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•IA M A ll in in How to Increase mm Earnings in 1949 Survey— Pages 20, 21 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DR. EDWIN G. NOURSE (seated) DISCUSSES INFLATION WITH JOHN D. CLARK— See Page 13 Statement of Condition, December 31, 1948 UNITED STATES DEPOSITARY RESOURCES Loans and Discounts.................................................................$12,460,310.34 United States Government Securities................................. 24,101,000.00 State, County, and MunicipalBonds................................... 20,347,194.37 Other Bonds............................................................................... 834,240.09 Overdrafts .................................................................................. 10.11 Bank Premises........................................................................... 837,578.77 Cash on Hand, Due from Banksand U. S. Treasurer.... 23,786,355.98 $82,366,689.66 LIABILITIES Capital Stock ...........................................................................$ 500,000.00 Surplus ........................................................................................ 3,800,000.00 Undivided Profits ..................................................................... 526,080.78 Deposits ...................................................................................... 77,540,608.88 $82,366,689.66 M IN N E S O T A ' SO. D A K W IS CO N SIN IO W A Ce o a r R a p i d s NEBRASKAl 'IL L IN O IS , KANSAS \ A m er M . IH, ir n¡ M IS S O U R I THE MERCHANTS NATIONAL = bm k= O F F I C E R S JAMES E. HAMILTON, Chairm an Executive Committee S. E. COQUILLETTE, Chairm an of the Board JOHN T. HAMILTON II, President MARK J. MYERS, V ice President iterili^' FRED W . SMITH, Vice President GEORGE F. MILLER, Vice President and Trust Officer M AR VIN R. SELDEN, V ice President r K m *. , 0 R . W . M AN ATT, V ice President L. W . BROULIK, V ice President PETER BAILEY, C ashier R. D. B RO W N, Assistant Cashier O. A . KEARNEY, Assistant Cashier STANLEY J. MOHRBACHER, Asst. Cashier EVERETT C. PRATT, Assistant Cashier C. F. PEREMSKY, Assistant Cashier VICTOR W . BRYANT, Assistant Cashier JAMES E. COQUILLETTE, Assistant Cashier Cedar Rapids M e m b e r F ed eral D e p o sit In su rance Iowa C o rp o ratio n Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act o f March 3, 1879. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 ■"'h r 5 % » : i e V ' uo s laiA°n'e \ LfV rO S & V *_ „«* k e b uS‘ For 9ei l a ^ ° n' been r A mer»c safeW che<* GEORGE LAMONTE & SON, NUTLEY, N EW JERSEY VlON vl T* WAVY u*6i <g> AM A lAMOMYE liAOI-MAUK * A Check Paper All Your Own Thousands of hanks and many of the larger corporations use La Monte Safety Papers with t^eir own trade-mark or design made in the paper itself. Such INDIVIDUALIZED check paper provides maximum protection against bath altera* tion and counterfeiting — makes identification positive. \ MILLS % tn .A J https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, J a n u a r y , 1949 4 jRUS'i, CENTRAL BANK AND HANOVER TRUST NEW TRUSTEES COMPANY YORK Statement of Condition, December 31, 1948 GEORGE W . D A V IS O N Honorary Chairman LOUIS S. CATES Chairman of the Board Phelps Dodge Corporation C O LB Y M. CHESTER Honorary Chairman Genera /Foods Corporation J O H N B. C LARK President, The Clark Thread Co, JA R V IS C RO M W ELL President William Iselin & Company, Inc, B E R N A R D M. CULVER Chairman o f the Board Continental Insurance Company J O H N S T O N DE FORES1 Attorney T H O M A S D IC K S O N President Berlin and Jones Company, Inc, W A L T E R G. D U N N IN G T O N Attorney Dunnington, Bartholow and M iller W IL L IA M A. ELDRIDGE Vice President ASSETS Cash and Due from B a n k s ...............................$ 448,562 ,353.31 U. S. Government Securities................... 590,524 ,777.14 State and Municipal Securities . Other S e cu ritie s.................................... • • • 12 ,8 21 ,612.69 Loans and Bills Purchased........................ 425 , 538 ,437.08 Real Estate M ortgages.......................... 6,9 13 ,018.85 Banking H o u s e s .................................... 1 1 , 550,008.00 Interest A ccru e d .................................... 2 ,838,009.52 Customers’ Liability on Acceptances O u tstan d in g................ 5 ,4 0 1 ,465.14 Total$ 1 , 543 ,948, 522.19 W IL L IA M F. C. E W IN G Executive Vice President Alexander Smith and Sons Carpet Co, R O B E R T L. G E R R Y President, The Gerry Estates, Inc, L IA B IL IT IE S W IL L IA M S. G R A Y President C a p it a l......................................$ 2 1 ,000,000.00 FRED H . H A G G E R SO N President Union Carbide and Carbon Corporation S u rp lu s ........................................80,000,000.00 C. JARED INGERSOLL Chairman o f the Board Kansas, Oklahoma and G ulj Railway Co, Undivided Profits......................... 29,550,435.12 K . T . KELLER President, Chrysler Corporation Reserves: GEORGE M. MOFFETT Chairman o f the Board Corn Products Refining Co, J O H N K . O L Y P H A N T , JR. Vice President EUSTIS PAINE Chairman o f the Board, N ew York and Pennsylvania Co., Inc. AUG U STE G. P R A T T Chairman o f the Board The Babcock and W ilcox Company G W IL Y M A. PRICE President Westinghouse Electric Corporation LUCIUS F. R O B IN S O N , JR. Attorney Robinson, Robinson and Cole J O H N P. STEVENS, JR. President, J. P. Stevens & Co., Inc, H E N R Y P. TU RN B U LL Montclair, N ew Jersey W IL L IA M W O O D W A R D New York, N. Y, N o r t h w e s t e r n Ba nker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39,7985840-46 Taxes, Interest, etc.......................... $ 130 , 550 ,435.12 5 ,992 , 593.30 Dividend: Payable January 3 , 1 9 4 9 ........... Acceptances . .» . . . . 1 ,050,000.00 $7 ,640,900.56 In P ortfolio................................ 2,070,499.48 5 ,570,401.08 Deposits..................................................... 1 ,400, 785,092.69 Total$ 1 , 543,948, 522.19 There are pledged to secure public monies and to qualify for fiduciary powers U. S. Government S e c u r it i e s ...........................$49 ,243 , 250.95 MEMBER F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T I O N John Quincy Adam s’ birthplace Built in 171 6 The Penns Hill Cottages Where Two Presidents Were Born HEN John Adams was courting Abi gail Smith, the young lady’s father at first did not look with favor on the match W and preached a sermon from the text, “ Alary hath chosen the better part,” in ref erence to his other daughter’s sounder pros pects. Nevertheless, Abigail’s husband be came a distinguished statesman and our second President, while Mary’s acquired only reflected fame. John Adams was born in the family cot * tage at the foot of Penn’s Hill in what was then Braintree, Massachusetts. After his marriage in 1764 he moved into the neigh boring house which he had inherited from his father and opened his law office in the old kitchen. In this cottage his son, John Quincy, was born. Though for a time the Adams family lived À was declared Abigail joined them. She and her husband never again lived in their Braintree home though John Quincy spent two summers there after his marriage. Like his father, he devoted himself to the service of his country and was finally rewarded with the Presidency. Abigail and John Quincy were subjected to It was from the Penn’s Hill cottage that the confusion and terror of wartime. Militia Abigail Adams wrote her famous letters and men and refugees were often quartered in in one of these there is evidence or near the two cottages, wounds that in spite of his enforced were washed and dressed and absence, her husband held his the family’s pewter spoons were home dear, for she said, “ This cast into bullets. little cottage has more heartfelt From a rock on Penn’s Hill satisfaction for you than the little John Quincy and his most brilliant court can afford.” mother watched the smoke of The birthplaces of John Adams burning Charlestown and lis and his son are now owned by tened to the distant cannon dur ing the battle of Bunker Hill. So The lovely Abigail—wife o f the members of the Adams family vivid was his mem- second President, mother o f sixth and are used as the headquar ters, respectively, of the Quincy Chapter of | or}' of that occasion that on its the Daughters of the Revolution and the i eleventh anniversary he could lj not take part in a celebration, re1 marking “ . . . the ground which had been the scene of such an awful Day should not be made a scene of Revels and Feasting.” When John Adams went to France to represent the Conti nental Congress in 1778, he took John Quincy with him. Abi- )» John Adam s’ birthplace Built about 1681 Quincy Historical Society. * ★ * Jhe Home, through its agents and brokers, is America’s leading insurance protector of American Homes and the Homes of American Industry. a TH E HOM E a gail could not bear to watch them sail, but her husband wrote that Home Office: 59 Maiden Lane, New York 8, N.Y. “ Johnny behaved like a man.” A year and a half later the boy once more accom panied his father to Europe and after peace The H om e Indemnity Com pany, an affiliate, writes Casualty Insurance, Fidelity & Surety Bonds Fireplace with oven in kitchen o f John’s and Abigail’s cottage in Boston, the disturbances prior to the Rev olution compelled them to return to their Braintree home. Here too, though official duties kept the elder John away from home, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FIRE AUTOMOBILE MARINE 6 I M II lì« T O I t S MANUFACTURERS EDWIN J. BEINECKE Chairman, '¡'he Sperry & Hutchinson Co. TRUST COMPANY EDGAR S. BLOOM Chairman. Atlantic, Gulf and West Indies Steamship Lines ALVIN G. BRUSH Chairman, American Home Products Corporation Condensed Statement of Condition as at close of business December 31, 1948 LOU R. CRANDALL President. George A. Fuller Company CHARLES A. DANA It E S O I K C E S President, Dana Corporation HORACE C. FLANIGAN Vice-Chairman o f the Board JOHN M. FRANKLIN President, United States Lines Company PAOLINO GERI.I President. Gerli & Co., Inc. HARVEY D. GIBSON President FREDERICK GRETSCH President, Lincoln Savings Bank JOHN L. JOHNSTON President, Lambert Company OSWALD L. JOHNSTON Simpson Thacher & Bartlett KENNETH F. MacLELLAN Cash and Due. from Banks . U. S. Government Securities . U. S. Government Insured F. H. A M o r t g a g e s .............................. State and Municipal Bonds . Stock of Federal Reserve Bank Other S e cu ritie s ......................... Loans. Bills Purchased and Bankers’ A cceptances.............................. Mortgages . .................... Banking H o u s e s ......................... Other Real Estate Equities . Customers Liability for Acceptances Accrued Interest and Other Resources President, United Biscuit Company o f America 722,470,034.85 970,586,260.96 4.247,932.98 24,675,711.28 3,037,500.00 17,660,937.62 605.911,890.75 17,989,747.36 10.185,396.83 377,695.40 5.764,166.59 6,869,345.71 >,389,776,620.33 JOHN T. MADDEN LIABILITIES President, Emigrant Indus trial Savings Bank JOHN P. MAGUIRE President, John P. Maguire & C. R. PALMER Director, Cluett Peabody & Co., Inc. GEORGE J. PATTERSON President, Scranton & Lehigh Coal Co. WILLIAM G. RABE Vice President HAROLD C. RICHARD New York City HAROLD V. SMITH President, Home Insurance Co. C a p ita l........................ $41.250,000.00 S urplus.................... 60,000,000.00 Undivided Profits . . 28,316.108.90 Ê 129,566,108.90 Reserve for Contingencies . . . . 8,538,607.44 Reserves for Taxes, Unearned Discount, Interest, etc. 4.269.196.87 Dividend Payable lanuary 3, 1949 . 1,237,500.00 Outstanding Acceptances . . . . 6,274,061.43 Liability as Endorser on Acceptances and Foreign B i l l s ......................... 2.722.584.87 Cash held as Collateral or in Escrow 13,785,688.10 D ep osits............................................. 2.223,382,872.72 ¡>2,389,776,620.33 ERNEST STAUFFEN Chairman, Trust Committee L. A. VAN BOMEL President, National Dairy Products Corporation United States Government and other securities carried at $70,103,806.82 are pledged to secure public funds and trust deposits and for other purposes as required or permittea by law. GUY W. VAUGHAN Chairman, Curtiss-Wright Corporation HENRY C. VON ELM Head Office: 55 Broad Street, New York City MOKK T I I A A t 7.-» O F F I C E S I N G K E A T E K N E W YORK Chairman o f the Board ALBERT N. WILLIAMS President, Westinghouse Air Brake Company N o r t h w e s t e r n Banker, J a n u a r y , 7949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis European Representative Office: 1, Cornhill, London, E. C. 3 Member Federal Reserve System Member New York Clearing House Association Member Federal Deposit Insurance Corporation Imagine a flash fire in your bank during banking hours. Your ledgers open . . . checks exposed . . . all your records out of the vault! Can you conscientiously expect your employees to rush them to safety? That’s why so many banks have installed Mosler Bookkeeping Safes. Not only are they more convenient to use, but they protect your irreplaceable records right on the spot. H osier s ledger card and check file for 24-hour fire protection These twin bookkeeping safes were specially designed by Mosler for Machine-posted bank records. The left-hand receding-door safe houses two trays— one for ledger sheets, one for statements. A utility drawer beneath holds signature cards or other records. The right-hand safe has four drawers, each housing three removable trays for cancelled checks after posting. The operator never has to leave her machine! Most important of all, it takes only seconds to close the doors when fire strikes . . . completely protect ing the contents. For your bank’s protection— and for greater oper ating efficiency— write or phone your nearest Mosler office today for our special booklet on Book keeping Safes. There’s no obliga tion, of course. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Tested and certified b y the independent U nder w r it e r s ’ L a b o r a to r ie s , In c., th ese sa fes are awarded their “ B ” label for tw o hour fire resist ance including 30-foot drop or im pact test. M o s l e r S a f e &. Main office: 320 Fifth Avenue, New York 1, N. Y. Factories: Hamilton, O. Largest Builders of Safes and Vaults in the World N o r t h w e s t e r n Banker, J a n u a r y , 194? 8 THE ROYAL BANK OF C A N A D A H ead O ffic e , M o ? i t r e a l SY D N EY G. DOBSON President JAM ES M UIR B U R N H A M L. M IT C H EL L Vice-President and General Manager Vice-President, Toronto Condensed Annual Statement as on 30th November, 1948 ASSETS Cash, cheques and balances with other banks.................................. Government and other public securities............................................... Other securities........................................................................................ Call lo a n s .................................................................................................. Other loans and discounts...................................................................... Liabilities of customers under letters of credit.................................. Other assets .................................................................. $ 425,204,065.67 918,420,522.36 136,626,725.57 56,534,207.84 600,923,527.65 65,104,477.12 19,674,260.30 $2.222,487,786.51 L IA B IL IT IE S Capital, reserve and undivided profits.................................................. $ 81,485,447.43 Notes in circu lation ................................................................................ 4,320,934.27 D e p o s its.............................................................. 2,067,488,996.81 Letters of credit outstanding................................................................ 65,104,477.12 Other liabilities......................................................................................... 4,087,930.88 $2,222,487,786.51 Over 640 Branches in Canada and Newjoundland— 62 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. Auxiliary in France THE ROYAL BANK OF CANADA (FRANCE) Paris NEW YORK AGENCY 68 William, Street N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 N O R M AN G. HART EDWARD C. HOL AH AN Agents 9 The First National Bank of Chicago B oard o f D irectors S tatem ent o f C ondition D ec em b er 31, 1 9 4 8 Edward E. Brown Chairman of the Board Leopold E. Block Chairman, Finance Committee, Inland Steel Company Ralph Budd President, Chicago, Burlington & Quincy B. R. Co. Augustus A. Carpenter Director, Hills-McCanna Company J. D. Farrington President, Chicago, Rock Island and Pacific Railroad Company James B. Forgan Vice-Chairman of the Board ASSETS Cash and Due from Banks United States Obligations- Direct and fullv (Guaranteed Unpledged . . . . . . $ 513,441,705.65 Pledged- To Secure Public Deposits and Deposits Subject to Federal Court Order 88,438,500.00 76,605,266.70 To Secure Trust Deposits 521,360.00 Under Trust Act of Illinois . Other Bonds and Securities Loans and Discounts . . . . Real Estate (Bank Building) Federal Reserve Bank Stock Customers’ Liability Account of Acceptances Interest Earned, not Collected . () ther Assets . . . . . . Walter M. Heymann Vice-President Henry P. Isham President, Clearing Industrial District, Inc. James S. Know Ison Chairman of the Board and President, Stewart-Warner Corp. Homer J. Livingston Vice-President Hughston M. Me Bain President, Marshall Field & Company LIAB ILITIE S Capital Stock . . . . . . . Surplus . . . . . . . Other Undivided Profits . . . . . Discount Collected, hut not Earned . . Dividends Declared, but Unpaid . Reserve for Taxes, etc. . . . . . Liability Account of Acceptances $ 427,765,063.37 Time Deposits . . . . . . 1,511,574,949.92 Demand Deposits . . . . . 139,185,555.54 Deposits of Public Funds . . . . • Liabilities other than those above stated . Bentley G. McCloud $ 614,921,553.67 679.006,832.35 91,472,928.52 844,048,751.42 2,816,524.06 4,200,000.00 3,733,689.91 4,922.641.00 256,706.99 $2,245,379,627.92 $ 75,000,000.00 65,000,000.00 3,934,180.00 1,306,463.31 1 ,200,000.00 16,331,593.40 4,080,881.70 2,078,525,568.83 940.68 >,245,379,627.92 President James Norris President, Norris Grain Co. John P. Oleson Banker Irvin L. Porter Albert H. Wetten JL Douglas Stuart John P. Wilson President, A. H. Wetten & Co. V ice-Chairman, Quaker Oats Company Vi ilson & Mcl Ivaine Robert E. Wilson Harry A. Wheeler George G. Thorp Chairman of the Board, Standard Oil Company (Indiana) Banker M adison, Wis. Vice-President Edward G. Seubert Chicago, ill. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C. J. Whipple Louis Ware President, International Minerals & Chemical Corp. MEMBER FEDERAL Robert E. Wood Chairman of the Board, Hibbard, Spencer, Bartlett & Co. Chairman of the Board, Sears, Roebuck and Co. DEPOSIT INSURANCE CORPORATION N o r t h w e s t e r n Ba nker, J a n u a r y , 1949 10 Statement oi Condition Directors December 31, 194S JAMES M. BARKER Chairman, Allstate Insurance Company Resources Cash on Hand and Due from Banks U. S. Government Securities State and Municipal Securities Other Bonds and Securities Loans and Discounts Federal Reserve Bank Stock Customers’ Liability on Acceptances and Letters of Credit Accrued Interest and Other Resources Bank Premises Total $160,450,079.58 161,672,258.05 38,462,412.04 11, 212, 870.01 169,572,127.23 600,000.00 726,156.30 1,957,993.32 1,700,000.00 $546,353,896.53 FR AN K R. ELLIOTT Chicago FRED G. GURLEY President, Atchison, Topeka & Santa Fe Railway Company A R T H U R B. HALL Hall & Ellis STANLEY G. HARRIS Chairman, Executive Committee W A Y N E A. JOHNSTON President, Illinois Central Railroad f . b . M cC o n n e l l President, Sears, Roebuck & Co. $ 27,042,267.07 6,754,598.95 3,014,000.85 240,000.00 726,156.30 508,576,873.36 $546,353,896.53 JOHN McKINLAY Chicago FRAN K McNAIR Chicago A. H. MELLINGER Director, Illinois Bell Telephone Co. CHARLES H. MORSE Director, Fairbanks, Morse & Co. GU Y E. REED Vice-President PAUL S. RUSSELL President United States Government Obligations and Other Securities carried at $48,924,701 are pledged to secure Public and Trust Deposits and for other purposes as required or permitted by law. W ILLIAM P. S1DLEY Sidley, Austin, Burgess & Harper Member of Federal Deposit Insurance Corporation S T U A R T J. TEMPLETON Wilson & Mcllvaine N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TH OM AS DREVER President. American Steel Foundries j o h n l . M cC a f f r e y President. International Harvester C o. Liabilities Capital $ 8,000,000.00 Surplus 12 ,000,000.00 Undivided Profits 7,042,267.07 General Contingency Reserve Reserves for Taxes, Interest, Etc. Dividend Payable January 3, 1949 Acceptances and Letters of Credit Demand Deposits $458,446,446.45 Time Deposits 50,130,426.91 Total MARK A. BROW N Executive Vice-President 1949 H ARO LD H. SW IFT Chairman of Board, Swift & Co. 11 >' Number two of a series ^JpHE petroleum industry finds bank loans well suited to its requirements. V the petroleum industry, is a leader in m aking loans to the oil com panies. Bank credit is flexible, available N o matter where you live, Chase credit when needed, and can be paid off helps to keep your car rollin g. when not needed. For these reasons, many oil CHASE OIL LOAN INDEX com panies have relied upon banks for one-third or m ore o f the m oney which they borrow from all sources. Chase N ational Bank, with a separate department dealing exclusively with THE CHASE NATIONAL BANK S e t t e e Y& ceed Y cw jiw d / y ftárm y ^Y //</J# j/irrr/Y r/red https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OF THE CITY OF NEW YORK Member Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , 1949 12 -i' 1 IS \ I \ < ; ¿ T R U S T /o i??p a ?U i N E W V O K K 0 ttn d v n sv d S t a t e m e n t o f 0 a u d it io n a s o f D e c e m b e r it l. Iff 001 in n t : t T o n s A S S E T S Cash and Due from B a n k s ..................................$ 385,031,243 H A R R Y E. W A R D Chairman o f the Hoard U. S. Government S e c u ritie s.............................. 395,088,401 W IL L IA M N. EN ST R O M President Other S e c u r itie s....................................................... 8,176,462 Stock in Federal Reserve B a n k ......................... 3,150,000 Loans and Discounts .......................................... 429,048,514 ..................... 2,733,075 Headquarters B u ild in g .......................................... 14,528,000 First Mortgages on Real Estate Custom ers’ Liability lor Acceptances O u t s t a n d in g ..................... Other A s s e t s ............................................................... RICHARD H. W E S T Executive Vice President 0. L. A L E X A N D E R President , Pocahontas Fuel Company Incorporated H E N R Y P. B R I S T O L President , Bristol-Myers Company JOHN F. D E G E N E R , Jr. C. A. Auffmordt & Co. 2,759,010 W I L L I A M K . DIC K New York, N. Y. 3,313,926 G E O R G E F. G E N T E S Vice President $1,243,828,631 1. J. H A R V E Y , Jr. President , The Flintkote Company H A R O L D A. H A T C H Vice President , Deering Milliken & Co., Inc. E I A l t 1 1 ,1 T I E S Capital S t o c k ........................................................... $ 50,000,000 D A V ID L. L U K E . Jr. President . West Virginia Pulp and Paper Company S u r p l u s ......................................................... 55,000.000 H I R A M A. M A T H E W S Vice President Undivided P r o f i t s ................................... 11,433,647 M I C H A E L A. M O R R I S S E Y Chairman o f the Hoard, The American News Company Total Capital A c c o u n t s ......................... $ 116,433,647 New York & Pennsylvania Co. D e p o s its .......................................................... $1,113,181,691 Reserve for Taxes and Other Expenses Dividend P a y a b l e ................................... . . . Other L ia b ilitie s....................................... 2,048,091 L e R O Y A. P E T E R S E N President , Otis Elevator Company J. W H I T N E Y P E T E R S O N President , 1,000,000 Acceptances: Less A m ount in Portfolio . . . P E T E R S. P A I N E President , United States Tobacco Company 3,371,325 JA CO B L. R E I S S President , Reiss Manufacturing Corporation 7,793,877 FLETCHER W. ROCKWELL Chairman o f the Hoard, $1,243,828,631 National Lead Company W I L L I A M J. W A R D A L L Chairman o f the Hoard , The Best Foods, Inc. United States Government Securities are stated at amortized cost. O f these, $25,460,908 are pledged to secure deposits o f public monies and for other purposes required by law. N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M EM BER FE D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N F R A N C I S L. W I I I T M A R S H President , Francis H. Leggett & Company 13 The follow in g letters are from N orthw estern Banker readers. Your views and opinions on any subject are w elcom e in this column. IN THIS JANUARY, 1949, ISSUE EDITORIALS A cross the Desk from the Publisher___________________ _____________ 13 FEATURE ARTICLES "Surprise and Delight" “ Imagine my surprise and delight when I was presented the handsome brief case which the N orthw estern B a n k e r so thoughtfully offered as one o f the prizes at the Financial Public Relations Association Convention held at Hollywood Beach, in Florida. “ I deeply regret that you were not pres ent in order that I might express to you my appreciation in person, but perhaps in the not too distant future, the N o rth w est ern B an k er might come to the Southeast, and if so, I hope you can stop by to say 'hello’ .” James G. Richardson, Asst. Vice Pres., The Commercial Bank and Trust Co., Ocala, Florida "Popular Pictures" “ We have just received another issue of the N orthw estern B a n k e r , which we greatly appreciate, and have removed there from the very beautiful picture in colors which it contains. “ We have been saving these pictures for (Turn to page 59, please) ON THE COVER Dr. Edwin G. Nourse, chairman of the Council of Economic Advisers, has told President Truman that the price situation is “improving,” but he warns that increased military foreign aid spending will tip the economic scale back toward inflation. Looking over the chart with Mr. Nourse, in the pic ture on the cover, is John D. Clark, a member of the Council. Chairman Nourse fears that a siz able increase beyond 15 billions in military spending would unleash “new forces of inflation.” He said the serv ices had wanted around 23 billions, but he cut them back to $14,400,000,000. The Council of Economic Advisers will submit a new anti-inflation pro gram to the 81st Congress, and Mr. Nourse will consult with cabinet mem bers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D ear E ditor ............................... ................ ........................... ........................ F rontispage ....................... ................. ................................................... ............ W hat Leading Bankers Say A b ou t Credit Policies fo r 1949............... “ H ow W e Plan to Increase Our Bank E arnings in 1949” ______ ..................... ........................... A N orthwestern Banker S u rvey 20, W hat Financial A dvertisers A re Thinking A b ou t............................22, Bankers Y ou K now — James M uir............... ........................................ ........ News and V iew s o f the Banking W orld __ __________Clifford D e P u y M y Six Rules fo r Investing Bank Fu nds.................................................. W hat Their Statements Show .... ...... ........................ ................................... Can Title to Land Be Claimed M erely Through Possession?— Legal Outlook F a irly Good-...___ ___________ _________ _______Paul S. R ussell 13 17 19 21 23 24 25 26 28 30 43 BONDS AND INVESTMENTS M unicipals and Rails Should Be Good Incom e Sources in 1949...... ................. ....... .......................... ......... ............ ....... ....... Raym ond T rig g er 51 INSURANCE H ow to G uarantee an Incom e in Spite o f H igh Taxes, Low Interest ............................. ........................ ........................R obert S m yth 57 STATE BANKING NEWS M innesota News ................................. ........ ........ ....... .......... .......... ................. Tw in City N ew s............................................................................ ............ South Dakota N ew s.... ............................... ............................. ......................... Sioux Falls N ew s....................................................................................... N orth Dakota N ew s.............. ........ ................ ................................................. Nebraska News ........................................ .......................................................... Omaha News ...................................... ...................................................... N orthw estern Bell Bonds Signed by T rustee.................................. Iow a News ........................................................................................................... Sioux City Group M eeting Bulletin.................................................... Des Moines N ew s................................. Sioux City N ew s..................................... Coin Collectors Colum n..................... Conventions ......................... ........ .................. ............................... ................... 61 64 69 70 71 73 75 76 79 79 88 89 90 92 IN THE DIRECTORS' ROOM Some Short Stories to Start the Y ear R ight..___ ________ ___ _____ _ 94 N O RT H W E STE R N BANKER 527 Seventh St., Des M oine s 9, Iow a, Telephone 4-8163 C L IF F O R D DE PUY Publisher H E N R Y H. H A Y N E S Editor E L IZ A B E T H C O LE A d vertising A ssista n t PAUL W. SH O O LL Field Representative R A LPH W. M O O R H E A D A sso c ia te Publisher BEN J. H A L L E R . JR. A sso c ia te Editor H A Z E L C. S T E P H E N S O N Auditor M A L C O L M K. F R E E L A N D A sso cia te Editor S A D IE E. W A Y Circulation Departm ent JO SEPH W . FR A N KS Field Representative N E W Y O R K O F F IC E Frank P. Sym s, Vice President, 505 Fifth A ve., Suite 1806 M U rra y H ill 2-0326 DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review, Des Moines Insurance Directory, Iowa-Nebraska Bank Directory. N o r t h w e s t e r n Banker, J a n u a r y , 1949 14 any action which may draw government more largely into interference with individual free dom. (3) Work together on our public problems. What bankers do through their organized efforts may be more important in the next few years in the well-being of each one of us than what we do individually.” There never was a time in the history of Amer ican banking when political statesmanship as well as economic statesmanship was* so vitally needed as now. Our trend for 15 years has been to let Washing ton solve our problems for us. The public has been taught and educated that anything which may go wrong with our economy can be solved on Capitol Hill. Bankers must take the lead in bringing us back to help solve our individual problems in our individual communities, and thus the sum total of those decisions will be a better economy at home and eventually let’s hope a better economy and better statesmanship abroad. The time is now. A cro ss th e D esk F ro m th e P u b lis h e r Q sjclA , (R jcw d n lp h . (B w u jsil j l l : Chairman Executive Committee, National City Bank of New York (D qjcUi M w v u } S ’ S hum an: Our greatest spending President According to your recent message to Congress, you will be the greatest “ spending President” in history, even exceeding your late lamented asso ciate, Franklin Deficit Roosevelt. According to your program, you are asking for a budget of approximately 44 billion dollars and for another 4 billion dollars in taxes. We listened to your message very carefully, Mr. President, and did not hear one word mentioned In your recent very fine address on “ Banking Statesmanship Today,” you pointed out three main battle fronts on which we are now fighting: 1. On the foreign front we are fighting Com munism in a “ cold war.” 2. In the United States we are battling against inflation. 3. Both here and throughout the world social changes are “ pushing back the democratic way of life” and these changes must be re sisted. The bankers of America are vitally interested in all three of these “ battles,” because at the base of each one of them is the economic problem of how we can continue our own economy and at the same time fight back the forces which would destroy our democratic way of life and with that our own financial stability. In summarizing your conclusions, Mr. Burgess, you said, “ Taking a broad look at the three threats to our American civilization, the banker may have an influence on where this country moves. Three things we may do: (1) Under There is one item in the Hoover report which shows that 3 billion dollars could be saved by re grouping 60 government agencies into 15. but there was no mention made of it in your speech to Congress. The Hoover report also indicated that it now costs $11.40 to process a government order for a $10 purchase. stand the issues and take a critical look at dayto-day policies in the light of the longer term trends. (2) In our own business exercise restraint in action which may be inflationary, restraint in Such inefficiency would not be permitted for a minute in any business large or small outside of the government. Also, if taxes are increased, Mr. President, they o r t h w e s t e r n Banker, J a n u a r y , 1949 Digitized forNFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis about reducing government expenses. As you may remember, you appointed ex-presi dent Herbert Hoover to examine the over-all pic ture of government operations and with his com mittee to make recommendations which would re duce government expenses. That commission has worked for 14 months and made suggestions which would save much more than the 4 billion dollars in extra taxes which you are suggesting. should not be on the small group of individuals who pay 38 per cent of the total income taxes. The U. S. Treasury’s latest report shows that: 1. 49,965,474 individuals filed returns. 2. Of this number 889.712 with net incomes of $10,000 or more paid $6,567,000,000 or 38 per cent of the total individual tax collected. 3. The total individual tax collected was 17 billion dollars. When 38 per cent of the total income taxes are paid by only 889,000 of the population, we suggest, Mr. Truman, that you do not add more taxes on to this group— or on any other group— but start reducing- government expenses. Why not follow the suggestions and program outlined b}r your own Hoover committee and put the government on a basis of saving- money and reducing- taxes? Or do you want to continue to outspend all your predecessors? -So far you are headed in that direction. O slW e Q h w ils A , J . (B h a n n m L .: Secretary of Agriculture Since our national prosperity depends to a large measure on the income of our farmers, we have been in a very advantageous position during the last 10 years as the farmer’s income is 300 per cent higher than it was in pre-war days. The figures have been compiled by the United States Chamber of Commerce, and present these very interesting comparisons: Farm Income 1939— $ 8.7 Billions 1948— 28.7 Billions Also, all our other statistics for the nation have increased as follows according to this same re port : National Income 1939— $ 72.5 Billions 1948— 221.2 Billions Wages and Salaries 1939— $ 45.7 Billions 1948— 131.2 Billions Net Profits Corporations 1939— $ 5 Billions 1948— 20.3 Billions All of these comparisons show a large percent age increase during the last 10 years, which simply proves the point that our national income rises and falls as our farm income goes up or down. And there were some farmers who thought President Truman caused all this prosperity. But did he? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (D&wl dtwwLcL $Jboni&A^: Executive Manager, A.B.A. We have read with a great deal of interest “ Present Day Banking 1948 and 1949” which has .just been published by the American Bankers As sociation, and we feel this is a real contribution to banking practice and helpful information about financial institutions of the United States. Since the “ Operating Earnings of State Com mercial Banks” are not available for 1948, we were impressed again with the figures for 1947 and noticed especially under “ Sources of Oper ating Earnings” that service charges amounted to $121,880,000 which is indeed a most sizable sum. Dividends paid by all state commercial banks for 1947 amounted to $137,411,000. Thus service charges for that year came within $15,531,000 of paying all the dividends which were paid out in that same period. The point to remember is that service charges should be just, they should be fair, and they should be nearly as uniform in any given area as it is possible to have them. Customers of banks are being educated to the fact that service charges if they are fair are a legitimate and a proper charge to be made by the banks for the service which the banks render. (D & W c J ía lid a ó J D L i The Shakespeare of India As we enter the New Year of 1949, the N orth B anker believes that your famous ‘ ‘ Sal utation to the Dawn” expresses a philosophy which can inspire us all to do our very best each day, because today and today only is the one point of time which for the moment we can really count as our own. western SALUTATION TO THE D A W N Look to this day! For it is life, the very life of life. In its brief course Lie all the verities and realities of your existence ; The bliss of growth The glory of action The splendor of beauty For yesterday is but a dream And tomorrow is only a vision, But today well lived makes every yesterday a dream of happiness And every tomorrow a vision of hope. Look well, therefore, to this day! Such is the salutation to the dawn. N o r t h w e s t e r n Banker, J a n u a r y , 1949 16 Central National Bank and Trust Company Fifth and Locust Street — Des Moines STATEMENT OF CONDITION AT CLOSE OF BUSINESS DECEMBER 31, 1948 ASSETS Cash and due f r o m Federal Reserve and other banks________ $29,781,935.49 , United States Govern mental Securities...... 22,349,507.61 Obligations of United States Governmental Agencies ___________ 2,223,846.83 $54,355,289.9 Municipal Securities............ ................. 7,026,254.50 Market Bonds................. ......... ............... 921,632.46 Other Investments................................ 260,001.00 Loans and Discounts.... ................ 24,302,219.62 D I R E C T O R S E. .F. B U C K L E Y President A. T. D O N H O W E Vice-President Overdrafts ............................................... 1,641.06 Stock Federal Reserve Bank............ 75,000.00 Accrued Interest Receivable............ 244,438.96 R O B E R T K. G O O D W I N President, Redfield B rick & Tile Co, Bank Premises and Equipment........ 590,142.79 W M . J. G O O D W I N Chairman, Board of Directors TOTAL ........................................... $87,776,620.32 H ARRY GOLDM AN President, C. C. T aft Co. W . J. G O O D W I N . JR. President, Des Moines Clay Co. H. F. G R O S S Chairman, Iow a M utual T ornado Insurance Assn. LI ABI LI TI ES Common B. R E E S JO N E S President, T ow n Mutual Dwelling Insurance Co. Stock......._....$ 1,250,000.00 Surplus ............................ 1,250,000.00 Undivided Profits........ 1,107,128.29 Other Reserves............ E D W . A. K I M B A L L E xecutive Vice-President, Iow a Manufacturers Assn. G U Y E. L O G A N 866,908.74 $ 4,474,037.03 Reserves for Taxes, Interest and Other Expense........... Discount 90,578.32 Collected.... ................ Deposits ................... TOTAL ................. 180,698.47 83,031,306.50 $87,776,620.32 U. S . G o v e r n m e n t se c u r itie s c a r r ie d a t $ 5 ,4 7 1 , 1 0 3 . 0 3 a re p le d g e d to se c u re U. S. W a r L o a n D e p o s it A c c o u n t , P u b lic Funds, and T ru st D e p a r t m e n t F u n d s. W A L T E R E. M U IR President, W in d ow Devices, In c. G E O R G E A. P E A K Real Estate J U L IA N A . P E V E R I L L President, H udson-Jones A uto Co. W A L T E R L. S T E W A R T Gibson, Stewart & Garrett F R A N K R. W A R D E N Vice-President ★ M e m b e r F e d e r a l D e p o s it In s u r a n c e N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C o r p o r a t io n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • • • • The integrity inherent in the name Allen-W ales on an adding machine is your guarantee of A C C U R A C Y , S P E E D and D E P E N D A B IL IT Y — three factors essential to satisfactory adding machine performance. ALLEN W WALES ALLEN-WALES ADDING MACHINE DIVISION OF THE NATIONAL CASH REGISTER COMPANY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 4 N E W MADISON Y O R K AVENUE 2 2 , N. Y . 19 W h at Leading fían tiers Say A boat Credit P olicies for Excerpts from A.B.A.'s Recent National Credit Conference To Organize Bank Credit Stimulating Production, Opposing Inflation " C r e d it P o lic y fo r 1 9 4 9 " By H E N R Y E. A T W O O D Presid ent, The First Natio nal Bank, Min neapolis HAT policy should we pur sue which is sound for the bank and sound for the borrower? Our inter ests are mutual . What considerations should be kept before us to control our loan position effectively? “1. We intend to continue to give care ful thought to loan requests to determine whether such loans stimulate production and distribution. “2. We believe that the volume of loans made and c ar r i e d should be related to capital, surplus, undi vided profits, and re serves. “3. We plan to keep our directors intimately informed as to the details of loans being made. “4. We make frequent analyses of the amounts of money being used by the various classifications of industry so that we will know how our money is employed and the trend from one period to another. “5. We maintain a check on all our commitments and lines of credit, together with the amounts being used. AVe want to know the amount for which our customers may call on us and be prepared to take care of them. “6. We regard as very valuable a periodic survey of every loan we carry, grading it as to quality. “7. We are not seeking term loans which add to the com petition for men and materials when costs are at a peak. “8. The ball has been taken away from us on consumer credit, but Regulation AV has created very little change in our terms for installment credit.” W " W h a t S h o u ld W e D o T o d a y ? " By W I L L I A M A. M A R C U S Senio r Vice Presid ent, American Trust Co., San Francisco Pr eside nt , S av in g s and M o r t g a g e Division of A.B.A. HAT should we do today? We should analyze our mortgage portfolios seeking the answers to these questions: Are the loans safe? Are they diversified? Are they written on a proper installment basis? Have they been made against conservative appraisals? Do they pro duce a revenue sufficient to meet our growing cost of doing business? Are all payments current? Are a large portion W ( https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of loans marketable? If we find negative answers to any of these questions, we should immediately set out to strengthen our lending and servicing procedures. “ Our housing and mortgage problems can be solved by cooperation between government and business, by a pool ing of energies bent toward supplying the country’s needs through work and production, by encouraging individual initiative, and by rewarding thrift. Our housing and mort gage problems can be solved by adopting measures that will promote the confidence of builders, lenders, investors, and the general public without undermining the stability of the nation.” " P r o s p e r i t y Throaty h M o d e r a tio n 33 By J O H N W. S N Y D E R S e c r e t a r y o f the Treas ury, W as hingt on , D. C. N EXTENDED prosperity can only be achieved by a policy of moderation—by encouraging a healthy busi A ness development while restraining the excesses of over buying, over-borrowing, and over-expansion which inevit ably would bring on a business depression. This policy of moderation has been and will continue to be the Ad ministration’s program.” "C a r a ts V ita l to N a tio n 33 By C. W. BA ILEY Pr eside nt , First Natio nal Bank of Clarksville, Tennessee HAT are the fu W ture agricultural price prospects? How can long term loans be handled? On what basis should loans be made? “ 1. In 1949, some lowering of prices of farm products may occur; but the income of the farmer should still be very good. While the prices of land are reported as being the highest in hi st or y — sl i ght l y a b o v e 19 2 0 — the amount of farm mort gage debt is under $5billion; and that is less than half of what it was in 1920. Refer ring to non-real estate debt, which might be classed as borrowing for production purposes, the total was $1,600,000,000 on January 1, 1948, and that was less (Turn to page 46, please) N o r t h w e s t e r n Banker, J a n u a r y , 1949 20 'fio## 11 > Ë H o n io Ê tu* re o s ì * O ur H ook Ë ïarn iiu js in Hi H T m Northwestern Banker Readers Give Their ideas on Promotional Projects for the Coming Year A NORTHWESTERN BANKER Survey N A SURVEY conducted last month by the N o r t h w e s t e r n B a n k e r among all banks in its territory, many bankers have given their ideas on the survey question, “ How We Plan to Increase Our Bank Earnings in 1949.” The methods and ideas ex plained in the accompanying replies are varied, but throughout all of them runs a note of caution so as to main tain the sound position in which bank ing now finds itself. Again, the oftrepeated word “service” is suggested as the best means of retaining busi ness and gaining new friends. Here are the replies received: E IG H T P L A N S T O IN C R E A S E E A R N IN G S 1. Substantial reduction in expenses. 