Full text of The Northwestern Banker : January 1950, 55th Year, No. 750

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JAN U ARY
1 »5 0

The Outlook
For Business
Is Good—P a g e 19


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Federal Reserve Bank of St. Louis

M IS S A M E R IC A O F 1950

STATEMENT OF CONDITION
December 31, 1949
RESOURCES
Loans and Discounts............................ $11,924,647.21
United States Government Securities 29,331,500.00
State, County, and Municipal Bonds 19,783,284.83
Other Bonds ........................................
836,240.09
Overdrafts ............................................
3.00
Bank Premises ....................................
811,330.62
Cash on Hand, Due from Banks
and U. S. Treasurer....................... 22,682,650.57

í,nf i

hä

$85,369,656.32
LIABILITIES
Capital S t o c k ........................................$
500,000.00
Surplus ..................................................
4,200,000.00
Undivided Profits ................................
454,095.16
Deposits ................................................ 80,215,561.16

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YOU ARE INVITED to hear The Merchants
National Hour over WMT, 9 to 10 each Sunday
evening . . . an outstanding production used
to promote banking in Iowa.

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G ran t W ood

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"‘When you hear the phrase "typically American’,
what do you think of first? . . .
“ Is it the rolling land . . . the pig­
tailed little girl next door . . . the
whirling factories . . . the bountiful
stores . . . the ninth inning of the
hometown game . . . the banker work­
ing at bis desk? O f course ‘typically
American’ is a vast panorama of
scenes that combine to reflect the
wealthiest, freest nation on earth.

working at the heart of every business
venture . . . ceaselessly striving to as­
sure security and prosperity for his
customers.
That’ s why it’ s wise to
know your local banker . . . he’ s on
your side . . . genuinely interested
in helping your progress under the
American system of individual oppor­
tunity. Visit your hanker this week
. . . you’ ll find him a good man to
know.”

“ In the American scene you’ll nearly
always find the local banker.
He’ s

Quoted from “ The Merchants National Hour” Dec. 18, 1949

Merchants National

THE

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M em ber Federal

No. 750.

A

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BANK

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D eposit Insurance Corporation

Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription
$3.00 per year. Entered as Second Class M atter January 1, 1895, at the Post Office at Des Moines, Iowa, under A c t of March 3, 1879.

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Federal Reserve Bank of St. Louis

and for many years he held meetings at
his home. Two famous Quakers, William
Penn and George Fox, were guests there.
So many gathered to hear the latter that he

and banished from the coun­
try because of his allegiance to the
“ abominable sect called Quakers,” John

I

m p r is o n e d

was obliged to conduct his services out of
doors under the sheltering branches of two
huge oaks which afterwards came to be
known as the “ Fox Oaks.”

Bowne steadfastly refused to act contrary to
his conscience. His earnest pleas for toler­
ance won the first official proclamation of
religious freedom in America outside of
Maryland.

For a number of generations Bowne’s
home remained in the possession of his

The Quakers held forbidden meetings in this kitchen
where they sat on ro ws o f benches before the fireplace

Migrating to this country from his native
England, John Bowne eventually settled in
Flushing, Long Island, in 1651. With his
wife Hannah he roamed through the woods
selecting timber for their home which he
built in 1661 and which reflected his posi­
tion as a prosperous farmer. The house is
still standing. Now a part of Greater New
York, the farm was bought by Bowne from
the Indians for eight strings of wampum
valued at about fourteen dollars.
It was Hannah Bowne who first became a
member of the Friends. Then out of curi­
osity John attended one of their meetings
which had to be held in the woods because
of the violent opposition to the sect. He was
so much impressed by the beauty and sim­
plicity of their faith that he allied himself
with the group, invited them to meet at his
house thereafter, and soon became one of
their leaders.

descendants. It is now maintained by the
Bowne House Historical Society as a shrine
to freedom and tolerance.

As a result, Bowne was thrown into a
dungeon at Fort Amsterdam, was kept in
solitary confinement on a bread-and-water
diet, and ordered to pay a fine, but he re­
fused to do so or to renounce his beliefs.
Because of his “ contempt of the authori­
ties,” he was deported to Holland. How­
ever, the Amsterdam Chamber of the West
India Company in whose hands his case
was put, released him, finding him a dis­
creet man and steadfast in his religion.

as long as he does not disturb
others or the government.” This
official statement ended the perse­

Moreover, they wrote a firm letter to the

cution of the Quakers.

officials here: “ Let everyone be unmolested
as long as he is modest, as long as his con­
duct in a political sense is unimpeachable,

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Federal Reserve Bank of St. Louis

The

Home,

brokers,

is

protector

of

through

Am erica's
American

its

agents

leading
homes

and

insurance
and

the

homes o f American industry.
Portrait o f George Fox hangs beside an
early 18th century highboy in dining room

By the time Bowne at last
reached home, the province had
passed into British jurisdiction

ft THE H O M E ☆
Home Office: 59 Maiden Lane, New York 8, N. Y.
FI RE

•

AUTOMOBILE

•

MA R I NE

The H om e Indemnity C om pany, an affiliate, writes
Casualty Insurance, Fidelity and Surety Bonds
C o p y r ig h t 1 9 5 0 , T h e H o m e I n s u r a n c e C o m p a n y

4

CENTRAL
B A N K

A N D

T R U S T
NEW

TRUSTEES

HANOVER
C O M P A N Y

YORK

Statement of Condition, December 31, 1949

GEORGE W . D A V IS O N
Honorary Chairman

W . A. M. BURDEN

ASSETS

W . A . M . Burden & Co.

LOUIS S. CATES
Chairman of the Board
Phelps Dodge Corporation

C O LB Y M. CHESTER
Honorary Chairman
General Foods Corporation

Cash and Due from Ranks

4 2 4,355>883-3 2

U. S. Government Securities . . .

63 6>35L3t i -45

State and Municipal Securities .

53>387>763-9 i

Other S e c u ritie s...................................

i3>968>328-29

J O H N B. C LAR K
President, The Clark Thread Co,

JA R V IS CRO M W ELL
President
William Iselin & Company, Inc,

B E R N A R D M. CULVER
Chairman of the Board
America Fore Insurance Group

J O H N S T O N DE FOREST
Attorney

T H O M A S D IC K S O N
President
Berlin and Jones Company, Inc.

W A LTE R G . D U N N IN G T O N
Attorney
Dunnington, Bartholow and M iller

W IL L IA M

a

.

Loans and Bills Purchased.......................
Real Estate Mortgages .

.

.

.

.

443>6 i i >932-35

.

2,362,411-95

Banking H o u s e s ........................................

10 , 150 , 009.00

Interest A ccru e d ........................................

3>7I7>443-7°

Customers’ Liability on
Acceptances Outstanding

4 , 480,386 . 9°

.

.

.

.
Total

e l d r id g e

^ 1 , 592 ,385 , 470.87

Vice President

W IL L IA M F. C. E W IN G
Executive Vice President
Alexander Smith and Sons Carpet Co,

W IL L IA M S. G R A Y
President

FRED H. H A G G E R SO N
President
Union Carbide and Carbon Corporation

C. JAR E D INGERSOLL
Chairman o f the Board
Kansas, Oklahoma and G ulf Kailway Co.

K . T . KELLER

LIA BILITIES
C a p i t a l........................................ $ 2 1 ,000 ,000.00
S u r p lu s........................................

90,000 ,000.00

Undivided Profits.

22 , 192 , 794.07

. . . »

i33A9 2 >794-07

Reserves:

President, Chrysler Corporation

GE OR GE M. M OFFETT
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.

A U G U STE G. P R A T T
Chairman of the Board
The Babcock and Wilcox Company

G W IL Y M A PRICE
President
Westinghouse Electric Corporation

Taxes, Interest, etc.

.

.

.

.

.

.

.

.

4 , 980,012.28

Dividend:
Payable January 3 , 1 9 5 0 .............................
A c c e p t a n c e s .............................

$7 , 347 , 443.16

In Portfolio.............................

2 , 286, 113.7 4

1 ,050 , 000.00
5 ,0 6 1 ,329.42

D e p o s i t s ..................................................................... 1 , 448, 1 0 1 ,335.10
Total

LUCIUS F. R O B IN S O N , JR.

$ 1 , 592 ,385 , 470.87

Attorney
Robinson, Robinson and Cole

J O H N P. STEVENS, JR.

There are pledged to secure public monies and to qualify for fiduciary powers

President, J. P. Stevens & Co., Inc.

H E N R Y P. TU RN B U LL

U . S. Government S e c u r i t i e s ................................. $ 5 2 ,9 1 5 ,7 7 2 .7 2

Montclair, N ew Jersey

W ILLIA M W O O D W A R D
N ew York, N. Y,

N o r t h w e s t e r n Banker , J a n u a r y , Ì 9 5 0


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Federal Reserve Bank of St. Louis

M EM BER

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

5

CONSIDER YOUR CHECKS


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Federal Reserve Bank of St. Louis

from every angle

Preparation of your checks, because

their over-all quality your checks should

of their important function, demands

give you pride in sponsoring them.

careful and detailed consideration.

A clear indication that La Monte Safety

The safety paper you select must meet

Papers embody all these desirable at­

exacting standards. Maximum protec­

tributes is found in this fact: They are

tion, superior writing surface and fine

the choice of America’ s leading hanks

appearance are all important. And in

by a large majority.

A Check Paper All Your Own
Thousands of banks and many of the larger corporations use La Monte
Safety Papers with their own trade-mark or design made in the paper
itself. Such i n d i v i d u a l i z e d check paper provides maximum protection
against both alteration and counterfeiting —makes identification positive.

THE WAVY LINES ® ARE A LA MONTE TRADE-MARK

Northwest ern

Banker, J a n u a r y ,

1950

6

A BAAKS BUSINESS IS
¿ (/ e ty à â d y s é ttd tk & fJ
aybe

you wonder why a bank publishes

M its financial statement to the public at
large. How many people stop to analyze the
figures or think of all the accomplishments
behind them? Yet when you learn some of the
stories these figures tell, you begin to realize
how important they are . . . to everybody.
Take “Deposits,” for instance. Included in
this figure are not only the cash balances of
large and small businesses, but also the “nest
eggs” of people in all walks of life . . .
money wisely set aside for a home of
their own, a college education, a future
retirement free of financial worry.
Or consider “Loans.” It would be hard
even to estimate the improved equip­
ment this figure helped buy for the

manufacturer or merchandiser . . . the new
products it launched and the expansion it made
possible . . . the jobs it thus created for more
and more workers. Or for that matter —the
family cars it financed, the new roofs it paid
for, the vacation trips it transformed from
dreams to realities.
In myriad ways, you see, banks serve every­
body’s business and help meet the financial
needs of people in every income group. During
its 99th year, the Irving has been serving
more people in more capacities than ever
before . . . and will continue to gear itself
to this pattern of American progress.
Whatever your needs may be, you’ll find
it good business to do your banking at
the Irving Trust Company.

Condensed S tatem en t o f Condition as o f D e cem b er 3 1 , 1 3 4 3
ASSETS

L IA B IL IT IE S

Cash and Due from Banks .

311,035,067

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

U. S. Government Securities .

452,413,721

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

55,000,000

Other Securities........................

11,807,009

Undivided Profits..............

13,005,689

Stock in Federal Reserve Bank

3,150,000

Loans and Discounts

.

381,224,232

First Mortgages on Real Estate

3,753,217

Headquarters Building .

14,280,800

Customers’ Liability

Total Capital Accounts
D e p o s i t s ..........................

.

50,000,000

. $

118,005,689

1,052,448,028

Reserve for Taxes and OtherExpenses
Dividend P a y a b l e .......

2,918,630

1,500,000

Acceptances: Less Amount in

for Acceptances Outstanding
Other A s s e t s ..............................

6,011,678

Portfolio..........................

6,884,569

3,788,799

Other Liabilities..............

5,707,607

$1,187,464,523

$ M 8 7 ,464^523

United States Government Securities are stated at amortized cost. O f these, $ 3 4 ,5 6 0 ,5 2 6 are pledged to secure deposits
of public monies and for other purposes required by law.

IB V IA K ¿T R U S T
IVEW VOI!K
W

illiam

N. E nstrom , Chairman of the Board
M EM B ER

N o r t h w e s t e r n Banker , J a n u a r y ,


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Federal Reserve Bank of St. Louis

1950

FED ERAL

Richard H. W est, President
D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

The First National Bank of Chicago
Statement of Condition December 3 ly 1949

Board of Directors
Edward E. Brown
Chairman of the Board

Leopold E. Block
Chairman, Finance Committee,
Inland Steel Company

Augustus A. Carpenter
Director, Hills-McCanna
Company

A SSE T S
Cash and Due from Banks

560,139,741.25

United States Obligations— Direct and fully Guaranteed
Lnpledged

.

.

.

.

.

$

.

715,904,011.42

Pledged— To Secure Public Deposits and
Deposits Subject to Federal Court Order

196,941,810.00
81,531,004.97

To Secure Trust Deposits

512,000.00

Under Trust Act of Illinois

994.888,826.39
98,869,256.81

Other Bonds and Securities
J. D . Farrington
President, Chicago,
Rock Island and Pacific
Railroad Company

James B. Forgan
Vice-Chairman of the Board

Loans and Discounts

.

.

.

790,957,228.52

.

Real Estate (Bank Building)

2,555,847.71

Federal Reserve Bank Stock

4,350,000.00

Customers’ Liability Account of Acceptances

3,629,255.97

Interest Earned, not Collected .

5,885,554.16

Other Assets

.

.

.

.

.

193,998.88

.

$2,461,469,709.69

Walter M . Heymann
V ice-President

L IA B IL IT IE S
Henry P. I sham
President, Clearing Industrial
District, Inc.

James S. Knowlson
Chairman of the Board
and President,
Stewart-Warner Corp.

Capital Stock
Surplus

.

.
.

.
.

.

.

.

.

.

.

.

.

Other Undivided Profits

.

.

.

$

70,000,000.00
9,290,838.46

.

1,054,446.27

Discount Collected, hut not Earned .

1,500,000.00

Dividends Declared, but Unpaid
Reserve for Taxes, etc.

.

.

.

21,360,092.31

.

4,651,670.99

Liability Account of Acceptances
Homer J. Livingston
V ice-President

Hughston M . Me Bain
Chairman of the Board,
Marshall Field & Company

Time Deposits .
Demand Deposits

.

.
.

.
.

.
.

Deposits of Public Funds .

75,000,000.00

.

.

$

444,771,789.09

.

.

1,641,425,482.72

.

.

192,414,072.58

2,278,611,344.39
1,317.27

Liabilities other than those above stated .

$2,461,469,709.69

Bentley G. McCloud
President

President, Norris Grain Co.

John P. Oleson
Banker

President, A. H. Wetten & Co.

Vice-Chairman,
Quaker Oats Company

Banker

Chairman of the Board.
Standard Oil Company
(Indiana)

Banker

Madison, Wis.

Robert E. Wood

C. J. Whipple

President. International
Minerals & Chemical Corp.
M EM BER

FED ERA L

Wil son & Me LIvaine

Robert E. Wilson
Harry A. Wheeler

George G. Thorp

Louis Ware
Irvin L. Porter

John P. Wilson

Albert 11. Wetten

R. Douglas Stuart
James Norris

D E P O S IT

Chairman of the Board,
Hibbard, Spencer, Bartlett & Co.
IN S U R A N C E

Chairman of the Board,
Sears, Roebuck and Co.

C O R P O R A T IO N

•

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Federal Reserve Bank of St. Louis

•
Northwest ern

Banker, J a n u a r y ,

7950

8

IM II Kl TO HS
ED W IN J. B EIN ECK E
Chairman , T he S perry &
H utchinson C o.
E D G A R S. BLOOM

MANUFACTURERS
TRUST

COMPANY

Chairm an , A tlan tic, G ulf and
West Indies Steam ship Lines
A L V IN G . BRU SH
Chairm an , A m erican H om e
Prodi^cts C orporation

Condensed Statement of Condition as at close of business
December 31, 1949

LOU R . C R A N D A L L
P resid en t, G eorge A . F uller
Com pany
C H A R L E S A . D ANA
Chairman, Dana C orporation

HKSOI HI KS

H O RA CE C . FLA N IG AN
Vice-C hairm an, Board of
D irectors
JOHN M . F R A N K L IN
P resid en t, U n ited S tates Lines
C om pany
P A O L IN O G ERLI
P resid en t, G erli & C o ., Inc.
H A R V E Y D . GIBSON
P resident
F R E D E R IC K G R E T SC H
Chairman, L in coln Savings
Bank
JOH N L. JOH NSTO N
D irector, L am bert C om pany
O SW A L D L. JOH NSTO N
Sim pson T hacher & Bartlett
K E N N E T H F. M ac L EI.LAN

Cash and Due from Banks . . . .

$ 700.693,983.16

U. S. Government Securities .
U. S. Government Insured F. Id. A.
M o r t g a g e s .......................................

1,078,980,290.70
26,923,864.06

State and Municipal Bonds . . . .
Stock of Federal Reserve Bank
Other S e c u r itie s......................

27,576,728.37
3,150,000.00
17.188,332.48

Loans. Bills Purchased and Bankers’
Acceptances......................
M o r t g a g e s ......................
Banking Houses . . . .

557,375,053.18
15.547,912.39
10,550,333.13
457,620.88
6,363,498.13
7,189,157.62

Other Real Estate Equities . . . .
Customers Liability for Acceptances
Accrued Interest and Other Resources

P resid en t, U n ited B iscuit
Com pany o f A m erica

$2,451,996,774.10

JOHN T . M ADDEN
P resid en t, Em igrant Indus­
trial Savings Bank
JOHN I*. M A G U IR E
P resid en t, John P. M aguire &
C o., In c.
C. R . P AL M ER
D irector, C lu ett P ea bod y &
C o ., In c.
G EO RG E J. P A T T E R S O N
P resid en t, S cranton & L ehigh
Coal C o.
W IL L IA M G . R AB E
V ice P resident
H A R O L D C. R IC H A R D

Capital
. . . .
Surplus
. . . .
Undivided Profits .
Reserves for Taxes,

$45,000,000.00
60,000,000.00
31,964.647.94

Unearned Discount, Interest, etc. .
Dividend Payable January 15. 1950 .
Outstanding Acceptances . . . .
Liability as Endorser on Acceptances
and Foreign Bills .
Cash held as Collateral or in Escrow
D eposits......................

Hew York C ity
H A R O L D V . SM ITH
P resid en t, H om e Insurance Co.
E R N E ST

CVAHI CI TI ES

1

136.964,647.94
7,784,963.34
1.350.000.00
6,913,827.34
2,556.734.24
14,678,810.72
2,281,747,790.52
>,451,996,774,10

ST A U F F E N

Chairm an, Trust C om m ittee
Board o f D irectors

U n ited S tates G overn m ent and o th e r secu rities ca rried at $84,599,284.02 are pled g ed to secu re
p u b lic funds and trust dep osits and fo r oth er pu rposes as requ ired or p erm itted b y law.

L. A . V A N BO M E L
P resid en t, N ational Dairy
P roducts C orporation
GUY W. VAUGHAN
Chairman, W right A erona utical
C orporation

Head Office: 55 Broad Street, New York City
«O O F F IC E S IX G R E A T E R N E W Y O R K

H E N R Y C. VON ELM
Chairman, Board o f D irectors
A L B E R T N. W IL L IA M S
P resid en t, W estinghouse
Air Brake Com pany

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

1950

European Representative Office: 1, Cornhill, London, E. C. 3
Member Federal Reserve System
Member New York Clearing House Association
Member F ederaI Deposit Insurance Corporation

9

Harris Trust and Savings Bank
Organized as N. W. Harris & Co. 1882, Incorporated 1907

115 W E ST M ON R OE STREET, C H IC A G O 90
Member Federal Reserve System

•

Member Federal Deposit Insurance Corporation

STATEMENT OF CONDITION
DECEMBER 31, 1949
L IA B IL IT IE S

RESOURCES

$180,789,983.34
Cash on Hand and Due from Banks
2 0 3 , 5 5 6 , 288 . 8 0
U. S. Government Securities
62,753,568.34
State and Municipal Securities
12,840,319.51
Other Bonds and Securities
151,414,487.42
Loans and Discounts
6 9 0 , 0 0 0 .0 0
Federal Reserve Bank Stock
Customers’ Liability on Acceptances and
Letters of Credit
211,714.75
Accrued Interest and Other Resources
2,431,964.58
Bank Premises
1,700,000.00
T O TAL

Capital

$

Surplus

8,000,000.00
15,000,000.00

Undivided Profits

$ 28,173,887.75

5,173,887.75

General Contingency Reserve

7,425,090.00

Reserves for Taxes, Interest, Etc.

3,265,802.42

Dividend Payable January 3, 1950

240,000.00

Acceptances and Letters of Credit

211,714.75

Demand Deposits $507,880,157.90
Time Deposits

577,071,831.82

69,191,673.92

$616,388,326.74

TOTAL ~

$616,388,326.74

United States Government Obligations and Other Securities carried at $71,163,829 are pledged
to secure Public and Trust Deposits and for other purposes as required or permitted by law.

The basic policy of this Bank —

in its Commercial Banking, Corporate and Personal Trust, Investment,

Savings arid other Departments— is to supply a complete, discerning and resourceful banking service.

. . DIRECTORS
E D W I N C . A U S T IN

FRED G . G U R L E Y

Sidley, Austin, Burgess & H arper

President, Atchison, Topeka &
Santa Fe R ailw ay Company

JA M E S M . B A R K E R
Chairman of the Board,
A llstate Insurance Company

A R T H U R B. H A L L

M A R K A. B R O W N

S T A N L E Y G . H A R R IS
Chairman, E xecutive Committee

T H O M A S DREVER

W A Y N E A. JO H N S T O N

Chairman of the Board,
A m erica n Steel Foundries

President, Illinois Central Railroad
jo h n

Chicago


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Federal Reserve Bank of St. Louis

F. B. M cC o

R I C H A R D E. P R I T C H A R D

nnell

P resident, Sears, Roebuck & Co.

V ice-P resident

F R A N K M cN A IR

G U Y E. R EE D

Chicago

V ice-P resident

A . H . M E L L IN G E R

P A U L S. RUSSELL

D irector,
Illinois B ell Telephone Co.

President

CH ARLES H. M ORSE

Chairman of the Board,
Sw ift & Co.

H all & Ellis

E xecutive V ice-P resid en t

F R A N K R . E L L IO T T

. .

l

H A R O L D H. S W IF T
D irector, Fairbanks,

M orse &

Co.

. M cC a f f r e y

President,
International H arvester Co.

JAM ES L. P A L M E R
President, M arshall F ield & Co.

S T U A R T J. T E M P L E T O N
Wilson & M cllva in e

Northwest ern

Banker, J a n u a r y ,

1950

10

THE ROYAL BANK
OF C A N A D A
H ead

O ffic e , M o n t r e a l

J A M E S M U IR

President
B U R N H A M L . M IT C H E L L

T. H . A T K IN S O N

Vice-President

General Manager

Condensed Annual Statement
as on 30th November, 1949

ASSETS
Cash, cheques and balances with other banks.......................................

$ 432,912,986.68

Government and other public securities, not exceeding market
v a l u e ....................................................................................................................
Other securities, not exceeding market value......................................
C a ll-lo a n s........................................................ .......................................................

1,058,661,626.62
116,817,041.92
69,097,830.05

Other loans and discounts. ..............................................................................
Liabilities of customers under letters of credit.....................................

584.168,935.78
51,790,695.28

Other assets .........................................................................................................

21.536 237.81
$2,334,985,354.14

LIABILITIES
Capital, reserve and undivided profits
Notes in circulation..................................
D eposits...........................................................

$

83,792,238.48
3,703,729.56

2,192,140,578.62

Letters of Credit outstanding................
Other liabilities...........................................

51.790.695.28
3,558,112.20
$2,334,985,354.14

Over 660 Branches in Canada— 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, TRINID AD . MONTSERRAT, ANTIGUA. GRENADA. BRITISH GUIANA*

Auxiliary in France
THE ROYAL BANK OF CANADA (FRAN CE)

Paris

NEW YORK AGENCY
68 William Street

ED W AR D C. H O L A H A N
JO SEPH W . G A N AN N

Agents

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

1950

;

11

THE NORTHERN TRUST COMPANY
C H I C A G O

★
S T A T E M E N T OF C O N D IT I O N D E C E M B E R 31, 1949
RESO U RC ES

Loans and D iscoun ts................................ ................................................... $ 93,088,877.40
302,113,009.58
U. S. Government Securities................ .....................
Other Bonds and Securities.................. ................................................... 131,950,471.55
Federal Reserve Bank S to ck ................. ......................................
Bank Prem ises............................................. ...................................................

510,000.00
1,400,000.00

Custom ers’ Liability, Account Letters o f Credit and Acceptances
Other Resources.......................................... ...................................................
Cash and Due from B an ks..................... ...................................................

689,83 7.90
206,547.50
160,409,095.17

T O T A L ............................................................ .................................................... $690,367,839.10
LIABI L IT I E S

Capital Sto ck .................................................................................................. $

3,000,000.00

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

14,000,000.00

Undivided Profits.........................................................................................
Reserve for Taxes, Interest, etc.............................................................
Dividend Payable January 3, 1950.......................................................
Letters o f Credit and Acceptances O utstand in g..........................

4,703,748.84

Other Liabilities..........................................................................................

14,180,492.61
135,000.00
723,477.46
227,045.17

D eposits:
D em a n d .......................................................................... $451,888,001.79
T im e ................................................................................ 169,948,265.92
31,561,807.31

653,398,075.02

T O T A I...............................................................................................................

$690,367,839.10

U. S. G overnm ent.....................................................

United States Government securities carried in the above statement at $35,036,242.19 are pledged to
secure public and other monies, as required by law; and United States Government and other
securities carried at $581,955.48 are deposited with the State Authorities under the lrust A c
M em ber Federal D eposit Insurance Corporation

I» I II E C T o n s
A.

WATSON ARMOUR

Director, A rm our & Com pany

SEWELL L. AVERY
Chairman, U. S. G ypsum Com pany,
M ontgom ery Ward & Co., Inc.

ALBERT B. DICK, JR.
Chairman, A . B . Dick Com pany

WILLIAM R. ODELL, JR.

SOLOMON BYRON SMITH

Vice President and Treasurer,
International Harvester Com pany

Executive V ice President,
The Northern Trust Com pany

EDWARD L. RYERSON

JOHN STUART

Chairman, Inland Steel Com pany,
Joseph T. R yerson & Son, Inc.

Chairman, The Quaker Oats Com pany

EDWARD BYRON SMITH

MERLE J. TREES

Executive V ice President,
The Northern Trust Com pany

Chairman,
Chicago Bridge & Iron Com pany

SOLOMON A. SMITH,

President, The Northern Trust Com pany

>

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

Northwest ern

Banker, J a n u a r y ,

1950

12

A timely service extended to correspondents by

Among other services to correspondent hanks are:

the Chase is the study and analysis o f a bank’s
portfolio o f U . S. Governm ent and other securities.
Specific recom m endations are made based upon
the bank’s overall investment position and par­

C r e d it in fo rm a tio n on firm s a n d in d iv id u a ls ,
h e re and a b ro a d
Q u a r t e r - h o u r a n d h a lf- h o u r m ail p ick -u p s e r ­
v ice a ro u n d th e clo ck
Q u ick co lle c tio n of c h e c k s , n o te s , d r a f t s ,
co u p o n s a n d c a lle d a n d m a tu re d b o n d s

ticular requirements.
T h e experienced staff and specialized facilities
lo n g maintained by the Chase for reviewing in­
vestments have proved valuable to banks through­

P a rtic ip a tio n in lo ca l lo a n s w ith c o r r e s p o n ­
dent banks

p

D e a le r s in S ta te a n d M u n icip a l B o n d s
E x e c u tio n of o r d e r s fo r p u r c h a s e a n d s a le of
a ll c la s s e s of s e c u ritie s

out the country.
Advice and inform ation on investments is only
one o f the many helpful services that Chase offers

A n a ly s e s o f in v e s tm e n t p o rtfo lio s . . . S a f e ­
k e e p in g of s e c u ritie s
E x p e d itin g
fo r e ig n
t r a n s a c t io n s
th ro u g h
b ra n ch e s an d co rre sp o n d e n ts o v e rse a s

to its correspondents.

THE CHASE NATIONAL BANK
OF THE CITY OF NEW YORK
c
M em ber Federal D ep osit 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

1950

13

DES MOINES
O ldest Financial Journal West of the Mississippi

The following letters are from
Northwestern Banker readers. Your
views and opinions on any subject
are welcome in this column.
"T h e In c o n siste n c y Is Y o u rs"
“ In your December, 1949, issue of the
N orthwestern B anker , you publish a
letter addressed to me in your editorial,
‘Across the Desk from the Publisher/
which reached me by way of one of your
readers. In this letter you point out what
you think is an inconsistency in my remarks
at the convention of the American Bankers
Association. It seems to me, however, that
the inconsistency is yours. I argued that I
saw no good and sufficient reason for ex­
empting any commercial banks from a min­
imum participation in the national under­
taking of providing and supporting a na­
tional monetary and credit policy. That
degree of centralized control we must have
and will have whether all banks are subject
to the reserve requirements of the Federal
Reserve System or not. It is merely a
question of whether there will be a lot of
free riders. The question of undue centrali­
zation to which I addressed myself is in
the administration of this national mone­
tary and credit policy by the Federal Re­
serve System. There I argued for reten­
tion and improvement of the regional char­
acteristics of the System.
“ I brought these two ideas together in
my recent testimony before the Subcommit­
tee on Monetary, Credit and Fiscal Policies
of the Joint Committee on the Economic
Report. A copy of my preliminary state­
ment at the hearing is enclosed. On page
4 you will find the paragraphs I have in
mind.”
Allan Sproul, President,
Federal Reserve Bank,
New York, New York

" M o st In te re stin g "
“ Charts 1, 2 and 3, ‘What Do You Want
From Your Correspondent Bank?’ are most
interesting indeed.
“ Clift, as usual, you and your organiza­
tion on the N orthwestern B anker are
always there with something of interestcountry banks and their city correspondents.
I might add a few more things we have
done for country banks, and might also
give you some unusual requests we have
received from correspondents.”
George A. Malcolm, Presi­
dent, Drovers National Bank,
Chicago, Illinois

(Turn to page 42, please)

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Federal Reserve Bank of St. Louis

•

55th Year

•

No. 750

IN THIS JANUARY, 1950, ISSUE
E D IT O R IA L S
Across the Desk from the Publisher..... ..............................................14, 15
F E A T U R E A R T IC L E S

Dear Editor.............................................
Frontispage ...............
The Outlook for Business Is Good.......... ..................................... .
How to Advertise Your Bank and Your Community.......................
What Women Should Know About Banking... ..........Agnes Kenny
News and Views of the Banking World............Clifford De Puy 22,
Bankers You Know—Tom S. Harkison.... ........... ............................
Record Attendance at First National Bank of Chicago Bankers
Conference—Pictures ................................................................
Can An Executor Deduct His Commission Before Estate Is
Settled?—Legal Questionsand Answers.........................................
What Their Statements Show.......................................... ................
Business Level to Continue High.......................................................
Year-End Investment Survey ...................................... .......... ...... .
Dealer Credit and Wholesale Lines........................ E. A. Thompson
Makes 3-Year Market Survey.......................................... ......... .......
BONDS AND

13
17
19
20
21
23
24
25
26
28
30
32
43
46

IN V E S T M E N T S

The Investment Outlook for 1950...........................Raymond Trigger 51
IN S U R A N C E
Those Extra Services You Give Your Customers ...Harold S. Bowen 55
S T A T E B A N K IN G

N EW S

Minnesota News ............. ............................ ................................. ............
59
Twin City News.......... .......................................................................... 60
South Dakota News......... ......................... .................................. ............... 67
Sioux Falls News..............................................................................
67
North Dakota News.............................................................
69
Nebraska News ................ ................. .................................... .................... 71
Omaha News ..... ................................. ...............................................72
Iowa News ....... .......................................................... .................. .........._______ 77
Des Moines News................................................... .............................. 84
County Association Officers Meet........... .......................................... 89
Conventions ....................... ...................................... ..............................
92
IN T H E

D IR E C T O R S ’ R O O M

A Few Short Stories to Start the New Year.. ................. .... ........... 94

N O RTHW ESTERN BANKER
527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
CLIFFORD DE PUY
RALPH W. MOORHEAD
Publisher
Associate Publisher
HENRY H. HAyNES
BEN J. HALLER, JR.
MALCOLM K. FREELAND
Editor
Associate Editor
Associate Editor
ELIZABETH COLE
HAZEL C. STEPHENSON
SADIE E. WAy
Advertising Assistant
Auditor
Circulation Department
PAUL W. SHOOLL
JOSEPH W. FRANKS
Field Representative
Field Representative
NEW YORK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806
MUrray Hill 2-0326

DE PUY PUBLICATIONS:
Northwestern Banker, Underwriters
Iowa-Nebraska Bank Directory.

Review,

Northwestern Banker, J a n u a r y , 19SO

14
the depression, they are certainly stronger and
have a greater amount of deposits.
The third most important thing that has hap­
pened to banking in the first half of this great cen­
tury has been increased regulation of the banking
business, and more important, the great number
of new government agencies, corporations and
bureaus which have been established and in turn
are competing with banking.
W ith all of these important events, the inde­
pendent banking

system

of America

has

still

fought bravely against government competition,
in 1900 the total banks in the United States were
10,382 with deposits of $8,865,000,000 and today
we have 14,812 banks with deposits of over $165,000,000,000.

The total banks at the peak in the

United States was a little over 30,000.
As we look forward to the last half of the 20th
century, there is a favorable trend on the part of
the public against government ownership of banks.
In a recent survey by the American Institute of
Public Opinion, the question was asked, “During

Across Élie Desk
From the Du lili slier

the next 50 years, do you think the government in
Washington will own and run the banks?” The
replies indicated that 54% voted “no,” 28% voted
“ yes” and 1 8 % had no opinion.”
W ith the recent nationalization of various key
industries in England, this trend in the opposite

G)&Wl. J'oI I w l. J jutul:

direction in the United States is most interesting.

1900— 1950— 2000

In Australia, where the labor government was
recently defeated, one of the reasons given was

As we enter the last year of the first half of the
20th century, there are at least 3 main events

the fact that the proposal to nationalize the banks

which stand out in bold relief in relation to the
banking business in the United States:

As we endeavor to analyze the future of bank­

1. The passage of the Federal Reserve Act of
1913.

ing in America, we believe the most fundamental
problem is to keep our financial institutions sound

2. The business depression of 1932.

and strong so that our general economy will have

3. The increased control of banking and busi­
ness by the government.

available credit when it needs it, and thus in turn

The Federal Reserve Act which created 12 re­
gional

reserve

banks

throughout

the

United

States, with the Federal Reserve Board as the
controlling factor in Washington, was fought bit­
terly by many bankers at the time, because they
feared the concentration of too much banking
power by the Federal Reserve Board.
There probably are not many member banks
which would vote to repeal the Federal Reserve
Act, but there certainly are many who are opposed
to the current wishes of some members of the
board to get control of the reserve requirements
of

of that country caused a very severe drop in the
popularity of the labor party.

non-member

banks

throughout

the

United

States.

assist in promoting the welfare of industry and
business in all of its various activities.
In a N o r t h w
ago it said :

e st e r n

B anker

editorial 50 years

“The gold standard for the United States is now
a part of our law and probably beyond the reach
of any financial theorist to change. The establish­
ment of this standard and the territorial develop­
ments of the last 2 years has thrust America out
from her isolation, and forced her to take a per­
manent position in the markets and politics of the
world. It takes neither a prophet nor the son of
a prophet to foresee the wonderful developments
and growth in power and influence throughout the
world that is destined to be ours during the cen­
tury about to begin.”

The depression of 1932-33 reduced the total num­

There was a “ financial theorist” who appeared

ber of banks, either by liquidation or merger, but

on the political arena in 1932 and later discarded

as a result, while we have fewer banks than before

the gold standard, but the rest of the prognostica-

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

1950

15

i

tion holds true for the balance of the 20 tli century

for 18 years since Franklin, the Federal Financial

because certainly the United States is a world

Favorite, started the “ tax, spend and elect” sys­

power and faces world problems.
So, Father Time, we again lift our hats to you,

tem which has made the W hite House incumbent

and promise to make as fine a record as we can for

Claus.

transcription on your future scrolls.

What do you mean, “There is no Santa Claus"
when 1 president in less than 5 years, excluding
war expenditures, has spent $191 billion, or more
than the previous 32 presidents in 156 years spent
amounting to $179 billion.

Q bW l . Q a td L

5 - S ih a n d lu n tL :

President, Lustron Corporation, Columbus, Ohio
In the December issue of the
B anker

N orthw estern

we discussed some of the loans now being

then, and now, synonymous with the word Santa

Hurrah for H a r r y !
Hurrah for Santa Claus!

made by the Reconstruction Finance Corporation,
and mentioned that the Lustron Corporation, of
which

you

are

president,

had

obtained loans

amounting to $37,500,000 from the RFC.

President, Valley Bank and Trust Company, Des Moines

Now in a recent statement of yours, Mr. Strandlund,

you

told

a House

Committee

that

you

“ launched the prefabricated housing business with

$1,000 of your own money, and then borrowed the
balance of $37,500,000 from the RFC."
May we salute you as the master borrower of
our present screwball government financial sys­
tem?

All we can say is, that if you could talk

the Reconstruction Finance Corporation into a
loan of $37,500,000 and only have $ 1,000 of your
own, you deserve a place in the Hall of Fame along
with Charles “ Get-Rich-Quick” Ponzi of Boston
and J. Rufus Wallingford, hero of the Fanciful
Financial Tales of yesteryear.
If any banker in the United States had made
such a loan or any portion thereof, the boys in
the W hite House would have called him a “ bank­
ing buzzard” and probably had him sent to jail for
dereliction of duty in the handling of depositors’
funds.
Is making an unsafe loan with

(DojaJc ’Jhüdsüáclc 7YL. TYIxmí &otl:

government

funds any different?

It certainly is.

OsiWi. J'hsudL VYL. (BAstumnq&A.:
President, Muskegon Savings Bank, Michigan
So you advertised on your billboards, “There is

no Santa Claus: Work— Earn— Save.”
You were criticized by your community and
changed your .copy to read, “Here is Santa C laus:
W ork— Earn— Save.”
You answered your critics by saying, "A ll I

wanted to do was to impress our citizens that they
shouldn’t depend on Santa Claus for everything.
They should prepare for their own security rather
than depend on government checks written in
Washington.”

Numerous banks have private libraries for their
officers and employes as well as special research
departments,
N orthw estern

but

not

many

B anker

with

which

the

is familiar have offered

prizes to stimulate reading by members of their
staff as you have done.
Congratulations!
First of all, you have set an excellent example
in your own reading habits since you have read
more than 2,500 books yourself.
Your plan, we understand, includes the follow­
ing program :

1. The best books of the past 3 centuries to­
gether with the better works of our time
have been selected for your bank library.
2. No one is “forced” to participate in your
library plan if they do not care to do so.
3. Prizes of money and of books will be awarded
on September 30, 1950.
4. You suggest that employes keep track of the
books they read and write a brief outline of
how the books affect them.
5. One book at a time may be taken from the
library for a period of 2 weeks without re­
newing and no charge is made in any way.
The

N orthw estern

B anker

will be interested

in hearing the results at the end of September of
your reading plan for your employes.
Your idea appeals to us as an excellent one,
because, as Joseph Addison, the famous British
essayist, said several years before he died in 1719 :

“Books are the legacies that a great genius
leaves to mankind, which are delivered down from
generation to generation, as presents to the pos­
terity of those who are yet unborn.”

W h y , Mr. Brueninger, we are ashamed of you
for even suggesting that thrift, and savings, and

>

economy are desirable attributes.
Of course there is a Santa Claus, and has been


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

Northwest ern

Banker, J a n u a r y ,

J950

16

Central

National Bank and Trust Company
Fifth and Locust Street — Des Moines

STATEM EN T OF C O N D IT IO N

AT C LO SE OF B U SIN ESS DECEM BER 3 1 ,

1949

ASSETS
C ash and -due fr o m
Federal Reserve and
other banks
____ $28,420,542.26
United States Govern­
mental Securities___ 22,941,271.48
Obligations of United
States Governmental
A g e n c i e s ...................

2,114,407.90 $53,476,221.64

Municipal Securities........................ .

6,363,033.00

Market Bonds

851,532.83

Other Investments. ............................

260,001.00

Loans and Discounts...........................
O verdrafts......................................

22,098,096.85
2,459.15

Stock Federal Reserve Bank

75,000.00

Accrued Interest Receivable .
Bank Premises and Equipment

235,489.27
552,314.61

Customers’ Liability on
Letters of Credit......................

2,280.00
$83,916,428.35

.....

$ 1,250,000.00

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

1,250,000.00

Undivided P rofits.......

1,304,565.78

Other R eserves...........

A. T . D O N H O W E
Vice-President
W M . J. G O O D W IN
Chairman, Board of Directors

W . J. G O O D W I N , JR.
President, Des Moines Clay Co.
H. F. G R O SS
Chairman, Iowa Mutual Tornado
Insurance Assn.
B. R E E S JO N E S
President, T ow n Mutual Dwelling
Insurance Co.

LIABILITIES
Common Stock

E. F. B U C K L E Y
President

R O B E R T K. G O O D W IN
President, Redfield Brick & Tile Co.

TOTAL.

Surplus

D I R E C T O R S

E D W . A. K I M B A L L
Executive Vice-President, Iow a
Manufacturers Assn.
GUY

1,004,233.27

$4,808,799.05

E. L O G A N

W ALTER

E. M U IR

G E O R G E A. P E A K
Real Estate

Reserves for Taxes, Interest
and Other Expense

147,403.34

J U L IA N A. P E V E R I L L
Chairman. H udson-Jones Auto Co.

Discount C o lle cte d ...... ...........

181,190.06

W A L T E R L. S T E W A R T
Vice-Chairm an

Bank’s Liability on
Letters of Credit
Deposits

.........

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

2,280.00
78,776,755.90
.. $83,916,428.35

U. S. G o v e rn m e n t a n d o th er se cu ritie s
c a r rie d a t $ 4 ,0 1 0 ,6 1 9 .6 4 a r e p le d g e d to
se cu re U. S. W a r Lo a n D e p o sit A cco u n t,
P u b lic F u n d s, a n d T ru st D e p a rtm e n t Fu n d s.

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

1950

F R A N K R. W A R D E N
Vice-President

M em b e r F e d e ra l D ep o sit
In su ra n c e C o rp o ra tio n

r*

Northwestern Banker, January, 1950


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

To the ACCURACY, DEPENDABILITY and
SPEED of Allen-Wales adding machines have
now been added modern styling and pleasing
color —the bright look for the right figures.

ALLEN W WALES
ALLEN-WALES ADDING MACHINE DIVISION
OF
THE NATIONAL CASH REGISTER COMPANY

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Federal Reserve Bank of St. Louis

444
NEW

MADISON
YORK

AVENUE
22,

N.

Y.

&

19

The Outlook
T or
MtusinessHood
A Banker and an Economist Give Their
Views on What We Can Expect as We Go Into 1950
PEAKING at the 18th Mid-Conti­
nent Trust Conference of the
Trust Division of the American
Bankers Association, held early last
month in Chicago, W. Randolph Burg­
ess, chairman of the board of the
City Bank Farmers Trust Company,
New York City, and Dr. Howard R.
Bowen, dean of the College of Com­
merce and Business Administration of
the University of Illinois, analyzed the
business economy of the Nation, and
came up with answers that would indi­
cate the financial, industrial and com­
mercial interest of this country are
headed for another good year in 1950.

S

gant plans for agriculture are there­
fore not supported by the principal
farm leaders.
“ On October 29th, President Truman
announced that he would hold in re­
serve the Congressional appropriation

M r . Mtaryess S a y s :
“ Some say the American people have
lost their ancient virtues of thrift and
patriotism, and are willing to sell their
votes for a mess of pottage; that they
will continue to cast their votes, not
for the long term good of the coun­
try, but for their own immediate self­
ish advantage. There seem to me am­
ple reasons to believe that this is not
true, and that if we will go to work
at it intelligently the books can be
balanced and we can fulfill the respon­
sibilities imposed by our various na­
tional trusts.
“ Here are a few of the reasons for
hope:
“ On November 18th, Louis Johnson,
Secretary of Defense, speaking in Bos­
ton, said that the Department of De­
fense hoped to slash two billion dollars
off its budget and still leave the coun­
try ‘adequately prepared to face any
military crisis.’
“ On November 8, 1949, Paul Hoffman
was reported in the press as saying
that he would seek considerably lower
dollar aid for western Europe next fis­
cal year, and Senator Connally, the
Democratic chairman of the Senate
Foreign Relations Committee, states
that E.C.A. aid should be reduced by
one billion dollars from this year’s
level.
“Within the past few months Allan
Kline, president of the American Farm
Bureau, and Albert Goss, president of
the National Grange, have come out in
favor of flexible price supports for
agriculture, and in opposition to both
the rigid 90 per cent of parity supports
and the Brannan Plan. These extrava­

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the problems we face. They reveal
the presence of leaders with courage
and conscience. The coming months
will be a testing time to see what kind
of leadership will prevail, the unscru­
pulous appeal to blind self-interest, or
the appeal to reason in the long term
national interest.
“ Which way the pendulum swings
will depend on the willingness of men
of good will and understanding to give
time to explaining the issues to the
people, and will depend also on the
keenness of conscience with which re­
sponsible groups within our country,
like this group of bankers, are willing
to put the national interest ahead of
their own immediate interest.”

Mir. Mtoiren S a y s :

W . R A N D O L P H BUR GESS
“ There are reasons for hope’’

for increasing the combat groups in
the Air Force from 48 to 58.
“Within the past few weeks the
junior democratic senator from Illi­
nois announced his opposition to the
unbalanced budget and urged a budget
balance through reducing expendi­
tures.
“ The Secretary of the Treasury and,
subsequently, the President of the
United States have announced in un­
mistakable terms that it is the policy
of the United States to maintain the
present gold value of the dollar.
“A widely respected former Secre­
tary of State, James Byrnes, a Demo­
crat, has spoken out fearlessly and vig­
orously against excessive spending and
too big government.
“At least three responsible commis­
sions and committees have reviewed
the Federal budget, and all have re­
ported that it can be brought into bal­
ance without sacrificing any essential
objective.
“ All of these are signs in the sky
that the American people are gradual­
ly awakening to an understanding of

“American economy has greater sta­
bility and resilience now than it ever
had before. This stability derives
from the knowledge, experience and
fears gained since 1929 in meeting the
vicissitudes of depression, war, and
inflation. Under the impact of the
problems faced during this period the
science of economics has developed at
an almost unprecedented rate. Today
we have a far more effective intellec­
tual equipment to guide private and
public economic policy than was avail­
able a generation ago.
“ The experience of the great depres­
sion and the intellectual and institu­
tional developments to which it gave
rise have produced powerful supports
for the economy which will become
effective in the event of depression. It
may well be that these supports are
so strong that they have over-compen­
sated for any likely depression and
that the overriding danger is inflation.
Many shrewd economists argue that
our fear of depression will lead us to
adopt strongly inflationary policies
whenever we are faced with the slight­
est downward trend in business. As a
result, recovery from depression will
be rapid, but an inflationary potential
for the subsequent recovery will be
generated. Thus, the economy will be
consistently biased toward even high­
er prices.
“Although there may be something
(Turn to page 47, please)
Northwest ern

Banker, J a n u a r y ,

1950

20

If off to A d vertise
Your Êtaoh a ad
Y oa r t oat ai a a it y
EPRODUCED on this page are three of a series of
seven advertisements by the Burlington Bank & Trust
RCompany,
of Burlington, Iowa, which ran in its local

Dasjkwwdi P a A ~ ssta s»4 im m otai te eh« œorefajt, «Ke« «im the
4a» with páeníék«« «ad ehädr«» ptayte«, » « th« «Kd af th» day so
r »« w M asd
R«tìmm«et day» too will b* peace?»! « ¡d restful if prepararte«
ha«« fe»»» wad« for Hum. Regular «avi»* «a w« «ara b th* way to
ha«« money w h « working day» nr* over.*
Pat your good «stobrttoss to «a«« into affect »ew, and deposit a
part o f your next paycheck at the Burtiagta JR»»* *«d Trust Compauy. Your Savings Account will be appreciated and every effort will
be made to mah» your basteras ptawajst and profitaM«,

BURLINGTON BANK
AND TRUST COMPANY
‘Tour Financial Partner—To Work With You and For You”
S ou th ««! Comer Mais and Jeffers*» S tm t*

Member of Federa! Deposit Insurance ftorpemton

A print o f the above picture may- be «wared upon request at the Burirngtoii Bank & Trust Co.

newspaper during the past summer and early fall months.
Actual size, the advertisements measured four columns
wide by eleven inches deep, their purpose being to tell
customers about the savings and checking facilities of the
hank. Special attention to the advertisements was gained
by calling attention to the many out-of-door recreational
centers available to the community.
Responsible for the idea of this type of advertising
was Mrs. Juanita Bindon, assistant trust officer of the
Burlington Bank & Trust Company, who makes the fol­
lowing comment:
“The thought was that during that particular time of
year people were interested in out-of-door recreation and
would notice these pictures. Also these pictures gave us
a good opportunity to stress the advantages and impor­
tance of bank savings and checking accounts. Comments
ranging from approval to quite enthusiastic have been
received.
“This series has identified our advertising and we plan
to continue the same general setup with local photographs
and copy featuring the industrial, farming and business
life of the community.”

JZAAK WALTON LAKE
W resfsan fe good mesta! f l a t t sad ¡rosy Burimgtoaiaps 8s*»d
boyr» «B the welt ¿ ju , beautiful W a t H A CUurse.
If
t e «ver Wed to Stefa a tea* s te ri* « drive you tarn* it
Ííttes a tot at ïp etice to ptey a good «m x of golf. The “gam« of <ae
teg ' takes persistence too, pad it is the regularity> at
a «aviar
'
'
that
;
ttfí the dollars.
Step at the BarBagtai Bat* aed Trust Company each pay day
f®1- a
®?re 4 o)ia « 3E your Savin»» Account. for year special
wil!
be establish*»* good S f l aad a friendly

Because of She iriasaiton ant
that the beautiful Irjtak Walton L
port of their reserve water supply.

it gives, few people realise
» « U H « . 8 . «servo»-, a

A parallel may be mad«
which is a resone money supply for
dr opportunities sod e»«rgs»ei«*. la
the meantime, your savin*« »«count:t gives you a ferite* of security and
power, which ha» a great ìnflunsce on yesr M tjviti« and health.
Build your reserve at the Burlington Bank and Trust Company, Yau
writ find vs to be your fteanrial partner to work, with you and for m
in all year finaociM undertakings.

:

BURLINGTON BANK

BURLINGTON BANK
—AND—

TRUST COMPANY
“Your Financial Partner -To Work With Yon and For Ym ”
Southeast jgaroetj Main and Jaffraeen Street«
e Insured to

by t i» Fsdersl

- Ó? te« *Mvr rirtan- ™« « »Kat««

N o r t h w e s t e r n Banker, J a n u a r y ,


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Federal Reserve Bank of St. Louis

1950

21

W hut W om en Should
K n ow A bou t Kuuhiuy
It Is a Wise Woman Who Becomes Better Acquainted
With Her Banker, and Takes His Advice
By A G N E S K E N N Y
M ilw a u k e e , W isco n sin
M IS S A G N E S K E N N Y
“ W is e m anagement of funds^
requires thought and planning”

her—if she has it, she can always find
someone to manage it for her.” In
that very statement lies the story of
many heart-rending losses. Every in­
telligent woman should make an effort
to learn the fundamentals, at least, of
money management and it has been
my privilege during my banking ex­
perience to be the medium through
which that knowledge was acquired
by some of those with whom I came
1.
That the financial world is man’s in contact. It was a happy satisfaction
domain and unless one has an aptitude to me to see women who, discouraged
for higher mathematics, it is waste of
and despondent both mentally and
energy to attempt to invade it;
physically, after the loss of a loved
2.
That money is wealth and will in­ husband, or son, or brother, emerged
sure happiness;
from that depression with a feeling of
3.
That banking is a cold business confidence in their ability to overcome
and the banker is not interested in the
personal problems of his customers.
Each of these fallacies could be the
theme of a separate story, but because
TH E A U T H O R
they are closely related, I shall con­
One of the first women executives
sider them briefly in this account.
in American banking, Miss Kenny

Y EXPERIENCE as organizer
and manager, for many years,
of the women’s department of
a large metropolitan bank gave me an
unusual opportunity for observation
of the attitude of women toward bank­
ing as a business and profession. Com­
monly heard among women are three
fallacies about banking and finance
which are rather generally accepted:

M

First: If we regard the financial
world as one where money is earned
and increased through cautious invest­
ment, we shall admit it is primarily
man’s domain, but we must admit,
also, that the largest part of that ac­
cumulation is inherited by women. If
70 per cent of the wealth of our nation
is possessed by women—mostly wid­
ows—and if, according to statistics,
their life-lease is longer than that of
men, it would seem to be just good
common sense on the part of women
to learn something about the manage­
ment of money. The idea that a man
just naturally understands financial
problems is a thread-bare theory and
not based on fact. Frequently we
hear: “A woman doesn’t need to know
much about money. If she hasn’t any,
knowledge of it is of no benefit to

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retired recently as head of the
W o m en s Department of the First
Wisconsin National Bank of Milwau­
kee.
Starting originally as a school teach­
er 31 years ago, she took a summer
job at the First National. She liked
the position, the bank liked her, so
she stayed on, and a year later organ­
ized the bank’s women s department.
Since that time she has advised count­
less women on their financial prob­
lems.
Miss K enny was the organizer and
president for two terms of the Asso­
ciation of Bank W om en. While re­
tired from the bank, through writing
and speaking she expects to keep
right on helping women with their
banking, investment, and budget
needs.

the obstacles that had seemed unsurmountable. But the will to learn is
essential to, such development.
M oney N ot A lw a y s H a p p in e ss

Second: A study of economics would
elucidate the relation between money
and wealth but I shall not attempt an
excursion into that scientific realm.
Not money itself, but what money will
buy in economic goods and services
constitutes wealth, and money pro­
vides wealth when it serves the pur­
pose for which it was intended. Money
as such cannot insure happiness, for
the cold hard metal cannot produce
the inner human satisfaction that is
procured by the services money can
buy. Only the miser, who loves to
see the greenbacks and the metal ac­
cumulate before him, is the one who
can be thrilled by its sight and touch.
“Unhappy lies the head that wears a
crown” may well be said of the one
who does not realize that only by
using money for her own needs and
for the service of others is true hap­
piness assured.
Wise management of funds requires
thought and planning and any woman
of average intelligence and a will to
know can learn to plan her expendi­
tures and her investments. For the
woman who has a large income it is
usually advisable, and often necessary,
to have the assistance of a wise coun­
selor who can relieve her of the worry
such management might entail. But
she should acquaint herself with the
basic principles so that she may follow
intelligently the procedure. The much
maligned budget idea is a remedy for
most financial ailments.
Third: It is quite true that in times
(Turn to page 45, please)
No rthwest ern

Banker, J a n u a r y ,

1950


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Federal Reserve Bank of St. Louis

Xetrs a tut Views
O F T H E B A N K IN G W O R L D
By CLIFFORD DE PUY, Publisher

FTER completing a 6,000-mile
round trip by way of the south­
west and the Pacific Coast to
the American Bankers Convention in
San Francisco, one of the very impor­
tant “items” to report was that we
never scratched a fender nor changed
a tire.

A

cific. We viewed it through our bi­
noculars, as no one is allowed to enter
the estate without special permission.
The official name over the entrance is
“Piedra Beanca Rancho.”

Only Mr. Hearst’s sons use the “cas­
tle” now, as W. R. Hearst, who is 89
years of age and not well, lives most
of the time at Beverly Hills.

NO PICTURES—When you enter the
Paramount Studios in Hollywood, the first
sign which greets you at the main gate is
that “ no pictures” may be taken inside.
Amateur competition is no doubt too great.

*

In the Los Angeles amusement field
year, still play to packed houses.
“The Drunkard” is owned by Mil­
dred Use and must be a “gold mine.”
There are no theatre seats, as such,
hut each person is seated at a table,
and beer, root beer, coffee, sandwiches
and pretzels are all included in the
price of admission. After the perform­
ance of “ The Drunkard” is concluded
the “Olio” starts, which includes
vaudeville acts, specialty dancing num­
bers, and much community singing by
the audience. The master of cere­
monies the night we were there called
out the names of 10 to 15 guests and
told where they were sitting and from
what part of the country they came.
If you want your name mentioned,
just tell the box office in advance and
you can get some free publicity.

At a dinner party in Los Angeles, we
met a gentleman who had been 30
years with Scotland Yards and is now
retired, and the surprising thing he
told us was that no member of the
Scotland Yard’s organization ever car­
ries a gun. He said that only once in
his experience had a “Yardsman”
ever been shot by a criminal.
*

*

*

SUICIDE TABLE—Virginia City, Ne­
vada is located in the famous gold mining
region of that state. One of the most color­
ful places in the city is the Sawdust Corner
Saloon where they show you the Suicide
Table where 3 different men took their
lives at different times after losing from
$25,000 to $50,000 playing poker.

THE DRUNKARD— Xo show on Broad­
way or anywhere else in the world has
had as long a run as the Drunkard which
is now in its 17th year at the Theatre
Mart in Los Angeles.

7

VF AD

*

“The Drunkard,” in its 17th year and
the “Turnabout Theatre” in its 9th

SAN SIMEON ENTRANCE— This is
the entrance to the William Randolph
Hearst estate where he has his San Simeon
Castle built at a cost of over a million
dollars on the hill in the background. It
overlooks the Pacific half-way between
Los Angeles and San Francisco.

In driving up the coast road from
Los Angeles to San Francisco, we
stopped to look at the W. R. Hearst
San Simeon Castle which is located on
a high mountain overlooking the Pa-

*

“The Drunkard” was first produced
in 1843 by P. T. Barnum at his Ameri­
can Museum in New York City. It was
presented as a great moral lesson and
played with great success for more
than a year. The show made its initial
Hollywood bow at the Theatre Mart
in 1933 and has played continuously at
the same location, and has been seen
by over 2 million people. Many of the
Hollywood stars have seen the show
from 10 to 20 times.
TURN ABOUT THEATRE— This enter­
tainment establishment is in its 9th year
in Los Angeles and gives you a puppet
show the first half of the evening, and then
you turn your seats around and the second
half of the show is given by real live per­
formers, on a stage at the other end of the
theatre.

LONGEST

RUN

IN

THE

WORLD!

^ B I I M I T a ^ theatre mart
q fa D R M M A R D ★
REFRESHMENTS INCLUDED IN ADMISSION

CLINTON AT VERMONT
NO. 211-21
,
EVERY NIGHT *

ELSA LANCHESTER 6T.L,
YALE PUPPETEERS
towîT L O n E GOSLAR BURNETT
DOROTHY NEUMANN • LEOTA LANE

716 N. LA CIENEGA • CR. 6 1005 ^

>■

I I IPs
t®

1»

Wmm

CARMEL BY THE SEA—Thei•e was
probably no more beautiful place along
the Pacific Coasf than Carmel By The
Sea with its wind blown trees and rug­
ged coast line. Its famous “17-mile
drive” is one of the most interesting
in California.

If someone asks you how you are
enjoying the “liquid sunshine” in
California you will know they are local
community boosters, because they are
really talking about the fog.
*

*

*

Carmel-By-the-Sea is one of the most
beautiful spots on the Pacific Coast
and the famous “ Seventeen Mile
Drive” is most delightful.
In the town of Carmel itself there
are no street numbers, no street lights
and no mail delivery. In the latter
case you have to take your mail to the
post office and also receive your mail
at that point.
*

*

*

In Monterey is located the “FIRST
Theatre of California” which was built
in 1847 by Jack Swan. The first paid
performance was in 1848. Judging
from the acting the night we were
there, they had not improved much
during the past 101 years.
*

*

=!=

Since we know Duncan Hines per­
sonally, we follow his books when
travelling, but in San Francisco we
saw this interesting sign, “Bob’s—Not
recommended by Duncan Hines, but
what an adventure, and food you’ll
remember.”
*

*

*

When you take a cruise around the
San Francisco Bay natives remind you
that they have three famous bridges,
the Golden Gate, the Bay and Harry!!
Thanks to Harry??? there have been
no shipments in and out of the San
Francisco docks for several months.
=i= *

*

In Los Angeles we visited the Para­
mount Studios on the front gate of
which it says “Positively no cameras
permitted on studio premises.” Evi­
dently they can’t stand competition of
“us amateurs.”


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TOP OF THE MARK -Very few ^
visitors in San Francisco miss having a
cocktail or a cup of tea at the Top of
the Mark where a most interesting and
colorful view of San Francisco Bay
may be seen. When flic sun goes down
in the Pacific and the lights of San
Francisco, Berkeley, Oakland and the
Bay area come on, it is really awe
inspiring.
■

At the Cafe Continental, which is
within the studio grounds and op­
erated by Paramount, we had the
pleasure of seeing Charles Coburn,
Allan Ladd and Cecil B. DeMille,
among others.
The previous night we had seen
Robert Taylor, Barbara Stanwyck,
Sonja Heilie and her new husband,
William Gardner, Jr.

(Turn to page 38, please)
LARGEST SKI LIFT
The world’s
largest ski lift is located in Squaw Valley
near Tahoe, California, and while Aspen,
Colorado and Sun Valley, Idaho have re­
ceived more publicity, they have no place
where you can leap from a higher ski lift.
DIVORCE CENTER— Reno, Nevada,
still is known as the divorce center of
the United States and reached its peak
period in 194(> when divorces granted
in that city amounted to 11,145.

VALLEY

24

H a n kers You

Tam S.

•

Ht

President
The National Bank of South Dakota
Sioux Falls
“A banker’s work does not end in the bank”

OM S. H A R K ISO N , president of
the National Bank of South Dakota
in Sioux Falls, is a banker with wide­
ly diversified community interests. He
does not believe that a banker’s work
ends in the bank, but rather he thinks
there is a responsibility to work for
the betterment of the city and state.
Instead of pursuing this goal of civic
betterment through one main chan­
nel, Mr. Harkison diverts his energy
to many endeavors, as witnessed by
his prominent work in the American
Legion. Masonic bodies, his church
and various other civic groups.
Along with this outside work in
public life, Mr. Harkison has con­
tributed freely of his time to the pro­
motion of hanking interests through
the South Dakota Bankers Associa­
tion, of which he is now president,
and through the American Bankers
Association, where he is serving on
the federal legislative committee.
Mr. Harkison’s many activities do
not detract anything from his atten­
tion to executive supervision of the
National Bank of South Dakota. He
is keenly aware of rapidly changing
times and trends and summarizes to­
day’s most important problem facing
N o r t h w e s t e r n Banker , J a n u a r y ,


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Federal Reserve Bank of St. Louis

1950

hankers with this comment, “ W e must
give adequate, comprehensive, yet
conservative service to customers and
the public (with proper return to
stockholders) to maintain the dual
system of hanking without govern­
ment control and ownership.”
Pom Harkison is a native of Penn­
sylvania by birth, having been born
in Honey Grove in that state on April
3, 1896. His entire business life has
been spent, however, in the threestate area of North Dakota, South
Dakota and Minnesota. After attend­
ing high school he entered the bank­
ing business in North Dakota in 1916
and also attended business college.
From 1917 to 1919 he served in the
Coast Artillery Corps, then in the
finance division of the Quartermaster
Corps during W orld W ar I.
He returned to the banking field
following his army service, continuing
in North Dakota, his last position in
that state being as cashier of the First
National Bank at Cando.
He left
there in March, 1936 to join the credit
department of the First Bank Stock
Corporation in Minneapolis. A little
more than a year later, in July, 1937,
he joined the National Bank of South

Dakota in Sioux Falls as vice presi­
dent. His election to the presidency
followed in January, 1944. Deposits
of the bank at the present time are
approximately $18,000,000.
Mr. Harkison was married to M il­
dred McIntosh on July 1 , 1919 and
they have one daughter, Jean M., 22.
This month marks the completion
of Air. Harkison’s term of office as Po­
tentate of El Riad Temple AA O N M S
at Sioux Falls. He is a member of
the Masonic Order, York and Scottish
Rite Bodies, the Shrine, and is vice
president of the Midwest Shrine A s­
sociation.
In 1944 he was Commander of the
Sioux Falls American Legion Post, is
currently treasurer of the Kiwanis
Club, treasurer of the Minnehaha
County Chapter of the American Can­
cer Society and a former director of
the Sioux Falls Chamber of Com­
merce.
His church association in­
cludes a trusteeship of the First Bap­
tist Church.
For relaxation, Air. Harkison turns
to hunting, fishing and golf, hut
claims he is below average in each.
His political affiliation is Republican.

R eco rd A tten d unce nt F irst N ational
Manli o f Chieau o K ankers Con fer enee

More than 700 bankers from 35 states attended the third
annual conference of bank correspondents, sponsored recently
by The First National Bank of Chicago. The conference was
the largest ever organized by the bank to develop an even closer
personal relationship with its correspondent banks and to render
them a constructive service by a practical discussion of mutual
problems.
Four panel discussions were scheduled 'simultaneously in four
separate rooms. Walter M. Heymann, vice president, presided
at the discussion on Public Eelations and Savings. Verne L.
Bartling, assistant vice president, presided at the discussion on
Managing a Country Bank. The discussion on Bank Operations
was led by C. Edward Dahlin, attorney. Austin Jenner, vice
president, John H. Grier, vice president, and Lewis Miller,
assistant vice president, covered the discussions on government
and municipal securities. The panel discussions were repeated
four times in order to give everyone an opportunity to sit in
on all the discussions.
Pictured above are a few of the bankers attending the First
National Bank Conference. Beading from left to right, they
are:
Upper left— Ernest Hultgren; Verne L. Bartling, assistant
vice president; and John J. Anton, vice president and head of
the bankers division, all of the First National Bank, Chicago.
Upper center— T. H. Swiler, assistant cashier Burlington Bank
& Trust Company, Burlington, Iowa; Will Lane, president

New Vice President
A major appointment of interest to
bankers has been made by Lawrence
Warehouse Company, nation-wide op­
erators of field warehouses, according
to an announcement made by Law­
rence S. Coates, the company’s execu­
tive vice president.

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Security Savings Bank, Marshalltown, Iowa; M. G. Addicks,
vice president Citizens State Bank, Donnellson, Iowa; Frank
C. Crone, president National Bank of Washington, Washington,
Iowa; William Buxton, III, president Peoples Trust & Savings
Bank, Indianola, Iowa; and B. M. Wheelock, vice president
Security National Bank, Sioux City, Iowa.
Upper right— Tom N. Hayter, vice president First National
Bank, Sioux Falls, South Dakota; and Henry Visser, cashier
First National Bank, Hawarden, Iowa.
Lower left— T. H. Wake, Jr., president Jones National Bank,
Seward, Nebraska; Harold R. Deitemeyer, cashier First National
Bank, Beatrice, Nebraska; Robert L. Stout, president First Na­
tional Bank, Tekamah, Nebraska; W. W. Blasier, president
Farmers State Bank, Jesup, Iowa; Fred Peters, assistant vice
president United States National Bank, Omaha; C. J. Schneider,
president Plattsmouth State Bank, Plattsmouth, Nebraska; and
A. C. Glandt, vice president and cashier First National Bank,
Lincoln, Nebraska.
Lower right— G. Y. Somero, president First National Bank,
Ely, Minnesota; Robert Pye, secretary Minnesota Bankers Asso­
ciation, Minneapolis; N. V. Torgerson, president Farmers State
Bank, Adams, Minnesota; C. F. Dabelstein, president Olmsted
County Bank & Trust Company, Rochester, Minnesota; John
Carlander, president State Bank of Faribault, Minnesota; and
Frank Powers, president Kanabec State Bank, Mora, Minnesota.

Murray T. Wellman, who has been
associated with Lawrence since 1926
and well known to bankers in the east
and middle west, has been appointed
vice president in charge of sales for
the eastern division of the company.
Mr. Wellman’s new assignment will
cover sales development and manage­

ment in the eastern division, with
offices at present quarters, 72 Wall
Street, New York City. Branch offices
at Philadelphia, Atlanta, Charlotte,
Washington, Boston. Buffalo and Pitts­
burgh will be actively continued under
his supervision, with further expan­
sion anticipated in the southeast.
Northwest ern

Banker, J a n u a r y ,

1950

26

LEGAL

# «fi A ft

E
x
:ve u tor Hvdnvt

# ont m ission Ht»fart» Estait» i s S v itic i?
U . Cunningham, a banker, was ex­
ecutor of the estate of a decedent
which was subject to the Federal es­
tate tax. In computing its net value
for Federal estate tax purposes he de­
ducted from the gross a reasonable
estimate of the amount that would he
allowed him as executor by the laws
of the jurisdiction in which the estate
was being administered. His commis­
sions, however, had not at that time
been either awarded by court decree
or paid. Should he be sustained in
taking the deduction?

Yes. It is well settled that expenses
of administration, including executors’
commissions, are deductible in com­
puting net estates for the purpose of
Federal estate taxes before they have
been paid or allowed by the court hav­
ing jurisdiction of the probate of the
estate provided such expenses are a
reasonable estimate of the amount al­
lowable under local law. The U. S.
tax court has so stated in a recent
decision.

Q.

Olson, a banker, owned a build­
ing which he leased for a term of two
years to Svenson, who conducted a
grocery store therein. Both parties
understood and agreed that Svenson
could install and remove trade fixtures
at any time during the term of the
lease. There was no understanding,
however, that, after the end of the
lease and the surrender of possession
of the premises, Svenson could re­
move them. Also there were no spe­
cial circumstances which would per­
mit a removal after that time. If
Svenson should surrender possession
of the premises without removing his
trade fixtures could he remove them
at a later date under the general rule
applicable in such matters?

No. The rule is well established that
ordinarily, and in the absence of spe­
cial circumstances, a tenant may not
remove his trade fixtures or improve­
ments after he has surrendered posses­
sion of premises leased by him. In
many cases such surrender by the ten­
ant without taking fixtures with him
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

7950

This and O th e r T im e ly L e g a l
Q u e stio n s A re A n s w e re d
b y th e
LEG A L D EPA RTM EN T
of the
N O RTH W ESTERN

BAN KER

is regarded as an abandonment of
them by him. Iowa, Nebraska, Mis­
souri, Kentucky, Illinois, Indiana,
Michigan and Wisconsin are among
the jurisdictions in which decisions
supporting various aspects of these
views of the law may be found.

Q.

Colton pledged certain shares of
corporate stock to an Illinois hank as
security for a loan. Attached to the
certificate was an irrevocable stock
power duly signed by Colton. It be­
came necessary for the bank to sell the
stock, which it did, and, as an inci­
dent to the sale, the bank guaranteed
Colton’s signature on the stock power.
Later Colton died. His sole heir con­
tended the signature was not genuine
and sued the corporation to require it
to issue the stock to him. The cor­
poration defended the suit and proved
the signature genuine. It sought to
recover its expenses in this regard
from the bank that guaranteed the sig­
nature. Could it do so?

No, according to a recent Illinois
Appellate Court decision. The signa­
ture guarantee meant only that the
bank assured anyone choosing to de­
pend upon it that the signature was
genuine. Liability of the bank was
limited to the loss suffered by anyone
acting, to his detriment, upon the as­
surance in the event the signature was
false. It follows that, since the sig­
nature on the stock power was gen­
uine, there was no liability.

Q.

Cowbell, a retired banker, went
into the stock and bond business and
became a registered broker and dealer
under appropriate Federal law. He
wilfully violated certain provisions of
the law in that he failed to disclose

certain features of his operations to
his clients and the Securities Commis­
sion revoked his license. He took the
matter to court and a majority of his
clients came in as amicus curiae and
informed the court that they under­
stood fully their dealings with him;
that they were satisfied with, and had,
profited by, such dealings; and that
they wished to continue to use his
services. On such a showing should
the registration be reinstated?

No. It is no defense to a proceeding
before the Securities Commission to
revoke the registration of a brokerdealer that the majority, or even all,
of his clients understand completely
the nature of their dealings with him
and are satisfied with, and have prof­
ited by and wish to continue with, his
method of doing business with them.
Where a willful violation of the stat­
utes occurs and a revocation is in the
public interest it will be sustained
even though no one is misled or has
suffered injury.

Q.

The North Dakota Legislature
passed in 1948 a law prohibiting the
establishment and maintenance by the
state and its political subdivisions of
parking meters requiring the deposit
of coins or tokens for the privilege of
parking cars on the streets and high­
ways. Several cities had parking
meters prior to the passage of the law.
These had been established by ordi­
nances and other acts of their various
governing bodies, the memberships of
which were made up of bankers and
others. These cities challenged the
law claiming it to be unconstitutional.
Should they prevail.

No. The North Dakota Supreme
Court has held recently that the law in
question is a valid enactment and that
the parking meter ordinances of the
various cities involved were nullified.
In doing so it pointed out that the
cities were merely the agencies of the
state in regulating the use of the
(Turn to page 57, please)

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

S ia b w u w L 4 , Ç o n d iiiü Ÿ L
December 31, 1949
RESOURCES
Loans and Discounts..................................... $ 27,442,761.36
Overdrafts........................................................
4,006.58
State and Municipal Bonds..........................
11,421,539.26
3,090,388.52
Corporation Bonds.....................................
Stock in Federal Reserve Bank..................
150,000.00
Bank Office Building.....................................
899,000.00
Furniture and Fixtures...................................
1.00
Income Earned But Not Collected..............
427,827.47
Bonds of United States and
Government Agencies $67,508,020.34
Due From Federal
Reserve Bank................ 21,862,851.84
Cash and Sight Exchange 25,768,550.45
115,139,422.63
$158,574,946.82
LIABILITIES
Capital Stock ..................................................$ 2,500,000.00
Surplus ............................................................
2,500,000.00
Undivided Profits...........................................
2,727,498.34
Reserve for Contingencies...........................
1,080,225.29
Accrued Taxes, Interest and Other
Expenses......................................................
187,729.42
Dividend Declared and Unpaid..................
50,000.00
U. S. Government
Deposits........................ $ 7,338,623.38
Deposits............................. 142,190,870.39
149,529,493.77
$158,574,946.82
United States Government and other securities carried at $17,231,243.94 are pledged
to secure public and trust deposits and for other purposes required by law.

Northwest ern

Banker, J a n u a r y ,

1950

28

*

W h a t Their Statem ents
Interesting Statement Figures Are Shown in These
Reports Received by the NORTHWESTERN BANKER

(Last three figures omitted)
December 31, 1949
ILLINOIS—Chicago Deposits
Loans
Am. Nat. B & T Co.$ 247,207
62,269
Central National .... 60,798
17,821
City Nat. B & T Co. 333,303
73,097
Cont. Illinois B & T 2,348,174
361,653
Drovers Nat’l Bk....
84,496
9,336
Drovers Tr. & Sav...
30,100
5,220
First National ...... 2,278,611
790,957
Harris Tr. & Sav.... 577,072
151,414
LaSalle National ...
81,880
19,031
Live Stock Nat’l....
55,287
10,282
Northern Trust Co. 653,398
93,089
IOWA—Des Moines
Bankers Trust Co,....
Capital City St. Bk.
Cent. Nat. B & T Co.
D. M. B & T Co....
First Federal St___
Iowa-D.M. Nat’l ....
Iowa State ............
Valley B & T Co...
Sioux City
First National .......
Live Stock Nat’l....
Security National ..
Toy National ........
Other Iowa Banks
National Bank of
Burlington ........
Cedar Falls—
First National ....
Cedar Rapids—
Merchants Nat’l....
Clinton—City Nat’l
Davenp’t B & T Co.
Dubuque—
Amer. Tr. & Sav.
Independence—
Farmers State Sav.
Iowa City—
Iowa St. B & T....
Ottumwa—
Union B & T Co...
National Bank of
Waterloo ............
Waterloo Sav. Bk....

Deposits
Loans
$ 220,237 ! 65,622
61,532
17,157
321,945
71,350
2,159,927
458,735
80,573
9,310
30,528
5,217
2,078,525
844,049
508,577
169,572
71,786
15,505
54,692
11,555
656,262
91,571

54,456
9,378
78,777
8,100
3,172
105,503
7,640
18,729

17,529
3,369
22,098
2,403
1,108
25,474
3,746
8,086

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

20,805
25,251
27,789
25,828

7,757
4,071
7,404
6,619

18,861
26,443
26,112
23,486

5,857
4,271
7,558
5,573

9,933

3,795

10,360

3,160

4,078

595

4,266

592

80,215
14,266
72,925

11,924
3,294
23,849

77,541
14,188
73,929

12,460
3,108
22,189

20,981

5,652

19,420

4,292

5,481

1,447

5,440

1,121

11,031

4,008

10,882

3,767

14,369

5,304

14,311

4,834

25,629
19^00

6,149
5,937

23,941
17,629

6,632
4,795

14,608
11,031

71,332
45,639

17,090
10,284

104,700
10,420
18,707
100,991

341,122
32,655
57,300
347,625

108,382
8,861
18,700
110,236

8,229
92,636
2,975

26,964
304,244
17,551

7,918
90,598
3,634

52,788
121.174
20,488

137,498
386,584
64,760

52,091
110,934
28,089

MINNESOTA—Duluth
First and Am. Nat’l
69,556
Northern Minn. Nat.
43,618
Minneapolis
First National ......
340,570
Marquette National..
38,602
Midland National ....
56,800
Northwestern Nat’l.. 354,070
St. Paul
Empire National ....
28,921
First National ......
309,172
Stock Yards Nat’l....
19,743
MISSOURI—Kansas City
City Nat’l B & T Co. 144,580
Commerce Tr. Co.... 389,902
Inter-State National
61,412

Northwestern Banker , J a n u a r y , 7950


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

December‘31.1948

December 31, 1949
St. Joseph

Loans
Deposits
Loans
23,209 $
6,428 $ 23,267 $
5,824
29,523
3,951
30,463
4,282

American National..!
First National .........
First St. Joseph
8,863
Stock Yards ........
Tootle-Lacy Nat’l....
21,695
St. Louis
First Nat’l .............
434,928
Mercantile Comm.
B & T Co..............
354,648
Mississippi Valley
Trust Co...............
211,399
N EBRASKA— Lincoln
Continental Nat’l ....
30,971
First National ........
48,767
Nat’l Bk. o f Com....
35,667
Omaha
Douglas Co. Bank..
8,645
85,162
First National .......
Live Stock Nat’l.....
59,859
Omaha National ....
149,529
South Omaha Sav...
2,216
23,658
Stock Yds. Nat’l.....
United States Nat’l
70,207
NEW YORK CITY
Bankers Tr. Co......
Bank o f Manhattan
Central Hanover
B & T Co..............
Chase National .....
Chemical B & T Co.
Guaranty Tr. Co....
Irving Trust Co......
Manufac’rs Tr. Co...
Nat’l City Bank.......
New York Tr. Co...
Public National .....

December 31.1948

Deposits

1,431,528
1,127,809

1,244
4,284

10,171
18,114

1,589
3,290

177,147

442,114

178,559

113,837

342,493

121,659

83,737

213,402

86,447

5,441
7,175
12,082

29,330
47,246
33,567

5,984
7,603
12,722

1,754
18.393
21.394
27,443
1,851
4,308
15,627

83,958
61,499
144,812
2,170
24,422
71,448

19,580
20,862
29,620
1,706
4,855
16,305

576,711 1,325,472
462,758 1,127,930

571,153
455,974

1,448,101
4,384,572
1,449,656
2,299,856
1,052,448
2,281,748
4,669,252
627,300
505,319

145,974
1,350,507
436,846
954,967
384,977
572,923
1,381,717
237,059
156,562

NORTH DAKOTA— Fargo
First Natl B & T Co...
25,269

6,519

25,058

5,042

6,588
6,199
10,950

23,318
18,056
43,643

6,313
5,263
11,009

102,931
27,893
380,894

431,000
278,446
1,619,817

107,770
33,327
418,458

SOUTH DAKOTA— Sioux Falls
First National .......
23,944
Nat’l Bk. o f S. D....
17,922
Northwest Sec. Nat.
43,745
CALIFORNIA— Los Angeles
California Bank .....
440,391
Farmers-Merchants
275,712
Security-First Natl. 1,602,888
San Francisco
American Trust Co. 937,432
Bank o f America..... 5,775,110
Crocker First Nati. 316,533
OTHER BANKS
First Wise. Nat’l,
Milwaukee ...........
530,921
Republic Natl., Dallas 339,871
Royal Bank of Can­
ada, Montreal ..... 2,192,140
Valley National of
Phoenix, Ai’iz......
224,876

1,400,785
432,451
4.237.000 1,482,834
1,435,190
560,799
2,330,237 1,034,441
1,113,182
429,048
2,223,383
623,902
4.643.000 1,422,000
642,398
256,426
515,990
140,307

374,736
927,884
377,497
:
2,804,522
5,639,523 2,807,070
77,100
320,275
84,158

90,297
150,529

520,790
311,745

97,646
172,436

653,267

2,067,489

657,457

104,721

230,427

120,697

29

S j/te

LIVE STOCK
'lA îm I îm u i/ BANK
UNION

STOCK

YARDS

• TELEPHONE

YArds

of'H iU c a g c
7-1220

Close of Business— December 30, 1949
RESOURCES
Cash and due from banks................. .....................$ 1 7 ,5 6 3 ,6 5 4 .0 7
U. S. Treasury securities
(Average maturity less than 18 months)...........................
2 7 ,6 1 6 ,1 2 2 .6 4
State and municipal securities
(Average maturity less than 2 years) .............................
1,7 5 0,2 3 1*0C)
Other marketable bonds..........................................
4 2 1 ,4 8 2 .2 3
Loans and discounts.................................................. 10,282,2 5 5.63
Federal Reserve Bank stock.......................»-..........
7 5 ,0 0 0 .0 0
Bank building..........................................................
2 5 0 ,0 0 0 .0 0
22 1,793.53
Interest earned, not collected................................
Current receivables and other assets.................
8 4 ,7 6 1 .7 0
T otal.................
$ 5 8 ,2 6 5 ,3 0 0 .8 6
L I A B I L I T I E S

Capital...........................................................................$ 1 , 000 , 000.00
Surplus............................................................................
1 ,5 0 0 ,0 00 .0 0
Undivided profits and reserves............................
4 1 9 ,2 7 0 .6 2
U n e a r n e d d i s c o u n t ........................................................
55,691.66
Liability under Letters of Credit.............................
3 ,0 00.00
D e p o s i t s ........................................- ................................... 5 5 , 2 8 7 , 3 3 8 . 5 8
Total..................................................................... T$ 5 8 ,2 6 5 ,3 0 0 .8 6
¿ ß v € i/ u /

(2 D t''ie o l< y i&

F red erick H e n r y P rince
O r v is T. H enkle
J ohn W. A u stin
Treasurer, The Union Stock Yard
& Transit Company

President,
The Mercury Manufacturing Company

I v a n E. B e n n e t t

H aro ld p . J o h n st o n
Vice President and Cashier

Vice-President

W illiam W ood P rince

J ames F. D o n o v a n

President, The Union Stock Yard
& Transit Company

Trustee, Central Manufacturing
District

T h o m as E. W ilson

G u y A. G lad so n

Chairman o f the Board
W ilson & Co., Inc..

W inston, Strawn, Shaw & Black

D a v id H. R eimers
President

SERVING

AGRICULTURE

AND

INDUSTRY

- J t 'i i e e
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

Northwest ern

Banker, J a n u a r y ,

1950

30

Itasi aoss luta vi to i aatiaav Hii/li
-j-H E new year begins on a note of
| optimism, The Northern Trust Com­
pany reports in its monthly bulle­
tin, Business Comment, but the long
term outlook is less hopeful because
of the passing of the crest of demand
for durable capital and consumer
goods and houses and also because of
the great expansion of mortgage and
installment credit.
“ The tenor of the statements of
business men and the concensus of
economists are strongly on the side
of a continued high level of output
and sales well into 1950,” the bank
states. Several factors are cited as

chiefly responsible for this. “Large
building contract awards during the
late fall assure a record volume of
construction work, seasonal influences
allowed for. In the steel industry,
heavy bookings are reported to re­
quire close to capacity operations for
some months. In the first part of
1950, the output of automobiles is
likely to exceed the same period of
1949. New models will stimulate de­
mand and a larger supply of steel will
permit higher production schedules
than last year.
“ The distribution to veterans of the
dividend on National Service Life In­

(ommercefrust (ompany9
Established 1865
Kansas City, Missouri
Member Federal Reserve System
Statement of Condition at Close of Business December 31, 1949
R E S O U R C E S
Cash and Due from Banks___________________ $136,273,151.97
U. S. Obligations, Direct and Fully Guaranteed, 111,258,730.74

$247,531,882.71

State and Municipal Bonds__________________ $ 33,299,164.57
Stock of Federal Reserve Bank_______________

540,000.00

Other Bonds and Securities----------------------------

9,681,713.29

43,520,877,86

Loans and Discounts_________________________________________ 121.174 471.72
Bank Premises ___ ________________________________________

1,697 389.87

Customers’ Liability Account Letters of Credit________________
Accrued Interest Receivable__________________________________

274,915.84
436,625.82

Overdrafts ---------------------------------------------------------------------------

2,682.96

Total Resources-------------------------- _-------------------------------- ,$414,638,846.78

LI ABI LI TI ES
Deposits:
U. S. Government--------------------------------------- $ 4,696,615.61
Other Deposits --------------------------------------

385,205,445.41

$389,902.061.02

Capital ------------------------------------------------------- $ 9,000,000.00
Surplus ----------------------------------------

9,000,000.00

Undivided Profits-----------------------------------------

5,657,254.61

23,657,254.61

Liability Account Letters of Credit___________________________

274.915.84

Accrued Interest, Taxes and Expense__________________________

778.195.64

Other Liabilities_____________________________________________

26 419.67

Total Liabilities -------------------------------------------------------------$414,638.846.78

M E M B E R F E D E R A L D E P O S IT

N o r t h w e s t e r n Banke r , J a n u a r y , 1950


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

IN S U R A N C E

C O R P O R A T IO N

surance, supplemented by large bonus
payments in some states, will augment
incomes by almost 3 per cent in early
1950. With a record number of new
dwellings being completed, the de­
mand for furnishings and household
equipment should remain high. The
war-created pent-up demands for con­
sumer durables and for new automo­
biles appear to have been filled, but
the industries are now experiencing
the wide dimensions of a market cre­
ated by full employment. The hurdle
of high prices required by high labor
costs continues to be overcome by the
presence of a large volume of liquid
assets, by heavy government expendi­
tures and cash payments at home and
abroad, and, increasingly, by the easy
credit terms that facilitate purchases.”
The accelerated use of mortgage and
consumer credit is perhaps the surest
indication that demands cannot con­
tinue at present levels indefinitely, the
bank says. The forces that this coun­
try may depend upon to overcome
cyclical influences in major durable
expenditures, the bank emphasizes,
are the exercise of restraint during
the boom, physical and technological
growth and the spirit of free enter­
prise.
“ An economy of private property
and individual choice is tremendously
strong, with four million businesses
competing to find something to sell
to the public at a profit and with each
individual working to better his sta­
tion in life. Under these conditions
a depression, and particularly a se­
vere and long lasting one, is an ab­
normality rather than an inherent
weakness. The great danger is that
remedies may be applied that will
damage the incentives that are the
mainspring of our system.”

Third Term Office
James L. Sharp, manager, foreign
department, First National Bank in
St. Louis, has been elected to a third
term as treasurer of the Export Man­
agers’ Club of St. Louis, Inc. Mem­
bers of the club are interested in for­
eign. trade, including transportation,
insurance and banking.
Last year the St. Louis area han­
dled a volume of about 200 million
dollars in foreign business, made up
of approximately 125 million dollars
in exports and 75 million dollars in
imports.

Dividend
The board of directors of Manufac­
turers Trust Company, New York, has
declared the regular quarterly divi­
dend on the bank’s capital stock in
the amount of 60 cents per share, pay­
able January 15, 1950, to stockholders
of record December 15, 1949.

31

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T HE

FI RST


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Federal Reserve Bank of St. Louis

NAME

IN

TYPEWRI TERS
Northwest ern

Banker, J a n u a r y ,

1950

32

Y ea r-E n d In vest num i S u rr ey

ferings are quite possible in the future.
"In the tax-exempt field, heavy vol­
near their 1949 level,” the survey ume is anticipated,” the survey con­
pointed out. “As with the utilities, a tinued. “ The apparent willingness of
decline in railroad equipment finan­ voters to approve bond issues, dem­
cing may also be offset by refundings. onstrated by authorizations in Novem­
Industrial financing will continue to ber’s elections, could bring 1950’s of­
be placed privately and will decrease ferings of state and municipal bonds
in amount.
close to the 1949 total. Add to this
“ The World Bank will go into the volume the Housing Authority issues
market with a refunding offering of and a substantial increase in tax-ex­
$100 millions, its first public financing empt offerings is probable. With little
since the initial 1947 issues of $250 likelihood of any reduction in taxes,
millions. While financing by the fed­ and the probability that tax exemption
eral government has been by way of will become more limited, tax-exempt
the short term market, long term of­ bonds will continue to be in demand.
“ In general,” Halsey, Stuart noted,
“the biggest demand for corporate
bond offerings will continue to be that
of insurance companies and banks.
The demand undoubtedly will be aug­
mented by the requirements of pen­
sion funds, requirements which may
very well become tremendous.
“According to the supply-demand
equation, bond prices should continue
steady with a tendency to advance.
This projection is bolstered by the
probability that prices for long-term
governments will remain around pres­
ent levels.”

PROBABLE substantial increase
in tax-exempt bond offerings, a
A
volume of utility and railroad finan­
cing near the 1949 level, and a decline
in industrial bond issues were pre­
dicted for 1950 by Halsey, Stuart &
Company, Inc., in its annual Year-End
Bond Survey for 1949.
“ The total new money requirements
of the utilities, including the gas and
telephone companies, are likely to be
lower, but it is possible that refund­
ings in 1950 of issues now outstanding
will bring the total utility offerings

S T A T E M E N T

OF

C O N D I T I O N
Edgar E. Mountjoy Retires

DECEMBER 31, 1 9 4 9
RESO U RCES
C a s h a n d D u e fro m B a n k s

.

U. S . G o v e rn m e n t B o nd s .
O th e r

Bonds

.

.

S e c u r it ie s

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

D i s c o u n t s ..............................

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

B u i l d i n g s .............................................

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

Loans an d
Bank

and

$

.

F u r n itu r e
A ccru e d

and

F ix t u re s

.

.

In te re s t R e c e iv a b le

.

.

Edgar E. Mountjoy, deputy manager
of the American Bankers Association
and for thirty years in charge of its
National Bank Division, has retired.
Mr. Mountjoy was also in charge of
the association’s Retirement Pension
Plan Studies.

6 6 2 , 7 3 6 .0 2

.

9 3 6 , 1 4 8 .9 4

C u s t o m e r s L ia b ilit y o n L / C

4 3 3 , 2 2 0 .2 9

O th e r

4 6 7 , 3 4 0 .8 3

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

T o ta l R e s o u r c e s .

TO th itir t h tin y

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

L IA B IL IT IE S
D e p o s i t s .............................................
U n e a rn e d

D is c o u n t

.

.

.

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

1 ,9 4 7 , 2 5 1 .9 6

L e tt e r s o f C r e d i t ......................................
R e s e r v e s fo r T a x e s , In te r e s ts , e tc

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

C a p ita l Fu n d s
P r e f e r r e d S to c k

.

Com m on

S to c k

.

3 ,2 5 0 , 0 0 0 .0 0

S u r p lu s

.

.

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

.

$

7 0 0 , 0 0 0 .0 0

U n d iv id e d P ro fits

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

R e se rv e s

1 , 3 2 5 , 0 0 0 .0 0

.

.

T o ta l L ia b ilitie s

.

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

HOM E O F F IC E

PH O EN IX , A R IZ O N A

Jlasuj&U Ba+vk ¿n ¿lie, (locJiy M(u**tlcu+i Stated

VALLEY NATDONAL BAN IK.
G LEN D A LE
MIAMI

TO LLESO N

S U P E R IO R

SA FFO RD

K IN G M AN

MEMBER

OF

W IC K E N B U R G

C O O L ID G E

L I T C H F IE L D P A R K

THE

FEDERAL

N o r t h w e s t e r n Banker, J a n u a r y ,


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Federal Reserve Bank of St. Louis

P H O E N IX

TU CSO N

DO U GLA S

7950

CASA GRAN DE

G LO B E
A JO

M OREN CI

DEPOSIT

M ES A

C L IF T O N
N O G A LES

INSURANCE

SU N N Y SLO P E
PRESCO TT
W IN S L O W

H A YDEN
C H A N D LER
W IL L C O X

CORPORATION

Mrs. Eva H. Kimball, dean of
women at the City National Bank
and Trust Company of Chicago, was
honored by the officers and other
personnel on the occasion of her 70th
birthday.
General Charles G. Dawes, right,
chairman of the board, was present
during the open house when Philip
R. Clarke, left, president of the bank,
presented Mrs. Kimball with a tele­
vision set.

33

F irst W isconsin
N a t io n a l

B a n k

o f M ilw a u k e e

Statement of (Condition as of December Jlsk, I ç¿¡.ç
d ir e c to r s
W

illiam

G. Brumder

Senior Vice President
W

illiam

M errill Chester

President,
T. A. Chapman Company

RE SOURCE S
Cash and Due from Banks....................................

$147,506,291.45
321,159,012.76 $468,665,304.21

U. S. Government Securities..................................

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

18,354,583.84

Stock in Federal Reserve Bank............................... ........................

600,000.00

E. J. D empsey
Attorney, Oshkosh

Loans and Discounts.................................................. .........................

90,296,980.69

W

Accrued Income Receivable.............................................................

1,334,914.95

Bank Buildings and Equipment........................... .........................

3,344,849.65

Other Resources.......................................................... .........................

2,044,050.81

alter

G eist

President,
Allis-Chalmers Mfg. Co.
Joseph F. H eil

President, The Heil Co.
W

alter V. Johnston
Industrialist

W

alter

K asten

$584,640,684.15

LI ABI LI TI ES
C a p ita l...........................................................................

$ 10,000,000.00

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

10,000,000.00

Undivided Profits.................................... ................

9,158,860.22

Robert E. Pabst

Special Reserves (includes amount sufficient
to am ortize U . S. G o vern m en t and all
other securities to p a r ).......................................

9,872,838.02 $ 39,031,698.24

Cyrus L. Philipp

Reserve for Interest, Taxes, Expenses, Etc.. . . .........................

President
G eorge E. Long

President, Koehring Co.
Ernst M ahler

Executive Vice President,
Kimberly-Clark Corp.

President,
Union Refrigerator Transit Co.
H arold H. Seaman

Industrialist
Lawrence F. Seybold

D e p o sits ........................................................................

530,920,793.73

W a r Loan Deposit Account..................................

11,923,900.77

Other Liabilities.......................................................... .........................

Executive Vice President,
Wisconsin Electric Power Co.
W

m.

Charles O. T homas

President,
Pal-O-Pak Insulation Co.

Joseph E. U ihlein , Jr .

Vice Presidents

Banker
Robert A. U ihlein , Jr.

Vice President,
Jos. Schlitz Brewing Co.
W

illiam

Carl M. Flora
Pierre N. H auser
W illiam J. K lumb
Edwin R. O rmsby

Edwin Buchanan
G eorge T. Campbell
D. W esley Correll
Edward R. D roppers

President,
Appliance Corp. of America
Robert A. U ihlein

1,754,116.39
$584,640,684.15

T aylor

President,
Jos. Schlitz Brewing Co.

542,844,694.50

President, W alter K asten
Executive Vice President, W m . T aylor
Senior Vice President, W illiam G. Brumder

Executive Vice President

Erwin C. U ihlein

1,010,175.02

John S. O w en
Chester D. Raney
Joseph W . Simpson , Jr.
Robert A. Z entner

Comptroller, Clarence H. Lichtfeldt
UNPARALLELED STATEWIDE SERVICE
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.

D. V ogel

Real Estate and Investments


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Federal Reserve Bank of St. Louis

M E M B E R

F E D E R A L

D E P O S I T

I N S U R A N C E

C O R P O R A T I O N

Northwestern Banker, January, 1950

34

Northern Trust Company
Net earnings of The Northern Trust
Company, Chicago, for the year ended
December 31, 1949, after expenses,
taxes and additions to reserves, were
$1,085,429,32 compared with $1,021,213.04 in 1948. Dividends of $540,000
were paid and $545,429.32 was added
to undivided profits.
Earnings amounted to $36.18 per
share as compared with $34.04 in the
previous year. The earnings on aver­
age capital stock, surplus and undi­
vided profits were equivalent to 5.09
per cent compared with 4.89 per cent
last year.

Deposits at the year end amounted
to $653,398,075.02 compared with total
deposits of $656,262,273.77 at the end
of last year.

First National, Minneapolis
Directors of First National Bank of
Minneapolis, at their year-end meet­
ing, voted a $3,000,000 increase in the
bank’s surplus, raising its total of
capital and surplus to $20,000,000.
In addition to the surplus increase,
Henry E. Atwood, First National presi­
dent, also announced the promotion of
several officers. In the banking de­
partment, Victor F. Rotering, M. O.

Grangaard and Guy W. LaLone were
advanced from vice president to the
newly-created position of senior vice
president.
Associated with the First National
since 1908, Mr. Rotering has served
since 1929 as vice president. Mr.
Grangaard joined the bank’s staff in

STATEMENT OF CONDITION DECEMBER 31. 1949
RESOURCES
Cash and Due from Banks . . . .
U. S. Government Securities
State, Municipal and Other Securities .
Stock in Federal Reserve Bank .
Loans and D iscounts.............................
Bills of Exchange and Commodity Loans
Bank Premises and Equipment .
Real Estate for Bank Expansion
Acceptances — Customers Account
TOTAL

. . . .

$114,591,708.63
63,432,228.30
2,965,594.37
750,000.00
150,529,676.98
33,697,881.68
2,344,024.04
2,314,923.23
7,446,282.13
$378,072,319.36

LIABILITIES

Capital
Surplus

. . . .
. . . .

$ 12,000,000.00

13,000,000.00
Undivided Profits.........................................
Reserve for C o n tin g e n cie s.......................
Reserve for Taxes, etc..................................
Acceptances — Customers Account
Deposits:
Individual . . . $214,303,231.05
Banks
. . . .
122,005,318.38
U. S. Government .
3,562,296.17
TOTAL

339,870,845.60

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

DALLAS

M EM B ER 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

hwest ern Banker, January, 1950
Digitized forNort
FRASER

1923, and six years later was elected
vice president in the department of
banks and bankers. Mr. LaLone, vice
president in charge of offices and affili­
ates, began his career with the First
National in 1921, and previously was
with the Minnehaha State Bank. In
addition to their positions at First
National, Mr. Rotering is president of
First Hennepin State Bank and Mr.
LaLone is president of First Minne­
haha National Bank and First Produce
State Bank. Mr. Grangaard also is
a director of First Edina State Bank.

New Vice President
$ 25,000,000.00
2,400,218.25
2,500,370.86
854,602.52
7,446,282.13

$378,072,319.36

of

M . O. G R A N G A A R D
Now Senior V ice President
First N ational, M inneapolis

Guaranty Trust Company of New
York announces the appointment of
Kent G. Colwell as a vice president.
Associated with the bank since 1919,
he continues with the foreign depart­
ment at the main office, where he has
served successively as assistant man­
ager and second vice president since
1926. Prior to 1926 he served in official
capacities in the bank’s branches in
Europe.

Supervisor
The Royal Bank of Canada an­
nounces the appointment of Thomas
F. Whitley as supervisor of the bank’s
233 branches in Ontario. He succeeds
S. A. Duke who has been the bank’s
Ontario supervisor since 1941. C. L.
Walker has been appointed to succeed
Mr. Whitley as manager of the bank’s
main Toronto branch.

35

Continental Illinois National Bank
and Trust Company of Chicago
BOARD OF DIRECTORS

Statement o f Condition, December 3 1 ,1 9 4 9

W ALTER J. C U M M IN G S
Chairman

R E SO U R C E S

J. Q . A D A M S
Real Estate

Cash and Due from Banks............................ $ 671,839,584.51

CARL A . BIRDS ALL

United States Government Obligations. . 1,394,028,594.11

President

C H A U N C E Y B. BORLAND
Managing Owner, Borland Properties

D. A . CRAW FORD
President, Pullman Incorporated

EDW ARD A. C U D A H Y
Chairman o f the Board, The Cudahy Packing
Company

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

100,843,486.84

Loans and Discounts.......................................

361,653,124.16

Stock in Federal Reserve Bank.....................

4,800,000.00

Customers’ Liability on Acceptances. . . .

2,434,750.51

Income Accrued but Not Collected..........

7,906,851.27

Banking H o u s e .................................................

9,600,000.00

JO H N F. CU N EO
President, The Cuneo Press, Inc

M ARSH ALL FIELD

$2,553,106,391.40

President, Sun and Times Co.

LAW RENCE P. FISHER
Director, General Motors Corporation

CHARLES Y . FREEMAN

L IA B IL IT IE S

Chairman, Commonwealth Edison Company

Deposits .........................................................$2,348,174,295.69

JAMES R. LEAVELL
Banker

W IL L IA M H . MITCHELL
Partner, Mitchell, Hutchins 3C Co.

Acceptances .................................................

2,434,/50.51

Reserve for Taxes, Interest, andExpenses

8,123,849.54

President, Standard Oil Company (Indiana)

Reserve for Contingencies..........................

18,106,473.71

H . A . SC A N D R ETT

Income Collected but Not Earned............

376,569.89

Capital Stock ...............................................

60,000,000.00

McCormick Estates

S u rp lu s..........................................................

100,000,000.00

FRANK F. TA Y L O R

Undivided P ro fits........................................

15,890,452.06

A . W . PEAKE

Railroad Executive, retired

JU D SO N F. STO N E

Vice President

H ERM A N W A LD E CK

$2,553,106,391.40

Executive Vice President

R. L. W IL L IA M S
President, Chicago and North Western
Railway System

CHARLES D. W IM A N
President. Deere 8i Company

United States Government obligations carried at #255,416,479.62
are pledged to secure public and trust deposits and for other
purposes as required or permitted by law
M em ber Federal Deposit Insurance Corporation

You are invited to use the facilities of our Bond Department
to meet your investment requirements for United States


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

Government, State, and Municipal securities.
Northwestern Banker, January, 1950

36

Volume Over $75,000,000

Guaranty Trust Company of New York
140 Broadway
Fifth Ave. at 44th St.

Madison Ave. at 60th St.

___________________________ L O N D O N

•

P A R IS

•

Rockefeller Plaza at 50th St.
BRU SSELS

Clarence L. Landen, president and
general manager of the Securities Ac­
ceptance Corporation of Omaha, re­
ports a very prosperous year for his
organization in the fiscal period ending
September 30, 1949. “ The business of
the company,” says Mr. Landen, “ con-

Condensed Statement of Condition, December 31, 1919
RESOURCES
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and B an k ers........................................ $ 5 8 6 ,9 7 3 ,4 4 4 .9 1
U. S. Government O b l i g a t i o n s ........................................
1 ,0 8 8 ,0 7 2 ,3 9 9 .7 3
Loans and Bills P u r c h a s e d ...............................................
9 5 4 ,9 6 7 ,5 7 1 .1 2
Public S e c u r i t i e s .......................... $
5 4 ,8 4 6 ,5 0 0 .4 3
Stock o f Federal Reserve Bank .
9 ,0 0 0 ,0 0 0 .0 0
Other Securities and Obligations .
7 ,4 1 0 ,5 3 4 .0 0
Credits Granted on Acceptances .
9 ,6 1 3 ,9 5 6 .1 4
Accrued Interest and Accounts
R eceivable.......................................
9 ,1 8 0 ,9 8 9 .2 5
Real Estate Bonds and Mortgages
5 ,3 8 5 ,1 9 7 .8 9
9 5 ,4 3 7 ,1 7 7 .7 1
5 ,0 8 3 ,0 6 7 .7 8
4 1 ,3 0 2 .8 6

Bank P r e m i s e s .........................................................................
Other Real E s t a t e ..................................................................

Total R e s o u r c e s ........................................... $ 2 ,7 3 0 ,5 7 4 ,9 6 4 .1 1
LIABILITIES
CaP > * a l ..............................................$
Surplus F u n d .................................
Undivided Profits . . . .

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

Total Capital F u n d s ..................................................... $ 3 7 0 ,5 6 8 ,4 8 2 .5 4
D e p o s i t s .............................................. $ 2 ,2 6 7 ,4 1 6 ,9 4 7 .2 6
Treasurer’s Checks Outstanding .
3 2 ,4 3 9 ,0 5 1 .7 4
Total D e p o s i t s .......................... ......
! .
! 7 2 ,2 9 9 ,8 5 5 ,9 9 9 .0 0
A c c e p ta n c e s ........................................$
1 8 ,0 8 9 ,2 6 4 .3 1
Less: Own Acceptances Held for
7 ,5 9 8 ,8 3 6 .5 7
I n v e s t m e n t ..................................
^
,
$
Dividend Payable January 3, 1 9 5 0 :
Regular '. .
$ 3 ,0 0 0 ,0 0 0 .0 0
Extra . . .
2 ,0 0 0 ,0 0 0 4 )0
Items in Transit with Foreign
B ran ch es.
1 ,7 2 4 ,7 0 3 .3 8
Accounts Payable, Reserve for
Expenses, Taxes, etc. . . .

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

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

Total Liabilities

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

Securities carried at $118,968,756.80 in the above Statement are pledged to qualify for
fiduciary powers, to secure public moneys as required by law, and for other purposes.

J. LU T H E R C LE V E L A N D
Chairman of the Board

W IL L IA M L. K L E IT Z
President

DIRECTORS
G EO RG E G. ALLE N
Director, BritishAmerican Tobacco Company, Limited, and
Chairman of the Board, Duke Power Company
W IL L IA M B. BELL
President,
American Cyanainid Company
I . V . CHARSKE
Chairman, Executive
Committee, Union Pacific Railroad Company
J- LI' I H ER C L E V E L A N D Chairman of the Board
W . PALEN C O N W A Y
C H A RLES P. COOPER
President,
The Presbyterian Hospital in the City of New York
W IN T H R O P M . C R A N E , Jr.
President,
Crane & Co., Inc., Dalton, Mass.
ST U A R T M . C R O CK E R
President,
The Columbia Gas System, Inc.
JOHN W . D A V IS
of Davis Polk Wardwell
Sunderland & Kiendl
C H ARLES E. D U N L A P
President,
Berwind-White Coal Mining Company
CANO D U N N
President,
I he J. G. White Engineering Corporation
W A L T E R S. F R A N K L IN
President,
The Pennsylvania Railroad Company

LE W IS G A W T R L
JOHN A. H A R T ! ORD
Chairman of the Board,
The Great Atlantic & Pacific Tea Company
CO R N E LIU S F. K E L L E Y Chairman of the Board,
Anaconda Copper Mining Compan>
M O RR IS W . KELLO GG
Chairman of the
Board, The M . W . Kellogg Comj»any
W IL L IA M L. K L E IT Z

W IL L IA M C. PO TTER
G EORGE E. R OOSEVELT

Northwestern Banker, January, 1950

Retired
of Roosevelt & Son

E U G E N E W . STETSO N
Chairman, Executive
Committee, Illinois Central Railroad Company
I H OM AS J. W AT SO N
Chairman of the Board,
International Business Machines Corporation
CHARLES E . W ILSON

President, General
Electric Company

R O B ER T W . W O O D R U FF
Chairman,
Executive Committee, The Coca-Cola Company

M em ber Federal Deposit Insurance Corporation


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Federal Reserve Bank of St. Louis

President

CH ARLES S. M U N SO N Chairman of the Board,
Air Reduction Company, Inc.

C L A R E N C E L. L A N D E N
“ Largest in H istory of the C om pany”

tinues to consist primarily of purchas­
ing from dealers’ instalment notes re­
ceivable acquired in the sale of auto­
mobiles and other consumer durable
goods on the time sales financing plan,
and in extending personal loans to
individuals. During the year, the to­
tal volume of business transacted
amounted to $75,716,951.07, as com­
pared to $70,918,386.81 for the previous
year. The volume of business han­
dled by the company during the fiscal
year represented an increase of 6.77
per cent over the volume of the pre­
vious year, and was the largest in the
history of the company.
Automobile production in 1949 has
broken all previous records. It is
quite likely that automobile produc­
tion and sales during 1950 will not
equal the record of 1949, which may
affect the volume of automobile time
sales paper available to the company.
On the other hand, it is expected that
a larger percentage of new cars will
be sold on the installment plan. To
what extent the factor of reduced vol­
ume possibilities will be offset by the
increased demand for time sales finan­
cing is quite indeterminable. Perhaps
the net result will be a volume of
business for our company in the 1950
fiscal year about equal to that which
we have enjoyed during the past
year.”

American National, Chicago
Nineteen hundred forty-nine was a
satisfactory and active year for Amer­
ican National Bank and Trust Com­
pany of Chicago during which the
bank increased its surplus and ex­
panded its quarters, Lawrence F.
Stern, president, announced recently
in his annual report to stockholders.
The bank’s net earnings for the year

41

New Board Member
John M. Olin, president of Olin In­
dustries, Inc., of East Alton, Illinois,
has been elected to the board of direc­
tors of Bankers Trust Company, New
York, it was announced by S. Sloan
Colt, president.
Mr. Olin, a graduate of Cornell, is

gent will have his desk at the First
National and will continue to visit the
bank’s friends around the country.
Fred B. Tedford became associated
with the Union Trust Company in
1922, and came to The First National
Bank of Chicago at the time of the
merger of the Union Trust Company
with the First National in 1929. He
was an assistant vice president in the
foreign banking department.

American Trust,
San Francisco
Deposits of American Trust Com­
pany on December 31st totaled $937,432,332.12, as compared with $927,883,-

TF

808.36 for the corresponding date in
1948.
Loans and discounts totaled $374,736,073.31, as compared with $377,496,804.78 on December 31, 1948. Total re­
sources stood at $992,288,273.96.
Net operating earnings for the year
1949, after amortization of securities
and provision f o r income taxes,
amounted to $4,325,910.11, as compared
with $3,652,664.10 for the previous
year. Dividends declared during 1949
amounted to $1,238,736.50. Capital,
surplus and undivided profits at the
end of 1949 amounted to $39,942,401.55
as compared with $37,760,654.58, an in­
crease of $2,181,746.97.

r COM
ST , L O U IS

J O H N M . O L IN
On Board of
Bankers Trust, N ew York

a director of the St. Louis Union Trust
Company, Midwest Rubber Reclaim­
ing Company, Illinois Terminal Rail­
road Company, and is a member of the
Board of Washington University.

Retirements at First National
Bentley G. McCloud, president of
the First National Bank of. Chicago,
having passed the retiring age of 65,
retired as president following the an­
nual stockholders’ meeting on January
10th. He will continue as a director
of the bank and as a member of the
executive committee, so that his ex­
perience and knowledge will still find
expression in the bank’s councils. Mr.
McCloud originally went to work for
The First National Bank in 1903.
Irvin L. Porter entered the employ
of the bank in 1901 as a clerk. He
was elected manager of the bond de­
partment in 1919, assistant vice presi­
dent in 1923, vice president in 1925,
and director in 1945. He will continue
as a director of the bank.
Thomas J. Nugent began his bank­
ing career in 1901 as a messenger with
The First National Bank and received
his early training in various depart­
ments of the bank. He was elected
assistant vice president in 1920, and
vice president in 1931. He has been
a member of the banks and bankers
division for nearly 20 years. While
retiring from active service, Mr. Nu­

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

a
Statement of Condition, December 31, 1949
RESOURCES
Cash and due from b a n k s .....................................................$ 64,598,240.16
U. S. Government Securities 68,604,322.69
(Including those pledged $12,544,164.99)
Other Bonds and S e c u r it ie s ...............................................
8,917,417.63
Federal Reserve Bank S t o c k ...............................................
300,000.00
Loans and D is co u n ts ...............................................................
83,737,675.25
Customers' Liability on Acceptances and
Letters of C r e d i t ...............................................................
287,290.19
Bank B u i l d i n g ..........................................................................
1,344,511.95
Other Real E s ta te ....................................................................
1,856.46
Accrued Earnings Receivable ( n e t ) ................................
366,944.51
Overdrafts
...............................................................................
25,084.35
Other R e s o u r c e s ....................................................................
159,143.43
$228,342,486.62

LIABILITIES
Capital
..................... .............................................. - - - $
Surplus and Undivided P r o f i t s ..........................................
Reserve for Taxes, Interest, e t c . .....................................
Acceptances and Letters of C r e d i t .....................................
Other L i a b i l i t i e s ....................................................................
Deposits:
U. S. Government, and other
Public Funds
................................$ 14,662,226.98
Other Deposits
................................
196,736,713.43

6,000,000.00
9,652,747.28
648,618.63
287,290.19
354,890.11

211,398,940.41
$228,342,486.62

Member Federal
Deposit Insurance
Corporation

94 Years of
Banking
Experience

Nort hwest ern Banker, January,

1950

42

DEAR EDITOR
(Continued from page 13)

O P E R A T IO N ELB O W R O O M
This month our St. Paul plant moves
into new quarters. Just completed is a
nice, one-story structure containing
43,000 square feet and, qualitatively, on
a par with our Chicago and Kansas
City buildings.
Despite several additions constructed
during twenty-seven years o f occupancy,
we finally outgrew our old building
and, while we leave it with reluctance,
we are happy to get off each other’s
shoulders and have room to stretch.
Needless to say, we invite any bankers
to visit us when they are in the Twin
Cities . . . and especially on Saturday,
February 18th, when we will have our
formal opening.
As a part of our building program we
plan to break ground for a new small
plant in Paoli, Pennsylvania, which is
much needed to relieve our New York

plant. Later on, perhaps in 1951, we
hope to build another small unit near
Boston, also needed to take some of
the load off New York.
W e do not look upon these projects
as constituting an expansion program,
but rather as a decentralizing of manu­
facturing operations in the interest of
dependable service. During the war we
learned the importance of the multiple
plant setup, when on many occasions
we switched orders to speed up service.
As more and more banks encourage
their customers to use imprinted checks,
the question of fast, professional service
will become paramount. We will be
ready with experienced people, special­
ized machinery and well-built plants.
Whether you send us one order, or a
hundred thousand, we will continue to
provide topnotch service.

"Of Primary Importance"
“ I was very interested in looking over
your new survey entitled, ‘What Do You
Want From Your Correspondent Bank?’ It
certainly reveals the things of primary im­
portance in dealing with correspondent ac­
counts, which is very beneficial for all of us
who are servicing this type of an account.”
Titos. J. McCullough, Vice
President, First St. Joseph
Stock Yards Bank, St. Jo­
seph, Missouri

"Certainly Interesting"
“ This is to compliment you and the
N o r t h w e s t e r n B a n k e r , upon your recent
survey in the December issue entitled, ‘What
Do You Want From Your Correspondent
Bank V
“ It certainly is very interesting and I will
see that the article is called to the attention
of our correspondent bank officers.”
IF. M. Sherrill, Advertising .
and Publicity Manager, The
First National Bank, St.
Louis, Missouri

"Splendid Job"

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CANADA’ S OIL FIELDS
The Royal Bank of Canada can answer your customers’
questions about Western Canada’s fabulous oil develop­
ment whether they are interested in oil financing or
wish sound advice on establishing business connections
in Canada. Branches of the Royal Bank have been lo­
cated in Turner Valley, Leduc, Devon and Red water
oil fields since the earliest days.
Address enquiries to
E. B. Durham, Supervisor,
The Royal Bank of Canada
Calgary, Alberta
C A N A D A ’S " O I L " B A N K
55 br anc hes in A lb e r ta , the
"oi l" p r o v i n c e . O v e r 7 20
br anc hes in C a n a d a , the W e s t
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A m e r i c a . New York, London
and Pa ris. H e a d Office, M on ­
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Assets exceed

Nort hwest ern Banker, January, 1950


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

“ I can’t refrain from telling you what an
unusually fine issue the December number
of the N orthwestern B anker is. In addi­
tion to many other good qualities, it cer­
tainly reflects the holiday spirit.
“ You are doing a splendid job and again
I congratulate you.”
Joseph Same, Manager Pub­
lic Relations Dept., Commer­
cial National Bank 4 Trust
Co., New York, New York

THE
ROYAL
BANK
OF

CANADA
$ 2 ,2 2 2 ,0 0 0 ,0 0 0

“ Your article in the December issue of
the N orthwestern B anker on ‘What Do
You Want From Your Correspondent Bank?’
is the best arranged article on this subject
that I have seen, and I would like very
much to have a dozen extra copies to dis­
tribute among my associates whose duties
are the solicitation of correspondent bank
connections.”
J. C. Frost, Second Vice
President, Chase National
Bank, New York, New York

California Bank
Election of E. M. Carver to assist­
ant vice president and David S. Lockie
to assistant secretary has been an­
nounced by Frank L. King, president
of California Bank. Mr. Carver has
been a member of the bank’s staff
since 1928 and two years ago was as­
signed to the La Brea-Wilshire Office
as manager, where he will continue as
assistant vice president and manager.
Mr. Lockie of the real estate loan de­
partment staff has been with the bank
twenty years. During the war he
served as captain in the Army Fi­
nance Division for four years.

43

lipiiter Credit and

Continental Illinois
At a regular meeting of the board of
directors of Continental Illinois Na­
tional Bank and Trust Company of
Chicago on December 27th, the sur­
plus account of the bank was increased
to $100,000,000 from $90,000,000 by
transferring $10,000,000 from undi­
vided profits. Capital stock remains
at $60,000,000.

W holesale Lines
By E. A. THOMPSON, Executive Vice President
Securities Acceptance Corporation, Omaha
OST dealers require financial as­
sistance to carry an adequate in­
ventory, and to render a complete
financing service we must be prepared
to extend wholesale credit to dealers.
If this type of financing is not thor­
oughly understood and handled prop­
erly, it will cause a lot of headaches
and result in severe losses for the
finance company. Even with complete
knowledge you can’t escape some trou­
ble and losses if you do a sizable vol­
ume of this kind of financing.
The handling of wholesale credit can
be divided into four principal proce­
dures, which are:
1. The adoption of a sound over-all
policy.
2. The selection and approval of the
dealer for credit.
3. The acquisition of floor-plan re­
ceivables.
4. The policing of these receivables
once they are on the books.
Extension of wholesale credit has
always been the most hazardous type
of financing for the finance company.
Larger amounts of money can be lost
faster on wholesale than on any other
type of receivable. However, if whole­
sale credit is properly handled by in­
telligent and experienced personnel,
losses in this type of receivable should
not be more than normal. When
losses are abnormal, it is generally
because the danger signs were not
recognized and obeyed.
There are many more dollars in­
volved in each unit of wholesale today
than ever before in the history of our
industry. We will soon be doing busi­
ness with a dealer body which as a
whole is steadily becoming worth less
and less financially—not individually
but collectively.

M

Security Dealers Elect
The annual election in District No.
8 of the National Association of Se­
curities Dealers, Inc., comprised by
the states of Illinois, Iowa, Indiana,
Michigan, Nebraska and Wisconsin,
has resulted in one new governor and
four new members of the district com­
mittee.
Clarence A. Bickel, partner of Rob­
ert W. Baird & Company, Milwaukee,
has been elected to the national board
of governors.
Vern S. Bell, president, Bell & Far­
rell, Inc., Madison, Wisconsin: Harry
G. Williams, vice president, Quail &

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

Company, Davenport, Iowa; Joseph
E. Dempsey, president, Dempsey &
Company, Chicago, Illinois, and Ed­
ward C. George, vice president, Harriman, Ripley & Company, Incorporated,
Chicago, Illinois, are the new members
of District Committee No. 8. Those
retiring are: Clarence A. Bickel, Mil­
waukee; Michael D. D e a r t h , Des
Moines; Paul L. Mullaney, Chicago,
and P. A. Walters, Chicago.

Chase Promotions
Promotions and appointments on the
official staff of the Chase National
Bank, New York, were announced by
Winthrop W. Aldrich, chairman of
the board, as follows:
Charles Cain, Jr., vice president and
executive officer of the foreign depart-

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Nort hwest ern Banker, J anuars , 1950

44

ment, and Thomas H. McKittrick, vice
president, were appointed senior vice
presidents of the bank.
David Rockefeller, Einar C. Funck
and Otto T. Kreuser, second vice presi­
dents in the foreign department, were
promoted to vice presidents. Also ap­
pointed vice presidents were Woodruff
Johnson of the commercial banking
department, Edgar H. Hall of the
branch administration department,
and John D. Revene in charge of the
bank’s Times Square branch.

Named Chairman
William A. McDonnell, president of
the First National Bank in St. Louis,
has been elected chairman of the board
of directors of the St. Louis Chamber

of Commerce. Mr. McDonnell had
been vice chairman of the Chamber
of Commerce directors, and is active
in many other civic enterprises. He
served as general chairman of the
1947-48 St. Louis Community Chest
campaign.

New Service
A new service for correspondent
banks has been inaugurated by City
National Bank & Trust Company of
Kansas City, Missouri, in the form of
a mailing card issued by its foreign
department giving valuable current
information to those interested in for­
eign commerce.
The card is mailed every two weeks,
or oftener when the situation requires,

and gives selling rates for drafts paj
able in foreign currencies, buying
rates for foreign currencies, quotations
on pound sterling futures, quotations
on bonds of the International Bank
for Reconstruction and Development
and other current information on for­
eign exchange. This service may be
received by writing the foreign de­
partment of City National Bank.

Nine New Members Join
The Twenty-five Year Club of
George La Monte & Son, Nutley, New
Jersey, welcomed nine new members
at the annual dinner for the combined
Twenty-five and Twenty Year Clubs.
George V. La Monte, president of
the company, presented a handsome
gold watch and a diamond studded
membership button to each of the new
members.
There are now 69 members in the
Twenty-five Year Club and the total
membership of the two clubs numbers
127, all of whom have been in La
Monte employ for twenty years or
more.

Ail Lighted Up
The First National Bank of Chicago
has just completed a project which
converted a previously poorly-lighted
area around its building into one with
illumination comparable to that of
State Street a short block away.
The project involved three separate
installations. The first consists of 13
double-light standards on the side­
walk at the curb on three sides of
the building. The standards are 17
feet six inches high and each has
two lamps of 1,000 watts each.
The second installation is that of
reproductions of the bank’s painted
outdoor bulletins placed in the two
display windows at Dearborn and Mon­
roe Streets. These displays, with the
name of the bank in raised golf-leaf
letters on a white background and the
bank emblem and other embellish­
ments lighted with neon, are flood­
lighted by eight fluorescent lamps
which reflect light from the signs for
a considerable distance on the side­
walk.
The third installation is a vertical
neon sign, First National Bank. The
background of the sign is 106 feet high
by two feet wide, with two-color por­
celain running from the fourth floor
to the fifteenth floor levels. Four-foot
porcelain enameled letters with an
average width of three feet are in­
stalled on the face of the vertical
background.

Foresight and Hindsight
Business prophets tell us what is go­
ing to happen; business profits tell us
what happened.
Nort hwest ern Banker, January, 1950


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

45

W hat Women Stunt hi
Know A bout Hanking
(Continued from page 21)
pleasant acquaintanceship, but also be­
cause they recognize that women, to
an amazing degree, form the pattern
which the family finances take. They
realize, too, that women are sometimes
their best advertising medium. There
is much truth in the oft quoted say­
ings: “Tel-ephone, tel-egraph, tell a
woman” and “The hand that rocks the
cradle rules the world” (some wag
facetiously remarked: “Nowadays too
few want the job of rocking the cra­
dle; they would rather play bridge” ).
Except for other business men who
have similar problems, the majority
of people do not realize the tremen­
dous responsibility of the banker. He
has the funds of thousands of people
in his keeping and lack of good judg­
ment or rectitude on his part can pro­
duce disastrous results. No one is
more conscious of this fact than the
banker himself. And even though
some may fail now and then on the
social side, in personal or human rela­
tions, the majority of them are men
of integrity and high principles.
A little reflection, then, on these
ideas so generally entertained by wom­
en, that banking is a man’s business,
that money insures happiness, and
that bankers are cold and impersonal,
will lead to the conclusion that they
are not based on fact, and it is the
wise woman who becomes acquainted
with her banker and turns to him for
help whenever occasion demands.—
The End.

past (I hope) the banker was fre­
quently described as a man with a
glassy eye and a marble heart, but
even in those days that description
was a caricature. If, in her approach
for assistance, a woman has met a
person whose manner is abrupt and
whose interest seems casual, she is
likely to conclude that “a banker is
your best friend” statement may be
good advertising but doesn’t work out
in practice. Fortunately, however,
that type of banker is the rare excep­
tion. We cannot deny that bankers
have themselves to blame for much
of the abuse which has descended
upon their heads because too often it
was taken for granted that the ele­
ments of banking were understood by
the majority of people, and no special
effort was put forth to educate the cus­
tomer in the fundamental principles
which guide the banker in his man­
agement of business. They have come
to see that unless such education is
provided there always will be that
lack of understanding.
In these days, bankers, as well as
men and women in any other business,
are awake to the efficacy of friendly,
human relations and the public rela­
tions officer who can find and correct
the weak spots among the manage­
ment and the personnel of his com­
pany is contributing an important
service.
Progressive bankers appreciate their
women customers, not only for their

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W rite for booklet C -5 0 to any

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Grand Rapids, Mich.
if
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San Antonio, Texas


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Federal Reserve Bank of St. Louis

T o d a y .”

WILLIAM H.BAMS
WAREHOUSES
(INC.)
‘8 0 -i^Zcte^

NEW YO R K........................64 Wall St.
CHICAGO...............27 S. La Salle St.
SAN FRANCISCO - 333 California St.
HEAD OFFICE
MONTREAL

LONDON
47 Threadneedle St., E. C. 2
9 Waterloo Place, S. W. 1

2 0 9 SO. L A S A L L E ST.. C H IC A C O . ILL.

Jiehl ZUaAeIumA£ 'Receipt*.
B ftid y in t^ THE GAP B e tw e e n

B A N K IN G and IN D U S T R Y

RESO U RCES

Q .V ER

$2

B IL L IO N

Nort hwest ern Banker, January,

1950

46

M akes

a crucial point in the Treasury secu­
it-Year M arket Sarveif
rity markets.”

IN A comprehensive study entitled
I “ 1950-1952—The Next Three Years
in the Treasury Security Market,” Au­
brey G. Lanston & Company, Inc., New
York City, specialists in U. S. Govern­
ment securities, declared that a “cru­
cial point in the Treasury security
markets” will be reached in 1952. The
study is published in two parts, Part I
being the “Discussion,” and Part II
containing “Charts and Tables.”
Pointing out that during the years
1950-1952, $44 billion of marketable
bank-eligible Treasury bonds—three-

quarters of the total outstanding—
will be refunded, the booklet said that
“based on the Treasury’s ownership
survey (as of June 30th) commercial
bonds will lose through these refund­
ings about three-quarters of their pres­
ent eligible-bond portfolios” ; that un­
less the Treasury or the Federal Re­
serve System, or both, make additional
ineligible bonds available, “nonbank
holders who wish to acquire such
bonds will be unable to do so” ; and
that “with the year 1952, we will reach
the high point in these refundings and

M

General conclusions drawn by the
firm, on the basis of its appraisal of

bj
Securities

èP ìeben lèn gt

RESOURCES

Cash and Due from Banks............................................................................. $ 5 1 ,4 3 6 .6 7 2 .
Bonds (Carried at less than Market Value) :
U. S. Government and TJ. S. Government
Guaranteed Bonds ..................................... S 3 4 ,3 6 2 ,4 1 7 .0 8
Federal Land Bank, State and Municipal
Bonds .............................................................
1 2 ,6 6 1 ,1 9 7 .3 7
High Rated Corporation Bonds.....................
4 9 7 ,0 2 8 .0 7
4 7 ,5 2 0 ,6 4 2 .;
Federal Reserve Bank Stock .
150,000 .i
Loans and Discounts.
5 2 ,7 8 8 ,0 5 1 .
New City Bank Building.
1,647,121.1
Other Real Estate............. ..................
...........
Furniture and Fixtures (Cost over .$200,000)
Customers’ Liability Account of Letters of Credit.
2 0 9 ,1 8 6 .
Customers’ Liability on Acceptances Outstanding.
1 1 6 ,8 2 0 .
Accrued Interest Receivable.
3 2 0 ,8 3 4 .
Overdrafts ...................................
6 ,2 1 3 .
Total Resources .....................................................................................$ 1 5 4 ,1 9 5 , ¡44.

1.1
1.1

L IA B IL IT IE S

Capital Stock (Paid In) . . . .$ 4 0 0 ,0 0 0 .0 0
Capital Stock (Earned) . 1 ,6 0 0 ,0 0 0 ,0 0 0 ,0 0
$ 2 ,0 0 0 ,0 0 0 .0 0
Surplus (Earned) ...........7 7 7 ............................ . 3 ,0 0 0 ,0 0 0 .0 0
Undivided Profits (Earned)..................................... 3 ,1 7 0 ,5 9 1 .7 5
Invested Capital
,1 7 0 ,5 9 1 .
.............
Valuation Reserves
4 3 1 ,3 9 4 .
Reserve for Interest and Taxes.
2 8 2 ,8 6 6 .
Unearned Interest
4 0 4 ,5 5 7 .
Our Liability Account of Letters of Credit Issued
2 0 9 ,1 8 6 .
Our Liability on Acceptances.............................................................
¿.¿.v
1 1 6 ,8a 2* 0„ .
Deposits
............................................................................................................. 1 4 4 ,5 8 0 4 2 8
Total Liabilities .....................................................................................$ 1 5 4 ,1 9 5 ,5 4 4
The above statement is correct.
R. C. K EM PER, President.
DIRECTORS
R. V. AYCOCK
P r e s i d e n t , G r a n d A v e . B a n k o f K a n s a s C it y
P r e s id e n t, V a u g h n In v e s t m e n t C o m p a n y
PAU L D . B A R T LE TT
P r e s i d e n t , H a r t - B a r t l e t t - S t u r t e v a n t G r a in C o .
EDGAR L. BERKLEY
P r e s id e n t , W a x id e P a p e r C o m p a n y
E. K E M PE R C A R T E R
C h a ir m a n o f B o a r d , T h e C a r t e r - W a t e r s
C o rp o r a tio n
R. B . C A Y W O O D
P r e s id e n t, H . D . L e e C o m p a n y , In c.
A R TH U R B . CHURCH
P r e s . & G e n . M g r . M id la n d B r o a d c a s t in g C o.
W IL L IA M N . D E R A M U S
P r e s id e n t , T h e K a n s a s C it y S o u th e r n R a il­
w ay C om pany
H EN RY N . ESS
W a t s o n , E s s , W h i t t a k e r , M a r s h a ll & E n g g a s ,
A ttorn ey s
ALDEN L. H ART
P r e s id e n t , U n ite d U t i lit ie s , I n c o r p o r a t e d
J. F R A N K H U D S O N
P r e s id e n t , I n t e r s t a t e S e c u r it ie s C o ., I n c .

L E S T E R H U T C H IN G S
C h a ir m a n o f B o a r d , W e s t e r n A u t o S u p p l y
C om pany
M O R T O N T . JO N E S
P r e s i d e n t , K a n s a s C i t y F i r e a n d M a r in e
Insu ran ce C om pan y
RU FU S CRO SBY K EM PER
P r e s id e n t
GEORGE C. K O PP
E x e c u t iv e V ic e -P r e s id e n t
W . M . L IS T
P r e s id e n t, L is t C o n s tr u c tio n C o m p a n y
H ARRY M ORELAND
P r e s id e n t , G r e a t L a k e s P ip e L in e C o m p a n y
E. C. R H O D E N
P r e s id e n t , F o x M id w e s t T h e a tr e s , I n c .
H ERM AN R . SU TH ERLAN D
M a n a g in g 1 P a r tn e r , S u th e r la n d L u m b e r C o .
S u th e r la n d M a n u fa c t u r in g C o m p a n y
J . P . W H IT A K E R
P r e s id e n t , W h ita k e r C a b le C o r p o r a tio n
H E R B E R T H . W IL S O N
P r e s id e n t , E m e r y , B ir d , T h a y e r C o m p a n y
KEARNEY W ORNALL
V ic e -P r e s id e n t

CITY NATIONAL
1913

M E M B E R F EDERAL DEPOSIT
insurance

corporation

survey

/Condensed Statement of Condition

City National’ s

ESTABLISHED

A U B R E Y G. L A N S T O N
firm head releases 3-year

I 0 TH

AND

GRAND

•

KANSAS

C 1 1 T 10 .

m

the picture as it may develop during
the next three years; are:
“a. Between now and 1952, the is­
sues selected by the Treasury for re­
funding purposes may be limited to a
term of five years or less at yields that
will fail to replace the income received
from maturing bonds. This means
higher bond prices in general,
“b. Barring a demand for capital
and credit that would be consistent
only with a substantial and protracted
business boom, the amount of funds
seeking investment in government se­
curities of more than five-year term
will be greater than the amount of
such securities available. This also
means higher bond prices in general.
“c. If, for any unexpected reason,
Treasury security prices were to un­
dergo any material price decline, offi­
cial support would be rendered Treas­
ury bonds to whatever extent was
needed, although not necessarily with­
in the same pattern as the support of
1947-1948.
“d. The passage of time has so short­
ened the term of outstanding Treasury
bonds that the longer maturities may
reach a new low level in yield; (1)
the longest-term ineligible obligations
currently offer the best protection
against both a strong and a weak mar­
ket, and (2) the longest-term bank-eli­
gible issues offer the best protection
of income for a stable to a strong
market.”

O

New York Trust Promotions
t

' o n

Nort hwest ern Banker, January, 1950


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

Following a meeting of the board of
trustees of The New York Trust Com­
pany, Charles J. Stewart, president,
announced the following promotions:

47

In the banking division Edward S.
Peterson, treasurer, was promoted to
vice president and treasurer; Edward
L. Palmer, assistant treasurer, was
promoted to assistant vice president,
and Harry H. Bock, manager of the
credit and investment research de­
partment, was appointed assistant
treasurer. In the investment division
Charles B. Eddy, Jr., assistant secre­
tary, was promoted to assistant vice
president.

On th e C o ver

Dividend
The board of directors of the City
National Bank and Trust Company of
Chicago at a recent monthly meeting
declared a regular quarterly dividend
of $1.50 per share of stock, payable
on February 1, 1950, to stockholders
of record on January 20, 1950.

THE OUTLOOK FOR
BUSINESS IS GOOD
(Continued from page 19)
in the theory of a persistent bias to­
ward inflation, I do not think that the

day of depression is over. I believe
that after the deferred demand for dur­
able goods disappears, and the cold war
subsides, we may face a serious depres­
sion that even our new found knowl­
edge and our new attitudes will not
be sufficient to cope with. But I do
not expect to see a 1933 again in my
lifetime.
“The boom is likely to continue for
at least another six months or a year.
However, the private sector of the
economy is getting progressively weak­
er. The actual course of business will
depend on the developments in the
cold war.”—The End.

The young lady on the January cov­
er of the N orthwestern B anker is
“Miss America of 1950,” and she does
not have her “ tongue in her cheek”
as she enters the new year. No in­
deed—but she is “sticking out her
tongue” at the rest of the world and
suppressing a slight smile as she
gazes into the great new universe
which she has not yet explored.
What the year 1950, which marks
the middle of the twentieth century,
will unfold before her sparkling eyes
is as much a mystery to her, as to all
of us.
“ They are idols of hearts and of house­
holds;
They are angels of God in disguise:
His sunlight still sleeps in their
tresses,
His Glory still gleams in their eyes:
Those truants from home and from
Heaven
They have made me more manly
and mild;
And I know now how Jesus could
liken
The kingdom of God to a child.”
In 1949 there were 3,590,000 young
Americans born in the United States
and in 20 years to 25 years the re­
sponsibilities of our nation will rest
upon their shoulders, and we wish for
them all the best of good luck.
But to “Miss America of 1950” we
give our special love and devotion, be­
cause she is our Current Queen, and
we bow humbly at her throne as we
tear off the months of the calendar,
one by one, on our last year in the
first half of the most momentous cen­
tury of all recorded time.

THE DROVERS“ YELLOWBOY
ADVICE IS W ELL KNOWN
TO BANKERS WHOSE CUS
TOMERS SHIP LIVESTOCK TO
CHICAGO. IT IS THE SYMBOL
OF FAST, FRIENDLY SERVICE
IN COLLECTING LIVESTOCK

DROVERS RATIONAL BANN
DROVERS TRUST & SAVINGS BANN

And who is our Queen—our Miss
America on the cover? She is Frances
T)e Puy Peterson, daughter of Mr. and
Mrs. Talbot Peterson of Appleton.
Wisconsin, and the granddaughter of
Mr. and Mrs. Ray E. Peterson, of Ap­
pleton, and Mr. and Mrs. Clifford De
Pny, of Des Moines.

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

Northwestern Banker, January,

1950

i f tr a n s it

W h a t hapï>eiaS


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

Come loss . . . dispute . . . carelessness or

items are

mistake, it’ s reassuring to know that you
have Recordak microfilm copies of all items

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tion that’ s a by-word in thousands of banks
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be reproduced as large-size facsimile prints,
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Federal Reserve Bank of St. Louis

operating costs in transit and bookkeeping.
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" Recordak ” is a trade-mark

50

New Issues iQ Q
4

P u rc h a s e d a n d O ffe re d by H a lse y , S tu a r t & C o. I n c . a lo n e o r w ith a sso c iate s*
Amount

Issue

of

Amount of
Underwriting
Issue
Corporate
Interest
$ 8.300,000 ARKANSAS POWER 8c LIGHT COMPANY
334% Sinking Fund Debentures, Due 1974 . . . . $ 4,450,000
9.000. 000 ASSOCIATED TELEPHONE COMPANY, LTD.
First Mtge. Bonds, Series F, Due 1979, 27/s% . . .
5.450.000
10,665,000 ATLANTIC COAST LINE RAILROAD EQUIPMENT TRUST SERIES J, 214% Equip. Trust Ctfs.,
Due 1950-64 .....................................................
3.315.000
7.000. 000 THE CALIFORNIA OREGON POWER COMPANY
First Mtge. Bonds, Series due 1979, 2/g%.................
4.750.000
10.000. 000 CENTRAL ILLINOIS PUBLIC SERVICE COM­
PANY, First Mtge. Bonds, Series C, 314%, Due 1979 .
4,000,000
9.140.000 CHESAPEAKE AND OHIO RAILWAY EQUIP­
MENT TRUSTS OF 1949 (2 issues) 214% Equip.
Trust Ctfs., Due 1950-64 .......................................
3.790.000
6.600.000 CHICAGO AND NORTH WESTERN RAILWAY
COMPANY SECOND EQUIPMENT TRUST of
1949, 2%% Equip. Trust Ctfs.,’ Due 1950-64 . . . .
3.600.000
13.000. 000 THE COLUMBIA GAS SYSTEM, INC.
3% Debentures, Due August 1974 ..........................
5.850.000
6.930.000 DELAWARE, LACKAWANNA AND WESTERN
RAILROAD COMPANY EQUIPMENT TRUSTS,
Series H & I, 214% Equip. Trust Ctfs., Due 1949-64 . .
4.230.000
40.000. 000 DUKE POWER COMPANY
First & Refg. Mtge. Bonds, 2/g%, Series Due 1979 . .
9.500.000
12.000. 000 EASTERN GAS AND FUEL ASSOCIATES
First Mtge. & Col. Trust Bonds, 3%% Series Due 1974
2.100.000
11.920.000 ILLINOIS CENTRAL EQUIPMENT TRUSTS
SERIES BB 8c DD 214% Equip. Trust Ctfs., Due 1949-59
5.520.000
8,000,000 INDIANAPOLIS POWER 8c LIGHT COMPANY
First Mtge. Bonds, 3% Series, Due 1974 ..................
3.250.000
7.500.000 IOWA POWER AND LIGHT COMPANY
First Mtge. Bonds, 234%, Series due 1979 ..................
5.450.000
41.000. 000 LOUISVILLE GAS AND ELECTRIC COMPANY
First Mtge. Bonds, Series due 1979, 234% ; . . . .
14.050.000
7.500.000 MISSISSIPPI POWER 8C LIGHT COMPANY
First Mtge. Bonds, 314%, Series due 1979 .................
5.800.000
35.000. 000 NEW ENGLAND TELEPHONE AND TELE­
GRAPH COMPANY, 25 Year 3% Debs., Due 1974 .
14.650.000
32.145.000 NEW YORK CENTRAL RAILROAD EQUIPMENT
TRUSTS of 1949 (3 issues) 254 & 234% Equip. Trust
Ctfs., Due 1950-64 ................................... ....
11.145.000
10.425.000 NORTHERN PACIFIC RAILWAY EQUIPMENT
TRUSTS of 1949 (2 issues) 214 & 234% Equip. Trust
Ctfs., Due 1950-64 ...................... ..........................
5.325.000
10.000. 000 NORTHERN STATES POWER COMPANY (WIS.)
First Mtge. Bonds, 3% Series due 1979 ......................
3.550.000
10.000. 000 OKLAHOMA GAS AND ELECTRIC COMPANY
First Mtge. Bonds, Series due 1979, 3 % ..................
2.500.000
80.000. 000 PACIFIC GAS AND ELECTRIC COMPANY
First & Refg. Mtge. Bonds, Series S, 3% due 1983 . .
21.250.000
11.000. 000 PENNSYLVANIA ELECTRIC COMPANY
First Mtge. Bonds, 234% Series Due 1979 . . . .
2.750.000
9.990.000 PENNSYLVANIA RAILROAD EQUIPMENT
TRUST, SERIES W 214% Equip. Trust Ctfs., Due
1949-63 ........................................................ ....
3.990.000
10.000. 000 POTOMAC ELECTRIC POWER COMPANY
First Mtge. Bonds, 2/&% Series due 1984 ..................
5.350.000
7.500.000 ROCKLAND LIGHT AND POWER COMPANY
First Mtge. 314% Bonds, Series C due 1978 . . . .
5,000,000
7.500.000 SOUTHERN RAILWAY EQUIPMENT TRUST,
SERIES RR, 214% Equip. Trust Ctfs., Due 1949-64 . .
2.550.000
28,260,000 SOUTHERN PACIFIC COMPANY EQUIPMENT
TRUSTS, SERIES BB 8c CC, (2 issues) 214% & 2y8%
Equip. Trust Ctfs., Due 1950-64 ...............................
6.960.000
12.000. 000 WESTCHESTER LIGHTING COMPANY
Genl. Mtge. Bonds, 3% Series due 1979 ..................
5.650.000
10.000. 000 WEST PENN POWER COMPANY
First Mtge. Bonds, Series N, 234%, Due 1979 . . .
7.900.000
6.870.000 WHEELING AND LAKE ERIE RAILWAY COM­
PANY, Genl. & Refg. Mtge. 234% Bonds, Due 1974 4.870.000

Municipal

$13,760,000 ALLEGHENY COUNTY, PA.
2 Sc2l/s%Bonds, Due 1950-79 (2 issues)
25.000. 000 BOSTON, MASS., CITY OF
,,
Various rates Notes, Due 1949 (5 issues)
11,250,000 Var. rates Bonds, Due 1950-79 & 1994 (2 issues)
130.000. 000 CALIFORNIA, STATE OF
21/4% Veterans Bonds, Due 1951-70
1.750.000 CHATTANOOGA, TENN., CITY OF
21/4, 21/2 & 4% Bonds, Due 1950-74
6.480.000 CONNECTICUT, STATE OF
iy8% Bonds, Due 1950-79
6.420.000 DADE COUNTY, FLA.
Various rates Bonds, Due 1950-69
10.000. 000 DENVER, COLO., CITY &COUNTY OF
Various rates Bonds, Due 1954-78
t 5,000,000 DETROIT, MICH., CITY OF
Various rates Bonds, Due 1950-78
f

8,000,000

east b a t o n rouge parish

CON. SCH. DIST. No. 1, LA.
21/2% Bonds, Due 1950-68
2.000. 000 HEMPSTEAD, N. Y„ TOWN OF
2.60% Bonds, Due 1950-89
f 9,196,000 HOUSTON IND. SCH. DIST., TEX.
214, 2% & 3% Bonds, Due 1955-78
8.750.000 IOWA, STATE OF
}/4%Service Comp. Bonds, Due 1949-53
1.500.000 LANE CO., ORE. SCH. DIST. No. 4 (Eueene)
214 & 2% Bonds, Due 1949-68
450.000. 000 LOUISIANA, STATE OF
a i c i nnn Var- rates’ Veterans' Bonds, Due 1953-64
3.251.000 5 Sc 2.30% Bonds, Due 1952-68
1.500.000 MIDDLETOWN, O., CITY OF
2 & 214% Water Rev. Bonds, Due 1950-79
3.415.000 MILFORD, CONN., TOWN OF
1.70% Bonds, Due 1950-69
5.000. 000 MISSISSIPPI, STATE OF
Highway Bonds, Var. rates, Due 1958-71
5.000. 000 NASHVILLE, TENN., CITY OF
4 & U/2% Elec. Rev. Bonds, Due 1952-59
1.645.000 NEW h a v e n , c o n n ., c it y of
1.40% Bonds, Due 1951-69
4.000. 000 NEW ORLEANS, LA., CITY OF
2/2 & 214% Bonds, Due 1951-89
2.060.000 NIAGARA FALLS, N. Y., SCHOOL DISTRICT
1.60% Bonds, Due 1950-69
27.000.
000 NORTH DAKOTA, STATE OF
1.40% Veterans’ Bonds, Due 1950-58
3.000. 000 OKLAHOMA CITY, OKLA.
BOARD OF EDUCATION
4, 114 & 2% Bonds, Due 1952-74
3.000. 000 OREGON, STATE OF
114% Veterans’ Welfare Bonds, Due 1962
30.000. 000 PENNSYLVANIA, GENERAL STATE AUTHORITY
Var. rates Bonds, Due 1952-74
15.000. 000 PENNSYLVANIA, STATE HIGHWAY Sc
BRIDGE AUTHORITY
1 & 11/4% Bonds, Due 1953-61
5.000. 000 PHILADELPHIA, PA., SCHOOL DISTRICT
2% Bonds, Due 1951-74
6.600.000 PITTSBURGH, PA., CITY OF
1.80% Bonds, Due 1950-69
30.000. 000 P<?RT OF NEW YORK AUTHORITY
Air Terminal Bonds, 2
Due 1979
2.450.000 PROVIDENCE, R. I., CITY OF
2% Bonds,- Due 1952-73
2.678.000 ROANOKE, VA„ CITY OF
114 & 2% Bonds, Due 1950-79
415,000,000 the SANITARY DISTRICT OF CHICAGO
,
„ 2'/2% Const. Bonds, Series 13, Due 1969
6.525.000

134% Tax Anticipation Warrants

9,000,000

SEATTLE, WASH., CITY OF
2!4% Mpl. Lt. & Pr. Bonds, Due 1954-74
5,000,000 SOUTH CAROLINA, STATE OF
1.90% Hwy. Ctfs. of Indebt., Due 1951-59

42,935,000 ADDITIONAL MUNICIPAL BONDS, VARIOUS ISSUES
D e s c r i p t i v e c ir c u l a r s o r p r o s p e c t u s e s a n d c u r r e n t q u o t a t i o n s w i l l
b e s u p p lie d fo r a n y o f t h e s e s e c u r itie s u p o n r e q u e s t .

* To Dec. 12, 1949
t Issues beaded jointly by Halsey, Stuart & Co. Inc. and others
All other issues were headed, or purchased and offered
alone, by Halsey, Stuart & Co. Inc.

53.595.000 ADDITIONAL RAILROAD BONDS AND EQUIP­

Send For
Year-End Bond Survey
A concise yet comprehensive survey of activities and
influences operating in the bond market as a whole—
and in each major classification. Request your copy to­
day, without obligation. Write for leaflet NB-9.

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Federal Reserve Bank of St. Louis

44.400.000

MENT TRUST CERTIFICATES, VARIOUS ISSUES
a d d i t i o n a l p u b l ic u t i l i t y b o n d s , v a ­
r i o u s ISSUES

HALSEY,
123

S.

LA S A L L E

STU ART

STREET,
AND

C H I C A G O
O TH ER

90

•

35

PR IN C IP A L

&, C O .
WAL L STREET,
C I T IE S

32.185.000
42.150.000

I NC.
N EW

YORK

5

51

INVESTMENTS

Tin» in vestm en t Onttool*
for lit •111
There Is a Delicate Balance Between Inflation and Deflation,
But Aspects Point to Continued High Levels of Activity.
By RAYMOND TRIGGER
Investment Analyst
New York City

T HE

government bond market,
which sets the tone for all quality
investments and, to a large extent,
at least through the “bank quality”
grades of corporates, the price level,
is not a particularly glamorous affair
any more. After World War I, prices
of governments ranged, upon occasion,
pretty widely; some dipped to around
15 points under par. World War II,
though, brought about a much more
rigid control. For what it is worth,
the more recent war was financed at
a lower rate, but that consideration
means little because the aggregate
borrowing was so much larger.
The present market is so tightly
controlled that qualified observers and
advisors have no hesitancy in forecast­
ing, within an eighth or quarter point,
the price level of governments before
trading actually starts. For that mat­
ter, they have undertaken to say at
what price a particular issue will sell
a year hence. Their services would
not be retained, and paid for if their
record was notoriously poor. Indeed,
the reverse is the case. They are re­
markably good. But, it isn’t all due
to their inherent abilities. They are
helped significantly by the reiterated
aims of the “Washington authorities.”
Those aims are almost always achieved
under present day conditions.

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.

against itself. Not all the governors
endorse everything Allan Sproul and
Marriner Eccles say, although Mr. Eccles was for more than a decade chair­
man of the Federal Reserve Board
and Mr. Sproul is president of the
Federal Reserve Bank of New York.
December was enlivened, briefly, by
a skirmish between the Reserve and
the Treasury. The Reserve tightened
short term rates a little one day, but
the Treasury jumped the gun with its
“premature” or, as some contend,
“well-timed” announcement of its re­
funding plans. They included oneyear certificates on a lVs per cent ba­
sis, or to yield only a trifle more than
the rate to which 91-day bills had been
pushed by the Reserve. The latter, of
course, retreated since it feels morally
Two Purposes
Consequently, it is always profitable bound to do nothing likely to jeop­
to look into what appears to be the ardize any Treasury financing or re­
purposes of the authorities. The first funding operation.
The Treasury, for good or evil, has
glance reveals that there are two and
the whip hand. It is apparent that its
that they are sometimes in conflict.
The Treasury, responsible for a huge top men feel that business is likely to
continue moving along at about the
and unwieldy debt, is determined to
proper pace for some months, at least,
finance it at low interest rates. The
to come. Consequently, the Treasury
Federal Reserve, emasculated of some
has no objection to plenty of cheap
of its powers during the war, would
like to have more of a say. The money being available for borrowers
Treasury, thus far at any rate, has who may wish to buy a home, or an
had all the better of it. For one automobile, or d u r a b l e household
thing, the Treasury, whatever its poli­ equipment and the like.
Still, the Treasury made some con­
cies may be, is run by one man; the
cession
to those who contend that the
Reserve is often a house divided


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Federal Reserve Bank of St. Louis

debt is badly out of balance and should
not be constantly refunded into short­
term, low-interest obligations, when it
offered a 4M-year note carrying 1%
per cent. Of itself, that is not much,
but some bankers see a change of heart
taking place under the constant bar­
rage of some Reserve officials and a
good number of the country’s top com­
mercial bankers. From this premise
the argument runs along to suggest
that the Treasury might move over a
little toward the position of the Re­
serve if business gets a little better in
early 1950 months and, more particu­
larly, if credits extended to consumers
continue to rise at a fairly rapid pace.

Outlook for 1950
What, then, is the outlook for busi­
ness in 1950? It is important because
it will be a major factor in determin­
ing Treasury policies and it is Treas­
ury policies which set the prices for
government bonds.
The national economy was recently
reviewed by one of the most respected
members of the Federal Reserve
Board, M. S. Szymczak. He was talk­
ing to credit men gathered together in
the midwest. His summary: “The
present balance is a delicate one, which
could easily be upset by expansion of
government expenditures and deficit
financing on the one hand, or by any
pronounced curtailment of consumer
or business demand on the other.’
The problem, of course, is to try to
foresee which way this delicately bal­
anced economy will swing. Mr. Szym­
czak offered a list of factors favoring
inflation and another making for de­
flation. They are well worth the at­
tention of the commercial banker. As­
pects pointing to continued high levels
of activity:
A record level of construction activ­
ity, which government experts think
will remain high in 1950.
Consumer spending for goods and
services, running only 2 per cent beNort hwest ern Banker. January.

1950

52

Investments

low the record high set in the first
quarter of 1948.
Continued large-scale demand for
autos, houses and durable goods.
National Service Life Insurance re­
funds of $2.8 billion to be paid in 1950.
Continued high federal spending
which will bolster consumer income.

Deflationary Side
On the deflationary side, Mr. Szymczak offered:
Many postwar demands for goods
and services have been satisfied.
Business spending for new plant
and equipment is declining.
Wholesale prices continue to drop.
While industrial production h a s
picked up since July, 1949, it is still

about 12 per cent under year earlier
levels.
Bumper crops foreshadow continued
pressure on farm prices and incomes.
More liberal pension programs and
postwar wage increases have saddled
many business concerns with relative­
ly large and inflexible cost structures
which may seriously impede price re­
ductions that might be needed if de­
mand should start to fall off.
There is another constructive fac­
tor, also mentioned by Mr. Szymczak,
that is of great, though intangible im­
portance. It is the remarkable ab­
sence of speculative excess. The over­
all financial position of business is
sound, happily.

Member Federal
Home Loan
Bank System

Dece m her

H O M E

3 1.

1949

F E D E R A L

S AV I N G S A N D L O A N A S S O C I A T I O N
of Des Moines

ASSETS

DIRECTORS
C. B. Fletcher
C h a ir m a n

o f th e B o a r d

Arthur S. Kirk

Cash, Investm ents and Securities
Cash on H and and in B a n k s ..? 618,158.60
U. S. B o n d s........................................ 1,292,847.21
Federal H om e Loan Bank
Notes
..............................................
55,000.00 $ 1,966,005.81

P r e sid e n t

Dr. Lawrence E . K elley
V ic e

P r e sid e n t

Jonathan

M.

Fletcher

E x e c u tiv e V ic e P r e sid e n t

John R. Buckley, Jr.
V ic e

H om e Federal Building and Equipm ent.
Other A ssets ........................................................

C ou n sel

Joseph N . Chamberlain
R ea l E sta te

P r e sid e n t E m e r itu s ,
S im p s o n C o lle g e

R osw ell

Garst

T h om a s H y b r id
C orn
C o.

Dr. M arvin J. Houghton
D e n tist

J.
Io w a

T.

249,372.34
15,080.72
$15,156,869.24

& In su ra n ce

L I A B I L I T I E S

Dr. John L. H illm an

&

12,726,410.37

P r e sid e n t

H arold J. H ow e

G a rst

200,000.00

Federal Hom e Loan Bank S to c k ..........................
Loans
Conventional Loans
....................$4,905,187.29
G. I. L o a n s.......................................... 5,072,962.20
F. H. A . L o a n s ................................. 2,490,367.54
F. H. A . Im provem ent L o a n s ..
156,786.78
Loans on Savings A c c o u n t s ...
101,106.56

Schilling

P ow er

& L ig h t C o.

Savings Accounts ............................................................ $12,983,575.05
Earnings Payable January 1, 1950.
149,760.51
Advances from Federal H om e Loan B ank. . . .
750,000.00
Loans in Process ..........................................................
508,816.95
Other L iab ilities ............................................................
37,651.47
Specific Reserves ..........................................................
1,538.32
Reserves
Reserve for C ontingen cies.......... $250,000.00
Federal Insurance R eserve......... 425,526.94
U nallocated Reserve .......................
50,000.00
725,526.94
$15,156,869.24

G R O W T H OF T H E HO M E F ED ERAL
Organized under State Charter— M a y 6, 1936
Issued Certificate for Federal Insurance of Accounts— September 21, 1936
Converted to Federal Charter.— April 2S. 1939
Decem ber
D ecem ber
Decem ber
Decem ber
Decem ber
D ecem ber
D ecem ber

3L
31,
31,
31,
31,
31,
31,

ASSETS
1936..........................$
22,781.88
Decem ber 31,
219.879.90 Decem ber
31,
1937........................
1938...........
473,286.99
Decem ber
31,
1939........................
908,953.20 Decem ber
31,
1940........................ 1,519,623.15 D ecem ber
31,
1941......................... $2,007,458.08 D ecem ber
31,
1942......................... 2,382,920.45 D ecem ber
31,

Northwestern Banker, January,


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

1950

1943
1944
1945
1946
1947
1948
1949

........... 3.385,610.88
........... 5,610,071.53
........... 6,722,411.21
........... 8,919,749.94
.............10.863,435.23
.............12,249,660.02
.............15,156,869.24

Reverting to government bonds and,
of course, investment securities re­
sponsive to the price of governments,
the upshot of the foregoing would
seem to be that the course of business
in the first half of 1950 will be such
as not to call for any drastic revision
of recent Treasury policies, but that
more concern will be shown on pre­
venting excessive rises by government
than on preventing modest declines.
Supporting this view is the fact that
the whole bond market gives more the
appearance of topping off than of pre­
paring to ascend to new, sustained
high levels.
The tax-exempt sector is viewed in
differing lights. One observer will
point out that dealer inventories are
too high and that the early 1950 mar­
ket will be affected adversely by Fed­
eral Reserve selling of Treasurys. An­
other will contend that the need for
tax shelter is not likely to be lessened
by any significant lightening of income
taxes in view of the prospective Fed­
eral deficit and that reinvestment de­
mand in the early weeks of the year
will solve any problems that may actu­
ally exist with respect to dealer inven­
tories.
The optimists would appear to have
the stronger position. Only recently,
in connection with a major borrowing
by New York City Housing Authority
(guaranteed by New York City), the
following comment was published:
“Early maturities probably will be
taken by banks and others who have
been buying one to 12 year bonds.
The rating would justify even small
banks in making such purchases and
yet the yield probably will be such as
seldom goes with an A rating. The
long end should attract fire and cas­
ualty companies and the stock life
insurance companies.” As a matter of
record, this forecast was realized when
the bonds were publicly offered.

Housing Issues
Presently, or at least some time in
the first half of 1950, the new Housings,
issued by local authorities under the
terms of the Housing Act, 1949, will be
coming to market. Income from these
bonds will be exempt from Federal
taxation and certain other taxes and
they—as indirectly guaranteed, or at
least supported by the Federal govern­
ment—will be classified as “riskless”
by the omniscient examiners from the
office of the Controller of the Currency.
The ultimate volume of these obliga­
tions will be huge and it may be that
their prices will reflect the expectation
of this, despite all their virtues.
Smaller, but still not an inconsider­
able issue, will be on the market from
the World Bank in the first 1950 quar­
ter. These are to be refunders, matur­
ing in three to 12 years and, presum-

53

Investments
ably, tailor-made for bank consump­
tion. There are of coursq, several
opinions of the activities of the bank
and the quality of its bonds, but the
problem really boils down to the size
of its debt. It has only $250,000,000
outstanding in U. S. currency and the
impending operation is a refunding,
not new borrowing. Against this rela­
tively modest debt, there is an obliga­
tion of the U. S. to produce up to $2.5
billion to care for the bank’s obliga­
tions. Thus, unless and until the bank
expands vastly more, its bonds should
hold investor-respect.

"Tax Selling"
A feature of every December is the
flood of counsel on taxation and, fre­
quently, security markets do reflect
“tax selling,” or, as often, “tax switch­
ing.” There are a variety of angles in
the picture created by the perfectly
legitimate ways in which taxes can be
held to the minimum.
Ordinarily, for example, “tax sell­
ing” implies sales made late in Decem­
ber, or even for “cash” on the last day
of the year. In passing, the New York
Stock Exchange closed the Saturday

before Christmas, but remained open
the Saturday before New Year’s in or­
der to provide a market place for laggardly loss takers.
But “tax selling” need not be re­
stricted to establishing losses in a
given calendar year. Establishing
profits is sometimes profitable, too. A
great many investors, including the
professional managers of commercial
bank investment portfolios, shy away
from taking profits because a 25 per
cent long-term capital gains tax is in­
volved. In addition, it will be pointed
out, the investment sold cannot be re­
placed with one of comparable quality
to yield as much as the original hold­
ing.
This is true, as far as it goes, be­
cause the opportunity to take a profit
implies that the price has risen and,
correspondingly, the yield has fallen
and that yields from comparable in­
vestments likewise will be lower. This,
however, is not the complete story.
When a capital gain is taken, the
profit can be considered an “antici­
pated” income. This income will,
roughly, offset the lower actual income

realized from the reinvestment of the
funds. Income for income, then, there
is no loss or profit. The benefit arises
from the fact that the “anticipated”
income is taxable at only 25 per cent,
whereas actual income, had it not been
“anticipated,” would be subject to a
tax of 38 per cent in most cases and of
53 per cent on incomes between $25,000
and $50,000 a year. The argument just
presented relates only to fully taxable
incomes. It would not apply to par­
tially exempt governments or fully ex­
empt municipals.
The benefit from realizing capital
losses is that they may be applied
against profits generally. That is well
understood and a well-established cus-

SHORT TERM PAPER
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usual option, the six-months notes
o f the following makers in denom i­
nations o f $ 5 ,0 0 0 and multiples
thereof.

Acceptance Corp. of Florida
O r la n d o

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Bankers Investment Company
H u tc h in so n

Commercial Securities Co., Inc.

IOW A AND GENERAL MARKET MUNICIPALS
PUBLIC UTILITY, INDUSTRIAL, AND RAILROAD SECURITIES
IOW A CORPORATE SECURITIES

B a to n R o u g e

Doty Discount Corporation
D e tr o it

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S t.

UNDERWRITERS

DISTRIBUTORS

L o u is

Interstate Finance Corporation
E v a n s v ille

Members Midwest Stock Exchange
200 Equitable Bldg.
DES MOINES 9, IOWA

135 South LaSalle St.
CHICAGO, ILLINOIS

Liberty Loan Corporation
C h ic a g o

Manufacturers' & Jobbers Finance
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S h elb y, N . C .

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S t. L o u is

Major Trend Predicted by

Northwestern Acceptance Co.
M ilw a u k ee

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fortnightly

O’Dea Finance Company
D e s M o in e s

Pekin Finance Company

Last June 4— just before common stocks established
a bottom for the 1946-49 bear market— Dayton &
Gernon went on record to say ‘'a major reversal of
trend is about to take place.” A 25 point advance
in the Dow Jones industrial average since June 13.
accompanied by recent demonstrations of exceptional
market strength, indicates that a new bull market
has already commenced.

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Itiver Valley Finance Co.
D avenport

Southwestern Investment Co.
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COMMERCIAL PAPER
COLLATERAL LOANS

DAYTON
M e m b e rs M id w e s t

& G ERN O N

S to c k E x c h a n g e a n d C h ic a g o B o a r d o f T r a d e

105 SOUTH LA SALLE STREET, CHICAGO 3. ILLINOIS
Phone: Central ¿>0780
MADISON, WIS. • LA CROSSE, WIS. * EAU CLAIRE, WIS.
FOND DU LAC, WIS. • MINNEAPOLIS, MINN. # WAUSAU, WIS.


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

R .C . L O N G & C O .
ESTA B LISH ED

1924

120 South LaSalle Street
Chicago 3, Illinois
Phone:

Randolph 6 -4 3 7 0

Northwestern

Banker,

January,

19 50

54

Investm ents

SECURITIES ACCEPTANCE C0RP0IIATI0N
AND SUBSIDIARIES
O M A H A

C o n s o lid a te d

B a la n c e

S h e e t —

S e p t e m

b e r

3 0

,

1 9 4 9

A S S E T S
C A S H IN B A N K S A N D ON H A N D .................................................

.$ 4,016,209.24

N OT ES R E C E IV A B L E :
Autom otive and other lien instalm ent notes (approxi­
m ately 16 per cent of instalm ents mature later than
one year) .............................................................................................$19,491,128.21
Dealers’ floor-plan lien notes..........................................................
3,688,015.16
Personal instalm ent loans on automobiles, household
goods, etc. (approxim ately 8 per cent of instalments
mature later than one y e a r )................................................... ..
2,279,184.84
Other notes receivable, $153,675.04 secured by miscel­
laneous collateral (approxim ately 59 per cent mature
later than one y e a r ) ........................................................................
353,675.04

Greatest Benefit
25,812,003.25

R E P O S SE S SE D A U T O M O B IL E S , ETC.
carried at unpaid balances of respective notes plus
repossession and reconditioning costs.....................................

8,450.00

C A S H S U R R E N D E R V A L U E OF L IF E I N S U R A N C E ____

35,907.25

P R E P A ID IN T E R E S T A N D I N S U R A N C E .................................

85,807.44

E Q U IT Y IN H O M E O FF IC E B U IL D IN G :
Building and land (at cost, less reserve for amortization
of $43,835.07) ....................................................................................$
L e s s : M ortgage not assumed (payable in m onthly
instalm ents of $776.44 including interest at 3 % )

76.165.93
76.164.93

1.00

A U T O M O B IL E S U SED IN B U S IN E S S ........................................
F U R N IT U R E A N D

1.00

F I X T U R E S ........................................................

1.00
$29,958,380.18

L IA B IL IT IE S
NOTES P A Y A B L E , U N SE C U R E D :
Bank loans and commercial paper (short t e r m ) ................ $16,755,000.00
Promissory notes, 3 % , due serially at $500,000 per an­
num on July 1, 1950 to July 1, 1954, inclusive................
2,500,000.00
D IV ID E N D S P A Y A B L E

$19,255,000.00

(Paid October 1, 1 9 4 9 ).......................

ACC O U N T S P A Y A B L E AN D ACCRU ED IT E M S :
Accounts payable ................................................................................. $
Accrued interest, miscellaneous, taxes, etc............................
Federal income ta x es..........................................................................

112,385.75
184,931.67
70,797.90
619,692.22

875,421.79

D E A L E R S ’ P A R T IC IP A T IN G LO SS R E S E R V E S ...................

1,154,412.90

R E S E R V E FO R C R E D IT L O S S E S .....................................................

425,000.00

D E F E R R E D IN C O M E —
Unearned discount, interest, insurance and carrying charges................

2,184,676.93

S U B O R D IN A T E S IN K IN G F U N D N O T E ,
due January 1, 1963 (sinking fund paym ents of
$100,000 due within one y e a r ) ................................................. $ 1,950,000.00
C A P IT A L STOC K A N D S U R P L U S :
Preferred stock—
5 % cumulative, par value $25.00, liquidating value
$26.25—
Authorized, issued and outstanding 60,000 s h a r e s ..$ 1.500.000. 00
Preferred stock authorized and unissued—20,000 shares, $25.00 par value, on which prefer­
ences, etc., have not been designated..............................
Common stock, par value $2.00—
Authorized 1,000,000 shares
Issued and outstanding 750,000 shares.................................
1.500.000. 00
(includes 939 shares reserved for conversion of $4.00
par value stock not yet exchanged for $2.00 stock)
Earned surplus (per accompanying su m m a ry ).....................
1,001,482.81

5,951,482.81
$29,958,380.18

CLARENCE

C h a ir m a n o f th e B o a r d

Northwestern Banker, January,


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

L. L A N D E N

P r e sid e n t and

1950

The greatest benefit of matching
losses against profits is derived when
the losses are of the short-term variety
and the gains come from investments
held more than six months. Thus, if
a long-term profit of, say, $10,000 is
taken in January and, with proceeds
reinvested in comparable securities
which, due to general conditions, drop
in market value, a $5,000 loss taken
within six months of purchase will be
sufficient to wipe out the tax liability
on the profit since only half of long­
term profits are subject to tax.
Thus, if 1950 sees steady to strong
bond prices in early months and softer
prices later on, the stage is set for
just such an operation. It couldn’t
be done in the final weeks of the year
because the profits would have evap­
orated, or shrunk, while losses would
have increased. On the other hand,
if bond prices remain steady to strong
all year, there will be no offset loss
taking, but the long-term profits ac­
cepted early in 1950 will be the “antici­
pated” income, with its advantages,
earlier discussed.
It is readily acknowledged that each
investor has his own particular prob­
lems and that none of the foregoing
will be applicable to some, although it
may be profitable to others. The main
point, though, is simply that the tax
angle deserves consideration all year
round, not just in the second half of
December.—The End.

Dividend

Total capital stock and surplus............................................ $ 4,001,482 81
T O T A L S U B O R D IN A T E D N O T E , C A P IT A L STOCK
A N D S U R P L U S ......................................................................

F R A N C IS P. M A T T H E W S

tom. The fact that it is well-estab­
lished dilutes its value though, because
everybody else is doing the same thing
at the same time. That means, of
course, that year-end tax selling often
is done at lower prices, and at greater
losses than need be. The principles
are sound enough, but the timing may
be poor.
Actually, there is no reason why
sales a n d purchases of securities
shouldn’t be done with an eye to tax
advantages at any time during a cal­
endar year. Everything that can be
adduced in support of taking losses or
profits in December for tax purposes
is just as valid in January. As a mat­
ter of fact, there is a wrinkle frequent­
ly overlooked that suggests taking ac­
tion early, rather than late in the year.

T rea su rer

Directors of The Northern Trust
Company, Chicago, have approved the
transfer of $2,000,000 of accumulated
undivided profits to surplus, increas­
ing the total surplus to $14,000,000.
The regular quarterly dividend of 4V2
per cent ($4.50) was declared payable
January 3, 1950, to stockholders of
record December 20th.

55

IN S U R A N C E

Those E xtra Services
You Oive Your Custom ers
By HAROLD S. BOWEN
Local Agent
Norwalk, Ohio
WANT to tell you about Joe Brown.
Joe is a purchasing agent for The
Acme Manufacturing Company of
Middletown and wants a new televi­
sion set for his home. They are high
priced and, of course, he would like
to get one for as small an outlay of
money as possible, everything consid­
ered. As purchasing agent, Joe gets a
few hundred thousand dollars of semi­
finished materials each year from a
mill supply agency in Chicago, and he
believes they would send him a televi­
sion set, less the local dealer’s margin
and perhaps less the distributor’s small
handling charge. Of course, he is
tempted.
Joe knows he will have to pay the
shipping charges, run the risk of dam­
age and delay, hire a local radio repair
shop to condition, adjust and install
the set, and perhaps have a furniture
man unpack the crate and rub down
the cabinet. Joe doesn’t know any­
thing about television and surely the
local dealer will show little interest in
giving him the initial service he needs,
and how to properly operate the set.
He wonders what difficulties he will
experience in getting a replacement
from the manufacturer if this particu­
lar set is defective. Of course, Joe
cannot lose in dollars more than the
total outlay for the set, hut he will lose
some good will by not dealing at home
with his fellow townsmen.
As Joe had good business judgment,
he buys the television set at home
through regular channels. He likes
the plus values of the local dealer.

There are four plus values which
exist in every successful agency:
1 The agent represents the A m eri­
can Free Enterprise System.
2. His agency attracts men of in­
tegrity and intelligence to the insur­
ance business.
3. The agent inspires confidence
in, and counsels with, the assured.
4. The agent is a ivorthy represent­
ative of his insurance companies.

Still a Vital Part

of the service, Joe hasn’t wanted to
stand the penalties of buying whole­
sale. Joe buys his suits from the local
clothing store or home town tailor
who has the best fitter available al­
though he could get suits wholesale,
too. The best recognized brands are
always available through a few she­
nanigans at the Chicago contact. A
short time ago Joe needed a new fur­
nace, but he didn’t buy it through Chi­
cago for he knew his local heating
engineering firm would carefully ana­
lyze his home heating conditions, pre­
scribe the proper type, install and bal­
ance the delicate heating mechanism
and give him years of personal instant
service.
Thus, we see that Joe decides the
personal service connected with these
tangible commodities is worthy of its
hire. He likes the plus values of the
local dealers.
When it comes to intangibles, Joe
selects the best physician in town, the
best investment counsel he can get,
and a skilled local attorney for legal
advice.

Joe has always been a good citizen
and, in making purchases where the
skill of the seller has been a vital part

Joe also buys insurance, not only
for himself and his family, but for his

Buys Insurance

Did y o u k n o w 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


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

BANK

B U IL D IN G

C H IC A G O

plant. Joe knows that his trained
insurance agent is skilled in analyzing
the soundness of companies, is thor­
oughly acquainted with the companies
he will recommend, and with their ad­
justment practices. These are plus
values for which Joe has some appre­
ciation.
Joe may not have considered, how­
ever, other plus values when he buys
from a well qualified agent in Middletown, an instant friend at time of loss,
a constant, local adviser of the chang­
ing values—both in his home and in
his plant—and the new hazards to
which the Acme Manufacturing Com­
pany may inadvertently become ex­
posed. So, Joe calls his local agent
one day and says, “Bill, we have a
quotation on fleet automobile insur­
ance for our salesmen from a firm
which would save us possibly 20 per
cent. What service is your agency giv­
ing us that should persuade our plant
to pay you more for the same protec­
tion?”
So, Plus Value Bill comes over in
person and across the desk goes over
some of the intangibles and some of
the definite services he renders.

It Is Bound
“Now, Joe, as your local agent I
represent great financial institutions.
You know insurance is a large busi­
ness; yes, larger than steel or automo­
bile manufacturing. I am a Middletown citizen who can pledge hundreds
of thousands of dollars of credit for
you right at this moment. If you au­
thorize $20,000 of insurance on the
contents of a new warehouse you have
leased down on South Street, I simply
say to you ‘It is bound’ and you are
covered. If a loss should result to-

S carborou gh & C om p a n y
In su ra n ce C ou n selo rs
3, I L L I N O I S

STATE

to B a n k s

2 43 2 5

Nort hwest ern Banker, January,

1950

56

Insurance

Yes, it is time to consider the
many

values

we

cherished

through the year just past— our
friends and our ability to serve
them.

night under one of the perils insured,
my companies would pay you.
“You see, Joe, the priceless ingredi­
ent in any business relationship is the
seller’s integrity and loyalty to your
best interests. Strange as it may seem,
although I am known as an agent of
my insurance companies, I am essen­
tially your agent. I analyze your needs
and at your instruction place insur­
ance in the companies I represent, the
insurance which you and I agree is
necessary for your protection. My
companies are financially sound and
will accept all of your insurance order
given through me.
“To my years of experience and my
training is added the loyalty to your
best interests before the contract is
recommended, in its placing and in its
constant servicing. Joe, do you realize
that I not only recommend that my
companies trust you, but I vouch for
you—even guaranteeing the payment
of your account—and if you do not
pay me in the first 30 days, I advance
the money for you. The 24 hours a
day service you receive from the in­
stant I bind the coverage must con­
tinue uninterrupted.

Plus Values
It is also time to take stock of
our ability to render the same
good service, or to improve the
guality of the aid we can offer
our clients.
Here at Western we are proud
of the fine men and women who
represented us last year and

“The plus values, Joe, you get from
me as a resident insurance agent in
your home town are not available at
any price in any other place. If I let
you down, if I should ever err in hon­
est judgment, I might lose your busi­
ness. I can’t afford to do that. The
geography of my business area is re­
stricted. If any insurance company
should lose your business, it is only
one of many thousands of accounts,
but I must live, eat and sleep fitfully,

thinking of your business hazards and
the ways of preventing you from loss
due to insurable hazards.”
Joe Brown appreciates these plus
values which are rendered by his local
insurance agent. He is a man of good
business judgment.—The End.

Assistant Treasurer
California Trust Company’s board
of directors has elected Golden R.
Larson assistant treasurer, Frank L.
King, president, announces. A mem­
ber of the Trust Company’s staff since
last May, Mr. Larson was formerly
associated with the War Assets Ad­
ministration as chief of the budget
division and from 1933 to 1943 was
review examiner with the Federal
Deposit Insurance Corporation, Wash­
ington, D. C.

New Quarters
In a move that provides improved
accommodations for customers of its
34th Street Office, Central Hanover
Bank and Trust Company, New York,
has opened in new quarters on the
southwest corner of 34th Street and
Madison Avenue. The new offices are
at 34 East 34th Street, diagonally
opposite from the former location.
The banking floor has 12 tellers,
positions, with the popular style of
open counters. The main floor also
includes a large officers’ platform and
a conference room which is informal­
ly furnished for the convenience of
visitors to the bank. The entire floor
is paneled in Appalachian white oak
and the ceilings are acoustically
treated.
The lower floor includes -complete
safe deposit facilities, with coupon

look forward to another fine
year of service throughout the
mid-west.
agency

We

feel that our

contract allows com ­

plete protection to every policy­
holder and agent.

WESTERN MUTUAL
INSURANCE COMPANY

Write for Facts
On Agency Contracts
Strictly An Agency Company
« AUTOMOBILE
• WORKMEN'S COMPENSATION
. PUBLIC LIABILITY INSURANCE

ALLIED M U T U A L
CASUALTY COMPANY
Ninth & Grand

Des Moines 8, Iowa

Harold S. Evans, President
4th and Park Streets

Northwestern Banker, January, 7950


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

Des Moines 9, Iowa

Insurance
booths for customers and a conference
room. There is also a spacious board
room which is available for corporate
meetings, trade organizations and
other groups.
Ample provision has been made on
the mezzanine for the employes. Two
lounges, one for men and one for wom­
en, are connected by a kitchenette
where the employes may prepare and
eat their own lunches.

Becomes Cashier
Irving W. Lonergan, formerly an as­
sistant cashier of the First National
Bank in St. Louis, has been named
cashier. He succeeds C. B. (Ben)

Q,

In 1925 Gilmore established a
trust with a Minnesota bank to pro­
vide monthly payments for life to his
daughter. At her death the remainder
was to go to his grandchildren. In
1948 the bank filed its account of the
administration of the trust from its
inception.
Exceptions were taken
thereto because of losses sustained on
certain securities bought by the trus­
tee from its bond department. The
trust instrument provided that as to
trust investments in securities held by
the bank it should be entitled to its
regular commission thereon and the
bank resisted the exception by assert­

5i

ing that such provision permitted self
dealing. Should it be sustained?

No, according to a recent Minnesota
Supreme Court decision involving sim­
ilar facts. In so holding the court
pointed out that the rule of law against
self dealing in trust matters is so well
established and so strictly applied that
there could not be read into the instru­
ment by implication a waiver of such
law in the circumstances. If a settlor
intends to waive the protection af­
forded by law against self dealing by
a trustee he must say so* in clear and
unmistakable language.

1900— 1950

OUR

ANNIVERSARY

W e thank our many banker agents for their
friendship, encouragement and cooperation
during the past 50 years. To each of you, we
rededicate our resources and all our energies
in continued service.

IOWA MUTUAL INSURANCE COMPANY
IOWA MUTUAL CASUALTY COMPANY
De Witt, Iowa
AGENCY COMPANIES

MULTIPLE LINES

IR V IN G W . L O N E R G A N
Cashier of the
First N ational Bank, St. Louis

Schmidt who retired under the bank’s
retirement and pension plan.
Mr. Lonergan began his banking ca­
reer in 1906 as a runner for the old
National Bank of Commerce. Subse­
quently he was an employe of the
former Mercantile National Bank and
the St. Louis Union Trust Company
before becoming associated with the
First National Bank in St. Louis in
1919. For many years he was an as­
sistant cashier and manager of the
bank’s foreign department. In 1941
he transferred to the commercial de­
partment.

LEGAL QUESTIONS
AND ANSWERS
(Continued from page 26)
streets and that the state was acting
within its constitutional rights in pro­
hibiting the maintenance by the cities
of parking meters which called for
payment for the use of the streets.

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

A g e n t s Li ke O u r
Compani es . . .

because they Get All 3
Hawkeye-Security-Industrial is working constantly to build
more sales for agents.
Every service is provided to help agents step-up production,
providing service without red tape . . . prompt, equitable
settlement of claims . . . skilled field representatives to work
closely with all agents.
Yes, here are three fine companies to do business with.

HAW KE YE ¿^ C A S U A LT Y
S E C U R I T Y HU F I R E
IN D U ST R IA L < ^ >

CO.

IN S . C O .
IN S.

CO.

Nort hwest ern Banker, January,

1950

58

tatement

ofCondition
December 31, 1949
RESOURCES

Cash and Due from Banks..................................................................... $111,212,573.03
U. S. Government Obligations*............................................................ 137,243,106.37
Other Bonds and Securities*.................................................................. 25,170,569.66
Loans and Discounts.............................................................................. 100,990,962.60
Stock in Federal Reserve Bank.............................................................
450,000.00
Customers’ Liability on Acceptances....................................................
1,503,998.02
Income Earned but not Collected.........................................................
1,005,093.04
Banking House........................................................................................
2,800,000.00
Other Resources......................................................................................
88,123.36
Total Resources........................................................................ $380,464,426.08
LIABILITIES

Capital Stock...........................................................................................$ 5,000,000.00
Surplus................................................................
10,000,000.00
Undivided Profits...................................................................................
3,177,621.41
Reserve for Contingencies......................................................................
3,518,185.90
Reserve for Interest, Taxes, etc.............................................................
1,662,616.27
Income Collected but not Earned.........................................................
1,532,144.52
Letters of Credit and Acceptances........................................................
1,503,998.02
Deposits................................................................................................... 354,069,859.96
Total Liabilities........................................................................ $380,464,426.08
*United States Government and other securities carried at
$60,594,197.46 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 t io n a l B a n k o f M in n e a p o lis
Marquette Avenue

Sixth to Seventh Streets

Member Federal Deposit Insurance Corporation

•

Affiliated with Northwest Bancorporation

D IR E C T O R S
Ja m e s F. B ell

T homas L. D a n ie ls

C h a ir m a n , C o m m itte e on
F i n a n c e a n d T e ch n o lo g ica l
P r o g r e s s , General Mills, Inc.

B enton J. C ase
D ir e c to r , Janney, Semple,
Hill & Company

P r e s id e n t ,

The D ayton Company
S teph en P. D uffy
P r e s id e n t,

C larence R. C h a n e y
V i c e C h a ir m a n o f B o a r d ,

Northwestern National
Bank of Minneapolis
G eorge B. C lifford , Jr .
T r e a s u r e r , The Cream of
W heat Corporation

Our Own Hardware
Company
J ohn B. F a egr e
Faegre and Benson,
Attorneys
F r an k T. H effelfinger
C h a ir m a n o f B o a r d ,

F. H . Peavey and Co.
F. P e a v e y H effelfinger

Joh n C rosby

Northwestern

P r e s id e n t ,

Archer-Daniels-Midland
Company
G. N elson D ayt o n

D ir e c to r ,

E x e c u tiv e V i c e P r e s id e n t

General Mills, Inc.

F. H . Peavey and Co.

Banker, Ja n u ar y ,


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

1950

C larence E. H ill
C h a ir m a n o f B o a r d ,

Northwestern National
Bank of Minneapolis
F r an k P. L eslie
V ic e P r e s id e n t a n d
T r e a su r e r ,

The John Leslie Paper Co.
R obert F. P ack
C h a ir m a n o f B o a r d ,

Northern States Power
Company
Joh n S. P illsbu ry
C h a ir m a n o f B o a r d ,

Pillsbury Mills, Inc.
Joseph F. R ingland
P r e s id e n t, Northwestern
National Bank of
Minneapolis

L ucian S. S trong
P r e s id e n t a n d T r e a su r e r ,

The Strong Scott
Manufacturing Co.
D .J . S trouse
R e tir e d

H arold W . S w e a t t
P r e s id e n t ,

Minneapolis-Honeywell
Regulator Company
H arold H. T earse
V ic e P r e s id e n t a n d G en era l
M an ager,

Searle Grain Company
J. C am eron T homson
P r e s id e n t ,

Northwest Bancorporation
V a l e n t in e W urtele
P r e s id e n t ,

Minnesota Paints, Inc.

59

Minnesota

N. A. WELLE
President
Bemidji

ROBERT E. PyE
Secretary
Minneapolis

Leonard P. Peterson, who has accepted
Several important changes were a position as vice president of The
Montana National Bank of Havre,
made in the official staff of the Winona
Montana.
National and Savings Bank, Winona,
A native of Emmetsburg, Iowa, Mr.
Minnesota, last month following the
death of E. L. King, Sr., 72, president. Boies began his banking career in
E.
L. King, Jr., was advanced from 1927 with the former First Minneap­
vice president to chairman of the olis Trust Company, and since then
hoard of directors and S. J. Kryzsko has been associated with the Iowa
was elected president, his former posi­ Trust and Savings Bank at Emmets­
tion being executive vice president burg, the Brenton State Bank at Dallas
and trust officer. He will also continue Center, Iowa, and the Brenton County
Bank & Trust Company at Vinton,
as senior trust officer.
Other official changes include the Iowa.
For the past several years he has
naming of John Ambrosen as vice
president in addition to his present been engaged in the mercantile busi­
duties as cashier; the promotion of ness in Wisconsin and recently has
E. W. Miller, former senior assistant spent some months in California.
cashier, to assistant vice president;
New Cashier at Luverne
the promotion of W. P. Theurer from
George W. Goodell has been elected
assistant trust officer to trust officer,
in addition to present title of assistant cashier of the First National Bank of
cashier, and W. M. Lambert’s advance­ Luverne, Minnesota, succeeding G. P.
ment from assistant cashier to senior Bauman, who resigned recently.
The bank name was changed from
assistant cashier.
E. L. King, Sr., had been president Luverne National Bank to the present
of the Winona Savings Bank since name on January 1, 1950.
1914 and president of the merged
banks since 1928 when the consolida­ Increase Edgerton Stock
Stockholders of the State Bank of
tion took place. Mr. King also had
been associated with the J. R. Wat­ Edgerton, Minnesota, recently voted to
kins Company in Winona since 1904, increase the capital stock of the bank
serving there as president from 1931 from $25,000 to $50,000.
to 1944 when he retired and was suc­
ceeded as president by his son, E. L.
With Owatonna Bank
King, Jr.
Philip C. Johnson, former cashier
and manager of the Gevena State Bank
at Geneva, Minnesota, has been made
Co mplete Remodeling
Remodeling operations in the City assistant cashier of the Security Bank
National Bank of Duluth, Minnesota, and Trust Company in Owatonna.
He has also worked in the Security
were completed last month after nine
State Bank at Ellendale and was in
months of continuous work. Instead
service in the southern Pacific area
of holding an “open house” for public
inspection of the new facilities, Presi­ for 32 months during World War II.
dent H. C. Matze wrote each bank
customer and many other persons, in­ Open New Building
The new bank building housing the
viting them to come in any time and
First State Bank at Big Fork, Minne­
inspect the new quarters.
Included in the remodeling were sota, was opened last month for public
new vaults, fixtures, service rooms, inspection at an “open house.” The
bank is completely modern through­
directors’ room and increased office
out. Officers are L. M. Latterell, presi­
space.
dent; O. J. Latterell vice president,
and C. F. Gilbertson, cashier.
With Lakefield Bank
Election of Samuel P. Boies as vice
president and cashier of the Farmers
Extensive Fire Damage
The State Bank of Bricelyn, Minne­
State Bank at Lakefield, Minnesota,
sota, which recently was redecorated
recently was announced. He succeeds

Winona Bank Changes


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Federal Reserve Bank of St. Louis

at a cost of $2,500, suffered extensive
fire damage from an early morning
fire last month. Estimate of the dam­
age was set at $25,000. Workmen
made temporary repairs so that bank
operations could be resumed two days
after the fire, but E. O. Lund, presi­
dent of the State Bank, said no re­
building would be done until spring.
The main damage was done to the
rear of the building to washrooms, a
stairway and a business room.

Increase Deposit Interest
An increase to 2 per cent interest
on time savings deposits went into
effect last month at the Farmers State
Bank of Eyota, Minnesota, and the
Elgin State Bank, it was announced
by Clare Talen, president of the two
banks.
The new rate is an increase from
1% per cent.

Joins Benson Board
E. C. Alsaker of Benson was recently
appointed to the board of directors of
the First State Bank of Benson, Min­
nesota, succeeding the late C. K. Lene,
according to C. E. Gesme, bank presi­
dent.

Buys North Branch Stock
A.
F. Johnson, president of the Mer­
chants State Bank, North Branch,
Minnesota, has purchased the stock
interests of Elias Nordgren, chairman
of the board, and H. J. Anderson, vice
president.
Mr. Nordgren has served as an offi­
cer and director of the bank since
1895 when it was a privately owned
institution. It was incorporated under
the present name in 1903, he became
vice president in 1906 and president
in 1940. In 1949 he was named board
chairman and was succeeded as presi­
dent by Mr. Johnson.
Mr. Anderson has been a director
for 32 years. Mr. Johnson joined the
bank in 1918. August Nordstrom is
vice president and C. T. Braff is cash­
ier. Both are directors. John A.
Holt, St. Paul, has been elected a di­
rector, and the other vacancy is to be
filled this month at the annual meet­
ing.

Houston Cashier Retires
C. S. Johnson, who has been em­
ployed at the Security State Bank of
Houston, Minnesota, for the past 30
years, has resigned as cashier.

Returns to Detroit Falls
Kent S. Rogstad has returned to the
staff of the First National Bank in
Detroit Lakes, Minnesota, in the posi­
tion of assistant cashier.
Northwestern Banker, January, 1950

60

E IGHT employes who have served
more than 25 years with the Mar­
quette National Bank of Minneapolis
or its affiliated banks were honored
recently at a dinner of the Trail Blaz­
ers club.
Russell L. Stotesbery, president of
Marquette, presented engraved gold
watches to Frederick F. Zander, Mabel
Dahl, Edmund Jones, Gina Nilsen,
William F. Kunze, Gertrude Dordan,
Arthur W . Erickson and Lucile Evans.

The club has a total membership of
22. It is limited to employes and of­
ficers of the Marquette group of banks
who have been with the organization
more than 15 years, and was founded
a year ago by the late Ralph W . Man­
uel, to whom special tribute was paid
at the dinner.
Members with 15 to 25 years of serv­
ice were presented with specially de­
signed jeweled pins. In the 20-year
group were Ruth Anderson, Ella Hallgrain, Signor Silverness, Earl Cardie,
Carl Brackey, Merth Mortenson, Paul
Petterson, Morris Sampson, Harold
Higley and Ethelynde Kelly. In the

15-year group were Grace Johnson,
Ruth Wittich and Ronald Harrison,
Marquette cashier, who was initiated
into the club.
Arthur W . Erickson was elected
president; Signor Silverness, vice
president; Lucile Evans, secretary and
treasurer, and Paul Petterson, director
for three years.
* * *
Julian B. Baird, president of The
First National Bank of Saint Paul an­
nounced last month that one million
dollars has been transferred from un­
divided profits to surplus of The First
National Bank.
The adjustment now establishes the
First in Saint Paul’s surplus at $12,000,000 with capital remaining at $6000,000.

*

* *

Ernest G. Peterson, assistant man­
ager of the savings department at
First National Bank of Minneapolis
since 1926 retired December 31st after
50 years’ service. He has been active
in Christmas club savings work since
the club’s inception 23 years ago.

QjwsudmsmL S xcmuíl&a

Specialists in Corporate and Municipal Securities of
the Central Northwest

J. M. Dain & Company
ST. PAUL

MINNEAPOLIS

TELEPHONE ATLANTIC
Northwestern Banker, January, 1950


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Federal Reserve Bank of St. Louis

8 1 41

DULUTH
TELETYPE

MP-73

Directors of the First National Bank
of Hopkins recently authorized a call
to contractors for bids for construc­
tion of a new bank building on prop­
erty acquired by the bank in the Min­
neapolis suburb.
Walter A. Zastrovv, president, said
plans call for a one-story building,
60 by 89 feet, of reinforced concrete
and steel. The structure will have
brick and stone facing and will be air
conditioned.
* * *
\YiMiam B. Geery, 82, former gov­
ernor and chairman of the board of
the Federal Reserve Bank of Minne­
apolis, died recently in St. Paul, where
he lived. At one time he was vice
president of the former St. Paul Na­
tional Bank. He retired February 1
1937.
* * *
William R. Chapman, vice president
of the Midland National Bank of Min­
neapolis, spoke recently on “ Loans to
Small Business” at the Michigan
Bankers Association’s annual bank
study conference at the University of
Michigan in Ann Arbor.
. * * *
Arthur E. Nettum, assistant man­
ager of the North Side office of the
First National Bank of Minneapolis,
recently was elected treasurer of the
West Broadway Businessmen’s Asso­
ciation of Minneapolis.
* * *
E. O. Jenkins, president of the First
Bank Stock Corporation, spoke recent­
ly at a meeting of the Chamber of
Commerce at Cloquet, Minnesota. He
discussed the growth and develop­
ment of American banking and de­
scribed First Bank’s operations in
Minnesota, North and South Dakota
and Montana.
The First National
Bank of Cloquet is a First Bank af­
filiate.
* * *
Robert E. Conn, Jr., trust officer
at the Northwestern National Bank of
Minneapolis, recently was appointed
a member of the national military
affairs committee of the American
Legion, according to an announcement

First National Bank of Minneapolis
D IR E C T O R S

Statement o f C ondition
D ecem ber 31, 1949

Henry E. Atwood,
Atherton Bean,

President

Executive Vice President,
International M illin g Co.

Russell H. Bennett.

RESOURCES

Cash and Due from Banks
United States Government Securities

.

127,537,699.96

Other Bonds and Securities

.

26,868,479.79

Loans and Discounts....................................

.

104,700,127.64

Accrued Interest and Accounts Receivable
Customers’ Acceptance Liability

.

82.3,614.74

.

161,955.60

Other Real Estate (For Future Development
of Banking Premises) .
.
.
.

.

500,000.00

Total Resources

Bruce B. Dayton,

845,336.83

Bank Premises and Furniture and Fixtures

Other Assets

Treasurer, Meriden Iron Co.
President,
The Cream o f Wheat Corp.
John Cowles, President,
M inneapolis Star and Tribune Co.
Donald D. Davis, President,
M innesota and Ontario Paper Co.

Daniel F. Bull,

. $108,088,181.72

.

.

.

.

.

214,489.04

.

.

.

.

.

. $369,739,885.32

Secretary and Treasurer,
The Dayton Co.
Paul V. Eames, President,
Shevlin- M cC loud Lumber Co.
Harry J. Harwick, Chairman,
M a yo Association, Rochester, M inn.
John H. Hauschild, Chairman of
the Board, Chas. W . Sexton Co.
W. L. Huff, Executive Vice President,
M inneapolis-H oneywell Regulator Co.
C. T. Jaffray, Director,
First Bank Stock Corporation
John H. MacMillan, Jr., President,
Cargill, Inc.

L IA B IL IT IE S

Malcolm B. McDonald,

Capital S t o c k .....................................................
Surplus

.

. $

6,000,000.00

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

Undivided Profits

.

.

.

.

.

General Reserve for Contingencies .

.
.

.

1,933,929.86

.

2,128,712.19

.

Reserve for Interest, Expenses, Taxes, etc.
Acceptances and Letters of Credit .

14,000,000.00

.

.

.

.

3,225,046.54

.

823,614.74

Other L i a b i l i t i e s ......................................................
Demand Deposits

.

.

$287,992,604.24

Time Deposits

»

.

52,577,334.43

.

.

.

Total Liabilities

.

.

.

.

.

1,058,643.32
340,569,938.67
$369,739,885.32

United States Government obligations and other securities carried at
$59,747,244.79 in the foregoing statement are deposited to secure
public funds and for other purposes required by law.

M EM BER FED ER A L D EPO SIT INSURANCE CO RPO RA TIO N


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

•

Vice President

*

Sumner T. McKmght,

President,

S. T . M cK n ight Co.

Howard I. McMillan,

President,
O sborn e-M cM illa n Elevator Co.
S. G. Palmer, Retired
Leslie N. Perrin, President,
General M ills, Inc.
A. F. Pillsbury, Director,
Pillsbury M ills, Inc.
Arthur H. Quay, Vice President
F. B. Wells, President,
F . H . Peavey & Co.
Alfred E. Wilson, Vice President and
Chairman o f Trust Committee
C. J. Winton, Jr., President,
Winton Lumber Co
Sheldon V. Wood, President and
General M anager, M inneapolis
Electric Steel Castings Co.
Edgar F. Zelle, President,
Jefferson Transportation Co.

A FF IL IA T E D W ITH FIR ST B A N K STO C K CO RPO RA TIO N

Northwestern Banker, January,

1950

62

Minnesota News

by George N. Craig, national com­
mander.
Mr. Conn survived the Bataan death
march and three years in Japanese
prison camps. He is a past command­
er of his American Legion post and
second vice commander of the Fifth
(Minneapolis) district of the Legion.
* * *
Joseph F. Ringland, president of
the Northwestern National Bank of
Minneapolis, recently was elected by
the board of directors of the Federal
Reserve Bank of Minneapolis to serve
as the Ninth federal reserve district
representative on the federal advisory
council during 1950.
The directors appointed six new

q

CK

officers of the bank and promoted
three others.
Arthur AV. Johnson, Christian Kies,
Marcus O. Sather, George M. Rock­
well and Clement Van Nice were
named assistant cashiers. Clayton E.
Tillander was named chief examiner.
Earl B. Larson was promoted from

assistant vice president to vice presi­
dent; Harold C. Core from personnel
officer to vice president in charge of
personnel, and Maurice H. Strothman,
Jr., from assistant counsel to assistant
vice president and assistant counsel.
* * *
Three Twin Cities men were elected
to the board of governors of the new
Midwest Stock Exchange in Chicago

B A A //,

recently.
Named were Merrill M.
Cohen, of J. M. Dain & Company;
Guybert M. Phillips, of Caldwell,
Phillips & Company, and Robert M.
Rice, of R. M. Rice & Company. The
new exchange was created by a
merger of exchanges in Chicago,
Cleveland, the Twin Cities and St.
Louis.
* * *
William T. Hoy, a founder and at
one time president of the former
Northeast State Bank of Minneapolis,
died recently in Los Angeles. He was
84 years of age. Funeral services and
burial were in Minneapolis.
* * *
J. Cameron Thomson, president of
the Northwest Bancorporation, an­
nounced recently the addition of
Curtis A. Lovre of Brookings, South
Dakota, to the Banco staff as contact
officer. Mr. Lovre has been with the
Brookings branch of the Northwest
Security National Bank of Sioux Falls,
South Dakota, since 1937.
Orin Samstad, vice president and
cashier of the Union State Bank of
Montevideo, Minnesota, was named
vice president and manager of the
Brookings branch to succeed Mr.
Lovre. He has been associated with
the Banco group since 1928.
^ ijc
A group of 32 school children was
feted at the annual Christmas party
sponsored by the Girls club of the
First National Bank of Minneapolis.

Statement of Condition, December 31, 1949
RESOURCES
Loans and Discounts...................................................$ 2,975,126.05
Vaults and Fixtures.....................................................
1.00
Interest Earned Not Collected.....................................
84,087.58
U. S. Government Obligations...... $12,348,265.73
Other Bonds and Securities..........
938,182.29
Cash and Due from Banks........4,628,397.80
17,914,845.82
TOTAL................................................................'.....$20,974,060.45
LIABILITIES
C apital...........................................................................$
250,000.00
Surplus...........................................................................
500,000.00
Undivided Profits and Reserves...............................
366,022.95
Reserved for Interest Expenses and Taxes.............
96,507.11
Interest Collected Not Earned...................................
18,764.13
D eposits......................................................................... 19,742,766.26
TOTAL.....................................................................$20,974,060.45

The

Stock Yards National Bank
South Saint Paul, Minn.
M EM BER

FEDERAL

D E P O S IT

western Banker, January, 1950
Digitized forNorth
FRASER
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Federal Reserve Bank of St. Louis

IN S U R A N C E

C O R P O R A T IO N

The 65-voice bank chorus presented its
annual series of pre-Christmas con­
certs around a Christmas tree in the
bank lobby the week preceding Christ­
mas.
Customers of the Northwestern Na­
tional Bank of Minneapolis also were
“serenaded” with carols during the
week preceding Christmas. The bank’s
chorus of more than 50 voices sang
daily from a special platform erected
over a stairway of the bank. The
music was piped to affiliates of the
bank in the Minneapolis area.
An outstanding feature of the
Christmas observance staged by the
First National Bank of Saint Paul this
year was the daily noon-hour program
of Christmas music presented by the
First National Bank’s Male Chorus
Monday through Friday of the week
preceding Christmas.
The thirtyvoice Male Chorus, comprised entirely
of bank employes, was directed by
Christopher Herseth, assistant cashier.
Elsie Stokes Bookstaver, organist, and
Jacqueline Parker, soprano soloist
were also featured on the one-hour
programs.
>1« >K
Donald R. McReavy, Minneapolis
mortician and civic leader and a direc­
tor of the Third Northwestern Nation-

Minnesota News
al Bank of Minneapolis, died recently
at the age of 43. Funeral services
and burial were in Minneapolis.
4= *
Joseph F. Ringland, president of the
Northwestern National Bank of Min­
neapolis, told some 1,250 employes at
the bank’s annual Christmas party
that the 10 banks in the Northwestern
group now serve more than 300,000
accounts, including 148,000 checking
and savings accounts, about 52,000 in­
stallment loan and mortgage custom­
ers and 27,000 safe deposit box cus­
tomers.
* * *

Bank debits in the Ninth federal re­
serve district dropped 9 per cent in
November, 1949 compared with the
November, 1948, total, according to a
recent report by the Federal Reserve
Bank of Minneapolis.
Debits for the 133 cities reporting in
the Ninth district totaled $2,797,672,000, compared with $3,066,720,000 for
November, 1948.
However, for the 11-month period
ending November 30th total debits for
the district were $29,920,128,000 against
$31,638,939,000 in the first 11 months
of 1948, a drop of 5 per cent.
Minneapolis bank debits for Novem­

ber were off 9 per cent, while St.
Paul debits slumped 10 per cent. The
decrease was attributed in part to the
coal and steel strikes.
* * *
Arnold J. Ryden, Jr., cost account­

ant supervisor, at the Northwestern
National Bank of Minneapolis, recent­
ly was elected president of the Twin
Cities Harvard Business School Alum­
ni Club.
* * *
The First National Bank of Minne­
apolis during the past five years has
experienced one of the steadiest peri­
ods of deposit growth in its 92-year
history, Henry E. Atwood, president,
reported recently.
He spoke to about 900 employes of
the First National and affiliated banks
at the ninth annual “assembly” party
for officers and staff members.
In 1944, he said, “our average daily
deposits, excluding government war
loan deposits, totaled $260,000,000.
Comparable figures were $282,000,000
in 1945, $311,000,000 in 1946, $323,000,000 in 1947 and $326,000,000 in 1948.”
Deposit figures for 1949 will approxi­
mate those of 1948, it is believed, Mr.
Atwood said. The bank’s net operat­
ing earnings after taxes probably will

63

be as good for 1949 as in 1948, when
the bank had net earnings of $1,827,000, he added.
* * *
Leon L. Smith, assistant cashier of
the First National Bank of Saint Paul,
has been appointed an assistant vice
president of that institution according
to an announcement made by Julian
B. Baird, the bank’s president.
Mr. Smith entered the First Nation­
al’s service September 19, 1919, and
has worked in practically every de­
partment of the bank. He was elected
an assistant cashier January 9, 1945,
and in that capacity has been an active
loaning and credit officer.
* * *
J. Cameron Thomson, president of
the Northwest Bancorporation, testi­
fied in Washington recently before the
subcommittee on monetary, credit and
fiscal policies of the joint congression­
al committee on the economic report.
Mr. Thomson testified as chairman
of two special committees of the Com­
mittee for Economic Development. He
cautioned the congressional group that
the present strength of American
financial institutions will not be main­
tained unless more favorable condi­
tions for sale of stocks are created.

F irst a nd A m e r ic a n N a t io n a l B ank
OF DULUTH, MINNESOTA
STATEMENT OF CONDITION, DECEMBER 31, 1949
R E SO U R C E S
Cash on Hand and Due from B a n k s.................................... $15,701,925.71
U nited States Government Securities............................... 37,773,461.49
Municipal Securities .................................................................
3,544,197.49
Other Bonds and Securities...................................................
4,111,098.20
Loans and Discounts................................................................. 14,608,280.76
Federal Reserve Bank S tock.................................................
120,000.00
Banking House .............................................................................
1.00
Am erican Exchange P roperty...............................................
1.00
Interest Earned But N ot C ollected...................................
218,071.91

L IA B IL IT IE S
Capital Stock ............................ ..................$ 2,000,000.00
Surplus ............................................................
2,000,000.00
Undivided Profits ....................................
1,366,703.67
787,049.23
Reserves ..........................................................
Total Capital A ccoun ts..........................................$ 6.153,752.90
Reserve for Interest, Taxes and E xpenses....................
260,575.78
Discount N ot E arned.................................................................
106,445.18
Deposits :
Demand ..............................................
$46,840,700.92
Tim e ........................................................ 21,043,488.58
1,672,074.20
U . S. G overnm ent..............................
Total Deposits ............................................................. 69,556,263.70

$76,077,037.56

O FFIC ER S

B A N K IN G D E P A R T M E N T
E M M O N S W . C O L L I N S ____V ice President
J. D A N IE L M A H O N E Y ____V ice President
R O B E R T W . H O T C H K IS S . .V ic e President
H U B E R T U . M O O R E ............Vice President
W I L L A R D F. A R I O ...........................V ice Pres.
S Y L V E S T E R T. S T R A I N ....................Cashier
W I L L I A M K. A L F O R D . . .A s s t. V ice Pres.
W A L T E R L. F R E D R IC K S O N A sst. V . Pres.
H A R R Y W . G O O C H ......................... A sst. Cash.
E A R L E J. A N D R E E ....................... A sst. Cash.
JO S E P H C. J O R G E N S O N ......... Asst. Cash.


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

W I L L IS

D. W Y A R D , President

W I L L IS A . P U T M A N , Vice President
Banking Department
E D W A R D L. P A L M E R , Vice President
Trust Department

$76,077,037.56

M ORTGAGE AN D IN S T A L L M E N T
LO AN D EPARTM ENT
L. R E X H A T T E N ..................... Vice President
W A L T E R L. G R A N D Y ...................Vice Pres.
F. R U D O L P H J A C O B S O N . . .A sst. Cashier
TRUST D EPARTM ENT
C H E ST E R D. S E F T E N B E R G . . . Vice Pres.
V E R N O N K. F A L G R E N . .A sst. V ice Pres.
A R T H U R M. OV E N T I L E .A sst. Vice Pres.
M O R R IS S. K N U D S E N . . . Asst. Tr. Officer
K E N N E T H W . D E N N IS . .A sst. Tr. Officer
JO H N L. E V A N S ............................Comptroller

Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, January,

1950

64

Minnesota News

Two Minneapolis bank women re­
cently were elected to office by the
Credit Women’s Breakfast Club of
Minneapolis. Joan Peterson of the
Marquette National Bank of Minne­
apolis was named treasurer. Also
elected to office was Helen Rodgers
of the Northwestern National Bank of
Minneapolis.
* * *
Two Minneapolis bankers recently
were appointed vice chairmen of the
1950 Red Cross fund campaign in Hen­
nepin county (Minneapolis).
They are Cecil A. Burnham, assist­
ant vice president of the First Nation­
al Bank of Minneapolis, and Wendell
T. Burns, vice president of the North­
western National Bank of Minne-

apolis. Mr. Burns served as chairman
of the 1947 fund raising campaign, and
Mr. Burnham held a similar post in
the 1949 drive.
* * *
Roger Shepard, St. Paul, has been
redesignated as chairman and W . 1).
Cochran of Iron Mountain, Michigan,
as deputy chairman of the Federal
Reserve Bank of Minneapolis.
The board of governors of the Fed­
eral Reserve System, which made the
appointments, also renamed Mr. Coch­
ran as Class C director for the threeyear term ending December 31, 1952.
W . A. Denecke of Bozeman, Mon­
tana, was appointed to a two-year
term as director of the Reserve bank’s
branch at Helena, Montana.—The End.

SPECIAL OFFER
Accident Insurance, $5000 Principal Sum for
only $2.00 Paid Up in Full to the Middle of
next June.

New President at Dawson
O. S. Knudsen retired from active
duty on December 31, 1949, as presi­
dent of the Northwestern State Bank
at Dawson, Minnesota, and was suc­
ceeded by Glenn E. Blomquist as presi­
dent. Mr. Blomquist’s election took
place at the annual meeting earlier
this month.
Mr. Knudsen began his banking ca­
reer in Lanesboro, Minnesota, in 1902,
moved to Dawson in 1934 as executive
vice president and was elected presi­
dent in 1947.
Mr. Blomquist started in the First
National Bank in Dawson in 1922,
joined the Northwestern State Bank
at the time of its organization in 1931
as assistant cashier, became cashier
in 1934 and vice president and cashier
in January, 1946.
Other officers are John L. Mahlum,
vice president; Henry Globstad, cash­
ier, and Wendell Anderson and E. A.
Thronrud, assistant cashiers.

John A. Stoneburg
John A. Stoneburg, 87, former presi­
dent of the First State Bank of Cam­
bridge, Minnesota, died there last
month following a year’s illness.

MINNESOTA COMMERCIAL MEN’S ASSOCIATION
2 5 5 0 Pillsbury Ave. So.

Minneapolis 4 , Minnesota

The Northern Minnesota National
Bank of Duluth, has presented awards
to five additional employes for 25-year
service, W. F. McLean, first vice presi­
dent, announced last month.
They are Russell M. Walters, Ed­
ward E. Mitchell, Miss Ruth E. Lent,
Mrs. Josephine Siems and Mrs. Jennie
Borgeson.

Statement of Condition
as of December 31, 1949
ASSETS
First Mortgage Loans_! ).3 5 3 .9 0 5 .9 9
Loans on Passbooks-_
5 1 .2 4 8 .9 1
F. H. A. Title 1
Loans _______________
4 5 ,7 8 2 .3 6
Properties Sold on
Contracts __________
1 2 6 ,9 6 3 .5 4
Heal Estate Owned and
S e c u r itie s __________
6 3 ,0 4 2 .0 4
Investments and
S e c u r itie s __________
3 7 3 ,5 8 5 .0 0
Cash on Hand and in
Banks _______________
3 7 4 ,5 8 2 .0 9
Office B u i ld i n g ______
6 4 .7 0 8 .6 8
Furniture, Fixtures and
Equipment, Less De­
preciation _________
Deferred Charges and
Other A s s e ts _______
9 ,5 8 6 .7 5

LIAB ILITIES
C a p it a l------------------------- $ 9 ,2 0 3 ,4 8 2 .3 2
Home Loan Bank
Advances

----------------

5 5 0 ,0 0 0 .0 0

Loans in Process______

3 7 1 ,8 9 5 .1 8

Other L iab ilities______

7 .3 6 3 .2 2

Specific
Reserves $

1 ,2 0 9 .1 7

General
Reserves

2 6 8 ,5 9 0 .8 0

S u rp lu s-----

6 0 .8 5 4 .6 7

Total____________ $ 1 0 ,4 6 3 ,3 9 5 .3 6

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

St. Paul Federal Savings & Loan Association
3 5 3 Robert Street, St. Paul, Minn.
Ga. 7593
O FF IC E R S A N D D IR E CTO R S
L O U IS P E T E R S O N , President
G U S T A V C. A X E L R O D , V ice President and Attorney
A X E L A . O L SO N , Executive Secretary
DR. C A R L G. B U R T O N , V ice President
R O B E R T W . O L SO N , Assistant Secretary
R U T H D O R N , Assistant Treasurer
C H A R L E S J. F L Y N N
R O B E R T H E IN
G EO RG E H. L Y S E R

Nort hwest ern Banker, January,


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

1950

Present 25-Year Awards

To Honor Buffalo Banker
A memorial fund has been estab­
lished and two plans proposed for its
use in honor of Walter D. Oakley,
Buffalo, Minnesota, banker, who died
at the age of 71 recently.
Mr. Oakley was a pioneer of Buf­
falo and served in many public offices
in the town during his lifetime.
At the time of his death he was
president of the Oakley National
Bank.

Retired on Pension
Three veteran staff members of
First National Bank of Minneapolis
have retired on pension, bringing to
a close their banking careers totaling
over a century of service.
Two of those retired were Miss
Agnes C. Murphy, head switchboard
operator, and Miss Selma T. Sandeen,
of the St. Anthony Falls office. They
have been with the First National
since 1917 and 1920, respectively.
Ernest G. Peterson, assistant man­
ager of the savings department, also
retired. He joined the bank in 1899.

Minnesota News

Home Loan Mortgages

2 .1

Regulations to bar restrictive cove­
nants based on race, creed or color
in connection with home loan mort­
gages guaranteed for veterans under
the G. I. Bill will go into effect in
February, Veterans Administration an­
nounced.
The new regulations will apply to
all such covenants created and re­
corded subseciuent to February 15,
1950, and to all G. I. mortgages guar­
anteed or insured by VA after that
date. Loans guaranteed or covenants
recorded prior to February 16th will
not be affected, VA said.

Years

65

ailhDePaij

Henry H. Haynes, editor of the
De Puy Publications, which in­
clude the N orthwestern B ank er ,
the U nderwriters R e v ie w and
the I o w a -N ebraska B an k D irec­
tory , is this month completing
25 years with these publications.
Mr. Haynes came to the
De Puy Publications from the
associate editorship of Farm and
Fireside, a Crowell publication
in New York City. Prior to that,
Mr. Haynes had considerable
experience in the editorial and
advertising field dating back to
his college days at the Univer­
sity of Illinois, where he was a
member of Sigma Nu fraternity.

As applied to mortgage lenders, VA
said any guarantee issued for a loan
on property subject to a recorded
covenant barred by the regulations
would be affected in the event of sub­
sequent default and foreclosure. In
such cases the lender’s option of trans­
ferring the property to VA, which he
normally has the right to do, would
be nullified if the covenant was still
effective of record at the time of the
proposed transfer.
Also, with respect to mortgages
guaranteed or insured by VA after
February 15th, the borrower may be
declared in default on his loan, with
the entire unpaid balance immediately
due and payable, if he thereafter re-

Today, Mr. Haynes is well
known to hundreds of bankers
and insurance men throughout
the country.
It is the sincere wish of every member of the De Puy Publications’ staff that
Henry will have many more years of association with our organization.
cords such a covenant on the prop­
erty.
The type of covenants referred to
are those designed to restrict the oc­
cupancy or use of the property as to
race, creed or color. VA said the new

regulations are being issued to bring
the agency’s loan guaranty program
into full accord with a recent decision
of the United States Supreme Court.
The court held that such covenants
are contrary to public policy and are

City National Bank and Trust Company
of Chicago
,

Condensed Statement of Condition— December 31 1949
RESOURCES

LIABILITIES
$

4,000,000.00

$ 93,480,322.95

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

.

175,124,383.46

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 fit s .........................

4,007,849.70

5,170,844.12

Reserves for Interest, Taxes and
C o n t in g e n c ie s .........................

2,701,481.36

Cash and Due from Banks .

.

U. S. Government Securities

.

Loans and Discounts

73,097,400.29

. . . .

240,000.00

Dividend payable Feb. 1, 1950

.

60,000.00

Accrued I n t e r e s t .........................

932,804.29

Customers' Liability on Letters of
Credit and Acceptances . .

Letters of Credit and Acceptances
Outstanding
.........................

1,154,157.90

1,148,251.17

Other L i a b i l i t i e s .........................

81,055.55

113,160.57

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

333,302,622.34

Federal Reserve Bank Stock

.

Other R e s o u r c e s .........................


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

$349,307,166.85

$349,307,166.85

M em ber Federal D eposit Insurance Corporation

Northwestern Banker, January,

1950

66

Minnesota News

not sustainable by action in the Fed­
eral courts.
The new regulations have been is­
sued to the various VA field offices
which administer the loan guaranty
program, and copies will be distrib­
uted to builders, lenders and others
participating in the program.

National City Bank
At the regular meeting of the board
of directors of The National City Bank
of New York, James V. Bohen and
Harvey S. Gerry were appointed vice
presidents. Both were assistant vice
presidents and have been with the
bank for their entire business careers,

Mr. Bohen having a service record of
more than 33 years and Mr. Gerry
one of 20 years. Mr. Bohen is in
charge of the bank’s foreign exchange
department and Mr. Gerry, who is sta­
tioned in Paris, represents the bank
on the continent of Europe.
The following were appointed assist­
ant vice presidents: Leland S. Brown,
Sven Borup Jensen, John C. Slagle,
John E. Thilly, Clarence S. Welch,
Thomas R. Wilcox and Allen F. Maybee.
The following were appointed as­
sistant cashiers: Robert M. Goodwin,
Curtis P. Nunn, William E. Preston
and Robert F. Stanton.

3 l BANK

at the

Y A RD S

STATEMENT OF CONDITION
At the close of business December 31, 1949
RESOURCES
Loans and Discounts......................................................................................................$ 4,070,673.03
United States Bonds and Notes................................................................................... 12,424,384.54
M unicipal Bonds .............................................................................................................
769,350.87
Other Bonds and Securities.........................................................................................
864,486.05
27,000.00
F ederal R eserve Bank Stock.......................................................................................
Interest Earned, Not C ollected .....................................................................................
84,895.50
Cash on Hand and Due from Banks......................................................................... 8,266,973.48
$26,507,763.47
LIABILITIES
C apital Stock .......................................................................................... $400,000.00
Surplus
....................................................................................................... 500,000.00
U ndivided Profits ....................................................................................... 84,936.13
R eserve for C ontin gen cies.................................................................... 163,093.57
Total Capital A ccou n ts.................................................................................$ 1,148,029.70
Reserve for Interest, Taxes and E xpenses..............................................................
64,720.53
Interest C ollected, Not E arned...................................................................................
43,729.48
Deposits ..........................................
25,251,283.76
$26,507,763.47
CARL L. FREDRICKSEN
President
CLIFFORD L. ADAMS
V ice President
JAMES L. SMITH
Asst. C ashier and Auditor

á

MARK A. WILSON
Vice President

WILLIAM C. SCHENK
Asst. V. Pres, and C ashier
KINLEY W . SMITH
Asst. C ashier

JOHN S. HAVER
Asst. C ashier
STANLEY W . EVANS
Asst. Cashier

Live Stock
National Bank
4 SIOUX CITY

M EM B ER 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

Northwestern Banker, January,


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

1950

Dawson Changes
Orva S. Kundsen, president of
Northwestern State Bank of Dawson,
Minnesota, has announced his retire­
ment. Directors of the bank have
elected Glen E. Blomquist to the post
of president and advanced Henry
Globstad from assistant cashier to
cashier.
Mr. Knudsen started work at the
Scanlan-Habbarstad Bank, Lanesboro,
Minnesota, in 1902. He left the vice
presidency of that bank to become ex­
ecutive vice president of Northwest­
ern State Bank of Dawson in 1934 and
was elected president of the latter
bank in 1947.
Glenn Blomquist started work at
Northwestern State Bank, Dawson, in
1931, when he was elected assistant
cashier. He was made cashier in 1934
and vice president and cashier in 1947.

Chairman of the Board
John M. Shrader, president of the
First National Bank, Marshal, Minne­
sota, since 1939, has been advanced to
chairmanship of the board of that
bank; and Kenneth E. Sheffield, vice
president of the bank since 1946, has
been elected president.
Mr. Shrader reached normal retire­
ment age in September, 1949. He was
elected cashier of the First National
Bank, Marshall, in 1923 and served
with the bank continuously since that
time. Before that he had been vice
president of the Marshall State Bank
from 1918 to 1921.
Mr. Sheffield was born at Waverly,
Minnesota, and attended Marshall
schools. He commenced work at the
First National Bank, Marshall, as a
bookkeeper-clerk in 1918, was elected
assistant cashier in 1923 and cashier
in 1939.

American National, Chicago
Harley V. McNamara, president of
the National Tea Company, Chicago,
was elected a director of the Ameri­
can National Bank and Trust Com­
pany of Chicago at the annual stock­
holders’ meeting. He succeeds Daniel
Peterkin, Jr., president of the Morton
Salt Company, who retired from the
board after serving since September,
1940.
At the meeting of directors follow­
ing the stockholders’ meeting, three
members of the bank’s staff were ad­
vanced to new positions. In the trust
department, Howard J. Johnson, as­
sistant trust officer, was elected assist­
ant vice president. Gerald E. Keidel,
assistant manager of the foreign de­
partment, was elected assistant cash­
ier and assistant manager. Ira Frank,
Jr., of the banking department was
elected assistant cashier.

67

Wessington Bank Sold
The Farmers and Merchants Bank
of Huron, South Dakota, has pur­
chased assets of the Bank of Wessing­
ton, it was announced last month by
W. M. Griffith, president of the Farm­
ers and Merchants Bank.
Mr. Griffith emphasized that the
transaction, which is to be completed
within the next 30 to 60' days, is not
a consolidation, but simply a voluntary
liquidation by the present owners of
the bank who wish to go into other
business.
The Bank of Wessington has been
owned and operated the past 15 years
by S. P. Seiersen as president and his
two sons, Carl, vice president, and
Harold, cashier.
When the consolidation is completed
the Farmers and Merchants Bank’s
deposits will be nearly $7,500,000. The
Bank of Wessington’s deposits are
slightly more than half a million dol­
lars, capital is $34,000 and loans total
$385,000.
The Seiersen family is retaining the
Wessington Bank building, fixtures
and equipment and will operate a
check-cashing and bank messenger
service in that community.

On Vacation
Ray G. Stevens, president of the
Citizens. Bank of Vermillion, South
Dakota, is vacationing in P a l m
Springs, California, and will return
home about the middle of April.
The Citizens Bank is now in its 35th
year of operation.

Leo John Lukanitsch
Leo John Lukanitsch, 62, prominent
Fairview, Montana, banker, died sud­
denly last month.
Born in Lake Henry, Minnesota,
he was reared in New York City.
Later the family moved to St. Cloud,
Minnesota, where they lived briefly

before locating in Sisseton, South Da­
kota. There he started the banking
career which he was to pursue
throughout his entire life. In the
Citizens National Bank of that city
he rose to an executive capacity and
remained there until 1925.
Later he was an officer of the Fed­
eral Land Bank of Omaha, Nebraska,
in charge of collections in the states
of Iowa, Nebraska, South Dakota and
Wyoming. He continued his banking
connections in Hartington, Nebraska,
and Madison, South Dakota.
He organized the Fairview Bank in
Fairview, Montanta, which opened
December 6, 1941. Under his super­
vision the bank has enjoyed a steady
and continuous growth.

Bank Debits Down
South Dakota bank debits were
down 5 per cent in November. A
similar drop also was shown for the
January-November period.
The monthly report of the Ninth
Federal Reserve District showed South
Dakota debits for November at $188,226,000, compared with $198,311,000 for
that month in 1948. For the 11 month
period, debits ran $2,030,719,000, com­
pared to $2,144,494,000 in 1948.
Two major South Dakota cities, how­
ever, showed increases for the 11
months. Pierre’s debits ran 106 per
cent of last year, while Lead’s debits
were 148 per cent, or up 48 per cent.

George A. Starring
George A. Starring, 67, executive
head of the Greater South Dakota
Association and former secretary of
the South Dakota Bankers Association,
died last month from a general cancer
condition. Mr. Starring had been ill
for about two months.
Mr. Starring was born in Princeton,
Illinois, on July 13, 1882, but moved
to South Dakota with his parents at

an early age to Beadle county. After
receiving his elementary education
there he attended Huron College, re­
ceiving his B.A. in 1907, then took fur­
ther study at Chicago University.
After a number of years in educa­
tional work he became secretary of the
South Dakota Farm Bureau Federa­
tion in 1923, and in 1925 joined the
South Dakota Bankers Association,
holding this position until 1936 when
he was called upon to help organize
the Greater South Dakota Association.
He was succeeded in his South Dakota
Bankers Association post by his son,
George M. Starring, who resigned
from that post two years ago.
Mr. Starring’s work with the GSDA
has been outstanding, bringing him
recognition from all parts of the state
for his interest in all types of develop­
ment of South Dakota agriculture and
industry. In 1947 he was given the
first Distinguished Service Award
now given annually by the University
of South Dakota for the state resident
doing the most outstanding job in the
field of commerce.
In addition to his son, George M.,
he is survived by his widow and one
daughter, Mrs. Henry Kinser, Chicago.

Changes Positions
William Schmagel, who managed
the insurance department at the First
National Bank of Lemmon, South Da­
kota, for two years, has resigned to
accept a similar situation with the
Bank of Lemmon as assistant cashier.

S io u x F u lls N o tts
PARSONS of the Federal
I Reserve Bank in Minneapolis spoke
to the Rotary club on business and
agricultural conditions in the north­
west.
* * *
r-R ANK

Sioux Falls Elks lodge No. 262 took
over the advance gift drive of the
March of Dimes. John McQuillen,
vice president and trust officer of the
NorthwestSecurity National Bank,
was named co-chairman of the ad­
vance gift campaign for the benefit of
polio victims.
* * *
O. A. Bray, assistant cashier of
Northwest Security National Bank,
was installed as secretary of Sioux
Falls chapter
No. 2, Royal Arch
Masons, and as treasurer of Minneha­
ha lodge No. 5, A. F. & A. M.

THE NATIONAL BANK OF SOUTH DAKOTA
Huron
Member Federal Deposit Insurance Corporation


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

S io u x Falls

Vermillion

Affiliated xvith FIRST BANK STOCK CORPORATION
Nort hwest ern Banker, January,

1950

68

South Dakota News

F. J. Cinkle, cashier and vice presi­
dent of the National Bank of South
Dakota, was re-elected treasurer of
the Sioux Empire Fair association.
Tony Westra, agricultural and live­
stock representative of the Northwest
Security National Bank, was named
to the executive committee of the fair
organization. At the annual stock­
holders’ meeting Mr. Cinkle reported
a net gain from operations of $12,901.50 for the past fiscal year.
* * *
Tom S. Harkison, president of the
National Bank of South Dakota, pre­
sented certificates for each member of
three winning area teams in the 1949

soil and moisture contest here.
was the fourth annual event.
*

*

*

Counterfeit $10 bills made their ap­
pearance in local business places, and
police officers, bank officials and mer­
chants were alert to a rumor that
spurious $20 notes might also be
passed here. A dozen or so of the fake
tens came to the notice of W . E. Perrenoud, cashier of the First National
Bank & Trust Company and secretary
of the Sioux Falls Clearing House
association. Four of the bills showed
up in one shipment of tens from here
to the Federal Reserve Bank in Min­
neapolis.

STATEMENT OF CONDITION

N O R T H W EST SECU RITY
N A TIO N A L BANK
of Sioux Falls, South Dakota
South Dakota’s Leading Hank

RESOURCES
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and Bankers.......................................... $11,579,136.71
U. S. Government Obligations............................................... 19,256,063.97
State and Municipal Bonds....................................................
990,498.43
Other Bonds and Securities................................................... 1,741,688.05
$33.567,387.16
Stock in Federal Reserve Bank in Minneapolis..............................................
45,000.00
Overdrafts ..........................................................................................................
2,730.36
Loans and Discounts ...........................................
10,949,837.15
Commodity Credit Corp., Grain Loans.............................................................
997,177.36
Banking Houses ................................................................................................
218,386.72
Includes Banking Houses at Sioux Falls, Brookings, Cham berlain, Dell
Rapids, G regory, Huron and M adison, all clear of encum brance.

Interest Earned but Not Collected.....................................................................
Customers' Liability on Letters of Credit...............

174,786.49
30,088.00

TOTAL...................................................................................................... $45,985,393.24
LI ABI LI TI ES
Capital Stock— Common ...................................................... $ 500,000.00
Surplus .................................................................................... 1,000,000.00
Undivided Profits and General Reserves............................
464,917.96
Reserve for Interest, Taxes, and Other Expenses..........................................
Interest Collected but Not Earned................... A...........................................
Deposits:
Time ................................................................................ 7,607,635.17
Demand ........................................................................... 35,308,289.30
U. S. War Loan...............................................................
829.331.00
_
, „
Letters of Credit..............................................................................................

$ 1,964,917.96
149,361.22
95,770 59

$43.745,255.47
30,088.00

BRANCHES AT

BROOKINGS, CHAMBERLAIN, DELL RAPIDS,

Affiliated with Northwest Bancorporation
Member Federal Deposit Insurance Corporation

Northwestern Banker, January, 1950

Ralph M. Watson, president of the
Northwest Security National Bank,
announced the resignation of Curtis
A. L/ovre as vice president and man­
ager of the Brookings branch of that
institution. Succeeding him in the
Brookings bank is Orin Samstad, for­
mer vice president and cashier of the
Union State Bank of Montevideo,
Minnesota. Mr. Samstad is also a
former Watertown, South Dakota, and
Fergus Falls, Minnesota, banker.
* * *

Sioux Falls bank clearings showed
a 6 per cent increase in November,
1949 over those for November, 1948.
The figures were $24,677,007 for No­
vember, 1949 and $23,227,315 for No­
vember, 1948. Local business in gen­
eral continued to show gains.
* * *

W. C. Duffy, president of the Union
Savings Bank, became a new vice
president of the Sioux council, Boy
Scouts of America, at the scouters’
annual meeting here. He presented
the Silver Beaver award to three men
with outstanding records of service to
boyhood. Mr. Duffy, himself, is a past
recipient of this honor.
* * *
R. T. Foster, vice president and gen­
eral manager of the John Morrell &
Company plant here, was host to 32
bankers in the Sioux Falls area at an
all day inspection tour of the Morrell
establishment. All departments and
offices were visited and processes ex­
plained to the visitors. They were
also guests at a noon luncheon.
=t=

TOTAL...................................................................................................... $45.985,393.24

GREGORY, HURON, MADISON

Mr. Perrenoud was in a group of
members of the Split Rock Lake as­
sociation escorting Gov. George T.
Mickelson on an inspection tour to
site of the proposed Split Rock Lake
east of the city.
* * *

Ross Hunt, assistant vice president
of the National Bank of South Dakota,
retired as president of the Exchange
club when succeeded by Tom Barron.
He was elected to the board of direc­
tors.
* * *

December 31, 1949


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

This

*

*

The agricultural finance class from
South Dakota State College spent a
day at the Northwest Security Na­
tional Bank studying the relationship
of banking to farming.
* * *
Tony Westra, Northwest Security
National’s agricultural and livestock
representative, was a speaker on a
Rotary club panel, reviewing the
progress of agriculture during the
past 10 years.—The End.

69

S o rtii D akota

XE W S
J. F. McENTEE
President
New England

Increase Capital Stock
Stockholders of the Drayton State
Bank, Drayton, North Dakota, last
month voted to increase capital stock
from $25,000 to $50,000. Surplus is
$50,000, undivided profits total more
than $25,000 and total capital structure
now is in excess of $125,000, with to­
tal assets of more than $1,600,000.
A previous capital increase in 1944
had boosted that figure from $15,000
to $25,000.

Bank Debits Lower
North Dakota’s bank debits were
about $8,000,000 lower for November,
1949, than for the same month in 1948.
A Federal Reserve Bank bulletin
showed bank debits for 13 North Da­
kota cities during November, 1949,
totaled $205,000,000 as compared with
$213,944,000 a year previous.
Bank debits for all of 1949 up
through November also fell behind
1948 the bulletin showed. The total
for 1949 was $2,118,308,000. In 1948
the total was $2,113,898,000’.

Two Bankers Elected

Murray A. Baldwin, manager of the
Dakota Clinic, was elected president
of the Fargo Chamber of Commerce
by the board of directors last month.
N. D. Black, Jr., publisher of the
Fargo Forum, and Adrian McClellan,
vice president of the Merchants Na­
tional Bank and Trust Company, were
renamed first and second vice presi­
dents, respectively.
Fred A. Irish, chairman of the board
of the First National Bank and Trust
Company, was renamed Chamber
treasurer.

Blanding Fisher
Blanding Fisher, 67, president of
the Ramsey County National Bank in
Devil’s Lake, North Dakota, died last
month following a heart attack. Mr.
Fisher had been in his usual health
and was at his desk in the bank when
he suffered the first attack.
Blanding Fisher was born in Wahpeton, North Dakota, on September 16,
1882. His father, Charles N. Fisher,
was the founder of the Ramsey County
National Bank.

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

C. C. WATTAM
Secretary
Fargo

Mr. Fisher attended grade school
and high school in Devil’s Lake and
attended Carleton College from 1899
to 1901. He transferred to the Uni­
versity of Minnesota from which he
graduated in 1903. Following his grad­
uation he became cashier of the Ram­
sey County National Bank, becoming
president on the retirement of his
father in 1918.
He was never married.
Mr. Fisher’s interest in banking and
finance was not confined to the insti­
tution with which he was directly
connected for 46 years. He had served
as president of the North Dakota Bank­
ers Association in 1924-1925 and had
long been a member of the advisory
committee of Reconstruction Finance
Corporation.
His brother, S. K. Fisher, is a vice
president of the Ramsey County Na­
tional Bank.

Automotive Company and was active
in the J. M. Leach Manufacturing Com­
pany, The Shell American Petroleum
Company and The Globe American
Corporation, he came to the Harris
Trust and Savings Bank as vice presi­
dent in 1928. He was made a director
of the bank in 1942 and elected execu­
tive vice president in 1946.
In 1943 Mr. Brown was president of
the Reserve City Bankers Association.
He is a former president of the Indi­
ana Society of Chicago, he is now
chairman of the finance committee of
Goodwill Industries and a director of
the Community Fund of Chicago.

Joins Banking Department
R. S. (“Dick” ) Banfield, vice presi­
dent of First National Bank of Minne­
apolis since 1945, has been trans­
ferred to fhe Department of Banks
and Bankers as of the first of this
year.

Heads Harris Trust

Mark A. Brown was elected presi­
dent of the Harris Trust and Savings
Bank, Chicago, at the board of direc­
tors’ meeting following the annual
stockholders’ meeting on January
11th.
He succeeds as president, Paul S.
Russell, recently deceased. Mr. Rus­
sell, 56, died Sunday afternoon Janu­
ary 8th. He had entered a hospital
Christmas Eve for treatment of a
respiratory ailment and in the early
afternoon he had said that he was
feeling greatly improved. Soon after­
ward a nurse found him dead in bed,
apparently of a heart attack.
Guy E. Reed, formerly vice presi­
dent, was elected executive vice presi­
dent.
Mr. Brown was born in Fairmount,
Indiana, and attended Wabash College
in the class of 1911. After extensive
business experience in Kokomo, Indi­
ana, where he organized the Kokomo

P A U L S. R U S S E L L
1894-1950

Guy E. Reed came to, the bank in
1923. He is a graduate of the Uni­
versity of Nebraska, class 1911. He
was born in Holdredge, Nebraska.
After graduation he was associated
with the University for several years
and later was in the banking busi­
ness in Lincoln, Nebraska, with the
First National Bank of that city.
Mr. Reed was elected vice president
of the Harris Trust in 1928 and made
a director of the bank in 1946. He is
chairman of the Chicago Crime Com­
mission and a trustee of the Univer­
sity of Nebraska Foundation. He is
also a trustee of Wells College, chair­
man of the American Library Associa­
tion Endowment Trustees and a direc­
tor of the Chicago Association of
Commerce. In 1941 he received the
Distinguished Service Award from the
University of Nebraska. In 1949 Mr.
Reed was awarded the Chicago Merit
Award by the Rotary Club of Chicago.
Mr. Reed is a director of American
Steel Foundries, Kawneer Company,
Universal Oil Products Company and
G. D. Searle Company.
Northwestern Banker, January,

1950

70

¡¡¡¡» ¡g

T f i e

U N IT ED
N

a

t

i o

n

a

l U

STATES
W

K

o

f

O m

a h a

1950

JANUARY

ANKING
ERVICE)

Northwestern Banker, January,


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

1950

71

district. In addition, the district may
pay off any or all of the bonds at any
time with tax money.

Davenport Bank Changes

Succeeds Father at Ponca
At the December meeting of the
board of directors of the Bank of
Dixon County, Ponca, Nebraska, F. R.
Kingsbury was elected president to
succeed his father, Clarence A. Kings­
bury, 87, who died several weeks ago.
The elder Mr. Kingsbury had prac­
ticed law in Ponca for more than 55
years and had been president of the
Ponca bank for 25 years.
F.
R. Kingsbury has been cashier
and executive officer of the bank since
1920 and is also chairman of the board
of directors of the American State
Bank at Newcastle, where his father
also had been associated for a number
of years as director.
F. A. Kingsbury, who has been as­
sistant cashier in the Bank of Dixon
County since his return from service
in January, 1946, was elected cashier.
He is a Morningside College graduate
and served three years in the Army.

New Bank at Chester
The State Bank of Chester, Nebras­
ka, commenced operations on Janu­
ary 3rd after receiving its charter
from the state banking department
last month. Capitalization of the new
bank was set at $47,250. It replaces
the Chester Co-operative Credit Asso­
ciation, now dissolved.
Officers of the bank are: G. H. Navis,
president; Ray Peake, vice president;
G. D. Van Cleef, cashier, and Willa
Van Cleef, assistant cashier.

Arthur H. Wherry
Arthur H. Wherry, 82, long-time
resident of Pawnee City, Nebraska,
died from a heart attack at his home
last month. In 1927 Mr. Wherry was
one of the organizers of the Citizens
State Bank, served as a director, and
became its president about 10 years
ago, a position he held at the time of
his death.

Named by Governor
T. H. Wake of Seward was named
by Nebraska Governor Val Peterson
to the State Building Commission, a
newly created board for the purpose
of supervising improvements to the
capitol building.

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Federal Reserve Bank of St. Louis

Mr. Wake is president of the Jones
National Bank of Seward, past presi­
dent of the Seward Rotary Club,
Chamber of Commerce, and active in
many other local organizations - and
activities.

Pick-Up Service
In an effort to give Cozad, Nebraska,
merchants more security for their
over-night cash problems, the Cozad
State Bank is now offering a new
pick-up service for after-banking hours
depositors.
Cozad merchants who find them­
selves with an over-abundance of cash
in the evening, or after banking hours,
can now call the bank or W. E. Young,
vice president, or Curtis Richey, as­
sistant cashier, and they will pick up
the money and make the deposit.

On Lincoln C. of C. Board
Carl D. Ganz, vice president and
trust officer of the National Bank of
Commerce, Lincoln, Nebraska, was
elected last month as one of the six
new directors of the Lincoln Cham­
ber of Commerce.

County Bankers Hosts
County officials were guests of the
Buffalo County Bankers Association
at the dinner meeting in Kearney, Ne­
braska, last month.
Following the dinner, the group
discussed the state deposit law as it
affects county deposits in Buffalo
county banks.
Leo Ryan, president of the asso­
ciation, announced that Kearney will
be host to the Fifth District Bankers
Association next spring, and briefly
discussed the program for the con­
vention.

Reduces Bond Interest
The Nebraska City, Nebraska, school
board last month accepted the offer of
the Farmers Bank to reduce the in­
terest rate on the district’s $70,000
debt from 2 to 1.75 per cent.
The bank, holder of the bonds, made
the offer voluntarily and not at the
request of the board.
The reduction in interest means a
saving of $175 per year to the school

Directors of the Jennings State Bank
of Davenport, Nebraska, have an­
nounced a change in top management.
H.
B. Jennings has relinquished the
presidency he has held since 1930 to
become vice president and chairman
of the board of directors.
M. M. Jennings, Sr., has moved from
vice president to president and M. M.
Jennings, Jr., will be cashier.
Dean Wight is the assistant cashier,
and Mrs. M. M. Jennings, Sr., joins
the board of directors.
The bank was started in 1894 by
W. H. Jennings, father of the presi­
dent and vicp president. H. B. Jen­
nings became president after his fath­
er’s death in 1930.

New C. of C. Officer
Vernon Weyrich, cashier of the Ne­
braska State Bank in Oshkosh, Ne­
braska, was elected vice president last
month of the Oshkosh Chamber of
Commerce.

Founders Day Meeting
Ten chapters of the American In­
stitute of Banking have already held
Founders Day Meetings as part of
the Institute’s fiftieth anniversary
commemoration, and 35 others have
definite arrangements under way for
similar meetings, it was announced by
Hartwell F. Taylor, president of the
Institute. Mr. Taylor, who is assist­
ant vice president of The Bank of
Virginia, Richmond, Virginia, stated
that many more of these Founders Day
Meetings will be held throughout the
nation between January and June,
1950. The A.I.B. is the educational
section of the American Bankers Asso­
ciation.
The purpose of the Founders Days,
according to Mr. Taylor, is to mark
the Golden Anniversary of the A.I.B.,
and to honor the founders and past
presidents of individual chapters along
with others who contributed to their
development.

Dividend

The board of directors of the First
National Bank in St. Louis has de­
clared a dividend of $1.10 per share,
60 cents of which is an extra dividend
paid December 21st to stockholders
of record December 14th, and 50 cents
payable February 28, 1950, to stock­
holders of record February 20th. The
directors also voted additional com­
pensation for employes in service prior
to January 1, 1949, equivalent to onehalf month’s salary on earnings up to
$4,000. Adjusted amounts will be paid
those in service since January 1st.
Nort hwest ern Banker, January, 1950

72

N ebraska N e w s

Lake City, Utah and Sioux City, Iowa.
He is a director and vice president of
the Nebraska Savings and Loan Asso­
ciation, director of the First National
Bank of Beatrice, Nebraska, director

M

ELVIN BEKINS was elected to

the board of directors of The
United States National Bank of Omaha
at the regular December meeting.

Mr. Bekins is president of Bekins
Van and Storage Company of Omaha
and is associated as an officer and di­
rector of Bekins’ companies in Salt

OVER SEVENTY-EIGHT YEARS OF BANKING EXPERIENCE

Statement of Condition

The First National Bank of Lincoln
LINCOLN, NEBRASKA
(ORGANIZED 1871)

At the Close of Business December 31, 1949
ASSETS
Cash and Due from Banks............................................... $13,316,994.80
U. S. Government Bonds................................................... 29,242,520.35
Other Bonds and Securities............................................. 1,833,487.35
Federal Reserve Bank Stock...........................................
82,200.00
Loans ................................................................................. 7,174,741.41
Interest Earned, Not Due...................................................
165,146.28
Bank Building and Equipment.........................................
488,470.76
Total Assets.........................................................$52,303,560.95
LIABILITIES
Capital S to ck ........................................... $1,500,000.00
Surplus ..................................................... 1,260,000.00
Undivided Profits ...................................
596,099.82

3,356,099.82

M E L V I N B E K IN S
Elected director of the U nited States
National Bank of Omaha

and member of the executive com­
mittee of the United Benefit Life In­
surance Company and a director of the
Omaha Grain Terminal Company.
Mr. Bekins won his letter at the
University of Nebraska on the basket­
ball team and was captain of the Uni­
versity baseball team in 1921. He
served in World War I in the Quarter­
master Corps, in World War II in
civilian capacities and has been on the
Army Advisory Committee for the
United States Army since 1947.
*

*

Discount U nearned...........................................................
56,774.06
Reserve for Taxes, Etc......................................................
123,578.25
Deposits ............................................................................ 48,767,108.82
Total Liabilities

$52,303,560.95
OFFICERS

GEORGE W . HOLMES . . . .

President

BURNHAM YATES
E. U. GUENZEL

.

.

. . . .

.

.

Vice-Pres. and Cashier

R- R B E C K E R Vice-President

Vice-President

.CLIIJ ORD G 'WESTON
• Vice-President
LYLE p STONEMAN . . Vice-President
G. H. C R A N E A sst. Cashier

Vice-President

R. A. GESSNER . . . .

.

HOWARD FREEMAN . Exec. Vice-President

A. C. GLANDT

.

P. R. E A S T E R D A Y ......................Chairman

M em ber Federal Deposit Insurance Corporation

Asst. Cashier

*

*

Among six Nebraskans elected trus­
tees of the Midwest Research Institute
of Kansas City, Missouri, are W. Dale
Clark, chairman of the board of the
Omaha National Bank, and .1. L. Welsh
of the Butler-Welsh Grain Company of
Omaha. Their terms will expire in
December, 1952.
*

*

The majority of bank customers to­
day are women, according to Miss
Anna T. Olsson, savings department
manager of the Live Stock National
Bank of Omaha and associated with
that bank for 31 years.
She has seen a decided change in the
trend since the days when “pop man­
aged mom and also the bank book.”
Now, women do most of the banking
YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

Nort hwest ern Banker, January, 1950


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

Nebraska

and write most of the checks, she has
discovered.
“There has been a big change since
the war.” she stated. “Women proved
they can hold down man-sized jobs
and earn their own living.”
*

*

Omaha National Bank, has been re­
elected president of the Knights of
Ak-Sar-Ben, Omaha civic organization
which is known throughout the world.
James P. Bee, former Omaha banker,
was named vice president, and F. F.
Pettis, department store executive and
also a former Omaha banker, was
named secretary-treasurer.
Mr. Millard and Mr. Pettis also were
re-elected to four-year terms on the
Board of Governors of Ak-Sar-Ben.
The Ak-Sar-Ben Bridge Corporation
also named Mr. Pettis secretary-treas­
urer. W. T). Bane is president.
*

Horne.

*

W. B. Millard, Jr., president of the

*

bank’s capital stock. About 34,300
farmers and stockmen in the four
states ultimately will share the divi­
dend, which totaled exactly $1,569,106,
according to President E. N. Van
*

Creighton

*

*

*

*

*

*

*

The Federal Land Bank of Omaha
has paid a 15 per cent dividend
amounting to more than $1,500,000 to
198 cooperative National Farm Loan
Associations in Nebraska, Iowa, South
Dakota and Wyoming, which own the

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

at

CONDENSED STATEMENT
A t the Close o f Business December 31, 1949
R E SO U R C E S
Cash and Due from B an k s........................................................................... $22,422,441.83
U . S. Government and other B onds........................................................
8,717,381.76
Commodity Credit Corporation L o an s..................
14,292,440.75 $45,432,264.34
Loans and Discounts ..................................................................................................................
20,488,683.56
Stock in Federal Reserve B a n k ...............................................................................................
75,000.00
$65,995,947.90
L IA B IL IT IE S
Capital ................................................................................................................... $ 1,250,000.00
Surplus
..................................................................................................................
1,250,000.00
Undivided Profits .............................................................................................
1,453,437.29
Reserve for C ontingencies................................................................................
400,000.00
Reserve for Taxes, etc..................................................................................................................
Deposits
..............................................................................................................................................

4,353,437.29
230,000.00
61,412,510.61
$65,995,947.90

the

In t e r -S ta te Na t io n a l B a n k

LIVESTOCK EXCHANGE BLDG.

¿Sp N .

I6TH.

AND

GENESEE

STS.

Member Federal Deposit Insurance Corporation

*

Six employes, including two vice
presidents, were made members of the
25-Year Club of the First National
Bank of Omaha recently.
The new members, bringing the
roster to 33, are Vice Presidents J. T.
Stewart, III, and O. H. Elliott; Tellers
Paul H. Burke and Carl Ericksen;
Catherine Davis of the transit depart­
ment, and Robert W. Davis of the
real estate division.
“Oldest” employe of the bank is its
board chairman, T. Tj. Davis, who has
been with the institution 45 years, ac­
cording to President Fred W . Thomas.
Mr. Thomas presented the six new
members of the club with watches at
a luncheon at the Omaha Athletic
Club.
*

alumni,

their annual homecoming gathering
recently in Omaha, were warned by
Daniel Monen, retiring president of
the Alumni Association, that Govern­
ment support of schools has “many
rough edges and hidden hooks.” Mr.
Monen is vice president of the Omaha

In the sixty years since 1890 there have been
m any that were marked by financial and com­
mercial uneasiness.
There were momentous
decisions to be made, decisions that could only
be based on vigilance, thoughtfulness and cour­
age. Down through the years the officers and
directors of the Inter-State have employed
these qualities to protect and benefit our cor­
respondents and depositors.
They are your
assurance that a correspondent banking con­
nection at the Inter-State stands for safety,
security and whole-hearted cooperation.

*

Santa’s mail box for 28 children at
the Creche Home in Omaha was at the
The
Omaha National Bank again.
bank’s 258 employes saw that the
Creche youngsters did not go without
gifts after the children wrote their
“lists.” Nearly everybody wanted
xylophones and the girls also were
partial to bride dolls. Christmas came
December 22nd for children at the
home.

*

73

Vigilance, Thoughtfulness and Courage

T. Bruce Robb, manager of the de­

partment of research and statistics for
the Federal Reserve Bank of Kansas
City, spoke before the Omaha Down­
town Kiwanis Club at a luncheon re­
cently at Hotel Fontenelle. His topic
was “ Let’s Look at the Current Busi­
ness Situation.”

*

University

New s

STATEMENT OF CONDITION
DECEMBER 31, 1949
RESOURCES
Loans and Discounts___________$12,082,639.72
Overdrafts ..............
38.21
Banking House .......................
85,000.00
U. S. Bonds............................. 12,084,000.00
Other Bonds..........................
25,000.00
W arran ts...................................
116,442.36
War Savings Stamps......... ......
300.00
Stock Federal Reserve Bank.
37,500.00
Other Assets .................
19,804.65
Cash and Sight Exchange____
6,988.017.77
Due from Federal Reserve
B ank....................................... 6.279,986.81

LIABILITIES
Capital ................ $600,000.00
Surplus __________ 700,000.00
R ese rv es_________ 550,000.00
Undivided Profits 165,238.78
Reserve for Dividends...........
Deposits _____ $34,981,227.59
War Loan
Deposits . .
686,263.15

2,015,238.78
36,000.00

35,667,490.74
$37,718,729.52

$37,718,729.52

NATIONAL BANK of COMMERCE
LIN C O LN , N EB R A SK A
47 years at 13th and O St reet s
Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, January,

1950

74

Nebraska News

National Bank, in charge of the trust
department.
Speaking at the homecoming ban­
quet at the Fontanelle Hotel, Mr.
Monen urged alumni to support
Creighton to keep the university a
private school.
*

*

In addition to capital and surplus
of $27,500,000, the Republic National
Bank will have undivided profits of
$2,500,000, giving it a capital, surplus

*

Mr. and Mrs. John F. Davis were

guests on their wedding anniversary
recently at a dinner given by Mr.
Davis parents, Mr. and Mrs. T. L.
Davis. John Davis is vice president
of the First National Bank of Omaha,
of which his father is board chairman.
Mr. and Mrs. T. L. Davis also enter­
tained at a dinner recently to honor
their son-in-law and daughter, Mr. and
Mrs. John 1/auritzen, on their tenth
wedding anniversary. Mr. Lauritzen
is a vice president of the bank.

Profit-Sharing Plan

To Increase Capital
And Surplus
The importance of Dallas as a ma­
jor financial center, and the Republic
National Bank as a leading bank in
the Nation was further enhanced last
month when plans were proposed for
increasing the capital and surplus of
the Republic National Bank to $27,500,000, which will result in the bank
having capital, surplus and undivided
profits of $30,000,000.

FRED

F. F L O R E N C E

President
Republic N ational Bank
D allas

and undivided profits
Further, the bank will
for contingencies of
stockholders will have

of $30,000,000.
have a reserve
$2,500,000 and
full ownership

The First National Bank
St. Joseph, Missouri
STATEMENT

OF

of the capital of the Republic National
Company, amounting to $3,000,000.
In making the announcement of the
proposed capital increase, Fred F.
Florence, president of the Republic
National Bank, stated that the unusu­
ally strong capital structure will en­
able the bank to maintain its favorable
position in the handling of the grow­
ing volume of business in the south­
west. Mr. Florence also pointed out
that such a large capital structure will
add strength to the basic foundation
of banking and business throughout
the entire southwest, and will be an
important contribution toward the
maintenance of Dallas as a financial
center.

CONDITION

at the close of business December 31, 1949
RESOURCES
Cash and Due from Federal Reserve and Other Banks.......................... $ 8,554,529.72
U. S. Government Obligations..................................................................... 16.505,654.86
Other Bonds and Securities......................................................................... 1,876,110.15
Federal Reserve Bank Stock.......................................................................
30,000.00
Loans and Discounts.................................................................................. 3.950.961.95
Bank Building, Fixtures and Other Real Estate..........................................
1.00
Interest Earned Uncollected and Other Assets..........................................
91,274.14
$31.008,531.82
LI ABI LI TI ES
Capital ......................................................................................................... $ 500.000.00
Surplus .........................................................................................................
500.000.00
Undivided Profits ........................................................................................
351,112.96
Reserve for Contingencies..........................................................................
68,971.18
Reserves for Taxes, Dividends. Etc............................................................
64,923.15
DeP°sits ........................................................................................................ 29,523,524.53
Total....................................................................................................$31.008,531.82
MEMBER OF FEDERAL DEPOSIT INSURANCE CORPORATION

A new profit-sharing bonus plan for
employes of the Bank of America, a
plan which combines all of the bank’s
benefit plans in one, has been ap­
proved by the board of directors, ac­
cording to L. M. Giannini, president.
It will be known as the Bankamerican
Family Estate plan and became effec­
tive January 1, 1950.
A percentage of the bank’s profits
before taxes is paid into a fund which
will provide for the costs of all bankprovided benefit funds, such as group
insurance, hospital and surgical bene­
fits and sickness compensation, and
for most of the premiums on retire­
ment plan benefits. By eliminating
pay check deductions for such benefits
the plan will result immediately in
higher pay checks for all employes,
regardless of length of service. For
employes with more than five years
of service the remainder of the fund
will be devoted to creating individual
employe income-producing estates to
provide substantial additional income
after retirement.
This plan is not a non-contributory
one, Mr. Giannini pointed out, and is
therefore of interest in today’s discus­
sion of pension plans. It is directly
related to the profit-producing efforts
of staff members. If such efforts fail
to produce sufficient funds, he said,
the employes will be called upon to
resume paying directly for their bene­
fits. On the other hand, any increased
profits they produce are shared, thus
providing employes with incentive for
extra effort in building the institution
and their individual estates.

BANKS

Bought and Sold

Cwnfldantlally and with ba^miing dlanity

BANK EMPLOYEES PLACED
44 Y e a rs S a tis fa c to ry S e rv ice

CHARLES E. WALTERS CO.
OMAHA. NKBRAiKA

Nort hwest ern Banker, January,


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

1950

Nebraska

000 since June, and time deposits of
individuals, partnerships and corpora­
tions of $18,936,000,000, a decrease of
$73,000,000. Deposits of the United
States government of $2,022,000,000
were $574,000,000 more than in June;
deposits of states and political subdi­
visions of $5,183,000,000 showed a de­
crease of $216,000,000, and deposits of
banks of $7,717,000,000 were $771,000,000 more than in June. Postal savings
deposits were nearly $4,000,000 and
certified and cashiers’ checks were $1,105,000.000.
Net loans and discounts on Novem­
ber 1, 1949, were $23,439,000,000, which
was $861,000,000, or nearly 4 per cent
more than the amount reported for
June 30th, but $380,000,000 less than
at the end of 1948. The percentage of
loans and discounts to total assets in
November was 26.50, in comparison
with about the same ratio in June,
and 27.03 in December, 1948.

American National
Frank 0. Prior, vice president and
director of the Standard Oil Company
(Ind.), was elected a director of the
American National Bank and Trust
Company, Chicago, a special meeting
of the bank’s board of directors.
Mr. Prior was born at Escondido,
California, in 1895. He was graduated
from Stanford University in 1918. He
served in the U. S. Army during World
War I and began his oil industry ca­
reer with the Midwest Refining Com­
pany, Casper, Wyoming, in 1919.
In 1928 he was appointed chief engi­
neer and general operating superin­
tendent of the Dixie Oil Company, Inc.,
Shreveport, Louisiana. He was elected
director and vice president in charge
of operations in 1929 and president of
the company in 1930. Mr. Prior be­
came the first president of Standolind Oil and Gas Company in Decem­
ber, 1930. He has been vice president,
director and a member of the execu­
tive committee of Standard Oil Com­
pany (Ind.) since January, 1945.


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Federal Reserve Bank of St. Louis

Cash of $1,069,000,000, reserves with
Federal Reserve Banks of $10,609,000,000 and balances with other banks of
$7,999,000,000, a total of $19,677,000,000,
decreased nearly $700,000,000 since
June.

The CONTINENTAL NATIONAL BAMOFLINCOLN

The total assets of national banks
on November 1, 1949, amounted to
more than $88,000,000,000 it was an­
nounced by Comptroller of the Cur­
rency Preston Delano. The returns
covered the 4,988 active national banks
in the United States and possessions.
The assets were $3,350,000,000 over the
amount reported by the 4,993 national
banks as of June 30, 1949, the date of
the previous call, and $300,000,000
more than reported by the 4,997 active
banks as of December 31, 1948.
The deposits of the banks on Novem­
ber 1st were more than $81,000,000,000,
an increase of nearly $3,000,000,000
since June, but a decrease of $265,000,000 since December last. Included
in the recent deposit figures are de­
mand deposits of individuals, partner­
ships and corporations of $46,416,000,000, which increased nearly $2,000,000,-

B

The banks held obligations of the
United States government, direct and
guaranteed, of $38,332,000,000, which
is an increase of $2,735,000,000, or more
than TVz per cent since June this year,
and an increase of $3,352,000,000, or
nearly 10 per cent, since last Decem­
ber. These investments were 43.34
per cent of total assets in November,
compared to 41.83 per cent in June
and 39.69 per cent in December last
year. Obligations of states and politi­
cal subdivisions held in November
amounted to $3,719,000,000, an increase
of $308,000,000 since June, and other
securities held were $2,193,000,000, an
increase of $71,000,000.

STATEMENT OF CONDITION

National Bank Assets

Í

75

News

LINCOLN, NEBRASKA
At the Close of Business December 31, 1949

RESOURCES
Cash and Due from Banks....................................................................$ 8,928,315.96
U. S. Government Bonds and Certificates.......................................... 16,951,736.87
Municipal Bonds and Warrants..........................................................
567,465.17
Other Bonds .........................................................................................
441,432.08
Loans and Discounts (Including Overdrafts)..................................... 5,441,652.76
Stock in Federal Reserve Bank..........................................................
36,000.00
Furniture and Fixtures and Safe Deposit Vaults...............................
47,708.66
Interest Earned But Not Collected......................................................
118,227.00
Customer Liability Under Letter of Credit.........................................
10,000.00
Total..............................................................................................$32,542,538.50
LI ABI LI TI ES
Capital Stock ......................................................................................... $
600,000.00
Surplus ...................................................................................................
600,000.00
Undivided Profits and Reserves..........................................................
302,082.65
Interest Collected But Not Earned......................................................
35,873.71
Reserved for Taxes, Interest and Expenses.......................................
23,231.18
Letters of Credit Outstanding..............................................................
10,000.00
Deposits ................................................................................................. 30,971,350.96
Total.............................................................................................$32,542,538.50
M em ber of Federal Deposit Insurance Corporation

i r s t N a tio n a l
O m aha
a

n

k

o

í

O ld est N a t i o n a l B a n k. F r o m O m a h a
Member Federal

H est

I p-.-u' a tire O ’^pnrai tuw

Nort hwest ern Banker, January,

1950

76

OVER 40 YEARS OF SERVICE
•

STATEM EN T OF CONDITION

OVER 400 CORRESPONDENT
BANKERS

IN

THE

PLAI NS

AND

ROCKY

MO U N T A I N

AREA

At Close of Business December 31, 1949

GREAT

OFFICERS

RESOURCES

and
DIRECTORS
H EN R Y C. K A R P F,
P resid en t
W A D E R. M ARTIN ,
V ic e P resid en t
R. H. KR O EG ER ,
V ic e P resid en t
PA U L H A N SEN ,
V ic e P resid en t
W. D EA N V O GEL,
V ic e P resid en t
H. H. ECH TERM EYER,
V ic e P resid en t
A LBE R T R. STELLIN G
V ic e P resid en t a n d T rust O fficer
JOHN M. SH O N SEY
V ic e P resid en t
C. G .. P EA R SO N ,
C a sh ie r
A . S. C H A V ES,
C om ptroller
L. V. PU LLIA M ,
A ss is ta n t C a sh ie r
ELM ER C. O LSO N,
A ss is ta n t C a sh ie r
LOUIS B A R T A ,
A s s 't C a s h ie r a n d A s s 't T rust O fficer
M A R V IN R. W ERVE,
A ss is ta n t C a sh ie r
V ICTO R W. N IELSEN ,
A ss is ta n t C a sh ie r
M A R SH A L L C. DILLON,
A ss is ta n t C a sh ie r
LESTER E. SO U BA,
A u d ito r
H. B. B ERGQ U IST,
C o a l a n d G ra in
L. S. BURK,
C h ic a g o
JA M E S J. FIT ZG ER A LD ,
P resid en t C o m m ercial S a v in g s & L o an
A sso c ia tio n
JOHN R. JIRDO N,
L ivesto ck a n d G ra in , M orrill, N e b ra sk a
LEO T. M URPH Y,
V ic e P resid en t A llie d M ills, Inc.
JA M E S L. PA X TO N , JR.
P resid en t P axto n -M itchell C o m p a n y
H ERM A N K. SC H A FE R ,
R etired
V. J. SKUTT,
P resid en t M utu al B enefit H ealth &
A ccid en t A sso c ia tio n
J. L. W ELSH,
B utler-W elsh G ra in C o m p a n y

Loans and Discounts......................................................... $21,394,260.08
C .C .C . Loans.....................................................................

2,410,351.87

Municipal and Other Marketable Securities.............

2,372,194.91

Stock in Federal Reserve Bank.......................................

60,000.00

Banking House and Fixtures........................

1.00

Other Real Estate...............................................................

None

Interest Accrued on Government Securities, etc........

195,350.52

U. S. Government Securities............... $15,065,145.89
Cash and Sight Exchange................... 21,752,701.38 $36,817,847.27

Total ...............................................................................$63,250,005.65

LIABILITIES

Capital Stock (Common)...................................................$ 1,000,000.00
Surplus (Earned)...............................................................

1,000,000.00

Undivided Profits .............................................................

1,005,636.19

Reserve for Taxes, Interest, etc......................................

273,418.60

Unearned Discount...........................................................

101,316.31

Deposits ............................................................................. 59,859,634.55
Dividend Payable December 31, 1949............................

10,000.00

T otal.................................................................................$63,250,005.65

LIVE ST CK*HBANK
0

O M A H A ,
T H E

B A N K
M em ber

of

Nort hwest ern Banker, January, 1950


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Federal Reserve Bank of St. Louis

OF
F ed eral

N E B R A S K A

F R I E N D L Y
R eserve

and

F ed eral

2 4 - H O U R
D e p o s it

In su ra n c e

S E R V I C E

C o r p o r a tio n

*

Increase Surplus Fund
The board of directors of the Citi­
zens First National Bank in Storm
Lake, Iowa, has increased the surplus
fund of that institution from $100,000
to $175,000, according to a statement
by H. W. Schaller, president of the
bank. Total capital funds exceed
$500,000.
Deposits of the Citizens First Na­
tional Bank total $6,500,000, President
Schaller pointed out.

Io w a
V M
I fJt VW WF S
J. F. KENNEDY
President
New Hampton

Group Meeting Dates
The Iowa Bankers Association’s
1950 group meetings will get under
way next month when Groups One
and Eleven meet in Sioux City and
Burlington.
Another heavy registration is ex­
pected at Sioux City when Group One
meets on Monday, February 13th. The
usual meeting date is February 12th,
but that date falls on Sunday this
year. Attendance last year was 647.
The Martin Hotel will be headquar­
ters.
Group Eleven’s meeting will be held
on Washington’s birthday, as usual,
with headquarters again being at the
Burlington Hotel. Frank C. Crone,
president. National Bank of Washing­
ton, is chairman of the group, and
C. L. Bosier, executive vice president,
Burlington Bank and Trust Company,
is secretary. Mr. Crone has appointed
H. Lee Huston, vice president, Colum­
bus Junction State Bank, as chairman
of the program committee. The eve­
ning preceding the annual meeting the
customary dinner program will also
be given. The meeting date is on
Wednesday, February 22nd.

With Burlington Bank
R. J. Nachazel was recently elected
assistant cashier of the Farmers &
Merchants Savings Bank, Burlington,
Iowa. Prior to assuming this position
he spent three years as an assistant
examiner with the Federal Deposit
Insurance Corporation. The change
was effective last month.

Reports Bank Changes
The state of Iowa department of
banking reports the following changes
have taken place recently in the status
of Iowa chartered banks:
Palo Savings Bank, Palo, increased
capital from $10,000 to $25,000 by stock
dividend.
Peoples State Bank, Missouri Valley,
increased capital from $35,000 to $52,500 by stock dividend.

FRANK WARNER
Secretary
Des Moines

Ocheyedan Savings Bank, Ocheyedan, increased capital from $25,000 to
$50,000 by stock dividend.
State Bank of Portsmouth retired
$8,000 RFC preferred stock and issued
a common stock dividend for a like
amount.

N A T IO N A L


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Federal Reserve Bank of St. Louis

BANK

B U IL D IN G

An Iowa concern whose products
come to the attention of millions of
people, particularly in the western half
of the United States, is the Dalton
Press, located at Manson, Iowa. This
firm manufactures a complete line of
12-sheet, record and apron calendars,
and specializes in commercial color
printing and binding.
The Dalton Press also handles a
complete line of advertising special­
ties and bank leather goods.
However, principally through its
calendar business, the Dalton Press is
familiar to banks, insurance and in­
vestment companies. T h e Dalton
Press was established in 1891 by the
late John F. Dalton, a pioneer Iowa
newspaper man.
In the early 1900’s, the firm began
the manufacture of calendars and also
included bank printing in its line.
Bank printing was discontinued in
1928, when the calendars became the
company’s main item of manufacture.
Another interesting fact about the
Dalton Press is that it has been under
the same family management for 59
consecutive years. At present it is
owned and managed by Joe Dalton.
Located in the small town of Man3on with a population of less than
2,000, the company’s calendars go all
over the world. Two of its employes
have been with the firm for 25 years
and Joe Dalton, the present owner,

Remodeling Completed
Dwain Loyd, cashier of the Climbing
Hill Savings Bank, Climbing Hill,
Iowa, reports the completion of that
bank’s remodeling which has been
under way for some time. This in­
cludes a new addition with basement,
heating plant and all new, low type
fixtures. The vault has been enlarged
and new fluorescent fixtures have been
installed throughout the building.

Big Crowd at Open House
Nearly 2,000 persons attended The
Home Trust & Savings Bank’s 50th
anniversary open house in Osage,
Iowa, last month. On display were
selected items from the world’s largest
coin collection (owned by the Chase
National Bank, New York City), coun­
terfeit bills next to real money of the
same denominations, and the bank’s
old documents.
Thirty-nine persons showed guests
through the bank, explained banking
operations, and demonstrated the use
of machines. Many people learned
many things about just what takes
place during various banking transac­
tions, Walter E. Sheldon, president of
the bank said.

G roup One und E ieren ilteetinf/$
Officers of Group One of the Iowa Bankers Association are now
husy making plans for the program and entertainment for the
annual meeting of Group One in Sioux City, Monday, February
13th. Headquarters, as usual, will he at the Martin Hotel.
The Group Eleven meeting will again be at Hotel Burlington
in Burlington. The date for this meeting will he Wednesday,
February 22nd.

Did you know there’s a gap in your Cash Letter
protection that you could “drive a truck through?”
Ask us how to bridge it without costing you a
cent.
F IR S T

Colorful History

C H IC A G O

Scarborough & Company
Insurance Counselors
3, I L L I N O I S

STATE

to Banks

2 4325

Nort hwest ern Banker, January,

1950

78

Iowa

News

began his career as a printer’s devil
at the age of eight.

Gives Youth Awards
Awards to Monroe county’s “out­
standing’’ 4-H boy and girl were pre­
sented last month by J. E. King, presi­
dent of the Peoples National Bank,
Albia, Iowa. The awards are based
on 4-H achievement records, character,
leadership and scholarship.
Prizes given by Mr. King were a
wrist watch to the boy, Alex Koffman,
and a cedar chest to the girl, Phyllis
Visser, both Albia High School seniors.
The awards are given annually by the
bank as part of the county’s annual
4-H banquet program.

★

Cedar Falls Promotions
Directors of the First National Bank
in Cedar Falls, Iowa, last month ad­
vanced Walter E. Brown from cashier
to vice president, promoted Hoyt C.
Messerer from assistant cashier to
cashier, and elected Elizabeth Iversen
an assistant cashier.
Mr. Brown, also a director, has been
with the bank since 1928, having been
cashier of the Aredale State Bank
previously. Mr. Messerer joined the
First National in 1940, moving from
Arlington, Iowa, where he was with
the American National Bank. Mrs.
Iversen has been with the bank since
1911, was head bookkeeper before her
recent election as assistant cashier,

★

and has been acting as auditor for the
board of directors.

B. A. Gronstal
B.
A. Gronstal, 60, former president
of the Iowa Bankers Association, died
last month in Council Bluffs, Iowa.
He had been ill several months.
Mr. Gronstal, until November, 1949,
was president of the Council Bluffs

★

Condensed Statement of Condition
DECEMBER 31, 1949
Cash
U. S.
State,
Other
Stock
Loans
Bank
Other

ASSETS
and Due from B a n k s............................................ $ 5,637,542.64
Government B o n d s.................................................
7,145,679.30
County and Municipal B o n d s.............................
1,179,425 76
Bonds and Securities............................................
43,117 43
in Federal Reserve B a n k .......................................
25,500.00
7 757 314 11
and Discounts..........................................................
Building, Furniture and Fixtures.........................
163 059 59
A s s e t s .........................................................................
34.04o’46
$21,985,679.29
B.

LI ABI LI TI ES
CaPitaI
......................................................$
S u r p l u s ...........................................................
Undivided Profits
........................................
Reserve for Contingencies..............................

400,000.00
450.000.00
149,477.03
111,500.00

Total Capital A ccou n t................................................. 3 1 110 977 03
Reserve for Taxes and Interest.......................................
69 267 05
Other Liabilities....................................................................
125 00
Deposits
..............................................................................
20,805,310.21
$21,985,679.29

%

I. T. Grant, President
H. V. Bull, Vice President
W. L. Temple, Assistant Vice President
J. R. Graning, Cashier

?

NATIONAL
BAN K

4 t

i n

E. A. Johnson, Assistant Cashier
H. H. Strifert, Assistant Cashier
K. J. Shannon, Assistant Cashier
E. E. Snell, Assistant Cashier

in SIOUX CITY

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

★
Northwestern Banker, January, 1950


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

★

★

A.

G RONSTAL
1890-1950

Savings Bank. At that time he sold
his interest to the directors of the
First National Bank and the two in­
stitutions were merged under the
name Council Bluffs Savings Bank.
A native of Estherville, Mr. Gron­
stal began his banking career there,
later going to Sprit Lake. He former­
ly was with the state banking depart­
ment, and at one time held an interest
in the Security State Bank of Keokuk.
At the time of his death Mr. Gron­
stal was a stockholder in the Carroll
County State Bank, of which a son,
Joseph H., is vice president.
Survivors include his wife, four oth­
er sons and a daughter.

Change in Bank Hours
Two Iowa banks have announced
changes in their schedule of hours
open to the public.
Directors of the State Savings Bank
at Baxter decided to keep the bank
open during the noon hour in response
to many requests. Banking hours
there now are 9 a. m. to 3 p. m. Mon­
day through Saturday.
Directors of the Rolfe State Bank
announce that institution will be
closed each Thursday afternoon.

BANKERS TRUST COMPANY
STATEMENT OF CONDITION

6th and Locust, Des Moines

December 31, 1949

RESOURCES
Loans and D is c o u n ts ........................................

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

Other S e c u r i t i e s ..............................................

6 8 5 ,6 7 6 .8 0

Municipal B o n d s ..............................................

1 .8 4 8 .8 9 1 .6 6

Stock in Federal Reserve Bank

6 0 .0 0 0 .0 0

Furniture and F i x t u r e s .......................... ......

9 0 .0 0 0 .0 0

U. S. Government Bonds $ 2 2 ,1 2 1 .6 3 8 .5 7
Cash and Exchange .

.

3 8 ,5 9 6 ,1 6 5 .0 3

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

Customers’ Liability on Letters
o f Credit and Trade Acceptances

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

LIABILITIES
$ 1.000,000.00

Capital (Com m on Stock)
.....................................................

1 .000. 000.00

Undivided P r o f i t s .................................

1,000.000.00

Reserve for Contingencies

1, 000, 000. 00

Surplus

2 1 1 ,7 7 6 .8 6

Other R e s e r v e s .................................

1 4 2 ,1 6 9 .1 7

Reserve for Taxes and Interest

5 4 ,4 5 6 ,1 5 7 .0 1

D e p o s i t s .....................................................
Bank’ s Liability on Letters o f Credit
and Trade Acceptances

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

DIRECTORS

OFFICERS

PA U L BEER

J. W .

P r e sid e n t, T h e F ly n n D a iry C o.

T H O S . A . B U R C H A M , M. D.
R a d io lo g ist

P resid en t

C. W . M E S M E R

W.

V ic e

H UBBELL

C h a ir m a n

of

N a tio n a l

th e B o a rd

B y -P r o d u c t s ,

V ic e

s.

f

V ic e

In c.

T r u s t O ff i c e r

M c G in n

P .,

M e r e d ith

H o te ls

P u b lish in g

C o.

V ic e

V ic e P r e sid e n t

A. F. E R IC K S O N
C o.

A ssista n t

S. C. P ID G E O N

3.

P resid en t

P resid en t,

A ssista n t

A tto rn ey

E s ta te

and

In v es tm e n ts

C a sh ie r

R. K. P O P P L E
A ssista n t

R. R. R O L L IN S

JO SE PH

C a sh ie r

M. N . B A IR D

C ab C o.

W I L L IA M F. R IL E Y

R ea l

C a sh ie r

B. M O N A H A N

A ssista n t

REEL

Y e llo w

P r e sid e n t

G. A . M O E C K L Y
C o.

G r e e n C o lo n ia l F u r n a c e

RUSSELL

T r u s t O ffic e r

W M . E L L IS O N

S H I R L E Y P E R C IV A L
P r e s .,

C a sh ie r

P r e sid e n t

V ic e P r e s id e n t &

E. T . M E R E D IT H , JR.
V.

&

F. S. L O C K W O O D

. M cG i n n

T a ngney

P r e sid e n t

L. N E V I N L E E

F. S. L O C K W O O D
V ic e P r e sid e n t &

P resid en t

F. C. A T K IN S

E. J. L IN D H A R T

P .,

B oard

F. W . H U B B E L L

3.

V.

th e

S. C. P ID G E O N

P r e s ., E q u ita b le L i f e I n s . C o . o f Io w a

P r e s .,

H UBBELL

C h a ir m a n o f

C a sh ie r

S. G. B A R N A R D
A sst.

S ecy.

&

T ru st

O ffic e r

F . R O S E N F IE L D

C h a irm a n o f B o a r d , Y o u n k e r B r o s ., I n c .

J O H N D. S H U L E R
P r e s id e n t , S h u le r C o a l C o .


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Federal Reserve Bank of St. Louis

Member Fed. Dep. Ins. Corp.
Member Fed. Reserve System

Northwestern Banker, January,

1950

80

Io w a

News

With Early Savings Bank
Marvin Hansen has been elected as­
sistant cashier of the Early Savings
Bank, Early, Iowa, succeeding Paul
L. Dick, who resigned to accept an­
other position last month. He had
been with the Early bank for 15
years.
Mr. Hansen has been Sac county as­
sessor for the past two years.

Four County Meeting
Bankers from Union, Ringgold, Tay­
lor and Adams counties were enter­
tained last month as guests of the
First State Bank of Diagonal, Iowa,
at a dinner and meeting. Forty-seven

persons, representing all but two of
the 16 banks and six branch banks of
the four counties, attended the dinner
and program, during which a fourcounty association of bankers was
discussed but no action was taken.

Resigns at Tingley
E. H. Kyle, cashier of the Tingley
State Savings Bank, Tingley, Iowa,
has resigned that position and will
take up his new duties as cashier of
a Sac City bank February 1st.

Announces Bank Move
Claus Loof, president of the Peoples
Trust and Savings Bank, Grand Junc­

tion, Iowa, announces that title to
another building across the street from
the present bank site has been ac­
quired and the bank will be moved
to its new offices about September 1st,
provided remodeling is completed by
that date. This operation will include
a new front, new vaults, fixtures and
safe deposit boxes.

Moves to Newton
Paul Craven, formerly assistant
cashier of the Monroe State Bank at
Monroe, Iowa, has joined the Newton
National Bank, according to O. L.
Karsten. president ofi the Newton
bank. Mr. Craven had been with the
Monroe bank for 13 years.

Fred Henderson

h i

in a rmisi

OTTUMWA,

J

u«

IOWA

Member of Federal Reserme System

Statement of Condition December 31, 1919

ASSETS
Cash on hand and on deposit with banks. .S3,397,466.22
United States Government Securities............ 4,262,696.57
United States Agency Bonds...........................
370,000.00
Municipal Bonds ............................................. 1,929,389.61
Other Bonds and Securities...........................
233,795.30 $10,193,347.70
Loans and Discounts............
Union Bank Building..............
Furniture and Fixtures............
Federal Reserve Bank Stock.
Other Assets .......................

5,303,842.96
86,500.00
26,589.38
30,000.00
3,057.96

$15,643,338.00
LI ABI LI TI ES
Capital .............................................................. $ 300,000.00
Surplus ..............................................................
700,000.00
Undivided Profits .............................................
253,506.94 $ 1,253,506.94
Dividend Payable January 3, 1950.
Deposits .............................................

21 ,000.00
14,368,831.06
$15,643,338.00

Fred Henderson, 72, a director of the
First National Bank in Lenox, Iowa,
since 1934, died last month at his farm
home near Lenox.

County Bankers Elect
J. Lawrence Henss, assistant cash­
ier of the Wayland State Bank, Wayland, Iowa, was elected president re­
cently of the Washington-Louisa Coun­
ty Bankers Association in Wellman.
At the Lyon County Bankers Asso­
ciation meeting last month, the newly
elected officers were: President, John
J. Porter, executive vice president and
cashier, Lyon County State Bank,
Rock Rapids; vice president, John
Kruse, Little Rock office of Rock Rap­
ids State Bank, and secretary-treasur­
er, Warren Anderson, manager of the
Doon office of Valley State Bank of
Rock Valley.
C. H. Budolfson, assistant cashier
of the College Savings Bank at Ames,,
was elected president of the Story
County Association’s meeting in Ne­
vada. All but one bank in the county
were represented. Other officers for
1950 include vice president, C. W.
Yeager, manager of the Colo office of
the State Bank and Trust Company
of Nevada, and secretary-treasurer, T.
F. Jacobson, assistant cashier of the
Story County State Bank at Story
City.

D IRECTO RS
J. H. A N D ER SON
S. S. B A R K E R
C. C. C O U PLA N D
C. P. GLEN N
M E R R IL L GILM ORE
T. J. M ADDEN

C. G. M E R R IL L
H. L. POLIN G
H. L. P O L L A R D
N. F. REED
F R A N K VON SCH R A DE R
M A X V O N SCH RADER

OFFICERS
M A X V O N S C H R A D E R . President
C LAR E N C E P. G LEN N , V ice President
C. G. M E R R IL L , V . P . and Trust Officer
.1. C. B L A C K FO 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
GEORGE H A L L E R , Assistant Cashier
LE O N A R D D A V ID SO N , Assistant Cashier

Serving Southern Iowa for Seventy-eight Y ears
Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, January,


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

1950

Buys Bank Building
The First State Bank, Manchester,
Iowa, has purchased for $25,000 the
building which is has occupied since
its organization in 1945. Charles Kel­
ley has been president and cashier of
the bank since its founding six years
ago.

New Chamber President
Edward Burchett, president of the
Exchange Bank in Bloomfield, Iowa,
has been elected president of the
Chamber of Commerce there.

81

STATEMENT OF CONDITION
Close of Business December 31, 1949
RESOURCES
_$ 8.085.943.40

Loans and Discounts

50.000.00
489.89

Other Bonds and Stocks ..
Overdrafts
Government Obligations
Municipal Bonds
Cash and Due from Banks

_
.

$7,177,473.97
436.500.00

_ _ 4,632,353.50

12,246,327.47
$20,382,760.76

LIABILITIES
Capital Stock— Common

_$ 1 , 000.000.00

Surplus

250,000.00

Undivided Profits

206,549.42
83,343.33

Reserves

113,195.76

Unearned Discount

_ 18.729,672.25

Deposits

$20,382,760.76

VALLEY BANK AND T R U ST CO M PA N Y
DES M O I N E S

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION


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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, January,

1950

82

Iowa

News

Resigns at Creston
Guy R. Heflen resigned last month
from his position as cashier of the
First National Bank in Creston, Iowa,
after 30 years association with the
bank. He had been cashier about 12
years, first joining the hank in 1919.
He has not announced any future
plans.
A. E. Jensen, president, announced
that Vice President Frank Locke will
now also assume the duties of cashier.

H. Wilbur Porter
H. Wilbur Porter, 72, president of
the First National Bank in Glidden,
Iowa, died last month.
Mr. Porter, well known throughout

the community, was serving his 50th
year with the bank. He was a former
mayor of Glidden.
He began working as a bookkeeper
of the bank in 1900. In 1916, he was
advanced to cashier. He had held the
presidency about 10 years.

Bankers Trust Meeting
At the annual meeting of the Bank­
ers Trust Company, Des Moines, three
changes weie announced by James W.
Hubbell, chairman of the board. F. S.
Lockwood, vice president and trust
officer, was also elected to the board
of directors; Robert K. Popple, per­
sonal loan manager, was elected an
assistant cashier, and S. G. Barnard

Statement of Condition
December 31, 1949
ASSETS
Cash on Hand and on Deposit with Banks................... $ 8,649,564.96
United States Government Securities............................. 11,028,271.32
Other Bonds and Securities.............................................
387,381.24
Loans and Discounts......................................................... 7,403,894.20
Commodity Credit Corporation Loans........................... 1,195,619.81
Security National Bank Building, Vault and Fixtures
312,547.52
Federal Reserve Bank Stock...........................................
30,000.00
Customers' Liability on Acceptances Outstanding.....
1,332.00
Other Assets ......................
11,070.19
$29,019,681.24
LIABILITIES
Capital ...............................................................................$
500,000.00
Surplus ..............................................................................
500,000.00
Undivided Profits .............................................................
228,752.38
Acceptances Outstanding...............................................
1,332.00
Deposits ............................................................................. 27,789,596.86
$29,019,681.24
O F F IC E R S
Charles R. G ossett, p r e s i d e n t
Frank H . Abel, A s s i s t a n t C a s h i e r
B. M . W heelock, V i c e P r e s i d e n t
O rville Boe, A s s i s t a n t C a s h i e r
Albert C. Eckert. V i c e P r e s i d e n t
D aniel L. M iddleton, A s s i s t a n t C a s h i e r
Daniel B. Severson, V i c e P r e s i d e n t
Paul Snyder, A s s i s t a n t C a s h i e r
R. Earl Brown, C a s h i e r
E. C. Thom pson, Jr., A s s i s t a n t C a s h i e r
Robert W . Lew is, A s s i s t a n t V . P r e s i d e n t
Charles H. W a lc o tt, A s s i s t a n t C a s h i e r
T R U S T O F F IC E R S
Howard L. Johnson, V i c e P r e s i d e n t a n d T r u s t O f f i c e r
L. C. Jensen, A s s i s t a n t T r u s t O f f i c e r

C E C U R IT T 7
of Sioux City
M em ber

Federal

Nort hwest ern Banker, January, 1950


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

D eposit

was appointed a trust officer in addi­
tion to his present duties as assistant
secretary.
The other officers of the Bankers
Trust Company, in addition to these

Insurance

Corporation

ROBERT

K.

POPPLE

Elected assistant cashier of
Bankers Trust, D es M oines

three men, are as follows: James 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,
Wm. Ellison and G. A. Moeckly, vice
presidents, and A. F. Erickson, J. B.
Monahan and M. N. Baird, assistant
cashiers
At the close of the year total de­
posits were $54,456,157. Capital stock
of the bank is $1,000,000, surplus $1,000,000, undivided profits $1,000,000
and a reserve for contingencies of
$1,211,776. Total loans and discounts
as of December 31, 1949, were $17,529,360.

Mid-Winter Meeting
The Iowa Investment Bankers Assocition will hold its Mid-Winter Meet­
ing in Davenport this year, on Thurs­
day and Friday, January 19 and 20.
The festivities will open with a cock­
tail party and dinner the evening of
the 19th, business sessions all day
Friday, with a luncheon that noon.
Adjournment will be late Friday after­
noon.
The Des Moines members of the
Association are planning to leave for
Davenport on the Corn Belt Rocket at
2:15 p.m. on Thursday, returning to
Des Moines on one of the Rockets
Friday evening.

Put in His Place
Scotchman (on shipboard, catching
sight of his fatherland): Hurrah for
Scotland.
Irishman (riled): Hurrah, hell!
Scotchman: That’s right. Every
man for his own country.

83

LIABILITIES

RESOURCES
(DECEMBER

31,

(DECEMBER

1949)

Loans and Discounts.....................$10,420,162.20
Cash ami Due from Banks.........

11,812,421.75

31,

1949)

Deposits....................................$38,602,157.54
Capital......................................

500,000.00

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

500,000.00

U. S. Government Securities. . . 15,793,816.24
Municipal and Other Securities.

1,674,965.11

Banking H ouse..............................

151,984.11

Furniture and Fixtures................

114,405.21

Other Resources............................

11,778.76


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

Total Resources.....................$39,979,533.38

Undivided Profits
and Reserves......................

377,375.84

Total Liabilities............. $39,979,533.38

THE MARQUETTE NATIONAL BANK, MI NNEAPOLIS, MINN.

R

u ssell

L ynn F uller

L . Sto tesbe r y

Executive l ice President

President

D EPA R T M E N T OF BAN K S AND BAN K ER S
O t t o H. P r e u s
Assistant Vice President

C h a r l e s C . R ie g e r

Vice President

FEDERAL DEPOSIT
INSURANCE CORPORATION

Nort hwest ern Banker, January,

1950

84

Iow a

News

D e s 31 nin es X e u 's
INFIELD W. SCOTT, senior vice
president of the Valley Bank and
Trust Company, was elected president
of the Des Moines Chamber of Com­
merce last month for the year 1950-

W

attorney, who is also a director of the
Valley Bank.
E. M. McConney, president, Bankers
Life Company; E. T. Meredith, Jr., of
Meredith Publishing Company, and a
director of Bankers Trust Company,
were re-elected vice presidents, and
Scott C. Pidgeon, president, Bankers
Trust Company, was renamed treas­
urer.
Directors re-elected for three year
terms include Herbert E. Horton, pres­
ident, the lowa-Des Moines National
Bank, and George C. Koss, also a di­
rector of the lowa-Des Moines Na­
tional Bank.
Directors re-elected for one year in­
clude Edwin F. Buckley, president,
Central National Bank and Trust Com­
pany, and R. R. Rollins, a director of
Bankers Trust Company.

banks, and a director of the lowa-Des
Moines National Bank, has been nom­
inated as a director of Swift and Com­
pany, it was announced last month by
Harold H. Swift, board chairman of
the meat packing concern. The an­
nual shareholders meeting for the elec­
tion will be January 19th.
*

*

*

F. S. Eockwood, vice president and

trust officer of the Bankers Trust
Company, was honored at the annual

>{? >fc

W IN F IE L D W . SCO TT
Elected president of the
D es M oines Chamber of Commerce

Mr. Scott has just completed a term
as vice president after being active in
the organization for many years. He
succeeds Allen Whitfield, Des Moines

James W. Hubbell, chairman of the
Bankers Trust Company, was elected
president of the Des Moines Clearing
House Association at the annual meet­
ing last month. Herbert E. Horton,
president, lowa-Des Moines National
Bank, and Edwin F. Buckley, presi­
dent, Central National Bank and Trust
Company, were elected vice presi­
dents. Fred C. Atkins, vice president
and cashier of Bankers Trust, was re­
elected secretary.
*

=!= *

W. Harold Brenton, Des Moines,

president of the Brenton State Bank
at Dallas Center, among other Iowa

Place Your Order Now for 1951

BUSINESS CALENDARS
12 Sheets
Memorandum
Advertising Specialties

Apron
System
•

Bank Supplies

Prompt Attention Given Mail Inquiries

T he Da l t d n P r e s s
Calendar Manufacturers

MANSON, IO W A

CORRESPONDENT BANKS

Quality Printing

F. S. Lockwood (left), is shown
receiving a wristwatch from James
W. Hubbell, board chairman, at
Bankers Trust Company party in
recognition of his 25 years service.

bank party recently for his 25 years
of service with that institution. Chair­
man of the board James W. Hubbell
presented Mr. Lockwood with a beau­
tiful wrist watch as a memento of the
occasion.
Two other members of the bank
staff were made members of the 10Year Club at the party. They are
Eugene Escher, teller, and Clarence
McCloud, personal loan department.
The annual affair was a dinner-the­
ater party.
*

*

*

Two lowa-Des Moines National Bank
staff members were elected recently
to official posts in the Des Moines
Junior Chamber of Commerce. Dee
Frost, trust department, was elected a
vice president, and Christy Armstrong,
credit department, was elected to the
board of directors. Mr. Armstrong
later was selected by the new presi­
dent to serve as treasurer of the Ju­
nior Chamber during 1950.
Also elected to the board of direc-

Your Interests Are Our Interests:

Contact us on any problem in which you think we can he of assistance.

THE TOY NATIONAL BANK
M em ber Federal Deposit Insurance Corporation
Nort hwest ern Banker, January, 1950


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

85

Statement of Condition
DECEM BER 31, 1949

A S S E T S
C a s h _______________________________________________$14,092,194.00
United States Government Securities------------------ 34,284,101.95

D IR E C TO R S

L o a n s_____________________________________________

23,849,149.(1

Municipal B o n d s _________________________________

6,421,997.54

Bank Prem ises___________________________________

700,000.00

Furniture and Fixtures----------------------------------------

121,541.95

Federal Reserve Bank Stock-------------------------------

138,000.00

_______________________________________

1,089.34

Overdrafts

V . O. FIGGE
P r e sid e n t

$79,608,074.49

J. M . H U T C H IN S O N
E x ec u tiv e

V ic e P r e sid e n t

L I A B I L I T I E S

C H A R L E S J. JO H N S O N
In d ep en d en t

B isc u its,

In c.

Capital

JO S. S. K IM M E L
R ep u b lic

E le c tr ic

___________________________________________$

Surplus _ _ _ _ ______________________________________

C om pan y

F R E D E R IC K H . L A M B

Reserves and Profits--------------------------------------------

P h y sic ia n

Deposits

H. E. L IT T IG

________________________

600,000.00
4,000,000.00
2,082,442.68
72,925,631.81

D a venport

$79,608,074.49

HERM AN STAAK
V ic e

P r e sid e n t

C A B L E G. V O N M A U R
P e te r s e n -H a r n e d -V o n

M a u r,

In c .

T H O M A S J. W A L S H
W a lsh

C o n str u c tio n

C. I).
Lane

C om pan y

W ATERM AN
and

D A V EN P O R T B A N K

W a term a n


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

AND T R U S T ^ ^ C O M P A N Y
d ile m b c h

R jc m w e

S_

DAVENPORT. IOWA
J

V.
M em ber Federal D ep osit Insurance Corporation

Nort hwest ern Banker, January,

1950

86

Iowa N e w s

tors was Ben Haller, Jr., associate edi­
tor of the N orthwestern B anker.
*

*

*

Five members of the Iowa-Des
Moines National Bank staff received
watches at the bank’s annual Christ­
mas party last month in recognition
of their 25 years of service with the
bank. The five now are members of
the 25-Year Club. Herbert L. Horton,
president, presented watches to the
following Baird M. Fryer, assistant
vice president, and Orville Gore, as­
sistant cashier, both of the mortgage
loan department; Clarence Reibert,
head currency teller; Maurice T. Me-

Colgin, teller, and Mrs. Elizabeth
(Betty) H. Nelson, who is known to

many Iowa and out-of-state bankers
as secretary to Erwin W. Jones, and
Everett M. Griffith, vice presidents in
the bank’s correspondent bank depart­
ment.

James F. Hart, assistant vice presi­
dent, and James Burson, assistant
cashier. Mr. Horton also announced
the retirement from the board of di­
rectors of Charles S. Bendixen, who

Iowa-Des Moines National
Elects Two Directors
Following the annual meeting at the
Iowa-Des Moines National Bank, Her­
bert L. Horton, president, announced
the election of Clifford L. Sampson
and William Friedman as directors
and the retirement on pension of
C. L. S A M P S O N
W M . F R IE D M A N
Elected Directors

BANKS FOR SALE
Several Attractive Opportunities Now Available in Iowa
and Adjoining States. Write Us Outlining Your Wants.
All Negotiations Confidential.

BANKERS

SERVICE

Henry H . Byers, President

CO.

E. M. Whisler, Secretary

1 1 08 Register & Tribune Bldg.

Des Moines 9. Iowa

V-------------------------------------------------------------------------------------------------

S TA T EM EN T O F C O N D IT IO N
December 31, 1949
RESOURCES
Cash and Due from Banks____ ________ ________________________________________ $ 3.227.712.57
Loans and Discounts___________________________________________________________
3,294,573.43
Bonds:
U. S. Governments_______ __________________________ $ 6,280,608.33
446,420.47
Federal Land Banks...........................
Municipals ................................................................... 1,029,442.23
Other Marketable Securities_______________________
809,921.72
8,566,392.75
Stock in Federal Reserve Bank.......................................................................
Banking House ...................................................................................................
Furniture and Fixtures________________________________________________________
Accrued Interest _______________________________________________________________
Overdrafts .........................................................................................................
Other Resources ..............................................................................................

19,200.00
35.257U8
9,685.02
72|447.95
660.77
4,136.28
$15,230,065.95

LIABILITIES
Capital .........................................................................
Surp lus............. ...........................................................
Undivided P ro fits......... ......................................... ..
Reserve for Taxes, Interest, Contingencies, Etc.
Discount Collected but Not Earned_______________________________________
Deposits:
Demand .......................................................................$ 9,485,266.12
Time ............................................................................. 4,340,336.55
U. S. Government War Loan Account....................
440,547.14

$

400.000.00
240,000.00
159.529.61
126.930.83
37,455.70

14,266,149.81
$15,230,065.95

,

NATIONAL

FIFTH AVENUE
SOUTH-226*

BANK
$ (ru zzi

M e m b e r o f T he F e d e r a l D e p o s it In s u ra n c e C o r p o r a t io n . W a s h in g to n , D. C.

$5,000

—

MAXIMUM INSURANCE FOR EACH DEPOSITOR

Northwestern Banker, January, 1950


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

—

$5,000

J.

F.

HART
J. B U R S O N
Veteran officers retire

has taken residence in Davenport,
Iowa.
Mr. Sampson is vice president and
general manager for Iowa of North­
western Bell Telephone Company. He
is also the newly elected president
of the Greater Des Moines Committee.
Mr. Friedman is a director and vice
president of Younker Brothers, Inc.,
and the executive head of Younkers
store for homes. He has been active
in Community Chest and other civic
affairs.
In retiring from the bank, Mr. Hart
and and Mr. Burson, widely-known
officers, round out long years of bank­
ing service. Mr. Hart, a member of a
pioneer Des Moines family, entered
the employ of the bank as a clerk in
May, 1897. He has been in charge of
the savings and safe deposit depart­
ments.
Mr. Burson joined the bank in De­
cember, 1903, as a bookkeeper. He
has been a lobby officer in the bank
administration department for many
years.
All other directors and officers were
re-elected. They are:
Herbert L. Horton, president, and
Albert J. Robertson, vice president.
Department of Commercial Banking
—John De Jong, Harry H. Sivright,
Harold P. Klein and George D. Jorgen­
sen, vice presidents, and James R.
Brown, assistant cashier.
Department of Banks and Bankers—

Iow a

Erwin W. Jones and Everett M. Grif­
fith, vice presidents. Department of
Bank Administration—Harry G. Wil­
son, vice president and cashier; Rob­
ert L. Carson, comptroller, and Clar­
ence Mickelson and W. F. Howell, as­
sistant cashiers.
Bond Department — Sherman W.
Fowler and Harry L. Westphal, assist­
ant vice presidents. Trust Department
—Clyde H. Doolittle, vice president; C.
Ream Daughrity, trust officer; Arthur
H. Keyes, assistant vice president, and
Arthur J. Petit, assistant trust officer.
Mortgage Loan Department—Orville
M. Garrett, vice president; Laird M.
Fryer, assistant vice president, and
Orville Gore, assistant cashier. In­
stallment Loan Department — Gerald
O. Nelson, vice president; Charles R.
Clift and John T. McCormick, assist­
ant cashiers.

tinnii

87

News

K nlnrtjes

4

New in Des Moines
With W. Harold Brenton as presi­
dent, the State Bank of Des Moines
opened in the northwest part of the
city on January 13. The bank is lo­
cated in what is called the Beaverdale district, a large suburban shop­
ping center. Lindley Finch, formerly
executive vice president of the Bren­
ton State Bank, Dallas Center, Iowa,
is vice president and cashier of the
institution. Other officers are William
H. Brenton, son of the president, as­
sistant cashier and head teller; Carl
Fredricksen, assistant cashier and
manager of the mortgage and per­
sonal loan departments.
The State Bank of Des Moines is
capitalized at $100,000, with surplus of
$30,000 and undivided profits of $45,000.

Harcourt Bank Sold
O. B. Lundgren, cashier of the Union
Trust and Savings Bank of Fort
Dodge, Iowa, and associates, have pur­
chased the majority of the stock in the
Harcourt Savings Bank, Harcourt,
Iowa, from J. W. Ryberg and asso­
ciates. The sale was negotiated by the
Bankers Service Company, Register
and Tribune building, Des Moines.
Mr. Ryberg will continue as cashier
and active manager of the bank
through 1950 and F. B. Walgren will
continue as assistant cashier. Mr. Ry­
berg has been associated with the
Harcourt Savings Bank for 25 years,
coming to Harcourt in 1925, when he
was elected cashier.

MORE SPACE— The First National Bank, West Des Moines, has recently com­
pleted an addition to its banking quarters, which gives the institution almost
twice the working and storage space formerly available. The new addition,
accomplished by extending the building toward the rear, has provided a two-story
area 44 feet long by 25 feet wide. On the ground or banking floor a private
office, three tellers’ cages, and three safety deposit booths have been added, sur­
rounded by a spacious lobby. Above this space are several large rooms for stor­
age and consultation.
The picture above was taken from the rear of the new addition, showing this
new room. The stairway in the background goes to the rooms above, and to the
left is the passageway leading past the vault, and to the front working quarters
of the bank.
R. M. Messerschmidt, long associated with Iowa banking in and now near Des
Moines, is president of the First National Bank.

American Trust & Savings Bank
D UBU QUE, IO W A
Organized 1905

Incorporated 1912

S T A T E M E N T O F C O N D I T I O N , D E C E M B E R 31, 1949
R E SO U R C E S
Cash and Due from B an k s............$ 4,417,502.82
U . S. Government B onds................ 10,714,938.99
Federal Reserve Bank S tock...........
19,500.00
State, County and Municipal
Bonds ...........
933,881.92
Corporate Bonds .................................
209,786.63
Loans and! D iscounts..........................
5,652,314.06
Overdrafts ...............................................
462.73
50,000.00
Bank Building .....................................
Other Assets ..........................................
348.80

F. E. DAVENPORT & CO.

$ 1,017,883.09
D eposits:
Demand .............. 10,985,989.68
Time ........................
8,911,246.19
U . S. Gov...........
1,083,616.99
20,980,852.86
$21,998,735.95

$21,998,735.95
OFFICERS

Y O U R STATE. B A N K ER S A S S O C IA T IO N
O F F IC IA L S A F E , V A U L T A N D
T IM E LO C K EXPERTS

L IA B IL IT IE S
Capital Stock . . . . $
250,000.00
400,000.00
Surplus .....................
Undivided Profits.
267,883.09
Reserves ...................
100,000.00

D. W. ERNST. President
ROY F. GLAB, First Vice President
('. .1. KLEINSCHM IDT. Vice President
A. L. VOGL. Vice President and Cashier
N. J. GRETEM AN, Vice President
M em ber
M em ber

F ed era l

F ed era l
D e p o s it

DIRECTORS
D. B. CASSAT
1). W ERNST
ROY F. GLAB
W. N. GLAB
OTTO F. HENKER
R. E. O 'R O U R K E
R eserve

S ys te m .

In su ra n ce

C o r p o r a tio n

OM AHA


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Federal Reserve Bank of St. Louis

Nort hwest ern Banker, January,

1950

88

Iowa News

Good Increase
Total assets of $15,156,869 are shown
by the year end statement of condi­
tion of the Home Federal Savings and
Loan Association of Des Moines.
The company had savings accounts
of $12,983,575 and loans of $12,726,410.
The savings account balance during
1949 showed an increase of $1,500,000.
C.
B. Fletcher is chairman of the
board, Arthur S. Kirk is president,
Jonathan M. Fletcher is executive vice
president and Dr. Lawrence E. Kelley
and John R. Buckley, Jr., are vice
presidents of the Association.

A. G. Sam Retires
A. G. Sam, long one of the leading
figures in Sioux City banking, this
month completed a career which be­
gan a half century ago.
Mr. Sam, at 67, will retire as chair­
man of the board of directors of the
First National. He was president of
the bank from 1941 to 1949. He plans

to give up all active banking affilia­ made president in 1920, and continued
tions, but will retain a directorship in in that capacity until 1939.
the bank.
Mr. Sam came to the First National
He was guest of honor recently at Bank in 1939 as vice president and
a party given at the Steak House by became president two years later. He
officers of the bank. A gold wristwatch commemorating his 50 years of
service was presented to him.
Mr. Sam, a native of LaCrosse, Wis­
consin, began his career as a transit
clerk with the old Chicago National
Bank. He remained there until 1905
when the bank closed. He then went
to the First National Bank in Minne­
apolis. In 1910 he became a bank ex­
aminer for the Twin Cities Clearing
House.
From 1915 until 1919, Mr. Sam was
associated with the Stock Yards Na- v
tional Bank in South St. Paul as cash­
ier, later as vice president. During
this time he was also vice president
of the St. Paul Cattle Loan Company.
He left there to take a position of
vice president with the Live Stock
National Bank in Sioux City and was

Farmers State Savings Bank

A . G. SA M
Retires as chairman of
F irst National of Sioux City

INDEPENDENCE. IOWA

Statement of Condition, December 31, 1949
R E S O U R C E S
C ash and Due fro m B a n k s ___________________________________________________________________________$
8 9 0 ,5 4 2 .3 9
L o a n s and D is c o u n ts _____________________________________________ ____________ _________ ______ ________ 1 ,4 4 7 ,4 4 3 .0 0
4 9 o i6 3 6 .7 1
F ir s t R e a l E s t a t e M o rt g a g e s _____________________________________________________________ _________
U . S . G o v e rn m e n t B o n d s ____________________________________________________________________________ 2 ,7 6 4 |9 6 9 .4 5
M u n ic ip a l S e c u r itie s . . . _____________ ____ ______ _________ _________ . . . . . . _____________ _______
2 3 7 3 1 3 .3 6
Bank P re m ise s O w n e d ............................................................................................................................' . I I I . ' . ' . ' . ' . I l l
3|68o !oO
12 4 5 6 02
F u rn itu re and F ix t u r e s _____________________________________________________________________________ _
O v e r d r a f t s .............................................................................................................
' - ' .' .'.' .' .' .' .'.' .' .' .' .' .'.' .' .' .' .' .I
l'l3 9 .9 3

C a p it a l

S to c k

$ 5 ,8 4 8 ,1 8 0 .8 6
L I A B I L I T I E S
(C o m m o n )___________________________________________________________________________ 5
100 0 0 0 .0 0

n uT ,u-!.
-----U n d iv id e d P r o f i t s ........................................................
D ep ° s i t * ..........................................................................................: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :

1 5 0 ,0 0 0 .0 0
117
IRQ iq
s

. J s m I i :« ?

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

29 Y e a r s o f C o n tin u o u s S e r v ic e
O F F IC E R S
!;■• £• SORG President
E. E. EVERETT, Vice President

C. L. FIESTER. Vice President
P. E. SORG, Cashier

Member Federal Deposit Insurance Corporation

Federal Home Loan Bank of Des Moines
DES MOINES, IOW A
STATEM ENT

OF C O N D IT IO N , D E C E M B E R

R E S O U R C E S
Cash ........................................................... $
3 1 0 3 3 6 .8 2
Investm en ts:
U . S . G overn­
m ent O b li­
ge,tions .8 1 7 , 5 7 3 , 4 7 0 . 5 0
Consolidated
F H L B O b li­
gations .
1 ,2 7 5 ,1 4 6 .1 0
1 8 .8 4 8 .6 1 6 .6 0
A dvances O u t s t a n d i n g ..................... 2 3 ,5 2 5 ,1 6 9 .8 1
Accru ed In terest R e ce iv a b le . . . .
1 2 4 ,1 0 3 .9 7
7 ,1 1 2 .9 3
D eferred Charges .................................
O th er R eso urces
1 2 6 .5 0
F u rn it u re and E q u ip m en t
(C o st $ 9 ,9 9 2 .7 8 )
1 .0 0

$ 4 2 ,8 1 5 ,4 6 7 .6 3

31, 1949

L I A B I L I T I E S A N D
C A P I T A L
D eposits— M e m b e r s ........................ $ 9 ,2 3 0 ,0 9 9 .5 8
D eposits— O thers
...........................
2 ,0 0 0 .0 0
Accrued In terest P a y a b le ............
1 3 5 ,9 6 1 .6 5
D ivid end s Payable—
J a n u a ry 6 , 1 9 5 0 ........................
8 0 ,7 0 8 .9 4
‘ Co nsolid ated O b lig atio ns F H L
Banks
............................................. 1 8 ,5 0 0 ,0 0 0 .0 0
C a p ita l Stock S u b scrip tio n s
P aid In :
U . S . G ove rn­
m ent . . $ 3 , 2 9 8 ,7 0 0 .0 0
M ember In s t i­
tutio n s
9 ,7 4 2 ,4 0 0 .0 0
1 3 ,0 4 1 ,1 0 0 .0 0
S u rp lu s:
Reserves . . $ 1 ,7 0 4 ,2 0 0 .8 1
U ndivided
Profits
1 2 1 ,3 9 6 .6 5

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

P a rti ipation in $ 2 0 6 ,5 0 0 0 0 0 .0 0 Co nsolidated Fed eral Home Lo an B a n k O b lig atio ns issued by the
Home Lo a n B ank B eard and now outstanding, w hich are the jo in t and several obligations of all Federal
Home Lo an B a n k s.

Northwestern Banker, January,


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

I950

retired from the presidency in March
last year to become chairman of the
board. He was succeeded by Joe T.
Grant.
While president of the Live Stock
National Bank, he was also president
of the Norfolk National Bank, Norfolk,
Nebraska; president of the Sioux City
Cattle Loan Company, and Trustee in
Federal Bankruptcy on various reor­
ganizations of livestock and commer­
cial deals.
Mr. Sam held the office of president
of the Sioux City Clearing House Asso­
ciation at various times, and has been
active in Sioux City’s civic affairs.
He resides at the Warrior Hotel inSioux City with his wife, Ada.

Use New Stamp
Using the American Bankers Asso­
ciation commemorative postage stamp
which was put on sale at Saratoga
Springs, New York, on January 3rd,
the Continental Illinois National Bank
and Trust Company of Chicago made
a first-day mailing from Saratoga
Springs in special envelopes commem­
orating the 75th anniversary of the
association.
The envelopes were addressed to
5,000 bankers and corporation execu­
tives and contained the Continental
Illinois’ new schedule of availability
of funds on checks deposited with the
bank. A slip calling each recipient’s
attention to the envelope as a collec­
tor’s item accompanied the mailing.

Iow a N ew s

89

C ou n ty A sso c ia tio n O fficers 3 ic e t

BANKING CONFERENCE—The pictures above were taken
at the 1948' meeting of the Iowa Organization of Officers of
County Bankers Associations, held late last month in Des
Moines. Reading from left to right, those pictured are, left,
J. W. Edge, newly elected vice president of the organization,
and president of the Farmers Trust & Savings Bank, Spencer;
and L. L. Bless, new president of the organization, and cashier
of the Ventura State Bank. New secretary of the organization
is Ralph R. Hudachek, president of the Johnson County Bankers
Association, and cashier of the Lone Tree Savings Bank.
Center—V. W. Johnson, president, First National Bank, Cedar

Trade Ties
B. C. Gardner, president of the Bank
of Montreal, told shareholders at the
132nd annual meeting that the broad
Canadian trend seemed to be toward
a closer balance in trade with “our
nearest neighbour” and a contraction
of exports to “important and tradi­
tional overseas markets.”
In Canada price influences had
achieved “ something approaching a
balance of forces.” The most note­
worthy feature of the business trend
was its relative stability, compared
with developments in the United
States, the president stated. Offset­
ting recessive influences in large part,
“we have a vigorous program of in­
dustrial expansion.” Gaining self-con­
fidence and “ know-how” as an indus­
trial nation, “we are rediscovering our
own frontier” in natural resources.
Canada appeared to be undergoing
a dynamic growth not unlike that of
the LTnited States after World War I.
Turning to Canada’s dollar dilemma,
Mr. Gardner pointed out that, since
the devaluated rates of exchange had
been established by governmental fiat,
there could be no assurance that they
would accurately reflect comparative
costs and prices. He suggested “per­
mitting a range of variation in ext
change rates, cushioned perhaps by a
stabilization fund designed to prevent
violent short-term fluctuations.”
“ In 1939 we had about a million cur­
rent and savings accounts on our
books,” Mr. Ball recalled. “We now
have over 1,750.000 accounts.” Loan

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Federal Reserve Bank of St. Louis

Falls, and director from Iowa for the Federal Reserve Bank,
Chicago; Henry Visser, cashier, First National Bank, Hawarden; and J. F. Kennedy, president, First National Bank, New
Hampton, and president of the Iowa Bankers Association.
Right— J. H. Pullman, Jr., cashier, Fremont County Savings
Bank, Sidney; J. A. Nelson, cashier, Farmers State Bank, Luverne; Mark J. Orr, assistant cashier, Fremont County Savings
Bank; and Ralph Eastburn, president, Iowa State Bank & Trust
Company, Fairfield.
One or more representatives from 112 banks, from 80 counties
in Iowa, attended the conference. Total attendance was 177.

accounts had more than doubled in
number. All types of banking trans­
actions showed “commensurate in­
crease.” Personnel totaled 9,700, com-

O p en ed fo r

pared with 6,000 in 1939. The number
of shareholders had also doubled, “and
we are naturally glad to see this wider
share ownership in our institution.”

B u s in e s s O c t o b e r

15,

1934

Statement of the

IOWA STATE BANK & TRUST COMPANY
Iowa City, Iowa

December 31, 1949
RESOURCES
Cash and Due from Banks-------.------------------------------$2,630,798.84
U. S. Bonds______________________________________ 4,567,110.00
Other Bonds and Securities-----------------------------------121.266.78
CASH OR ITS EQUIVALENT__________________________________ $ 7,319,175.62
Loans and Discounts____________________________________________ 4,008,614.38
Overdrafts _____________________________________________________
301.88
Banking House _________________________________________________
50,000.00
32,790.14
Furniture and Fixtures----------------------------------------------------------------$11,410,882.02
LIABILITIES
Capital Stock ___________________________________________________
150,000.00
Surplus and Undivided Profits---------------------------------------------------229,508.49
Deposits _______________________________________________________ 11,031,373.53
$11,410,882.02
O F F IC E R S
Ja s . H . S c h m i d t , A ss’t Cashier
B e n S. S u m m e r w i l l , President
M il o N o v y , A ss’t Cashier
W . W . S u m m e r w il l , Vice President
B e x E . S u m m e r w i l l , Ass’ t Cashier
W . F. S c h m i d t , V ice President
O. D . B a r t h o l o w , Ass’t Cashier
M . B . G u t h r i e , V ice Pres. & Cashier
M. E . T a y l o r , Auditor

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Northwestern Banker, January,

1950

90

Iow a N e w s

i

'IntraIUroup

in

ll

CHRISTMAS CAROLS— Here is the Central National Choral Group of 32
voices, all members of the staff of the Central National Bank & Trust Company
of Des Moines. The Choral Group staged a special program of Christmas Carols
in the main banking room of the bank from 12:00 noon to 1:00 p. m. on December
22 and 23. The program was also broadcast over a local radio station.

Spring Council Meeting
The annual spring meeting of the
executive council of the American

D E P O S IT -B Y -M A IL
Simplified banking by mail.
Time-saving convenience for
custom ers...for you. Handle
in slack periods, reduce er­
rors. Deposit slip bears post
mark , . . exclusive patented
flap protects contents.

Bankers Association will be held at
the French Lick Springs Hotel, French
Lick, Indiana, April 23rd through
25th, it was announced this month by
F. Raymond Peterson, president of
the association. Mr. Peterson is chair­
man of the board, First National Bank
and Trust Company, Paterson, New
Jersey.
The executive council meets twice
each year, in April and during the
A.B.A. convention in the fall. It is
the governing body of the association,
second only to the general convention,
and consists of the officers of the
association, the president and vice
president of each of its six divisions
and sections, the chairman of the sev­
eral A.B.A. commissions, representa­
tives elected by the A.B.A. members
in the 48 states and the District of
Columbia, and twelve members-atlarge appointed by the association
president.
In addition to the meeting of the
executive council, several of the asso­
ciation’s committees, commissions and
councils will meet in French Lick at
the same time.

Three new directors were elected at
the January meeting of the board of
directors of the City National Bank &
Trust Company, Kansas City, Mis­
souri. They are:
Lawrence P. Engel, M.D., prominent
surgeon of the southwest; Howard
Flagg, past president and now direc­
tor and chairman of the finance com­
mittee of Employers Reinsurance

TfeNSioN Envelope Corp.
New York 14, N. Y.
Minneapolis 1, Minn.
St. touts 10, Mo.
Des Moines 14, Iowa
Kansas City 8, Mo,

Did you know that this company has specialized
in Bank Insurance since 1919— that it has the inside
view on Bank Insurance problems? Consult
us freely at any time.
N A T IO N A L

BANK

B U IL D IN G

Northwestern Banker, January,


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

1950

9nvsiAiijqjcdsi
Addressojraph
S r w iw fA ,

Addressing by hand or
typewriter method costs
10 times as much as the
m o d e rn Addressograph
method.

New Directors

In desired papers and colors.
Write for samples and prices.

F IR S T

Corporation, and Arthur L. Mullergren, consulting engineer, and chair­
man of the board, Western Light &
Telephone Company, and president of
the American Service Company.
Dr. Engel, in addition to his exten­
sive practice of surgery, is associate
professor of surgery at the University
of Kansas School of Medicine and clin­
ical professor of surgery at the Uni­
versity of Kansas City Dental College.
Howard Flagg is a well-known in­
surance executive with a legal back­
ground. He was engaged in the fire
insurance business for twelve years
and was president of Employers Re­
insurance Corporation from 1939 to
1943, being forced to retire because of
ill health. At present, he is director
and chairman of the Finance Commit­
tee of that company and is a director
of the Central West Utility Company
and of the Central Surety and Insur­
ance Corporation.
Arthur L. Mullergren is a wellknown consulting engineer in the
southwest.

•

C H IC A G O

OMAHA — DES MOINES
DAVENPORT

Scarborough & Company
Insurance Counselors
3, I L L I N O I S

STATE

2 432 5

to Banks

Io w a N e w s

Newly Organized
Fred Fadell, president, announced
appointment of a staff of 10 men and
women to the newly-organized adver­
tising and public relations firm of
Fred Faded & Associates, Inc., with
offices at 615 Minnesota Federal Build­
ing, Minneapolis, Minnesota.
The firm has engaged only in the
public relations business for the past
four months and entered the adver­
tising field as of January 1st.

Chemical Bank Report
In its statement of December 31st,
the Chemical Bank & Trust Company,
New York, reported deposits of $1,449,655,700, compared with $1,435,190,392
on December 31, 1948, and total assets
of $1,593,278,135, compared with $1,583,724,456 a year ago. Cash on hand
and due from banks amounted to $432,295,401, compared with $487,514,147; U.
S. government obligations to $598,546,438 against $415,567,186, and loans and
discounts to $436,846,232 against $560,799,246.
Capital stock and surplus were un­
changed at $25,000,000 and $75,000,000
respectively, and undivided profits of
$13,623,977, compared with $10,727,059
on December 31, 1948.
The indicated net earnings on the
basis of the bank’s capitalization of
2,500,000 shares (par $10) amounted
to $2.96 per share for 1949, as com­
pared with $2.83 for the preceding
year. The regular dividend of $1.80
per share was paid.

Guaranty Trust

The statement of the condition of
the Guaranty Trust Company of New
York as of December 31, 1949, shows
total capital funds of $370,568,482, as
compared with $366,890,333 a year ago.
The company’s capital and surplus re­
main unchanged at $100,000,000 and
$200,000,000, respectively, and undi­
vided profits are $70,568,482. Regular
dividends of $12,000,000 were paid dur­
ing 1949 and 1948, and an extra divi­
dend of $2,000,000 was declared in
1949, payable January 3, 1950.

the board of directors, was elected sec­
ond vice president.

Harris Trust and Savings
At a Harris Trust and Savings Bank,
Chicago, board of directors’ meeting,
immediately following t h e annual
stockholders’ meeting, Burton A. Brannen, formerly vice president and audi­
tor, was made vice president in charge
of the auditing department. Delbert
N. Urick, formerly assistant auditor,
was elected auditor and Edward L.
Moritz, formerly assistant auditor,
was elected assistant vice president.
The following were promoted in the
bond department of the bank:
In Chicago: Henry W. Michels, Jr.,
from assistant sales manager to man­
ager, trading department; Hiram R.
Bright, from assistant manager to
manager, municipal department, and
William S. Morrison, Jr., from assist­
ant sales manager to sales manager.
In the New York office: William
J. Dumper, from assistant manager

91

to manager, municipal department,
and Paul W. Wolf, from assistant sales
manager to sales manager.

Wage-Hour Handbook
Bankers looking for information
about and help in applying to their
institutions the 1949 amendments to
the Federal Wage-Hour Act and the
new regulations issued by the WageHour Administrator thereunder will
have their need filled when they re­
ceive from the American Bankers
Association its new “Wage-Hour Hand­
book for Banks,” setting forth the pro­
visions of these amendments and the
provisions of the regulations as they
apply to banks.
The Handbook is a 30 page study
prepared by the A.B.A. Customer and
Personnel R el a t i o n s Department,
which not only presents clearly the
provisions of the amended law, but
also the changes in the regulations
promulgated as late as December 24th
and not yet generally available to

CONDENSED STATEMENT

FIRST NATIONAL BANK
CEDAR FALLS, IOWA
December 31, 1949
R ESO U RCES
Cash and Due from B a n k s......... $ 957,838.84
United States G ov’ t Securities. 2,426,728.69
State and M unicipal B o n d s . . . .
320,093.87
Stock in the Federal Reserve
Bank ...................................................
5,000.00
Loans and D isc o u n ts.....................
595,367.02
O verdrafts
.............
224.63
Banking H ouse ..............................
18,500.00
Furniture and F ix tu re s................
5,999.44

L IA B IL IT IE S
Capital Stock ...................................
Surplus
.................................................
U ndivided Profits ...............................
Reserves
.........................................
D eposits
.........................................

100,000.00
70,000.00
73,902.12
7,197.84
4,078,652.53
$4,329,752.49

$4,329,752.49
V.

W.

O F F IC E R S
Johnson, P r e s i d e n t
W . E. Brown, V i c e P r e s i d e n t
J. B. N ew m an, V i c e P r e s i d e n t
H . C. M esserer, C a s h i e r
Elizabeth Iversen, A s s i s t a n t C a s h i e r
M em ber Federal Reserve System
M em ber Federal D eposit Insurance Corporation

NATIONAL BANK OF BURLINGTON
BURLINGTON, IOWA
Statement of Condition, December 31, 1949

Heads Board of Trade
Members of the Chicago Board of
Trade, at their recent annual election,
selected Carl E. Bostrom as their pres­
ident for 1950. Mr. Bostrom, vice pres­
ident of Lowell Hoit & Company,
served as first vice president during
the past year.
Sylvester J. Meyers, vice president
of Arcady Farms Milling Company,
was elected first vice president. He
had previously served as second vice
president.
Earle M. Combs, Jr., of E. M. Combs
& Son, previously a member of the
executive committee and a member of

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

ASSETS
Cash and Due from Banks---U. S. Government Securities.
State, County, and Municipal
Bonds ________________________
Other Bonds ............................
Loans and D iscounts.............
Overdrafts .................................
Stock in Federal Reserve Bank
Bank Building ..........................
Furniture and Fixtures.............
Other A s s e t s ......... - ................

LIABILITIES

$ 2,247,686.66
2,657,091.94
1,464,831.01
458,969.01
3,794,922.73
1,298.39
15,000.00
65,314.00
49,210.04
156.38

Capital Stock _________________

200,000.00
400,000.00

Undivided Profits ....................

139,682.81
56,642.25

Interest Collected but Not
25,003.36
Deposits ..................................... .

9,933,151.74

SI 0,754,480.16

$10,754,480.16
John H. Witte, Jr., President
Vincent P. Cullen, Executive Vice President

.$

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

Thomas L. Dyer, Cashier
F. J. Norton, R. K. Pearson, E. L. Hausknecht,
Asst. Cashiers.

Member F ed era l D eposit In su ra n ce Corporation

Northwestern Banker, January . 1950

92

Iowa News

banks in publications on the market.
In addition, it interprets the amend­
ments and the new regulations, and
draws extensively on the report of
Harry Weiss, director of the Wage-

SPECIALIZ1NG IN

AUTOMOBILE
FIRE
WINDSTORM

INSURANCE
CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
Mt. Pleasant, Iowa
E. A. HAYES
President

O. T. WILSON
Secretary

E s t a b lis h e d in 1929

MERCHANTS
M U T U A

L

BONDING
COMPANY
Incorporated 1933

.X

'

Home Office
SAVINGS & LOAN BUILDING

Des Moines, Iowa

•
This is Iowa’ s oldest surety company.

Hour Division of Wage Determina­
tions and Exemptions, resulting from
extended hearings held during the
past two years in order to help bank­
ers to understand the thinking be­
hind the regulations as now issued.
The 1949 amendments to the act rep­
resent the first overhaul of the law
since its passage in 1938. These
amendments and the revised regula­
tions will both take effect January
25th.

C O N V E N T IO N S

February 18-22, Mid-Year Meeting,
Financial Public Relations Associ­
ation, Buffalo, New York, Hotel
Statler.
February 22, Annual Meeting Group
Eleven Iowa Bankers Association,
Burlington, Hotel Burlington.
March 13-14, Annual Conference, Sav­
ings and Mortgage Division,
A.B.A., New York City, Hotel
Statler.
April 3-5, Reserve City Bankers, Boca
Raton, Florida. Boca Raton Club.
April 14-15, Annual Convention, Inde­
pendent Bankers Association, Des
Moines, Hotel Savery.
April 17-22, Group Meetings, Nebraska
Bankers Association, (towns to be
announced).
April 23-25, ABA Executive Council,
French Lick, Indiana, French Lick
Springs Hotel.
May 19-20, 1950, Annual Convention,
North Dakota Bankers Associ­
ation, Grand Forks, Dacotah
Hotel.
May 26-27, Annual Convention South
Dakota Bankers Association, Rap­
id City, Alex Johnson Hotel.
June 5, 6 and 7, 1950, Annual Conven­
tion, Illinois Bankers Association,
Chicago, Hotel Sherman.
June 7-8, Annual Convention Minne­
sota Bankers Association, Duluth,
Hotel Duluth.
June 11-16, 1950, 50th Anniversary
Convention American Institute of
Banking, Minneapolis.

We are proud of our two hundred and
fifty bank agents in Iowa.

September 18-21, Annual Meeting,
Financial Public Relations Asso­
ciation, Boston, Hotel Statler.

E. H. W ARNER
Secretary and Manager

W . W. W ARNER
Assistant Secretary

Nort hwest ern Banker, January, 1950


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

Directors of the Northern Trust
Company at their annual meeting pro­
moted four officers and elected six
new officers.
The promotions were: John A.
Adair, N. Flail Layman and David H.
Thomas, Jr., from assistant cashiers
to second vice presidents in the bank­
ing department, and James L. Porter,
from assistant secretary to second vice
president in the Trust Department.
New officers elected were: John B.
Rigler to assistant cashier, banking

January 23-25, Second National Credit
Conference, A.B.A.. Chicago, Ho­
tel Sherman.
January 23-26, 1950, Annual Midwin­
ter Meeting A. I. B. Executive
Council, Sea Islands, Georgia,
The Cloister.
February 13, Annual Meeting Group
One Iowa Bankers Association,
Sioux City, Hotel Martin.

A progressive company with experi­
enced, conservative management.

To be the exclusive representative of
this company is an asset to your bank.

N o rth e rn T ru s t

September 24-27, Diamond Anniver­
sary Convention. A.B.A., New
York City.
October 11-12, Annual Convention
Nebraska Bankers Association,
Omaha, Hotel Paxton.
October 22-25, 64th Annual Conven­
tion, Iowa Bankers, Association,
Des Moines.

IO W A •LITHOGRAPHING •COM PANY
FOUNDED BY CEORCE H. RAGSDALE •

•

EDWIN G. RAGSDALE « SECRETARY

315 TWENTY EIGHTH STREET

DES • M O IN E S

QUALITY - EX P E R IE N C E

•SERVICE

DES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION

Oldest in Des Moines
210 6th Ave.

Dial 2-8303

EL M E R E. M IL L E R
Pres, and Sec.
FOR

YOUR

H U B ER T E. JAM ES
A sst. Sec.

EN JO YM ENT

. . .

Listen to the
“ W ORLD

K R N T, 1350 KC

OF

M U S IC ”

1 to 1:30 p.m. Sundays

93

department; K e n n e t h Hoffmaster,
David W. Dangler and William B.
Cudahy to assistant secretaries in the
Trust Department, and Mat t he w
Beemsterboer and Ralph M. Smith to
assistant managers in the bond de­
partment.
All other officers of the bank were
reappointed.

E n velop e C om p a n y O p e n H o u se

Good Reason
May: Isn’t your husband wearing
a new suit?
Fay: No.
May: He looks different.
Fay: He’s a new husband.

INDEX OF
ADVERTISERS
JANUARY, 1950
A

Addressograph
SalesAgency....................
Allen Wales Adding Machine
Corporation
........................................
Allied Mutual CasualtyCompany...............
American National Bank and Trust
Company .......................................................
American Trust and Savings Bank—
Dubuque .......................................................

90
18
56
40
87

B
Bank of America ..........................................
Bank of Montreal..........................................
Bankers Service Company, Inc................
Bankers Trust Company— DesM oines..
Banks, William H., Warehouses, In c ...

37
45
86
79
45

MAKING ENVELOPES—Last month, just before the holidays, The Tension
Envelope Company, of Des Moines, held open house for its many customers, and
all others interested in the manufacture of envelopes, used for almost every con­
ceivable type of mailing. The group above is watching a machine which prints
the face of the envelope, ten at a time. From left to right those pictured are
Albert C. Berkowitz, president of the Des Moines Tension plant; Clark Ellis, sales
manager; John Adams, secretary of the Des Moines Chamber of Commerce; Fred
Atkins, vice president and cashier, and A. F. Erickson, assistant cashier, both of
Bankers Trust Company, Des Moines, and George Smith, Des Moines Railway
Company.
Tension Envelope Company also has plants in Kansas City, Minneapolis, St.
Louis and New York City.

c
California Bank .............................................
Central Hanover Bank and Trust
Company .......................................................
Central National Bank and Trust
Company .........................
Central States Mutual Insurance
Association ...................................................
Chase National B ank....................................
Chemical Bank and Trust C o m p a n y ....
City National Bank— Clinton...................
City National Bank and Trust
Company— Chicago ..................................
City National Bank and Trust
Company— Kansas City............................
Commerce Trust Company..........................
Continental Illinois National Bank and
Trust C om p an y ..........................................
Continental National Bank— Lincoln..

39

92
12
44
86

H

Halsey, Stuart and Company, Inc............ 50
Harris Trust and Savings B ank...............
9
Hawkeye Casualty Company................... 57
Home Federal Savings and Loan
Association ................................................... 52
Home Insurance Company.......................... 3

65
46
30
35
75

I)

I

Inter-State National B ank.........................
Iowa-Des Moines National B ank............
Iowa Lithographing Company.................
Iowa Mutual Insurance Company—
DeW itt ...........................................................
Iowa State Bank and Trust Company—
Iowa City .....................................................
Irving Trust Company..................................

73
96
92
57
89
6

K
Koch Brothers

............................................... 92

L

88
88

LaMonte, George, and Son.........................
Live Stock National Bank-—Chicago. . . .
Live Stock National Bank— O m a h a ....
Live Stock National Bank— Sioux
City ..................................................................
Long, R. C., and Company..........................

63
91
7
72
61
75
74
38
78
33

Manufacturers Trust Company...............
Marquette National B ank............................
Merchants Mutual Bonding Company. . .
Merchants National B ank............................
Minnesota Commercial Men’s
Association .................................................
Mississippi Valley Trust Company.........

F


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Federal Reserve Bank of St. Louis

Guaranty Trust Company............................ 36

4
16

Dain, J. M., and Company......................... 60
Dalton Press, Th e........................................ 84
Davenport Bank and TrustCompany.. 85
Davenport, F. E., and Company...........72, 87
Dayton and Gernon........................................ 53
De Luxe Check Printers, Inc..................... 42
Des Moines Building, Loan and Savings
Association ...........................
92
Drovers National B ank................................ 47

Farmers State Savings Bank—
Independence ...............................................
Federal Home Loan Bank ofDes Moines
First and American National Bank of
Duluth ...........................................................
First National Bank— Cedar F a lls...........
First National Bank— Chicago.................
First National Bank— Lincoln.................
First National Bank— Minneapolis.........
First National Bank— Omaha...................
First National Bank— St. Joseph.............
First National Bank— St. Louis...............
First National Bank— Sioux C ity.............
First Wisconsin NationalB ank.................

N

Gr

5
29
76
66
53

National Bank of Burlington...................
National Bank of Commerce...................
National Bank of South Dakota............. .
National City Bank of New Y o rk ..........
Northern Trust Company............................
Northwestern National B ank...................
Northwest Security National B ank........

91
73
67
95
11
58
68

O
Omaha National B ank.................................. 27

R

Recordak Corporation ......................... 48,
Remington Rand, Inc........................
Republic National Bank— D allas...........
Royal Bank of Canada............................10,

49
31
34
42

S

St. Paul Federal Savings and Loan
Association ...................................................
Scarborough and Company...........55, 77,
Securities Acceptance Corporation and
Subsidiaries .................................................
Security National Bank................................
Stock Yards National Bank— South St.
Paul ................................................................

64
90
54
82
62

T

Tension Envelope Corporation............... 90
Todd Company ............................................... 43
Toy National B ank........................................ 84

U
Union Bank and Trust Company—
Ottumwa ....................................................... 80
United States National B ank..................... 70
V

>1
8
83
92
2
64
41

Valley Bank and Trust Company........... 81
Valley National Bank of Phoenix........... 32

w
Walters, Charles'E., Company...................... 74
Western Mutual Insurance Company. . . 56
Wheelock and Cummins.............................. 53
Nort hwest ern Banker, January, 1950

94

In the

DIRECTOR’S
ROOM
Modern Day Financing

Selling Aid

Nice Try

A man can’t convince his lady love
She really is adored,
Till he buys her something she doesn’t
need
At a price he can’t afford.

An antique dealer made the mistake
of thinking a villager as simple as he
looked; so when he saw a cat lapping
milk from a china saucer of valuable
design, he was all for making a cheap
deal. After a little bargaining he
bought the cat for five dollars, and
then suggested that the animal would
settle down better in its new home if
he took along the saucer.
“No fear, mister,” was the reply,
“that’s the sixth cat I’ve sold with the
help of that saucer!”

He: Why does a woman say she’s
been shopping when she didn’t buy
a thing?
She: For the same reason a man
says he’s been fishing.

Really Works
An unsolicited testimonial from an
ardent golfer to a hosiery manufactur­
er: “ Fifteen minutes after putting on
a pair of your socks, I made a hole in
one.”

Sweet Remembrance
If you’d keep her happy
Hark to a sage;
Remember the birthday
But never the age.

Judge Knows His Cases
Officer: The charge against this
man, your honor, is stealing nine bot­
tles of beer.
Judge: Discharged. I can’t make a
case out of nine bottles.

A 1950 Thought
It takes courage to keep from talk­
ing about others when others around
you are talking; to stand up for an
absent person who is being abused; to
be somebody by holding fast to your
ideals when it causes you to be looked
upon as queer; to refuse to do a thing
that is wrong, though others do it—
but that is what makes you big.

Des Moines Blueprint

They Get Around

“Daddy, what’s a parking space?”
“Son, that’s a spot in which another
car is parked.”

The precocious brat, female, age
nine, had been giving her mother a
hard time. Finally, Mom, fed up with
the kid’s antics, turned to her and
said:
“ Susan, I’m tired of telling you to
behave; if you don’t, you’ll be pun­
ished. Do you know where bad girls
go?”
And Susan smiled brightly and an­
swered, “Yes’m. They go almost ev­
erywhere!”

Caught Again
Actor: I hear you and the leading
lady are on the outs.
Electrician: Yeah, it was one of
those quick-change scenes with the
stage all dark. She asked for “tights”
and I thought she said “lights.”

By All Means
Student: I hear you’ve just returned
from a trip abroad.
Instructor: Yes, it was grand. I
visited Paris and Rome, but the best
thing was the trip over. If you ever
go, don’t miss that.

Old Stuff, New Way
“You’ve been promoted?”
“Yep. Used to be a drop engineer
and now I’m a sandwich engineer.
The boss used to come around and
say ‘Drop whatever you’re doin’ and
do this.’ Now he says, ‘Sandwich this
in between whatever you’re doin’.’ ”
Northwestern Banker, January, 1950

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

just Take It Easy
Henry Ford, so the story goes, once
offered his prescription for achieving
longevity: “Don’t stand up if you can
sit down; don’t sit down if you can lie
down.”

Sound Alive
“What’s the best way to preserve
your wedding ring?”
“Dip it in dish-water three times
a day.”

No Bother at All
“ I’m not quite sure I understand
knee-action wheels.”
“Why, it’s like this—the wheels give,
so if you run over a pedestrian you
hardly feel it.”

The Odds Say

“

No”

Little Roger came home from Sun­
day School with a “mite box.”
“Why do they call it a mite box,
Mother?” he asked.
“Because,” chirped his brother, “You
might put something in it and you
might not.”

Nice Style
First Gal: You wrote a confession
story? Did it sell?
Second Gal: No, but the editor came
all the way from New York to see me.

Heavenly Dirt
First Cannibal: What’s that black
soot?
Second: That’s not soot, that’s holy
smoke. We’ve got a missionary for
supper.

Digest Version

What's the Difference?

Instructor: Bobby, why have you
only written a 10-line essay on “Milk”
when all the others have written sev­
eral pages?
Bobby: Maybe it’s because I wrote
about condensed milk, ma’am.

Office Boy: I et six eggs for break­
fast this morn’g.
Bookkeeper: You mean ate, don’t
you?
Office Boy: Well, maybe it was eight
I et.

Factory Personnel Manager: And
who should we notify in case of acci­
dent?
Applicant: Anybody in sight.

Give Him the Job

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

HELPING i W

GROW

By W o r k i n g T o g e t h e r wi t h
CO RRESPO N D EN T BANKS
Through this Bank, Iowa Banks and Bankers
can offer a customer service as complete
and useful as that available to business
firms and individuals in large cities.

Your Bank is invited to make the fullest
use of the experienced staff, modern fa­
cilities, adequate resources and favorable
connections of Iowa's Largest Bank.

Many banks use our loan facilities to help
meet the needs of customers who require
larger lines of credit than can be extended
locally. Fast collection of checks, drafts
and other items; transfer of funds; credit
information and other correspondent bank
services benefit Iowa banks and their
customers.

■ ■ I
Total Resources Over One Hundred Million Dollars

IOWA-DES MOINES NATIONAL BANK
Member Federal Deposit Insurance Corporation
mmmm

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Federal Reserve Bank of St. Louis

WÊÊKÊ