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NORTHWESTERN B Ä N K E R ■ . ...'"i i■ 1CON VEbITI O N N U M B E R 1II 11 ■ n m i ■ ■I g I VJ ms ■ HUI ■ ! mm agg m I ■ I l JUNE 1922 :# sä T " ‘ S ÎXÿg B i E& v ¡ ■ g g & ï ■ ■ i i j a i s¡i¡|| sa i W m B _ m $m I I fm : _ : M i L MOINES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis HCRIÎÏ.RT THE 2 N ORTH W ESTERN BANKER First Joint Stock Land Bank of Chicago 33-YEAR FARM LOANS W E ARE EQUIPPED to furnish country bankers a regular, orderly place of discount for their farm mortgages. TH REE M ILLIO N DOLLARS OF CAPITAL AND RESERVES enable us to give One Hundred Per Cent Service to Country Bankers who send us Loans. T H IR T Y M ILLIO N DOLLARS OF ASSETS built up over a period of five years is assurance that we know the needs of the country banker and how to meet them. REASONABLE COMMISSIONS will be paid on all loans sent us. PROMPT APPRAISALS— Immediate appraisals and reports on all applications submitted. NO COMMISSIONS may be charged on loans made by a joint stock land bank. PERM ANENT FIN AN CIAL RELIEF can be given to your community only by bringing in a large amount of outside funds that can be paid off over a long period of years. AM O R TIZATIO N LOANS have come to stay. LOANS M AD E BY THIS BANK are loans made on a 6% interest basis maturing over a period of thirty-three years. W E PAY PRIOR LIENS with our funds— no delay completing loans. W E ARE NOT A FFILIA TED W IT H A N Y COMMERCIAL BANK, Thus every banker submitting loans to us is accorded the same treatment. First Joint Stock Land Bank of Chicago CAPITAL AND RESERVES . $ 3,000,000.00 ASSETS E X C E E D .................... 30,000,000.00 OFFICERS Guy Huston, President O. F. Schee, Vice President Ray E. Pickrel, Vice President J. E. Huston, Secretary CHICAGO OFFICES— Continental-Commercial Bank Building DES MOINES OFFICES— Valley National Bank Building CEDAR RAPIDS OFFICES— Perpetual Building SIOUX CITY OFFICES— Iowa Building R eaders w ill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 One o f the most ancient metals known to man, copper, is produced in large vol ume in the Northwest. “ The red metal” has played an important part in the march o f civilization, and today, in the vast complexity o f modern life, its use is more vital to mankind than ever before. Telegraphic and radio com munication, the transmission o f electrical energy for light and power, the construc tion o f many types o f machinery, depend upon the use o f copper. If we were suddenly deprived o f this metal our methods o f living would be turned back by centuries. It is a source o f gratification to realize that the Northwest is an important pro ducer o f copper. If our Northwestern states were a sep arate nation with government, laws and tariff boundaries o f its own, it would be known as a great exporting nation. And copper would be a leading item of export. Twenty five per cent o f the normal cop per production o f the U n ite d States comes from the mines o f Michigan and Montana. In 1920, the latest year for which figures have been compiled, the smelter output o f copper in Michigan was 153,483,952 pounds; in Montana, 177,743,747 pounds. Our great Northwest is not a separate nation, and never will be, but it is a region with a well rounded production o f basic materials. The Northwestern National Bank is vitally concerned in the welfare o f all the in dustries o f its territory. For fifty years it has aided and encouraged the sound development o f the Northwest. Today, with more complete facilities than ever before, it is looking toward the future with a desire for a continued and en larged sphere o f usefulness. Resources $56,000,000 Minneapolis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 4 N ORTH W ESTERN N o rth w e ste rn N ational Life Insurance Company June, 1922 BANKER D IR E C T O R S F . A . C H A M B E R L A I N , C h a irm a n F ir s t N a tio n a l R ank E. \V. D E C K E R , Bank P re s. N o r th w e s te r n N a tio n a l C. T . J A F F R A Y , P re s. F ir s t N a tio n a l B a n k MINNEAPOLIS, MINNESOTA T . B . J A N N E Y , P re s . J a n n e y , S em p le , H ill & Co. E. JOHN T. BAXTER, President A PU R ELY MUTUAL, OLD-LINE, W E S T E R N L. C A R P E N TE R , C la rk e Co. P re s . S h e v lin -C a r p e n te r - II. F . N E L S O N , P re s . H e n n e p in P a p e r Co. C O M P A N Y A . A . C R A N E , V ie e -P r e s . B a n k e r s I n v e s tm e n t Co. J. A . L A T T A , V ie e -P r e s . N o r th w e s te r n N a tio n a l Bank J O H N T . B A X T E R , P res. N o r th w e s te r n N a t’ l L ife In s . Co. Your Interests are Ours The Iowa Trust and Savings Bank has kept in the foreground two prime fac tors of banking— S A F E T Y and S E R V ICE. As a Service bank it has won real dis tinction. You and your institution can well take advantage of our Service. Here is a bank that will give consider ate attention to the little things that mean much to you. W e know we can serve you to your profit and satisfaction. OFFICERS A . O. H A U G E P r e s id e n t JO H N A. B EN SO N V ic e P r e s id e n t C. B . H E X T E L L V ic e P r e s id e n t L. M. B A R L O W C a s h ie r C L A R E N C E M IC K E L S O N A s s is t a n t C a s h ie r G E O . D. JO R G E N S E N A s s is t a n t C a s h ie r G E O . J. H B G G E N A s s is t a n t C a s h ie r A SERVICE B A N K This bank’ s co-operation is based on the fundamen tal principle that the success of our patrons is directly linked with our own progress. W e provide a well-rounded service— and are sin cerely anxious to co-operate with you. Iowa Trust & Savings Bank DES MOINES DES MOINES G. G. T H O M A S President R eaders will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 T HE 1856 N O R T H W E S T E RN BANKE R 5 The Evolution of the Leavitt & Johnson National Bank Founded by John H. Leavitt at Waterloo, Iowa, in the Pioneer Days of ’56 Share in the experience gained during this sixty-six years banking by becoming a correspondent of Waterloo's Oldest Bank 1877 IRA RODAM AR President C. E. PICKETT Vice-President J. O. TRUM BAUER Vice-President FRED H. W R A Y Cashier R. E. M ILLER Assistant Cashier R. ROUSE Assistant Cashier 1914 1922 R eaders will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 6 N OR TH W E STE R N BANKER June, 1922 Bringing a Loan into “Focus” m ;Ar‘ Have you ever reviewed a loan application with details blurred, cloudy, “ out of focus’ "? m To bring such a proposition into focus— to make all the details stand out clear, sharp, exact— is the mission of a Lloyd-Thomas appraisal. m Disclosing the facts scientifically, accurately, Lloyd-Thomas appraisals focus your attention upon both the weak and the strong points in a proposition. Our appraisals frequently re verse previous opinions regarding the bor rower’ s property. •Tv' vjAr* Lloyd-Thomas service is not advisory— but it furnishes authentic, disinterested facts, upon which maximum security can be attained in de termining credit. m Combining accuracy with speed, the LloydThomas Company has builded a large and flexi ble organization of specialists, to handle this most exacting work quickly and scientifically. ‘j When extending credit, eliminate the hazard of conjecture— insist upon Lloyd-Thomas facts.Tlie cost is low. Th e lloyd-lhomas Co. R EC O G N IZED A U T H O R IT IE S ON PH Y SIC A L V A LU E S 1128 Wilson Ave., Chicago Cincinnati St. Louis Cleveland * Milwaukee Des Moines Detroit 75 Fulton St., New York Pittsburgh Minneapolis Oklahoma City Indianapolis Memphis» Kansas City J i& i A g g K A I g E R a V y /B W O I g fig g R a R ea d ers will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m June, 1922 THE N OR TH W E STE R N BANKER 7 Corn Exchange National Bank OF CH IC AG O D IR E C T O R S O F F IC E R S W A T SO N F. B L A IR E R N E S T A. H A M IL L C h a ir m a n o f t h e B o a r d C H A U N C E Y B. B O R L A N D M a n a g in g ' B o r la n d P r o p e r t ie s E D W A R D B. B U T L E R C h a ir m a n B o a r d o f D i r e c t o r s B ros. E D M U N D D. H U L B E R T P r e s id e n t C H A R L E S L. H U T C H IN S O N V ic e P r e s id e n t O W E N T. R E E V E S , V ic e P r e s id e n t B E N J A M IN C A R P E N T E R P r e s id e n t G eo. B. C a r p e n te r & JR. / C L Y D E M. C A R R P r e s id e n t J o se p h T. R y e r s o n & C o. S on H E N R Y P. C R O W E L L P r e s id e n t Q u a k e r O a ts C o. J. E D W A R D M A A S S V ic e P r e s id e n t E R N E S T A . H A M IL L C h a ir m a n Of t h e B o a r d N O R M A N J. F O R D V ic e P r e s id e n t E D M U N D D. H U L B E R T P r e s id e n t C H A R L E S H. H U LB U R D P r e s id e n t E lg in N a tio n a l W a t c h C o m pany C H A R L E S L. H U T C H IN S O N V ic e P r e s id e n t J O H N J. M I T C H E L L C h a ir m a n o f B o a r d I l l i n o i s T r u s t & S a v in g s B a n k M A R T IN A . R Y E R S O N J. H A R R Y S E L Z P r e s i d e n t S e lz , S c h w a b & C o m p a n y J A M E S G. W A K E F I E L D V ic e P r e s id e n t EDW ARD B u t le r F. SC H O E N E C K C a s h ie r L E W IS E. G A R Y A s s is t a n t C a s h ie r JAM ES A. W A L K E R A s s is t a n t C a s h ie r CHARLES NOVAK A s s is t a n t C a s h ie r R O B E R T J. T H O R N E C H A R LE S H. W A C K E R P r e s id e n t C h ic a g o H e ig h ts L a n d A s s o c ia tio n H U G H J. S I N C L A I R A s s is t a n t C a s h ie r Report of Condition on March 10th, 1922 RESOURCES T im e Loans ....................... .$59,490,536.42 Demand Loans ................ 22,984,278.68 U nited S tates Bonds and C e rtificates of Indebtedness ..................... ................. O th e r Bonds .................................................. Illin o is M erchan ts Bank Bldg.......... ....... Stock in Federal Reserve B a n k ............ Custom ers' L ia b ility on L e tte rs of C re d it ........................................................... Custom ers’ L ia b ility on Acceptances.... Cash on Hand and Checks fo r C learing House ...$4,690,105.14 Due from Federal Reserve Bank ..................................... 9,671,347.45 Due From O th e r B anks....15,977,626.04 L IA B IL IT IE S C apital .................................................................. $ 5,000,000.00 $82,474,815.10 1,622,692.36 2,555,563.01 634,172.13 450,000.00 461,292.73 569,158.72 Surplus .................................................................. 