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JULY
1942

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.... . . . . . . . . . „ „ ■ ■ i

J. O. M IL S T E N
B elfield
P re s id e n t, N orth D a k o ta B an k ers
A sso c ia tio n

H. N. TH O M SO N
P re s id e n t,

P resh o
S outh D a k o ta
A sso c ia tio n

B ankers

yiCTORY
BU Y

U N IT E D
STA TES

yiAR
BONDS
AND

STAMPS


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M IN N E S O T A C O N V E N T IO N
Page 13

PROGRAM

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,HE Merchants National Bank, located in one of
America's great grain centers, offers outstanding
service in the handling of grain items. The speed with
which such transactions are carried out is becoming
increasingly important.
Avail yourself of the Merchants National's service.

A CEDAR R A P ID S BA N K

CEDAR

RADIOS

J ù ,

SERVICING A LL IOWA*

MERCHANTS

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NATIONAL BANK
OFFICERS

?F.

er

'¡/Il I

Mill ,

.•»Il J| m l' !•. I •!
KB !■if ¡llJI'V, .

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.■/A

J ames E. H amilton, Chairman
S. E. Coquillette, President
H. N. B oyson, Vice President
Roy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice President
F red W. S mith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , Asst. Cashier
L. W. B roulik, Asst. Cashier
P eter B ailey, Asst. Cashier
R. D. B rown, Asst. Cashier
O. A. K earney, Asst. Cashier
S tanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building Manager

Cedar R apids
Member Federal

Io w a

Deposit Insurance Corporation

N o rth w e ste rn B an k er, p u b lish e d m o n th ly by th e D e P u y P u b lish in g C om pany, a t 527_7th S tre e t, D es M oines, Iow a.
S u b sc rip tio n , 35c p e r copy, $3.00 p e r y ear. E n te re d a s sec o n d c la ss m a tte r a t th e D es M o in es p o st office.


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Invisible Strength through Industrial Teamwork

STRONG as they look, dams are subject to constant seep­
age that sets in to m o tio n the d estru ctiv e forces of

I NSURANCE

corrosion. But research undertaken by plastic and paint in­

aids In du strial Team w ork

dustries revealed that phenolic resin, added to paint, im­

Itself an industrial power,
Insurance re-invigorates
industries weakened by
unexpected mishaps. It
sponsors inspection, and
p reven tion ; in su ran ce
reserve dollars widely in­
vested in all industry be­
come bone and muscle to
the ramparts of production.

measurably strengthens surface resistance against water
attacks. Thus, through Industrial Teamwork, engineering
projects are safeguarded and the priceless advantage of
power is kept intact. Insurance, the industry that protects
other industries, works to keep IndustrialTeamwork effective.

&THE H O M E *
NE W Y O R K


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t

4

C U W

CHECK PAPER

Just a s a crest or m onogram on the fam ily
china and plate individualize a tab le setting
— so d o es the La Monte m ethod of m aking
the trade mark or other identifying d esign
of a corporation or bank part of the check
paper itself add prestige and advertising
v a lu e to checks. » » Such individualized
c h e c k s a r e SAFER, to o — for th e S a fe ty
Paper on w hich they are m ade is in every
c a se a "special run"— every sh eet of w hich
is reserved for a g iven bank or corporation
and released only to the lithographer or
printer w hich that bank or corporation d es­
ign ates. » » W hen you u se La M onte Safety
Paper yo u join the ranks of the largest and
most successful organizations of their kind
in the world. For more than 75% of Ameri­
ca's lea d in g banks, a s w ell a s outstanding
corporations from coast to coast are regular
users of La M onte Safety Paper. » » Your
lithographer or printer w ill b e g la d to sh ow
y o u h ow your ow n trade mark can be
incorporated in the paper itself — or write
us direct if y o u prefer.

lABIITEA^PAPEI

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4

JULY

no^m w e

/

tern

19 4 2
FO R T Y -S E V E N T H Y E A R

NUM BER 660

Oldest Financial Journal West of the Mississippi River

CLIFFO RD DE PUY
Publisher
R A L P H W. M O O R H E A D
Associate Publisher
H EN RY H. H A Y N E S
Editor
527 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

N EW Y O R K O FFICE
Frank P. Syms
Vice President
505 Fifth Ave,
Suite 1202
Telephone MUrray Hill 2-0326

IN THIS ISSUE
Editorials
6

Across the Desk from the Publisher

Feature A rticles
Frontispiece ............................ ....,,...........................................................................................
How Much Would You Loan to Elmer Blurp?.............................................................
Recreation in the Black H ills..............................................................................................
News and Views......................................................................................... Clifford De Puy
The Minnesota Convention Program.................................................................................
Things You Want to Know About Regulation W............................. Paul C. Hodge
South Dakota Meeting Well Attended...............................................................................
Legal Department— A Dispute of Boundry Line...........................................................
Milsten Heads North Dakota Bankers............................................ ..................................

9
10
11
12
13
14
15
16
18

M IN N E A P O L IS , OFFICE
Jos, A , Sarazen
Associate Editor
Telephone Hyland 0575

insurance
How Life Insurance Meets War Problems

A sa V. Call 19

Bonds and Investments
The Month’s Market Maneuvers___ .__ ________ _____ _____ .James H. Clarke 23

State Banking News

CONVENTION CALENDAR
F in a n c ia l
A d v e rtis e rs
A sso c ia tio n —
C hicago, O c to b er 26-28, E d g e w a te r
B each H o tel.
N a tio n a l C onference on W a rtim e F i­
n a n c e — B o o k -C ad illac H o te l, D e ­
tro it, S e p te m b e r 27-30.

ST ATE M EE TIN G S
M in n e s o ta A n n u al C o n v en tio n — D u lu th ,
J u ly 8-10, H o te l D u lu th .
Io w a J u n io r B an k e rs — D es M oines,
S e p te m b e r 6-9.
Io w a A n n u al C o n v en tio n — D es M oines,
S e p te m b e r 6-9.
N e b ra sk a A n n u al C o n v en tio n — O m aha,
H o te l F o n ta n e lle — D a te to be de­
cided.


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Minnesota News .......................................
With the Colors in Minnesota......
Twin City N ew s................. ...............
South Dakota News.............. ....................
North Dakota N ew s...............................
Nebraska News ........................................
Omaha Clearings ...........................
Lincoln Locals .................................
Iowa News .................................................
With the Colors from Iowa..........
Iowa News from Here and There

......................................... 29
..... .................
32

James M. Sutherland 35
.........................................
....................
..........................................
.....................................
..........................................
..........................................
.........................................
...J . A. “Joe” Sarazen

39
41
43
45
47
49
52
60

The Directors* Room
A Few Short Stories to Make You Laugh-------------------------------------------- ------- 66

6

Across the Desk
From the Publisher
*

M any banks now
have farm m an­
agers who help
th e ir farm er custom ers in solving th eir farm problem s and also
advising them about needed loans in the opera­
tion of th eir farm s.
This is a step in the rig h t direction th a t has
proven m ost beneficial to the farm ers and to the
bankers.
C. W. Bailey, president of the F irs t N ational
B ank of Clarksville, Tennessee, and chairm an of
the A. B. A. N ational Food fo r Freedom Com­
m ittee, in a recent address s a id :

How "Farm Managers"
In Country Banks Help
Farmers and Bankers

“ In many well managed country banks, serv­
ing areas that are preponderantly agricultural,
the employment of what are termed ‘outside men ’
to extend the lending activities of the bank in an
intelligent and practical way, has proven both
popular and successful. Well organized agricul­
tural credit departments of this type have now
been set up in more than 2,000 banks, where men
are employed for part or full time, and the work
and accomplishments of some of these specialists
have been outstanding.
“ The field of research affords an avenue of
much interest and profit to the forward looking
country banker, and the support of the Food-forFreedom program.”
These farm m anagers in country banks have
done a helpful and constructive piece of w ork
and th e ir efforts should be of such a ch aracter
th a t th ey will “ ca rry o v er” a fte r the w ar is fin­
ished and thus be of added benefit to farm ers
an d bankers.
Mr. B ailey also em phasized this point when he
said, “ And if, as a result of the efforts p u t fo rth

Northwestern Banker July 1942

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by the country banker, in the perform ance of
this d uty w hich seems to be so clearly his own,
th ere should develop some b e tte r m anaged and
more prosperous farm s and farm ers, equipped to
function more effectively now, and to produce
capital in the period follow ing the close of this
w ar, it will be some com pensation to him to re al­
ize th a t his neighborhood is sounder and b e tte r
in a business w ay because he got out and did w hat
he should have been doing all the tim e .”
We quite agree th a t this new dep artm en t w hich
is helping farm custom ers is som ething -which
bankers “ should have been doing all the time”
b u t which the present F oor for Freedom p ro ­
gram b rought forcibly to th e ir atten tio n and
therefore should re su lt in much good on both
sides of the counter.

*

>

Reduce Top
There is h ard ly a bankHeavy Mortgages ing offlciaI> either in a

state banking dep artm en t
or the federal governm ent, who is not these days
advocating th a t banks check over th e ir assets
and see th a t they are in excellent shape to w ith ­
stand anything which m ay be ahead of us.
J u s t recently W illiam R. W hite, su p erin ten d ­
ent of banks of New York, told the m em bers of
the New Y ork S tate B ankers Association, th a t
the “ balance of this y ear can furnish an oppor­
tune tim e for the elim ination of sub-standard
assets. P a rtic u la rly every effort should be made
to obtain a reduction of top-heavy m o rtg ag es.”
A stro n g position m ust be m aintained by the
banks d uring this period and reduction of m o rt­
gages which are too heavy is one w ay to accom­
plish this purpose.

*

The earnings, expenses,
Com pare Your
profits and investm ents
Bank Ratios With
fo r 1941 of 545 banks in
These Figures
the H aw keye state were
analyzed recently by the D epartm ent of B an k ­
ing and the percentages in the follow ing 7 classi­
fications will prove interesting, we are sure, to
N o r t h w e s t e r n B a n k e r readers.

These figures are as fo llo w s:

“ Service and All Other Income”
U nder P a ra g ra p th 6 Showing “ P er Cent of
Income to Gross E a rn in g s” was as follows:
Kesources
1£
from
Í C
C (

((
C (
(c

U nder $200,000
$ 200,000 to $! 300,000
{ {
300,000 to
400,000
((
400,000 to
600,000
i c
600,000 to
800,000
C c
800,000 to 1,000,000
c c
1,000,000 to 3,000,000
Ci
3,000,000 to 5,000,000
over 5,000,000

16.81%
17.41%
15.82%
19.06%
16.70%
18.72%
17.01%
17.65%
13.44%

1. Per Cent of Income to Total Resources
All Interest Received........ .............. 2.64%
Exchange and Collection ...................... 17
Trust Department ......................
.03
Service Income
.......................
23
All Other Income___ ___________
.11
You will notice in this com parison th a t the
c c

Total Gross Income...................... 3.18%
2. Per Cent of Expense to Total Resources
All Salaries .............................................94%
Interest on Deposits. ......................
.51
All Taxes ...... .........................................19
All Other Expense__ _____________ 51
Total OperatingExpense ............ 2.15%
3. Per Cent of Profit to Total Resources
Net Operating Profit....................... 1.03%
Plus Recoveries .................................
.33
Less Charge Offs........ .............................. 40
Net Additions to Profits...................... 96%
4. Per Cent of Investment to Total Resources
Loans and Discounts...................... . 44.56%
United States and Guaranteed
Bonds ....................... ..................... 11.92
Other Bonds ................... ................. 7.22
Total Investments ................ ...... 63.70%
5. Per Cent of Invested Capital to
Total Resources ......... .................. 8.85%
6. Per Cent of Income to Gross Earnings
Interest Income ............................... 83.18%
Service and All Other Income....... 16.82
Total ............................................. 100.00%
7. Per Cent of Expenses to Gross Earnings
All Salaries .....
29.61%
Interest on Deposits......................... 16.21
All Taxes ................ .
.
5.89
All Other Expense............... ........... 15.94
Operating Profit ............................... 32.35
Total ............................................. .100.00%
Our suggestion is th a t you tak e these p ercent­
ages and com pare them w ith the figures in your
own bank and see w hether they are above or be­
low.
Since so much emphasis is again being p u t on
service charges at this time, we analyzed the
“ Service and all other 111001116” as com pared to
the various classifications of resources showing
the “ P er cent of income to gross earn in g s” .

highest percentage of income of 19.06% was
from Service Charges in the group of banks w ith
resources from $400,000 to $600,000 and th a t the
lowest percentage of income from Service Charges
was in the group of banks w ith resources over
$5,000,000 or 13.44%.
We believe th a t a com parison of your bank
ratios w ith these figures will prove interesting
and we hope helpful.
A re c e n t I n te rn a l R ev­
Directors Are Not
enue
d e p a rtm e n t ru lin g
Salaried Employes
has said th a t d ire c to rs
O f a Bank

an d n o n -salaried officers
sh o u ld be in c lu d e d in d e te rm in in g w h e th e r a
b a n k has e ig h t or m ore em ployes.

We believe th a t this is an u n fa ir and unsound
ruling.
I t has been protested by num erous b a n k e rs’ as­
sociations, and it is a decision which should be
reversed.
C ertainly a director, who only atten d s direc­
to r s ’ m eetings on call, should not be classed as a
full-tim e employe, any more th an other nonsalaried officials.

Safety More

In these times of expanding
deposits, when there m ay be a
desire 011 the p a rt of banks to
indulge m speculative invest­
ments, it is w orth rem em bering th a t safety is
more im portant th an profits.
I t is our belief th a t banks today are b etter
m anaged and more carefully operated th an in
any previous time, and we are sure th a t safety
will be m ade the param ount issue durin g this
period.
I m D o r ta n t
tl
d
r*i

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Federal Reserve Bank of St. Louis

July 1942

8

Our whole concept of a complete
co rresp o n d en t service is based
upon the principle of determ m 9

ing the needs of our correspond­
ents . . . and servicing them with
the combined facilities of a well
eguipped transit departm ent and
an efficient personnel.

I o w a ’s F r ie n d l y B a n k

CENTRAL NATIONAL BANK
AND T R U ST COMPANY
M e m b e r F e d e r a l D e p o s i t In su ran ce C o r p o r a t io n

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Federal Reserve Bank of St. Louis

July 1942

9

Northwestern Banker

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Federal Reserve Bank of St. Louis

July Î9b2

10

Further A n sw e rs
to the Q uestion —

How M uch W ould

YOU Loan

to Elmer Blurp?
Bankers from the W heat Belt to the Corn Belt Tell How
They Make Loans
H E borrow ing a d v en tu res of E l­
m er B lurp, as described on pages
16 and 17 of th e Ju n e issue of
T he N orthwestern B anker, have
aroused m uch in te re st on th e p a rt
of o u r readers. If by chance you o ver­
looked th is featu re in th e Ju n e n u m ­
ber, we suggest you tu rn to it now.
Reference to page 17 of th e Ju n e issue
will be necessary, since th e replies
from b an k ers in th is second in stall­
m ent are based on th e financial s ta te ­
m en t of E lm er B lurp ap p earin g on
th a t page. B efore read in g w h at oth er
ban k ers say th e y w ould loan to E lm er,
we suggest you analyze th e statem en t
from th e stan d p o in t of th e loaning
policy of y o u r ow n bank, and th e n see
how y o u r figures com pare w ith those
published.

T

Nebraska, Adams County
H ere is how a b a n k e r from Adam s
County, N ebraska, w ould tak e care
of E lm er:
“It is a little difficult to rep ly in
dollars, b u t tak in g th e sta te m e n t at
face and th e inform ation given th e re ­
on as to E lm e r’s in te g rity and sta n d ­
ing, w ould say th a t w e w ould be very
glad to loan him on secu rity of his
livestock and grain, enough to pay all
his indebtedness, cash ren t, and re a ­
sonable o p eratin g expenses for 1942,
approxim ately $950; or, even increase
his loan above th a t am ount for th e
cost of additional livestock up to a
m axim um of $1,250.
“W e w ould not care to increase the
loan above th e first proposal for th e
purch ase of non-essentials.
“T h in k it m ay be said th a t we have
leaned ra th e r to th e conservative side
as com pared to w h at we m ight actu al­
ly do for a b o rro w er of E lm e r’s finan­
cial stan d in g w ith w hom we had pre-

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Federal Reserve Bank of St. Louis

July 19V2

PART TWO
vious experience, and w hose ability to
operate profitably w as know n to us.”

North Dakota, Cass County
We now take you to N orth Dakota,
w h ere ag ricu ltu ral loans are handled
som ew hat differently th a n in th e corn
belt:
“It w ould be our opinion in this
area th a t Mr. B lurp is a fairly suc­
cessful te n a n t farm er and th a t he
w ould be entitled to some assistance
from th e bank. It is ap p aren t th a t Mr.
B lurp has been able to m ake a living,
raise th ree children, and keep him self
q uite w ell out of th e hands of his cred­
itors.
“You ask if we w ould m ake a loan
to th is p a rty on his statem ent. As a
m a tte r of policy our loan w ould be on
a secured basis as we w ould w ish to
tak e a lien on his livestock and m a­
chinery. The am ount of th e loan
w ould not be based on th e value of th e
security, b ut on th e basis of his needs
and ability to pay.
“It does not appear in th e sta te ­
m en t w hen Mr. B lurp pays his cash
ren t, b u t we are p resum ing th a t the
re n t w ould be payable in th e fall after
th e crop is harvested. We notice th a t
his corn and oats are on a sh are basis,

so w e presum e th a t the $6 cash re n t
w ould be on 60 acres, w hich w ould
m ean an outlay of $360. H is o th er
operating expenses ap p aren tly w ould
be nom inal as he has his cream checks
and some AAA paym ents. We assum e
th a t m ost of his seed is provided for,
and in view of the fact th a t he is only
farm ing a q u a rte r of land, it w ould
not be necessary for him to h ire any
additional help, as he could rely on
his family.
“Such being th e case, w e w ould be
glad to advance Mr. B lurp at th is tim e
$800, w hich w ould tak e care of his
doctor bills, m iscellaneous bills, and
th e lien on th e tracto r, and allow him
$250 for expenses. As stated previous­
ly, we w ould w ish to have this loan
secured by all th e personal property.
It w ould th en be our u n d erstan d in g
th a t $250 of the am ount advanced
w ould be paid from p a rt of th e p ro ­
ceeds of th e sale of th e fifteen fall
pigs w hen th e pigs have reached th e
w eight for m arket.
“The balance of th e m oney from the
pigs he could use for o th er operating
expenses, or accum ulate for his fall
cash rent. T hen we w ould expect Mr.
B lurp to pay an o th er $250 in th e late
fall or w in ter from th e sale of the
spring pigs. T his w ould leave him
m ore o p erating funds from th e pro­
ceeds of th e sp rin g pigs w hich are not
carried over and also from th e sale of
his sows. T he $300 rem aining on th e
loan we w ould be glad to c arry into
th e following year.
“W ith th e plan outlined we w ould
not be assum ing all of th e operating
expenses, as we cannot see his neces­
sity for borrow ing any larg er sum at
the beginning of th e season. We cer­
tain ly can see no hazard in assisting
th is te n a n t farm er along th e plan out-

11
lined as we w ould not be encouraging
him to go into debt v ery deeply, and
th e b an k w ould a t all tim es have am ­
ple secu rity and Mr. B lurp w ould have
ex tra o p eratin g funds th ro u g h th e sea­
son from his hogs.
“As stated previously, we are not
p red icatin g our loan on th e value of
th e security, b u t on w h at we consider
th e m an ’s needs.”

Recreation in the Black Hills

Iowa, Cass County
A nd now dow n to Iowa, w h ere corn
and hogs seem to be definitely in th e
loaning picture:
“E lm er evidently has not been a
m oney m aker, as at age 48 he should
have accum ulated m ore property, u n ­
less he had som e losses th ro u g h land
investm en ts.
“W e w ould not loan him enough to
pay all of his debts, plus o perating
expenses as he has too m any cows—
too long a pro g ram to liquidate th e
loan th is year.
“W e w ould loan him , how ever, $300
to $400' to help on his o u tstan d in g
accounts, w ith a m ortgage on his live­
stock. A loan of th is ty p e could be
liquidated from th e sale of sows, after
farrow ing, and from th e sale of his
shoats. T his loan w ould be sufficient
to purch ase som e additional feed for
his hogs, as it w ould tak e 300 bushels
of corn or equivalent feeds to p u t th em
up to 250 pounds, and th is w ould only
allow him 100 bushels for his o th er
feeding of livestock.
“If he had a good crop th is sum m er,
an d th is loan w as paid, we w ould th e n
consider him again th is fall for his
fu rth e r req u irem en ts.”

A view in The Needles, one of the most scenic areas of B lack
H ills grandeur.

South Dakota, Brookings County
T his b an k er from South D akota goes
into a little m ore detail, and his a n ­
alysis is m ost in terestin g :
“E lm er is entitled to a loan of $500
a t th e p re se n t tim e. T hough he w ill
need an o th er 200 bushels of corn to
finish out his 15 hogs w eighing 100
pounds now. His 1942 crop w ill come
on soon enough to tak e care of th e
sp rin g pigs.
“Should his tra c to r (used) have
been p u rchased d u rin g th e p ast few
m onths, we w ould tak e it on a con­
ditional sales co n tract to be paid in
18 m onths, according to th e tim e of
th e sale of his sows, and la te r his hogs,
and still later his pigs.
“Our loan basis of a g rad u ated ra te
s ta rtin g at 8 p er cent for a m axim um
loan of $20 stra ig h t th ro u g h on cattle,
including calves, (not considering cat­
tle on feed, w hich feeder loan value
is h ig h er w ith 5 p e r cent in te re st)
$10 on sows, one half of th e m ark et
price of hogs (not sm all pigs) and $3
(T u rn to page 64, please)

OUTH DAKOTA is p rep arin g for
num erous riotous and colorful cel­
ebrations to be held th ro u g h o u t th e
Black H ills th is sum m er. F u n m ust
go on, and a notable program of events
is planned for th e to u rist season.

S

The opener is th e Black H ills RoundUp at Belle F ourche, Ju ly 3rd, 4th and
5th, a w hizzing, w hooping, w alloping
Round-Up th a t puts its dauntless rid ­
ers th ro u g h paces th a t only th e w est­
e rn ran g e knows.
Ju ly 27th and 28th b ring the Gold
D iscovery Days at Custer, w ith a b ril­
liant, stirrin g pageant enacting th e old
In dian legend of th e creation of th e
Black H ills and C uster’s expedition in
1874.
W ith th e Days of ’76 Celebration,
A ugust 6th, 7th, 8th and 9th, Deadwood, th a t historic city steeped in the
trad itio n s of the Old W est, tu rn s back
th e pages of tim e for four th rillin g

days and n ights and re-lives th e adven­
tu ro u s days of 1876. W ild Bill Hickok,
C alam ity Jane, P oker Alice, Deadwood
Dick and m any others again stalk the
streets of the old m ining town.
At Spearfish, in th e h e a rt of th e
Black Hills, th e w orld’s oldest, the
L uenen Passion Play is now presented
th ree tim es w eekly from Ju n e 21st to
Septem ber 6th. The great dram a is
enacted by a cast of over 500 players
against th e background o f . mile-high
Lookout M ountain on a stage over
th ree blocks long. Josef Meier, worldfam ous C hristus po rtray er, is in th e
featured role.
T here is a w ide v ariety of recreation
to be found in th e Black Hills, lots to
do for every type of vacationist. T here
are opportunities for riding, sw im ­
m ing, long beautiful drives, hiking,
fishing and h u n tin g in th e invigorating
atm osphere of this beautiful m ountain
playground.

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Federal Reserve Bank of St. Louis

July 19b2

12

New s

and

V

ie w s

O F THE BANKING W ORLD
By Clifford De Puy
R obert W. Sparks, national field di­
recto r of th e tre a su ry d e p a rtm e n t’s
w ar savings stam ps cam paign, in a
recen t address pointed out th a t no
few er th a n 20,000 em ployes of b anks
w ere devoting th e ir full tim e in th e
banks to th e selling and issuing of w ar
savings bonds.
T his is w h at we call going all-out for
victory in th e selling of w ar bonds.
Fred D. C um m ings of th e D rovers
N ational B ank of Chicago en tered the
N avy in F e b ru a ry of th is year, and in
a recen t le tte r to H enry H. H ayn es,
editor of th e N orth w estern Banker,
said:
“H ave ju st finished read in g th e c u r­
re n t issue of th e N orthwestern B anker,
and it sure m akes m e w a n t to get back
into th e state of Iowa. More th a n ever
I m issed those sw ell group m eetings,
w here a good tim e is had by all.
“My career in th e N avy has been a
very exciting one so far, an d as tim e
goes on it is becom ing m ore so. T his
area is a very im p o rtan t and v ital one,
as th is is m ainly a torpedo base. I
have recen tly been tak en off a de­
stro y e r and assigned to shore duty
here.
“W hen I see you again in civilian
life, I ’ll tell you all th e facts, b u t cen­
sorship p rev en ts me telling m uch a t
present.
“Give m y reg ard s to Cliff and th e
rest of th e gang w hen you see th em .”
P reston D elano, C om ptroller of th e
Currency, rep o rts th a t th e 5,123 n a ­
tional b anks had n e t o p eratin g e a rn ­
ings for 1941 of $234,015,000, w hich w as
$18,710,000 m ore th a n the am o u n t re ­
ported for th e y ear 1940.

In speaking before the P en n sy lv an ia
B ankers Convention, one b an k er p o in t­
ed out th e problem s th a t th e credit
m an of today has by saying:
“Credit used for production during
this period m u st be considered in tw o
categories: loans for d efen se purposes
and loans for non-defense purposes.
The gran tin g of credit w hich assists
the d efen se program offers b ank ing an
opportunity and resp on sib ility w hich
it w ill continue to m eet to the full ex ­
ten t of its ab ility.”

P rofessor W. Barton Beach, of the
H arv ard L aw School, in speaking be­

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Federal Reserve Bank of St. Louis

July 19b2

fore th e New H am pshire B ankers As­
sociation, em phasized th a t w hen peace
comes, A m erica m u st help police the
w orld, and he pointed out that:
“W h en this w ar is w on G erm any
m u st he disarm ed, and never, n ever
again allowed to get a gun into its
hands.
“F or the last fifty years the P rus­
sians of G erm any ‘have dem onstrated
a com plete incapacity to live peace­
fu lly in a civilized society.’
“D isarm ing of G erm any under the
T rea ty of Versailles was ‘a good job,
and if the great pow ers, E ngland,
France and ourselves, had insisted
upon perform ance of these provisions,
there w ould have been no second
W orld W aP.”
Mark A. B row n, F inancial Advisor
to th e D irector of In d u stry O peration
D ivision of th e W ar P roduction Board
and fo rm er vice presid en t of the H a r­
ris T ru st and Savings B ank in Chi­
cago does not believe th a t W ashington
is in as chaotic a condition as m any
thin k .
R ecently he rem ark ed th at, “I w an t
to dispel the idea th a t W ashington is
a m adhouse, an asylum ru n by the in ­
m ates. It is a place of v ery m any busy
people. It is like a log floating dow n
th e stream in w hich th ere are 50,000
ants, all of w hom th in k th ey are di­
rectin g the log, b u t it is not a m ad­
house.”
Dr. P aul F. Cadman, Econom ic Ad­
visor of the A m erican B ankers Asso­
ciation, now believes th a t th e U nited
States can bear a w ar debt of $200,000 , 000 , 000 .

W h e th er he is rig h t or w rong re ­
m ains to be seen, b u t he gives his
reasons for such a large debt by say­
ing, “Sound finance is like sound gov­
ern m en t, it rests upon th e in teg rity of
th e prom isor. One reason we can bear
a $200,000,000,000 debt is th a t those
w ho p u t up a large p a rt of th e m oney
have unlim ited faith in the co ntract
u n d e r w hich it is borrow ed. A nother
reason we can su p p o rt a $200,000,000,000 debt is th a t we have th e productive
capacity to produce enough w ealth
a fte r th e w ar to service th a t debt, to
m eet th e in te re st charges on it, and
u ltim ately, to pay it. B ut th a t task
envisages an in d u strial and agricul­

tu ra l o u tp u t g re a te r th a n an y th in g
heretofore achieved. It m eans w orld
m ark ets as w ell as dom estic m arkets.
It m eans a new economic statesm an ­
ship fully conscious of th e fact th a t the
ghost of isolationism has been laid. It
m eans an independent A m erican peo­
ple, released from th e dead hand of
bu reau cracy —freed from the m u lti­
plicity of executive controls w hich are
a necessary b u t nonetheless un-A m eri­
can ad ju n ct of w ar.”
Joseph W ayne, Jr., chairm an of th e
board of the P hiladelphia N ational
Bank, w ho died recently at the age of
68, had long been a popular and prom ­
in en t figure in banking circles of the
U nited States, and his loss w ill be
keenly felt by his m any friends
th ro u g h o u t th e U nited States.
Mr. W ayne started as a clerk in th e
bank, and rose to th e head of th a t in ­
stitu tio n th ro u g h his own ability and
u n tirin g efforts.
E.
C hester G ersten, presid en t of the
Public N ational B ank & T ru st Com­
p any of New York City, w as elected
vice p resid en t of th e New York B ank­
e rs ’ A ssociation at th e an n u al m eeting
recently, succeeding John P. M eyers,
p resid en t of the P la ttsb u rg N ational
B ank & T ru st Company, w ho w as pro­
m oted to th e presidency of th e asso­
ciation.
John J. D riscoll, Jr., of Driscoll,
M illet and Com pany of New York be­
lieves th a t banks w ill have to m ake a
m arked increase in service charges in
order to increase th e ir earnings in the
future.
H erbert V. P rochnow , a ssistan t vice
presid en t of the F irs t N ational B ank
of Chicago, has ju st w ritte n a new
book, “The P ublic Speaker’s Treasure
C h e s t , w hich has been published by
H arpers.
In a letter to th e N orthwesternB anker, Mr. P rochnow says:
“Briefly this book m ay be divided
into four m ajor divisions:
1. C hapter I—H ow to P rep are Your
Speech. C ontains 60 illu stratio n s show ­
ing step by step how to prep are a
speech.
2. C hapter I I —H ow to M ake Your
Speech Sparkle. Gives 15 effective
tools by w hich a speech can be given
color—over 65 illustrations.
3. C hapter I I I —Public Speaking in a
N utshell. A concise outline in only
four pages of th e essential points to
know in public speaking.
4. C hapters IV to XI. C ontains 4,000
item s of source m aterial, such as 1,000
hum orous stories, 500 epigram s, 200
(T u rn to page 62, please)

13

The

Minnesota
Convention
DUL UTH
July 8 - 1 0
«

Headquarters — Hotel Duluth
O. G. J O N E S
P re s id e n t, M in n e so ta B an k e rs A sso c ia tio n

ESIG N A TED a “w ar conference,”
th e a n n u a l convention of th e M in­
nesota B an k ers A ssociation in
D uluth, Ju ly 8th to 10th w ill discuss
w artim e problem s of b an k operations
and h e a r one of th e n a tio n ’s o u tsta n d ­
ing com m entators on th e w ar in th e
Pacific.
P rin cip al speak ers w ill include P aul
F. Cadm an, econom ist for th e A m er­
ican B ankers A ssociation; and U pton
Close, NBC com m entator and a u th o r­
ity on th e Jap an ese situation.
T h ere w ill be a panel discussion on
th e soldiers and sailors civil relief act,
conducted by R alph H. Comaford, M in­
neapolis a tto rn e y and m em ber of th e
law firm w hich acts as counsel for th e
sta te b an k ers association. A nother
panel discussion w ill cen ter on R egula­
tio n “W ”, w ith T hom as H odgson, a s­
sista n t counsel of th e F ed eral R eserve
B ank of M inneapolis, in charge.
T he com plete p ro g ram follows:

D

Wednesday Evening, July 8th
Pre-C onvention Sm oker—L. O. Olson,
vice presid en t, presiding.
R ep o rt of N om inating Com m ittee.

E n te rta in m e n t provided by th e D uluth
C learinghouse A ssociation Banks.

Thursday Morning, July 9th
Golf T o u rn am en t at N orthland Coun­
try Club Course. Teeing off a t 7:30
a. m. and n ot later th a n 9:00 o’clock
a. m.
C om m ittee m eetings.
Council m eeting, 10:00 a. m.—Italian
Room.
M eeting of “The P ioneer Club”, 10:00
a.m.—N orse Room. L uncheon to
follow. (Sam e room.)
M innesota E x am in ers Club, 11:00
o’clock—Pom peian room. Luncheon
to follow. (Sam e room.)
On account of th e sm oker being held
th e evening of th e 8th, no reg u lar p ro ­
g ram is arran g ed for th e m orning of
th e 9th, w hich w ill give th e delegates
am ple tim e to visit.

Thursday Afternoon, July 9th
Call to O rder—Ball Room, H otel Du­
luth.
Invocation—Rev. F ra n k A. Court, P as­
tor, F irs t M ethodist Church, D uluth.
P resid en t’s A nnual A ddress—O. G.

Jones, P resid en t Goodhue County
N ational Bank, Red W ing.
A ddress—Dr. Paul F. Cadm an, econ­
om ist for th e A m erican B ankers As­
sociation.
Open P anel D iscussion on “Soldiers
and Sailors Civil Relief A ct”, con­
ducted by R alph H. Com aford of the
firm of Fow ler, Y oungquist, F u rb er,
T aney and Johnson, atto rn ey s for
M innesota B ankers Association.
A. B. A. elections.

Thursday Evening, July 9th
A w arding of golf prizes.
A nnual B anquet—Ball Room, H otel
D uluth.
A ddress—“Our D estiny in th e Pacific”,
by U pton Close, NBC com m entator.
Mr. Close is undoubtedly th e o u t­
standing a u th o rity on the Pacific sit­
uation, having been a new spaper re ­
p o rte r located in Jap an for a n um ber
of years, and also a stu d en t on th e
Pacific situation.
D ancing—Joe P riley and His O rches­
tra.
(T urn to page 29, please)

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Federal Reserve Bank of St. Louis

July 1942

14

Things You W ill W ant to Know
A b o u t Revised
w w as revised by
am endm ent effective May 6, 1942,
now covers four different types of
credit, nam ely, in stallm en t sales of
listed articles, charge accounts, in stall­
m ent loans and single-paym ent loans.
The m a tu rity for reg u lated in sta ll­
m ent extensions of credit has been
reduced to a m axim um period of 12
m onths, except w h ere th e proceeds
are used to pu rch ase autom obiles and
m otorcycles th e m axim um m a tu rity
is 15 m onths.
The dow n pay m en t req u irem en t on
extensions of credit, oth er th a n charge
account credit, for listed articles has
been reduced to one-third of th e cash
price of th e article, except in th e case
of pianos and fu rn itu re th e dow n
paym en t need not be m ore th a n onefifth of th e cash price.
Charge accounts are b ro u g h t u n d er
th e reg u latio n for th e first tim e by
the May 6, 1942, am en d m en t and are
regulated to th e ex te n t th a t no listed
article is p erm itted to be sold in a
charge account w ith an agreem ent
th a t pay m en t th erefo r m ay be d eferred
beyond the te n th day of th e second
calendar m onth follow ing th e calendar
m onth w hen such article w as sold.
If th e charge account covering listed
or unlisted articles for w hich credit
w as extended is not paid w ith in th e
prescribed period, it is deem ed to be
in default and d u rin g such d efault th e
vendor is not p erm itted to extend fu r­
th e r credit to th e obligor for an y listed
article.

