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JULY 1943 H. BAICTORY R. K U R T H President, M innesota Bankers A ssocia tion President, C itizens Bank, H utchinson, M innesota See Page 16 BUY U N IT E D STATES WAR BONDS AND STAMPS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis How the W ar Has Come to the Farm Page 22 <«r <«r <*c <Tr ^ ^ ^T ^ ^ ^ ^ >> » ^ ^ ^ <t < -*4 A correspondent account with this bank guarantees prompt handling of checks, notes, drafts, and collections. It provides unusual facilities for credit information and other *£ *4r 4r -£ «£ -€ bank-to-bank services. More and more bankers throughout the middlewest are finding it profitable to carry an account with this institution. < *e ACEDAR RAPIDS BANK CEDAR R A P IO S < < < <r SERVICING ALL IOWA MERCHANTS < « NATIONAL BANK < <F < OFFICERS ^ ^ ^ <c <■ J ames E. H amilton , Chairman S. E. Coquillette, President H. N. B oyson, Vice President R oy C. F olsom, Vice President Mark J. M yers, V. Pres. & Cashier George F. M iller, V. Pres. & Tr. Officer Marvin R. Selden, Vice President F red W. S m ith , Vice President J ohn T. H amilton II, Vice President R. W. Manatt , Asst. Cashier L. W. Broulik , Asst. Cashier P eter B ailey , Asst. Cashier R. D. B rown , Asst. Cashier O. A. K earney , Asst. Cashier Stanley J. M ohrbacher. Asst. Cashier E. B. Z banek , Building Manager *''40 $ Cedar Rapids Iowa Member Federal Deposit Insurance Corporation ^ ^ ^ > > > A> ^ N orthwestern Banker published m onthly by the De P uy Publishing Company, at 527 Seventh St., Des Moines, Iowa. Subscription 35c per conv S3 no Entered as Second Class M atter January 1, 1895, at the P ost Office at Des Moines, Iowa, under A ct of March 3? 1879 $3'° ° Per year‘ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BUYING important so u h o wavy hneS aW e , Soldiers and Checks ËK. register with nutley b ¥ °' as well as the face. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ONTE & SON The wavy lines are a La Monte trade-mark -* Official U. S. Navy photograph Moreover, they are still further proving their teamwork ability by patriotically cooper ating with our company in its modest contribu tion towards national war financing through Blinding speed, armored planes and devastating the Ninetieth Anniversary War Loan campaign, firepower have eliminated the individual ace— which provides that: the “ knight of the air” — from modern aerial All new gross premiums collected on fire warfare. Now it is the perfect coordination in and other policies that the Home writes for the precision teamwork of every echelon and every balance of the year are being invested in War squadron that “ rings the bell” in air battle. Loan Bonds. These purchases are OVER and That is why American fighters and bombers ABOVE the normal government bond pur are writing such glorious new pages in history. chases ivhich the company is continuing to Americans are brought up on teamwork— in make. play, in business and in war. In the fire insur ance industry, for example, despite the handi In the air or on the ground, teamwork is the American way— the short-cut to Victory! caps of the manpower shortage and drasticallycurtailed transportation, agents are continu ing to bring insurance protection to American homes and industries. And besides giving * THE HOM E * efficient service to policyholders, agents are active in civilian defense— another important form of protection. NEW FIRE ★ AUTOMOBILE Ninetieth Anniversary Year https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Y O R K ★ MARINE INSURANCE 5 THE CHASE NATIONAL BANK OF THE CITY O F NEW YORK S ta te m e n t o f C o n d itio n , Ju ne 30, 1943 RESOURCES C ash D ue and from Ba n k s .................................................................... $ U . S. G o v e r n m e n t O bl ig at io n s , direct a n d f u lly g u a r a n t e e d .................................................................................................. S ta te and Stock of M unic ipa l S e c u r i t i e s ........................................................ F ed er al R ese rv e B a n k ....................................................... O t he r S e c u r i t i e s ............................................................................................ L o an s , D iscounts and B anking H ............................................................................................ o u ses B a n k e r s ’ A cc ep ta nc es ................................ O t he r R eal E s t a t e ...................................................................................... M o r t g a g e s ........................................................................................................ C us t o me r s ’ A cceptance L i a b i l i t y ....................................................... O t he r A s se t s .................................................................................................. 943,768,352.68 2,548,663,686.79 77,379,783.82 6,016,200.00 122,814,076.28 717,908,709.96 36,215,027.42 5,432,358.29 7,327,882.90 4,101,112.50 12,979,244.50 $4,482,606,435.14 L IA B IL IT IE S C api t al F u n d s : ............................................................$100,270,000.00 C api t al S t o c k Su ...........................................................................100,270,000.00 r p l u s 49,842,417.63 ' $ 250,382,417.63 D iv id en d P a y a b l e A ug ust 2, 1943 ............................................ 5,180,000.00 R ese r ve for C o n t i n g e n c i e s ................................................................... 15,252,664.25 R ese r ve for T a x e s , I n t e r e s t , et c . ................................................. 5,855,792.88 D e p o s i t s ............................................................................................................... 4,193,352,244.27 A cceptances O u t s t a n d i n g ............................... $ 10,019,894.95 L ess A m o u n t in P o r t f o l i o ............................... 5,540,766.71 4,479,128.24 L i a b il it y as E ndorser on A cceptances a n d F oreign B ills . 41,573.12 O t he r L i a b i l i t i e s ............................................................................................ 8,062,614.75 $4,482,606,435.14 U nd iv id e d P r o f it s ........................................... United States Government and other securities carried at $741,894,297.50 are pledged to secure U. S. Government War Loan Deposits of $513,420,301.82 and other public funds and trust deposits, and for other purposes as required or permitted by law. Member Federal Deposit Insurance Corporation Northwestern Banker July https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 Mr. B a n k e r ... Field Warehousing Gives You These Important Advantages 1: Enables you to take on new borrowing accounts with safety because Field Warehouse Receipts provide you with first security on a borrower’s in ventory and a control of the proceeds of sales of that inventory. 2: Permits you to extend increased lines of credit to deserving customers. 3: Gives you increased earning power. 4: Low cost of Field Warehousing service makes un secured or poorly secured loans unnecessary. Here Are Some of the Many Types of Inventories That Are Being Field Warehoused Today STEEL AND IRON SEED CORN AND FIELD SEEDS GROCERIES — WHOLESALE CANNED GOODS LUMRER AND HOLDING MATERIALS WOOL COAL AND COKE PETROLEUM PRODUCTS WOOLEN AND COTTON GOODS EGGS Shell. Frozen, Powdered SOY REANS W h y not m a k e use of our Field W a reh o u sin g Service to safegu ard loan s . . . to increase profits? Our Iow a office will g iv e prompt, careful attention to your inguiry. Free consultation service obligates y o u in no w a y w hatever. St. Paul Terminal Warehouse Company St. Paul. M inn esota IO W A OFFICE 510 Iow a-D es M o in es N ational Bank Building D es M o in es, Iow a T. C. C A N N O N , DISTRICT M A N A G E R T elephone 4-2353 OTHER OFFICES AT: CHICAGO • DETROIT • NEW YORK • MEMPHIS • ATLANTA • PITTSBURGH • MILWAUKEE Northwestern Banker July 19b3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 Ralph Bunce was with me so we put up our charts and told them our story just to give them an indication of the extra curricular work the Iowa Department of Banking is doing. ’ ’ M el W. E l l is , Superintendent Department of Panicing State of Iowa "A Letter to Uncle Sam " The following letters were received from Northwestern Banker readers. Your views and opinions on any subject will be gladly published on this page. "Interesting Correspondence" ‘ ‘ My correspondence is becoming more and more interesting, and, as George Cosson says, we are at least starting some thought on post-war money questions. The fact that you voluntarily published my ten suggestions in the N orthw estern B anker I think has given force to the argument. “ Recently I sent my material to Presi dent Hansen of the State University of Iowa, stating that if it looked interesting to him to have it presented at the InterAmerican Conference. His secretary wrote me that he was absent from the city but my communications were turned over to Hr. C. A. Phillips, Dean of the College of Commerce. I do not have the report as yet. “ Walter Lippmann’s secretary wrote me a very gracious letter thanking me for my material and stating that Mr. Lippmann was away on his vacation but it would certainly be called to his attention on his return. “ Ex-president Hoover, with whom I have corresponded, in the Hoover-Gibson articles as published in the current Collier’s magazine, stated that we must have inter national stabilized currency. Up to this time no one, in all my correspondence, has objected to the return of international bimetalism. G. M. Titus, President Titus Loan and Investment Company, Muscatine, Iowa "Bring Back Memories “ Really difficult for me to keep up per sonal correspondence except when some one like you sort of ‘ jars’ me into real izing that life has its more pleasant sides, too. “ We are going to pull off a dinner meeting in connection with our annual stockholders ’ meeting this year on July 20th, in celebration o f twenty-five years of banking history behind us. I f this goes well and is favorably received by the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis stockholders, expect it will be an annual event. Our comparative earnings for the period up until the 15th of June show an increase of over $1,000 over a year ago, with loans down almost $30,000. Making 90 per cent of our loans on a time payment basis with very few real estates. “ Enjoy reading the N orthw estern B an k er each month, which usually takes place late at night just before turning out my light. The pictures, of course, of the fellows I know in Iowa sure look good to me. Noticed Hugh McCleery of Laurel, formerly cashier of the Grinnell State, in the last issue. With his pipe in hand it brought back memories of the many times he would place his lighted pipe in his coat pocket. I can see him yet jumping around and pounding his pocket to put out the fire. ’ ’ O. M. A m a n n , Cashier Farmers and Merchants Panic Rudolph, Wisconsin "The Editorials Are Good" ‘ ‘ A lot of education is gained by me from reading the N orthw estern B a n k e r . Copies have been coming to my desk for a good many years. ‘ ‘ The editorials are good. ‘ Twenty Years of Banking from 1922 to 1942’, an edi torial in the last issue, was particularly good, as well as the other editorials in that issue. ’ ’ O rval W . A dam s , Vice President Utah State National Panic Salt Laice City, Utah, and Past President of the American Panicers Association. "Extra-Curricular W ork" ‘ ‘ Thanks very much for the excellent re production of the charts on page 15 of the June issue of the N orthw estern B an k e r . I also appreciate the space given to talk. “ I was called upon to talk to the Super visors of State Banks at a meeting of 19 states in Kansas City the other day. (Editor’s Note— The following, although not a letter to us, was an open letter appear ing in the local newspaper in Montevideo, and we believe well worth publication in every community.) “ DEAR UNCLE: “ Out in western Minnesota’s best farm ing country, we who work in the Security National Bank issued War Bonds during the April Second War Loan campaign to the cash-value amount of $204,111.50. “ Don’t misunderstand us. W e’re not bragging about the volume of bonds bought through us. Nor about the amount of work we did writing them out. (A l though we feel it is all right to point out that this work is done without pay or profit to our bank or to any other bank doing similar work.) ‘ ‘ And we assure you of our readiness to pitch in and help every time a War Loan campaign come along. We feel it our duty to do this volunteer, unpaid service just as many of our neighbors in this commu nity are doing. “ We are handling 128 active Ration Bank Accounts. Another non-profit line of work. “ Investments by this bank of funds in U. S. Bonds amounts to $1,730,000. “ WE ASK YOU NOW TO REALIZE that banks have to ‘ make a living ’ in order to be able to carry on the many forms of war work. They have to make a living if they are to pay rent and taxes; bread and butter to employes; and at least a small rate of interest to savings de positors. “ SO, UNCLE SAM, we ask for your co operation, too. Let’s not have any more —rather let’ s have less— of the credit agencies that operate on subsidies from you and take business away from local banks. You cripple enterprise when you go into the lending business with Federal subsidies. ‘ ‘ Another thought— Don’t ask for cum bersome and unnecessary reports. And we know you will try to be careful and make good use of the money that your citizens have dug up out of their hard work.” Yours Actively for Victory, T he S ecurity N ational B a n k Of Montevideo, Minnesota "The Banker and the Exporter" “ Enclosed please find a copy of my booklet ‘ The Banker and the Exporter.’ “ Because of the increased use of let ters of credit, the information contained in the booklet, and particularly the text of the Uniform Customs and Practice should be of interest to bankers. “ I should appreciate your listing the book let in the N orthw estern B an k er , mention in g that it m ay be obtain ed fre e upon re quest. ’ ’ A. M. S trong , Foreign Department Public National Panic and Trust Company of New Yoric Northwestern Banker July 19^3 I r v in g T r u st C o m pa n y ONE WALL STREET • NEW YORK Statement o f Condition, June 30, 1943 ASSETS Cash on Hand, and Due from Federal Reserve Bank and Other Banks . . . U. S. Government Securities............................. ............................................... Other Securities................................................................................................... Stock in Federal Reserve B a n k ......................................................................... Foans and Discounts ........................................................................................ First Mortgages on Real Estate......................................................................... Headquarters Building........................................................................................ Other Real E sta te............................................................................................... Fiability of Customers for A cceptan ces........................................................... Other A ssets........................................................................................................ $203,704,260.26 655,260,719-05 2,250,272.81 3,088,100.00 163,910,370.62 8,877,956.43 16,887,600.00 721,367.50 1,359,516.61 2,625,987.37 $1,058,686,150.65 FIABILITIES $942,663,032.52 3,334,650.44 $945,997,682.96 $3,257,838.55 1,401,919.13 1,855,919.42 ................................................................... 2,250,164.25 ................................................................... 750,000.00 ................................................................... 550,490.12 . . ...................... 1,941,909.24 $50,000,000.00 55,339,98 4.66 105,339,984.66 $1,058,686,150.65 D e p o s it s ................................................... Official C h e c k s ........................................ Acceptances............................................... Less Amount in P o r t f o l i o ...................... Reserve for Taxes and Other Expenses . Dividend payable July 1, 1943 ............... Other Liabilities........................................ Unearned and Deferred Income . . . . Capital S t o c k ............................................ Surplus and Undivided P r o fits ............... United States Government Securities are stated at amortized cost. Of these, $116,020,551.25 are pledged to secure deposits of public monies and for other purposes required by law. Member Federal Deposit Insurance Corporation BOARD HARRY E. W ARD Chairman of the Board O. L. ALEXANDER President Pocahontas Fuel Company Incorporated HENRY P. BRISTOL President Bristol-Myers Company W . GIBSON CAREY, Jr. President The Yale & Towne M fg. Co. REID L. CARR President Columbian Carbon Company Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EDWARD H. CLARK Chairman of the Board Cerro de Pasco Copper Corporation JOHN F. DEGENER, Jr. C. A. Auffmordt & Co. OF DIRECTORS WILLIAM N. ENSTROM President HAROLD A. HATCH Vice President Deering Milliken & Co., Inc. J. W HITNEY PETERSON Executive Vice President United States Tobacco Company ADAM K. LUKE Vice President and Treasurer West Virginia Pulp and Paper Company JACOB L. REISS President, International Tailoring Company WILLIAM K. DICK HIRAM A. MATHEWS Chairman, Executive Committee Vice President National Sugar Refining Company MICHAEL A. MORRISSEY President HENRY FLETCHER The American News Company, Inc. Fletcher & Brown AUGUSTUS G. PAINE GEORGE F. GENTES Chairman of the Board New York & Pennsylvania Co. Vice President FLETCHER W . ROCKWELL President, National Lead Company WILLIAM SKINNER President William Skinner & Sons FRANCIS L. WHITMARSH President Francis H. Leggett & Company J U L Y n o iA h w e / t e r n 1 94 3 F O R T Y -E IG H T H Y E A R N U M BER 672 Oldest Financial Journal West of the Mississippi River IN T H IS ISSU E Editorials Across the Desk from the Publisher...................... C L IF F O R D DE PU Y Publisher 10 Feature Articles Dear Editor— Letters from Readers...................... Frontispage ............................................. ........... News and Views of the Banking W orld................ The South Dakota Convention........ ........ The Minnesota Convention............ ......................... New W ar Financing Plan..... ................................ The North Dakota Convention................................. Conditional Sales Contracts— Legal Department, W ar and the Farmer____ ____ _______________ R A L P H W. M O O R H E A D Associate Publisher H E N R Y H. H A Y N E S Editor 527 Seventh Street, Des Moines, Iowa Telephone 4-8163 ....... .........-......... 7 - ..................... 13 Clifford De Puy 14 ............ ............. ... 15 ..................... -....... 16 ........................ 18 .................................... 19 ............................. 20 .... O. B.Jesness 22 Insurance Selling Life Insurance to Farmers.......................... William J. Lucas 27 Bonds and Investments N EW Y O R K O FFIC E Frank P. Syms V ice President 505 Fifth A ve. Suite 1 806 Telephone MUrray H ill 2-0326 ★ ★ ★ C O N V E N T IO N S A M ER IC A N BANKERS A S S O C IA T IO N A m erican Bankers A ssocia tion , W a l d orf-A storia H otel, N ew Y ork C ity— W eek o f Septem ber 13. F in a n cia l A d vertisers A ssocia tion , E dgew ater B each H otel, C hicago— O ctob er 19-20-21. STATE A S S O C I A T I O N S Iow a, F ort D es M oin es H otel, M oin es— Septem ber 5-7. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des Governments A fter the W ar........ ............................ Bankers Go Back to School.................................. . For Outstanding Service............................................ James H. Clarke 31 ............................... 32 ............................... 34 State Banking News Minnesota News ........ .......................................... ...... Twin City News............ ...................................... Minnesota News Notes...... ................................ Brief News from Duluth_______ __ _________ South Dakota News.... ........................ ..................... . Brief News from Sioux Falls______________ North Dakota News......... .............. ........................... Brief News from Fargo.... .................. .............. Nebraska News ....... ................................................... Omaha Clearings ........... ................................... Lincoln Locals ...................................... ............... Iowa News ......................... .......................... ................ Twenty-five Year$ A go....... ............................... “ Know Your Money” Exhibit in Omaha........ ........................................ .James M. Sutherland ................... J. E. Tyler ........................................ ........... ............................ ........................................ ........................................ .................. -.................... ........................................ ........................................ ....................................... ........... - ........... ............ ........................................ .......................-......-......... 37 39 40 41 47 47 49 49 51 53 55 59 62 64 The Directors* Room A Few Short Stories to Make You Laugh............ 78 10 Across the Desk From the Publisher What 42 Production Thele al'e sonle Credit Associations Are banks w h \e11 ar,e pi . . r c i j. not troubled much Doinq in hour btates . , ° w i t h government competition in their local communities but there are many others who have to face it each day. It is hard for us to understand why it is that the government is constantly competing with banks who in turn are doing their utmost to help finance the war through the purchase of War Bonds for their own portfolios and through assist ing in the sale of them to their local depositors. Iowa 1. Loans to Members.................. ....... $7,971,730 2. Salaries and Travel...................... 155,761 3. Total Income ................... -..... -...... 392,526 4. Net Earnings................................. 87,749 Just to show what 42 Production Credit Asso ciations in the 8tli Farm Credit Administration District have been doing, and which territory includes Iowa, Nebraska, South Dakota and Wyoming, Frank Warner, Secretary of the Iowa Bankers Association, and his “ Committee on Gov ernment Competing Agencies” have made a most exhaustive survey on PCA competition. In order to give you briefly what these govern ment competing agencies are doing in this area, "The Banker Is in a Bankers may feel that Preferred Position" witb a11 the 'TOr™ s and problems w li l c h they face from day to day, that the banking business seems at times a hard and unsatisfactory line of endeavor. However, merchants, manufacturers, and in dustrialists are facing many problems which are frequently much harder and more complex to Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 19^3 we feel sure that the condensed figures below will be highly illuminating. Senator Wheery of Nebraska has introduced a bill to liquidate the RACC. Hearings on this bill are about to commence and it is hoped that it will be passed by a substantial majority. As Secretary Warner so ably points out, the $7,971,000 of PCA loans in Iowa could be ab sorbed by the 436 banks who have to meet the PCA competition if these banks would increase their loans by approximately $18,283. This should not be an impossibility when banks are loaded Nebraska South Dakota Wyoming $5,035,533 $4,264,976 $1,560,788 106,896 87,831 27,635 298,644 249,570 91,367 75,375 68,110 31,143 with surplus funds to lend and, furthermore, banks can handle this volume with less red tape and at less cost to the borrowers than they are now paying the PCA. We can see no reason for the continuation of government financing which was created for emergency purposes, but which still continues long after the particular emergency has passed. Get busy with your senators and congressmen now on this important issue. solve than those faced by the banking fraternity. In presenting the brighter side of the banking picture, A. L. M. Wiggins, chairman of the Com mittee on Federal Legislation of the American Bankers Association, believes that bankers to day are ‘ ‘ In a Preferred Position” and gives his reasons by saying: “ I would like to point out to you one fact about American banking, about the banking business, that impresses me as a 11 businessman for whom banking is only one of his interests. I sometimes think that bankers have no appreciation of their relative position in our national economy. You may not agree with me, but from my observations in Washington throughout the past eight or ten years and through personal experience with many types of business throughout these years, I want to say to you that in my opinion banking has the least troubles and difficulties in this war period and that it has greater assurance of what the mor row will bring forth than any business with which I am connected. The profits may not be great, the difficulties may at times seem to be insur mountable, but compared to the problems and difficulties and threats that this war has brought on ©ur industries and our institutions of trade, the banker is in a preferred position. “ Examine the statement of your own bank and you will discover that your deposits have in creased and with that increase the Government has provided a source of income which represents additional revenue to your institutions to take care of your increased expenses. “ Compare your situation with that of the mer chants in your community. In one of my busi nesses we operate a little meat market, and we sell $5,000 worth of fresh meat a month. I would point out to you who are complaining about the troubles and difficulties and expense of ration banking, that you don’t know anything. I wish that every banker who opens his mouth about the problems and troubles of ration banking could run a meat market for thirty days. AVe not only have to count our coupons one by one and add them up and put them in the envelopes but we have to count them when the women come in to buy a pound of meat. We have had to in crease our personnel 50 per cent in order to take care of the increased cost and the increased activity required by the rationing program, and not only that, but we are operating under price ceilings and, gentlemen, don’t overlook the fact that banking is not under price ceilings. We have operated under price ceilings which have reduced the markup 6 per cent on meat; and whereas in this little department of a large store, with a $5,000 business a month, formerly we made a profit of $200 to $240 a month, today we are losing $250 to $275 every month without any opportunity to overcome that loss, and the Government has made no offer to take care of the out-of-pocket cost to us of the handling of these ration coupons. “ I say to you, when we are criticizing, com plaining, condemning, in our own field, take a look around you and talk to the merchants and the businessmen of your community, many of whom are passing out of the picture. ' ‘ 1 merely make these suggestions, gentlemen, because we are too prone to criticize everything that affects us personally and to overlook the broader picture and the greater sacrifices that others are being called upon to make. “ I would also call your attention to the char ter under which we operate, a charter which gives us certain rights and privileges in doing business within our respective territories, a type of busi ness different from the grocery store or from the filling station or the automobile business. It is one of the few kinds of business chartered by the Government and operating on a large scale in which the customer furnishes 90 to 95 per cent of the funds with which we make profits for our stockholders. The merchant puts up all his own capital, and it is only his own capital and bor rowed money with which he can make profits on his business. “ We are indeed in a fortunate business in this time of stress and strain and reorganization and losses of business generally, and so let us take a fair look at ourselves when we are prone to criti cize and condemn and let us recognize and thank God that we have as few troubles and as few dif ficulties as we have.’ ’ No one knows what future legislation may be passed by congress affecting the banking business of America, but it is our belief that no “ revolu tionary” laws are likely to be passed because the banking business today is already under the strictest supervision and regulation that it has ever been, consequently bankers should look hope fully into the future realizing that their next big job will be one of financing business and indus try for the post-war period, which we trust is not too far off. In the meantime consider the “ preferred posi tion” of the banking business today. Northwestern Banker July 1943 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis \ 12 ST A T EM EN T OF C O N D IT IO N At Close of Business June 3 0 , 1 9 4 3 Iow a'sfrien d ly B an k" " CENTRAL NATIONAL BANK AND TRUST COMPANY MEMBER FEDERAL DEPOSIT RESOURCES Cash and due from Federal Reserve and other banks_$19,814,617.27 United States Gov ernment Securi ties ___________ 21,980,660.14 O b l i g a t i o n s of United S t a t e s Governmental Agencies _____ 2,808,251.72 $44,603,529.13 Municipal Securities___________ 4,271,313.33 Market B on d s_________________ 1,103,222.87 Uoans and Discounts____________ 9,462,584.70 Customers’ Liability on Uoan Com mitments ____________________ 190,000.00 Overdrafts ____________________ 5,281.34 Stock Federal Reserve Bank_____ 52,800.00 Accrued Interest Receivable_____ 141,034.70 Bank Premises and Equipment__ 346,857.06 Total _______________________ $60,176,623.13 INSURANCE CORPORATION UIABILITIES Common Stock ___ $1,000,000.00 Preferred Stock __ 250,000.00 Surplus ----------------------------------Undivided Pi’ofits -------------------Reserve for Retirement of Pre ferred S tock _________________ Other Reserves________________ Discount C ollected_____________ Loan Commitments Outstanding. DEPOSITS D em and______ $42,929,899.57 Savings _________2,854,749.48 Public Funds __ 11,507,383.46 1,250,000.00 525.000.00 367,791.16 250.000.00 249,217.68 52,581.78 190.000. 00 57,292,032.51 Total _______________________ $60,176,623.13 United States Government and other securities carried at $9,380,309.10 are pledged to secure public and trust deposits and lor other purposes as required or permitted by law. OFFICERS WM. J. GOODWIN E. F. BUCKLEY CHAIRMAN, BOARD OF DIRECTORS PRESIDENT FRANK R. WARDEN A. T. DONHOWE VICE PRESIDENT VICE PRESIDENT J. R. CAPPS LEHMAN PLUMMER VICE PRESIDENT AND CASHIER VICE PRESIDENT FRED H. OUINER EMMETT E. JOHNS VICE PRESIDENT VICE PRESIDENT IRWIN ABRAM G. E. BARTMESS, JR. ASSISTANT CASHIER ASSISTANT CASHIER J. E. QUINER *D. R. WITHINGTON ASSISTANT CASHIER *1. L. WRIGHT TRUST OFFICER NOEL T. ROBINSON ASSISTANT TRUST OFFICER *On leave of absence serving in U. Northwestern Banker July 19k3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ASSISTANT CASHIER GEO. L. NISSLY ASSISTANT TRUST OFFICER ALBERT C. ROBERTS ASSISTANT TRUST OFFICER Arm ed Forces 13 Northwestern Banker July Í9b3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14 N e w s a n d V ie w s O F T H E B A N K IN G W O R L D By Clifford DePuy IMEON E. LELAND, chairman of S the board of directors of the Fed eral Reserve Bank of Chicago, is also chairman of the department of Eco nomics of the University of Chicago and when the board had their meeting in Des Moines recently, Mr. Leland expressed the opinion that “the law recently passed by the Iowa legisla ture requiring all banks to clear checks drawn on them at par,” was a good piece of legislation. C. S. “Hap” Young, president of the Federal Reserve Bank in Chicago, told the luncheon guests in Des Moines that the April War Loan support from Iowa was most excellent and that he knew the same support would be given to the new financing which has been announced. Incidentally, “Hap” gets up at 6 o’clock every morning and is down to the Federal Reserve Bank by 7:30 a. m., being the first one on the job. J. H. Dillard, vice president of the Federal Reserve Bank in Chicago, told us that the bank now has approxi mately $5,000,000,000 of assets and that since the first of the year they have held meetings of the Federal Reserve Bank board at Milwaukee, Detroit, Minneapolis, and just recently in Des Moines, the thought being to get in closer contact with the business men and bankers in various areas through out the Seventh Federal Reserve Dis trict. Ralph E. Flanders, president of the Jones and Lamson Machine Company of Springfield, Vermont, and a mem ber of the board of directors of the Federal Reserve Bank of Boston, spoke to the luncheon meeting and among other things said, “Our postwar prob lem is discovering the factors which stimulate private initiative, employ ment and production. As those fac tors are discovered and applied, the banking structure both will be re lieved gradually of its burden of gov ernment financing and be presented with opportunities for business loans and investments. “Tax policy, of course, is one of the major elements in a sound long-time policy. We must resign ourselves to heavy taxation if we are to keep gov ernment indebtedness under control. It is not so much, however, the amount Federal Reserve Meeting in Des Moines as the kind and distribution of taxes which have been at fault. “We still must depend largely upon the income tax. But its incidence up on business must be decreased.” We have received a very interesting folder entitled “A Grand Place to Work,” which was prepared by the personnel department of the Bankers Trust Company, 16 Wall Street, New York, for the purpose of having some thing simple and effective to leave with vocational advisers at the various high schools in New York City and adjacent territory, so that these ad visers in turn could distribute copies among young women about to grad uate. The responses so far have been ex ceedingly favorable to this story about the Bankers Trust Company. The opening paragraphs of the fold er tell “Why You’d Enjoy Working in This Bank,” and go on to say, “These days you can take your pick of a good many different kinds of work. You know that and so do we. But we think you would enjoy work ing in Bankers Trust Company . . . and here are the reasons why. “Please weigh these reasons care fully, for it is an important decision you are about to make. Discuss it with your parents and with your voca tional adviser at school. Then come in to Bankers Trust Company and talk it over. Read on and you will see how simple and pleasant we have tried to make it for you.” Following this, six reasons are giv en telling of the advantages in being associated with Bankers Trust Com pany. We think this is very timely and if you are interested in receiving a copy, we are sure Bankers Trust Company will be glad to send you one. James F. Adams, vice president and cashier of the Community Savings Bank of Edgewood, Iowa, didn’t send us the following “Tribute to the New Deal” but it did appear in the Edgewood News and we think that the “tribute” is a masterpiece, and here it is: “ Never before have so many done so little for so much.” One of our banker friends writes us that the new classification in the army is now “5-F” which means a single man with children. Officers and directors of the Federal Eeserve Bank, Chicago, this year are holding meetings in various sections of the Seventh District, and last month Des Moines was honored with one of the sessions. In the picture above, taken at the Des Moines meeting, from left to right, are W. W. Waymack, deputy chair man of the board; C. S. Young, president; Simeon E. Leland, board chairman; H. P. Preston, first vice president; and Frank D. Williams, Class A director from Iowa City. Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis One heading of a news item in the South Dakota Section of the June issue of the N orthwestern B anker was: “ Quits Drugs to Become Banker.” We are not sure whether it is much more (Turn to page 56, please) 15 The South DükOtU Convention T. N. Hayter, Sioux Falls, Elected President the usual custom of advancing the former vice presi dent to president, the South Da kota Bankers Association elected T. N. Hayter, vice president of the First National Bank and Trust Company, Sioux Falls, as chief executive of its organization at the closing session of its convention held last month in Mitchell. Second in command will be H. R. Kibbee, Jr., vice president of the Commercial Trust and Savings Bank, Mitchell, who was named to the office of vice president of the asso ciation. Mildred E. Starring continues as acting secretary, carrying on the duties of her husband, George M. Starring, who is in the service. It was recommended that these officers hold office until the next regular conven tion of the association, the stipulation F o l l o w in g being made in view of the fact that war restrictions might prevent hold ing an annual meeting next year at the usual time. Aberdeen was selected for the 1944 convention city, when, as, and if a convention is held. Ralph M. Watson, president of the Northwest Security National Bank, Sioux Falls, as state vice president for the American Bankers Association, presided over the ABA election ses sion. Mr. Watson reported that 87.5 per cent of all South Dakota banks are now members of the American Bank ers Association. In the ABA election, John M. Thompson, vice president and cashier of the Bank of Centerville, was named to the executive council. H. N. Thomson, vice president of the Farm ers and Merchants State Bank, Presho, becomes a member of the ABA nom AT THE SOUTH DAKOTA CONVENTION— Reading from left to right, upper left— T. N. Hayter, new Association presi dent, vice president First National Bank, Sioux Falls; Mildred I. Starring, acting secretary of the Association; and H. R>. Kibbee, Jr., new vice president, vice president Commercial Trust & Savings Bank, Mitchell. Upper right— Julius Bertsch, cashier Fulton State Bank; William C. Rempfer, cashier First National Bank, Parkston; A. T. Hagen, president First State Bank, Claremont; and C. R. McCain, assistant cashier First National Bank, Spearlish. Lower left—William C. inating committee, with William Rempfer, cashier of the First National Bank, Parkston, as alternate. South Dakota vice presidents of the several divisions were elected as follows: national bank, A. E. Dahl, president Rapid City National Bank; savings bank, William C. Duffy, vice president Union Savings Bank, Sioux Falls; state bank, F. F. Phillippi, cashier Dakota State Bank, Milbank; and trust divi sion, R. A. Pankow, trust officer First National Bank and Trust Company, Sioux Falls. Pierce McDowell, vice president of the Northwest Security National, Sioux Falls, acted as secre tary for the ABA meeting. Harold Thomson, vice president of the Farmers and Merchants State Bank, Presho, president of the South (Turn to page 44, please) Rempfer, Mildred I. Starring, L. L. Ljilibridge, president Burke State Bank; Lois J. Halversen, Association office, Huron; R. M. Engle, cashier Minnehaha County Bank, Valley Springs; K. L. Szymanski, cashier Farmers & Merchants Bank, Scotland; George Behl, president Farmers & Merchants State Bank, Scotland; and L. Christensen, president Minne haha County Bank, Valley Springs. Lower right—C. J. Poshusta, vice president and cashier Underwood State Bank, New Underwood; V. B. Klikeman, cashier Parker State Bank; and A. C. Lemme, cashier Farmers State Bank, Lyons. Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16 The Minnesota Convention H. R. Kurth, Hutchinson, Named President at Annual Meeting in Minneapolis M E M B E R S of the Minnesota Bankers Association, at their fifty-fourth annual convention, held last month in Minneapolis, elected H. R. Kurth, vice president of the Citizens Bank, Hutchinson, as presi dent of their association, advancing him from the office of vice president which he held last year. The new vice president of the association is Wilbur F. McClean, vice president of the Min nesota National Bank, Duluth, with A. P. Lechtman, cashier of the Farmers State Bank, Osseo, elected treasurer. William Duncan, Jr., Minneapolis, will, of course, continue as secretary. Aside from the usual get-together meeting the evening before the one convention day, and the annual dinner, the Minnesota meeting this year was of a strictly business nature. Registra tion exceeded expectations with more than 1,100 in attendance. Entertain ment at the stag party consisted large ly of war movies, followed by a gener ous bite to eat. Jack Maloney, assist ant cashier of the First National Bank, Minneapolis, and chairman of the local clearing house committee, in charge of convention arrangements and details, with the help of his committee did a grand job of showing everyone a good time and making them feel at home. Commenting on the many activities of the Minnesota Bankers Association during his year in office, Larry Olson, vice president of the Midland National Bank of Minneapolis and president of the association, said in part: “We are living in an inflated eco nomic period which calls for close supervision of our earning assets rep resented by loans and investments. Many banks are operating on a re duced income and I think are recon ciled to the fact that they will not en joy the profits to which they have been accustomed. In my judgment, the manner in which we conduct banking today will determine the future for banking in the years to come when the war is over and we again live in a peace economy. In the meantime, exercising our knowledge of good and reasonable extension of credit, for which there is no substitute, we must aggressively search out good loans, serve the interest of our communities and yet maintain the principles of sound banking. I am sure all of this is being intelligently doné by the bank ers of Minnesota, and when we are functioning normally again, we will have preserved the Chartered system of banking which we know today and which is so important to us and to the people of this nation. “Many of our sons and associates, H. K.. Kurth (left), president of the Citizens Bank, Hutchinson, and new presi dent of the Minnesota Bankers Association; L. O. Olson, vice president Midland National Bank, Minneapolis, immediate past president of the Association; and W. F. McClean, vice president Minnesota National Bank, Duluth, and new vice president of the Minnesota Association. Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and others near to us, have answered the call of our country and are serving in the armed forces in various capaci ties and on many fronts. Some have already paid the supreme sacrifice— many others will give their lives be fore the war is over. To them we pay tribute and honor—they are making the REAL sacrifice. “What we may do is insignificant in comparison. May our actions reflect our loyalty to all of our fighting men and women; may we protect and vigor ously guard all that they have left in our care, so that their efforts for hu manity shall not have been in vain, and that upon their return they may be proud and happy to again take their place among us. May it be the will of Providence that this war may soon end, and Victory be ours, to be used wisely and justly in bringing lasting peace to all the world.” We thoroughly agree with Dr. Her bert Heaton, professor of economic his tory at the University of Minnesota, one of the convention speakers, when he said that instead of the “four free doms” we hear so much about—free dom of worship, speech, and from want and fear—there is a fifth one, namely, freedom of enterprise. We can retain the original four, but if we lose freedom of enterprise we have lost the thing America has always stood for and the thing which has made this country mighty. New members of the Minnesota Association executive council, elected for a three-year term, were W . A. Put nam, vice president, First & American National, Duluth; S. J. Schafer, cash ier, Farmers State Bank, Waubun, and George E. Buscher, executive vice president of the Alexandria State Bank. L. O. Olson, immediate past president, also becomes a council mem ber for one year. At their annual meeting, held during the convention sessions, ABA mem bers in Minnesota elected L. O. Olson, vice president of the Midland National, Minneapolis, as a member of the ABA executive council; B. M. Peyton, presi dent, Minnesota National Bank, Du luth, to the ABA nominating commit tee, and named O. G. Jones, president, Goodhue County National Bank, Red Wing, as alternate. Those ABA mem bers elected vice presidents of the sev eral divisions were: national bank, 17 A. A. Habedank, president, Ada Na tional Bank; savings bank, George G. Cowie, vice president, Farmers & Me chanics Savings, Minneapolis; state bank, B. W . Lloyd, cashier, Citizens State Bank, Fulda, and trust division, Paul Reyerson, vice president and trust officer, First National Bank, Min neapolis. Speaking on “ Ration Banking,” W il bur F. Lawson, chairman of the ABA ration banking committee and vice president of the First National Bank, Boston, said in part: “The envelope system has been the most disturbing factor of ration bank ing. The committee has consistently refused to ask the banks to test-check any part of the envelopes. In our con ferences with the OPA, several plans have been discussed and the commit tee feels it is possible to work out a better system than is now offered by the OPA in their plan of verification of 3 per cent of the envelopes. The ra tion banking committee wants to co operate with the OPA and does not want a single bank to withdraw from the plan; neither does the committee wish to sanction an unsound plan. The partial verification of the contents of envelopes by the banks is considered unsound. It creates a serious man power situation in many banks, but worse than that, it creates a customer relations problem for, among other things, it would be exceedingly bad business for any bank to report its good customers to the OPA—the po liceman. “ Ration banking is an essential part (Turn to page 42, please) AT THE MINNESOTA CONVENTION — Reading from left to right, 1—A. J. Veigel, St. Paul; C. B. Brombach, vice president First National Bank, Minneapo lis; and W. C. Krop, executive vice presi dent Farmers & Merchants State Bank, Stillwater. 2—F. G. Hinze, J. M. Dain Company, Minneapolis; J. H. Julig, presi dent First National Bank, Hutchinson; F. G. Rogstad, president Becker County National Bank, Detroit Lakes; and Leslie Schuldt, Schuldt Company, St. Paul. 3— G. E. Parsons, cashier Security State Bank, Pillager; W. A. Gray, vice president City National Bank, Duluth; and Robert K. Evans, vice president Security Bank & Trust Company, Owatonna. 4—Mrs. S. Ilstrup, Farmers State Bank, Darwin; Mrs. F. W. Shandorf, Dundas State Bank; Wil liam Duncan, Jr., secretary Minnesota Bankers Association; Mrs. W. E. Revier, Dundas Bank; and Mrs. A. G. Reiter, Se curity State Bank, Howard Lake. 5— J. R. Nims, executive vice president Staples State Bank; Jacob Rigg, Minnesota bank ing department, Ada; and K. O. Sattre, vice president and cashier Blue Earth State Bank. Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18 NßW W a r Financing Plan Northwestern Banker Survey Reveals What Bankers Think About the New Set-up to Sell War Savings Bonds ROTEST was voiced recently by bankers in many states because of the new plan instigated by the United States Treasury to sell Bonds and Stamps to finance the war pro gram. Secretary of the Treasury Morgenthau has junked the Victory Fund Committees which have been working through the banking system and through security houses in raising money for war purposes, and has turned the job over to the War Sav ings Staff, of which there is an or ganization in each of the 48 states. The change in set-up has already been made and while, of course, bank ers everywhere will continue to co operate to the fullest extent in helping to finance the war, the N o r t h w e st e r n B a n k e r asked a number of them in these middle western states to give their thoughts and opinion on the con solidation of the several units which will now be known as the War Fi nance Committee. Letters received in response to our request read as fol lows: P Glen T. Gibson, president, Exchange Bank, Gibson, Nebraska: “ In making this change, of course, it would relieve the Victory Fund Committees of a lot of hard work. Every good citizen of the United States has only one object in mind regardless of the work, which is winning this war. “ I don’t know what the War Savings Staff would do for Mr. Morgenthau. We all know that the Victory Fund Committees have worked very hard and in every instance have put the Bond sales over the top. It looks to me as though changing horses in the middle of a stream at this time might be very disastrous. The old saying is that ‘The proof of the pudding is in the eating.’ I believe that the Victory Fund Committees have made good and with no politics mixed into this Vic tory Fund Committee it surely must have been their loyalty to the govern ment that has prompted them to sell these Bonds, with no political aspira tions in view. “ I believe that Mr. Morgenthau will find that with this new War Savings Staff he would not have the organized banking group behind them that the Victory Fund Committee have at this time. To organize this new group will Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis take time and time is the very essence of this war. I believe it would be a great mistake to make this change.” A South Dakota banker writes: “ I have your letter in regard to the consolidation of the Victory Fund Committee and the War Savings Staff, and it appears to me that they are just taking away the punch that it takes to put over these Bond drives that come up two or three times a year. The bankers, as a whole, are always more or less working with the War Savings Staff during the full year, but they do feel free to exert a little extra effort when they are called upon to put over these big drives. And in consolidating these two organizations they may feel that they have already done all they could through the year by working with the War Savings Staff. So I be lieve it is a bad mistake in consolidat ing them.” Here is a reply from a North Dakota banker: “ In response to your recent letter with reference to the plan being spon sored to eliminate the Victory Fund Committees, will state that it is our opinion that such committees have done a splendid job in the War Bond campaigns which have been carried out. “Without a doubt in mind the pro posed change would do nothing more than establish more political ap pointees, with very little experience, which in my opinion we have too many of in this day and age.” D. E. Gallatin, cashier, State Bank, Benkelman, Nebraska: “Our reaction is this—why change from a system which has got the job done so well as it has been done? It may be there are a number of political ‘refugees’ who have so long been out of the need of work to make a living and are now needing another soft job with good salaries while they can get the banks to do the work in putting out the bonds. “We think that the past drive in our county and surrounding counties was ably and nicely handled, and quotas were easily oversubscribed, so why Jhe change?” Homer M. Boyd, cashier, First Trust & Savings Bank, Anthon, Iowa: “From the record already estab lished, we believe the Victory Fund Committees have done a grand job selling Bonds to finance the war effort, and we strongly urge the Treasury Department permit the present or ganization of such committees to con tinue to function as it has been doing.” G. H. Hernett, cashier, McIntosh County Bank, Ashley, North Dakota: “ In our county it would make very little difference, as the War Savings Staff includes all the bankers in the county anyway. I am county chair man and in the towns with banks the bankers are the chairmen for their respective towns. “ I do think, though, that in the last drive the bankers did a swell job and I can’t imagine any group of men who could have done better. In our Ninth Federal Reserve District the Twin City bankers put it over with a bang.” A banker from Nebraska writes: “ It so happens that I have been chairman of the War Savings Staff for our county and during the last Bond drive I was also asked to act as chair man in this county. I therefore used the same people who had been helping on the War Savings Staff and added a few additional. “Our county has never had a Victory Fund Committee. This is, no doubt, because our county has but five banks and is not thickly populated. “ I was not aware that the War Sav ings Staff was made up of political appointees; at least I have never been accused of being a New Dealer. Of course, appointments at the top may be political. In my case I was re quested to serve as chairman for this county and considered it my patriotic duty to do so.” H. C. Danforth, vice president and cashier, First Dakota National Bank, Yankton, South Dakota: “With the record that the Federal Reserve Banks have made with the last Bond sale and knowing that the Victory Fund Committees have really worked, it would seem a great mistake to now turn the job over to the War (Turn to page 30, please) 19 The North Dakota C orwention Large Delegation Elects H. A. Fischer, of Washburn, As President ORTH DAKOTA bankers, at the forty-first annual convention of the North Dakota Bankers Asso ciation held last month in Fargo, elect ed H. A. Fischer, cashier of the Farm ers Security Bank, Washburn, as president of the Association. Serving with him will be A. C. Idsvoog, presi dent of Grafton National Bank, as vice president; Clarke Bassett, vice presi dent of Merchants National Bank, Far go, as treasurer; and C. C. Wattam, Fargo, was re-elected secretary. There were about 200 registered for the con vention, which under present travel ing conditions was considered a very good attendance. Aside from the stag party held the evening of Friday, June 18th, at which “Officer Mulcahey” of St. Paul told North Dakota bankers where they could go, and why, the N meeting was of strictly business na ture. ABA officers of the North Dakota Bankers Association were elected as follows: Member nominating commit tee, Fred A. Irish, president, First Na tional Bank, Fargo; alternate, H. A. Fischer; State vice presidents — na tional bank, E. G. Bloedow, president, Security National Bank, Edgeley; sav ings bank, F. B. Heath, president, Da kota National Bank, Bismarck; state bank, M. G. Pederson, cashier, First State Bank, Hope; and trust, Carther Jackson, cashier, First National Bank, Grand Forks. With the schedule of dues based on resources of member banks, and with these resources at the moment at topnotch figures, it was found that the Association was in a position to collect AT THE NORTH DAKOTA CONVENTION— From left to right, 1—C. C. Wattam, secretary of the North Dakota Bank ers Association; A. G. Divet, Fargo, former attorney for the Association; and George Thorp, Fargo, present attorney for the North Dakota Bankers Association. 2— New officers of the North Dakota Bankers Association, H. A. Fischer, presi dent, cashier Farmers Security Bank, Washburn; A. C. Northwestern Banker July 19JS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis more funds in dues than was necessary to the efficient operation of the organi zation, so at the meeting in Fargo a new schedule was adopted scaling down somewhat from former figures. Provision was made to allow the ex ecutive committee to make future adjustments in dues as resources of member banks made it seem advisable. In his address as president of the North Dakota Association, J. O. Milsten, president of the First National Bank, Belfield, pointed out that the bank of today certainly is not the mon ster that many of the public seem to think. Banks are serving the public in many ways, he said, and have helped to build Democracy to the position this country now holds in world affairs. In spite of Government (Turn to page 29, please) Idsvoog, vice president, president Grafton National Bank; and Clarke Bassett, treasurer, vice president Merchants National Bank, Fargo. 3— N. I. Eoop, vice president First National Bank, Bismarck; and H. W. George, cashier Bank of Steele. 4— C. W. Clow, president Merchants & Farmers Bank, Cava lier; and F. D. McCartney, vice president First National Bank, Oakes. Conditional Sales COtittOCtS Are Subject to Same General Rules as Applicable to Mortgages M ORRELL, an Iowa banker, was the executor of an estate there. As such it became one of his duties to see that Baker received cer tain monies as a life tenant, which monies were to go to Nuttall on Bak er’s death. As an incident thereto, Nuttall, the remainderman, sought to require that the life tenant furnish him with security to protect him against possible loss of his remainder interest in the funds. Would it be possible for Nuttall to require that Baker do this? Yes. A court, in its discretion, has the right to require a life tenant of personalty, consisting of money or its equivalent, to give security for the protection of remaindermen. Hagerstown, a Nebraska banker, owned a farm in that stater He teased it to Sorenson for three years. Sub sequently, the btmker deeded the property to Gregory', who knew of the lease. Did Gregory* receive the prop erty subject to the lease? Yes. Where a landlord has leased real estate to one person and then conveys it to another the landlord cannot convey to the grantee a greater interest than the landlord himself possesses. , As an incident to procuring an automobile in Iowa, Bradley executed in favor of a finance company a prom issory note which provided that it matured November 5, 1940. Along with the note he signed a conditional sales contract calling for a November 5, 1941, maturity. Which maturity date should prevail? The 1940 maturity prevails. Instru ments executed at the same time and as a part of the same transaction will he construed together. However, where there is a conflict between the terms of a note and of a mortgage given to secure it, the former must prevail. This general rule applicable to mortgages was recently held to he applicable to conditional sales con tracts by the Iowa Supreme Court. Olsen owned two adjoining lots in a Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis These and Other Timely Legal Questions Are Answered By the LEG A L DEPARTM ENT town in Minnesota. He built a house on one of the lots and ran the under ground drain for sewage across the other lot to the main sewer. Subse quently he mortgaged the house and lot on which it stood. The mortgage was not paid when it fell due and the mortgagee foreclosed and bought in the premises at the foreclosure sale. The mortgage was silent regarding any right to use the drain crossing the second lot. Did the purchaser acquire such right? Yes. Where an owner of a lot in stalled plumbing in a dwelling house thereon and connected it with a sewer drain extending across his adjoining lot, an implied easement to use the drain passed under a mortgage sub sequently executed by the owner and the foreclosure thereof. The purchaser at the foreclosure sale became the owner of the easement as an appur tenance to the property on which the dwelling house wras situated. A bank acquired a vacant tract of land in a mortgage foreclosure pro ceeding. Certain people living near the land asserted that they had a right of way to come and go across the land and that this came to them through prescripton, or, in other words, through long continued use. It developed that the coming and go ing did not have a definite and certain line or path. Were they, nevertheless, entitled to a right of way? No. To acquire a right of way by a prescription the use must be con fined to one definite and certain line or path. Travel over a tract of land in various courses or directions for the prescriptive period is insufficient to establish a right of way over any par ticular path. Jordan sold certain merchandise on credit to Lockhart in Nebraska. Con nor guaranteed the payment of the bill. Lockhart did not pay as agreed. The statute of limitations ran as to Jor dan’s claim against Lockhart and Connor. Thereafter, Lockhart made certain payments on the indebtedness. Connor did not know of this or author ize or ratify Lockhart’s action. Did the payment by Lockhart operate to toll the running of the statute of limi tations insofar as Jordan’s claim against Connor was concerned? No. Partial payments made without authority or consent of a surety do not toll the statute of limitations as to such surety. Suppose that in the preceding ques tion Connor knew of the payments by Lockhart but did nothing to authorize or ratify them. Would such knowledge operate to toll the running of the statute as to Connor? No. Knowledge of the making of partial payments by a principal does not of itself affect the liability of a surety nor operate to toll the running of the statute of limitations as to him. An Iowa banker died leaving a will in which he made a bequest to his widow and a bequest to a friend. His assets were not sufficient to satisfy both. Should the widow’s bequest be satisfied first? Yes. Where the assets of a testator’s estate are insufficient to satisfy both a bequest to the testator’s widow and another bequest, it is presumed that the testator would have intended to prefer his widow had he known of such insufficiency. A dispute arose between a loan company and a washing machine agency in South Dakota. In the en suing litigation the matter was carried to the supreme court of that state. The decision of the supreme court did not end the litigation and further pro ceedings were had in the trial court which were subsequently appealed to (Turn to page 34, please) 21 Equipped For All BANKING Needs Member Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker July 19'i3 22 W a r and the Fûttïi6t How the War Has Come to the Farm POPULAR pastime in the early months after Pearl Harbor, es pecially on the part of “wise men from the east,” was that of telling us poor, benighted heathen of the “hin terland” that we apparently did not know there was a war going on and that our country was in it. Many of us did not accept this message too kindly because we believed we were as alert as the rest of the land. No one has the temerity to come from Washington or any other place with such a message now. The effects of war have made themselves felt in one way or another to all of us long before this. Let us take stock of what some of those effects have been. One thing which war has done is to change the agricultural scene from one of price-depressing surpluses to one of ration-producing shortages. What has produced this change? Clearly, it is not due to the failure of the farmer to produce. With the help of a favorable season, farmers produced a record out put in 1942. South Dakota bankers know what drouth can do to farm out put. Should we not give special thanks for the fact that if we had to have severe drouths they come in times when surpluses were available and not in a year like 1942 when the need for a large output was so great? I am sure all of us devoutly hope that we may escape the visitation of disastrous crop failure for the duration. The major explanation for the changed picture is found in the en larged demand. War requirements have turned considerable unemploy ment into a shortage of manpower. Wage payments and national income in terms of dollars have gone up very decidedly. The resulting effect on the demand for farm products is irrefut able proof of the importance to the farmer of full employment and produc tion in nonagricultural lines. Another source of increased demand is the need of our armed forces. Many men in service are more active and better fed than in civilian life. It is necessary to build up stockpiles in various battle areas of the world in or der that our boys may not lack food when they get there and this adds to the drain on supply. Our exports were at a low ebb dur ing the depression period before the war. Foreign purchasing power was not available. Our own restrictions A Northwestern Banker July Í9'f3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis You men know from your business contacts how farm incomes have in C h i e f of Division of creased during the war. Not only have A g r ic u ltu ra l Econom ics prices gone up, but total farm income U nive rsity of Minnesota has gone up even more because of the larger output to which the higher prices have applied. Farmers of the United States had a total cash income Address before the of about $16,000,000,000 in 1942, com pared with about $8,500,000',000 as an South Dakota Bankers Association average for 1935 to 1939. This does not mean that farmers have run out of problems. Labor and machinery shortages are especially se rious handicaps to full production. Price is another factor in a promi nent role on the agricultural stage. Farmers welcome a more favorable price situation after a period of years when returns have seemed entirely too low. There are those who profess to be spokesmen for agriculture who argue that the farmer should now be permitted to reap the full benefit of the present demand by letting prices have free rein. One popular argument is that the only way to get increased output is by using high prices as the incentive. Price normally plays a very important function as a director of farm output. But there are some limitations of which sight must not be lost. The farms of the country now are at or near capacity production and raising O. B. JE S N E S S prices generally will not expand that Warns of Inñation capacity. It would be different if ample had acted as a noose to strangle our labor and equipment were at hand. Then capacity could be increased trade. There is one factor on the supply quickly. That is not the case today. Price plays a varied role in our eco side which should not be overlooked. Demands of the war on shipping and nomic life. As has been pointed out losses resulting from undersea warfare earlier, normally price is a director of limit various imports. This is the rea production. Price also serves to dis son for the coffee shortage and is an tribute or ration supplies under nor important factor in the sugar situation. mal market conditions. Still another The commodities for which war de important function of price is that of mand has been particularly strong in distributing income. Farmers want clude dairy products, meats, eggs, fats higher prices, the worker wants high and oils, and certain fruits and vege er wages, the business man wants higher profits, because they mean high tables. Requirements have not outrun sup er incomes. The problem of placing a fair valua ply in all lines. Cotton, which pre sented a serious surplus problem prior tion on the contribution of an individ to the war, still remains in ample sup ual or group to society is a difficult ply, at least in the case of shorter one. No automatic exact registering staple cotton. This comes as a sur device is available for this purpose. prise to some who have discovered Normally, we rely heavily on the op shortages in certain lines of finished eration of forces in the market place to cotton goods. These are due to limita establish these values. Controls needed tions of processing facilities rather during war limits very decidedly the adequacy of the market for this job. than of raw cotton. By O. B. Jesness 23 C ontinental I llinois N ational B ank and T rust C ompany OF CHICA G O Statement of Condition, June 30, 1943 RESOURCES Cash and Due from Banks................................................................$ 457,840,293.57 United States Government Obligations, Direct and Fully Guaranteed....................................................... 1,424,617,208.73 Other Bonds and Securities............................................................... 76,594,117.19 Loans and Discounts............................................................................ 260,869,504.50 Stock in Federal Reserve B an k...................................................... 3,000,000.00 Customers’ Liability on Acceptances........................................... 893,692.36 Income Accrued but N ot C ollected............................................... 4,854,961.53 Banking H o u se ....................................................................................... 11,550,000.00 Real Estate Owned other than Banking H o u s e ....................... 1,360,772.02 $2,241,580,549.90 LIABILITIES D eposits........................................................................................................$2,090,709,847.98 Acceptances............................................................................................. 894,315.60 Reserve for Taxes, Interest andE xpenses................................... 7,738,756.97 Reserve for Contingencies................................................................. 17,275,529.44 Income Collected but N ot E arned................................................. 285,490.64 Common Stock....................................................................................... 50,000,000.00 Surplus........................................................................................................ 50,000,000.00 Undivided Profits................................................................................... 24,676,609.27 $2,241,580,549.90 United States Government obligations and other securities carried at $361,370,032.06 are pledged to secure public and trust deposits and for other purposes as required or permitted by law Member Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker July 19^3 24 •. . T H E . . . P H IL A D E L P H IA N A T IO N A L B A N K Organized l8 o 3 June 30, 1943 R ESO U R CE S Cash and due from Banks . . . . U. S. Government Securities. . . $ 1 9 3 ,3 6 7 ,8 0 9 .7 2 . State, County and Municipal Securities 4 5 2 ,3 0 9 ,0 7 0 .0 9 1 4 ,7 9 5 ,6 2 0 .3 2 Other S e c u ritie s..................................... 3 4 ,8 5 3 ,0 0 1 .5 1 Loans and D i s c o u n t s .......................... 7 8 ,6 7 2 ,2 4 7 .1 8 Bank B u i l d i n g s ..................................... Accrued Interest Receivable. . . 2 ,6 0 0 ,0 0 0 .0 0 . 2 ,0 9 2 ,5 0 1 .9 5 Customers Liability Account of Acceptances 2 ,2 2 6 ,0 8 9 .9 9 $ 780,916, 340.76 LIABILITIES Capital S t o c k ............................ $ 1 4 ,0 0 0 ,0 0 0 .0 0 S u r p lu s ............................................................. 2 1 ,0 0 0 ,0 0 0 .0 0 Undivided P r o f i t s ....................................... 1 3 ,4 8 2 ,1 6 1 .6 2 Reserve for C o n tin g e n c ie s ...................... 3 ,1 7 8 ,3 5 0 .1 4 Reserve for T a x e s ....................................... 2 ,9 2 8 ,0 7 2 .6 3 Dividend (Payable July 1, 19 4 3 ) . . .8 7 5 ,0 0 0 .0 0 Unearned Discount and Accrued Interest 1 5 2 ,3 1 5 .0 8 A c c e p t a n c e s .................................................. 2 ,4 7 9 ,3 3 9 .5 8 Deposits ....................................................... 7 2 2 ,8 2 1 ,1 0 1 .7 1 $ 780,916, 340.76 Ev a n R a n d o l p h , President MEMBER OF THE FEDERAL DEPO SIT INSURANCE Philadelphia, Pa. Northwestern Banker July 19'i3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C O R P O R A T IO N Winning the war ought to be the major concern today. The threat of inflation is a matter of concern to all. During the last war inflation was somewhat of a novel ex perience. Many found the intoxicat ing stimulus of rising prices a very pleasant sensation. They were not aware of the terrible headache of de flation which was to follow. That headache was still a fresh memory when this war broke out and there is strong sentiment in favor of holding inflation in check. Unfortunately, there is still lack of realism in regard to what is necessary to avoid inflation. Why we are threatened with infla tion during a major war is not hard to see. Meeting war requirements in creases activity and employment and thereby adds to income in terms of dollars. Production is shifted exten sively from civilian to war goods. The dollar income rises at the very time the supply of goods and services avail able to civilians goes down. Let na ture take its course and the result is runaway prices. To avoid such a con sequence, price control and rationing are instituted. Higher taxes and sale of War Bonds are necessary to absorb the excess spending power for which goods are not now available. What is needed is for each one of us to personalize his responsibility for inflation control. If inflation gets out of hand we may expect to have to go through the inflation wringer. Infla tion brings distress in its wake. Infla tion is not selective. It drives up farm costs as well as farm prices. The farm er knows from experience that when the bubble breaks, his prices fall faster and farther than his costs. That spells disaster for the farmer, the country banker and many others. This is why everyone should give his whole-hearted support to make price control and rationing work ef fectively. This is why everyone should put as large a share as possible of his current income into government bonds. You bankers appreciate the inflation ary dangers of adding to the already excessive spending power by having the government rely on loans from commercial banks. Purchase of bonds from current incomes reduces this danger and also helps by taking spend ing power out of the civilian market where supplies are short. Taxes are notoriously unpopular but the welfare of the country and the curbing of in flation demand that taxes during this period be raised to the limit. There is still a certain lack of real ism in regard to the sacrifices which war involves. The sacrifices made by the men in the armed forces and their families are understood. People also 25 THE EXECUTIVE WHO K r K n ow s th a t “ 10% f o r W ar B onds isn ’ t enough these d a ys” Workers’ Living Costs going up . . . and Income and Victory Tax now deducted at source for thousands o f workers . . . Check! Y ou ’re perfectly right . . . but all these burdens are more than balanced by much higher .FAMILY INCOMES for most of your wcrkers!' Millions o f new workers have entered, the picture. Millions o f women who never worked before. Millions o f others who never began to earn what they are getting today! A 10% Pay-Roll Allotment for War Bonds from the wages o f the family bread-winner is one thing— a 10% Pay- Roll Allotment from each of several, workers in the same family is quite another matter! Why, in many such cases, it could well be jacked up to 30%— 50% or even more o f the family’s new money! That’s why the Treasury Department now urges you to revise your War Bond thinking— and your War Bond selling— on the basis o f family incomes. The current This sp ace is a contribution to NORTHWESTERN BANKER ★ ★ ★ ★ ★ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ★ ★ ★ For details get in touch with your local War Savings Staff which will supply you with all necessary material for the proper presentation o f the new plan. Last year’s bonds got us started— this year s bonds are to win! So let’s all raise our sights, and get going. If we all pull together, we’ll put it over with a bang! y o u ’ve d o ne y o u r bit A m erica's all-ou t w a r effort by ★ War Bond campaign is built around the family unit— and labor-management sales programs should be revised accordingly. ★ . . . now do y o u r best! ★ Northwestern Banker July 19J3 26 90 YEARS AGO . , . in 1853, back in the days of the horse car . . . this bank was organized to help meet the growing financial needs of thriving young Milwaukee (then a seven-year-old city of 20,000 souls). TODAY metropolitan Milwaukee is one of America's major war produc tion areas; and all the facilities of this 90-year-old bank . . . Wisconsin's largest . . . are pledged to one end: To help speed the victory of Freedom's forces! The First W isco n sin National Bank ranks 31st in size am ong the 15,000 banks in the U. S. O v er 85 per cent of the hundreds of banks in W isco n sin are First W isco n sin correspondents. B AN K S AND BANKERS D IV ISIO N GEORGE T. CAMPBELL • • - Vice-President RICHARD J. LAWLESS, Assistant Vice-President DONALD A. HARPER - Assistant Vice-President FIRST WISCONSIN NATIONAL BANK oi MILWAUKEE Established 1853 MEMBER OF THE FEDERAL DEPOSIT INSURANCE CORPORATION Northwestern Banker July 19JS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis recognize that we cannot have busi ness as usual. But we apparently have difficulty in getting rid of the delusion that war creates prosperity. War adds to the national income in terms of dollars, therefore we think it means prosperity, and become con cerned about making sure we get our share. War does not create prosperity. It is, instead, a destructive, costly ac tivity which demands sacrifices of all. Inflation provides no escape from the sacrifices of war. Instead, it intensi fies them. Instead of seeking our share in the imagined gains, we ought to be accepting our share of the costs. The monetary gains are illusory; the costs are real. Attention already has been called to how war activity has demonstrated the importance to farmers of full employ ment and activity in nonagricultural lines. What the domestic market for farm products will be like will depend upon whether we have active business or stagnation. The shift over from war to civilian production is going to be far from easy. Plants will have to be changed and some will be closed because of their unsuitability for peace time production. Many workers will have to be shifted to new jobs. Re turned soldiers will need to be located. These involve real problems. On the other side, inability to produce civilian goods in full is building up unfilled demands for housing, automobiles and a host of other durable goods. There will be a large accumulation of savings seeking goods. In fact, the problem in the immediate post-war years is going to be one of maintaining effective in flation controls until output catches up with demand. There is considerable reason for expecting fairly active busi ness for some time after the war. What happens in the longer run de pends on how well we function. There will be no lack of wants. The problem is one of organizing our affairs so that full use of resources for the satisfac tion of those wants may be realized. Like winning the war, this is a job which calls for the full cooperation of everyone. What about the idea that world needs are going to produce a strong demand for American farm products after the war? Undoubtedly, dire want will continue in some war-torn coun tries after the end of the war. The United States will have an important stake in restoring order out of chaos. Food will be an important aid to this end. This country, no doubt, will con tinue to share its food supplies in the early months after war. Supplies from Canada, Australia, the Argentine and other surplus areas also will be drawn upon for this purpose. (Turn to page 33, please) Selling Life Insurance to Farmers Treat Him As a Business Man AVING spent some thirty years in selling life insurance to farmers, I have seen the market among them change and develop, in direct relation to change and development of farming. Thirty years ago farming was con ducted in a more or less haphazard manner. Today it is a highly devel oped industry and probably at no time has the farmer held so important a place in the public life of our Nation as he does today. They say Food Will Win the Peace. Therefore, if that be true, the farmer’s place in the scheme of things is very high. If consideration is given to the in vestment in the average farm and its equipment, livestock, feed for the live stock, and the farm buildings neces sary to the successful operation of the farm, we must come to the realization that the farmer is every bit as big a business man as his city neighbor and, in most cases, he has a larger invest ment. Now since this is true, he has earned and is entitled to the same considera tion and respect as is his city neighbor. We have been told that it takes careful planning to sell insurance, and this is no less true in rural areas than it is in urban areas. In the past, the farmer was a good-natured outdoor fellow who would allow us to waste his time. To day he cannot do that. He has a big job on his hands and manpower is very scarce. The salesman who goes onto a farm, and doesn’t very soon state his business, won’t have much opportunity of selling the farmer. The farmer has gotten a lot smarter in the last ten or fifteen years and, in most cases, he wants his time conserved. He wants the salesman who comes to his farm to state his business. Therefore, it is im portant to come to the point and make a presentation. I find it is important today, more H By William J. Lucas New York Life Insurance C o . Mitchell, South Dakota W IL L IA M J. L U C A S Talk the Farmer’ s Language than ever before, partly on account of the necessity of conserving gasoline and rubber, partly because of the changed thinking of the farm people, to know something about the farmer that I am calling on—always to know his name — to know somebody who knows him, to be able to point to some of my company’s policyholders in his neighborhood and, above all, to talk to him in terms that he understands and in relation to his business. As I said, come to the point quickly. One method I have found that works for me is to tell the farmer who I am, be sure to mention his name and I fre quently say, “ I don’t believe we have met before, but I have seen you before, and a friend of yours told me to see you.” I then proceed to show him that dur ing the past ten years, the average in terest earnings on government bonds has dropped from a little over 4 per cent to a little under 2 per cent. In other words, the earnings on govern ment bonds has decreased a little over 50 per cent, and yet the cost of life insurance has increased very little. I then try to bring out that at a time like the present, he should give serious consideration to the purchase of the balance of insurance that he may need, bring out what Vice President Wallace said to the effect that “Every farmer should have enough life insurance to at least make a substantial payment on his mortgage and have some left over to assist the family while they are get ting adjusted to the loss of the opera tor of the farm.” I try to compliment him on the fact that he really is a business man in the true sense of the word. I recommend that in solicitation of farmers that only words be used that are familiar to the farmer. Don’t use high-sounding life insurance terms. This is very important. If he doesn’t understand you, he isn’t going to buy. We don’t buy the things we don’t un derstand. A good sales talk to any one is the painting of a picture that will appeal to that individual and, natural ly, the pictures that appeal to the farmer are agricultural pictures and what life insurance will do in his own case. I recommend that the prospect be given an opportunity to express him self. Today the mortgage debt on farms is probably less than it has been in the last fifty years, and the debt is financed at probably the lowest rate of interest in fifty years. These things should be taken into consideration. In review, I would say, concentrate efforts to a small area because you can refer to other policyholders and friends in that area that both of you know. Be sure to know the prospect’s name and use it in your conversation. A man’s name is the sweetest sounding word in the English language, to him. Be simple in the presentation, be brief in the solicitation. When you get through, don’t waste his time. He will Scarborough ¿.C ompany First National Bank Building, Chicago Horace A . Smith, Iowa Representative Des Moines, Iowa Northwestern Banker July 19J3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28 appreciate it. He will be glad to give you information on other people in the neighborhood. As to plans of insurance — today farmers are much more easily sold on limited payment life policies. My fa vorite form for farmers is the thirty payment life. The premium isn’t much higher than ordinary, and it is a little less than twenty pay and it has the appeal of the definite date it will be come paid up, regardless of whether dividends are allowed to remain with the company or not. .