

A ssociation’s conclusion after a som e­
w h at detailed analysis of farm and
business conditions w hich revealed:
Cash farm incom e d u ring th e year
w as approxim ately $240,000,000, h igh­
est of any year since 1928 and consid­
erably above the $182,134,000 farm in­
come in 1941, or the $139,869,000 re tu rn
in 1940.
L ivestock and p o ultry production
goals set by th e D epartm ent of A gri­
cultu re w ere equalled or exceeded in
all cases.
A total of 328,047,000 bushels of
grain, feed and seed crops w ere h a r­
vested, as com pared w ith 194,316,000
bushels in 1941 and the 1930-1939 av er­
age of 131,591,000.
B ank debits, rep resen tin g paym ents
for goods and services in 17 larger
state cities w ere 124 p er cent of 1941
for th e first 10 m onths.
Sales a t d ep artm en t stores w ere 115
p er cent of 1941 in the sam e period
despite com m odity shortages in m any
lines and ratio n in g of essential goods.
H igher farm production goals are
set for 1943. The State-Federal Crop
and L ivestock R eporting Service esti­
m ated th a t 1942 m arketings and farm
slau g h ter of cattle in South D akota to ­
taled 764,000 head, com pared w ith 616,000 in 1941. The 1943 goal is 823,000.
F arm ers also are being asked to in ­
crease hog farrow ings, sheep produc­
tion, d airy and po u ltry o u tp u t and
acreages planted to seed, feed and flax
crops.

Fire in Basement
F ire in th e basem ent of th e N o rth ­
w estern Security N ational B ank B uild­
ing of G regory caused dam age to w ir­
ing as w ell as m uch sm oke dam age
th ro u g h o u t the building. P ro m p t ac­
tion by the fire d ep artm en t prevented
a serious loss. The cause of fire w as
given as spontaneous com bustion.

N EW S A N D VIEW S
(C ontinued from page 44)
on PCA com petition. W e are glad in ­
deed th a t you p rin ted these articles.
T he PCAs constitute u n fair com pe­
tition. It is alw ays difficult, of course,
to fight a subsidy as you are in effect
fighting y o u r ow n money.
“You are to be congratulated on the
publicity th a t you have given this
PCA issue”.
Guy W. Cooke, assistan t cashier of
th e F irs t N ational B ank of Chicago,
has a great deal of poetic genius in
his m akeup as well as his expert
know ledge of financial advertising,
and each year he sends out his holiday
greetings in verse w hich he has w ritN orthw estern Banker

January 1943

46

•

SOUTH

ten and w hich alw ays is v ery original
and stim ulating.
C. Ray P h illip s, p resid en t of the
LaSalle N ational B ank of Chicago,
ow ns a n u m b er of Iow a farm s and
says he p refers operatin g his farm s to
playing golf and besides it is m ore
profitable.
L yn n F u ller is p resid en t of both the
Illinois N ational B ank of Quincy and
th e Jackson S tate Savings B ank of
M aquoketa, Iowa.
Both of these in stitu tio n s are show ­
ing excellent progress and th e Illinois
N ational has a capital stock su rp lu s

DAKOTA

and profits of $505,000 and the Jackson S tate Savings B ank has capital
stock su rp lu s and undivided profits
of $191,000.
Jack H. R iley, vice p resid en t of A.
C. A llyn and Co. of Chicago, is one of
th e m ost cordial and delightful m en
th a t we m eet anyw here. H is com pany
has had a v ery fine business record
d u rin g all these years.
P reston E. Reed, executive vice
p resid en t of th e F inancial A dvertisers
A ssociation of Chicago, m ade quite a
record for him self w ith his “Conven­
tion by M ail” and of course w as ably
assisted by his charm ing and beautiful

<0 mtk of Âmertra
N A T IO N A L

CALIFORNIA'S

s a v in g s

A SSO CIATION

ONLY STATEWIDE BANK

Condensed Statem ent of C ondition D ecem ber 31, 1942
RESOURCES
Cash in Vault and in
Federal Reserve Bank
Due from Banks . . .
TOTAL CASH
. . . .
$ 605.041.384.74
Securities of the United States Government and
Federal A g e n c i e s ......................................................
State, County and Municipal B o n d s ...........................
Other Bonds and Securities
......................................
Stock in Federal Reserve B a n k ................................
Loans and D is c o u n ts ......................................................
Accrued Interest and Accounts Receivable . . .
Bank Premises, Furniture, Fixtures and Safe
Deposit V a u l t s ...........................................................
Other Real Estate O w n e d ...........................................
Customers' Liability on Account of Letters of Credit,
Acceptances and Endorsed B i l l s ...........................
Other R e s o u r c e s ...........................................................

S 350,278.009.96
254,763,374.78

1,043,061,518.77
172,982,016.46
45,985,908.52
3,720.000.00
840.469,960.29
7,735,711.04
30,956,355.77
3,974.282.61

LIABILITIES
D EP O SITS:

D e m a n d ...........................
$1,601,668,776.37
Savings and Time . . . 984,471,922.63
Liability for Letters of Credit and a s Acceptor,
Endorser or Maker on Acceptances and
Foreign B i l l s .................................................................
Reserve for Interest Received in Advance . . . .
Reserve for Interest, Taxes, Etc.......................................
Capital:
Common (4,000,000 Shares)
. $ 50,000,000.00
Preferred ( 460,796 Shares)* .
9,215,920.00
S u r p l u s ...........................
62,000,000.00
Undivided P r o f i t s ...........
21,151,214.33
Reserve for War Contingencies, etc.
12,074,463.57
2,834,881.21
Other R e s e r v e s ................
Reserve for Increase of Common
C a p ita l...........................
2,784.080.00
Preferred Stock Retirement Fund .
341,803.65

$2.586,140,699.00

16,812,501.73
4.088.920.20
4.245.148.20

160.402.362.76
$2,771,689,631.89

*Issued a t $50 ($20 C a p ita l— $30 Surplus), A nnu al D ividen d $2. P r e f e r r e d
to ex ten t of a n d retira b le a t issu e p rice a n d a ccru ed d ivid en d s.

This statement includes the figures of the London, England, banking office.
MAIN OFFICES IN TWO RESERVE CITIES OF CALIFORNIA
SAN FRANCISCO
LOS ANGELES
B ranches th ro u g h o u t C a lifo rn ia u n ite d for
stren g th a n d service

N orthw estern B anker

January 19J3

secretary w ith

th e

E nglish

accent,

M iss L u cy David.

“The oldest bank in St. Joe estab­
lished in 1887” is th e A m erican N a­
tional B ank of w hich R. R. C alkins
is president. Mr. Calkins is v ery
pro m in en tly
know n
am ong
th e
ban k ers of th e cen tral w est w here he
has attended conventions for m any
years.
J. M. “P ete” E aston, ad v ertising
m anager of th e N o rth ern T ru st Com­
pany, e n tertain ed us a t luncheon in
th e bank on th e ir one m eatless day of
the w eek b u t th a t d idn’t b o th er us
w hen we looked a t th e item s to choose
from on th e b a n k ’s m enu w hich in ­
cluded the following:
D en ver Sandw ich on Toast
B roiled H alibut Steak, L em on
B u tter
A pple F ritters, Bacon and F ru it
Salad
B aked Macaroni, Tom ato Sauce
Cold Tuna F ish Salad Plate.
W e also had th e pleasure of lu n ch ­
ing w ith F red A. C uscaden’s son-inlaw, Charles R. Perrigo, w ho is a
p a rtn e r of H ornblow er and W eeks
and m arried Gertrude Cuscaden. T hey

have a v ery charm ing d au g h ter nam ed
Jean.

H O W DO Y O U FIG U R E
SER V IC E C H A R G E S ?
H ow ever, I am not in favor of over­
doing th e charge and th u s exploiting
the depositor who, a fter all, fu rn ish es
us w ith our stock in trade. I believe
the bank should decidedly receive
enough to reim burse them for cash
out of pocket for handling all dem and
deposits, w ith a sm all percentage of
profit, and in so doing any of us should
be able to satisfy any of our custom ers
as to the fairness of th e charge.”
W. J. Cline, a ssista n t cashier of the
F irst N ational Bank, M orrill, N e­
braska, rep o rts as follows:

TOTAL CAPITAL FUNDS


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Federal Reserve Bank of St. Louis

•

(C ontinued from page 16)
16,590,257.41
1,172,236.28

T O T A L R E S O U R C E S ......................................$2,771,689,631.89

T O T A L LIA B IL IT IE S

NEWS

A verage F a rm e r No. 1 ............ $
.95
A verage F a rm e r No. 2
1.35
F IV E AND T E N CENT STORE:
57 checks paid at 5c each
$ 2.85
13 tra n s it item s at 3c each
.39
18 deposits at 5c each
.90
M aintenance one m onth ..............
.25
$ 4.39
Ledger balance
.........................$636.00
M inim um collected balance
636.00
15 p er cent r e s e r v e .................... 94.00
N et earnings b a l a n c e ..........$542.00

47

•
One m o n th at 4 p er cent a y e a r
T otal earn in g s ............................
Charged to a c c o u n t......................
JO H N DOE FOOD M ARKET:
11 checks paid a t 5c each
. $
278 tra n s it item s a t 3c each . .
30 deposits a t 5c each ............
M aintenance one m o n th ..............

SOUTH
1.79
1.79
2.60

DAKOTA

N EWS

both, or one or th e other, types of re ­
lief in th e one suit?

Yes. In a recent decision in v o lv in g
a sim ilar situ ation the South Dakota
Suprem e Court held the action w as
.55
one of equitable cognizance and that
8.34
the right to grant fu ll and com plete
1.50
relief, legal and equitable, attached.
.25
The court held fu rth er th at the righ t
to such relief Avas n ot defeated by a
............................................. $ 10.64
denial of the equitable relief sought.

T otal
Ledger b a l a n c e ............................ $832.00
M inim um collected balance
832.00
15 p er cent r e s e r v e ...................... 124.00
N et earn in g balance .............. $708.00
One m onth at 4 p er cent a y e a r
2.35
Total earn in g s
2.35
C harged to account
8.29
E x p lain in g th e above, Mr. Cline says
th a t w h a te v e r th e uncollected funds
w ere on th e day of th e low balance
w ould be deducted from th e ledger
low balance as uncollected funds. He
fu rth e r states th a t “W e have found th e
service charge setup we have w orks
very satisfactorily. W e have used this
system for eight or nine years, and
w ere one of th e first tw o b an k s in
this p a rt of our state to set up service
charges.”
How th e service charges are figured
in th e F arm ers & S avin gs B ank of
M anchester, Iow a, are p resen ted by
W. W. M atthew s, cashier, like this:
A verage F a rm e r No. 1
$ .08
A verage F a rm e r No. 2
.16
Five and Ten Store
........................65
Jo h n Doe Food M a r k e t ...................13.90
Mr. M atthew s says th a t in h andling
out-of-town item s, a five-cent charge is
collected from each depositor w hen
the check is p resen ted for paym ent.
R eporting from th e F arm ers State
Bank of S tickn ey, South D akota, E. G.
Borm an, cashier, says:

We are a sm all co u n try bank, th e
m ajo rity of our cu stom ers being fa rm ­
ers. A t p re se n t we m ake no charges
on accounts th a t c a rry an average b al­
ance of over $50, and th e n m ake a fiat
charge of 50 cents if m ore th a n th re e
checks are w ritte n p er m onth. H ow ­
ever, we feel th a t as our loans go
down, we w ill find it necessary to
m ake som e increases in our service
charges.”

The D ep artm ent of Roads and I r r i­
gation of th e state of N ebraska con­
dem ned certain lands in th a t state for
highw ay purposes. At th e condem na­

th e farm to be polluted by its sew age
disposal plant. The b a n k e r sued to
enjoin th e continuance of th e pollution
and to recover dam ages. In so suing
he asked for equitable relief as to th e
in jun ctio n and legal as to th e dam ages.
As a p rocedural m a tte r could he obtain

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Federal Reserve Bank of St. Louis

tion h earin g evidence as to th e price
paid for o th er lands purchased from
o th er p ro p erty ow ners w as sought to
be introduced as indicative of the value
of th e land being condem ned. No
effort w as m ade to show th a t such
lands w ere sim ilar to or used for the
sam e purposes. Should such evidence
be heard?
No. In a condem nation proceeding
in N ebraska evidence as to the price
paid for other lands purchased from
other property ow ners is not com pe­
ten t on the question of the value of
the land in volved in the suit, especially

STATEMENT OF CONDITION

N O R T H W E S T SECURITY
N A T I O N A L BANK
of Sioux Falls, South Dakota
“South D akota s Leading Bank''
Decem ber 31, 1942
RESOURCES
Cash on Hand, in Federal R eserve Bank, and D ue from Banks
and Bankers .....................................................................................................$6,706,993.05
U. S. Government O b lig a tio n s..................................................................... 8,416,234.85
State and M unicipal B on d s..........................................................................
703,394.27
Other Bonds and S e c u r itie s..........................................................................
445,430.79

Stock in Federal R eserve Bank in M in n e a p o lis............................................................
Overdrafts .........................................................................
Loans and D isco u n ts.................................................................................................................
Banking H ouses, Furniture and F ix tu r e s........................................................................
Includes Banking Houses at Sicux. Falls, Brookinrs, Chamberlain.
Dell Rapids, Gregory. Huron and Madison, all clear of encumbrance.
Interest Earned but not C ollected .......................................................................................
T O T A L ..............................................................................................................................

$16,272,052.96
30,000.00
1,845.21
4,676,788.44
344,516.51
71,500.97
$21,396,704.09

L IA B IL IT IE S
Capital Stock— Common ................................................................................ $ 500,000.00
Surplus ...................................................................................................................
500,000.00
U ndivided Profits and R eserv es...................................................................
192,747.14

R eserve for Interest, T axes, and Other E x p e n ses......................................................
Interest C ollected but N ot E arn ed .....................................................................................
D ep osits ........................................................................

$ 1,192,747.14
53 037.40
10,798.34
20,140,121.21

T O T A L ..............................................................................................................................

$21,395 704.09

L E G A L QUESTION S
(C ontinued from page 20)

•

B R A N C H E S AT

BROOKINGS, CHAM BERLAIN, D ELL RA PID S,
GREGORY, HURON, MADISON
F. H. HOLLISTER

R. M. WATSON

Chairman

P resident

Member Federal Deposit Insurance Corporation

N orthw estern Banker

January 1943

48

•

SOUTH

w here there is no sh ow in g th at such
other lands w ere sim ilar to or used
for the sam e purposes.

American National, Chicago
N et earn in g s of $328,638 for 1942
w ere rep o rted by th e A m erican N a­
tional B ank and T ru st Com pany of
Chicago and re p re se n ts n e t operating
profit a fte r p ay m en t of dividends on
p re fe rred stock, and a fte r provisions
for reserves, taxes and contingencies.
The rep o rted earn in g s are also ex­
clusive of profits realized on securities,
w hich w ere rep o rted as nom inal in
1942. As in previous years, these p ro f­
its w ere credited to securities depreci­
ation reserve.
The 1942 n et earn in g s re p re se n t
$32.86 per share on th e com m on stock,
com pared w ith $34.91 p er sh are in
1941 and $33.20 p er share in 1940.
D ividends of $8.00 p er share of com ­
m on stock, to talin g $80,000, w ere paid
du rin g 1942. In D ecem ber $500,000
had been tra n sfe rre d from undivided
profits to surplus, increasing su rp lu s
from $2,000,000 to $2,500,000. A fu r­
th e r am o u n t of $50,000 w as tra n sfe rre d
du rin g th e y ear to p re fe rred stock
re tire m e n t fund. Capital funds of th e

//

DAKOTA

N EWS

bank, including reserves, totaled $5,745,387 on th e year-end statem ent.
The A m erican N ational B ank en ­
tered the $100,000,000 class in 1942,
both in total deposits and in to tal re ­
sources. D eposits totaled $108,529,532
on D ecem ber 31, com pared w ith $91,383,558 a t th e end of 1941, and $79,089,872 at the end of 1940. D uring the
sam e tw o-year period, to tal resources
of th e bank gained from $84,433,857 to
th e presen t figure of $114,650,366. Most
of th e 1942 deposit gain w as show n in
dem and deposits, th e increase being
from $81,233,041 to $97,345,242. Sav­
ings deposits show ed an increase from
$6,325,421 to $6,850,539.

Victory Loan Drive in Iowa
H e rb ert L. H orton of Des Moines,
in announcing th e p relim in ary figures
for Iow a in th e D ecem ber V ictory
Loan D rive said, “In W orld W ar I,
Iow a w as alw ays am ong th e leaders
in m eeting State Quotas. In th e th ird
and fo u rth L ib erty L oan and th e Vic­
to ry Loan Drive, Iow a su b stan tially
exceeded th e quotas set. Iow ans have
th e patriotism , th e w ealth and the
recognition of need to do th e same
kind of a job in th is w ar financing.”

*

P urchases from D ecem ber 1st to De­
cem ber 26th by Iowa banks w ere $61,368,500, of w hich $36,232,500 w ere for
th e 194’s of 1948 and $25,136,000 w ere
for the %’s of 1943. Of non-bank p u r­
chasers, insurance com panies ac­
counted for about $27,000,000, alm ost
all in th e 2%’s of 1968. Sales of Sav­
ings Bonds and T ax Savings N otes
th ro u g h D ecem ber 31st w ill be in ­
cluded in the final figures to be com­
piled by the T reasu ry D epartm ent for
th e D ecem ber drive.

Now a Director
The board of directors of th e P h ila­
delphia N ational B ank have elected J.
W illiam H ardt, vice presid en t of th e
bank, as a director to fill th e vacancy
caused by Joseph W ayne, J r .’s death.
Mr. H ard t has long been prom i­
nen tly identified w ith banking in P h ila­
delphia, having entered th e em ploy of
th e F ra n k lin N ational B ank in 1908,
rising th ere to be vice p resid en t and
cashier. W hen th e F ra n k lin and F o u rth
S treet N ational B anks w ere m erged,
he continued as a vice president, and
w hen this b ank w as m erged w ith th e
P hiladelphia N ational B ank he again
continued as a vice president.

In Full Production on Defense W o r k 77

At present we are in full production on defense work. When conditions
again become normal we expect to be ready as usual to make special plans
and designs for new and remodeled bank fixtures.
For over 72 years we have furnished special cabinet work and fixtures
for banks, court houses and stores.
Should any special problems arise in connection with your present equip­
ment we will appreciate your writing us and we will do our best to take care
of your needs.

BANK
N orthw estern B anker


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

January 1943

FI XTURE

S PE C I AL I S T S

49

O ffice to Move
The W ashington office of th e A m er­
ican B ankers Association, w hich has
been in the W ashington Building for
th e past five years, w as moved across
th e stre e t to th e N ational Savings and
T ru st Com pany B uilding on D ecem ber
30th.
The new address is 719 15th Street,
N.W. The telephone num ber is E xecu­
tive 1839.

NORTH
DAKOTA
J. O. M ILSTEN
President
Belfield

NEWS

Million Dollar Mark
Footings of th e F a rm e rs S tate B ank
of D ickinson have passed th e m illion
dollar m a rk for th e first tim e in th e
in stitu tio n ’s h istory, Adam A. Lefor,
vice p resid en t and ch airm an of th e
board, announces.
M.
J. R aschko, president, declared
th e re p o rt reflects th e excellent eco­
nom ic conditions of th e te rrito ry due
to tw o y ears of b u m p er crops plus
b ette r p rices for livestock and d airy
products.
D ickinson now has th re e banks, th e
F a rm e rs State, F irs t N ational, and
L ib erty N ational, w ith footings of over
a m illion dollars each, fu rth e r evidence
of th e p ro sp erity of th is area.
Serving w ith M essrs. L efor and
Raschko as officer and d irecto r is A. J.
Becker, cashier. O ther m em bers of th e
b ank staff are F a n n y D. Ziegler, teller;
Peggy F leck and A nna Grim m , book­
keeper.
The b a n k ’s statem en t reveals re ­
sources of $1,011,174.53 as of D ecem ber
9th. T his com pares w ith resources of
$260,448 on A pril 25, 1927, w hen th e
real g ro w th of th e in stitu tio n started.
D eposits of th e b an k aggregate
$912,073.34.

Director-at-Large
H. A. T hom pson, p resid en t of th e
Gate City B uilding and L oan Associa­
tion, of Fargo, recen tly w as notified
from W ashington th a t he had been
elected director-at-large for th e F ed eral
H om e Loan B ank of Des Moines.
Mr. T hom pson w as elected by th e
building and loan associations of N o rth
and South D akota, M innesota, Iowa
and M issouri, th e area th e Des Moines
b an k serves.
He w as elected for tw o years, tak in g
office J a n u a ry 1, 1943.