R

e g u l a t io n

Three Methods
T hree m ethods are prescribed in th e
regulation for cu rin g defaulted charge
accounts, nam ely, (1) by pay m en t in
full, (2) by w ritte n agreem en t signed
by th e p u rch aser to pay th e am ount in
default on a six m o n th ’s in stallm en t
basis, w ith paym ents of not less th a n
$5.00 p er m onth or $1.25 p er week,
and (3) by th e p u rch aser qualifying
for and signing a sta te m e n t of neces­
sity and a w ritte n ag reem en t to pay
th e am o u n t in d efault on a 12 m o n th s’
installm en t basis.
G enerally speaking, in stallm en t loans
of $1,500 or less, w h e th e r or not th e
proceeds are to be used to p u rchase

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July 1942

Regulation W

By Paul C . Hodge
Assistant Counsel
Federal Reserve Bank
Chic ago

a listed article, are lim ited to a 12
m o n th ’s rep ay m en t basis, except th a t
if th e proceeds are to be used to re ­
duce or re tire a charge account cover­
ing a listed article or a single-paym ent
loan th e m a tu rity is lim ited to six
m onths. An in stalm en t loan to re tire
a charge account confined to unlisted
articles, w eth er or not in default, m ay
be scheduled for 12 m onths.
Single-paym ent loans, w hich are
likew ise b rought u n d er th e regulation
for th e first tim e by th e May 6, 1942,
am endm ent, if in an am ount of $1,500
or less, are subject to a m axim um m a­
tu rity of not to exceed 90 days, w h e th ­
er or not the proceeds are to be used
to p u rch ase a listed article. Two m eth ­
ods are provided for th e renew al of
reg u lated single-paym ent loans m ade
on and a fter May 6, 1942, nam ely, (1)
by m eans of an installm en t loan w ith
an overall m atu rity of not to exceed
12 m onths from the date on w hich th e
original
single-paym ent loan w as
made, except th a t if the proceeds of
th e original loan w ere used to reduce
or re tire a charge account th e m atu rity
of such installm en t loan m ust not ex­
ceed six m onths from the date th e or­
iginal single-paym ent loan w as made,
and (2) by a series of successive ob­
ligations, each having a m atu rity not
to exceed 90' days w ith an overall
m axim um m a tu rity of not to exceed
12 m onths from the date th e original
single-paym ent loan w as m ade (six
m onths w here th e proceeds w ere used
to reduce or re tire a charge account),

and provided th a t th e borrow er pays
an am ount at th e tim e of each such
renew al, including th e first, sufficient
to retire th e w hole indebtedness w ith ­
in th e m axim um perm itted period.
Single-paym ent loans w hich w ere
m ade before May 6, 1942, m ay be re ­
new ed or revised m ore th a n once and
on any basis w ith o u t being subject
to any of th e req u irem en ts of th e
regulation. T his ru le applies to both
the original lender and any o th er re g ­
is tra n t m aking a loan to reduce or
re tire such o u tstan d in g single-pay­
m ent loans. H ow ever, in th is connec­
tion, a jo in t statem en t issued to and
published by th e press on May 7, 1942,
by th e com ptroller of the currency,
th e board of directors of th e Federal
Deposit In su ran ce C orporation, and
th e board of governors of th e F ederal
R eserve System urged th a t th e p rin ­
ciple of am ortization of debts be ap ­
plied to o th er loans not subject to
R egulation W, p a rticu larly to th e vol­
um e of o u tstan d in g single paym ent
loans to individuals for nonproductive
purposes.

The "Farmer Plan"
Section 9 of th e regulation, entitled
“Seasonal A d ju stm en ts” contains p ro ­
visions u n der w hich regulated ex ten ­
sions of credit m ay be m ade rep ay ­
able on a m ore lenient basis. F o r ex­
am ple, th e so-called “F a rm e r P lan ”
for th e rep ay m en t of any in stallm en t
credit is retain ed in th e R egulation
Section 9(b) and a new p arag rap h
has been added th ereto w hich pro­
vides th a t if th e p u rch aser or borrow er
is know n to th e re g istra n t to custom ­
arily receive 75 per cent or m ore of
his incom e du rin g one or tw o seasons
of th e year from farm ing or stock
raising, his extensions of credit w h eth ­
er charge account, single-paym ent loan
or installm en t m ay be m ade repayable
sta rtin g w ith or d u rin g th e next cal­
en dar m onth follow ing th e season or
seasons in w hich he custom arily re ­
ceives his incom e as th e re in p re ­
scribed.
The regulation also provides th a t
all regulated single-paym ent and in ­
stallm en t loans m ust be supported by
(T u rn to page 27, please)

15

South Dakota Meeting W ell Attended
About 400 Are Registered at Fifty-first Annual Convention of South
Dakota Bankers Association* Harold N. Thomson, of
Presho, Is Elected President

E S P IT E lack of tires, floods and
high tem p eratu res, th e South Da­
kota B an k ers A ssociation staged
one of its m ost successful and wellatten d ed conventions in Sioux F alls
last m onth w hen n early 400 b an k ers
and th e ir w ives and d au g h ters cam e to
th e larg est city in th e state for the
fifty-first a n n u al m eeting. Follow ing
th e practice of m ost organizations th is
year, th e b u siness sessions w ere con­
fined to one day only, and th ese ses­
sions w ere stric tly b u siness from s ta rt
to finish, w ith an excellent program
arran g ed by Secretary George M. Star­

D

ring.
Harold N. Thom son, vice p resid en t

of th e F a rm e rs & M erchants State
B ank, P resho, w as nam ed p resid en t of
th e South D akota B ankers A ssociation

for th e com ing year, w ith Tom N. Hayter, vice presid en t of th e F irst N a­
tional Bank, Sioux Falls, elected to th e
office of vice president. Mr. S tarrin g
w ill of course continue as secretary
and tre a su re r of th e A ssociation. L. A.
Lohr, cashier of th e F irs t N ational
B ank of Lake N orden, and C. J. Poshuta, vice p resident and cashier of the
U nderw ood S tate Bank, New U nder­
wood, w ere nam ed as m em bers of the
A ssociation executive council.
South D akota m em bers of the A m er­
ican B ankers A ssociation appointed
H arold T hom son as th e South D akota
m em ber of th e ABA nom inating com­
m ittee to serve a t th e com ing N ational
convention in D etroit, w ith W. C.
R em pfer, cashier of the F irst N ational
B ank, P ark sto n , as altern ate.
Vice

AT T H E SOUTH DAKOTA STATE CON VEN TION —
R eading from le ft to rig h t: 1— H. N. Thomson, vice p resi­
dent F arm ers & M erchants B ank, Presho, new ly elected p resi­
dent of the South D ak o ta B ankers A ssociation; and T. N.
Hayter, vice p resid en t F irs t N atio n al B an k & T ru st Company,
Sioux Falls, new A ssociation vice president. 2—George M.
Starring, secretary of the South D ak o ta B ankers A ssociation;
and Ralph M. Watson, p resident N orthw est Security N atio n al
B ank, Sioux F alls. 3— Tom S. Harkison, vice p resid en t N a ­
tional B ank of South D akota, Sioux F alls; T. N. Hayter; and

p residents of th e several ABA state di­
visions elected were: N ational B ank
Division, Fred LeAvis, p resid en t F irst
N ational B ank in Lem m on; Savings
B ank Division, J. W . B ryant, vice p res­
ident Com m ercial T ru st & Savings
Bank, M itchell; State B ank Division,
R. H. Jackson, cashier Security State
Bank, M cIntosh; and T ru st Division,
P ierce H. M cD ow ell, vice p resid en t and
tru s t officer, N o rthw est Security N a­
tional B ank & T ru st Company, Sioux
Falls. L argely th ro u g h th e efforts of
Ralph W atson, p resid en t of the N o rth ­
w est Security N ational, Sioux Falls,
and ABA vice p resident for South Da­
kota, all b u t nine banks in th e state are
now m em bers of the A m erican B ank­
ers A ssociation, and Mr. W atson says
(T u rn to page 39, please)

William C. Duffy, vice p resid en t Union S avings B ank, Sioux
F alls. 4—L. T. Morris, p resid en t F irs t C itizens N ational
B ank, W atertow n, and im m ediate p a st p resident of the South
D akota B ankers A ssociation; and B. R. Laird, cashier Se­
cu rity S tate B ank, Tyndall. 5—C. O. Gorder, vice president
F irst N ational B ank of B lack H ills, D eadwood; and E. L.
Stucker, cashier N atio n al B ank of Tulsa, Tulsa, Oklahoma.
6—Fred L. Lewis, p resid en t F irs t N atio n al B ank in Lemm on;
and John T. Ashford, em ergency crop and feed loan official,
Omaha.

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Federal Reserve Bank of St. Louis

July 1942

In A Dispute of
Is A Survey Always Recognized ?
A dispute arose b etw een tw o Iow a
b an k ers reg ard in g th e b o u n d ary line
betw een certain lands ow ned by th em
in th a t state. In th e final analysis the
m a tte r boiled dow n to w h e th e r a line
fixed by su rv ey or a line recognized
and acquiesced in as such for a period
of at least ten y ears w as th e tru e boun­
dary. W as th e la te r th e correct line?

These and Other Timely Legal

Yes. In Iow a a line m arking the
boundary b etw een adjoin in g ow ners
w hich is recognized and acquiesced in
as such for a period of at least ten
years becom es the true boundary, not­
w ith stan d in g it is not the line fixed by
survey.

Could the bank, in th e preceding
question, recover th e balance from th e
son a t a later date u n d er th e general
ru le th a t th e receipt of a sm aller sum
is not a good accord and satisfaction of
a larg er one?

H odges, an Iow a banker, w as execu­

to r of th e estate of F ra s e r in th a t state.
As an incident to th e settlem en t th e re ­
of a question arose reg ard in g a check
given by F ra se r d u rin g his lifetim e to
McGaw, w ho had a claim ag ain st th e
estate, and w h e th e r such check, w hich
had been received, endorsed, and
cashed by McGaw, co n stitu ted a se ttle ­
m ent of M cGaw’s claim. W as it p ro p er
for th e executor and th e p ro b atin g
court to go beyond recitals in th e
check to determ in e w h e th e r th e claim
should be allowed?
Yes. The receipt of a check and the
en d orsem ent and cash in g th ereof do
not n ecessarily am ount to a settlem en t
of the account for w hich the check w as
given. G enerally speaking, a check is
to be treated as a receip t and is su s­
ceptible of explanation.

Questions Are Answered
By the
LEG A L D EPA RTM EN T

No. P aym ent by a third person of a
sum less than the am oun t due, w ith
the u nd erstan ding that it shall be in
full satisfaction thereof, is a valid ac­
cord and satisfaction , and no action
w ill lie again st the debtor to recover
the balance. In such case there is a
n ew con sid eration from a n ew party,
and the general rule th at the receipt of
a sm aller sum is not a good accord and
satisfaction of a larger one does not
apply.
D uncan ow ed a N ebraska bank $500

on a note w hich he w as unable to pay
on its due date. T h ereafter he exe­
cuted a fu rth e r note and a m ortgage in
th a t am ount. W hen th e note secured
by th e m ortgage fell due, it w as not
paid. The b an k sued to foreclose.
D uncan defended on th e gro u n d th ere
w as no consideration for th e note and
m ortgage by reason of w hich th ey
w ere invalid. W as th e defense good?

M atthew s ow ed a N eb rask a b ank

$500. He w as unable to pay and, a fte r
considerable negotiations, w as able to
prevail on his fa th e r to pay, and th e
b ank to accept, $250 in full satisfaction
of th e indebtedness. Did th e fact th a t
a th ird p a rty m ade th e pay m en t place
th e b an k in a position w h ere it could
recover th e balance from th e son at a
later date?
No. A p aym en t by a third party, ac­
cepted by a creditor as fu ll satisfaction
of h is claim , discharges the debtor’s
duty to the creditor to pay such claim .

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 19J2

afte r his death, to probate both the w ill
and th e codicil?

No. D uncan w as m orally bound to
pay the debt originally incurred by
him and th is m oral obligation to pay
that debt w as sufficient consideration
for the execu tion of the note for the
am ount of that debt and the m ortgage
secu rin g it.
F arrell, a N ebraska banker, m ade a
w ill in th a t state and subsequently
m ade a codicle th ereto w hich w as w rit­
ten on the back of th e p aper on w hich
th e w ill w as w ritten . W as it proper,

Yes. A m an’s la st w ill m ust not of
n ecessity be confined to one testa m en ­
tary paper. It m ay con sist of several
d ifferent testam entary papers, of dif­
feren t dates, and execu ted and attested
at different tim es. The p lacem ent of
the codicile on the back of the w ill w as
proper and both should be probated.
Banks, a M innesota banker, sold a
farm in th a t state to Snow. As a p a rt
of th e tran sactio n Snow agreed to “as­
sum e” an existing m ortgage thereon.
He did not agree specifically to pay th e
m ortgage. W as he obligated to pay?
Y es. An agreem en t by a vendee to
assu m e an ex istin g m ortgage on prop­
erty sold, w ith o u t an exp ress agree­
m ent that he also agrees to pay the
m ortgage, is one to pay the m ortgage
debt.
A s an in cid en t to m aking a deposit
of funds in a real estate deal Brow n
obtained from a M innesota ban k a
cash ier’s check payable to Sm ith. The
deposit of th e check w as duly m ade b u t
a dispute arose reg ard in g th e deal and
both B row n and Sm ith m ade claim
against th e bank for th e funds re p re ­
sented by th e check. Sm ith sued the
bank and it b ro u g h t B row n into th e
case so th a t th e eq u ivalent of an intrep lead er su it resulted. W as such
proper?
Yes. In a recen t case in v o lv in g a
bank in th e sou th eastern part of Min­
n esota the Suprem e Court of that state
held th at such action w as proper and
that the bank in v o lv ed dealt w ith the
m atter in a legal fashion in so han­
d lin g it.
A North D akota banker left certain
g rain in a public w arehouse there. The
w arehouse w as destroyed. The w are­
housem an offered to pay th e b an k er
th e price prevailing on th e date of th e
d estruction for th e g rain th a t had been
left w ith him. The b an k er refused to
(T u rn to page 27, please)

17

MEMBER
FEDERAL
D EPO SIT
INSU RANC E
CORPORATION

The Omaha
N ational Bank
N orth w estern Banker


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Federal Reserve Bank of St. Louis

July 19^2

18

Milsten

North Dakota Banker Head
Hans A . Fischer Named Vice President at Annual
Convention in Dickinson

M

EM BERS of th e N o rth D akota
B ankers A ssociation, at th e ir
fo rtieth an n u al c o n v e n t i o n
held last m onth in D ickinson, elected
J. O. M ilsten as p resid en t of th e o rg an ­
ization. Mr. M ilsten is p resid en t of
th e F irs t N ational B ank of Belfield.
H. A. F ischer, cashier of th e F a rm e rs
S ecurity Bank, at W ash b u rn , w as
nam ed vice president, and E. R. Shaw ,
p resid en t of the F argo N ational B ank
w as elected tre a su re r. C. C. W attam ,
of Fargo, of course rem ain s as secre­
tary. In th e event it is th o u g h t advis­
able to om it th e a n n u al m eeting in
1943, th e executive council of th e
N orth D akota B ankers A ssociation
w as given th e a u th o rity to appo in t th e

new ly elected officers to hold over u n ­
til such tim e as a convention can be
held. Devils Lake w as nam ed as the
n ex t convention city.
R egistration at D ickinson, ev ery ­
th in g considered, exceeded expecta­
tions, w ith about 200 total, of w hich
145 w ere men. N ot show n on th e offi­
cial program , b u t a p a rt of th e con­
v ention activities w hich everyone en ­
joyed im m ensely, w as th e co n trib u ­
tion of Song L eader Charlie R ieger,
Jam iso n & Company, M inneapolis, and
th a t accom plished accordion artist,
Dr. R olf H artig. A t the stag p a rty and
at th e convention ban q u et th e sw eet
stra in s of classical and sw ing gave th e
b arb ershop chord addicts a chance to

AT T H E NORTH DAKOTA CON VEN TION — R eading
from le ft to rig h t: 1— G. A. Lenhart, cashier b ank of Hazelton; Fred D. McCartney, vice p resid en t F irs t N atio n al Bank,
O akes; and Hans Fischer, cashier F arm ers S ecurity Bank,
W ashburn. 2— V. A. Heiberg, p resid en t F arm ers S ta te B ank,
M innew aukan; and H. M. Weydahl, executive vice p resident
B ank of K illdeer. 3— Martin Aas, vice p resid en t F irs t S tate
B ank, New R ockford; and Robert R. Bertsch, assista n t cash­
ier F irs t N atio n al B ank, Dickinson. 4— A. R. Kumm, vice

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 19b2

exercise th e ir vocal abilities, w hich
th ey did w ith rig h t good will. A nd as
it should be, C harlie and th e Doctor
appeared to have m ore fun th a n an y ­
one else.
F red Trish, presid en t of the F irs t
N ational Bank, Fargo, w as nam ed th e
N orth D akota m em ber of the ABA
nom inating com m ittee, w ith Mr. Mil­
sten of Belfield as altern ate. N orth
D akota vice presid en ts of the several
ABA divisions w ere elected as follows:
E. G. B loedow , presid en t Security N a­
tional Bank, Edgeley, national b ank
division; T. A. T ollefson , cashier F irs t
N ational Bank, D ickinson, savings

(T u rn to page 41, please)

p resid en t and cashier Peoples S ta te B ank, V elva; C. P.
Kjelstrup, executive vice p resid en t A m erican S tate B ank,
M inot; T. M. Condon, FD IC , B ism arck; and J. L. Tschida,
cashier F irst S ta te B ank, Galva. 5— A. G. Idsvoog, G rafton;
Charles Wattam, secretary N orth D akota B ankers A ssocia­
tion, F arg o ; C. I. Erstad, cashier F arm ers S tate B ank, Maddock; A. W. Omdahl, cashier Ram sey County N ational B ank,
Devils L ak e; and Grover Tollefson, a ssista n t cashier F irst
N atio n al B ank, D ickinson.

How Banks Are Working
FOR

V I C T O R Y !
Throughout the nation banks are w h oleh earted ly participating in the
W ar Effort and WITHOUT REMUNERATION h a v e sold more than
two-thirds of all the W ar Bonds now outstanding. Banks listed on
this p a g e, with deposits ranging from a half m illion dollars up to
sev era l m illion, h a v e sold an a v era g e of $177,261 of W ar Bonds
per bank from M ay, 1941, to June 1, 1942. N aturally som e of the
b an k s sh ow n b elow are w ell a b o v e this a v era g e, w h ile som e m a y
b e slightly b elow , but it d o es indicate the vigorous support w hich
b anks are rendering in our Battle for Freedom!

ALBURNETT STATE BANK

JASPER COUNTY SAVINGS BANK

A lb u rn ett, Io w a

N ew ton, Io w a

ALTA VISTA STATE BANK

PELLA NATIONAL BANK

A lta V ista, Io w a

FIRST TRUST & SAVINGS BANK
A rm strong, Io w a

BALDWIN SAVINGS BANK
B ald w in , Io w a

BENTON COUNTY STATE BANK
B lairstow n, Io w a

P ella, Io w a

CITIZENS SAVINGS BANK
S ac City, Io w a

THE SECURITY TRUST & SAVINGS BANK
S h e n a n d o a h , Io w a

UNION-WHITTEN STATE SAVINGS BANK

STATE SAVINGS BANK

U nion, Io w a

C antril, Io w a

FIRST NATIONAL BANK

THE CENTRAL STATE BANK & TRUST CO

W in o n a, M innesota

E lk a d er, Io w a

STOCK YARDS NATIONAL BANK

STATE BANK OF FAYETTE

S outh St. P au l, M in n e so ta

F a y e tte , Io w a

FIRST NATIONAL BANK

FIRST NATIONAL BANK
H am pton. Io w a

HAMPTON STATE BANK
H am pton, Io w a

IOWA STATE BANK & TRUST CO.
Io w a City, Io w a

FARMERS STATE BANK


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

G ra n d Islan d , N e b ra s k a

CONES STATE BANK
P ierce, N e b ra s k a

NEBRASKA STATE BANK
V alen tin e, N e b ra sk a

CITIZENS STATE BANK

Je su p , Io w a

E nderlin, N orth D ak o ta

FARMERS STATE BANK

THE BANK OF CENTERVILLE

K a n a w h a , Io w a

C en terv ille, S outh D akota

KELLOGG SAVINGS BANK

COMMERCIAL STATE BANK

K ellogg, Io w a

W a g n e r, South D ak o ta

How Banks Are Working
FOR

V I C T O R Y !
Throughout the nation banks are w h oleh earted ly participating in the
W ar Effort and WITHOUT REMUNERATION h a v e sold more than
two-thirds of all the W ar Bonds now outstanding. Banks listed on
this p a g e , with deposits ranging up to a half m illion dollars, h a v e
sold a n a v era g e of $30,387 of W ar Bonds per bank from M ay, 1941,
to June 1, 1942. N aturally som e of the banks show n b elow are w ell
a b o v e this a v era g e, w h ile som e m a y b e slightly b elow , but it d o es
indicate the vigorous support w hich banks are rendering in our
Battle for Freedom!

STATE BANK OF BUSSEY

FARMERS SAVINGS BANK

B u ssey, Iow a

W alford, Iow a

FARMERS SAVINGS BANK

CHOKIO STATE BANK

Clermont, Iow a

Chokio, M innesota

CROMWELL STATE SAVINGS BANK

STATE BANK OF LISMORE

Crom well, Iow a

Lismore, M innesota

SECURITY SAVINGS BANK

FIRST NATIONAL BANK OF WILMONT

Farnham ville, Iow a

W ilmont, M innesota

THE FARMERS SAVINGS BANK

FARMERS STATE BANK

Joice, Iow a

A v o ca , Nebraska:

FARMERS SAVINGS BANK

CRAWFORD STATE BANK

M artelle, Iow a

Crawford, N ebraska

RANDALL STATE BANK

BANK OF LEIGH

R andall, Iow a

Leigh, N ebraska

FARMERS STATE BANK

STROMSBURG BANK

Stanhope, Iow a

Stromsburg, N ebraska

THURMAN STATE SAVINGS BANK

FIRST STATE BANK OF WARNER

Thurman, Iow a

W arner, South Dakota


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Federal Reserve Bank of St. Louis

How Life Insurance

W

M eets
There Is No Better Investment in the Land Today
Than Life Insurance
H E in v estm en t problem s of life
in su ran ce basically are th e sam e
at all tim es w h e th e r o u r n atio n
be at peace or at w ar; th a t is, th e
in v estm en t of m oney in securities th a t
provide safety of principal, and at th e
sam e tim e yield a reasonable re tu rn .
C ondition today m ake th e situ atio n
m uch m ore com plicated th a n at any
tim e w e can probably recall. F irst,
we have our ow n n atio n al econom ic
problem s and, second, we have th e
problem of being engaged in a w ar
th e resu lts, th e cost, and th e period of
w hose d u ratio n all as y et are u n d e te r­
m ined.
The falling in te re st ra te is a serious
problem to all of us. In re c e n t years
th e average ra te of r e tu rn on in v est­
m en ts earned by th e tw e n ty largest
life in su ran ce com panies in th is coun­
try has su b stan tially decreased. L et
m e po in t out th a t a drop of b u t onete n th or 1 p er cent in yield to a com ­
p an y w ith assets of b u t tw o h u n d red
and fifty m illion dollars occasions a
loss of $250,000 a year. And in th e case
of a com pany w ith five billion dollars
of assets, th is sam e sm all drop will
reduce th e com pany’s incom e $5,000,000 a year. Total assets of th e legal
reserv e com panies aggregate about 30
billion dollars. A drop of 1 p er cent
in earn in g s (and it has been about th a t
m uch in th e last eight or ten y ears),
w ill am o u n t to 300 m illion dollars a
year, w hich should have gone to the
secu rity of th e policyholders.
N o tw ith stan d in g th is serious situ a ­
tion, life in su ran ce—not easily b u t
safely and w ith no elem ent of u n c e r­
ta in ty —m et th is problem . T here is no
b e tte r in v estm en t in th e land today
th a n life insurance. It is indeed a fo r­
tu n a te circum stance for life insu ran ce
th a t its earn in g s m ay come from not
only in te re st b u t from m o rtality and
expense savings as well. T hese last
tw o factors, p a rtic u la rly m ortality,
form a b u lw ark w ith o u t w hich th e re
m ight be som e concern, b u t w ith it
no reaso n to be fearful.
A p p aren tly th is ad m in istratio n is
com m itted to th e policy of a re d is tri­
b u tio n of w ealth and has m ade sub-

T

By Asa V. Call
Executive Vice President
Pacific Mutual Life Insurance Co.

A S A V. C A L L

stan tial progress along these lines.
W h eth er it will be successful or not
depends upon you and th e re st of the
A m erican citizens. The reduction in
in te re st rates has resu lted in a loss of
p u rchasing pow er by capital in these
last eight or nine y ears of at least
50 p er cent. Taxes of all kinds—in ­
come, inheritance, social secu rity and
w h atn o t—are all now so heavy th a t it
can w ell be said th a t th ey are in sub­
stan tial p a rt capital levies and we
have by no m eans seen th e end of
increases.

Inflation
At th e p resen t tim e we hear m uch
about inflation—and th a t is a problem .
Nobody can deny th a t to some degree
it is here now. Nobody w ill contest
th e statem en t th a t m ore of it w ill
occur. I believe th a t th e problem w ill
be m et and inflation w ill be lim ited.
T here are w ays and m eans for th is

to be done. In this connection I have
heard it said th a t you m eet some sales
resistance from prospective buyers
w ho are fearful th a t inflation w ill de­
stro y or seriously effect th e re tu rn s
u n d er th e policy provisions. T here is
am ple answ er to this. F irst, no indi­
vidual is sm art enough to guess ju st
w h at form or to w h at ex ten t inflation
of th e type th a t scares him , m ay take.
An in su ran ce com pany w ith its op­
p o rtu n ity for diversification of in v est­
m ent and w ith its ability to secure
th e best economic and financial b rains
in th is land, is m uch b etter qualified
to solve th is problem th an the or­
d in ary man. And, fu rth er, it has been
th e h isto ry of th e U nited States and
it w ill continue to be, th a t in this coun­
try we have periods of inflation and
deflation.
Som tim es m oney p u r­
chases less th a n others. You have
seen th a t happen in these last fifteen
y ears to a v ery m arked degree. It is
m ore th a n likely th a t th e policies
w hich you sell today and tom orrow
w ill not come due for five, ten, fifteen
or tw en ty years, and by th a t tim e we
w ill have passed th ro u g h th is presen t
inflation era and have reached a de­
flation period w hen the policy re tu rn s
w ill buy m uch m ore th a n th ey w ill
today.

Government Competition
T he ex ten t of governm ent com peti­
tion w ith p riv ate en terp rise is one for
serious concern. T he m ore of this we
have, th e less op p o rtu n ity th ere is for
v e n tu re capital to seek outlets, for
priv ate financing of any kind and th e
average investor, and th a t includes
insurance com panies, m ust invest its
m oney in governm ent bonds w hich, in
tu rn , are used to finance governm ent
business enterprises. You are m ore or
less fam iliar w ith th is situation. It
w as going on in num erous fields of
business even before th e p resen t em er­
gency, th e o u tstand ing one, of course,
being in th e line of hydro-electric
pow er to be sold in com petition w ith
th e privately-ow ned electric com ­
panies. D uring the em ergency, gov­
ern m en t particip atio n in p riv ate en-

Northivestern Banker

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Federal Reserve Bank of St. Louis

July 19^2

20
terp rise has gone to alm ost extrem e
lengths. We have seen th e govern­
m ent finance th e developm ent of fac­
tories of one kind and an o th er to
double, treble, and quadruple pro­
duction to m ake th is co u n try the
arsenal and w arehouse for th e w orld
to such an ex ten t th a t w hen this
em ergency passes, it w ill tak e m ore
th a n one m aster m ind to know w ho
ow ns w hat in the m an u factu rin g busi­
ness.
This particip atio n is not a v o lu n tary
one in the case of p riv ate enterprise,
b u t a forced p a rtn e rsh ip in w hich
those w ho p u t up th e m oney can
n eith e r exercise a voice in its adm in­
istratio n nor profit from its in v est­
m ent. T hey have b ut a one-way ticket;
th ey are the taxpayers, and th ey pay
the bills. T here has ben a m arked
drive by some of th e social-minded
th eo rists in th e adm in istratio n to in ­
crease governm ent control of business
and to inject g overnm ent into business
itself. This w en t on before the w ar.
We m ust be careful th a t th e p resent
em ergency is not used by persons of
th is type to get a hold th a t will com­
pletely th ro ttle our free institutions.

Mortgage Loans

(A sergeant speaks his mind)
“I’m going to give it to you straight.
“W e read a lot of stuff about how
civilians are fightin g ‘w ar n erves.’
Going to sh ow s...d an cin g...read in g...
having fun to relax from all the grim­
ness today and keeping up their morale.
“Sure, it’s a good idea, but don’t for­
get this. Soldiers and sailors can have
‘w ar nerves, ’too. I don’t m ean anything
to do w ith courage and stuff like that.
Believe me, they got plenty of nerve
to take i t —and dish it ou t—w hatever
the orders are.
“W h at I m ean is that soldiers, m ay­
be even m ore so, n eed sh o w s and
dancing and decent places to go w hen
th ey’re on leave. Boredom and monot­
ony during their time off are as bad
enem ies as any goose-stepping Ger­
man or Jap. W e got to fight them , too.
“T hat’s w h y everybody in this m an’s
army gives thumbs up to this USO.
T h ey’re doing a job, Mister. Fighting
a fight.
“T h ey’re putting on sw ell sh o w s ...
running club-houses...providing read­

ing m a tter.. .taking care of troops in
transit — following the flag w herever
th e arm y ord ers w ith th e ir m obile
units. T h ey ’re spelling morale in our
language w ith a capital M.
“So listen, all you folks. N ext time
you see a show or do a little rug-cutting or read a book or light a sm oke
or just sit down to play a gam e of ginrummy or listen to the radio in your
nice comfortable living room, just re­
member that there’s lots of guys in
O. D. and blue that can also use some
of same.
“It all adds up to th is ...w e like the
job the USO is doing for u s ...a n d w e
hope you on the home front keep it
rolling! ”

The dislocation or ord in ary business
w ill soon su b stan tially reduce the
n um ber of m ortgage loans available
for investm ent, except for residence
building in defense areas. T here w ill
be little new m ortgage loan business
available in any com m unity. In addi­
tion to this, it is reasonable to expect
th a t com m ercial loans by banking in ­
stitu tio n s will sh o rtly reach th eir
peak and th a t out of defense spending
the m an u factu rin g business w hich had
gone into these channels of m ortgage
and com m ercial loans will be forced to
look for o th er outlets. A bout th e only
one rem ain in g will be governm ent
deficit financing. This m oney will
necessarily be in direct com petition
w ith th e program of the insurance
com panies.
F ights, w ar program s, em ergency
spending, are alw ays expensive to th e
investor. T hey consum e w ealth, create

The w ar chest against “w ar n erves”
n e e d s r e p le n ish in g . S oon y o u ’ll be
asked to help. W ell, you heard w hat
the sergeant sa id !

★

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EMPLOYERS
MUTUAL

★

CASUALTY COMPANY
DES MOINES

S e n d y o u r c o n tr ib u tio n to y o u r
lo c a l U S O C o m m i t te e o r to N a tio n a l
H e a d q u a r te r s , U S O , E m p ir e S ta te
B u ild in g , N e w Y o r k C ity .

An Agency Company —Assets Over $4,000,000
t

L

Give to the USO

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Federal Reserve Bank of St. Louis

• Automob
Automobile Insurance
• W
oi
Workmen’s
Compensation
General Liability
• Elevator Insurance
• Plate Glass Insurance

L :

21
conditions of u n c e rta in ty and alarm ,
a rre s t norm al econom ic in tercourse,
and d iv e rt useful energy from con­
stru c tiv e to d estru ctiv e en terp rise.
T h ere has n ev er before been so elabo­
ra te and so extensive a plan w hich
m u st n ecessarily re su lt in th e d estru c­
tio n of a large p a rt of o u r n atio n al
w ealth as th a t we have before us now.
F ro m all of w h a t I have said, you
m ight w ell assum e th a t I am a pessi­
m ist, b u t I am not.

Faith in America
I th in k I am a realist. W e are at
w ar. W e have certain concrete facts
and conditions w hich are p re se n t w ith
us rig h t now. I believe th a t th e A m er­
ican people will m eet th ese problem s
as th ey have m et o th er problem s from
tim e to tim e th ro u g h o u t our natio n al
career. I believe th a t public sen tim en t
w ill force th e gov ern m en t to conduct
itself realistically. Of course, th e p en ­
du lu m m ay sw ing too fa r one w ay or
too far th e other. But, by and large,
th e A m erican people w ill from tim e to
tim e, w h en th e em ergency is p re ­
sented, d em o n strate th a t th ey have
good sense and th ereb y force o u r lead­
ers to follow along a ra tio n a l path.
W hen th is em ergency is over, w e ’ll
still have g re at cities, churches, m o­
tio n p ictu re th e a te rs, radios, m ajor
leagues and m inor leagues, w e’ll still
have all th e th in g s th a t have m ade
th e A m erican people th e g reatest race
th e w orld has ever know n.
W ith th e q ualities of an ete rn a l vigi­
lance, an e tern al activity, an etern al
fight to p reserv e rig h t h ere th e fre e ­
dom w hich we still have, th ese p ro b ­
lem s w ill be solved. I believe th a t
th is w ill occur. A nybody w ho believes
in A m erica and in its in stitu tio n s m ust
believe th a t th is w ill occur.
I w ill sum m arize it th is w ay: H ave
faith in A m erica.—T H E END.

in New Office
T he Policyholders N ational Life In ­
su ran ce Com pany of Sioux F alls is
now nicely in stalled in its new hom e
office building a t 14th an d South M ain
Street. T his b uilding w as form erly a
hospital and has fitted in adm irab ly
w ith th e hom e office’s needs of th e
com pany.
T he P olicyholders N ational Life
w rite s a g re a t deal of business th ro u g h
its m an y b a n k e r agen ts in South
D akota, N o rth D akota, M innesota, Ne­
b rask a and M ontana, and according to
Vice P re sid e n t W. H arris, th is y e a r is
seeing th e com pany m ove steadily fo r­
w ard.
Officers of th e Policyholders N a­
tio n al Life a sh o rt tim e ago also ac­
quired co ntrolling in te re st in th e N a­
tional R eserve Life In su ran ce Com­
p an y of Topeka, K ansas, and S ecretary

and T reasu rer H. O. C hapm an is in
charge of th e N ational R eserve Life
a t Topeka.

Service Roll
D isplayed in th e hom e office of the
N o rth w estern N ational Life In surance
Com pany and in tw elve of its leading

agencies th ro u g h o u t th e co u n try is a
new and strik in g plaque bearing the
com pany’s service roll of Nw N L m en
now in the arm ed forces.
P resid en t O. J. A rnold has m ailed a
photograph of th e plaque to each of
th e 49 m en w hose nam es appear on the
service roll.

A T YOUR SERVICE
Plenty of Trained Field Help
W estern M utual A gents build b u sin ess m ore easily w ith
the h elp o f trained and cap ab le field service m en, w illin g,
an xiou s and ab le to serve you.
T his E X T R A SER V IC E can m ean increased agency p roduc­
tion for you.

LEGAL RESERVE
FIRE AND AUTO POLICIES

W e ste rn Mutual
Fire Insurance C om pany
Ninth and Grand

Des Moines, Iowa

‘O v e r a T h i r d o f a C e n t u r y o

S a fe ty an d S ervice w ith S a vin g s’

O ver ami O ver Again . . .

“ALLIED MUTUAL PAYS”
R eco r d b r e a k in g n e w b u s in e s s w r itte n by
A llie d M u tu a l a g e n t s in tu r n s u g g e s t s r e c o r d
b r e a k in g c la im s p a y m e n t s a s w e ll.
E a c h m o n t h fin d s A llie d M u tu a l p a y in g
m o r e a n d m o r e c la im s .
O u r f a ir , c o n s id e r a te
c la im s e r v ic e h e lp s to b u ild f r ie n d s f o r o u r
a g e n c y f o r c e a n d f o r in s u r a n c e g e n e r a lly .

ALLIED MUTUAL
CASUALTY

COMPANY

Harold S. Evans, President
Hubbell Bldg.

Des Moines, Iowa

Northwestern Banker

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

July Í9Í2

22

HewTa>u/(tfei
More Dollars Per Man Per Month in the
PAY-ROLL WAR SAVINGS PLAN

£ | TO WIN THIS WAR, more
and more billions are needed
and needed fast—AT LEAST
A B IL L IO N DOLLARS A
MONTH IN WAR BO N D SALES
ALONE’
This means a minimum of 10 percent
of the gross pay roll invested in War
Bonds in every plant, office, firm, and
factory in the land.
Best and quickest way to raise this
money—and at the same time to “brake”
inflation—is by stepping up the PayRoll War Savings Plan, having every
company offer every worker the chance
to buy MORE BONDS.
T r u ly , in th is W ar o f S u r v iv a l,
VICTORY BEGINS AT THE PAY
WINDOW.
If your firm has already installed the

Pay-Roll War Savings Plan, now is the
time—
1. To secure wider employee par­
ticipation.
2. To encourage employees to increase
the amount of their allotments for
Bonds, to an average of at least 10
percent of earnings— because
“token” payments w ill notwin this
war any more than “token” resis­
tance w ill keep the enemy from
our shores, our homes.
If your firm has not already installed
the Pay-Roll War Savings Plan, now is
the time to do so. For full details, plus
samples of result-getting literature and
promotional helps, write, wire, or
phone: War Savings Staff, Section E,
Treasury Department, 709 Twelfth
Street NW., Washington, D. C.

U. S. W a r Saving s Bonds
This space is a contribution to A m erica’s all-out war program by
THE N O R TH W ESTER N B A N K ER

Northwestern Banker

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

July 19V2

23

Be Ptepefed to Take

Vbur Share

of Government Bonds
In May th e stock
m a rk e t decided to
pay m ore atten tio n
to good new s — as
did alm ost ev ery ­
one—and p r i c e s
clim bed. I n t h e
early w eeks of Ju n e
t h i s hopeful psy ­
JA M E S H . C L A R K E
chology continued
a n d stocks again
advanced—b u t as we w rite th is on th e
m o rn in g of Ju n e 26th a m ore cautious
a ttitu d e is apparen t.
I t w as n a tu ra l a fte r our naval vic­
to ries in th e Coral Sea and n e a r Mid­
w ay—a fte r th e th o u san d bom ber raids
of the R. A. F.—and a fte r th e R ussian
gains in th e K h arkov area—th a t a
m a rk e t w hich h ad been su rfeited w ith
bad new s w ould recover. And recover
it did from a low of aro u n d 92 on the
Dow-Jones in d u stria l stock averages
late in A pril to a high aro u n d 105 early
in June. B ut th e n th e w ar new s
tu rn e d bad.
A t the b egin n in g the D ow -Jones
average of in du strial stock s w as 100.88
—from w hich p oint it rose to a high
of 105.55 on June 8th. T hen cam e
bad n ew s—R om m el w hipp ed the Brit­
ish badly in Bibya and at th is w ritin g
is d rivin g into E gyp t—the R ussians
h ave fallen back under d eterm ined
Germ an drives — the Japanese have
tw o sm all foot-holds in our A leutian
Island s. A nd as bad as any of this
n ew s is the con tinu ed sin k in gs of
U nited N ation s’ sh ip s off our sea
coasts. So w e repeat—the m arket is
som ew h at m ore cautious, and closed
yesterd ay at 102.71. B u t there have
b een no sign s of large liq u idation —
trad ing has been ligh t—and the cou n ­
try is still confident th at before the
year is out our in creasin g production
w ill b egin to bulk large in the picture.

M ost of the talk of a short w ar
w h ich sw ep t over the co u n try three or
fo u r w eeks ago have disappeared. I f
G erm an successes continue in E g y p t
and S o u th ern R ussia w e are in fo r a
long w ar— and the ta xp a yer and banks
face large dem ands. L e t’s take a short
look at w h a t banks m a y expect in
th e w a y of g o vern m en t financing. It
has been estim ated th a t in the fiscal

The Month's Market Maneuvers
Prepared for
The Northwestern Banker

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

year ended Ju n e 30, 1943, the govern­
m en t w ill spend about $73,000,000,000.
I f additional tax levies produce the
am ount requested in the budget set up
last January, there w ill be approxim ately $53,000,000,000 to be financed
through borrowings.
The various tru s t funds of the Gov­
ern m en t w hich buy bonds should ab­
sorb about $4,000,000,000 — so the
banks, insurance com panies, corpora­
tions and individuals w ill have to take
u p a p p r o x i m a t e l y $49,000,000,000.
B reaking th is dow n fu rth e r — the
T reasu ry estim ates sales of w ar sav­
ings bonds of $12,000,000,000, sales of
tax anticipation w a rra n ts of $1,000,000,000, and additional sales of $5,000,000,000 to individuals, corporations,
m utual savings banks, insurance com­
panies, in v estm en t tru sts, charitable
funds and th e like. If these estim ates
are correct, the rem aining sum of
$31,000,000,000 is th e am ount w hich
com m ercial banks w ill be expected to
take up in th e n ex t fiscal year.
In th ese days of staggerin g figures
these m ay appear unim portant u n til
we look at w h a t com m ercial banks
hold n o w after ten years of deficit
financing. At the end of the la st calen ­
dar year h oldings of governm ent bonds
by com m ercial banks totaled about
$21,000,000,000. In short, bank h oldings
of G overnm ents m ay increase 150 per
cen t in the 1942-4.3 year, and in the fo l­
lo w in g fiscal year an oth er 60 per cent
on top of that. If the w ar should end
w ith in the n ext year—or if the g o v ­
ernm ent finds it p h y sica lly im possible
to spend the h uge am ount it contem ­
p lates—th ese figures are too high. But
in any even t, banks face trem endous
in creases in th eir g o vern m en t port­
folios and it is w ell to face it now.

Som e tim e ago in one of our articles
w e said that banks “m u st and w ill”
buy m ore govern m en t bonds in 1942.
W e received num erous protests on the
use of the w ord “m u st.” The figures,
how ever, seem to back up the sta te­
m e n t— and w h e th e r w e like it or not
w e can no m ore afford to take an aloof
position in this w ar than could General
M otors or H en ry Ford w h en th e y w ere
told to convert th eir plants.
D espite this vast financing program ,
m o n ey rates should stay low. B a n k
deposits w ill rise as deficit financing
continues— loans are declining and
this trend probably w ill continue.
There is nothing in sig h t to indicate
a m o n ey squeeze, nor any good reason
to expect any difficulties in financing
our w ar efforts. In Ju ly and A u g u st
the T reasury w il do m ore financing —
apparently about $4,000,000,000. Since
the issue in June was a seven m o n th
certificate of indebtedness, it seem s
safe to guess that the m a rket is now in
shape to take a bond issue.
C orporate bond offerings have been
in freq u en t and m ost buyers have con­
sidered those w hich w ere offered to
be too high priced. F o r instance, th e
V irginia Public Service Co. bonds and
debentures, th e R. H. Macy & Co. de­
b en tu res and sim ilar new issues are
now selling below th e ir offering prices.
The railroad m arket has b een bad—
as holders of m edium grade and de­
faulted bonds k now . The w eak n ess
started about the tim e of the Coral
Sea victory and the bom bing of Col­
ogne, and increased as good n ew s
grew . H olders of railroad secu rities
feel th a t th ey w ant to be out of them
before the w ar is over— in other w ords
a “peace scare” w as largely resp on si­
ble for the sell-off. U nited N ations’
d efeat in the past tw o w eek s—plus
con tinu ed good earnings — and, of
course, the b u yin g in of bonds sellin g
at sharp d iscou nts by the railroads
th em selv es m ay im prove the picture.
The days of su bstan tial profits in
n ew corporate offerings appear to have
passed for the foreseeable future—
loans in gen eral over the cou n try are
d eclin in g—all of w h ich brings us back
to g o vern m en t bonds. Get prepared
to take you r share.

Northwestern Banker

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

July 1942

24
of The Live Stock N ational B ank of
Chicago.
Mr. Betz w as national b ank exam ­
in er of th e S eventh F ederal R eserve
D istrict from 1930 to 1934, and before
th a t w as an officer of several banks in
Iowa. He is presid en t of Group 8

Chicago Bank Officer
David H. R eim ers, p resid en t of The
Live Stock N ational B ank of Chicago,
announces th a t P aul T. Betz, since
1934 executive vice p resid en t of th e
F irst N ational B ank of Lincoln, Illi­
nois, has been elected a vice p resid en t

We are happy to announce the
affiliation with this company of
IRA D. ALLEN
and
FRED E. GAEHNER
at Des Moines
and
R. W. MELLEM
at Mason City

P A U L T. B E T Z

WHEELOCK & CUMMINS

Horton Heads Committee
The ap p o in tm en t of H erb ert L.
H orton, p resident of th e Iowa-Des
M oines N ational B ank & T ru st Com­
pany, Des Moines, as chairm an of th e
V ictory F u n d Com m ittee for the state
of Iowa, w as announced by Clifford
S. Young, presid en t of th e F ederal
R eserve B ank of Chicago. The fol­
low ing business leaders w ill consti­
tu te th e Committee:
S. E. Coquillette, M erchants N ational
Bank, Cedar Rapids; Jam es A. Cum­
m ins, W heelock & Cum m ins, Inc., Des
Moines; V. 0. Figge, D avenport B ank
& T ru st Company, D avenport; T.
H en ry F oster, Jo h n M orrell & Com­
pany, O ttum w a; C. L. F redricksen,
Live Stock N ational Bank, Sioux City;
F. C. H enem an, F irst N ational Bank,
M ason City; Chas. S. M cK instry, N a­
tional B ank of W aterloo; E. H. Mulock,
C entral Life A ssurance Society (M u­
tu al), Des Moines; G erard S. Nollen,
B ankers Life Company, Des Moines;
J. J. Quail, Quail & Company, D aven­
port; Jo h n W. R ath, R ath Packing
Company, W aterloo; F. W. H ubbell,
E quitable Life In su ran ce Company,
Des Moines; M ax von Schrader, U nion
B ank & T ru st Company, O ttum w a.

and a m em ber of th e Council of Ad­
m in istra tio n of th e Illinois B ankers
A ssociation. W hile a stu d en t a t Grinnell College, G rinnell, Iowa, he en ­
listed in th e U nited States A rm y in
1917. Mr. Betz holds a G raduate
School of B anking certificate from R u t­
gers U niversity, R utgers, P en n sy l­
vania, and is a m em ber of th e board
of tru stees of Lincoln College and
Jam es M idikin U niversity.

In co rp o ra ted
2 0 0 E q u it a b le B ld g .
P h o n e 4 -7 1 5 9
D E S M O IN E S

STATE AND MUNICIPAL BONDS

BONDS
Public Utility
i n d u s tr ia l

H E R B E R T L. H O R T O N

R a ilro a d
M unicipal

A.GALLYNanqCOMPANY
Incorporated
100 West Monroe Street, Chicago
New York

Milwaukee

Representatives:

Waterloo

Northwestern Banker

July 19't2


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

Omaha
Des Moines

Boston
Cedar Knpids

The Iowa V ictory F u n d Com m ittee
w ill be a p a rt of th e nation-w ide m a­
ch in ery set up to prom ote th e sale of
governm ent securities, o ther th a n W ar
Savings bonds and stam ps, w hich w ill
continue to be handled by th e W ar
Savings staff w hose principal in terest
is in draw ing off as m uch as possible
of th e c u rre n t incom e of individuals.
In contrast, th e V ictory F u n d Com­
m ittees are expected to coordinate th e
w ork of th e in v estm en t b an king busi­
ness and th e com m ercial banks in
dealing w ith individuals of large re-

25
sources in th e w ay of in v estm en t
funds. E m p h asis w ill be placed on
th e sale of o rd in ary types of g o v ern ­
m en t obligations — bonds, tre a su ry
notes, tre a s u ry bills, certificates of in ­
debtedness — to w ealth y individuals,
in su ran ce com panies, and o th er groups
w ith idle funds.
T he Iow a com m ittee w ill w o rk in co­
operatio n w ith th e S eventh F ederal
R eserve D istrict V ictory F u n d Com­
m ittee of w hich Clifford S. Young is
chairm an, and F ra n c is F. P a tto n is
executive m anager.

Macfadden a Lieutenant
M any b a n k e rs in th e state of Iow a
rem em b er W ard M acfadden, th e genial
re p re se n ta tiv e of S carborough & Com­
pany, in su ran ce counselors to banks.
He w as recen tly com m issioned a
lie u te n a n t (senior grade) in th e U nited

th e Illinois B ankers A ssociation, the
follow ing resolution w as unanim ously
adopted:
W hereas, T here has come to our
a tten tio n th ro u g h th e colum ns of the
Chicago B anker, the pleasing ru m o r
th a t H arold V. Arnberg, vice p resident
and general counsel of th e F irs t N a­
tio nal B ank of Chicago, is being w ide­
ly discussed as a prospective candidate
for second vice p resident of th e A m er­
ican B ankers A ssociation a t th e next
election, and
W hereas, W e believe th a t in these
tim es of u n certain ty , th e b an k ers of
th is co u n try w ould be fo rtu n ate indeed
to obtain the services and guidance of

a m an of his o u tstanding ability, w hich
has been proved by his faithful, in ­
telligent, and energetic w ork in be­
half of the banks of th is co untry
th ro u g h com m ittees of the A ssociation,
as well as the splendid record w hich
he m ade as p resid en t of the Associa­
tion of R eserve City B ankers.
Now, Therefore, Be It Resolved,
T h at we pledge our w holehearted and
enth u siastic su p p o rt of H arold V. Amberg for second vice president of th e
A m erican B ankers A ssociation if he
can be prevailed upon to consent to
his nom ination to th is office, and we
urge o th er m em bers of the A m erican
B ankers A ssociation th ro u g h o u t the

H ogs an d
Bo ttlen ecks

L IE U T . W A RD M A C FA D D E N

S tates N aval R eserve and is attach ed
to P a tro l Squadron No. 23 som ew here
in th e Pacific. W h at an excellent nam e
for a squadron, because it w ill m ean
“skiddoo” for th e Japs!
W ard received his early tra in in g a t
th e C ontinental N ational B ank and
T ru st C om pany of Chicago an d for
m an y y e a rs rep resen ted S carborough
& Company. He is a g rad u ate of W is­
consin U niversity, a m em ber of th a t
ven erab le organization, “Sons of th e
A m erican R evolution.” His fa th e r
w as se cretary of th e N orth D akota
B ankers A ssociation for over 30 years.
Like all y oung m en in th e service,
W ard w ould be glad to h e a r from his
friends. His address is P atro l Squad­
ro n No. 23, c /o P o stm aster, San F r a n ­
cisco.

Endorse Arnberg
A t a re c e n t session of th e board of
g o vernors of th e Chicago D istrict of

r a n s p o r t a t i o n problems are mul­
tiplying. So are hogs— 62 million
pigs this spring against 50 mil­
lion last year! Secretary of Agriculture
Wickard urges farmers not to market
too many hogs between Thanksgiving
day and Washington’s Birthday, this
winter. Railroads and trucks and pack­
ing houses may not be able to take
all the hogs offered during that time,
if too many farmers wait until then to
sell. Facilities can’t be increased to

T

handle them. The danger period may
start around Thanksgiving day. The
Secretary does not advocate market­
ing light weight hogs— in fact they
should be well fed to about 250
pounds in weight—but he urges that
hogs be marketed as soon as possible
to avoid the bottleneck.
Local lending institutions discounting
agricultural paper with the Federal
Intermediate Credit Banks are being
urged to ask their farmer
FINANCING
hog-raising patrons to co­ FOOD à
operate to avoid placing
Freed om
a strain upon facilities.

THE FEDERAL INTERMEDIATE CREDIT BANKS
SPRINGFIELD, MASS.

LOUISVfLLE, KY.

ST. PAUL, MINN.

BALTIMORE, MD.

NEW ORLEANS, LA.

OMAHA, NEB.

HOUSTON, TEX.
BERKELEY, CAL.

COLUMBIA, S. C.

ST. LOUIS, MO.

WICHITA, KAN.

SPOKANE, WASH.

In fo r m a tio n r e g a r d in g th e C o n s o lid a t e d D e b e n tu r e s , is s u e d b y th e s e b a n k s ,
m a y b e o b t a in e d fro m
CHARLES R. DUN N, F is c a l A g e n t
31 Nassau Street, New York, N. Y .

Northwestern Banker

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

July Î942

26
co u n try to jo in w ith us in fostering his
nom ination.

Appointed National
Chairman
P re sid e n t R oosevelt’s recen t appeal
to th e N ational Safety Council “to
m obilize its nationw ide resources in
leading a concerted and intensified
cam paign ag ain st accidents,” and to
every citizen “to do his p a rt in p re ­
v en tin g w astage of h u m an an d m a te ­
rial resources of th e n a tio n ” h as re ­
sulted in th e form ation of th e W ar
P rod u ctio n F u n d to Conserve M an­
pow er. T his agency, launched b y a
group of th e n a tio n ’s leading business
m en and in d u strialists, w ill operate

u n d e r th e sponsorship of th e N ational
Safety Council and w ill enlist th e co­
o peration of business and in d u stry in
a national safety drive to reduce our
p re se n t alarm ing accident toll.
M inneapolis-M oline Pow er Im ple­
m en t Com pany now has, and has had
for a long tim e now, a safety program
of its ow n in charge of George B.
M illigan, safety director.

American National
Promotions
George D. B ushnell and A llen P.
S tults have been advanced to official
capacities in th e A m erican N ational
B ank and T ru st Company, both hav-

W ord has come from th e Council
th a t W. C. M cFarlane, presid en t of the
M inneapolis-M oline Pow er Im plem ent
Com pany, has been appointed national
ch airm an of th e A g ricultural M achin­
ery D ivision of th e F und, to organize
and lead th e drive for co n tributions in
th is b ran ch of industry.

G E O R G E D. B U S H N E L L

ing been elected a ssistan t cashiers by
th e directors, it is announced.
Mr. B ushnell is a g rad u ate of th e
U n iversity of N ebraska and has been
associated w ith Chicago banks since
1920, th e p ast four y ears w ith th e

H IG H L IG H T OF C H IC A G O 'S H IST O R Y
\
*

|

— Evacuation o f O ld Fort Dearborn,
August 15, 1812. In the field o f finance,
too, Chicago has her historical highlights.
Prominent among them is the founding o f
The Northern Trust Company in 1889■

HELPING O U T-O F-TO W N BANKS
DEVELOP CUSTOMER SERVICE
The remoteness of a correspondent
bank is no lim itation on the complete­
ness of service rendered to it by The
N orthern Trust Company. A connec­
tion here can prove as close and as bene­
ficial as the correspondent wishes. For,
in addition to the normal, routine
service involving day-to-day transac­
tions, this bank also makes available

to its associates highly developed fa­
cilities for special fact-finding. Such
essential information, together with
the opportunity to consult with a
friendly, com petent personnel, en­
ables correspondents to broaden their
usefulness to their own customers and
communities. Inquiries concerning a
connection here are invited
ALLEN

THE N O RTH ERN
TR U ST COMPANY
50 S O U T H LA SALLE STREET, C H I C A G O

Member Federal Deposit Insurance Corporation
★

Northwestern Banker

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

*

July 1942

P. S T U L T S

A m erican N ational. He has been ac­
tive in th e w ork of th e A m erican In ­
stitu te of B anking, having been a
m em ber of th e faculty of Chicago
C hapter for 19 years. H e is a u th o r of
“B ank O rganization and O peration,”
official textbook of th e In stitu te.

27
Mr. S tu lts en tered th e em ploy of th e
b an k in 1933 as office boy, advancing
pro g ressiv ely to his p re se n t capacity
as a loaning officer. He h as atten d ed
th e U n iv ersity of Illinois and N o rth ­
w e ste rn U n iv ersity E v en in g School of
Commerce.

R E G U L A T IO N W
(C ontinued from page 14)

ject to th e regulation, solely because
th ey m ake charge sales of listed a r­
ticles or single-paym ent loans.
A ny person affected or subject to
th e req u irem en ts of th e regulation
having questions th ereo n is urged to
com m unicate w ith th e federal reserv e
b an k or b ran ch in his territo ry , and
upon receipt th ereo f such com m uni­
cations w ill receive p rom pt attention.
—T H E EN D .

a signed sta te m e n t of th e b o rro w er on
th e form p rescribed by th e board of
g o vernors (FR-564-a) and th e reg is­
tr a n t obtaining such req u ired form
m ay rely upon th e statem en ts of th e
obligor contained th erein . I t w ould
be advisable, for th e ir ow n protection,
for lending in stitu tio n s to re ta in ex­
ecuted sta te m e n t of borro w form s
in th e ir files indefinitely, even th ough
th e loans from w hich th e y arose have
been fully paid.
Section 8 of th e reg u latio n contains
12 d ifferent exceptions and, if a p a r­
tic u la r ex tension of cred it com plies
fully w ith one of th e exceptions, th e
re q u ire m e n ts of th e reg u latio n do not
app ly thereto . A ccordingly, w h en an
exten sio n of cred it qualifies fo r ex­
ception u n d e r Section 8, it is n o t n ec­
e ssary for th e re g is tra n t to obtain any
re q u ire d form of statem en t, except
th a t Section 8 (c), applicable to in ­
sta llm e n t loans for educational, hos­
pital, m edical, d en tal and fu n eral ex­
penses, provides th a t th e loan m ust
be su p p o rted by a w ritte n statem en t
signed by th e b o rro w er certify in g to
th e facts th e re in prescribed.
T he revised reg u latio n g ra n ts a g en ­
e ra l license u n til th e ex p iratio n of th e
tim e in w hich th e board of governors
shall announce th e re g istra tio n re ­
q u ire m e n t to persons w ho becom e sub­

L E G A L DEPARTMENT
(C ontinued from page 16)
accept, claim ing the price he should be
paid w as th e h ighest m ark et price p re­
vailing after th e destru ctio n date. It
so happened th a t th e w arehousem an
continued in business and th e b an k er
felt th at, by reason of this, his claim
w as in order. Should th e b an k er p re ­
vail?
No. The N orth D akota sta tu tes pro­
vide that, w h en a w arehou se is de­
stroyed, th e w arehou sem an sh all re­
deem all ou tstan d in g storage receip ts
at the price p revailin g on the date of
destru ction and that the holders of
su ch receip ts m u st accept that price.
A South D akota attorney conducted
an extensive collection business. A
b ank in th a t state tu rn e d to him a cer­
ta in prom issory note for collection. He
collected on th e note b u t w ilfully and
u nlaw fully m isap p ro p riated th e funds
w hich cam e into his hands. Should he
be disbarred?

A well-known manufacturer was
enraged at a routine action on the
part of his bank. He told his
treasurer to close the account.
Just then, in came a letter from
one of the bank’s officers on an­
other matter: not a long letter...
not complex or brilliant...but so
sincere and reasonable that after
reading it twice the manufacturer
rubbed his chin and said to him­
self: “Well, they seem like pretty
decent people.” He decided to
have a talk with this officer about
the matter that had irritated him
... and he phoned the treasurer to
let the account stand.
★

★

★

★

★

economical handling of accounts in Chicago. We

On the basis of a study of bank
correspondence with customers
and prospects, we have just pub­
lished “Better Bank Letters,” a
sixteen-page booklet which will
be sent to any banker, without
cost or obligation; it is full of
practical suggestions, based on
actual experience, for improving
your bank’s letters.
It is simply another expression
of our basic interest in helping
banks improve their relations
with the public —an end toward
which Todd checks, letterheads,
payroll systems, checkwriting and
check signing machines are con­
stantly working.

would appreciate the opportunity of serving you.

W rite fo r y o u r fre e c o p y of
“Better Bank Letters”.

Yes. A ccording to a recent South
D akota Suprem e Court decision, facts
sim ilar to those ou tlined in the q ues­
tion are such that disbarm ent m ust
follow .— T H E EN D .

Out-of-Town Banks
O ut-of-tow n banks and bankers w ill find here
com plete banking facilities for prom pt and

C

it y

N

a t io n a l

B

ank

AND

T II U S X C O M P A N Y o f C h i c a g o

2 0 8

S O U T H

L A S A L L E

S T R E E T

{Member Federal Deposit Insurance Corporation)

Northwestern Banker

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

July 19^2

Whick 44Go vernmerits
for Your B a n k?
O

I" S E C U R I T I E S i s s u e d o r g u a r a n t e e d by

t h e l n i t e d S t a t e s t h e r e a r e n o w o n t h e m a r k e t 59 s e p a r a t e i s s u e s . Every
o n e of t h e 59 h a s i t s m e r i t s a s a f o r m o f i n v e s t m e n t , h u t a t t h e s a m e
t i m e e v e r y o n e h a s f e a t u r e s m a k i n g it m o r e or le ss d e s i r a b l e t h a n t h e
o t h e r s a s a n i n v e s t m e n t for t h e f u n d s o f y o u r b a n k . C u r r e n t p r ic e ,
m a t u r i t y d a t e , s t a t u s o f t h e i s s u e w i t h re gard t o t a x e s , l i m i t a t i o n o f
t h e a m o u n t t h a t c a n b e p u r c h a s e d — all t h e s e a n d o t h e r f a c t o r s c o m ­
b i n e t o d e t e r m i n e w h i c h G o v e r n m e n t s a r e b e s t fo r y o u r b a n k .
O u r B a n k A d v is o r y s e r v ic e h a s b e e n a b l e t o h e l p a s u b s t a n t i a l
n u m b e r o f b a n k s i n t h e s e l e c t i o n o f G o v e r n m e n t s s u i t a b l e for t h e i r
p o r t f o l i o s . O u r s e r v ic e is b a s e d (1) o n t h o r o u g h f a m i l i a r i t y w i t h t h e
s e c u r i t i e s a v a i l a b l e a n d (2) o n c a r e f u l , p a i n s t a k i n g s t u d y o f t h e i n v e s t ­
m e n t n e e d s o f t h e i n q u i r i n g b a n k . T o c o r r e s p o n d e n t b a n k s i t is a v a i l ­
a b l e w i t h o u t c h a r g e . If w e c a n h e l p y o u , w e ’ll h e g la d to h e a r f r o m y o u .
P l e a s e a d d r e s s t h e B a n k A d v is o r y D i v i s i o n .

First National sszäto Minneapolis
Membtr F idi ral D tp osit Insu ranco Corporation

M . O . G rangaard

•

C. B. B rom b ach

V ic e P r e s i d e n t

•

V ic e P r e s i d e n t

W . A . V o lk m a n n
A s s is ta n t C a s h ie r

B a n k A d v i s o r y D i v i s i o n K . T . M a r t in , A s s i s t a n t C a s h i e r

A f f ilia ted

Northwestern Banker

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

July 1942

with

f i r s t

b a n k

s t o c k

•

J . j . M a lo n e y
A s s i s t a n t C a s h ie i

•

J. M . D ow nes

c o r p o r a t i o n

29

Bank President Dies
M artin W eibye, presid en t of th e Peo­
ples State B ank of Frazee, recently
passed away.

M IN N E S O T A

Leaves Windom Bank

NEWS

The W om en’s Convention H ead­
q u a rte rs—G reysolon Rooms, Mezza­
nine F loor—w ill be at th e disposal of
the w om en th ro u g h o u t th e Conven­
tion.

R. Phil Raebe, assistan t cashier of
th e F irs t N ational B ank of W indom ,
w ho has been w ith th e bank about a
year and a half, left recently to w ork
w ith a crew of the F irs t Service Cor­
poration exam iners u n til his reclassi­
fication, w hich is expected w ith in th e
next few m onths.
Jam es W. Connelly, w hose hom e is
at Savage, M innesota, is tak in g Mr.
R aebel’s place.
Mr. Connelly w as
form erly w ith th e Security N ational
B ank of W illm ar b u t enlisted in th e
Navy. A fter serving tw o m onths at
th e G reat Lakes T rain in g School he
w as given an honorable discharge.

Increases Common Stock

New Bank Opened

The F irs t N ational B ank of Le Roy
recently increased its com m on stock
$2,000 and re tire d a like am ount of
p referred stock. T hey also paid a
cash dividend of 4 per cent. Deposits
have doubled du rin g th e past few
years. Jo h n F. H ale is p resid en t and
C. O. Strom , cashier.

The State B ank of Bellingham , Min­
nesota, opened for business recently
w ith th e following officers:
A.
L. N eum an, M orris, M innesota,
president; M. M. N eum an, M orris,
M innesota, vice president; G. W.
K irkeby, cashier; J. C. Kunde, assist­
a n t cashier.

O. G. J O N E S
P re s id e n t
R ed W ing

W IL L IA M D U NCAN, J r .
S e c re ta ry
M inneapolis

TH E M IN N E S O T A C O N V E N T IO N
(C ontinued from page 13)

Friday Morning, July 10th
Open P an el D iscussion on “R egulation
W ”, conducted by T hom as Hodgson,
a ssista n t counsel, F ed eral R eserve
B ank, M inneapolis, M innesota. T his
w ill be an o p p o rtu n ity to ask ques­
tions p e rta in in g to th e rev ised “R eg­
u latio n W ” w hich, ap p aren tly , is
som ew hat d istu rb in g and m isu n d er­
stood by m any b ankers. Mr. H odg­
son, h av in g sp en t over six m onths
recen tly in W ash in g to n as an a ssist­
a n t for th e F ed eral R eserve B oard
d u rin g th e tim e th is reg u latio n w as
being form ulated, is in position to
give a g re a t deal of a u th e n tic in fo r­
m ation on th e subject.
R eport of R esolutions Com m ittee.
E lection of M.B.A. Officers.
A djournm ent.

Entertainment
Golf T o u rn am en t—M innesota B ank­
ers T o u rn am en t w ill be held on th e
m o rn in g of Ju ly 9th, as above in d i­
cated. No greens fees. P rizes wall be
aw arded for all events. (20 or m ore
events.) Golf privilege w ill also be
g ran ted to delegates w ho a rriv e th e
afternoon of W ednesday if th ey desire
to play th a t afternoon.

For the Women
Wednesday, July 8th
Inform al M eeting—W om en’s Con­
ven tio n H ead q u arters, H otel D uluth,
in G reysolon Rooms, M ezzanine Floor.

Thursday, July 9th
M orning w ill be free for shopping.
T he ladies w ill be e n te rta in e d a t a
12:30 luncheon at N orth lan d C ountry
Club, and d u rin g th e luncheon a style
show w ill be p resen ted th ro u g h th e
co u rtesy of Orecks, Inc. R eservations
for th e luncheon should be m ade a t the
R eg istratio n Desk, H otel D uluth, no
later th a n 10:00 o’clock T h u rsd ay
m orning. A dm ission to th e luncheon
and p articip atio n in th e prize draw in g
will be by SIGNED T IC K E T ONLY.

Swift County Bankers Meet
The B ankers of Sw ift County recen t­
ly m et at th e M unicipal B uilding in
B enson in com pliance w ith sugges­
tions included in the m anual “How
B anks Can A ssist in th e Food-ForFreedom P rogram .” The follow ing
re p resen tativ es of banks w ere p res­
ent:
S tate B ank of K erhoven, K erhoven,
C. E. Melbye; F irs t State Bank, M ur­
dock, Wm. T. E strem ; Sw ift County
Bank, Benson, Oluf G andrud; F irst
State Bank, Benson, C. E. Gesme;
F a rm e rs & M erchants State Bank,
A ppleton, Mr. Schm idt.
C. E. Melbye, cashier of th e State
B ank of K erhoven, gave th e in tro d u c­
to ry rem arks, explaining th e purpose
of th e m eeting, etc., w hich w ere fol­
lowed by a general discussion and th e
passing of several resolutions.

G oes to Rice
Jam es McGee, cashier for th e past
seven y ears at th e U nion State B ank
of Sauk Rapids, has accepted a posi­
tion as cashier in th e Rice State Bank.

Bank Shows Rapid Growth
Columbia H eights State Bank, Min­
neapolis’ youngest bank, recently
reached $450,000 in total footings, and
at its p resen t ra te of grow th will soon
pass th e half-m illion m ark. H erb ert
W. Mogg, for m any y ears an insurance
a d ju ster for the W estern A djustm ent
and Inspection Co., and w ho lives in
Columbia
H eights,
w as
recently
elected vice p resident and a director
of th e bank. The bank w as organized
four and one-half years ago by H erb ert
W oodw ard and associates. Mr. W ood­
w ard is cashier of th e bank.

Nominated for Presidency
Completes 25 Years of
Service
V. F. Quist, assistan t cashier of the
Citizens S tate B ank of L afayette, re ­
cently com pleted a q u a rte r cen tu ry of
service in banking in th e village of
L afayette. He expects to add some
an n iv ersaries to th a t record before he
needs to retire.

L aw rence O. Olson, vice president
of M idland N ational B ank & T ru st
Co., of M inneapolis, is slated to become
p resid en t of th e M innesota B ankers
A ssociation d u rin g th e organization’s
fifty-third an n u al convention in Du­
lu th Ju ly 8th to 10th.
Vice p resid en t of M. B. A. d uring
th e p ast year, Olson has been nam ed
by th e nom inating com m ittee for the

Northwestern Banker

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

July 19$2

30

•MINN ESOTA

in d u strial conditions, debits to de­
p o sitors’ accounts in banks of th e
N inth R eserve D istrict for th e first
five m onths increased 18 p er cent over
1941, from $4,855,403,000 to $5,734,633,-

presidency—w hich is ta n ta m o u n t to
election.
N om inated for vice p resid en t w as
H. R. K u rth , p resid en t of Citizens
Bank, H utchinson, w hile Jam es H.
Hogan, p resid en t of K errick State
Bank, w as proposed for reelection as
tre a su re r.

000.

N inth D istrict includes M innesota,
N orth and South D akota, M ontana,
n o rth w est W isconsin and u p per M ich­
igan.
M innesota debits gained 19 p er cent,
from $3,542,202,000 to $4,232,669,000, th e
b an k rep o rted recently. F ive m o n th s’
debits rose 18 per cent in M inneapolis,
$1,824,956,000 to $2,155,110,000.

Bank Debits Increase
I 8 Per Cent
E videncing th is y e a r’s big u p tu rn
in n o rth w est business volum e, caused
by th e w ar and im proved farm and

D on't

miss the 1942

MINNESOTA BANKERS
CONVENTION
in D uluth . . .

Former Banker Deceased
M ark S. Stokes, 84 y ears old, re si­
dent of St. P aul for m ore th a n 50 years,
died in M idway H ospital th ere re ­
cently, after a sh o rt illness.
Mr. Stokes w as associated w ith th e
Second N ational B ank of St. P aul for
th ree years and th e St. P aul N ational
B ank for 23 years.

Annual Meeting Held
Stockholders of th e W o rthington
S tate B ank elected Ned Jones, Ned R.
Jones, W illie F. Rich and Donald V in­
cent to th e board of directors a t th e
an n u al m eeting held recently.
N am ed as officers of th e b ank w ere
Ned Jones, president; Donald V in­
cent, vice president; A. J. K rum pelm an, vice president; M artin H. Voss,
cashier; and Ned R. Jones, assistan t
cashier.

Accepts Cashier's Position

©

R ussell Feig, w ho for th e p ast five
years has been em ployed at th e F irs t
N ational B ank of Sleepy Eye, has
accepted a position as cashier of th e
F arm ers State Bank, at Raym ond.
Mr. F eig’s father, H erb ert Feig, Sr.,
is presid en t of th e b an k there. Mr.
Feig w ill succeed his b ro ther, H erbert,
Jr., w ho w ill take a position as a b an k
exam iner.

A n e s tim a te d 70,000,000 to n s o f iro n
o re w ill b e s h ip p e d th is y e a r

Annual A . I. B. Meeting Held

at the H ead of the Lakes, com prising
the D uluth-S uperior area, where
S even s h ip y a rd s a re o p e r a tin g
f u ll b la st

©

66 c o n c e rn s a re en g a g e d in p ro d u c in g
w a r m a te ria ls
©

T h e F IR S T A N D A M E R IC A N is ta k ­
in g a n im p o r ta n t p a r t in fin a n c in g
th e s e v ita l w a rtim e a c tiv itie s

•

We welcome you to the convention
and hope that you will find tim e to
visit w ith us w hile you are in the city.

T o t a l R e s o u r c e s $ 3 8 , BOO,0 0 0
M EM BER

N o rth w e stern B anker

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

NEWS*

FED ERA L

D E P O S IT

Ju ly 1942

IN S U R A N C E

C O R P O R A T IO N

W illiam P. T h eu rer w as elected
presid en t of W inona chapter, A m eri­
can In stitu te of B anking, at th e an n u al
ch ap ter b an q u et held at th e W inona
C ountry Club recently. Mr. T h eu rer
is a teller at th e W inona N ational and
Savings Bank. He succeeds B. F.
P erk in s of the F irs t N ational Bank,
w ho presided at the m eeting.
O ther officers elected w ere H a rry M.
K owalczyk of th e M erchants Bank,
vice president, succeeding Mr. T h eu r­
er, and E dw ard H a rtn e r of th e F irs t
N ational Bank, secretary -treasu rer,
succeeding Mr. Kowalczyk. Elected
as m em bers of th e board of governors
w ere Mr. P erk in s and Miss E lizabeth
F red in e for th e three-year term . F or
th e tw o-year term s, A lvin G rulkow ski
holds over in office and Jerom e M uras
w as elected to succeed Max B unn, w ho
is now in th e arm ed service. F o r th e
one-year term , W. M. L am b ert suc­
ceeds Mrs. L. E. A lbert and C hester
A. Fockens succeeds C larence F. W itt.
Mrs. A lbert had previously resigned
h er position and Mr. W itt is leaving
for his new position in Omaha.

31

M utual

p r o b le m s,

best

u n d er sto o d

by

ta lk in g

th em over, e x c h a n g in g id ea s, g e ttin g th e o th er f e l ­
lo w ’s v iew p o in t— th at’s w h ere C o n v en tio n s c o m e in .
T o d a y ’s p r o b le m s, m u ltip le in n a tu re, d ifficu lt o f
so lu tio n , m ust n e v e r th e le ss b e m et sq u arely.

M uch

can b e d o n e at C o n v en tio n T im e to arrive at th e
so lu tio n .
T h e D ep a rtm en t o f B an k s an d B an k ers at th e
T h e N o rth w e ste rn B a n k
B u i l d i n g — in t h e h e a r t
o f t h e b u s in e s s d is t r ic t .
The “ N o rth w e ste rn ”
B o n d D e p a rtm e n t, c o n ­
v e n ie n t ly l o c a t e d
in
t h is b u i l d i n g , b u y s a n d
s e lls U . S . G o v e r n m e n t ,
S t a t e and M u n ic ip a l
b o n d s — in q u ir i e s i n ­
v ite d .

N orth w estern , is ready to d iscu ss ch a n g in g c o n d itio n s
and c o o p e r a te w ith ou r m an y b a n k er cu sto m ers.
USE " N O R T H W E S T E R N " S E RV I C E S

D e p a r tm e n t o f B a n k s an d B a n k e rs
W m . N. Jo h n so n
V ic e P r e s id e n t

F . W . C o n ra d
A s s t. V ic e P r e s .

D . E . C r o u le y
A s s t. C a s h ie r

L. P . G isv o ld
A s s t. C a s h ie r

NORTHWESTERN NATIONAL BANK
AND TRUST COMPANY

\

M a r q u ette A v e n u e : 6 th to 7 th S tr ee ts
M IN N E A P O L IS

M e m b e r F ed era l D e p o sit In su ran ce C o rp o ra tio n

Northwestern Banker

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

July 19^2

32

ith the Colors from Minnesota
W alter

L.

K rum w iede,

teller

T riu m p h S tate Bank, T rium ph, sta ­
tioned at G reat L akes N aval T rain in g
Station, Illinois.
F rederick E rn est Stein tak in g ad ­

vanced radio course in K ansas City;
R oger P. Stein, 2nd Lt. A rm y A ir
Corps, A nchorage, A laska. Both of
these boys are sons of F red V. Stein,
cashier F irs t N ational B ank of Cold
Spring, and F red erick w as fo rm erly
a ssista n t cashier in th a t bank.
R aym ond W. K alow , form erly as­
sista n t cashier S ecurity State B ank,
W aterville, now in n aval reserv e and

★

statio ned a t W old C ham berlain Field,
M inneapolis.
F o rm er em ployes of th e F irst N a­
tional Bank, M ankato, now in arm ed
service are R ichard W. L ittle, A rm y—
F o rt Richardson, Alaska; Jam es F.
A llen sw orth ,
R eceiving
Station —
Philadelphia N avy Yard: Jam es E.
D orsey, A rm y—Camp Robinson, A r­
kansas; Richard B. Jude, A rm y—
Camp W olters, Texas; Byron ' L.
Pierce, A rm y—w hereabouts unknow n;
and George L. U rban, A rm y—Camp
B arkeley, Texas.
A. A. A nderson, executive vice p res­

★

★

B a n k s in the N o r th w e s t will
fin d c o m p l e t e f a c i l i t i e s for
prompt and economical handl i n g of t h e i r o u t - o f - t o w n
b u s in e s s at

The Empire National ßankS Trust Co.

ident L uv ern e N ational Bank, now
L ieu ten an t Colonel in Coast A rtillery
and a t p resen t recovering from a
broken leg a t B arnes G eneral Hos­
pital, V ancouver, W ashington. O ther
em ployes of th e L uv erne N ational
B ank in service are C harles N. D avis,
teller, w ith the N avy A ir Corps at
S anta Ana, California, and H enry J.
M areck, teller, now w ith th e A rm y
Q uarterm asters Corps in Texas.
A ssistant cashiers of the F irs t State
B ank of Mabel, Grant H. K ittelson and
T hom as W . H o lier have joined th e
forces of Uncle Sam. P riv ate K ittel­
son is w ith the A. E. F. in Ireland and
Mr. H olter is storekeeper, th ird class,
w ith th e U. S. N avy a t C harleston,
South Carolina.
E m ery 1). Z illgitt, teller and m an ­
ager of the insurance d ep artm en t for
th e Lake City B ank & T ru st Company,
now stationed a t Camp R oberts, Cali­
fornia. P riv ate Z illgitt is in th e In ­
fa n try Division.

The F irst N ational B ank of E veleth
is rep resen ted in Uncle Sam ’s arm ed
forces by Sgt. W illiam J. K uzm a, Camp
Polk, Louisiana, and P riv ate H arry
G roschel w ith th e Coast A rtillery a t
F o rt R ichardson, Alaska.
Those in the service from th e M er­
ch an ts N ational Bank, W inona, are
as follows: N orm an W. Schellhas,
form er teller, now Corporal in Field
A rtillery, F o rt L eonard Wood, Mis­
souri; John S. Steffen, son of P resi­
d en t S. A. Steffen an d form erly clerk
in th e bank, now Corporal A rm y A ir
Corps, Miami Beach, Florida; Roy M.
Tolleson, son of Vice P resid en t R. M.
T olleson and form erly clerk in th e
bank, p riv ate A rm y A ir Corps, M an­
chester, New H am pshire; H enry G.
H irschfeld , son of H enry H irschfeld,
is an E nsign of th e U. S. N avy on
foreign duty; Otto C. Schildknecht,
form er teller, now Corporal in th e In ­
fa n try on foreign duty; E llis Max
Bunn, form erly bookkeeper, now a
priv ate in U. S. A rm y stationed at
F o rt W arren, W yom ing; Robert S tef­
fen, son of P resid en t S. A. Steffen,
stationed a t th e N aval A rm ory, Chi­
cago; Jam es K ahl, son of A ssistant
C ashier V. A. Kahl, is now a Second
L ieu ten an t in th e A ir Corps a t B ark s­
dale Field, Louisiana.
Clifford A. Johnson, form er teller
Produce State Bank, M inneapolis,
w ith th e F inance D etachm ent, H ead­
q u a rte rs Company, Camp Forest, T en­
nessee.

S t. P a u l, M in n e so ta

Alex. Highland, President
W e w o u ld a p p r e c ia te th e o p p o r tu n ity o f se rv in g yo u .

★

*

★

Corporal D onn E. Schm id, F o rt F. E.
W arren, W yom ing, w as form erly teller
in the F a rm e rs & M erchants State
B ank of Tracy.
R ussell C. Lake, bookkeeper State
B akn of Lake P ark, enlisted in th e
N avy in December, 1941, and is now
stationed a t th e N avy R ecruiting Sta­
tion, St. Paul.

F o rm er em ploye of th e S tate B ank
of F a rib a u lt and now radio operator
w ith th e Coast G uard a t F o rt L au d er­
dale, Florida, is T hird Class Seam an
Robert W illiam Beaupre.

W . H. K ortum , cashier W estern
State B ank of St. Paul, is now a pri-

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 1942

'T'

*

33

• MINN E S O T A
vate, Chem ical W arfare, Edgewood,
M aryland.
John H. H aeck el, son of P resid en t
John F. H aeckel, F a irm o n t N ational

B ank, has en listed in th e N avy an d is
located a t th e G reat L akes T rain in g
School, Illinois. E lson A nderson, fo r­
m erly teller for th e F a irm o n t N ational,
is also tak in g tra in in g a t G reat Lakes.
Two sons of W. H. N orm an, cashier
of th e bank, have joined th e colors—
Donald en listed as p riv ate and re ­
ceived his com m ission as L ieu ten an t
sh o rtly before he sailed for F o rt
Greeley, A laska, and H ugh is an A vi­
ation Cadet, ta k in g his tra in in g at
L ak eh u rst, New Jersey. John Schrooten, teller, enlisted in th e A rm y in F eb ­
ru a ry , 1942. and is now statio n ed a t
Columbia, South Carolina.

NEWS*

B u rm eister, form er bookkeeper and
now a p riv ate stationed a t W illiam s
Field, A rizona; E lton Shroenrock,
fo rm er bookkeeper and now Staff Ser­
g eant atten d in g officers tra in in g at
F o rt M onm outh, New Jersey; Fllgin O.
Sonnem an, form er clerk now stationed
a t F o rt F rances E. W arren, W yom ing.

Corporal D onald C. T aylor, F o rt
Lewis, W ashington, form erly a book­
keeper for th e F irs t N ational Bank,
W innebago.

F alls N ational B ank & T ru st Com pany
now in the A rm ed Forces are R u ssell
Owen Grina, Sergeant Technician F o rt
L eonard Wood, M issouri; S tan ley O.
N elson, S ergeant Technician F o rt Ord,
California; Roy W estad, private, Camp
Crowder; D onald H erfindahl, P etty
Officer T hird Class, G reat Lakes N aval
T rain in g Station; an d H enry George
D ahl, son of Vice P resid en t H. G. Dahl,
priv ate F irst F inance T rain in g B ar­
racks, F o rt B enjam in H arrison, In ­
diana.

P riv ate Ferdinand N ordley, Camp
Crowder, M issouri, form erly assistan t
cashier K asson State Bank.

T hom as Jager, teller F irs t N ational
Bank, O w atonna, now stationed a t
F o rt Snelling.

F o rm er em ployes

of th e

F ergus

P eter J. B arthelm e, teller

Ossian

Jam es M atson, cashier S tate B ank
of B lom kest, tells us th a t his son,
J. A rchie M atson, is a p riv ate w ith th e
901st E n g in eers a t P end leto n Field,
Oregon.

Sgt. W allace R. V ance, fo rm erlv
te lle r F irs t N ational B ank of M arshall,
is now in th e F in an ce Office, 3rd A r­
m ored Division, Camp Polk, Louisiana.
C harles M. W hitm ore, Jr., son of
C. M. W hitm ore, cashier F irs t State

Bank. W abasha, now P e tty Officer
T h ird Class, S ubm arine D uty, New
London, C onnecticut.
Theodore S. R obertson, vice nresident Rushforcl S tate B ank, now a Cor­
poral at th e a ir base, Jefferson B a r­
racks, M issouri. P riv a te Carl A nder­
son, son of John E. A nderson, cashier,
is statio n ed a t Camp San L uis Obispo,
C alifornia.

P riv a te W illiam R. Brickson, Camp
Lee, V irginia, son of E d w in B rickson,
p resid en t A drian S tate Bank. P riv ate
B rickson w as fo rm erly clerk w ith th e
A drian State B ank arid la te r held th e
sam e position w ith th e N o rth w est Se­
c u rity N ational a t Sioux Falls.
George K. M illard, fo rm er teller
F irs t N ational B ank, In te rn a tio n a l
F alls and son of G. N. M illard, p resi­
den t of th e bank, is now statio n ed at
F o rt Shelby, M ississippi. A no th er em ­
ploye of th e b an k and son of C. M.
P rettym an, vice presid en t, is w ith th e
In fa n try “Som ew here in th e Pacific.”

Men in Service from th e N o rth w est­
e rn S tate B ank of D aw son are Sgt.
Stanford T rotter w ith th e A. E. F. in
Irelan d and P riv a te F ran cis M ulcahy,
Radio Signal Corps, state of W ash in g ­
ton.
W. E. Sevareid, a ssista n t cashier
S ecurity State B ank of K enyon, now a
p riv ate 359th In fa n try , Camp Barkeley, T exas,

The F irs t N ational Bank, W inona,
has five service stars, rep resen tin g
L ym an L. H arrington, son of H. L.
H arrington, a ssista n t cashier, T ech­
nical S ergeant now atte n d in g officers
tra in in g a t M iami Beach: D onald P.
Libera, son of John G. Libera, a ssist­
a n t cashier. Second L ie u te n a n t in th e
M arines, Quantico, V irginia: Fred

Essential for Victory
Live stock will play an important part in winning
the war and banks are called upon to assist in its
production and preparation for market.
Any bank located in a territory where live stock
is a factor can in many ways make valuable use
of our facilities.

T he

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

FEDERAL

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 1942

34

* MINNESOTA
State Bank, en listed Ja n u a ry , 1942,
now Yeom an T h ird Class, N avy Yard,
Charleston, South Carolina.
D onald T. K nutson, son of Theo.
K nutson, cashier S tate B ank of Sar-

geant, alth o u g h only 17 y ears old, en ­
listed M arch, 1941, and is now a tte n d ­
ing N avy Radio School, U n iv ersity of
Chicago.
D uluth b an k s are w ell rep resen ted in
Uncle Sam ’s A rm ed F orces as ev i­
denced by th e follow ing inform ation:
F irs t & A m erican N ational B ank,
14 em ployes: P riv a te Tver A. A nderson,
C hanute Field, Illinois; P riv a te E arle

NEWS

J. A ndree, F lig h t A, Jefferson B ar­
racks, M issouri; P riv ate B erthold J.
Brody, F o rt F ran ces E. W arren, W y­
oming; Cyril Brozie, A rm ed G uard

Schools, San Diego, California; P riv ate

•
te h a n t T hom as A. P aulson, U. S. N aval
A ir Station, Jacksonville, Florida;
T hom as M. Spencer, S quadron 44,
S anta Ana, California; and Gordon H.
W ard w ith th e U. S. M arines.

Edw ard C. B ussa, In fan try , Camp San
Durward L. Stringer, son of D. 1).
L uis Obispo, California; P riv ate N els
G. F orsm an, Camp G rant, Illinois; P ri­ Stringer, assista n t cashier N ational
v ate C larence Graliek, Officers Candi­ Citizens Bank, Canby, now Platoon

date School, Camp B arkeley, Texas;
P riv a te T rygve B. G angland, Field
A rtillery, F o rt L eonard Wood, Mis­
souri; Corporal S tew art 1). M cDonald,
Q u arterm aster M otor Depot, Stockton, California; R oderick G. M cK enzie,
U. S. S. Paducah; E nsign John C. M et­
calf (officially rep o rted m issing); Lieu-

S ergeant U. S. M arine Corps stationed
at Camp E lliott, California. S ergeant
S trin g er served seven m onths w ith th e
M arines in Iceland.

F o rm er em ployes of th e N o rth w est­
ern State Bank, D uluth, are W illiam
A7. P olsk i, Jr., S torekeeper N aval Air
Corps, Pensacola, Florida, and A. Gunnar R asm usson, p riv ate E ng in eerin g
Division, Camp Claiborne, Louisiana.
W estern N ational Bank, D uluth, has
tw o service stars rep resen tin g Donald
W. H oel, N aval A ir Base, Corpus
C hristie, Texas, and F rank P. V irant,
U. S. N aval Reserve, B rooklyn. L ieu­
te n a n t Hoel is th e son of P resid en t
A lfred H oel and Mr. V iran t w as as­
sistan t cashier of th e b ank before en ­
terin g service.
The D uluth N ational B ank is c a rry ­
ing on for th e du ratio n m inus its
president AAT. J. E klund, now L ieu ten ­
a n t Colonel 132d E ngineers, F ram in g ­
ham, M assachusetts; T eller Earl E.
Olson, now Technical S ergeant sta­
tioned in London, and T eller A rchie
Flood, Jr., now in th e W eath er Office,
Bolling Field, D istrict of Columbia.
Corporal R obert C. K rebs, stationed
“Som ew here in Irelan d ,” is th e son of
C. M. Krebs, p resid en t N orth w estern
State Bank, A ppleton.

OR 77 years M in n eap olis-M olin e and MM
D ea lers have p layed an im portan t part in
m aking A m erica n farm ers the w o rld ’s greatest
prod u cers o f fo o d and fibre.

F

Leo K lasen, form er cashier Security
S tate Bank, H oldingford, and son of
P resid en t J. B. K lasen, is now w ith
th e U. S. M arines a t San Diego, Cali­
fornia.

T h ere is today a trem en d ou s r esp o n sib ility on
our farm ers to p ro d u c e m o re fo o d and fibre to
sustain our p o p u la tio n and to b u ild u p sto c k s
o f fo o d to assure victo ry soon and a m ore p er­
m anent p ea ce. It is the p a tr io tic duty of MM
D ea lers to h elp farm ers in every w ay p o ssib le
to m eet th is r e sp o n sib ility . Y o u can h e lp y o u r
cu sto m e rs, y o u r c o u n try , a n d y o u r s e lf b y u rgin g
you r cu stom ers to re p a ir their MM m ach in es at
o n ce and to scra p a n d s e ll a ll m ach in es n o t w orth
rep airin g. U rg e u p on ev ery o n e th e im p ortan ce
of m akin g a v a ila b le to our war in d u stries scrap
m e ta l o f a ll k in d s, o ld ru b b e r , o ld rags and
w aste p a p er.

H arry N eum ann, son of W . M. N eu ­
m ann, executive vice p resid en t F a rm ­

ers State Bank, Osseo, enlisted in th e
N avy in 1940.
P riv ate D onald R. Grangaard, son of
O. F. Grangaard, presid en t Security

N ational Bank. W illm ar, is w ith th e
A ir Corns, W illiam s Field, Arizona.
P riv ate W arren B ostrom , form er clerk
in th e bank, is now in th e M arine
Corps stationed at San Diego, Cali­
fornia.

T ake the lea d in you r com m u n ity also in
u rgin g farm ers and to w n sp eo p le to grow a
V ic to r y G a rd en . V ita m in s are V ita l to V ic to r y .

BRANCHES

NEAR

S tan ley R. W heaton, form er assist­
a n t cashier F irs t N ational Bank, Ely,
en tered service June. 1941, and is now
S ergeant Air Forces Officers C andidate
School, M iami Beach, Florida.

EVERYWHERE
Invest in
Defense Bonds
and Stamps

Keep ’em

Flying!”

Minneapolis -M oline
POWER

IMPLEMENT

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 1942

COMPANY

W itfäSfciV f/S.'s.'f.

Fredrick R iegger, p riv ate U. S.
Signal Corps, Camp Crowder, M issouri,
is th e son of F. AAT. R iegger, p resid en t
F irs t State B ank. Benson. E m ployes
of th e b an k now in service are A dolph
N ovak, form erly teller, now Sergeant
A rm ored Division, Camp Polk, L ouisi­
ana, and Orion B eieli, teller, w ho w as
called for service Ju n e of th is year.
E v erett B. Olson, apprentice sea­
m an, U. S. N aval R eserves. San Diego,
(T u rn to page 36, please)

35

T w i n C ity N e w s

p resid en t
and cashier of D rovers Ex♦ change S tate B ank, South St.
Paul, and Ir v in g Todd, vice president,
F irs t N ational B ank, H astings, have
been appointed to th e hoard of th e
M ineral S prings S anatorium , Cannon
Falls, Minn.

H

G. SW AN SO N , vice

C. T. Jaffray, ch airm an of F irs t
B ank Stock C orporation, presided at
th e an n u al “re p o rt” m eeting of th e
G reater N orth D akota A ssociation in
M inneapolis early in Ju n e, w hen offi­
cers of GNDA told M inneapolis asso­
ciate m em bers th e ir accom plishm ents
last y e a r and plan s for 1942. A n u m ­
ber of M inneapolis b a n k ers w ere in ­
cluded in th e g roup atte n d in g th e
m eeting, w hile St. P au l h an k ers a t­
tended a sim ilar m eeting in St. Paul.

E xecutive com m ittee of th e V ictory
F u n d com m ittee for the N in th F ed eral
R eserve D istrict, has been nam ed by
John N. P eyton , F ed eral R eserve B ank
president. It will direct th e sale of all
w ar bonds except th e “E ” bonds and
w ar savings stam ps.
The com m ittee includes, besides Mr.
P ey to n as chairm an; H en ry J>. Thrall,
T h rall W est Com pany president, M in­
neapolis; Harold E. W ood, p resid en t
of H arold E. W ood & Co., St. Paul;
M inneapolis; and R oger B. Shepard,
S h irley S. Ford, p resid en t of N o rth ­
w e ste rn N ational B ank & T ru st Co.,
M inneapolis, and R oger B. Shepard,
St. Paul, vice ch airm an of th e M inne­
apolis F ed eral R eserve Bank.
P aul W. Loudon, p a rtn e r in Piper,
Jaffray & Hopwood, M inneapolis, is
executive m an ag er of th e fund com ­
m ittee.
A p pointm ent of tw o exam iners to
th e staff of th e F ed eral D eposit In s u r­
ance C orporation office, St. Paul, has
been announced b y R. O. B ishop,
su p erv isin g exam iner. T hey are Rob-

ert L. T olson, form erly a ssistan t cash­
ier of th e B ank of Sheridon, Mont.,
and W ilton E. L indberg, cashier of
F irs t State Bank, W heaton, Minn.

n en t roles in the v isit to th e Tw in
Cities Ju n e 20 of ten B ritish and five
A m erican w ar heroes. F o r J. Cameron
Thom son, p resident of N orthw est Bancorporation, w as general ch airm an of
th e com m ittee for th e ir appearance in
the Tw in Cities, and H en ry S. Kingm an, p resid en t of F arm ers & Me­
chanics Savings Bank, w as chairm an
of M inneapolis events.

I t ’s DR. John N. Peyton, now, if
you please.
F o r Mr. Peyton, p resid en t of th e
F ed eral R eserve B ank of M inneapolis,
w as aw arded an h o n o rary doctor of
law s degree at the an n u al com m ence­
m ent exercises of H am line U niver­
sity, St. Paul. H is w as one of five
h o n o rary degrees bestow ed by the
U niversity.

A prediction th a t th e A m erican peo­
ple, having fought for freedom , w ill
not tolerate continuance of rigid w a r­
tim e restrictio n s and reg im en tatio n
afte r victory comes, w as m ade by G.
Sidney H ouston, in v estm en t research
m anager of F irs t B ank Stock Corpo­
ration, a t a recen t m eeting of th e
M inneapolis chapter, N ational Asso­
ciation of Cost A ccountants.

M inneapolis b an k ers played prom i­

A ttractin g considerable atten tio n re-

By James M. Sutherland
Special Cor r e s ponde nt

THE NORTHERN
NATIONAL BANK
Duluth, Minnesota

Capital Funds, over $ 1 , 5 0 0 , 0 0 0 . 0 0
R eso u r ces, over $ 1 5 ,0 0 0 ,0 0 0 .0 0

M em ber Federal D eposit Insurance Corporation

Northwestern Banker

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

July 19^2

36

•MINN ESOTA
cently w as th e w ar plane ex h ib it of
Midland N ational B ank & T rust Co.

arran g ed in th e b an k to help stim u-

YOU ARE A SELECT
RISK
This m a k e s it p o ssib le for y o u to se c u re
h ig h g ra d e in su ra n c e a t ab o u t h alf the
u s u a l cost. T h o u san d s of b a n k e rs a ll o ver
th e co u n try c a rry o ur acc id e n t a n d h e a lth
in su ra n c e . You a re a b e tte r citizen w ith
y o u r incom e p ro tected . In su ra n c e p a id u p
to Dec. 15th for on ly S2.00. W rite for lit­
e ra tu re a n d a p p lic a tio n s.

NEWS-

late th e sale of w ar bonds. A scale
m odel of th e fam ous L ockheed P-38
in tercep to r p u rsu it, and p ictures of
th e production line an d various m an u ­
factu rin g processes m ade up th e ex­
hibit.
A form er governor of th e F ederal
R eserve B ank of M inneapolis, R oy A.
Y oung, has been elected p resid en t of
one of New E n g lan d ’s larg est banks,
M erchants N ational of Boston, local
friends of Mr. Young have been in ­
form ed. He headed th e M inneapolis
R eserve B ank from 1919 to 1927 before
going to W ashington as a m em ber and
later charim an of th e F ed eral R eserve
Board, a post he left in 1930 to head
th e F ed eral R eserve B ank of Boston.

W ITH TH E C O L O R S IN
M IN N ESO TA
(C ontinued from page 34)

Minnesota Commercial
Men’s Association
2550 P illsb u ry A ve.
M in n e ap o lis, M inn.

w as head bookkeeper Goodhue C ounty
N ational Bank, Red W ing.
F o rm er em ployes of th e Sw ift Coun­
ty B ank of Benson now in th e A rm ed
Forces are M arvel P aulson, C orporal
201st Field A rtillery, Camp Barkeley,
Texas; Paul Gandrud, U. S. A rm y A ir
Corps tak in g pilot in stru c to r’s course
N o rth w estern U niversity; P r i v a t e
Jam es H. Grina, A rm y A ir Base, Stockton, California; P riv ate C harles Gand­
rud, A rm y A ir Corps, w aitin g to be
statio n ed for training.
H ancock
S tate Bank, now p riv ate first class U.
S. A rm y, F o rt Snelling, M innesota.
W illis

J. D uncan, teller

Joseph G. Lutz, teller Citizens State
B ank, B rainerd, now P e tty Officer SubC haser T rain in g Division, Miami
Beach, Florida.
E very facility for your
com fort. In th e h ea rt of
th e loop. New Coffee
S hop a n d S a n d w ic h
B ar. Viking R oom and
C ocktail Lounge. C on­
necting G arage. Room s
w ith la v ato ry only $2.25
James L. Gormley • ..aymond K. Twar»so~i

The follow ing is a list of em ployes
of th e A ustin S tate B ank now in serv ­
ice: C orporal M elvin Siegfried, Coast
A rtillery, M an h attan Beach, Califor­
nia; P riv ate W illiam K eefe, A ir Corps,
S heppard Field, Texas.
Robert P.
B eaulieu, son of P. D. B eaulieu, p resi­
den t of th e bank, is serving w ith th e
A ir Corps at Jefferson B arracks, Mis­
souri.

Managers

Oscar A. Olson, Jr., son of Oscar A.
Olson, presid en t of th e F irs t N ational

B ank of B raham and fo rm erly assist­
a n t cashier of th e bank, is now sta­
tioned a t U. S. Coast G uard T raining
Station, M anhattan Beach, B rooklyn.

wm.\.

uxm ssoN
MI NNE AP OL I S

Northwestern Banker

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

Juin 1942

L ie u ten an t Byron A nderson, fo rm er­
ly cashier K anabec S tate Bank, Mora,
and son of H en ry A nderson, cashier
S tate B ank of H anska, w hen last
h eard from w as a t P o rt of E m b a rk a ­
tion, C harleston, South Carolina.
John V. P earson, form er bookkeeper
N icollet County Bank. St. P eter, w as
last h eard from at Camn Dix, New
Jersey, b u t is believed to be som e­
w h ere on th e A tlantic Ocean a t th is

tim e. He is w ith th e A rm y A ir Corps
M echanics. Roy W. H an ey, form er
teller of th e bank, is located a t U. S.
N avy D rydock R eceiving Station, Bos­
ton, M assachusetts.
Serving w ith th e Coast A rtillery in
th e W est Indies, is L ow ell Quist, son
of V. F. Quist, a ssistan t cashier Citi­
zens State Bank, Lafayette.
Glenn E. S atterly, teller F arm in g to n
State Bank, is now a private, B om bard­
m ent Squadron, Tucson, Arizona.
W. C. Krog, Jr., son of W . C. Krog,

SAFETY!
PROGRESS!
STABILITY!
T w in C ity F e d e ra l’s re so u rc es are
now in excess of $16,500,000. O ur
g ain in M em b e rs’ A ccounts la s t
y e a r w as $3,300,000 . . . the la rg e s t
such g a in re c o rd e d by any F e d e ra l
sav in g s and loan a sso c ia tio n in the
U n ite d S ta te s.
O u r c u rre n t d iv id e n d ra te is 3%
on a cc o u n ts F e d e ra lly In su re d .
On Ju n e 30th, T w in C ity F e d e ra l
p a id its 39th c o n secutive sem i­
an n u al dividend.

TWIN CITY ÎFEPHiâlL
SA V IN G S & LO A N A S S O C IA T IO N

C orner E ig h th and M a rq u e tte
M in n ea p o lis
R esources O ver $16,500,000

JAMIESON
&

CO MPA NY
Stocks
Bonds
Grain

q

OC

Cotton
Butter
Eggs

C om m odity Brokers
•
Members

N ew York Stock E xchange
and Other Principal Exchanges

e
ST. PAUL — MINNEAPOLIS

e
G overnm ent — M unicipal
Corporation Bonds
e
CHARLES C. RIEGER
Manager

Bond Department
Minneapolis — Atlantic 8235
________________ _____________________

37

•MINN ESOTA
executive vice p re sid e n t F a rm e rs &
M erchants S tate B ank of S tillw ater,
is a P e tty Officer w ith th e N avy an d
statio n ed at W ahpeton, N o rth D akota,
N aval T rain in g School.
In service and fo rm erly w ith th e
N ational B ank of Com m erce, M anka­
to, are George A. V olz, statio n ed a t
Camp Sutton, N o rth C arolina, an d
Edw ard S. B arnett, A viation Cadet a t
G ard n er Field, C alifornia.
Boys from th e F a rm e rs & M erchants
S tate B ank of M innesota are Tech.
Joseph H. M oorse, Base Infirm ary,
G eiger Field, W ashington, an d E. M.
A m undson, fo rm erly a ssista n t cashier
and d irecto r of th e 'b a n k , w ho is now
a t F o rt L eavenw orth, K ansas, a w a it­
ing m oving orders.

NEWS*

A. J. B orgerding, cashier of th e bank,

has ju s t received an ap p o in tm en t to
th e A nnapolis N aval Academy.
R ichard W . B en n ett, w ith Com m uni­
cations, F irs t M arine Brigade, is th e
son of Chas. O. B en n ett, vice presid en t
and cashier of th e U nion S tate Bank,
M ontevideo. Dick has been in th e
service since M arch, 1941, serving in
Iceland, Ireland, and presum ably w ill
see action som etim e in th e n ear
fu tu re, although his p re se n t w h ere­
abouts cannot be m ade know n.

F o rm er em ployes of th e M urray
C ounty S tate Bank, Slayton, now in

th e

A rm ed

are L ieu ten an t
Camp L eonard
Wood, M issouri, called into service
Ju n e, 1941; P riv ate H olland P. Norton
stationed Camp R obert, California.
P riv ate N orton is vice presid en t of th e
b ank and enlisted in th e A rm y M arch,
1942.
L ester H ale, form er teller Dodge
C enter S tate Bank, and now in th e
U. S. Navy, N orfolk, V irginia.

E d w in

J.

Forces

Collins,

Tech. Sgt. Gerald L eR oy Bryan, for­
m erly a ssistan t cashier S tate B ank of
Anoka, is now a candidate for com­
m ission a t Officers T raining, Camp
Davis, N orth Carolina.

F rederick D. Y ahnke, teller F irs t
N ational B ank, E lm ore, enlisted in
th e M arines Ja n u a ry , 1942, w as re ­
cen tly prom oted to corporal and is
statio n ed a t th e M arine Base, San
Diego, C alifornia.

P riv a te L loyd A. Johnson, F o rt
L eonard Wood, M issouri, and P riv a te
D onald S. H olm an, Base F in an ce De­
tach m en t, O klahom a City, w ere both
tellers of th e F irs t N ational B ank of
W indom . R u ssell E. K eller, book­
keeper, expects to e n te r th e service
som etim e th is m onth.
H ow ard F. Johnson, son of A. F.
Johnson, vice p resid en t M erchants

State B ank, N o rth B ranch, is w ith th e
U. S. N aval R eserve Corps. Mr. J o h n ­
son has an o th e r son, N ew ton A., w ith
th e F. B. I. at W ashington, D. C.
M arvin A W alseth , C aptain in th e
A ir Corps an d u n til recen tly stationed
in F airb an k s, A laska, is th e son of
H. E. W alseth , vice p resid en t and
cashier Peoples S tate Bank, F razee.
Mr. W alseth has a n o th e r son, Quentin
P., w ho is Staff Sergeant, P h o to g rap h ic
Section, K eesler Field, M ississippi.
W . J. B row ne, Jr,, son of W. J.
B row ne, p resid en t of th e W adena

County State Bank, W adena, is w ith
th e U. S. N aval H ospital Corps a t San
Diego, California. He w as fo rm erly
a ssista n t cashier of th e bank.

No address is know n a t th is tim e
for P riv a te V ictor S. Sather, fo rm erly
a ssista n t cashier F ra n k lin S tate Bank.
W illiam , son of H en ry G. Borgerding, p resid en t N o rth A m erican State

Bank, B elgrade, h as ju s t g raduated
from A rm y A ir Corps and is now a
Second L ieu ten an t. H ow ard, son of

BANKS WANTED
S e v e ra l of o u r clients a re in te re ste d in
p u rc h a sin g m inority or controlling in terests
in so u n d b a n k s . C o rresp o n d en c e is in v ited
from th o se in te re ste d in se llin g . All n e g o ­
tiatio n s strictly confidential.

i ^ I N C E T H E o r g a n iz a tio n o f th is
B a n k in 1863, it h as c o n tin u o u s ly
c a rrie d U n ite d States B o n d s as a n
in v e s tm e n t. E x p e rie n c e g a in e d in
b u y in g a n d s e llin g G o v e r n m e n t
is s u e s m a k e s t h e s e rv ic e o f o u r
B o n d D e p a rtm e n t o f special v alu e
in c o n n e c t i o n w i t h t h e is s u e s o f

U
T
A
O

N I T E D S T A T E S
R E A S U R Y B IL L S
N D C E R T IF IC A T E S
F IN D E B T E D N E S S

In q u irie s b y te le p h o n e , w ire, o r m ail
are in v ite d , a n d q u o ta tio n sheets w ill
be m ailed o n req u est.
Telephone Franklin 6 8 0 0 —LD 9 2 -9 3 -3 1 3
Teletype CG 987

The First National Bank
o fChicago

W . R. Olson Company, Fergus Falls, Minn.

Northwestern Banker

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

July 19^2

38

•
T he F irs t N ational B ank of Still­
w a te r is en titled to five service stars,
rep re se n tin g George J. P ozzini, Lt.
H ead q u arters Co., Camp C lairborne,
Louisiana; A lbert J. L ehm icke, Jr.,
A viation Cadet and son of P resid en t
A lbert J. Lehm icke; H arry S. R obert­
son, Lt. Colonel an d son of Vice P re si­
den t H. C. Robertson; P hilip E. Green,

E nsig n and son of A ssistan t C ashier

F rank P. Green; W ade A. Green, A via­

tion Cadet and b ro th e r to Philip.
F o rm er em ployes of th e F irs t N a­
tional B ank, R ochester, now w ith th e
colors are: Capt. S tan ley M. Morris,
U. S. A rm y, San Francisco, C alifornia
(teller); Lt. John B annon, Bombard-

MI NN ESOT A NE WS
m en t Squadron, H am m er Field, Cali­
fornia (m essenger); E nsign G. D avid
Schroeder, N orfolk, V irginia (book­
k eeper); Lt. Carl F rank, Camp Crowd­
er, M issouri (auditor); C alvin O. Diekhoff, U. S. Navy, p resen t address u n ­
know n (teller). Capt. Leland G. Fiegel, son of L. J. F iegel, vice p resid en t
of th e bank, is w ith th e U. S. A ir Corps
a t F o rt M eyers, Florida.
W ith th e colors from th e M idway
N ational, St. Paul, are Gerald Ferber,
Navy, California; W illiam F lesh er, Air
Corps, Scott Field, Illinois; A llan D on­
ald M cCormick, M arines, San Diego,
California; and M artin H offm an, Arm y,
F o rt Snelling, M innesota.

•
The Bloom ington-Lake N a t i o n a l
B ank of M inneapolis has th ree form er
em ployes w ith the A rm ed Forces:
W illiam M id i, Yeoman, G reat Lakes,
Illinois; W illiam Cook, Sgt. Q u arter­
m aster B attalion, Oakland, California;
and H ow ard P eterson , Corporal, F o rt
Snelling, M innesota.
F rom the Security S tate Bank, Hibbing, N orm an W alter W elo, teller, is
now a P riv ate 8th Technical School
Squadron, C hanute Field, Illinois.
O. C. K uhl, form er bookkeeper F irst
N ational Bank, W ilm ont, inducted
July, 1941, stationed now at Camp L iv­
ingston, Louisiana.
J. B rogger, p resid en t and cashier
State B ank of Butterfield, has tw o sons
in the Arm y: N eil M. B rogger, Chief
In spector u n d er W ar D epartm ent, sta­
tioned in New Orleans, and Jacob J.
Brogger, Jr., C aptain in the A rm y Air
Force, stationed at MacDill Field, F lo r­
ida.

“The B ank at the Yards”

In S te p A ll th e W a y
For alm ost a half century the Sioux City Stock
Yards and the Livestock N ational Bank h a v e grow n
and prospered together. During all these y ears, both
h a v e b een in step ev ery inch of the w ay!
Both of u s h a v e a com m on g o a l— to serve the great
Sioux City market area— and both of us are experts
on livestock and farm b u sin ess.

In addition, this

bank is w ell-equipped to h an d le ANY item s you m ay
sen d us on down-town Sioux City.

O F F IC E R S
C. L. F re d ric k s e n , P re s id e n t
M. A. W ilso n , V ice P re s id e n t
W . G. N elso n , A s s is ta n t V ice P re s id e n t
W . C. S chenk, C ash ier
H . C. L in d u sk i, A s s is ta n t C ash ier
C. L. A dam s, A s s is ta n t C ash ier
J. S. H a v er, A s s is ta n t C ash ier
Ja m e s L. S m ith , A u d ito r

D IR E C T O R S
C. R. M cK enna, P re s ., Jo h n so n B is c u it Co.
B. L. Sifford, A tto rn e y , S ifford & W ad d e n
G. F . S ilk n itte r, P re s id e n t, Sioux C ity
S tock Y ard s C om pany
C. L. F re d ric k se n , P re s id e n t
M . A. W ilso n , V ice P re s id e n t
H . C. B osw ell, S e c re ta ry -T re a s u re r,
W e s te rn C o n tra c tin g C o rp o ra tio n

F o rm er cashier of F arm ers State
Bank, Adams, now Sgt. V ance Torgerson, H ead q u arters D etachm ent, F o rt
F ran cis E. W arren, W yom ing. Sgt.
T orgerson is th e son of N. V. Torgerson, p resid en t of th e bank.
John S. H adden, clerk Citizens State
Bank, Big Lake, has been in the serv­
ice since June, 1940, now stationed in
Iceland.
H erb ert O. L ee, a form er bookkeep­
er P rin sb u rg State Bank, has been in
th e A rm ed Service of th e U nited States
since A pril, 1941, and at th e p resen t
tim e he is stationed in Ireland. Pvt.
Lee is th e nephew of S. H. Lee, cashier
of th e bank.

Bank President Dies
L oren H. Clepper, 63, a resid en t of
Rice for 35 y ears and p resid en t of the
F irs t State B ank th ere for some tim e,
recently died at his hom e after several
m onths of illness.

Veteran Banker Retires
H erm an D. Paschke, w ho has a rec­
ord of 40 y ears continuous service
w ith th e F irs t and F arm ers N ational
B ank of Blue E a rth , recen tly re tire d
from active d u ty at th e bank. Mr.
Paschke w ill continue, how ever, to
hold his position as vice p resid en t of
th e board of directors.

A ccepts Government
Position
H erm an M ittelstaedt, w ho w as con­
nected w ith th e Security S tate B ank
of W adena for m any y ears and who
has been closing th e affairs of the
bank, left recently for St. P aul w here
he has accepted a position w ith the
in te rn a l revenue departm ent.

Northwestern Banker

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

July 19J2

39

SOUTH
DAKOTA
H. N. TH O M SO N
P re s id e n t
P resh o

NEWS

South Dakota W ell Attended
(C ontinued from page 15)
he hopes to have these nine in th e fold
before th e a n n u al ABA convention th is
fall. (ABA has been cancelled.)
W ith th e th o u g h t in m ind th a t th e
increasin g w a r effort w ill m aterially
add to th e d uties of th e South D akota
bank ers, and th a t added restrictio n s
w ill be im posed on tra v e l of all kinds,
it w as voted th a t in th e ev en t it w ould
be im possible to hold a state conven­
tion in 1943, th e officers elected th is
y e a r w ill hold over u n til such tim e as
an an n u al convention can be held.
M itchell w as designated as th e nex t
convention city, in 1943 if possible, or
w h en ev er th e n ex t convention tak es
place.
C om m enting on th e good w o rk of
th e A ssociation b an k m an agem ent
com m ittee, L. T. M orris, p re sid e n t of
th e F irs t C itizens N ational B ank, W a t­
ertow n, and p resid en t of th e South D a­
kota B an k ers A ssociation, said:
“L et m e m ention th e b an k m anage­
m en t com m ittee, w hich, u n d e r th e
able ch airm an sh ip of W m. C. R em pfer
of P ark sto n , is in th e process of com ­
pletin g a su rv ey of b an k operations
for in te re ste d m em bers for th e th ird
consecutive year. The com m ittee feels
th a t such studies are even m ore im ­
p o rta n t at p re se n t w ith a n u m b er of
loan sources freezing up and g eneral
expenses m ounting. A lthough it has
n o t been definitely decided, th e com ­
m ittee m ig h t hold a series of confer­
ences for in terested b an k ers th is sum ­
m er or fall, th e w ar p erm ittin g , or re ­
quest th a t th is subject be discussed a t
th e group m eetings. L a st year, as you
w ill recall, th e resu lts of th e su rv ey
w ere given to th e b an k s in a series of
ten b u lletin s and from th e com m ents
received, th e y a p p a re n tly w ere a p p re ­
ciated by m em bers. The com m ittee
also p rep ared and p ublished d u rin g th e
y e a r a losses and recoveries b u lletin
covering a tw en ty -y ear period. The in ­
form ation contained in th a t b u lletin
should prove valuable to o u r m em bers
in m easu rin g req u irem en ts for re ­

serves du rin g th e reco n stru ctio n pe­
riod afte r th e w ar. I am sure th a t any
of us w ho experienced th e last w orld
w ar and the days follow ing it, w ill not
question the need of som ething in the
w ay of a buffer.”
One of th e m ost in terestin g talk s of
th e convention w as presented by G.
Sidney H ouston, m anager of th e in ­
v estm en t research d ep artm en t of the
F irs t B ank Stock C orporation of St.
Paul, w ho talked on “D uring and A fter
th e W ar, W h at?” The speaker believes
th a t the fears of m any w ho th in k th e
p re sen t w ar controls operating u n der
th e governm ent w ill lead to g o vern­
m en t control afte r the w ar, are gro u n d ­
less. He said we are now going th ro u g h
th e g reatest economic upheaval in the
h isto ry of our nation, w ith 30 m illion
persons being changed from peace­
tim e to w ar-tim e operations. A fter the
w ar all th is m u st be reversed, and if
chaotic conditions are to be avoided,
th e g overnm ent w ill need to exercise
controls of various kinds for a tim e.
If th e w ar ru n s th ro u g h 1943, Mr.
H ouston said, th ere w ill be a norm al
deficiency of 6 m illion autom obiles,
m aking a 1944 dem and for cars of 9%
m illion, w ith com parable shortages
p aralleled in o th er industries. T h at
w ill m ean a business boom, b u t th ere
w ill be a big headache to follow if th e
g o v ernm ent does n ot keep control u n ­
til th e co u n try is back to m ore or less
norm al peace-tim e operations.
Mr. H ouston believes we w ill have
good, average business for from five to
eight y ears afte r th e w ar. Of course
th e outlook from now on is for plenty
of taxes—our large national debt w ill
be w ith us for a long tim e to come. If
we are to m eet these taxes th e national
incom e m u st be m aintained a t a high
figure. A big n ational debt m eans th a t
b an ks w ill have to buy and hold m ore
g o v ernm ent bonds—probably up to 24
billion du rin g th e n ex t eighteen
m onths, and th ey can expect 60 to 75
p er cent in such holdings as com pared

to the early p a rt of 1942. W hat, th e
speaker asked, is th e capacity of b a n k ­
ing to absorb these bonds? T hey could
absorb, he said, 190 billion of th e n a ­
tional debt, w ith o u t h arm fu l reaction.
F rom now on, Mr. H ouston said,
loans are not likely to be in norm al
dem and, due of course to th e m any
business and economic restrictions.
A fter the w ar th ere w ill be a g reat de­
m and for m oney—new v en tu res w ill
be prom oted, ag ricu ltu re w ill prosper.
If th e U nited States takes th e position
of w orld dom ination, w hich it p ro b ­
ably will, th ro u g h w orld trad e and
o ther channels, business should be ex­
cellent for m any years.

Resigns Position
H.
W. Ouren, w ho has been field
m an for the F irs t N ational B ank of
the Black Hills, Belle F ourche, and
p rior to th a t the B utte County Bank,
since 1930, has resigned his position
th ere to accept a position as vice p resi­
dent w ith th e H arlan N ational Bank,
at H arlan, Iowa. Mr. Ouren took over
his new duties Ju ly 1st.

Bank Clearings High
M ounting totals of b ank clearings
and of th e value of livestock receipts,
indicating a bigger tu rn o v e r of cash,
featu red business in Sioux Falls d u r­
ing May, a tabulation of m onthly re ­
ports show ed recently.
C learings in May reaching $10,233,067 w ere nearly $1,000,000 m ore th an
in May, 1941, and th e value of receipts
at th e Sioux Falls stockyards w as
n early $800,000 m ore th a n th e total for
th e corresponding m onth of 1941.
B ank clearings reached a larger
figure th a n last A pril w hen th e to tal
w as $9,942,593.15.

Pioneer Banker Dies
E d J. Miller, pioneer South D akota
b an k er and tre a su re r of th e State F a ir
Board 1919-28, died recently in Santa
Ana, California.
Mr. Miller, w ell know n th ro u g h o u t
th e state, served as cashier of the
F irs t N ational B ank of H uron, from
sh o rtly a fter it w as organized in 1881
u n til it closed in 1924.

To Open Saturday Night
Both th e R apid City N ational B ank
and th e F irs t N ational B ank of th e
Black H ills w ill be open S aturday
n ights from 6:30 p. m. to 7:30 p. m.
d u rin g th e construction period of th e
R apid City air base and th e H erm osa
can tonm ent p roject if built, officials
of th e banks announced recently.
The purpose w ill be to cash payroll
checks of w o rkers w ho are unable to

Northwestern Banker

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

July 1942

40

•

SOUTH

DAKOTA

N EWS

come to tow n before th e b anks close,
officials said.
The large payroll re su ltin g from con­
stru ctio n w ork has th ro w n a h eavy
b urd en on m erch an ts in th e p ast few
w eeks and th e b anks w ill be able to
tak e care of it d u rin g th e one-hour
period on S atu rd ay nights, it w as
pointed out.

C larence K nudson has been ap ­
pointed m anager of th e Leola b ranch
of th e Ipsw ich State B ank to replace
E. W. H ilgem ann, Jr., w ho has re ­
cen tly left for th e U. S. Army.

Veteran Banker Dead

New Bank Building

F re d e ric k T. Clisby, 79, for m any
y ears connected w ith th e F irs t N a­
tional B ank of P ark er, died recen tly

T he new stream lined building of the
R apid C ity N ational B ank w as opened
last m onth. F eatu res include an
electric-eye door w hich opens itself
as a person passes th ro u g h th e v esti­
bule, fluorescent lighting, sound-wave
b u rg lar alarm s, and sep arate space for
p ersonal loan d ep artm en t to be open
outside banking hours.
T he building is of light brick, m ade
in th e Black Hills, w ith black decora­
tions. T he b ank space is 90 by 50.

lllllllllllllllllllllllllllllllllllllllllllllllll

a t his cottage at W est Okoboji Lake,
in Iowa.

To Manage Branch Bank

Former Banker Dead
F u n e ra l services w ere held recently
for E. W. Radeke, 55, w ho died sud­
denly of a h e a rt attack at his hom e in
M ilbank.
Mr. R adeke had at various tim es
been engaged in b an king operations
a t S tratford, W ebster, B rookings and
A lexandria. At th e tim e of his death

T h e r e ’s h ik in g , r id in g , fish in g ,
sw im m in g — or ju s t jo y fu l lazin g.

C o lo rfu l C elobnotions
k eep th e g a y w ester n sp irit p u l­
sa tin g . T h e B la ck H ills P a ssio n
P la y is a n o th e r a ttr a c tio n , and
th e re’s a w o n d er-sp o t th a t lifts
y o u r ey e s t o v i c t o r y — th e Shrine
o f D em o cra cy o n M t. R u sh m ore.
C o o l n ig h ts a n d N O m o sq u ito es.
F ree fo ld ers o n th e B la ck H ills
and th e e x o tic B a d la n d s.
A. H . P a n k o w , P u b licity D irector

South Dakota State Highway Commission
P ie r r e , S o u u i D a k o ta

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Federal Reserve Bank of St. Louis

July 19^2

•
he w as em ployed as farm agent for
th e special real estate dep artm en t of
th e N orth w estern M utual Life In su r­
ance Com pany of M ilwaukee, W iscon­
sin.

Half a Century
F ifty y ears ago, on Ju n e 18, 1892,
W alter G. N elson sta rte d his banking
career as an office boy to Jam es T.
W oodw ard, presid en t of th e H anover
N ational Bank. Since then, Mr. Nel­
son has been continuously in th e em ­
ploy of th a t b ank and its successor,
C entral H anover B ank and T ru st
Company.
F rom office boy ran k , Mr. N elson
w as prom oted to th e loan departm ent,
w as later m ade loan clerk in charge
of W all Street, m erchandise and p e r­
sonal loans, and th e b a n k ’s in vest­
m ents. In 1922 he w as appointed an
a ssistan t cashier and becam e an as­
sista n t vice presid en t in 1929, w hich
office he now holds.
S ecretary—I q u it m y last boss be­
cause I couldn’t tak e it.
F rien d —Necking?
S ecretary—No, dictation.
“So y o u r husb an d is one of th e big
guns of industry?
“Yes, h e’s been fired seven tim es.”

41
The program on S aturday afternoon
w as one dealing w ith chem urgy and
irrigation, both subjects of special in ­
te re st to N o rth D akota bankers. Dr.
B oris B erkm an of Chicago spoke on
“M ilkweed as a Cash-Producing, SoilB inding Crop;” Dr. H. L. W alster, dean
of ag ricu ltu re of th e N orth D akota
S tate College, talk ed on “S ynthetics;”
and K. A. Sim on, editor of th e Bis­
m arck Tribune, spoke on th e “N orth
D akota W ater C onservation P rogram .”

NORTH
DAKOTA
J . O. M IL S T E N
P re s id e n t
Belfield

NEWS

C. C. W A TTA M
S e c re ta ry
F a rg o

Milsten North Dakota President
(C ontinued from page 18)
b an k division; C. P. K jelstrup, execu­
tive vice p resid en t A m erican State
B ank, M inot, sta te b an k division; and
F rank Scott, p resid en t M erchants N a­
tio n al B ank & T ru s t Com pany, Fargo,
tr u s t division.
In h is ad d ress as p resid en t of th e
A ssociation, J. I. Hegge, am ong o th er
thin g s, suggested th a t in th e fu tu re all
g roup m eetings be held as evening ses­
sions, since those held in th e evening
la st F a ll seem ed to d raw a m uch b e t­
te r atten d an ce. T he N o rth D akota
g ro u p m eetings scheduled to be held
th is p a st Spring w ere all cancelled be­
cause of bad w e a th e r and road condi­
tions. C om m enting on th e Food for
F reedom cam paign, Mr. H egge said:
“T he drive to increase ag ric u ltu ra l
p roduction is ju s t as m uch a p a rt of
th e w ar p ro g ram as is th e drive to in ­
crease produ ctio n of planes, ships and
tan k s, or th e calling of m en to th e
colors. T he p re se n t situ atio n m akes it
im p erativ e th a t a g ric u ltu ra l produc­
tion should n o t be handicapped by
lack of adequate credit. T herefo re I
hope th a t you w ill all do y o u r p art,
w hen co n sisten t w ith safe and sound
banking, to ex ten d cred it to th e p ro ­
ducers w h e re v e r it m ay be needed.”
S everal suggestions w ere m ade by
Secretary W attam , am ong th em th e
idea th a t h is office be used as a clear­
ing house for th e b u ying an d selling
of b an k equipm ent. N ew eq uipm ent
is scarce, if available a t all; m any
b a n k e rs have eq uipm ent to sell and
if such is listed in th e office of th e Sec­
re ta ry , o th ers w ho need eq uipm ent
w ill be able to locate it. Mr. W attam
stated th a t N o rth D akota b an k ers h ad
done exceptionally w ell in th e sale of
w a r bonds, and com plim ented his a u ­
dience on th e ir efforts in th is connec­
tion. He also recom m ended a revision
of service charge schedules to conform
to present-day dem ands and condi­
tions.
J. A. Graham, sta te b an k exam iner
fo r N o rth D akota, told his audience

th a t if th e b anking system survives
th e p re se n t w ar, it w ill depend on th e
ab ility of banks to ren d er the service
to prove th a t th ey are 100 per cent
b ehind th e w ar effort. These days it
is im possible to conduct business as
u sual w ith th e profit m otive p a ra ­
m ount. R ight now, Mr. G raham said,
is a good tim e for banks to w atch th e ir
public relations program —be fair to
th e public, don’t be too greedy for
profit, m ake sure th a t all service
charges are fully explained to custom ­
ers. If banks have slow paper, now is
th e tim e to get th e note case in first
class condition, w hen th e outlook for
crops is excellent, because no one can
see v ery far into th e fu tu re and be
able to tell w h a t it w ill bring. Mr.
G raham cautioned ban k s to build up
sound credit, w ith th e tre n d tow ard
re ten tio n of reserves and sm aller divi­
dends.
R. M. De P uy, of Brookings, South
Dakota, outlined th e Food for F re e ­
dom program . Mr. De P u y is a vice
p resid en t of th e N o rthw est Security
N ational B ank of Sioux Falls, and
m anager of th e B rookings branch. Mr.
De P u y said he believed th e g reatest
o p p o rtu n ity for loans for ban k s in th e
D akotas w as to farm ers, and perhaps
th e only place for loans w ith re stric ­
tions placed on so m any o th er business
activities. To m eet com petition, he
said, it m ay be necessary to reduce in ­
te re st rates to a certain extent.
R egulation V w as explained by
H arry I. Ziem er, vice p resid en t of th e
F ed eral R eserve Bank, M inneapolis.
Since th is regulation deals largely
w ith in d u strial plants, it applies v ery
little in a state like N o rth Dakota,
w here ag ricu ltu re is predom inant, b u t
in th e larg er centers R egulation V has
been found of g reat assistance and pro­
tection to banks. Mr. Ziem er said th e
g o v ern m en t w an ts b an k s to m ake
th ese R egulation Y loans in th e ir en­
tirety , b u t w ill issue a protective g u a r­
a n ty if th e b an k desires.

A dvocating th e grow ing of m ilk­
w eed for com m ercial uses, Dr. Berkm an believes th a t applying re stric ­
tions and paying farm ers for not ra is­
ing crops, is n o t th e solution—th e
land m u st be used for some purpose
and perh ap s a new crop producing
m aterial for w hich th ere is a dem and.
Follow ing several y ears of experim en­
tation, Dr. B erkm an has found specific
uses for m ilkw eed floss, and has de­
veloped m achinery w hich w ill eco­
nom ically separate the floss from the
pod. T he floss has m any uses—for in ­
sulation, stuffing m attresses and pil­
lows, and a t p resen t Dr. B erkm an has
a con tract w ith th e g overnm ent w h ere­
by he supplies floss to be incorporated
in th e suits of navy fliers, providing
w arm th and a t th e sam e tim e th e
ability to keep th e flier afloat for m any
hours in th e case of accidental or
forced landing on w ater.
The stalks and leaves of th e m ilk ­
w eed can be adapted to m any uses,
after necessary processing, and of
course these possibilities w ill be de­
veloped later. Dr. B erkm an now has
15,000 acres of m ilkw eed grow ing u n ­
der con tract in M ichigan, and says
N o rth D akota provides ideal soil and
clim ate for m ilkw eed as a cash crop.
W ith th e useful p ro p erties of m ilk­
w eed fully developed, such a crop
produced in q u a n tity prom ises tre ­
m endous changes in m any lines of
in dustry.
K.
A. Simon told how by a system
of dams, canals and pum ps, w a te r can
be supplied to alm ost every section of
N orth D akota, w ith th e possible ex­
ception of th e so u th w estern co rn er of
the state. Such projects are being
carefully considered a t th e p resen t
tim e. Mr. Sim on reasons th a t m ore
w ater m eans b e tte r crops—m ore peo­
ple, and th e n of course b e tte r business
and increased p rosperity. — T H E EN D .

Fargo Banker Dies
A rth u r W. Fow ler, 59, vice presid en t
of th e D akota N ational B ank of Fargo,
m em ber of th e sta te Senate, form er
sta te ’s atto rn e y of Cass county and
one of N orth D akota’s m ost pro m in en t
political figures, died recen tly a t a
R ochester, M innesota, hospital.

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Federal Reserve Bank of St. Louis

July 19^2

42

C om plete
C o rresp o n d en t B anking N eeds

4T

U
N
ITEDSTA
TES
•NATIONAL:
-BANK-

MEMBER F. D. I. C

/

vi v

U N I T E D
S T A T E S
jV a iio H a l B A N K
of Omaha

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Federal Reserve Bank of St. Louis

43
Guy L. Clem ents, p resid en t of the
A m erican E xchange Bank, of E lm ­
wood, w as the m aster of cerem onies
and presen ted H. A. Schneider of
P lattsm outh, w ho served in th e capac­
ity of to astm aster for the program ,
also giving w ords of praise for Mr.
and Mrs. Ganz.

NEBRASKA
NEWS

Changes at Crete Bank
O. A. R IL E Y
P re s id e n t
H a stin g s

New Assistant Cashier
Mr. K eith A. A bart of E m m e tt has
been em ployed as a ssista n t cashier of
th e C itizens S tate B ank, C learw ater,
to ta k e th e place of J. A. V an K irk
w ho resigned recently.
Mr. A bart has been w ith the E m m ett
S tate B ank for som e tim e.

Madrid Bank Closed
The F a rm e rs State B ank of M adrid
w as closed recen tly and all depositors
paid in full. All th e assets of th e b an k
except th e b an k building have been
liquidated and th e stockholders have
been paid $150 p er sh are to date. This
b an k had deposits of $160,000 at tim e
of closing and th e fact th a t th e deposi­
to rs w ere paid, and th e fine re tu rn to
stockholders given in so sh o rt a tim e
attested to th e fine condition of th e
bank. F. W. Jackm an, w ho has been
th e cashier for th e th re e years, m ade
a fine record. The b an k w as able to
p ay dividends every y ear besides add­
ing 40 p er cent to its capital stru ctu re.
Mr. Jack m an w en t to th e A rm y last
m onth w hich is th e reason for th e
closing of th is bank.

G ives Commencement
Addresses
E. E. Jackm an, p resid en t of th e
F a rm e rs N ational B ank of G rant, gave
th e com m encem ent addresses a t Grainto n and B rule recently.

WM. B. H U G H E S
S e c re ta ry
O m aha

county and in 1919 received th e first
certificate of achievem ent for 4-H Club
w ork in th a t county. He w as a m em ­
b er of th e Innocents Society at the
College of A griculture in 1930 and has
also been v ery active in th e judging
of livestock.
Mr. W inkler is m arried and has two
children.

Serves for 25 Years
T hursday, Ju n e 11th, m arked the
tw enty-fifth an n iv ersary of H enry A.
Schneider in the P lattsm o u th State
Bank, and w hile th ere w ere few th a t
w ere aw are of the an n iversary, Mr.
Schneider received a very pleasant
and unexpected su rp rise on th e event.
Mr. Schneider, w ith several others,
had visited th e M artin bom ber plant
a t F o rt Crook and enjoyed din n er
th ere and d u rin g th e conversation
w ith th e o thers of th e party, rem arked
th a t the day m arked his tw enty-fifth
y ear in th e bank w here he is now
president. L ater in the day and as
th e b an king hours drew to a close and
th e staff w as checking up on th e d ay’s
business, a large and a ttractiv e basket
of flowers arriv ed and directed to Mr.
Schneider. The bask et w as a friendly
g reeting from A lvin S. Johnson, p resi­
d ent of th e Live Stock N ational B ank
of Omaha, who had learned of th e
a n n iv ersary and extended th e floral
g reetings and well w ishes.

Honor Carl Ganz
Winkler Joins Live Stock
A lvin E. Johnson, p resid en t of th e
L ive Stock N ational B ank of Omaha,
N ebraska, announces th e ap p o in tm en t
of C. W. W in k ler of L exington, Ne­
braska, as field rep resen tativ e.
Mr. W in k ler u n til his em ploym ent
by th e Live Stock N ational B ank w as
associated for eleven y ears as re p re ­
sen tativ e for th e St. Joseph Stock
Y ards C om pany of St. Joseph, Mis­
souri.
Mr. W in k ler is a g rad u ate of th e
N ebraska S tate U niversity, College of
A griculture, a t Lincoln. He has been
v e ry active in 4-H w o rk in D aw son

R ecently th e A m erican Legion build­
ing at Elm w ood w as th e scene of a
g ath erin g of a group of th e Cass coun­
ty b ankers and th e ir ladies as well as
several from Omaha, Lincoln and
P lattsm o u th to pay honor to Carl
Ganz, form er cashier of th e F arm ers
& M erchants B ank of Alvo, soon to
leave for arm y service, and Mrs. Ganz.
T he evening w as opened by a de­
licious d in n er served by th e ladies of
th e Elm w ood C hristian C hurch, offer­
ing a v ery pleasing m enu. The tables
w ere arran g ed w ith th e sum m er flow­
ers and A m erican flags to form the
red, w hite and blue motif.

The W eckbach fam ily, for 32 years
connected w ith th e City N ational B ank
in Crete, announced recently th a t th ey
w ere re tirin g from th e b a n k ’s service.
Mrs. E lla C. W eckbach, vice president
of th e in stitu tio n since 1935, is re tirin g
and h er son, Clark, cashier since 1936,
has resigned to en ter governm ent
service.
B.
F ra n k lin A ron and R obert K.
K uncl w ill fill th e W eckbach vacancies.
Mr. Aron, w ith 12 y e a rs’ banking ex­
perience, w ill succeed Clark W eckbach
as cashier. He has been connected
w ith the Crete State B ank and for a
sh o rt tim e has been w ith the Crete
Mills. Mr. Kuncl, fu n eral director and
ow ner of th e K uncl fu rn itu re store,
w ill be a m em ber of th e board.
Jo h n R othm uller continues as p resi­
dent of the bank, a position he has
held for th e past ten years. E. C.
Plouzek, affiliated w ith th e b ank for
19 years, continues as executive vice
president. O ther m em bers of th e
board of directors are Jo h n E. Mekota,
H erb ert G. Sm ith and R obert E. Kuncl.

Enters Omaha Bank
Bill Cox, son of Mr. and Mrs. B ruce
Cox of F o rt Calhoun, began w ork re ­
cently at th e South Omaha Savings
Bank.

New President Assumes
Duties
Clarence F. W itt, w ho w as recently
elected presid en t of, th e South Omaha
Savings Bank, has assum ed his new
duties at th e South Omaha in stitution.
Mr. W itt comes from W inona, Min­
nesota, w here he has been cashier of
th e F irst N ational Bank. He w as
affiliated w ith th a t in stitu tio n for 31
years, having served in every capacity
from m essenger to cashier.

Bank Merger
Two of th e w ell know n financial in ­
stitu tio n s of w estern Cass county w ere
g ran ted th e perm ission to m erge by
the State B anking Board recently.
T he F a rm e rs and M erchants Bank,
of Alvo, one of th e stro n g and progres­
sive banks of east N ebraska, w ill be
m erged w ith the B ank of Eagle, th e
p erm it states.
S. C. Boyles, v eteran b an k er and

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Federal Reserve Bank of St. Louis

July 19^2

44

• NEBRASKA
founder of th e Alvo financial in s titu ­
tion, now th e p resid en t of th e F a rm e rs
and M erchants B ank, ap peared before
the b an k in g officials and stated his de­
sire to re tire from th e business. Mr.
Boyles stated th a t his son-in-law, Carl
Ganz, th e cashier and active head of
th e bank, w as being called into th e
arm ed service, receiving a com m ission
as a m ajor.
The F a rm e rs and M erchants B ank
has deposits of about $160,000 and th e
B ank of E agle around $100,000.
The m erged b an k w ill be located at
E agle and will be u n d e r th e m anage­

NEWS

*

m en t of George O. U nruh, cashier,
w ho is at th e p resen t tim e operating
th e B ank of Eagle.

A ccepts Bank Post
J. F. H ladik resigned his position in
th e Pierce county tre a s u re r’s office to
accept a post at th e Cones State B ank
of Pierce.

New Fixtures installed
Som ething new and stream lined in
the w ay of b ank fixtures, m ay be seen
at th e Security N ational B ank in Su­

perior. The new type fixtures are a
radical d ep artu re from the old style
th a t have been used in banks for so
m any years th a t it is h ard to visualize
a b ank w ith o u t them . The fixtures
are entirely of m ahogany, w ith no
glass or m etal of any kind betw een
bank em ployes and custom ers.

New Bank Employe
Miss Ju n e Shellington sta rte d w ork
at th e W akefield N ational B ank re ­
cently and w ill be em ployed for th e
sum m er.

Bank Gives Service Stars

Charter No. 2 0 9

First National Bank
o f Omaha
T he
O ldest ¡National B ank
From O m aha West

The F irs t N ational B ank of Tekam ah has adopted a unique patrio tic
custom , th a t of p resen tin g th e p aren ts
of boys in th e service w ith a fram ed
“service sta r.” T here is a sta r for
every son in th e service. The sta r
appears on a black background, and is
m ade of a substance w hich causes it to
shine in th e darkness. It m akes a
v ery attractiv e em blem to hang in th e
w indow of th e soldier boys’ homes.

To Revamp Land Bank
The Om aha F ed eral L and Bank,
“u n der direction of th e F a rm C redit
Board, is being reconditioned in te r­
nally to speed up its operating m a­
ch inery,” E dw in N. Van H orne, new
presid en t of th e bank, said recently.
The first move w ill be to divide th e
four states in th e d istrict into nine
regional areas, said Van H orne, form er
Chicago and Lincoln banker.
N ebraska and Iow a w ill each oper­
ate u nder th ree area m anagers, South
D akota u n d er tw o and W yom ing
u n d er one. Men are now being chosen
to head th e areas.
Sim ilar stream lin in g has been effect­
ed in all except th re e of th e c o u n try ’s
12 farm credit setups, said V an H orne.

G oes to Elsie

Nationalized 1 863

G erald Phillips, of W allace, has ac­
cepted a position in th e Com m ercial
S tate B ank a t E lsie and com m enced
w ork last m onth.

OFFI CERS
A. H. Chisholm.........................AssistantCashier
T. L. Davis................................ President
O. H. Elliott............................ AssistantCashier
F. W.Thomas ....................Vice President
C. H. Veber............................... AssistantCashier
J. F. McDermott.............................. VicePresident
E. N. Solomon...........................AssistantCashier
C. D. Saunders.................................. VicePresident
E. F. Jepsen..............................AssistantCashier
J. T. Stewart, III.Vice Pres, and Cashier H. A. Arnsberger......... Assistant Cashier
O. H. Holquist..........................AssistantCashier
J. F. Davis.........................................VicePresident
W. E. Spear. ......................... Trust Officer
E. G. Solomon. .. .Assistant Trust Officer
Member
Federal Reserve System

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 19J2

Member
Federal Deposit Insurance Corporation

Hodges Replaces Sage
P au l Hodges has resigned as deputy
county tre a su re r of N uckolls C ounty
and w ill be em ployed in th e Security
N ational B ank in Superior, replacing
Lee Sage w ho is going into th e Arm y.
“T hey su re w ill spoil our boys in
them arm y cam ps,” said Mrs. Muggs.
“W on’t they, th o u g h ,” said Mrs.
Tuggs. “I h e a r th ey let ’em sleep till
5 every m o rning.”