2. Establish a bank insurance depart ment. 3. A loan policy that will avoid losses. 4. Increase rates on loans. 5. Give more and better service. 6. Get paid more for services given. 7. Extra service fee for mortgage in spections. 8. Greater use of bank facilities by community. "TIME TO BE CAUTIOUS" By L. L. A R E N D T C a sh i e r, Gibso n S a v in g s Bank "1949 OUTLOOK BETTER" By G. E. H E Y M A N C a s h i e r , First Natio nal Bank Dunnell, Minnesota “ I believe our plans should be on ‘How We Plan on Increasing our Serv ice to the Community” and would be more appropriate as we find that 1948 earnings were very satisfactory with the outlook for 1949 even better and without too much effort on our part, other than doing our best to serve our custmers individually as each need comes to our attention. “ This is a national bank in a small community of about 250 population, and although we have totals of near a million dollars, we do not have too large a territory so we must depend upon our personal services to each and every person with whom we come in contact. It seems that if we serve our borrowers, depositors and other customers properly, we not only sat isfy them but we show a nice profit along with it. We do not charge ex change like most of the surrounding banks, but do obtain a fair amount of insurance business to offset a part of what could be received from exchange if we were a state bank. “ Our efforts will be to hold down loans by discouraging borrowing only for needed constructive purposes. That is a service we owe to our bor rowers and will make for a better community.” N o r t h w e s t e r n Ba nker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Gibson, Iowa “Frankly, it is not my intention to concentrate too much on increasing our earnings for 1949. We have al ways had ample demands for loans to provide sufficient earnings but we feel that now is the time to be very cautious and now is the time to pre vent future losses. “ So now we are concentrating on the soundness of each loan and are making no plans for expanding our loan business but merely plan to take care of the sound credit needs of our community.” "PROMOTING SERVICES" By H. W. D A V ID First Natio nal Bank New Hampton, Iow a Cashier, “We have no specific plans for in creasing earnings in 1949. Our loans are definitely on the upswing and, further, we are stiffening interest charged for the first time in a number of years. We think it unwise to make a radical change in rates charged, as we feel this might make for hard feelings and a little more ‘anti-bank’ sentiment. Rather, we are merely stiffening up a bit on rates on all types of loans. “ It is our aim in 1949, rather than make an all-out drive for increased earnings, to make a drive for more general use of our facilities by the community. We feel that earnings will benefit as a result.” "INSURANCE OFFICE INCREASES EARNINGS" By A. W. P O W E L L C a sh ie r, The Roberts C ou nty Natio nal Bank, Sisseton, South Dakota “We have increased our earnings substantially by organizing an insur ance department under a G. I. He gives full time to new business, par ticularly to farm liability and life in surance. “ Using a cost of replacement chart on almost any insured building, a sub stantial increase can be obtained. “We will continue the same sub stantial charge that we have had fo r ) four years, and in line with all other banks, have a substantial increase in loans.” "SERVICE IS ANSW ER" By H. H. PETERS President, Bank of Yutan Yutan, Nebrask a “While more bank income is always desirable, the past few years have been generally profitable and satisfac tory to most banks. Loans at this time are high and adequate service charges are usually maintained. “ Prompt and efficient service, to gether with helpful suggestions in solving your customers’ problems, can never be overdone and it is my thought that the bank that makes this its creed, and in addition operates a sound and progressive institution, will continue to increase the number of its accounts and consequently increase its earnings.” "CONSTRUCTIVE AND CONSISTENT SERVICE" By L O U I S S C H R E C K C a s h i e r , Templeton S av in g s Bank Templeton, Iowa “We have no particular program in mind directed towards increasing our profits. We will continue our policy of meeting all applications for sound loans and giving the community a constructive banking service for a fair price. That, we believe, will insure the highest average profit over a pe riod of years.” 21 "EARNINGS GOING DO W N" By W I L E Y G R E E N Falls Bank Wauneta, Nebrask a C a s h i e r , W au n eta “ In our opinion net earnings of country banks will probably shrink during the year 1949 over the figures for 1948. “ Expenses are increasing on account of larger salaries, more costly sup plies, heavier local taxes. “There may be an increase in local loans but I rather doubt that, as live stock and farm products will be cheaper. “ Deposits will probably work a lit tle lower as our deposits are really numbers of cattle, hogs, bushels of corn and wheat. “Our present outlook for crop is satisfactory. Farm expenses are high er and income tax paid this year by farmers will be less than a year ago.” "HAVE TO SELL PUBLIC" By EBER V. FLINT C a s h i e r , A nd re w S a v in g s Bank Andrew, Iow a “ I believe we have perhaps had the cream the past two years and that we will really have to sell the public for any additional business we get in the future. “We have, however, opened an office in the town of Lamotte, which should bring us some additional business, both in deposits and loans. We have solicited farm loans in the community for the past few years and expect to continue. We would rather have our money in good old Iowa soil than any where el§e. We expect to hire some additional help to look after the busi ness we now have and see that we don’t miss some of the corners we have in the past.” REDUCE E XP E N S E S — During 1949 it appears that many bankers are going to apply that old maxim, “ A Penny Saved Is a Penny Earned,” to their bank operations. Some o f those commenting said officers were really going to scrutinize expenses this year, so that the savings could be applied to bank earnings. "EXPENSE SAVING" By W A R R E N G A R S T C a sh i e r, Home Sta te Bank Jefferson, Iow a “We have been studying details on our bank operations and think that we have made savings in time that will permit us to get along without replacing a girl who is to be married the first part of the year. To do this, we visited a number of other bankers, got a good many ideas, talked them all over with our associates in bank operation and applied or modified them to fit our work here. Expense saving seems to be one way a bank can increase its net without-'credit risks.’’ "KEEP EARNINGS LEVEL BY AVOIDING LOSSES" By B. B. W A T S O N "REDUCING EXPENSES" C a sh i e r, The First Natio nal Bank of By E. A S C H E L L “ Our efforts in 1949 will not be so much toward increasing our earnings but to hold them where they are by not having any losses. We think that is the important thing to stress in the current year, for most banks. “As of today our customers are in the best financial position they have ever been. Many are borrowing for proper purposes, but their borrowing is under control, both from their an gle and ours. We think borrowing for production, within reasonable lim its, or for distribution, is proper but when it comes to borrowing for in vestments at high prices we draw the line closely. We think our volume of loans will have a tendency to increase so that gives us an opportunity to screen them carefully. We do not plan any increase in interest rates. “The recent credit congress in Chi C a s h i e r , Sta te Bank of Portsmouth Portsmouth, Iow a “We fail to see where we could in crease our interest rate or our serv ice charges, and we have also reduced our interest rate on time certificates and savings accounts to 1 per cent per calendar quarters. “We are planning, however, to re duce our expense account, and to try and eliminate as much as possible any expense which we can cut out but, of course, salaries cannot be reduced un der present circumstances. We be lieve that buying in larger quantities will be the means of reducing the operating cost. We are also refusing to accept from non-customers deposits which they wish to place on time or savings accounts, and during the year 1949* no such deposits will be ac cepted.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Humboldt, Iow a cago, under the sponsorship of the American Bankers Association, was helpful in pointing the way to a coura geous but careful and flexible loaning policy for the individual bank. Let’s keep our banks in a liquid condition so we can loan to the good borrower in the tough years ahead.” "INCREASE LOAN RATES" By R. A. S W E E T Vice P re side nt a n d C a s h i e r , S tory County Sta te Bank, Story City, Iow a “At the close of 1948, I think most banks will find themselves fully loaned so far as good banking prac tices permit; therefore, in order to increase earnings for 1949, it would seem advisable and good policy to in crease loan rates. Then, too, as the net will be the important thing at the close of the year, I believe that a closer screening of present loans and loans we will make in 1949 is very essential. “ It would appear that most banks will experience some further decline in deposits during the coming year which will reduce our volume and have a direct bearing on earnings. In order to counteract this, it would seem necessary to step up our public rela tions program. This, of course, can be done in various ways, but probably the most effective is by giving more and better service and incidently get ting better paid for this better service. I believe that most of our banks can re-examine their service charge sched ule with the idea of making increases in some instances. Most of our sched ules'are based pretty much on the pre war dollar. “From all indications, 1949 will be a precarious year in business and (Turn to page 44, please) N o r t h w e s t e r n Banker, J a n u a r y , 1949 22 W h at Fía anfia t A d vertisers A re Thinkiai§ Highlights from Some of the Discussions at the Annual Convention of the Financial Public Relations Association "COOPERATION IN COMMUNITY AFFAIRS" By C H A R L E S J. M IL L E R Ex e cu tive Vice P re sid e n t First Natio nal Bank Meadville, Pennsylvania “ Local community building is probably the best level that exists on which business and labor can meet and really understand and work with each other. “Perhaps we should stop and ask ourselves a question. Are we satisfied with the leadership in our communi ties? Does that leadership reflect to our credit as long range serious think ing bankers and business men? If the answer is in the affirmative, I would say that free enterprise has been at work. If the answer is nega tive or doubtful I would suspect that your town has a group of business men who have turned their govern W ith ment over to the professional politi cian. It certainly is a truism that if you are not sold on your community and have no interest in it, you had better move, because as bankers our business will expand only as our com munity’s industries and business ex pand, because we are entirely depend ent upon pay rolls for the inventory of our business. Too many of us take the attitude of ‘let George do it.’ How many of us take committee chairman ships, become president of this and that, and then do nothing more than clip the newspapers to add to our scrapbooks? For goodness sake if you accept the job—do a job! When you advertise your business, advertise your community. Tell your local citi zens how fortunate they are to be a part of the community. Above every thing, be a good neighbor and I mean this in the neighborhood and business , »tinF .r .H .A . sense, as well as in the broader sense. When you start something, finish it. Communities become apathetic if noth ing happens; therefore, it is up to us to help in our community to plan for objectives that can be reached. Re member this, our hospitals, water works, garbage collection, street main tenance, city management, zoning, parking, flood control, housing, and many other civic things are all our problems. Good town facilities mean good living conditions. Good living conditions mean satisfied people, bet ter labor conditions, and general com munity welfare. “There is no group of men more capable of helping their communities than bankers. There is no place where business men can meet and be better understood by people than at the community level.” y \ \ "NEW BUSINESS DEVELOPMENT" in By W. H. B I S C H O F F A s s i s t a n t Vice P re side nt Old IN THE SU N SH IN E — At the le,ft, on the left, Robert Lindquist, vice president LaSalle National Bank, Chicago, and immediate past president of F P R A ; and Allen Crawford, vice president Bankers-Equitable Trust Company, Detroit, new president o f the Association. At the right, Harold P. Klein, vice president Iowa-Des Moines National Bank, Des Moines, and Frank R. Warden, vice president Central National Bank & Trust Company, Des Moines, and an Association director. N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 Natio nal Bank, Evansville, Indiana “During the short discussion period which followed the presentation of this subject, the following ideas were developed: “ 1. Where time and manpower are limited, it is better to cultivate pres ent customers than to venture far afield in trying to secure new and strange business. “2. Not everyone is sales-minded. It is important for the business develop ment officer to discover which officers and directors possess the required qualities to make calls on prospects and invite new business. “3. Some officers and directors are valuable to a bank in a capacity other than business development. Analyze personalities a n d utilize abilities where they function best. “4. The real test of the business de velopment officer is his ability to sell his own business development ideas to the officers and directors of his bank, and to inspire them to break away from their desks to make calls on prospects. “5. Officer and director cooperation in developing new business is often more difficult than organizing em- > V T h ese W e r e in 1— L eft to right, standing— Louis H. Northrop, assistant vice president, and Harry G. Duntemann, assistant cashier, both of the First National Bank, Chicago; seated— Mrs. Northrop; Miss Anna T. Olson, assistant cashier Live Stock National Bank, Omaha; Miss Ruth H. Gates, State Bank & Trust Company, Evanston, Illinois, and Mrs. Duntemann. 2— Glenn Yaussi, vice president National Bank of Commerce, Lincoln, Nebraska, and Mrs. Yaussi. 3— Mr. and Mrs. W illiam E. Sherrill. Mr. Sherrill is adver tising manager o f the First National Bank in St. Louis. ployes for new business campaigns. Query: Could it be that incentive prizes often are denied to officers?” "CONTESTS TO OBTAIN NEW BUSINESS" By REX V. LENTZ D i re c to r, S p e c i a l S e r v i c e s D e p a r t m e n t Mercantile Natio nal Bank, Dallas, Texas “Our goal in a recent contest was 4,764 new accounts and 10 million in new deposits. We finished with 6,375 new accounts and $14,329,397.88 in new deposits. It was a successful contest, and here’s the recipe: Three parts employe cooperation, one part organi zation, and a large tablespoonful of interesting prizes. “From our experience we feel that employe cooperation is absolutely es sential for the success of any new busi ness campaign. And it can’t be just ‘lip service’ cooperation, either. We went all out for giving the employes the top spots in our contest. They https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .H d w ly o , Too 4— Ade C. Boysen, and Frank H. Delaney, vice president— both of the First National Bank, St. Paul, Minnesota. 5— A part of the group attending the clinic on Banking Quarters, at the recent Financial Public Relations Association convention. 6— N. E. Pearson, assistant vice president La Salle National Bank, Chicago; Mrs. Arthur E. Dahl; Arthur E. Dahl, president Rapid City National Bank, Rapid City, South Dakota. helped conceive the program. They elected their own captains and other leaders, and they managed the cam paign. None of the officers or direc tors were eligible, but all of the offi cers and directors, without exception, cooperated wholeheartedly with the teams of which they were members and with individual employes. In the words of R. L. Thornton, chairman of the board, ‘This contest is the finest thing that has ever happened in our bank. It gave the bank an opportu nity to get better acquainted with thousands of newcomers to Dallas, and to show them that we are vitally in terested in them and their business problems. “ ‘It gave our employes, officers and directors a chance to work together as a big, fine-spirited family, and it gave us an opportunity to develop new busi ness and increase our value as an institution in the life of the commu nity.’ ” "EMPLOYE OPINION SURVEYS" By S. H. C H E L S T E D Vice Pre side nt , Peoples First Natio nal Bank Pittsburgh, Pennsylvania Banks were urged by Mr. Chelsted to “follow the example of some of the world’s largest industries in the use of confidential employe question naires to determine employe opinions of bank management and working con ditions.” He pointed out that “ In this highly competitive labor market with its many influencing forces, the employer should take steps to determine how the employe feels about his job. “Employes have shown themselves to be receptive to management sur veys when properly approached. When they realize that the surveys represent an honest determination to under stand their problems and a willingness to take the necessary action to alle(Turn to page 36, please) Northw estern Banker, J a n u a r y , 1949 24 l t i i n l ;v r s Y •hum's M u ir Vice President and General Manager Royal Bank o f Canada Montreal “ Results are not obtained by spasmodic attempts, but only by sustained effort” IAMES MUIR, vice president and vj general manager of The Royal Bank of Canada, with which lie has been associated for 37 years, is a unique person: unique in that he is normal in so many ways. Surrounded in his spacious office by self-chosen paintings depicting Canada from coast to coast, he gives the impression of a man witli long arms and far-seeing eyes, who, while keeping his fingers on the pulse of economics in Halifax and Victoria and Cuba and Buenos Aires, still at tends meticulously to the business in his immediate neighborhood. Indeed, he is the kind of man who can take time off to chat effervescently with a caller, yet no one ever sees his desk laden with papers. When James Muir moved to Mont real from Scotland 37 years ago he had neither influential friends nor business “ pull." He was a banker in Scotland and England, but his broad est experience has been with the Royal Bank. Besides his many apN o r t h w e s t e r n Banke r, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pointments in scattered districts in the Dominion, he has devoted some years to the operations of his bank in Latin America. James Muir was born in Peebles, residence of the ancient kings of Scotland. From his first ledger entry in the Moose Jaw Branch of the Royal Bank, he travelled through several western branches and the inspector’s department at Winnipeg before see ing service at the head office in 1917 and returning as inspector to the supervisor’s department in Winnipeg. First record of his work attracting the attention of senior executives was between 1920 and 1923, when Mr. Muir was assistant to the Quebec supervisor: from that point on, pro motion was rapid toward the post he now holds. In 1925 he went to New York, where for three years he served as assistant supervisor of the bank’s business in Central and South Amer ica. His duties in this post took him on visits to branches in Cuba, Brazil, Uruguay, Argentina, Peru and to other South American countries where there were not, at that time, branches of the Royal Bank. Back in Canada, he served for three years as manager of the Win nipeg Branch before being trans ferred to the head office in 1932. He was appointed assistant general man ager in 1935, general manager in 1945, and vice president in October 1948. In spite of his great strides' in this most conservative of businesses, Mr. Muir has retained liis keen sense of humor, and a quick smile that starts at his eyes and often bursts forth in sincere and uninhibited laughter. He is a friendly man, really likes people, and is the soul of courtesy. Above all, he is an under standing man. There’s no postponement in Mr. Muir’s office day. In his boyhood, he participated actively in sports, such as soccer, rugby, and amateur (Turn to page 42, please) 25 News and Views OF THE BANKING WORLD By C L I F F O R D DE PUY, P ublis he r HIS is to express a sincere “thank you” to our many friends from coast to coast who sent us Christ mas and New Years cards, engraved folders, calendars and personal letters, and to tell them all that their personal friendship and thoughtfulness of us is sincerely appreciated. T After all, what fun would there be in life if we didn’t have friends and continue to merit their goodwill and friendship throughout the years. So thanks again to all of you for thinking of us. Last October the Commerce Trust Company of Kansas City started a ten weeks’ drive for new accounts, with prizes for those employes bringing in Craig R. Smith, assistant vice presi dent of the Central Hanover Bank and Trust Company of New York sent out a very unique Christmas card show ing the “Original home of the Hanover Bank, constructed in 1837 and stand ing to this day as India House in Hanover Square, New York.” John AV. Snyder, secretary of the treasury believes that no recession is in sight and that “We undoubtedly have the essential foundation for an incomparable era of national prosper ity in the years ahead. I see no evi dence of the unbalanced conditions which, in the past, have typically pre ceded a recession.” J. Stewart Baker, chairman of the board of directors of the Bank of the Manhattan Company, New York, told the 150th annual me'eting of their stockholders recently, that the “Gross operating earnings for 1948 are esti mated at $22,800,000 which com pares with $20,275,000 for 1947. In terest on loans estimated at $11,750,000 will show an increase of about $1,900,000 as a result of a larger volume and somewhat higher rates. Interest and dividends on securities will approxi mate $6,900,000, about the same as 1947. “Net operating earnings are esti mated at $5,300,000 for 1948, compared with $4,118,000 in 1947, equal to $2.65 per share against $2.05 in 1947.” Mr. W illia m s and M iss Eubanks the greatest number. When the con test closed last month, there was every reason for celebration by the officers and bank staff. Shooting at a goal of 5,000 new ac counts, 5,226 were put on the books, with a total increase in deposits of $11,302,500. Of the 750 employes entered in the competition, Miss Ola Eubanks, recep tionist and assistant to executives, was the winner of the grand prize. Miss Eubanks brought 135 new ac counts into the bank. In the picture above, Joseph C. Williams, p r e s i d e n t of Commerce Trust, congratulates Miss Eubanks on her energy and good fortune. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Delmont K. Pfeifer, vice president of the National City Bank of New York, gives his opinion about the peg ging of Government bonds >and puts his remarks this way, “We have lost our unanimity in favor of pegging. A minority of us now believe that the pegging has been too stubborn, that there was a time while the pressure was oft" the pegs, when it would have been a good thing to back away a little to lower support prices in order to penalize the second wave of switch ing out of long Governments into other investments.” Ward AV. Dayton, managing partner of Holley, Dayton & Gernon of Chi cago, is also editor of their “Fortnight ly News Commentary” which is a very fine digest of current investment news. In a recent bulletin, Mr. Dayton pointed out that, “ Indications are that the downward trend of Retail Food Prices will continue. The Agriculture Department reports a sharp increase in cattle feeding, an indication of more plentiful supplies of beef this year. And bearing out the contention of many industry officials, General Foods’ board chairman Frances recently pre dicted that food costs will be lower in 1949.” 2.# N ea rs a i S erv ice James W. Hubbell, newly-elected board chairman of the Bankers Trust Company, Des Moines, is shown above (center), presenting William Ellison, vice president, with a gold watch in recognition of having com pleted 25 years o f service with the bank. W aiting at left to offer con gratulations is Scott C. Pidgeon, newly-elected president of Bankers Trust Company. J. C. Thomson, president of North west Bancorporation of Minneapolis in a recent letter to the N o r t h w e s t ern B a n k e r said, “ Each year follow ing the December meeting, the Direc tors and officers of Northwest Bancorporation sit down together in cele bration of the Christmas season. It is always an occasion of good fellowship and appreciation of the splendid par ticipation in our affairs by the mem bers of our board of directors. The enclosed second issue of the Banco Times was released at this luncheon, and I thought you would enjoy seeing it.” The Banco Times which is produced on the same “make-up style” as Time magazine is a very interesting and cleverly edited publication, which pictures news items and other points of interest concerning officials of the (Turn to page 33, please) N o r t h w e s t e r n Banker, J a n u a r y , 1949 3My Six Mtuies Fur investing Hank Funds And Some Suggestions on Investments Specifically Related to Current Conditions By R. C. EFFINGER Vice President Irving Trust Company New York City OR a commercial bank, a sound in vestment policy involves, in my opinion, largely adhering to the following six rules: F 1. Hold sufficient high-grade, readily marketable, short-term securities to provide funds needed from in vestments to meet possible de clines in deposits and increases in loans and legal reserves. 2. Hold no securities maturing in more than five years that are not of good quality and that the bank does not believe it can hold to maturity, and desires to hold to maturity for the purpose of stabil izing income; i.e., to serve as a hedge against lower interest rates. Do not compromise quality in search of income. 4. When the outlook is for rising interest rates, he slow to extend maturities beyond what is re quired to produce needed income. 5. When the outlook is for declining interest rates, act promptly to extend maturities, within the pat tern that fits the needs of the bank and the desires of its manage ment. (». At all times be in such a position as not to be disturbed by subse quent price movements, either up or down. The alpha and omega, the beginning and the end, of all rules for soundly investing the funds of a commercial bank are, in my opinion, the first and sixth rules given. I would like to dis cuss each of them briefly. First Rule The first rule requires periodic esti mates of funds that may be needed for these purposes. Making these estimates is time-con suming because it should be done fre quently and many things have to be considered. Pertinent factors include: the estimated flow of customers’ bal ances and the estimated needs of cus tomers for loans; the movement of de posits and loans of all banks, and banks in the same district as a group; gold and currency movements; Federal N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Reserve and Treasury policies; and the outlook for business for the coun try as a whole, and the area concerned in particular. R. C. EFFIN G E R “ Adopt An Investment P olicy” Taking as many of these factors into consideration as time, facilities, and experience make practical, estimates should be made at least each quarter of the minimum of deposits and the maximum of loans likely to be wit nessed over the next two years on the assumption that the bank will be subject to a decline in its deposits and a rise in its loans. Allowance should be made for wide margins of error since it is always possible that loans may rise and deposits may decline more than anticipated. The next step is to add the differ ence between the current amount of deposits and the “deposit minimum,” the difference between the current amount of loans and the “loan maxi mum,” and the amount by which it is thought legal reserves may be in creased. The total represents the esti mated amount of funds that may be needed to meet declines in deposits and increases in loans and legal re serves. To determine how much may be needed from investments for these purposes, there should then be de ducted free cash balances with banks, legal reserves that would be released if deposits declined to the estimated “deposit minimum” and such liquid assets as prime commercial paper, bankers acceptances and brokers call loans, if any. The remainder will equal the amount of investments in high-grade, readily marketable, short term securities that the bank should hold. While short-term securities may be defined as those having a maturity date within five years, in my opinion only those maturing within two years are suitable for employing funds that may be needed to meet declines in deposits and increases in loans and legal re serves. Issues maturing in more than two and less than five years should, in the main, be of the character that permits r e a dy convertibility into shorter term issues, in case holdings of such obligations should prove in adequate for liquidity needs. The Sixth Rule The sixth rule, which calls for being in such a position at all times as not to be disturbed by subsequent price movements, either up or down, is a catchall rule and a check. In furtherance of this rule is the suggestion that, if it has not already done so, management reach the un qualified decision to carry United States Government securities at amor tized cost. First, the practice is approved by banking authorities. Second, it de ceives no one and fairly represents the dollars that will be received upon the liquidation of these assets if held to maturity. Finally, the income from such securities is reported to stock holders exactly as it is reported to the tax authorities. This seems to me to indicate clearly the propriety and desirability of carry(Turn to page 55, please) 27 Sbcd&mswl 4ß imdiidon December 31, 1948 RESOURCES Loans and Discounts..................................... $ 29,620,078.20 Overdrafts ....................................................... 729.44 State and Municipal Bonds........................ 9,275,339.15 Corporation Bonds ....................................... 1,393,509.55 Stock in Federal Reserve Bank.................. 150,000.00 599,000.00 Bank Office Building..................................... Furniture and Fixtures................................. 1-00 345,389.44 Income Earned But Not Collected.............. Bonds of United States and Government Agencies $59,864,012.73 Due from Federal Reserve Bank .............. 24,591,928.21 Cash and Sight Exchange 27,561,398.24 112,017,339.18 $153,401,385.96 LIABILITIES Capital Stock..................................................$ 2,500,000.00 Surplus ............................................................ 2,500,000.00 2,404,778.02 Undivided Profits ......................................... Reserve for Contingencies........................... 965,366.32 Accrued Taxes, Interest and Other Expenses ......................................... 168,682.31 Dividends Declared andUnpaid................ 50,000.00 U. S. Government Deposits ...................... $ 3,803,750.95 Deposits ........................... 141,008,808.36 144,812,559.31 $153,401,385.96 United States Government and other securities carried at $15,289,409.31 are pledged to secure public and trust deposits and for other purposes required by law. The Omaha National Bank M e m b e r F e d e r a l D e p o s it In s u r a n c e C o r p o r a t io n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nor,/»western Banker, J a n u a r y , 1949 28 W hat Th vi i' StaivSh atv From Statements Received as This Issue of the NORTHWESTERN BANKER Goes to Press (L ast three figures om itted) December 31 , 1948 D ecem ber 31, 1947 IL L IN O IS — Chicago Deposits Loans Deposits Loans Am . Nat. B & T Co. $ 220,237 $ 65,622 $ 227,789 $ 64,241 Central N ational . . 61,532 17,157 63,482 17,990 City Nat. B & T Co. 321,945 71,350 332,345 83,844 Cont. Illinois B & T 2,159,927 458,735 2,229,664 490,000 D rovers N a t’l B k ... 80,573 9,310 79,583 12,127 D rovers Tr. & S a v.. 30,528 5,217 30,165 4,625 First N a t io n a l......... 2,078,525 844,049 2,153,197 797,885 H arris Tr. & S a v .. . 508,577 169,572 508,356 167,471 LaSalle National . . 71,786 15,505 61,866 12,150 Live Stock N a t’l . . 54,692 11,555 61,413 11,537 N orthern Trust Co.. 656,262 91,571 622,270 104,376 D ecem ber 31, 1948 St. Joseph Deposits Loans Am erican N at’l . . . . 23,267 5,824 F irst N at’l ............... 30,463 4,282 F irst St. Joseph Stock Yards . . . . 10,171 1,589 T ootle-L acy N a t’l . 18,114 3,290 St. Louis F irst N at’l ............... 442,114 178,559 M ercantile Comm. B & T Co............... 342,493 121,659 M ississippi V alley Trust C o................. 213,402 86,447 IOW A— Des Moines Bankers Trust Co.. . Capital City St. Bk. Cent. Nat. B & T Co. D. M. B & T Co.. . . F irst Federal S t .. . . Ia.-D es M. N at’l . . . Iowa S t a t e ............... V alley B & T Co.. . N EBR ASKA— Lincoln 57,986 8,000 83,031 7,764 3,151 108,862 6,635 17,147 15,655 2,786 24,302 2,343 401 24,786 3,667 8,458 55,638 8,672 77,596 7,910 3,300 103,317 6,236 17,239 14,394 2,360 28,826 2,114 375 22,688 4,007 9,436 Sioux City First National . . . . Live Stock N at’l . . . Security N at’l . . . . T oy National ......... 18,861 26,443 26,112 23,486 5,857 4,271 7,558 5,573 20,096 30,432 26,955 26,455 5,932 3,882 5,922 3,685 Continental N a t’l . . First N at’l ............. N at’l Bk. o f C o m ... D ouglas County Bk. F irst N at’l ............... Live Stock N at’l . . . Omaha N at’l ........... Packers N a t’l ......... South Omaha Sav.. Stock Yds. N a t’l . . . United States N a t’l N E W YORK CITY National Bank o f B u r lin g t o n ........... Cedar Rapids— M erchants N at’l. Clinton— City N at’l D avenp’t B & T Co. Ottumwa— Union B & T Co.. Dubuque— Am er. Tr. & S a v .. National Bank o f W aterloo ............. W aterloo Sav. Bk. . Bankers Tr. C o . . .. Bank o f the Manhattan C o . . .. Central H anover B & T Co............... Chase N a t’l ............. Chemical B & T Co. Guaranty Tr. C o .. . . Irvin g Tr. Co.......... M anufac’rs Tr. Co.. N at’l City Bank. . . New Y ork Tr. Co.. . Public N a t’l ........... 3,160 10,347 2,706 77,541 14,188 73,929 12,460 3,108 22,189 88,092 14,710 74,734 11,965 3,195 18,509 14,311 4,834 14,439 4,359 19,420 4,292 18,587 3,465 23,941 17,629 6,632 4,795 25,095 19,363 6,559 4,348 M INNESOTA— Duluth F irst and Am . N at’l 71,332 Northern Minn. N at 45,639 17,090 10,284 68,591 40,831 15,645 9,386 55,100 108,382 8,861 18,700 110,236 148,957 372,735 31,706 60,361 362,260 48,405 95,281 7,656 18,350 108,180 Minneapolis Farm . & Mech. Sav. F irst N a t’l ............. M arquette N at’l . . . Midland N at’l . . . . N orthw estern N a t’l St. Paul A m erican N a t’l . . . Em pire National . . F irst N at’l ............... Stock Y ards N at’l. . 150,772 341,122 32,655 57,300 347,625 76,295 26,964 304,244 17,551 9,155 7,918 90,598 3,634 M ISSO U R I— Kansas City City N at’l B & T Co. 137,498 386,584 Com m erce Tr. C o .. . 64,760 Inter-State N at’l . . 52,091 110,934 28,089 N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 87,623 27,929 303,206 19,939 148,353 41-5,900 69,189 9,412 7,604 102,537 3,341 52,274 117,451 18,250 13,095 19,103 1,477 2,221 454,151 179,552 337,097 116,062 211,111 91,334 29,330 47,246 33,567 5,984 7,603 12,722 29,663 48,635 38,969 5,444 5,952 8,129 8,740 83,958 61,499 144,812 10,031 2,170 24,422 71,448 1,752 19,580 20,862 29,620 1,927 1,706 4,855 16,305 8,064 87,442 69,524 142,340 9,909 2,174 26,861 69,275 1,546 19,711 20,647 29,144 1,686 1,545 4,326 13,698 Omaha Other Iowa Banks 10,360 D ecem ber 31, 1947 Deposits Loans 25,373 4,820 32,361 4,319 1,325,472 571,153 1,483,951 623,056 1,127,930 455,974 1,140,003 432,610 1,400,785 4,237,000 1,435,190 2,330,237 1,113,182 2,223,383 4,643,000 642,398 515,990 432,451 1,482,834 560,799 1,034,441 429,048 623,902 1,422,000 256,426 140,307 1,492,340 4,477,562 1,284,087 2,451,659 1,072,860 2,320,057 4,874,418 729,182 544,925 416,356 1,324,264 449,401 851,405 377,810 498,100 1,215,660 241,716 124,181 6,313 5,263 11,009 22,000 18,792 47,087 5,506 3,421 9,165 1,783,442 458,511 SOUTH DAKOTA— Sioux Falls F irst N at’l ............. N a t’l Bk. o f S. D .. . N orthw est Sec. Nat. 23,318 18,056 43,643 OTHER BANKS Bank o f M ontreal, Canada .................. Royal Bk. o f Canada, M ontreal ............. F irst W ise. N at’l Milwaukee ........... Bank o f Am erica, San F rancisco . . . C alifornia Bank, Los A n geles . . . . Crocker F irst N a t’l, San F r a n c is c o ... Secu rity-F irst N a t’l o f Los A n g e le s . . . 1,650,000 2,067,489 657,458 1,934,186 567,038 520,790 97,646 522,356 91,666 5,639,523 2,807,070 5,467,199 2,492,980 431,000 107,770 452,165 97,240 320,275 84,158 326,551 79,347 1,619,817 418,458 1,650,555 377,167 29 A Ae LIVE STOCK 'Aa/icnei/ BAJNfK UNION STOCK YARDS . TELEPHONE YArds 7-1220 fjP / a fen ten / c/ ' ^ m id i/ icn Close of Business— Decem ber 31, 1948 RESOURCES Cash and due from banks........................................$ 1 7 ,9 7 3 ,9 5 7.36 U. S. Treasury securities (Average maturity less than 18 months )........................... 25,7 5 7 ,7 0 2 .8 0 State and municipal securities ( Average maturity less than 2 y e a r s ) ............................. 1 ,4 2 7 ,0 5 8 .3 3 Other marketable bonds.......................................... 3 1 8 ,8 0 4 .7 3 Loans and discounts.................................................. 11,5 5 4,9 5 6 .4 2 Federal Reserve Bank s t o c k ................................. 7 5 ,0 0 0 .0 0 Bank building............................................................... 2 7 5 ,0 0 0 .0 0 Interest earned, not collected................................ 12 5,5 84 .1 8 Current receivables and other assets................... 8 8 ,6 7 5 .7 7 Total......................................................................... $ 5 7 ,5 9 6 ,7 3 9 .5 9 LIABILITIES Capital..............................................................................$ 1 ,0 0 0 ,0 0 0 .0 0 Surplus............................................................................. 1 ,5 0 0 ,0 0 0 .0 0 Undivided profits and reserves............................. 3 5 0 ,2 1 5 .7 9 Unearned discount..................................................... 5 4 ,3 4 7 .8 7 Deposits.......................................................................... 