Banks Handle
Ration Coupons
B ism arck b an k s w ill begin issuing
ratio n coupons on checks and receiving
th em on deposit u n d e r th e n ational
ratio n b an k in g plan, probably early in

C. C. WATTAM
Secretary
Fargo

1943, according to A. P. L enhart,
ch airm an of th e local w ar price and
ratio n in g board.
The plan, w hich has been tried out
in 18 cities and tow ns in New York
state, w ill be extended to em ploy the
services of every com m ercial bank in
th e co u ntry th a t carries checking ac­
counts, he said.
R ationing banking affects only re ta il­
ers, d istrib u to rs and some large users
of rationed goods such as restau ran ts,
th a t buy from w holesale distributors.
It w ill m ake no difference in the ra tio n ­
ing practices of th e individual con­
sum er, L e n h a rt pointed out.
A ccording to th e plan, stores, res­
ta u ra n ts, and o th er channels of ratio n
coupons w ill deposit them w ith the
com m ercial banks, and th en draw
checks on them to tu rn over to th e ir
suppliers. T his plan w ill m ake u n ­
necessary th e presen t cum bersom e
necessity of counting individual cou­
pons several tim es in th e course of
trade.
L e n h a rt said th a t th e banks w ill act
as agents for th e Office of Price A dm in­
istration, and w ill be paid according to
a scale fixed by th e OPA.
M inor changes w ere m ade in the
system now in operation in th e New
York area, he said. T hey w ere w orked
out in cooperation w ith local bankers,
and rep resen teativ es of the A m erican
B ankers A ssociation and others.

Carols by Male Chorus
Follow ing th e custom established
nine y ears ago, th e m ale chorus of th e
City N ational B ank and T ru st Com­
p an y of Chicago sang C hristm as Carols
on th e m ain b anking floor d u rin g th e
four days before C hristm as. Organ
m usic by one of Chicago’s p rom inent
organists, Leo T erry, accom panied the
singing on th e H am m ond electric
organ, and in tersp ersed solo selections
d u rin g th e h o u rs’ program .
The chorus is m ade up of fo rty m em ­
b ers of th e b a n k ’s personnel, and
E lm er Crabbs is th e director.

Manufacturers Trust,
New York
The statem en t of condition of M anu­
factu rers T ru st Com pany as of Decem­
ber 31, 1942, show s deposits of $1,322,420,807, and resources of $1,419,495,474,
w hich com pare w ith $1,112,353,210 and
$1,207,153,258 show n on Septem ber 30,
1942. On D ecem ber 31, 1941, th e re ­
spective figures w ere $984,004,718 and
$1,080,505,867.
Cash and due from banks is listed
at $370,862,493, as against $334,502,993
show n on Septem ber 30th and $365,609,706 show n a year ago. U nited
States governm ent securities stands at
$635,564,410; th ree m onths ago it w as
$449,103,424 and one year ago it was
$340,928,748. Loans, bills purchased
and b a n k e rs’ acceptances is now $300,378,843, w hich com pares w ith $305,236,225 on Septem ber 30th and $260,300,534 on D ecem ber 31st last year.
P referred stock is show n as $8,599,540,
com m on as $32,998,440, and surplus
and undivided profits as $44,898,302.
N et earnings for th e year 1942 will
be rep o rted in detail by th e president
at the an n u al stockholders’ m eeting, to
be held on Ja n u a ry 13, 1943.

Guaranty Trust, New York
The statem en t of condition of th e
G uaranty T ru st Com pany of New York
as of Decem ber 31, 1942, shows to tal
resources and deposits at th e ir highest
points in th e com pany’s history. Total
resources are $2,995,498,622.31, as com­
pared w ith $2,558,587,698.49 a year ago,
and w ith th e previous high total of
$2,813,930,184.78 as of M arch 31, 1941.
Deposits are $2,698,262,179.73, as com­
pared w ith $2,259,895,401.49 a year ago
and w ith th e previous high figure of
$2,520,172,053.60 as of M arch 31, 1941.
The c u rre n t statem en t show s hold­
ings of U nited States governm ent obli­
gations of $1,692,372,867.88, th e highest
figure to date, com paring w ith $1,018,468,210.88 a year ago. The com pany’s
capital and su rp lu s rem ain unchanged
at $90,000,000 and $170,000,000, respec­
tively, and undivided profits total $22,547,059.34, com pared w ith $19,470,856.52
a year ago.
N orthw estern Banker


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Federal Reserve Bank of St. Louis

January 1943

50

■ ■

The
U N I T E D ST A T E S N A T I O N A L B A N K
of Omaha
STATEMENT, DECEMBER 31, 1942

RESOURCES
Cash and D u e from B an k s.................................................................................. $ 1 6 ,7 7 7 ,9 8 4 .6 1
U. S. G overnm ent O b ligation s...................................... $ 2 7 ,1 8 4 ,4 3 5 .3 6
M unicipal Bonds ................................................................
2 ,1 0 0 ,7 2 6 .2 8
Other Bonds ........................................................................
1,7 4 0 ,3 9 4 .9 7
3 1 ,0 2 5 ,5 5 6 .6 1
Loans
Bank
Stock
Other

and D iscounts ..........................................................................................
Premises ......................................................................................................
in Federal Reserve B an k ........................................................................
A s s e t s ..........................................................................................................

5,7 0 4 ,1 0 0 .2 2
7 3 5 ,0 0 0 .0 0
6 6 ,0 0 0 .0 0
1 4 0 ,807.32
$ 5 4 ,4 4 9 ,4 4 8 .7 6

L IA B IL IT IE
D eposits — Commercial and I n d iv id u a l.................. $ 2 5 ,5 9 2 ,3 7 2 .5 6
Banks ..............................................................
1 5 ,5 4 9 ,5 5 6 .3 9
T im e ..............................................................
3,5 5 6 ,2 7 4 .9 5
Public Funds ..............................................
6 ,2 9 8 ,7 4 1 .7 4
W ar Loan Account ..................................
7 4 7 ,2 7 7 .5 0

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

Capital S t o c k ........................................................................
1,1 0 0 ,0 0 0 .0 0
Surplus ..................................................................................
1 ,1 0 0 ,0 0 0 .0 0
U ndivided Profits and R eserves....................................
3 7 5 ,309-13
Other L ia b ilitie s ....................................................................................................

2,57 5 ,3 0 9 -1 3
1 2 9 ,9 1 6 .4 9
$ 5 4 ,4 4 9 ,4 4 8 .7 6

DI RECTORS
LIN N P. C A M P B ELL, P resid ent

B y ro n R eed C om pany, Inc.
EDW IN A. DUFF
EDW ARD FLY N N , E x e c u tive Vice P resident

Chicago, B u rlin g to n & Q uincy R ailroad Co.
RUSSELL J. H O P LEY , P resid ent

N o rth w e stern B ell T elephone Com pany
JOHN W. HUGHES, P resid en t

G uarantee M u tu a l L ife Com pany
GLEN N E. JEN N IN G S, P resid ent

W rig h t & W ilh elm y Com pany
A R TH U R A. LOW M AN , C hairm an o f the Board

N o rth w e stern B ell T elephone Com pany

EDGAR M. M ORSM AN, JR ., A tto rn e y
RO BERT P. MORSMAN
RO Y PAGE, Vice P resident and General M anager

N ebraska P ow er C om pany
H EN R Y W . PIERPO N T, P resident

S tandard Oil C om pany o f N ebraska
A B R A H A M L. REED, C hairm an o f the Board

B vro n R eed C om pany, Inc.
H A R R Y F. REED, P resid en t
L . G. D oup Com pany
ELLSW ORTH MOSER, E x e c u tive Vice P resident
H ERB ERT M. BU SH N ELL, P resident

U N IT E D ^ S T A T E S
MC.
y / a f / v n a f

g/

MEMBER

N orthw estern B anker

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Federal Reserve Bank of St. Louis

January 19b3

f d i c

(Q m

a A a

■:

51

Bank Entertains
O. M. Jeffrey, presid en t of the Plainview State Bank, and his associates
e n tertain ed officers of six neighboring
banks early last m onth, fifteen b an k ­
ers being present.
The function w as held at th e Jo h n ­
son H otel, beginning w ith a seven
o’clock dinner, after w hich a social
and business session continued u n til
11:30.

NEBRASKA

R. F. CLARKE
President
Papilllion

Attends Bankers Meeting
G. P. B aum an, cash ier of th e E lls­
w o rth S tate B ank, atten d ed th e Nobles
C ounty-Fulda B a n k e r s A ssociation
m eeting a t F u ld a last m onth. He w as
accom panied by H. G. K nips and W. E.
M arston, cashier an d a ssista n t cashier
of th e A drian S tate B ank. Mr. B au­
m an is p resid en t of th e association,
and presided over th e m eeting. Mr.
M arston is se c re ta ry -tre a su re r of the
association.

Takes New Position
A n nouncem ent has been m ade th a t
Clarence C astner, a ssista n t cashier of
th e Carson N ational B ank of A uburn,
has accepted a position as cashier of
th e F a rm e rs and M erchants N ational
B ank of A shland.
Mr. C astner has been associated w ith
th e Carson N ational B ank for th e p ast
16 years. He p reviously w as em ployed
in b anks at Coleridge and Madison, Ne­
brask a, beginning his ban k in g career
in 1921.

WM. B. H U G H E S
Secretary
Omaha

and the A m erican State B ank of K ear­
ney.
A successor to his position has not
been definitely decided upon.

Receive Bonus
The annual C hristm as p a rty for em ­
ployes of the F irst N ational B ank of
F a irb u ry w as held a t th e bank re ­
cently. T hey g athered around th e big
C hristm as tree in the bank and ex­
changed gifts. E ach em ploye received
a bonus from th e b ank equivalent to
4 p er cent of th e y e a r’s salary.

Grand Island Party
Young w om en em ployed at th e F irst
N ational B ank of G rand Island held
th e ir - an n u al C hristm as p a rty in the
O riental room at H otel S tratton. D in­
n e r covers w ere laid for the Misses
M artha Scholz, Lois C rabtree, E d ith
L ester, D orothy Green, Delores B erlin,
B ernice Brick, H elen Motes, R uth
Shaw, H attie Reeves, Mrs. Russell
T u rn er, Mrs. N orval Deines and Mrs.
E d ith Schubert.

Call tor Pennies
T he F a rm e rs S tate B ank of Dodge
has asked th e people of th is te rrito ry
to b rin g in th e ir pennies and have
them exchanged for coins of larg er
denom inations.
A shortage of copper, due to th e use
of th is m etal by w ar industries, has
resu lted in th e in ab ility to secure new
pennies by th e bank. All persons are
asked to exchange th e pennies a t th e
b an k for larg er coins, so th e pennies
can be placed back into circulation.

G oes to Columbus
R obert B urm an, for th e p ast six
y ears a ssista n t cashier at th e F o rt
K earney S tate Bank, K earney, has
resigned to accept a sim ilar position
in th e C entral N ational B ank a t
Columbus.
Mr. B urm an had been w ith th e F o rt
K earney b ank 13 years, in th e capacity
of bookkeeper, teller and assista n t
cashier. He w as em ployed p rio r to
th a t in b o th th e F a rm e rs State B ank

Live Stock Entertains
A C hristm as d in n er p a rty and dance
w as given by the Live Stock N ational
B ank of Omaha for th e ir employes.
H onor guests w ere A lvin E. Johnson,
H a rry McCandless, F ra n k W. Hejl,
M arshall C. Dillon, R. H. K roeger and
L ester V. Pulliam , w ho have been w ith
th e b ank m ore th a n twenty-five years.

Enlarges Safe Deposit
Section
The South Omaha Savings B ank has
m ade changes to its building due to
th e increase in its safe deposit box
business. One of th e coupon booths
w as rem oved so th a t a desk could be
placed adjacent to th e lobby w here a
young lady custodian can m eet th e
safe deposit box custom ers.
The bank has enlarged its safe de­
posit box section to about tw ice its
form er size and have these boxes for
re n tal now.

Open House
The F rem o n t N ational B ank held
open house following th e com pletion
of its project of rem odeling and en larg ­
ing its q u arters.
L.
M. K eene becam e a director of
th e b ank in 1882, th e y ear it w as ch ar­
tered. He served as director and vice
presid en t u n til 1884, presid en t u n til
1913, ch airm an of the board of direc­
tors u n til 1925, a total of 43 y ears of
service.
L. P. L arson w as a d irector in 1882,
served th e b an k u n til 1938, a total of
56 years. O ther early-day directors
include H. B. Nicodemus, fa th e r of
C harles B. Nicodemus; M. K. H inm an,
fa th e r of Beach H inm an; L. D. R ich­
ards, fa th e r of F re d R ichards, sr., and
Redfield R ichards and Mrs. B u rt May,
and Joe T. May, fa th e r of Louis E.
May.

Patriotic Poster Display
To b e tte r display p atrio tic posters
and inform ation of value to th e w ar
effort, the C entral N ational Bank,
Columbus, has installed, for th e d u ra­
tion, a tackboard w ith glass doors, on
the outside n o rth w all of the b ank
building.
B ank officials said th e board, w hich
m easures th ree by nine feet, and is
decorated in p atriotic colors, w ill be
used only for publicity m atter on w ar
bonds, ta x savings certificates, Red
Cross activities, ag ricu ltu ral produc­
tion cam paigns, etc., b u t strictly taboo
w ill be b ank advertising, o ther com­
m ercial notices and notes on com­
m u n ity events.

Suspend Saturday
Night Work
McCook banks, th e F irs t N ational
and th e McCook N ational Bank, have
discontinued keeping open on S a tu r­
day nights, it w as announced recently.
T here w ill be no fu rth e r service on
S aturday evenings to serve w orkers
and persons associated w ith th e Mc­
Cook air base.

Cashier Resigns
A fter 24 years of service as assist­
a n t cashier of th e F irs t N ational B ank
N orthw estern Banker


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Federal Reserve Bank of St. Louis

January 19^3

52

• NEBRASKA
of Hooper, C. H. D ahl su b m itted his
resignation in ord er to accept a posi­
tion as cashier in th e Dodge county
tre a s u re r’s office a t F rem ont.

Employed at Bank
Miss N etha McGee has been em ­
ployed to w ork at th e Citizens State
B ank of C learw ater.

Bob Clark Honored
The P apillion Com m ercial C l u b
sponsored a d in n er held in th e P eters
Cafe, h onoring Bob Clarke of P ap il­

( o m

m

N E WS

lion, recently elected p resident of the
State B ankers Association.
Papillion and Sarpy counties feel
highly honored in having one of its
citizens so highly honored and the
d in n er w as an expression of th e ir
appreciation.

40th Anniversary
Decem ber, 1942, m ark ed th e 40th
an n iv e rsary of th e Spalding City Bank.
The b an k w as organized Decem ber
1, 1902, w ith Jo h n H. Sullivan, presi­
dent; T. F. Sullivan, vice president, and
Jam es Fox, cashier. The first direc­

e r c e jn is t ( o m

p a n y

18-1
Established 1865
KANSAS CITY, MISSOURI
Member Federal Reserve System

Statem ent of Condition at Close of Business Decem ber 31, 1942
RESOURCES
Cash and Due from Banks______________________$107,848,251.73
U. S. O bligations, Direct and Fully Guaranteed- 125,956,020.04
State, M unicipal and Federal Land Bank Bonds_

19,959,189.37

Stock of Federal Reserve Bank________________

300,000.00

Other Bonds and Securities______________________

8,021,089.98

Loans and D iscounts_______________________________
Bank Prem ises and Other Real EstateO wned__________________
Customers’ Liability Account Letters

233,804,271.77

28,280,279.35
57,109,332.64
1,987,867.57

of Credit_______________

17,800.00

Accrued Interest R eceivable_________________________________

307,238.06

Overdrafts ___________________________________________________

35,623.03

Other Resources _____________________________________________

1,154.79

Total Resources ________________________________________

$321,543,567.21

LIABILITIES
Deposits _____________________________________________________
Capital

__________________________________________ $6,000,000.00

Surplus

__________________________________________ 4,000,000.00

$307,314,706.22

14,043,304.09

Liability Account Letters of Credit___________________________

17,800.00

Accural Interest, Taxes and Expense----------------------------------------

164,749.45

Other L iabilities _____________________________________________

3,007.45

M em ber Federal D ep o sit Insurance Corporation

N orthw estern B anker
Digitized>for FRASER
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

January 19^3

tors w ere V incent Glasser, T. F. Sulli­
van and Tim Cronin.
Mr. F ox w as cashier from the tim e
the bank w as organized u n til 1908.
He is now presid en t of the F irs t N a­
tional B ank in Albion.
Mr. Sullivan w as presid en t of th e
b ank from the tim e of its organization
in 1902 u n til his death D ecem ber 1,
1932, th e day of the 30th an n iv ersary
of his bank.
Shortly afte r the death of J. H. Sulli­
van, his son, Dr. M. M. Sullivan, be­
came p resid en t of th e b ank and his
daughter, H an n ah Sullivan, becam e
vice president. M. J. Dolce has been
an officer in th e b an k for th e p ast 34
years, Leo Sem per for 20 years, and
M. D. Dolce 12 years.

Pioneer Banker Passes
R avenna and the w hole com m unity
m ourns th e loss of C harles N. D aven­
port, pioneer R avenna m erch an t and
business m an.
He passed aw ay at th e age of 80
years, one m onth and 27 days.
Mr. D avenport had in terested h im ­
self in m any lines of business, p artic u ­
larly banking, and w as p resid en t of
th e State B ank of R avenna, associat­
ing him self in th a t business first w ith
Dr. S. N. B entley, and later w ith others
who, w ith him, ow ned the bank.

Kenneth Sandrock Honored
The F irs t N ational B ank of Falls
City gave a d in n er recently for K en­
neth G. Sandrock, a vice p resid en t of
th e bank, w ho has joined th e Navy.
Those at th e d in n er w ere Mr. and
Mrs. Sandrock, Mr. and Mrs. George
Sandrock, Mr. and Mrs. L. P. W irth,
Mr. and Mrs. E. H. Towle, Mr. and
Mrs. H. B. Bedwell, Mr. and Mrs. E d ­
w in S. Towle, Mr. and Mrs. F. W. Buchholz, Mr. and Mrs. George R. Froelich,
Mr. and Mrs. A. D. Cam eron and Miss­
es E lizabeth McMahon, A nna Sheehan,
E velyn K entopp, E leanor E hlers, E tta
Chapin and Cornelia B ruhn.

Taken By Death

U ndivided Profits _______________________________ 4,043,304.09

Total Liabilities ________________________________________

*

$321,543,567.21

George M. Powell, land ow ner and
cattle feeder residing south of H ardy,
passed aw ay in N ovem ber follow ing a
brief illness.
Mr. Pow ell w as a director of th e
Security N ational B ank of Superior
and vice p resid en t of the F arm ers
State B ank of H ardy. He w as a wellknow n and highly respected resident
of the com m unity, having been an
early settler.

53
dividends to stockholders and did not
reduce salaries.
Mr. Jo hnson is a past president of
the Om aha Cham ber of Commerce
and headed one of O m aha’s m ost suc­
cessful C om m unity Chest cam paigns.

N E of th e prin cip al qualifications
of a b a n k e r still is conservatism ,
according to A rthur L. Coad, p re si­
d ent of th e Pack ers N ational B ank
of Omaha, w ho on D ecem ber 17th com ­
pleted 25 y ears of service w ith th e
in stitu tio n .
H is fath er, th e late J. F. Coad,
helped organize th e P ack ers N ational
m ore th a n 50 y ears ago.
B orn in C heyenne, Wyo., A rth u r
Coad atten d ed Om aha schools, w en t
to C reighton U niv ersity A rts College
th ro u g h his ju n io r year, th e n w as
g rad u ated from th e U n iv ersity of Ne­
b rask a A g ricu ltu ral College.
F o r several years, he m anaged the
fam ily ’s ran ch p ro p erties in New
Mexico and W yom ing, th e n took a
job in 1915 as bookkeeper in th e
H enry, N ebraska, State Bank.
He becam e a vice p resid en t of th a t
bank, th e n sta rte d at th e bottom at
th e P ack ers N ational, w here he has
held ev ery position, serving co n tin u ­
ously except for a few m o n th s a t an
officers’ tra in in g cam p before the
arm istice w as signed in th e first W orld
W ar.
The P ack ers N ational has been a c ­
tive in fostering the livestock in d u s­
try in th e Om aha te rrito ry .
A rth u r Coad is p resid en t of th e
Om aha C learing H ouse A ssociation
and tre a s u re r of th e N ebraska B an k ­
ers A ssociation. He is a m em ber of
the C om m unity Chest Board, ch a ir­
m an of a subcom m ittee of th e W ar
Bond drive.

O

John W. R edelfs, long associated
w ith th e in v estm en t ban k in g business
in Omaha, recen tly joined th e sales
staff of L aw rence B rin k e r & Co.,
Omaha.