45
ada, w here he had been a new spaper­
m an.
B urial w as at Omaha.
His wife, th ree dau g h ters survive.
Mr. and Mrs. R ussell A. F irestone,
w ho m oved recently to Omaha from
A kron, O., have leased th e residence
of Mr. and Mrs. A. C. P otter in Fairacres. Mr. P o tter, Omaha in vestm ent
banker, is now in W ashington, having
tak en a w ar d ep artm en t post th ere
recently.
Miss C ynthia M allory, dau g h ter of
Mr. and Mrs. R ichard H. M allory of

NLY a few days a fte r he w as
nam ed area consultant, in an ad­
visory capacity, for th e w a r savings
program , J. F ran cis M cD erm ott, vice
p resid en t of th e F irs t N ational B ank
of Omaha, w as com m issioned a lieu­
tenant-colonel to serve in th e a rm y
finance d e p a rtm e n t as w ar bond officer
for th e S eventh Corps A rea w ith h ead ­
q u a rte rs in Omaha. He w as ordered
to re p o rt Ju n e 26.
Lt. Col. M cD erm ott is N ebraska
com m ander of th e A m erican Legion.
As a re su lt of th e la te st ap p o in t­
m ent, he expected to resig n his $1 a
y e a r post as co nsultant.
H e w as g ra n te d leave of absence
from his b an k duties.
Previously, M cD erm ott w as ch a ir­
m an of th e N eb rask a w a r savings p ro ­
gram , also a $1 a y e a r job.

O

A ndrew Kopperud, fo rm er vice
p resid en t and tre a s u re r of th e F ed eral
L and B ank of Omaha, w as praised for
his q ualities of leadership by D. P.
H ogan, fo rm er p resid en t of th e land
bank, a t an Om aha C ham ber of Com­
m erce farew ell luncheon for Mr. K op­
perud.
Mr. K opperud w as h onored by th e
ch am b er’s a g ric u ltu ra l com m ittee, of
w hich he w as chairm an.
Mr. K opperud h as left Om aha to re ­
e n te r th e b an k in g business a t W atertow n, S. D.
C harles D. Saunders, vice p resid en t
of th e F irs t N ational B ank of Omaha,
has been elected a d irecto r of th e
O m aha C ham ber of Com m erce for th e
com ing year. Sam uel W. Reynolds,
vice p resid en t an d g en eral m an ag er
of th e R eynolds-U pdike Coal Com­
pany, w as elected p re sid e n t of the
cham ber.
L in n P. Campbell, p resid en t of th e
B yron Reed Com pany, w as nam ed
tre a su re r.
The new executive com m ittee of th e

cham ber includes W . A. S aw tell, p resi­
dent of th e Stock Y ards N ational Bank.
W illiam P h illip s, 53, w ho w as assist­
a n t cashier of the Omaha branch, F ed ­
eral R eserve B ank of K ansas City, for
19 y ears u n til 1938, died recen tly in
K ansas City.
F o r th e last tw o years, he w as assist­
a n t cashier of th e F ederal R eserve
B ank of K ansas City. Before m oving
to K ansas City, he w as a ssistan t cash­
ier of th e F ederal R eserve B ank at
D enver for tw o years. Born in Scot­
land, he w as educated in E dinburgh,
cam e to th e U nited States from Can-

Omaha, w as m arried to Jo h n B yron
T ru n n ell of M unster, Ind., a t Salt
Lake City, U tah, recently. The b ride’s
fa th e r is vice presid en t of th e U nited
States N ational B ank of Omaha. Miss
M allory has been em ployed in an arm s
p lan t at Salt Lake City and h e r fiance
w as doing m edical research at B righam
Young U niversity.
Mr. and Mrs. T. L. D avis and Mr.
and Mrs. L aw rence B rin ker left in
Ju n e for th e ir an n u al holiday a t Lake
M iltona, A lexandria, Minn. Mr. Davis
is presid en t of th e F irs t N ational B ank
of Omaha. Mr. B rin k er is head of th e
Om aha in v estm en t b anking firm b ear­
ing his nam e. Mr. and Mrs. Davis
planned to rem ain th ree w eeks. The
B rin k ers expected to re tu rn after th e
F o u rth of July.

cool
com fort
24 HOURS A DAY
Six floors of perfectly air-conditioned sleeping
rooms. Also the Bombay-Black Mirror Room,
the King C o le Room and the A m ber Room
Coffee Shop. All in the fashion of the 1950’s.

b

m

a

h

a

Y

Y

Y

otel
fontenelle
O M A H A ’S W E L C O M E T O

TH E W O R L D

Northwestern Banker

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

N/

Y
Y

VA

Y

'A

VA

NA

Y
July 19b2

46

Emphasis
on War
W ith th e N a tio n ’s p ro d u ctio n effort
ap p ro ach in g its peak, P h ilad elp h ia is
m ore th an ever a m aelstrom of b u si­
ness and in d u stria l activity, and it is a
focal p o in t fo r b an k in g tra n sactio n s
of every kind connected w ith w ar
activities.
To those who do b usiness in this te r r i­
to ry we offer a th o ro u g h know ledge
of local conditions, quick collections,
com plete com m ercial b an k in g facili­
ties, and an u n q u estio n ed w illingness
to serve.

...

THE . . .

I> H IILV I»IIJ»IK I\
N A T IO N A L

B A N K

ORGANIZED 1803

P H IL A D E L P H IA , PA.
R e so u r c e s ov er $ 6 5 0 , 0 0 0 ,0 0 0

M e m b e r of F e d era l D e p o s it In su ran ce C o r p o ra tio n

H arold C. E llio tt, em ployed in th e
real estate d ep artm en t of th e F ederal
L and B ank of Omaha, has been elected
secretary -treasu rer of th e Alvo, G reen­
wood, N ehaw ka and Otoe F arm Loan
A ssociations, w ith h ead q u arters at
Alvo, Neb., to succeed Carl Ganz, Alvo
banker, w ho en tered arm y service.
K enn eth G. H arvey, presid en t and
ow ner of th e G reat W estern Finance
C orporation, is new executive vice
presid en t and d irector of th e Douglas
C ounty B ank of Omaha. Mr. H arvey
is also an attorney. He has lived in
Om aha 22 years. T he executive vice
presidency is a new post a t th e bank.
Clarence F. W itt, new p resid en t of
th e South Om aha Savings Bank, took
up his new duties. He came from
W inona, Minn., w here he w as cashier
of th e F irs t N ational Bank, w ith w hich
he w as associated 31 years. He is ac­
tive in th e E lk s an d K nights of
Columbus.
A. C. “Cub” P otter, Om aha in v est­
m en t b an k er w ho now is in a w ar de­
p a rtm e n t position in W ashington,
u n d erw en t a m ajor operation recently
in a W ashington hospital.
R ay R. R idge, a vice presid en t of th e
Om aha N ational Bank, is th e new
presid en t of th e Omaha R otary Club
for 1942-43.
Ralph Li. Staple, 79, an atto rn e y for
th e F ederal L and B ank of Omaha and
a resid en t of Om aha 25 years, died re ­
cently. Two daughters, tw o sons su r­
vive.
He w as a form er county clerk and
county atto rn e y of W heeler county,
N ebraska, and served eight y ears as
county judge and tw o term s as county
atto rn e y in V alley county, N ebraska.

A llan Tukey, Omaha insurance m an,
w as eelcted a ch airm an of th e M etro­
politan U tilities D istrict Board re c e n t­
ly and A. A. Low m an, presid en t of th e
N o rth w estern Bell T elephone Com­
pany, w as seated as a director in a re ­
organization resu ltin g from resig n a­
tion of W . M. M illard, Jr. Mr. M illard,
vice presid en t of the Omaha N ational
Bank, is now in arm y service.
New directors of th e Om aha B etter
B usiness B ureau include E llsw o rth

BANKS

Bought and Sold

Confidentially and with becoming dignity

BANK EMPLOYEES PLACED.
37 Years Satisfactory Service.

THE CHARLES E. WALTERS CO.
OMAHA. N E B R A S K A

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 1942

47
M oser, vice p resid en t of th e U nited
States N ational Bank, an d W illiam
S aw tell, p re sid e n t of th e Stock Y ards

N ational Bank.
N ational S ecurity F ire In su ran ce
C om pany of Omaha, w hich recen tly
elected E d g ar M orsm an, III, as p resi­
dent, to succeed th e late W . B. T. Belt,
reelected as directors, for one year,
H. M. B u sh n ell, p resid en t of th e
U nited States N ational B ank, and
F o rd E. Hovey, p resident, Occidental
B uilding and Loan A ssociation of
Omaha.
C onsum ers P ublic Pow er D istrict of
Colum bus, Neb., recen tly announced
it had m ade a form al offer of $40,680,000 to A m erican P ow er an d L ight
C om pany of N ew Y ork for N ebraska
P ow er C om pany of Omaha.
C onsum ers asked H. L. Aller, p re si­
d en t of A m erican P ow er and L ight, to
no tify th e city of Om aha of th e offer.
M em bers of th e Om aha city council
issued a sta te m e n t saying th ey h ad
appointed a ten-m an com m ittee to
w o rk w ith th e city council on a stu d y
of th e pow er situation. C om m ittee
m em bers include W. D ale Cark, p re si­
d en t of th e Om aha N ational Bank;
H. M. B u sh n ell, p resid en t of th e
U nited States N ational B ank, and T. L.
D avis, p resid en t of th e F irs t N ational
B ank of Omaha.
Om aha b an k clearings for th e Me­
m orial Day holiday w eek show ed a
51.8 p er cent increase over th e sam e
w eek last year, th e sh a rp e st advance
of an y city in th e country, according
to a D un and B rad street rep o rt.
Om aha clearings for th e w eek w ere
$45,764,060.92 ag ain st $30,148,253.74, for
th e sam e w eek last year, according to
th e Om aha C learing H ouse A ssocia­
tion.
The large Om aha increase, it is be­
lieved by some bank ers, p robably w as
a reflection of large sum s paid out in
connection w ith w ar p lan ts in th is
te rrito ry .
S o W h a t?
Blonde—The p rosecuting atto rn e y
em b arrassed m e v ery m uch d u rin g th e
trial.
A dm irer—By ask in g w h at you w ere
doing th e n ig h t of th e crime?
Blonde—No, by ask in g me w h a t I
w as doing th is com ing week-end.
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.

In Locals

HROUGH a series of conferences
betw een contractors at th e Lincoln
arm y air base and m em bers of a cham ­
ber of com m erce com m ittee, it is be­
lieved th a t the problem of base w o rk ­
ers cashing th e ir checks has been
p a rtly w orked out.
The plan devised provides for con­
tra c to rs paying th e ir w orkers on W ed­
nesday evening and T h u rsd ay m o rn ­
ing, th e system followed in m ost cities
w here sim ilar situations have had to
be met. E xceptions, a survey by the
com m ittee has found, w ere a t W ichita
and in tow ns th e size of Wahoo.

T

In these la tte r places th e banks h a n ­
dle the checks because of th e m er­
chants not being able to acquire the
m oney needed. W ichita had 50,000
em ergency w orkers.
The plan in Lincoln opens th e w ay
to th e banks cashing m any of th e
checks du rin g th e reg u lar opening

hours. A fter th ey close, stores w ill be
able to get m oney u n til 4 p. m. each
day, to handle th e checks, especially
on W ednesday and T hursday.
On
T hursdays th e stores are open at night.
The one fly in th e ointm ent is th a t
th e I. C. U. com pany, w hich em ploys
the largest n u m ber of m en at th e base,
w ould not agree to pay earlier th an
Saturday.
The n u m ber of m en w orking at th e
base varies. R ecently a fair estim ate
w as 4,000. T hey receive from $50 to
$60 a w eek for unskilled w ork, and
around $100 a w eek for skilled labor.
W ells believed $70 a w eek average
w ould be “about rig h t.” T h at m eans
a payroll of approxim ately $280,000
p er week.
The N ebraska State B anking D ep art­
m ent has announced paym ent of a
final dividend to depositors of th e
failed Citizens State B ank of Peru.

Quality—fir s t and Last
In all its relations with clients, the CONTINENTAL
NATIONAL BANK em p h asizes quality oi service.
O nly thus do w e b eliev e a bank can do
constructive work in its city and state. This
principle w ill guide us in the future a s in the past.
TRY CONTINENTAL SERVICE IN LINCOLN!

(Co n t i n e n t a l N

a t io n a l

^ANK
f

L IN C O L N
Member Federal Deposit Insurance Corporation

___________ O M A H A ____________________________

Northwestern Banker

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

July 1942

48

%
FEEDER LOANS
No doubt there will be a sp ecial dem and
for Feeder Loans this fall.
If y o u h av e excess dem and from y o u r
customers - - write us.

Us Y ou r

O u t-o f-T o w n I te m s for

LIVE STOCK NATIONAL BANK
OMAHA
R esources O ver $23,000,000.00
M em ber F ederal Reserve B a n k
M em ber F ederal D ep o sit In su ran ce C orporation

Northwestern Banker

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

July 1942

49

IO W A

A. T. D O N H O W E
P re s id e n t
D es M oines

Makes Final Payment
A1 W iese, cashier of th e Mt. A u b u rn
Savings B ank, announces th a t his
b an k is now m aking final p ay m en t of
its tru s t certificates. T hey have paid
100 p er cent of th e principal, and have
added 2 p er cent for in terest, m aking
a total p ay m en t of 102 p er cent.

Pioneer Banker Dies

N EW S

FR A N K W A R N E R
S e c re ta ry
D es M oines

n e n t featu re of th e b a n k ’s custom er
relation program .
T his aw ard idea w as originated by
H. R. Young, form er cashier of th e
bank, w ho is now vice p resident of
th e City N ational B ank of W ichita
Falls, Texas. Mr. Young is also a
fo rm er presid en t of th e Iow a B ankers
Association.

C.
J. Sherm an, 82, re sid e n t of W es­ County Bankers Meet
The an n u al m eeting of the W ebster
ley for m any years, died recen tly a t
C ounty B ankers A ssociation w as held
his hom e there.
recently. The m eeting followed a 6:30
Mr. S herm an w as one of th e c h a rte r
d in n er at th e W ahkonsa H otel in F o rt
m em bers of th e E xchange S tate B ank
Dodge.
of W esley w hen it w as organized in
The new officers elected for th e com­
1912, and for m any y ears w as p resi­
ing y ear w ere C. W. Gadd of th e State
d e n t of th a t in stitu tio n .
B ank of F o rt Dodge as president,

Roscoe L eonard of th e F irs t N ational
B ank of D ayton as vice president, and
A. A. G erken of th e S tate B ank of
F o rt Dodge as secretary and tre a s­
urer.
T he an n u al W ebster C ounty B ank­
ers Picnic w ill not be held th is year
because of th e w ar, it w as decided.
R egulation W as revised w as dis­
cussed at length.
T he W ebster C ounty ban k ers are
cooperating w ith th e W ebster County
V ictory League to elim inate individual
drives for funds by each W ar Service
O rganization, th e idea being to have
one energetic drive w hich all organi­
zations w ill benefit from and avoid th e
nuisance and duplication of individual

campaigns.

Hopkinton Bank News
Mr. and Mrs. E v e re tt L. W right,
H opkinton, re tu rn e d from a trip
through th e so u th ern states and a visit
to New Orleans, th e early p a rt of June.
T his trip w as a celebration honoring
th e ir te n th w edding anniversary. Mr.
W right is p resid en t of th e Citizens
State Bank, H opkinton.
Plans are being m ade by th e officers
and directors of th e Citizens State
Bank, H opkinton, Iowa, to open an
office at Ryan, Iowa. T he date of th e
opening has been set for Ju ly 18th.

Celebrates 20th Anniversary
R. W. W yant, cash ier of th e S ecurity
Savings B ank of Larchw ood, rep o rts
th a t his b a n k has ju s t finished its
20th y ear of co ntinuous operation.
D uring th is tim e th e re have been no
tr u s t fund, no w aiv ers and no stock
assessm ent.
The p re se n t to tal re ­
sources of th is bank, th e oldest in
Lyon County, are $478,000.
Mr. W y an t w as one of th e original
directors of th e bank, and took over
its direct m anagem ent on May 21, 1931.

Iowa - Des Moines Annual Picnic

Final 20 Per Cent
Dividend Paid
Carl W. Laxson, p resid en t of th e
S tate B ank of E arlville, announces
th a t a final 20 p er cent dividend has
been paid on th e b a n k ’s tr u s t certifi­
cates. T his m akes a full p ay m en t of
th e $190',875.74 issued in tr u s t certifi­
cates.

Award Student Prizes
The A m erican N ational B ank of
A rlin g to n , Iowa, p resen ted to th e
h ig h est ra n k in g stu d e n t in each of
th e four high school grades in A rling­
ton and Stanley a prize of $5. The
aw ards w ere based on grades for th e
1941-1942 school y e a r and it is ex­
pected th a t th e prize w ill be a perm a-

Officers and employes of th e Iowa-Des M oines N atio n al B ank and T ru st Company
held th e ir annual p a rty last m onth a t W ayside Inn. Chicken— and much of it—
w as the piece de resistance. One hundred and seventy-five w ere present fo r the
occasion. Follow ing dinner, games and dancing w ere enjoyed w ith special prizes
consisting of W ar Bonds and D efense Stam ps. Lorran “ B londy” Ewing was
chairm an of th e com m ittee in charge of th e p a rty . In the p icture above is a
picnic group w atch in g th e games. Those seated, from le ft to rig h t, are Charles
McCoy, Victor Pulis, Clarence Diehl, Clyde Doolittle, John deJong, Verne
Bonnett and Orville M. Garrett.

Northwestern Banker

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

July 194-2

<5^0- 1 9 1 7

STATEMENT OF CONDITION
At the Close oj Business June i, iQiy
R E S O U R C

E S

Loans and Discounts................................................................................................................................$ 574,855.39
Other Securities.........................................................................................................................................
41,683.07
Furniture and F ix tu res..........................................................................................................................
7,034.80
Cash and E xchange................................................................................................................................ 1,062,362.02
$1,685,935.28

L I A B I L I T I E S
Capital ........................................................................................................................................................ $1,000,000.00
Surplus ......................................................................................................................................................
200,000.00
Undivided P r o f its ....................................................................................................................................
581.24
Deposits ......................................................................................................................................................
485,354.04
$1,685,935.28

D I R E C T O R S ,

1 9 1 7

ASHTON CLEMENS

B. F. KAUFFMAN

President, Standard Glass and Paint Co.

President

DR. O. J. FAY

H. H. POLK

Surgeon

U. S. Arm y

C. L. HERRING

R. R. ROLLINS, Sr.

President, Herring Motor Co.

Real Estate

J. W. HOWELL

FRED W. SARGENT

V.P., Warfield, Pratt & Howell

Attorney

S. L. SHEUERMAN


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

mm

V.P., Capital City Woolen Mills

STATEMENT

OF

CON DITION

At the Opening of Business June i , 1942

RESOURCES
Loans and Discounts...............................................................................
O ther Securities........................................................................................
Stock in Federal Reserve B ank............... , \ ........................................
Real E sta te ................................................................................................
Furniture and F ix tu res..........................................................................
Municipal B onds.....................................................................................
U. S. Government B onds.....................................................................
Cash and E xchange................................................................................
Customer Liabilities on Letters of Credit and Trade Acceptances

............................... $10,058,704.72
..............................
786,473.21
..............................
45,000.00
..............................
7,043.10
..............................
55,188.50
..............................
20,073.07
$10,179,953.31
8,309,567.47
18,489,520.78
..............................
8,375.00
$29,470,378.38

LIABILITIES
Capital ......................................................................................................
P referred ............................................................................................
Common ..............................................................................................
Surplus ....................................................................................................
Undivided P rofits...................................................................................
Reserve for Taxes and In terest...........................................................
Other R eserves.......................................................................................
Deposits ....................................................................................................
Bank’s Liability on Letters of Credit and Trade Acceptances .

.........................$ 1,000,000.00
$100,000.00

900,000.00
........................
500,000.00
........................
448,591.47
.......................
36,304.36
........................
227,851.69
........................ 27,249,255.86
........................
8,375.00
$29,470,378.38

DIRECTORS,

1942

PAUL BEER

B. F. KAUFFMAN

President, The Flynn Dairy Co.

President

DR. O. J. FAY

E. T. MEREDITH, J r.

Surgeon

V.P., Meredith Publishing Co.

J. G. GAMBLE

SHIRLEY PERCIVAL

Attorney

Pres., Green Colonial Furnace Co.

J. W. HOWELL

S. C. PIDGEON

President, IVarfield-Pratt-Hozuell Co.

Vice President

F. W. HUBBELL

RUSSELL REEL

President, Equitable Life Ins. Co. of Iowa

President, Yellow Cab Co.

J. W. HUBBELL

R. R. ROLLINS

Pres., F. M. Hubbell Son & Co., Inc.

Vice President

JOHN D. SHULER
President, Shuler Coal Co.

Member Federal Deposit Insurance Corporation


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

FQg^ICTORY
BUY

UNITED
STATES

52
1942. He has recently been tra n sfe rre d
to C alifornia from Camp W olters,
Texas.
George W. Grant, son of W. N. Grant,

vice p resid en t Peoples T ru st & Savings
Bank, Indianola, has been in th e serv ­
ice since June, 1941. He is now located
at Camp Caron, Colorado.

The position w ill be aw aiting him upon
his re tu rn .
P riv ate Janies H . K oons, son of V. D.
K oons, p resident F irs t S tate Bank,

A sa R. A rnold, a ssista n t cashier
F irs t N ational B ank, Klem m e, now a
C orporal 3rd In fa n try , Camp Barkeley, Texas. He is th e son of F. A. A rn­
old, p resid en t of th e bank.

B ritt, now stationed in M elbourne,
A ustralia, in a recen t le tte r states th a t
he has seen aerial com bat service at
P o rt M oresby and over Jap bases in
New G uinea aboard U. S. F lying F o rt­
ress acting as portfolio m an.

George A. C ham elicek, Corporal, In ­
fan try , statio n ed in Ireland, w as fo r­
m erly teller of th e U nited State Bank.

E rn est W ayne P ow ell, form er book­
k eeper State' Savings Bank, C antril,
w as called to A rm y Service Jan u ary ,

F o rm er em ploye of the W oodbury
C ounty Savings Bank, Sioux City, P ri­
vate Robert H. Drain, U. S. M arine
Corps, San Francisco.
K enneth L. In geb retson , form er
bookkeeper F irs t S tate Bank, T h o rn ­
ton, and son of M elvin A. In geb retson ,
p resid en t of th e bank, is now a Cor­
poral in th e A rm y a t Camp F o rrest,
Tennessee.
P riv ate Leonard Long,
son of Vice P resid en t A nd rew Long,
is now a m em ber of th e M ilitary Po­
lice in th e H aw aiian Island. Lloyd E.
Jam es, son of P au l L. Jam es, cashier,
now Staff S ergeant in M arines “som e­
w here in th e Pacific.” Sgt. Jam es w as
erroneously rep o rted as one of those
captured at W ake Island.
Max T. R oehholz, Staff Sergeant
w ith th e A rm y A ir Force O bservation
Squadron a t E llington Field, Texas, is
th e son of Clyde R ochholz, cashier
E xchange B ank of Adair.

A Table to Use
When Buying or Selling
Treasury Bills
HIS Bank has prepared a quick reference table
showing the cost of, or proceeds from, United
States Treasury Bills, at discount rates ranging
from .05% to .50%, with maturity dates from
1 to 93 days. The rates from .20% to .40% are
given with .01% intervals, including .375%.
Otherwise the rates are at .05% intervals.

T

We’ll be glad to send you copies of the table.
Also, we’re ready to make bids and offerings in
Treasury Bills and other Government securities.
G O V E R N M E N T S E C U R IT IE S
D IV IS IO N

Continental I llinois
N ational Bank
and T rust Company
OF CHICAGO

E m il Junger, son of Dr. E. C. Junger,
presid en t Soldier V alley Savings Bank,
Soldier, is now stationed in H u n te r
L iggett M ilitary Reserve, Jolon, Cali­
fornia. He has the ra n k of Sergeant.
E. D. Earw ood. a ssistan t cashier
L ohrville Savings B ank and son of E.
E arw ood, presid en t of th e bank, is
now a Cornoral w ith th e 132nd Field
A rtillery, Camp B landing, Florida.
AV. A. H eyer, cashier F irst N ational
B ank of Sum ner, has tw o sons in the
A rm ed Forces: Capt. H. B. H eyer, 3rd
In fan try , F o rt Snelling, M innesota,
and Lt. W alter L. H eyer, A rm y Air
Base, Colorado Springs. L. P. W inks,
vice presid en t of th e bank, also has a
son in service. Corp. Ben W inks, Glid­
er Squadron, P alm s Aero Academy.

T hree sons of H enry W itth oft, p res­
ident W est C hester Savings Bank, are
in the A rm ed Forces: Capt. A rthur
W itth oft, Des Moines; Ralph W itth oft,
Ireland; and W ilbur AVitthoft, F o rt
Shelby, M ississippi. F. M. Lindenm eyer, cashier of the bank, has tw o
sons w ith the Colors; Capt." John H.
L ind en m eyer, Roswell, New Mexico,
and E nsign F rederick T. L ind en m ey­
er, w ith th e U. S. Coast G uard at
W rangel, Alaska.
Olan F. T egeler, form erly teller of
the State B ank of W orthington, w as
inducted into the A rm ed Forces in
April. 1941, and is now stationed at
F o rt Dix, New Jersey, having recently
been prom oted to the ra n k of Cor­
poral.
R oss Theodore R einer, Jr., teller
N orth L inn Savings Bank, C enter
Point, and son of R. T. Reiner, p resi­
dent of th e bank, is now stationed at
F o rt B enjam in H arrison, Indiana.
H arold G. K incaid, bookkeeper Al­
b e rt City Savings Bank, is at th e U. S.
N aval T raining School in San Diego,
California.

M e m b e r Fe de ra l D e p o s it I n s u r a n c e Cor por at ion

Sgt. Leo J. Van E rdew yk, son of F.
Van E rdew yk, presid en t of the Breda
Savings Bank, is a p a rt of Com pany B,
P arach u te B attalion, and has been

N orth w estern Banker

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

July 19'i2

A.

53

-•

IOWA

NEWS

•

ducted in May, 1941, now stationed
“som ew here in Irelan d .”

New H artfo rd branch, now w ith th e
Coast G uard located in California.

F o rm er em ployes of th e Clear Lake
B ank and T ru st Company; C orporal
Jim W. W atts, In fa n try M achine G un­
ner, Camp Barkeley, Texas, and D avid
C. Barber, Coast Guard, now stationed
at Des Moines.

Lt. Chas. Cannon H elscher, son of
I). H elscher, presid en t K eokuk
County S tate Bank, Sigourney, and in
th e em ploy of th e G u aranty B ank &
T ru st Company, Cedar Rapids, is now
w ith th e Air Corps and stationed a t
Brooks Field, Texas.

T he P a rk e rsb u rg State B ank has
th ree in service: R obert B ailey, a ssist­
a n t cashier and son of O. A. B ailey,
p resid en t of th e bank, now 2nd Lt.
Medical Adm. Corps, Chicago; O rville
K asperson, bookkeeper, now P riv ate
stationed in N orth Carolina; and
Jam es E. E m ery, office m anager at

B.

D arrell A llen, bookkeeper Iow a
County Savings B ank of M arengo,
now Signalm an U. S. Navy, T reasure
Island, San Francisco.
T hom as Leo G illespie, Sgt. Field A r­
tillery, San Luis Obispo, California,

Here is the staff responsible for
the successful operation of the
Soldier Valley Savings Bank, at
Soldier, Iowa. Reading from left
to right they are: E. C. Junger,
p resid en t; Janice Jones, book­
keep er; D. H. Halverson, assist­
ant cashier; and O. S. N ordaker,
cashier.

statio n ed in th e Canal Zone for th e
p ast ten m onths.
Clifford F. M oss, a ssista n t cashier
Osage F a rm e rs N ational Bank, is now
a 1st L ie u te n a n t U. S. A rm y, statio n ed
a t F o rt Des Moines, Iowa.

Corpora] R obert E. B axter, g rad u ate
Chem ical E ngin eer, and now statio n ed
a t Edgew ood A rsenal, M aryland, is th e
son of E. W. B axter, cashier Peoples
N ational B ank, Albia.
Pvt. H arry B evin g, form erly a ssist­
a n t cashier F arm e rs Savings B ank,
F ostoria, is now w ith th e 309th Signal
Corps, A rm y A ir Base, N ew O rleans,
L ouisiana.
F o rm e r bookkeeper of Citizens F irs t
N ational B ank, Storm Lake, Carl O.
B achm an is now a P riv a te w ith th e
U. S. M arines statio n ed a t San Diego,
C alifornia.
F irs t N ational B ank of Sioux City
has th re e form er em ployes in th e serv ­
ice: L aw rence B rin ey, a ssista n t tr a n ­
sit m anager, now P riv a te Technical
School Squadron, S heppard Field,
Texas; E dw ard H offm an, teller, now
3rd Class Seam an, Chicago; an d R obert
E. G leeson, P riv a te F in an ce School,
F o rt B enjam in H arrison, Indiana. Pvt.
Gleeson w as fo rm erly in th e personal
loan d ep artm en t of the b ank and is th e
nephew of P re sid e n t A. G. Sam.
John H. Schnack, teller F arm e rs
Savings B ank, P rinceton, w en t into
th e F ield A rtillery w ith th e N ational
G uard in F eb ru ary , 1941. In M arch of
th is year, a fte r ta k in g a com petitive
test, he w as tra n sfe rre d to th e A rm y
A ir F orce and is statio n ed a t M axweil
Field, A labam a.

This Is Your Kind of a Bank !
W e con ceive good correspondent service to be the kind
w hich in creases in DEPENDABILITY through the years.
Scores oi banks in Iow a, N ebraska, South Dakota and
M innesota feel that w a y about the First N ational Bank
in Sioux City, and for com plete, experienced and DE­
PENDABLE service they h igh ly recom m end this institution.
Buy
U nited S tates
W a r Bonds
at th is Bank

A . G. Sam , P resid en t
J. P . H ain er, V ice P resid en t
J. R . G raning, A ssistan t C ashier
F ritz F ritzson , V ice P res, and C ashier E. A . J o h n so n , A ssistan t C ashier
J. T . G rant, A ssistan t C ashier
W . F. C ook, A u d ito r
M EM BER F E D E R A L D E P O S IT IN S U R A N C E C O R PO R A TIO N

I N S I O U X CITY

Thom as L. W olfe, a ssista n t cashier
S tate Savings B ank, B axter, w as in-

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Federal Reserve Bank of St. Louis

July 19J2

54

•
w as bookkeeper F a rm e rs & M erchants
State B ank, W in terset, before en terin g
th e service.
P riv a te H ow ard D. S tan ley, A rm y
F lyin g School, Lubbock, Te*as, w as
form erly cashier F irs t S tate B ank,
L ynnville.
Two sons of A. J. H eim erm an, cash­
ier Stacyville Savings B ank, are in th e
A rm ed Forces: Corp. W ilbur J. H eim ­
erm an, statio n ed a t F o rt Lewis, W ashton, and Pvt. M atthew H eim erm an,
now located at San Diego, C alifornia.
Service sta rs in th e D avenport B ank
& T ru st Com pany are for: Pvt. R obert
J. H iegel, son of A. H. H iegel, a ssista n t
vice president, now in Kodiak, A laska;
Pvt. Theodore A. H aut, U. S. A rm y
“som ew here in Irelan d ;” Sgt. Edgar
L. B eck w ith , F o rt W arren , W yom ing;
Cadet O. Jam es C hristensen, A rm y A ir
Corps, K elly Field, Texas; and Sgt.
Harold D. Lohrm ann, F o rt W arren,
W yom ing. The la tte r fo u r boys w ere
em ployed in vario u s au d itin g d e p a rt­
ments* of th e bank.

IOWA

NEWS

•

Stationed a t San Francisco w ith the
A viation Signal Corps is Pvt. W illiam
M ichael D elan ey, form er teller F o rt
M adison Savings Bank.
Em ploye in service, F irs t N ational
B ank of H am pton is D avid J. Beed,
form erly teller of th e bank, now sta ­
tioned at Camp Claiborne, Louisiana.
A viation Cadet George O. McClain,
fo rm er teller F a rm e rs Savings Bank,
G rundy Center, now located a t Rodd
Field, C orpus C hristi, Texas, “th in k s
it a g reat life.”
Glenn M yers, A viation Cadet, M ax­
w ell Field, Alabam a, form er bookkeep­
er Ames T ru st & Savings Bank.
R ichard W . Lantz, bookkeeper F irs t
N ational Bank, W oodbine, has been
inducted into th e A rm y A ir Corps and
is now aw aiting to be called.
Conrad C harles Gage, teller D unlap
Savings Bank, now P riv ate 1st Class,
Coast A rtillery, F o rt R osecrans, Cali­
fornia.

Peoples Savings Bank, Cedar R ap­
ids, has five em ployes in the A rm ed
Forces: M elvin A llen, in th e A rm y,
stationed in A ustralia; W illiam Henn in gsen , in th e Navy, a t Annapolis;
E u gen e K ehne, in th e Navy, stationed
in Cuba; T heodore J. W elch and John
O’C onnell, both in th e Navy, a t G reat
Lakes, Illinois.
Jam es G. W hiting, A viation Cadet
stationed a t F o ster Field, Texas, w ill
receive his w ings and com m ission th is
m onth. He is th e son of C. G. W hiting,
cashier of th e M apleton T ru st & Sav­
ings Bank.

The S ecurity N ational Bank, Sioux
City, has th e follow ing em ployes in
service: Lt. C om m ander Edw ard C.
P alm er, A ttache, U nited States E m ­
bassy, Rio de Janeiro; Pvt. V ernon H.
Cassem , U. S. A rm y, Camp Joseph
Robinson, A rkansas; D aniel L. Middleton, Pvt. U. S. A rm y, Camp B arkeley,
Texas; and F rank Jacobs, A viation
Cadet, S anta Ana, California. Mr. J a ­
cobs is th e son of W alter Jacobs, cash­
ier Lake City S tate Bank.

A t the 1 9 4 2 Iowa Group Meetings

*

The pictures above were ta k e n a t th e Iow a 1942 Group
M eetings. R eading from le ft to rig h t, those appearing are:
1— A. T. Donhowe, vice p resid en t C entral N a tio n a l B an k &
T ru st Company, Des M oines and p resid en t Iow a B ankers
A ssociation; Harry T. Huff, cashier S ta te B ank, P o rt Dodge,
and new ly elected chairm an of Group 2; and J. Robert Cor­
nell, vice presiden t and cashier F ir s t N atio n al B ank, S pirit
L ake, and re tirin g chairm an Group 2. 2—B. A. G-ronstal,
president Council Bluffs S avings B an k ; M. A. Arneson, p resi­
dent Clear L ake B an k & T ru st Company; and V. D. Koons,
president F irst S ta te B ank of B ritt. 3—M elvin W. Ellis,
superintendent of b an k in g in th e H aw keye S ta te ; Craig O.
Black, sta te m anager R.F.C., Chicago; and Robert L. Leach,
R.F.C. exam iner and form er su p erin ten d en t of b an k in g in

Northwestern Banker

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

July 19k2

Iow a from 1922 to 1925. 4— J u s t a couple of pipe smokers,
who are W. G. C. Bagley, sta te tre a su re r of Iow a, and J. J.
Maloney, a ssista n t cashier F irs t N atio n al B ank of M inneap­
olis. 5—J u s t a few A m erican B eauties including Anne
Thompson, a ssista n t cashier U nion B ank & T rust Company,
S traw b erry P o in t; Edna Hunsberger, teller E lgin S tate B ank;
A lice M argaret Beckner, stenographer A m erican N ational
B ank, A rlin g to n ; Opal A. Sackett, assista n t cashier Am erican
N atio n al B ank, A rlin g to n ; an d peeking around the corner
Hilda Zwanziger, a ssista n t cashier U nion B ank & T ru st Com­
pany, S traw b erry P o in t. 6—C. H. Megorden, cashier W aukon
S ta te B ank and new ly elected chairm an of Group 4; and
R. R. Blair, executive vice p resid en t D ubuque B ank & T rust
Company and new ly elected secretary of Group 4.

55

*
E. G. D oughm an, Jr., Staff Sgt. Ma­
rin e Corps, and son of E. G. Doughm an, p resid en t S tate B ank of Bussey.

W ith th e A rm ed F orces from th e
Ackley S tate Bank: Pvt. E u gen e F .
Gidel, Stockton, California, fo rm erly
assistan t cashier, and Pvt. A very E.
Johnson, A viation, Jefferson B arracks,
M issouri, fo rm er teller.
H arold J. Bean, son of Harold N.
Bean, a u d ito r C itizens N ational B ank

of Boone, has been tra n sfe rre d from
Camp Dix, N ew Jersey , and th e gov­
e rn m e n t has notified fam ily he h as a r ­
riv ed a t destination. Sgt. B ean is w ith
the 185th Field A rtillery.
Lt. D ean A. K nudson en listed J a n u ­
ary, 1941, now w ith A. E. F. in Irelan d ,
w as fo rm er bookkeeper College Sav­
ings B ank and son of C. A. K nudson,
p resid en t of th e bank.

IOW A

NEWS

•

In th e services of th e U nited States
from th e F arm ers T ru st & Savings
B ank, W illiam sburg, are the tw o sons
of O. E. Jones, cashier of the bank.
J. R u ssell Jones, form erly bookkeeper
of th e bank, is now in th e N aval Re­
serve a t Los Angeles. Harold Jon es is
w ith th e M edical D etachm ent, Indio,
California.
H erbert C., son of F. W. H in k hou se,
p resid en t F irs t S tate Bank, W est
B ranch, is in th e E n g ineers Division
stationed at Camp Claiborne, Louisi­
ana.
P rivate W in. D. Shearer, form erly
a ssistan t cashier Colum bus Ju n ction
S tate Bank, is now stationed a t F o rt

Lewis, W ashington, w ith the 40th Sig­
nal Corps.
A rthur W. B oyk en , teller T itonka
Savings B ank and son of W m . B oyken,
presid en t of th e bank, is stationed a t
F o rt B enjam in H arrison, Indiana.
G. M. B arnett, p resid en t G uthrie
County S tate B ank at G uthrie Center,
has one son, Gurden M., w ith th e U. S.
A rm y A ir Corps stationed a t Orlando,
Florida. A nother son, M ilton, w ill be
inducted into th e A rm y th is m onth.
M ilton B arnett is cashier of th e bank.
R aym ond C. Lange, form er teller, is
stationed a t th e G reat L akes T raining
S tation and has th e ra n k of P e tty Of­
ficer 3rd Class.

R oger R. M cln tire, fo rm er book­

k eep er
son of
d e n tist
Cooke,

K ent S tate Savings B ank and
C ashier E. B. M cln tire, now
assistan t, M edical Corps, Camp
California.

City N ational B ank, Shenandoah:
Lt. Max F. Schneider, In fa n try , Ire ­
land; Pvt. W illiam Schneider, A ir Ca­
det, N ew Y ork City (both sons of F. M.
Schneider, cash ier of th e b an k ); Capt.
W ayne C hristiansen, D ental Corps, Al­
b uquerque, N ew Mexico (son of J. F .
C hristiansen, vice p resid en t); and Lt.
R obert S. R ose, In fa n try , H attiesb u rg ,
M ississippi. Lt. Ross is th e son of
P re sid e n t H. E. R oss.
F ro m th e F irs t S tate B ank, Belmond: Pvt. B. K. P eterson , F ield A rtil­
lery, Camp Sutton, N o rth Carolina.
F red A. D ickm ann, Jr., fo rm er teller
Iow a S tate Bank, Algona, now P riv a te
36th P u rs u it Squadron, location u n ­
know n.
R obert T. Knapp, a ssista n t cashier
F irs t N ational B ank, Denison, is now
statio n ed a t Q uonset P oint, Rhode
Island. He is a P e tty Officer in th e U n it­
ed States Navy. Mrs. K napp has joined
him a t Q uonset P oint, w h ere she w ill
be em ployed u n d e r Civil Service.

F ive em ployes of th e W aterloo Sav­
ings B ank have joined th e service.
T hey are: Jack L eesch, teller, w ith th e
U. S. N avy in N ew Caledonia; M erle
R odgers, head bookkeeper, C orporal in
th e A rm y a t K itte ry Point, Maine;
Gordon M aring, bookkeeper, P riv a te
U. S. A rm y serv in g in E ngland; R ob­
ert A nderson, teller, 2nd Class Sea­
m an, Cape May, N ew Jersey; an d H oavard J. Garling, teller, P riv a te U. S.
A rm y, B astrop, Texas. D irector George
E. P ik e has one son, M ajor H orace
Pike, w ith th e U. S. A rm y A ir F orce
statio n ed a t M ather Field, Colifornia.
G ilbert N orthey, son of P re sid e n t H.
G. N orthey, is w ith th e F ly in g Corps
at M idland, Texas.
A rth u r C. Rye, a ssista n t cashier
M anly S tate B ank, is statio n ed at
Tam pa, F lorida, and D arrell E. GaAdn,
te lle r of th e bank, is still to be as­
signed to his station.

Rapidly changing times mean that QUICK, EFFI­
CIENT SERVICE is now more important than ever
before. This bank— with its modern facilities—
is in a position to rapidly handle your North­
eastern Iowa business,
your account is invited!

★

TX H
x xE
M
m
m
j

★

★

N A
R xAl l NX K
JCmLtTJL I■ O N
JLH A L
JLJ U

XII

OF WATERLOO
Member—Federal Deposit Insurance Corporation
Member—Federal Reserve System

Northwestern Banker

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Federal Reserve Bank of St. Louis

July 19b2

56

•

Two em ployes of th e U nion T ru st &
Savings Bank, Stanwood, w ho have
en listed th e ir services are Carl H.
H aesem eyer, cashier, now w ith the
N avy at G reat Lakes, and R. C. S w an ­
son, bookkeeper, A viation Cadet, Lake
C harles, Louisiana..

Jack H ix, assista n t cashier Citizens
N ational B ank, Belle Plaine, is now
P riv a te 1st Class, F in an ce D epartm ent,
H aw aii.

John E. Thede, cashier Dixon Sav­

ings Bank, has been g ran ted a leave
of absence for th e du ratio n and is now

E n sig n A. E lton Jensen, son of A. E.

m

W

•

in Creston, has been assigned to arm ed
g u ard d u ty in charge of the gun crew
on th e Jo h n C. Calhoun, a new L iberty
boat aw aiting sailing orders at C harles­
ton, South Carolina.

Leo W. Brow n, a ssista n t cashier
S tate Savings B ank, F ontanelle, en­
listed in th e N avy in Ja n u a ry , 1942,
and is now statio n ed a t Q uonset Point,
Rhode Island.

ff o u r

NEWS

Jen sen , presid en t F irs t N ational B ank

Lt. W alter E. B row n, Jr., is an in ­
stru c to r A rm y In fa n try School, F o rt
Benning, Georgia. Lt. B row n is th e
son of W. E. B row n, cashier F irs t N a­
tional B ank, Cedar Falls.

t t o tite

IOWA

h

.

i

is c o n s in

I

i t e m

^

DIRECT TO THl POUT
of Prompt Collection!

stationed at F o rt B enjam in H arrison,
Indiana. He is th e son of P. J. Thede,
presid en t of th e bank.
H ugo A. N orgren, assistan t cashier
R ippey Savings Bank, is now in New
York w ith th e U. S. Coast Guard.
Hr. E. E. Baden, son of J. F. Baden,
presid en t Security State Bank, Inde­
pendence, has charge of hospital su r­
gery at A ir P o rt H ospital, H arlinger,
Texas.
R obert W . Lauer, serving in Ireland
w ith th e A rm y, w as form erly em ­
ployed as bookkeeper w ith the Peoples
Savings Bank, Craw fordsville.
R. W. Mi lien, cashier Citizens Sav­
ings Bank, Gilman, has tw o sons w ith
the A rm ed Forces. Lt. R ichard F . M il­
ieu, “som ew here in A laska,” and Lt.
P hilip H. M illen, w ith th e In fa n try in
th e Panam a Canal Zone.

Capt. Leonard J. W egm an has re ­
cently com pleted A rm y F inance School
at F o rt B enjam in H arrison, Indiana.
Capt. W egm an is vice presid en t of th e
Citizens Savings Bank, A nam osa, and
son of P resid en t Leo J. W egm an. H ugo
D eininger, C orporal w ith th e In fa n try
in Ireland, p rio r to his induction w as
d raft teller in th e bank.
C orporal R obert W . B arlow , sta­
tioned at Camp Crowder, M issouri,
w as form erly bookkeeper S tate B ank
of Dum ont.
In th e N avy from th e Glenwood
S tate B ank is E. L. S chneckloth, as­
sistan t cashier. W . E. Slezak, book­
keeper in th e bank, w ill soon com plete
his officers train in g school and will
c arry th e ra n k of 2d L ieu ten an t in the
U. S. A rm y.

A First Wisconsin account is your master
key to prompt, efficient collection of
Wisconsin checks and drafts. This hank
is the largest in the Wisconsin-IowaDakota-Minnesota area. . . serving more
than 500 Wisconsin correspondents, as
well as hanks in key cities of neighbor­
ing states. Your inquiries are invited.

B A N K S and B A N K E R S D IV IS IO N

George T. Campbell.......................... V i c e
Richard J. Lawless........... A s s i s t a n t V i c e
Donald A. Harper............. A s s i s t a n t V i c e

Member of the Federal
Deposit Insurance Corporation

Northwestern Banker

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

July 19b2

P r e s id e n t
P r e s id e n t
P r e s id e n t

^Direct to the /Joint” become
— the First Wisconsin »erre*
m Milwaukee correspondent
fo r over SS per cent o f alt
Wisconsin bonks! I NIQUE
state icicle "coverage"!

FIRST

:
III™

U T ( } AL
unk
o f
:

m i i

1

.w a i

k k i

R ichard J. H am m on, form erly as­
sistan t cashier Iow a S tate B ank &
T ru st Com pany of Fairfield, has re ­
cently been tra n sfe rre d from G reat
Lakes to th e N aval T rain in g Station
w ith th e U niversity of M innesota. Mr.
H am m on is P e tty Officer 3rd Class.

Lt. Thom as A. R ichardson, In fa n try
T rain in g School, Camp W olters, Texas,
is th e son of T. R. R ichardson, assist­
a n t cashier M ediapolis Savings Bank.

wise jusi
1

G. W. H unt, vice presid en t Clayton
County State Bank, G uttenberg, lias a
son, Robert, w ith th e U. S. N aval Re­
serves.

■

:

Those in service from th e F irst Cap­
ital N ational B ank of Iow a City are:
Lt. R obert E. F arrell, son of Thos.
F arrell, cashier of th e bank, stationed
Camp W heeler, Georgia; Capt. R obert
E. Griffin, A rm y A ir Force, M orrison
Field, Florida, son of E. B. R aym ond,
teller; Chief P e tty Officer John W.
Grim, Pensacola, Florida, son of Joe
W. Grim, teller; Joe K noedel, U. S.
A rm y, Ireland, son of Joe E. K noedel,
custodian; V ernon P arizek, Medical
T rain in g B attalion, Camp Robinson,
A rkansas, son of W. J. Parizek, teller;
Eldon Parazek, Band, G reat Lakes,
son of W . J. Parizek, teller; E nsign W .
Cambridge, U. S. N avy, San Francisco,

57

•

IOWA

NEWS

*

G uttenberg S tate Bank, left Jan u ary ,
1942, to become a Corporal w ith th e
904th Q. M. Co., M arch Field, Cali­
fornia.
H arold R. Bonander, a ssistan t cash­
ier Security Savings Bank, Larchw ood,
w as inducted into th e A rm ed Forces
Ju n e 15, 1942.
Jam es O. W healon, now P riv ate
F ield A rtillery, Camp R oberts, w as
form erly teller of th e F a rm e rs State
B ank of M arcus.

D irector of th e Toy N ational Bank,
Sioux City, George R. Call, is now serv ­
ing his co u n try as Major, Signal Corps,
W ashington, D. C. J. W. V an D yke,

a ssistan t cashier and also a director of
th e bank, is serving as L ieu ten an t in
th e Finance D ivision stationed a t F o rt
B enjam in H arrison, Indiana. F o rm er
em ployes of th e bajik, L aw ren ce Binn eb oese and B. J. K irkpatrick, are also
in th e A rm ed Forces. Mr. B inneboese
is stationed a t th e A rm y A ir Base,
Colorado Springs, and Mr. K irk p atrick
w ith th e In fan try , New Y ork City.
I). R. L yn ch , cashier F irs t N ational
Bank, W est Union, is now Captain in
th e P ersonnel D ep artm ent of th e Air
Cadet Board a t Camp Chaffee, A rk an ­
sas.
John W. Benz, a ssistan t cashier and
son of Thos. E. B enz, cashier M elvin

Last m onth the Bankers Trust
C om pany of Des M oines celebrated
the tw enty-fifth anniversary of the
founding of the bank. Here, from
left to right is Paul Blakem ore,
advertising counsel for the bank;
R. R. Rollins, vice president; and
R. N evin Lee, assistant vice presi­
dent, looking over some of the
favorable pu b licity w hich the
Bankers Trust C om pany received.

an d bookkeeper of th e F irs t C apital
N ational p rio r to his induction.
Lt. P au l K. K ovar, now statio n ed a t
F o rt R ichardson, A nchorage, A laska,
is th e son of John A. Kovar, cashier
Peoples S tate B ank, M issouri Valley.
T he Iow a S tate B ank & T ru s t Com­
pany, Iow a City, has four service
stars: Lt. Ben S um m erw ill, Camp
W heeler, Georgia, son of P resid en t
Ben S. Sum m erw ill; Jam es S. Guthrie,

2nd Lt. Chemical W arfare, Edgew ood
A rsenal, M aryland, son of M. B. Guth­
rie, cashier; D avid R. L ew is, fo rm er
bookkeeper, now in F in an ce D ep art­
m en t A ir Service, F o rt Logan, Colo­
rado; and Pvt. Oral D. B artholow , fo r­
m er teller, now in O rdnance D ep art­
m en t T rain in g School, Savannah, Illi­
nois.
A lfred M. Sieh, cashier and vice
p resid en t F irs t State B ank, State Cen­
ter, left in May, 1942, to a tte n d A rm y
F in an ce School. F o rt B enjam in H a rri­
son, Indiana. He w ill re ta in his title
of vice n resid en t for th e d uration. R ob­
ert E. Sieh, bookkeeper and b ro th e r to
A lfred, is now a S ergeant O rdnance
Division, Camp Swift, Texas.

A Bank for
Middle West Bankers
For n early three-quarters of a
century this bank has handled
the accounts of bankers through­
out the m iddle w est. M ay we
explain how this long experience
can be made of value to you?
•

LIVE STOCK
N A T , O N A L BANK OF CHICAGO
E s t a b l i s h e d 1868

U N I O N S T O C K YARDS

H arlan F. F u k ey , a ssista n t cashier
Member F e d e r a l D e p o s it In su ra n ce C o rp o ra tio n

Man, 45, desires immediate bank posi­
tion; 15 years experience. Finest refer­
ences. Write M. H., care Northwestern
Banker.

Northwestern Banker

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

Julij 19't2

58

•
Savings Bank, is statio n ed a t F o rt
Lewis, W ashington, w h ere he is a Cor­
poral in th e F ield A rtillery.
P eter Garatoni, m an ag er B urnside

Savings B ank office a t Lehigh, re ­
signed his position recently, an d is
now in th e A ir Corps statio n ed a t
F o rt Logan, Colorado.
F. W. A llen, assista n t cashier M us­

catine B ank & T ru st Com pany, w as
inducted in th e arm ed services in J a n ­
uary, 1942, as C aptain in th e F ield A r­
tillery, statio n ed a t F o rt Snelling, M in­
nesota.
T he N ational B ank of B urlin g to n
has lost tw o em ployes to th e A rm ed

IOWA

NEWS

•

Services: R aym ond K. Pearson, now
1st Lt. E ngineers, F o rt L eonard Wood,
M issouri, and Jam es R. C um m ings,
Yeom an 3rd Class, U. S. N aval Re­
serves, W ashington, D. C. Both m en
w ere tellers in th e bank.
B u rlington Savings Bank:

P riv ate

Robert J. Granam an, O rdnance T ra in ­

ing B attalion, A berdeen P roving
G rounds, M aryland (son of M. T.
Granam an, a ssista n t cash ier), and P ri­
vate R alph C. B ailey, Medical T rain ­
ing B attalion, Camp G rant, Illinois
(bookkepeer).
T ruitt U n s a y V inyard, P riv ate A rm y
F ly in g School, V ictorville, California,
form erly m anager Small Loan D epart­

m ent, F irs t T ru st & Savings Bank,
D avenport.
F. T. L ew is, a ssistan t cashier State
B ank of T erril, now P riv ate Coastal
A rtillery, Seattle, W ashington.

W ith th e exception of F. C. A ue,
cashier F irs t N ational B ank of Sioux
Center, all officers of the ban k have a
son in th e A rm ed Services.
In th e A rm ed Services from th e
F irs t N ational Bank, Council Bluffs,
are: C aptain R ichard K. Stoufer, son of
D. B. Stoufer, vice p resid en t of th e
bank, now stationed a t F o rt Sill, Okla­
homa; P riv ate E dw ard J. H eck, form er
bookkeeper, now A ir G round School,
Jefferson B arracks, M issouri; and Col.
F olsom E v erest, now in com m and of a
u n it of A m erican E xp ed itio n ary Force
in Ireland. The Colonel w as a director
of th e b an k u n til he resigned to tak e
his place in th e A rm y.
John Scott, Jr., presid en t Morningside S tate Bank, Sioux City, has a son,
George W arren Scott, serving overseas
as C aptain in th e Medical Corps, Field
A rtillery. Capt. Scott w as a clerk in
the bank.

C hester F. Ogren, teller, K iron S tate
Bank, now w ith A rm y A ir Corps, Je f­
ferson B arracks, M issouri.

BANKERS DO NOT WEAR UNIFORMS]—

B ut the p a rt every banker is playing in the
production of m aterials fo r our all-out w ar
effort is vitally im portant.

If we can assist you in any way our services
are at your disposal.

M alcolm H. E rickson , teller, Live
Stock N ational Bank, Sioux City, is
now a S ergeant in th e M edical De­
tachm ent, Stockton Field, California.
V eto A lbert V ets, teller, left recen tly
to enlist in th e In fan try .
F ran cis J. W eis, bookkeeper C entral
State Bank, M uscatine, w as inducted
last m o n th an d has not as y et been
assigned to a station.

Corp. L eroy E. H orton, Geiger Field,
W ashington, w as bookkeeper of th e
Pocahontas S tate B ank p rio r to his
enlistm ent.
Sgt. Jerom e J. U ngs, H ead q u arters
D etachm ent, Camp Lee, V irginia, is
th e son of C. .1. U ngs, presid en t Luxem berg Savings Bank, and w as form erly
a ssistan t cashier of th e bank.
T he follow ing list are th e people con­
nected w ith th e S tate B ank of F o rt
Dodge w ho are now in th e A rm ed
Forces: Lt. S teven J. M anchester,
N o rth ern Ireland: Lt. Jack J. Jen sen,
F o rt Sill, Oklahoma; Seam an 1st Class
La V erne F. M ozena, G reat Lakes
T rain in g Station; Edw ard E. W eiss,
F lying Cadet, A ir Corps R eserves (all
form er em ployes of th e in stitu tio n );
Richard V. Gadd, Cadet, M axwell
Field, A labam a (son of C. W . Gadd,
executive vice presid en t); M idship­
m an G. F letch er Moore, Chicago (son
of E. H. Moore, a ssista n t cashier &
tru s t officer); Pvt. R ichard V. Mulroney, A ir Corps T echnical School (husYOUR STATE BANKERS ASSO CIATIO N
O FFIC IA L SAFE, V A U L T AN D
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA

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Federal Reserve Bank of St. Louis

July 1942

59

• IOWA
band of M ildred J. M ulroney, stenog­
ra p h e r).
Claude E. D rake, 2nd L ieu ten an t
a ttach ed to M. P., is th e son of H. A.
D rake, p resid en t S ecurity S tate B ank,
Radcliffe. Lt. D rake w as a t one tim e
w ith th e S tate B anking D epartm ent,
and has also held positions w ith th e
S ecurity State Bank, Radcliffe; Secu­
rity State B ank, H ubbard, an d th e City
B ank at W ashington, D. C.
R. A. H ess, cash ier F irs t T ru st &
Savings B ank, Moville, is now a n Offi­
cer C andidate, A rm y A ir Corps, M iam i
Beach, Florida.
J. A. IVelson, cash ier F a rm e rs State
B ank, L uverne, has tw o sons in th e
service: Clair O. N elson, G reat L akes
N aval T rain in g Station, an d .Ion A.
N elson, Lockheed O verseas C orpora­
tion in Ireland.

NEWS*

Camp W heeler, Georgia. Lt. M iehe is
th e son of Dr. <>. C. M iehe, d irector of
the bank.
M yron C. M ohns, teller Cresco State
Bank, now S torekeeper in the Service,
stationed at D utch H arbor, Alaska.
P aul H. Sam ek, form erly bookkeeper

and teller in th e F irs t T ru st & Savings
Bank, Cedar Rapids, is now stationed
at F o rt W arren, W yom ing. Leo A.
D vorak, w ith th e Coast G uard and sta ­
tioned at San Diego, C alifornia, is the
son of F ran k J. D vorak, cashier of the
F irs t T rust.
Lt. R. D. R isser, son of Fred S. Ris-

ser, presid en t F irs t S tate b an k of
C hariton, is w ith the U. S. N avy a t th e
U niversity of M ichigan. Carl W . Rob­
erts, clerk in th e bank, is also in th e
N avy at th e G reat L akes T rain in g Sta­
tion.
Two form er em ployes of the Jeffer­
son State Bank, D onald N eil Berry and
Jam es H enry A ndrew , are now in
service. Pvt. B erry is stationed a t Jef­
ferson B arracks, M issouri, and Pvt.
A ndrew at F o rt F ran cis W arren, W yo­
ming.
W yatt C. W ood, bookkeeper and son
of C ashier F ran k N. W ood, is P riv ate
in th e Medical Corps in H aw aii.

Sgt. M. Z. B ailey, M edical B attalion,
F o rt L eonard W ood, M issouri, is th e
son of R ollw y R. Bailey, m an ag er
Clearfield b ran ch of th e S tate Savings
B ank of S harpsburg.
Jam es E. R aster, teller Security
T ru s t & Savings B ank an d nephew of
R. W. R aster, vice p resid en t an d cash­
ier of th e bank, is statio n ed a t F o rt
F ra n c is E. W arren , W yom ing.

F o u r sta rs for th e F irs t N ational
B ank in S p irit Lake; D avid W ier Cuttell, a ssista n t cashier, now F ly in g Ca­
det, U. S. A ir Corps, aw aitin g call;
R obert F . L aF on taine, son of E. P. I>aF on tain e, chairm an of th e board,
USNR, aw aitin g call; Robert R. Cor­
nell, son of J. R obert Cornell, vice
p resid en t, USNR, aw aitin g call; John
R. F urm an, bookkeeper, U. S. M arine
R eserves, aw aitin g call; W ilbur Yeutter, son of D irector C. E. Y eutter, Cor­
poral, U. S. A rm y, Camp R oberts, Cali­
fornia.

SPEEDING THE DAY OF VICTORY

L ester J. H ein en , Cadet N avy A ir
Corps, Pensacola, F lorida, is th e son of
R, J. H ein en , cashier F a rm e rs Savings
Bank, H albur.

ELEMENT in the war production program is transA-VITAL
portation. Raw materials must be moved in an endless stream
—processed parts speeded from sub-contractors to assembly lines
and finished materials placed in the hands of our fighting forces
—if costly delays are to be avoided and victory achieved.
The American National Bank and Trust Company is cooperat­
ing closely with the transportation industry, as with other busy
factors in the war production program. It cooperates just as
closely with correspondent banks, serving them with speed and
efficiency, and helping when requested to meet the expanded
credit needs arising out of local war production activities.

M oritz R erndt, vice p re sid e n t K ern d t

B ro th ers Savings B ank, L ansing, has
tw o sons serv in g th e ir country: E n ­
sign Jam es M. R erndt, USNR, “som e­
w h ere in th e Pacific;” E n sig n G ustave
F . R erndt, USNR, “m issing in action
since Ju n e, 1942.” A th ird son, Thom as
M. K erndt, a t o re se n t a ssista n t cashier
of th e bank, w ill soon be in th e service.
The A m erican N ational B ank of A r­
lin g to n have tw o form er em ployes in
th e 'A rm e d Forces: M alcolm C. Jen sen,
P riv a te 1st Class, F in an ce Office,
Brow nw ood, Texas, and R obert E.
M iehe, 2nd L ie u te n a n t of In fa n try ,

A M E R IC A N N A T IO N A L B A N K
AN D TRUST CO M P A N Y

Banks Sold or Bought!
quietly, quickly and in

a personal

OF CHICAGO

manner

JAY A. WELCH

..... ..

LA S A L L E S T R E E T j l
M e m b e r F e d e r a l D e p o s it

BAN K BROKER
H ad d am , K ansas

“35

Y e a rs P ra c tic a l B a n k in g E x p e rie n c e ”

AT W A S H I N G T O N

" S lIHS k

'

'W ?
O U R

B U S I N E S S

I S

T O

H E L P

B U S I N E S S

Northwestern Banker

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

---------

I n s u r a n c e C o r p o r a tio n

July 19b2

60

í

• IOWA
K eith M arvin Overbeck left his po­
sition as a ssista n t cashier L u an a Sav­
ings B ank Ja n u a ry , 1942,. He is sta ­
tioned a t P endleton Field, Oregon.
J. C, B rekken, bookkeeper and teller
R andall S tate B ank, w as inducted into
Service at F o rt Des M oines in J a n u ­
ary, 1942. H e is th e son of J. H. B rek­
ken, cashier of th e bank.

NEWS

*

statio n ed at Camp Ord, California. He
has been in the A rm y one year.
Ivo H. Schroeder, teller, A lton Sav­
ings Bank, Alton, has been serving
w ith th e U. S. A rm y since May 11th,
and is located a t Jefferson B arracks,
M issouri. T aking his place in th e b ank
is A rm ella P ottebaum .

F ro m th e N ational B ank of W a te r­
loo: Gerald H. Cook, teller, now Sea­
m an. 1st Class, U. S. N avy, N orfolk,
V irginia.

H. R. M otter, cashier, E a rly Savings
B ank, E arly, announces th a t his son,
H om er, is serving w ith th e A rm y A ir
Corps and at p resen t is stationed som e­
w h ere in India. He has been in service
since 1939.

Ralph I j. M cD ow ell, fo rm erly assist­
a n t cashier S ecurity S tate Bank, Lake
P ark , h as been in service since F eb ­
ru ary , 1942, a t an Officers T rain in g
School, H a rv a rd U niversity, Boston.

D avid W. C uttell, a ssistan t cashier,
F irs t N ational Bank, S pirit Lake, for
several years, recently joined th e A rm y
A ir Corps. He is succeeded by W ayne

Lt. E lm er G. G eronsin, now in serv ­
ice in Ireland, w as fo rm erly te lle r of
th e Sibley State B ank.
Sgt. John R. B utler, a ssista n t cash­
ier L y tto n Savings B ank, is now Com­
p any Clerk w ith th e 30th In fa n try

O. H opkins.
John W . Benz, son of T hom as E.
Benz, cashier, M elvin Savings Bank,
is a C orporal in th e F ield A rtillery de­
p a rtm e n t as a battalio n clerk an d is
statio n ed a t W ashington, D. C. H e has
been in service since last October.

IO W A

N EW S

FRO M HERE A N D THERE
By J . A . Sarazen, Associate Editor
J . A. S A R A Z E N

HAD th e p leasure of atten d in g th e
16th q u a rte rly m eeting of th e Iowa
A ssociation of B ank A uditors and
C om ptrollers session a t Storm Lake
th e o th er n ig h t and I m u st say th a t I
have been laboring u n d e r a m u ltitu d e
of m isconcepted ideas about th e func­
tions of th is b ran ch of th e Iow a B ank­
ers A ssociation. I had h eard about
these m eetings and n ev er atten d ed any
of them , as I w as of th e opinion th a t
these m eetings w ere for fellow s of a
v ery select group, w ho talk ed in high
m ath em atical figures an d I ju st
w ou ld n ’t be able to u n d e rsta n d th e ir
language.
To m y su rprise, I learn ed th a t these
m eetings are now atten d ed by th e o r­
d in a ry ru n of b ankers, as w ell as th e
fellow w ho is responsible for th e
sm ooth fu nctioning of th e bookkeep­
ing d ep artm en t, w ho is k now n as th e
auditor.
At th e Storm L ake m eeting, w hich
w as held a t th e B radford H otel in th e
evening of Ju n e 17th, th e re w ere by
far m ore b an k p residents, cashiers and
a ssista n t cashiers, in atten d an ce th a n
th ere w ere auditors. T hese fellows
w ere all th e re to find out w h a t could
be done to m ake th e b an k ru n ju s t a

I

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Federal Reserve Bank of St. Louis

July 1942

little m ore sm oothly. T here w ere 90
reg istrations, w ith practically all banks
in th e im m ediate te rrito ry being re p ­
resented, as w ell as b an k ers from m ore
d ista n t points, such as M ason City,
F o rt Dodge, O ttum w a and Sioux City.
D iscussions w ere of an open n atu re,
and w hile th ey dealt m ostly w ith sh o rt
cuts incident to b e tte r bookkeeping
m ethods, b anking problem s generally
cam e up for discussion. F o r instance,
R egulation W also came up for a round
of discussion. I g ath ered th a t it w as
as confusing to m ost b an k ers p resen t
as to m yself, and to m ost all b an k ers
to w hom I have talked. No doubt
Frank W arner w ould have been able
to en lighten us on th is subject, b u t it
w as n ecessary for him to leave th e
m eeting before it cam e up for discus­
sion. E. H. K etelsen , presid en t of the
association and au d ito r of th e D aven­
p o rt B ank & T ru st Company, told me
th a t for th e last tw o y ears an effort
has been m ade to b rin g th e average
b an k er to these m eetings w ith a w ell
rounded out program .
A fter d in n er w as served and cigars
passed, th e m eeting w as called to order
by Mr. K etelsen. A w ord of welcome
to Storm Lake w as extended by Fred

p resid en t of the local
C ham ber of Commerce. A. T. Donhow e, Iowa B ankers A ssociation p resi­
dent, told th e b an k ers he believed th a t
in th e n ear fu tu re banks w ould oper­
ate on a strict budget w hich th e au d it­
ing d ep artm en t w ould have a m ajor
p a rt in settin g up.
In th e absence of George J. Schaller,
w ho could not be present, A\r. C. E dson,
local attorney, very capably addressed
th e m eeting. H is topics w ere of a
general n a tu re and dealt p articu larly
w ith problem s th a t w ill confront b an k ­
ers afte r th e w ar.
W arren Garst, Jefferson banker, did
a splendid job of leading th e round
table discussion. He has a w ay of
keeping a m eeting pepped up and a t
th e sam e tim e his m irth keeps you
w ondering w h at is com ing next. New
w ays of doing th in g s w ere discussed
and m any suggestions w ere m ade in
elim inating u n necessary w ork and
speeding up of detail w ork in general.
On th e conservation side suggestions
included: Use Scotch tape instead of
ru b b er bands. A ltern ate ty p ew riter
ribbons every tw o w eeks w hen receiv­
ing abnorm al use. T his re st w ill give
th e ink a chance to w ork back into
th e ribbon. P ap er clips, ru b b er bands
and pins should be rem oved from dis­
carded m aterial, as these supplies are
no longer available on th e m arket. A
savings in pap er tow els can be m ade
by placing th e tow el holder sufficient­
ly high on th e w all so th e u se r w ill
shake his hands before reaching for
th e towel. T he n ex t m eeting w ill fol­
low the I. B. A. convention in D es
B.

F arm er,

4

>

\

M oines.

A successful m eeting of th e Sac
County B ankers A ssociation w as held
a t Lake View on th e evening of Ju n e
18th, w hich I also h ad th e pleasure of
attending, w ith every b ank in the
county being represented. A fine din­
n e r w as served a t 6:30 o’clock, w hich
w as followed by a business session and
th e an n u al election of county associa­
tion officers. Incom ing officers are all
from th e Odeboldt S tate B ank and are
as follows: R. H . Griffin, president; Tra
M artin, vice president; C. M. Stenberg,
treasurer. T hey succeed J. P. Jones,
cashier, C itizens Savings Bank, Sac
City, as president; C. W . Shaw , cashier,
W all Lake Savings Bank, as vice p res­
ident, and F. B. H an sen , a ssistan t cash­
ier, Citizens Savings Bank, Sac City,
as secretary and treasu rer. A fter the
business session we w ere tak en on an
in terestin g to u r of th e local govern­
m en t vocational tra in in g school.
W hy w o rry about com plying w ith

V

61

•
R egulation W, says O. W. M adson,
cashier, S ecurity S tate B ank, F arnham ville. H e sim plifies th e m a tte r
m erely by u sing a ru b b e r stam p on th e
back of each sm all note w hich reads as
follows:
T his loan is m ade to a person e n ­
gaged in ag ricu ltu re, and it is for a g ri­
c u ltu ra l p u rposes and not for th e p u r­
pose of p u rch asin g an y listed article
designated in th e C onsum er C redit
R egulations of th e B oard of G overnors
of th e F e d e r a l R e s e r v e System .
(Signed) The w ording of th e stam p
used w hen m aking loans to business
m en is w orded slightly different: T his
loans is m ade to a business en terp rise
an d it is for business purposes, etc.,
etc. T h ere is ju s t one bad featu re to
u sin g a stam p on th e note as I see it.
A fter th e note is paid y o u r record
leaves th e bank, u nless in som e w ay
th e note be m ade in duplicate so a
reco rd could rem ain in th e bank. V ern
T. B on nett, a ssista n t vice president,
Iowa-Des M oines N ational B ank, w ho
is in charge of th e sm all loan d e p a rt­
m ent, tells m e th a t his b an k h as th e
custo m er sign a form sta tin g w h a t th e
proceeds of th e loan are u sed for cov­
e rin g all loans of $1,500 and less. T hus,
a p e rm a n e n t record is k e p t in th e
bank.
V. 1). K oons, p resid en t of th e F irs t
S tate B ank, B ritt, rep o rts th a t his b an k
recen tly opened an office a t C rystal
Lake. I t is u n d e r th e m an agem ent of
R ush G abrielson, w ho w as form erly
cashier of th e old F a rm e rs N ational
B ank at C rystal Lake.

The C itizens S avin gs Bank, Sac City,
reduced in te re st rates Ju n e 1st, from
2 V2 p er cent on 12 m o n th CD’s to 2
p e r cent. On six m o n th CD’s and sav­
ings accounts from 2 to IV2 p er cent.
T he E arly Savings B ank reduced in ­
te re st ra te s effective Ju ly 1st, from 2%
ot 2 p er cent. T his w ill effect all in ­
te re s t b earin g accounts alike.
The Secu rity State Bank, Sheldon,
had deposits of $1,027,000 a t th e tim e
of th e A pril 4th call, w hich is th e first
tim e deposits have been th is high a t
th e tim e of a call. R. A. Schneider,
cashier, rep o rts loan volum e as hold­
ing up v ery well.
S o ld

my

b a n k few

connected w ith la rg e
b u t w ould co n sid er
connection. Could fill
ta lk it over. W rite R.
w e ste rn B an k e r.

y e a rs ago. N ow
c re d it in s titu tio n
co m m ercial b an k
a n y p o sitio n . L e t’s
W. M., c a re N o rth ­

IOWA

NEWS

•

E. E. M anual, president, George State
B ank, also told us his deposits reached
th e m illion m ark a t th e tim e of th e
A pril 4th call, w hich w as v ery pleas­
ing. L oan volum e has held up v ery
well, as he has been successful in m ak ­
ing some first choice farm real estate
loans to m ake up for th e liquidation of
several sm all loans. Tim e m oney here
am ounts to $258,000.
R oy B ass, executive vice president,
City S tate Bank, Ogden, re tu rn e d from

a trip to California, accom panied by
Mrs. Bass, to find th a t u ltra m odern
low type cages had been installed d u r­
ing his absence. Roy, of course, had
ordered the job done before he left.
The first y ear of operation finds the
R u th ven State Bank, R uthven, w ith

deposits of $315,000. Loans and dis­
counts are $90,000. The bank opened
for business Ju ly 5, 1941.
G. H. A yers, president, Sibley State

When a Parachute Trooper
Steps Off a Plane in Mid Air—
— He c a rrie s th re e s q u a re m e a ls w eig h in g
less th a n tw o p o u n d s. (U. S. R ation K)
W h en sh ip s c a rry food to Britain, to d a y ,
m uch of it is in d ried form — w a te rle s s e g g s,
m ilk, fruit a n d v e g e ta b le s .
A h u g e in d u stry h a s d e v e lo p e d in the
U nited S tates, alm o st o v ern ig h t— just to
ta k e th e w a te r out of food— a n d still r e ­
ta in th e p recio u s v itam in s, p ro tein s a n d
m in erals p lu s the flavor a n d color. T ake
e g g d ry in g for e x am p le.
Thirty dozen
e g g s w e ig h 60 p o u n d s. T hese sa m e e g g s
w h e n d rie d w e ig h o n ly 11 p o u n d s.

In 1941. th ere w e re only 16 e g g d ry in g
p la n ts in the en tire co u n try .
d u c e d ab o u t

T h ey p ro ­

10 m illion p o u n d s of d ried

e g g s a y e a r. T oday th e se sa m e p la n ts
p ro d u ce 45 to 50 m illion p o u n d s, a n d o p ­
e ra te the y e a r rou n d .
In ad d itio n , 70
n e w p la n ts h a v e b e e n p la c e d in o p eratio n .
D rying food is not n ew , b u t d ry in g a n d
re ta in in g the food v a lu e s of the food p lu s
flavor is. A n d a n im p o rtan t in d u stry h a s
e s ta b lis h e d itself to m ak e g re a te r u se of
m id w este rn a g ric u ltu ra l p ro d u cts a n d th e
se rv ic e s of m id w e ste rn B anks.

DROVERS NATIONAL BANK
DROVERS TRUST & SAYINGS BANK
U N I O N

i

S T O C K

Y A R D S ,

C H I C A G O

'w - •»CA;

;
M e m b e r s , 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 io n

N orthw estern Banker

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

July 1942

62

•

IOWA

NEWS

*

Bank, w as a t O rlando, Florida, w hen
w e visited th e b an k a fo rtn ig h t ago.
H is wife and young son w ere v isitin g
th e re w hen it w as n ecessary for th e
son to undergo an appendectom y.

C ounty State Bank, E stherville, tells
us th a t his R ingsted office has been
new ly renovated. New floors w ere in ­
stalled, w alls and ceilings redecorated
and new lighting fixtures installed.

Fred de .long, a ssista n t cashier,
F a rm e rs Savings Bank, Boyden, has
been confined to his hom e w ith a h e a rt
ailm en t for th e last tw o m onths. In
his absence John Sm id is helping out.

The S tate B ank of L edyard cele­
b rated its 50th an n iv ersary in June.
T his b an k w as released w ith th e n a­
tio n al banks after th e n ational ban k
holiday and earnings have alw ays been
good, according to C ashier W. E.
W iem er. D eposits are $600,000.

New em ployes at th e F irs t N ational
Bank, S p irit Lake, are G eneve G ravitt
of S p irit Lake and M argaret Sunde of
E stherv ille.
W. C. C urrell, presid en t, E m m et

JlataeAJt Qadt
Our policy provides a maximum
assessment of 2 */2% in Zones
One and Two—and 3'/2% in
Zone Three (Western Iowa).

Hawkeye Mutual Hail
Insurance Association
Carver B ld g.

F ort D o d g e, Iow a

M ERCHANTS
MUTUAL

B O N D IN G
CO M PANY
In co rp o rated 1933

Home Office
V ALLEY B A NK BU ILDING

D es M o in es, Iow a

•

•

T h is is Io w a ’s o ld est su rety com p any.
A p ro g ressiv e com p any w ith ex p eri­
en ced , co n serv a tiv e m an agem en t. W e
are p rou d o f our h u n d red and fifty
b ank agents in Iow a.
T o b e th e ex c lu siv e rep resen tative of
th is com p any is an asset to you r bank.

•

«

W rite to

E. H . W A R N E R
Secretary and Manager

N orthw estern B anker

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

July 19ri2

A ccording to B. H. B u nge, cashier,
F irs t T ru st & Savings Bank, A lta, his
b an k has sold over $100,000 w o rth of
g o v ern m ent bonds and a recen t check
show s th a t deposits have gained m ore
th a n $75,000 in th a t tim e.
A t Storm Lake, 2 p er cent in te re st is
paid on savings accounts, up to $1,000,
and 1 p er cent on th e n e x t $1,500 and
no th in g over $2,500. Cash deposits
bear 1 per cent in te re st and no lim it
is set on th e am o u n t accepted on an
in te re st bearing basis.
B anks in P lym ou th County apply a
service charge on checking accounts
w hich is equitable to all and an y b a n k ­
e r in th is te rrito ry w ill tell you th a t in
th e seven years it has been in opera­
tion th ere seldom, if ever, has been
an y com plaint from custom ers about
it. It is v ery sim ple and is as follows:
One free debit (checks w ritte n or outof-town checks deposited) is allow ed
for each $20 average daily balance.
Checks in excess are charged a t th e
ra te of 3c each, plus a 25c bookkeeping
charge. It is readily seen th a t any
custom er w ith a com pensating balance
avoids any charge. Com m ercial ac­
counts are analyzed.
It is said a successful b an k er is com­
posed of one-fifth accountant, twofifths law yer, three-fifths econom ist
and four-fifths gentlem an and scholar—
double size. T his goes p artic u la rly for
H. A. O’Farrell, cashier, F arm ers Sav­
ings B ank, Fostoria. H e says his first
job is banking, his hobbies golfing and
fishing, and so far as th e w ar effort is
concerned he is on th e W ar A ctivities
Board, u n d er w hich he serves on v a ri­
ous com m ittees such as th e USO, China
Relief, Soldiers and Sailors Relief. He
is on th e board of th e Red Cross, sells
W ar Bonds, is deputy a d m in istrato r of
th e Clay C ounty R ationing Board, and
oh, yes, he is also tow n clerk.
C.
L. E astm an w as recen tly added to
th e board of directors of th e F irs t N a­
tional Bank, Le M ars, and succeeds G.
L. W ernli w ho passed aw ay. In te re st

rates here w ere recently reduced from
2 to 1 p er cent.
N. A. W elle, cashier, A rlington State
Bank, and ch airm an of Sibley county
in th e sale of W ar Savings Bonds, re ­
ports th a t Sibley county w as one of
th e first counties in th e state to go
over th e top in its quota, h aving
reached its goal in 15 days.

N EW S A N D VIEW S
(C ontinued from page 12)
am using definitions, 85 illu stratio n s
from fam ous lives, 173 colorful phrases,
100 sim iles, 300 Biblical quotations, and
1,200 quotations from literatu re. A ll
4,000 item s are indexed.

“T he last eig h t chapters, w hich I
have roughly grouped into th e fo u rth
point above, include m aterial for w hich
a sp eaker m ight otherw ise req u ire th e
use of a nu m b er of anthologies or
o th er books. I t w as m y th o u g h t th a t
m ost m en w ould like one book w hich
provides all of th is m aterial.
“I used several item s from the
‘N orth w estern B anker,’ for w hich
pro p er credit w as given.”
D uring th e 25th a n n iv ersary of th e
B ankers T ru st Com pany of Des Moines,
m any officers and em ployes of th e
b an k w ere in terview ed over th e radio,
and F ran ces F o ster of the credit de­
p artm en t, w as asked by th e radio in ­
terv iew er w h a t h e r circle of friends
w ere doing to help th e soldiers, and

Des Moines, Iowa

BANK ER
AGENTS
WANTED
T he oldest mutual company of its
kind in America offers liberal
agency contracts covering—

•
•
•
•

AUTO I N S U R A N C E
TOR N AD O I N S U R A N C E
TOWN DW E L L I N G I N S U R A N C E
HAI L I N S U R A N C E
on Gr owi ng C r o p s

Over $1,250,000 cash surplus—
49 years of proven protection.
W r ite

fo r ou r lib e r a l p r o p o s itio n
b a n k r e p r e s e n ta tiv e s .

to

63

• IOWA
she said th a t th e y w ere buying W ar
Savings Stam ps and Bonds, and “E n ­
tertain in g th e sold iers in m any differ­
en t w a y s.”

I t is u n d ersto o d th a t th is re m a rk has
b ro u g h t h u n d red s of le tte rs to Miss
F o ste r from soldier boys th ro u g h o u t
th e nation, w ho are looking for “e n te r­
ta in m e n t.”
E arl C. A dam s, re tirin g p resid en t of
th e Illinois B ankers A ssociation, and
p resid en t of th e Je rse y State B ank of
Jerseyville, Illinois, believes th a t all of
th e abuses of in d u stry and labor and
a g ric u ltu re should be done aw ay w ith
if we are to have a u n ited effort to w in
th e w ar.
Mr. A dam s p u ts it th is way:
“T his is a n atio n of 130,000,000 peo­
ple. It is n o t a g o v ern m en t of, by and
for th e labor leader an y m ore th a n it
is a g o v ern m en t of, by an d for th e
m an u factu rer, or the m e rc h a n t or th e
b anker. W e all have a stake in all this.
“L et us in sist th a t abuses in in d u s­
try , in trade, in banking, in ag ricu ltu re
or in labor m u st be curbed. Only by
doing th a t can w e m ake th e tru ly
u n ited effort we have to m ake.”
W. L. H em in gw ay, p resid en t of th e
M ercantile-C om m erce B ank & T ru st
C om pany of St. Louis, an d first vice
p resid en t of th e A m erican B ankers
A ssociation, believes th a t th e g overn­
m e n t also m u st p ractice econom y and
th r if t if it expects th e people of th e
co u n try to do likew ise.
Mr. H em ingw ay says:
“W e are told th a t we m u st get used
to a reduced sta n d a rd of living by p ay ­
ing heavy taxes and b u y in g W ar
Bonds. W ell and good, b u t by th e
sam e token w e have th e rig h t to ask
o u r g o v ern m en t to adopt th e sim ple
life as well. Our people are dem and­
ing econom y in g o v ern m en t — city,
sta te and n atio n .”
E van R andolph, p resid en t of th e
P h ilad elp h ia N ational B ank, has been
appointed to th e board of d irecto rs of
th e B rew ster A eronautical C orpora­
tion. T he B rew ster p lan ts are located
a t Long Islan d City, N ew ark and
Johnsville, P ennsylvania. The U nited
S tates N avy took over th is p la n t and
its m an ag em en t recen tly because th e
m an ag em en t had n o t been satisfacto ­
rily d elivering th e co n cern ’s fighter
an d dive bom ber planes.
B an ks of the U nited States now hold
one-half of all of the T reasury Bonds,

according to a recen t re p o rt m ade by
th e T re a su ry D epartm ent.
B anks held alm ost exactly half of

NEWS

•

th e ou tstan d in g T reasu ry and T reas­
u ry -guaranteed issues of th e interestbearing, public m a rk e t type o u tstan d ­
ing on M arch 31st.
A tre a su ry surv ey show s th a t of
$48,995,000,000 of th is type of securities
o utstanding, 6,277 banks held $24,756,000,000 w orth, 757 in surance com panies
held $7,996,000,000, individual and other
p riv ate investors held $11,363,000,000,
and g o vernm ent tru s t funds and the
F ederal R eserve B anks held $4,880,000, 000.
W estbrook P egler believes th a t the
lack of tires and gasoline m eans the
end of golf, and, as far as he is con­
cerned, he seem s to be glad of it.
He expresses his view s by saying:
“Golf w as, 1 should say, offhand, the
m ost u sele ss outdoor gam e ev er de­
vised to w aste the tim e and try the
sp irit of m an. It w as a w a lk in g gam e
and so, as any p ostm an ’s p hysician
w ill attest, tended to shake dow n the
victim ’s p lum bing into a jum ble in his
flabby abdom en w h ile try in g no m us­
cle but th ose of the legs. It prom oted
sunburn, ap oplexy and alcoholism , do­
m estic in felicity and indolence and
m any a fraud in real estate or stock s.”
V ictor C ullin, p resid en t of th e F i­
nancial A dvertisers A ssociation, in a
recen t le tte r to th e N orthwestern
B anker, em phasized the need of all
b anks now to continue th e ir a d v ertis­
ing and public relations program w ith
th e ir p resen t custom ers and w ith th e ir
new ones if th ey expect to continue to
hold th e ir business and th e ir place “in
th e su n ” w hen th e w ar is over.
In th e w ords of Mr. Cullin, “W hen
th is w ar is over m any banks w ill find
th e ir best accounts being m anaged by
m en w ho are com plete stran g ers, u n ­
less these banks are far-sighted enough
to keep in contact w ith th e ir custom ­
ers constantly—m uch m ore often than
th e y have been contacted before.
“If you believed th a t you should ad­
v ertise before th e incident of P earl
H arbor, th en you m u st believe m ore
strongly th a n ever th a t you m u st ad ­
v ertise now. If you have arriv ed at
any conclusion o th er th a n th is—y o u ’ve
already dug a ru t th a t m ay develop
quicksand before you can tow yourself
out.
“If you believed in an aggressive
solicitation of new business before
P earl H arbor, th e n ‘how in th e nam e
of all th a t’s holy can you a rriv e at

any conclusion th a t w ill cause you to
slow dow n in th is effort?’ You m u st
get acquainted w ith th e new people in
y o u r m idst — w hen populations shift
and change—th ey forget quickly—and
you w ill be forgotten in th e shuffle if
you don’t w atch out.”
R. R. R ollins, vice presid en t of th e
B ankers T ru st Company, w as the “m as­
te r of cerem onies” a t th e ir banquet
w hich th ey gave a t th e W akonda Club
for officers and directors and em ployes
on th e m em orable occasion of th e 25th

THE

P ublic
National
B ank
AND
TRUST COMPANY
OF NEW YORK
IServIcte— M aintaining an
intimate, personalized corre­
spondent bank service.

Experience—Officials with
years of service in this field,
assuring a knowledge of re­
quirements and valuable as­
sistance.
Policy — To cooperate with
out-of-town hanks rather than
compete for business which is
rightfully theirs.

ESTABLISHED 1908
M EM BER

A ssista n t Cashier in c o u n try b ank
w an ts ch an g e. T w enty-five y e a rs e x p e ri­
ence. A v ailab le now o r la te r. W rite
E. A. 0 ., c a re N o rth w e ste rn B an k e r.

N E W Y O R K C L E A R IN G H O U S E A S S O C IA T IO N
F E D E R A L D E P O S I T IN S U R A N C E C O R P O R A T I O N

Northwestern Banker

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

July 19J2

64

* IOWA
a n n iv e rsa ry of th e founding of th is
very fine in stitu tio n . Gifts w ere p re ­
sented to all m em bers of th e staff w ho
had been associated w ith th e b an k for
10 y ears or longer, and special prizes
w ere p resen ted to B. F. Kauffm an,
president, w ho founded the com pany
on Ju n e 1, 1917.
The delightful evening w as finished
w ith a quiz program , based en tirely on
questions w hich had to do w ith the
b ank and its operation. Such ques­
tions w ere asked as: “How often does
th e F. B. I. exam ine th e b a n k ? ”, and
“H ow m any w ar bonds w ere sold in

MASON CITY, IOWA

BANK SUPPLIES
Addressing Machines . . . . Adding Machines
Duplicating Machines............Electro-Copyist
Equipment . . . Ozalid Whiteprint Process
Typewriters . . . Ediphone Voice Writing
Friden Calculators

KOCH BROTHERS
Printers . . . Bookbinders . . . Office Outfitters
Stationers . . . Business Machines
Grand Avenue at Fourth Street
DES MOINES

DES M O IN ES B U ILD IN G -LO A N &
S AV IN G S A S S O C IA T IO N

Oldest and Largest
in Des Moines
411 6th Ave.
ELMER E. MILLER
Pres, and Sec.

Dial 4-7119
HUBERT E. JAMES
Asst. Sec.

Member Federal Home Loan Bank System

( W z ^ itin c j
C o u n s e l

%(JÍCE±
o n

B a n k

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

Northwestern Banker

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

July 1942

NEWS

*

th e last th ree m o n th s?”, and “How
m uch does th e door to th e safe deposit
v a u lt w eigh?”
A t each plate w as placed a folder
show ing the statem en t of condition of
th e b ank on Ju n e 1, 1917, w hen th e
deposits w ere $485,000, and on Ju n e 1,
1942, w hen th ey w ere $27,249,000.
E. A. H ayes, presid en t of the C entral
States M utual In su ran ce A ssociation,
w ro te A rthur T. D onhow e, vice p resi­
den t of th e C entral N ational B ank and
T ru st Com pany of Des Moines, th e fol­
low ing letter:
“I noticed in th e N orthwestern
B anker an item about a ban k in a
sm all tow n th a t th o u g h t th ey had
m ore deposits p er capita th a n any
b ank in th e U nited States. W hy not
check y our records on th e Pilot Grove
b an k and give th em a little publicity
since th e ir population w as 65, I be­
lieve, at th e last census. This should
give them a p er capita deposit of over
$10,000 per person. T his m u st be a
w orld record.”
The P ilot Grove Savings B ank has
deposits of over $707,000, and w ith a
population of 65, th is is a per capita
deposit of $12,410, and we are quite
su re th a t th is is p re tty close to an alltim e high for any com m unity in th e
country.
Officers of this progressive b ank are
J. .1. N ieh ting, president; J. B. Steffensm eier, cashier, and T heodore Schinstock, vice president.
Oscar A m eringer, in his book “If
You D on’t W eaken,” gives us th e o ri­
gin of the te rm “hitch-hiker,” w hen
he says:
“I learned how the term ‘hitch-hiker’
o riginated from an old m an I m et in
Ohio in 1890. W hen tw o m en, w ith
only one horse betw een them , w ent on
a journey, one m an w ould m ount and
ride an allotted distance, dism ount and
h itch th e horse to a tree or fence and
proceed on foot. T he o ther m an w ould
w alk u n til he came to th e horse, th en
ride on u n til he caught up w ith the
h ik e r.”
Tom R. W atts, w ho is now in th e in ­
v estm en t and insu ran ce business at
G rand Junction, sent th e N orthwest­
ern B anker a postcard given him by
A. M. H end erson of S tory City, and
2 0 th y e a r p l a n n i n g a d v e r t i s i n g p r o g r a m s
fo r b a n k s a n d tr u s t c o m p a n ie s .
M em ­
ber
F in a n c ia l
A d v e r tis e r s
A s s o c ia tio n .

P u b l i c

R e l a t i o n s

d \ i\ o L n z i, a ,ovaa

p resid en t of th e Iow a B ankers Asso­
ciation from 1922 to 1923.
The postcard show s a p icture of “Me
and m y A lm a M ater,” w ith A. M. H en­
derson standing by th e fence in fro n t
of the old schoolhouse w hich w as b u ilt
by his fa th e r in Scott tow nship, H am il­
to n county, Iowa, in th e y e a r 1860. On
th e rev erse side he says: “In 1873,
a t th e age of four, I en tered as a
F resh m an and GRADUATED IN 1884,
a t w hich tim e th e last fifty pages of
m y McGuffey’s F o u rth R eader w ere
still unsoiled and unexplored by m e.”

H O W M U CH W O U LD YO U
L O A N ELMER BLURP?
(C ontinued from page 11)
on sheep, not broken or spread m outh.
A nything below th a t is entitled to a
low ering ra te of in terest, depending
upon th e excess m argin of security.
H orses and m achinery w ith no loan
value, because of th e fact pow er is
never sold, b u t gets older or d epre­
ciates and trad ed in for a new tra c to r
or young colts raised to su p p lan t aged
horse pow er.”
“T herefore this m an could borrow
$500 m axim um on his livestock and
m achinery and horses. If th e tra c to r
is new ly purchased, th e n th e tra c to r
deal on a conditional sales contract
w ould be carried sep arately and allow
him $200 of th e $500 for ex tra feed
w hich he w ill need, and other ex­
penses. His AAA check w ould assist
him in seasonable expenses, by an ad­
vance on it, after Congress passes the
ap p ro p riatio n and his fields have been
m easured to comply.
“W ere th is m an to be able to get
along w ith a loan of $500 th e ra te
w ould be TV2 per cent; $450, 7 per cent;
$400, 6 V2 per cent; $350, 6 p er cent.
“If he w ere dow n to th e loan of
$450 we w ould assist him in a few
ex tra feeder hogs if he could arran g e
feed for them . This feeder loan being
on a 5 p er cent rate. T his graduated
in te re st rate places banks, w e think,
in a p referred position to com pete w ith
PCA com petition.”

Nebraska, Dawes County
H ere is an o th er reply from N ebras­
ka, and you can see th a t it is differ­
ence of opinion th a t m akes horse-rac­
ing possible:
“On the loan to Elm er, th is is h ard ly
on our style of cattle. As you know,
H erefords are our pride and joy, but,
I th in k E lm er is w o rth y of some help,
so; as a new loan 19 head cattle at $20
w ould be $380, as an original loan,
secured by th e cattle on m ortgage.

65

* IOWA
T his leaves th e hogs for him to live
from , th e crops for ren t, etc. Still, in
the w in te r we can go a bit m ore u n d er
p re se n t prices to get him into a new
year; th a t is, if it becam e absolutely
n ecessary u n d e r an em ergency, and
w e did n t w an t to p u t him out of b u si­
ness by selling cattle to pay. Of course,
if a m an isn ’t w o rth y of stick in g w ith
if a bit of tro u b le hits, w hy loan him
to s ta rt w ith ? ”

Editor’s Note—This concludes the
series of two articles on “How Much
Would You Loan to Elmer Blurp?”,
and we hope you have found them
interesting. Without doubt there are
other matters of bank operation which
you wiuld like to have discussed in
T he N orthwestern B anker. Tell us
what they are, and we will publish
what other bankers have to say about
them.

A . B. A . Cancels Its
Convention
M em bers of th e A m erican B ankers
A ssociation th ro u g h o u t th e co u n try
have been notified th a t th e a n n u a l con­
v en tio n of th e A ssociation, scheduled
th is y e a r for Septem ber 27th-30th in
D etroit, has been calcelled in recogni­
tio n of th e grow ing w ar-tim e tra n s p o r­
tatio n needs of th e nation.
In a le tte r addressed to A. B. A.
m em bers, H en ry W. K oeneke, p resi­
d en t of th e A ssociation, stated th a t th e
a d m in istrativ e com m ittee of th e Asso­
ciation “voted u n an im o u sly to cancel
plans for th e convention. T his action,”
he said, “is in h arm o n y w ith th e r e ­
quest of Joseph B. E astm an , directo r
of th e Office of D efense T ra n sp o rta ­
tion, w ho has u rged th a t all o rganiza­
tions w ith large m em berships cancel
or skeletonize th e ir conventions in o r­
der th a t u n in te rru p te d m ovem ents of
troops and supplies m ay be assured.
Since th e co n stitu tio n and by-laws of
th e A m erican B an k ers A ssociation
m ake no provision for a skeleton or
re stric te d form of convention, such a
m eeting is n e ith e r possible n o r d esir­
able,” he added.

Heads Chest Drive
H arold P. K lein, a ssista n t vice p resi­
den t of th e Iowa-Des M oines N ational
B ank & T ru s t Com pany, has been
nam ed ch airm an of th e executive com­
m ittee for the C om m unity C hest cam ­
paign, w hich s ta rts in Des M oines nex t
October 16th. A ssociation w ith th is im ­
p o rta n t bran ch of civic activ ity is not
new to Mr. Klein, since in p ast y ears

NEWS

•

he has been a m em ber of th e banking
solicitation team , ch airm an of the in ­
d u strial com m ittee, and a m em ber of
th e C om m unity Chest executive com­
m ittee.

WTR.J. FLYNN , Pres.

D.L.DUNGAN. Secy.J^

Je m n
A dve
... "- . !.

7

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S in c e
A

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l i s
IN C .

1907

i n

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Co.

/S 1

Iowa’s Largest Business Training School
Many banks, bond-houses, insurance
companies and other financial insti­
tutions employ A. I. B. graduates.
Write or telephone when you need
efficient office employes.
E. O. FENTON, Director

American Institute of Business

L DES

M O I N E S

j

DES MOINES
10th and Grand
Tel. 4-4221

And ex Ob ¿Advertisers
L

A

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

21
24
65
59

B
B a n k e r s T r u s t C o m p a n y ................................50-5 1

C
C e n t r a l N a t i o n a l B a n k a n d T r u s t C o.. . . 8
C ity N a tio n a l B a n k a n d T r u s t C o m p an y
— C h i c a g o ............................................................... 27
C o n tin e n ta l Illin o is N a tio n a l B a n k an d
T r u s t C o m p a n y ................................................... 52
C o n t i n e n t a l N a t i o n a l B a n k — L i n c o l n . . . 47
D

D a v e n p o r t a n d C o m p a n y , F . E ...................... 58
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 ...................................... 61
40
32
20
45

F
F a r m e r s M u t u a l H a i l I n s u r a n c e C o ..........
F e d e r a l I n t e r m e d i a t e C r e d i t B a n k ..........
F ir s t a n d A m erican N a tio n a l B a n k —
D u l u t h ......................................................................
F i r s t N a t i o n a l B a n k — C h i c a g o ....................
F i r s t N a t i o n a l B a n k — O m a h a .......................
F i r s t N a t i o n a l B a n k — S i o u x C i t y ...............
F ir s t N atio n al B an k and T ru st C om ­
p a n y — M i n n e a p o l i s ........................................
F i r s t W i s c o n s i n N a t i o n a l B a n k ..................

M

M erch a n ts M u tu al B o n d in g C o m p an y . . .
M e r c h a n t s N a t i o n a l B a n k .................................
M in n e a p o lis M o lin e P o w e r I m p l e m e n t
C o m p a n y .................................................................
M i n n e s o t a C o m m e r c i a l M e n ’s A s s n ............
M i s s i s s i p p i V a l l e y T r u s t C o m p a n y ..........

34
36
58

N
N a t i o n a l B a n k o f W a t e r l o o ............................
N o r t h e r n T r u s t C o m p a n y .................................
N o r t h e r n N a t i o n a l B a n k o f D u l u t h ..........
N o rth w e ste rn N ational B an k an d T ru st
C o m p a n y .................................................................

55
26
35
31

O l s o n , W . R ................................................................. 37
O m a h a N a t i o n a l B a n k ......................................... 17

P
P h i l a d e l p h i a N a t i o n a l B a n k ............... .. . . .
P u b l i c N a t i o n a l B a n k a n d T r u s t C o .........

46
63

H
I l a d i s s o n H o t e l ........................................................ 36

30
37
44
53

S t o c k Y a r d s N a t i o n a l B a n k — S t. P a u l . .
S o u t h D a k o t a S t a t e H i g h w a y C o m ............

28
56
62
3

1

S
33
40

T

T o d d C o m p a n y .......................................................... 27
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 . . 36
IT
U n i t e d S t a t e s N a t i o n a l B a n k ....................... 42
U. S. 0 ................................................................................ 20
U n i t e d S t a t e s T r e a s u r y ...................................... 22
V

Io w a -D e s M o in es N a tio n a l B a n k a n d
T r u s t C o m p a n y ......................................, . . . . 68

V a l l e y S a v i n g s B a n k ........................................... 67

.)

W a n t A d s ........................................................ 5 7 -6 1 - 6 3
W a l t e r s , C h a r l e s E ............................................... 46
W e l c h , J a y A .............................................................. 59
W e s s l i n g S e r v i c e s ................................................ 64
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 .......... 21
W h e e l o c k a n d C u m m i n s .................................... 24

J a m i e s o n a n d C o m p a n y ...................................... 36

K
K l i p t o L o o s e L e a f C o m p a n y ............................ 64
K o c h B r o t h e r s .......................................................... 64

\V

Northwestern Banker

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

62
2

62
25

II
H a w k e y e M u tu a l H a il In s u r a n c e A sso..
H o m e I n s u r a n c e C o m p a n y ..............................

4
65
57
48
38

O

E
E l m s H o t e l ..................................................................
E m p i r e N a t i o n a l B a n k a n d T r u s t C o .. . .
E m p lo y ers M u tu al C asu a lty C o m p a n y ..
E p p l e y H o t e l s C o m p a n y ...................................

G e o r g e L a M o n t e a n d S o n .................................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................
L ive S to ck N a tio n a l B a n k — C h ic a g o ...
L i v e S t o c k N a t i o n a l B a n k — O m a h a ..........
L iv e s to c k N a tio n a l B a n k — S ioux C ity . .

July 19^2

66

IN THE DIRECTORS' ROOM
And the Price?

Storm y Night

“T he idea! A ccepting gifts from a
stran g e m an. You don’t know w h a t
y o u ’re g ettin g in to ,” storm ed th e m o th ­
er. A nd th e d au g h ter replied, “Yes, I
do; a m in k coat!”

M uch B etter
W hen she w as good, she w as very,
v ery good,
B ut w h en she w as bad she w as b e t­
ter.

N ot G u ilty
Judge: “W ho w as driving, w hen
you collided w ith th a t car?”
D ru nk (triu m p h a n tly ): “None of
us, we w ere all in th e back seat.”

R igh t!

Too Much

A ctor—One of th e re sta u ra n ts h ere
in H ollyw ood has nam ed a sandw ich
a fte r me.
Critic—D eviled ham , eh?

Young Man: “If a m an takes a girl
to dinner, th e n to th e th eater, tre a ts
h e r to a n ig h t club after, and th en
tak es h er hom e in a taxi, should he
kiss h er good n ig h t?”
Old Bachelor: “I don’t th in k she
ought to expect it. Seems to me he has
done enough for h e r already.”

Ready to Go
P lu n k e tt—W ere you su rp rised w hen
you got th e nom ination?
Conroy—I ’ll say. My acceptance
speech n early fell out ctf m y hand.

Good Food
“A nd w h at,” asked th e teacher, “do
tw o ducks and a cow rem in d you of?”
“Q uackers and m ilk,” replied W illie.

Fowl Play
R ufus—W h at y o ’ all doing now,
Rastus?
R astu s—R ight now A h’s doing nuffing, b u t Ah could hab had a job w ith
one of th em th e re A rctic explorers.
R ufus—H ow come yo’ done d id n ’t
tak e it?
R astu s—Me? A h ’s no black Byrd!

Change of Scene
“On m y trip to South A m erica I
saw a lot of beautiful pan o ram as.”
“I th o u g h t you prom ised me you
w ou ld n ’t ru n aro u n d w ith those native
girls.”

H eart Trouble
“Now, th en , let m e listen to your
h e a rt beat, Miss R oundkurvz. Hmm.
I t ’s beatin g a trifle fast. I ’m afraid
you’re a bit n ervous and excited.
T h a t’s rig h t, p u t y o u r arm s aro u n d
m y shoulder to steady y ourself.”
“Aw w ight, doctor. Mind if I lean
on ’oo a bit? I ’s tin d a w eak.”
“Not at all, Miss R oundkurvz
not
at
all. Hm m . T h-that
h e a rt of yours. Yes, I ’d s-s-s-say y o u ’re
a b-b-b-bit n-n-nervous and exc-c-ccited
. c-c-c-calm y o urself
ah-h-h-h
uhm m m m m m m . Miss
R oundkurvz! Get th e hell out of here!”

Northwestern Banker

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

July 19'f2

Keeping Up a F ront
Psychology T eacher—A nsw er this
question. W hen do m arried couples
look th e ir hap p iest?”
S tu d ent—W hen th e y ’re sittin g on
th e ir fro n t porches.

Good Spender
“H ere’s a penny, m y good man. Tell
me how did you become so d estitu te?”
“Oh, I w as like you, m a’am —alw ays
giving aw ay v ast sum s to th e poor
and needy.”

Song Contest
Com poser—I got tig h t in order to
com pose a new d rin k in g song?
P rod ucer—And did it work?
C om poser—No, I couldn’t get be­
yond th e first tw o bars.

Too Strong
T o u rist (to n ative onlooker): “I
suppose th a t in these isolated p arts
th e necessities of life come p re tty
high.”
N ative: “Y’er right, stran g er, an ’ it
a in ’t w orth d rin k in g ’ w hen ye get it.”

Kiss Again
“I t’s nice to kiss in a shady p ark in g
place, b u t th e boyfriend doesn’t stop
th ere.”
“You m ean
?”
“Yes, he keeps rig h t on driving.”
“I certain ly got a big check out of
th is b an k er friend of m ine.”
“W h at did you catch him a t? ”
“A t the height of his career.”

D runk (to splendidly uniform ed by­
stander) : “Shay, call me a cab, w ill
y u h ?”
Splendidly U niform ed B ystander:
“My good m an, I am n ot a doorm an;
I am a naval officer.”
D runk: “A lright, th e n call me a
boat. I gotta get hom e to n ight.”

Must Have Been
“A re you positive th a t th e defend­
a n t w as d ru n k ? ”
“No doubt,” grow led Officer Jones.
“I saw him p u t a p enny in th e patrol
box on F o u rth Street, th e n look up at
th e clock on the P resb y terian C hurch
and shout, ‘My, I ’ve lost fourteen
p o unds’.”

Soft Music
“So everybody a t th e p a rty w as
su rp rised w hen you sat dow n a t th e
piano?”
“I ’ll say. T hey all knew I had ju st
come back from m y first horseback
ride.”

A L ittle H int
Jack: “I u n d erstan d you are co u rt­
ing th e widow. H as she given you any
encouragem ent?”
Joe: “I ’ll say she has. L ast n ig h t
she asked me if I snored.”
“You can blam e m y fath er for th e
w ay I d rin k .”
“Oh, you get y o u r taste for liquor
from him ?”
“No, I got th e m oney from him .”
“My husb an d succeeds w here others
fail.”
“How in terestin g !”
“Yes, h e’s an auctioneer a t b a n k ru p t
sales.”
“The w ay our d au g h ter carries on
is aw ful.”
“T here ought to be a law .”
“Yes, a son-in-law.”
“You’re th e sw eetest girl in 48 states.
Can I say m ore?”
“Yes, you can add th e state of m a tri­
m ony and m ake m e th e sw eetest girl
in 49 states!”
Shoem aker—H ow in th e w orld did
yo u r shoes ever get in th is fix?
A1—W ell, w hen I m arried I got a
b eautiful wife and a m other-in-law to
boot!

1
!

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A tt ention
Assures prompt and
satisfactory handling
of your Des Moines
transactions

ALLEY
AVING
D E S M O IN E S
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o ra t io n

Frederick M. Morrison, President; Winfield W. Scott, Vice President; J. R. Astley, Cashier
Edward P. Kautzky, Assistant Vice President; Roy E. Huber, Assistant Vice President
F rank M. Thompson, Assistant Cashier; Ray Thompson, Assistant Cashier


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Federal Reserve Bank of St. Louis

★

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M em b er F e d e r a l D ep o sit In su ra n ce C orporation


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