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JANUARY 1945 . OUR 50th YEAR J. F. P ET ER S Newly appointed Director of Banking for Nebraska. See Page 57. BUY UNITED STATES WAR BONDS AND STAMPS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKING OUTLOOK FOR 1945 Page 17 ¿« K As W e E nter 194S -¿ « f c ^ ^ M odern equipm ent, ex p erien ced p erson n el an d a sincere desire to render efficient service, insure the very best of correspondent service at the M erchants N ational Bank. <£ ¿ A s w e enter 1945 w e exten d a cordial invitation to all w h o can m ake u se of the friendly cooperation at this 64-year old bank. «t A CEDAR R A P ID S BA N K ^ r— ----CEOAR RAPI DS SERVICING A LL IOWA* -j1 THE <- M ERCHANTS •% ■*<■-<< ■ C ¿ + ■< << 4 s i p s Wi f t'f .l |jywii Wi ■m O F F I C E R S 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. Selden, 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. Kearney, A sst. Cashier S tanley J. Mohrbacher, Asst. Cashier E. B. Zbanek , Building Manager er L“ NATIONAL BANK V l6 h,f, *' Cedar R apids Iow a Member Federal Deposit Insurance Corporation Northwestern Banker, published monthly by the De Puy Publishing Company, at 527 Seventh St., Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 The V alu e of PRECAUTION! Every person with a grain of common sense knows that an automobile can't argue the right of w ay with a locomotive. Yet, despite safety gates, warning bells and watchmen, there are many serious accidents each year due to the collision of motor vehicles and trains.» » No one can estimate what this tragic toll would figure did the railroads of America not take every precaution to safeguard grade cross ings. » » Nor is it possible to compute the number of raised and altered checks —were While One Enemy Remains Our lob Is N OT Done! there no such thing as saiety paper. » » For the "check artist" is still with us. And bankers everywhere will tell you that, lacking this highly effective means of curbing his activities, their problems would be vastly m ultiplied —and public acceptance of checks as m oney jeopardized. That is why so many of America's leading banks and busin ess organizations specify "LaMonte"—Standard of Saiety in check pro tection for nearly three quarters of a century. For samples of La Monte Saiety Paper see your Lithographer or Printer —or write us direct. LA MONTE GEORGE LA MONTE & SON The W a v y L in e s a r e a La M o n te T ra d e M a r k OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PAPER NUTLEY, NEW JERSEY W e su pply m any banks and business organizations w ith their own individually identified Saiety Paper. The issuing organization's Trade-Mark is in the paper itself and appears on both the front and back of the check. Such individualized paper provides maximum protection against counterfeiting —saves Banks sorting time —helps prevent errors. Northwestern Banker January 19b5 4 THE CH ASE N A T IO N A L BANK OF THE CITY OF NEW YORK STATEMENT OF CONDITION, DECEMBER 30, 1944 R E SO U R C E S Cash and D ue from B a n k s ........................................... $ U. S. G overnm ent O b ligation s, direct and fully g u a r a n t e e d .................................................................... State and M unicipal S e c u r itie s..................................... O ther S e c u r i t i e s .............................................................. Loans, D iscounts and Bankers’ A cceptances . . Accrued Interest R e c e i v a b l e ..................................... M ortgages .......................................................................... Custom ers’ A cceptance L i a b i l i t y ............................... Stock o f Federal Reserve B an k ..................................... B anking H o u s e s .............................................................. O ther Real E s t a te .............................................................. O ther A s s e t s .................................................................... 9 0 0 ,6 8 9 ,4 1 0 .7 2 2 ,8 9 9 ,8 3 4 ,0 6 1 .1 6 1 0 8 ,6 0 5 ,8 8 9 -4 9 1 3 5 ,5 7 4 ,8 9 6 .7 4 1 ,0 4 1 ,0 4 6 ,4 8 4 .2 3 1 1 ,4 7 0 ,8 4 7 .9 5 6 ,5 6 6 ,4 3 9 -6 6 6 ,6 5 6 ,2 4 6 .6 1 7 ,0 5 0 ,0 0 0 .0 0 3 4 ,9 4 1 ,7 9 6 .7 6 3 ,9 8 3 ,9 6 3 .0 7 3,5 8 3 ,9 1 9 -2 7 $ 5 ,1 6 0 ,0 0 3 ,9 5 5.66 L IA B IL IT IE S Capital Funds: Capital S t o c k .........................$ 1 1 1 ,0 0 0 ,0 0 0 .0 0 S u r p l u s ..................................... 1 2 4 ,0 0 0 ,0 0 0 .0 0 U ndivided Profits . . . . 4 9 ,8 0 0 ,3 8 5 .6 8 $ D ividend Payable February 1, 1945 ......................... Reserve for C o n tin g e n c ie s ........................................... Reserve for T axes, Interest, etc..................................... D e p o s its ................................................................................ A cceptances O utstanding . . $ 1 1 ,5 6 3 ,9 1 2 .2 7 Less A m ount in P ortfolio . 4 ,3 1 5 ,8 2 8 .1 2 Liability as Endorser on Acceptances and Foreign B i l l s ....................................................... O ther L i a b i l i t i e s .............................................................. 2 8 4 ,8 0 0 ,3 8 5 .6 8 5 ,1 8 0 ,0 0 0 .0 0 1 1 ,3 3 8 ,1 3 7 .4 4 1 1 ,2 4 0 ,8 2 7 .6 4 4 ,8 3 5 ,2 1 9 ,2 5 7 .9 3 7 ,2 4 8 ,0 8 4 .1 5 1 2 4 ,3 3 2 .7 2 4 ,8 5 2 ,9 3 0 .1 0 $ 5 ,1 6 0 ,0 0 3 ,9 5 5 .6 6 U nited States G overnm ent and o th er securities carried a t $1,265,557,440.00 are pledged to secure U. S. G overnm ent W ar Loan D eposits of $1,094,886,463-41 and o th er public funds and tru st deposits, and for oth er purposes as required or perm itted by law . M e m b e r F e d e r a l D e p o s it In su ra n ce C o r p o r a tio n Northwestern Ranker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 OUR 50th YEAR 5 Field Warehousing the Modern Method of Inventory Financing Som e of y o u r p re se n t custom ers . . . as well as o th ers w hose busin ess you w ould lik e to have . . . m ay find th e ir w o rk in g c a p ita l insufficient fo r th e ir needs. M anv have in v e n to rie s th a t offer sound o p p o rtu n itie s to you fo r W areh o u se R eceip ts L oans. O ur F ield W areh o u sin g Service enables you to m ake th o se loans against in v e n to rie s sto red rig h t on the b o rro w e r’s ow n prem ises. W areh o u se R eceipts m ake it possible fo r you to le n d in ex cess of op en -lin e c re d it lim its, safely an d p ro fitab ly . We are specialists in F ie ld W areh o u sin g . O u r ex p erien ce is lo n g . . . o u r re sp o n sib ility reco g n ized . Without obligation, our representative will call on request and explain how our Field Warehousing serv ice provides collateral on inventories on the owner's location . .. i§>t Jiaul terminal lülarefjouöe Co. ST. PAUL. MINN. — Iowa Office — — Other Offices — 515 Iowa-Des Moines National Bank Building DES MOINES TELEPHONE 2-1203 MINNEAPOLIS MILWAUKEE INDIANAPOLIS DETROIT CHICAGO NEW YORK BOSTON PHILADELPHIA PITTSBURGH SYRACUSE MEMPHIS ATLANTA CHARLOTTE ALBANY, GA. T. C. CANNON. DISTRICT MANAGER "The only company engaged in Field Warehousing with an office in Iowa" OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 19^5 6 I r v in g T C r u s t o m p a n y O N E WALL S T R E E T • N E W Y O R K Statement of Condition, December 31, 1944 ASSETS Cash and Due from B an ks................................................................................... U. S. Government Securities . . . . .......................................................... . Other Securities...................................................................................................... Stock in Federal Reserve B a n k ............................................................................ Loans and D iscounts............................................................................................... First Mortgages on Real E state............................................................................ Headquarters B uilding........................................................................................... Other Real E s t a te .................................................................................................. Liability of Customers for A ccep tan ces............................................................. Other A s s e t s .......................................................................................................... $212,081,10837 747,793,042.01 5,913,418.41 3,088,100.00 267,469,809.96 5,731,743.45 15,516,800.00 47,777.65 1,216,724.78 3,730,840.83 $1,262,589365.46 ¡à LIABILITIES Deposits ................................................. Official C h e c k s ...................................... Acceptances............................................. Less Amount in P o r t f o l io ................... Reserve for Taxes and Other Expenses Dividend payable January 2, 1945 . . Other Liabilities................... ... . . . . Capital S t o c k ......................................... Surplus and Undivided Profits . . . . $1,138,426,116.70 2,615,095.97 $1,141,041,212.67 $4,081,078.30 2,518,566.50 1,562,511.80 .....................................................................4,142,482.79 .....................................................................1,250,000.00 6 , 2 8 9 , 830.21 ......................................... $50,000,000.00 58,303,327.99 108,303,327.99 $1,262,589,365.46 > United States Government Securities are stated at amortized cost. Of these, $302,175,003.00 are pledged to secure* deposits of public monies and for other purposes required by law. Member Federal Deposit Insurance Corporation BOARD HARRY E. WARD Chairman of the Board O. L. ALEXANDER President Pocahontas Fuel Company Incorporated HENRY P. BRISTOL President Bristol-Myers Company OF D I R E C T O R S WILUAM N. ENSTROM President EDWARD H. CLARK Chairman of the Board Homestake Mining Company HAROLD A. HATCH Vice President Deering Milliken & Co., Inc. J. WHITNEY PETERSON Executive Vice President United Slates Tobacco Company JOHN F. DEGENER, Jr. C. A. Auffmordt & Co. ADAM K. LUKE Vice President and Treasurer West Virginia Pulp and Paper Company JACOB L. REISS President, International Tailoring Company WILLIAM K. DICK Chairman of the Board National Sugar Refining Company HIRAM A. MATHEWS Vice President FLETCHER W. ROCKWELL President, National Lead Company W. GIBSON CAREY, Jr. President The Yale & Tourne Mfg. Co, HENRY FLETCHER Fletcher & Brown WILLIAM SKINNER MICHAEL A. MORRISSEY President President The American News Company, Inc. William Skinner & Sons REID L. CARR President GEORGE F. GENTES Columbian Carbon Company Vice President AUGUSTUS G. PAINE Chairman of the Board New York & Pennsylvania Co. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 FRANCIS L. WHITMARSH President Francis H. Leggett & Company OUR 50th YEAR r > * p o % ¿ e n v t c e , Red Cross in the far-flung battle areas, but there As a rule, wounded m en talk very little. T hey’ve is something we can all do no matter where we learned to “take it.” Many live in a secret, silent are. We can hum bly share our blood . . . We can world of pain— but they kn o w . They know and divide our tim e . . . W e can give our m oney . . . are grateful. They remember the horrors of that W e can and m u st help. last battle . . . They remember the Red Cross Make an appointm ent at your nearest blood worker bending over them . . . the plasma . . . donor center to da y. . . Join the hosts of Am ericans Then, the hospital, with all their precious lives on the hom e front who are helping to make before them . . . Their gratitude for the innum er the Red Cross contribution in W orld War II able small, but vitally important comforts brought the greatest mass effort of m ercy the world to them by Red Cross N urse’s Aids and Gray has ever known . . . We must all deserve that Ladies is expressed by eyes grown bright “ thanks” of our fighting m en who have or a sim ple “thanks.” flflH given so m uch for us. Only a few of us can actively serve the ™ This is the tenth of a series of advertisements dedicated to the American Red Cross by T H E HOM E IN SU R A N C E COM PANY, NEW YO R K FIRE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . AUTOM OBILE . MARINE 8 C o n t in e n t a l I llin o is N ational B ank a n d T rust C ompany OF C H IC A G O Statem ent of Condition, December 30, 1944 RESO URC ES Cash and Due from B anks............................................................$ 502,196,051.50 United States Governm ent Obligations, Direct and Fully G uaranteed.................................................... 1,638,809,259.06 Other Bonds and Securities........................................................... 55,938,824.93 Loans and D iscounts....................................................................... Stock in Federal Reserve B ank.................................................. Customers’ Liability on A cceptances........................................ Income Accrued but N ot C ollected............................................ 401,391,526.48 3,600,000.00 743,038.28 6,042,339.50 Banking H o u se .................................................................................. 11,100,000.00 $2,619,821,039.75 LIABILITIES D ep osits................................................................................................. $2,447,740,085.79 A cceptances....................................................................................... 765,474.98 Reserve for Taxes, Interest and E x p en ses.............................. 13,488,484.35 Reserve for C ontingencies............................................................. 18,109,934.35 Income Collected but N ot Earned.............................................. 247,880.55 Capital S to c k ..................................................................................... Surplus................................................................................................. Undivided Profits.............................................................................. 60,000,000.00 60,000,000.00 19,469,179.73 $2,619,821,039.75 United States Government obligations and other securities carried at $671,480,074.87 are pledged to secure public and trust deposits and for other purposes as required or permitted by law Member Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 OUR 50th YEAR 9 J t V MA N U PAC T U R E R S T R U S T COMPANY U I K t C i U K S' ED W I \ \ f. A L L E N C ha irm a n , M at hirst m A lk a li W orks, hie. LOW IN' J. B E IN E G k E ( .hairm a n, The S/pcrry & H utchinson (.o. Condensed Statement oj Condition as at close o f business December 31, 1911 s . blo o m President, A tla n tic , C u lf am i If cst Irnltes S team shifi Lines ed g ar LO U IL f .R W D A E I President. George A. F ullet Com pany RESOURCES Cash and Due from B an k s......................$445,668,127.31 U. S. Government Securities . . . . 1,205,104,025.83 U. S. Government Insured F. II. A. M o rtg a g e s ........................................ 5,142,007.22 State and Municipal Bonds.................... 19,941,305.85 Stock of Federal Reserve Bank . . . 2,220,300.00 21,606,252.39 Other S e c u ritie s ................................... Loans, Bills Purchased and Bankers' Acceptances........................................ 367,338,388.54 Mortgages : ........................................ 13,304,092.86 Banking H o u s e s ................................... 11,771,030.67 Other Real Estate Equities . . . . 633,361.99 Customers’ Liability for Acceptances . 2,954,175.03 Accrued Interest and Other Resources . 4,615,019.49 $2To(h298J)8Y!8 C H A R L E S A. DANA President, Spicer M an u fa c tu rin g (.org. IIO B A C L C . I E A N IC A N Pice-President JO H N M . I BA N K L IN N ew York C ity C H A R LES I KO LB C hairm an, Lincoln Savings B a n k P A U L IN O G L B L l President, L. Cerli & Co., Inc. II A B V L Y I). G IB S O N President * JO H N L . JO H N S TON P resident, Lam bert Com fin n y O S W A L D L . JO H N S T O N Sim pson I hacker & B artlett LIABILITIES Preferred Stock . . . $ 8,009.920.00 Common Stock . . . 32,998,440.00 Surplus......................... 33,000,000.00 Undivided Profits . . 19,604,009.64 93,612,369.64 Reserves lor Contingencies, 'Faxes, Unearned Discount, etc....................... 10,598,757.96 Dividend on Common Stock (Payable Jan. 2. 1 9 4 5 ) .................... 324,959.50 Dividend on Preferred Stock (Payable Jan. 15, 1 9 4 5 ).................... 200,248.00 Outstanding A c c ep tan ces.................... 3,438,845.06 Liability as Endorser on Acceptances and Foreign Bills . . . . . . . 240,764.82 Deposits . 1,991,382,142.20 $2,100,298,087.18 G I IA B L L S L JO N E S The (diaries L. Jones Com pany S A M U EL M eBO BLB I S ISeuf York (.tty JO H N I M A D D EN President, l.m ig ru n t I n d u s ln u l S a vin g s Bank . JO H N I ’ . M A G U IR E President, John P M aguire W* Co., Inc. G. B. P A LM E R President, C luett, Peabody cV Co , Inc. G E O R G E J. P A T T E R S O N President, Scranton Lehigh Coal (.o. H A R O L D C . R IC H A R D C hairm an, General Bronze Corporation H A R O L D V . SM I I If President, Home Insurance Co. i'll itcd States G oiernm etit sccun ties carried at $3.10,979,OB1.29 arc p led g e d to tec lire 11. :\ G oiernm etit IPm ■ i.,„ in Deposits o j $3 0 0 ,<966,523.95 a n d other / niblic F ids a n d tru st deposits, ai'id fo r other fm rpi >scs as reifm re d or p e rm itte d by law. E R N E S T S T A U IT E N C hairm an, Trust Com m ittee P linei pal G U Y W .V A U G H A N P resident, C urtiss-IP right Corporation GB A L B E R T N. W IL L IA M S President, W estern Union 7 cleg rap h Com p a n y X https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A N K IN G r r DO Broad Street. New York ( :.ty O 1 C lC t S IN G K e A T E 1! N E W VOKK Eu ropea h Represent.ulive Ollice: f, Cornhill, London, E. C. 3 Member Federal Reserve System Member New York Clearing House Association Member Federal Deposit Insurance Corporation H E N R Y C . VON E LM Vice-C hairm an o f the Board OUR 50th YEAR Ofliee: Preferred shares, a lt o f which arc held by in stitu tio n s a n d other investors, have a fair value o f $d0 a n d arr convertible in to a n d have a preference over the Com mon to the exte n t o f $50 p e r share a n d accrued dividends. Northwestern Banker January 1945 10 IS m tk NATIONAL TRUST a n d SAVINGS ASSOCIATION Condensed Statement o f Condition December 30, 1944 RESOURCES Cash in Vault and in Federal Reserve Bank ............................................ Due from B a n k s ............................................................ TOTAL CASH . . . . $ 909,451.553.50 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 S e c u r itie s ...................................... Stock in Federal Reserve B a n k ................................. Loans and D i s c o u n t s ...................................... . . 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 ...................................................... ..... $ 568.173,476.83 341,278,076.67 2,422,250,219.16 253,777,778.18 59,926,366.64 4,110.000.00 894.436,930.52 11.472,717.33 24.994,255.65 559,537.69 17,816,420.29 328,353.72 $ 4 ,5 9 9 , 1 2 4 ,1 3 2 .6 8 TOTAL RESOURCES LIABILITIES Capital: Common (4,800,000 Shares) . $ 60.000,000.00 Preferred ( 404,278 Shares)* . 8,085,560.00 107,000,000.00 Surplus ........................................... 33,779,200.87 Undivided P r o fits........................... Reserve for Increase of Common 3,914,440.00 C a p it a l........................................... 6,381,177.62 Other Reserves ................................. 162.053.65 Preferred Stock Retirement Fund TOTAL CAPITAL F U N D S ...................................... Reserve for Bad Debts ............................................ D e m a n d ......................$2,732,589,013.83 Deposits Savings and Time . 1,607,950,674.25 Liability for Letters of Credit and as Acceptor, Endorser, or Maker on Acceptances and Foreign B i l l s ................................................................. Reserve for Interest Received in Advance . . . Reserve for Interest, Taxes, etc..................................... 219,322,432.14 9,068,878.35 4,340.539,688.08 18.536.262.82 3.426.918.56 8.229,952.73 TOTAL LIABILITIES * Issued at $5 0 ($20 C apital—$ 3 0 Surplus), Annual D ividen d $2. Preferred to extent of and retirable a t issue p ric e an d accrued dividends. This statement includes the figures of the London, England, banking office. MAIN OFFICES IN TWO RESERVE CITIES OF CALIFORNIA SAN FRANCISCO LOS ANGELES MEME F ed era l reservé; * * '* • " * • Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 Branches throughout California united for strength an d service I M EM 8ER FEDERAL DEPOSIT INSURANCE CORP | OUR 50th YEAR 11 NOIRHW ESTER N T he follow in g letters w ere received fro m N orth w estern B an ker readers. Y ou r vietvs and opin ion s on any su b je c t tvill be g la d ly p u b lish ed in this colum n. DES FIFTIETH Y E A R w e st e r n B anker. “ W ith the conclusion of our 1944 sched ule I feel th a t an expression of thanks for the good positioning as well as a word of praise for the uniform ly fine p rin tin g are in order. ‘ ‘ We anticipate a continuation of our pleasant relations in 1945. ’ ’ J . V. G iem o ur , Vice Presi dent, Boche, Williams $• Cleary, Inc., 135 South La Salle Street, Chicago 3, Illi nois. "Beat His Brains Out" E ditor's Note: The following letter was received from 1st Lieutenant Norman A. Miller, formerly of the N o rth w estern B a n k er , who is now fighting in Germany and who recently received the bronze star medal for bravery in action. “ I went through my first civilian air raid last night and let me tell you i t ’s a weird feeling in a large city to hear the moan of th a t siren and know you are the target. “ We are the only Americans here as my outfit was the only ru e on the break through with the French tanks. We dashed clear through miles of defenses still under con struction on the other side of the mountains, and w ith P -4 7 ’s tearin g up retreatin g columns we dashed with the French clear to the Rhine. Boy, i t ’s exciting to know y o u ’re the first one in one of the largest and most im portant N azi towns bu t it is more exciting than I care fo r a t times. ‘ ‘ We have 50,000 Germans cut off behind us now and we have taken about 6,000 here in the city as prisoners. I hav en ’t seen much of the city as we only clean out a few blocks each day. “ I was in on th e capture of the first 400. Their m ajor w anted to surrender to the Americans only if they could go to th e States and they w anted to pick th e states so we gave them their choice. ‘ ‘ Boy, I ’m glad every tim e we can get 300 or 400 off the streets. The French sure d o n ’t fool w ith them. We were fighting down one street, house by house, and French tankers were fighting down the next. All (Turn to page 55, please) OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N U M B ER 690 O ldest Financial Journal West of the Mississippi River IN T H IS J A N U A R Y , 1945, ISSUE "W atched With Appreciation" “ I have w atched w ith appreciation the splendid m anner in which our Milwaukee Road advertisem ents were handled in N orth MOINES Editorials Across the Desk from the Publisher............................................................................. 12 Feature Articles Dear Editor ....................................................................................................................... Frontispiece— “Out to Lunch”....................................................................................... How Our Directors Direct............................... .............................................................. Banking and Business Conditions As I See Them................................................... A ssets and Liabilities Increase..................................................................................... Facts About G. I. Home Loans..................................................................................... News and Views of the Banking World....................................... Clifford De P u y Say It With Letters ............................................................... ........... O. L. D isher What Will Deposits Be When the Debt Is 300 Billion............P. R. E a sterd a y Is Endorsements By Other Than Payee a Forgery?..-........................................... Irving Trust War Loan Display................................................................................... What Do You Think?........................... ............................................................................. 11 15 16 17 19 20 21 22 24 26 28 31 Insurance 90 Billion Fire Insurance in Force.............................................................................. 33 Investments How Bank Credit Group Plan Works............................................ E va n Randolph 37 State Banking News Minnesota News ................................................................................ 43 Twin City N ew s....................................................................................................... 46 South Dakota N ew s.................... ..................................................................................... 51 Sioux Falls N ew s................................................................................ ..................... 52 North Dakota N ew s............................................................................ .............................. 54 Nebraska News ................................................................ 57 Omaha Clearings .................................................................... ............. _r.............. 59 Lincoln Locals ................. ...................... ............ ............................ ........................ 61 Iowa News ............................. .......................... ................................................................. 63 You Can Bank On the Future of Air Commerce...............A. M. S tro n g 69 Des Moines N ew s.... .............................................. 70 Clerking Sales Made E asy................................................................................... 73 The Directors* Room A Few Short Stories to Make You Laugh............................................................... 86 Conventions ...................................................................................... 86 NORTHWESTERN BANKER, 527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163 CLIFFORD DE PUY, Publisher RALPH W. MOORHEAD Associate Publisher ELIZABETH COLE Advertising Assistant HENRY H. HAYNES Editor MARGUERITE BROWN Office Supervisor RUTH KILLEN Associate Editor SADIE E, WAY Circulation Department NEW YORK OFFICE Frank P. Syms,^Vice President, 505 Fifth A v e ., Suite 1806 Telephone MUrray H ill 2-0326 Northwestern Banker January 1955 12 Across the Desk and enterprise, m ust adopt some form of the capitalistic system and use the hope of rew ard as the fundam ental philosophy of its governm ent if it is to perm anently achieve greatness. That we have always had pessimists is indi cated by the statement of just three great men of history. The great English Prime Minister William Pitt in 1800 said: “ There is scarcely anything around us but ruin and despair. ’’ The brilliant Disraeli in 1849 said: “ In industry, commerce and agriculture, there is no hope. ’’ On the day of his death in 1851, the Iron Duke of Wellington lamented: “ I thank God that I am spared the consummation of the ruin that is gathering around us.” 3 > ea * jja ltn *7. tf- ly n + i: Y our book, “ As We Go Marching,” should be read by every A m erican, because in it you discuss the destructive elem ents in A m erican life which p arallel the same F ascist destroying developm ents in Ita ly and Germ any. You ask, Mr. F lynn, “ If national socialism is not the answer to the troubles of the capitalist system—then what is? The question is a fair one. My own answer is that as between the troubles of the capitalist system and national socialism I will take the present system no matter how great and difficult its troubles. Anything rather than the degenerate, the degrading forms of existence which Fascism requires.” W ith this statem ent, we quite agree, b u t we cannot deny the fa ct th a t w ith a socialistic labor governm ent in control, such as we have today, th a t “ some intelligent and ra tio n al solution m ust be found to our present problem s or the frau d u len t m essiahs w ill have th e ir w a y .” W e m ust fight on, Mr. F lynn, for the proper solution to our economic problems. If the U nited S tates goes down in defeat from w ithin, it will be the fa u lt of all of us. Therefore, we m ust continue our efforts for good govern m ent and intelligent rep resen tatio n in the H alls of Congress. W e, too, Mr. F lynn, believe th a t we should look on the b rig h ter side of our present prob lems, no m atter how d ark and black they seem at times. W e believe th a t every country in the world, if it is to rise to its g reatest height of developm ent Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19b5 P erhaps to some of those in this country, as well as other p a rts of the world, these statem ents seem exceedingly tru e now, but no one ever solved a problem by com m itting suicide b u t only by facing facts and try in g to find a solution fo r them. N ational socialism is not the answ er to the troubles of the capitalistic system, as you have pointed out, Mr. F lynn, b u t it is our belief th a t it m ust be some form of an incentive system — call it w h at you w ill—if this nation and other nations of the w orld are to serve th eir own peoples and go fo rw ard to benefit all m ankind. “ As W e Go M arching,” let us m ake every effort to be m arching tow ards the goals w hich m ean the “ preservation of our essential political lib e rty .” I d e a * t f - l e d J l . Q ^ c u u ^ a ^ u i: As a m em ber of the House B anking and C ur rency Committee, we w ere interested in your recent statem ent, in which you first praised the banks for th eir help in financing the w ar and th en criticized them for not tak in g care of the credit requirem ents of th eir custom ers. In one place you said, “ When the financial history of this war period shall have been written, one of the brightest pages will carry the story of the faithful manner in which the commercial banks of the United States responded to the war needs of the Treasury, ’’ and in another place you said, ‘ ‘Banks are miserably failing in meeting the credit requirements of our people. “ It is my frank opinion that the banking fraternity has long overlooked vast opportunities, and that it is now high time aggressive leaders in the industry take the initiative and design credit creating machinery which can meet the terms of OUR 50th YEAR 13 From the Publisher Government loans, and thus make it unnecessary for individuals to deal with Government agencies insofar as the obtaining of credit is concerned. Either that, or let bankers prepare for real Gov ernment competition. ’’ W e do not quite u n d ersta n d w hat you mean, Mr. C raw ford, w hen you say, “ Design credit creatin g m achinery w hich can m eet the term s of G overnm ent lo an s.” As fa r as we know, every legitim ate dem and fo r fu nds is being m et by the banks th roughout the nation. J u s t recently state-w ide bank credit groups have been established to help in the post w ar financing of sm all business. Also, w hen you consider the “ term s of Gov ernm ent lo an s,” you m ust rem em ber th a t banks have to m eet the low G overnm ent in terest rates and still show a profit if they expect to stay in business, although G overnm ent agencies have no such a w orry because th eir operations are financed out of the Treasury. In a recent survey m ade by the A m erican B ankers Association, it indicated th a t banks of the co u n try had m ade 24,000,000 loans and th a t the average new loan was $1,700 and we h ard ly thin k , R epresentative C raw ford, th a t w ith such a reco rd you can honestly say th a t banks are “ failin g m iserably to provide credit to th eir custom ers.” T hanks for your bouquets, b u t we th in k your brickbats were unnecessary and u n w a rra n te d ! Ibead Pape. Plud: Y our recent “ message to the w o rld ,” offering a p rogram to secure Peace and prev en t social revolutions was m ost excellent, b u t w ill it be followed? Y our plan for a Society of Nations, in which all states should have equal rig h ts to abolish aggression un d er the slogan, ‘ ‘ War Against War, ’’ rem inds us of W oodrow W ilson’s fam ous sta te m ent th a t W orld W a r I was being fought, “ To make the world safe for Democracy.” W h eth er your program will have any b etter success th an W oodrow W ilso n ’s rem ains to be seen, b u t certainly som ething besides the rule of political gangsters m ust rise to the surface in the lib erated countries if we are to have any k ind of sound leadership for the masses of E urope, because, as you say, “ the masses are an follow in turn, today this flag, tomorrow another. ’’ The rep o rts from E urope indicate th a t the w orking classes are definitely leaning to the left, and how m uch revolution th ere will be in the various .countries before some form of sound leadership w ith a stable governm ent emerges, rem ains only to be seen, b u t a “ W a r A gainst W a r” cannot succeed u n til stabilized govern m ents are established th roughout the continent. S * R e e le d : In a recent speech, you said, “ A high level of consumer’s expenditures is the basic requirement for postwar prosperity,” and w ith this we agree, b u t if a high level of national income is to be m aintained th ro u g h “ public works or benefits, financed out of the national treasury” as you also m ention, then we are again try in g to create pros p erity th ro u g h spending. This program is all rig h t on an em ergency basis b u t certain ly not as a perm anent program . 3 > e a A /V a 'itlu u e d te s i+ i fia+tJzed P ea d & U : W ith this issue of T h e N o r t h w e st e r n B a n k e r we begin our 50th year of service to banks and bankers. The w orld of banking and finance in the last half century has h ad m any ups and dow ns; has p articip ated in two w orld wars, and will soon be helping to c a rry out the postw ar problem s which will be facing the U nited States. Through this half century T h e N o r t h w e s t e r n B a n k e r h a s en deavored to conscientiously and fa ith fu lly record from m onth to m onth the kaleidoscopic changes in the banking picture. W e hope th a t we m ay continue to have this same o p p ortunity fo r m any years to come. The Ju n e issue of T h e N o r t h w e st e r n B a n k e r for 1945 will be devoted especially to our 50th A nniversary and we will have m ore to say on this im p o rtan t event a t th a t time. B ut now m ay we express our sincere appreciation to all our friends who have m ade our pathw ay so pleasant, so excit ing and so in terestin g as we have gone along. T hat 1945 m ay be a Victorious year is also our sincere wish. easy plaything in the hands of anyone who ex ploits their instincts and impressions, ready to OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 1945 Central National Bank and Trust Company On Fifth Avenue — Between W alnut and Locust — Des Moines STATEM ENT OF C O N D IT IO N ★ ASSETS DECEM BER 3 0 , 1 9 4 4 DIRECTORS Cash and Due from Federal Reserve and other banks................$19,170,563.76 United States Govern ment Securities. .. . 27,484,030.72 Obligations of United States Governmental A g e n c ie s .................... 1,826,894.25 $48,481,488.73 Municipal Securities .......................... Market Bonds ....................................... Loans and D iscoun ts............................ Overdrafts ............................................. Stock Federal Reserve Bank........... Accrued Interest R eceivable........... Bank Prem ises and E q u ip m e n t.... 6,293,150.62 545,374.09 16,647,427.72 326.78 60,000.00 208,082.63 318,806.26 T O T A L ......................................... $72,554,656.83 G. E. BRAMMER Brammer, Brody, Charlton & Parker E. F. BUCKLEY President HARRY GOLDMAN President, C. C. Taft Co. WM. J. GOODWIN Chairman, Board of Directors ROBERT K. GOODWIN President, Redfield Brick & Tile Co. H. F. GROSS Secretary, Iowa Mutual Tornado Insurance Assn. MARK L. JOHNSON Real Estate B. REES JONES President, Town Mutual Dwelling Insurance Company GUY E. LOGAN President, Standard Chemical Co. W ALTER E. MUIR LIABILITIES Common S t o c k ...........$ 1,000,000.00 Preferred S t o c k .................................... 250,000.00 Surplus .......................... 750,000.00 Undivided Profits . . . 558,693.55 Other Reserves ......... 293,397.28 $ 2,852,090.83 Reserve for Retirement of Preferred Stock .............................. 250,000.00 Reserve for T a x es................................ 150,317.65 Discount C o lle c te d .............................. 73,056.38 GEORGE A. PEAK Real Estate JULIAN A. PEVERILL President, Hudson Jones Auto Co. CHAS. N. PIERCE Vice-President, Langan Paper Co. WALTER L. STEWART Gibson, Stewart & Garrett D E P O S IT S : Demand .................... $53,626,182.21 S a v in g s ...................... 4,269,895.08 Public F u n d s ............ 11,333,114.68 69,229,191.97 T O T A L ......................................... $72,554,656.83 U . S . G o v e rn m e n t a n d o th er se c u ritie s c a rrie d a t $ 2 0 ,0 6 9 ,4 1 5 .4 8 a r e p le d g e d to se cu re U. S. W a r L o a n D e p o sit A cco u n t, P u b lic Fu n d s a n d T ru st D e p a rtm e n t Fu n d s. 50 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis YEARS January 19J5 OF FRIENDLY SERVICE Member F. D. I. C. OUR 50th YEAR 15 OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 1945 16 How O ur Directors Executives of Well-Operated Banks Tell How Their Directors Contribute to Better Bank Management —A E d ito r ' s N o t e : This is the second in the series of articles on “H otv Our Di rectors D irect.” The first group of hankers to tell of th eir directors’ activi ties appeared in the N o vem b er N o r t h w e st er n B a nker. H ere is w h a t fo u r m ore officers say: O. C. Stusrud, p resident, Goose R iver B ank, M ayville, N o rth Dakota: “I believe we have as o u tstan d in g a board of directors as an y b an k in this com m unity or su rro u n d in g te rrito ry . T hey are v ery active in all th e activ i ties of th e in stitu tio n , n o t only in th e d irecto rs’ room, w h ere th e y m eet v ery regularly , b u t also in outside activities such as stu d y in g th e livestock situ a tion as it w ould affect our loans, and also o th er a g ric u ltu ra l m a tte rs and new ideas w hich m ay come up. “These m a tte rs we often discuss a t our m eetings in ord er th a t it can be passed on to our custom ers as we m ay see fit.” A. E. Dahl, president, R apid City N ational B ank, R apid City, South Da kota: “W e have a v ery uniq u e situation here, in th a t our five officers are also our five directors. A lthough tw o of th e directo rs are only semi-active and have outside in terests, th e y have th e ir desks h ere a t th e b an k and spend m ost of th e ir tim e here. “This gives us an o p p o rtu n ity to have a d irecto rs’ m eeting alm ost at any tim e, as th e need arises. I t is v ery seldom a person comes in for a loan, no m a tte r how large, th a t we Northwestern Ranker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19k5 Northwestern Banker Survey— cannot give him an answ er on his first call. “W e feel th a t our directors all being active in th e b ank as officers, w e can give service th a t cannot be excelled. Our directors also being officers, they are p erh ap s th e b est inform ed board of directors about th e activities of the bank. T here is v ery little th a t goes on of m ajor im portance at our bank th a t is not know n to our directors. They, likew ise, also know m ost of our custom ers, w hich in tu rn enables us to re n d er a sup erio r service.” Opal A. E uce, cashier, A m erican N a tional Bank, A rlington, Iowa: “D uring a period about a y ear ago w hen we w ere faced w ith a serious help shortage, our Board of D irectors all took a personal in terest in securing additional help, m aking personal con tacts and interview s w ith various prospects. “All of our D irectors are alw ays w illing to discuss th e details of our service charges w hen asked to do so by our b ank custom ers or non-custo m ers. T here have also been tim es w hen custom ers have contacted some board m em ber about securing a loan w hen th ey w ere a little h e sita n t in ask ing a b an k officer first. The board m em ber th en im m ediately notified som e b ank officer and w e in tu rn con tacted th e custom er and secured the loan. “In several instances our directors have p ersonally inspected and helped appraise farm p ro p erty and chattel m ortgage property. “We feel th a t our board of directors is one large fam ily, alw ays w orking for th e in te re st of th e b an k as well as for th e o ther board m em bers.” F . J. Cleary, vice president, F irst N ational Bank, G rand Island, N e braska: “The F irst N ational B ank of G rand Island has over a period of m any y ears endeavored to instill into the m em bers of our directo rate th e feel ing th a t th ey are m em bers of th e b an k ’s official fam ily and as such bear a direct responsibility in th e conduct of th e bank. “T his response to th e needs of th e b an k ’s supervision has extended over m any y ears and has resu lted in reg u lar and pun ctu al atten d an ce at m eet ings and response to assignm ents, w hich we have endeavored to m ete out im p artially and w ith a view to req u est from those best qualified in th e prem ises. “F u rth erm o re, our directo rs’ com m ittees have been encouraged to feel th a t our officers an d personnel are al w ays ready to ren d er every assistance to help them in th e ir special duties such as directors exam inations, dis count com m ittee m eetings and in v est m ent discussion, both for the Com m ercial and T ru st D epartm ents. “I t is to be assum ed th a t th e func tioning of th e b an k itself is a reflection of th e functioning of its board and th e policy and success of a b ank w ill usually explain th e policy and activi- (T u rn to page 50, please) OUR 50th YEAR 17 ^Banking and Busin ess Conditions As ! See Them0 Officers of City Banks Comment on Current Conditions and Give Their Opinions on What's Ahead for 1945 ROM th e ir close contact, th ro u g h tra v e l and correspondence, w ith th is m idd lew estern area, officers of th e larg er b an k s in th e co u n try are w ell acquain ted w ith econom ic p ro g ress in th is te rrito ry , and as we go into 1945 we have asked th em to give to N orthwestern B anker read ers th e ir view s on c u rre n t b an k in g and business conditions. T h at th e fu tu re w ill b rin g m any changes is noted in th e follow ing p a ra grap h from “P rospects for B usiness in 1945” by Brig. L eonard P. A yres, vice presid en t of th e Cleveland T ru s t Com pany, in w hich he says: “Both 1945 and 1946 are d estined to be y ears of tra n sitio n from a w artim e econom y to a peacetim e economy. The tra n sitio n is alread y u n d e r w ay on a v e ry sm all scale. As it expands and extends it will go fo rw ard on a huge scale and for a long tim e. I t w ill not be sim ple or easy because it w ill in volve so m an y fu n d am en tal changes for so m any people th a t its develop m ents cannot have th e ch aracteristics of sim plicity and ease. W e are quite safe in assum ing th a t 1945 w ill be a y e a r of g re a t events, and one w hich w ill b rin g to th is co u n try a good deal of social, financial, and business tu r m oil.” Officers of larg er b an k s w ho re sponded to o u r re q u e st for inform aation w rite as follows: F "Some Tough Problems Ahead" R O L A N D C. IRVINE Vice President C h ase National Bank New York As has been tru e d u rin g m ost in te r natio n al conflicts, th e p re se n t volum e of b u siness activity, including both w a r an d civilian products, is being m ain tain ed on a plane h igh above peacetim e levels. A large p o rtio n of in d u stria l o u tp u t has been p u rchased d irectly by th e g o v ern m en t and, a p a rt from supplies sen t to o u r arm ed forces, som ething m ore th a n a billion dollars of A m erican p roducts are going abroad each m onth. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Should business follow a course sim ilar to th a t of previous w ar periods, we can expect a sm aller o u tp u t of goods w hen th e w ar comes to a close. C hanges in personnel, in products, in p lan ts and in m ethods of financing are also to be expected as w ar de m ands subside. U nquestionably, we are going to be confronted w ith some tough problem s in th e New Year. P robably because we have been so anxious to see th is terrib le conflict end as soon as possible, m any of us have been indulging in w ishful th in k ing on th is score. T herefore, it seem s to me th a t ra th e r th a n atte m p t to forecast th e fu tu re we should p ut fo rth our g reatest efforts in th e com ing y ear tow ards devising w ays and m eans of stren g th en in g our banking and business stru c tu re so th a t we m ay be prep ared as b est we can for any eventuality. W e find it necessary to develop im proved m ethods of dom estic of 1944, com m only know n as th e “G. I. Bill,” offers an exceptional o pportu n ity to build good will. R etu rn in g v eteran s m ay rig h tfu lly expect good counsel and sound advice for th e ir plans to fit them selves back into civilian life. I th in k a trem endous am ount of good w ill can be built in th is activity alone, w hich should re sult in m ore profit in th e future. "Optim istic tor 1945" H. H. EC H TER M EYER Vice President Live St ock National Bank Omaha The m ajo rity of th e b an k ers in th is te rrito ry have h ad a good y ear and w ith o u t a doubt are in th e soundest condition in b an king history. In m y discussion w ith them , I am led to believe th a t th e n ex t y ear w ill be as successful if crop conditions continue to be favorable. T he ban k ers Banks A re Missing M any Chances to Lend Their M oney for W ar Production — Sending Busi ness to Government Agencies^ d istrib u tio n and new concepts in the developm ent of foreign trade. A m er ican business m u st be ready to w in th e peace. "G ood W ill Through G. I. Bill" F. M. CO V E R T Assistant Cash ier Drovers National Bank Chic ago In m y contact w ith co u n try banks I find th a t m ost everyone is th in k in g about earnings in th e fu ture. W ith loans being paid off daily it is neces sary th a t we look to o th er avenues for income. B ankers, in m y opinion, are not as a w hole good w ill builders; in th is connection it seem s to m e th a t th e Service M en’s R ead ju stm en t Act generally are optim istic about b u si ness conditions for 1945, b u t th e ir m ain th o u g h t is to help b ring th e w ar to a satisfactory conclusion as soon as pos sible and th e y are p u ttin g fo rth every effort tow ards seeing th a t th is is ac com plished. W ith th is in m ind, th ey are u rging th e ir custom ers to p u r chase W ar Bonds to th e lim it of th e ir ability. "Give Thought to Invest ments" W. B. W H IT M A N Assistant Vice President Manufactu rers Trust Company New York I can foresee no change in business conditions du rin g 1945. F ro m all in dications, th ere appears to be in sight no im m ediate term in atio n of th e w ar Northwestern Banker January 1945 18 Banking and Bu siness Conditions A s I See Them in E u ro p e and th e defeat of Ja p a n w ill take a t least a n o th e r year. This, of course, will n ecessitate continued p ro duction on th e p a rt of our large in du stries for th e w a r effort and th e raisin g of m ore livestock an d food products, not only for th e arm ed forces and ourselves, but, also, to tide over the conquered te rrito rie s u n til th e y are self-sustaining. R econversion to peacetim e in d u stry w ill certain ly come m uch m ore slow ly th a n m an y of us had thought; for m ore ra th e r th a n less labor w ill be req u ired for w ar production, and som e of it ness. B ut as a co u n try we have never done th ings half way, no m a tte r w h at it cost us, and th ere is no reason to believe th a t any of us w ill h esitate in th is m ost serious crisis in our n a tio n al history. Vice President Se c urity National Bank Sioux C it y loans in our banks seem s to have held up fairly well, b u t otherw ise loans are generally on a declining basis. As th e w ar ends and we reach th e reconversion period m any com plex problem s w ill arise in ag riculture, business and banking. Upon th e good com m on sense and good ju d g m en t of our b an k ers m ay well depend th e suc cess w ith w hich our business and general system of p riv ate en terp rise comes th ro u g h th is period of reco n version. Im m ediate business conditions in th e Sioux City trad e te rrito ry of n o rth "Trend Toward Inflation" "Satisfactory Financial Position" B. M. W H E E L O C K PAUL T. BETZ Actual Conditions in the M oney Market Indicate That Rates W ill Remain Low for Some Time to Come/; m ay have to come from th e a g ric u ltu r al areas. C ertainly o u r farm s, w hich are now sorely underm an n ed , m ay be facing even m ore difficult tim es. The banks, too, m u st continue to subo rd in ate th e ir activities com pletely to th e w ar effort and th e needs of th e governm ent, helping to finance w ar production, h an d lin g ratio n accounts, and prom oting th e sale of bonds. T here is no prospect, as I see it, of any increase in th e volum e of com m ercial loans u n til reconversion sets in to a m ark ed degree; th e re m ay even be some loss of th is business; for m ost concerns and farm ers have p len ty of cash w ith w hich to m eet th e ir seasonal dem ands. B anks w ill consequently have to give careful th o u g h t to th e ir in v estm en ts in U nited States g overn m en t bonds, w hich are now th e ir principal source of incom e, from th e angle of th e ir ta x liability. B ut th e bank s are m issing m an y chances to lend th e ir m oney for w ar production and are allow ing business to re so rt to g o v ern m en t agencies for th e neces sary funds. T his situ atio n can and should be rem edied. In creasin g bal ances on deposit, and th e low re tu rn on th em to th e banks, have reduced m aterially th e incom e from service charges, and w ould seem to call for some re a d ju stm e n t in th e basis of these charges. I believe th a t we have n o t been re a l istic enough about th e ta sk involved in w inn in g th e w ar. It w ill probably req u ire g re a te r effort and g re a te r sac rifice th a n we have realized, and th e re fore a m uch slow er re tu rn to our norm al w ays of living and doing b u si Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^5 w est Iowa, n o rth e rn N ebraska, South D akota and so u th w estern M innesota, are directly determ ined by th e position of its a g ricu ltu ral and livestock in dustry. The y ear of 1944 has b ro u g h t am ple m o isture and generally good crops. Our farm ers are doing an excellent production job despite shortages in som e instances of labor and m achin ery, and have ju st com pleted h a rv e st ing a bum per corn crop. T his is one of th e g reat livestock producing and fatten in g areas of our country. W ith p resen t livestock and crop prices, the end of th e year finds o u r farm ers in a relativ ely sound and gen erally satisfactory financial posi tion. B usiness in general has bene fited from th is favorable condition. Those businesses w hich have suffered Vice President Live St ock National Bank Chic ago F o r th e du ratio n a t least, it would appear th a t business has quite g en er ally resigned itself to th e prem ise th a t the economic system m ust necessarily (will be req u ired to) operate w ithin a rigid fram ew ork. T h at is the posi tion in w hich we find ourselves today. M ost of th e c u rre n t th o u g h ts and discussions reg arding business are being devoted to postw ar probabili ties and possibilities. Two quite defi n itely opposing schools of th o u g h t are in evidence. The one holds th a t w hen th e self-imposed w artim e re stra in ts on spending are rem oved, prices w ill rise—m ay even ru n aw ay—and th a t prudence requires hedging against in flation. R eversely, th e o th er school holds th a t w ith th e end of the w ar w ill come deflation, provoked by th e closing dow n of h u n dreds of w ar factories, dem obilization of the arm ed forces and by m illions of people being au to m atically th ro w n into unem ploym ent. T hey contend th a t th e re su lta n t re duction in th e flow of spending m ust re su lt in depressed prices. A Tremendous Amount of Good W ill Can Be Built Around Complete Cooperation W ith the G . I. Bill" from lack of m erchandise to sell are looking fo rw ard to expanded opera tions at th e end of th e E u ro p ean w ar. T here is a p p aren tly no doubt of the dem and and ability of our tra d e area to pu rchase w hen m erchandise is available. B anks in our te rrito ry show de posits at a high level w ith earnings in 1944 generally satisfactory. In the cattle feeding te rrito ry th e dem and for It is quite obvious th a t the fu tu re om ens m any u n certain phases for our economy, therefore, to a ttem p t to p redict definitely ju st how these u n certain ties w ill unfold, or w hen, w ould be absurd. No one has ever been able to accurately forecast th e future. H ow ever, th ere are certain fu n d am en tal aspects of our econom y w hich seem to be so well established as to be self-prognosticating w ith respect to OUR 50th YEAR 19 th e ir fu tu re course: one is th a t actual conditions in th e m oney m a rk e t in d i cate th a t ra te s w ill rem ain low for some tim e to come, and th e o th er is th a t th e liberal elem ent in g o v ern m en t has been g aining in power. Both of th ese conditions or tre n d s are fu n dam en tally inflationary and are bound to have a p rofound influence in th a t direction, y e t it w ould be ab su rd to assum e th a t tra n sitio n from a w ar econom y to a peace econom y could be accom plished w ith o u t experiencing price ad ju stm e n ts of v a ry in g degrees. A reasonable conclusion to be d raw n from an over-all view of b an k in g and business conditions is th a t it behooves everyone to exercise his b est ju d g m en t and keep a le rt to th e probable effects of ever changing conditions. "Two Objectives for Assets and Liabilities Increase ARLY last October, th e C om ptroller of th e C urrency released th e sem i a n n u al re p o rt of assets and liabilities of all active banks in th e U nited States and possessions as of Ju n e 30, 1944. T hese data w ere com piled from call re p o rts of n ational banks and from in form ation provided by S tate b ank supervisors. C om parable figures from p revious rep o rts have been used in th e p rep aratio n of th e accom panying tables and ch arts covering th e period D ecem ber 31, 1939 th ro u g h Ju n e 30, 1944. E 1939 to $139.6 billions on Ju n e 30, 1944 T his w as an increase of $62.0 billions or 80 p er cent. Liabilities and Capital Accounts On the liability side sheet the increase of from December 1939 1944 was concentrated of deposits. of the balance $62.0 billions through June in the growth Assets D em and deposits of individuals, p artn ersh ip s, and corporations in creased from $28.2 billions a t th e end of 1939 to $59.4 billions by D ecem ber A ssets of all active banks increased from $77.6 billions on Decem ber 31, (T u rn to page 50, please) 1945" V. L. BA R TLIN G Assistant Vice President First National Bank ASSETS AND LIABILITIES OF ALL ACTIVE BANKS IN THE UNITED STATES^ December 31. 1939-June 30.1944 C h ic a g o As we look ahead to a new year, it is desirable for us to analyze c u rre n t b an k in g and b u siness conditions, and to obtain as clear a perspective as pos sible of th e m onths ahead. Few , if any, persons, have th e w is dom or fo resig h t to forecast w ith any assu ran ce th e ebb and flow of business. T h ere are fa r too m an y unp red ictab le factors. H ow ever, th e re a re tw o fu n d am en tal objectives w hich are im p erativ es in th e th in k in g of b an k ers in th e com ing year. F irst, we m u st ta k e ev ery step es sen tial to th e sound and successful financing of th e w ar. T h a t m eans en couraging in ev ery w ay g re a te r and g re a te r ow n ersh ip of th e gov ern m en t debt by o u r people, and th e holding by individuals of g o v ern m en t secu ri ties to m atu rity . Second, as b an k ers we need to en courage each of our cu stom ers to place his financial affairs in sound condition. The sev ere dislocations of w a r sooner or la te r b rin g serious econom ic changes and difficult problem s, w hich w ill be successfully m et only by those w ho hav e reduced th e ir debts, b u ilt th e ir su rpluses, and stre n g th e n e d th e ir financial positions. T he b an k er has th e resp o n sib ility of holding th ese objectives for 1945 clearly before th e individuals an d businesses of his com m unity. S h o r te n e d In d ian ch ieftain (m aking speech to his tr ib e ) : You all know m e as “Old Chief T ra in w h istle ”, b u t since I am ex trem ely dem ocratic, I hope th a t, for short, you will feel free to call me “Toots.” OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis U Includes territories and insular possessions 2] Commencing with December 31, 1942, re cip ro ca l interbank demand balan ces with banks in the United States have been excluded. F o r Decem ber 31, 1941 and p rio r dates , demand b a la n ce s were re p o rted gross. Source: United States Treasury Department Northwestern Banker January 1945 20 Facts About G . I. Home Loans Answers to the Questions the Home-Buying Veteran Will Probably Ask When Seeking a Loan Under the G. I. Bill of Rights E ditor’s N ote: G uaranteed loans to veterans, covered u n d er th e “G. I. B ill of R ig h ts,” come u n d er jo u r classifica tions. F irst, the purchase or construction of a hom e, defined in the regulations as a “dw elling consisting of n ot m ore than fo u r fa m ily u n its, or any com bination dw elling or business property, the p ri m ary use of w h ich is occupation by the vetera n as his hom e.” Second, purchase of a farm , includ ing land, buildings, livestock, equip m en t, m a chinery or im p lem en ts. Third, purchase of a business, in cluding land, buildings, equipm ent, m a chinery, supplies, or tools. F ourth, fo r repairs, alterations and im p ro vem en ts in, or fo r p a y m e n t of delinquent indebtedness, taxes or spe cial assessm ents on a dw elling, includ ing a fa rm dw elling, ow ned and used by the vetera n as his home. The questions and answers below, compiled by the Worcester Federal Sav ings and Loan Association, Worcester, Massachusetts, apply only to that por tion of the G. 1. Bill of Rights dealing with home loans. Q W ho is eligib le H om e Loan? for a G. I. A. A ny h o norably discharged v e t eran of W orld W ar II hav in g at least 90 days of active service, or h o n o r ably discharged by reason of in ju ry or disability in cu rred in service. Q. W hat is the tim e lim it for m aking a G. I. loan application? A. W ith in tw o y ears a fte r sep ara tion from service, b u t n o t m ore th a n five y ears a fte r th e w ar ends. Q. W hat kind of property qualifies as a h om e”? cations required by the V eterans’ Ad m inistration? A. 1. T h at th e proceeds of th e loan be used for p aym ent of th e purchase price of th e dw elling or the cost of construction. 2. The term s of pay m en t m u st bear p ro p er relatio n to y o u r p resen t and an ticip ated incom e and expenses. 3. The p ro p erty is suitable for dw elling purposes. 4. The purchase price or construc tion cost should not exceed the re a sonable norm al value of th e real es tate. Q. W hat is the liab ility of the v eter an w ho finances a hom e under the G. I. plan? w hichever is less. The lender assum es th e risk on th e balance of the loan. (Exam ple: A hom e costs $6,000 and th e v eteran needs th e en tire am ount. The go v ern m en t guaran tees $2,000, and th e lending in stitu tio n ’s risk is on th e rem aining $4,000. All loans u n d er th is plan bear an in te re st rate of 4 p er cent.) 2. The borrow er m ay elect to use an F H A in su red first m ortgage and a 4 p er cent second m ortgage (not to ex ceed 20 p er cent of th e cost or p u r chase price of th e pro p erty ) to be g u aran teed by th e g overnm ent u n d er th e G. I. Law. The $2,000 lim itation on th e G. I. loan applies here also. Q. D oes the G overnm ent guaranty of a loan decrease as the loan is paid down? A. A v eteran is expected to m eet all p ay m ent obligations except th e first y e a r’s in terest on that portion of the A. Yes, it decreases pro-rata w ith th e loan. loan w h ich is guaranteed by the g o v ernm ent. A fter th e first year, all costs and p aym ents are th e responsibility Q. Can a veteran already ow n in g a hom e secure a G. I. loan? Q. W hat are the ch ief loan qualifi- Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 * of th e veteran. Q. W ho su pp lies the m oney for G. I. loans? A. The tions. qualified lending in stitu Q. W hat is the m axim um tim e al lowed for rep aym en t in fu ll of a G. I. loan? A. 20 years. Q. W h at proportion of th e cost or purchase price of a hom e can be ob tained as a loan u nd er the G. I. Law ? A. T he law contem plates a 100 per cent loan w here it is needed by the v e te ra n up to certain price lim its. A. Yes. The G overnm ent w ill g u a r antee loans for th e purpose of m aking repairs, alterations, or im provem ents in, or paying th e delinquent p a rt of indebtedness, taxes, or special assess m ents on residential p ro p erty owned by a v eteran and used by him as his home. Loans for th e above purposes w ill be g u aran teed up to 50 p er cent or $2,000, w hichever is less. Loans m ay also be obtained for th e co nstruc tion of a new home, in th e event th e v eteran m ight w ish to re n t th e hom e he already owns. Q. Can a G. I. loan be increased in the future to pay for property im p rovem ents or repairs? A. Yes, if th e increase is approved by th e V eteran s’ A dm inistration. Q. H o w does this w ork out? A. A ny resid en tial p ro p e rty of not m ore th a n four fam ily u n its, or any com bination of hom e and business property , th e p rim a ry use of w hich is occupation by th e v e te ra n as his hom e. J. Q. W ho approves a G. 1. loan in the first place? A. T here are tw o lending plans. 1. The lending in stitu tio n m ay ad vance w h atev er is needed to pay th e A. The V eteran s’ A d m inistration is cost or purchase price of a home. th e final a u th o rity in g u aran teein g In th is case, th e g overnm ent g u a r or refusing to g u aran tee a v e te ra n ’s antees 50 p er cent of th e loan or $2,000, G. I. loan. OUR 50th YEAR V V 21 N ew s a n d V iew s OF THE BANKING WORLD By Clifford DePuy J OE C. W ILLIA M S, vice p resid en t of th e Com m erce T ru s t Com pany, K ansas City, had an es pecially festive holiday season since his son, Joseph Campbell W illiam s, Jr., w as m a rrie d to Jean n e Dodds, d au g h te r of Mr. and Mrs. E u gen e M axw ell Dodds, a t th e C ountry Club C h ristian C hurch in K ansas City. Josep h C. W illiam s, Jr., is w ith th e M edical Corps of th e A rm y of th e U nited S tates an d is statio n ed a t W ash in g to n U niversity, St. Louis. H . G. W ells, th e B ritish novelist, seem s to th in k th a t P rim e M inister W inston C hurchill has “now outlived his role.” T he a u th o r recen tly said, “If w e do not end W inston, W inston w ill end us. H is ideology, picked up in th e g a rriso n life of India, on th e reefs of South A frica and in th e m a te rn a l hom e an d conversation w ith w ea lth y C onservative households, is a pitifu l jum ble of in co h eren t nonsense. He has served his purpose. A Boy Scout is b e tte r equipped.” E m il A. Stake, 56, vice presid en t and cashier of T he F irs t N ational B ank of Chicago, died recen tly at th e E v an s ton H ospital. He en tered th e b an k in 1904, and w as elected a ssistan t cashier in 1919, a ssistan t vice p resid en t in 1923, vice p resid en t in 1926, and, in addition, becam e cashier in 1944. H e w as born in Chicago, October 25, 1888. Mr. Stake took a pro m in en t p a rt in Chicago civic and business affairs, notably th e C om m unity F u n d and Boy Scouts. He w as tre a su re r of th e Chi cago Board of Trade, and a m em ber of th e executive com m ittee of the D ow ntow n Council. Mr. Stake w as a m em ber of th e Com m ercial, U nion League, B ankers, Chi cago A thletic, Econom ic, Skokie Coun try , an d Mid-Day Clubs. He also w as a p ro m inent Mason. EMIL A. STAKE x Surviving are his widow, Clara M., a daughter, Ju n e Doris, a son, A rth u r Frederick, his m other, Mrs. W illiam Stake, and a b rother, E rn e st W. The N orthwestern B anker asked L ouis H. N orthrop, a ssistan t vice pres- Financial Advertising Men at Lunch Jam es F. M cPherson, cashier of th e City N ational B an k and T ru s t Com p an y of K ansas City, w ith w hom w e h ad lu n ch a t his b an k recently, told us th a t th e y had 58 boys in th e service from his in stitu tio n . T aylor S. A bernathy, vice p resid en t of th e F irs t N ational B ank of K ansas City, p re se n ts one of th e m ost in te r estin g b a n k statem en ts in th e country. H is b a n k h as a capital stock (paid in) of $250,000, and w ith th is original in v e stm e n t th e b an k h as earn ed an ad ditional am o u n t of $7,749,000, w hich is now re p re sen te d by th e ir capital, su rp lu s an d undivided profits account. T he to ta l deposits are over $215 m il lion. General V ictor A. Y akhontoff, m em b e r G eneral Staff R ussian A rm ies in W orld W ar I, w as th e prin cip al sp eak er a t th e K ansas City R otary Club, w hich we a tten d ed recently, and th e G eneral pointed out th a t R ussia w as really helping th e U nited States in its fight ag ain st Ja p a n by im m obi lizing ab o u t one m illion Jap an ese troops along th e M anchurian b o rd er in o rd er to p re v e n t an y an ticip ated invasion w h ich R ussia m ig h t m ake a t th is point. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D uring th e recent m eeting of th e F in an cial A d v ertisers A ssociation a t the E d g ew ater Beach H otel in Chicago, those enjoying a square m eal a t the round table, read in g from le ft to rig h t in th e foreground, are: Daniel J. Healy, M et ropolitan T ru st Company, Chicago; Marvin K. Brown, H e arst A dvertising Serv ice, Chicago, and Julius K. Waibel, a d v ertisin g counsel, C ontinental Illinois N atio n al B ank & T ru st Company, Chicago. In th e background, from le ft to rig h t around the tab le, beginning a t th e le ft of Mr. H ealy, is Ralph W. Moorhead, associate publisher, N o r th w ester n B a n k er ,, Des M oines; M. W. Petter, a ssista n t cashier, E m pire N a tio n a l B ank & T rust Company, St. P a u l; Clifford De Puy, publisher, N o r th w ester n B anker ,, Des M oines; Emerson De Puy, N av y V-12, Ames, low n; R. W. Dawson, A lbert F rankG uenther Law , Inc., Chicago, and Frank J. Reynolds, A lb ert F rank-G uenther Law , Inc., New York. Northwestern Banker January Í9b5 22 Letters to Bank Customers V Are an Effective Good Will Builder E W E R E organized in N ovem ber of 1920, w ith a capital of $50,000, and a su rp lu s of $7,500 in direct com petition w ith an old es tablished in stitu tio n th a t h ad been in business for fo rty years. W e are located in a stric tly ru ra l com m unity w ith a population of 1,200. T here are eight banks in th e county, and th e county seat is 12 m iles away. W e have no large in d u stries or fac tories of any k ind w ith th e exception of a sm all tom ato cann in g factory th a t operates about tw o m onths d u rin g the year. X Upon organizing, we selected the nam e of “The R ockford N ational B ank,” w hich w as a d irect appeal to th e people of Rockford, and th e su r ro u n d in g com m unity. W e selected as our slogan “Service Plus C ourtesy,” and trie d in every w ay possible to conduct our business to com ply w ith our slogan. W e have al w ays im pressed upon o u r help th e im portance of applying th e “Golden R ule” w hen dealing w ith th e public. W e had a slow b u t steady grow th, and in A ugust, 1930, we w ere able to tak e over our com petitor. W Advertise certain occasions th a t w e established about four y ears ago, has been our m ost effective m eans of ad v ertising and good w ill builder. As w e stated in th e beginning, we are located in a sm all tow n in a strictly ru ra l com m unity w here everyone is w ell know n. Possibly our plan w ould n ot w ork so w ell in th e larg er cities, b u t for our sm all tow n, we have found it to be suc cessful, and our custom ers v ery ap preciative. W e know we have gained favorable publicity. W e call our plan “Say it w ith le tte rs.” T here are alw ays events h ap p ening in our com m unity such as deaths, w eddings, b irths, new com ers, g rad u ates, and sickness. Im m ediately upon h earin g of th ese happenings, we send them a letter; a copy for each occasion is herew ith enclosed. The plan is inexpensive, not m uch detailed w ork is necessary, v ery easily conducted; th e letters are w ell re ceived, and a great deal of good w ill publicity is obtained. H ere is th e w ording of several of th e letters w hich go out to our custom ers and prospects. F o r several y ears w e used to give aw ay at C hristm as a v e ry expensive a rt calendar. T h en we changed to pocket-books, b u t too m an y people called for th em w ho w ere n ev er in our b ank before, w hich m ade it ra th e r ex pensive. We have also given aw ay to W e used to ru n a different ad in our local new spaper every week, b u t our editor is now in th e arm ed forces, and his p rin tin g office is closed for th e d u ra tion. In fact, we have tried m any different w ays of ad v ertisin g du rin g the p ast tw enty-four y ears I have been cashier of The R ockford N ational Bank. One n ev er know s the am ount of good w ill established by th e different modes and m ethods of advertising. How ever, we sincerely believe th a t our plan of direct m ail to certain individuals upon “W e are pleased to w elcom e y ou to our com m un ity and to n um ber you w ith our m any good citizen s.” “W e w ish you to k n ow the person nel of th is B ank ex p resses its sy m pathy and condolence to you and fam ily at this sad hour.” “Officers of th is In stitu tio n con gratulate you upon you r graduation and exp ress th e w ish that th ese years of train in g m ay guide you into a career of gen u in e SUCCESS.” “M ay the baby w ho has com e to live w ith you be a b lessin g to you through out you r life.” N EW S A N D V IE W S E m il’s blood pressu re w as v ery high, and his death occurred.” N orth D akota w hite clover honey. F red says th a t regardless of th e C. I. O. or A. F. of L. th e bees pay no a t ten tio n to th e 40-hour w eek and w ork overtim e w ith o u t ex tra pay. W e have on our board of directors five of th e leading business m en in our tow n w ho tak e an in te re st in being a director, th u s cooperating in every w ay possible w ith th e cashier in conducting th e business of th e bank. ident, F irs t N ational B ank, to tell us a little som ething about th e cause of Mr. S tak e’s death, and in a le tte r to us Louis said, “Em il, several w eeks ago, w ent hom e a p p a ren tly suffering from a stiff neck and a headache. T his la te r on developed to such an ex ten t th a t he suffered a cereb ral h em o r rhage. H is doctors took him to th e E v an sto n H ospital, w h ere every m edical care w as given him , an d ap p are n tly th e y th o u g h t th a t, w ith re st and p ro p er care, he w as on th e road to recovery. B ut com plications set in; Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19J5 By O . L. Disher C ashie r Rockfo rd National Bank, Rockford, Ohio O. L. D isher and d aughter, S au n d ra Lee th e school children, at th e beginning of th e school year, pencils and rulers. R. J. Bushm an, a ssistan t vice p resi dent, U nion N ational B ank in K ansas City, M issouri, w ho has been w ith his in stitu tio n for 24 years, sta rte d his b an k in g career in Alden, Iowa. The U nion N ational, of w hich George R. H icks is president, has deposits of over $58 million. F red A. Irish, chairm an of th e board of th e F irs t N ational B ank of Fargo, N o rth Dakota, rem em bered us again th is y ear w ith a ja r of th e ir fam ous Fred M. Staker, vice p resident, Com m erce T ru st Company, K ansas City, invited us to have lunch w ith him at th e U n iversity Club w hen we w ere in K ansas City. W hen F re d cam e w ith th e Commerce T ru st Com pany 33 y ears ago, th e deposits w ere $6 m illion and since th a t tim e th ey have grow n to over $375 million. (T u rn to page 78, please) OUR 50th YEAR À y V * 23 STATEMENT O F CONDITION Decem ber 31, 1944 RESOURCES Loans and D iscounts.................................. ................................................. $ 14,770,057.75 412.26 Overdrafts ...................................................... ................................................. State and Municipal Bonds...................... .................................................. 10,491,004.86 2,158,258.23 Other Bonds Bought for Investment. . .................................................. 12 0 , 00 0. 00 Stock in Federal Reserve Bank................ ................................................................ 499,000.00 Bank Office Building.................................. .................................................. 1.00 Furniture and Fixtures.............................. .......................................................... 352,745.48 Income Earned But Not Collected.......... ................................................. Bonds of United States and Government A gencies___ $75,794,862.81 Due from Federal Reserve Bank.......... ........................ 20,739,229.00 ........................ 23,573,646.22 120,107,738.03 Cash and Sight Exchange................... $148,499,217.61 LIABILITIES Capital Stock ................................................................................................... $ 2,000,000.00 Surplus ................................................................................................................ 2,000,000.00 Undivided Profits ........................................................................................... 1,197,390.88 Reserve for Contingencies............................................................................. 525,904.87 Accrued Taxes, Interest and Other Expenses..........•......................... 223,305.34 Dividends Declared and Unpaid.................................................................. 40,000.00 Deposits ........................................................................................... 142,512,616.52 $148,499,217.61 M em ber F e d e ra l D e p o sit In su ra n c e C o r p o r a t io n OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 19J5 W hat W ill Deposits Be W hen the Debt Is 300 Billion 1. Deposits may increase 60 per cent over Jan uary. 1944, or to $174 billion. 2. Make your own esti mate for your bank using the figures shown here. By P. R. Easterday Chairman of the Board The First National Bank of Lincoln, Nebraska PHIL R. EASTERDAY “—we found it intriguing.” ARTLY for recreatio n and p artly in seriousness, these tables show n w ith th is article, w ere recen tly p re p ared for th e purpose of obtaining some idea as to w h a t figure com m er cial b ank deposits m ig h t reach at th e “p ea k ” date, if and w hen g o vernm ent bonds totalled 300 billion dollars. The projection w as carried far enough to include a re a d ju stm e n t of bond hold ings by “all o th ers,” also an increase in com m ercial loans, and also a re tu rn tow ard norm alcy of the outstan d in g large am o u n t of circulation. An allow ance is also m ade for a possible credit from salvage. The projection produced th e s u r prisin g to tal for deposits of 174 billion dollars—60 p er cent m ore th a n th e to tal of 106 billion as of J a n u a ry 1, 1944, and 50 p e r cent m ore th a n the rep o rted total of 114 billion for Ju n e 30, 1944 W e doubt if th e average b an k er fully appreciates th e su b stan tial rise in th e deposit level y et to come. M aybe som e N o r t h w e s t e r n B a n k e r read ers w ill doubt th is increase. L et them go over th ese tables and m ake th e ir ow n calculations, and it is m y guess th a t in the m ajo rity of cases an y change m ade w ill re su lt in a larger, ra th e r th a n lesser, increase in deposits. A ssum ing th is p ercentage increase to be correct, of course no b an k er should n ecessarily assum e th a t his in stitu tio n will get its full proportion of th e additional deposits, as th e re will doubtless be sh iftin g to different locali ties. H ow ever, to th e ex ten t th a t any in stitu tio n increases less th a n th is percentage, n a tu ra lly some o th er in stitu tio n a t some o th e r locality will increase ju s t as m uch more. (T u rn to page 49, please) P Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^5 GOVERNM ENT BOND HOLDINGS (In m illions) 1-1-44 O utstanding Govt. Bonds In Govt. Agencies ............ In public hands (1) Bonds held 1-1-44 Comb B anks $ 60,600 Fed. Res. Banks; 11,500 $ M utual Sav. Bks. Ins. Com panies All others • After salvage of $25,000 from War plants, equipment At peak and supplies $168,700 —16,900 $300,000 —30,000 $275,000 —30,000 . $151,800 $270,000 $245,000 (2) (3) (4) Subsequent adjustments Additional between banks Final, after Purchases and “all others” readjustment $25,000 8,000 72,100 6,100 14,700 58,900 4,000 8,000 48,200 $151,800 $93,200 +$25,000 —25,000 $110,600 19,500 $130,100 10,100 22,700 82,100 $245,000 T H E B A N K IN G SITU A TIO N (In m illions) (A) 1-1-44 (B) (C) (D) After $50,000 increase in bond holdings and corresponding deposit increase After $10,000 loan expansion and corresponding deposit increase After $8,000 decrease in currency holdings and corresponding deposit and cash increase Govt. Bonds Loans O ther securities Cash reserves. O ther assets $ 60,171 19,199 6,179 27,816 1,730 $110,171 19,199 6,179 27,816 1,730 $110,171 29,199 6,179 27,816 1,730 $110,171 29,199 6,179 35,816 1,730 Deposits O ther liabilities Capital accts. $115,098 106,619 707 7,771 $165,098 156,619 707 7,771 $175,098 166,619 707 7,771 $183,098 174,619 707 7,771 $115,098 26% $165,098 $175,098 R eserves ............ $183,098 20% OUR 50th YEAR 25 Z /te LIVE STOCK tA a/icw ict/ BANK o f U N I O N S T O C K YARDS • T E L E P H O N E YA R D S 1 2 2 0 i/f o tfe tn e v il o f ^ c s n c lifa m December 30, 1944 R E S O U R C E S Cash a n d due fr om b a n k s ......................................... $ 1 6 , 8 9 6 , 7 9 1 . 0 1 U. S. T r e a s u r y bills a n d certificates..................... 1 7 , 0 0 0 , 0 0 0 . 0 0 U. S. G o v e rn m e n t b o n d s an d n o t e s .................... 9 ,0 9 0 ,7 0 0 .0 0 State a n d m u n ic ip a l s e c u ritie s ................................ 170,304.15 O t h e r m a r k e t a b l e b o n d s ........................................... 567,447.90 L oa ns a n d d i s c o u n t s ................................................... 7,821,890.07 Federal R es e rv e B a n k s t o c k ..................... .............. 7 5,000.00 B a n k b u i l d i n g ............................................................... 375,000.00 In te re s t e a rn e d , n o t c o lle c te d ................................. 7 9 ,4 9 9 . 3 2 C u r r e n t receivables a nd o t h e r a s s e ts ................... 103,165.60 $52,179,798.05 L I A B I L I T I E S C a p i t a l ...............................................................................$ 1 , 0 0 0 , 0 0 0 . 0 0 S u rp lu s .............................................................................. 1,500,000.00 U n d iv id e d p ro fits a n d re s e rv e s .............................. 2 1 1 ,1 8 9 -6 8 U n e a r n e d d i s c o u n t ...................................................... 28,844.98 D e p o s its ................................ 4 9 ,4 3 9 ,7 6 3 .3 9 $52,17 9,798.05 Fr e d e r ic k H. P r in c e A r t h u r G. Le o n a r d President, Union Stock Yard & Transit Co. R o b e r t J. D u n h a m Investments W il l ia m J. O ’C o n n o r General Manager, Union Stock Y a rd & Transit Co. R IC H A R D H A C K E T T General Manager, Central Manufacturing District R alph m . Sh a w Winston, Strawn & Shaw O r v is T . H enk le T h o m a s E. W il so n Chairman of the Board, Wilson & Co., Inc. D a v id H. R eim ers President, The Live Stock National Bank of Chicago SERVING AGRICULTURE AND INDUSTRY fjftn ce 4 8 6 8 ME MBE R OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis F E D E R A L D E P O S I T I N S U R A N C E f C O R P O R A T I O N Northwestern Banker January 1945 Does Endorsement by Other Than Payee A lw ays Constitute a Forgery? LAMP signed a dem and note in Iow a in 1927 payable to a sav ings b ank there. In 1934 th e b ank w as placed in receivership and th e note w as held as p a rt of th e assets. The receiver held th e note u n til 1942 w hen it w as sold to Taylor. T aylor sued th ereo n in 1943. Clamp defended on th e g round th a t the 10 y e a r sta tu te of lim itations had run. W as th e defense good? C Yes. A note payable on dem and is payable upon the date of its execu tion and is barred by the statu te of lim ita tion s in 10 years in Iow a. C onse q uently, the on ly problem here w as w h eth er the statu te con tinu ed to run w h ile the bank w as in receiversh ip. In a recent d ecision on the m atter the Iow a Suprem e Court held that it did not, and in doing so, pointed out that p reced en ts for its action ex ist in Illi nois, Texas, Georgia and M assachu setts. Oklahoma holds to the con trary. A n u m b er of b an k s in W isconsin agreed to indem nify an o th er b an k for losses it m ight su stain if it assum ed th e liabilities of a th ird b an k th e n ex periencing a heavy ru n d u rin g the panic of 1931. S ubsequently th e b anks th a t agreed to indem nify refused to m ake good th e losses on th e ground th a t th e co n tract en tered into by them w as u ltra vires. Should th e y be su s tain ed in th is position? No. A bank, like any other corpora tion, lias the right to m ake any con tract n ecessary to effect its purpose, or to conduct its b u sin ess, and, in the circum stance in volved , the in dem n i fy in g contract w as not ultra vires. The W isconsin Suprem e Court so held in a recent decision. B arb erto n signed S tillw ater’s nam e, as indorser, to certain checks in M in nesota, obtained th e funds due th e re on, and used such funds to buy gro ceries for Stillw ater. He h ad not been specifically authorized to affix Still w a te r’s sig n atu re to th e checks and, in doing so, he had no in ten tio n to de frau d Stillw ater. A ctually he spent every cent received for groceries for S tillw ater and S tillw ater accepted th em w ith full know ledge of th e Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19^5 This and Other Timely Legal Questions Are Answered By the L E G A L D EP A R TM EN T source of the funds used in the p u r chase. In such circum stances did S tillw ater ratify the indorsem ent. Yes. A n unauthorized sign ature on a note, check or other in stru m ent under circum stances not co n stitu tin g the crim e of forgery m ay be ratified. M innesota, Indiana, T exas, W isconsin and other sta tes have so held. Since there w as no in ten t to defraud there w as no crim e of forgery and the ac ceptance of the groceries w ith full k now ledge of the m eans used to obtain the funds therefor con stitu ted a rati fication by S tillw a ter of the use of his sign ature by Barberton. P ackard w as a reg u lar em ploye of a light com pany ow ned by a banker. He w as inducted into th e U. S. A rm y and th e re a fter w as honorably discharged on Ju n e 1, 1942. On th e sam e day he asked his form er em ployer to give him back his job. He w as en titled to the job, b u t his em ployer failed to give it to him u n til October 1, 1942. Could P ack ard recover th e salary he w ould have earned du rin g the four m o n th s’ delay? Yes. U nder federal la w any person inducted in to th e A rm y w h o has been honorably discharged and w ho has left a p osition other than a tem porary p osition and w ho is p h ysically fit and still qualified to perform the duties of such position, and m akes application for reem p loym ent w ithin forty days after his release from m ilitary service, is en titled to be restored to his form er position. A s an in cid en t th ereto such person is to be com pensated for any loss of w ages or benefits in the even t his em p loyer does not observe the law . A building and loan association w as indebted to Jo h n Russell. He dies. To satisfy th e indebtedness, th e asso ciation issued a check calling for pay m ent to th e order of “E state of Jo h n R ussell.” AVas th e legal effect of this to m ake th e check payable to a ficti tious person and th erefo re payable to bearer? The a n sw er to th is question w ould be y es in M innesota, M issouri, M issis sippi and Georgia and no in Iow a, M ichigan, Illinois, K entucky and P en n sylvan ia. T his difference in holding arises because of va ry in g in terp reta tion s by the courts of the N egotiable In strum ents Law. Those h olding in the affirm ative adopt a strict in ter pretation of the w ording of the sta t ute. T hose h olding in the n egative hold that the obvious in ten tion of the m aker should control. Probably the m ost recent decision by a state court w here the m atter w as one of first im pression w as in P en n sy lv a n ia w here the latter v ie w w as adopted. Hill, a banker, had a m inor daugh ter. The m inor d au g h ter negligently dam aged certain p ro p erty belonging to a neighbor. In th e absence of a sta tu te to th e co n trary w as H ill liable for th e damage? No. It is w ell settled under com mon law th at a p arent is liable for the torts of his child only on such grounds as w ould m ake him liable for the torts of any other person. The m ere relationship of p arent and child is not sufficient to hold the parent liable for torts com m itted by his child in th e absence of a statu te to the contrary. R eferring to th e preceding question and assum ing no sta tu te to th e con trary , w as H ill’s m inor dau g h ter liable for the to rt com m itted by her? Yes. In fan ts are liable for torts com m itted the sam e as adults w here there is no statu te to the contrary. Suppose in th e second preceding question H ill has agreed v o lu n tarily to pay th e neighbor for th e dam age and subsequently refused to do so. Could th e neighbor recover from H ill on breach of con tract to pay? No. W here a child has com m itted (T u rn to page 28, please) OUR 50th YEAR 27 CENTRAL HANOVER BANK AND TRUST NEW COMPANY YORK S tatem en t of C o n d itio n , D ecem ber 31, 1944 TRUSTEES ASSETS Cash and Due from B a n k s ....................................... $ 307,584, 295.27 Louis S. Cates U. S. Government Securities........................................... 1 , 166, 188,821.64 Colby M . Chester State and Municipal S ecu rities.................................. 2 1 ,239,795.15 Jo h n B. Clark Other S ecu rities........................................................... 28,089,540.90 Jarvis Cromwell Loans and Bills Purchased.................................................. 377, 122 ,740.24 Bernard M. Culver Real Estate Mortgages................................................. Banking H o u s e s ........................................................... 13 ,600,008.00 Interest A ccrued........................................................... 3,880,403.86 G eorge W . Davison Johnston de Eorest 2,629,426.16 .1 ,402,079.08 Customers’ Liability Account of Acceptances . . T h o m a s Dickson Total $ 1 ,921 ,737, 110.30 W a lte r G. D unnington W illiam A. Eldridge W illiam F. C. E w ing Robert L. G erry W illiam S. Gray, Jr. G eorge M . Moffett J o h n K. O lyphant, Jr. Benjamin O ’Shea Eustis Paine Auguste G. Pratt Lucius F. Robinson, Jr. LIABILITIES C a p ita l..................................................$2 1 ,000,000.00 S u rp lu s ................................................ Undivided Profits.................................. 60,000,000.00 29,210 , 173.27 $ 110 ,210 , 173.27 Reserves: 'Faxes, Interest, etc................................................. 8,028,094.30 Dividend: Payable January 2 , 1 9 4 5 .................................. 1 ,050,000.00 A c c e p ta n c e s................................................................ 1 ,539, 131.68 Deposits............................................................................. 1 ,800,909,711.05 Total $ 1 ,921 ,737, 110.30 John P. Stevens, Jr. H enry P. T u rnbull There are pledged to secure public monies and to qualify for fiduciary powers W illiam W o o d w a rd U. S. Government Securities .................................................$ 513 , 276, 144.21 MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 19J5 28 T H E H A M M E R M I L L Irving Trust W a r Loan Display C O L U M N According to generally accepted esti mates, th,e banks in this country handled more than ten billion checks in 1944! T h at’s more than double the number handled in 1938. One customer alone, your Uncle Sam, needed around 500 million checks to m eet his payroll. ★ ★ ★ Y et the banks shouldered this staggering responsibility as a matter o f course. They asked for no special commendation. A n d the public ju s t took it for granted that their billions o f checks would be cashed, de posited, or transferred speedily, safely and accurately. ★ ★ ★ A t that, perhaps this is the finest tribute bankers could wish. I t’s a silent expression o f trust more eloquent than any testimonial. B u t when we realize that nearly every one o f those ten billion checks was handled by as m any as three banks— sometimes more— we can see that the number o f trans actions involved soars to astronomical proportions. ★ ★ ★ Which brings to mind the case history of just one of those checks, uncovered in a survey made by Hammermill among bankers. It was one of those “headache checks” you are all too familiar with. The amount of this check was coyly tucked away in the upper right-hand corner. T he rate of p a y was where the amount should have been. ★ ★ ★ I n the first bank that handled this little beauty, it caused four hours o f extra work. I n the second bank that received it, fifteen more hours were wasted. I n the third bank, this same check was responsible for forty hours of extra labor! Fifty-nine hours of lost time. More than a full week’s work for one employee! ★ ★ ★ Fourteen such examples of badly designed checks, taken right out o f actual use, have been p u t together by H am m erm ill in a com pact little book called “ B U S I N E S S C H E C K S — their proper planning and design.” ★ ★ ★ And a modelcheck is shown giving the “8 essentials o f good check design.” These are based on interviews with many bankers, and conform to the specifica tions approved by A.B.A. ★ ★ ★ If you do not h a v e a copy of “ BUSINESS CH ECKS,” w e b e lie v e yo u m ay find it helpful in m eeting th e “ h e a d a ch e ch e ck ” problem . If yo u ’d lik e a co p y , dro p us a lin e . You’ll not b e b o thered b y “ follow u p .” No salesm an w ill call. Ham m erm ill P a p e r Co ., Erie , P a. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January Í9J5 1 i A fe a tu re d Sixth W ar Loan display on view in the F ifth Avenue Office of Irv in g T ru st Company, New York, w as th is A rm y A ir Force F ive M an R aft. The r a f t is m ounted a g ain st a p illar and a large photo of a rescue a t sea from one of these ra fts is on th e floor of the ra f t behind th e seat. Above the r a f t in a large w hite cloud effect is a w ar bond appeal. Its full equipm ent was displayed around the r a f t on a long tab le draped w ith blue cloth and decorated w ith w hite n au tical rope. E ach item was identified and briefly described by le tte re d cards. Spotlights illum inated the entire exh ib it from above. LEGAL QUESTIONS vided the price w as fair at the tim e it w as established. (C ontinued from page 26) T he U nited States governm ent u n d er th e a u th o rity of th e Second W ar Pow ers Act, condem ned p a rt of a w arehouse leased by H orton and used by him to m anufacture, store and d istrib u te b an k m achines, equipm ent, and supplies. Some five w eeks w ere sp ent in rem oving H o rto n ’s p ro p erty and m uch of th e special equipm ent used on th e prem ises w hich could not be m oved had to be destroyed. In determ ining fair com pensation for th e condem nation, should th e ju ry consider th e m oving expense and th e loss resu ltin g from th e dem olition of some of th e equipm ent? a tort and the parent su b seq u en tly p rom ises to pay for the dam age done, the parent is not liable for breach of contract if he later refu ses to pay. Such a prom ise is m ade w ith o u t con sideration, and no valid contract is created. W ilson dies ow ning 1000 shares of stock in a closed corporation th a t he h ad acquired tw en ty y ears before at $100 p er share, th e fair m ark et value a t th a t tim e. As an incident to th e acquisition of th e stock W ilson g ran ted to th e corporation an option to p u r chase it at any tim e w ith in 50 years at th e $100 per sh are price paid by him . W hen W ilson died, stock in the corporation not involved by any p u r chase option w as valued a t $500 per share. Should W ilson’s stock be v al ued at $100 p er sh are for federal es ta te tax purposes? Yes. W here the stock of a decedent in a closed corporation or his in terest in a b u sin ess as a partner is su bject at his death to an agreem en t of sale or to an oth er’s leg a lly binding option to purchase at a fixed price, the fair m arket v alu e for federal estate tax purposes is lim ited to such price, pro Yes, according to a recent F ederal Circuit Court of A ppeals decision. The general rule is that the fair mar k et v alu e of the property confiscated is to be paid in condem nation proceed in gs. U nder th is gen eral rule th e courts in the earlier d ecision s in m any in stan ces allow ed com pensation for on ly the fair m arket value of the bare real property taken. T his strict a tti tude has been gradually relaxed in recent years and the d ecision m en tioned herein rep resen ts a liberal, for ward step in p lacing condem nations in as good a p osition as if their prop erty had not been taken, w hich ap pears proper. OUR 50th YEAR I \ 4 V 29 ★ ★ A n o th e r le a d in g b a n k u sin g H a m m e r m ill S a f e t y This attractive wrought iron doorway is one ties. Founded in 1812, The Pennsylvania of the architectural treasures of Philadelphia. Company is one of the great financial estab It frames the entrance to the main banking lishments in the United States. W e are room of The Pennsylvania Company for , proud that this bank uses Hammermill Insurances on Lives and Granting Annui- MANUFACTURED https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BY H A M M E R M I L L Safety for its customers’ checks. PAPER COMPANY, ERIE, PA FOUNDED 1898 30 i WE INVITE ACCOUNTS FROM BANKS, CORPORATIONS AND IN D IV ID U A L S • SEND US YO U R PA CIFIC CO A ST B U S IN E S S MEM BE R F E D E R A L RE SE R VE S YS T EM & F E D E R A L D E P O S I T I N S U R A N C E d 'anJenjeÂ<~>tatewien,t aj CORPORATION 30,1944 RESOURCES Cash and Due from Banks...................................................... United States Government Securities..................................... Obligations of Other Federal Agencies . . . $1,768,867.19 State,County and Municipal Bonds........... 3,827,063.92 Other Bonds and Securities....................... 1,437,745.29 Stock in Federal Reserve Bank................................................. Ownership of California Trust Company............................... Loans and D iscounts............................................................... Bank Premises, Furniture and F ixtures.................................. Income Earned, N ot C ollected.............................................. Customers’Liability under Letters of Credit and Acceptances . Other R esources..................................................................... T o t a l ...................................................................................... $ 88,895,097.45 269,275,801.31* 7,033,676.40* 300,000.00 1,475,324.661 53,226,468.37 895,885.88 837,135.65 402,665.25 98,189.00 $422,440,243.97 LIABILITIES Deposits: D em and....................................... $253,733,981.06 T im e........................................... 114,828,886.07 United States War Loan Deposit. 39,026,940.93 Other Public Funds................. 628,199-81 Reserve for Interest, Taxes and Expenses............................... Income Collected, Not E a rn e d .............................................. Letters of Credit and Acceptances........................................... 800,000.00 Capital: Preferred........................................ Common ..................................... 5,000,000.00 Surplus......................................................... 4,200,000.00 Undivided Profits..................................... 2,990,503.67 T o t a l ...................................................................................... $408,218,007.87 576,573.77 216,748.67 438,409.99 12,990,503.67 $422,440,243.97 ■*$41,856,203.13 pledged, according to law, to secure Public Funds and Trust Deposits. 1California Trust Company (owned by California Bank and devoted exclusively to trust service) has Capital of $1,000,000.00, Surplus of $500,000.00 and Undivided Profits of $236,233.05. OFFICERS A RCH W. A N D E R S O N , President Q uestion : W hat is yo u r opinion o f the business prospects in yo u r c o m m u n ity fo r 1945? P. N. Johnson, president, F arm ers State Bank, Crosby, N orth Dakota: “B usiness for 1945 should be good, providing goods can be had. It should be exceptionally good if we again produce crops as we have th e p ast four years. B ut crop or no crop, our people here have sufficient m oney on hand to insure good business condi tions for at least one y ear.” J. A. K ueera, cashier, C larkson Bank, Clarkson, N ebraska: “I th in k th a t business in our com m unity w ill be good in 1945. It w ill com pare very favorably w ith th e business condi tions in 1944. Our belief is based on th e fact th a t our corn crop has been above average and th a t prices of farm products are stable and are in keep ing w ith th e production costs. The farm ers have reduced th e ir debts to a low level and practically everyone owns U. S. savings bonds w hich will serve as a good cash reserve and w ill take care of people’s needs w hen o th er cash is unavailable. T here is also m uch m ore livestock on th e farm s, especially m any m ore cattle in feed lots th an in previous y ears and these cattle w ill be m arketed du rin g 1945. F o r these reasons we expect good business th ro u g h o u t the w hole y ear.” J. H. N elson, cashier, Citizens N a tional Bank, C harles City, Iowa: “I th in k business prospects for 1945 in th is com m unity are very good.” F R A N K L .K I N G , Executive Vice-President Senior Vice-President Vice-President and Counsel ALLAN H A NCOCK CHAS. E. D O N N ELLY Vice-Presidents ARTHUR T. BRETT C. C. D e PLEDGE W. W AYNE GLOVER F. S. H A N SO N T. E. IVEY, JR . F. M. MAGEE H. J. M E N D O N F. H O W A R D RU SS, JR . J. A. S H IN E W. F. B R A N D T H. E. H U D S O N J. G. M A U L H A R D T B. B. O D ELL Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January t9b5 H. E. Sw edburg, cashier, The Com m ercial S tate Bank, Clay Center, N e braska: “W e believe th a t general busi ness prospects for th is y ear in our com m unity w ill be som ew hat b e tte r th a n in 1944. T his prediction is based on th e prospect of m ore farm m achin ery available to th e farm ers—o th e r w ise business w ill probably be about th e sam e.” OUR 50th YEAR 4 * V Bankers T rust Company NEW YORK CONDENSED STATEMENT OF CONDITION, DECEMBER 31, 1944 A S S E T S Cash and Due from B a n k s ...................................... §> 3 1 2 ,5 2 5 ,1 6 7 .2 0 U. S. G overnm ent S e c u r it i e s .................................. 1 ,0 5 9 ,5 6 9 ,2 4 1 .3 5 Loans and B ills D i s c o u n t e d .................................. 4 4 4 ,9 3 1 ,3 4 3 .4 7 State and M unicipal S e c u r i t i e s .............................. 9 ,6 4 6 ,5 2 3.19 O ther Securities and I n v e s tm e n ts .......................... 4 7 ,8 5 5 ,6 4 4 .2 8 Real Estate M o r t g a g e s ............................................... 2 8 6 ,6 6 4 .8 6 Banking P r e m is e s ........................................................ 1 5 ,5 4 8 ,8 3 3 .6 4 Accrued Interest and A ccounts R eceivab le. . . 5 ,4 3 3 ,4 8 4 .9 3 C ustom ers’ Liability on A c c e p t a n c e s ________ 9 7 8 ,4 3 4 .8 4 $ 1 ,8 9 6 ,7 7 5 ,3 3 7 .7 6 L I A B I L I T I E S C a p i t a l ...........................................$ 3 0 ,0 0 0 ,0 0 0 .0 0 S u r p lu s ........................................... 8 0 ,0 0 0 ,0 0 0 .0 0 U ndivided P r o f i t s ..................... 2 7 ,3 4 4 ,8 7 1 .1 3 D ividend Payable January 2, 1945 $ 1 3 7 ,3 4 4 ,8 7 1 .1 3 ........................ 8 7 5 ,0 0 0 .0 0 D e p o s i t s ......................................................................... 1 ,7 2 6 ,0 7 3 ,5 5 6 .5 3 B ills P a y a b le ....................................... Accrued Interest, 2 4 ,0 0 0 ,0 0 0 .0 0 T axes, etc..................................... A cceptances O utstanding 5 ,4 0 3 ,8 1 6 .9 0 . . $ 1 ,0 0 5 ,9 3 7 .4 0 Less Am ount in P ortfolio . _____2 5 ,4 2 5 .2 5 9 8 0 ,5 1 2 .1 5 O ther L ia b ilitie s ............................................................ ........... 2 ,0 9 7 ,5 8 1 .0 5 $ 1 ,8 9 6 ,7 7 5 ,3 3 7 .7 6 Securities in the above statement are carried in accordance with the method described in the annual report to stockholders, dated January 13, 1944. Assets carried at $634,040,925.27 have been deposited to secure deposits, including $583,022,892.44 of United States Government deposits, and for other purposes. Member o f the Federal Deposit Insurance Corporation OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 19b5 SOCIAL SECURITY a blow at mankind’s ancient enemy I n J a n u a ry 1937, this com pany, in its national advertising, welcomed Social Security to the A m erican scene. W e felt then, as now, th at through this law the nation had struck a telling blow at an age-old and dangerous enem y—destitution. Social Security is not yet a perfect instrum ent, but the ingenuity and common sense of the A m erican people should steadily improve it. We look forward to the day when a blanket of basic protection will cover every A m erican family. This will cost money. For Social Security is paid for by taxes, which do not themselves create wealth, but come from w ealth created by the people. O nly the savings and labor, the ingenuity and enterprise of an energetic, productive nation make Social Security possible. But such a nation can gladly assume its cost, in the conviction th at a decent country must somehow m aintain m inim um living standards for all its people. As we see it, Social Security is a proper instrum ent of a dem ocratic society, by which it protects itself against the destructive effects of poverty. Life insurance, on the other hand, is an instrum ent of the individual, by which he lifts his family as far above society’s m inim um standard as his own industry, intelligence and enterprise perm it. This is in the A m erican tradition: For all the people, the things the nation needs—broader education, growing vision and understanding, assurance of the basic essentials of decent living. For the individual, the thing the individual needs—freedom to learn and earn as m uch, to go as far and as fast as he can and will. In eight years since Social Security became a fa ct, American life insurance has shown substantial growth. This company, fo r example, now serves over 25% more policyholders than in 1937; the volume o f protection it gives them and their fam ilies is nearly 50 % greater. In these eight years it has paid over $53,000,000 to policyholders and beneficiaries. Contingency reserves and surplus funds beyond legal requirements now stand at a record high; lapses are lowest in N wN I i s 60-year history. A s in past years N wN L 's complete financial statement, issued on New Year's Day, was the first to be published in 1945. Copies are available on request. N o r t h w e s t e r n D V a ilm u il L i fe insurance O . J . A r n o l d , President COMPANY M i n n e a p o l i s 4, M i n n . Fhis is a reproduction of N w N L ’s current national advertisement. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 90 BÌHÌOllFire Insurance in Force Coverage in This Country Stands at New Peak, W ith Greatest Volume O f Such Protection Ever Pledged to the American Public IR E in su ran ce in force in th is coun try now stan d s a t a new peak of $90,000,000,000', th e g re a te st volum e of such pro tectio n ever pledged to th e A m erican public and w ell over tw ice th e fire co n tracts in existence at th e end of th e F irs t W orld W ar, it is pointed o u t in The In d ex, q u a rte rly publication of T he N ew Y ork T ru st Com pany. B ut since 1921, says th e analysis, th e average cost of th is form of in su ran ce to policyholders h as de clined about 40 p e r cent. T he re p o rt covers th e histo rical de v elopm ent and financial g ro w th of th e 372 cap ital stock fire com panies who, m easured by prem iu m s collected, p ro vide about th ree-q u arters of th e p ro p e rty in su ran ce in th e ir fields. “A significant com m entary on fire in su ran ce m anagem ent,” states The I n dex, “is th e fact th a t th e com panies h av e m ain tain ed a h ig h degree of di versification and u n u su a l liquidity in th e ir invested assets. A t th e end of 1943, an average of appro x im ately 42 p e r cen t of to tal assets w as invested in stocks by 135 re p re se n ta tiv e com pa nies, as com pared w ith 39.5 p er cent in bonds, such in v estm en ts conform ing w ith sta te re g u la to ry req u irem en ts. I n cluded in th e stock to tal are b oth com m on and p re fe rred issues, along w ith su b sta n tia l h o l d i n g s of in su ran ce stocks, th e la tte r re p re se n tin g alm ost e n tire ly stocks of affiliated com panies —both fire and casu alty —w hich com pa nies in tu rn m ain tain in v estm en t p o rt folios th a t include large bond holdings. “B etw een 1931 and 1943 cash and U nited States g o v ern m en t bonds of th o se fire in su ran ce com panies in creased from about 12 p er cent to ap p ro x im ately 40 p er cent of to tal as sets, holdings of all o th er classes of bonds being reduced p roportionately. T h ere w as also a sw itch in stock hold ings, additions being m ade in in su ran ce F and m iscellaneous—m ainly in d u strial —com m on stocks th ro u g h reductions in bank, railro ad and u tility issues. “F ig u res on to tal p ro p erty protection ru n n in g into billions are obviously an im p o rtan t m easure of th e economic and social usefulness of fire insurance, b u t th ey are n ot m easure of th e oper atin g conditions of th e business. Total n e t prem ium s earned less losses and all expenses in cu rred rep re se n t the n e t re tu rn from u n d erw ritin g opera tions to w hich in te re st incom e from invested assets should be added to a r riv e a t th e over-all o perating retu rn s. “D uring th e w ar fire losses have risen steadily, as th e y did in th e last w ar and several follow ing years. The h ig h est an n u al loss in h isto ry w as $561,980,751 in 1926. In 1942 loss w as $314,295,000, and in 1943 $373,000,000. F o r th e y ear ending October 31, 1944, th e loss w as $420,360,000, as com pared w ith $361,485,000 for year ended Octo ber 31, 1943, and th e largest loss for a sim ilar period since 1931. “Losses of last y ear had so affected com panies rep o rtin g to th e New York State In su ran ce D epartm ent th a t they Year 1939 1940 1941 1942 1943 resu lts are given before F ederal in come taxes. “In spite of the depression of th e 1930s, and in th e face of continued low er average cost to th e public, th e fire insurance business increased its financial strength. In th e tw elve-year period since 1932, total fire prem ium s show ed fluctuations w ith in a range of $90,000,000, b u t due to th e steady grow th of allied lines, th e re w as al m ost an u nbroken rise in th e to tal of all kinds of prem ium s w hich w ere col lected. T otal n et prem ium s in 1943 am ounted to $1,075,000,000, as com pared w ith $1,144,000,000 for th e p re ceding year, th e high point d uring th is period.” T hree m ajor problem s today chal lenge th e in g en u ity of m anagem ent and th e system s of group cooperation developed in th e in te re st of solvent in surance u n d er state regulation, th e re p o rt concludes. T hey w ere sum m ar ized as follows: (1) A risin g volum e of fire loss du rin g w ar y ears resu ltin g in actual deficits in u n d erw ritin g oper ations by th e average fire insurance com pany. (2) C rim inal indictm ents of Premiums Earned Fire Losses (Per Cent) Expenses (Percent) $415,004,000 418,835,000 434,342,000 463,277,000 497,382,755 41.5 43.4 44.2 42.4 50.1 52.3 52.2 52.0 52.8 51.9 w ere no longer recording a n et u n d e r w ritin g profit on country-w ide opera tions, in w ritin g fire in su ran ce only. The country-w ide experience of these com panies for th e p ast five y ears is show n in th e accom panying table, ratios being com puted on th e basis of net losses and expenses in cu rred to net earned prem ium s. T he u n d erw ritin g Net Underwriting Profit (Per Cent) 6.2 4.4 2.9 4.8 — 2.0 a large section of the business, in sti gated by th e D epartm ent of Justice u n d er th e an ti-tru st acts, although th e Suprem e C ourt has for seventy-five years held th a t fire in surance w as not in te rsta te com m erce and Congress it self has left all regulation to th e states. (3) Increasing p ressu re for low er rates, w ith substan tial decreases already ef- S carborough ¿ C o>MPANY * First N atio n al Bank B uilding, C hicago OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H orace A. Sm ith, Io w a R e p re se n ta tiv e Des M oines, Io w a N o r th w e s te r n B a n k e r J a n u a r y 1945 34 fective in several states. E stim ates w ere cited indicating th a t these reduc tions w ould cut prem ium volum e at least $21,000,000 a year. R eview ing these problem s in the light of th e an ti-tru st case and pending legislation, th e rep o rt concludes th a t “th e su p p lan tin g of tried state reg u la tion by u n tried federal reg u latio n can h ard ly be justified on th e grounds th a t in v estm en t portfolios w ill be m anaged b e tte r or th a t th e b u y er of insurance can be served m ore efficiently.” * Retires d e é x U v e d THAT in the year 1945 w e w ill g iv e our clients the most com plete insurance protection a v a ila b le. THAT w e w ill serve the largest clien tele in the his tory of our organization. H en ry W. Yates, vice presid en t of th e U nited States N ational B ank of Om aha in th e tru s t d ep artm ent, retired th e first of this m onth, u n d er th e re tire m e n t program of th e bank, it w as announced. Mr. Yates, a m em ber of one of the old banking fam ilies of Omaha, upon his re tire m e n t com pletes 44 y ears of b an k ing service in Omaha. He w as for 24 y ears w ith th e old N ebraska N ation al B ank and will have been w ith the U nited States N ational B ank for 20 years. He expects to re ta in his resi dence in Omaha. Record Increase The enorm ous upsurge in personal savings of th e A m erican people du rin g 1944 is sh arp ly reflected in life insur- M ERC HANTS MUTUAL B O N D IN G COM PANY Incorporated 1933 AND THAT w e w ill be rep resen ted by the finest a g e n ts ever to serve the SU R ETY B U IL D IN G Des Moines, Iowa • WESTERN I I I FIRE INSURANCE COMPANY anee figures. A record total of p re m ium s paid in by policyholders d uring 1944, a record increase in assets, and a $42,000,000 rise in insurance protec tion in force are show n in the first of the year-end financial statem en ts to be issued, th a t of N o rth w estern N ational Life Insu ran ce Company. O ther alltim e highs m ay be expected to show up in th e m any o th er life insurance com pany rep o rts to follow, O. J. A r nold, p resident of the M inneapolis con cern, says. N o rth w estern ’s total in surance in force stood at $586,696,979 as of Decern- No Market Losses This is Iowa’s oldest surety company. A progressive company with experi enced, conservative management. W e are proud o f ou r h u n d red and fifty bank a g en ts in Iow a. To be the exclusive representative of this company is an asset to your bank. • DES MOINES 8, IOWA Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 i >- IF — — — — — — Trust Funds Endowment Funds Insurance Funds Pension Funds Cemetery Care Funds Individuals "V — in our 3% F ed er a lly in sured certificates, w h ich h ave safety, liq u id ity and freed o m f r o m m arket losses. G eo rg e E . V ir d e n , S e c re ta ry NINTH & GRAND ». you invest your money from . . . H o m e O ffic e SO U TH ERN H EN RY W. YATES R e t ir e s f ro m v ic e p r e s id e n c y Write to E. H. WARNER S e c r e ta r y an d M a n a g er The Russell County Building & Loan Association RUSSELL, KANSAS OUR 50th YEAR 35 ber 31st, according to its a n n u al rep o rt, com pared w ith $544,320,530 a y ear ago. C o n trib u tin g to th e gain w as a fu rth e r red u ctio n in th e lapse ratio to a new low, reflecting ab ility of th e average policyholder to keep his in su ran ce in force, A rnold pointed out. T otal assets of th e com pany reached $114,220,589, com pared to $103,048,866 as of th e preceding y ear end. Capital, contingency reserv es and su rp lu s stood at $8,730,770, com pared w ith $7,871,331 a y ear ago. R eflecting fu rth e r increases resu ltin g from its various W ar L oan pledges d u r ing th e year, by far th e larg est portion of th e com pany’s new in v estm en ts in 1944 w as in U. S. govern m en t secu ri ties, to tal holdings of w hich increased to $55,520,792 as of D ecem ber 31st, th u s accounting for n early 50 p er cent of th e to tal assets in th e statem en t. T he $55,520i,792 figure does not include an additional $2,600,000 in bond p u r chases subscribed d u rin g th e Sixth W ar L oan D rive and reserv ed for th e com pany for fu tu re delivery, A rnold stated. E xclusive of revivals and increases, sales of o rd in ary life policies by agents rose 12 p er cent in 1944, to talin g $45,953,198, com pared w ith $40,962,352 in 1943, according to th e report. P rem ium incom e in creased from $12,959,231 in 1943 to $14,744,221 in 1944. holders at th e b an k ’s last an n u al m eet ing. D oesn't T ake M uch A few w ords m um bled in church and you’re m arried; a few w ords m um bled in y o u r sleep and y o u ’re divorced. C a r f in a n c in A nalysis If a m an ru n s after money, h e ’s m oney mad. If he keeps it, h e ’s a cap italist. If he spends it, h e’s a playboy. If he doesn’t get it, he lacks am bition. If he gets it w ith o u t w orking, h e’s a parasite. If he gets it after a life of h ard labor, h e’s a fool w ho got n o thing from life. g Will locally purchased automobiles be locally financed when new cars become available? Both you and Allied Mutual are interested in this. get together. Let's Write ALLIED M U T U A L C A SU A LT Y COM PANY Harold S. Evans, President H ub bell Building Des M o ines, Io w a Chase Resources The sta te m e n t of th e Chase N ational B ank for D ecem ber 30, 1944, w as m ade public J a n u a ry 3, 1945. T otal resources of th e b an k w ere $5,160,004,000, a figure h ig h er th a n on any previous re p o rtin g date. T his figure com pares w ith $4,675.384.000 on Septem ber 30, 1944, and $4,679,974,000 on D ecem ber 31, 1943. D eposits, also at a new high figure for an y re p o rtin g date, am ounted to $4,835,219,000, com pared w ith $4,352,960.000 on Septem ber 30, 1944, and $4,375.582.000 on D ecem ber 31, 1943. Cash in th e b a n k ’s v a u lt and on deposit w ith th e F ed eral R eserve B ank and oth er b an k s am ounted to $900,689,000, com pared w ith $848,832,000 and $1,050,012,000 on th e respectiv e dates; in v e st m en ts in U nited States govern m en t se curities, $2,899,834,000, com pared w ith $2,601,379,000 and $2,603,172,000; loans and discounts, $1,041,046,000, com pared w ith $913,837,000 and $791,980,000. On D ecem ber 30, 1944, th e capital of th e b an k at $111,000*,000 and th e s u r plus at $124,000,000, u n changed from S eptem ber 30, 1944, com pare w ith $100,270.000 and $134,730,000 on D ecem ber 31, 1943. The change d u rin g th e y ear reflects th e tra n s fe r of $10,730,000 from su rp lu s to capital, effective J a n u a ry 13, 1944, follow ing approval by th e shareOUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a g o o d R E T R IE V E R * • - . •• • * # » »Whether you are hunting game or sales, you need a good retriever. In hunting game it’s a dog — in direct mail a return envelope. Return Envelopes are being softpedalled today to save paper. But they will be back in force after victory. Tension knows how! 1912 Grand Ave., Phone 4-4126, Des Moines 14, Iowa A New Sickness P olicy W ithout the Restrictions or Reduc tions Common to Most Health Policies! Pays at the Same Rate for Non-confining Sickness As Con fining and also Provides for Partial Disability. WRITE FOR APPLICATION AND LITERATURE MINNESOTA COMMERCIAL MENS ASSOCIATION 2 5 5 0 P illsb u ry Ave. M in n ea p o lis 4 , M inn. N o r th w e s te r n B a n k e r J a n u a r y 19^5 36 T he N ew York T rust Company IO O MADISON AVENUE AND BROADWAY 40th ST. TEN ROCKEFELLER PLAZA CONDENSED STATEMENT OF C O N D IT IO N DECEMBER 31, 1944 ASSETS Cash and Due from Banks........................................................................$ 1 4 3 ,4 2 7 ,2 0 3 . 9 0 United States Government O b lig a tio n s ................................................ 4 3 8 , 6 0 8 , 3 5 5 .0 8 Other Bonds and Securities ................................................................. 20,871,753.89 Loans and Discounts ........................................................................... 196,120,055.71 Real Estate Bonds and M ortgages............................................................ 1, 2 0 6 , 1 0 4 . 4 1 Equities in Real Estate .......................................................................... 7 5 ,6 3 1 . 4 3 Customers’ Liability for A ccep tan ces................................................... 3 2 1 ,2 8 3 . 4 8 Interest Receivable and Other A s s e t s .................................................... 2,086,112.96 $8 0 2 ,7 1 6 , 5 0 0 . 8 6 LIABILITIES C a p i ta l...................................................................... $ 1 5 ,0 0 0 ,0 0 0 . 0 0 S u rp lu s ..................................................................... 3 0 ,0 0 0 , 0 0 0 . 0 0 Undivided P r o f i t s .............................................. s 8 ,2 3 7 , 3 8 1 . 4 0 General R e s e r v e ...................................................................................... Dividend Payable January 2, 1 9 4 5 ........................................................ A ccep tan ces............................................................................................. Reserve for Taxes and Other L iabilities................................................ D e p o s i t s .................................................................................................. $ 5 3 ,2 3 7 ,3 8 1 . 4 0 5,913 3 3 4 . 8 3 52 5 , 0 0 0 . 0 0 3 7 1 ,8 0 8 . 8 6 4 ,4 2 0 , 2 1 7 . 6 9 7 3 8 ,2 4 8 ,7 5 8 . 0 8 $8 0 2 ,7 1 6 , 5 0 0 . 8 6 In previous Statements the balance of the G eneral Reserve account was not shown separately but was applied as a reduction of assets. U nited States Government obligations and other securities carried at $196,742,474.04 in the above statement are pledged to secure United States Government deposits of $ 181,456,667.64 and other public and trust deposits and for other purposes required by law. TRUSTEES MALCOLM P. ALDRICH RALPH S. DAMON HOWARD W. MAXWELL New York Vice-President & General Manager , ______ American Airlines, Inc. GRAHAM H. ANTHONY Pres., Colt’s Patent Fire Arms Mfg. Co. FRANCIS B. DAVIS, JR. Chairman of the Board R ^ a S Y u c k S k ^ B o S a tin e United States Rubber Company New York HARRY T PFTFRS \7 U , New \ ork SETON PORTER President, Nattona l iJisttllers SAMUEL H. FISHER Litchfield, Cotin. JOHN E. BIERWIRTH Prestclent 1 elv ALFRED A. COOK Cook, Lehman, Greenman, Goldmark & Loeb rr tt t r ' rn-TT t?i, WILLIAM r. CUILER Vice-President American Brake Shoe Company Products Corporation WILLIAM HALE^ HARKNESS or ROBERT C. REAM President, American Re-Insurance Company HORACE HAVEMEYER, JR. Executive Vice-President The National Sugar Refining Company b. MORRIS SAYRE Exec.Vice-Pres.,CornProductsRefiningCo. BREWSTER JENNINGS President, Socony-Vacuum Oil Co., Inc. VANDERBILT WEBB New York Member of the Federal Deposit Insurance Corporation N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 1945 OUR 50th YEAR 37 How Bank Credit Group Plan W orks By Evan Randolph President The Philadelphia National Bank 1. A ll applications fo r loans com e through originating hanks. sm all business concerns d u rin g recon version period. 2. In d iv id u a l borrow er does not m a ke ap plication to B a n k C redit G roup. 4. C redit C o m m ittee accepts risk fo r the G roup o n ly on u n a n im o u s vote o f its m em bers. 3. P urpose o f C redit G roup is to finance T IS a w ell know n fact th a t a convert w ho originally opposed th e B ank C redit G roup plan, is m ore th o r oughly im bued w ith th e th e o ry w hich he has adopted th a n th e m en w ho have orig in ated th e philosophy or have been th e apostles of its teaching. W hen I first h eard of th e B ank Credit Group plan as expounded by its orig in ato rs in th e A m erican B ankers Asso ciation I w as opposed to it on the grounds, first, th a t it w as u n n ecessary and, secondly, th a t it w as like a ru b b er ball th a t m ig h t bounce back and h it one w h en not expected. W hen I w as approached by th e offi cers of th e P h ilad elp h ia C learing H ouse A ssociation as to w h e th e r I w ould act as ch airm an in th e form a tion of a B ank C redit G roup for P h ila delphia, I asked th a t I m ig h t be given tim e before an sw erin g so th a t I m ight stu d y m ore th o ro u g h ly th e situation. R eceiving an affirm ative rep ly to th is req u e st I w e n t to N ew Y ork and saw a n u m b er of m y friends, w ho gave m e considerable d ata in ty p e w ritte n or m im eographed form , and a fte r stu d y ing th e m a tte r carefully I cam e to th e conclusion th a t I w as w illing to a t tem p t th e form atio n of a B ank Credit Group in P hiladelphia, b ut th at I w as been arriv ed at by tak in g th e re sources of each financial in stitu tio n as of Ju n e 30, 1944, after deducting a sum w hich is equivalent to th e re ciprocal balances a b an k m ight have had on Ju n e 30th, and th e n in addi tion deducting the W ar Loan balance carried by th e in stitu tio n as of Ju n e 30th. The totals th u s arriv ed a t for th e P hiladelphia Group am ount to $2,238,692,000. E ach b a n k ’s percentage of p articipation is th e n w orked out pro rata, th e largest percentage being 28.36 p er cent and th e sm allest .52 per cent. I go in g to m ake it clear to every possible p articipant th at the Group w ould n ever have a ch an ce to handle w h at m ight be term ed “the ordinary bank loan ” but w ould on ly be asked to consider loans in w hich there w as a real prob ab ility of som e m ore or less ultim ate loss. The first step in form ing th e P h ila delphia G roup w as to ask te n of th e larg est b an k s and tr u s t com panies in P hilad elp h ia w h e th e r th e y w ould be in te re ste d in jo in in g a $10,000,000 group, an d all te n b an k s agreed to join. A n in v itatio n w as th e n extended to all of th e b an k s and tr u s t com panies hav in g th e ir princip al offices in P h ila delphia, and a t th e p re se n t tim e tw en ty b an k s and tr u s t com panies in OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EVAN RA ND O LPH “ . . . a c o n v e r t w h o o r ig i n a ll y o p p o s e d ” th e city have signified th e ir w illing ness to join such a group. You m ay w onder how P hiladelphia chose th e figure of $10,000,000, and I can an sw er you b est by saying th a t P hiladelphia ban k in g resources are approxim ately one-tenth of those of N ew York, and w ith New Y ork form ing a $100,000,000 group, $10,000,000 seem ed to be th e rig h t figure for P h ila delphia. If by any chance m ore m oney is needed in P hiladelphia, th e first $10,000,000 having been used in m aking loans by th e Group, I have no doubt th a t an additional pool can easily be form ed. I p resum e th a t n early all of you are fam iliar w ith w h at th e P hiladelphia and th e New Y ork Group plan agree m en ts are, b u t I should like to point out certain highlights. E ach m em ber of th e group agrees to tak e a certain p ercentage of an y and all loans w hich are approved by th e Group as a whole. In P hiladelphia th e percentage has The purpose of the group is to im plem ent, au gm ent and undertake the financing (through loans or other credit accom m odations) of sm all and m edium -sized b u sin ess concerns in the U nited States during the p resen t re conversion period, w hich is expected to con tinu e after the cessation of the p resen t h o stilities, by participating w ith originatin g banks in financing risk s so undertaken w hich m ay be in am ounts, for periods or upon term s or under con d itions w hich m ay m ake u su al b ank ing accom m odations un available. L et m e point out th a t th e individual borrow er does not m ake an application to th e B ank C redit Group, all applications for loans m u st come th ro u g h an originating bank. The origi n atin g b ank m ay be a m em ber of th e B ank C redit Group of P hiladelphia b u t can be any b ank w ith in or w ith o u t th e T h ird F ederal R eserve D istrict. May I am plify th a t last statem ent? A bor row er m ust go first to h is ow n bank regarding any proposed borrow ing. T hen if it is a loan too large for that bank it w ould take the loan probably to its city correspondent, and if the loan Avas attractive and good the m atter m ight p ossib ly end there. If the city correspondent did n ot care for the loan, the local bank, called in the agreem ent the “originatin g bank,” w ould eith er directly apply to the Group or do so through its corresN o r th w e s te r n B a n k e r J a n u a r y 19^5 38 The o riginating bank m ust, how ever, be w illing to take for its ow n account, if it is not a m em ber of th e B ank Group, a reasonable sh are in th e loan w hich it poiulent city bank. b rings to th e B ank Group on the sam e term s as th e m em bers of th e Group. T he actual servicing of th e loan m ay be by th e original bank or such m em b er b ank of the Group as m ay be Thomson &McKinnon BROKERS M EM BERS NEW Y O RK STO CK EXCHANGE A ND ALL P R IN C IP A L E X C H A N G E S TAKE PLEASURE IN A N N O U N C I N G OF TH EIR NEW THE OPENING OFFICE D E C E M B E R 2 1 , 1944 216-218 EM PIRE BU ILDING DES TELEPHONE MOINES, IOWA 4-2127 UNDER THE MANAGEMENT OF LAV E R N E M. BAR LO W W e ow n a n d o ffe r * 6 8 , 0 0 0 City of Dubuque (Iowa) Bridge Commission 2 (4 % First Mortgage Bridge Revenue Refunding Bond $20,000 20.000 8,000 10.000 10.000 due du e due du e due J a n u a ry J a n u a ry J a n u a ry Ja n u a ry Ja n u a ry 1, 1, 1, 1, 1, 1950, 1951, 1952, 1953, 1954, to to to to to y ield y ield y ield y ie ld y ield 2.00% 2.10% 2.15% 2.20% 2.25% Payable from revenues of the new Dubuque-East Dubuque Bridge. Net revenues for first full year operation to August 3 1 , 1 9 4 4 , were 2.61 times maximum interest charge. The income from these bonds is subject to Federal Income Tax. D e ta ile d circu la r on re q u est. W HEELOCK & CUM M INS Incorporated 200 Equitable Building Phone 4-7159 DES MOINES, IOWA designated by the C redit Com m ittee. Now w hat, you w ill ask, is th e Credit Committee? The G roup A gree m ent states th a t the C redit Com m ittee shall consist of one m em ber or his a ltern ate for each M em ber Bank, w ho shall be officers of such bank, and upon w hom shall be conferred by ap p ropriate action the necessary pow er and a u th o rity to com m it th e b an k to accept p articipations up to th e ag gre gate am ount of th a t b a n k ’s com m it m ent in the credit group. The Credit Com m ittee shall accept risk s for th e account of th e Group only by th e unanim ous vote of its m em bers or th e ir respective altern ates. If any m em ber of the C redit Com m ittee says th a t his bank does not care to share in th e loan being considered by the Credit Com m ittee, the loan in question is th en autom atically tu rn e d dow n as far as th e B ank C redit Group is con cerned, although th ere is no reason w hy the rem aining banks considering the loan should n ot advance the m oney requested to the borrow er. B ut as I have ju st said, in th is case it is not a group credit. To repeat, A r ticle 4.5 of th e A greem ent says, “The Credit Com m ittee shall accept risk s for th e account of th e Group only by the unanim ous vote of its m em bers or th e ir respective a ltern ates.” As you w ill see, no bank w hich is a m em ber of th e Group has to tak e a p articipation in a loan w hich it does not w ish to sh are in. A nother ques tion you w ill w an t an answ er to is, How w ill th e C redit Com m ittee ap proach th e question of a loan? L et me quote again from the A greem ent itself. A rticles 5.2 and 5.3 say: “Be fore acting upon any req u est for p a r ticipation by th e Group in a financial risk th e Credit Com m ittee shall re quire ap p ro p riate historical, financial and o ther relev an t data w ith resp ect to the prospective borrow er or credit tak er, the term s proposed by th e Or iginating Bank, including th e ra te of in terest upon th e loan, resu ltin g from its own negotiations w ith its custom er, and advice as to th e extent to w hich th e O riginating B ank is prep ared to p articipate in such financial risk .” (5.3) “The C redit Com m ittee shall not e n te rta in a financial risk in w hich the S carborough ^ C ompany là e é v iò ( i c rß m First N a tio n a l B ank B uilding, C h icag o N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 19^5 t k yi. H orace A. Sm ith, Io w a R e p re s e n ta tiv e Des M oines, Io w a OUR 50th YEAR 39 O riginating B ank shall not have or reta in a reasonable sh are of such risk on th e sam e term s as th e M em bers of the G roup.” One m ore quo tatio n from th e A gree m ent: “I t is provided th a t any M em ber of th e G roup m ay w ith d raw from and cease to be a p a rty of th e G roup upon ten d ay s’ w ritte n notice to th e Credit Com m ittee, and a fte r th e expiration of said te n d ay s’ notice period no fu rth e r com m itm ent should be m ade by th e C redit C om m ittee for th e account of such b an k and th e m em ber and th e alte rn a te of such w ith d raw in g b ank shall cease to be a m em ber or a lte r nate of th e C redit C om m ittee.” T hat, in brief, is a su m m ary of th e P hiladeh phia B ank Credit G roup plan. Royal Bank Appointment A p pointm ent of M. M. W alter as a s sista n t general m an ag er of The Royal B ank of Canada, has been announced. Mr. W alter has been m anager of th e b an k ’s m ain M ontreal b ran ch since 1938 and is well know n in business and financial circles th ro u g h o u t eastern Canada. H e w as b o rn in O ntario and began his b an k in g career w ith The Christmas Gifts Bankers Trust Promotions Crosby Kem per, presid en t of th e City N ational B ank and T ru st Com pany of K ansas City, M issouri, sent each of the 43 form er em ployes of th e bank now in th e arm ed forces a C hristm as box and a check for $25. At a m eeting last m onth of the board of directors of B ankers T ru st Com pany, New York, L. G. Payson and P. M. T uttle, form erly assistan t vice p res idents, w ere elected vice p residents and W. J. Snow, Jr., w ho is now director of PR O V I DI NG I NVESTMENT CAPI TAL T°The^MiddleAtlanticStates M OST populous and most highly industrialized, the Middle At lantic States naturally rank high in capital requirements, in production of goods, and in wealth. Center o f shipping from the days o f "Fulton’s Folly” ; o f security trad ing since the days o f the Buttonwood Tree; starting point o f western migrations down the Ohio River and through the Erie Canal—these states have lo n g been the spearhead o f American progress. In their internal development and in making their resources available to other sections, The Middle At lantic States have had frequent occa sion to utilize the facilities o f in vestment organizations such as our own thus providing both capital for growth and opportunity for prudent investors. Indicative o f its contribution to the progress of this area, Halsey, Stuart <&Co. Inc. has participated as an original underwriter in almost 600 bond issues, totaling over $2Si billions, of representative corporations and municipalities of the M iddle Atlantic States. H A L S E Y , S T U A R T &. C O . In c . CHI CAGO 90, 123 S. LA SALLE STREET • NEW YORK 5, 35 WALL STREET AN D OT HE R P R I N C I P A L C I T I E S BONDS Public Utility Industrial R a ilro a d M. M. W A LLER A s s i s t a n t G e n e ra l M a n a g e r M unicipal R oyal B ank of Canada in O shawa in 1912. A fter gaining b an k in g experi ence a t a n u m b er of bran ch es in his n ativ e province, he w as tra n sfe rre d to th e su p e rv iso r’s d ep artm en t, Toronto, in 1924. F o u r y ears la te r he w as tra n s ferred to head offices and subseq u en tly w as appointed assista n t m an ag er of M ontreal branch. In 1938 he w as p ro m oted to th e m anagership. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A.C.ALLYNandCOMPANY Incorporated 1 0 0 W e s t M on roe S tr e e t, C h ic a g o N ew Y o rk R e p r e s e n ta tiv e s : W a te r lo o M ilw a u k e e ’ B osto n M in n e a p o lis N o r th w e s te r n B a n k e r M olin e J a n u a r y 19^5 40 finance of th e F a rm C redit A d m in istra p resident, and J. H. M orris w as m ade tion at K ansas City, w as elected an as a ssistan t m anager of the b a n k ’s Lon sista n t vice p resident. T he follow ing don office. prom otions w ere also approved by th e board: Lobby Display E. M. A ndel and F. W. B ristow , as In connection w ith its recen t W ar sista n t tre a su re rs, w ere elected a ssist Loan D rive activities, th e M ercantilea n t vice p residents; P. J. Dugan, bu ild Com m erce B ank and T ru st Company, ing su p erin ten d en t, becom es chief en St. Louis, show ed an in terestin g dis gineer; R. W. P arsons, of th e bond de play of old m echanical banks in its p artm e n t, becom es an a ssista n t vice lobby, the banks being p a rt of th e col lection of I. A. Long, vice president. Some 45 banks w ere on display, b rin g ing back m em ories of childhood saving days to m any a depositor, w hen a t th e touch of a lever, figures moved, action took place w ith a m ysterious w h irrin g sound and th e ir p enny or o th er coin w as sw iftly deposited in th e iron re cesses of th e b ank—safe from te m p ta tion—and saved. Heads Des Moines Branch T hom son & M cKinnon, national b ro k erage firm, last m onth opened a b ran ch office in Des Moines at 216-218 E m pire Building. The Des Moines office brin g s to a total of thirty-tw o such b ranches in the U nited States and Canada. Al fred W. Mansfield, Sr., a senior p a rtn e r in th e firm, as w ell as o th er m em bers of the Chicago office, w ere in Des Moines for th e opening. This office is th e first to be opened by any New Y ork stock exchange firm anyw here since th e w ar started. La V erne M. Barlow, w ell know n to Iow a and m iddle w estern b an k ers and financiers, is m anager of th e Des Moines branch. F o r th e p ast tw o y ears Mr. B arlow has been area re n t director for th e OPA, and m ore recently d istrict loan agent for th e Sm aller W ar P lan ts Corporation. P rio r to th a t he has been C ity N ational Bank and Frust C om pany of C hicago C o n d e n s e d S ta te m e n t o f C o n d itio n , D e c e m b e r 3 1 , 1 9 4 4 LIABILITIES R ESOURCES C a sh a n d Due from B a n k s ................................ $ 78,783,867.46 C a p i t a l ................................................ U. S. G o v ern m en t S e c u r i t i e s ................................ S u rplus S tate, M u nicipal, a n d O ther S ecurities L oans and . 6,062,646.17 D i s c o u n t s ........................................ 82,361,993.80 F e d e ra l R eserv e Bank Stock A ccru ed . . . 160,617,727.67 . . I n t e r e s t ................................................ ................................................ U n divided Profits . . . . R e serv es for Interest. T axes, an d C o n tin g en cies . . . . S 4,000.000.00 4,000.000.00 1,313,474.35 1,863.031.59 240,000.00 R e serv ed for D ividends D eclared 160.000.00 556,408,42 L etters of C redit a n d A cce p ta n ces O u t s t a n d i n g ................................ 1,220.626.12 O ther L ia b il i t i e s ................................ 57,458.20 C u sto m ers' L iability on L etters of C redit a n d A c c e p t a n c e s ................................................ 1,220.309.30 O th er R e s o u r c e s ................................................ 43,150.67 D eposits ........................................ $329.886.103.49 317.271.513.23 $329,886.103.49 Member Federal Deposit Insurance Corporation N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 19't5 OUR 50th YEAR 41 associateci w ith b an k in g and brokerage activ ities in Iow a for 33 years. W ith its m ain office in New York, o th e r u n its of Thom son & M cK innon are located in Chicago, Indianapolis and T oronto, O ntario. The firm is a m em ber of th e New York Stock E x ch an g e and o th er prin cip al exchanges THE P H IL A D E L P H IA N A T I O N A L 3 fä e w i r / B A N K Y/ l s r / */ J 'S Y '.S Statement of Condition, December 30, 1944 R E S O U R C E S Cash and due from B a n k s ................. $179,670,195.27 U. S. Government S e c u r i t i e s ........ L. M. B A R L O W D e s M o in e s M a n a g e r in th e country, w ith an o rganization of m ore th a n 500 m en and w om en. The Septem ber 30, 1944, financial sta te m e n t of T hom son & M cK innon lists total as sets a t $25,942,997.97. 471,028,479-15 State, County and Municipal Securities . . 10,547,043.46 Other S e c u r itie s .................................. 29,499,884.04 Loans and D i s c o u n t s ..................... 78,800,074.86 Accrued Interest R e c e i v a b l e ........ 2,176,993-07 Customers’ Liability Account of Acceptances . 2,403,399-12 Bank B u i l d i n g s .................................. 1.00 Heads Committee M em bers of th e $10,000,000 B ank C redit G roup of P hiladelphia, w hich has been form ed for th e purpose of fi nancing sm all and m edium sized busi ness concerns, at a recen t m eeting elected J. W illiam H ardt, vice p resid en t of T he P hiladelphia N ational B ank, as ch airm an of the cred it com m ittee. A n th o n y G. Felix, vice p re sid e n t of th e P en n sy lv an ia C om pany for In su ran ces on L ives and G ran tin g A nnuities, is vice ch airm an, and O. H ow ard W olfe, w ho for th e p ast th re e y ears h as been in th e service of th e U nited States gov ern m e n t on leave of absence from his duties as a vice p resid en t of The P h ila delphia N ational B ank, is secretary. Surplus Increased T he su rp lu s fund of The N o rth ern T ru st Com pany, Chicago, has been in creased from $6,000',000 to $12,000,000 by th e board of directors. T hree m il lion dollars w as tra n sfe rre d from u n d i vided profits and $3,000,000 from re serves. The 188th q u a rte rly dividend w as also declared, am o u n tin g to $4.50. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $774,126,069.97 LIABILITIES Capital Stock (Par Value $20.00) . . . . $ 14,000,000.00 S u r p l u s ............................... 28,000,000.00 Undivided P r o f i t s ............ 9,958,268.70 Reserve for T a x e s ............ 2,531,815.94 Dividend (Payable January 2, 1945) . Unearned Discount and Accrued Interest A c c e p ta n c e s ......................... Deposits United States Treasury All Other Deposits . . . 875,000.00 . . 145,851.18 3,248,617.88 .$101,518,722.75 . 613,847,793-52 715,366,516.27 $774,126,069.97 Philadelphia, Pa. Member o f the Federal Deposit Insurance Corporation N o r th w e s te r n B a n k e r .tannary 1945 42 STATEMENT OF CONDITION First N ational Bank o f M inneapolis as at December 30, 1944 DIRECTORS RES OURCES Henry E. Atwood, Vice President, Cash on H and and Due from Banks . $ 83,593,293.88 U nited States G overnm ent Bonds 222,067,649.25 (Direct and Fully Guaranteed) G uaranty F u n d ........................................... 600,000.00 (United States Government Bonds with State Treasurer to guarantee performance of Fiduciary Duties) Loans and Discounts . . . . . 52,460,413.27 O ther Bonds and Securities . . . . 9,759,054.51 O v e r d r a f t s ................................................... 15,552.37 Bank B u i l d i n g s ........................................... 401,811.92 Custom ers’ Acceptance Liability 37,690.00 interest Earned but not Collected 833,408.56 O ther Assets . . . . . . . 20,944.46 Total Resources . . . . $369,789,818.22 The B. F. Nelson Mfg. Co. Russell H. Bennett, Mining Engineer Daniel F. Bull, President, The Cream of Wheat Corp. J . G. Byam, Vice President E. L. Carpenter, Retired John Cowles, President, Minneapolis Star Journal and Tribune Co. Franklin M. Crosby, Vice President, General Mills, Inc. Paul V. Eames, President, Shevlin, Carpenter & Clarke Co. John H. Hauschild, President, Chas. W. Sexton Co. Horace M. Hill, President, Janney, Semple, Hill & Co. W. L. Huff, Vice President and Treasurer, Minneapolis-Honeywell Regulator Co. C. T. Jaffray, Chairman of the Board, First Bank Stock Corporation John H. MacM illan, Jr., President, Cargill, Inc. LIABILITIES Sumner T. McKnight, C apital Stock . . . . . . . 6,000,000.00 S u r p l u s ............................................................ 9,000,000.00 U ndivided P r o f i t s ........................................... 3,025,677.51 Reserve for Interest, Expenses, Taxes, etc. 2,341,908.14 Interest Collected but not Earned 60,959.06 Letters of Credit and Acceptances 37,690.00 O ther Liabilities . . . . . . 29,589.59 D e p o s its ........................................................... 349,293,993.92 (* United States Government IFar Loan Deposits included) Total Liabilities . . . . $369,789,818.22 *United States Government War Loan D eposits ........................... . . . $90,877,835.10 President, S. T. McKnight Co. W. G. Northup, President, North Star Woolen Mills Co. S. G. Palmer, President, S. G. Palmer Co. A. F. Pillsbury, Director, Pillsbury Flour Mills Co. Lyman E. Wakefield, President Robert W. Webb, Vice President H. R. Weesner, Chairman Board, Wabash Screen Door Co. F. B. Wells, Vice President, F. H. Peavey & Co. C. J. Winton, Jr., President, Winton Lumber Co. Sheldon V. Wood, President and General Manager, Minneapolis Electric Steel Castings Co. Edgar F. Zelle, President, Jefferson Transportation Co. United States Government obligations and other securities carried at $134,892,179.67 in the foregoing statement are deposited to secure public funds and for other purposes required by law. Memhsr Federal Deposit Insurance Corporation A ffi lia te d w ith N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 19715 first ba nk stock corporation OUR 50th YEAR 43 ployed in th e bank, becam e a director an d a ssistan t cashier and also assum ed th e m anagem ent of his fa th e r’s busi ness. M IN N E S O T A Stanley S. Gillam, th e o th er son and b rother, and one of th e substan tial stockholders of th e bank, has also dis posed of his in terests, and at th e p res en t tim e is practicing law in M inne apolis. NEW S W IL B U R F . M c L E A N P r e s id e n t D u lu th Sells Bank Interest T he in te re st of 0. A. Schultz in th e F irs t N ational Bank, Moose Lake, M in nesota, w as acquired recen tly by N. A. B auer, form erly a ssista n t cashier of th e F irs t N ational B ank of G rand R ap ids, and J. V. Q uinlan of H ibbing and Reed H auslaib of Coleraine. Mr. B auer at a m eeting last m onth w as elected p re sid e n t and cashier and Mr. H auslaib and Mr. Quinlan, d irec tors who, w ith L. H. Blacklock and F. A. Schw eiger w ill co n stitu te th e new officers and directors of th e bank. T he re tirin g officers and d irectors are O. A. Schultz, A. J. W ente and F. B ergquist. Heads Shelly Bank George J. Johnson, senior vice p resi dent, A m erican N ational B ank, St. Paul, w ill be th e new p resid en t of the S tate B ank of Shelly, M innesota, to succeed E. C. H opkins, w hose d eath occurred recently. E d E ngelstad, now cashier, w ill be advanced to vice p re si d en t and w ill be o p eratin g officer of th e bank. A lvin M. A anenson w ill be cashier, succeeding Mr. E ngelstad. 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 on p resen tatio n of th e ir tru s t certifi cates, a 40 p er cent dividend or 20 per cent of th e total deposit in th e b ank at th e tim e of reorganization in 1933. Ex Banker and W ife Killed B ert Disney, 72, a re tire d Zum bro Falls, M innesota, banker, and his wife w ere fatally in ju red last m onth w hen th e ir autom obile and a m ilk tru c k col lided on th e slippery highw ay near L ake City. Mr. D isney w as an ap p raiser for the F ed eral L and B ank and had conducted an in su ran ce business since his re tire m ent from banking. Leaves Windom Bank Paul J. Gillam has resigned his posi tion as director and a ssistan t cashier of th e W indom N ational Bank, W in dom, M innesota, and also disposed of his in terests in th e bank. A fter his fa th e r’s death on May 13, 1933, Mr. Gillam, w ho since 1925 had been em Board Elects New Officers At a m eeting of th e board of direc tors of th e Citizens N ational Bank, Madelia, M innesota, held recently, A r th u r Jacobson w as elected a director to fill the vacancy caused by th e death of Dr. W. J. M cCarthy. At th e sam e m eeting G. V. C hristian sen w as elected presid en t of th e bank, to succeed th e late Dr. M cCarthy, and E. F. M cCarthy w as elected vice presi dent. Joins Backus Bank Jack B. Seibert, form erly located at L ittle Rock, A rkansas, last m onth joined th e B ackus State Bank, Backus, M innesota, as cashier of th a t in stitu tion. He w as to assum e his new duties at once. Mr. Seibert has been associated w ith banks in M aquoketa, Jackson count}, Iowa, and at Quincy, Illinois. P rio r to his com ing to Backus, he w as N ational B ank exam iner for th e U. S. T reasury, w ith h ead q u arters at L ittle Rock, A rkansas. Discuss Postwar Taxes Modernizing T he force a t th e S h erb u rn N ational Bank, S herb u rn , M innesota, cam e out from beh in d th e b ars last m o n th w hen th e fixtures th a t have graced th e bank since 1918 w ere rem oved. T he b ars th a t adorned th e b an k fixtures w ere ta k e n out and th e doors and fixtures cut dow n to tw o-thirds of th e original height, and th e in te rio r has been com pletely stream lined. In addition to th e w o rk on th e fix tures, a new asp h alt tile floor covering has been placed in th e em ployes’ p o r tio n of th e bank. F u rth e r im prove m ents are being considered, including a soundproofing arran g em en t. Bank Pays Dividend H olders of p articip atin g tr u s t certifi cates of th e F a rm e rs S tate B ank of W aubun, M innesota, are receiving, u p OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W hether reduction in in d iv id u al or corporation tax es w ill be the more im p o rta n t to postw ar business was discussed last m onth a t a m eeting of M inne apolis C hapter, A. I. B. P ic tu re d above a t th e speakers tab le are G. Sidney Houston, m anager inv estm en t research d epartm ent, F irst Service Corporation, St. P a u l; Oscar F. Litterer, sta tistic ia n F ed eral Reserve B ank, M inneapolis; John F. Fennelly, p a rtn e r, Glore, Forgan & Company, Chicago; and J. Cameron Thomson, p resid en t N orthw est B ancorporation and vice chairm an Committee fo r Economic D evelopm ent. Mr. Thomson is also chairm an of the Committee on Economic P olicy of th e U. S. Cham ber of Commerce, and chairm an of the N orthw est R esearch Comm ittee. N o r th w e s te r n B a n k e r J a n u a r y 1945 44 • MINNESOTA NE WS Christmas Carols Federal Reserve Member D uring th e holiday season th e Tw in City F ed eral Savings and Loan Asso ciation of M inneapolis co n trib u ted m a terially to th e holiday aspect of th a t city by playing from its co rn er location C hristm as carols on th e association’s H am m ond electric organ. The associa tion happ en ed to p u rch ase th e organ a few y ears ago and P re sid e n t Roy W. L arsen says th a t th is m usical featu re has m ade th em m any friends. D uring the y e a r th e y loan th e electric organ to various M inneapolis churches w hich cannot afford to p u rch ase an organ. A dm itted to m em bership in the F ed eral R eserve System last m onth w as th e F irs t State B ank of M eriden, M eri den, M innesota. D irectors of the bank are: E d J. Buscho, W. P. Jones, H. J. K arsten, F re d M undt, J. H. C. Schuldt and H. H. W icklow. Officers are: Mr. Schuldt, president; Mr. W icklow, vice president; Mr. Jones, cashier, and Al fred Schuldt, a ssistan t cashier. Amend Article Section five of th e certificate of in corporation of th e State B ank of H inck * ley, M innesota, has been am ended to read: “The am ount of th e capital stock shall be $25,000, fully paid in, in cash, w hich shall be divided into 250 sh ares of 100 dollars each.” Represents Association Stanford R onning, cashier of th e U n ion State Bank, B row ns Valley, M inne sota, attended the state m eeting of th e Clearing H ouse Groups of th e M inne sota B ankers A ssociation at a m eeting held at th e Nicollet H otel in M inne apolis recently. Mr. R onning re p re sented th e W est C entral C learing H ouse A ssociation of w hich he holds th e position of president. Tw entyth ree associations th ro u g h o u t M inne sota are m em bers of the C learing H ouse G roups of th e M innesota B ank ers Association. Windom Cashier Dies Statem ent of Condition D ecem ber 30, 1944 RESOURCES Loans and Discounts.............................. Vault and Fixtures.................................. Interest Earned not Collected................ U. S. Gov't. Obligations..................$9,193,843.43 Other Bonds and Securities............ 620,099.51 Cash and Due from Banks............... 3,034,396.14 $ 1,982,281.80 1.00 Jo h n J. Rupp, well-known W indom , M innesota, banker, died at his hom e th ere recently. The W indom N ational Bank, of w hich he w as cashier, u n d e r w en t a change in ow nership th e first of Septem ber w hen Mr. Rupp sold out his interest. Mr. R u p p ’s en tire life w as tied up w ith th e b anking business. He w as em ployed in the Cottonwood C ounty B ank of W indom from 1891 to 1902, all b u t his first tw o y ears as a ssistan t cash ier. He th e n becam e cashier of th e W indom N ational Bank, w hich position he held u n til the tim e of th e tra n sfe r last fall. 43,425.07 12,848,339.08 Ja m ieso n TOTAL RESOURCES ......................................... $14,874,046.95 LIABILITIES Capital...........................................................................$ 250,000.00 Surplus ......................................................................... 250,000.00 Undivided Profits andReserves................................. 293,467.70 Other Liabilities ........................................................... 64,132.67 Deposits ......................................................................... 14,016,446.58 TOTAL LIABILITIES ...........................................$14,874,046.95 ★ ★ South Saint Paul, Minn. FED ERA L D E P O S IT IN S U R A N C E C ompany M em bers New York Stock Exchange and O th er P rin c ip a l E x ch an g es ★ STOCKS BONDS ★ The Stock Yards National Bank M EM BER & C O R P O R A T IO N COMMODITIES MINNEAPOLIS ST. PAUL DULUTH FA RG O GRAND FORKS SIOUX FALLS PRIVATE WIRES Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19J5 OUR 50th YEAR 45 M I D L A N D NATIONAL BANK AND TRUST COMPANY OF M IN N EA P O LIS Condensed Statement of Condition December 30, 1944 D IR EC TO R S R ESO U R C ES Cash an d D u e fr o m B a n k s ---------U. S. G overn m en t S e c u r itie s------O ther B on d s and S e c u r itie s--------- $ 1 1 ,3 5 2 ,2 3 7 .2 9 $ 3 4 ,5 1 2 ,6 1 8 .9 7 2 ,9 4 2 ,2 8 3 .5 7 W. A urand V ic e P r e s id e n t 3 7 ,4 5 4 ,9 0 2 .5 4 1 0 ,4 8 5 ,2 3 7 .1 7 1 3 4 ,4 9 9 .6 9 2 ,5 4 5 .4 1 Loans and D isc o u n ts--------------------In com e E arn ed bu t not C ollected O ther R esou rces __________________ C a lv in $ 5 9 ,4 2 9 ,4 2 2 .1 0 N. C. B e im C h a irm a n o f th e B o a rd , W . H . B arber C om pany F rederic B. C arr P r e s id e n t and T r e a s u r e r , H a lle t & C a re y C o m p a n y G. L. H eegaard P r e s id e n t, M a n d a n M e r c a n tile C o m p a n y L IA B IL IT IE S D em an d and T im e D e p o s its ____________ U. S. W ar L oan D ep o sit A c c o u n t_______ R eserves fo r In terest, E x p e n se s and T a x es In co m e C ollected but n o t E a r n e d ----------C ap ital S t o c k ____________________________ S u rp lu s __________________________________ U n d ivid ed P r o f i t s ________________________ R eserve fo r C o n tin g e n c ie s_______________ $ 4 1 ,5 3 5 ,3 1 3 .1 1 1 5 ,2 0 0 ,4 3 7 .5 2 W. C. H elm 1 4 2 ,7 4 2 .7 1 4 9 ,3 9 3 .7 6 $ 1 ,0 0 0 .0 0 0 .0 0 1 ,0 0 0 ,0 0 0 .0 0 1 7 8 ,7 1 5 .9 5 3 2 2 ,8 1 9 .0 5 V ic e P r e s id e n tj R u s s e ll- M ille r M illin g C o m p a n y $ 5 6 ,7 3 5 ,7 5 0 .6 3 D r . O. B. J esn ess C h ie f, D iv is io n o f A g r ic u ltu r a l E c o n o m ic s, U n iv e r s ity o f M in n e s o ta C harles B. J ordan P r e s id e n t a n d M a n a g e r, J o rd a n S te v e n s C o m p a n y 2 ,5 0 1 ,5 3 5 .0 0 $ 5 9 ,4 2 9 ,4 2 2 .1 0 U . S. G o v e rn m e n t a n d O th e r S e c u ritie s c a r r i e d a t $ 2 2 ,8 7 3 ,1 6 9 .7 7 a r e p le d g e d to s e c u re p u b lic d e p o s its a n d t r u s t f u n d s a n d f o r o th e r p u rp o s e s , a s r e q u i r e d b y la w . B en C. M cC abe P r e s id e n t, M c C a b e B r o th e r s C o m p a n y P r e s id e n t, In te r n a tio n a l E le v a to r C o m p a n y M. C lay M cC artney P r e s id e n t, T o r o M a n u fa c tu r in g C o m p a n y H en ry J. N eils O FFIC ER S S e c .- T r e a s ., F lo u r C ity O r n a m e n ta l I r o n Co. A r n u l f U eland ............................................................... P r e s id e n t C alvin W . A u r a n d ...................................................................................................... V ic e P re sid e n t W . E . B r o c k m a n ............................................................................................................. V ic e P r e s id e n t W il l ia m R. C h a p m a n ................................................................................................ V ic e P r e s id e n t L a w rence O. O l s o n .................................................................................................... V ic e P r e s id e n t R obert S. S t e b b in s .........................................................V ic e P r e s id e n t a n d C a sh ie r M elvin D. B u r t ....................................................................................................A s s is ta n t C a sh ie r E. W alter E n gstro m ......................................................................................... A s s is ta n t C a sh ie r J am es A . G a l b r a it h ........................................................................................... A s s is ta n t C a sh ie r V ictor W . M a s e r .................................................................................................. A s s is ta n t C a sh ie r K e n n e t h D. M o r la n ......................................................................................... A s s is ta n t C a sh ie r *C lifford C. S o m m e r ......................................................................................... A s s is ta n t C a sh ie r E verett L. T h o m p s o n ......................................................................................... A s s is ta n t C a sh ier H arry M. W il l m e r t ........................................................................................... A s s is ta n t C a sh ie r F r a n k W . P et er so n .................................................. C o m p tro lle r * 0 n le a v e o f a b s e n c e w i t h M E M B E R OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis U n i te d S t a t e s A r m e d F o r c e s . F E D E R A L D E P O S I T J. R. R andall P r e s id e n t, R e s e r v e S u p p ly C o m p a n y E dw . A . S c h la m pp P r e s id e n t a n d T r e a s ., P . S c h la m p p & S o n , In c . M a urice S c h u m a c h e r B u ild in g C o n tra c to r S a m u el S ew all T r ea s ier er, M in n e a p o lis I r o n S to r e A r n u l f U eland P r e s id e n t P a ul E . von K üster P r e s id e n t, D a v id C. B e ll I n v e s tm e n t C o m p a n y J a m es C. W yman M a n a g e r, S t . A n th o n y & D a k o ta E le v a to r Co. I N S U R A N C E C O R P O R A T I O N N o r th w e s te r n B a n k e r J a n u a r y 1945 46 Twin City News E. MIKKEL/SON, president of Fi. delity State Bank, M inneapolis, w as nam ed a vice p resid en t of th e M in neapolis Civic & Com m erce A ssocia tion a t the o rg an izatio n ’s a n n u al m eet ing. By James M. Sutherland Lubin B oehm e of N o rth w estern N a tional B ank, M inneapolis, has been nam ed ch airm an of th e A. I. B. educa tional com m ittee of th e M innesota B ankers A ssociation. A fo rm er p resi d en t of M inneapolis C hapter, A m eri can In stitu te of B anking, he succeeds R. C. R utherford, w ho left his post as executive secretary of th e local A. I. B. ch ap ter to join natio n al h ead q u arters in New York. outside th e bank w hile on his w ay to see a doctor. He joined th e savings b ank in 1916 after earlier experience w ith the old Security N ational Bank. In 1935-36 he w as p resid en t of M inne apolis C hapter, A m erican In stitu te of B anking. V Sam uel P. M artin, 59, au d ito r of F a rm e rs & M echanics Savings Bank, M inneapolis, since 1927, dropped dead Special Correspon dent Clarence E. Hill, vice p resid en t of N o rth w estern N ational Bank, has been m ade ch airm an of th e M inne apolis Civic & Commerce A ssociation’s new com m ittee on w ar su rp lu s dis posal w hich w ill help firm s in terested in p u rchasing su rp lu s w ar goods. rsam m l a y --_— * Departing Secretary Honored Robert C. Rutherford resigned recen tly as executive secretary of the M inne apolis C hapter of the A m erican In s titu te of B an k in g to become a ssista n t to Floyd W. Larson, N atio n al A. I. B. secretary. Given a tra v e lin g bag and a W ar Bond by the M inneapolis C hapter, the above photo shows Mr. R u th erfo rd accepting his g ifts. P ictu red , from le ft to rig h t, are L. O. Olson, vice p resid en t of the M idland N atio n al B ank, M inneapolis, and a p a st p resident of M inneapolis A. I. B.; Oscar Brown, B an cred it C orporation, St. P aul, p resid en t St, P au l Chap te r; Mr. Rutherford; Chris Ries, F ed eral R eserve B ank, p resid en t M inneapolis C hapter; Bob Baker, N o rth w estern N atio n al B ank, M inneapolis, chairm an A. I. B. Forum Com m ittee; and Cal Rose, assista n t cashier, N orth w estern N atio n al B ank, and past p resid en t M inneapolis C hapter. N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 1945 ‘—1À Joseph D. S ullivan, stockholder of Columbia H eights S tate B ank since its organization in 1937, has been nam ed a director of th e bank. Sulli van, a filling statio n and garage oper ato r in Columbia H eights, is a m em ber of a fam ily w hich has lived in th a t district since 1864. Otto Brem er, ch airm an of A m erican N ational Bank, St. Paul, and in terested in a num ber of o ther banks over th e N orthw est, w as host to m ore th a n 100 persons, principally officers and di rectors of th e various B rem er banks, a t a d in n er in M innesota Club, St. Paul. George J. Johnson, senior vice presid en t of A m erican N ational, w as toastm aster. G. M. P h illip s of Caldw ell-Phillips Co., St. Paul, w as elected presid en t of th e Tw in City Bond Club a t its a n nual m eeting. O ther officers nam ed w ere R ollin G. A ndrew s of J. M. Dain & Co., M inneapolis, vice president; W arren G ochenour, Jr., of Irv in g Rice & Co., St. Paul, secretary-treasurer. M em bers of th e board of governors for tw o-year term s are H. M. Tufvesson of H. M. Byllesby & Co., J. P. Arm s of J. P. A rm s, Inc., and D onald E. Mc Farland of K alm an & Co., all of M in neapolis. Guy W. L aL one, vice p resident of F irst N ational Bank, M inneapolis, has been elected tre a su re r of M inneapolis Civic & Commerce Association. M innesota B ankers A ssociation, M innesota division of b anking and th e U niversity of M innesota w ill spon sor th e an n u al state b a n k e rs’ confer ence at th e U n iversity F e b ru a ry 12th and 13th. Canceled last year, th e conference w as rein stated afte r a poll (T u rn to page 48, please) OUR 50th YEAR 47 S t a t e m e n t o f Condi tion NORTHWESTERN NATIONAL BANK of Minneapolis M I N N E A P O L I S 2, M I N N E S O T A (Decembe r 30, 19441 JA M E S RESOURCES D I R E C T O R S F. B EL L C h a ir m a n o f B o a r d , Cash and Due from Federal Reserve and Other Banks.............................. $ 94,058,732.76 U. S. Government Securities, direct and fully guaranteed.............. ••••* 249,839,333.78 Other Bonds........................................ * 9,535,067.59 Loans and Discounts.......................... 70,513,831.90 Stock in Federal Reserve Bank in Minneapolis ....................................... 360,000.00 Customers’ Liability on Letters of Credit and A ccep tan ces................ 655,555.10 Interest Earned but notCollected. 907,276.32 Banking H ouse.................................... 3,650,000.00 133,500.88 Other Resources.................................. G e n e ra l M ills, In c . B E N T O N J . CA SE D ir e c t o r , J a n n e y , S em p le, H ill & C o m p a n y G E O R G E B. C L IF F O R D , J R . T r e a s u r e r , T h e C r e a m of W h e a t C o r p o r a tio n JO H N CRO SB Y D ir e c to r G e n e ra l M ills, Inc'. T H O M A S L . D A N IE L S V ic e P r e s i d e n t A r c h e r -D a n ie ls -M id la n d C om pany G. N E L S O N D A Y T O N P r e s id e n t T h e D a y to n C o m p a n y J O H N B. F A E G R E F a e g re an d B enson, A tto r n e y s S H I R L E Y S. F O R D P r e s id e n t Total Resources .......................... $429,653,298.33 N o r th w e s te r n N a tio n a l B a n k o f M in n e a p o lis F . P E A V E Y H E F F E L F IN G E R V ic e P r e s i d e n t F . H. P eavey and C om pany F R A N K T. H E F F E L F IN G E R LIABILITIES P r e s id e n t Capital Stock....................................... Surplus .................................................. Undivided P ro fits................................ Reserve for Contingencies............... 5,000,000.00 7,000,000.00 1,218,215.05 2,866,742.58 Total Capital Accounts..............$ 16,084,957.63 F . H. P eavey and C om pany C L A R E N C E E . H IL L V ic e P r e s i d e n t N o r th w e s te r n N a ti o n a l B a n k o f M in n e a p o lis F R A N K P. L E S L IE V ic e P r e s id e n t a n d T rea su rer T h e J o h n L e slie P a p e r Co. R O B ER T E. M ACGREGOR V ic e P r e s i d e n t Reserve for Interest, Taxes and Other Expenses.................. 1,191,597.56 Interest Collected but not Earned. . 372,622.86 Letters of Credit andAcceptances.. 655,555.10 Deposits ................................................. 411,348,565.18 (U . S. G o v e rn m e n t W a r L o a n D e p o s i t s i n c l u d e d ..................... $ 1 0 6 ,8 b 7 ,b 5 1 .6 1 ) N o r th w e s te r n N a tio n a l B a n k o f M in n e a p o lis C H A R L E S C. M A S S IE P r e s i d e n t , N o r th r u p , K in g an d Com pany RO B ER T F . PACK C h a ir m a n o f B o a r d N o r th e r n S ta te s P o w e r C om pany J O H N S. P I L L S B U R Y C h a ir m a n o f B o a r d P ills b u r y F lo u r M ills C om pany A U G U ST U S L. S E A R L E Total Liabilities.............. $429,653,298.33 P r e s id e n t ^United States Government and other securities carried at $145,782,882.19 are pledged to secure U. S. Government War Loan Deposits and other public funds and trust deposits and for other purposes as required or permitted by law. S e a r le G r a in C o m p a n y L U C I A N S. S T R O N G P r e s id e n t a n d T r e a s u re r T h e S tr o n g S c o tt M a n u f a c t u r in g Co. D. J . S T R O U S E P r e s i d e n t , T w in C ity R a p id T ra n sit C om pany HAROLD W . SW EA TT P r e s id e n t M in n e a p o lis -H o n e y w e ll R e g u la to r C o m p a n y J . CA M ERON TH O M SO N T he N o rth w e ste r n B a n k B u ild i n g — F a v o r e d b y b u s i n e s s m e n w h o s e le c t t h e i r o ffic e h o m e s f o r p r e s tig e a n d s tr a te g ic lo c a tio n . P r e s id e n t N o r th w e s t B a n c o r p o r a tio n TH EO D O R E W OLD C h a ir m a n o f B o a r d N o r th w e s te r n N a ti o n a l B a n k o f M in n e a p o lis V A L E N T IN E W U R T E L E P r e s id e n t M in n e s o ta L in s e e d O il P a in t C om pany M E M B E R OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 N o r th w e s te r n B a n k e r J a n u a r y 19^5 48 • M I N N ESOT A NE WS • Itasca County Group Meets TWIN CITY NEWS of b anks w hich indicated m ore th a n 200 w ill send delegates. Julian B. Baird, vice p resid en t of F irs t N ational B ank, St. Paul, and A rthur R. U pgren, vice p resid en t and econom ist of F ederal R eserve B ank of M inneapolis, have been appointed by th e Inter-A m erican Com m ercial A rb itratio n Com m ission of th e PanA m erican U nion as m em bers of a N orth w est com m ittee to aid ex p o rters w ho face d isputes in b u siness tr a n s actions w ith South A m erican firms. A t the m eeting of th e Itasca County B ankers A ssociation at G rand Rapids, M innesota, recently, H. J. Dockstader, cashier of th e F irs t N ational B ank of Bovey, w as elected vice president. H a r vey L atvala of th e F irs t N ational in N ashw auk w as elected president; Rob e rt Cam eron, D eer R iver, secretary, and W. G. King, G rand Rapids, tre a s urer. Add to Bank Staff A t a recen t m eeting of stockholders of th e Root R iver S tate Bank, Chat- First and A m erican N ation al B an k Duluth, Minnesota Condensed Statement o f Condition December 30, 1944 RESOURCES Cash and Due From Banks................................... $13,280,855.57 U. S. Government Securities................................ 44,215,299.50 Municipal Securities .............................................. 1,136,788.00 Other Bonds and Securities.................................. 1,477,310.75 Loans and Discounts.............................................. 8,567,099.11 Federal Reserve Bank Stock................................ 105,000.00 Banking House ....................................................... 1.00 American Exchange Property.............................. 1.00 161,954.82 Interest Earned but Not Collected...................... Overdrafts ................................................................. 2,990.58 $68,947,300.33 L IA B IL IT IE S Capital Stock ................................. $2,000,000.00 Surplus ........................................... 1,500,000.00 Undivided P r o fits ........................ 760,448.97 Reserves ......................................... 700,000.00 Total Capital Accounts................................ Reserve for Interest, Taxes and Expenses Discount Not Earned.................................. Deposits ........................................................... D u lu th’s Largest and O ldest Bank celebrates sixty-five years of continual service to banking and business houses of the N orthw est. FEDERAL A FFILIA T ED N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D EPO SIT W ITH IN SU R A N C E NORTHW EST J a n u a r y Í9J5 Association Names Officers The Douglas C ounty B ankers Asso ciation’s an n u al m eeting w as held re cently a t A lexandria, M innesota. George B uscher of A lexandria w as elected president, to succeed I. S. Saettre of Evansville. N. E. Olson of Osakis w as nam ed vice presid en t and Jim Mc Gee of A lexandria becam e secretarytreasu rer. Clearing House Gathering N early fo rty bankers, rep resen tin g every ban k in th e four counties served by th e N orth w estern M innesota C lear ing H ouse A ssociation, attended th e organization’s an n u al fall m eeting in Thief R iver Falls, M innesota, recently. H. M. H enem an of W arroad, vice p resi dent, presided. The principal speaker on th e afterd in n er program w as W illiam D uncan, Jr., secretary of th e M innesota B ank ers Association. S hort talk s w ere also given by W ilbur M cLean of D uluth, president, and George A. Beito of Gonvick, vice president. Ask for Bank at Racine A pplication for a certificate to oper ate a b ank at Racine, M innesota, w hich is now w ith o u t b an king facilities, has been m ade to th e com m erce com m is sion at St. P aul by th re e incorporators w ho are the ow ners of th e F irs t S tate B ank of G rand Meadow, G. N. Reppe, president; E. M. Reppe, vice president, and L. W. Reppe B urns, a ssistan t cash ier. The b ank w ill be know n as th e F irs t State B ank of Racine. Extend Corporate Existence $ 4,960,448.97 201,055.99 33,008.76 63,752,786.61 $68,947,300.33 M EM BER field, M innesota, provision w as m ade for an increase in th e n um ber of direc tors. In accordance w ith th e change, A. O. Kroger; w as elected as an addi tional director. A t a m eeting of th e directors B eth O nstine w as elected as assistan t cashier of th e bank. CO R PO RA TIO N BA N CO RPO RA TIO N Stockholders in th e New London, M innesota, bank, the F arm ers State B ank of New London, last m onth voted to extend th e corporate existence of th e ir b ank from Ja n u a ry 11, 1945, w hen it w as to expire, to Ja n u a ry 11, 1975, it w as announced by th e officers, P. L. P eterson, vice president, and A lvin Ness, cashier. Minneapolis Bank Director Joseph D. Sullivan, M inneapolis, w as elected a director of th e Columbia H eights State B ank at a m eeting of th e board of directors. He succeeds George S. W ilson, MinOUR 50th YEAR 49 neapolis, from w hom he recen tly p u r chased th e la tte r’s stock. The b a n k ’s reso u rces reach ed th e one m illion dol lar m a rk in June. S ta tem en t o f Condition Olson Sells a Bond T he Golden Glove m ovem ent as spon sored by T he S ta r Journal and T ribune C harities, Inc., in M inneapolis, did its b it in th e recen t W ar L oan drive. To set up a fu n d for postw ar ath letic activ ities for re tu rn in g v eteran s, th e B etter Sports C om m ittee w hich su pervises the funds has invested $3,000 in bonds. Jam es L ittle, ju n io r flyw eight from th e T h e F irst N a t i o n a l Bank O F S A IN T P A U L as of December 30, 1944 R esources Jam es L ittle and Law rence O. Olson N o rth Side, rep re se n te d all Golden G lovers w h en he pu rch ased the bonds from L aw rence O. Olson, vice p resid en t of th e M idland N ational B ank as pic tu re d here. T his am o u n t re p re se n ts a su rp lu s in th e fund as a re su lt of c u r tailed activ ities because of th e w ar. W H A T WILL DEPOSITS BE (C ontinued from page 24) If th e p rojections show n in th e tables a re not sufficiently clear, we believe th e follow ing explan atio n w ill suffice. Explanation of T ab les In p re p a rin g this, it is assum ed th a t th e peak of 300 billion dollars w ould be reduced 25 billion by salvage (a liberal red u ctio n estim ate), and th a t 30 billion w ill be held in govern m en t agencies and tr u s t funds. T his w ould leave ev en tu ally a to tal of 245 billion dollars in th e h an d s of th e public. The Bond Table Colum n 1: Indicates th e holdings by vario u s classifications of th e am ount of bonds in public h an d s on J a n u a ry 1, 1944. Colum n 2: Subsequent issues of bonds to be ta k e n by th e public to b rin g th e total to 245 billion, w ould am o u n t to 93.2 billion. In asm u ch as for th e first half of 1944 th e com m er cial b an k s w ere e ith e r directly or in d irectly p u rch asers of ab o u t onefo u rth of th e additional bond issues, we have estim ated th a t th e ir acq u ire m ents of th e bond offerings, y e t to OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cash on Hand and Due from Banks $61,783,018.04 U. S. Government Securities 169,742,436.60 Bonds and Securities 5,947,816.21 Loans and Discounts 56,599,432.94 Interest Earned but not Collected 606,113.04 Customers’ Liability on Account of Acceptances, Letters of Credit and Foreign Bills 60,432.13 Stock in Federal Reserve Bank 450,000.00 Bank and Office Building 2,600,000.00 3297,789,248.96 L ia b il it ie s $6,000,000.00 9,000,000.00 Capital Stock Surplus Undivided Profits Unallocated Reserves for Losses Reserve for Accrued Taxes, Interest and Expenses Reserve of Manufacturers and Others on Notes purchased from them Discount Collected but not Earned Acceptances, Letters of Credit and Foreign Bills Deposits 2,399,441-95 I,253>34°-5° 1,184,845.08 65,007.21 73,960.78 60,432.13 277,752,221.31 (Includes United States War Loan Deposit $71,508,614.72) 3297,789, 248-96 U nited States Government obligations and other securities carried at $96,469,377.81 in the foregoing statement are deposit ed to secure public fu n d s and f o r other purposes required by law. F rederic R i c h a r d C. L i l l y , President R. B i g e l o w , Chairman, Board of Directors D e pa r tm en t of B anks and B ankers Alden B. Lathrop, Vice President Lee A. Sauer, Assistant Cashier Rodney F. Sturley, Cashier Elmer M.Volkenant, Asst. Cashier Wallace L. Boss, Assistant Cashier Member Federal D eposit Insurance Corporation AFFILIATED WITH FIRST BANK STOCK CORPORATION N o r th w e s te r n B a n k e r J a n u a r y 19't5 50 •MINNESOTA come, w ould be 25 billion. The a rb i tra ry am ounts allo tted to F ederal Re serve B anks, M utual Savings Banks, and In su ran ce Com panies, are based on th e approxim ate p ro p o rtio n of the total p reviously held. The rem aining am ount, 48.2 billion, is th e am o u n t left for “all o th ers.” Column 3: E stim ates th e redeem ing or sale by “all o th e rs” of 25 billion, and th e addition of th is am ount to com m ercial b an k holdings. It is con ceivable th a t th is estim ate m ight be too low. Colum n 4: T he resu lt, therefore, NE WS * at th e “p eak ” date, w ould be the holding by com m ercial banks of ap p roxim ately 110 billion of governm ent bonds. The Bank Situation Table Column A—A pproxim ate statem en t of all com m ercial banks as of Ja n u a ry 1, 1944. Colum n B—Reflects addition of the 50 billion of bonds y et to be acquired, and adds this am ount to th e deposits w hich w ill be created by this addi tional purchase. Column C—M akes allow ance for a com m ercial loan expansion of 10 bil lion, w ith corresponding deposit in crease. This am ount is slightly larger, it is believed, th a n th e average esti m ate. Column D—C ontem plates a re tu rn of a substan tial portion of th e 23 bil lion outstanding curren cy holdings at the tim e th e table w as prepared. P revious to 1940, the o u tstanding c u r rency w as less th a n 7 billion. It w ould seem quite conservative to estim ate th a t th is item w ould be reduced at least to 15 billion at the “p eak ” date. T here is, therefore, added to the de posits 8 billion dollars to come from th is source, and th is am ount is also reflected in the cash reserve. H O W DIRECTORS DIRECT REPORT OF THE CONDITION OF <7'h e J llv -e B to c J z N a tio + ta l H a n Jz S IO U X C IT Y , IO W A At the close of business December 30, 1944 RESOURCES L oans a n d D iscounts U nited S tates Bonds a n d N otes M u n icip al Bonds F e d e ra l R eserv e Bank Stock In terest E arn ed , Not C ollected C a sh on H an d a n d Due from B anks S 2,687,212.01 10,358,338.34 583,948.61 18,000.00 48,037.38 7,035,339.46 $20.730,905.80 LIABILITIES C a p ita l Stock S u rp lu s .............................................................. U n d iv id ed Profits R e serv es for In terest a n d T ax es R eserv e for C o ntingencies In terest C o llected, Not E arn ed D eposits: Time a n d D e m a n d ......................................... U. S. W a r Loan D eposit A ccount 300.000. 00 350.000. 00 38.348.31 68,325.30 120.807.02 6,164.97 17,352.773.72 2,494,486.48 19,847.260.20 $20,730.905.80 C. L. F R E D R I C K S E N P r e s id e n t W . C. S C H E N K C ash ier J. S. H A V E R A s s is ta n t C ash ier W . G. N E L S O N A ss is t a n t V ic e P r e s id e n t C. L . A D A M S A s s is t a n t C a sh ier JA M E S L. S M IT H A u d ito r M. A. W IL S O N V ic e P r e s id e n t H . C. L I N D U S K I A s s is ta n t C ash ier and M a n a g er of A ir B a s e F a c ilit y T M E 3 L ive St o c k W T / O N Á Í :• BA NK "■ / J ? . : • .■ O F S I O U X C I T Y , IO W A ' MEMBER* .......... " " y /te ........................ ... ¿câ F .D .I.C . " t/te https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 ASSETS AND LIABILITIES (C ontinued from page 19) 31, 1943 and th en declined to $58.4 billions by Ju n e 30, 1944. Tim e deposits of individuals, p a rt nerships, and corporations increased 31 p er cent from $25.4 billions in De cem ber 1939 to $33.4 billions in Ju n e 1944. U nited States G overnm ent deposits (including postal savings deposits) in creased from $0.9 billions in D ecem ber 1939 to $10.5 billions in D ecem ber 1943 and to $19.7 billions in Ju n e 1944. Capital accounts of all banks in creased from $8.3 billions to $9.4 bil lions from Decem ber 1939 th ro u g h Ju n e 1944. Capital notes and deben tu re s and p referred stock decreased $0.2 billions du rin g th e period w h ere as com m on stock increased $0.1 bil lions. Surplus, undivided profits, and reserves increased $1.2 billions. A -' ............... Cause T o W orry 'Z M em ber F e d e ra l D eposit In su ran ce C orporation Northwestern Banker . I (C ontinued from page 16) ties of its board w hich is an integral d ep artm en t of th e b an k and w hose com position is all im p o rtan t in its p e r form ance. “Our b ank has been fo rtu n ate in the com position of our board. W e have had for m any y ears a directo rate of m em bers who, successful in th e ir own businesses, have been attra c te d to th is b ank because of its sound banking practices and w ho have bro u g h t to us not only th e ir own judicious advice but have acquired know ledge of p rac tices necessary to operate a successful b an k .” /ttA j/s 1st Soldier (as bom bs b u rst over head): No need to w orry, if a bomb has m y nam e on it, I ’ll get it anyw ay. 2nd Same: B ut m y n am e’s Smith! O U R 5 0 th Y E A R 51 th e auditing d ep artm en t of th e F irst B ank Stock C orporation, and Ross E. H unt, w ho comes from P a rk River, N orth Dakota, w here he w as cashier of th e F irs t State Bank. Mr. H u n t w as also form erly w ith the F irst B ank Stock C orporation, serving in th e credit departm ent. SOUTH D A K O TA A.B.A. Committeeman NEW S H . R. K IB B E E , JR . P r e s id e n t M itch ell A c tin g S e c r e ta r y L O IS J . H A L Y O R S E N Named District Director T. M. B risbine, cashier of th e San bo rn C ounty B ank in W oonsocket, South D akota, w as elected directo r of D istrict 6 of th e G reater South D akota A ssociation at a m eeting of th e m em bers of th e d istric t in H uron. Mr. B risbine, fo rm er p resid en t of th e South D akota B ankers A ssociation and fo rm er m em ber of th e South D akota B anking Com m ission, succeeds Jess C. B u rn s of H uron, w ho has served six years, or tw o term s, as director. Banker Dies Suddenly L. S. E aton, a ssista n t cashier of th e S tate B ank of A lcester, South Dakota, w as ta k e n suddenly ill and passed aw ay a t a M itchell hosp ital recently. Mr. E ato n w as about 50 y ears old and had been connected w ith th e State B ank of A lcester for th e p ast 25 years. W ith Iroquois Bank C. C. F ro h lech of Clark, South Da kota, has joined th e staff of th e F a rm ers and M erchants S tate B ank, Iro quois, South D akota, and w ill ta k e th e place of Mrs. L. A. H ollenbeck, w ho is giving up h e r position as bookkeeper w hich she has held for several years. Joins Bank Staff C h rist G rondahl, grocer and m eat dealer of Clear Lake, South D akota, for m ore th a n 20 years, has accepted a posi tio n in th e Deuel C ounty N ational B ank of Clear Lake. He succeeds Jo h n Thoelke, w ho m oved to G ary th e first of th e year. FDIC Member T he new G ary State B ank, Gary, South D akota, has qualified for in s u r ance of deposits by th e F ed eral De posit In su ra n c e C orporation. Two Employes Added T he services of H. C. B ierw irth of Sioux City, Iowa, and L innea P eterso n have been secured to add to th e workO U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G E O R G E M. S T A R R IN G S ecreta ry -T rea su rer H u ro n (In the Service) ing force of th e State B ank of Alcester, A lcester, South Dakota. Mr. B ierw irth w as th e executive vice p resid en t of th e Iow a Jo in t L and B ank and has been associated w ith th is in sti tu tio n some ten years. The b an k stock ow ned by H. B. B a rtlett has been purchased by Mr. B ierw irth and he w ill take th e fo rm er’s position on th e board of directors. E F. McKellips, th e m anaging officer and executive vice presid en t of th e bank, w ill sh ift p a rt of his load by tu rn in g over th e post of cashier to Mr. B ier w irth. Miss P eterso n has been secured to fill th e position of b an k stenographer. Christmas Party Thirty-five guests attended th e an n u al C hristm as p a rty for th e Security B ank and T ru st, Madison, South Da kota, em ployes and th e ir fam ilies and th e directors and th e ir fam ilies. The a fte r d in n er program w as introduced by th e b an k president, W. M. W illy. The evening w as concluded w ith an exchange of gifts. Key Banker F o r th e n in th consecutive year, B rookings county, South Dakota, banks have particip ated w ith m ore th a n 150 o th er banks in South D akota to w in the an n u al A m erican B ankers A ssociation “1,000-Plus” aw ard for o u tstanding service to farm ers, it w as announced last m onth by C harles Lee, cashier of th e F irs t N ational B ank of Volga, who has been designated by th e South Da ko ta B ankers A ssociation as Brookings county key banker. Sioux Falls Officers F illing of tw o new a ssistan t cashier positions in th e N ational B ank of South Dakota, Sioux Falls, South Da kota, one by prom otion and th e o ther by added personnel, w as announced re cently by Tom S. H arkison, p resid en t of th e in stitu tio n . The new officers are: W. J. Corcoran, auditor for the p ast th ree y ears and previously w ith Jo h n N. Thom son, vice p resident and cashier of th e B ank of Centerville, South Dakota, w as nam ed to th e ch air m anship of the A m erican B ankers A ssociation subcom m ittee on agricul tu ra l credit of th e com m ittee on fed eral legislation, last m onth. Mr. Thom son, w ho w as nam ed to the subcom m ittee last year, succeeded C harles T. O’Neill of C harlottesville, V irginia, as chairm an. As such he heads one of the 40 w orking groups in th e nationw ide ban k ers association. Postwar Credit Committee E stab lish m en t of a postw ar credit com m ittee of th e South D akota B ank ers A ssociation w as announced th ro u g h th e organization’s state office at H uron by H. R. Kibbee, Jr., M itchell, p resi dent. H eading the com m ittee is R alph M. W atson, presid en t of th e N orthw est Security N ational B ank of Sioux Falls. O ther m em bers of th e new com m it tee are: R. S. Banfield, presid en t of th e A ber deen N ational Bank; A. E. Dahl, p resi dent of the R apid City N ational Bank; J. M. Patton, p resident of th e M itchell N ational Bank; J. M. Lloyd, Y ankton, presid en t of th e A m erican State Bank; C. H. L ockhard, W atertow n, president of th e F irst Citizens N ational Bank; W. M. W illy, Madison, vice president of th e Security B ank and T ru st Com pany, and Jo h n N. Thom son, C enter ville, vice p resid en t and cashier of the B ank of Centerville. Mr. Thom son also is a m em ber of th e postw ar credit com m ission of th e A m erican B ankers Association. Name Iroquois Banker L. A. Hollenbeck, cashier of the F a rm e rs and M erchants B ank of Iro quois, South Dakota, has been desig nated by th e South D akota B ankers A ssociation as K ingsbury county key banker. The aw ard, w hich is an honor shared by all South D akota banks, is m ade on th e basis of “re g u la r” and “e x tra ” services available from th e banks to th e ir farm er custom ers. This y ear rec ognition is given to banks in South D akota and to th e South D akota B ank ers A ssociation for exceptional w ork in farm credit, and for constructive p ro j ects to im prove farm ing m ethods. N o r th w e s te r n B a n k e r J a n u a r y 19J5 52 • SOUTH DAKOTA NEWS Am ong th e delegates atten d in g th e forum w as Dr. W. R. Laird, South D akota CED chairm an, w ho is a di A L P H M. W ATSON, p resid en t of recto r of th e N orthw est Security N a th e N o rth w est S ecurity N ational tional Bank. Bank, w as one of th re e m ain speakers In his speech, W atson em phasized from South D akota at a regional forum th a t if b ankers m eet th e te st and fi of com m unity chairm en of th e Com nance sm all business in th e ir own m ittee for Econom ic D evelopm ent, com m unities, th ere will be no reason held in M inneapolis. for th e governm ent to encroach fu r W atson spoke on th e b a n k s’ p a rt in th e r on th e b a n k s’ function of loaning financing p o stw ar sm all business. m oney. O ther speak ers w ere S pencer S. Shaw, W atertow n, South D akota, and! A. Sioux Falls b an k ers played a leading M. E berle, B rookings, South D akota. p a rt in opening a state-w ide cam paign Sioux Falls News R Guaranty Trust Company of New York F ifth Ave. at 4 4 th St. 1 4 0 Broadway M adison A ve. at 6 0 th St. L on d on : 11 B irchin L ane, E. C. 3 ; B ush H ouse, W . C. 2 Condensed Statement of Condition, December 31, 1944 RESO U R C ES Cash on H and , in F ederal R eserve B an k , and D ue from B an k s and B a n k e r s ........................... ...... $ 5 1 9 ,8 7 6 ,5 6 8 .1 5 U. S. G overnm ent O b ligation s . . . . . . . 2 ,3 6 2 ,4 8 1 ,3 6 7 .0 7 Loans and B ills P urch ased ............................................... 8 2 6 ,3 5 6 ,9 7 0 .1 9 P u b lic S e c u r it i e s ..................................$ 5 5 ,2 5 3 ,5 2 4 .5 3 Stock o f th e F ederal R eserve B ank 7 ,8 0 0 ,0 0 0 .0 0 O ther S ecurities and O b ligation s . 2 7 ,0 4 9 ,2 3 6 .8 6 Credits G ranted on A cceptan ces . 3 .0 6 0 ,9 7 9 .9 0 Accrued In terest and A ccounts R e c e i v a b l e ........................................ 1 2 ,1 8 8 ,2 8 6 .5 9 R eal Estate B on d s and M ortgages . 1 ,6 0 9 ,4 9 3 .0 8 Bank B u ild in g s O ther Real Estate . . . . . . . . . . Total R esou rces . . . . . . . . . . . . . . . . 1 0 6 ,9 6 1 ,5 2 0 .9 6 9 ,6 4 9 ,1 7 2 .1 9 8 3 6 ,2 8 2 .9 8 . . $ 3 ,8 2 6 ,1 6 1 ,8 8 1 .5 4 LIABILITIES Capital 9 0 ,0 0 0 ,0 0 0 .0 0 Su rp lus F u n d .................................. 1 7 0 ,0 0 0 ,0 0 0 .0 0 U n divided P r o f i t s ........................... 4 2 ,2 2 2 ,5 7 0 .9 1 T otal C apital F unds . , . ! I ! I $ 3 0 2 ,2 2 2 ,5 7 0 .9 1 G eneral C on tin gen cy R e s e r v e ....................................... 3 3 ,5 2 0 ,9 0 2 .9 1 D ep osits ........................................... $ 3 ,4 3 2 ,8 8 7 ,6 0 4 .5 4 T reasurer’s C hecks O utstan ding 8 ,1 4 9 ,0 3 6 .2 1 Total D eposits . . . . . . . . . 3 ,4 4 1 ,0 3 6 ,6 4 0 ,7 5 F ederal F unds P urch ased . . . . . . . . 2 1 ,7 5 0 ,0 0 0 .0 0 A c c e p t a n c e s ..................................$ 6 ,5 7 8 ,0 8 4 .2 2 L ess: Own A cceptan ces H eld for In vestm en t . * . 3 ,5 1 7 ,1 0 4 .3 2 i~~ 3 .0 6 0 ,9 7 9 .9 0 L iability as E nd orser o n A ccept ances and F oreign B ills . . 8 2 ,5 9 0 .0 0 F oreign F unds B orrow ed . . 2 4 6 ,4 8 6 .0 0 D ividend P ayab le January 2, 1 9 4 5 ....................................... . 2 .7 0 0 ,0 0 0 .0 0 Item s in T ransit w ith F oreign B ranches and N et D ifferen ce in B alances b etw een O ffices D ue to D ifferen t Statem en t D ates o f F oreign B ranches . 8 1 5 ,3 2 4 .1 2 A ccounts P ayab le, R eserve for E x p en ses, T axes, etc. . . 2 0 ,7 2 6 ,3 8 6 .9 5 2 7 ,6 3 1 ,7 6 6 .9 7 Total L iabilities $ 3 ,8 2 6 ,1 6 1 ,8 8 1 .5 4 Securities carried at $1,211,049,727.96 in the above Statement are pledged to qualify for fiduciary powers, to secure public moneys as required by law, and for other purposes. This Statement includes the resources and liabilities of the English and French Branches as of December 26, 1944, and Belgian Branch as of October 31, 1941. M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 1945 • to double the m em bership and budget of th e Greater South D akota A sso cia tion. Sioux Falls w as selected as th e key city in w hich to launch the o rg an ization’s first concerted m em bership drive and efforts w ere term ed highly successful. W ith success already assu red fo r Sioux Falls in th e 6th W ar Loan drive, confidence w as expressed by C. A. C hristopherson, executive d irector of the state w ar savings staff and p resi den t of th e U nion Savings Bank, th a t the sta te ’s individual quota w ould also, be exceeded by th e close of th e drive. A t th e ann u al m eeting of directors, of th e Sioux E m pire F a ir A ssociation, F rank Cinkle, cashier of th e N ational B ank of South Dakota, w as re-elected tre a su re r of the association. A r rangem ents have already been m ade for an o u tstanding revue and carnival for the 1945 edition of th e fair, sched uled for A ugust 21st-26th. W hen the F ed eral R eserve B ank of M inneapolis held a conference at M itchell last m onth, Sioux Falls re p resen tativ es p resen t w ere R alph M. W atson, p resident of th e N orthw est Security N ational Bank, and P. H. Mc D ow ell, vice presid en t and tru s t officer of the bank. A sim ilar conference w as held a t R apid City. A t the m eetings, the F ederal Re serve B ank’s economic and statistical staff presented th e resu lts of research on postw ar problem s. Speakers in cluded F ra n k lin P arsons, an agricul tu ra l econom ist; P aul McCracken,, econom ist, w ho discussed p ast and fu tu re tren d s in bank deposits; A rth u r U pgren, vice p resid en t and econom ist, who discussed th e relation of South D akota business to national and in tern atio n al affairs, and Oliver Powell, first vice president, w ho outlined South D akota b ank earnings and assets. Pvt. W illiam H. B renton, son of W. Brenton, pro m in en t D es Moines banker, has com pleted his aerial radio tra in in g a t Sioux F alls A rm y A ir Field, and has rep orted a t Las Vegas, Nevada, for fu rth e r tra in ing. Harold Oliver A. B ray, a ssistan t cashier of th e N o rth w est Security N ational Bank, is a pro m in en t figure in Sioux Falls M asonic organizations. In th e p ast m onth he w as re-elected tre a su re r of M innehaha Lodge No. 5 and E l Riad S hrine Tem ple, secretary of Sioux Falls C hapter No. 2, RAM, and re corder of A lpha Council No. 1 and O U R 5 0 th Y E A R 53 • SOUTH DAKOTA NE WS C yrene C om m andry No. 2. B ray has been S hrin e tre a s u re r h ere for 24 years. tional Bank, presided at th e m eeting. He has been nam ed NBAA vice p resi den t for South Dakota. P. H. M cD ow ell, vice p resid en t and tru s t officer of th e N o rth w est Security N ational B ank, presided at a recen t m eeting of th e Sioux F alls K nife and F o rk Club, a t w hich Jam es Pond, noted lecture bu reau m anager, spoke on th e subject, “C elebrities I H ave M et.” W. E. Perrenoud, cashier of th e F irs t N ational B ank and T ru st Com pany, is now serving as a m em ber of th e public relations com m ittee of th e South D akota B ankers A ssociation. W ide publicity follow ed an exploit of Lt. Donal E ngen, first pilot on a B-24 bom ber an d son of H. O. E n gen , cashier of th e U nion Savings B ank. J u s t before going overseas, Lt. E ngen took th e 10 m en of his flying crew to Hollyw ood and a rra n g e d for th em to v isit D eanna D urbin, m ovie sta r They sp en t th e e n tire day as guests of Miss D urbin. L ie u te n a n t E n g en had m et th e sta r in 1939, w hen, as a high school stu d en t, he w ro te a book to ea rn funds for th e trip to th e film capital. L ieu te n a n t E n g en h as tw o b ro th e rs in th e service, L ie u te n a n t Lee E ngen, se rv ing w ith an in fa n try u n it on th e w e st ern fro n t, and Bob E ngen, a p h a r m acist’s m ate in th e N avy w ith th e Pacific fleet. A large crow d w as on h an d for th e an n u al C hristm as p a rty for em ployes of th e N orth w est Secu rity N ational Bank, a t th e C ataract Hotel. Follow ing a b anquet, gifts w ere d istrib u ted and an evening of gam es and e n te r tain m e n t w as enjoyed. R alph M. W atson, p resid en t of th e N o rth w est S ecurity N ational Bank, w as nam ed ch airm an of a postw ar credit com m ittee of th e South D akota B an k ers A ssociation by H. R. Kibbee, Jr., M itchell, president. Kibbee said South D akota w ould join a nation-w ide m ovem ent to m ake b an k cred it av ail able for ev ery sound and constructive need of ag ricultu re, in d u stry and business. T he com m ittee is to study m ethods w h ereb y every com petent individual, firm and corporation in the state th a t needs b an k cred it w ill be accom m odated if th e m oney is to be used for som e co n stru ctiv e purpose th a t will serve th e p riv ate en terp rise econom y of th is country. S um ner Sinclair, au d ito r of th e N o rth w e ste rn N ational B ank of M in neapolis, v isited Sioux F alls recently to organize a c h a p te r of th e N ational A ssociation of B ank A uditors and Com ptrollers. He w as a guest of offi cers and em ployes of th e four Sioux Falls banks. M elvin I. O nus, a ssista n t cashier of th e N o rth w est S ecurity N a O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banker Addresses BPW T. R alph M attson, m anager of th e H ot Springs B ranch of th e F irs t N a tional B ank of th e Black Hills, ad dressed a group of B usiness and P ro * fessional W om en at a m eeting held re : cently in H ot Springs. Mr. M attson discussed postw ar con stru ctio n and organization. Bank Gives 4-H Awards P ennington county 4-H Club leaders w ere honored recently in R apid City, South Dakota, at the sixth an n u al Rec ognition b an quet in th e M ethodist Church. A w ards of $5, donated by th e Rapid City N ational B ank to facilitate club w ork, w ere m ade to 12 clubs w hich had com pleted th e 1944 program . STATEM ENT OF CONDITION NORTHWEST SECURITY NATIONAL BANK oí Sioux Falls, South Dakota “S o u th D a k o ta s L eading B ank D E C E M B E R 30, 1944 RESOURCES C a s h o n H a n d , in F e d e r a l R e s e r v e B a n k , a n d D u e fro m B a n k s a n d B a n k e r s .............................................................................................................. $ 6,267,702.61 U . S. G o v e r n m e n t O b l i g a t i o n s .......................................................................... 18,494,929.67 S ta t e a n d M u n ic i p a l B o n d s ................................................................................. 838,075.91 O th e r B o n d s a n d S e c u r i t i e s ................................................................................. 476,859.07 S to c k in F e d e r a l R e s e r v e B a n k in M i n n e a p o l i s ...................................................................... O v e r d r a f ts .................................................................................................................................................... L o a n s a n d D i s c o u n t s ................................................................................................................................ B a n k in g H o u s e s ......................................................................................................................................... Includes B anking Houses a t Sioux F alls, Brookings, C ham berlain, D ell R apids, Gregory, H uron and M adison, all clear of encum brance. I n t e r e s t E a r n e d b u t N o t C o ll e c t e d ................................................................................................. $26,077,567.26 30,000.00 1,057.41 3,671,884.31 300,000.00 96,480.63 T O T A L ..................................................................................................................................................... $30,176,989.61 L IA B IL IT IE S C a p ita l S to c k — C o m m o n .......................................................................................$ S u r p lu s ........................................................................................................................... U n d iv id e d P r o f its a n d R e s e r v e s ........................................................................ 500,000.00 500,000.00 505,289.20 R e s e r v e fo r I n t e r e s t , T a x e s , a n d O th e r E x p e n s e s .................................................................... I n t e r e s t C o lle c te d b u t N o t E a r n e d ............................................................................ D e p o s its : T im e .............................................................................................................................. $ 3,946,759.83 D e m a n d ...................................................................................................................... 22,099,468.53 U . S. W a r L o a n .................................................................................................... 2,492,300.37 $ 1,505,289.20 122,497.89 10,673.79 $28,538,528.73 T O T A L ..................................................................................................................................................... $30,176,989.61 BRANCHES AT B R O O K IN G S , C H A M B E R L A IN , D E L L R A P ID S , G R E G O R Y , H U R O N , M A D IS O N B A N K IN G F A C IL IT Y A T SIO U X FALLS ARMY AIR FIE L D S io u x F a l l s , S . D . FR ED H. H O L L IS T E R Chairman R A L PH M. W ATSON President U n ite d S ta te s D e p o sita r y M em ber F ederal D e p o sit Insu ran ce C orporation N o r th w e s te r n B a n k e r J a n u a r y Î9J5 54 th e Production C redit A ssociations, w hich are governm ent subsidized lend ing agencies, totaled $2,078,000. The rep o rt also show s th a t N orth D akota banks have available for farm production loans a total of $66,765,000 in 1944, or approxim ately five tim es th e am ount needed to tak e care of th e a n nual needs of all farm s in th e state for this kind of credit. NORTH D A KO TA NEW S A . C. ID S Y O O G P r e s id e n t G ra fto n Joins Jamestown Bank E d M osher, a ssista n t cashier of th e F irs t N ational Bank, V alley City, N orth Dakota, th e p ast four years, has been nam ed cashier of th e N ational B ank in Jam estow n and sta rte d w ork th e re re cently. Leaves Park River Bank Ross E. H unt, w ho has been em ployed a t th e F irs t S tate B ank in P a rk R iver, N o rth Dakota, has accepted a position w ith th e N ational B ank of South D akota a t Sioux Falls. H is posi tion a t P a rk R iver has been filled by Carl Sherw ood of Lidgerw ood. Bank President Dies Jo h n Ottis, 63, p resid en t of th e K in dred State B ank a t K indred, N orth Dakota, died recen tly in a F arg o hos p ital w h ere he had been a p a tie n t since Septem ber. Mr. Ottis had been asso ciated w ith th e K indred b an k since 1902 and served as cashier before being appointed president. He served as C. C. W A T T A M S e c r e ta r y F arg o p resid en t of th e K indred board of edu cation for 25 years, presid en t of the K indred Com m ercial Club, and directed various w ar activities in th e com m u nity. Compete for Award F o r th e th irte e n th consecutive year, N orth D akota banks have com peted in th e contest to w in th e an n u al A m erican B ankers A ssociation “1,000-plus” aw ard for o u tstan d in g service to farm ers, it w as announced by F. A. Irish, ch air m an of board of th e F irs t N ational B ank & T ru st Com pany of Fargo, and tre a s u re r of th e G reater N orth D akota Association. N o rth D akota farm ers at th e begin ning of July, 1944, w ere using $15,386,000 of b an k credit, of w hich $2,921,000 rep resen ted com m odity loans, $747,000 w ere farm m ortgages, and $11,780,000 w ere direct loans to finance farm ers’ c u rre n t operating expenses or livestock and equipm ent. At the sam e tim e N o rth D akota farm ers’ loan held by The First National Bank and Trust Company of Fargo FARGO, NORTH DAKOTA Statement of C onditi RESOU RCES L oans a n d D is c o u n ts ...........................$ 1 , 4 5 8 ,9 6 0 . 5 6 O v e r d r a f t s ........... 1 , 8 9 6 .5 3 S tock in F e d e ra l Reserve B a n k . . 2 1 , 0 0 0 .0 0 B ank B u i l d i n g .......................... . 2 1 5 , 0 0 0 .0 0 I n te r e s t E a rn e d , N o t C o l le c t e d .. 5 0 . 6 7 9 .9 3 Q uick A ssets: * U. S. G ov’t . B onds . . . $ 1 1 , 9 6 4 ,4 3 6 . 0 3 m u n ic ip a l B onds 3 3 6 , 9 6 6 .2 2 ’ O th e r B o n d s . . 2 0 6 , 0 2 3 .9 9 C ash & d u e from B a n k s 4 , 1 9 7 ,9 6 0 . 8 8 December 30, 1944 L IA B IL IT IE S 3 5 0 , 0 0 0 .0 0 C a p ita l ..................................................... $ ............................................... 3 5 0 , 0 0 0 .0 0 S u rp lu s U n d iv id ed P ro fits & R eserv es. . 2 5 0 , 6 1 5 .4 7 I n te r e s t C o lle c te d , N o t E a r n e d . . 8 ,0 8 2 .0 1 D ep o sits (In c lu d in g W a r L oan D ep o sits, $ 2 , 2 5 8 . 6 9 1 . 2 2 ) . 1 7 , 4 9 4 ,2 2 6 . 6 6 1 6 , 7 0 5 ,3 8 7 . 1 2 $ 1 8 , 4 5 2 ,9 2 4 . 1 4 *At market or $ 1 8 , 4 5 2 ,9 2 4 . 1 4 less. Officers F. G. H. G. A. H. D. W. I R I S H ............C h a ir m a n p f th e B o a rd N E S B I T ..................................... P r e s id e n t C R O S B Y ....................... V ic e P r e s id e n t J E N S O N . . . .V ic e P r e s , a n d C a s h ie r G. R. M. M. H . M A Y ..........................A s s is ta n t J . S C H M A L L E N . . . . A s s is ta n t W . L O F F E R . ............ A s s is ta n t C. F R E M S T A D ......... A s s is ta n t T h e O ldest B a n k in N o rth D akota M e m b er o f th e F e d e r a l D e p o s it In su r a n c e C o rp o ra tio n A ffiliated w ith N O R T H W E S T B A N C O R P O R A T IO N N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y i9b5 C a s h ie r C a s h ie r C a s h ie r C a s h ie r Pay 45% Dividend A 45 per cent dividend, am ounting to $44,106, has been paid to depositors of the closed Citizens Bank, Minot, L. R. Baird, Bism arck, receiver of closed banks, announced. W ith a 5 per cent dividend paid No vem ber 29, 1941, th is brings to 50 p er cent th e am ount of deposits rep aid to M inoters and o thers w ho had funds in th e Citizens B ank w hen it closed its doors in July, 1931. Mr. B aird expressed belief th a t th ere is probably enough on h an d to enable th e receivership to pay off th e re m a in ing 50 p er cent. Hold Reserve Meeting B ankers of cen tral and w estern N orth D akota attended a day-long con ference in B ism arck conducted by re p resen tativ es of th e F ed eral R eserve B ank of M inneapolis. The m eeting opened w ith F ra n k lin P arsons, ag ricu ltu ral econom ist for the bank, speaking on th e farm outlook. Paul M cCracken, w rite r on economics, discussed p ast and fu tu re tre n d s in b ank deposits. Speaker at th e noon luncheon in th e P atterso n H otel w as A rth u r U pgren, vice p resident and econom ist for th e bank, w ho spoke on th e relatio n sh ip of N orth D akota to business and in te r national economy. Oliver Powell, first vice presid en t of the M inneapolis Bank, talked on “N orth D akota Banks, T heir E arn in g s and A ssets,” and some phases of th e national m oney m arket. The conference held at B ism arck and an o th er a t F argo th e following day w ere exceptionally well attended, th e re being 102 at B ism arck and 106 at Fargo. The bankers, directors and b u siness m en w ere guests at lunch of th e F ed eral R eserve Bank. T he N orth D akota B ankers Associa tion is indebted to th e presid en t and staff of th e F ed eral R eserve B ank of M inneapolis for m aking these v ery in terestin g program s available to th e ban k ers in N orth Dakota. Group Insurance T he N orth D akota B ankers A ssocia tion w as advised last m onth by th e Occidental Life In su ran ce Company, O U R 5 0 th Y E A R 55 * NORTH carry in g th e group in su ran ce for N orth D akota banks, th a t m em bership in th is policy w as re stric te d a fte r J a n u a ry 1, 1945, and th a t th e em ployes of any b an k w ho seek m em bership a fte r th a t tim e w ould only be ad m itted after m edical exam ination. To Federal Loan Bank Lloyd A. R ulien, se cretary of th e G rand F o rk s B uilding and L oan Asso ciation, h as been elected a directo r of th e F e d e ra l H om e L oan B ank of Des Moines, Iow a, for a te rm of tw o years, beg in n in g J a n u a ry 1st. H e succeeds H a rry T hom pson, p resid en t of th e Gate C ity B uilding and L oan Associa tion of Fargo. T he bank, w ith assets of m ore th a n $21,000,000, serves th e eighth d istric t com prising th e states of Iowa, M inne sota, M issouri and N o rth and South D akota, in w hich th e re are 241 m em b er building, savings and loan asso ciations. DAKOTA NEWS finally put them to work back up there. Nazis also control the light plants in this burg b u t t h a t ’s not our choice. I f they knew we used their radios to listen to New York news to find out w hat goes on up a t the other end of the city they would probably cut off our power. Some fun, heh? “ D id n ’t tell you about my close one. I was leaning against a building (hugging it, I think correspondents call it) and a German anti-tank shell h it the other side of the building and came out ju st over my head * and went m errily on its way leaving me covered w ith bricks. Maybe you think old D ynam ite w asn’t sweating th a t time. “ We also recaptured 70 Americans the K rau ts were holding here. Poor boys h a d n ’t eaten except K ra u t hardtack for 5 days as it seems our P -4 7 ’s upset the K ra u t supply system. ’ ’ L t . N orman M ill er , C o. D 318th Inf. APO 79, New Y ork. An easy way to build good will H ere is what a banker accomplishes these days by selling American Express Travelers Cheques: £5 DEAR EDITOR HE SATISFIES a need felt by far more o f his customers than ever before —what w ith the unprecedented rush o f wartime travel. (C ontinued from page 11) a t once all hell broke loose and every G. I. and every tanker fired weapons from pistols to 75 m m ’s in the windows. About 20 K rau ts were in there and one waved a white flag. We ceased firing and motioned for them to come out. As the th ird one walked out w ith his hands up the French cut them all down w ith machine guns. “ One place a French tank (lend-lease) caught fire and a crew member climbed up out of th e tu r re t and held his hands up but a sniper got him. About 20 French soldats ran in the house and brought the sniper out, held him down on the sidewalk and b eat his brains out with the b u tts of their rifles. I love to fight with those birds as they do a good job. “ One night in the rain up in the Vosges mountains the Germans had b u rn t the town and the French had captured three of the K rau ts so they buried them alive in the typical French fro n t yard manure pile. “ Thanksgiving day (F D R ’s) I had the honor of seeing my prediction come true— to be here for turkey. We had the turkey all rig h t in our kitchen but it was on the other side of the m ountains and we were draw ing rations from the French. Today (Sunday) we are having our good old Amer ican turkey—we split the difference with the Democrats! ‘ ‘ Thanksgiving night I was in charge of 400 Nazis so I picked out one cook who spoke good English, as he had cooked in the A stor H otel in New York seven years, and had this bird cook N azi food for us in their barracks. W e took over these barracks which they had le ft only an hour before. We sure had a happy bunch of Americans as they love to paw through N azi supply rooms, etc., for souvenirs. “ We took 400 prisoners (medics) from the largest civilian hospital in Europe and OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HE S U P P L IES Travelers Cheques that have the de served reputation o f being "good as gold” every w h ere-in clu d in g Army and N avy Post Exchanges throughout the world. HE SELLS guaranteed safety for travel funds. And the amount o f those funds, to service men and their visiting wives and parents, is apt to be a consider able part c f everything they have. HE FURNISHES cheques which, if lost or stolen, are easily and quickly refunded. -'idL- FIN ALLY, he provides the complete customer satisfaction that makes firm friends for the future. The sale of American Express Travelers Cheques is backed by news paper and radio advertising. Advertising copy for local sponsorship is available without charge. A folder reproducing these advertise ments will be sent to you upon request, by W. H. Stetser, Vice President, American Express Co., 65 Broadway, New York 6, N. Y. E x p / i& TR A V E LE R S w CHEQUES N o r th w e s te r n B a n k e r J a n u a r y 1945 56 YEARS SOUND RANKING SERVICE _ STATEMENT, DECEMBER 30, 1944 RESOURCES Cash and Due from Banks................................................................................... 120,897,073.35 U. S. Government Obligations................................................. $50,269,772.55 Municipal and Other Bonds..................................................... 2,481,877.51 52,751,650.06 Loans and Discounts..................... Bank Premises ...................................................................................................... Stock in Federal Reserve Bank............................................................................. Other A ssets.......................................................................................................... 7,212,314.60 705,000.00 75,000.00 211,582.93 $81,852,620.94 LIABILITIES Deposits ........................................... .............................. $78,487,718.05 Capital S to ck .................................... Surplus ............................................ Undivided Profits and Reserves. .. Other Liabilities.............................. . .. $1,100,000.00 . . . 1,400,000.00 691,045.52 .............................. 3,191,045.52 173,857.37 $81,852,620.94 ü N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 1945 OUR 50th YEAR 57 In Philippines NEBRASKA NEW S E D G A R M cB R ID E P r e s id e n t B lu e H ill WM. B . H U G H E S S ecr eta ry O m aha Howells Bank Opens Increase of $25,000 T he H ow ells B ank, Howells, N ebras ka, opened its doors for b u siness last m on th a fte r th e co m m unity had been w ith o u t b an k in g facilities since th e H ow ells S tate B ank closed its accounts and w en t out of b u siness six m onths ago. T he n ew b an k opens w ith J. A. N ovak as p re sid e n t an d cashier, and F ra n k T illm ann, vice president. The board of d irecto rs include F ra n k Konsel, Josef D rah o ta and E m il Sobota. F o r th e p re se n t Mr. N ovak has th e assistance of M argaret F iala and E d w ard H oncik in serv in g th e public. An increase of th e capital stock of th e F irs t N ational B ank of McCook, N ebraska, from $75,000 to $100,000 w as approved last m onth. A fter th is in crease w as set up on th e books th e capital is now show n as $100,000, su r plus $55,000, undivided profits $50,000, and reserves $62,000. T his b an k w as ch artered in 1885 and in A ugust w ill be 60 y ears old. Valentine Banker Dies M ilton V alentine Nicholson, 85, p re s iden t of th e F irs t N ational B ank of V alentine, N ebraska, and first m ayor of V alentine, died th e re last m o n th a t his home. Mr. N icholson joined th e b an k in 1886 and h ad been active in its affairs u n til five y ears ago w h en he w as in capacitated because of illness. He had served as a m em ber of th e tow n board w hile V alentine w as a village. H e w as a m em ber of the N ebraska S tate B an k ers A ssociation’s 50-year club and served on th e V alentine school b oard for 23 years. Draw Up Articles A rticles of incorporation have been d raw n up for a com m ercial b an k to be know n as th e P latte C enter Bank, P la tte Center, N ebraska. The authorized capital stock of this co rporation is $50,000. T his corpora tio n w as to begin business on th e 2nd of th is m onth or as soon th e re a fter as authorized by th e D ep artm ent of B anking of th e State of N ebraska. Former Winslow Banker Dies H en ry P. W eitkam p died a t his hom e in Om aha last m onth. He w as a re tire d h ard w are dealer of W inslow , Ne b raska, w here he lived u n til 1936 w hen he cam e to Omaha. H e w as one of th e organizers and form er presid en t of th e W inslow S tate Bank. S hirley J. N orton, earlier connected w ith th e Y ork FSA office, and later associated w ith York S tate Bank, York, N ebraska, as a ssistan t cashier, relates an in terestin g sto ry of his p articip atio n in the reoccupation of th e P h ilippines by M acA rthur and his men. P riv ate N orton is not strictly a com bat soldier b u t as a signal corpsm an in th e 24th Division he w as in the th ick of th e fighting in th e invasion of L eyte Island. He said in part, “F o r th e m ost p a rt our w ork w as in an exposed position on th e ground or up in a tree. W e w ere unable to dig foxholes because w e m oved about so much. “A fter th e first few days w e encoun tered little of th e red h ot stuff, b u t snipers w ere w ith us all th e w ay across th e island.” New County Group Officers The ann u al m eeting of th e Saunders County B ankers A ssociation w as held in W ahoo, N ebraska, last m onth and th e association elected th e follow ing officers: 19 W. A. H arn sb erg er of A shland, p resi dent; J. F. P eters of Y utan, vice p resi dent; C. G. Hohl, secretary-treasurer.. The executive com m ittee includes E l m er H enderson of Cedar Bluffs an d R. E. Novak of V alparaiso. Pay Eighth Dividend D ividend No. 8 to depositors in th e form er A m erican State Bank, York, N ebraska, is announced by C. H. R oll ing, tru stee. T he dividend m akes a total of 73 per cent paid to depositors w ith likelihood th a t rem aining assets w ill yield more. R E P O R T O F C O N D IT IO N Director of Banking (See cover photo) On D ecem ber 11, 1944, G overnor D w ight G risw old of N ebraska, a p pointed J. F. “F re d ” P e te rs state d irecto r of banking. Mr. P eters is m a rrie d and has tw o children, a d au g h ter in Chicago and a son in high school. He w as b o rn in H ow ard county, N ebraska, g rad u ated from th e F re m o n t h igh school and th e U n iv ersity of N eb rask a College of L aw in 1922. He has had tw e n ty y ears of b an k in g experience, m ost of th e tim e as cash ier of th e B ank of Y utan. O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE H A S T IN G S NATIONAL BANK HASTINGS, NEBRASKA D E C E M B E R 30, 1944 RESOU RCES L o a n s a n d D is c o u n ts ...................................................................................................................................................$ 8 5 5 , 8 1 5 .7 5 O v e rd ra fts ................................................................................................................................................................ 2 1 7 .8 1 S to c k In F e d e ra l R eserve B a n k ............................................................................................................................... 7 , 5 0 0 .0 0 B a n k B u ild in g ................................. 1 5 , 0 0 0 .0 0 I n te r e s t E a r n e d b u t N o t C o lle c te d ............................................................................... ............................... 2 6 , 0 6 0 .0 3 U n ite d S ta te s G o v e rn m e n t B o n d s ............................................... .. .............................8 6 , 2 9 4 ,6 9 8 . 1 6 M u n ic ip a l B o n d s a n d W a r r a n t s ...................................................................................... 1 3 5 , 8 5 3 .4 5 O th e r B o n d s ......................................................................................................................... 7 5 ,0 9 7 .5 4 C ash a n d S ig h t E x c h a n g e .............................................................................................. 2 ,2 5 7 ,7 1 6 .3 4 8 , 7 6 3 ,3 6 5 . 4 9 $ 9 , 6 6 7 ,9 5 9 . 0 8 L IA B IL IT IE S C a p ita l A c c o u n t C om m on S t o c k ...................................................................................................................................................? 1 2 5 , 0 0 0 .0 0 S u rp lu s .................................... ...................... ................................................................... .. . 1 2 5 , 0 0 0 .0 0 U n d iv id ed P ro fits a n d R e s e rv e s ........................................................... ....................................................... 1 2 2 , 3 1 7 .8 6 D e p o sits ...................................... .................................................. ............................................................................. 9 , 2 9 5 ,6 4 1 . 2 2 $ 9 , 6 6 7 ,9 5 9 . 0 8 H. G. P R A T T , P resident O F F IC E R S A ND D IR E C T O R S O. A. R IL E Y , Vice P resid en t CHAS. E . D E E T S , Cashier J. LEO S W IG L E , A ssistant C ashier J O S E P H B A U E R , A ssistant Cashier L. J. M cCUNE, A ssistant Cashier H A Z E L H O R N , A ssistant Cashier C. E. B Y ER S S T E P H E N S W IG L E R, R . VANCE Member F ederal D eposit Insurance Corporation N o r th w e s te r n B a n k e r J a n u a r y 19J5 58 • NEBRASKA N E WS R eserve System . State banks, how ever, are governed u n d er th e state ban k ing d ep artm en t b u t m ay join the F ed eral R eserve System by m eeting th e qualifications. State Bank Joins FRS The Gordon S tate B ank, Gordon, Ne braska, becam e a m em ber of th e F e d eral R eserve System recently. All n a tional b anks are a p a rt of th e F ed eral Condensed Statement of Condition First N ation al Bank of Saint Joseph, Missouri Reorganize Bank In a reorganization recently of th e B ank of Paxton, Paxton, N ebraska, H u b ert L. K ildare w as elected p resi dent and Mrs. F red a H. E ginton, vice president, an announcem ent from th e bank stated. J. F. F leak w ill continue as cashier, w ith Mrs. D orothy Rudd, a ssistan t cashier and B etty A nn Eginton, book keeper. Mrs. E ginton succeeds h er late h u s band, Pete E ginton, as a director in th e bank. New Assistant Cashier and affiliated A nnouncem ent is m ade th a t Lyle F. Stonem an has been elected a ssistan t cashier of the F irst N ational Bank. L in coln, N ebraska. Mr. Stonem an graduated from the F irst T ru st C om pany and First St. J o sep h S tock Y ards Bank of South Saint Joseph, Missouri at the close of business December 30, 1944 RESO URCES F i r s t N a ti o n a l B ank C a s h a n d S ig h t E x c h a n g e .............................................. .$11,913,917.01 U. S. G o v e rn m e n t O b lig a tio n s , D ir e c t a n d F u l l y G u a r a n t e e d ___ » .................................................... 13,327,472.54 O th e r B o n d s a n d S e c u r i t i e s ............................................ 1,865,420.39 C a p i ta l S to c k in F e d e r a l R e s e r v e B a n k ................ 25,650.00 L o a n s a n d D i s c o u n t s ............................................................. 3,622,386.44 B a n k B u ild in g , R e a l E s t a t e a n d O th e r R e s o u r c e s 115,912.25 T o t a l ....................................................................................$30,870,758.63 L IA B IL IT IE S C a p ita l ...........................................................................................$ 500,000.00 S u r p lu s a n d U n d iv id e d P r o f i t s ...................................... 568,079.62 R e s e r v e s .............................................................................. 37,342.41 D e p o s its ...................................................................................... 29,765,336.60 T o ta l $30,870,758.63 C om b in ed D e p o sits - F irs t T ru s t F i r s t S t. J o s e p h C om pany S to c k Y a r d s B a n k $ 90,746.06 $ 4,288,987.62 193,312.33 5,025,619.80 614.378.15 250.46 760.168.16 34,071.68 $284,308,85 $10,733,225.41 $100,000.00 $ 184,308.85 T r u s t B u s in e s s O n ly $284,308.85 10,000.00 250,000.00 150,531.81 16,566.19 10,316,127.41 $10,733,225.41 $ 4 0 ,0 8 1 ,4 6 4 .0 1 M e m b e rs o f 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 NATIONAL BANK OF COMMERCE L Y L E F. S T O N E M A N N e w A s s is ta n t C a s h ie r OF LINCOLN. NEBRASKA Statement of Condition. December 30. 1944 RESOU RCES L IA B IL IT IE S L o a n s a n d D is c o u n ts ...........................$ 1 , 3 8 3 ,3 7 5 . 3 1 O v e r d r a f t s ................................................ 7 5 .2 1 B a n k in g H ouse .................................... 1 4 5 , 0 0 0 .0 0 U . S. B o n d s ............................................. 2 2 , 0 0 0 ,0 0 0 . 0 0 W a r S avings S t a m p s ........................... 1 ,5 0 0 .0 0 C u sto m e rs L ia b ility fo r L e tte r of C r e d i t ............................................. 1 4 , 1 8 0 .0 0 S tock F e d e ra l R eserve B an k . . . . 3 0 , 0 0 0 .0 0 C ash a n d S ig h t E x c h a n g e ............... 1 0 , 7 7 4 ,6 4 9 . 2 9 C a p ita l .............. .$ 5 0 0 ,0 0 0 .0 0 S u r p l u s ......................... $ 5 0 0 , 0 0 0 .0 0 R eserves ..................... 5 0 0 , 0 0 0 .0 0 U n d iv id ed P r o f i t s . . 7 5 , 6 5 4 .9 7 R eserve fo r D iv id e n d s ....................... L e tte r s o f C r e d it .................... D ep o sits ................................ W a r L oan D e p o s its .............................. $ 3 4 ,3 4 8 .7 7 9 . 8 1 $ 1 , 5 7 5 ,6 5 4 . 9 7 2 7 , 0 0 0 .0 0 1 4 , 1 8 0 .0 0 2 9 , 4 0 1 ,8 8 8 . 9 0 3 , 3 3 0 ,0 5 5 . 9 4 $ 3 4 , 3 4 8 .7 7 9 . 8 1 M. W E IL , P resid en t G LEN N Y A U SSI, A ssistant Vice P resid en t and A ssistan t T ru st Officer BY RON D UN N , Executive Vice P resid en t and T ru st Officer A L B E R T A. H E L D , Vice P resident E R N E S T C. FO LSO M , Vice P resident JU L IU S W E IL , Vice P resident P A U L BO GO TT, Cashier R. E. M IL L E R , A ssistan t Cashier and A ssistan t T ru st Officer Member of th e F ederal D eposit Insurance C orporation N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y i9b5 U niversity of N ebraska in 1935, and w as w ith the F irs t N ational u n til F eb ru ary , 1941. At th a t tim e he joined exam ining forces of th e F ederal De posit In su ran ce C orporation and has recen tly m aintained his h ead q u arters in N orth P latte. He re tu rn e d to th e F irs t N ational in Lincoln in Novem ber, 1944, and w ill devote a m ajor portion of his tim e to th e business of co rre spondent banks. YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. OM AHA OUR 50th YEAR 59 operate his w alkie-talkie, etc. I t’s a p re tty hot spot I ’ve got, b u t I like it.” F rom Sgt. C harles C. Schneider, form er em ploye of the Omaha N a tional Bank, came this le tte r from Belgium to his bro th er, W. T. Schnei der, of Greenfield, Iowa: “I am fine as far as health is con cerned, b ut like so m any m illion o th er boys, I am ready to go home. I ’m not fooling m yself, though. I know th a t tim e w on’t come u n til those K rau ts pull dow n th e sw astika and some GI Joe ru n s up th e colors. Yes, I have been in G erm any.” FO RM A TIO N of th e Om aha FoundaI tion, Inc., to ad m in ister charitab le gifts and bequests so th e in te n t of th e donor w ill be carried out as needs change a fte r his death, has been a n nounced in Omaha. I t is th e first such o rganization in Omaha, although 79 o th er cities have sim ilar foundations. Its p resid en t is Dan M onen of th e Om aha N ational Bank. The O m aha F o u n d atio n w ill operate w ith a board of directors of 21 m em bers. Seven w ill be ex-officio, includ ing the p resid en t of th e O m aha C lear ing H ouse A ssociation. Mrs. P au l G allagher is vice p resi dent, C asper Yost Offutt, tre a su re r, and W illiam A. Sohl, secretary. B oard m em bers include M ayor Dan B utler, Thom as L. D avis, p resid en t of the F irs t N ational B ank of Omaha, and D ale Clark, p resid en t of th e Omaha N ational Bank. “The new group w ill nev er actively solicit funds or conduct a m oney raisin g cam paign,” Mr. M onen said. “Its purpose is to be available to p e r sons w ho w ish to p erp etu ate th e ir gifts.” f O U R 50th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Pfc. H ow ard M. Johnson, son of Mr. and Mrs. A lv in E. Johnson, recently w rote his p aren ts as follows, after the P hilippine invasion: “H ere I am still in the hospital area and I never felt b e tte r in m y life. T hese few days of re st have done w onders for me. It is so easy to get infection in this clim ate, so th ey don’t release you u n til th ey are sure. I have enough sulfa in me now. If we stopped for rain here, w e’d never get any place. I have gone for th ree days w ith o u t ever being dry. These are th e th in g s w e’ll laugh about w hen th is is over. T here is little beefing a t the front. “I ju st got a little sh rapnel in my arm s and side and it doesn’t even h u rt m uch. I m u st adm it I w as aw fully lucky. A couple of fellows w ere killed o u trig h t and o thers badly w ounded. I helped carry them back to the aid statio n across a chest-deep sw am p, w ith enem y m achine guns rak in g th e field. W ell, I got m y P u rp le H e a rt th e easy way. “I am th e com pany com m ander’s bodyguard and right-hand m an, and D ale Clark, p resident of the Omaha N ational B ank and form er p resident of th e Board of R egents of th e M unici pal U niversity of Omaha, w as honored at a su rp rise luncheon at the Fontenelle H otel in Omaha for his services to the U niversity. P resen t and p ast m em bers of the Board of R egents w ere hosts. A. D. M ajors, p resid en t of th e board, introduced H a rry Jacobberger, w ho recounted Mr. C lark’s record as a regent. T he Silver B eaver aw ard, h ighest given in th e Covered W agon Area Council of Boy Scouts, w as presented by D ale Clark, m em ber of th e advisory board, to Ralph E. W alter, C onrad H. Schoessler, and J. D. Crawford, a t th e an n u al d in n er of th e council. Mr. Clark w as renam ed to th e advisory com m ittee. R obert H all w as nam ed to the area council as a m em ber-at-large, as w ere S. R. K irkpatrick, inv estm en t banker; Janies H. Moore, E d w in V an H orne, and D ean V ogel. Em ployes of th e Live Stock N ational B ank of Omaha attended th e ir ann u al C hristm as p a rty and d in n er a t th e F ontenelle H otel D ecem ber 12th. A lvin E. Johnson is presid en t of th e bank, w hich is celebrating its thirtyseventh anniversary. irst National Bank of Omaha Oldest National Bank From Omaha West M em ber F e d e ra l D ep o sit In s u r a n c e C o rp o ra tio n N o r th w e s te r n B a n k e r J a n u a r y 19^5 60 • NEBRASKA Edw ard W . L ym an, a ssista n t cashier of th e U nited States N ational B ank of Omaha, has p u rch ased th e H appy H ollow residence of A rth u r A. Lowm an, fo rm er p resid en t of th e N o rth w este rn Bell T elephone Com pany, a t 5204 B u rt Street. P rice w as $16,000. Pvt. E rn e s t C. Coad, son of th e late J. F ran k Coad, fo rm er p resid en t of th e P ack ers N ational B ank of South Om aha, w as rep o rted m issing in action since N ovem ber 22nd in G erm any. H is sister, Mrs. C. A. Jeffrey of Omaha, re ceived th e w ord recently. H is wife, th e form er E lizab eth T inley of Council Bluffs, and th e ir th re e d au g h ters are in B erkeley, California. P riv a te Coad atten d ed C reighton P rep and C reigh to n U niversity. H e en tered th e A rm y last F e b ru a ry and has been overseas since Septem ber. Team captains in th e drive for funds for a M em orial P a rk in O m aha to hon o r W orld W ar II v eteran s include D avid F. D avis, Om aha N ational Bank; R obert H. H all, N o rth Side Bank; Man n in g E. Handler, in v estm en t banker; D enm an K ountze, fo rm er banker; C larence L. Landen, L eslie E. M artin, E . F. P ettis, fo rm er banker; J. C. R ahel, in v estm en t banker; W. A. Sawtell„ Stock Y ards N ational B ank, and H. W. Yates. C learing H ouse B anks of Om aha gave $10,000 and the Live Stock N a tional Bank, in addition, w as listed as a $1,250 con trib u to r. The B yron Reed Com pany donated $2,000, th e S ecuri N E WS • ties A cceptance C orporation $500, and th e N ational Com pany of Omaha, $500. T. Sgt. Jack Lang, son of Mr. and Mrs. H arold L ang of Omaha and a fo rm er em ploye of th e Live Stock N a tio n al B ank before en terin g th e Air Corps in Septem ber, 1941, has been listed as dead afte r being rep o rted m issing in action a y e a r ago. He served as a radio operator and pho tographer. He held th e DFC and th e A ir Medal w ith Oak L eaf Cluster. M em orial services w ere held a t St. B rid g et’s Church. A b ro th er, Sergeant Jam es, is w ith the A AF in France. Mrs. H en ry A. H ovey, w ife of th e p resid en t of th e B roadw ay N ational B ank of San A ntonio, Texas, died De cem ber 13th. H er h u sband is form er p resid en t of th e South Omaha Savings B ank and th e son of Ford E. H ovey, p resid en t of th e Occidental B uilding and Loan A ssociation of Omaha. The H oveys m oved south th ree y ears ago because of Mrs. H ovey’s h ealth. She w as th e form er E velyn Oldham Lowe, d au g h ter of Bishop and Mrs. T itus Lowe of Indianapolis, for m erly of Omaha. She w as born in Calcutta, India, in 1902. She w as a m em ber of Pi B eta Phi Sorority. T he H oveys have tw o chil dren, Constance and Ford, 2nd. Two form er b an k m essengers played th e leading roles in a cerem ony a t th e a n n u al C hristm as p a rty of th e Live Stock N ational B ank of Omaha. R. H. K roeger, vice presid en t of th e bank L ooking A h ead Good correspondent service, to be lasting, must look ahead at tomorrow's problems. Here you will find such cooperation, based on long-range planning. We invite your account in Lincoln. ( O N T I N E N T A L |S | a T IO N A L B a Hk °,f LINCOLN for 10 years, received a plaque, for 30 years of service, from A lv in E. J oh n son, president. Both sta rte d as m es sengers. Omaha should erect a m em orial on Omaha Beach on th e N orm andy in vasion coast, according to Col. J. F ran cis M cD erm ott, chief of th e W a r Bond and In su ran ce B ranch, S eventh Service Command, and on leave from his duties as vice presid en t of th e F irs t N ational B ank of Omaha. “The deeds perform ed th ere w ill live for ever,” he told th e D undee K iw anis Club in a luncheon speech. Colonel M cD erm ott said th a t w hen he w as en terin g New Y ork h a rb o r recently, after a m ission to F ran ce and E ngland, he h eard a w ounded soldier ask to have his cot raised so he could see the S tatue of L iberty. T hen th e m an said: “Hi ya, Old Lady, I ’m certain ly glad to be hom e.” O. P. Cordill, cashier of the Omaha B ranch of th e F ed eral R eserve B ank of K ansas City, has been nam ed vice p resid en t of the p aren t bank, it w as announced recently by P resid en t H. G. Leedy. Mr. Cordill becomes chief officer of th e O klahom a City, Okla hom a, B ranch. H e has been on th e staff of th e Om aha Federal R eserve B ank B ranch since 1920 and cash ier since 1942. He left for O klahom a City recently. H. W. P ierpont, w ho re tire d Decem b er 1st as presid en t of th e S tandard Oil Com pany of N ebraska, a t th e sam e tim e th a t S tandard of N ebraska w as purchased by S tandard of In d i ana, is a director and m em ber of th e E xecutive Com m ittee of th e U nited States N ational B ank of Omaha. A. C uthbert “Cub” P otter, form er Omaha in v estm en t banker, now of New Y ork City, arriv ed recen tly to m ake a b rief visit in his form er home. A lv in E. Johnson and Dale Clark, both p ast p residents of the Om aha Y. M. C. A., w ere am ong those honored a t th e Y’s C entennial D inner recently, w hen Grove P atterso n of Toledo, Ohio, editor of th e Todelo Blade, w as p rin ci pal speaker. Am ong o th er speakers w as Charles W . Mead of Omaha. BANKS Bought and Sold Confidentially and with becoming dignity BANK E M P L O Y E E S P LA C E D . M em ber F e d e ra l D eposit In su ra n c e C orporation 39 Y e a rs S a t is f a c t o r y S e r v ic e THE CHARLES E. WALTERS CO. OM AHA, N EB R A SK A N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 19^5 O U R 5 0 th Y E A R 61 New Cashier at Scotia B enjam in C. B ilhorn of Crete, Ne b raska, joined th e S tate B ank of Scotia as cashier last m onth. Mr. B ilhorn operated his b ank at K ra m er, N ebraska, u n til recently. Former Banker Dies A. J. L anger, form erly associated w ith th e F irs t N ational Bank, H um phrey, N ebraska, passed aw ay a t his hom e in Long Beach, California, re cently. Buys Bank Building The City N ational Bank, H astings, N ebraska, is now th e ow ner-occupant A SIL O’Connor, p resid en t of th e N ational F o u n d atio n for In fan tile P aralysis, h as an nounced th e ap p o in t m en t of T. B. Strain, p resid en t of th e C ontinental N ational B ank of L in coln and h ead of th e U n iv ersity of N ebraska F o undation, as N ebraska ch airm an fo r th e a n n u a l M arch of Dimes driv e to be conducted J a n u a ry 14th-31st. of th e three-story b an k building, h av ing passed from th e te n a n t classifica tion last m onth w ith th e tra n sfe r of title. D irectors of th e b an k now in a hom e of its ow n are: Dr. E. C. Foote, Dr. A. A. Sm ith, L. J. Siekm ann, Floyd A. H ansen and A. J. Koelling. Officers are: Mr. Koelling, president; Mr. H ansen, cashier, and V ern Manahan, C arrie A. Stone and A. L. McDannel, a ssistan t cashiers. In every barroom in th e land, The experts lend a helping h an d A nd exercise th e ir m ental pow er A dvising D w ight D. Eisenhow er. B “T he officers and em ployes of b an k s can and m u st play an active p a rt in the S ixth W a r L oan drive by in stillin g confidence in th e p u rch asers of bonds and b reak in g dow n sales re sistance, for th e y have th e closest contact w ith th e financial affairs of th e public,” Leon J. M arkham , execu tive m an ag er of th e N ebraska W ar F in an ce Com m ittee, declared in a r e cent ad dress to th e L incoln C hapter of th e A m erican In stitu te of B anking and g uests from local in v estm en t com panies. OVER SEVENTY-THREE YEARS OF BANKING EXPERIENCE Statement of Condition The First National Bank of Lincoln LINCOLN, NEBRASKA (O rg an iz ed 1871) AT THE CLOSE OF BUSINESS DECEMBER 30. 1944 ASSETS Cash and Due from Banks......................................... $13,969.469.35 U. S. Government Bonds............................................. 34,322,867.33 Other Bonds and Securities......................................... 495,298.75 Federal Reserve Bank Stock....................................... 66,450.00 Loans ............................................................................. 2,946,803.85 Interest Earned Not Due............................................. 132,389.03 Banking H ou se............................................................. 381,401.37 Total Assets...........................................................$52,314,679.68 A u n iq u e and in te re stin g exhibition of p ictu res of service m en and w om en w hose hom es are in U n iv ersity Place are on exhib itio n in th e w indow s of th e C itizens State Bank. J u s t below each p ictu re is th e nam e and oth er data as to ran k , service un it, etc. Up to date th e re are app ro x im ately 200 pictu res on display. Geo. K n igh t, w ho plan n ed th e exhibit, in v ited those p e r sons w hose sons and d au g h ters are in th e service to b rin g or send in th e ir p ictu res and th e response has been v ery gratifying. LIABILITIES Capital Stock..................................... $1,500,000.00 Surplus ............................................... 715,000.00 Undivided Profits ............................. 407,153.82 Reserves ....................................................................... 203,376.96 Discount Unearned ..................................................... 9,943.46 Deposits ......................................................................... 49,479,205.44 Total Liabilities.....................................................$52,314,679.68 — OFFICERS— P. R. E A S T E R D A Y ........................C h a i r m a n G EO R G E W . HOLM ES . . . P r e s id e n t Sixty Years of Banking R obert C. Boyd, p resid en t of th e Carson N ational B ank of A uburn, N ebras ka, has ju s t celebrated his six tieth y e a r in th e b an k in g business. The b an k w as sta rte d m any y ears ago by Jo h n L. Carson, w ho first operated at B row nville and later w as a re sid e n t of Lincoln. Mr. Boyd is also head of th e F ir s t N ational B ank of Johnson. O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $2,622,153.82 H O W A R D FR EEM A N , L. C. C H A P IN . . STANLEY M ALY . B. O . CAMPBELL . E. U. GUENZEL . . E x e c. . . . . . . . . V ic e V ice .V ice V ic e V ic e P r e s id e n t P r e s id e n t P r e s id e n t P r e s id e n t P r e s id e n t ‘ C A PT A IN A . C. G LANDT . . C a s h ie r CLIFFO R D G . W E ST O N , A ss t. V. P r e s id e n t R. J. BECKER . . . A ss t. V. P r e s id e n t G . H . C R A N E ........................A ss t. C a s h ie r LYLE F. STO N EM A N . . A ss t. C a s h ie r ‘ O n l e a v e — in M ilita r y S e rv ic e . M em b er of th e F e d e r a l D e p o sit In su ra n ce C orp oration N o r th w e s te r n B a n k e r J a n u a r y 1945 62 The Live Stock extends NationalBank Greetingsand Best for the New Year allo f itfriends to S tatem en t of C o n d itio n . D ecem ber 30. 1944 RESOURCES LIABILITIES L oans a n d D iscounts.................................................$ 9,843,785.06 C a p ita l Stock (Common)............................................ $.... 500,000.00 Bonds a n d O ther S ecu ritie s..................................... 163,368.90 S urplus (Earned) .......................................................... 1,000,000.00 Stock in F e d e ra l R eserv e B a n k ............................... 45,000.00 U n d iv id ed Profits ........................................................ 303,102.33 B anking H o use a n d F ix tu res................................... 1.00 R e serv ed for T ax es, In terest, e tc............................. 207,321.28 O th er R eal E sta te .............................................................................N one U n e a rn e d D iscount ...................................................... 2,242.71 In terest A ccru ed on G overnm ent S ecurities, e tc .................................................................................... D ividends P a y a b le J a n u a ry 2, 1945......................... 7,500.00 175,984.03 D eposits .......................................................................... 56,827,127.44 U. S. G o v ern m en t S ecurities $29,523,038.41 C a sh and Sight E xchange.... 19,096,116.36 48,619,154.77 $58,847,293.76 $58,847,293.76 ☆ OFFICERS AND DIRECTORS Alvin E. Johnson, P re sid e n t Henry C. Karpf R. H. Kroeger Paul Hansen V ice P re sid e n t V ice P re sid e n t V ice P re sid e n t a n d C a sh ie r W. Dean Vogel Wade R. Martin H. H. Echtermeyer V ice P re sid e n t Vice P re sid e n t Vice P re sid e n t L. V. Pulliam C. G. Pearson Earl R. Cherry A sst. C a sh ie r A sst. C a sh ie r A sst. C a sh ie r W. P. Adkins H. B. Bergguist L. S. Burk Jas. J. Fitzgerald O m aha C oal a n d G rain C h icag o P rè s. C om m ercial S av. & L oan A ssn. John R. Jirdon Leo T. Murphy James L. Paxton, Jr. Herman K. Schafer Live Stock a n d G rain M orrill, N e b ra s k a M gr. A llied Mills, Inc. P res. P axton-M itchell Co. P rès. M a n e y M illing Co. Carl A. Swanson J. L. Welsh P res. Je rp e Com. & C old S to ra g e Co. B utler-W elsh G ra in Co. LIVE STO CK N A TIO N A L BANK O M A H A M em ber F e d e ra l D ep o sit In su ra n c e C o r p o r a t io n N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 1945 O U R 50th Y E A R 63 NEWS FRANK W ARNER S ecr eta ry D es M oines R. R. B R U B A C H E R P r e s id e n t S io u x C ity Open Office at Bedford T he S tate Savings B ank of Sharpsburg, Iowa, w as to open an office in th e Lew is B uilding, Bedford, Iowa, about th e first of th e year, w ith Clif ford Young of S h arp sb u rg in charge. H. S. Beck w ill be in charge of th e bank at Sharpsburg. Renew Charters T he state d ep artm en t of b an k in g re po rted th a t it renew ed th e c h a rte rs of 11 sta te b an k s and g ran ted a new c h a r te r to a tw elfth b an k d u rin g th e y ear ended last Ju n e 30th. T his w as revealed in th e an n u al re p o rt of M elvin W. Ellis, su p e rin te n d e n t of banking, to G overnor B. B. Hickenlooper. The new c h a rte r w ent to th e E v erly S tate B ank, E verly, w hich had capital of $32,500 and $8,125 in su rp lu s and profits. R enew al c h a rte rs w ere issued to th e C larence Savings Bank, Clarence; E m erso n State B ank, E m erson; F a rm ers S tate B ank, Jessup; th e State Cen tra l Savings B ank, K eokuk; F arm e rs Savings B ank, Keota; F arm e rs State B ank, M errill; F irs t T ru st and Savings B ank, R em sen; F a rm e rs L oan and T ru st Com pany, Sioux City; T rey n o r S tate B ank, T reynor; W aln u t State B ank, W aln u t, and W est Side State Savings Bank, W est Side. Six b an k s w ere g ran ted fiduciary pow ers—Com m ercial State B ank, Afton; College Savings Bank, Ames; B uf falo Savings B ank, Buffalo; E v erly S tate B ank, E verly; H um boldt T ru st and Savings Bank, H um boldt, F a rm e rs State Bank, M errill. and m arks is considered, “I have never judged a fat stock show w ith so m any anim als in it, and I have nev er seen such large classes w here the q u ality of th e anim als w as so uniform ly excellent —not good, b u t excellent—from top to bottom .” “T eddy” w as sold at 1,170 pounds to th e F iresto n e T ire and R ubber Com pany, A kron, Ohio, for $5,265, at $4.50 a pound. E arly in Ja n u a ry “Teddy” w ill go on to u r in a special plastic-sided display truck, to v isit experim ent stations, farm ers’ w eeks, and farm y o uth organi zation g atherings in connection w ith th e F iresto n e farm y o uth activity p ro gram . F iresto n e T ire and R ubber Resigns as Assistant Cashier M. C atharine Downey, a ssistan t cash ier of the Citizens State Bank, Donnellson, Iowa, for th e p ast nine years, has ten d ered h er resignation w ith th a t in stitution, effective last m onth, to join th e FB I. M ary E llen Driscoll w ill assum e some of h er duties and H elen P aisley has now joined the b a n k ’s staff as teller and bookkeeper to help fill th e vacancy. Champion From Clinton County C ham pionships are not a novelty to Clinton county, Iowa, cattle feeders— w idely acknow ledged as consistent p ro ducers of th e finest finished beef in th e country. N evertheless, th ere is al w ays a special th rill in a grand cham pion individual of ou tstan d in g quality, th e honor w on by H ereford “Teddy” and his feeder and exhibitor, Ben A. Greve, 17-year-old of B ryant, Clinton county, Iowa, at th e recen t Chicago M arket F a t Stock Show. G rand cham pion in both th e Ju n io r B reeding Class es and th e Open Class, able Judge Jo h n B urns of Texas said, “. . . if ever th ere w as a steer th a t typified th e statem en t ‘good beef,’ th a t w as th e steer. He has astonishing thickness, a perfect touch, and w as finished to perfection.” T his w as quite a trib u te to B enny’s feeding and m anagem ent practices, w h en an o th er of Judge B u rn s’ r e Ben A. Greve and Champion “ T ed d y ” Com pany devotes considerable tim e and expense to this activity, and “Teddy” is th e fo u rth g rand cham pion steer bought and exhibited by them as a p a rt of th is program . A Postwar Program T he postw ar program of th e Citizens F irst N ational Bank, Storm Lake, Iowa, according to George J. Schaller, chairm an of th e board, has as its first objective “th a t bank credit shall be available to every com petent person needing it for a constructive purpose.” Its second objective is to plan w ith the farm ers and businessm en to m eet th e read ju stm en ts th a t w ill be necessary d u rin g th e com ing reconversion period. S carborough ^ C ompany * ¿  t U First National Bank Building, Chicago O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ÏO M C t y Horace A. Smith, Iowa Representative Des Moines, Iowa N o r th w e s te r n B a n k e r J a n u a r y 1945 64 G ift to Drake E ig h t Des Moines, Iowa, b anks have joined in a $100,000 gift to D rake U ni versity, it w as announced recently. The gift w as n o t designated for an y specific purpose, b u t w as for use in th e u n iv e rsity ’s p re se n t p ro g ram to raise funds to enlarge th e cam pus, add six new buildings, m odernize old stru c tu re s and in crease th e endow m ent, P resid e n t H en ry G. H arm o n of th e u n i v e rsity said. T he gift b ro u g h t to $1,250',000 th e to tal assu red in th e $2,000,000 program . B anks w hich sh ared in th e gift w ere: B ankers T ru st Com pany, C apital City S tate Bank, C entral N ational B ank and T ru st Company, Des Moines B ank and T ru s t Company, F irs t F ed eral State B ank, Iowa-Des Moines N ational B ank and T ru st Com pany, Iow a State B ank and V alley Savings Bank. Named Treasurer Joins Hull Bank L. J. Dehn, form erly county tre a s u re r of Lyon county, Iowa, last m onth becam e assistan t cashier of th e Iow a S tate Bank, H ull, Iowa, replacing E d w ard P ressler. Mr. D ehn w as w ith th e F irs t N ational B ank of Doon, Iowa, be fore going into th e tre a s u re r’s office. CONDENSED STATEMENT OF CONDITION DECEMBER 30, 1944 ASSETS C a sh a n d D ue from B a n k s..............................................................................................................$ 3,686,455.53 L oan s a n d D is c o u n ts ....................................................................................................................... 3,286,767.48 U. S. G o v e rn m en t B o n d s.................................................................................................................. 7,463,372.07 S ta te, C oun ty a n d M u n icip a l B on d s...................................................................................... 231,149.68 O th er B on d s a n d S e c u r itie s................................. 163,558.30 Stock in F e d e r a l R e se r v e B a n k ..................................................................................................... 21,000.00 B ank B u ild in g , Furniture a n d F ix tu r es....................................................................................... 165,000.00 O th er A ss e ts .......................................................................................................................................... 8,577.69 C ustom ers L ia b ility , L etters of C red it..................................................................................... 20,640.00 C. L . F R E D R I C K S E N C arl F r ed rick sen , p re sid e n t o f th e L iv e S to ck N a tio n a l B an k , S io u x C ity , h a s b een n a m ed trea su rer o f th e S io u x C ity I n d u s tr ia l D e v e lo p m e n t C o u n cil. $15,046.520.75 L I A B I L I T IE S Mapleton President Dies C a p ita l ........ $400,000.00 S u rp lu s ........................................................................................................................... 300,000.00 U n d iv id ed Profits ........................................................................................................... 21,379.31 R e se r v e for C o n tin g e n c ie s............................................. 60,000.00 T otal C a p ita l A cco u n t ............................................................................................................... 781,379.31 R e se r v e for T a x e s a n d In te rest..................................................................................................... 44,800.21 O th er L ia b ilitie s ................................................................................................................................... 41.00 Letters of C red it...................................................................................... 20,64o!o0 D e p o sits ................................................................................................................................................... 14,199,660.23 $15,046,520.75 M em b er F e d e r a l R e s e r v e S y ste m M em b er F e d e r a l D ep o sit In su r a n c e C orporation A. G. Sam, President J. P. Hainer, V ice President J. R. Graning, Assistant Cashier Fritz Fritzson, V ice Pres, and Cashier E. A. Johnson, Assistant Cashier J. T. Grant, Assistant Cashier W. F. Cook, Auditor Charles I. W hiting, p resid en t and founder of th e M apleton T ru st and Sav ings Bank, M apleton, Iowa, passed aw ay at his hom e last m onth. On October 3, 1878, th e M apleton bank w as organized, one co rner of a hard w are store being given over to th e business. In 1894 Mr. W h itin g be cam e p resident of th e ban k and served continuously in th a t capacity for fifty years, u n til his death. A Vice President A. H. Hiegel w as voted a prom otion to the position of vice p resid en t of the D avenport B ank and T ru st Company, D avenport, Iowa, at a m eeting of th e board of directors last m onth. Mr. Hiegel w as a m em ber of th e staff w hen th e bank w as organized in 1932 and for the p ast several y ears has held th e posi tion of a ssistan t vice president. Pay 25 Per Cent ★ * * * /ft S/OUX C/ftf * * * N o r th w e s te r n B a n k e r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J a n u a r y 1945 The South O ttum w a Savings Bank, O ttum w a, Iowa, last m onth began a 25 p er cent p aym ent on its tru s t cer tificates, P resid en t C. D. E vans an nounced. T he total outlay w ill be $53,000. T his paym ent w ill b rin g to 75 p er cent th e am ount paid on th e tru s t cer tificates since the b ank w as organized following th e b an k holiday in 1933. OUR 50th YEAR 65 ST A T E M E N T OF C O N D IT IO N • DECEMBER :I0, 1 9 4 4 ' N esources . Loans and Discounts________________________ $ 4,288,164.20 Other Bonds and Stocks________________________ Overdrafts 40,500.00 ________________________27.56 Government Obligations, Direct and Fully Guaranteed__ ' $8,334,385.00 Municipal Bonds_______________ 167,075.00 Cash and Due from Banks______ 1,999,101.27 10,500,561.27 $14,829,253.03 abilities Capital Stock— Common_____________________$ 2 0 0 ,0 0 0 .0 0 Surplus _______________________ ______________ _ 200,000.00 Undivided Profits_____________________________ 71,505.80 R eserv es_____________________________________ 87,663,83 Unearned Discount _________ ____________ _____ _ 14,079.32 Deposits . O FFIC ER S F r e d e r ic k M . M o r r iso n President _________________ _______________ 14,256,004.08 W in f ie l d W . S cott Vice President $14,829,253.03 J. R. A stley Cashier E dw ard P. K a u t zk y Assistant Vice President R oy E . H uber Assistant Vice President F r a n k M . T h o m pso n Assistant Cashier R ay T h o m pso n Assistant Cashier M em ber F ed eral D eposit In su ra n c e C orporation A L L E A Y V 1 N G DES MOINES OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 19J5 66 * IOWA Declare Dividend A sem i-annual dividend of $2 p er share on th e capital stock of th e F irs t T ru st & Savings B ank, D avenport, Iowa, has been declared by th e d irec tors. The dividend w as payable J a n u a ry 2nd to stockholders of record De cem ber 23rd. A to tal of $4,000 w as paid on th e $200,000 capital stock. G oes to Illinois J. R. R oberts has accepted th e posi tion of cashier of th e recen tly form ed E rie State Bank, located at E rie, Illi NE WS • nois, w hich is to be opened for busi ness early this year. Mr. R oberts has been cashier of the F irs t N ational B ank of D eW itt, Iowa, com ing from M arion, Iowa, in October of 1941. of Commerce in 1942-43, and last year w as vice p resident of the organization. Mr. K lein’s en tire business career has been in banking. His first job follow ing his graduation from N otre Dame Heads Des Moines C . of C . H arold P. Klein, vice presid en t of th e Iowa-Des Moines N ational B ank & T ru st Company, w as elected presid en t of th e Des Moines C ham ber of Com m erce at its an n u al m eeting last m onth. He served as tre a su re r of th e C ham ber AM ERICAN N ATIO NAL BA N K AND TRUST COMPANY O F C H I C A G O LA S A LLE STREET AT W A S H I N G T O N ---------------:------- ds? ntsi*----------------------Member Federal Deposit "gSI Insurance Corporation STA TEM EN T AT TH E O F C O N D IT IO N C LO SE O F B U S IN E S S D E C E M B E R 30, IOTI HAROLD P. KLEIN Chamber of Commerce President IK I<: S O IT IK C K s C ash an d due from b a n k s ........................................ $ 44,473,863.03 U nited S tates G o v ern m en t obligations — direct and fully g u a r a n te e d .............................................. M unicipal an d o th e r m a rk e ta b le securities . 90,131,560.23 . 15,602,948.57 Loans an d d is c o u n ts .................................................... 35,938,316.39 F ederal R eserve B an k s t o c k ................................... 150,000.00 C ustom ers’ lia b ility on a c c e p ta n c e s....................... 107,889.23 A ccrued in te re st r e c e i v a b l e ................................... 437,138.54 O th er a s s e t s ............................................................... 46,273.55 $186,887,989.54 L IA B IL IT IE S C ap ital s t o c k ............................................................... $ 2,000,000.00 S u r p l u s ........................................................................... 3,000,000.00 U ndivided p r o f i t s .................................................... 907,649.63 . 1,181,037.57 U nearned d i s c o u n t .................................................... R eserve for taxes, in te re st, contingencies, etc. 373,388.14 L iability on a c c e p t a n c e s ........................................ 107,889.23 D eposits: D e m a n d ......................................$146,045,331.24 U nited S ta te s G o v ern m en t . O ther public funds . . . . S avings........................... 22,764,837.08 3,460.91 10,504,395.74 w as w ith th e Iowa-Des Moines N ation al Bank, w here d u rin g the p ast 18 years he has risen to his p resent posi tion w ith the institution. Pioneer Banker Dies H a rry G. H u n tin g to n passed aw ay at Council Bluffs, Iowa, last m onth after an illness of several years. Mr. H u n tin g to n w as born in Dixon county, Illinois, and w hen a young m an cam e to Iowa, locating at Rock Rapids, w here he becam e cashier of the F irst N ational B ank of th a t city, a posi tion w hich he held u n til 1888 w hen he and his fam ily cam e to Onawa, Iowa, w here he established th e Onawa State Bank, of w hich he w as president u n til 1917 w hen ill health forced him to re tire. Allen M uir, cashier, has been elected to fill th e vacancy created by the death of Mr. H untington. Mrs. F l o r e n c e H u n tin g to n w as elected to th e board of directors, w hich includes C. R. Nixon, O. C. B akke and O. R. McNeill. 179,318,024.97 $186,887,989.54 United States Government obligations and other securities carried at $36,179,684.09 are p ledged to secure pu b lic a n d trust deposits and fo r other purposes as required or perm itted by law. YOUR STATE BANKERS ASSOCIATION OFFICIAL SAFE, VAULT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. OM AHA Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 OUR 50th Y EAR 67 • IOWA NEWS • Bank Farm Manager Pays Annual Dividend B ert B oatm an of Bloomfield, Iowa, w ell know n Davis county farm er, has replaced W alter Blasi as th e farm m an ager for th e E xchange Bank, Bloom field, E d w ard B urch ett, president, a n nounced. Mr. Blasi resigned th e posi tion to m ove to th e K ing farm , n ear Pulaski, w hich he recen tly purchased. P rio r to becom ing associated w ith th e b ank th e first of th is y e a r he w as su p e rin te n d e n t in Davis county for th e Iow a H ighw ay Commission. The S tate B ank of V inton, Iowa, last m onth paid 1944 dividends to its stock holders at th e ra te of $5 per share. The dividend p aym ent has been the sam e for a n um ber of years. Takes Over Branch Bank W. J. Schw endem an of H ubbard, Iowa, has tak en over his duties as cash ier of th e A plington Bank, w hich is a b ranch of the A ustinville Savings B ank of A ustinville, Iowa, recently p u r chased by C arstens B rothers. Mr. and Mrs. Abe Voogd are discon tin u in g th e ir connections w ith th e bank, Mr. Voogd having been in the b ank 20 years. Mr. Schw endem an has been in th e business for th e last 30' years and before com ing to A plington w as w ith th e Security B ank a t H ub bard. Retires From Presidency W illiam Buxton, Jr., tendered his resignation from th e presidency of th e Peoples T ru st & Savings Bank, Indianola, Iowa, at a m eeting of th e directors Decorated The F a rm e rs T ru st and Savings B ank, E arlin g , Iowa, has ju s t finished rem odeling. T he fixtures have been cu t down, in te rio r enlarged, a block floor laid and new fu rn itu re added, re fu rn ish in g and reb u ild in g both th e o u t side and inside. Association Names Officers M em bers of th e Story C ounty B an k ers A ssociation held th e ir a n n u al m eet ing last m o n th in N evada, Iowa. An im p o rta n t action of th e group w as th e passage of a reso lu tio n to th e Story C ounty P o stw ar P lan n in g Com m ission in th e ir cam paign to secure funds for c u rre n t operations. The b an k in g group elected new offi cers as follows: H arold F aw cett, State B an k & T ru s t Com pany, N evada, p resi dent; H en ry M artin, U nion Story T ru st & Savings Bank, Ames, vice p resident; H. P. McNeil, A m es T ru s t & Savings B ank, secretary -treasu rer. Entertain Bank Staff P re sid e n t and Mrs. R. H. B arb er en te rta in e d th e C itizens N ational Bank, Boone, Iowa, staff and th e ir h u sbands or w ives a t a C hristm as p a rty last m onth a t th e ir home. T he evening w as enjoyed playing card gam es and w ith vario u s o th er e n te rta in in g games, d u rin g w hich a gift exchange w as also enjoyed. Leaves Bank K en n eth Seeley, em ployed by th e C om m ercial S tate B ank, Afton, Iowa, since J a n u a ry 1, 1936, and its cashier since 1939, has resigned his position. Mr. Seeley has had charge of d e p a rt m ental w o rk of th e b an k in addition to ro u tin e duties in w hich a large clientele w as served in m ak in g incom e ta x re tu rn s. He opened an office in A fton J a n u a ry 1st, w h ere th e incom e ta x service will be continued, to g eth er w ith o th er services. H e w ill re ta in his in te re st in th e b an k and rem ain on its board of directors. OUR 50th YEAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis MEAT PACKING—An Important Industry From livestock shipper to commission firm to packing company to cooler. Then to the ultimate consumer. . . . It’s a long chain that meat and by-products follow . . . with many links. And each link helps make meat packing what it is today—America’s third largest industry in product value. The Drovers National Bank is located close to the throb bing heart of the world’s largest stock yards. And for sixtythree years, the Drovers staff has specialized in dependable, rapid, and accurate service to bankers with important inter ests in the livestock field. Y our inquiry is invited. UNION STOCK YARDS CHICAGO 1 4 7 ,7 0 0 ,0 0 0 H e a d B u t c h e r e d in 1943 (Cattle, calves, sheep, lambs and hogs.) Proceeds: $6,000,000,000 Pounds of Meat: 24,333,000,000 Members, Federal Deposit Insurance Corporation DROVERS NATIONAL BANN DROVERS TRUST S- SAVINGS BANK U N I O N S T O C K CHI CAGO Y A R D S mmmmm ■ ■ ■ ■ H U B Northwestern Banker January 19^5 68 * last m onth. T hey elected L ieut. W il liam Buxton, III, to succeed h is fa th e r as president. T he elder Mr. B uxton w ill continue as ch airm an of th e board. H e h as been active in b an k in g for 52 years. W. N. G ran t w ill act as executive vice p resid en t u n til B uxton re tu rn s from service w ith th e navy. T he tw o B uxtons are th e larg est stockholders in th e bank. Land Bank Director Jo h n D. A dam s of Des M oines has been re-elected for a four-year te rm as public in te re st directo r of th e regional I O W A N E W S federal hom e loan bank, Jam es Twohy, governor of th e F ed eral Home Loan B ank System , announced last m onth. The regional b an k is located in Des Moines. Resigns From Board In o rder th a t he m ig h t give m ore a tte n tio n to personal affairs, E. L. W il liam s has resigned as vice p resid en t and director of th e S ecurity Savings Bank, M arshalltow n, Iowa, it w as an nounced recently. To fill th e vacan cies th u s created, J. M. Considine, vice p resid en t and general m anager of th e M arshalltow n M anufacturing C o m THE NORTHERN TRUST COMPANY C H IC A G O Statem ent o f Condition, December 30, 1944 U . S . G o v e r n m e n t S e c u r i t i e s ................................................... 4 8 1 ,2 1 3 ,8 9 9 .1 8 O t h e r R o n d s a n d S e c u r i t i e s ...................................................... 8 6 .7 2 3 ,3 9 9 .4 7 F e d e r a l R e s e r v e B a n k S t o c k ...................................................... 4 5 0 .0 0 0 .0 0 B a n k P r e m i s e s ........................................................................................ 1 ,4 0 0 ,0 0 0 .0 0 C u s t o m e r s ’ L ia b ilit y , A c c o u n t L e t t e r s o f C r e d it a n t i A c c e p t a n c e s .............................................................................. 5 4 4 ,8 4 5 .9 0 O t h e r R e s o u r c e s ................................................................................... 2 3 0 ,8 6 1 .4 9 C a s h a n t i D u e f r o m B a n k s ......................................................... 1 3 0 .0 0 0 ,3 1 8 .2 7 T O T A L ........................................................................................................$ 7 5 4 ,6 3 7 .2 9 9 .4 6 LIA BILITIES C a p i t a l S t o c k .........................................................................................$ 3 ,0 0 0 ,0 0 0 .0 0 S u r p l u s F u n d ........................................................................................ 1 2 ,0 0 0 ,0 0 0 .0 0 U n d i v i d e d P r o f i t s ................................................................................ 3 ,8 0 7 ,8 6 8 .5 8 R e s e r v e f o r T a x e s , I n t e r e s t , e t c .............................................. 9 ,8 7 7 ,0 3 2 .5 3 D i v i d e n d P a y a b l e J a n . 2 , 1 9 4 5 ................................................ 1 3 5 ,0 0 0 .0 0 L e t t e r s o f C r e d it a n d A c c e p t a n c e s O u t s t a n d i n g . . 5 4 6 ,8 6 9 .9 0 O t h e r L i a b i l i t i e s ................................................................................... 8 2 ,2 6 9 .5 6 D e p o sits: 2 0 6 ,3 8 7 ,3 8 8 .6 5 7 2 5 ,1 8 8 ,2 5 8 .8 9 United States Government securities carried in the above statement at $212,164,042.48 are pledged to secure public and other monies, as required by law; and United States Government and other securities carried at $527,410.58 are deposited with the State Authorities under the Trust Act. Member Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W A It January 1945 B O N A pplication has been m ade for a state c h a rte r for a new b ank to be opened in Indianola, Iowa, in th e n e a r fu tu re, of w hich W. H arold B renton of Des Moines w ill be president. C harles D. McCoy, a ssistan t vice p re s id en t of th e Iowa-Des Moines N ational Bank, w ill move to Indianola to be come executive vice presid en t and cashier. Mr. B renton said th e b an k w ill h av e a capital stock of $50,000, w ith su rp lu s of $10',000 and undivided profits of $10,000, and has been approved by th e F ed eral D eposit In su ran ce C orporation. Mark 50th Year R ecently th e P rim g h ar Savings Bank, P rim ghar, Iowa, celebrated its fiftieth birthday, w hen it held open house from 2:00 to 10:00 o’clock. G uests w ere greeted by th e b a n k ’s officials, A. E. Ohme, E. T. P eterso n and W. A. H oeven. B S The U nion Story T ru st and Savings Bank, Ames, Iowa, has com pleted a $5,000 rem odeling job in its building. The w ork resu lted in a stream lin in g of th e b a n k ’s in terio r w ith elim ination of all cages, cu ttin g th e fo rm er m etal p artitio n s betw een th e public and b u si ness sides of th e b an k dow n to th e level of th e m arble p a rtitio n w ork an d the in stallatio n of w aln u t paneling. Cashier at New Hampton A. C. Thiel, assistan t cashier of th e L ancaster, W isconsin, S tate B ank sin ce 1931, has resigned to come to N ew H am pton, Iowa, as cashier of th e Se c u rity State Bank, succeeding W illiam E. H urley, w ho has sold his in te re st in> th e b ank to o th er stockholders. Mr. Thiel w as em ployed by th e Goodhue, M innesota, S tate B ank before go ing to L ancaster. AND 1 0 0 ,8 1 7 ,2 0 3 .6 3 T O T A L ............................................................................................................$ 7 5 4 ,6 3 7 ,2 9 9 .4 6 B U Y Bank for Indianola PASS BOOKS D e m a n d .......................................................... $ 4 1 7 ,9 8 3 ,6 6 6 .6 1 U . S . G o v e r n m e n t ............................... pany, w as elected to th e board of direc to rs and N. C. N ielsen w as elected as vice president. Streamlined R E SO U R C ES L o a n s a n t i D i s c o u n t s ....................................................................$ 5 4 ,0 7 3 ,9 7 5 .1 5 T i m e ................................................................ * CHECK COVERS S TA T IO N ER Y DEPO SIT SLIPS A D V ER TISIN G S P EC IA LT IE S J. W. ROOVAART I 1 3 17 F o r t y - f o u r t h S t re e t D E S M O I N E S 1 1, I O W A E s t a b l i s h e d 1916 OUR 50th YEAR 69 You Can Bank on the Future of A ir Commerce By A. M. Strong Vice President The Public National Bank & Trust Com pany of New York E do not, as yet, know th e po te n tia litie s of air tra n sp o rta tio n , how ever, th e progress m ade d u rin g th e last five y ears and th e p lans a n nounced by a ir c a rrie rs w ould lead m e to believe th a t air fre ig h t is com ing of age. W h at is th e role of th e b a n k e r in air com m erce? F u n d am en tally , th e re is no difference in b an k financing of ocean cargo, land cargo or air cargo. The b a n k e r’s role is m anifold. He provides th e funds n ecessary for th e W cost. The charge for le tte r of credit financing is as a ru le one and oneh alf p er cent p er annum . T he accept ance discount is now one-half p er cent to five-eighths p er cent p er annum . In financing shipm ents, w h e th e r in dom estic or in tern atio n al traffic, banks as a ru le consider th e u n d erly in g m er chandise as secu rity for th e tra n sa c tion. T he bills of lading in ocean and land traffic give th e b ank as consignee or holder of th e in stru m e n t title to th e goods. T he airw aybills p resen tly used by th e air carriers do not clearly define in w hom title to th e goods is vested. You, of course, know th a t trad e is n o t conducted on a cash-in-advance mIIImi pò in ninnii l i UMUI iilin àiIl 1 y ill OTTUMWA, IOWA Member of Federal Reserve System Statement of Condition as of December 30, 1944 A. M. STRONG Air Freight W ill Need Financing tra n sa c tio n by exten d in g cred it to th e im p o rter or exporter, acts as th e sh ip p e r’s ag en t in collecting th e value of th e goods; acts for th e b u y er in u n d ertak in g to pay th e seller for the shipm ent; provides foreign exchange; fu rn ish es cred it data and perform s o th er functions. B anks have established an efficient m echanism for th ese tran sactio n s. T h ro u g h th e irrevocable le tte r of credit, th ey u n d e rw rite th e b u y e r’s prom ise to pay for th e goods. T hrough collection arran g em en ts, th e y re ta in custody of goods shipped u n til p ay m en t is received. T h ro u g h foreign exchange fu tu re contracts, th e y elim in ate th e risk of exchange fluctuation so th a t th e p arties to th e tran sactio n m ay pay and receive p ay m en t for th e goods in th e am o u n ts o riginally ex pected. All th ese functions are perform ed by b an k s a t an ex trem ely m oderate OUR 50th Y EA R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RESOURCES .$ 1,627,217.29 Loans and D iscounts........ . 99.000. 00 Bank Building .................... . . . . . . . 23,769.17 F urniture and F ix tu res...................... 4,600.00 O ther Real E sta te .............................. 21.000. 00 Stock in Federal Reserve Bank . . . 3,924.54 O verdrafts .............. ............................ U. S. Bonds. ......................................... . .$5,862,136.48 Municipal Bonds . . . ................... . . . .. 2,161,903.00 792,844.16 O ther M arketable Bonds . . .......... 12,521,305.29 . . 3,704,412.65 Cash and E x ch an g e................... $14,300,816.29 L IA B IL IT IE S Capital .......... ...................................................................... .$ 300,000.00 400,000.00 Surplus ................................................................................. 99,876.52 Undivided Profits ............................................................ 15,000.00 Dividend payable January 2, 1945................................ D e p o s its ............................................................................... 13,485,939.77 $14,300,816.29 ■ ■ ■ OFFICERS FRANK VON SCHRADER, Chairman of Board and President H. L. POLLARD. Vice President W. C. MILLER, Assistant Cashier R. W. FUNK, Vice President FRED DIMMITT, Assistant Cashier MAX VON SCHRADER, V.-Pres. & Cashier FRANK M. POLLARD, Asst. Cashier C. P. GLENN, Assistant Cashier C. G. MERRILL, Trust Officer J. C. BLACKFORD, Manager Budget Loan Department Southern Iowa's Largest Bank Member Federal D eposit Insurance Corporation Northwestern Banker January 19^5 70 . basis and th a t air tra n sp o rta tio n of cargo cannot develop fully w ith o u t bank financing. T he a ir c a rrie rs are aw are of th is situ atio n and are co operating w ith th e b anks in develop ing th e p ro p er docum ents. I m entioned earlier th a t th e financ ing of a ir sh ip m en ts is identical w ith the financing of land or ocean sh ip m ents. T here is, how ever, th e tim e elem ent w hich places air sh ipm ents in a different category. A com m it m en t by a b an k to finance an ocean sh ip m en t m u st n ecessarily cover a considerable period as it freq u en tly IOWA NEWS . tak es m any w eeks for th e sh ip m en t to be tra n sp o rte d from th e in te rio r to th e p o rt and from th e p o rt to d estin a tion. The situ atio n is different w hen a ir sh ipm ents are involved. The tim e req u ired to liquidate th e loan is m ate rially curtailed. T his m ay eventually play an im p o rtan t p a rt in b ank financ ing and in the capital req u irem en ts for certain types of business. T here is every indication th a t th e tra n sp o rta tio n of cargo by air is em erging from th e express stage and is en terin g th e freig h t stage. It w ill ev en tually take its place w ith the ocean and land tran sp o rtatio n . banks have an im p o rtan t role in developm ent. They w ill provide financial facilities necessary for commerce. The th is th e air Des Moines News At th e ir board m eeting last m onth m em bers of the Central N ational Bank and T rust Company voted to m ake an increase in the b an k ’s su rp lu s account of $150,000, changing p resen t su rp lu s figures from $600,000 to $750,000. P resid en t and Mrs. B. F. Kauffm an, ran B ankers T ru st Company, are enjoying the w arm sun and out of doors these days at th e ir w in ter hom e in E ustis, Florida. Baird F ryer, a ssistan t cashier a t the Iowa-Des Moines N ational B ank and T ru st Company, w as elected p resid en t for th e com ing y ear of th e Des Moines M ortgage B ankers Association a t th e ir m eeting held last m onth. JJ BROADWAY AND OLIVE S T . L O U I S 2, MISSOURI Statement of Condition, December 30, 1944 RESOURCES C a sh a n d d u e from b a n k s .................................................................... $ 50,348,400.20 U. S. G o v ern m en t S e c u ritie s .................................................................. 105,608,276.40 (In clu d in g th o se p le d g e d $52,850,000.00) O th er B onds a n d S e c u ritie s ........... ...................................................... 11,301,916.24 F e d e ra l R e se rv e Bank S to c k .................................................................. 252,000.00 L oans a n d D isc o u n ts................................................................................ 53,649,885.81 C u sto m ers' L iability on A c c e p ta n c e s a n d L etters ol C r e d i t ... 326,827.81 R eal E state .................................................................................................. 930,991.04 A ccru ed E a rn in g s R e ceiv ab le (N et).................................................. 507,878.95 O v e rd ra fts .................................................................................................... 6,273.97 O ther R eso u rces ......................................................................................... 75,008.13 $223,007,458.55 LIABILITIES C a p ita l ........................................................................................................... $ 6,000,000.00 S u rp lu s a n d U ndivided P ro fits.............................................................. 5,016,546.89 A ccru ed In te re st, E x p en ses a n d T ax es P a y a b le (Net) a n d O th er R e se rv e s .................................................................................. 1,647,220.62 A c c e p ta n c e s a n d L etters of C re d it....................................................... 326,827.81 O th er L iabilities ......................................................................................... 179,461.28 D eposits: U. S. G o v ern m en t, a n d O ther P ublic F u n d s ..............................................$ 39,961,420.83 O th er D eposits .............................................. 169,875,981.12 209,837,401.95 $223,007,458.55 ill® I I mÊËïâmà https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19J5 In addition to a C hristm as bonus paid each year at th a t season to m em bers of th e Central N ational, th is y e a r th e b ank m ade paym ents to talin g nearly $100,000 u n d er th e title of p ast service benefits to b ring all pension funds up to date. Carl W. M esmer, vice p resid en t of th e B ankers T rust, rep o rts a su rp rise v isit from his son, Lt. Carl W. M esmer, Jr., USMC, w ho w as hom e on a 10-day furlough last m o n th afte r 18 m onths in th e South Pacific. L ieu ten an t Mes m er has re tu rn e d to his base there. The V alley Savings tained b ank m em bers, husbands and friends a t C hristm as p a rty held Moines Club w ith d in n er Member Federal Deposit Insurance Corporation Northwestern Banker Joining th e staff of th e Iow a State B ank last m onth was Charles E. Fleenor, w ho from 1937 u n til recently has been a ssistan t cashier of th e F arm ers and M erchants Savings Bank, W aterville, Iowa. F rom 1928 to 1937 Mr. F leenor w as a ssistan t exam iner in charge in th e state banking d ep art m ent. He sta rte d his banking career in 1909 in M anson, Iowa, and some tim e la te r w as connected w ith th e W ar F inance Corporation. e n te r th e ir wives, th e ir an n u al a t th e Des and dancing. Bank Orville M. Garrett, vice presid en t of th e Iowa-Des Moines N ational, w as re-elected p resid en t of th e Des Moines Golf and C ountry Club for 1945. OUR 50th YEAR 71 -• IOWA NEWS •- C ashier J. R. A stley, of th e V alley Savings, h as been elected vice p re si den t of th e Iow a M ortgage B ankers A ssociation. b ran ch office of Rock R apids State B ank, u n d er th e m anagem ent of Mr. P ru itt, w ho is to be m anager of th e new Inw ood bank. A. F. E rick so n , assista n t cashier of th e B an k ers T ru st, gave th e slip to some of th e cold w eath er w h en he took a holiday trip to T exas to v isit w ith relatives. Joins Insurance Company Former Banker Dies F u n e ra l services w ere held a t Seat tle, W ashington, recen tly for M artin H agensick, officer of a G uttenberg, Iow a, b an k d u rin g th e early th irtie s, and cash ier of th e F a rm e rs Savings B ank in Edgewood, several years. D u r ing th e depression period he w as re ceiver of closed b an k s a t Nauvoo, Illi nois; St. A nsgar, and N orthw ood, Iowa. Inwood May Have Bank Inw ood m ay soon have a new homeowned, hom e-operated bank, according to in fo rm atio n released last m onth. All capital stock for th e proposed organization of a b a n k has been tak en up, Cliff P ru itt announced. I t is u n derstood th a t th e new e n te r prise w ill tak e over th e in te re sts of th e BANKERS and W. W. L inebarger has resigned his position as cashier of th e R u thven S tate Bank, R uthven, Iowa, to accept a position as general agent for the A m erican M utual Life In su ran ce Com pany, w ith offices located a t Storm Lake. Mr. L inebarger has been cash ier of the R u th v en b an k since its or ganization th ree y ears ago. W illiam B rennan, a ssistan t cashier, has been appointed to fill th e vacancy. V erla Nelson, w ho has been bookkeep er, w ill become th e a ssistan t cashier, and L avonne Meng has tak en h e r place as bookkeeper. Mr. L inebarger w ill continue his services at th e b an k as a m em ber of th e board of directors. On Land Bank Association P. J. M orrow, Logan, Iowa, secretarytre a su re r of th e H arriso n County N a tional F a rm L oan A ssociation, w as elected p resident of th e E ig h th Fed- S EC U R ITY N A TIO N A L B A N K SIOUX CITY, IOWA Statement of Condition December 30, 1944 ASSETS Cash on Hand and on Deposit with Banks - $ 5,456,299.43 United States Government Securities 8,819,196.62 Bonds and S e c u r i t i e s ............................................. 2,000.00 Loans and D i s c o u n t s ................................................. 5,457,116.56 Security Bank Building,Vault and Fixtures 100,000.00 Federal Reserve Bank S t o c k ................................. 24,000.00 Other A s s e t s ................................................................. 441.98 FARMING Every banker wants to know What’s Ahead? O.A.S. AGRICULTURAL DIGEST A service that will help to keep you up to date on “Business and A griculture” and other semi-monthly releases. In itial cost $15, including six months service and $10 a year thereafter. DoaneAgricultural Service INCORPORATED Home Office: St. Louis, Missouri T h e O ld e s t a n d L a rg est F arm M an a g e m e n t a n d A p p r a is a l S erv ice in th e U n ite d S ta tes. F or Complete In fo rm a tio n and Sample Releases, W rite to DOANE AGRICULTURAL SERVICE, Inc. 205 Plym outh B uilding Des M oines 9, Iow a OUR 50th Y EAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $19,859,054.59 Capital Surplus Undivided Profits Reserves Deposits LIABILITIES ...........................................$ 500,000.00 .......................................... 300,000.00 ................................................... 66,199.42 ............................................... 13,340.20 ........................................... 18,979,514.97 $19,859,054.59 D IR E C T O R S PAUL BEKINS GEORGE L. BOOTH Vice President, Bekins Van & Storage Co. President, Booth & Olson, Inc. President, Terminal Grain Corp. HAROLD A. JACOBSEN President, F. M. Slagle & Co. Vice President and Secretary CHARLES R. GOSSETT Albertson & Company, Inc. President HARRY P. PRATT WM. W. MACFARLANE Vice President and Manager President Macfarlane Coal & Lumber Co. Grandy-Pratt Co. OTIS P. GARRISON President, Wagner, Garrison & Abbott ☆ EDWARD C. PALMER Vice President, Allied Laboratories, Inc. Trustee, W. B. Palmer Estate ☆ Commander United States Navy Now serving with our armed forces CHARLES R. GOSSETT, President B. M. WHEELOCK, Vice President ALBERT C. ECKERT, Vice President R. EARL BROWN, Cashier OFFICERS DANIEL B. SEVERSON, Assistant Cashier FRANK H. ABEL, Assistant Casfiier ALVIN G. NELSON, Assistant Cashier ROBERT W. LEWIS, Assistant Cashier Member Federal Deposit Insurance Corporation Northwestern Banker January 194-5 72 • eral L and B ank D istrict A ssociation of S ecretary -T reasu rers a t th e annual m eeting held in Om aha recently. Bank Expands A new fro n t and extensive rem odel ing is p lanned by th e U nion B ank & T ru st Com pany, O ttum w a, Iowa, for its building ju s t one door east of its p rin cipal business location, w h ere m odern offices w ill be con stru cted to house th e b a n k ’s budget loan d ep artm en t. A nnouncem ent w as m ade last m onth by R obert W. F u n k , U nion B ank vice president, w ho said th a t new q u a rte rs I OWA NE WS • for th e b a n k ’s budget loan d ep artm en t w ill be req u ired to accom m odate the increasing business in th is d ep artm en t and an anticipated enlargem ent of th e service following th e w ar. J. C. Black ford is m anager of th e departm ent. Retired Banker Dies Olof Nelson, 75, active in business in South D akota and Sioux City u n til his re tire m e n t about a y ear ago, died last m onth in Sioux City, Iowa. Mr. Nelson organized th e Murdo, South Dakota, bank, of w hich he w as president, and he later w as associated (om m ercefrtist (om pany w ith th e M itchell N ational B ank as an official. In 1914 he w ent to Sioux City, and beginning in 1916 w as p resid en t of the F irs t T ru st and Savings B ank th e re for 15 years. In later y ears he w as connected w ith th e F ederal Regional A gricultural C redit C orporation, an as sociation retain ed u n til his retirem en t. Attends Tax School George W. M orrow, cashier a t th e G uthrie C ounty State Bank, G uthrie Center, Iowa, re tu rn e d recen tly from Ames, Iowa, w here he atten d ed an in come tax school, sponsored by the Iowa B ankers A ssociation. Mr. M or row received full in form ation on th e new incom e ta x laws and w ill give as sistance to ban k p atro n s in th e com pil ation of th e ir tax form s. T he service is one reg u larly offered by th e G uthrie C ounty State Bank. 18-1 Established 1865 Elected Club President Kansas City, Missouri M ember Federal Reserve System S ta t e m e n t o f C o n d it io n a t C lo se o f B u s in e s s D e c e m b e r 30, 1 944 RESOURCES Cash and Due from Banks____________________ $125,183,913.28 U. S. Obligations, Direct and Fully G uaranteed- 192,856,503.34 $318,040,416.62 State and M unicipal Bonds___________________ 25,147,859.39 Stock of Federal Reserve B ank________________ 360,000.00 Other Bonds and Securities_____________________ 2,811,637.21 28,319,496.60 Loans and Discounts__ ______________________ Bank Premises and Other Real Estate Owned________________ Customers’ L iability Account Letters of C redit_______________ Accrued Interest Receivable_______________________________ Overdrafts ________________________________________________ O ther Resources___________________________________________ 59,579,592.56 1,797,501.00 21,677.20 596,366.44 26,742.81 1,137.16 Total Resources-------------------------------------------------------- $408,382,930.39 LIA BILITIES Deposits: U. S. Government Deposits__________________ $ 42,307,389.78 Other Deposits_____________________________ 348,688,542.09 $390,995,931.87 Capital _____________________________________ Surplus _____________________________________ U ndivided Profits____________________________ 6,000,000.00 6,000,000.00 4,729,781.83 16,729,781.83 Liability Account Letters of C redit_________________________ Accrued Interest, Taxes and Expense________________________ O ther L iabilities----------------------------------------------------------------- 21,677.20 629,486.87 6,052.62 Jo h n Cruise, cashier of th e F a rm e rs Savings Bank, M assena, Iowa, w as elected presid en t of th e Cass County L ast M an’s Club* at its an n u al b an q u et at th e Legion M emorial B uilding at A tlantic, Iowa, last m onth, and nam ed secretary w as M aurice O strus of Cum berland. A bout 125 attended th e b an quet, w hich Hugo Saggau of Denison, state com m ander of th e A m erican L e gion, w as th e speaker. List 1945 Officers The reg u lar an n u al m eeting of th e Lee County B ankers A ssociation w as held at F o rt Madison, Iowa, last m onth, w ith P resid en t R ay Schm idt of th e Cit izens State Bank, Donnellson, in charge. A t th e election of officers th e banks rep resen ted cast an en tire vote for the following: P resident, A. J. Vonderhaar; vice president, L. I. Peel, and secretary -treasu rer, P aul G. Sm ith. Mr. V onderhaar is a ssistan t cashier of th e Iow a S tate B ank at F o rt M adi son. Mr. Peel is the new cashier of th e F a rm e rs Savings B ank of W ever, and Mr. Sm ith is th e a ssistan t cashier of th e Security State B ank of K eokuk. Banks Sold or Bought! quietly, quickly and in a personal manner Total L iabilities_____________________________________ Member Federal Deposit Insurance Corporation. $408,382,930.39 JAY A. WELCH BANK BROKER Haddam, Kansas “36 Years Practical B anking Experience” Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 OUR 50th Y EA R 73 th a t w asn ’t very satisfactory to have th em piling into th e car and all over everything. “In th is tra ile r we have our co u n ter and adding m achine. It is so m uch easier and you are com fortable. One of us does the w ritin g u n til th ey are th ro u g h w ith th e little stuff and m a chinery. T hen he goes to th e tra ile r and the o ther one of us finishes up th e sale on th e livestock. W e have Clerking Sales Made Easy panics and depressions B ANKS w hich m ake it a practice to clerk farm sales, and m ost co u n try ban k s do, w ill be in terested in th is practical idea recen tly in au g u rated by th e F a rm e rs T ru st & Savings Bank, Spencer, Iowa. The b an k has p u r chased an autom obile trailer, fitted the in te rio r into an office, installed ade quate heating, and th e tra ile r goes to all th e farm sales in th e com m unity. H ere is w h a t L. A. W itter, p resid en t of th e F a rm e rs T ru s t & Savings Bank, says about th e ir office tra ile r: “W e certain ly w ould not like to clerk sales w ith o u t it. I believe th e farm ers them selves th in k m ore of th e trailer, actually, th a n we do. W hen farm ers have been tram p in g around th e farm in the yards and everyw here, th ey don’t care to go into th e house to set tle and w hen it is cold w eather, it is h ard to get settlem ents unless you do go in th e house. W e used our car for q uite awhile. By ru n n in g the car and keeping th e h eater on, we did get quite a few settlem en ts in. How ever, have weathered the storm. Today, as in past years, we will continue to successfully serve Iowa business men to the best of our ability. H ESTABLISHED - ■> STATIONERS V 1889 7 BOOK BINDERS OFFICE O U T F IT T E R S ^ ^ T ^ -^ B U S IN E S S MACHINES Grand Ave . at Fourth Des Moines , Ia . N O W WE CAN FU R N ISH NEW BANK VAULT DOORS and NEW SA FE DEPOSIT BO XES WE HAVE A REPRESENTATIVE NEAR YOU Our engineering service is available. May we help you with your rem odeling or expansion plans? No obligation. H E R R I N G - H A L L - M A R V I N SAFE COMPANY MAIN OFFICE AND FACTORY — HAMILTON, OHIO BRANCHES: NEW YORK — CHICAGO — WASHINGTON M anufacturers o f Night Depositories. Tellers’ Lockers. Steel Counters. Steel Transfer Cases. Burglary-Resistive Chests. “Point of Use” System Safes. Personal Safes. Steel Files. We also have used Bank \ an It Doors, Steel Vault Linings, Grilles, Night Depositories, Etc. OUR 50th Y EA R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 19J5 74 • been able so far to get practically every settlem en t before leaving th e place. W e had one sale w h ere th e re w ere 500 item s sold. W hen we cam e hom e th a t night, we only had th re e on th e list w ho h a d n ’t settled and th e y w ere large item s. One w as for h ay and th e y couldn’t tell th e exact n u m b er of bales. “I can assu re you we w ill nev er go w ith o u t one.” Buys Building T he C entral N ational B ank & T ru st Com pany, Des Moines, has p urchased IOWA NE WS • th e C rocker Building, southw est corner of F ifth A venue and L ocust Street, from th e Conrad Y oungerm an estate. The seven-story C rocker Building, w hich w as bu ilt in 1893, is valued at $157,820 by th e assessor’s office. It has a frontage of 132 feet on L ocust and 66 feet on F ifth. The C entral N ational Bank, 314 F ifth A venue, occupies a building of the sam e area as the C rocker B uilding and adjoining it to th e south. New Iowa Bank M anchester’s second b an king in sti tution, the F irs t State Bank, opened its doors to th e public Ja n u a ry 2nd. The paid-up capital stock of the new in sti tu tio n is $50,000, a su rp lu s of $10,000, and undivided profits of $5,000. C harles Kelley, u n til recen tly a resid e n t of M anchester and w ho for several y ears was chief exam iner of th e Iow a B ank ing D epartm ent, is executive vice p resi dent of th e bank. A. W. S tearns is president. New Officers Named THE ROYAL BANK W alter G. Kim ball, p resid en t of The Com m ercial N ational B ank and T ru st Com pany of N ew York, announced th e appointm ent of A lexander M aximow as a ssistan t m anager of- th e F oreign De p artm en t, and Paul R. V ervoort as as sistan t cashier. To New Positions R obert L in d q u ist and K enneth R. W ells w ere elected a ssistan t vice p resi dents of the A m erican N ational B ank and T ru st Com pany of Chicago a t th e OF CANADA H e a d O ffic e , M o n t r e a l MORRIS W. WILSON President W. F. ANGUS Vice-President S. G. DOBSON Vice-President and General Manager Condensed A nnual S tatem en t as on N o v e m b e r 30, 1944 A SSETS Cash on H and, in B anks and in B ank of C anada $ 377,752,788 G overnm ent, P rovincial and M unicipal S ecuri 908,097,050 ties not exceeding m arket v a lu e ......................... O th er Bonds, D ebentures and Stocks not ex ceeding m ark et v a lu e ............................................ 27,493,292 Call L oans ................................................................. 64,506,075 C om m ercial L oans ................................................... 354,640,163 B ank P rem ises ......................................................... 12,276,454 L iabilities of C ustom ers u n d er L e tte rs of C redit and o th er A ssets ................................................... 45,485,980 $1,790,251,802 L IA B IL IT IE S Capital, R eserve and U ndivided P ro fits ............... $ 59,823,247 N otes of the B ank in C ircu latio n .......................... 9,580,371 D eposits ........................................................................ 1,676,884,696 L etters of C redit and O th e r L iab ilities............... 43,963,488 $1,790,251,802 Over 500 Branches in Canada and Newfoundland 61 Branches Abroad, including: LONDON, NEW YORK, HAVANA, BUENOS AIRES, RIO DE JANEIRO. SAO PAULO, MONTEVIDEO, LIMA, BOGOTA, CARACAS, BELIZE, NASSAU, also in PUERTO RICO, DOMINICAN REPUBLIC, HAITI, BARBADOS, DOMINICA, JAMAICA, ST. KITTS, TRINIDAD, MONTSERRAT, ANTIGUA, GRENADA, BRITISH GUIANA. NORMAN G. HART NEW YORK AGENCY EDWARD C. HOLAHAN 68 William Street Agents Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 K ENNETH R. WELLS Assistant Vice President D ecem ber m eeting of the b a n k ’s board of directors. Mr. W ells, w ho as a ssistan t cashier of th e b ank has been in charge of o per ations of its In d u stria l L oan Division, w ill continue in th a t capacity. Before joining th e A m erican N ational B ank in 1939, he w as associated w ith th e B. F. Goodrich Company, followed by ten y ears w ith th e C.I.T. C orporation in various capacities. He is a grad u ate of th e U n iv ersity of M innesota and T he G raduate School of B anking, and is a OUR 50th YEAR 75 -• m em ber of th e N ational C onstruction M achinery C redit Group. Mr. L indquist, w ho has been ad v er tisin g and publicity officer and p erso n nel d irecto r of th e bank, w ill also con tin u e in his p re se n t capacities. Follow ing g rad u atio n from th e U n iv ersity of M ichigan in 1923 he served as ad v ertis ing m an ag er of a b an k in G rand R ap ids, M ichigan, and la te r as vice p resi d e n t of T. H a rris Sm ith Associates, IOWA NEWS •- J a n u a ry 1, 1945. H e has been a vice p resid en t of M anufacturers T ru st Com p any for some years, in charge of its office at F ifth A venue and 43rd Street, and also had general supervision of its M idtown offices. Treasurer Resigns H. J. Lofgren, tre a su re r of the N a tional S urety C orporation, has re signed, to become financial executive of Wm. B. Joyce & Sons, a fam ily in v estm en t firm of the Joyce fam ily now tra n sactin g no public business. Mr. L ofgren w as associated in the financial division of th e old N ational S urety Com pany for m ore th a n 25 years, du rin g th e tim e Mr. Joyce headed th a t com pany, and took an ac tive p a rt w ith Mr. Joyce in its unique and successful reorganization. Semi-annual Dividend The board of directors of th e City N ational B ank and T ru st Com pany of Chicago at th e ir last m eeting of 1944 continued th e ir policy of th e p ast few years of declaring a sem i-annual divi- ROBERT LIN D Q U IST Assistant Vice President Philadelphia, u n til com ing to th e A m er ican N ational in 1937. He w as recen tly elected th ird vice p resid en t of th e F i nancial A dvertisers A ssociation and is a m em ber of th e 1945 class of The G rad u ate School of B anking. Elected Director H en ry C. Von Elm , vice ch airm an of M an u factu rers T ru st Com pany, New York, announces th a t at a recen t m eet ing of th e board of d irectors of the com pany, Jo h n T. M adden w as elected a director. Mr. M adden becam e p resid en t of th e E m ig ra n t In d u stria l Savings B ank on N ationally known as “W isconsin’s bank for banks, the First W isconsin serves as M ilwaukee depositary for more than 85 per cent of all the banks in this state. This very fact often enables the First W isconsin to offer unusually broad and helpful correspondent service that goes far beyond the limits of mere routine efficiency. BANKS and BANKERS DIVISION: George T. Campbell... V ice -P re sid en t Richard J. Lawless, Donald A. Harper . . . A ssista n t V ice -P re sid en ts Member of the Federal Deposit insurance Corporation OUR 50th Y EAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FIRST WISCONSIN NATIONAL BANK OF MILWAUKEE Northwestern Banker January 1945 76 —• dend of $2 p er share, of w hich $1 w ill be paid on F e b ru a ry 1, 1945, to stockholders of record as of J a n u a ry 20, 1945, and $1 on May 1, 1945, to stockholders of record as of A pril 20, 1945. The directors also declared an ex tra and additional dividend of $2 per sh are to be paid M arch 10, 1945, to stockholders of record as of Ja n u a ry 20, 1945. NE WS *- Six-point Program Announced E ach of 4,000 co u n try banks w ill have available for use d u rin g 1945 an accurate analysis of its ow n operating costs and a yard stick by w hich it can m easure and im prove efficiency in its v arious departm ents, according to K. J. McDonald, chairm an of th e Commis sion on C ountry B ank O perations of the A m erican B ankers Association. Mr. McDonald, w ho is also p resid en t of th e Iow a T ru st and Savings Bank, E sth erville, Iowa, said this inform ation “Mama, how do you get th e cubic con ten ts of a b a rre l? ” “I don’t know. Ask y o u r fa th e r.” STATEMENT IOWA OF CONDITION MERCANTILE-COMMERCE BANK AND TRUST CO M PA N Y L o c u s t - E ig h t h - S t . C harles ST. L O U IS, M ISSO U R I DECEMBER 30, 1944 Surplus Increased ☆ THE RESOURCES Cash and Due from Banks________$76,265,719.99 U nited States Governm ent O bligations di rect and guaranteed (inch $69,845,903.51 pledged*).------ ----------------177,037,629.23 O ther Bonds and Securities_______ 26,928,002.38 Demand and Tim e Loans_________ 54,295,586.95 Stock in Federal Reserve Bank in St. Louis. 420,000.00 Real Estate (Company’s Building)__ 2,790,536.40 O ther Real Estate (Former Bank o f Commerce B uildings)-------------------------------- 1,500,000.00 O verdrafts----------------------------------5,303.95 C u sto m e rs’ L ia b ility on Acceptances and Letters o f C re d it----------------------- 1,558,338.88 O ther R esources_________________ 5 1,623.46 $340,852,741.24 THE LIABILITIES Capital S to ck ____________________ $10,000,000.00 S urplus--------------------------------------- 4,000,000.00 Undivided P rofits________________ 5,411,625.56 Reserve for Dividend D eclared____ 175,000.00 Reserve for Interest, Taxes, e t c .___ 1,043,221.07 Unpaid D iv id e n d s_______________ 3,703.55 Bank’s Liability on Acceptances and Letters o f C r e d it------ ------------------------------------- 1,558,338.88 O ther L iabilities_________________ 57,350.96 Deposits, Secured: U .S.W arLoan $ 51,724,635.39 Other Public Funds_______ 9,869,831.24 $ 61,594,466.63 Other Deposits: Demand_______ $213,960,832.18 S a v in g s___________________________ 42,912,778.38 T im e ----------135,424.03 $257,009,034.59 $318,603,501.22 $340,852,741.24 * A ll securities pledged are to the U. S. Government or its Agents, State o f Missouri and the City o f St. Louis, to secure deposit and fiduciary obligations. ME MB E R Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL DEPOSIT January 19't5 w ill be supplied to th e banks as a re su lt of th e nationw ide cost analysis p roject u n d ertak en by th e com m ission as a service w ith o u t charge to th e coun try b ank m em bers of th e association w ith resources of $5,000,000 or less. The cost analysis is a m ajor featu re of th e com m ission’s six-point p rogram de signed to aid th e n atio n ’s 11,000 coun try banks. F o u r tho u san d co untry banks have re tu rn e d w ork sheets in an sw er to q u estionnaires m ailed to them by th e com m ission as th e first step in th e cost analysis. Mr. McDonald stated th a t final form s on w hich banks w ill re p o rt year-end figures, covering every phase of co u n try b an k operations from loans and inv estm en ts to auction sales and ratio n banking, w ere to be m ailed from A.B.A. h ead q u arters sh o rtly a f t e r C hristm as. W hen all form s have been retu rn ed , th e com m ission w ill v erify th e rep o rts and th en proceed to com pute, in te rp re t and rep o rt on th e o perating costs of each bank. INSURANCE CORPORATION The board of directors of th e F irs t N ational B ank in St. Louis voted addi tional com pensation to em ployes in service p rio r to Ja n u a ry 1, 1944, equiva len t to one-half m o n th ’s salary, and ad ju sted am ounts for others. T his is on th e sam e basis as in previous years. The directors declared a dividend of $1 p er share, 60 cents of w hich is an ex tra dividend payable D ecem ber 22nd to stockholders of record D ecem ber 16th, and 40 cents payable F e b ru a ry 28, 1945, to stockholders of record F eb ru a ry 21st. The dividend declared is th e sam e as last year. Also authorized w as th e tra n sfe r of $700,000 from u n d i vided profits to surplus, b ringing total su rp lu s to $6,500,000. Becomes Partner S tephen Y. H ord becam e a general p a rtn e r in B row n B rothers H arrim an & Com pany on Ja n u a ry 1, 1945, accord ing to an announcem ent at the firm ’s principal office in New York. Mr. H ord has been th e m anager of th e Chicago office for several years. He has general supervision over th e firm ’s b anking relationships in the m iddle w est and, likewise, over its inv estm en t counsel business and extensive b ro k e r age connections in th is area. Mr. H ord is a d irector of th e ClearBank teller w ith a s s is ta n t c a sh ie r e x p erien ce in c o u n try b an k s, w a n ts po sitio n as c a sh ie r o r a s s is ta n t in sm all tow n bank. W rite A D K c /o N o rth w e ste rn B an k e r, 527 7 th S t., Des M oines, Iow a. OUR 50th Y EAR 77 • ing M achine C orporation and th e Chi cago T u n n el Com pany. He is also tre a s u re r of th e Chicago Council on F oreig n R elations, a directo r of P assa v a n t H ospital, and u n til recen tly ch a ir m an of th e Chicago Council Boy Scouts of A m erica. The oldest and larg est p riv ate b a n k ing p a rtn e rsh ip in th e U nited States, B row n B ro th ers H a rrim a n & C om pany celebrated th e 125th a n n iv e rsa ry of its founding in October of last year. IOWA NEWS * changed at $90,000,000 and $170,000,000, respectively, and undivided profits at $42,222,570.91 com pare w ith $38,432,083.36, at the tim e of th e last published statem ent, Septem ber 30, 1944, and w ith $31,391,853.78 on D ecem ber 31, 1943. M E M B E R OF R E S E R V E M u st B e C areful Sm ith: W here I come from we tre a t th e help like th e family. Jones: Well, here we have to tre a t th em w ith respect if we w an t th em to stay. F E D E R A L S Y S T E M ME M B E R OF N E W YORK C L E A R IN G HOUSE ASSOCIATION With Evanston Bank George W illiam s, form er Iow a b a n k er, and for th e p ast several y ears p resi d en t of th e S tate B ank & T ru s t Com pany, E v an sto n , Illinois, announces th a t as of J a n u a ry 2, 1945, E ugene L. Voss becam e associated w ith th e The CONTINENTAL B A N K & T R U S T C O M P A N Y o f NEW YORK S ta tem en t o f C on d ition Close of Business December 81, 1944 R E S O U R C E S C a s h a n d D u e f r o m B a n k s ..................................................... U . S. G o v e r n m e n t O b l i g a t i o n s .............................................. M u n ic ip a l B o n d s . .................................................................... C o rp o ra te B o n d s ............................................................................ F e d e r a l R e s e r v e B a n k S t o c k .............................................. L o a n s a n d D i s c o u n t s .................................................................... A c c r u e d I n t e r e s t R e c e i v a b l e ............................................... C u s to m e r s ’ L ia b ility U n d e r A c c e p ta n c e s O u ts ta n d in g O t h e r A s s e t s ........................................................................................... 34,798,793.57 61,376,347.44 1 4,107,506.50 2,977,965.37 240,000.00 62,766 ,4 6 0 .3 4 583,052.98 383,197.16 45,101.16 $ 1 7 7,278,424.52 L I A B I L I T I E S C a p i t a l S t o c k ...................................................................$ 4 ,0 00,000.00 S u rp lu s F u n d ..................................................... 4,500,000.00 U n d i v i d e d P r o f i t s ..................................................... 1 ,289,436.33 $9,789,436.33 80,000.00 715,175.96 D i v i d e n d P a y a b l e , J a n u a r y 1, 1945 ■O ther L i a b i l i t i e s .............................. A c c e p ta n c e s : O u ts ta n d in g ............................... L e s s A m o u n t in P o r tf o lio D e p o s i t s ..................................................... $1,481,379.93 1,012,939.11 468,440.82 1 6 6 ,225,371.41 $ 1 7 7,278,424,52 S e c u r i t i e s c a r r i e d a t $ 3 4,251,820.09 in t h e a b o v e s t a t e m e n t a r e p l e d g e d to q u a lif y f o r fid u c ia ry p o w e rs , to s e c u r e p u b lic m o n ie s a s r e q u ir e d b y l a w , i n c l u d i n g $3 3 ,0 7 9 ,9 7 4 .9 8 o f U n i t e d S t a t e s G o v e r n m e n t W a r L o a n D e p o s its , a n d f o r o th e r p u rp o s e s . EUG ENE L. VOSS Evanston Vice President Main Office: 30 Broad Street, New York Branch O ffices: 3 4 5 M a d is o n A v e n u e - 5 1 2 M E M B E R F E D E R A L D E P O S IT E v an sto n in stitu tio n as a vice p resi dent. Mr. Voss w as fo rm erly vice p resid en t of th e C ontinenal N ational B ank, New Y ork City, and resided in W innetka, Illinois, from w hich po in t he trav eled and directed th e m iddlew estern activi ties of th e New York bank. Guaranty Trust S tatem en t of condition of the G uar a n ty T ru st C om pany of New York show s to tal resources, deposits and U. S. g o v ern m en t obligations at th e ir hig h est points in th e com pany’s h is tory. The previous high m ark s w ere rep o rted Ju n e 30, 1944, w h en resources to taled $3,601,236,269.04, deposits w ere $3,190,800,362.23, and holdings of U. S. go v ern m en t obligations w ere $2,178,737,312.79. C apital and su rp lu s rem ain u n OUR 50th Y EAR https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Seventh Avenue IN S U R A N C E C O R P O R A T IO N F a r m e r s S ta te S a v in g s B a n k INDEPENDENCE, IOWA Statement of Condition December 30, 1944 RESOU RCES C ash a n d D u e fro m B a n k s .................................................................... L o a n s a n d D is c o u n ts ............ .. ................................................................ F i r s t R ea! E s ta te m o rtg a g e s .............................................................. U. S. G o v e rn m e n t B o n d s . ................................................................. M u n icip al S e c u ritie s ............................................................................. F u r n itu r e a n d F i x tu r e s .......................................................................... O v e rd rafts .................................................................................................... $ 1 , 0 3 9 ,9 5 1 . 1 0 5 4 9 , 7 7 3 .3 5 3 3 7 , 4 6 6 .5 2 3 , 0 5 6 ,5 7 4 . 0 9 1 4 5 , 3 9 7 .2 9 2 ,7 4 7 .5 9 4 4 2 .1 7 $ 5 ,1 3 2 ,3 5 2 . 1 1 L IA B IL IT IE S C a p ita l S to ck ( C o m m o n ) .................................................................... S u rp lu s ........................................................................................................... U ndiv id ed P ro fits . .......................................................................... D ep o sits ....................................................................................................... $ 100,000.00 100,000.00 3 8 ,4 4 5 .1 1 4 , 8 9 3 ,9 0 7 . 0 0 $ 5 , 1 3 2 ,3 5 2 . 1 1 O F F IC E R S E. E. Everett, Vice President E. F. Sorg, President P. E. Sorg, Assistant Cashier O. L. Feister, Cashier Member Federal Deposit Insurance Corporation Northwestern Banker January 19h5 Experience Service Cooperation M anned by officials w ith years of ex p erien ce, o u r C o rre sp o n d en t B ank D iv isio n re n d ers a co m p lete service, c o n d u cte d in an in tim a te and p erso n aliz ed m anner. T h e g u id in g policy is o n e of co o p eratio n in all m a tte rs of m u tu al in terest. ÍUlicNational BANK. A N D CO M PA N Y TRU ST OF NEW YORK ESTABLISHED I V 1908 M e Member: New York Clearing Horn Association, Federal Deposit Insurance Corporation/ NEW S F re d ’s son, Jim N. Staker, is an ensign in th e N avy and pilots a T.B.F., w hich is th e torpedo bom ber plane of th e Navy, and is ca rrie r based. Jim is som ew here in th e South Pacific and w as a sophom ore at th e U n iversity of K ansas w hen he joined th e Navy. He is 21 y ears of age and is as handsom e as an y H ollywood sta r th a t you ever saw. , H al Y. Lem on, vice president, N a tional B ank of D etroit, w as in St. Joe, M issouri, ju s t before th e holidays renew ing old acquaintances and look ing a fter some of his personal b u si ness affairs. St. Joe w as H al’s hom e tow n. F razer L. Ford, presid en t of th e “1st B an k s” of St. Joe, is one of th e first m em bers of his organization to a rriv e a t th e F irs t N ational B ank in th e m orning, as he reaches th e re about 7:45 A. M. U nder his able m anage m ent, these in stitu tio n s have m ade ex cellent progress and th e deposits of th e “F irs t B anks” are now over $40,000,000. Statement of the IOWA STATE BANK & TRUST COMPANY Iowa City, Iowa December 30, 1944 RESOURCES Cash and Due from Banks.......................................................... $2,241,148.16 U. S. Bonds....................................................................................... 3,443,935.00 Other Bonds and Securities.......................................................... 121,224.34 CASH OR ITS E Q U IV A L E N T ........................................................T .................... $5,806,307.50 Loans and Discounts............................................................................................... 1,956,435.61 Overdrafts ................................................................................................................... 174.65 Banking House ......................................................................................................... 53,300.00 Furniture and Fixtures ................................................. 16,000.00 $7,832,217.76 L IA BILITIES Capital Stock ................................................................................................................... $ 150,000.00 Surplus and Undivided Profits...................................................................................... 121,601.64 DeP°sits ............................................................................................................................... 7,560,616.12 $7,832,217.76 DIRECTORS Dr. E. M. MacE w e n R . J. B a sc h n a g e l M. B . G u t h r i e George A . T h o m p so 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 i l l * Serving in the Armed Forces of the U. S. MEMBER FEDERAL DEPO SIT INSURANCE CORPORATION Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 V IEW S (C ontinued from page 22) O pened for Business October 15, 1934 OFFICERS B en S. S u m m e r w i l l , President D r . E. M. M a c E w e n , Vice President. *W. W. S u m m e r w i l l , Vice President M. B. G u t h r i e , Cashier W. F . S c h m i d t , Ass’t Cashier M. E. T a y l o r , Auditor AND George E. Porter, vice president, F irst N ational B ank of St. Joe, in vited us to have lunch w ith him and his beautiful and charm ing wife, Mrs. Porter, at th e B enton Club. T his Club is com posed of about 60 m em bers and is one of th e oldest clubs in St. Joe. Mrs. P o rte r is th e d au g h ter of Graham Lacy, one of th e founders of th e Tootle-Lacy N ational Bank. Mr. and Mrs. P o rte r have tw o sons and a son-in-law in th e Service and these include Lt. Graham P orter w ho is now tak in g post g rad u ate w ork at A nnapolis; Capt. George E. Porter, Jr., w ho w as in th e In fa n try and has been a p riso n er on B ataan for th ree years, and Lt. Col. Robert R. Clark II, w ho is in G erm any w ith th e 104th D ivision of th e 1st A rm y. L ieu ten an t Clark m arried E llen P orter and th ey have tw o children, who, w ith th e ir m other, are m aking th e ir hom e at the P o rte r residence. Ray R. Calkins, presid en t of the A m erican N ational B ank of St. Joe, and Mrs. C alkins enjoyed a pre-holi day visit to New Y ork City, w here th ey saw th e latest show s and a t tended th e Opera. Ray also checked up on th e W all S treet ban k ers ju s t to see how th ey w ere gettin g along. George U. R ichm ond, vice p resident of th e A m erican N ational Bank, St. Joe, has tw o sons in th e service w ho are 1st Lt. George U. R ichm ond, Jr., w ho w as w ounded in th e b attle at Saipan, and w as in th e hospital a t Springfield, M issouri, and has been re leased for a period of inactive service; and Lt. (jg) Charles K. R ichm ond, w ho has already had one and a half y ears of service on a d estroyer in the South Pacific. Thos. J. M cCullough, cashier of th e F irs t St. Joseph Stock Y ards Bank, is kep t p re tty busy these days as h e is on th e ratio n in g board for his dis trict, and nobody gets a q u a rt or a gallon w ith o u t his perm ission, and we are re fe rrin g to gasoline. B yron D unn, executive vice p resi den t of th e N ational B ank of Com m erce, Lincoln, N ebraska, in a le tte r to th e N o r t h w e s t e r n B a n k e r , told us of th e ir special stockholders m eeting, w here th ey voted to increase th e ir capital stock by a dividend of $150,000, w hich increases th e capital of th e b ank from $350,000 to $500,000. The su rp lu s account w as increased from $400,000 to $500,000 and in addition to this, th e OUR 50th YEAR 79 — • IOWA b an k has a reserv e account of $500,000 an d undivided profits of about $100,000. T he b an k sta rte d A ugust 4, 1902, w ith a capital of $50,000. The p resen t official staff is as follows: M. W eil, president; B yron D unn, executive vice president; A lb ert A. H eld, E rn est C. F olsom , Ju liu s W eil, vice presidents; Paul B ogott, cashier, and Glenn Yaussi, a ssista n t cashier and a ssista n t tr u s t officer. M ilton T ootle III, vice p resid en t of th e Tootle-Lacy N ational B ank of St. Joe, M issouri, told us th a t he is still fol low ing his “S ystem atic P lan for the NEWS • - econom ists and business m en a fte r th e first W orld W ar forgot th a t a g ri cu ltu re is the tru e foundation of our n ational economy, th e re are already signs th a t th e y m ay rep eat th is e rro r a fte r th e c u rre n t w ar. He says, “Cer ta in ly th e city people w ho should be m ost actively concerned about th e source of th e ir prosperity, or th e lack of it, are th e chief fo rg etters.” m edal for an o u tstanding contribution in connection w ith m ilitary operations in w hich his organization w as engaged. M ajor Miles also w ears cam paign sta rs in his E u ro p ean th e a tre ribbon for th re e m ajor airborne invasions in N orm andy, so u th ern F ran ce and H ol land, as w ell as th e presidential u n it citation ribbon for action in th e D-day invasion of C herbourg. Major M iles M. M ills of Des Moines, son of C harles B. M ills, of Moline, 111., has been aw arded th e bronze sta r Kay A. Ilg, vice presid en t of th e N ational S haw m ut B ank of Boston, is also chairm an of th e Publicity purchase of G overnm ent S ecu rities,” as o u tlined in th e F e b ru a ry 1943 issue of th e N o r t h w e s t e r n B a n k e r . O ther b an k ers have follow ed Mr. T ootle’s pro g ram and th e m ost recen t one to do so is A. J. M artin, vice p resid en t of th e F irs t N ational B ank of H ouston, Texas. M ilt’s plan is based on “The p e rm a n e n t revolving fu n d ,” a fte r de ciding th e am o u n t w hich shall be placed in th is fund. It is an excellent idea for any b an k to follow. The First N a t io n a l B a n k o f C h ic a g o Statement of Condition December 31, 1944 T he N o r t h w e s t e r n B a n k e r w as h a p py to receive a v ery novel C hristm as greetin g from Captain Leo Mak, wellknow n Iow a bond and in v estm en t dealer w ho is w ith th e h e a d q u a rte rs of th e 12th Bomb Group, U nited States A rm y A ir F orce in India. In line w ith its m an y progressive ideas for th e b e tte rm e n t of agricu l tu re, th e F a rm e rs N ational Com pany of Om aha is responsible for th e a t tractiv e electrotype below co ntaining -=~ **\^en Tillage Begins, = O ther A rts Follow^ th e slogan by D aniel W ebster, “W hen tillage begins, o th er a rts follow ,” for use in v ario u s publications and cir culars w hich m ay be g o tten out by vario u s ty p es of business. C ornelius J. C laassen, p resid en t of th e F a rm e rs N ational Com pany, says th a t w hile DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION O ldest In Des M oines 411 6th Ave. ELMER E. MILLER Pres, and Sec. Dial 4-7119 HUBERT E. JAMES Asst. Sec. FOR YOUR ENJOYMENT . . . Listen to the “WORLD OF MUSIC” KRNT, 1350 KC 10:30-11 a. m. Sundays OUR 50th Y EA R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A S SETS Cash and Due from B an k s,..............................................$ 436,577,283.75 United States Obligations—Direct and fully Guaranteed, Unpledged, . . . . $668,441,361.49 Pledged—To Secure Public Deposits and Deposits Subject to Federal Court Order, 512,268,031.51 To Secure Trust Deposits, . . 34,322,146.74 Under Trust Act of Illinois, . . 534,174-48 1,215,565,714.22 Other Bonds and S e c u r i t i e s , ..................................... 96,720,150.67 Loans and D iscou n ts,...................................................... 455,767,737.70 Real Estate (Bank B u i l d i n g ) , ..................................... 3,746,905.33 Federal Reserve Bank S t o c k , .................................... 3,000,000.00 Customers’ Liability Account of Acceptances, . . 1,334,842.54 Interest Earned, not C o lle c t e d ,.................................... 4,955,943.01 Other Assets.......................................................................... 252,629.02 $2,217,921,206.24 LIABILITIES Capital S t o c k , ...................................................... $ 50,000,000.00 Surplus, . ...................................................... 50,000,000.00 Other Undivided P r o f i t s , .................................... 3,845,378.43 Discount Collected, but not Earned, . « 638,571.12 Dividends Declared, but Unpaid, . . . 1,000,000.00 Reserve for Taxes, e t c . , .................................... 8,443,361.99 Liability Account of Acceptances, 1,364,148.08 Time Deposits, . . . . $ 246,838,256.' Demand Deposits, . . . 1,311,804,115. Deposits of Public Funds, . . 543,979,261.60 2,102,621,633.52 Liabilities other than those above stated, . . . ________ 8,113.10 $2,217,921,206.24 MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION Northwestern Banker January 19k5 80 —• Com m ittee of th e M assachusetts B ank ers A ssociation, and in a recen t le tte r to th e N o r t h w e s t e r n B a n k e r he told us of th e plan w hich th e M assachu setts C learing H ouse B anks have p u t into effect to assu re cred it for sm all business in th e p o stw ar period. In his le tte r to us, he said, “W hile th is plan does n o t call for th e form ation of a big pool, it is our in te n tio n to reach th e sam e goal as expressed in th e pro g ram recen tly adopted by th e P o stw ar Sm all B usiness C redit Com m ission of th e A m erican B an k ers’ A ssociation and in full cooperation IOWA NEWS •- w ith them —to seek actively to help those w ho m ay need loans. “T his action by th e Boston Clearing H ouse A ssociation and th e M assachu setts B ankers A ssociation places Bos to n and M assachusetts w ith the other cities and states w hich have already fo rm u lated definite plans for a ssu r ing business all possible consideration for b an k credit in th e reconversion and p ostw ar periods.” W illiam B. Bauer, only son of E arl Bauer, a ssistan t vice p resid en t of Com m erce T ru st Company, K ansas City, M issouri, and Mrs. Bauer, w as killed in a plane crash a t E l Toro Field, Cali fornia, last m onth. W illiam B auer w as a fighter pilot in th e M arine A ir Corps. H is plane had been grounded for rep airs an d B auer had later tak en it up for a test. A t 500 feet th e m otor failed and he attem p ted to m ake a crash landing b u t in descent it w as necessary to b an k aro u n d a grove of eucalyptus trees. In doing so his w ing stru ck a tele phone pole resu ltin g in a w reck w hich fired th e plane and B auer w as b u rn ed to death. At th e tim e of en listm en t in th e fall of 1942, he w as a sophom ore a t th e U n iv ersity of K ansas. He w as a P hi D elta Theta. E a rl B auer is one of th e best know n b an k ers th ro u g h o u t th e Southw est, especially in the state of K ansas. Announce Promotions T R U ST COM PANY Founded 1824 165 Broadway, New York CONDENSED STATEM ENT OF C O N D IT IO N At the close of business, December 3 1 , 1944 ASSETS .$252,018,057.00 C ash and D ue from Banks_______ U. S. G overnm ent O bligations, D irect and Fully G uaranteed_____ 836,557 275.32 Bankers’ A cceptances and Call Loans 77,035 291.14 74,058 ,514.92 State and M unicipal Bonds___________ 53,888, 496.74 O th er Bonds and Investm ents________ Loans and D iscounts________________ 198,159 ,376.05 359 ,793.50* Banking H o u ses------------------------------1,846 206.66* O th er Real Estate___________________ 351 835.54 Mortgages__________________________ 2,534 660.83 Credits G ranted on Acceptances----------A ccrued Interest and Accounts 3,772,993.97 Receivable______________________ 254,253.67 O th er Assets_______________________ $1,500,836,755.34 At th e an n u al m eeting of th e IowaDes Moines N ational B ank & T ru st Company, H erb ert L. H orton, p resi dent, announced th e prom otion of L aird M. F re y e r from assistan t cashier to a ssistan t vice p resid en t and th e elec tion of Gerald O. N elson to th e position of assistan t cashier. Mr. F rey er, m ortgage loan d e p a rt m en t officer, has been w ith th e b an k over 20 y ears and has been assistan t cashier since 1930. Mr. N elson’s prom otion follows 18 y e a rs’ experience in m any dep artm en ts of th e bank. F o r th e p ast th ree y ears he has been connected w ith the in sta ll m ent loan departm ent. All o ther directors and officers w ere re-elected. T otal deposits of th e b ank now are $99,553,116. LIABILITIES C apital Stock. Surplus. U ndivided Profits_____ U nallocated Reserves— $20,000,000.00 60,000,000.00 10,598,346.37 4,159,560.38 $94,757,906.75 2,599,805.25 Reserves for Taxes, Expenses, etc.900,000.00 D ividend Payable Jan. 2, 1945 Acceptances O utstanding $3,883,351.56 (Less own acceptances 3,537,294.86 held, in portfolio) 346,056.70 288,161.84 O th er Liabilities-------------------------------Deposits (including Official and Certified Checks Outstanding $2 4 ,9 7 7 ,4 4 9 .5 3 ) 1,398,753,586.64 $1,500,836,755.34 Securities carried at $3 5 4 ,4 78 ,328 .60 in the foregoing statement are deposited to secure public funds and for other purposes required by law. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January Í9h5 New Vice Presidents David T. Beals, p resid en t of th e Inter-S tate N ational Bank, announces the election of C harles H. G riesa and Olney D. N ew m an as vice presid en ts of th e In ter-S tate N ational Bank. Mr. G riesa comes to th e Inter-S tate from th e U nion N ational B ank in K ansas City. H e originally came from Law rence, K ansas, w here he attended th e public schools and th e U n iv ersity of K ansas. D uring W orld W ar I he w en t to F ran ce to serve w ith th e F ren ch arm y in 1916. Follow ing th e en tran ce of th e U nited States in th e w ar he joined our forces as an in fa n try officer attached to th e 356th In fa n try of th e 89th Division. A fter th e A rm istice and a to u r of d u ty in the A rm y of Occupation in G erm any, he w as as signed to th e A m erican Relief AdminOUK 50th Y EA R 81 • I O W A N E W S * K ansas, has resigned as p resid en t of th e G arden N ational Bank, a b an k he established in 1934, com ing to G arden City from Coats, K ansas. H e is w ell know n th ro u g h o u t th e m iddle w est as w ell as in K ansas, as an ou tstan d in g b an k executive. In 1940 h e w as p resi d e n t of th e K ansas B ankers Associa tion, and is now a m em ber of th e executive council of th e A m erican B an kers A ssociation. As p resid en t of th e G arden N ational B ank, Mr. N ew m an has alw ays been a booster for w estern K ansas farm ers and live stock feeders, as w ell as civic and public im provem ent affairs. D eposits of th e In ter-S tate N ational B ank, according to th e ir 1944 year-end statem ent, are $69,514,506.00. CONDENSED CHARLES H. GRIESA Prominent in civic affairs istra tio n u n d e r H erb ert H oover in A ustria and Czechoslovakia. Mr. G riesa has been engaged in th e ban k in g business since 1920, and asso ciated w ith th e U nion N ational B ank since its organization in 1933. He has tak en a p ro m in en t p a rt in civic affairs of K ansas City, and is w idely know n in b an k in g circles. Olney D. N ew m an of G arden City, Excess of Two Billions The statem en t of condition of M anu factu rers T ru st Company, New York, as of D ecem ber 31, 1944, shows deposits of $1,991,382,142, w hich include U nited States G overnm ent W ar L oan depos its of $300,866,524. On D ecem ber 31, 1943, deposits w e r e $1,580,909,261, w hich included U nited States G overn m en t W ar L oan deposits of $133,098,432. Resources on D ecem ber 31, 1944, w ere $2,100,298,087, as com pared w ith $1,682,356,909 a year ago. This is the first tim e th a t M anufacturers T ru st Com pany has show n resources in ex cess of two billion dollars in a pub lished statem ent. Cash and due from banks is listed at $445,668,127, as against $401,956,453 STATEMENT 1RST N A TIONA L BAN IN ST. LOUIS A t the Close of Business, December 30, 1944 RESOURCES Cash and D ue from Banks U. S. G overnm ent Securities Loans and D iscounts O ther Bonds and Stocks Stock in Federal Reserve B ank Banking House, Im provem ents, F urniture and Fixtures O ther Real E sta te Owned C ustom ers’ Liability a /c L etters of Credit, Acceptances, etc. Accrued In terest Receivable O verdrafts O ther Resources $107,858,488.16 253,470,128.81 88,038,119.65 5,964,694.02 501,000.00 397,835.15 1,100,006.00 838,232.56 1,046,613.93 10,156.39 _______4,384.42 $459,229,659.09 LIA B ILIT IES $ 10,200,000.00 C apital Stock 6,500,000.00 Surplus 6,180,405.55 Undivided Profits 500.000. 00 Reserve for Contingencies 240.000. 00 D ividend D eclared P ayable February 28, 1945 1,283,372.94 Reserve for Taxes, In terest, etc. 92,596.70 Unearned D iscount 841,674.01 Liability a /c L etters of Credit, Acceptances, etc. 29,083.02 O ther Liabilities $202,437,673.40 Individual Deposits 41,901,286.31 Savings Deposits 125,377,405.22 B ank D eposits 58,622,871.70 U. S. G overnm ent Deposits C ity of St. Louis and O ther 5,023,290.24 Public Funds 433,362,526.87 T otal D eposits $459,229,659.09 OLNEY D. NEWMAN Comes from Garden City, Kansas O U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 19b5 82 - • tw elve m onths ago. U nited States G overnm ent Securities stan d at $1,205,104,026; a y e a r ago th e y w ere $887,436,948. Loans, bills p u rch ased and b a n k e rs’ acceptances are now $367,338,389 w hich com pare w ith $298,950,311 on D ecem ber 31, 1943. P re fe rre d stock is show n as $8,009,920, com m on as $32,998,440, su rp lu s as $33,000',000, and u n divided profits as $19,604,010. Chemical, New York In its sta te m e n t for D ecem ber 31, th e Chem ical B ank & T ru st Com pany IOWA NEWS • - rep o rted deposits of $1,398,753,587, com pared w ith $1,153,998,166, on De cem ber 31, 1943, and total assets of $1,500,836,755 com pared w ith $1,249,514,079 a y ear ago. Cash on h an d and due from banks am ounted to $252,018,057 com pared w ith $239,375,105; U. S. G overnm ent obligations to $836,557,275 against $657,728,406; b an k ers’ ac ceptances and call loans to $77,035,291 ag ain st $63,769,792 and loans and dis counts to $198,159,376 against $139,435,524. C apital rem ains unchanged at $20,- : MEMBER FEDERAL HOME LOAN BANK' STATEMENT OF CONDITION D e c e m b e r 31, 1944 HOME FEDERAL SAVING S AND LOAN ASSOCIATION Des Moines, Iowa 414 Sixth Street Officers and Directors A r th u r S. K irk D r. L a w re n c e E . K elley V ice P r e s id e n t C. B . F le tc h e r S e c re ta ry -T re a s u re r E d ith K eelin g A s s is ta n t T re a s u re r H e n r ie tta A lb rig h t A s s is ta n t S e c re ta ry H a ro ld J . H ow e C ounsel ASSETS Cash ................................................. ...............$ 274,370.47 U nited S tates W ar S avings B onds.......... 835,075.01 Stock in F ed eral Home Loan B a n k ........ 100,000.00 F irs t M ortgage L oans............................... 4,251,896.07 Repayable on monthly payment plan. L oans on Passbooks and C ertificates.— F u rn itu re and F ix tu re s..... ......................... Office B u ild in g ................. O ther A ssets.................................... These are prepaid expense items. ---------------------- $5,610,071.53 D r. M arv in J . H o u g h to n D e n tis t J o se p h N . C h a m b e rla in R eal E s ta te & In su ra n c e J . T . S c h illin g Iow a P o w er & L ig h t C o. D r. J o h n L . H illm a n P re s id e n t E m e ritu s S im p so n C ollege C a p t. J o n a th a n M . F le tc h e r In M ilita ry S erv ice L I A B I L I T I E S Savings and In v e stm e n t A ccounts........$5,298,194.57 Each account is insured up to $5,000.00. Loans in P rocess.............................. 28,534.05 New loans on which these funds have not been disbursed. O ther L iab ilities ............... 6,961.16 These are current accounts. D ividends D eclared and U n p aid.............. Wc urge your care ful analysis of this financial statement. 6,999.51 11,284.26 127,843.17 2,603.04 70,864.82 To be paid in cash on January 1, 1945, or credited on savings accounts. R eserves and U ndivided P rofits: G eneral R eserves........ ,..$101,762.85 Specific R eserves........-.... 69,764.08 U ndivided P rofits............ 33,990.00 205,516.93 PHONE 3-0555 | W e in v ite you to call a n d ta lk w ith us a b o u t s t a r ti n g a sa v in g s 1 <! account. O r w rite u s f o r o u r b ooklet e x p la in in g how to open a > ( sav in g s acco u n t by m ail. E a c h a c co u n t is in s u re d up to $5,000. ) We are headquarters fo r ( G. I.) Soldiers Loans and are in the m a rket fo r all good home loans at rates fro m 4% to 6% according to classification. We have grown $2,224,460.65 during the year 1944 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 1945 Philadelphia National The re p o rt of The P hiladelphia N a tional B ank for th e y ear ended Decem b er 30, 1944, m ade public by E v an R andolph, president, show s an increase of $2,277,017 in undivided profits for th e year, w hich com pares w ith an in crease of $1,812,018 rep orted a year ago. N et earnings from c u rre n t opera tions am ounted to $5,920,247, against $5,870,116 in 1943. A fter adding profits on securities and o ther incom e and afte r deducting taxes, th e am ount ap plied to bond account, and m iscellane ous charges, n e t incom e before divi dends am ounted to $5,777,017, com pared w ith $5,312,018 a y ear earlier. Capital, su rp lu s and undivided profits am ounted to $51,958,269, as against $49,681,252 at th e end of 1943. D uring the year th e bank increased its su rp lu s account 33 per cent from $21,000,000 to $28,000,000. In his report, Mr. R andolph stated th a t th e m ark et value of in v estm en t securities shows a su b stan tial excess over th e figures at w hich th ey are car ried on th e books of th e bank. Best Year The B ankers T ru st Company, Des Moines, rep o rts 1944 as one of the b est y ears in th e h isto ry of th e bank, ac cording to L. N evin Lee, vice president. L ast year th e B ankers T ru st Com pany increased its su rplus and undivided profits account, paid the reg u lar 4 p er cent dividend, and in addition ju st re cently declared an ex tra cash dividend of 2 p er cent to stockholders. Mr. Lee says th e B ankers T ru st Com pany antic ipates an o th er good y ear in 1945. Employes Honored $5,610,071.53 ★ 000,000 b u t su rp lu s show s an increase from $55,000,000 to $60,000,00 reflecting th e tra n sfe r on October 19, 1944, of $5,000,000 from unallocated reserves to surplus. U ndivided profits w ere $10,598,346 and show ed an increase for the year of $3,128,784 after th e u sual divi dends of $3,600,000, ($1.80 p er sh are). Two v eteran em ployes of th e M issis sippi Valley T ru st Com pany of St. Louis w ere honored recen tly for th e long and faithful years of service and w ere p resented w ith gold w atches by P resid en t Sidney M aestre. T hey are H en ry C. Ibbotson and Jo h n F. W ieser. Mr. Ibbotson began his career in ban k in g at M ississippi V alley T ru st Com pany in 1893, ju st th ree y ears after its beginning. In 1929 he w as ad vanced from a ssistan t secretary to as sista n t vice president. M uch of his banking experience has been in the O U R 5 0 th Y E A R 83 • discount d e p a rtm e n t and of recen t y ears he has been associated w ith th e exchange d ep artm en t. Mr. W ieser sta rte d a t th e S tate N a tional B ank in 1894, and w e n t w ith M ississippi V alley T ru s t C om pany as an a ssista n t se cretary at th e tim e of th e m erg er in 1929. D uring recen t y ears he, too, h as been in th e exchange d ep artm en t. M uch of his spare tim e, how ever, is sp en t at his farm outside of St. Louis, w h ere he raises som e rec ord crops. I OWA New Vice Presidents F ollow ing a m eeting of th e board of d irecto rs of th e A m erican E x p ress Com pany, R alph T. Reed, president, announced th e election of tw o new vice p resid en ts of th e com pany. B ert E. W hite, a ssista n t vice p resid en t and p as sen g er traffic m an ag er in charge of dom estic tra v e l now on w ar leave w ith th e U nited States A rm y, w as elected vice p resid en t and g eneral m anager, trav el, and W alter C. Rundle, assistan t vice p resid en t in charge of foreign tra v e l and u n til recen tly on loan to th e C oordinator of Inter-A m erican Affairs as d irection of th e T rav el Division, w as elected vice president, travel. • p ares w ith $1,058,005.05 for th e year 1943. D ividends of $540,000 w ere paid and th e balance of $589,673.26 w as added to undivided profits. The e a rn ings are equivalent to 7.36 p er cent on the average capital stock, su rp lu s and undivided profits. The board of directors last m onth authorized an increase in su rp lu s fund from $6,000,000 to $12,000,000 by a trans- American T ru st & Savings Bank DUBUQUE, IOW A Incorporated 1912 Organized 1905 STATEMENT OF CONDITION, DECEMBER 30, 1944 To Increase Capital Shareholders of B ank of A m erica w ere advised by L. M. G iannini, p re si dent, th a t because of th e ex tra o rd in a ry grow th of th e b an k th e board of d irec to rs h ad adopted a resolu tio n p ropos ing an increase in th e b a n k ’s capital stock by th e issuance of 800,000 new sh ares of com m on stock. It is u n d e r stood th a t th is w ill be th e larg est sin gle offering of new com m on stock in th e h isto ry of th e country. More th a n 140 u n d e rw rite rs and 800 dealers w ill p articip ate in th e nationw ide offering, w hich w ill to tal in excess of $40,000,000. G iannini’s com m unication to th e sh areh o ld ers pointed to a grow th of m ore th a n tw o billion dollars in depos its in less th a n th re e years, b rin g in g deposits to m ore th a n $4,000,000,000 and placing th e b an k am ong the w orld’s th re e larg est b an k in g in s titu tions. The new stock w ould in crease capital funds of th e b an k by approxim ately $40,000,000 to about $220,000,000, exclu sive of v alu atio n reserv es and a fte r giv ing effect to th e c u rre n t dividend. NE WS L IA B IL IT IE S RESO U RCES Cash a n d D u e fro m B a n k s........... $ 3 , 3 9 2 ,0 0 9 . 6 0 Capital Stock U. S. Government Bonds. . . . . . Surplus Federal Reserve Bank Stock. . . State, County and Municipal Bonds ................................. Loans and Discounts........... O v e rd ra fts................................. Bank Building ...................... 1 2 ,4 3 3 ,9 2 3 . 0 8 1 5 , 0 0 0 .0 0 6 4 3 , 3 8 8 .1 8 1 . 0 9 6 ,7 4 4 . 9 0 . . $ 2 5 0 , 0 0 0 .0 0 2 5 0 , 0 0 0 .0 0 ...... 1 3 4 ,9 7 9 .9 1 Undivided Profits Reserves .............. 6 3 , 0 0 0 .0 0 Deposits .............. 1 6 , 9 3 3 ,1 5 9 . 7 0 7 3 .8 5 5 0 , 0 0 0 .0 0 $ 1 7 , 6 3 1 ,1 3 9 . 6 1 $ 1 7 .6 3 1 ,1 3 9 . 6 1 C. J. SCHRUP, Chairman of the Board D. W. ERNST, President C. J. KLEINSCHMIDT, Cashier ROY F. GLAB, Vice President A. L. VOGL, Assistant Cashier M. J. BAUMHOVER, Assistant Cashier M em ber F ederal Reserve S ystem . Member of the Federal Deposit Insurance Corporation A THE L U X U R Y OF ILLEG IBILITY A luxury is something we like to have but without which we can exist and even be happy. Well, we can exist very well indeed without illegible signa tures on bank checks. These "scrawls of character” may be the pride of the writers but they are a headache to the youngsters who have to decipher them as they move swiftly thru the banks. Checks circulate widely and wherever they go people must read them. Those who write them should extend to those who read them the courtesy of legibility. There is hardly a person in this country who wouldn’t say "Par don me” if he inconvenienced his neighbor, but too many are sublimely unconscious of the fact that they are discourteous when they require others to waste time trying to read their names. It is assumed that people are sensitive about their signatures and that it would be undiplomatic even to sug gest that theirs are not quite up to Spencerian standards. Bunk ! A person signs his name as he does because he wants to sign it that way. He likes his signature, so let’s not disturb it. Let him continue to enjoy the luxury of illegibility BUT elsewhere on his check his name should be printed. Sooner or later all checks are cor rectly sorted, posted and filed, but what does it cost for this accuracy? How much more does it cost than it should? We wonder what the differ ence would be if all checks carried a printed name. We wonder if perhaps our Personalized Check program isn’t somewhat more important than even we thought it was. Northern Trust, Chicago T he 1944 n e t earn in g s of The N o rth e rn T ru s t Com pany, Chicago, a fte r ch arg in g off all know n losses and p ro viding for tax es and additions to re serves, are $1,129,673.26. T his comO U R 5 0 th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker January 1945 84 • fer of $3,000,000 from undivided profits and $3,000,000 from reserves. Capital stock am ounts to $3,000,000, su rp lu s funds $12,000,000, and undivided profits $3,807,868.58, a to tal of $18,807,868.58. Deposits rose to $725,188,258,89, com pared w ith $519,682,491.53 a y e a r ago, for a gain of $206,000,000. Included th e re in are U nited States g o vernm ent deposits of $206,387,388.65 and $60,939,268.89 on th e respective dates. Savings deposits increased $14,000,000, from $86,963,568.16 to a to tal of $100,817,203.63. IOWA NEWS Larger Net Earnings N et earnings of $507,525 for 1944 are rep o rted for th e A m erican N ational B ank and T ru st Com pany of Chicago by P resid en t L aw rence F. S tern in his a n n u al re p o rt to stockholders. T his figure rep resen ts n et o perating profits a fte r provisions for reserves, taxes and contingencies, and com pares w ith re p orted n et earnings of $381,344 for 1943. T otal deposits of th e A m erican N a tio n al on D ecem ber 30th am ounted to $179,318,025, a su b stan tial increase over NATIONAL BANK OF BURLINGTON BURLINGTON, IOWA Statement of Condition, December 30. 1944 ASSETS L I A B IL I T I E S C ash a n d D ue from B a n k s ............... $ 2 , 5 5 1 ,7 5 5 . 4 7 U. S. G o v e rn m e n t S e c u r itie s ............ 4 , 3 3 2 ,8 6 8 . 2 0 S ta te , C o u n ty a n d M u n ic ip a l B o n d s 1 , 3 1 2 ,1 5 0 . 1 2 O th e r B o n d s ............................................ 4 3 2 , 7 7 7 .3 7 L o a n s a n d D is c o u n ts .................... 1 , 1 4 7 ,2 3 0 . 7 7 O v e r d r a f t s ................................................... 1 4 8 .1 7 S to c k in F e d e ra l Reserve B a n k . . . 1 0 , 5 0 0 .0 0 B a n k B u i l d i n g ......................................... 4 0 , 8 9 6 .0 0 F u r n itu r e a n d F i x t u r e s ........................ 7 ,2 3 3 .4 8 O th e r A s s e t s ............................................ 1 , 2 3 8 .1 6 C a p ita l ........................................................ $ 2 0 0 , 0 0 0 .0 0 S u r p l u s ............................................ U n d iv id ed P ro fits R eserve fo r T a x e s, 1 5 0 , 0 0 0 .0 0 ............................ 7 8 , 4 6 3 .3 6 e tc ......................... 3 0 , 0 0 0 .0 0 I n te r e s t C o llected b u t n o t E a r n e d . D e p o sits ..................................................... 1 , 3 8 2 .1 0 9 , 3 7 6 ,9 5 2 . 2 8 $ 9 , 8 3 6 ,7 9 7 . 7 4 Thomas L. Dyer, Cashier. P. J. Norton, E. L. Hausknecht, Asst. Cashiers. M em ber F e d e ra l D e p o sit In su ra n c e C o rp o ratio n Federal Home Loan Bank of Des Moines DES MOINES, IOWA STATEMENT OF CONDITION, DECEMBER 31, 1944 RESOURCES Cash ......................................................................................................................................... $ 970,681.38 U. S. Government Obligations and Securities fully guaranteed by U. S......... 10,249,964.43 Advances to Members ....................................................................................... 11,785,358.25 Accrued Interest Receivable............................................................................................... 70,109.12 Deferred Charges and Other Assets.................................................................................. 2,678.23 Furniture and Equipment (Cost $10,361.06).................................................................. 1.00 $23,078,792.41 LIABILITIES AND CAPITAL Deposits—Members ..............................................................................................................$ J, 660,923.08 Deposits—Other Federal Home Loan Banks.................................................................. 1, 500,000.00 Accrued Interest Payable................................................................................................... 24,482.36 Accounts Payable ................................................................................................................. 973.06 Dividends Payable—January 4, 1945............................................................................... 57,971.60 ^Debentures Outstanding ..................................................................................................... 7 , 000,000.00 Capital Stock Subscriptions.................. ............................................................................ 1 1 , 677,600.00 Surplus : Reserves ......................................................................................................... $795,600.63 Undivided Profits ........................................................................................ 361,241.68 1. 156,842.31 $23,078,792.41 ^Participation in $66,500,000 Consolidated Federal Home Loan Bank Debentures outstanding, which are the joint and several obligations of the twelve Federal Home Loan Banks. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis January 19J5 th e 1943 year-end to tal of $140,538,092. P resid en t S tern pointed out in his re p o rt th at, because th e Sixth W ar Loan had been so recently com pleted, depos its in th e T re a su ry ’s w ar loan account w ere at a high point at th e close of th e year. The year-end statem en t show s U. S. governm ent deposits of $22,764,837, com pared w ith $8,154,107 a t the close of 1943. He added th is com m ent: “E xperience has show n th a t as such funds are disbursed in p aym ent of w ar costs, th e b ulk of th em find th e ir w ay back into th e banks in deposits of o th er form s. I t m ay th erefo re be expected th a t bank deposits w ill continue to in crease in th e com ing y ear.” Capital and Surplus Increased T he capital and su rp lu s of M issis sippi V alley T ru st Company, St. Louis, is now $10,000,000. T his change w as effective on D ecem ber 30th, and re p re sents an increase of $1,600',000 in th e b a n k ’s su rp lu s account. A ccording to the D ecem ber 30th statem en t figures, the b a n k ’s total resources are o ver $223,000,000. New High Mark $ 9 , 8 3 6 ,7 9 7 . 7 4 John H. Witte. Jr., President. Vincent P. Cullen, Executive Vice President. * B ank of A m erica’s y ear end sta te m ent of condition show s capital funds at th e new high m ark of $219,322,000. This is an increase of $52,937,000 over a year ago, $41,161,530 of w hich w as realized from th e issuance on Decem b er 29, 1944, of 800,000 shares of new com m on stock. D eposits and resources w ere also es tablished at new high levels. A t De cem ber 30, 1944, deposits w ere $4,340,539.000, a gain of $842,386,000 over a year ago. T otal resources w ere $4,599,124.000, an advance of $904,212,000 d u r ing th e year. Loans and discounts o u tstan d in g at th e y ear end aggregated $894,436,000, an increase of $83,776,000 over Decem b er 31, 1943. In v estm en ts in securities am ounted to $2,740,064,000, an increase of $644,632,000 over th e previous year end, chiefly rep resen tin g p urchases of U. S. G overnm ent securities. Bankers Trust, New York T he statem en t issued by B ankers T ru st Company, New York, as of De cem ber 31, 1944, reflects for th e first tim e th e recen t changes m ade in the capital funds of the com pany, w ith th e capital account now stan d in g at $30,000,000 and su rp lu s at $80,000,000, in com parison w ith the previous am ounts of $25,000,000 and $75,000,000 respective ly. W ith undivided profits at $27,344,871,13, th e total capital funds am ount to O U R 5 0 th Y E A R 85 $137,344,871.13, in com parison w ith $125,366,747.03 at th e end of 1943. P a rt of th e increase of $11,978,124.10 in th e to tal capital funds of th e com p an y d u rin g th e y e a r w as due to th e tra n s fe r of $5,000,000 from th e general reserv e account to provide for th e in crease of $5,000,000 in capital. In con nection w ith th is increase in capital, a stock dividend of $5,000,000 w as paid on D ecem ber 29, 1944, to stockholders of record on D ecem ber 12, 1944, on th e basis of one sh are of additional stock for each five sh ares held. D eposits to taled $1,726,073,556.53, in com parison w ith $1,594,694,072.48 a t th e end of 1943. T he holdings of U nited States G overnm ent bonds am ounted to $1,059,569,241.35 w hich com pares w ith th e D ecem ber 31, 1943, figure of $950,441,228.19. Statement of Condition of THE CITY NATIONAL BANK OF CLINTON C LIN T O N , IO W A December 30, 1944 RESOU RCES C ash a n d D ue fro m B a n k s ............................................................................................ L o an s a n d D is c o u n ts ....................................................................................................... B o n d s: U. S. G o v e rn m e n t S e c u r itie s .................................................................................... $ 5 , 0 6 7 ,5 3 1 . 9 7 M u n ic ip a l S e c u ritie s .................................................................................................. 6 5 2 , 4 5 4 .0 0 O th e r M a rk e ta b le S e c u r itie s ................................................................................... 9 9 9 , 0 1 4 .7 0 Sto ck in F e d e ra l R eserve B an k B a n k in g H o u se .............................. F u r n itu r e a n d F i x tu r e s ............... A ccrued I n t e r e s t ........................... O v e rd ra fts ......................................... O th e r R e s o u r c e s .............................. $ 3 , 8 1 5 ,5 5 2 . 8 7 2 , 3 0 6 ,1 3 4 . 3 3 6 , 7 1 9 ,0 0 0 . 6 7 1 8 , 0 0 0 .0 0 3 8 ,7 4 3 .9 4 5 ,5 8 1 .8 2 4 1 ,3 4 8 .6 4 7 4 5 .0 5 3 , 0 2 1 .6 0 $ 1 2 , 9 4 8 ,1 2 8 . 9 2 L IA B IL IT IE S C a p ita l ................................................................................................................ S u rp lu s ............................................................................................................. U n d iv id ed P ro fits ............................................ ........................................ R eserve fo r T a x e s, In te re s t, C o n tin g e n c ie s, E t c .. ........................ D is c o u n t c o lle c te d b u t n o t e a r n e d ........................................................ D e p o sits: D em an d ............................................................................................................................ $ 8 , 2 6 7 ,4 9 9 . 5 3 T im e . . .............................................................. ............................................................ 3 , 0 8 4 ,4 2 3 . 6 2 U. S. G o v e rn m e n t W a r L o an A c c o u n t.............................................................. 8 1 2 , 6 7 7 .1 4 $ 4 0 0 , 0 0 0 .0 0 200 , 000.00 8 2 , 0 1 7 .7 6 9 2 ,8 6 5 .9 2 8 , 6 4 4 .9 5 1 2 , 1 6 4 ,6 0 0 . 2 9 $ 1 2 , 9 4 8 ,1 2 8 . 9 2 Surplus Increased D irectors of F irs t N ational B ank of M inneapolis at a recen t m eeting in creased th e su rp lu s of th e b an k $1,000,000 by th e tra n s fe r of th a t am o u n t from undivided profits. C apital of th e b an k is now $6,000,000', su rp lu s $9,000,000 and undivided profits $3,025,000. L ym an E. W akefield, p resident, said th e increase in capital stru c tu re is in line w ith re c e n t grow th in th e b a n k ’s deposits. Member of The Federal Deposit Insurance Corporation, Washington, D. C. $5,000—Maximum Insurance for Each Depositor—$5,000 Plan to use an a d v e rtisin g program of w e ll w orded m essa g es crea ted by W e s slin g S e rv ic e s, D e s M oin es, Iow a lÁ /e ó ó íljic f J S e r u ic e ô C o u n s e l o n B a n k P u b i c R e l a t i o n s D . R . W E S S L IN G , P R E S ID E N T Yòeó i/Yjoinei 9, ~3oiva Index To 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 ............... A l l y n , A. C. a n d C o m p a n y ................................. A m e r i c a n E x p r e s s C o m p a n y ......................... 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. — C h i c a g o ............................................................... A m e ric a n T r u s t a n d S av in g s B a n k — D u b u q u e , I o w a ................................................... 35 39 55 66 83 C C a l i f o r n i a B a n k ..................................................... C e n t r a l H a n o v e r B a n k a n d T r u s t C o.. . . C e n t r a l N a t i o n a l B a n k a n d T r u s t C o.. . . C h a s e N a t i o n a l B a n k ........................................... C h em ical B a n k an d T r u s t C o m p a n y .. .. C i t y N a t i o n a l B a n k — C l i n t o n .......................... C ity N a tio n a l B a n k a n d T r u s t C o m p an y — C h i c a g o ............................................................... C o m m e r c e T r u s t C o m p a n y .............................. C on tin en tal B an k and T ru st C om pany. C o n tin e n ta l Illin o is N a tio n a l B a n k an d T r u s t C o m p a n y ................................................... C o n tin e n tal N atio n al B a n k — L in c o ln ... 10 87 31 30 27 14 4 80 85 40 72 77 8 60 I) F F a rm e rs S ta te S av in g s B a n k — In d e p e n d e n c e .................................................................. F e d e r a l H o m e L o a n B a n k of D es M oines F ir s t an d A m e ric a n N a tio n a l B a n k — D u l u t h ....................................................................... 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 — L i n c o l n ....................... F i r s t N a t i o n a l B a n k — M i n n e a p o l i s ......... F i r s t N a t i o n a l B a n k — ' O m a h a ...................... O U R 50th Y E A R https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 77 84 48 79 61 42 59 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 ............ 35 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 C o .. . 45 M i s s i s s i p p i V a l l e y T r u s t C o m p a n y .......... 70 54 75 N a t i o n a l B a n k o f B u r l i n g t o n ......................... N a t i o n a l B a n k o f C o m m e r c e .......................... 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 ational B a n k — S i o u x F a l l s , S. D ............................................... N o r t h w e s t e r n N a t i o n a l B a n k ....................... N o rth w e ste r n N a tio n a l L ife In s u ra n c e C o m p a n y ................................................................. 84 58 36 68 ■ O m ah a N a t i o n a l B a n k ........................................ 23 52 H H a l s e y , S t u a r t a n d C o m p a n y , I n c ............... 39 H a m m e r m i l l P a p e r C o m p a n y ................... 28 -2 9 H a stin g s N ational B a n k — H a stin g s, N e b r a s k a ............................................................... 57 H e r r i n g - H a l l - M a r v i n S a f e C o m p a n y . . . 73 H o m e F e d e r a l S a v i n g s a n d L o a n A s s n . . 82 H o m e I n s u r a n c e C o m p a n y .............................. 7 N o 53 47 32 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 a n d T r u s t C o.. . . . 41 78 I R I n v e s t o r s S y n d i c a t e ............................................. 40 I o w a -D e s M oines N a tio n a l B a n k a n d T r u s t C o ..................................................................... 88 I o w a S t a t e B a n k a n d T r u s t C o m p a n y —• I o w a C i t y ............................................................... 78 I r v i n g T r u s t C o m p a n y ........................................ 6 R o y a l B a n k o f C a n a d a ......................................... 74 R o o v a a r t , J . W ., D e s M o i n e s ....................... 68 R u s s e l l C o u n t y B u i l d i n g a n d L o a n A s s n . 34 44 73 T e n s i o n E n v e l o p e C o r p o r a t i o n .................... T h o m s o n a n d M c K i n n o n ................................... T Iv K o c h B r o t h e r s .......................................................... S S t. P a u l T e r m i n a l W a r e h o u s e C o ............... 5 S c a r b o r o u g h a n d C o m p a n y ................... 3 3 -3 8 - 6 3 S e c u r i t y N a t i o n a l B a n k ...................................... 71 S t o c k Y a r d s N a t i o n a l B a n k — S t. P a u l . . 44 J J a m i e s o n a n d C o m p a n y ...................................... D a v e n p o r t , P . E . a n d C o m p a n y .................58-6 6 D e l u x e C h e c k P r i n t e r s , I n c ........................... 83 D es M o in es B u ild in g , L o a n a n d S a v in g s A s s o c i a t i o n ............................................................. 79 D o a n e A g r i c u l t u r a l S e r v i c e ............................ 71 D r o v e r s N a t i o n a l B a n k ...................................... 67 58 81 49 64 G G u a r a n t y T r u s t C o m p a n y ................................. B B a n k o f A m e r i c a ..................................................... B a n k e rs T r u st C o m pany— D es M o in es.. B ankers T ru st C om pany— N ew Y o rk ... F i r s t N a t i o n a l B a n k — St. J o s e p h ............... F i r s t N a t i o n a l B a n k — S t. 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 ir s t N atio n al B a n k an d T ru st C om p a n y o f F a r g o ..................................................... 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 .................. 35 38 G U L a M o n t e , G e o r g e a n d S o n ................................. 3 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 .................... 75 L i v e S t o c k N a t i o n a l B a n k — C h i c a g o . . . . 25 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 .......... 62 L i v e S t o c k N a t i o n a l B a n k —- S i o u x C i t y . 50 U n io n B a n k a n d T r u s t C o m p an y — O t t u m w a ...................................................................... 69 U n i t e d S t a t e s N a t i o n a l B a n k — O m a h a . . 56 m W M a n u f a c t u r e r s T r u s t C o m p a n y .................... 9 M ercan tile C om m erce B an k an d T ru st C o m p a n y ................................................................. 76 M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 34 M e r c h a n t s N a t i o n a l B a n k ................................. 2 V V a l l e y S a v i n g s B a n k ........................................... W a l t e r s , C h a r l e s E ............................................... W e l c h , J a y A .............................................................. W e s s l i n g S e r v i c e s ................................................ W e s t e r n M u t u a l F i r e I n s u r a n c e C o .......... W h e e l o c k a n d C u m m i n s , I n c ........................... Northwestern Banker 65 60 72 85 34 38 January 1945 86 In th e DIRECTORS' ROOM A rtistic Sarcasm “You say Ja n e is a n a tu ra l born a r tist? ” “Yeah—she know s exactly w here to d raw th e line.” A long-haired m an w as accosted by a little bootblack: “Shine y o u r shoes, sir?” He w as disgusted by th e d irt on th e lad’s face. “I don’t w an t a shine, m y lad,” he said, “b u t if y o u ’ll go and w ash yo u r face, I ’ll give you a dim e.” “Righto, g u v ’n o r,” replied th e boy, as he m ade his w ay to a neighboring foun tain. Soon he retu rn ed , looking m uch cleaner. “Well, m y boy,” said th e long-haired one, “you have earned your dime; h ere it is.” “I don’t w an t your dime, guv’n o r,” replied th e boy. “You h an g on to it and get your h a ir cut.” Via St. P eter: H ow did you get here? New A rrival: Flu. N a m ed “Papa, w h a t do you call a person w ho brings you in contact w ith th e sp irit w orld?” “A b a rte n d e r.” W rong F riends A ssu red Passenger: You’ll b rin g me back safe, w on’t you? Pilot: I ’ve n ev er left anyone up th ere yet. F ra n k ly S p ea kin g C.O.: “W hy a re n ’t you w ork in g ?” P vt: “I d id n ’t see you coming, Sir.” Official W elcom e A tra m p w as sleeping b ehind a b u n k er on a golf course w h en th e club secretary, prow ling around, kicked him none too gently. The tram p jum ped to h is feet and dem anded: “W ho are you?” “I ’m th e secretary of th is club,” re plied th e official. “W ell, th a t’s a hell of a w ay to get new m em bers,” said th e tram p. G ettin g S e t B row ser: I ’m so rry to keep you w ait ing, b u t I ’ve been settin g a tra p for m y wife. W ow ser: Too bad, w hom do you suspect? B row ser: A m ouse in th e kitchen. P re-shrunk Pvt.: “Do you sh rin k from kissing?” Blonde: “Oh, m y no, w h y if I did I ’d be n o th in g b u t sk in and bones.” R ecovering Doctor: “H ow ’s th e p a tie n t th is m o rn ing?” N urse: “I th in k h e ’s reg ain in g con sciousness. T his m orning he trie d to blow th e foam off his m edicine.” K n e w H is Wi f e Jones w as a druggist, and w h en his w ife ra n aw ay w ith an o th e r m an he Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis in serted th e following ad v ertisem ent in th e local paper: “T his is to notify th e p a rty w ho so k indly relieved me of m y w ife th a t I can supply him w ith linim ents, b and ages, arnica, healing salves, absorbent cotton, iodine, sleeping pow ders, and cru tch es at rock-bottom prices.” January 1945 “My, my, how on earth did you come to get so com pletely intoxicated?” asked th e m agistrate. “I got in bad com pany, Y our Honor. You see, th e re w ere four of us. I had a bottle of w hiskey—and th e o th er th re e d id n ’t touch th e stuff.” ' P u n ish m e n t F irs t Devil: Ha, ha! Ho, ho! S atan: W hy do you laugh? F irs t Devil: I ju st p u t a w om an into a room w ith a thousand h ats and no m irro r. R esto red C.O.: “How do you explain th a t b a r rel of beer I found in your room ?” Pvt.: “D octor’s orders, Sir. He said th a t d rin k in g beer w ould resto re m y s tre n g th .” C.O.: “And did it?” Pvt.: “Yes, Sir, w hen I bought th a t b arrel I could h ard ly move it and now I can push it all around th e room .” G one Cook-: W h at’ll I do, sergeant, th e oil stove has gone out. Supply Sergeant: Well, lig h t it. Cook: I can’t—it’s gone out the roof. O ne D isadvantage “Daddy, w h a t is th e curse of d rin k ?” “B eing stu ck w ith th e check.” CONVENTIONS Feb. 12, GROUP ONE, IOW A BANK ERS ASSOCIATION, Sioux City. Feb. 22. GROUP EL EVEN. IOWA BANKERS ASSOCIATION, Bur lington. A lim o n y L ittle M ary: W hat is alim ony, M other? M other: Alim ony, m y dear, is a m an ’s cash su rre n d e r value. H o ld On An A m erican officer in Ita ly ap proached a w ounded Nazi pilot w ho had been shot dow n and asked him , “Do you w an t us to brin g you a p riest?” “H itler is m y priest,” answ ered th e Germ an. “Well, if you’ll ju st try to hold on,” said th e A m erican, “w e’ll get him for you.” B o n n y B airn Two revelers approached a railw ay tick et window. One w as c arry in g his friend in his arm s. The w eight caused him to stagger. “Two tickets to M anchester,” he said. The clerk studied th e m oney th a t w as handed to him. “W ait a m in u te,” he said. “You only gave me th e price of one ticket. H ow about yo u r frien d ?” The first m an looked fondly at the fellow he w as carry in g in his arm s. “H e’s only a baby, m ister,” he ex plained. “Only four y ears old.” The astounded clerk took a second look. “F o u r years old, m y eye!” he cried. “W hy, this fellow you’re carry in g is over six feet tall, w eighs about 160 pounds—and has a beard as th ick as a m attress!” The tick et b uyer dropped his b u rd en uncerem oniously. “You idiot!” he how led at his pal. “I told you to shave!” O U R 5 0 th Y E A R DIRECTORS PAUL BEER President, The F lynn D airy Co. Bankers Triist Company DR. 0. J. FAY Surgeon J. G. GAMBLE Attorney J. W. HOWELL Pres., Warfield-Pratt-Hdwell Co. S T A T E M E N T OF C O N D IT IO N F. W. HUBBELL Pres., Equitable L ife In s. Co. o f Iowa E. J. LINDHARDT President, National By-Products., Inc. D ecem ber 30, 1944 E. T. MEREDITH, Jr * V. P ., Meredith Publishing Co. SHIRLEY PERCIVAL Pres., Green Colonial Furnace Co. RESOURCES RUSSELL REEL President, Yellow Cab Co. Loans and D i s c o u n t s .................................................... $11,582,779.25 JOHN D. SHULER President, Shuler Coal Co. Other S e c u r it ie s ......................................................... B. F. KAUFFMAN President Stock in Federal Reserve B a n k ............................. J. W. HUBBELL Real E s t a t e ................................................................. Vice President S. C. PIDGEON Furniture and F i x t u r e s ............................................. Vice President 682,220.72 60,000.00 6.00 43,767.26 U. S. G overnm ent Bonds . . . $31,901,026.74 R. R. ROLLINS * Vice President Cash and E x c h a n g e ................. 11,036,980.60 C ustom er’s L iability on Letters of Credit and Trade A c c e p t a n c e s ............................................. OTHER OFFICERS 42,938,007.34 1,375.00 C. W. MESMER Vice President $55,308,155.57 F. C. ATKINS Vice President and Cashier L. NEVIN LEE Vice President LIABILITIES F. S. LOCKWOOD Secretary and T rust Officer Capital (Com m on S t o c k ) .........................................$ 1,000,000.00 S. G. BARNARD Assisant Secretary S u r p l u s .......................................................................... WM. ELLISON 1,000,000.00 A ssistant Cashier Undivided P r o f it s ......................................................... 523,152.94 G. A. MOECKLY Reserve for Taxes and I n t e r e s t ............................. 29,009.28 Other R e s e r v e s .............................................................. 420,443.59 A ssistant Cashier Mgr. Personal Loan Dept. A. F. ERICKSON D e p o s its .......................................................................... A ssistant Cashier K. L. D eBOLT Bank’s Liability on Letters of Credit and Trade A c c e p ta n c e s ............................................................. Assistant Cashier Mgr. Mortgage Dept. 52,334,174.76 1,375.00 * I n Government Service $55,308,155.57 BUY U N I T F .D STA TU S m ffff WAR OMPANY https://fraser.stlouisfed.org ..MEMBER FEDERAL Federal Reserve Bank ofDEPOSIT St. LouisINSURANCE CORPORATION fßONDS I AND 6th and Locust kSTAMPS I YEAH Founded in 1875, ten years after the close of the Civil War, this Bank has successfully met the complex problems resulting from three wars . . . . from several panics and depressions that have tested the economic foundations of the nation. Throughout the years — in good times and bad, Iowa Banks and Bankers have learned that the lowa-Des Moines National provides a strong, dependable correspondent connection. Capital Funds Over Five Million Dollars I0W A-DES MOINES NATIONAL BANK & TRUST MEMBER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL COMPANY DEPOSIT INSURANCE C ORPORATI ON
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