•4 ^ Jit- t ... iitfllftf»In iflfciTftr Des Moines, Iowa BANKER AGENTS WANTED The oldest mutual company of its kind in America offers liberal agency contracts covering— $ A U TO IN S U R A N C E 9 TO RN A D O IN S U R A N C E 9 TO W N D W ELLIN G IN S U R A N C E 9 H A IL IN S U R A N C E on G ro w in g C r o p s Surplus to Policyholders $1,369,325.58 50 years of proven protection. W rite tor our liberal proposition to bank representatives. Heads Mutual Surety Company The State Automobile Insurance Association of Des Moines has an nounced the appointment of William N. Plymat as vice president in charge of its surety division. At the same time the board of direc tors of the Mutual Surety Company of Iowa has announced Mr. Plymat’s elec tion as president of the latter com pany. In these two positions he suc ceeds Russell F. Lundy, who has be come connected with a casualty com pany in Oklahoma. Mr. Plymat is well known in surety and legal circles in Des Moines, since he has practiced law in Des Moines for a number of years and has served as counsel for the Mutual Surety Com pany. He received his law degree from the University of Minnesota and then entered general law practice in Des Moines. He is active in Des Moines business club circles, having served on the board of directors of the Des Moines Advertising Club and he is at present secretary of the University Club of Des Moines. He has also taught for a period of two years in night school at the Drake University College of Commerce. The surety division of The State Automobile Insurance Association has developed a substantial volume of business in seven states, including Iowa, Minnesota, Nebraska, Kansas, Colorado and North and South Dakota. The Mutual Surety Company operates entirely within the state of Iowa and became affiliated with State Auto a year ago. The State Automobile Insurance As- A LL ALLIED MUTUAL policies i are NON - A SSESS ABLE In vestigate O u r A g e n c y Pro po sitio n * Full Coverage Automobile * Workmen's Compensation * Public Liability Lines Including the Pioneer Farm Liability Policy “ ALLIED Allied. Mutual Pays” MUTUAL CASUALTY COMPANY H arold S. Evans, President H ubbell Building Northwestern Banker July Í9'i3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Des Moines, Iow a W I L L I A M N. P L Y M A T H eads Surety Com pany sociation is one of the outstanding or ganizations of its kind in the United States. Total admitted assets as of December 31, 1942, were $1,783,223, with a surplus of $402,788. Arnold Named Chairman of Bond Sales O. J. Arnold, president of Northwest ern National Life Insurance Company, has been named chairman of the new Minnesota War Finance Committee, which will direct War Bond sales in the state, following the organizational pattern being established throughout the country. Appointment was made by Secretary of the Treasury Henry Morgenthau, Jr. Mr. Arnold has served as chairman of the Minnesota War Savings Com mittee since its organization two years ago. The new program is described by the Secretary as “streamlining and amplifying in order to concentrate on individuals and to sell bonds to a still greater number of people.” Responsi bility for sales to banks, insurance companies and government bond deal ers will continue to rest with the Fed eral Reserve Banks which directed the Second War Loan drive. “An excellent job has been done in Minnesota so far,” Mr. Arnold said. “ In the April drive it is no exaggera tion to say it made one of the best showings of any state in the first es sential of the program—distribution of War Bonds to a constantly growing number of people. Before the drive the state consistently ranked from 14th to 16th in the volume sale of Series E Bonds; in April it rose to 8th place among all the states. “ I am confident that all groups will 29 integrate their efforts and carry on harmoniously with each worker placed where he can be most effective. It is acutely necessary that we divert a larger share of the income dollars of all citizens out of spending channels where they compete with vital war needs and tend to drive the cost of liv ing upward. That is the big job ahead, and we will need to build and expand on the present organization to accom plish it.” Officer In Oklahoma Company Russell F. Lundy, Des Moines surety executive, has gone to Tulsa, Okla homa, to become secretary and direc tor of the National Mutual Casualty Company of Tulsa. He was president of the Mutual Surety Company of Iowa since 1936, and vice president of the surety division of the State Automo bile I n s u r a n c e Association since March, 1942. In his new connection with the Na tional Mutual Casualty Company, Mr. Lundy will be working with another former Des Moines executive, Perry D. Inhofe, who became president of the company a year ago, after many years of service with the Hawkeye Casualty Company of Des Moines. The National Mutual Casualty writes all lines of casualty business, specializ ing in workmen’s compensation, auto mobile insurance, and fidelity and surety bonds. It is licensed to do busi ness in 15 states of the west and south west. Net premiums last year were $916,000 and this year’s total will prob ably exceed a million dollars. THE N O RTH D A K O TA C O N V EN TIO N (Continued from page 19) competition in many lines, banks are doing their utmost to serve their customers, and to bring the war to a successful conclusion. North Dakota school children went 2,100 per cent over their quota of 37 jeeps to 800 jeeps, more than the total sales of war stamps for the states of Ohio and Indiana to top the sales of any state in the nation in the “Buy a Jeep” campaign conducted during April. This was the statement of F. P. Conklin, president of the Provident Life Insurance Company of Bismarck, state chairman of the federal bond sales campaign, before the North Da kota Bankers Association. William Duncan, Jr., secretary of the Minnesota Bankers Association, spoke at Fargo on “Bankers Participa tion in the Rationing Program” , urging all bankers to cooperate to the fullest extent, and assuring his listeners that many of the rough spots in the pro gram would be ironed out in the near future. John A. Graham, North Dakota state examiner from Bismarck, cited some íjhmd.,. Western Mutual Fire Insurance Company Fo n i l e V/ V/ V/ V/ V/ V/ y Insurance d oe s take the guess out of yes. A n y good banker would make a loan if the paying record of the bor rower were good and the collateral suf ficient. Many good loans have turned sour simply because of insufficient insur ance. Bankers prefer to write the insur ance on property upon which they have made a loan. Write today and ask for an explana tion of Western’s Superior Service! HOTEL V/ V/ V/ V/ out of U S Our Banker Agents in the several states in which we operate number in the hundreds for reasons that mean money in their pockets and lower cost loans. of this outstanding hotel, noted as the civic, social and travel center of the city. There's far more to enjoy but it is far from be ing expensive. y V/ It takes the Guess 9 t h a n d G r a n d , D e s M o in e s y Official A.A.A. hotel. Home of the National Aeronautic Assn. Headquarters of civic clubs including: Rotary, Kiwanis. Blue Goose, Lions, Optimists, Ad-Sell, Omaha Executives. V/ V/ V/ V/ V/ V/ V/ V/ V/ V/ V/ y Over a Third of a Century of Safety and Service with Savings Northwestern Banker Jnlij 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 30 interesting figures in comparing num ber of state banks, their capital, and deposits, beginning in 1939, and com ing up to date. There are fewer banks, a small increase in capital, but a tre mendous increase in deposits—the lat ter 44 million in 1939, and 129 million at the close of 1942. His figures were quoted to show that we were leading up to inflation, which is of course with us now in a mild form, the question being whether it can be controlled. Mr. Graham explained several of the new laws pertaining to banking passed by the North Dakota legislature this year. He warned banks to adhere strictly to service charges as suggested by the State Department, so that in the event legislation is sought to elimi- nate service charges altogether, banks of the state will present a united front and have a much better background from which to state their side of the picture. Details of the Decatur Plan, a some what simplified system of applying service charges, was explained in full by R. H. Barry, of Fargo. Numerous questions were asked Mr. Barry, all of which were capably answered, and while the plan seemed worthy of adop tion in most banks, it was conceded that there would be individual in stances where the plan would not work to its fullest advantage. Unless travel restrictions and other conditions beyond control make it im possible, the 1944 convention of the ISmtlt of America NATIONAL savings ASSOCIATION C A L I F O R N I A ' S ONLY S T A T E WI D E BANK Condensed Statement of Condition June 30 ,1943 RESOURCES Cash in Vault and in Federal Reserve B a n k .................................................. Due from B a n k s .................................................................. TOTAL CASH . . . . $ 389,032,264.76 195,091,420.19 $584,123,684.95 Securities of the United States Government and Federal A g e n c i e s ....................................................... State. County and Municipal B o n d s ............................ Other Bonds and Securities ....................................... Stock in Federal Reserve B a n k .................................. Loans and Discounts . . Accrued Interest and Accounts Receivable . . . Bank Premises, Furniture, Fixtures and Safe ............................................................. Deposit Vaults Other Real Estate O w n e d ............................................ Customers' Liability on Account of Letters of Credit, Acceptances and Endorsed B i l l s ............................ Other R e s o u r c e s ............................................................. 1,470,535,823.79 179,303,819.22 53,871,604.02 3,720,000.00 777,652,890.15 7,915,530.23 26,715,718.78 2,407,138.17 20,265,659.10 1,125,917.26 North Dakota Bankers Association will be held in Devils Rake. The conven tion had been scheduled for Devils Lake this year. The matter of selection was left to the executive committee to decide at a later date. Fargo is the home town of John V. Haas, assistant cashier of the Norhern Trust Company, Chicago. We had it from Mary Welch, of the Fargo Na tional Bank, that John is one of the greatest football players Fargo ever produced, leading the home team to many victories in his high school days. NEW W A R FIN A N C IN G PLANS (Continued from page 18) Savings Staff, which we know are purely political appointees. Believe the banks who have put so much into this without any charge whatsoever should voice a strong objection.” Guy Cook, cashier, Foster County State Bank, Carrington, North Da kota: “ Replying to your letter in regard to the heading up of the War Savings Bond drives would say that we have a banker at the head of the War Sav ings Staff in this state so that we do not have the question raised in your letter.” T he N e w Y o r k T rust Co m p a n y TOTAL RESO URCES.............................$3,127,637,785.67 C apital Funds . $45,000,000 LIABILITIES DEPOSITS: Demand . . . . . . $1,844,142,252.67 Savings and Time . . . 1,093,124,260.32 Liability for Letters of Credit and as Acceptor, Endorser or Maker on Acceptances and Foreign B i l l s .................................................................. Reserve for Interest Received in Advance . . . . Reserve for Interest, Taxes, Etc........................................ Capital: Common (4,000,000 Shares) . $ 50,000,000.00 Preferred ( 406,132 Shares)* . 8,122,640.00 Surplus ............................................ 62,000.000.00 Undivided P r o f i t s ............. 20,349,641.64 Reserve for W ar Contingencies, etc. 13,919,040.87 Other R e s e r v e s .................. 3,002,244.09 Reserve for Increase of Common C a p it a l............................. 3,877,360.00 Preferred Stock Retirement Fund . 254,753.65 TOTAL CAPITAL FUNDS $2,937,266,512.99 IOO BROADWAY 20,578,360.83 3.705.645.30 4.561.586.30 M A D IS O N A V E N U E AND 40T H STR EET TEN R O C K EFELLER PLAZA 161.525.680.25 TOTAL LIA B ILIT IE S ............................. $3,127,637,785.67 Issu ed at $50 ($20 C apital— $30 Surplus), A nnual D ividend $2. P referred to exten t of and retira b le at issu e p rice and a ccru ed dividends. * This statement includes the figures of the London, England, banking office. MAIN OFFICES IN TWO RESERVE CITIES OF CALIFORNIA SAN FRANCISCO LOS ANGELES B ranches th rou g h ou t C a liforn ia u n ited fo r strength and service Northwestern Banker July 1933 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member of the Federal Deposit Insurance Corporation 31 Governments Aftßt the W ar Don't Count Too Much on Corporate and Municipal Offerings J A M E S H. C L A R K E Following the slashing victories of May, the war news was much milder in June. The final opera tions on Attu were completed, and the softening up process on Italy and t li e surrounding islands continued. The best news— in a negative sense— came from the Rus sian front. Here— as we write this on June 28th— the Germans have failed to launch the expected offensive. With only a couple of months of good fight ing weather ahead of them in Russia— with the United Nations striking and striking hard in the Ruhr Valley— with the U-boat campaign pretty well stopped— it seems that the German forces are on the defensive. Domestic news got the headlines in the past four weeks. The three walk outs by the coal miners, plus innumer able strikes in all parts of the country, were more serious than any foreign developments. No one has yet figured out whether John L. Lewis, by signing a truce which expires October 31st, has won a victory or suffered his first defeat. The next few weeks will deter mine that, and no one should be sur prised if, under government operation, further concessions are made to the miners. These, indeed, are unusual times. With a government in Wash ington wholly sympathetic to the la borers’ point of view, we nevertheless hear of new strikes each day. Where we will drift on the home front under such a combination of circumstances is difficult to foretell. One has but to read the Washington letters—any one of them—to under stand the lack of coordination which prevails in government bureaus. That this is increasing rather than decreas ing is indicated on all sides. Fortu nately, the Armed Forces and the Army personnel in Washington are doing a good job of it—as are the American manufacturers—which may be sufficient to offset eventually the lack of efficiency in government bu reaus. In June the stock market had an up and down course but it was gen- The Month's Market Maneuvers Prepared for The Northwestern Banker By James H. Clarke A ssista n t Vice President A m e rican Natio nal Bank & Trust Co. C h ic a g o erally higher. As we write this there are still a couple of days of trading, but it is not likely that these will change the general figure. On June 7th the Dow-Jones industrial averages hit a high point of 143.08, but follow ing this the market eased downward for a couple of weeks to 138.79. In the last week of the month, however, the market recovered its losses, and as we write this on Monday morning it appears that the average will make a new high for this month. This is a market which has not re sponded to the usual influences. It is pretty well agreed that earnings of individual corporations will be smaller, and that cuts in dividends—which have been so much in evidence—will continue. Rising taxes and lower mar gins of profit seem quite certain to continue also. At the same time, how ever, there are vast sums of money seeking investment. This fact alone is a reason for such a strange phenom enon as a rally of several points in a stock on the news of a dividend cut. This is the kind of a market which will have to run its course. But it is also the kind of a market which can be expected to appear in these uncer tain times. The government bond market has continued strong. Bankers who have sat on the side lines holding idle cash for years are, in many cases, buying now. Those who have followed the policy of keeping fully invested are buying whenever their cash positions permit. Today (June 28th) the treas ury is offering the first notes we have seen in a long time. These IV2 per cent notes due September 15, 1947, answer the demands of bankers throughout the country for this type of security, and a large over-subscrip tion is expected. This, of course, will be past history when this article ap pears in print. It is expected that in September the Treasury will offer its program for tax es in the year 1944. That this plan will suggest substantial increases, both in individual brackets and corporate taxes is a foregone conclusion. These tax plans will be a part of the Treas ury’s longer term outlook to finance the war through 50 per cent raised by taxes and the other 50 per cent through the sale of Bonds. It is expected that the Treasury will ask for an increase in corporate taxes from the present 40 to 50-55 per cent. However, it is recog nized that the 55 per cent may very well be just a bargaining figure and that something around 45-50 per cent will be finally accepted. In any event, it is apparent that taxes in 1944 will present a much more serious problem to almost everyone than they do this: year. Municipal prices have continued high and new offerings are scarce. A year ago the yield on the 25 long term bonds in the Dow-Jones index was 2.43 per cent but since then it has dropped to 1.93 per cent. This is one of the best concrete indications of the rise in prices that has taken place. As long as tax exemption remains, and as long as there is such a scarcity of new municipal offerings, it is probable that prices will continue at high levels. Better grade corporate bonds, quite like municipals, are following a simi lar pattern, being both high priced and scarce. With the government com peting for practically all the bond funds in the market, there is little likelihood of a change during the war period. Many guesses are being made as to what will happen after the war. In the security underwriting field it is generally believed that the end of the war will mark the beginning of an era of corporate and municipal financ ing. There is a possibility, however, of an error in this thinking. It is known that in England the govern ment is considering definite plans to restrict such financing to the public in order that it may continue to bor row money rather freely. Under such circumstances the government would stand ready to loan money to corpora tions or to municipalities where there is a legitimate need and where it would help the general prosperity of the country. This, we assume, would Northwestern Banker July 19J3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 32 Bankers Go Back to School A.B.A. Candidate Harold V. Amberg, vice president of The First National Bank of Chicago, is the candidate of the Illinois bankers for vice president of the American Bankers Association. This action was taken at a meeting of the Council of Administration of the Illinois Bankers Association, at which time President George R. Boyles called attention to the fact that over two years ago the Chicago District of the Illinois Bank ers Association had formally presented the name of Harold V. Amberg for the office of second vice president of the American Bankers Association, which action later was endorsed at the meet ing of the A.B.A. membership in Illi nois. This continued endorsement was given Amberg in spite of his refusal to project himself as a candidate or to make any campaign for the office. The bankers in Illinois feel that he is highly qualified, that his leadership would be a broad one nationally, and that it would do much to expand the benefits of banking service to industry and agriculture, as well as to the gen eral public. Heads Missouri Bankers Pictured above are bankers from Iowa, Nebraska and Minnesota who this year attended the Graduate School of Banking at Rutgers University for the twoweeks course. In the upper picture from left to right are Don E. Crouley, Northwestern National Bank, Minneapolis; Harold C. McConnell, Federal Re serve Bank, Minneapolis; A. W. Mills, Federal Reserve Bank, Minneapolis; Alan H. Moore, First National Bank, Minneapolis; and William R. Chapman, Midland National Bank & Trust Company, Minneapolis. In the lower picture are Richard W. Trefz, Beatrice State Bank, Beatrice, Nebraska; John F. Warner, First Trust Company, Lincoln, Nebraska; and Her bert L. Ollenburg, Hancock County National Bank, Garner, Iowa. continue for a few years’ time— at least until the government market was no longer the tremendous factor it is to day. All bankers who have given se rious thought to the market for gov- ernment bonds following the war should be quite interested in following plans which our own administration may devise and develop for the post war period. Kearney Wornall, who was elected to the presidency of the Missouri Bankers Association at the war time conference held in St. Louis, last month, has been identified with the banking business for more than 26 years and is widely known among banks and other financial institu tions in the south and southwest trade territory. Mr. Wornall is vice president of the City National Bank & Trust Company of Kansas City, Missouri, having served in this capacity for the last ten years. The new president of the Missouri Bankers Association is 52 years of age, having been born in Kansas City on April 5, 1891. He was educated in the schools of Kansas City and later at tended the University of Missouri where he was awarded the degree of bachelor of law. At a regular meeting last month, the City National Bank & Trust Company S carborough ¿ C o MPANY CtHMt&ciobk. First National Bank Building, Chicago Northwestern Banker July Í9J3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Horace A . Smith, Iowa Representative Des Moines, Iowa 33 of Kansas City increased the surplus of the institution by $250,000. Surplus of the City National now stands at parity is only a rough indicator of price relationship. There is no fixed relationship a mo n g pr i ce s which should endure for all time. We live in a dynamic economy. Products, methods, techniques and markets are subject to change. The price structure needs flexibility and should not be frozen to some situation of the past. If farmers insist on government con trol of prices, they must ex"ect to ac cept government direction of produc tion as well. W A R A N D THE FARM ER (Continued from page 26) Parity prices have been the pro claimed goal of agricultural programs of the past decade. It is not at all un likely that we will continue to employ some governmental program to influ ence price. Here again is a problem which requires careful thought and sound reasoning. Parity price has a strong suggestion of justice and fair ness. It is so easy to assume that it represents an exact measure of what farmers are entitled to. At the best A KEARNEY W ORN ALL M issou ri Bankers Head S o u n d s P o p u la r SHORT TERM INVESTMENT ☆ $2,000,000, undivided profits are $624,097, and the bank is capitalized at $1,000,000. There is frequent question today with regard to the respective roles of government and of private endeavor ☆ ☆ Consolidated collateral trust debentures o f the Quarterly Dividend The 182d consecutive quarterly divi dend of The Northern Trust Company has been declared by the directors. This dividend of $4.50 was payable on July 1st to stockholders of record June 15, 1943. / Increase Surplus S. Sloan Colt, president of Bankers Trust Company, announced that the board of directors of the company voted to transfer $25,000,000 from un divided profits to the surplus account, to transfer $7,000,000 from general re serve to undivided profits, and to write down the book value of its banking premises by $2,000,000. As a result of these transfers surplus is increased to $75,000,000, making a total of $100,000,000 of capital and surplus. “We were glad to take this action,” said Mr. Colt, at the meeting of the board of directors, which is held each year on the anniversary of the birth of Henry P. Davison, founder of Bankers Trust Company, and as mark ing the progress of the bank in the for tieth year of its operation.” Federal intermediate credit banks are joint and several obligations o f these banks, established under an Act o f Congress twenty years ago. The Debentures are legal investment for trust funds, insur ance companies and savings banks in New York and other States. They are eligible to secure all fiduciary, trust and public funds, including war loan deposit accounts, under authority or control of officers of the United States. They are approved security for deposits of postal savings funds. Maturities to six months may be purchased by the Federal reserve banks and are acceptable by them as collateral for fifteen day loans to member banks. Denominations of $5,000, $10,000, $50,000, $100,000, maturing in three to twelve months, are offered periodically through recog nized dealers and dealer banks at current market rates. THE FEDERAL INTERMEDIATE CREDIT RANKS SPRINGFIELD, MASS. BALTIMORE, MD. COLUMBIA, S. C. Does There? Breathes there a man with soul so dead— Who’s never turned his head and said: “Not bad!” LOUISVILLE, KY. NEW ORLEANS, LA. ST. LOUIS, MO. ST. PAUL, MINN. HOUSTON, TEX. OMAHA, NEB. BERKELEY, CAL. WICHITA, KAN. SPOKANE, WASH. F u rth er in form ation rega rd in g the D ebentu res m ay be ob ta in ed fr o m CHARLES R. DUNN, F isc a l A g e n t 31 Nassau Street, New York N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 1943 \ 34 in the years ahead. Private enterprise clearly is faced with a challenge to operate so effectively in public interest that there will be no real question about its continuance. That challenge involves ways and means of utilizing resources to the fullest for the satis faction of the wants of mankind. The driving force needs to be one of en lightened selfishness which recognizes the importance of general welfare. Agriculture, labor, industry, business, as well as government, need states manship of the highest order in their leadership in meeting the complex problems which lie ahead. The re sponsibility for developing, selecting and supporting that leadership is shared in by all. For Outstanding Service UNITED STATES TREASURY DEPARTMENT - A y fZjZ//M////jZ/sYZ.j/r/vrrJ /yy/rZ'/v/Z'// Z/,/,<///yj. .éyyw/óssyyyZ/'M// Za///Zy/// yZJm Z ^ (Continued from page 20) the supreme court. On the second appeal was it possible to have the supreme court re-examine the issues decided by it in the first appeal? Carroll, an Iowa banker, and other members of his family became in volved in a dispute with a memorial park as to the type of markers that could be used for the grave of Carroll’s mother. The memorial park had a rule allowing only bronze markers placed flush with the sod and applied it throughout the park. Was the park within its rights in insisting that such rule be observed? Yes. Cemetery associations have the right to provide by reasonable rules of general and uniform operation for the improvement and adornment of their cemeteries and the lots therein. A rule allowing only bronze markers appropriately placed is reasonable if R a ilr o a d M u n ic ip a l A.C.ALLYNa n d COMPANY Incorporated 100 W e s t M on roe S tre e t, C h ic a g o N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M ilw a u k e e J uly 19k3 S^lc ^Asi^J-KqjZ^X; Above is a facsimile of the citation received by the N orthwestern :-- B an ker from the United States Treasury in recognition of the outstanding service rendered by this publication to the War Bond Campaign. In d u str ia l W a t e r lo o 43 V SECRETARY OF THE TREASURY P u b lic U tility N ew Y ork ^ June 9, d^^tvwz B O N D S R e p r e s e n ta t iv e s : Z/Z r/Zr/yWy/j w w / vZ/y/Z / NnríI|Uirstmt Hattkrr L E G A L Q U ESTIO N S A N D A N S W ER S No. Whatever has been decided upon by one appeal cannot be re examined in a subsequent appeal of the same action. The prior decision of the supreme court is final upon the issues coming before it in the first appeal. ///# O m ah a D e s 3 Ioin es B o ston C edar R ap id s it is applied generally to a section in a cemetery or to an entire memorial park. The supreme court of Iowa so held in a recent decision. Your Payroll Department The freezing of vital materials was no deterrent to The Todd Company, Rochester, New York, check and checkwriter manufacturers, in their desire to continue the fabrication of a payroll form-holding device which has been found indispensable to war plants. The device, known as the Form-Master, which, according to a recent survey, saves 61.6 per cent of man-hours in payroll departments, is now made entirely of wood. The new design is also said to make possible many improvements in operation. Be cause of the elimination of vital ma terials, the company is continuing to fabricate the device and to install it in war plants where its use has al ready reduced man-hours, assured more accurate posting of payroll rec ords, and alleviated the burden of pay roll work entailed by increased em ployment. The Form-Master is a form-holding device used to expedite the posting of payroll data. Through its use em ployes’ checks or cash payroll state ments, payroll summary sheets, and individual earnings records—source material from which government re ports are compiled—are posted at the same time. This procedure, involving three simultaneous postings, obviates the necessity of individual postings 35 and likewise eliminates copying er rors. Payroll departments employing the Form-Master are able to operate on reduced staffs and to release many employes to vital defense operations. To Head Chest Drive Harold P. Klein, vice president of the Iowa-Des Moines National Bank & Trust Company, has been named gen eral chairman of the 1943-44 Des Moines Community and War Chest campaign. Mr. Klein served as chairman of the executive committee of the chest and vice chairman of the 1942 community and war chest drive. In addition to various other activ ities in connection with community president of General Foods Corpora tion in 1929 and became executive vice president in 1938. Mr. Igleheart also is first vice pres ident of Grocery Manufacturers of America and a director of the Borden Company and of the Chicago and East ern Illinois Railroad. His residence is in Greenwich, Connecticut. ance manager, and Harld P. Gundersdorf, manager, tax department. At a meeting of the board of direc tors of Bankers Trust Company a divi dend of 35 cents per share was de clared on the capital stock, payable July 1, 1943, to stockholders of record at the close of business June 11, 1943. Bankers Trust, New York Visitor (at asylum): “ Do you have to keep the women inmates separated from the men?” Attendant: “ Sure. The people here ain’t as crazy as you think.” Eye Openers At the meeting of the executive com mittee of Bankers Trust Company on June 24th, two new officers were elected—Mr. George C. Bennett, insur S UPPLEMENTAR Y FINANCING for S u r p l u s C r e d i t L i n e s General Finance Corporation specializes in credit lines based on Accounts Receivable, Inventory and Machinery. Because of the capital nature of these loans they are not acceptable to many banks. Yet banks receive many such requests from worthy enterprises, and it is difficult to see such situa tions go unsatisfied, especially where firms are valued bank customers in other ways. H A R O L D P. K L E IN Named General Chairman chest work, he has served as treasurer of the Des Moines Chamber of Com merce and the Polk County Infantile Paralysis committee and as Polk coun ty chairman of the Navy Relief So ciety. Several prominent banks, unable to make such loans themselves, have brought their customers and General Finance Corporation together. As a result, the customer received the special credit he required and General Finance Corporation ob tained a valued customer on a basis that in no way conflicted with his normal banking relationship. We welcome additional opportunities to be of similar service to banks—and their customers. Chase Board Member Austin S. Igleheart, executive vice president of General Foods Corpora tion, was elected a member of the board of directors of the Chase Na tional Bank at a recent meeting of the board. Mr. Igleheart has spent his entire business career in the packaged food industry, since his graduation from the University of Wisconsin in 1912. For 14 years he was associated with the management of Igleheart Brothers, Inc., at Evansville, Indiana, until the Iglehart company joined General Foods in 1926. He was elected a vice GENERAL FINANCE C O R P O R A T I O N 62 0 0 Woodward A ve. Detroit 184 West Lake Street Chicago G FC GENERAL FINANCE CORPORATION N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 19^3 36 Directors Are Elected The annual meeting of the stockhold ers of the Root River State Bank, Chatfield, Minnesota, was held last month. H. J. Sisson, Edward J. Healy, Miss Ruth A. Haven, Miss Catharine How ard and G. A. Haven were elected di rectors for the ensuing year. After the stockholders’ meeting the directors met and the present officers were con tinued: G. A. Haven, president; Miss Catharine Howard, vice president and cashier, and Dwaine Spelhaug, assist ant cashier (on leave with the armed forces). Pioneer Banker Passes Funeral services were held at Lake Benton last month for Alfred Soderlind, 87, prominent Lincoln county pio neer and banker, who passed away at the Tyler hospital. ^ “ FRIENDLY BANK” A community leader, Mr. Soderlind had served in many positions of trust. He settled in Ash Lake township in 1886. To Council of A . I. B. S. J. Kryzsko, assistant cashier and assistant trust officer of the Winona National & Savings Bank, Winona, Minnesota, was elected to the execu tive council of the American Institute of Banking at Chicago during the or ganization’s wartime conference. Twelve members make up the execu tive council of the A.I.B., the educa tional section of the American Bank ers Association. Four are elected every year for terms of three years each. Mr. Kryzsko has served in the Wi nona A.I.B. chapter in all its official positions and on all its committees. In addition, he has served on numerous state and national committees and has been associate councilman for south ern Minnesota since 1939. EMPIRE National Bank of S A IN T PA U L Serving St. Paul and the Northwest MEMBER N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL D E P O S IT J uly 19k3 IN S U R A N C E C O R P O R A T IO N He was one of several Winonans at tending the A.I.B. meeting. Others were: J. E. Krier, chairman of the Kryzsko-for-council campaign com mittee; William P. Theurer, local chapter chairman and campaign vice chairman, and B. F. Perkins. Mr. Kryzsko was elected for a threeyear term. David L. Colby, assistant vice presi dent of the Boatmen’s National Bank of St. Louis, was elected A.I.B. presi dent. Mr. Colby, vice president of the institute for a year, succeeded David E. Simms, acting manager of the Salt Lake City branch of the Federal Re serve Bank of San Francisco. 37 C . E. Johnson Heads Empire National Bank M IN N E S O T A NEWS H. R. K U R TH President H utchinson Cashier at Windom The First National Bank, Windom, Minnesota, which has been running rather short handed since the resigna tion of B. C. Grangaard, now has a new cashier in the person of William L. Palm. Mr. Palm was in the service but was discharged from the army this spring. He is experienced in the bank ing business, having spent fifteen years in this type of work. W IL L IA M DU N CAN , Jr. Secretary Minneapolis as cashier. The latter, now on active duty as a lieutenant in the navy, is vice president and director of the bank and is on leave of absence from these two positions. Resigns Position R. S. Deeren, head teller at the Wi nona National & Savings Bank, has re signed his position to become asso ciated with the Standard Oil Company in the capacity of sales supervisor cov New Cashier at Taunton ering the Pipestone territory. His J. W. Canton has been engaged as resignation became effective June 15th. cashier of the Taunton State Bank (Minnesota), to succeed Mrs. Jessie New Assistant at Mora Jensen, who is retiring. J. T. Heaney of Burk, Iowa, has been Mr. Canton took over his duties in engaged as assistant cashier of the May. He has had 25 years of banking Kanabec State Bank, Mora, Minnesota, experience and comes highly recom and assumed his duties last month. mended. Mr. Heaney has had 20 years’ experi Bezoier Addresses Bankers R. A. Bezoier, vice president and cashier of the First National Bank at Rochester, Minnesota, was chief speak er at a meeting of the Southeastern Minnesota Clearing House Association at Preston, which includes the counties of Fillmore, Houston, Olmsted and Winona. Cashier Resigns H. L. Smith, who for the past year has served as cashier of the Pipestone National Bank, will leave in the near future for Lakefield, Minnesota, where he will become associated with the Farmers State Bank of that place. As yet no successor has been named to fill the vacancy that will exist in the Pipestone bank. Officers Named Election of H. L. Harrington as cash ier and C. A. Fockens as assistant cashier of the First National Bank, Winona, Minnesota, was announced by President G. M. Robertson following a meeting of the board of directors re cently. Mr. Harrington, who has been as sistant cashier, succeeds C. W. Britts C. E. Johnson, for seventeen years a vice president, has been elected pres ident of the Empire National Bank, St. Paul. He succeeds J. F. Ringland who resigned tö become a vice president of the Guaranty Trust Co. of New York. Wilfrid E. Rumble, a director, was elected chairman of the bank’s exec utive committee. Mr. Johnson was born in St. Paul, graduated from Central High school and became a messenger of the old Capital Bank in 1906. The bank was at Fourth and Jackson. In 1924 when the Capital was merged with the Merchants National, Mr. Johnson stayed on for a couple of years as liquidating agent of Capital assets. In 1926 the present Empire National was formed as the National Exchange ence in bank work, the past 12 years as cashier of the Burk Savings Bank. Popular Banker Dies A. C. “Augie” Larson, popular Pequot Lakes bank cashier, passed away last month at the University Hospital in Minneapolis where he had gone for treatment. Funeral services were held at the Norwegian Lutheran Church. Lafayette Cashier Retires Henry Johnson retired last month as cashier of the Citizens State Bank of Lafayette, Minnesota. He was forced to relinquish his position on account of failing health. He will be succeeded by V. F. Quist, who has been assistant cashier of this bank since 1933. Alfred E. Precht of New Ulm will succeed Mr. Quist as assistant cashier. New Assistant at Elmore Clyde E. Thomas of Deer River, Minnesota, is the new assistant cashier at the First National Bank of Elmore, assuming his new duties early in June. Mr. Thomas has many years of bank ing experience and comes highly rec ommended. C. E. J O H N S O N P resident E m pire N ational Bank Bank in St. Paul and Mr. Johnson was made vice president. The name was changed to the present one about three years later. Mr. Johnson is a former president of the Athletic club, former treasurer of the St. Paul Association, is a trustee of Osman Temple and on the board of the Salvation Army. He is a member of the Kiwanis Club. The total resources of the Empire National Bank and Trust Company are now over $17,000,000 and the officers are Alex Highland, chairman of the board; C. E. Johnson, president; C. T. Dedon, vice president and cashier; H. W . Blake, vice president and trust officer; R. H. Fayfield and John M. Kane, vice presidents; A. W . Warn, M. W . Petter, P. A. Kippels, assistant cashiers, and E. J. Jones, comptroller. N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 19J3 38 STATEMENT OF C O N D I T I O N First National Bank of Minneapolis as at J u n e 30, 1943 RESOURCES D I R E C T O R S Cash on H and and D ue from Banks U . S. G overnm ent Bonds . . . . $ 7 1 ,0 9 4 ,0 9 1 .2 5 . 1 6 3 ,2 9 3 ,3 7 0 .0 0 {D irec t and F u lly Guaranteed ) G uaranty F u n d .................................................. 5 70 ,0 00 .0 0 ( U . S. Bonds w ith Com m issioner o j B an ks) Loans and Discounts . O ther Bonds and Securities . . . . . 3 4 ,1 5 1 ,9 0 4 .4 8 . 9 ,6 2 4 ,7 7 3 .3 4 O v e r d r a f t s ................................................. . 5 ,8 2 2 .5 6 Bank B u i l d i n g s .................................................. 534,995.08 Custom ers’ Acceptance Liability . 3 36 ,4 92 .0 0 Interest Earned but not Collected 5 2 5 ,6 0 9 .5 4 O ther A s s e t s ........................................................... T otal Resources . . . . 2 6 ,9 9 0 .5 2 $ 2 8 0 ,1 6 4 ,0 4 8 .7 7 LIABILITIES Capital S t o c k ........................................ .......... $ 6 ,0 0 0 ,0 0 0 .0 0 S u r p l u s ...................................................................... 6 ,0 0 0 ,0 0 0 .0 0 U ndivided P r o f i t s .................................................. 4 ,3 9 0 ,5 8 0 .4 3 Reserve for Interest, Expenses, Taxes, Etc. 1 ,19 9 ,8 41 .3 8 Interest Collected but not Earned 5 5 ,2 9 1.28 Letters of Credit and Acceptances 3 36 ,492.00 O ther L i a b i l i t i e s .................................................. 6 9 ,6 7 2 .3 5 D e p o s i t s ...................................................................... 2 6 2 ,1 1 2 ,1 7 1 .3 3 T otal Liabilities . . . . $ 2 8 0 ,1 6 4 ,0 4 8 .7 7 Henry E. Atwood, Vice President, The B. F. Nelson Manufacturing Co. Russell H. Bennett, Mining Engineer Daniel F. Bull, President, The Cream of Wheat Corp. J. G. Bvam, Vice President E. L. Carpenter, Retired Franklin M. Crosby, Vice President, General Mills, Inc. Paul V. Eames, President, Shevlin, Carpenter & Clarke Co. John H. Hauschild, President, Chas. W. Sexton Co. Horace M. Hill, President, Janney, Semple, Hill & Co. W. L. Huff, Vice President and Treasurer, Minneapolis-Honeywell Regulator Co. C. T. Jaffray, Chairman, M., St. P. & S. Ste. M. Ry. Co. John H. MacMillan, Jr., President, Cargill, Inc. Sumner T. McKnight, President, S. T. McKnight Co. W. G. Northup, President, North Star Woolen Mills Co. S. G. Palmer, President, S. G. Palmer Co. A. F. Pillsbury, Director Pillsbury Flour Mills Co. L. E. Wakefield, President Robert W. Webb, Vice President C. C. Webber, President, Deere & Webber Co. H. R. Weesner, Chairman Board, Wabash Screen Door Co. F. B. Wells, Vice President, F. H. Peavey & Co. C. J. Winton, Jr., President Winton Lumber Co. Sheldon V. Wood, President and General Manager, Minneapolis Electric Steel Castings Co. Edgar F. Zelle, President Jefferson Transportation Co. U. S. Government obligations and other securities carried at $59,636,129.96 in theforegoing statement are deposited to secure public funds andfor other purposes required by law. Member Federal Deposit Insurance Corporation Affiliated with N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 19J3 f ir s t b a n k st o c k c o r p o r a t io n a A 39 Twin C ity News S IGURD UELAND, counsel of Fed eral Reserve Bank of Minneapolis, has been elected vice president and counsel by directors, according to a n n o u n c e m e n t by John N. Peyton, president. Mr. Ueland, who formerly carried on his work as counsel for the bank in connection with his private law prac tice, assumed full-time duties at the bank July 1st. Twin City Bond Club held its annual picnic last month at Midland Hills Golf Club—with the affair this year re stricted to a strictly Twin City party because of wartime restrictions on travel. The party was handled by a com mittee including Ray F. Weidenborner of Henderson-Weidenborner, Inc., St. Paul, chairman; Cecil Burnham, First National Bank, Minneapolis; Elmer Williams, Allison-Williams Co., Minne apolis; H. N. Tufvesson, H. M. Byllesby & Co., Minneapolis; Rollin Andrews, J. M. Dain & Co., Minneapolis; Fred Goth, Piper, Jaffray & Hopwood, St. Paul office; Clarence Finger, Milwau kee Co., St. Paul office, and Charles Loomis, First National Bank, St. Paul. Directors of Minnehaha National Bank, Minneapolis, have elected Eugene R. Locke assistant cashier of the bank. Mr. Locke entered the banking busi ness in 1928 at the First National Bank, where he spent 13 years in the transit, credit and personal loan de partments. After a year in the Minne apolis office of First Service Corpora tion, he joined the staff of Minnehaha National in January, 1942. Harold H. Wiley, veteran Minne apolis investment man, has been elect ed vice president of J. M. Dain & Com pany. Mr. Wiley was assistant execu tive secretary of the Hennepin County By James M. Sutherland Special Correspondent War Finance Committee during the April War Bond drive. He was con nected with Wells Dickey Company for 22 years prior to its dissolution several months ago. Also elected vice p r e s id e nt was Charles R. Bennett, associated with J. M. Dain since Wells Dickey closed. Lyman E. Wakefield, president of First National Bank of Minneapolis, has been appointed to the board of trustees of the Carnegie Endowment for International Peace. Officials of member banks of First Bank Stock Corporation held their annual conference in Minneapolis early in June to discuss credit and operating methods and policies under wartime conditions. The 63 affiliated banks represented at the meeting are located in Minne sota, North and South Dakota and Montana. Clive T. Jaffray, First Bank chairman of the board, presided. 29th Birthday The Grand Rapids (Minnesota) State Bank observed its 29th birthday as a financial institution in Itasca county on Tuesday, June 15th. Scanning the record of the growth of the bank dur ing the 29 years, C. C. Wilcox, its pres ident, found reason to be pleased. The bank continued at Warba until November, 1936. It was organized with a capital of $10,000. When the move to Grand Rapids was made, the footings were around $100,000. Now they total $776,000, a healthy growth in seven years. The capital has been increased to $32,500', and the capital account is $65,000. C. C. Wilcox is still the president, and Albert Erlandson of Warba is vice president. Other directors are H. J. Dockstadeer, G. L. Finnegan and R. J. Beckfelt. Change in Personnel Not many changes have taken place in the personnel of the First National Bank of Carlton, Minnesota, but the course of time makes changes neces sary in every business. For almost forty years, with the exception of four years, John F. Hynes has been presi dent of this financial institution. Re cently Mr. Hynes decided to resign his position, owing to the poor condition of his health and the desire to take things easier. Alfred H. Lee was elected president of the bank, succeeding Mr. Hynes, with Ray A. Butts retaining the posi tion of vice president and cashier, and Miss Hilda Larson as assistant cashier. Alfred W. Lee will be the bookkeeper and general utility man. W . W . Churchill, 86, Dies William Wallace Churchill, retired Rochester banker and treasurer of the grand encampment, IOOF of Minne sota for 43 years, died at his home last month after a three weeks’ illness. He was 86 years old and would have been 87 on June 25th. A Rochester banker for 47 years, he was executive vice president of the Union National Bank for 23 years until his retirement September 15, 1936. Annual G olf Tournament The Twin City Bond Traders Club is holding its annual golf tournament on Thursday, July 15th, at the Midland Hills Country Club. All Twin City dealers are invited to the event, which in past years has been one of the high spots of the year. N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 19^3 40 Members of the committee in charge of arrangements are Chuck Reiger, Jamieson & Company; By Kairies, Merrill Lynch, Pierce, Fenner & Beane; Paul Matsche, Paine, Webber, Jackson & Curtis, St. Paul; and Al Plumley, First National Bank, Min neapolis. A young lady and her aunt, return ing home from work on pay day, were relieved of their money by a stick-up man. The young lady, rushing over to a policeman, exclaimed, “ I’ve been robbed of my pay and my aunt’s pay!” “ Cut out the pig Latin and tell me what happened,” the copper ordered. Minnesota News Notes By J. E. TYLER, Special Representative SEGNER, v i ce president and director of the American State Bank of Watertown, Minnesota, died suddenly last month. He had been a director in the bank since its organization in 1916. A LOIS Edward B. Strate, 71, widely known in St. Paul banking circles, where he had been identified many years with the Merchants National Bank and subsequently with First National Bank after the merger of the two institu tions, died recently at his summer home on Lake Koronis, Minnesota. He had been retired since 1933. C. J. Katzenmeyer, formerly assist ant cashier, First National Bank, El more, has been named cashier of the Farmers State Bank of Hayward, Minnesota, supplanting H. R. Lexvold. M. J. Ellingson has again assumed duties as assistant cashier of the Farm ers State Bank of Hope, Minnesota, where he was employed from 1936 to 1941. During his absence, Mr. Elling son was connected with the Bank of America, Los Angeles. C. E. Srsen is president of the bank. B. A. Miller, assistant cashier, First National Bank, Albert Lea, Minnesota, has been commissioned lieutenant (j. g.) with the Navy Air Corps. Lt. Miller was connected with the bank six years and is the son of B. R. Miller, cashier, Citizens State Bank, Glenville, Minnesota. The State Bank of Clarks Grove, Minnesota, is redecorating the interior of their building, lining the walls and ceiling with celotex. A Logical Correspondent Valeria Bonk, employe of the North western State Bank of Appleton, Minnesota, was married recently to D. L. Buchanan. She has been con nected with the bank for three years and will continue with her work there. During the y e a r 1942 South St. Paul com m ission firms received 6,400,000 h ea d of livestock, for w hich 218 million dollars w a s paid to producers and feeders. agricultural com m odity produced in this No other territory ap proaches livestock in im portance. South St. Paul is your livestock market. Y o u can im prove the service to your custom ers through an account with us. ★ ★ ★ The Stock Yards National Bank South Saint Paul, M inn. M E M B E R F E D E R A L D E P O S IT IN SU R A N C E C O R P O R A T IO N N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 1943 At a meeting held last month at the Golf Club, Le Seuer, Minnesota, to organize a committee for Economic Development, E. B. Cosgrove, Le Seuer Canning Company, was elected chair man of the South Minnesota District, and E. C. Meierbachtol was elected community chairman. The State Bank of Le Seuer, Minne sota, has instituted new service charges which have been gracefully accepted by the public. Fifty cents is the base charge on all checking accounts, allowing one free check for each $10 of minimum balance. All checks over minimum are 4 cents each. Since instituting the new service charges, the bank has shown a decided increase in revenue. The interior of the First State Bank of New Market is being redecorated. Another wartime contribution by RECO RDAK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A Current K odak A dvertisem ent. . . appearing in leading national magazines reaching more than 1 8 ,6 0 0 ,0 0 0 readers. T )R E C I O U S w eeks in these “ M iracles o f Swift R epair” may be saved by R ecordak— w h ich you, as bankers, helped pioneer and perfect. T h ese savings are m ade p o ssib le by R ecordak’ s p h o to graphic accuracy, ph otograph ic com pleteness, photographic speed in reproduction, and photographic reduction to a fraction o f the bulk o f the original draw ings. A ll these advantages are familiar to the thousands o f banking institutions who find R ecordak P hotographic A ccoun tin g Systems invaluable today in m aintaining high levels o f econom y and efficiency in the face o f difficult wartime conditions. RECO RDAK CO RPO RATIO N 3 5 0 M AD ISO N AVEN U E, NEW Y O R K , N. Y. ( S u b s id ia r y o f E a s tm a n K o d a k C o m p a n y ) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ded by Recordak Sy: O UR NAVY "came back” after Pearl Harbor to fight again—and again. The Nation’s life depended on mira cles of repair . . . A set of blueprints for a destroyer covers a quarter of an acre, and may be filed in Washington—yet quick reference to these plans and specifi cations on the spot is essential to a workmanlike repair job. After the hell of Pearl Harbor, the Navy isn’t waiting for tons of blue prints to be shipped. Little rolls of 35-mm. microfilm can cut priceless weeks from the time required to send a battered ship back into action. Through Kodak’s M i c r o - F i l e Recordak System —the photographic method behind V -----Mail—the Navy condenses, on microfilm, the bulky original plans. These can be flown halfway around the world within hours . . . or are already on hand at distant repair bases. This is only one of many instances where Recordak is increasing the ef fectiveness of America’s war effort. "Ration b a n k i n g w a r maps Recordak was originated to duplicate, on microfilm, every check cleared through a bank—safeguarding depos itors, and simplifying banking. It was Right—This is the same Shaw. She was floated . . . re paired in San Francisco. revolutionary, but no one could have foreseen its manifold destiny. Your ration coupons have become as essential as money. They are turned in by your dealer to his bank. The larger banks —90% of them — have Recordak machines, which photo graph the record of their ration trans actions with dealers and wholesalers. O ur fig h tin g fo r c e s , in new offen sives, carry Recordak duplicates of available maps and photographs of the region. In S e l e c t i v e S e r v ic e , Recordak made error-proof copies of each of the 9,000 numbers—critical in the lives of 17,000,000 young Americans —as they were drawn. Your food rationing problems? Think of the bookkeeping job that your dealer, his bank, wholesalers, and the Govern ment must do to keep their records straight! At the hank Recordak does much of this work—tirelessly, without a chance of error. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Official U.S. Navy Photographs Above—Fantastic patterns of flame as the magazine exploded on the destroyer Shaw at Pearl Harbor. End of the Shaw? In ou r w a r industries, engineering drawings and shop orders that could occupy acres are reduced by Recordak to "capsule” size. Y o u r S ocia l S ecurity record s and your War Bond purchases are micro filmed by Recordak. T h e U .S . C ensus — going back to 1790 — is now in this condensed, time-proof form. • • • In its greatest crisis, civilization has found a way to preserve its "heart” as well as its "hard business head.” You realize this as you read the V----- Mail letter of your boy —his own writing, flown to you on a thumb nail bit of film halfway around the world . . . Eastman Kodak Company, Rochester, N. Y. ving hum an progress through Photography RECORDAK OFFICES E X E C U T I V E O FFIC E S 350 MADISON AVENUE, NEW YORK, N. Y. ATLANTA LOS ANGELES BOSTON NEW ORLEANS CHICAGO PHILADELPHIA CLEVELAND PITTSBURGH DALLAS PORTLAND, ORE. DENVER SAN FRANCISCO HOUSTON WASHINGTON, D. C. A d d itio n a l d ev elo p in g fa c ilitie s a t KANSAS CITY, MISSOURI and JACKSONVILLE, FLORIDA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41 • MINN E S O T A NEWS • P. J. Gallagher, prominent Faribault business leader and a director of the State Bank of Faribault, died suddenly at his home. Mr. Gallagher had served as director of the bank since January, 1928. to Montevideo to take over the cashier duties at the Union State Bank, re placing C. J. Lieser. Mr. Lieser has accepted the position of cashier at the Murray County State Bank of Slayton, Minnesota. E. Lowell Olson, formerly in the loan department, Marquette National Bank of Minneapolis, is now stationed Sgt. Stanford Trotter, former teller, Northwestern State Bank of Dawson, Minnesota, has recently been home on a visit. Sgt. Trotter has been in the Service for two years and was wound ed in the North African campaign. Duluth News R. PASCOE, assistant vice president of N o r t h e r n National Bank, is a new director of the Govern mental Research Bureau, Inc., Duluth tax research body. . . . Willard F. Ario, president of the Duluth chapter of the American Institute of Banking, was installed as assistant treasurer of the Duluth Junior Chamber of Commerce. . . . The Junior Chamber’s annual din- P ERCY The First N ational Bank o f Chicago Statement of Condition June 30, 1943 ASSETS Cash and Due from Banks,.............................................. $ 389,460,494.33 U n ite d States O b lig a tio n s — Direct and fully Guaranteed, L T. E. L O W E L L O L SO N U n p le d g e d ,..................................... $724,004,910.56 Pledged— To Secure Public Deposits and at Camp Butner, North Carolina. He enlisted June, 1942, and graduated from Fort Benning, Georgia, in Janu ary of this year. Lt. Olson is the son of J. G. Olson, cashier, Citizens Na tional Bank of Madelia, Minnesota. E. Grunklee, cashier of the Hard wick (Minnesota) State Bank, recently visited his son Eugene, who is in training at the U. S. Naval Training Station, Farragut, Idaho. Deposits Subject to Federal Court Order, T o Secure Trust Deposits, . . Under Trust Act of Illinois, . . 248,570,731.49 39,595,348.84 519,334.08 1,012,690,324*97 82,972,671.11 Other Bonds and Securities, Loans and Discounts, . . . . 298,964,069.29 . Real Estate (Bank Building), 4,352,992.40 Federal Reserve Bank Stock, 2,400,000.00 986,192.81 Customers’ Liability Account of Acceptances, 3,916,679.25 Interest Earned, not Collected, 329,384.68 Other A s s e t s , .............................................. $1,796,072,808.84 Robert Milbrath, formerly bookkeep er at First State Bank, Okabena, Minnesota, is now in the U. S. Marines, stationed in Utah. Cordelia Ruthenbeck has taken over his duties at the bank. L I A B I L I T I E S Capital Stock, . . . . £ S u r p l u s , ..................................... 4,800,150.09 Other Undivided Profits, 666,116.35 Discount Collected, but not Earned, Vance Weaver, assistant cashier of Buffalo National Bank, Buffalo, Minne sota, believes that P. C. A. competition is more harmful to county seat banks than to outlying banks. He says that while the percentage of loss is small, the competition is still felt. Orin Samstad, for the past two years assistant cashier at the Fergus Falls (Minnesota) National Bank, has gone 30 , 000 , 000.00 50,000,000.00 900,000.00 Dividends Declared, but Unpaid, Reserve for Taxes, etc., 4,830,558.60 Liability Account of Acceptances, 1,093,365.52 Time Deposits, Demand Deposits, . . . . $ 184,261,150. 87 . . . . . Deposits of Public Funds, 1,256,399,690. 69 263,112,594. 02 1,703,773,435.58 Liabilities other than those above stated, . . __________9,182.70 $1,796,072,808.84 N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 1943 42 •MINN E S O T A ner meeting in June was addressed by Dr. Arthur J. Upgren, economist and vice president of the Minneapolis Fed eral Reserve bank. . . . Charles O. Applehagen, a director of Western Na tional Bank, announced his retirement as general sales manager of Pickands, Mather & Company in Duluth after 41 years with the firm. . . . Wilbur F. McLean, new vice president of the Minnesota Bankers Association, is NEWS* vice president of Minnesota National Bank of Duluth, former president of the Duluth Chamber of Commerce, and is this year’s treasurer of the Minne sota Arrowhead Association. . . . Lloyd W . B. Hegg, assistant vice president of Northwestern State Bank, was re elected president of the Lakeview Golf Club in Duluth for his fourth consecu tive term. . . . Thomas G. Bell, a di rector of Pioneer National Bank in West Duluth, was re-elected vice presi dent of the Samaritan Life Association. . . . Alfred Hoel, president of Western National Bank in West Duluth, became a grandfather when a son was born to his son and daughter-in-law, Lieut, and Mrs. Ronald W. Hoel. The lieu tenant has been in the naval air serv ice for five years. . . . John Dwan, son of John C. Dwan, assistant trust officer of First and American National Bank, was graduated in June from Lake Forest Military Academy at Lake For est, Illinois. . . . J. W . Lyder, vice presi dent and trust officer of Northern National Bank, was elected vice presi dent of the Duluth Rotary Club to fill the unexpired term of the late Harold G. Glenn. Mr. Glenn was a director of Western National Bank. THE M IN N ESO TA C O N V E N T IO N (Continued from page 17) of the war effort. American banking has an opportunity to distinguish it self. The banks want to be helpful to the nation. The ration banking com mittee does not want any banks to withdraw from the ration banking plan. However, we must take a firm stand as we cannot have the police duties of the OPA imposed upon the banks. What we want is a sound plan by which the banks can go along with the government and make ration bank ing really successful in every respect.” In his speech of acceptance follow ing his election as president of the Minnesota Bankers Association, H. R. Kurtli said he knew that the effort to win the war would be the first order of business for Minnesota bankers, and that they would respond to the fullest in any demands made upon them. Every branch of the association, he said, must cooperate to that end. Larry Olson, outgoing president, was pre sented with a beautiful engraved wrist watch as a token of his many accomplishments during his year in office. WASHINGTON, JEFFERSON, ROOSE VELT, LINCOLN— Each, with a back ground of farming or ranching, gave inspired service to the nation. Ameri can farmers have inherited the spirit, as well as the ideals, of these national heroes . . . and today, VICTORY is the great har vest that lies ahead. It has been Minneapolis-Moline's privilege to work arm in arm with American farmers, in peace and war. Foresightedly, in 1938, MM originated the "JEEP." Pictured here, against the majesty of Mt. Rushmore's im perishable monument, is the largest MM "JEEP" rolling an anti-aircraft gun up the mountain. Again, MM machinery, con verted to military needs, holds its place among the great defenders of democracy. By every means at its command, MM is urging farmers to keep their machinery in good repair . . . to return every bit of scrap to the steel mills . . . to buy War Bonds and Stamps. When Victory is in sight, we can turn again to full-scale output of machinery to produce food and fibre, etc. For the pres ent we are building all farm machinery al lowed under government limitation orders and Quality products for our armed forces. Minneapolis-Moline Power I mplement C ompany, Minneapolis , minn., u. s . a. N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis < A. G. Sant, president of the First Na tional Bank of Sioux City, used to play tackle on the old First National of Minneapolis football team. The late Paul Leeman also played on this team. There were three banks in Minne apolis and three in St. Paul which had football teams and the annual playoff game, to see who was the season’s win ner, took place at Thanksgiving time. All of this happened about 1907. Charles M. Nelson, vice president and cashier of the Northern Trust J uly 19J3 X 43 .. . there are fighting bankers in the Northerly Midwest sector S h e l l s , guns and ships— They are not ignoring such op tanks, planes and bombs, fight portunities as they may have to ing men at the front, draftees in aid in keeping up the tremen training camps, the workers fill dous tempo of other industries ing the factories— taxpayers and in their co m m u n itie s— those air-raid wardens— all depend on which are turning out products one thing which is basic to Vic for war use, and for the essential tory— FOOD. needs of civilians. The Northerly Midwest terri The fighting banker may muse tory produces what it takes to at times that his role is too re wage war— the harvests of the mote from the battle fronts— grain fields, the meat, the milk, that it lacks the dramatic quali the butter, and the cheese— the ty of other war tasks. He will do staples of the nation’s nourish well to put such thoughts aside and redouble his “ fighting in his ment. own backyard” — the place he is The fighting bankers in this district are missing no oppor best equipped to make his maxi m um contribution to the war. tunities to make food produc If he is doing his utm ost in war ing bank time banking he is a substantial funds are at work on farms, in producer of our basic weapon— creameries, in processing plants. FOOD. loans — to see that The First National Bank Saint Paul M innesota’ s Oldest Banking Organization Affiliated with First Bank Stock Corporation Member Federal Deposit Insurance Corporation N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J u ly 19J3 44 • MINN E S O T A Company, when he came to Minne apolis to attend the Minnesota Bank ers Convention, rode about half way with the engineer on the Chicago Northwestern train. Whether this will give Charley more experience for “en gineering” some more good business deals for the Northern Trust Company remains to be seen. H. R. Kurth, the new president of the Minnesota Bankers Association, and who so successfully conducts the Citizens Bank at Hutchinson, Minne- WE MAN WNC& PAID TO KEEP YOU W Ett TjX)R its current national advertise■*" ment NWNL has borrowed the adage that the Chinese pay their doctor only so long as he keeps them well. Whether legendary or not, this shrewdly devised relationship serves to illustrate the prin ciple that NWNL agents under the Ar nold System are paid, not primarily for new insurance they sell, bu t f o r k e e p in g th e ir c lie n ts ’ in s u r a n c e p r o g r a m s in good health. The purpose of the Arnold System, as announced in 1939, is "to better reward better service” . Just how well it is accomplishing this is shown by the fact that over the four year period 1938-42 the a vera g e a n n u a l in c o m e of Arnold System agents increased 75 per cent. That its effect is to encourage a higher quality, more efficient agency operation is attested in many ways, not the least of which is the fact that average monthly production of new agents contracted during 1942 was more than tw ic e a s la rg e as that of agents placed under contract in 1938. Such a soundly conceived system of compensation, geared to public demand and to current needs of the business and harnessed with modern selection and training programs, helps to explain NWNL’s vigorous, healthy growth, the result of a steadily growing body of satisfied policholders. Northwestern National L ife INSURANCE COM PANY O . J. A r n o ld , M in n e a p o lis , P r e s id e n t M in n e s o ta N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis NEWS sota, is a great golfer and, in fact, is known as “one-putt Helmuth.” It is understood that sometimes he makes more money on the golf course than in the bank, and he has a Ruml Plan all his own by which he settles all bets after each hole. At the Minnesota convention he was presented with a “cash and carry” box so that he could make change after the play is com pleted on each green. THE SO U TH D A K O T A C O N V E N T IO N (Continued from page 15) Dakota Association, in his address made the following statement: “The Department of Agriculture now makes the majority of agricultural loans. It has nineteen different agen cies functioning in the loaning field today. “ Country bankers who are best able to handle agricultural credits are spending their time selling govern ment bonds to the public, investing huge surplus deposits in government bonds, and taking care of the ration banking needs of the community while inexperienced personnel of the federal agencies waste taxpayers’ money and manpower in competing with each other as well as with the banks in seeking to control all available agri cultural loans. While we have been fighting an unhill battle against unfair federal competition, we may find some compensation in the knowledge that A cciden t Insurance P aying $5,000 these same government agencies are riding for a terrific fall. We are ex periencing a dangerously inflationary period with respect to farm chattels and conservative loans make up only a small percentage of present farm chat tel prices. The federal government has ignored the basic principles of credit in making loans and when the day of reckoning comes, an angry elec torate and Congress will do away with the Farm Credit Administration and its contemporaries.” An excellent discussion on ration banking, one of those fundamental, grass-roots kind that everyone could understand, was conducted by William Duncan, Jr., secretary of the Minne sota Bankers Association. The speaker said the present reimbursement sched ule would apply for six months while a survey is being made to obtain some actual cost figures. It is not intended that any bank shall profit from ration banking activities, but neither is it intended that any bank shall operate this activity at any great loss. Mr. Duncan feels that soon most of the cost problems will be ironed out, with the new schedule coming out some time this month. Rest assured, he said, that the “bugs” will be eliminated as quickly as possible, but should some banks never find a schedule that will fit perfectly, it is still their patriotic duty to cooperate to the full. Banks will do their best to be accurate in handling the coupons, but are to as sume no responsibility as to coupons collected nor to their classification. Mr. Duncan warned banks in small communities to go easy on ordering Principal Sum with $25.00 W e e k ly Benefits Up to Tw o Y ea rs Costs o n ly $2.00 Paid Up in Full to the 15th of D ecem ber, 1943. J a m ie s o n This policy offered b y a successful & A ssociation with 38 y ears of Suc cessful Service. Hospital Reim bursem ent an d Sick C o m p a n y Members n ess Policies a lso at the S a m e Low N ew York Stock E xchange Cost. and Other Principal Exchanges W rite for A pplication a n d Litera ture. Minnesota Commercial Men’s Association 2550 Pillsbury Ave. Minneapolis, Minn. J uly 19k3 • ★ STOCKS BONDS COMMODITIES MINNEAPOLIS ST. PAUL DULUTH FARGO GRAND FORKS SIOUX FALLS PRIVATE WIRES 45 No Matter Which Way It Blows Credit restrictions, rationing, price ceilings, a whole economic structure in the balance “ Nothing is so certain as change.” The N o r t h w e s t e r n Corre spondent Banking Department is keeping abreast daily of the m o m e n to u s ch an ges ta k in g place. W e are ready to cooperate with you in an informative and helpful way. USE "NORTHWESTERN" SERVICES Department of Banks and Bankers W m. N. J o h n so V ice P resident n F. W . C onrad A sst. V . Pres. D. E. C rouley A sst. Cashier L. P. G is v o l d A sst. Cashier NORTHWESTERN NATIONAL BANK OF MINNEAPOLIS Marquette Avenue: 6th to 7th Street N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 19^3 46 •MINN ESOT A NEWS disunity, the American Bankers Asso ciation through its Washington office has been able to keep a fairly firm hand on its objectives in steering banking legislation into more or less proper or at least harmless channels, and is doing a good job for its mem bers. The speaker suggested keeping an eye on all the talk about unity of banking which advocates one banking system, doing away with the state and national set-up, because this can lead only to all-out government control. Learn more, too, he said, about social security, because it is coming on a supplies incident to ration banking, because they will find they will use far less than they at first thought. The situation among the many gov ernment agencies in Washington is completely confused and befuddled, ac cording to D. J. Needham, general counsel for the American Bankers As sociation, a speaker at the South Da kota Convention. Mr. Needham de plored the condition existing, sug gesting that one solution might be a coordinator to bring organized chaos out of regimented confusion. In spite of all these obstacles of government Our location, in the great Sioux City C. L. FR ED RICKSEN President stock y ard s, en a b le s us to h an dle your live M. A. W IL S O N V ice President stock, grain an d h a y item s, prom ptly and intelligently. W . C. SCHENK Cashier O ur transit departm ent is a lso g eared to render com plete service on all Sioux City items. H. C. LIN D U SK I Assistant Cashier C. L. ADAM S Assistant Cashier For alm ost a half century, we have J. S. H A V E R Assistant Cashier m a d e a sp ecialty of correspondent service JAMES L. SM ITH Auditor and w e ca n help y o u , too, on all your items. ★ ★ ★ LIVE STOCK N a t i o o f s t o n a l i / x c m B r r , a Member Federal Deposit Insurance Corporation N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 1943 n to w a BanJc a i tfte much larger and broader scale than we now have. Supplementing the business sessions were two gatherings in somewhat lighter vein—a stag party at the Mitchell Country Club, and the annual dinner. At the latter O. B. Jesness, chief of the division of agricultural economics of the University of Minne sota, gave an address on “War and the Farmer,” a review of which is pub lished elsewhere in this issue of the N orthwestern B anker . Registration at the convention at Mitchell totaled 165—not so large as at previous annual meetings, but banks from all sections of South Dakota were represented. There were, of course, a number of bankers from the larger financial centers in attendance—Min neapolis, St. Paul, Chicago, New York, Duluth, arid Sioux City, Iowa. On the Firing Line W . G. NELSON Assistant V ice President • k We learned at Mitchell, through the reliable grape-vine system, that the story on “The Directors’ Room page of the June N orthwestern B anker about the new farm hand who, mis taking a cow for a mule, complained he couldn’t put on the collar because its ears were frozen, brought some good-natured ribbing to H. C. Linduski, assistant cashier of the Live Stock National Bank, Sioux City. Mr. Lin duski is now operating a farm upon where he lives, and his associates in the bank seem to feel that while he may know all the banking answers, his acquaintance with agriculture and mules is possibly deficient to the ex tent he might make the same mistake as the farm hand in the story. Be that as it may, his friends will get a real surprise when they see the magnificient crop of spaghetti now matur ing on his farm. At one of the sessions of the con vention, Tom Hayter called attention to Mitchell as being in a class by itself in that in its two banks, there was a father-and-son combination in each, something that probably does not exist in many other cities. In the Commer cial Trust and Savings Bank, H. R. Kibbee is president, with his son, H. R. Kibbee, Jr., a vice president—and now vice president of the South Da kota Bankers Association. M. F. Pat ton is president of the Mitchell Na tional Bank, and his son, J. M. Patton, is a vice president. 