5 4 ,6 9 2 ,1 7 5 .9 3 Total......................................................................... $57 ,5 96 ,7 39 ^5 9 -T io a tr / c -£ Frederick H. Prince John W. A ustin Arthur G. Leonard Treasurer, Union Stock Yard & Transit Co. President, Union Stock Yard & Transit Co. I van E. Bennett W illiam W ood Prince Vice-President Trustee, Central Manufacturing District RICHARD H AC K E TT Ralph M. Shaw General Manager, Central Manufacturing District IVinston, Strawn, Shaw & Black Thomas e . W ilson O rvis T. H enkle Chairman o f the Board fVilson & Co., Inc. Industrialist D avid h . Reimers President S E R V I N G A G R I C U L T U R E AND I N D U S T R Y S ftatce 4 8 6 8 M E M B E R 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 t h w e s t e r n Banker, J a n u a r y , 7949 30 LEGAL 0 an Title to Tanti Ht* I Itiitnt*ti 3 it»rt*it/ Throat/It l*ossi*ssion? Q . Peterson, a Minnesota banker, owned a farm in that state which had .been Iiis family homestead for a long period of time. It was some 100 miles from where he resided and a neighbor had been permitted to raise crops on a certain part of the land for a num ber of years, such number exceeding the period required by statute to es tablish title by adverse possession. Did the neighbor acquire title to the tract farmed by him through adverse possession as a result of his activities thereon? No. Mere possession is not enough to establish title to land by adverse possession. Where an original entry and subsequent occupancy is permis sive, as was the case here, the statute does not begin to run against the legal owner until an adverse holding is de clared and notice is brought to the knowledge of the owner. The asser tion of adverse title need not be always expressly or affirmatively declared, but may be shown by circumstances. It must, however, be clear and unequivo cal and nothing of that sort was in volved in this instance. Q . Brown, a Nebraska banker, and his wife .jointly owned their city home in that state. The municipal author ities sought to make certain street im provements in front of it. Brown and some of the other abutting property owners filed objections thereto. Objec tions by half or more of such owners within a certain time would stop the project. Tn determining whether a majority objected should Brown’s wife, who did nothing regarding the matter, be counted as joining with him in his objections? Yes, according to a recent Nebraska Supreme Court decision. In so hold ing the Court pointed out that there is a conflict of authority throughout the country on the problem, but that the result obtained by holding as it did appeared to be the proper one.. The ruling incidentally, may be sum marized by saying that, where only one of two resident joint tenants of land files objections to the creation of N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 194 9 This and Other Timely Legal Questions Are Answered by the LEGAL DEPARTMENT of the NORTHWESTERN BANKER a street improvement district by a city, the tenant objecting is presumed to have done so as a representative of the joint tenancy unless something to the contrary appears. G )- Morton and Green, a banker, be came involved in a controversy over who was entitled to the proceeds of an insurance policy on the life of Mc Cormick, who had died. The insur ance company recognized the validity of the policy and ¡laid the proceeds into court so that it could be deter mined who, of the two, should receiv e them. Morton sought to contend in the proceedings that Green was not entitled to recover because he had no insurable interest in McCormick’s life. W as Morton entitled legally to raise such a contention under the general rule applicable in such situations? No. The general rule on these mat ters is that, after an insurance com pany has recognized the validity of a life insurance policy by paying the amount thereof into court, adverse claimants to the funds may not raise the objection of insurable interest. Lack of insurable interest may be raised only by the insurer. Illinois, Indiana, Kansas, Louisiana, Michigan, Mississippi, Missouri, Ohio, Wisconsin and the federal courts have so held. Q. Egan, a banker, owned a South Dakota ranch. The board of equaliza tion of the county in which it was lo cated made certain determinations of value for tax assessment purposes of some of the land. Egan contended that the value should be the same as the going rates at which the county was selling land that it had taken in because of delinquent taxes. Should be be sustained in such contention? No. The South Dakota Supreme Court recently made the specific point that the determination of the value of land for tax purposes by the applica tion of a standard of value closely ad justed to fit prices at which the county has sold similar lands acquired hy tax deed is improper. Such sales are af fected by elements which do not enter into similar transactions made in the ordinary course of business. Q . It is not uncommon in real estate transactions for a grantor to sign and acknowledge a deed in which the name of the grantee is left blank. Where this occurs and the grantee’s name is subsequently inserted without the grantor authorizing such action in writing is the conveyance invalid in some states? Yes. Where a deed is executed in blank as to the grantee’s name and the name of the grantee is subsequently fitted in without the written authority of the grantor, the deed is invalid in some states. Arkansas and South Da kota are among the jurisdictions in which it has been held that written authority to fill in the blank is neces sary. In others, Minnesota and Mis souri being among them, verbal authority is held to be sufficient to au thorize the insertion. Q . A trust officer of an Iowa bank was settling the estate of a deceased former depositor who had named the bank executor under his will. For a period of time prior to his death the decedent had a young fellow, not a member of his family, work for him. The arrangement was a rather loose one under which no money had passed and the young fellow filed a claim for fbe reasonable value of such services against the estate. Would an obligtion to pay be implied? Yes. In a recent decision involving analogous facts the Iowa Supreme Court reiterated that it is well settled law in that state that, where one ren ders valuable services to another who accepts the same, and' who is not a member of the same family, an implied (Turn to page 32, please) 31 NATIONAL MECHANIZED ACCOUNTING For every bank, large or small, the National Central Control and Proof Machine is the answer to two basic problems: (1.) the proving of all incoming items; (2.) the maintenance of an even flow of work to all departments throughout the day. Many small banks, some handling even as few as 1,000 items a day, find their National Central Control and Proof Machine indispensable. One large bank uses 69 of these machines! In addition to the National Proof Machine, National offers an efficient, mechanized answer to every bank accounting problem. Of the 100 largest banks in the United States, 94 use Nationals! Thousands of smaller ones use them, too. Does your bank? https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis National provides a complete line of accounting machines to meet the needs of every department of every hank, large or small. Thei/re all described in an illustrated 64-page booklet, which your local National representative will be happy to give you. N o r t h w e s t e r n Banker, J a n u a r y , 1949 32 obligation to pay therefore will be implied. Guaranty Trust Company o f New York 140 Broadway Fifth Ave. at 44th St. Madison Ave. at 60th St. LO N D O N • P A R IS • Rockefeller Plaza at 50th St. BRU SSELS Condensed Statement of Condition, December 3 1, 1948 RESOURCES Cash on Hand, in Federal Reserve Bank, and Due from Banks and Bankers . $ 6 6 2 ,4 3 9 ,6 4 0 .6 4 U. S. Government Obligations 9 5 9 ,6 1 0 ,6 3 7 .8 9 Loans and Bills Purchased 1 ,0 3 4 ,4 4 0 ,9 8 0 .5 4 Public S e c u r i t i e s .......................... $ 8 1 ,9 9 0 ,6 7 8 .6 8 Stock o f Federal Reserve Bank . 9 ,0 0 0 .0 0 0 .0 0 Other Securities and Obligations . 1 0 ,5 4 6 ,0 9 6 .2 0 Credits Granted on Acceptances . 1 1 ,4 9 0 ,9 9 5 .8 9 Accrued Interest and Accounts Receivable . . . . . . . 8 ,6 0 7 ,8 9 7 .6 7 Real Estate Bonds and Mortgages 1 ,7 7 6 ,6 4 6 .3 8 1 2 3 ,4 1 2 ,3 1 4 .8 2 Bank P r e m i s e s ....................................................................... 4 ,7 5 6 ,5 9 1 .7 8 Other Real E s t a t e ................................................................. 16,929.41 Total R e s o u r c e s ..........................................$ 2 ,7 8 4 ,6 7 7 ,0 9 5 .0 8 LIABILITIES C a p i t a l ............................................. $ 1 0 0 ,0 0 0 ,0 0 0 .0 0 Surplus F u n d ................................ 2 0 0 ,0 0 0 ,0 0 0 .0 0 Undivided P r o f i t s .......................... 6 6 ,8 9 0 ,3 3 3 .2 6 Total Capital Funds $ 3 6 6 ,8 9 0 ,3 3 3 .2 6 D e p o s i t s ............................................. $ 2 ,3 1 1 ,1 3 8 ,3 7 5 .3 6 Treasurer’s Checks Outstanding . 1 9 ,0 9 8 ,3 7 3 .3 7 Total Deposits . . . . 2 ,3 3 0 ,2 3 6 ,7 4 8 .7 3 Acceptances ........................................ $ 1 9 ,8 8 5 ,1 1 0 .8 6 Less: Own Acceptances Held for I n v e s t m e n t .......................... _____7 ,9 6 7 ,0 4 4 .2 1 $ 1 1 ,9 1 8 ,0 6 6 .6 5 Dividend Payable January 3, 1949 3 ,0 0 0 ,0 0 0 .0 0 Items in Transit with Foreign . B r a n c h e s .......................... ...... 1 2 0 ,2 9 7 .7 6 Accounts Payable, Reserve for Expenses, Taxes, etc. . 7 2 ,5 1 1 ,6 4 8 .6 8 8 7 ,5 5 0 ,0 1 3 .0 9 $ 2 .7 8 4 .6 7 7 .0 9 5 .0 8 Total Liabilities Securities carried at $102,231,549.56 in the above Statement are pledged to qualify for fiduciary powers, to secure public moneys as required by law, and for other purposes. J. LUTHER CLEVELAND Chairman o f the Board W ILLIAM L. KLEITZ President DIRECTORS GEORGE G. ALLEIN Director, BrilishAmerican Tobacco Company, Limited, and President. Duke Power Company W ILLIAM B. BELL President, American Cyanamid Company F. W. CHARSKE Chairman, Executive Committee, Union Pacific Railroad Company J. LUTHER CLEVELAND Chairman of the Board W. PALEN CONWAY CHARLES P. COOPER President, The Presbyterian Hospital in the City of New York W INTHROP M. CRANE, Jr. President, Crane & Co., Inc., Dalton, Mass. STUART M. CROCKER President, The Columbia Gas System, Inc. JOHN W. DAVIS of Davis Polk Wardwell Sunderland & Kiendl CHARLES E. DUNLAP President, Berwind-White Coal Mining Company GANO DUNN President, The J. G. White Engineering Corporation W ALTER S. FRAN KLIN Executive VicePresident, The Pennsylvania Railroad Company LEWIS GAW TRY JOHN A. H ARTFORD President, The Great Atlantic & Pacific Tea Company CORNELIUS F. KELLEY Chairman of the Board, Anaconda Copper Mining Company MORRIS W. KELLOGG Chairman of the Board, The M. W. Kellogg Company W ILLIAM L. K LEITZ President CHARLES S. MUNSON Chairman, Executive Committee, Air Reduction Company, Inc. WILLIAM C. POTTER GEORGE E. ROOSEVELT Retired o f Roosevelt & Son EUGENE W. STETSON Chairman, Executive Committee, Illinois Central Railroad Company THOMAS J. WATSON President, International Business Machines Corporation President, General Electric Company ROBERT W. WOODRUFF Chairman, Executive Committee, The Coca-Cola Company Me?nber Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHARLES E. WILSON Q. Leeds, a banker, owned and op erated a farm. He secured from the Federal Crop Insurance Corporation insurance on his wheat crop. The ap plication and other papers did not men tion that part of it was reseeded on winter wheat acreage. Leeds told the committee acting for the Corporation that it was and they told him it was insurable. Actually it was not, and there was a regulation of the Corpora tion distinctly providing that such crops were not insurable. Neither Leeds nor the committee knew this. A loss occurred due to drought. The Corporation discovered the situation relative to the reseeding and refused to pay as to the part of Leeds’ claim which was so involved. Should it he sustained in that position? Yes. The Federal Crop Insurance Corporation is not bound by the as surance given to a farmer by its local agents that his crop was insurable where a valid regulation precluded coverage. The rules of law whereby private insurance companies are ren dered liable for the acts of their agents are not applicable to the Federal Crop Insurance Corporation. The United States Supreme Court, four justices dissenting, has so held in a recent de cision. 1 Q. The daughter of a North Dakota hanker entered into a contract with a school district in that state to teach for a year. By statute and under the contract the school could be discon tinued if the average attendance be came less than six pupils for ten days. There were only the children of two families in attendance. Difficulties de veloped between the teacher and the president of the board of education who headed one of the families. He felt that she should he discharged for incompetency, withdrew his children from the school, and prevailed on the other family to temporarily suspend the attendance of their children throughout a ten day period. There after the children of the non-feuding family return to the school, no alter native schooling having been provided, and the teacher taught them. Was she entitled to collect her salary under the contract? Yes. What was attempted was to discharge the teacher for cause by moving to close the school. Such was ineffective because it was not the right method. North Dakota laws, as do the laws of most states, provide regu lar methods for the removal of a teacher for cause. Since those laws ♦ 33 were not followed the teacher quite properly treated with the school as not having been discontinued and going hack and teaching there. For such activities she was entitled to be paid. C a lifo rn ia B a n k ^ ^ » Q. It is not uncommon for real es tate located in municipalities to be restricted by deed covenant to use for residential purposes only. Where such restrictions do not go further, as would be the case if only one family resi dences were specified, can apartment houses, which are used exclusively for residential purposes, be erected on the real estate as a general rule? Yes. The erection of an apartment house to be used exclusively for resi dences is generally considered not pro hibited by a restriction of property to residential purposes. Alabama. Georgia, Illinois, Kentucky, Michigan and Ohio are among the states in which this general rule has been recog nized. In applying it, the courts point out that such covenants are not to be enforced beyond the fair and natural meaning of the words used, read in the light of the circumstances under which they were employed. WE INVITE A C C O U N T S I N D I V I D U A L S • SE N D various banks which make up the Northwest Bancorporation. In a recent article in the Washing ton Post which is reproduced in “Banco Times,” it had this to say about Mr. Thomson, “He’s been presi dent of the bank holding company for the past 15 years. No ivory-tower banking executive, Thomson hops around his banks to see what’s going on and to keep in touch with the grass roots. He’s covered hundreds of thousands of miles by air. Besides running tbe banking chain and par ticipating in the research and plan ning activities of the CED, the busy banker and father of two, finds time to participate in local public affairs. He’s beaded a number of fund-raising committees, war bond drives, and has been a trustee of Westminster Presby terian Church of Minneapolis for some 25 years. Cameron Thomson is never too busy to take on another job. He thrives on hard work.” Dividend The board of directors of the City National Bank and Trust Company of Chicago has declared a regular quar terly dividend of $1.50 per share of stock, payable February 1, 1949, to shareholders of record on January 20, 1949. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A N K S , Y O U R C O R P O R A T IO N S , P A C IF IC <S ta te m e n t C O A S T A N D B U S I N E S S ec. 31,1948 c RESOURCES Cash and Due from B a n k s ......................................................$105,655,768.02 United States Government Securities..................................... 2 13 ,2 9 7 ,15 2 .7 3 Obligations of Other Federal Agencies . . $ 4,197,330 .92 State, County and Municipal'Bonds . . . 15,679,705.66 Other Bonds and Securities................................... 434,010 .19 2 0 ,311,0 4 6 . 11* Federal Reserve Bank Sto ck...................................................... 390,000.00 Ownership of California Trust C o m p a n y ............................. 1,4 7 5,32 4 .6 6 f Loans and Discounts.................................................................. 107,769,992.62 Bank Premises, Furniture and F ix t u r e s ................................. 1,39 6 ,319 .32 Earned Interest R e c e iv a b le ...................................................... 1,8 12,292.8 9 Customers’ Liability under Letters of Credit and Acceptances 3,308,992.85 Other Resources............................................................................. 254,883.20 T o t a l .............................................................................................. $4 55,6 71,773.0 6 LIABILITIES N E W S A N D V IE W S (Continued from page 25) FRO M US Deposits: Demand...........................................$268,372,083-94 T i m e ............................................. 150,315,009.84 United States WarLoan Deposit 4 ,29 1,419 .50 Other Public Funds..................... 8,258,939-83 $ 4 3 1,2 3 7 ,4 5 3 .11 Reserve for Interest, Taxes and E x p e n se s............................. 1,8 37,370 .57 Unearned Interest Collected...................................................... 1,158 ,396 .0 7 Letters of Credit and A c ce p ta n c e s......................................... 3,336 ,813-9 3 Capital S t o c k ................................................. 6,500,000.00 Surplus............................................................. 6,500,000.00 Undivided P r o fits ......................................... 5,10 1,739 .38 18 ,10 1,739 -38 T o t a l .....................................................................................................$455,671,773.06 *$19,846,491.74 pledged, according to law, to secure Public Funds and Trust Deposits. fCalifornia Trust Company—owned by California Bank and devoted exclusively to trust service— has Capital of $1,000,000.00, Surplus of $507,000.00 and Undivided Profits of $260,037.82. OFFICERS F R A N K L. K IN G , President Senior Vice President Vice President and Counsel ALLAN H A N C O CK CH AS. E. D O N N E L L Y Vice Presidents W. F. BRANDT ARTHUR T. BRETT W. WAYNE GLOVER T. E. IVEY, JR. G. M. CHELEW F. S. HANSON F. M. MAGEE H. J. MENDON JOSEPH MAGOFFIN B. B. ODELL F. HOWARD RUSS, JR. FE DER AL RESERVE SYST EM H. E. HUDSON J. G. MAULHARDT C. C. PEARSON J. A. SHINE CLIFFORD TWETER MEMBER C. C. D e PLEDGE W m . HEUER, JR. A. H. SMITH R. A. REID J. H. STEENSEN O. S. AULTMAN, Cashier 8c FE DER AL DE PO SIT INSURANCE Northw estern CORPORATION Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATEM ENT OF C O N D IT IO N at close o f business DECEMBER 31 , 1948 RESOURCES LIABILITIES Loans and D iscounts............... Capital Stock (Common) C .C .C . Loans ............................ Municipals and Other M arket able Securities ................... Surplus (Earned) Stock in Federal Reserve Bank Undivided Profits Banking House and Fixtures. . Reserve for Taxes, Interest, etc. Other Real Estate..................... Interest Accrued on Govern ment Securities, etc............ Unearned Discount U. S. Government Securities . . . .$ 14,663,62! Deposits Cash and Sight Exchange . . . . Dividends Payable December 3 1 , 1948 24,144,02] Total Total OFFICERS and DIRECTORS H enry C. K arpf President W ade R. H. K roeger R. M artin Paul H ansen W . D ean V ogel Vice President Vice President Vice President Vice President Comptroller Cashier A lbert R. Stelling Asst. Cashier and Trust Officer Asst. Cashier V ictor N ielsen Asst. Cashier H. B. Bergquist Coal and Grain James L. Pa x t o n , Jr . President, PaxtonMitchell Co. L. S. B urk Chicago Vice President A rmand S. C haves C. G. P earson L. V. Pulliam H. H. Echtermeyer Elmer C. O lson Louis M arshall C. D illon Asst. Cashier Jas . J. Fitzgerald Pres. Commercial Sav. & Loan Ass’ n H erman K. Schafer President. Maney Milling Co. M arvin R . W erve B arta Asst. Cashier Asst. Cashier and Asst. Trust Officer Asst. Cashier L ester E. Souba Auditor Jo h n R. Jirdon Livestock & Grain Morrill. Nebr. C arl A. Sw anson President, C. A. Swanson & Sons rPora L eo T. M urphy Vice President Allied Mills, Inc. J. L. W elsh Butler-W elsh Grain Co. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JANUARY 1 nnouncuicf T H E LIVE S T O C K N A T I O N A L ’ S Internal Operation Service e r v ic e Instituted by our Correspondent Banking Department to assist our banker friends in operational problems. Another specialized service which we are prepared to offer you during 1949. Y O U R INQUIRIES ARE C O R D IALLY IN V IT E D C o rp o r a t io n In s u r Northwestern ® 36 K m p i a a e s M a k e l k r i s / m a s H IG H L IG H T S F R O M FPRA M E E T IN G f i s (Continued from page 22) viate them, then the employe cooper ates wholeheartedly and expresses himself frankly. “While there are many effective ways to obtain employe opinions, a simple questionnaire sent to the home of the employe, requiring no signa ture, and entirely devoid of identifica tion, is one of the most effective. The questions should be so worded that in most cases a simple ‘yes’ or ‘no’ answer can be given.” Mr. Chelsted stressed the impor tance of encouraging the employe to make any general comments which he so desired. “You will be surprised at the inter est your employes will take in improv ing procedure, customer relations, and working conditions, if you give them a fair chance,” he said. In closing, Mr. Chelsted stated, “ It is certainly wise employe relations for management to make every effort to determine, as accurately as possible, the feelings of the employes in order that objectionable practices or condi tions may be eliminated and irritating policies, which are misunderstood, can be explained.”—The End. CONTEST— Hospitalized veterans and underprivileged children received more than 6,500 Christmas gifts from employes of Bankers Trust Company, New York. Among the gifts were 250 dolls and 350 wooden toys. The dolls were purchased and dressed by the women employes, while the parts for the wooden toys were fabricated by wood working hobbyists, and then assembled and painted by other staff members. David R. Young, head o f the employes organization of Bankers Trust Company, shows the prize winning rocking horse in the bank’ s annual toy contest to S. Sloan Colt, president of the bank, who gets down on his knees to take a close look. City National Bank and Trust Company of Chicago Condensed Statement of Condition-— December 3 1 , 194 8 RESOURCES LIABILITIES Cash and Due from Banks . . . $105,785,934.88 C a p i t a l ........................................ U. S. Government Securities . . 151,747,462.84 S u r p l u s ........................................ 4,000,000.00 State, Municipal, and Other S e c u r itie s ................................... Undivided P r o fits ......................... 3,491,683.01 5,824,022.08 Reserves for Interest, Taxes, and C o n t in g e n c ie s ......................... 2,444,596.36 Loans and Discounts . . . . Federal Reserve Bank Stock . 71,350,084.87 $ 4,000,000.00 . 240,000.00 Dividend payable February 1, 1949i Accrued I n t e r e s t ......................... 931,336.25 Customers' Liability on Letters of Credit and Acceptances . . Letters of Credit and Acceptances Outstanding . . . . 1,442,975.24 Other L ia b ilit ie s ......................... 76,144.37 Other R e s o u r c e s ......................... 138,286.02 D e p o s i t s ........................................ 321,944,703.20 $337,460,102.18 Member Federal Deposit Insurance Corporation N o r t h w e s t e r n Banke r, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 60,000.00 1,442,975.24 $337,460,102.18 37 It’s the that WIN and HOLD customers | AMERICAN EXPRESS ! travelers I CHEQUES W h en y o u sell A m erica n Express Travelers Cheques these EXTRA V ALU ES m a ke friends for y our bank EXTRA: Your customers can use American Express Travelers Cheques almost everywhere. They are the original and by far the most spendable travelers cheques in the world. EXTRA: American Express is carrying out a permanent program of intensive education, emphasizing that American Express Travelers Cheques may be accepted without fear of loss. Hotels, restaurants, gas stations, gift shops, transportation terminals and many other business places all will honor your customers’ American Express Travelers Cheques. EXTRA: An American Express Travelers Cheque is a “member ship card” in America’s foremost travel organization. When your customers carry American Express Travelers Cheques on trips, if they need help in solving their financial problems they can be sure of assistance anywhere in the United States and in principal cities around the world. /*§aloYi -^Yp r e S* These extras have m ade A m erican Express T ravelers Cheques by fa r the best know n cheques in the w orld. Because they are the best for you r customers, w e sincerely believe they are the best for you. A m e r ic a n E x p r e s s T ravelers Cheques https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n Banker, J a n u a r y , 1949 38 Officers Retire Four veteran officers of The First National Bank of Chicago retired on pension from the bank at the close of the year. The banking careers of these men are splendid examples of the First National Bank’s system of promotion, and the opportunity for the individual to make good. At the top of the list, in point of service, is Vice President Roy R. Mar quardt, with a record of over 50 years’ employment, the tenth employe in the bank’s history to reach the half-cen tury mark. Next is Vice President Harry Salin ger, with 47 years’ service. He en tered the employ of the bank as a young man in 1901, serving succes sively as messenger, general man, traveling auditor, assistant manager and manager of the foreign banking department. The third to retire is Thomas S. Mc Carty of Wheaton, with 46 years of service. Mr. McCarty entered the em ploy of the bank in 1902. Coming up through the ranks, he was elected an assistant cashier in 1920, and assist ant vice president in 1932. Claude B. Carter of Evanston, with over 26 years of banking service, is the fourth to retire. Mr. Carter en tered the employ of the Union Trust Company in 1922, and at the time of that bank’s consolidation with the First National Bank, was elected as sistant vice president. Executive Vice President S. Sloan Colt, president of the Bank ers Trust Company, New York, an nounced the election of Alex H. Ardrey, vice president in charge of the banking department of the company, "The FARM OUTLOOK for 1949 ¡s Good —Soys Doane ■ n n n H H G mmmmmmmm “ Prices will stay high by prewar standards, but farmers must keep their guards up” . . . Farm income affects the profits of your bank. Study the economic forces affecting farm income. Advise your farm clients wisely on which Enterprises are most profitable. Make sound farm loans by keeping in touch with prices, markets, shortages and surpluses ahead, guided by the DOANE AGRICULTURAL DIGEST Edited by the oldest and largest farm management and appraisal organization, it was prepared originally for our own farm manag ers— to give concise advice on markets, changes, trends and new developments in agriculture. Demands from business executives and farm owners caused us to accept our first public subscriptions ten years ago. The Digest Service consists of a 450-page cumulative reference volume, in strong loose-leaf binder, kept up to date by twicemonthly releases interpreting current trends . . . Particularly important to the Banker are releases on “ When to Sell and Buy,” “Business and Agriculture,” “Important This Month,” and “ To Those Who Lend Money.” More than 1,000 BANKS are n o w subscribers. In the farming state of Iowa, for example, more than a fourth of the banks use the Di gest regularly. Write for Free Sample Releases DOANE Agricultural Service, Inc. Dept. 604, 203 Plymouth Bldg. A L E X H. A R D R E Y Receives Promotion to a newly created office of executive vice president. Mr. Ardrey entered the employ of Bankers Trust Company in 1930 as vice president in charge of the com pany’s business on the west coast and in the southwest. He was made head of the banking department in 1945 and continues in this capacity, in addition to his new responsibilities. Mr. Ardrey was also named a director of the company. At the same meeting, B. A. Tomp kins, vice president since 1920, was designated senior vice president. Elections Central Hanover Bank and Trust Company has announced the election of the following men to the position of vice president: Rector K. Fox, C. R. Parker, Jr., Walter F. Thomas, . A. C. Thompson and J. A. Turnbull. The following men were appointed assistant vice presidents: W. A. John ston, William Kardel, Jr., G. B. Moran, G. Sealy Newell and Benjamin Spier. Assistant secretaries appointed were: H. Clay Dennett, William F. Jones, George R. Macalister, D. C. Merrick, William R. Morris and Russell R. Roetger. DES MOINES 9, IOW A Consumer Credit Conference Dates for the National Consumer Installment Credit Conference, which I N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 39 . . . H O W R E M IN G T O N R A N D 'S FREE T Y P IN G STATIO N A N A L Y S IS LEADS TO GREATER T Y P IN G P R O DU CTIO N . . . AT LO W ER NET COST! C O M P A R I S O N OF COSTS — Item by item, yourtyping station costs are compared with the national average. In this way you can imme diately see if your ex penses are "in line". © A N A LY SIS OF W O R K — Your Remington Rand representative decides whether you have the correct model type writer for the job to be done ... and if special attachments are neces sary to improve effi ciency. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Now you can find out—without cost or obli g a tion -ju st where your typing production may be falling while typing costs rise. In the three steps described at the left, your nearby Remington Rand representative analyzes your typing stations . . . learns the source of your troubles ... makes his recommendations. And if he suggests the new Remington Noise less as the ideal replacement for your worn, inefficient typewriters . . . let him show you why! Ask for a demonstration right in your own office of the many Plus Values of the Remington Noiseless that pay you a double dividend . . . typing perfection with quiet! THE F IR ST NAME IN TYPEWRITERS the new REMINGTON NOISELESS E V A L U A T IO N OF E Q U IP M E N T -A thor ough physical checkup of your typewriters will weed out inefficient, outmoded machines. You'll be advised of the most suitable model for your job requirements. M A I L THIS C O U P O N TODAY! Remington Rand Inc. Typewriter Div., Dept. D1 315 Fourth Avenue, New York 10, N.Y. I’ m interested in tu rn in g office costs into profits. Please arrange an analysis of our Typing S tations w ith o u t cost or oblig a tio n . N a m e . ....................................................................... .. . . ................ F i r m ..................... .................................. ............................................ A d d r e s s ................................ ... ..................................... .. C i t y ...............................................Z o n e ...........S t a t e ........................ I I And I ’d like to see the new R em ington N oiseless in actio n ! N o r t h w e s t e r n Banker, J a n u a r y , 1949 40 the American Bankers Association has announced will be held in St. Louis, Missouri, are March 29, 30, and 31, 1949. It will be held in the Hotel Jefferson in that city. The theme of the conference is to be Banking, In dustry and Government. It is antici pated that in addition to representa tive speakers from banking and busi ness there will be on the program sev eral high officials of the government. The program is now in the process of development and speakers will be an nounced as soon as it is completed. that E. F. Dunstan has been elected vice president, and will be in charge of the bond department. Mr. Dunstan returns to this post after serving since April, 1947, as director of marketing of the International Bank for Recon struction and Development. low a-D es Moines Elections Following the annual meeting at the lowa-Des Moines National Bank, Her bert L. Horton, president, announced the election of Bernard D. Kurtz and Charles S. Bendixen to the board of directors and John T. McCormick as assistant cashier. H eads Bond Department S. Sloan Colt, president of Bankers Both Mr. Bendixen and Mr. Kurtz Trust Company, New York, announced are members of pioneer Iowa families. A M E R IC A N A m y N A T IO N A L B A N K T R U S T O F Member Federai Deposit STATEMENT THE CLOSE OF Department of Commercial Banking C H I C A G O LA S A L L E S T R E E T ,[S AT C O M P A N Y John De Jong, Harry H. Sivright, Harold P. Klein and Geo. D. Jorgen sen, vice presidents; James R. Brown, assistant cashier. AT W A S H IN G T O N Insurance Corporation OF Department of Banks and Bankers 4 «»N IM TIO N K C SIN E SS Mr. Bendixen is secretary and treas urer of Shuler Coal Company and a trustee of the Thompson Trust. Mr. Kurtz is secretary of L. H. Kurtz Company, secretary of the Kurtz Realty Company, and president of Kurtz Company, Mason City, Iowa. He is a member of the board of direc tors of the Des Moines Chamber of Commerce and of the Central Supply Association. Mr. Kurtz is the third generation of his family to serve on the bank’s board. Mr. McCormick, a member of the installment loan department staff, has been with the bank since 1929. Dur ing World War II he was with the United States Navy for two and onehalf years, serving in the southwest Pacific. All other officers and directors were re-elected. Officers are: Herbert L. Horton, president, and Albert J. Robertson, vice president. DECEMBER »1, 1948 Erwin W. Jones and Everett M. Grif fith, vice presidents. Department of Bank Administration it i : s o n e c ■<:$ Cash and due from b a n k s .................................... $ 72,686,494.15 United States Government obligations . . . 66,289,986.85 Municipal and other marketable securities . . 26,117,824.72 Loans and d isc o u n ts............................... 65,621,881.76 Federal Reserve Bank stock .................................... 210,000.00 Customers’ liability on letters of credit and a c c e p ta n c e s ........................................................ 1,437,263.79 Accrued interest receivable.................................... 409,140.03 Other a s s e t s ............................................... 130,741.45 $232.903.332.75 L I A B I L I T I E S Capital sto ck ............................................................. $ 3,000,000.00 Surplus......................................................... 4,000,000.00 Undivided profits . ................................ 1,272,751.59 Reserves for taxes, interest, contingencies, etc. . 1,636,744.48 Unearned discount..................................... 1,073,458.59 Other liabilities.......................................... 244,469.51 Liability on letters of credit and acceptances . 1,438,340.79 Deposits: D em and........................................ $188,681,641.91 United States Government . 3,640,781.30 Other public funds . . . . 7,981,597.61 T i m e ......................................... 19,933.546.97 Trust Department Clyde H. Doolittle, vice president; C. Ream Daughrity, trust officer; Ar thur H. Keyes, assistant vice presi dent, and Arthur J. Petit, assistant trust officer. Mortgage Loan Department Orville M. Garrett, vice president; Laird M. Fryer, assistant vice presi dent, and Orville Gore, assistant cash ier. Installment Loan Department Talks to Students $232,903,332.75 United, States Government obligations and other securities carried at 831,484,490.11 are pledged to secure public and trust deposits and fo r other purposes as required or permitted by law. N o r t h w e s t e r n Banker, J a n u a r y , 7949 Bond Department Sherman W. Fowler and Harry L. Westphal, assistant vice presidents. Gerald O. Nelson, vice president, and Charles R. Clift, assistant cashier. 220,237,567.79 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Harry G. Wilson, vice president and cashier; Robert L. Carson, comptroller; James F. Hart, assistant vice presi dent; James Burson, Clarence Mickelson and W. F. Howell, assistant cash iers. A. M. Strong, vice president, Ameri can National Bank and Trust Company of Chicago, addressed students in ex porting, importing and shipping at Northwestern University on January 14th. His subject was “ The Signifi cance of Imports in Our National Economy.” 41 THE N A T IO N A L C IT Y BANK OF N E W Y O R K H e a d Office • 5 5 W ALL STREET • N e w York Condensed Statement o f Condition as o f December 31, 1948 Inc lu d in g Domestic and F o re i gn B ra nc h e s B u t Not Inc lu d in g T h e Affiliated C i t y B a n k Fa rmers T r u s t C o m p a n y ( In Dollars Only— Cents Omitted) T ASSETS Cash, Gold and Due from Banks......................... United States Government Obligations............. D I R E C T O R S $1,532,119,431 1,656,863,022 W M . GAGE BRADY. JR. Chairman of the Board (Direct or F u lly Guaranteed) Obligations o f Other Federal Agencies............... State and Municipal Securities............................ Other Securities....................................................... Loans and Discounts.............................................. Real Estate Loans and Securities........................ Customers’ Liability for Acceptances................. Stock in Federal Reserve B ank............................ Ownership o f International Banking Corpora tion ........................................................................ Bank Premises......................................................... Other Assets............................................................. T o ta l............................................................. W . RANDOLPH BURGESS Chairman of the Executive Committee 20,800,544 223,270,860 80,736.635 1,422,290,652 2,693,232 22,194,546 7,500,000 HOWARD C. SPIEPERD President SOSTHENES BEHN Chairman. International Telephone and Telegraph Corporation CURTIS E. CALDER Chairman of the Board, Electric Bond and Share Company 7 ,000,000 27,686,865 1,581,831 GUY CARY Shearman & Sterling & Wright ED W AR D A. DEEDS Chairman of the Board, The National Cash Register Company $5,004,737,618 L IA B IL IT IE S Deposits.................................................................... Liability on Acceptances and Bills. . $34,594,396 Less: Cwn Acceptances in Port folio............................................... .... 8,562,589 Items in Transit with Branches........................... CLEVELAND E. DODGE Vice-President, Phelps Dodge Corporation $4,643,112,364 A. P. G IANNINI Founder-Chairman, Bank of America National Trust and Savings Association 26,031,807 JOSEPH P. GRACE, JR. President, W . R. Grace & Co. 12,647,857 JAMES R. HOBBINS President, Anaconda Copper Mining Company Reserves for: Unearned Discount and Other Unearned Incom e..................................................................... 5,925,327 Interest, Taxes, Other Accrued Expenses, etc. 21,006,274 D ividend...................................................................... 4,650,000 Capital................................................$ 77,500,000 Surplus............................................... 172,500,000 Undivided Profits............................. 41,363,989 291,363,989 T o ta l............................................................ AM ORY HOUGHTON Chairman of the Board, Corning Glass Works ROGER M ILLIKEN President, Deering, Milliken & Co. Incorporated FREDERICK B. RENTSCHLER Chairman, United Aircraft Corporation $5,004,737,618 GERARD SWOPE Honorary President, General Electric Company Figures of Foreign Branches are as of December 23, 1948. REGINALD B. TAYLOR Y illiamsville, New York $272,0 43,20 9 of United States Government Obligations and $6 4 3 ,3 5 5 of other assets are deposited to secure $19 9 ,8 8 5,739 of Public and Trust Deposits and for other purposes required or permitted by law. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (M em b er Federal D eposit Insurance Corporation) ROBERT W INTHROP Robert Winthrop & Co. 4 N o r t h w e s t e r n Banker, J a n u a r y , 1949 42 A d d s Board Mem ber ★ ★ i ß a n k of A m r r i r u NATIONAL savings ASSOCIATION C a lifo rn ia ’s Statew ide B a n k ★ ★ C o n d en sed S ta tem en t o f C o n d itio n , D e ce m b e r 3 1, 19 48 RESOURCES Cash in Vault and in Federal Reserve Bank . . . . $ 847,290,364.89 Due from B a n k s ..................... TOTAL 341,974,207.88 C A S H ............................................. $1,189,264,572.77 BANKERS YOU K N O W United States Government Obligations, direct and fully guaranteed.............................. 1,545,280,553.15 State, County, and Municipal B o n d s ..................... 283,455,131.62 Other Bonds and S e c u r i t i e s .............................. 109,996,633.92 Stock in Federal Reserve B a n k .......................... 6,499,400.00 Loans and D is c o u n t s ........................................... 2,807,070,397.91 Accrued Interest and Accounts Receivable . . . . Bank Premises, Furniture, Fixtures and Safe Deposit Vaults Other Real Estate O w n e d .................................. Other R e so u rc e s................................................ TOTAL RESOURCES . . . 24,974,348.58 42,438,450.40 256,058.81 Customers' Liability on Account of Letters of Credit, Acceptances, and Endorsed Bills . 63,106,784.24 571,540.33 $ 6 , 0 7 2,9 1 3,87 1.73 LIABILITIES Capital . $ 106,646,375.00 Surplus . 110,000,000.00 62,872,254.99 Undivided Profits Reserves . 4,666,168.06 T O T A L C A P IT A L FUNDS $ 284,184,798.05 Reserve for possible Loan L o s s e s .......................... Deposits ( D e m a n d ................. $3,139,747,378.91 / j Savings and Time # . 2,499,776,040.24 41,505,513.86 ) Liability for Letters of Credit and as Acceptor, Endorser, or Maker on Acceptances and Foreign Bills Reserve for Interest Received in Advance . . . . Reserve for Interest, Taxes, etc.............................. TOTAL LIABILITIES . . . 5,639,523,419.15 65,383,454.65 12,463,320.59 29,853,365.43 $ 6,0 7 2,9 1 3,8 7 1.7 3 This statement includes figures of the Bank’s foreign branches M ain Offices in Two Reserve Cities o f California S A N F R A N C IS C O • L O S A N G E L E S Foreign branches: London, Manila, T o k y o , Yokohama, Kobe Branches throughout California N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The stockholders of The Northern Trust Company, Chicago, at their ananual meeting increased the number of directors of the bank from nine to ten members. William R. Odell, Jr., vice president and treasurer of International Harves ter Company, was elected to fill the new place on the board. Directors re-elected were: A. Watson Armour, Sewell L. Avery, Albert B. Dick, Jr., Edward L. Ryerson, Edward Byron Smith, Solomon Byron Smith, John Stuart, Merle J. Trees and Solomon A. Smith. 1949 (Continued from page 24) boxing, and he still goes at things in the eld sporting spirit. His competi tive instinct is strong, he is a firm believer in teamwork and in battling aggressively all the time. He asks no quarter, and he well remembers a lesson learned in his youthful boxing days that it is unwise to relax before the bout is won. Spasmodic genius in bank officers does not impress this vice president. Occasional bursts of energy and mo ments of brilliance are not good enough, he says. Once, when he was an inspector, he wrote to a branch manager: “ Results are not obtained by spasmodic attempts, but only by sustained effort.” It follows that he has little sympathy with dawdlers, insists on quick action when he wants something done, and demands strict discipline. His 10,000 employes, how ever, testify to his strong sense of justice and fairness, with a lapse into indulgence when they will effect an improvement for the good of the bank and the officers concerned. Besides being a member of several clubs, Mr. Muir is a life governor and chairman of tbe finance committee of Verdun Protestant Hospital; gover nor, honorary treasurer and member of tbe executive committee of the Royal Edward Laurentian Hospital; associate honorary treasurer of the Canadian Chamber of Commerce, and be was chairman of the Welfare Fed eration Campaign, which raised $1,148,000 for charitable work last fall. It was the first time in four years the campaign had been successful. Mr. Muir was married to Phyllis Marguerite Brayley, daughter of tbe late Horace B. Brayley of Montreal, in 1919, and they have one daughter, Heather. As to his recreations, they are as varied as the rest of bis life: fly fish ing, golf (he shoots in the low 80’s), and driving an automobile . . . fast. 43 O u t l o o h F a i r ii/ BANK By PAUL S. RUSSELL, President Harris Trust & Savings Bank, Chicago O P P O R T U N IT Y HE following analysis of the busi eral standard of living of our nation. ness outlook for 1949 was made at Looking back, one cannot but have the request of the N o r t h w e st e r n in mind the fact that the year 1948 completely refuted the forecasts of B a n k e r and we feel sure that you will find Mr. Russell’s opinion of the com many who a year ago saw in the price maladjustments the basis for a down ing events most interesting. turn of business within the year. “We have just completed a year While I realize that the whole eco nomic situation m a y have been changed considerably by such factors as the unexpectedly large agricultural harvests and the emergence of a largescale foreign aid program, neverthe less, I am well aware of the difficul ties and hazards in trying to make more than a tentative forecast of the course of business in coming months. “Despite the momentum with which business begins the new year there are a number of reasons to question whether the recent rate of activity can be sustained indefinitely. Signs of weakness have been cited in resi dential building, freight carloadings, retail trade, backlogs of unfilled or ders and other statistics. We know that profit margins in many industries have narrowed and that some indus tries, especially in consumer goods lines, have been experiencing a reces PAU L S. RU SSELL sion of their own. On the price front Comments on Business Outlook the state of balance is such that econ omists are about equally divided on which by almost any standards will be recorded as one of outstanding the question of whether deflation rath achievement and prosperity. It was er than inflation may be in prospect. a year in which many new peacetime When to these considerations we add highs were established in output and the likelihood of a fourth round of consumption of goods and in the gen wage increases and the coming tax T FIELD WAREHOUSE RECEIPTS by WILLIAM H. BANKS WAREHOUSES, INC. PROVIDE: SA FET Y for your BANK LOANS; THIRD PARTY CONTROL of PLEDGED MERCHANDISE; Definite DESCRIPTION of the COMMODITY stored. ALL ADEQUATELY BONDED. Many of your customers have INVENTORIES, which, when represented by proper WAREHOUSE RECEIPTS, give your bank PREFERRED COLLATERAL for your bank loans. Write or telephone us today tor complete details. D IV IS IO N O F F IC E S Des Moines, Io w a -fr St. Louis, Mo. + M adison, W is. Grand Rapids, Mich. ic Fayetteville, A rk. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ★ A ngola, Indiana W e slaco , Texas WILLIAM H .B A(M S WAREHOUSES ! NC.) 'So-rzatecd 109 SO. LASALLEST.. CHICACO. ILL. N U M B E R 34 Investment $18,000 About 25% of the capital stock offered at book value Carries top executive position to qualified man Located in IOW A Deposits over $1,500,000 Earning about 15% on investment Elderly owner wishes to retire Modern home available on a modest rental basis An inspection will convince you that the earnings can be greatly increased by younger and more aggressive management. An excellent spot for a young banker to prove his executive ability. This splendid opportunity is but one of the many fine oppor tunities now available through our service. If you are in the market for the purchase of an interest in a bank it will pay you to contact us. Further information will be given on this and other oppor tunities only to bona fide pros pective bank purchasers, and only after they have executed our bank purchaser's applica tion. Write for bank purchaser's ap plication today. Bankers Service Co. HENRY H. BYERS, President HARRY B. GIPSON, Vice President Register & Tribune Building S A N K Afield folmehuuie 'Receifih Des Moines 9, Iowa Brùdÿituj. THE GAP Betw een Telephone 2-7800 . BANKING mid INDUSTRY N o r t h w e s t e r n Banker, J a n a a r y , 1949 44 legislation, I believe that the proba bilities at this time point toward some decline this year in the levels of busi ness activity and corporate earnings. However, I anticipate that the year as a whole should be a relatively sat isfactory one, and it appears that such factors as increased expenditures for public works, foreign aid and defense purposes should be effective in taking up part of the slack which may de velop in the economy.” CROCKER FIRST NATIONAL RANK OF SAN FRANCISCO SAN F R A N C I S C O OAKLAND Condensed Statement at close o f business December 31, 1948 § H O W T O IN C R E A S E E A R N IN G S IN 1949 Resources Cash and Sight Exchange . . . $ 97,736,466.92 * United States Government Securities............................. 149,438,098.88 State and Municipal Bonds . . 9,301,773.92 Other B o n d s .......................... 2,411,512.62 Loans and Discounts............... 84,157,959.88 Stock in Federal Reserve Bank 480,000.00 Customers’ L iability under Letters of Credit and A ccep ta n ces....................... 1,237,681.78 Bank Premises, Head Office and O akland.................... 3,153,112.97 Other Assets.......................... 182,255.73 T O T A L .......................... $348,098,862.70 D IR E C T O R S C h a irm a n o f th e B o a rd W illiam W. C rocker P r e s id e n t J . F . Sullivan , " A D D IN G EXTRA SERV IC E CHARGE" G eorge T . C ameron C a sh ie r, Donahue S a v in g s Bank A rthur G oodall “Although we are well satisfied with our present earnings, we are planning to add an extra service fee for chattel inspection, possibly $5.00, which would include the original check-up and one more during the term of the loan. Thus, on a basis of about five hundred chattel mortgages per year, it is an easy matter to add $2,500 of non-risk income to the earnings. We find that there is no objection to this charge as far as we are able to learn from the borrowers contacted.”—The End. By W A L T E R E. P A U S T IA N Donahue, Iow a A. G. G riffin A rthur W. H ooper L ewis A. L apham N orman B. L ivermore W alter S. M artin A t h o l l M cBean 24,676,161.26 210 ,000.00 801,033.99 TOTAL S. F. B. M orse D. J. M urphy W. B. Millard, Jr.r Elected President As this issue of the N orthwestern goes to press, we have just B anker G eorge A. Pope , Jr . M rs. H enry P. R ussell Secured Deposits $ 31,555,873.27 Tim e and Savings Deposits . . . . 79,007,730.96 Demand Deposits 209,711,843.85 T O T A L DEPOSITS . . . Other L iabilities..................... Joseph A. M oore C harles P age 1,237,681.78 banking. We probably should be more concerned about maintaining our banks in good condition than laying too much stress on increased earn ings.” Starr B ruce C lifton H. K roll Capital . . . . $ 6,000,000.00 Surplus . . . . 10,000,000.00 l 1ndivided Profits 4,576,161.26 Reserve for Contingencies 4 , 100,000.00 Total Capital Accounts . . . . Reserve for Dividend Payable —Jan. 3, 1949 ........................ Reserve for Interest and Taxes Letters of Credit and A ccep ta n ces.................. Deposits: (c J*- V ice P r e s id e n t C harles S. H oward Liabilities (Continued from page 21) James K. M offitt J. F. Shuman W alter H. Sullivan 320,275,448.08 898,537.59 •$348,098,862.70 Sydney G. W alton Frederick Crocker W hitman ^Securities carried at $38,385,000.00 are pledged to qualify in a fiduciary capacity and to secure Trust Deposits, United States Government and Other Public De posits, as required by Law. Member Federal Deposit Insurance Corporation Ralph B. Wells, Eastern Representative — 20 Pine Street — New York w. B. M IL L A R D , JR. Heads Omaha National N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 45 F irst W is c o n s in N a t io n a l B a n k M ilw aukee S t a t e m e n t o f (Condition as oj clDecember J l s f It y f 8 d ir e c to r s W illiam G. B rumder Vice President W M errill C hester President-Treasurer, T. A, Chapman Company illiam E. J. D empsey Attorney, Oshkosh , W alter G eist President, Allis-Chalmers Mfg. Co. Joseph F. H eil President, The Heil Co. R E S O U R C E S Cash and Due from Banks.............................. $153,730,669.89 U. S. Government Securities.......................... Other Bonds and Securities........................................................ Stock in Federal Reserve Bank............... K asten President alter G eorge E. Long President, Koehring Co. Ernst M ahler Executive Vice President, Kimberly-Clark Corp. Robert E. Pabst C yrus L. Philipp President, Union Refrigerator Transit Co. H arold H. Seaman Industrialist Lawrence F. Seybold Executive Vice President, Wisconsin Electric Power Co. Erwin C. U ihlein President, Jos. Schlitz Brewing Co. 600,000.00 Accrued Income Receivable........................................................ 991,716.02 Bank Buildings and Equipment................................................ 3,315,531.25 Other Resources.......................................................................... 3,199,633.41 $572,352,737.58 L I A B I L I T I E S Capital.............................................................. $10,000,000.00 Surplus.............................................................. 10,000,000.00 Undivided Profits............................................ 8,038,136.11 Special Reserves (includes amount sufficient to amortize U. S. Government and all other securities to p ar).............................. 9,014,192.85 Reserves for Interest, Expenses, Etc........................................... Deposits............................................................ 520,790,104.51 War Loan Deposit Account............................ 11,072,589.18 Other Liabilities.......................................................................... 37,052,328.96 1,098,318.47 531,862,693.69 2,339,396.46 $572,352,737.58 P resid en t, W alter K asten E x e c u tiv e V ic e P resid en t, W m . T aylor V ic e P resid en ts W illiam G. Brumder Edwin B u ch an an G eorge T. C ampbell Edward R. D roppers Carl M. Flora Pierre N. H auser W illiam J. K lum b Joseph U. Ladem an Edwin R. O rmsby Joseph E. U ihlein Banker Jo h n S. O w en C hester D. R aney Joseph W . Sim pson , Jr . R oy L. Stone C a sh ier, A. G. C asper C o m p tr o lle r , C larence H. L ichtfeldt Joseph E. U ih lein , Jr . President, Glenogle Co. Robert A. U ihlein Banker 18,084,707.07 97,646,973.00 W m . T aylor Executive Vice President C harles O. T hom as President, ' Pal-O-Pak Insulation Co. 448,514,176.83 Loans and Discounts.................................................................. W alter V . John ston Industrialist W 294,783,506.94 UNPARALLELED STATEWIDE SERVICE R obert A. U ih l ein , J r . Jos. Schlitz Brewing Co. Through affiliated banks and correspondent bank relationships — embracing over 90 per cent of all banks in Wisconsin — the First Wisconsin offers unparalleled statewide banking service. W illiam D. V ogel Real Estate and Investments M E M B E R 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 t h w e s t e r n Banker, J a n u a r y , 1949 46 received word that W. B. Millard, Jr., has been elected president of the Omaha National Bank and W. D. Clark has been re-elected chairman of the board. Mr. Millard was formerly senior vice president of the bank. Ray R. Ridge will continues as sen ior vice president. W H A T BANKERS SA Y ABOUT CREDIT P O L IC IE S FOR 1949 (Continued from page 19) than 40 per cent of what it was in 1920. “2. In the farm mortgage field, monthly payment loans amortized over a period of years are gaining in popularity. . . . Long time agricultural credit can be made available through country banks w ith o u t sacrificing liquidity. “3. Production loans should pro ceed in a normal way unless there are local reasons for severe depression in farm product prices. “We who are rural bankers will be watchful and will lend our aid in every way possible to maintain a sound economy in agriculture. That goal is of vital importance to this nation as a whole. No one of us can profit per Statement of Condition, December 31, 1948 RESOURCES Cash and due from b a n k s ............................................. $ 73,506,821.24 U. S. Government S e c u r it ie s .............................................. 61,037,890.93 (Including those pledged $16,317,159.50) Other Bonds and S e c u r it ie s ............................................. 7,871,706.43 Federal Reserve Bank S t o c k .............................................. 300,000.00 Loans and D isc o u n ts ............................................................ 86,446,796.36 Customers' Liability on Acceptances and Letters of C r e d i t ............................................................. 417,482.50 Real E s t a t e ............................................................................ 216,949.00 Accrued Earnings Receivable (N et)...................................... 234,926.78 O v e r d r a f t s ............................................................................ 7,223.23 Other R e s o u r c e s ................................................................. 148,222.30 $230,188,018.77 LIABILITIES Capital ................................................................................ $ Surplus and Undivided P r o f i t s ......................................... Accrued Interest, Expenses and Taxes Payable (Net) and Other R e s e r v e s ....................................................... Acceptances and Letters ofC r e d i t ................................. Other L i a b i l i t i e s .................................................................. Deposits: U. S. Government, and other Public F u n d s .............................. $ 17,704,720.00 Other D e p o s i t s ............................... 195,697,575.82 6,000,000.00 8,998,009.20 1,083,694.00 417,482.50 286,537.25 213,402,295.82 $230,188,018.77 Member Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 manently at the expense of the farmer in a period of declining prices.” "M E E T D E M A N D S O F PEOPLE" By T H O M A S C. B O U SH A LL, Presid ent, Bank of Virginia, Richmond “As to a credit policy for the banks in consumer financing, it seems to be abundantly clear that there is and will be ample demand for all agencies to extend consumer credit in the course of time. “Our credit policy in consumer financing must be one of slow move ment and not of violent fluctuation. We cannot be guilty of lending wildly today and none at all tomorrow, lend ing to every one on odd days and only a select few on even days. We must, rather, temper our credits to the needs of all on every day. We must adjust our services to the people’s needs, cautioning against heavy borrowing in dangerous times, stimulating credit extension when the economy needs a spur for its even conduct. “ The great multitude of buyers of the products and the services of our country determines whether our econ omy is to rise and to expand in the years ahead. We must keep in close touch with the people. We must know and we must be prepared to meet their sound demands.” "W A T C H IN V E N T O R Y LO AN S" By W A L T E R L. W EB B Vice Presid ent, W a c h o v ia Bank & Trust Co., W inston-Salem , North C a ro lin a “ It is unintentional speculation in inventories arising out of the normal operations of industry that may well prove to be the banker’s most diffcult problem in 1949 so far as commodity and inventory financing are concerned. As bankers, we must be on our toes to meet the situation, whichever way the trend in a particular industry might go—toward inflation or toward deflation. It is quite probable that the trend may be one way in one indus try and the opposite way in another during the coming year. “The category of loans, in my opin ion, where the trouble is most likely to come to the lender is in the instance in which a company borrows regularly for its operating requirements year after year, cleaning up all bank debt each year for at least thirty to sixty days, so that the banker is likely to be lulled into a state of complacency and one of these days he awakened with Jhe sudden realization that his loan is now tied up in slow-moving inven tories. “ Constant vigilance in an endeavor to avoid and forestall speculative in ventory loans, however arising, and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47 T N Y e w C h e o r k o m T r u s t p a n y 100 B R O A D W A Y MADISON AVENUE AND 4 0 t h STREET • TEN ROCKEFELLER PLAZA C O N D EN SE D ST A T E M E N T OF C O N D IT I O N DECEMBER 31, 1948 ASSETS Cash and Due from Banks................................................................................................. $ 2 3 4 ,4 7 1 ,1 0 2 .5 3 United States Government O bligations....................................................................... 2 1 7 ,1 9 9 ,1 9 8 .3 7 Stock o f Federal Reserve B a n k ....................................................................................... 1 ,5 0 0 ,0 0 0 .0 0 Other Bonds and Securities............................................................................................... 4 ,8 9 9 ,7 0 0 .0 5 Loans and Discounts............................................................................................................. 2 5 6 ,4 2 6 ,5 3 0 .1 5 Customers’ Liability for Acceptances............................................................................ 2 ,3 6 2 ,4 6 0 .5 7 Interest Receivable and Other A ssets........................................................................... 2 ,3 4 2 ,9 3 4 .3 1 $ 7 1 9 ,2 0 1 ,9 2 5 .9 8 LI ABI LI TI ES Capital.................................................................................................... $ 1 5 ,0 0 0 ,0 0 0 .0 0 Surplus................................................................................................... 3 5 ,0 0 0 ,0 0 0 .0 0 Undivided Profits.............................................................................. 1 5 ,893,5 11.61 $ 6 5 ,8 9 3 ,5 1 1.61 R ese rv es.................................................................................................................................... 5 ,1 7 4 ,8 4 0 .5 7 Dividend Payable January 3, 1 9 4 9 ................................................................................ 6 0 0 ,0 0 0 .0 0 Acceptances.............................................................................................................................. Accrued Taxes and Other Liabilities............................................................................. 2 ,7 9 1 ,8 1 2 .1 7 2 ,3 4 1 ,1 5 0 .6 0 D eposits.............................................. ....................................................................................... 6 4 2 ,3 9 8 ,6 1 1 .0 3 $ 7 1 9 ,2 0 1 ,9 2 5 .9 8 United States Government obligations carried at $ 19 ,14 0 ,2 4 9 -6 6 in the above statement are pledged to secure United States Government deposits of $ 14 ,0 7 5 ,2 3 9 -2 3 and other public and trust deposits and for other purposes required by law. TRUSTEES M A LC O LM P. ALD R IC H N ew York G R A H A M H. A N T H O N Y President Colt’s Manufacturing Company A R T H U R A. B A L L A N T IN E Root, Ballantine, Harlan, Bushby & Palmer JO H N E. B IE R W IR T H President ALFRED A. C O O K N ew Yo rk W IL LIA M F. CU TLER Vice President American Brake Shoe Company R A LP H S. D A M O N President American Airlines, Inc. FR A N C IS B. D A V IS, Jr. N ew York SAM U EL H. FISHER Litchfield, Conn. W IL LIA M H ALE H A R K N E SS N ew York H O R AC E HAVEM EYÌER, Jr. President The National Sugar Refining Co. B. B R E W ST ER JE N N IN G S President Socony-Vacuum Oil Co., Inc. J. SP EN CER LO V E Chairman of the Board Burlington Mills Corporation A D R IA N M. M ASSIE V ice President SE T O N P O R TER President, National Distillers Products Corporation R O B E R T C. REAM Chairman of the Board American Re-Insurance Co. M O R R IS S A Y R E President Corn Products Refining Co. CH A R LES J. S T E W A R T Vice President V A N D E R B IL T W EBB Patterson, Belknap & Webb M ember Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , 1949 48 the will to take vigorous and coura geous corrective steps to work out such a situation when it does develop are the attributes necessary for the banker’s successful handling of com modity and inventory loans during the months immediately ahead.” " C O M M E R C IA L L O A N P O L IC Y " By LESTER E. S H IP P E E E x e cut ive Vice Presi dent, H a rtfo rd - C on ne cticu t Trust Co., H a rtfo rd “ In charting our lending policy, it seems to me that whatever our views may be as to the continuation of infla tion and level of business activity, we should predicate our policy upon the least favorable prospects. “ Our first concern should be to maintain a liquid position sufficiently strong to guard against foreseeable contingencies, including the possibil ity that we may be called upon to carry additional cash reserves. “Only those companies which main tain adequate cost systems, and who command management ability to con trol costs to the maximum possible, will be able to make a satisfactory showing in the period of intensified competition ahead. “ The price factor is of utmost im portance in the analysis of inventory, FIRST NATIONAL BANK IN " W IS E S T. L O U I S Statement oj Condition, Decem ber 31, 1948 RESOURCES Cash and Due from Banks U. S. Government Securities Loans and Discounts Other Bonds and Stocks Stock in Federal Reserve Bank Banking House, Improvements, Furniture and Fixtures Other Real Estate Owned Customers’ Liability a /c Letters of Credit, Acceptances, etc. Accrued Interest Receivable Overdrafts Other Resources $139,611,890.01 142,477,428.97 178,559,506.42 10,236,157.92 612,000.00 299,003.30 833,002.00 1,544,366.23 864,754.19 6,050.09 3,928.42 $475,048,087.55 LIABILITIES Capital Stock $10,200,000.00 Surplus 10,200,000.00 Undivided Profits 8,660,211.29 29,060,211.29 Dividend Declared, Payable February 28, 1949 300,000.00 Reserve for Taxes, Interest, etc. 1,560,574.30 Unearned Discount 321,067.67 Liability a /c Letters o f Credit, Acceptances, etc. 1,686,594.18 Other Liabilities 6,008.63 Demand Deposits $371,535,870.00 Time Deposits 58,665,899.24 U. S. Government Deposits 11,911,862.24 Total Deposits 442,113,631.48 $475,048,087.55 St. L o u i s ’ L a r g e s t Bank M em ber F ed era l D eposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , 7949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and our examination here must also give weight to the uneven demands of the economy. “Another important factor to scru tinize is the ratio of debt to the own er’s capital. “Another item which we should not overlook is the advisability of fre quent trade checks. “Also, the average collection period bears careful watching. “We must obtain more frequent and complete financial statements and in come accounts than we have called for in the past. “ In implementing our investiga tions, there is no course so effective as that of visiting our customers at their places of business. “ In my judgment, the public inter est, and our own, will best be served by a well defined, highly selective, and conservative lending policy.” CR ED IT P R A C T IC E S " By M A R K A. B R O W N Ex e cu tive Vice Pre side nt , H a rris Trust & S av in g s Bank, C h ic a g o “A wise bank credit policy today does not mean a restrictive credit pol icy. It does not mean a sharp cur tailment of loans. It means a selective credit policy. “There are certain standards we can adhere to in our credit practices— standards that are universally appli cable to all banks under present-day conditions. “The first of these standards deals with the quality of loans at their origin or inception. We need a far broader yardstick than the mere con sideration of soundness from the view point of the lending bank. “ The old rules of credit have not been superseded by the new short cuts of postwar prosperity. It is as true now as it ever was that bank credit ought to be extended carefully, first against receivables, then against inventories, and only with the utmost caution against what may prove to be plant and equipment. Under this lend ing standard, the best banking is still that which seeks to minimize the risk, balanced against the usefulness of the loan. “A vital part of a sound credit pol icy is the growing need to measure both loans and borrowers against the original conditions and premises upon which the loans were granted in the first place. I suggest reviewing pe riodically the loans made and the credits outstanding. “Now, more than ever, eternal vigi lance is the price of safety for not only the loans we make but for the char tered banking system as a whole.” 49 C R ED IT P O L IC Y " By DR. W IL L A R D E. A T K IN S C h a i r m a n D e p a r t m e n t of E c o n o m i c s W ash in gto n Squ are Colle ge , New York University “On the basis of current price data, reports from agriculture and various industries and the recent record of department store sales, which for five weeks were below the 1947 level, it would appear that the postwar infla tionary boom has been checked. Un der such circumstances, any decisive and important action aimed at restrict ing trade at this time would hardly seem to be in order. In any case, the hanks should be in a position of flexi bility, with bankers able and willing to adjust their tactics to the situation as it develops. B a n k “ It should be clear that a policy of restricting credit no less than that of increasing credit is open to many dan gers. “A policy of raising reserves to pre vent banks from lending or a decision by the bankers themselves to stop lending is very simple; but these are also very crude tactics that can pro duce great harm. They are akin to erecting road blocks to stop speeding automobiles. You may stop the ca reening car, but you may also cause a smash. “ If the administration launches an increased program—call it social se curity—it will transfer from those who otherwise would have the claim to ‘have’ to those who are now the beneficiaries of the new services. If o f th e M a n h a t t a n credit controls are necessary to effect these purposes, then they should be understood for what they are—not credit controls but a method for keep ing people out of the market. “ I want it clearly understood that I disavow any intention of attempting to evaluate the worthwhileness of these measures. What I protest against are the evasive measures and the evasive talk by which the reali ties are hidden from public knowl edge and recognition. Thereby, I pro test against the consequences of such evasions; first, because the public is not told why it is being denied the many things it wants and feels it should have; and second, because in its ignorance, it turns its frustration in to anger against the innocent.”—End. C o m p a n y N E W Y O R K , N. Y. Condensed Statement o f Condition J. STEW ART BAKER Chairman N EAL DOW BECKER President, Intertype Corporation W ALTER H. BENNETT Trustee, Emigrant Industrial Savings Bank GRAHAM B. BLAINE V ice-Chairman JOHN C. BORDEN President, Borden Mills. Inc. JAMES F. BROW NLEE GEORGE W . BURPEE Coverdale & Colpitts H ARRY I. CAESAR H. A. Caesar & Co. ROBERT M. CATHARINE President, Dollar Savings Bank of the City of New York F. ABBOT GOODHUE Retired W ILLIAM V . GRIFFIN Chairman, Brady Security & Realty Corporation LAW R ENCE President C. MARSHALL HENR Y D. MERCER President, States Marine Corporation ASSETS Cash and Due from Banks and Bankers . $ 390,123,248.43 U. S. Government Obligations.................... 344,795,970.36 Other Public S ecu rities.............................. 5,870,165.34 Other S e c u r i t i e s ........................................ 12,291,593.72 Loans and D iscounts................................... 455,974,434.05 F.H.A. Insured M ortgages......................... 27,847,468.78 Other Real Estate M ortgages.................... 3,442,217.83 Banking Houses O w ned.............................. 11,326,682.64 Customers’ Liability for Acceptances . . 6,718,302.32 Other A ssets.................................................. 2,645,236.30 Liability of Others on Bills Sold Endorsed ____ 5,880,608.22 $1,266,915,927.99 LIABILITIES Capital (2,000,000 shares) $20,000,000.00 S urplus.............................. 30,000,000.00 Undivided Profits . . . 16,622,900.09 $ 66,622,900.09 Quarterly Dividend Payable January 3,1949 600,000.00 Year End Dividend Payable January 3,1949 200,000.00 D e p o s i t s ........................... 1,127,930,087.78 Certified and Official C h e c k s 52,842,122.61 Acceptances O u ts ta n d in g 8,369,484.15 Other Liabilities, Reserve for Taxes, etc. . 4,470,725.14 Bills Sold With Our Endorsement . . . 5,880,608.22 $1,266,915,927.99 . GEORGE L. MORRISON President, General Baking Company December 3 1 , 1 9 4 8 W ILLIAM J. M URRAY, JR. President and Chairman, McKesson & Rohbins, Inc. FRANK F. RUSSELL President, Cerro de Pasco Copper Corporation FREDERICK SHEFFIELD Webster, Sheffield & Horan PHILIP YOUNG Dean, Columbia University School of Business https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . "FLEXIBLE Of the above assets $83,405,856.59 are pledged to secure public deposits and for other purposes ; and certain of the above deposits are preferred as provided by law. Member Federal Reserve System Member Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , 1949 50 C o n tin en ta l I llin o is N a tio n al B an k and T rust C o m pany OF C H IC A G O Statement o f Condition, December 31, 1948 R E SO U R C E S Cash and D ue from Banks.............................................................$ 674,458,774.29 United States Governm ent O bligations.................................... 1,132,234,194.34 Other Bonds and Securities.......................................................... 68,027,926.90 Loans and D iscou n ts...................................................................... 458,734,635.66 Stock in Federal Reserve B ank..................................................... 4,500,000.00 Customers’ Liability on A cceptan ces......................................... 1,922,284.48 Incom e A ccrued but N ot C ollected ............................................ 6,650,180.56 Banking H o u s e ................................................................................ 9,900,000.00 $2,356,427,996.23 L IA B IL IT IE S Deposits ............................................................................................. $2,159,926,637.03 Acceptances ..................................................................................... 1,954,426.48 Reserve for Taxes, Interest, andE xpenses............................... Reserve for C ontingencies.......................... 6,866,059.04 18,107,975.36 Incom e Collected but N ot E arned.............................................. 520,284.04 Capital Stock .............................................. 60,000,000.00 S u r p lu s .............................................................................................. 90,000,000.00 U ndivided P r o f it s ........................................................................... 19,052,614.28 $2,356,427,996.23 United States Government obligations carried at $225,30 9 ,9 78 .34 are pledged to secure public and trust deposits and for other purposes as required or permitted by law M e m b e r F ederal D e p o s it Insu ran ce C orporation N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 i n v e s t m e n t s W hile "Peg*' Keeps Interest Rates Same: M u n icipals and R a ils Should R e G ood In com e Sources in 1 0 4 0 Critics of Government Bond Policies Fighting Losing Battle as Question Reaches A cadem ic Stage By RAYMOND TRIGGER investment Analyst New York City RITICS of the Federal govern ment’s policies on prices of gov ernment obligations have, as they have long had, an excellent case, in theory, at any rate. The whole philosophy may be as wrong and dangerous as it is said to be. Never theless, the critics are fighting a los ing battle. Leaders of the investment banking fraternity gathered in Florida last De cember and considered the pegging policy, among other things. Albeit grudgingly, and by no means unani mously, the committee charged with this particular problem came up with a qualified endorsement of continuing the pegs. The New York Times, in its customary and thoughtful style, edi torialized to the effect that the alter native to pegging was worse than the pegs, basing its conclusion mainly on the theory that what happened to 25 billion bonds after World War I would be much worse should it be allowed to happen to 250 billion bonds today. C Now Academic Question In any case, though, the question is rapidly passing into the academic stage. In the light of the November elections, who will doubt that the fiscal policies in force prior thereto will continue to be the official policy? An acute and informed investment banker recently addressed himself to the question. Aubrey G. Lanston told assembled savings bankers a few weeks ago that the present is “both too late and too early” to abandon pegging. Mr. Lanston argued that we cannot afford to eliminate the pegs at this time because their elimination would so shock lenders and investors that we would be pulling the rug out from under business. Although there are no indications https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This is a discussion of factors affecting your investment port folio. If you have any questions, or if you find yourself in dis agreement with comments here in, your letters, addressed to the NORTHWESTERN BANKER, will be welcome and will be answered here if the subject matter is of general interest. Under no cir cumstances will the editor of this column discuss specific securities. whatever of a change in general policy in Washington, there have been cer tain changes in its application in re cent months which may be a pattern of things to come. Out of the basically contradictory aims of checking inflationary tenden cies on the one hand, and holding up long-term governments on the other came the inevitably conflicting poli cies of pushing prices of short terms down and holding prices of the longs. The Reserve Banks, consequently, were able to sell short terms to com mercial banks while buying long terms from them and the insurance companies. One result was that the total held by the Reserve Banks did not expand as much as it might have otherwise. In fact, though, the program was becoming increasingly burdensome right up till Election Day. When the results were known, however, the pressure to sell long term bonds to the Reserve Banks evaporated, almost over-night. Indeed, prices of medium and long governments rose gently above the pegged levels. The insur ance companies ceased to sell longs in advance of anticipated needs; some are reported to have re-purchased earlier sales. New Headache Out of the welter of reverses, of course, emerged a new headache. The Reserves found themselves selling longs on balance and buying the shorts, even though the overall pat tern is out of joint and, theoretically, the shorts are cheaper and better buys than the longs. But the authorities do not want to let a vast amount of shorts settle in the hands of the Re serve banks. For the present, there is a solution of sorts. The Treasury Commercial banks . . . if cautious and prudent, as they should be, will trim sails in expectation of some surprise developments (government pro grams) by mid-1949. If business continues to boom and equity capital is as hard to find as it lias been for many months, the commercial banks likely will be asked to supply more and more working capital in the form of commercial loans. . . . insofar as governments are concerned, this writer holds that the shorts are the better buy now and will be even more attractive over nearby months and that the longs are over-priced and speculative retention could involve uncomfortable consequences . . . Well informed observers look for an active market in municipal securities in 1949 . . . The general pattern of interest rates will not undergo any significant change as long as prices of governments are unchanged . . . The commercial hank seeking adequate income ami serial maturities over a short to medium term normally finds rail equipment certificates per fectly suited to its needs. N o r t h w e s t e r n Banke r, J a n u a r y , 1949 52 Investments is in a comfortable cash position and can, and does, retire substantial amounts of shorts at fairly frequent intervals by using excess cash. All during the first quarter of 1949, the Treasury should be able to continue WHEELOCK & CUMMINS In corp orated Mem bers Chicago Stock Exchange Underwriters and Distributors of Investment Securities 200 Equitable Building Phone 4-7158 Teletype DM 184 135 South LaSalle Street Phone Andover 6700 Teletype CG 245 D E S M O IN E S , IO W A C H IC A G O , IL L IN O IS M em ber Federal Hom e Federal C orn e r Home Loan Sixth and G ran d Bank System MJilfl. STATEMENT OF CONDITION D e c em h e r H O M E 31, A m ple Pow ers 1948 F E D E R A L SAVINGS AND LOAN ASSOCIATION of Des Moines DIRECTORS C. B. Fletcher Chairman o f the B oard Arthur S. Kirk P resid en t Dr. Lawrence E. Kelley V ic e P resid en t Jonathan M. Fletcher ASSETS Cash Investments and Securities Cash on Hand and in Banks. .$1,227,457.64 U. S. Bonds ............................... 890,266.16 $ 2,117,723.80 Federal Home Loan Bank Stock.................... First Mortgage Loans ....................................... ......................... FHA Improvement Loans Loans on Passbooks and Cert'ficates.............. Home Federal Building and Equipment. . . . Other Assets ........................................................ 150,000.00 9,627,393.33 56,572.27 36,739.22 246,304.35 14,927.05 E x e c u tiv e V ic e P resid en t $12,249,660.02 Harold J. Howe C ounsel Joseph N / Chamberlain R ea l E sta te & Insu rance Dr. John L. Hillman P resid en t E m eritus, Sim pson C olleg e Dr. Marvin J. Houghton D e n tist J. T. Schilling LI ABILIT IES Savings and Investment Share Accounts $11,370,882.21 Dividends Declared and Unpaid ............ 130,507.54 Loans in Process .................................................. 112,499.05 Other Liabilities ................................................ 17,501.54 Specific Reserves ................................................ 1,276.01 Reserves Reserve for Contingencies . . . . $ 250,000.00 Federal Insurance R e s e r v e .... 316,933.67 Unallocated Reserve ............... 50,000.00 616,993.67 Iow a P ow er & L ig h t Co. $12,249,660.02 GROWTH OF THE HOME FEDERAL Organized under State Charter— May 6, 1936 Issued Certificate for Federal Insurance of Accounts— September 21, 1936 Converted to Federal Charter— April 28, 1939 ASSETS December 31, 1936......................$ 22,781.88 December December December 31, 1937..................... 219,879.90 December December 31, 1938..................... 473,286.99 December December 31, 1939..................... 908,953.20 December December 31, 1940..................... 1,519,623.15 December December 31, 1941......................$2,007,458.08 December N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis this anti-inflationary policy, but the day of reckoning cannot be far off. By the advent of the second 1949 quarter, this check on inflation may have been exhausted. At that stage, even higher short-term rates would be the logical expectation. Presum ably investors will accept the bait and buy shorts, while selling longs. The problems of pre-election months will re-appear. The burden of maintaining prices on long-terms will g r o w heavier by mid-1949. All of this must be well-known to the authorities and they appear to be acting in anticipation of some such development. That is, they are quite ready to sell longs on any modest rise in prices. Evidence of such wil lingness was the first chill admin istered to the market in longs follow ing the elections. It took a lot of the glamour out of buying longs on the theory that the pegs are inviolate and that there might be a nice little profit to be garnered by buying longs for a turn. 31, 1942...................... 2,382,920.45 31, 1943...................... 3,385,610.88 31, 19 4 4 .................... 5,610,071.53 31, 1945...................... 6,722,411.21 31, 1946....................... 8,919,749.94 31, 1947....................... 10,863,435.23 31, 1948....................... 12,249,660.02 Although the Treasury and its run ning mate, the Reserve Banks, have no easy way out of the dilemma, they have ample powers to cope with al most any situation. In addition, they are blessed with remarkably ingen ious staff workers who can, and do, think up endless ways of imposing artificial control on the market. In 1949, who can doubt, any agreed-upon program, if endorsed by the Presi dent, should be pushed through Con gress without too much difficulty. No one knows just what program will be pushed, but it is clear that new restrictions on a free market will be sought—and obtained, and im posed. There is no reason to suppose that the commercial banks will come out of the situation in a position to assume greater risks. If cautious and prudent, as they should be. they will trim sails in expectation of some sur prise developments by mid-1949. If business continues to boom and equity capital is as hard to find as it has been for many months, the com mercial banks likely will be asked to supply more and more working cap ital in the form of commercial loans. If business droops, the more liquid the banks the better. And, while a pegged long-term government may look like a highly liquid asset, despite its actual maturity, it is not the same thing as a short-term obligation. M a y Be M odified Then, too, although the theory of pegs may be adhered to, the method and application may be modified in the light of some future problem. A peg is a peg, whether it be at 101 or 98. Investments A RECORD H IG H L E V E L of about $400,000,000 of equipment trust certificates was reached by the nation’s Class I railroads last year, with the grand total of obligations outstanding at the close o f 1948 standing at about 1.5 billion. The outlook for 1949 is a continuous upward trend and authorities say the investmentstatus o f equipment trust certificates is remarkably high because of the enviable record o f prompt payment o f principal and interest. But longs bought at 101 Vz, on the gamble that only a half-point could be lost at worst, would look like a pretty poor speculation if the limited loss of half a point turned out to be a potential loss of three and one-half points. Such a dip wipes out a good many months’ interest under prevail ing condition. Thus, insofar as governments are concerned, this writer holds that the shorts are the better buys now and will be even more attractive over nearby months and that the longs are over-priced and speculative retention could involve uncomfortable conse quences. The average bank has other invest ment opportunities than governments in any case. Brief comment is sub mitted on municipals and railroad equipments and their 1949 prospects in the following paragraphs. Well informed observers look for Now Available on Request . . . \ fortnightly (YIslw A , commentary A FREE In vesto rs S e rv ic e D e sig n e d to G iv e Busy Bankers an d Business M e n T im e ly an d H e lp fu l In fo rm a tio n on th e Business O u tlo o k a n d M a r k e t T re n d s. 53 CANADA offers y o u r clients OPPORTUNITIES UNLIMITED.. . . . . opportunities to every United States banker who wishes to further the interests o f his clients in this vast and rapidly ex panding market. Since 1817 the Bank of Montreal has helped Canada grow . . . has grown with it. And as the first Cana dian bank with a United States office, it has a long and successful record of assisting American bankers and busi nessmen in transacting Canadian business. We invite you— and your clients— to use the facilities of our offices in New York, Chicago, or San Fran cisco, or our Foreign Department in Montreal. * * * For up-to-date information on establishing a plant in Canada, or on Canadian exporting or im p o rtin g , ask the B o fM . As a starter, we’ll send you our 100-page, fact-packed booklet “ Canada T oday.” Write for booklet C-50toany o f our U. S. offices, or to our F oreign D e p a rtm e n t in Montreal. B a n k , of S E N D F O R T H IS S E R V IC E T O D A Y M o n t r e a l Canada’s First ‘•Bank 8 8 InCanada since i i y . .. In U.S. since i yg u. s. HOLLEY, D A Y T O N & GERNON 27 333 M em bers C h icago S to c k Exchange and C h icago Board of Trade 105 SOUTH LA SALLE STREET, CHICAGO 3, ILLINOIS HEAD OFFICE MONTREAL Phone: C e n tra l 6-0780 M A D IS O N , W IS . • F O N D DU LA C , W IS . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LA C R O S S E , W IS . • * M IN N E A P O L IS , M IN N . 64 NE W Y O R K ................. Wall St. C H IC A G O .......... S. La Salle St. SAN FRA N C ISCO California St. LONDO N 47 Threadneedle St., E. C. 2 9Waterloo Place, S. W. 1 EAU C L A IR E , W IS . • W A U S A U , W IS . RESO U RCES OVER 1 900 , 000,000 $ , N o r t h w e s t e r n Banker, J a n u a r y , 1949 54 Investments an active market in municipal securi ties in 1949. Increased expenditures for schools, hospitals, and other social welfare undertakings, will c a u s e larger financing by public agencies. In particular, the certain, determined intervention of the national admin istration, on a broad scale, to coun teract any downturn by the business cycle will require heavily increased borrowings for public works and re lief programs. IN V E S T M E N T SE C U R IT IE S Public Utility Industrial Ample Municipals Railroad Municipal A .C .A L L Y N ^ dc o m pan y Incorporated 100 W e s t N ew Y ork M ilw a u k e e O m ah a W a te r lo o M o n ro e No one can predict with any assur ance how far the governmental agencies and particularly the Federal ones will go in efforts to offset a downturn in general business activ ity, but there is no indication that they will be backward or hesitant in tackling these problems. In addition to these so-called “compensated econ omy” expenditures, there are many public spending programs, previously deferred because of shortages of materials and labor, and, in some in stances, high prices. They likely would be revived, should materials be in greater supply or prices tend to soften. S tre e t, C h ic a g o B o s to n K an sa s C ity M in n e a p o lis M o lin e Thus, there should be an ample supply of municipal credits of all types and qualities coming on the market in 1949. Demand, too, is bound to be satisfactory as higher taxes on incomes enhance the exemption from taxation offered by municipal obliga tions. The general pattern of interest rates will not undergo any significant change as long as the key to the entire structure— the prices of gov ernments—is unchanged and this, of course, is the prospect. Should there be a decline in general business activ ity and should the fiscal authorities decide to combat it by lowering re serve requirements, there would fol low an expanded demand for mediumterm maturities from the commercial banks. In sum, the municipal market in 1949 should be a broad and active one, with little likelihood of prices falling and some possibility of a higher level. Accordingly, even those commercial banks little concerned with tax ex emption should watch sympatheti cally the municipal market and, if anything, incline toward expanding inventory during the year and cer tainly replacing maturing holdings. Rails Set Record AIR CONDITIONED FOR HEALTH AND COMFORT ★ \ BAKER HOTEL The ultimate in facilities for recreation a nd re juvenation. O th e r o u t s t a n d in g fe a tu re s include the finest in therapeutic b ath s w ith com plete m a ssa ge . L u x u rio u s a c c o m m o d a tions. Beautiful g ro u n d s w ith an eighth-m ile sun v e ra n d a . O u td o o r activities at their best. Rooms from $3. J V *y listed by committee on American Health Resorts of the American Medical Association MINERAL WELLS, ZfestxJ N o r t h w e s t e r n Ba nker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 A recent summary and forecast by a highly regarded authority on invest ments dealing with the rail equipment market concludes, in effect, along these lines. The year 1948 saw a record high level—around $400,000,000 —of equipment trust certificates sold by the Class I roads. About $1,100,000,000 face value of these obligations were outstanding at the close of the year. If conditional sales agreements covering rolling stock are included, the grand total at the end of 1948 was in the neighborhood of one and onehalf billion. The heavy financing of this type in 1948 was a direct reflection of the close to $1,000,000,000 spent by the Investments roads for new equipment, in turn the result of parsimony enforced on the roads in the thirties and the unsat isfied demand created during the war years. The outlook is for a continua tion of the trend during 1949 in view of the heavy orders placed by the roads. As of a recent date, the Class I carriers had placed orders for 1,630 locomotives and more than 100,000 new freight cars. The investment status of equipment trust certificates is remarkably high because of the enviable record of prompt payment of principal and dividends (interest). The roads can not get along without rolling stock in any case and, usually, certificates are margined with down payments of from 15 per cent to 25 per cent. Cer tificates mature serially, thus steadily increasing the equity since these obli gations are reduced much faster than the underlying security wears out. (Continued from page 26) ing United States securities at amor tized cost. The investment advantages are that it fosters the kind of unpreju diced investment action, calm judg ment and mental equilibrium so essen tial to sound portfolio management, which could not be realized, if, for ex ample, at some time in the future, bonds might have to be written down As it happens, the investment bankers usually identified with the public offering of new rail equipment obligations are a fairly small group with long experience and well-defined, even rigid, notions as to indenture terms and other details. The pricing is semi-automatic, geared closely to going markets for governments. Al though not wholly ignored, the credit of issuing road is not the allimportant factor because of the un usual safe-guards thrown around equipment trust issues and the nature of the security, the actual locomotives and freight cars. These, under almost any conceivable conditions, more than pay their own way; that is, they earn more for the road using them than they cost to rent. Additionally, be cause of the high degree of standardi zation of r a i l r o a d e q u i p m e n t generally, freight cars and locomo tives could, in an extreme emergency, probably be taken back by the trustee and leased to another carrier. The commercial bank seeking ade quate income and serial maturities over a short to medium term, then, normally finds rail equipment certifi cates perfectly suited to its needs.— The End. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Current Conditions I would like to make three sugges tions specifically related to current conditions. Please note that they fall squarely within the framework of the rules given. If they did not fall with in that framework, the rules given would be inadequate, for they are in tended to cover under all conditions. I N F O R M E D A C TION IS T H E KEY TO S U C C E S S F U L IN V E S T IN G Send For Year-End Survey A quick yet comprehensive survey of the activities and influences operating in the bond market as a whole—and in each major classification. Gain a better understanding of past trends and a basis for future judgment. A reading of this survey will benefit every bond investor. Included is a partial list of Halsey, Stuart’s offerings in 1948. Upon request, a copy will Good 1949 Outlook There is nothing to indicate that any of the essential features of this type of security will suffer deteriora tion in 1949. And, since the supply again promises to be larger than nor mal, many commercial banks which have placed little emphasis on rail equipment certificates because they have been available in too small an amount, or too infrequently, may well revise their previous attitude. to market by an unknown amount be cause of some temporary recession in prices. SIX RULES FO R IN V E S T IN G B A N K FU N D S be sent without obligation. Write for leaflet NB-8. HALSEY, STUART & CO. Inc CHICAGO 90, 123 SOUTH LA SA LL E STREET • N E W YORK 5, 3 5 WALL STREET • A N D OTHER P R I N C I PA L C I T IE S ACCENT ON DISTINCTIVENESS I N ten short years we have almost sold the idea of printed names on per sonal checks. Throughout that period we have emphasized the idea, and it is now so close to being com pletely sold that we can begin to emphasize the distinctiveness of our package. W E think we enjoy two advantages over others who produce personalized checks. First, we have the momentum of an early start. Second, we are men tally attuned to handling small orders. As a consequence our efforts have not been expended trying to convince ourselves that we should go after the per sonalized check market, because if we had not been convinced of that we never would have started. Our efforts have been directed towards serving the mar ket better w ith a p rogressively im proved package. S O , when you offer to your customers — for $ 1 .3 5 — two hundred D eL u xe Personalized Checks, you are not merely offering imprinted checks but rather imprinted checks of high quality. The quality o f the printing is right up to par. The quality of the paper is nationally recognized. The binding and the general workmanship are pro fessional. And all the checks are consec utively numbered. Even the pretty red box which completes the package adds considerably to its value. IF, therefore, you feel that you must offer personalized service to your customers — and it is becoming a “ must” — don’t, for goodness’ sake, compromise as far as quality is concerned. Y o u don’t have to. Y o u can accent distinctiveness with the DeLuxe package. W e will not only make it for you . . . we will help you sell it. Deluxe Manufacturing Plants at: NEW Y O R K , C L E V E L A N D , CH ICA GO , K A N S A S C IT Y , ST. PA U L CHECK PRINTERS cPnc. N o r t h w e s t e r n Banker, J a n u a r y , 1949 56 Investments My three suggestions specifically re lated to current conditions are as fol lows: 1. At this time, new investments for ready availability should be con fined largely to Treasury Bills and Certificates of Indebtedness. 2. At this time, maturities should not be extended beyond what is required and desired to increase or stabilize income. 3. At this time, and at all times, in a properly run bank, no concern should be felt because of book losses in holdings of United States Government securities if such se curities are carried at amortized cost. The first suggestion, to buy Treas ury Bills and Certificates of Indebted ness for ready availability, follows from the fact that these securities give relatively good rates of return today, Bank Insurance Problems? Expert advice, excellent coverage and an excellent company. You get all this when you insure with the Saint Paul-M ercury Indemnity Company. Call a Saint Paul agent! B A N K E R ’S BLANKET BONDS ■'N SÄINT PAUL-MERCURY INDEMN — •; Y 111 WEST FIFTH STREET, STiP P— — Federal H om e Loan Bank o f Des Moines DES MOINES, IOWA S T A T E M E N T OF CO N D ITIO N , D ECE M B ER 31, 1948 R E S O U R C E S C ash ........................................ $ 7 9 9 ,3 4 3 .4 0 U. S . G o v e rn m e n t O b lig a t io n s . 1 7 , 5 9 0 , 8 0 2 . 4 4 A d v a n c e s to M e m b e r s ............. 3 2 , 8 7 4 , 9 0 4 . 6 8 C o n so lid a te d O b lig a t io n s — E x p e n se ............................... 1 1 ,6 0 7 .7 6 A c c ru e d In te re st R e c e iv a b le . . . 4 6 ,6 3 1 .2 6 O th e r R e s o u r c e s ...................... 6 9 4 .2 0 F u r n it u r e a n d E q u ip m e n t ( C o s t $ 1 0 , 5 7 5 . 6 6 ) ........... 1 .0 0 $5 1 ,3 2 3 ,9 8 4 .7 4 L I A B I L I T I E S A N D C A P D e p o s it s — - M e m b e rs . . . . $ 4 , 9 0 2 D e p o s it s — O t h e r s ............. 35 A c c ru e d In te re st P a y a b le . . 291 A c c o u n t s P a y a b le ............. D iv id e n d s P a y a b le — J a n u a r y 7, 1 9 4 9 ........... 113 * C o n s o lid a te d O b lig a tio n s O u t s t a n d in g .................... 2 9 , 0 0 0 "C a p it a l S t o c k S u b s c r ip t io n s P a id In ........................... 1 5 , 2 5 3 S u r p lu s : R e se rve s $ 1 , 6 4 1 , 4 3 3 . 1 7 U n d iv id e d P r o fits 8 5 ,7 3 6 .1 7 1 ,7 2 7 N ew Bank i T A L 6 3 0 .9 0 000.00 8 2 7 .0 8 4 3 4 .3 0 92 3 .1 2 000.00 000.00 $ 5 1 ,3 2 3 ,9 8 4 .7 4 "P a r t ic ip a t io n in $ 4 1 4 , 6 3 0 , 0 0 0 C o n s o lid a te d F e d e ra l H o m e L o a n B a n k O b lig a t io n s issued b y the H o m e L o a n B a n k B o a r d a n d now o u t st a n d in g , w h ic h a re th e j o in t a n d several o b lig a t io n s o f the eleven F e d e ra l H o m e L o a n B a n k s . ’ O n J a n u a r y 3 , 1 9 4 9 , t h i s B a n k retired $ 2 9 5 , 8 0 0 of its c a p ita l sto ck o w ned by the U . S. G o v e rn m e n t in a cc o rd a n ce w ith S e c tio n 6 ( g ) o f th e F e d e ra l H o m e L o a n B a n k A c t. N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis are of short maturity, and enjoy an unequalecl degree of marketability. The second suggestion, that today maturities should not be extended beyond what is required and desired to increase or stabilize income, follows from the fact that I do not think we can count on any reversal in the up ward trend of interest rates so long as business continues at a high level. My third and final suggestion for well-run banks, is not to worry about book losses in holdings of United States Government bonds carried at amortized cost. Such losses will auto matically disappear with the passage of time. The rise in interest rates which produced them is resulting in higher earnings being received on funds currently loaned or invested than could have been realized if in terest rates were lower and the bonds in question showed a book profit. Further, where such investments were made for income and as a hedge against lower interest rates, they must be expected to show book losses from time to time when interest rates are higher than when the investments were made. A hedge cannot be ex pected to work two ways. Little need be said regarding the automatic disappearance of book losses with the passage of time. That is cer tain, if the bonds are retained. At maturity they will be amortized to par and par will be paid. Finally, and for the record, I have not been referring to book losses re sulting from investments dictated by greed, which never should have been made or continued, or those which re sulted from an abortive effort to secure profits by speculation. Book losses resulting from such undertakings should properly cause great pain and serve as a lesson. This may sound harsh, but I believe it is justified when bankers allow temporary conditions to sway them from a sound investment policy. Those bankers, on the other hand, who stick to a sound investment policy under all conditions will have no cause for sorrow.—The End. The National Bank of Joliet, Illinois, the city’s newest financial institution, chartered on September 7, 1948, by the Comptroller of Currency, opened last month, as announced by Mortimer Goodwin, president. The new bank, organized by a group of prominent Joliet citizens, opened with a total capitalization of $250,000, entirely subscribed by Joliet people. The bank is a member of the Fed eral Reserve System, the American Bankers Association and the Federal Deposit Insurance Corporation. 57 IN S U R A N C E ff##ir iuuoroHtvv an ff##*######* to ff# Spite o f flit/h L oa' in te e x a T Retirement Income Sidesteps Difficult Problems of Taxes and Interest in Later Years By ROBERT SMYTH District Manager, Equitable Life Assurance Society, Fort Dodge, Iowa (E ditor’ s N ote: The accompanying article is w ritten in the same ynanner with which the author, Robert Smyth, conducts his interview's on this par ticular type of coverage. F or con tinuity, Mr. Smyth’s selling interview is carried through without interjec tion of questions by the prospect. Mr. Smyth is a m em ber of the Equitable Society’s Half-Million Dollar Club and an outstanding Iowa producer.) R. SMITH, I have known for some time that you are quite successful, and a smart busi ness man. I know also that you must have been making some money, and anyone I know who has made money these last few years has had a prob lem of investing it to any advantage. Even if you can get a mortgage at 4 per cent and have the income every year, it probably doesn’t net you much over 2% per cent by the time you pay the tax on it. However, if you invest in income insurance, that money accumulates and the interest isn’t paid out under ordinary circum stances until you are 65. At that time, if you take the income by the month instead of the cash (which, of course, would be available to you) you would enter as taxable income only 3 per cent of the original investment and the rest of the income would not be taxed until the amount so drawn would equal the original face. Even that is only half the story because after age 65 you and your wife each have an extra $600 exemp tion. This makes $2,400 for the two of you before you even start to be taxed, so you see why people who M ROBERT SM YTH “ Old principle of having your eggs in different baskets is important” understand this condition are putting thousands of dollars into such invest ments. Right now it would be hard to find a good 80 acre farm that you could buy for $18,000, but you can put from 15 to 18 thousand dollars into income insurance and have $100 a month guaranteed for life after age 65. Now I realize, Mr. Smith, that you don’t need life insurance. There isn’t a bit of question that you could do without it. In fact you could do with out your automobile and go on living. You could do without that extra farm you bought, but the reason you Did you know that our Cash Letter Policy not only gives protection but enables you to cut operat ing expenses substantially? Ask us for details. You will not obligate yourself. F IR S T N A T IO N A L B A N K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B U IL D IN G C H IC A G O bought it is because you figured it was advantageous to you to have it. Now, Mr. Smith, the old principle of having your eggs in different baskets is a mighty important one. People worth hundreds of thousands of dollars in the 1930’s were embar rassed for cash many times because they had all their money in excellent but frozen investments. This invest ment is about the surest thing you could have to keep ready cash handy if times are different. Another thing that you will agree with is that 30 years is a long time. If you dropped off in a few years and your wife had to manage all your present holdings, lots of things could happen. Among these ordinary in vestments you don’t have a thing that guarantees her an income. The reason everything goes so excellently for you now is because you are handling it. You may not realize it, but you are far above the average in handling money. Since that is the case, what difference does it make to you if you invest a couple of thousand a year in an investment that might conceivably make you only 3 per cent if you live, when we will guarantee to complete the investment if you die and guaran tee your wife a sure income? I’ll bet she has gotten up early and has made a lot of good breakfasts for you dur ing her lifetime, and surely she is worth doing something like this for, especially when you are helping your self in regard to this tax and interest problem. Of course, you may not be able to qualify for this investment, but if you Scarborough & Company Insurance C ounselorsto Banks 3, IL L IN O IS STATE 4325 Northw estern Banker, J a n u a r y , 1949 58 insurance can pass an examination we will be glad to get this contract out for you to see, and the way taxes and interest are at present, I think it would pay you well to study the matter.—The End. to the Iowa banking department as a senior examiner, then during the past year organized and operated Corbin’s Market Letter, an investment advis ory service. The Merchants Mutual Bonding Company was organized in 1934 and insurance Counsel Martin J. Corbin of Des Moines has been made counsel for the Merchants Mutual Bonding Company and the Northern Casualty Company (mutu al), both Des Moines companies, ef fective January 1. This announcement was made by Elmer H. Warner who is secretarytreasurer and manager of the Mer chants Mutual and president of the Northern Casualty. Mr. Corbin’s appointment will be of particular interest to Iowa bankers since he was formerly connected with the Iowa banking department. He is a native of Des Moines, graduating from Des Moines public and high schools. He received his law degree from Drake University and was ad mitted to the bar. Mr. Corbin served two years with an investment counsel firm in New York City and was with the Iowa state bank ing department as an assistant ex aminer and later as a junior examiner between 1940 and 1942. After a year and a half in army service, he returned Film m its iif Progress W e are proud of our record in the Insurance field and of our Banker Representatives. M A R T IN J. CO RBIN W ith Merchants Mutual Bonding has made an excellent growth as a strictly bonding company. The North ern Casualty was organized in 1932 as a bonding company and a year ago it was converted into a casualty com pany, writing all lines of automobile coverage and farm liability. These two companies, which are both domiciled in Des Moines, had a premium volume in excess of $200,000 in 1948. Merchants Mutual Bonding Com pany officers include M. O. Milligan, president, E. H. Warner, secretarytreasurer and manager, W. W. Warn er, assistant secretary, and Northern Casualty officers are E. H. Warner, president, Estelle W. Oakes, secretary, M. O. Milligan, treasurer, and W. W. Warner, assistant secretary. Central National Elects Stew art Walter L. Stewart, an attorney and director of the bank, was elected vice chairman of the board of directors of the Central National Bank & Trust Company, Des Moines. Emil Bowlin was promoted from assistant cashier to vice president, and Don Keller of the budget loan depart ment was elected an assistant cashier. Other directors of the Central Na tional are William J. Goodwin, chair man of the board; E. F. Buckley, A. T. Donhowe, Harry Goldman, Robert K. Goodwin. W. J. Goodwin, Jr., H. F. Gross, B. Rees Jones, Edward A. Kim ball, Guy E. Logan, Walter E. Muir, George A. Peak, Julian A. Peverill and Frank R. Warden. Officers re-elected are Buckley, presi dent; Warden, Donhowe, Lehman Plummer, Fred H. Quiner, Emmett E. Johns, J. R. Capps, Irwin Abram and W. G. Kane, vice presidents; H. C. Winder, cashier; G. W. Bartmess, Jr., J. E. Quiner, D. R. Withington, C. M. Larson, George Nelson and Dale C. Smith, assistant cashiers. Also the following estate and trust department officials: Noel T. Robin son, vice president and trust officer, and I. L. Wright, Albert C. Roberts and Raymond W. Jones, trust officers. Promotions Year-end promotions at California Bank, Los Angeles, recently announced by Frank L. King, president, included the following: To vice president, C. Bankers: W e specialize in writing Automobile W e write a complete line of Fire - Windstorm - Automo bile & Plate Glass Insurance WESTERS MUTUAL FIRE INSURANCE COMPANY NINTH & GRAND DES MOINES 8, IOWA “ Mutual Insurance Is American Insurance” N o r t h w e s t e r n Ba nker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and H ead s Association Lester T. Jones, vice president of the Town Mutual Dwelling Insurance Company, Des Moines, has been elected president of the Iowa Associa tion of Mutual Insurance Associations. He served last year as vice president of the Iowa Association. Dividend At the meeting of the board of di rectors of The Northern Trust Com pany, Chicago, held last month, the 204th consecutive quarterly dividend of $4.50 was declared payable January 3, 1949, to stockholders of record at the close of business December 21st. Fire Insurance ★ CENTRAL STATES MUTUAL INSURANCE ASSOCIATION Mt. Pleasant, Io w a ï. A. H A Y IS , Frmtldtni O. T, W IL S O N . Secretary StUblhkmd 1929 Insurance C. Pearson; to assistant vice presi dents, H. V. Grice, Herbert C. House, Fred S. Huber, Rudolph Ostengaard and Fred G. Tanner, Jr. Herbert M. Bushnell H. M. Bushnell, president of the United States National Bank of Oma ha, died suddenly on Monday, Janu ary 10th. poration, Granite City, Illinois, and Clark R. Gamble, president, Brown Shoe Company, St. Louis, were elected to the board of directors. Mr. Whitehead is vice president, Railway Supply Manufacturers Asso ciation and a member of the Govern ing Board of Railway Business Asso ciation. Mr. Gamble has been president of Brown Shoe Company since Febru ary, 1948. All other directors and all officers of the Bank were re-elected. D EA R E D IT O R (Continued from page 13) many years and now have a folder filled with them. This folder is popular with transient guests. It has passed through many hands and has been viewed with en thusiasm. We want you to know the en joyment these pictures bring.” W. 0. Heed, 498 Kensington Place, Pasadena 5, Califor nia 59 "Enjoy Each Issue" “ We truly enjoy every issue of the N orthw estern B anker which serves the banking fraternity so well.” C. W. Fowler, President, Poweshiek County Savings Banlc, Brooklyn, Iowa M ERCHANTS MUTUA L BONDING COMPANY Incorporated 1933 Home Office SAVINGS & LOAN BUILDING Des M oines, Iowa "Splendid Cover" H E R B E R T M. B U S H N E L L “ Please allow me to express our great appreciation for the splendid cover display you gave the picture of our bank lobby in your December issue of the N orthw estern B an k e r . It shows up well, and we are deeply grateful for your having used it so effectively.” W. L. Boss, Vice President, First National Bank o f St. Paul, St. Paul, Minnesota This is Iowa’ s oldest surety company. A progressive company with experi enced, conservative management. W e are proud of our two hundred and fifty bank agents in Iowa. To be the exclusive representative of this company is an asset to your bank. "Long Live the NW B" Mr. Bushnell was born in Lincoln, Nebraska, on July 1, 1893. He received his law degree from the University of Nebraska in 1919, and that same year joined the investment depart ment of the United States National Bank. He later became trust officer, then a vice president, moving up through that position to executive vice president and eventually president. He had been a director of the bank since 1928. At the annual meeting, which was held on the day Mr. Bushnell died, he was to have been elected chairman of the board. Ellsworth Moser was elected president of the bank. Nam ed Librarian Gertrude E. Fitzgerald has been ap pointed librarian of the American Bankers Association, it was announced by Harold Stonier, executive manager of the association. Miss Fitzgerald has been a member of the A.B.A. staff for the past twelve years. Elected to Board At the annual meeting of stockhold ers of the First National Bank in St. Louis, Charles Powell Whitehead, president, General Steel Castings Cor https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “ We hope for you a very successful year in 1949 and our wish is -—- Long live the E. H . W A R N E R Secretary and Manager N orthw estern B a n k e r .” M. G. A ddidks, Vice Presi dent and Cashier, Citizens State Banlc, Donnellson, la. W . W . W ARNER Assistant Secretary YOU CAIV GET THESE ESSENTIAL CASUALTY COVERAGES FROM YOUR ALLIED MUTUAL AGENT What Is an ‘ Essential Coverage? It's protection a g a i n s t those exposures of busi ness men, employers and property owners which might result in y o u r bankruptcy should a jury return a verdict against you resulting in a heavy court judgment. "Allied Mutual P ay s" Full Coverage Compensation Liability * Elevator Public Liability • Tenants Public Outside Theft and Robbery Liability Automobile • Workmen's • Manufacturers Public Contractors Public Liability Liability • Farmers Owners, Landlords, and Liability • Residence and • Storekeeper's Burglary • Comprehensive Personal See Y ou r A ll ie d M u t u a l A g e n t A L L IE D M U T U A L CASUALTY COMPANY H A R O L D S. EV A N S, President Hubbell Building Des M oines 7, Iow a N o r t h w e s t e r n Banker, J a n u a r y , 1949 60 Statement of Condition December 31, 19^8 RESOURCES Cash and Due from Banks............... U. S. Government Obligations*. . . . Other Bonds and Securities*............ Loans and Discounts.......................... Stock in Federal Reserve Bank....... Customers’ Liability on Acceptances Income Earned but not Collected. . Banking House.................................... Other Resources.................................. $123,270,857.62 117,295,597.21 15,946,216.92 110,236,532.56 450,000.00 1,436,055.50 '820,537.17 3,000,000.00 46,170.66 Total Resources........................ $372,501,967.64 LIABILITIES Capital Stock................................................................................................. $ 5,000,000.00 Surplus............................................................................................................ 10,000,000.00 2,463,313.34 Undivided Profits......................................................................................... Reserve for Contingencies........................................................................... 3,407,893.36 Reserve for Interest, Taxes, etc................................................................. 1,295,145.34 Income Collected but not Earned............................................................. 1,274,025.85 Letters of Credit and Acceptances............................................................ 1,436,055.50 Deposits.......................................................................................................... 347,625,534.25 ( Deposits include U. S. Government War Loan Account $8,878,525.06) Total Liabilities................................................................................... $372,501,967.64 *United States Government and other securities carried at $59,244,257.92 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. N a tio n a l B ank of M in n e a p o lis M a rq u e tte A v e n u e — Sixth to Se ve n th Streets Member Federal Deposit Insurance Corporation A ffiliated with Northwest Bancorporation D I R EGT O R S J a m e s F . B ell Chairman, Committee on Finance and Technological Progress, General Mills, Inc. B e n t o n J. C a se Director, Janney, Semple, Hill & Company G . N e lso n D a y to n President, The Dayton Company S t e p h e n P. D u f f y President, Hall Hardware Company C larence R. C h an ey J oh n B. F a e g r e Vice Chairman of Board, Northwestern National Bank of Minneapolis G e o r g e B. C l if f o r d , Jr . Treasurer, The Cream of Wheat Corporation F r a n k T . H e f f e l f in g e r J oh n C r o sb y Director, General Mills, Inc. T h o m a s L. D a n ie l s President, Archer-Daniels-Midland Company o r t h w e s t e r n Banker, J a n u a r y , 1949 Digitized for NFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Faegre and Benson, Attorneys Chairman of Board, F. H. Peavey and Co. F. P e a v e y H e f f e l f in g e r Executive Vice President, F. H. Peavey and Co. C l a r e n c e E. H il l Chairman of Board, Northwestern National Bank of Minneapolis F r a n k P. L e sl ie Vice President and Treasurer, The John Leslie Paper Co. R o b e r t F . P a ck Chairman of Board, Northern States Power Company J oh n S. P il l s b u r y Chairman of Board, Pillsbury Mills, Inc. J o sep h F. R in g l a n d President, Northwestern National Bank of Minneapolis L u c ia n S. S tr o n g President and Treasurer, The Strong Scott Manufacturing Co. D. J. S tro u se President, Twin City Rapid Transit Company H aro ld W . Sw e att President, Minneapolis-Honeywell Regulator Company H a r o l d H . T e a r se Vice President and General Manager, Searle Grain Company J. C a m e r o n T hom son President, Northwest Bancorporation V a l e n t in e W u r t e l e President, Minnesota Linseed Oil Paint Company 61 N ew Director M in n e s o ta NEWS M. O. G R A N G A A R D President M inneapolis R O B ER T E. PYE Secre tary M inneapolis month and shown to the public at an open house affair a week before Christ F. A. Amundson, commissioner of mas. George W. Werstlein, cashier, banks for the state of Minnesota, and advised the bank’s many customers of associated with the state banking de the new installations with a broadside partment for twenty-five years, earlier mailing carrying pictures of the bank’s interior. Lower counters, modern fix this month tendered his resignation to Governor Luther Youngdahl, effec tures, soundproofing, fireproofing, air tive January 15, 1949. The announce conditioning and increased service fa ment was made by the governor’s cilities are part of the new improve ments. office. George A. Beito is president of the Mr. Amundson made known his fu ture plans by announcing that he has bank, and K. E. Lindbergh and Mrs. been elected vice president and direc Wanda J. Lee are assistant cashiers. tor of the Midway National Bank of Minnesota Deaths Saint Paul. Luther W. Johnson Mr. Amundson was to join the offi Luther W. Johnson, 57, co-founder cial staff of the bank January 17th, and president of the Geneva State according to A. L. Ritt, president. Bank, Geneva, Minnesota, died at his At the governor’s request, Mr. Amundson had withheld his resigna home following a long illness. Thirty-three years ago he was one tion for several months to carry out of the originators of the state bank at a program in the department, which has now been completed. The gover Geneva and had remained with it nor immediately announced the ap ever since. Before entering business in Geneva, pointment of Charles H. Wenzel, now deputy commissioner, as acting com he was associated with the First Na tional Bank of Albert Lea and the missioner of banks. Mr. Amundson was serving his Clarks Grove State Bank. William D. Grashius twenty-sixth year with the State Bank William D. Grashius, president of ing Department of Minnesota. His first appointment was in 1923 as an the Citizens State Bank of Clara City, assistant bank examiner. He has filled Minnesota, died last month of a heart a number of positions in the depart attack. He was 55 years old. He had ment and had served as commissioner appeared to be in excellent health and had spent the previous day at work in for the past nine years. Mr. Amundson has written a num the bank. Lewis C. Newcombe ber of articles on bank examination Lewis C. Newcombe, 72, well known and supervision for banking and finan cial magazines. He has been active in Hibbing, Minnesota, banker, died at organization in the state capitol and his home two days before Christmas is now serving as secretary-treasurer of a heart attack. Mr. Newcombe had been connected of a special committee of state em ployes in connection with the state with the First National Bank of Hib bing since 1902, working his way up employes’ retirement fund. through various positions to that of executive vice president. Treasurer of Fair He was born in Bay City, Michigan, Gary P. Bauman, cashier of the Luverne National Bank, Luverne, Minne and moved to Hibbing in 1902. sota, was re-elected treasurer of the Edward P. Dupont Edward P. Dupont, 57, secretaryRock County Fair Association, of which he was also named director for treasurer of the Northwest Paper Company and a director of the First one year. National Bank of Cloquet, Minnesota, died early last month at his home. Finish Rem odeling Remodeling and redecoration of the Mr. Dupont had been active for many Northern State Bank, Thief River years in civic work in Cloquet and in Falls, Minnesota, was completed last that city’s business associations. F. A. Am undson Joins M id w a y National Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. C. Thomson, president of North west Bancorporation, has announced the election of Wilfred E. Rumble, St. Paul, to the board of directors of Northwest Bancorporation, to fill the vacancy created by the resignation of Frederick K. Weyerhaeuser. Member of the law firm of Doherty, Rumble, Butler & Mitchell, Mr. Rumble is a director and chairman of the executive committee of the Empire National Bank and Trust Company, St. Paul. National Secretary G. V. Markey, head of the building and loan department of the Minnesota Banking Department, has been elected secretary of the National Association of State Savings, Building and Loan Supervisors. Mr. Markey left the Adrian State Bank at Adrian to go with the banking department in the early 1920’s as an examiner. Later he was transferred to the department he now heads. M ove s to Minnesota H. N. Rye, who has served the past twenty and one-half years as vice pres ident and cashier at the Forest City Bank and Trust Company at Forest City, Iowa, has resigned to take over the duties of president of the First Na tional Bank at Emmons, Minnesota, filling the vacancy left by T. K. Troe, former vice president and cashier, who died several months ago. Mr. Rye has been in the banking business since 1914 when he took up banking in North Dakota. From there he did banking business in Iowa and Minnesota and in July, 1928, joined the staff of the Forest City Bank. During his career he helped incorpo rate banks in Kensett, Fertile and Ida Grove, Iowa. The First National Bank at Emmons was organized in 1903 and has assets of approximately $1,250,000. Mr. Rye announced that other personnel of the bank will remain the same. Retires at Adrian Retirement of W. E. Marston, for many years assistant cashier of the Adrian State Bank, Adrian, Minnesota, was announced last month. He will devote his attention to in come tax and bookkeeping service in an office in the new King Theater Building. Mr. Marston entered the banking business 32 years ago, after his gradu ation from Adrian high school. He had been employed in the Adrian bank practically all the time since he en tered the banking business, with the exception of a period in a Sioux Falls bank. N o r t h w e s t e r n Banke r, J a n u a r y , 1949 62 Minnesota News Carl Lind, assistant cashier at the First State Bank of Floodwood, Minne sota, for a number of years, has ac cepted a position at the Crookston National Bank at Crookston. Mr. Lind has been in the banking business since 1936. After completing his first year at Cambria, he went to Loup City, Nebraska, where he spent six months before moving to Floodwood. approval from the Comptroller of the Currency of the action taken by the board of directors and shareholders for an increase of $50,000 in the capi tal stock of the bank, by stock divi dend. As a result of this action, the capital stock is now $150,000 and the surplus $200,000. In addition, the bank has set aside a reserve of $25,000 for con tingencies, and, at present, has over $85,000 in undivided profits. Capital Increased M ove Back Into Bank Lynn S. Olson, president, announces that the First National Bank of Clo quet, Minnesota, has recently received The Clinton State Bank, Clinton, Minnesota, held open house last month as it moved into newly remodeled W ith Crookston Bank quarters. During remodeling opera tions the bank was housed in tempo rary quarters across the street from the regular bank building. Officers of the bank were hosts at the affair and welcomed guests from Clinton and surrounding territory. Plummer State Change George D. Allen, cashier of the Plummer State Bank at Plummer, Minnesota, resigned his position last month. Mr. Allen is succeeded by Arnold Newstrom of Aitkin, who had been assistant cashier of the Security State Bank in Aitkin. Duluth A.I.B. Officer O CX A//, The board of governors of Duluth Chapter, American Institute of Bank ing, last month appointed Thomas M. Spencer of the First and American National Bank as vice president. Mr. Spencer, who fills the unexpired term of William V. Polski, Jr., was named educational chairman of the chapter. Baird E. Hawley of Northwestern State Bank was named to succeed Mr. Spencer on the board of governors. Graceville Promotions R. J. McRae, president of the First State Bank of Graceville, Minnesota, recently announced the election of Rozelle E. Johnson and Marvin L. Andrews as assistant cashiers by the board of directors. Statement of Condition, December 31, 1948 RESOURCES Loans and Discounts...................................................... $ 3,633,613.77 Vaults and Fixtures........................................................ 1.00 Interest Earned Not Collected..................................... 77,201.14 U. S. Govt. Obligations.................... $ 8,850,743.22 Other Bonds and Securities............ 1,097,995.81 Cash and Due from Banks.............. 5,053,891.47 15,002,630.50 TOTAL......................................................................... $18,713,446.41 LIABILITIES Capital ............................................................................. $ 250,000.00 Surplus ............................................................................. 500,000.00 Undivided Profits and Reserves................................... 286,065.25 Reserved for Interest Expenses and Taxes.............. 113,820.93 Interest Collected Not Earned..................................... 12,418.59 Deposits ........................................................................... 17,551,141.64 TOTAL......................................................................... $18,713,446.41 The Stock Yards National Bank South Saint Paul, Minn. M EM B E R F E D E R A L D E P O S IT IN SU RANCE C O R P O R A T IO N N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cashier at Ellsworth James Wilson of Roseau, Minnesota, took over his duties as cashier of the Ellsworth State Bank at Ellsworth last month. He fills the vacancy left by E. W. Olson. Change Capital Structure An additional $150,000 fund has been added to the capital structure of the Union National Bank of Rochester, Minnesota, it was announced recently by Orval U. Habberstad, president. With the additional fund provided by stockholders, the capital of the bank was raised from $150,000 to $200,000, and surplus from $100,000 to $170,000, a total of $370,000. With undi vided profits and other reserves, the capital structure is now nearly a halfmillion dollars. Nam ed A ssistan t Cashier William T. Stoll has been appointed assistant cashier of the Farmers and Merchants State Bank of Pierz, Min nesota. He is a son of R. M. Stoll, cashier of the same bank. 63 as at December 31, 1948 First National Bank of Minneapolis D IR E C T O R S RESOURCES $ 1 1 1 ,7 5 3 ,3 0 5 .4 5 C a sh a n d D u e fr o m B anks 1 2 3 ,5 6 9 ,6 9 4 .2 1 U n i t e d S ta te s G o v e r n m e n t S e c u r it ie s 2 0 ,9 1 0 ,7 9 1 .5 5 O t h e r B o n d s a n d S e c u r it ie s L o a n s a n d D is c o u n t s . . . 1 0 8 ,3 8 2 ,2 6 7 .9 0 . A c c r u e d In t e r e s t a n d A c c o u n t s R e c e i v a b l e 8 1 2 ,7 6 8 .5 0 C u s to m e r s ’ A c c e p t a n c e L ia b ility 4 0 4 ,6 2 1 .5 0 B a n k P r e m is e s a n d F u r n it u r e a n d F ix tu r e s 1 9 8 ,5 6 6 .5 0 O t h e r R e a l E s ta te ( F o r F u t u r e D e v e l o p m e n t o f B a n k in g P r e m is e s ) 5 0 0 ,0 0 0 .0 0 O t h e r A s s e t s ...................................................... 1 ,9 2 2 ,3 8 0 .7 3 T o t a l R e s o u r c e s ........................................... $ 3 6 8 ,4 5 4 ,3 9 6 .3 4 LIABILITIES C a p i t a l S t o c k ...................................................... $ 6 ,0 0 0 ,0 0 0 .0 0 S u r p l u s ................................................................ 1 1 ,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 8 7 ,7 9 9 .4 6 G e n e r a l R e s e rv e fo r C o n tin g e n c ie s 2 ,1 0 8 ,3 6 9 .8 9 R e s e r v e fo r In te re st, E x p en ses, T a x e s , e tc. 3 ,4 4 7 ,1 7 1 .0 3 A c c e p t a n c e s a n d L e tte rs o f C r e d it 4 0 4 ,6 2 1 .5 0 . O t h e r L i a b i l i t i e s ........................................... D e m a n d D e p o s it s . $ 2 8 7 ,9 3 7 ,8 5 8 .8 4 T i m e D e p o s it s . . 4 8 4 ,1 3 1 .2 8 5 3 ,1 8 4 ,4 4 4 .3 4 T o ta l L i a b i l i t i e s ........................................... 3 4 1 ,1 2 2 ,3 0 3 .1 8 $ 3 6 8 ,4 5 4 ,3 9 6 .3 4 Henry E. Atwood, President Atherton Bean, Executive Vice President, International Milling Co. Russell H. Bennett, Treasurer, Meriden Iron Co. Daniel F. Bull, President The Cream of Wheat Corp. J. G. Byam, Vice President John Cowles, President, Minneapolis Star and Tribune Co. Donald D. Davis, President, Minnesota and Ontario Paper Co. Paul V. Eames, President, Shevlin-McCloud Lumber Co. Harry J. Harwick, Chairman, Mayo Association, Rochester, Minn. John H. Hauschild, Chairman of the Board, Chas. W. Sexton Co. W. L. Huff, Executive Vice President, Minneapolis-Honeywell Regulator Co. C. T. Jaffray, Chairman of the Board, First Bank Stock Corporation John H. MacMillan, Jr., President, Cargill, Inc. Sumner T. McKnight, President, S. T. McKnight Co. Howard I. McMillan, President, Osborne-McMillan Elevator Co. W. G. Northup, President, North Star Woolen Mill Co. S. G. Palmer, Retired Leslie N. Perrin, President, General Mills, Inc. A. F. Pillsbury, Director, Pillsbury Mills, Inc. H. R. Weesner, Chairman of the Board, The Wabash Screen Door Co. F. B. Wells, President, F. H. Peavey & Co. Alfred E. Wilson, Vice President and Chairman of Trust Committee 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 $54,395,400.00 in the foregoing statement are deposited to secure public funds and for other purposes required by law. MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • AFFILIATED W IT H FIRST BANK STOCK CORPORATION N o r t h w e s t e r n Banker, J a n u a r y , 1949 64 Minnesota N e w s Minneapolis bankers will play TdriveWO prominent roles in a nationwide for funds for a memorial student union building at Carleton College, Northfield, Minnesota. Malcolm Mc Donald, vice president of the First National Bank of Minneapolis, is na tional chairman of the Carleton alum ni fund committee, and Ellwood H. Newhart, assistant vice president of the Northwestern National Bank of Minneapolis, is a co-chairman of the Minneapolis area alumni fund com mittee. Clarence R. Chaney, vice chairman of the board of directors of the North western National Bank of Minneapolis, spoke on “The Importance of Retail Credit in the Community” at a recent meeting of the Retail Credit Associa tion of Minneapolis. Theodore B. Maier, vice president of the First National Bank of St. Paul, spoke on “Loans to Small Business” at a recent meeting of the St. Paul Association of Officemen. The Minnesota Bankers Association will publish and distribute Minnesota’s official centennial booklet, “Minnesota Spans a Century,” in cooperation with the Minnesota territorial centennial committee. The volume will be re leased March 3, 1949, the date of the state’s 100th anniversary. M. O. Grangaard, president of the association and a vice president of the First National Bank of Minneapolis, said the project has been approved by the association’s council. George E. Buscher, president of the Alexandria State Bank, heads the bankers com mittee which is collaborating with the Minnesota Historical Society and cen tennial committee. George W. Everitt of the First Na tional Bank of Minneapolis is serving as president of the Minneapolis As tronomy Club. Marquette National Bank of Minne apolis was host to employes at a Christmas party in the Curtis Hotel, Minneapolis. Gifts were distributed. Russell E. Stotesbery is president of the bank. First Robbinsdale State Bank has increased its capital from $35,000 to $70,000 by transfers of $25,000 from surplus and $10,000 from undivided profits. Steadily expanding deposits, a substantial demand for loans and a general increase in the bank’s activi ties were cited by Joseph W. Roche, vice president, as reasons underlying the change. The bank opened for business in 1919. Deposits as of last September 25th totaled $2,730,766. Located in Robbinsdale, Minneapolis suburb, it is affiliated with the First National Bank of Minneapolis and with the First Bank Stock Corporation. T. B. Howard is president of the bank, and Sven Grundstrom is cashier. Directors include H. A. Morse, Mr. Roche and Mr. Howard. SPECIAL OFFER Accident Insurance, $5000 Principal Sum for only $2.00 Paid Up in Full to the Middle of next lune. Ralph H. Grove of the First National Bank of St. Paul was among partici pants in a recent discussion of the St. Paul housing situation. Increasing prices of homes make mortgages a poor risk unless down payments are more substantial, it was brought out at the conference. St. Paul and Minneapolis bankers were hosts recently to Arthur W. Mc Cain, president of the Chase National Bank of New York, who came to the Twin Cities for a visit. He was ac companied by Francis G. Ross, a vice president of Chase National, and Percy J. Ebbott, senior vice president. They were guests at a dinner in the Minneapolis Club sponsored by Joseph F. Ringland, president of the North western National Bank of Minneap olis, and Henry E. Atwood, president of the First National Bank of Minne apolis. G. Sidney Houston, vice president of the First Service Corporation, talked on “Current Business Conditions” at a recent meeting of the Harvard Busi ness School Alumni Club in Minne apolis. Henry E. Atwood, president of the First National Bank of Minneapolis and a member of the federal advisory council of the Federal Reserve Sys tem, addressed the national credit con ference of the American Bankers Asso ciation recently in Chicago. Mr. Atwood told his audience that banks and borrowers in the north cen tral states are following a conserva tive trend. As of last June 30th, he said, loans of member banks in this district were less than 25 per cent of deposits. This indicates a generally sound position in the area and reflects conservatism on the part of both banks and borrowers, he said. Members of the Girls Club of the First National Bank of Minneapolis M IN N E S O T A C O M M E R C IA L 2 5 5 0 P illsbnry A ve. So. N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M E N 'S A S S O C IA T IO N M inneap olis 4 , M innesota 1949 were hostesses recently to 35 under privileged children at the club’s an nual Christmas party in the bank lobby. 65 THE F IR S T N A T I O N A L BANK o f Saint Paul Statement of Condition December 31, 1948 D ir e c t o r s R eso u rces Cash and Due from Banks........................................... $ 10 1 ,884,911.76 U. 1 2 1 ,490,768.41 S. Government Securities............ Other Bonds and Securities.......................................... 10 ,943,518.24 Loans and Discounts...................................................... 90,598,761.10 Accrued Interest and Accounts Receivable................ 966,469.81 Customers’ Acceptance Liability................................. 49,883.20 Bank and Office Buildings............................................ 2 ,300 ,000.00 $328 ,234 ,312.52 L ia b il it ie s Capital Stock................................................................. . $ 6,000,000.00 1 1 ,000,000.00 Surplus.............................................................................. Undivided Profits............. 3 ,023 , 532.03 General Reserve for Contingencies............................... 1 ,276,940.85 Reserve for Interest, Expenses, Taxes, etc. _............. 1 ,279,855.75 Acceptances and Letters of Credit.............................. 49,883.20 Other Liabilities.............................................................. 1 ,359 , 108.48 Julian B. Baird, P r e s id e n t The First National Bank Harold P. Bend Bend-Southall Sleepack Co. Emmett Butler Mining N orris K. Carnes, G e n e r a l M a n a g e r Central Co-Operative Assn. Charles F. Codere, C h a i r m a n , B o a r d o f D ir e c t o r s St. Paul Fire & Marine Insurance Co. Edward B. Cosgrove, P r e s i d e n t Minnesota Valley Canning Co. Harold J. Cummings, P r e s id e n t Minnesota Mutual Life Insurance Co. Albert H. D aggett, P r e s id e n t National Battery Co. E. W. D avis, P r e s id e n t Wood Conversion Co. Charles E. D enney, P r e s id e n t Northern Pacific Railway Co. E. T. Foley Foley Brothers, Inc. Frank J. G avin, P r e s id e n t Great Northern Railway Co. M ilton W. G riggs, C h a i r m a n , B o a r d o f D ir e c to r s Deposits Demand $2 5 8 ,95 6 ,6 1 5 .8 4 Time 4 5 ,288 ,3 7 6 . 3 7 .................................................... 3 0 4 ,2 4 4 ,9 9 2 . 2 1 $328 ,234 ,312.52 Griggs, Cooper & Co. W illiam Hamm, Jr., P r e s id e n t Theo. Hamm Brewing Co. Louis W. Hill, Jr., T r u s te e Great Northern Iron Ore Properties John S. H oll, E x e c u t i v e V i c e P r e s i d e n t Seeger Refrigerator Co. R ichard C. Lilly, C h a i r m a n , B o a r d o f D ir e c to r s R ichard C. L illy, C h a i r m a n , B o a r d o f D ir e c t o r s Philip L. R ay, C h a i r m a n , E x e c u t i v e C o m m i t t e e Julian B. Baird, P r e s id e n t The First National Bank Samuel M airs, C h a i r m a n , B o a r d o f D ir e c t o r s Archer-Daniels Midland Co. Wm. L. M cK night, P r e s id e n t Minnesota Mining & Mfg. Co. John A. Oace I. A. O’Shaughnessy, P r e s id e n t Globe Oil & Refining Co. D epartment of Banks and Bankers Wallace L. Boss, V ic e P r e s id e n t Elmer M. Volkenant, A s s i s t a n t V i c e P r e s i d e n t Lee A. Sauer, A s s i s t a n t V i c e P r e s id e n t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lloyd L. Leider, A s s i s t a n t C a s h ie r Donald W. Buckman, A s s i s t a n t C a s h i e r Donald L. Smith, R e p r e s e n t a ti v e M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n Philip L. R ay, C h a irm a n , E x e c u t i v e C o m m it t e e The First National Bank Paul A. Schilling, P r e s id e n t Waldorf Paper Products Co. Harold O. W ashburn, P r e s id e n t American Hoist & Derrick Co. F. K. W eyerhaeuser, P r e s id e n t Weyerhaeuser Sales Co. N o r t h w e s t e r n Banker, J a n u a r y , 1949 66 Minnesota N e w s Edwin F. Kelley, member of the board of directors of the Marquette National Bank of Minneapolis, has been elected a member of the Minne apolis park board. Mr. Kelley was Minneapolis superintendent of the Western Union Telegraph Company until his recent retirement. gain, and for the 11 months, $2,435,821.000, a 13 per cent gain; South Da kota, for November, $198,311,000, an 18 per cent gain, and for the 11 months, $2,144,494,000, a 14 per cent gain; North Dakota, for November, $213,944,000, a 14 per cent gain, and for the 11 months, $2,133,898,000, a 19 per cent gain; western Wisconsin, for November, $120,453,000, a 7 per cent gain, and for the 11 months, $1,368,243.000, a 10 per cent gain, and upper Michigan, for November, $74,520,000, an 8 per cent gain. western National Bank of Minneap olis, composed of employes of the bank and its affiliates in the metropolitan area, continued a Christmas tradition by presenting carols in the bank lobby. Director of the chorus is Bruce H. Ronald B. Harrison, an assistant vice president of the Marquette Na tional Bank of Minneapolis, is as tal ented at music as he is proficient in his vocation. Mr. Harrison conducted the bank’s Christmas chorus, comprised of em ployes, at a series of three programs of carols in the bank lobby. The Midland National Bank of Min neapolis has completed an extensive remodeling operation which gives new and enlarged quarters for a number of departments including transit and credit. Also an attractive and efficient new cafeteria and lounge rooms for employes have been installed. The improvements include soundproofing and the installation of piped-in music for the employes during certain hours of the day. William Rafferty, home loan contact man for the First National Bank of Minneapolis, attended a recent homebuilding industry meeting in Minne apolis at which the question of wheth er lending institutions could finance all or nearly all of the cost of a home was discussed. Bank debits for the Ninth Federal Reserve District totaled $31,619,013,000 for the first 11 months of 1948, com pared with $28,558,045,000 in 1947, or a gain of 11 per cent, the Federal Reserve Bank of Minneapolis reported recently. Total debits for November in the district were $3,056,312,000 as com pared with $2,854,027,000 in November, 1947, or a gain of 7 per cent. Henry S, Kingman, president of the Farmers & Mechanics Savings Bank of Minneapolis, has been named to the board of trustees of a Boy Scout foun dation which will receive and admin ister all trust funds and bequests to the Boy Scout organization in the Minneapolis area. Minnesota debits f o r November were $2,189,433,000, a 4 per cent gain, and for the 11 months, $22,726,258,000, a 10 per cent gain; Montana, for No vember, $259,651,000, an 18 per cent F ir s t and The EON Club chorus of the North A m e r ic a n Sielaff. The EON Club of the 10 Northwest ern Banks sponsors the chorus and other activities, such as book clubs, bowling and softball teams. It has more than 1,250 members. EON stands for Employes of Northwestern. Otto Bremer, chairman of the board of the American National Bank of St. Paul, has announced an increase of $500,000 to the surplus account giving the bank a total surplus of $2,500,000. The half-million was the amount of the increase from earnings. Capital is N a t io n a l B a n k OF DULUTH, MINNESOTA STATEMENT OF CONDITION. DECEMBER 31, 1948 RESOU RCES L IA B IL IT IE S Cash on Hand and Due from Banks............................ $18,581,991.61 United States Government Securities......................... 35,379,581.18 2,468,067.00 Municipal Securities .................................................... Other Bonds and Securities........................................... 3,781,058.77 Loans and Discounts...................................................... 17,090,971.81 Federal Reserve Bank Stock......................................... 120,000.00 Banking House ................................................................ 1.00 American Exchange Property....................................... 1.00 Interest Earned But Not C o lle cte d .......................... 212,965.51 Overdrafts ........................................................................ 777.68 Capital Stock .......................................$ 2,000,000.00 Surplus .................................................. 2,000,000.00 Undivided P r o fits ................................. 1,220,364.69 Reserves ................................................. 707,523.70 Total Capital Accounts...................................$ 5,927,888.39 Reserve for Interest, Taxes and Expenses................. 277,051.11 Discount Not Earned...................................................... 98,078.30 Deposits: Demand ............................................$48,897,132.36 Time .............................................. 21,115,826.49 U. S. Government......................... 1,319,438.91 Total D ep osits................................................... 71,332,397.76 $77,635,415.56 OFFICERS B AN K IN G D E P A R T M E N T W ILLIS D. WYARD, President EMMONS W. COLLINS___ Vice President J. DANIEL M AHONEY___ Vice President ROBERT W. HOTCHKISS. .Vice President HUBERT U. MOORE..........Vice President SYLVESTER T. STRA IN ................ Cashier W ILLIAM K. ALFORD. . .Asst. Vice Pres. WILLARD F. A R IO ........Asst. Vice Pres. HARRY W. GOOCH................... Asst. Cash. W ALTER L. FREDRICKSON. .Asst. Cash. EARLE J. ANDREE................. Asst. Cash. WILLIS A. PUTMAN, Vice President Banking Department EDWARD L. PALMER, Vice President Trust Department JOHN L. E V A N S............................... Auditor F. RUDOLPH JACOBSON. . .Asst. Auditor JOSEPH C. JORGENSEN........Chief Clerk Member Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 $77,635,415.56 MORTGAGE AND INSTALLMENT LOAN DEPARTMENT L. REX H ATTEN ................. Vice President W ALTER L. GRANDY. . .Asst. Vice Pres. TRUST DEPARTMENT CHESTER D. SEFTENBERG. . . Vice Pres. VERNON K. FALGREN........Trust Officer ARTHUR M. OVENTILE.Asst. Tr. Officer MORRIS S. KNUDSEN. . .Asst. Tr. Officer KENNETH W. DENNIS. .Asst. Tr. Officer Minnesota News $2,500,000 for a total capital structure now of $5,000,000 for American Na tional. Officers of First National Bank of Minneapolis were hosts last month at a dinner at the Minneapolis Club hon oring the senior vice president of the bank and two vice presidents of its affiliated First Minneapolis Company, all of whom retired from active duty December 31. Honored guests were J. G. Byam, vice president of the hank since 1920; Orrin M. Corwin, executive vice pres ident, and Arthur P. Morris, vice pres ident and treasurer of First Minne apolis Company. The Stock Yards National Bank of South St. Paul has completed some interior improvements, the principal one of which is increasing its vault space both for the bank and for its customers. It will not only increase the vault space, but will render it much more efficient, according to President K. Lloyd Smith. of the board of directors of the Federal Home Loan Bank of Des Moines, Iowa, the latter institution serving savings and loan association in the upper middlewest. Mr. Dahlen’s term will run until December 31, 1950. Changing Name A proposal to convert the St. Cloud State Bank to a national bank, along with an increase of $50,000 in the bank’s capital, was to have been pre sented to stockholders at the annual meeting earlier this month. President D. J. Fouquette said the plan, if ap Moves to New Ulm George A. Volz recently took over his new duties as assistant cashier of the Farmers and Merchants State Bank at New Ulm, Minnesota. He replaces Carl J. Muehring, who re signed to move to Duluth. Elect County Officers Harold Ness, president of the First State Bank at Carlos, Minnesota, was elected president of the Douglas Coun ty Bankers Association at the associ ation’s annual meeting at Alexandria recently. Elected association vice president was W. H. Beery, assistant cashier of the Alexandria State Bank, while O. P. Rakness, cashier at the First State Bank at Carlos, was elected seccretary-treasurer. On Home Loan Board Stanton R. Dahlen, secretary-man ager of the First Federal Savings and Loan Association of Thief River Falls, Minnesota, has been elected a member https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis proved, would become effective within a short time and the bank would be come a member of the Federal Re serve. Increasing capital from $50,000 to $100,000 would be made possible by declaration of a 50 per cent stock dividend from the $60,000 surplus and offering stockholders rights to sub scribe to 250 new shares of common stock. The St. Cloud State Bank is now in its 32nd year. Other officers are Irene Wilson and Donald N. Parent, vice presidents; August Inderrieden, cash ier, and Myrtle Leyk and Robert J. Welle, assistant cashiers. THE NORTHERN TRUST COMPANY CHICAGO Clarence A. Maley, vice president and trust officer of the American Na tional Bank of St. Paul, has been named king of the 1949 St. Paul Winter Carnival which will run from Febru ary 11 through 20. He will officially take over the Carnival sceptre in an elaborate coronation pageant Febru ary 11. A native St. Paulite, Mr. Maley served as president of the St. Paul Winter Carnival Association from 1942 to 1946. He has been with American National since 1909. 67 Statement o f Condition, December 31, 1948 KESOURCES Loans and D iscou n ts.......................................................... $ 91,571,352.74 U. S. G overnm ent Securities........................... 300,780,374.33 Other Bonds and Securities............................. 109,935,016.15 Federal Reserve Bank Stock............................. 450,000.00 Bank P rem ises.......................................................... 1,400,000.00 C u stom ers’ L iability, Account Letters o f Credit and Acceptances................................................. 638,718.91 O ther R esources...................................................... 167.865.00 Cash and Due from B an k s................................ 186.589-214.48 TOTAL........................................................................... #691,532.541.61 LIABILITIES Capital S tock.......................................................................... $ S u rp lu s........................................................................ 3,000,000.00 12,000.000.00 Undivided Profits.................................................... 6,158,319.52 Reserve for Taxes, Interest, etc....................... 13,143,131.79 Dividend Payable January 3 ,1 9 4 9 ................. 135.000.00 Letters o f Credit and Acceptances O u tstan d in g . . Other Liabilities...................................................... 645,178.66 188,637.87 D eposits: D em an d ................................................$442,990,662.77 T i m e ...................................................... 160.753,559.46 U. S. G ov ern m en t.......................... 52,518,051.54 656,262,273.77 T O T A I............................................................................#691.532.541.61 U n ited S ta tes G o v e r n m e n t secu rities ca rried in th e a b o v e s ta te m e n t at $ 5 8 ,3 0 0 ,2 2 6 .5 7 are p le d g e d t o secu re p u b lic and o th e r m on ies , as re q u ire d b y la w : and U n ite d S ta tes G o v e r n m e n t a n d o th e r secu rities ca rr ie d at $ 5 8 1 ,9 5 5 .4 8 are d e p o s ite d w ith th e S ta te A u th o r itie s u n d er the T r u s t A c t . M em ber Federal De/)osit Insurance Corporation N o r t h w e s t e r n B a n k e r , J a n u a r y f 1949 68 Minnesota News Dividend investors Mutual The board of directors of Manufac turers Trust Company has declared the regular quarterly dividend on the bank’s capital stock in the amount of 60 cents per share, payable on Janu ary 3, 1949, to stockholders of record on December 22, 1948. The board also voted to amend the by-laws of the Trust Company so that in the future the annual meeting of stockholders will be held on the third Wednesday in January instead of the second Wednesday, commencing with the forthcoming meeting of stockhold ers which will be held on Wednesday, January 19, 1949. The directors of Investors Mutual, Inc., Minneapolis, open-end investment company, have declared a quarterly dividend of 12 cents a share, it was announced by E. E. Crabb, president and chairman of the board. The cur rent dividend, derived exclusively from interest and dividend income, is payable January 21, 1949, to share holders of record as of December 31, 1948. As a matter of company policy, dividend distributions from profits on the sale of portfolio securities are made only in the final quarter of the fiscal year. Net assets of Investors Mutual, Inc., as of December 9, 1948, were $126,163,000, with shares currently owned by more than 67,000 shareholders. In vestors Syndicate, Minneapolis, is the principal underwriter and investment manager of the fund. Heads Branch Irving Trust Company announces that Charles G. Gambrell, a vice presi dent with broad experience in the company, has taken charge of its branch office in the New York Central Building, 46th Street and Park Ave nue, New York. Assistant Treasurer Oke BANK tL YARDS STATEMENT OF CONDITION At the close oi business December 31, 1948 R E S O U R C E S Loans and Discounts................................................................................................$ 4,271,104.51 United States Bonds and Notes............................................................................ 10,765,643.01 Municipal Bonds ...................................................................................................... 661,102.87 Other Bonds and Securities.................................................................................. 586,157.44 Federal Reserve Bank Stock.................................................................................. 24,000.00 Interest Earned, Not Collected.............................................................................. 78,334.67 Cash on Hand and Due from Banks................................................................... 11,246,904.89 Harry A. Lombard, formerly gen eral manager of the Currier Lumber Company in Detroit, has been named assistant treasurer of Burroughs Add ing Machine Company, according to an announcement made by John S. Coleman, president. Mr. Lombard first joined the Bur roughs organization in 1927 after eight years’ experience with the Peninsular State Bank in Detroit. After serving on the sales staff of Burroughs’ De troit branch, he was transferred to the home office bank division where he handled supervisory duties for eighteen years. $27,633,247.39 L I A B I L I T I E S Capital Stock ................................................................................... $400,000.00 Surplus .................................. 400,000.00 Undivided Profits .............................................................................. 156,767.17 Reserve for Contingencies............................................................... 142,979.62 H r r r ir r s A ir a n i Total Capital Accounts.............................................................................. $ 1,099,746.79 Reserve for Interest, Taxes and Expenses......................................................... 64,813.19 Interest Collected, Not Earned.............................................................................. 25,179.92 Deposits ..................................................................................................................... 26,443,507.49 $27,633,247.39 CARL L. FR ED RICKSEN President W IL L IA M C. SCHENK Asst. V. Pres, and Cashier M ARK A. W IL S O N V ice President JOHN S. H A V E R Asst. Cashier K IN L E Y W. SM ITH Asst. Cashier CLIFFO R D L. ADAM S JAMES L. SM ITH S T A N L E Y W . EVANS Asst. V ice President Asst. Cashier and Auditor Field Representative L iv e S t o c k National Bank N o r t h w e s t e r n Banke r, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J. M ilto n F re e la n d , vice president of The City National Bank & Trust Company of Kansas City, Missouri (left), receiving from R a lp h E. M e y e rs, treasurer of the Kansas City Chapter of the American Insti tute of Architects, an award recog nizing the bank’s new quarters at Tenth Street and Grand Avenue as the outstanding example of commer cial building in the Kansas City area for 1947. Mr. Freeland was chairman of the building committee for the bank and played an impor tant part in its design. 69 bank and Miss AVobig teller. Dean Trippler was one of the original in corporators of the bank in 1921 and has been a director continuously since. He became president of the bank in 1939. Francis Trippler, also a director, became assistant cashier in 1942. Mr. Palmer became cashier and active manager of the bank in 1935. New officers of the bank will be elected soon. C. of C. President ings. He gave a report on the Fed eral Forum held at the Nicollet Hotel in Minneapolis. Mr. Anderson is as sistant cashier at the Roberts County National Bank. Those attending included: J. C. Hedman and Stanley Berg of Stockholm; A. O. Monson, Vernell Benson, H. A. Stenson of New Effing ton; Arlo Allen, W. T. Raebel and Dan Pollock of the First National Bank in Milbank; E. W. Boehmke and J. M. Aasland of Wilmot; L. E. Minerman of Revillo; M. W. Wise, Joe VandeVoat, Earl Nixon, Fred Phillippie of the Dakota State Bank in Milbank; Ralph Anderson, A. AV. Powell and F. H. Kouba of Sisseton: L. F. AVaddington and Orlando Risdal of the Rosholt Community Bank. C. H. Lockhart, president of the First Citizens National Bank, Watertown, South Dakota, has succeeded Fred E. Bichler as president of the local Chamber of Commerce. Conditions Very Good Christmas Party Elected to Board A report received early last month from F. O. Palmer, cashier of the Se curity State Bank of Canova, South Dakota, reads as follows: “Conditions here are very good. Farmers have produced the largest corn crop ever raised in this part of the state. A large portion of the crop has been sealed. Our loans, outside of the Commodity Credit Loans on corn and grain, have been increasing right along. Merchants report a brisk trade. So far the elevators here have been getting cars enough to handle all of the grain brought in, which helps con siderably.” In order to show their appreciation of the growing business of the bank and good will of the public, the officers at the Farmers State Bank. Estelline, South Dakota, invited everyone to a Christmas party last month. Visitors were given an opportunity to view not only the new interior fin ish, but were shown the numerous machines which are used in the busi ness. Another interesting feature of the afternoon was the showing of the film “ Back of Every Promise,” which is a dramatized story of commercial bank ing, showing how a bank operates, and the services it performs for in dividuals, industries and the nation as a whole. DeWitt Malvin, ■ Belle Fourche, South Dakota, was elected to the board of directors of the First National Bank of the Black Hills at a recent meeting in Rapid City of directors and managers. Mr. Malvin, vice president of the Belle Fourche branch and connected with the bank for more than 20 years, succeeds the late G. H. McGarraugh, Sturgis, who recently died. Directors and managers in Rapid City for the meeting and dinner were Guy N. Bjorge, Chambers and Ken neth Keller, and John Ryan, all of Lead; H. S. Black, Dr. F. S. Howe, Carlton Gorder, A. A. and Allen Co burn, Deadwood; Fred P. Hampton and George W. Milne, Sturgis; DeWitt Malvin and Vernon Black, Belle Fourche: Ralph Mattson, Hot Springs; Walter Dickey, Spearfish; and Oscar Fogelbeg, Newell. At Vermillion Branch Appointment of Henry T. Thompson as assistant manager of the Vermillion branch of the National Bank of South Dakota has been announced by T. S. Harkison, president. He fills a va cancy created by the recent resigna tion of Orley K. Ripplinger, who has accepted a position as cashier of the American National Bank of Little Falls, Minnesota. A native of Sinai, South Dakota, Mr. Thompson began his banking career there in 1936 with the First State Bank. He was in the U. S. Navy from 1942 to 1945, as a radio operator. For the past two and a half years he has been assistant cashier of the First State Bank of White Bear Lake, Min nesota. Meeting in Rosholt Representatives f r o m banks at Stockholm, Milbank, Wilmot, New Effington and Sisseton, South Dakota, were guests last month of the Ros holt Community Bank when the Whet stone Valley Clearing Association met in Rosholt. Ralph Anderson, president of the association, presided over the meet Buy Canova Bank Dean C. Trippler, Mrs. Trippler and Francis Trippler have sold their in terest in the Security State Bank of Canova, South Dakota, to F. O. Palmer, Ernest Wobig and Gertrude Wobig. Mr. Palmer has been cashier of the President Resigns L. T. Jarmuth has announced his retirement as president of the First National Bank of Miller, South Da kota. Mr. Jarmuth has been in the bank ing business in the county 42 years and an officer of the bank since 1930, coming in the capacity of vice presi dent. He succeeded A. P>. Cahalan as president in 1947. Lloyd A\reaver is to be the new pres ident and Louis Steehmann will be vice president. Abeel Appointed Governor George T. Mickelson has reappointed Verne W. Abeel, Pierre, THE NATIONAL BANK OF SOUTH DAKOTA H uron Member F ederal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sioux Falls V erm illion Affiliated with F IR S T B A N K STO C K CO RPO RATIO N N o r t h w e s t e r n Banker, J a n u a r y , 1949 /O South Dakota News South Dakota, to be.state superintend ent of banks. The appointment is subject to confirmation of the state senate. Mr. Abeel’s new term began as of January 3, 1949, and ends January 3, 1953. He first was appointed January 3, 1945. S io u x F a lls N e w s ~r OM S. HARKISON, president of I the National Bank of South Dakota and chief rabban of El Riad Shrine, headed a delegation from the local Shrine to a recent ceremonial of El Zagel Temple at Fargo, North Dakota. Dr. S. A. Donahoe, a director of the National Bank of South Dakota, ex hibited six head of Shorthorns in the breeding cattle classes of the Interna tional Livestock Exposition in Chi cago. O. A. Bray, assistant cashier of the Northwest Security National Bank, was re-elected secretary of Sioux Falls Chapter No. 2, Royal Arch Masons, and re-elected treasurer of Minnehaha Lodge No. 5, A.F.&A.M. C. A. Christopherson, Sr., chairman of the board of the Union Savings Bank, was elected treasurer of all Scottish Rite bodies here. N O R T H W E S T SE C U R IT Y NATIO NAL BANK of S i o u x Fa l l s , S o u t h D a k o t a South Dakota'’s Leading Bank Decem ber 31, 1948 RESOURCES Cash on Hand, in Federal Reserve Bank, and Due from Banks and Bankers............................$11,411,395.10 U. S. Government Obligations............................... 19,616,261.79 State and Municipal Bonds.................................... 798,122.40 Other Bonds and Securities.................................. 1,269,679.08 Includes Banking Houses at Sioux Falls, Brookings, Chamberlain, Dell Rapids, Gregory, Huron and Madison, alí clear of encumbrance. Interest Earned but Not Collected................................................. Customers’ Liability on Letters of Credit...................................... 164,351.65 36,000.00 TOTAL......................................................................................$45,773,931.30 LIABILITIES Capital Stock—Common ............................... .**....$ 500,000.00 Surplus ................................................................... 1,000,000.00 Undivided Profits and General Reserves.............. 392,195.52 $ 1,892,195.52 134,254.54 68,590.36 43,642,890.88 36,000.00 BRANCHES AT BROOKINGS, CHAMBERLAIN, DELL RAPIDS, A ffiliated w ith N orth w est B ancorporation M em b er F ed era l D e p o sit Insu rance C orporation N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Christmas carols welcomed the holi day season at American National Bank and Trust Company, Chicago, when the bank’s chorus of 30 voices presented a half-hour Christmas con cert at one o’clock each afternoon from a balcony overlooking the main banking floor. The chorus, which had been in re hearsal since last October, serenaded the bank’s 500 employes at a “family reception” held on the main banking floor. The First National Bank of Chicago was host last month to 750 visiting bankers attending the A.B.A. Credit Conference at buffet luncheons served in the newly-remodeled quarters of the trust department of the bank. Dividend Directors of the First National Bank in St. Louis have declared a dividend of $1.10 per share, 60 cents of which was an extra dividend payable Decem ber 22nd to stockholders of record December 15th, and 50 cents payable February 28, 1949, to stockholders of record February 18th. The directors also voted additional compensation for employes in service prior to January 1, 1948, equivalent to one-half month’s salary on earnings up to $4,000. Brinkman Retires TOTAL......................................................................................$45,773,931.30 GREGORY, HURON, MADISON H. O. Engen, cashier and vice presi dent of the Union Savings Bank, ac cepted contributions for the Christmas Good Will Train of CROP (Christian Rural Overseas Program) assembled here for conveyance to suffering peo ple in war-torn lands overseas. Entertains $33,095,458.37 Stock in Federal Reserve Bank in Minneapolis........................... 45,000.00 Overdrafts ....................................................................................... 2,707.90 Loans and Discounts........................................................................ 11,008,600.30 Commodity Credit Corp., Grain Loans......................................... 1,189,313.08 Banking Houses .............................................................................. 232,500.00 Letters of Credit.............................................................................. William C. Duffy, president of the Union Savings Bank, issued a call for the 1949 meeting of the Sioux Council, Boy Scouts of America, of which he is president. The annual gathering of Scouters is usually held here in January. Carols STA TEM EN T OF CONDITION Reserve for Interest, Taxes, and Other Expenses........................ Interest Collected but Not Earned................................................. Deposits: Time ................................................................. $ 7,312,130.84 Demand ............................................................ 35,777,759.98 U. S. War Loan............................................... 553,000.06 Tom S. Harkison, president of the National Bank of South Dakota, was re-elected treasurer of the Kiwanis Club for 1949. Harry A. Brinkman, vice president of the Harris Trust and Savings Bank, Chicago, Illinois, retired at the yearend after 42 years in the Harris organ ization. Mr. Brinkman began his banking career in 1906 with N. W. Harris & Company, which later was incorporated as the Harris Trust and Savings Bank in 1907. He started as a statement clerk and bookkeeper. He was elected assistant cashier in 1912, cashier in 1927 and vice presi dent in 1934. 71 \ o i ‘( h D a k o ta XEW S Kindred State Bank, throughout those fifty years, has been a power in the community, and through straight forward dealings has gained a confi dence among its patrons that is en joyed by each and every one of them. Thirty-five Years ARNE A. GREGOR President Leeds c. c. w a t t a m Secretary Fargo To Serve Farmers Named President Gilbert T. Urban, widely known in Stutsman county farming circles and long active in financial work in that section of North Dakota, has joined the staff of The National Bank of Jamestown as a special farm repre sentative. In announcing the appointment, F. L. Durand, president of the bank, stated that Mr. Urban in his new posi tion will be available to offer farmers in this vicinity specialized counsel and help in banking matters of all types. A change was made recently in the officers of the First State Bank of Hope, North Dakota, and M. G. Peder son was elected president of the board of directors, holding that position as well as cashier. He has purchased the stock of Henry Northridge, for mer president. Zehringer Retires Charles H. Zehringer, who went to Minot, North Dakota, in 1905 on a month’s leave of absence from an office job in Minneapolis, and stayed on to build a career in banking and insurance in the Union National Bank of Minot, retired January 1st. On April 15, 1916, he was appointed cashier of the bank, and V. R. Tomp kins, now proprietor of the Tompkins Coal Company in Minot, became as sistant cashier. The two ran the bank during that period of World War I when Major E. S. Person, bank presi dent, served in the armed forces. January 1, 1920, Mr. Zehringer was named vice president of the Union National and has held that office con tinuously, although since June, 1932, when he became manager of the Union Insurance Agency, his attention has been more occupied with insur ance than with loans and discounts. To New England Henry W. Ness is now associated with the Citizens State Bank of New England, South Dakota. He replaces A. O. Lona, who resigned and who will live in Fergus Falls, Minnesota. Mr. Ness came to North Dakota originally as a banker at Gascoyne and then moved to Reeder and worked in a bank there. He then came to New England where he was secretarytreasurer of the Federal Farm Loan set-up for 12 years, being transferred to the same job in Minnesota about a year ago. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Changes at Finley The Citizens State Bank of Finley, North Dakota, announces the follow ing changes in its personnel, due to the resignation of Ole Lovik, cashier. The board appointed Leon A. Sayer, Jr., as vice president; H. C. Solberg, cashier, and Anna Marie Faltinson, assistant cashier. L. A. Sayer will continue to head the institution as president. Mr. Lovik had served the bank as cashier since August, 1945. Winter Conference The North Dakota Bankers Associa tion last month held a one-day winter conference in Fargo. It was devoted mainly to study of new inheritance and income tax laws. President Arne Gregor of Leeds presided. The meeting closed with a banquet in Town Hall of the Gardner Hotel, with Col. Ernest Miller, commander of the Brainerd, Minnesota, tank bat talion on Bataan, giving the principal talk. The North Dakota state banks ex change committee, which convened after the business session of the con ference, heard Chairman Hans Fischer of Washburn report, and decided to ask the state legislature for changes in the Bank of North Dakota law. The non-par banks, he said, would ask that the law be changed so that they would have to redeem at par only those checks made in payment for obligations to the state, its agen cies and other governmental divisions. About 200 persons attended the meeting, including bankers and their wives. Golden Anniversary Last month the Kindred State Bank, Kindred, North Dakota, reached its fiftieth year of activity. Thirty-five years a banker in Garri son, North Dakota, is the record at tained last month by Hans A. Fischer, cashier of the Farmers Security Bank. He is also president of the Farmers Security Bank at Washburn. Mr. Fischer is a past president of the North Dakota Bankers Associa tion, and is chairman for McLean county’s bond buying effort. In 1913, about two years after his arrival in Washburn, he took a job with the First National Bank. He resigned in 1919 to become the organ izer of the Farmers Security Bank and its cashier. Capital Increased Edward E. Brown, chairman of the board of The First National Bank of Chicago, announced that the share holders of the bank approved the in crease in the capital stock of the bank from $60,000,000 to $75,000,000, the $15.000,000 increase being a transfer from the bank’s present surplus. The new stock was distributed as a stock divi dend to shareholders of record at the close of business December 15, 1948. Council Member James M. Kemper, chairman, Com merce Trust Company, Kansas City, has been reappointed a member of the Federal Advisory Council of the board of governors of the Federal Reserve Bank. Nineteen hundred forty-nine will be Mr. Kemper’s third consecu tive term on the Council. Promotions Frank L. King, president, California Bank, Los Angeles, has announced the following promotions made at the De cember meeting of the board of direc tors: To vice president, C. C. Pearson; to assistant vice presidents, H. V. Grice, H. C. House, F. S. Huber, Rudolph Ostengaard, Fred G. Tanner, Jr.; to manager, W. H. Oliver; to assistant managers, B. P. Mitchell, J. W. Mun son, W. H. Rogholt, R. F. Townley. Assistant Cashier The First National Bank in St. Louis has announced the election of Clar ence E. Sommerich as an assistant cashier, in the exchange department. He has served in various departments of the bank for thirty-four years. N o r t h w e s t e r n Banker, J a n u a r y , 1949 N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W 1949 || J A N U A R Y 'OUNü\ \NK1NG WVICEì charge of their respective depart ments. The four new officers and the de partments they supervise are : Otto F. Schlaebitz, trust department, former ly secretary and trust officer; Mathias G. Volz, insurance department; Evert M. Hunt, investment department, and Blanchard R. Anderson, real estate department. V e b ra s k ii NEW S J. R. KENNER President Hebron Sherman A. Walker Sherman A. Walker, 83, one of the organizers of the Farmers State Bank at Douglas, Nebraska, in 1919, and for the past 27 years its president, died last month. Mr. Walker’s death was a tragic one and a shock to all of his many friends and associates. He was burned to death in his farm home near Douglas when the house caught fire and burned. Mr. Walker was unmarried and had lived alone on his farm most of the past 52 years. Until the time of his death he had been in good health. Burt County Meeting The bankers of Burt county enter tained the members of the SarpyDouglas-Burt and Washington County Association at Oakland last month. There were 60 guests present. Emil E. Placek, president of the First Na tional Bank of Wahoo, was the speak er. He gave an interesting talk on his recent trip around the world and especially on conditions in central Europe. The banquet was held at the Oak land Golf Club, with President C. C. Neumann and Cashier Chase Neu mann of the Farmers & Merchants National Bank as hosts. H. C. Larson, cashier of the Citizens State Bank of Decatur, vice president of the four-county bankers’ organiza tion, presided at the business meeting. Adolph Pivonka Adolph Pivonka, 79, president of the Bank of Swanton, Nebraska, for 30 years, died in Beatrice last month and burial services were held in Wilber. He is survived by his wife, Mary; one son, Adolph F., Swanton; a daughter, Mrs. William Fit], Fremont; two sis ters, four half sisters, four grandchil dren and two great grandchildren. D id you know CARL G. SW A N SO N Secretary Omaha Heads Falls City C. of C George Froehlich, executive vice president of the First National Bank, Falls City, Nebraska, is the new presi dent of the Chamber of Commerce. He succeeds Paul Chaney. Bayard T. Clark is vice president and George S. Lyon, treasurer. Open Investment Office Alvin G. Nelson and Kenneth L. Peters have organized the General Loan and Investment Corporation in South Sioux City, Nebraska, and have received a license to operate from the Nebraska Department of Banking. Mr. Nelson is president and Mr. Peters is vice president and secretary. Capital of the firm, which will handle invest ments and loans, is $100,000. Mr. Nelson and Mr. Peters formerly were associated with the Nebraska State Bank in South Sioux City as vice president and cashier respec tively. Johnson Bank Closed Liquidation of the First State Bank, Johnson, was reported by the Nebras ka Banking Department last month. The institution was closed, it was said, because James P. Kelley, cashier and executive officer, wanted to retire. Increase Surplus An increase in the surplus account to $50,000 has recently been authorized by the board of directors of the Broken Bow State Bank, Broken Bow, Ne braska, The basic capital of the bank is now $100,000. Elect Four as Officers George W. Holmes, chairman of the board of the First Trust Company, Lincoln, has announced the election by the board of directors of four 20year employes as vice presidents in th a t th is com p an y h as specialized in B a n k In su ra n ce since 1 9 19— th a t it h as the view on B a n k In su ran ce p ro b lem s? C onsult us fr e e ly a t a n y tim e. F IR S T N A T IO N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK B U IL D IN G Reappoint Directors inside C H IC A G O Fred S. Wallace, Gibbon farmer, has been reappointed a director of the Omaha branch of the Federal Reserve Bank of Kansas City, L. H. Erhart, vice president of the Omaha branch, has announced. Mr. Erhart said Mr. Wallace’s term would be for two years, starting Jan uary 1. 1949. He also announced that Fred W. Marble, president of the Stock Growers National Bank, Chey enne, Wyoming, had been reappointed for a two-year term as a director of the Omaha branch. Buys Missouri Bank Harold F. James of Omaha, Nebras ka, has purchased the controlling stock in The Home Bank of Savannah, Missouri, from J. D. McCaskey, who purchased the bank in 1938 and was active president of the bank until about a year ago when he became vice president of the First National Bank of St. Joseph. Mr. James will succeed Mr. McCas key as president and take over the active management of the bank. D. F. Turner will continue as vice president and Benton Van Horn as cashier. The year end statement of the bank shows $50,000 capital, $75,000 surplus, $46,761 reserves and $3,503,858 in deposits. Mr. James was born and reared in northwest Missouri where he got his early banking experience. He was as sociated with the Gillam-Jackson Loan and Trust Company of Maryville, Mis souri, from 1918 to 1920 and then en tered the employ of the Omaha Na tional Bank where he continued until 1933 when he became vice president of the Federal Land Bank of Omaha. In 1937 he went to Washington, D. C., to become vice president and treasurer of the Federal Farm Mortgage Cor poration, where he continued until 1948. Both parties in the sale were repre sented by the Bankers Service Com pany of Des Moines, Iowa. Scarborough & Company Insurance Counselors 3, IL L IN O IS STATE to Banks 4325 N o r t h w e s t e r n Banker, J a n u a r y , 1949 74 Nebraska N e ws Lincoln Clearings Climb Lincoln bank clearings showed an increase of almost $25,000,000 in 1948. The Lincoln clearing house re ported that 1948 clearings totaled $355,942,020. compared to $330,987,305 in 1947. December clearings totaled $30,732,481. Buys Davey Bank Sale of the majority interest in the Farmers State Bank at Davey, Ne braska, to G. A. Frampton of Lincoln has been announced by John M. Han sen, cashier of the bank. Mr. Hansen is selling for reasons of health. Mr. Frampton, a native Nebraskan, who began in the banking business in Lancaster county, was for five years in the business in Oklahoma and served six years as president of the Iowa State Bank in Des Moines. He sold his interest in it in 1946 and returned to Lincoln. Mrs. Hannah Abbott Funeral services were held in Hyannis, Nebraska, last month for Mrs. Hannah Abbott, mother of Chris J. Abbott and LeRoy Abbott, prominent Nebraska cattlemen and bankers of Hyannis and Alliance. A pioneer in the Hyannis area. Mrs. O n ih s Abbott came to Hyannis in 1890 with her husband, the late Arthur Abbott, one of western Nebraska’s early day cattlemen. He began the business now operated by his sons. Joins Walters Company The Charles E. Walters Company, bank stock sales organization of Oma ha. Nebraska, announces the associa- tR n c k i) e i u g A Qbov.& JtPw itivsih cton din q . . . rose the great and ever growing Kansas LLL'u /. City- created by a vast and overwhelming tide of commerce that helped to build our mighty Western empire. For over a half century the Inter-State has shared the life and growth of that city . . . a time-honored relationship based on a sincere desire and the proved ability to serve our depositors and correspondents faithfully and well. Condensed Statement THE INTER-STATE NATIONAL BANK Kansas City, Missouri At the Close of Business December 31, 1948 RESOURCES Cash and Due from Banks______________________ $26,628,862.25 U. S. Government Securities____________________ 10,307,236.30 Other Securities _______________________________ 6,007,172.24 $42,943,270.79 Loans and Discounts__________________________________________ 26,089,125.35 Stock in Federal Reserve Bank________________________________ 75,000.00 $69,107,396.14 LIABILITIES Capital ________________________________________ $ 1,250,000.00 Surplus _______________________________________ 1,250,000.00 Undivided Profits _____________________________ 1,324,408.84 Reserve for Contingencies_______________________ 400,000.00 $ 4,224,408.84 Reserve for Taxes, etc_______________________________________ 123,000.00 Deposits ____________________________________________________ 64,759,987.30 $69,107,396.14 the In te r -S tate National Ba n k L I VES TOC K EX C HA NG E BLOG. ^ IETH. AND GENESEE STS. Member Federal Deposit Insurance Corporation PAUL L. KE LLE R To Travel M iddlewest tion of Paul L. Keller with the firm as vice president. Mr. Keller has extensive banking experience, having been engaged in the banking and investment business in Nebraska and Colorado for many years. He has lived in Omaha for a number of years, during which time he has had intimate contact with banks and enjoys an extensive acquaintanceship with bankers. He will be active in making personal contacts throughout the middle west, which territory Wal ters System has served for more than 44 years in negotiating the sale of banks. P ir s t National Omaha ¿ B a n k oí Oldest Motional Bank From Omaha West Member Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 75 Nebraska N e w s Each of the three Omaha firms took $150,000 of the debentures. Fred W. Thomas, president of the First National Bank of Omaha, ap peared to be certain for appointment as a Democratic member of the board i()HN F. MERRIAM, executive vice J president and a director of the Northern Natural Gas Company, with headquarters in Omaha, has been elected to the board of directors of the United States National Bank of Omaha. Mr. Merriam fills the vacancy caused by the resignation of Roy Page, former executive manager of the Oma ha Public Power District, who has retired and will make his home at Carmel, California. Ray R. Ridge, senior vice president of the Omaha National Bank and past president of the Omaha Chamber of Commerce, has been appointed to the caused by the recent death of Will R. Johnson, vice president of North western Bell Telephone Company, and a director of the Stock Yards National Bank. Mr. Ridge said that he was “highly honored” by the appointment. His term will expire June 30, 1949. Halsey, Stuart & Company, Chicago investment bankers, were high bid ders for the $60,000,000 bond issue of the Northwestern B e l l Telephone Company, President J. Russell Hopley announced at Omaha. The firm, representing a group of Two carbons 118 purchasers, offered 100.68999 for Watermarked Bond the 31-year 3!4 per cent debentures Printed Covers which were to be offered to the pub- stapled from Back lie at 101% to yield approximately 3.18 per cent to maturity. Three Omaha firms, John Douglas & Company, Wachoh-Bender Corporation and the National Company, par Quality Duplicate Deposit Books to match y ° ur other high quality printed iorms. / ) ^ ticipated in the underwriting. An N e b r a s k a S a l e s b o o k other participating firm, Stern Broth- 21st te 22nd ( .n m s n S b r b M e. o. Box S48 ers of Kansas City, has an Omaha on y 0 0 Lincoln 1, Nebraska STATEMENT OF CONDITION The CONTINENTAL NATIONAL BAN! OF LINCOLN LINCOLN, NEBRASKA At the Close oi Business December 31, 1948 On RAY R. RIDGE Board of Regents at the University of Omaha board of regents of the University of Omaha. The Omaha Board of Education se lected him, eight to one, over Roman L. Hruska, chairman of the Douglas County Board, to fill the vacancy R E S O U R C E S Cash and Due from Banks......................................................................... $ 9,136,132.50 U. S. Government Bonds and Certificates............................................ 14,471,969.69 Municipal Bonds and Warrants............................................................... 534,901.62 Other Bonds ................................................................................................ 527,296.22 Loans and Discounts.................................................................................... 5,984,256.10 Stock in Federal Reserve Bank................................................................. 36,000.00 Furniture and Fixtures................................................................................ 41,357.96 Interest Earned But Not Collected........................................................... 99,791.91 Overdrafts ................................................ ' .................................................. 3,002.32 Total..........................................................................................................$30,834,708.32 BANK EMPLOYEES PLACED 44 Yea rs S a t is fa c t o r y Service LI ABI LI TI ES Capital Stock ....................... ...................... .. ............................................ $ 600,000.00 Surplus ........................................................................................................... 600,000.00 Undivided Profits and Reserves............................................................... 254,040.08 Interest Collected But Not Earned......................................................... 34,414.47 Reserved for Taxes, Interest and Expenses.......................................... 16,160.65 Deposits ...................................... 29,330,093.12 Total.................................................................................... $30,834,708.32 CHARLES E. WALTERS CO. Member of Federal Deposit Insurance Corporation BANKS Bought and Sold Confidentially and with becoming dignity OMAH A, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NEBRASKA N o r t h w e s t e r n Banker, J a n u a r y , 1949 76 Nebraska News N o r t h w e s t e r n i t e l i it o n d s S i f / n e d htj T r u s t e e Casper Y. Offiitt, vice president and trust officer of The United States National Bank of Omaha, is shown seated at a table at The Signature Company in New York City, signing twenty-four bonds at a time as part of an issue of $60,000,000 of Northwestern Bell Telephone Company’s 3% per cent debentures for which The United States National Bank is the corporate trustee. Observing Mr. Offutt are, seated, Ellsworth Moser, executive vice president, The United States National Bank of Omaha, and, standing, left to right, Richard C. Losch, assistant treasurer, Northwestern Bell Telephone Company; William A. Scott, American Bank Note Company, New York; William A. Wencel, comptroller, Northwestern Bell Telephone Company; Ross B. Johnson, secretary and treas urer, Northwestern Bell Telephone Company, and Harvey W. Roscoe, assistant treasurer, American Telephone and Telegraph Company, New York. This is one of the largest issues of bonds that has ever been issued by a com pany in the midwest. The bonds were sold on November 16th to a syndicate headed by Halsey-Stuart and Company of Chicago. This was the first large issue of bonds to be sold at competitive bidding after the election and reflected a test of the market. The bonds were readily absorbed in a broad distribution throughout the United States. The syndicate closed less than fifteen minutes after the books were opened and the bonds were bid up from the offering about three-quarters to one point. The bonds were originally priced to yield 3.18. Many insurance com panies, pension funds, institutions and individual investors throughout the coun try purchased these bonds. Inasmuch as the sale of this issue virtually tested the market at a crucial time, it was a credit to the company and the great agricultural states it serves that the bonds should be received so favorably. STATEMENT OF CONDITION December 31, 1948 RESOURCES Loans and Discounts . . . . . . $ 1 2 , 7 2 1 , 7 1 3 . 8 4 O v e r d r a f t s ................. 181.57 Banking House ........................... 9 0 ,000.00 U. S. Bonds 15 ,8 6 7 ,0 0 0 .0 0 Other Bonds ................................. 2 5 ,000.00 Warrants 3 4,596.01 Customers Liability for Le tter of C r e d i t ................. 5 ,0 00.00 War Savings S t a m p s .................. 5 00.00 Stock Federal Reserve Bank 37,5 0 0 .0 0 Cash and Sight Exchange. . . 5 ,8 6 2 ,8 8 5 .0 0 Due from Federal Reserve B a n k .......................... 6 ,6 2 7 ,1 2 1 .3 9 LIA B IL IT IE S C a p i t a l ............ $ 6 0 0 , 0 0 0 . 0 0 Surplus . 6 5 0 ,0 0 0 .0 0 Reserves . . . 5 3 2 ,4 7 7 .2 6 Undivided Profits . . . 1 3 0 , 4 5 4 . 4 1 $ 1,912,931.67 3 6 ,0 0 0 .0 0 Reserve for Dividends............ 5 ,0 0 0 .0 0 Letters of C re di t .......................... 5 ,7 5 0 .0 0 0 .0 0 Due to Federal Reserve Bank Deposits $33,05 9 ,1 1 9 .4 3 War Loan Deposits 508,446.71 3 3 ,5 6 7 ,5 6 6 .1 4 5 41,271,497.81 $ 4 1,271,497.81 NATIONAL BANK of COMMERCE LINCOLN, NEBRASKA 46 y e a r s at 13th a n d O S t r e e t s M e m b e r F e d e ra l D e p o s it In su r a n c e C o r p o r a tio n of directors of Omaha’s Metropolitan Utilities District. Chairman Con Heafey said that he and his fellow Democratic director, Dr. Willard H. Quigley, asked Mr. Thomas to serve out the term of Con gressman-Elect Eugene O’Sullivan, the third Democratic member of t h e board. Mr. Thomas, long-time member of the Democratic party, has played no active role in politics, however. Republican members of the board said that they would be “happy to go along with the appointment of Mr. Thomas.” Mrs. T. L. Davis, wife of the chair man of the board of the First National Bank of Omaha, was hostess at a tea recently to honor new members of the Nebraska Society of Colonial Dames. The tea followed a board meeting at the home of Mrs. Sloan Allen. Four Lincoln members were guests. Special checking account plans for small depositors were announced re cently by three downtown Omaha banks. Officials of the Omaha Na tional, First National and United States National Banks announced that the institutions were offering plans under which the depositor may pay for checking account service according to the number of checks he or she writes. Omaha wound up 1948 with bank deposits about 2 per cent lower than at the close of 1947. Loans were slightly higher at yearend than they were a year ago. Bank deposits at the end of 1948 amounted to $412,648,685 for the nine banks. The 1947 year-end figure was $421,409,213. Bankers said the drop is of no sig nificance. Several large deposits could have changed the total to the up side, they said. Year-end deposits were $41,310,744 higher than April, the year low, and $31,745,712 above July. Savings ac counts are down. Bankers noted, too, that the com parison of 1948 and 1947 year-end fig ures did not show the wide swings of other years. They look for Omaha area finances to hold at an even keel in 1949. Agricultural props are ex pected to be better than the condi tions in more industrialized centers. Loans at the end of 1948 totaled $100,449,180, a gain of about 7 per cent over the 1947 figure of $93,262,902. Loans at year end had climbed $9,500,000 above levels of last April and July. Banks’ holdings of Commodity Cred it Corporation paper on stored crops accounted for much of the loan gain, N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nebraska News said observers. Banks also reported increases in loans to buyers of me dium-priced homes and to livestock raisers. Members of the Omaha Chapter, American Institute of Banking, went on a tour recently of the new WorldId e r a 1d Building in World-Herald Square at Omaha. Lester E. Souba, auditor, Live Stock National Bank, is president of the chapter. Harry Greenway, Omaha investment banker, has sold his Omaha residence at 123 North Thirty-eighth Avenue and has taken an apartment at the Logan Hotel. Northern Natural Gas fornia, for a 10-day Christmas leave with his parents. He has been in Navy training since September. He will return to San Diego before report ing to New London, Connecticut. He has received an appointment to the Submarine Base. J. T. Stewart, Hi, is vice president and cashier of the First National Bank of Omaha. W. B. Millard, Jr., vice president of the Omaha National Bank, was among a group of 24 Nebraskans who left Omaha the middle of December in two Navy planes for a two-day “familiari zation course” at Pensacola, Florida. 77 The trip included a tour of the Pensa cola Base and a trip aboard the Air craft Carrier USS Wright. Daniel J. Monen, vice president of the Omaha National Bank, in charge of the trust department, has been elected president of the Creighton Uni versity Alumni Council. He succeeds Dr. Louis D. McGuire. The election was announced at a dinner-dance at the Hotel Paxton in Omaha, following a two-day alumni homecoming program. Three hundred and fifty alumni attended. Mr. Monen said that the Alumni Council will give Company, with headquarters in Omaha, has de clared a total dividend of 60 cents a share on its common stock, including a 45-eent fourth quarter regular divi dend and a 15-cent extra dividend. The dividend was to be paid December 29th to stockholders of record Decem ber 10th. .T. F. McDermott, vice president of the First National Bank of Omaha, spoke at the Creighton University Founders’ Day banquet in Omaha last month at Hotel Fontenelle. He is a member of the Creighton board of regents. The dinner, honoring Count, John and Edward Creighton, found ers of the University, is held annually for faculty members of the school. Bronze plaques were given to faculty members who have completed 25 years of teaching. Mr. McDermott declared that it is still basically true that “education is Mark Hopkins on one end of the log and a student on the other.” Mr. McDermott also spoke recently at the Joslyn Memorial in Omaha be fore the Omaha Coin Club. “The Mon etary System of the United States” was his topic. Dave Davis, Jr., son of the vice pres ident of the Omaha National Bank, with Dave Hanighen, won the cham pionship in the Omaha Club’s handi cap squash tournament. Mr. Davis defeated Jack Kennedy, Jr., in the Class A finals. Statement of Condition The First National Bank of Lincoln LINCOLN, NEBRASKA (ORGANIZED 1871) At the Close of Business December 31, 1948 ASSETS $15,370,497.17 25,396,061.72 Cash and Due from Banks......................... U. S. Government Bonds........................... Other Bonds and Securities.................... Federal Reserve Bank Stock.................... Loans ............................................................... Interest Earned, Not Due........................... Banking House ............................................. . . 1,556,982.19 81,300.00 7,603,265.60 135,218.95 506,729.99 Total Assets...................................................................$50,650,055.62 LIABILITIES Capital Stock ...............................................$1,500,000.00 Surplus ............................................................ 1,225,000.00 Undivided Profits ........................................ 535,860.79 $ 3,260,860.79 Discount Unearned ................................................................ 50,537.97 Reserve for Taxes, Etc............................................................. 62,541.77 Deposits ....................................................................................... 47,276,115.09 Total Liabilities............................................................$50,650,055.62 OFFICERS P. R. E A STE R D A Y .................... Ohairmcm A. C. GLANDT . Vic@-Pres. and Gashi©r GEORGE W. HOLMES . . . . President R- 1- B E C K E R Vice-President HOWARD FREEMAN . Exec. Vice-President C^ IFFORD ^ ; WESTON . Vice-President LYLE F. STONEMAN . . Vice-President BURNHAM YATES . . . Vice-President q H. C R A N E Asst. Cashier E. U. GUENZEL . . . . Vice-President R. A. GESSNER . . . . Asst. Cashier YOUR STA TE BANKERS ASSOCIATION OFFICIAL SAFE, V A U LT AND TIMELOCK EXPERTS F. E. DAVENPORT & CO. . . Jim Stewart, son of Mr. and Mrs. J. T. Stewart, III, returned the middle of December from San Diego, Cali- OVER SEVENTY-SEVEN YEARS OF BANKING EXPERIENCE M em ber Federal Deposit Insurance Corporation OMAHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n Banker, J a n u a r y , 1949 78 Nebraska News more attention to the placement of graduates. in a speech at Omaha before the Ne braska Bankers Association. Mr. Kraschel declared that the speaker “dodged the facts.” “ According to press reports of the speech,” said Mr. Kraschel, “he failed to explain that my article in the Farm Credit Leader was based on testimony before Congressional committees by ABA representatives. Nelson <4. Kraschel, former gover nor of Iowa and now general agent for the Farm Credit Administration, with headquarters at Omaha, recently replied to the president of the Ameri can Bankers Association, Evans AVoollen, Jr., in his attack on farm credit The First National Bank St. Joseph, Missouri STATEMENT OF CONDITION at the close of business December 31, 1948 RESOURCES Cash and Due from Federal Reserve and Other Banks...............................$10,619,287.57 U. S. Government Obligations........................................................................ 15,064,476.12 Other Bonds and Securities............................................................................... 1,781,784.70 Federal Reserve Bank Stock............................................................................. 30,000.00 Loans and Discounts ......................................................................................... 4,282,468.51 Bank Building, Fixtures and Other RealEstate............................................. 1.00 Interest Earned Uncollected and OtherAssets............................................. 93,165.95 Total .................................................................................................................. $31,871,183.85 LIABILITIES Capital .................................................................................................................. $ 500,000.00 Surplus .................................................................................................................. 500,000.00 Undivided Profits ............................................................................................... 289,803.99 Reserve for Contingencies .............................................................................. 68,914.25 Reserves for Taxes, Dividends, etc................................................................. 49,607.18 Deposits ................................................................................................................ 30,462,858.43 Total ...................................................................................................................$31,871,183.85 MEMBER OF FEDERAL DEPOSIT INSURANCE CORPORATION “Mr. Woollen’s statement t h a t United States Treasury deposits in banks were never intended to be and have not been a profit-making device for banks is refuted by the Congres sional hearing reports.” Internal Operations Survey Assistance in working out the op erational problems of country bank correspondents and friends is the de sign of a new service introduced the first of this year by the correspondent bank division of the Live Stock Na tional Bank of Omaha. It will be directly supervised by Armand S. “ Chico” Chaves, comptroller of the bank. The Live Stock National’s new serv ice, officially labeled its “ Internal Op erations Survey,” is the result of the enthusiastic acceptance and apprecia tion of surveys of this type made for several banks during the past year. It has been developed more complete ly as a result of these experiences, and is offered in 1949 as a formal part of Live Stock National’s program of helpfulness to correspondents. It is the plan to make available trained personnel from within Live Stock National who will make a com plete survey of the internal operations of a bank on request, and then follow with recommendations for greater effi ciency if such possibilities present themselves. This survey work will be under the direction of Comptroller “Chico” Chaves, well-known to many bankers by reason of his years of service as a national bank examiner. Mr. Chaves joined the Live Stock National as auditor in 1946 and was elected comp troller in November, 1948. A BANK CAN MAKE PROFITABLE INVENTORY LOANS W h en S e c u r e d B y O u r WAREHOUSE RECEIPTS Consultation Service Without Obligation — Address Inquiries to Our Nearest Office St. Paul Terminal Warehouse Co. ST. P A U L , M IN N E S O T A Des Moines Office — Other Offices — O m aha Office 515 Iowa-Des Moines National Bank Building ST. PAUL MINNEAPOLIS MILWAUKEE DETROIT CHICAGO INDIANAPOLIS NEW YORK BOSTON PHILADELPHIA PITTSBURGH BUFFALO SYRACUSE DALLAS MEMPHIS ATLANTA ALBANY, GA. CHARLOTTE SHREVEPORT JACKSONVILLE MIAMI 1105 First National Bank Building T. C. CANNON District Manager N o r t h w e s t e r n Ba nker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ELMER J. OTTESON District Manager 1o « All other officers and directors were re-elected. a West Branch Election HARRY W. SCHALLER President Storm Lake Ross Succeeds Woods In Council Bluffs Lewis W. Ross, president of the Citizens State Bank at Oakland, Iowa, became president of the First National Bank of Council Bluffs January 1st. He succeeds George W. Woods, who resigned because of ill health. Board The First State Bank of West Branch, Iowa, held its annual meeting with the following directors being re elected: Fred W. Hinkhouse, J. Curtis Barnhart, Floyd T. Fawcett, William W. Wertzbaugher, N. P. Olsen, H. Grant Hemingway and Lawrence C. Rummells. The officers and staff elected by the board of directors were: Fred W. Hinkhouse, president; J. Curtis Barn hart, vice president; Lawrence C. Rummells, cashier; E. L. Gregg and Harold A. Pedersen, assistant cashiers; Carol B. Slach, secretary, and Glenn W. Jacobsen and Marilyn A. Heming way, bookkeepers. The bank is starting its seventyfourth year of service in the commu nity. It paid a dividend of 12 per cent and transferred $50,000 to the surplus account, making its capital structure $25,000 common stock; $125,000 sur plus, and $20,235 undivided profits. FRANK WARNER Secretary Oes Moines director of the First National for sev eral years and will continue as presi dent of the Citizens State Bank at Oakland. Ben Summerwill Better The many friends of Ben S. Sum merwill, veteran banker and president of the Iowa State Bank and Trust Company, Iowa City, will be delighted to know that he has recovered nicely from the minor heart attack which he suffered in Chicago in December while attending the A.B.A. Credit Conference. The attack was less serious than first diagnosed, and after a week in a Chicago hospital and a week in an Iowa City hospital, he is back at his desk in the bank on “limited duty.” He plans, however, to go south next month for a brief rest and vacation. Entertains Cattlemen One of the most successful public relations ideas carried through recent ly by bankers was the dinner given for 231 cattlemen in Corning, Iowa, last month by B. P. St. John, president and cashier of the Okey-Vernon Na tional Bank of Corning. Mr. St. John had invited the many farm and stock raising customers of the bank and hopes to make this an annual affair. Boost Capital at Dunlap l e w is w . ROSS President, First National, Council Bluffs Chairman Don B. Stoufer made the announcement of these changes. Mr. Woods had been associated with the First National Bank since 1934 when he left his position as state banking commissioner for Nebraska. He served as executive vice president at first, then as president the past few years. Mr. Ross began his banking career at the First National as a messenger in 1915. He attended Abraham Lin coln high school in Council Bluffs, Boyles Business College in Omaha and the American Institute of Banking. He went to Oakland in 1919 and has been there since. He has been a D id you know Stockholders of the Dunlap Savings Bank, Dunlap, Iowa, voted at the regular January meeting to increase the capital stock from $25,000 to $50,000 through the payment of a 100 per cent stock dividend. This will make the capital account of the Dunlap Savings Bank as fol lows: Capital, $50,000; surplus, $50,000, and undivided profits of $67,000. G. W. Hull resigned as a director on account of ill health and was replaced by E. J. Millard. To Be RFC Director W. K. Bramwell, chairman of the board of the Hardin County Savings Bank at Eldora, Iowa, is slated for S io u x C ity th ere’s a g a p in you r Cash L ette r A s k us how to brid ge it w ith ou t costin g you a Scarborough & Company cent. Insurance Counselors N A T IO N A L https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANK B U IL D IN G C ro u M re As this issue goes to press officers of Group One of the Iowa Bankers Association are making plans for the program and enter tainment for the annual meeting of Group One in Sioux City, Saturday, February 12th. Headquarters, as usual, will he at the Martin Hotel and the Sioux City Clearing House Association is already appointing its committees to handle the event. protection th a t you could “ drive a tru ck th r o u g h ?” F IR S T Addressing the group was Rex Beresford, agricultural economist of Iowa State College. C H IC A G O 3, IL L IN O IS STATE to Banks 4325 N o r t h w e s t e r n Banker, J a n u a r y , 1949 80 Iowa News appointment by President Harry S. Truman as a director of the Recon struction Finance Corporation. Although a Republican, Mr. Bramwell has the support of Iowa Demo cratic State Chairman Jake More to fill the vacancy caused by the resig nation of Henry T. Bodman, also a Republican. The unexpired term to be filled by Mr. Bramwell would run until June 30, 1950. Although there has been no official confirmation on Mr. Bramwell’s ap pointment by President Truman, reli able Washington sources said he has been introduced as “the new member of the board.” The position pays an annual salary of $12,500. Zach G. Suiter Zach G. Suiter, 57, president of the Farmers Savings Bank at Princeton, Iowa, died last month after an illness of some length. He had been associated with the Farmers Savings Bank since 1912, working his way to the presidency through the various positions in the bank. Mr. Suiter is a former presi dent of the Scott County Bankers Association and w a s well-known among Iowa bankers. Recently he was elected president of the Scott county board of education, culminat ing a long interest in the welfare of public schools. He had long been ROVERS FRIENDLY SERVICE C O V E R S ALL C H I C A G O . THE DROVERS N A T IO N A L BANK IS A DIRECT C H IC A G O ITS MEMBER OF THE C L E A R IN G HOUSE. FACILITIES FOR SPECIAL HANDLING OF ITEMS THROUGH OUT THE CITY ARE COMPLETE. active in civic affairs within Prince ton also. Mrs. Suiter was elected to the board of directors to fill this vacancy. He is survived by his wife, two children, a granddaughter and two brothers. His son, Glen H. Suiter, is connected with the Farmers Savings Bank as assistant cashier. Promoted at Oakland Delmar F. Busse has been named executive vice president of the Citi zens State Bank at Oakland. Iowa. He has been vice president of that insti- DE LM A R F. BUSSE Named executive vice president tuition for some time and in his new position will assume administrative duties of the Oakland bank. His election as executive vice presi dent was made known following the announcement that the Citizens State Bank’s president, Lewis W. Ross, also has been elected president of the First National Bank in Council Bluffs. Since Mr. Ross will assume active manage ment of the latter bank, Mr. Busse will supervise the business of the Oakland Bank. Guest Speaker Frank Warner, secretary of the Iowa Bankers Association, was a re cent speaker before the senior class in economics at Simpson College, Indianola, Iowa. DROVERS NATIONAL BANK DROVERS TRUST 0 SAVINGS BANK U N I O N S T O C K Y A R D S , C H I C A G O Members, Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis New President at Laure! T. C. Sheek has been elected presi dent of the Peoples Savings Bank of Laurel, Iowa, succeeding C. W. Buhrow, 85, who died recently. T. L. Laverty was elected vice president replacing Mr. Sheek, and Alex Louks, son of a previous director, was elected Iowa News 81 STATEMENT OF CONDITION DECEMBER 31, 1948 RESOURCES Loans and Discounts _$ 8,458,418.42 <)ther Bonds and Stocks 50,000.00 Customers Liability on Acceptances 10,216.80 Overdrafts 254.44 Government <)bligations _$6,614,599.10 Municipal Bonds _ 401,500.00 Cash and Due from Banks _ 3,025,756.21 10,041,855.31 $18,560,744.97 LIABILITIES Capital Stock— Common Surplus Undivided Profits Reserves Unearned Discount Bank Liability on Acceptances Deposits _$ 600,000.00 200,000.00 151,591.41 382,555.59 69,650.26 10,216.80 _ 17,146,730.91 $18,560,744.97 Í VALLEY BANK AND TRUST COMPANY DES M O IN E S MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker, J a n u a r y , 1949 82 Iowa News to the board, filling the vacancy left by Mr. Buhrow’s death. Hugh C. Mc Cleary, cashier, and S. M. McCleary are the other board members. Mr. Buhrow was one of the original directors when the Peoples Savings Bank was organized in 1909. He was elected president of the bank in 1947, succeeding his older brother, C. F. Buhrow, who retired. C. W. Buhrow was a successful farmer in the Laurel community until he retired in 1921. Mr. Buhrow had missed only a very few board meetings since 1922. Valley Bank Promotions Frederick M. Morrison, president of the Valley Bank and Trust Company ★ ★ of Des Moines, has announced the promotion of Ray Thompson to the position of vice president, he former ly having been assistant vice presi dent. James Morrison has been elected assistant cashier. Mr. Thompson has been associated with the bank since 1937 and has developed the installment loan depart ment into a very successful part of the bank, and will continue as head of that division of the bank’s activi ties. James Morrison has been in the bank for the past two years, and prior to that attended “ The Hill” School at Pottstown, Pennsylvania, where he graduated. Subsequently he attended the University of Iowa and Grinnell College before entering the banking business. ★ Condensed Statement of Condition DECEMBER 31, 1948 Cash U. S. State, Other Stock Loans Bank Other ASSETS and Due from B a n k s ................................................$ 6,029,718.60 Government B o n d s ..................................................... 7,619,132.58 County and Municipal B o n d s ................................ 164,876.80 Bonds and S e c u r it ie s ................................................ 87,848.77 in Federal Reserve B a n k .......................................... 24,000.00 and D is c o u n t s ..................................... . . . . 5,856,602.23 Building, Furniture and F i x t u r e s .............................. 164,474.23 A s s e t s ............................................................................... 6,157.49 RAY THOM PSO N Vice President The officers of the bank are now as follows: Frederick M. Morrison, pres ident; Winfield W. Scott, senior vice $19,952,810.70 LIABILITIES C a p i t a l .................................................................... $400,000.00 S u r p l u s ............................................................... 400,000.00 Undivided Profits .............................................. 117,635.87 107,000.00 Reserve forContingencies : ......................... Total Capital A c c o u n t ..................................................... $ 1,024,635.87 Reserve for Taxes and I n t e r e s t ......................................... 67,344.98 Other Liabilities .................................................................... 101.00 Deposits ..................................................................................... 18,860,728.85 $19,952,810.70 A. G. SAM, President J. T. Grant, Vice President H. H. Strifert, Assistant Cashier J. R. Graning, Cashier K. J. Shannon, Assistant Cashier E. A. Johnson, Assistant Cashier W. L. Temple, Assistant Cashier J. Ford Wheeler, Auditor "Jùiàt N A T IO N A L BANK in SIOUX CITY MEMBER FEDERAL RESERVE SYSTEM MEMBER FEDERAL DEPOSIT IN SU RA N CE C O RP O R A T IO N N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 JAMES M O R R ISO N Assistant Cashier president; J. R. Astley, Edward P. Kautzky, Roy E. Huber and Ray Thompson, vice presidents; Frank M. Thompson, cashier, and Carl W. Alt man, George W. Gill and James Mor rison, assistant cashiers. On December 31, 1948, the Valley Bank & Trust Company had a capital stock of $600,000, surplus and undi vided profits of $351,000, reserves of $382,000 and deposits of over $17,146,000. Iowa News 83 HERE'S HOW IT ADDS UP AT THE $#¿ ^ B A N K M ARQUETTE 2 OF M IN N E A P O L IS RESOURCES L l A B I LI T 1 E S (December 31, 1948) (December 31, 1948) Loans and Discounts__________ $ 8,861,239.49 O verdrafts___________________ 945.72 Cash and Due from Hanks____ 10,950,817.63 LI. S. Government Securities___ 11,939,148.06 Municipal and Other Securities 1,851,072.33 Banking House ______________ 154,587.63 Furniture and Fixtures_______ 108,945.75 Other Resources ____________ 6,463.49 Total Resources https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .133,873,220.10 RUSSELL L. STOTESBERY (X) D ep osits_________ .$32. 655,268.88 C a p ita l__________ 500.000. 00 Surplus _________ 500.000. 00 Undivided Profits 217,951.22 Total L iabilities_________ $33,873,220.10 LYNN FULLER P r e sid e n t E x ec u tiv e V ic e P r e s id e n t DEPARTMENT OF BANKS AND BANKERS CHARLES C. RIEGER I ic e P r e s id e n t $ > OTTO H. PREUS A ssista n t V ic e P r e s id e n t N o r t h w e s t e r n Banke r, Jan u a r y , 1949 84 Iowa News •#. 11. iS u b b e ll X a m e d 0 b a i n n a n : S . f . iH dt§enn E l e c t e d P r e s i d e n t |AMES W. HUBBELL was elected chairman of the board of the Bank ers Trust Company, Des Moines, and Scott C. Pidgeon was elected president SCOTT C. PIDGEON President JAMES W. H U B B E LL Chairman of the Board to succeed him by the board of direc tors at their annual meeting January 11th. Mr. Pidgeon has been executive vice president of the bank. Also, M. N. Baird was elected assistant cashier in charge of the mortgage loan depart ment. Other changes and promotions an nounced by Mr. Hubbell following the board meeting include the naming of George Moeckly, vice president, as manager of the credit department, and Robert K. Popple as manager of the personal loan department, succeeding Mr. Moeckly. GEORGE M OE C K LY Vice President Manager Credit Department N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Hubbell has been a director of Bankers Trust Company for over 22 years. In 1944 he became actively associated with management of the bank as vice president, and May 31, 1949 1947, was elected president to succeed the late B. F. Kauffman, who was named chairman of the board at that time. Mr. Kauffman, founder of Bank ers Trust Company, died last July. Mr. Hubbell was born in Des Moines and was graduated from Harvard Uni versity with a B.A. degree in 1917, entering military service shortly there after and serving as a first lieutenant in the infantry. Mr. Hubbell also is M. N. BAIRD Assistant Cashier secretary-treasurer of the Equitable Life Insurance Company of Iowa, and trustee of the Frederick M. Hubbell estate. For many years Mr. Hubbell has been active in the civic affairs of Des Moines and has participated in those enterprises which have helped to de velop the city and the state. He is a past president of both the Des Moines Chamber of Commerce and the Great er Des Moines Committee. Mr. Pidgeon has been with the Bankers Trust Company more than 31 years. He began working for the bank at the time of its incorporation in 1917, was elected vice president in 1932 and was named executive vice president at the meeting of May 31, 1947. A native of Salem, Iowa, he attended public schools in that com munity, then entered Iowa Wesleyan College at Mt. Pleasant, later attend ing the University of Iowa. Follow ing graduation from the latter in 1915, he entered the banking business in Des Moines with the First Federal State Bank the same year, then joined the Bankers Trust Company upon its organization. Mr. Pidgeon is a member of the board and chairman of the finance committee of the American Mutual Life Insurance Company of D e s Moines. In community affairs Mr. Pidgeon has always taken an active leadership and is a past president of the Cham ber of Commerce and at the present time is treasurer of that organization. He is also secretary-treasurer of the Des Moines Rotary Club and treasurer of the 133rd district of Rotary which comprises the southern half of Iowa. In taking over management of the credit department, G. A. Moeckly, with the Bankers Trust for 20 years, re placed J. W. Edenburn who has re tired. Under the supervision of Mr. Moeckly, the credit department of the Bankers Trust will be expanded and R O B E R T K. POPPLE Personal Loan Manager iowa News 85 Statement of Condition DECEMBER 31, 1948 ASSETS Cash _________________________ $17,049,445.19 United States Government Securities_________ 34,461,210.38 L oans________________________________________ 22,188,891.13 Municipal Bonds ____________________________ 5,214,877.66 Bank Premises ______________________________ 700,000.00 Furniture and Fixtures______________________ 94,447.34 DIRECTORS Federal Reserve Bank Stock__________________ 138,000.00 V. O. FIGGE Overdrafts ___________________________________ 1,460.26 P residen t $79,848,331.96 J. M. HUTCHINSON ■ E xecu tive V ice P resid en t CHARLES J. JOHNSON Independ ent B iscuits, In c. JOS. S. KIMMEL L I A B I L 1T I E S Capital ______________________________________ $ 600,000.00 R epublic E lectric Company Surplus ______________________________________ 4,000,000.00 FREDERICK H. LAMB Reserves and Profits_________ 7_______________ 1,318,746.98 Physician H. E. LITTIG Deposits _____________________________________ 73,929,584.98 D avenport HERMAN STAAK Vice $79,848,331.96 P resid en t CABLE G. VON MAUR P etersen -H a rn ed -V on Maur, Inc. THOMAS J. WALSH Walsh C onstruction Company C. D. WATERMAN Lane and W aterm an https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DAVENPORT B A N K A N D T R U S T Ä % « .C O M P A N Y (illembet Jed&xaL R je ie A iw c S ^ ± te m DAVENPORT, IOWA Member Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , 1949 86 Iowa News enlarged, with many new facilities added, which will place it in a better position to serve local customers, as well as out of town patrons and cor respondents of the bank. The Bankers Trust Company has enjoyed continuous growth since its founding. Deposit figures for Decem ber 31, 1948, were $57,986,376, an in crease of $2,348,486 over deposits as of December 31, 1947. Officers of the bank are now as fol lows: J. W. Hubbell, chairman of the board; S. C. Pidgeon, president; C. W. Mesmer, vice president; F. C. Atkins, vice president and cashier; L. Nevin Lee, vice president; F. S. Lockwood, vice president and trust officer; Wil liam Ellison, vice president; G. A. Moeckly, vice president; A. F. Erick son, J. B. Monahan and M. N. Baird, assistant cashiers, and S. G. Barnard, assistant secretary. Mr. Winga will fill the vacancy on the board created by the recent death of Dr. W. L. Alcorn. Dr. Alcorn had been a member of the board at the bank since its organi zation in 1932 and was active in the affairs of the institution until his death. Named Bank Director Gets Community Award John Winga of Washington, Iowa, has been named to the board of direc tors of the Washington State Bank, it was announced recently by L. A. Hol land, vice president. to serve you better than ever in 1949 Condensed Statement of Condition Decem ber 31, 1948 RESOURCES C ash a n d D ue fr o m B a n k s ............................................................................................ $ B o n d s (C a rried at le s s than m a rk et v a lu e ) U. S. G o v e rn m e n t and U . S. G o v e rn m e n t G u a ra n te ed B o n d s ...........................................................$ 2 8 , 7 9 6 . 5 6 2 . 5 6 F e d e r a l L and B ank, S tate and M u n icip a l B on d s 9 ,0 8 7 .8 0 6 .4 9 H ig h R a ted C orp ora tion S e c u r it ie s ......................... 5 0 7 ,4 5 9 .5 5 5 2 ,2 5 9 ,0 2 0 .0 8 F e d e r a l R e s e rv e B ank S t o c k ......................................................................................... L oa n s and D is c o u n t s .......................................................................................................... G rand A v e n u e B ank B ld g .—U n e n cu m b e re d (C ost o v e r $ 1 , 0 0 0 , 0 0 0 ) . . N ew C ity B ank B u il d i n g .................................................................................................. O th er R ea l E sta te (O ne P r o p e r t y ).............................................................................. F u r n itu r e and F ix tu r e s (C ost o v e r $ 2 0 0 , 0 0 0 ) ..................................................... C u s to m e r s ’ L ia b ilit y A c c o u n t L e tte rs o f C r e d it ............................................... C u s to m e r s ’ L ia b ilit y on A c c e p ta n c e s O u ts ta n d in g ............................................. A c c r u e d I n te r e s t R e c e iv a b le ......................................................................................... O v e rd ra fts ............................................................................................................................. 1 5 0 , 0 0 0 .0 0 5 2 ,0 9 0 ,9 0 7 .8 2 1 .0 0 1 ,7 8 8 ,0 8 2 .3 9 1 -0 0 1 .0 0 1 ,1 3 7 ,1 7 4 .0 0 1 9 ,3 7 4 .6 1 2 7 3 , 8 9 0 .7 7 2 , 9 2 8 .4 1 T O T A L RESO U RCES 3 8 ,3 9 1 ,8 2 8 .6 0 ............................................................................................. $ 1 4 6 , 1 1 3 , 2 0 9 . 6 8 LIABILITIES C a p ita l S tock (P aid I n ) ...................... $ 4 0 0 ,0 0 0 .0 0 C a p ita l S tock (E a r n e d )...................... 1 , 6 0 0 , 0 0 0 . 0 0 $ 2 ,0 0 0 ,0 0 0 .0 0 S u rp lu s (E arn ed ) ...................................................................... U n d iv id e d P rofits (E a r n e d )..................................................... 3 ,0 0 0 ,0 0 0 .0 0 1 ,8 2 8 ,2 5 4 .3 6 ß I n v e s t e d C a p ita l ................................................................................................. U n ea rn ed I n te re st ............................................................................................... R e s e r v e f o r I n te r e s t an d T a x e s ...................................................................... Our L ia b ilit y A c c o u n t L e tte rs o f C red it I s s u e d ................................. O ur L ia b ilit y on A c c e p t a n c e s ......................................................................... D e p o s its ..................................................................................................................... T O T A L L IA B IL IT IE S The above 6 ,8 2 8 , 2 5 4 . 3 6 4 3 4 ,0 5 9 . 1 3 1 9 5 ,8 3 5 .0 1 1 ,1 3 7 ,1 7 4 .0 0 1 9 ,3 7 4 .6 1 1 3 7 , 4 9 8 ,5 1 2 .5 7 Royal E. Bennett, assistant cashier of the First National Bank in Hum boldt, Iowa, received an award of con siderable distinction last month when he was selected to receive the 1948 Community Service Award of Hum boldt and Dakota City. His selection was made by presidents of the Cham ber of Commerce, Rotary, Lions, Min isterial Association and the Humboldt Board of Education. The award presented to Mr. Bennett was a plaque suitably inscribed and given by the Humboldt Republican and Independent. One of Mr. Bennett’s main contribu tions to the welfare of Humboldt was his constant effort on behalf of the city’s young people, providing them with recreation, sports programs and modern athletic equipment. In this activity he organized complete base ball programs for boys and girls of all ages, got the ball diamond at the fairgrounds lighted for night play, had outstanding professional teams and amateurs brought in for exhibi tions, organized basketball programs for winter time in the high school gym and organized teams among old er men in the community for their recreation. Mr. Bennett also organized workers in Humboldt county and directed the entire drive for the Christian Rural Overseas Relief Program. ............................................................................................ $ 1 4 6 , 1 1 3 , 2 0 9 . 6 8 s ta tem en t is c o rre ct. R. C. Here We Go Again! K E M P E R . P re s id e n t OFFICERS R u fu s C r o s b y K em p er, P res. G e o r g e C. K o p p , E x ec. V ic e -P r e s . J a m e s S. N e e ly , V ic e -P r e s . F . D. F a r r e ll, V ice -P re s . K e a rn e y W o rn a ll, V ic e -P r e s . J . M ilto n F re e la n d , V ic e -P r e s . D a le R. A in s w o rth , V ic e -P r e s . J a m e s F . M cP h erson , V ic e -P r e s . L. E arl S te p h e n s o n , V ice -P re s . C y r il J . J e d lick a , V ic e -P r e s . R o b e r t L . G reen e, V ic e -P r e s . J a m e s R. G a y ler, V ic e -P r e s . E arl W . D e p u ty , T ru s t O fficer R ich a rd T. P e n d le to n , T ru s t O fficer L o u is G. L o s ch k e , C a s h ier E d w a rd F . L y le , C o m p tr o lle r Joh n E. H o ffm a n n , A s st. V ic e -P r e s . Jack B la ck , A s st. V ic e -P r e s . J oh n Y on ts, A s st. V ic e -P r e s . E w a rt H. B u rch , A s s t. V ic e -P r e s . J a m es F. M ack, A s st. V ic e -P r e s . B e n ja m in B. H a n is, A s s t. C a sh ier C h a rles W . K o e s te r, A s s t. C ash ier Ja ck S. K itch e n , A s st. C a sh ier A lle n M o rro w , A s st. C a sh ier C h ester L. B re w e r, J r ., A s s t. C ash ier E m o ry F . J a m es , J r ., A s st. C ash ier G uy S. H a d s e ll, A s st. C a sh ier D avid B. C ox , A s s t. C a sh ier K . H. A rm s tro n g , A s s t. T ru s t O fficer D e w e y S h ille r s to n , A s st. T ru s t O fficer “And you mean to tell me that in your section of California you have 365 days of sunshine a year?” “ Exactly so, sir, and that’s a mighty conservative estimate, too.” • DES MOINES BUILDING-LOAN & CITY NATIONAL ESTABLISHED1913 MEMBER FEDERAL DEPOSIT 1 INSURANCE CORPORATION 10TH A N D SAVINGS ASSOCIATION Oldest in Des Moines & 'ïiu b t 210 6th A v e . GRAND ELMER E. MILLER Pres, and Sec. • KANSAS C I TY 10, MO. D ial 4-7119 HUBERT E. JAMES Asst. Sec. FOR YOUR ENJOYMENT . . . Listen to the “ WORLD OF MUSIC” LL° n o r t h w e s t e r n Banker, J a n u a r y , 1949 Digitized for NFRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis K. A *4 KRNT, 1350 KC 1 to 1:30 p.m. Sundays Iow a N e w s Common Stock Changes President of C. of C. The State of Iowa Department of Banking announces t h e following changes in capital structure among Iowa state banks: The Kerndt Brother Savings Bank at Innsing increased its common stock from $30,000 to $60,000 by payment of a stock dividend. The Dallas County Savings Bank at Minburn increased its common stock from $15,000 to $30,000 by payment of a stock dividend. Milton C. Barnett, cashier of the Guthrie County State Bank, Guthrie Center, Iowa, will serve as president of the Chamber of Commerce for the coming year, having been elected to that office last month. He will take the place of James Quegg, who has held the office of president the past year. Elected President At a meeting of the board of direc tors of First State Bank of Churdan, Iowa, recently, Yates Allen was named president of the bank to succeed the late D. E. Whitney. Mr. Allen has been with the First State for over forty-one years and had retired as active vice president and cashier a year ago last August. He has been an executive officer and director of the bank for over thirty years. At the same meeting H. W. Read ing and Fred O. Bauer, directors, were named as vice presidents. C. C. Jacobsen C. C. Jacobsen, 65, a banker for 32 years at Mapleton and Sioux City, Iowa, died at his home in Iowa City last month. After retiring from the banking business, he took charge of the regional Agricultural Credit Cor poration at Sioux City, then for nine years was director of the RACC divi sion of the Farm Credit Administra tion in Washington, D. C. Mr. Jacobsen is a past president of the Iowa Bankers Association, was deputy superintendent of the state banking department at one time, and had been a member of the Iowa bank ing board. Heads Fayette Bankers Carl B. Schori, assistant cashier of the First National Bank of West Union, Iowa, was elected president of the Fayette County Bankers Associa tion at the meeting in Fayette last month. Churchill T. Williams, vice president and cashier of the Oelwein State Bank, was named vice president and Herbert Colby, also of Oelwein, was elected secretary-treasurer. YOUR STA TE BANKERS ASSOCIATION OFFICIAL SAFE, V A U LT AND TIMELOCK EXPERTS Elmer E. Kirkhart Elmer E. Kirkhart, 58, manager of the Lorimor office of the Commercial State Bank of Afton, Iowa, died last month of a sudden heart attack suf 87 fered while returning to his home from a trip in the country. He had been manager of the Lorimor office the past five years. Lyon County President Carl Schoening, cashier of the Les ter State Bank, Lester, Iowa, was elected president of the Lyon County Bankers Association last month. John J. Porter, executive vice president and cashier of the Lyon County State Bank at Rock Rapids, is the new vice president and Hugo Ross, assistant cashier of the same bank, is the new secretary-treasurer. Statement of Condition December 31, 1948 ASSETS Cash on Hand and on Deposit with Banks............... $ 8,190,507.67 United States Government Securities........................... 10,856,567.27 Other Bonds and Securities........................................... 287,006.94 Loans and Discounts....................................................... 7,558,050.89 Security National Bank Building, Vault and Fixtures 325,651.00 Federal Reserve Bank Stock......................................... 30,000.00 Other Assets ..................................................................... 6,019.94 $27,253,803.71 LIABILITIES Capital ...............................................................................$ 500,000.00 Surplus ............................................................................... 500,000.00 Undivided Profits ............................................................. 142,115.35 Deposits ............................................................................. 26,111,688.36 $27,253,803.71 OFFICERS D IR E C TO RS Charles R. Gossett, P resid en t Paul Bekins B. M. Wheelock, V ic e P resid en t Charles R. Gossett Albert C. Eckert, V ic e P resid en t Harold A. Jacobsen Daniel B. Severson, V ic e P resid en t Edward C. Palmer R. Earl Brown, Cashier George L. Booth Robert W. Lewis, A ssista n t Cashier Otis P. Garrison Frank H. Abel. A ssista n t Cashier Wm. W. MacFarlane Charles H. W alcott, A ssista n t Cashier George C. Pechstein Orville Boe, A ssista n t Cashier Harry P. Pratt Howard L. Johnson, V ic e P resid en t and Trust Officer C V E C U R IT V of Sioux. Cits? Member Federal Deposit Insurance Corporation F. E. DAVENPORT & CO. OMAHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N o r t h w e s t e r n Banker, J a n u a r y , 1949 88 Iowa News New Cashier at Yale § 00 »s Jay W. Hemphill, who has been associated with the Farmers State Bank at Yale, Iowa, for the last 23 years, more recently as assistant cash ier, has been named cashier of that institution to succeed the late Guy E. Heater. 3 § 0 > iii0 »s N e w s A LLEN WHITFIELD, prominent Charles H. Arthur , Des Moines attorney and a direc tor of the Valley Bank and Trust Com pany, was elected president of the Des Moines Chamber of Commerce last month, succeeding Richard R. Rollins, investment counselor and a director of the Bankers Trust Company, Des Moines. Charles H. Arthur, vice president and a director of the De Witt Bank and Trust Company, De Witt, Iowa, died last month. Winfield W. Scott, senior vice presi dent of the Valley Bank and Trust Company, was re-elected vice presi dent along with E. E. McConney, pres ident of Bankers Life Company. E. T. Meredith, Jr., vice president, treasurer and general manager of Meredith Pub lishing Company, and a director of the Bankers Trust Company, is a new ly-elected vice president. Scott C. Pidgeon, president of Bankers Trust Company, was re-elected treasurer. Directors re-elected for three-year terms included Harold P. Klein, vice president of the Iowa-Des Moines Na tional Bank. E. F. Buckley, president of the Centra] National Bank and Trust Company, was appointed to the board by the directors. Still serving on the board are Herbert L. Horton, president of the Iowa-Des Moines Na tional Bank; James W. Hubbell, chair man of the board of Bankers Trust Company, and Gardner Cowles, a di rector of Iowa-Des Moines National Bank. Rolfe (). W agner, president of the Capital City State Bank, is the new president of the Des Moines Clearing House Association. J. W. Hubbell, Make TIME Count In Your Favor All Through the Year With higher interest rates and in creased reserves, time is more impor tant than ever in the handling of your transit items. Every minute lost costs money. Every minute saved means extra profit. So let Commerce 24-hour Transit Service work to your advantage this year. Our complete day and night transit units eliminate any possible delay by immediately dispatching items direct to towns and cities throughout the U. S.—saving from one to three days on many of them. With more direct sending points than any other bank in the L1. S.— and private wire system to all prin cipal financial centers—tlie Commerce offers you the tops in transit service and efficiency. (om m crcejrust (¿mipaiiy5 (C a p ita l ^ d u n d i ¿dxceed 2 2 7^/t/^ton <2 )o (la ri K A N SA S C IT Y S L A R G E S T BANK E stab lish e d 1 8 6 5 N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 B K K Ï Ï RO LFE O. W AG N E R Heads Des Moines Clearinghouse chairman of the Bankers Trust Com pany, and Herbert L. Horton, presi dent of the Iowa-Des Moines National Bank, were elected vice presidents. Fred C. Atkins, vice president and cashier at Bankers Trust Company, was re-elected secretary for the 10th year. Members of the staff of the IowaDes Moines National Bank, their hus bands and wives, a total of 308 per sons, attended the bank’s annual Christmas party at Younkers Tea Room last month during Christmas week. Three new members of the 25-Year Club received watches. They are: Al bert J. Robertson, vice president; Iowa News Louise Flory, secretary, and Richard B. Stubbins, teller. Dancing and other entertainment followed the dinner and formal part of the program. At the annual Christmas party for the staff of the Central National Bank and Trust Company last month, E. F. Buckley, president, presented watches to four men who had completed 20 years of service with the institution. The party was held at the Savery Hotel. New members of the 20-year club honored at the affair were: Harold Winder, cashier; Cliff Larson, assistant cashier; Floyd Madden, head paying teller, and Arthur McClintic, auditor. S io u x C ity N e w s HE Security National Bank enter tained its directors and employes at the Warrior Hotel at a Christmas party last month. An exchange of gifts was held after dinner. A dra matic sketch and community singing were other features of the program. President C. R. Gossett was host and Cashier R. E. Brown presided as toast master. T president, welcomed the group. Among those present were G. F. Silknitter, D. A. Noble, C. R. McKenna and B. L. Sifford, members of the board of di rectors. Mr. and Mrs. Carl Fredrickson re cently returned from a three weeks’ trip to Hollywood Beach, Florida, where they were attending the annual meeting of the Financial Advertisers Association. They also took a side trip to Havana. Employes and executives of the Woodbury County Savings Bank at 89 tended a Christmas dinner at the Jackson Hotel. M. C. Eidsmoe, presi dent, welcomed those attending. Chair man of the program was A. I). Blenderman, assistant cashier. Lawrence Oemig was in charge of the entertain ment committee. Mrs. Margaret Bax ter led singing of Christmas carols and dancing occupied the later hours after gifts were exchanged. Me, Too! Arithmetic Teacher: Jimmy, if you had $2 in one pocket and $3 in an other, what would you have? Jimmy: Somebody else’s pants on. n Im i ir [III u ( H I h PH \l \ IItlit Ail11 J[It Jill A ■” ■ O TTU M W A, IOWA Member of Federal Reserve System Statement of Condition as of December 3 1, 1948 RESOURCES Executives and employes of the Toy National Bank, the Farmers Loan and Trust Company and affiliated hanks at Anthon, Alta, Marcus and Remsen at tended a Christmas party at the Mayfair Hotel. Conrad Aronson, assistant cashier of the Toy hank, was toastmas ter, and R. R. Brubacher, president, extended greetings. Program features included music by East High School pupils, a skit and interviews with Santa Claus. Loans and Discounts..................................................................... $ 4,834,541.96 .......................................... 89,000.00 Bank Building .............................................................................. .......................................... 25,738.65 Furniture and Fixtures................................................................. .......................................... 30,000.00 Stock in Federal Reserve Bank.................................................. .......................................... 2,812.38 Overdrafts ...................................................................................... U. S. Bonds............................................................$4,084,038.64 U. S. A gency Bonds........................................... 400,189.71 Municipal Bonds ................................................ 1,765,501.85 Other Marketable Bonds................................... 268,748.97 10,518,763.08 Cash and Exchange........................................... 4,000,283.91 Santa Claus distributed gifts to ex ecutives and employes of the Live Stock National Bank after a dinner at the Jackson Hotel. Malcolm Erickson, paying teller, was toastmaster for the dinner program. C. L. Fredrickson, Capital .............................................................................................. $ 300,000.00 Surplus .............................................................................................. 700,000.00 Undivided Profits ............................................................................ 174,909.42 Dividend Payable January 3, 1949............................................ 15,000.00 Deposits ............................................................................................ 14,310,946.65 $15,500,856.07 LIABILITIES $15,500,856.07 D IR E C T O R S J. H . A N D E R S O N S. S. B A R K E R C. C. C O U P L A N D C. P . G L E N N M E R R IL L G IL M O R E T. J. M A D D E N I O W A •L ITH O G R A P H IN G •C O A \P A N Y FOUNDED BY CEOR.GE H RAGSDALE • • EDWIN G. RAGSDALE »• SECRETARY 515 TWENTY EIGHTH STREET C. G. M E R R IL L H . L. P O L IN G H . L. P O L L A R D N. F. R EE D F R A N K VO N SCHRADER M A X V O N SC H R A D E R O FF IC E R S M A X V O N S C H R A D E R . President C L A R E N C E P. G L E N N , V ice President C. G. M E R R IL L , V . P. and Trust Officer J. C. B L A C K F O R D , V ice President W . C. M IL L E R , Assistant Cashier F R A N K M . P O L L A R D , V . P. and Cashier G EORGE H A L L E R . Assistant Cashier Southern Iowa's Largest Bank D E S ■M O I N E S M em b er F ed era l D e p o s it Insu ra nce C orporation Q U A L I T Y - E X P E R I E N C E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • S E R V I C E N o r t h w e s t e r n Banke r, J a n u a r y , 1949 90 Iowa News A n n u a l C h r is t m a s C a r li/ BANKS handle addressing oi Statements, Envelopes, and other forms from 10 to 50 times faster than typewriter or hand methods and with assurance of 100% The above picture was taken at the annual Christmas party of the Live Stock National Bank of Sioux City, Iowa. Directors, officers and members of the staff attended the yearly holiday affair at the Jackson Hotel at which time that vener able old gent, Santa Claus, made an appearance after dinner to distribute gifts to those present. AC CU R AC Y AND LEGIBILITY 9M )SLA ÍÍ£f£Ü JL H u r d T im O f C u r l i e r TìhJthodiu e s T o k e n s O e p r e s s io n NE hundred and ten years ago times were so hard that the na O tion’s coin disappeared into the pro Addressograph Sales Agency verbial sock. This financial panic dur ing the presidency of Andrew Jackson resulted in a veritable flood of pri vate coined tokens. These tokens were issued by indi O M AHA — DES MOINES DAVENPORT rjfiw / ieeià ' in S ffie c to / ffe fr w c e P jßartÄ T 'tu f C en t r a l Na t io n a l B a n k IN C H I C A G O ROOSEVELT R O A D AT HALSTED STREET Member Federal Deposit Insurance Corporation ___________ . _________________ N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 9 Member Federal Reserve System ^ H o r n _______ viduals who wished to supply the country with the much needed small change, and also to state publicly their personal political opinions. Many of these tokens are still in existence and among collectors they are known as “hard times tokens” or “Jackson cents.” There are several hundred varieties, mostly struck in copper and about the size of our 25 cent piece. They were issued from 1837 to 1841. The inscriptions they bear are prob- Iowa News ably the most satirical and slanderous ever placed on coins. On many tokens bitter political propaganda was accom panied by pictures of pigs, mules, and turtles, to symbolize the issuer’s opin ion of the opposite party. Others bear pointed references to the currency question which was then a political football. Today these necessity tokens are popular among collectors. Although there are many rare varieties, a fairly comprehensive collection c a n be formed by the collector of moderate means.—By Stuart Mosher, Editor of The Numismatist. N A TIO N A L BANK OF BURLINGTON BURLINGTON, IOWA Statement of Condition, December 31, 1948 ASSETS Cash and Due from Banks----- $ 3.008,250.66 U. S. Government Securities.. 2,765,046.43 State, County and Municipal Other Bonds ...... - ......... .... Loans and Discounts............. Overdrafts ............. - ........... Stock in Federal Reserve Bank Bank Building ______ ____ _ Furniture and Fixtures.......... Other Assets _______ _____ 1,544,241.10 545,649.51 3,160,357.95 1,032.75 15,000.00 36,504.00 27,316.85 319.90 Total ........................... $11,103,719.15 John H. Witte, Jr., President Vincent P. Cullen, Executive Vice President LIABILITIES Capital Stock ................... Surplus ............................ Simplified banking by mail. T im e -savin g convenience fo r c u sto m e rs...fo r you. H a n d le in slack periods, reduce er rors. Depo sit slip bears post m ark , . . exclusive patented fla p protects contents. In desired p apers a n d colors. W rite fo r sam p les a n d prices. H b n s io n En v e lo pe Co » ^ N ew York 14, N. Y. M inn eapolis !, Minn. St. louts 10, Mo. Des M oines 14, Iow a Kansas City 8, M o. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 200.000.00 300,000.00 182,083.76 Reserves ........................... Interest Collected but Not 45,690.10 Deposits ........................... 10,359,820.14 16,125.15 Total .......................... .$11,103,719.15 Thomas L. Dyer, Cashier F. J. Norton, R. K. Pearson, E. L. Hausknecht. Asst. Cashiers. Member Federal Deposit Insurance Corporation D E P O S IT -B Y -M A IL .$ 91 92 Iowa News T im e W a sted Farmers State Savings Bank INDEPENDENCE, IOWA Larry: What’s the matter; you look disgusted? Harry: Played hookey all day be fore I realized it was Saturday. Statement of Condition, December 31, 1948 RESOURCES Cash and Due from Ba nk s. . Loans and Discounts............... Fir st Real Estate Mortgages U. S. Government Bonds. . . Municipal Securities ............ Bank Premises Owned............ Furniture and Fixtures. . . . Overdrafts ................................... $ 1 ,0 9 1 ,3 6 5 .5 0 1,1 2 1 ,1 0 3 .7 9 439,3 3 0 .4 4 2 ,8 8 4 ,4 2 1 ,12 2 1 6 ,6 9 4 .7 4 3 ,8 4 0 .0 0 12,7 6 6 .6 7 402.87 $ 5 ,7 6 9 ,9 2 5 .1 3 LIA BILITIES Capital Stock (Common) Surplus ................................... Undivided Profits ............ D e p o s i t s .................................... $ 100,000.00 1 5 0 ,0 0 0 .0 0 7 9 ,2 7 7 .4 3 5 ,4 4 0 ,6 4 7 .7 0 $ 5 ,7 6 9 ,9 2 5 .1 3 28 Y e a rs o f C o n tin u o u s S e r v ic e E. F. Sorg, President E. E. Everett, Vice President O FFIC ER S C. L. Fiester, Vice President P. E. Sorg, Cashier Member Federal Deposit Insurance Corporation C O N V E N T IO N S January 24-25, Iowa Mortgage Bankers Association, Des Moines, Hotel Kirkwood. February 7-9, A.B.A. Mid-Winter Trust Conference, New York City, Wal dorf-Astoria. February 11-12, 10th Annual Confer ence, Minnesota Bankers Associa tion, University of Minnesota. February 12, Group One, Iowa Bank ers Association, Sioux City, Mar tin Hotel. February 22, Group 11, Iowa Bankers Association, Burlington, Hotel Burlington. March 20-22, Annual Convention, In dependent Bankers Association, Biloxi, Mississippi, Buena Yista Hotel. STATEMENT OF CONDITION December 31, 1948 RESOURCES Cash and Due from Banks.......... Loans and Discounts..................... Bonds: U. S. Governments ............... Federal Land Banks ............. Municipals ............................... Other Marketable Securities .............................$ 3,752,568.82 ............................. 3,107,675.59 $5,980,198.23 311,556.69 956,346.44 862,315.96 8,110,417.32 Stock in Federal Reserve Bank..................................................................... Banking House ................................................................................................. Furniture and Fixtures .................................................................................. Accrued Interest .............................................................................................. Overdrafts ................................................................................................ Other Resources ................................................................................................ 18,600.00 34,362.50 8,812.14 67,357.28 2,142.52 3,800.17 $15,105,736.34 LIABILITIES Capital ....................................................................... Surplus ...................................................................... Undivided Profits .................................................... Reserve for Taxes, Interest, Contingencies, etc.. Discount Collected but not Earned......................................................... Deposits: Demand .........................................................................$9,515,859.90 Time ............................................................................. 4,425,090.18 U. S. Government War Loan Account..................... 247,422.38 .$ 400,000.00 220,000.00 145,799.74 116,508.29 35,055.85 14,188,372.46 $15,105,736.34 BANK NATI0NÁL F I F TH AVENUE S O U T H - 226* eY L & n Y c n , ¡9 cn v a - Member of The Federal Deposit Insurance Corporation, Washington, D. C. $5,000 — Maximum Insurance for Each Depositor — $5,000 May 6-7, Annual Convention, South Dakota Bankers Association, Ab erdeen, Alonzo Ward Hotel. May 9-11, Annual Meeting, Missouri Bankers Association, Kansas City, Hotel Muehlebach. May 18-20, Annual Meeting, Kansas Bankers Association, Kansas City, Missouri. June 8-9, Annual Convention, Minne sota Bankers Association, St. Paul, Hotel St. Paul. June 13-17, 47th Annual Convention, American Institute of Banking, Portland, Oregon. June 17-18, Annual Convention, North Dakota Bankers Association, Mi not, Clarence Parker Hotel. June 20-22, 53rd Annual Convention, Wisconsin Bankers Association, Milwaukee, Schroeder Hotel. October 11-12, Annual Convention, Nebraska Bankers Association, Lincoln, Hotel Cornhusker. October 17, 18, 19, 63rd Annual Con vention, Iowa Bankers Associa tion, Des Moines, Hotel Fort Des Moines. October 30-November 2, 75th Annual Convention, American Bankers Association, San Francisco. (Con vention headquarters to be an nounced later. JScttîfccTs of IOWA — SOUTH DAKOTA — NEBRASKA Y ¥ ** T IP T ^J — to our Annual M eeting o f G R O U P I , the Iowa Bankers Association, to be held in Sioux City, Martin H otel, February 12. V* THE T OY NAT I ONAL BANK S IO U X C I T Y — M em ber Federal Deposit Insurance Corporation N o r t h w e s t e r n Banker, J a n u a r y , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1949 93 o L, L a M o n te, G eo rg e and S o n ................................ 3 L iv e S to c k N a tio n a l B a n k — C h i c a g o ... 29 L iv e S tock N a tio n a l B a n k — O m a h a . . .3 4 -3 5 L iv e S to c k N a tio n a l B a n k — S io u x C i t y . 68 IN D E X OF A D V E R T IS E R S M J A N U A R Y , 1949 A A d d r e s s o g r a p h S ales A g e n c y ......................... 90 A lle n W a le s A d d in g M ach in e C o r p o r a tion ............................................................................ 18 A llie d M u tu a l C a s u a lty C o m p a n y ............ 59 A llv n , A . C., and C o m p a n y ............................. 54 A m e r ic a n E x p r e s s C o m p a n y ........................... 37 A m e r ic a n N a tio n a l B a n k and T r u st C o m p a n y — C h ic a g o ....................................... 40 A m e r ic a n T r u s t an d S a v in g s B a n k — ■ D u b u q u e .................................................................. 93 B B a k e r H o te l ................... B a n k o f A m e r ic a ................................................... B a n k o f M a n h a t t a n .............................................. B a n k o f M o n t r e a l................................................. B a n k e r s R u b b e r S t a m p ..................................... B a n k e r s S e rv ice Co., In c .................................. B a n k e r s T r u s t C o m p a n y — D es M o i n e s .. B a n k s, W ill ia m H ., W a r e h o u s e , In c ......... 54 42 49 53 91 43 99 43 M a n u fa c tu r e r s T r u s t C o m p a n y .................... 6 M a r q u e tte N a tio n a l B a n k ................................ 83 M e rc h a n ts M u tu a l B o n d in g C o m p a n y .. 59 M e rc h a n ts .N a tio n a l B a n k ................................ 2 M in n eso ta C o m m e rc ia l M e n ’s A s s o c ia tio n .......................................................... 64 M issis s ip p i V a lle y T r u s t C o m p a n y .......... 46 M o sle r S a fe C o m p a n y ....................................... 7 O m a h a N a tio n a l B a n k ....................................... 27 R R e m in g to n R an d , In c ......................................... R o y a l B a n k of C a n a d a ..................................... 39 8 S St. P a u l M e rc u ry In d e m n ity C o m p a n y . . 56 St. P a u l T e r m in a l W a r e h o u s e C o m p a n y 78 S c a rb o r o u g h an d C o m p a n y .................. 5 7 -7 3 -7 9 S e c u rity N a tio n a l B a n k — S io u x C ity . . . . 87 S tock Y a r d s N a tio n a l B a n k — S ou th St. P a u l ........................................................................... 62 T T e n sio n E n v e lo p e C o r p o r a tio n .................... T o y N a tio n a l B a n k .............................................. N 95 92 U N a tio n a l B a n k o f B u r lin g t o n ...................... 91 N a tio n a l B a n k o f C o m m e r c e ......................... 76 N a tio n a l B a n k o f S ou th D a k o t a ............... 69 N a tio n a l C ash R e g is t e r C o m p a n y ............ 31 N a tio n a l C ity B a n k o f N e w Y o r k ............ 41 N e b r a s k a S ales B o o k C o m p a n y ................. 75 N e w Y o r k T r u s t C o m p a n y ........................... 47 N o r th e rn T r u s t C o m p a n y ............ : ................. 67 N o r th w e s t S e c u rity N a tio n a l B a n k .......... 70 N o r th w e s te r n N a tio n a l B a n k ..........'........... 60 U n ion B a n k an d T r u s t C o m p a n y — O ttu m w a ............................................................... U n ite d S ta tes N a tio n a l B a n k — O m a h a .. 89 72 V V a lle y B a n k and T r u s t C o m p a n y ............... 81 W W a lt e r s , C h a rle s E ., C o m p a n y . . .................. 75 W e s te r n M u tu a l F ir e In su ra n c e C o m p a n y ............................................................... 58 W h e e lo c k and C u m m in s .................................. 52 C C a lifo r n ia B a n k ................................................... C e n tra l H a n o v e r B a n k an d T r u s t C o ... C e n tra l N a tio n a l B a n k in C h ic a g o .......... C e n tr a l N a tio n a l B a n k an d T r u s t C o.— D e s M oin es .......................................................... C e n tr a l S ta te s M u tu a l In su ra n c e A s s o c ia tio n .................................................................... C h a se N a tio n a l B a n k .......................................... C h e m ic a l B a n k and T r u s t C o m p a n y . . . . C ity N a tio n a l B a n k — C lin t o n ...................... C ity N a tio n a l B a n k and T r u s t C o m p a n y — C h ic a g o ............................................................ C ity N a tio n a l B a n k and T r u s t C o m p a n y — K a n s a s C ity ................................................... C o m m e rc e T r u s t C o m p a n y ............................. C o n tin e n ta l Illin o is N a tio n a l B a n k and T r u s t C o m p a n y ................................................. C o n tin e n ta l N a tio n a l B a n k — L in c o ln . . . C r o c k e r F ir s t N a tio n a l B a n k o f San F r a n c i s c o ............................................................... 33 4( 90 58 11 91 92 36 86 88 50 75 44 F 92 56 66 9 77 63 74 78 48 65 82 45 G 32 H H a ls e y , S tu a rt an d C o m p a n y , In c .............. «Harris T r u s t and S a v in g s B a n k ................. H o lle y , D a y to n & G e r n o n .............................. H o llin b e c k S ta m p and Coin C o ................... H o m e F e d e r a l S a v in g s and L oan A s s o c ia tio n ........................................................... H o m e In su ra n c e C o m p a n y .............................. 55 10 53 90 52 5 I In t e r -S t a t e N a tio n a l B a n k ............................. 74 I o w a -D e s M o in e s N a tio n a l B a n k ................ 100 Io w a L ith o g r a p h in g C o m p a n y .................... 89 I r v in g T r u s t C o m p a n y . . .•............ 12 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Incorporated 1912 STATEMENT OF CONDITION, DECEMBER 31, 1948 RESOURCES Cash and Due from Banks............$ 5,119,380.82 U. S. Government Bonds. 9,948,926.09 Federal Reserve Bank Stock. 18,000.00 State, County and Municipal Bonds ................................... 815,868.72 Corporate Bonds ................... 95,705.02 Loans and Discounts..................... 4,292,147.05 Overdrafts ....................................... 348.11 50,000.00 Bank Building ............................... Other Assets ................................... 65.78 LIABILITIES Capital Stock Surplus .............. Undivided Profits Reserves ............ Deposits: Demand ........ .$10,456,583.52 Time .............. . 8,605,011.00 U. S. Gov. War Loan A cct.................. 358,960.93 250.000. 00 350.000. 00 194,886.14 125.000. 00 19,420,555.45 $20,340,441.59 OFFICERS C. J. SCHRUP, Chairman of the Board D. W. ERNST, President ROY F. GLAB, First Vice President C. .T. KLEINSCHMIDT, Vice President A. L. VOGL. Vice President and Cashier N. J. GRETEMAN. Vice President M. J BAUMHOVER, Assistant Cashier MERLYN B. KURT, Assistant Cashier •T. L. RILEY, Assistant Cashier I. L. KIELER. Assistant Cashier HARLAN MELCHIOR, JR., Assistant Cashier DIRECTORS C. J. SCHRUP, Chairman D. B. CASSAT I>. W. ERNST ROY F. GLAB W. N. GLAB OTTO F. HENKER Member Federal Reserve System Member Federal Deposit Insurance Corporation Manufacturers of BUSINESS CALENDARS 12 Sheets Memorandum Advertising Specialties Apron System • Bank Supplies Send for copy of Dalton's Chattel Mortgage T he Dalton P ress Quality Printing Since 1891 MANSON, IOWA K K o c h B r o th e rs ......................................................... Organized 1905 $20,340,441.59 D a lto n P re ss, T h e ................................................. 93 D a v e n p o r t B a n k an d T r u s t C o m p a n y .. 85 D a v e n p o rt. F . E ., and C o m p a n y ............ 7 7-87 D e L u x e C h eck P rin te rs, In c ........................ 55 D e s M oin e s B u ild in g , L oan and S a v in g s A s s o c ia tio n ........................................................... 86 D o a n e A g r ic u ltu r a l S e rv ice. In c ................. 38 D r o v e r s N a tio n a l B a n k ..................................... 80 G u a r a n ty T r u s t C o m p a n y ................................ D U B U Q U E , IO W A 16 I) F arm ers S ta te S a v in g s B a n k — In d e p en d en ce ............................................................... F ederal H om e Loan Bank of D es M oin e s .................................................................... F ir s t and A m e r ic a n N a tio n a l B a n k . . . . F ir s t N a tio n a l B a n k — C h ic a g o ................... F ir s t N a tio n a l B a n k — L in c o ln .................... F ir s t N a tio n a l B a n k — M in n e a p o lis ......... F ir s t N a tio n a l B a n k — O m a h a ...................... F ir s t N a tio n a l B a n k — St. J o s e p h .............. F ir s t N a tio n a l B a n k — St. L o u i s ................. F ir s t N a tio n a l B a n k — St. P a u l ................... F ir s t N a tio n a l B a n k — S io u x C i t y ............ F ir s t W is c o n s in N a tio n a l B a n k ................. American Trust & Savings Bank 90 N o r t h w e s t e r n Ba nker, J a n u a r y , 1949 In the DIRECTOR’S ROOM Fhe Very Idea Mixed Feelings “ Mary,” admonished the mother who objected to her daughter’s tomboyish antics, “don’t you think you are get ting too big to play with boys?” “ Oh, no, Mother!” exclaimed the daughter frankly. “ The bigger I get the better I like ’em!” “Yes, I broke my engagement. My feelings are changed completely from what they were when I accepted him.” “ But why do you still wear the ring?” “ Oh, my feelings toward the ring are just the same.” No Comment “What shall I peroxide blondes fuss at the game Editor: “Why, ers went wild.” say about the two who made such a last night?” just say the bleach Oh You Fussbudget! “ 1 should be very happy, because I’m married to the type of girl I wanted. “ She is a marvel of physical perfec tion. We have been married three years and never once have I seen her hair disarranged or her gown un tidy. Her hands are ever white and smooth. Marvelously manicured nails gleam when she extends her finger tips in greeting. Her teeth are rows of white pearls. Her complexion would shame any school girl. She’s wonderful! Her immaculate appear ance is a source of never-ending joy to me. “ But I’m getting tired of eating in restaurants!” Candor Surgeon: you would per week. Patient: automobile. Surgeon: Here is my bill. I wish pay $100 down and $25 Sounds like buying an I am. Salesmanship ? Uncle: Have you a dime bank, Willie? Willie: No, but I have a billfold. The Best Teacher “ What takes a lot of experience?” “For a girl to kiss like a beginner.” Christmas Casualty Naturally Not A woman arrived for the wedding late. As she came rushing up to the door, an usher approached her for her invitation. “ I have none,” she snapped. “ Are you a friend of the groom?” asked the usher. “Certainly not!” the woman replied. “ I’m the bride’s mother.” How About Douse? If more than one mouse is mice, And more than one louse is lice, Then you must agree, Obviously, That more than one spouse is spice. Just in Passing Which reminds us of an appropriate typographical error committed by an insurance trade journal in a “Barom eter of Coverages” : Ordinary Life—Excellent: Term—Fair; Annuities—oGod. N o r t h w e s t e r n Banker, J a n u a r y , 1949 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “There you are, my dear,” the bride announced, “my first turkey.” She proudly placed the steaming bird on the dinner table. “ It looks wonderful, darling!” her husband responded. “What did you stuff it with?” “ Stuff it?” exclaimed the bride. “ Why, dear, this one wasn’t hollow!” College Education You learn more and more about less and less till finally you know everything about nothing. Fancy Names Witness: He said that you were a sculptor but that you should wash more often. Attorney: Give me his exact words. Witness: Well, he said that you were a dirty chiseler. Then Bury It! Young I’d send Young my own Husband: This pie is burnt. it back to the bakery. Wife: I didn’t buy it. It’s cremation. Wrong Direction Little Old Lady (poking driver with umbrella): Is that the First National Bank? Bus Driver: No, ma’am. That’s my stomach. Quick-Change Little Girl (whispering to mother at wedding): Did the lady change her mind? Mother: Why, no, dear. Why do you ask? Little Girl: ’Cause she went up the aisle with one man and came down with another. Identification One Lawyer (to another during a trial): And so are you a liar. Judge: And now if these gentlemen are through identifying each other, we’ll proceed with the case. Company A thirsty man wandered into the bar and ordered a dry Martini cock tail. He drank it with relish, and remarked that it was the best he had ever tasted. The bartender whipped up another, and the customer declared it was even better than the first. “ Such genius deserves reward,” he said, swaying slightly. He reached into his pocket and produced a live lobster. “ Here! Take this with my compliments,” he said. The bartender held the lobster gin gerly at arm’s length. “Thanks,” he said dubiously, “ I suppose I can take it home for dinner.” “No, no,” objected the customer “ he’s already had his dinner. Take him to a movie.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis nr D 1 K i t Q U ü i 1 Des M oines * Iow a DIRECTORS PAUL BEER President, STATEMENT OF CONDITION The F lyn n D airy Co. THOS. A. BURCHAM, M .D. December 31, 1948 Radiologist F. W. HUBBELL Pres., Equitable L ife Ins. C o. of Iowa RESOURCES Loans and D i s c o u n t s ................................. E. J. LIN D H A RD T $ 1 5 ,6 5 4 ,8 8 7 .0 4 S e c u r i t i e s .............................................. 5 0 9 .0 0 1 .0 0 Municipal B o n d s .............................................. 1 ,3 1 4 ,3 8 2 .9 0 Other Stock in Federal Reserve Bank President, National B y-P rodu cts, Die. S. F. McGINN V . P ., Tangney M cG in n H otels E. T. M ERED ITH , Jr . V . P ., M eredith Publishing C o. 6 0 ,0 0 0 .0 0 SHIRLEY PERCIVAL Furniture and F i x t u r e s ................................. 1 0 8 .7 8 9 .0 0 RUSSELL REEL U. S. Government Bonds $ 2 7 ,9 7 9 ,5 6 2 .7 7 Cash and Exchange . 1 6 ,5 8 9 ,5 5 2 .7 5 Customers’ Liability on Letters o f Credit and Trade Acceptances Pres., Green Colonial Furnace C o. President, Yellow Cab C o. 4 4 ,5 6 9 ,1 1 5 .5 2 W ILLIAM F. RILEY A ttorn ey 5 ,7 5 0 .0 0 R. R. ROLLINS Real Estate and In vestm ents $ 6 2 ,2 2 1 ,9 2 5 .4 6 J. F. ROSENFIELD Chairman of Board, Younker B ros., Inc. JOHN D. SHULER LIABILITIES Capital (Com m on Stock) President, Shuler Coal C o. $ 1, 000,000.00 S u r p l u s ..................................................... 1, 000, 000.00 Undivided P r o f i t s ................................. 1, 000, 000.00 Reserve for Contingencies 1, 000,000.00 Other R e s e r v e s ................................. Reserve for Taxes and Interest D e p o s i t s ................................................ Bank’s Liability on Letters o f Credit and Trade Acceptances 1 0 4 ,9 1 9 .3 0 1 2 4 ,8 7 9 .3 4 5 7 ,9 8 6 ,3 7 6 .8 2 J. W . HUBBELL President S. C. PIDGEON E xecu tive Vice President OTHER OFFICERS C. W. MESMER G. A. MOECKLY Vice President Vice President F. C. ATKINS Vice Pres, and Cashier A. F. ERICKSON Assistant Cashier 5 ,7 5 0 .0 0 $ 6 2 ,2 2 1 ,9 2 5 .4 6 L . NEVIN LEE V ice President J. B. MONAHAN F. S. LOCKWOOD Assistant Cashier V . P . and Trust Officer Member Federal Deposit Insurance Corporation • W M. ELLISON S. G. BARNARD Vice President Assistant Secretary Member Federal Reserve System STATEMENT OF CONDITION As of December 31, 1948 RESOURCES Cash and Due from Banks............................$ 39,107,176.94 *U . S. Government Securities...................... 45,185,594.82 State, County and Municipal Securities......... 3,468,957.82 Federal Reserve Bank S to c k .......................... 150,000.00 Other Bonds and Securities.......................... 1,241,555.06 Loans and Discounts................................... 24,785,674.27 Interest Earned but N o t Collected................ 268,614.15 Bank Premises ........................................... 933,500.00 Furniture, Fixtures and V au lts...................... 1.00 Overdrafts ................................................ 46.72 Customers Liability on Letters of Credit and Acceptances ........................................ 31,852.13 $ 1 15 ,172,972.9! LIABILITIES Capital Stock— C o m m o n ............................. $ Surplus ..................................................... Undivided Profits ...................................... General Reserves ........................................ 2,500,000.00 2,500,000.00 692,175.04 272,000.00 $ 5,964,175 04 Reserve for Interest,Taxes &Other Expenses Interest Collected but N ot Earned................. Bank Liability on Letters of Credit and Acceptances ...................................... Deposits .................................................... 201,275.35 113,807.04 31,852.13 108,861,863.35 $115,172,972.91 *$10,457,361.71 U. S. Government Securities Pledged to Secure Public Funds, Trust Department Funds and War Loan Deposit Account. A Strong, Dependable Correspondent Connection I 0WA- DES MOI NES NATIONAL BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation
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