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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


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Federal Reserve Bank of St. Louis

How the W ar Has Come to the Farm
Page 22

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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.

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ACEDAR RAPIDS BANK

CEDAR
R A P IO S

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SERVICING ALL IOWA

MERCHANTS

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NATIONAL BANK

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OFFICERS

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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

^ ^

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>

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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‘


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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.


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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

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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

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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

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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

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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


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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.


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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

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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

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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.

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Federal Reserve Bank of St. Louis

ASSISTANT CASHIER

GEO. L. NISSLY

ASSISTANT TRUST OFFICER

ALBERT C. ROBERTS

ASSISTANT TRUST OFFICER
Arm ed Forces

13

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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.

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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.

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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.

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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.

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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
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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

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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


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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

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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


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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


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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


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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

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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

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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.

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Over a Third of a Century of
Safety and Service with Savings
Northwestern Banker Jnlij 19^3


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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

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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

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\

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

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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

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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

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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

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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.
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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

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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


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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


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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 )


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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.


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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

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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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

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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


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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


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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

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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

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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

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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!


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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


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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.

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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

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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