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JU L Y . 1947

State Banking
Conventions
— Pages 22, 24, 28


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Federal Reserve Bank of St. Louis

JOHN D. GOODLOE. RFC CHAIRMAN, TESTIFIES— See Page 15

■)

Check Your Needs
In checking your correspondent needs in the mid­
west

area,

consider

the

exceptional

scope

of

the

services rendered by this 66-year old institution . . . its
influential contacts both within and outside the middlewest . . . its large resources . . . long experience . . .
and friendly cooperation.
loin the hundreds of banks which are finding com­
plete satisfaction in Merchants National Bank service.

THE
MERCHANTS NATIONAL
=
lBANKl=
O F F I C E R S
JAMES E. HAMILTON, Chairm an Executive
Committee
S. E. COQUILLETTE, Chairm an of the Board
JOHN T. HAMILTON II, President
H. N. BOYSON, V ice President
MARK J. MYERS, V ice President a n d C ashier
GEORGE F. MILLER, V ice President and
Trust Officer
MARVIN R. SELDEN, V ice President
FRED W . SMITH, V ice President

«

R. W . MANATT, Assistant C ashier
L. W . BROULIK, A ssistant C ashier
PETER BAILEY, Assistant C ashier
R. D. BROWN, Assistant C ashier
O. A . KEARNEY, A ssistant C ashier
STANLEY J. MOHRBACHER, A sst. C ashier
EVERETT C. PRATT, A ssistant C ashier
C. F. PEREMSKY, A ssistant C ashier
VICTOR W . BRYANT, A ssistant C ashier
WALLACE S. HAMILTON, Building M anager

Cedar Rapids

Iowa

Member Federal Deposit Insurance Corporation

Northwestern Banker, published monthly by the Northwestern Banker Company, at 527 Seventh Street, Des Moines, Iowa. Subscription, 35c
per copy, $3.00 per year. Entered as Second Class Matter January 1, 1895, at the Post Office at Des Moines, Iowa, under Act of March 3, 1879.


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Federal Reserve Bank of St. Louis

3

A R EA C T IO N
th at spread s
and

S P R EA D S

GEORGE LAMONTE & SON, NUTLEY, NEW JERSEY

comi«vlUt 4'

.,T4 QìSèSS-

JÉÉ

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Federal Reserve Bank of St. Louis

A Check Paper All Your Own
Why not follow ihe lead of America's out­
standing banks and corporations? Let us
reproduce your trade-mark in the paper
itself. Such in d iv id u a l ize d check paper pro­
vides maximum protection against altera­
tion and counterfeiting —sa ves banks
sorting time — helps prevent errors.

CORPOWÜ

THE WAVY UNES ARE A IA MONTE TRADE MARK

Northwestern Banker, Ju ly, 1947

4

COLLECTION SERVICE
W h en banks send their checks, notes and drafts to us for
collection they are assured o f prom pt and dependable
service— twenty-four hours a day.
M odern, high-speed machines, plus careful w ork by
experienced personnel, insure the earliest availability o f
the proceeds o f all items.
W e w elcom e inquiries from correspondent banks and
others with a view to securing full benefit from mail and
express schedules, both rail and air, and thus further expe­
dite the handling o f items forwarded to us for collection.
Y o u are cordially invited to visit us at your conven­
ience. W e w ill be glad to show you
how deposits are processed to insure
maximum speed o f presentation.

Bankers T rust
Company
NEW

M EMBER

FEDERAL

Northwestern Banker, Ju ly, 1947


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Federal Reserve Bank of St. Louis

D E P O S IT

YORK

IN S U R A N C E

C O R P O R A TIO N

Ik

cJ m w u d C T T /M U C sitt , / m / texi

»,
judgment. This, for instance, was an
order on a store for the relief of a
bereaved Indian woman: “ Pleze to
Deliver the widow of the murdered
Indian Such goods as she shall chuze
to wipe away her Tears to the amount
of Five Dollars.”
During the five years of the Indian
war the residents of Campus Martius
remained safe from attack within their
fort. The more daring men ventured
out to farm, hunt game and scout for
Indians; some lost their lives in such
forays but the Marietta people killed
very few Indians. In the words of
their General Putnam, “ Providence

CAMPUS MARTIUS

General Putnam’ s own
In d i a n s were still at­
cabin adjoined the south­
tacking settlers in 1788 when the
The living room today, furnished in the style of Putnam’s period
east blockhouse and con­
vanguard of forty-eight members of
so ordered that in the course o f the
sisted of two rooms downstairs and two
the Ohio Company arrived at the
W ar we obtained two Indian Schelps,
upstairs. His family joined him there
Muskingum River to establish the first
& believe we killed a third.”
in November, 1790.
officially sanctioned settlement in the
After the war Putnam enlarged his
The
settlers
named
their
new
town
Northwest Territory. Thus the chief
cabin
in Campus Martius and contin­
M
arietta
in
honor
of
concern of these cautious
ued
to
make his home there until his
Queen
Marie
Antoinette;
veterans of the Revolution
death
in
1824. It stands today in its
for
their
fortress
they
was to build a fortification
original form in a wing of the Campus
chose the classical name of
for the protection of the
Martius State Memorial Museum in
Campus M artius which
rest of the group and their
Marietta. Appropriately, the one house
was taken from the drill
families who were to fo l­
to be preserved from the state’ s early
field of ancient Rome.
low at a later date. As
days is that of the man who has been
The superintendent of
their leader, General Ru­
called the Father of Ohio.
the colony was General
fus Putnam, wrote in his
Putnam who had been
memoirs, “ I was fully perThe 'Home, through its agents and
suaided that the Indians
The Father oí Ohio
chief engineer of the army
brokers, is America's leading insurance
during the Revolution, designer of the
would not be peacible very Long •
—
protector of American Homes and the
fortifications at West Point and moving
lienee the propriety of imediately erect­
Homes of American Industry.
spirit in the establishment of the Ohio
ing a cover for the Emigrents who

H

o s t il e

were Soon expected.”
As a fortification, the settlers con­
structed a stockade in the form o f a
hollow square, occupying some eight
acres, with two-story cabins along the
sides and blockhouses at the corners.

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Federal Reserve Bank of St. Louis

Company. From surviv­
ing papers it is evident
that he was required to
arbitrate all sorts of
questions, calling for
humor as well as good

a THE
N E W
FI RE

HOME *
Y O R K

AUTOMOBILE

6

THE CHASE
NATIONAL BANK
OF THE CITY OF NEW YORK
S T A T E M E N T OF CONDITION, J U N E 30, 1947

RESO URCES
Cash and Due from B a n k s ....................................................$ 1 ,1 1 3 ,7 4 5 ,1 1 5 .6 2
U . S. G overnm ent O b lig a tio n s........................................

2 ,1 6 8 ,5 6 2 ,6 9 1 .2 3

State and M unicipal S ecu rities........................................

9 0 ,2 8 6 ,0 4 3 .1 6

O ther S e c u r i t i e s ..................................................................

1 6 7 ,4 6 5 ,5 7 8 .5 1

.

1 ,2 0 3 ,0 0 7 ,4 5 7 .1 4

Accrued Interest R e c e i v a b l e ........................................

Loans, D iscounts and Bankers’ Acceptances

.

1 0 ,3 2 6 ,3 8 3 .0 8

M o r t g a g e s ...............................................................................

1 1,2 3 8 ,2 8 2 .4 0

Custom ers’ Acceptance L i a b i l i t y .................................

7 ,1 2 8 ,2 8 4 .7 1

Stock o f Federal Reserve B a n k ........................................

7 ,9 5 0 ,0 0 0 .0 0

Banking H o u s e s ..................................................................

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

O ther Assets

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

2 ,7 1 8 ,6 5 4 .8 5
$ 4 ,8 1 4 , 2 7 7 ,1 3 0 .2 5

L IA B IL IT IE S
Capital Funds:
Capital Stock.

.

.

.

.

.

$ 1 1 1 ,0 0 0 ,0 0 0 .0 0

S u r p l u s ........................................
U ndivided Profits

.

.

.

.

1 5 4 ,0 0 0 ,0 0 0 .0 0
5 2 ,3 1 6 ,5 8 4 .3 6
$

D ividend Payable August 1, 1 9 4 7

3 1 7 ,3 1 6 ,5 8 4 .3 6
2 ,9 6 0 ,0 0 0 .0 0

Reserve for C o n t in g e n c ie s ..............................................

1 6 ,4 4 8 ,7 2 1 .8 4

Reserve for Taxes, Interest, etc.......................................

1 2 ,2 9 1 ,3 1 2 .4 7

D e p o s i t s ......................................................................................
Acceptances Outstanding
.
. $ 1 0 ,9 3 6 ,6 9 9 .4 7

4 ,4 4 5 ,0 8 1 ,2 2 1 .3 5

Less A m ount in P o rtfo lio .

.

3 ,1 9 2 ,0 8 2 .4 9

7 ,7 4 4 ,6 1 6 .9 8

Liability as Endorser on Acceptances
and Foreign B i l l s ...........................................................

1 ,3 6 1 ,0 0 7 .3 9

O ther L i a b i l i t i e s ..................................................................

1 1 ,0 7 3 ,6 6 5 .8 6
$ 4 ,8 1 4 ,2 7 7 ,1 3 0 .2 5

United States Government and other securities carried at $312,669,070.00 are pledged to
secure public and trust deposits and for other purposes as required or permitted by law.

Member Federal Deposit Insurance Corporation

Nort hwest ern Banker, July, 1947


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Federal Reserve Bank of St. Louis

7

CROCKER FIRST NATIONAL RANK
OÏ

SAN

FRANCI SCO

SAN FRANCISCO

OAKLAND

Condensed Statement at close o f business June 30, 1947

Resources
Cash and Sight E xch a n ge.....................................................

DIRECTORS

. $71,998,879.27

Securities—Unpledged
J a m e s K. M offett

United States Bonds......................................................$142,104,975.70
State and Municipal Bonds

.

.

.

.

.

.

9,647,656.94

Other B o n d s .......................................................

Chairman of the Board

153,879,696.23

2,127,063.59

W

President

*Securi ties—Pledged
United States Bonds to Secure War Loan
Deposit A c c o u n t .....................................

J. F. S u l l iv a n , J r.

8 , 000, 000.00

Vice President

United States Bonds—T o secure Trust De­
posits and deposits of Public Funds .

22,333,000.00

Other Bonds to Secure Deposits .

479.000.

United States Bonds—T o qualify for
Fiduciary P o w e r s ....................................

600.000.00

D. J. M u r p h y

00

Vice President

Loans on Real E s t a t e ...........................

20,352,124.28

Loans' and D i s c o u n t s ...........................
Capital Stock in Federal Reserve Bank

43,397,585.56

.

.

.

.

31,412.000.00

St a r r B ru ce
G eorge T . C a m e r o n

63,749,709.84

R

650,817.75

. . . .

A . G . G riffin

3,075,202.77
189,118.80

Other R e s o u r c e s .....................................

A r th u r W . H o o pe r
C harles S. H o w a r d

$325,435,424.66
Liabilities

C l if t o n H . K r o l l

$ 6,000,000.00

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

.

N o r m a n B . L iv e r m o r e

3,618,466.67

210, 000.00

Reserve for Taxes and I n t e r e s t .....................
.

L ew is A . L a p h a m

10, 000, 000.00

Surplus . . . .
...........................................
Undivided P rofits................................................
Reserve for Dividend Payable July 1, 1947 .
Letters of Credit and Acceptances .

W

alter

S. M a r tin

783,344.39
.

A t h o l l M c B ean

650,817.75

Deposits:

J oseph A . M o or e

War Loan Deposit Acct.
. . $ 1,072,938.29
Trust D e p o s i t s ........................
5,765,600.09
Other Secured Deposits . . .
11,727,511.43
Total Secured D eposits..........................................
Time D e p o s it s .......................................................
Savings Deposits.......................................................
Demand D e p o s i t s ...........................................

Other Liabilities

E. E aston

A rth u r G o o d a l l

Bank Premises O w n e d ...........................

Capital

o ber t

480,000.00

Customers’ Liability under Letters of
Credit and Acceptances

W . C rocker

il l ia m

S. F. B . M orse
C h arles P age

? 18,566,049.81
1,259,211.10
81,426,506.18

G eorge A . P o p e , J r .
M rs. H en ry P. R usseijl

202,399,029.57

303,650,796.66
521,999.19

$325,435,424.66

J. F. Sh u m a n

..

W

a lte r

H . S u lliv an

*The pledge of securities is required by statute to secure Trust Deposits and to secure deposits of the United States, any
State, or any political sub-division thereof.


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Federal Reserve Bank of St. Louis

Member Federal Deposit Insurance Corporation

Northwestern Banker, July, 1947

8

CENTRAL
BANK

AND

TRUST
N EW

TRUSTEES

HANOVER
COMPANY

YORK

S tatem en t o f C o n d itio n , June 30 , 1947

G EO R G E W . D A V IS O N
Honorary Chairman

ASSETS

L O U IS S. CATES
President, Phelps Dodge Corporation
C O L B Y M . CHESTER
Honorary Chairman
General Poods Corporation
J O H N B. C L A R K
President, The Clark Thread Co.
J A R V IS C R O M W E L L
President
William Iselin & Company, Inc.

386 , 393 , 239.86

Cash and Due from B a n k s ...................................$

U. S. Government Securities........................................... 688 , 952 , 210.80
State and Municipal S e c u ritie s.............

48 ,030 , 972.67

Other S e c u r itie s ..........................................

14 ,648 , 762.58

B E R N A R D M . CU LVE R
Chairman o f the Board
Continental Insurance Company

Loans and Bills Purchased............................ 407 , 570 , 502.53

J O H N S T O N DE FO R EST
Attorney

Real Estate M ortgages..............................

T H O M A S D IC K S O N
President
Berlin and Jones Company, Inc.
W ALTE R G . D U N N IN G T O N
Attorney
Dunnington, Bartholow and M iller
W IL L IA M A. EL D R ID G E
Vice President

Banking H o u s e s .........................................

12 , 224 ,009.00

Interest A c c r u e d ..........................................

3 ,066 , 808.56

Customers’ Liability on
Acceptances O u tsta n d in g ...................

1 ,946 ,426.07
Total^ 1 , 568 ,086, 844.68

W IL L IA M F. C. E W I N G
Vice President and Treasurer
Alexander Smith and Sons Carpet Co.
R O B E R T L. G E R R Y
President, The Gerry Estates, Inc.
W IL L IA M S. G R A Y , JR.
President
C. JARED IN G E R SO L L
Chairman o f the Board
Kansas, Oklahoma and G ulf Railway Co.
K . T . KELLER
President, Chrysler Corporation
G E O R G E M . M O FFE TT
Chairman o f the Board
Corn Products Refining Co.
J O H N K . O L Y P H A N T , JR.
Vice President
B E N JA M IN O ’SHEA
Chairman Executive Committee
Union Carbide and Carbon Corporation
EU STIS P A IN E
Chairman of the Board, N ew York and
Pennsylvania Co., Inc.
AU GUSTE G. P R A T T
President
The Babcock and Wilcox Company
G W I L Y M A . PRICE
President
Westinghouse Electric Corporation
LU C IU S F. R O B IN S O N , JR.
Attorney
Robinson, Robinson and Cole
J O H N P. STEV EN S, JR.
President, J. P. Stevens & Co., Inc.
H E N R Y P. T U R N B U L L
Montclair, N ew Jersey
W IL L IA M W O O D W A R D
N ew York, N. Y.

Northwest ern Banker, July, 1947


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Federal Reserve Bank of St. Louis

5>2 53>9I 2 -6X

L IA B IL IT IE S
C a p i t a l ...........................................$ 2 1 ,000 ,000.00
Surplus

80,000, 000.00

.

Undivided Profits............................. 24 , 15 5 , 236.79

$

12 5 , 15 5 , 236.79

Reserves:

8, 18 2 , 761.76

Taxes, Interest, etc.............................
Dividend:
Payable July 1 , 1 9 4 7 ........................

1 ,050 ,000.00

A c c e p t a n c e s ............................. $ 5 , 389 , 225.40
In Portfolio.................................... 3 ,4 4 1 , 355.04

1 , 947 , 870.36

D eposits.............................................................1 ,4 3 1 , 750 , 975.77
Total$ 1 , 568 ,086 , 844.68
There are pledged to secure public monies and to qualify for fiduciary powers
U. S. Government S ecu rities ........................... $ 19 , 426 , 814.54
MEM BER

FED ERAL

D E P O S IT I N S U R A N C E

C O R P O R A T IO N


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Federal Reserve Bank of St. Louis

9

C o n t in en t a l I llin o is
N a tio n al B a n k
a n d T rust C om pany
OF C H IC A G O

Statement of Condition, June 30, 1947

RESOURCES
Cash and Due from Banks............................................................. $
United States Government Obligations....................................

571,561,779.50
1,316,616,021.75

Other Bonds and Securities...............................................................

47,591,813.68

Loans and Discounts............................................................................

417,745,166.60

Stock in Federal Reserve B an k......................................................

3,600,000.00

Customers’ Liability on Acceptances...........................................

651,663.59

income Accrued but N ot C ollected..............................................

6,154,480.58

Banking H o u se .......................................................................................

10,350,000.00
$2,374,270,925.70

L IA B IL IT IE S
D eposits....................................................................................................... $2,185,408,381.53
Acceptances.............................................................................................
Reserve for Taxes, Interest,

651,663.59

andE xpen ses..............................

10,747,382.79

Reserve for Contingencies................................................................

18,110,503.23

Income Collected but N ot Earned................................................

298,930.42

Capital S to c k .....................................................................

60,000,000.00

Surplus.......................................................................................................

60,000,000.00

Undivided Profits..................................................................................

39,054,064.14
$2,374,270,925.70

United States Government obligations and other securities carried at
$339,701,900.08 are pledged to secure public and trust deposits and for
other purposes as required or permitted by law

Member Federal Deposit Insurance Corporation

Northwestern Banker, July, 1947

10
The advertisem ent renrodurvtl hoi
in I\ew y _ _ , r .
Jl
Ced below s p e a r e d recently
Veiv 1 orh City M etropolitan N ew spapers.

M O N E Y ..at work for you...
BANK STATEMENT is a special kind of mirror. In it
you can see reflected the business and private life of
your community.

A

You can see people turning to the bank for backing in
business opportunities . . . for help in building homes.. •
for aid when sickness comes. You
can see men and women bringing
hard-earned dollars to the bank
for safe keeping.
Then there are other things you
can see, too. How the bank buys
bonds and thereby helps finance
the operations of the Federal Gov­
ernment, the State, the City! How
the bank pays taxes! How the

bank helps make it possible for industry to produce the
goods you want and need! How the bank joins hands
with other banks all over the world so that people in
different towns, different states, and different nations
can trade with one another!
In the statement below, you see
reflected the story of our bank
and our more than 1,000,000
customers. It is a picture of
money at work for depositors,
borrowers, and the community
as a whole. It is the picture o f a
robust, thriving service insti­
tution ready to serve you at all
times whether your needs be
great or small.

P R E S ID E N T

D I R E C T O It S

CONDENSED

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

as at close o f business J une 3 0, 1 9 4 7
R F. S O U It C E S

Cash and Due from B a n k s ............................................. $ 536,619, 548.88
U. S. Government S ecu rities..................................... . 1,175,263, 724.35
3,370. 433.23
U. S. Government Insured F. H. A. Mortgages.
32,537. 853.19
State and Municipal B on d s.....................................
2,475. 000.00
Stock of Federal Reserve B a n k .............................
22,776. 782.02
Other S e c u ritie s .....................................................
450,415. 149.03
Loans, Bills Purchased and Bankers’ Acceptances
13,662. 496.80
M ortgages..................................................................
10,159. 053.04
Banking Houses..........................................................
262. 100.73
Other Real Estate E quities.....................................
5,048. .547.08
Customers’ Liability for Acceptances.....................
7,320 .901.86
Accrued Interest and Other R esources.................
*2,259,911,590.21
LIARIEVTIES

C a p ita l................................................. $41,250,000.00
Su rplu s................................................
41,250,000.00
Undivided P rofits................................
38,798,074.65
Reserve for C ontingencies.....................................
Reserves for Taxes, Unearned Discount, Interest, etc.
Dividend Payable July 1, 1947 .................................
Outstanding Acceptances..............................................
Liability as Endorser on Acceptances and Foreign Bills
Deposits...................................................................... ....

? 121,298,074.65
9,837,867.75
8,124,818.56
1,237,500.00
6,243,971.68
166,664.00
2,113,002,693.57
$2,259,911,590.21

United States Government and other securities carried at $38,690,694.95 are pledged
to secure U. S. Government War Loan Deposits o f $10,635,413.73 and other public
funds and trust deposits, and fo r other purposes as required or permitted by law.

Manufacturers Trust Company
Head Office: 55 Broad Street, New York 15, N . Ì .
75 COMPLETE BANKING OFFICES IN GREATER NEW YORK
Member Federal Deposit Insurance Corporation

Northwest ern Banker, July, 1947


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Federal Reserve Bank of St. Louis

EDWIN M. AIXEN
New York City
EDWIN J. BEINECKE
Chairman, The Sperry &
Hutchinson Co.
EDGAR S. BLOOM
Chairman, Atlantic, Gulf and
West Indies Steamship Lines
ALVIN G. BRUSH
Chairman, American Home
Products Corporation
LOU R. CRANDALL
President, George A. Fuller
Company
CHARLES A. DANA
President, Dana Corporation
HORACE C. FLANIGAN
Vice-Chairman o f the Board
JOHN M. FRANKLIN
President, United States Lines Co.
PAOLINO GERLI
President, Gerli & Co., Inc.
HARVEY D. GIBSON
President
FREDERICK GRETSCH
President, Lincoln Savings Bank
JOHN L. JOHNSTON
President, Lambert Company
OSWALD L. JOHNSTON
Simpson Thacher & Bartlett
KENNETH F. M acLELLAN
President, United Biscuit
Company o f America
SAMUEL McROBERTS
Chairman, McRoberts &
Tegtmeyer, Inc.
JOHN T. MADDEN
President, Emigrant Industrial
Savings Bank
JOHN P. MAGUIRE
President, John P. Maguire & Co., Inc.
C. R. PALMER
President, Cluett Peabody & Co., Inc.
GEORGE J. PATTERSON
President, Scranton &
J^ehigh Coal Co.
HAROLD C. RICHARD
New York City
HAROLD V. SMITH
President, Home Insurance Co.
ERNEST STAUFFEN
Chairman, Trust Committee
GUY W . VAUGHAN
President, Curtiss- Wright
Corporation
HENRY C. VON ELM
Chairman o f the Board
ALBERT N. WILLIAMS
President, Westinghouse
Air Brake Company

11

Directors

Statement of Condition

JAMES M. BAR KER
Chairman, Allstate Insurance Company

June 30, 1947

M ARK A. BRO W N
Executive Vice-President

Resources
Cash on Hand and Due from Banks
U. S. Government Securities
State and Municipal Securities
Other Bonds and Securities
Loans and Discounts
.
.
.
Federal Reserve Bank Stock
Customers’ Liability on Acceptances and
Letters of Credit Accrued Interest and Other Resources
Total

T H O M A S DREVER
President, American Steel Foundries

$119,231,444.89
165,587,504.21
26,720,588.07
13,639,073.69
166,934,082.60
600,000.00
1,877,472.02
2,219,343.83
$496,809,509.31

.

.
.

.
-

$
-

8,000,000.00
12,000,000.00
5,692,337.21

General Contingency Reserve
Reserve for Taxes, Interest, Etc. Acceptances and Letters of Credit
Demand Deposits
$416,278,490.95
Time Deposits .
.
.
42,575,817.63


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Federal Reserve Bank of St. Louis

Total

A R T H U R B. H A L L
Hall & Ellis
AL B E R T W . H A R R IS
Chicago
S T A N L E Y G . H A R R IS
Chairman of Executive Committee
j o h n l . M cC a f f r e y
President, International Harvester Co.

F R A N K M cN A IR
Chicago

$ 25,692,337.21
6,755,700.43
3,629,691.07
1,877,472.02
458,854,308.58
$496,809,509.31

at $31,672,777-68 are pledged to secure Public and Trust Deposits

Member of Federal Deposit Insurance Corporation

FRED G . G U R L E Y
President, Atchison, Topeka &
Santa Fe Railway Company

JOHN M cK IN L A Y
Chicago

United States Government Obligations and Other Securities carried
and for other purposes as required or permitted by law.

H O W A R D W . FENTON
Chicago

f . b . M cC o n n e l l
President, Sears, Roebuck & Co.

Liabilities
Capital
.
Surplus
.
.
Undivided Profits

F R A N K R. ELLIOTT
Chicago

A . H . M ELLINGER
Director, Illinois Bell Telephone Co.
C H A R L E S H . M ORSE
Director, Fairbanks, Morse & Co.
G U Y E. REED
Vice-President
P A U L S. R U SSEL L
President
W IL L IA M P. SIDLEY
Sidley, Austin, Burgess & Harper
H A R O L D H . S W IF T
Vice-Chairman ol Board, Swiit & Co.
S T U A R T J. TE M PL ET O N
Wilson & Mcllvaine
FRANK H. W O O D S
Chairman,
Addressograph-Multigraph Corp.

Northwestern Banker, July, 1947

12

THE NATIONAL CITY BANK
OF N E W Y O R K
1812

Head Office

•

135th ANNIVERSARY — 1947

—

55 W A L L STR E E T

•

New York

Condensed Statement o f Condition as o f June 3 0 ,1 9 4 7
Including Domestic and Foreign Branches But Not Including The Affiliated City Bank Farmers Trust Company
( In Dollars Only— Cents OmittedJ

ASSETS
Cash and Due from B a n k s .......................................
United States Government Obligations (Direct
or Fully Guaranteed)..............................................
Obligations of Other Federal Agencies.................
State and Municipal Securities................................
Other Securities..............................................................
Loans, Discounts, and Bankers’ Acceptances.. .
Real Estate Loans and Securities...........................
Customers’ Liability for Acceptances...................
Stock in Federal Reserve B a n k ...............................
Ownership of International Banking Corpora­
tion .................................................................................
Bank Premises................................................................
Items in Transit with Branches..............................
Other A ssets....................................................................

$1,301,215,569

T o t a l ................................................................

$5,044,245,923

2,154,497,314
25,678,216
217,046,678
93,843,901
1,181,679,629
3,096,927
13,366,224
6,900,000
7,000,000
28,898,069
7,528,414
3,494,982

Reserves for:
Unearned Discount and Other Unearned
I n c o m e . .................................................................
Interest, Taxes, Other Accrued Expenses, etc.
D ivid en d ........................................................................
C a p ita l........................................................ $77,500,000
Surplus......................................................... 152,500,000
Undivided Profits.................................... 36,036,301
T o t a l................................................................

$4,720,475,216

15,354,191

4,695,686
33,034,529
4,650,000

266,036,301
$5,044,245,923

$266,372,976 o f United States Government Obligations and $2,588,219 of
other assets are deposited to secure $218,225,035 of Public and Trust Deposits
and for other purposes required or permitted by law.
(M em ber Federal D eposit Insurance Corporation)

N ort hwest ern Banker, July, 1947

W . R A N D O L P H B UR GE SS
Vice-Chairman of the Board
W M . G A G E B R A D Y , JR.
President

SO ST H E N E S B E H N
President, International Tele­
phone and Telegraph Corporation
C U R T IS E . C A L D E R
Chairman of the Board, Electric
Bond and Share Company
GUY CARY
Shearman & Sterling & Wright

C LE V E L A N D E. D OD G E
Vice-President, Phelps Dodge
Corporation
A . P. G IA N N I N I
Founder-Chairman, Bank
of America National Trust
and Savings Association
JOSEPH P. G R A C E , JR.
President, W . R. Grace & Co.

Figures of Foreign Branches are included as o f June 25, 1947, except
those o f the Dairen Branch which are prior to the outbreak o f the War,
but less reserves.


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

G O R D O N S. R E N T S C H L E R
Chairman of the Board

E D W A R D A. D E E D S
Chairman of the Board, The
National Cash Register
Company

L IA B IL IT IE S
D eposits.............................................................................
(Includes United States War
Loan Deposit $22,664,132)
Liability on Acceptances and Bills. .$27,065,226
Less: Own Acceptances in Portfolio.............................................. .. . . 11,711,035

DIRECTORS

JA M E S R. H O B B IN S
President, Anaconda Copper
Mining Company
AM O R Y HOUGHTON
Chairman of the Board,
Corning Glass Works
R O G E R M I L L IK E N
President, Deering, Milliken &
Co. Incorporated
G E R A R D SW O P E
Honorary President, General
Electric Company
R E G IN A L D B. T A Y L O R
Williamsville, New York
R O B E R T W IN T H R O P
Robert Winthrop & Co.

13

T he
N e w Y o r k T r u st
Co m pany
100 B R O A D W A Y
M A D IS O N A V E N U E A N D 4 0 t h ST R E E T • T E N RO CK EFE LLER P L A Z A

COND EN SED STATEM E N T OF C O N D IT IO N JUNE 30, 1947
ASSETS

Cash and Due from B anks...........................................................................................
United States Governm ent O b lig a tio n s..................................................................
Other B onds and Securities........................................................................................
Loans and D is co u n ts .....................................................................................................

$ 1 7 0 ,9 1 8 ,7 0 0 .8 8
261 ,3 6 7 ,2 1 4 .3 7
22 ,3 9 3 ,7 5 8 .6 3
2 4 0 ,5 7 4 ,7 6 6 .6 2

Real Estate B onds and M o rtg a g e s............................................................................
Customers’ Liability for A cceptan ces........................................................................
Interest R eceivable and Other A ssets......................................................................

76,487.15
2 ,225,308.57
2,088,2 34.04
$ 6 9 9 ,6 4 4 ,4 7 0 .2 6

LIABILITIES

C apital.............................................................................................. $ 1 5 ,0 0 0 ,0 0 0 .0 0
Surplus.............................................................................................
35 ,0 0 0 ,0 0 0 .0 0
U ndivided P rofits.........................................................................
13,574,634.82
General R eserve..............................................................................................................
Dividend Payable July 1, 1 9 4 7 ..................................................................................
A ccepta n ces......................................................................................................................
Reserve for Taxes and Other L ia b ilitie s................................................................
D e p o s its .............................................................................................................................

$ 6 3 ,5 7 4 ,6 3 4 .8 2
3,694 ,8 8 4 .9 0
6 0 0 ,0 0 0 .0 0
2,650,162.2 5
4 ,1 0 5 ,3 4 3 .4 9
6 2 5 ,0 1 9 ,4 4 4 .8 0
$ 6 9 9 ,6 4 4 ,4 7 0 .2 6

United States Government obligations carried at $ 12,694,546.83 in the above statement are pledged to
secure United States iGovernment deposits o f $5,791,111-12 and other public and trust deposits and for
other purposes required by law.
TRUSTEES
MALCOLM P. ALDRICH
N ew Y ork
G RAH AM H. A N T H O N Y
President
Colt’ s Manufacturing Company
ARTH U R A. BALLANTINE
Root, Ballantine, Harlan,
Bushby & Palmer
JOHN E. BIERW IRTH
President
ALFRED A. C O O K
Cook, Lehman,
Goldm ark & Loeb
W ILLIAM F. CUTLER
V ice President
American Brake Shoe Company
RALPH S. D AM O N
President
American Airlines, Inc.


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

FRANCIS B. DAVIS, Jr.
Chairman o f the Board
United States Rubber Company
SAMUEL H. FISHER
Litchfield, Conn.
WILLIAM HALE HARKNESS
New Y ork
HORACE HAVEMEYER, Jr.
Executive Vice President
The National Sugar Refining Co.
B. BREWSTER JENNINGS
President
Socony-Vacuum Oil Co., Inc.
J. SPENCER LOVE
President
Burlington Mills Corporation
AD RIAN M. MASSIE
Vice President

H O W A R D W . MAXWELL
New Y ork
H A R R Y T. PETERS
New Y ork
SETON PORTER
President, National Distiller."
Products Corporation
ROBERT C. REAM
President
American Re-Insurance Co.
M ORRIS SAYRE
President
Corn Products Refining Co.
CHARLES J. STEW ART
Vice President
VANDERBILT WEBB
N ew Y ork

M em ber of Federal Deposit Insurance Corporation

Northwestern Banker, July, 1947

14

Warehouse Receipts
L oans Against Inventories
Inventories are valuable assets and they constitute the repaying
power of many manufacturers, processors, producers and dealers.
W here inventories are present, banks have splendid opportu­
nities to employ profitably their resources through new and
larger loans based on them . . . .
And when secured by our Warehouse Receipts inventory loans
are sound.

Long experience, integrity and responsibility stand

behind our operations . . . .
For inventory collateral there is no substitute for a Warehouse
Receipt issued by an experienced bona fide Public Warehouse
Company . . . .

Without obligation, our representative will call on
request and explain how our Field Warehousing serv­
ice provides collateral on inventories on the owner's
location . . . .

ê>t. $aul terminai 123aref)ouôe Co.
ST. PAUL. MINN.
— Iowa Office —
515 Iow a-Des Moines National Bank Building
DES MOINES
TELEPHONE 2-1208
T. C. C A N N O N , DISTRICT M A N A G E R

— Other Offices —
MINNEAPOLIS
N E W YORK

M ILWAUKEE
BOSTON

PHILADELPHIA
DALLAS

MEMPHIS

CHARLOTTE

C H IC A G O

BUFFALO

DETROIT

INDIANAPOLIS

PITTSBURGH

SYRACUSE

A T LA N T A

ALBANY, G A.

JACKSONVILLE

SHREVEPORT

"The only company engaged in Field Warehousing with an office in Iowa"

Nort hwest ern Banker, July, 1947


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

15

Itntir E d ito r

DES MOINES
Oldest Financial Journal West of the Mississippi

The following letters were received
from Northwestern Banker readers.
Your views and opinions on any sub­
ject will be gladly published in this
column.

"Close Thursday Afternoons"
“ At a meeting of the Buchanan County
Bankers Association held in Jesup, Iowa, a
resolution was adopted whereby all the banks
in the county will close at noon for a onehalf day holiday on each Thursday for the
period Thursday, June 5 to Thursday,
October 2, inclusive.
“ The following banks o f Buchanan County
will observe this Thursday-afternoon closing :
Farmers State Savings Bank, Independence;
Security State Bank, Independence; Rowley
Savings Bank, Rowley; Fairbank State
Bank, Fairbank; Farmers State Bank, Jes­
up, and Winthrop and Lamont offices of
Farmers State Savings Bank, Independence.’'
C. E. Stewart, President,
Buchanan County Bankers
Association, Jesup, Iowa.

"The Oldest College"
“ Thank you very much for your letter as
well as your editorial comments in the June
issue of the N o r t h w e s t e r n B a n k e r . Since
I attended Grinnell College, the oldest col­
lege ‘west o f the Mississippi’, it is hardly

(Turn to page 84, please)

ON THE COVER
The picture on the cover shows John
D. Goodloe, chairman of the Recon­
struction Finance Corporation, testify­
ing before the House Banking and Cur­
rency Committee. He told congress­
men that extension of the RFC was
necessary for the “general economic
stability of the country,” and presented
a revised draft of proposed legislation
to continue this branch of government.
Mr. Goodloe was born in Richmond,
Kentucky, in 1908, and his early busi­
ness career was with newspapers in
Richmond, Lexington, and Louisville.
His first appearance in Washington
was in 1931, when he became an at­
torney for the Federal Farm Board.
He later was counsel for the Commod­
ity Credit Corporation. His first con­
nection with the Reconstruction Fi­
nance Corporation was in 1941, when
he became executive assistant to the
-chairman of the corporation.

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

#

52nd Year

•

No. 720

IN THIS JULY, 1947, ISSUE
EDITORIALS
Across the Desk from the Publisher......................................................... 16

FEATURE ARTICLES
Dear E d ito r .... f..................... ....................................................................... 15
Frontispage ................................................. ........................... .................. 19
News and Views of the Banking W orld......................Clifford D e P u y 20
Is Clearing of Checks at Par Unconstitutional?— Legal...................... 21
Minnesota Convention— Story and Pictures.......... H. H. H aynes 22, 23
North Dakota Convention — Story and Pictures....Ben H aller, Jr. 24, 25
About Bankers You Know— H. M. Bushnell.......................................... 26
South Dakota Convention— Story and Pictures................................28, 29
Central States School o f Banking— Story and Pictures............... 34, 35
Installment Loans by Banks.................................. ..Theodore D. M aier 40

BONDS AND INVESTMENTS
Sober, Conservative Long-Term Policy Lauded....Raym ond T rig g er 45

INSURANCE
W hy, W here and H ow to Sell F idelity Bonds............ Jay J. R eynolds 49

STATE BANKING NEWS
M innesota New s .......................................... ....... .......... .................................
Twin City N ew s............................................... ........ E . W . K ie ck h e fer
South Dakota N ew s........... ..... .................................. ......... ...... ........ ...... .......
Sioux Falls N ew s...................................................................................
N orth D akota N ew s..... ........... ......... ......... .......... ..................... .................. .
Nebraska News ............. ...... ........................................ .................... ,...............
Hold Bankers Clinic at Doane College................................................
Omaha N e w s ....................................................
Lincoln Locals ............................................. .......... ....Fred L. F a ssett
Iow a New s ..............
Iow a Group M eeting P ictu res.... ..................................................... 74,
Sioux City N ew s............... ........................................... ........ ....................
Iow a A u ditors E lect Officers.............................................................
Des Moines N ew s................................. ............................. ........................
Conventions ______ _____________ ______________________ ______ ____

53
57
59
59
61
63
63
64
68
73
75
81
82
82
89

IN THE DIRECTORS’ ROOM
A F ew Short Stories to Make Y ou L au gh .................................................. 90
N O RTH W ESTERN

BANKER

527 Seventh St., Des Moines 9, Iowa, Telephone 4-8163
RALPH W. MOORHEAD
CLIFFORD DE PUY
Associate Publisher
Publisher
BEN J. HALLER, JR.
MALCOLM K. FREELAND
HENRY H. HAYNES
A ssociate Editor
A ssociate Editor
Editor
HAZEL C. HADLEY
SADIE E. WAY
ELIZABETH COLE
Circulation Department
Auditor
A dvertising Assistant
PAUL W. SHOOLL
Field Representative

JOSEPH W. FRANKS
Field Representative

NEW YORK OFFICE
Frank P. Syms, Vice President, 505 Fifth Ave., Suite 1806

MUrray Hill 2-0326

DE PUY PUBLICATIONS: Northwestern Banker, Underwriters Review,
Iowa-Nebraska Bank Directory.
Northwestern Banker, July, 1947

16

We certainly believe these points are well made,
Mr. Jones, but we also feel that a better mental
attitude and better business psychology will also
be helpful in achieving a continuance of good
business and prosperous conditions.
Thank you, Mr. Jones, for your prediction of
better times ahead and personally we agree with
what you say.

j b e a l c M a m j, " V e í a "

<7\ u m a n :

Apparently you think it is more blessed to veto
than to cooperate with members of Congress.
First you veto the tax bill and then you veto the
labor bill. The tax bill did not become a law be­
cause your veto was sustained, but with the labor
bill, your veto was overridden by a vote of 331
to 83 in the House and by a vote of 68 to 25 in the
Senate.
In your letter to Senator Alben Barkley which
you issued just before the labor vote was taken on
your veto message you said:— “ I wish to reaffirm

A cro ss th e D esk
F ro m th e P u b lis h e r
2 > ea ^ i j)e £ £ e flo -n e ^ :

A number of prominent economists and a few
industrialists have been saying that if we have a
depression, we will talk ourselves into it, but we
are glad to have you say “ I do not believe we can
talk ourselves into a depression. ’ ’

As former Chairman of the Reconstruction
Finance Corporation, your judgment on the busi­
ness outlook is certainly worth considering.
You gave several reasons why you, “ see no
possibility of a depression in the near future, ’ ’ and
cited 6 specific reasons why you believe business
should continue to prosper.
1. “ There is urgent necessity of construction
work of every character.
2. “ Most public utilities have improvement or
expansion programs.
3. “ Railroads, highway construction, public
schools, hospitals and civic improvements gen­
erally are far behind.
4. “ Industry is having to replace outmoded and
inefficient buildings and equipment.
5. “ Altogether, there is so very much to be
done, which necessarily has been neglected for the
past half dozen years, that business should be good
for quite some time.
6. “ Furthermore, our hanks and financial insti­
tutions are in excellent condition and there is, of
course, no lack of credit from private sources for
most purposes.”
Northwest ern Banker, July, 1947


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

my sincere belief that the labor bill will do serious
harm to our country. ’ ’

Certainly, Mr. President, when it comes to
doing “ serious harm to our country,” the AYagner
Labor Act has given us a pretty sad and sorry
example of how the affairs of labor should be run.
For your information, Mr. Truman, may we
suggest that you take a look at the strike record
of the past 3 years in this country. Here is the
“ Strike Record” and “ Man Days Idle” for the
last 3 years as reported in “ Labor Review” pub­
lished by the United States Department of Labor,
Washington, I). C.
Strikes

1944— 4,694
1945— 4,616
1946— 4,335

Man Days Idle

8,336,000
30,307,000
107,475,000

After looking at these figures showing “ Man
Days Idle ’ ’ which increased from over 8 million in
1944 to over 107 million in 1946, you must admit
there was something wrong with the labor laws as
they did exist, and that something should be done
about them.
The new Taft-Hartley Bill is now a law and
no-one says it is perfect, not even its sponsors, but
they do say, that where injustices may occur that
the law can be modified, changed and amended.
If you vetoed the “ Labor Bill” because you are
“ after votes” for your 1948 campaign, may we
remind you that much of the public and also
many labor union members favored legislation
which would put a ‘ ‘ curb ’ ’ on some of the activi­
ties of the labor leaders.
Here are the Gallup Poll reports to prove our
points:

17
1. Over 66 per cent of the people favor the open
shop as opposed to the closed shop.
2. More than 84 per cent of the public and 80
per cent of the union members favor the idea of
making unions financially accountable, by report­
ing the money they collect and spend.
3. Featherbedding or make-work policies are
opposed by the public, and in the recent 5 to 3
Supreme Court decision the Lea law or “ antiPetrillo” law was upheld, thus preventing radio
stations from being compelled to hire “ standby
musicians” when they were not needed for the
production of musical programs.

“ President Veto,” you have misjudged the
temper of the times. People want fair play on
both sides—on the side of labor and capital.
The American workman is the highest paid in
the world and we are glad of it because our pros­

perity depends on his purchasing power, but the
abuses of labor and capital must not be tolerated.
Today the percentage of wages and salaries to
national income is about 70 per cent and the per­
centage of dividends to national income is about
2.8 per cent.
So, “ Mr. Veto,” we say you might as well en­
joy the remaining months in the White House as
best you can, because there will be a new occupant
for the Presidency in November, 1948.

2>ea^i Q atU en. 'Udehio- ^ apfbaten,ena:
Since we are now endeavoring to promote more
friendly relations with Argentina (we are suck­
ers for cooperating with crooks), your speech
which you made in Buenos Aires is most reveal­
ing.
We understand that the Argentine government
asked you to leave the country within 24 hours
after the speech was made, but nevertheless it
indicates what you thought of democracy and the
United States when you said, “ Democracy is de­
funct and dead. It is a ‘ madame’ in a house of
prostitution. Mussolini was the hero of all rightthinking people. W e should give a salute to 3
great men, Hitler, Mussolini and Franco.”

We understand, Father Zappaterena, you were
at one time Benito Mussolini’s confessor, and if
he really told you the truth when he confessed, we
should think that would be enough to convince
you that a dictatorship such as he carried on in
Italy could not succeed in the long run.
As far as democracy being dead and defunct is
concerned, it still seems to be the one form of
government which is now and has in the past
produced the greatest wealth for the greatest
number.
When it comes to comparing democracy to a
‘ madame’ in a house of prostitution, we are sorry

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

that we have not had enough experience with
‘ madames’ to debate this subject, so w e’ll simply
have to take your word for this comparison.
However, Father Zappaterena, we would like
to present for your consideration what we think
are the 4 greatest political and piratical prosti­
tutes of all times.
1. Adolph Hitler.
2. Benito Mussolini.
3. Emperor Hirohito.
4. Francisco Franco.

We might say that perhaps the time will come
when your friend Josef Stalin will be included in
the list.
Anyway, democracy is not dead and if for any
reason it should die, it will die not alone from
forces without, but because of vipers and dema­
gogues who destroy it from within.

jb e a n , / U la n S f i b a u l :

As President of the Federal Reserve Bank of
New York, we read with considerable interest
your recent article on the policy of the Reserve
system since the war.
One of your statements which we think should
be further emphasized and given additional con­
sideration is this:
“ It is high time that we again took stock of
the world situation and of our position in it, for
admittedly the schedules originally set down for
the post-war period are not being met. It is re­
assuring to know that the Government has taken
cognizance of this problem, and that the Secre­
tary of State has called for a world-wide survey of
economic conditions to determine what are the
present demands upon the United States for re­
construction aid. In the light of that survey we
shall have to determine how those demands can
best be met, and what will be the repercussions in
our domestic situation.”

If a country refuses to cooperate with the
United States in our attempt to establish a plan
where self determination is the outstanding fac­
tor and refuses to follow this program, then it is
absurd for us to pour billions of dollars down a
political rat hole.
AVe are now spending our Federal money at the
rate of $4,280,000 per hour. Today taxes take
25 per cent of our income while formerly 5 per
cent was sufficient to cover our expenses.

Northwestern Banker, July, 1947

18

Central

National Bank and Trust Company
Fifth and Locust Street — Des Moines

STATEMENT OF CONDITION AT CLOSE OF BUSINESS JUNE 30, 1947

ASSETS
Cas h and due f r o m
Federal Reserve and
other banks...............$25,704,746.67
United States Govern­
mental Securities . . 27,039,464.24
Obligations of United
States Governmental
Agencies ...................

1,754,835.67 $54,499,046.58

Municipal Securities..............................

7,117,228.88

Market Bonds .........................................

747,838.27

Loans and Discounts..............................

26,897,636.26

Overdrafts

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

8,805.58

Stock Federal Reserve Bank.............

75,000.00

Accrued Interest Receivable...............

207,237.40

Prepaid Insurance Premiums and
Other Expense .....................................

20,992.12

Bank Premises and Equipment.....................................524,989.74
T O T A L ............................................ $90,098,774.83

D I R E C T O R S
G. E. B R A M M E R
Bram ner, Brody, Charlton, Parker
& Roberts
E. F. B U C K L E Y
President
A. T. D O N H O W E
Vice-President
HARRY GOLDM AN
President, C. C. Taft Co.
W M . J. G O O D W I N
Chairman, Board of Directors
R O B E R T K. G O O D W IN
President, Redfield Brick & Tile Co
H . F. G R O S S
Chairman, Iowa Mutual
Tornado Insurance Assn.

LIABILITIES
Common Stock ...........$ 1,250,000.00
Surplus ..........................

B. R E E S J O N E S
President, Town Mutual Dwelling
Insurance Company

1,250,000.00

Undivided Profits . . .

786,267.30

Other Reserves

812,362.36 $ 4,098,629.66

........

Reserves for Taxes, Interest
and Other Expense.............
Discount C o lle cte d .................
Deposits

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

TOTAL

GUY

186,151.44
179,564.43
85,634,429.30
$90,098,774.83

U. S. Governm ent and other securities carried
at $6,510,894.67 are pledged to secure U. S.
W ar Loan Deposit account. Public Funds, and
Trust Department Funds.

i
Northwest ern Banker. July, 1947


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

E. L O G A N

W A L T E R E . M U IR
President, W indow Devices,

Inc.

G EO R G E A. P E A K
Real Estate
J U L IA N A. P E V E R IL L
President, H udson Jones A uto
W A L T E R L. S T E W A R T
Gibson, Stewart A Garrett
F R A N K R. W A R D E N
Vice-President

★
Member Federal Deposit
Insurance C orporation

Co.

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

Northwest ern Banker, July, 1947

20

Netm and Vieim
OF THE BANKING WORLD
By Clifford De Puy

1NTHROP W. ALDRICH, chair­

W

man of the Chase National Bank
of New York, and president of the
International Chamber of Commerce,
in speaking before their meeting in
Montreux, Switzerland, said, “Europe
does not need to fear that an American
postwar corrective recession will de­
generate into a depression. The United
States is well aware of its strategic
role in the world economy, of the need
to have an economy free from exag­
gerated boom and deep depression, of
the need to import the products of
other nations, and of the need to share
in the economic rehabilitation of the
world.
“To adopt state planning and con­
trols in an effort to escape recession
is to substitute stagnation for progress.
The economy becomes overburdened
by the unproductive labor of a grow­
ing multitude of government officials
and becomes entangled in the web of
bureaucratic control.”
Ashton Carhart, vice president of
the First National Bank of Minneap­
olis, visited his mother at Sheffield,
Iowa, last month and stopped at the
N orthwestern B anker office to say
hello on his way back home.
Mr. Carhart graduated from Grinnell and later received his degree from
the Harvard Business School in 1929
and has been associated with the First
National Bank since that time.
Solomon A. Smith, president of the
Northern Trust Company of Chicago,
is a great believer in music and, in
fact, his ofvn institution has a mixed
chorus composed of 75 of the bank’s
staff which recently held its annual
spring concert at Chicago’s Eighth
Street Theatre.
In addition to the concert, the chor­
us was heard over WGN on “ The
Northerners” which is the bank’s 16
year old radio program.
Swayne P. Goodenough, president of
the Financial Advertisers Association
and vice president of the Lincoln
Rochester Trust Company of New
York, in a recent letter to members
of the association made this very im­
portant statement: “Most of our prob­
lems in business and banking, we are
coming to realize, have to do chiefly
with human relationships. What peo­
ple think is extremely important to us.
The effort to guide that thought along
Northwest ern Banker, July, 1947


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constructive lines, making it an asset
rather than a liability, has become the
objective of intelligent leadership in
banking and business.”
Halstead M. Carpenter, cashier of
the Monticello State Bank, Monticello,
Iowa, and his committee really fixed
up a “liquid emporium” at the Anamosa Country Club when Group 8 met
in that city.
At the extreme left of the picture is

‘ ‘ M ilk Shakes Also Served ’ ’

H. W. Stuhler, vice president of the

Monticello State Bank, and not Presi­
dent Harry Truman as you might
think. Also, with his back to you and
to the right of the bar is Fred D. Cum­
mings, assistant cashier, Drovers Na­
tional Bank, Chicago. Although the
cow is wax, we assume that “chocolate
milk shakes were also available.”
Horace C. Flanigan, vice president

of the Manufacturers Trust Company
of New York, has been elected vice
chairman of the board of directors.
Mr. Flanigan joined the bank in 1931
as a director and vice president. He
is a graduate of Cornell University
and is a member of the university’s
board of trustees and also serves on
the finance committee.
John C. Wright, president of the La
Salle National Bank, and Charles C.
Kuning, vice president of the Ameri­
can National Bank and Trust Com­
pany, both of Chicago, dropped in for
a visit at the offices of the N or th w est ­
ern B anker when they were in the
city last month attending the opening
of the enlarged banking quarters of
the Central National Bank and Trust
Company.

Carl K. Withers, president of the
National Bank Division of the Ameri­
can Bankers Association, reports that
national banks in the United States
put back 66 per cent of their total
1946 net profits, or some $324,000,000,
into capital.
The nearly 5,000 national banks in
the 48 states and the District of Colum­
bia had net profits of $494,000,000 last
year, of which only $170,000,000 was
paid out in dividends.
Total additions to capital by these
institutions amounted to some $493,000,000, only slightly less than net
earnings, which brought the total capi­
tal structure of the national banking
system to $5,137,000,000 at the yearend.
Max von Schrader, president of the
Union Bank and Trust Company of
Ottumwa, went through two floods last
month and said that if he had to face
a third one he was going to build an
ark and follow the life of Noah.
In a letter to the N orthwestern
B anker Max said, “During the first
flood the water got up to Second Street,
which is the street the bank is on, and
we had two feet of water in our base­
ment.
“However, we soon got things dried
out and came through the last flood
with no water in our basement.
“ The damage to south Ottumwa,
however, is terrific, and it will be
many years before Ottumwa recovers
from the disaster.”
Hugh C. Danforth, cashier of the
First National Bank of Yankton, South
Dakota, returned the middle of June
after flying out to Los Angeles in order
to drive his wife and two daughters
back from Laguna Beach where they
had spent the winter.
Charles Danforth, who is a director
of the Mississippi Valley Association
and secretary-treasurer of the Missis­
sippi Valley Association, appeared in
Washington recently before the Sub­
committee of the House of Representa­
tives to testify in favor of the Missouri
Valley Development Plan.
James H. Clarke, assistant vice presi­
dent of American National Bank and
Trust Company of Chicago, has been
elected vice president of the bank, and
J. M. Herrmann, personnel director,
and C. A. Hemminger, public relations
(T u rn to page 86, please)

21

L E G A L

is 0 ic a r ia tj o f Checks ut
Par i
Jnconstitution
The Answer is Based on a Recent
Supreme Court Decision in Nebraska

Q , The state of Nebraska enacted
a law which provided, generally speak­
ing, that all checks drawn on any
state bank there should be cleared at
par by the bank on which they were
drawn. Several of the state banks
which had been making a small charge
for clearing checks drawn on them
through out-of-town banks sought to
have the law declared unconstitutional
on various grounds, one of them being
that it caused the taking of property
without due process of law. AVas the
statute unconstitutional?
No. The Nebraska Supreme Court
in a recent decision involving the leg­
islation in question held that the law
was constitutional as a valid exercise
of the police power of the state and
that it did not deprive the banks of
property without due process of law
in that it did not compel them to make
the clearances without compensation
but simply told them that, if they did
clear checks, they were not privileged
to charge for their work.

This and Other Timely Legal
Questions Are Answered
by the

LEGAL DEPARTMENT
and used it to pay the loss. In obtain­
ing the loan Smith told Brown how
he was going to use the money. Aside
from this Brown had no knowledge,
or connection with, the gambling
transaction. AVould Brown’s know­
ledge of the utilization of the money
prevent him from recovering a judg­
ment at law for the loan?

No. It is no defense to an action to
recover a loan that the defendant bor­
rowed the money to use it in paying
a loss incurred in illegal gambling,
and that the plaintiff knew that fact,
if the plaintiff did not otherwise par­
ticipate in or further the gambling

enterprise. Decisions so holding may
be found in Illinois, Kentucky, Louis­
iana, Minnesota, Mississippi, Missouri,
Ohio, the federal courts and other jur­
isdictions. There is an early Pennsyl­
vania case to the contrary.

Q.

Suppose that, in the preceding
question, Smith had borrowed the
money from Brown before the loss
and had told him that he was going
to use it in gambling. Suppose further
that BroAvn had no other knowledge
regarding the matter and did not par­
ticipate otherwise in it in any way.
Could Brown recover as a general rule?

Yes, as a general rule. The holdings
in these situations are similar to those
above and state it is no defense to an
action to recover a loan that the de­
fendant borrowed the money intend(Turn to page 69, please)

In d ep en d en t Mtnnhevs

Q

. Morton, a retired Iowa banker,
conveyed all of his funds and property
to himself as trustee under a trust
instrument which provided, osten­
sibly, that such property and funds
would be held for the benefit of his
wife and children. In the document
it was stated, however, that it was
wholly discretionary with him as to
whether the beneficiaries should re­
ceive anything from the corpus or
income of the trust. AVas a valid and
enforceable trust, relationship created
in such circumstances?

No. Where the amounts, if any,
which the beneficiaries are to receive
under a purported trust are wholly
discretionary with the alleged trustee,
the trust is too uncertain as a matter
of law to be enforceable and it there­
fore is not valid.

Q . Smith lost $5,000 in an illegal
gambling transaction. He borrowed
that amount from Brown, a banker,

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NEW OFFICERS INDEPENDENT BANKERS ASSOCIATION elected at the
annual meeting in St. Louis included left to right: President, L. B. McBride,
first vice president First National Bank, Fort Collins, Colorado; 1st Vice Presi­
dent, Leo W. Seal, second vice president Hancock Bank, Bay St. Louis, Miss.;
2nd Vice President, E. E. Manuel, president George State Bank, George, Iow a;
Secretary, Ben Du Bois, Sauk Centre, Minn.; and Treasurer, Harry Lee, Bank of
Long Prairie, Minnesota.
About 150 registered for the convention which was a very successful gathering.
Northwest ern Banker, July, 1947

22

John I arlnn dev it end.s
31inné sota A ssoeiation
Over 1,000 Attend 57th

Convention
By BEN HALLER, JR.
Associate Editor
THE NORTHWESTERN BANKER

OHN CARLANDER, president of

Hoese, president, Security State Bank.

the State Bank of Faribault, was
installed as president of the Min­
nesota Bankers Association at the 57th
annual convention which was at­
tended by over 1,000 bankers last
month in St. Paul. He was advanced
from the vice presidency and succeeds
A. W. Sands, president of the Western
State Bank in St. Paul.
Other association officers elected
were: Vice president, M. O. Grangaard,
vice president, First National Bank,
Minneapolis; treasurer, C. E. CadAvell,
president, First National Bank, Farm­
ington, and secretary, Robert Pye,
Minneapolis:
Elected to the Council of Adminis­
tration were: D. Fay Case, president
Security State Bank, Cannon Falls;
W. A. Kramer, treasurer Farmers &
Mechanics Savings Bank, Minneapolis;
G. A. Redding, president Windom State
Bank, Windom, and George N. Reppe,
president and cashier First State Bank,
Grand Meadow.
Retiring President Sands was named
a member of the executive council of
the A.B.A. for a three year term fol­
lowing adjournment of the A.B.A. con­
vention this fall. H. C. Matzke, presi­
dent, City National Bank, Duluth, was
selected as a member of the A.B.A.
nominating committee to serve at the
national convention this fall, and Art

Glencoe, was chosen alternate mem­
ber.
State vice presidents to serve one
year from date of the annual A.B.A.
meeting this fall are: National Bank
Division, Don E. Crouley, vice presi­
dent, Northwestern National Bank,
Minneapolis; Savings Division, John
de Laittre, vice president and treas­
urer, Farmers and Mechanics Savings
Bank, Minneapolis; State Bank Divi­
sion, Guy S. Bacon, president, Empire
State Bank, Cottonwood, and Trust
Division, Paul Ryerson, vice president,
First National Bank, Minneapolis.
A splendid group of speakers dis­
cussed subjects covering banking from
the internal, local, public relations
and national angles.
As a fitting climax, Dr. George W .
Crane, physician and psychologist
from Northwestern University, ad­
dressed the more than 1,100 attending
the banquet on the topic, “America
Needs More Horse Sense.” In a
straightforward, informal manner that
kept his audience smiling and de­
lighted, Dr. Crane gave logical support
to his assertions that to accomplish
the role of bringing about internation­
al peace, national unity, greater in­
dustrial production and all forms of
local progressive life, Americans must
first learn a few fundamentals of plain

J

old horse sense, which all leads to
working at the task of developing a
happy home life for one and all. When
this is accomplished, Dr. Crane said,
then a more satisfactory social life,
and consequently, more satisfactory
industrial progress will be made.
After Morris M. Townsend, director
of the U. S. Savings Bond Division, re­
viewed the “ Bond a Month Plan” cur­
rently being sponsored nationwide by
banks, the next speaker, C. W. Green,
told Minnesota bankers the how’s and
why’s of “Public Relations and Its
Part in Banking.” Mr. Green is direc­
tor of the public relations council for
the A.B.A. He told the bankers that
it doesn’t make any difference what
size town or city they live in, a public
relations job can be done on every
population level. The subject was
broken down into three parts: 1. What
do people believe? 2. Why do they
believe what they do? 3. How can
we change their opinions.
He gave substantiating evidence
from surveys to show the American
public has many completely false ideas
about banking and then told bankers
how they could promote better pub­
lic relations for their bank and the
banking industry by starting with
children in schools and teaching them
thrift; telling people what banks do
(Turn to page 51, please)

A t th e M in n eso ta C o n v e n tio n ---- >
MORE THAN 1,000 BANKERS AND THEIR WIVES
jammed the Hotel St. Paul last month to attend the 57th
annual convention of the Minnesota Bankers Association. On
the opposite page are a few of those present at the meetings.
Reading from left to right in each picture they are:
1. New officers o f the Association— C. E. Cadwell, president
Hirst National, Farmington, treasurer; A. W. Sands, president
Western State Bank, St. Paul, retiring president; John Carlander, president State Bank of Faribault, new president;
M. O. Grangaard, vice president First National, Minneapolis,
vice president, and Robert E. Pye, secretary Minnesota Bank­
ers Association.
2. T. F. Spreiter, president Western State Bank, Marshall;
Mrs. L. L. Spreiter, and L. L. Spreiter, executive vice president
Security State Bank, Hector.
3. E. D. Van Rhee, national bank examiner, Minneapolis;
C. S. Morton, vice president State Bank of Princeton; R. E.
Rodge, president State Bank of Princeton, and C. A. Lauritsen, president Citizens State Bank, Tyler.
Nort hwest ern Banker, July, 7947

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Federal Reserve Bank of St. Louis

4. Dick Peavey, assistant cashier Stockyards National, South
St. Paul; Gay, Klatt, cashier Ogilvie State Bank, and C. J.
Gislason, assistant cashier Farmers State Bank, Lyle.
5. P. D. Beaulieu, president Austin State Bank; T. J.
Beaulieu, Graceville; A. H. Haakenson, vice president Austin
State Bank, and H. G. McConnell, vice president Federal Re­
serve Bank, Minneapolis.
6. H. J. Olson, vice president and cashier Western National,
Duluth; C. W. Berglund, vice president Bank of Commerce and
Savings, Duluth, and Charles H. Zabel, director Peoples State
Bank of Plainview and cashier Bank o f Boyceville, Wisconsin.
7. G. J. Johnson, vice president American National, St. Paul;
S. R. Hammer, executive vice president Exchange State Bank,
H ills; C. P. O’Brien, acting assistant manager R.F.C., Minne­
apolis, and S. O. Mithum, president Exchange State Bank,
Hills.
8. Mrs. John Carlander, Faribault; Mrs. Robert E. Pye,
Minneapolis, and Mrs. Frank Powers, whose husband is presi­
dent Kanabec State Bank, Mora.


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Federal Reserve Bank of St. Louis

<>5

24

it ism a rri»
Scene o f
N o rth D a k o ta C o n v en tio n
F. A. Foley, of Rolla, Is Elected President
By HENRY H. HAYNES
Editor
THE NORTHWESTERN BANKER
A. FO LEY, president, Rolette
County Bank, Rolla, was elected
* president of the North Dakota
Bankers Association at its annual con­
vention held in Bismarck last month.
Mr. Foley succeeds C. W. Burges, cash­
ier of the Security National Bank of
Edgeley, to that office.
Arne A. Gregor, president of the
Farmers State Bank, Leeds, was
named to the office of vice president
of the association, while the new treas­
urer elected this year is H. D. Crosby,
vice president and trust officer of the
First National Bank, Fargo.
About 150 North Dakota bankers
were registered at the meeting, with
more than 200 attending the banquet.
The meeting opened with a pre-con­
vention stag party preceding the day
of convention sessions, and a dance
was held following the annual banquet,
to conclude a day of seriousness and
fun. Minot was selected as the con­
vention city for 1948.
In his address to the members, Presi­
dent Burges asked bankers of North
Dakota to aid veterans in every way
possible—give them advice and loan
them money when such loans are with­
in the limits of good banking. Bank­
ers should be active in soil conserva­
tion programs, he said. Mr. Burges

F

urged cooperation with the ABA in its
several projects, stating that 75 per
cent of the members in the American
Bankers Association are small-town or
country bankers.
As chairman of the association pub­
lic relations committee, Clarke Bassett,
president of the Merchants National
Bank, Fargo, told of what his commit­
tee had accomplished during the past
year, such as sponsorship of rural
clubs of various kinds, helping the
banker keep contact with his custom­
ers and prospects, cooperation with the
local press, and the important elements
of contact with customers by em­
ployes. His report was followed by
an address by C. W. Green, director
of public relations for the American
Bankers Association, who told bank­
ers the many things they can do in
their communities to improve their
relations with the public.
While there will be some recession
following our war prosperity, any de­
pression condition like occurred in the
’30s is very remote, is the opinion
of Fred G. Aandahl, governor of North
Dakota, who addressed one of the ses­
sions. People of North Dakota, said
the governor, are going to spend some
of their present savings for additional
goods and services when these become

fully available, but will still be cau­
tious about letting go of all of their
accumulated cash.
At the election of North Dakota offi­
cers of the American Bankers Asso­
ciation, C. W. Burges was named to
the executive council; Fred Irish, First
National Bank, Fargo, member nomi­
nating committee, and C. C. Wattam,
association secretary, alternate; E. D.
Saltzman, First National, Bismarck,
vice president, national bank division;
I. G. Fisher, Liberty National Bank,
Dickinson, savings division; Harry
George, Bank of Steele, savings divi­
sion, and Frank Scott, Merchants Na­
tional, Fargo, trust division.
With 43 years as a country banker,
C. W. Bailey, president of the Ameri­
can Bankers Association, says he gets
to his bank at seven o’clock each morn­
ing, and there is a staff meeting called
each morning for seven thirty. Other
banks please note. The farmer, Mr.
Bailey said, is the most important man
in America—he should maintain a re­
serve at all times, and the banker
should help the farmer to maintain a
reserve. “Let’s make our trade areas
better because we are better bankers,”
said Mr. Bailey.
Resolutions adopted by North Da(T u rn to page 61, please)

A t th e N orth tPahota C o n v e n tio n ---- ►
CONVENTIONEERS pictured on the opposite page were
among those attending the 1948 annual convention of the North
Dakota Bankers Association. Beading from left to right they
are :
1— —Arne A. Gregor, president Farmers State Bank, Leeds, and
new vice president o f the North Dakota Association; and F. A.
Foley, president Bolette County Bank, Bolla, and new president
of the Association.
2—
C. W. Bailey,, president o f the American Bankers Associa­
tion, congratulates another “ G. W. ” on completion o f a suc­
cessful term o f office— C. W. Burges, cashier Security National
Bank, Edgeley, and retiring president of the North Dakota
Association.
3—
Francis G. Ross, vice president Chase National Bank,
New Y ork; Larry Olson, vice president Midland National Bank,
Minneapolis; and Fred J. Norton, assistant cashier Chase
National Bank.
4—
M. O. Grangaard, vice president First National Bank,
Minneapolis, and vice president Minnesota Bankers Association;
Northwest ern Banker, July, 1947


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and A. F. Fir, assistant cashier Peoples & Enderlin State Bank,
Enderlin.
5—
J. I. Hegge, president Northwestern State Bank, Hills­
boro; Fred G. Aandahl, governor o f North Dakota; and J. C.
Hoffert, president Foster County State Bank, and a member
of the North Dakota banking board.
6—
N. I. Roop, vice president First National Bank; George
M. Thompson, assistant manager credit department Bank o f
North Dakota; H. C. Bowers, manager Bank o f North Dakota;
T. W. Sette, manager credit department, Bank o f North Da­
kota; all of Bismarck, and members of the local convention
committee.
7—
R. S. See, North Dakota banking department, Bismarck;
Eva Goetz, Bank of North Dakota, Bismarck; and Merrill Predmore, director agricultural section, U. S. Treasury saving bond
division, Washington, D. C.
8—
B. A. Helland, cashier First State Bank, Arthur; A. H.
Gilbertson, cashier Security State Bank, Hunter; and F. B.
Heath, president Dakota National Bank, Bismarck, and a mem­
ber o f the general convention committee.


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Federal Reserve Bank of St. Louis

:

H

i

%

26

A b o u t H a n k ers You K n o w

Four Officers
S.
Sloan Colt, president of Bankers
Trust Company, New York, announced
the promotion of Paul Bonynge, Jr.,
from assistant treasurer to assistant
vice president.
At the same time he announced the
election to assistant treasurer of C. W.
Kreider, Everett Orr, Jr., and John
Henry Schroeder.

Quarterly Dividend
The 198th consecutive quarterly divi­
dend of The Northern Trust Company,
Chicago, Illinois, was declared by the
directors. This dividend of $4.50 was
payable on July 1, 1947, to stockhold­
ers of record June 17, 1947.

Correspondent Officer
Mercantile-Commerce Bank & Trust
Company, St. Louis, Missouri, has an­
nounced the appointment of John F.
Wilkinson as assistant vice president
in the correspondent banks depart­
ment of the bank.
Following graduation from the Uni­
versity of Oklahoma in 1923, Mr. Wil­
kinson entered the investment busi­
ness in St. Louis, joined the investment
division of Mercantile-Commerce in
1930, covering southern and southwest­
ern states until 1941 when he was ap­
pointed sales manager of the bond
department.
In his new connection with the cor­
respondent banks department, Mr.
Wilkinson will work primarily in the
southern states.
H. M. BUSHNELL
President, United States National Bank, Omaha
“ Keen intellect, and natural business ability’ ’

ER BERT M. BUSH NELL, president of the United States National Bank
of Omaha, is a man of quiet demeanor, keen intellect and an abundance
of natural business ability. All three of these qualities have won a host of
friends for him and the United States National Bank. One of Mr. Bushnell’s
pleasures comes from meeting people and it soon becomes apparent that
along with his quiet manner, he possesses a rare sense of subtle humor.

H

Mr. Bushnell has been executive head of his bank since 1937. Now in
its ninety-first year of service, the United States National Bank’s growth has
kept pace with increasing business activity in the midwest and at last report
the bank’s resources amounted to $74,000,000.
Herbert Bushnell was born in Lincoln, Nebraska, July 1, 1893. He at­
tended public schools, later receiving his law degree from the College of
Law at the University of Nebraska. In 1919 he joined the United States
National, successively moving from the investment department up to the
position of trust officer, a vice presidency and finally the executive vice
presidency before being elected president. He has been a director since 1928.
Phi Gamma Delta fraternity numbers Mr. Bushnell among its distin­
guished members. His attention to civic activities has been outstanding
and among the more notable are his positions as Governor of the Knights
of Ak-Sar-Ben, treasurer and a member of the executive committee of the
Omaha Taxpayers Association, and member of the executive committee of
the Greater Omaha Association. He is a director of the Chicago, Burlington
& Quincy Railroad Company, the Omaha Printing Company and Roundup
Coal Mining Company, Roundup, Montana.
Mr. Bushnell is a registered Republican. He is a member of the Omaha
Country Club, Omaha Club and Omaha Athletic Club.
Northwest ern Banker, July, 1947


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Transfer
The directors of The First National
Bank of Chicago, at a recent meeting
directed the transfer of $5,000,000 from
undivided profits to surplus account.
The capital of The First National Bank
of Chicago is $60,000,000, and with this
transfer the surplus account is $65,000,000.

Dividend
Directors of Union Bank & Trust
Company of Los Angeles, California,
at their June meeting declared the
regular quarterly dividend of $1.50 per
share, payable July 1st to shareholders
of record June 23rd. According to
President Ben R. Meyer, this is the
123rd in a series of dividends paid
uninterruptedly since March, 1917.

New Officers
Directors of California Trust Com­
pany, Los Angeles, owned by Cali­
fornia Bank, recently elected F. K.
Pollitt assistant trust officer and named
C. J. Fuglaar treasurer. J. T. Matushek and F. J. Boulton were elected
assistant secretaries and G. F. Rennie
was elevated to assistant auditor.

27

STATEMENT
OF

CONDITION
June 30, 1 9 4 7
RESOURCES
Loans

and

D isc o u n ts.............................................................................................

Overdrafts

$ 22,900,873.31
583.39

......................................................................................................................
B o n d s.................................................................................

9,652,314.82

Other Bonds Bought for In ve stm en t............................................................

1,431,228.07

State and M un icipal

Stock in Federal Reserve B a n k ........................................................................

150,000.00

Bank

436,500.00

Office

Furniture

B u ild in g .............................................................................................

and

F ix tu res..........................................................................................

1.00
324,937.45

Incom e Earned B ut N ot C ollected ...................................................................
Bonds of U nited States and Government A g en cies. .$63,257,839.80
D ue from Federal Reserve B a n k .......................................

20,424,493.97

Cash

26,151,972.90

and

Sight

E x ch a n g e.....................................................

109,834,306.67
$144,730,744.71

LIA B IL IT IE S
Capital

Stock

Surplus

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

$

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

U ndivided

2,500,000.00

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

1,966,585.02

C ontingencies........................................

889,495.61

Accrued Taxes, Interest and Other Expenses

441,607.25

Reserve

D ividend
U.

S.

Profits

2,500,000.00

for

D eclared

Government

D eposits

and U n p a id ............................

50,000.00

D e p o s its .................................................$

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

1,924,092.92
134,458,963.91

136,383,056.83
$144,730,744.71

The Omaha
National Bank
Federal

Deposit


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Federal Reserve Bank of St. Louis

Member
Insurance

Co rp o ratio n
N orthw estern Banker. Ju ly, 1947

28

South Ha hot a Hankers Elect A . Is. Ha hi
350 Register for 55th Annual Convention
ROM start to finish, the 55th annual
convention of the South Dakota
FBankers
Association, held in Sioux
Falls last month was replete with
practical ideas for better bank man­
agement. If any one word could be
singled out to sum up the ideas of­
fered it would be “work.”
About 350 bankers registered for
the convention, which included an eve­
ning of entertainment followed by a
full day of business meetings. At the
concluding session, A. E. Dahl, presi­
dent, Rapid City National Bank, Rapid
City, was elected president, and J. M.
Lloyd, vice president, American State
Bank, Yankton, was elected vice presi­
dent.
Members of the executive council
named at this meeting were: Group 1
—B. R. Laird, vice president and cash­
ier, Security State Bank, Tyndall (3year term); Group 2-—T. S. Harkison,
president, National Bank of South Da­
kota, Sioux Falls (3-year term); Group
3—P. V. Olson, manager, Chamberlain
branch, Northwest Security National
Bank (2-year term); Group 5—M. J.
Twiss, cashier, Security State Bank,
Doland (2-year term), and Group 6—
Charles W. Christen, president, First
State Bank, Roscoe (1-year term, re­
elected).
At the executive council meeting di­
rectly afterwards, George M. Starring
was reappointed secretary-treasurer of
the association.
State A.B.A. officers named were:
Member nominating committee, H.
N. Thomson, vice president, Farmers
& Merchants Bank, Presho; alternate,
A. G. Berger, cashier, Deuel County
National Bank, Clear Lake. Vice presi-

dents National Bank Division, J. A\T.
president, Commercial
Trust and Savings Bank, Mitchell;
State Bank Division, F. A. Olson, presi­
dent, Bank of Toronto; Trust Division,
John P. McQuillan, vice president and
trust officer, Northwest Security Na­
tional Bank, Sioux Falls.
Bryant, vice

. Pay Debts by Work

In delivering his address of wel­
come, C. A. Christopherson, chairman
of the board, Union Savings Bank,
Sioux Falls, struck the keynote of the
convention when he said, “The only
way to pay off our debt is in the same
way our forefathers, the pioneers of
this country did—by work.”

In his talk “A New Selling Job for
Business,” Dean R. F. Patterson from
the University of South Dakota busi­
ness school, told bankers that business
men have developed a balancing of
rights and duties of business the past
few decades, all within the framework
of capitalism. Labor unions have real­
ized their greatest growth in more
recent years, he said, and have devel­
oped some sense of balancing of their
rights and duties also. The next thing
we must do, he said, is get big govern­
ment to realize it is working for the
people, not vice versa.
Bill Busk of the Milbank high school,
delivered his contest winning speech,
“ Soil Erosion’s Victim,” reviewing soil
damage done in past years, the out­
look for farming if no conservation
work is undertaken and listed these
three ways to prevent erosion: (1)
Save the topsoil, (2) save plant food
in the soil, and (3) repair the damage
already done.

Challenge to Banking

C. W. Bailey, president of the A.B.A.,
in his “ Challenge to Banking” touched
on this same subject when he said bet­
ter farming methods have now proven
that productivity of farm land can be
increased 25 per cent through proper
care and soil conservation. As a re­
sult, he said, this eliminates the neces­
sity of farmers having to go into debt
to buy more farm land to have the
same amount of income. He outlined
a five-point farm program in which
bankers can assist:
1. Balanced farming program.
2. Payment of farm mortgage debt.
. 3. Creation of reserves of cash by
farmers.
4. Building of reserve of soil through
soil conservation.
5. Encouraging youth to remain ag­
riculturally minded.
“ South Dakota need have no fear of
a future depression,” Mr. Bailey ex­
plained, if a sound agricultural philos­
ophy is followed with farmers becom­
ing financially independent. The first
step in this direction is payment of
farm mortgages, and the next step is
the proper balancing of farm products
for the specific area in which the farm
exists.
Over and beyond visualizing one’s
own bank and seeing that it is hold­
ing together and making money, Mr.
Bailey said, it is a duty of bankers to
analyze business in their communities
and surrounding country and see if in
relation to these other people, services
are being offered and carried out to
their benefit.
(Turn to page 60, please)

A t th e South D a k o ta C o n v e n tio n ---- >
CONVENTION TIME IN SOUTH DAKOTA brought an ex­
cellent attendance at the 55th annual meeting in Sioux Palls
last month of the South Dakota Bankers Association. Pictured
on the opposite page are some o f the many bankers who were
present. Reading from left to right in each photograph, they
are :

3—
J. M. Lloyd and A. G. Berger, cashier Deuel County Na­
tional Bank, Clear Lake.
4—
Charles E. Lee, president First National, Volga, and A. E.
Dahl, inspecting bank remodeling exhibit.

]— George Starring (foreground) looking on as J. M. Lloyd,
vice president American State Bank, Yankton, and A. E. Dahl,
president Rapid City National Bank, Rapid City, receive con­
gratulations from L. C. Foreman, president Corn Exchange
Bank, Elkton, on their election as vice president and president,
respectively, of the Association. Mr. Foreman is retiring presi­
dent.

6—
G. A. McGarraugh, vice president First National Bank of
the Black Hills, Sturgis; O. S. Nygaard, vice president and
cashier Farmers State Bank, Dupree, and N. S. Schirber, vice
president Dewey County Bank, Timber Lake.

2— R. H. Seydel, cashier Menno State Bank, Menno, and
Charles W. Christen, president First State Bank, Roscoe, also
Group 6 representative on the executive council.

8—
Arthur J. Haerter, president Farmers State Bank, Hosmer,
and Walter Mashek, state agent St. Paul Fire and Marine,
Sioux Falls.

Northwestern Banker, July, 1947

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Federal Reserve Bank of St. Louis

5—
Julius Bertsch, cashier Fulton State Bank, Fulton, and
N. J. Thomson, president Farmers and Merchants Bank, Platte.

7—
Tom Burke; Frank Burke, Union Savings Bank, Sioux
Falls; O. E. Pearson, cashier, and E. J. Pearson, president
Brandon Savings Bank, Brandon.


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Federal Reserve Bank of St. Louis

Iowa Representative

w ith

c U U ie s J a c ts

co n ta cts

D. H. Reimers, president of The Live
Stock National Bank of Chicago, has
announced that J. Merrill Anderson of
Ottumwa, Iowa, has been employed by
the bank as its Iowa representative
and will travel extensively throughout
the state calling upon the bank’s many
correspondents and generally serving
the bank throughout the territory.
Mr. Anderson is a native Iowan, hav­
ing been born and raised on a farm
near Stanton, Montgomery county,

service

d knowledge of Wisconsin
° n -‘

8

nes8,in<Justry,agn

ksthrougb-

ar% of all the banks throng

contacts w>thover
always
. , , At your service " " 5 State'
'
. lh8l go beyond
a
serve in many «ays that g
ready
f mere routine efficiency
the usual limns ol
BRNKS

y i c e P resident

RNO

G eorge T . C a m p bell • *
R ich ard

I

J- L a w le ss

^

p resid erlt

^ p resident

Donald A- Harper • /*ss

FIRST WISCONSIN NATIONAL BANK
OF M I L W A U K E E
MEMBER

FEDERAL

Northwest ern Banker, Julv, 1947


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Federal Reserve Bank of St. Louis

• W isco n sin ’s Bank for Banks
DEPOSIT

INSURANCE

CORPORATION

J.

M E R R IL L A N D E R S O N
W i ll Travel Iowa

Iowa. He graduated from Iowa State
College at Ames in 1939. After 39
months of army service, 14 of which
were spent in the Pacific area as an
administrative officer, he was separ­
ated and returned to his former posi­
tion at Ottumwa, Iowa, where he has
been employed until this time.
Mr. Reimers, in making this an­
nouncement, points to the fact that
The Live Stock National Bank of Chi­
cago has, since its organization in
1868, been closely identified with agri­
culture and the livestock industry.
Mr. Anderson’s background and ex­
perience in this field, Mr. Reimers
stated, should well qualify him to ren­
der a valuable service to the bank’s
many correspondents throughout the
state. He will continue to live in
Ottumwa, Iowa.

Receives Degree
Herbert V. Prochnow, vice president
of The First National Bank of Chi­
cago, received his doctor of philosophy
degree from Northwestern University
last month. Mr. Prochnow’s thesis,
culminating his work for this degree,
is entitled “ Term Loans in Practice
and Their Place in Banking Theory.”

31

¥ /Â e

L IV E

BA N K

e À a /w d i u /
UNION

ST O C K

S T O C K YARDS

•

c f

T EL E P H O N E Y A R D S 1 2 2 0

â P û t/ e w i& n t

<^ c 4 tc / s € ¿ € 0 'n

Close of Business— June 30, 1947

RESOURCES
Cash and due from banks..........................................$ 1 4 ,8 9 7 ,5 2 6 .2 1
U. S. Treasury certificates and n o te s.................... 1 5 ,2 6 5 ,0 0 2 .2 5
U. S. Treasury b o n d s ................................................ 1 7 ,8 3 3 ,2 1 8 .0 1
State and municipal securities.................................
1 ,2 8 8 ,7 4 6 .1 2
Other marketable bonds...........................................
4 0 7 ,0 0 0 .0 0
Loans and discounts....................................................
7 ,4 8 3 ,5 1 4 .2 3
Federal Reserve Bank stock.....................................
7 5 ,0 0 0 .0 0
Bank building.................................................................
3 0 0 ,0 0 0 .0 0
Interest earned, not collected.................................
1 9 0 ,2 5 3 .5 1
Current receivables and other assets...................
1 4 7 ,6 3 5 .8 5
T o ta l......................................................................... $ 5 7 ,8 8 7 ,8 9 6 T 8

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...............................
2 6 5 ,0 4 1 .8 6
Unearned discount.......................................................
2 0 ,3 8 0 .4 7
Liability under Letters o f Credit...............................
2 ,0 0 0 .0 0
D eposits............................................................................. 5 5 ,1 0 0 ,4 7 3 .8 5
T otal............................................................................$ 5 7 ,8 8 7 ,8 9 6 .1 8
fia t * /

c £

Frederick H. Prince
JOHN W . AUSTIN

ARTHUR G . LEONARD

Treasurer, Union Stock Yard
& Transit Co.

President, Union Stock Yard
& Transit Co.

W illiam W

o o d P rince
Trustee, Central Manufacturing
District

I v a n E. B ennett
Vice-President

RICHARD HACKETT

R alph m Sh a w
Winston, Strawn & Shaw

General Manager, Central
Manufacturing District

Thom as

e . W ilson
Chairman of the Board
Wilson & Co.. Inc.

ORVIS T . HENKLE
Industrialist

D a v id H. R eimers
President

SERVING

AGRICULTURE

AND

INDUSTRY

f j f f o t ’C e d 8 6 8
M E M B E R


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Federal Reserve Bank of St. Louis

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, July. 1947

d e p o sit

Saves

n,rn

tra n sa ctio n s

less wan
lime— less
completed as

fa s t e r 1.
te e d f ° r

U sance of Passl
Eliminates ni
- n o s it tickets.
•eceipt p ro v e s
d u p lic a te d
^registered vim ount shown.
■otection
In creases hi
deposit for a
-e iv e d <
am ount of onl>
that b a n k
.receipt shov/s t< not disciosec
In cre ase s h
tor's identity
on e d e p o sit

Wins
service, with

gestion, mar
Speeds inten

department,
accuracy
Increases
¡rnent.
are in agree:

lost receip t-

Increases

to others in

FIGURING, ACCOUNTING, STATISTICAL AND CASH REGISTERING MACHINES


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Federal Reserve Bank of St. Louis

„ fa ste r tlo
ter cage be
d e P °5ltors

s

kept by
transactions.

•

NATIONWIDE MAINTENANCE SERVICE

MACHINE SUPPLIES

✓

THE BURROUGHS COMMERCIAL TELLER’S MACHINE
Proved in banks from coast to coast
— now the fastest-grow ing service
in the field!
Y o u ’ll win compliments from old customers. Y o u ’ll
win new customers. Y o u ’ll receive widespread good ­
will and publicity for your alertness to new develop­
ments and your use o f modern methods!
That’s been the experience o f banks everywhere
that have mechanized and improved their service
with Burroughs Commercial Teller’s Machines. And
their experience dates clear back to 1 9 3 9 , when this

What Users Say A l
Here are just a few of the many comments received from
users of Burroughs Commercial Teller’s Machines.
"A N O TH ER STEP FORWARD IN BANKING . . . machines
are doing a job for us . . . speeded up operation between
teller and customer . . . enable us to move daily work to
proof department faster.”
CITIZENS AND SOUTHERN NATIONAL BANK
(10th St. Office), Atlanta, Ga.

machine was quietly introduced and thoroughly
tested under all operating conditions.
Since then, this new service has swept the country
on its own . . . so gratifying the public response, and
so many the benefits to banks. Today, the list of
enthusiastic users includes banks all over the country,
and the demand is increasing every week!
W hat would you like to know about this great new
development? H ow the machine handles every type
o f transaction? H ow other banks have introduced
this new service and gained widespread publicity
and goodwill? W here you can see an actual installa­
tion? Call your nearest Burroughs office for the
answers to these and all your questions.

t This New Service
"SUPPLIED ANSWER TO CONGESTED LOBBY . . .
faster service . . . an added feature was a substantial decrease
in tellers’ cash differences.”
NATIONAL BANK OF WASHINGTON, Tacoma

"N O DIFFICULTY IN CHANGE-OVER . . . feel this is
most constructive advance in bank mechanical equipment
in recent years . . . differences more easily located.”
NIAGARA NATIONAL BANK, Buffalo, N. Y.

"CUSTOMERS RECEIVE BETTER, FASTER SERVICE . . .
stationery cost reduced . . . depositors appreciate the faster
service, the neatness and accuracy and the official machinevalidated receipt.”

"TELLERS ASSISTED IN BALANCING . . . change-over to
machines and discontinuance of passbooks made with
virtually no difficulty . . . customers very well pleased . . .
lobby lines disposed of 2 0% to 30% faster.”

PACIFIC NATIONAL BANK, Seattle, Wash.

STATE NATIONAL BANK, El Paso, Texas

This sample deposit receipt shows the information given to
both the customer and the bank. Once the amount is set up,
all information is printed automatically on the receipt, and the
amount cannot be changed until duplicated on the bank’s
records. In a matter of seconds, any type of transaction can
be handled on the machine. Cash-in and cash-out totals
accumulate automatically and are available whenever wanted.


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Federal Reserve Bank of St. Louis

B u rrou gh s
THE MARK OF SUPERIORITY
IN MODERN BUSINESS MACHINES

34

IÍ04T School o f Ihm hin ff at

A D M IN IST R A T IV E officers, sectional leaders and students of the three classes, fresh­
man, junior, and senior, pictured in front of Bascom Hall on the University o f Wisconsin
campus, at the opening of the 1947 session last month.

IN

THREE years the Central States
I School of Banking at the University
of Wisconsin in Madison has grown
from 47 students and 22 faculty mem­
bers, to its present size of over 400
students and faculty. This remarkable
growth is attributed by Harry C. Hausman, chairman of the board of trustees
of the School of Banking and secretary
of the Illinois Bankers Association, to
the desire of middle-western bankers
to secure the latest possible informa­
tion on banking and economic con­

ditions from recognized authorities.
Herbert V. Prochnow, director of the
school and vice president of the First
National Bank of Chicago, announced
that the freshman class this year was
double that of last year with bankers
from 20 states and the District of
Columbia in attendance. The school
ran during the first two weeks of last
month.
Charles E. Taylor, assistant cashier
of the Northern Minnesota National
Bank, Duluth, was named secretary-

THE INDEPENDENT BANKERS
ASSOCIATION
. . . An organization with a definite objective— the preservation
of independent banking.
We

cannot

permit

It is the paramount issue.

anything

that

approaches

monopoly without damage to our free economy.
the issue of a free people.

a

banking

Our issue is

Concentration of economic power

is an immediate danger.

treasurer of the freshman class. Others
attending the school include:
Class of 1947

Class of 1947 (just graduated): Carl
F. Wieseke, assistant cashier North­
western National Bank, and Robert L.
Wilcox, Federal Reserve Bank, both of
Minneapolis.
Class of 1948

Class of 1948: James B. Collinson,
assistant cashier First National Bank,
Devil’s Lake, North Dakota; Edward J.
Distelhorst, trust officer Guaranty
Bank and Trust Company, Cedar
Rapids, Iowa; Melvin B. Holmgren,
Federal Reserve, Minneapolis; William
F. Hopke, cashier The State Bank of
Faribault, Minnesota; Floyd F. Feider,
assistant cashier The First National of
St. Paul; Carl J. Schütz, assistant cash­
ier Mitchell National, Mitchell, South
Dakota; Feland M. Stenehjem, assistant
cashier First International Bank, Wat­
ford City, North Dakota; George W.
Toft, assistant cashier Commercial
Trust and Savings Bank, Mitchell,
South Dakota; Harold C. AVinder, as­
sistant cashier Central National Bank
and Trust Company, Des Moines, and
Howard W . Zabel, vice president Peo­
ples State Bank, Plainview, Minnesota.
Class of 1949

L. B. McBRIDE

BEN DuBOIS

President

Secretary

Fort Collins, Colorado

Sauk Centre, Minnesota

Nort hwest ern Banker, July, 1947


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Federal Reserve Bank of St. Louis

Class of 1949: Harvey B. Adkins,
FDIC, Des Moines; Milo C. Blazek,
Federal Reserve of Kansas City, Oma­
ha; Clarence C. Cayou, vice president
Farmers and Merchants State Bank of

35

U niversity ni I V

Stillwater, Minnesota; Gregory W. Corken, assistant cashier Dubuque Bank

isent3 Í iniison

Bernard M. De Lay, assistant cashier

W. Gorr, assistant cashier Omaha Na­
tional Bank, Omaha; Edward J. Hamernick, assistant cashier Marquette
National, Minneapolis; Howard Hoese,

De Lay National, Norfolk, Nebraska;
Joseph M. Downes, assistant cashier
First National of Minneapolis; Charles

vice president Security State Bank,
Glencoe, Minnesota; John S. Holdhusen, cashier Ipswich State Bank, Ips­

and Trust Company, Dubuque, Iowa;

wich, South Dakota; W. Britton Knight,
comptroller Omaha National Bank;
John R. Lauritzen, assistant cashier
The First National of Omaha; Scott D.
Lovald, cashier First National, Philip,
South Dakota; Gerald J. Maier, vice
president Northwestern State Bank,

City National Bank and Trust Company
of Chicago
Condensed Statement of Condition— June 30, 1947
RESOURCES
Cash and Due from Banks

-

U. S. Government Securities
State, Municipal, and Other
S e c u r i t i e s ............................
Loans and Discounts

LIABI LI TI ES
$ 85,733,009.87

C a p i t a l ...................................

143,996,396.56

S u r p l u s ...................................

4,000,000.00

Undivided Profits

2,727,667.95

6,521,846.21
86,261,745.26

Federal Reserve Bank Stock

240,000.00

Accrued Interest

570,096.22

-

Customers' Liability on Letters
of Credit and Acceptances
Other Resources


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

-

2,898,423.06
83,585.11

-

-

-

-

$

4,000,000.00

Reserves for Interest, Taxes,
and Contingencies

2,465,279.32

Dividend payable August 1,
1947
-

60,000.00

Letters of Credit and Accept­
ances Outstanding

2,898,423.06

Other Liabilities

-

107,086.12

D e p o s i t s ...................................

$326,305,102.29

310,046,645.84
$326,305,102.29

M em ber Federal Deposit Insurance Corporation

Nort hwest ern Banker, July, 1947

36

WE I N V I T E

ACCOUNTS

FROM B A N K S ,

I N D I V I D U A L S • SE N D U S

YOUR

CORPORATIONS

PACIFIC

COAST

( L a n X cvlá¿Áj < ~ > t< ztem en t CUr O

nne

Duluth; Charles T. McGarraugh, North­
western National, Minneapolis; Donald
L. MacGregor, assistant vice president
The First of St. Paul; Donald W. Mac­
Gregor, assistant cashier First Henne­
pin State Bank, Minneapolis; Hoyt C.
Messerer, assistant cashier First Na­
tional, Cedar Falls, Iowa; Carl F. Mostrom, cashier Farmers and Merchants
Bank, Cresco, Nebraska; Vic B. Per­
kins, assistant cashier Iowa Trust and
Savings, Estherville, Iowa; James B.
Schaefer, FDIC, Sioux Falls; Edwin M.
Shafer, assistant cashier First Na­
tional, Fargo; Wilfred C. Siddle, trust
officer First Trust and Savings, Daven­
port; Charles E. Taylor, assistant cash­
ier, Northern Minnesota National of
Duluth; George W. Taylor, cashier Mc­
Donald State Bank, North Platte, Ne­
braska; Thomas H. Wake, president
Jones National, Seward, Nebraska;
Charles H. Walcott, assistant cashier
Security National, Sioux City; Clement
A. Van Niee, Federal Reserve of Min­
neapolis, and Burnham Yates, vice
president First National of Lincoln.

AND

BUSINESS

30,1941

RESOURCES
Cash and Due from B a n k s ............................................................
United States Government Securities......................... ...............
Obligations o f Other Federal Agencies . . .
$4,864,583.36
State, County and Municipal B o n d s .............
12,022,490.71
Other Bonds and S ecu rities......................... ........... 542,290-98
Stock in Federal Reserve Bank.....................................................
Ownership o f CaliforniaTrust Com pany...................................
Loans and D is c o u n ts .....................................................................
Bank Premises, Furniture and F ixtu res......................................
Earned Interest R eceivable............................................................
Customers’ Liability under Letters ofCredit and Acceptances .
Other Resources . .........................................................................
T o t a l ...............................................................................................

$ 93,003,169.64
246,439,607.99*

17,429,365.05'*
390.000.00
1,475,324.661
88,366,654.74
1,091,492.16
1,467,248.92
1,530,227.07
218,270.31
$451,411,360.54

|

?

V

LIABILITIES
Deposits: D e m a n d ........................................... $257,802,569.91
T i m e ............................................... 163,631,535.00
United States W ar Loan D eposit.
1,180,800.61
Other Public F u n d s ...................
8,301,399-95
Reserve for Interest,Taxes and Expenses...................................
Unearned Interest C ollected.........................................................
Letters o f Credit and Acceptances...................... . .....................
Capital S t o c k ..................................................
6,500,000.00
Surplus...............................................................
6,500,000.00
Undivided Profits............................................
3,932,456.20
T o t a l ........................................................................................................................

ii
$430,916,305.47
1,253,813.28

682,299-28
1,626,486.31

16,932,456.20
$451,411,360.54

What Time Is It?
A new postwar model Audichron
was recently installed by the First
National Bank in St. Louis. This is
a machine which automatically gives
the time of day and a brief advertising
message over the telephone when its
number is called.
The new machine has many im­
proved scientific features. There are
47 telephone lines connected directly
with the equipment, and present calls
average about 49,000 each day. This
is an increase of 20,000 a day during
an eight-year period. The machine
which the new one replaced had an­
swered more than 123 million calls
since its installation on January 13,
1939.

■“$24,190,238.07 pledged, according to law, to secure Public Funds and Trust Deposits.

Guaranty Trust, New York

ICaliforniaTrust Company—owned by California Bank and devoted exclusively to trust service—
has Capital o f $1,000 000.00, Surplus o f $500,000.00 and Undivided Profits o f $252,763.66.

OFFICERS
F R A N K L. K I N G ,
Senior V ice P resid ent

P resid ent

V ic e P resid en t a n d C ou n sel

ALLAN H A N C O C K

C H A S . E. D O N N E L L Y
V ic e P resid ents

W . F. B R A N D T

A R T H U R T. B R E T T

F. S. H A N S O N

H . E. H U D S O N

J. G . M A U L H A R D T

J. A . S H I N E

MEMBER

SYSTEM

RESERVE

Northwestern Banker, July, 1947


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

T. E. I V E Y , JR.

H .J .M E N D O N

F. H O W A R D R U S S, JR.

FEDERAL

C. C. D e P L E D G E

DEPOSIT

F. M . M A G E E

B. B. O D E L L

A . H . S M IT H

& FEDERAL

W . W A Y N E GLOVER

C L IF F O R D T W E T E R

INSURANCE

CORPORATION

ÿ

The statement of condition of Guar­
anty Trust Company of New York as
of June 30, 1947, shows total resources
of $2,808,162,974.99, as compared with
$2,841,800,875.01 at the time of the last
published statement, March 31, 1947.
Deposits are $2,417,706,061.39, as com­
pared with $2,450,270,491.32 on March
31. U. S. Government obligations
total $1,406,053,590.09, as compared with
$1,415,822,179.31; and loans and bills
purchased total $679,092,157.52, as com­
pared with $744,331,675.63. The state­
ment shows total capital funds of
$358,124,196.08, comprising capital of
$100,000,000, surplus fund $200.000,000,
and undivided profits of $58,124,196.08,
the latter figure comparing with $56,982,565.66 on March 31, 1947.

37

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and Hammermill Safety now offer to
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Nort hwest ern Banker, July, 1947

38

F o r Su m in o r V a ra i ion

New Officers
The election of Francis L. Pell, Jr.,
as a vice president of The Philadelphia
National Bank has been announced by
Frederic A. Potts, president. Mr. Pell
was with the Corn Exchange Bank
Trust Company, New York City, for
twelve years, and prior to joining the
Army Air Forces in 1942 was manager
of the 36th Street office.
Mr. Potts also announced the ap­
pointments of Harold W. Wallgren as
an assistant vice president, G. Edward
Cooper as assistant vice president and
comptroller, and Walter F. Smith as
an assistant cashier.

Dividend

THE OLYMPIAN HIAWATHA, new Milwaukee Road speedliner, went into
service on June 29th. On each of the six complete units o f the train, the coaches,
Touralux sleeping cars, tip-top grill car and dining car will be brand new. Pending
delivery of the all-room sleeping cars, bedrooms, compartments and drawing
rooms will be available in standard sleeping cars.
Vacationists bound to or from the Pacific Northwest this summer will benefit
from this new real service. The forty-five hour schedule o f the Olympian Hiawathas will save passengers to Rocky Mountain vacation areas about half a day,
and a full night and part of a day for those going to Puget Sound. There will be
no extra fare on these trains.

" X ”

M A R K S

Traditionally, " X ” marks the spot
where the body was found. It also
means "his mark” in the case o f a
person w ho cannot sign his name. As
a signature it is in the same class with
about twenty-five per cent o f the
signatures on checks in current circu­
lation, but it has the advantage o f
clarity inasmuch as som eon e w h o
can write tells you w ho " X ” really is.
Conversely, those w h o scrawl are
educated people. They know how to
write but you’d never know it by
looking at their signatures.
Just as som eone must identify " X , ”
so sh o u ld som e o n e iden tify M r.
Scrawler. W e can do it by printing his
name on the checks he uses and then
he can scrawl to his heart’s content
without slowing down the process o f
sorting and filing his checks. W e do
not believe any attempt should ever
be made to convince him he should

Nort hwest ern Banker. July, 7947


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

THE S P O T
write so p eop le cou ld read it. His
signature is distinctly his own and he
is entitled to use it even though it
does look like a frustrated doodle.
BUT the printed name should accom ­
pany it so people can tell w ho he is.
It d o e s n ’ t cost m uch to take the
mystery out o f these signatures. Per­
sonalized Checks cost only $1.25 for
200, and that’s enough for a year in
most cases. Business checks are equally
low in cost. And people are glad to
pay for them. So, if your bank is not
already selling these checks, why not
write us for full information concern­
ing our Imprinted Check Program.
Y o u ’ll save money, please customers,
cut down on your labor costs . . . and
you’ll get some fun out o f selling
them. There is nothing more stimu­
lating than selling something people
like to buy, and people certainly do
like to buy Personalized Checks.

The board of directors of the City
National Bank and Trust Company of
Chicago, at their regular meeting June
24th, declared a quarterly dividend of
$1.50 per share, payable August 1, 1947,
to shareholders of record on July 21st.
This is an increase of 50c per share
over the quarterly dividend rate that
has been in effect in the past and
places the stock on a regular $6.00
annual basis.

Appointment
Appointment of Henry W. Drath as
assistant vice president, Internationa]
Banking Department of the Bank of
America, was announced by L. M.
Giannini, president of the bank.
Mr. Drath has been assigned to the
bank’s representative office in New
York at 44 Wall Street, where he will
act as liaison for the California insti­
tution in the field of international
banking activity. He brings to his
new post a background of 18 years’
previous experience in foreign depart­
ment banking in New York and over­
seas.

Chase National
The statement of the Chase National
Bank for June 30, 1947, shows deposits
on that date were $4,445,081.000 com­
pared with $4,488,156,000 on March 31,
1947, and $5,039,709,000 on June 30,
1946.
Total resources on June 30, 1947,
amounted to $4,814,277,000 compared
with $4,860,581,000 on March 31, 1947,
and $5,403,847,000 a year ago; cash in
the bank’s vault and on deposit with
the Federal Reserve Bank and other
banks amounted to $1,113,745,000 com­
pared with $1,104,330,000 and $1,249,714,000 on the respective dates; invest­
ments in United States Government
securities were $2,168,563,000 compared
with $2,140,178,000 and $2,611,093,000;
loans and discounts $1,203,007,000, com­
pared with $1,251,549,000 on March 31,
1947, and $1,166,386,000 on June 30,1946.

39

IR V IN G

T R U S T

C O M P A N Y
NEW YORK
CHA RTER

MEMBER

NEW

YORK

CLEA RING

HOUSE

ASSO CIAT ION,

OCTOBER

4,

I

8 5 3

Statement o f (fonditi on, June j o , 1 9 4 J

ASSETS
Cash and Due from Banks. . .......................................................$ 278,183,071.12
U. S. Government Securities............................................................
547,624,771.03
Other Secu rities.................................................................................
Stock in Federal Reserve B a n k ......................................................

2,123,579.00
3,088,100.00

Loans and Discounts
................................................
First Mortgages on Real E sta te ......................................................

300,716,608.15
5,781,196.45

Headquarters Building.......................................................................

14,898,800.00

Customers’ Liability for Acceptances Outstanding......................
Other A s s e t s ..................................................................................
.

3,912,655.96
3,193,447.28
$1,159,522,228.99

LIABILITIES
Deposits...................................................................................................... $1,035,687,212.55
Acceptances......................................................
Less Amount in P o rtfolio ...........................

$7,469,444.75
3,028,814.35

4,440,630.40

Reserve for Taxes and Other E x p e n s e s ......................................
Dividend payable July 1, 1947
Other L iabilities.................................................................................

2,797,663.93
750,000.00
1,868,301.40

Capital S t o c k .................................................
Surplus and Undivided Profits . . . .

$50,000,000.00
63,978,420.71

113,978,420.71
$1,159,522,228.99

United States Government Securities are stated at amortized cost. Of these, $24,507,293.20
are pledged to secure deposits of public monies and for other purposes required by law.
M em ber Federal D eposit Insurance Corporation

BOARD

OF

HARRY E. WARD

DIRECTORS
WILLIAM N. ENSTROM
President

Chairman of the Board

O. L. ALEXANDER

WILLIAM K. DICK

MICHAEL A. MORRISSEY

President
Pocahontas Fuel Company
Incorporated

Chairman o f the Board
National Sugar Refining Company

Chairman of the Board
The American N ew s Company

HENRY P. BRISTOL

Fletcher & Brown

President
Bristol-Myers Company

GEORGE F. GENTES

W. GIBSON CAREY, Jr.

HAROLD A. HATCH

President
The Yale & Towne M /g . Co.

REID L. CARR

HENRY FLETCHER
Vice President
Vice President
Deering Milliken & Co., Inc.

DAVID L. LUKE, Jr.

President
Columbian Carbon Company

President, W est Virginia
Pulp and Paper Company

JOHN F. DEGENER, Jr.

HIRAM A. MATHEWS

C. A. A ußm ordt & Co.

Vice President


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

PETER S. PAINE
President
N ew York & Pennsylvania Co.

FLETCHER W. ROCKWELL
Chairman o f the Board
National L ead Company

WILLIAM SKINNER
President
William Skinner & Sons

LeROY A. PETERSEN

WILLIAM J. WARDALL

President, Otis Elevator Company

Chairman of the Board
The Best Foods, Inc.

J. WHITNEY PETERSON
President
United States Tobacco Company

RICHARD H. WEST
Executive Vice President

JACOB L. REISS

FRANCIS L. WHITMARSH

President
International Tailoring Company

President
Francis H. Leggett & Company

Northwestern

B anke r, July,

1947

40

Mnstailnient Loans %

Hanks

What Banks Can Do to Help the Small Business Man
Who Is Entitled to Credit
By THEODORE D. MAIER
Vice President
First National Bank
St. Paul

IT IS a familiar statement that the
loan must be made to fit the needs
of the borrower. It is good business
to be able to offer a variety of loan
services to meet the various and spe­
cial needs of small business. The

banker in a small community does not
have the opportunity to handle a vari­
ety of loans of this type and, conse­
quently, is lacking in breadth of ex­
perience. We encourage him to call
upon his correspondent bank, no mat-

C h e m ic a l
b a n k
Sc

T R U S T COM PANY
Founded 1824

165 Broadway, New York
C O N D EN SED S T A T E M E N T OF C O N D IT IO N
At the close of business, June 30, 1947
ASSETS
Cash and Due from Banks__________
U. S. Government Obligations_______
Bankers’ Acceptances and Call Loans.
State and Municipal Bonds
____ _
Other Bonds and Investments_______
Loans and Discounts________________
^Banking Houses_____________________
*Other Real Estate______________ _
Mortgages.
Credits Granted on Acceptances.
Accrued Interest and Accounts
Receivable
____________ _
Other Assets___________________

,011,456.43
,613,550.92
,155,715.98
,606,317.86
,963,545.51
,925,139.85
209,793.50
,231,697.97
118,773.38
,246,451.49
,955,447.79
,055,152.80
$1,293,093,043.48

LIAB ILITIES
Capital Stock.
Surplus.
Undivided Profits.

$25,000,000.00
75,000,000.00
7,289,612.65 $107,289,612.65
Reserve for Contingencies________
4,350,530.35
Reserves for Taxes, Expenses, etc..
4,745,615.30
Dividend Payable July 1, 1947.
1,125,000.00
Acceptances Outstanding $7,201,957.91
(Less own acceptances
held in portfolio)
976,625.54
6,225,332.37
Other Liabilities_________________ ____
398,354.92
Deposits (including Official and Certified
Checks Outstanding $27,267,966.24 1,168,958,597.89
$1,293,093,043.48
Securities carried at $18,427,734-61 in the foregoing
statement are deposited to secure public funds
and for other purposes required by law.

Northwestern Banker,

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

Assessed Valuation $4,201,690.00

Charter Member New York Clearing House Association
Member Federal Reserve System
Member Federal Deposit Insurance Corporation

1

July,

7947

ter how small the deal may be. It is
good for small business. It is good
customer relationship as well.
I do not wish to convey the impres­
sion that banks are, or should be, dis­
posed to make loans on any basis other
than those which are fundamentally
sound. The banks, after all, are not
loaning their own funds. They are
loaning their depositors’ money —
money which, in a sense, is trust
money, payable on demand. Some of
the principles by which we are gov­
erned are these:
(a) There must be no doubt about
the borrower’s character, integrity and
general standing in the community.
If there is any question whatever in
our minds on these points, we are
strongly inclined to refuse the loan.
(b) We satisfy ourselves that the
applicant has the ability to operate the
business on a sound, profitable basis
in a fast-moving competitive economic
period.
(c) We thoroughly analyze the past
record of the business. Wherever pos­
sible, we examine the balance sheet
and operating figures of two or more
years, having in mind that almost al­
ways an installment business loan can
be repaid only out of earnings, and
if potential earnings cannot be seen,
the chances of repayment diminish.
We have, it is true, taken certain types
of fixed assets as collateral, but a bank
never wishes to find itself in a position
where it must resort to such collateral
for protection. So far we have not
found it necessary to do so.
(d) Another and an exceedingly im­
portant credit factor is this: How
much of his own money has the bor­
rower put into the business? How
much has he at stake? The bank
knows it may find itself in the un­
happy position of a partner in the
business, although with no opportu­
nity to share in the profits; for if the
business prospers under such a part­
nership, the bank will recover its loan
with a normal rate of interest, the
borrower will acquire the gain. This
principle of the law is sound, it is
just, but it is not inviting to the bank.
The borrower should carry his own
share of the burden of risk. Then, too,
these questions are considered: Is the

41

The First National Bank
o f Chicago
Statem ent o f C ondition June 3 0 , 1947
ASSETS
C a sh a n d D u e fr o m B a n k s , .

.

.

.

.

.$

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

U n i t e d States O b lig a tio n s — Direct and fully Guaranteed,
U n p le d g e d ,

.

.

.

.

$ 6 8 0 ,1 1 3 ,8 0 4 .2 4

P le d g e d — T o Secure Public Deposits and
Deposits Subject to Federal Court Order,

5 9 ,6 2 2 ,5 0 0 .0 0

To Secure Trust Deposits,

.

.

4 7 ,9 1 5 ,0 0 0 .0 0

U nder Trust Act of Illinois,

.

.

_____ 5 2 7 , 6 0 0 . 0 0

O th e r B o n d s a n d Securities,
L o a n s a n d D is c o u n ts ,

.

.

.

.

.

.

.

.

.

.

7 8 8 ,1 7 8 ,9 0 4 .2 4

.

1 0 0 ,2 0 9 ,9 8 6 .2 2

.

6 7 0 ,1 8 2 ,3 6 5 .2 9

R e a l Estate (B a n k B u ild in g ),

.

.

.

.

.

2 ,9 4 5 , 7 8 0 . 6 7

F ed eral R ese rv e B a n k S to ck ,

.

.

.

.

.

3 ,7 5 0 ,0 0 0 .0 0
1 ,3 9 5 ,7 2 5 .6 9

C u s to m e r s ’ L ia b ility A c c o u n t o f A c c e p ta n c e s ,
In terest E a rn e d , n o t C o lle c te d ,
O th e r A sse ts,

.

.

.

.

.

.

.

.

.

.

4 ,9 5 2 ,1 5 7 .2 2

.

.

. ___

4 1 0 ,7 9 6 .5 5

$ 2 ,0 3 7 ,6 3 0 ,4 9 9 .3 3

L I A B I L I T I E S
C a p ita l S to ck ,
S u rp lu s,

.

.
.

.
.

.

.

$ 6 0 ,0 0 0 ,0 0 0 .0 0

.

.

6 5 ,0 0 0 ,0 0 0 .0 0

O th e r U n d iv id e d P rofits,

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

D is c o u n t C o lle c te d , b u t n o t E a rn e d ,

1 ,0 2 5 ,5 8 9 .2 0

D iv id e n d s D e c la r e d , b u t U n p a id ,

1 ,2 0 0 ,0 0 0 .0 0

R ese rv e fo r T a x e s , etc.,

6 ,9 9 9 ,3 9 9 .7 1

L ia b ility A c c o u n t o f A c c e p ta n c e s ,

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

T im e D e p o sits,
D e m a n d D e p o sits,

.

.

.

. $

.

.

♦

.

.

D e p o sits o f P u b lic F u n d s,

3 6 4 ,9 2 5 ,1 4 8 .0 9
1 ,4 2 7 ,8 6 0 ,5 5 7 .9 0
1 0 5 , 1 8 2 , 2 3 8 . 9 6 1 ,8 9 7 ,9 6 7 ,9 4 4 .9 5

L iabilities o th e r th a n th o se a b o v e stated,


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

.

.

. ____________ 6 ,2 4 4 . 0 4
$ 2 ,0 3 7 , 6 3 0 , 4 9 9 . 3 3

M EM B ER

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Northwestern

Banker, Ju ly ,

1947

42
business well located? What is the
nature of the competition it must
meet? Is the business engaged in the
manufacture or sale of a highly com­
petitive line of merchandise on which
it may not be possible to make a profit
except through mass production meth­
ods, such as are used by large and
well-established companies?
When these points have been fully
discussed with the applicant, we con­
sider it highly important to call at the
place of business. We find that this
call usually breaks down any tension
which may exist between the bank and
the borrower. It convinces the bor­
rower that the bank is genuinely in­
terested in his welfare. It gives the

bank an opportunity to observe the
plant or business layout, the arrange­
ment of equipment or stock of mer­
chandise, the type of personnel em­
ployed, the neatness of the establish­
ment, and many other things which
can be learned only through observa­
tion.

Refusal
It is scarcely necessary for me to
tell you, I am sure, that not all of the
applications for loans are approved.
We believe, however, that the refusal
of a loan entails upon us a serious
responsibility. As soon as the facts
which we have gathered make us
aware that a loan must be refused, we

Statement of Condition, June 30, 1947
RESOURCES
Cash and Due from B a n k s................................................................. $ 52,494,342.86
U. S. Government Securities...............................................................
(Including those pledged $12,199,500.00)

69,648,210.07

Other Bonds and Securities . .............................................................

5,559,498.45

Federal Reserve Bank Stock...............................................................

300,000.00

Loans and D iscounts...............................................................................

79,881,168.62

Customers' Liability on A cceptances and Letters of Credit.

458,068.82

Real Estate

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

218,606.86

Accrued Earnings Receivable (N et)..............................................

483,874.14

Overdrafts

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

Other Resources

14,146.36

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

169,468.70
$209,227,384.88

LIABILITIES
Capital

..........................................................................................................$

6,000,000.00

Surplus and Undivided Profits..........................................................

7,142,210.94

Accrued Interest, Expenses and Taxes P ay able (Net)
and Other Reserves ....................................................................

1,005,751.25

Acceptances and Letters of Credit................................................

458,068.82

Other Liabilities

199,339.60

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

Deposits:
U. S. Government, and other
Public Funds ..............................................$
Other Deposits

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

4,399,500.00
190,022,514.27

194,422,014.27
$209,227,384.88

M em ber Federal
Deposit Insurance
Corporation

N o rt h w e s te rn Banker, July,


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

1947

92 Y ears oí
Banking E xp erter

go to great lengths and make an in­
tensive effort to explain as tactfully
as possible why we believe it is in­
advisable to make the loan. We do
this as directly and as honestly as we
can. We realize that it is at this point
the banks have not successfully car­
ried through in the past. By failing
to justify their refusals, they have
brought upon themselves the criticism
of unwillingness to supply the credit
needs of small business. Our efforts
along this line have met with reward­
ing success. In a satisfying number
of instances we have had the gratify­
ing experience of having a loan appli­
cant return to thank us not only for
our refusal to make the loan, but for
the advice and counsel we had given.
Times such as these are naturally
full of confusion and uncertainty. The
aftermath of a terrible war presents
great problems even to a victorious
and uninvaded nation, such as ours.
Within a few short months the small
business man has seen a definite
shrinkage in sales, prices in most lines
have softened appreciably, inventories
which were in short supply a few
months ago are now in excess supply,
accounts which were readily collectible
last year are now slowing up rather
markedly. The net result of all this
is definitely reflected in substantially
reduced net operating profits. Our
bank may boast that it has suffered
but few losses on its loans to small
business. Others are no doubt sim­
ilarly situated. Yet many thoughtful
men believe that more difficult times
lie ahead; that many of these loans
which today are current may become
troublesome problem cases in the pe­
riod just ahead.
If this is true—and I think it is—
then bankers engaged in making loans
to small business have a new and
larger responsibility, the responsibility
of counseling these borrowers concern­
ing the hazards and difficulties that lie
in their path, the responsibility of
guiding and giving personal help out
of the wealth of experience which they
have gained in working with so many
and such varied lines of business.
The starting of a business at any
time, even under the most favorable
conditions, is attended with many
risks, and even headaches. In my
judgment, the borrower at this time
should be encouraged to give close
attention to certain fundamentals.
Among these fundamentals are inven­
tory control, the extension of credit
and collection of accounts receivable,
markup, or gross profit, control of ex­
penses, percentage of investment in
fixed assets. This last item often be­
comes a •white elephant in time of
stress. Let me say again, the expe-

43

Guaranty Trust Company o f New York
M A IN O FFIC E
140 Broadway

F IF T H A V E . O FFICE
Fifth Ave. at 44th St.

M A D ISO N A V E . O FFICE
Madison Ave. at 60th St.

R O C K E FE LLE R C E N TE R O FFICE
40 Rockefeller Plaza
LO N D O N

P A R IS

BR U SSELS

Condensed Statement o f Condition, June 3 0 , 1947
RESOURCES
Cash on Hand, in Federal Reserve Bank, and Due from Banks and Bankers . .
U. S. Government O b lig a tio n s.............................................................................. .....
Loans and Bills Purchased ..........................................................................................
Public S e c u r i t i e s ................................................................... $
86,086,185.88
Stock of the Federal Reserve B a n k .......................................
9,000,000.00
Other Securities and O b lig a tio n s .......................................
10,536,043.20
Credits Granted on Acceptances.............................................
3,780,808.77
Accrued Interest and Accounts R eceivable.......................
10,966,484.77
1.405,637.19
Real Estate Bonds and M o r tg a g e s .......................................

$

^

Bank Premises ........................................................ .......................................................
Other Real E s t a t e ................................................................................... .....
Total Resources

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

596,220,879.07
1,406,053,590.09
679,092,157.52

7?5 i59 8i
4,886,185.78
135,002.72

.

$2,808,162,974.99

LIABILITIES
C a p ita l............................................. .....
. . . .
Surplus F u n d .........................................................................
Undivided P r o f i t s .......................................................

$

100,000,000.00
200,000,000.00
58,124,196.08

Total Capital F u n d s ........................................................ 7~7 7 7~7 ~ 7 $ 358,124,196.08
Deposits
...........................
$2,382,683,139.73
Treasurer’s Checks Outstandi ng
. . . . . . . .
35,022,921.66
Total Deposits
..................................................
Acceptances ........................................................ .....
Less: Own Acceptances Held for Investment
. . . .

7
$

7~7 7 7 7 “7
10,459,242.00
6,678,433.23

~$
Liability as Endorser on Acceptances and Foreign Bills .
Dividend Payable July 1, 1947 ............................................
Items in Transit with Foreign Branches (and Net Difference in

2,417,706,061.39

3,780,808.77
328,334.00
3,000,000.00

Balances between Various Offices Due to Different Statement Date of
Foreign B r a n d i e s ) ...................................................................

Accounts Payable, Reserve for Expenses, Taxes, etc.
Total Liabilities

.

.

.

.

.

.

.

.
.

278,650.17
24,944,924.58

.
.

7 .

.

.

7

32.332,717.52

7 7 $2,808,162,974.99

Securities carried at $9.6,316,723.33 in the above Statement are pledged to qualify for fiduciary powers, to secure
public moneys as required by law, and for other purposes. This Statement includes the resources and liabilities of
the English, Trench, and Belgian Branches as of June 26, 1947.

J. L U T H E R C L E V E L A N D
Chairman o f the Board

W. PALEN C O N W AY
Chairman o f the E xecutive Com m ittee

W IL L IA M L. K L E I T Z
President

DIRECTORS
G EO RG E G. AL LE N
D irector, B ntishAm erican T o b a c co C om pany, Lim ited,
and President, D uke Pow er C om pany
W IL L IA M B. B E L L
President, Am erican
C yanam id Com pany
F. W . C H A R S K E
Chairm an, Executive
C om m ittee, Union Pacific Railroad Com pany
J. L U T H E R C L E V E L A N D Chairman o f the B oard
W. PALEN CO N W AY
Chairman o f the
E xecu tive Com m ittee
C H A R L E S P. C O O P E R E xecutive Vice-President,
Am erican Telephone and Telegraph Com pany
W I N T H R O P M . C R A N E , JR.
President,
Crane & C o., Inc., D alton, Mass.
STUART M. CROCKER
President,
Colum bia Gas & E lectric Corporation


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

JO H N W . D A V IS

o f D avis Polk W ardwell
Sunderland & Kiendl
C H A R L E S E. D U N L A P
President,
Berw ind-W hite Coal M ining Com pany
GANO D U N N

President, Th e J. G.
W hite Engineering Corporation
W A L T E R S. F R A N K L I N
Vice-President,
Th e Pennsylvania Railroad Com pany
L E W IS G A W T R Y
JO H N A . H A R T F O R D
President, T h e Great
A tlantic & Pacific T ea C om pany
C O R N E L IU S F. K E L L E Y
Chairman o f the
B oard, Anaconda C opper M ining Com pany
M O R R IS W . K E L L O G G
Chairm an o f the
Board, Th e M . W . K ellogg Com pany

W IL L IA M L. K L E I T Z
President
C H A R L E S S. M U N S O N
President, Air
Reduction C om pany, Inc.
W IL L IA M C. P O T T E R
Retired
G E O R G E E. R O O S E V E L T o f R oosevelt & Son
EU G EN E W . STETSO N
Chairm an, Executive
C om m ittee, Illinois Central Railroad Com pany
R O B E R T T . S T E V E N S Chairman o f the Board,
J. P. Stevens & C om pany, Inc.
T H O M A S J. W A T S O N
President,
International Business M achines Corporation
C H A R L E S E. W IL SO N

President. General
E lectric Com pany
RO BERT W. W OODRUFF
Chairman,
Execu tive C om m ittee, Th e C oca-C ola Com pany

Member Federal Deposit Insurance Corporation

N o r t h w e s t e r n B a n k e r , J u l y t 1947

44

»hy LAWRENCE
is the nation’s outstanding
field warehouse organization

rienced banker has obtained a wealth
of information and the lessons which
he has learned from this information
he can share with others without be­
traying confidence or revealing confi­
dential information. Our national eco­
nomic system has come out of the war
geared to function upon new and
vastly higher levels of production.
Those higher levels impose correspond­
ingly greater responsibility upon busi­
ness leadership. Our banks must be
prepared to assume their share of re­
sponsibility, not only for the efficient
functioning of our financial system,
but of our entire economic system.—
The End.

New President
Garnett A. Carter, vice president of
The Fulton National Bank, Atlanta,
Georgia, was elected national president
of the American Institute of Banking,
educational section of the American

i_Jaw rence Warehouse Company is tile largest,
oldest and most experienced organization con­
ducting nationwide field warehouse operations.

T

J_Jawrence Warehouse receipts are supported by the
strongest financial statement of any firm in the field
warehouse industry. Our Annual Statement is regularly
mailed to a large list of banks and other lending
agencies. Additional copies are furnished on request.

T

X o protect Lawrence receipt holders, we carry by

far the strongest and broadest fidelity bond and legal
liability insurance in the field warehouse industry.

GARNETT A. CARTER
Heads A. I. B.

•

r1

X or over 30 years we have issued receipts for collateral
purposes totaling many billions of dollars and have
always discharged our liability in full to all holders
of Lawrence Warehouse Company receipts.

Company
NATIONW IDE

FIELD

DIVISION

W A REH O U SIN G

OFFICES:

SAN FR A N CISCO II, C A L IF.
37 Drumm Street

C H IC A G O 2, ILL.
I N. LaSalle Street

NEW YORK 5, N .Y.
72 W all Street

Denver 2, Colo.
First Nat. Bank Bldg.

St. Louis 2, Mo.
Boatmen's Bank Bldg.

Kansas City 7, Mo.
933 Mulberry Street

Los Angeles • Boston • Philadelphia • Buffalo • Cleveland • Richmond • Charlotte
Atlanta • Chattanooga • Jacksonville • Orlando • Cincinnati • New Orleans • Houston
Dallas
•
Seattle
•
Portland, Oregon
•
Stockton
•
Fresno
• Washington, D. C .
N o rt h w e s te rn Banker,

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Federal Reserve Bank of St. Louis

J u l y , 1947

Bankers Association. Mr. Carter was
advanced to the presidency from the
office of vice president, which was
filled through the election of Pierre
N. (Pete) Hauser, vice president of
the First Wisconsin National Bank,
Milwaukee, Wisconsin.
The American Institute of Banking
is one of the largest institutions in
the adult education field in the United
States, having a membership of close
to 80,000 and enrollments of more than
40,500. Courses are now being given
in more than 220 active chapters and
140 study groups located in cities and
towns in every section of the country.

Who Else?
Teacher: Who was Homer?
Johnny: He was the guy Babe Ruth
made famous.

45

INVESTMENTS

S

o b e r *

C

o

n

s e r v

a

t i v

e

Loafj-Tertn P o liey
Delayed Building Boom May Prove to Be a Tonic to Economy
By RAYMOND TRIGGER
Investment Analyst
New York City

P RICES of government bonds in the
first half of 1947 were notable for
stability. In the five, ten and twen­
ty year categories, the 1947 range was
well within the 1946 limits and, for
that matter, comfortably inside the
highs and lows of the second half of
1946. This is all the more surprising
in view of the flood of rumors respect­
ing imminent policy changes by the
federal authorities and the 30 billion
dollar debt reduction effected in the
fifteen months between the end of
February, 1946, and the first of June,
1947.
Almost the same degree of stability
was shown by high grade long-term
corporate obligations in the first six
months of the year, although near the
end of the period some resistance to
extremely high prices was commen­
cing to show itself.
Relatively, the lower grade corpor­
ates softened in the period, but the
adjustment was extremely mild and,
of itself, hardly disturbing. A some­
what similar performance was given
by stocks, which backed and filled in
a manner that virtually wore out the
patience of both bulls and bears.
Municipal and state bonds likewise
can claim credit for considerable sta­
bility in that average yields on longer
terms were almost unchanged in the
six months, although the 1946 range
was penetrated toward the end of
February when yields approached 2
per cent.

Forecasters Wrong
The only serious damage in the first
half of the year was that suffered by
the reputations of professional fore­
casters. As a group, including the
gloomy and the cheerful, they were
never so wrong. In general, the pe­
riod was one of high production, em­
ployment, income, expenditures, ex­
ports and tax collections. Industrial
production tended to flatten out in the
second quarter, but it was more than
satisfactory for the full six months.

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

This is a discussion of factors
affecting your investment port­
folio. If you have any questions,
or if you find yourself in dis­
agreement with comments here­
in, your letters, addressed to the
NORTHWESTERN BANKER, will
be welcome and will be answered
here if the subject matter is of
general interest. Under no cir­
cumstances will the editor of this
column discuss specific securities.

It was good, but not good enough to
prove the optimists’ case. There were
no real buyers’ strikes, but prices and
quality were restored to positions of
importance.
The postwar boom, it is generally
thought, has passed its peak, but it
managed to get over the hump with­
out any severe dislocations. The mild
recession under way may persist, hesi­
tantly for a while, and a year hence
general industrial activity may be as
much as 20 per cent under the best
1947 levels, but the late boom is not
becoming a bust over night. The near
term outlook is for a relatively dull
summer.
Although the economic forecasters
came off badly insofar as the first half
of 1947 is concerned, they shouldn’t be
blamed too severely. At the very top
level, as evidenced by the national
budget, estimates have fluctuated fan­
tastically in the course of a few
months. By the time these words are
read, however, the main factors will
have taken final form. The expendi­
tures of the Congress will be known,
the Treasury’s income for the fiscal
year will be history and the final posi­
tion a matter of record.

Taxes a Problem
The outlook, however, will be as
murky as ever. Tax rates are one

thing and total taxes are quite another
because they are largely determined
by volumes and profits. Production in
this country, as well as prices, will be
affected greatly by world affairs which
may, or may not, be rapidly approach­
ing a severe crisis and in which the
country may or may not participate to
a major extent. Mr. Baruch and Mr.
Hoover have urged that we take stock
of our resources, but some of our late
Allies are desperately, almost patheti­
cally, eager for concrete aid at once.
The staggering excess of exports over
imports scored in the first half of 1947
hardly can continue, but unless it does,
the situation in Europe easily may be­
come worse. The problem is further
complicated by the approach of 1948
and its nominating conventions and
subsequent national elections.
The longer view, then, must be a
sober one. Over the shorter term,
there is no reason for panicky retreat
from a mildly hopeful position. Trans­
lated into investment policy, there is
good reason to adopt a long-term con­
servative policy, but no need to act
precipitately.
In the early months of this year,
the government’s cash income was
greater than its cash outgo by many
billions. Indeed, the annual rate at
which spending power was being si­
phoned out of the national economy
was upwards of 12 billions. During
the war, for contrast, some 35 to 50
billions a year was being poured out
by the government, net, of course.
This billion-a-month siphoning off of
spending power is a heavy burden on
a free economy.
Although the burden is real, it is
only fair to admit that it was not
planned that way. The fault lies with
the system of taxation which raises
the total tax load automatically when
national income is high, whether or
not the money is wanted or needed by
the federal government. Lighter tax
rates would help, but a scientific revi­
sion of the system would be even betNorthwestern

Banker, July,

J 9 47

46

Investments

ter. If relief comes in time, the do­
mestic economy may easily coast
through what remains of the postwar
period of adjustment, but there is little

basis for unbridled optimism at pres­
ent.

Conservative Policies
The country’s largest investors are
evidently shaping their plans along
conservative lines. Recently there
have been one or two slow-moving

Jam

ie s o n

&
Com

MUNICIPAL and CORPORATE
SECURITIES

pany

Members

New York Stock Exchange
;

and

other

Principal

Underwriters and Distributors

Exchanges

★

STOCKS
BONDS
COMMODITIES
★

Wheelock & Cummins, Inc.

MINNEAPOLIS
F AR G O
ST. PAUL
G R AND FORKS
DULUTH
SIOUX FALLS
E AU CLAIRE

Private

200 Equitable Bldg.
Phone 4-7159

Des M oines, Iowa
Ä.T.T. DM 184

W ire to AH Principal Markets

_________ ____________________________________

INVESTM ENT COUNSEL
Individuals, Institutions, Trust Accounts and Estates

RICHARD R. ROLLINS, Inc .
Representing

SHERIDAN - FARW ELL & MORRISON,
INVESTMENT COUNSELLORS
E IG H T - SO U TH M IC H IG A N AV E N U E
C h ic a g o

3

Des Moines Office
405 Bankers Trust Building

In c .

bond issues. They were priced at high
levels to begin with, but the maturi­
ties also were rather distant. Institu­
tional buyers have balked at both
prices and maturity. Commercial banks
are more and more insistent on short­
er maturities, and rightly so.
The fiscal authorities in Washington
still have great powers over the money
market and appear unduly reluctant
to allow the bill rate to rise, although
that would be the obvious thing to do
at this stage. The preliminary steps
were taken some months ago and the
market is fully prepared. There may
be some modest decline in prices of
longer governments when the bull
market is freed, but there shouldn’t
be any severe shock. As a concrete
example, the longest bank eligible
governments may drop to a 2.25 per
cent basis.
To summarize: The world situation
is gloomy, almost desperate, and this
country cannot remain entirely unaf­
fected: the domestic outlook is for an
extension of the adjustment period in­
volving some further recession in in­
dustrial output, some contraction of
business profits and, possibly, moder­
ately lower bond prices. There is
likely to be time to make ready, how­
ever. It'should be used to upgrade
portfolio quality, even at the sacrifice
of income for a while.
The real risk existing in most com­
mercial bank investment holdings, as
has been said before in this column,
is the retention of medium grade cor­
porate bonds. The banks generally
seem to have done the wise thing in
respect to average maturities, but
driven perhaps by the desire to pre­
serve income in the face of rising
expenses, the small income advantage
offered by lower grade obligations has
seemed to compensate for the added
risk. That is probably a fallacy.
The lowest grade “bank quality” cor­
porates yield less than half a per cent
more than the next higher grade. This
is a half of 1 per cent a year. A fivepoint drop would wipe out in a couple
of months, say, all the advantage
anticipated over an entire decade.

Don't Expand Holdings
There is no reason why banks should
unload their “eligible” governments,
even though modest price declines ap­
pear likely, but there is good reason
why they shouldn’t expand holdings
for the present. Further, the banks
should be making ready to take ad­
vantage of any market reactions that
may develop. One way to make ready
is to reduce or eliminate holdings of
lower quality corporates.
A word of warning against a possible
expedient that may occur to those who
admit that the slight advantage afNorthwestern

B anke r, J u l y , 1947


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

Investments
forded by the higher yields from lower
quality bonds is not adequate compen­
sation for the greater risk, hut think
that, if that advantage were larger,
there would be adequate compensa­
tion. That is short-sighted. It is true,
that comparable qualities — as deter­
mined by the ratings only — of rail
bonds yield almost 1 per cent more
than of industrials. But, actually typi­
cal bonds in these two categories are
not comparable, regardless of the tags
given them by rating agencies. Even
a superficial study of the long history
and present outlook of the railroads
and a similar analysis of, say, the
chemical or petroleum industries, plus
a little common sense, should suffice to
convince that ratings may not be fol­
lowed blindly.
Rail equipment obligations are an
exception, of course, but they are in a
class by themselves. They are almost
always excellent investment media for
commercial banks, although currently
keen demand and limited supplies
have pushed prices rather high. In
time, though, when the coal is mined
and the steel is made, the railroads
will come to market to borrow the
money with which to pay for the roll­
ing stock they now have “on order.”


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Federal Reserve Bank of St. Louis

officers of the banks will find another
reason to have their portfolios in such
shape that the banks’ assets can read­
ily be diverted to mortgages. Only
conservative policies now will ensure
that the investment portfolio is in
shape then.—The End.

a delayed building boom might prove
to be just the tonic a jaded economy
needs at some later date. The banks,
of course, will figure importantly as
lenders at that time. And, looking
ahead to the restoration of such normal
and proper activities, the investment

INVESTMENT
SECURITIES
P u b lic U t il i ty
I n d u s tr i a l
R a ilr o a d
M u n ic ip a l

A .C .A L L Y N

and

c o m p a n y

Incorporated
100 W e s t M on roe S tre e t. C h ic a g o
\ew Y ork
O m ah a

Building Boom Coming
Another problem that indirectly af­
fects banks’ investment policies should
be solved in time. A notable character­
istic of the first half of 1947 was the
failure of home building to come any­
where near expectations. The short­
age of proper housing has been per­
haps overdramatized, but there could
be a well-sustained building boom in
this country if conditions — meaning
costs, mainly—were right.
Some of the insurance companies
have made notable headway with
large-scale building projects, but they
have special facilities not available to
the average home-owner or speculative
builder. Further they find the money
from their own resources and do not
borrow it.
Resistance to high costs has been
the main cause of the failure of a resi­
dential building boom to materialize.
The reasons for those costs are beside
the point, but the resistance thereto
will benefit all concerned in time. To
whatever extent a new home is gov­
ernment-guaranteed, if the costs were
out of reason and it is thrown back on
the mortgage holder, it will be an un­
satisfactory, and perhaps unprofitable,
investment. At the same time, highcost and high-priced new homes tend
to give artificial values to older build­
ings and thereby create unusual risks
to be carried by the mortgage holder.
Altogether, it is better to resist high
costs. Ultimately they will drop and

47

'

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

B o sto n

M in n e a p o lis

K a n s a s C ity

M olin e

INFORMED ACTION IS THE KEY TO SUCCESSFUL INVESTING

Trends and Outlook in the
Municipal Bond M arket

TV/; j

H ALSEY, STU AR T & CO. Inc.
123 S. LaSalle Street, Chicago 90, Illinois
Gentlemen: Please send me, without cost
or obligation, 1947 "M id -Y ear Survey o f the
Municipal Bond Market” and tax chart.
Name_________________________________________
Address_
City_

State_

For many years, American municipal bonds
have been o f prime interest to those seeking
conservatism and security in their investments.
Now, with the rapid reduction in the supply
o f tax-free United States Government bonds,
municipal obligations increasingly provide
the primary recourse for investors wishing to
minimize tax liability.
To institutional investors, banks and
individuals, whether experienced or con­
templating their first purchase o f municipal
bonds, this Mid-Year Survey presents timely
and helpful information. It examines
factors currently affecting the investment
opportunities in municipal bonds, discusses
the supply o f and demand for such issues
and inquires into price trends.

Send fo r this M id -Y ea r Survey
and tax chart which shows... to individuals,
banks and other corporations... whether
tax-exempt or taxable bonds return more
at various income levels.

Use this request form,

—

at no cost.

H A L S E Y , S T U A R T &, C O . I n c .
123

SO U T H LA SA LLE ST R E E T , C H I C A G O 9 0 • 3 5 WA LL S T R E E T , N E W Y O R K 5 . AN D OTH ER P R I N C I P A L C I T I E S

Northwestern

B anke r, July,

1947

48

Investments

NEW COMMISSIONER
@

'n e

<
l

tflc c c u

w

t ...

300 CORRESPONDENTS
Through one account in either of Bank of America's main offices
. . . San Francisco or Los Angeles . . . you may reach more than
300 California communities promptly. For Bank of America
serves the people of California on a neighborhood basis, with
branches conveniently located in all parts of the state. This
bank also offers you the facilities of its banking offices in Lon­
don and Manila, and a close correspondent service with other
Western States, Hawaii, and Alaska.

CONDENSED

S T A T E M E N T OF C O N D I T I O N , JUNE 30, 1947
RESOURCES

Cash in Vault and in
Federal Reserve Bank

. . . .

$ 690,072,979.30

Due from B a n k s ...............................
TO TAL

252,881,014.94

C A S H ............................... .

.

.

.

.

$

942,953,994.24

United States Government Obligations,
direct and fully g u aranteed............................................

1,863,621,428.23

State, County, and Municipal B o n d s ...............................

330,652,092.72

Other Bonds and S e c u r i t i e s ............................................

95,081,682.02

Stock in Federal Reserve B a n k .....................................

6,499,400.00

Loans and D is c o u n t s ..............................................................
Accrued Interest and Accounts Receivable . . . .

2,135,842,845.98
18,955,442.77

Bank Premises, Furniture, Fixtures and Safe Deposit Vaults

32,831,047.46

Other Real Estate O w n e d ..................................................
Customers’ Liability on Account of
Letters of Credit, Acceptances, and Endorsed Bills .

42,381,753.98

Other R e s o u rc e s ......................................................................

903,837.79

60,228.31

T O T A L R E S O U R C E S . . $ 5,4 6 9,7 8 3,7 5 3.5 0
LIABILITIES
C a p i t a l ..................................................$

106,646,375.00

S u r p l u s .............................

110,000,000.00

Undivided P r o f its ...........

36,319,807.49

R ese rv es.............................

4,517,630.16

T O T A L C A P IT A L F U N D S ........................................... $ 257,483,812.65
Reserve for Bad D e b t s ........................................................
^
.
Deposits

(Demand . . . . .
j Savings and Time . ,

30,344,694.82

$2,799,941,500.42/
2,313,348,519.07 } 5,113,290,019.49

Liability for Letters of Credit and as Acceptor,
Endorser, or Maker onAcceptances

and Foreign Bills

Reserve for Interest Received inAdvance

.

.

.

.

Reserve for Interest, Taxes, etc............................................

43,358,804.68
11,870,896.38
13,435,525.48

T O T A L L I A B I L I T I E S . . $5, 469, 783, 753. 50
This statement includes figures o f the B a n k ’s offices in London a n d M an ila

M A I N O F F I C E S IN T W O R E S E R V E C I T I E S O F C A L I F O R N I A
SAN FRA NC ISC O
LOS A N G E L E S

i$mxh o f A m e r i c a

Northwestern

FEDERAL

DEPOSIT

Banker, July,


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

INSURANCE

1947

C O R P O R ATI 0 N • M E M B E R FE D E R A L

RESERVE

Nominated
Julien H. Collins, president of the
Chicago investment banking firm of
Julien Collins & Company, has been
nominated as the next president of the
Investment Bankers Association of
America, it was announced by Edward
Hopkinson, Jr., Drexel & Company,
Philadelphia, president of the associa­
tion. Named with Mr. Collins were
the following nominees for vice presi­
dent: Hazen S. Arnold, Braun, Bosworth & Company, Toledo; Robert W.
Baird, The Wisconsin Company, Mil­
waukee; Hal H. Dewar, Dewar, Rob­
ertson & Pancoast, San Antonio; Carey
S. Hill, Hill Richards & Company, Los
Angeles, and Laurence M. Marks, Laur­
ence M. Marks & Company, New York.
Nominations, made by the board of
governors of the association, are con­
sidered tantamount to election in the
I.B.A., which will act on the ticket at
its annual convention scheduled for
November 30th to December 5th at
the Hollywood Beach Hotel, Holly­
wood, Florida.

Promoted

NATIONAL savings ASSOCIATION

(EMBER

STERLING ALEXANDER (above),
attorney from Webster City, Iowa,
assumed His new duties as Com­
missioner of Insurance and Securities
in Iow a the first o f July follow ing
his appointment by Governor Robert
Blue.
Mr.
Alexander
succeeds
Charles Fischer, who served as com­
missioner for a period of eight
years. As this issue goes to press,
Commissioner Alexander has not an­
nounced his choice for deputy com­
missioner succeeding Ralph Knudsen, who acted as head of the securi­
ties department, until July 1st.

SYSTEM

E. Leslie Bloom has been promoted
to assistant cashier in the correspond­
ent bank division of the First National
Bank in St. Louis. He has been with
the bank for 25 years.

49

INSURANCE
1 1 7 # # / .

l l

/

i f 'i T

a n d H ow

.

to Sell F id elity H oods
Just Like Selling Other Lines— the
Agent Should Know His Subject
By JAY J. REYNOLDS
Supt. Fidelity & Surety Dept.
New Amsterdam Casualty Co.
Chicago
any of the president’s insurance busi­
ness or that of his company.

T HE casualty business today finds
itself in a strange position. Many
companies are offered more busi­
ness of certain classes than they want
to write. Agents are experiencing
some difficulty in finding an open mar­
ket for certain lines, normally highly
favored by the companies. The situa­
tion can become worse.
The wise agent will use this situa­
tion to his own advantage by devoting
more time and effort to the develop­
ment of those lines to which there is
less resistance and on which the re­
turn is good, and the renewals.better
than ordinary, such as fidelity bonds.
The purpose here will be to point
out how and where fidelity bonds may
be written, as well as why, from an
agent’s standpoint. About the best rea­
son why they should be written is the
preservation of the agent’s own busi­
ness. He should never fail to explain
fully to every customer, whose patron­
age he prizes, the purpose of and the
need for fidelity bonds.
An experience of an agent in a cen­
tral Illinois city will serve to illustrate
what I mean. This party represented
a company with which I was con­
nected. Upon arriving in town, my
attention was attracted by the headline
on a local newspaper, viz.: “Assistant
Treasurer of Local Corporation Con­
victed of Embezzlement.” I inquired
from our agent if he was acquainted
with the president of the local corpora­
tion, and was informed that he was;
in fact, they belonged to the same club
and occasionally played golf together,
but he had never been favored with

An I l l u s t r a t i o n
I prevailed upon the agent to call
on the president and to take me with
him. As you may have guessed, we
found him in a bad mood; the loss
approximated $40,000, little solace had

J A Y J. R E Y N O L D S
“ F it the Prospect’ s N eeds”

come from the conviction of the for­
mer officer of his company, but what
was worse, his pride had been hurt;
he had been outwitted and felt that he
was guilty of an unpardonable mis­
take for having selected a man for a

Did you know there’s a gap in your Cash Letter
protection that you could “drive a truck through?”
Ask us how to bridge it without costing you a
cent.
F IR S T

N A T IO N A L


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Federal Reserve Bank of St. Louis

BANK

B U I L D IN G

•

C H IC A G O

position of trust who had proved him­
self unfaithful. He was also thinking
of what he would tell his stockholders.
There was a disposition on his part to
blame his insurance man for at least
a part of his troubles. He had relied
upon his agent’s guidance in insurance
matters and had purchased from him
every kind of insurance that the haz­
ards of his business seemed to require,
except fidelity bonds, of which he was
now so sorely in need. The result was
that our agent got an order for a $750
fidelity bond premium, and within a
comparatively short time received ad­
ditional insurance premiums of several
thousands of dollars. One lesson from
this is that you should not permit a
competitor to take care of the fidelity
insurance needs of your clients. If he
gets his foot in the doorway, he may
“boot” you out. Another lesson is that
you should put the fieldmen, who call
upon you from time to time, to work.
Make up a list of your customers for
whom you have no fidelity bonds, and
also those for whom you have; more
than likely you will agree that the
amounts of the bonds you have written
are too small for adequate protection.
Take the special agent along a few
times; two heads are better than one.
Do not go out with the intention of
working various lines. You will be
surprised, however, with the number
of orders in other lines that you may
pick up at the same time. Go prepared
with a “horrible example” such as a
headline from a local paper, if possible.
It will help to fix the prospect’s atten­
tion on the subject.

Scarborough & Company
Insurance Counselors
3, IL L IN O IS

•

STATE

to Banks

4325
N o r th w e s t e r n Banker, July,

19 4 7

50

Insurance

Of all the agents in that Illinois city,
none of them seemed to recognize that
headline in the newspaper as being of
value to them. At least none of them
used it in the case mentioned herein.
Even our own agent, notwithstanding
a good gain from the “kick-off” fum­
bled the ball on the five-yard line; and
after I left town, slid back to pursue
the even tenor of his way by taking
orders, if they came in, instead of fol­
lowing through on other prospects at
an opportune time.
I wonder how many agents who read
Life Magazine, issue of November 18,
1946, recognized the value to them, of

the illustrated story on page 44. That
story sets forth the need for fidelity
bond protection more eloquently than
all the oratory of a “silver tongued”
salesman slinging salvoes of sales talk
could ever hope to do.
People have the habit of buying life
insurance because they have seen the
old homestead (either theirs or their
neighbor’s) go up in smoke. An em­
bezzler works like a thief in the night,
under cover, with little publicity. The
result is that insurance against such
risks is not as commonly bought as fire
insurance and must oftener be sold.
In the article of November 18, 1946,

------------------------------------------------------------------------------------------------- - N

assure y ° ur customers still w ider acceptance o f Am erican ExPress Travelers Cheques, m ore than 100,000 brochures have just
-amu.s JI been m aq ecj to hotels, vacation resorts, tourist camps, departm ent
stores and gasolin e filling stations.
Inside the brochure a full size A m erican Express Travelers Cheque is
show n w ith an exam ple o f just h o w a Travelers Cheque should be counter­
signed and accepted w ith ou t risk o f loss. It emphasizes that n o identification
is required exceptin g this countersignature.

the loss was $750,000. There was a
bond of $5,000. Try to get a copy of
that issue and use it with your pros­
pects. If the prospect has fidelity
bonds, it will most certainly cause
him to think about increasing them.
—The End.

To Heip Home Buyers
Three new plans designed to bring
low cost life and disability insurance
to home buyers through the mortgage
lending institutions which hold their
loans have been announced by Occi­
dental Life Insurance Company of
California.
Two features that set the new Occi­
dental “Home Security Plans” apart
from existing insurance of this type,
according to Occidental Home Office
executives, are:
1. The use of group insurance or
wholesale insurance provided through
the lending institution to give its com­
mon borrowers a low cost coverage
that will pay off the remaining mort­
gage debt at death, and
2. Inclusion of disability insurance
which provides monthly benefits to
the borrower to pay his mortgage in­
stalments while he is laid up from acci­
dental injury or sickness.
Evidence from its own files of the
large numbers of persons who die
without provision for paying off their

We are proud of our record
in the Insurance field and of
our Banker Representatives.

This nation-w ide circularization assures im m ediate acceptance o f A m er­
ican Express Travelers Cheques in out-of-the-w ay places as w ell as at urban
hotels and other establishments serving vacationists and business travelers.

We write a complete line of

They help pave the way for grea ter-th a n -ev er vacation -tim e sale o f
Am erican Express Travelers Cheques by your bank.

bile & Plate Glass Insurance

They are a logica l part o f the trem endous national advertising and p r o ­
m otion program s o f A m erican Express Travelers Cheques—a progra m w hich
makes Am erican Express Travelers Cheques the most w id ely accepted o f all
Travel Funds.
W rite to W . H. Stetser, V i c e P r e s i d e n t , A m erican Express C om pany, 65
B roadw ay, N ew Y ork 6, N . Y ., for the broadside that shows the newspaper
mats available to help you capitalize on this national program through you r
bank’s local advertising.

A

m e r ic a n
T r a v e le r s

Northwestern

B a n k e r , J u l y , 1947


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Federal Reserve Bank of St. Louis

E

x p r e s s

C h eq u es

Fire - Windstorm - Automo­

WESTERS MUTUAL
FIRE INSURANCE COMPANY
NINTH & GRAND

DES MOINES 8, IOWA

“ Mutual Insurance ts American
Insurance”

Insurance
home mortgage indebtedness or be­
come delinquent in their monthly in­
stalments due to loss of income from
accident or illness prompted Occiden­
tal to design these broad new cover­
ages, company executives said.

Research Director
The appointment of John B. Payne
as director of research of the Mercan­
tile-Commerce Bank and Trust Com­
pany, St. Louis, Missouri, was an­
nounced by Gale F. Johnston, presi­
dent.
Mr. Payne comes from New York
where for some seventeen years he
served as advisor on management to
the policyholders’ service bureau of
the Metropolitan Life Insurance Com­
pany.

Stock Vâlue Up
The board of directors of Northwest­
ern National Life Insurance Company
of Minneapolis, Minnesota, has voted
to increase the par value of the com­
pany’s capital stock from $7.50 to $10
a share, which increases its capitaliza­
tion from $1,650,000 to $2,200,000. This
was effected by transferring $550,000
from surplus of the stock department
to capital account, thereby increasing
the permanent cushion of safety for
policyholders in both the mutual and
stock departments in line with the
company’s growth, according to O. J.
Arnold, president. No increase in the
amount of dividend per share of stock
is contemplated at this time regard­
less of the increase in par value, Mr.
Arnold said.

MINNESOTA CONVENTION

(Continued from page 22)
for them and the community when
they need advice and financial aid.
A memorial in honor of the late
William (Bill) Duncan, Jr., former sec­
retary of the Minnesota Bankers Asso­
ciation, was read by M. O. Grangaard.
A.B.A. President C. AV. Bailey, presi­
dent of the First National Bank,
Clarksville, Tennessee, delivered his
now famous talk, “ Challenge to Bank­
ing,” as the first address of the after­
noon session.
G. S. Houston, vice president of the
First Service Corporation in Minne­
apolis, threw a wet blanket on pessi­
mists who are predicting a real de­
pression. Mr. Houston said there is
no indication of breakdown stage in
the American economy and added that
evidence indicates there will be only
a gradual adjustment in business oper­
ations “with no sudden break in the
over-all price structure and no heavy
unemployment.” Citing the steel in­
dustry as a traditionally accurate in­
dicator of business trends, Mr. Hous­
ton said estimates are that demands

Safe Deposit Convention
The New York State Safe Deposit
Association will be host to bankers and
safe deposit personnel from all over
the country, at its 1947 convention to
be held at the Waldorf-Astoria on
October 3rd and 4th.
As this convention will immediately
follow the A.B.A. convention at At­
lantic City and just precede the Finan­
cial Advertisers Association Conven­
tion, which will also be held at the
Waldorf, the banking fraternity will
be afforded a convenient opportunity
to hear safe deposit problems dis­
cussed by the leaders in this field.

“ALLIED MUTUAL’S
Low-cost, Non-assessable

FARM LIABILITY POLICY
helps my farm clients 3 ways"
Says the ALLIED MUTUAL AGENT
1 .

A ssu m es Farm er's liability for injury,
death or d am age to the public.

2 .

A ssum es Farm er's liability for injury,
death or d am age to hired help.

3 .

P ays doctor bills up to $250 for ow n
injuries sustained on farm.


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Federal Reserve Bank of St. Louis

INVESTIGATE TODAY

ALLI ED M U T U A L
CASUALTY

for steel exceed three years capacity
production in this industry.
Norris K. Carnes, general manager
of Central Co-Operative Association in
South St. Paul, told bankers at the
meeting that the United States is in
the process of making one of the most
fundamental decisions in history. The
people, he said, must decide whether
the New Deal wartime policy of gov­
ernment controlling of our lives and
livelihood shall become a permanent
part of our social and economic struc­
ture. His conclusions were that Presi­
dent Harry A. Truman is carrying out
this philosophy.—The End.

Longer life for people
past 40
At the left above is a normal adult
kidney. The odds are better than 200
to 1 that both of yours are in this same
healthy condition.
The other is a kidney shrunken to
about half normal size as a result of
“ Bright’s disease” — the common term
for any of several kidney ailments. As
recently as 20 years ago these were
hopelessly incurable. But modern treat­
ment results in encouraging improvment and in a large percentage of cases
the man or woman with kidney disease
may enjoy many extra years of com­
fortable living.
A little over 100 years ago the
English physician Richard Bright
showed the connection between dropsy
and diseased kidneys. The century of
medical progress since then has rad­
ically improved the lot of man on earth
—at first through a sharp reduction in
infant mortality, more recently through
an increase in the life expectancy of
older persons.
This brighter prospect for the mid­
dle-aged comes from geriatrics, the
science of helping older people enjoy
life longer.
Full enjoyment of later years calls
for financial solvency, best attained
through a sound program of savings
and life insurance. Your NWNL agent,
paid not primarily for how much insur­
ance he sells you but for what you keep
in force, has a strong interest to provide
you with just the kind and amount of
life insurance you need and can afford.

COM PANY

Harold S. Evans, President
Hubbeli Building

51

Des Moines 7, lows

N o r t h w e s t e r n ^ V aU rnicd Lif e
I N S U R A N C E M ÉÉ^, C O M P A N Y

9

NEAfO
USM
INNISO
TA

N o r th w es t e r n Banker, July,

1947

52

Statement of Condition
June 30, 1947

RESOURCES
Cash and Due from Banks.........................................................................$103,554,695.04
U. S. Government Obligations"................................................................. 135,062,494.66
Other Bonds and Securities*......................................................................
17,102,763.75
Loans and Discounts...................................................................................
89,766,81 / .74
Stock in Federal Reserve Bank.................................................................
450,000.00
Customers’ Liability on Acceptances........................................................
767,527.17
Income Earned but not Collected............................................................
799,390.44
Banking House. . . . 7 ...................................................................................
3,350,000.00
Other Resources.... ........................................................................................
31,384.46
Total Resources..................................................................................... $350,885,073.26

LIABILITIES
Capital Stock.................................................................................................$ 5,000,000.00
Surplus............................................................................................................
10,000,000.00
Undivided Profits.........................................................................................
1,420,984.59
Reserve for Contingencies..........................................................................
3,732,459.55
Total Capital Accounts...............................................................................

20,153,444.14

Reserve for Interest, Taxes, etc.................................................................
1,403,576.27
Income Collected but not Earned.............................................................
783,839.97
Letters of Credit and Acceptances............................................................
767,527.17
D eposits....................................................................................... ................. 327,776,685.71
(Deposits include U . S. Government War Loan Account $ 1 ,9 86,809.25)

Total Liabilities..................................................................................... $350,885,073.26
♦United States Government and other securities carried at $36,653,377.39 are pledged
to secure U. S. Government War Loan Deposits and other public funds and trust
deposits and for other purposes as required or permitted by law.

N a t i o n a l

B a n k

o f

M i n n e a p o l i s

Minneapolis 2, Minnesota

DIRECTORS
Jam es F . B ell
Chairman of Board,
General Mills, Inc.
B enton J. C ase
Director, Janney, Semple,
Hill & Company
C larence R . C h a n e y
Vi^e Chairman of Board,
Northwestern National
Bank of Minneapolis
G eorge B. C lifford , Jr .
Treasurer, The Cream of
W heat Corporation
John C rosby
Director,
General Mills, Inc.
T homas L. D a n ie ls
Executive Vice President,
Archer-Daniels-Midland
Company

G. N elson D ayton
President,
The D ayton Company
Steph en P. D u ffy
President,
Hall Hardware Company
John B. F aegre
Faegre and Benson,
Attorneys
F r a n k T . H effelfinger
Chairman of Board,
F. H . Peavey and Co.
F. P e a v e y H effelfinger
Executive Vice President,
F. H . Peavey and Co.
C lar enc e E. H ill
Chairman of Board,
Northwestern National
Bank of Minneapolis

F r a n k P. L eslie
Vice President and
Treasurer,
The John Leslie Paper Co.
C h ar les C. M assie
President, Northrup, King
and Company
R obert F. Pack
Chairman of Board,
Northern States Power
Company
Joh n S. P illsbu ry
Chairman of Board,
Pillsbury Mills, Inc.
Joseph F. R ingland
President, Northwestern
National Bank of
Minneapolis
L u c ia n S. Strong
President and Treasurer,
The Strong Scott
Manufacturing Co.

Member Federal Deposit Insurance Corporation

N o r t h w e s t e r n B an ke r, J u l y , 1947


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Federal Reserve Bank of St. Louis

D . J. S trouse
President, Twin City Rapid
Transit Company
H arold W . Sw e a tt
President,
Minneapolis-Honeywell
Regulator Company
H arold H . T earse
Vice President and’General
Manager,
Searle Grain Company
J. C a m er on T homson
President,
Northwest Bancorporation
V a le n t in e W urtelé
President,
Minnesota Linseed Oil
Paint Company

53

Minnesota

N EW S
JOHN CARLANDER
President
Faribault

Leaving Duluth
Thomas A. Paulson, assistant vice
president of the First and American
National bank in Duluth, Minnesota
since 1941, except for four years spent
with United States armed forces during
World war II, has resigned to assume
a similar position with the SecurityFirst National bank, Los Angeles,
California.

Bank Debits Increase
Bank debits in the Northwest are
maintaining their increase and last
month a Federal Reserve Bank survey
showed they are 25 per cent over those
for the first five months of last year.
Minnesota banks showed a 21 per
cent increase in debits from $1,424,260,000 in May of 1946 to $1,723,906,000.
Highest increase in the district was
31 per cent in South Dakota, where
debits in May, 1947 were $155,779,000
compared to $119,114,000.
The five-months figures for the 10
high cities of the district show:
Minneapolis 4V2 billions.
St. Paul 2 billions.
Duluth 454 millions.
South St. Paul 347 millions.
Sioux Falls 319 millions.
Fargo 273 millions.
Butte 176 millions.
Great Falls 172 millions.
Eau Claire 153 millions.
Bismarck 153 millions.

ROBERT E. PYE
Secretary
Minneapolis

Chaska; Erwin Holtmeier, cashier,
Victoria State Bank; Herbert Dols,
cashier, State Bank of Cologne; W. A.
Nuernberg, cashier, State Bank of
Young America; C. H. Ortlip, cashier,
First National Bank, Waconia, and
Assistant Cashiers R. W. Dols, of
Chaska, and Ben Hartman of Waconia.

Increase Interest Rate
Selmer L. Jerpbak, president of the
Richfield State Bank and Trust com­
pany, Minneapolis, has announced that
the bank is increasing its interest rate
from 1 to 2 per cent on savings and
time certificates.
The action, taken at a meeting of
the board of directors, was the first
step taken by a local bank, he said,
to increase its interest rate to meet
the competition of savings and loan
associations.
“We believe we will make $1,000,000
worth of real estate loans on homes
in this area in the next year,” Mr.
Jerpbak said. He reported deposits of

STUDENTS DESIGN HOMES

Honored on Birthday
C. H. Klein, prominent Chaska, Min­
nesota businessman, was honored on
his 75th birthday anniversary last
month when the cashiers of the seven
Minnesota banks of which he is presi­
dent, presented him with a beautiful
wristwatch at a surprise party com­
memorating the occasion. Mr. Klein is
still very active in the business field.
In addition to his bank holdings, he
is head of the Chaska brick industry
as well as several other manufacturing
concerns.
Those participating in the presenta­
tion were: L. A. Nikolai, cashier, Klein
National Bank, Madison, Minnesota;
W. A. Brunert, cashier, Security Na­
tional Bank, Montevideo; Charles De­
gen, cashier, First National Bank,

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

the bank, which opened February 3,
have increased to $1,065,000 with total
assets of $1,192,000.

Martin J. Solberg
Martin J. Solberg, 83, vice president
and director of the Western National
Bank, Duluth, died last month. He
had been associated with the bank for
25 years as director. About 10 years
ago Mr. Solberg retired as a retail
clothing merchant. He is survived by
his wife and several nieces and ne­
phews.

Named Director
Dr. Carl G. Burton was named a
director of the St. Paul Federal Savings
and Loan Association recently. A
prominent St. Paul physician and sur­
geon, Dr. Burton is on the board of
the Northwest Hospital Association
and is chairman of the Bethel Institute
and Seminary.

Leave for Europe
Harry A. Bullis, president of General
Mills, and a newly elected director of
Northwest Bancorporation has de­
parted for a six-week tour of Europe
during which he will attempt to get
a first-hand picture of food require­
ments and the general economic condi­
tions of European countries.
He was accompanied by Henry Kingman, president of the Farmers and
Mechanics Savings Bank of Minne­
apolis and a member of the General
Mills board of directors.
They will confer with economic and
industrial leaders of the countries
visited as well as with the company’s
foreign customers and leaders in the
milling and baking industries.
The first country they were to visit
was Sweden. Discussions with Swedish
leaders will be followed by a swing
through Denmark, the Netherlands,
Belgium, France, Switzerland a n d
Great Britain.

Increase Board to Six
USEFUL FEATURES of a mod­
ern home are pointed out by archi­
tectural student Robert Bennighof
(center) in his model home which
took first place in a Northwestern
National Bank Home Institute com­
petition staged at the University of
Minnesota in Minneapolis. Admir­
ing the structure is ex-GI Norman
P. Bjornnes, holding his son Jon,
and Mrs. Bjornnes.
The Home Institute
awarded
prizes amounting to $100 to four
University o f Minnesota students for
outstanding work in building model
homes in the contest staged this
spring. Models have been placed
on display in the newly redecorated
Home Institute division of the bank.

Two additional members were
elected to the board of directors of the
Union State Bank, Montevideo, Minne­
sota, at a special meeting of stock­
holders recently. Membership of the
board is increased from four to six
members, with B. J. Oyen, municipal
judge of the city of Montevideo, and
R. J. Knobloch, superintendent of con­
struction for the Northern States
Power company elected as new mem­
bers. Other members include Roland
H. Aaker, owner of the Central bakery,
John A. Nelson, farmer living east of
Montevideo, Charles O. Bennett, presi­
dent, and Orin Samstad, vice president
and cashier of the bank.
Northwestern

Banker, July,

1947

54

Minnesota News

William A. Mah!
William A. Mahl, 72, chairman of
the board of directors of the First
National Bank of Winona, Minnesota,
died of a heart attack last month.
Mr. Mahl was in his 55th year at
the bank, having joined the institu­
tion’s staff April 1, 1893, as a mes­
senger. He rose successively through
many positions, becoming president in
August 1, 1937, and chairman of the
board of directors January 1, 1940.

Open House in Minneapolis
Open House for the inspection of
newly modernized banking facilities
and the bank building was held late
last month by the Fourth Northwest­
ern National Bank in Minneapolis. The

open house period was from 7 to
9 p. m. and drew a large crowd of
banker friends, customers and the
general public.
Officers of the Fourth Northwestern
are: Clyde M. Jorgensen, president;
Frederick O. Glasoe, vice president, C.
Phillip Anderson, cashier, and Claudia
Dahl, O. H. Grettum and R. E. Myhre,
assistant cashiers.

I, 1917 and has served in this capacity
ever since the bank opened. The bank
started with capital of $10,000 and
$2,500 surplus. Capital stock was in­
creased by $10,000 a year ago.
Officers of the bank at present are:
J. R. Blomquist, president; H. B. Gun­
derson, vice president; Mr. Schafer,
and L. C. Hemmelgarn and Victor M.
Houglum, assistant cashiers.

Thirtieth Anniversary

Increase Surplus

The Farmers State Bank of Waubun
was 30 years old last month. Its
financial growth has kept pace with its
age, with deposits at $850,000 and total
capital structure of $30,000.
Cashier S. J. Schafer was one of the
original organizers of the bank on June

R. L. Smith, president of the Stock
Yards National Bank, South St. Paul,
Minnesota, has increased the surplus

M odern
M

W IL L

eth o d s

with

M odern M achines

Our more abundant way of life is largely
due to the more economical production
of our basic industry—farming—in providingfood, fibre, and oils to feed a hungry
world and to supply the raw materials
for an ever-increasing number of indus­
trial products. Farmers, realizing the in­
creasing importance of economical pro­
duction, are using Modern Methods to
improve and to retain the fertility of the
soil and thereby to increase production
and farm income.
The MM trademark is recognized by

“P ta c U tc e

")fC < v te

farmers everywhere as the
symbol of quality. M M M o d e r n
M a c h in e s have established a reputation
for economy, dependability, and out­
standing performance. This is particu­
larly true of MM H a r v e s t o r s .
Your friendly MM dealer has the com­
plete facts on MM Machinery, Tractors,
and Power Units for farm use. See him
the next time you are in town. MM
equipment is worth waiting for!

“ Bank

R. L. S M I T H
M akes Excellent P rogress”

of his bank $50,000 which now gives
his institution a surplus of $500,000.
The capital of the bank is $250,000,
undivided profits and reserve $191,422,
and deposits of over $17,600,000.
On July 1 of this year, the bank
celebrated its 50th anniversary.
The officers of the Stock Yards Na­
tional Bank are as follows: R. L. Smith,
president; A. A. Bibus and J. C. Moore,
vice presidents; A. T. Larson, cashier;
and C. W. Messenger, J. J. Womack,
Robert Kockendorfer and Richard Peavey, assistant cashiers.

Purchase Lake Park Bank

Minneapolis -M oline P ower I mplement C ompany
M IN N E A P O L IS

Horthwestern

Banker, July.


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Federal Reserve Bank of St. Louis

19 4 7

1. M I N N E S O T A . U. S. A.

Five Lake Park Minnesota men have
purchased the stock of the State Bank
of Lake Park from the Northwest
Bancorporation and O. B. Rusness,
Moorhead, controlling stockholders.
The bank was founded in 1926 and
has capital stock of $25,000. The new
stockholders are: M. A. Rogness, H. G.
Torgerson, William Togerson, Oscar J.
Olson and Leonard Jordahl.

55

as at June 30, 1947

F irst N ation al B an k o f M in neapolis
DIRECTORS

RESOURCES

$ 89,637,177.30

Cash and Due from Banks
United States Government Securities
Other Bonds and Securities
Loans and Discounts

.

158,589,443.50

.

14,156,825.54

.
.

.

73,900,750.98

.

Accrued Interest and Accounts Receivable

844,788.95

Customers’ Acceptance Liability

965,727.25

.

Bank and Office Buildings

218,173.32

Other Real Estate (Future Building Site)

530,650.00
$338,843,536.84

LIABILITIES
6 ,000,0 00.00

Capital S t o c k ......................................... $
S u r p l u s .................................................

11,000,000.00

Undivided P r o f i t s .................................

3,238,374.74

Unallocated Reserves

1,802,543.96

.

.

.

.

2,211,321.09

Reserve for Interest, Expenses, Taxes, etc.
Acceptances and Letters of C redit.

965,727.25

Other L i a b i l i t i e s .................................

212,783.57

Deposits (Includes U. S. War Loan
Deposit of $3,444,846-33) .

.

313.412,786.23
$338,843,536.84

Henry E. Atwood, President
Atherton Bean,
Executive Vice President,
International Milling Co.
Russell H. Bennett, Mining Engineer;
Treasurer, Meriden Iron Co.
Daniel F. Bull, President,
The Cream of Wheat Corp.
J. G. Byam, Vice President
John Cowles, President,
Minneapolis Star and Tribune Co.
Donald D. Davis, President,
Minnesota and Ontario Paper Co.
Paul V. Eames, President,
Shevlin, Carpenter & Clarke Co.
Harry J. Harwick, Chairman,
Mayo Association, Rochester, Minn.
John H. Hauschild, Chairman of
the Board, Chas. W. Sexton Co.
Horace M. Hill, President,
Janney, Semple, Hill & Co.
W. L. Huff,
Executive Vice President,
Minneapolis-Honeywell
Regulator Co.
C. T. Jaffray, Chairman of the Board,
First Bank Stock Corporation
John H. MacMillan, Jr., President,
Cargill, Inc.
Sumner T. McKnight, President,
S. T. McKnight Co.
Howard I. McMillan, President,
Osborne-McMillan Elevator Co.
W. G. Northup, President,
North Star Woolen Mill Co.
S. G. Palmer, Retired
A. F. Pillsbury, Director,
Pillsbury Mills, Inc.
H. R. Weesner, Chairman of the
Board, The Wabash Screen Door Co.
F. B. Wells, 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.

United States Government obligations and other securities carried at $70,375,625.00 in the foregoing statement
are deposited to secure public funds andfor other purposes required by law.
M EM BER


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

FED ERAL

D E P O S IT

IN S U R A N C E

C O R P O R A T IO N

• A F F IL IA T E D

W IT H

FIR ST

BANK

STOCK

C O R P O R A T IO N

N o r t h w e s t e r n B anke r, July,

1947

56

Minnesota News

Named University Trustee

A M E R IC A N N A T IO N A L B A N K
A N D

T R U S T

C O M P A N Y

O F C H IC A G O
LA S A LLE STREET ^

AT W A S H I N G T O N

Member Federal Deposit

Insurance Corporation

S¡¡0
STATEMENT OF CONDITION
AT THE CLOSE OF BUSINESS JUNE 30, 1047

RESOURCES
Cash and due from h a n k s .................................... $ 56,151,866.14
United States Government obligations — direct
60,225,235.89
and fully guaran teed.........................................
Municipal and other marketable securities . .
22,488,223.61
Loans and d isc o u n ts..............................................
67,134,512.68
Federal Reserve Bank stock ...................................
210,000.00
Customers’ liability on letters of credit and
a c c e p ta n c e s........................................................
538,830.67
Accrued interest receivable....................................
343,651.10
Other a s s e t s .............................................................
* 79,967.16
$207,172,287.25

Henry V. Bruchholz, vice president
of First National Bank of Minneapolis,
recently was elected to the board of
trustees of Hamline University, St.
Paul. He will serve on the board until
1948, subject to re-election at that time.
Mr. Bruchholz’ banking career dates
from 1915, when he joined the staff of
Minneapolis Trust Company, which
later was consolidated with the First
National. Active in Minneapolis civic
affairs, he is a member of the official
board of Hennepin Avenue Methodist
Church; Board of Directors, Asbury
Hospital; board of trustees, Minne­
apolis Y.W.C.A.; executive board, Min­
neapolis Area Council, Boy Scouts of
America; and treasurer and a trustee
of The Minneapolis Foundation.

On Dawson Bank Board
Announcement was made recently
of the appointment of Dr. Vilhelm
Johnson as a director of the North­
western State Bank, Dawson, Minne­
sota, to fill out the unexpired term
of the late Dr. C. M. Johnson. The
appointment was made at a recent
meeting of the bank board of directors.

Elect Winona A.i.B. Officers

LIABILITIES
Capital sto c k .............................................................
Surplus.......................................................................
Undivided p r o f i t s ...................................................
Reserves for taxes, interest, contingencies, etc. .
Unearned discount...................................................
Other liabilities................................................... .....
Liabilities on letters of credit and acceptances .
Deposits:
Demand............ $177,070,443.05
United States Government
.
650,958.47
Other public funds . . . .
2,834,016.11
Sav in g s.........................
16,003,860.19

3.000. 000.00
4.000. 000.00
621,066.75
1,528,036.49
762,633.82
162,441.70
538,830.67

196,559,277.82
$207,172,287.25
United. States Government obligations and other securities carried at $17,020,526.26 are pledged
to secure public and trust deposits and fo r other purposes as required or permitted by law

.

B. J. Snyder, First National Bank,
was re-elected president of Winona
Chapter American Institute of Bank­
ing at the annual banquet last month
at the Winona Country Club.
Other officers re-elected were W. M.
Lambert, Winona National and Savings
Bank, first vice president; Miss Gladys
Thayer, Merchants National Bank,
second vice president, and Miss Marion
Griesbach, First National Bank, secre­
tary-treasurer. Norman Schellhas of
the Merchants National Bank and Judson Scott of the Winona National and
Savings Bank were elected members of
the board of governors.
Other members of the board are
Harry Kowalczyk, Merchants National
Bank; Chester Fockens and Elgin Sonneman of the First National Bank, and
Miss Doris Maliszewski of the Winona
National and Savings Bank.

Cashier of Empire National

SPECIAL OFFER
Accident Insurance, $5000 Principal Sum for
only $2.00 Paid Up in Full to the Middle of
next December.
MINNESOTA COMMERCIAL MEN'S ASSOCIATION
2550 Pillsbury Ave. So.

Northwestern

Banker, July,


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

1947

Minneapolis 4, Minnesota

H. William Blake was elected vice
president and cashier of the Empire
National Bank and Trust Company, St.
Paul, last month. He succeeds the
late C. T. Dedon. Announcement of the
promotion was made by C. E. Johnson,
president of the bank, following a
meeting of the board of directors. Mr.
Blake is a graduate of the law school
of the University of Minnesota, class
of 1929. For three years he was asso­
ciated with the Northwestern National
Bank of Minneapolis. In 1932 he joined
the Empire National Bank as vice
..president and trust officer.

Minnesota News

M

ERTH E. MORTENSON, cash

ier of the Marquette National
Bank of Minneapolis, has been
elected vice president of the Minne­
apolis Retail Credit Association.
Banks in the Upper Midwest are
being offered a personnel placement
service. Originator of the new service
is George Richter who established
offices at the First National Bank
building at St. Paul after several years
in industry and business.
M. O. Grangaard, vice president of
the First National of Minneapolis, re­
cently was host to Gustaf Brunkman,
vice president and director, and Tore
Browaldh, secretary of the A. B.
Svenska Handelsbanken of Stockholm,
Sweden. The Swedish bankers are
making a study of American banking
in a number of cities.

C. M. Ostrum of Farmers & Mechan­
ics Savings Bank has been elected
president of the Twin City Bank
Auditors and Comptrollers.
A. S.
Anderson of Midway National Bank
was elected vice president. W. A.
Mattson of Midland National was
elected secretary and W . Haugberg of
the First of St. Paul was named treas­
urer.
The organization held its annual
election at Mankota where it met in
honor of three Mankato bankers who
have been members of the Twin Cities
organization.
Lyman E. Wakefield, Jr., assistant
cashier of the First National of Minne­
apolis, has been elected secretary of
the United States Figure Skating
Association.
Ernest W. Swanson, vice president

of the Federal Reserve Bank of Minne­
apolis since 1936, resigned recently to
retire after more than a quarter cen­
tury in Minnesota banking. H. G. Mc­
Connell succeeds Swanson as manager
of the bank examination department.

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

By

57

members from 425 larger banks in the
nation, for many years.

E. W. KIECKHEFER
Special Correspondent

Heads Slayton Bank

Northwestern Banker

Clarence R. Chaney, vice president
of the Northwestern National of Min­
neapolis, has been elected moderator
of the Congregational conference of
Minnesota.
Julian B. Baird, president of the
First National of St. Paul, has been
elected president of the Association of
Reserve City Bankers. Baird has been
active in the association, composed of

L ook

C. B. Newman, Dodge Center, Minne­
sota, has been named president of the
Murray County State Bank, Slayton.
He succeeds R. P. Howe, who has
been made executive vice president of
the Guaranty Bank & Trust Company,
St. Cloud.
Mr. Newman had been vice president
of the Dodge Center State Bank since
1940. A. C. Bell, cashier of the Dodge
Center bank for many years has been
promoted to manage the bank.

to

C A N A
A N A D A has emerged from the war rich in
natural resources, industrial equipment and
manufacturing know-how. Today she is a poten­
tial supplier o f raw materials and a wide variety o f
manufactured goods. Should you wish to investi­
gate Canada as a source o f supply, or a potential
market for your customers, we can help you. Our
branches serve every part o f Canada from coast to
coast. Our Business Development Department is
a mine o f information. At Head Office we operate
a Credit Information Bureau on a world-wide basis.
All o f these services are available to you.

C

The Ro y a l

Ban

k

of

C

anada

Incorporated 1869

HEAD O F F I C E - M O N T R E A L
New York Agency — 68 William Street
Norman G . Hart— Agents— Edward C . Holahan
Branches throughout Canada and Newfoundland, in the West
Indies, Central and South America— Offices in London and Paris
Total assets exceed $2,000,000,000

Northwestern

B anke r, Ju ly ,

1947

58

Minnesota News

Given Testimonial Dinner

Kinyon, S. W. Kinyon, R. S. Banfield,
A. C. Chapman and Julius H. Meyer.

Miss Mae E. Brewster, assistant
cashier of the First National Bank,
Owatonna, Minnesota, was given a
tribute of recognition on the thirtieth
anniversary of her affiliation with the
institution at a testimonial dinner last
month. She was presented with a pearl
necklace by directors, officers and em­
ployees.
Oldest employee in years of service,
Miss Brewster became a member of
the First National Bank personnel on
June 4, 1917.
She served with five presidents of
the institution. They are: George R.

USE NEW MACHINE

Reorganize St. Cloud Bank
At a special meeting of the Guaranty
State Bank and Trust Company, St.
Cloud, Minnesota, the board of direc­
tors of the bank was increased from
five to ten.
All the former directors consisting of
Harold W. Riley, John A. Henry,
Christian Hauck, William S. Weber
and William P. Hilger were re-elected
and the following were added: G.
Robert Herberger, Robert P. Howe,

Miss Berma Cooper, head teller
at the Marquette National Bank,
Minneapolis, is shown presenting
Charles R. Thiss (o f the Thiss Lug­
gage Stores) with the first mechan­
ical deposit receipt made out at the
bank. The machine at Miss Coop­
e r ’s left has eliminated the oldfashioned bank pass book. Marquette
is the first Minnesota bank to
install this Burroughs Teller Re­
ceipting device.

REPORT OF THE CONDITION OF

*7Ae Jlive Stoc-Jz J\l
aiio4tcd Bank
SIOUX C IT Y , I OWA
At the close of business June 30, 1947
RESOURCES
Loans and Discounts .......... .....................................................................................................$ 2,726,225.99
United States Bonds and N otes........................................................................................... 14,252,325.55
M unicipal Bonds ..........................................................
550,472.81
Other Bonds and Securities...................................................................................................
488,373.17
Federal Reserve Bank Stock..................................................................... ............................
24,000.00
Interest Earned, Not C ollected.............................................. ............ .............. ...................
75,879.40
Cash on H and and Due from Banks............................................................. .................... 10,693,316.86
328.810.593.78
LIABILITIES
Capital Stock .................................................................................................................. ............. $
400,000.00
Surplus ........ ........................................................................................................ ............. ...........
400,000.00
Undivided Profits ........................................................................................
99,346.19
Reserve for Contingencies.......................................................................................................
122,293.37
Reserves for Interest and Taxes, etc.................................................................................
101,963.27
Interest Collected, Not Earned................................................................................................
12,309.57
Deposits ............. ........ ............. ....................................................................................................... 27,674,681.38

Dividend

328.810.593.78

OFFICERS
CARL

L. F R E D R I C K S E N
President

M A R K A. W I L S O N
V ic e President

W IL L IA M
G. N E L S O N
V ic e President

W IL L IA M
C. S C H E N K
C L IF F O R D L. A D A M S
A sst. V . Pres, and Cashier
A sst. V ice President
J A M E S L. S M I T H
A sst. Cashier and Auditor

T

L
A /

T / O

N

t o c k

A L

N ort hw es te rn Banker, July,

1947

B

a

n

Cl T Y , IO W A

M ere

o


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

W . S M IT H
Cashier

r

O F ' SI O U X
m e

J O H N S. H A V E R
A sst. Cashier

M E

S

i v e
a

K IN L E Y
Asst.

f

f

k

'

. d . i .c .

t/ te

" Z / é t A j/ s

Dan Marsh, David S. Megarry and Fred
Schilplin.
Robert P. Howe has assumed the
position of executive vice president of
the bank. Mr. Howe is the former
president of the Murray County State
Bank of Slayton.
This reorganization follows the re­
cent purchase by the Northwest Bancorporation of the majority stock in
Guaranty State bank.

Directors of Investors Mutual, Inc.,
Minneapolis, Minnesota, open-end in­
vestment company, have declared a
quarterly dividend of 12 cents a share,
it was announced by E. E. Crabb, chair­
man and president. The current dis­
tribution, derived exclusively from in­
terest and dividend income, is payable
July 21, 1947, to shareholders of rec­
ord as of June 20, 1947.
As a matter of company policy, no
dividend distribution from profits on
the sale of portfolio securities will be
made until the final quarter of the
fiscal year, Crabb said.

Just An In-Between
Visitor: “ How old are you, Bobby?"
Bobby: “ I’m just at that awkward
age.”
Visitor: “ Really? And what do you
consider the awkward age?”
Bobby: “Well, I’m too old to cry and
too young to swear.”

59
S io u x F u tís N e w s

S o n ili Ila k o la

NEWS
A. E. DAHL
President
Rapid City

Open Branch Office
The Dakota State Bank of Milbank,
South Dakota, opened a branch “A ”
office in Big Stone City under the man­
agement of Paul Trapp, Jr., the first of
this month.
Approval of the charter from the
State Banking Department and the
FDIC were both given some time ago
and capital of the parent bank has
been raised from $25,000 to $75,000.
Officers of the Dakota State Bank
are: E. G. Stengel, chairman of the
board; E. F. Phillippi, president; E. F.
Nixon, vice president and cashier, and
M. E. Berry, assistant cashier.

Four Banks Join Á.B.A.
With the admission of four South
Dakota banks into A.B.A. membership
last month, that state became one of
the 20 now holding 100 per cent mem­
bership in the American Bankers Asso­
ciation.
Those joining were First State Bank,
Buffalo; Farmers State Bank, Irene;
Farmers State Bank, Tabor, and First
National Bank, White.
Max Stieg, chairman of the A.B.A.
organization committee, and cashier of
the Dairyman’s State Bank, Clintonville, Wisconsin, praised the work of
Tom Harkison, A.B.A. vice president
for South Dakota, for bringing mem­
bership up to the 100 per cent mark.
Mr. Harkison is president of the Na­
tional Bank of South Dakota.

On Jaycee Board
Two Sioux City bank employes were
named to the board of directors of the
Junior Chamber of Commerce in that
city last month. They are Ross E.
Hunt, assistant cashier, National Bank
of South Dakota, and Charles J. Ben­
nett, bookkeeper, Northwest Security
National Bank.

GEORGE M. STARRING
Secretary
Huron

nine years he has been with the Bank
of Lemmon, and for eight years prior
to that he was at Hettinger, North
Dakota.

Martin L. Thompson
Martin L. Thompson, 67, prominent
Vermillion, South Dakota, civic leader
and former Sioux City and Vermillion
banker, died unexpectedly last month
in Nephi, Utah, while en route to Ver­
million.

Has 40th Anniversary
W. H. Frei, president of the Com­
mercial State Bank, Wagner, South
Dakota, marked his 40th anniversary
with the institution last month. Com­
ing from Reinbeck, Iowa, after his
college graduation he became a book­
keeper in the bank.
Deposits have grown from $200,000
in 1907 to $3,500,000 in 1947, with 1,700
individual accounts at the bank.
In addition to bank duties, Mr. Frei
has served on the state banking com­
mission, the local board of education,
the state Boy Scout Council, the
Methodist Church board, the Rotary
Club and the Masonic Lodge.

Increase Surplus
Directors of the Security Bank and
Trust Company, Madison, South Da­
kota, have increased the surplus ac­
count of the bank to $100,000.
Capital of the bank remains $50,000,
while the surplus is now $100,000 as
compared to $50,000 two years ago.
W. M. Willy, president of the bank,
points out that during the past three
years the capital position of the bank
has been improved by more than $100,000, including additions to both ad­
mitted and unadmitted bank assets.

Manages Kimball Bank

Moves to Wyoming

H. O. Ekeland began work last
month as manager of the Bank of
Kimball, South Dakota. He replaces
John Will, who resigned some time
ago to accept another bank position,
Mr. Ekeland has been in the banking
business since 1919. During the past

Maxwell Bird, who for the last two
years has held the position as cashier
in the Bank of Union County in Elk
Point, South Dakota, has accepted the
appointment as vice president and
cashier of the Lusk State Bank at
Lusk, Wyoming.


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

T HE Ninth Federal Reserve District
reported that South Dakota bank
debits for the year were 31 per cent
higher than those for 1946, totaling
$830,611,000.
Representing checks against deposi­
tors’ accounts for the most part, debits
also climbed 31 per cent during May
of this year over May, 1946. They
were placed at $155,779,000.
Percentage increases shown for May
in the 17 cities and towns included in
the monthly survey were: Aberdeen,
28; Belle Fourche, 31; Brookings, 23;
Chamberlain, 73; Deadwood, 18; Dell
Rapids, 22; Huron, 48; Madison, 6;
Milbank, 7; Mitchell, 45; Mobridge, 37;
Pierre, 51; Rapid City, 42; Sioux Falls,
30; Watertown, 24, and Yankton, 18.
Lead recorded a 7 per cent decrease.
Burke Von Wald, formerly of the
Madison branch of the Northwest Se­
curity National Bank, has become co­
owner of the Glenwood (Minnesota),
Herald, a weekly nawspaper. He is a
World War II veteran.
J. H. McMillan, until recently of
Roundup, Minnesota, has become as­
sistant manager of the Northwest Se­
curity National Bank at Madison. He
is assisting John Will, newly appointed
manager of the institution. He is the
son of C. H. McMillan, who is with
the examining department of the
Northwest Bancorporation in Minne­
apolis.

C. F. Falck, assistant cashier in the
Northwest Security National Bank in
Sioux Falls, was installed as treasurer
of the Sioux Falls Cooperative Club.
C. A. Christopherson, chairman of
the board of directors of the Union
Savings Bank, Sioux Falls, was speak­
er for Flag Day ceremonies presented
by the Sioux Falls Elks Club.
The Lewis System of armored car
service for banks and customers has
been established in Sioux Falls.
John N. Thomson, Centerville bank­
er, chairman of the American Bankers
Association subcommitttee on agricul­
tural credit, offered a plan for reducing
federal indebtedness by $615,000,000
when testifying before the House of
Representatives agricultural commit­
tee in Washington. His plan would in­
volve liquidation of production credit
associations, liquidate banks for co­
operatives and transfer their outstand­
ing loans to federal intermediate credit
banks, and cancel the revolving fund
in which federal land banks have paid
or soon will pay the sum of $314,000,000.
N o r t h w es t e r n Banker, July,

19 4 7

60

South Dakota News
Grangaard, vice president, First Na­

SOUTH DAKOTA
CONVENTION
(Continued from page 28)

Other speakers on the program in­
cluded John McCann, staff member of
Banking, who reviewed bank remodel­
ing under way in the nation’s banks,
and Alvin J. Vogel, secretary of the
research committee of the National
Association of Bank Auditors and
Comptrollers, who spoke on “New
Ideas in Practical Bank Operations,”
accompanying his talk with display
charts that have proven efficient and
time-saving.
The convention closed with a ban­
quet, at which tribute was paid M. O.

tional Bank, Mineapolis, for his 25
years’ consecutive service at South
Dakota Association conventions. N. J.
Thomson, president, Farmers & Mer­
chants B a n k , Platte, representing
many South Dakota banker friends of
Mr. Grangaard, told the audience of
the many services rendered by corre­
spondent city banks. He then pre­
sented Mr. Grangaard with a wrist
watch as a token from his many
friends.
Arthur H. Brayton, secretary, Des
Moines Convention Bureau, delivered
the banquet address. His subject was,
“ Telling the World—Effectively.”

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

N O R T H W E S T SECUR ITY
N A T I O N A L BANK

It was voted to accept the offer of
Aberdeen as host city to the 1948 con­
vention.—The End.

Decrease
For the first time in many months,
there is a marked decrease in con­
sumer purchasing power, it is revealed
in a recent survey of “real income”
made by Investors Syndicate.
Although the income of the average
family today is $1.18 for every dollar
earned a year ago, prices have gone
up to $1.23 for every dollar in April,
1946. This reduces the “real income”
index to 96 cents. “ Real income” is
the relationship of income to living
costs.
Although there have been fluctua­
tions in “real income” at times during
the past six years, this sharp break
from the “real income” level of $1.02
a month earlier and a level of $1.06
four months ago indicates a major

PURCHASING POWER

of S i oux Fal l s, South Dakot a
South Dakotas Leading Bank
JUNE 3 0 , 1947
RESO U RCES
Cash on Hand, in Federal Reserve Bank, and
Due from Banks and B ankers...............................$ 9,968,432.06
U. S. Government O bligations................................... 23,399,503.67
866,752.41
State and Municipal B on d s.........................................
Other Bonds and Securities.......................................
1,034,915.83
Stock in Federal Reserve Bank in M inneapolis...............................
Overdrafts ...................................................................................................
Loans and D iscou n ts.................................................................................
Banking Houses .........................................................................................

$35,269,603.97
42,000.00
2,767.28
7,684,134.68
255,000.00

Includes Banking Houses at Sioux Falls, Brookings, Chamberlain, Dell
Rapids, Gregory, Huron and Madison, all clear of encumbrance.

Interest Earned but Not C ollected......................................................
TOTAL

138,945.20

................................................................................................$43,392,451.13

L IA B IL IT IE S
Caoital Stock— Com mon ........................................... $
Surplus ............................................................................
Undivided Profits and General R eserves.................

500,000.00
900,000.00
446,874.73

Reserve for Interest, Taxes, and Other E xpen ses...........................
Interest Collected but N ot E arn ed........................................................
D eposits:
Tim e .......................................................................... $ 6.921.107.20
Demand .................................................................... 33,780.755.10
584.385.22
U. S. W a r L o a n ......................................................

$ 1,846,874.73
233,294.86
26,034.02

$41,286,247.52
TOTAL

................................................................................................$43,392,451.13
BRANCHES AT

INVESTORS

SYNDICATE,

M INNEAPOLIS

falling off in purchasing power, In­
vestors Syndicate said.
All types of income and all phases
of the price structure have increased
over a year ago, the survey shows.
Wages are up to $1.22 for each $1 a
year ago, salaries are up to $1.20, in­
vestment income to $1.07 and other
income—principally farmers’—to $1.14.
The price of food is now $1.33 for each
$1 a year ago, shelter is up to $1.03,
clothing to $1.19, and miscellaneous
costs to $1.35.
This break in purchasing power,
Investors Syndicate said, seems to in­
dicate that advancing prices are de­
creasing the ability of the consumer
to buy, and threaten to affect the in­
dustrial index soon.

RROOKTNGS. C H A M B E R LA IN . D E L L R A P ID S.
GR E G O R Y, HURON , M A D ISO N
Affiliated with N orthw est Bancorporation
M em ber Federal Deposit Insurance Corporation

Northwestern

Banker, July,


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Federal Reserve Bank of St. Louis

1947

Oil Right With Him
He loved the girl so much that he
worshipped the very ground her father
discovered oil on.

61

\ « r lli

D a k o ta

N EW S
F. A. FOLEY
President
Rolla

Board Approves Amendments
North Dakota State Bank Examiner
J. A. Graham reports that the applica­
tion of the Farmers State Bank, Maddock, North Dakota, for permission to
amend its articles of incorporation to
provide for increase of capital stock
from $25,000 to $50,000 was approved
by the state banking board last month.
Also passed by the board was the
application of the Merchants Bank of
Rugby for renewal of its corporate
existence for a period of 25 years from
August 4, 1947.

Neshit Heads Clearinghouse
Gordon H. Nesbit, president of the
First National Bank and Trust Com­
pany, Fargo, North Dakota, was named
president of the Fargo Clearing House
Association, to succeed Earl L. Shaw,
president of the Fargo National Bank.

Harold F. King
Harold F. King of Park River, North
Dakota, rent director of the Grand
Forks area and former bank cashier
at Derrick, died last month in a Grand
Forks hospital after being in poor
health about a year.
Mr. King was graduated from the
University of North Dakota law school
in 1917. After graduation he moved to
Derrick, North Dakota, where he was
cashier of the King State Bank. In
1921 he moved to Park River and prac­
ticed law there until 1942. In that
year he moved to Fargo where he was
legal advisor for the OPA office. He
became head of the rent control office
there less than a year ago. At the time
of his death Mr. King was president
of the King Land and Investment Com­
pany of Park River.

Cashier at Rhame
David Carlson has been appointed
cashier of the Bank of Rhame, North
Dakota, which has been sold recently
to South Dakota residents. Mr. Carl­
son has been assistant to M. Hestekin
who is resigning the cashier ship.

G. E. Fulkerson
G. E. Fulkerson, 57, mayor of Plentywood, Montana, since 1939, died after
suffering a paralytic stroke. He for­

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Federal Reserve Bank of St. Louis

C. C. WATTAM
Secretary
Fargo

merly was associated with the Ameri­
can State Bank of Williston, North
Dakota.

Becomes Cashier
Assuming duties in the Foster Coun­
ty State Bank, Carrington, North Da­
kota, recently was Mark Atwood, for­
merly of Huron and Alpena, South
Dakota. He succeeds Guy Cook as
cashier, Mr. Cook having been ad­
vanced to the office of vice president.
A native of South Dakota, Mr. At­
wood was farm superintendent for
the Travelers Insurance Company at
Huron, South Dakota, from 1935 to
1943. From 1943 to 1946 he was cash­
ier of the Bank of Alpena. In August
last year he became North Dakota
state agent for the Queen City Fire
Insurance Company. He had consid­
erable experience in mortgage-loan
work while in the employ of the in­
surance companies.

NORTH DAKOTA
CONVENTION
(Continued from page 24)

kota bankers called for more govern­
ment economy, both national and
state; voiced opposition to subsidized
federal credit; urged banker coopera­
tion in the “Bond-a-Month” plan; com­
mended the FDIC on its proposal that
original capital be returned to the
Treasury and assessments be elimi­
nated when surplus reaches one billion
dollars; and recommended that North
Dakota bankers make full use of pub­
lic relations programs as supplied by
the American Bankers Association.—
The End.

MsSk

Production

A rising per capita domestic con­
sumption of milk and milk products
and an increase in exports during and
after the recent war have been of par­
ticular importance to the north central
states, according to an article in the
June issue of Business Comment, pub­
lished by The Northern Trust Com­
pany, Chicago, Illinois.
Entitled “Dairying in the Midwest,”
the article states that the dairy indus­
try, while essentially local in most
sections of the U. S., has assumed sig­

nificant proportions in the north cen­
tral states as a source of supply for
other sections of the country. In 1945
this area produced over 30 billion
pounds of milk in excess of its esti­
mated consumption. During the same
year the Atlantic states had a theoreti­
cal milk deficit of more than 20 billion
pounds.
Cash receipts from farm marketings
are extremely important to the econ­
omy of the north central states, and
in that area 16 cents of every dollar
of cash farm income in 1945 were de­
rived from the sale of dairy products,
the article observes. As an example
of the importance of dairy manufac­
tures as a source of employment and
income in this area, the bank points
to Wisconsin where almost 4 per cent
of the wage earners in manufacturing
indutries in 1939 were engaged in the
production of dairy products.

Crocker First National
The June 30, 1947, statement of
Crocker First National Bank, San
Francisco, reveals that the bank had a
profitable year. After provision for
four quarterly dividends totaling $840,000, and a transfer to surplus of $1,000,000 on December 31, 1946, undivided
profits were $3,618,467, a gain of $141,
718 over the $3,476,749 reported on June
30, 1946.
Deposits declined $15,447,150 to $303,650,797, caused by a decrease in gov­
ernment deposits of $43,782,851.
Capital of the bank remains un­
changed at $6,000,000 and the surplus
account stands at $10,000,000 compared
with $9,000,000 a year ago. Total re­
sources as of June 30, 1947, amounted
to $325,435,425 as against $340,296,292 a
year ago.

Retires
John W. Brown, of Winnetka, Illi­
nois, secretary and manager of the
National Safe Deposit Company, re­
tired on pension recently.
Mr. Brown entered the employ of
The First National Bank of Chicago
in 1921 in the bond department. In
1925 he became assistant secretary and
assistant manager of the National
Safe Deposit Company and secretary
and manager in 1929. At the time Mr.
Brown became associated with the
Safe Deposit Company there were ap­
proximately 18,000 boxes. Now, at the
time of Mr. Brown’s retirement after
his 18 years of management, there are
over 50,000 boxes—the largest number
of any vault in the country.
Mr. Brown was president of the
Illinois Safe Deposit Association in
1935-36; vice president in 1946-47, and
has been on the executive committee
of that association since 1929.
Northwestern

Banker, July,

19 4 7

62

F O R 91 Y E A R S
SO U N D R A N K IN G S ER V IC E

★

Complete

Correspondent Facilities

U N IT E D ' S T A T E S
al f t A N K of Omaha
K

a

i i

o

k

MEMBER FEDERAI DEPOSIT INSURANCE CORPORATION

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Banker, July,


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Federal Reserve Bank of St. Louis

1947

63

» b r a ü k a

XE W S
GIBSON
P re sid en t
B n

JSL ttU ^ B È jÈ

G ib b o n

CARL G. SWANSON
Secretary
Omaha

Until H ankers € Unir nt D on n e

M

ORE than 100 Nebraska bankers
were attending the first annual
Nebraska Bankers Clinic at Doane Col­
lege, Crete, Nebraska, as this issue of
the N o r t h w e s t e r n B a n k e r went to
press. This three-day school is the
culmination of two years of research
into similar projects sponsored by
other state associations.
Edward Huwaldt, executive vice
president, Commercial National Bank,
Grand Island, is chairman of the
hankers clinic committee and is ably
assisted by Vice Chairman J. R. Ken­
ner, president, Thayer County Bank,
Hebron, in addition to four other com­
mittee members. They are: William
N. Mitten, president, Stephens Nation­
al, Fremont; J. V. Johnson, president,
Johnson County Bank, Tecumseh; H.
L. Gerhart, president, First National,
Newman Grove; C. A. Phillips, presi­
dent, Cambridge State Bank, Cam­
bridge, and E. M. Knight, vice presi­
dent, Alliance National.
To facilitate discussions among bank­
ers having more or less the same inter­
ests and problems, size groups were
formed with group leaders and secre­
taries as follows:
Group One—Deposits under $1,000,000. Leader, J. E. Conklin, president,
Hubbell Bank, Hubbell; secretary,
Ivan W. Hedge, cashier, Filley Bank.
Group Two — Deposits $1,000,000 to
$2,500,000. Leader, George A. Wright,
president, Bank of Elgin; secretary,
Chas. Novak, president, Bank of Brainard.
Group Three—Deposits $2,500,000 to
$5,000,000. Leader, J. S .VanAuken,
vice president, Lexington State Bank;
secretary, P. E. Schmeling, president,
The Security National Bank, Superior.
Group Four—Deposits $5,000,000 to
$7,500,000. Leader, E. M. Knight, vice
president, Alliance National Bank; sec­
retary, E. C. Austin, executive vice
president, The Beatrice National Bank.
Group Five—Deposits over $7,500,000. Leader, Glenn Yaussi, vice presi­
dent, National Bank of Commerce,
Lincoln; secretary, A. L. Vickery, as­
sistant vice president, The United
States National Bank, Omaha.

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Federal Reserve Bank of St. Louis

A complete report on results of this
school will be presented in the August
issue of the N o r t h w e s t e r n B a n k e r .

County Bankers Picnic
Washington, Burt, Sarpy and Doug­
las county bankers held their tradi­
tional meeting at Valley, Nebraska,
last month, with 55 members present
to enjoy a deliciously prepared homestyle dinner which featured fried
chicken and strawberries. Guest speak­
er was Oliver P. Cordill, vice president,
Federal Reserve Bank of Oklahoma
City.

Marie S. Cooper
Marie Schaupp Cooper, 84, of Wal­
lace, Nebraska, died at a Sutherland
hospital last month. She was the wife
of Charles L. Cooper, president of the
Farmers State Bank in Wallace.

Returns to Bank
Mrs. Leo Bartholomew resumed her
duties as assistant cashier at the Amer­
ican National Bank, Sidney, Nebraska,
last month after an absence of three
months due to illness.

Thomas N. Burke
Thomas N. Burke, 62, cashier, Graf­
ton State Bank, Grafton, Nebraska,
died in Lincoln last month. Burial
took place in Grafton.
Mr. Burke is survived by his wife,
five daughters, one son and five sisters.

Heads Nebraska Masons
Edward Huwaldt, executive vice
president, Commercial National Bank,
Grand Island, Nebraska, has been
elected Grand Master of the Nebraska
Masonic Lodge. The election took
place in Omaha last month.

more time to private interests. He
will continue as chairman of the bank’s
board of directors.
Interest in the bank has been pur­
chased from Mr. Frentzel and Chris
Jensen, vice president, by A. J. Hallas,
John McGarrough and W. M. Costello
of Omaha, who are at present officers
and stockholders in other Nebraska
banks or engaged in similar lines of
business.
According to the announcement, Mr.
Costello, who has been assistant vice
president of the Stock Yards National
Bank at Omaha, succeeds Mr. Frentzel
as president and Mr. Hallas replaces
Mr. Jensen as vice president. Otto F.
Paege remains as cashier and member
of the board of directors. Other mem­
bers of the board are William Daberkow and W. J. Barelmann. Percy C.
Fuhlrodt retains his present position
as assistant cashier.

Promoted in Lincoln
Myron Weil and Herman Brockmeier
have been promoted to assistant cash­
iers of the National Bank of Com­
merce, Lincoln, according to an an­
nouncement from President Byron
Dunn.
Myron Weil is a grandson of Morris
Weil, founder of the bank. Mr. Brock­
meier has been associated with the
bank for 10 years. Both saw army

Wins $100 Scholarship
Ernest A. Yeck, Jr., of Cordova, Ne­
braska, was awarded a $100 scholarship
from Jones National Bank of Seward.
Each year this bank awards a $100
scholarship to the outstanding Univer­
sity of Nebraska student of Seward
county.

Purchase Carleton Bank
R. B. Walker and Ed Fujan have
purchased the interests of Melvin Jen­
nings in the Citizens State Bank at
Carleton, Nebraska. Mr. Jennings, who
has been president of the Carleton
bank, has moved to Western. Mr.
Walker has been cashier of the Citi­
zens State and will now take over the
duties of president.
Mr. Fujan has been assistant cashier
in the Bank of Prague. He will suc­
ceed Mr. Walker to the cashier’s posi­
tion.

Frank Krejci

Frank Krejci, 79, president of the
Schuyler State Bank, Schuyler, Ne­
braska, since 1923, died last month in
Sells Wisner Interests
a Columbus hospital. Burial was in
O.
A. Frentzel announced his resig­ Schuyler cemetery.
Mr. Krejci was born in 1867 in Aus­
nation last month as president of the
Citizens National Bank, Wisner, Ne­ tria-Hungary, moving to Nebraska
braska. Mr. Frentzel, who has been eight years later with his parents. He
associated with the bank the last 29 is survived by his wife, two sons and
years, said he is resigning to devote a daughter.
Northwestern

Banker, July,

19 4 7

Nebraska News

64

at a Council Bluffs hospital. A daugh­
ter, Mrs. George A. Peak, of Des
Moines also survives.
Mrs. Saunders was a charter mem­
ber of the Visiting Nurse Association
of Council Bluffs and the Council
Bluffs Woman’s Club. During World
War I she organized the Ninth Iowa
District for the United States Food
Administration.

ENRY C. KARPF, president of the

H

Live Stock National Bank of Oma­
ha, was one of those interviewed re­
cently who agreed with the statement
of Robert Storz, retiring Omaha Cham­
ber of Commerce president, who said
that certain “selfish interests” are hold­
ing back Omaha’s progress.
Mr. Karpf said, “ I agree with most
of Mr. Storz’s statements. I’m not
familiar with the minority groups he
speaks of, but I’ve heard a lot about
them in the years I’ve been here. And
I’m inclined to think he’s right.”
The

Kirkpatrick - Pettis

Company,

Omaha investment banking firm, has
increased its capitalization from $150000 to $500,000. Amended articles were
filed with the secretary of state re­
cently.

Trust departments of banks should
not take over the duties of lawyers,
Daniel J. Monen, vice president of the
Omaha National Bank, told the School
of Banking at the University of Wis­
consin recently. He has been a sum­
mer member of the banking school
faculty there.
He declared the drafting of wills and
the determination of all legal ques­
tions, procedure and court filings, are
the jobs of lawyers. The banking
school closed June 14th at Madison,
Wisconsin.
Mrs. Flora D. Saunders, 81, widow
of Charles G. Saunders, widely-known
Council Bluffs attorney and state sena­
tor, and mother of Charles D. Saun­
ders, vice president of the First Na­
tional Bank of Omaha, died last month

Grain drafts sent here will
receive prompt attention from
a bank long identified with
grain and milling in this mill­
ing center.

W. B. Millard, Jr., vice president of
the Omaha National Bank, has been
elected chairman of the Creighton Uni­
versity Board of Regents. He suc­
ceeds Francis P. Matthews, Omaha at­
torney, who remained, however, on
the board.
Dale Clark, president of the Omaha
National Bank, is one of the incorpo­
rators of a new non-profit farm re­
search organization, Agricultural Re­
search Foundation, Inc., for which
articles of incorporation were filed at
Lincoln, Nebraska, recently.
Its purpose is to set up a laboratory
to uncover more and better industrial
uses of farm products. The incorpora­
tors expected to establish a minimum
capital fund of $500,000, all to be raised
by donations. The first donation, $40,000, came from the Farm Crops Proc­
essing Corporation.
Other incorporators, all Omahans.
include J. L. Welsh, grain man; Robert
H. Storz, brewer and past president
of the Omaha Chamber of Commerce;
Max A. Miller, former cereal concern
executive, and W. C. Fraser, attorney.
Ray R. Ridge, senior vice president
of the Omaha National Bank, is the
new president of the Omaha Chamber
of Commerce. He succeeds Robert H.
Storz. At the annual luncheon, Mr.
Ridge, who has been chairman of the
Chamber’s executive committee, out­
lined the organization’s program of the
past year. Mr. Ridge, 53, is the third
Omaha National Bank executive who
has been president of the Omaha
Chamber. He came to Omaha in 1929
from St. Joseph, Missouri, and served
in World War I.
Edward N. Van Horne, president of
the Federal Land Bank of Omaha, was
elected treasurer of the Chamber. New
directors for three years include Ar­
thur I . Coad, president of the Packers
National Bank, and Kenneth G. Har­
vey, president of the Douglas County
Bank of Omaha. Retiring directors in­
clude S. R. Kirkpatrick, Omaha invest­
ment banker.
j

The First National Hank
St. Joseph, Missouri
M em ber Federal Deposit Insurance Corporation

Northwestern

Banker, July,


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Federal Reserve Bank of St. Louis

19 4 7

Commenting on the new community
property law in Nebraska, which per­
mits husbands and wives to divide
their income equally for Federal in­
come tax purposes, Daniel J. Monen,

Nebraska News

65

vice president and trust officer of the
Omaha National Bank said:
“ Mr. and Mrs. Jones of Nebraska
now will pay no more Federal income
taxes than Mr. and Mrs. Jones of Cali­
fornia on identical net incomes. That
is as it should be. As more states fol­
low Nebraska’s recent action, the de­
mand for Federal legislation to permit
husbands and wives of all states to
split the family income on two sep­
arate returns, will increase. The effect
of the new state law on existing prop­
erty arrangements should have the
attention of all Nebraskans.”
Eugene C. Dinsmore, Omaha invest­
ment hanker, has succeeded Ellsworth
Moser, executive vice president of the
United States National Bank, as a
member of the Omaha Improvement
Commission. Mr. Dinsmore’s appoint­
ment was made by Mayor Leeman
and approved by the city council. Mr.
Moser resigned from the commission
because of health reasons.

Omaha bank clearings so far in 1947
are 26 per cent greater than for the
same period last year. Bank debits
have increased 25 per cent.
April clearings showed an increase
of 28.4 per cent and debits 28.8 per
cent.
For the second consecutive time,
Omaha weekly figures on clearings for
the five-day period ended June 5th led
all of 24 major cities whose reports
were listed by Dun & Bradstreet. The
weekly gain was 33.2 per cent over
1946, for a total clearings figure of
$102,787,000. The total for the same
week last year was $77,189,000.
Bankers said that high agricultural
prices and practically no unemploy­
ment are major factors.
The livestock movement to the Oma­
ha market have been extremely heavy
since January 1st.
The Omaha weekly clearings in­
crease of 33.2 per cent compare with


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Federal Reserve Bank of St. Louis

*7o

B

e te te

U

te

lA

J e lt

. ..

To better serve the West, the Pony Express sent swift riders galloping across
the plains. Today, the Inter-State follow s the same tradition of swift and satis­
factory service by making every modern banking facility available to its
correspondents.
Condensed Statement
At the Close of Business June 30, 1947

RESOURCES
Cash and Due from Banks------------------------------------- $20,455,397.05
U. S. G overnment Securities---------------------------- ------ 21,178,838.03
Other Securities __________________________________
4,248,120.77

$45,882,355.8a

Loans and Discounts ______________________________________________ 16,371,790.63
Stock in Federal Reserve Bank-------------------------------------------------------75,000.00
$62,329,146.48

LIABILITIES
Capital ______________________________________________ $1,250,000.00
Surplus ______________________________________________ 1,250,000.00
U ndivided Profits __________________________________ 1,319,850.65
Reserved for Contingencies_______________________________________

400,000.00

Reserved for Taxes, etc____________________________________________

Deposits

$4,219,850.65

256,846.66

_______________________________________________________ 57,852,449.17
$62,329,146.48

the Inter-State
L IV E S TO C K EXCH AN GE BLDG.

National Bank
16TH.

AND

GENESEE

STS.

f i '/ y
M EM BER FE D ER AL DEPOSIT INSURANCE C O R P O R A T IO N

Northwestern

Banker, July,

1947

66

Nebraska News

an average 5.1 per cent gain for the
other cities charted.
Mr. and Mrs. T. 15. Davis left June
15th for their summer cottage at the
Minnesouri Club on Lake Miltona,
near Alexandria, Minnesota. They ex­
pect to return early in September.
Their son and daughter-in-law, Mr. and
Mrs. John Davis, and their daughter
and son-in-law, Mr. and Mrs. John
Lauritzen, usually visit them at the
lake during the summer.
Arthur D. Anderson, cashier of the
United States National Bank of Oma­
ha, attended the graduate school of

banking sponsored by the American
Bankers Association at Brunswick,
New Jersey. Sessions were held at
Rutgers University.
The school, founded in 1935, pro­
vides advanced study in all phases of
banking. Forty-three states were rep­
resented at this year’s session.

Married in Omaha
Miss Lois Jean Denton, Fullerton,
Nebraska, and Howard M. Johnson,
Omaha, were married in Omaha last
month.
Mrs. Johnson was secretary to Carl
Swanson, secretary of the Nebraska
Bankers Association, before her mar-

riage. Howard Johnson is the son of
Mrs. Alvin E. Johnson and the late
Mr. Johnson, who was president of the
Live Stock National Bank in Omaha.

Join State Association
Ten more banks recently became
members of the Nebraska Bankers As­
sociation, according to a bulletin re­
leased from the office of Carl Swanson,
secretary. Latest to join the organi­
zation are: Ashton State Bank, Ash­
ton; Citizens State Bank, Carleton;
Center State Bank, Center; Farmers
State Bank, Humphrey; City National
Bank, Greeley; First National Bank,
Johnson; Mason State Bank, Mason
City; First National Bank, Weeping
Water; Nebraska State Bank, Western,
and Springfield State Bank, Springfield.

Meyer Promoted
Vern P. Meyer, formerly assistant
cashier, was advanced to the office of
assistant vice president of the First
National Bank of St. Joseph, Missouri,
at a recent meeting of the board of
directors.
Walter Canter, formerly assistant
cashier, was elected cashier, and Gra­
ham Porter was named assistant cash­
ier.

OLDWAY-Slow,Wasteful,Tedious
. . . when snow and ice kept people indoors, and when

...fo r

business moved no faster than a crop of wheat could grow.

QUICKACCURATE-

Commerce SPEED IS IM P O R T A N T

H a n d lin g o f l o o s e C o in s

. . . important to you who gain in profit when your collec­
tion items are speeded through with a minimum of delay.

The D O W N E Y
CHANGE TRAY
THE MODERN WAY

The Commerce maintains three 8-hour shifts to provide
24-HOUR TRANSIT SERVICE.
their way.

Speed your transit items on

Take advantage of this unigue service.

(om m ercejrtist (om p a n y9
G capital tf-u+uLi C acead 2 .Í M ilLa+t ub altari-

H IS aluminum Tray holds 10
coins each of pennies, nickels,
dimes, quarters and halves in each
of 68 staggered pockets for quick
handling. Raised black figures on
border mark pockets. Tellercan make
change with speed. Size of Tray:
12ys in. by 9 in. May be placed on
counter, mounted on pedestal to
save space or on short legs for
nesting and storage in vault.

T

WRITE TODAY, t o DEPT.

KANSAS CITY'S LA R G EST BANK
Established 18fo5

(n sEu r a n c e EcDor * o r a d o i n

KANSAS CITY, MISSOURI

Northwestern

B a n k e r . J u l y , 19 4 7


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Federal Reserve Bank of St. Louis

G

*7Âe C . L. D O W N E Y C om p a q
HANNIBAL, MISSOURI
IdJanlcLi Jla su fO it M j/U . o f C o in 'k/'iafxp& U

Nebraska News
In the First Trust Company, Loyd
A. Walker was elected treasurer, ad­
vancing from the office of assistant
secretary, and Leocadia McGinnis was
named assistant secretary.
At the First St. Joseph Stock Yards
Bank, Merritt E. Blanchard was ad­
vanced from assistant cashier to the
office of cashier, and Harry H. Broadhead, Jr., was elected assistant cashier.

Employes Honored
Officers and employes of the Crocker
First National Bank of San Francisco
recently gave a testimonial dinner for
five employes of the bank who retired
on June 30. The five employes who
served the bank for an aggregate of
155 years are: V. M. Alvord, assistant
cashier, who joined the bank in 1905;
Arthur Brest, captain of the guard,
who has been associated with the bank
since 1924; F. M. Johnson, security
custodian, 1911; C. V. Newell, assistant
trust officer, 1905, and Adeline Mc­
Laughlin, building maintenance em­
ploye, who joined the bank in 1931.
The five employes of the bank are
retiring under the provisions of a pen­
sion plan inaugurated by the bank in
1933.

R E A C H . .
For an effective correspondent
service that reaches into local,
national, or international mar­
k e t s . . . fo r the usual or the
unusual. . . banks and bankers
are invited to call o n . . .

The C O N TIN E N T A L
B A N K

&

T R U

S T

C O M P A

o f N EW YORK
3 0 Broad Street,New York 15,N .Y.
M EM BER FEDERAL DEPO SIT INSURANCE CORPORATION

AMERICAN NATIONAL HANK
ST. JOSEPH, MO.

Í
S T A T E M E N T OF C O N D IT IO N , JU N E 3 0, 1947

RESOURCES

Trust Conferences

Loans _______________________________

$ 4,637,125.61

Dates and places for two of the regu­
lar annual trust conferences held each
year by the trust division of the Ameri­
can Bankers Association were an­
nounced by Evans Woollen, Jr., presi­
dent of the division, who is president
of the Fletcher Trust Company, In­
dianapolis, Indiana.
One of these, the Pacific Coast and
Rocky Mountain States Trust Confer­
ence, will be held in San Francisco at
the St. Francis Hotel, October 22-24,
1947, Mr. Woollen states.
The other, the Mid-Continent Trust
Conference for the trust institutions
and trust men in the middle west, will
be held in Chicago, November 6th
and 7th, at the Drake Hotel.
The Associated Trust Companies of
Central California will be host at the
Pacific Coast and Rocky Mountain
States Conference, and the Corporate
Fiduciaries Association of Chicago will
be host at the Mid-Continent Trust
Conference.
Names of committees in charge of
arrangements for the meetings and
program details will be announced as
they are completed.

Municipal B on d s------------------------------

367,101.16

Banking H ouse---------------------------------

92,500.00

Federal Reserve Bank Stock----------------

21,000.00

B A N K S
Confidentially and

Bought and Sold
with becoming dignity

BANK EMPLOYEES PLACED.
42 Years Satisfactory Service

THE CHARLES E. WALTERS CO,
OMAHA.


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

67

United States Obligations-------------- $12,285,301.79
Cash and Siglit Exchange--------------

18,924,553.49

6,639,251.70

$24,042,280.26
LIABILITIES
Capital S tock---------------------------------------------------- $

350,000.00

Surplus and Profits--------------------------------------------

459,035.62

Reserves -----------------------------------------------------------

44,004.25

Deposits:
Banks _________________________ $ 7,942,258.06
Individual -------------------------------- 15,246,982.33

23,189,240.39
$24,042,280.26

OFFICERS
R. R. CALKINS
President

WALTER W. LIMBACK
Cashier

GEO. U. RICHMOND
Vice President

K. L. MORRISON
Asst. Vice President

BEVERLY PITTS
Vice President

E. H. GINZKEY
Assistant Cashier

BENTON M. CALKINS, JR., Assistant Cashier
Member Federal Deposit Insurance Corporation

NEBRASKA

Northwestern

B anke r, July,

194

68

Nebraska News

Plans Expansion
Ernest E. Nelson, manager, Brown
Brothers Harriman & Company, Bos­
ton, and president of the Robert Mor­
ris Associates, announces the employ­
ment of Lawrence T. Knier in the
Central Office in Philadelphia to as­
sist in research activities of the organi­
zation. Mr. Knier will work in the
Central Office under Raymond W. Duning, secretary-treasurer, and will be
largely responsible for the research
activities of the organization, particu­
larly the statement and industry stud­
ies. H. T. Riedeman, vice president
of the Industrial National Bank of

Chicago, is chairman of the research
committee.

Name Changed
At a recent reorganization meeting
of the National Safe Deposit Advisory
Council, at which a majority of the
membership was represented, it was
voted upon and unanimously approved
that, in order to be truly representative
of the type of business and banking
which it serves throughout the coun­
try, the name of the National Safe
Deposit Advisory Council be changed
to The American Safe Deposit Asso­
ciation.

WOUNG CHICK BATTEY, 15-yearOVER SEVENTY-SIX YEARS OF BANKING EXPERIENCE

Statement of Condition

The First National Bank of Lincoln
LINC O LN, N EBRA SKA
(ORGANIZED 1871)

AT THE CLOSE OF BUSINESS JUNE 30, 1947

ASSETS
Cash and Due from Banks......................................................$12,932,504.91
U. S. Government Bonds....................................................... 29,959,170.52
Other Bonds and Securities...................................................
Federal Reserve Bank Stock.................................................

/ old golfing firebrand of Lincoln, has
been crowned city junior champion,
by shooting a blistering 72 final round
to eliminate his opponent. Chick is
the son of Mr. and Mrs. Wheaton Battey. Mr. Battey is vice president of
the Continental National Bank, some
golfer himself.
From the first tee-off until Chick
finished on an easy 8 and 7 in the final
round, the youthful player was a sen­
sation, consistently amazing the large
gallery which followed the play. His
strong play both on the greens and
the fairways featured.
His card for the 72 holes was a
neat 289, one over par for the course.

1,402,199.18
79,500.00

Nebraska banks are adequately pro­
tected up to the amount specified in
a chattel mortgage, against additional
Loans ...........................................................................................
5,764,559.34
loans by a third party, even though
Interest Earned Not Due.......................................................
129,229.73
the additional loan may not bring the
Banking House .........................................................................
337,872.20
combined total loaned against the chat­
tel, within the maximum specified in
Total A s s e t s ............................................................. ..........$50,605,035.88
the bank mortgage. This has been
revealed in an opinion written by the
LIABILITIES
Nebraska attorney general, and now in
the hands of J. F. McLain, state direc­
Capital Stock ...............................................$1,500,000.00
tor of banking.
Surplus ................................
1,150,000.00
Although only the maximum liabil­
Undivided Profits ..........................
521,795.36
$3,171,795.36
ity of the bank’s mortgage is shown,
“it serves as public notice and puts
Reserves .....................................................................................
182,917.44
anyone interested on the inquiry as to
Discount Unearned ................................................................
41,865.17
the existence of the lien,” the attorney
Deposits .............................
47,208,457.91
general explained.
“ I believe the chattel mortgage,
Total Liabilities ................... ...4........................................$50,605,035.88
when filed, protects the bank as to
further advances actually made, up to
OFFICERS
the maximum provided in the mort­
P. R. EASTERDAY . . . . . Chairm an
gage, as against purchasers or lien
A . C. GLANDT . Vice-Pres. and Cashier
GEORGE W . HOLMES . . . .
President
R. J. BECKER '. . . . . Vice-President
holders whose rights accrue after the
H O W A R D FREEMAN . Exec. Vice-President
BURNHAM YATES
Vice-President
B. O. CAMPBELL'
Vice-President
E. U. GUENZEL
.
Vicè-Presidènt

CLIFFORD Cjj.., W E5TQ N . Asst. V.-President
LYLE F. STCNEMAN . Asst. V.-President
G. H. C R A N E ........................ Asst. Cashier
'R. A . G'ESSNER
. . . . A sst. Cashier

Member Federal Deposit Insurance Corporation

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OMAHA

Northwestern

Banker, July,


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

19 4 7

Nebraska News
mortgage is filed, even though the ad­
vances contemplated are actually made
after such rights were acquired by
purchasers or lien holders,” the opin­
ion declared.
According to Lincoln bankers, chat­
tel mortgages of this sort are generally
made in connection with the handling
of cattle. They explained, too, that
the protection is provided through a
clause in the mortgage forms used.
Phil R. Easterday, chairman of the

First National Bank board of direc­
tors, was one of the principal speakers
last month at a bank management
clinic held on that date in Lawrence,
Kansas. The clinic was sponsored by
the Kansas Bankers Association, the
Kansas State Banking Department,
and the University of Kansas.
Mr. Easterday’s subject was, “Bal­
anced Government Bond Programs for
County Banks.” He has spoken on the
same topic at several meetings of
Nebraska bankers.
Returned from the annual conven­
tion of Rotary International at San
Francisco, Byron Dunn, president of
the National Bank of Commerce, who
represented Lincoln Rotary Club, was
the principal speaker at a luncheon
of the club recently. He explained
what was accomplished by the con­
vention. Howard Hadley, vice presi­
dent of the club, and immediate past
R o t a r y president, introduced the
speaker.
The embezzlement of $2,707, delin­
quent taxes amounting to $16.89, and
$80.64 in salary owing the alleged em­
bezzler up to the time he hied himself
off to parts unknown, have blazed
into a fiery controversy between Lan­
caster county, Nebraska, commission­
ers, on one hand, and the county treas­
urer and county clerk on the other.
The shortage was discovered in the
accounts of a clerk in the county
judge’s office.
Disposition of the $80.64 in salary
due the missing clerk is the imme­
diate cause of the controversy. A
check covering the sum was made out
in favor of the clerk, charged with the
embezzlement, and sent to the treas­
urer with instructions to apply $16.86
to the employes’ delinquent county tax
account. The remainder was ordered
turned over to the county judge to
apply against the missing court funds.
The instructions to the treasurer
were set out in a resolution passed
by the county commissioners. The
treasurer, however, declined to follow
the order and returned the check to
the commissioners. In the same cover
was a letter setting out a belief by
the treasurer that he was without au­
thority to apply any part of the money

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Federal Reserve Bank of St. Louis

to the alleged defaulter’s tax account,
without first having the endorsement
of the missing man.
A member of the board then recom­
mended that separate checks be drawn
in favor of the judge and the treas­
urer. This, in turn, raised another
objection, the county clerk doubting
the legality of the board issuing such
an order.
By this time the controversy was
on full tilt and ended only when the
original check was ordered held up,
pending an investigation. At last re­
port no agreement had been reached.

69

Lincoln bankers are steering clear of
the controversy, not being well enough
acquainted with what the county
board can do in the premises.
Anyway, the delinquent tax-account
has not been paid, and the residue of
the salary due the alleged defaulter
has not been credited to the shortage.

LEGAL QUESTIONS

(Continued from page 21)
ing to use it for an illegal gambling
purpose, and that the plaintiff knew
that fact, if the plaintiff did not other­
wise participate in or further the

STATEMENT OF CONDITION
June 30, 1947
RESOURCES
Loans and Discounts.............$ 6 ,4 3 5 ,5 2 2 .5 5
Overdrafts
..................
291.71
Banking House
...
1 0 5 ,0 0 0 . 0 0
U. S. Bo n d s ............................... 2 5 , 0 1 9 ,0 0 0 .0 0
nthAi* RnnHc
o c nnn nr»
2
7
- •,■
2 5 , 0 0 0 .0 0
Customers Liability for Letter
, ° f Criid't • ..........................
f.OOO.OO
W a r Savings Sta mps .............
1 ,5 00 .0 0
Stock Federal Reserve Bank
3 3, 0 0 0 .0 0
Cash and Sight Exchange. . . 1 2 , 8 4 6 ,1 8 3 .9 0

LIABILITIES
Capital
...$500.000.00
Surplus . . . .
6 00 ,0 0 0. 00
Reserves . . . 5 0 0 ,0 0 0 . 0 0
Un^l , 'd.e<l
la T m a « «
« 1 7 QT 0 7 4 ft«
Profits
. . 1 9 7 ,0 / 4 . 6 8
$ 1 ,7 97 ,0 7 4. 6 8
Reserve for Dividends..........
2 0, 00 0 .0 0
Letters of C re d it .....................
5 ,0 00 .0 0
Deposits $37 ,49 4, 40 7 .1 1
\/Var Loan
Deposits
1 5 4 ,0 1 6 . 3 7
3 7, 64 8 ,4 2 3 .4 8
Due Federal Reserve B a n k . .
5 ,0 0 0 ,0 0 0 .0 0

$ 4 4 .4 7 0 , 4 9 8 .1 6

$ 44 , 4 7 0 , 4 9 8 .1 6

OFFICERS
BYRON DUNN. President
MARSHALL HEWITT, Asst. Vice President
ALBERT A. HELD, Executive Vice President
PAUL BOGOTT, Cashier
ERNEST C. FOLSOM, Vice President
WILLIAM STRATEMAN, Asst. Vice PresiJULIUS WEIL, Vice President
dent
CARL D. GANZ, Vice President and Trust
R. E. MILLER, Asst. Cashier
Officer
TED THOMPSON, Asst. Cashier
GLENN YAUSSI, Vice President and Asst.
MYRON WEIL, Asst. Cashier
Trust Officer
HERMAN BROCKMEIER, Asst, Cashier

NATIONAL BANK of COMMERCE
LINCOLN, NEBRASKA
M em b er F ed era l D e p o sit In su ra n ce C orporation

9 * i J li+ t c o ln

JL HE

—

Continental,

*7 h e

G a n t i+ ie s t t c U

"N e b ra sk a 's

friendly

—

b a n k ,"

cordially invites you to draw upon a n y or all of its
m any

banking

facilities

spondent business.

for

handling

your

corre­

Noted for its prompt, courteous

and efficient service and its staff of w ell-qualified
experts, the Continental National Bank stands read y
and e ager to serve you in Lincoln.

Q

j n t in e n t a l

R

a t io n a l

E>.hk

ofLIN C O LN

M ember Federal Deposit Insurance Corporation

Northwestern

Banker, July,

1947

70

Nebraska News

project. Georgia, Indiana, Mississippi,
Tennessee, and Texas are among the
states in which there are decisions up­
holding this general rule. Missouri,
incidentally, has one decision follow­
ing the rule and one against it.

states, the withdrawal of a partner
from a partnership firm dissolves the
partnership.
It follows that the
agency conferred upon the partner­
ship was, because of its dissolution,
terminated. The Minnesota Supreme
Court so held in a recent analogous
decision.

C ). A bank in Minnesota appointed a
real estate firm as its agent to sell cer­
tain property. The firm consisted of
two men who operated as a partner­
ship. One of the men withdrew from
the partnership and went into another
line of business. Did this action on his
part operate to terminate the agency?

Where a bookmaking establish­
ment at which bets on horse raees
are placed comes into existence is it,
as a general rule, treated as a public
nuisance by the courts so that its
operations may be enjoined or other­
wise stopped?

Yes. In Minnesota, as in many other

CONDENSED STATEMENT
of

City National Bank and Trust Company
18th and Grand Avenue
KANSAS CITY, MISSOURI

At the close of business— June 30, 1947
RESOURCES
Cash and Due from Banks................................................................................................$ 32,476,297.20
Bonds (carried at less than market value):
U. S. Governm ent and U. S. G ov't G u aran teed Bonds....... $30,691,271.37
Federal Land Bank, State and M unicipal Bonds.................. 7,860,671.00
High G rade Corporation Securities.........................................
389,404.20
38,941,346.57
Federal R eserve Bank Stock..............................................................................................
Loans and Discounts............................................................................................................
City Bank Building— U nencum bered (cost over $1,000,000.00)........ ...................
N ew City Bank B uilding...........................................................A ....................................
Other Real Estate (One Property)...................................................................................
Furniture, Fixtures an d Safe Deposit Vault (Cost $100,000).................................
Custom ers' Liability A ccoun t Letters of Credit...........................................................
A ccru ed Interest R e ce iv a b le ..............................................................................................
O verdrafts ...............................................................................................................................
Total

R esources

150,000.00
45,436,587.04
1.00
1,077,067.64
1.00
1.00
189,879.53
263,759.63
8,674.14

.......................................................................................................... $118,543,614.75

LIABILITIES
Capital Stock (Paid In)................................................ $400,000.00
Capital Stock (Earned)................................................. 600,000.00

Yes. Although, of course, the ques­
tion depends to a large extent upon
the terms of the applicable gambling
and nuisance statutes, it has been gen­
erally held that a place away from a
horse race track, where bets are taken
on races, commonly known as a book­
ing establishment, poolroom, turf ex­
change, or “horseroom” , constitutes a
public nuisance.

Q.

Adams, a banker, and five asso­
ciates were partners in a mercantile
establishment. They abandoned the
partnership method of doing business
and conveyed their shares to a trustee,
giving him broad powers to conduct
the business and pay the profits to
them as beneficiaries of the trust. Was
such trust, for Federal Revenue Act
purposes, taxable as a corporation?

Yes. In the case of trusts the test
as to whether the enterprise is taxable
under the Federal Revenue Acts as a
corporation is based upon whether
the trust is a “business trust” or a
“pure or traditional trust” . The latter
are not taxable as corporations but
no such trust was involved here be­
cause the trust was obviously one that
was set-up for business purposes.

Q.

North, a South Dakota banker,
obtained a tax deed to certain real
estate in that state which was void.
As an incident to redeeming the land,
Brockton, the owner, sought to deduct
from the amount due from him to
North a sum equivalent to the value
of North’s use and occupancy during
the period between the date of his
void deed and the date of the redemp­
tion. Could he do so?

$1,000,000.00

Surplus (Earned) ..................................................................................... 4,000,000.00
Individual Profits (Earned).................................................................. 1,006,874.10
Invested Capital ...................................................................................................................$ 6,006,874.10
U nearned Interest ...................................................................................
304,379.31
A ccru ed Interest an d T a xes................................................................
377,633.13
Our Liability A ccoun t of Letters of Credit Issu ed ......................
189,879.53
Deposits:
U. S. G overnm ent D eposits..........................................................$
17,643.75
Other Deposits ............................................................................... 111,647,204.93
111,664,848.68
Total Liabilities ...................... ......................................................................................$118,543,614.75
The a b o v e statement is correct.

Yes. In a recent decision involving
similar facts the South Dakota Su­
preme Court reaffirmed that such is
its position in these matters and stated
the rule there to be that, in an action
to invalidate or cancel a tax deed, the
value of the use and occupancy of
the land by the holder of the invalid
title is deductible from the amount of
reimbursement to which he is entitled.

R. C. KEMPER, President.
OFFICERS
Rufus C rosby Kemper, President
G eorge C. Kopp, Vice President
James S. N eely, V ice President
F. D. Farrell, Vice President
Kearney W orn all, V ice President
J. Milton Freeland, Vice President
D ale R. Ainsworth, V ice President
James F. McPherson, V ice President
L. Earl Stephenson, Vice President
Cyril J. Jedlicka, V ice President
Robert L. G reene, V ice President
Earl W . Deputy, Trust Officer
Richard T. Pendleton, Trust Officer

Louis G Loschke, Cashier
Edw ard F. Lyle, Comptroller
James R. G ayler, Assistant V ice Fissident
John E. Hoffmann, Assistant Vice President
John C. House, Assistant Cashier
Jack Black, Assistant Cashier
John Yonts, Assistant Cashier
Ewart H. Burch, Assistant Cashier
James F. M ack, Assistant Cashier
K. H. Armstrong, Assistant Trust Officer
D ew ey Shillerston, Assistant Trust Officer
Tom Collins, Publicity Director
Bror W . U nge, M an a ger Foreign Department

SPECIAL
Chester L. Brewer, Jr.
Emery F. James, Jr.

REPRESENTATIVES

Jack S. Kitchen
Charles W . Koester

M em b er o f F ed era l D e p o s it Insu rance C orporation

Northwestern

Banker, July,


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

1947

A llen Morrow
Jack L. Nielsen

Q.

Where two parties enter into a
written lease of real estate for a period
of time and specify in the lease agree-

WISH TO PURCHASE an interest in
a sound bank or business carrying with
it a position as executive assistant,
auditor, assistant auditor, accountant,
cashier, office manager or treasurer.
Experienced in general banking, instal­
ment loans, reports, auditing, systems,
accounting and tax service. Write E.C.D.,
c/o Northwestern Banker, 527 7th St.,
Des Moines, Iowa.

Nebraska News
ment that, at the end of that period, it
will be subject to renewal by the ten­
ant at his option at a rental to be
agreed upon by the parties, does such
tenant, under most of the decisions
in which the point has been raised,
have an option to renew the lease
which he can enforce at law?

No. Most of the decisions in which
this problem has been involved adhere
to the view that a renewal covenant,
or an option to renew in a lease, which
leaves the renewal rental to be fixed
by future agreement between the par­
ties is unenforceable because of un­
certainty and indefiniteness. Recent
decisions to this effect have been
handed down in Florida, Tennessee,
and Missouri.

Q.

South, a North Dakota banker,
sought to buy a parcel of land in that
state from West which was part of a
tract occupied by him and his wife as
their homestead. The parties agreed
on terms and, as an incident to effect­
ing the deal, AVest executed and
acknowledged in favor of South a deed
to the property. AATest’s wife, however,
failed to sign and acknowledge the
instrument. \\ras it void?

Yes. In North Dakota a conveyance
of a homestead or any portion thereof
must be executed and acknowledged
by both husband and wife. If both of
them do not do so, as was the case
here, it is void. This is a well estab­
lished rule of law in that state and is
in accordance with both statutory and
case law there.—The End.

California Bank
California Bank’s loans, continuing
the 1946 trend, increased $6,881,124
during the first six months of the year,
according to the June 30th statement
of condition.
Commenting on this increased de­
mand for credit, Frank L. King, presi­

71

dent, said: “ Our loans, now totaling
$88,366,654 as compared with $81,485,530 as of December 31, 1946, reflect the
continued b u sin e ss and industrial
growth of the Los Angeles area.”
Total deposits decreased $11 million
during the period while time deposits
increased $3,692,570.
Undivided profits as of June 30th
were $3,932,456, bringing the capital
structure of the bank to $16,932,456.
Quarterly dividends of 50 cents, an in­
crease from the former dividends of
37 V2 cents, were paid during the period
on the 260,000 shares presently out­
standing.
California Bank’s total resources are
now $451,411,360.

THE NORTHERN
TRUST COMPANY
C H IC A G O

Statement of Condition, June 30, 1947
RESOURCES
Loans and Discounts.......................................................$ 79,603,695.80
LT. S. Government Securities....................................... 274,418,441.86
Other Bonds and Securities.......................................... 105,999,242.11
Federal Reserve Bank Stock.........................................

450,000.00

Bank Premises....................................................................

1,400,000.00

Customers’ Liability, Account Letters of Credit
and Acceptances............................................................

1,225,273.84

Other Resources................................................................

152,970.00

Cash and Due from Banks............................................ 143,606,347.96
TOT A L ................................................................................... $606,855,971.57
LIABILITIES

C T f le

PUBLIC
NATIONAL
Ba n k
ancfTrust l^ompanu
ofJfeufljork37 B road St ., N ew Y ork City
26 Offices
Throughout Greater New York

Capital Stock..................................................................... $

3,000,000.00

Surplus..................................................................................

12,000,000.00

Undivided Profits...............................................................

5,469,791.49

Reserve for Taxes, Interest, etc....................................

12,720,802.79

Dividend Payable July 1,1947......................................

135,000.00

Letters of Credit and Acceptances O utstanding..

1,227,273.84

Other Liabilities................................................................

155,156.44

Deposits:
Demand............................................ $429,260,449.95
T im e .................................................
U. S. Government.........................

140,022,025.07
2,865,471.99

572,147,947.01

TOT AI.....................................................................................$606,855,971.57
United States G overnm ent securities carried in the above statem ent at
$7,473,593.75 are pledged to secure public and other monies, as required
by law; and U nited States G overnm ent and other securities carried at
$517,309.17 are deposited with the State Authorities under the Trust Act.

Member Federal Deposit Insurance Corporation

IIUUIMUUIIUIIIIIIIIIIM

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

Northwestern

Banker, July,

1947

72

Meeting increased service needs of correspondent
banks is helping us continue to grow in this— our
40th year. Looking ahead, we've organized a team
of officer-specialists whose constant aim is to provide
ever-better, complete correspondent banking facili­
ties. Organized to serve you well . . . friendly
enough to know you well . . . that's the combina­
tion our entire staff has to offer you in this— our
40th year.

STATEMENT

OF

CONDITION

JUNE

RESOURCES

30,

1 947

LIABILITIES

Loans and Discounts.......................................................$13,947,044.54

Capital Stock (Common)...............................................$

Bonds and Other Securities........................................

1,319,499.36

Surplus (Earned)

Stock in Federal Reserve Bank.................................

45,000.00

Banking House and Fixtures.....................................

1.00

Other Real Estate...........................................................

None

Interest Accrued on Government Securities, etc.

190,707.72

U. S. Government Securities.....................................
Cash and Sight Exchange..........................................

31,679,631.38
19,258,025.43

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

Undivided Profits ...........................................................

814,652.35

Reserve for Taxes, Interest, etc................................

249,416.79

Unearned Discount ......................................................

49,273.78

Dividends Payable July1, 1947.................................

7,500.00

Deposits

............................................................................ 63,819,066.51

$66,439,909.43

OFFICERS

and

500,000.00
1,000,000.00

$66,439,909.43

DIRECTORS

HENRY C. KARPF
P resident
WADE R. MARTIN
V ice P resident

R. H. KROEGER
Vice P resident

PAUL HANSEN
V ice P resident

W. DEAN VOGEL
Vice P resident

H. H. ECHTERMEYER
Vice P resident

C. G. PEA RSO N
C ash ier

L. V. PULLIAM
A sst. C ash ier

ALBERT R. STELLING
A sst. C ash ier

ELMER C. OLSON
A sst. C ash ier

LOUIS BARTA
A sst. C ash ier

ARMAND S. CHAVES
Auditor
W. P. ADKINS
O m ah a

H. B. BERGQUIST
C o al a n d G rain

L. S. BURK
C h icago

JA S J. FITZGERALD
P res. C om m ercial S a v .
<£ Loan A ssn .

JOHN R. JIRDON
Livestock & G rain
Morrill, Nebr.

LEO T. MURPHY
Vice P resident,
A llied M ills, Inc.

JA M ES L. PAXTON, JR.
P resident, PaxtonM itchell Co.

HERMAN K. SCH AFER
P resident, M an ey
M illing Co.

CARL A. SW A N SO N
P resident, C. A.
Sw an so n <5 Sons

J. L. WELSH
Butler-W elsh
G rain Co.

L IV E STO C K N A T IO N A L B A N K
OMAHA, NEBRASKA
M em ber F e d e ra l R e serv e Bank a n d F e d e ra l D eposit In su ran ce Corporation

T H E
Northwestern

Banker, July,


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

B A N K
1947

O F

F R I E N D L Y

24-HOUR

S E R V I C E

73

State Bank at Webb

I o \v a

N E W S
W. H. BRENTON
President
Des Moines

FRANK WARNER
Secretary
Des Moines

C en tra l N a tion a l H ank
H a s F o r m a l O pening
T HE Central National Bank and
Trust Company of Des Moines for­
mally opened its remodeled and exten­
sively enlarged banking quarters last
month. This marks the completion of
two years’ work on the old Crocker
Building, which is now named the
Central National Building.
The enlarged portion of the building
was designed for executive offices, the
trust department, bookkeeping rooms
and several other departments of the
bank which needed expanded facilities
due to increased business during the
past few years.
The bank was open for public in­
spection after hours and until 10 p. m.
one evening. Out-of-town bankers were
guests of William J. Goodwin, chair­
man of the board; President E. F.
Buckley, and other bank officers at a
social hour and banquet at Hotel Fort
Des Moines. After introduction of a
number of guests, a specially pre­
pared program depicting the birth and
growth of the Central National was
aired over Radio Station KSO into the
banquet room.
One feature of the newly remodeled

bank is a five-ton neon sign installed
recently on the corner of the bank
building at Fifth and Locust Streets.
Interior decorations were designed
with an eye to modern beauty, plus
practical, efficient working conditions.
On page 78 of the Northwestern
Banker will be found photographs of
two displays in the corridor of the
bank which represent scenes from the
year in which the bank was founded
—1895.

Renew Hartwick Bank
The Hartwick State Bank, Hartwick,
Iowa, renewed its articles of incorpora­
tion for another 20 years, at a special
stockholders’ meeting held last month.
Provisional directors are Clarence Possehl, Ben Roudabush, W. B. Ryan, W.
N. Shellenbarger, and Godfrey Veit.
Officers of the bank are: Ben Rouda­
bush, president; Clarence Possehl, vice
president; W. N. Shellenbarger, cash­
ier, and K. J. Benda, assistant cashier.
At the present time the bank has de­
posits of approximately $900,000 and
capital, surplus and undivided profits
of $54,000.

The Citizens State Bank, Webb,
Iowa, has succeeded to the business
of the Citizens National Bank, Webb.
The officers of the Citizens State Bank
are as follows: W. T. Bittinger, presi­
dent; R. S. Davis, vice president, and
R. W. Sanders, cashier.
The new bank opened with a total
capital structure of $55,000—$30,000 of
which is common stock and $20,000
surplus.

Buys Bayard Bank
Theodore J. Tokheim, president and
cashier of the Lytton Savings Bank,
Lytton, Iowa, has purchased control­
ling interest of the Farmers State
Bank, Bayard, from C. P. McDonald
and his associates.
Mr. McDonald is president of the
Farmers State Bank and has served
the public in Bayard for 47 years. He
will continue in the management of
the Bayard bank, in cooperation with
Mr. Tokheim.
The Lytton Savings Bank has de­
posits of $1,500,000 while the Bayard
bank has deposits totaling $1,000,000.
The purchase was negotiated through
the W. R. Olson Company.

Second Session at Ames
The second session of the Second
Annual Agricultural Credit School for
Iowa Bankers got under way July 7th
and will continue through July 19th.
The first session was completed last
month. This Agricultural School is
given under joint auspices of the Iowa
Bankers Association and the Iowa
State College of Agriculture, Ames,
where all classes are held.
Twenty-six students were registered
for the second session, two more than
the first session.
Subjects covered during the two
weeks include farm appraisal, soil
management, livestock problems and
special subjects at evening informal
discussions. Next year’s program is
expected to offer instruction in agri­
cultural engineering.

With Bank 54 Years

PRESIDING AT BANQUET for out o f town guests in celebration o f remodeled
and enlarged Central National Bank was President E. F. Buckley. At right— An
entertainer holds the attention o f Frank Warden, vice president; Dale Smith,
assistant cashier, and Art Donhowe, vice president, all of Central National Bank,
Des Moines, at the preJjanquet social hour.


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Federal Reserve Bank of St. Louis

Carl A. Parker, vice president of the
First National Bank, Mason City, Iowa,
completed 54 years as an employe and
officer of that bank the first of this
month when he retired from his rou­
tine executive duties. He will con­
tinue as a director of the bank. He
became assistant cashier in 1901 and
has been vice president since 1920.
Mr. Parker’s associates at the bank
and a number of other friends at­
tended a party for him, at which he
was presented with a new Ford car
as a “birthday” present from the bank.
Northwestern

B anke r, July,

1947

A t th e hura tirotip Steetinff#
(Reading from left to right)
No. 1. O liver Anderson, cashier, Farmers Savings Bank,
Fremont, and president of Group 10; G eorge R. Garton, presi­
dent, First State Bank, Chariton, and Group 10 secretary.
No. 2. W . H. B renton, president, Iowa Bankers Association,
Bes Moines; R. A . Sweet, vice president and cashier Story
County State Bank, Story City, chairman of Group 6; E. L.
Jenkins, supervisor of Iowa Bankers insurance program; and
Frank W arner, secretary, Iowa Bankers Association, Des
Moines.
No. 3. Thomas J. Neessen, assistant cashier, and H arry
M eints, director, De W itt Bank and Trust Company and Frank
Fuchs, assistant vice president First National Bank in St.
Louis.
No. 4. H arold W . Schaller, president and G eorge J. Schaller,
chairman of the board, Citizens First National Bank, Storm
Lake.
No. 5. W illiam W . Summ erwill, vice president, Iowa State
Bank and Trust Company, Iowa City, secretary Group 7 and

HE Iowa Group Meetings held re­
cently were very successful from
the standpoint of attendance and
the excellent programs which were
presented at each convention.
New group officers were elected for
Groups 3, 5 and 7, with a new secre­
tary being elected in Group 8.

T

Northwestern

Banker, July,


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

1947

E. G. E ngelhrecht, cashier, W averlv Savings Bank, retiring
chairman Group 7.
No. 6. H arold F. Stoner, president, W esley A. R oberts, di­
rector and John R. B u ckley, cashier, State Bank of Prairie City
and president o f Jasper County Bankers Association.
No. 7. R u th H eim erm an, A. J. H eim erm an, cashier, Stacyville Savings Bank and R ita H eim erm an.
These beautiful
19-year old twins led the beauty parade at the Eldora Group
Meeting.
No. 8. M arten J. Klaus, vice president, First Security Bank
and Trust Co., Charles City, chairman of Group 3, and R. C.
K eister, assistant vice president First National Bank, Mason
City, and secretary Group 3.
No. 9. W ayne C. Currell, president, Emmet County State
Bank, Estherville, president Group 2; and G eorge B. Aden,
cashier, Farmers National Bank, Webster City, who served as
acting secretary at the Group 2 meeting because of the illness
of G. E. A lexan der, president o f the same bank.

All officers for the 8 groups which
held their meetings, including the new
officers, are as follows;
Group 2-—Wayne C. Currell, presi­
dent, Emmet County State Bank, Es­
therville, chairman, and G. E. Alex­
ander, president, Farmers National
Bank, Webster City, secretary.

Group 3—Marten J. Klaus, vice presi­
dent, First Security Bank and Trust
Company, Charles City, chairman, and
R. C. Keister, assistant vice president,
First National Bank, Mason City, sec­
retary.
Group 4—J. V. Iveppler, cashier,
First National Bank, Dubuque, chair-

A

t

t h e

in s e n

tp rn

(R e a d in g fro m ie ft to rig h t)
No. 1. N. P. Black, state superintendent of banking, Des
Moines; H. C. Houghton, Jr., president, Houghton State Bank,
Red Oak and vice president Iowa Bankers Association, and
W. W. Blasier, president, Farmers State Bank, Jesup, and
candidate for president Iowa Bankers Association.
No. 2. Fred Maytag, II, director, Jasper County Savings
Bank, Mrs. Fred Maytag, II, and Lt. Ed Bailey, home on leave
from Germany and the son of Roy O. Bailey, president, Jasper
County Savings Bank, all of Newton.
No. 3. J. V. Keppler, cashier, First National Bank, Dubuque,
chairman Group 4, and Dr. Samuel Garvin, University of Du­
buque who addressed the meeting of Group 4.
No. 4. Bruce Townsend, president, City National Bank,
Clinton, chairman Group 8 and Edwin L. Wegman, vice presi­
dent, Citizens Savings Bank, Anamosa, secretary Group 8.
No. 5. “ Welcome hankers, 78c pound’ ’ was the greeting on
one of the store windows at Newton, where O. L. Karsten,
president of the Newton National Bank, is smiling his ap­
proval. L. M. Barlow, manager, Des Moines office Thomson-

man, and B. J. Baumgartner, cashier,
Elgin State Bank. Elgin, secretary.
Group 5—L. F. Kruse, president,
Mineola State Bank, chairman, and C.
K. Cullings, president, Exchange State
Bank, Exira, secretary.
Group 6—R. A. Sweet, vice president
and cashier, Story County State Bank,

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Federal Reserve Bank of St. Louis

McKinnon is probably saying 1‘ Oh, fudge. ’ ’
No. 6. Roger F. Warin, state director, United States Sav­
ings Bond division, Des Moines and Lee Chandler, cashier, Iowa
Savings Bank, Dike and chairman o f Group 7.
No. 7. James E. Fletcher of Des Moines is district manager
of Iowa and Nebraska for Wm. JI. Banks Warehouses, Inc. of
Chicago.
No. 8 C. K. Cullings, president, Exchange State Bank, Exira,
secretary Group 5 and L. F. Kruse, president, Mineola State
Bank, chairman Group 5.
No. 9. C. W. Conn, assistant cashier Union-Whitten State
Savings Bank, Union, Ben Jaspers, assistant cashier, Farmers
Savings Bank, Steamboat Rock, and T. L. Greenleaf, vice presi­
dent, Hardin County Savings Bank, Eldora. These men are all
officers of the Hardin County Bankers Association, being secre­
tary-treasurer, vice president and president respectively.
No. 10. G. M. Barnett, president, Guthrie County State Bank,
Guthrie Center, secretary o f Group 6, and Hugh R. Jackson,
deputy superintendent o f banks, Des Moines.

Story City, chairman, and G. M. Bar­
nett, president, Guthrie County State
Bank, Guthrie Center, secretary.
Group 7 — Lee Chandler, cashier,
Iowa Savings Bank, Dike, chairman,
and William W. Summerwill, vice
president, Iowa State Bank and Trust
Company, Iowa City, secretary.

Group 8 — Bruce Townsend, presi­
dent, City National, Clinton, chairman,
and E. L. Wegman, vice president,
Citizens Savings, Anamosa, secretary.
Group 10—Oliver Anderson, cashier,
Farmers Savings Bank, Wright, chair­
man, and George R. Garton, cashier,
Citizens State, Humeston, secretary.
Northwestern

B anke r, July,

1947

76

Iowa News

George Zentner
George Zentner, president and long­
time director of the First National
Bank, Bellevue, Iowa, died suddenly
last month of a heart attack. Mr. Zent­
ner had retired from his commercial
business in Bellevue two years ago,
but apparently had been in good health.

Bank Examiner Wed
Marjory Bickel, Vinton, Iowa, and
George W. Leonard, Sanborn, were
married in Iowa City last month. Mr.
Leonard is an examiner with the Iowa
State Department of Banking. He at­
tended Iowa State College and gradu­
ated from the Business Institute of

Milwaukee. The couple will reside in
Iowa City.

Plan Plowing Contest
Bankers of Marion county, Iowa, will
sponsor a county terrace plowing con­
test near Knoxville, Iowa, Thursday,
August 14th. This is a part of a wide
program of soil conservation and to
prevent soil erosion.
Sponsoring banks are the State Bank
of Bussey, the Pleasantville State
Bank, the Pella National Bank, the
Marion County State Bank, Pella, the
Community National Bank and Trust
Company, Knoxville, and the Iowa
State Savings Bank, Knoxville.

The farm chosen for the site is the
Ralph Sherwood farm, operated by F.
L. Fridlington. It is located nine miles
east of Knoxville on Highway 92. Be­
tween 3,000 and 4,000 persons are ex­
pected to attend the contest if good
weather conditions prevail.

50th Wedding Anniversary
Mr. and Mrs. John F. Gutz of Pom­
eroy, Iowa, last month celebrated their
golden wedding anniversary with open
house. Mr. Gutz is president of the
Pomeroy State Bank, a position he has
held since 1912. He started with the
bank as a bookkeeper in 1894 and was
made cashier in 1897, the same year
that he and Mrs. Gutz were married.

New Cashier at Rockford
CONDENSED STATEMENT OF CONDITION
JUNE 30, 1947

ASSETS
Cash and Due from Banks......................................................
U. S. Governm ent Bonds..........................................................
State, County an d M unicipal Bonds...................................
Other Bonds an d Securities.................................................
Stock in Federal R eserve Bank...........................................
Loans an d D iscounts................................................................
Bank Building, Furniture and Fixtures............................
Other A ssets ...............................................................................

S 4,698,465.71
9,682,904.58
179,498.54
92,450.24
24,000.00
. 5,944,230.63
152,500.00
3,086.34
.

820,777,136.04

L I A B 11 T I E S
C apital .........................................................................................
Surplus .........................................................................................
U ndivided Profits ....................................................................
R eserve for C ontin gen cies......................................................

400.000.
00
400.000.
00
94,419.88
125.000.
00

Total Capital A ccou n t.....................................................
R eserve for Taxes and Interest............................................
Other Liabilities .......................................................................
Deposits ......................................................................................

........................ $ 1,019,419.88
........................
47,981.62
........................
89.00
........................ 19,709,645.54
$20,777,136.04

A . G . Sam , President
Fritz Fritzson, Vice Pres, and Cashier

E. A . lohnson, Assistant Cashier

J. T. Grant, V ice President

H. H. Strifert, Assistant Cashier

J. R. Graning, Assistant Cashier

J. Ford W h eeler, Auditor

Alfred M. Sieh of Clinton, Iowa, was
elected cashier of the First State Bank,
Rockford, Iowa, at a meeting of the
board of directors last month.
The new cashier has been in the
banking business since 1935, and for
six years before entering the army
service was vice president and cashier
of the First State Bank, State Center,
Iowa. He attended the University of
Iowa for four years.

Meel in Diagonal
The First State Bank of Diagonal,
Iowa, was host to the Ringgold County
Bankers Association last month. Offi­
cers, directors and employes of the
three banks, with their husbands and
wives, were in attendance.
Thos. O’Meara, public accountant of
St. Joseph, Missouri, gave an address
on atomic energy. Thos. McCullough,
vice president and cashier of the First
St. Joseph Stock Yards Bank at St.
Joseph, and M. E. Blanchard, assist­
ant cashier, were also in attendance

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

//7 S f O U X C / f t f * * ★
Northwestern

Banker, July,


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

1947

F O U R T H and C R A N D
DES MOINES

77

Photo Used by Perm ission o J R a is ton-Purina Co.

S O M E T H I N G S C A N ’T W A I T
Come dawn, come dusk, it’s milking time . . . every­
day. There’s a right time to cut hay . . . a precise mo­
ment when the wheat and oats are headed, ready for
harvest . . . a day when the sap begins to run in the
sugar maples. Nature won’t allow some things to wait.

The Marquette National Bank is ready to serve
you “right now” . . . and every day to come.

Often there are times when one of your customers
needs a loan “right now” . . . to cover a commitment,
to take advantage of an unexpected offer or bargain
price, to meet a tax deadline. Perhaps his request comes
at a time when your bank is “loaned up” . That’s
when we at Marquette hope you’ll call on us. We’re
ready to step in, in emergencies. And of course, we’re
always ready to help you with your day to day needs
. . . to provide you credit information, trust service,
a depository for securities, foreign remittance-andcollection service, and to act as your agent in the
purchases and sale of government securities.

THE

S T R O N G


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Federal Reserve Bank of St. Louis

F R I E N D

OF

THE

R ussell L. Stotesbery

L ynn F uller

President
DEPARTMENT

Executive Vice-Pres.
OF

BANKS

Charles C. R ieger
Vice-Pres.

AND

BANKING

Oscar A. Schultz
Asst. Vice-Pres.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

I N D E P E N D E N T

B A N K E R

Northwestern

Banker, July,

1947

78

Iowa News

and appeared on the program. A film,
“Know Your Money,” sponsored by the
Federal Bureau of Investigation, was
shown.
•

Sell to Marion Bank
Stockholders of the Home Building
and Loan Association, Marion, Iowa,
last month voted to liquidate the or­
ganization and sell the assets to the
Farmers State Bank, according to E. T.
Brockman, secretary.
Approximately $180,000 is involved
in the deal. This includes $133,000
first mortgage loans on city real es­
tate, bonds, and other assets.
Stockholders of the association will

LIFE WITH FATHER

receive approximately $108 for each
share of $100 stock.

Named Director, Cashier
S.
Harry Whitehorn was elected to
the board of directors and named as
cashier of the Iowa Falls State Bank,
Iowa Falls, at a meeting last month
of that group. Whitehorn will fill the
vacancy on the board created by the
resignation of Henry Overbeck.
The directors also announce the em­
ployment of two new members of the
bank staff, Max Johnson, a graduate
of the University of Iowa, as a teller,
and Joan Ketchum of Alden in the
bookkeeping department.

A NOTE OF CONTRAST is pres­
ent in the new and enlarged bank­
ing quarters of the Central Na­
tional Bank, Des Moines, through
this hand carved replica (above) of
their first banking room, appearing
in the east hallway of the bank.

LIFE W ITH FATH E R in 1895 on
Walnut Street in Des Moines is de­
picted by a diorama (below ) in the
halls of the newly decorated Cen­
tral National Bank and Trust Com­
pany, Des Moines. Note the three
dimensional effect and minute detail
hand carved from balsa.

■

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*

FP

K -

-

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Elected to Board

That destroys Efficiency
Office n oise is a s fully a destructive force to em ploy ee, m orale,
health an d efficiency a s the im pact of a b o xer's g lo v e to his
opponent.
To overcom e noise w h erever p eop le a r e occupied, install
S p ra y e d Limpet A sb esto s.
A pp lied to ceilin gs it will reduce
disco rd an t sound, guieting the a r e a affected, resulting in higher
em ploy ee efficiency, m orale, health sta n d a rd s an d low er
ab sen teeism .

Dr. F. X. Tamisiea was recently
elected a director of the Peoples State
Bank, Missouri Valley, Iowa, to fill a
vacancy created by the recent death
of his father, Dr. John L. Tamisiea,
who was president of the bank.
When Dr. John L. Tamisiea died,
Dwight A. Schwertley, vice president,
automatically became president.
The board of directors elected John
A. Kovar vice president. Mr. Kovar
is also cashier of the bank. Donald
F. Schwertley is assistant cashier.

Discover the advantages of Limpet for yourself and for the good
of your business. Send your inquiry now !
WRITE OR TELEPHONE 3-4241

ZIPPERS REPLACED,
REPAIRED

H. B. BU CKH AM & CO.

on your night depository b a g s, brief
cases, traveling b ags and lu g gag e , golf
b a g s.
M ail to

Specialists in Acoustical Engineering

HOFFMAN TAILORS

410-20 SIXTEENTH STREET
N or th w es te rn Banker,

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

July,

1947

DES MOINES, IO W A

402 Sixth Avenue East
DES MOINES 9. IOWA


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Federal Reserve Bank of St. Louis

79

S t a t e m e n t of C o n d i t i o n
A S O F J U N E 30, 1947
RESOURCES

Loans and Discounts............................................... $ 8,795,188.28
Other Bonds and Stocks...........................................
65,500.00
Customers Liability on Letters of Credit............
39,590.00
Overdrafts ............................................. - ................
14.80
Government Obligations ...........$5,786,042.98
Municipal Bonds ............-.............
430,500.00
Cash and due from banks........... 2,496,781.54
8,713,324.52
$17,613,617.60
LIABILITIES

Capital Stock— Common .................... .................... $
200,000.00
Surplus......................................................- ................
200,000.00
Undivided Profits ............................. -.......................
159,429.17
Reserves .......................................... -.................... .
204,164.40
Unearned Discount .................................................
41,683.17
Bank Liability on Letters o f Credit......................
39,590.00
Deposits ..........- ........-.............. -........-..........—........ 16,768,750.86
$17,613,617.60

Valley BankandTrust Company
WALNUT AT FOURTH, DES MOINES
Frederick M. Morrison, President
Winfield W. Scott, Senior Vice President
J. R. Astley, Vice President
Edward P. Kautzky, Vice President
Roy E. Huber, Vice President
F. M. Thompson, Cashier
Ray L. Thompson, Asst. Vice President
Carl W. Altman, Asst. Cashier
George W. Gill, Asst. Cashier

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

B anke r, July,

1947

80

Iowa News

X etr H em e /Hannintf S ervice

With Onawa Bank
Herbert E. Taylor was to begin his
duties with the Onawa State Bank,
Onawa, Iowa, as field representative
of the bank this month. This is a new
department, instituted recently.
Until recently Mr. Taylor was asso­
ciated with the Farm Securities Ad­
ministration as manager of the branch
office in Onawa. This office has been
discontinued.

W. Sherman Goodell
W. Sherman Goodell, 80, vice presi­
dent of the Humboldt Trust & Savings
Bank, Humboldt, Iowa, died last month
after a long illness.
Born in Illinois, he moved to Hum­
boldt in 1891. He farmed for many
years before becoming associated with
the bank. Two sisters survive.

HOME BUILDERS in Des Moines can now plan their building and financing
in one place— in the mortgage loan department o f the Iowa-Des Moines National
Bank & Trust Company. Through the cooperation of Better Homes and Gardens,
well-known national magazine published in Des Moines, the Iowa-Des Moines
National Bank has made available to the public a new Home Planning Service,
located in the mortgage loan department of the bank.
There the prospective home builder w ill find a catalog of seventy Better
Homes and Gardens Five Star Plan Homes, and each month a new home plan
w ill be added. W orking drawing o f each of the homes is available, showing
down to the last brick, board, and nail the material necessary for the type and
size o f home chosen, and from which the contractor can figure cost ,to the last
penny, and from which he can proceed with construction with no other drawings
or specifications.
In the picture above, Mrs. Home Builder is pointing out to her husband a par­
ticular feature o f construction which appeals to her. Four models o f the Better
Homes and Gardens Five Star homes were on display.

Two New Directors
At a recent meeting of the directors
of the Hedrick Savings Bank, Hedrick,
Iowa, L. B. Miller and Leroy I. Rey­
nolds were appointed to the board of
directors of the bank to fill vacancies
created by the resignation of C. G.
Miller and J. B. Thompson.
George F. Schweitzer was elected
vice president to succeed C. G. Miller.

New Tingley Cashier
Walter Hyink, formerly of Hospers,
Iowa, has been elected cashier of the
Tingley State Savings Bank. He re­
places Forrest Galbraith, who resigned
recently to join the West Des Moines
State Bank.

Count Gibbs

S P it in e e k b

v

ìi

f jf i e c t a

/ S P e ^ v m ce f f i a

Count Gibbs, 61, cashier of the State
Bank of Farley, Iowa, and the town’s
village clerk, died of a sudden heart at­
tack at his home recently.
Mr. Gibbs was long active in the
community life of Farley and had been
in the state bank there for 30 years.
In addition to his banking duties, he
was in the insurance business, and
served as village clerk for many years.

i i A i n / jp

Ce n t r a l Na t io n a l B a n k

Murals in DeWitt Bank
Officials of the DeWitt Bank and
Trust Company, DeWitt, Iowa, recent­
ly held open house in the newly re­
modeled and redecorated bank build­
ing.

IN C H IC A G O
ROOSEVELT R O AD AT HALSTED STREET

Member Federal Deposit Insurance Corporation

•

Member Federal Reserve System

Did you know that this company has specialized
in Bank Insurance since 1919—that it has the inside
view on Bank Insurance problems? Consult
us freely at any time.
F IR S T

N A T IO N A L

BANK

N or th w es te rn Banker, July,


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Federal Reserve Bank of St. Louis

B U I L D IN G
1947

•

C H IC A G O

Scarborough & Company
Insurance Counselors
3, IL L IN O IS

•

STATE

432 5

to Banks

Iowa News
They are mounted on the walls in wal­
nut frames and were done in sepia
with 17 different tones being used.
Other officers of the bank are George
M. Smith, president; C. H. Arthur and
W. H. Walker, vice presidents; Thomas
Neessen, assistant cashier, and Paul
Siegmund, trust officer. Directors are
Mr. Smith, Mr. Walker, Mr. Arthur,
H. L. Irvin, Harry Meints, A. F. Deke,
and Mr. Floerchinger.

G. SAM, president of the First
. National Bank of Sioux City, re­
ports that he had a very pleasant trip

A

An outstanding feature in redecora­
tion of the bank is the directors’ room,
where a series of large murals (see
photo above), depicting early Clinton
county history, is on display. The
murals were painted by Leo Daub,
DeWitt artist, and were planned by
J. Yvo Floerchinger, bank cashier.


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Federal Reserve Bank of St. Louis

to the recent meeting in Minnesota.
He has no immediate plans for being
away from the bank until later in the
summer.
Fritz Fritzson, vice president and
cashier of the First National Bank,
attended the South Dakota State meet­
ing held at Sioux Falls June 20th and
21st. Joe Grant, assistant cashier, also
attended the meeting.
I). A. “Joe” Noble was elected direc­
tor at a recent board meeting at the
Live Stock National Bank. Mr. Noble
has been in Sioux City for 27 years.
He graduated from Iowa State College.

S io u x r//#/ N oirs

“ DISCOVERY” is the title of
this mural in the directors’ room of
the DeW itt Bank and Trust Com­
pany.
It depicts early Clinton
County life when scouts, Indians
and covered wagons were the bu f­
falo ’ s main competition.

81

i ir
mi
1A
11
«i ìli
lit
in UoJ ji

- « .

III 11
,1
III

OTTUMWA,

IOWA

M em ber o f F ed era l R eserv e S ystem
S ta tem en t o f C o n d it io n as o f J u n e 30, 1947

♦
RESO U RCES
...........................$ 3,830,215.75
...........................
91,500.00
...........................
25,571.75
...........................
30,000.00
...........................
4,265.24
$5,083,505.26
2,066,241.20
519,193.18
3,469,754.68
11,138,694.32

Loans and D iscou nts................
Bank Building ...........................
Furniture and F ixtu res............
Stock in Federal Reserve Bank
Overdrafts ...................................
U. S. B on d s...................................
Municipal Bonds .........................
Other Marketable B on d s..........
Cash and E x ch a n g e....................

$15,120,247.06
L IA B IL IT IE S
Capital .....................................................................................$
300,000.00
Surplus ..................................................................................
700,000.00
Undivided Profits ....................................................
108,182.31
Dividend Payable July 1, 1947.........................................
15,000.00
Deposits
................................................................. 13,997,064.75
$15,120,247.06

♦
O FF IC ER S
F R A N K V O N S C H R A D E R , Chairman of the Board
M A X V O N S C H R A D E R , President
H . L. P O L L A R D , V ice President
R. W . F U N K , V ice President
C L A R E N C E P. G L E N N , Cashier
W . C. M IL L E R , Assistant Cashier

FR E D D IM M IT T , Assistant Cashier
F R A N K M . P O L L A R D , Assistant Cashier
C. G. M E R R IL L , Trust Officer
J. C. B L A C K F O R D , M gr., Budget Loan Dept.

Southern Iowa's Largest Bank
M e m b e r Federal \Deposit Insurance Corporation

Northwestern

Banker,

July,

1947

82

Iowa News

l o i r a

A u d i t o r s E l e c t

He is an extensive land owner and

O f f i c e r slivestock feeder. His present business

connection is owner of the Iowa Stock
Pig Company which he has headed for
the last 27 years. Mr. Noble is a past
potentate of the Sioux City Shrine, a
past member of the school board and
one time president of the board. His
family includes his wife and one son.
Kermit Scheibe, cashier of the Morningside State Bank, is spending his
vacation in the north Minnesota lakes.

10 o s M o i n e s N e w s
F S. LOCKWOOD was elected vice
president and trust officer of the
Bankers Trust Company at the board
of directors’ meeting last month. Mr.
Lockwood has been with the Bankers
PRIN CIPAL SUBJECT up for discussion at the annual meeting last month
o f the Iowa Association o f Bank Auditors and Comptrollers was arrangement
for a schedule to be follow ed by Iowa banks in the destruction of old and per­
haps obsolete documents. The picture above was taken during the afternoon
session while the group was working on the ‘ ‘ destruction ’ ’ list.
At the annual meeting and election of officers, Harold E. Lemkau, assistant
cashier o f the Muscatine Bank & Trust Company, was named president. W. P.
Ronan, vice president of the Decorah State Bank was elected vice president, and
L. C. Siegner assistant auditor of the Iowa-Des Moiues National Bank, was
named to the office of secretary and treasurer.

STATEMENT OF CONDITION

FIRST NATIONAL BANK
C E D A R F A L L S , IO W A
June 30, 1947
RESO U RCES
Ca sh and D ue from B a n k s ............ S 1 .0 6 6 ,1 0 5 .8 2
U n ited Sta te s Governm ent B o n d s. 2 ,5 4 5 ,7 9 3 .3 4
S ta te and M u n icip al B o n d s ...............
3 2 2 ,9 6 2 .4 9
Stock in th e F ed era l Reserve B a n k
4 ,5 0 0 .0 0
Lo a n s and D is c o u n ts ..........................
3 8 6 ,3 7 8 .5 7
O verd rafts
...............................................
7 6 1 .8 3
B a n k in g House ......................................
2 1 ,5 0 0 .0 0
F u rn itu re and F ix t u r e s .....................
1 , 4 9 4 .1 7

L IA B IL IT IE S
C a p ita l Stock ...................................... . $
1 0 0 ,0 0 0 .0 0
S u rp lu s and U n d ivided P ro fits. . .
9 6 ,7 6 4 .1 6
Reserves ...............................................
6 ,5 3 6 .8 6
D eposits:
U . S. Gov­
ernm ent . . $
9 5 ,1 1 2 .0 0
D em and and
T im e . . . .
4 , 0 5 1 ,0 8 3 .2 0
4 .1 4 6 ,1 9 5 .2 0

$ 4 , 3 4 9 ,4 9 6 .2 2

$ 4 ,3 4 9 ,4 9 6 .2 2

V. W . Johnson, President
J. B. Newman, Vice President

V ic e

W . E. Brown, Cashier
H. C. Messerer, Assistant Cashier

Member Federal Reserve System
Member Federal Deposit Insurance Corporation

W í R .J . F L Y N N .P re s .

LITHOGRAPHING and
PRINTING

Í .

D .L .D U N G A N . Secy.5^

/ ?

Since
7 e ó ¿ ¡r

BANK FO RM S— R uled m achine Book­
k ee p in g Form s an d statem ents. S t a ­
tionery of a ll kinds.

\ &

s

' 9 ° 7

Co.
Advel«lisina
INC.
P

LAYOUT SERVICE

Sen d u s a copy of your letterh ead an d
w e w ill subm it to you a lay ou t of a
nice lith ograp h ed letterhead.

p o v e A Ì À /J u r u :

f o

t

OFFSET PRINTERS, INC.
M O IN ES

940 6th Ave., Des Moines 14, Iowa
L

Northwestern

Ba n ke r , J u l y , 1947


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Federal Reserve Bank of St. Louis

D

E S

^

F. S.
President,

LOCKW OOD
Bankers Trust Company

Trust since 1924 and was advanced
from the position of secretary and
trust officer. He has been secretary
15 years and trust officer 10 years.
Mr. Lockwood came to Des Moines
from Bayard where he had begun his
banking career with the Farmers State
Bank. He joined the Northern Trust
Company here, which later was con­
solidated with the Bankers Trust Com­
pany. He attended Iowa University
and Drake University.
John de Jong, vice president of the
Iowa-Des Moines National Bank and
Trust Company, was honored last
month when he was awarded the
Netherlands Medal of Gratitude at a
ceremony at the Drake Hotel in Chi­
cago.

This award of distinction was made
to Mr. de Jong for his outstanding
work in the interests of relief for
Dutch people since the end of the war.

Iowa News
Mr. de Jong is directly responsible for
a program which has aided more than
5,000 Dutch families, and he and his

83

DES MOINES BUILDING-LOAN &
SAVINGS ASSOCIATION
Oldest in Des Moines
210 6th Ave.

Dial 4-7119

E L M E R E . M IL L E R
Pres, and Sec.

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

FOR Y O U R EN JO YM E N T . . .

IO W A •LITHOGRAPHING •COM PANY

Listen to the
“ W ORLD
K R N T , 1350 KC

FOUNDED BY GEORGE H. RAGSDALE •

OF M U S IC ”

EDWIN G. RAGSDALE • SECRETARY

515 TWENTY EIGHTH STREET

1 to 1 :3 0 p.m . Sundays

DES • M O I N E S

Q U A L I T Y

- E X P E R I E N C E

• S E R V I C E

« icaco:

J O H N D E JO N G
Given Aw ard of M erit from H olland

wife have sent an additional 1,000
packages to deserving families.
The presentation was made by
Jonkheer O. Reuchlin, minister of the
Netherlands in Washington, D. C. Leo
T. Crowley, former chairman of the
FDIC, also was given an award at the
same ceremony.
Hal Chase, president of the Chase
Investment Company in Des Moines,
last month also became president of
the West Des Moines State Bank fol­
lowing purchase of all stock by the
Chase family.
Forrest Galbraith, new vice presi­
dent and cashier, has been serving as
cashier of the Tingley State Savings
Bank. He is a member of the board
of directors, along with Mr. Chase,
Marie M. Chase, Don McMurray and
Ralph J. McKenzie, all of Des Moines,
and Ray Spencer and William Berg,
both of West Des Moines.

THE DROVERS“ YELLOWBOY
AD VIC E IS W E L L K N O W N
T O BANKERS W H O SE CUS
TOMERS SHIP LIVESTOCK TO
CHICAGO. IT IS THE SYMBOL
OF FAST, FRIENDLY SERVICE
IN COLLECTING LIVESTOCK
PROCEEDS.

Henry F. Reed has been appointed

to the personal agency division of the
Iowa-Des Moines National Bank’s
trust department by Herbert L. Hor­
ton, president. He will assist indi­
viduals, corporations and institutions
with their investments.
Mr. Reed was born in Cresco, Iowa,
attended Carleton College at Northfield, Minnesota, and graduated from
the law college of the University of

DROVERS NATIONAL BANK
DROVERS TRUST 0 SAVINGS BANK
I C A G 0

YOUR STATE BANKERS ASSOCIATION
OFFICIAL SAFE, VAULT AND
TIMELOCK EXPERTS

F. E. DAVENPORT & CO.
OM AHA


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Federal Reserve Bank of St. Louis

Northwestern

Banker, July,

1947

84

Iowa News

Iowa in 1936. He practiced law until
entering the army in 1942, where he
served four years. Mr. Reed has
served as county attorney of Howard
county and more recently was assist­
ant secretary of the state senate in
the last session.

Members of the association are: Des
Moines Building-Loan and Savings,
First Federal Savings and Loan, Home
Federal Savings and Loan, Insurance
Plan Savings and Loan, Iowa Savings
and Loan, Polk County Federal Sav­
ings and Loan, State Savings and Loan,
and United Federal Savings and Loan.

James M. Camp, head of the United
Federal Savings and Loan Associa­
tion, was elected president of the new­
ly formed Greater Des Moines Savings
and Loan League. Hubert James, Des
Moines Building-Loan and Savings,
was named vice president, and Jona­
than Fletcher, Home Federal Savings
and Loan, was elected secretary-treas­
urer.

Elmer E. Miller, president of the
Des Moines Building-Loan and Sav­
ings Association, announced l a s t
month that total assets of the com­
pany had passed the $10,000,000 mark.
In celebration of this event the entire
personnel of the association attended
a dinner at the Commodore Hotel.
Present at the dinner were two direc-

tors' who have been board members
since the organization in 1916. They
were A. H. Minnis, founder and chair­
man of the board, and E. S. Tesdell,
counsel.
Mr. Miller said dividends payable to
shareholders for the first half of 1947
were $149,228.

DEAR EDITOR
(Continued from page 15)
necessary for me to tell you of my pleasure
in finding that some o f my views are con­
curred in by the oldest financial journal
‘west o f the Mississippi’
J. L. Robertson, Deputy
Comptroller o f the Currency,
Washington, D. C.

"An Excellent Example"

Statement of Condition
J u n e 30, 1947
ASSETS
Cash on Hand and on Deposit with Banks.............$ 7,710,437.37
United States Government Securities..................... 14,446,030.91
Other Bonds and Securities.......................................
142,211.38
Loans and Discounts................................................... 5,168,035.90
Security National Bank Building, Vault and Fix­
tures ........................................................
342,037.07
Federal Reserve Bank Stock.....................................
27,000.00
Other Assets ...............................................................
3,756.42

“ During the Illinois State Bankers Asso­
ciation’s convention I ran across the en­
closed — and I believe very interesting —
published statement o f condition which is
the w’ork o f J. R. Drake, Executive Vice
President o f the Pella National Bank, Pella,
Iowa.
“ It strikes me that this statement is an
excellent example of how fiscal information
can be presented in a way that leads to
better bank-community relations.
“ As you can gather from the prefatory
material, the annual tulip festival is a big
event in Pella. Mr. Drake has undoubtedly
created a lot o f good will for his bank. I
am sending this along for your information.”
C. A. Hemminger, Director
o f Public Relations, Ameri­
can National Bank and Trust
Company, Chicago, Illinois.

"A Good Job"
$27,839,509.05
LIABILITIES
Capital .......................................................................... $ 500,000.00
Surplus .........................................................................
400,000.00
Undivided Profits .........................................................
91,556.34
Deposits ....................................................................... 26,847,952.71
$27,839,509.05
D IR E C T O R S
Paul Bekins
Charles R. Gossett
H arold A . Jacobsen
Edward C. Palm er
George L . Booth
O tis P. Garrison
W m . W . M acF arlane
George C. Pechstein
H arry P. Pratt
D. W .

O F F IC E R S
Charles R. Gossett, P resid ent
B. M . W h ee lo ck , V ic e P resid ent
A lbert C. Eckert, V ic e P resident
D aniel B. Severson, V ic e P resident
R. E arl Brown, Cashier
Frank H . A b el, A ssista n t Cashier
Robert W . L ew is, A ssista n t Cashier
Charles H . W a lc o tt, A ssista n t Cashier
O rville Boe, A ssista n t Cashier

e n jo y

m ore o f the a rticles in the
N o r t h w e s t e r n B a n k e r th an in an y other

B a n k ers:
W e specialize in
writing

Automobile
and

Fire Insurance

Howard Johnson, Trust Officer
Jurgemeyer, A ssista n t T rust Officer

C E C U R IT ’* /
V J of Sioux City JL
M em ber

“I

Federal

D eposit

Insurance

Corporation

★

CENTRAL STATES MUTUAL
INSURANCE ASSOCIATION
Mt. Pleasant, Iowa
E. A. HAYES,

President

O. T. WILSON.
Esta blished

Northwestern

Banker.


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

July,

19 4 7

192 9

Secreta ry

Iowa News
“ Appreciating the many contributions that
you have made to banking, both personally
and through your excellent publication, I
am, believe me, with every good wish for
your continued success.

SOLVES HOUSING PROBLEM

C ord ia lly
and s i n c e r e l y ,
M a p le T. K a r l, Chairm an,
F e d e r a l D e p o s it In su ra n ce
C orp ora tion , W a s h i n g t o n ,
D. C.

85

Chemical Bank
The Chemical Bank & Trust Com­
pany reported as of June 30, 1947, dedoposits of $1,168,958,598, and total
assets of $1,293,093,043, compared re­
spectively with $1,114,939,997 and $1,238,076,886 on March 31, 1947. Cash on
hand and due from banks amounted to
$325,011,456 compared with $282,009,-

STATEMENT OF CONDITION
June 30, 1947
RESOU RCES
C a sh and D ue from B a n k s .......................................................................................................... $
L o a n s and D is c o u n ts ......................................................................................................................
Bon d s
U . S . Govern m ents ........................................................................... $ 6 ,0 2 5 ,8 2 6 .9 2
Fe d e ra l L a n d B a n k s .........................................................................
3 1 2 ,2 8 2 .0 9
M u n icip als
...........................................................................................
7 2 7 ,3 7 8 .9 8
O th e r M ark etab le S e c u rit ie s .......................................................
1 ,0 8 6 ,2 0 9 .5 1

Wayne C. Currell, president Em­
met County State Bank, Estherville, Iowa, has been helping to
solve the housing problem in his
community by assisting in the fi­
nancing o f the houses shown in the
picture above. Other communities
are follow ing the example of Estherville including Britt and Charles
City, Iowa.
In the latter com­
munity, 50 houses are being financed
by the local banks.