H illside, stone m ansion b u ilt m ore
th a n a half cen tu ry ago by th e late
H en ry W. Yates, pioneer Omaha

b anker, at a cost of $40,000, probably
w ill be razed soon. The 25-room home,
w hich still belongs to th e Yates heirs,
w as occupied by a m edical fra te rn ity
u n til th e w ar. H al Y ates, b an k er son
of th e builder, said rem odeling w ould
be expensive even if m aterials w ere
available.
The house is situ ated on tw o and
a half acres of ground.
The Live Stock N ational B ank of
Omaha observed its thirty-fifth a n n i­
v ersary last m onth.
Capital stock
w hen th e bank w as founded w as
founded w as $100,000. In Septem ber,
1942, the b a n k ’s statem en t show ed
capital stock, surplus, profits and re ­
serve of $1,636,166, w ith total resources
of $31,179,494.60.
A lv in E. Johnson, president of the
bank, has been w ith th e in stitu tio n
since its organization. He sta rte d as
a m essenger.
W hen Mr. Johnson first w en t to
w ork for th e bank, he w as 15. Though
qualified (by a sh o rt course) in book­
keeping, sh o rth an d and typing, he
sp ent m ost of the first day w ashing
windows.
As the b ank observed the an n iv e r­
sary, Mr. Johnson w as back at his
desk after a 10-day business trip
th ro u g h th e east.
Recalling his s ta rt at th e bank, Mr.
Johnson said L. M. Lord, head of the
new in stitution, told him he w ould
some day be p resid en t and ow ner. The
y o uth took th a t w ith a g rain of salt.
Today Mr. Johnson is not only th e
b a n k ’s president, b u t the largest in ­
dividual stockholder. M eantim e, he
has held every job in the bank.
The b a n k ’s grow th has paralleled
th a t of Om aha and O m aha’s livestock
in d ustry. D uring th e depression, the
bank, Mr. Johnson said, never found
it necessary to obtain financing
th ro u g h th e RFC. It continued to pay

In a lively m eeting of officials of 14
state banking associations in Chicago
early in December, a fighting m ad Ne­
brask a B an k ers’ A ssociation spokes­
m an criticized the A m erican B an k ers’
A ssociation for alleged failure to get
behind th e N ebraska group in its fight
against com petition from governm ent
lending agencies.
Tension, how ever, w as eased w hen
th e bankers, a t th e final d ay’s session
of the C entral States Conference,
voted to appoint a com m ittee to a t­
tem p t to agree on m ethods in fighting
governm ent com petition.
A high official of the A.B.A. said
th ere is no difference in objectives of
the N ebraska A ssociation and th e N a­
tional A ssociation as to governm ent
subsidized com petition, b u t th e ques­
tion is one of procedure.
W illiam B. H u ghes, v eteran secre­
ta ry of the N ebraska A ssociation, w as
the spokesm an for his group. He
charged th a t attem p ts had been m ade
by ban k ers in o ther states to “squelch”
th e N ebraska group in its protests
against th e activities of production
credit associations and o th er govern­
m ent-sponsored organizations.
Loud pro tests from th e N ebraska
group w ere aired at th e recen t state
convention in Omaha.
The production credit associations
are farm er co-operatives organized
eight y ears ago w ith $120,000,000 of
governm ent m oney to m ake loans to
farm er m em bers.
A m erican soldiers fighting in A frica
or the South Seas or in Iceland like
to look at a picture of a p re tty girl.
Yet w hen th ey get really lonesom e—
and th ey do—th ey w an t to sit dow n
and ta lk —about hom e—to some nice
gray-haired wom an.
T h a t’s the w ay Leon C. Murdock,
Chicago in v estm en t b an k er tu rn e d
Red Cross personnel officer for th e
duration, has it sized up. He w as in
Om aha recently conferring w ith Red
Cross officials and interview ing appli­
cants to be Red Cross rep resen tativ es
w ith troops overseas.
Charles D. Saunders, vice president
of th e F irs t N ational B ank of Omaha
on leave for th e du ratio n as chairm an
of Om aha R ation Board No. 1, has
one of th e biggest jobs in Om aha in
connection w ith th e w ar effort. It
was m ade still busier recently w ith
the beginning of fuel oil and gasoline
rationing.

N orthw estern Banker

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

January 19^3

54

•
Pooling of cars has helped g reatly
in g ettin g people to w ork in W ashing­
ton u n d er gas rationing. Major W. B.
Millard, Jr., of th e arm y signal corps,
on leave from his duties as vice p resi­
dent of th e Om aha N ational Bank,
said on a recen t visit to Omaha.
He is reigning king of Ak-Sar-Ben,
no successor having been crow ned
since he w as elevated to th e th ro n e a t
th e 1941 coronation ball. No corona­
tion w as held th is fall, because of th e
w ar. A p a rty for service m en w as
substitu ted . M illard has been sta ­
tioned a t th e capitol since May.

NEBRASKA

NEWS

In Omaha, he visited his aunt, Miss
Jessie M illard.
Seventy-five executives of Omaha
banks, in v estm en t houses and build­
ing and loan associations launched this
reg io n ’s p a rt in th e nine billion dollar
V ictory L oan F u n d drive at a b re a k ­
fast a t th e Om aha A thletic Club in
Decem ber. R aym ond E. M cGrath, a t­
torney, is regional m anager of the
cam paign. F rank J. Bender, ch air­
m an of th e Om aha V ictory L oan F u n d
Com m ittee, presided.
On the first day of th e Om aha drive,

AMERICAN NATIONAL BANK
AND TRUST COMPANY
OF CHICAGO
L A S A L L E STR EET J F

AU m b e r F e d e r a l D e p o s it

AT W A S H IN G T O N
In s u r a n c e C o rp o ra tio n

STATEMENT OF CONDITION
AT TIIE CLOSE OF BUSINESS DECEMBER Ul. 1012

RESOURCES
C a sh a n d d u e fro m b a n k s ..............................................$ 3 4 ,3 3 2 ,1 3 1 .5 3
U n ite d S ta t e s G o v e r n m e n t o b lig a tio n s — d irect
a n d fu lly g u a r a n t e e d ....................................................
M u n ic ip a l an d o th e r m a r k e ta b le se c u r itie s

.

4 0 ,9 5 0 ,8 7 1 .3 4

.

1 6 ,1 4 7 ,2 8 5 .2 6

L o a n s a n d d i s c o u n t s ...........................................................

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

F e d e r a l R e s e r v e B a n k s t o c k ........................................

1 2 3 ,0 0 0 .0 0

C u s to m e r s ’ lia b ilit y on a c c e p t a n c e s ...........................

4 8 ,8 0 9 .6 0

A ccr u e d in te r e s t r e c e i v a b l e ........................................

2 4 3 ,2 2 1 .9 5

R e a l e s t a t e o w n e d ...........................................................

1.00

O th e r a s s e t s ........................................................................

4 8 ,3 7 1 .5 1
$ 1 1 4 ,6 5 0 ,3 6 5 .5 1

C l A It I l i l T I E S
C a p ita l s to c k — p r e f e r r e d ..............................................$

6 0 0 .0 0 0 .0 0

C a p ita l s to c k — c o m m o n ..............................................

1 ,0 0 0 ,0 0 0 .0 0

S u r p l u s .....................................................................................

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

U n d iv id e d p r o f i t s ...........................................................

4 6 3 ,7 8 0 .4 8

P referred s to c k r e tir e m e n t f u n d .................................

2 5 5 ,0 0 0 .0 0

.

9 2 6 ,6 0 6 .9 9

U n e a r n e d d i s c o u n t ...........................................................

R e s e r v e for t a x e s , in te r e s t, c o n tin g e n c ie s , e tc .

3 2 6 ,6 3 6 .5 6

L ia b ility o n a c c e p t a n c e s ..............................................

4 8 ,8 0 9 .6 0

D e p o s it s :
D e m a n d ............................................. $ 9 7 ,3 4 5 ,2 4 2 .3 9
U n ite d S ta t e s G o v e r n m e n t .
O th e r p u b lic fu n d s .

.

.

.

.

.

$2,018,500 in sales of tre a su ry bonds
and tax certificates w as reported.
P rim e sale w as a $1,000,000 order for
Series C tax certificates from th e
N o rth ern N atu ral Gas Company. Carl
F alk of Buffett & Co., placed th e
order, and also asked an additional
$40,000 w o rth of certificates for th e
A rgus N atu ral Gas Company, a com­
panion firm of N o rth ern N atu ral Gas.
B ender announced ap p ointm ent of
the following Omaha in vestm ent m en
to serve as an advisory board. Man­
n ing H andler, D onald P ettis, M urray
Cram m er, P. P. Purdham , L. M. MeCague, H arry Green w ay, Carl F alk ,
H arry Sm ith, John M. D ouglas.
The F ederal Land Bank of Omaha

has sold about 100 ty p e w rite rs—m ore
th a n one-fourth of its to tal supply—to
th e arm y engineers and w ar produc­
tion board. A bout tw o-thirds of th e
m achines w en t to th e engineers.
Ford E. H ovey, p resid en t of th e
Occidental B uilding and Loan Asso­
ciation of Omaha, w as elected N e­
b ra sk a ’s national councilm an for th e
U nited States Savings and Loan
League at a recen t m eeting in Omaha.
M. M. (“M ike” ) M eyers, Omaha in ­
vestm en t banker, has been nam ed ex­
ecutive officer of th e N ebraska w ing
of th e civil air patrol. P reviously he
w as executive officer of squadron No.
1 at Omaha. H e w as chairm an of th e
first airp o rt bond drive com m ittee a t
Omaha, is a p ast presid en t of both th e
Omaha Ju n io r C ham ber of Commerce
and th e N ebraska Ju n io r C ham ber of
Commerce.

E very C hristm as, L. E. Sw an son of
Omaha has been sending a frien d a
sw eater. T his year, for a change, he
decided to send th e friend a collection
of Indian head pennies.
F o r several days, he trad ed friends
out of Indian heads, b u t it w as slow
w ork and C hristm as w as creeping
closer. T hen he had an idea. He ad ­
vertised for In dian heads in a new s­
paper and th e pennies started to roll
in. He bought m ore th a n tw o th o u ­
sand pennies, b u t still lacked pennies
for certain years. B ut he w as confident
of g etting those, too.

4 ,2 7 4 ,9 2 0 .7 5
2 8 ,8 2 9 .4 7

S a v i n g s .......................................
O th e r t im e d e p o s its

•

BANKS

6 ,8 5 0 ,5 3 9 .2 7
.

3 0 ,0 0 0 .0 0

Bought and Sold

Confidentially and with becoming dignity

108,529,531.88
$114,650,365.51

BANK EM P LO Y EES P LA C ED .
37 Y e a rs S a tis fa c to ry S ervice.

THE CHARLES E. WALTERS CO.
OM AHA. N EB R A S K A

N orthw estern B anker


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

January 19b3

New Bank Employe
Mrs. Mazie D uncan sta rte d w ork re ­
cently as bookkeeper at th e Citizens
S tate Bank, H addam .

New Employe
Adolph K ucera has started w orking
for th e B ank of Mead. He w ill replace
E m erson E rw ay, w ho has accepted a
position to th e N ebraska O rdnance
P lan t as a radio technician.

Banking Group Elects

p resid en t of th e N ation­
al B ank of Commerce, last
m o n th w as receiving congratu latio n s
from his m any friends on his 84th
b irth d a y an n iv ersary . Mr. W eil also
received m any floral tokens.
T he fact th a t he is 84 y ears old in
no w ay caused Mr. W eil to change his
routine. He w as a t his desk in th e
b an k w h en it opened, as he has been
for m an y years, and rem ained th e re
th ro u g h o u t th e day.
Mr. W eil has been p resid en t of th e
b an k ev er since it w as founded in 1902.

M

W E I Li,

E. M. F orsyth , w ho recen tly com ­
pleted a tw o-year te rm on th e board
of th e F ed eral H om e L oan B ank of
Topeka, has received w ord of his reelection as director. T he T opeka bank,
one of tw elve regional in stitu tio n s in
th e U nited States, serves th e states of
K ansas, N ebraska, O klahom a and Colo­
rado. F o rsy th is p resid en t of th e F irs t
F ed eral Savings & L oan A ssociation,
hav in g been w ith th e firm for m ore
th a n 20 years. He h as also been active
in natio n al federal loan w ork.
M iss D ella Mae L au ten sch lager has

been em ployed by th e N ational B ank
of Com m erce in Lincoln. She h ad
w an ted to w o rk in a b an k and th is
o p p o rtu n ity w as offered to h e r a t th e
rig h t tim e.
A c h a rte red savings b an k in N e­
b ra sk a m ay not, u n d er its original
ch a rte r, c a rry on a checking account
business, A tto rn ey G eneral W alter
Jo h n so n held in an opinion to State
B an k in g D epartm ent D irector W ade
R. M artin.

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


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

“If a savings b ank w ere p erm itted to
extend to its custom ers the checking
account service th ere w ould be little
difference betw een th e savings bank
and the com m ercial b an k ,” Johnson
ruled.
H ow ever, in Omaha, w here the ques­
tion arose, it is necessary for a com­
m ercial b ank to have capital stru c tu re
of $200,000 before it is chartered, w hile
a savings b ank is req u ired to have
only $75,000 capital, Jo hnson con­
cluded.
R ay P. A nderson enlisted in th e
N avy a t K ansas City, and is now a
storekeeper, th ird class, p resen tly lo­
cated at th e U. S. N aval T rain in g Sta­
tion in San Diego, California. He w as
fo rm erly em ployed a t th e F irs t N a­
tional Bank. H is w ife w ill rem ain in
Lincoln.

W ayne Decker, teller a t th e B eatrice
N ational Bank, w as elected secretarytre a su re r of th e S outheast N ebraska
clearing house association at th e an ­
nual fall m eeting.
O ther new officers are H. R. Killinger, H ebron, president, and F re d H.
B runing, B runing, vice president. The
program included addresses by Prof.
D ana Cole of th e U niversity of Ne­
braska, and by F. S. A ldrich, vice pres­
ident of th e C ontinental N ational B ank
of Lincoln. Included in discussions
w as th e association’s w ork w ith 4-H
Club m em bers, p a rt of w hich is th e
giving of subscriptions to th e “4-H
Clubs N ew s” to all 4-H Club leaders in
th e association’s territo ry .
A ttending th e m eeting from B eat­
rice, besides Decker, w ere R ay G rupe
and E d A ustin, also of th e B eatrice
N ational Bank, and L oren Hobbs and
H om er Hobbs of th e B eatrice State
Bank. Iv an Hedge, Filley banker, also
attended.

W e invite you to use the correspondent
facilities of this b an k —an d to take
a d v a n ta g e of our strategic location
here in Lincoln.
★

★

★

DEPOSITS .......................... $20,845,724.89
(As of D ecem ber 31, 1942)

C ontinental R ational
B

a iÎ K

LINCOLN
Member Federal Deposit Insurance Corporation

N orthw estern Banker

January 1943

56

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Commemorating...
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3 5 Y ears of S e r v ic e *
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Right now we're in there pitching, just as you are—doing everything we can
to help bring Victory closer. Through loans to livestock feeders, through loans
to businesses having war contracts, through the promotion of War Bonds and
Stamps and in many other ways, the Live Stock National Bank is fulfilling its
wartime responsibilities to the people of the nation it serves.

I

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STATEMENT OF CONDITION, DECEMBER 31, 1942
EIABU ATIES

188,095.57
115,274.80
37,500.00
1.00
None

472,055.49

C apital Stock (Common).......................... $ 500,000.00
750,000.00
Surplus (Earned) .......................................
231,642.39
U ndivided Profits .....................................
180,351.17
R eserved for Taxes, Interest, etc...........
8,830.54
U nearned Discount ................................
7,500.00
Dividend P ay ab le January 2, 1943....
Deposits:
Banks (Net) ................$18,681,210.54
36,134,602.76
O ther Deposits ....... 17,453,392.22
$37,812,926.86

$37,812,926.86

OFFICERS AND DIRECTORS
H O W A R D O. W IL SO N
V ice P resid en t

H . C. K A R P F
V ice P resid en t

A L V IN E. JO H N S O N
P resid en t

R. H . K R O E G E R
V ice P resid en t

W . P . A D K IN S
C hairm an

PA U L H A N SEN
C ashier

L. V. P U L L IA M
A sst. C ashier

C. G. P E A R S O N
A sst. C ashier

H. H. ECHTERM EYER
A sst. C ashier

H . B . B E R G Q U IS T
C oal and G rain

L. S. B U R K
C hicago

JA S. J. F IT Z G E R A L D
Secretary C om m ercial
Sav. and L oan A ssn.

T . E. G L E D H IL L
F arm er

LEO T. M U R P H Y
M anager A llie d M ills, Inc.

H E R M A N K . SC H A F E R
P resid en t M aney M illin g Co.

§

f

Today, this bank is still faithfully serving many of its original patrons, as well
as a steadily growing list of new friends who have found there is no substitute
for the Live Stock National's friendly service.

RESOURCES

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§

Thirty-five eventful years have passed since the December day in 1907 when
the Live Stock National Bank, with a capital of $100,000, first opened its doors
to serve the people of this community.

Loans an d D iscounts.................................$12
Bonds an d O ther Securities....................
Stock in F ed eral R eserve Bank..............
Banking House an d Fixtures..................
O ther R eal Estate.......................................
U. S. G overnm ent
Securities .................$12,194,610.60
C ash, Sight Exch. an d
Due from F ed eral Re­
serve Bank ............... 13,277,444.89
25

II*

C A R L A . SW A N S O N
P resid en t Jerp e C om m issio n
and C old Storage Co.

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LIVE STOCK NATIONAL BANK f
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Member Federal Deposit Insurance Corporation

N orthw estern B anker

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

January 1943

§

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57
bers nam ed w ere J. D. Lowe, an a tto r­
ney, and L. H. K leinpeter, d ep artm en t
store owner.

Banker-Soldier Dies

B . A. GRONSTAL
President

FR A N K W ARNER
Secretary

Council Bluffs

Des Moines

Bank Deposits Up
A t W aterloo
B ank activ ity and resources in
W aterloo continued an u p w ard tre n d
d u rin g 1942, as debits rose 23 p er cent
an d deposits 25 p er cent d u rin g the
first 11 m onths over a sim ilar period
in 1941.
D ebits for th e N ational B ank of
W aterloo and th e W aterloo Savings
B ank, on th e basis of clearing house
re p o rts up to D ecem ber 1, h ad by th a t
tim e already passed th e 12-month m ark
of 1941, an d stood a t $303,776,000. It
w as an increase of approxim ately
$51,000,000 over th e first 11 m onths of
th e p revious year, and w as $19,000,000
g re a te r th a n th e total for th e w hole of
1941.
The continued u p tu rn m ean t th a t
debits h ad increased in tw o y ears by
30 p er cent.
D eposits a t th e tw o b anks attain ed
th e to tal of $20,063,430, or $3,978,661
m ore th a n for th e first 11 m onths of
1941.
Of these, $10,866,803 w as on deposit
a t th e N ational B ank of W aterloo, and
$9,196,627 a t th e W aterloo Savings
B ank. F ig u res for th e tw o b anks in
1941 show ed N ational B ank deposits
a t $8,738,051, and W aterloo Savings
B ank deposits a t $7,295,141.

Bank Employes Entertained
Mr. and Mrs. M. E. T oothacre e n te r­
tain ed em ployes of th e F arm e rs &
M erchants B ank of B u rlin g to n re ­
cently.
Those p re se n t w ere Mr. and Mrs. M.
E. T oothacre, H a rry E Simon, Mr. and

Mrs. C. H. W alsh, Mr. and Mrs. J.
H en ry Rudy, Mr. and Mrs. Jack Boden,
Mr. and Mrs. H erb ert W ittkam p, Mrs.
K ath erin e Nixon, Misses Myla Keehn,
M argaret V andervert, Grace Orr, E dna
Orr, Nellie Fischer, W anda Shew,
Tw ila Reeb, R uth O berm an and Sylvia
Pfieff.

Farm Loan Manager
Due to th e resignation of C. J. Howe,
M ax W. B urrell has been appointed
m anager of the Ames, Iowa, farm loan
office of the C onnecticut G eneral Life
In su ran ce Company. T his office serves
com pany farm investm ents in Iowa,
M issouri, and M innesota. It is active
in negotiating farm loans, m any of
w hich are handled th ro u g h banks in
these states.
Mr. B urrell has been associated w ith
th e Connecticut G eneral Life in Iowa
for th e p ast ten years.

Dies in Boyden
F red De Jong, for th e past seven
y ears an em ploye of th e F arm ers Sav­
ings B ank of Boyden, passed aw ay in
th a t city recently at th e age of 26
years. He had been ill for th e p ast few
m onths, and his death w as caused by
a h e a rt ailm ent.

New Directors
At th e recent an n u al m eeting of the
E xchange S tate Bank, of W esley, tw o
new directors w ere elected to th e
board, and A ndrew Gollner, a board
m em ber for th e p ast eighteen years,
w as advanced to th e office of vice
president. The tw o new board m em ­

Inform ation comes from J. B. W as­
son, cashier of the F irst S tate Bank,
Lynnville, th a t Pfc. DeVere Stanley,
a form er cashier of th e bank, died at
Lubbock Field, Texas, w here he had
been stationed. Mr. Stanley entered
the em ploy of th e b ank in 1934 as
a ssistan t cashier, and w as nam ed
cashier a year ago. H is fa th e r is H. L.
Stanley, vice presid en t of the F irst
S tate Bank.

Bring More Pennies
H ere is an in terestin g item from
Claus Loof, p resident of th e Peoples
T ru st & Savings B ank a t G rand Ju n c ­
tion:
“I note the item in yo u r D ecem ber
issue in w hich you state th a t some
Cedar Rapids b ank rep orted th a t m any
pennies w ere being tu rn e d in and th a t
one p articu lar p a rty b ro u g h t in about
$115 w o rth in pennies and o th er sm all
coins exchanging them for currency.
“I am happy to rep o rt th a t a few
days ago we had a local p a rty tu rn in
to us $110 in pennies of w hich $70 w ere
in Indian head pennies, buying a W ar
Bond w ith $75 of it, and tak in g c u r­
rency for th e balance.”

Observes 12th Anniversary
O bserving the tw elfth a n n iv ersary
of U nion-W hitten State Savings B ank
officers and directors enjoyed a d in n er
and program recently in Union.
W ith H. E. Long, vice president,
presiding, an address of welcome w as
given by C. L. Long, cashier; vocal
solos by F. W. B erninghausen, accom p­
anied by Mrs. K. J. Lyon, and by Mrs.
Lyon, accom panied by Mrs. E. H.
B iersborn. A histo ry of th e b ank w as
presented by K. J. Lyon, assistan t
cashier, and a talk on ag ricu ltu re w as
given by J. R. H ow ard of Clemmons,
form er p resid en t of th e A m erican
F arm B ureau Federation. The p ro ­
gram closed w ith tw o piano selections
by W. K. Bram w ell, ch airm an of th e
board of directors.

S carborough ^ C ompany
^yytÁA4Á£t4tC£y
First National Bank Building, Chicago


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

Horace A. Smith, Iowa Representative
Des Moines, Iowa

N orthw estern Banker

January 1943

58

•
New Director
A. C. G ingerich, p resid en t of th e
M aplecrest tu rk e y farm s a t W ellm an,
has been elected a d irecto r of th e F irs t
Capital N ational B ank of Iow a City,
to succeed th e late Lee Nagle, F ra n k
D. W illiam s, president, announced re ­
cently.
T his is th e first change in th e direc­
to rate of th e b ank since its organiza­
tion in 1932.

Home Financing Declines
T here has been a g re a t increase in
th e am o u n t of advance p ay m en ts by
hom e ow ners on th e ir m ortgage indebt­

IOWA

NEWS

•

edness, it w as rep orted by R. J. R ich­
ardson, presid en t of the F ed eral Home
L oan B ank of Des Moines, at its q u ar­
te rly m eeting of directors.
He also rep o rted th ere has been a
su b stan tial decline in hom e financing
volum e due to th e v irtu a l elim ination
of all new hom e construction due to a
shortage in critical m aterials.
As a resu lt of th e sh rin k in g loan
dem and and excess paym ents on out­
stan d in g loans, savings and loan associ­
ations have m ore th a n trebled th e ir
gov ern m ent bond holdings in th e last
five m onths, R ichardson reported.
In addition, association m em bers
have sold w ar bonds and stam ps to tal­

THE N O R T H E R N
TR U ST C O M PA N Y
• CHICAGO

•

Statement o f Condition , December 3b 1942
RESOURCES
L o a n s a n d D is c o u n t s ............................................................ $ 46,621,685.74
U . S . G o v e r n m e n t S e c u r it ie s ............................................ 216,219,041.27
(I n c lu d in g $32,000,000.00 p le d g e d t o s e c u r e d e p o s i t s o f U. S .
G o v e r n m e n t a n d o t h e r p u b lic m o n ie s , a s r e q u ir e d b y l a w )

O th e r B o n d s a n d S e c u r it ie s ..............................................

96,100,762.66

(I n c lu d in g $500,000.00 d e p o s i t e d w i t h S t a t e A u t h o r i t i e s
u n d e r T r u s t A c t)

F ed era l R eserv e B a n k S t o c k . ...........................................

270,000.00

B 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 ...................................................................

228,211.62

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

497,590.00

C a sh a n d D u e fr o m B a n k s ................................................. 124,843,678.35
T O T A L ............................................................................................$486,180,969.64
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 .....................................................................

5,700,190.27

R eserve fo r T a x es, I n t e r e s t , e t c .......................................

11,743,824.24

ing m ore th a n one-quarter billion
dollars.
The bank declared a stockholder
dividend of $64,097.

North Iowa Bankers Meet
E.
L. W alleser, vice p resid en t of th e
F irs t Security B ank of C harles City,
attended a m eeting of ban k ers from
eight n o rth Iowa counties at M ason
City last m onth. T he session w as
called for the purpose of prom oting th e
Iow a R egional V ictory F u n d com m it­
te e ’s drive to increase inv estm en ts in
U. S. bonds in th is section of th e state,
the D ecem ber quota being nine billion
dollars.
O thers from Floyd county a t th e
m eeting were: H. C. B atty, vice p resi­
dent of th e F irs t S tate B ank at Rock­
ford; E. C. Moody, president, and J. A.
Cutler, cashier, of th e F irs t State b an k
at N ora Springs.

Assistant Regional Manager
H erb ert L. H orton, chairm an of th e
Iow a Regional V ictory F u n d com m it­
tee, has announced the ap p ointm ent of
Jo h n H. (Mike) R uhl as assistan t re ­
gional m anager.
Mr. R uhl has been vice p resid en t of
Quail and Company, in v estm en t b an k ­
ers of D avenport, and has been g ran ted
an indefinite leave of absence and w ill
devote his en tire tim e to cooperating
w ith ban k ers in eastern and n o rth ­
eastern Iowa on the prom otion of th e
various governm ent issues and tax
savings notes.
T his appointm ent w as m ade w ith
the approval of th e S ecretary of the
T reasury, H en ry M orgenthau, Jr.

Annual Bank Meeting
S hareholders of th e City N ational
Bank, Shenandoah, w ill hold th e ir a n ­
nual m eeting early in Ja n u a ry a t th e
bank. A board of directors w ill be
elected. Revised articles of association
w ill be considered and such o th er
business as m ay come before th e
m eeting.
H. E. Ross is p resid en t of th e bank.

D iv id e n d P a y a b le J a n u a r y 2, 1 9 4 3 ................................

135,000.00

New Bank

L e tte r s o f C r ed 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 ..

266,747.85

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

87,624.88

Z earing now has a hom e ow ned in ­
stitution, opened th e first of th e year.
The acting board is, president, W. H.
B randt; vice president, R. J. Pulley;
directors, W. H. Brow n, of Zearing,
H. L. Sw anson of G arden City and C.
F. Long of Union.
AV. H. B row n w ill be cashier, Mrs.
Verda H olveck, assisting cashier, Miss
N oren E. P ulley th e teller. T he b ank

D e p o s it s :
D e m a n d ................................................. $379,501,268.57
T i m e .......................................................

79,746,313.83

459,247,582.40

T O T A L ............................................................................................. $486,180,969.64
Member Federal Deposit Insurance Corporation

N orthw estern B anker


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

January 19^3

• et CO’tUS

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C o m m e r c i a l activity took a long step forward when the Greeks
replaced shapeless metal with molded coins. Likewise, modern business
has been greatly aided through the many improvements developed by
banking.
Since 19 17, progressive banking practice has built the Bankers Trust
Company into one of Iowa’s large banks, particularly qualified to handle
the Des Moines business of other Iowa banks.


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Federal Reserve Bank of St. Louis

BANKERS TRUST
COMPANY ri.;i DES MOINES

FQPAICTORY

60
will have a capital and su rp lu s of
$41,250. The nam e w ill be th e “TriCounty State B ank.”

SECURITY NATIONAL BANK

C lay County Bankers Elect

SIOUX CITY, IOW A

The Clay county ban k ers association
w as reorganized and revitalized at a
m eeting in Spencer last m onth. Several
problem s affecting th e banking indus­
try w ere discussed b u t no m ajor def­
inite action w as taken.
New officers w ere chosen a t th e
m eeting as follows:
A. E. A nderson of Spencer, president;
H. G. M orrison of P eterson, vice presi­
dent; and R. G. Lexvold of Spencer,
secretary-treasurer.

Statement of Condition December 31, 1942
ASSETS
C ash on H and a n d on Deposit with Banks .
.
$ 5,916,035.01
United States G overnm ent Securities . . . .
4,364,692.21
Bonds an d S e c u r i t i e s ............................
894,971.61
Loans a n d D i s c o u n t s ....................................................
2,816,635.59
Security Bank Building, Vault an d Fixtures .
.
160,000.00
F ederal R eserve Bank S t o c k .....................................
15,000.00
O ther A s s e t s ............................................
1,501.16

Why Tax Savings Notes
Really Help

$14,168,835.58
LIABILITIES
C a p i t a l .......................................................................... $
S u r p l u s ...................................................................
U ndivided Profits an d R eserves
. . . .
D e p o s i t s ...................................................................

The Iowa V ictory F u n d Com m ittee,
according to regional m anager, Jam es
A. Cummins, has on several occasions
been asked, “W hy b o th er w ith th e
sale of tax notes? It will be necessary
to refinance them in a m a tte r of m onths
and th e earnings is relatively small.
To the tax p ay er the notes afford an
op p o rtu n ity to anticipate fu tu re tax
paym ents w hile cash is available, and
th ey provide an in terest earn in g in th e
process. The tax notes do not m atu re
for th ree years. M any holders m ay
find th is coming year th a t cash is

250,000.00
250,000.00
35,993.31
13,632,842.27
$14,168,835.58

Member F ederal Deposit Insurance Corporation

Opened for Business October 15, 1934
Statement of the

IOWA STATE BANK & TRUST COMPANY
Iowa City, Iowa

DECEM BER 31, 1942
R E SO U R C E S
Cash and Due from B a n k s.........................................
U. S. B o n d s........................................................................
Other Bonds and S e c u r itie s................. .....................

$2,112,034.17
998,728.21
113,589.71

CASH OR IT S E Q U IV A L E N T ............................................................................................$3,224,352.09
Loans and D isc o u n ts.......................................................................................................... 1,420,368.18
Overdrafts ......................................................
81.18
Banking H ouse ...................................................................
53,300.00
18,000.00
Furniture and F ix tu r e s........... ........................................................................................
$4,716; 101.45
L IA B IL IT IE S
Capital Stock . . . ....................................... ..............................
Surplus and U ndivided P rofits............................................
D eposits .......................................................................................

$ 150,000.00
99,715.86
4,466,385.59

-

-

$4,716,101.45

F R A N K C. W E L C H
O F FIC E R S
B e n S. S u m m e e w il l , P r e s id e n t
D r . E. M. Mac E w e n , V ic e P r e s id e n t
W . W . S u m m e e w il l , V ic e P r e s id e n t
M. B . G u t h r ie , C a sh ie r
W . F . S c h m id t , A ss’t C a s h ie r
M. E . T a ylor , A u d ito r

D IR E C T O R S
D r , E . M. M ac E w e n
R. J. B a sc h n a g e l
M. B . Gu t h r ie
G eorge A. T h o m p s o n
Guy A . S t ev e n s
B e n S. S u m m e r w il l
W . W . S u m m e r w il l

M ember of Federal D ep osit Insurance Corporation

N orthw estern Banker


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

January 1943

Mr. W elch, p re s id e n t of th e P eo p les S a v ­
in g s B a n k , C ed ar R ap id s, has b een n am ed a
m em b er o f th e A B A F e d e ra l L e g is la tiv e
C om m ittee, as w ell as a m em ber of th e
su b -co m m ittee of th e A B A on B a n k ru p tc y
L eg isla tio n . T he a p p o in tm e n t w as m ade
b y W. L. H em ingw ay, p re s id e n t o f th e
A m erican B a n k e rs A sso ciatio n .

61

-•
available for th e ta x paym ents and
m an y of th e notes w ill probably be
held over u n til th e second or even th e
th ird year. T hey w ill be usable at any
tim e for ta x paym ents, and, in th e
m eantim e, provide an in te re st earn in g
in v estm en t redeem able at any tim e if
cash is needed for oth er th a n ta x p ay ­
m ents.
B ut to th e b an k in g system th e notes
accom plish an im p o rta n t m echanical
benefit. Incom e ta x collections come
into th e T re a su ry at four periods of
th e y ear and in huge am ounts. S harp
fluctuations are th ereb y occasioned in
T re a su ry deposits w ith F ed eral R e­
serve B anks and, consequently, in
reserv e balances and excess reserves
of m em ber banks. The m ore th e notes
are b o u g h t in an ticip atio n of taxes and
the m ore th e y are used for p ay m en t of
taxes, th e m ore w ill th ey help in
sm oothing out these p a rtic u la r fluctua­
tions.
Use of w a r loan credits is an o th er
m eans by w hich b an k s can help to
sm ooth out th e fluctuations caused by
new financing. C onsidering th e im ­
m en sity of th e problem ahead and th e
vital necessity of m ain tain in g a sound
b an k in g stru c tu re , it seem s only reas­
onable to expect th e u tm o st coopera­
tion am ong b an k ers to do all things
possible to accom plish th a t end, re g a rd ­
less of an y profit in th e doing.

Wins Promotion
W ord has been received th a t Miss
H elen M errim an, P ierso n high school
grad u ate, and form er em ploye of th e
F a rm e rs Savings B ank, has received
a n o th e r prom otion.
H elen is now a teller in th e F irs t
N ational B ank a t B urbank, California.

IOWA

NEWS

•

J. H ow ard, tellers; W. F ra n k Howell,
a ssistan t tru s t officer; and George D.
Jorgensen, a ssistan t cashier.
H e rb ert L. H orton, president, acted
as to astm aster and p resented the
aw ards.

Relinquishes Stock
It has been announced th a t Mrs.
M innie G. Johnson, of Somers, has
relin quished h er stock in the Lake City
State B ank to the directors of th e in sti­
tution.

The en tire stock of th e b an k is now
held by local persons.

L ikes It D ry
T hree Canadians, sleeping in a te n t
in one of th e E nglish tra in in g areas
last sum m er, w ere ru d ely aw akened
by a terrific crash not far away.
“W hat w as th a t — th u n d e r or
bom bs?” asked one.
“Bombs,” w as th e laconic answ er.
“T h an k heaven for th a t!” chim ed
in th e th ird. “I th o u g h t we w ere
going to have m ore rain !”

STATEMENT OF CONDITION
DECEMBER 31, 1942
ASSETS
Cash and Due from B an k s..................................................................................................$ 4,606,448.40
Loans and D iscou nts............................................................................................................. 2,805,704.90
U nited States Government Bonds and Securities.................................................... 2,381,852.75
242,380.80
State, County and M unicipal B onds.............................................................................
Other Bonds and Secu rities................................................................................................
215,812.30
Stock in the Federal Reserve B an k .............................................................................. ..
18,000.00
Bank Building:, Furniture and F ixtu res........................................................................
175,000.00
Other A ssets ..................................
18,270.38
$10,463,469.53

L IA B IL IT IE S
Capital ........................................................................................................... $400,000.00
Surplus .......................................................................................................... 210,000.00
Undivided Profits ...........................................................
15,962.83
Reserve for C ontingencies. ..........................
40,000.00
Total Capital A c c o u n t...................
Reserve for Taxes and In terest...................................................................................
Other L ia b ilitie s ............................
Deposits ................................................................................

665,962.83
9,506.43
110.00
9,787,890.27
$10,463,469.53

25 Y ears’ Service
At th e a n n u al C hristm as d in n er
p a rty of th e Iowa-Des Moines N ational
B ank & T ru st Co. gold w atches w ere
aw arded to six new 25 y e a r service
club m em bers.
A special observance w as held for
th e 30 em ployes now in th e arm ed
services by th e 255 officers and em ­
ployes, h u sb an d s and w ives w ho a t­
tended th e dinner.
The new club m em bers are Miss
Iren e M eyers, a secretary; Jo h n R.
Beem an, m an ag er of th e collection
departm en t; L oraine Ew ing, W illiam
YOUR STATE BANKERS ASSOCIATIO N
OFFICIAL SAFE, V A U L T A N D
TIMELOCK EXPERTS

A. G. Sam, President
J. P. Hainer, Vice 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
MEMBER FEDERAL DEPOSIT INSU R AN C E CORPORATION

BANK
I N S I O U X C ITY

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

N orthw estern Banker

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Federal Reserve Bank of St. Louis

January 19b3

given a leave of absence from the
bank, effective D ecem ber 21st, and
goes into Officers T raining, U nited
States Army. Mr. R yan has been w ith
the F irs t N ational about tw o and onehalf years, com ing here from the Live
Stock N ational, Sioux City.

IO W A NEW S
FRO M

H ERE A N D

TH ERE

Both banks at M anning reduced in ­
terest rates last October from 2 to 1
per cent.

By J. A. Sarazen, Associate Editor

L

J. PAULSO N recen tly joined the

. K iron State B ank as a ssistan t
cashier and succeeds W m . E. W enzel,
w ho has accepted a position w ith the
Security State B ank a t M cIntosh,
South Dakota, as cashier. F o r th e last
five y ears Mr. P aulson has w orked for
the B ank of A m erica in th e W hitley
and Hollywood bran ch es in California.
He fo rm erly lived at Boxholm , Iowa,
before going to California.
C. M. Stenberg, fo rm erly assistan t
cash ier at th e Odeboldt State Bank,
resigned his position and has accepted
a position w ith th e F o rt K earney
S tate Bank, F o rt K earney, N ebraska.
P h y llis C. K rahl w as m oved up to as­

sum e his duties. A rlene Stonebery
w as added to the force as bookkeeper.
New in terest rates paid at the F arm ­
ers S avings Bank, R ick etts, are 2 per
cent on 12 m onths CD’s and IV2 per
cent on six m onths CD’s and savings.
The b ank w as paying 2% p er cent u n ­
til recently.
D enison banks are now paying IV2
p er cent in terest on 12 m onths CD’s
and 1 p er cent on six m onths CD’s and
savings accounts. A reduction w as
m ade last A ugust.
G.

R obert N. Garlock, assistan t cashier,
Dallas County State Bank, enlisted in
th e U nited States N avy and rep o rted
to his base at Hollywood, Florida, De­
cem ber 15th, as a com m issioned E n ­
sign. R u ssell H orn, also a ssistan t
cashier here, w ill take over his duties
during his absence.

Effective Ja n u a ry 1st, the Ute State
Bank will pay 1 p er cent in te re st com­
puted sem i-annually, Ju n e 30th and
D ecem ber 30th, on savings accounts
up to $500. No in terest w ill be paid
on accounts over $500 and no in te re st
on accounts of $10 or less. CD’s w ill
be w ritte n for 12 m onths only and w ill
bear 1 p er cent interest. The b ank has
been paying 2 p er cent in terest.

T. R yan, a ssistan t cashier, F irst

N ational

Bank,

Denison,

has

been

All banks in Jasper county, w ith th e

CHICAGO CORRESPONDENT
In these wartim es — fast, friendly service to correspondent
banks is m ore needed than ever. If your custom ers ship live­
stock to the U n ion Stock Yards, then the Drovers N ational
B ank is a lo g ic a l c h o ic e for your C h ica g o C o rresp o n d en t.

STRATEGICALLY LOCATED to C h icago’s m o st fam ous square
m ile— the U n io n Stock Y ards—the entrance o f the D rovers
B anks is o n ly a sto n e ’s th row from P ack in gtow n .

JOURNEY’S END at the U n io n Stock Yards, C h icago. A n d the start o f a new chain

o f coop eratin g bank services—n ot the least o f w h ich is transm itting the p roceed s
quickly to the lo ca l bank o f the shipper o f these w h ite faces.

DROVERS NATIONAL RANK
DROVERS TRUST & SAVINGS BANK
MEMBERS, FED ERAL

DEPOSIT

INSURANCE

CORPORATION

WHITE FA CES on dry lot. S oon they’ll b e ready for market,

but n ow they’re h elp in g convert a bum per crop o f hybrid
corn in to prim e b eef for the F ood-F or-V ictory Program .

N orthw estern B anker

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

January 1943

U N I O N

S T O C K

Y A R D S

«

C H I C A G O

63

Statement of Condition
DECEMBER 31, 1942

DIRECTORS
V . O. FIGGE
P re sid e n t
J . L. HECHT
F ren ch and H ech t, In c .

ASSETS
Cash ______________________________________ $16,554,111.42
United States Governm ent Securities_________ 18,805,400.53
M unicipal and Federal Land Bank B onds____
1,431,307.14
Loans -------------------------------------------------------- 8,172,779.61
Federal Reserve Bank Stock_________________
72,000.00
F u rn itu re and F ixtures_____________________
29,027.72
Overdrafts _________________________________
2,053.71
$45,066,680.13

3 . M. HUTCHINSO N
Vice P re sid e n t a n d T r u s t Officer
CHARLES J. JOHNSON
In d e p e n d e n t B a k in g Co.
JOS. S. KIMMEL
R e p u b lic E lectric Co.
FREDERICK H. LAMB
P h y sic ia n
H. E. LITTIG

C apital
Surplus
Reserves
Deposits

LIABILITIES
------------------------------------------------------ $ 600,000.00
------------------------------------------------------ 1,800,000.00
and Profits________________________ 1,133,036.57
----------------------------------------------------- 41,533,643.56

Iow a -Illin o is Gas a n d E lectric Co.

$45,066,680.13

HERM AN STAAK
Vice P re s, a n d C ashier
KUNO H. STRUCK
Vice P re sid e n t
KARL P . TESKE
T eske M illing Co.
CABLE G. VON MAUR
P etersen -H a rn ed -V o n M aur, In c .
T. J. W ALSH
W alsh C o n stru ctio n Co.
C. D. W ATERM AN
Lane a n d W a term a n

DAVENPORT B A N K
AND T R U S T ^ ^ C O M P A N Y
'M em ber J e d m a t

DA VENPO RT,

RjHAeAve. S y i i e t n ^

IOWA

Member Federal Deposit Insurance Corporation

N orthw estern Banker

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Federal Reserve Bank of St. Louis

January 19b3

64

W A A C Portrayed in Bank Mura!

exception of one bank, w ill reduce in ­
te re st rates uniform ly to 1 p er cent,
effective Ja n u a ry 1st. Two p er cent
w as the prevailing rate.
Effective Ja n u a ry 1st, th e Odeboldt
B ank reduced th e m axim um
am ount accepted in a savings account
to $500 on w hich it w ill pay interest.
The in te re st rate paid is 2 p er cent.
L ast October 1st, th e b ank reduced in ­
te re st rates from 2 to 1 per cent on
CD’s and w rite the CD’s for 12 m onths
only. O ther banks in Sac county also
lim it th e am ount accepted in savings
accounts to $500.
State

Am ong the letters we received from
fellows now in th e U nited States
A rm ed Forces w as one from L ieu ten ­
ant D ale H. Sm ith, form erly a ssistan t
cashier, T ipton State Bank. He w rites
us th a t he has ju st com pleted six
m onths of finance train in g , th ree of
w hich w as technical and th ree officer
candidate school, th e rew ard being a
com m ission as a L ieu te n an t in th e
Finance D epartm ent. More luck to
you, Dale.

| N T H E in te re st of prom oting th e
I sale of W ar Bonds and Stam ps,
a n o th e r m u ral has been added to
those already ap pearing on th e w all
of the lobby of th e C entral N ational
B ank and T ru st Company, Des Moines.
The new est m em ber of th e C entral
N ational m u ral fam ily p o rtra y s some
of the activities of th e W om en’s A rm y
A uxiliary Corps, h e ad q u artered at
F o rt Des Moines.
Com m enting on the m ural, F ra n k
R. W arden, vice p resid en t of th e bank,

says: “T his m u ral has been dedicated
to th e WAAC, and featu res several of
th e activities of th a t fine organization.
The m u ral is ten feet high by eleven
feet wide, the color-bearers being al­
m ost life-size.
“F o rt Des M oines being h ead q u ar­
te rs for th e W om en’s A rm y A uxiliary
Corps, we are doing every th in g pos­
sible to prom ote and publicize th is or­
ganization. To our know ledge this is
th e first m u ral ever developed in the
in te re st of th e WAAC.”

FIRST NATIONAL BANK
CEDAR FALLS, IOWA

Statem ent of Condition as of Decem ber 31, 1942
L IA B IL IT IE S

R ESO U R CES
Cash and Due from B anks. . . . • . . $
U. S. Government Bonds....................
U. S. Guaranteed Bonds...................
State and Municipal Bonds. . . . . .
Stock in the Federal Reserve Bank
Loans and Discounts.
2 8 7 ,9 4 9 .2 7
Banking House ....................................
Furniture and Fix tu re s......................
Other Assets..............
1 5 ,3 7 0 .0 0

7 2 9 ,0 0 1 .3 9
6 3 6 ,6 8 6 .1 5
3 5 ,0 0 0 .0 0
4 6 1 ,2 5 2 .6 7
3 ,6 0 0 .0 0
2 6 ,4 0 0 .0 0
5 ,9 2 4 .5 0

Capital S t o c k .........................................$

2 0 , 0 0 0 .0 0

Undivided

1 5 ,1 7 8 .3 4

Profits

.............. • . . .

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

Deposits

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

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

W. E. Brown, Cashier
Edwin L. Unger, Asst. Cashier

Member Federal Reserve System
Member Federal Deposit Insurance Corporation

N orthw estern Banker

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Federal Reserve Bank of St. Louis

January 1943

1 3 ,2 4 3 .5 5

Reserves

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

V. W. Johnson, President
J. B. Newman, Vice President

1 0 0 ,0 0 0 .0 0

Surplus ...............................................

We quote from a le tte r received from
C. W. Logan, president, F irst T ru st &
Savings Bank, Moville: “T his w ill
acknow ledge receipt of y o u r le tte r of
D ecem ber 18th, relative to our adopt­
ing service charges as suggested by
th e Iowa B anking D epartm ent. W e
w ish to advise th a t we did adopt th e
plan at our county m eeting, except
th a t if those plans call for charging
every custom er once each m onth, w e
reserve the rig h t in our own banks to
forego charges on substan tial ac­
counts.” Moville is in W oodbury coun­
ty.
Sign in th e H artw ick State Bank:
If You W ant to H oard Som ething—
H oard W ar Bonds.
D es M oines banks announce a new
uniform analysis schedule of service
charges as follows:
M aintenance of account—$1.00.
E ach check w ritte n —3c.
E ach deposit m ade—3c.
Local checks deposited—l% c.
Out-of-town checks deposited—3c.
Credit to th e account or “earning
allow ances” w ill be 2 per cent per an ­
num on loanable balance after deduct­
ing 25 p er cent reserve. In o ther
w ords, 12% cents p er m onth for each
$100 of average collected balance. F o r
exam ple, a $400 balance entitles th e
depositor to a 50c incom e credit. No
charge is m ade for any m onth in w hich
the account is en tirely inactive, nor is
any charge m ade against accounts
w ith an average collected balance of

65

----------------------------------------.

IOWA

NEWS

•-

$200 or m ore—if th e n e t loss u n d e r
analysis is less th a n $1.

low-type counters have been installed
and th e old cage has been rem oved.

Mapleton banks reduced in te re st
ra te s paid on deposits to 1 p er cent on
savings and six m o n th s CD’s and 1%
p er cent on 12th m o n th s CD’s. The
fo rm er ra te w as stra ig h t 2 p er cent.

Bank Stock Sold

The First Capital National Bank,
Iowa City, m ade a change in in te re st
paid on deposits, effective J a n u a ry 1st.
In te re s t w ill be a t th e ra te of 1 p er cent
p er annum . The b an k w as paying IV2
p e r cen t on savings accounts up to
$500 and 1 p er cent th e re a fter.

A. W. Jones, p resid en t of th e Cen­
tra l T ru st and Savings Bank, Chero­
kee, has announced th e sale of a block
of stock to Jo h n B. Keeline of Council
Bluffs.
Mr. Keeline w as for about ten y ears
assistan t cashier in th e Council Bluffs
Savings Bank, serving as an a ssistan t
cashier at the tim e of sale of his stock
in th a t bank to his associates.
No change is being contem plated in

the force here, Mr. Jones said. A sub­
stan tial am ount of th e stock is still
owned by th e president, w ho w ill con­
tin u e to give some tim e to the m anage­
m ent of the bank.

Added to Executive
Committee
Jam es A. Cum m ins, regional m an ­
ager of th e Iowa V ictory F u n d Com­
m ittee for the U nited States T reasury,
m akes th e follow ing statem ent:
“Since th e Iow a Regional V ictory
F u n d Com m ittee w as announced a

All b an k s in Pow eshiek county are
now paying 1 p er cent on deposits.
The fo rm er rate w as 2 p er cent up
u n til last Septem ber 15th, w h en th e
change w as made.

Pella Bank Changes
M ortim er Goodwin left last m onth
for service w ith the U nited States
N avy as a lieu ten an t. Mr. Goodwin is
executive vice p resid en t of th e Pella
N ational B ank. He has been active in
co m m unity service.
C harles F. D y k stra has been elected
to th e post of p resid en t of th e Pella
N ational Bank. Mr. D yk stra is agent
for th e Rock Island R ailroad in Pella.
He is progressive and has been active
in civic affairs, especially th e C ham ber
of Commerce.

Hamilton to Harlan
F ra n k S. H am ilton, cashier of th e
M alvern T ru st and Savings B ank since
F eb ru ary , 1936, has been elected cash­
ier of th e H arlan N ational Bank. T his
is considered a v ery fine advancem ent
for Mr. H am ilton, as th e H arlan b ank
is one of th e leading b anks of so u th ­
w est Iowa.

READY
WILLING
and A B LE
serve every need of
correspondent b a n \s

to

Bankers Elect
At a m eeting of th e A llam akee Coun­
ty B an k ers A ssociation last m o n th at
W aukon, officers w ere re-elected for
service d u rin g 1943. C. H. M egorden
w as elected president; M orris K ern d t
of L ansing, vice president, and C lar­
ence H oth of Postville, secretary -treas­
u rer. M em bers of th e legislative com ­
m ittee are A lbert F ru e c h te of New
A lbin and C harles F leen o r of W aukon.

Bank O ffice Remodeled
An extensive program of im prove­
m ents has been com pleted a t the U n­
ion S tate B ank office in W interset.
The lobby of th e b an k has been en­
larged and redecorated, new , m odern

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Federal Reserve Bank of St. Louis

issimi
Member Federal Deposit
Insurance Corporation

rr
ST . L O U IS

87 Years

of Banking Experience

mm*.
'
Northwestern Banker

January 19^3

66

•
few w eeks ago, th e re have been added
to the executive com m ittee th e follow­
ing men:
“R. H. M iller, president, Iow a State
Bank, Algona; A. E. Jensen, president,
F irst N ational B ank, Creston; Wm.
L aw ther, president, F irs t N ational
Bank, D ubuque; F. C. Moeller, p resi­
dent, F o rt Dodge N ational Bank, F o rt
Dodge; G. M. B arn ett, president, G u th ­
rie C ounty State B ank, G uthrie Center,
and Wm. Buxton, III, vice president,
Peoples T ru st & Savings Bank, Indianola.
“W e have had a n u m b er of m eetings

IOWA

NEWS

•

in v arious p arts of the state and th ere
has been every evidence of cooperation
on th e p a rt of all ban k ers in atte n d ­
ance. We, of th e com m ittee, have no
doubt a t all th a t Iowa is going to be
ready and w illing to do h er share of
th e w ar financing from tim e to tim e as
called for.”

Crawford County
Bankers Meet
The ban k ers of C raw ford county
held a county m eeting and d in n er at
the H otel Denison early in Decem ber

and th e attendance w as good. A dis­
cussion took place covering bond
drives, F ederal taxes, service charges
and V ictory bonds for banks and large
investors.
Officers for th e ensuing y ear w ere
elected as follows: T. C. A arestad, p re s­
ident; G lenn M cCracken, vice p resi­
dent, and E llen F itzgerald, secretarytreasu rer.

New Cashier at Leon
C harles Kelley, a state b anking de­
p artm en t exam iner, has resigned and
has tak en the position of cashier at
the D ecatur County State B ank at
Leon.
Kelley has been associated w ith th e
state banking d ep artm en t since 1926
and in the last 10 years has been in
charge of liquidating closed banks in
several n o rth e a ste rn Iow a counties.

Meets Tragic Death
F reeling H. H am lett, 76, vice p resi­
dent and a director of th e U nion B ank
and T ru st Com pany at S traw b erry
Point, w as tram pled and gored to
death by a bull on his farm four m iles
n o rth east of S traw b erry Point. H is
body w as found in the barn.

Holds Annual Meeting

UN IQ U E statewide coverage: This bank m aintains cor­
respondent contacts w ith more than 85 per cent o f all
the banks in W isconsin!

Result: Prom pt, efficient, econom ical

collection o f W isconsin checks and drafts — an important service
to other banks throughout neighboring states.
BANKS and BANKERS DIVISION: George T. Campbell. . . V ic e -P r e s id e n t
Richard J. Lawless, Donald A. Harper . . . A s s is ta n t V ic e -P r e s id e n ts

FIRST WISCÖMI
IA TI0IA L BA M
M em ber o f th e
f e d e r a l D e p o s it
i n s u r a n c e C o r p o r a ti o n

Northwestern Banker


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Federal Reserve Bank of St. Louis

OF

MILWAUKEE

January 1943

O.
E. Van H orn w as elected p resi­
dent of the L ohrville Savings B ank at
the an n u al m eeting of th e stockhold­
ers. T his position w as m ade v acant
by the recen t death of E. E. Earw ood.
Mr. Van H orn is also cashier of th e
bank.
O ther officers elected at the m eet­
ing are O. A. R unquist, vice president,
and Leo K innick, a ssistan t cashier.
D irectors are H. C. Lohr, J. W. P itt­
m an, O. A. R unquist, H. R. W atterso n
and O. E. V an H orn.
T he reg u lar an n u al dividend w as
declared.

Oto Manager
W. E. Clark, Ute, has accepted a posi­
tion as m anager of th e ban k at Oto.
T his b ank is a b ran ch of th e Clim bing
H ill Savings Bank.

Into New Home
The Security State B ank of G uttenburg, a consolidation of th e tw o banks
w hich form erly served th e com m unity,
has m oved into its new q u arters in th e
old G uttenberg S tate B ank Building.
The bank has been conducting its
business in th e old Clayton C ounty
S tate B ank B uilding for th e past sev­
eral w eeks w hile rem odeling w ork on
the o ther building has been u n d er way.

67

.
To Cashier's Post
Ivan C. C um m ings of Sigourney has
accepted a position as cashier of th e
Peoples T ru st and Savings B ank at
R iverside. Mr. and Mrs. Cum m ings
m oved to R iverside w here th ey have
purchased pro p erty .

On Bond Committee
A n nouncem ent has been m ade th a t
Ben S. Sum m erw ill and F ra n k D. W il­
liam s, p resid en ts of Iow a C ity’s two
banks, have been nam ed to re p re se n t
John so n county on th e V ictory F u n d
bond com m ittee.
U nder th e V ictory loan set-up, th e
state is divided into 18 d istricts. Jo h n ­
son county is in th e d istrict w hich in ­
cludes Iowa, L inn, B enton and Jones
counties.

IOWA

Promotions
Lela E. Roose, w ho has held the posi­
tion as first teller w ith th e State B ank
of Allison for several years, w as
elected a ssista n t cashier of th e bank
by th e board of d irecto rs at its reg u lar
m eeting last m onth. S terling K oester,
w ho has been w ith th e b an k since last
June, w as prom oted to th e position of
first teller to succeed Miss Roose.

Henstorf Heads Bank
The board of directors of th e F irs t
N ational B ank of F a rra g u t, appointed
R. O. H enstorf, presid en t, to succeed
W illiam Rogers, deceased, and ap ­
pointed C. C. Case cashier, to succeed
R. O. H enstorf.
R obert H. H enstorf, a ssista n t cash­
ier, re ta in s his position and Miss Harrie tte Roscoe continues as bookkeeper
and secretary.

•
W ith th is novel set of tables in hand,
one can find at a glance w h at his own
taxable statu s is as to federal income,
estate and gift taxes. The tables apply
to incom es and estates in practically
all brackets. The correct figures cov­
erin g v irtu ally every individual situ a­
tion have been w orked out and can be
located as readily as reading a scale
or gauge.

of Chicago w as declared by th e direc­
to rs last m onth. The dividend of $4.50
is payable Ja n u a ry 2, 1943, to stock­
holders as of Decem ber 15th.

Tax Computation Tables
The Public N ational B ank and T ru st
C om pany of New York has issued a
pocket folder of easy-reading tax com­
p u tatio n tables designed to sim plify
ta x problem s u n d er th e R evenue Act
of 1942.

,

Named Bank President
A t a m eetin g of th e d irectors of th e
M aynard Savings B ank last m onth, L.
D. Rowley, w ho has been vice p re si­
den t for a n u m b er of years, w as elected
president, to succeed th e late Jo h n
M eyer, and Otto Schm idt w as elected
vice president.

NEWS

The tables show at a glance th e
am ount of reduction in both estate tax

Live Stock
N ational Bank
fflie

----------- ----------------------------------------UNION

STOCK

Y ARDS • T E L E P H O N E

STATEMENT

OF

CONDITION

December 31, 1942

RESOURCES
C a s h a n d d u e f r o m b a n k s ................................................. $ 1 9 , 9 9 4 , 5 1 3 . 9 2
U . S. T r e a s u r y b i l l s a n d c e r t i f i c a t e s ........................ 1 1 , 9 9 8 , 9 7 3 . 5 0
U . S . G o v e r n m e n t b o n d s a n d n o t e s .......................
2 ,8 1 6 ,1 0 0 .0 0
S ta t e a n d m u n i c i p a l s e c u r i t i e s .....................................
7 5 2 ,5 0 1 .0 0
O t h e r m a r k e t a b l e b o n d s ..................................................
8 8 0 ,1 3 4 .1 7
L o a n s a n d d i s c o u n t s ............................................................
6 ,7 7 1 ,3 7 6 .6 4
F e d e r a l R e s e r v e B a n k s t o c k ..........................................
7 5 ,0 0 0 .0 0
B a n k b u i l d i n g ..........................................................................
4 2 5 ,0 0 0 .0 0
I n t e r e s t e a r n e d , n o t c o l l e c t e d .......................................
4 3 ,3 6 5 .2 1
C u r r e n t r e c e i v a b l e s a n d o t h e r a s s e t s ......................
3 1 ,2 6 7 .9 7
$ 4 3 ,7 8 8 ,2 3 2 .4 1

LIABILITIES
C a p i t a l ............................................................................................ $ 1 , 0 0 0 , 0 0 0 . 0 0
S u r p l u s ...........................................................................................
1 ,5 0 0 ,0 0 0 .0 0
U n d i v i d e d p r o f its a n d r e s e r v e s ...................................
15 3 ,0 1 7 .8 0
U n e a r n e d d i s c o u n t ...............................................................
3 7 ,7 4 4 .5 2
D e p o s i t s ........................................................................................ 4 1 , 0 9 7 , 4 7 0 . 0 9
$ 4 3 ,7 8 8 ,2 3 2 .4 1

BOARD

OF

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

Frederick H. Prince
Robert j . D unham
Investments

W illiam J. O’Connor
Ass’t General Manager, Union
Stock Y a rd & Transit Co.

Richard H ackett

Worth County Bankers Meet

General M anager, Central
Manufacturing D istrict

A t a m eeting of th e W o rth C ounty
B an k ers A ssociation, O scar Olson of
N orthw ood w as elected p resid en t and
E. G. F ard al, H anlontow n, secretary of
th e association. All b anks of th e coun­
ty w ere rep resen ted a t a m eeting of
the group held in N orthw ood last fall.

O r v is T. H e n k le


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Federal Reserve Bank of St. Louis

Ralph M. Shaw
Winston, Strawn & Shaw
T homas e . W ilson

Vice-President and General
Manager, Union Stock Y ard
& Transit Co.

Chairman of the Board,
Wilson & Co., Inc.

D avid H. Reimers
President, The Live Stock N ational Batik of Chicago
SERVING

AGRICULTURE
S fv n c e

Northern Trust Dividend
The 180th consecutive q u a rte rly divi­
dend of The N o rth ern T ru st Com pany

Y AR DS 1 2 2 0

ME MB E R

F E D E R A L

D E P O S I T

AND

INDUSTRY

J8 6 8
I N S U R A N C E

C O R P O R A T I O N

Northwestern Banker

January Ì943

68

-•
and incom e ta x resu ltin g from a stated
gift of p a rt of a ta x p a y e r’s property.
By m eans of th e tab u latio n s it is a
sim ple m a tte r to com pare th e to tal
prospective estate, gift and income
taxes on taxable p ro p e rty both before
and a fte r th e gift. T hey enable one to
ascertain quickly th e am ount of gift
taxes on such gift, and b rin g all m atter
p ertain in g to each prospective gift into
ju x tap o sitio n w ith related incom e and
estate ta x tabulations.
The Public N ational B ank and T ru st
Com pany “Tri-Tax T ables” are said to
be am ong th e finest of aids in m aking

IOWA

NEWS

clear and sim ple th e increasingly com­
plicated m atter of tax com putation.
The h andy pocket size folder is avail­
able on req u est to th e bank.

A . B. A . Staff Changes
T hree m em bers of the staff of the
A m erican B ankers A ssociation have
been appointed deputy m anagers of
th e A ssociation, according to an a n ­
nouncem ent of staff changes m ade by
A. B. A. executive m anager H arold
Stonier.
Dr. E rn e st M. F ish er, w ho has been

The Waterloo Savings Bank
W A TERLO O , IOWA
Statem ent of Condition as Made to Superintendent of Banking
at the Close of Business Decem ber 31, 1942
R E SO U R C E S
F irst M ortgage L o a n s-------------------------------------------------$ 605,576.58
Loans S ecu red by C o lla tera l_________________________ 1,000,484.03
C om m ercial Loans S u p ported by F in an cial
S tatem ents _________________________________________
662,779.09
O verdrafts ___________________________________________
R ea l E state (form er bank b u ild in g in c lu d e d ) ----------F urnitu re and F ix tu res_____________ __________________
State, C ounty and M u n icip al B o n d s--------------------------140,146.36
M arket B o n d s ________________________________________
116,423.51
C om m ercial P aper __________________________________
497,500.00
S ecu rities o f the U . S. G overn m en t and its
In stru m en talities __________________________________ 3,920,085.22
Cash on H and and D u e from B a n k s--------------------------- 2,277,557.68

$2,268,839.70
852.35
78,700.00
20,760.71

6,951,712.77
$9,320,865.53

L IA B IL IT IE S
$

C apital S t o c k ---Su rp lus _________
U n d iv id e d P rofits
D ep o sits ________

200, 000.00
235,000.00
15,854.10

$ 450,854.10
8,870,011.43
$9,320,865.53

D ep o sits Insured by The Federal D ep o sit Insurance Corporation
W ashington, D. C.
$5,000.00— M axim um Insurance for Each D epositor—$5,000.00

D IR E C T O R S

O F F IC E R S
H . G. NORTHEY, P re s id e n t
R. W . W a it e , V ice P re sid e n t
Carte t o n S ia s , Vice P re s id e n t
J . J . M il t e r , C ashier
F r a n c is R. L a B a rr e , A ss’t C ashier
V. S p a l d in g M il l e r , A ss’t C ashier
Ol iv e r J . S c h u t t e , Ass’t C ashier

Northwestern Banker


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

January 1943

•-

Cl a r e n c e E . Ca m pb e l l
Ca r l e t o n S ia s
R. W . W a it e
H arry G. N o r t h e y
J . J . M il l e r
L o w e ll J . W a l k e r
C. F . A l tsta d t

H arry A. L im b e r t
W il l E. O gle
C. R. D avis
K . L. B ragdon
G eo rg e E . P ik e
Clyde H in s o n
J a m es G. E a sto n

director of research in m ortgage and
real estate finance for the A ssociation,
has been appointed deputy m anager
in charge of th e savings division and
w ill continue to be in charge of th e
m ortgage and real estate finance de­
partm ent.
J. D. D unkerley, w ho has been
assistan t secretary of th e savings
division, will be associated w ith Dr.
F ish er as secretary of the division. In
addition, Mr. D unkerley has been ad­
vanced from a ssistan t secretary to
secretary of th e m em bership com m it­
tee.
W illiam Pow ers, director of th e
d ep artm en t of personnel and custom er
relations, has been nam ed deputy
m anager in charge of th a t departm ent.
J. E. Drew, w ho has been secretary
of th e A ssociation’s public relatio n s
council and secretary of the n ational
ratio n banking com m ittee, has been
nam ed deputy m anager in charge of
those activities.
W alter B. French, w ho has been
deputy m anager in . charge of th e
A ssociation’s consum er credit d ep art­
m ent, w ill assum e th e responsibilities
of th e state b ank division and th e b an k
m anagem ent com m ission in addition to
his p resen t activities.
Melvin C. Miller, form erly a ssistan t
secretary of th e state b ank division and
of th e b an k m anagem ent com m ission,
w ill be associated w ith Mr. F ren ch as
secretary of both th e division and th e
commission.
W illiam . T. W ilson has been p ro ­
m oted from assistan t secretary to sec­
re ta ry of the state secretaries section
and w ill continue as director of th e
public education com m ittee.
Colonel F ra n k W. Sim m onds, senior
deputy m anager of th e A ssociation,
w ill devote his atten tio n to general
ad m in istrativ e responsibilities in asso­
ciation w ith th e executve m anager.

Knight Promoted
Joseph R. K night, form er officer of
th e C ontinental Illinois N ational B ank
and T ru st Com pany in Chicago, w here
he has lived for th e p ast 12 years, has
been prom oted to th e ra n k of Major,
A rm y of th e U nited States, H eadquar­
te rs of th e F o u rth Service Com m and
announced.
M ajor K night attended th e K ansas
City Law School, w hich later becam e
th e U niversity of K ansas City, in
M issouri, w here he received th e LL.B.
degree. He previously attended Cor­
nell College, at Mt. Vernon, Iowa.
E n terin g th e A rm y in April, 1942,
M ajor K night attended th e A rm y
Finance School at F o rt B enjam in Har-

69

—•
rison, Indiana. He cam e to H ead q u ar­
ters, F o u rth Service Com m and in A t­
lanta, in A ugust, 1942, as a captain,
assigned to th e finance division.

Arthur Reynolds Dies
A rth u r R eynolds, 74, natio n ally
know n b a n k e r and fo rm er p resid en t
of th e Des M oines N ational Bank,
here, died recen tly at his hom e in San
Mateo, California.
Mr. R eynolds had gone to th e P a­
cific coast in 1933 as vice p resid en t
an d executive officer of th e B ank of
A m erica N ational T ru st and Savings
A ssociation, founded by A. P. Gian-

IOWA

NEWS

—

219,000, com pared w ith $136,608,000 a
y ear earlier. Cash holdings w ere re ­
duced to $124,844,000 from $148,576,000
at th e close of 1941, w hile loans and
discounts declined to $46,622,000 from
$52,200,000.
T he earnings for th e year ended
D ecem ber 31, 1942, w ere $961,445.22,
w hich is equivalent to $32.05 per share
on capital stock and 6.69 p er cent on
average capital stock, su rplus and u n ­
divided profits. In 1941, th e earnings
w ere $923,788.65, w hich w as equivalent
to $30.79 per sh are on capital stock and

6.61 p er cent on average capital stock,
su rplus and undivided profits.

Japs Work for Their
Own "Funny" Money
How a quick-thinking M arine cap­
tain w on th e w hole-hearted su p p o rt of
Jap prisoners on Guadalcanal, th ro u g h
th e use of th e ir own “ph o n y ” m oney
w as related by Lt. Col. J. J. Gannon,
U. S. M. C., w ho re tu rn e d to th e San
Diego M arine Base recently from the
Solomons action.

STA TEM EN T OF C O N D IT IO N

Mercantile-Commerce
B a n k and Trust Company
Locust - Eighth ~ St. Charles
St. Louis

DECEM BER 31, 1942

THE R E SO U R C ES

ARTHUR REYNOLDS

Cash and D u e from B a n k s ....................................................

$79,124,380.43

U . S. G overn m en t O b ligation s, direct and guaranteed
(inclu d in g $37,280,126.85 p l e d g e d * ) .....................

111,420,669.27

O ther B on d s and S e c u r it ie s .................................................

30,212,055.62

D em and and T im e L o a n s ....................................................

43,318,583.85

Stock in Federal R eserve Bank in St. L o u i s ..................

420,00 0 .0 0

Real Estate (C om pany’s B u ild in g ) ......................................

2,790,536.40

O ther R eal Estate (Form er Bank o f C om m erce B ldgs.) .

1,500,000.00

O v e r d r a f ts ....................................................................................

39,431.12

C ustom ers’ Liability on A cceptances and Letters
o f C r e d it ...............................................................................

172,880.37

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

16,086.67
$ 2 6 9 ,0 1 4 ,6 2 3 .7 3

n in i a t San Francisco. The form er
Iow a b a n k e r h ad re tire d th re e years
ago.
B orn in P anora, Iowa, M arch 10,
1868, Mr. R eynolds rose to a place of
distinction am ong the financiers of
th e nation.
He served as p resid en t of th e fo r­
m er C ontinental and C om m ercial N a­
tion al B ank of Chicago, Illinois—one
of th e larg est in th e co u n try —and had
been honored w ith th e p residency of
th e A m erican B an k ers A ssociation, in
w hich he h ad held a n u m b er of lesser
offices.

Northern Trust, Chicago
The deposits of The N o rth ern T ru st
Com pany, Chicago, rose in 1942, $38,000,000', to a new high of $459,248,000.
H oldings of U nited States g overnm ent
secu rities on D ecem ber 31st w ere $216,-

THE L IA B IL IT IE S
Capital S t o c k ...............................................................................
Surplus .............................................
U n d ivided P r o f i t s .........................
R eserve for D iv id en d D eclared

$10,000,000.00
4,000,00 0 .0 0

5,875,684.13
150,000.00

R eserve for Interest, T axes, etc.
Unpaid D iv id e n d s ........................

4,025,684 .1 3
4 7 4 ,0 7 8 .4 6
2,417.55

Bank’s Liability o n A cceptances and Letters o f Credit
O ther L ia b ilitie s ........................................................................

172,880.37
9,074.94

D ep o sits, Secured: Public Funds . . $ 30,745,111.38
O ther D ep o sits, D e m a n d ..................

187,459,677.64

O ther D ep o sits, T i m e .........................

32,125,699.26

250,330,488 .2 8
$ 2 6 9 ,0 1 4 ,6 2 3 .7 3

* A ll S e c u ritie s p le d g e d are to the U. S. (government or its Agents, State o f
M issouri a n d the City o f St. Louis, to secure deposit a n d fiduciary obligations.

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 19J3

70

•
Colonel G annon, officer in charge of
th e P erso n n el Classification A ssign­
m ent Station (a recen tly adopted sys­
tem to classify th e occupational ability
of all M arines) related th e follow ing
incident:
“W hile serv in g in th e w eapons unit,
I had in m y outfit Capt. Mike Davido­
vich, w ho w as placed in charge of all
Jap prisoners. The C aptain possessed,
in addition to his keen sense of hum or,
a g re a t u n d erstan d in g of h u m an n a ­
ture.
“In one of our p a rtic u la r engage­
m ents we took a n u m b er of Jap p ris­
oners and . . . a bulk y safe used by
th e ir p ay m aster d ep artm en t in paying
off construction w orkers. W ith in we
found thousan d s of dollars w o rth of
crude im itation shilling notes ev id en t­
ly used by th e Jap s in paying laborers.

CONDENSED

IOWA

NEWS

Our first th o u g h t w as to th ro w the
m oney away, b ut C aptain Davidovich
quickly intervened.
“ ‘F in d me th e biggest and sm artest
Jap in cam p and b ring him to m y te n t
im m ediately, he told an orderly. A
few m inutes later a big sm art-looking
Jap appeared. T hen th e re st of th e
Jap s w ere lined up in fro n t of his tent.
“T hrough his in te rp re te r, Captain
D avidovich announced loudly th a t
th e re w as going to be a new deal, every
m an w ould have his salary doubled
and exceptional w o r k w ould be
aw arded w ith raises.
“By th e ir buck-tooth grins and
sw eeping bows we assum ed th a t the
C aptain’s plan had stru ck hom e and
m et w ith th e ir high approval.
“To keep th e payroll straig h t,” Col.
G annon said, “it w as necessary to give

STATEMENT

FIRST NATIONAL BANK
IN ST. L OU IS
A t the Close of Business, December 31, 1942
RESOURCES
L o a n s an d D isc o u n ts
$ 74,992,279.45
U . S. G overn m en t S ecu rities
165,255,891.28
O ther S ecu rities G u aran teed b y U .S . G o v ern m en t
4,5 7 7 ,4 6 9 .2 6
O ther B o n d s and S tock s
9,429,385.81
S to ck in F ed eral R eserve B a n k
4 5 3 ,000.00
B a n k in g H o u se, Im p ro v em en ts, F urnitu re
and F ix tu res
482,273.73
O ther R eal E s ta te O w ned
1,450,717.59
C u sto m ers’ L ia b ility a / c L e tters o f C red it,
A ccep ta n ces, etc.
6 8 6 ,726.79
A ccrued In terest R ece iv a b le
698,685.62
O verdrafts
5,095.45
O ther R esou rces
5,324.54
C ash an d d u e from B a n k s
1 03,614,815.29
$361,651,664.81

LIABILITIES
C a p ita l— C om m on
$ 10 , 200 , 000.00
Surplus and P rofits
1 0 ,288,734.77
D iv id e n d D ecla re d , P a y a b le F eb . 27, 1943
240,000.00
R eserv e for T a x e s, In te r e st, etc.
4 8 2 ,973.77
U n earn ed D isc o u n t
129,883.26
L ia b ility a / c L etters o f C red it, A ccep ta n ces, etc.
717,346.29
O ther L iab ilities
12,512.64
In d iv id u a l D e p o s its
$1 8 7 ,2 5 5 ,6 6 4 .3 9
S a v in g s D e p o s its
3 1 ,8 1 0 ,2 7 4 .5 7
B a n k D e p o s its
116,473,706.15
G o v ern m en t D e p o s its
65,9 2 5 .0 0
C ity o f S t. L o u is an d O ther
P u b lic F u n d s
3 ,9 7 4 ,6 4 3 .9 7
T o ta l D e p o sits
3 3 9 ,5 80,214.08
The above statemene reports net deposits in accord­
$361,651,664.81

ance with instructions o f Comptroller of Currency.

Broadway * Locust * Olive
M em ber F ederal D e p o sit Insurance C orporation

Northwestern Banker

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

January 1943

•
th e Japs E nglish nam es. T he first
m an in the fro n t row w as dubbed Joe
Doakes and th en dow n th e line th ey
w ere given such titles as W illie th e
W eeper, H am S tru n g H a rry and Ivan
A wfulitch, w ith every Jap tak in g his
new nam e seriously.
“On pay days,” Col. G annon grinned,
“th e Japs, w ith o u t smile, answ ered
to th e ir nam es in pidgin E n glish as
th ey stepped out of line to receive
th e ir pay.
“S purred by th e double-pay raise
idea of C aptain Davidovich th ey w ere
w illing to w ork on a 24-hour basis.
T hey ra n around th e cam p w ashing
clothes, m ending shoes, scrubbing
ten ts and even w eaving camouflage
nets for our guns.
“T h at C a p t a i n Davidovich had
w orked a m iracle w as evident, as the
Japs, th e ir pockets bulging w ith phony
currency, felt th a t dying for the ris­
ing sun w as never like th is.”

Billion Dollar Bank
The follow ing statem en t by W alter
S. McLucas, chairm an of the N ational
B ank of D etroit, announces D etroit’s
first “billion dollar b an k ” :
“A billion dollar b ank for D etroit
is, like every th in g else, regardless of
size, im p o rtan t only to the degree, day
in and day out, it increases its co n tri­
bution to Victory. B ut as a sh ining
reflection of th e m agnificent p a rt De­
tro it and M ichigan are playing in th e
ever increasing w ar effort—and we,
w ith everybody else, are proud to be
active p a rtn e rs—it is, indeed, im p res­
sive.
“We are p articu larly proud of one
th in g w hich does not show in our
statem en t—we have issued m ore th a n
$100,000,000 W ar Bonds to D etroiters.
Saving now, th ro u g h th e purchase of
W ar Bonds and th ro u g h savings ac­
counts, m eans consum er p u rchasing
pow er later on. A nd purch asin g pow er
com bined w ith corporate reserves for
reconversion to peacetim e production
m ay be th e difference betw een profit­
able em ploym ent or serious unem ploy­
m ent w hen th e w ar is w on and th e
boys re tu rn .”

Federal Reserve Officer
The election of E. C. H arris as a vice
presid en t of th e F ederal R eserve B ank
of Chicago has been announced by
Simeon E. Leland, chairm an of th e
board of directors. Mr. H arris w ill be
located in D etroit and w ill be th e chief
executive officer at th e D etroit branch.
He is presid en t of th e U nion G uardian
T ru st Com pany of D etroit, w ith w hich

71

—•
in stitu tio n he has been connected since
1925.
The rap id rise in th e im portance of
D etroit as an in d u stria l and financial
area has resu lted in increased activ ity
at th e F ed eral R eserve b ran ch and in
th e resp onsibilities of its officers and
directors and has m ade necessary th e
election of a vice p resident, w ho w ill
devote his full tim e to th e D etroit area.
“Mr. H a rris is highly regard ed in
bank in g circles,” Mr. L eland stated,
“and brings to his new position a wide
acquaintance am ong business m en and
bankers, p a rtic u la rly in M ichigan.”
W ith th e exception of tw o y ears w hich
he spent in th e A. E. F. d u rin g th e first
W orld W ar and tw o y ears in th e Ord­
nance Office of th e C incinnati d istrict,
Mr. H a rris has been in business in
M ichigan since 1912. H is first b anking
position w as w ith th e S ecurity T ru st
Com pany of D etroit. He left th e re to
becom e associated w ith th e U nion
G uardian T ru s t Com pany, w here he
w as successively a ssista n t secretary,
assistan t vice president, vice president,
secretary and tre a su re r, executive vice
p resid en t and president.
He will assum e his new d uties on or
about F e b ru a ry 1st.

Wartime Conference
A w artim e conference on tr u s t prob­
lem s will be held in New York, F e b ­
ru a ry 9 th -llth , u n d e r th e auspices of
th e T ru st Division, A m erican B ankers
Association, it w as announced by
Louis S. H eadley, p resid en t of th e divi­
sion. Mr. H eadley is vice p resid en t
of th e F irs t T ru s t C om pany of Saint
P aul S tate Bank, S aint Paul, M inne­
sota.
“T here w ill be five sessions of th e
conference devoted chiefly to problem s
w hich are created or m agnified in im ­
portan ce by th e w a r,” Mr. H eadley
stated. “T ru st in stitu tio n s have spe­
cial responsibilities here at hom e,” he
said. “T hey are serv in g m any depend­
ents w hose chief su p p o rt has been re ­
moved. T hey are serv in g m en w ith
p ro p e rty (and th e ir fam ilies) w ho are
in th e arm ed forces or in w ar w ork.
T ru st in stitu tio n s have a large p a rt to
play in p ro tectin g p ro p e rty and in p ro ­
viding secu rity on th e hom e front.
“M ethods of serv in g these people
b ette r u n d er difficult w ar conditions,
and th e larg er problem of p reserv in g
values in a tim e of w orld d isorder w ill
be th e them e of our conference,” Mr.
P o s it io n W a n te d : b y m a n w it h b o th
c i t y a n d c o u n tr y b a n k e x p e r ie n c e , c a ­
p a b le o f f illin g a n y p o s it io n .
A bove
d r a f t a g e . W r it e E . C. 0 . , c a r e N o r t h ­
w e ste r n B a n k er.


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

IO W A

NEWS

•-

H eadley asserted. An outline of th e
te n ta tiv e program follows:
T he opening address at th e first ses­
sion w ill be given by P resid en t Headley of th e T ru st Division, to be fol­
lowed by tw o speakers, to be an ­
nounced later. The second session
w ill featu re a ta lk by G ilbert T. Steph­
enson, director, T ru st R esearch, The
G raduate School of Banking, A m erican
B ankers A ssociation, and a panel dis­
cussion on w artim e personnel prob­
lem s u n d er th e direction of W illiam
Pow ers, director, C ustom er and P er­

—

sonnel Relations, A m erican B ankers
Association.
The th ird session w ill include talks
on new business program s for tru s t
in stitu tio n s, tru s t research activities,
and a special w ar featu re by m en in
th e arm ed forces. The fo u rth session
w ill be devoted exclusively to in v est­
m ent problem s and w ill include a
trust-econom ic panel, un d er th e direc­
tion of Dr. P aul F. Cadman, econom ist,
A m erican B ankers Association.
The fifth session w ill featu re an ad­
dress by Mayo S hattuck of th e Boston

IllH u[ IKn A ! ill111 nJimn Jmi ) J i
" ■

OTTUMWA,

if
Jl

IOWA

Member of Federal Reserve System
Statement of Condition as of Decem ber 31, 1942

RESO U R C ES
L o a n s an d D i s c o u n t s ..............................................................
B a n k B u ild in g .............................................................................
F u r n itu r e an d F ix t u r e s an d S a fe ty D e p o s it V a u lts .
O th e r R e a l E s t a t e ......................................................................
S to c k in F e d e r a l R e s e r v e B a n k .........................................
O v e r d r a fts .....................................................................................
U . S . B o n d s ...................................................... $2,784,285.00
M u n ic ip a l B o n d s ............................................ 1,681,360.52
O th e r M a r k e ta b le B o n d s ..............................
752,487.10
C a sh an d E x c h a n g e ....................................... 3,565,494.78

$ 2,026,568.91
105,000.00
23,933.64
7,000.00
15,000.00
3,123.87

8,783,627.40
$10,964,253.82

L IA B IL IT IE S
C a p ita l ( C o m m o n ) .................................................................
S u r p lu s ............................................................................................
U n d iv id e d
P r o fits an d R e s e r v e s .........................................
D iv id e n d P a y a b le Jan . 2, 1 9 4 3 ............................................
D e p o s it s
.......................................................................

$

300,000.00
200,000.00
127,492.86
12,000.00
10,324,760.96

$10,964,253.82

O F FIC E R S
FR A N K VON SCHRADER. Chairman of Board and President
H. L. POLLARD, V ice President
W. C. M ILLER, A ssistant Cashier
R. W. FU N K , V ice President
FRED DIMMITT, A ssistant Cashier
MAX VON SCHRADER, Cashier
FRANK M. POLLARD, A sst. Cashier
C. P . GLENN, A ssistant Cashier
C. G. MERRILL, Trust Officer
M em ber F ederal D e p o sit Insurance Corporation

Northwestern Banker

January 19b3

72

-•
Bar, well know n in tr u s t circles, and
a ta x panel u n d er th e direction of
Charles H. M ylander, vice p resid en t
and tru s t officer, H u n tin g to n N ational
Bank, Columbus, Ohio.
The concluding session will be a
luncheon on T hursday, F e b ru a ry 11th,
ten d ered to v isitin g delegates th ro u g h
th e courtesy of th e New York C learing
House A ssociation. The b an q u et has
been canceled because of th e w ar. All
sessions w ill be held at The W aldorfA storia in N ew York.

Investment Bankers
Look Ahead
“The first responsibility of th e in ­
v estm en t ban k in g business in 1943 w ill

IOWA

NEWS

continue to be financing V ictory,” says
Ja y N. W hipple, Bacon, W hipple &
Company, Chicago, president, In v est­
m ent B ankers A ssociation of America.
“W hile co n trib u tin g every th in g pos­
sible to th is job, it w ill also be con­
cerned w ith its own su rvival as an
im p o rtan t elem ent of a free en terp rise
system w hich m u st survive th e w ar if
we are to have a really victorious
peace. W ithout free capital m arkets
th e re can be no free en terp rise system ,
since in d u stry w ould th en be obliged
to obtain its capital from th e govern­
m ent and th a t w ould inevitably lead
to governm ent ow nership.
“T he postw ar capital m ark et m ust
be capable of supplying all of th e capi­
ta l th a t w ill be needed to reh abilitate

I o w a ’s O ld e s t B a n k
Extends To All

Its S in c e r e W e ll W is h e s f o r 1 9 4 3
Remember the War and Its Financing
Is Our Number ONE Job.
Sell War Bonds to Every Investor

Council Bluffs Savings Bank
Council Bluffs, Iowa
B. A. GRONSTAL, President

First Trust and Savings Bank
N orth w est C orner T h ird and B rady Streets
D A V E N P O R T , IO W A

Condition on Decem ber 31, 1942
R ESO U RCES
Loans and Discounts......................... $2 2 9 8 ,2 6 7 .8 9
Banking H o u s e .................................
5 1 ,1 0 0 .0 0
1 1 ,2 5 1 .8 0
Furniture and F ix tu re s...................
U. S. Government
Bonds ..............$ 8 5 9 ,3 9 5 .4 2
municipal Bonds9 3 ,2 9 7 .0 1
Other Bonds. . . .
1 8 6 8 9 7 ,3 8
Cash and Due from
B a n k s ................. 1 ,6 8 4 1 5 3 .3 6
2 ,8 2 3 ,7 4 3 .1 7
Other A s s e t s .......................................
3 ,6 7 8 .5 0
Overdrafts ............................................
1 1 1 .6 2
Total

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

$ 5 ,1 8 8 1 5 2 .9 8

L IA B IL IT IE S
Capital ................... $ 1 3 5 ,0 0 0 .0 0
S u r p lu s ...................
1 0 0 ,0 0 0 .0 0
Undivided Profits
and Reserves. . .
30 3 9 5 .2 5 $
2 6 5 ,3 9 5 .2 5
Trust Funds . . . .
1 0 2 ,5 6 6 .2 5
D e p o s it s ................ 4 ,7 8 6 ,6 5 4 .9 4
4 ,8 8 9 2 2 1 .1 9
3 3 ,5 3 6 .5 4
Unearned Interest ............................

Total

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

$ 5 ,1 8 8 1 5 2 .9 8

Geo. M. Bechtel, President
R. O. Byerrum, Executive Vice President
H. R. Bechtel, Vice President
F. A. Johnson, Cashier and Trust Officer
Louis Martin, Assistant Cashier
W. C. Siddle, Assistant Trust Officer
Member of the Federal Deposit Insurance Corporation

Northwestern Banker

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

January 19^3

•—
ind u strial properties and to co n v ert
some of th e w ar plants to th e produc­
tion of goods for civilian use.
“C apital m ust be provided th ro u g h
free p riv ate m ark ets to clear converted
properties of obligations to th e govern­
m ent and its agencies w hich have fu r­
nished w artim e em ergency capital for
th e construction of p lan ts regardlessof th e ir economic usefulness afte r th e
w ar.
“New capital w ill be needed to de­
velop com m ercially th e in n u m erab le
new products w hich cannot be su p ­
plied th e general public u n til th e m ore
u rg en t business of w ar is finished.
“C onsequently in v estm en t b an king
has a definite responsibility to see th a t
th e m achinery of th e p riv ate capital
m ark et is in position to function effi­
ciently no tw ith stan d in g th e heavy de­
pletion of its personnel th ro u g h loss
of m en to th e m ilitary services and
w ar w ork.
“One concrete m eans of doing this is
to elim inate every th in g th a t needless­
ly ham pers its sm ooth operation. In
this the business is now gettin g th e
active cooperation of num erous reg u ­
latory au th o rities un d er w hich it oper­
ates.
“W ithin th e last year th ere w ere tw o
o u tstanding instances of cooperation
am ong th e State Securities Commis­
sioners to relieve dealers in securities
of useless duplication of efforts in
qualifying u n d er th e law s of th e v a ri­
ous states and in reg isterin g new secu­
rities issues un d er th e state laws.
“As th e year ended the SEC an ­
nounced a series of new rulings w hich
distinctly sim plify th e procedure it has
previously req uired in th e reg istratio n
w ith it of new issues of securities, and
m ade com pliance w ith its regulations
easier in o ther respects. This w ill
m ean a considerable econom y in legal
and accounting fees and o ther ex­
penses of th e business w ith o u t in any
w ay lessening th e protection of th e
investing public.
“It is anticipated th a t an even m ore
im p o rtan t step in this direction w ill
come early in th e new session of Con­
gress, w hen it is expected th a t a bill
of am endm ents to sim plify th e law s
u n d er w hich th e SEC operates w ill be
introduced. The Commission and re p ­
resen tativ es of th e business devoted
m ore th a n a year to conferences and
hearings before th e In te rsta te and
F oreign Commerce Com m ittee of the
H ouse on these am endm ents w hich are
now in th e hands of a sub-com m ittee.
“D espite th e fact th a t Congress has
been occupied w ith w ar m easures, it
should be possible for it to devote the

73

.
necessary a tte n tio n to th is bill, highly
essential as it is to helping p riv ate
financing of w ar in d u stries, and to
g ettin g th e m ach in ery of p riv ate fi­
nance p rep ared to m eet th e dem ands
of po stw ar co n stru ctio n .”

"Most Successful"
The larg est o u tp o u rin g of funds ever
recorded in any g o v ern m en t effort to
borrow m oney stam ped th e Decem ber
V ictory drive of th e U nited States
T rea su ry as th e m ost successful in h is­
tory. A total of $12,906,000,000 w as
raised d u rin g th e calendar m onth of
Decem ber, S ecretary of th e T reasu ry
H en ry M orgenthau, Jr., announced.
In fact, th e en tire subscriptions al­
lotted w ill probably exceed $13,000,000,000', as su b scriptions postm arked
D ecem ber 31st w ere not included. The
Seventh F ed eral R eserve D istrict total
w as $1,738,592,200 of w hich $873,676,000
w as supplied by com m ercial b an k s and
$864,916,000 by non-bank p u rch asers of
securities.
C. S. Young, p resid en t of th e F ed eral
R eserve B ank and ch airm an of th e
Seventh D istrict V ictory F u n d Com­
m ittee, stated th a t th e re su lt w as ob­
tained by a trem end o u s am o u n t of in ­
tellig en t h ard w o rk by th e m em bers
of th e V ictory F u n d organization, and
th e generous su p p o rt of th e press.
S ecretary M orgenthau, in ann o u n c­
ing th e n atio n al totals, stated : “I
should like to express to all m em bers
of th e V ictory F u n d organization m y
w arm p ersonal th a n k s for th e splendid
assistance re n d ered by all of you to th e
T rea su ry in th e successful Decem ber
drive. Y our e a rn e st and able response
to th is call of y o u r co u n try is an in ­
spirin g exam ple for everyone on th e
hom e fro n t.”

IOWA

NEWS

.

are new and relatively u n train ed
w orkers.
T he executive council of th e In sti­
tu te is composed of fifteen m em bers,
tw elve of w hom are elected executive
councilm en for th ree year term s to
re p re sen t th e 400 ch ap ters and study
groups of th e In stitu te in various
sections of th e country. The In sti­
tu te ’s president, vice president, and
im m ediate p ast p resid en t are th e
o th er th ree council m em bers.
M em bers of th e Council are: P resi­
dent, D avid E. Simms, Salt Lake City
B ranch, F ed eral R eserve B ank of San
F rancisco; vice president, David L.

Colby, B oatm en’s N ational Bank, St.
Louis; im m ediate p ast president,
George T. Newell, M anufacturers
T ru st Company, New Y ork City; other
m em bers, P. A. Doyle, C entral Bank,
Oakland, California; C. E dgar Jo h n ­
son, The F irst N ational B ank of Chi­
cago, Chicago, Illinois; W illiam C. Pitner, A m erican T ru st & B anking Com­
pany, Chattanooga, Tennessee; W il­
liam C. W ay, C entral N ational B ank
of Cleveland, Cleveland, Ohio; P ierre
N. H auser, F irs t W isconsin N ational
Bank, M ilwaukee, W isconsin; V ictor
H. Lloyd, The C harleston N ational
Bank, Charleston, W est V irginia;

Executive Council to Meet
W artim e personnel problem s of
banks w ill be am ong th e principal
considerations of th e an n u al m id­
w in te r m eeting of th e executive coun­
cil of th e A m erican In stitu te of B an k ­
ing, to be held J a n u a ry 18-19, in Peoria,
Illinois, it is announced by David E.
Simms, p resid en t of th e A. I. B. The
In stitu te is th e educational section of
th e A m erican B ankers Association.
D iscussions of c u rre n t problem s and
fu tu re activities of th e In stitu te w hich
have been influenced to a large degree
by th e w ar, w ill co n stitu te th e agenda
of th e m eeting. P a rtic u la r em phasis
w ill be placed on th e unpreced en ted
tu rn o v e r in b an k p ersonnel caused by
th e w ar, according to Mr. Simms. A t
least one-third of th e 290,000 b an k
staff m em bers th ro u g h o u t th e co u n try
Northwestern Banker

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

January 19^3

74

•

Twenty-four
Y ears of

Hawkeye Mutual Hail
Insurance Association
Carver Bldg.

Fort Dodge, Iowa

M ERCH A N TS
MUTUAL

BONDING
COMPANY
In corp orated 1933

Home Office
V ALLEY BANK BUILDING

D es M oin es, Iow a

®

•

T h is is Iow a’s o ld est surety com pany.
A p ro g ressiv e com p any w itli ex p eri­
en ced , co n serv a tive m anagem en t. W e
are p rou d o f our h u n dred and fifty
b ank agen ts in Iow a.
T o b e the ex clu siv e rep resen tative of
th is com p any is an asset to your bank.

•

•

W rite to

E. H . W A R N E R
Secretary and Manager

^[^Vz±±[incj ¿ S ezu -í c e i
C o u n s e l

on

B o n k

D R WESSLING, p r e s i d e n t

Northwestern Banker

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

January 19!i3

IOWA

NEWS

•

George E. Powell, T raders Gate City
N ational Bank, K ansas City M issouri;
David T. Scott, The F irst N ational
B ank of Boston, Boston, M assachu­
setts; George J. Greenwood, Jr., The
B ank of California N ational Associa­
tion, P ortland, Oregon; H erm an W.
Kilman,, F ed eral R eserve B ank of
Dallas, Dallas, Texas; W alton L.
Sanderson, H am ilton N ational Bank,
W ashington, D. C.; E v e re tt C. Steven­
son, The F irs t N ational Bank, Bound
Brook, New Jersey.
Dr. W illiam A. Irw in, A. I. B. n a ­
tional educational director, Floyd W.
L arson, national secretary, and R obert
D. H am m er, a ssistan t to th e secretary,
all of New York, also w ill attend.
W. L in n H em ingw ay, presid en t of
th e A m erican B ankers Association,
and presid en t of the M ercantile Com­
m erce B ank and T ru st Company, St.
Louis, and Dr. H arold Stonier, ex­
ecutive m anager of th e A m erican
B ankers A ssociation, New York, w ill
be present.
M eetings of com m ittees composed
of executive council m em bers w ill be
held on Sunday, Ja n u a ry 17th. These
com m ittees include, budget, ch ap ter
ad m instration, educational advisory,
nom inating and tran sp o rtatio n .

Federal Reserve Promotions
At the an n u al m eeting of th e board
of directors of the F ederal R eserve
B ank of Chicago, W. W. T u rn e r was
prom oted from a ssistan t cashier to
a ssistan t vice president. F. C. C arroll
and C. T. Laibly w ere appointed as­
sista n t cashiers, and P aul C. Hodge,
assistan t counsel w as appointed assist­
a n t counsel and a ssistan t secretary.
Mr. T u rn e r has been w ith th e bank
since A ugust 1, 1918, and has held im ­
p o rta n t positions in practically every
d ep artm en t in th e bank.
Mr. C arroll has been w ith th e F ed ­
eral R eserve B ank of Chicago since
A ugust 6, 1932. P rio r to his election
as a ssistan t cashier, he w as supervisor
of discounts.
Mr. Laibly started w ith the bank
Ju ly 10, 1918. F o r several years he
w as an exam iner for th e F ederal Re­
serve B ank of Chicago, and m ore re ­
cently has been m anager of th e con­
su m er credit division, w hich is charged
w ith th e adm in istratio n of R egulation
W. At the presen t tim e he is the
21st yea r plann ing a d v e rtisin g program s
for banks and tru st com panies .
W rite for Program K e y e d to W ar T im es.

P u b l i c

R e l a t i o n s

¿z A /[o in z ± , ü tovercl

officer in charge of th e divisions of
the fiscal agency departm ent, w hich
are located at 120 South La Salle
Street, Chicago, Illinois.

Chase National New York
The statem en t of th e Chase N ational
B ank for D ecem ber 31, 1942, w as m ade
public Ja n u a ry 5, 1943. The deposits
of th e ban k on th a t date w ere $4,291,467,000', the largest deposit figure y et
reported by th e bank, w hich com pares
w ith $3,628,466,000 on Septem ber 30,
1942, and $3,534,967,000 on Decem ber
31, 1941.
T otal resources am ounted to $4,569.496.000 com pared w ith $3,899,956,000 on Septem ber 30, 1942 and $3,811,803.000
on D ecem ber 31, 1941; cash in
th e b a n k ’s v au lts and on deposit w ith
th e F ederal R eserve B ank and o th er
banks, $1,132,553,000, com pared w ith
$945,679,000 and $1,248,516,000 on th e
respective
dates;
in v estm en ts
in
U nited States governm ent securities.
$2,327,748,000 com pared w ith $1,796,736.000 and $1,364,847,000; loans and
discounts, $786,057,000 com pared w ith
$808,540,000 and $802,221,000.
On D ecem ber 31, 1942 th e capital of
th e b ank w as $100',270,000 and th e su r­
plus $100,270,000, both am ounts u n ­
changed. A fter declaration on Decem­
ber 23d of a sem i-annual dividend to
be paid on Decem ber 31st am ounting
to $5,180,000, th e undivided profits ac­
count on D ecem ber 31st am ounted to
$45,049,000. T his am ount com pares
w ith $44,109,000 on Septem ber 30,
1942 and $40,370,000 on December 31,
1941.

Forms Simplified
In line w ith the program of the
bank m anagem ent com m ission of th e
A m erican B ankers A ssociation to pro­
m ote g reater standardization and sim ­
plification of banking and procedure,
a special com m ittee of th e com m ission
has been w orking w ith th e th ree fed­
eral bank supervisory agencies for th e
past several m onths on a project di­
rected tow ard th e adoption of a u n i­
form rep o rt of earnings and dividends
and a simplified rep o rt of condition.
The th ree federal agencies have re ­
cently agreed on a shortened, sim pli­
fied and uniform call rep o rt form and
a uniform earnings and dividend re ­
port. The earnings and dividend form
agreed upon by the F ederal Deposit
Insu ran ce Corporation, th e C om ptrol­
ler of the Currency, and the Board of
G overnors of th e F ederal R eserve
system w ill be used in obtaining re ­
ports covering 1942.
A greem ent having been reached as

75

The eyes of a ll
America are upon
the U nited States
Treasury Roll of
Honor appearing
in the "Payroll
Savings N ews.”
For copy write
W ar Savings Staff,
Treasury Depart­
ment,
Washing­
ton, D. C.

AS of today, more than 20,000 firms of
jfJL all sizes have reached the “Honor
Roll” goal of at least 10% of the gross
payroll in War Bonds. This is a glorious
testimony to the voluntary American way
of facing emergencies.

H O W TO
“ T O P T H A T 1 0 % BY N EW Y E A R ’S ”
Out of the 1 3 labor-management conferences sponsored by
the National Committee for Payroll Savings and conducted
by the Treasury Department throughout the Nation has
come this formula for reaching the 10% of gross payroll War
Bond objective:
1.

D e c i d e to g e t

10% .

It has been the Treasury experience wherever manage­
ment and labor have gotten together and decided the
job could be done, the job was done.
2.

G e t a c o m m i t t e e o f l a b o r a n d m a n a g e m e n t to w o r k

out

d e t a ils fo r s o lic ita tio n .

a. They, in turn, will appoint captain-leaders or chair­
men who will be responsible for actual solicitation of
no more than 10 workers.
b. A card should be prepared for each and every worker
with his name on it.
C. A n estimate should be made of the possible amount
each worker can set aside so that an ''over-aM"
of 10% is achieved. Some may not be able to set
aside 10% , others can save more.
3«

S e t a s i d e a d a t e to s t a r t t h e d r i v e .

But there is still more to be done. By
January 1st, 1943, the Treasury hopes to
raise participation from the present total
of around 20,000,000 employees investing
an average of 8% of earnings to over
3 0 ,0 0 0 ,0 0 0 investing an average of at least
10% of earnings in War Bonds.
You are urged to set your own sights
accordingly and to do all in your power to
start the new year on the Roll of Honor, to
give War Bonds for bonuses, and to pur­
chase up to the limit, both personally and
as a company, of Series F and G Bonds.
(Remember that the new limitation of pur­
chases of F and G Bonds in any one calen­
dar year has been increased from $ 5 0 ,0 0 0
to $100,000.)

Am T h e r e s h o u l d b e l i t t l e o r n o t i m e b e t w e e n t h e a n n o u n c e ­
m e n t o f t h e d r i v e a n d t h e d r i v e i t s e lf .

T I M E IS S H O R T .