47 is attending the university at Vermil lion. Miss Kathryn Sprick has been elected to fill the vacancy. The Farm ers State Bank is being painted both inside and out. SOUTH DAKO TA Sioux Falls News T. N. H A Y T E R President Sioux Falls A ctin g Secretary M IL D R E D S T A R R IN G GE OR GE M. S T A R R IN G Secretary-Treasurer H uron (In the Service) Adds Safety Deposit Boxes To meet the demand for additional safety deposit boxes, the Corn Ex change Bank at Elkton, South Dakota, has added 100 boxes. Purchased from a former bank at Sisseton, the boxes were installed last month. Further additions will be needed in the future. Bertolero Receives Promotion John Bertolero, formerly head of the Miners and Merchants Bank in Lead, South Dakota, has been promoted to lieutenant colonel. He entered service two years ago with the 109th Engi neers of the South Dakota National Guard, and is now somewhere in the British Isles, it is believed.. Directors Meet The regular meeting of the directors of the Bank of Kimball, South Dakota, was held in June with the following directors present: Lloyd Cronholm of Ipswich, L. M. Larsen of Wessington Springs, and Mrs. J. H. Drips of Gann Valley. Ben Jones of Ipswich, a stock holder, also attended the meeting. Dean Heads Bank at Canton E. M. Dean, long time cashier of the Farmers State Bank of Canton, Can ton, South Dakota, was named presi dent of that banking institution at a recent meeting of the board of direc tors. Hogan Iverson was named cash ier, succeeding Mr. Dean who held that position for 35 years. Mr. Iverson has been connected with the bank for the past 25 years. P. S. Paulson was named vice presi dent of the bank. C. E. Anderson was named a member of the board. Other members are Harold Bogue, Oliver Laxson and Knute Ulrickson. Whetstone Association Elects Verner Berg, cashier of the Stock holm State Bank, Stockholm, South Dakota, was elected president of the Whetstone Clearing House Association at a meeting held in Wilmot last month. Leonard Minerman of Dakota N. H A Y T E R , recently-elected I . president of the South Dakota Bankers Association, has been promi nently identified with civic activities in Sioux Falls during the past 12 years. Now vice president of the First National Bank and Trust Company, he has served two terms on the board of directors of the Sioux Falls Chamber of Commerce, and was treasurer of the organization one year. He has also been active in the Ro tary Club, the Taxpayers Association and the Masonic Lodge. Hayter has been in the banking busi ness in South Dakota for 33 years. He began his career at Fedora, moved from there to Alexandria, and then spent 19 years associated with the First National Bank at Vermillion. After nine months with the First Serv ice Corporation in Minneapolis, he came to the Citizens National Bank in Sioux Falls, and became associated with the First National Bank and Trust Company in 1935. During his entire career, the longest vacation he ever enjoyed was of three weeks duration, except for a year spent in the army during the first World War. As to hobbies, he plays a little golf at the Minnehaha Country Club, but prefers to work in his extensive victo ry garden. “ If I have any extra time, I expect this new job in the Bankers Associa tion will take up the slack,” he de clared. Hayter has two daughters, Mrs. Rob ert Brownell, Sioux Falls, and Helen, a student at the University of South Dakota. ~T NEWS State Bank branch at Revillo, was elected secretary-treasurer. The Association, composed of all bankers in Grant and Roberts coun ties, met at the Wilmot auditorium for a fish supper and their semiannual meeting. Banking problems were dis cussed and Fred Phillippi, of the Da kota State Bank, spoke on the war bond program. Veteran Banker Dies A. J. Peterson, former Dawson, South Dakota, banker and a former resident of Deuel county, passed away last month. Mr. Peterson’s father was Register of Deeds of Deuel county at the time the county seat was located in Gary. Aberdeen Debits Show Gain The volume of bank debits in May for Aberdeen indicates that business activity was 20 per cent above the same month last year, while figures for this year to date showed a 25 per cent increase when compared with the January through May period of 1942, These figures were released by the Federal Reserve Bank of Minneapolis. Huron Debits Up 13% The volume of bank debits in May, 1943, for Huron indicates that business activity was 13 per cent above the same month last year, while figures for this year to date showed a 27 per cent increase when compared with January through May, 1942. Further Gains at Yankton The volume of bank debits in Yank ton in May was 20 per cent greater than for the same month a year ago, while for the first five months of 1943 the volume was 39 per cent higher than for the same period in 1942. Changes at Stickney E. G. Bormann, Jr., bookkeeper at the Farmers State Bank, Stickney, South Dakota, and son of the bank’s cashier, has resigned his position and Through the efforts of Pierce H. Mc Dowell, vice president and trust officer of the Northwest Security National Bank, Sioux Falls, has moved into first place in the Northwest in naval officer procurement. McDowell is chairman of the civilian advisory board which recruits officer candidates. Summarizing recruiting fo r the months of April and May, Commander M. A. Hefferman of the Bureau of Naval Personnel, Office of Naval Offi cer Procurement, Minneapolis, an nounced that the local board had re ferred 188 applicants, of which 46 were accepted. Since the program was initiated, the N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 1943 48 • SOUTH board has referred 264 applicants, with 77 accepted, he added. Sioux Falls replaced Duluth in first place by a margin of one recruit. Of 613 applicants interviewed in two months from South Dakota, North Da kota, Minnesota and Wisconsin, 64 were accepted. John Morrell Foster, vice president of John Morrell & Company, meat packers, and manager of the Sioux Falls plant, has been named to the board of directors of the Northwest D A K O T A Bancorporation, which c o n t r o l s 82 banks with 103 offices in Minnesota, Iowa, Montana, Wisconsin, North Da kota and South Dakota, through 95 per cent of stock ownership. Foster was educated at Shattuck School, Lawrenceville, Iowa State Col lege and the U. S. Naval Academy. He has been in the meat packing business his entire life except for a tour of duty, 1917-1919, as an officer in the U. S. Navy. He is also chairman of the South Dakota committee on economic de- B a n k e r s T r u st C o m pa n y NEW YORK CONDENSED STATEMENT OF CONDITION, JUNE 30, 1943 ASSETS Cash and D ue from B a n k s ...................$ 2 8 9 ,2 3 4 ,2 0 7 .8 1 U . S. G overn m en t Securities . . . . 7 8 9 ,3 8 5 ,5 4 9 .6 5 Loans and Bills D iscounted . . . . 3 0 8 ,4 1 7 ,5 4 9 .4 1 State and M u n icipal Securities . . . 2 1 ,0 9 9 ,3 4 0 .2 0 O ther Securities and Investments . . 4 6 ,6 6 3 ,6 7 4 .0 2 Real Estate M o r t g a g e s ............................ 1 ,5 3 8 ,7 3 1 .8 6 Banking P r e m is e s ..................................... 1 4 ,0 0 6 ,4 8 1 .2 2 Accrued Interest and Accounts R e c e i v a b l e .............................................. 4 ,8 9 0 ,0 2 6 .8 3 Custom ers’ Liability o n A cceptances . ________ 6 4 6 ,8 5 6 .0 6 $ 1 ,4 7 5 ,8 8 2 ,4 1 7 .0 6 LIABILITIES C a p i t a l ....................... $ 2 5 ,0 0 0 ,0 0 0 .0 0 S u r p lu s ....................... 7 5 ,0 0 0 ,0 0 0 .0 0 U ndivided Profits . 2 2 ,5 1 5 ,4 9 2 .3 8 $ 1 2 2 ,5 1 5 ,4 9 2 .3 8 D ividend Payable July 1, 1 9 4 3 . . . 8 7 5 ,0 0 0 .0 9 D e p o s i t s ....................................................... 1 ,3 4 7 ,6 3 3 ,3 9 1 .7 4 Accrued T ax es, Interest, etc.................. 3 ,4 2 6 ,8 5 4 .3 3 Acceptances Outstanding . . 7 8 0 ,7 5 6 .3 5 Less A m ou n t in P ortfolio . . . 9 4 ,3 1 2 .8 6 6 8 6 ,4 4 3 .4 9 O th er Liabilities ..................................... 7 4 4 ,7 3 4 .9 2 $ 1 ,4 7 5 ,8 8 2 ,4 1 7 .0 6 Securities in the above statement are carried in accordance with the method described in the annual report to stockholders, dated January 14,1943. Assets carried ar $189,896,555.26 have been deposited to secure deposits, including $169,548,617.98 o f United States Government deposits, and for other purposes. M em ber o f the fe d e r a l Deposit Insurance Corporation N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 1943 NEWS • velopment, and is interested in aero dynamics and the business side of aviation. Oliver A. Bray, assistant cashier at the Northwest Security National Bank, is very active in all branches of the Masonic Lodge in Sioux Falls. In re cent weeks he has been re-elected as treasurer of the grand chapter, Royal Arch Masons;1 Alpha Council No. 1, Royal and Select Masters; El Riad Temple of the Shrine; Sioux Falls Chapter No. 2, Royal Arch Masons, and Minnehaha Lodge No. 5, A. F. and A. M. Among other offices, he also holds the title of wise master of Albert Pike Chapter, Rose Croix No. 2, and past of the Eastern Star, patron of Jasper Chapter No. 8, Order Business statistics in Sioux Falls for the month of May revealed a “healthy trend”, C. A, Christopherson, president of the Clearing House Association and the Union Savings Bank, concluded. The month found the value of live stock receipts zooming to $4,264,951.05, an amount 73 per cent above the level for May, 1942. Bank clearings, how ever, failed to show a corresponding increase, with the gain only 25 per cent above a year ago, compared with 33.3 per cent in April and 47 per cent in March. The reason, Christopherson believed, was that war-swollen incomes of farm ers in the Sioux Falls trade area are going into investments and savings accounts, as well as debt reduction, not reflected in the clearings tabulation. Sioux Falls bankers were well repre sented at the South Dakota Izaak Walton League Convention at Madison in June. Delegates from the local chapter included William Perrenoud, cashier at the First National Bank and Trust Company; Tom S. Harkison, vice president of the National Bank of South Dakota; Ralph AVatson, presi dent of the N o r t h w e s t Security National Bank, and Pierce McDowell, vice president and trust officer of the Northwest Security National Bank. Appointments The Mercantile-Commerce Bank and Trust Company, St. Louis, has an nounced the appointment of Joseph A. Glynn, Jr., as assistant trust officer and M. P. Breckenridge as statistician. Breckenridge was formerly assistant statistician of the bank. 49 Wesley C. McDowell of Grand Forks, who has been active in North Dakota banking circles for many years, has been named executive secretary for the North Dakota general salvage branch of the War Production Board salvage division, announces Linus E. Vorphal of Minneapolis, regional chief, general salvage division. NORTH DAKO TA NEWS H . A . F IS C H E R President W ashburn Opens Business Service Office Resignation of M. J. Reichert as assistant cashier of the First National Bank of Mandan, North Dakota, was effective last month. Reichert, who has been employed by the bank for the past two years, will open a general business and insurance service office, with quarters in the Kennedy build ing, and will offer accounting and tax service to the general public, as well as a full line of insurance. New Cashier at Cando Reuben Wordelman, who has been appointed as the successor of W. D. Johnson as cashier at the first State Bank of Cando, North Dakota, has as sumed his new duties at the bank. Fargo Bank Debits Show Increase Bank debits in Fargo for May were 5 per cent higher than for May, 1942, indicating a continued increase in the volume of business transacted, ac cording to the report of the Minne apolis Federal Reserve Bank. Former Casselton Banker Dies Adolph Lebus of Casselton, North Dakota, retired farmer and former Casselton banker, died recently. A former maintenance superintend ent for the Fargo division of the North Dakota highway department, Mr. Le bus was well known in Cass county political circles, having recently run for county commissioner. He had been in ill health for more than a year. Grand Forks Business Increases Business in Grand Forks, North Da kota, was 25 per cent greater in vol ume for May, 1943, than it was for the same month a year ago, according to a report of bank debit figures re leased recently by the Federal Reserve Bank of Minneapolis. C. C. W A T T A M Secretary Fargo The report indicated that debit fig ures to date for the year showed a 23 per cent increase compared with the same period in 1942. Mr. McDowell, formerly of Marion, North Dakota, has lived in North Da kota for 57 years and served as a director of the Federal Reserve Bank at Minneapolis for nine years. He also has served as supervisor of the Chicago office of the Federal Deposit Insurance Corporation, covering activities in banks in Illinois and Iowa. Mr. McDowell succeeds E. E. Campi on of Bismarck who resigned June 1st. McDowell will headquarter in Fargo. Fargo News W ILLIAM F. STREHLOW , 74, pio neer business man of Casselton and cashier for the First National Bank of Casselton until his retirement in 1935, died in a Fargo hospital. He was the brother of Max H. Strehlow, Kindred banker who died recently. R. H. Barry, who has been assistant cashier at the Merchants National Bank and Trust Company, has as sumed the position of executive vice president of the Fargo Chamber of Commerce, a position to which he was named in May. Mr. Barry, with the Merchants National Bank and Trust Company for three and one-half years, formerly was with banks at Bismarck, North Dakota, and Minneapolis. Capt. George J. Fischer of Wahpeton, vice president of the National Bank of Wahpeton, and the Richland County auditor for many years, has been assigned to a German prison con centration camp at Trinidad, Colorado. Captain Fischer is a veteran of World War 1. Two Fargo bankers were delegates and another an alternate to the con vention of the North Dakota depart ment of the American Legion held in June at Grand Forks, North Dakota. William Stern, president of the Da kota National Bank, and Clarence H. Ol s on , cashier of the Merchants National Bank and Trust Company, were delegates from the Gilbert C. Grafton American Legion post of Far go, and Earl L. Shaw, president of the Fargo National Bank, was an alter nate. Fargo’s four banks, the Merchants N a t i o n a l B a n k and Trust, Fargo National Bank, The First National Bank and Trust Company and the Da kota National Bank, adopted a new system of charges on checking ac counts in June—the Decatur plan. Charges under the new plan are: A maintenance charge of 50 cents a month against each separate account. A charge of 4 cents per item—that is, for each check or other item charged against the patron’s account for the first 100 items. A charge of 3 cents per item for all such sums in excess of 100. A charge of 2 cents for each item deposited—a cash deposit being con sidered one item, and each check de posited being considered a separate item subject to the 2 cent charge. Banks will allow a credit of 10 cents per $100 on the minimum balance, that is, a credit against the smallest amount that was in the account during the month. Under the new plan, the former charge of $1 per month, made against accounts where the bank balance dropped below $100 at any time during the month, is eliminated. Elects Crossley and Owens Robert J. Crossley, assistant cashier of The First National Bank, Chicago, was elected president of the class of 1943 of the graduate school of banking, at the permanent organization meet ing of the class. L. C. Owenp, Jr., as sistant vice president of the Bank of New York in New York City, was elected secretary of the class which graduates this year. N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 19'f3 50 g? SOUND BANKING SERVICE STATEMENT, JUNE 30, 1943 RESOURCES Cash and Due from Banks_____ U. S. Government Obligations_ Municipal B on d s____________ Other B on d s________________ Loans and Discounts__________ Bank Premises ______________ Stock in Federal Reserve Bank Other Assets_________________ ______________ $21,155,124.61 $30,091,743.74 . 1,850,511.46 1,646,097.65 33,588,352.85 ____________ 4,619,625.08 ____________ 735,000.00 ____________ 66,000.00 ____________ 176.964.21 Total $60,341,066.75 LIABILITIES Deposits—Commercial and Individual___________ $30,411,017.75 Banks ---------------------------------------------- 15,702,063.71 Time ----------------------------------------------- 4,146,568.94 Public Funds________________________ 3,917,509.05 War Loan Account___________________ 3,415,136.25 $57,592,295.70 Capital Stock--------------------------------------------------- 1,100,000.00 Surplus ----------------------------------------------------1,100,000.00 Undivided Profits and Reserves_________________ 466,383.88 2,666,383.88 Other Liabilities ___________________________________________ 82,387.17 Total $60,341,066.75 /* U N IT E D S T A T E S D A.W K o/(PmaAa 7 M E M B E R N o r th w e s te r n B a n k er FDIC July 19b3 x https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 treasurer of the Nebraska 4-H Club fair of Fremont, belongs to the Fre mont board of public works and is a member of the regional board of the Boy Scouts. Mitten’s appointment is the second to be made by Johnson. E. L. Smith, vice president of the Magee store of Lincoln, was recently named chairman for Lincoln. NEBRASKA NEWS R. F. C L A R K E (O n leave of absence w ith Red Cross) Papillion Pierce Heads Bank A t Osceola W. H. Pierce, president of the First National Bank of Shelby, Nebraska, is to be the new owner of the First National Bank of Osceola. The Osce ola bank will begin liquidation July 1st, according to Pierce, who said that his purchase of all the stock assured that the bank would keep it an operat ing concern. The new owner will retain his in terest in the Shelby bank. New Cashier at Sidney Marius Christensen has been named cashier of the American National Bank of Sidney, Nebraska, according to A. J. Jorgenson, president of the bank. Christensen replaces Dale W. Reyn olds, who resigned to accept a similar position with a bank at Cozad. Mrs. Maggie Bartholomew has been promoted to the office of assistant cashier at the institution. Honorable Discharge From Army Joe Bauer has resumed his work at the Hastings National Bank, Hastings, Nebraska, following his honorable dis charge from the army to return to work in industry. Bauer is 38 years old. He had been in the service for nine months. Jay Paul Returns to Bank N. J. Paul, who has been in the For estry Department of the Soil Conser vation office for a number of years, has returned to the St. Paul National Bank where he will serve. He re places C. E. Arterburn, who plans to go to the West. The return of Mr. Paul to the bank which his grand father had founded will be pleasing to his many friends. Enters Bank Employ Miss Maxine Eckles, who was a member of the graduating class of the WM. B. H U GH ES Secretary Omaha Plattsmouth, Nebraska, high school this year, has entered the employ of the Plattsmouth State Bank as one of their clerks and bookkeepers. Begins Duties at Bank Arlene Utemark has assumed her duties as bookkeeper at the First Na tional Bank of Emerson, Nebraska. She succeeds Sterling Henderson, he having been inducted into the army and sent to the reception center at Fort Leavenworth, Kansas. New Employe at Crete Mrs. Willard Cole has accepted a po sition at the Crete State Bank, Crete, Nebraska, and began her duties there last month. She has been employed in the office of the Crete Mills and is a former employe of the City National Bank. New Banking Hours New banking hours have been estab lished at the Bank of Hemingford, Ne braska. The bank will be open from ten o’clock a. m. to four o’clock p. m. and will remain open during the noon hour. New Clerk at Ashland Miss Mildred Simek has accepted a secretarial position at the Citizens Na tional Bank of Ashland, Nebraska, taking the place of Miss Doretta Bundy. Prominent Banker Dies I. J. Wehrman, 69, cashier of the Commercial Bank at Nelson, Nebras ka, and a prominent citizen of that city for many years, died in a Kansas City hospital last month. Well known in state banking circles, Mr. Wehrman was always active in civic affairs at Nelson, serving for many years on the board of education, on the city council and in other posi tions of trust in his home community. Saunders Named Treasurer Charles D. Saunders, late cashier of the First National Bank in Denison, Iowa, and now vice president of the Omaha First National Bank, has been elected treasurer of the Omaha Cham ber of Commerce. By virtue of his office he will be a member of the ex ecutive committee. Extensive Remodeling For New Bank Work began recently in making ex tensive changes in the banking room of the old American State Bank build ing at York, Nebraska, which was pur chased last week by the York State Bank, soon to open. The fixtures are being modernized by removing the tall glass partitions that separated the teller cages from customers. The heavy screens at the windows will be replaced with Vene tian blinds. The walls of the room will get a complete decoration. Asked when the new bank would be ready for business, R. W. Smith, the cashier, said it was impossible to say at this time. Mitten Named Economic Chairman Takes Place in Bank William N. Mitten, president of the Stephens National Bank of Fremont, Nebraska, was appointed chairman of the committee for economic develop ment there, it was announced by Alvin E. Johnson, Nebraska chairman for the CED, and chairman of the Omaha Chamber of Commerce industrial com mittee. Mitten is a member of the Fremont chamber’s board of trustees, chairman of the chamber’s industrial committee, head of the good roads committee, G ag e County Bankers Meet Miss Alta Lindeburg has accepted the position in the Adams County Bank of Kenesaw, Nebraska, left va cant by the resignation of Mrs. Gishwaller. A second meeting of the bankers of Gage county was held in Beatrice, Nebraska, with L. Boyd Rist, chair man, and Gordon Jones attending from Wymore. The meeting was giv en over to the solving of banking probN o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 19 43 52 • lems and it was unanimously decided that a uniform system of service charges should be agreed upon and placed in operation. Plans are also underway to present the bankers’ problems to the public by newspaper advertising, with the hopes that in this manner a better un derstanding can be reached with their customers. Association Pays Dividend A regular semiannual dividend paid to all investing members June 30, 1943, at the annual rate of 3 per cent was declared by the board of directors of the Nebraska City Federal Savings and Loan Association recently. The payment of dividends at this rate has been approved by the Federal Savings and Loan Insurance Corporation of Washington, D. C. NEBRASKA NEWS 25 Years in Bank Twenty-five years ago in June Paul Uds commenced working in the Farm ers & Merchants Bank at Deshler, Nebraska. Friends extended him con gratulations on his arriving at the first quarter century milestone in the banking business. New Director The directors of the State Bank of Burchard, Nebraska, held a business meeting in the bank last month. Along with other business transacted Harold Stake was elected as director to suc ceed the late Ben Wischmeier. New Bank in Verdigre Verdigre’s newest business enter prise, the Bank of Verdigre, opened its doors to the public July 1. The Bank S i. Joseph, Mo. O F F IC IA L S T A T E M E N T June 3 0 , 1 9 4 3 RESOURCES Loans ..................................................................................................................................... $ 2,898,918.22 Banking House .................................................................................................................... 125,000.00 Other Real Estate................................................................................................................ None Federal Reserve Bank Stock............................................................................................. 12,000.00 United States O bligations........................................................................ $7,476,597.92 Cash and Sight Exchange......................................................................... 6,248,373.85 13,724,971.77 $16,760,889.99 LIABILITIES Capital Stock ....................................................................................................................... S 200,000.00 Surplus and Profits.............................................................................................................. 308,439.63 Reserves ................................................................................................................................. 10,090.00 Deposits— Banks ................................................................................................... $7,230,194.87 Individual ............................................................................................. 8,231,808.87 U. S. Government................................................................................ 780,446.62 16,242,450.36 $16,760,889.99 H E N R Y KRU G, JO H N W . BRO AD DU S, V ice Chairman R. R. C A L K IN S , President GEO. U. RICHMOND, V ice President Member Federal Deposit of Verdigre is successor of the Verdi gre Cooperative Credit Association. The Bank of Verdigre will be a com mercial bank and will carry on the usual business as the cooperative asassociation. Pawnee County Bankers Meet The Pawnee County Bankers Asso ciation held a meeting in Pawnee City in June and all banks in the county were represented. These officers were elected: Chairman, John A. Barr, Pawnee City; assistant chairman, Guy, F. Bonham, Table Rock; secre tary-treasurer, Max Church, DuBois. Howard Wilson Dies Howard O. Wilson, 67, Omaha, vice president of the Live Stock National Bank, died at an Omaha hospital re cently. T h e O ldest B a n k in St. Joseph AMERICANNATIONAL BANK, » Jr., Chairman B E V E R L Y PITTS, Cashier A. H. BAN SBA C H , Assistant Cashier JOH N T. R U TH E R FO R D , Assistant Cashier Insurance C orporation JC A former owner of a cattle ranch near Long Pine, Wilson was affiliated with the bank since 1921. He was a member of the Chamber of Commerce, Masonic lodge, Nebraska Bankers As sociation and the National Institute of Banking. Bank W all Collapses A rather unusual accident occurred at the Citizens State Bank building, Haddam, Nebraska, recently. The out er layer of brick, which was faced with a stucco finish, gave way at one corner. A slab of brick and stucco about eight feet high probably had been loose for some time and it is thought that the heavy rain the pre vious night had loosened the brick still more, letting the wall collapse. À t OF THE N ATIO N IS OM AHA OF OMAHA IS THE 1ST NATIONAL BANK PLUS O V E R 85 Y E A R S O F M A K E S T H IS H O M E -O E L O G IC A L P L A C E FO R D E P E N D A B IL IT Y — S E N D U S Y O U N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 1943 E X P E R IE N C E W N E D B A N K S E R V IC E AND R C A S H IT E M S i 53 convention program was streamlined and included roundtable discussions rather than a long list of speakers. Little home construction, except in defense areas, was reported. The “grand old man” of Nebraska building and loan associations, 95-yearold T. L. Mathews of Fremont, Ne braska, was again named presidentemeritus of the association. He served as president many years. Will Rowe of Fremont, C. E. Grun dy of Grand Island and E. M. Boyington of McCook were elected vice presi dents. j N THE 20 weeks up to June 1st, | Omaha piled up an impressive rec ord in percentage of increase in weekly bank clearings for metropoli tan cities, a report by Dun & Bradstreet, Inc., showed. During that period, Omaha 14 times rated first in the nation in percentage of increase, four times was second, once fourth, and once thirteenth (the week of the disastrous Missouri river flood). A typical week, that of May 19th, found Omaha first with a 54.1 per cent gain. Other sharp increases: Portland, Ore., 29.9 per cent; Dallas, Texas, 25.2 per cent; Houston, Texas, 25.1 per cent; Kansas City, Mo., 22.8 per cent. Nelson G. Kraschel, former governor of Iowa and now general agent for the Farm Credit Administration with headquarters at Omaha, recently re ceived word at Harlan, Iowa, his for mer home, that his son, Richard, 24, test pilot for the Bell Aircraft Corpora tion, was killed at a training field be tween Buffalo and Niagara Falls, New York. He died when his parachute failed to open after he had bailed out at low altitude from an army plane dur ing a routine test flight. Carl Chalstrom and son, Arthur Chalstrom, have acquired controlling interest in the Griswold, Iowa, State Bank from T. C. Hornsby, president of the bank since 1936, who will retain an interest and remain a director. BANKS Mr. Hornsby went to Griswold from Omaha, where he was associated with the Regional Agricultural Credit Cor poration. The elder Chalstrom is pres ident of the Griswold bank, his son cashier. A. E. Wilde of Cheyenne, Wyoming, has been elected vice president of the Federal Land Bank of Omaha to suc ceed M. E. Welsh, Jr. Mr. Welsh recently was elected president of the Federal Intermediate Credit Bank of Omaha. The election of Wilde took place at the May meeting of the Farm Credit Administration Board at Omaha. Phil Hockenberger of Columbus, Ne braska, was elected president of the Nebraska League of Savings and Loan Associations at its annual meeting in Omaha recently. He is president of the Consumers Public Power district. Because of wartime conditions, the BANK EMPLOYEES PLACED. 38 Years Satisfactory Service T H E C H A R L E S E. W A L T E R S C O . “We are being fed economic theories instead of food and you have no idea what a poor diet that is,” said Fulton Lewis, Jr., the radio commentator, when he came to Omaha recently to speak at Central High school audi torium. He said he was “frankly alarmed” about the food situation. He made his usual broadcast while in Omaha. After his arrival, he was guest of Alvin E. Johnson, president of the Live Stock National Bank of Omaha, at a breakfast, attended by 30 livestock and grain men. “The only approach to the solution now seems to be to remove all price R E P O R T OF C O N D ITIO N TH E H A S T IN G S N A T IO N A L B A N K H ASTING S, N E B R A SK A JUNE 30, 1943 RESO U RCES Loans and Discounts.......................................................... ..........................................................$ 910,242.83 Overdrafts ....................................................................................................................... 1,069.51 Stock in Federal Reserve B an k........................................................................................... 6,600.00 Bank Building .................................................................................................................... . 19,200.00 Furniture and Fixtures......................................................................................................... 3,847.86 Interest Earned but Not Collected........................................................................................... 20,047.58 United States Government Bonds............................................................... $3,859,185.81 Municipal Bonds and W arrants.................................................................... 98,003.43 Other Bonds .................................................................................................. 39 805.22 Cash and Sight Exchange............................................................................. 2,752,180.87 6,7 4 9 ,17 5 .3 3 $7,710,183.11 L IA B IL IT IE S Capital Account Common S t o c k ..................................................................................................................... $ 125,000.00 Surplus .............................................................................................................................. 95,000.00 Undivided Profits and Reserves.................................................................................. 87,356.66 Deposits .......................................................................................................................................... 7,402,826.45 Bought and Sold Confidentially and with becoming dignity Bonds totaling $105,000 to provide funds for river levee work, as a result of the disastrous Missouri river flood in May at Council Bluffs, were bought by the First National Bank of Chicago as bids were opened at a meeting of the Council Bluffs city council. Interest rate on the bonds will be 114 per cent, and an $800 premium paid by the buyers should lower the interest cost to 1.1 per cent, city offi cials estimated. Ten companies sub mitted bids on the bonds, which are issued on a 15-year basis. H. G. PRATT, President OFFICERS AND DIRECTORS $7 71 0 1 83 11 O. A. RILEY, Vice President CHAS. E. DEETS, Cashier J. LEO SWIGLE. Assistant Cashier JOSEPH BAUER, Assistant Cashier L. J. McCtTNE, Assistant Cashier HAZEL HORN, Assistant Cashier C. E. BYERS STEPHEN SWIGLE R. R. VANCE Member Federal Deposit Insurance Corporation OM AHA, NEBRASKA N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 19^3 54 • NEBRASKA ceilings, keep rationing and try to go on from there,” Lewis said. Lewis said he was “fascinated” by the situation outlined by Emil Placek, Wahoo, Nebraska, banker-farmer, in which Placek is still being paid by the government to raise sweet clover on land that could be planted to corn. While in Omaha, Lewis visited the stock yards with Mr. Johnson and Harry B. Coffee, former congressman who now is president of the Omaha Union Stock Yards Company. Dale Clark, president of the Omaha NEWS• National Bank, was principal speaker at a Tribe of Yessir “stay-at-home” dinner honoring The Omaha WorldHerald for winning the 1942 Pulitzer prize for public service, for originating and carrying out the scrap salvage campaign. Other speakers included Leo Bozell, new president of the Chamber of Commerce. Mr. Clark also recently was re elected p re s i d e n t of the Omaha Y.M.C.A. Nebraska bankers are pleased with passage of the Nebraska installment (ommercefrust (ompany 18-1 Established 1865 KANSAS CITY, MISSOURI Member Federal Reserve System Statement of Condition at Close of Business June 30, 1943 RESOURCES Cash and Due from Banks____________________ $113,372,069.04 U. S. Obligations, Direct and Fully Guaranteed_ 134,361,016.47 State, Municipal and Federal Land Bank Bonds. Stock of Federal Reserve Bank_______________ Other Bonds and Securities---------------- $247,733,085.51 18,970,278.99 300,000.00 6,055,457.59 25,325,736.58 Loans and Discounts_______________________________________ 56,792,468.33 Bank Premises and Other Real EstateOwned________________ 1,942,501.00 Customers’ Liability Account Letters ofCredit_______________ 45,875.43 Accrued Interest Receivable________________________________ 322,687.53 Overdrafts ________________________________________________ 3,926.87 Other Resources __________________________________________ 4,627.83 Total Resources----------------------------------------------------------- $332,170,909.08 LIABILITIES Deposits--------------------------------------------------------------------------- $317,250,564.68 Capital-------------------------------------------------------------$6,000,000.00 Surplus ------------------------- 4,000,000.00 Undivided Profits -------------------------------------------- 4,553,934.34 14,553,934.34 Reserve for Dividends Declared____________________________ 60,000.00 Liability Account Letters of Credit_________________________ 45,875.43 Accrued Interest, Taxes and Expense________________________ 260,362.84 Other Liabilities__________________________________________ 171.79 Total Liabilities----------------------------------------------------------- $332,170,909.08 M em ber Federal D ep osit Insurance Corporation N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 1943 loan bill, according to the Nebraska Bankers Association. The law re moves the restrictions which have barred most local banks from making small installment loans. Heretofore, the loans by banks throughout the state, except in the larger cities, usually have been commercial or agri cultural loans repayable in one sum. Omahans saw a $100,000 bill and the first piece of currency ever issued, when they attended an exhibit pre sented under the auspices of the secret service to fight an enemy that has been hampering the war effort in every city in the United States— counterfeiting, labeled the “silent sa boteur” by government agents. With service allotment checks top ping the four million mark each month, forgers have been operating in lush fields. The methods of forgers as well as those of the counterfeiters are exposed by the exhibits and lec tures, which continued in Omaha for several weeks. The First National Bank of Omaha and Orchard & Wil helm Company were sponsors. Mayor Dan Butler opened the show. For the fourth time in the history of the country, war stamps were printed in view of the public. The only other times this has been done were in New York, Detroit and Cleveland. The $100,000 bill on exhibition was stolen four times, and each time it was recovered by the secret service. Count erfeit bills were exhibited that were recovered in this section of the coun try. “What we want to stress,” said Secret Service Agent Fremont Strout, “is that this exhibition is one that is vitally concerned with the war effort and the pocketbook of every adult. “Once you take a bad bill or indorse a bad check, you are stuck with it. We are trying to teach people how to defend themselves.” Douglas county has contracted with Omaha banks to borrow money at IV2 per cent, under the provisions of the tax anticipation note plan approved by the Nebraska legislature. The county has been paying 6 per cent interest on warrants. Approving the contract, however, was merely an enabling act, and County Treasurer Ernest A. Adams said it might be possible for the county to get along the rest of this year with out borrowing money. Adams estimated the county will save more than $25,000 a year in in terest as the result of these financing procedures. 55 County Board Chairman Leonard Bergman proposed the IV2 per cent rate, and Ellsworth Moser, executive vice president of the United States National Bank, which will be trustee for six Omaha banks under the con tract, said: “There are lots of rates we’d like to get—but in the county’s interest we are prepared to sign this contract at IV2 per cent.” The contract runs to the end of this year. It is the first time the county has had a “unified” financing procedure of this kind. In the past, bills were paid by warrant when a fund was depleted. The payee registered the warrant to draw interest, and disposed of it wherever possible. Now the county will pay in cash, handling the financing through the banks. Ensign Nile Kinnick, 24, of Omaha, both all-American halfback and Phi Beta Kappa honor student at the Uni versity of Iowa, was killed while flying a fighter plane from an aircraft carrier in the Atlantic, his parents, Mr. and Mrs. Nile C. Kinnick, were informed by the navy one evening in June. The next day, his father, an analyst for the Federal Land Bank of Omaha, appeared at his office as usual and attended a meeting of land bank execu tives, none of whom knew of the tele gram which had come the evening before. Kinnick turned down a $15,000 pro fessional football offer because he wanted to study law. He had com pleted one year in law school when he enrolled in the navy flying corps. Mrs. Richard H . Mallory and daugh ter, Miss Ann Mallory, left June 15th for Cincinnati, Ohio, to join Et. Mal lory, USN, who is on leave from his duties as vice president of the United States National Bank of Omaha. Miss Barbara Mallory remained in Omaha until she left June 22nd for Camp Nagawicka at Delafield, Wis consin. The Mallory residence in Omaha will be occupied during the family’s absence by Lt. Robert E. Woods, USN, and Mrs. Woods. H ENRY J. AM EN, Lincoln grocer, and George Knight, president of Citizens Bank, were appointed by Gov ernor Griswold to directorships on the new Lincoln sanitary district board. Frederick Warner, investment offi cer of The First Trust Company of Lincoln, was granted a leave to attend the graduate school of banking, which the American Bankers Association conducts at Rutgers University, New Brunswick, New Jersey. The graduate school was founded in 1935 to provide advanced graduate study for officers of banks in all phases of banking, in economics, law, govern ment, and philosophy. Six hundred bank officers have attended each year. Due to war conditions the enrollment this year is 400. State Banking Director Wade Martin has announced the granting of a char ter to the York State Bank at York which has capital stock of $50,000, surplus $10,000 and undivided profits of $5,000. Martin said the bank is the largest in total capitalization to receive a charter since December of 1940, when a charter was issued to a state bank at Chadron. An application to charter a bank at Verdigre was made to the state bank ing department with J. J. Chalupnik tentatively named as president of the new organization. Other incorporators named include V. W . Marshall, Dr. J. T. Bruce, Ben Roubicek and Adolph Kotrous. The capital stock will amount to $15,000, surplus $2,500 and undivided profits at $500, although the right to increase the capitalization to $25,000 was asked in the application. For Speedy Efficient Economical Collection . . . Employed at Bank Charles Korb has taken a position at the National Bank of Norfolk, Ne braska, and began his work there last month. He was formerly employed at the bank in West Point and then by the Central Finance Company in Norfolk. YO U R STATE BA N K ER S A S S O C IA T IO N O F F IC IA L SA FE, V A U L T A N D TIM ELO CK EXPERTS F. E. DAVEN PO RT & CO. Send Your Items to Us! C o n t in e n t a l 5 R a t io n a l a/ k °f~ L I NCOL N Member Federal Deposit Insurance Corporation OM AHA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker July 19J3 56 • NEBRASKA A law suit started in 1941 by eight national banks doing business in Ne braska and brought against Attorney General Walter Johnson and State Banking Director Wade R. Martin, has been dismissed without prejudice on motion of the plaintiffs. In their petition, the various banks claimed that a bill just passed by the legislature of that year violated the rights and duties of national banks as subscribed by the Acts of Congress. The action was dismissed because the last session of the unicameral legislated further on behalf of banks, causing the contention of the plaintiff to resolve itself into a moot matter. NEWS Burdick to Army Howard L. Burdick has resigned his position as cashier of the Central Na tional Bank, Columbus, Nebraska, to enter the armed service of his country. N EW S A N D VIEW S O F THE B A N K IN G W O R LD (Continued from page 14) pleasant being a banker than taking drugs but at least this druggist quit the drug business to become a banker. Harry J. Lazarus, who has been advertising manager, has been ap- O F LIN COLN. N EBR ASKA At the Close of Business. June 30. 1943 L IA B IL IT IE S Capital .............. $350,000.00 Surplus ............ 400,000.00 Contingent Reserves . . . 500,000.00 Undivided P ro fits ............ 138 555.04 $ 1,388,555.04 Reserve for Dividends.................. 14,000.00 Letters of Credit........................ 5,000.00 Deposits ........................................ 32,020,241.55 $33,427,796.59 $33,427.796.59 M. WEIL, President BYRON DUNN, Executive Vice President JULIUS WEIL, Vice President and Trust Officer PAUL BOGOTT, Cashier ALBERT A. HELD, Vice President GLENN YAUSSI, Assistant Cashier ERNEST C. FOLSOM, Vice President and Assistant Trust Officer Member of the Federal Deposit Insurance Corporation Out-of-Town Banks O u t-of-tow n banks and bankers will find here com plete banking facilities for prom pt and economical handling of accounts in Chicago. W e would appreciate the opportunity o f serving you. C it y N a t io n a l AND TR U ST 2 0 8 S O U T H C O M P A N Y H N o r th w e s te r n B a n k er J uly 1943 a n k of C h i c a g o L A S A L L E (Member Federal Deposit Insurance Corporation) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis pointed assistant to the president of the Central National Bank in Chica go. Carl F. Kuehnle is president of the bank. W . H. Brenton, president of Brenton NATIONAL BANK OF COMMERCE RESO U RCES Loans and Discounts..................... $ 2,727 316.36 Overdrafts ...................................... 17.68 Banking House, Furniture and Fixtures ................................... 223,250.00 None Real E s ta te ................................... U. S. Bonds .............................. 20,150,000.00 Other A s s e ts ................................. 5,667.74 Warrants ...................................... 1,500.00 Customers Liability for Letter of C r e d it ................................... 5 000.00 Stock FederalReserveBank . . . . 22,500.00 Cash and SightExchange.............. 10,292,544.81 • S T R E E T Brothers, Incorporated, advises the that Ivan Trottnew of Vinton has been elected a di rector of the Benton County Bank and Trust Company of that city. Mr. Trottnew is a farmer and manager of the local REA in Benton county, which is operated out of Vinton. All other directors were re-elected. This bank was started June 6, 1942, and now has deposits of $870,000. N orthwestern B anker of Under circular W T of the Bureau Internal Revenue, paragraph 2 reads: “ It will be the duty of employ ers who withhold more than $100 dur ing the month to pay the amounts withheld to a depositary authorized by the Secretary of the Treasury. “These payments are to be made within ten days after the close of each calendar month. “Employers may get from any bank the name and address of authorized depositaries.” W . L. Spencer, president of the Oak land Savings Bank of Oakland, Iowa, was a caller at the N orthwestern B anker office recently and reported that deposits of his bank had reached an all time high of over $1,250,000. Mr. Spencer said that there was a great deal of cattle feeding going on in his area at this time. He also be lieves that the service charge program which is being worked out by Superin tendent Melvin Ellis of the State Bank ing Department is a most excellent one. G. AT. McSweeney, president of the De Luxe Check Printers, Inc., Chica go, is suggesting that employers pay the service charges for their employes’ checking accounts, and believes this would help not only the relationship between employers and employes but would also be a real benefit to the bank and these employe customers. In commenting on this Mr. Mc Sweeney says, “ AAfill employers be willing to pay a service charge for employes’ checking accounts? AVe certainly can’t definitely say that they won’t, and there are many reasons why they should. Employe relations are mighty important these days and millions of dollars are being spent for group insurance, medical service, safe ty programs, restrooms, recreation, 57 • NEBRASKA NEWS • \ bus transportation, noonday shows, piped-in musical programs, and even free Turkish baths and violet ray treat ments. Many of these gestures are sound and, of course, some of them are extreme. The point is that they cost a lot of money, so what is fifty cents or a dollar a month per employe if it will save him and his family time, gasoline, money order costs and cash ing fees?” month. The men at sea are not talk ing of 40 hours per A v e e k . They’re working 12 hours out of every 24.” W . G. Morton, treasurer of the Onondago County Savings Bank of Syra cuse, New York, in explaining his views about rating services says. “As far as rating services are concerned and their value to a portfolio manager, they are good historians and that is H. Li. Young, president of the Citi zens and Southern National Bank of Atlanta, Georgia, has just published an advertisement entitled “A Message to Bank Men and Women” and tells of the fine work they are doing in helping to furnish the billions of “Fighting Dollars” with which to finance the war, and finishes his adver tisement with these very effective words: about all. Everyone knows that the rule of investment is that of change, and the rating services do an excellent job of keeping track of these changes —about six months hence!” O. A. Riley, vice president, Hastings National Bank, Hastings, Nebraska, in sending out his June 30th statement, said: (Turn to page 67, please) THE FIRST NATIONAL BANK McCOOK, NEBRASKA Condensed Statement at the Close of Business June 30, 1943 “You may not wear the uniform of service— your name will not make the headlines for heroic deeds— but you —the bank men and women of Ameri ca— can be proud of your part in win ning the victory which is sure to come. In such spirit do we salute you as a real Service Arm y.” RESO U RCES Loans and Discounts....................... $ 669,818.81 Overdrafts ........................................ 165.77 Stock in Federal Reserve Bank. . . . 3,700.00 Banking House, Furniture and ............. 19,062.67 Fixtures U. S. Government Bonds S2,.130,634.57 Municipal Bonds and Warrants . . . 323,763.08 Other Bonds . . 33,226.00 Cash and Sight Exchange. . . 1 ,3 33,400.92 3,821,024.57 L IA B IL IT IE S Capital Stock ......... .......................$ 75 000.00 Surplus Fund ................................. 47,000.00 Undivided Profits .......................... 47,988.84 Reserves ........................................ 55,311.21 D E P O S I T S .............................. .. . . 4,288,471.77 $4,51 3,771.82 $4,513,771.82 O F F IC E R S Holland Larmon, President AND D IR E C T O R S H. M. Krogh, Cashier H. P. Waite, Vice President Max Billesbach, Assistant Cashier D. N. Cobb H. P. Sutton Member of the Federal Deposit Insurance Corporation “An Index of Confidence” is pub lished each month by Brigadier Gen eral Leonard P. Ayres, vice president of the Cleveland Trust Company, and this Index is now higher than it has been at any previous time since the spring of 1937. The Index is based on the differences between the yields of corporate bonds of the highest quality and those of corporation bonds of medium quality. When investors are optimistically confident about the general business outlook, they simply regard the prospects of weaker com panies as being almost as good as those of the strongest ones. When prospects for business become dis couraging, investors seek safety rather than income, then the prices of the second rate bonds fall below those of the higher grade issue. Ensign Darwin T. Lynner, a former Des Moines insurance man and now in command of a navy submarine patrol boat, was home on a short vacation recently and in discussing strikes and labor difficulties said, “ I think you can safely say that the dominant thought of service men is one of im patience with strikers. “You might just as Avell take a pot shot at the boys in the back as deprive them of the things they need through labor troubles. They’re out there flip ping coins for their liAes— at $50 a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r T H E O N L Y B A N K IN T H E S T O C K Y A R D S F Y O U have excess liv esto ck lo a n s, ask us h ow we can h elp y o u be o f in creased service to y ou r c u sto m ers. W e specialize in livestock h a n k in g . I O F F I C E R S FRAZER L. FORD, President J. A. GREENFIELD, JR., Vice-President HARRY H. MOHLER, Vice-President RAY W. SNYDER, Cashier T. J. McCULLOUGH, Asst. Cashier M. E. BLANCHARD, Asst. Cashier tyisiit St. {jo-ienli STOCK YARDS BANK Sa. St, ¡jatefilt, Mti'A&usii Member Federal Deposit Insurance Corporation J N o r th w e s te r n B a n k er J u ly Í9J3 58 LIVE STO C K N A T I O N A L B A N K of O M A H A , NEBRASKA Statement of Condition June 30 , 1943 RESOURCES Loans and Discounts........ ...... ........... .....................................................$ 9,040,502.60 Bonds and Other Securities...................... _................................... ...... 102,271.00 Stock in Federal Reserve Bank......... ............ _................................... 37,500.00 Banking House and Fixtures............. ........... ....................................... 1.00 Other Real Estate............................................ ..... .J............................... None U. S. Government Securities................................$22,540,705.01 Cash and Sight Exchange and due from Federal Reserve Bank...................................... 15,597,951.66 38,138,656.67 $47,318,931.27 L IA B IL IT IE S Capital Stock (Com m on)......................................................... ....... Surplus (Earned) ........................................... ..................................... Undivided Profits ................................................................................ Reserve for Taxes, Interest, E tc............................................ Unearned Discount.............................................................................. Dividends Payable June 30, 1943 .......................................... Deposits— Banks (N e t)------------------------ ------- ------- ------- $26,251,574.35 Other Deposits............ .................... ........... ...... 19,255,252.36 500.000. 750.000. 00 315,275.30 234,883.75 4,445.51 7,500.00 45,506,826.71 $47,318,931.27 OFFICERS AND DIRECTORS ALVIN E. JOHNSON President H. C. KARPF R. H. KROEGER V ice President V ice President PAUL HANSEN C ashier L. V . PULLIAM A sst. C ashier W. C. G. PEARSON H. H. ECHTERMEYER A sst. C ashier P. ADKINS C hairm an Asst. C ashier L. S. BURK H. B. BERGOUIST C h ica go C oal an d Grain T. E. GLEDHILL JAS. J. FITZGERALD Farm er LEO T. MURPHY Pres. C om m ercial Sav. & Loan A ssn M gr. A llie d Mills, Inc. HERMAN K. SCHAFER CARL A . SW AN SON Pres. M a n ey M illing Co. Pres. Jerpe Com. & C old S torage Co. J. L. WELSH Butler-W elsh G rain Co. Member Federal Reserve System and Federal Deposit Insurance Corporation N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 19 13 00 59 Branch of the Cantril Savings Bank, has been inducted into the navy. Mr. Casady has been identified with the business interests of Milton for several years, and will be missed in the busi ness circles of the town. N EW S Safety Deposit Boxes Installed B. A. GRON STAL President FRANK W ARNER Secretary C ouncil Bluffs Des Moines Allamakee County Bankers Elect The annual meeting of the Allama kee County Bankers Association was held in the Waukon State Bank, Waukon, Iowa, recently. Fred O’Riley, county agent and secretary of the War Board and Man Power committee of Allamakee county, spoke on the Man Power problem. W. F. Kneeland, Post ville, chairman Allamakee county War Savings Staff, discussed the future sale of War Bonds. The following officers were elected for the ensuing year: President, Moritz Kerndt, Jr., vice president, Kerndt Bros. Savings Bank, Lansing; vice president, J. E. Welch, cashier, New Albin Savings Bank; secretary-treasur er, Leo L. Samek, assistant cashier, Waukon State Bank. Assumes Bank Duties Starting last month, Miss Esther Drake took her place behind the coun ters at the Walnut State Bank (Iowa), where she will succeed Miss Helen Hamilton, who has served this estab lishment in a most efficient way for the past three years. of Swisher, secretary, and O. E. Markitan of Solon, treasurer. The retiring president is M. B. Guth rie and vice president for the past year has been Mr. Bock. Purchases Control A t Griswold Carl Chalstrom and son, Arthur Chalstrom, both of Fenimore, Wiscon sin, purchased controlling interest in the Griswold State Bank of Griswold, Iowa, from C. J. Hornsby, who is re tiring because of ill health. Hornsby will remain on the board of directors. Carl Chalstrom will be president and Arthur Chalstrom, cashier. The Chalstroms formerly held banking inter ests at Primghar and Gaza. Bank's Stock Increased Stockholders of the Capital City State Bank of Des Moines, at a special meet ing in Des Moines last month voted to increase the capital stock from $150,000 to $200,000' by adding a stock dividend of $50,000. The new capital structure of the bank is comprised of the $200',000 capi tal stock, a $100,000 surplus, and un divided profits and reserves in excess of $50,000. Assistant Resigns Alvin G. Hansen, who for the past five years has been an assistant cashier at the Farmers Trust & Savings Bank, Spencer, Iowa, has resigned his posi tion and will become assistant man ager of the Pioneer Theater in Jeffer son. Johnson County Bankers Elect Lester Bock of the First Capital Na tional Bank of Iowa City has been elected president of the Johnson Coun ty Bankers Association. The newly chosen v i c e p r e s i d e n t is F r an k Schweitzer of Oxford. The secretary and treasurer of the association were re-elected for the en suing year. They are Elmer J. Ulch Karstcn Heads Newton Bank Directors of the Newton National Bank have announced the election of Orlo N. Karsten as president to suc ceed Harry C. McCardell, who died re cently. Karsten has served as execu tive vice president the last eight years and has been associated with the bank since its organization 12 years ago. Clyde A. Peck, former vice president, was named chairman of the board. Walter T. Robinson, former cashier, was elected vice president. Marc L. Hickman, former assistant cashier, will replace Robinson as cashier and Veva Childs was named assistant cash ier. Called to Service Carl R. Casady, cashier of the Milton Two hundred fifty new safety de posit boxes have been installed in the First National Bank of Oelwein, mak ing a total of 1,160. The glistening new fireproof boxes are of metal that is practically indestructible and were ordered last December. New Bank Manager Joseph W. Holets, who lives on his farm near Ely, Iowa, has been ap pointed as manager of the Ely office of First Trust and Savings Bank. Mr. Holets, a native of Ely and an active farmer and community worker in that vicinity for more than 35 years, suc ceeds Jerry Bys, who resigned to be come identified with the Federal North Iowa Grain Company in Cedar Rapids. Re-elect All Officers At a meeting of the board of direc tors of the Fredericksburg First State Bank, all of the officers of the institu tion were re-elected. They are: H. S. Kerssen, president; E. A. Ellison, vice president; C. E. Leach, cashier; W. F. Borcherding, assistant cashier, and Shirley Mikes, clerk. Directors of the bank include E. A. Ellison, H. S. Kers sen, Otto Koerth, G. A. Mattke, P. E. Morf and William McMeans. Takes Banking Course Herbert Ollenburg, cashier of the Hancock County National Bank of Garner, Iowa, has been in New Bruns wick, New Jersey, for a two weeks’ course at the Graduate School of Bank ing at Rutjers University. Each year 200 bankers from all over the United States are invited to take this course, which consists of two weeks school for three years, thus making an annual enrollment of 600. This is the second year that Mr. Ollen burg is attending. Deposits Up at Plainfield The Farmers State Bank of Plainfield reported a $130,000 growth in de posits during the year, at its regular stockholders’ meeting last month. It was also announced that nearly 65 per cent of the total bank deposits of $550,000 was invested in cash and government bonds during the year. The stockholders re-elected the same board of directors for another year: N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 19^3 60 —• IOWA Geo. M. Vosseller, W. S. Lynes, F. R. Boyd, E. C. Zwanziger, Geo. H. Wedeking and H. C. Stevens. Following the regular stockholders meeting, the board of directors met and elected Vosseller as president; Boyd as vice president; Stevens as cashier, and Ewald Remmers, assist ant cashier. A ccepts Position Dwight Prall, of Des Moines, has ac cepted the position of assistant cashier at the Hartford-Carlisle Savings Bank, Carlisle, Iowa. He is to fill the vacancy NEWS •- made by the resignation of Robert Penclry a few weeks ago. Bancroft Banker Dies Suddenly Leo M. Saunders, 45, cashier of the Farmers Trust and Savings Bank at Bancroft, Iowa, died suddenly from a K. C. Ruigh of Meservey, Iowa, has heart attack last month. Funeral been appointed by the board of direc services were held in St. John’s Cath tors of the First State Bank of Thorn olic Church in Bancroft and burial was ton, to be manager of the Meservey at St. John’s Cemetery. Carl Pearson office of the local financial institution. will fill the vacancy. Mr. Ruigh succeeds H. S. Aamoth, who resigned from that position recently, and has accepted a position in a bank Takes FBI Post at Allison, Iowa. A. E. Lindquist, Jr., has resigned his position with the Fort Dodge National Bank to accept an appointment with the Federal Bureau of Investigation. Mr. Lindquist has gone to Washing ton, D. C., where he will take the train ing course the FBI gives its agents and investigators. Change in Managers THE NATIONAL BANK OF WATERLOO New Bank at W aterloo ★ Plans are rapidly going forward for the official opening of the new People’s Savings Bank of Waterloo, Iowa, Sep tember 1st, according to George E. All bee, president of the newly incorpo rated bank. The new bank will oc cupy ground floor quarters in the Black Hawk Building. STATEMENT OF CONDITION A t th e c lo s e o f b u sitiess J u n e 30, 1943 ------------------------- ★ -------------------------R E SO U R C E S Cash and due fro m b a n k s_______________________$ L oan s and discou n ts_____________________________ U. S. Governm ent secu rities_____________________ State, County and m u nicipal secu rities__________ Other bonds ___________________________________ Stock in F ed eral Reserve B a n k __________________ O verdrafts ______________________________________ F urn itu re and fix tu re s__________________________ Accrued interest receivable_______________________ 4 ,9 2 6 ,1 6 6 .7 5 2 ,2 2 6 ,4 9 9 .9 3 5 ,0 4 3 ,3 5 2 .4 0 2 ,3 1 1 ,1 1 6 .6 9 1 9 4 ,6 7 5 .4 7 15 ,0 0 0 .0 0 4 6 6 .9 8 7 ,7 1 5 .1 5 4 2 ,0 8 0 .8 4 $ 1 4 ,7 6 7 ,0 7 4 .2 1 L IA B IL IT IE S C apital stock— com m on ________________________$ 2 5 0 ,0 0 0 .0 0 Su rplu s -----------------------------------------------------2 5 0 ,0 0 0 .0 0 Undivided profits ______________________________ 1 9 4 ,3 7 1 .9 4 Reserve fo r taxes, interest, etc.__________________ 8 6 ,0 3 5 .4 5 Interest collected but not e a rn e d _________________ 6 ,0 2 9 .9 6 D e p o s i t s ------------------------------------------------------ 1 3 ,9 8 0 ,6 3 6 .8 6 $ 1 4 ,7 6 7 ,0 7 4 .2 1 ★ OFFICERS J am es M. Gr a h a m ....... President Ch a s . S. M c K in s t r y ....Vice Pres. R. L. P en n e ...................... Cashier H. P. H offer ....A ssistant R. L. K ilgore .. ..Assistant A. J. B u rk ....... Assistant M e m b e r F ed era l R eserv e S ystem M e m b e r F e d e r a l D e p o s it In su ra n ce C o r p o r a tio n N o r th w e s te r n B a n k er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis J uly 1943 Cashier Cashier Cashier The complete list of officers and di rectors of the new bank in Waterloo include President George E. Allbee, branch office supervisor and public relations counsel for the Federal Dis count Corporation of Dubuque; vice president, J. Peter Olesen, Waterloo contractor and real estate man, and cashier, William A. Dewess, secretary and manager of the Waterloo Morris Plan Company. New directors, in addi tion to the bank’s officers, include Whitney Gillilland, member of the law firm of Swisher, Cohrt & Gilliland; Dr. A. A. Hoffmann, physician and sur geon; John H. Jensen, president, Fed eral Discount Corporation, Dubuque, Iowa; Roger C. Miller, secretary-treas urer and manager of the Crystal Ice & Fuel Company, and R. L. Stotesbery, vice president of the Federal Discount Corporation, Dubuque, Iowa. The Federal Discount Corporation, with which Messrs. Allbee, Jensen and Stoesbery are connected, is well known throughout the middle west, having its main office in Dubuque with branch offices throughout Iowa, Minnesota, Wisconsin and Illinois. The new People’s Savings Bank will have capital stock of $100,000, with $25,000 surplus and $10,000 undivided profits. OU may have read these words before. They have had wide circulation since their first appearance two months ago. In the belief that they are worth many readings, we respectfully reprint them here. Their message is particularly fitting for Y July, the month in which we observe the birthday-anniversary of American Liberty. ★ ★ ★ ★ ★ ★ ★ Q U E S T I O N FOR A M E R I C A N S Wliat did you do for Freedom today? A Marine on Guadalcanal, Through a hail of lead and jungle hell, Crept out to a wounded pal; And he dragged him hack through the slime and muck, Then, with never a thought of rest, Back over that deadly route he went And smashed a machine-gun nest. It wasn’t much fun— the bullets— the mud— He may have been scared, but he hid it; He only knew of a job to do And he didn’t quibble, he did it. What did you do for Freedom today? “All that you could.'” Think well— One-millionth as much as that Leatherneck did? — They buried the boy where he fell. What did you do for Freedom today? A Gob on a rubber raft Drained the last wet drop from his water flask Then threw it away and laughed. For eighteen days on an endless sea In a torment of pain he lay; Drenched and chilled to the bone at night, And burned to a crisp by day. He wanted to live, but he knew in his heart That the odds were a thousand to one; But he drifted and hoped, consoled by a prayer, And the thought of a job well done. What did you do for Freedom today? “All that you could,” you declare. But when you say it, remember the Gob Who died on the raft out there. What did you do for Freedom today? Nine lads in a B-17 Ran into a flock of Messerschmitts -k ★ ★ ★ And died in their wrecked machine. Oh, they didn’t do bad with what they had, But they flew through hell to do it; They had smashed Berlin and a dozen “ one-ten’s” But their number was up and they knew it. They were full of holes, with no controls, And their ship was a comet of flame; But they stuck to their guns and the useless stick And battled on just the same. What did you do for Freedom today? “All that you could.” O .K.; But if those nine boys in the B-17 Were to ask you, what would you say? What did you do for Freedom today? I think they’ve a right to ask. Y ou’re in this fight just as much as they, And with just as important a task. Were you at your desk, or bench, or press, And at work at the starting bell? Did every minute of this day count? And the job — did you do it well? Did you buy a Bond or a Stamp today? Or collect any scrap for the pile? Did you save your grease or throw it away? Did you drive just an extra mile? Have you been down to the Red Cross Bank And given a pint of your blood? Did you send that V-mail letter today? Did you hoard any rationed food? Before you begin to complain and gripe That life is all work and no fun— Would you trade your dinner for Ration K? Or your overtime pay for a gun? Just stop every once in a while today W hen your lot seems hard and lean, And think of a Gob, and a Leatherneck, And nine boys in a B-17. —R. L. NICHOLSON Reprinted from. THIS W E E K Magazine Copyright 1943 by the United Newspapers Magazine Corporation. BANKERS TRUST W COMPANY t t r des moines https://fraser.stlouisfed.org MEMBER FEDERAL Bank DEPOSIT CORPORATION Federal Reserve of St.INSURANCE Louis ★ ★ ★ 62 Tw enty-five Years Ago Names in Northwestern Banker News From the July, 1918, Issue the deposits of national banks. . . . HE following news items were pub lished in the N orthwestern B anker 25 years ago in the July, 1918, issue. Henry P. Turnbull is vice presi dent of the Hanover National Bank of New York. . . . Joseph Chapman is vice president of the Northwest ern National Bank of Minneapolis. He was born in Dubuque in 1871. . . . A bill has been introduced to guarantee T M. A. Traylor, president of the Live stock Exchange National Bank of Chi cago, said, “Let us awake to the full realization of what war financing means, and what our part in it is. Let us realize now that it is not so much the morale of the American army that our enemies fear as the morale of the American nation itself. Let us re AM ERICAN NATIO N AL BANK AND TRUST CO M PAN Y OF CHICAGO AT W A SH IN G TO N LA SALLE S T R E E T , ----- —------------------------- ¿¿Si as M em ber F ed era l D ep osit "Æji HjSC Insurance Corporation w STATEM EN T AT THE CLOSE OF OF CO N D ITIO N BUSINESS JUNE 3 0 . 10 43 R E S O U R C E S Cash and due from b a n k s ....................................... $ 36,503,702.27 United States Government obligations — direct and fully guaranteed............................................. Municipal and other marketable securities . 54,075,757.52 . 13,937,074.84 Loans and discounts.................................................. 23,493,496.64 Federal Reserve Bank s t o c k .................................. 123,000.00 Customers’ liability on acceptances....................... 14,400.00 Accrued interest r e c e iv a b le .................................. 293,465.84 Real estate o w n e d .................................................. 1-00 Other a s s e t s ............................ 75,865.42 $128,516,763.53 L I A B I L I T I ES Capita] stock — preferred....................................... $ 600,000.00 Capital stock — c o m m o n ....................................... 1,000,000.00 Surplus......................................................................... 2,500,000.00 Undivided p r o f i t s .................................................. 626,757.21 Preferred stock retirement f u n d ............................ 300,000.00 Reserve for taxes, interest, contingencies, etc. 955,619.74 . Unearned d isc o u n t.................................................. Liability on acceptances . . . . . . . 304,957.50 . 14,400.00 Deposits: D e m a n d .................................... $108,707,558.85 United States Government . 6,093,516.82 Other public funds . . . . 4,772.30 S a v i n g s .................................. 7,379,181.11 Other time deposits . . . 30,000.00 122,215,029.08 $128,516,763.53 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 19^3 member that while the Russian army was in the field, honeycombed with treason, officered and directed by traitors, as it was, it neverthless achieved some splendid victories, fill ing Russian prisons with hundreds of thousands of enemy soldiers so long as Russia itself supported the war, and it was not until the morale, never too strong, of the Russian na tion gave way that its armies sur rendered, and peace and ruin fell up on that hapless land.” . . . John A. Cavanagli, vice president of the Des Moines National Bank, said, “ Social ism attacks every principle of sound finance. In opposing it I am not en deavoring to rouse any class preju dice whatever.” . . . Milo Gibbs, cash ier of the Bank of Northwestern Iowa at Alton, has many friends who are backing his candidacy for president of the Iowa Bankers Association. . . . H. C. Nicholson, cashier of the Pack ers National Bank of Omaha, reports a fine increase in deposits for their institution, and which deposits are now $4,728,000. . . . Lewis G. Harriman was appointed assistant trust officer of the Guaranty Trust Company of New York. . . . The Bankers Trust Com pany of New York has voted to make a substantial cash payment to em ployes to assist in meeting increased living costs. . . . The Mechanics and Metals National Bank of New York has prepared a booklet telling the pur pose and advantages of “Trade and Bank Acceptances.” . . . W . C. Cum mings, president of the Drovers Na tional Bank of Chicago, attended his first Iowa state convention at Du buque. . . . Merrill Tilden, George Mal colm and C. T. Simmons also repre sented the Drovers National at the convention. . . . Charles E. Mitchell, president of the National City Com pany of New York, in announcing a “ Special Bank Investment Service,” had this to say, “Our commercial pur pose is, frankly, to buy and sell se curities at a profit, but we recognize that we have no claim to the invest ment business of any bank except as the service rendered by us is not only efficient and intelligent but unusual in its features.” . . . The Home State Bank of Dunning, Nebraska, has taken over the interests of the Dunning State Bank— The Plateau State Bank of Her man, Nebraska, has increased its cap ital from $30,000 to $50,000. . . . W . S. Weston, president of the First Na tional Bank of Hartington, Nebraska, has resigned in order to become vice president of the Peters Trust Company of Omaha. . . . C. D. Griffiths, presi dent and 4V. W . Smith, vice president of the State Bank of Wheaton, Minne sota, have sold their interests to a 63 • stock company of 52 local parties. The State Bank is the oldest incorporated bank in Traverse County. . . . Albert Robb has accepted a position in the Miners National Bank of Eveleth, Minnesota. . . . The Stockman’s State Bank has been organized in Browning, Montana, with a capital of $50,000. . . . G. F. Burla, president of the First Na tional Bank of Hardin, Montana, has sold his interest in the bank. . . . The two banks of Corona, South Dakota, The Roberts County State Bank and the Corona State Bank, have consoli dated. The deposits of the consoli dated bank will be $150,000. . . . AV. R. Montgomery, president of the Bank of Winner, South Dakota, announces an increase in the bank’s capital to $50,000. . . . George H. Johnston, cashier of the Citizens State Bank of Wales, North Dakota, has been elected presi dent of the Northeastern District of the North Dakota Bankers Associa tion. . . . E. C. Olson was elected cash ier of the First National Bank of Leeds, North Dakota. Directors Meeting A t Arlington Ensign F. E. Breckner left for Chi cago recently to report at the Navy Market office. Upon the completion of his duties there he will report to the Navy Supply Corps at Harvard Uni versity. Ensign Breckner has been associated with the American National Bank of Arlington, Iowa, for the last year. At a meeting of the board of directors, Charles F. Eckheart was elected presi dent, to fill the vacancy caused by the death of the late T. J. Ainsworth and Dr. O. C. Miehe was made vice presi dent. Mrs. Vincent Luce, assistant cashier, will be in charge of the bank for the duration, or until Ensign Breckner re turns, when he will again resume his duties as cashier. H. R. Young, Wichita Falls, Texas, former cashier of the bank, was pres ent at the board of directors meeting. IOWA NEWS • tion of cashier and William Degan, formerly of Ayrshire, teller in the bank for the past year, was named manager of the Mallard branch of the bank. W. H. Benton was re-elected presi dent and Sevart Swanson of Ayrshire was named assistant cashier and man ager of the Ayrshire office. Buys Interest in Le Mars Bank H. J. Harms of Brunsville recently purchased a major interest in the Le Mars Savings Bank by acquiring the stock of M. Kass, Joe M. Kass and others. Mr. Harms is the new presi dent of the bank. Mr. Harms also has banks at Bruns ville and Merrill. First Annual Meeting The first annual stockholders meet ing of the Benton County Bank & Trust Company was held in Vinton, Iowa, recently. All old officers were re elected. Ivan Trottnow, REA head, was elected a new director. The bank first opened for business on June 6, 1942. It has a capital of $50,000. As- A Greater Food Center Because of the greater volume of food and live stock passing through the Sioux City market, more and more banks in Iowa, Nebraska, Minnesota, and South Dakota are finding a Sioux City correspondent connection valuable. Our officers are experienced both in livestock farming and general bank business. We invite your correspondent account here in Sioux City. A. G. Sam, President J. P. Hainer, Vice President J. R. Graning, Assistant Cashier Fritz Pritzson, Vice Pres, and Cashier E. A. Johnson, Assistant Cashier J. T. Grant, Assistant Cashier W. F. Cook, Auditor Member Federal Deposit' Insurance Corporation Changes Made at Emmetsburg At the annual meeting of the stock holders of the Central Savings Bank and Trust Company of Emmetsburg, Iowa, several changes were made in the status of officers. William Zunkel, vice president and cashier since the bank was purchased by its present owners in April, 1941, was advanced to the position of execu tive vice president. Paul Shain was promoted to the posi NATIONAL BANK o c C o ly ju m Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 1943 64 // Know Your Money Exhibit in Omaha sets now total more than $900,000. Lloyd Bock is cashier of the year-old bank and Alfred Happel assistant cash ier. Resigns as Cashier Raymond J. Meyers, for 22 years connected with the Boone State Bank & Trust Company, Boone, Iowa, closed his connection with that banking house recently. He had been the bank’s cash ier since 1933. Trip to W est Co ast Mr. and Mrs. D. R. Wessling of Des Moines made a trip to the west coast this month to attend the wedding of their daughter, Lois, to Lieutenant Arthur A. Henrikson, with the Medi cal Administrative Corps, attached to the Army Air Forces at Walla Walla, Washington. The date of the wedding was July 3rd. The Wesslings also attended their daughter’s graduation last month at Northwestern Univer sity. Mr. Wessling is president of Wessling Services and is well known as a member of the Financial Adver tisers Association. Correction The attention of our readers is called to an error appearing in the deposit figures of the First State Savings Bank of McGregor, Iowa, as published in the 1943 Edition of the Iowa-Nebraska Bank Directory. The deposits of the bank are published at $52,938, whereas the deposits of the bank on December 31, 1942, the statement from which all Directory figures are obtained, were $582,938. Please note this latter figure is the correct one. •■ ■s À Big Gain in Deposits Through the efforts of the First National Bank of Omaha, the Bureau of En graving last month brought to that city an exhibit showing how money is manu factured by our government, and imparted information which the public should have to be able to detect counterfeit coins and paper money. The picture above was taken at the Omaha exhibit. Mr. Batch and Miss Wilson of the Bureau of Engraving in Washington, D. C., stand by while John Lauritzen of the First National Bank of Omaha fingers the crank with which a one-quarter turn will print $25 worth of Defense Stamps. Many broadcasts were made from the floor of the exhibit, hence the microphone. S carborough ^ C The College Savings Bank of Ames, Iowa, organized in 1916 with a capital of $25,000, now has a capital account of $100,000. Dividends have been paid at the rate of $10 per share on the original 250 shares each year since 1927, when the present management took over. C. A. Knudson is president of the bank. Deposits have increased from $91,000 in 1916 to $2,500,000 as of May 31, 1942. o m pa n y C c H in à e lc 'ïà First National Bank Building, Chicago Northwestern Banker July 1943 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Horace A . Smith, Iowa Representative Des Moines, Iowa 65 —• I O W A Garwin W. N. Townsend, president of the Farmers Savings Bank of Garwin, Iowa, is slowly improving from a heart ailment. E. N. Christensen, cashier of the bank, reports a large increase in business in that community. The Farmers Savings Bank has employed Mary Evelyn Rider as bookkeeper in that institution. Veteran Banker Dies M. C. Remington, vice president of The Home State Bank of Royal, Iowa, passed away recently at the age of 73. O. T. Bailey has been elected vice pres ident to fill the vacancy caused by Mr. Remington’s death and E. H. Kruse has taken his place on the board of directors. NEWS •- Mr. Kremer, who is well known to his many Iowa banker friends, is near ing the age of seventy-two. He was formerly president of the Dyersville National Bank, but sold his interests therein to Leo Wegman two years ago. Former Banker Dies Henry N. Halvorson, 72, of Clear Lake, Iowa, died suddenly, at a hos pital in Rochester, Minnesota, last month following a major operation. Mr. Halvorson entered the Clear Lake State Bank as cashier in 1917 and three years later was elected its presi dent, continuing in that capacity until 1925 when the bank was consolidated with the Frst National Bank. Mr. Hal vorson continued as president of the combined organization for a number of years. Later he entered the field of insur ance and at the time of his death rep resented a number of companies. He was also justice of the peace and sec retary of the Clear Lake Federal Sav- m Live Stock ' N ational Bank * Bank Head Passes Six hundred people paid their re spects recently to W. H. Brandt, presi dent of Tri-County State Bank of Zearing, Iowa, who passed on last month at Rochester, Minnesota. Mr. Brandt was very active in public life and at the time of his death was county chair man of the Hardin County Soil Con servation Program. Scholarship Award William Howard, teller at the IowaDes Moines National Bank and Trust Company, has been given the schol arship award made annually by the Des Moines chapter of the American Institute of Banking to the person re ceiving the highest grades in the chap ter’s banking classes. Howard will get a trip to the next convention of the A. I. B. with all expenses paid. Officers of the Des Moines chapter have been re-elected for the coming year. They are: James R. Brown, Iowa-Des Moines, president; S. G. Barnard, Bankers Trust, first vice president; Arnold Dressier, Central National, second vice president and treasurer; and Eldred McIntosh, IowaDes Moines, secretary. ---------------------------------- c f l U N I O N S T O C K YARDS STATEMENT • T E LE P H O N E YA RD S 1 2 2 0 OF CONDITION June 30, 1943 RESOURCES Cash and due from banks........................................ $ 1 4 ,7 4 3 ,7 2 1.53 U. S. Treasury bills and certificates..................... 1 6 ,2 0 3 ,9 4 2 .7 5 U. S. Government bonds and notes..................... 5 ,9 1 6 ,3 0 0 .0 0 State and municipal securities................................ 9 1 9 ,1 2 3.40 Other marketable bonds........................................... 7 9 8 ,6 3 3 .6 4 Loans and discounts................................................... 5 ,4 4 6 ,5 39-89 Federal Reserve Bank stock..................................... 7 5 ,0 0 0 .0 0 Bank building................................................................ 4 0 0 ,0 0 0 .0 0 Interest earned, not collected................................. 8 5 ,4 6 5 .2 3 Current receivables and other assets................... 3 5 ,5 1 3 .6 6 $ 4 4 ,6 2 4 ,2 4 0 .1 0 LIABILITIES Capital...............................................................................$ 1 ,0 0 0 ,0 0 0 .0 0 Surplus............................................................................... 1 ,5 0 0 ,0 0 0 .0 0 Undivided profits and reserves.............................. 1 3 8 ,2 8 7 .2 5 Unearned discount...................................................... 2 6 ,6 5 4 .0 8 Liability under letters o f cred it........................... 2 ,2 0 0 .0 0 Deposits............................................................................ 4 1 ,9 5 7 ,0 9 8 .7 7 $ 4 4 ,6 2 4 ,2 4 0 .1 0 BOARD Fr R Henry F. Kremer Recuperating Word comes from Henry F. Kremer, veteran banker of Dyersville, Iowa, that he is now back at his desk, parttime duty, in his insurance agency, following several weeks of illness ear lier this year. He underwent a major operation in a Dubuque hospital in March, spent three weeks there, then three weeks in Dubuque Sanitarium, and then returned to Dyersville to recuperate. --------------------------------- e d e r ic k o b e r t u j H . P . D OF DIRECTORS A r in c e G . Le o n a r d u n h a m Investments W I L L I A M J. O ’ C O N N O R * D ri Ass’t General Manager, Union S(ock y w & lra n s it Co< tt . KICH ARD H ACKETT General M anager, Central Manufacturing District _ O r t h u r President, Union Stock Y a rd & Transit Co. r v is _ „ T . H RALPH M . SHAW Winston, Strawn & Shaw e n k l e Vice-President and G eneral Manager, Union Stock Y a rd & Transit Co. D a v id T H O M A S E. W I L S O N Chairman o f the Board, Wilson & Co., Inc. H . R e im e r s President, The L ive Stock National Bank o f Chicago SERVING AGRICULTURE AND INDUSTRY & vnce 4868 M E M B E R F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 1943 66 • IOWA ings and Loan Association, now in its eighth year. Mr. Halvorson had been one of Clear Lake’s leading business men for many years. Bank Changes Leonard H. Klinefelter, assistant cashier, has resigned his position at the Farmers Savings Bank, Grundy Cen ter, to go into a defense job at Water loo. Leonard was one of the topnotchers in the State Junior Bankers adding machine contest the last time one was held at Des Moines state con vention. NEWS Miss Hildegarde Meinert has been given a place in the bank to help fill the vacancy. Miss Meinert is a local girl and a graduate of A. I. B. at Des Moines. Chapman to Head C .F .A . J. L. Chapman, assistant trust officer of the City National Bank and Trust Company, has been nominated for president of the Chicago Financial Ad vertisers for the year 1943-44, to suc ceed Paul P. Pullen, new business officer of the Chicago Title and Trust Company. THE N O R T H E R N TRU ST C O M P A N Y Statement o f Condition, June 30, 1943 RESOURCES L o a n s a n d D is c o u n ts..................................................... .$ 31,840,558.71 U . S. G o v ern m e n t S e c u r it ie s...................................... . 279,243,246.19 O th er B o n d s a n d S e c u r it ie s ......................................... . 98,812,692.09 F ed eral R eserve B a n k S t o c k ........................................ 270,000.00 B a n k P r e m ise s.................................................................... 1,400,000.00 C u sto m e r s’ L ia b ility , A cco u n t L e tte r s o f C red it a n d A c c e p ta n c e s............................................................ 322,710.11 O th er R e so u rc e s................................................................ 537,608.00 C ash a n d D u e fro m B a n k s ........................................... . 115,812,491.34 T O T A L ................................................................................. $528,239,306.44 LIA BILITIES C a p ita l S t o c k ...................................................................... .$ 3,000,000.00 S u r p lu s F u n d .................................................................... 6,000,000.00 U n d iv id ed P r o fits.............................................................. 5,857,104.57 R eserve fo r T axes, In te r e st, e t c .................................. 12,466,045.22 D ividen d P a y a b le J u ly 1, 1943.................................... 135,000.00 L e tte rs o f C red it a n d A cce p tan c es O u tsta n d in g . 331,547.48 O th er L ia b ilit ie s ................................................................ 105,009.78 D e p o sits: D e m a n d ............................................. $366,514,598.08 T im e ................................................... 81,604,860.85 U. S . G o v e rn m e n t........................ 52,225,140.46 United States Government securities carried in the above statement at $59,392,862.57 are pledged to secure public and other monies, as required by law; and United States Government and other securities carried at $550,945.75 are deposited with the State Authorities under the Trust Act. M em ber Federal D eposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 19^3 W A R B O N D S Other nominations were as follows: vice president, E. T. Kurzdorfer, assist ant vice president, Uptown National Bank; treasurer, Fred W. Mathison, assistant vice president, National Se curity Bank; secretary, Miss Ruth Brannan, representative, Bozell and Jacobs; directors, David Dillman, In vestment Bankers’ Association; J. K. Waibel, advertising manager, Conti nental Illinois National Bank and Trust Company; Paul P. Pullen, new business officer, Chicago Title and Trust Company. Other directors whose term does not expire are: Don W. Laing, assistant secretary, Northern Trust Company, and Marvin Brown, representative, Rodney E. Boone Asso ciates. Chester L. Price, advertising and publicity manager of the City National Bank and Trust Company, is chairman of the nominating commit tee. Shapleigh Honored A dinner in honor of Alfred Lee Shapleigh, one of the original founders and a director since organization of American Credit Indemnity Company of New York in 1893, was given re cently by directors of that company at Baltimore, where the executive offices of the company are located. Commemorating his long service with the carrier as a director and vicepresident, Mr. Shapleigh was pre sented with a beautiful wrist watch on which was engraved the occasion and expression of esteem by other directors and officers. Prominent businessmen and insur ance executives, guests at the dinner, included: R. Howard Bland, chairman of board, U. S. F. and G.; E. Asbury Davis, p re s id e n t, U. S. F. and G.; Stewart McDonald, chairman of board, Maryland Casualty Company; Charles H. Roloson, Jr., president Central In surance Company; Voris Lyons, Penn sylvania Casualty Company; W. Stan ley Kite, president, Manufacturers Casualty Insurance Company; A. E. Benson, vice-president, Manufacturers Casualty Insurance Company. Toastmaster was J. F. McFadden, president of the American Credit In demnity Company. 500,344,599.39 T O T A L ................................................................................... . $528,239,306.44 B U Y • On Faculty William G. F. Price, vice president, American National Bank and Trust Company of Chicago, was a member of the faculty of the graduate school of banking at the ninth resident session at Rutgers University, New Bruns wick, New Jersey, from June 14th to 26th. Kenneth R. Wells, assistant cash- 67 . ier, attended his second resident ses sion while Allen P. Stults, assistant cashier, and Robert Lindquist, adver tising and public relations officer, be gan the three-year course. Mr. Price was a member of the com mercial banking faculty group of the school for bank officers. The school is conducted by the American Bankers Association. Declare Dividend The board of directors of the Chem ical Bank & Trust Company have de clared the regular quarterly dividend of 45 cents per share on the capital stock of the bank, payable July 1, 1943, to stockholders of record June 15, 1943. N EW S A N D VIEW S O F THE B A N K IN G W O R LD (Continued from page 57) “The mid-year statement shows a de posit volume substantially larger than any bank has ever published in this territory. The rapidity of the increase brought many problems which were accentuated by the fact that during this period twelve of our young men joined the armed forces of the United States. With one exception, their IOWA NEWS . places, as well as new positions created by war activities, were taken by wom en. We are proud of the way these new employes have taken over their responsibilities.” We have been reading Bert Johns ton’s book “One Nation For Sale’’ and it is a most interesting volume. It points out how labor must sell its good points to capital and capital must sell its good points to labor, and the two of them must sell their combined services to the public. The book covers more points than these but this is an excellent book on the modern selling approach which should be applied to our national prob lems. If you haven’t read the book, we can recommend it to you most highly. Eric A. Johnston, president of the National Chamber of Commerce, in a recent speech said: “ The only good news the Axis is getting is the bad news from the United States home front.” One of the statistical organizations ..til j| l nnm ir i i R I 1 « 1 Ifn ll 1 1 II11i1fl Afil 11HJuJ il OTTUMWA, IOWA Member of Federal Reserve System Statement of Condition as of June 30, 1943 R ESOURCES Loans and Discounts.........................................................................$ 1,901,074.89 Bank Building ...................................................................................... 102,500.00 Furniture and Fixtures andSafety Deposit Vaults.................. 23,071.76 Other Real Estate................................................................................ 7,000.00 Stock in Federal Reserve Bank......................................................... 18,000.00 Overdrafts ............................................................................................. 3,740.50 U. S. Bonds................................................................. $3,857,602.89 Municipal Bonds ................................................... 2,012,860.32 Other Marketable Bonds...................................... 980,208.74 Cash and Exchange.............................................................................. 3,235,944.8310,086,616.78 $12,142,003.93 L IA B IL IT IE S Capital (Com m on)................................................................................$ 300,000.00 Surplus .................................................... 300,000.00 Undivided Profits and Reserve......................................................... Dividend Payable July 1, 1943....................................................... Deposits ................................................................................................. 56,704.54 15,000.00 11,470,299.39 $12,142,003.93 T h i s s u m m e r , w h e n th e m e r c u r y sta n d s at 1 00 p lu s in t h e s h a d e , w i t h n o sh a d e , ta k e Frank a n o th e r D rovers th in k lo o k C o v ert, N a t io n a l h o iv n i c e at th is a ssista n t it Bank, m u st p ic t u r e c a s h ie r of C h ica g o , be s p o t that F r a n k is e n j o y i n g . in of th e and th e c o o l T h e p ic t u r e OFFICERS FRANK VON SCHRADER, Chairman of Board and President H. L. POLLARD, Vice President W. C. MILLER, Assistant Cashier R. W. FUNK, Vice President FRED DIMMITT, Assistant Cashier MAX VON SCHRADER, Cashier FRANK M. POLLARD, Asst. Cashier C. P. GLENN, Assistant Cashier C. G. MERRILL, Trust Officer w a s ta k e n s o m e t i m e a g o a lo n g th e s h o r e of Lake S u p e r io r , w h en Frank and a n u m b e r o f h is f r i e n d s m a d e re g u la r o u t M em b er F ed era l D e p o sit Insu rance C orporation in g tr ip s t o a c a b in l o c a t e d t h e r e . Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 1943 68 • I O W A N E W S First Trust and Savings Bank CEDAR RAPIDS, IOWA Statement of Condition At Close of Business June 30, 1943 R E S O U R C E S Loans and L IA B IL IT IE S D i s c o u n t s ...................................... $ 5 9 0 ,4 0 6 .7 0 State, C o u n ty , M u n ic ip a l a n d o t h e r b o n d s .......................................... 3 6 8 ,3 4 6 .9 0 O v e r d r a f t s ................................................................. 2 9 6 .6 9 B a n k i n g H o u s e a n d F i x t u r e s ................ E l y O ff ic e B a n k i n g H o u s e 4 4 ,2 0 0 .0 0 a n d F i x t u r e s .................................................. U . S . G o v e r n m e n t S e c u r i t i e s ............... C ash on h a n d and du e fro m b a n k s . 1 .0 0 8 6 6,5 2 1 .0 3 5 3 2 ,4 1 4 .2 0 C ap ita l Stock ( C o m m o n ) ....................... $ 4 0 ,0 0 0 .0 0 Reserve 5 0 ,0 0 0 .0 0 Other f o r C o n t i n g e n c i e s ........................... Reserves P rofits and ............................................................... UnearnedD isco u n t Deposits 1 4 ,1 9 1 .0 1 ............................................ 2 ,9 2 8 .4 1 ............................................................... 2 ,1 9 5 ,0 6 7 .1 0 $ 2 ,4 0 2 ,1 8 6 .5 2 L. W. Stritesky, Assistant Cashier and Trust Officer Frank J. Stastny, Assistant Cashier and Assistant Trust Officer MEMBER FEDERAL DEPOSIT INSURANCE OORP. NATIONAL BANK OF BURLINGTON BU R L IN G TO N , IO W A Statement of Condition as of June 30, 1943. A S S E TS Cash U. S. and Due G overnm ent L IA B IL IT IE S B a n k s ................ $ 2 ,0 9 9 ,0 6 9 .0 0 S e c u ritie s . . . . 2 ,7 7 8 ,3 4 6 .8 2 from State. C o u n tv and O ther ..................................................... 3 6 5 ,8 0 0 .5 7 D i s c o u n t s ............................... 1 ,1 0 1 ,0 4 5 .1 8 Loans Bonds and M unicipal Bonds Bank 1 4 2 .6 4 Fu rn itu re Other . . 9 ,0 0 0 .0 0 .............................................. 4 2 ,5 4 3 .0 0 F i x t u r e s ........................... 9 ,1 9 3 .8 6 Federal Reserve B a n k . B u ild in g and A ssets Stock ..................................................... $ S u r p l u s ......................................................................... 2 0 0,0 0 0 .0 0 1 0 0 .0 0 0 .0 0 9 8 2,1 5 5 .2 9 O v e r d r a f t s ............................................................. S t o c k in C a p ita l U n d iv id e d P rofits Reserve for Interest C olle cte d Deposits Taxes, .......................................... 6 3 ,5 3 2 .2 7 e t c .................................. 2 0 ,0 0 0 .0 0 Earned 3 ,1 3 2 .7 7 .................................................................... but Not 7 ,0 0 3 ,0 8 7 .0 3 2 ,4 5 5 .7 1 .................................................. $ 7 ,3 8 9 ,7 5 2 .0 7 $ 7 ,3 8 9 .7 5 2 .0 7 Thomas L. Dyer, Cashier. F. J. Norton, E. L. Hausknecht, Asst. Cashiers. John H. Witte. Jr.. President. Vincent P. Cullen, Executive Vice President. THE MONTICELLO STATE BANK MONTICELLO, IOWA Statement o f Condition at the Close of Business, June 30, 1943 A S S E TS Cash and Due from L IA B IL IT IE S B a n k s ..................... $ 1 , 2 7 7 , 6 0 3 . 6 2 Bonds O ther Bonds Loans and O verdrafts Stock in B a nk in g 3 4 1 ,7 7 4 .3 9 .. 5 2 ,5 4 1 .3 8 4 ,0 5 3 7 9 6 .2 6 D i s c o u n t s .................................. 2 ,2 8 8 ,0 4 5 .8 3 ............................................................. 2 8 2 .0 2 Federal House Reserve Deposits Demand U n it e d States Bonds ............... $ 3 , 6 5 9 , 4 8 0 . 4 9 M u n icip a l Tim e Bank. .................................................. 2 5 ,0 0 0 .0 0 . .$ 3 ,1 6 2 ,0 6 6 .5 9 Deposits 3 ,4 4 4 ,9 8 7 .4 8 U n ite d States W a r Loan Accou nt 3 8 3 ,0 3 3 .6 1 C a p ita l S tock— Preferred . . . 2 8 5 ,0 0 0 .0 0 Common . . . . 1 1 5 ,0 0 0 .0 0 A. Frank C a ria n o , E. V ice M em ber Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of H. P re s id e n t. Member the of th e Federal July 1943 0 0 0 .0 0 1 1 0 ,0 0 0 .0 0 1 2 ,5 1 9 .2 0 W . S tu h le r, Halstead Federal D e p osit Reserve M. Vice System Insurance P re s id e n t. C arpenter, C orporation Semiannual Dividend The board of directors of the City National Bank and Trust Company of Chicago, at their regular meeting June 29th, continued their policy of declar ing a semiannual dividend of $2.00 per share, of which $1.00 will be paid on August 2, 1943, to stockholders of rec ord as of July 20, 1943, and $1.00 on November 1, 1943, to stockholders of record, October 20, 1943. New Vice President W. L. Hemingway, president of the Mercantile-Commerce Bank and Trust Company, St. Louis, Missouri, has an nounced the election of Kenton R. Cravens, vice president of the Cleve land Trust Company, Cleveland, Ohio, as a vice president of Mercantile-Com merce. Mr. Cravens will be associated with the Commercial Banking Depart ment and takes up his new position July 1st. In 1941 Cravens was selected by the Federal Reserve Board to administer Regulation “W ” , which controlled and regulated installment loans. Follow ing this appointment he returned to the Cleveland Trust Company, and in 1942 was again selected to represent the Federal Reserve Board in the guaranteeing of loans by the govern ment under Regulation “V” by which the Federal Reserve Banks guaranteed certain bank loans to industry. Declares Dividends The board of directors of Manufac turers Trust Company, New York, "de clared the regular quarterly dividend of 50 cents per share on the common stock, payable on July 1, 1943, to stock holders of record on June 15, 1943. The board also declared the regular quarterly dividend of 50 cents per share on the preferred stock, payable July 15, 1943, to stockholders of record on June 30, 1943. 1 4 7 ,1 2 0 .8 5 $ 7 ,6 5 9 ,7 2 7 .7 3 P re s id e n t. Stim son, 400 ..................................................................... $ 7 ,6 5 9 ,7 2 7 .7 3 R. $ 6 ,9 9 0 ,0 8 7 .6 8 Surplus ......................................................................... .1 5 , 0 0 0 . 0 0 U n d i v i d e d P r o f i t s ............................................... Reserves recently compiled data covering the National City Bank of New York and its figures for loans and discounts, taken at the end of each year from 1938 to 1942, showed the following in teresting figures: 1942 ........................... $573,450,839 1941 618,810,573 1940 ............................ 544,312,305 1939 ............................ 530,725,122 1938 ............................ 521,981,489 U n d iv id e d $ 2 ,4 0 2 ,1 8 6 .5 2 F. S. Mitvalsky, President Dr. John 0. Petrovitsky, Vice President Frank J. Dvorak, Cashier 1 0 0 ,0 0 0 .0 0 S u r p l u s ......................................................................... • Cashier. Portrait on Display Rarely if ever has a large big-city bank had an opportunity to act as art gallery in displaying for the first time the latest work of an internationally 69 • IOWA known artist, but the role fell to the American National Bank and Trust Compare of Chicago when a portrait of Lincoln by Tino Costa was ex hibited in its principal display win dow. Costa is a Frenchman living in Hollywood and is way up in the front ranks of leading portrait painters of the world. He has painted the Kings of Denmark, Sweden and Greece, the Duchess of Kent, Sir Basil Zaharoff, ex-President Hoover, General MacArthur, Marshall Foch and scores of others of the world’s great. But to Costa that sort of work left something to be desired as far as his own personal satisfaction was con cerned. He felt he would prefer to have his work remembered by some thing of more universal appeal. As Abraham Lincoln has always greatly appealed to Europeans — probably more so than almost any other Amer ican—it was only natural that Costa might hit upon Lincoln as the type of subject he had in mind. W ar Finance Committee The Treasury Department has an nounced the unification of all future NEWS • government bond sales efforts in a single unit to be known in each local ity as the War Finance Committee. This committee will consolidate the staffs of the former War Savings Staff and the Victory Fund Committee. Headquarters of the Iowa War Fi nance Committee will be at 800 Wal nut Building, Des Moines. No an nouncement has yet been made as to the organizational set-up. The volunteer personnel of both former units will unite their efforts for all phases of the work, with specific phases such as payroll allotment, spe cial events and publicity and war loan drives being assigned to groups within the organization best qualified for that particular phase. The Secretary, Mr. Morgenthau, has announced that the national goal for the last six months of 1943 will be the sale of $18,000,000,000 to individuals, the greatest stress being placed on the endeavor to guide the large percent age or surplus current income from all sources into the purchase of Bonds. This will require the most effective and continuous work on the part of all to achieve this stupendous goal, but it is a goal which every businessman, banker, farmer and wage earner can wholeheartedly endorse as one of the most effective ways to fight off the threat of inflation. Bank of America Reflecting the prosperity of Cali fornia under war conditions, the state ment of condition of Bank of America as of June 30, 1943, reveals that re sources of the bank have passed the $3,000,000,000 milestone. Total resources were $3,127,637,000, a gain of $984,435,000 over a year ago. Deposits attained the historic peak of $2,937,266,000, an increase of $978,835,000 over a year ago and an increase of $351,125,000 since December 31, 1942. Loans and discounts outstanding, which aggregated $777,652,000, de creased $62,817,000, while investments and securities, amounting to $1,707,431,000, increased $441,681,000 over De cember 31, 1942. This increase was almost entirely in United States Gov ernment securities, bringing the bank’s total investment in such securities to $1,470,535,000. Earnings for the half year, after op- FOOD-FOR-VICTORY A tremendous flow o f transactions, based on pigs, passes across the Drovers counters daily. And Drovers Service multiplies itself many times as pork products speed along the channels o f distribution in the Food-For-Victory program. A L O G IC A L C H O I C E . I f your customers ship livestock to the Chicago market, then the Drovers National Bank is a logical choice as your Correspondent. T H E Y ’LL S O O N BE O N THE IR W A Y to keep a rendezvous with destiny. When your customers ship to the Chicago market, instruct the commission firm here to transmit the proceeds through the Drovers—for fast service. DROVERS NATIONAL RANK DROVERS TRUST & SAVINGS RANK MEMBERS, FEDERAL DEPOSIT INSURANCE CORPORATION M A K I N G PIGS o f themselves. G ood feeding is serious business these days when every pound o f pork that can be produced is urgently needed in the Food-For-Victory program. Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 70 • IOWA erating expenses and accruals for tax es, were $14,278,000. From this total, $2,637,000 was reserved for deprecia tion of bank premises and amortiza tion of Bond premiums and $2,181,000 was set up in reserves and applied to the absorption of losses and the reval uation of assets. After payment of $5,207,000 in dividends at the annual rate of $2.40 per share on the common stock and $2 per share on the preferred stock, and after profit-sharing bonus to employes, capital funds were in creased from earnings for the six months period by $3,856,000. This, with the dividend, is equal to an an nual rate of approximately $4.33 per share on the common stock. Following the policy previously es tablished, one-half of the net increase in undivided profits for the period was NEWS • transferred to unallocated reserve for war contingencies. Capital funds, including reserves, now total $161,525,000, which is an in crease of $1,123,000 for the half year ended June 30, 1943, after the utiliza tion of $2,733,200 to retire 54,664 shares of preferred stock during the period. Chase National Bank The statement of the Chase National Bank for June 30, 1943, was made pubJuly 2nd. The deposits of the bank on that date were $4,193,352,000, which compares with $4,203,291,000 on March 31, 1943, and $3,595,451,000 on June 30, 1942. Total resources amounted to $4,482,606,000 compared with $4,482,656,000 on March 31st and $3,869,464,000 a year Farmers State Savings Bank INDEPENDENCE, IOWA Statement of Condition June 30, 1943 Resources C a s h a n d D u e f r o m B a n k s ................................................................ $1 0 3 7 7 9 4 1 4 Loans and D iscounts ................................................................................................................................. ! ! ! 'B B e ’, 0 6 0 .2 7 F i r s t R e a l E s t a t e m o r t g a g e s ........................................................................................................................................................................... 3 9 6 5 2 5 .1 6 U . S . G o v e r n m e n t B o n d s ........................................................................................... ... ' 1 4 1 4 -8 1 8 7 6 (M u n icip a l S e c u r i t i e s .................................................................................................................. ...................................... 1 83 731 99 O t h e r M a r k e t a b l e S e c u r i t i e s ................................................................................ 24 475 00 F u rn itu re and F i x t u r e s ................................................................. 3 406 68 O v e r d r a f t s ............................................................................................................................................................... L . . C ! C . . . ! . 1 ; 3 3 5 ‘. 0 6 . . $ 3 ,6 2 8 ,1 4 7 .0 6 Liabilities C ap ita l S tock ( C o m m o n ) .................................................................................................................................................... ?1 ul\RlYs ................................................................................................ U n d i v i d e d P r o f i t s ..................................................................................................................................................................................................... D e p o s i t s .............................................................................................................................................................................. . . . . . . \. I . . . . . $ 100 000 00 50,000.00 6 8 ,8 7 2 .9 5 3 ,4 0 9 ^2 7 4 4 1 $ 3 ,6 2 8 ,1 4 7 .0 6 E. F. SORG, President E. E. EVERETT, Vice President C. L. FIESTER, Cashier P. E. SORG, Asst. Cashier Member Federal Deposit Insurance Corporation 22 Years of C ontinu ou s Service C ITIZ E N S SAVINGS BANK, Anamosa, Iowa ago. Cash in the bank’s vaults and on deposit with the Federal Reserve Bank and other banks, $943,768,000 compared with $1,025,488,000 and $1,137,399,000 on the respective dates. Investments in United States government securi ties, $2,548,664,000 compared with $2,403,236,000 and $1,573,405,000. Loans and discounts, $717,909,000 compared with $727,477,000 and $822,753,000. On June 30, 1943, the capital of the bank was $100,270,000 and the sur plus, $100,270,000, both amounts un changed. The undivided profits on June 30, 1943, after deducting $5,180,000 from that account for a semiannual divi dend payable August 2nd, amounted to $49,842,000 compared with $49,353,000 on March 31, 1943, and $40,800,000 on June 30, 1942. The net earnings of the bank for the first six months of 1943 were $1.35 per share, including net profits on securi ties amounting to 37c per share. In the corresponding period of 1942, net eranings were 76c per share, including net profits on securities of 16c per share. Manufacturers Trust Company The statement of condition of Manu facturers Trust Company as of June 30, 1943, shows deposits of $1,416,802,430 and resources of $1,517,315,839. Resources are reported in excess of $1,500,000,000 for the first time. These figures compare with deposits of $1,344,604,197 and resources of $1,443,510,368 shown on March 31, 1943. On De cember 31, 1942, the respective figures were $1,322,420,807 and $1,419,495,474. Cash and due from banks is listed at $330,842,294 as against $375,714,378 shown on March 31, 1943, and $370,862,493 shown six months ago. United States government securities stands at $805,566,229; three months ago it was $676,984,890 and six months ago it was $635,564,410. Loans, bills purchased and bankers’ acceptances is now $276,254,774 which compares with $279,375,385 on March 31, 1943, and $300,378,843 on December 31st last year. Preferred stock is shown as $8,307,640, common as $32,998,440 and surplus and undivided profits as $46,255,896. STATEMENT OF CONDITION, JUNE 30, 1943 RESOURCES Loans and Discounts, Bonds and Securities......................................................................$1,165,132.46 U. S. Government Bonds and Securities........................................................................... 433i809!75 Overdrafts ........................................................................................................................ ’ 189!51 Furniture and Fixtures............................................................................... . 3 000.00 Other Real Estate Owned...................................................................................................... 2155o!oO Due from Banks and Bankers, Cash and Cash Items...................................................... 692,677.63 Total Resources...............................................................................................................$2,316,359.35 LIABILITIES Capital Stock ..........................................................................................................................$ 60,000.00 Surplus ......................••........................................................................................................... 35,000.00 Undivided Profits and Reserves........................................................................................... 24,947.50 Deposits Subject to Check............................................................................ $1,514,412.33 Savings Deposits ......................................................................................... 227,108.78 Time Certificate of Deposits....................................................................... 442,447,48 Demand C.D., Certified Check, Cashier’s Check..................................... 11,950.57 Trust F u n d s............................................................................................................................. 492.692,196,411.85 $2,316,359.35 B. E. RHINEHART, Director and Board Chairman The Chemical Bank & Trust Com LEO J. WEGMAN, President and Director HUGO DEININGER, pany reported as of June 30, 1943, de n L a W nnG W N ™ rV in Prf ident and Director On leave in U. S. Army D. A. DOWNING, Director (P rH. J. MAYBERRY, Director (Prisoner in Germany) posits of $1,108,817,304 and total assets CLIFFORD L. NILES, Director L. D. MURFIELD, Cashier of $1,203,538,173 as compared respec A. R. THOMAS, Director „ , , n l?v r. . . , „ , . LEONARD J. WEGMAN, R’ M‘ DEYO>Assist Cashier tively with $1,041,405,430 and $1,133,On leave in U. S. Army H. D. Heefner, Assistant Cashier 964,753 on March 31, 1943. Cash on Member Federal Deposit Insurance Corporation > A A * k V Chemical Bank >- hand and due from banks amounted to Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis K 71 —• I O W A $244,628,666 compared with $261,910,314; holdings of United States govern ment securities to $610,219,501 against $509,560,659; bankers’ acceptances and call loans to $48,294,227 against $37,472,099, and loans and discounts to $125,642,126 against $149,273,845. Capital and surplus were unchanged at $20,000,000 and $55,000,000 respec tively, and undivided profits were $6,288,537 against $5,805,606 at the end of March. The indicated net earnings on the bank’s 2,000,000 shares (par $10) amount to 69c per share for the second quarter of 1943, as compared with 60c for the same quarter a year ago. FA A Convention Adopting the descriptive phrase, “ Collective Thinking for Individual Action,” the Financial Advertisers As sociation will hold its 28th annual con vention at the Edgewater Beach Hotel on October 19th, 20th and 21st. The convention in 1942 was held entirely by mail. The board of directors of the association has scheduled this year’s shortened war advertising conference of two full days from noon on the 19th to noon on the 21st. General chairman of the convention is Lewis F. Gordon, first vice presi dent of the association and vice presi dent of the Citizens & Southern Na tional Bank, Atlanta, Georgia. Chair man of the program committee is Rob ert Lindquist, advertising and public ity manager of the American National Bank & Trust Company, Chicago, and a director of the FAA. “Business every minute” will be the watchword of the convention, said L. E. Townsend, president, in announcing the decision of the board of directors of the association. Details of the pro gram will be announced later. NEWS •— American National, Chicago Total resources of the American Na tional Bank and Trust Company of Chicago totaled $128,516,763 on June 30, 1943, compared with $114,650,365 on December 31, 1942, and $95,366,142 a year ago. Deposits increased during the twelve-month period from $89,493,057 to $122,215,029. Demand deposits which totaled $82,014,901 on June 30, 1942, and $97,345,242 on December 31st of last year, are now $108,707,558. Sav ings deposits also increased during the year from $6,146,689 to the present fig ure of $7,379,181. Total loans of the bank increased during the first half of this year from $22,756,678 to $23,493,496. Most of the increase in deposits for the six months’ period is reflected in the bank’s hold ings of United States government obli gations, direct and fully guaranteed, which increased from $40,950,871 to $54,075,757. Cash and due from banks showed a slight increase from $34,332,131 to $36,503,702, while the holdings of municipal and other marketable se curities decreased from $16,147,285 to $13,937,074. Undivided profits totaled $626,757 on The Waterloo Savings Bank W A TERLO O , IOW A Statement of Condition as Made to Superintendent of Banking and The fed era l Reserve Bank at the Close of Business June 30, 1943 RESOURCES First Mortgage Loans________________________________ $ 627,870.85 Loans Secured by Collateral------------------------------------781,902.31 Com m ercial Loans Supported by Financial Statements ________________________________________ 588,126.69 $ 1,997,899.85 Overdrafts __________________________________________ Federal Reserve Bank Stock----------------------------------------------------Real Estate (form er bank building in clu d e d )--------Furniture and Fixtures________________________________________ State, County and M unicipal B onds--------------------------123,311.93 Market B o n d s _______________________________________ 79,548.51 United States Government Bonds— D irect and G u a ra n teed________________________________________ 5,566,949.87 Cash on Hand and Due from Banks------------------------- 2,941,500.75 1,350.23 13,050.00 73,700.00 20,935.71 8,711,311-06 $10,818,246.83 LIA B IL IT IE S Capital S t o c k ________________________________________ $ 200,000.00 Surplus ______________________________________________ 235,000.00 U ndivided Profits __________________________________ 27,890.57 Deposits _____________________________________________ $ 462,890.5/ 10,355,356.28 $10,818,246.85 Member Federal Reserve System Deposits Insured by The Federal Deposit Insurance Corporation Washington, D. C. $5,000.00—Maximum Insurance for Each Depositor— $5,000.00 OFFICERS H . G. N o r t h e y , President R . W . W a it e , V ice President Ca r l e t o n S ia s , V ice President J. J. M il l e r , Cashier F r a n c is R . L a B a r r e , Ass’t Cashier V . S p a l d in g M il l e r , A ss’t Cashier O l iv e r J. S c h u t t e , Ass’t Cashier DIRECTORS Cla r e n c e E. Ca m p b e l l Ca r l e t o n S ia s R . W . W a it e H a r r y G. N o r t h e y J. J. M il l e r L o w e l l J. W a l k e r C. F. A lt s t a d t H a r r y A . L im b e r t W i l l E. O gle C. R . D a v is K . L. B ragdon G eorge E. P ik e Cl y d e H in s o n J a m e s G. E asto n I didn’t want you to feel strange— so I baked beans! https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker July 19^3 72 — June 30, 1943, compared with $463,780 on December 31, 1942. The preferred stock retirement fund was also in creased $45,000 during the half-year period and now totals $300,000 out of a total preferred stock outstanding of $600,000. Experience Service Cooperation Manned by officials with years of experience, our Correspon dent Bank Division renders a NEWS manner. The guiding policy is one of cooperation in all matters of mutual interest. cT h e Public National TRU ST C O M P A N Y OF N E W Y O R K E S T A B L I S H E D 190 8 Tipton State Makes Fine Progress The Tipton State Bank, Tipton, Iowa, as of the close of business June 30, 1943, shows an increase in deposits of $665,000 since June 30, 1942, and the surplus account has been increased from $52,500 to $87,500, making a total capital and surplus of $140,000, or 100 per cent increase in capital and sur plus during the past two years. J. W. Edge, president, reports that earnings have been very good and that they still have a sizable amount of chattel mortgages and FHA loans. While this is a cattle feeding country the farmers are not buying cattle be cause of present high prices. Since banks do not have merchan dise to sell but only intangibles— service and credit—the human element is most important in every phase of banking operation, Lawrence F. Stern, president, American National Bank and Trust Company of Chicago, de clares in the foreword of “Your Bank and Your Job,” a 48-page publication published by the bank for its em ployes. The book is the latest activity in the bank’s public relations program, an important part of which is being de voted to creating the best possible employe relations which officials be lieve are more important now than ever before. “Your Bank and Your Job is de signed primarily for new employes: in American Trust & Savings Bank DUBUQUE, IO W A Organized 1905 Incorporated 1912 STATEMENT OF CONDITION, JUNE 30, 1943 L IA B IL IT IE S R E S O U R C E S Cash U. S. and Due from Governm ent B a n k s .......................$ 1 , 9 2 7 , 9 6 3 . 6 8 B o n d s ........................... 5 ,1 0 4 ,0 0 2 .8 9 C ap ita l S tock Reserve State, County Other Bonds Bank and S t o c k ................ M un icip al 1 3 ,8 0 0 .0 0 Bonds 7 0 8,3 7 8 ,6 9 a n d S e c u r i t i e s ....................... 3 3 8 ,5 0 8 .5 8 D i s c o u n t s ...................................... 1 ,1 6 4 ,0 8 8 .3 5 O v e r d r a f t s ................................................................. 2 7 .9 8 Bank B u ild in g .................................................. P r o f i t s ............................................ R e s e r v e s ......................................................................... 2 5 0 ,0 0 0 .0 0 2 1 0,0 0 0 .0 0 6 7 ,0 1 8 .9 5 5 1 ,0 0 0 .0 0 Deposits: Demand Tim e Loans and . ..................................................... $ S u r p l u s ......................................................................... U n d iv id e d Federal . . .$ 4 ,7 7 2 ,2 1 5 .9 7 ................... U . S. Gov. W a r Lean A c c t ............................. 3 ,5 0 4 ,9 7 7 .1 0 4 5 1 ,5 5 8 .1 5 5 0 ,0 0 0 .0 0 $ 9 ,3 0 6 ,7 7 0 .1 7 8 ,7 2 8 ,7 5 1 .2 2 $ 9 ,3 0 6 ,7 7 0 .1 7 C. J. SCHRUP, Chairman of the Board D. W. ERNST, President C. J. KLEINSCHMIDT, Cashier ROY F. GLAB, Vice President A. L. VOGL, Assistant Cashier Member Federal Reserve System. Member of the Federal Deposit Insurance Corporation Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 19^3 — Employes Booklet complete service, conducted in an intimate and personalized BA N K AN D IOWA bringing a quick understanding of the spirit of our bank and breaking down the strangeness that comes with new surroundings and new associates.” The book, however, has been distributed to all employes of the bank to whom “ it should be of interest in bringing a clarification of the practice in which they have already become estab lished.” The foreword continues, “To all, an occasional re-reading of these pages is recommended. In our accumulation of day-to-day experiences, it is easy for us to lose sight of the long-range policies and ideals which should direct our activities. This book, frequently con sulted, can be our guide on the road to success, both for the bank and for our individual careers.” The contents of the book are divided into six major sections, the first sec tion, “The Bank and Its Services,” de scribing the services rendered by the principal departments of the bank and the operating divisions into which they are divided. This material is not intended as a guide for operating pro cedure, but rather gives the employes a knowledge of the bank services from the customer standpoint and also an all-over picture of the bank’s opera tions. Plans Well Under W ay Plans for the forthcoming Third War Bond Drive, which will begin late in September and last three weeks, are already well under way, said W. L. Hemingway, president of the Ameri can Bankers Association, in an address before the annual convention of the Missouri Bankers Association. Mr. Hemingway is president of the Mer cantile-Commerce Bank and Trust Company, St. Louis. He described the Treasury’s new state organizations for conducting the financing drive, which will be used for the first time in the September cam paign, and urged all bankers to coop erate fully in making the drive a suc cess by assisting the War Bond organi zations now being formed in each state. Mr. Hemingway declared that the committee on war borrowing of the American Bankers Association has re cently taken part in a conference with the Secretary of the Treasury and the Federal Reserve officials, at which the Y O U R STA TE BA N K ERS A S S O C IA T IO N O F F IC IA L S A FE , V A U L T A N D TIM ELO CK EXPERTS F. E. DAVENPO RT & CO. OM AHA 73 • IOWA September campaign and the new state organization system were dis cussed in detail. He asserted that Secretary Morgenthau “ intends to create the best organ ization possible in each state,” and that the Secretary “urgently desires the continued assistance and coopera tion of all the persons who heretofore participated in the War Savings activi ties and in the work of the Victory Fund Committees.” “The leaders of the new organiza tions have already been selected in some states, and they will be named as rapidly as possible in others,” Mr. Hemingway declared. “The governors of the Federal Reserve System and the presidents of the twelve Federal Re serve Banks have offered their full co operation and our committee on behalf of the American Bankers Association has assured the Secretary of the con tinued support of our members.” Mr. Hemingway traced the develop ment of the new state organizations for conducting the forthcoming Third War Bond campaign. He asserted that as a result of the experience ob tained in the First War Loan Drive, “the Treasury decided that better re sults would be obtained if both the War Savings organization and the Vic tory Fund Committees joined forces in the Second War Loan Drive of last April.” “The U. S. Treasury War Finance Committee was therefore set up to co ordinate the combined activities of the two groups in that campaign. The president of the Federal Reserve Banks headed the new U. S. Treasury War Finance Committees in the re spective districts and the sales were made through an organization which combined the efforts of War Savings and Victory Fund Workers. “The Secretary stated to us that his advisors had told him that the results of this drive definitely proved the ad vantage of having a single organiza- NEWS • tion. They unanimously recommended to him that the sale of government securities be placed in one organiza tion under one head. This immediate ly raised the question of how to inte grate the two groups. For reasons that seemed compelling to him, Secre tary Morgenthau decided to create the new organization along state lines, so that for the Third War Loan Drive, each one of the forty-eight states and the District of Columbia will have its own organization,” Mr. Hemingway said. He asserted that Secretary Morgen thau was highly pleased with the out come of the previous financing drives, “but he realizes that continually larger sums must be raised, and he is anxious to adopt the best possible method for raising the money,” Mr. Hemingway declared. Chicago Auditors' Election William E. Harrison, assistant audi tor, City National Bank and Trust Company, was elected president of the Chicago Bank Auditors Conference at its final meeting of the 1942-43 series, held last month. Harrison has been serving the group as its vice president. Other officers who moved up in ac cordance with the established tradition of succession are: Philip H. Cordes, CONDENSED STATEMENT OF CONDITION June 30, 1943 RESOURCES Cash and due from Banks.................................................................................................. §26,906,249.82 Bonds (carried at less than market value) U. S. Government and U. S. Government Guaranteed Bonds. .§26,436,196.88 Federal Land Bank, State and Municipal Bonds..................... 2,461,220.96 High Grade Corporation Bonds.................................................... 1,100,193.70 29,997,611.54 Federal Reserve Bank Stock............................................................................................. 90,000.00 Loans and Discounts............................................................................................................ 21,823,690.97 ......................... 105,000.00 City Bank Building— Unencumbered............................................ ......................... 7.00 Other Real Estate (Seven Properties)........................................ ............................ 1.00 Furniture, Fixtures and Safe Deposit Vaults (Cost §100,000) . .............................. 21, 000.00 Customers’ Liability Account Letters of Credit....................... ......................... 175,641.59 Accrued Interest Receivable.......................................................... ......................... 16,110.06 Overdrafts ........................................................................................ Total Resources .......................................................................................................... §79,135,311.98 LIABILITIES Capital Stock (Paid in ) ......................................................§400,000.00 Capital Stock (Earned) .................................................. 600,000.00 §1,000,000.00 Surplus (Earned) ....................................................................................... 2,000,000.00 Undivided Profits (Earned) .................................................................... 656,582.40 Invested C a p ita l.................................................................................................................... 3,656,582.40 Unearned In terest................................................................................................................ 88,455.98 Accrued Interest and Taxes................................................................................................ 209,331.57 Our Liability Account Letters of Credit Issued............................................................... 21,000.00 Deposits .................................................................................................................................. 75,159,942.03 ............................. §79,135,311.98 Total Liabilities......................... The above statement is correct. R. C. Kemper, President. CITY NATIONAL BANK & TRUST CO., Kansas City Member Federal Deposit Insurance Corporation FIRST TRUST AND SAVINGS BANK* DAVENPORT, IOWA Condition on June 30, 1943 R E S O U R C E S Loans and B a nk in g House F u rn itu re U. S. and O ther Due Assets 5 0 ,9 0 0 .0 0 F i x t u r e s ..................................................................................................................................... 1 3 ,3 8 7 .5 9 B o n d s ...................................................................................................................................$ 1 , 3 9 0 , 3 9 4 . 3 7 B o n d s ................................................. Bonds and Other $ 1 ,9 8 9 ,6 2 6 .3 1 ........................................................................................................................................................ G overnm ent M unicipal Cash D i s c o u n t s ............................................................................................................................................. 2 5 4 ,0 5 8 .9 5 ............................................................................................................................................................... from B a n k s ............................................................................................................................... 2 0 8 ,3 0 8 .8 5 2 ,4 8 5 ,2 3 0 .8 5 4 ,3 3 7 ,9 9 3 .0 2 ................................................................................................................................................................ 3 ,6 8 8 .9 0 O v e r d r a f t s ...................... 1 8 8 .5 7 T o t a l ................................................................................................................................................................... $ 6 ,3 9 5 ,7 8 4 .3 9 L IA B IL IT IE S C ap ita l ...............................................................................................................................................................................§ 2 0 0 ,0 0 0 .0 0 Surplus ........................................................................................................................................................................... 1 3 0 ,0 0 0 .0 0 U n d ivid e d Deposits Unearned Profits and R e s e r v e s ................................................................................................................ ..................................................................................................................................... 4 7 ,7 2 0 .5 2 ................... $ 3 7 7 ,7 2 0 .5 2 5 ,9 9 0 I n t e r e s t .......................................................................................................... 8 3 3 .8 9 2 7 ,2 2 9 .9 8 T o t a l ................................................................................................................................................................... $ 6 ,3 9 5 ,7 8 4 .3 9 Member of the Federal Deposit Insurance Corporation > https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Northwestern Banker July 19^3 74 —• IOWA auditor, Lake Shore Trust and Savings Bank, vice president, and Donald J. MacDonald, assistant auditor, North ern Trust Company, treasurer. The newly elected secretary is Frederick C. Messenger, auditor and controller, The Merchandise National Bank of Chi cago. The Chicago Conference is one of the original members of the Na tional Association of Bank Auditors and Comptrollers, which is composed of 50 conferences, functioning in the principal banking centers of the na tion. Annual Meeting The annual meeting of the National Security Traders Association will be held at the Palmer House, Chicago, NEWS — August 20th and 21st, according to an nouncement by Perry Brown, of New man, Brown & Company, Inc., New Orleans, Louisiana, and president of the association. Edward H. Welch, of Sincere & Company, is chairman of the arrangements committee. The nomi nating committee is headed by Ralph G. Randall, of Mason, Horan & Com pany, Chicago, Illinois, other members of which are Fumin Fusz, of FuszSchmelzle & Company, St. Louis; Ed ward W. Parsons, of Wm. J. Mericka, Cleveland; George V. Jackish, of Har ris, Upham & Company, Minneapolis, and Walter J. Connolly of Walter J. Connolly Company, Boston. Problems of the securities industry will be discussed and the War Bond Committee of the association will an nounce a program of assistance for the Treasury Department. Temporary Financing Jesse Jones, Secretary of Commerce, issued the following statement on June 19, 1943: “ Several inquiries have been received from slaughterers of live stock concerning their inability to ob tain temporary financing of their op erations pending payment of subsidy recently announced on meat. Banks or others may extend credit to the slaughterers to cover the subsidy pay- ments, with the definite assurance of the RFC that such payment will be made promptly. However, if financing cannot be readily obtained from local institutions, the RFC will make the loans. Agencies of the RFC are being instructed to make such loans prompt ly. The same assurance is extended to the creameries on the butter sub sidy.” Guaranty Trust, New York Resources, deposits and holdings of U. S. government obligations are re ported at their highest totals on rec ord, in the statement of condition of the Guaranty Trust Company of New York as of June 30, 1943. The compar ative figures show total resources of $3,073,489,040.21 on June 30th, as com pared with $3,015,473,614.70 at the time of the last published statement, March 31, 1943; deposits of $2,758,836,790.61, as compared with $2,666,261,390.29, and holdings of U. S. government obliga tions of $1,841,302,185.91, as compared with $1,827,681,573.24. The company’s capital and surplus remain unchanged at $90,000,000 and $170,000,000, respectively, and undi vided profits total $25,453,135.81, as compared with $23,445,679.92 on March 31, 1943. Closer Scrutiny Is Urged Victory requires H EALTH j TA K E THE B ATH $ i. Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July Í9J3 • D R IN K THE W A TER S Feel yourself f’fclik-Uf’ day by day, as you rest and relax at The Elms. Fortify your self with Buoyant Health through Four Kinds of Mineral Waters. Sports. Recrea tion. Low American Plan rates. Write for descriptive literature. Corrective measures regarding the issuance by federal agencies of un authorized questionnaires, the exist ence of which are imposing an unwar ranted burden on American business, have been reiterated by the advisory committee on government question naires, with the concurrence of the Bureau of the Budget. With a few exceptions, requests for information, as defined by law, are sub ject to the review of the Bureau of the Budget and may not be issued by a federal agency unless authorized by the Bureau. The advisory committee, concerned with the circulation of ques tionnaires that have not been so au thorized, advised businessmen to ex ercise more caution about those report forms that are suspect. “ Inquiry should be made of the advisory com mittee, or of the Bureau of the Budget whenever doubt exists as to whether the use of a report form has been au thorized,” the committee announce ment said. “Whenever desired, no dis closure will be made of the person or organization making the inqury.” W. J. Donald, chairman of the ad visory committee, added, “While in quiries about suspected forms may be made directly to the committee or to 75 • IOWA the Budget Bureau, businessmen may, if they prefer, write directly to the federal agency issuing the form, or instead to their trade association, Chamber of Commerce, retail organi zation, professional society, or other organization, which may in turn com municate in confidence with us. “ Business and industry are still largely unaware that a mechanism has been established by which govern mental information requests can be kept to a minimum,” Mr. Donald said. “With certain exceptions, particularly requests that are sent to less than ten respondents, ■ and those originating from exempt federal agencies, such as the Bureau of Internal Revenue, every authorized request for infomation, however made, must have the Budget Bureau’s approval. Report forms hav ing such approval bear a Budget Bu reau approval number, and in most cases an expiration date, both appear ing in the upper right hand corner of the form. Whenever, owing to the absence of an approval number there is a fair presumption that the form is unauthorized, businessmen are urged to avail themselves of the opportuni ties afforded them for relief. “The government is as determined as is business to keep reporting re quirements to a minimum. The cost to American business, in both man hours and dollars is very large. To the extent that reports are necessary, whether they be directly associated with the prosecution of the war, or es sential civilian purposes, businessmen should and do cooperate without com plaint. The Budget Bureau’s approval numbers are symbols that considera tion has been given to such necessity. Businessmen are, however, obligated to themselves and to the government to cooperate to the extent of scruti nizing requests for information from the point of view of eliminating those in circulation that have not been au thorized.” Mr. Donald said also that particu larly burdensome questionnaires, even if they have had Budget Bureau ap proval, may be made the subject of legitimate inquiry or complaint. Through the advisory committee, or its approximately 40 specialized sub committees, businessmen may be heard whenever a form is reconsidered in advance of the date of its expiration. The advisory committee is composed of representatives of the American Re tail Federation, American Trade Asso ciation Executives, National Associa tion of Commercial Organization Sec retaries, Chamber of Commerce of the United States, Controllers’ Institute of NEWS • America, National Association of Man ufacturers, and National Industrial Council. Mr. Donald, chairman of the committee, is managing director of the National Electrical Manufacturers As sociation. Vice chairman and treas urer, respectively, are E. Chester Peet, assistant treasurer of the Shell Oil Company, and T. M. Brennan, execu tive director of the National Industrial Council. Russell Schneider is the com mittee’s executive secretary. The committee maintains offices at 1615 H Street, N. W., Washington, D. C., and has a staff in constant con tact with the Budget Bureau and with business and industry. In a recent interim report of its activities, copies of which are available upon request, it cited numerous beneficial results already achieved in reducing the re porting burden on business. M ERCHANTS MUTUAL BONDING COMPANY Incorporated 1933 Home Office VALLEY BANK BUILDING Des Moines, Iowa • • This is Iow a’ s oldest surety company. A progressive com pany with experi enced, conservative management. W e are proud of our hundred and fifty bank agents in Iowa. Investment Research Anticipating a big demand for capi tal from railroads, airlines and other transportation services after the war, the Railroad Securities Committee of the Investment Bankers Association of America has inaugurated research into the nature and extent of these requirements. In a preliminary re port issued outlining the projected study, the committee said that bil lions may have to be raised to provide T o be the exclusive representative of this com pany is an asset to your bank. • • W r it e to E. H. W A R N E R S e c r e ta r y and M a n a g e r THE CLAY COUNTY NATIONAL BANK SPENCER, IO W A Condensed Statement of Condition June 30, 1943 L IA B IL IT IE S R E S O U R C E S L o a n s a n d D i s c o u n t s ................................................... $ 1 , 0 7 1 , 3 1 6 . 2 4 O v e r d r a f t s ............................................................................ 9 6 1 .0 9 B a n k i n g H o u s e ................................................................. 2 9 ,7 0 0 .0 0 F u r n i t u r e a n d F i x t u r e s . ....................................... 8 ,2 3 8 .5 0 F e d e r a l R e s e r v e B a n k S t o c k ........................... 4 ,3 0 0 .0 0 A c c r u e d In te re s t on B o n d s B o u g h t . . . . 5 7 .6 3 U . S. Bonds and Notes. 5 6 0 2 ,8 0 3 .8 4 O b lig a tio n s G u a ra n te e d B y U . S. G overnm ent 1 5 ,6 5 0 .0 0 Bonds of O ther Gov ernm ental A gen cie s. 5 ,1 1 5 .5 0 State, C o u n ty and m u n icip a l B o n d s ............... 1 1 3 ,6 8 5 .1 8 Cash and D u e from Banks .................................... 1 , 6 3 4 . 5 4 4 . 2 4 2 ,3 7 1 ,7 9 8 .7 6 Common C ap ita l F . J . O ’ B rie n , P re s id e n t I. N . K i r b y , V i c e P r e s i d e n t O . IVI. C h a n e y , V i c e P r e s i d e n t 4 3 ,0 0 0 .0 0 ............................. 8 1 ,2 3 6 .0 4 ......................................................... 3 .2 6 2 ,1 3 6 .1 8 D eposits Profits $ 3 ,4 8 6 ,3 7 2 .2 2 D Federal D e p osit ricEl ^ W z ± ± tin c j on D IR E C T O R S A. E . A n d e rs o n , Cashie r C o le tta G ra ff, Asst. C ashier D a vid T . O lso n , A sst. C ashier V e r a O lh a u s e n , A sst, C as h ie r M em ber C o u n s e l A N D B a n k R . W E S S L IN G , P R E S ID E N T 1 0 0,0 0 0 .0 0 U n d ivid e d $ 3 ,4 8 6 ,3 7 2 .2 2 O F F IC E R S S t o c k ................... $ S u r p l u s ............................................................. D . E . B e vin g, D ire cto r J. A . K in g , D ire cto r R. L C ob b . D ire cto r W ils o n C o rn w a ll, D ire cto r Insurance C o rp o ra tio n 21st y ea r planning ad vertisin g program s for banks and trust com panies . . . W r ite fo r Program K e y e d to W a r T im es. P u b l i c !Z R e l a t i o n s <^1/{ol )ze ±, iJo uiia Northwestern Banker July 1943 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 76 Banks Sold or Bought! quietly, quickly and in a personal manner JA Y A. WELCH BANK BROKER Haddam, Kansas “ 35 Years Practical Banking Experience” DES MOINES BUILDING-LOAN & SAVINGS ASSOCIATION Oldest andLargest inDes Moines 411 6lh Ave. Dial 4-7119 ELMER E. MILLER Pres, and Sec. HUBERT E. JAMES Asst. Sec. FO R Y O U R E N JO Y M E N T . . . Listen to the “ WORLD OF MUSIC” KSO, 1460 KC 9 :30-10 :00 a. m. Sundays Twenty-four Years of Hawkeye Mutual Hail I nsur ance A s s o c i a t i o n Carver Bldg. Fort Dodge, Iowa for new equipment and for the re habilitation and modernization of the railroad properties, for new central control systems, new terminal facili ties, new shops, the elimination of curves and grades and other similar improvements. War conditions are preventing ade quate maintenance and few roads are making proper cash provisions for de ferred maintenance, the committee said. Total capital expenditures of $1,000,000,000 a year for ten years fol lowing the war are predicted by some authorities, it said. Of this $600,000,000 is expected to come from earnings and depreciation reserves, indicating that the roads would enter the public capital market for some $400,000,000 a year. Restoration of the credit of the rail roads is essential if they are to have ready access to the necessary capital, the committee said. Public confidence was said to be returning to the carrier securities, “slowly and surely.” The financial health of the railroads, on the other hand, is considered by the committee to be restored except for the lack of credit. “Current abnormal earnings,” its re port said, “are enabling the roads to pile up large amounts of cash which they are using to reduce their debts through the purchase of bonds in the market. An amount close to $400,000,000 was retired last year, exclusive of any reductions through reorganiza tions, and a substantially greater amount will be retired this year. Many of the so-called borderline rail roads have cut down their interest charges to a level that would have been covered in most of the recent depreciation years.” This result in itself would not en able the roads to raise capital in a sound manner, according to the com mittee, which said, “ Equity money must be attracted and it cannot be at tracted unless there is sufficient earn ings for dividends and then only after a record of dividend payments has been established.” Large public financing is anticipated in connection with a great expansion in aviation after the war. There is no question in the committee’s mind about the investment bankers’ ability to raise all the capital aviation will need, however. “Present market prices of the stocks of the airlines in dicated the optimistic attitude of in vestors toward their future,” it said. “New issues of securities, particularly of equities, can probably be quickly sold, but the big question is how much new capital will be needed during the first years following the war and how much will government want to sup ply.” As to the amounts of new capital, it was “conservatively” estimated that $300,000,000 would be needed within three years after the close of the war for equipment on existing domestic lines without any allowance for expan sions or extension into foreign fields. Other estimates cited indicate a total of $1,500,000,000 for new equipment of domestic airlines during the first ten year period following the war. The committee, throwing these estimates out as indicative forecasts, promise to go more thoroughly into the prospects for aviation expansion and financing in a further report to be submitted at the association’s annual meeting to be held in November. Chairman of the committee is John S. Loomis of the Illinois Company of Chicago. Other members are: Ewing T. Boles, The Ohio Company, Colum bus; F. J. Campbell, Wells, Fargo Bank and Union Trust Company, San Fran cisco; Pierpont V. Davis, Harriman Ripley & Company, New York; Fair- Tf A V T IP T O N S T A T E B A N K W e ’ve had our problems in the past, and we’ve successfully met them. W e have our problems today— and with your help, we can overcome them again. Though selections may not be large and substitute m erchandise d is p la y e d — rest assured we are doing our best to serve your immediate requirements— and at the same time e n th u s ia s tic a lly support our country in the " A ll-O u t W a r Effort." Buy U. S. Bonds and Stamps" TIPTON, IOWA Statement of Condition of June 30, 1943 RESOURCES Cash and Due from Banks............§ Federal and State Bonds.............. F.H.A. Insured L oa n s.................. Chattel Mortgage Loans.............. Cedar County Farm L o a n s .......... Property Statement Loans.......... Banking House— Fixtures................ 504,563.04 706,944.00 452,033.13 380,748.65 138,658.90 107,052.38 11,819.58 Total.........................................$2,301,819.68 V 1889 Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis LIABILITIES Capital ............................................ $ 52,500.00 Surplus ........................................... 87,500.00 Undivided Profits ......................... 6,935.17 Reserves ......................................... 1,000.00 DEPOSITS ..................................... 2,153,884.51 Total.........................................$2,301,819.68 J. W . EDGE, President A. E. R U M B L E , A ssistant Cashier R. D. S W A R T Z L E N D E R , Cashier L A V E R N E D. SUCH OM EL, A ssistant Cashier D A L E H. SMITH, First A ssistant Cashier S T A T IO N E R S S BOOK B IN D E R S OFFICE O U T F I T T E R S \ ^ W - - ' ' B U S I N E S S M ACHINES G rand Av e . at Fourth * D e s M o in e s , 1a . July 1943 Member Federal Deposit' Insurance Corporation T 77 man R. Dick, Dick & Merle-Smith, New York; Allen N. Jones, Morgan Stanley & Company, New York; Rob ert G. Rowe, Stroud & Company, Phil adelphia; Percy M. Stewart, Kuhn, Loeb & Company, New York; and Henry S. Sturgis, First National Bank of the City of New York. British Embassy H. W. Auburn, formerly assistant vice president and European repre sentative of Manufacturers Trust Com pany, New York, has been appointed a first secretary of the British Em bassy in Washington, D. C. Mr. Auburn was in charge of Manufacturers Trust Company’s representative office in London from 1937 to late 1940, since which time he has been on leave of absence from the bank and has been connected with the British Embassy in Washington. Mr. Auburn was in active overseas service during World War I with the New Zealand Expeditionary Force, both as a gunner in the field and on the artillery staffs of the First Anzac Corps, Second Anzac Corps and XXII Corps, and was mentioned in Field Marshal Earl Haig’s dispatches. Mrs. Auburn is with her husband in Wash ington, and their only son is in the British Army, having been in action from the earliest days of the fighting in France before Dunkirk. in the association, it was announced. These are: Bingham, Walter & Hurry, Los Angeles; Hamlin & Lunt, Buffalo; E. A. Straw, Manchester, N. H.; and Vilas & Hickey, New York City. Hal H. Dewar, Dewar, Robertson & Pancoast, San Antonio, and Walter J. Monro of Schoellkopf, Hutton & Pom eroy, Buffalo, have been elected mem bers of the association’s board of gov ernors to fill vacancies. Calls Plan Unsound The procedure ordered by the Office of Price Administration for the verifi cation by banks of the contents of en velopes containing ration coupons de posited in the ration coupon accounts in banks was characterized by the American Bankers Association as un sound in a protest filed with OPA Ad ministrator Prentiss Brown by W. L. Hemingway, president of the A. B. A., and in a bulletin sent to all banks by the A. B. A. ration banking committee. tfndex Wo ¿Advertisers A j Allied Mutual Casualty Company................28 A. C. Allyn and Company...............................34 American National Bank, St. Joseph..........52 American National Bank and Trust Company, Chicago ....................................... 62 American Trust and Savings B ank............72 Jamieson and Company...................................44 B Annual Meeting The annual meeting of the Invest ment Bankers Association of America this year will be a three-day all-busi ness session devoted to problems of war finance and private financing after the war, the association has an nounced. It will be held in New York November 3, 4 and 5, that location be ing selected to minimize travel of dele gates, the greatest number of whom come from member houses in eastern cities. Four additional investment houses have been approved for membership Bank of America................................................30 Bankers Trust Company, Des M o in es... 61 Bankers Trust Company, New Y ork ..........48 C Central National Bank and Trust Co......... 12 Chase National B ank...................................... 5 Citizens Savings Bank, Anamosa..............70 City National Bank and Trust Company, Chicago ............................................................ 56 City National Bank and Trust Company, Kansas City ....................................................73 Clay County National Bank, Spencer... 75 Commerce Trust Company.............................54 Continental-Illinois National Bank and Trust Company ............................................. 23 Continental National Bank, Lincoln......... 55 D F. E. Davenport and Company..............55-72 Des Moines Building, Loan and Savings Association .................................................... 76 Drovers National B ank................................... 69 K Koch B roth ers....................................................76 L George LaMonte and Lessing Advertising Live Stock National Live Stock National Live Stock National Son................................ 3 Co.................................. 74 Bank, Chicago..........65 Bank, Omaha............58 Bank, Sioux City. . .46 M Merchants Mutual Bonding C o m p a n y ...75 Merchants National B a n k ......................... 2 Minneapolis Moline Power Implement Company .......................................................... 42 Minnesota Commercial Men’s Assn......... 44 Monticello State B ank.....................................68 N National Bank of Burlington.........................68 National Bank of Commerce, L in c o ln ... 56 National Bank of W aterloo...........................60 New York Trust Company.............................30 Northern Trust Company...............................66 Northwestern National B ank........................ 45 Northwestern National Life Insurance Company .......................................................... 44 « Elms H o t e l .......................................................... 74 Empire National Bank, St. Paul.................. 36 Eppley Hotels Company..................... . . . . 29 Omaha National B ank..................................... 21 F Philadelphia National B ank.......................... 24 Public National Bank and Trust Co........... 72 Farmers Mutual Hail Insurance Co........... 28 Farmers State Savings B ank................... 70 Federal Intermediate Credit Banks..........33 First National Bank, Chicago.......... 41 First National Bank, McCook.......... 57 First National Bank, Minneapolis..38 First National Bank, Omaha............ 52 First National Bank, St. Paul.................... 43 First National Bank, Sioux City.................. 63 First St. Joseph Stock Yards B ank........ 57 First Trust and Savings Bank, Cedar Rapids ..................................................68 First Trust and Savings Bank, D aven port........................................................ 73 First Wisconsin National B ank..................26 G General Finance Corporation........................ 35 II Hastings National B ank.................................53 Hawkeye Mutual Hail Insurance Assn. ..76 Home Insurance Company............................ 4 I W hile Johnny’ s home on furlough, let’ s drop down to M ike’ s place to see him! In his letter to OPA Administrator Prentiss Brown, Mr. Hemingway said, “ In our opinion this procedure is def initely unsound and the forwarding of these instructions may seriously affect the continued smooth operation of the ration banking program.” The protest and bulletin were occa sioned by instructions sent to the banks by Mr. Brown over the objec tions of the ration banking committee of the A. B. A., which OPA instruc tions direct the banks to count the con tents of a minimum of three per cent of the envelopes deposited hereafter containing up to 500 coupons. The bulletin points out that under the plan set up for the ration coupon banking system it was agreed that the only function the banks were to per form consisted of the “accounting and bookkeeping functions relating to ra tion evidences.” It adds, “ It was also understood to be a basic part of the procedure that coupons would be de posited on gummed sheets. Iowa-Des Moines National Bank................ 80 Irving Trust Company.................................... 8 P It Recordak Corporation.............Center spread S St. Paul Terminal Warehouse Co............ 6 Scarborough and Company..............27-32-64 Stock Yards National Bank, South St. Paul ............................................................40 T Tipton State Bank............................................. 76 IT Union Bank and Trust Co., Ottumwa. . . . 67 United States National B ank........................ 50 V Valley Savings B ank....................................... 79 YV Charles E. Walters Company...................... 53 Jay A. W elch ........................................................76 W essling Services ........................................... 75 Western Mutual Fire Insurance Co........... 29 Waterloo Savings B ank...................................71 Northwestern Banker July 19^3 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 78 IN THE DIRECTORS' ROOM F ire! Proof When Is a Q uarrel? There was an absent-minded Sun day school teacher with whom the boys of his class liked to have fun. One day when the boys knew that their teacher was to read a certain passage from the Bible, they pasted together the connecting pages. The teacher came into the room and began to read. When he got to the bottom of the page he read: “ ‘When Noah was 120 years old he took unto himself a wife who was’ ’’—then he turned the page—“ ‘140 cubits long, 40 cubits wide, built of gopher wood, and covered with pitch inside and out.’ ” The teacher looked puzzled for a moment, re-read the passage, and then said: “ Boys, this is the first time I have come across this passage in the Bible, but I am ready to accept it as evidence of the assertion that we are fearfully and wonderfully made.” Sentry: “Who goes there?” Major: “Major Jones.” Sentry: “ I can’t let you proceed with out the password, sir.” Major: “ Drat it, man, I’ve forgotten it. You know me well enough.” Sentry: “Must have the password.” Voice from guardhouse: “Don’t stand there arguing all night; shoot ’im.” “What started the trouble between you and the plaintiff?” “Well, your honor, it was like this. ’E threw ’is beer over me—I ’its ’im acrost the face wiv my bag of tools —then ’e cuts my ’ead open wiv a bottle—’an the next think we knows, we find ourselves quarrelin’!” Preferred to Pay “Gee!” exclaimed the sick man as the nurse let him sit up for the first time. “ I wouldn’t let them operate on me again for a million dollars!” Just then the doctor came along, a worried look on his face. “ I’m sorry,” he said to the patient, “but I shall have to open you again.” The convalescent let out a roar. “Nothing doing,” he cried. “ I won’t stand for it.” “But,” argued the doctor, “it’s some thing that just has to be done. You see, a terrible mistake was made. When I sewed you up I left one of my rubber gloves inside you.” The patient was incredulous. “ Is that why you want to open me again?” “Yes,” said the doctor. The sick man smiled. “Don’t be silly,” he said. Here’s a dollar—go out and get yourself an other rubber glove.” H ard Luck A man walked reluctantly into a hat shop. “ I’ve just lost a bet,” he said, “and I want to buy a soft hat.” “This is the softest we have,” said the assistant. The customer gazed at it specula tively. “What I want,” he said wistfully, “is something a little more tender. I’ve got to eat it.” O. K .— All But It was kit inspection, and the soldiers had their things laid out on their beds. The orderly walked into the room and approached Private Brown. “Three shirts, Brown?” he asked. “Yes, sir. One on, one in the wash and one in the box,” replied the private. “Two pairs of boots?” “Yes, sir; one pair on and one pair in the box.” “Two pairs of socks, Brown?” “Yes, sir; one pair on and one pair in the box.” “Good! Now, where’s the box?” “Dunno, sir; I’ve lost it.” Punny Customer: “My goodness, eggs are high!” Grocer: “ Sure, part of the war pro gram.” Customer: “How?” Grocer: “All the hens are making shells.” Orders Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 19J3 K J, y Bargain Seekers Progress I once had a classmate named Guesser, Whose knowledge got lesser and lesser; It at last grew so small, He knew nothing at all— And now he’s a college professor. To his Negro company of infantry in camp a black first sergeant spoke dire words: “ From now on when Ah blows dis yere whistle, Ah wants to see a huge impenetrable cloud of dust come boilin’ outa dem tents. An’ when ’at dust clears away, Ah wants to find two rows of statues.” Shrewd Three managers of chicken farms in a foreign country, so the story goes, were being questioned by an investi gator. “What do you feed your chickens?” he asked the first. “ Corn.” “You’re under arrest! We use corn to feed people!” The second overheard this conver sation, and tried to play safe. “What do you feed your chickens?” came the question. “Corn husks.” “You’re under arrest! We use the husks to make cloth. And you?” he asked, turning to the third man. “ I give my chickens the money and tell them to go and buy their own food!” > Every time I date the Lieutenant, he wants to know if I'm hiding any military secrets! The farmer’s wife was famous for miles around for her sharp tongue, but one day she had to stop nagging. A farm horse kicked her so badly that she had to go to a hospital. During her absence there was a ceaseless stream of callers at the farm. The farmer was touched. “ It’s very nice of the neighbors, especially the men, to call and ask after the missus,” he remarked to the maid-of-all-work. “Aye, sir,” replied the girl, “but most of them want to know if you’ll sell the horse.” r S T A T E M E N T O F C O N D I T I O N • Ju n e 30, 1943 ‘R e s o u r c e s Loans and Discounts Other Bonds and Stocks Overdrafts Customer Liability on Acceptances Government Obligations, Direct and Fully Guaranteed Municipal B inds Cash and Due from Banks $2,948,109.41 15,000.00 147.01 11,144.40 $4,806,600.00 163,737.50 2,842,108.63 7,812,446.13 $10,786,846.95 Complete -e ia b ilit ie s Capital Stock — Common. facilities H 200 , 000.00 for your 200 , 000.00 Undivided Profits Reserves Unearned Discount Bank Liability on Acceptances Deposits 80,864.18 68,516.03 20,888.31 11,144.40 10,205,434.03 Des Moines $10,786,846.95 ALLEY AVING DES MOINES BANK Member Federal Deposit Insurance Corporation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis business dob Ahe ad I n s is t e n t , v igorou s coop era tion in the sa le o f W a r B on d s con tin u e s to b e th e m o s t im p o rta n t w ork Iow a B a n k s and B an kers ca n do tow ard w in n in g the W ar. B a n k s h a v e s o l d 8 3 % o f a ll W a r B on d s for U n cle S a m w ith out c o s t to the G o v e r n m e n t or to in v e s t o r s . N o t e w o r t h y a s that record is, it is our duty and respon sibility to strive to e x ce l it in h elpin g to provide the bill ion s still n eed ed for V ictory. L e t ’s r o ll u p o u r s l e e v e s a n d co n tin u e to do ou r b e s t in the m on th s ahead. iOw a -D es M oines N ational B ank & TRUST COMPANY M e m b e r F e d e r a l D e p o s it In s u r a n c e C o r p o r a t i o n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis