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JULY

1940

F. F. P H IL L IP P I
Cashier, D akota State Bank, M ilbank
President, South D akota Bankers A ssociation

W AR, POLITICS, GOLD, AND N ATIONAL DEFENSE


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Page 11

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J a m e s E. H a m i l t o n , Chairman
S. E. C o q u i l l e t t e , President
H . N . B o y s o n , Vice President
R o y C . F o l s o m , Vice President
M a r k J. M y e r s , V. Pres. & Cashier
G e o r g e F . M i l l e r , V. Pres. & Tr. Officer
M a r v i n R. S e l d e n , Vice President
F r e d W. S m i t h , Vice President
J o h n T. H a m i l t o n II, Vice President
R. W. M a n a t t , Asst. Cashier
L. W. B r o u l i k , Asst. Cashier
P e t e r B a i l e y , Asst. Cashier
R . D . B r o w n , Asst. Cashier
O. A. K e a r n e y , Asst. Cashier
S t a n l e y J. M o h r b a c h e r , Asst. Cashier
E. B. Z b a n e k , Building Manager

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o f f ic e r s

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

N orthw estern Banker, published m onthly by the D e Puy P u b lish in g Company, Inc., at 527 7th Street, D es M oines, Iowa
Subscription, 35c per copy, $3.00 per year. Entered as secon d -class m atter at the D es M oines post office. Copyright, 1940.


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Correspondent Banking
A

correspon den t relatio n sh ip

m e n ta lly on e o f service *
to e x c e l

in

b u sin ess

of our

through

h an d lin g

h a n k in g

frie n d ly

" IO W A 'S

e endeavor

the d a i l y

a co m b in ation

en cy and

is f u n d a ­

routine

frien d s

. . .

o f speed, e ffic i­

u n d e rsta n d in g . . .

FRIENDLY

BANK"

CENTRAL
NATIONAL
BANE
AND TRUST COMPANY
MEMBER


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Federal Reserve Bank of St. Louis

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

4

REASONS WHY BANKS PREFER
LA MONTE SAFETY PAPERS
PROTECTION
GOOD WILL VALUE

INDIVIDUALITY

R EC OG N I T I O N
P RE ST I GE
INDIVIDUALITY
ACCEPTANCE
WRITING SURFACE
P RI NT I NG SURF ACE
DURABILITY
UNIFORM QUALITY

W h e n y o u s e e this hat y o u k n o w that it rep­
resents U n cle S a m a n d the Spirit of A m erica
» » » W h e n b u s in e s s m e n s e e c h e c k s on La
M onte S a fety P ap er th ey k n o w th ose ch eck s
are protected a g a in st fraudulent m a n ip u la tio n
» » » La M onte's id en tify in g w a v y lin e s are u n ­
m ista k a b le e v id e n c e of S a fety a n d fine q u ality.

G E O R G E LA MONTE & SO N . NUTLEY. N. J.


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5

No. I V of a Series

M am M anu

PM ove

A MILLION DOLLARS TO INVEST?
If in d u stry , in its search fo r ad d itio n a l

T his is done by search in g o ut id le funds

c a p ita l, co u ld q u ic k ly an d easily co n tact

—m o b ilizin g th e m — and th e n in jectin g

in d iv id u a ls

to

th e m in to th e b lo o d stream of A m erican

invest— th e re w ould be no need fo r th e

in d u stry — en larg in g th e o p p o rtu n itie s of

In v estm en t B an k er.

service — developing new

w ith

a m illio n

do llars

p ro d u cts —

creatin g new jo b s— an d p ro v id in g in vest­
B u t th o se w ith a m illio n d o llars to invest

ors w ith a p ro fitab le re tu rn on th e ir,

are ex trem ely ra re .

p reviously u n p ro d u ctiv e, funds.

I n fact, m ost of o u r

g re a t A m erican in d u strie s are ow ned by
p eo p le w hose inv estm en ts are lim ite d to

In ad d itio n to its in v alu ab le service to

several th o u sa n d d o llars— an d in m any

A m erican in d u stry — In v estm en t B anking,

cases, c o n sid erab ly less.

likew ise, is an in d u stry in itself.

F o r it

provides ap p ro x im a te ly 92,000 d irect jobs
It is th e fu n c tio n

of th e

Inv estm en t

— and pays m illions of d o llars in taxes to

B an k er to p ro v id e in d u stry w ith a d d i­

th e F ed eral G overnm ent and to S tate and

tio n a l cap ita l.

Local G overnm ents.

Iowa Investment Bankers Association

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Federal Reserve Bank of St. Louis

<

6

PROTECTING

I N V I S I B L E

V A L U E S — NO.

14
r

HERE’S
MY I NS URANCE
STATEMENT

HE security of your loan is less, if your borrow er is not soundly protected. For
fire, w indstorm , explosion not only w reck physical properties but stop business
and earnings, thus endangering funds you have loaned.

T

T o guard against such loss, THE HOME provides forms of insurance to protect
invisible values— earnings, profits, commissions, rents— so often laid waste w ith
m aterial damage. W ritte n for your borrow ers, these coverages strengthen your
loans by strengthening values behind them.
U & O — Use & Occupancy insurance— is an exam ple of supplem entary cover­
age that broadens protection offered in the fire or w indstorm policy. Once at w ork,
it guarantees greater security by continuing b orrow er’s income after m ishap occurs.
The HOME agent near you w ill gladly discuss this vital form that covers firms
and institutions to whom you lend money. He will also describe other im portant
form s THE HOME w rites to protect invisible values.

™

F insurance
ilUlVllj COMPANY
tjam

NEW YORK

F I R E — AUTOMOBI LE — MARI NE

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Federal Reserve Bank of St. Louis

and

ALLI ED

LI NES

OF

INSURANCE

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J U L Y

19 4 0
FORTY-FIFTH Y E A R

NUM BER 636

Oldest Financial Journal West of the Mississippi River

IN THIS ISSUE
Editorials
A c ro s s th e D e sk f r o m t h e P u b l i s h e r ................................. .............................................................

8

C LIFFO RD DE PUy

Feature A rticles

Publisher

R A L P H W. M O O R H E A D
Associate Publisher

H EN R Y H. H A Y N E S
Editor

J. STUART D A V IS
Associate Editor

527 Seventh Street,
Des Moines, Iowa

F r o n tis p ie c e ..........................................................................................
W h a t A b o u t W a r , P o litic s , G old a n d N a tio n a l D e f e n s e ? ........... Hugh S. Johnson
T h e M in n e s o ta C o n v e n tio n ..................................
M in n e s o ta C o n v e n tio n P i c t u r e s ........................................................................................................
G o v e rn m e n t C o m p e titio n a n d H o w to M e e t I t ............................................. J. P. Malloy
N e w s a n d V ie w s ......................................................................................................Clifford De Puy
W h y W e H a v e B oom s a n d D e p r e s s io n s ....................................................... W. G. Kahlert
N o r th w e s t In c o m e A p p ro a c h e s T w o B illio n .............................................................................
L e g a l Q u e s tio n s a n d A n s w e r s .............................
O u r C a lf C lu b B u ild s G o o d w ill........................................................................... W. C. Currell

10
11
12
13
14
15
16
18
20
21

Bond s and Investments
T h e M o n th ’s M a r k e t M a n e u v e r s .............................................................. James H. Clarke 25
I n v e s tm e n t B a n k e r s P l a n P u b lic I n f o r m a t io n P r o g r a m - .................................................. 28
31
N e b r a s k a I n v e s tm e n t B a n k in g N e w s ................................ ...................................................... .

Telephone 4-8163

State Banking News

NEW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth Ave.

Suite 1202

Telephone MUrray Hill 2-0326

N e b r a s k a N e w s ................................................................................................................
O m a h a C le a rin g s .........................................................................................................................
L in c o ln L o c a ls .................................................................................................................................
S o u th D a k o ta N e w s ................................................................................................................................
M in n e s o ta N e w s ...............................................................................................
T w in C ity N e w s ...........................................................................................................................
N o r th D a k o ta N e w s ........ .......................................................................................................................
M o n ta n a N e w s .............................................................................................................
Io w a N e w s ....................
N e w s F r o m D e s M o in e s...................

35
37
39
41
43
45
47
48
49
52

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

Savings and Loan
A s O th e r s S ee U s .................................................................................................. W. H. Husband 63
T r i - S t a t e M e e tin g in M in n e a p o lis ........................................... ................... J. S tuart Davis 63

The Directors* Room
A F e w S h o r t S to r ie s to M a k e Y o u L a u g h

70
M EM BER
Audit Bureau of Circulations
Financial Advertisers Association


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There are some people in
this country who favor the
Com munists and w hat they
are doing. They are helping
and assisting them in th eir fifth column activities
which have no other u ltim ate purpose th an the
underm ining, if not the complete overthrow , of
our form of governm ent.
N ot long ago th ere appeared full page adver­
tisem ents th ro u g h o u t the nation en titled “ Stop
Hitler Now.” These advertisem ents w ere p u b ­
lished by the “ Committee to Defend America by
Aiding the Allies,” the national chairm an of
w hich is W illiam Allen W hite, editor of the E m ­
poria, K ansas Gazette.
The advertisem ent was w ritten by R obert
Em m et Sherwood, B roadw ay play rig h t, who is
au th o r of “ Abe Lincoln in Illin o is” , and is a
form er W orld W ar veteran.
In the advertisem ent was this s ta te m e n t:

W hy Should
W e Favor
Communists?

“ The fifth column is led in this as in other
countries by Nazis ahd Communists and their
fellow travelers who are well trained in the dis­
semination of poisonous propaganda. Their ob­
ject is to destroy national unity, to keep the
United States in a state of confusion over all
world issues so that we will be weak and helpless
when our time comes. All Americans should be­
ware the prevailing Nazi-Communist propaganda
which attempts to capitalize our desire for peace
by opposing all our moves toward national defense
—sabotaging all aid to the Allies—preaching that
Hitler has already won and we must meekly
appease him. ’ ’
P ersonally we have no use fo r the Communists
or the Nazis or w hat they stan d for, and while
we believe fully in free speech and a free press,
we do not believe th a t any group or any organi­
zation in the U nited S tates has the rig h t to take
ad vantage of our liberties and our freedom by


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try in g to underm ine these very fundam entals
of our nation.
W ith nation a fte r nation having been over­
throw n by Com munist and F ifth Columnists, even
before the H itle r B litzkrieg entered those coun­
tries, we say th a t it is high tim e the U nited S tates
began to carefully, system atically, b u t very effec­
tively elim inate these off-color political p arasites
and H itler term ites from our public life— and do
it before it is too late.

Unemployment
For some time
Must Be Solved
now we have «one
By' Work— Not Money' only
on, the
Cl
m the United
S tates b u t in other countries, th a t the answ er to
the unem ploym ent problem was sim ply to p u t the
unem ployed on a dole, or give them a m onthly
check from the governm ent treasu ry .
Most men really w an t to w ork, if they can get
a job, and basically, the governm ents which have
p u t the em phasis on fu rn ish in g the money ra th e r
th an furnishing the w ork, have m ade a grave
m istake.
F re d I. K ent, director of the B ankers T ru st
Com pany of New Y ork City, in speaking before
the A m erican In stitu te of B anking a t th e ir con­
vention in Boston recently, com m ented on this
subject w hen he said:
“ The U nited S tates trie d to cross the m orass
of unem ploym ent th a t followed a breakin g of the
w orld bubble by p ay in g m en fo r doing nothing,
exactly as the E uropean countries h ad done, in ­
stead of building a solid foundation upon which
to pass over as could have been accom plished
so easily.
“ Then followed, alm ost th ro u g h o u t the world,
the developm ent of a trem endous pro paganda
th a t was carried by public speeches, w ritings
and over the radio so broadly th a t it undoubtedly

reached every individual in every civilized coun­
try. This pro p ag an d a was of a m ost vicious ch ar­
acter. I t inflam ed the desires of men and women
to obtain som ething for nothing and to wish fo r
the destruction of the powers of those who m ake
em ploym ent by tak in g from them the w ealth
w hich they needed in order to fu rth e r the p ro ­
duction req u ired by the people fo r th e ir very
existence.
This pro p ag an d a underm ined the
b e tte r ju d g m en t of the m ultitudes.
I t was
founded on the false idea th a t money, and not
w ork, would provide the production th a t the
people m ust have.
“ So-called social security has been dem anded
th ro u g h a system u n d er w hich those who w ork
created the production th a t those who do not
w ork are to consume. Such m ethods, when the
percentage of non-w orkers to w orkers is carried
beyond the norm al point th a t provides for those
who are unable to w ork, instead of leading to
social security are certain to destroy a peoples’
ab ility to m aintain social security on any basis.”
W hile em ploym ent is increasing now because
of the m an u factu rin g of w ar equipm ent and a
general u p tre n d in business, w hen the w ar is over
and the unem ploym ent problem again faces us, it
m ust be solved by giving every help possible to
in d u stry so th a t em ploym ent m ay be increased
and governm ent doles decreased.
The banks of the
U nited
S tates
will
play a very im p o rtan t
p a rt in the coming
m onths as our national defense program gets
u n d er way.
B ankers m ust be p rep ared for changing condi­
tions and a d ju st them selves accordingly. A drian
M. Massie, vice president of New Y ork T rust
Company, in discussing a program for banks u n ­
der present conditions, gave the follow ing 6 sug­
gestions, w hich he believes every bank should fol­
low :

Bankers Must
Protect Capitalistic
System

“ 1. A bank has only a lim ited am ount of capital
funds. These m ust be safeguarded w ith the
utm ost precaution. W ith o u t them there can
be no bank.
“ 2. If the arm am ent program should by any
chance raise values of securities, we m ust not
lose too much tim e in elim inating unsound
ban k ing assets.
“ 3. In g ra n tin g new loans we m ust be thorough
in the exam ination of credits and see th a t
even u n d er adverse conditions sound value is
represented.


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“ 4. If a rising price level fo r commodities or se­
curities should occur, we m ust not depend
on these levels, being m aintained a fte r the
w a r has been term inated.
“ 5. If, in this period, earnings should im prove or
profits be taken, we m ust use all we can for
reserves to husband against fu tu re losses. W e
should not be tem pted to p ay too m uch in
dividends.
“ 6. Be conservative, be thorough, but, above all,
be courageous.
B anking is one of the m ost im p o rtan t key­
stones in the capitalistic system, and the cap ital­
istic system is on trial. I t m ust not fail and it will
n o t fail if every banker does a sound job.
W e are convinced th a t the bankers of Am erica
will do th eir job in this em ergency, as they have
in every other, and th a t both the ban k in g system
and the capitalistic system will em erge success­
fu lly a fte r the W orld W a r No. 2 has ended.
In the m eantim e, let bankers use every influence
they have to prevent the governm ent control of,
or the ta k in g over com pletely, of the A m erican
banking system.

The Republican
In a year when two sreat
Money Plank
political p arties are defining
7
th eir plans and th eir p la t­
form s it is well to exam ine w hat they are saying
and doing in connection w ith money, finance and
banking.
W e do not need to w ait for the D em ocratic
national convention to know w hat th e ir attitu d e
tow ards m oney and banking is, because th eir
seven y e a rs ’ record speaks more plain ly th a n
words.
The R epublican convention, w hich m et recently
in P hiladelphia, had one p lank on money which
reads as follow s: “ The congress should reclaim

its constitutional powers over money, and with­
draw the president’s arbitrary authority to ma­
nipulate the currency, establish bi-metallism, is­
sue irredeemable paper money, and debase the
gold and silver coinage.
“ We shall repeal the Thomas inflation amend­
ment of 1933 and the (foreign) silver purchase
act of 1934, and take all possible steps to preserve
the value of the government’s huge holdings of
gold and reintroduce gold into circulation.”
If, therefore, the R epublican p a rty is re tu rn ed
to pow er w ith W endell L. W illkie as P resid en t of
the U nited S tates, we know th a t the above points
in the R epublican p latform as they relate to
m oney and finance will be carried out.


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11

"Drunken Sailor Spendthrifts"
“If any m an. alm ost any man who is not a fo u rth N ew D ealer is elected president, he w ou ldn't
stand for this crew and th ey w ou ld know it. W e w ou ldn't even have to w ait for inauguration.
Im m ediately after election there w ou ld he the greatest exodus from W ashington of cake-fringed
radicals, theoretical experim entors, business baiting sour pusses, drunken sailor spen dth rifts,
in tellectu al zanies and econom ic pansies since th e P ied P ip e r tootled the rats out of H am lin.
T hat and that alone is the p rin cipal need for our defense, bu t we need that as desperately
as any n eed this country has known. L et us p ra y to G od in this crisis to deliver us from the
fou rth N ew D eal.”

W H A T A B O U T W A R , P O L IT IC S , G O L D
A N D N A T IO N A L D EFEN SE?
By G EN ERA L HUGH S. JOHNSON
Is Our Gold Worth More Than
Fillings For Teeth?
You’re a b u n ch of b an k ers so I am
going to s ta rt talk in g ab o u t S ecretary
of the T re a su ry H e n ry M orgenthau.
He h in ted th e o th er day th a t in certain
possible outcom es of th is w a r th a t all
th a t gold dow n in K en tu ck y m ig h t be
w o rth n o th in g m ore th a n fillings for
teeth. On th e daily crash of republics,
and kingdom s, and em pires some
panic is to be expected, even as far
aw ay as are we. W e h e a r in W ash in g ­
ton, th a t all tra d e w ill be by b a rte r
betw een nations. All our foreign m a r­
k ets are going to be w iped out; Jap an
is going to seize th e E a s t Indies and cut
us off from ru b b e r and tin; H itle r w ill
soon have South A m erica and th e n
th re a te n b litzk rieg here; it is feared,
also, th a t we have so increased our
debt th a t unless we assum e cru sh in g
ta x b u rd en s for defense, w e sh all be
ru in e d by an un co n tro lled inflation.
Now, th a t’s th e k in d of stuff th a t we
are beginning to h e a r from o u r lead­
ing politicians, jo u rn a lists an d even
colum nists. I don’t know any g re a te r
b re a th b eatin g panaceas th a n m y dear
frien d D orothy T hom pson w ho w an ts
us to m arch tom orrow . A ny m an
w ould be a fool and blin d to m inim ize
th e te rrib le blow s to civilization th a t
are being d elivered in E urope, or to
sh u sh by so m uch as one raised finger
th e inexcusable delay and efficiency
of th is a d m in istra tio n in o u r ow n de­
fense. B u t to go from th a t to th ese
p anicky extrem es is doing our Coun­
tr y n o t one p article of good. I t is
like th e m an w ho aw oke to find his
n eig h b o r’s house on fire an d so th re w
his ow n baby out th e th ird sto ry w in ­
dow and carried dow n sta irs a feath er
bed belonging to h is m other-in-law .

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S o m e o f th e h ig h lig h ts o f G eneral
J o h n so n ’s rem a rks before th e M in n e ­
sota B a n kers C o n ven tio n in clu d ed :
1. “Is o u r gold w o rth m ore th an
fillings fo r te e th ? ”
2. “ G old first m e n tio n ed in G enesis.’
3. “ Silver policy crooked lu n acy .”
4. “ O ur stake in C h in a.”
5. “ T h e U n ited States h a sn ’t a frie n d
on e a rth .”
6. “ Bluffing w ith a w ater p isto l.”
7. “ T h ird T erm an in su lt.”
8. “D efense w ill cost 30 B illion D ol­
lars m o re .”
9. “W ar em ergency used for p o li­
tics.”
10. “U nited States only n a tio n w o rth
p lu n d e rin g .”
11. “ H itle r and R oosevelt in pow er 7
y ears.”
12. “W e have n o t sought p eace.”
13. “ H ave two o r thi'ee years to p re ­
p a re .”
F irs t th is panic talk th a t gold m ay
be no good. If th a t is so I don’t know
w hy every natio n on e a rth is scram ­
bling to get as m uch of it as th ey can,
or to save as m uch of it as th ey can
from H itler by sending it over here.

Gold Fuss Mentioned in Genesis
Gold is first m entioned as som ething
all m en desire in th e fo u rth ch ap ter
of Genesis, of a tim e 6,000 years ago.
L ong before th a t tim e and certainly
ever since it has been by far th e best
m easure of w ealth and th e b est m edi­
um of trade. W hy? Sim ply because
it happens to be som ething th a t h u ­
m an ity know s th a t m en everyw here
w ill w illingly accept in exchange for
th e ir goods and services.
A frican
savages w ill take it for th e ir ivory no
less w illingly th a n A rctic Eskim os

w ill take it for th e ir peltries. It has
been found to be ju s t as tru e in
h ith e rto undiscovered trib es cut off
from th e re st of m an k in d for th o u ­
sands of y ears as we know it to be
tru e in every p a rt of th e w orld today.
It is of course obvious th a t w e have
foolishly unbalanced th e g reat stream s
and static pools of th e w orld’s gold
by grabbing too m uch of it, and th a t
some a d ju stm en t m u st be m ade before
the real life blood of civilization,
w hich is in tern atio n al trade, can flow
again. B ut to say, as Mr. M orgenthau,
the g reatest S ecretary of th e T reasu ry
since W illie W oodin, said the o th er
day, th a t th ere is any danger of our
g reat golden tre a su re becom ing w o rth ­
less is ju s t to cry “ro tte n fish” for sale
in respect of th e v ery foundation and
basis of th e credit of th e U nited States;
and to say th a t falsely, th a t poor, in ­
com petent “y e sse r” should be gotten
out of th a t v ital defense post in th is
dangerous h o u r before you could say
Tom Dewey, and sent so far th a t it
w ould cost seven dollars to send him
a postal card if anybody felt like
w ritin g to him. Of course we have too
m uch gold, and y et I w ould ra th e r
have too m uch th a n too little. If only
it has been w ith h eld from H itler, it
has hin d ered him , and it is a great
potential elem ent of our economic and
defensive stren g th . No n atio n w an ts
to trad e by b a rte r if it can trad e w ith
m oney and w ith credit, and none does
it at all by b a rte r u n til it has ru n out
of a gold basis for its cu rrency.”

Silver Policy Crooked Lunacy
“T he N ew Deal silver p u rcasing
policy w as sheer, crooked lunacy; th e
gold p u rchasing policy w as carried to
(T u rn to page 26, please)

12

The

Minnesota Convention

K. O , Sattre, Blue Earth, Named President. Other Officers Are O . G .
Jones, Red Wing, Vice President, and E. B. Hanson, Fertile, Treasurer.
William Duncan, Jr., Continues as Secretary of Association
TA TE b an k in g problem s sh ared
th e sp o tlig h t w ith natio n al de­
fense problem s a t th e fifty-first
an n u al convention of th e M innesota
B ank ers A ssociation in M inneapolis
Ju n e 5 to 7, atten d ed by som e 1,720
ban k officials.
In fact, defense m a tte rs alm ost took
precedence, for tw o out of th e five
scheduled speeches cen tered on th is
subject, and th e o th er th re e touched
on it m ore th a n casually.
Follow ing th e u su al opening d ay ’s
golf to u rn a m e n t an d pre-convention
sm oker, th e p ro g ram p ro p er got u n d e r
w ay Ju n e 6 w ith th e a n n u al re p o rt of
re tirin g P re sid e n t A. B. L ath ro p , vice
president, F irs t N ational B ank, St.
Paul.
R obert M. H anes, p resid en t of th e
A m erican B an k ers A ssociation, th e n
gave one of th e featu red talks. He
praised th e o u tstan d in g w o rk of th e
MBA, lit into S ecretary of A gricu ltu re
W allace for th e la tte r’s a tta c k on th e
ABA and its opposition to th e JonesW heeler bill, u rg ed continued an d ex­
panded education program s, and m ade
num ero u s observations concerning
w ar and o u r defense.

S

A T THE

On th e defense m atter, he pledged
b a n k e rs’ co-operation to P resid en t
R oosevelt’s program , b u t w arned
ag ain st w ar hysteria; predicted th a t
w hoever w ins th e w ar, th e w orld w ill
be a changed sphere, economically,
financially an d politically; and urged
b an k ers to “im prove our p a rt of th e
econom ic stru c tu re and look ahead to
gear th e b an king stru c tu re to th e
dem ands th a t m ay be m ade upon it.”
D onald D. Davis, p resid en t of Gen­
eral Mills, Inc., spoke on th e necessity
for an expanded, in tellig en t public re ­
lations program by b an k ers and all
o th er form s of business, and u rged th e
necessity for thoughtful, in telligent
and thorough-going research on all
problem s.
Prof. Jo h n D. A kerm an, head of the
U n iv ersity of M innesota aeronautical
en g in eering d ep artm ent, w arn ed th a t
an y p rogram for expanded a ir de­
fense m u st also include provision for
adequate pilot and m echanic perso n ­
nel. A nd he stressed th e im portance
of a “young m a n ’s” attitu d e tow ard
aviation developm ent.
G eneral H ugh S. Johnson, principal
sp eak er at th e an n u al banquet, slashed

M IN N E S O T A

T he p ic tu re s on th e o p p o site p a g e w ere ta k e n a t th e re c e n t
a n n u a l c o n v e n tio n o f th e M in n e so ta B a n k e rs A sso c ia tio n in
M in n e ap o lis. A ll c itie s n a m e d a re in M in n e so ta u n less o th e r
S ta te is in d ic a te d . R e a d in g fro m le f t to rig h t, th o se p ic tu re d
a re, 1— K . P. Doffing, e x e c u tiv e v ice p re s id e n t S c a n la n -H a b b e rs ta d B a n k & T ru s t C om pany, L a n e sb o ro ; H. B. R athbun, H a rris
U p h a m & C om pany, M in n e a p o lis; a n d A . E. Robson, p re s id e n t
F i r s t N a tio n a l B a n k , W a te rv ille . 2.— Jack M aloney, a s s is ta n t
c a sh ie r F i r s t N a tio n a l B a n k , M in n e a p o lis; a n d George J. K lasen,
p re s id e n t R o y a lto n S ta te B a n k . 3— C. F. D ab elstein , p re s id e n t
O lm stea d C o u n ty B a n k & T ru s t C om pany, R o c h e s te r; O. A.
Olson, p re s id e n t F i r s t N a tio n a l B a n k , B ra h a m ; a n d Oscar A.
Olson, vice p re s id e n t U n io n N a tio n a l B a n k , R o c h este r. 4—
W illiam M iller, v ice p re s id e n t C ity N a tio n a l B a n k , C hicago;
P lin B eebe, p re s id e n t U n io n N a tio n a l B a n k , Ip sw ic h , S o u th
D a k o ta ; D. E. Crowley, a s s is ta n t c a s h ie r N o rth w e s te rn N a tio n a l
B a n k , M in n e a p o lis; H a rv ey Salmon, C om m ercial C re d it Com­
p a n y , C hicago; Joe K n igh t, C o n tin e n ta l Illin o is N a tio n a l, C hi­
c ag o ; a n d K . M. M orrison, c o m p tro lle r F i r s t N a tio n a l B a n k ,
M in n e ap o lis. 5— J erry Thorp, v ice p re s id e n t F i r s t a n d L u m ­
b e rm a n s N a tio n a l B a n k , C h ip p ew a F a lls, W isco n sin ; a n d C. B.
Brom bach, a s s is ta n t v ice p re s id e n t F i r s t N a tio n a l, M in n eap o lis.
6— Mrs. P. L. Saw yer, A n n a n d a le ; Mrs. R. Sather, A n n a n d a le ;
Mrs. Colin M cDonald, A n n a n d a le ; a n d Mrs. M. L. Lundsten,
B uffalo. 7— Charles R ieger, m a n a g e r bo n d d e p a rtm e n t J a m is o n
& C om pany, M in n e a p o lis; Geo. J. M einz, c a sh ie r A m e ric a n N a ­
tio n a l, S t. C loud; F. F. S efcik , vice p re s id e n t a n d c a s h ie r S e ­
c u rity N a tio n a l, H o p k in s; a n d W. A. Zastrow, v ice p re s id e n t
F i r s t N a tio n a l, H o p k in s. 8— V. D. K oons, p re s id e n t F i r s t S ta te


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Federal Reserve Bank of St. Louis

w ith satiric vigor at New Deal policies
on economic m atters, finance, foreign
relatio n s and defense. H ighlights of
his talk ap p ear on an o th e r page of
th is issue.
A t th e final session Ju n e 7, speaker
w as W. S. E lliott, Canton, Ga., p resi­
den t of th e state b an k division of the
ABA. H e stressed th e necessity of
re tain in g state banks in our financial
system and suggested steps be tak en
by th e N ational A ssociation of S uper­
visors of S tate B anks to in su re m ore
adequate state supervision of such
banks.
Officers of th e MBA elected for the
com ing y ear w ere K. O. S attre, Blue
E a rth , president; O. G. Jones, Red
W ing, vice president, an d E lm er B.
H anson, F ertile, re-elected treasu rer.
W illiam D uncan, Jr., continues as sec­
retary .
Am ong resolutions adopted a t th e
m eeting w ere th e following:
RESOLVED: T h at th e A ssociation
express its appreciation first, to the
M inneapolis C learinghouse A ssociation
for th e ir su p p o rt in th is Convention.
Also, to th e convention com m ittees
(T u rn to page 30, please)

C O N V E N T IO N
B a n k , B r itt, Io w a ; a n d Jerry Nordberg, E . IT. R o llin s & Com ­
p a n y , M in n eap o lis. 9— Earl Loose, F re d L . G ra y C om pany,
M in n e a p o lis; an d M. E. K alton , S e c u rity S ta te , W ells. 10—
E. St. Claire Snyder, F re d L. G ra y C om pany, M in n e a p o lis; a n d
J. O. Bondhus, p re s id e n t F i r s t N a tio n a l, H e ro n L ak e . 11— J. A.
Oace, v ice p re s id e n t F i r s t N a tio n a l, S t. P a u l; F rank P. Powers,
p re s id e n t K a n a b e c S ta te B a n k , M o ra ; John C. Carlson, p re s id e n t
S ta te B a n k o f R ush C ity ; a n d L. H. Sedlacek, c h ie f n a tio n a l
b a n k e x am in er, M in n e ap o lis. 12— A. P. R ischm iller, c a sh ie r
S ta te B a n k o f G ib b o n ; A. W. H oese, p re s id e n t S e c u rity S ta te ,
G lencoe; a n d W . F. Borchret, c a s h ie r F i r s t N a tio n a l, M a p leto n .
13— N . M. E venson, p re s id e n t F i r s t N a tio n a l, O sak is; E. A.
Gandrud, p re s id e n t P o p e C o u n ty S ta te , G lenw ood; J. E. Odegaed, p re s id e n t S a n tia g o S ta te B a n k ; a n d Wm. F. K im ze, vice
p re s id e n t M a rq u e tte N a tio n a l, M in n e ap o lis. 14— J . A . C avitzel,
a s s is ta n t c ash ie r, an d A. V. Gardner, field re p re s e n ta tiv e , b o th
fro m A m e ric a n N a tio n a l, St. P a u l. 15— E. N. V an H om e, e x ­
e c u tiv e vice p re s id e n t A m e ric a n N a tio n a l, C hicago; a n d W . E.
Brockm an, vice p re s id e n t M id la n d N a tio n a l, M in n e ap o lis. 16—
J. T. P eterson, p re s id e n t; L. E. F elton, v ice p re s id e n t; a n d
W. F. D ietrich a n d George Scott, d ire c to rs , a ll of th e S ta te B a n k
of L e S ueur. 17— D eF orrest W ard, d ire c to r M a rtin C o u n ty N a ­
tio n a l, F a irm o n t; Gordon E. L arkin, v ice p re s id e n t M a rq u e tte
N a tio n a l, M in n e a p o lis; a n d M iles M cN ally, p re s id e n t B a n k of
N ew R ichm ond, W isco n sin . 18— S. G. Gandrud, a tto r n e y N o r th ­
w e ste rn N a tio n a l, L itc h fie ld ; H. Shirley, a s s is ta n t c a sh ie r F ir s t
N a tio n a l, B re c k e n rid g e ; W. S. M cGee, p re s id e n t N o rth w e s te rn
N a tio n a l, L itc h fie ld ; a n d A1 Junge, J . S. B a u m a n & C om pany,
M in n eap o lis.


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Federal Reserve Bank of St. Louis

14

Government Competition and
How W e Can
|T SEEM S th a t about ev ery so often
I th e in tric a te m ach in ery w hich con' trols business, in d u stry an d th e leg­
islative pow ers gets com pletely out of
order. In th e p a st 102 y ears in b u si­
ness we have had tw enty-four of these
periods. In th a t tim e we have h ad tw o
m ajor periods of deflation lasting th ir ­
teen y ears each. W e have h ad ap p ro x ­
im ately forty-four y ears of p ro sp erity
and forty-four y ears of depression,
w ith about fo u rteen y ears of w h a t
m ight be considered average tim es.
T hus let us say th a t we have h ad in
th e past 102 years, fifty-eight y ears of
good tim es and forty-four y ears of de­
pressing tim es. A t th e R epublican
convention held in Chicago in 1880,
Jam es A. Garfield w as n o m inated on
the th irty -six th ballot and elected to
th e presidency in th e fall of th e sam e
year. He w as preceded in office by
four R epublican p residents, w ho had
served a to tal of tw e n ty years, an d fol­
lowed by a R epublican p resid en t w ho
served four years. N evertheless, th e
w ords tak en from th a t g re a t m a rty r
shows, quote: “The g re a t w a n t of
business is a stable policy and it is a
significant com m ent on th e ch aracter
of our legislation th a t Congress has
becom e th e te rro r to th e business m en
of th is co u n try .”
So it w as again in th e sp rin g of 1933,
w hen for several days th e financial
stru c tu re of th is g re a t U nited States
of A m erica w as in a state of com a and
collapse. B an k ers g re a t and sm all
pleaded w ith th e P re sid e n t for g overn­
m ental assistance. T hro u g h his efforts
he gave back to th e b an k er his b ank
and instilled into th e depositor a lost
tru s t u n til today th e b an k s again have
an over abundance of deposits.
W hile these facts w ere being w rit­
ten into th e an n als of h istory, m any
o ther th in g s w ere happening. W e of
th e b an k in g profession w ere too busy
w ith our p ersonal item s to consolidate
our gains. T h erefore w hile we w ere
being bolstered as a depository we
paid for th is privilege b y th e sacrifice
of ou r earning. Out of th is financial
in u n d atio n arose c ertain g o vernm ental
agencies and alphabetical provocators.
T hey w ere for our good it w as said,
b u t w e w ere n o t am ong th e auth o rs.
In prin cip al p erh aps th e y m ean t w ell
and if th e b an k ers had been p re se n t to
act as th e enzym e and control th e ac
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Federal Reserve Bank of St. Louis

M 66t

By J . P. Malloy
C ash ie r
C astalia Savings Bank
Castalia, Iowa

"It is time that bankers either
take the time to do their part
actively in the business of
running the government, or
find men capable of handling
such offices, and elect them."
tion th ey w ould not have tak en from
us our earning. We now have in com ­
petition w ith us thousands of new p ri­
vate and corporate lending agencies,
to g eth er w ith th e FLB, FHA, HOLC,
CCC, RACC, RFC and m any o th er gov­
ern m e n tal agencies. It is a problem in
th is co u n try y et to be solved as to how
a system of regulation and cooperation
can be w orked out betw een th e gov­
e rn m e n t and banks. T herefore, p artly
due to th e lack of desire on th e p a rt of
th e b a n k ers to become m em bers of
those legislative bodies w hich direct
our activities and m ake our law s we
have lost a g re a te r p a rt of our earn in g
capacity. To regain these lost e a rn ­
ings we m u st assum e our political re ­
sponsibilities and p u t ourselves into a
position to assist in th e directions of
our fortunes.
In th e case of the F ed eral L and
B ank loans. Is it n ot possible for th e
local b ank to m ake th e farm loan if it
is backed by th e sam e degree of liquid­
ity th a t th e F ed eral farm m ortgage
bonds enjoy? Is not th e local b an k in
a b e tte r position to judge th e value of
th e land, know th e qualifications and
p ast p aym ent record of th e borrow er
and service the loan? T herefore if th e
local b an k w ere to hold th e cash now
paid for land b ank stock, receive th e
reg u lar loan fees and be given th e u n ­
conditional g u aran tee of liquidity on
th is m ortgage, everyone concerned
w ould have b e tte r contact w ith the
loaning agency, th e b an k could show a
fair profit on th e loan, and th e tre a s ­
u ry w ould not be w ritin g off these
large losses. If w e can legally hold
for b an king purposes th e bonds backed

It

by th e sam e elem ents th e n also by th e
sam e token we should be able to hold
the actual security.
Is it not possible for th e local b an k
to m ake a ch attel m ortgage for a fivey ear period if backed by th e sam e gov­
e rn m en t resources w hich are used to ­
day in direct com petition w ith us?
F o r th e p ast few y ears w e have been
lending t h e T reasu ry D epartm ent
m oney a t extrem ely low rates. T his
m oney has been used in d irect and in ­
direct com petition to us a t a hig h er
rate. It is needless to say th a t m any
rem u n erativ e offices held by people
w ho are inexperienced in banking
w ould be done aw ay w ith. In stead of
having as m any governm ent agencies
as th ere are trip led letters in th e E n g ­
lish language th e w ork could be h a n ­
dled by related consolidations u n d er
one head.
W e have th e FHS, certainly th ere
are m any banks now holding th e pa­
p er of this in stitu tio n and on th e same
kind of hom es th a t th e Jo n es’s have
over on T en th street. Could y o u r b ank
have m ade th a t loan? C ertainly you
could u n d er th e sam e circum stance if
th e liquidity of th e loan is satisfactory
and w ith g re a te r satisfaction to th e
borrow er.
If you do not believe th a t these facts
as to y o u r ability to do th e job b etter,
th e n I refer you to th e charge-offs
m ade by th e RFC on F e b ru a ry 8, 1938.
The RFC w rote off as w orthless $2,691,000,000 of its assets. These w rite ­
offs exceeded th e en tire am ount lost
by all th e depositors in all of th e banks
in th e U nited States of A m erica from
1930 to 1933. T hese losses could not
have happened in th is or any o th er in ­
stitu tio n if b an k ers had th e rig h t
w atch dogs m aking th e appraisals.
T here are some o th er item s ban k ers
m ight consider seriously to increase
th e ir profits. You can tra n sfe r m oney
for th e public cheaper th a n th e postoffice d ep artm en t by selling m oney or­
ders and inform ing th e public of the
fact. A re you still cashing AAA
checks (a portion of w hich you pay)
for nothing? Do all th e PW A, CCC,
ABC and XYZ check-holders get th e ir
cu rrency tra n sfe rre d by you for n o th ­
ing? If th ey do, w h y are m y checks
charged exchange? No one has to
w o rry seriously about m y com petition.
(T u rn to page 32, please)

15

News

and

O F THE

B A N K IN G

V iews
W O RLD

By Clifford De Puy
N E w ell-know n com m entator has
suggested th a t th e R epublican
slogan m ig h t w ell be “Change political
horses now to keep the Trojan horses
out of America.”

O

William Duncan, Jr., secretary of
th e M innesota B an k ers A ssociation,
h ad one of th e m ost successful conven­
tions in th e h isto ry of th e organization
a t th e 51st a n n u a l g ath erin g in M inne­
apolis last m onth.
T he to tal re g istra tio n th is y e a r w as
1,720, and w as only 15 less th a n 1939,
w h en th e y h ad 1,735 a t th e 50th an n u al
convention, th e larg est on record.
D. E. Crouley, a ssista n t cashier of
th e N o rth w e ste rn N ational B ank and
T ru s t C om pany of M inneapolis, w as
ch airm an of th e golf com m ittee of th e
M. B. A. and did a fine job of aw arding
th e golf prizes th e n ig h t of th e sm oker.
P rizes w ere given for low scores,
high scores and alm ost every o th er
com bination im aginable.
E ig h t special prizes w ere given to
th e follow ing w ell-know n b an k in g
golfers:
1. Herman Matzke—pipe and chain.
2. W. P. Jones—fu r line gaboon.
3. Roy Ellingson—rasp b erries.
4. Frank Powers — p a ten ted head
h older dow ner.
5. Merideth Anderson—-better golf
book.
6. Bob Putnam—binoculars.
7. W alt Payne—to ilet p ap er book.

2. T hey didn’t know th e address of
th e M innesota B ankers A ssociation.
3. T hey didn’t know th e capital of
M aryland.
4. T hey didn’t know th e line after
“Shoot, if you m ust, th is old grey
head.”
5. T hey didn’t know how to spell
ch arivari.
6. T hey didn’t know how m any col­
um ns to a new spaper page.
7. T hey didn’t know how m any col­
ors th e re are in a rainbow .
8. T hey didn’t know how m any years
W iliam D uncan, Jr., had been secre­
ta ry of th e M innesota Association.
P. S. A nd n eith er did a lot of those
sittin g in th e audience.
W. L. H em ingway, presid en t of th e
M ercantile-Com m erce B ank and T ru st
Com pany of St. Louis, has consented
to accept th e office of second vice p re s­
id ent of th e A m erican B ankers Asso­
ciation at th e A tlantic City convention
in New Jersey th is fall if he is elected,
and judging from th e rep o rts th ro u g h ­
out the co u n try th ere is no doubt he
w ill be.
If elected at A tlantic City, he w ill


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Robert M. Hanes, presid en t of th e
A m erican B ankers A ssociation, and
p resid en t of th e W achovia B ank and
T ru st Com pany of W inston-Salem ,
N orth Carolina, told a story at th e b an ­
quet about a colored boy testifying as
to th e ch aracter of M ary, a colored
girl.
I can ’t rep eat th e story here, b u t you
ask him to tell you, it’s a dandy.
Alden Pearson, cashier of th e Beck­
er County N ational B ank of D etroit
Lakes, M innesota, w hose deposits are
$1,100,000, told us a t th e convention
th a t th e crop outlook in his te rrito ry
w as th e b est in 10 years.

Robert Kneebone of Chicago, w ho is
connected w ith th e A m erican B ankers
A ssociation, m ade a sh o rt address be­
fore th e sm oker a t th e M innesota
B an k ers C onvention and said th a t th e
“A. B. A. w as ju s t like an elep h an t be­
cause it w as so diversified.” Does th e
referen ce to th e elep h an t m ean a R e­
publican victory?
L. O. Olson, cashier of th e M idland
N ational B ank and T ru s t C om pany of
M inneapolis, and convention general
chairm an, introduced Cedric Adams
of th e M inneapolis Star Journal, w ho
conducted an “In fo rm a tio n , P lease?”
p ro g ram a fte r asking 6 b an k ers to
come up on th e platform .
H ere are som e of th e questions
w hich th e b a n k e rs did not know:
1. T h ey did not know how m an y
b an k s th e re are in M innesota.

office in th e A. B. A. I did agree, u n ­
der certain conditions, th a t I w ould
accept th e office if it is tendered to
m e.”
Mr. H em ingw ay’s m any friends be­
lieve th a t he w ill have little trouble in
receiving m ore th a n enough votes of
th e delegates to assure his election.
Mr. H em ingw ay has long been ac­
tive in A. B. A. affairs and has held
m an y im p o rtan t positions in th e or­
ganization, including m em berships in
the executive council and ad m in istra­
tive com m ittees.
T he only o ther candidate for th e
office of second vice presid en t is Rus­
sell G. Smith, executive vice p resident
of the B ank of A m erica N ational T ru st
and Savings A ssociation of California,
w hich is th e A. P. Giannini b ran ch
b an king outfit.
Mr. S m ith’s su p p o rt w ill come al­
m ost en tirely from b ran ch banking in ­
terests in California. Mr. H em ingw ay
is a stro n g advocate of th e independ­
e n t dual banking system , and his sup­
p o rt w ill come from independent and
u n it b an k ers th ro u g h o u t th e en tire
U nited States.

w.

L. H E M IN G W A Y

be in line for the presidency of the
A. B. A. in 1942.
In a recen t le tte r to th e N o r t h w e s t ­
e r n B a n k e r , Mr. H em ingw ay said:
“I
appreciate v ery m uch th e kindly ex­
pressions contained in your letter, b u t
I am not m aking a cam paign for any

J. S. Pomeroy, vice p resid en t of the
Pfirst N ational B ank and T ru st Com­
p any of M inneapolis, and Mrs. Pom ­
eroy, have a daughter, Mrs. Giuseppe
Cinelli of Florence, Italy, w ho w as no­
tified by th e A m erican Consul to leave
Italy last m onth.
Mrs. Cinelli, th e form er Margery
Pomeroy, w as m arried 13 y ears ago
and has retain ed h e r U nited States
citizenship.
W ith h e r husband, a native of F lo r­
ence, and 11 y ear old daughter, Giuliana Mrs. Cinelli visited M inneapolis
last sum m er. Mr. Cinelli is a m anu­
factu rer of w om en’s h ats in Florence.
H ere is a new k ind of financial ad­
vertisin g —-at least it w as to us. It ap ­
peared in a recen t issue of th e M inne­
apolis Star Journal.
(T u rn to page 22, please)

16

"Theory and practical observation lead me to the conclusion that one of the chief causes
of our violent price fluctuations in America is bad banking. Bad banking, not as practiced
by you gentlemen in your own business, but bad banking as practiced by our politicians
who came into control of American banking through the adoption of our Federal Reserve
System."

W h y W e Have Boom s and D ep ressio n s
A N K ERS are th e ones w ho handle
th e m oney w hich circulates to cre­
ate our natio n al income. Some­
tim es we seem to have an over-supply
and a business boom, at o th ers a scar­
city and a depression. I t is a sad and
strik in g coincidence th a t our stu d y be­
gins th e y e a r th a t th e first W orld W ar
sta rte d and, a fte r tw enty-six years, we
come dow n to 1940, only to know th a t
an o th e r w orld w ar is g ettin g actively
u n d er way. But, th is restless co u n try
of ours seem s able to w o rk up boom s
and go into depressions in w a r tim es
and peace tim es. In fact, since th e be­
ginnin g of th e U nited States, booms
and depressions have occurred so reg ­
u larly th a t no o th er n atio n in th e
w orld illu stra te s th e cyclical th e o ry so
w ell as we do. F o r th e first h u n d red
y ears we accepted th ese as grow ing
pains but, as we becam e older, decided
to do som ething about it and, u n d e r
W oodrow W ilson, adopted th e F ederal
R eserve System of banking.

B

This system of cen tral ban k in g w as
set up especially w ith th e object of
sm oothing th e peaks and valleys but,
as you m en w ell know , our boom s and
depressions have been fa r m ore vio­
lent since 1914 th a n ever before. You
can see th is a t a glance if you w ill
refer to th e statistical h isto ry of th is
co u n try since 1914. Since th a t tim e
we have had th re e g re a t cycles (w hich
are indicated by th e figures m ark ed
w ith an a ste risk ). T he first w as th e
com m odity boom u n d e r W oodrow W il­
son, w hich sta rte d in 1914 and reached
a peak in 1920. The n e x t w as th e
Coolidge stock m a rk e t boom, w hich
carried th e Dow-Jones In d u stria l A ver­
age from 63 in 1921 to a peak of 380
in 1929. The th ird is o u r gov ern m en t
bond boom of R oosevelt’s a d m in istra ­
tion, w hich has reduced th e yield on
U nited States g o v ern m en t three-year
notes from about 3 p er cent dow n to a
yield of less th a n one-half of 1 p er
cent. T his decline in yield in equiva­
lent to a rise about as g re a t as th a t

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

By W . G . Kahlert
Resident Partner
Jamieson & Com pany, Minneapolis
Minnesota

have th e an sw er rig h t in y o u r own
business.
T heory and practical observation
lead me to th e conclusion th a t one of
the chief causes of our violent price
fluctuations in A m erica is bad banking.
Bad banking, not as practiced by you
gentlem en in y o u r own business, b u t
bad b an king as practiced by our poli­
ticians w ho came into control of A m er­
ican b an king th ro u g h the adoption of
our F ederal R eserve System.
B ank credit cannot be over-extended
in relatio n to reserves, th e b an k er
m ust have sound ju d g m en t as to th e
d eb to r’s capacity to pay, dem and de­
posits m u st not be created out of long­
term assets and loans m u st not be
m ade ag ain st inflated values.
W hen a sm all tow n b an k er m akes
m istakes he generally h u rts only his
b ank or sm all com m unity; w hen a
great New Y ork bank m akes th em it
m ay drag some o ther banks w ith it.
W hen th e P resid en t of th e U nited
States has a policy w hich is financed
w ith the credit of th e F ed eral R eserve
banking system , th e w hole co untry is
caught up in th e w h irlw ind of expan­
sion and crashes w hen th e end of th a t
p articu lar schem e of u n sound banking
is reached.

W . G. K A H L E R T

experienced by com m on stocks from
1924 to 1929. These trem endous pricefluctuations have not only caused great
u n se ttlem en t and suffering b u t have
finally reached th e stage w here our
A m erican system of doing business
and our form of g overnm ent are
th reatened. It is of th e u tm o st im por­
tance th a t our people u n d erstan d th e
cause of booms and depressions, and
some w ay be found to elim inate them
in th e future. I th in k you ban k ers

W hen com m odity prices crash th e
Chicago Board of Trade, and th e g rain
gam blers are blam ed for th e condition.
W hen th e stock m a rk e t crashes, W all
S treet is to blam e for th e depression.
These booms and depressions are clear­
ly th e re su lt of th e financial policy of
the ad m in istratio n at W ashington.
The p riv ate banks of th e co u n try have
been k n it into one v ast group and,
th ro u g h th e F ed eral R eserve and th e
F ederal T reasury, y o u r in te re st rates,
y o u r collateral, th e expansion and con­
tractio n of y o u r loans and all im por­
ta n t policies have been decided for
you at W ashington.
In stead of p u ttin g p aper rep re se n t­
ing com m odities a t inflated prices, or

________

17
com m on stocks, w e are now p u ttin g
p ap er re p re se n tin g th e I. O. U.’s of our
politicians into our b an k in g system
an d w ritin g checks ag ain st them . As
in 1919 and 1929, no one stops to ques­
tio n w h e th e r th ese bonds a re w o rth
th e b an k cred it issued ag ain st them .
Again, we know th a t it is th e policy of
W ashington to have it th is w ay and
we go along.
T his type of inflation places alm ost
u n lim ited funds in th e h ands of our
politicians. The F ed eral governm ent,
states, cities an d counties can obtain
m oney even th o u g h th e y are o perating
a t a deficit. W ith balance sheets, and
incom e and ex p en d itu res on a basis
th a t w ould stam p a p riv ate business
as hopelessly b a n k ru p t, y e t m any of
our g o v ern m en tal subdivisions can
b orrow m oney a t a ra te fa r low er th a n
can a solvent corporation. The gov­
e rn m e n t m ay give th e m oney aw ay,
and have no asset to show for it, w hile
th e business w ould in v est it in a p ay­
ing p la n t and m ach in ery w hich w ould
create m ore jobs. B ut m oney can be

obtained cheaper by th e governm ent
to h an d out in relief th a n by business
to p u t m en to w ork.
T his is n ot th e fau lt of th e banks or
th e stock m arket, or in v estm en t b an k ­
ers. It is th e re su lt of W ashington
policy. Today, our politicians are v o t­
ing a billion for th is an d a billion for
th at. To get th e m oney it is only nec­
essary to p rin t a n o th er batch of gov­
e rn m en t bonds, p u t th em into the
b anking system and w rite checks
ag ainst them . W ould you call th a t
sound banking? H ave we not y et
learned th e danger of deposits being
tied up in long-term assets?
H ere is the dilem m a w hich faces the
n ex t ad m inistration, R epublican or
D em ocrat: If th is v ast am ount of sy n ­
th etic capital, available at such a ttra c ­
tive in te re st rates, is perm itted to flow
into business and s ta rt recovery, no
one w ill w an t go v ern m en t bonds be­
cause of g reater opportunities else­
w here. If we become m ore deeply in ­
volved in E u ro p e’s w ar, our debt w ill
ju m p at th e ra te of $15,000,000,000 a

THE

Year

1914
1915
1916
1917
1918
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939

N A T IO N A L

Loans and
Investm ents
All Banks

Com­
m odity
Prices

Individual
Stock
Prices

(3 Ciphers (tm itted)
$20,788,000
8 1,923,000
21,466,000
1,822,000
24,586,000
2,325,000
28,286,000
2,922,000
31,813,000
3,160,000
36,572,000
3,162,000
41,684,000
2 ,930,000
40,250,000
2 ,966,000
38,918,000
3 ,685,000
42,972,000
3 ,933,000
44,453,000
4 ,289,000
4 ,423,000
47,911,000
4 ,412,000
50,830,000
52,462,000
4 ,564,000
55,327,000
4,373,000
58,019,000
4 ,127,000
4,291,000
57,386,000
49,704,000
4 ,643,000
3,818,000
46,071,000
40,089,000
4 ,500,000
42,500,000
*8,000,000
*9,000,000
44,400,000
48,400,000
*10,500,000
49,600,000
*12,500,000
47,300,000
*14,000,000
*18,000,000
49,954,000

* 68.1
* 69.5
* 85.5
*117.5
*131.3
*138.6
*154.5
97.6
97.7
100.6
98.1
103.5
100.0
95.4
97.7
96.5
84.0
70.0
65.0
66.0
75.0
80.0
81.0
88.0
77.0
81.0

53
80
110
65
80
119
80
* 63
*100
* 90
*100
*140
*150
*180
*280
*380
160
80
40
108
85
120
170
190
100
140

Gold
Stock

IN C O M E
Yield
U. S.
Notes

__
__
__
__
__
__
__
__
__
__
__
__
__
__
__
__
*2.97
*2.00
*2.50
*2.60
*1.47
* .53
* .48

Federal
D ebt
Billions

$ 1
1
1
5
20
26
23
23
22
22
21
20
19
18
17
16
15
17
20
*23
*28
*29
*33
*37
*39
*43

* S in c e 1914 w e h a v e h a d t h r e e g r e a t cy c les, w h ic h a r e in d ic a te d b y th e f ig u re s m a r k e d w ith a n a s te r is k .


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

y ear as it did in 1918 and 1919. A few
y ears of th a t and th e public would
stam pede from th a t m ountain of debt
w ith an en thusiasm th a t w ould m ake
1919 and 1929 seem like Sunday School
picnics. And w hen th a t day comes,
our politicians w ill learn th a t th e rig h t
to m eet its obligations w ith paper
m oney does not sim plify th e problem s
of th e governm ent, n o r lessen th e d an­
ger of booms and depressions for the
public. Capital is a w orld-wide com­
m odity. Its price, in te re st rates, can­
not be fixed by legislation.
C entral b an king is a sound develop­
m ent and our F ederal R eserve System
a good type of organization.
Our
P resid en ts m u st learn to ad m in ister
along safe banking principles for fa­
vorable long-term developm ents, r a th ­
er th a n sensational resu lts d uring
th e ir own occupation of office. A closer
cooperation w ith p riv ate b an k ers and
g re a te r dependence upon th e ir p ra c ti­
cal experience w ould help us to use
th e v ast pow ers of a cen tral banking
and m o n etary system wisely.

25
25
25
00
00
00
05
0
5

0
0
0
0
0
0
0
7
5
0
5
0
5
5
0
0
0

N ational
Income
Billions

$35.64
37.20
43.20
51.33
60.40
65.94
73.99
63.37
65.92
74.33
77.13
81.93
85.45
88.20
85.40
85.00
71.00
52.00
37.50
40.00
50.00
55.00
63.00
70.00
55.00
68.00

P opu­
lation

95

__
__
__
__
106

__
__
__
__
__
__
__
__
__
123

__
__
__
__
__
129
130
—

Gold
P ro .
Millions

$ 448
472
455
421
384
358
334
331
320
369
385
384
395
394
390
397
432
460
498
525
* 958
*1050
*1154
*1229
*1400
*1600

18

Northwest Farm Cash Income
Approaches

TWO

Crop and Livestock Sales Make Retail Trade Rise and Factory Wheels Spin

A m e r i c a ’s g re a t “bread
and b u tte r land,” th e N o rth w est
from W isconsin to th e Rocky
M ountains, and so u th th ro u g h Iowa,
far-fam ed for its “Cow-Sow-Hen-SteerSheep” com bination of good farm ing,
is being proclaim ed as th e a d v e rtise rs’
one best bet for sales o p p o rtu n ities in
1940.
T his a re a ’s 1939 cash farm incom e
rolls up a to tal of m ore th a n $1,600,000,000, according to th e final federal
1939 report. It poured in a t th e ra te of
n early $2,750,000 a day—h ig h est since
1930—in M innesota, W isconsin, th e
Dakotas, Iow a an d M ontana.
T hese and o th er strik in g facts are
broadcast w idely in an address, “P ro s­
p erity A head,” before business groups
in im p o rta n t ad v ertisin g cen ters by
C harles F. Collisson, M inneapolis T rib ­
une N ew spapers’ farm editor.
“Dips in th e W all S treet m ark et, re ­
cessions in th e in d u stria l east, affect
th is n o rth w e st area v ery little, if a n y ,”
he says. “The real reason is not diffi­
cult to find. Our farm incom e zooms
up w ard since 1931, and is m ore th a n
tw ice th a t y e a r’s incom e in 1937 and
again in 1939.

“T hese five states are a g reat agricul­
tu ra l em pire. H ere our farm ers w rest
new w ealth co n stan tly by daily toil
from th e ir own soil. T hey also rebuild
th e ir lan d s’ fertility w ith livestock
farm ing and dairying.
“Our n o rth w est tow ns and cities en ­
joy lively trad e because th e ir own fac­
tories and in d u stries are largely a g ri­
cultural. T hey supply farm fam ily
w ants, or process th e products of crops
and livestock from su rro u n d in g farm s.

orth

N

“So factory w heels continue to spin,
and re tail store sales-curves to rise, be­
cause th ey are close to th e soil—th e
one p rim ary source of w ealth. F arm
incom e continues to rise, w ith b o u n ­
tifu l billion-bushel crops in 1939— (1,084,000,000 bushels of seven m ajor
crops).
“So farm fam ilies here are good cus­
tom ers for advertised goods. T hey w ill
be b e tte r custom ers in 1940 because
big crops of feeds and h ay assu re am ­
ple supplies and low costs for feeding
livestock.
“The corn crop is im m ense, w hile
livestock population is below average.
U ncle Sam ’s econom ists declare th a t

BILLION-DOLLAR FARM INCOME
PLUS BILLION BUSHEL CROPS
IN NORTHWEST 1959
______
M O N TAN A
Fo rm

In c o m e

1939
$ 9 6 ,0 2 3 ,0 0 0
G a in o f ¿ 4 %

N ORTH

I

DAKO TA

V

F a rm

In c o m e

1939
$ 1 3 8 ,1 6 0 ,0 0 0

M IN N E S O T A
\

F a rm J , " c o m e
\
1
J

SO UTH

(

D ÁKO TA

\

In c o m e

G a in o f 1 3 %

#

'* a ****~ *m.

G o in o f 3 5 %

F a rm

ns
Æ

1939
S 3 5 9 ,3 6 5 ,0 0 0
G a in o f 5

h

g

g

p

r

^

Í
J
1

/
W IS C O N S IN

1939
$ 2 8 5 ,0 0 8 ,0 0 0

|

|

"^4

^ ^ ^ D ro p of 4

o

IO W A

_______________________________________

W h en w e a d d to th e ab o v e th e to ta l fo r Io w a , th e T a ll C orn S ta te , w ith its
m ore th a n h a lf a b illio n ($659,359,000), w e h a v e b u y in g po w er in 1940 of th e
enorm ous t o ta l o f $1,661,859,000 in th is s ix -s ta te a re a of th e n o rth w e s t— th e
u p p e r M ississip p i v a lle y . I o w a ’s t o ta l is th e h ig h e s t of a n y s ta te , t h a t of
C a lifo rn ia b e in g second w ith $572,431,000.


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

m ilk cows p er capita of consum ers are
fa r below average.
“Our n o rth w est w h eat crops this
y e a r are 183,552,000 bushels and the
barley crop is 142,738,000 bushels. B ut
these are far exceeded by a corn crop
of 356,377,000 and an oat crop of 309,892.000.
“Our four cash crops, w heat, rye, po­
tatoes and flaxseed, are 275,285,000
bushels, b u t our th ree feed crops, corn,
oats and barley total 809,007,000 b u sh ­
els, w ith an 18,000,000-ton hay crop.
“Of our billion-dollar total incom e in
1939, it is in terestin g to see how little
of it comes from th e AAA benefit pay­
m ents, 11 per cent. Yet th ey am o u n t
in cash to $110,684,000, com pared w ith
$66,300,000 in 1938.
“Crop sales, how ever, b ring 24 per
cent or $239,686,000, a gain of $44,222,000 over 1938. The crop-livestock sales
com bined total $891,831,000. Of these
th e C ow -S ow -H en-S teer-S heep prod­
ucts roll up a to tal of $652,145,000 or
m ore th a n 70 per cent of all farmproduct sales.
“F arm fam ily w ants, too long de­
nied, are now being supplied.
“M innesota, long leader of all N orth
A m erica in flour m illing and fine
cream ery b u tte r m aking, leads th e
n o rth w est and is fifth in the ratio n
w ith $359,365,000 farm cash in 1939.
Of th is the dairy-livestock-poultry cash
is $244,578,000—-third in th e U nited
States. Crop sales are $88,188,000—■
AAA cash is $26,599,000. The total is
5 p er cent over 1938.
“W isconsin, first dairying, cheese
m aking, and condensery state received
$265,591,000.
Of th is the livestock
brings $232,936,000—fo u rth in th e n a­
tion. Crops b ring $32,655,000, the AAA
benefits $19,417,000.
“N orth D akota’s gain over 1938 is
th e hig h est percentage in the country,
35 per cent. The total incom e is $108,815.000, including $55,270,000 crops
sales, $53,545,000 livestock sales and
$29,345,000 from AAA.
“South D akota livestock income,
$78,675,000, far exceeds crop sales of
$22,232,000, or th e AAA cash. $23,052,000.”

19

STATEMENT
OF

C O N D ITIO N
r

J une 29, 1940
RESOURCES

-V

^

L o a n s a n d D i s c o u n t s ..........................................
$13,751,449.72
O v e r d r a f ts ..............................................................................................................................
1,632.05
U . S. G o v e r n m e n t O b l i g a t i o n s ....................................................................................
9,418,650.00
S ta t e a n d M u n ic i p a l B o n d s ...........................................................................................
5,580,313.90
O th e r B o n d s a n d I n v e s t m e n t s ..................................................................................... 3,330,509.76
B a n k in g H o u s e ..................................................................................................................
774,000.00
F u r n i t u r e a n d F i x t u r e s ....................
1.00
C u s to m e r s L i a b i l i t y U n d e r L e t t e r s o f C r e d i t ....................................................
13,625.00
I n t e r e s t E a r n e d b u t n o t C o ll e c t e d .............................................................................
158,682.00
O th e r A s s e ts ..........................................................................................................................
23,309.04
C ash on H a n d a n d D u e F ro m F e d e ra l R e se rv e B a n k
a n d O th e r C o r r e s p o n d e n t B a n k s ........................................................................... 16,816,411.22
$49,868,583.69

LIABILITIES
C o m m o n S to c k ...................................................................................................................$ 2,000,000.00
S u r p lu s ....................................................................................................................................
1,750,000.00
U n d iv id e d P r o f its ..............................................................................................................
205,134.21
R e s e r v e f o r C o n t i n g e n c i e s . . . . , ..................................................................................
157,177.92
R e s e r v e f o r T a x e s , I n t e r e s t , e t c ...............................................................................
103,428.63
R e s e r v e f o r D iv id e n d s D e c la r e d a n d U n p a i d ....................................................
30,000.00
C u s to m e r s L e t t e r s o f C r e d i t .........................................................................................
13,625.00
I n t e r e s t C o lle c te d B u t N o t E a r n e d .........................................................................
31,662.67
D e p o s its ................................................................................................................................... 45,577,555.26
$49,868,583.69


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

Is Property Left By W ill
Subject to Real Estate Lien?
An Iow a b ank obtained a ju d g m en t
ag ain st B row n th a t becam e a lien
upon an y real estate he ow ned or
m ig h t acquire. S ubsequently B row n’s
fa th e r died leaving a w ill in w hich
B row n w as disinherited.
B row n’s
fa th e r ow ned considerable real estate
a t th e tim e of his d eath and th is
passed to th e beneficiaries u n d e r his
will. F o r v arious reasons B row n
should have contested th e w ill, b u t he
declined to do so. T he b a n k w ould
have a lien on an y land th a t m ig h t be
com ing to him th e re u n d e r and, by
reason of this, sought to co n test th e
d isin h eritan ce of Brow n. Could it do
so?
Yes. A judgment creditor of an
heir of a testator has such an interest
by virtue of his lien on the heir’s
realty as entitles him to contest a w ill
purporting to devise to others land,
which, in the absence of a w ill, would
descend to the heir. Iowa, Minnesota,
Missouri, Ohio, Kentucky, and W iscon­
sin so hold, although Tennessee and
Alabama hold to the contrary.
W ells borowed $2,000 from a Ne­
brask a bank. H is w ife acted as s u r­
ety on th e note and, as an incident
thereto , pledged h er sep arate estate to
secure its paym ent. T he note w as not
paid w hen it cam e due and th e b ank
sued and recovered ju d g m en t thereon,
a p a rt of w hich ju d g m en t w as paid.
Some eleven y ears a fte r th e note w as
executed Mrs. W ells received a $5,000 legacy from h e r fa th e r upon his
death. In connection th e re w ith th e
ban k contended th a t th is sum should
be considered as hav in g been pledged
as secu rity for th e note. W as such
correct?
No. A pledge by a w ife of her
separate estate as an incident to act­
ing as surety on a note for her hus­
band’s debt does not include a $5,000
legacy from her father where the note
was executed some eleven years be­
fore her father’s death, as the legacy
was not the w ife’s property until her
father’s death. A contract of a mar­
ried woman can only be enforced
against the separate estate which she
possessed at the date of the contract.

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

These and Other Timely Legal
Questions A re Answered
By the

LEGAL DEPARTMENT

A Minnesota banker en tered into a
co n tract w ith B radley w h ereby B rad­
ley w as appointed “sole agent to sell”
certain realty ow ned by th e b an k er
in th a t state. B radley did not sell th e
pro p erty. L a te r th e b an k er sold it
to a p u rch aser w ho w as n ot procured
by th e agent. In such circum stances
w as th e b an k er liable to B radley for
a com m ission on account of th e sale?
No. A contract appointing one the
“sole agent to sell” realty for the own­
er does not, without more, deprive the
owner of the right him self to sell w ith­
out liability for commission to a pur­
chaser not procured by the agent.
Under South Dakota law a corpora­
tio n m ay, subject to certain condi­
tions, p u rchase its ow n stock out of its
su rp lu s funds. Does th is m ean th a t
it can purchase its stock only if it has
a su rp lu s of cash and o th er quick as­
sets?
No. In order that a corporation
may purchase its own stock the char­
acter of the surplus is immaterial as
long as it is a true surplus. Broadly
stated, a corporation is authorized to
purchase its own shares of stock to
the extent, and only to the extent,
that the intrinsic aggregate value of
its assets exceeds the sum of all its
liabilities plus the amount of its cap­
ital stock.
A North Dakota banker, w ho w as
quite old and w ho had re tire d from
business, deeded certain real estate in
th a t state to one of his children to
th e exclusion of th e re st of them . At
th e tim e his m ind w as w eak and im ­
p aired com pared w ith w h a t it had
been and he lacked capacity to tra n s ­
act general business. Subsequently
he died and his children, o th er th a n

th e g ran tee in th e deed, sued to set
it aside. The only evidence th ey had
w as th a t h erein outlined. Should th ey
p revail in such circum stances?
No. Old age alone does not affect
the competence of one to execute a
deed, even though his mind may be
weak and impaired compared w ith
what it has been, and even though
capacity to transact business generally
may be lacking.
Clamp, by letter, offered to sell to
E llison certain bonds for five th o u ­
sand dollars. E llison, by telegraph,
accepted. J u s t before E llison w ired
his acceptance Clamp w ired E llison
w ith d raw in g th e offer. E llison, how ­
ever, did n ot received Clam p’s w ith ­
draw al w ire u n til after he had sent
his w ire of acceptance. In such cir­
cum stances, w as th e deal a com pleted
one in w hich Clamp w as bound?
Yes. The rule supported by the
great w eight of authority in cases
where it appears that a revocation
was mailed, or telegraphed before but
not received until after the mailing or
telegraphing of the acceptance of an
offer is that the revocation is ineffec­
tive; that the mailing or telegraphing
of the acceptance of the offer com­
pletes the contract; and that, as the
revocation must, in order to be ef­
fective, be communicated to the of­
feree, a revocation communicated aft­
er the mailing or telegraphing of the
acceptance is inoperative to impair
the contract already consummated,
even though it was mailed or tele­
graphed before the consummation of
the contract by the sending of the ac­
ceptance.
Berry conducted, as a side-line, a
n u rse ry business on his farm . He b o r­
row ed five th o u san d dollars from a
b an k and gave to it, as security, a
m ortgage on th e property. N othing
w as said a t th e tim e of th e loan to
th e effect th a t th e m ortgage did not
cover th e n u rse ry stock. B erry failed
to pay, th e b an k foreclosed, and Cable
bought in th e p ro p erty a t th e fore­
closure sale. At th e tim e of th e fore(T u rn to page 32, please)

21

A p a r t of th e e x h ib it a t th e E m m e t C o u n ty A g ric u ltu ra l Show , spo n so red b y th e E m m e t
C o u n ty S ta te B a n k , E sth e rv ille , Io w a.

O u r Cali Club Builds
A L F clubs are n o t new. T hey
have been sponsored by various
o rganizations for a n u m b er of
years. Our county had a calf club
sponsored by th e local county agent,
b u t because of his* m an y and varied
duties, he w as unable to give it m uch
of his tim e. A fter full consideration
and stu d y of th e w ork, we decided th a t
we w ould tak e hold of th e calf club and
develop it. Our idea w as th a t th is com ­
m u n ity w as an ideal cattle feeding te r ­
rito ry , because of th e fine crops raised
each y e a r—corn, oats, barley, alfalfa,
clover, etc. To m ake a good feeding
district, farm ers m u st know and a p p re­
ciate q u ality in cattle. It w as our
th o u g h t th e re w as no b e tte r place to
s ta r t th a n w ith th e boys and girls of
th is com m unity. W e believe th e re is
no b e tte r place to live and no b e tte r
occupation today th a n on th e farm .
W e m ig h t help some boys and girls to
tak e m ore in te re st in th e farm .
All th is w e considered carefully, and
th e n proceeded to w rite to m any
sources for inform ation. Our county
agent, w ho w as v itally in te re ste d and
a h a rd w orker, gave valuable aid and
advice. W e also h ad th e cooperation of
o th er d irecto rs of th e local farm o r­
ganization.
In 1937 th e re w ere th irty calves in
th e calf club sponsored by th e local
farm organization. W e realized at once
th a t we w ould have to go out and se­
cure th e cooperation of th e boys and

C


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

By W . C . Currell
President
Emmet County S t a te Bank
Estherville, Iowa

girls and th e fath ers and m others. At
th e o u tset one of our assistan t cashiers,
W ayne L. Vallie, took m uch in te re st in
th is work, and m ade special studies of
his own. He took charge of in te re st­
ing th e farm boys and girls of th e com­
m unity. He spent tw o or th ree w eeks
calling on th e boys and girls and v isit­
ing w ith th e parents. The resu lts w ere
highly encouraging. T hrough these
efforts th ere w ere seventy additional
calves th e previous year. W e realized
th a t if th e calf club w as to be a success,
it w as necessary to purchase th e rig h t
kind of calves to allow th e boys and
girls to com pete fairly for th e cham ­
pionship honors. So w ith th e county
agent, and one farm er, w ho w as very
m uch in terested in club w ork, we sent
Mr. Vallie out to the w estern states to
pu rchase calves. T hey w ere success­
ful in purch asin g fifty-five head of fine
calves, and w e advanced th e m oney for
th e ir purchase. W e w ere advised by
m any experienced farm ers th a t th ey
w ere as fine a h erd as ever w ere in the
com m unity. The first w eek th e calves
w ere k ep t to g eth er and p ro perly h a n ­
dled. W e th e n num bered each calf and

on th e day of allotting th e calves, we
called all th e boys and girls in and had
them draw num bers from a hat. The
n u m ber corresponded to th e n u m ber
on a calf. In th is m an n er every boy
and girl had fair tre a tm e n t in th e selec­
tion of th e calf. Of course, any boy or
girl had th e rig h t to purchase th e ir calf
anyw here th ey chose. The idea of our
pu rch asin g th e calves w as to give
everyone a good calf.
A fter th e calves w ere placed w ith the
boys and girls, we had each sign a note
for th e ir anim al, w ith th e ir fath er or
m other as co-signer. In th is m an n er it
ta u g h t th e boy and girl th e use of
credit, and fu rth e r m ade him or h er
realize th e ir responsibility for th e calf,
and in addition, gave th em th e pride of
ow nership.
W ith th e aid of th e county agent,
Mr. Vallie kep t in touch w ith th e boys
and girls d u rin g th e w in ter and spring
to see how th e calves w ere being tak en
care of, and to offer suggestions as to
feed and care. If you have n ever seen
one of these young folks glow over
th e ir calves, you have m issed som e­
thing. It m akes you feel glad you had
some sm all p a rt in helping them .
I m ight say here, we purchased th e
calves in Septem ber, and held th e ex­
hib it th e la tte r p a rt of th e following
August.
W hen it came to th e exhibit of th e
calves, th e county agent, and several
farm ers interested, gave valuable as­

22
sistance. W ith th e ir aid and th e co­
operation of th e business club of our
tow n, te n ts w ere secured in w hich to
hold th e exhibits. A com petent judge
of livestock w as secured, and he se­
lected a g ran d cham pion and placed
th e oth ers accordingly. T h ere w ere a
total of one h u n d re d calves exhibited
in 1938 as com pared to th irty in 1937.
N atu rally th is in crease caused consid­
erable in te re st in th e club w ork. A fter
th e baby beeves w ere show n for tw o
days, th e y w ere sold at an auction sale,
and th e prices received w ere m ore
th a n satisfactory.
A fter th e show we sta rte d plans for
a fu rth e r increase in th e n u m b er of
boys and girls in te re ste d in club w ork
for 1939. A gain Mr. V allie sp en t con­
siderable tim e calling on all w ho m ight
be in terested in ta k in g part. The re ­
sult of th e contacts w as v e ry encourag­
ing, and it w as again n ecessary for us
to go to th e w estern states to purchase
calves. T his tim e th e y secured sev­
enty-nine calves for us. The sam e
m ethod of selection w as used as before.
Also th e calves w ere checked as before.
The in te re st had spread and m any p u r­

chased calves in th e com m unity or at
th e sale barns.
As one of th e problem s w as to find a
place to exhibit th e calves, th e county
ag en t sta rte d a m ovem ent am ong the
business m en and farm ers to build su it­
able buildings for th e calves. The re ­
sponse w as indeed rem arkable. The
to tal cost w as about $3,000, one-half of
w hich w as raised by th e farm ers, and
th e o th er h alf by th e business men.
The buildings are to be used for boys’
and g irls’ club exhibits only.
So w hen th e calf club exhibit w as
held th e 16th, 17th and 18th of A ugust
last year, m ore in te re st th a n usual w as
show n. W e w ere greatly pleased to
see th e n um ber of calves on exhibit
increase to one h u n d red forty-two.
W ith th e added facilities, a few ex­
hibits of pigs w ere shown. On th e last
evening, a program w as arranged, and
w as w ell received by a large crowd.
W e p resen ted a silver loving cup to the
w in n er of th e g ran d cham pion. The
g eneral reaction to th is w as indeed en ­
couraging.
As before th e calves w ere sold at auc­
tion, and th e buyers from th e various

packing com panies w ere on h an d at
th e sale. T he prices w ere again satis­
factory.
P lans are u n d er w ay now for a fu r­
th e r expansion of th e calf club exhibits
th is y ear and to create w ider in terest
in th e club. T he w ork is extrem ely in ­
teresting, and w e believe of in estim ­
able value to th e com m unity. It takes
considerable tim e and effort, b u t w h at
b e tte r w ork can we do th a n help our
boys and girls to g re a te r things?

A

N EW S A N D VIEW S
(C ontinued from page 15)
“Wanted—25 more honest people in
debt. If you owe $100 to $1,500, write
B-8005, Star Journal. Not a loan com­
pany.”
General Hugh Johnson w as th e m ost
colorful speaker a t th e M innesota
B ankers Convention and did n ot dis­
appoint th e crow d a t th e banquet,
w hich w as th e largest th e association
had ever had.
T he G eneral has gained a t least 25

■X,

r

DANIEL F. BULL
President, Cream of Wheat
Corporation

G. NELSON DAYTON
President
The Dayton Company

T H R E E new d ire c to rs — Daniel F. Bull, Lyman E. Wakefield,
a n d Valentine Wurtele— w ere e le c te d to th e b o a rd o f N o rth ­
w e ste rn N a tio n a l L ife In s u ra n c e C om pany a t th e c o m p a n y ’s
a n n u a l m ee tin g , O. J. Arnold, p re s id e n t a n d m a n a g in g d ire c to r
ann o u n ced . E. L. Carpenter, T. F. Wallace, a n d Mr. Arnold
w ere re elec ted .
W ith th e a d d itio n o f th e th re e d ire c to rs a n d G. Nelson Dayton,
p re s id e n t of th e D a y to n C om pany, w ho w a s e le c te d a y e a r ago,
N o rth w e s te rn N a tio n a l L i f e ’s tr a d itio n a l n in e-m an b o a rd is
e x p a n d e d to th irte e n . H o w ev e r, th e tr a d itio n h a s b e en m a in ­
ta in e d of n a m in g to m em b e rsh ip on th e b o a rd m en o f w id e b u s i­
ness, civic, a n d social re sp o n sib ilitie s. M r. B u ll is p re s id e n t o f
th e C ream o f W h e a t C o rp o ra tio n , M r. W ak efield p re s id e n t o f
th e F i r s t N a tio n a l B a n k a n d T ru s t C om pany, a n d M r. W u rte le
p re s id e n t of th e M in n e so ta L in se e d Oil C om pany.
T he m e e tin g also v o te d to in c re a se th e p a r v a lu e of th e com ­
p a n y ’s c a p ita l sto c k fro m $5 to $7.50 a sh a re, th e re b y in c re a s ­
in g its c a p ita liz a tio n fro m $1,100,000 to $1,650,000. T h is in-


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

LYMAN E. WAKEFIELD VALENTINE WURTELE
President, First National Bank President, Minnesota Linseed
and Trust Company
Oil Company
crea se w ill be effected b y t r a n s f e r r in g $550,000 fro m th e e a rn e d
su rp lu s in th e sto c k d e p a rtm e n t to c a p ita l a c c o u n t.
C om m en tin g on th e s e a c tio n s, M r. A rn o ld sa id : “ T h ree o f
th e nin e m em b ers o f th e v e te ra n b o a rd — F. A. Chamberlain,
E. W. Decker, a n d C. T. Jaffray— h a v e se rv e d N o rth w e s te rn N a ­
tio n a l L ife c o n tin u o u sly fo r 35 y e a rs, n o t o n ly as d ire c to rs b u t
as m em bers o f th e im p o rta n t e x e c u tiv e a n d finance c o m m itte es.
T he a v e ra g e p e rio d o f se rv ic e on th e b o a rd fo r th e n in e is 22
y e a rs. Such c o n tin u ity o f m a n a g e m e n t b y a co m p a ct b o d y o f
m en o f la rg e a ffa irs w ho h a v e a c tiv e ly su p e rv ise d th e com pany
has b e en of im m e a su ra b le v a lu e , e sp e c ia lly d u rin g th e d e p ressio n
y e a rs as re fle cte d in th e c o m p a n y ’s u n u su a l re c o rd of sound
g ro w th a n d th e excellence o f its in v e s tm e n t p o rtfo lio .
“ T h is in fu sio n o f n ew b lood in to th e d ire c to ra te is a fo resig h te d a c tio n g iv in g a ssu ra n c e t h a t th e sam e h ig h d e g ree o f
b u sin e ss sta te s m a n s h ip t h a t h a s m a rk e d th e b o a r d ’s counsels in
th e p a s t w ill p re v a il f o r y e a rs to c o m e .’ ’

<-

*

f

23
or 30 pounds in th e last y e a r or so, and
looks m uch heavier. H is secretary,
b e tte r know n as “Bobby,” sat a t th e
end of th e sp e a k e r’s table and followed
his p rep ared m a n u sc rip t w ord for
w ord. A fter th is th e m eeting w as
th ro w n open for questions, and she
m ade notes on all of his answ ers.
J u s t before com ing dow n to th e b a n ­
quet, th e G eneral h ad cu t h is chin
w hile shaving, and w as bu sy for th e
first te n m in u tes or so u sin g his h an d ­
k erch ief to stop th e tric k lin g blood.
A m ong som e of th e m ore p u n g en t
p a ra g ra p h s in th e G eneral’s speech
w ere these:
“Gold is som ething th a t all m en de­
sire and w ant, and I am glad th a t th e
U nited S tates h as too much rather
than too little.”
“H enry Morgenthau is th e g re a te st
S ecretary of th e T re a su ry since W illie
W ooden.”

This is not a n afterthought but the
m ain point of our m e ssa g e , for P. S.
in this in sta n ce m ea n s

PRO FIT a n d SERVICE

“D ebts are a curse, b u t we are due to
double our national debt or lose it all.”
“W e w ill n o t have inflation in th is
co u n try for 4 reasons:
(1) Because of our gold supply, (2)
Because we are a creditor nation, (3)
Because o u r debt can be controlled,
an d (4) Because taxes w ill p re v e n t a
big in crease in prices.”
“T he U nited States is th e stro n g est
and g re a te st n atio n in th e w orld, but
is hasn’t a true friend anywhere in th e
w orld.”
“Only th e U nited States doesn’t
know ab o u t its m ilita ry w eakness—all
other nations know .”
“Franklin D. Roosevelt and Adolf
H itler cam e in to pow er a t th e sam e
tim e—7 y ears ago, an d H itle r arm ed
G erm any w hile w e sp en t $3,000,000,000
for ra k in g leaves.”
“P re sid e n t R oosevelt has played pol­
itics w ith o u r n atio n al defense. L et us
p ra y God to deliver us from the fourth
N ew Deal.”

Profits to p olicy hold ers in sa v in g s together w ith
an u n p a ra lleled inspection a n d loss service g iv e
W estern M utual p o licies a n e w h igh in public
a c ce p ta n c e.
Liberal com m issions p lu s th ese a d v a n ta g e s m ake
W estern M utual a Most profitable outlet for your
b u sin ess.

FIR E — AUTOMOBILE
LEGAL RESERVE
NON-ASSESSABLE
POLICIES OF COURSE

“Our silv er p u rch asin g policy has
been sheer, crooked lunacy.”
“I don’t w a n t Ja p a n to cru sh China
or tak e T he N eth erlan d s an d B ritish
tin an d ru b b e r islands. B ut o u r stake
in C hina and C hina T rade is less th a n
Harry Hopkins in a good month spent
for raking leaves.”
“T his a d m in istratio n has gone hog
wild on m ak in g th e w orld safe for
dem ocracy.”
“The

good

n eighbor

policy

W ESTER N M UTUAL
FIRE INSURANCE COMPANY
DES MOINES

Safety and Service with Savings
for over a third of a Century

is a
N orthw estern B anker


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

July 1940

4

24
bunch of bunk, because th e L atin
A m erican countries despise the U nited
S tates.”

JLHE objective of every banker
is to operate and maintain a
sound and prosperous institu­
tion.
Adequacy of service to customers

“P resid en t Roosevelt has been bluff­
ing w ith a w a te r pistol, and you can’t
do th a t w ith gan g ster gunm en.
“Yet we h e a r th a t Mr. Roosevelt
m u st have a th ird term , because only
he can be relied on to p rep are us for
defense and conduct our relations w ith
a w orld a t w ar.”
.T. C. W illiams, vice p resid en t of the
C o m m e r c e T ru st Company, w as
elected presid en t of th e b an k ers club
in K ansas City at th e an n u al m eeting
held at th e In d ian H ills co u n try club
recently. The re tirin g p resid en t of
th e club is George H. Buecking, p resi­
dent of th e B altim ore bank.

>

and facilities that meet every
•r

banking* need are factors that
promote success.
This Bank has been serving outof-town correspondents for up­
wards of 136 years. A continuous
growth in deposits and resources
is evidence that we have served
them well.
j.

... THE ...

P H IL A D E L P H IA
NATIONAL BANK
ORGANIZED 1803

PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$ 42 , 000,000
M em ber of F ederal D eposit Insurance C orporation

c.

W IL L IA M S

Mr. W illiam s has long been active in
th e b anking fra te rn ity , not only of
K ansas City, b u t of his hom e state, and
is w idely know n also in th e A m erican
B ankers Association.
Ben DuBois, secretary of the In d e­
pendent B ankers A ssociation of Sauk
Centre, M innesota, in a recen t bulletin
to m em bers of his association, said:
“W ar for th e tim e being obliterates
every th in g else from th e picture, b u t
we m ust not, we cannot su rre n d e r to
to ta lita ria n economic conditions.
“Do you believe th a t our old system
of banking is w o rth preserving? If so,
are you w illing to play yo u r p a rt in its
preservation? T he only w ay b ranch
b an king can be stopped is th ro u g h
F ederal legislation, and in th e MillerP atm an Bill we have th is legislation in
excellent form .”
(T u rn to page 39, please)

N orthw estern B anker

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

Ju ly 19bO

f

25

The Month’s Market Maneuvers
As we write this
on the morning of
Thursday, June 27,
a sentence f r o m
our article of hut a
month ago is most
interesting — “Tod a y Germany is
still drawing h e r
band of s t e e l
JA M E S H. CLARKE
around A l l i e d
troops in Belgium —Calais has fallen
—hut the French are pounding aAvay
at the German salient.” That was hut
thirty days ago and yet it seem s almost
as out of date as 1929’s stock prices.
W ith this in mind it is simple to see
that w ith the world war on an hour to
hour basis we write this morning with
a sense of futility.
A m o n th ago E ngland, B elg iu m and
France w ere fighting G erm any— today
E n g la n d alone is left. A m o n th fro m
n o w th a t m a y be changed. I n the face
of these w orld develo p m en ts th e m o v e ­
m e n ts in our m a rkets seem insignifi­
cant— but th e y are a definite part of
the schem e of th in g s— and w ill con­
tin u e to be. M a rkets w ill be badly dis­
torted during this period— can n o t help
but be. T he w ar is an active factor
both psychologically and concretely—
foreign trade is disru p ted — som e n ew
m a rk e ts are gained, m a n y old ones lost
— dom estic econom y is changed as ef­
fo rts are concentrated in w a r in d u s­
tries— taxes rise but so does debt—Gov­
e rn m e n t financing in large am ounts
m u s t be expected. These and m a n y
o th er factors m u s t be considered in
appraisals of the m arkets. A n d u n fo r­
tu n a te ly th e y do n o t lend th em selves
to a ny easy analysis.
D espite th e fact th a t th e new s in
Ju n e w as alm ost w holly bad from th e
stan d p o in t of th e Allies, th e m a rk e t
acted quite well. A p p aren tly th e b reak
in M ay discounted a lot. T he DowJo n es average on in d u stria l stocks w as
116.22 a t th e close on M ay 31—y e ste r­
day (Ju n e 26) it w as 119.23. D uring
th e m o n th th e stock m a rk e t did have
one bad sin k in g spell—d ropping as
low as 111.84 on Ju n e 11, b u t w ith in
tw o days it h ad rallied to 121.46. The
ra lly follow ed Ita ly ’s e n try into th e
w ar—th is action puzzled m any—b u t it
probably w as an o th e r case of b e tte r
prices from som e buy in g and some
sh o rt covering—“w ith all th e bad new s
o u t of the w ay.” To date th e re have


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Federal Reserve Bank of St. Louis

Prepared for
The Northwestern Banker

By James H. Clarke
Assistant Vice President
American National Bank & Trust Co. .
Ch ic ago

been tw enty-tw o days of trad in g th is
m o nth — gains have been rep o rted
tw elve tim es and losses ten.
The London stock market, despite
rigid restrictions in the selling of se­
curities, is now below the lows it hit
in 1932. Of course, that is to he ex­
pected and is mentioned here only be­
cause there are students of interna­
tional markets who look to London for
clues on our own market. If Hitler is
correct in his prediction that England
w ill he conquered by August, the E ng­
lish markets are still too high—even
though our Government takes over
their orders—there w ill he much to
confuse the students of business and
related movements in equity markets.
B onds in general gave a satisfactory
perform ance in June, U. S. G overn­
m e n ts and m unicipals w ere especially
strong in the face of new s w h ich ordi­
na rily should have p u t th e m down. I n
short, it w as a su p p ly and dem and
m a rk e t w hich p re tty m u ch overlooked
the foreign new s as w ell as necessity
of increased G overnm ent financing in
th e fu tu re. The long 2% s of 1965/60
closed on M ay 31 at 103.22 on the bid
side— the dealers this m orning in d i­
cate a bid of about 105.25. B etter than
a tw o p o in t rise during the m onth.
I t is too early to forecast w h a t we
shall see in th e calendar y ear in th e
w ay of G overnm ent financing. I t is a
c e rtain ty th a t despite increased taxes
th e T reasu ry w ill have to offer billions
of bonds and notes to provide th e p ro ­
gram of expenditures w hich Congress
has voted. T h a t banks w ill be in creas­
ing and n ot decreasing th e ir G overn­
m en t holdings in th e carry in g out of
th ese plans seem s self-evident. The
T re a su ry has passed up w h a t have
seem ed like good o pportunities to raise
new m oney on n um erous occasions in
recen t m onths—b u t th is can not con­
tin u e indefinitely. Offerings to raise
new m oney can n ot be far aw ay. T h at

th e T reasu ry w ill follow th e tra d i­
tional m ethods in selling these bonds
and notes seem s to be th e b est bet—
for th e n ear fu tu re.
General business aided by Avar or­
ders is good. It is likely that the Fed­
eral Reserve Board’s index of business
activity is around 115 now—compared
with 105 in May and 102 in April. And
it is still headed upward. W hile the
more or less automatic cancelling of
the French orders npset the steel mar­
ket for a feAV days, steel operations are
around 88 per cent of capacity. Last
month they Avere about 73 per cent. Of
greater significance is the fact that
practically none of our orders for steel
under our national defense program
have been placed yet. Automobile pro­
duction is down someAArhat and sup­
plies in dealer’s hands are adequate.
This is not surprising under present
conditions. But carloadings are mount­
ing—the first tw enty railroads report­
ing for the week June 22 indicating
a gain of 13.17 per cent over the sim ­
ilar Aveek a year ago. Based on the
Avar and our OAvn plans for defense the
outlook is for increased business in a
number of industries—but a sudden
peace could raise hob w ith a lot of
forecasts.
Corporate bonds have been doing
fairly w ell m a rketw ise, but n ew finan­
cing has been at a m in im u m . Practi­
cally the only issue to raise a ripple in
June w as the offering of $38,000,000 of
Jersey Central P ow er & L ig h t first
3 V2 S of 1965.
Dealers have said th a t
the dem and for these bonds w as good
but to say th e y w ere n ot a riot m a y
w ell be included in the d epartm ent of
u n d erstatem ents. There are several
issues in registration w ith the S. E. C.
but the m a rk e t w ill have to im prove
before th e y w ill be offered.
T his is w ritte n before th e nam e of
th e R epublican candidate for th e P re s­
idency is available—although we m ay
know by tonight. A nyone w ho is
nam ed, how ever, w ill favor a huge de­
fense program . W h eth er E ng lan d
holds on or not, we face a concentra­
tion of business on dom estic a rm a ­
m ent, increasing taxes, risin g loans,
and large scale G overnm ent financing.
And w h e th e r you as a b an k er like or
dislike th e course w hich th e T reasu ry
pursues, you w ill find th a t you w ill
take an im p o rtan t place in it.

26
Our Stake In China

W A R , PO LITICS, G O L D
A N D N A T IO N A L
DEFENSE
(C ontinued from page 11)
absu rd extrem es, b u t if th a t g reat
golden horde in K en tu ck y is w o rth ­
less, th e experience of th e h u m an race
since its beginning is reversed, and
black is w hite, and th e m oon is m ade
out of green cheese. T h at is a prim e
source of o u r stre n g th in th e w orld of
alarm s and w hen th is d isaster is over
it m ay enable us to tak e a triu m p h a n t
lead in re sto rin g th e com m erce and
th e peace of th e w hole w orld; and le t’s
not let anybody ever suggest a dif­
feren t idea to us.”

“L e t’s look at a n o th er c u rre n t W ash­
ington bogeym an. Jap an w ill tak e the
E a st Indies and cut us off from ru b b er
and tin. So for th a t we have to fortify
ourselves rig h t up p ast Guam and
keep our fleet w est of th e m eridian of
th e w est Pacific. Now I don’t w an t
Ja p a n to cru sh China or to tak e the
Dutch, B ritish tin and ru b b er islands,
b u t our stake in China and in th e y ear­
ly China trad e is less th a n H a rry H op­
kins in one of his m ore benevolent
m o n th s used to spend rak in g leaves.”

U. S. Hasn't a Friend On Earth
W e’ve gotten along in this w orld in
our h isto ry w ith all kinds of despotic
and dictatorial countries from N a­

poleon to th e K aiser and th e Tzar, and
m any m edieval sultans. W e don’t
like them ; we don’t w an t th em over
here; we w ill fight them and lick them
if th ey come, b u t th is ad m in istratio n
has gone hog w ild try in g to m ake th e
w orld safe for dem ocracy again, and
it has done it w ith o u t tak in g th e
trouble to load its guns. It has af­
fronted all th e conquerors by slapping
dow n th e ir ears, and have aggrieved
all th e re st by n o t giving dow n as
m uch as th ey th o u g h t th ey w ould like,
and we h av en ’t a frien d on e a rth .”

Bluffing With a Water Pistol
“The good neighbor policy is a
bunch of bunk. T he L atin-A m erican
countries m ostly detest and despise
us. Mr. R oosevelt has been bluffing
on a bobtail flush w ith a w ater pistol,
and th a t’s a dangerous business w ith
a bunch of gan g ster gunm en.”

Third Term An Insult
GENERAL

MOTORS

ACCEPTANCE

CORPORATI ON

X j T T I
is engaged primarily in facilitating
wholesale distribution and retail sales
of the following products of General
Motors Corporation and its world'
wide affiliates: Cadillac, la salle,

BUICK, OLDSMOBILE, PONTIAC,
CHEVROLET automobiles; FRIGIDAIRE
appliances for refrigeration and air
conditioning; delco lighting, power
and heating equipment; GMC trucks;
BEDFORD, VAUXHALL, OPEL, BLITZ
— foreign made automotive vehicles.
The business consists of investments in
selfdiquidating credits, widely diversi'
fied as to region and enterprise, capital
employed being in excessof $80,000,000.

GENERAL
MOTORS
INSTALMENT
P L A N

In obtaining short term accommodation,
GMAC issues one standard form of note.
This obligation it offers to banks and in'
stitutions, in convenient maturities and
denominations at current discount rates.

These notes are available, in limited amounts, upon request.
EXECUTIVE OFFICE NEW YORK ' BRANCHES IN PRINCIPAL CITIES

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Federal Reserve Bank of St. Louis

Ju ly 19JO

“The p resen t ad m in istratio n has u t­
te rly failed to tell th e tr u th to our
people, th e tru th about th e grow ing
stretch of H itler, th e idolence and
ap ath y of the Allies and our ow n de­
fenselessness. As it has bungled every
dom estic policy and failed in every
dom estic aim so it has bungled fo r­
eign policy, and above all, th e proper
p rep aratio n for defense of th is re ­
public. Yet we are now h earin g th a t
Mr. R oosevelt m u st have a th ird term
because only he can be relied upon to
p rep are us for defense and conduct
our relatio n s w ith a w orld a t w ar. It
is th e m ost im pudent im aginable in ­
su lt to th e intelligence of th e A m eri­
can people. A t p re se n t he is actually
gettin g aw ay w ith it, b u t if th e Re­
publican P a rty has th e courage and
sense to nom inate a candidate w hom
th e people can tru s t and to challenge
th is record w ith th e naked tru th , he
w ill be as th o ro u g h ly defeated and
discredited as C ham berlain an d for
exactly th e sam e reasons. T h at re a ­
son is th a t he shot craps w ith his coun­
tr y ’s destiny and rolled snake eyes.

Defense Will Cost 30 Billion More
“We have a 46 billion dollar debt,
and if w e’re going to get ready to de­
fend ourselves in th is dangerous
w orld, w e had b e tte r be told th e full
and h onest tru th . It is going to cost
us a t least 30 billion dollars m ore.
The defense m easures th a t are being
talked about in W ashington are
w holly inadequate. If we are setting
out to defend th e W estern hem isphere,
or even th a t p a rt of it to th e bulge of
South Am erica, it is cruel deceit to
let our people believe th a t th e m eas­
ures we are tak in g now w ill do onete n th p a rt of th e job.”

27

War Emergency Used For Politics
“T his w a r em ergency is being used
not p rim a rily for th e s ta rk necessities
of adequate defense b u t p rim a rily to
prom ote th e p erp e tu a tio n of th e
fo u rth N ew Deal dynasty. In m y
opinion th e co u n try can ’t stan d for
th at. T he dang ers are too close and
th e risk s are too great. The n atio n
is u n ited for n atio n al defense b u t it
still has to be m ade to u n d e rsta n d
th a t th e first step, th e first principle,
th e first necessity of n atio n al defense
is efficient ad m in istratio n opposite in ­
dustry. A nd th a t m eans th a t th e first
step in our defense in a w orld aflame
is to in stall a g o v ern m en t th a t can
really u n d e rta k e a g re a t em ergency
pro g ram and successfully c a rry it
thro u g h . T his g o v ern m en t has spen t
billions on about a dozen p rogram s
and everyone is in a collapse and
com plete and u tte r failu re.”

U. S. Only Nation Worth Plundering
“In th is b a n k ru p t w orld w e are th e
only n atio n left on e a rth th a t is really
w o rth plundering. W e are th e richest,
fa tte st pig in th e seven seas, and as I
said before, we h a v e n ’t a tru e frien d
anyw here. I t ’s ab o u t tim e we w oke
up because ev er since th e Civil W ar
w e’ve been th e w o rld ’s fat boy w ith
a bag of candy to a po in t w h ere th e
candy is about half ru n out and we

could only stan d about one m ore raid.
I believe th a t we can properly prepare
for defense w ith o u t ru in in g our econ­
omy, b u t I know if we don’t p rep are
we w ill ru in it. It is b etray in g no
m ilitary secret to talk about our
w eaknesses. All o ther nations have
u n derstood it in g reat detail for m any
years. The only people from w hom
it has been w ith h eld and k ep t a secret
is th e A m erican people.”

p a rt or all of it, I quote, ‘F o r th e
m ortorization and m echanization of
A rm y tactical u n its ’, for m odernizing
the N avy or for m ilitary or naval a ir­
craft and air fields. W h at did we
do w ith th at. W ell, he tu rn e d th e
bulk of it over to H a rry H opkins, and
it w as spent to rak e leaves till th ey
fell a p a rt.”

Hitler and Roosevelt in Power 7
Years

“But this administration has neither
sought the ways of peace nor has it
prepared the ways of war. It has
been belligerent, th re a te n in g th e
gan g ster nations again and again.”

“T his adm in istratio n has been in
pow er seven years. It started ju st
exactly w hen H itler took over G er­
m any w hich w as th en a com pletely
disarm ed and im potent nation su r­
rounded by late enem ies, so heavily
arm ed in com parison th a t th ey could
have m arched from one end of G er­
m any to th e o ther in tw o weeks.
H itler sta rte d im m ediately to rearm ,
to build th e arm ed m ilitary m achine
w ith w hich he is now terro rizin g the
w orld. In th e sam e y ear Mr. Roose­
v elt sta rte d to spend m ore m oney in
his m ad course in an o th er direction.
Now in th e first R ecovery Act in 1933
ju s t w hen H itler w as sta rtin g th ree
billion, th ree h u n d red m illion dollars
w as ap p ro p riated to activate industry,
and th e P resid en t w as specifically
au thorized in th a t act to spend any

We Have Not Sought Peace

Have Two to Three Years to Prepare
“W e can expect trouble in South
A m erica soon and p erhaps in Mexico.
It is being sta rte d rig h t now. B ut as
a guess I believe th a t if th e w o rst
happens in E urope, we shall have be­
tw een tw o and th ree years to prep are
our own defense. Can we do th a t to
an extent that would make an attack
too costly to attempt? T h a t’s the
w hole problem . I t is alm ost entirely
an in d u strial job, and A m erican in ­
d u stry has proved th a t it can do an y ­
th in g w ith in reason th a t it sta rts out
to do u n d er a g overnm ent th a t u n d e r­
stands it and encourages it and p e r­
m its it to function.”

Interest exempt from all present Federal Income Taxation

$ 355,000

Polk County, Iowa
(D ES M O IN ES)

2% Funding Bonds
D ue serially N ovem ber 1, 1947 th ro u g h 1950

Legal Investment, in our opinion, fo r Savings Banks in Nezv York
and certain other States.
These Bonds, to be issued for Funding purposes, in the opinion of counsel, will constitute valid and legally
binding obligations of Polk County, payable from ad valorem taxes to be levied against all the taxable
property therein, without limitation as to rate or amount.

Available Amounts and Maturities
$ 15,000
100,000
15,000

N ovem ber 1, 1947
N ovem ber 1, 1948
N ovem ber 1, 1949

P ric e to Y ie ld 1.40%
P ric e to Y ield 1.50%
P ric e to Y ield 1.60%

T h e se B o n d s are offered w h en , as and i f is su e d and rec e iv ed b y us a n d s u b je c t to final ap p ro va l o f le g a lity b y M e ssrs. C hapm an and C utler
o f C hicago, a c o p y o f w hose opinion w ill be fu r n ish e d upon d e liv ery .

HALSEY, S T U A R T & CO. I n c .
C H IC A G O , 2 0 1 S o u th L a Salle S tr e e t
A N D

O T H E R

•
P R I N C I P A L

N E W Y O R K , 3 5 W all S tre e t
C I T I E S

D a te d J u n e 1, 1940. I n t e r e s t p a y a b le N o v e m b e r 1, 1940 a n d s e m i- a n n u a lly M ay 1 a n d N o v e m b e r 1 th e r e a f te r .
B o th p r in c ip a l a n d in t e r e s t
p a y a b le a t th e office of th e C o u n ty T r e a s u r e r , D es M o in es, I o w a . C o u p o n B o n d s in th e d e n o m in a tio n of $ 1 ,0 0 0 . T h e in f o r m a tio n c o n ta in e d
h e r e in h a s b e e n c a re fu lly co m p ile d fro m s o u rc e s c o n s id e re d r e lia b le a n d w h ile n o t g u a r a n t e e d a s to co m p le te n e s s o r a c c u ra c y , w e b eliev e it to
b e c o r r e c t a s of th is d a te .
J u n e 25, 1940

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Ju ly 1940

28

IO W A

COMMERCIAL
INVESTM ENT
TRUST

Investm ent Bankers
Association

IN C O R P O R A T E D
W A L T E R E. V IE T H
P r e s id e n t
D a v e n p o rt

C

o m m e r c ia l

I

C. I. T. offers its stand­
ard notes for short term
accommodation in varying
am ounts from $1,000 to
$100,000, in maturities from
60 to 270 days and at cur­
rent discount rates. These
notes are payable at any of
our 285 depositary banks
located in principal cities
throughout the country.
L a te st p ublished fin a n c ia l
statement and list o f depositary
banks w ill be mailed upon request.
ADDRESS

Treasurer,
Commercial Investment
Trust Incorporated
IParkAve., New York, N. Y.
N orthw estern B anker


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Federal Reserve Bank of St. Louis

Ju ly 19 k0

RO Y W . L E R IC H E
S e c r e ta r y
D es M o in es

Investment Bankers Plan Public
Information Program

n v e s t m e n t

T rust
Incorporated, with
capital and surplus in excess
of $56,000,000, provides a
nation-wide sales finance
service through subsidiary
companies with a network
of branch offices throughout
the United States. This
service, in the main, consists
of p u r c h a s in g self-liqui­
dating accounts, and ex­
tends to automobile dealers,
household appliance dealers,
and to m anufacturers and
dealers in many lines of in­
dustrial, commercial and
professional equipment, in­
cluding the heavy goods in­
dustries.

Organized 1935

H E In v estm en t B ankers Associa­ statem en ts m ade on behalf of th e asso­
tio n of A m erica is going to do ciation and all recom m endations to be
subm itted to public au th o rities on be­
things.
half of or by th e association.
T hey are going to specifically inform
T his w ork is all being coordinated
th e public about th e functions of in ­
v estm en t b anking and th e real service u n d er th e public inform ation com m it­
w hich in v estm en t b an k ers ren d er to tee of th e In v estm en t B ankers Assoin d u stry and to th e nation.
The resolution covering th e plan of
procedure w hich w as passed by th e
board of governors states that:
1.
A public inform ation program be
institu ted:
(a)
To uphold and obtain support
for th e A m erican system of free e n te r­
prise;
(b)
To co n trib u te to th e general
public w elfare and th e creation of em ­
ploym ent by prom oting th e flow of p ri­
vate capital into industry;
(c)
To affirm and prom ote th e func­
tio n of inv estm en t b an king as an in ­
dispensable integ ral p a rt of th e A m eri­
can system of free en terprise.
2.
Such public inform ation program
sh all be non-political and non-partisan.
3.
T he public inform ation program
shall be financed by v o lu n tary co n tri­
butions.
4.
T he presid en t of th e association
shall appoint a special com m ittee
em m ett f. connely
w hich shall have full au th o rity to or­
President
ganize and carry out th e w ork of ob­
Investm ent Bankers A ssociation
ta in in g such v o lu n tary contributions.
5.
F u ll and com plete a u th o rity and
responsibility for th e developm ent and ciation, w hich is com posed of th e fol­
carry in g out of th e public inform ation low ing gentlem en:
E d w ard H. H illiard, J. J. B. H illiard
program shall be vested in a public in ­
& Son, Louisville; Jo h n O. Stubbs,
form ation com m ittee consisting of the
president, w ho shall be th e chairm an, W hiting, W eeks & Stubbs, Inc., Bos­
ton; Jo h n K. S tark w eath er, S ta rk ­
and n ot less th a n th re e n o r m ore th a n
five o th er m em bers to be appointed by w eath er & Company, N ew York; Jay
N. W hipple, Bacon, W hipple & Com­
the president.
6.
T he public inform ation com m it­ pany, Chicago; Jo h n S. Fleek, H ayden,
tee shall also be responsible for th e co­ M iller and Company, Cleveland.
Also, th ere are tw o o th er com m it­
ordin ation of all of th e association’s
public inform ation activities of every tees, one of w hich is th e education
kind, including all w ritte n or spoken com m ittee for th e C entral States

T

29
G roup, w hich includes Illinois, In d i­
ana, Iow a, N eb rask a and W isconsin,
an d is com posed of th e follow ing men:
N ew ton P. F ry e, chairm an, C entral
R epublic Com pany, Chicago; A ndrew
M. B aird, A. G. B ecker & Com pany,
Inc., Chicago; O. P. D ecker, A m erican
N ational B an k & T ru s t Com pany, Chi­
cago; P h il S. D ickinson, Nichols, T e rry
& D ickinson, Inc., Chicago; W infield
C. Jackley, Jack ley & Com pany, Des
M oines; Reno H. P etersen , The Illinois
C om pany of Chicago, Chicago.
T he n atio n al education com m ittee,
w h ich re p re se n ts th e e n tire country, is
as follows:
Ja y N. W hipple, chairm an, Bacon,
W hipple & Company, Chicago; Thom as
B eckett, B eckett, G ilbert & Com pany,
Inc., Dallas; B enjam in R. B rindley, C.
F. Childs and Com pany, Inc., San
F rancisco; S tanley E. Clark, E stab ro o k
an d Com pany, Boston; T heodore C.
Coleman, B anks, H u n tle y & Com pany,
Los Angeles; C harles B. Engle, Engle,
A dam s & Com pany, D enver; H erm an
A. F eldm ann, M ackubin, Legg & Com­
pany, B altim ore; N ew ton P. F ry e, Cen­
tra l R epublic Com pany, Chicago; R u s­
sell E. G ardner, Jr., R einboldt & G ard­
ner, St. Louis; F re d ric P. Griffin, Seat­
tle T ru s t & Savings B ank, Seattle; W.
F e n to n Johnson, Sm ith, B arn ey &
Com pany, N ew York; H a rry W. K err,
Crouse & Com pany, D etroit; Owen
K raft, B ly th & Com pany, Inc., P itts ­
burgh; Jo sep h J. Levin, A. G. B ecker &
Com pany, Inc., Chicago; G alen Miller,
H ayden, M iller a n d Com pany, Cleve­
land; Roy C. N elson, N elson, B row n­
ing an d Com pany, C incinnati; George
H. Nusloch, N usloch, B audean &
Sm ith, N ew Orleans; R oland Palm edo,
L eh m an B ro th ers, N ew York; Clyde L.
Paul, P au l & Com pany, Inc., P h ilad el­
phia; R ay W. S tephenson, M errill,
L ynch, E. A. P ierce & C assatt, New
York; J. A. W alker, D om inion S ecuri­
ties Corp., Ltd., Toronto; R obert S.
W eeks, W hiting, W eeks & Stubbs, Inc.,
Boston; A dolph E. W eltner, A. E.
W eltn er & Com pany, K ansas City;
R obert L. Joh n , T h rall W est Com pany,
M inneapolis.
In th e booklet alread y issued by th e
public in fo rm atio n com m ittee, B ron­
son B atchelor, public relatio n s advisor,
says:
“One of th e th in g s th a t has im-

In v estm en t B ankers A ssociation ad­
vises th a t plans are going forw ard for
a bigger and b e tte r field day to be held
in Des Moines, Septem ber 11th, blitz­
k rieg or no blitzkrieg.

pressed me m ost is th e rem arkable
sp irit th a t now seem s to perm eate the
I. B. A. u n d er th e energetic adm inis­
tra tio n of P resid en t Connely. You’ve
closed ran k s and served notice th a t all
fu rth e r attem p ts to u nderm ine th e in ­
v estm en t ban k in g business are to be
vigorously resisted.”
If th is sp irit continues th ere is no
reason w hy in v estm en t b anking in the
U nited States should n ot again occupy
th e place th a t it rig h tly deserves in
helping to carry on th e economic life
of Am erica.

T here are several innovations plan ­
ned, an d it is understood th ere is a
possibility th a t everyone attending
w ill receive a “L ei”—according to
W alter V ieth, recen tly re tu rn e d from
H aw aii.
E rlin g L arson, form erly of Larson,
H opkirk & Company, is now associ­
ated w ith th e Polk-Peterson C orpora­
tion of Des Moines, as m anager of
th e ir D avenport office.

News Notes
The field day com m ittee of th e Iowa

F e der a 1 D i s c o u n t
Corporation
Dubuque, Iowa

A utom obile Finance
T im e P aym en t Plans for
A u tom obile P u r c h a s e r s
m u m

SMALL LOANS
m *

Iowa

■

BRANCHES IN
Minnesota W isconsin

Capital, Surplus and Undivided Profits
Exceed One Million Dollars
■ ■ ■

Short Term

Collateral Frust ^otes
■

m

m

Information on Request

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30

THE M IN N ESO TA
C O N V E N T IO N
(C ontinued from page 12)
for th e w ell p lanned and executed p ro ­
gram .
W H E R E A S, th e re continues to be
agitatio n for en actm en ts by th e Con­
gress of th e U nited States of laws
affecting th e v ery n a tu re of our b a n k ­
ing system , especially as evidenced by
th e recen t q u estio n n aire sen t out by
the W agner C om m ittee of th e Senate,
NOAV, THEREFORE, BE IT R E­
SOLVED that this Association take a
firm stand for the perpetuation and
maintenance of the present dual char­
tered system of banking which has
proved its effectiveness in the indus­
trial and agricultural growth of our
country.
W H E R E A S, those in govern m en tal
au th o rity have seen fit to call to g eth er

certain in d u strial leaders of th e n a­
tion for consultation reg ard in g th e
p resen t w orld w ide chaotic condition
w ith th e avow ed purpose of d eterm in ­
ing a policy of preparedness, both m ili­
ta ry and economic,
NOW, T H E R E F O R E , BE IT R E ­
SOLVED by th is A ssociation th a t we
approve this action, and th a t we urge
upon those in a u th o rity th a t those in ­
d u strial leaders be given necessary
a u th o rity to m ake th e ir know ledge and
experience effective.
W H ER EA S, du rin g a period of nin e­
teen m onths in w hich th e banks have
h ad an o p p o rtu n ity to observe th e
actual operation of the W age and
H o u r Law, it has become a p p aren t
th a t th e law has actually resu lted in
m any cases to lessen o pportunities and
re m u n eratio n s to th e em ployees for
a n u m b er of obvious reasons,
NOW, T H E R E FO R E , BE IT R E ­
SOLVED th a t we u rge our Congress

V . W . B r e w e r
M

u n ic ip a l

B

C o .

o n u s

Q u o tin g f r o m th e N ew Y o r k H era ld T rib u n e o f M ay 9 t li, 1 9 4 0 :
“ B e c a u s e o f th e L e v e l D e b t P r o g r a m a n d t h e s te a d y d e b t r e t ir e ­
m e n ts w h ic h h a v e b e e n in p r o g r e s s f o r m a n y y e a r s , t h e c r e d it o f
S o u th D a k o t a is r a p id ly b e c o m in g e n v ia b le .”

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E. R. HALEY, Vice President

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L. K. W ADSW ORTH, Secretary

to revise such sections of th e W age
and H our Law affecting banking
w hich w ill re su lt in a m ore equable
condition for both em ployee and em ­
ployer, w hich w ill en ure to th e bene­
fit of the general public.
ABA officers for th e state, elected
a t a m eeting of ABA m em bers, in ­
cluded th e follow ing vice presidents:
national b ank division, O. H. Odin,
M inneapolis; savings, A lbert H. Cros­
by, M inneapolis; state bank, Jesse
Olson, Redwood Falls, tru st, A. E. W il­
son, M inneapolis. N am ed to the exec­
utive council for one y ear w as Olof
G andrud; for th ree years, H. C. Matzke, D uluth. O. G. Jones, Red W ing,
w as placed on th e nom inating com m it­
tee, w ith J. H. W elle, Melrose, as al­
tern ate.
Those w ho w ill serve on th e coun­
cil of ad m in istratio n of th e M innesota
B ankers A ssociation, w ith th e ir re s­
pective term s of office, are as follows:
1941—
A. B. L athro p, P ast P resident;
E dw in E rickson, A drian S tate Bank;
L. O. Olson, M idland N ational B ank &
T ru st Comany, M inneapolis; J. T.
Peterson, State B ank of Le Sueur;
N. V. T orgerson, F arm ers State Bank,
Adams.
1942—
J. A. Allen, F irs t N ational
Bank, Milaca; H. B. H um ason, A m er­
ican N ational Bank, St. Paul; George
J. Meinz, A m erican N ational Bank,
St. Cloud.
1943—
D. G. Johnson, F irs t N ational
Bank, Hawley; S. R. K irby, Jr., F irst
N ational Bank, V irginia; T. G. O’Con­
nor, O’Connor B rothers S tate Bank,
Renville.

Changing Needs
A m an ’s needs, problem s and am bi­
tions often change m aterially as he
grow s older. A saving plan w hich w as
adequate for his y o u th m ay no longer
fill th e bill. A nd th a t is w hy the
th in k in g life in surance policyholder
periodically review s his policies.
Your fam ily and financial circum ­
stances m ay be g reatly different th a n
th ey w ere a few years back. New ob­
ligations m ay have appeared, and old
ones disappeared. Life in su ran ce is a
highly m alleable in stru m en t, and it
can be adapted to fit alm ost any m an ’s
needs.
So don’t th in k th e job is done w hen
y o u ’ve bought a policy and stuck it
away. P erh ap s your policies fit you as
w ell now as w hen you bought th em —
p erh ap s th ey don’t. Look them over,
in com pany w ith yo ur insurance
agent, and find out.

Pay the Price
He: “Can you m ake th e cakes th a t
m o th er used to m ake?”
She: “Yes, if you can p u t up w ith
th e indigestion fa th e r used to have.”

31

N EBRA SKA
IN V E S T M E N T

BAN KERS

A S S O C IA T IO N

HOW ARD BUFFET
President
Omaha

C E C IL W. SLOCUM

ECEN TLY , at an O m aha Ju n io r
C ham ber of Com m erce picnic, Cecil
W. Slocum, in v estm en t b a n k e r w ho is
secretary of th e N ebraska In v e stm e n t
B an k ers A ssociation, and Ju n io r
C ham ber presid en t, challenged W il­
liam Bloom, an o th e r J u n io r C ham ber
m em ber, to a slipper-kicking contest
afte r w atch in g a sim ilar contest be­
tw een w ives of J u n io r C ham ber m em ­
bers.
Slocum took a p u n tin g stance, aim ed
a t a spot 50 y ard s dow n th e field and
let fly. H e tripped, w e n t down. He
w as a t hom e th e n ex t day w ith an in ­
ju re d leg m uscle.

R

E sta te of Frank B. Johnson, Omaha
p rin tin g executive w ho died A pril 6,
1939, am o u n ted to $402,793. Claims of
$84,172 left a n et of $318,621.
T he estate included $123,040 in cash,
bonds w o rth $19,030, stocks fo rth $225,997, real estate w o rth $11,022. Stocks
included 200 sh ares of O m aha P rin tin g
C om pany and 450 sh ares of A rm our &
Com pany of D elaw are.
Chester E. Hunter, 70, m an ag er of
L am son Bros. & Com pany, at Omaha
for 33 years, died recen tly at an Omaha
hospital a fte r an illness of four days.
He w en t to O m aha from Illinois to
open th e Om aha office of th e b ro k e r­
age concern. He w as a m em ber of th e
M asonic Lodge and a S hriner. H is
w ife and one d au g h ter survive.
S tockholders of th e W aubonsie
B ridge C om pany of N ebraska City,
N ebraska, voted recen tly by a large
m ajo rity to accept th e city of N eb ras­
ka C ity’s offer to b u y th e span for
$800,000.
T he vote w as 25,244 sh ares of com ­
m on stock for th e proposal; 752%
against.
T he deal th e n aw aited financing by
th re e Chicago bond houses.
A n in v en to ry of th e Sarah H. Joslyn estate, filed recen tly in county
co u rt a t Omaha, listed holdings

Secretary

am o unting to $2,648,462 exclusive of
m ortgages, real estate, household
goods and personal effects in “Joslyn
C astle.”
The filing w as m ade by th e United
States National Bank of Omaha, ex­
ecutor. Cash on deposit a t th e U nited
States and Om aha N ational B anks
am ounted to $244,724, th e in v en to ry
showed.
L argest inv estm en ts w ere in bonds,
w ith a to tal of $2,371,859, including
$1,138,610 invested in city of Omaha,
school d istrict and Douglas county is­
sues. Only one bond w as listed as
w orthless, a $500 bond issued by the
Om aha Lodge of E lks, due in 1932.
T he holdings also included: Omaha
p a rk bonds, $21,425; Omaha gas plant,
$31,020; stre e t im provem ent, $68,345;
Om aha land appro p riatio n bonds, $17,100. U nited States tre a su ry notes and
bonds w ere listed a t $520,000 par, $546,514 c u rre n t value.
Stocks am ounted to only $31,879, in ­
cluding 882 shares of A m erican Gas
and E lectric com m on ($29,767); seven
of A m erican-Sum atra Tobacco C orpor­
ation, a h u n d red sh ares of Old M er­
ch ants N ational B ank of Omaha stock.
Six stocks w ere listed as valueless,
including 25,000 shares of Sylvanite
Deep M ining and T unnel Company,
5,000 shares of Om aha A uditorium
Company.
H er holdings in Om aha school bonds
totaled $531,590 (c u rre n t value).
N eb rask a’s local subdivisions of
g o v ernm ent reduced th e ir debts n e a r­
ly 40 p er cent in th e last 12 years and
can be v irtu a lly out of debt in an o th er
decade if th e pay-as-you-go policy con­
tinues, according to th e N ebraska
F ed eratio n of T ax p ay ers’ Leagues.
A com pilation of all bonded debt
owed by cities, counties and school
d istricts show ed th e total had been re ­
duced from $113,509,462 in 1928 to
$68,280,803 in 1940.
The organization called special a t­
ten tio n to th e “enviable” record of
Douglas county (O m aha). The coun­

ty ’s debt in th e 12 years w as cut
from $47,445,367 to $22,741,710.
Thomas R. Huston, form er vice p res­
ident of George & Company, Omaha
realtors, recen tly announced his as­
sociation w ith W estern Securities Com­
pany of Omaha. He has been in the
real estate business at Om aha 26
years.
Two O m ahans recen tly w ere nam ed
m em bers of a com m ittee of th e U nited
States Savings and L oan League by
George W. W est of A tlanta, Georgia,
national president. Leslie E. Martin,
presid en t of th e N ebraska Savings and
Loan A ssociation, w as nam ed to the
com m ittee on public housing, and
James J. Fitzgerald, secretary-treas­
u re r of th e Com m ercial Savings and
Loan A ssociation, to th e com m ittee on
construction, loan policies and proced­
ure.
Ak-Sar-Ben announced th a t an o th er
sizable reduction in ou tstan d in g bond­
ed indebtedness on th e Ak-Sar-Ben
bridge connecting Om aha and Council
Bluffs w as planned Ju ly 1, th e sem i­
an n u al in te re st date.
Bridge affairs now are adm inistered
by th e Ak-Sar-Ben Bridge Corporation,
a nonprofit group. P resid en t A. A.

L

a

m

B

r

s o
o

s

.

&Co1874
.

E s t a b l ish e d

141 W. Jackson Blvd., Chicago
50 Broadway, New York
Our branch offices are
equipped to render com­
p lete brokerage service
in the handling of grain
(cash and futures),
stocks, bonds, cotton and
provisions. Private wires
direct to all markets.
BRANCH OFFICES
N e w Y ork, N . Y .
B uffalo, N . Y.
C edar R a p id s, Iow a
D a ven p o rt, Iow a
D e s M oin es, Io w a
D ubuqu e, Io w a
F o rt D odge, Io w a
Inwa F alls, Iow a
M arsh alltow n , Iow a
M ason C ity , Io w a
S iou x C ity , Iow a
S to rm L a k e, Io w a
W a terlo o , Iow a
F ran kfort, Ind.
L a F a y e tte , Ind.

M in n eapolis, M inn.
S t. Pau l, M inn.
K an sas C ity , M o.
S t . L ou is, M o.
O m aha, N eb.
L in coln , N eb.
B loom in gton , 111.
D e K a lb , 111.
G ilm an, 111.
G alesbu rg, 111.
L a S a lle, III.
P eoria, 111.
Q uin cy, III.
M uskogee, O kla.

M EM BERS OF LEA D IN G SECURITY
a n d COM M O DITY EXCH ANGES

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n

July 1940

32
Lowman of the bridge g roup said it
w as hoped $100,000 in bonds could be
re tire d J u ly 1, w hich w ould cu t in ­
debtedness to $2,050,000. O riginal p u r­
chase price of th e bridge w as $2,350,000
and in th e 18 m o n th s p rio r to J a n u a ry
1, 1940, Ak-Sar-Ben not only re tire d
$200,000 of th e bonds b u t also paid in
full for a m odernizing p rogram w hich
cost $265,000.

sociations to develop “a sp irit of th rift
to w ard ow nership of hom es.” Mem­
b ers of th e association expressed op­
position to legislation pending in con­
gress to give th e federal governm ent
m ore control over building and loan
associations and to reduce state con­
trol.

G O V ER N M EN T C O M ­
PETITION

M em bers of th e N ebraska League
of Savings and L oan A ssociations
elected th e ir first new p resid en t in 19
y ears a t th e ir re c e n t O m aha conven­
tion. T hey nam ed J. B. Douglas of
Tecum seh, N ebraska, to th a t office
after T. L. Mathews, 92-year-old F re ­
m ont re tire d b a n k e r and b uilding and
loan executive, h ad served 19 term s.
O ther new officers are: E. C. Boehm er, Lincoln, H arold W eise, N orth
P latte, and C. A. D urland, N orfolk,
vice presidents; Leslie E. M artin, Oma­
ha, re-elected secretary -treasu rer.
R esolutions expressed confidence in
th e ab ility of building and loan as­

CARSON
EINAR
W ILLIAM

F.

(C ontinued from page 14)
Tim es have changed. Tim es are
changing v ery rap id ly and a new era
is upon us. T hus shall we profit by
th e lessons of th e p ast and w ith some
in g en u ity accept th e challenge of the
fu tu re or pass into the halls of histo ry
as those w ho have lived. I t is high
tim e th a t th e b an k ers of th is district,
state and nation eith er tak e th e tim e
to do th e ir p a rt actively in th e b u si­
ness of ru n n in g th e governm ent, or
find m en capable of han d lin g such
offices and elect them , be th ey R epub­

JA M IESO N

A.
G.

GOVERNMENT
M U N IC IPA L

BERG

C O R PO RA T IO N
BONDS

KAHLERT

JAMIESON & COMPANY
M e m b e rs o f th e N ew Y o rk S to c k E x c h a n g e
am i o th e r p rin c ip a l e x ch a n g e s
CHARLES
ST. P A U L

C.

R IEG ER
M IN N E A P O L IS

MANAGER

Bond

d e p a r t m e n t

BONDS

lican or D em ocrat. D on’t say, “L et
George do it.” H e’s done enough al­
ready. See th a t such m en sit in our
legislative bodies w ho still believe in
the Bill of R ights, so th a t w hen you
m ake a m ortgage it can ’t be all w ashed
out by dispensations to th e m ortgagor.
As it is h ap p ening in E u rope today,
so w ell m ay it h appen h ere tom orrow
unless we tak e an active p a rt in th e
guidance of our ban k in g craft before
we find a h ard m aster guiding it w ith ­
out our assistance.

L E G A L DEPARTM ENT
(C ontinued from page 20)
closure th ere w as certain grow ing
stock on th e land. Did title to it pass
to Cable a t th e sale?
Yes. In cases of mortgages, the
general rule is that growing nursery
stock w ill pass as realty to the pur­
chaser at a foreclosure sale of the
land, in the absence of a reservation
or competent evidence of the intention
of the parties that it should not he in­
cluded as part of the security. Iowa
and Colorado are among the states in
which decisions to that effect have
been rendered.
The Commonwealth of K entucky
im posed on its citizens an an n u al ad
valorem tax on th e ir deposits in banks
outside of th e state a t th e rate of fifty
cents per h u n d red dollars and a t th e
sam e tim e im posed on th e ir deposits
in banks located w ith in th e state a
sim ilar ad valorem tax a t th e ra te of
ten cents p er h u n d red dollars. P ay ­
m en t of th e ta x w as resisted by a
citizen of th e state on th e ground th a t
it w as re p u g n a n t to th e privileges
and im m unities clause of th e F o u r­
te en th A m endm ent to th e C onstitu­
tion of th e U nited States. Should he
be su stained in th is resistance?
No. The deposit of money in banks
is not a privilege of national citizen­
ship making it improper, under the
privileges and im m unities clause of
the Federal Constitution, for a state
legislature to impose a higher tax on
deposits outside the state than on
those w ithin the state.

Public Utility
Industrial
Railroad
Municipal

A.C.ALLYN a*dCOM PANY

Occasionally th e question w ill arise,
in connection w ith collection w o rk or
tru s t w ork, of w h e th e r an in fa n t is
subject to, or m ay be m ade th e subject
of, th e b an k ru p tcy laws. W h at w ould
be yo u r ru lin g in th is regard?

I n c o r p o r a te d
100 W e s t M onroe S tr e e t, C h ic a g o
N ew Y ork
R e p r e s e n t a t iv e s :

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

Ju ly 194-0

O m aha
D e s M oin es

B o sto n
C edar R a p id s

As regards bankruptcy proceedings
in cases of infant debtors, there are au­
thorities to the general effect that
since an infant may ratify or repudiate
his debts on becoming of age, the

33
Bankruptcy Act lias no application.
Obviously, however, this reasoning
does not apply where the debt is one
which the infant cannot repudiate but
is binding on him and his property.
In such last mentioned cases it has
been held that the infant is subject to
the Act.
Kuan borrowed from his b an k an
am o u n t in excess of th e lim it allow ed
by th e sta tu te reg u latin g th e am o u n t
of loans by a bank. He failed to pay
th e loan w h en it cam e due. T he b an k
sued. R uan defended on th e g round
th a t he should not be req u ired to pay
inasm uch as th e loan w as in excess of
th e am o u n t allow ed by law. The loan
w as unsecured. Is such a defense
good?
No. Tt is settled by a uniform line
of authority, dealing both with na­
tional and state banks, that a person
who has borrowed m oney from a bank
in an amount in excess of the lim it
allowed by the statute regulating the
amount of loans by a bank cannot in ­
terpose the defense, w hen sued by the
bank to recover the loan, that such
loan was prohibited by such statute.

A . B„ A . Convention
U nited States S enator C arter Glass
w ill be honored at th e 66th a n n u al con­
ven tio n of th e A m erican B an k ers As­
sociation to be held a t A tlantic City,
N ew Jersey, S eptem ber 23rd-26th, it is
an nounced by R o b ert M. H anes, p re si­
den t of th e association. Mr. H anes is
p resid en t of th e W achovia B ank and
T ru s t Com pany, W inston-Salem , N o rth
Carolina. S enator Glass w ill be h o n ­
ored for his service to A m erican b a n k ­
ing a t th e second general session of th e
convention scheduled for T hursday,
Septem ber 26th.
Hon. Clyde R. Hoey, govern o r of
N o rth Carolina, w ill ad dress th e first
gen eral session of th e convention on
W ednesday, S eptem ber 25th.
O ther sp eakers a t th e g en eral ses­
sions w ill include Mr. H anes an d E. S.
W oosley, vice p resid en t of th e L ouis­
ville T ru s t Com pany, Louisville, K en­
tucky.
T he enlarged services of th e A. B. A.
w ill be reflected in th e convention p ro ­
gram , w ith em phasis on th e educa­
tio n al note. The fo u r general divi­
sions of th e association w ill hold th e ir
an n u al m eetings th e first day, Monday,
S eptem ber 23rd. All of th e follow ing
day, T uesday, S eptem ber 24th, an d th e
tw o follow ing afternoons w ill be de­
voted to ro u n d table conferences and
panel discussions.
T he T uesday m o rn in g p ro g ram w ill
include ro u n d tables on “T he Influ­
ence and V alue of B ank Staff Con-

tacts,” “How to Survey Y our T rade
A rea,” and “L iquidity and M arketabil­
ity of L oans Made to F a rm e rs.”
T uesday afternoon w ill be devoted
to a panel tre a tm e n t of “Real E state
L oans,” conducted along th e lines of
th e “Info rm atio n P lease” type of pro­
gram . On W ednesday m orning, Sep­
tem ber 25th, th e re w ill be a series of
ro u n d table conferences on b an k oper­
atin g problem s and on T h u rsd ay a fte r­
noon th e popular type of quizz p ro ­
gram w ill be applied to th e subject of
“C onsum er C redit.”
T he fo rtieth a n n iv ersary of the
A m erican In stitu te of B anking w ill be

celebrated a t the first general session,
W ednesday, Septem ber 25th. H arry
R. Sm ith, re tirin g presid en t of th e
A. I. B., w ill introduce th e p ast p resi­
dents of th e A. I. B. and conduct th e
installatio n of W illiam A. Irw in as
national educational director of th e
in stitu te.
The new ly elected officers of th e
A. B. A. w ill be installed a t in au g u ra­
tion cerem onies to be held T hursday
evening, Septem ber 26th. The U niver­
sity of P enn sy lv an ia chorus w ill sing
at th e inauguration. Jo h n Charles
Thom as, noted A m erican baritone, w ill
be th e guest star.

-C H IC A G O
the World’s
Third Largest
Banking Center

C o n t i n e n t a l I l l in o is
N a t io n a l B a n k
a n d T r u st Co m p a n y
of

C h ic a g o

Member Federal Deposit Insurance Corporation

N orthwestern Banker

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

July 19W

34

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Federal Reserve Bank of St. Louis

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35

NEBRASKA
NEWS
C. C. N E U M A N N
P r e s id e n t
O a k la n d

WM. B. H U G H E S
S e c r e ta r y
O m aha

since th e in stitu tio n sta rte d operating
in the com m unity m ore th an nine
y ears ago, P resid en t J. J. DeLay an ­
nounced.
In the past year the ban k has m ate­
rially increased its deposits and its
cash condition today is stro n g er th a n
ever, th e presid en t announced. “T his
grow th has been m ade possible by the
h earty cooperation and patronage of
th e people of N orfolk and su rro u n d in g
territo ry , w hich th e directors deeply
appreciate,” Mr. DeLay stated.

Attends Graduate School
Golden Jubilee

Cashier Resigns

M ore th a n tw enty-five h u n d re d p e r­
sons g ath ered recen tly in th e Tekam ah ball p a rk w h ere th e y w ere guests
of th e F irs t N ational B ank a t a p a rty
celebrating its fiftieth a n n iv e rsa ry as
a national bank. It w as by far th e
larg est p a rty ever held in th is p a rt of
N ebraska. The w e a th e r w as ideal and
th e huge crow d th o ro u g h ly enjoyed
th e event.
The pro g ram w as p resen ted from a
platfo rm in fro n t of th e gran d stan d .
R obert I. Stout, p resid en t of th e bank,
w elcom ed its p atro n s and friends, and
in his re m a rk s stated th a t eleven of
th e original depositors w h en th e b an k
w as nationalized fifty y ears ago w ere
still w ith them , and p ractically all
w ere on th e g rounds for th is a n n iv e r­
sary party . T hey w ere A rizona L a­
dies Aid Society, M. W. Blue, Charles
Bucy, J. S. E ckley, C harles A. Goll, C.
V. H ayw ood, Cora J. Lydick, M ackey
C h ap ter (M asonic o rd er), M. D. Willert, A lbert Pearce and F re d W ixer.
D eposits in th e b an k fifty y ears ago in
July, 1890, w ere $57,244; fifty y ears
later, th e M arch, 1940, sta te m e n t of th e
sam e b an k show ed deposits to talin g
$1,107,378.67.
Clyde N ew m an, O akland b anker, and
p resid en t of th e N ebraska B ankers
A ssociation, expressed g reetin g s for
th e b an k ers over th e state.

M. L ynn Ju d y has resigned his posi­
tion as cashier of the Citizens N ational
B ank, A shland, and is tak in g a sh o rt
vacation. Mr. Ju d y w as cashier of this
b an k for six years, from Ju n e 11, 1934,
to Ju n e 10, 1940. P revious to June,
1934, he w as em ployed for 15 m onths
at th e old N ational B ank of A shland,
g ettin g th e affairs of th a t in stitu tio n in
order before th e new organization, th e
Citizens N ational Bank, took over.

Pioneer Dies
C. J. O’Connor, 84, fo rm er D akota
county official and H om er b anker, died
recen tly at his hom e in M onterey
P ark , California. Mr. O’Connor m oved
to C alifornia 18 y e a rs ago.
B orn S eptem ber 22, 1855, in New
York City, Mr. O’C onnor cam e w ith his
paren ts, C aptain and Mrs. C ornelius
O’Connor, to N ebraska in 1857. The
O’Connor fam ily settled n e a r Jackson
and later m oved to a farm n e a r H o­
m er. Mr. O’Connor, w hen a young
m an, opened a g eneral store in H om er
and la te r organized and operated th e
H om er S tate B ank. He serv ed as
county tre a s u re r for several y ears and
also o p erated th e g o v ern m en t store a t
th e W innebago agency.

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

County Meeting
T he Douglas, Sarpy, W ashington
and B u rt C ounty B ankers A ssociation
held a reg u lar m eeting recen tly at
Valley. A bout sixty attended and en ­
joyed a chicken d in n er before th e
m eeting. George Wood, executive vice
p resid en t of th e F irs t N ational B ank
of Council Bluffs, Iowa, w as th e speak­
er of th e evening.
E lection of officers w as held and
Carl Brow n of th e B anking H ouse of
A. W. Clarke, at Papillion, w as elected
president; R. K. Hancock, cashier of
th e B u rt County S tate B ank of Tekam ah, vice president; an d R obert H.
H all, executive vice presid en t of the
N o rth Side B ank of Omaha w as re ­
elected secretary -treasu rer. Two new
m em bers of th e executive com m ittee
are Geo. Schoettger of A rlington and
H. C. L arson of D ecatur.

Time Saver
The F irs t N ational B ank of T ekam ah
has recen tly installed th e new est type
of postage m eter m achine. T he new
m achine elim inates th e use of ad h e­
sive postage stam ps and is th e first of
its type to be installed in Tekam ah.
The m achine is, in effect, a m in iatu re
post office in th a t it seals th e envelope,
p rin ts th e postage in any denom ina­
tion and post m ark s and cancels th e
letter.

Another Dividend
D irectors of th e D eLay N ational
B ank of N orfolk have voted to pay
stockholders an o th er sem i-annual divi­
dend, m aking th e to tal 115 p er cent,

W.
H. Pierce, p resident of F irst N a­
tional Bank, Shelby, left recently for
R utgers U niversity at New B runsw ick,
New Jersey, w here he en tered th e
G raduate School of B anking conducted
by th e A m erican B ankers A ssociation
to begin advanced study of recent de­
velopm ents in banking.
An advanced school for ban k officers,
The G raduate School of B anking, is
attended by 600 bank officers from all
sections of the country. E ach year
approxim ately 200 new stu d en ts e n te r
th e school and 200 bank officers are
graduated.

Merger
T hrough an arran g em en t com pleted
recently, the E dm ond S tate B ank of
E dm ond has suspended business, in
favor of a m erger w ith The E xchange
B ank of Lenora, w hich has tak en over
its assets, liabilities and general b an k ­
ing business. T he E dm ond bank,
w hich w as founded in 1902, and is be­
ing liquidated because of a decision of
its board of directors to suspend opera­
tions because of th e im possibility of
operating a sm all b an k profitably u n ­
der p resen t day conditions.

Elected Cashier
C harles S. Stone of H astings is th e
new ly elected cashier of th e H arv ard
State B ank a t H arvard. F. E. T u rn e r
is th e new president.
Mr. Stone is a form er banker, h av ­
ing operated his own banks in Ne­
b rask a and Colorado before com ing to
H astings in 1923 as a b ank exam iner.
He has also served as receiver and
m ore recently he has been engaged in
a com bined collecting and real estate
business, w ith offices in th e old E x ­
change N ational B ank B uilding in
H astings.
He w ill continue to reside in H ast­
ings, com m uting betw een th e tw o
tow ns.

New In Humboldt
Jo h n W ebber, a young m an from
K ansas City, M issouri, is a new em ­
ploye a t th e H om e State B ank a n d

36

• NEBRASKA
has assum ed his d uties th e re as book­
keeper.
Mr. W ebber atten d ed th e M unicipal
U niv ersity a t Omaha, and for th e p ast
tw o y ears has been em ployed in th e
Comm erce T ru st Com pany B ank at
K ansas City.
Dale Agee, a ssista n t paying teller of
the F irs t N ational b ank of Omaha,
recen tly w as elected p resid en t of a
new ly-organized Young B uilders club,
form ed by the dow ntow n Om aha Kiw anis club.
Mr. and Mrs. T. L . Davis, Mr. and

NEWS

Mrs. Lawrence Drinker and Miss Cath­
erine Thummel sp ent th e M em orial
day w eek-end a t Lake M iltona in M in­
nesota. W ith th e Davises w ere th e ir
d aughter, Mrs. Jo h n R. L auritsen, and
Mr. L au ritsen of M inneapolis. The
Jo h n F. Davises also joined th e p arty
at th e lake, going from a Lake Okoboji house party.
John Davis recently w as elected a
vice p resid en t of th e F irs t N ational
b an k of Omaha and is th e th ird gen­
eratio n of his fam ily to be associated
w ith th e bank. He has been a director
of th e bank since 1935. H is father,

Charter No. 2 0 9

F irst N ational B ank

of O m aha
The
Oldest National Bank
From Omaha West
Nationalized 1 8 63
O F F IC E R S
T . L . D a v i s ............................................. P r e s id e n t
O. H . E l l i o t t ...................... A s s is ta n t C a s h ie r
F . W. T h o m a s .................................V ic e P r e s id e n t
C. H . V e b e r .......................... A s s is ta n t C a s h ie r
J . F . M o D e e m o t t ...............................................V ice P r e sEid. e F
n t. J e p s o n ........................ A s s is ta n t C a s h ie r
0.
D . S a u n d e r s ..............................................V ic e P r e sEid. e nNt . S o l o m o n .................... A s s is ta n t C a s h ie r
J . T . S t e w a r t , I I I , V ic e P r e s , a n d C a s h ie r
J . F . D a v i s ............................. A s s is ta n t C a s h ie r
A.
H . C h i s h o l m .................................. A s s is ta n t C a s hHie. r A . A r n s b e r g e r ............. A s s is ta n t C a s h ie r

•
T. L. Davis, is presid en t of th e bank.
M unicipal Judge P e rry W heeler of
Omaha expressed the opinion recen tly
th a t it w as a sign of “re tu rn in g p ro s­
p e rity ” w hen th ree m en w ere charged
w ith double-parking w hile th ey w ere
in th e Omaha N ational bank.
F ines of all th ree w ere suspended.

Bigger Than a Billion
G overnm ent is not a cross betw een
K ing Midas and Santa Claus. In stead
of tu rn in g to gold, ev ery th in g it
touches is tagged w ith a tax bill of
some kind. Only after playing th e roll
of tax-collector can it play th e role of
“Santa Claus.” If people w ould u n ­
d erstand this fact, th e p resen t d rift
tow ard n ational b a n k ru p tcy w ould be
reversed overnight.
C ontinuous repetitio n of astro n o m ­
ical figures has caused a g overnm ent
deficit of several billion dollars each
year to glance off th e m inds of m ost
of us like w ater off a d uck’s back. The
difference betw een m illions and bil­
lions has become “m icroscopic,” ju st
like those m icroscopic pinpoints of
light we call stars. To th e com m on
citizen, a m illion dollar is as nebulous
as the sta rs—let alone a billion. Stand
a billion dollars alongside of a first
class sta r and b rin g th em close enough
for the average m an to get a good look,
and it is questionable w hich w ould
startle him th e most. As a m a tte r of
fact, he w ould probably n ot believe
w hat he saw.
H ow ever, stop him on th e stre e t and
hand him a bill for $100, payable im ­
m ediately, for “services ren d ered ” by
governm ent, and he w ould be up in
arm s. U nless he happened to be one
of th e com paratively few w ho pay
direct incom e taxes, he w ould literally
hop up and dow n in an ger and de­
m and to know “w h at it w as all about.”
H enceforth he w ould have a new in ­
terest in every public exp en d itu re—
taxes w ould m ean som ething to him.
Dire th e fate of th e politician who
w asted a dollar of th is m an ’s money!
Give every citizen th e know ledge pos­
sessed by him and “m icroscopic” b il­
lions w ould be no more. Public dol­
lars w ould once again assum e th e ir
proper proportion. “A stronom ic” fig­
ures w ould be kicked out of public
bookkeeping!

W . E . S p e a r ...................................T r u s t O fficer
E . G . S o l o m o n . . . . A s s is ta n t T r u s t O fficer

M em ber
F ed era l R eserv e System

M em b er
F ed eral D e p o sit In su ran ce C orp oration

YOUR STATE BANKERS ASSO CIATIO N
O FFICIA L SAFE, V A U L T AN D
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Northwestern Banker


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Federal Reserve Bank of St. Louis

July 19J0

37

S TOCKHOLDERS of th e Om aha N a­
tio n al B ank have approved a plan
increasin g th e com m on stock capital
of th e b ank from $1,500,000 to $2,000,000 and re tirin g th e p re fe rred stock,
it w as announced by W. Dale Clark,
president.
The com m on stock capital w as in ­
creased by d eclaring a 20 p er cent
stock dividend an d by offering 2,000
sh ares of new stock for sale to stock­
holders a t $150 a share. U nder the
stock sale provision, each stockholder
has th e rig h t to buy one new sh are for
each nin e now owned.
N ew funds in excess of $500,000 re ­
su ltin g from th e sale of new stock and
from proceeds of recovered assets
w ere to offset re tire m e n t of 5,000
sh ares of Om aha N ational p re fe rred
stock ow ned by th e R econstruction
F in an ce C orporation.
T he new capital stru c tu re of th e
bank is: Common stock, 20,000 shares,
$2,000,000; surplus, $1,750,000; u n d iv id ­
ed profits, about $200,000; unallocated
reserv es for contingencies, about $100,000. In addition, all th e norm al and
reg u la r reserv es have been set up and
m ain tain ed as usual.
R egular q u a rte rly dividend of $1.50
p er sh are w as declared, payable Ju n e
15. T he new capital stru c tu re setup
w as to be com pleted by Ju n e 17th.
O m aha w as back to n o rm al in Ju n e
afte r an o th e r successful Golden Spike
Days celebration, gen eral ch airm an of
w hich w as Alvin E. Johnson, p resi­
den t of th e Live Stock N ational Bank.

Mr. Johnson, w ho took on th e job
a fte r com pleting w ork as chairm an of
a stren u o u s C om m unity Chest cam ­
paign, w as slated for a vacation w hen
Spike Days w ere over, b u t w as back
a t his office a t th e b an k th e next day.
“I had a vacation,” he said, “I stayed
hom e all day Sunday.”
W. Dale Clark, p resid en t of th e
Om aha N ational bank, p resen ted an
Om aha Clearing H ouse association
leatherbound testim onial book hailing

the fiftieth an n iv ersary of th e W ood­
m en of th e W orld Life Insu ran ce so­
ciety of Om aha to De E m m et B rad­
shaw , president, a t cerem onies re ­
cently in Omaha. The booklet con­
tained a resolution signed by th e p resi­
dents of all Omaha banks.
Fred W. Thomas, vice p resident of
th e F irs t N ational ban k of Omaha,
rep resen ted th e clearing house asso­
ciation in p resen tin g a fram ed reso lu ­
tion to W illiam M. Jeffers, p resid en t
of th e U nion Pacific, a t cerem onies
m ark in g his fiftieth an n iv ersary w ith
th e U nion Pacific.
At a luncheon sponsored by Omaha
civic in terests for Mr. Jeffers, Mr.
Clark review ed Mr. Jeffers’ career.
W. A. Harriman of New York, ch air­
m an of th e board of th e U nion Pacific
and one of th e n atio n ’s forem ost finan­
ciers, w as one of th e guests at the Je f­
fers celebration. H arrim an said in a
speech th a t he believed th e U nited
States should “sell th e allies all th e
w ar m aterials th ey need, and w hen
th e y no longer have funds to pay,
give th em w h a t th ey need.” He m ade
th e statem en t at a G reater Omaha as­
sociation luncheon honoring Mr. Je f­
fers.
Critical of so-called stu d en t peace
councils, J. F. McDermott, vice presi-

Live Stock National Bank
Omaha
S ta te m e n t o f C o n d itio n Ju n e 2 9 , 1 9 4 0
RESOU RCES

L IA B IL IT IE S

L o a n s a n d D i s c o u n ts ................................. 5 , 7 1 2 .2 3 7 . 1 2
B o n d s a n d O th e r S e c u ritie s ..................
7 ,5 4 5 .1 1
S to c k in F e d e ra l R e se rv e B a n k . . . .
3 0 ,0 0 0 .0 0
B a n k in g H o u se a n d F ix tu r e s . . . . • •
1 .0 0
O th e r R e a l E s t a t e ......................................
N one
U . S. G o v ’t S e c u ritie s 4 , 9 3 8 2 1 6 .9 1
C ash, S ig h t E x c h . a n d
D u e F ro m F e d .
R es. B k ..................... 4 , 0 2 9 , 4 8 3 . 2 6 8 , 9 6 7 ,7 0 0 . 1 7

5 0 0 , 0 0 0 .0 0
C a p ita l S to c k ( C o m m o n ) .....................
S u rp lu s
..........................................................
5 0 0 , 0 0 0 .0 0
U n d iv id e d P ro fits ....................................
1 0 8 , 7 8 2 .1 2
U n e a rn e d D is c o u n t .................................
4 ,8 9 4 .0 2
R eserv e fo r T ax es, I n te r e s t, E tc . . . .
1 4 9 4 8 7 .2 7
D iv id en d P a y a b le M a rc h 3 0 , 1 9 4 0 . .
7 , 5 0 0 .0 0
D e p o s its :
B anks
.................. 6 , 2 4 4 ,2 9 3 . 7 0
O th e r D e p o s its . . 7 , 2 0 2 ,5 2 6 . 2 9 1 3 , 4 4 6 ,8 1 9 . 9 9

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

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

C A P IT A L

LO AN S AND

AND SU R P L U S

J u n e 2 9 , 1 9 3 3 ............................................
5 5 0 , 0 0 0 .0 0
J u n e 2 9 , 1 9 4 0 ..........................
. 1 , 0 0 0 ,0 0 0 . 0 0

T h e " W a lte r s ” W a y
W it h o u t P u b lic it y
Q u a lified , ca refu lly in v estig a ted bank
e m p lo y e e s fu rn ish ed free
T H E C H A R L E S E. W A L T E R S CO.
O m aha, N eb rask a


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

1 , 7 5 9 ,1 9 9 . 3 9
5 , 7 1 2 ,2 3 7 . 1 2

D E P O S IT S
J u n e 2 9 , 1 9 3 3 .........................................
J u n e 2 9 , 1 9 4 0 ......................................

SELL YOUR BANK

D IS C O U N T S

J u n e 2 9 , 1 9 3 3 ............................................
J u n e 2 9 , 1 9 4 0 ............................................

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

T O O U R B A N K E R F R I E N D S w e o ffe r o u r f a c i l i t i e s in c o n n e c tio n w ith th e f in a n c ia l p r o b le m s
of t h e i r L iv e S to c k , A g r ic u l tu r a l a n d C o m m e r c ia l c u s to m e rs .
A L V I N E . J O H N S O N , P r e s id e n t.

T h is B a n k H a s N o A ffilia te d C om panies
M e m b e r o f F e deral R e se rv e S y s te m and F e d e ra l D e p o sit In su ra n c e C orporation

Northwestern Banker

July 19JO

38

• NEBRASKA
dent of th e F irs t N ational b an k of
Omaha, urg ed 263 C reighton u n iv e r­
sity g rad u ates at O m aha to “stand
read y to defend th e ir co u n try if th e
need arises.”
A fo rm er com m ander of th e Om aha
post, A m erican Legion, “larg est in the
w orld,” M cD erm ott w as com m ence­
m en t speaker.
“D on’t be afraid to fight for th e
p reserv atio n of th e co n stitu tio n ,” he
said. “A nd don’t be afraid to fight for
your country. Today, A m erica seem s
o v erru n w ith people, som e in high
places, w ho claim th e p rotection of

NEWS

th e co nstitution as a shield for th e ir
tra ito ro u s efforts to destroy it.”
The Omaha school board recently
re-elected by acclam ation YV. Dale
Clark, p resid en t of th e Omaha N a­
tional bank, and J. L. Haugh, vice
p resid en t of th e U nion Pacific ra il­
road, as reg en ts of th e U n iversity of
Omaha, m unicipal in stitu tio n , for
four-year term s beginning Ju ly 1. Mr.
C lark first w as nam ed to th e board
four y ears ago, Mr. H augh tw o years
ago.
“The board and th e u n iv ersity have

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S m a ll d e p o s ito r s , w a g e e a r n e r s w e lc o m e th is
n e w se r v ic e — r e s u lt, n e w c u s to m e r s , m o r e p ro fits.
B u ild G o o d w ill, s o lv e “ m o n e y ord er p r o b le m ”
w ith P A Y C ( P a y A s Y o u C h e c k ) P la n . E n d
m in im u m b a la n c e and se r v ic e c h a r g e p r o b le m s.
S im p lify a c c o u n t h a n d lin g .
N o ch eck ch arge
c o m p u tin g — u n ifo r m h a n d lin g in a d v a n c e . M a n y
le a d in g b a n k s n o w a d o p tin g p la n . In q u ir e n o w .

G e t y o u r s h a r e of th i s s m a ll d e ­
p o s ito r b u s in e s s . W r i t e to d a y , le t
u s sh o w y o u h o w . P A Y C c o p y ­
r ig h t e d b u t no r o y a l ty c h a rg e d to
b a n k s u s in g th e s y s te m . C o m p le te
d e t a il s , e x p e rie n c e s o f o th e r b a n k ­
in g firm s s e n t im m e d i a te l y on re ­
q u e s t. W r i t e D e p t. N W J U L .

United States Check Book Co.
1309-15 HOWARD STREET

•

OMAHA, NEBRASKA

__________________________________________________________________________

*
been singularly favored in having th e
services of tw o such m en,” declared
George Tunison, w ho m oved th e ir elec­
tion by acclam ation.
D uring June, it w as announced by
E. H. Luikart, state banking d ep art­
m en t receiver, th a t 119 form er de­
positors of th e defunct State B ank of
Omaha w ere en titled to eighth divi­
dend checks, and could not be located.
A p erm an en t w ar relief com m ittee
of th e Douglas County Red Cross
ch ap ter at Om aha w as nam ed recently
as th e ch ap ter neared its increased
goal of m ore th a n 72 tho u san d dol­
lars in the drive to aid E u ro p ean w ar
refugees.
M em bers of th e com m ittee include
W. Dale Clark, J. F. McDermott, \V. D.
Hosford. Mr. C lark rep resen ts the
Omaha Clearing H ouse association.
James H. Moore, a ssistan t cashier
of th e Omaha N ational bank, left Ju n e
16 for R utgers u n iversity, New B ru n s­
wick, N. J., to a tten d a tw o w eeks’
session of th e grad u ate school of b an k ­
ing conducted by th e A m erican B ank­
e rs’ association.
Mrs. F red erick Brow n, dau g h ter of
Mr. and Mrs. Carroll H. W egem ann of
Omaha, w ith th e fo rm er’s tw o chil­
dren, 6 and 2, w ere am ong those who
w aited at Galway, Ireland, for a re ­
tu rn to A m erica from the w ar zone
on th e S.S. P resid en t Roosevelt. Mrs.
B row n is th e wife of an em ploye of
th e B ank of E ngland.

WmmmmmmmmmmmmmmmMMmmmmmmmmmmmmwmmmmmmMmmmmimii

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t - o

f - X

o

w

n

B

a

n

k

s

O u t-o f-to w n banks and bankers w ill find here
c o m p le te b a n k in g fa c ilitie s fo r p ro m p t and
econom ical h andling of accounts in Chicago. We
w ould appreciate the opportunity of serving you.

C ity N

a t io n a l

H ank

COMPANY

of Chicag o

AND

TRUST

2 0 8

S O U T H

L A S A L L E

( Member Federal Deposit Insurance Corporation)

Northwestern Banker


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

July 1940

S T R E E T

Om aha C hapter of B ank A uditors
m et recen tly at th e Y.M.C.A. in Coun­
cil Bluffs, w ith m em bers from th e tw o
cities and from Lincoln, Neb., in a t­
tendance. Dwight E. H esse, assist­
a n t cashier of th e Council Bluffs Sav­
ings Bank, w as elected presid en t of
th e association.
O ther officers are: A. C. Glandt, F irst
N ational of Lincoln, first vice-presi­
dent; R. E. Stanley, Packers N ational
of South Omaha, second vice presi­
dent; H. J. Dworak, U nited States N a­
tional of Omaha, treasu rer; H. Echtermeyer, a ssistan t cashier, Live Stock
N ational of South Omaha, secretary.

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.

OM AHA
___________________________________
_

39
w ere m ore th a n a m illion dollars g re a t­
er th a n for May of 1939. In May, 1940,
clearings totaled $13,441,797, as com­
pared w ith $12,347,788 in May of 1939.
The A pril, 1940, clearings w ere $13,365,834. The figures w ere released by
Don Cozard, secretary to th e Lincoln
Clearing H ouse Association.

D EAN B A U M EISTER is th e new
p resid en t of th e Lincoln ch ap ter
of th e A m erican In s titu te of B anking.
He w as elected a t a re c e n t m eeting and
succeeds C harles A nderson. O ther
new officers are:
H erm an B rockm eier, vice president;
P au l Bogott, secretary; S terling Glover,
tre a su re r, and E. U. Guenzel, directors.
Mr. B aum eister appointed a com ­
m ittee to arra n g e an inter-bank-em ­
ploye golf ro u n d robin, s ta rtin g last
m onth. He atten d ed th e A. I. B. con­
ventio n in Boston.
L ucius O. Jones, 82, fo rm er business
m an in B eatrice, N ebraska City,
Om aha an d Lincoln, died recently. He
w as one of th e founders of th e b an k a t
Table Rock, w as p ro m in e n t in N e­
brask a M ethodist ch u rch activities and
lived in th e state since 1879.

Mr. Jones organized th e N ebraska
E p w o rth A ssem bly in 1897 and served
as p resid en t of th e organization 23
years. As secretary of th e national
M ethodist B oard of H ospitals and
Homes, he vistied and obtained funds
for hospitals and hom es from m any
states.

B ruce M cFarland, teller a t th e N a­
tional B ank of Commerce, w here he
has been associated for th e p ast 18
years, has purchased th e in te re st of
E. W. Burdic, cashier of the B ank of
St. E dw ard.
Mr. M cFarland, w ho w ill be cashier
and a m em ber of th e board of direc­
tors, took charge Ju ly 1st. Mr. Burdic,
who had been w ith th e b ank since it
w as organized th re e y ears ago, w ill
take a position w ith the P lattsm o u th
S tate Bank. J. A. In d ra w ill rem ain
president.

N EW S A N D VIEW S
(C ontinued from page 24)

The qualifying w as played over Pio­
neers course, b u t th e m atch play could
be played over any course in th e city,
according to w here th e p articip an ts
are m em bers. E nough players to fill
four flights competed.

Colonel Hanford MacNider, director
of th e F irs t N ational B ank of M ason
City, Iowa, in a recen t address said:
“L et’s have a n ational defense th a t
can ’t be questioned,—a com plete, defi­
nite, im pregnable defense. L et’s cut
to th e bone every sp e n d th rift activ ity
of th is sp e n d th rift adm in istratio n th a t
we m ay be able to pay for it, and still
have credit as a nation.
“Good credit is th e first b u lw ark of
an y sound national defense. Ours
m ust be m aintained, or all ta lk of p ro ­
tection is useless.”

L incoln’s b ank clearings du rin g May

Chester L. Price, advertising and

The an n u al golf to u rn am en t for th e
officers and em ployes of L incoln’s
th re e banks—the F irs t N ational, th e
C ontinental N ational and th e N ational
B ank of Com m erce—got u n d er w ay re ­
cently w ith a qualifying round of 18
holes.

H otel
Wellington
We are h ap p y to list among
our regular guests, a large num ­
ber of the banking fraternity.
You too will thoroughly enjoy
our Courtesy and H ospitality.
S u rp risin g ly R easo n a b le R ates
Rooms With Bath
$2.00— $2.50

F arnam at 18tli Street
OMAHA


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

"Efficient "
Continental National Service is efficient.
Every officer and employe is trained to
handle each correspondent item prompt­
ly and accurately.

( ontinenttal R a t io n a l
B a n k
L IN C O L N
Member Federal Deposit Insurance Corporation

Northwestern Banker

July 19'tO

40

• NEBRASKA
publicity m an ag er of th e City N ational
B ank and T ru s t Com pany, has' been
elected p resid en t of th e Chicago F i­
nancial A dvertisers. Louis H. N o rth ­
rop, a ssista n t vice p resident, F irs t N a­
tional B ank of Chicago, w as elected
vice president. Robert Lindquist, ad­
v ertisin g m an ag er of th e A m erican
N ational B ank and T ru s t Company,
and re tirin g president, au tom atically
becom es a m em ber of th e board.
W ill A. Lane, p resid en t of th e Secu­
rity Savings B ank of M arshalltow n,

N E WS

Iowa, has ju st announced th a t a t th e
an n u al m eeting of his bank, all officers
and directors w ere re-elected.
As of Ju n e 1st th e ban k had to tal de­
posits of $1,863,000, w ith a capital of
$50,000, su rp lu s of $40,000 and u n d i­
vided profits of over $26,000.
In m aking his rep o rt to th e stock­
holders Mr. Lane said: “The business
of banking is not an exact science.
T here is not a m ajo r m ovem ent in th e
w orld b ut w h at has some effect on
business. To atte m p t an evaluation of
th e favorable and unfavorable influ-

“The Bank at the Y ards”
D IR E C T O R S
O F F IC E R S
C. L. Fredricksen, P resident
M. A. W ilson , V ice President and Cashier
W . G. N elson, A ssista n t Cashier
W . C. Schenk, A ssista n t Cashier
L. W . R oss, A ssista n t Cashier

C. R. M cK enna, President, Johnson B isc u it Co.
B. L. Sifford, A ttorney, Siflord & W adden
G. F. Silknitter, President, Sioux City
Stock Yards Company
C. L. Fredricksen, P resident
M. A. W ilson , V ice President and Cashier
H. C. B osw ell, Secretary-Treasurer,
W estern Contracting Corporation

Three-Way Cooperation
For 45 years correspondent bank service at
the Live Stock National Bank has met these
pledges.
1. To handle your items quickly and
efficiently.
2. To specialize in your livestock, grain
and hay transactions in Sioux City.
3. To give you the benefit of our com­
plete knowledge of the live stock
business.
Our many correspondent accounts in South
Dakota, Minnesota, Nebraska and Iowa will
testify that we have more than fulfilled these
pledges.

•
ences, p resen t and potential, and th e ir
possible effect on the business of b an k ­
ing, is th e job of th e banker. The
g reatest efficiency of a bank, and its
g reatest op p o rtu n ity for service, lie in
th e ex ten t of know ledge and th e im m e­
diateness of consideration it gives to
situ atio n s w hich w ill affect th e people
of its com m unity.”
Laurence W. Jackley, the 12 y ear old
son of Winfield C. Jackley, president
of Jackley and Company, in vestm ent
b an k ers of Des Moines, w on first prize
in a p o etry contest recently held by
the Ju n io r D epartm en t of th e P ly­
m outh C ongregational Church, in con­
nection w ith th e ir project “L ighting
L ights of F rien d sh ip .”
Laurence, w ho is b etter know n as
Larry Jackley, took as his subject
“C hildren M ust W ork,” and his prize­
w inning poem is as follows:
E v ery w h ere th ere seem s to be fighting,
Because greedy m en w an t m ore,
A nd it’s all going to end up
In a nice w orld war.
C hildren m ust w ork for peace.
E v ery w h ere th ere seem s to be no love,
Because of one m an ’s hate.
B ut w hy should he m ake young m en
die?
T h a t’s in th e hands of fate.
C hildren m u st w ork for peace.
T here is hate, th e re ’s no love.
A nd because of th at, th e e a rth begins
to sog,
W hy can ’t everybody w ork,
A nd w ork for God?

Offering County Bonds
H alsey, S tu a rt & Company, Inc., is
offering $355,000 Polk county, Iowa,
2 per cent funding bonds due serially
from N ovem ber 1, 1947, th ro u g h 1950.
These bonds to be issued for funding
purposes in the opinion of counsel,
w ill co n stitu te valid and legally bind­
ing obligations of Polk county, pay ­
able from ad valorem taxes w ith o u t
lim itation as to ra te or am o u n t and
are regarded by ban k ers as legal in ­
v estm en t for savings banks in New
York and certain o th er states.
Des Moines is th e county seat of
Polk county, and th e capital city of
Iowa.

Only One Figure
Sioux City, Iowa
M em b e r F e d e r a l D e p o s it I n s u r a n c e

Northwestern Banker


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

July 19'tO

C o r p o r a tio n

Jack: “N ext to a beautiful girl, w h at
do you th in k is th e m ost in terestin g
th in g in th e w orld?”
Jim : “W hen I ’m n ex t to a beautiful
girl I ’m not th in k in g about statistics.”

41
Mr. and Mrs. C. M uetzm ann. Mrs.
R em pfer came to th e U nited States in
1909 and lived for a sh o rt tim e in
Cleveland. She th e n m oved to P a rk s­
ton w here she h ad m ade h er hom e
since.

SOUTH
DAKOTA
F. F. P H IL L IP P I
P r e s id e n t
M ilb a n k

NEWS

Starring Married
A m arriag e of statew ide in te re st to
b a n k ers w as solem nized in H u ro n re ­
cently, w h en Miss M ildred Lucile
Irish , d a u g h te r of Mrs. L illian Irish ,
and George M. S tarrin g , son of Mr.
and Mrs. George A. S tarrin g , spoke
th e ir m arriag e vow s in the C ongrega­
tio n al church, Rev. E d w ard H ale offi­
ciating.
Mrs. S ta rrin g is p ast p resid en t of th e
G am m a C hapter of B eta Sigm a P h i
Sorority, is a m usician an d h as been
active in ch u rch and social circles.
She atten d ed H u ro n H igh School and
H u ro n College. The bridegroom is
se cretary of th e South D akota B an k ers
A ssociation.

Will House Office
H arv ey W illoughby h as p u rch ased
th e fo rm er D akota S tate B ank B uild­
ing w ith all th e b an k fixtures, safety
deposit boxes, and o th er fixtures from
Ed. S. Donohue. He w ill m ove th e
Bonesteel office of th e B u rk e State
B ank from th e b uilding he now occu­
pies into th e new ly pu rch ased building
Ju ly 1st. T he p u rch ase of th is build ­
ing w ill give th e in stitu tio n b e tte r
q u a rte rs in w hich to conduct business.

Office at Leola
The Ipsw ich S tate B ank h as been
given clearance to open a b an k office
a t Leola, S u p erin ten d en t E r 1 i n g
H augo of th e sta te b an k in g d e p a rt­
m en t announced.

Association Meeting
M em bers of th e Ipsw ich, Cresbard,
H osm er, E u re k a and Bowdie B anks
w ere rep re se n te d a t a C ounty C learing
H ouse A ssociation m eeting a t Roscoe.
Officers elected for th e com ing year:
H. C. Cross of Bowdie, p resident; A r­
th u r H a e rte r of H osm er, vice p re si­
dent, an d H. J. Schipke, of Roscoe, sec­
re ta ry -trea su re r.

Converts Charter
S ecurity N ational B ank of E m ery
has been au th o rized to co n v ert its
c h a rte r to th a t of a sta te b an k and
will m ove h e a d q u a rte rs to A lexandria,

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

Elected Vice President

G E O R G E M. S T A R R IN G
S e c r e ta r y - T r e a s u r e r
H u ro n

E rlin g Haugo, state su p erin ten d en t of
banks, said.
The new bank has been authorized
to operate a b ran ch a t E m ery. C. T.
Coyne is cashier and m anager. The
in stitu tio n has a capital of $25,000 and
su rp lu s and undivided profits of $15,900.

To Sioux Falls
H. E. McKee w ent to Sioux Falls
recen tly to a tten d the m onthly m eet­
ing of the directors of th e N orthw est
S ecurity N ational B ank of Sioux Falls.
He w as accom panied by his daughter,
Beth.

Tabor Office
O pening at T abor of a b ran ch office
B ank of Scotland, w as announced reof th e F a rm e rs and M erchants State
cently by E rlin g Haugo, state su p erin ­
ten d en t of banks.

Land Bank Meeting
S ecretary -treasu rer of the various
F ed eral L and B ank agencies operating
in th e te rrito ry su rro u n d in g Pierre,
to g eth er w ith county agents and re p ­
resen tativ es of various loaning agen­
cies, w ere in P ie rre recen tly to a tten d
a conference w i t h rep resen tativ es
from th e Om aha office of th e Federal
L and Bank.
The conference w as devoted largely
to explanation and discussion of poli­
cies to be followed by th e b an k th is
sum m er in ad m in isterin g its loan poli­
cies.
G eneral policies have been studied
a t th e cen tral office in W ashington and
have been devised to m eet th e v arying
situ atio n s over th e co u n try a t large,
it w as explained by A. Jones and
A ndrew H opperud of th e Omaha office.

Mrs. Rempfer Dies
Mrs. A nna R em pfer, w ife of Chris
R em pfer, presid en t of th e F irs t N a­
tio n al B ank of P ark sto n , died recently
a fte r a lingering illness.
Mrs. R em pfer w as born N ovem ber
22, 1875, a t Y astrow , W est P russia,
G erm any, and w as th e d au g h ter of

A rth u r A. B inford, m anager of the
Citizens B ranch of th e U nited States
N ational Bank, P ortland, Oregon, and
form er Brookings m an, has been
elected vice presid en t of the bank, it
w as learned recently.
The advancem ent, according to bank
officials, is in recognition of the serv ­
ices of B inford in th e m anagem ent of
th e b a n k ’s largest P o rtlan d branch.

Longer Term
The op p o rtu n ity to reduce th e a n ­
nual principal paym ents on land bank
com m issioner loans by ream ortizing
them over a longer period of y ears has
been opened to m any of th e 263 B rook­
ings county farm ers w ho have com ­
m issioner loans, according to a sta te ­
m ent received today from th e F arm
C redit A dm inistration of Omaha.
T here w ere about $567,000 of land
bank com m issioner loans outstanding
in th is county at th e beginning of 1940
and in addition approxim ately $1,452,000 of F ed eral L and B ank loans. Some
of these loans have already been re ­
am ortized.

Clearings Gain
Sioux Falls bank clearings gained
$92,307.19 for May th is year in com par­
ison w ith the total for May last year,
it w as revealed a t th e Sioux Falls
clearinghouse in th e N orthw est Secu­
rity N ational Bank.
The total for th e m onth is $7,059,706.08, as com pared to $6,967,398.89 for
May, 1939. T his w as th e second suc­
cessive m onth for b an k clearings gains
in Sioux Falls after th e first th ree
m onths of 1940 show ed decreases in
com parison w ith th e first q u a rte r of
1939.

Bankers Mother Dies
Mrs. C atherine Driscoll, longtim e
resid en t of Lead, and m o th er of R obert
E. Driscoll, R apid City, p resid en t of
th e F irst N ational B ank of th e Black
Hills, died recen tly at h e r Alex Jo h n ­
son H otel ap artm en t. She had been
ill for several weeks.
She had been residing in R apid City
for about six m onths.
She w as a n ative of H oughton, M ich­
igan, and cam e to th e Black H ills in
1882. She ta u g h t in Lead schools u n til
1886, w hen she w as m arried to R obert
H. Driscoll, Lead banker, w ho died in
1932.

42

•

SOUTH

DAKOTA

NEWS

J. M. Henry Resigns

A . !. B. Officers

J. M. H enry, executive vice p resi­
dent of th e Live Stock N ational B ank
of Chicago, resigns Ju ly 1st, it w as a n ­
nounced by David H. R eim ers, p resi­
dent of th e bank. Mr. H enry, w ho has
been active in Chicago b an k in g circles
for 20 years, th e last seven w ith Live
Stock N ational Bank, is joining H.
Collier Sm ith, Jr., in a p a rtn e rsh ip to
m an u factu re precision a irc ra ft p a rts
in Los Angeles, California.

A t the an n u al convention of th e
A m erican In stitu te of B anking in Bos­
ton, J. L eroy D art, vice presid en t of
th e F lorida N ational Bank, Jack so n ­
ville, Florida, w as elected presid en t of
th e In stitu te for th e year 1940-41. Geo.
T. Newell, vice p resid en t of th e M anu­
fa c tu rers T ru st Company, New Y ork
City, w as elected vice presid en t for the
sam e term of office.
N ew m em bers elected to th e A. I. B.

•
executive council for a three-year term
ending in 1943 are: C. E d g ar Johnson,
assista n t cashier, F irs t N ational Bank,
Chicago, Illinois; E rw in V. H olton,
m anager, A m erican T ru st Company,
San Anselm o, California: W illiam C.
W ay, a ssistan t tru s t officer, C entral
N ational B ank of Cleveland, Ohio, and
W illiam C. P itn er, A m erican T ru st &
B anking Company, Chattanooga, T en­
nessee.

1940 Conventions
A nnual C onvention, A tlan­
tic City, New Jersey.
7-8 S e c o n d Mid - C ontinent
T ru st Conference, C h i­
cago, Illinois.
9-11 Iowa, H otel F o rt D e s
Moines, Des Moines.
24-25 N ebraska, Lincoln.
16-19 A nnual C onvention, N a ­
tional A ssociation of B ank
A uditors a n d C om ptrol­
lers, St. Louis, M issouri.
28-30 F in an cial A dvertisers As­
sociation, The H om estead,
H ot Springs, V irginia.
11-15 U. S. Savings and Loan
League, Chicago, Illinois.
9-13 In v estm en t B ankers Asso­
ciation of Am erica, H olly­
wood Beach Hotel, Hollywood-by-the-Sea, Florida.

Sept. 22-26
Nov.

Sept.
Oct.
Oct.

Oct.

Nov.
Dec.

Holding Com pany Dissolves

C oop eration for the com m on g o o d is as im portant b e tw een in ­
d ivid u als as b e tw e e n nations. . . . S in ce farm ing is the b a sic
activity of our country, a sin g le im provem en t in op eratin g
m eth od s often w orks to the ad v a n ta g e of h u n d red s of th ou san d s of co n ­
sum ers. This, b e sid e s th e a d d ed in co m e rea lized b y th e farm er him self, has
m ade A m erican farm ers attain a p osition in th e eco n o m ic w orld n ev er b e ­
fore or a n y w h ere e ls e a c h ie v e d b y an y of the w orld 's rural p op u lation s.
. . . M odern m ach in ery is therefore the p ivot arou n d w h ich farm p rosperity
revolves; an d in this c o n n ectio n th e n am e M in n eap olis-M oline h as for 75
y ea rs b e e n a farm favorite. . . . A g a in in 1940 th ere w ill b e thou san d s of
farm ers w h o w an t MM's n e w HEADLINERS, but w ill not h a v e th e read y ca sh
to p u rch a se th e se im portant m odern tractors an d farm m a ch in e s. H ere lo c a l
b an k ers c a n d o their bit. By e x te n d in g "credit" to d ese r v in g farm ers
th ey w ill b e in c r e a sin g b u sin ess for their
en tire com m u n ity in c lu d in g th e m selv es.
P U L L IN G T O G E T H E R W O R K S FO R
THE G O O D OF ALL.
B ra n ch es N ea r E veryw h ere

M i n n e a p o l i s - M oline

POWER IMPLEMENT COMPANY SKBKSSVS

Northwestern Banker


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

July Í9 W

D issolution of th e A m erican H old­
ing C orporation of Chicago w as voted
at a special m eeting of the stockhold­
ers on Ju n e 24th. T he corporation w as
organized in June, 1933, w ith 50,000
shares of $10 p a r value stock, and held
as its principal asset 6,250 shares of the
common stock of th e A m erican Na­
tional B ank and T ru st Com pany of
Chicago, out of 10,000 shares of b ank
stock outstanding.
A liquidating dividend w ill be m ade
im m ediately a t th e ra te of one ban k
share for each eight shares of holding
corporation stock. A sm all cash dis­
trib u tio n w ill follow, th e am ount to be
determ ined after th e costs of dissolu­
tion have been paid and th e corpora­
tion taxes provided for.
T he existence of th e holding corpo­
ratio n has in no w ay affected th e oper­
ation of th e A m erican N ational Bank,
according to a sta te m e n t m ade by Law ­
rence F. Stern, president, and its dis­
solution now w ill have no effect on the
policies or m anagem ent of th is b ank
w hose resources have grow n from
$13,526,562 in June, 1933, to $73,855,969
at th e end of 1939.

43
Total resources of th e bank in Octo­
ber, 1865, w ere $94,790, as com pared
to $1,948,740 on M arch 26th, th is year.
Capital stock of th e in stitu tio n in the
early day w as $35,000, w hile now it is
$100,000.

MINNESOTA

Sell Bank Stock

NEWS
K . O. S A T T R E
P r e s id e n t
B lu e E a r t h

Red Lake Falls Death
F u n e ra l services w ere held last
m o n th for Sam uel Gibeau, 73, pioneer
Red L ake county b anker, and th e first
ch airm an of th e board of county com ­
m issioners.
He w as active in th e organization
and affairs of Red L ake county b anks
and serv ed in vario u s offices in th e
M erchants S tate B ank of Red Lake
Falls, B ank of Red L ake Falls, F irs t
S tate B ank of Red L ake F alls, and
F irs t S tate B ank of Oklee. A t th e tim e
of his d eath he w as p resid en t of th e
S ecurity S tate B ank of M cIntosh.

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

and evening of Ju n e 20th, celebrating
th e seventy-fifth an n iv ersary of the
founding of the in stitu tio n . On dis­
play w ere p ictu res and accounts of
th e lives of th e organizers, presidents
and o thers pro m in en tly identified w ith
th e ban k d uring the m any y ears of its
operation, as well as collections of old
coins and docum ents.
Staff m em bers and directors and
th e ir wives, and decedents of organiz­
ers of th e b an k w ere en tertain ed a t a

State Charter

T im o th y O’Connor, 74, fo rm er state
hig h w ay com m issioner and form er
m em ber of th e D em ocratic state cen­
tra l com m ittee, died recently. He w as
a pioneer b a n k e r and real estate dealer
and R enville’s first m ayor.

75th Anniversary
T he F irs t N ational B ank of Red
W ing held open house d u rin g th e day

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Federal Reserve Bank of St. Louis

The W abasso State B ank has ef­
fected im provem ents by laying new
floors in th e b ank lobby an d th e por­
tion behind th e b a n k ’s counters re ­
cently, w hich p resen t a g reatly im ­
proved appearance. A new flourescent
lighting system has also been installed
over th e cash counter w hich provides
suitable illum ination, necessary on
d ark days w hen th ere is no sunlight.

At an im p o rtan t m eeting of th e di­
recto rs of th e P ipestone N ational
Bank, W. R. Lange, long connected
w ith th e institu tio n , w as elected vice
presid en t and cashier and w as nam ed
to have active charge of th e bank.
Max Menzel w as elected p resident to
fill th e vacancy caused by the recent
death of A. C. W alker. T. S. H arkinson, vice p resid en t of th e N ational
B ank of South D akota, Sioux Falls,
w as elected as a d irector of th e ban k
for th e balance of th e fiscal year.

George Somero, cashier of th e F irs t
N ational B ank of Ely, w as elected
p resid en t of th e E ig h th D istrict B an k ­
ers A ssociation a t th e a n n u al m eeting
in G rand R apids. Som ero w as elevated
from th e vice presid en cy an d succeeds
G rover M itchell, cash ier of th e F irs t
N ational B ank of G rand R apids.
E. W. Collins, D uluth, is th e new
vice president, and W. C. H olt Calu­
m et, secretary -treasu rer.

Renville Banker Dies

Improvements

New Officer

Heads District Bankers

A c h a rte r has been issued to th e
S tate B ank of B arn u m in C arlton coun­
ty, w hich opened for business on Ju n e
11th, F. A. A m undson, sta te ban k in g
com m issioner, announced.
T he b an k is a conversion of th e
F irs t N ational B ank a t B arnum .
C apital is listed a t $25,000, su rp lu s
$5,000, and undivided profits $1,000.
H. C. H an so n is p resid en t an d H en ry
Johnson, cashier.

Jacob L euthold, Jr., and R alph Leuthold sold th e ir in te re st in th e K asson
State B ank to C. L. P alm er, C. G. P alm ­
er and C. L. W illyard. C. L. P alm er
w ill be th e new president.
The tran sactio n s ends th e connec­
tion of the L euthold nam e w ith b a n k ­
ing in Kasson, w hich has existed since
the to w n ’s early history.

Banks Merged

L E O N J. K A L IH E R

b an q u et at w hich J. C. Thom son, p res­
id ent of th e N orthw est Bancorporation, gave an address.
The first presid en t of th e F irst N a­
tio nal of Red W ing w as Theo. B. Shel­
don, w ho served for thirty-five years
u n til his death in 1900. A nother to
serve th e bank for a thirty-five year
period w as Sam uel E. Lockin, who
acted as a director, vice p resident and
ch airm an of th e board. Mr. Lockin
died in Ja n u a ry of th is year.
Leon J. K eliher, th e p resen t p resi­
dent, came to the b ank in Jan u ary ,
1938, as vice presid en t and director,
and w as nam ed p resid en t in Jan u ary ,
1939.

The Sprague S tate B ank of Cale­
donia recently took over th e F irs t N a­
tional B ank of Caledonia. The F irs t
N ational w as organized in 1899 as th e
H ouston County B ank and in 1904 it
becam e a N ational bank.

New Cashier
F loyd Strom is new cashier of th e
E lysian State Bank. Strom , w ho had
been a ssistan t cashier of the Security
State B ank of W aterville, w as nam ed
to succeed B ert Long, w ho resigned
th e E ly sian cashiership because of
poor health.

Winona A . I. B.
A lvin C. G rulkow ski of th e M er­
ch ants B ank is th e new ly elected p resi­
den t of W inona C hapter, A m erican
In stitu te of B anking, succeeding Mrs.
V ivian E. A lbert of th e W inona Na-

44

•MINN ESOTA

N EWS

tirin g president, and Clarence H a rtn e r
of th e F irs t N ational Bank, m em bers
of th e board of governors for threey e a r term s. O ther m em bers of th e
board of governors are N. W. Schellhas
and Otto W. S childknecht of th e M er­
ch an t Bank, S. J. K rzysko of th e W i­
nona N ational & Savings Bank, and
C. F. W itt of th e F irst N ational Bank.

tional & Savings B ank. T his w as a n ­
nounced a t th e local c h a p te r’s an n u al
banquet, held a t th e W inona C ountry
Club. One h u n d red and sixty atten d ed
th e affair and in addition to local b a n k ­
ers and th e ir guests, th e g roup in ­
cluded c h ap ter officers and m em bers
from M inneapolis, St. P aul and R och­
ester chapters, as w ell as b a n k ers from
th e n eighboring com m unities.
O ther officers elected are B. F. P e r­
kins of th e F irs t N ational B ank, vice
president; W illiam P. T h e u re r of th e
W inona N ational & Savings B ank, sec­
retary -trea su re r, and Mrs. A lbert, r e ­

Capital Increased
A t a special m eeting of th e stock­
holders of th e A ustin S tate Bank, th e
capital stock of th a t in stitu tio n w as in ­
creased from $60,000 to $75,000 and an

S T A T E M E N T O F C O N D IT IO N

• -------------------------------------------------------additional $10,000 tra n sfe rre d to th e
su rp lu s funds, th u s increasing th a t ac­
count to $25,000. T his gives th e b ank
a capital stru c tu re of $100,000 and
autom atically increases the loaning ca­
pacity of th e in stitu tio n in pace w ith
th e req u irêm en ts and grow th of the
com m unity.

In Minnesota
T he N o r t h w e s t e r n B a n k e r is happy
to announce th a t J. S. H oaglund has
become associated w ith th e circulation
and editorial staff of th e publication
as its rep resen tativ e in M innesota,
w ith h ead q u arters in M inneapolis.
Mr. H oaglund has already tak en
over his M innesota te rrito ry , and
w ithout doubt m any of those reading
th is have had a chance to m eet him

First N atio n al B ank and T r u s t C o m p an y
o f M inneapolis
as at June 29, 1940
□
R eso urces

Cash on Hand and Due from B anks..............................$ 65,747,614.39
U. S. Government Bonds (D irect or
Fully Guaranteed) ........................................................ 51,652,800.00
Guaranty Fund (U . S. Bonds with
Commissioner of B a n k s).............................................
600,000.00
Loans and Discounts.......................................................... 38,094,591.25
Other Bonds and Securities.............................................
7,833,712.62
O verdrafts .........................................................................
18,414.97
Bank Buildings ................................................................
691,361.40
Customers’ Acceptance Liability....................................
609,178.80
Bankers’ Acceptances Purchased..................................
304,000.00
363,548.23
Interest Earned but not Collected..................................
$165,915,221.66
L ia b il it ie s

Capital Stock .....................................................................$ 6,000,000.00
Surplus ...............................................................................
6,000,000.00
Undivided Profits ............................................................
2,219,075.80
Reserve for Interest, Expenses, Taxes, etc...................
818,363.79
Interest Collected but not E arn ed ..................................
146,317.64
Letters of Credit and Acceptances..................................
609,178.80
Deposits ............................................................................. 150,122,285.63
$165,915,221.66
U. S. G o v ern m en t O b lig a tio n s and O th er S e c u r itie s C arried at $21,561,984.67
in th e fo reg o in g s ta te m e n t are d e p o sited to secu re P u b lic F u n d s and fo r other
p u rp o ses req u ired b y law
M em b er F e d e ra l D e p o s it In s u r a n c e C o rp o ra tio n

Affiliated with F I R S T
Northwestern Banker


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Federal Reserve Bank of St. Louis

BANK

July 1940

STOCK

CORPORATION

J.

S. H O A G L U N D

w hen he has called at th e ir bank. He
is especially in terested in obtaining
new s item s reg ard in g M innesota b an k ­
ing in stitu tio n s, and w ill appreciate
y o u r cooperation in th is regard. W e
know you w ill enjoy m eeting him , and
w orking w ith him.

In Detroit Branch
P resid en t George J. Schaller of the
F ederal R eserve B ank of Chicago has
announced th a t H. J. Chalfont, as cash­
ier, has been placed in charge of the
D etroit b ran ch of th e F ederal R eserve
B ank of Chicago.
Mr. C halfont has been w ith the bank
for m ore th a n 21 y ears and has had
charge of all in tern al operations of the
D etroit branch, u n d er R alph H. Buss,
m anaging director, w ho died recently.

45

Twin C ity News

T H R E E fo rm er n atio n al p resid en ts
of th e A m erican In stitu te of B ank­
ing, headed th e M inneapolis delega­
tion of 26 to th is y e a r’s AIB conven­
tion in Boston.
T hey are Clarence R. Chaney, vice
president,
N o rth w e ste rn
N ational
B ank & T ru s t Co.; J. Cameron Thom­
son, presid en t, N o rth w est B ancorporation, and H enry Verdelin, a ssista n t
vice president, F irs t N ational B ank
& T ru st Co.
W hen scheduled a ir passen g er serv ­
ice betw een D u lu th and th e T w in
Cities w as re-opened by N o rth w est
A irlines Ju n e 1, th e m an w ho held
tick et No. 1 and w as th e first p assen ­
ger carried w as R. L. Griggs, p re si­
dent, N o rth e rn N ational bank, D uluth.
Joseph A. Cavitzel, a ssista n t cash­
ier, A m erican N ational B ank, St. Paul,
has been elected p resid en t of th e St.
P aul A ssociation of Office Men.
W hen M inneapolis holds its Aquaten n ial Ju ly 20 to 28, b an k s are going
to be w ell rep resen ted in th e program
of ev en ts ta k in g place.
P re p a rin g for p articip atio n of th e
b an k s in th e parade, one of th e events
of th e w eek, is a com m ittee including
John Burgess, N o rth w e ste rn N ational
B ank & T ru st Co.; W illiam E. Brock­
man, M idland N ational B ank & T ru st
Co.; Guy LaLone, F irs t N ational B ank
& T ru s t Co., and Gordon Larkin, M ar­
q u ette N ational Bank.
A fter a long siege of illness follow ­
ing his accident la st year, Otto Brem­
er, ch airm an of A m erican N ational
bank, again is g ettin g aro u n d to his
office.
F ive M inneapolis b a n k ers atten d ed
th is y e a r’s session of th e A m erican
B an k ers A ssociation g rad u ate school

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Federal Reserve Bank of St. Louis

By James M. Sutherland
Special C o rre sp o n d en t

of b anking—th ree of them com pleting
th e ir courses.
Those aw arded certificates w ere
O. H. Odin, executive vice president,
M arquette N ational Bank; Milford E.
Lysen, auditor, and Otis R. Preston,
a ssistan t cashier, both of th e F ederal
R eserve Bank.
O thers atten d in g w ere Clifford C.
Sommer, assistan t cashier, M idland
N ational B ank & T ru st Co., and Gor­
don Murray, a ssistan t cashier, F irs t
N ational B ank & T ru st Co.
New officers of th e T w in City B ank
A uditors and C om ptrollers conference
are Sumner Sinclair, N o rth w estern
N ational B ank & T ru st Co., M inne­
apolis, president; George Osen, A m eri­
can N ational Bank, St. Paul, vice
p resident; Carl Gustafson, F irs t N a­
tional B ank & T ru st Co., M inneapolis,
secretary, and Clarence H. Gieseke,
S ecurity S tate Bank, St. Paul, tre a s­
u rer.
S. J. Mealey, 82, form er d irector of
M idland N ational B ank & T ru st Co.,
died Ju n e 3 at his hom e in Monticello,
Minn.
George Garfield Young, division
m anager of Inv esto rs Syndicate, Inc.,
for M innesota and th e D akotas, died
suddenly a t his hom e in M inneapolis
Ju n e 4. He w as 61 and th e oldest em ­
ploye of th e firm in point of service.
Jam ieson & Co., organized last fall,
has opened a b ran ch office at Fargo,
N. D. R. C. Pierce is in charge of th e
office for th e T w in City in v estm en t
firm.

New officers of th e M innesota E x am ­
iners Club of B ankers, elected d uring
the MBA convention, are John Carlander, p resid en t of th e S tate B ank of
F arib au lt, president; J. T. Peterson,
presid en t of th e S tate B ank of Le
Sueur, vice president; G. N. Reppe,
p resid en t of th e F irs t S tate B ank of
G rand Meadow, secretary-treasurer.
A. A. Crane, M inneapolis, w as
elected presid en t of th e P ioneer Club
of th e MBA a t th e second an n u al m eet­
ing at th e MBA convention. O ther
officers nam ed w ere Linn Whitmore,
W abasha, vice president, and William
Duncan, Jr., secretary.
John Burgess, vice p resid en t of
N o rth w estern N ational B ank & T ru st
Company, M inneapolis, has been ap ­
pointed to th e new ly organized con­
sum er credit council of th e A m erican
B ankers A ssociation.
F ive M inneapolis b an k ers attended
th e 1940 G raduate School of B anking
a t R utgers U niversity, New B ru n s­
wick, New Jersey, w hile th ree of them
com pleted th e ir three-year courses and
w ere graduated.
T he five are Milford E. Lysen, au d ­
itor, M inneapolis F ed eral R eserve
Bank; Gordon Murray, a ssistan t cash­
ier, F irs t N ational B ank & T ru st Com­
pany; O. H. Odin, executive vice p resi­
dent, M arquette N ational Bank; Otis
R. Preston, assistan t cashier, F ederal
R eserve Bank, and Clifford C. Sommer,
a ssistan t cashier, M idland N ational
B ank & T ru st Company.
Mr. Lysen, Mr. Odin and Mr. P re s­
ton graduated.
H. R. Gabrielson, loan officer of M ar­
q uette N ational Bank, has been elected
presid en t of th e R etail C redit A ssocia­
tion of M inneapolis.

46

-•M IN N ESOTA
Minnesota Briefs
H. S. Briggs, p resid en t of th e Secu­
rity S tate B ank, H ouston, has re tu rn e d
from R ochester w h ere he has been
spending considerable tim e looking
afte r his son, D. E. Briggs, w ho has
been th e re for tre a tm e n t. B oth are
back in H ouston now, b u t it w ill be
som e tim e before th e y o u n g er B riggs
w ill be able to assum e active d uties a t
th e bank.
i F. J. Poepl, cash ier of th e State

S ound advice w hen you b u y life
in su ra n c e, a n d a h elp fu l w a tc h
over y o u r ch ang ing needs th e r e ­

NEWS-

B ank of V erm illion, w as m arried re ­
cently.

tu rn e d from a vacation and re st a t
E xcelsior Springs, M issouri.

The F irs t N ational B ank of Rushford has recently com pleted a rem od­
eling and redecorating program , w hich
included th e installatio n of new m a r­
ble counters, according to E. Humble,
cashier of th e in stitution.

A n other recen t E xcelsior Springs
visito r w as B. R. M iller, cashier of th e
Citizens S tate B ank of Glenville. He
has been associated w ith th e Citizens
S tate since 1907.

A no ther b ank to rem odel is th e State
B ank of Sargeant, and b an d it b a rrie r
cages w ere also included in th e
changes made. Theo. Knutson, cash­
ier, is m uch pleased w ith th e new in ­
terio r, w hich gives th e b an k a m ost
m odern appearance.
Hugh Russell, a ssistan t cashier of
th e St. Clair S tate Bank, w as m arried
recen tly to Miss May Westmark, of
M inneapolis. T he couple took a honey­
m oon trip th ro u g h th e w est, including
Y ellow stone P a rk and th e San F ra n ­
cisco F air. Mr. R ussell has been w ith
th e St. Clair S tate for th e p ast tw elve
years.

a fte r, c a n give y o u peace of
m in d a n d save

you

m oney.

Y o u r N WN L a g e n t is n o t only
tra in e d b u t p a id to serve you
in th is w ay; his earnings dep en d
p rim a rily n o t on th e in su ran ce

George Madigau is a new com er to
th e staff of th e Peoples S tate B ank of
M adison Lake, w here he has a position
as a ssistan t cashier. He is g etting
his early ban k in g tra in in g u n d er W.
•T. Ries, w ho has been cashier th ere
for fo u rteen years.
J. J. Walz, a ssista n t cashier of the
Produce S tate B ank of H ollandale, is
now associated w ith th e N orthfield
N ational Bank. B. I. Buley, cashier of
th e Peoples, is beginning to th in k he
and his ban k are som ew hat of a p ro v ­
ing g ro und for fu tu re bankers, since
Mr. W alz is one of m any w hom he has
tra in e d for o th er positions th ro u g h o u t
M innesota. Mr. B uley recently re ­

Gold in Producer
Cooperation
T h ere’s gold in ag ricu ltu ral m a rk e t­
ing cooperation—as m any a farm er
has discovered. T his doesn’t m ean
th a t th e m ark etin g cooperatives have
been able in all cases to obtain an ade­
quate re tu rn for th e ir m em bers’ prod­
uce. A fter all, Rome w asn ’t b u ilt in a
day, nor can sound price stru c tu re be
created overnight. B ut th is k ind of
cooperation, beyond question, has
b ro u g h t farm ers a su b stan tially b etter
re tu rn th a n th ey w ould have received
u n d er old, unorganized, hit-and-m iss
m ark etin g m ethods.
A nd you can’t lim it m ark etin g co­
operative achievem ents to th e cash
re tu rn produced. E xecutives and ex­
p erts of such organizations rep re se n t
th e farm er in conference w ith dealers,
officials of g overnm ent and others.
T hey show m em bers how to produce
m ore for less m oney, and get th e m ost
out of th e farm plant. O ther bene­
ficial activities, both social and eco­
nomic, involve farm w om en and chil­
dren. A nd all of these activities exert
a stro n g progressive influence on ag­
riculture.

Audible G o lf
“W h at so rt of golf does th e M ajor
play?”
“T he v ery w o rst I ever listened to.”

you b u y , b u t on th e in su ran ce
y o u keep in force because it
satisfies you.
(T h is is an adaptation o f N wN L 's
current national m agazine advertisem ent )

Close Contact with the
Majority of
Michigan’s Important Industries
☆

Northwestern
National LIFE
INSURANCE
COMPANY
O . J . A rn o ld , P r e s id e n t

M in n e a p o lis , M in n e s o ta

N orthwestern Banker


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Federal Reserve Bank of St. Louis

J u ly 1 9W

NATIONAL BANK
OF DETROIT
DETROIT,

MI C H I G A N

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

47

NORTH
M A R T IN A A S
P r e s id e n t
N ew R o c k fo rd

DAKOTA
NEWS

C. C. W A T T A M
S e c r e ta r y
F a rg o

The Annual Convention
A R T IN AAS, vice president, F irs t
S tate B ank, N ew Rockford, w as
elected p re sid e n t of th e N o rth Da­
k o ta B an k ers A ssociation, succeeding
F ra n k R. Scott, F argo, a t th e final
b u siness session of th e state b an k ers
convention a t M inot.
J. I. Hegge, p resid en t, F irs t N ational
B ank, H illsboro, w as nam ed vice p re s­
ident, succeeding Aas, an d W. A. Lilyquist, p resid en t, F a rm e rs S tate B ank
of Lisbon, w as elected tre a su re r, suc­
ceeding F re d R. O rth of G rand F orks.
B ism arck w as chosen as th e 1941
convention city. C. C. W a tta m of
F arg o w as ren am ed as secretary.
N o rth D akota m em bers of th e A m er­
ican B an k ers A ssociation, a t a group
m eeting, nam ed F. A. Iris h of F argo
as th e N o rth D akota m em ber of th e
A. B. A. n o m in atin g com m ittee, an d
C larke B assett of F arg o as a lte rn a te
m em ber.
T he follow ing sta te vice p resid en ts
of th e A. B. A. w ere elected: N ational
b an k division, J. A. M ilston, Belfield;
savings division, W. A. L ilyquist, L is­
bon; state b an k division, A. A. Gregor,
Leeds, an d tr u s t division, C arth er
Jackson, G rank F ork s.
A to tal of 220 w ere reg istered before
th e final session of th e convention,
m ark in g an increase, officials said,
over th e en ro llm en t a t th e 1939 ses­
sion.
A m ong resolutions adopted w ere th e
following:
Affirmed “o u r conviction in th e ide­
ology of dem ocracy and re g iste r our
opposition to th e th e o ry of to ta lita r­
ianism as un-A m erican. W e believe
dem ocracy to be a m oral principle, es­
tab lish ed in th e w orld only by th e sac­
rifice of m an y lives, and a co n stitu ­
tional p a rt of o u r g o v ern m en t m u st
be p reserv ed .”
A pproved th e g o v ern m en t’s defense
m easures, and u rg ed speed in carry in g
th em out “W e fu rth e r believe th a t as
m uch of th e needed m oney should be
raised by tax atio n up to th e point

M


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Federal Reserve Bank of St. Louis

w here it does n ot in terfere w ith the
h a sten in g of production. W hile we
do not believe th a t th e m aking of arm s
and m unitions is th e goal of civiliza­
tion, y et we do believe th a t such is
now necessary in order to p reserve it.”
U rged a co n tinuation of effort to
m ake uniform b an king service charges
unanim ous.
Suggested th a t association officers
w o rk to w ard obtaining a change in the
in te rp re ta tio n of th e portion of th e
social security act defining b ank exec­
utives, to elim inate from its provisions
non-salaried executives, w ho a t p res­
e n t “are figured in com puting th e
n u m b er necessary to come u n d er the
act, y et receive no benefit th erefro m .”

Fifty Years
On M onday, Ju ly 8th, th e M erchants
N ational B ank and T ru st Com pany of
Fargo, N o rth D akota, w ill celebrate
th e com pletion of fifty y ears of serv ­
ice. On th e afternoon and evening of
th a t date, officers and directors of the
b ank w ill be hosts to th e com m unity
a t an open house reception in th e b ank
q u arters. A featu re of th e celebration
w ill be an extensive display of early
records of th e b an k and historic relics
of early days in F argo and N o rth Da­
kota. T he exhibit is being assem bled
by and w ill be in charge of th e F argo
C hapter of th e P ioneer D aughters of
N o rth Dakota. On T uesday evening,
Ju ly 9th, th e b a n k ’s staff and directors
w ill be guests of th e b an k at a d in n er
dance to be held a t th e F argo C ountry
Club.
T he b an k w as organized on Ju ly 8,
1890, as th e M erchants S tate Bank.
O riginal capital w as $50,000. F irs t di­
rectors of th e b an k w ere B. F. Spald­
ing, N. A. Lewis, L. S. Cham pine, Alex
S tern, T hom as B aker, Jr., H en ry
R usch, A. C. A ndrew s and C. W. Seebold. N. A. Lew is has th e unique rec­
ord of h aving served th e b an k as a
d irector continuously since its organi­
zation. H e w as its presid en t for

tw enty-tw o years from 1898 to 1920.
Mr. Lewis, w ho now m akes his hom e
in Florida, plans to be in F argo to a t­
ten d th e fiftieth an n iv ersary festivities
and w ill be th e chief speaker a t th e
p a rty to be held on Ju ly 9th.
T he b a n k ’s record is one of steady,
constructive g ro w th w ith th e com­
m unity. C apital w as increased in 1895
to $100,000 and today is $150,000. Capi­
tal, su rplus and undivided profits total
$358,815 and deposits on M arch 26,
1940 (date of th e last call), w ere $3,869,000.
P re se n t officers of th e b ank include
F. R. Scott, president; C larke B assett,
vice president; F. L. D w ight, vice p res­
ident and tru s t officer; C. H. Olson,
cashier, and R. H. B arry, a ssistan t
cashier. D irectors of th e ban k are
C larke B assett, George M. Black, E d ­
w in G. Clapp, F. L. D w ight, F. C. G ard­
ner, R alph F. G unkelm an, N. A. Lewis,
T hom as L. Pow ers, E. J. Schonberg,
F ra n k R. Scott and R. D. W arner.

Reorganized
T he F irs t N ational B ank of M ott has
been reorganized into a state bank,
know n as th e Com m ercial B ank of
Mott, according to State E x am in er
Jo h n A. G raham . All officers, headed
by P resid en t E. H. Trousdale, have
been retained.

Pioneer Dies
Services for Thom as J. A lstad, 84,
w ho came in a p rairie schooner in 1881
to settle in N o rth Dakota, w ere held
recen tly in Pekin. At one tim e Mr.
A lstad ow ned th e land th a t is now the
tow nsite of Pekin.

Elected President
R. C. Collinson w as nam ed president
of th e F irs t N ational Bank, Devils
Lake, succeeding th e late H. E. Baird,
at a m eeting of th e board of directors.
M ack V. T ray n o r w as appointed to fill
th e vacancy caused by B aird ’s death
and th e follow ing ap pointm ents w ere
made: W endell Haley, cashier; E a rl
L. D uell and H eerm an J. Naugle, as­
sistan t cashiers.

Dies in Lidgerwood
O. Quam m en, p resid en t of th e F irs t
N ational B ank and a Lidgerw ood bu si­
ness m an for 33 years, died recen tly
after an illness of a year. K idney tro u ­
ble and com plications w ere cause of
death.
H e w as born Ja n u a ry 5, 1877, a t
M ontevideo, M innesota. H e w as a
m em ber of th e city council and h ad
served as city engineer d u rin g m ost
of his residence. Mr. Q uam m en w as
a Mason, an Elk, a Lion and a m em ber
of th e Lidgerw ood Key Club.

48

MONTANA

NEWS

ET H E L W. W ALKER
S e c r e ta r y - T r e a s u r e r
H e le n a

R . D . M O U N T A IN
P r e s id e n t
C o n ra d

Group Meetings

Montana Annual Convention
D. MOUNTAIN, vice p resid en t of
. F a rm e rs S tate B ank of Conrad,
w as elected p resid en t of th e M ontana
B ank ers A ssociation, to succeed O. M.
Jorgenson of Billings.
Jo h n A. Sanderson, p resid en t of
Daly B ank & T ru s t Com pany, of A na­
conda, w as chosen first vice p resid en t
and F re d H einecke, vice p resid en t of
F irs t N ational B ank of H elena, second
vice president. E th el M. W alker,
H elena, w as re-elected secretary -treas­
urer.
A featu re of th e convention program
w as an address in w hich Dr. L aurence
R. Lunden, in v estm en t counsel for th e
U niv ersity of M innesota, declared th is
c o u n try ’s dom estic econom y w ould
benefit from th e new a rm am en t p ro ­
gram .
B ut he added a note of caution:
“Of course, th e bullish effect of th e

R

ito u te

to be expected th a t any adm in istratio n
w ill in terfere w ith our business o rgan­
ization.”
O. M. Jorgenson, of Billings, in his
p resid en t’s address, asserted “these
are tim es for clear, constructive th in k ­
ing, not only on th e p a rt of th e b a n k ­
ing profession, b u t of all citizens.
“We should confine ourselves to set­
tlin g th e problem s th a t confront us a t
home, problem s n o t alone of a m ate­
rial kind. Our co u n try m u st first have

y o u r

defense problem could be easily n u lli­
fied by failure of th e ad m in istratio n
to coordinate p ro perly capital and la­
bor, tax, fiscal and m o n etary policies.”
More th a n 200 delegates and visitors
to th e M ontana B ankers convention
h e a rd th e first d ay’s speaking p ro ­
gram .
Dr. L unden said:
“Our dom estic econom y w ill be stim ­
u lated by th e rearm am en t program .
It w ill help th e durable in d u stries as
distin g uished from th e consum er
goods type. T his w ill absorb u nem ­
ploym ent, th u s reducing relief rolls,
w hich w ill enlarge payrolls and in
tu rn autom atically alleviate th e tax
b u rd en .”
In cautioning against governm ental
upset, L unden added th a t “th e prob­
lem of desire is so tran scen d en tally
im p o rtant, how ever, th a t it is h ard ly

W isc o n sin

ite m s

D IR E C T
to th e

P

O

I N

T

o f p r o m p t c o lle c t io n !

T h is b a n k is th e larg est in th e Wisco n sin-Iow a-D akota-M innesota area . . . serving
m o re th a n 500 W isconsin c o rresp o n d en ts — as­
su rin g you p ro m p t, efficient collectio n o f W iscon­
sin checks and drafts. Y o u r in q u irie s are invited.

D ir e c t to th e p o i n t ’
b e ca u se — th e F irst
W isc o n sin se rv e s a s
M ilw a u k e e c o r r e ­
s p o n d e n t f o r over
85 p e r c e n t o f a l l
W i s c o n s in b a n k s !

F ir st W isc o n sin N a tio n a l B a n k
Resources over $250,000,000
M E M B E R OF THE F E D E R A L DE P OS I T I N S U R A N C E C OR P OR AT I ON

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 1940

of M ilw a u k e e

Group 2 of th e M ontana B ankers
A ssociation held th e ir 23rd an n u al
m eeting a t T e rry recently. A v ery fine
program w as followed by a d in n er
and dance.
A. S. B rubaker, a ssistan t cashier of
th e T erry S tate Bank, w as nam ed p res­
ident; M. J. F linn, vice p resid en t of
th e F irs t N ational of Miles City, w as
chosen vice president, and R ex Flint,
cashier of th e B ank of B aker, w as
nam ed secretary-treasurer.
G uests p re se n t included O. M. Jo r­
genson, cashier of th e S ecurity T ru st
& Savings B ank of Billings, p resid en t
of th e state group; W. A. B row n of
H elena, state su p erin ten d en t of banks;
Ben D raper, a ssistan t cashier of th e
U nion B ank & T ru st of H elena; J.
M aurice D ietrich, cashier of th e Deer
Lodge B ank & T ru st, and J. T. M errill,
vice p resid en t of th e M idland N ational
of Billings.
Guy P la tt of th e M etals B ank and
T ru st Com pany of B utte w as elected
presid en t of G roup 6, M ontana B ank­
ers A ssociation, w hich m et in Dillon.
Jo h n W ill of th e B ank of Sheridan
w as elected vice p resid en t and Tom
J. Sillers of th e D aly B ank & T ru st
Com pany of A naconda w as nam ed sec­
re ta ry and treasu rer.
T he election w as th e closing featu re
of a successful session held in th e di­
re c to rs’ room of th e F irs t N ational
Bank, w ith J. F. Low ney of th e F irst
N ational Bank, B utte, group president,
presiding. C. M. H olb ert of Tw in
Bridges has been secretary of th e
group for th e p ast year.
R. S. B aker of L ew iston w as elected
presid en t of th e C entral M ontana
group of th e M ontana B ankers Asso­
ciation a t th e an n u al m eeting and b an ­
quet in G reat Falls. H e succeeds Y.
Johnson of W hite S u lphur Springs.
O ther officers elected w ere R. R. W il­
liam s of G reat Falls, vice president,
and Jam es K earns of Tow nsend, sec­
retary -treasu rer.
J. D. Street, cashier of th e Security
B ank and T ru st Com pany of Bozeman,
w as selected p resid en t of group 7 of
the M ontana B ankers A ssociation.
He succeeds J. W. F ry , a ssistan t
cashier of th e Y ellow stone B ank of
L aurel.

49

C. R . G O S S E T T
P r e s id e n t
S io u x C ity

Cashier in Perry
Chas. S. Jo h n so n of Des M oines has
been appointed cashier of th e F irs t
N ational B ank in P e rry an d assum ed
d uties on J u ly 1st.
E. R. B u rk ett, cashier of th e local
b an k since 1926, w ill becom e vice p re s­
ident. R ecently Mr. B u rk e tt’s h ealth
h as been im paired and he asked to be
relieved of full tim e w ork. H e w ill
continue to be p erm a n e n tly connected
w ith th e bank.
Mr. Jo h n so n w ill m ove his fam ily to
P e rry in th e n ea r fu tu re. He atten d ed
D rake U n iv ersity in Des Moines.

FRANK W ARNER
S e c r e ta r y
D es M o in es

Som ers Savings Bank. O utdoor sports
of all kinds w ere th e order of th e day,
and in th e evening 150 pounds of b a r­
becued ribs w ere consum ed, to say
n o thing of th e pop and ice cream th a t
disappeared du rin g th e afternoon. The
picnic w as conceded to be one of the
m ost successful ever held by th e asso­
ciation.

Outing in Clinton

Out-of-town friends w ere en tertain ed
at th e Clinton C ountry Club last m onth
by L. J. Schuster, president, and L. J.
D erflinger, vice p resid en t and cashier
of th e Clinton N ational and the Clinton
Savings B anks, a t the Clinton hosts
Retired Cashier Dies
an n u al catfish d in n er and clam bake.
Jo h n F. P u tzier, D avenport, re tire d
T he group assem bled at th e club at
cashier of th e Blue Grass, Iowa, Sav­ noon for a clam chow der luncheon,
ings B ank, died recen tly in his hom e w hich w as followed by golf in w hich
follow ing a lin g erin g illness. He w as all participated. D inner w as served a t
70 y ears of age.
th e close of th e d ay’s activities.
B orn O ctober 30, 1869, he received
Those p resen t w ere as follows:
his early education in th e D avenport
C. S. Young, vice president, F ederal
schools and la te r atten d ed th e W ilton
R
eserve
Bank, Chicago.
N orm al School. He w as m a rrie d to
George J. Schaller, p resid en t and
Ida L angm ann, w ho preceded him in
death. He w as m a rrie d again in 1928 governor, F ed eral R eserve Bank, Chi­
cago.
in D avenport fo M olly Scheller.
W. H. M iller, vice president, City
The couple m oved to Blue Grass,
w h ere Mr. P u tz ie r becam e cashier of N ational B ank & T ru st Company, Chi­
th e bank, a position he held up u n til cago.
L. K. Billings, a ssistan t vice p resi­
his re tire m e n t seven y ears ago. He
dent,
City N ational B ank & T ru st
w as of L u th e ra n faith.
Company, Chicago.
O. B. W allace, vice president, Conti­
n e n tal Illinois N ational B ank & T ru st
Joins Reserve
T he F ed eral R eserve B ank of Chi­ Company, Chicago.
R. G. D anielson, vice presid en t and
cago rep o rted th a t th e Corydon State
B ank of Corydon, Iow a, has been ad ­ cashier, C ontinental Illinois N ational
m itted to m em bership in th e F ed eral B ank & T ru st Company, Chicago.
N. B. Shaffer, vice president, Conti­
R eserve System . Officers of th e h an k
are L. C. N iebling, p resident; C. L. n e n tal Illinois N ational B ank & T ru st
Clark, vice p resident; H. L. Clarke, Company, Chicago.
N. R. O berw ortm ann, chief national
cashier, and L. I. Nelson, a ssista n t
b ank exam iner, Chicago.
cashier.
C. M. Nelson, vice president, The
N o rth ern T ru st Company, Chicago.
W ebster County Meeting
L. A. Kempf, vice president, The
A bout 250 people atten d ed th e recen t N o rth ern T ru st Company, Chicago.
S. E. Coquillette, president, M er­
a n n u a l b an q u et of th e W eb ster C ounty
B an k ers A ssociation held a t D olliver ch an ts N ational Bank, Cedar Rapids.
Jo h n H am ilton, vice president, M er­
S tate P ark , according to R. C. Allen,
m an ag er of th e C allendar office of th e ch an ts N ational Bank, Cedar Rapids.


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Federal Reserve Bank of St. Louis

D. U. Van M etre, vice president, Mt.
V ernon B ank and T ru st Company, Mt.
V ernon.
A. W. H uey, a ssistan t secretary,
M ississippi Valley T ru st Company, St.
Louis, M issouri.
Louis Jacoby, rep resen tin g Chase
N ational B ank of New York.
B. F. K auffm an, president, B ankers
T ru st Company, Des Moines.
R. R. Rollins, vice president, B ank­
ers T ru st Company, Des Moines.
F ra n k Covert, a ssistan t cashier, D ro­
vers N ational Bank, Chicago.
F re d Cum m ings, D rovers N ational
Bank, Chicago.
D. W. Bates, state su p erin ten d en t of
banking, Des Moines.
A. P. Miche, vice president, H arris
T ru st & Savings Bank, Chicago.
H arm an Remmel, rep resen tin g the
Chem ical N ational Bank, New York,
New York.

Robbery
T he Rock F alls B ank w as robbed
Ju n e 21st of betw een $600 and $700 by
a lone ban d it w ho fled in a late m odel
C hevrolet sedan.
Mrs. E rn a K ram er, bookkeeper, and
Jo h n W ilkinson, son of th e cashier,
w ere in th e b ank w hen th e robbery
occurred.
A fter th e ban d it left, W ilkinson ra n
out of th e b an k in an effort to get
license plate n um bers b u t th e plates
w ere covered.
W ilkinson told officers th e ban d it
w as of m edium height, 50 y ears of age,
w ork d ark glasses, a ta n coat and
b rig h t blue cap.

Heads Johnson Bankers
J. E. Pechm an of the H ills B ank and
T ru st Com pany w as elected p resid en t
of th e Johnson County B ankers Asso­
ciation a t a m eeting held recently.
O ther new officers for th e com ing
y ear are M. B. G uthrie of th e Iow a
S tate B ank and T ru st Company, vice
president; E lm er J. Ulch of Sw isher,
secretary, and O. E. M arkitan of Solon,
treasu rer.

Dividend
P ay m en t of a proposed 15 per cent
dividend, to taling $1,046,869.46 to de­
positors of th e U nion Savings Bank,
D avenport, sta rte d Ju n e 25th, it w as
announced by B ert McCulloch, exam ­
iner-in-charge, follow ing an au th o riza­
tion g ran ted by D istrict Judge W. R.
M aines. Checks w ere ready for dis­
trib u tio n a t th e U nion B ank B uilding
on th a t date.
D istribution of th e latest dividend
w ill b rin g to 55 p er cent paym ents on
original deposit claims.

PROCESSING
f or c o n s u m p t i o n

U p p e r L e f t— T h e I o w a P a c k i n g C o m p a n y
p l a n t in D e s M o in e s is o n e o f th e c o u n t r y ’s
l a r g e s t p o r k p r o c e s s in g p la n ts . U p p e r R ig h t
— A ls o in D e s M o in e s is th e B o o k e y P a c k i n g
C o m p a n y , ty p i c a l o f th e m a n y s m a l le r p la n ts
in th e s ta t e . C e n te r L e f t — P a c k i n g p la n t in ­
t e r io r s a r e m a r v e ls o f s p o tle s s c le a n lin e s s .
C e n te r R ig h t— O ttu m w a is th e h e a d q u a r te r s
o f th e g ig a n tic J o h n M o r r e ll a n d C o m p a n y .
L o w e r R ig h t— W a t e r l o o is th e c e n te r of a c t i v ­
i t y f o r th e n a t i o n a l l y k n o w n R a th P a c k i n g
Digitized
C o m p afor
n y . FRASER

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Federal Reserve Bank of St. Louis

IOWA

by t he w o r d
1

M E AT
T h e r a is in g o f liv e s to c k fo r s la u g h te r a c c o u n ts fo r a p p r o x i­
m a te ly 4 0 p er c e n t o f th e I o w a fa r m e r ’s $ 6 5 9 ,0 0 0 ,0 0 0 in c o m e
a n d 13 p er c e n t o f th e n a tio n ’s o u tp u t. A n d I o w a a lso is o n e
o f th e g r e a te s t p ro cesso rs o f m e a ts in th e c o u n tr y .
I llin o is w it h C h ic a g o , M is so u r i w it h S t. L o u is , K a n sa s w it h
K a n sa s C ity , N e b r a s k a w it h S o u th O m a h a , M in n e so ta w it h
S o u th S t. P a u l, are r e c o g n iz e d as g r e a t m e a t p a c k in g states.
B u t Io w a , w it h 2 4 g o v e r n m e n t in sp e c te d p la n ts , a n d a n u m b e r
o f sm a lle r p la n ts w h ic h d o b u sin e s s e n tir e ly w it h in th e state,
a c c o u n ts fo r a lm o s t o n e -te n th o f all U n it e d S ta tes fin is h e d m e a t.
T h e r e m a in in g n in e -te n th s is d iv id e d a m o n g th e o th e r 47 states.
It is p a r tic u la r ly to th e a d v a n ta g e o f I o w a fa r m e r s th a t so
m a n y m e a t p a c k in g p la n ts are lo c a te d in th e state. F a rm er s,
d e liv e r in g d ir e c t to p a c k in g cen ters, ta k e sp e e d y a d v a n ta g e o f
g o o d m a r k e ts— are n o t su b ject to lo n g -h a u l sh r in k a g e lo sses.
T o d a y , it is e s tim a te d th a t I o w a p a c k in g p la n ts p ay in th e
n e ig h b o r h o o d o f $ 2 0 0 ,0 0 0 ,0 0 0 a n n u a lly fo r m a te r ia ls— b etter
th a n 90 p er c e n t o f w h ic h is fo r liv e sto c k .
In o th e r w o r d s ,
I o w a fa rm e rs r e c e iv e n ea rly $ 1 8 0 ,0 0 0 ,0 0 0 y ea rly fr o m I o w a
p la n ts . A b o u t th r e e -fifth s o f th e a n im a ls ra ised in I o w a are
m a r k e te d to p a c k e r s w it h in th e state, w it h o u ts id e m a r k e ts
b r in g in g I o w a ’s to ta l ca sh in c o m e fr o m h o g s , ca ttle a n d ca lv es,
a n d sh e e p a n d la m b s to b etter th a n $ 3 0 0 ,0 0 0 ,0 0 0 .
M o s t rece n t fig u r e s ( 1 9 3 8 ) in d ic a te th a t th e 2 4 g o v e r n m e n t
in sp e c te d p la n ts in th e state e m p lo y e d 2 ,0 2 0 sa la ried w o r k e r s
(o ffic e , su p e r v iso r y a n d sa le s) a n d 9,521 w a g e ea rn ers ( p la n t
e m p lo y e s ) p a y in g m o r e th a n $ 1 6 ,0 0 0 ,0 0 0 in sa la ries.
R a p id
e x p a n s io n o f sev era l o f th e la rg er I o w a p la n ts p lu s m a n y sm a ll
u n r e p o r te d p la n ts w o u ld in d ic a te th e to ta l e m p lo y m e n t is n o w
n ea rer 1 5 ,0 0 0 , w it h to ta l salaries a p p r o a c h in g $ 2 0 ,0 0 0 ,0 0 0 .
N o cu r r e n t fig u r e s are a v a ila b le o n th e to ta l in v e s t m e n t in
p a c k in g p la n ts in Io w a , b u t it is r e c o g n iz e d to a p p ro a ch $ 1 0 0 ,0 0 0 ,0 0 0 . A ll th e m a jo r p a c k in g c o m p a n ie s h a v e at le a st o n e
p la n t in th e sta te— w it h t w o la r g e a n d n a tio n a lly r e c o g n iz e d
c o m p a n ie s m a in t a in in g h e a d q u a r te r s in Io w a . M ea ts p a c k e d in
I o w a are so ld in all th e states a n d in m a n y f o r e ig n c o u n tr ie s.
T h e in d u s tr y o f m e a t p a c k in g h a s k e p t w e ll a b reast o f I o w a ’s
a g r ic u ltu r e — p r o v id in g I o w a fa r m e r s w it h a rea d y a n d p ro fita b le
m a r k e t fo r th e ir liv e s to c k — a n d s u p p ly in g e m p lo y m e n t for
th o u s a n d s o f I o w a w a g e earn ers.
T h e B a n k e r s T r u s t C o m p a n y , th r o u g h its a b ility to k e e p
a b rea st w it h r a p id ly c h a n g in g b u sin e s s a n d l iv in g c o n d itio n s ,
h a s in a f e w sh o rt y ears b e c o m e o n e o f th e la r g e st in th e state.
W it h its m o d e r n o u tlo o k , B a n k e r s T r u s t C o m p a n y h a s b e c o m e
a n id e a l ca p ita l c ity c o r r e sp o n d e n t fo r b a n k s o v e r th e state, as
e v id e n c e d b y th e la r g e n u m b e r o f b a n k s w h ic h h a v e n a m e d
B a n k e r s T r u s t th e ir D e s M o in e s c o r r e sp o n d e n t.

BANKERS TRUST
COMPANY

6th and L o cust Streets
Des M o i n e s , I o wa

Member Federal Deposit Insurance Corporation


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

Member Federal Deserve System

I
52

YOUR GRACIOUS HOST
FROM COAST TO COAST
y » « ,

The Gotham

News From
S EV EN m em bers of th e Des Moines
C hapter of A. I. B. re tu rn e d re ­
cen tly from th e natio n al convention
in Boston. T hey w ere Kenneth Grif­
fith, Ed Bliquez, A1 Rodine, Harriett
McCoy and John Bauserman, officers
of th e local chapter; W ilbur Ford, w in ­
n er of the scholarship, and Ella W il­
son, delegate a t large. T hey rep o rt in ­
sp iratio n al m eetings and lots of fun.
E n ro ute th ey sp ent a sh o rt tim e in
Quebec and on th e re tu rn trip th ey
visited th e New York F a ir and W ash­
ington, D. C.
J- N. Coffey has been nam ed as as-

D
sista n t cashier of th e C apital City
State B ank by th e d irecto ry board.
Mr. Coffey has been w ith th e bank
since th e m erg er of th e fo rm er Home
Savings B ank w ith th e Capital City
S tate B ank in M arch, 1938. P rio r to
th a t tim e he had been w ith th e Home
Savings B ank for 20 y ears an d w as an
a ssistan t cashier of th a t in stitution.
Mr. Coffey has been active in th e
w ork of th e Des Moines ch ap ter of the
A m erican In stitu te of B anking.

r

The B urlington Jo in t Stock L and
B ank of Des Moines w ill pay its fo u rth
dividend of 6 per cent to holders of
4

Ä

/""i

m

w V

Study oí Earnings, Expenses, Profits,
and Investments in Iowa Banks
The Uralte
The Blachstone

A study of earnings and expenses of state banks in Iow a has been com­
pleted recen tly by R alph Bunce, deputy su p erin ten d en t of banking for Iowa,
w ith figures w hich should be of u n u su al in te re st to every bank in th e state.
Included also are figures on profits and investm ents.
S T A T E C O N S O L ID A T E D
1939
4 Y ear
538 B a n k s
A v e ra g e

P e r C ent Incom e to R esources
In te re st Loans and D isco u n ts...............................................
2.28
In te re st Bonds and S e c u ritie s............................................................. 69
T otal In te re st R eceiv ed ..............................................................
2.98
E xchange and C ollection........................................................................ 18
C om m issions and F e e s ............................................................................ 03
Service Charges .......................................................................................26
O ther Incom e
........................................................................................12
T otal Gross I n c o m e ............................................................... 3.59

TheToiun fiouse
VV E H , ,?

J

ßelleuieui,ßiltmore

A .S .K IR K E B Y ,

M a n a g in g D ir e c t o r

K IR K EB y
HOTELS

Per Cent E xpense to R esources
Salaries Officers ...................................................................................... 64
Salaries O ther ......................................................................................... 36
T otal Salaries
................................................................................. 1.00
A ssessm ent Public F u n d s ...................................................................... 10
In te re st on D eposits ...............
60
T otal A ssessm ent and I n te r e s t.............................................................70
T axes F ed eral and S ta te .............................................................
.16
O ther E xpense
........................................................’ '. .
.5 7
T otal O perating E x p e n se ....................................................... 2.44
P e r Cent Profit to R esources
N et O perating P ro fit...................................................................... 1 .1 4
R ecoveries ................................
44
Charge Offs ................................................................. . . ...............
j;2
N et Profit (A fter Recoveries and Charge O ffs).......................97
P er C ent to Gross E arn in g s
S alaries Officers ..........
17.83
S alaries O ther . ............................................................................. 10.16
T otal Salaries .........................................................
27.99
T otal A ssessm ent and I n te r e s t..............................
19.70
Taxes F ed eral and S t a t e .............................................................
4 .4 5
O ther E xpense ................................................................................ 15 .8 8
O perating Profit ..................................................................... 31.95
P e r Cent In v estm en ts to R esources
Loans and D iscounts ................................................................. .. # 45.85
O ther Bonds
............................................................................. ' ' io.25
U. S. and G uaranteed Bonds ..................................................... 13.55
T otal Inv estm en ts . . . ...............................................
69.65
P e r Cent In v ested Capital to T otal R esources

Northwestern Banker

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

July 19W

9.78

2.25
.76
2.94
.18
.04
.25
.22
3.65
.64
.36
.97
.10
.62
.75
.14
.60
2A6
1 .I 8
.38
'06

.90
17.78
9 87
26.55
20.69
4 07

16.59
32.43
45.99
11.27
14.39
71.65
9.79

Y

4

53

• IOWA
farm loan bonds of th e bank, it w as
an nounced by Roy A. Nelson, receiver.
P rev io u s dividends paid am o u n ted to
45 p e r cent.
In addition a dividend of 4 p er cent
w ill be paid on claim s ag ain st th e gen­
eral assets of th e bank, w hich have not
been pledged on th e bond obligations.
G. AY. Bartm ess an d Don R. Withington, m em bers of th e b udget loan de­
p a rtm e n t staff of th e C entral N ational
B ank and T ru s t Com pany, hav e been
nam ed a ssista n t cashiers by th e board
of d irecto rs of th e bank.
Mr. B artm ess has been w ith th e b an k
for th e last th re e years. H e fo rm erly
w as w ith th e Com m ercial In v e stm e n t
T ru s t Corp in Chicago, Illinois. Mr.
W ith in g to n joined th e b an k a y e a r ago
a fte r five y ears w ith th e Des M oines
office of th e G eneral M otors A ccept­
ance C orporation. B oth m en are g ra d ­
uates of th e U n iv ersity of Iowa.

NEWS*

—

m any y ears experience in th e business
world. P revious to his ap o in tm en t to
th e b ank he w as associated w ith the
R. M. T u ttle Popcorn Com pany of
Spencer w here he w as engaged in both
th e operation of th e popcorn com pany
and in farm ing interests.

and cashier of th e Rock R apids State
Bank, w as nam ed p resid en t of th e
group, and H arold B onander of th e
L archw ood Savings Bank, w as nam ed
as secretary and treasu rer.
T he session w as held a t th e offices
of th e Rock Rapids State Bank.

Lyon County Meeting

Appraisal Schools

M em bers of th e Lyon County B ank­
ers A ssociation m et in Rock Rapids
recently. The group discussed prob­
lem s of in te re st to th e business and
also nam ed officers for th e association.
R ay Nold, executive vice president

A pproxim ately seventy b an k ers from
eight counties in n o rth e a ste rn Iowa
m et in A rlington early last m onth and
atten d ed one of th e Farm -A ppraisal
schools being sponsored by th e Iowa
B ankers A ssociation th ro u g h o u t th e

S T A T E M E N T
June 29. 1940
RESOURCES

C. H. Truedson, D avenport, Iowa,
becam e p resid en t of th e Iow a A ssocia­
tion of P erso n al F in an ce Com panies
a t th e g ro u p ’s a n n u al convention in
Des Moines.
T ruedson succeeds E. L . Roth, Ot­
tum w a, Iow a. O ther new officers are
Li. Bockenstedt, W est U nion, Iowa,
vice p resident; E. E. Chase, Des
Moines, tre a su re r; H. L. Russell, C her­
okee, Iow a, secretary, and G. E. Allbee,
ch airm an of th e board of d irecto rs and
executive com m ittee.
The board of directors, in addition
to Allbee, R oth and B ockenstedt, con­
sists of C. A. Eide, F o rt Dodge, Iowa;
Ellis J. Levitt, Des Moines; E. N. Baty,
Chicago, Illinois; R. J. B aschnagel,
Iow a City, Iowa; A7. E. Belt, W aterloo,
Iowa; and Jay Cherniack, Council
Bluffs, Iowa.
T he possible effect of w ar on in te r­
est rates, th e dem and for hom es, th e
costs of labor and m aterial, and farm
com m odity prices w ere discussed at
th e m ortgage loan clinic of th e Iow a
M ortgage B an k ers A ssociation in Des
Moines.
AAT. AA7. Beal, p ro g ram chairm an, said
th e one-day “get-to g eth er” m eetings of
m ortgage b an k ers had been held in
vario u s p a rts of th e co u n try an d had
been considered w orth-w hile by m em ­
bers.

„
, .
$2,607,570.03
C a s h a n d D u e fro m B a n k s .................................................................
3.103.610.36
L o a n s a n d D is c o u n ts .....................................................................................
299 475 00
U n ite d S ta te s G o v e r n m e n t B o n d s ...........................................................
v-ie o a s 41
S ta te , C o u n ty , a n d M u n ic ip a l B o n d s ..................................................
'
'
O th e r B o n d s a n d S e c u r itie s .......................................................................
S to ck in F e d e r a l R e s e r v e B a n k ................................................................
1 0 7 's n n 00
B a n k B u ild in g , F u r n itu r e a n d F ix tu r e s ...............................................
11 ’ “
_
....
7,651.oZ
O th e r A s s e ts ......................................................................................... .......................................
$7,347,220.98

LIABILITIES
C a p i ta l

............................................................................... $400,000.00

Surplus

.......................................................................... 175'000-°°

U n d iv id e d P ro fits ................................................................
R e s e r v e fo r C o n tin g e n c ie s ..........................................

24,800.62
7 7 ,000.00

TOTAL C A PIT A L A C C O U N T ................................................................S
R e s e r v e fo r T a x e s a n d I n te r e s t................................................................
11500
O th e r L ia b ilitie s ..............................................................................................
D EPOSITS ......................................................................................................................................
$7/347#220.9 8

M em b er

F e d e r a l D e p o s it
C o r p o r a tio n

In su ran ce

Appointed Cashier
T he d irecto rs of th e F a rm e rs T ru st
& Savings B ank of Spencer, a t a recen t
m eeting, appointed K arl R. T uttle,
cashier, succeeding H. W. Campbell,
w ho an nounced his resignation.
T u ttle has been associated w ith th e
b ank since last w in te r and h as h ad

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

,

B

A

N

K

IN SIOUX CITY

_

54

•
state. T he school sta rte d w ith a lu n ch ­
eon a t th e L u th e ra n C hurch an d th e
aftern o o n w as sp en t at th e J. H. Meisgeier farm east of A rlington, w hich
w as used for th e su b ject farm for
appraisal.
H. R. Young, cashier of th e A m eri­
can N ational B ank, w as gen eral c h a ir­
m an in charge of arran g em en ts.
A school of in stru c tio n in farm land
ap p raisal fo r b an k ers of d istric t two,
com prising 12 counties, w as held a t
L iverm ore w ith 30 p re se n t for th e
noon luncheon and d in n er in th e eve­
ning.
The m eeting w as u n d e r th e auspices
of Iow a S tate College, w ith J. F.
H am m , cashier of th e local bank, as
host.
A bout 50 b an k ers from six counties
w ere in A nam osa to a tte n d a state
ap p raisem en t school. T he w o rk w as
carried on a t th e M yers farm , a m ile
n o rth e a st of A nam osa.

IOWA

NEWS

.

L y n n Murfield, cashier of th e Citi­
zens Savings B ank of A nam asa, w as
in charge of local arran g em en ts.
A pproxim ately 50 b an k ers from nine
counties in n o rth e a st Iow a m et a t La
P o rte City in one of a series of farm
ap p raisal schools being conducted u n ­
d er auspices of th e Iow a S tate B ankers
A ssociation, and Iow a S tate College at
Ames.
A rnold Petznick, cashier of th e La
P o rte City Bank, w as general ch air­
m an in charge of arran g em en ts for
th e m eeting.
C ounties rep resen ted included Black
H aw k, B rem er, Benton, B uchanan,
G rundy, Iowa, Johnson, L in n and
Tama.

Joins Remsen Staff
E. P. Popp, late of S tu art, N ebraska,
is a ssistan t cashier of th e F arm ers
Savings Bank, Rem sen, succeeding M.

^Big enough for every need

—

^ o t too big fo r friendliness.

W. Doran. Mr. D oran has gone to take
a sim ilar position in W orthington,
M innesota.
T he new assistant, besides his y ears
of b anking experience, w as clerk of
courts at LaCrosse, K ansas, for th re e
consecutive term s and has had consid­
erable experience also in governm ent
clerical service.

Board Meeting
A t th e re g u la r m eeting of the board
of directors of th e A m erican N ational
Bank, A rlington, F red P. G ernand of
Volga, w as elected directo r to fill th e
vacancy caused by th e death of W il­
liam E. A nderson. Chas. F. E ck h eart
w as elected vice p resid en t to fill th is
office w hich had been held for m any
years by Mr. A nderson.

Barclay to Rutgers
C harles M. B arclay, a ssistan t cashier
of th e W ashington S tate Bank, has
gone to R u tg ers U n iv ersity a t New
B runsw ick, New Jersey , w here he is
en terin g th e g rad u ate school of b an k ­
ing, conducted by th e A m erican B ank­
ers A ssociation for advanced study of
recen t developm ents in banking. An
advanced school for b an k officers, th is
course is atten d ed by 600 m en from
banks in all sections of th e country.

Bank Sold

V

a

L L E Y

SAVINGS BANK
DES M OINES

O fficers
F red erick M . M orrison , P residen t
W in field W . S cott, V ice P residen t
J. R . A stle y , Cashier
E d w ard P . K au tzk y, A ssistan t Vice President
M arvin L . P ayne, A ssistan t Cashier
F ran k M . T h om p son , A ssistan t Cashier

Auditors Meet

£Ï(JLC£±

D . R . W E S S L IN G , P R E S ID E N T

2>
Northwestern Banker

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

July 1940

County Meeting
T he Sioux County B ankers Associa­
tion held th e ir an n u al m eeting a t Hospers. All ban k s in th e county w ith
one exception w ere rep resen ted a t th e
m eeting.
T he follow ing officers of th e county
association w ere chosen for th e en su ­
ing year: P resident, E. S. K iernan,
Alton; vice president, H. C. M oret,
Orange City, and secretary and tre a s­
u rer, Dewey K uiken, M aurice. It w as
voted to accept th e invitatio n extended
by th e Security Savings B ank of Ireton for n ex t y e a r’s an n u al m eeting and
banquet.

M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n

( W z i i L t vi n ca j

The La P o rte City S tate B ank has
been sold to E. E. R onglin of Hanlontow n and L. C. McGill of N orthw ood
by J. J. Maloney. R onglin w ill suc­
ceed M aloney as presid en t and McGill
w ill replace A rnold P etznick as cash­
ier. O ther directors and em ployes w ill
re ta in th e ir positions.

^

l io tn s i, Ü o tvci

M ason City played host last m onth
to b ank aud ito rs and com ptrollers
from all sections of Iow a a t a one day
convention featu rin g an evening b an ­
quet, followed by a “shop” program ,

55

a t th e co u n try club. B. P. Olsen of
M uscatine w as in th e p re sid e n t’s chair
an d C. 0. W ilkinson of M ason City
serv ed as m a ste r of cerem onies.
T he only form al bu sin ess of th e eve­
n in g w as a postp o n em en t u n til n ex t
S eptem ber of th e election of officers.
T he action w ill be ta k e n at Des Moines
in connection w ith th e a n n u a l conven­
tio n of th e sta te b a n k e rs association.
U n til th a t tim e th e p re se n t board of
go vernors w ill continue: B. P. Olsen,
president, M uscatine; R. L. Carson,
vice presid en t, Des M oines; C. R. Col­
ton, secretary -treasu rer, O ttum w a; Ira
L. H ays, Council Bluffs; V. Spalding
M iller, W aterloo; A rnold Boehm , Og­
den; E. H. K etelsen, D avenport.
More th a n 100 b an k ers from 23 coun­
ties w ere in attendance.

IOWA

NEWS

•

D irectors re-elected are J. O. B issett
of Lam oille, Dr. R. R. H ansen, W. A.
Lane, N. C. N ielsen, C harles Stepan
and E. L. W illiam s.
Officers are W. A. Lane, president;
E. L. W illiam s, vice president; G. B.
Brow n, cashier, and C. E. O rr and Mrs.
E sta Conn, a ssistan t cashiers. Mem­
bers of th e stockholders exam ining
com m ittee, w hich w orks w ith a sim ­
ilar com m ittee from th e directors in
m aking q u a rte rly exam inations, are
D. V. M cLean and E. B. Clinton.

Surplus Doubled
The su rp lu s of the D avenport B ank
& T ru st Com pany w as doubled by ac­
tion of the board of directors w hen it
w as voted to tra n sfe r $600,000 from
the reserve to th e su rp lu s fund.
As a re su lt th e su rp lu s of th e in sti­
tu tio n is now $1,200,000, or tw ice th e
am ount of th e capital stock.
A t th e sam e tim e th e directors voted
to pay the reg u lar sem i-annual divi­
dend of $5 a share, to be paid Ju n e 29th
to stockholders of record of Ju n e 15th.

Paid in Full
T he board of d irecto rs of th e Ames
T ru s t an d Savings B ank hav e a n ­
nounced p ay m en t of th e final 15 p er
cent of tr u s t certificates issued a t th e
tim e of th e nation-w ide b an k closure
in F e b ru a ry , 1933.
W ith th is final p ay m en t th e tr u s t
certificates to talin g $303,303.22 issued
seven y ears ago have been com pletely
paid up, an d th e p ro g ram of p ay m en t
ended.

Also at Rutgers
G lenn Rye, exam in er for th e F ed eral
D eposit In su ra n c e C orporation, has
gone to R u tg ers U n iv ersity a t New
B runsw ick, N ew Jersey , w h ere he w ill
re tu rn to th e G raduate School of B an k ­
ing conducted by th e A m erican B an k ­
ers A ssociation.
C. S. Rye, an uncle of G lenn Rye,
joined him a t N ew B ru n sw ick for th e
sam e tra in in g a t R utgers.

Examiner Resigns
H erm an W. W ente, a ssista n t exam ­
in e r for th e receiv ersh ip of th e F irs t
Iow a S tate T ru s t an d Savings B ank
an d th e A m erican Savings B ank and
T ru s t Com pany in B urlington, h as re ­
signed th a t position.
He left for W aterloo, Iow a, w here
he plan s to tak e up o th er w ork.
W ente, w ho h as been in B u rlin g to n
n e a rly eig h t years, said he w as not
read y to announce his fu tu re plans.

GEARED TO SAVE T l f R E - O F T E n A FULL DRV
T o M id w est B a n k e r s ; G et P ro m p t, P ersonal Service on Ite m s and
C ollections b y Using D rovers Service
M a n y p r o g r e s s iv e b a n k e r s h a v e f o u n d b y e x p e r ie n c e th a t th e
h ig h ly tr a in e d s ta ff an d th e s p e c ia liz e d f a c ilit ie s o f th e D r o v e r s
— d o sp e e d c o lle c t io n s .
T h e y a p p r e c ia te th e im m e d ia te p e r ­
s o n a l a tte n tio n w h ic h e a c h ite m a n d c o lle c t io n r e c e iv e s u n d er
th e c lo s e , p e r s o n a l a t te n t io n o f an e x e c u t iv e .
N o t ific a t io n o f
a n u n p a id or r e tu rn ed ite m , is p r o m p t. R e m itt in g o f c o lle c t io n s
to b a n k s n o t c a r r y in g a c c o u n ts h e r e , is g e a r e d to sa v e tim e —
o fte n a f u ll d a y .
W E W ELCOM E YOUR

B U S IN E S S

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

Annual Meeting
Officers an d d irecto rs of th e S ecurity
Savings B ank, M arshalltow n, w ere re ­
elected a t th e an n u al stockh o ld ers’ d in ­
ner. T w enty-seven perso n s attended,
all b u t 23 sh ares of stock being re p re ­
sen ted in p erso n or by proxy.

DROVERS NATIONAL BANN
DROVERS TRUST 0 SAVINGS BANN
U N I O N

S T O C K

Y A R D S ,

C H I C A G O

N orthwestern Banker

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

July 19b0

56

-•
T ran sfe r books of th e in stitu tio n w ill
be closed d u rin g th e period from Ju n e
15th to Ju n e 29th.

Pioneer Dies
David N. F erguson, 75, fo rm er LeG rand b an k er and a m em ber of a pio­
neer fam ily of M arshall county, died
recen tly a t th e hom e of his daughter,
Mrs. M ax M. Mills, M arshalltow n, af­
te r a sh o rt illness.
One of th e o rganizers of th e old LeG rand Savings B ank, he also took an
active in te re st in R epublican politics.
He served as assessor of M arion town-

IOWA

NEWS

•—

ship w hile still living on th e farm ,
served several term s as tru ste e of
M arion tow nship and a fte r m oving to
L eG rand, w as tru ste e of LeG rand
tow nship for th ree term s. He w as a
candidate for th e R epublican nom ina­
tion for state sen ato r in 1920.

Mrs. Toy Dies
Mrs. M ary E lizabeth Toy, w idow of
th e late Jam es F. Toy, p resid en t of
th e Toy N ational Bank, Sioux City,
died recently a t h e r hom e in H olly­
wood, California.
S urvivors are a daughter, Mrs. J.

W. V an Dyke of Sioux City, and a son,
J. F red Toy, of Hollywood. Mrs. Van
Dyke left some w eeks ago for Cali­
fornia to be w ith h er m other and w as
at h er bedside in h er last hours.

Reserve Member
The F ed eral R eserve B ank of Chi­
cago announced th a t th e F arm ers
S tate B ank of Jesup, Iowa, has been
ad m itted to m em bership in th e F ed­
eral R eserve System . Officers of the
b ank include W. W. Blasien, president,
and C. E. S tew art, cashier.

County Election

(ommercefriist (ompany
Capital, Surplus and Undivided'Profits ¡2. Util lion (Doliars

KANSAS CITY'S LARGEST.BANK
M EM BER FEDERAL DEPOSIT
E sta b lish e d 1865

INSURANCE CORPORATION

S tatem en t of C on d ition at C lose of B u sin ess Ju n e 29, 1940

Bank Sales

RESO URCES
C a s h a n d D u e fro m

B a n k s ....................................................................$ 74,301,350.31

U . S. O b lig a tio n s , D ir e c t a n d F u lly G u a r a n te e d ...................

40,319,321.71

S ta t e , M u n ic i p a l a n d F e d e r a l L a n d B a n k B o n d s ...................

27,295,738.27

$114,620,672.02

S to c k o f F e d e r a l R e s e r v e B a n k ...........................................................

270,000.00

O th e r B o n d s a n d S e c u r i t i e s .................................................................

13,388,283.14

40,954,021.41

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

37,894,276.39

B a n k P r e m i s e s a n d O th e r R e a l E s t a t e O w n e d .............................................................

2,615,135.93

C u s to m e r s ’ L i a b i l i t y A c c o u n t L e t t e r s o f C r e d i t ........................................................
A ccru ed

I n te re s t

O v e r d r a f ts

R e c e iv a b l e ................................................................................................

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

T o t a l R e s o u rc e s

28,275.53
353,329.90
2,503.09

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

1,813.35

..................................................................................................................... $196,470,027.62

L IA B IL IT IE S
D e p o s its :
U . S. G o v e rn m e n t D e p o s i t s ...........................................................$
O th e r D e p o s its

1,834,175.00

................................................................................... 182,212,767.71

$184,046,942.71

6,000,000.00

C a p i ta l

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

S u r p lu s

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

3,000,000.00

U n d iv id e d P r o f its ..............................

3,263,959.84

R e s e r v e fo r D iv id e n d s D e c la r e d

60,000.00

12,323,959.84

L i a b i l i t y A c c o u n t L e t t e r s o f C r e d i t .................................................................................

28,275.53

A c c ru e d I n t e r e s t , T a x e s a n d E x p e n s e ............................................................................

67,592.53

O th e r L i a b i l i t i e s

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

M em b e r F e d e ra l R eserv e

S y s te m

The C harles E. W alters Company,
Omaha, rep o rts th e follow ing bank
changes m ade possible th ro u g h th e ir
office recently:
“Our recen t sales includes th e F irs t
State B ank of Shelby, M ontana, to L.
A. C hristenson, fo rm erly presid en t of
th e P roduction C redit C orporation of
Omaha, w ho has been elected p resi­
d en t of th e F irs t S tate B ank of Shelby,
succeeding R. D. M ountain. W e have
also sold th e stock ow ned by E ugene
B urdic in th e B ank of St. E dw ard at
St. E dw ard, N ebraska, to B ruce Mc­
F arland, w ho has been em ployed for
th e p ast fifteen y ears in th e N ational
B ank of Commerce a t Lincoln, N e­
braska. Mr. M cFarland succeeds Mr.
B urdic as cashier.
“W e have also negotiated th e sale of
th e stock of Carl Shalstrom in th e
P rim g h ar Savings B ank in P rim g h ar
to E. T. P eterso n of M alta, M ontana,
and local people. Mr. P eterso n has
succeeded Mr. C halstrom as th e execu­
tive head of th e bank. Our sales in ­
clude tw o o th er banks w hich are not
ready for public announcem ent, one of
w hich has to tals in excess of tw o and
a half m illion dollars.”

3,257.01
$196,470,027.62

T o ta l L ia b ilitie s

The Jackson County B ankers Asso­
ciation m et in th e F a rm e rs Savings
B ank at Spragueville.
E lection of officers resu lted as fol­
lows:
P resident, W. L. W hite, Sprague­
ville.
Vice president, H. J. K ueter of Belle­
vue.
Secretary, Jam es R ipperton, Maquoketa.

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

Northwestern Banker

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

July 19 W

57

•
Reserve Member
A nnou n cem en t is m ade by th e F ed ­
eral R eserve B ank of Chicago th a t th e
F o re st City B ank & T ru s t Com pany
has been ad m itted to m em bership in
the F ed eral R eserve System . Officers
of th e b an k are H. R. Sloephas, p re si­
dent; H. N. Rye, vice p re sid e n t an d
cashier, an d C. O. N erby and H en ry
G jellfald, a ssista n t cashiers.

New Bookkeeper
W. E. “Cy” W horrall, vice p resid en t
of th e F a rm e rs Savings B ank a t Bea­
m an, advises th a t his b an k h as ob­
tain ed th e services of S hirley E. Kaufm an n as bookkeeper a t his in stitu tio n .
Miss K au fm an n lives in Beam an, and
w as fo rm erly em ployed as a ta x ac­
co u n ta n t a t M arshalltow n.

IOWA

NEWS

•

an d secretary of the com pany, before
assum ing his p resen t position w ith the
organization. Mr. C lem ent has been
active in affairs of the H ealth & Acci­
d en t Conference for m any years.

To A . I. B. Positions
A ppointm ent of Dr. W illiam A. I r ­
w in to th e post of N ational E d ucation­
al D irector of th e A m erican In stitu te
of B anking and th e advancem ent of
F loyd W. L arson to th e position of
national secretary of th e A. I. B., w ere
an nounced by Dr. H arold Stonier,
executive m anager of th e A m erican

B ankers A ssociation, afte r a .m eeting
w ith th e executive council of th e In ­
stitu te du rin g th e A. I. B. convention.
Dr. Irw in joined the A. I. B. on No­
vem ber 1, 1937, as a ssistan t educa­
tional director and w as nam ed asso­
ciate educational d irector a y ear ago.
H e has also been a ssistan t d irector of
The G raduate School of B anking for
th e p ast th ree years. W ash b u rn Col­
lege at Topeka, K ansas, conferred a
degree of L.L.D. on him at its com­
m encem ent exercises last m onth. Dr.
Irw in w as head of th e econom ics de­
p artm e n t at W ash b u rn for 16 y ears
before joining th e A. I. B.

Re-elected Treasurer
C hester L. Price, ad v ertisin g and
publicity m an ag er of th e City N ational
B ank and T ru st C om pany of Chicago,
w as re-elected tre a s u re r of th e Chicago
F ed erated A dvertising Club a t th e
club’s a n n u al m eeting recently. T his
re-election m ark s th e sev en th consecu­
tive y e a r th a t Mr. P rice has held th is
position, h av in g been tre a s u re r since
the clu b ’s o rganization in 1934. Mr.
P rice w as fu rth e r h onored w h en he
w as elected p re sid e n t of th e Chicago
F in an cial A dv ertisers Club, a post he
held in 1933.

CLOSE

Clement Heads Conference
P au l Clem ent, se c re ta ry and g eneral
m an ag er of th e M innesota Com m ercial
M en’s In su ran ce Com pany, w as nam ed
p resid en t of th e H ealth & A ccident
U n d erw riters C onference in th e con­
cluding session of th e o rganization at
its a n n u a l m eeting held recen tly in
M inneapolis. Jo h n M. Pow ell, Loyal
P ro tectiv e Life, w as nam ed ch airm an
of th e executive com m ittee; F. B. All­
dredge, O ccidental Life, becom es first
vice president, and D. G. T rone, In d i­
an a T rav elers A ssurance, second vice
president.
Mr. Clem ent, a n ativ e of M inneap­
olis, has sp en t his en tire b u siness ca­
re e r in th a t city, and becam e asso­
ciated w ith M innesota Com m ercial
M en’s Club as cash ier in 1915. H e has
held in tu r n offices of office m anager,

BASI C

C H I C A G O ’S

INDUSTRIES

• C h ica g o is th e secon d, la rg est w h o le sa le a n d retail
m ark et in th e n a tio n .

C o n se q u e n tly , it is im p ortan t

th a t y o u r C h ic a g o b a n k in g c o n n e c tio n b e e q u ip p e d
to h elp y o u p r o m o te c o n str u c tiv e c o n ta c ts for you r
d e p o sito r s in th is k ey area. T h e A m erican N a tio n a l
Bank, b eca u se it is servin g a b ro a d list o f b a sic C h ica g o
in d u stries, is rea d y to perform th is m issio n in a d d itio n
to p ro v id in g y o u w ith a c o rre sp o n d en t service th a t is
b o th c o m p le te an d a d a p te d to y o u r in d iv id u a l n eed s.
M ak e th is b an k y o u r C h ic a g o h ead q u arters.

A M ER IC A N N A T IO N A L BANK
AND TRUST CO M P A N Y
C J-lc o m t

Bank for Sale
Controlling stock, northern Iowa town
of 900 $25,000.00. Address C. B„ c/o
NORTHWESTERN BANKER, 555 Seventh
St., Des Moines, Iowa.

TO

LA

SALLE

STRE E T

AT

W A S H I N G T O N

M em b er Federal D eposit Insurance C o rporation

COMMERCIAL

•

CHECKING

•

SAVINGS

•

TRUSTS

Northwestern Banker

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

July 1940

58

•
Mr. L arso n has been a ssista n t secre­
ta ry of th e A m erican In stitu te of B an k ­
ing since N ovem ber, 1937, com ing to
the national office from M inneapolis

IOWA

NEWS

C hapter of w hich he w as executive
secretary for several years. In becom ­
ing secretary of th e In stitu te he takes
over th e office filled by R ichard W.

In Sioux City . . . Personal
Service to Correspondents
To keep in step with the times, the bank of
today must gear its services to the pulse of
progress.

There should be 100 per cent per­

formance in the handling of every customer's
account.

This bank is geared to give that

personal service so essential in the present
financial world.

Security National Bank
OFFICERS
C h a rle s R. G ossett, P resid e n t
A lb ert C. E ckert, V ice P resid e n t

Delko Bloem, Vice P resid e n t
R. E a rl B row n, C a s h ie r
D a n iel B. S ev erso n , F ra n k H. A b el, A lvin G. N elson,
R obert W . Lew is, A ss is ta n t C ash ie rs

AT THE

W A R R I O R
A GENUINE WELCOME
FOR THE TRAVELE R
Iow a's finest hotel, the W a rrio r provides
com fortable accom m odations of superior
q uality.
Equally superb is the co rd ial
atm osphere; and serv ice is atten tive yet
unobtrusive. You'll like Hotel W arrio r.

S I O

U

X

C

I

T

Y

A C H IE V E M EN T IN H O S P IT A LIT Y
•
EPPLEY H O TELS C O M P A N Y
E. C . EPPLEY, P r e s i d e n t

Northwestern Banker

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

July 1940

•

’

!

H ill for 24 years. Mr. H ill w as p ro ­
m oted to th e post of secretary of the
A m erican B ankers A ssociation th re e
y ears ago. He w ill now devote his full
tim e to th is office and to T he G raduate
School of B anking, of w hich he is re g ­
istrar.

Ayres Sees New Era
W e have reached th e end of an era
in th e h isto ry of A m erican business,
and are e n terin g upon a new and dif­
feren t era, according to Colonel L eon­
ard P. A yres, vice p resid en t of th e
Cleveland T ru st Company, w ho lec­
tu re d a t T he G raduate School of B ank­
ing conducted by th e A m erican B ank­
ers A ssociation a t R utgers U niversity.
Colonel A yres’ subject w as “B anking
and th e B usiness Cycle.” H e stated
th a t “th e change has come about be­
cause th e w ave-like fluctuations in th e
production of durable goods, w hich
cause and co n stitu te business cycles,
no longer result, as th ey did form erly,
from long w ave-like fluctuations in in ­
te re st rates.
“D urable goods,” he said, “include
all th e m ach in ery of production, ev ery ­
th in g th a t goes into construction, all
p lan ts and pow er lines of our public
utilities, all appliances of business
offices, as w ell as som e th in g s used by
fam ilies, such as autom obiles, house
fu rn itu re and furnishings, re frig e ra ­
tors and radios. Our accum ulations
of durable goods largely co nstitute our
n ational w ealth, b u t th e y do n ot all in ­
crease our w ealth because now our
durable goods include m u n itio n s of
w ar w hich consum e w ealth b u t do not
produce it.
“W e have been altern a te ly speeding
up and slow ing dow n our production
of durable goods for m any decades,
and so have all th e o ther in d u strial
nations, and it is th a t u n even produc­
tion w hich has caused th e w ave-like
expansions and contractions of busi­
ness activ ity w hich w e know as busi­
ness cycles. These a lte rn a te periods
of expansion and contraction in th e
production of durable goods re su lt
from decisive changes in th e am ounts
of m oney being sp en t for such goods,
and those changes in th e volum es of
purch asin g have in norm al tim es
largely resu lted from decisions m ade
by business en terprises. In recen t
years, and a t p resent, th e changes
largely re su lt from variatio n s in gov­
ern m en t expenditures.
“B usiness cycles re su lt from w ave­
like expansions and contractions in
the production of durable goods.
Changes in th e am ounts of m oney
spent by business en terp rises for th e
p u rchase of durable goods have re-

59

•
su ited from changes in th e volum es of
sales of new secu rities w hich have
decreased d u rin g b ear m a rk e ts for
bonds an d stocks, and increased d u r­
ing bull m ark ets. W ith alm ost com ­
plete re g u la rity d u rin g th e p a st eighty
y ears th e d o w n tu rn s of th e secu rity
prices a t th e tops of bull m ark ets, an d
th e ir u p tu rn s from th e bottom s of b ear
m ark ets, have closely follow ed u p tu rn s
and d o w n tu rn s in th e levels of sh o rt­
te rm in te re st rates.
“In bull m a rk e ts for secu rities th e
advances in short-term in te re st ra te s
have b ro u g h t about d o w n tu rn s in bond
prices w hich have n o rm ally been
sh o rtly follow ed by d o w n tu rn s in stock
prices. T hese declines in secu rity
prices have created unfav o rab le m a r­
k e t conditions for floating new secu ri­
ties, and so have re su lte d in dow n­
tu rn s in th e volum es of new issues.
W hen th e volum e of new issues has
tu rn e d dow nw ard th e inflow of new
funds in to p roductive e n te rp rise has
decreased, an d a bu sin ess decline h as
started. T he process a t th e bottom
of th e bu sin ess cycle h as been a sim ­
ilar one, b u t w ith all th e tu rn in g m ove­
m en ts reversed.
“T he long w ave-like u p w a rd fluctua­
tions an d d ow nw ard fluctuations in
th e levels of sh o rt-term in te re st ra te s
have been m ain ly caused by th e oper­
ation of our b an k in g law s and reg u la­
tions w hich have controlled th e ex­
pansions and co n stru ctio n s of b an k
cred it th ro u g h causing a lte rn a te in ­
creases and decreases in b a n k re ­
serves. T his m eans th a t in th e p ast
our b u siness cycles have been caused
by th e operations of o u r b an k in g law s
and regulations, o u r b u siness proce­
dures, and th e processes of our secu­
rity m a rk e ts.”

IOWA

NEWS

•

ity is v itally concerned w ith th e b u y ­
ing and selling of goods and services.
T h a t’s w h a t keeps m en a t w ork—
keeps tra n sp o rta tio n system s busy—
produces needed ta x rev en u e—p ro ­
vides, directly or indirectly, th e in ­
come of doctor and law yer and candle­
stick m ak er—and m ain tain s th e local
sta n d ard of living.
F ew public services are so im por­
ta n t as banking. A nd few in stitu tio n s
have done so fine a job in th e public
in terest. P riv a te banking, u n d er strict
public regulation, provided th e finan­
cial life blood th a t m ade possible th e

c 7 7 ’P

g reat in d u strial and econom ic devel­
opm ents of th e past. A nd p riv ate
banking, still u n d er stric t public reg u ­
lation, is m aking possible th e g reat in ­
d u strial and econom ic developm ents
of today. You m ay nev er have entered
a bank, b u t b an king is nevertheless
an ever-present factor in yo u r life and
w ork. A nd its im portance grows, not
lessens, w ith th e passing years.

Unfair Rules
No citizen in th is co u n try w ould
countenance a football gam e, a base-

(7 T --

inm teA

Aaéin

Banks and the Community
T he p rim a ry p urpose of b an k in g is
to serve th e com m unity, th e state and
th e nation.
The g re a te r p a rt of b an k in g oper­
ation consists of m aking loans to b u si­
nesses and in dividuals w h ere p ra c ti­
cally every loan m ade re n d e rs a com ­
m u n ity service.
W hen, for instance, a b a n k loans a
person m oney to build a new home,
the w hole to w n benefits. P ro p e rty
values are im proved. N ew taxable a s­
sets are created. Local w o rk m en and
dealers in supplies are given w o rk and
orders. M ore m oney goes into circu­
lation.
A nd a sim ilar th in g hap p en s w h en
a b an k loans to a local m erch an t, for
the purpose of buying goods or im ­
proving his store, or expanding his
business. The life of ev ery com m un­

i

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( i/

A

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MEMBER

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FEDERAL

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DEPO SIT

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IN SU R A N C E

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CO RPO RA T IO N

Northwestern Banker

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

3

July 19JO

60
•
ball gam e or an y o th er gam e in w hich
in o rd er to give one side th e a d v an ­
tage, th e opposing p layers w ere re ­
quired to com pete w ith legs hobbled.
Public re se n tm e n t w ould stop such a
farce a t once.
A nd y e t th a t is th e k in d of u n fa ir­
ness you see u n d e r th e p re se n t F ed eral
pow er pro g ram w here tax-subsidized,
tax-exem pt electric p lan ts of th e gov­
e rn m e n t go into com petition w ith p ri­
vately financed, hig h ly tax ed p lan ts
of p riv ate citizens. N ot satisfied w ith
such favoritism th e public p lan ts de­
m and an d receive exem ption from all
th e rules, reg u latio n s and restrictio n s
of gov ern m en t u n d e r w hich p riv ate
plan ts m u st play th e game.

I O W A

N E W S

Responsible for W aste
I t ’s a ra re person w ho doesn’t con­
sider price w hen he m akes a purchase.
W h eth er it be a hom e, an autom obile,
a su it of clothes or a can of beans, he
w eighs th e related factors of cost and
quality before deciding w h e th e r he is
g ettin g his m oney’s w orth.
B ut take a th o u san d or a m illion or
a h u n d red m illion of such otherw ise
sensible people, in th e ir collective role
as citizens and taxpayers, and th ey
exhibit an en tirely different point of
view w hen spending th e ir m oney for
g o v ernm ental purposes. A ny glib
politician or local “b ooster” can p er­
suade th em to enth u siastically back
th e spending of trem endous sum s of
ta x m oney for “local b e tte rm e n t.”

TO BROADEN THE
USEFULNESS OF
OUT-OF-TOW N BANKS
All departments of The N orthern Trust Company offer
correspondent banks the opportunity to share in the results
of their wide experience. Schooled in modern methods,
possessing broad fact-finding facilities, and serving with an
inherent willingness, the personnel of this institution gladly
assists out-of-town banks in extending their usefulness
within their hom e territories. You will appreciate the
friendly helpfulness which characterizes a connection here.

THE NORTHERN
TRUST COMPANY
50 S O U T H LA SALLE S T R E E T , C H I C A G O
Member Federal Deposit Insurance Corporation

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 19^0

•
W hether it be a bridge, a park, a
sew er, a playground or an y th in g else,
th ey endorse it w holeheartedly, irre ­
spective of how m uch it costs, or how
little it m ay be needed. There, in a
nutshell, is one of th e p rim ary reasons
for our desperate fiscal situation.
Shrew d buy ers th a t we are as individ­
uals, w e have proven ourselves to be
suckers w hen it comes to spending
our ta x money.
I t ’s easy enough to blam e th e poli­
ticians for this, and certain ly th ey
have been a factor in favor of reck ­
less prodigality. B ut th e fact remains
th a t we elect th e politicians, and
th ey can’t keep th e ir jobs w ith o u t our
approval. T he public gets th e kind
of re p resen tatio n it deserves. If th e
people w a n t to co u rt n ational b a n k ­
ruptcy, as th ey a p p aren tly have in the
past, th e politicians w ill gladly follow
th e ir lead, and vote for every spending
m easure th a t comes up. If th e people
w an t econom y and local independence,
th ey can have it.
T he resp o nsibility comes straig h t
hom e to th e voters. In th e long run,
th ey m ake all public policies. A nd
th ey have m ade th e p resen t policy of
fiscal in san ity th a t has b ro u g h t w ith
it th e m ost serious debt and tax prob­
lem in our history.

Who Is Overtaxed?
R ecently a h igh F ed eral official came
fo rth w ith an asto n ish in g statem en t
to th e effect th a t com m ercial m otor
vehicles are paying too m uch for th e
use of th e public highw ays—w hile the
priv ate u ser is n ot paying enough.
T h at opinion, w hich goes co u n ter to
the facts produced by ou tstan d in g su r­
veys of tru ck in g taxes, w as based on
the assum ption th a t hom e ow ners,
farm ers and oth ers w ho pay general
taxes should pay 60 per cent of all
highw ay taxes—w hile those w ho use
the roads should pay b u t 40 p er cent.
C om m enting on this, Jo h n J. Pelley
of th e A ssociation of A m erican R ail­
roads, observed: “I don’t th in k th e
tax p ay ers of th e co u n try w ill accept
any such conclusion as correct. . . .
The question of w h e th e r tru ck in g com­
panies pay th e ir sh are of th e cost of
the roads th ey use is one to be d eter­
m ined by a careful study of th e facts
in each state.”
As it happens, tw o states have m ade
such official studies—M issouri and
Illinois. A ccording to th e M issouri
study, th e tax p ay ers are subsidizing
the com m ercial tru c k e rs to th e tu n e
of from $231 to $615 p er tru c k each
year. A nd according to th e Illinois
study, th e subsidy ru n s as high as
$996 p e r tru c k p er year.
It is going to be h ard for anyone to

61

-•
laugh off su rv ey s such as these. Cer­
tainly, sw eeping generalized s ta te ­
m ents, unbacked by factual data, w o n ’t
satisfy th e th in k in g citizen w ho m u st
pay co n stan tly m o u n tin g tax es to
build th e m ost costly typ es of h ig h ­
w ays and bridges req u ired to c a rry v ir­
tu a lly railroad-car-size com m ercial m o­
to r eq u ip m en t w hich causes infinitely
m ore w ear and dam age to road s u r­
faces th a n do p riv ate cars and farm
traffic.
It is an in te re stin g com m entary on
all th is th a t th e railro ad s co n trib u te
over $35,000,000 a y e a r to co n stru ctio n
and m ain ten an ce of h ighw ays th ro u g h
p ay m en t of tax es on th e ir pro p erty .
T h a t is $8,000,000 m ore th a n th e to tal
taxes, fees an d o th er charges of all
so rts paid for all purposes by m otor
tru c k in g com panies w h ich h au l freig h t
on tax-m aintained highw ays. If th e
tru c k e rs are overtaxed, m o st of th e
un p reju d iced econom ists w ho have
studied th e question belong in m en tal
in stitu tio n s.

Trust Conference
P re se n t day tre n d s in taxes, in v est­
m en ts and public relatio n s w ill be th e
ou tstan d in g subjects for discussion at
the E ig h teen th R egional T ru s t C onfer­
ence of th e Pacific Coast and Rocky
M ountain States to be held in Salt
L ake City, U tah, A ugust 15-17, u n d er
the auspices of th e T ru st D ivision of
th e A m erican B ankers A ssociation, ac­
cording to th e pro g ram announced by
R oland E. Clark, p resid en t of th e
A. B. A. T ru st Division, w ho is vice
p resid en t of th e N ational B ank of Com­
m erce, P ortland, Maine.
T he T ru st D ivision of th e U tah
B an k ers A ssociation w ill act as hosts
to th is conference. Jo h n M. W allace,
vice p resid en t of th e W alker B ank &
T ru s t C om pany of Salt L ake City, is
gen eral ch airm an of th e conference.
T he b an q u et sp eak er th e opening
n ig h t w ill be J. R euben Clark, fo rm er
am bassador to Mexico. O ther o u t­
stan d in g speak ers on th e p ro g ram in ­
clude Dr. A dam S. B ennion, a ssista n t
to th e p resid en t of th e U tah P ow er &
L ig h t Co., Salt L ake City; H e n ry A.
Theis, vice p re sid e n t of th e G u aran ty
T ru st Com pany of N ew Y ork City;
Roy H. Booth, a ssista n t tr u s t officer
of th e N ational S haw m ut B ank of
Boston, Mass.; and E. C. B arrett, com p­
tro lle r of th e C alifornia In s titu te of
Technology, P asadena, California.
T he closing session w ill be devoted
to a Q uestion Box period u n d e r th e di­
rectio n of G ilbert T. S tephenson, Di­
re c to r of T ru st R esearch of th e A m er­
ican B an k ers A ssociation, New York.

IOWA

NEWS

—

Two Hearings
Two h earings on p etitions to red e­
fine “executive” and o th er term s used
to describe em ployes exem pt from
m inim um wage and m axim um hour
provisions of th e F a ir Labor S tandards
Act w ere scheduled by Colonel Philip
B. F lem ing, a d m in istrato r of the W age
and H our Division, U nited States De­
p a rtm e n t of Labor.
A t th e first hearing, testim ony will
be received on th e w orking of the p res­

e n t regulation defining th e exem ption
in banking, brokerage, insurance,
financial and related industries. I t will
be held at 10:00 a. m. on Ju ly 9th, at
the New W illard Hotel, W ashington,
D. C. H arold Stein, a ssistan t director
of th e H ourings B ranch of th e Divi­
sion, w ill preside.
The second w ill include th e publica­
tion, com m unication, public utilities,
tran sp o rtatio n and m iscellaneous in ­
dustries. It w ill be held at 10:00 a. m.,

cJUje

LIVE STOCK
NATIONAL BANK
o f Chlcjauqjcr
UNION

$

STO CK Y A R D S

STATEMENT

OF

f

CONDITIO

JUNE 29, 1940
BOARD OF DIRECTORS
F R E D E R IC K H. P R IN C E
F. H. Prince & Co., P rovidence, R. I.
R O B E R T J. D U N H A M
In v e stm e n ts
R IC H A R D H A C K E T T
G e n e ra l M a n a g e r, C e n tra l
M a n u fa c tu rin g D istrict
O R V IS T. H E N K L E
V ice-P resident a n d G e n e ra l
M a n a g e r, U nion Stock Y ard
& T ra n sit Co.
A R T H U R G. L E O N A R D
P re sid e n t, U nion Stock Y ard
& T ra n s it Co.
. M cD o n o u g h
In v estm en ts, P rovidence, R. I.

ja m e s

a

W IL L IA M J . O 'C O N N O R
A ss't G e n e ra l M a n a g e r, U nion
Stock Y a rd & T ra n sit Co.
D A V ID H. R E IM E R S
P resid en t, The Live Stock
N a tio n a l B ank of C h icag o
C L Y D E H. S C H R Y V E R
P resid en t, C h ic a g o M erch a n d ise
a n d E qu ip m en t Co.
R A L P H M. S H A W
W in sto n , S tra w n & S h aw
T H O M A S E. W IL S O N
C h a irm a n , B o ard of D irectors
W ilso n & C o m p an y

RESOURCES
C a s h a n d d u e from b a n k s .............................................
$19,4 1 1 ,9 1 5 .2 7
U nited S ta te s G overnm ent S e c u rities
2,396,4 4 0 .6 2
S ta te a n d M u n ic ip a l S e c u ritie s.......................................
8 7 7 ,832.82
O th e r M a rk e ta b le Bonds
1,068,288.41
5,946,546.41
L oans a n d d isc o u n ts............................................................
F e d e ra l R eserve B ank stock
75,000.00
B ank b u ild in g .........................................................................
45 0 ,0 0 0 .0 0
F u rn itu re a n d e q u ip m e n t...................................................
1.00
35,814.81
In te re st e a rn e d , n o t c o lle c te d .....................................
C u rre n t re c e iv a b le s a n d o th er a s s e t s ...........................
36,345.09
$30,2987l 84.43

LI ABI LI TI ES
C a p ita l..............................................................................
$ 1.000,000.00
S u rp lu s.......................................................................................
1,500,000.00
U ndivided p ro fits a n d re s e rv e s ......................................
104,311.87
U n e a rn e d D isco u n t................................................................
23,481.66
D e p o sits....................................................................................
27,6 7 0 ,3 9 0 .9 0
$30,2 9 8 ,1 8 4 .4 3
M em ber F e d e ra l D eposit In s u ra n c e C o rp o ra tio n
E S T A B L IS H E D 1 8 6 8

Northwestern Banker

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Federal Reserve Bank of St. Louis

July Í9 W

62

•
Ju ly 25, 1940, at th e New W illard H o­
tel, W ashington, D. C. Mr. S tein w ill
preside at th e second h e a rin g also.
B oth hearin g s will deal w ith these
exem ptions w ritte n into Section 13(a)
(1) of th e Act—“The provisions of sec­
tions 6 (m inim um w ages) and 7 (m axi­
m um hou rs) shall n o t apply w ith re ­
spect to an y em ploye engaged in a
bona fide executive, ad m in istrativ e,
professional . . . capacity, or in th e ca­
pacity of outside salesm an (as such
term s are defined and delim ited by
regu latio n s of th e A d m in istra to r).”

SAVINGS

AND

LOAN

Commencement Exercises
C om m encem ent exercises w ere held
at New B runsw ick, N. J., Ju n e 28 for
th e largest g rad u atin g class in th e
h isto ry of th e G raduate School of
B anking, educational arm of th e A m er­
ican B ankers A ssociation at R utgers
U n iv ersity devoted to advanced edu­
cation in ban k in g and economics for
b an k executives.
T he 232 officers of banks located in
34 states w ho are m em bers of th e class
of 1940 w ere aw arded diplom as or cer­

EIGHTEEN YEARS
PUBLIC SERVICE
OF

The desire to provide a necessary
com m unity service prompted the or­
ganization of M i n n e s o t a Federal.
Since Nineteen Hundred Twenty-two
this A s s o c ia tio n h as a c c u m u la te d
fu n d s fr o m t h r if t y , fr u g a l f o lk s
in the Northwest to he utilized in
hom e financing. Over twelve thou­
sand hom e mortgages have been made
d u r in g th is e ig h t e e n y e a r p e r io d .

ATjinm&ota 3edeAal
OFFICES

Northwestern Banker

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Federal Reserve Bank of St. Louis

LOAN

IN M I N N E A P O L I S

July 19W

ASSOCIATION
ANI )

SAINT

Dr. Lew is E. Pierson, ho n o rary
ch airm an of th e Irv in g T ru st Com­
pany, N ew York, w ho is ch airm an of
th e B oard of R egents of th e G raduate
School of B anking, p resen ted th e di­
plom as and certificates a fter th e class
h eard an address by Dr. Douglas
Southall F reem an, editor of th e N ew s
Leader, R ichm ond, V irginia.
Follow ing th e precedent established
by th e g rad u atin g classes of previous
years, m em bers of th e 1940 class con­
trib u te d a gift of m oney to th e R utgers
U n iv ersity L ibrary. T his y e a r’s gift
of $1,000 w as p resen ted on behalf of
th e g rad u ates by N elson M cKernan,
a ssistan t secretary of th e M anufactur­
ers T ru st Company, N ew York, and
w as accepted for th e R utgers lib rary
by Dr. R obert C. Clothier, p resid en t of
th e university.

Chase National
The statem en t of th e Chase N ational
B ank for Ju n e 29, 1940, w as m ade pub­
lic Ju ly 2, 1940. T he deposits of th e
b ank on th a t date w ere $3,190,823,000,
again establishing a new high record
for any rep o rtin g date, and com paring
w ith $3,060,769,000 on M arch 30', 1940
and $2,696,486,000 on Ju n e 30, 1939.

On Ju n e 29, 1940, th e capital of the
b ank as $100,270,000 and th e su rplus
$100,270,000', both am ounts unchanged.

RESOURCES OYER $ 1 8 ,0 0 0 ,0 0 0 .0 0

AND

tificates of stu d y for th e ir th ree years
of attendance at th e G raduate School’s
sum m er sessions at R utgers, tw o years
of extension study, and th e ir p re p a ra ­
tio n of theses on specialized subjects
in ban k in g and finance.

T otal resources am ounted to $3,472,779.000 com pared w ith $3,345,528,000
on M arch 30, and $2,983,435,000 a year
ago; cash in th e b a n k ’s v aults and on
deposit w ith th e F ed eral R eserve B ank
and o th er banks, $1,467,007,000 com­
pared w ith $1,522,550,000 and $1,208,138.000 on th e respective dates; in ­
v estm en ts in U nited States securities,
$1,039,031,000 com pared w ith $815,586,000 and $835,045,000; loans and dis­
counts, $607,859,000 com pared w ith
$639,526,000 and $575,427,000.

Those who invest here assist others
as well as them selves, it is only right
that Minnesota m oney should remain
here and produce benefits locally.
Thus Minnesota Federal serves you.

SAVINGS

•

PAUL

T he undivided profits on Ju n e 29,
1940, after deducting $5,180,000 from
th a t account for a sem i-annual divi­
dend payable A ugust 1st, am ounted to
$33,821,000 com pared w ith $36,217,000
on M arch 30, 19401, and $30,819,000 a
y ear ago.
E arn in g s of th e b an k for th e second
q u a rte r of 1940 am ounted to 38 cents
p er share, as com pared w ith 37 cents
earned in th e second q u a rte r a year
ago.

A s Others See Us
Excerpts From Remarks Made at the Annual Stockholders
Meeting of the Federal Home Loan Bank of Des Moines

By W. H. Husband
W ashington,

W.

H.

HU SBA ND

T IS h u m an n a tu re to welcom e
frien d ly approval and to dislike dis­
approval; to seek en d o rsem en t or
com m endation and to avoid criticism
or condem nation. As a m a tte r of fact,
if we w a n t to discover our real m erit,
we need to look to outside sources
ra th e r th a n to inside or related in ­
terests. Only by such ex tern al ob­
serv atio n can we get a tru e p ictu re
of o u r bearings. L ike a ship a t sea
w hich determ in es its position by m eas­
u re m e n t in relatio n to th e sta rs or
o th er rem ote points, we m u st also
look beyond ourselves for purposes
of self-appraisal. I t is in th is sense
th a t th e savings and loan in d u stry of
today m u st determ in e its tru e sta n d ­
ing.
M oreover, by scanning th e
horizon of outside opinion, w e shall
likely obtain m an y ideas p o in tin g th e
w ay to self-im provem ent.
The question im m ediately arises as
to w hose opinion we shall seek. May
I suggest th a t w e give consideration
to th e view s expressed by all groups
w ith sufficient stan d in g to influence
public th in k in g . Some of th ese are
w ell organized w hile o th ers lack a
precise e n tity of th e ir own. Am ong
th e a ttitu d e s th a t we should appraise

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

D,

C.

are those of th e bankers, public su p er­
v isory bodies, th e public a t large, hom e
ow ners, and savers and investors. W e
m u st be w illing to ask ourselves fra n k ­
ly w h a t th ese various groups th in k
of us and th e n form a constructive
opinion of our ow n as to th e course of
action w e shall pursue.
Looking first to th e ban k in g group,
th e p ast tw o y ears has m ark ed th e
developm ent of some ill feelings be­
tw een organized b anking in te re sts and
th e savings and loan in d u stry . F o r
th e m ost p art, th e disagreem ent has
arisen out of legislation w hich has
been proposed to am end th e F ed eral
H om e L oan B ank Act, and also th a t
p a rt of th e N ational H ousing Act
w hich created th e F ed eral Savings and
L oan In su ran ce C orporation. V arious
charges have been m ade ag ain st us,
ran g in g from deceptive ad v ertisin g to
o u trig h t invasion of th e banking field.
P robably m uch of th e criticism arises
as a re su lt of m isu n d erstan d in g of

th e savings an d loan business, but, in ­
stead of reso rtin g to recrim ination, it
is possible th a t we have m ore to gain
by converting th e charges to positive
advantages.
L et m e h asten to say th a t I believe
th e a rg u m en t betw een th e ban k ers
and th e savings an d loan operators
has been confined largely to th e or­
ganized groups an d th a t in v arious
com m unities th ere actually exists a
m ost frien d ly and cordial relationship.
E v en so, if th e organized b an k ers take
th e o p p o rtu n ity to criticize us, we
should tak e advantage of th e ir efforts
and benefit from w h atev er accusations
th ey m ay m ake. F o r intsance, th ey
tell us th a t th e ra te of dividend (please
note I did n ot say th e ra te of in terest)
paid on sh are accounts (observe th a t
I did n ot use th e expression “de­
posits” ) is too high. I t is easy to get
so irk ed by such u n frien d ly criticism
th a t w e m ay overlook its value.
Possibly th e b an k ers are correct in
th e ir view. H ence, in stead of flying
to attack, we m ay b e tte r choose to
accept th e ir verdict.
A n other com plaint by th e b an k ers
is th a t savings and loan associations
(T u rn to page 66, please)

Tri-State Meeting in M inneapolis
By J . Stuart Davis, Associate Editor
HE
six th
Tri-State—M innesota,
N o rth D akota and South D akota—
T
Savings and L oan A ssociation and the
26th M innesota B uilding, Savings and
L oan League C onventions w ere called
to order on F rid ay m orning, Ju n e 14th
a t M inneapolis, by Burch N. Bell,
p resid en t of th e T ri-State A ssociation.
T he address of welcom e w as m ade by
George E. Leach, m ayor of M inne­
apolis, and responses w ere m ade by
Harry C. Lindquist of St. Paul, the
new presid en t of th e Tri-State Asso­
ciation; Martin Jones, p resid en t of the
N o rth D akota League; and O. O. Olson,
vice p resid en t of the South D akota
League.
N ew officers elected by th e Tri-State
Savings and Loan A ssociation w ere
H a rry C. L indquist, St. Paul, presi-

dent; J. Blaine M cKusick, M inneapolis,
vice president; S tanton R. D ahlen,
T hief R iver Falls, secretary; E. R ay­
m ond H ughes, M ankato, director a t
large; and Mrs. D. E. C rary Mudd,
M inneapolis and St. Cloud, secretary
and treasu rer.
D uring th e m orning m eeting ad ­
dresses w ere m ade by Robert J. Rich­
ardson, presid en t of th e Des Moines
F ederal Hom e Loan Bank; Douglas C.
Vaile of Chicago, d irector of E duca­
tion, A m erican Savings and Loan In ­
stitu te; Russell Johnson, presid en t of
Tw in City Chapter; Vern C. Soash,
publicity chairm an, M innesota League,
St. Paul; E. Raymond Hughes, a tto r­
ney, M ankato; William Duncan, Jr.,
secretary of th e M innesota B ankers
Association; and F. A. Amundson, act-

64

• SAVI N GS
ing com m issioner of banks, St. Paul.
T he la tte r tw o addresses by b a n k ers
w ere m ore or less of an inn o v atio n a t
th e m eetings of th e Savings an d Loan
A ssociations, and w ere w ell received.
Seated aro u n d m y table at th e Asso­
ciation w ere C. O. Quail, Fred Cole and
O. O. Olson from Brookings, South Da­
kota; W esley Storms, F irs t Savings
and L oan A ssociation of D uluth; H. B.
Borg, St. Louis C ounty F ed eral Sav­
ings and L oan A ssociation of D uluth;
Maurice H. Jones, M etropolitan Build-

AND

LOAN

ing and Loan A ssociation of Fargo,
N o rth Dakota; Thomas Greenshields,
Gate City B uilding and Loan Associa­
tion of Fargo; John F. Anderson, sec­
re ta ry of th e A lexandria F ed eral Sivdria, Minn.; N. M. Comsolle, Ben
ings and L oan A ssociation of AlexanF ra n k lin F ed eral Savings and Loan
A ssociation of St. Paul; and Kenneth
S. Kerfoot, secretary of th e Ben
F ra n k lin F ed eral Savings an d Loan
A ssociation, and p ast p resid en t of th e
T ri-State Association.

Federal Home Loan Bank of Des Moines
DES MOINES. IOWA
STATEMENT OF CONDITION JUNE 30, 1940
RESO URCES
A d v a n c e s to M e m b e rs .............................................................................................................. §14,369,080.00
U . S. G o v e rn m e n t O b lig a tio n s a n d S e c u ritie s G u a ra n te e d b y U . S ................
1,367,000.00
A c c ru e d I n t e r e s t R e c e iv a b le ...............................................................................................
22,796.79
D e fe rre d C h a rg e s ....................................................................................................................
20,316.32
C ash ................................................................................................................................................ 3,380,965.98

•
Colonel Charles B. Bobbins of Cedar
Rapids, Iowa, arriv ed ju s t in tim e for
luncheon, and H. H. Bennett of th e
P erp etu al Savings and Loan of Cedar
R apids w as also present.
F ro m M ason City, Iowa, came J. W.
Irons of th e M utual F ed eral Savings
and L oan A ssociation.
The rep resen tativ es from North
and South Dakota helped to m ake this
one of th e b est conventions held in
years.
As usual, th e T w in City Associa­
tions w ere w ell represented, and, of
course, have th e rep u tatio n of being
one of th e liveliest groups in th e
country. W h at w ould th e associations
do w ith o u t such m en as John Scott,
Lou Kelley, Roy Larsen, John Koch,
Harry Miller, W. R. Lundquist, Ken
Kerfoot, W. R. Mahood, Axel Olson,
Burch N. Bell, Blaine McKusick, Barry
Lindquist, Vern Soash, an d oth ers w ho
have helped so m uch to p u t Savings
and Loan A ssociations on th e map?

$19,160,159.09
L IA B IL IT IE S
M e m b e rs ’ S to c k S u b s c r ip ti o n . .
G o v e rn m e n t S to c k S u b s c rip tio n
* D e b e n tu re s O u t s t a n d i n g ............
P r e m iu m s on D e b e n t u re s ............
D e p o s its ...............................................
A c c ru e d I n t e r e s t P a y a b l e .........
D iv id e n d s P a y a b le J u ly 6, 1940
S u r p lu s :
R e s e rv e s ..................................... .
U n d iv id e d P r o f its ...................

..........................$ 2,533,000.00
.......................... 7,394,900.00
. ........................ 7,500,000.00
..........................
1,562.50
..........................
981,252.47
..........................
27,554.47
..........................
61,461.06
$471,571.38
188,857.21

H. C. Lindquist, M innesota F ederal
Savings and Loan of St. Paul, w as th e
to astm aster a t th e luncheon.
The
m ain address w as given by J. O. Chris-

660,428.59
$19,160,159.09

^ P a r t ic i p a tio n in $48,500,000 c o n s o lid a te d F e d e r a l H o m e L o a n B a n k d e b e n tu r e s o u t­
s ta n d in g ', w h ic h a r e t h e jo i n t a n d s e v e ra l o b lig a tio n s o f th e tw e lv e F e d e r a l H o m e L o a n
B anks.

P

ONSISTENT adherence to principles mutually favorable to
investor and borrower, has brought strength with age to this funda­
mentally American Home Loan Institution.
A MILLION DOLLAR RESERVE PROTECTS INVESTORS

TH E M I N N E A P O L I S
SAVINGS AND LOAN
A S S O C I A T I O N
S A V IN G S A N D L O A N B U IL D IN G
2 n d A V E N U E S O U T H A T 7t h S T .
J O H N W . H E L M ......................................... P r e s id e n t
F R E D L. E N D S L E Y ,
E x e c u tiv e S e c y , a n d T r e a s.

Resources $18,000.000

Northwestern Banker

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

July 19W

A T T H E T R I-S T A T E C O N V E N T IO N :
U p p e r p ic tu re — V erne C. Soash, m a n a g e r
sa v in g s d iv is io n M in n e so ta F e d e ra l S a v ­
in g s a n d L o a n A s so c ia tio n , S t. P a u l, an d
A. G. M cK night, S t. L o u is C o u n ty F e d e ra l
S a v in g s a n d L o a n A sso c ia tio n , D u lu th .
L o w e r p ic tu re — H arry C. L ind quist, p re s ­
id e n t T ri-S ta te s S a v in g s a n d L o a n L ea g u e,
a n d v ice p re s id e n t M in n e so ta F e d e ra l S a v ­
in g s a n d L o an A s so c ia tio n , S t. P a u l, a n d
J. W. Irons, s e c re ta ry M u tu a l F e d e ra l S a v ­
in g s a n d L o an A s so c ia tio n , M ason C ity,
Iow a.

I
1

65

SAVINGS
tianson, su p e rin te n d e n t of th e U n iv er­

sity F a rm School a t St. Paul, his su b ­
jec t being “The Roots of C ivilization”.
H is speech w as in tersp ersed w ith
am using sto ries and hum or, b u t th e
m ain p a rt w as th a t sound, stro n g a p ­
peal to A m ericanism w hich we all
need so m uch today.
A t th e aftern o o n m eeting th e re w ere
addresses by W illiam Shure, Fargo,
N o rth D akota; A. F. M ortenson,
W aterto w n , South D akota; John W.
Ladd, Illinois division m an ag er of th e
U nited S tates Savings and L oan
League; H. W. F riedlund, arch itect,
C entral B ureau of St. Paul; John F.
Scott, d irecto r U nited States Savings
and L oan League, St. Paul; and Ger­
ald S. B esk in , M inneapolis. T here
w ere also re p o rts from th e follow ing
com m ittees:
A uditing, B. F. P ay, M ankato; Reso­
lutions, H. M. A lygers, Tracy; L egisla­
tive, John F. Scott, St. Paul; P ublic
R elations, L. H. K elley, M inneapolis;
and Publicity, V ern C. Soash, St. Paul.
As u sual th e ladies w ere v ery m uch
in evidence. Those w ho added b eau ty
and g aiety to th e occasion w ere Mrs.
Robert R ichardson and Mrs. B laine
M cA neny of Des Moines; M esdam es
John Koch, Burch N. B ell, R oy W.
L arsen, and M isses A len e E ngstrom ,
E sth er Johnson, C atherine M ootz, Elinore F lem in g and R osam ond F isch —

not fo rg ettin g th e charm in g and cap­
able se cretary of th e T ri-State A ssocia­
tion, Mrs. D. E. Crary Mudd, and M iss
M atilda Gage, se cretary of th e South
D akota League.
T he F ed eral H om e L oan B ank of
Des M oines w as re p re se n te d by its
genial presid en t, R. J. Richardson;
W. H. Lolim an, vice p resid en t and
tre a su re r; J. M. M artin, a ssista n t sec­
re ta ry ; and B laine M cA neny, auditor.
M orton Bodfisli, executive vice p resi­
dent, an d A. D. Theobald, a ssista n t

vice p re sid e n t of th e U nited States
B uilding and L oan League, w ere v ery
m uch m issed. H ow ever, we w ere glad
to have w ith us from th e sam e office
John Ladd and D ouglas V aile.
P ro b ab ly one of th e oldest re p re se n ­
tativ es a t th e convention w as John F.
A nderson, se cretary of th e A lexandriaF ed eral Savings and L oan League.
All in all th e six th T ri-State—M inne­
sota, N o rth D akota and South D akota
—Savings and L oan A ssociation con­
ven tio n w as one of th e b est th a t has
been held, an d everyone w e n t aw ay
w ith new ideas for th e com ing year.

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

AND

LOAN

The officers, th e com m ittees and others
in charge of th e e n te rta in m e n t are cer­
ta in ly to be co n g ratulated for th e ex­
cellent w ay in w hich th e convention
w as conducted th roughout.

Public Relations
In his re p o rt as ch airm an of th e pub­
lic relations com m ittee of th e M inne­
sota League of B uilding, Loan and
Savings A ssociations, Louis H. Kelly,
se cretary of th e H ennepin F ederal
Savings and Loan A ssociation of M in­
neapolis, said:

INSURED

•
“One of th e e rrin g th o u g h ts of h u ­
m an beings is to have th e ir horizon
come rig h t dow n around them . W e
m u st realize th ere are o th er people be­
sides ourselves. B ut w ith th is realiza­
tion certain ly no m an can deny us the
rig h t to capitalize our ow n good w ill
and th is we surely m u st do. W e also
m u st have som ething to w ork for—
som ething to strive for—some incen­
tive, b u t th ere need no longer exist
any fear th a t some sin ister clique o ut­
side m ay atte m p t to steal aw ay from
us th e re su lt of our effort. Therefore,

n s ¥ ~l?
F e d e r a l S a v in c s
and

SAVINGS

Loan A ssociation
of

St. Pa u l

St. Paul, Minnesota

350 Cedar Street

Balance Sheet, June 29, 1940
RESOURCES
First M o rtg a g e L o a n s.........................................................................$2,365,818.87
L o a n s S ecu re d b y P le d g e of A c c o u n ts.....................................
25,144.00
F ed era l H om e L oan B ank S to ck ...................................................
36,600.00
5,476.07
Furniture a n d F ixtu res........................................................................
C a sh on H an d a n d in B a n k s..........................................................
117,072.51
$2,550,111.45

LIABILITIES
S a v in g s & In v estm en t A c c o u n ts................................................... $1,862,037.00
A d v a n c e from F ed era l H o m e L oan B an k ................................
472,049.00
M o rtg a g e L o a n s in P r o c e ss.............................................................
89,480.94
(To be d is trib u te d on h o u se s u n d e r construction)

R ese rv e for D iv id e n d s ........................................................................

26,449.79

(P a y a b le July 1st)

R e se r v e s a n d U n d iv id ed Profits...................................................

100,094.72
$2,550,111.45

Officers and Directors
GERHARD J. BUNDLIE, P resid e n t, A ttorney
THOMAS F. ELLERBE, 1st Vice P resid en t,
A rchitect
JOS. J. MOSHOFSKY, 2nd Vice P resid en t,
P re sid e n t N o rth w e stern H a rd w a re Co.
FRANK E. VILLAUME, 3rd Vice P resid en t,
P resid e n t V illaum e Box & L um ber Co.
HARRY M. MILLER, S e c re ta ry a n d
T re a s u re r

LEONARD M. SMITH, A ss is ta n t S e c re ta ry
WM. HAMM. JR.,
P res, a n d T reas. H am m B rew ing Co.
HERBERT D. RISDON, P res, a n d T reas. RoeJam es G la ss C o m p an y
PAUL STEENBERG,
P res, a n d T reas. P a u l S te e n b e rg
C onstruction Co.

FIRST FEDERAL S A V IN G S c o m e la r g e ly from c o n se r v a tiv e
p e r so n s w h o s e e k m a x im u m sa fe ty a n d fair return, free from
the risks of m arket fluctuation.

WE HAVE ALWAYS PAID 3 PER CENT
Funds Received by the 10th of Any Month Draw Dividends
from the First of the Month

Northwestern Banker

July 19^0

66

. SAVINGS
th is com m ittee w ishes to re p o rt defi­
n ite progress has been m ade w ith our
public relatio n s such as b e tte r u n d e r­
stan d in g w ith our state and national

Hennepin
Federal Savings and Loan
Association of
Minneapolis
F in a n cia l Statem ent
JU N E 30, 1940
A SSETS
F ir s t M o rtg a g e L o a n s ....................... $1,060,026.97
L o a n s S ecu red b y P le d g e of A c­
c o u n ts ..................................................
8,850.00
H om e P u rc h a se C o n tra c ts ................
278,024.10
F e d e ra l H om e L o an B an k S to c k . .
10,500.00
F u rn itu re and F ix t u r e s ....................
719.45
M isc e lla n eo u s A sse ts .....................
2,139.27
R eal E s ta te O w n e d .............................
26,563.66
177,294.82
C ash on H a n d and in B a n k s .........

AND

LOAN

rep resen tativ es, b e tte r U nited States
League relations, b e tte r public u n d e r­
standing, and last b u t n o t least, a defi­
nitely b e tte r com petitive u n d erstan d ­
ing.”

Dividend Payment
A sem iannual dividend of 3 p er cent,
payable Ju ly 1st to m em bers of T w in
City F ed eral Savings & L oan Associa­
tion, M inneapolis, w as announced by
Roy W. L arsen, vice p resid en t of th e
association. A ccording to Mr. L arsen,
th is is th e th irty -six th consecutive divi­
dend to be declared since th e organi­
zation w as founded in 1923.
T w in City F ed eral’s resources have
increased to m ore th a n $11,700,000,
m ak in g th is association one of th e n a­
tio n ’s larg est F ed eral savings and loan
associations. G row th of th e associa­
tion in 1940 is th e larg est of an y sim ­
ilar period in its history.

Ross Retires

$1,564,118.27
On S aturday, Ju n e 15th, in th e ball­
L IA B IL IT IE S
S a v in g s and In v e s tm e n t S h are
room of th e F o rt Des M oines Hotel,
A cco u n ts ............................................ $1,408,131.06
officers of th e Iow a N ational G uard
A d v an ces from F e d e ra l H om e
held
a reception in honor of M ajor
L o an B an k ........................................
N one
G eneral and Mrs. L. D. Ross. Mr. Ross
M o rtg a g e L o an s in P r o c e s s ......................................81,048.03
M isc e lla n e o u s L ia b ilitie s .............
10,291.02
is se cretary of th e P olk County F ed­
RESERVES:
eral Savings and Loan, in Des Moines.
F e d e ra l In s u ra n c e ........................
15,995.64
The occasion of th e reception w as th e
C o n tin g e n cie s ...................................
7,563.47
re tire m e n t of G eneral Ross afte r a long
U n d iv id e d P ro fit and M isc.
R e s e r v e s ..........................................
41,089.05
period of m ost useful leadership in the
$1,564,118.27

Current Rate 3%

ATTRACTIVE
INVESTMENT
Liberal dividends— insured
safety— plus extra security
assured by well financed,
ABOVE average homes.
Assets $ 1, 500, 000.00

PO LK COUNTY
FED ER A L
Savings & Loan Assn.
511 Seventh St.
DES MOINES
M em b er F ed era l H om e Loan B ank S y s te m

Northwestern Banker


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

July 19W

N ational G uard in Iowa.

A S O TH ER S SEE US
(C ontinued from page 63)
have violated th e code of good ethics
in u sing th e term “deposits” to cover
w h a t in reality are sh are accounts.
H ere again, undoubtedely th e re has
been some abuse of th e term inology
by savings an d loan operators, an d
m ore is to be gained by m ending our
practice th a n by adopting tacts of
retaliation.
Incidentally, I m ight
po in t out th a t building and loan asso­
ciations m ay possibly have p rio r claim
to th e term “deposits” th a n have the
banks. I t is m y u n d erstan d in g th a t
th e S tate of Ohio provided for th e
acceptance of deposits by building and
loan associations as early as 1868. As
you know , how ever, th e m utual-de­
posit type of in stitu tio n predom inates
in th a t state.
M ost im p o rtan t is w h a t th e public
th in k s about th e savings and loan b u si­
ness. E ach in stitu tio n needs to ask
itself th e question in a m ost h onest
and searching m anner, “Does m y com­
m u n ity believe in w h a t I am doing and
do I have its com plete confidence?”
As you know , th e depression served
to u n settle public confidence in th e

.
savings and loan business and a large
task of re sto ratio n w as im posed upon
savings and loan m anagem ent. Your
go v ern m en t has helped you m ate­
rially to m eet th is trem endous task.
T he F ed eral c h a rte r has undoubtedly
been of benefit to th e in d u stry a t large
and to th e state in stitu tio n s, th e m ­
selves. T he H om e O w ners’ L oan Cor­
poration and th e U nited States Treas-

W E

O F fE R

1. SAVINGS PLANS

Our b asic p lan of system atic savings
enables you to build your reg u lar littleby-little savings into w orthw hile am ounts
. . . w ith credited dividends speeding
up your goal.
2. INVESTMENT PLANS

For those w ho h a v e substantial sums
of m oney from w hich they desire to
derive a n income, w e offer our basic
type of investm ent w hich is issued in
m ultiples of $100. Dividends are p aid
sem i-annually by check.
3. MORTGAGE LOANS

At current ra te s to Build, Buy, Refinance
or Modernize your home. Long term—
monthly payoff plan.

Ben Franklin Federal Savings
and Loan Association
4th a t Robert St.

St. Paul, M innesota

LEGAL INVESTMENT
For

INSURANCE COMPANIES
Accounts Insured up to $5,000

Convenient . . . Safe
*

3

%

I C u rre n t R ate)

St. Paul Federal
Savings & Loan Association
A xel A. O lson, Sec’y-Mgr.
4 E ast F o u rth St., ST. PA U L , M IN N .

67

Since 1878

LIBERAL EARNINGS
with
SAFETY
Statement on request

W at e rlo o
Building and Loan
Association
East Fifth at Lafayette

W ATERLOO

IO W A

A SAFE INVESTMENT
FOR SURPLUS FUNDS
O u r in v e s tm e n t c e rtific a te s
y ie ld a r e g u la r in c o m e , c u r ­
r e n tly 3 % , a n d tlie ir s a fe ty
is i n s u r e d , u p to $ 5 ,0 0 0 , by
a p e r m a n e n t g o v e rn m e n t
agency.

T w in C ity F e d e ra l
Savings and Loan A ssociation
801 Marquette Ave.
M inneapolis
Established 1923

Resources $11,500,000

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION

O ldest and L argest
in D es M oines
411 6th A ve.

D ial 4-7119

E L M E R E. M IL L E R
P re s , an d Sec.

H U B E R T E. JA M E S
A sst. Sec.

M em b e r F e d e ra l H om e L o an B an k S y stem

UNBROKEN
DIVIDEND RECORD FOR
20 YEARS
□

H O M E

Building and Loan Association
FORT DODGE, IOWA
M em b e r F e d e ra l H om e L o an B an k S y stem


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

u ry m ade direct in v estm en t in savings
and loan associations in an am o u n t of
app roxim ately $270,000,000. To m en ­
tio n one o th er well-recognized facility,
th e in su ran ce of accounts up to $5,000
has done m uch to revive public con­
fidence.
L ike it or not, rates of in te re st on
hom e loans are now a m a tte r of broad
social concern and th e public is de­
m anding econom ical financing.
To
oppose th is sw eeping and engulfing
tre n d is suicidal to th e savings and
loan in d u stry . It is for th is reason
th a t th e business m u st m ake loans of
reasonably long-term m a tu rity and at
ra te s of in te re st consistent w ith th e
prevailing cost of m oney. All too
often, th e re is a tendency to deprive
th e ru ra l and sm all u rb a n areas of the
facilities offered in th e larg er cities.
T his is tru e not only of th e savings
an d loan business b u t it a condition
com m on to m ost fields of enterprise.
F o r exam ple, it m ay be noted th a t in
1938 th e average ra te of in terest
charged custom ers on com m ercial
loans by banks in 19 large cities w as
2.53 per cent; but, in sm aller areas,
bo rrow ers w ere paying 5, 6, and 8 per
cent. A ctually, du rin g th a t year, it
is rep o rted in th e F ed eral R eserve
B ulletin th a t one-fifth of th e m em ber
b an ks received an average of 7 per
cent on th e ir loans.
The savings and loan business
w ould do w ell to take advantage of
th e o p p o rtunities found in th e low
cost housing field. T he term s m u st
n ecessarily be liberal b u t m uch safety
is achieved th ro u g h th e re g u la rity of
m o nthly am ortization. I could speak
a t len g th to show th a t th e real m a rk e t
for residential construction in th e
fu tu re m u st be a t a price u n d er $4,000,
b u t I th in k you are sufficiently fam i­
liar w ith th e u n d erly in g facts. The
im p o rtan t p o in t is th a t th e savings
and loan business realize th e prom is­
ing ch aracter of th is housing m ark et
and take advantage of th e o p p o rtu n i­
ties w hich it presents. I t is easy to
be m isled by th e g re a te r details re ­
q uired in th e handling of sm all loans,
b u t th is overhead can be m et by g re a t­
er volum e and th e pro p er developm ent
of m anagerial technique. As a tim ely
rem inder, we m ay w ell keep in m ind
th e exam ple of autom obile business.
B oth volum e and profits reached th e ir
peak in th e low-priced bracket. T here
is reason to believe th a t sim ilar resu lts
m ay be obtained in th e residential
area.
You m ay w ell in q u ire w h a t the
effect of econom ical hom e financing
w ill have upon savers and investors.
A fter all, we m u st alw ays keep in
m ind th a t it is th is im p o rtan t group
w hich provides th e funds for th e fin­
ancing of homes. M oreover, it re ­
quires th re e or four savers to accom-

- H O ME
Jj
F ederal Savings
A N D LO A N A SSO C IA TIO N
OF DES M O IN E S
— o u r F e d e ra lly I n s u r e d u p to
$ 5 ,0 0 0 sa v in g s a c c o u n ts a re
th e s o lu tio n to y o u r in v e s t­
m e n t a n d t r u s t p ro b le m s .
C u r r e n t d iv id e n d 4 p e r c e n t.

Statement on request.
904 Grand Avenue
Des M oines, Iowa

ASSETS OVER
$ 1, 2 0 0 , 0 0 0 .0 0

Federal Savings
AND

LOAN

A S S O C IA T IO N

OF DES M OINES
216 8th Street

Phone 4-5324

Io w a ’s L a rg e s t B u sin e ss T ra in in g School

M any ‘banks, bond-houses, insurance
com panies and other financial in s ti­
tu tion s em ploy A . I. B. graduates.
W rite or teleph one w hen you need
efficient office em ployes.
E. O. F E N T O N , D irector

American Institute of Business
DES MOINES
10th and Grand
Tel. 4-4221

r
IM M E D IA T E
SA LES

.essing Advertising Co.
Des M o i n e s

68
m odate one borrow er. F o rtu n ately ,
th e an sw er is determ in ed for you
largely by th e m ark et. To often, sav­
ings and loan m anag em en t oppose
prev ailin g m a rk e t conditions an d seek
to m ain tain a dividend record. B ut

rem em ber! P ride goeth before a fall.
T his applies w ith a vengeance to
dividend records as w ell as to the
m ore com m on w ays of day-to-day liv­
ing.

Through Normal Channels

MERCHANTS
MUTUAL

BONDING
COMPANY
Incorporated 1933

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

Des M oines, Iowa

F in an cin g of th e national defense
pro g ram “can and should be carried on
th ro u g h the norm al existing channels
w ith o u t th e creation of new agencies,
m echanism or devices,” banks of the
co u n try w ere told in a letter sent to
m em bers of th e A m erican B ankers As­
sociation th ro u g h o u t th e co u n try by
R obert M. H anes, presid en t of th e
A ssociation, in w hich he urged su p ­
p o rt of th e defense program .
Mr. H anes urged th e banks to “try
in every possible w ay to m ake every
loan th a t has an y th in g to do w ith th e
defense program .”

Your Fault
T here w as a terrib le crash as the
tra in stru ck th e car. A few seconds
later Mr. and Mrs. craw led out of the
w reckage. Mrs. opened h er m outh to
speak, b ut h e r husband stopped her,
“D on’t say a w ord,” he snapped, “I
got m y end of th e car across. You w ere
driv in g the back seat and if you let it
get hit it’s no fau lt of m ine.”

D ES M O IN E S, IO W A

BANKER
AGENTS
WANTED

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

W rite to

E. H. W ARNER
S e c re ta ry a n d M an ag er

Specialized
HARVESTING MACHINERY
1886

1940

Threshers Combines
Corn Pickers
D e p e n d a b le p rod u cts fo r over 5 0
years to H arvest and T h resh all
gra in s and seed s.
A good
ow n ers.

in v estm en t

fo r

farm

A p r o fita b le b u sin e ss fo r d ealers.
S a fe an d d esirab le fa rm p ap er is
p r o fita b le fo r lo ca l fin a n c in g .

□

Wood Bros. Thresher Co.
D e s M oin es, Iow a

Northwestern Banker


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

July 19J0

“The governm ent is launching a
huge program for th e defense of th e
U nited States. I am sure you have
been th in k in g about how th is program
is to be financed and how th e b an k er
can help. T he req uired financing w ill
tak e tw o form s: d irect expenditures
by th e governm ent financed by th e
sale of federal securities, and th e fi­
nancin g of business concerns w hich
have governm ent contracts.
“My own belief and th a t of others
w ith w hom I have discussed this ques­
tio n is th a t both sorts of financing can
and should be carried out th ro u g h th e
norm al existing channels, w ith o u t the
creation of new agencies, m echanism
or devices. The banks of th is co u n try
have th e resources, th e tra in e d p e r­
sonnel and th e know ledge of th e ir own
com m unities, w hich equip them , along
w ith th e in v estm en t m arkets, to h a n ­
dle a v ery large p a rt of th e necessary
financing. T his financing can be car­
ried out in such w ays as w ill enable
th e b anks to provide an adequate vol­
um e of loans and at th e sam e tim e
safeguard th e funds of th e ir deposi­
tors.
“All banks should be actively and
energetically soliciting every sound
loan in th e ir com m unities. Especially
is it tru e th a t th ey should try in every
possible w ay to m ake every loan th a t
has a n y th in g to do w ith th e defense
program .
“In p resen tin g these view s to Con­
gress, th e A dm inistration, and th e pub­
lic, y o ur officers w ill be reassu red if
th e y can feel th a t th e y have th e con­
cu rren ce and su p p o rt of th e m em ber­
ship of th e A ssociation. T herefore, if
you agree I shall appreciate it if you
w ill telegraph me to th a t effect im m e­
diately.”

T he oldest m u tu a l co m p an y of
its k in d in A m erica offers lib e ra l
agency co n tracts covering—

• AUTO INSURANCE
• TORNADO INSURANCE
• TOWN DWELLING
INSURANCE
• HAIL INSURANCE
on growing crops
O ver $1,000,000 cash su rp lu s -—
47 years of pro v en p ro tectio n .
W rite for our liberal proposition to
bank representatives.

T

HE keen executive equips his

clerical force

with

G-F Goodform

chairs of alum inum.

He knows it's

good business to keep his office help
comfortable and relaxed.

KOCHBROTHERS
PRIMERS - B00HBII1DER5 - OFFICE OUTFITTERS
STRTI0I1ERS - BUSII1ESS mflCHHIES

G R A n D flVEflUE

AT FOURTH

69

In San Francisco
T he 39th a n n u al convention of th e
A m erican In stitu te of B anking w ill be
held in San Francisco, C alifornia, Ju n e
2-6, 1941, it is announced by J. L. Dart,
p resid en t of th e In stitu te . The St.
F ra n c is H otel w ill be h e a d q u a rte rs for
th e convention.
T he A. I. B. is th e educational sec­
tio n of th e A m erican B an k ers Asso­
ciation. More th a n 47,000 b a n k em ­
ployes, stu d y in g in In s titu te chapters,
c h ap ter branches, and stu d y groups in
385 cities th ro u g h o u t th e co u n try are
enrolled in its classes on B ank O rgani­
zation and O peration, Law, Econom ics,
A ccounting, M oney and B anking,
C redit A d m inistration, B ank A dm inis­
tratio n , In v estm en ts, and T rusts.

and resources of $851,180,426 show n on
Ju n e 30, 1939.
Cash and due from banks is listed at
$250,650,149, as against $252,770,947 a
y ear ago. U. S. governm ent securities
stands at $306,873,709; one year ago it
w as $270,278,537. L oans and bills p u r­
chased is $203,332,207, w hich com pares
w ith $199,306,522 a y ear ago.
P referred stock is show n as $8,749,520, com m on as $32,998,440, and su r­
plus and undivided profits as $40,151,109.
N et o perating earnings for th e six
m onths ending Ju n e 30, 1940, a fter
am ortization, taxes, etc., as w ell as divi­
dends on p referred stock, am ounted
to $3,137,020 or $1.90 a sh are as com­
pared w ith $3,071,315 or $1.86 a share
for th e corresponding period last year.

Not So Nuts
T he su p erin ten d en t of an insane
asylum noticed an inm ate pushing a
w heelbarrow upside down.
“W hy do you have it upside dow n?”
asked th e su p erintendent.
“You don’t th in k I ’m crazy, do you?”
w as th e reply. “I pushed it rig h t side
up yesterd ay and th ey k ep t filling it
w ith gravel.”

Policyholders Mutual
Casualty Company
L e g a l R e s e r v e — Ma ximu m S e r v i c e
Home Office: W est L iberty, Io w a
B usiness Office: Des M oines, Io w a
•

F u ll C overage A u to m o b ile
A ccident and H e a lth

Manufacturers Trust

Dividend

The sta te m e n t of condition of M anu­
fa c tu re rs T ru s t C om pany as of Ju n e
29, 1940, show s deposits of $792,181,954
and resources of $889,091,344. T his
com pares w ith deposits of $735,645,748

The 170th consecutive dividend of
T he N o rth ern T ru st Com pany, Chi­
cago, w as declared payable Ju ly 1, con­
tin u in g th e an n u al ra te of $18.00 per
share.

A g e n c y In q u irie s In v ite d

AUTOMOBILE INSURANCE

tfnòax O b c
A

A l l e n W a l e s A d d i n g - M a c h i n e C o r p ..........
A . C. A l l y n a n d C o m p a n y .................................
A m e r i c a n I n s t i t u t e o f B u s i n e s s ..................
A m e r i c a n N a t i o n a l B a n k a n d T r u s t Co.

71
32
67
57

B

B a n k e r s T r u s t C o m p a n y ............................. 50-5 1
B e n F r a n k l i n S a v i n g s a n d L o a n A s s ’n . . 66
B r e w e r C o m p a n y , V . W ................................... 30
C

C e n tra l N a tio n a l B a n k a n d T r u s t C o ...
C ity N a tio n a l B a n k a n d T r u s t C o m p a n y
C o m m e r c e T r u s t C o m p a n y ..............................
C o m m ercial In v e s tm e n t T r u s t C o m p an y
C o n tin e n ta l Illin o is N a tio n a l B a n k an d
T r u s t C o m p a n y ................................................
C o n t i n e n t a l N a t i o n a l B a n k ............................

3
38
56
28
33
39

I)
D a v e n p o r t a n d C o m p a n y , F . E ..........3 6 - 3 8 - 5 6
D e s M o i n e s B l d g , L o a n & S a v i n g s A s s ’n 67
D r o v e r s N a t i o n a l B a n k ...................................... 55
E
E m p l o y e r s M u t u a l C a s u a l t y C o m p a n y . . 69
E p p l e y H o t e l s C o m p a n y ................................... 58
F

F a r m e r s M u t u a l H a i l I n s u r a n c e A s s ’n
o f I o w a ....................................................................
F e d e r a l D i s c o u n t C o r p o r a t i o n .......................
F e d e r a l H o m e L o a n B a n k o f D es M o in es
F i r s t F e d e r a l S a v i n g s & L o a n , S t. P a u l
F i r s t N a t i o n a l B a n k , C h i c a g o .......................
F i r s t N a t i o n a l B a n k , O m a h a .......................
F i r s t N a t i o n a l B a n k , S i o u x C i t y ..................
F ir s t N atio n al B an k an d T ru st C om ­
p a n y , M i n n e a p o l i s ...........................................
F i r s t W i s c o n s i n N a t i o n a l B a n k ..................

A
J
J a m i e s o n a n d C o m p a n y ......................................

32

K
K i r k e b y H o t e l s G r o u p ........................................
K o c h B r o t h e r s .......................................................

52
68

44
48

4
31
67
61
37
40

M
M c G u i r e , W e l c h a n d C o m p a n y ....................
M e r c h a n t s N a t i o n a l B a n k ..............................
M e rch a n ts M u tu al B o n d in g C o m p a n y ..
M in n eso ta F e d e ra l S av in g s a n d L o an
A s s o c i a t i o n ..........................................................
M i n n e a p o l i s M o l i n e I m p l e m e n t C o ..........
M i n n e a p o l i s S a v i n g s a n d L o a n A s s ’n . . .
M o rtg ag e In v e stm e n t C o rp o ra tio n ....

29
2
68
62
42
64
30

N
N a t i o n a l B a n k o f D e t r o i t ................................
N o r t h e r n T r u s t C o m p a n y .................................
N o r t h w e s t e r n N a t ’l L i f e I n s u r a n c e C o . .

46
60
46

O m a h a N a t i o n a l B a n k ........................................

19

S

S e c u r i t y N a t i o n a l B a n k ...................................... 58
S t. P a u l F e d e r a l S a v i n g s & L o a n A s s ’n 66
T

G e n e r a l M o t o r s A c c e p t a n c e C o r p o r a t i o n 26

T w i n C i t y F e d e r a l S a v g s . & L o a n A s s ’n 67
U

27
69
66
69
67
67
6
39

I
I o w a -D e s M o in es N a tio n a l B a n k a n d
T r u s t C o m p a n y ................................................ 72
Io w a In v e s tm e n t B a n k e rs A sso ciatio n . . 5

JlawLe&t Q adt
O ur p o lic y p ro v id es a m a x im u m
assessm en t o f 2 */2 % in Z ones
O ne and T w o— and S / 2 % in
Z on e T h ree (W estern Io w a ).

Hawkeye Mutual Hail
Insurance Association
C arver B ld g .

F ort D o d g e, Iow a

P
P h i l a d e l p h i a N a t i o n a l B a n k ......................... 24
P o l i c y h o l d e r s M u t u a l C a s u a l t y C o .......... 69
P o lk C o u n ty F e d e ra l S av in g s and L o an
A s s o c i a t i o n ............................................................ 66

G

H
H a l s e y , S t u a r t a n d C o m p a n y , I n c ...............
H a w k e y e M u t u a l H a i l I n s u r a n c e A s s ’n
H e n n e p i n F e d e r a l S a v i n g s & L o a n A s s ’n
H o l l e y , L. W . a n d S o n s ......................................
H o m e B u i l d i n g a n d L o a n A s s ’n ..................
H o m e F e d e r a l S a v i n g s a n d L o a n A s s ’n .
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l W e l l i n g t o n ..................................................

DES MOINES

L
L a M o n t e a n d S o n , G e o r g e ............................
L a m s o n B r o t h e r s a n d C o m p a n y ..................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................
L ive S to ck N a tio n a l B an k , C h i c a g o . .. .
L ive S to ck N a tio n a l B an k , O m a h a . . . . . .
L ive S to c k N a tio n a l B a n k , S io u x C ity . .

o
68
29
64
65
59
36
53

EMPLOYERS MUTUAL
CASUALTY COMPANY

U n i t e d F e d e r a l S a v i n g s a n d L o a n A s s ’n 67
U n i t e d S t a t e s C h e c k B o o k C o m p a n y . . . . 38
U n i t e d S t a t e s N a t i o n a l B a n k ......................... 34
V

V a l l e y S a v i n g s B a n k ........................................... 54

w
W a n t A d .......................................................................
W a l t e r s C o m p a n y , C h a r l e s E .........................
W a t e r l o o B u i l d i n g a n d L o a n A s s ’n ..........
W e s s l i n g S e r v i c e s ................................................
W e s te rn M utual F ire In su ra n c e C o ....
W ood B ro th ers T h resh er C o m p a n y ....

57
37
67
54
23
68

WHY
DO IT FOR NOTHING?
T o o m an y in stitu tio n s are absorbing
the c o st of han dling

NON-PROFIT ITEMS
U s e our N o. 366 A D V I C E O F
CHARGE
and 441 M O N T H L Y
B A L A N C E C H A R G E b ook s — 336
triplicate tran saction s in each.
W e are always glad to send
sam ple sheets

L. W. Holley & Sons Company
Compl ete Bank Outfitters
100 E a s t G rand

Des M oines, Iow a

N orthwestern Banker

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

July 19k0

70

In t h e D ir e c t o r s ' R o o m
Diplomatic
Boy: “A nd now, doctor, th a t I ’ve
told you I am going to m a rry Anne,
th e re ’s one th in g I w an t to get off m y
chest.”
Doctor: “W h at is it, m y boy?”
Boy: “A tatto o ed h e a rt w ith th e
nam e Mabel on it.”

Off Color
“T h e re ’s only one th in g w ro n g w ith
me, blondie, I ’m color blind.”
“You’all sho’ m u st be, m istah!”

Cheap Skate
P atien t: “I h ate to m ention, b u t m y
wife th in k s th e fee you charged for m y
operation w as fa r too h ig h .”
Surgeon: “But, m y dear sir, surely
you do not set th e sam e low value on
y o u r life th a t y o u r w ife does?”

Can't Be That Smart
A sm art m an is th e one w ho h a s n ’t
let a w om an pin a n y th in g on him since
he w as a baby.

Here's An Idea
“A re you Jo h n A. V an D orky?”
asked th e young m an beside th e coatrack.
“No,” w as th e su rp rised reply.
“W ell, I am ,” cam e th e fro sty rejo in ­
der, “and th a t is his overcoat you are
p u ttin g on.”

Hi, Kid
Sally: “I w as out last n ig h t w ith a
perfect stra n g e r.”
Betty: “W here did he hail from ?”
Sally: “A cute yellow ro ad ster.”

Disconcernment

Left in a Hurry

W e Wonder, Too
H usband: “H ave you ever w ondered
w h at you w ould do if you had Rocke­
feller’s incom e?”
Wife: “No, b u t I have often w on­
dered w h at he w ould do if he had
m ine!”

They Always Do
“I ’m glad y o u ’re so im pressed dear,
by all these explanations I have been
giving you about b an king and econom ­
ics,” rem ark ed th e young husband.
“Yes, darling. I t seem s w onderful
th a t anybody could know as m uch as
you do about m oney w ith o u t having
an y .”

The Real Reason
T here had been an auto accident.
The policem an arriv ed to tak e notes.
“Look h ere,” said one of th e d rivers
angrily, “I clearly had th e rig h t of
way. T his m an h e re ”—he pointed to
th e o ther d riv er—“ra n into me. Now
you say th a t I w as to blam e.”
“A nd you certain ly w ere,” insisted
th e policem an.
“B ut w hy, officer?” pleaded th e
driver.
“Because his fa th e r is m ayor, his
b ro th e r is chief of police, and I ’m
co u rtin g his sister.”

Correct

A v isito r a t th e capitol w as accom ­
panied by his sm all son. The little boy
w atched from th e gallery w hen th e
H ouse cam e to order.
“W hy did th e m in iste r p ray for all
those m en, Pop?”
“He d id n ’t. He looked th em over
an d pray ed for th e co u n try .”

A v isito r called at a doctor’s house.
“Is y o u r fa th e r at home, dear?” he
asked th e doctor’s sm all daughter.
“No, h e’s out, giving an an esth etic.”
“An anesthetic! T h a t’s a big word.
W hat does it m ean?”
“Ten dollars,” w as th e reply.

Homelike

Final

Hard-boiled d rill serg ean t to m arried
recruit: “B utto n y e r coat!”
R ecru it (absently): “Yes, dear.”

Snappy Com eback
Sm ith: “W hy do radio an n o u n cers
alw ays have stubby fingers?”
Jones: “Because th e y need sh o rt
paw s for statio n identification.”

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

“H ow are you gettin g on w ith your
affair w ith Alice?”
“N ot so bad. I ’m gettin g some en ­
co uragem ent.”
“She’s beginning to sm ile on you, is
she?”
“N ot yet, b u t last n ig h t she told me
she h ad said ‘No’ for th e last tim e.”

The business m an dashed into th e
em ploym ent agency.
“Look h ere,” he said to th e clerk,
“I ’m looking for a cashier.”
The clerk looked som ew hat su r­
prised.
“W hy, sir,” he said, “I th o u g h t I
fu rn ish ed you w ith one last w eek.”
“I know ,” cam e th e irrita b le reply.
“T h a t’s th e one I ’m looking for.”

Smart Boy
F ath er: “You lazy boy! W h at w ould
you have done if you had been b ro u g h t
up am ong people w ho lived by th e
sw eat of th e ir brow s?”
Son: “I w ould have sold them pocket
handkerchiefs!”

Keeping His W ord
T he landlord called for his ren t,
w hich w as m any w eeks overdue.
“I ’m so rry ,” said th e ten an t, “b u t
I can’t pay you th is w eek.”
“B ut you said th a t last w eek, and
several w eeks before th a t,” snapped
th e landlord.
“Yes, and did n ’t I keep m y w ord?”
replied th e te n a n t blandly.

She Fooled Him
T he girl about to trav el alone w as
w arned n o t to ta lk to stran g e m en. A t
t h e statio n th e conductor asked:
“W here are you going?” “To De­
tro it,” she answ ered, so he p u t h e r on
a D etroit train . As th e tra in pulled
out, she looked and said, “Ha, ha, I
fooled him th a t tim e. I ’m going to
Chicago.”

For a Dime
“Lady, if you give us a nickle m y
little b ro th e r’ll im itate a h en.”
“W h a t’ll he do?” asked th e wom an,
“cackle like a h en ?”
“N aw,” replied th e boy in disgust.
“H e w ouldn’t do a cheap im itation like
th at. H e’ll eat a w oim .”

Persistent
Miss Sm ith: “Did th a t course in
E nglish help your boy friend any?”
Miss Tellm an: “No, he still ends
every sentence w ith a proposition.”

There is more to an adding machine
than appears on the surface—
look into an Allen Wales—try one,
there is no obligation.
ALLEN WALES ADDING MACHINE CORPORATION
444 Madison Avenue, New York, N. Y.
SALES AND SERVICE IN 4 0 0 AMERICAN CITIES AND IN 4 0 FOREIGN COUNTRIES
M an ufacturers o f A d d in g M a c h in es S in ce 1 9 0 3

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

r

these a d v a n ta g e s . .

COIHPLETE mODERR fflCILITIES!
E X P E R I E I 1CED P E R S O n n E L !

MEMBER FED ER A L DEPO SIT
IN SURAN CE CO RPORATION


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