The drive should last not over 1 week.
5. The opening of the drive may be through a talk, a rally,
or just a plain announcement in each department.
6 Schedule competition between departments; show
progress charts daily.
7 . Set as a goal the Treasury flag with a "T.“

.

p a t&

m

Our country is counting

on you to—

"TOP THAT 10%
BY NEW YEAR’S"

/B

War Savings Bonds
This space is a contribution to America’s A ll- O u t War Program by THE NORTHWESTERN BANKER

Northwestern Ranker

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Federal Reserve Bank of St. Louis

January 19^3

76

— •

IOWA

NEWS

•-

to th e adoption of th e new earnings form ) are obtainable at the office of
and dividend rep o rt by th e federal the b ank m anagem ent com m ission of
agencies and by m ost state banking th e A m erican B ankers A ssociation in
departm ents, an effort w ill be m ade New York City.
to secure its use in th e fu tu re by
W ith reg ard to the rep o rt of condi­
oth er state supervisors. Sim ilar ef­ tion form , th e face of th e rep o rt as to
forts will also be u n d ertak en as to assets, liabilities and capital accounts
th e new uniform call rep o rt form.
is essentially th e sam e as heretofore.
In the past, th e earnings and divi­ H ere th e big saving in tim e and effort
dend rep o rts to th e federal supervisory w ill be effected th ro u g h th e elim ina­
agencies have not been on a uniform
tion of a m ajority of th e su p p orting
and com parable basis. N ational banks schedules w hich w ere form erly in ­
and state banks w hich are m em bers cluded.
of th e F ed eral R eserve System have
rep o rted on form s quite sim ilar w hile Appointments Announced
state banks, not m em bers of th e sys­
A ppointm ent of 12 m em bers of th e
tem , have rep o rted on an o th er type of executive council of th e A m erican
form. W here the earnings and divi­ B ankers A ssociation, and four m em ­
dend rep o rts of state b ank supervisory bers of th e A ssociation’s a d m in istra­
agencies have differed from one or the tive com m ittee is announced by W. L.
o th er of th e federal forms, state banks H em ingw ay, p resid en t of the A m eri­
have been req uired to fill out one can B ankers Association, w ho is p resi­
form for th e state agency and an o th er den t of the M ercantile-Com m erce
for th e F ed eral R eserve or th e FDIC. B ank and T ru st Company, - St. Louis,
Inasm uch as th e new form has been M issouri.
adopted by th e federal agencies and
The executive council consists of
m ost of th e state banking departm ents, b ankers elected by A. B. A. m em bers
considerable duplication of w ork in in th e 48 states and th e D istrict of
filling out form s w ill be elim inated, Columbia, usually at th e tim e of th e ir
an im p o rtan t co ntribution to b ank state conventions, the officers of th e
o p eratin g efficiency in th e face of re ­ Association, the th ree im m ediate p ast
duced m anpow er u n d er w ar condi­ presidents, th e presidents and vice
tions.
presidents of th e A ssociation’s divi­
A t th e sam e tim e th e com m ittee sions and sections, chairm en of its
evolved a condensed form of c u rre n t com m issions, and 12 m em bers a t large
operatin g earnings rep o rt for th e use appointed by th e president. The 12
of b anks w hich m ay desire to rep o rt appointm ents announced by Mr. H em ­
earnings date to th eir shareholders ingw ay are as follows:
and others.
In form ation reg ard in g
H. Donald Campbell, president, The
operatin g resu lts is being requested Chase N ational Bank, New York, N. Y.;
increasingly of banks by tre a su re rs Zay B. Curtis, vice president, G uaranty
of large corporate depositors w ho sub­ T ru st Company, New York, N. Y.; Rob­
m it a v ariety of form s in m aking th e ir e rt B. Flem ing, president, The Riggs
requests. As a re su lt th ere has been N ational Bank, W ashington, D. C.; J.
a considerable dem and from banks H. F rost, president, F irs t N ational
for a form w hich can be used to pro­ Bank, San Antonio, Texas; H. H iter
vide th e desired inform ation and at the H arris, president, F irs t and M erchants
sam e tim e to b rin g about some degree N ational Bank, Richm ond, V irginia;
of u n ifo rm ity in its presentation.
H erb ert D. Ivey, president, Citizens
The condensed earnings and ex­ N ational T ru st and Savings Bank, Los
pense form includes provision for in ­ Angeles, California; H arold K ountze,
te re st on loans, and in terest on se­ president, The P ennsylvania Com pany
for Insu ran ces on Lives and G ranting
curities together w ith earnings from
o th er c u rre n t operations; also the p rin ­ A nnuities, Philadelphia, P ennsylvania;
cipal item s of expense, such as in te re st J. F. McRae, president, M erchants N a­
paid, salaries and wages, and other tional Bank, Mobile, Alabama; Jam es
c u rre n t operating expenses. T here is H. Penick, president, W. B. W orthen
also provided a reconcilem ent of su r­ Company, B ankers, L ittle Rock, A r­
plus and undivided profits for the kansas; Tom K. Sm ith, president, T he
period being reported. W hile th e con­ B oatm en’s N ational Bank, St. Louis,
densed form differs in some respects M issouri; Sam uel C. W augh, executive
from th e new form s used by the fed­ vice presid en t and tru s t officer, T he
F irs t T ru st Company, Lincoln, Ne­
eral and state b ank supervisory
agencies, it can be p repared easily braska.
from th e item s available on those
form s. Copies of the condensed form
New Book
(w ith th e suggested m ethod for its
P ublication of a booklet entitled
com pilation from th e new E and D “The Prudent-M an Rule for T ru st InNorthwestern Banker

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Federal Reserve Bank of St. Louis

January 19J3

77
v e stm e n t” is announced by th e T ru st
D ivision of th e A m erican B ankers A s­
sociation. It has been p rep ared in
response to w idespread in te re st in
th e “p ru d en t-m an ” stan d ard for tr u s ­
tees in th e in v estm en t of tr u s t funds.
The booklet is th e w o rk of th e com m it­
tee on fiduciary legislation of the
T ru st D ivision of th e A. B. A., w ith
th e assistance of Mayo A. Shattuck,
E squire, of th e M assachusetts bar.
T he booklet contains th e te x t of a
“Model P rudent-M an In v estm en t S tat­
u te ” p rep ared by Mr. S h attu ck and th e
com m ittee for use in those states
w h ere it is desired to change th e tru s t
in v estm en t sta tu te s to conform to th e
p rudent-m an or M assachusetts Rule
sta n d a rd for th e in v estm en t of tru s t
funds. It also contains rep o rts from
tr u s t m en reg ard in g th e tr u s t in v est­
m en t situ atio n in each of th e 48 states
and th e D istrict of Columbia, and com ­
m ents by Mr. S h attu ck on th e model
statu te.
In a forew ord, Louis S. Headley,
p resid en t of th e T ru st D ivision and
vice p resid en t of th e F irs t T ru st Com­
p an y of St. P aul S tate Bank, St. Paul,
M innesota, says: “th e extensive adop­
tion of th e sta n d a rd of p rudence in
recen t y ears by te sta to rs and atto rn ey s
in th e g ra n tin g of in v estm en t pow ers
has suggested to m any th a t th e M assa­
ch u setts R ule is b e tte r adapted to m od­
e rn conditions th a n any ru le b uilt
aro u n d form ulas or lists of authorized
investm ents. The model s ta tu te now
sub m itted has been p rep ared as a guide
for those legislatures w hich hold th is
view and w ish to em body it in th e ir
state law .”

"The Silent Saboteur"
The U nited States Secret Service,
w ith th e cooperation of th e Chase
N ational B ank, has opened an ex­
h ib it at 40 W est 49th S treet in R ocke­
feller Center, New York, to inform th e
public on th e detection and su p p res­
sion of counterfeiting. E n title d “The
Silent S aboteur,” th is exhibit also illus­
tra te s how co u n terfeitin g m ay be used
by our enem ies as a w eapon of w ar.
The exhibit opened w ith a preview ,
featu red by a broadcast over a n atio n ­
wide hookup of th e Red netw ork, w ith
W in th ro p W. A ldrich, ch airm an of the
board of th e Chase, F ra n k J. W ilson,
chief of th e Secret Service, and A lvin
W. Hall, head of th e B ureau of E n g ra v ­
ing and P rin tin g in W ashington, as
p articip an ts, w ith Low ell Thom as as
m aster of cerem onies. At th e preview
w ere guests from W ashington and
New York.
Public attendance, th e b an k reports,
has far exceeded expectations; 15,000
v isito rs w ere w elcom ed in th e first two
w eeks. T he daily average continues

B E F O R E T H E M IC R O P H O N E S A T T H E P R E V IE W
“ T H E S IL E N T S A B O T E U R ”
F ra n k J . W ilso n o f th e S e c ret S e rv ic e ; A lv in W . H a ll of th e B u re a u of E n ­
g ra v in g a n d P r in tin g ; W in th ro p W . A ld r ic h o f th e C hase, a n d L o w e ll T h om as.

high and, as a resu lt of such un u su al
in terest, Secret Service officials are
now planning to show the sam e exhibit
in o ther cities u n d er th e sponsorship
of leading banks.
E xam ples of counterfeit curren cy of
historic and contem porary in terest, as
well as invasion m oney now being

used, are effectively displayed behind
illum inated glass-front insets as th e
visitors move th ro u g h the colorful,
m odernistic display. H uge reproduc­
tions of genuine and counterfeit bills,
w ith th e differences made obvious by
enlargem ent, are a p a rt of th e deco­
rativ e scheme.

Andex Ob ¿Advertisers
A
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 ............. 28
A. C. A l l y n a n d C o m p a n y ................................. 33
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 Co. 54

u
B a n k o f A m e r i c a ..................................................... 46
B a n k e r s T r u s t C o m p a n y , D e s M o i n e s . . 59
5
B e r k o w i t z E n v e l o p e C o m p a n y ....................

C
C e n t r a l N a t i o n a l B a n k & T r u s t C o ..........
C h a s e N a t i o n a l B a n k ...........................................
C h e m i c a l B a n k & T r u s t C o ...........................
C i t y N a t i o n a l B a n k & T r u s t C o .................
C o m m e r c e T r u s t C o ...............................................
C o n tin en tal
Illin o is
N atio n al
B ank
& T r u s t C o ..............................................................
C o n tin e n tal N a tio n a l B an k , L in co ln . . . .
C o u n c i l B l u f f s S a v i n g ' s B a n k .......................

12
7
73
32
52
6
55
72

It

D a v e n p o r t , F . E ., & C o .................................... 55-6 1
D a v e n p o r t B a n k & T r u s t C o ......................... 63
D es M o in es B u ild in g , L o a n a n d S a v ­
i n g s A s s o c i a t i o n ................................................ 76
D r o v e r s N a t i o n a l B a n k ...................................... 62
E
E l m s H o t e l ................................................................. 35
E m p i r e N a t i o n a l B a n k & T r u s t C o .......... 40
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 ................. 76
F e d e ra l I n te rm e d ia te C red it B a n k s . . . .
F ir s t a n d A m erican N a tio n a l B ank,
D u l u t h ......................................................................
F i r s t N a t i o n a l B a n k , C e d a r F a l l s ..........
F i r s t N a t i o n a l B a n k , C h i c a g o .......................
F i r s t N a t i o n a l B a n k , St . L o u i s ....................
F i r s t N a t i o n a l B a n k , S t. P a u l ....................
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 ...............
F i r s t N a t i o n a l B a n k & T r u s t C o ...............
F ir s t T r u s t & S av in g s B ank, D a v en p o rt
F i r s t W i s c o n s i n N a t i o n a l B a n k ..................
F i s h e r C o m p a n y .....................................................

34
42
64
30
70
41
61
36
72
66
48

II

H a w k e y e M u tu a l H a il In s u r a n c e C o ...
H o m e I n s u r a n c e C o m p a n y ..............................

74
4

I
I o 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 .................... 60
I r v i n g T r u s t C o m p a n y ......................................
8

Koch

K
B r o t h e r s .......................................................... 76

L,
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 an k , C h i c a g o . .. .
L i v e S t o c k N a t i o n a l B a n k , O m a h a ..........
L ive S to c k N a tio n a l B a n k , S ioux C ity . .

M
M e r c a n t i l e C o m m e r c e B a n k & T r u s t Co.
M erch a n ts M u tu al B o n d in g C o m p a n y ..
M e r c h a n t s N a t i o n a l B a n k ..............................
M i d l a n d N a t i o n a l B a n k a n d T r u s t Co.
M i n n e s o t a C o m m e r c i a l M e n ’s A s s n ..........
M ississip p i V a lle y T r u s t C o m p a n y . . . .

69
74
2
38
39
65

N
N e w Y o r k T r u s t C o m p a n y ............................
N o r t h e r n T r u s t C o m p a n y .................................
N o rth w e st S ecu rity N a tio n al B a n k . . . .
N o rth w e s te r n N a tio n a l Life In s u ra n c e
C o m p a n y ..........................................................‘ •

25
58
47
29

O
O m a h a N a t i o n a l B a n k ........................................

21

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 .........................
P u b l i c N a t i o n a l B a n k & T r u s t C o ............

24.
28

S
S t. L o u i s T e r m i n a l W a r e h o u s e C o .......... 23
S c a r b o r o u g h a n d C o m p a n y ................... 2 7 - 3 5 - 5 7
S e c u r i t y N a t i o n a l B a n k , S i o u x C i t y . . . . 60
S t o c k Y a r d s N a t i o n a l B a n k , St . P a u l . . 43
U
U n i o n B a n k a n d T r u s t C o m p a n y ...............
U n ited S ta te s N a tio n a l B ank, O m a h a ..
U nited S ta te s T re a s u ry D e p a r tm e n t..

71
50
75

V
V a l l e y S a v i n g s B a n k ........................................... 79
W
W a n t A d ......................................................................
C h a r l e s E . W a l t e r s C o m p a n y ....................
“W a t e r l o o S a v i n g s B a n k ...................................
J a y A. W e l c h ............................................................
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 ..........

Northwestern Banker

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

3
76
67
56
44

71
54
68
76
74
26

January 19J3

78

IN THE DIRECTORS' ROOM
Colored Evidence

But Intimate

Miss Sophia Jones trip p ed into th e
law yer’s office.
“Cain’t ah sue d at no good R astus
Smiff fo’ som epin’ m ister? He p ro m ­
ised to m a rry me, dat he did, a n ’ yestiddy he done ’loped w ith an o th er gal.”
“Prom ised to m a rry you, eh?” m used
th e law yer. “Well, have you an y th in g
in black and w hite to show for it? ”
“No, su h ,” replied Sophia. “Je s’
black is all.”

N ew lyw eds (having tipped th e p o r­
te r generously to keep th e ir m arriage
s e c re t): “Did you tell those people in
th e pullm an we w ere ju st m arried?
T hey look at us stran g ely .”
P o rter: “L an sakes, boss, w hen th ey
asked me is you ju st m arried, I said
no; th ey ju st good friends th a t’s all.”

Alibi

A n y Salmon?

W ife: “W hy do you alw ays go into
th e garden w hen I sing? Don’t you
like to h ear m e?”
H usband: “It isn ’t th at. I ju st w an t
th e neighbors to see I am not beating
you.”

“Give me a chicken salad,” said a
stu d en t in th e Co-op.
“Do you w an t th e 40-cent one or th e
50-cent one?” asked th e w aitress.
“W h a t’s th e difference?”
“The 40ment ones are m ade of veal
and pork, and th e 50-cent ones are
m ade of tu n a .”

F a rm e r (after lightning stru ck the
tree u n d er w hich his h ired m an had
sought sh elter): “How close did it
come to you Sam ?”
H ired Man (still trem b lin g ): “I—I—
d-d-dunno, b u t it lit m y pipe.”

Tit for Tat
T enant: “ I w ish you w ould speak to
th e people upstairs. T his m orning at
th ree o’clock th e y w ere ju m p in g up
and dow n and b anging th e floor. I
w on’t stan d for such d istu rb an ces.”
L andlord: “How did you h appen to
h ear them at th a t tim e of n ig h t? ”
T en an t: “I w as practicin g on m y
saxophone.”

Too Late
Judge: “Sorry, b u t I can ’t issue a
license to y o u r g ran d d au g h ter; sh e’s
only 15 and too young.”
Old G ranny: “Law dy, m ister jedge,
w at we gw ina do; sh e’s ol’ ’n u f to do
w at sh e’s done did.”

Nice K i t ty
Two w om en w ere discussing a m u­
tu al acquaintance.
“She has a v ery m agnetic p erso n ­
ality,” said one wom an.
“She ought to have,” replied th e
o ther wom an. “E v e ry stitch she has
on is charged.”

In the Vicinity

Saves Wear and Tear
“Hey, w h at tim e is it by your
w atch?”
“Q u arter to.”
“Q u arter to w h at?”
“I d o n’t know —tim es got so bad I
h ad to lay off one of th e hands.”

Right on l ime
Jack: “W h at are you doing for
lunch today?”
Joe: “I’ve got to help m y little cousin
buy a C hristm as tre e .”
Jack: “A bit early, is n ’t she?”
Joe: “Oh, no. She w orks in a de­
fense plant, and th e y ’re tw o m onths
ahead of schedule.

A fancy dress dance w as in progress
and th e conversation w as betw een two
w om en sittin g in a corner.
“Mrs. Sm ythe looks ra th e r upset,
don’t you th in k ? ” said th e first.
“I should th in k she does,” replied
th e other. • “You see, she cam e as a
H aw aiian beauty, w ith g rass sk irts and
all—and th ey aw arded h e r first prize
in th e hum orous section as “The Old
T hatched C ottage.”
Northwestern Banker

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

January 1943

Ah, Yes
Lady: “You look stro n g enough to
w ork and earn your living.”
Tram p: “Yes, m adam , I know it,
and you are beautiful enough to go on
th e stage, b u t we both p refer th e quiet,
happy hom e life.”

Over-night Magic
C alifornian: “Now in m y state w e
can grow a tree th a t size in about a
year. How long did it tak e you to
grow th a t one?”
F loridian: “C an’t say for sure, b ut
it w asn ’t th ere yesterd ay .”

Cash No Object
Local Belle (flourishing a check for
h ospital from a visiting m ovie sta r):
“Look w h at he gave me. I t’s for $100.”
S ecretary: “Fine, b u t th e re ’s no sig­
n a tu re h ere.”
Local Belle: “I know, I cut it out for
m y au tograph collection.”

H ere’s to Death
Upset

Snu bbed
A young couple v ery m uch in love
b u t ra th e r tem p eram en tal w orked in
the sam e tool plant. One day th e
fellow got caught in one of those r e ­
volving m achines and w hirled th ro u g h
th e air as it w en t around. His girl
ru sh ed over, sw itched th e th in g off and
grabbed him in h er arm s as he fell to
th e floor. “Oh, George,” she begged.
“Speak to m e.”
The fellow looked up groggily. “W hy
should I?” he asked. “I passed you
six tim es and you nev er spoke to m e.”

E n q u irer: “Do you believe in th e
su rv iv al of th e fittest?”
O ther Man: “No, I don’t believe in
th e su rvival of anybody. I ’m an u n ­
d e rta k e r.”

Some Give-away
“W ho gave th e bride aw ay?”
“H er little brother, Willie. He stood
rig h t up in th e m iddle of th e cerem ony
and yelled, ‘H u rray , Louise, you’ve got
him at last’.”

Start Spinning
“I rep resen t th e M ountain Wool
Company, m a’am. W ould you be in te r­
ested in some coarse y arn s?”
“Gosh, yes, tell me a couple.”

Quite the Reverse
Casey and M urphy w ere adm iring a
big London building.
“I t ’s su rp risin ’,” said Casey, w ith a
know ing air, “how m o rtar binds all
those hu n d red s of bricks to g eth er.”
M urphy gave his com panion a su p er­
cilious sneer.
“W hinever are ye goin’ to learn a
bit of sense, Casey,” he replied.
“Sure and w h atev er d’ye m ean?”
queried Casey.
“B ricks a re n ’t kept to gether by m or­
ta r,” M urphy explained. “M ortar keeps
them ap a rt.”

S T A T E M E N T OF C O N D I T I O N
•7 ^ e s o

December 31, 1942

urces

$3,487,500.86
Loans and Discounts__
15,000.00
Other Bonds and Stocks.
323.32
O verdrafts___________
12,552.60
Customers Liability on Acceptances__________
Government Obligations, Direct
and Fully Guaranteed________ $1,523,900.00
Municipal Bonds_______________
149,391.12
Cash and Due from Banks.
3,084,233.58 4,757,524.70
$8,272,901.48

/a b H i t t e s
Capital Stock—Common
Surplus ______ _______
Undivided Profits
R eserves_______
Unearned Discount ________
Bank Liability on Acceptances.
Deposits __________________

Complete
200, 000.00
200 , 000.00
77,621.51
61,634.46
27,476.69
12,552.60
_ 7,693,616.22
.$

$8,272,901.48

facilities
for your
Des Moines
business

ALLEY
AVING
BANK

DES MOINES
Member Federal Deposit Insurance Corporation


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

F O R the coming fiscal year the Federal Government's W ar­
time budget requirements are estimated at one hundred billion
dollars or more . . . a sum that approximates the total of the
National debt outstanding today.
Success in the momentous W ar financing program that
lies ahead calls for the assistance of Banks and Bankers to the
limit of their ability, experience and resources. Such assistance
W ILL be forthcoming. For Banks and Bankers recognize this
as their opportunity . . . their obligation . . . to help hasten the
day of Victory and the restoration of Peace.
Let's resolve, therefore, as we go forward in 1943 to work
harder at our jobs and do them better . . . to keep chins up
here on the home front . . . to gladly make sacrifices . . . to
give all-out support to Uncle Sam's W ar effort in every way.

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

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