The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
JU L Y . 1947 State Banking Conventions — Pages 22, 24, 28 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 $325,435,424.66 J. F. Sh u m a n .. W a lte r H . S u lliv an *The pledge of securities is required by statute to secure Trust Deposits and to secure deposits of the United States, any State, or any political sub-division thereof. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Member Federal Deposit Insurance Corporation Northwestern Banker, July, 1947 8 CENTRAL BANK AND TRUST N EW TRUSTEES HANOVER COMPANY YORK S tatem en t o f C o n d itio n , June 30 , 1947 G EO R G E W . D A V IS O N Honorary Chairman ASSETS L O U IS S. CATES President, Phelps Dodge Corporation C O L B Y M . CHESTER Honorary Chairman General Poods Corporation J O H N B. C L A R K President, The Clark Thread Co. J A R V IS C R O M W E L L President William Iselin & Company, Inc. 386 , 393 , 239.86 Cash and Due from B a n k s ...................................$ 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 T he m akers of Hammermill Bond and Hammermill Safety now offer to American business the newest accom plishment of their know-how and resources. . . Hammermill Cockletone Bond. We invite you to compare it with any other fine quality letterhead paper. Note the unmistakable quality appearance and "heavier” feel to add impressiveness and dignity to your business messages. Hear the crisp, crackly snap that proclaims the best in bond paper quality. Judge its quality for yourself. Then consider it as a representative to reflect the character and prestige of your hank. (Available also are matching envelopes in appropriate sizes.) w tvéerm a r^ G x c À j& it o r L Q y MINI® S E N D FO It T H IS FREE SA M PLE BO O K . . . Shows samples of paper in a variety of weights. • Compare H a m m e r m i l l C o c k l e t o n e B o n d with other quality papers. Make any test you like ! • Even i f you 're not ready to order new letterheads right now, send the coupon today. K eep the sample book in you r file to remind you . 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, https://fraser.stlouisfed.org 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.” https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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, https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 Northwestern Banker, July, https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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, https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 $16.86 to the employes’ delinquent county tax account. The remainder was ordered turned over to the county judge to apply against the missing court funds. The instructions to the treasurer were set out in a resolution passed by the county commissioners. The treasurer, however, declined to follow the order and returned the check to the commissioners. In the same cover was a letter setting out a belief by the treasurer that he was without au thority to apply any part of the money https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to the alleged defaulter’s tax account, without first having the endorsement of the missing man. A member of the board then recom mended that separate checks be drawn in favor of the judge and the treas urer. This, in turn, raised another objection, the county clerk doubting the legality of the board issuing such an order. By this time the controversy was on full tilt and ended only when the original check was ordered held up, pending an investigation. At last re port no agreement had been reached. 69 Lincoln bankers are steering clear of the controversy, not being well enough acquainted with what the county board can do in the premises. Anyway, the delinquent tax-account has not been paid, and the residue of the salary due the alleged defaulter has not been credited to the shortage. LEGAL QUESTIONS (Continued from page 21) ing to use it for an illegal gambling purpose, and that the plaintiff knew that fact, if the plaintiff did not other wise participate in or further the STATEMENT OF CONDITION June 30, 1947 RESOURCES Loans and Discounts.............$ 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. https://fraser.stlouisfed.org 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, https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. ■ w % "fff * FP K - - !■ 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 https://fraser.stlouisfed.org 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, https://fraser.stlouisfed.org 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. https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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 https://fraser.stlouisfed.org 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. Hh.'i % , 'in Jyuin luti# tt tmi BANKERS TRUST COMPANY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6th and Locust Des Moines M CORRESPONDENT SERVICES INCLUDE: • Depository for r e serves. • Co -ope r a t i o n i n meeting the credit needs of your custo mers. • Fast transit service for the collection of checks and drafts. • The transfer of funds. • Safe-keeping of se curities. A S tron g , D e p e n d a b le Correspondent Connection * Building with Des Moines and Iowa . . . since 1875 < • Credit information. • Investment service on government and municipal bonds. * • Complete Trust De partment services. • Assistance with op erations problems. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IOWA-DES MOINES N A TIO N A L B A N K & TRUST C O M P A N Y MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION