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JULY
1941
O . G. J O N E S
P r e s id e n t, G oodhue C o u n ty N a tio n a l B a n k , R ed W in g
P r e s id e n t, M in n e s o ta B a n k ers A s s o c ia tio n
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Federal Reserve Bank of St. Louis
How to Serve the Public at a Profit
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In C edar R apids, Iow a's grain center, THE MER
CHANTS NATIONAL BANK, b e c a u se of its strategic
location, direct con n ection s a n d sixty y ea rs of experi
en ce, is a b le to offer u n ex c e lle d service to banks
throughout the M iddle W est. The M erchants N ational
solicits your b an k in g b u sin ess.
A CEDAR R A P ID S BA N K
CEDAR
R A PID S
SERVICING A LL IOWA.
MERCHANTS
NATIONAL BANK
m
OFFICERS
n.
ir
1# DL
IJ&r. i
J am es E. H am ilton , Chairman
S. E. Coquillette, President
H. N. B oyson , V ice P resident
R oy C. F olsom , V ice P resident
Mark J. Myers , V. P res. & Cashier
George F. M iller, V. P res. & Tr. Officer
Marvin R. S elden , V ice P resident
F red W. S m it h , V ice President
J o h n T. H amilton II, V ice President
R. W. Man att , A sst. Cashier
L. W. B roulik , A sst. Cashier
P eter B ailey , A sst. Cashier
R. D. B row n , A sst. Cashier
O. A . K earney , A sst. Cashier
S tanley J. M ohrbacher , A sst. Cashier
E. B. Zba n e k , B uilding M anager
iÇj
m
u
Cedar Rapids
Iowa
Member Federal Deposit Insurance Corporation
N o r th w e ste r n B an k er, p u b lish e d m o n th ly b y th e D e P u y P u b lis h in g C om pan y, In c ., a t 527 7th S treet, D e s M o in e s, Io w a .
S u b sc r ip tio n , 35c per cop y, $3.00 per y ear. E n tere d as s e c o n d -c la s s m a tter at th e D e s M o in e s p o st office. C o p y r ig h t, 1941.
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Federal Reserve Bank of St. Louis
3
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Federal Reserve Bank of St. Louis
4
THE CH A S E
NATIONAL BANK
O F
THE
CITY
OF
N EW
YORK
S ta te m e n t o f C o n d itio n , J u n e 3 0 , 1 9 4 1
RESO URCES
C ash a n d D u e from B a n k s .....................................
$ 1 ,3 1 1 ,0 0 4 ,5 7 5 .0 2
U . S. G o v e r n m e n t O bl ig a t io n s , direct and f u l l y g uaranteed
1 ,4 37,224,912.17
S tate a n d M u n ic ip a l S e c u r i t i e s .........................
12 2 ,8 6 7 ,0 3 5 .3 4
S tock of F ederal R eserve B a n k .........................
6 ,0 1 6 ,2 0 0 .0 0
O t h er S e c u r i t i e s .......................................................
163,109,750.33
L o a n s , D isc o u n t s and B a n k e r s ’ A cceptances
7 7 3 ,392,278.82
B a n k in g H o u s e s .............................................................
3 8 ,4 0 8 ,3 5 5 .3 6
O t h e r R eal E s t a t e .................................................
7 ,066,325.35
M o r t g a g e s ..........................................................................
1 0 ,4 9 5 ,5 3 4 .0 0
C u st o m e r s ’ A cc eptan ce L ia b il ity
. . . .
9 ,5 9 7 ,2 1 6 .0 0
O t h e r A s s e t s ....................................................................
9 ,9 7 8 ,3 5 4 .2 7
$ 3 ,8 8 9 ,1 6 0 ,5 3 6 .6 6
L IA B IL IT IE S
C apital F u n d s :
C apital S t o c k ..............................................................
Sur plu s
$ 1 0 0 ,2 7 0 ,0 0 0 .0 0
..........................................................................
10 0 ,2 7 0 ,0 0 0 .0 0
U nd ivided P r o f i t s .................................................
3 7 ,1 8 3 ,1 0 0 .3 5
$
D iv id en d P ayable A u g u st 1. 1941
.
.
.
2 3 7 ,7 2 3 ,1 0 0 .3 5
.
5 ,1 8 0 ,0 0 0 .0 0
R eserve for C o n t i n g e n c i e s .....................................
10,650,665.72
R eserve for T a x e s , I n t e r e st , etc .........................
1,595 ,8 1 5 .6 4
D e p o s i t s ..........................................................................
3 ,6 1 5 ,4 2 7 ,5 2 8 .4 1
A cceptan ces O u t s t a n d i n g .....................................
11,454,611.11
L ia b il it y as E ndorser on A cceptan ces a n d F oreign B ills .
O t h er L i a b i l i t i e s ........................................................
.
275,9 4 9 .5 9
6 ,8 5 2 ,8 6 5 .8 4
$ 3 ,8 8 9 ,1 6 0 ,5 3 6 .6 6
U n it e d S t a te s G o v e r n m e n t a n d o t h e r s e c u r itie s c a rr ie d a t $ 1 6 2 ,9 2 7 ,9 3 0 .0 0 a r e p le d g e d t o s e c u r e
p u b lic a n d t r u s t d e p o s it s a n d f o r o t h e r p u r p o s e s a s r e q u ir e d o r p e r m it t e d b y la w .
Member Federal Deposit Insurance Corporation
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly 19M
• • • •
BY AMERICA'S LARGEST BANKS
The dem and for La M onte S afety P apers is a s w id e
a s the nation— and a s d eep a s m an's desire to sa fe
guard the funds h e p la c e s in transit w h en h e m ails
or hands over a c h e c k .» » H ere is a check paper
w hich d efies alteration and counterfeiting— a s d is
tinctive a s a crisp n e w bank n ote— recogn ized , the
nation over, a s the standard of sa fety for check pro
tection. » » W hen y o u u se La M onte Safety Paper,
you join the ranks of the largest and m ost su ccessful
organizations of their kind in the world. For more
than 75% of A m erica's lea d in g b a n k s — a s w ell as
outstanding corporations from coast to coast — are
regular users of La M onte Safety Papers. » » If you
desire the utm ost in sa fety and distinction, w e w ill
b e gla d to work w ith yo u and your lithographer or
printer in d ev elo p in g for y o u an individual trade
mark d esig n incorporated in the paper itself.
GEORGE LA MONTE & SON
N u tle y .......................................... N ew Jersey
THE SAFETY PAPER
W ITH THE W A V Y
LINES
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Federal Reserve Bank of St. Louis
6
INSURANCE
IS AW AKE
TO DEFENSE
The veteran job of Insurance is to reimburse loss and
replace when deadly hazards cripple defense machinery.
A c r o s s a c o u n t r y of farms and industrial
But Insurance wields another weapon-Engineering Knowl
edge—wh ch eliminates many hazards before they strike.
sites, men in insurance support a nation
wide program of defense. They are a civilian
personnel, trained during peace to wage
permanent w a r a g a in st m any h a za rd s
threatening vital property and industrial
progress. Insurance, their calling, is a main
spring of defense, as vital to it as tractors to
the soil, as machine tools to metal. To pro
duction it is moral solder: assurance that a
nation’s insurance reserve stands solidly be
hind the machinist, the millwright,thewelder.
Periodic inspection of plants frequently turns up harmful
conditions in time to ayert disaster.
In this w ay insurance fosters teamwork and
helps to speed production, thereby strength
ening the implements of defense.
Insurance laboratories pre-test consumer products to pre
vent civilian danger and distress.
■
Insurance stiffens family morale by reducing hazard and
providing compensation tc workmen when injured.
=52 H O M E
* * *
INSURANCE
COMPANY
NEW Y ORK*
* *
The Home, through its agents and brokers, is Am erica’s leading insurance
protector of American Homes and the Homes of American Industry
FI RE,
AUTOMOBI LE
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Federal Reserve Bank of St. Louis
A ND
MARI NE
INSURANCE
Insurance reserve dollars are widely invested,and become
bone and muscle to the ramparts of production.
noiA hwe/ tern
J U L Y
19 4 1
FO RTY-SIXTH Y E A R
NUM BER 648
Oldest Financial Journal West of the Mississippi River
C LIFFO RD DE PUY
Publisher
IN THIS ISSUE
R A L P H W. M O O R H E A D
Associate Publisher
Editorials
A c ro s s th e D e sk f ro m th e P u b l i s h e r .............................. ...............................................................
8
H EN R Y H . H A Y N E S
Feature A rticles
Editor
F r o n tis p ie c e .......................................
J. STUART D A V IS
Associate Editor
10
H o w to S e rv e th e P u b lic a t a P r o f i t.................................... ........................... J o h n B u rg e ss 11
B a n k e r s C o n c lu d e T h r e e S t a t e C o n v e n tio n s ........ ............................ H e n ry H . H a y n e s 12
M in n e s o ta C o n v e n tio n P i c t u r e s ....................................
13
527 Seventh Street,
N o r th D a k o ta C o n v e n tio n P i c t u r e s .............................................................................................. 15
Des Moines, Iowa
S o u th D a k o ta C o n v e n tio n P i c t u r e s ................................................................................................. 17
Telephone 4-8163
K u r r e n t K a lte n b o r n K o m ra e n t..................
18
W h a t B a n k e r s T h in k o f C u r r e n t B a n k in g P r o b le m s ........... ....D orothy L . M a n u el 20
N e w s a n d V ie w s ........................................... ........................................................ C lifford D e P u y 21
N EW Y O R K O FFICE
Insurance
Frank P. Syms
I t ’s th e B u sy P ro sp e c t W ho H a s th e M oney to B u y ....................... Clyde W . Y o u n g 23
Vice President
505 Fifth A ve.
Suite 1 202
Telephone MUrray Hill 2-0326
Bonds 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 ..... .............. .
M IN N E A P O L IS O FFIC E
B u ild in g U p a R a in y - D a y R e s e rv e ..__ ____
J a m e s H . C larke 27
........... ................ .
32
Jos. A . Sarazen
Associate Editor
State Banking News
Telephone Hyland 0575
N e b r a s k a N e w s ......................................................
O m a h a C le a r in 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 __ _____________________
CONVENTION CALENDAR
M in n e s o ta N e w s ...................................................
A m eric a n B a n k ers A s s o c ia tio n — H o te l
S te v e n s , C h ica g o , S ep tem b er 28-O cto b er 2.
N o rth
F in a n c ia l A d v e r tis e r s A s s o c ia tio n —
H o te l S ta tle r , C lev e la n d , S ep tem b er
Io w a N e w s ................................ ...................... .........
8 - 11 .
T w in C ity N e w s .................. ......... .................
D a k o ta N e w s ____________ __________
Io w a J u n i o r B a n k e r s P i c t u r e s _______
N a tio n a l A s s o c ia tio n of B an k A u d i
to rs and C o m p tr o lle rs 17th A n n u al
N a tio n a l M e e t'— C h ica g o , I llin o is ,
O c to b e r 8-11.
B a n k e r s o f Io w a , I n c o r p o r a t e d ______
Io w a N e w s f r o m H e r e a n d T h e r e ........ .
B a n k e r s T r u s t I n s t a ll s N e w F i x t u r e s
..... ......................
...........................
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............ ...............
J. A . S a r a z e n
...........................
35
37
39
41
43
45
47
49
55
56
59
60
STATE C O N V E N T IO N S
I o w a — H o te l F o r t
tem b er 8-9-10.
D es
M o in e s,
S ep
N eb ra sk a — P a x to n H o te l, O m ah a, O c
to b er 9-10.
The Directors" Room
A F e w S h o r t S to rie s to M a k e Y o u L a u g h ..
66
M EM BER
Audit Bureau of Circulations
Financial Advertisers Association
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Federal Reserve Bank of St. Louis
Across the Desk
From the Publisher
W hatever our business
and economic relations
m ay be w ith the South
A m erican countries in the
fu tu re, th ey have not been so good in the past.
A m erican business men have asked fo r imme
diate paym ent of th eir m erchandise instead of
extending credit—they have shipped “ seconds”
or in ferio r products, and it will take some tim e
to overcome this criticism of Am erican business
men by South A m erican purchasers.
R ecently we had a le tte r from a friend of ours
who lives in Buenos Aires, and this is w hat she
s a id :
You Refusing to Take Deposits?”
“ All that you said about any possibility of a
close alignment with South America is true, es
pecially so in Argentina, Several Argentina news
paper men have told me the same thing. They are
Latin and want to stay that way. Their ideas are
entirely different and they are anxious to remain
so. Americans (North) are very unpopular in gen
eral because of the shady business deals which
they have put over in South America, For in
stance, shipments must be paid for in advance (un
like England and Germany). Then the goods will
be inferior in quality and there is nothing that can
be done. ‘They dump all their seconds on us,’
one lawyer said, ‘while Germany and England
treat us like first class customers.’ No question
but what this is true. Try to find a pair of Ameri
can made stockings without a flaw for instance.
Odds and ends of colors and sizes which are not
and can’t be sold at home. Only a small example.
These people may not have our character or
strength, certainly not our moral standards about
marriage, but they have great pride and a sense
of honor when treated fairly. They are hurt by
our bad manners. Of course, each of us can learn
A greeing w ith us on this very im p o rtan t ques
tion is H enry Visser, cashier of the F irs t N ational
B ank of H aw arden, who in the le tte r to us said,
“ I ju st co u ld n ’t help b u t read the editorial en
titled “ Are You R efusing to Take D epo sits” in
the Ju n e issue of the N o r t h w e s t e r n B a n k e r .
Your rem arks th a t this is no time to refuse deposits,
is one th a t everyone in the business ought to di
gest, F o r the p ast several years, especially since
1933, I have m aintained th a t the banks should
qualify as an asset to every com m unity by offer
ing every service possible to the patro n s in the
territo ry . The acceptance of a deposit from any
one or a group of individuals is a distinct service
and even more of a service now since the in au g u
ration of the FD IC and when investm ents are d if
ficult to find by the average laym an.
“ The sm all cost th a t the average bank finds it
necessary to pay to ca rry these deposits is a m inor
item com pared to the p otential loss of business
possible during the n ex t 5 or 10 years. B anks
are not institutions th a t ca rry on from y ear to
year b u t should be institu tio n s to c a rry on from
decade to decade and even for longer periods. The
Our South
American Policy
Not So Good
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly 19JÍ
from the other but I doubt if we can ever get
very close as nations. ’’
Thus, our South A m erican policy in the past
has not been so good b u t m aybe we can correct it
in the fu tu re — certainly we will have to if we ex
pect to secure the business and increase our trad e
w ith our South A m erican neighbors.
In the Ju n e issue of
Consider Customers
the
N o rth w estern
As Guests of
B a n k e r we discussed
Your Bank
the q u e s t i o n ,
“ Are
9
bank th a t m easures its profits only on the basis
of this year, last year, or even n ex t year, to me is
like the pig th a t hogged all the feed and was the
first one to go to m arket.
“ I am very m uch in accord w ith your sta te
m ent th a t every custom er should be considered
as a guest of the bank and tre a te d as such. To
refuse a guest a common everyday favor certainly
is a positive w ay of severing all fu tu re relations
and encourages him to go elsew here to tra n sa c t
his business.
“ I sincerely hope this p a rtic u la r editorial is
read by m any of the guilty and th a t it will have
a tendency to correct a serious m istak e.”
I f banks refuse deposits today when they are
p len tifu l and the in tere st rates are low, the tim e
m ay come when in terest rates are high, and b an k
ers are v ery desirous to secure deposits, and then
the custom er who has been refused bank services
m ay not be so w illing to open an account.
C ertainly, if you consider your custom ers as
guests of your bank and tre a t them as such, you
have no need to w orry about the present or fu tu re
relationship betw een yourself and your commu
nity.
W hatever m ay be said of
the capitalistic system, and
any fa u lts or defects which
it m ay have, shrink into in
significance and are lost in the oblivion of the past,
com pared to the m odern union labor racketeer.
He rules like a dictator.
He seeks economic gain a t the cost of national
defense.
He cares not a tin k e r ’s dam n about the country
w hich has done more for labor th a n any nation
on earth.
He grabs and gets and steals and uses every
know n device to force m oney into his coffers
w hether his cause is ju st or not.
He fom ents strikes and forces men into unions
so the dues m ay increase his personal income.
This is not the Am erican w ay of life.
A concrete exam ple of this w as given recently
by a D uluth, M innesota, food shop, which has
gone out of business, and in announcing the re a
sons why, in a paid advertisem ent in the local
new spaper, this store said:
This Is Not
The American
W ay of Life
“ For over half a century this store has weath
ered depressions, panics and all sorts of conditions
in war and peace. But we do not see encourage
ment to continue.
“ Union labor business agents are too strong
with their racket for us to receive fair treatment
in the management of our business. They have
forced us to employ men who were detected in
dishonesty and have upheld employes who were
discharged for uncleanliness and drunkenness.
They have demanded that we discharge our oldest
and most faithful employes who have been de
linquent in their dues.
“ The cost is too great—we pass.”
This is NOT the way to make America great.
This is not the w ay fo r L abor to achieve the
rig h tfu l place w hich it should occupy in the eco
nomic scheme of things.
The leaders of L abor— or a t least the Commu
nists and racketeers which they have allowed to
control th eir ran k s—have done more harm to the
labor m ovem ent and to the labor unions d u rin g
the last 12 m onths th a n any period in th eir history.
Y oung men who are going to arm y camps and
are receiving pay of less th a n $1.00 A DAY and
th eir fam ilies are not going to feel very favorable
tow ard the m an who is strik in g while he is receiv
ing $1.00 AN HOUR.
This is not the A m erican w ay of life.
Oheck Tax
Unnecessary
W hile we are very much in
favor of a “ pay as y°n g0” tax
'
program , to c a rry on d u rin g
our w ar em ergency, we feel th a t the proposed tax
on checks is unnecessary and undesirable.
We agree w ith M arriner S. Eccles, chairm an of
the B oard of Governors of the F ederal Reserve
System, who says th a t “ Checks, ra th er th a n cur
rency, are used to settle some 80 p er cent o f our total
transactions. There is no more reason to ta x checks
th a n currency p a ym ents. F o r m a n y it w ill be a
sim ple m a tte r to avoid the ta x by using currency
in stead o f checks. D epositors o f sm all m eans, al
ready su b ject to bank service charges, w ill be the
g ro u p m ost likely to avoid the ta x in th is w ay, but
th ey w ill th u s be d ep rived o f a safe and convenient
w ay o f m aking m oney p a ym en ts, as w ell as a rec
ord o f receipts and p a ym en ts. The ta x w ill not
come out o f bank earnings, b ut w ill be charged to
the in d iv id u a l acco u n t.”
F o r m any years banks have been urg in g th eir
custom ers to use checks to pay th e ir c u rren t bills
as the checks act as a definite receipt.
It is tru e th a t th ere is a service charge on the
num ber of checks used, b u t this is usually very
small in com parison w ith the service ren d ered to
the depositor. Also, as Mr. Eccles points out, the
depositors will s ta rt using currency instead of
checks to pay th e ir bills.
However, even if banks do not lose an y th in g
from th eir earnings, we believe th a t the small
am ount of m oney which will be raised by this tax
is out of proportion to the harm th a t it would do.
N orthw estern Banker
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Federal Reserve Bank of St. Louis
Ju ly 19bl
10
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly 1941
11
How to Serve the Public
At a
Consumer Credit Creed
(A.B.A.)
Be believe, That, in order to justify
its cha7'ter, a bank 7nust serve the
reasonable credit requirements of its
territory as well as provide a safe
depository for funds;
T hat the exten sio n of credit to sal
aried or wage-earning individuals on
a sound basis is an econom ically im
portant part of such service;
That, w hile recognizing the im p o r
tance of vo lu m e in th e reduction of
loan costs, a bank should endeavor to
assist people to get out of debt rather
tha n into it;
T hat, although a bank m u st be com
p etitive, it m u s t m a in ta in its practices
and policies on a plane w h ich w ill not
bring disrepute to banking, and keep
all a dvertising restrained, tru th fu l,
and exact;
T h a t a bank m u st determ ine fo r it
self w h e th e r it w ill offer its services
directly to the public or through o th
ers, but th a t no bank should uphold
or assist such others w h e n th e y in
dulge in u n fa ir business practices;
T h a t a bank should determ ine the
costs and hazards in h eren t in such
credit and establish its loan charges
accordingly; and, finally,
T hat any bank w h ich extends credit
to individuals u n d er these standards
of practice w ill m e rit the good w ill
and support of the general public.
L et me say th a t we, in our bank, be
lieve in th e foregoing creed, b u t say it
in a different language. W e p u t it in
the negative, and it is for th e guidance
of our em ployes, ra th e r th a n in th e
positive form as in th e C onsum er
C redit Creed. F o r th e sake of clarifica
tion, we say:
1. Do n o t urge people to go into
debt.
2. Do n o t u rge people to refinance
or in crease th e ir loans.
3. Do not tell people it is easy to
pay the m oney back.
4. N eith er deceive th e b o rro w er
about tim e-loan rates, n o r apologize
for them .
5. Do not m ake a loan on th e
stre n g th of th e g u aran ty , th e collat
eral, or th e co-maker.
Profit
but it gives signs of approaching such
a stage, and th erefo re keen diagnos
Vice President
ticians of economic ills have felt th a t
Northwestern National Bank & Trust
this is th e tim e to p u t on th e brakes.
Com pany, Minneapolis
If th e brakes can be applied gently,
but firmly, th e in stallm en t loaning
m achinery w ill not be stopped, b u t
B e f o r e the S o u th D a k o ta
m ay be slowed up. If th e individual is
m ildly discouraged from his n a tu ra l
B a n k e r s C o n v e n tio n
tendency to over-spend rig h t now,
th ere should be ju st so m uch m ore
su rp lu s to in vest in defense savings
bonds, w hich should be beneficial to
6.
Do not m ake a loan for an ill- him and to th e nation.
T here has been a lot of talk along
advised or foolish purpose.
these lines. In W ashington th ere has
You m ay perhaps be in terested in
been m uch discussion of w ays and
th e process of reasoning w hich leads
m eans to p u t on th e brakes, b u t it
experienced consum er credit bankers
looks rig h t now as if th e control w ould
be applied at th e source and th ro u g h
taxation ra th e r th a n th ro u g h arb i
tra ry reg ulation of consum er credit.
I u n d erstan d th a t tw o days of discus
sion on th e p a rt of at least one group
resulted in th e conclusion th a t m ore
h arm th a n good w ould be done if any
a rb itra ry regulations w ere p u t into
effect.
To get dow n to th e practical appli
cation of consum er credit in sm aller
banks—th a t is, banks not in reserve
cities—I w ould like to v e n tu re a few
recom m endations:
By John Burgess
JO H N
BU R G ESS
to recom m end cu rtailm en t of m a tu ri
ties and increases in equity paym ents
at th is tim e. At the m om ent, th e wage
e a rn e r has an increased volume, and
th ere is no need for stim ulation to buy
things, especially durable goods, like
autom obiles, refrig erato rs, and w ash
ing m achines; also, th e n atio n ’s in
d u stries do n ot need additional de
m and for th e ir products. T his is,
th erefore, th e tim e for correcting the
abuses w hich have developed in con
su m er credit. This tim e-paym ent busi
ness has not gotten into poor health,
1. Do not go into th e consum er cred
it or installm en t field as such unless
you are yourself convinced th a t th ere
IS a field and th a t you desire a de
p a rtm e n t of this kind. By a d e p a rt
m ent, I m ean at least one individual
who w ill have en tire charge of th a t
departm ent. M any sm all banks will
say th a t th e y are not large enough or
th a t th e re is n ot enough business
available to m ake it feasible to estab
lish a departm ent. My m eaning, then,
is th a t in a two-m an bank, w hich is
desirous of m aking installm en t loans,
one of th e m en should be designated
as th e in stallm en t loan man.
2. The person to be in charge of th e
in stallm en t loan d ep artm en t should
be a resourceful, hard-w orking, keen,
horse-trading kind of individual, not
afraid of responsibility, and able to
act upon his ow n initiative.
3. The d e p a rtm e n t’s loans and e a rn
ings should be segregated, so th a t you
(T u rn to page 26, please)
N orthw estern Banker
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Federal Reserve Bank of St. Louis
July 19M
12
Bankers In Northwest Conclude
Three S tate Conventions
Minnesota, North Dakota and South Dakota Financiers View
Future With Optimism
H E parade of Ju n e conventions in
th e n o rth w e st is over. B ankers
from th e sm aller tow ns in M inne
sota, N o rth D akota and South D akota
can now settle dow n to a quiet sum
m er of fishing or golfing or sw im m ing,
as th e case m ay be, and re p re se n ta
tives from the large city banks, w ho
m ade th re e or four conventions d u r
ing Ju n e can now relax and sta rt
th in k in g about a vacation.
W hile conventions th is y ear broke
no atten d an ce records, reg istratio n s
w ere large at all of them , and w ith an
abundance of m o istu re m aking crop
prospects in th e n o rth w e st th e best in
m any years, b an k ers are optim istic
about fu tu re b ank earnings. The M in
nesota convention reg istered aro u n d
1,500, N orth D akota h ad about 200 in
attendance, and u p w ard of 250 w ere
w earing badges a t the South D akota
m eeting in Deadwood.
T
Minnesota
O. G. Jones, vice p resid en t of th e
By Henry H. Haynes
Editor
Goodhue C ounty N ational Bank, Red
W ing, heads th e M innesota Associa
tion for th e com ing year, w ith L. O.
Olson, cashier of th e M idland N ational,
M inneapolis, as vice president, and
Jam es H. H ogan, presid en t of the Kerrick S tate Bank, as treasu rer. M em
bers of th e M innesota executive coun
cil are P. D. Beaulieu, president, A us
tin S tate Bank; M. O. G rangaard, vice
president, F irs t N ational, M inneapolis,
and F. A. Tim m , p resid en t and cash
ier, F arm ers & M erchants State of
Balaton.
R efreshm ents and inform ality fea
tu re d th e pre-convention sm oker of
th e M innesota B ankers A ssociation in
th e St. P aul A thletic Club. H ighlight
of th e evening’s en terta in m e n t w as the
aw arding of golf prizes to m em bers
w ho took p a rt in th e to u rn am en t at
th e M idland H ills C ountry Club.
The low gross prize w as w on by
H ow ard Johnson of N o rth B ranch,
w ith M. L. L u n d sten w inning th e low
n et aw ard.
O ther prize w inners:
H ighest gross score, R. E. Hasselberg; highest n et score, Jo h n Carlander of F arib au lt; m ost 4’s on card, A. F.
Johnson; m ost 8’s, H. W. Zabel, Plainview; m ost pars, O. R usness, M oor
head.
U nselfishness in th e in te re st of n a
tional defense w as urged on M innesota
ban k ers by B. M. E dw ards, assistan t
to th e secretary of th e U nited States
T reasury.
E dw ards lauded th e n atio n ’s b an k
ers for th e ir p a rt in prom oting th e
sale of defense securities w ith o u t
“com m ission or any inducem ent ex
cept p atrio tism .”
“H ow ever stro n g our in ten tio n s m ay
A T T H E M IN N E S O T A C O N V E N T IO N
H e re a re p ic tu re d a n u m b er of th o se a tte n d in g th e M in n e so ta
C o n v en tio n in S t. P a u l, re a d in g fro m l e f t to rig h t. 1— A1 K aiser,
p re sid e n t, F i r s t N a tio n a l, B a g le y , a n d E arle L. N yhus, A n ch o r
C a su a lty , S t. P a u l. 2— Jerry K ircher, F D IC , S t. P a u l; E. C.
W iggin s, B ro w n -B lo d g e tt, St. P a u l, a n d W. W. Coombs, F D IC ,
St. P a u l. 3— T hese fo lk s, all a sso c ia te d w ith th e F i r s t N a tio n a l
B a n k , B ra h am , a re R ueben Johnson; Mrs. Johnson; M argaret
Ericson, a s s is ta n t c a s h ie r; M argaret Olson; a n d O. A. Olson,
p re sid e n t.
4— H arry W alsh, M a n u fa c tu re rs T ru s t C om pany,
N ew Y o rk ; O. B. R usness, e x e c u tiv e vice p re sid e n t, F i r s t N a
tio n a l, M oorhead, a n d O. L. H all, p re s id e n t, B a n k o f W isconsin,
S h eb o y g an . 5— W. C. Frank, p re sid e n t, S ta te B a n k of W ood
L a k e ; Cyrus Frank, a n d L. B. Barnhard, B a n k o f W illm a r. 6—
A. T. Scriver, p re sid e n t, F i r s t N a tio n a l, C annon F a lls , a n d A.
W. Sw anson, c a sh ie r o f th e sam e b a n k , a n d Louis Jacoby, Chase
N a tio n a l B a n k , N ew Y o rk . 7— Mrs. F. A. Buscher, M a n k a to ;
W . F. B eck, C ity In v e s tm e n t C o rp o ra tio n , M a n k a to ; F. A.
Buscher, vice p re s id e n t a n d cash ie r, N a tio n a l B a n k of Com m erce,
M a n k a to , a n d O. W. Lundsten, p re sid e n t, M in n e to n k a S ta te
B a n k , E x ce lsio r. 8— A lb ert A. Barton, v ice p re sid e n t, A m e ric an
N a tio n a l, L ittle F a lls ; H. P. Schoen, cash ie r, F i r s t N a tio n a l
H a s tin g s , a n d Elm er V. E rickson, p re sid e n t, C a m b rid g e S ta te
B a n k . 9— Jack M aloney, a s s is ta n t c ash ie r, F i r s t N a tio n a l B a n k ,
M in n e ap o lis, a n d John E ngebretson, p re s id e n t, K e n n e th S ta te
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly i9 h l
B a n k . 10— M ae B ohnen a n d L ucille Barbeen, S t. P a u l; F ranklin
Brighan, S t. L ouis P a r k , a n d T. G. W urst, p re s id e n t, S ta te B a n k
of G reen w ald . 11— Jam es H. H ogan, p re s id e n t, K e rric k S ta te
B a n k ; A. J. Syse, c ash ie r, N ew F a rm e rs a n d M e rc h a n ts S ta te ,
R ussell, a n d A. E. Eddy, c ash ie r, F a rm e rs & M e rc h a n ts S ta te ,
H in c k le y . 12— Charles Gambrell, a s s is ta n t vice p re s id e n t, I r v
in g T ru s t C om pany, N ew Y o rk ; A lfred R. Clark, a s s is ta n t sec
re ta ry , C e n tra l H a n o v e r, N ew Y o rk , a n d John V. H aas, a s s is t
a n t c ash ie r, N o rth e rn T ru s t, C hicago. 13— Boyd Simmons, a s
s is ta n t cash ie r, C o n tin e n ta l Illin o is N a tio n a l, C hicago, a n d F. M.
Beach, L y le. 14— L. J. F iegel, vice p re s id e n t, F i r s t N a tio n a l
B a n k , R o c h e ste r; Mrs. L. J. F iegel, a n d B en Brombach, a s s is t
a 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 e ap o lis. 15— R. E.
Sprague, v ic e p re s id e n t, S p ra g u e S ta te B a n k , C aledonia, a n d
G aylord Jones, P ip e r J a ffre y & H opw ood, M in n e ap o lis. 16—
T. O. Berge, P o lic y h o ld e rs N a tio n a l L ife , M in n e ap o lis, a n d H.
O. Chapman, s e c re ta ry -tre a s u re r, p o lic y h o ld ers N a tio n a l L ife ,
S ioux F a lls ; H. N. L un gw itz, c ash ie r, W rig h t C o u n ty S ta te , M ontic e llo , a n d Jam es F. M ullen, c ash ie r, C itiz en s S ta te B a n k , G reen
Isle . 17— Bud A llen, v ice p re s id e n t, C o n tin e n ta l Illin o is N a
tio n a l, C h icago; J. K. Cornelyson, L a k e C o u n ty L o a n C om pany,
M adison, S o u th D a k o ta , a n d E. W . Sw anson, F e d e ra l R eserv e,
M in n eap o lis.
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Federal Reserve Bank of St. Louis
14
be, and no m a tte r how ferv en tly we
m ay express our love of country, we
are not going to be able to m ake A m er
ica an im pregnable fo rtress of defense
and do it in tim e u nless we p u t aside
some of th e selfishness th a t has ch a r
acterized th e re a rm a m en t effort,” E d
w ards said.
R. W. Sinsabaugh of th e New York
in v estm en t firm of Clarke, Sinsabaugh
& Company, Inc., w arn ed th a t in tim e
of w ar w hen all conditions are subject
to v iolent changes th e in v esto r has
tw o roads open, he can assum e a cer
tain series of events as being th e m ost
likely and in v est his m oney according
ly, or he can safeguard his in v estm en t
w ith a well-diversified portfolio.
“It is far b e tte r for the in v esto r to
adopt safeguards; to assum e a nu m b er
of fu tu re possibilities and to pro tect a
certain portion of his funds ag ain st
any of them . He m u st have th e safe
guard of a w ell diversified portfolio;
he m u st have th e safeguard of con
sta n t reap p raisal of th e business and
in vestm en t outlook and th e m ental
flexibility to abandon quickly a posi
tion w hich becom es untenable.
“W hen the w ar is over, th e b an k er
and th e in v esto r alike w ill be able to
reap p raise th e ir situ atio n in th e light
of c u rre n t events. I am confident th a t
in th e w orld follow ing th e w ar th ere
will be a place for the b an k er and the
investo r and both of them w ill profit
in th e fu tu re as th ey have in th e past
by ad ju stin g th e ir operations to th e
new w orld as th ey find it.”
Of u n u su al in te re st w as th e talk of
H. V. K alten b o rn a t th e M innesota
m eeting, excerpts from w hich appear
on an o th e r page of th is Ju ly issue.
North Dakota
At its 39th an n u al convention in
Bism arck, th e N o rth D akota B ankers
A ssociation nam ed J. I. Hegge, p resi
den t of the N orth w estern State B ank
of H illsboro, as president, to succeed
M artin Aas of New Rockford. Asso
ciation vice presid en t is Jo h n M ilsten,
p resid en t of the F irs t N ational B ank
of Belfield, and F ra n k lin Page, cashier
of th e B ank of H am ilton, w as elected
tre a su rer. A. B. A. officers nam ed
w ere M artin Aas, m em ber of executive
council for th ree years; F red Irish,
Fargo, m em ber nom inating com m it
tee, w ith G. H. N esbit as alternate;
vice p resident N ational bank division,
C. W. Burgess, Edgeley; state division,
0. P. K elstrup, Minot; savings division,
1. E. Giedt, Richardson, and tru s t divi
sion, F ra n k R. Scott, Fargo.
In case you did n ’t know, w estern
N orth D akota is the place w here
freig h t tra in engines have tw o w ater
tenders, and on hot days these tenders
sw eat in little w aves on th e outside
of th e ta n k ju st as th e w aves on the
inside splash around w ith the m ove
m en t of th e train . M. O. G rangaard,
vice president, F irs t of M inneapolis,
has never m issed a N orth D akota con
vention since 1906, for th e p ast 31
years. Uncle Sam has a large concen
tra tio n cam p on the o u tsk irts of Bis
m arck w hich has been housing some
1,000 G erm an prisoners, and by this
tim e an o th er thousand Italian s have
been interned. T hey are ap p aren tly
young men, tak en off ships seized
some tim e ago in A m erican ports.
T hree escaped a sh o rt tim e ago, b ut
w ere soon recaptured. I t ’s not so easy
to find a place to hide on N orth Da
kota prairies.
J. A. G raham , state b ank exam iner
for N o rth Dakota, discussed legislation
and changes in th e set-up of th e state
ban k in g board. He cracked dow n a
little h ard on N orth D akota banks
w hich w ere m aking w h at he consid
ered too m uch profit from service
charges. F o rty per cent of the incom e
of some banks comes from service
charges, he said, and felt this w as en
tirely too m uch. Mr. G raham w arned
th a t if th e public becam e sufficiently
aroused it w ould take th e m a tte r to
th e legislature, and m ost ban k ers
know w h at th a t m eans in th e w ay of
regulation. F o rtu n ately , he said, th ere
are only a few banks w hich are the
chief offenders. He cautioned banks
to keep th e ir eye on public relations
—if you m u st refuse certain loans, try
to help th e prospective custom er ob
tain th e loan som ew here else th ro u g h
some o ther type of loaning agency—
an a b ru p t tu rn d o w n w ith no coopera
tion breeds th e w rong public im pres
sion of banks.
C oordinated production of th e foods
and m aterials needed to w in th e w ar
w ith G erm any is sought by G reat B rit
ain, J. H. E vans, deputy m in ister of
ag ricu ltu re for the C anadian province
of M anitoba, told N o rth D akota b an k
ers.
D eclaring th a t C anada’s w ar effort
has ju st begun, E vans said th a t G reat
B ritain hopes to get each co untry w ith
in th e em pire, and th e U nited States,
to produce th a t w hich it can fu rn ish
to the best advantage.
The people of B ritain, E v an s said,
are possibly b e tte r fed today th a n th ey
w ere before th e w ar, because now th ey
are on balanced rations. G reat B ritain,
he said, had foreseen w h at w as to
come and prep ared to satisfy food
needs.
E vans declared th a t w h eat su rplus
is still a m ajor problem in Canada and
th a t B ritain has m ore need for the
bacon, cheese, concentrated m ilk, eggs
and po u ltry th a t Canada can supply.
He said Canada cannot com pete w ith
the A rgentine beef on the B ritish
m arket.
A T T H E N O R T H D A K O T A C O N V E N T IO N
A m ong th o se a tte n d in g th e re c e n t N o rth D a k o ta C onv en tio n
w ere, re a d in g fro m le f t to r ig h t, 1— J. O. Severtson, B a n k o f K ildeer, a n d C. H. Freem an, a s s is ta n t c ash ie r, S ta te B a n k of Souris.
2— F. W. Conrad, a s s is ta n t v ice p re sid e n t, N o rth w e s te rn N a
tio n a l B a n k , M in n e ap o lis, a n d H. W. K oeneke, p re sid e n t, S e c u
r i ty B a n k , P o n c a C ity, O klahom a, a n d vice p re sid e n t, A m e ric an
B a n k e rs A sso c ia tio n . 3— Don M arcellus, m a n a g e r, n o rth w e s t
e rn d iv isio n C h am b er o f Com m erce of U. S., M in n eap o lis, an d
W. E. Tooley, c ash ie r, F i r s t N a tio n a l B a n k , M in o t. 4— Sharpe
Pruetz, a s s is ta n t c ash ie r, K u lm S ta te B a n k , a n d J. W. M eidinger, A shley. 5— J. C. Moore, vice p re sid e n t, S to c k Y a rd s N a
tio n a l, S o u th St. P a u l; J. W. M offatt, c ash ie r, M e rc h a n ts B a n k ,
R u g b y ; M. O. Grangaard, vice p re sid e n t, F i r s t N a tio n a l, M in n e
apolis, a n d H. E. M ueller, H a ze n . 6— G. H. N e sb itt, vice p re s i
d e n t, a n d F. A. Irish, p re sid e n t, b o th of F i r s t N a tio n a l, F a rg o .
7— R ay B. Swanson, H om e In su ra n c e C om pany, F a rg o ; Burt
Burton, H om e In s u ra n c e C om pany, Sioux F a lls, a n d O. A. Schollander, S t. P a u l F ire & M a rin e , F a rg o . 8— A n to in ette L ux an d
Janna Jansen, d isp e n sin g c h arm a n d b a d g e s a t th e re g is tra tio n
desk. 9— W. A. Volkm ann, a s s is ta n t c ash ie r, F i r s t N a tio n a l,
N orthw estern Banker
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Federal Reserve Bank of St. Louis
July 19bl
M in n e a p o lis; T. D. H ughes, v ice p re s id e n t, F a rg o N a tio n a l
B a n k , a n d George L. M itchell, De L u x e C heck P r in te r s , M in n e
apolis. 10— W illis W yard, e x e c u tiv e v ice p re s id e n t, F i r s t &
A m e ric an N a tio n a l, D u lu th , a n d E. D. Saltzm an, vice p re sid e n t,
F i r s t N a tio n a l, B ism arc k . 11— C. O. Levorsen, v ice p re sid e n t,
F a rm e rs S ta te B a n k , E lg in ; J. I. H egge, p re s id e n t, N o rth w e s te rn
S ta te B a n k , H illsb o ro , a n d new p re sid e n t, N o rth D a k o ta B a n k
ers A s so c ia tio n ; M artin A as, v ice p re sid e n t, F i r s t S ta te B a n k ,
N ew R o c k fo rd , a n d im m e d ia te p a s t p re s id e n t A sso c ia tio n , a n d
L. H. E verett, a s s is ta n t cash ie r, N a tio n a l B a n k of Ja m e s to w n .
12— Verne B artling, a s s is ta n t c ash ie r, F i r s t N a tio n a l, C hicago.
13— Frank R. Scott, p re sid e n t, M e rc h a n ts N a tio n a l B a n k , F a rg o ,
a n d Dr. Irvin L avine, U n iv e rs ity of N o rth D a k o ta , G ra n d F o rk s.
14— H. B. Hum ason, p re s id e n t, A m e ric a n N a tio n a l B a n k , St.
P a u l; R. H. B u tterw ick , c ash ie r, D a k o ta N a tio n a l, F a rg o , an d
C. C. W attam , s e c re ta ry , N o rth D a k o ta B a n k e rs A sso c ia tio n ,
F a rg o . 15— A. T. Russell, F a rg o ; W. D. H eupel, c ash ie r, S to c k
G row ers B a n k , N apoleon, a n d F. B. H eath, p re s id e n t, D a k o ta
N a tio n a l B a n k , B ism arc k .
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Federal Reserve Bank of St. Louis
16
A sserting th a t “th e A m erican farm
er w as th e first casualty of th is w ar,”
E vans s a i d ad ju stm en ts to m eet
changed conditions w ere being m ade
in C anadian ag ricu ltu re as well as in
th a t of th e U nited States.
Am ong resolutions adopted a t B is
m arck w as one expressing opposition
to th e infliction of any ta x on b ank
checks, su p p o rt w as pledged to the
N ational defense effort, and th e G reat
er N orth D akota A ssociation and
o thers w ere com m ended for th e ir ef
forts and co n trib u tio n s to th e im prove
m en t of th e econom ic condition in
N orth Dakota. D ickinson w as chosen
as th e convention city for 1942.
South Dakota
L. T. M orris, p resid en t of th e F irs t
Citizens N ational B ank, W atertow n,
w as elected p resid en t of th e South Da
kota A ssociation in th e closing session
at Deadwood. Mr. M orris succeeds
F. F. P hillippi of M ilbank. H. N.
Thom son, vice president, F a rm e rs and
M erchants S tate B ank, P resho, w as
nam ed vice president, and, of course,
George S ta rrin g continues as secretary
and tre a su re r.
C. H. L ockhart, vice president, F irs t
Citizens N ational, W atertow n, w as
nam ed a m em ber of th e A. B. A. nom i
n atin g com m ittee at th e A. B. A. elec
tions held a t Deadwood, w ith H. E.
Edm unds, cashier, A m erican State,
Y ankton, as altern ate. O ther A. B. A.
officers elected w ere F re d Roesch,
A berdeen, vice president, N ational
b an k division; W. C. Duffy, Sioux Falls,
vice president, savings division; C. O.
P eterson, Lem m on, vice president,
state division, and C. I. D anforth,
Y ankton, vice president, tru s t division.
E lected to three-year term s on the
South D akota A ssociation executive
council w ere L. C. Forem an, Elkton;
J. M. P atton, M itchell, and L. L.
B ranch, P ierre.
South D akota b ankers and guests
from near and far alw ays have a good
tim e at a convention held in th e Black
Hills, and th e Deadwood m eeting this
y e a r stands rig h t up am ong th e best.
F o r atm osphere and scenery, Deadwood is ideal, and of course th ere are
recreational facilities there, th e like of
w hich are found in b u t few o ther cities
of th e U nited States. M any a banker,
we im agine, w en t to bed w ith spinning
w heels and rapidly m oving cubes
dancing before his eyes, and w e a re n ’t
talk in g about m erry-go-rounds or dom
inos, either. B ut it w as all in fun, and
it looked like even P otato Creek
Jo h n n y w as having a good tim e along
w ith his financial friends from afar.
R alph W atson, president of the
N o rth w est Security N ational Bank,
Sioux Falls, w as m arried in M inneap
olis on Ju n e 23rd, and p a rt of his
honeym oon trip to the w est coast in
cluded th e convention at Deadwood.
A rriv ing at the ban q u et th e second
evening of th e m eeting, th e orchestra
stru c k up “H ere Comes th e B ride,”
w hen R alph and Mrs. W atson took
th e ir seats at th e head table.
The business sessions of th e South
D akota m eeting w ere exceptional from
an inform ative and helpful standpoint,
and several of them w ill be published
in th is and com ing issues of T h e
N or thw estern B anker .
“T here are only tw o nations th a t can
possibly hope to w in the p resen t w ar
—G erm any and th e U nited States.
A nd if the U nited States hopes to w in
it m ust expect to spend betw een $35,000,000,000 and $40,000,000,000 an nually
on th e w ar as long as it lasts.” These
are the view s of Clifton M. Utley, di
recto r of th e Chicago council on for
eign relations and radio b roadcaster in
th e field of foreign affairs as presented
to the m em bership of th e South Da
kota B ankers Association.
“The spending of such a sum on
w ar production w ill produce a funda
m ental change in A m erican economic
life. L ast y ear we spent about $6,000,000,000 on national defense out of a
total national incom e probably som e
w here around $75,000,000,000. In the
com ing w ar effort our national income
w ill probably rise to $95,000,000,000,
p erhaps slightly higher, b ut out of th a t
w ill have to come $40,000,000,000 for
national defense. T hus w here we had
$69,000,000,000 left for all non-defense
purposes last year, in th e fu tu re we
w ill have $55,000,000,000 left for con
sum ption goods out of a $95,000,000,000
national income. And th a t m eans th a t
consum ption w ill have to decrease and
decrease sh arp ly .”
Mr. U tle criticized sh arp ly th e ad
m in istra tio n ’s policy of encouraging
A T T H E S O U T H D A K O T A C O N V E N T IO N
R e a d in g fro m le f t to rig h t, th o se p ic tu re s on th e opp o site page
a re, 1— Mrs. F an n y M orris Kemp, W a te rto w n ; L. T. M orris,
p re sid e n t, F i r s t C itiz en s N a tio n a l B a n k , W a te rto w n , a n d new
p re s id e n t S o u th D a k o ta A s so c ia tio n ; a n d Mrs. F. F. P h illip p i,
M ilb an k . 2— John Burgess, v ice p re sid e n t, 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; a n d F. F. P h illip p i, c ash ie r, D a k o ta
S ta te B a n k , M ilb a n k , a n d im m e d ia te p a s t p re s id e n t, S outh
D a k o ta A sso c ia tio n . 3— H. W. K oeneke, p re sid e n t, S e c u rity
B a n k , P o n c a C ity , O klahom a, a n d first v ice p re sid e n t, A m e ric an
B a n k e rs A s so c ia tio n ; a n d Mrs. George P hilip, R a p id C ity. 4—
L. R. G isvold, a s s is ta n t c ash 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; a n d “ P otato C reek’ ’ Joh n n y P errett, D eadw ood
old -tim er. 5— R. R. Brubacher, p re sid e n t, T oy N a tio n a l B a n k ,
Sioux C ity , Io w a ; a n d V erne B artling, a s s is ta n t c ash ie r, F ir s t
N a tio n a l B a n k , C hicago. 6— H om er P eterson, U. S. C heck B ook
C om pany, O m ah a; John Thompson, vice p re s id e n t a n d c ash ie r,
B a n k o f C e n te rv ille ; a n d B. J. M cCartney, U. S. C heck B ook
C om pany, S ioux F a lls.
7— H orace Farnsw orth, TJ. S. C heck
B ook C om pany, L e a d ; F. M. R egan, g e n e ra l in su ra n c e agency,
S ioux F a lls ; a n d P. J. Schriber, v ice p re s id e n t a n d m an a g er,
F ir s t N a tio n a l B a n k , M o b rid g e. 8— B oyd Simmons, a s s is ta n t
cash ie r, C o n tin e n ta l Illin o is N a tio n a l, C hicago; F red S tiles,
p re sid e n t, F i r s t N a tio n a l B a n k , A b e rd e e n ; Leonard G isvold, a s
s is ta n t cash ie r, N o rth w e s te rn N a tio n a l, M in n e a p o lis; Carl Fredricksen, p re sid e n t, L iv e S to c k N a tio n a l B a n k , Sioux C ity ; Barry
W allace, second v ice p re s id e n t, C o n tin e n ta l Illin o is N a tio n a l,
C hicago; a n d L arry Olson, c ash ie r, M id la n d N a tio n a l B a n k ,
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly 19ril
M in n e ap o lis. 9— T. S. H arkison, v ice p re s id e n t, N a tio n a l B a n k
o f S o u th D a k o ta , Sioux F a lls ; a n d H arold W alker, p re sid e n t,
B e a r B u tte V a lle y B a n k , S tu rg is. 10— S. H. W hitm an, p re s i
d e n t, P o lic y h o ld e rs N a tio n a l L ife , S ioux F a lls ; R ussell Bard,
c ash ie r, H a n d C o u n ty S ta te , M ille r; A. E. Dahl, e x e c u tiv e vice
p re sid e n t, R a p id C ity N a tio n a l B a n k ; a n d L. A. H ollenbeck,
c ash ie r, F a rm e rs & M e rc h a n ts S ta te , Iro q u o is. 11— Tom H ayter, vice p re sid e n t, F i r s t N a tio n a l, Sioux F a lls ; P ierce M cD ow ell,
v ice p re sid e n t, N o rth w e s t S e c u rity N a tio n a l, S ioux F a lls ; W. P.
Jones, c ash ie r, C itiz en s B a n k of M o b rid g e ; Tom H odgson, F e d
e ra l R eserv e, M in n e ap o lis; a n d V. W. A beel, B a n k in g D e p a rt
m en t, P ie rre . 12— J. L. D riscoll, F e n n e r & B eane, M in n e a p o lis;
a n d Jerry Nordberg, E. H . R ollins & Sons, M in n eap o lis. 13—
Leonard M oeller, e x e c u tiv e s ta te a g e n t, S t. P a u l M e rc u ry &
In d e m n ity C om pany, S t. P a u l; C. W. Burgess, cash ie r, S e c u rity
N a tio n a l, E d g eley , N o rth D a k o ta ; W illiam N. K unze, vice p re s i
d 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 R. S. M anfield,
p re sid e n t, A b e rd ee n N a tio n a l B a n k . 14— L. T. Jarm uth, vice
p re sid e n t, F i r s t N a tio n a l B a n k , M ille r; Thom as W angsness, vice
p re s id e n t a n d c ash ie r, F i r s t N a tio n a l B a n k in G a rre ts o n ; Don
Crouley, a s s is ta n t c ash ie r, N o rth w e s te rn N a tio n a l, M in n e a p o lis;
a n d H. T. Gerhard, p re sid e n t, F a rm e rs & M e rc h a n ts S ta te , P la n k in to n .
Charles G ossett, p re sid e n t, S e c u rity N a tio n a l B a n k ,
S io u x C ity ; a n d B. R. Laird, c ash ie r, S e c u rity S ta te B a n k , T y n
dall. 16— L. A. H ollenbeck, Iro q u o is; E rlin g H auge, b a n k in g
su p e rin te n d e n t fo r S outh D a k o ta , P ie r r e ; B. R. Laird, T y n d a ll;
a n d S tev e Anderson, d e p u ty b a n k in g su p e rin te n d e n t, P ie rre .
♦s
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Federal Reserve Bank of St. Louis
18
wage increases a t th e p re se n t tim e.
“A t a m om ent w h en everyone w ho
studies th e situ atio n is fully aw are
th a t th e need is for low ered consum p
tion to free m ore factories and produc
tive labor for essential w ar in dustries,
th e N ew Deal is follow ing a w age pol
icy th a t places m ore and m ore p u r
chasing pow er in th e h ands of con
sum ers. T here can be no valid eco
nom ic defense for such a policy,” th e
speak er added. The only explanation
is th a t th e ad m in istratio n finds itself
a p riso n er of its p ast labor policy and
feels th a t for th e tim e being it m ust
encourage w age increases so as not to
destroy labor m orale.”
“B ut th e b lu n t fact is th a t consum p
tion m u st go dow n and it w ill go
dow n,” U tley said. “The g o vernm ent
w ill get th e m oney it needs for de
fense purposes in one w ay or another.
It w ill get it by taxation, by borrow ing
or by inflation. If we are to do this
job and to avoid serious inflation we
need hig h er taxes and we need them
now. It is not a question of w h eth er
we should have h ig h er incom e taxes
or a general national sales tax. I be
lieve we should have both. I favor a
natio nal sales tax —possibly w ith selec
tive exem ptions on basic foods so th a t
th e v ery poor w ould escape its full
rigors—for th e v ery reason th a t I
w ould oppose such a ta x in norm al
tim es. It does cut consum ption and it
cuts it heavily. A nd it has th e addi
tio n al advantage th a t it m akes its ef
fect felt im m ediately, th u s m inim izing
inflationary influences th a t are u n
avoidable at a tim e such as th e presen t
w hen the governm ent is co nstantly in
th e m a rk e t as th e g reatest b uyer of
goods and services.”
Kurrent Kaltenborn Komment
By H. V. Kaltenborn
Before Minnesota Bankers Convention
ISCUSSING c u rre n t conditions in
th e U nited States and th e in te r
national situ atio n th ro u g h th e w orld,
H. V. K altenborn, w ell-know n N a
tional
B roadcasting
com m entator,
m ade th e follow ing statem en t before
the recen t m eeting of th e M innesota
B ankers C onvention at St. P aul:
“E n gland had a fifty-fifty chance to
w in th e w ar one y ear ago—now she
has a 100 to 1 chance to w in.”
“Some of th e C. I. O. leaders and
som e of th e ir m em bers are Com m u
nists, and are in terested not in labor,
b u t in p rev en tin g th e production of
goods for E n g lan d and th e U nited
States.”
“W h at you are going to m ake, Uncle
Sam is going to take.”
“I t w ill be easy for th e g overnm ent
to control business, b u t it w ill be h ard
to give up th ese controls w h en th e
w ar is over.”
“So long as we have th e pow er of
rem oval of any executive, we have a
dem ocracy.”
“H itler w ill only for a b rief period
hold to g eth er w h at he has conquered.”
“If H itler gets a toothache, it m ay
affect y o u r portfolio o v ern ig h t.”
“The only question is to w h a t ex ten t
we w ill use o u r arm y and our n avy to
defeat H itler—because w e w ill fight
to p rev en t his success.”
“F oreig n groups w ith foreign u n i
form s and foreign salutes in our own
co u n try should be elim inated.”
“So far H itler has w on th e w ar be
cause for eight y ears he has concen-
D
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly 19M
tra te d on building w ar m achinery. So
could we if we had done n o thing b u t
equip ourselves for w ar. W e are ju st
beginning — H itler h a sn ’t seen an y
th in g y et.”
“So far H itler hasn’t ta ken one foot
of E n g lish soil.”
“B ankers are no longer considered
as villains, b u t are being recognized
as a necessary p a rt of th e n a tio n ’s
economy. B ankers are playing a tre
m endously im p o rtan t p a rt in th e n a
tio n ’s financial program .”
“H itler is a sm all m an physically, a
sm all m an m entally, b u t he is a fa
natic w ith one idea, w hich is N ational
Socialism.”
“A dictator alw ays looks good up
to the last five m in u te s ”
“H itler cannot w in w hile th e U nited
States and G reat B ritain stand against
an y peace program .”
“H itler has a one-track m ind—talks
and talks to you like you w ere a pub
lic m eeting. He likes no games, eats
no m eat and loves no w om an—w h at a
life!”
“S talin w an ts to stay out of the w ar
while G erm any and G reat B ritain de
stro y each other, and th e n he w an ts to
spread C om m unism over E urope.”
“B ritain still controls the seas.”
“The length of th e w ar depends on
the p ro d u ctiv ity of A m erican factories
in p rep arin g bom bers and o th er im ple
m ents of w ar.”
“I don’t believe a U nited States ex
peditionary force w ill ever be sen t to
E urope.”
Am ong resolutions adopted by South
D akota b an k ers w ere th e following:
“T h at w hereas a bum per crop of
sm all g rain is about to be harv ested in
South Dakota, of w hich it is estim ated
th a t not m ore th a n 20 p er cent can be
handled by storage elevators in this
state; th e term in als and m ills at Min
neapolis, St. P aul and D uluth can take
only a sm all p a rt of th e crop of the
northw est; and th e railro ad s can not
accept g rain unless th ere is a place to
p u t it at once, th a t th e ag ricu ltu ral
com m ittee of th is A ssociation apprise
all m em bers of th e situation, asking
them to confer w ith th e ir farm er cus
tom ers and u rging them to provide
for adequate and approved storage on
th e ir farm s, and
‘T h at th e Com m odity Credit Corpo
ratio n be urged im m ediately to secure
o th er storage facilities th a n country
elevators and so far as possible move
its g rain outside th e state so th a t th ere
w ill be m ore room for th e 1941 crop.
“T h at it is th e consensus of opinion
of our A ssociation th a t m ore can be
accom plished in opposition to th e twocent check tax legislation by cooperat
ing w ith and w orking to g eth er u n d er
th e leadership of th e A. B. A. and th eir
office in W ashington, D. C.
“T h at th e D efense P ro g ram is of vi
tal im portance to th e w elfare of this
co u n try and th a t it is th e patriotic
du ty of all banks in th is state to not
only qualify as issuing agents for De
fense Bonds b u t to energetically sup
p o rt and prom ote th e ir sale to th e
public.”
Sioux F alls w as chosen as th e m eet
ing place for th e 1942 convention.
Head Morris Associates
H arvey L. W elch, vice p resid en t
and m anager of the credit departm ent,
F irs t N ational B ank in St. Louis, w as
elected presid en t of R obert M orris As
sociates, a n ational organization of
financial credit m en, a t th e annual
m eeting held Ju n e 21, a t Skytop, Pa.
He had served as a director, vice p res
ident, and on various com m ittees, and
for m any y ears has been actively iden
tified w ith n ational credit affairs.
W elch is a p ast presid en t of th e St.
Louis A ssociation of C redit Men and
its A d journm ent B ureau, and a form er
director of th e N ational A ssociation of
C redit Men. F o r several y ears he
w as an in stru c to r in C redits and S tate
m ent A nalysis in th e schools of the
A m erican In stitu te of Banking.
He has been connected w ith the
F irs t N ational B ank in St. Louis since
it w as organized, and p rio r to th a t tim e
had been credit m anager of th e Me
chanics-A m erican N ational Bank, a
com ponent u n it of th e F irst N ational.
19
75th A n n iv ersary
STATEMENT
OF
CONDITION
J u n e 30, 1941
RESOURCES
L o a n s and D is c o u n t s ...................................................................................................... $18,655,348.34
O v e rd ra fts ..............................................................................................................................
1,027.31
U . S. G o v ern m en t O b lig a t io n s ................................................................................... 10,246,375.00
S ta te and M u n ic ip a l B o n d s ........................................................................................
5,359,973.93
O th er B o n d s and I n v e s t m e n t s .................................................................................... 3,138,123.86
B a n k in g H o u s e ......................................................................................................
724,000.00
F u rn itu re and F ix t u r e s ....................................................................................................
1-00
I n te r e s t E a rn ed b u t n o t C o lle c t e d ........................................................................
145,330.89
O th er A s s e t s ......................................................................................................................
62,598.52
C ash on H a n d and D u e from F e d e r a l R e s e r v e B a n k and O th er C or
re sp o n d e n t B a n k s ........................................................................................................ 19,350,240.95
$57,683,019.80
LIA BILITIES
C om m on S to c k .......................................................................................................... * .■ •$ 2,000,000.00
S u rp lu s ................................................................................................. * ................................ 2,000,000.00
U n d iv id e d P ro fits .............................................................................................................
262,434.97
R e se r v e fo r C o n t in g e n c ie s ..........................................................................................
163,778.87
R e s e r v e fo r T a x e s , I n te r e s t, e t c ...............................................................................
128,126.78
45,000.00
R e s e r v e fo r D iv id e n d s D e c la r e d and U n p a id .....................................................
I n te r e s t C o lle c te d b u t n o t E a r n e d .............................................................................
16,029.10
D e p o s it s .................................................................................................................................. 53,067,650.08
$57,683,019.80
Member
Federa l Deposit Insurance Corpo ration
N orthw estern Banker
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Federal Reserve Bank of St. Louis
July 19bl
20
W hat Bankers
Tfyttlk of
C urrent Ba n k in g Pro blem s
By Dorothy L. Manuel
E d ito r’s N ote.— D orothy L. M anuel, a stu d e n t at Coe C ollege, Cedar R apids, and a daughter of
E. E. M anuel, p resid en t of the George State B ank, of George, Iow a, w rote a thesis based on the last
tw en ty years of banking. A s a part o f her thesis she m ade a su rvey on current ban kin g p roblem s
and we fe lt that our readers w o u ld be so m uch in terested in this report that we are pleased to present
it in this issue o f the N orthw estern B anker. F rank W arner, Secretary o f Iow a B ankers A ssociation, very
k in d ly assisted M iss M anuel in the preparation of this questionnaire.
The follow ing questionnaire was sent to 365 banks. Of the 365 original number, 256 banks answered
the questionnaire and returned it. The follow ing figures were compiled from the 256 answers.
Q U ESTIO N: SHOULD TH E FE D E R A L D EPO SIT
INSURAN CE CORPORATION BE A
TEM PORARY IN STITU TIO N ?
Answer: Yes
46 or 17.9 per cent
No
203 or 79.3 per cent
In doubt
7 or 2.7 per cent
QUESTION : IN YOUR BANK DO YOU F IN D THAT
THE FD IC HAS ANY IN FLU EN C E ON
SIZE OF DEM AND AND TIM E D E
PO SITS?
Answer:
Yes
166 or 64.8 per cent
No
72 or 28.1 per cent
In doubt 18 or 7 per cent
Q U ESTIO N: DO YOU B E L IE V E COMPULSORY
M EM B ERSH IP IN THE FE D E R A L
R ESE R V E SYSTEM W OULD AID OUR
BAN K IN G SYSTEM?
Answer:
Yes
50 or 19.5 per cent
No
197 or 76.9 per cent
In doubt
9 or 3.5 per cent
Q U ESTIO N : FROM YOUR E X P E R IE N C E IN THE
LAST F E W MONTHS, DO YOU TH IN K
T H ER E W IL L BE AN IN C R EA SE IN
VOLUME OF COMMERCIAL LOANS
AS A RESU LT OF TH E RE-ARM A
M ENT PROGRAM S?
Answer: Yes
165 or 64.4 per cent
No
78 or 30.4 per cent
In doubt 13 or 5.1 per cent
Q U ESTIO N : DO YOU B E L IE V E THE GOVERN
MENT SHOULD CONTINUE TO E X
TEND LOANS AND CREDIT W H IC H
ARE NOT A GOOD R ISK FOR P R I
VATE LOANING IN STITU TIO N S?
Answer: Yes
89 or 34.7 per cent
No
158 or 61.7 per cent
In doubt 9 or 3.5 per cent
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Federal Reserve Bank of St. Louis
Ju ly 19^1
QUESTION : W ILL BANKS CONTINUE TO IN V EST
IN GOVERNM ENT OBLIGATIONS?
Answer: Yes
203 or 79.6 per cent
No
22 or 8.5 per cent
In doubt 30 or 11.8 per cent
QUESTIO N: DOES THE F E D E R A L R E SE R V E
SYSTEM, AS IT IS
NOW, TEND
TO C EN TR A LIZE BANKING MORE
THAN IS ADVANTAGEOUS?
Answer: Yes
108 or 42.1 per cent
No
127 or 49.6 per cent
In doubt 21 or 8.2 per cent
QU ESTIO N : DO YOU FAVOR A CONTINUATION
OF THE PR IV A TELY -O W N ED DUAL
SYSTEM OF BANKING?
Answer: Yes
238 or 92.9 per cent
No
14 or 5.4 per cent
In doubt 4 or 1.5 per cent
Q UESTIO N: IN YOUR B A N K I N G
CAREER,
WOULD YOU SAY THAT BANK E X
AM IN ERS HAVE H E L P E D YOU IN
FORM ULATING SUCCESSFUL P O L I
CIES AND PLA N S?
Answer: Yes
202 or 78.9 per cent
No
36 or 14.06 per cent
In doubt 18 or 7
per cent
QU ESTIO N : DO YOU B E L IE V E TH ER E SHOULD
BE F U R TH ER D EV ELO PM EN T INTO
MORE D IV E R S IF IE D F IE L D S OF
LEN D IN G ACTIVITY, SUCH AS P E R
SONAL LOANS, INSTALLM ENT, F I
NANCE LOANS, CHECKING SERV ICE
FOR NON-DEPOSITORS, B IL L -PA Y
IN G SERV ICE, ETC., BY IN D IV ID U A L
BANKS?
Answer: Yes
171 or 66.7 per cent
No
70 or 27.3 per cent
In doubt 15 or 5.8 per cent
21
N e w s a n d V ie w s
OF
THE
B A N K IN G
W O RLD
By Clifford D ePuy
In these days, w h en an in v estm en t
banker or a stock b ro k er proposes
m arriage, we u n d e rsta n d th a t his “ap
p ro ach ” is som ething like this:
“I t is reported by u sually reliable
sources in the v ic in ity of m y chest
th a t I am m adly in love w ith you. In
m y opinion yo u should sw itch out of
single blessedness into m arriage.
“W h ile n e t earnings fo r the first half
of 1941 should approxim ate $18.67 after
all taxes, but before depreciation, com
pared to $23.05 fo r a like period last
year, n everth eless it is believed
that the su b stantial savings effected
thro u g h the m erg er suggested above
w ould resu lt in a n e t incom e fo r the
fu ll year m aterially better th a n that
of 1940.
“W ith o u t tryin g to influence you u n
duly, I hope th a t yo u w ill give this
idea som e consideration.
“W ill yo u m a rry me?
“(T h e above sta tem en ts are obtained
fro m sources w h ich I believe to be
reliable, but are n o t to be considered
representations by m e .)”
W illiam D uncan, Jr., secretary of
th e M innesota B an k ers A ssociation,
w as com plim ented on all sides for th e
fine pro g ram w hich he had for th e
52nd a n n u a l convention a t St. Paul.
He left p len ty of tim e for visiting
and inform al chats, and, a t th e sam e
tim e, gave tw o o u tstan d in g p rogram s
w hich w ill be long rem em bered. The
T h u rsd ay evening p ro g ram w as given
over to Joseph D un ninger, “The
m asterm in d of m odern m y ste ry ,” an d
on F rid a y m o rn in g a t 10:30 H. V. Kaltenborn held his audience w ith in ten se
in te re st u n til 12:00 noon.
O utside of th e fact th a t it rain ed
every day d u rin g th e convention, it
w as an o u tstan d in g m eeting.
K. O. Sattre, vice p resid en t of th e
Blue E a rth State B ank of Blue E a rth ,
M innesota, and re tirin g p resid en t of
th e M innesota B an k ers A ssociation,
told th e convention a t St. P au l th a t
th ere w ere now 22 county clearing
house associations in th e state, and
th a t conferences in b an k salesm anship
w as th e m ain object of th ese g a th
erings.
He also said th a t 96 p er cent of th e
ban k s are now m em bers of th e state
association, and th a t d u rin g th e past
y ea r th e re had been an increase of
$45,000,000 in loans and $65,000,000 in
deposits.
He pointed out th a t less th a n 20 per
cent of all depositors ever apply for
credit, and th a t th e o ther 80 p er cent
use th e b an k for safekeeping and
checking service.
Mr. S attre said, “W e are now urged
to save for a rain y day, afte r being
told to spend to prosper. T he old
fun d am entals in g ran tin g ban k credit
and m aking loans are still sound.”
H arry AVilkinson, w ho is now 83
b u t looks only 63, has disposed of the
Chicago B a n ker to R euben L ew is, Jr.,
w hich h e re a fter w ill be know n as
Finance. Mr. Lew is w as form erly ex
ecutive vice p resid en t of th e M etro
politan T ru st Com pany of Chicago.
H a rry w ill still continue as editor
of th e reorganized publication, and
th e re is probably no one b etter liked
or b e tte r know n in A. B. A. political
circles th a n H a rry W ilkinson.
W. H. B ren ton , vice presid en t of th e
N o rth w est B ancorporation, w ho had
plan n ed to re tu rn to Des Moines about
Ju ly 1st, has now postponed his re
tu r n u n til Septem ber 1st.
Joe F. R ingland, presid en t of the
Stock Yards N ational B ank of South
St. Paul, is spending the m onth of Ju ly
a t his cottage a t Lake Okoboji, Iowa.
He expects to have his golf score so
low before th e m onth is over th a t he
w ill be real tough com petition.
A. E. F elsted , ad v ertisin g m anager
of th e F irs t N ational B ank of St. Paul,
has been spending his vacation in V ir
ginia—no doubt com paring those V ir
ginia ham s w ith th e ones from M in
nesota.
A lex H igh lan d, presid en t of th e E m
pire N ational B ank and T ru st Com
p any of St. Paul, is v ery proud of his
organization, and w as introducing
m em bers of his staff at th e “social
h o u r” du rin g th e M innesota conven
tion. Am ong o th er charm ing m em
b ers in his organization is M iss D or
oth y P ainter, w ho w as a m em ber of
th e w om en’s com m ittee w hich helped
to a rran g e for th e ladies du rin g the
convention.
A rthur D eB ebian, second vice p resi
d en t of th e Chase N ational B ank of
N ew York, has been appointed New
York publicity ch airm an of th e U nited
Service O rganization.
The U. S. O. is planning to raise
$10,000,000 th ro u g h o u t th e U nited
States for th e purpose of providing
recreatio n centers n ear cantonm ents
and naval bases for th e arm y and navy
boys. T his m eans creating clubs and
fu rn ish in g sports equipm ent, e n te r
tainm ent, reading m a tte r and tra n s
p o rtatio n facilities.
F red A. Irish, presid en t of of F irst
N ational B ank and T ru st Com pany of
Fargo, N o rth D akota, and ch airm an of
th e A g ricu ltu ral Com m ittee of the
N o rth D akota B ankers A ssociation,
w hich included F. A. F o ley , p resid en t
R ollette County Bank, Rolla, N. D.;
Clarke B assett, vice presid en t M er
ch ants N ational B ank & T ru st Co.,
Fargo, N. D.; C. C. W attam , secretary
N orth D akota B ankers A ssociation,
Fargo, N. D.; A. L. N etcher, Fargo,
N. D., and D ugald S tew art, p resid en t
F irs t N ational Bank, Bowm an, N. D.,
has m ade an o u tstandin g record as in
dicated by th e an n u al re p o rt of the
A g ricu ltu ral Com m ittee of th e N orth
D akota B ankers A ssociation, w hich
w as issued recently. T his re p o rt cov
ers th e operations of th e com m ittee
d uring th e calendar y ear 1940 and
w hich resulted in th e te n th consecu
tive y ear of 1,000 per cent rating, of
w hich th e state m ay be ju stly proud.
A t th e ann u al m eeting of th e A m er
ican B ankers A ssociation to be held
in Chicago this fall, D an H. Otis w ill
p resen t a special plaque in recognition
of this w ork to F red A. Irish and his
com m ittee.
B en D uB ois, secretary of th e Inde
pendent B ankers A ssociation, w ith his
office a t Sauk Centre, M innesota, in a
recen t bulletin called atte n tio n to the
proposal to give control of b ank divi
dends to th e C om ptroller’s Office,
w hich proposal w ould be a v ery u n
sound piece of legislation.
Mr. DuBois says: “The proposal now
before th e Senate to give control of
ban k dividends to th e C om ptroller’s
Office and th e FD IC is dangerous in
th e extrem e. I t would, as one of our
m em bers w rites, m ean th e end of in
dependent capital in th e banking busi
ness. Now the supervisory offices
m u st show w h y a bank cannot pay a
dividend. U nder th is proposal the
b ank w ould have to show w h y it
could pay a dividend. It w ill be plac
ing th e shoe on th e w rong foot.”
Dr. George Gallup, in a recen t su r
vey, proved th a t labor leaders are be
com ing exceedingly u n p o p u lar in con
nection w ith th e ir strik es and th e ir
effect on our n ational defense p ro
gram .
N orthw estern B anker
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Federal Reserve Bank of St. Louis
July 19bl
22
T he question he asked and th e an
sw ers are as follows:
“D o yo u th in k u nion labor leaders
are h elp in g the nation al d efen se pro
gram as m uch as th ey should?
Labor L eaders H elp in g
12%
Labor L eaders N ot H elp in g
78%
U ndecided
10%
R. W . Sinsabaugh of Clarke, Sinsabaugh and Com pany of New York,
In v estm en t Counsellors, told the Min
nesota B ankers that: “T he incentive of
fear and n ot of increased pay or own
ership of p ro p erty is th e m otivating
force of Naziism.
“A fter th e w ar E urope w ill need
food and m achinery, and h er need w ill
be based on scarcity, w hile th e prob
lem s of th e U nited States w ill be based
on a su rp lus and u n em p loym en t.”
The o th er day we received an invi
tatio n to become a non-resident m em
b er of th e Cham ber of Commerce of
th e S tate of New York, w hich w as
founded in 1768.
P ercy H. Joh nston, ch airm an of th e
board of th e Chem ical B ank and
T ru st Company, is p resid en t of the
Cham ber of Commerce and is m aking
an active drive for new m em bers.
W e w ere in terested to note in a
folder w h ich w a s enclosed that: “T his
is the old est and m ost influential
Cham ber in th e U nited States, and the
old est of its k ind in the w orld. For
173 years it has left a clearly defined
im prin t upon the ou tstand in g m en in
every gen eration. It is more than its
nam e. The Cham ber took leadership
in such notable a ch ievem en ts as first
A tlantic cable, A m erican M erchant
M arine, N ew York C ity’s first subw ay,
E rie canal, ex ten sio n N ew York’s
w ater su pply, P ort of N ew York A u
thority, and th e N ew York State Mer
ch an t M arine A cadem y is its p rotege.”
Jam es G. B laine, p resid en t of th e
M arine M idland T ru s t Com pany of
New York, in a recen t address before
th e New Y ork State B ankers Associa
tion, pointed out th a t in 1914 our g o v
ern m en t sp en t only 8% p er cent of
our national income, w hile in 1940, it
spent 27% p er cent. In 1914, all g o v
ern m en tal expenditures, federal, state
and local, w ere $3,000,000,000. W hile
in 1940 th ey w ere 19 and th ree-q u arter
billion, and th is figure w as before the
heavy defense and lease-lend ap pro
p riations w ere made.
B. A. Talle, cashier of th e F irs t N a
tional B ank of K iester, M innesota, is
v ery proud of th e fact, and ju stly so,
th a t his bank now has deposits of over
a m illion dollars and is located in a
tow n w ith a population of 407 people.
(T u rn to page 47, please)
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Federal Reserve Bank of St. Louis
Ju ly Í9J1
It’s the
Busy
Prospect W h o Has
The M oney to
ODAY our in d u stry is confronted
w ith th e g re a te st challenge of its
existence. W e as a p a rt of th is in
d u stry m u st visualize clearly our place
in th is g re a t p ictu re as we stan d ready
to deliver our share of assistance in
th e building of our defenses. W e are
in a position to supply m uch to th is
effort, relieving as we do hazards,
both foreseen and unforseen, lying
in th e p a th of everyone. W e fu rn ish
life in su ran ce for our in d u stries on
th e lives of w orkers, accident and
h e a lth in su ran ce to g u ard th e ir in
comes, w o rk m en ’s com pensation to
cover th e h azards of in d u stria l ac
cidents, th e m an y form s of p ro p erty
dam age and liability in su ran ce cov
erin g th e legal liabilities of th e p e r
sons in su red to o th er persons. These
are b u t a few of th e h u n d red s of
know n h azards of w hich our in d u stry
u n d ertak es to absorb th e shocks.
B ut let us exam ine specifically ju st
w h a t our in d u stry m eans to our n a
tional defense effort. F irst, let us
look a t th e b uilding of defense plants.
T his co n stru ctio n is being u n d e rta k e n
p rim a rily by p riv ate co n tracto rs op
e ratin g w ith th e use of th e ir ow n
capital and faced w ith innu m erab le
hazard s over and above th e norm al
hazard s of th e b u siness itself, such
as th e m aking of estim ates or th e h ir
ing of help. T hese e x tra hazard s or
liabilities req u ire th a t financially re
sponsible persons, or corporations,
fu rn ish bonds g u aran teein g th e com
pletion of th e w o rk com m enced an d of
th e p ay m en t of th e fu rn ish e r of m a
teria ls and labor. T hese u n d e rta k in g s
req u ire adequate pro tectio n ag ain st
th e hazard s of fire in th e v arious
stages of com pletion and th e fu rn ish
ing of com pensation for in d u stria l
accident and occupational diseases to
th e m en w ho do th e labor.
The tru c k s h au lin g th e supplies,
steam shovels digging foundations, th e
tra n sp o rta tio n facilities to an d from
T
By Clyde W . Young
President Monarch Life Insurance Company
Springfield, Massachusetts
th e scene of operation all requires sim
ilar coverages in an endless spreading
chain, coverages th a t only th e in su r
ance in d u stry is prep ared to offer, u n
d ertak e and discharge.
In th e building of a defense plant,
CLYDE W. YOUNG
in su rance begins to play its p a rt long
before th e first shovel full of e a rth is
tu rn e d and n ever ceases th ereafter,
th o u g h th e form s req u ired m ay
change rapidy w ith the various stages
reached.
T hen afte r a p lan t has been com
pleted and its operations commenced,
th e p a rt th a t insurance plays becomes
even m ore pronounced. E v ery m inute
detail at some tim e or an o th er is sub
ject to some form ' of insurance di
rectly or indirectly.
Buy
T hen tu rn in g from th e physical
p lan t itself to th e operations we
find insurance ju st as necessary and
everyw here present. As I pointed
out, in su rin g m achinery is a usual
practice and covering th e w orkm en
w ith com pensation insurance is n o r
m ally req u ired by law everyw here,
and in th e offices and sales branches
of a defense p lan t o th er form s of in
surance are basic requirem ents. P e r
sons handling funds m u st be bonded.
I believe we now have before us a
fairly com prehensive p icture of the
p a rt insurance generally plays and
w ill continue to play in our national
defense efforts. Now let us look at
the p a rt to be played by our own spe
cial fields of endeavor in th is g reat
industry. I refer specifically to acci
dent and h ealth and life insurance.
We all w rite one or th e other, or both,
so I feel perfectly free to talk about
them together.
L et us look first a t accident and
h ealth insurance and its p a rt in n a
tional defense. As I m entioned, wise
m anagem ent req u ires th a t m achinery
used in production be adequately in
sured against all reasonable hazards.
P ru d e n t personal m anagem ent like
w ise requires th a t th e m an operating a
m achine be in su red against the p aral
lel hazards. I feel th a t the privately
operated in surance com panies are p re
pared to fill th is req u irem en t b etter
th a n it can be accom plished by any
o th er know n m eans, and th a t th ey are
doing it now. I am certain th a t never
in the histo ry of the N ation has th ere
been a g reater need th a n a t presen t
for th e services of our industry.
The im portance of life in surance in
th e national defense effort is equally
g reat because it keeps th e fam ily going
and stabilizes our n ational economy.
I do not feel th a t I have to enlarge
upon eith er of these them es because I
believe we are all fam iliar w ith the
u ltim ate purposes of life insurance
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Federal Reserve Bank of St. Louis
Ju ly 19 M
24
and its dem onstrated influence on our
w ay of life.
My purpose is n ot so m uch to exam
ine th e im portance of our b ranch of
th e in d u stry as it is to show th e grave
resp onsibility restin g upon us in the
days ahead. The in su ran ce w orld is
speeding up. A gents w ho are not
u sing today’s selling technique are
going to be left behind. Com panies
w hich live solely in th e p ast w ill re
m ain in th e past. Too m any of our
com panies live so m uch of th e ir busi
ness lives in th e p ast w hich th ey th in k
w as better, or in th e fu ture, w hich
th e y expect w ill be b etter, th a t th ey
com pletely overlook th e p resen t—
w hich th ey can m ake b etter.
I do feel, how ever, th a t a new p e r
spective has been given to a m ajority
of th e executives in our business. We
have seen a w orld change from the
appearance of relativ e secu rity to one
of daily changing insecurity. N ever
theless, I am convinced th a t we have
w ith in our hands th e solution of w h a t
ever problem s face us a t present, and
w h atev er problem s lie before us.
I believe we are all clear on one
poin t—th a t w ith o u t h a rd w ork we
shall not be able to accom plish m uch.
W e can see b e tte r business ahead b u t
th a t does not m ean th a t th e ag en t’s
job of selling is going to be any easier,
or th a t people are going to have auto-
MERC
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MUTUAL
BONDING
COMPANY
Incorporated 1933
Home Office
V A L L E Y B A N K B U IL D IN G
Des M oines, Iowa
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O M A H A 'S W ELC O M E
TO T H E W O R L D !
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m atic and spontaneous faith in th e
A m erican Agency System . T h at is
w here th e w ork factor comes in. To
get th e u n d erstan d in g and apprecia
tion along w ith th e g re a te r volum e
of business w hich we all desire, m uch
in telligent w ork m u st be done.
Prospects are h a rd e r to see in tim es
like these and th ey have less tim e to
discuss m atters aside from the direct
point in question. T h a t does not m ean,
how ever, th a t th ey are unapproachable
or th a t th ey are less conscious or less
receptive to our m essage. It m eans
th a t our m essage m u st be clearer,
shorter, an d m uch m ore to th e point—
th a t we u n d erstan d our m essage clear
ly ourselves and th a t our field forces
constantly rem in d th e public of th e
th in g s we are try in g to do to b e tte r
our relations w ith them . I said th a t
b e tte r business does not m ean easier
selling and th a t busy m en are h a rd e r
for agents to see. T his is fu n dam ental
b u t it is also fu n d am en tal th a t busy
m en have th e m oney to buy and th a t
is w h at counts.
In th e m onths ahead our best pros
pects w ill be found in those occupation
groups receiving the increased incom e
b ro u g h t about by our national defense
effort. T his has been called a “w ork
ing m an ’s boom,” and w ith good re a
son for, it is th e w age earners, p articu
larly in th e skilled occupations, w ho
are m ost certain to be benefited by th e
defense program . T here is such g reat
dem and for th e ir services th a t sh o rt
ages have been created, w ith th e resu lt
th a t th e ir earn in g pow er has risen ra p
idly. Upon them w ill fall a sm aller
ta x bu rd en p ro p o rtio n ately th a n upon
any o th er class, w hile th e h ith e rto
m ore prosperous groups from w hom
m any of the com panies drew largely in
th e p ast are th e chief b earers of new
taxation. By th is I refer to th e m iddle
classes and u p p er m iddle classes upon
w hom th e increased ta x b u rd en w ill
fall m ost heavily. You have already
seen th e effects of some of these
changes in y o u r own com m unity and
as tim e goes on th e fact w ill become
even m ore apparent.
The lines are draw ing tig h ter, and a t
th e sam e tim e, clearer. W e shall all
have to en dure sacrifices in th e com
pletion of our n ational defense effort,
b u t it is com forting to realize th a t in
th e fashioning of th e w eapons neces
sary to defend a w ay of life in w hich
we have all placed our faith and hope,
th e business of insu ran ce can play
such a v ital part. In our ow n b ran ch
of th e business, th e accident and
h ealth and life in surance salesm en
can be certain th a t he is doing p a tri
otic w ork w hen he encourages anyone
to buy as m uch accident an d h ealth
and life in su ran ce as he can afford.
The in su ran ce sold w ill perform th e
25
n a tu ra l functio n of keeping th e fam ily
going an d a t th e sam e tim e help sta
bilize th e n atio n al econom y th ro u g h
stim u latio n of saving and th rift.
T he A m erican A gency System has
been b itte rly criticized, ju s t as th e
A m erican System of C apitalistic F ree
E n te rp rise has been criticized. Yet, in
spite of every th in g , I feel th a t th e de
velopm ent of our business an d its
rap id expansion w as due so m uch to
th e efforts of agents an d th e agency
system as to overshadow o th er ac
com plishm ents. I feel th a t m uch of
th is criticism has been constructive
in th a t w e have ta k e n effective m eas
ures to correct erroneous im pressions
abo u t th e b u siness of insurance. N oth
ing w as ever gained by sidestepping
issues an d I believe w e all have
learn ed th e value of th is in th e recen t
past.
W e m u st n ev er tak e our business
and its im portance for g ranted. If it is
tru ly th e g re a te st service of all, we
m u st do less talk in g ab o u t it am ong
ourselves and m ore talk in g ab o u t it to
th e public. W e m u st get over to th e
public again and again th e facts ab o u t
th e b u siness of insurance, ab o u t its
safety, ab o u t its sound operatin g m e th
ods, its in v estm en t stre n g th , and its
agency service. W e m u st w o rk con
sta n tly to s tre n g th e n public fa ith in
our business, rem em b erin g th a t w e are
in a b e tte r position to change th e criti
cal m oods of th e public to w arm
friendliness, th a n anyone else, and
th a t we can do so p rin cip ally by doing
a b e tte r job.
Last Meetings
A lert in te re st in th e ir com pany’s af
fairs, an d a frien d ly response to efforts
to inform , ch aracterized th e a ttitu d e of
policyholders a tte n d in g th e series of
te st m eetings com pleted last m o n th by
N o rth w e ste rn N ational Life, in its new
ex p erim en t in policyholder relations.
“T he ex p erim en t w as a g ratify in g suc
cess, an d we are considering co n tin u
ance of th ese m eetings on a n extended
scale n e x t fall,” said O. J. A rnold, p re s
ident.
M any policyholders drove 30 an d 40
m iles an d one drove 65 m iles, to a tte n d
th e m eetings, th e first of w hich w as
held a t F erg u s Falls, M innesota, th e
second a t M antako, M innesota, and
th e final one of th e te s t series a t Jam es
tow n, N o rth D akota.
T he plan of th e m eetings w as b u ilt
aro u n d re tu rn s from a p revious le tte r
of in q u iry sen t out by Mr. A rnold to
a w idely d istrib u te d list of 1,000 policy
holders. T he le tte r asked th em to ex
p ress th e ir in te re st or lack of in te re st
in th e policyholder m eeting project,
and to list th e subjects w h ich th ey
w ould like discussed, and th e ques
tions th e y w ished answ ered, a t such
m eetings.
“B ringing th e Com pany to th e Pol
icyholder” w as the them e of th e m eet
ings, held in th e ballroom of th e p rin
cipal hotel of each city. Blown-up
p h otographs of th e hom e office, and
o th er pictures and illu strativ e m odels
of typical in v estm en ts in th e portfolio,
show ed policyholders how th e ir b u si
ness is handled and how prem ium dol
lars keep th e w heels of g o vernm ent
and in d u stry tu rn in g .
An address and rep o rt by Mr. Ar-
nold opened each of th e th ree m eet
ings. T his w as follow ed by a soundfilmslide featu re developed by th e com
pany earlier th is year, w hich strip s
life insurance to its ABC’s, and show s
how it functions, as a g reat club of
people sh arin g each o th e r’s risks.
The film featu re w as followed by a
question and answ er session, presided
over by Mr. Arnold. O ther hom e office
executives w ho attended each m eeting
took p a rt in th e discussions an d an
sw ered queries relatin g to th e ir own
J ltu u eA i G o d t
Our policy provides a maximum
assessment of 2 !/^% in Zones
One and Two—and 3 ^ % in
Zone Three (Western Iowa).
D es M oines, Iow a
Hawkeye Mutual Hail
BANKER
AGENTS
W ANTED
Insurance Association
Carver Bldg.
T he oldest mutual company of its
kind in America offers liberal
agency contracts covering—
•
EMPLOYERS
MUTUAL
AU TO IN S U R A N C E
9 TOR N AD O IN S U R A N C E
9 TOW N D W E LL IN G IN S U R A N C E
CASUALTY COMPANY
DES MOINES
9 H A IL IN S U R A N C E
on Grow in g C r o p s
An Agency Company — Assets Over $4,000,000
Over $1,250,000 cash surplus—
Automobile Insurance
• Automob
Workmen’s Compensation
• Woi
General Liability
• Elevator Insurance
• Plate Glass Insurance
48 years of proven protection.
l
L
W r it e
Lc
f o r o u r l ib e r a l p r o p o s itio n
ban k r e p r e s e n ta t iv e s .
to
Fort D odge, Iowa
ASSETS, SURPLUS MOUNT for
ALLIED MUTUAL
Insurance a g e n ts sent more ca su a lty
b u sin ess to A llied M utual during the first
six m onths of 1941 than for a n y like period
in this com p an y's history.
A ssets a n d surplus kept p a c e w ith this
sp len d id prem ium in crea se. T oday A llied
M utual is b igger, stronger and m ore a b le
to serv e than ev er before.
ALLIED MUTUAL
CASUALTY
COMPANY
Harold S. Evans, President
Hubbell Bldg.
Des Moines, Iowa
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Ju ly 19^1
26
p a rtic u la r departm en ts. P r e v a i l i n g
questions related to effects on in s u r
ance ra te s of increased taxes, pro s
pects for inflation, social secu rity a n
gles, d isability featu res, dividend re
ductions, w a r clauses. One w om an
w an ted to know in w h a t k in d of m oney
in su ran ce proceeds w ill be paid if th e
n atio n ’s m o n etary stan d ard s should
change.
A social “m ix er” w ith re fre sh m e n ts
follow ed th e q uestion an d an sw er ses
sion, w ith officers an d hom e office exec
utiv es conducting policyholders am ong
th e exhibits. O p portunity w as given
a t th is tim e for policyholders to ask
p riv ate questions about th e ir ow n in
su ran ce problem s a t a desk presided
GENERAL
i f
M (H 0 R S
over by th e head of th e com pany’s pol
icyholder service departm ent. The en
tire m eeting w as k ep t free from any
h in t of sales solicitation and policy
holders w ere assu red in Mr. A rnold’s
opening address th a t th ey w ould not
expose them selves to any such solici
tatio n as a re su lt of atten d in g such
m eetings.
Wilfred Kurth Resigns
A nnouncem ent has been m ade of the
resig nation of W ilfred K u rth as ch air
m an of th e board of directors of The
Hom e Insu ran ce Company. The board
accepted his resig n atio n w ith g reat re
luctance and voted by a change in th e
by-laws to abolish th e office of ch air
ACCEPTANCE
r
CORP ORAT I ON
is engaged primarily in facilitating wholesale distribution
and retail sales of the following products of General
Motors Corporation and its world-wide affiliates:
CADILLAC,
BUICK,
OLDSMOBILE,
PONTIAC,
CHEVROLET
automobiles; f r i g i d a i r e appliances for refrigeration and
air conditioning; d e l c o lighting, power and heating
equipment; GMC trucks; BEDFORD, v a u x h a l l and other
foreign made automotive vehicles.
The business consists of investments in self-liquidating
credits, widely diversified as to region and enterprise,
capital employed being in excess of $80,000,000.
In obtaining short term accommodation, g m a c issues
one standard form of note. This obligation it offers to
banks and institutions, in convenient maturities
and denominations at current discount rates.
GENERAL
MOTORS
INSTALMENT
P L A N
These
notes
are available, in limited amounts,
upon request.
EXECUTIVE OFFICE
NEW YORK
N orthw estern B anker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
BRANCHES
IN PRINCIPAL CITIES
Ju ly 19M
man. H arold V. Sm ith, w ho w as elected
president of th e com pany on M ay 10,
1937, th e sam e day Mr. K u rth becam e
ch airm an of th e board, now becomes
chief executive of th e com pany. Mr.
K u rth w as elected ch airm an of th e fi
nance com m ittee and w ill continue to
in terest him self in th e financial end of
the com pany’s affairs. T he sam e ac
tion w as tak en at th e board m eeting
of th e City of New Y ork In su ran ce
Com pany and sim ilar action is contem
plated in th e nex t board m eetings of
th e o th er com panies in th e H om e
Fleet.
SERVE THE PUBLIC AT
A PROFIT
(C ontinued from page 11)
know w h eth er it is going or com ing
and how fast.
4. An effort should be m ade to direct
all sm all unsecured loans to th e in
stallm en t departm ent.
5. The person in charge of th e de
p artm e n t should be given an oppor
tu n ity to a tten d consum er credit con
ferences and conventions so th a t he
m ay absorb some of th e technique of
this new kind of banking from th e
leaders in th is field. B ut don’t encour
age him to become th e kind of con
vention-goer w ho th in k s th a t b anking
consists of know ing th e first nam es
of all th e pro m in en t financiers in th e
country.
In th is connection I w ish to say
th a t th e personnel problem in th e con
sum er credit field is an acute one. The
average ban k em ploye w ho has been
engaged in ro u tin e w ork of an ac
counting n a tu re or as a teller, is rarely
fitted for th is departm ent. I have al
w ays said, th a t w h at we w a n t in this
d ep artm en t is m en w ith all th e expe
rience, qualifications, know ledge of
h um an n atu re, logical reasoning pow
ers, etc., of experienced loaning officers
w ith o u t eith er th e title or th e salary.
T his w ork is no place for tim e
servers, clock-w atchers, or office poli
ticians w ho spend m ost of th e ir tim e
in th e boss’s office.
In th is field of b an king w h at we
need are train ed loan salesm en. T hey
should have a w orking know ledge of
com m ercial law. T hey w ill have to
know docum ents and be thoroughly
fam iliar w ith collateral agreem ents,
ch attel m ortgages, conditional sales
contracts, bills of sale, and w h at not.
The sim ple form ula of a $200 personal
loan w ith tw o good co-m akers is no
longer of m uch use. W here th e re w as
one w ay of m aking a personal in stall
m ent loan fifteen years ago, th ere are
now dozens of devices. T his is one of
our m ost serious problem s. C hanging
conditions and increase in volum e is
m aking heav ier and h eavier dem ands
(T u rn to page 48, please)
27
The Month’s Market Maneuvers
In Ju n e eig h t n a
tions declared w ar
on R ussia—th e last
and probably least
i m p o r t a n t being
A lbania. The m a r
k ets i n t e r p r e t e d
t h i s a s b u llish —
both stocks and
bonds w ere stro n g
JA M ES H. CLARK E
e r — h e l p e d in no
sm all m easure by th e increased tem po
of our ow n defense activities. W ith
R ussia in th e w ar and G erm any b a t
tlin g on tw o fro n ts—th in g s w ere a bit
m ore ch eerful for investors. If R ussia
can d iv ert H itle r for a tim e, we can
be m ore n early p rep ared —E n gland
w ill be stro n g e r—and the m ark ets like
th a t type of news. If, how ever, th e
R ussians collapse quickly and th e
G erm ans rem ove th a t th re a t—and get
th e fertile lands in th e U kraine and
u n lim ited oil supplies—a second a p
p raisal w ill be in order.
A s indicated earlier—the stock m ar
k et w as strong. T his afternoon—M on
day, June 30th — as w e w rite this,
prices are saggin g som ew h at, but v o l
um e of trading is too sm all to be of
im portance. The D ow -Jones closin g
average on May 31 for in du strial
stock s w as 116.23, today it w ill be
above 123— or a rise of about seven
points. V olum e of trading again re
m ained low and in no sin gle day w ere
as m any as one m illion shares traded.
T h us w e have com pleted a h alf year
w ith o u t volu m e of th at size—alm ost
an unheard of developm en t in m oder
ate m arkets. A nd a good indication of
th e caution of in vestors.
One other help fu l factor in the stock
m a rk e t is w o rth m entioning.
An
n o u n cem en t th a t th e R F C was consid
ering a loan to E ngland secured by
its A m erica n in v e stm e n ts rem oved
som e fears of large liquidation by
Great B ritain. D uring the m o n th ,
there w ere tw e n ty -six days on w h ich
th e m a rkets w ere open fo r business.
On fifteen days industrial sto ck prices
advanced, one day there w as no change
in th is average— te n days saw declines.
The bond m a rk e t also im proved in
Ju n e —despite th e fact th a t w ars and
heavy financing, p re se n t and fu tu re,
are supposed to b rin g declines. Ap
p a re n tly not, how ever, in a m anaged
econom y. T he T re a su ry 2 %’s of 1965
w ere priced a t 111 on th e bid side on
M ay 31—today th e y are 111.17. The
Prepared for
The Northwestern Banker
By James H. Clarke
Assistant Vice President
American National Bank & Trust Co.
Chic ago
new taxable issue of 2%’s due in 1958
w as quoted 103.1—is now 103.31. D ur
ing th e m onth, th e RFC th ro u g h the
T re asu ry sold a half billion of one per
cent notes due A pril 15, 1944; $211,000,000 w ill be used to refu n d the % ’s due
Ju ly 20 th is y ear—th e balance is new
m oney. T his issue w as w ell over sub
scribed—allotm ents w ill be on a basis
of 7 p er cent of subscriptions—and the
notes are bid 100.23 today.
The corporate bond m arket w as
quite strong, w h ile m unicipal bonds
w ere firm. In certain cases quite a
bit of strength w as in evidence. The
“M ilw auk ee” R ailroad general 4’s of
89 Avere up alm ost fi\re points—the
W abash first 5’s of 39 closed th e m onth
around 61 after sellin g at 5514 a m onth
before.
The u tility m arket didn’t
change m uch. H ere and there it eased
s o m e w h a t — C om m onw ealth E dison
314’s of 68 w ere off a point as w ere
B rooklyn E dison 314’s- Price changes
of im portance did not develop.
T here AAere a few n ew issu es of cor
porate bonds w h ich should be m en
tioned. Today (M onday, June 30), a
syn dicate purchased and offered for
resale $13,700,000 of debentures of Mc
K esson & R obbins, priced to yield 3.10
per cent—plus som e preferred stock.
Too early to tell y et w hat the reception
of th ese bonds w ill be. The largest is
sue of the m onth \Aras an offering of
$48,000,000 of P hiladelp hia Com pany
4 1/4,s of 1961 priced at 10214 to yield
4.07 per cent— plus $12,000,000,000 of
2% per cent n otes due serially from
1942 through 1951. Both the deben
tures and the n otes Avent Avell and
Avere bid up above the offering prices.
The C hicago U nion Station sold serial
bonds in the am ount of $6,860,000 due
from 1942 to 1951— Avhile Southern
N atural Gas offered $13,000,000 of 1st
314’s of 1956 at 103. The W all Street
Journal in its quotations on i i c a v issu es
sh ow s a bid of 103%. E ots of equip
m ent tru st issu es w ere sold in the m ar
k et by a num ber of different railroads.
In fact, so m any cam e into th e m arket
that prices eased som ew h at. A n in di
cation of th is trend— NeAV York, Chi
cago & St. L ou is sold equipm ents early
in the m onth, rated Baa, the ten year
m atu rities being sold on a 2.10 per cent
basis— late in the m onth NeAA" York
C entral offered equipm ents, rated A,
the ten y ear bonds being sold on a
2.60 basis.
The m o st im portant developm ent
during the m o n th in the relationship
betw een business and govern m en t was
the conflict betw een Mr. H enderson of
O.P.A.C.S. and Chrysler. H enderson
has threatened to p u t a ceiling on all
car prices follow ing C hrysler’s refusal
to reduce prices again. C hrysler’s an
sw er is three fold—(1) Profits for the
year ended M arch 31, 1941, equalled
$30.47 per car, (2) Payroll m aterial,
tool and su p p ly costs have increased
$27.55 per car, (3) The increase in the
price of cars to consum ers is $26.62 per
car. Sounds like C hrysler has a p re tty
good argum ent there. Certain it is
that the M ediation Board can not fo l
low a policy of settling strikes by the
sim ple expedient of getting the em
ployer to grant all increases asked—
and on the other hand force the em
ployer to absorb all these new costs.
W ith G erm any and h er Allies fight
ing R ussia and E ngland th e probabili
ties of an increase in th e length of the
w ar are better. If G erm any gains
control of R ussia’s oil resources, she
w ill be in a good position for a long
w ar—th e defense effort of the U nited
States is having the sam e effect on
E ngland. D uring th e n ex t several
m onths we shall see g reat efforts in
W ashington to control prices—to p re
v en t inflation—to keep a steady bond
m a rk e t—and to finance defense efforts
at around a 2% p er cent rate.
Keep one eye on rising prices—the
o th er on Mr. H enderson—you w ill
find m uch to in terest you in th e days
to come.
Seventh Largest Association
The Tw in City F ed eral Savings and
Loan A ssociation of M inneapolis, ac
cording to Roy W. L arsen, vice p resi
dent, is now th e seventh larg est F ed
eral Savings and L oan A ssociation in
th e U nited States, and one of the
fastest grow ing.
M em bers of the A ssociation have
increased th e ir accounts m ore th a n
$2,000,000 in th e p ast six m onths, th is
being th e largest grow th th e associa
tion has had in any six m onths period
in th e ir history.
The dividend rate continues to be 3
N orthw estern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19M
28
p er cent and th e directors recen tly
declared th e 37th consecutive divi
dend.
Dividend
A t th e re g u la r m o n th ly m eeting the
board of directors of T he N o rth ern
T ru st Company, Chicago, declared the
174th consecutive q u a rte rly dividend
am o u n tin g to $4.50 a share, payable
Ju ly 1, 1941, to stockholders as of
Ju n e 17, 1941.
Edward E. Brown Urges
Purchase of Defense Bonds
E d w ard E. Brow n, p resid en t of The
F irs t N ational B ank of Chicago, m ade
th e following statem en t reg ard in g De
fense Bonds:
“A nyone w ho buys th e U nited States
Savings Bonds benefits both his coun
try and him self. E veryone realizes
th a t our c o u n try ’s defense is v ital and
m u st be financed. T he p u rchase of
g overnm ent bonds by individuals and
corporations out of savings or su rplus
funds ra th e r th a n by banks reduces
th e d anger of inflation, w hich w ould
h u rt everyone.
“F o r in v estm en t w e know of n o th
ing else w hich is as a ttractiv e as th e
new U nited States Savings Bonds.
T hey are available in am ounts from
$25 up to $50,000', and th e th re e series
are designed to fit th e needs of differ
ANNOUNCEMENT
We wish to announce that effective
June 1, 1941
JO H N M. BEYER
has become associated with our firm
as Manager of our
Municipal Bond Department
QUAIL
^
CO.
D a v e n p o rt B a n k B ldg.
D A V E N P O R T . I O W A
FHA TITLE II LOANS
* m m
Iow a Banks W elco m ed
A s O riginating Brokers
■ ■ ■
Insured Loans P u rchased
At P revailin g Premium
■ ■ m
M o rtg a g e In v e s tm e n t C o rp o ra tio n
A n A pproved FHA M ortgagee
1021 Fleming Bldg., Des Moines, Iowa
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly 19bl
ent classes of savers and investors.
T he secu rity is absolute, th e yield is
liberal com pared w ith o th er bonds of
prim e security, and th e h o lders’ rig h t
of redem ption m eans th a t an investor
in th em cannot lose his principal. W e
are u rg in g th e ir sale and recom m end-
Edw ard E. Brown, rig h t, p re sid e n t,
a n d Guy W. Cooke, a s s is ta n t c ash ie r,
o f th e F i r s t N a tio n a l B a n k , C hicago,
p re s e n t a t th e first d isp la y of p o ste r
on D e fen se B onds.
ing th em to our custom ers and ad v er
tising them , feeling th a t by so doing
we are n ot only helping our co u n try
b u t benefiting th e b a n k ’s custom ers
and friends.”
Named Second
Vice President
T hom as P. Jerm an , w ho form erly
rep resen ted th e G u aran ty T ru st Com
pany of New Y ork in th e m iddle w est,
w ith h e ad q u arters in Chicago, has
been appointed a second vice p resid en t
of th a t com pany. Mr. Jerm an , w ho is
now located a t th e com pany’s m ain
office in New York, w ill continue to
be identified w ith th e b a n k ’s business
in th e m iddle w est district, w here he
has a w ide acquaintance in business
and financial circles.
70th Anniversary
T he 70th an n iv ersary of th e found
ing of George L a M onte & Son, Nutley, N. J., m a n u factu rers of safety
papers, w as celebrated recently.
A flag raising cerem ony w as held at
th e plant, w ith ap p ro p riate cerem onies
conducted by th e A m erican Legion
and V eterans of F o reig n W ars. George
V. La Monte, presid en t of th e organi
zation, addressed th e 300 assem bled
employees.
Sales rep resen tativ es of th e com
p an y ’s b ran ch offices in N ew York,
Cleveland, Chicago, St. Louis, K ansas
City, San F rancisco, and A tlanta, and
officers of George La M onte & Son,
Ltd., of Toronto, Can., attended.
T he business w as begun in 1871
w hen George L a M onte, g ran d fath er
of th e p resen t president, obtained his
first p aten ts on safety p aper for the
29
pro tectio n of checks, d rafts an d oth er
negotiable in stru m en ts.
George La M onte, th e founder of th e
com pany, w as its first p resid en t and
w as succeeded by his son, George M.
L a M onte, w ho served u n til his d eath
in 1927, w h en George V. La M onte be
cam e presid en t. George V. La M onte,
Jr., is now in th e em ploy of th e com
pany and his son, th e fifth George
La M onte, w as b o rn in M ay of th is
year. The p re se n t officers of th e com
p an y are: George V. La M onte, p resi
dent; M. L. H aggerty, vice president;
A lbert E. Howe, tre a su re r; Joseph Sylvander, secretary.
Bank Women in Chicago
Miss E m m a E. Claus, secretarytre a su re r, B an k ers T ru s t Com pany,
Gary, Indian a, and p resid en t of th e
A ssociation of B ank W om en, a n
nounces th a t th e n in e te e n th an n u al
convention of th e A ssociation w ill be
held in Chicago, Septem ber 26-29.
H e ad q u arters w ill be a t th e Congress
Hotel.
O ther officers of th e A ssociation of
B ank W om en are: Miss E lizab eth S.
G rover, Chase N ational B ank, New
York, vice president; Miss G ertrude
G reenw ald, B an k ers T ru s t Company,
Gary, Ind., recording secretary; Miss
G ertru d e M. Jacobs, M arshall & Ilsley
B ank, M ilw aukee, W isconsin, co rre
sponding secretary; Miss A nn E.
F ry e r, R hode Islan d H ospital T ru st
Com pany, Providence, R. I., tre a su re r.
Annual Fishing Party
C harles Rieger, m anager of the
bond departm ent, Jam ieson and Com
pany, M inneapolis, recently held his
an n u al fishing p a rty and outing at
L ake Mille Lac. As usual, th is affair
w as a g reat success—at least from
th e en te rta in m e n t standpoint.
T he outing began on F rid ay a fte r
noon, although th e b ulk of th e guests
did not arriv e u n til S aturday a fte r
noon. A cabin w as reserved aw ay
from th e hotel, and th is cabin echoed
loudly w ith singing and lau g h ter d u r
ing th e afternoon. P len ty of good
eats w ere in evidence.
A fter a highly en tertain in g a fte r
noon, along about 7 o’clock S aturday
evening th e guests w en t over to th e
hotel, w here fried chicken w as served
to 75 people. B etw een courses Mr.
R ieger v ery ably led th e boys in song.
In case anyone did n ot know the
w ords of th e song, he had only to
look upon th e sheet m usic fu rn ish ed
to each guest. All in all, it w as a v ery
h ilarious tim e, w ith Mr. R ieger lead
ing th e boys in S chnitzelbank as a
finale.
On Sunday m orning th e largest boat
on Lake Mille Lac pulled out w ith
Mr. R ieger and his party. H ow ever,
th e rep o rt is th a t th e fish w ere on
strike, b u t th a t d idn’t seem to curb
th e en th u siasm of th e m em bers of th e
party, and w hen th e outing finally
broke up late Sunday, it w as voted
a g reat success.
Some of those w ho atten d ed th is out
ing are show n in th e pictures here.
COMMERCIAL
INVESTMENT
TRUST
IN C O R P O R A T E D
Commercial I nvestment
T rust Incorporated, with
capital and surplus in excess
of $66,000,000, 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 purchasing self-liqui
dating accounts, and ex
tends to automobile dealers,
household appliance dealers,
and to manufacturers and
dealers in many lines of in
dustrial, commercial and
professional equipment, in
cluding the heavy goods in
dustries.
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 300 depositary banks
located in principal cities
throughout the country.
L a te st p u b lish ed fin a n c ia l
statement and list o f depositary
banks w ill be mailed upon request.
S ta n d in g , fro m le f t to r ig h t: M ilton H . B utton, F e d e ra l L a n d B a n k , S t. P a u l; Chuck
R ieger, Ja m ie s o n & C om pany, M in n e a p o lis; Dr. P. J. Schultz, M in n e a p o lis; Dr. R. V.
F ait, L ittle F a lls ; P aul Belau, C lerk of C ourt, B lue E a r th ; L ew is A. Lien, F e d e ra l L a n d
B a n k , S t. P a u l; W arren F ankhanel, F e d e ra l L a n d B a n k , St. P a u l; Charles R ieger, m a n
a g e r b o n d d e p a rtm e n t, J a m ie so n a n d C om pany, M in n e a p o lis; K. O. Sattre, c ash ie r, B lue
E a r t h S ta te B a n k , B lue E a r th , a n d r e tir in g p re s id e n t o f th e M in n e so ta B a n k e rs A sso
c ia tio n ; John Dom es, p re sid e n t, B lue E a r th S ta te B a n k , B lue E a r t h ; a n d Jak e K unz,
m a n a g e r, N o rth A m e ric a n Office, N o rth w e s te rn N a tio n a l B a n k a n d T ru s t C om pany,
M in n e ap o lis. S e a te d : A1 Barton, vice p re sid e n t, A m e ric a n N a tio n a l B a n k , L ittle F a lls ;
a n d W. H. Schneider, a s s is ta n t c ash ie r, B lue E a r th S ta te B a n k , B lue E a rth .
ADDRESS
Treasurer,
Commercial Investment
Trust Incorporated
1 ParkAve., New York, N. Y.
N orthw estern Banker
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Federal Reserve Bank of St. Louis
July 19hl
30
tive folder en titled “G etting Ready for
Increased Incom e T axes” w hich w as
d istrib u ted to all com m ercial custom
ers of th e bank.
New Plan Announced
L ast m o n th th e A m erican N ational
B ank and T ru st Com pany of Chicago
announced th e in au g u ratio n of an In
come Tax A nticipation P lan as a serv
ice to its custom ers and o th ers in its
com m unity in accum ulating funds to
m eet th e ir g reatly increased incom e
tax obligations n ex t year. The plan
has th e autom atic featu res of special
club accounts, b u t th e accounts w ill be
carried in th e savings d ep artm en t and
w ill be served in th e sam e w ay as the
b a n k ’s re g u la r savings accounts.
The plan is fully explained and its
advantages pointed out in a d escrip
The depositor w ill have his choice of
th re e v ariatio n s of the plan. F irst, if
he has a checking account w ith the
A m erican N ational Bank, the bank
w ill on th e first of each m onth au to
m atically tra n sfe r a specified am ount
from th e checking account to th e Tax
A nticipation Account. Second, the
b an k will, a t th e depositor’s request,
m ail him on th e first of each m onth a
rem in d er statem en t of th e m onthly
deposit th a t he w ishes to m ake to his
tax account. Third, th e custom er m ay
m ain tain th e special account ju st like
a reg u lar savings account, m aking de
posits in any am ount on any dates th a t
he w ishes. In all cases, the b a n k ’s
“Save by M ail” plan m ay be used if
m ore convenient for th e depositor.
A b u lletin explaining th e plan in
detail has been distrib u ted to the
Shaw, McDermott & Sparks
qfafcff
1
I
I N irn p P<~> P ATP- r> - -
-
t-J »
-- nir
Investment- Securities
Suitable for Investment of Banks,
Institutions and Trust Funds
E. N. V A N H O R N E
•
914 L iberty Bldg.
DES
Phone 3-6119
MO I N E S ,
IOWA
Federal Home Loan Bank of Des Moines
Des Moines, Iowa
STATEMENT OF CONDITION IUNE 30, 1941
R ESO U R C ES
A d van ces to M em b ers.............................................................................................................................. §14,234,475.04
U . S. G overn m en t O b lig a tio n s— d ire ct or fu lly g u a r a n te e d ..............................................
1,628,000.00
In te r e st R eceivab le— A ccru ed ...........................................................................................................
18,876.87
D eferred C harges and O th er A s s e t s ...............................................................................................
23,439.36
C ash ................................................................................................................................................................ 7,667,047.45
§23,571,838.72
L IA B IL IT IE S
C ap ital S tock S u b s c r ip tio n s ........................................................
^ D ebentu res O u tsta n d in g ............................................................
P r em iu m s on D e b e n tu r e s............................................................
D ep o sits ...............................................................................................
In te r e s t P a y a b le— A ccrued ..................... ..............................
D ivid en d s P a y a b le J u ly 7th, 19 4 1 ..........................................
S u rp lu s:
R eserves ..........................................................................................
U nd ivid ed P r o fits .....................................................................
...........................$10,257,800.00
.......................... 11,500,000.00
..........................
16,554.23
..........................
901,156.39
..........................
33,454.78
..........................
63,765.36
$624,531.89
174,576.07
799,107.96
$23,571,838.72
^ P a rticip a tio n in S75,500,000.00 co n so lid a ted F ed eral H om e L oan B a n k d eb en tu res o u tsta n d in g ,
w h ich are th e jo in t and sev era l o b lig a tio n s o f th e tw e lv e F ed era l H om e L oan B a n k s.
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly 19bl
b a n k ’s em ployees and th e ir coopera
tion has been enlisted in pointing out
th e advantages of th e plan to th e peo
ple w ith w hom th ey come in contact.
A nnouncem ent folders have also been
m ailed to thousands of non-custom ers
in th e h ig h er incom e b rackets and dis
trib u te d to offices in th e vicinity of th e
bank. N ew spaper adv ertisem en ts are
also being used in announcing th e
plan to the public.
E dw in N. Van H orne, executive vice
president, w ho sponsored th e Incom e
T ax A nticipation P lan has sen t com
plete description and m aterials to cor
respondents of th e A m erican N ational
B ank and has given them perm ission
to use th e plan in th e ir ow n com
m unities.
Heads Chicago Auditors
A t th e ann u al m eeting of th e Chi
cago A uditors Conference, B. A. Brannen, au d ito r of th e H arris T ru st &
Savings Bank, w as elected president;
R. O stengaard, com ptroller-auditor of
The Live Stock N ational Bank, vice
president; W. E. H arrison, a ssistan t
au d ito r of th e City N ational B ank and
T ru st Company, treasu rer: and P.
Cordes, au d ito r of th e Lake Shore
T ru st and Savings Bank, secretary.
The Chicago Conference is a m em
b er of th e N ational A ssociation of
B ank A uditors and Com ptrollers, w ho
31
have forty-eight conferences in cities
th ro u g h o u t th e U nited States.
John M. Beyer Joins
Quail and Company
Jo h n M. Beyer, w ell-know n in in
vestm en t ban k in g circles in th e m iddle
w est, has recen tly becom e associated
w ith Quail and Com pany of D avenport
as m an ag er of th e ir m unicipal d e p a rt
m ent.
Mr. B eyer w as born in D avenport
and graduated from St. A m brose Col
lege there.
The officers of Quail and Com pany
are:
Jo h n J. Quail, president; J. H. Ruhl,
vice president; C. D. Salter, vice p resi
dent; Jo h n T. Gerwe, vice president,
and C. H. M urray, secretary.
City National, Chicago
The board of directors of th e City
N ational B ank and T ru st Com pany of
Chicago, a t a special m eeting held Ju n e
30, declared a dividend of $2.00 per
share, of w hich $1.00 w ill be paid on
A ugust 1, 1941, to stockholders of rec-
JAMIESON
THE
&
P u b l ic
N a t io n a l
Bank
COMPANY
Stocks
Bonds
Grain
q
£ )£
Cotton
Butter
Eggs
Com m odity Brokers
•
Members
N ew York Stock Exchange
S
and Other Principal Exchanges
•
ST. PAUL — MINNEAPOLIS
•
JO H N M. B E Y E R
G overnm ent — M unicipal
Corporation Bonds
•
CHARLES C. RIEGER
Mr. B eyer has had 10 years of expe
rience in the in v estm en t b an k in g field,
th e p ast four of w hich he w as vice
presid en t of Shaw, M cD erm ott and
Sparks, in charge of th e ir D avenport
office, tra v e lin g eastern Iow a and w est
ern Illinois.
ord as of Ju ly 21, 1941, and $1.00 on
N ovem ber 1, 1941, to stockholders of
record as of October 21, 1941. In as
m uch as a dividend of $1.00 p er share
w as paid in F e b ru a ry and May, th is
action of th e board w ill re su lt in re
tu rn s to stockholders of $4.00 per
share for this year.
The board also approved the tra n s
fer of $200,000 from undivided profits
to su rp lu s account. This constitutes
the fo u rth such increase to be effected
w ith in the past five years, $1,000,000
having been tra n sfe rre d in 1936,
$1,000,000 in 1939, and $200,000 in 1940.
The b a n k ’s capital is now $4,000,000
and su rplus $3,400,000.
Manager
Bond Department
Minneapolis — Atlantic 8235
_________________________________ _
AND
TRUST COMPANY
OF NEW YORK
¡§crvic*e— M aintaining an
intimate, personalized corre
spondent bank service.
E x p erie n ce —Officials with
years of service in this field,
assuring a knowledge of re
quirements and valuable as
sistance.
BONDS
Public U tility
P o lic y — To cooperate with
out-of-town banks rather than
compete for business which is
rightfully theirs.
In dustrial
R a ilroad
M unicipal
A.C . A L L Y N andc o m p a n y
ESTABLISHED 1908
Incorporated
lOO W e s t M on roe S tr e e t, C h ic a g o
N ew Y o rk
R e p r e s e n ta tiv e s s
M ilw a u k e e
W a te r lo o
Om aha
D e s M oin es
B o sto n
C ed a r R a p id s
MEMBER
NEW YORK CLEARING HOUSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION
N orthw estern Banker
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Federal Reserve Bank of St. Louis
July 1941
32
Building Up a Rainy-Day RßSßtVß
H E A m erican people are saving a t
th e ra te of $100,000,000 a week!
This is n o t som ebody’s w ild guess,
b u t an official an n o u n cem en t by th e
T rea su ry D epartm ent, th a t A m ericans
are giving U ncle Sam $100,000,000 a
w eek to save for th em —and receiving
in re tu rn Defense Savings Bonds and
Stam ps.
B ankers, businessm en, bakers, farm
ers, factory w orkers, shop girls, h ouse
w iv e s — v irtu a lly all A m erican m en,
T
w om en and children from all w alks of
life—are cooperating in th e g o vern
m ent program to build up a rainy-day
reserve. In m any states, em ployers
are establishing system atic savings
plans in cooperation w ith th eir em
ployes. L abor and in d u stry both have
endorsed th e savings program of th e
governm ent. N evertheless, th ere are
still m any w ho ask: W hy? W h at is
th e reason for this n ational th rift u n
dertaking?
1
the
FIRST
W ISCONSIN
is
First in Wisconsin
A m p le resources. C om plete m od
ern fa cilities. U n p aralleled state
w ide contacts. A large and com p eten t staff
headed hy exp erien ced officers. An 88-year
record o f growth and progress. . . . W ith
th ese im p ortan t factors p rovidin g a sound
fo u n d a tio n for efficient service, the First
W isconsin
N ation al
of
M ilw au kee
h olds
ou tstan din g rank as “ W iscon sin ’s hank for
The First Wiscon
sin serves more.than
8 5 p er cent o f a ll
the banks in Wis
consin.. .plus many
l e a d i n g banks
in key cities o f
neighboring states.
•
Resources Over
$285,000,000
• \
Established 1853
hanks’*.
T h e F irst W isconsin is the
largest bank in W isconsin,
Iowa, M innesota, N o rth and
So u th D akota . . . 31st in
size am ong all banks in the
U nited States.
FIR ST W ISC O N SIN
N A T IO N A L B A N K
OF MILWAUKEE
M E M B E R F E D E R A L D E P O S IT
N orthw estern B anker
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Federal Reserve Bank of St. Louis
Ju ly 19^1
IN S U R A N C E
C O R PO R A T IO N
BANKS & BANKERS
DIVISION
George T. Campbell
Vice- President
Richard J. Lawless
Ass’t Vice-President
Donald A. Harper
Ass’t Vice-President
The reason are m anifold. S trange as
it seems, w ith w ar all aro u n d us,
A m erica is p rep arin g for peace. In
th is period of unlim ited em ergency,
v ast req u irem en ts are being m ade of
in d u stry by th e F ed eral governm ent.
W heels are tu rn in g a t top speed to p ro
duce th e w eapons of defense—w eapons
th a t w ill assure and p rotect th e free
dom and safety of th e nation. As a
result, th e n ational incom e is jum ping
sharply. W ages and salaries are in
creasing. So, too, is em ploym ent.
M oney is m ore plentiful.
If th e co u n try spends a lot of m oney
now, th ere m ay be a let-down a fte r
w ards. The defense savings program
of th e T re a su ry D epartm ent involves
the sale of F ed eral securities to as
m any people as possible in an effort to
build A m erica’s all-out w ar production.
The cash involved in th e purchase of
Defense Savings Bonds is p u t to w ork
at once to pro tect th e freedom of th e
country. At th e sam e tim e, th e bond
protects th e individual against finan
cial consequences of a post-w ar read
ju stm en t. Thus, th e program achieves
a two-fold purpose.
T here are th ree types of D efense
Savings Bonds, designed to m eet th e
needs of all people. T he Series E, or
“people’s bond,” how ever, is th e one of
p artic u la r in te re st to th e average
A m erican m an, w om an and child. This
in v estm en t p reserves the ch aracter of
th e Savings Bonds w hich have proved
so popular since th ey w ere first p u t on
sale M arch 1, 1935.
These Series E Bonds m ay be bought
for $18.75, $37.50, $75, $375 and $750.
T hey grow in value in ten y ears to
$25, $50, $100, $500 and $1,000, respec
tively. The an n u al in v estm en t yield
is 2.9 p er cent a year, com pounded
sem i-annually, w hen a bond is held to
m a tu rity in accordance w ith a table of
redem ption values p rin ted on th e face
of the bond.
Series F, also an appreciation bond,
is issued a t $74, $370, $740, $3,700 and
$7,400. These bonds m atu re in 12
years to $100, $500, $1,000, $5,000 and
$10,000. Series G is designed to m eet
th e dem and for a c u rre n t incom e bond.
These are issued at p ar and m ay be
purchased in denom inations of $100,
$500, $1,000, $5,000 or $10,000. Series G
Bonds bear in te re st of 2.5 p er cent paid
sem i-annually by T reasu ry check.
In addition to individuals, th ese tw o
series of bonds m ay also be reg istered
in the nam e of any corporation, asso
ciation, p a rtn e rsh ip or tru stee.
If an individual should be pressed
«
33
for cash, th e T re a su ry w ill redeem th e
bonds before m a tu rity . T he full faith
and cred it of th e U nited S tates Gov
ern m e n t are beh in d all of th ese bonds.
D efense Savings Stam ps are for th e
convenience of p u rch asers w ho cannot
afford to pay $18.75 a t an y one tim e.
T hese stam ps, on sale a t post offices
th ro u g h o u t th e co u n try an d a t m an y
o th er outlets, a re issued w ith h an d y
devices for safe keeping. On th e p u r
chase of a 10-cent stam p, a card is fu r
nished for m o u n tin g 25 of th ese stam ps
w hich m ay th e n be exchanged for
$2.50 w o rth of th e larg er sizes. W ith
th e p u rch ase of a 25-cent, 50-cent, $1
or $5 stam p, an a ttra c tiv e pocket a l
bum is given free, in w hich to m o u n t
th e stam ps, w hich m ay be exchanged
late r for a bond.
S ecretary M o r g e n t h a u h as a n
nounced th a t th e T re a su ry ’s Defense
Savings P ro g ram is to be a con tin u in g
effort.
“T h ere a re no quotas for th e co u n try
or for an y com m unity in it,” is th e
w ay th e T re a su ry S ecretary p h rases it.
“T h ere is no tim e lim it. A m ajo r ob
ject of th is pro g ram is to give th e
A m erican people th e h a b it of sy ste
m atic saving for th e ir c o u n try ’s sake
and for th e ir ow n.”
of facilities, character of man
Assistant Cashier
agement— these are factors that
T he P h ilad elp h ia N ational B an k has
announced w ith re g re t th e resig n atio n
of D aniel H. B lizzard as a ssista n t cash
ier. Mr. B lizzard has resigned to en
gage in p riv ate business.
A t a m eeting of th e b oard of d irec
to rs W illiam E. V ollm er w as ap p o in t
ed an a ssista n t cashier. Mr. V ollm er
hereto fo re has been head of th e Credit
D ep artm en t of th e dow ntow n office
of th e bank.
A
ssets
and liabilities have
value as advertising copy, but
the public is inclined to appraise
banks by what they do rather
than by what columns of figures
show them to be.
The type of service, adequacy
produce the results reflected in
a strong statement of condition.
. . . THE . . .
Dividend
T he board of d irecto rs of M anufac
tu re rs T ru s t C om pany declared th e
reg u la r q u a rte rly dividend of 50 cents
p er sh are on th e com m on stock, p ay
able on Ju ly 1, 1941, to stockholders
of record on Ju n e 14, 1941.
T he b oard also declared th e re g u la r
q u a rte rly dividend of 50 cents p er
share on th e p re fe rred stock, payable
Ju ly 15, 1941, to stockholders of rec
ord on Ju n e 30, 1941.
Geshundheit!
“N am e?” asked th e im m ig ratio n offi
cial.
“Sneeze,” replied th e Chinese p ro u d
ly. T he official looked h a rd a t him .
“Is th a t y o u r Chinese n am e?” “No.
M elican nam e,” said th e O riental
blandly. “T hen le t’s have y o u r n ativ e
nam e.” “A h Choo.”
P H IL A D E L P H IA
NATIONAL
BANK
ORGANIZED 1803
PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$ 4 5 ,0 0 0 ,0 0 0
M em b er o f F ederal D eposit Insurance C orporation
Northwestern Banker
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Federal Reserve Bank of St. Louis
July 19^1
34
^ ifte
UMITED STATES
V a ti o n a !
M e m b e r F e d e r a l D e p o s it In s u r a n c e C o rp o ra tio n
Northwestern Banker
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Federal Reserve Bank of St. Louis
July 19^1
BAIVK
o íO m aha
35
NEBRASKA
NEWS
C A R L D . GANZ
P r e sid e n t
A lvo
Bank Loans
Thirty-five p er cent of th e banks
in N ebraska m ade m ore th a n 173,000
loans to talin g $111,000,000 to business
firm s and individuals th ro u g h o u t the
state d u rin g th e second half of 1940,
according to th e sem i-annual survey
of b ank lending activ ity m ade by th e
research council of th e A m erican
B ankers A ssociation. The A. B. A. loan
surv ey w as p articip ated by 148 N e
brask a banks, or 35.4 p er cent of the
417 b anks in th e state.
T hese 148 b anks rep o rted th a t th ey
m ade betw een Ju ly 1 and D ecem ber
31, 1940, 106,092 new loans to talin g
$58,164,285; 67,182 renew als of loans
totalin g $52,407,023; 656 new m ortgage
loans to talin g $1,257,841. T his is a
total of 173,930 loans in th e sum of
$111,829,149.
WM. B. H U G H E S
S ecreta ry
Om aha
On Ju ly 2, 1866, w hen th ey opened
for business th ey had capital stock of
$50,000 and deposits of $12,312.
In th e folder w hich the bank issued
in connection w ith its Ju n e 20, 1941,
statem ent, th ey also gave a list of all
of th e directors of the Omaha N ational
B ank, since its inception, as w ell as
the ledger pages show ing th e first
d ay ’s business in th e bank.
In a statem en t issued by th e em
ployes, directors and officers, th ey
said:
“Seventy-five y ears of active busi
ness life in a given com m unity consti
tu te a sum total of usefulness w o rth y
of passing notice.
Omaha National's
75th Anniversary
On Ju ly 2nd th e Om aha N ational
B ank celebrated its 75th an n iv ersary ,
as it com m enced business on th a t date
in 1866.
In issuing th e ir b ank statem en t as
of Ju n e 30, 1941, th e b ank h ad deposits
of $53,067,000, w ith com m on stock of
$2,000,000, su rp lu s of $2,000,000, and
undivided profits of $262,000. Loans
and discounts am ounted to $18,655,000.
District Meeting
B ankers from Douglas, Sarpy, B urt
and W ashington counties attended a
d istrict m eeting at V alley last m onth.
Special guests w ere W illiam M itten,
E. J. Robins, C. W. M otter and Nick
Neff of F rem ont and m em bers of the
Omaha C ham ber of Commerce. State
E n g in eer W ard n er G. Scott w as p rin
cipal speaker.
Bank Receiver Files Brief
FBI Files Charges
Citizens of M errim an w ere su rp rised
w hen th e y learned recen tly th a t fed
eral charges of violating ban k in g law s
had been filed ag ain st F re b e rt O. W angerin, a ssista n t cashier of th e A nchor
B ank of M errim an by th e F B I a t
Omaha.
T he inform ation alleges th a t W ang erin had m ade false en tries d u rin g
th e p ast five or six y ears to cover up
shortages of about $8,900. He had been
an officer of th e b an k for m ore th a n
10 years.
T he in fo rm atio n w as filed by U. S.
A tto rn ey Joseph T. Votava. W hen
a rre ste d W an g erin w ill be arrain g ed
before a U. S. com m issioner probably
at Chadron.
ileged to build. W h atever of achieve
m ent m ay be read into th e record m ust
be credited to our custom ers and
friends, w hose loyalty has been con
sta n t th ro u g h the years. We are deep
ly g ratefu l for all these tangible evi
dences of good will.
“We accept th e responsibilities im
posed upon us by the heritage of the
years. W e pledge our best endeavor
in cooperative service to our business
com m unity and to the full su p p o rt of
our co u n try —its ideals and principles.”
P resen t officers of th e bank are, W.
Dale Clark, president; W illard B. Mil
lard, Jr., R ay R. Ridge, J. R obert
Cain, Otis T. Alvison, Jo h n A. Changstrom , Daniel J. Monen, vice p resi
dents; Clyde O. D arner, cashier; David
F. Davis, tru s t officer; E d w ard Neale,
Jam es H. Moore, Lew is C. McVea,
S tephen J. W irtz, assistan t cashiers,
and Jam es N. G. M acalister, auditor.
W.
DALE
CLARK
“The H istory of Omaha and th e role
played by th e Omaha N ational B ank
are inseparably bound to g eth er by
bonds of m u tu al confidence and serv
ice—living together. The sto ry need
not be re-told here. It is sufficient to
express our pleasure and pride, not in
th e num ber, b u t in th e fullness of the
years.
“Deep and sincere respect is hereby
accorded those w ho laid th e founda
tions upon w hich we have been p riv
E. H. L u ik art, receiver of the Se
cu rity B ank of M eadow Grove, filed a
b rief w ith th e suprem e court recently
asking th a t th e finding of th e district
court in favor of Ina B. Bosse, W. H.
Bosse and F. J. U ehling be o v ertu rn ed
and judgm ent en tered in his favor.
Mr. Bosse ow ned a controlling in terest
in the b ank and w as its president.
A fter its failure th e receiver secured
ju d g m en t for $2,005 on his stockhold
e rs’ liability. The p resen t suit is to
subject 240 acres of land to paym ent
of th e judgm ent. Mr. L u ik a rt says ju st
before th e bank closed Mr. Bosse tra n s
ferred th e land to U ehling, a brotherin-law, and th e la tte r afterw ard con
veyed it to Mrs. Bosse. T he brief dis
sects th e evidence to prove th e receiv
e r’s contention th a t th e testim ony of
defendants failed to prove good faith
in the transactions, as th e tria l court
found.
Mrs. Liggett Dies
C harlotte Zum w inkel Liggett, wife
of George H. L iggett, p resid en t of th e
F irs t N ational B ank of U tica and wellknow n in N ebraska banking circles,
died last m onth at th e fam ily hom e in
U tica follow ing a long illness w ith
anem ia.
Northwestern Banker
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Federal Reserve Bank of St. Louis
July 1941
36
A ccepts Position
Miss Jean n e P a rk e r of K enesaw has
accepted a position as bookkeeper for
th e A dam s C ounty B ank of K enesaw .
Ganz, Alvo, state president; W. H. M it
ten, of Frem ont; T. H. W ake, Jr.,
Seward; B ernard Miles, F rem ont; J. H.
Kohl, W ahoo, and Clarence H inds and
E. A. Becker, Lincoln.
H is previous appearances before the
b a n k e rs’ d istrict groups w ere at L ouis
ville, K entucky; Sioux City, Iowa; and
Lincoln.
"Streamlined" Bank
Committee Meeting
A com m ittee of th e N ebraska B an k
ers A ssociation m et last m o n th a t L in
coln, to stu d y th e advisability of
changing th e form of co n tract cover
ing th e re n ta l of a safety deposit box,
to conform to th e state law. No action
was taken.
R. H. K roeger of Omaha, chairm an
of th e com m ittee, w as in charge of th e
m eeting. O thers p re se n t w ere Carl D.
Convention Speaker
Dr. F red C. W iegm an, p resident of
M idland College, F rem ont, m ade his
fo u rth appearance before d istrict con
v entions of the A m erican B an k ers’
A ssociation last m onth a t L exington,
K entucky.
The M idland executive spoke to dele
gates of the S outhern district. His
topic was, “B anking on th e B anker.”
Charter No. 2 0 9
F ir s t N a tio n a l B a n k
o fO m aha
The State B ank of Scotia now has a
“stream lin ed ” appearance, th e larger
portion of th e grille having been re
moved, leaving only about a foot of
stru c tu re above th e counter. T he new
arran g em en t is especially neat and
attractive.
Hears Bank C ase
H earing on the suit of school dis
tric t No. 8 of B ennet against th e re
ceiver of failed Citizens B ank of Bennet for $19,969.82 w as heard by Dis
tric t Judge Chappel last m onth. The
school board said school funds on de
posit in th e b ank w hen it w as taken
over by th e state last October, w ere
show n to be $92.72, w hereas it should
have been $19,969.
Marriage Announced
Mr. and Mrs. H erb ert F ra d y of Neligh announce th e m arriage of th e ir
daughter, Ju n e F rady, to A rth u r
D ressier of W ayne.
The couple w ill live at W ayne,
w here Mr. D ressier is em ployed by the
State N ational Bank.
Hedelund Promoted
The
Oldest National Bank
From Omaha West
Nationalized 1 863
A t a recen t m eeting of th e board of
directors of th e W ashington C ounty
Bank, Blair, George T. H edelund w as
m ade vice presid en t of the in stitution.
Louis M urdoch succeeds Mr. H ede
lund as cashier. Mr. M urdoch has
been serving as a ssistan t cashier.
C harles D. Saunders, vice president
of th e F irst N ational B ank of Omaha,
rem ains as p resid en t of th e local bank.
M em bers of th e board of directors
of the B lair bank are Mr. Saunders,
W. B. R oberts, presid en t of th e N a
tional Com pany of Omaha; Jo h n F.
Davis, vice presid en t of th e F irs t N a
tional Bank, Omaha; Mrs. Bess B.
Davis, E a rl Jenkins, H edelund and
Murdoch.
O F F IC E R S
T.
F.
J.
C.
J.
J.
L. D a v i s ................
W . T h o m a s ...........
F. M c D e r m o t t . .
D. Saunders . . . .
T. S t e w a r t , I I I .V ic e P r e s , and C ashier
F . D a v i s ................
A.
0.
C.
E.
E.
H.
H.
H.
H.
N.
F.
A.
Ch i s h o l m ...........
E l l i o t t ................ . . .A s s is ta n t C ashier
V e b e r ...................
S o l o m o n ............. . . . A ssista n t C ashier
J e p s e n ...................
A r n s b e r g e r . . . . . .A ss is ta n t C ashier
W . E . S p e a r ..................................... T ru st Officer
E . G. S o l o m o n ...........A ssista n t T ru st Officer
Member
Federal Reserve System
Northwestern Banker
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Federal Reserve Bank of St. Louis
July 19M
Member
Federal Deposit Insurance Corporation
Banker Celebrates Birthday
W. H. McDonald, ch airm an of the
board of th e McDonald S tate B ank of
N orth Blatte, celebrated his 80th b irth
day last m onth.
Mr. M cDonald is a v eteran banker,
and in spite of his age, goes to the
b ank each day.
Mr. McDonald, by th e way, had the
distinction of being th e first w hite
child born in Lincoln County.
37
Five of eight principal Omaha busi
ness indicators for May show ed an in
crease over the sam e m onth last year.
B ank clearings increased 18.9 per cent,
bank debits 18.1 per cent.
F o r the 12 m onths ending May 31st,
clearings gained 6.4 p er cent, debits
6.1 per cent.
Mrs. T hom as O’Brien, 86, m other of
Mrs. Thom as F. M urphy, wife of the
U nited States N ational B ank of Omaha
vice president, died recently at the
hom e of an o th er daughter, Mrs. E d
w ard W atters in Carroll, Iowa. T hree
sons and tw o o th er dau g h ters also
survive.
W
H E N Om aha C ham ber of Com
m erce good w ill trip p e rs left re
cently on a ja u n t to w estern N ebraska
and th e Black Hills, John A. Changstrom , trip chairm an, sta rte d on his
tw enty-fifth an n u al tour.
Mr. C'hangstrom is a vice p resid en t
of th e O m aha N ational Bank.
Dr. W illiam A. Irw in of N ew York,
national education d irecto r of th e
A m erican In stitu te of B anking, spoke
at a forum d in n er of th e A. I. B.’s
Om aha ch ap ter recen tly a t th e Regis
Hotel. C ertificates w ere p resen ted to
stu d en ts w ho had com pleted th e in sti
tu te ’s course of stu d y in g d u rin g th e
year.
W. D ale Clark, p resid en t of th e
Om aha N ational Bank, w as elected
chairm an of th e N ebraska chapter,
U nited Service O rganizations for N a
tional Defense, a t an organization
m eeting in L incoln recently. K. B.
Cary, L incoln, w as nam ed vice ch a ir
man.
The m ovem ent is designed to p ro
vide social, recreatio n al and religious
activities in com m unities ad jacen t to
arm y cam ps and defense plants.
W illiam A. S aw tell, p resid en t of th e
Stock Y ards N ational B ank of South
Omaha, w as elected to a three-year
term as a m em ber of th e board of di
recto rs of th e Om aha C ham ber of Com
m erce a t th e a n n u al election in June.
T he new fiscal y e a r begins Ju ly 1.
Sam uel W. Reynolds, elected vice
presid en t and ch airm an of th e execu
tive com m ittee, is in line for th e p resi
dency of th e cham ber in 1942. E lected
p resid en t for th e com ing y e a r is A. H.