Sto ck in Fed era l Reserve B a n k ..............................................................................................
B a n k in g H o u s e ..................................................................................................................................
F u rn it u re and F ix t u r e s ................................................................................................................
A ccru ed Interest ............................................................................................................................
O verd rafts ...........................................................................................................................................
O ther R e s o u r c e s ........................................................................................

3 ' f ;2 2 ,5 8 1 .4 5
2 ,8 0 4 ,0 0 6 .6 2

8 ,1 5 1 ,6 9 7 .5 0
1
3 6 ,0 0 5 .5 4
„ '> “ 3 7 .3 6

45’§T1-2?

„ ? 1 8 .7 1
4 ,4 9 0 .9 2
$ 1 4 ,2 9 0 ,8 0 9 .1 6

L IA B IL IT IE S
C a p ita l
................................................................................................................................................ $
4 0 0 ,0 0 0 .0 0
S u rp lu s
....................
2 0 0 ,0 0 0 .0 0
Un d ivid ed Profits ............................................................................................................................
Reserve for T a x e s, Interest, C o ntin g encies, e tc ...................................................................
8 9 ,1 5 9 .8 5
D isco u n t collected but not e a rn e d .............................................
2 0 ,6 2 1 .8 8
D eposits
D em and ...................................................................................................$ 8 ,9 2 9 ,9 3 1 .5 1
T i m e .......................................................................................................... 4 ,4 2 6 ,9 7 5 .8 1
U . S . G overnm ent W a r Lo a n A c c o u n t ...................................
9 2 ,8 6 2 ,5 2
1 3 ,4 4 9 ,7 6 9 .8 4
$ 1 4 ,2 9 0 ,8 0 9 .1 6

publication o f its kind. You are doing a
particularly good job of giving us the
banking news in the northwest. Best regards
and continued good luck and prosperity.”
B a y G. S tev e n s, P r e s id e n t,
C itizen s Panic, V erm illio n ,
S ou th D a k o ta .

NATIONAL

F IF TH A V E N U E
SOUTH-226*

BANK

C ê T n to n , V e n a

M em ber of T h e Fe d e ra l D eposit Insu ra n ce Co rp oratio n, W a sh in g to n , D . C .
$ 5 ,0 0 0
-------M axim um In su ra n ce fo r E a c h D epositor
-------$ 5 ,0 0 0

"Chief Keokuk"
“ I appreciate very much your interest in
our new checks which we hope to have in
circulation the first part o f July. All types
are not on hand yet, but I am enclosing a
sample of one of our counter cheeks. We
believe the design will be appealing to our
customers.
“ This same design is carried out through
checks, drafts, bank money orders, cashier’ s
checks, and will be on our passbooks. It
shows old ‘Chief Keokuk’ as he now appears
in bronze on a monument in our city park
overlooking the ‘Father o f Waters’ .”
E . A . E b e r s o le , V ic e P r e s i­
d en t and C ashier, T h e S ta te
C en tra l S a vin gs B a n k , K e o ­
kuk, Io w a .

CASH

W e will buy for cash or sell on commission truckload or carload quantities of distressed or surplus
raw materials and merchandise.
If you have goods of this character as collateral,
we may be able to sell it for you.
Write, phone or wire your problem.

"Many Contributions"
“ Many thanks not only for your letter,
but likewise the plug that you gave this
corporation on page 17 of the June issue
of your splendid N o r t h w e s t e r n B a n k e r .
“ We sincerely trust that business or
pleasure will bring you to the Nation’ s
capitol in the not too distant future, further­
more, that while here you will include
us on your busy itinerary.

M. B. COSTELLO & CO.
325 Insurance Exchange Building

N A T IO N A L


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Federal Reserve Bank of St. Louis

BANK

B U I L D IN G

•

Phone 2-3948

DES MOINES 9, IO W A

Did you know that our Cash Letter Policy not only
gives protection but enables you to cut operat­
ing expenses substantially? Ask us for
details. You will not obligate
yourself.
F IR S T

for Collateral Merchandise

C H IC A G O

Scarborough & Company
Insurance Counselors to Banks
3, IL L IN O IS

•

STATE

4325
Northwestern

Banker,

July,

1947

86

Iowa N e w s

919; holdings of United States Govern­
ment securities to $463,613,551 against
$471,050,209; bankers’ acceptances and
call loans to $84,155,716 against $51,087,881; and loans and discounts to
$284,925,140 against $309,746,354.
Net operating earnings for the sec­
ond quarter of 1947 amounted to $1,782,938 as compared to $1,703,362 for the

preceding quarter. Net profits and re­
coveries on securities amounted to
$349,797 against $497,557.
Capital was unchanged at $25,000,000,
but surplus was increased by $5,000,000
to $75,000,000 and undivided profits
were $7,289,613 against $9,150,365 on
March 31st. The indicated net earn­
ings on the bank’s 2,500,000 shares (par
$10) amounted to $.71 per share-for the
second quarter of 1947 as compared
with $.71 in the first quarter.

KLIPTO

“ What’s an operetta?”
“ Don’t be dumb — it’s a girl who
works for the telephone company.”

MASON CITY, IOWA
Bank Supplies

STATEMENT OF C O N D I T I O N

M ERC ANTILE-C OM M ERC E
BANK

A N D TRUST C O M P A N Y

Locust-Eighth-St. Charles
ST. L O U I S , M I S S O U R I

JUNE

3 0 , 1947
☆

THE

RESOURCES

Cash and Due from Banks________ $83,516,709.15
United States Government Obligations, di­
rect and guaranteed (incl. $14,531,541.18
pledged*)______________________ 149,715,961.85
Other Bonds and Securities________ 17,390,601.74
Demand and Time Loans_________ 92,419,148.16
Stock in Federal Reserve Bank in St. Louis.
600,000.00
Real Estate (Company’s Building)__ 2,790,536.40
Other Real Estate (Bank o f Commerce
Building)______________________
700,000.00
Overdrafts_______________________
78,245.82
Customers’ Liability on Acceptances and
2,657,523.96
Letters o f Credit_______________
Other Resources_________________
224,576.47
$350,093,303.55
THE

LIABILITIES

Capital Stock____________________ $12,500,000.00
Surplus__________________________ 7,500,000.00
Undivided Profits________________ 4,743,340.20
Reserve for Dividend Declared___
250,000.00
Reserve for Interest, Taxes, etc.___ 1,904,679-23
Unpaid Dividends_______________
3,369.55
Bank’s Liability on Acceptances and Letters
of Credit______________________ 2,657,523.96
Other Liabilities_________________
258,635.11
Deposits, Secured:
U. S. War Loan $
Other Public
Funds_______

1,943,305.95
5,566,358.82 $

A ll securities pledged are to the U. S. Government or its Agents, State of
Missouri and the City o f St. Louis, to secure deposit and fiduciary obligations.

MEMBER

Northwestern

B anke r,


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

FEDERAL

July,

1947

DEPOSIT

INSURANCE

director, were elected assistant cash­
iers.
Mr. Clarke, who joined the bank’s in­
vestment division in 1935, is a graduate
of the University of

fe re n c e s
j.

h

.

clarke

and

b a n k in g

a n d in s u ra n c e c o n v e n ­
tio n s .

Mr. Herrmann, who became associ­
ated with the bank in January, 1947,
formerly was vice president and gen­
eral manager of Workmen Service,
Inc. Prior to that he was in charge
of the personnel department of the
Peoples Gas, Light and Coke Company.
Mr. Hemminger, who joined the
bank on March 1st, was formerly ad­
vertising and publicity manager of
Bankers Trust Company, New York
City. Previously, he had been director
of public relations with the New York
State Bankers Association. He was
graduated from the University of Illi­
nois in 1930 and from the Graduate
School of Banking, Rutgers University
in 1946.
Foss Davis, warden of the Men’s
State Reformatory at Anamosa, Iowa,
acted as host for a number of the
women and some of the bankers who
were attending the bankers conven­
tion of Group 8.

We were interested to find out that
the majority of those who are admitted
to Anamosa are between the ages of
18 and 30. There are now 656 inmates
in the institution, of which 114 are
insane, 542 are sane, 27 are negroes
and 629 are white.
The institution was opened in 1872
and part of the building was then used
for a women’s reformatory, but this is
no longer the case. The high regis­
tration number is 18,992.

$312,766,090,73 $320,275,755.50
$350,093,303.55

*

(Continued from page 20)

All members of the institution who
are sane are taught some useful em­
ployment like weaving, printing, or
some form of manufacturing.

7,509,664.77

Other Deposits:
Demand_______ $255,008,196.15
S a v in g s___________________________ 56,736,645.72
T im e __________
1,021,248.86

NEWS AND VIEWS

CORPORATION

Dr. Samuel Garvin, professor of the
University of Dubuque, speaking be­
fore a recent bankers convention, em­
phasized that in his experience as a
pastor for over 40 years, that “ more
divorces have been caused from lack
of finances than from any other three
causes combined.”

Iowa N e w s

Orvil E. Miles, assistant secretary of
the Irving Trust Company, One Wall
Street, New York, paid a visit to the
N o r t h w e s t e r n B a n k e r office when he
was swinging around the circle last
month.
Mr. Miles attended some of the Iowa
Group Meetings and also was at St.
Paul for the Minnesota Bankers Con­
vention.
After graduating from- Earlham Col­
lege at Richmond, Indiana, Mr. Miles
attended Harvard Business School and
received his degree from there in 1926,
at which time he became associated
with the Irving Trust Company where
he has been ever since.

In a recent issue of Life there was
a story about Sauk Centre, Minnesota,
reviewing the conditions since the
time when Sinclair L e A v i s wrote his
novel “Main Street.”
In discussing the various prominent
citizens of Sauk Centre, the article
said, “Ben DnBois, bank president and
secretary of the Independent Bankers
Association, is definitely a member of
the town’s elite. Though a man of
quick imagination, quiet humor (un­
usual in the loud-laughing midwest)
and wide knowledge, he is content to
stay in Sauk Centre. He likes Sauk
Centre’s kindly people. Nevertheless,

he loves to shock them with simple
statements like, ‘My great-aunt was
one of the most notorious prostitutes
in Syracuse, New York,’ or with his
New Deal columns on current events,
which he runs as advertising in the
Sauk Centre Herald. He is one of
the town’s few Democrats, proudly
proclaims himself a member of no
church, reads voraciously from Harold

87

Laski to Montaigne. His political
philosophy contains the great contra­
diction which has virtually killed off
liberalism, the great dilemma at the
core of the democratic crisis; he advo­
cates a strong central state to act as
umpire over economic affairs, and yet
he also deplores the increasing regi­
mentation and standardization of hu­
man beings. His many political oppo-

Opened for Business October 15, 1934
Statement of the

IOWA STATE BANK & TRUST COMPANY
Iowa City, Iowa
June 30, 1947
RESOURCES
Cash and Due from Banks.........................................................................$2,459,916.07
U. S. Bonds ....................................................................................................... 5,475,596.88
Other Bonds and Securities ....................................................................

89,692.30

CASH OR ITS EQUIVALENT .......................................................................................................$ 8,025,205.25
Loans and Discounts .............................................................................................................. 2,887,727.34
Overdrafts .....................................................................................................................................
Banking House ............................................................................................................................

128-64
50,000.00

Furniture and Fixtures .........................................................................................................

25,000.00
$10,988,061.23

LIABILITIES
150,000.00
154,419.35
. 10,683,641.88
NONE

Capital Stock ........................................
Surplus and Undivided Profits....
Deposits ..................................................
State Treasurer Fuel Tax Fund.

$10,988,061.23

M ERCH AN TS
M U T U A L

BO N D IN G
COM PANY

O F F IC E R S
B e n S. S u m m e r w i l l , President
D r . E . M . M a c E w e h , V ice President
W . W . S u m m e r w i l l , V ice President
M. B . G u t h r i e , Cashier
W . F. S c h m i d t , A ss’t Cashier
J a s . H . S c h m i d t , A ss’ t Cashier
M . E . T a y l o r , Auditor

D IR E C T O R S
D r,

E. M . M a c E w e n
R . J. B a s c h n a g e l
M . B . G u t h r ie
G eorge A . T h o m p s o n
Gu y A . S t ev e n s
B e n S. S u m m e r w i l l
W . W . Su m m e r w il l

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Incorporated 1933

Home Office
SO UTHERN

SU R ETY

B U IL D IN G

Des Moines, Iowa

Am erican T ru s t & Savings Bank
DUBUQUE, IOWA

•

Incorporated 1912

Organized 1905

STATEMENT OF CONDITION, JUNE 30, 1947

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

©
Write to

E. H. WARNER
Secretary and M anager


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

RESOU RCES
Cash and D ue from B a n k s ............$ 3 ,9 7 5 .8 3 4 .1 8
U. S . Governm ent B o n d s ............ 1 0 ,6 5 5 0 5 4 .9 5
1 8 ,0 0 0 .0 0
Fed era l Reserve B a n k Stock .
S ta te , Co u n ty and M u n icip al
8 6 3 .9 4 3 .3 3
Bonds .........................................
1 5 2 ,5 9 8 .2 8
Corporate Bonds ........................
2 .7 4 6 ,0 2 9 .6 4
Lo a n s and D is c o u n t s ...............
8 9 .7 7
O v e r d r a f t s .......................................
5 0 ,0 0 0 .0 0
B a n k B u ild in g ...........................
5 2 .6 0
O ther A ssets ................................

L IA B IL IT IE S
C a p ita l Sto ck ...................................... $
S u r p l u s .....................................................
U n d ivided Pro fits ..............................
Reserves ..................................................
D ep o sits:
Dem and . . . 8 9 2 3 2 .0 5 2 .7 5
T im e ............ 8 ,2 4 1 ,2 9 9 .3 8
U . S . Gov.
W a r Loan
A c c o u n t ..
1 3 6 ,9 0 8 .3 6

1 7 ,6 1 0 ,2 6 0 .4 9

$1 8 ,4 6 1 ,6 0 2 .7 5

OFFICERS
C. J. SCHRUP, Chairman of the Board
D. W. ERNST, President
ROY F. GRAB, First Vice President
KLEINSCHMIDT, Vice President
VOGL. Vice President and Cashier
... „. GRETEMAN, Vice President
M. .T. BAUMHOVER, Assistant Cashier
MERLYN B. KURT, Assistant Cashier
J. L. RILEY, Assistant Cashier
I. L. KIELER. Assistant Cashier
HARLAN MELCHIOR, JR., Assistant Cashier

£

2 5 0 .0 0 0 .
00
3 5 0 .0 0 0 .
00
1 2 6 ,3 4 2 .2 6
1 2 5 .0 0 0 .
00

$ 1 8 ,4 6 1 ,6 0 2 .7 5

DIRECTORS
C. J. SOHRUP, Chairman
D. B. CASSAT
D. W. ERNST
ROY F. GLAB
W. N. GLAB
OTTO F. HENKER

Northwestern

Banker, July,

1947

88

Iowa News
nents in the town tolerate Ben DuBois’ once intolerable heresies, not
merely because he is a solid citizen,
but because it has become more diffi­
cult for Main Street to tell which is
the true faith and which is heresy.”

STATEMENT OF CONDITION

TH E T O Y N A T IO N A L B A N K
SIOUX CITY, IOWA
June 30, 1947
ASSETS
Cash and Due from B anks.........................................................

..$ 8,132,194.78
.. 16,741,875.24
165,869.65
24,000.00
80,003.50
.. 2,903,219.74
105,507.66
76,336.40

U. S. Government Securities....................
State an d M unicipal Bonds.......................................
Stock in Federal Reserve Bank...........................................
Other M arketable Bonds.............................................................
Loans and Discounts..................
Banking House ..............................................
Interest Earned Not C ollected..........................................

$28,229,006.97
LIABILITIES
Capital (common stock only)....................................................
..$
300,000.00
Surplus
..............................................
500 000 00
U ndivided Profits ........................................................
144,774.44
R eserves ............................
71,465.74
Dem and Deposits ....................................
$22,928,425.69
Time Deposits .............................................
4,275,126.08
Total Deposits ........................................
Interest Collected Not Earned..........................................

. 27,203,551.77
9,215.02
$28,229,006.97

M em ber of Federal D eposit Insurance Corporation

STATEMENT OF CONDITION

I O W A

S T A T E

B A N K

DES MOINES, IO W A
At the Close of Business June 30, 1947
ASSETS

L IA B IL IT IE S

Cash and Due from B a n k s . . . . $ 997,675.58
U . S. Government Securities. . 1,392,100.00
Other Bonds and S e c u r i t i e s ....
156.57
Loans and D isc o u n ts................... 3,894,797.03
Interest Earned But N ot
C ollected
........................................
11,598.71
Furniture and Fixtures
(L e ss R eserve) ............................
13,746.63

Capital Stock (C o m m o n )............$ 100,000.00
Surplus
.......................................
50,000.00
Reserves and Undivided Profits
144.454.28
D eposits
.............................................. 6,015,620.24

$6,310,074.52

$6,310,074.52

O F F IC E R S
W M . A . B R O Q U I S T , President
C A R L W . M O O D Y , Cashier & Tr. Officer
G E O . H . B O R G , E xecutive V ice President
H A R O L D J. G R I M E S , A ssistan t Cashier
J. H A M I L T O N D A W S O N , V ic e President
F. T . L E W I S , A ssistan t Cashier
L. A . R O D E N B A U G H , JR ., V ic e President
W . L . W I L D E R , Assistan t Cashier
M em b er Federal D e p o s it Insurance

Corporation

Federal Home Loan Bank of Des Moines
DES MOINES, IOW A
STATEMENT OF CONDITION, JUNE 30, 1947
RESOURCES

L IA B IL IT IE S

Cash

...................................................................$

U.

G o v e r n m e n t O b lig a t io n s a n d S e ­

S.

c u r it i e s f u l l y g u a r a n te e d by U . S .
A d v a n c e s to M e m b e r s ...............................
♦ C o n s o l ¡d a te d
O b lig a t io n s — D is c o u n t
a n d E x p e n s e .............................................
A ccru e d

I n te re s t

O th e r R e so u rce s

4 4 7 ,1 5 9 .3 0

D e p o s its — M e m b e r s

1 2 ,6 5 3 ,3 2 5 .0 4
2 3 ,6 2 0 ,3 5 6 .2 5

5 9 ,6 7 5 .0 6
2 3 8 .1 5

I n te re s t

P a y a b le .......................

A cco u n ts

P a y a b le

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

P a y a b le — J u l y

♦ C o n s o lid a t e d
C a p ita l

8,

O b lig a t io n s

S to ck

1 .0 0

in

$ 1 4 0 ,0 0 0 ,0 0 0

L o a n B a n k A d m i n is t r a t io n a n d
F e d e ral H om e Loan Banks.

Northwestern

Banker,


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

July,

C o n s o lid a te d
now

Fe d e ral

o u t s t a n d in g ,

1947

3 9 ,2 2 6 .6 5
4 9 3 .1 2

1 9 4 7 ...

1 0 8 ,4 7 9 . 5 0

O u t s t a n d in g

1 5 ,0 0 0 , 0 0 0 . 0 0

S u b s c r ip t io n s

P a id

In.

George C. Williams, president of the
State Bank and Trust Company,
Evanston, Illinois, was elected presi­
dent of the Illinois Bankers Associa­
tion at the annual meeting.
Other officers of the Illinois Bankers
Association are: Vice president, Harry
E. Emerson, cashier, First Bank and
Trust Company, Cario; treasurer, J.
Weir Elliott, Jr., cashier, Elliott State
Bank, Jacksonville. Continuing in
office: Secretary, Harry C. Hausman,
Mundelein; assistant secretary, Kirk
E. Sutherland, Wilmette; assistant sec­
retary, H. T. Wanberg, Evanston.
Frank H. Bellizzi, resident manager
of the Hotel St. Paul, did an excellent
job during the Minnesota Bankers Con­
vention, which headquartered at his
establishment during their meeting
last month.
Frank always makes you feel “at
home” and is never too busy to see
that your slightest wish is taken care
of if it is within his power—and he
has lots of power, in addition to being
a very handsome and charming gen­
tleman. When Frank went in the
hotel business, Hollywood lost a lead­
ing man.
W A N T E D — A ssistant Cashier fo r a
county bank, tow n 550 located in Central
North Dakota. Good living conditions.
Single man preferred. Lutheran Com ­
munity. W rite M .W .A. c /o Northwestern
Banker— 527 7th St., Des Moines, Iowa.

1 4 ,7 4 5 ,0 0 0 .0 0

U n d iv id e d

.............. $ 1 , 5 5 2 , 1 7 0 . 1 0
P ro fit s

1 4 4 ,4 6 5 .1 3

$ 3 6 ,8 0 0 ,5 4 6 .4 6

♦ P a r t ic ip a t io n

5 ,2 1 0 ,7 1 1 .9 6

In a letter from James T. Anderson
of George La Monte & Son, Nutley,
New Jersey, he tells the N o r t h w e s t e r n
B a n k e r of the recent death of “Dan J.
Lyons, who, as you no doubt know,
has been with our company for nearly
33 years, and has had his office at St.
Louis for many of those years.”

S u r p lu s :
R e serve s

F u r n it u r e a nd E q u ip m e n t
(C o st $ 1 0 , 4 6 7 . 7 6 )

C A P IT A L

A ccru e d

D iv id e n d s

1 9 ,7 9 1 . 6 6

R e c e iv a b le .................
..........................................

AND

.................................... $

Ray R. Calkins, president of the
American National Bank of St. Joseph,
Missouri, has been elected president of
the St. Joseph Clearing House Asso­
ciation, and follows in the footsteps of
Milton Tootle, president of the TootleLacy National Bank. Last month the
officers of the American National Bank
celebrated the 60th anniversary of that
institution.

1 ,6 9 6 ,6 3 5 .2 3
$ 3 6 ,8 0 0 ,5 4 6 .4 6

Hom e

w h ic h

Loan

a re

th e

Bank
jo in t

O b lig a t io n s
and

is s u e d

se ve ra l

b y th e

o b lig a t io n s

F e d e ra l
of

th e

Hom e
e le v e n

IOWA BANKS WANTED
Wanted to Buy: C ontrolling interest
in Iowa Banks. A ll inquiries w ill be
treated w ith strictest confidence. W rite
G.H.5, the N orthw estern Banker, 527
7th St., Des Moines, Iowa.

89

Iowa News

C O N V E N T IO N S

"HIDDEN"
COLLATERAL

July 7-19, Agricultural Credit School,
Ames, Iowa State College.
September 26-28, Assn, of Bank
Women, Claridge Hotel, Atlantic
City, N. J.
September 28-October 1, A.B.A., 73rd
Annual Convention, Atlantic City,
New Jersey.
October 6-8, 61st Annual Convention,
Iowa
State Association,
Des
Moines, Hotel Fort Des Moines.
October 6-9, Annual Convention, Fi­
nancial Advertisers Assn., New
York City, Hotel Waldorf.
October 22-25, National Assn. Bank
Auditors and Comptrollers, Balti­
more, Md.
November 6-7, A.B.A. Mid-Continent
Trust Conference, Chicago, Drake
Hotel.
November 10-11, Annual Convention,
Nebraska Bankers Association,
Omaha, Hotel Paxton.

that Field Warehousing
brings to LIGHT . . .
is available inventory of raw ma­
terial or finished goods, on which
the William H. Banks Organization issues its field warehouse
receipts.
These receipts may be used as collateral for a satisfactory
loan, while inventory remains stored on the premises of the
borrower, to be released as needed. The entire procedure is
fast, simple and economical. Investigate today.

WILLIAM H. BANKS WAREHOUSES, INC.
G e n e r a l of f i c es :

209 S. LA SALLE STREET
CHICAGO, ILLINOIS
Telephones: State 0204-0205

IN D E X OF

F

A D V E R T IS E R S
JULY. 1947
A
A llie d M u tu a l C a s u a lty C o m p a n y ............
A lly n , A . C. and C o m p a n y ...........................
A m e r ic a n E x p r e s s C o m p a n y .........................
A m e r ic a n N a tio n a l B a n k — St. J o se p h . . .
A m e r ic a n N a tio n a l B a n k an d T r u s t C o ..
A m e r ic a n T r u s t an d S a v in g s B a n k —
D u b u q u e ................................................................

51
47
50
67
56

B a n k o f A m e r i c a ................................................... 48
B a n k e r s T r u s t C o m p a n y — D e s M o i n e s .. 91
B a n k ers T ru st Com pany— N ew Y o r k . ..
4
B a n k s, W ill ia m H ., W a r e h o u s e s , I n c . .. 89
B u c k h a m , H . B. and C o m p a n y , In c ......... 78
B u r r o u g h s A d d in g M a c h in e C o m p a n y . 32-33

36
8
80
18
84
6
40
85
35
70
66
67
9
69
85
7

1)
D a v e n p o r t, F . E . an d C o m p a n y ............ 68-83
D e L u x e C h eck P rin te rs, In c .......................... 38
D es M oin e s B u ild in g -L o a n & S a v in g s
A s s o c ia tio n ........................................................... 83
D o w n e y , C. L ., C o m p a n y ................................ 66
D r o v e r s N a tio n a l B a n k ..................................... 83


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

88
82
41
68
55
65
64
76
30

G
G u a r a n ty T r u s t C o m p a n y ................................

43

II

87

11

C
C a lifo r n ia B a n k ...................................................
C e n tra l H a n o v e r B a n k and T r u s t C o ...
C e n tr a l N a tio n a l B a n k in C h ic a g o ..........
C e n tra l N a tio n a l B a n k and T r u s t C o m ­
p a n y — D e s M o in e s ..........................................
C e n tra l S ta te s M u tu a l In su ra n c e
A s s o c ia tio n ...........................................................
C h ase N a tio n a l B a n k ...............................
C h e m ic a l B a n k an d T r u s t C o m p a n y . . . .
C ity N a tio n a l B a n k — C lin t o n .........................
C ity N a tio n a l B a n k and T r u s t C o m p a n y
— C h ic a g o .............................................................
C ity N a tio n a l B a n k and T r u s t C o m p a n y
— K a n s a s C ity ...................................................
C o m m e rc e T r u s t C o m p a n y ..............................
C o n tin e n ta l B a n k and T r u s t C o m p a n y .
C o n tin e n ta l Illin o is N a tio n a l B a n k and
T r u s t C o m p a n y .................................................
C o n tin e n ta l N a tio n a l B a n k — L i n c o l n ...
C o s te llo , M . B., and C o m p a n y ....................
C r o c k e r F ir s t N a tio n a l B a n k o f San
F r a n c i s c o ...............................................................

F e d e r a l H o m e L o a n B a n k — D e s M o in e s .
F ir s t N a tio n a l B a n k — C ed ar F a l l s ..........
F ir s t N a tio n a l B a n k — C h ic a g o ....................
F ir s t N a tio n a l B a n k — L i n c o l n . . . .............
F ir s t N a tio n a l B a n k — M i n n e a p o l i s . . . . .
F ir s t N a tio n a l B a n k — O m a h a .....................
F ir s t N a tio n a l B a n k — St. J o s e p h ...............
F ir s t N a tio n a l B a n k — S io u x C i t y ............
F ir s t W is c o n s in N a tio n a l B a n k .................

H a ls e y S tu a rt an d C o m p a n y , In c ..............
H a m m e r m ill P ap e r C o m p a n y ......................
H a r r is T r u s t an d S a v in g s B a n k .................
H o ffm a n T a ilo r s ...................................................
H o m e In s u ra n c e C o m p a n y .............................

47
37
11
7S
5

I

In d ep e n d e n t B a n k e rs A s s o c i a t io n ............
In t e r -S ta te N a tio n a l B a n k ..............................
In v e s to r s S y n d i c a t e ............................................
I o w a -D e s M oin e s N a tio n a l B a n k and
T r u s t C o m p a n y .................................................
Io w a L ith o g r a p h in g C o m p a n y ....................
Io w a S ta te B a n k — D e s M o in e s ....................
Io w a S ta te B a n k and T r u s t C o m p a n y —
I o w a C ity . . . ........................................................
I r v in g T r u s t C o m p a n y .......................................

and

C o m p a n y ..................................

«b
87
2
54
56
42

N
N a tio n a l B a n k o f C o m m e r c e ........................
N a tio n a l C ity B a n k — N e w Y o r k .................
N e w Y o r k T r u s t C o m p a n y ................
N o r th e rn T r u s t C o m p a n y ................................
N o r th w e s t S e c u rity N a tio n a l B a n k . . . .
N o r th w e s te r n N a tio n a l B a n k ......................
N o r th w e s te r n N a tio n a l L ife In su ra n c e
C o m p a n y ...............................................................

69
12
13
71
60
52
51

o
O ffse t P rin te rs , I n c .............................................. 82
O m a h a N a tio n a l B a n k ....................................... 27
P

34
65
46

P u b lic N a tio n a l B a n k and T r u s t C o.........

92
83
88

R o llin s , R ic h a r d R ., In c .................................. 46
R o y a l B a n k o f C a n a d a ..................................... 57

87
39

J

J am ie son

M e r c a n tile C o m m e rce B a n k and T r u s t
C o..................................................................................
M e rc h a n ts M u tu a l B o n d in g C o m p a n y ..
M e rc h a n ts N a tio n a l B a n k .............................
M in n e a p o lis -M o lin e P o w e r Im p le m e n t
C o m p a n y ...............................................................
M in n e s o ta C o m m e rc ia l M e n ’s A s s n .........
M iss is s ip p i V a lle y T r u s t C o m p a n y ..........

71

It

S
St. P a u l T e r m in a l W a r e h o u s e C o.............. 14
S c a rb o r o u g h and C o m p a n y ................4 9 -8 0 -8 5
S e c u rity N a tio n a l B a n k — S io u x C i t y . . . 84

46
T

Iv
K lip to L o o se L e a f C o m p a n y ........................
K o c h B r o t h e r s ........................................................

86
76

T e n sio n E n v e lo p e C o r p o r a tio n ...................
T o y N a tio n a l B a n k ..............................................

81
88

U

Ii
L a M o n te , G e o rg e and S o n ................................
L a w re n c e W a r e h o u s e C o m p a n y .................
L e s s in g A d v e r tis in g C o m p a n y ......................
L iv e S to c k N a tio n a l B a n k — C h ic a g o . . . .
L iv e S to c k N a tio n a l B a n k — O m a h a ..........
L iv e S to c k N a tio n a l B a n k — S io u x C i t y .

3
44
82
31
72
58

U n io n B a n k and T r u s t C o m p a n y ............... 81
U n ite d S ta te s N a tio n a l B a n k ...................... 62
V
V a lle y B a n k and T r u s t C o m p a n y ............

79

W
M
M a n u fa c tu r e r s T r u s t C o m p a n y .................... 10
M a rq u e tte N a tio n a l B a n k ............................. 77

W a lt e r s , C h a rle s E ., C o m p a n y .................
W e s t e r n M u tu a l F ir e In su ra n c e C o.........
W h e e lo c k and C u m m in s ..................................
Norfhwestern

Banker, July,

67
50
46

1947

90

In the

DIRECTOR’S
ROOM
Daffynitions
Diplomacy—the art of letting some­
one else have your way.
Genius—anyone who has ever pro­
duced, directed or authored a motion
picture which made money.
Fan Club—a group of people who
tell an actor he’s not alone in the
way he feels about himself.
Extreme Mental Cruelty—tired of
each other.
Mis-Typed
“Look here, waitress, 1 just found
a needle in my soup.”
Waitress (formerly a stenographer):
“ Merely a typographical error. It
should have been a noodle.”
Bare Facts
The Pullman conductor one night
found a red lantern hanging on one of
the upper berths, so he looked up the
porter and asked, “George, why is that
red lantern hanging there?”
“Well, boss, Rule 26 in the rule book
says that you should always hang a
red lantern when the rear end of the
sleeper is exposed.”
Deeply Affected
A young widow commissioned a
monument dealer to inscribe on her
husband’s monument:
“ My sorrow is more than I can bear.”
Before the monument was erected,
the widow married again, and the deal­
er asked her if she still wanted the
inscription.
“Yes,” she said, “but just add the
word ‘alone.’ ”
First Things First
First Golfer: “ Shall we play another
round of golf next Monday?”
Second Golfer: “Well, I was to be
married on Monday, but I can put it
off till Tuesday.”
No Indoor S])ort
He: Shall we sit in the parlor?
She: No, I’m tired. Let’s play
tennis.
Northwestern

Banker,


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

July,

1947

After Iowa's Floods
First Farmer: “Boy, is this a tough
season. My corn isn’t an inch high
yet.”
Second Farmer: “You’re doing well.
The sparrows have to kneel down to
eat mine!”

Maggie's O.K. Now
Farmer: Be this the Woman’s Ex­
change?
Woman: Yes.
Farmer: Be you the woman?
Woman: Yes.
Farmer: Well, then, I think I’ll keep
Maggie.

Old Buddies
A pink elephant, a green rat and a
polka-dotted snake walked into a cock­
tail bar.
“You’re a little early boys,” said the
bartender, “he ain’t here yet.”

Skimming Along
One milk bottle: Let’s neck.
The other: No, let’s go curdle in the
corner.

Test for Tipplers
The fly and the flea
Flew up the flue.
Said the fly to the flea,
“What shall we do?”
“Let us fly. said the flea;
“Let us flee,” said the fly.
So they fluttered and flew
Through a flaw in the flue.
Bad Guess
Traffic Officer: “As soon as I saw
you coming around the curve. I said
to myself, ‘Forty-five at least!’ ”
Woman Driver: “Well, you’re ’way
off. It’s this hat that makes me look
so old.”
New Deal Philosophy
“Only Americans have mastered the
art of being prosperous though broke.”
Four Time Loser
Mose had applied to the philosophic
white gentleman for a loan. He was
turned down, and as a parting admoni­
tion the gentleman said:
“You are strong and healthy and
work is plentiful. Why don’t you get
a job? Hard work never killed any­
body.”
Mose said, “You sho is wrong about
dat, Boss. I’se lost four wives from
nuffin’ else.”
Slips Don't Count
1st Frosh: Did she blush when her
shoulder strap broke?
2nd Same: I didn’t notice.

Sourcastic
Caller at phone office: These flowers
are for the ’phone girls.
Supervisor: Oh, thank you, sir. You
flatter our service.
Caller: Flatter nothing! I thought
they were dead!
Sacrifice
The Colonel had insisted to his Negro
cook that the Thanksgiving turkey be
a domestic, corn-fed, no wild fowl.
Came the day and the Colonel cut into
a beautiful, done-to-perfection turkey,
frowned, cut again, then sent for Sam.
“Didn’t I tell you I wanted a domes­
tic bird?” he thundered.
“Yas, suh, that’s a domestic, corn-fed
fowl.”
“Well, what about this shot I’m find­
ing?”
Sam shuffled from one foot to the
other. “Dat shot, Colonel, suh, were
meant fo’ me.”
Prescription
A grocer had difficulty with a doctor
who was backward in paying his gro­
cery bill. So the grocer put the matter
into the hands of a collector.
The collector called on the doctor,
who quibbled, and the man gave him
a tongue lashing. When he returned
to the grocer, the man was looking
worried.
“What’s the matter?” asked the gro­
cer; “what’d the doctor say?”
“Well,” replied the collector, “he
said I wasn’t looking well. Then he
examined my tongue, and advised me
to remain indoors for a few weeks.”

*

S in c e th e fo u n d in g o f th is b a n k 30 y e a rs a g o , t h o u ­
sand s o f m e n a n d w o m e n h a v e d is c o v e r e d th a t o u r
se rv ice s

o ffe r

in c r e a s in g ly

g re a te r

a d v a n ta g es— n o t

a lo n e in stren g th o f r e so u rc e s, b u t a lso in e x p e r ie n c e
o f p e r s o n n e l a n d so u n d n e s s o f v ie w p o in t .

W e h ope

th a t m a n y o f o u r d e p a r tm e n ts m a y a id y o u r p r o g r e ss
d u r in g 1947 a n d in th e y e a r s a h ea d .

STATEMENT OF CONDITION
June 3 0 , 1 9 47

STATEMENT OF CONDITION
June 3 0 , 1917

RESOURCES
Other Securities
Furniture and Fixtures
Cash and Exchange

__ $1,310,145.65
86,683.07
10,675.41
.
407,886.49
$1,815,390.62

LIABILITIES
Capital ---------------------------------------- . $1,000,000.00
100,000.00
Surplus ---------------------------------------Undivided Profits ----------------------- ___ 110,629.72
604,760.90
Deposits _________________________
$1,815,390.62

RESOURCES
Loans and Discounts-------------------------------------- $ 1 1 ,3 5 0 ,7 6 4 .7 0
Other Securities -------------------------------------------5 0 9 ,0 0 2 .0 0
Stock in Federal Reserve B ank-------------------6 0 ,0 0 0 .0 0
Real Estate ----------------------------------------------------6 .0 0
Furniture and Fixtures--------------------------------5 8 ,1 4 4 .1 8
U. S. Government B o n d s_$ 3 5 ,7 4 3 ,4 8 1 .5 6
5 2 ,6 3 7 ,7 3 6 .3 5
Cash and Exchange------- 1 6 ,8 9 4 ,2 5 4 .7 9
Customers’ Liability on Letters o f Credit
and Trade Acceptances----------------------------7 ,7 2 0 .0 0
$ 6 4 ,6 2 3 ,3 7 3 .2 3
LIAB ILITIES
Capital (Com m on S to ck )----------------------------- $ 1, 000 , 000.00
1, 000. 000.00
Surplus _______________________________________
1, 000, 000.00
Undivided P r o f i t s -----------------------------------------1, 000, 000.00
Reserve for Contingencies----------------------------4 4 ,5 6 3 .8 2
Other Reserves ---------------------------------------------1 9 4 ,3 2 0 .5 3
Reserve for Taxes and Interest-------------------Deposits
--------------------------------------------------------- 6 0 ,3 7 6 ,7 6 8 .8 8
Bank’ s Liability on Letters o f Credit and
7 ,7 2 0 .0 0
Trade Acceptances ----------------------------------$ 6 4 ,6 2 3 ,3 7 3 .2 3

OTHER OFFICERS

DIRECTORS, 1947
PAUL BEER
President, The Flynn Dairy Co.
THOS. A. B UR CH AM , M .D .
Radiologist
F. W . H UBBELL
Pres., Equitable Life Ins. Co. of Iowa
E. J. L IN D H A R D T
President, National By-Products, Inc.
S. F. M cG IN N
V. P ., T angney-McGinn Hotels
E. T. M E R E D IT H , JR.
V. P ., Meredith Publishing Co.
SH IR LEY PERCIVAL
Pres., Green Colonial Furnace Co.

RUSSELL REEL
President, Yellow Cab Co.
R. R. ROLLINS
Real Estate and Investments
J. F. ROSEN FIELD
Attorney
JOHN D. SHULER
President, Shuler Coal Co.
B. F. K A U F F M A N
Chairman of the Board
J. W . H UBBELL
President
S. C. PIDGEON
Executive Vice President

C. W . M ESM ER
Vice President
F. C. ATK IN S
Vice Pres, and Cashier
L. N E V IN LEE
Vice President
F. S. LOCKW OOD
Vice Pres, and Trust Officer
W M . ELLISON
Assistant Vice President

G. A. M O EC K L Y
Assistant Vice President
Mgr. Personal Loan Dept.
A. F. ERICKSON
Assistant Cashier
J. B. M O N A H A N
Assistant Cashier
S. G. B ARNARD
Assistant Secretary

M em ber Federal R eserve System
M em ber Federal D eposit Insurance Corp.

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BANKERS TRUST COMPANY

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

6th and Locust

Des Moines

M

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SERVICES INCLUDE:
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serves.
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curities.

A S tron g , D e p e n d a b le
Correspondent Connection

*

Building with Des Moines
and Iowa . . . since 1875

<

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on government and
municipal bonds.

*

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partment services.
• Assistance with op­
erations problems.


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& TRUST C O M P A N Y
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