Clarke.
D aniel J. M onen, tr u s t officer of th e
O m aha N ational B ank, w as elected
presid en t of th e Om aha Council of So
cial Agencies a t th e 20th an n u al m eet
ing.
He succeeds Rabbi Wice, w ho served
tw o years.
P u rchases of N ebraska farm s and
ranches from th e F ed eral L and B ank
of Omaha reached an all-time high d u r
ing May, according to Charles McCumsey, president of the bank.
D uring th e m onth, 97 tracts owned
by the b ank w ere p u t back into th e
h ands of p riv ate ow ners, th e largest
m o n thly sales figure for th e state in
th e land b a n k ’s 24-year history, and
over th ree tim es th e 31 tra c ts p u r
chased in May of last year.
T otal consideration w as rep o rted as
$490,699.
F arm te n an ts becom ing ow ners ac
counted for 32 p er cent of th e N ebraska
land purchases, w ith ow ner-operator
p u rchases accounting for 45 p er cent,
and 23 p er cent rep resen tin g in vest
m en t purchases.
D irectors of th e N ebraska Savings
and Loan A ssociation have elected
R ussell .T. H op ley as a m em ber of the
board. Mr. H opley is vice presid en t of
th e N orth w estern Bell T elephone Com
p any at Omaha.
The F rem ont, N ebraska, city council
recen tly voted to aw ard a $40,000 bond
refu n ding deal to Fred T eigeler of F re
m ont and R obert E. S ch w eser Com
pany of Omaha. The bonds, o u tstan d
ing against th e Bell and Broad S treet
viaducts at F rem ont, had been d raw
ing 2 per cent in terest. T hey w ere re
funded at 114 per cent.
YOUR STATE BANKERS ASSO CIATIO N
O FFIC IA L SA FE, V A U L T AN D
TIM ELOCK EXPERTS
F. E. DAVENPORT & CO.
OM AHA
/¿ U
d u d a t tU
about the PRO FITABLE
"PAYC" (Pay-as-You-Cheek)
Checking Plan!
are gratified with evohaseof t h e -PAYC' n o .mum-balance system.
r experience would seem
istakable evidence of
public need for a pay- y ou -g o c h e c k i n g acm t service, especially
3n operated along such a
gh level of efficiency
^the 'PAYC’ system af-
*N a m e of bank on request
Recent " P A Y C " Installations
F i r s t N a tio n a l B a n k
F a l ls C ity , N eb .
R ic h a r d s o n C o u n ty B a n k
F a l ls C ity , N eb .
Ask a "U.5." representative for com
plete information about the " P A Y C "
plan, or write to —
UNITED STATES CHECK BOOK CO.
O M AHA, NEBRASKA
Northwestern Banker
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Federal Reserve Bank of St. Louis
if
July Í.94Í
38
•
L eslie E. M artin of Om aha w as re
elected se c retary -treasu rer of th e N e
brask a League of B uilding an d Loan
Associations a t th e a n n u al convention
in Columbus, N ebraska, recently. O ther
new officers: H. D. W iese, N o rth P latte,
president; E. C. B oehm er, Lincoln; C,
A. D urland, N orfolk, and P h il H ockenberger, Colum bus, vice presidents.
A rnold F. W allin of th e F irs t N a
tional B ank of Om aha w as elected vice
p resid en t of th e A ssociated R etail
C redit G ran to rs of Om aha a t th e a n
nual m eeting.
NEBRASKA
NEWS
H arry O. W renn, credit m anager of
the N ebraska Clothing Company, w as
nam ed president. W ren n is also vice
p resident of th e Sixth D istrict, N a
tional R etail C redit Association.
Twenty-five
O m ahans, headed by
A ndrew K opperud of th e F ed eral L and
B ank of Om aha and vice ch airm an of
the Cham ber of Commerce ag ricu ltu ral
com m ittee, w en t to Red Oak, Iowa, re
cently to a tten d a soil conservation
m eeting w hich w as addressed by H. H.
B en n ett of W ashington, chief of th e
conservation division.
L I VE STOCK N A T I O N A L B A N K - O M A H A
S ta te m e n t of C o n d itio n June 30, 1941
RESOURCES
L o a n s and D is c o u n t s ........................................................................
B o n d s and O th er S e c u r i t ie s ........................................................
S to ck in F e d e r a l R e se r v e B a n k .................................................
B a n k in g H o u s e and F i x t u r e s .....................................................
O th er R e a l E s t a t e ............................................................................
U . S. G ov. S e c u r it ie s ........................................................................
(S e e I te m iz e d L is t B e lo w )
C ash, S ig h t E x c h a n g e and D u e from F e d . R es. B k .. .
.............................. $ 9,053,497.29
..............................
2,636.98
..............................
30,000.00
....................
1.00
..............................
$3,238,354.58
N one
4,591,685.04
7,830,039.62
$16,916,174.89
LIABILITIES
C a p ita l S to ck (C o m m o n ) ................
S u rp lu s (E a r n e d ) ..............................
U n d iv id e d P rofits ..............................
R e s e r v e for T a x e s , I n te r e s t, E tc.
U n earn ed D is c o u n t ............................
D iv id e n d P a y a b le Ju ne 30, 1941.
D e p o s its :
B a n k .................................................
O th er D e p o s its ..........................
$
$7,868,092.62
. 7,580,520.68
500,000.00
500,000.00
264,386.17
186,147.10
9,528.32
7,500.00
15,448,613.30
$16,916,174.89
U. S. GOVERNMENT SECURITIES
D e s c r ip tio n R a te
M a tu r ity
B onds 4
12-15-54-44
B o n d s 3Y a ................................... 3-15-56-46
M i s e ..............................
V a r io u s
P a r V a lu e
$1,200,000.00
1,725,000.00
6,600.00
B o o k V a lu e M a r k e t V a lu e
$1,311,468.99 $1,341,000.00
1,919,919.08
1,952,484.37
6,966.51
6,982.45
$2,931,600.00
$3,238,354.58
$3,300,466.82
P re m iu m on U. S. G o v ern m en t S e c u r itie s a m o rtize d to O p tio n a l D ate
Capital. Surplus and
Undivided Profits Loans and Discounts
Deposits
June 30, 1933 ____$ 612,234.18_____ $1,759,199.39_____ $ 4,635,097.58
June 30. 1937 ____
774,499.25_____ 2,891,384.12_____ 12,261,707.28
June 30. 1941 ____ 1.264,386.17_____ 9.053,497.29_____ 15.448,613.30
I n our N a t io n ’s h o u r o f p re p a re d n e s s fo r N a tio n a l D e fen se, th e h ig h e s t
deg ree o f c o -o rd in a tio n m u st be h a d b e tw e e n G o v e rn m en t, In d u s try , L a b o r
a n d F in a n c e .
W e offer our fa c ilitie s fo r th is d e fen se p ro g ram , in c lu d in g th e v ita l L iv e sto c k ,
A g ric u ltu ra l a n d C om m ercial e n te rp ris e s fo rm in g th e m a in lin e of our d e fen se
A L V IN E . JO H N S O N , P re 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 d e ra l 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
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 1941
R ay R. R idge, vice presid en t of th e
Om aha N ational Bank, w as elected vice
p resid en t of th e Om aha R otary Club a t
the an n u al m eeting. R. E. Langdon,
vice p resid en t of th e G uarantee M utual
Life In su ran ce Company, is th e new
p resid en t of th e club.
B ank clearings for th e w eek ending
May 17th in Omaha w ere $37,408,208,
com pared w ith $35,061,068 th e previous
w eek and $32,820,427 th e sam e w eek
last year. B ank debits w ere $37,239,051, ag ain st $37,307,454 the previous
week, $30,755,487 th e sam e w eek in
1940.
A delegation from th e Om aha chap
ter, A m erican In stitu te of B anking,
boarded a special tra in from Boston to
go to th e national A. I. B. convention
in Los Angeles. R epresenting Omaha
banks at th e five-day n ational m eet
w ere D orothy F itzgerald, M ary Mc
Cann, E v ely n R okusek, Mrs. Lon
Barta, R ose K ovarik, Lou Barta, pres
ident of th e Om aha chapter; L illian
JVedbalek, G o r d o n Joh ann sen and
Ralph M iller.
U n iv ersity of Om aha regents recen t
ly au thorized p u rchase of U nited
States 2rA p er cent defense bonds as
an in v estm en t for th e $50,000 bequest
m ade to th e u n iv ersity last y e a r un d er
the w ill of th e late Mrs. Sarah Joslyn,
“N eb rask a’s rich est w om an.”
R egents agreed th a t th e principal of
the bequest shall rem ain intact, b ut
had m ade no decision as to use of in
terest income.
A hom e reg istratio n office, seeking
to a v e rt any housing shortage as a re
su lt of Om aha defense activities, in
cluding construction of th e bom ber
p lan t a t F o rt Crook, w as opened re
cently a t th e O m aha city hall by th e
housing subcom m ittee of th e regional
defense com m ittee. A lvin E. Johnson,
presid en t of th e Live Stock N ational
B ank of South Omaha, is ch airm an of
the subcom m ittee.
P u rpose of th e office is to list all
available hom es and room s in th e city.
Speaking before th e Om aha Real Esstate Board, Mr. Joh n so n asked m em
bers to provide copies of th e ir vacancy
lists for th e re g istratio n office.
W ho Knows?
B ank Clerk: “W hy does a person al
w ays low er his voice w hen asking for
a loan?”
Cashier: “I suppose it’s for th e sam e
reason he raises his voice w hen he
doesn’t get it.”
39
M artin said rep aym ents w ere 66.3
per cent of to tal deposits of th e m erged
bank. T h irteen banks still rem ain in
receivership in th e state.
Cooling Systems tor Banks
In Locals
Superior people w ho are to be so
fo rtu n ate as to have business a t the
local banks th is sum m er, m ay be as
sured th a t th e y w ill be able to tra n s
act th e ir business in com fort, no m at
te r how h ot th e w eather. Both Supe
rio r banks, th e Security N ational and
th e F arm ers S tate have p u t dow n
w ells to supply th e w a te r for th e
u n its th a t send out th e cool breezes.
The city w a te r is not usually cold
enough to w ork w ell in th e cooling
system s.
T
H E O m aha c h ap ter of b an k au d i
to rs and com ptrollers, m eeting in
Council Bluffs, Iowa, elected A. C.
Glandt of th e F irs t N ational B ank in
L incoln as president.
A ddressing th e forty-seven b an k a u
ditors and ju n io r officers from Omaha,
South Omaha, L incoln and Council
Bluffs w as R obert Turner, p resid en t of
th e City N ational B ank, w ho spoke on
federal housing ad m in istratio n finan-
W ith o u t going into too detailed an
analysis of section 77-702, cited as ju s
tify in g th e listing of loan com panies
for tax atio n th e sam e as banks, Mr.
Vail says th is w as enacted for th e p u r
pose of securing uniform tax atio n as
betw een state and n ational banks, and
is n o t applicable to loan com panies,
even though th ey exercise one b a n k
ing function.
O ther officers elected w ere R. E.
Stan ley, P ack ers N ational Bank, Oma
ha, first vice president; H. H. Echterm eyer, Live Stock N ational B ank,
Omaha, second vice president; H. N.
Thorpe, U nited States N ational B ank,
Omaha, secretary , and H. P. Conner,
Occidental B uilding an d L oan Asso
ciation, Omaha, tre a su re r.
L iquidation of th e F arm ers State
B ank, th e S tate B ank of Indianola and
th e Indianola S tate Bank, all of In d ian
ola, has been ordered closed afte r de
positors w ere repaid $109,259, D irector
W ade R. M artin of th e state banking
d e p a rtm en t disclosed.
The F arm ers State B ank and State
B ank of Indianola w ere m erged in
1931 after bo th failed. T he m erged
bank, nam ed th e Indianola S tate Bank,
w as closed Ja n u a ry 15, 1934.
H encefo rth W ade M artin is no long
er su p e rin te n d e n t of th e d ep artm en t
of banking, he revealed recently. As
directo r of banking, his new title u n
der L. B. 81, passed by th e recen t leg
islatu re, he re ta in s all of his functions,
how ever.
W. H. Pierce, p resident of th e F irst
N ational B ank of Shelby is atten d in g
th e G raduate School of B anking, New
B unsw ick, New Jersey, an in stitu tio n
of h igher education for b an k officials
conducted by th e A m erican B ankers
A ssociation of R utgers U niversity.
Becomes Bank Examiner
N ebraska A tto rn ey G eneral John
son, by his assistan t, E d w in V ail, ad
vised th a t sm all loan com panies should
be assessed as o th er corporations are
assessed, u pon th e ir tangible and in
tangible pro p erty , and not as b anks or
b an k in g in stitu tio n s. Mr. Vail says
w hile th e sm all loan com panies ex er
cise one fu n ctio n of th e b an k in g b u si
ness—th e m ak in g of loans—he does
n o t believe th e legislatu re intended
th ey should be included u n d e r th e
term “b a n k ” or “b an k in g association.”
A tten tio n is called to th e fact th a t
ch ap ter 8, article 1, of th e 1939 law
contains provisions w hich clearly in
dicate th a t no p erso n or corporation
shall conduct a b an k or engage in th e
business w ith o u t h av in g first obtained
a c h a rte r from th e d ep artm en t of
banking.
Attends Graduate School
P aul Riley, a ssistan t cashier of th e
N ational B ank of N orfolk, rep o rted to
K ansas City, M issouri, on Ju n e 30 to
becom e an a ssistan t national b an k
exam iner.
As we go to press Mr. R iley h ad not
been notified as to his h ead q u arters for
w ork.
Returns to Work
D w ight Clem ent, w ho has been a t
tending th e U n iversity of N ebraska
" T h o u g h tfu l"
In this bank sp eed in correspondent service is
never permitted to oversh ad ow thoughtful atten
tion to the client's n eed s.
U se Continental
N ational's thoughtful service.
(
o n t in e n t a l
R
B
a
a t io n a l
.4
of-
k
LINCOLN
Member Federal Deposit Insurance Corporation
Northwestern Banker
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Federal Reserve Bank of St. Louis
July 19hl
40
• NEBRASKA
d urin g th e p ast year, has re tu rn e d to
his w ork at th e A m erican E xchange
B ank of Elm wood.
Former Banker Injured
George B. Miles, of Cedar Rapids,
N ebraska, fo rm er Stockham banker,
escaped serious in ju ry recen tly w hen
he lost control of his car half w ay
betw een B elgrade and F u lle rto n on
th e KND highw ay and it rolled over
a 30-foot em bankm ent. An exam ina
tion a t th e h ospital revealed a frac
tu re d collar bone and m in o r cuts. The
car w as not badly dam aged.
N E WS
Former Banker Dead
F ra n k E. H arper, 75, retired b an k er
and resident of Cedar County for m ore
th a n half a century, died last m onth
a t his hom e in Belden following an
illness of one year.
Install New Fixtures
R ecently the w ork of installing new
b ank fixtures has been in progress
a t th e F arm ers and M erchants State
B ank of Bloomfield, w here th e m odern
touch has m uch im proved th e in terio r
ap p earance of the bank. The original
•
fixtures w ere
the la tte r p a rt
forty years of
them obsolete
the new est creation in
of the gay nineties, b ut
adequate service m ade
and old-fashioned.
Presides at Meeting
W illiam M. M itten, presid en t of the
Stephens N ational Bank, of F rem ont,
presided at the sem i-annual m eeting
of th e executive council of th e Ne
b raska B an k ers’ A ssociation, held at
the association’s office in Omaha last
m onth. M itten is ch airm an of the
council.
Redecorate Bank
S h o r t C u ts
The Live Stock N ational Bank u ses m an y short cuts
in handling correspondent bank item s b eca u se short
cuts s a v e time and en ergy.
A lso, our officers and
em p lo y e e s are a lw a y s h a p p y to consult with you
on sim ilar short cuts in your ow n bank routine.
Rem em ber, too, your short cut to efficient service on
your Sioux City live stock, grain, h ay, and com m er
cial item s is an account with the Live Stock N ational
Bank, "The Bank at the Yards."
O F F IC E R S
C. L. F r ed rick sen , P r esid en t
M . A. W ils o n , V ic e P r e s id e n t
W . G. N e ls o n , A s s is ta n t V ic e P r e s id e n t
W . C. S ch en k , C ash ier
H . C. L in d u sk i, A s s is ta n t C ash ier
C. L. A d a m s, A s s is ta n t C ash ier
J. S. H a v e r, A ss is ta n t C ash ier
D IR E C T O R S
C. R. M c K en n a , P r es., J o h n so n B is c u it Co.
B . L. S iffo rd , A tto rn ey , S iffo rd & W a d d en
G. F . S ilk n itte r , P r e s id e n t, S io u x C ity
S to ck Y a rd s C om pan y
C. L . F r ed rick sen , P r e s id e n t
M . A . W ils o n , V ic e P r e s id e n t
H . C. B o s w e ll, S ecr eta ry -T re a su rer ,
W e s te r n C o n tr a ctin g C o rp oration
“T h e B a n k at th e Y ards”
M em ber Federal D eposit In s u ra n c e C orporation
LIVESTOCK
NATIONAL
B A N
K
S I O U X C I T Y , IOW A
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19kí
M odernization and redecorating of
th e O verland N ational B ank of G rand
Island w hich has been going on for
some tim e has been com pleted, ac
cording to an announcem ent m ade re
cently by George A rm strong, cashier
of th e in stitu tio n . Chief am ong the
im provem ents w as th e addition of a
suite of office room s in the w est por
tion of th e building, w ith an en trance
from T hird street. A ppearance of the
in terio r of th e bank has been en
hanced by re-decoration and th e com
plete m odernization of equipm ent and
fixtures. A new sign w ill also be
placed above th e bank.
The O verland N ational B ank has
m ade no tew o rth y progress d uring th e
past few y ears and its deposits w hich
totaled about $400,000 in 1934, now
exceed $1,000,000. Officers and person
nel are: A. J. D enm an, president; M.
M. Shapiro, vice president; Geo. J.
A rm strong, cashier; Geo. W. Monson,
Phil H. Thom pson, assistant cashiers,
and Miss Lida Dietz, teller.
Banks Donate Subscriptions
T hrough th e cooperation of five
banks in the N orth P latte Valley,
County A gent C. W. N ibler said he w as
ordering 70 subscriptions to th e n a
tional 4-H club m agazine for th e lead
ers of clubs th ro u g h o u t th e county
w ith funds provided by th e banks.
The banks—Scottsbluff F irst N a
tional, Scottsbluff F irs t State, G ering
N ational, M itchell F irs t N ational, and
M inatare F irs t N ational—all donated
$3 each for th e subscriptions. It will
be possible, th e county agent said, to
supply every club leader in th e county
w ith a copy of th e m agazine during
th e com ing year.
Roll Out the Barrel
An u n d e rta k e r handling his first
fu n eral introduced a cheering note
w hen he said to th e m ourners: “Now,
we w ill pass aro u n d th e bier.”
41
SOUTH
DAKOTA
L . T. M O R R IS
P r e s id e n t
W a terto w n
NEWS
Receives Promotion
Don W illiam s, fo rm erly teller and
bookkeeper a t th e M iners and M er
ch an ts B ank, has been prom oted to
th e position of a ssista n t cashier, ac
cording to Jo h n H irning, p resid en t of
the bank. W illiam s has alread y begun
his new duties.
Canton Man Dies
G ilm an Johnson, 55, in su ran ce sales
m an and city assessor of Canton, died
at th e Canton h ospital last m onth.
Mr. Jo h n so n has been located in
C anton since 1911, w hen he sta rte d as
bookkeeper w ith th e L incoln County
Bank. Mr. Jo h n so n also served for
th re e y ears w ith th e F ed eral F a rm
Loan A ssociation of Lincoln C ounty
w hen th e ir offices w ere located in
Canton.
G oes to California
Roy Cannon of F t. P ie rre left re
cently for Los A ngeles, C alifornia,
w here he w ill w o rk for th e B ank of
America.
Bank Clearings Increased
Sioux F alls b an k clearings gained
$2,249,780.49 d u rin g May, 1941, over
the to tal of th e sim ilar m o n th of th e
previous year, it w as revealed today
at th e Sioux F alls clearinghouse in th e
N o rth w est S ecurity N ational bank.
The to tal for May, 1941, is $9,309,486.57, w hile th e M ay b an k clearings
for last y e a r am ounted to $7,059,706.08.
G E O R G E M. S T A R R IN G
S ecreta ry -T rea su rer
H u ro n
chapters, ch ap ter branches and study
groups th ro u g h o u t the U nited States,
th is y ear is celebrating th e 40th an n i
v e rsa ry of th e In stitu te ’s founding.
The school has a stu d en t enrollm ent
of over 36,000 and a total m em bership
of close to 68,000, and has devoted its
40 y ears of service to th e education of
young m en and w om en in th e b an k
ing business.
The officers th is year w ere Russell
B. K nudsen, A m erican State Bank,
Y ankton, president; M artin Slemp,
F irs t N ational Bank, Y ankton, secre
ta ry -treasu rer; and th e board of gov
ern o rs consisted of A. L. M ikkelson,
S ecurity State Bank, W akonda; H. L.
Sm ith, N ational B ank of S. D., V er
m illion; R. B. Stevens, Citizens Bank,
V erm illion, and Jo h n N. Thom sen,
B ank of Centerville.
H. E. E dm unds, cashier of the A m er
ican S tate Bank, Y ankton, and a prac
tical b an k er w ith m uch experience and
ability, acted as in stru c to r for th e
class. At th e com pletion of th e course
Mr. E dm unds w as p resented a w rist
w atch as a token of appreciation from
th e class for his efforts in bringing
th e class to a successful conclusion.
Retired Banker Dies
F u n e ra l services w ere held at the
L u th e ran Church in B ridgew ater re
cently for Alex A. M ayer, 72, grain
dealer and form er banker, w ho died
a fte r a y e a r’s illness. He had been a
resid ent of B ridgew ater since 1892.
Financial Counselor
Complete Course of Study
A. L. M ikkelson and Miss N adine
K etchum of th e S ecurity State B ank
of W akonda w ere m em bers of a b a n k
ing group re p re se n tin g seven tow ns to
com plete six m o n th s of stu d y last
week. The class m et each T h u rsd ay
evening a t Y ankton. Tow ns re p re
sented w ere Y ankton, Irene, C enter
ville, Gayville, Tabor, Viborg, W akon
da an d V erm illion.
T he S o u th eastern South D akota
S tudy G roup of th e A m erican In s ti
tu te of B anking, along w ith 451 local
A. J. H arrin g to n , W en tw o rth b an k
er, recen tly em barked upon his fortyfirst y ear as financial counselor to the
E a st Lake county and w est Moody
county area.
Mr. H arrin g to n established the
W en tw o rth B ank in 1901 and opened
for business May 18. He operated it
as a priv ate in stitu tio n u n til 1916,
w hen an application w as m ade to in
corporate as a state bank. The nam e,
W en tw o rth Bank, w as continued u n til
1935, w hen it w as changed to D akota
State B ank and th e m ain office w as
m oved to Colman. H ow ever, a b ranch
office w as k ep t at W entw orth, and
Mr. H arrin g to n elected to rem ain in
charge there, leaving his tw o sons,
C. W. and E. J. H arrin g to n , to ru n
the Colman bank.
T he senior Mr. H arrin g to n is now
chairm an of th e board of directors.
C. W. H arrin g to n is president; J. P.
H arrington, W entw orth, vice p resi
dent; E. J. H arrington, cashier, Col
man; Celeste H arrington, cashier,
W entw orth, and Mae Lellelid, book
keeper, Colman.
Directors Meeting
The reg u lar m eeting of th e directors
of th e B ank of K im ball w as held a t
K im ball recently. R egular business
m atters w ere tak en up.
The follow ing directors w ere p res
en t a t th e m eeting: M. P lin Beebe
and Lloyd Cronholm of Ipsw ich, L. M.
L arsen of W essington Springs, Mrs.
J. H. D rips of G ann Valley, and R. A.
Johnson of Kimball.
Transferred to Sturgis
Joe D eM erssem an w as tra n sfe rre d
from th e R apid City u n it of th e F irs t
N ational B ank of th e Black Hills,
w here he had been employed, to the
S turgis bank. D eM erssem an had been
bookkeeper at th e local in stitu tio n and
his new duties w ill be a com bination
of bookkeeping and o ther w ork at
Sturgis.
Branch Bank to Open
The State B anking D epartm ent has
authorized th e F a rm e rs and M er
chants B ank of P lan k in to n to establish
a b ran ch office at W hite Lake, E rlin g
Haugo, su p erin ten d en t of banks, has
announced. W hite Lake has been
w ith o u t a b ank for nine years.
A uthorization has also been given
th e B ank of Lem m on to set up a
b ran ch office a t Bison.
Attend School
F. E. Bow m an and R. B. Stevens,
of th e Citizens Bank, V erm illion, have
been in New B runsw ick, N. J., w here
th ey attended th e g raduate school of
banking conducted by th e A m erican
B an k ers’ A ssociation a t R utgers U ni
versity.
T hey w ere gone for about tw o
weeks. The w ork of th is school con
sists of th ree sum m er sessions of tw o
w eeks each a t R utgers and th e com
pletion of a thesis.
— And An Insurance Policy
A ped estrian is a m an w ho has a
wife, a son, tw o dau g h ters and a car.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July Í941
42
iw h Z e A .
a o u
toto t h e
M IN N EA P O LIS A Q U A T E N N IA L
Miss Eva Brunson, reigning
queen of the second annual
Minneapolis Aquatennial
celebration issues a special
invitation to friends of the
"Northwestern" to come to
Minneapolis for the big
festival.
PA R A D ES
R O D E O — H A R N E S S R A C IN G
A Q U A F O L L IE S
B O A T R A C IN G
C A N O E D ERBY
Q U E E N O F THE LAKES C O N T EST
D e p a rtm e n t o f B a n k s a n d B a n k e rs
Win. N. Johnson
F. W. Conrad
V ice P re sid e n t
A sst. V ice P re s.
D. E. Crouley
A sst. C a sh ier
L. P. Gisvold
A sst. C a sh ier
NORTHWESTERN NATIONAL BANK
AND TRUST COMPANY
M in n eap olis, M in n esota — M arquette A v e n u e : 6 th to 7 th Street
MEMBER
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19bl
F E D E R A L
D E P O S I T
I N S U R A N C E
C O R P O R A T I O N
43
loans are $440,000. W e are happy to
m ake th is correction for th e inform a
tion of our readers.
MINNESOTA
Bank Debits
T he to tal of debits to individual ac
counts for th e w eek ending Ju n e 18th
as rep o rted by th e W inona Clearing
H ouse A ssociation w as $1,695,561.38
com pared w ith $1,463,067.40 a w eek be
fore and $1,416,557.27 a y ear ago.
t
NEWS
W IL L IA M D U N C A N , J r.
S ecr eta ry
M in n ea p o lis
O. G. J O N E S
P r esid en t
R ed W in g
Branton Dies
J. F. B ranton, 82 y ears old, of th e
B ank of W illm ar and a directo r of th e
C entral Life A ssurance Society, died
a t W illm ar last m onth.
Increased Resources
R esources of th e F irs t F ed eral Sav
ings and L oan A ssociation of St. P aul
are now over $2,800,000, according to
H a rry M. M iller, secretary -treasu rer
of th e organization. T his is a fa r cry
from th e $198,000 resources a t th e end
of 1935, follow ing one y e a r in business
afte r th e association w as c h a rte red by
the U nited S tates g o v ern m en t in 1934.
G row th has been constant, and the
organization today is one of th e m ost
o u tstan d in g savings and loan in s titu
tions in th e country, Mr. M iller
pointed out.
Officers of th e F irs t F ed eral Savings
and L oan A ssociation are G erhard J.
B undlie, p resident; T hom as F. E llerbe,
vice president; Joseph J. M oshofsky,
vice president; F ra n k E. V illaum e, vice
president; H a rry M. M iller, secretarytre a su re r; L eonard M. Sm ith, assista n t
secretary; W illiam H am m and P aul
Steenberg, directors.
Complete Remodeling
In order to b e tte r serve its custom
ers and friends, the N o rth w estern
State B ank of St. P au l has com pleted
a rem odeling pro g ram w hich includes
new, low-type co u n ter fixtures, en
larged cu sto m ers’ lobby space and
m ore adequate safety box facilities.
Minnesota Bank Loans
F o rty -th ree p er cent of b an k s in
M innesota m ade m ore th a n 472,000
loans to talin g $400,000,000 to business
firm s and individuals th ro u g h o u t th e
state d u rin g th e second half of 1940,
th e sem i-annual su rv ey of b an k lend
ing activ ity m ade by th e research
council of A m erican B an k ers Associa
tio n show ed last m onth.
T he A. B. A. loan su rv ey w as p a r
ticipated in by 291 M innesota banks,
or 43.1 p er cent of th e 675 in th e state.
T he 291 banks rep o rted th ey made,
b etw een Ju ly 1 and Decem ber 31, 1940,
a to tal of 344,959 new loans totaling
$254,074,902; 124,387 renew als of loans
to taling $135,877,895 and 3,569 new
m ortgage loans to taling $10,940,361, a
to tal of 472,915 loans to a total of
$400,893,158.
Annual Picnic
A nnual picnic of officers and em
ployes of M idland N ational B ank &
T ru s t Com pany of M inneapolis w as
held last m onth at H otel Del Otero,
S pring P ark. T he program included
sports, dinner, speed-boating, dancing
and en tertain m en t. W endell A. M att
son is general chairm an.
New Officers Installed
New officers of Tw in Cities chapter,
A m erican Savings and Loan In stitu te,
w ere installed last m onth at exercises
a t Commodore Hotel, St. Paul, for
graduates.
The officers are Jo h n A. W orks, St.
Paul, president; K enneth A. Young,
M inneapolis, v i c e president; Miss
Agnes Corbett, St. Paul, tre a su re r, and
Miss R osam und Fisch, M inneapolis,
secretary.
A grad u atio n b an quet w as attended
by 150 savings and loan firm employes.
R oger A. G urley w as toastm aster.
R obert Beach of Chicago gave the
prin cipal address.
In a five m in u te speech contest held
u n d e r direction of P rofessor Owne P.
M cElm eel of St. T hom as College, w in
n ers w ere F re d B jorklund of St. Paul,
C harles Spear of St. P aul and Lily
K ru g er of M inneapolis.
Correction
L ast m onth, in rep o rtin g figures for
th e S tate B ank of F arib au lt, deposit
figures for th e b ank w ere m entioned
as “standing at $420,000 as com pared
w ith $360,000 a y ear ago.” W e find
th a t th e above figures refer to the
loans and discounts of th e in stitution,
and n ot deposits.
D eposits of the S tate B ank of F a ri
b au lt are now around $800,000, and
Bank Modernized
W ork of m odernizing and im prov
ing th e building occupied by the F i
delity S tate Bank, M inneapolis, is now
about com plete, officers stated re
cently.
E x tensive alteratio n s have been
made, all dep artm en ts receiving a tte n
tion, new, m odern fixtures have been
installed th roughout, m aking available
to p atro n s increased and adequate fa
cilities, need of w hich has been felt by
the fast grow ing in stitu tio n for some
tim e.
V ernon E. M ikkelson is p resident of
the bank, E m il G ustafson, vice presi
dent; H erb ert C. J. Olson, cashier.
These officers, to g eth er w ith th e fol
low ing local business and professional
leaders, co nstitute th e board of direc
tors: M essrs. O. M. A nderson, George
O. H art, H en ry A. Johnson, Dr. F ra n k
B. Mach, E m m ett L. Duem ke, Sem an
K aplan, Salig K aplan and Nels Sw an
son.
Attend Convention
A ttending th e b a n k e rs’ convention
in St. P aul last m onth from th e F irst
N ational B ank and th e Security N a
tional B ank of H opkins w ere W alter
Zastrow , F ra n k Kriz, Otto Cerm ak,
Svante Severson, A ngie Souba, F ra n k
Sefcik, G. J. A lbrecht, Lloyd Schneiderh an and Miss E unice Valesch. The
m en w ere accom panied by th e ir wives
w ho w ere guests a t a luncheon a t the
St. P aul A thletic Club.
Depositors Paid in Full
F.
A. A m undson, M innesota state
com m issioner of banks, deposited in
th e m ails last m onth checks for a to
tal of $10,790.58 for 498 depositors of
th e F a rm e rs and M erchants State
B ank of W abasha, rep resen tin g a divi
dend of 6 p er cent and com pleting pay
m ent of th e full 100 per cent w hich
th ey had on deposit w hen th e bank
closed A pril 3, 1933.
Annual Meeting Held
T he F airm o n t N ational F arm Loan
A ssociation is in excellent financial
condition, it w as revealed a t th e a n
nual m eeting last m onth.
T here are 481 loans outstanding, the
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Federal Reserve Bank of St. Louis
July 194 /
44
total am ount of w hich is $2,306,200, it
is show n by th e re p o rt of Jo h n F.
Haeckel, secretary-treasu rer.
Of these, 280 are federal loans to
talin g $1,707,800, and 201 are com m is
sio n er’s loans, to talin g $598,400. F ed
eral loans are th e first m ortgage type,
com m issioner’s loans are second m o rt
gages.
The tw o d irectors w hose term s ex
pired th is year, J. C. M usser and Jos.
Koehler, w ere re-elected.
The sam e officers w ere chosen to
guide th e destiny of th e association for
an o th er year, as follows: J. C. M usser,
president; Joseph K oehler, vice p re si
dent, and Jo h n F. H aeckel, secretarytreasu rer.
Lloyd Nelson of St. Paul, a ssistan t
m anager of field service of the F ederal
L and Bank, discussed in terest rates,
stock elim ination and debt adjustm ent.
Appointed Manager
A nnouncem ent of th e appointm ent
of C. L. M ikkelsen, form erly of Plainview, as m anager of th e B ank of A m er
ica in F ullerton, California, w as m ade
by A. J. Grock, vice chairm an of the
board of the institution.
The new m anager goes to F u llerto n
from L ancaster, California, w here in
addition to serving as m anager of the
B ank of Am erica, he w as active as a
com m unity leader.
He began his b anking career in his
native state of M innesota a fter g rad u
ation from C arleton College, later be
com ing a state b ank exam iner and dep
u ty com m issioner of banks. In 1930
he w en t to California to join the loan
analysis staff of B ank of A m erica in
Los Angeles. T hree y ears later he re
ceived his m anagerial ap p ointm ent at
L ancaster.
G oes to California
E in a r Joh n so n severed his connec
tion w ith th e B ank of W illm ar last
m onth, and left for Los Angeles, Cali
fornia, w here he w ill be em ployed in
the B ank of Am erica. He has w orked
for th e B ank of W illm ar d uring the
p ast year, p rio r to w hich he w as in
th e insurance business and w ith the
H om e M anagem ent Company.
F o r six y ears he w as em ployed in
the Hom e State B ank of K andiyohi
and for a y e a r at G rand Rapids and
Floodwood.
A ccepts New Post
Carl A lvin has resigned his position
as a ssistan t cashier at th e F irs t State
B ank of B ayport and w ill leave soon
for Los Angeles, California, w here he
has accepted a position w ith th e Bank
of America.
Mr. A lvin has been affiliated w ith
th e F irs t S tate B ank of B ayport for
the last 18 years.
HELPING
ALL
Realizing the value and importance of
modern, efficient farm tools, bankers have
been a potent force in the promotion of
prosperity of rural communities. In offer
ing a helping hand to deserving farmers
who lack the ready cash for buying needed
tools and power, bankers have helped
those farmers to becom e better customers
for all business places in the community.
This year bankers and MM dealers will
again be cooperating to bring more MM
tractors and machines to deserving farm
ers in their communities. In doing so,
they'll be performing a service not only to
the farmers them selves but to the com
munity as a whole, and indirectly the
whole nation.
Plans to Remodel
Above: The Harvester 12 foot — original light
weight, big capacity combine ter all crops —
world's largest seller in that size.
MM Tractors and machines will this year bring to
more farmers new dependability in performance
and new economy in operation.
Below: "J" Harvester — offered in 6 and 8 foot
sizes — one or two man operation.
[MOOtl
Sa»
¿ÁÍMÁ,
Minneapolis-Moline
POW ER
IM P L E M E N T
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19)1
COM PANY
M lN N E S O T A .'u .s ! A
P lan n in g is being sta rte d on com
plete rem odeling and an addition at
th e C arver C ounty S tate B ank of
Chaska. A change will be m ade in th e
front, th e p resen t in te rio r w ill be com
pletely re-arranged, and an addition
w ill ru n back 25 feet from th e p resen t
stru ctu re, b u ilt 40 y ears ago.
Bank Improvements
More im provem ents for th e conveni
ence of custom ers and em ployes w ere
com pleted recently a t th e F irs t Na
tional Bank, F arm ington.
The te lle r’s cage has been enlarged
to include th e space in th e fro n t end
form erly occupied by th e office of Vice
P resid en t C. E. Cadwell, w hose office
has been m oved to th e southw est cor
n er of th e building.
The iron grill has been rem oved
from th e u p p er half of the w hite m a r
ble cage, allow ing m ore light. The top
of the m arble is now em bellished w ith
sm all bronze posts connected w ith n a r
row strip s of frosted glass.
The th ird te lle r’s w indow has been
added in th e new section and nearby
is an o th er cu sto m ers’ desk.
45
Twin C ity News
d e p o s it a s
selected M inne
apolis for its 1942 convention, th e city
being u n an im o u sly chosen a t th e re
cent convention a t Buffalo, New York.
The M inneapolis m eeting probably w ill
be held in May.
R. O. T hayer, vice p resid en t of F ifth
N o rth w e ste rn N ational B ank, w as
elected vice p resid en t of th e natio n al
organization, w hich m eans he w ill ad
vance to th e p residency at th e m eeting
here.
N
a t io n a l s a f e
s o c i a t i o n has
Paul W. Loudon of Piper, Jaffray
and Hopwood, M inneapolis in v estm en t
banking firm, has been nam ed m em ber
of a com m ittee to pick nom inees for
officers of th e In v e stm e n t B ankers
A ssociation of A m erica. E lection w ill
be n ex t December.
Sm ith w as in th e banking business
in M ontana and a bank exam iner th ere
p rio r to joining th e exam ination de
p a rtm e n t of Banco in 1933. He be
came a ssistan t vice presid en t in 1936.
By James M. Sutherland
Spe cial C orre spon de nt
frig e rato r Company. T h eir addition
increases th e size of the board to fif
teen.
B renton, a n ative of Iowa, resigned
as p resid en t of th e Iowa-Des Moines
N ational B ank and T ru st Com pany in
1933 to become vice p resid en t of N o rth
w est B ancorporation. He w as elected
tre a s u re r in 1935 and a director in 1938.
H is resignation resulted from th e n e
cessity for his re tu rn in g to Des Moines
to look after his in terests there.
A urand, his successor, joined Mid
land in 1925 on g rad u atin g from th e
U n iv ersity of M innesota. He w as
elected assistan t cashier in 1933 and
vice p resid en t in 1938.
H enry S. K ingm an, presid en t of
F a rm e rs & M echanics Savings Bank,
M inneapolis, has been elected a tru s
tee of th e M utual Life In su ran ce Com
pany of New York. He recently w as
re-elected to th e council of ad m in istra
tion of th e N ational A ssociation of Mu
tual Savings Banks.
R.
C. M ees, m anager of the M inne
apolis office of Paine, W ebber & Com
pany, has been ad m itted to the firm as
a general p artn er. He has been con
nected w ith th e inv estm en t house
since 1919 and its m anager since 1936.
H. S. K ingm an, p resid en t of F a rm e rs
and M echanics Savings B ank, has been
elected a m em ber of th e board of tr u s
tees of M utual Life In su ran ce Com
pany of New York.
W . H. B ren ton h as resigned as vice
p resid en t and tre a s u re r of N o rth w est
B ancorporation and is re tu rn in g to his
form er home, Des Moines, to look a fte r
his b an k in g and b u siness in te re sts
there.
E lected B re n to n ’s successor a t a
m eeting of Banco d irecto rs w as Calvin
W. A urand, w ho leaves his post as vice
presid en t of M idland N ational B ank &
T ru st Com pany to ta k e over h is new
duties w ith th e b an k holding com pany.
R. L. Sm ith w as advanced from as
sista n t vice p resid en t to vice president,
w hile tw o new directors, both St. P aul
business leaders, w ere added to th e
board.
The new directors are F rederick K.
W eyerh aeu ser, p resid en t of th e W ey
erh a e u se r Sales Com pany, and W alter
G. Seeger, p resid en t of th e Seeger Re-
O
u
t - o
f - T
o
w
n
R
a
n
k
s
O ut-of-tow n banks and bankers w ill find here
com plete banking facilities for prom pt and
economical handling of accounts in Chicago. We
would appreciate the opportunity of serving you.
C
it y
N
a t io n a l
A N »
TRUST
2 0 8
S O U T H
COMPANY
B
of
L A S A L L E
an k
Chicago
S T R E E T
(Member Federal Deposit Insurance Corporation)
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19 M
46
•MINN ESOTA
NEWS*
A nnual picnic of M idland N ational
B ank & T ru st C om pany w as held Ju n e
24th a t S pring P ark , L ake M innetonka.
W endell A. M attson w as g eneral ch a ir
m an, assisted by H okan M oreen, Si
Guy LaLone, F irs t N ational B ank &
T ru st Company, has been re-elected
tre a su re r of th e B etter B usiness Bu
reau of M inneapolis.
gurd M yklebust, E lizab eth D ollenm ayer, M arilyn Baker, L ow ell W alker,
John H unt, R ose Thom pson, V irginia
W olfe and R obert H agen.
A. S. N ew com b, vice p resid en t of
B loom ington-Lake N ational Bank, has
been elected chairm an of arran g em en ts
for the 1942 convention of th e N ational
Safe D eposit A ssociation, to be held in
M inneapolis and St. Paul. He w as
nam ed at a m eeting of th e M innesota
association.
R ichard C. L illy, p resid en t of F irs t
N ational Bank, St. Paul, has been re
elected a d irecto r of th e G reat N o rth
ern Railw ay.
Remodel Ely Bank
W ork of rem odeling th e building of
th e F irs t N ational B ank of E ly is pro
gressing, and recently w orkm en w ere
in stallin g the counter and co n stru ct
ing a tile ceiling.
The co u n ter w ill be of low type, of
w aln u t finish, and w ill extend th e
length of the building. T he fro n t office
is being enlarged. A room for th e
m achines is being built at the re a r of
th e building, w hile in th e basem ent
w ill be a d irecto rs’ room.
Annual Meeting Held
T he an n u al stockholders m eeting of
th e State B ank of B lom kest w as held
in th e b ank last m onth.
D irectors re-elected w ere E dw in Selvig, Geo. M. Robbins, Jam es M atson
and N. W. N elson of Hancock.
Officers w ere all re-elected: Edw in
Selvig, president; Geo. M. Robbins,
vice president; N. W. Nelson, vice
president; Jam es M atson, cashier, and
E lden M atson, a ssistan t cashier.
R eports show ed th a t th e b ank has
enjoyed an excellent year.
Former Banker Deceased
Alois M. Schaefer, pro m in en t retire d
civic leader and b ank official of Jordan,
died at St. R aphael’s H ospital in L ittle
Falls recently, a t th e age of 64. He
had been in th e hospital th e re for
about th re e w eeks w ith h e a rt trouble,
b u t previously to th is attack had been
ailing for several years.
F o r n early a q u a rte r of a century,
he w as cashier and presid en t of th e
Peoples S tate Bank.
Banker Elected Trustee
C o n t in 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 s t Co m p a n y
of C h ic a g o
H en ry S. K ingm an of M inneapolis,
presid en t of th e F a rm e rs & M echanics
Savings Bank, has been elected a tru s
tee of th e M utual Life In su ran ce Com
pany of New York, it w as announced
recen tly by Lew is W. Douglas, p resi
dent of th e com pany.
Mr. K ingm an and Roswell F. Magill, New York, form er under-secretary
of th e U nited States T reasury, w ere
nam ed to fill vacancies on the M utual
Life board.
Resigns Position
Member Federal Deposit Insurance Corporation
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 1941
W. G ordon H egardt, n ative of Du
lu th and vice presid en t of th e F irs t
and A m erican N ational B ank of th a t
city since 1938, recently presen ted his
resignation to George P. Tweed, p resi
dent.
Mr. H egardt announced th a t he w as
leaving w ith his m o th er for a vacation
to u r of th e w est coast.
47
exact—he w as th e golf cham pion of
Texas—no doubt ju st th e o ther sta r
of the lone sta r state. H is low est golf
score on any course is 67.
NORTH
DAKOTA
J. I . H E G G E
P r e s id e n t
H illsb oro
NEWS
Prominent Man Dies
M atthew L ynch of Lidgerw ood, 83,
died a t his hom e th e re last m onth.
Mr. L ynch w as a fo rm er state re p
resen tativ e, and p ro m in en t in political
affairs of his county. He organized
th e L idgerw ood S tate B ank in 1900,
and w as p resid en t of it for some tim e.
T his b an k is now know n as th e F irs t
N ational B ank of Lidgerw ood.
G oes to Vermillion
Jo h n T. Sanger, cashier of th e F irs t
N ational B ank for th e p ast th re e
years, announced recen tly th a t he w as
leaving V alley City for V erm illion,
S. D., w h ere he w ill continue w ith th e
F irs t B ank Stock C orporation in th e
N ational B ank of South D akota in th a t
city. T he change is effective Ju ly 1.
Former Banker Dies
W illiam H en ry Cole, 80, resid en t of
S arg en t and R ansom counties since
1882, died a t his hom e in S tiru m last
m o n th a fte r a lingering illness.
D uring his life he held m ost of th e
civic offices of V ivian tow nship and
w as p resid en t of th e S tiru m State
B ank d u rin g its existence from 1908
to 1926.
Banker Passes Away
C. C. W A T T A M
S ecr eta ry
F a rg o
th e convention are R. A. H. B ran d t
and W. E. Tooley of the F irs t N ational
B ank and H. H. W estlie, a director;
H a rry M. G rant and J. S. W estlake
of th e U nion N ational Bank; C. P.
K jelstru p of th e A m erican State Bank;
G. H. Kalbfleisch and P. H. Peterson.
Also atten d in g th e convention w ere
Mrs. B randt, Mrs. K jelstru p and Mrs.
W estlie.
Bank Remodeled
The F arm ers State B ank of Richardton has recently been rem odeled and
b ro u g h t com pletely up-to-date. A new
felt tile floor has been laid, th e w in
dows are equipped w ith new Venetian
blinds, and cut-aw ay counters w ith a
glass grill aro u n d th e top have been
installed.
The F a rm e rs S tate B ank has show n
a su bstan tial increase in deposits d u r
ing th e p ast eight years, as total de
posits in 1933 w ere $90,000, and th e
figure at th e p resen t tim e is $247,000.
Officers of th e b ank are as follows:
F re d Born, president; Lee Hoff and
A ugust Koesel, vice presidents; I. E.
Giedt, cashier; and P. M. B urger and
C atherine N iehouse, assistan t cash
iers.
N EW S A N D VIEW S
(C ontinued from page 22)
T.
L. B eiseker, p resid en t of the
The capital, su rp lu s and undivided
W ells C ounty S tate B ank of F essen
profits of th e b an k are $105,000.
den, passed aw ay recen tly a t F argo
If any o th er b an k er living in a tow n
ho sp ital follow ing a m ajor operation.
of th is size or sm aller has deposits
equal to these, we w ould be glad to
Lidgerwood Banker Dies
h e a r from him and publish th e figures
Jo h n H. Moviu, re sid e n t of L idger in th e nex t issue of th e N o r t h w e s t e r n
wood since 1887 and organizer w ith his B a n k e r .
b ro th e r of b an k s and o th er business
houses in th a t vicinity, died Ju n e 24
L ouis Jacoby, th e popular re p re se n t
on th e a n n iv e rsa ry of his 81st b irth ative of th e Chase N ational B ank in
day.
th e ir Chicago office a t 135 South La
Salle street, h a sn ’t been playing golf
for about a y ear because of a bad knee,
Attend Convention
b u t he is now back in th e gam e again
A n u m b er of M inot b a n k e rs and
and knocking th em dow n th e fairw ay
businessm en w e n t to B ism arck for th e
as fa r as th e eye can see.
39th a n n u al convention of th e N o rth
L ouis’ hom e tow n is in Dallas and
D akota B an k ers Association.
a few y ears ago—only tw en ty to be
Am ong th e M inoters w ho atten d ed
H enry A. W allace, vice presid en t of
the U nited States, in a recen t discus
sion of th e ag ricu ltu ral situation, said
th a t a g ricu ltu ral groups should: “Take
caution in pressing dem ands for hig h
er farm prices lest th ey in cur public
resentm ent, lose crop control pro
gram s and suffer a terrib le debacle
w hen peace comes.
“Those w ho show ed a greedy, g rab
bing and political sp irit d uring th e
p resen t em ergency can expect to reap
th e w h irlw in d later on. F a rm e rs m u st
n ot overplay th e ir hand a t th is tim e.
“E n actm en t of legislation proposing
100 p er cent p arity loans for m ajor
crops w ould have been a serious m is
take, and I questioned th e w isdom of
th e 85 p er cent loans congress ap
proved.”
Ir v in g B erlin has w ritte n a defense
savings cam paign song en titled “A ny
B onds Today?” w hich is now being
w idely used in th e cam paign to sell
these w ell-know n securities.
The chorus goes as follows:
A ny bonds today?
B onds of freedom , that’s w h a t I’m
se llin ’.
A ny bonds today?
Scrape up the m ost you can,
H ere com es the freedom m an
A sk in g you to buy a share of freedom
today.
A ny stam ps today?
W e’ll be b lessed if w e all in v est
In the U. S. A.
H ere com es th e freedom m an.
Can’t you m ake tom orrow ’s plan?
N ot u n less you buy a share of freedom
today.
E dw ard H u w aldt, executive vice
presid en t of th e Com m ercial N ational
B ank of G rand Island, N ebraska, tells
us th a t his b ank now has deposits of
over $2,036,000. Loans and discounts
are $636,000, and su rp lu s and profits
of $112,601.
T his la tte r item w as published in
th e N ebraska-Iow a B ank D irectory as
$12,601, and we are happy to m ake
p roper correction of these figures here.
Also, th e b ank has a capital of $100,000 and is enjoying a v ery prosperous
year.
O ther officers of th e b an k are David
K aufm an, president; V ernon B ice,
cashier, and L eslie B elford, assistan t
cashier.
W ith th e service idea w ell in m ind
and m aking it attractiv e and easy for
ban k custom ers to do business w ith
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 1941
48
•
NORTH
the F ran klin Square N ational Bank
of N assau, Long Island, th ey opened
a “sum m er house a n n e x ” w ith a
park in g lot and love seats all in co
lonial style for th e use of its custom
ers. Besides im proving service all
around, th e in v itatio n provides an
atm osphere th a t m akes business a
pleasure. A lready, one-third of th e
b a n k ’s business is tra n sa c te d in th is
“outdoor b a n k .”
K irk F ox, editor of Successful Farm-
DAKOTA
NEWS
ing, in discussing “Today’s F a rm Sit
u atio n,” said, “Food habits of the
A m erican people are certain to be def
in itely influenced by th e w ar. Of
1,000,000 m en drafted, 400,000 have al
ready been rejected, largely because
of n u tritio n al deficiencies m aking
them selves evident in poor teeth.
Those successful in m eeting arm y re
quirem ents w ill become accustom ed to
a diet rich in m eat, vegetables, m ilk
and eggs, w hich will influence th e ir
lives after discharge from th e arm y .”
•
Ben S. W oodw orth, advertising m an
ager of th e F irs t N ational B ank and
T ru st Com pany of M inneapolis, in
form s us th a t his in stitu tio n w as th e
first business organization in M inne
apolis to offer all its em ployes a vol
u n ta ry pay roll deduction plan for th e
purchase of Defense Savings Bonds.
P u rchase of bonds and p articipation in
the plan are stric tly voluntary.
SERVE THE PUBLIC AT
A PROFIT
(C ontinued from page 26)
Midwest Poultry Products Go Abroad
Denmark and Holland, former leading ex
porters of fancy eggs, are cut off from their
British market; their poultry flocks depleted.
Into this breach stepped the farm poultry
flocks of the midwest. They are meeting this
new need, easily and swiftly.
American
farmers will have purchased an estimated
one billion baby chicks before December
31st— by far the largest number on record
for one year.
This vast expansion requires more mash
feeds from millers; more poultry equipment
from manufacturers; more remodeling of farm
buildings; increases in hatchery breeding
flocks. One power company estimates more
new electric brooders placed on its lines in
April, 1941, than in two previous seasons
combined.
One hatchery is increasing its
sales by over 2 million chicks.
Credit supplied by midwest banks is an es
sential part of this increased activity in the
poultry field. The Drovers National Bank,
both directly and in cooperation with corre
spondents, is assisting in this important part
of the National Defense Program.
DRCYERS NATIONAL BANK
DROVERS TRUST & SAVINGS BANN
U N I O N
S T O C K
Y A R D S ,
C H I C A G O
M em bers, Federal D eposit In su ra n c e C orporation
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July Í9'/1
upon existing personnel, and th e need
for education and tra in in g is urgent.
It is g ratify in g to note th a t th e
A m erican In stitu te of B anking will in
clude in its cu rricu la n ex t year a com
plete course in consum er credit. The
textbook has been w ritte n by Jo h n H.
Lucas, vice presid en t of th e PeoplesP ittsb u rg h T ru st Company, and I
have had th e privilege of read in g it
in m an uscript form as one of th e com
m ittee of editors. It w ill be m ost com
plete, and I urge th a t anyone seriously
in terested in this phase of banking
procure a copy as soon as it is off th e
press, and m ake a serious stu d y of it.
Also, I w ould be derelict in m y d u ty if
I did not call a tten tio n to th e advice
and help w hich is available in this
field to all m em bers of th e A m erican
B anking Association. G uidance and
counsel are alw ays available th ro u g h
the consum er credit division, w hich is
u n d er th e m anagem ent of a dynam ic,
efficient, and th o ro u g h ly sound b an k
er, W alter B. F rench.
As to rates and profits, th is is large
ly up to th e astu ten ess and executive
ability of th e m anager of your in stall
m ent loans. Rates, generally, v ary
from 5 per cent sim ple in te re st to 6
per cent “added on.” In th e latter
case, w ith reg u lar equal m onthly pay
m ents, th e charge w ould am ount to
alm ost 12 per cent on th e average
am ount of m oney outstanding. This
would be u su rious in some states u n
less th ey had qualifying legislation, or
unless th e m oney w ere deposited from
m onth to m onth in a savings account,
w hich by co ntract becam e additional
collateral to th e loan. If th e la tte r de
vice is em ployed, th e collateral sav
ings account should be tre a te d as any
o th er savings account, and should
earn th e sam e in te re st as any other
savings account. As to th e soundness
of this m ethod of operation, a dis
cussion can be evoked a t any tim e,
and u n d er p roper conditions can ru n
“far, far into th e n ight.”
49
H . R. YOUNG
P r e sid e n t
A rlin gton
M oves to Brighton
L. B. L uith ly , w ho has been o p erat
ing th e R ubio Savings B ank for th e
p ast 35 y ears m oved his m ain b an k to
B righton Ju ly 1st, re ta in in g th e Rubio
b an k as an office. “W hen I opened th e
Rubio b an k in W ash in g to n county in
1906 we paid 4 p er cent in terest, never
h eard tell of a chattel m ortgage,
tru ste d everyone on ‘th e ir face’ and
‘m ade m oney’,” rem ark ed th e b a n k e r
w ho know s all 125 citizens of Rubio
and every fa rm e r in th e com m unity
“like a book.”
Banker Deceased
F red II. K eseberg, 42, a ssista n t
cashier of F irs t N ational B ank of
W averly, died suddenly a t his hom e
th e re last m onth.
Mr. K eseberg w as w ith th e State
B ank at Plainfield for one y e a r and
w ith th e State B ank of W averly for
10 y ears before becom ing associated
w ith F irs t N ational B ank. He w as
also a d irecto r of th e n atio n al bank.
Sale Approved
A pproval of com prom ise sale, public
and p rivate, of rem ain in g assets of th e
N o rth w est D avenport Savings B ank
w as approved last m o n th by D istrict
Judge W. W. Scott. T he sales, a u th o r
ized by earlier orders, yielded $3,730.64
to th e receivership, p a rt of th e am o u n t
h aving p reviously been reported. Bills
receivable b ro u g h t $1,990.43; stock a s
sessm ents $178.90; cash item s, $65.41,
fu rn itu re and fixtures, $250; bonds an d
securities, $3.50; non-ledger assets
$1,241.40.
Banking Board
G overnor W ilson recen tly appointed
th re e b an k in g board m em bers and re
appointed a fourth, B. F ra n k K auff
m an, Des Moines.
New m em bers are B. P. St. John,
W eb ster City; B. A. G ronstal, Council
Bluffs, and R alph E a stb u rn , Fairfield.
T hey replace H. P. Dowling, H arlan;
L. J. S chuster, Clinton, and P au l H.
H uston, Cedar Rapids.
FRANK W A RN ER
S ecreta ry
D es M oines
Mr. K auffm an is p resid en t of the
B ankers T ru st Co., Des Moines; G ron
stal p resid en t of th e Council Bluffs
Savings Bank; St. John, cashier of the
F irs t State B ank a t W ebster City; and
E a stb u rn , executive vice presid en t of
th e Iow a State B ank and T ru st Co. at
Fairfield.
The state banking board of w hich
th e su p erin ten d en t of banking is ch air
m an, acts in an advisory capacity con
cern ing all m atters p ertain in g to the
ban king departm ent. The dep artm en t
has supervision over all banks and
tru s t com panies incorporated un d er
Iow a law s and as well as sm all loan
com panies.
T he new board assum ed its duties
Ju ly 1st and w ill serve four years.
T here is no rem uneration.
Banker Becomes Treasurer
M arc H ickm an, a ssistan t cashier of
th e N ew ton N ational Bank, w as ap
pointed city tre a su re r by N ew ton
councilm en on Ju n e 23d to succeed
M. G. Addicks.
Mr. H ickm an’s appointm ent w as
voted unanim ously by th e council
a fte r Mr. A ddicks’ resignation had
been approved.
Mr. Addicks, w ho recently has
served as city tre a su re r for th e last 18
years, resigned since he w as recently
appointed Jasp er county tre a su re r by
th e board of supervisors to fill the
vacancy caused by the death of F. H.
McCarl.
The survey show ed th a t business
firms in the state used only half of the
“confirm ed open lines of cred it” m ain
tained for th e ir use on the books of
banks. A total of 26 b anks in the larg
er centers of the state rep orted th a t
th ey carried on th e ir books $24,578,460
in “open lines of cred it” offered to and
kept available for reg u lar borrow ers
for use as needed by them . Of th is
am ount $12,473,916 or 50.8 per cent
w as used.
The average n um ber of new loans
m ade per bank d uring th e six m onths
period u n d er review w as 896 and the
average size of loan w as $621.
The average num ber of loans re
new ed per bank w as 468 and the
average renew al w as for $722.
The average n um ber of new m o rt
gage loans m ade per bank w as 14 and
the average new m ortgage m ade w as
for $2,885.
Receives High Honor
Jo h n F. O’Neill, cashier of the F irst
T ru st and Savings B ank of A rm strong,
left recently for New B runsw ick, New
Jersey, w here he will atten d th e G rad
uate School of Banking.
He has attended the school th e past
tw o y ears and w ill be g raduated th is
year. Mr. O’Neill has learned th a t his
thesis received the aw ard and w ill be
placed in th e R utgers U niversity li
brary.
T his is the highest honor granted
by th e school. The subject of his
thesis w as “F a rm e rs’ O perating C hat
tels,” and dealt w ith the phase of
co u n try banking relative to financing
farm loans th ro u g h chattel m ortgages.
Former Banker Dies
A fter an illness of several days,
Joachim Kelling, pro m in en t farm er
and b an k er of Denver, died last m onth
in A llen M em orial H ospital, W aterloo.
F o r y ears Mr. K elling w as vice p res
ident and director of th e ban k in
D enver afte r his re tirem en t from
farm ing 26 y ears ago.
Wedding Date Announced
Iowa Bank Loans
T h irty p er cent of the banks in
Iow a m ade m ore th a n 270,000 loans
to taling $183,000,000 to business firms
and individuals th ro u g h o u t th e state
d u ring th e second half of 1940, accord
ing to the sem i-annual survey of b ank
lending activ ity m ade by th e research
council of th e A m erican B ankers As
sociation.
The A. B. A. loan survey w as p a r
ticipated in by 196 Iow a banks, or
30.2 p er cent of th e 648 banks in the
state.
Mr. and Mrs. George E. C lark of
Des Moines announce th e approaching
m arriage of th e ir daughter, M arjorie,
to George A. Miller, son of Mrs. George
E. M iller of Des Moines. The w edding
w ill take place Ju ly 26th.
Miss C lark attended D rake U niver
sity and w as grad u ated from the U ni
v ersity of Iowa. She is a m em ber of
K appa K appa Gamma sorority.
Mr. M iller attended D rake U niver
sity and Dowling College. He is em
ployed a t Iowa-Des Moines N ational
Bank.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19^1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Comparison in Acres Planted with Hybrid Seed Corn
1920
no hybrid corn
1940
m
i
ÉÉ
n
7,947,280 acres
Comparison of resources Bankers Trust Company
S S S $ S 4 , 700,000
v O w w w w w w *
"T
6th and Locust
Des Moines
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
23 , 399,000
52
•
Brenton Resigns Post
Several changes in th e official staff
and th e addition of tw o m em bers to
th e board of d irecto rs of N o rth w est
B ancorporation w ere announced by
J. C. Thom son, president, follow ing a
m eeting of th e board of d irectors
T hursday.
W. H. B ren to n resigned as vice
presid en t an d tre a s u re r of N o rth w est
B ancorporation effective Ju ly 1st. Mr.
B ren to n w ill be a t P ine R iver, M in
nesota u n til S eptem ber 1st, a t w hich
I O W A
N E W S
.
tim e he w ill re tu rn to his form er hom e
in Des Moines.
Calvin W. A urand, vice president
of M idland N ational B ank and T ru st
Co. since 1938, w as elected vice p resi
den t and tre a su re r of N o rthw est Bancorporation. H is resignation from th e
M idland N ational B ank and T ru st Co.
becam e effective Ju ly 1st.
R. L. Sm ith, a ssistan t vice p resident
of N orthw est B ancorporation, w as ad
vanced to th e position of vice p resi
dent.
Mr. B renton is th e p resident of the
follow ing six Iow a banks: Pow eshiek
County N ational Bank, G rinnell; B ren
ton S tate Bank, Dallas Center; Jeffer
son S tate Bank, Jefferson; Dallas Coun
ty State Bank, Adel; F irs t N ational
Bank, P erry; C entral Savings B ank
and T ru st Co., E m m etsburg.
On his re tu rn to Des Moines Mr.
B renton expects to devote his full tim e
to these banks and his extensive farm
holdings. H e is a d irector of th e IowaDes Moines N ational B ank b u t w ill not
be active in th e m anagem ent of th a t
bank.
U pon g rad u atin g from th e U niver
sity of M innesota, A urand came to the
M idland N ational B ank and T ru st Co.
in th e credit d ep artm en t in Septem ber,
1925. He w as elected a ssistan t cashier
in Ja n u a ry , 1933, and vice president
in 1938.
Dividend Declared
CONDENSED STATEMENT OF CONDITION
JUNE 30, 1941
A SSETS
C ash and D ue fro m B a n k s ......................................................................................................
L o a n s and D is c o u n ts ...............................................................................................................
U n ite d S ta te s G overn m en t B o n d s ......................................................................................
S ta te, C oun ty, an d M u n icip a l B o n d s .............................................................................
O ther B on d s and S e c u r itie s .................................................................................................
S to ck in F ed era l R eserve B a n k . . .1..................................................................................
B an k B u ild in g , F u rn itu re and F ix tu r e s ........................................................................
O th er A ss e ts ................................................................................................................................
§2,587,547.60
3,034,479.26
965,439.12
481,572.18
332,978.00
17,400.00
183,442.00
7,896.15
$7,610,754.31
L IA B IL IT IE S
C ap ital .....................................................................................................................$400,000.00
S u rp lu s .................................................................................................................. 180,000.00
U n d ivid ed P r o f i t s ...............................................................................................
18,335,10
R eserve fo r C o n tin g e n c ie s ...............................................................................
56,000.00
T o ta l C ap ital A c c o u n t....................................................................................................
R eserv e fo r T a x es and I n te r e s t...........................................................................................
O ther L ia b ilitie s ........................................................................................
D ep o sits .........................................................................................................................................
$
654,335.10
11,642.27
105.00
6,944,671.94
T he G rundy N ational B ank of
G rundy C enter w ill pay a 3 p er cent
dividend to its stockholders as th e ir
share of th e b a n k ’s earnings for the
first six m onths of this year. T his is
th e first cash dividend paid to the
stockholders since th e b an k organized
a little over seven years ago. On the
first of th is y ear each of th e stock
holders received a 100 p er cent stock
dividend. T his stock d istrib u tio n w as
m ade w hen th e ban k paid off a p re
ferred stock issue of $25,000 w hich w as
subscribed by th e F ederal R eserve
B ank w hen th e b ank w as organized.
T he p referred stock w as all converted
into com m on stock and it w as equi
tably d istrib u ted am ong th e common
stockholders. T he b an k has a capital
stock of $50,000. The 3 per cent cash
dividend distrib u tio n am ounts to
$1,500.
$7,610,754.31
A . G. Sam , P r esid en t
J . P . H a in e r, V ice P r e s id e n t
J . R . G raning, A ssista n t C ash ier
F ritz F ritzson , V ic e P r e s , an d C ashier
E . A . J o h n so n , A ss is ta n t C ashier
J. T . G rant, A ss is ta n t C ash ier
W . F . Cook, A u d ito r
M e m b e r F ed era l D e p o sit In su ra n c e C orporation
I
f
t
M
C
I N S I O U X C ITY
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19'il
Fromme Elected
Lloyd F rom m e of D avenport w as
recently appointed a ssistan t cashier of
the new ly organized N orthw est Dav
en port Bank.
Mr. F rom m e has had considerable
banking experience, as he served on
the staff of a D avenport b an k for
some tim e. In addition, he has been
connected w ith th e firm of L ay and
Powell, real estate insurance, and last
fall w as a candidate for county re
corder.
Vacations in Black Hills
Miss Carol M itchell, em ployee of the
Pom eroy S tate Bank, vacationed last
m onth at h er hom e in W essington,
South Dakota, and m ade a trip to the
Black H ills w hile there.
53
• IOWA
Rollins to Head Campaign
R ich ard R. Rollins, vice p resid en t
of th e B an k ers T ru s t Com pany, Des
Moines, has been nam ed gen eral c h a ir
m an of th e tw enty-fifth Des Moines
C om m unity C hest cam paign to be con
ducted n e x t fall.
Mr. R ollins is a m em ber of th e chest
board of directors, an d w as ch airm an
of th e 1936 cam paign executive com-
NEWS
•
w as called last m onth and H. E. Long
of W h itten w as elected vice p resident
of th e bank. At th is m eeting a n
n ouncem ent w as also m ade th a t th e
Longs and W. K. Bram w ell, E ldora
b anker, had purchased th e Jen sen in
terest.
Officers elected a t th e m eeting fol
low:
R alph K auffm an, president; W. K.
B ram w ell, ch airm an of th e board of
directors; C. F. Long, cashier; H. E.
Long, vice president; C. E. B arnes, as
sista n t cashier; K. J. Lyons, assistan t
cashier; L. L. Bixby, m anager Liscomb
office.
W h itten G eneral Company,
m anager W h itten office.
Reserve Members
A ccording to an announcem ent by
the F ed eral R eserve B ank of Chi
cago, th ree Iow a banks have recently
been adm itted to m em bership. T hey
are th e A uburn Savings Bank, A u
burn; S ecurity S tate Bank, Keota; and
th e Com m ercial Savings Bank, Lohrville.
R. R. R O L L IN S
m ittee. In addition, he has served
th e chest o rganization in vario u s o th er
capacities.
T he cam paign w ill provide funds
for appro x im ately 30 w elfare org an i
zations for 1942. T he goal w ill be de
term in ed by chest directors a fte r b u d
gets of m em ber agencies have been
considered.
The goal last y e a r w as $330,209. It
w as reached one day ahead of sched
ule.
Auto Accident Fatal
H a rry H. T u rn er, for m any y ears
engaged in th e b an k in g business in
E ldora a n d w ell know n in th e w estern
po rtio n of G rundy county, died a t the
M arshalltow n hospital last m o n th
from in ju ries he received in an au to
m obile accident a sh o rt distance n o rth
of M arshalltow n. H e w as 66 y ears
old and w as a lifelong re sid e n t of
H ard in county.
Bank Interests Sold
F ollow ing th e sale of th e M ajor G.
B. Je n se n in te re st in th e U nion W h it
te n State Savings Bank, U nion, a spe
cial m eeting of th e board of d irectors
Investment Service
T h e e x p e rie n c e o f sev en ty -sev en years
a n d im m e d ia te c o n ta c t w ith p rin c ip a l
cities m a k e th e services o f o u r B o n d
D e p a r tm e n t o f p a r tic u la r v a lu e to
c o rre s p o n d e n t b an k s.
In q u irie s b y te le p h o n e , w ire, o r m ail
are in v ited , a n d q u o ta tio n sh eets w ill
be m ailed o n req u est.
Telephone Franklin 6 8 0 0 —LD 92-93
Teletype CGO 987
BON D D EPA RTM EN T
The First National Bank
of Chicago
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19M
54
A T T H E I O W A J U N IO R B A N K E R S C O N V E N T IO N
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— A. S. Renaas,
D e co ra h ; M ary Carpenter, S ta te B a n k of F a y e tte ; Inez M. D aly,
A lta V is ta S ta te B a n k , a n d W. P. Ronan, a s s is ta n t c ash ie r, D e
co rah S ta te B an k . 2— H arold G. N ew m an, S to c k p o rt; M ildred
W. N ew m an, cash ie r, Io w a S ta te B a n k , S to c k p o rt; Rolland
Sw anson, U nion T ru s t C om pany, S tan w o o d , a n d Fred Cummins,
D ro v e rs N a tio n a l, C hicago. 3— E. A. Loyd, C lay C ounty N a
tio n a l, S p e n c er; Mrs. L. P. F itzgerald, F a rm e rs S ta te , M a rcu s;
L. P. F itzgerald , a s s is ta n t c ash ie r, F a rm e rs S ta te , M a rc u s; Mrs.
W. K. W iew el a n d W. K. W iew el, a s s is ta n t c ash ie r, F ir s t N a
tio n a l, F o n d a . 4— A. G. N elson, a s s is ta n t cash ie r, S e c u rity N a
tio n a l, Sioux C ity ; Mrs. N elson; R. W. L ew is, a s s is ta n t cash ie r,
S e c u rity N a tio n a l, Sioux C ity , a n d Mrs. L ew is. 5— R u ssell Horn,
D a lla s C ounty S ta te , A d el; Mrs. R ussell Horn; George N elson,
C e n tra l N a tio n a l, D es M oines; Doris Grimm, D allas C ounty
S ta te , A del, a n d Jerry Strathm an, C om m ercial S ta te B a n k , P o c a
h o n tas. 6— Ward M acfadden, S c a rb o ro u g h & C om pany, C hi
cago, a n d K atherine W elty, C e n tra l N a tio n a l B a n k , D es M oines.
7— R- G-. L exvold, a s s is ta n t c ash ie r, F a rm e rs T ru s t & S av in g s,
S p e n c er; In gelew B akow a n d Florence D oyle, F a rm e rs T ru s t &
S a v in g s, S pencer, a n d E rw in Jones, vice p re sid e n t, low a-D es
M oines N a tio n a l, D es M oines. 8— Mrs. W. L. B aggs an d W. L.
B aggs, a s s is ta n t c ash ie r, H a n c o c k C o u n ty N a tio n a l, G a rn e r; E.
C. B artik, a s s is ta n t c ash ie r, F ir s t S ta te , B r itt, a n d Mrs. E. C.
B artik. 9— P aul L. D ick, a s s is ta n t c ash ie r, E a rly S a v in g s B a n k ;
Don P runty, C e n tra l N a tio n a l, D es M oines; E. J. K nebel, c a s h
ier, C om m ercial T ru s t & S a v in g s, S to rm L a k e , a n d L. A. Tymeson, C om m ercial T ru s t & S a v in g s, S to rm L ak e . 10— Dale Sm ith,
m a n a g e r, tr a n s it d e p a rtm e n t, C e n tra l N a tio n a l, D es M oin es;
Mrs. D ale Sm ith, Mrs. Carl F. R essler, C larksville, an d Carl F.
R essler, Io w a S ta te B a n k , C lark sv ille. 11— B. J. Sm ith, a s s is t
a n t c ash ie r, Io w a S ta te B a n k , M o rn in g Sun, a n d Susan Sm ith
a n d Irene Rich, a s s is ta n t cash ie r, b o th o f th e Io w a S ta te B a n k ,
M o rn in g Sun.
Elected President
H.
Shoulberg has been elected pres
ident of th e F irst N ational B ank of
A kron, to fill th e vacancy caused by
th e death of F ra n k W akem an. Mr.
Shoulberg has been connected w ith
the F irs t N ational since 1905 w hen
he w as em ployed as bookkeeper, and
cashier of th e b ank from 1912 to 1921,
w hen he w as elected vice president
and m anaging officer, w hich office he
has held u n til th e election of p resi
dent at th is tim e.
T. L. B u rn ig h t w as elected vice
p resid en t of th e bank b u t w ill not be
an active officer.
Retired Banker Dies
E X P A N D IN G
THE
U SEFU LN ESS
O F O U T -O F -T O W N
Through many years The Northern
Trust Company has taken the time to
build close, friendly relationships with
its banker customers. It has also long
followed the practice of making avail
able to them facts and figures with
which to reinforce their own customer
service. Therefore, in addition to the
usual routine transactions, the cor-
BANKS
respondent who forms a connection
here benefits from our cooperation
with him in broadening his usefulness
to his customers and in making avail
able to his bank essential information
that is often not obtainable locally.
Your bank may find such a correspond
ent connection of helpful and prac
tical assistance. Inquiries are invited.
THE NORTHERN
TRUST COMPANY
50 SOUTH LA SALLE STREET
Member Federal Deposit Insurance Corporation
★
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19M
Louis B. B lanchard, 73, of Edgewood, retire d banker, died recently
afte r an illness of several m onths.
Mr. B lanchard had lived in Edgewood
since he w as 7 y ears old, and had con
ducted a bank in th a t com m unity for
m any years. He served as vice presi
dent of th e D yersville N ational B ank
for a sh o rt tim e, and in 1936 retired
from active business.
Secures New Position
R obert S. Nelson, form erly of W aterville, and a son of Mr. and Mrs. C. V.
Nelson, has secured a position w ith
th e B ank of A m erica, w ell know n
banking corporation of California. For
the p ast tw o y ears he has been located
a t W alford, Iowa, w here he has been
a ssistan t cashier of the b ank there.
Wins Prize
Mrs. Stanley A nderson of Toledo re
cently w on first prize in a dem o n stra
tion contest of a S u n stran d adding
m achine at a m eeting of the Ju n io r
B ankers A ssociation at Des Moines.
She received a prize of $30.
Mrs. A nderson is an em ployee of
th e n ational ban k at Toledo.
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56
Bankers of Iowa, Incorporated
A
N E W corporation of in te re st to
Iow a b a n k ers h as been form ed
recently, know n as B an k ers of Iowa,
Incorporated. T he object of th e cor
po ratio n is u n fo rm ity in exchange
charges and to reg u late th em in such
m an n e r as to keep such charges w ith in
a reasonable sphere. Officers of B ank
ers of Iowa, In corporated, are A. C.
T hornburg, president, president, Iowa
Falls S tate B ank; W. A. K neeland, vice
president, cashier, P ostville State
COMMERCIAL • CHECKING
Bank; and S. R. Torgeson, secretarytre a su rer, cashier, F a rm e rs & M er
ch an ts S tate Bank, Lake Mills.
T he general n a tu re of th e business
to be tran sacted and the p articu lar ob
jects and purposes of th e corporation,
as outlined in A rticle 4 of th e A rticles
of Incorporation, is as follows:
T o u n it e b a n k s a n d b a n k i n g a n d fin a n c ia l
in s tit u tio n s to p r o m o te g o o d w ill a n d g o o d
f e l l o w s h i p b e t w e e n o ff ic ia ls o r p r o p r ie t o r s
o f b a n k s a n d b a n k i n g a n d f in a n c ia l i n s t i
t u t io n s t h a t a r e m e m b e r s o f t h i s c o r p o r a
tio n ; to p r o v id e , r e g u l a t e a n d m a in t a in a
s u i t a b l e b u ild in g , r o o m o r r o o m s ( a s or
S A V I N G S
•
TRUS TS
Qualified
in every way
to serve as your
Chicago
c o rre sp o n d e n t
AMERICAN
NATIONAL
A fter paying a m em bership fee, each
b ank so doing w ill abide by th e follow
ing agreem ent as noted am ong others
in th e By-laws of th e C orporation:
BANK
A N D TRUST C O M P A N Y
LA SALLE STREET AT W A S H I N G T O N
M em ber Federal D ep o sit Insu ran ce C orporation
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19k!
w h e n t h e n e e d m a y a r i s e t h e r e f o r ) in th e
c i t y o f D e s M o in e s , I o w a , fo r t h e t r a n s a c
t io n o f t h e b u s i n e s s a n d a f f a ir s o f t h e c o r
p o r a t io n ; to e s t a b l i s h j u s t a n d e q u it a b le
p r in c ip le s in t h e b a n k i n g a n d f in a n c ia l
b u s in e s s a n d in c u s t o m a n d u s a g e a m o n g
b a n k e r s , t h e b a n k i n g a n d f in a n c ia l f r a t e r
n it y , a n d in b a n k i n g c ir c le s ; to e s t a b l i s h
a n d m a in t a in u n i f o r m i t y in r u le s , r e g u l a
t io n s a n d u s a g e in t h e b a n k i n g b u s i n e s s
( h e r e i n a f t e r c a lle d “b u s i n e s s ” ); to a d o p t,
a n d , i f n e e d b e, to c h a n g e s t a n d a r d s o f
c l a s s if i c a t io n in t h e b u s i n e s s ; to a c q u ir e ,
p r e s e r v e a n d d is s e m i n a t e u s e f u l in f o r m a
t io n c o n n e c t e d w i t h t h e b u s i n e s s t h r o u g h
o u t th e s ta te o f I o w a an d a n y o th er s ta te
o r c o u n t r y a s m a y b e d e s ir a b le o r a s m a y
p r o m o t e t h e p u r p o s e s o f t h i s o r g a n iz a t io n ;
a n d , g e n e r a l l y , w i t h o u t l i m i t a t i o n o f th e
a b o v e a n d fo r e g o in g p u rp o se s, to p ro m o te,
u n if y a n d c o o r d in a t e t h e b u s in e s s o f b a n k s ,
b a n k e r s a n d f in a n c ia l i n s t i t u t i o n s t h r o u g h
o u t t h e w o r ld a n d e s p e c i a l l y in t h e s t a t e
o f I o w a ; to in c r e a s e g o o d w i l l a n d a u g m e n t
t h e f a c i l i t i e s w i t h w h ic h s a id b u s i n e s s m a y
b e c o n d u c t e d ; to c o m m u n ic a t e w i t h b a n k s ,
b a n k e r s , f in a n c ia l i n s t i t u t i o n s , c h a m b e r s o f
c o m m e r c e , m e r c a n t ile a n d c o m m e r c i a l i n
s t i t u t i o n s a n d p u b lic b o d ie s t h r o u g h o u t th e
w o r ld to c o n c e r t a n d p r o m o t e m e a s u r e s fo r
th e p r o m o t io n a n d p r o t e c t io n o f s a id b u s i
n e s s a n d t h e p e r s o n s e n g a g e d t h e r e in ; to
s u b s c r ib e to a n d b e c o m e a m e m b e r o f, s u b
s id iz e a n d c o o p e r a t e w i t h a n y o t h e r a s s o
c ia t io n , w h e t h e r in c o r p o r a t e d o r n o t, w h o s e
o b j e c t s a r e , a l t o g e t h e r or in p a r t, s i m ila r
to t h o s e o f t h i s c o r p o r a t io n , a n d to p r o c u r e
f r o m a n d c o m m u n ic a t e to a n y s u c h a s s o
c ia t io n s u c h in f o r m a t io n a s m a y b e l i k e l y
to p r o m o t e o r f o r w a r d t h e o b j e c t s o f t h i s
c o r p o r a tio n '; t o c o n d u c t e d u c a t io n a l c a m
p a ig n s fo r t h e b e n e f it o f n o t o n ly it s m e m
b e r s a n d t h e o ffic e r s a n d s e r v a n t s t h e r e o f
b u t a ls o f o r t h e b e n e f it o f o t h e r b a n k s ,
b a n k e r s a n d f in a n c ia l i n s t i t u t i o n s ; a n d ,
w i t h o u t l i m i t a t i o n o f t h e g e n e r a l i t y o f th e
a b o v e a n d f o r e g o i n g p u r p o s e s , to do a n y
a n d a l l t h i n g s i n c id e n t a l to o r c o n s i s t e n t
w i t h t h e p u r p o s e s e x p r e s s e d in t h e s e A r t i
c le s o f I n c o r p o r a t io n .
S a id B a n k h e r e b y a g r e e s :
1. T o c h a r g e n o e x c h a n g e in e x c e s s o f
t e n c e n t s p e r h u n d r e d d o ll a r s o r f r a c t io n
t h e r e o f o n a n y c h e c k p r e s e n t e d b y m a il f o r
p a y m en t th ro u g h or b y a c o rresp o n d en t
b a n k ; it b e in g u n d e r sto o d a n d a g r e e d th a t
B a n k , a f o r e s a id , m a y , a t it s o p t io n , c h a r g e
a n e x c h a n g e le s s th a n th e a m o u n t a b o v e
s e t fo r th .
2. T o c h a r g e n o e x c h a n g e o n a n y c h e c k
o f o n e d o ll a r or l e s s p r e s e n t e d f o r p a y m e n t
b y m a il t h r o u g h o r b y a c o r r e s p o n d e n t
bank.
3. T o m a k e n o c h a r g e f o r e x c h a n g e in
e x c e s s o f o n e d o lla r , r e g a r d l e s s o f th e
a m o u n t o f s a id c h e c k , w h e n s a id c h e c k is
p r e s e n t e d b y m a il t h r o u g h o r b y a c o r
resp on d en t bank.
4. T o c h a r g e n o e x c h a n g e o n a n y c h e c k
d r a w n o n s u b s c r i b i n g B a n k , p r o v id e d th e
fir s t b a n k o r t r u s t c o m p a n y to w h ic h s a id
c h e c k is n e g o t i a t e d a n d w h ic h e n d o r s e s
s a id c h e c k is l o c a t e d w i t h i n t h e b o u n d a r ie s
o f th e s ta te o f I o w a a n d w ith in tw e n ty -fiv e
(2 5 ) m il e s b y t h e s h o r t e s t r o u t e b y p u b lic
r o a d a n d / o r p u b lic h i g h w a y f r o m t h e b a n k
e x e c u t in g th is a g r e e m e n t or w ith in su ch
d is t a n c e f r o m a n y o ffic e o f s u c h b a n k .
5. T o p a y liq u id a t e d d a m a g e s to C o r p o
r a t io n f o r e a c h i n t e n t i o n a l v i o l a t i o n b y
B a n k o f a n y o f t h e p r o v is io n s o f t h e p a r a
g r a p h s h e r e o f n u m b e r e d “ 1,” “2 ,” “ 3” a n d
“4” ; a n d it is a g r e e d b y a n d b e t w e e n B a n k
a n d C o r p o r a tio n t h a t t h e s u m o f O n e T h o u
s a n d D o lla r s ($ 1 ,0 0 0 .0 0 ) is t h e f a i r a n d r e a
s o n a b le d a m a g e t h a t w i l l b e s u f f e r e d b y
C o r p o r a t io n in t h e e v e n t o f s u c h v io la t io n ,
a s n e a r ly a s t h e s a m e m a y b e e s t im a t e d
a n d c a lc u la t e d , a n d s a id s u m is h e r e b y
e s t a b l i s h e d a s liq u id a t e d d a m a g e s f o r th e
p u r p o s e s e t f o r t h in t h i s p a r a g r a p h “5” o f
th is c o n tr a c t.
6. T o m a in t a in it s m e m b e r s h ip in C o r
p o r a t io n u n t i l J u l y 1, 1943, a n d a s lo n g
th e r e a fte r
as
B ank
m ak es
exch an ge
c h a r g e s f o r c h e c k s d r a w n u p o n it, a n d to
p a y a l l d u e s , m e m b e r s h ip f e e s a n d a s s e s s
m e n t s le v ie d , u p o n d e m a n d , a n d t o h o n o r
a n y s i g h t d r a f t d r a w n t h e r e f o r b y th e
t r e a s u r e r o f C o r p o r a tio n .
S a id C o r p o r a t io n a g r e e s ;
57
-•
A. T o p a y a n y b a n k or t r u s t c o m p a n y
h a v i n g i t s p r in c ip a l o ffic e o r p la c e o f b u s i
n e s s w i t h i n t h e s t a t e o f I o w a a n y s u m i t is
r e q u ir e d to p a y b y w a y o f e x c h a n g e
c h a r g ed or e x a c te d b y a n y b a n k or tr u st
c o m p a n y t h a t is a m e m b e r o f s u b s c r i b i n g
C o r p o r a t io n in e x c e s s o f t h e s e c h a r g e s s e t
f o r t h in p a r a g r a p h s n u m b e r e d “ 1,” “ 2,” , “ 3”
a n d “4” h e r e o f ; a n d s u c h b a n k o r f in a n c ia l
in s tit u tio n p a y in g s u c h e x c h a n g e c h a r g e
m a y b r i n g s u it , p r o v id e d c la im is file d
t h e r e f o r w i t h C o r p o r a t io n o r i t s t r e a s u r e r
w ith in s ix t y d a y s a ft e r s u c h e x c e s s c h a r g e
h as been m ad e b y su ch m em b er bank, as a
t h ir d p a r t y b e n e f ic ia r y o f t h i s c o n t r a c t ,
a g a i n s t s u b s c r i b i n g C o r p o r a tio n , to e n f o r c e
i t s r i g h t s u n d e r t h i s p a r a g r a p h “A ” o f t h is
a g reem en t.
B . T o file w i t h t h e s e c r e t a r y o f t h e I o w a
B a n k e r s A s s o c ia tio n a lis t o f th e m e m b er s
o f s a id C o r p o r a tio n , a n d to n o t i f y s a id s e c
r e ta r y o f I o w a B a n k e r s A ss o c ia tio n o f a n y
c h a n g e s o r a d d it io n s in s a id m e m b e r s h ip
w i t h i n t h i r t y (3 0 ) d a y s a f t e r t h e e f f e c t iv e
d a t e o f s u c h c h a n g e o r a d d it io n .
IOWA
NEWS
—
in Service,” w ith a p icture and brief
w ord about each of those nam ed. In
th is colum n recen tly w as th e an
n ouncem ent th a t F ra n k Jacobs is a
p riv ate in th e h e ad q u arters detach
m ent, 7th Corps A rea, at F o rt Omaha.
F ra n k Jacobs is th e son of W alter
Jacobs, cashier of th e L ake City State
Bank.
Ira Stanley Dies
F u n e ra l services w ere held last
m o n th in Sioux Falls for Ira C. S tan
ley, 56, w ho passed aw ay in a Chicago
hospital after a brief illness. B urial
was in a Sioux Falls cem etery.
Mr. Stanley w as a form er E stherville resident. W hile living th ere he
w as cashier in th e R hode’s Bank. He
left E sth erv ille in 1918 for Chicago
and opened a farm and loan office.
Heads Group Nine
Ju lia n F rost, cashier of th e D ecatur
County S tate Bank, Leon, w as elected
ch airm an of Group N ine of th e Iow a
B ankers A ssociation, at th e recen t
convention.
Quarterly Meeting
T he Iow a A ssociation of B ank A udi
to rs and C om ptrollers held its tw elfth
q u a rte rly m eeting a t F o rt Dodge on
Ju n e 19. One h u n d re d n in eteen Iow a
b an k executives and Iow a b an k staff
people registered. M any atten d ed from
Des M oines b u t n early every g eograph
ical cen ter in th e n o rth e rn tw o-thirds
of th e sta te w as represented. I t w as
a splendid m eeting presided over by
R. L. Carson, au d ito r of th e Iowa-Des
M oines N ational B ank & T ru s t Co.,
an d w ho is p resid en t of th e A uditors
A ssociation th is year. J. J. B uechner,
a ssista n t au d ito r of th e F irs t N ational
Bank, Chicago, gave th e address of
th e evening follow ed by a v ery active
and helpful ro u n d tab le afterw ards.
P re sid e n t H. R. Young responded to
th e address of w elcom e w hich w as
given by Judge D w ight G. R ider of
F o rt Dodge.
County Meeting
The W eb ster C ounty B an k ers As
sociation held its a n n u a l picnic re
cently. All th e b an k s of W ebster
county closed for th e afternoon. The
picnic w as held a t F o rt Dodge. All
directo rs an d th e ir w ives w ere like
w ise invited. M ore th a n 200 attended.
The p resid en t of th e W ebster C ounty
B an k ers A ssociation is R. C. Allen,
m an ag er of th e office of th e Som ers
Savings B ank, a t C allender. T he sec
re ta ry of th e W eb ster C ounty B an k ers
A ssociation is F. C aratoni, m an ag er
of th e office of th e B urnside Savings
Bank, at Lehigh.
(ommercefrust (ompaiiy
18-1
Established 1865
KANSAS CITY, MISSOURI
Member Federal Reserve System
Statem ent of Condition at Close of Business June 30, 1941
RESOURCES
C ash and D u e from B a n k s ..................................................................... $83,528,534.35
U . S. O b lig a tio n s, D ir e c t
and F u lly G u a r a n te e d ..................... 52,415,725.64
135,944,259.99
S ta te , M u n ic ip a l and F e d e ra l L a n d B an k B o n d s ..................... 23,523,404.16
B a n k ...........................................................
270,000.00
S e c u r it ie s .................................................................
14,546,150.58
38,339,554.74
D is c o u n t s ...............................................................................................................
45,181,723.29
B a n k P r e m is e s and O th er R e a l E s t a t e O w n e d ...........................................................
2,533,337.29
S to ck o f F e d e r a l R e se r v e
O th er
Bonds
Loans
and
and
C u sto m er s’ L ia b ilit y A c c o u n t L e tte r s o f C r e d it.......................................................
A ccru ed
I n te r e s t
O v e rd ra fts
17,000.00
R e c e iv a b le ...............................................................................................
313,131.15
....................................................................................................................................
5,669.24
O th er R e so u r c e s
.........................................................................................................................
T o ta l
.............................................................................................................................. $222,336,148.81
R esources
1,473.11
L IA B IL IT IE S
D e p o s it s
.........................................................................................................................................
C a p ita l
............................................................................................................... $ 6,000,000.00
S u rp lu s
................................................................................................................
U n d iv id e d
R e se r v e
P ro fits
..............................................................
for D iv id e n d s
$209,286,887.15
3,000,000.00
3,888,338.62
12,888,338.62
D e c la r e d ......................................................................................
60,000.00
L ia b ilit y A c c o u n t
L e tte r s of C r e d it...............................................................................
17,000.00
Men in Service
A ccru ed I n te r e s t,
T a x e s and E x p e n s e ..........................................................................
79,038.01
N ew spapers in th e sm aller cities are
doing a g ran d job on keeping th e ir
read ers inform ed as to local young
m en w ho have en tered th e service
of U ncle Sam in th e p re se n t em er
gency. The Graphic and N ew s, of Lake
City, ru n s a colum n it calls “Our Men
O th er
L ia b ilit ie s
.............................................................................................................
4,885.03
T o ta l
L ia b ilit ie s
................................................................................................................... $222,336,148.81
T h e a b o v e s ta te m e n t is co rrect.
E . P . W h e a t, C ash ier.
M e m b er F e d e r a l D e p o s it In su r a n c e
C orp oration .
Northwestern Banker
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Federal Reserve Bank of St. Louis
July 19bl
58
—•
Injured in Auto Mishap
V. O. Stafford, p resid en t of th e new ly
organized R u th v en S tate B ank, w as
seriously in ju red in an auto crash last
m onth n e a r M apleton. Mr. Stafford
w as tak en to St. Jo se p h ’s H ospital in
Sioux City, w here he w as found to be
suffering from a bro k en knee and a
b ro k en jaw.
New Officers Elected
Sioux C ounty B ankers Association
m et in convention a t Ire ton and
m
m
IOWA
NEWS
•-
elected officers for the com ing year.
H erm an M oret of O range City w as
elected president, Louis Ju n g ers of
H ospers, vice president, and Dewey
K uiken of M aurice, secretary-treas
urer.
Banker Recovers
Sam uel Mosby, recently retu rn ed
from a hospital at La Crosse, Wis.,
w h ere he subm itted to an operation,
has m ade a steady recovery and is now
able to spend a p a rt of each day at
his position as vice p resid en t of the
Ö
u
m
OTTUMWA,
IOWA
Member of Federal Reserve System
E lgin State Bank. He is still w eak
from th e illness and operation b u t is
gaining steadily.
Mr. Mosby has m issed v ery few
days at th e bank, being first w ith the
E lgin Savings B ank from the tim e of
its organization and continuing w ith
the E lgin S tate B ank w hen the tw o
banks m erged.
Changes at Estherville
Lloyd Jensen, w ho has been em
ployed at th e Iow a T ru st and Savings
B ank of E sth erv ille for the p ast th ree
years, has resigned his position and
left last m onth for San Francisco
w here he will serve as teller in the
B ank of A m erica. He began his new
duties on J u s t 1st.
Je n se n ’s position has been tak en by
W illiam R. W agner of Mason City.
His banking experience includes w ork
w ith th e N o rthw est Savings B ank at
M ason City p rio r to its consolidation
w ith th e F irs t N ational B ank of th a t
place.
Statem ent of Condition as of June 30, 1941
M cCandless Appointed
R E SO U R C ES
L oans
B ank
and
D i s c o u n t s ................................................................................... $ 2 , 1 8 7 ,6 2 1 . 3 6
B u ild in g
...................................................................................................
1 0 7 , $ 0 0 .0 0
F u r n itu r e a n d F ix t u r e s a n d S a f e t y D e p o s it s V a u lt s . . .
1 8 ,1 1 2 .0 1
O th e r
R e a l E s t a t e ..........................................................................................
7 , 0 0 0 .0 0
S t o c k i n F e d e r a l R e s e r v e B a n k ...........................................................
1 3 ,5 0 0 .0 0
O v e r d r a fts
U.
S.
...........................................................................................................
B o n d s ....................................................................$
M u n ic ip a l
B onds
D ue
1 9 4 1 - 1 9 4 6 ..............
O t h e r M a r k e t a b l e B o n d s .....................................
C a sh
and
E x c h a n g e ................................................
1 , 7 6 5 .1 9
1 7 1 , 7 5 1 .0 0
1 ,5 0 2 ,3 8 6 . 1 6
4 6 7 ,0 8 4 .4 1
2 , 5 7 7 ,7 3 9 . 8 5
4 ,7 1 8 ,9 6 1 . 4 2
$ 7 , 0 5 4 ,4 5 9 . 9 8
R obert M cCandless of W ashington,
D. C., a form er Sheldon resident, has
been appointed to th e position of
D eputy C om ptroller of the C urrency,
succeeding E ugene H. Gough, w ho
has been w ith th e office of the Comp
tro ller since 1912, and has been Dep
u ty C om ptroller for th e p ast nine
years. He w ill re tire on Ju ly 6, w hen
Mr. M cCandless w ill assum e his new
duties.
Mr. M cCandless has been chief of
the Division of In solvent B anks and
the new position will include this
division.
L IA B IL IT IE S
C a p it a l ( C o m m o n )
S u r p lu s
........................................................................................$
3 0 0 , 0 0 0 .0 0
....................................................................................................................
2 0 0 , 0 0 0 .0 0
U n d i v i d e d P r o f i t s a n d R e s e r v e s ( N e t ) ........................................
9 2 , 4 6 9 .8 5
D iv id e n d P a y a b le J u ly
1, 1 9 4 1 ...........................................................
1 2 ,0 0 0 .0 0
.................................................................................................................
6 ,4 4 9 ,9 9 0 . 1 3
D e p o s its
$ 7 , 0 5 4 ,4 5 9 . 9 8
O F F IC E R S
F R A N K V O N S C H R A D E R , C hairm an o f B oard and P r esid en t
H . L . P O L L A R D , V ice P r esid en t
C. P . G L E N N , A s s is ta n t C ashier
R. W . F U N K , V ic e P r esid en t
W . C. M IL L E R , A s s is ta n t C ashier
M A X V O N S C H R A D E R , C ashier
F R E D D IM M IT T , A s s is ta n t C ashier
C. G. M E R R IL L , T ru st Officer
M e m b e r F ed era l D e p o sit In su ra n c e C orporation
T h e d e p o sits o f e v e ry d e p o sitor in th is
b a n k are in su re d up to $5,000.00
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July Í9JÍ
A ccepts New Position
Phillip Orr, form erly of th e Dallas
C ounty State B ank in Adel, assum ed
duties Ju ly 1 as teller in th e F irst N a
tional B ank of P erry , according to an
announcem ent by C. S. Johnson.
Mr. O rr succeeds H. V. Sm ith, for
m erly of Rippey, w ho has accepted a
position as teller in the B ank of A m er
ica, Los Angeles, Calif.
5 Per Cent Dividend Paid
T he C entral State B ank and T ru st
Com pany of E lk ad er paid a 5 p er cent
dividend on th e balance due on all
tru s t certificates on M onday, Ju n e 23.
Charles Kelly, exam iner in charge,
announced th e dividend.
59
L. F. P in gel, president, F irs t State
Bank, Sioux Rapids, rep o rts business
in his com m unity satisfactory and the
bank enjoying a good steady dem and
for local loans. His daughter, C ath
erine, g raduated from G rinnell this
year and accepted a position w ith the
B ankers Life, Des Moines.
IOWA NEWS
FRO M
H ERE
AND
TH ERE
By J . A . Sarazen, A sso ciate Editor
J. A . S A R A Z E N
J. LU D E M A N N , vice president,
expanded th e ir various in terests and
. Peoples Savings Bank, W ellsburg, th e sale of th is stock elim inates some
of th e accum ulated responsibilities.
has tw o d au g h ters living in H aw aii.
One recen tly accepted a gov ern m en t
position th e re and he also has a m a r
ried d au g h ter living in H aw aii.
J
V isiting th e P eterson State Bank we
h ard ly recognized it as the sam e bank
we visited a year ago. E xtensive re
m odeling and the changing of th e
nam e from th e F irst N ational B ank a
few m onths ago had us fooled for a
m inute. A big neon sign has been
added on th e corner and th e installa-
The H u dson State Bank recen tly
com pleted red eco ratin g w alls and ceil
ings and renew ed th e floor by re-sand
ing and re-varn ish in g them .
D elbert H in sch, a ssista n t cashier,
E m m et C ounty S tate B ank, E stherville, and Mrs. H insch are spending a
few w eeks v acationing in South Caro
lina and he w ill re tu rn to th e b an k
sh o rtly a fte r th e first of July.
In order to m ore effectively cooper
ate w ith farm er custom ers, th e Iow a
T ru st & Savings B ank, E sth erv ille,
added Gordon N icholas to th e p erso n
nel as m an ag er of th e ag ricu ltu ral
dep artm en t. He m ajored in ag ricu l
tu re a t Ames, g rad u atin g th is spring.
A ccording to K. J. M cDonald, p resi
dent, a re p o rt from F ra n k W a rn e r
show s th a t eleven o th er b an k s in th e
sta te have outside rep resen tativ es.
Mr. M cDonald believes th a t if we are
faced w ith a period of inflation th a t it
is an excellent idea to keep a close tab
on loans rig h t now.
Also added to th e perso n n el of th is
ban k a few w eeks ago w as W . R.
W agner, as teller. H is fa th e r w as
form erly p resid en t of th e N. W. Sav
ings Bank, M ason City.
T his b an k has show n a steady
gro w th in deposits, h aving an increase
from $110,000 in 1934 to $945,277 on
A pril 4th of th is year. T otal footings
on th is date w ere $1,025,200.
A. W. Jones, presid en t, and A. O.
A nderson, cashier, of th e Sac City
S tate Bank, recen tly sold th e ir in te r
est in th e Corn B elt F in an ce C orpora
tion, Sac City. O rganized 12 y ears
ago by th ese m en to finance sm all
loans, w ith an o riginal capital of $10,000, th e to tal capital stru c tu re has
grow n to $47,409 an d total footings of
$117,402.
D uring th ese y ears both m en have
CLOSE
TO BOTH
INDUSTRY AND A G R ICU LTU R E
Located
in the heart of the Union Stock
Y a rd s and C h ic a g o ’s g reat C entral M anu
facturing District, this 73 y e a r old bank has
develo ped
facilities through
farmer and
serving
both
m a n u f a c t u r e r t ha t m a k e it
ex cep tio n ally qualified
to act
as C h ica g o
correspondent for m iddle western bankers.
LIVE STOCK
LBANK
OF C H IC A G O
N AT I O N A
Established 1868
UNION
STOCK
YARDS
M e m b e r F e d e r a l D e p o s it In su ra n c e C o r p o r a t io n
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19M
60
Bankers Trust Installs New Fixtures
C o n sid erab le in te r io r re m o d e lin g h a s re c e n tly b e en co m p le te d b y th e B a n k e rs T ru s t C om pany, D es M oines. T he le f t of
th e tw o v iew s ab o v e show s th e fo rm e r g rills f r o n tin g th e t e l l e r s ’ cages rem oved, a n d now re p la c e d b y lo w -ty p e fix tu re s.
L o w -ty p e c o u n te rs h a v e also b e en in s ta lle d in th e sa v in g s d e p a rtm e n t, as illu s tr a te d in th e p ic tu re a t th e rig h t.
ti o n of V e n e tia n b lin d s h e lp s th e a p
p e a ra n c e .
On th e in te rio r we found new low
type counters h ad replaced th e high
grill w ork, th e floors tiled and fluores
cent lig h ts installed, an d to com plete
th e job th e w alls and ceilings have
been n eatly redecorated.
W e m et G. D. Setzler, th e new assist
a n t cashier, w ho cam e dow n here a
few days ago from th e F irs t State
B ank, Graceville, M innesota, w here he
The Kind of Service
You Want
D ay in and day out we strive to give our corre
spondent banks the kind of service that enables
them to do a better job for their customers and
themselves.
To this end we maintain facilities and services
second to none in our territory.
W e invite more banks to enjoy the highly satis
factory service which this institution offers to
correspondents.
SECURITY NATIONAL BANK
Sioux City, Iowa
Member Federal Deposit Insurance Corporation
has been located for th e last four
years. H e succeeds E. R. N orton, w ho
passed aw ay M ay 13th.
The an n u al m eeting of th e C entral
Savings B ank & T ru st Company, Emm etsburg, w as held Ju n e 17th. Offi
cers re-elected w ere H arold B renton,
president; Geo. K elly, vice president;
W m . Zunkel, vice presid en t and cash
ier, and W . F. E gan, a ssistan t cashier.
D irectors re-elected in addition to
those m entioned above w ere H . M.
H u ston, Guy R. Cam pbell and W. P.
W ilson.
Paul M. Shain, form erly m anager,
W aukee office, B renton State B ank of
Dallas C enter, has been tra n sfe rre d
here as teller.
The F irst N ational Bank, Sioux Cen
ter, now has footings of over th e one
m illion m ark. T he last tim e th is fig
u re w as reached w as in 1920.
The F a rm e rs Savings Bank, Fostoria, w ill celebrate its 25th a n n iv er
sary th is fall. T he stockholders have
n ev er been asked to pay an assess
m ent, n o r depositors asked for w aiv
ers, and th e b ank w as released from
S. F. I l l w ith th e natio n al banks back
in 1933. T he population of th e tow n is
125 souls and footings of th e b ank
am o u n t to $371,000. H. A. O’Farrell is
th e genial cashier.
R ecent statem en t of th e D ickinson
Savings Bank, Milford, list
checking deposits a t $329,800 and tim e
County
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19M
61
WHERE T O , S O L D I E R ?
T hey gave him a pass today, fo r th e
week-end.
The w orld is h is— a t least as f a r
as th e n e a re st tow n. No m ore K.P.,
no m ore drill, no m ore form atio n s
till M onday. He can be John A m eri
can, his own m aster, having a good
tim e. T h a t pass is his open sesame.
B u t is it?
W here will he and his buddies go
in th a t tow n overru n w ith soldiers?
W here will they eat and sleep? W hat
can th e com m unity do to give them
relax atio n and e n te rta in m e n t?
One of th e fo rg o tten problem s in
any high-speed scheme of natio n al
defense is how to provide fo r th e
soldier and sailor off duty.
W ith in the cam ps and naval s ta
tions th e services them selves have
excellent facilities. B u t in the s u r
rounding cities and tow ns th e prob
lem is acute and difficult.
race and creed have been fo rg o tte n ;
lesser d istinctions have been subor
d inated to th e idea of united service.
M any of the new er arm y camps
a re located f a r from the la rg e r cen
te rs. Into tow ns of 1,000 to 5,000
population m ay come as m any as
3,000 men on a single evening.
W here are they to go? How is the
com m unity to provide fo r them , to
see th a t they get th e wholesome
food and e n tertain m en t th a t all of
us would like them to have?
How can you help? The U. S. O.
is ra isin g approxim ately eleven m il
lion dollars to finance its p rogram
of leisure-tim e aid to the men in
service. T his is your opportunity
to do your b it fo r national defense.
Give generously to the U. S. O.
To m eet th is em ergency all th e “se r
vice agencies” of th e last w ar have
joined forces. The Y. M. C. A., the
N ational Catholic Com m unity S er
vice, the Salvation A rm y, th e Y. W.
C. A., th e Jew ish W elfare B oard
and th e N ational T ravelers Aid
A ssociation have combined to form
th e U nited Service O rganizations—
known as th e U. S. O. Differences of
H ow will the m oney he used? In
m ain ta in in g 360 U. S. O. clubs. The
governm ent is building th e club
houses them selves. W hat is required
now is money to operate them.
How and where shall you give?
To th e local com m ittee th a t has
charge of your c ity ’s p a rt in th is
national drive. No m a tte r how much
or how little you feel you can give,
send it today to your local chairm an
or to N ational U. S. O. H eadquarters,
E m p ire S tate B uilding, New York.
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19^1
62
A N N O U N C IN G
. . . our 37th con secu tive sem iannual
dividend July 1st, 1941. Current rate
3%. N o w seven th largest “F ed eral”
in the U. S. A.
RESOURCES $14,000,000
T w in City F e d e r a l
S a v in g s and Loan A ssociation
801 Marquette Ave., Minneapolis
Established 1923
HOM E
F ederal Savings
AND LOAN ASSOCIATION
OF DES MOINES
— our Federally Insured up to
$5.000 savings accounts are
the solution to your invest
ment and trust problems.
Current dividend 3J4 percent.
Sta tem en t on request.
414 Sixth Avenue
Des M oines, Iowa
I o w a ’s L a r g e st B u s in e s s T r a in in g S ch ool
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. 0. FENTON, President
American
institute of Business
DES MOINES
10th and Grand
Tel. 4-4203
m oney of only $86,200. Loans and dis
counts am ount to $360,000, w hich
w ould indicate a h ealth y local dem and.
The State B ank of V inton celebrated
its 50th a n n iv ersary recently. Depos
its are $1,600,000 and total footings
over $1,753,000.
L oren Dorr, form erly connected w ith
the F arm ers State Bank, M arcus, has
joined the F irs t T ru st & Savings Bank,
Alta, as teller. Two o ther additions to
the staff here are H arold B ell, book
keeper, and B ettie A nderson, stenog
rap h er.
John R oghair, Jr., a ssistan t cashier,
N o rth w estern S tate Bank, Orange
City, resigned his position Ju n e 24th,
to accept a position w ith a California
bank. He had been associated w ith
Orange City banks for the last 15
years.
The Sac County B ankers A ssociation
held th e ir an n u al m eeting at Sac City,
Ju n e 12th. J. P. Jones, cashier, Citi
zens Savings Bank, Sac City, w as
elected president, to succeed Sam
H ahne, president, State B ank of Schaller. C. W . Shaw , cashier, W all Lake
Savings Bank, w as elected vice p resi
dent, and F erd B. H an sen , a ssistan t
cashier, Citizens Savings Bank, Sac
City, secretary and treasu rer.
M iss M arion Loom is, assistan t cash
ier of T he Hom e T ru st & Savings
B ank, Osage, died a t h e r hom e in
Osage on Ju n e 20th, afte r an illness of
th re e m onths. She had been con
nected w ith th e b ank in various ca
pacities for th irte e n years.
Not m any ban k ers can spell th e ir
last nam e eith er forw ard or backw ards
and get th e sam e pronunciation. Frank
Kanak, cashier, U nited States Bank,
Cedar Rapids, can do ju st that.
E. E. M anuel, p resid en t of the
George State Bank, w as recen tly ap
pointed to th e executive council of the
In d ep en d en t B ankers A ssociation. The
purpose of th e organization, he says,
is to m ain tain and foster independent
ban k ing in th e U nited States and to
oppose b ranch banking in any of its
form s.
D ale Sm ith, a ssistan t cashier, Tipton
State Bank, w as m arried last m onth
to Miss Thelm a Byers, stenographer,
F irs t S tate Bank, W est B ranch. A fter
spending a m o n th ’s honeym oon in
New Y ork City and th e east, th e happy
couple w ill re tu rn to th e ir new ly
erected hom e in Tipton.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
County Bankers Meeting
The an n u al Jackson and C linton
County B ankers A ssociation banquet
and dance w as held at the M aquoketa
co u n try club last m onth. Jackson
county beef w as served at th e 6:30
dinner.
D. D. F u ller w as to astm aster for the
event and presen ted W. L. W hite of
Spragueville, presid en t of th e Jackson
County B ankers A ssociation w ho gave
the address of welcome. R esponse
w as given by J. Yvo F loerchinger,
presid en t of th e C linton County B ank
ers Association. T he personnel of the
various banks in th e tw o counties w as
p resen ted in groups rep resen tin g th eir
own individual banks. M. O. Sagers
gave a sh o rt talk on fellow ship and
good will.
Special guests a t the d in n er w ere
F re d Cum m ings of th e D rovers N a
tional B ank of Chicago, Mr. and Mrs.
Carl T ro u t of th e Livestock N ational
B ank in Chicago, Ira W rig h t and A rt
Donhowe, of th e C entral N ational
B ank & T ru st Com pany of Des
Moines, and Mr. and Mrs. C. H. S teph
enson of th e B ankers T ru st Company
of Des Moines.
T he program w as u n d er th e direc
tion of Lew is Lein, com m ittee ch air
man.
Plan for Bank Abandoned
P lans for opening a new b an k in
V inton th is fall have been abandoned
by th e board of directors and subscrib
ers have been released from th e ir
pledges to take stock, according to let
ters sent them by th e presid en t of th e
board, J. H. Milroy.
In ab ility to obtain a desirable loca
tion and u n settled w orld conditions
w ere given as reasons for th e b o ard ’s
decision, b u t as th e c h a rte r is good for
50 years, subscribers w ere told the
plans m ay be resum ed later.
The c h a rte r for the bank, to be
know n as th e F a rm e rs and M erchants
B ank of V inton, w as g ran ted this
spring by th e S tate B anking D ep art
m ent and had th e approval of the
Federal D eposit In su ran ce C orpora
tion.
County Bankers Meet
M em bers of th e H um boldt C ounty
B ankers A ssociation held th e ir an n u al
picnic at th e co u n try club n ear H um
boldt last m onth.
The picnic w as atten d ed by 65
ban k ers and th e ir wives, directors and
th e ir w ives and em ployees. Tow ns
rep resen ted w ere Renw ick, Bode, Gil
m ore City, Thor, L iverm ore and H u m
boldt.
The group m et at 12 o’clock noon
and lunch w as served a t one o’clock.
A social tim e followed.
63
Officers of th e A ssociation are: p re s
ident, B. B. W atson of H um boldt; sec
reta ry , J. F. H am m of L iverm ore, and
tre a su re r, Ed. E ich ler of H um boldt.
Former Atlantic Man Dies
A rnold H ansen, 34, fo rm er em ployee
of th e W h itn ey Loan & T ru st Com
p an y B ank of A tlantic, died last m onth
at a Los A ngeles h ospital a fte r u n d e r
going a th ird o peration for a b rain
tum or. Mr. H ansen h ad been in fail
ing h ealth for some tim e and in a c rit
ical condition for m an y w eeks.
New Cashier
George D. S etzler of Graceville,
M innesota, has sta rte d in his new
position as a ssista n t cashier of th e
P eterso n S tate Bank.
Mr. S etzler replaces E. R. N orton,
w ho died in May.
The bank, w hich received its state
c h a rte r th is spring, has been com
pletely rem odeled.
Deposits Doubled
D eposits in Iow a c h a rte red b anks
doubled d u rin g th e eight y ears he has
been in office, D. W. Bates, S tate Su
p erin te n d e n t of B anking, announced
recently.
“Iow a’s b an k s,” B ates said in a sta te
m en t review ing recovery of ban k in g
du rin g his ad m in istratio n , “had de
posits of $240,650,164 in Ja n u a ry , 1933.
In th e y e a r preceding th e y had lost
$117,233,124 in deposits.
“Since th a t low period, deposits have
increased to $484,766,223, or by $244,166,059.
The increase in deposits,
therefo re, exceeds by n early th re e
and one-half m illion dollars th e to tal
deposits a t th e beginning of 1933.”
B ates, w ho left office Ju n e 30, to be
succeeded by M elvin W. E llis (Rep.,
C harles C ity), com piled a re p o rt on th e
w ork of th e d e p artm e n t as a prelude
to tu rn in g over his job to Ellis.
“I ask th e b an k in g fra te rn ity of
Iow a,” B ates said, “to give Mr. E llis
th e sam e cooperation, loyalty and
su p p o rt th e y have given m e an d all
m y em ployes.”
New Bank Office
A nnou n cem en t w as m ade by C. E.
Baylor, p resid en t of th e F irs t T ru st
and U nion Savings B ank, Sigourney,
th a t th e b an k has established a new
b ank in g office a t K inross, by p erm is
sion of th e F ed eral D eposit In su ran ce
C orporation and th e State B anking
D epartm ent.
T he F irs t T ru st and U nion Savings
B ank has p u rch ased th e assets and as
sum ed th e deposit liability of th e K in
ross Savings Bank, w hich th e re b y has
su rre n d ered its c h a rte r and ceased to
do business.
T he Sigourney bank plans to give
th e K inross com m unity a com plete
ban k ing service in every way, and
Miss Genevieve F isch er is th e office
m anager. Miss F isch er has been con
nected w ith the K inross Savings B ank
for th e past 38 years.
T here w as no suspension of business
and no inconvenience to th e custom ers
w ith the establishm ent of th e new
office.
D eposits w ill be insured in the
new office bank up to $5,000 for each
person by th e F ed eral Deposit In su r
ance C orporation.
FLOORS
Rubber Tile
Linoleum
Asphalt
Parquet
WALLS
Sheet Rubber or Tile
Panel Board or Tile
Porcelain Tile
CEILINGS
Officers Elected
The an n u al stockholders’ m eeting of
th e F arm ers Savings B ank of V ictor
w as held last m onth and officers for
th e ensuing y ear elected as follows:
H en ry W ahl, president; H. H. Schwiebert, vice president; H. W. C hittenden,
cashier, and W. R. C hittenden, assist
a n t cashier. D irectors are E. R. Bow
m an, H a rry M uller and Roy H. Park.
Acoustic Tile
Acoustic Panel
A Complete Remodeling Service
W RITE FOR ESTIMATE
H. B. BUCKHAM
AND
Reduces Interest Rate
In com m on w ith th e v ast m ajority
of com m ercial banks all over the coun
try , the F arm ers and M erchants Sav
ings B ank of M anchester on Ju ly 1st
reduced the in te re st rate on savings
accounts and certificates of deposit
from 2 p er cent to IV2 p er cent per
annum . Tim e certificates now o u t
stan d ing w ill continue to draw 2 per
cent u n til th e ir m atu rity . T his deci
sion w as reached at a m eeting of the
directors of th e in stitu tio n held last
m onth.
COMPANY
DES MOINES, IO W A
New Closing Hour
On Ju n e 21st, both D enison banks
began to close prom ptly at 12 noon
every Saturday, officials of th e C raw
ford C ounty T ru st and Savings Bank
and th e F irs t N ational announced last
m onth.
“It has become necessary for the
b anks to stay w ith in th e m axim um of
40 h o urs a w eek for each em ploye as
set out by th e h o u r and wage act, or
else pay tim e and one-half for tim e
over 40 hours p er w eek,” th ey said.
“W e sincerely hope th a t th e public
w ill m ake it a point to come to th e
b an k s earlier on S aturdays for change
and o ther m atters w hich usually are
tra n sa cted on S aturday afternoons.”
KOCH BROTHERS
P R I M E R S - BO OK Bin DER S - O F F I C E O U T F I T T E R S
S T R TI On E R S - B USInESS IDRCHIDES
G R fl lì D
nV E
nU E
HT
FOURTH
P referred b y pro g ressive
bankers and tr u s t officers
because e ve ry program is
•
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s p i r i n
D
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g
W E S S L IN G . P R E S ID E N T
•
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o d e r n
Ü A i <zA/[oLn£,±, { J a v a
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 1941
64
—
Attends School
Donald T. L aw ler, cashier of th e
Iow a T ru st and Savings B ank of Estherville, left recen tly for New Bruswick, New Jersey, w h ere he w ill a t
tend th e G raduate School of B anking.
Jo h n F. O’Neill, cashier of th e F irs t
T ru st and Savings B ank of A rm strong,
w ho has atten d ed th e G raduate School
du rin g th e p ast tw o years, w ill also
a tte n d and w ill g rad u ate th is year.
New Bank Building
P lans have been com pleted and w ork
sta rte d on a new building for th e H artw ick State Bank. The new building
w ill be tw enty-five feet w ide and
thirty -six feet long. It w ill be of hol
low tile construction, w ith double
walls, the o u ter w all being of h ard
bu rn ed face tile. The in te rio r will
have nuw ood ceilings and colored plas
te r sidewalls. The floors w ill be cov
ered w ith a sp h alt tile. The v au lt will
be co nstructed of reinforced concrete
sixteen inches thick. The p re se n t bank
B an k H elp W a n te d
M a n y a ttr a c tiv e p o s itio n s n ow op en from
C h ica g o to P a c ific C oast for p o s tin g m a ch in e
op erators, s ten o g ra p h e rs, te lle r s and a s s is ta n t
ca sh ier s. C oun try bank e x p e r ie n c e p referred .
W rite for a p p lic a tio n b lan k .
T H E C H A R L E S E . W A L T E R S CO.
P. O. R ox ISIS, O m aha, N e b r a sk a
Banks Sold or Bought!
IOWA
NEWS
•-
fixtures w ill be used in the new build
ing b u t the counter w ill be rem odeled
into th e new type low counter. New
type fluorescent lighting fixtures are
to be used for light. Besides the vault
the building w ill have a directo rs’
room, w ork room, officers’ room and
lobby.
Bank Changes Hands
Lloyd L. Gibson, Shell Rock in su r
ance m an and banker, purchased con
tro l of th e Security State B ank in th a t
com m unity and took over the m anage
m en t of th e business last m onth. Gib
son p urchased th e stock of W. S. Rob
inson, w ho had operated th e bank
since last Septem ber.
Gibson is th e th ird m an to control
the b ank since its opening A pril 23,
1940. M arvin L eritz, the first cashier
and m ajority stockholder a t the tim e
of th e opening, sold his in terest to
Robinson after only a few m onths con
nection w ith th e in stitution. J. F.
Iw ert, w ho has served as cashier since
R obinson took control, w ill rem ain in
th a t capacity according to presen t
plans of th e stockholders.
Prominent Man Dies
Jo h n Adam s M agoun, form er Sioux
county tre a su re r for 10 years and for
m any y ears p resident of the Sioux N a
tional Bank, died at his hom e in Sioux
City last m onth after a long sickness.
He w as 79 y ears old.
quietly, quickly and in a personal manner
JAY A. WELCH
Haddam, Kansas
“35 years P ractical B a n kin g
E xperience.”
OES MOINES BUILDING-LOAN &
SAYINGS ASSOCIATION
O ld est a n d L a rg e s t
in Des M oines
411 6th Ave.
Dial 4-7119
ELMER E. M ILLER
Pres, and Sec.
HUBERT E. JAM ES
A sst. Sec.
M em ber Federal Hom e Loan Bank System
YOUR STATE BANKERS A SSO CIATIO N
O FFICIA L SA FE, V A U L T AN D
TIMELOCK EXPERTS
F. E. DAVENPORT & CO.
OM AHA
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19JÎ
Junior Bankers Elect Officers
. L. B. Cox, a ssistan t cashier of th e
F irs t S tate B ank at Belmond, last
m o n th w as elected p resid en t of the
Iow a Ju n io r B ankers A ssociation, a
new organization com posed of b ank
em ployes below th e level of cashier.
The election of Cox followed action
by th e group to form a p erm an en t or
ganization. Such action w as recom
m ended in a rep o rt by Leo P. Regan
of th e Iowa-Des Moines N ational B ank
and T ru st Com pany in Des Moines.
A lvin Renaas, Decorah, w as nam ed
vice president, and R obert G. Lexvold,
Spencer, secretary and treasu rer. Offi
cers will serve a term of one year.
Follow ing are the group chairm en
nam ed:
H. C. Linduski, Sioux City; A. A.
G erken, F o rt Dodge; E. B. W ilkinson,
M ason City; Don C. W itt, Oelwein; J.
H. P ullm an, Jr., Sidney; K enneth G rif
fith, Des Moines; V. Spaulding Miller,
W aterloo; L. C. Rum m ells, W e s t
B ranch; Deane Sm ith, Creston; H arold
G. H argis, Centerville, and R ichard J.
H am m on, Fairfield.
Becomes General Manager
The F ederal hom e loan bank board
announced recently th a t Oscar K reutz,
form er ch airm an of the review com
m ittee, has been appointed general
m anager of the F ederal Savings and
L oan Insu ran ce C orporation, succeed
ing N ugent Fallon, w ho resigned to
become presid en t of th e F ed eral Home
Loan B ank of N ew York.
K reutz had been in the savings and
loan business in Sioux City, Iowa, and
w as secretary of the Iow a Building
Loan League before becom ing director
of th e F ederal H om e Loan B ank of
Des Moines in 1932.
He w as appointed first vice p resi
dent of th e F ederal H om e Loan B ank
of Chicago in 1934 and sho rtly a fte r
w ard w ent to W ashington.
Bank Elects Officer
At a d irecto rs’ m eeting last m onth
J. F. Schafer w as elected executive
vice p resident of th e F irs t S tate B ank
of Coon Rapids.
Mr. Schafer, w ho has been w ith th e
bank here for several w eeks, is an
experienced b an k er and form erly w as
exam iner for th e F ederal Deposit In
surance C orporation.
Elected to New Position
H en ry L ovett, form erly of the F irst
N ational B ank of Fairfield, has been
elected p resid en t of th e F irs t G ranite
City N ational B ank of G ranite City,
Illinois. Mr. L ovett left th e local bank
on F e b ru a ry 1st, to become executive
vice p resid en t of th e Illinois in stitu
tion.
Bank Interior Improved
The in terio r of the L au ren s State
B ank w as rem odeled recently w ith the
installation of low density hoard p an
els on w alls and ceiling.
In addition to providing an a ttra c
tive appearance, th e change serves to
soundproof th e room, elim inating u n
necessary noise.
A ccepts New Position
Miss L avina Adam s of Logan, w ho
has been em ployed for th e p ast th ree
y ears as a dictaphone operator in the
social w elfare office at Council Bluffs,
has accepted a position as secretary in
th e U nited States N ational B ank at
Omaha.
65
•
New Fixtures Installed
A set of new fixtures has been in
stalled in th e L one T ree Savings B ank
w hich th e b an k recen tly p u rch ased at
Des Moines. Since last D ecem ber’s
fire th e folks in th e b an k have been
w o rk in g u n d e r difficulties w ith some
m ak esh ift co u n ters and desks, so th e
new in stallatio n w ill doubtless be
g re a tly app reciated by those w orking
there.
Resigns Bank Post
P au l E arp , w ho has been associated
w ith th e S tate B ank of A llison for the
p ast tw o years, recen tly resigned his
post th e re to accept a position as su
p e rin te n d e n t of th e L aP rairie H igh
School in Illinois. Mr. E a rp form erly
left th is position to go into b an k w ork.
Receive Diplomas
C om m encem ent exercises w ere held
in New B runsw ick, N. J., for 179
grad u ates of th e G raduate School of
B anking, educational arm of th e
A m erican B ankers A ssociation a t R u t
gers U n iv ersity devoted to advanced
education in b an k in g for b an k officers.
The g rad u ates of th e class of 1941
are executives of b an k s located in 31
states. T hey w ere aw arded th e ir di
plom as for th re e y ears of atten d an ce
a t th e G raduate School’s su m m er ses
sions a t R utgers, tw o y ears of ex ten
sion study, and p re p a ra tio n of theses
on specialized phases of b an k in g and
finance. T he diplom as w ere aw arded
by Dr. Lew is E. Pierson, h o n o rary
ch airm an of th e Irv in g T ru st Com
pany, N ew York, and ch airm an of th e
G. S. B. board of regents.
Follow ing th e p recedent established
by th e g ra d u a tin g classes of previous
years, th e class of 1941 co n trib u ted a
gift of m oney to th e R utg ers U n iv er
sity L ib rary . T his y e a r’s gift exceeded
$ 1 , 100 .
Dr. Oliver C. Carm ichael, chancellor
of V anderbilt U niversity, N ashville,
Tennessee, w as th e com m encem ent
speaker.
In th e g rad u atin g class from Iow a
w ere Jo h n F. O’Neill, F irs t T ru s t &
Savings B ank, A rm strong; an d C.
G lenn Rye, W aterloo. M innesota had
th re e in th e class: S. J. Kryzzo, Inona
N ational Savings Bank; H. C. Soderm an, F irs t T ru st Co., St. Paul; an d D.
C. Stockm an, N ational B ank of Com
m erce, M ankato.
IO W A
NEWS
•
of th e bank, payable A ugust 1, 1941, to
stockholders of record at th e close of
business Ju ly 11, 1941.
A . I. B. Convention
The 40th an n u al convention of the
A m erican In stitu te of B anking w ill be
held a t New Orleans, Louisiana, Ju n e
8-12, 1942, it is announced by George
T. Newell, A. I. B. presid en t and vice
p resid en t of the M anufacturers T ru st
Company, New York, N. Y.
T he A m erican In stitu te of B anking
is th e educational section of th e A m er
ican B ankers Association. More th an
40,000 bank em ployees in In stitu te
ch ap ters and study groups in 390
cities th ro u g h o u t th e co u n try follow
courses of stu d y in bank organization
and operation, law, economics, ac
counting, m oney and banking, credit
ad m inistration, b an k adm inistration,
investm ents, and tru sts.
general d istrib u tio n to th e public, ac
cording to an announcem ent m ade by
George W. Lee, head of th e com pany’s
Com m ercial Check Sales D epartm ent.
The booklet, w hich com prises a total
of ten pages and is w ell illu strated
w ith photographs, charts, and linedraw ings, reduces to its fundam ental
principles the ro u tin e of purchasing
supplies and paying for them . It is
said to form an especially useful guide
to new business and is expected to be
in w ide dem and am ong established
com m ercial concerns. The booklet is
now ready for general d istrib u tio n and
w ill be sen t w ithout charge to anyone
w ho subm its a req u est to th e A dvertis
ing D epartm ent of The Todd Company,
R ochester, New York.
Poetic License
New Booklet
A poet m ailed an effusion entitled
“W hy Do I Live,” to a lite ra ry review .
The editor re tu rn e d th e poem w ith th e
follow ing note: “You live because you
d id n ’t dare b ring it in yourself!”
“D isbursem ent Procedure Sim pli
fied,” a revision of “M odern A ccounts
P ayable,” one of th e m ost popular pub
lications produced by The Todd Com
p any of R ochester, New York, in re
cent years, is now being released for
Teacher: “Now, Jo hnny, tell th e
class w hy we talk about th e ‘wisdom
of the serp en t.’ ”
Jo h n n y (prom ptly): “Because you
can ’t pull a sn ak e’s leg.”
tfndtx Vo ¿Advertisers
Iv
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 l l i e d M u t u a l C a s u a l t y C o m p a n y ..........
A. 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 l . B a n k a n d T r u s t C o .....
Koch
67
25
31
62
56
B ro th ers
.......................................................
II
B a n k e r s T r u s t C o m p a n y ............................ 50-5 1
H . B. B u c k h a m a n d C o m p a n y .................... 63
G eorge L aM o n te an d
L essing A d v e rtisin g
Live S to ck N a tio n a l
L ive S to ck N a tio n a l
Live S to ck N a tio n a l
S o n ...................................
C o m p a n y .......................
B an k — C h icag o . . . .
B a n k — O m a h a ..........
B a n k —- S i o u x C i t y .
n
M e r c h a n t s M u t u a l B o n d i n g C o m p a n y . . . 24
M e r c h a n t s N a t i o n a l B a n k .................................
2
M in n eap o lis-M o lin e P o w e r Im p le m e n t
C o m p a n y ...................................................................... 44
M o r t g a g e I n v e s t m e n t C o r p o r a t i o n ............. 28
IV
N o r t h e r n T r u s t C o m p a n y — C h i c a g o . . . . 54
N o r t h w e s t e r n N a t l . B a n k a n d T r u s t Co. 42
O
F . E . D a v e n p o r t a n d C o m p a n y ............. 37-6 4
D es M o in es B u ild in g , L o a n a n d S a v in g s
A s s o c i a t i o n ............................................................ 64
D r o v e r s N a t i o n a l B a n k ...................................... 48
O m a h a N a t i o n a l B a n k ........................................
E
P h i l a d e l p h i a N a t i o n a l B a n k ...........................
P u b l i c N a t i o n a l B a n k o f N e w Y o r k ..........
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 . . 25
E p p l e y H o t e l s C o m p a n y ................................... 24
F
19
P
33
31
<1
Q u a i l a n d C o m p a n y ................................................ 28
25
30
53
36
52
32
S
S e c u r i t y N a t i o n a l B a n k ...................................... 60
S h a w , M c D e r m o t t a n d S p a r k s ....................... 30
T
T w i n C i t y F e d e r a l S a v i n g s a n d L o a n . . 62
G
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 ............... 26
11
Chase National Dividend
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 . . 25
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 . . . 62
H o m e I n s u r a n c e C o m p a n y ..............................
6
T he Chase N ational B ank on Ju n e
25 declared a sem i-annual dividend of
70 cents p er sh are on th e capital stock
I o w a D e s M o i n e s N a t l . B a n k a n d T r u s t 68
J
J a m i e s o n a n d C o m p a n y ...................................... 31
X
IT
U nion
U nited
U nited
U n ited
B a n k a n d T r u s t C o ................................
S e r v i c e O r g a n i z a t i o n .........................
S tates C heck B ook C om pany. . . .
S t a t e s N a t i o n a l B a n k .........................
58
61
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34
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C h a r l e s E . W a l t e r s C o m p a n y .......................
J a y A. W ^ e l c h ............................................................
W e s s l i n g S e r v i c e s ..................................................
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ..........
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
5
62
59
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40
M
C
C e n tra l N atl. B a n k a n d T r u s t C o m p a n y
3
C h a s e N a t i o n a l B a n k ......................................
4
C i t y N a t i o n a l B a n k a n d T r u s t C o m p a n y 45
C o m m e r c e T r u s t C o m p a n y .................
57
C o m m e r c i a l I n v e s t m e n t T r u s t , I n c ....... 29
C o n tin e n ta l Illin o is N a tio n a l B a n k a n d
T r u s t C o ............................................................... 46
C o n t i n e n t a l N a t i o n a l B a n k ....................... 39
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 C o ..........
F e d e r a l H o m e L o a n B a n k o f D es M oines
F i r s t N a t i o n a l B a n k o f 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 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 ..................
63
id
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July 19'rl
66
In
th e
DIRECTORS' R o o m
Time 1000
Tweet! Tweet!
Policem an: “You say you saw the
accident, sir? W h at w as th e nu m b er
of th e car th a t knocked th e m an
dow n?”
A ctuary: “I ’m afraid I ’ve forgotten
it. B ut I rem em b er th a t if it w ere
m ultiplied by itself, th e cube root of
th e p roduct w ould be equal to th e sum
of th e digits rev ersed .”
A m o to rist crashed in to a telephone
pole. W ire, pole and ev ery th in g came
dow n aro u n d his ears. He w as found
unconscious in th e w reckage, b u t as he
w as being u n tan g led he came to,
reached out feebly, fingered a w ire and
m u rm ured, “T h an k heaven, th e y ’ve
given me a harp!”
Viewpoint
-•Friend (v isiting hospital p atien t):
“Do you know, old m an, th a t’s a swell
looking n u rse y o u ’ve got!”
Patient: “I h a d n ’t noticed.”
Friend: “Good Lord! I had no idea
you w ere th a t sick!”
That's Diffefent
“I don’t like y o u r in v itin g th a t chap
to dinner. He used to kiss you before
we w ere m arried .”
“W ell, so did you.”
“Yes, b u t I ’ve g o tten over it, and
m aybe he h a sn ’t!”
Gone to Hell
“Say, pop.”
“Yes, son?”
“I took a w alk th ro u g h the cem etery
today and I read the inscriptions on
the tom bstones.”
“W ell, w h at about it? ”
“Gee, pop, w here are all th e w icked
people b u ried ?”
“H ow did you stop yo u r husband
staying out late a t th e club?” “W hen
he came in late I called out, “Is th a t
you, Jack ?” “H ow did th a t stop him ?”
“My h u sb an d ’s nam e is Bill!”
O r Mottled
Foresight
“Is th is th e hosiery d ep artm en t?”
asked a w om an’s voice over th e phone.
“Yes,” relied th e w eary saleslady.
“H ave you any flesh-colored hose in
stock?”
“C ertainly, m adam . W h at color—
pink, yellow, or black?”
A young bride w alked into a drug
store and approached a clerk tim idly.
“The baby tonic you advertise. Does
it really m ake babies bigger and
stro n g er?” “We sell a lot of it and
w e’ve never had a com plaint,” replied
the druggist. “W ell, I ’ll tak e a b ottle,”
said th e bride after a m om ent and
w ent out.
In five m inutes she w as back. She
got th e d ruggist into a corner and
w hispered, “I forgot to ask about th is
baby tonic,” she said u n d er h er
breath. “W ho tak es it—me or m y h u s
band?”
Gnats or Nits
Happy Thought
A pproaching th e d ru g clerk th e
sw eet young th in g chirped: “Gimme a
nickel’s w o rth of insect pow der.”
“W hy, m adam ,” p ro tested th e clerk,
“I can h ard ly afford to w rap up th a t
sm all am o u n t.”
T ilting h er nose an o th er several de
grees, and gazing a t th e clerk w ith
scorn, th e gal clicked: “W ho said a n y
th in g about w rap p in g it up? H ere,
m an, ju s t blow it dow n m y back!”
The newly-weds had ju st got off th e ir
train.
“John, dear,” said th e bride, “le t’s
try to m ake th e people th in k w e’ve
been m arried a long tim e.”
“All right, honey,” w as th e answ er,
“you c arry th e suitcase.”
Rushed
Joe: “A re you doing m uch in y o u r
business now ?”
H arry : “I should say so! W hy, we
are so busy th a t we em ploy a m an to
in su lt new custom ers.”
i 00 Per Cent
Mrs.: “I can ’t th in k , for th e life of
me, John, w here th a t boy of ours gets
his tem per. T hey can ’t say it w as
from m e.”
Mr.: “T hey certain ly can ’t, m y dear
—y o u ’ve still got yours!”
Business Is Business
Wife: “W hen is th a t fo rtu n e teller
dow nstairs going to pay his re n t? ”
Landlord: “I don’t know .”
“Did you ask h im ?”
“Sure, b u t he said it w ould cost me
a dollar to find out.”
Northwestern Banker
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 19bl
Shrew - - d
A tram p, com ing dow n a co u n try
road in E ngland, stopped a m om ent in
m editation before a sign on w hich w as
w ritten : “George an d th e D ragon.”
He th e n entered th e ta v e rn to w hich
th e sign w as affixed and asked for th e
landlady. “Noble lady,” he began,
“have you a m eal and some old clothes
to spare for a poor, h u n g ry m an?”
“Not for the likes of you. Now go!”
she said, sternly. Then, seeing he de
sired to get an o th er w ord w ith her,
“W ell?” “T hen please, m a’am, could
I speak to G eorge?”
Eighty Proof
A bout five in th e m orning th e good
w ife w as aw akened by a pounding on
th e fro n t door. She w en t to th e w in
dow and called: “W h a t’s th e m a tte r? ”
“I ’ve got B en,” a voice replied. “H e’s
d ru n k again.” “Are you su re?” “No,
I ’m not positive, b u t h e’s been c a rry
ing a m anhole cover aro u n d for the
p ast tw o hours and sw ears h e ’s going
to play it on th e phonograph.”
W hat's in a Name?
Half Dressed
H otel Guest: “Please send up a fulllength m irro r.”
Clerk: “B ut th e re ’s a half length m ir
ro r in y o u r room already.”
H otel Guest: “Yes. A nd tw ice I ’ve
gone out w ith o u t m y tro u sers.”
Toothsome
An old gentlem an dropped som e
th in g on th e floor of th e th e a tre and
w as m aking a g reat fuss try in g to re
cover it. F in ally a lady n ear him asked
w h at he h ad lost. “A chocolate cara
m el,” he replied. “All th a t fuss over a
piece of candy?” said th e lady in a dis
gusted tone. “Yes,” said th e m an, “My
teeth are in it!”
Sambo w en t to his parson one day
and said, “Pahson, w ill yo’ all p ray fo’
m y floatin’ kidney n ex t S unday?”
“W ell, Sam bo,” said th e preacher, “I ’d
be glad to do an y th in g for you, b u t do
you th in k th a t th a t’s a p roper th in g to
p ray for in ch u rch ?” “W ell, pahson,
Ah th o u g h t you p rayed fo’ so m eth in ’
like th a t las’ Sunday. You prayed long
and h a rd for th e loose livers.”
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Federal Reserve Bank of St. Louis
DESIGNED
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