10,000,000.00 Undivided Profits ........................... Dividends Unpaid ........................................... 1,854,900.79 Reserved fo r T a x e s .............. 118.00 177,842.88 U nearned In te re s t ..................... ...................... 620,382.51 L ia b ility on L etters of C re d it................ L ia b ility on Acceptances................................ 461,292.73 583 569.29 Deposits: Banks and Ind ividu al B ankers....$35,445,248.73 ........................ 64,963,417.75 100,408,666.48 30,339,078.63 $119,106,772.68 $119,106,772.68 R ea d ers will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 8 N ORTH W ESTERN BANKER June, 1922 POLITICAL ADVERTISING Vote foraWinner Your vote for A insw orth is not so licited merely because of his war rec ord, but because of bis record a,s a citizen and a successful business man, bis unquestioned ability to serve the people of Iowa efficiently, thoroughly and honestly in public office. The same ability that made Col. Ains worth a success as a business execu tive and a soldier assures bis success ful and satisfactory administration of the office of COL. L. W. AINSWORTH Candidate for State Treasurer TREASURER OF STATE Business and professional men and women, former service men— all those who have the best interest of their state at heart— join in indorsing him for the office he seeks. Service Men Who Endorse L . W. Ainsworth for Treasurer of State Col. H. H. Polk, Col. E. S. Olmstead, C. A. Watrous, E. E. Butler, R. S. Butler, E. H. Welch, B. A. Gooch, Don Marshall, Rex D. Brown, Vergil E. Kepford, C. D. Rigdon, Geo. E. Ketterer, Chas. H. Grahl, Earl L. Davis, Casper Schenk, H. O. Bennick, Leo Marcovous, LaVere Braucht, Geo. Yates, Gregory Brunk, Rex Fowler, Hal W. Minton, Roland S. Conklin, Dan C. Newquist, John W. Ball, H. Williams, Bruce Smart, Jr., R. C. Kehm, Dr. L. V. Feike, Paul Hewitt, Francis Robinson, Dr. C. E. Ruth, Dr. V. A. Ruth, Adjt. Gen. Guy Logan, Gen. Matt Tinley, Wm. G. Howe. R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE NOR T H W E ST E R N BA N K E R —and the car arrived the next morning The B— Trust Company in southern Nebraska had advertised extensively the opening of its new bank ing rooms for a certain day. Its president mentioned to one of our officers that the car containing the floor ing was lost and it seemed impossible to meet the opening date. W e at once threw our efforts into the matter. Within two hours the car was located, telegrams were sent, railroad executives gave orders. The flooring arrived next morning. W e felt a bit of pride when the new banking rooms of the B— Trust Company opened on the morning advertised. O rga n ized 1889 «m n n sr, M em b er F ed era l R eserv e S y stem The Northern Trust Company Capital and Surplus $5,000,000.00 CHICAGO R ea d ers will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9 10 THE N OR TH W E STE R N BANKER June, 1922 Making Your Work M ore Pleasant and Profitable SIMPLE creed actuates the personnel of the Des Moines Life and Annuity Company. It is that this Company must do nothing not in keep" ing with its reputation as “ The Company of Co-opera tion.” Every department is under the direction of men who know, and each department co-operates and co-ordi nates to the end that the work of our agents shall be more pleasant and profitable. Would you like to know more about us—the things we are doing for others—the things we can do for you? A few lines from you will bring our prompt reply. A. L. H A R T, President Des Moines Life and Annuity Co. iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiüiiiiiiiiii REGISTER & TRIBUNE BUILDING DES MOINES, IOWA ■ lllllllllllillllllllllllllllll1 limili R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O R TH W E STE R N BANKER A Commercial Bank Ever since The Merchants Loan and Trust Company Bank of Chicago was founded, more than sixty years ago, the big end of its business has been com mercial banking. From time to time, new departments have been added, extending and widening the Bank’s service, but it has always remained first of all a commercial bank, and commercial banking its principal activity. Today this bank is recognized as one of the leading trust companies of the United States in volume of commercial business and holdings of bank deposits. B O A R D OF D IR E C T O R S CLAREN CE A. B U R LE Y ROBERT W . CAM PBELL M A R S H A L L F IE L D E R N E S T A . H A M IL L H ALE HOLDEN M A R V IN H U G H IT T EDM U N D D. H U L B E R T CHAUNCEY KEEP C Y R U S H . M cC O R M IC K J O H N J. M I T C H E L L J O H N S. R U N N E L L S E D W A R D L. R Y E R S O N J O H N G. S H E D D O R S O N S M IT H JA M E S P. S O P E R A LB E R T A. SPRAGUE - A t t o r n e y a n d C a p it a lis t K n a p p & C a m p b e ll M a r s h a ll F ie ld , G lo re , W a r d & C o. C h a ir m a n . C o rn E x c h a n g e N a tio n a l B a n k P re s id e n t, C., B . & Q. R . R . C o. C h a ir m a n , C. & N . W . R a i l w a y C o. P r e s id e n t T h e M erch a n ts L o a n & T ru st C om p a n y I llin o is T r u s t & S a v in g s B a n k T h e C o rn E x c h a n g e N a tio n a l B a n k T ru ste e , M a r s h a ll F ie ld E s t a te C h a ir m a n , I n t e r n a t io n a l H a r v e s t e r C o m p a n y C h a ir m a n T h e M erch a n ts L o a n & T ru st C om p a n y I llin o is T r u s t & S a v in g s B a n k C h a ir m a n , P u llm a n C o m p a n y C h a ir m a n , J 'osep h T . R y e r s o n & S on P re s id e n t, M a r s h a ll F ie ld & C o m p a n y C h a ir m a n o f A d v is o r y C o m m itte e P re s id e n t, S o p e r L u m b e r C o m p a n y C h a ir m a n , S p r a g u e W a r n e r & C o. O F F IC E R S J O H N J. M T T C H E L L , C h a ir m a n o f B o a r d E D M U N D D. H U L B E R T P r e s id e n t F R A N K G. N E L S O N V .- P r e s i d e n t L E O N L. L O E H R J O H N E . B L U N T , J r. V . - P r e s i d e n t S e c ’ y a n d T r u s t O ffic e r C. E . E S T E S V .- P r e s i d e n t A . L E O N A R D JOH N SO N F. W . TH O M PSO N V .- P r e s i d e n t A s s is ta n t S e c r e ta r y H . G. P . D E A N S V .- P r e s i d e n t G. F . H A R D I E M g r. B o n d D ep t. J O H N J. G E D D E S C a s h ie r C. C. A D A M S F . E . L O O M IS A s s t. C a s h ie r A s s t. M g r. B o n d D ep t. A. F. P IT H E R A s s t. C a s h ie r H . J. S A M P S O N W . A . H U T C H IS O N A s s t. C a s h ie r A sst. M g r. F o r e ig n D ep t. Banks and bankers seeking additional facilities or contemplating a banking change are invited to in vestigate the special services offered by this Chicago banking institution. DEPARTM ENTS C O M M E R C IA L — S A V IN G S — T R U S T — R O N D “ Identified with Chicago's Progress Since 185 7” — FARM L O A N — F O R E IG N EXCHANGE— Capital and Surplus— Fifteen Million Dollars R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T l W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 THE 12 N ORTH W ESTERN June, BANKER A C om plete Banking and Trust Service XXTITH enlarged facilities and DIRECTORS C h e l l i s A . A u s t i n ......................................... P r e s id e n t E l l io t t A v e r e t t ....................V ic e -P r e s id e n t, U n ite d C ig a r S to r e s C o. E d w a r d J. B a r b e r .......................... P r e s id e n t, B a r b e r S te a m s h ip L in e s H o w a r d B a y n e ................... .. .V i c e - P r e s i d e n t , C o lu m b ia T r u s t Co. S. G. B a y n e ......................................................... C h a irm a n H e n r y S. B o w e r s ...............G o ld m a n , S a c h s & C o. H a r r y B r o n n e r ................................B la ir & C o., In c. H . D . C a m p b e l l ......................................V ic e -P r e s id e n t J. S. C o f f i n ..........................................C h a irm a n , F r a n k lin R a i l w a y S u p p ly C o., I n c . D e l o s W . C o o k e ..........A s s o c i a t e D ir e c to r , T h e C u n a rd S te a m sh ip C o., L td . E d w a r d J, C o r n i s h .P r e s id e n t, N a tio n a l L e a d C o. L o u is N . D e V a u s n e y ........................... V ic e -P r e s id e n t C h a r l e s G. D u B o i s ........................P r e s id e n t, W e s t e r n E le c t r ic C o. F r e d e r ic k F . F i t z p a t r i c k ......... P r e s id e n t, R a i l w a y S teel S p r in g C o. H e n r y C. F o l g e r .............................P r e s id e n t, S ta n d a rd O il C o., o f N e w Y o r k B e n n e t t L . G i l l .....................................T e rr e ll, T e x a s E d w a r d H . R . G r e e n ..................... P r e s id e n t, T e x a s M id la n d R a ilr o a d A . R . H o r r ............ F in a n c ia l V ic e -P r e s id e n t E q u it a b le L ife A s s u r a n c e S o c ie ty H e r b e r t P . H o w e l l ..............V ic e -P r e s id e n t , N a tio n a l B a n k o f C o m m e r c e E lgood C. L u f k i n . . . . C h a irm a n , T h e T e x a s C o. C h a r l e s D . M a k e p e a c e .....................V ic e -P r e s id e n t P e t e r M c D o n n e l l ................. G e n era l A g e n t , T r a n s a t la n t ic a I t a lia n a S. S. C o. J o h n M c H u g h ................................... P r e s id e n t, M e c h a n ic s & M e ta ls N a t io n a l B a n k T h e o d o r e F . M e r s e l e s .................. P r e s id e n t, M o n tg o m e r y W a r d & Co. A l b e r t G. M i l b a n k ...................... M a s te n & N ic h o ls S a m u e l H . M i l l e r .............. V ic e -P r e s id e n t, C h a s e N a t io n a l B a n k W i l l i a m E . P a i n e .........................................N e w Y o r k J o h n J . R a s k o b .......................V ic e -P r e s id e n t, E . I. D u P o n t de N e m o u rs & C o. C h a r l e s S. S a r g e n t , J r .. .K id d e r , P e a b o d y & C o. J o s e p h S e e p ..........C h a irm a n , S o u th P e n n O il C o. J o s e p h B . T e r b e l l ............................P r e s id e n t, A m e r ic a n B r a k e S h oe & F o u n d r y C o. C. C. T h o m p s o n ............................................. N e w Y o r k J. S p e n c e r W e e d ....................V ic e -P r e s id e n t, G r e a t A t la n t ic & P a c i fi c T e a C o. H e n r y W h i t o n ............................. . .P r e s id e n t, U n io n S u lp h u r C o m p a n y * * resources amounting to more than one hundred million dollars, The Seaboard National Bank, now maintaining three offices at conven ient locations, two downtown and one uptown, is in a position to give its customers and friends a banking and trust service of larger scope than heretofore. Visit or write one of the Sea board Banks and our officers will be glad of the opportunity to ex plain the special features o f this complete financial service. You will find sound banking along with a pleasant way of being personally interested in accounts, small as well as large. The Seaboard National Bank OF THE C IT Y OF N EW Y O R K Main Office: Broad and Beaver Streets Mercantile Branch 115 Broadway Uptown Branch 20 E. 45th Street Capital, Surplus and Profits over 10 M illion Dollars R eaders Will c o n fe r a fa v o r b y m entioning T H E N O R T H W E S T E R N B A N K E R , w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1922 June, THE 1922 N OR TH W E STE R N BANKER |I|J PON the foundation of more than half a century’s experience and growth is based the present organization of the First N ational Bank of Chicago and the First T ru st and Savings Bank This experience has developed a highly spec ialized service in both banks, applicable to the needs of banks and bankers. Calls and correspondence are invited relative to the facilities afforded for the transaction of domestic and international financial business of every conservative character. Combined Resources Exceed $300,000,000.00 JAM ES B. F O R G A N , Chairman Board of Directors of Both Banks F R A N K 0 . W E T M O R E , President First National Bank of Chicago M E L V IN A . T R A Y L O R , President First Trust and Savings Bank R ea d ers will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13 NORTHW ESTERN t BANKER t C L IF F O R D D E P U Y Publisher G . A . S N ID E R D O NALD H. CLARK Editor RALPH W . M O O R H EAD Associate Editor Manager C o p y r ig h t e d 1922 b y N o r t h w e s t e r n B a n k e r . Twenty-seventh Year CO N TEN TS Page Editorial Comment..................... By Clifford DePuy 16 Frontispiece...................................John H. Puelicher 18 Is Your Country Bank Director Merely a Figure head?....................................By Gilbert Semingson 19 Cartoon Comment on Topics of the Day.................. 20 What Is Your Idea of the Standards of a Good Banker?..............................By Geo. T. McCandless 21 Four Thousand School Children Become Bank’s Boosters Through Contest....... By A. J. Wentzel 22 Bankers Must Fight Menace of Radical Propa ganda........ ..................—By Thomas B. McAdams 23 Exhibit Stimulates Interest in Boys and Girls Dairy Calf Club............. .................. By E. C. Ward 24 Commercial Paper— Why and How the Bank Should Buy It..........................By George L. Rowe 25 The Basis for Present Iowa Law Taxing Banks and Monies and Credits..... ......By K. J. Johnson 26 Iowa Group Meetings Snap Shots.............................. ............................................ - ........By Clifford DePuy 27 Europe is Getting Back on Her Feet Financially and Economically......................By Leslie Hanson 28 Most Frequent Tax Errors of Bankers and How to Correct Them--------- By H. Archibald Harris 29 U. S'. Radio Market News Service Is of Great Interest to Country Bankers.................................... .......................................... By Caroline B. Sherman 30 Bankers Study Business Principles.......................... —-..............—...................By Benjamin F. Anderson 31 The Banker Can Use Motion Pictures to Increase Profits....... ................ By Watterson R. Rothacker 32 How the Banker Must Sell Himself........................ ................................................-By John H. Puelicher 33 Bird House Contest Attracts Youngsters and Grownups...... .................By J. Clemens Erlander 34 Should the Young Prospective Banker Go to College?.......... .......By Charles Franklin Thwing 35 Business Coming of Age......... By Dr. Frank Crane 36 Country Bank Cost Accounting....By A. P. Howard 37 FOR JUNE Number 418 Page Human Interest Bank Advertisements Secure At tention and Bring Results.... .................................. ...................................................By John W . Gamble 38 The Old Time Banker Never Solicited an Ac count............................................ By F. P. Schreiber 39 How Dartmouth College Trains Future Bankers and Business Men..........................By W . R. Gray 40 New Chicago-Omaha Short Line Highway Is His toric Route....... ....................By Robert N. Carson “Listening In” on Market Reports and Concerts Is New Bank Activity....... By Donald H. Clark What Constitutes Final Payment of a Bank Check?............................By the Legal Department Personal Paragraphs.......... ....................... ................... Iowa Convention Section........ ............................. ........ Iowa Bank News........................................................... Storm Lake, Favored by Indians 70 Years Ago, Is Iowa’s “Beauty Spot”............................................ ............................................By Louis W . Mittendorff South Dakota Bank News.................................. .......... Nebraska Bank News....____ ______ ____ ____ ____ _ Minnesota Bank News........ ............................ North Dakota Bank News...... .................................. Montana Bank News....... ..................... ......................... Bank Equipment Section.................... For Bankers and Their Wants.................................... In the Directors’ Room..... ......................... ................. Insurance Section....... ................................................... Iowa Farm Mortgage Section.................... Bond Section.................................................................. Advantages of Bonds as Country Bank Invest ments........................................By Arthur C. Tuohy Canadian Department...... ................................. What is the Boy Power of Your Bank?.................... _____ ______ _____ ___ ______By R. Fullerton Place Index to Advertisers..................................... 42 43 46 50 69 87 118 135 145 153 159 161 163 167 167 169 179 185 190 193 195 196 T h e c o n te n ts o f th is m a g a z in e a r e f u lly p r o te c te d b y c o p y r ig h t . PUBLISHED AT 555 SEVENTH STREET, DES MOINES, IOWA The Oldest Financial Journal West of the M ississippi River Special Representative Charles Burke Care Northwestern Banker Phone Walnut 1844 Minneapolis Office Frank S. Lewis 840 Lumber Exchange Bldg. Phone Main 3865 Entered as second class matter at the Des Moines postoffice P a g e F ou rteen https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M EM BER Audit Bureau of Circulations Financial Publishers Association Financial Advertisers Association Chicago Office Herbert Armstrong 123 West Madison St. Phone Randolph 4440 First in the United States to Join the Audit Bureau °f New York Office Philip J, Syms 150 Nassau St. Phone 4836 Beekman Circulations St. Louis Office R. Fullerton Place 424 Merchants-Laclede Bldg. Phone Main 1342 Subscription Rates, $3.00 per year; 50 cents per copy June, THE 1922 N O R TH W E STE R N 15 BANKER W h a t Do You Desire in a Des Moines Correspondent? Safe Custody of Your Funds? This bank is fifty years old and has Capital and Surplus of over One Million Dollars. Intelligent understanding and cordial fulfill ment of your individual requirements? This bank takes care of its customers. Prompt and accurate execution of your orders ? This hank’ s large force of employes is trained to up-to-the-minute action. Complete service in all branches of banking? This bank’s eight separate and distinct de partments will meet your every need. Write us—a representative will be pleased to call Io w a L oatst & T r u st C o m p a n y H V N K M EM BER F E D E R A L R E S E R V E S Y S T E M Ca p i t a l , S u r p l u s a n d Pr o f i t s $ 1 , 0 0 0 , 0 0 0 , 0 0 HIPPEE B U ILDING DES M O IN E S R ea d ers w ill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R tolien w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T HE 16 N O RT H WESTERN BANKER June, 1922 ^ I I I I Î I I I lllI lllllllll!ll!!llI !I I I I I I I I I ]| | I I I I I ilI I Î !lllllllI I I I I I I !lllI llllllllllll!!l!illlH !I I I I I I I I I I !| lllillllI I I I I I I !I I I I I I I I !ll!llllllll!llllllll!lllllllllllll!ll!U llllilllllllllllI llllllllllllll!I I I I M ^ For What Will You Be Remembered? FEW weeks ago there died in the city of New York a multi-millionaire who was the senior partner of the firm of J. P. Morgan & Company. This man’s name was Henry P. Davison. At his funeral, officials of the United States Gov ernment, executives and representatives of great or ganizations of various kinds paid him tribute. Was it a tribute because he made money? Was it a trib ute to his financial genius? Was it a tribute to the wealth he has amassed? The answer is No, em phatically No. It was a tribute to Henry P. Davi son, because as the leader of the American Red Cross he had used his brains and his ability to or ganize the people of the United States into a great army of Red Cross workers who not only secured memberships for the Red Cross, but who helped to raise $100,000,000 that humanity might be helped, that soldiers might be saved and that the wounds of war might be healed. Henry P. Davison in devoting his energies and untiring efforts to the upbuilding of the Red Cross during the war has built for himself a monument in the hearts and minds of the American people which can never be erased, a monument far great er than any that will be erected for him from marble and granite. Andrew Carnegie was known as the master mind in the steel industry during his lifetime. But for what is he remembered today? Certainly not for his millions— but for what he did with his millions in establishing libraries throughout the nation, so that people everywhere could read and study and A learn and thus become better citizens, better hus bands, better fathers, better mothers and greater as sets to the communities in which they live. Thomas A. Edison has made money, and plenty of it, but Thomas A. Edison will be remembered while he lives and will be remembered after he has gone, not for the wealth he has accumulated, but for the wonderful inventions he has given to man kind— inventions which have made life more com fortable and living more pleasant. For what will you be remembered when you have finished the journey of life and crossed to the other shore? Certainly it will not be for your money, or your position in life, or the power you have— for these alone do not bring happiness to the individual or to the community, unless they are used to help the other fellow. So this is the great lesson that we can secure from the lives of the men whom we have just mentioned. Do the depositors of your bank and the people of your community think of you now simply as a hard, cold, money-grabbing banker, or do they find in you a personal friend, a personal advisor and a source of personal help when they are in trouble? Let us remember to use our money and our posi tions of trust and confidence in the community for the benefit of the other fellow. Let us strive hon estly to make all the money we can, remembering always that the true test of what we are is how we use the money we make and the power we have. For what will you be remembered? Expensive Business S EACH year goes by we are better enabled to analyze the tremendous expenses imposed upon us because of the war. In examining the Government expenses for 1922 we find the total amounts to $3,801,000,000. And of this great total, no less than $2,770,000,000 is to provide for the army and navy and pay debts in curred by wars gone by. The sum of $728,000,000 is for National defense. No stronger lesson nor any greater proof should be necessary to prove that war is an expensive busi A = rriiiimiiiiiiiitiiiiiiiiiiiiiiitiiiiiitmiiiiiitiiiiiiiiiiiiitiiiiiiiiiiiiiiiiii https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ness. W e hope that there may never be another great world war, but if one is ever discussed or considered it would seem that the people of the na tions who must bear the burden of paying for those wars would gain valuable experience from the past and rise up as one man and say that wars shall be no more. The money spent for war purposes could better be used for good roads, good schools and the pro motion of the community good in general. Financing destruction is an expensive business. miimmiimiiiiiiiti june, 1922 THE N O R TH W E STE R N BANKE R 17 = '£ u iiiiiiiiiiiim iiim iiiiu iiiiiiiiiiiiiiiiiiim iiiiiiiiiiiiiim ii Is He a Better Man Than You ? O Y O U think the banker across the street from you is a better man than you are? Do you think that some other banker that you know in some other town has more natural ability and is therefore better qualified to be a successful banker than you are? If you do think so, you think wrong. There are no super-men in the hanking business, or in any other business. The man you think is a super-man in the banking business, or in any other business, is simply the man who has worked harder and longer, is bet ter posted about his business than his competitor, has put more information in his brain by reading and studying than his competitor, but he is not a super-man, just a better man, a more efficient man, because he is willing to pay the price through hard D work and self-denial to obtain the things which every man can obtain if he will. In talking to Theodore Roosevelt one time about his wonderful accomplishments, a man said, “ Mr. Roosevelt, you are a super-man.” To which Mr. Roosevelt replied, “ I am the aver age man. There isn’t a single thing I do that isn’t done better by some man I know. I shoot only fairly well, I play bumblepuppy tennis. Most men on the Elkhorn rode better than I can ever hope to ride. I am just the average man— but by George I work at it harder than the average man.” That is the doctrine of success that never fails— work harder, for by so doing you can accomplish the things that are really worth while and that give you the greatest happiness and joy in life. Real Prosperity O N S T A N T L Y improving business conditions prove to everyone that real prosperity is not only on the way, but that it has actually arrived. One of the large, Eastern financial institutions re ferred to prosperity in a recent advertisement as follows : “ Real prosperity is nearer than it C has been for several years, because business has pretty generally returned to the simple, economic laws upon which prosperity is based. America is saving instead of wasting, investing instead of specu lating, paying off old debts and employing credit soundly.” Real prosperity is close at hand. How Fast A re You Traveling? HE sign along the highway may read “ Speed limit fifteen miles an hour.” But do we ever heed the sign? In this day of speed, both in automobiles and out of them, many there are who are going too fast. In the business world, men are trying to become multi-millionaires overnight. They are speeding up their human engines to a very high rate. They are doing this at a sacrifice to their health and to their happiness. Life is precious and we should preserve it. How fast are you traveling? Are you burning up the human engine with over work and worry? Are you causing friction in the gears by failing to keep the gasoline tank filled with T “ A C A S H IE R ’S C H E C K ” for $3.00 is all that is required to secure the monthly visits of the Northwestern Banker for an entire year. Each issue contains from 108 to 200 pages of mighty interesting matter pertaining to banks and banking interests in the territory covered by the magazine. “ O U R C O R R E S P O N D E N T S .” Every bank in the Northwest is in vited to a place on this list. Send us items of local interest, tell us about your bank and its growth, prospects, etc., also any other financial news of interest to bankers in your section. We are always glad to hear from our friends. “ S IG H T D R A F T S .” We always carry a large “ Reserve” of good will and additional service, and will promptly honor drafts made upon same by any bank. This department is for your special benefit. It may be made of very great benefit to your bank. Do not fail to avail yourself of its privileges. “ A C L E A R IN G H O U S E .” Our columns are a clearing house for all our readers. Express your views on any topic of interest to plenty of exercise, fresh air and relaxation from your everyday duties? A man drove into a garage some time ago and complained to the garage owner that he was not getting satisfactory service out of his car. To all of which the garage owner replied, “ You know, my friend, that every automobile has so many miles in it. You can take these miles all in a bunch or you can string them out.” In traveling through life, all of us have about so many years allotted to our human engine. W e can speed this engine up and crowd many years into a few years, or we can spread these years out by liv ing the normal, useful life. If you are exceeding the speed limit, slow down. the banking fraternity and submit same for publication. You do not have to agree with us, or with anyone else. We learn things by an interchange of ideas, and people with whom we disagree often prove valuable teachers. We shall be glad to hear from you. “ NO P R O T E S T ” has ever been offered to the statement that the field covered by the Northwestern Banker is the money-producing section of the American continent, rich in hogs, cattle, com , etc., and dotted with thousands of prosperous banks, all doing a good business, and the majority of them are readers of "T he North western.” “ S U R P L U S A N D U N D IV ID E D P R O F IT S ” increase very rap idly with those banks, whose advertisements appear regularly in the columns of this magazine. Full information as to rates and our special service will be promptly furnished on appli cation. Your business solicited and appreciated. The "Bankhas been twenty-six years in its present field. jlllllllllllllUIHIl!llinilllllllllllltl!llll!llllllllllllll!ll!lllll!ll!llllllininillll[l|ll!lllll!llllllllll!!lll Will lllll llll!llllllll!lllllll!íllllllinill!l!lllllllll[lllllll!l!!il¡lilllllll!lll 111llll!l!!l!i lllll[l!ll[IIIIIIII[l!ll|[]|[l!IIIII[IU][|l[lill]ll!lllll¡I!lllll[II!l!llllllll¡ll¡ll!l][l!llllllllll]!IHIIII!ll!l]ll!llllllll[lll]III[l!lllllll]lllll[llll¡[llllllillll[l!llllll!ll¡llllllllllllllllllllll!lllllllllllltlliri https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JOHN H. PUELICHER Vice President American Bankers Association. John H. Puelicher started his business career with the Wisconsin Marine and Fire Insurance Company in 1885. He entered the banking world in 1893, join ing the staff of the Marshall and Ilsley Bank at Milwaukee as discount clerk. His rise as a banker has been rapid. In 1905 he was made assistant cashier, in 1906 cashier and in 1914 vice president and cashier. In 1920 he was elected presi dent of the bank. Mr. Puelicher is recognized throughout the United States as one of the country’s leading bankers. He has given dis tinguished service to the American P a g e E ig h t e e n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bankers Association, and was made sec ond vice president two years ago. He was elected first vice president at the last convention in Los Angeles. He is chairman of the Committee on Public Education and has been instrumental in inaugurating a campaign of education in the public schools under auspices of the association. During the wrnr he did commendable work for the War Savings campaign of the United States Treasury. He has been president of the Milwaukee school hoard, and is now trustee of Milwaukee-Downer College and Marquette University. N orthwestern B anker The Necessary Financial Journal TW E N T Y -SE V E N T H YE A R JUNE 1922 N UM BER 418 Is Your Country Bank Director Merely a Figurehead? 1 he position oi director is not merely honorary, but includes certain well defined and definite duties By Gilbert Semingson North Dakota State Bank Examiner F B A N K directors generally could be made to fully understand and realize their responsibilities and liabilities as such officers and act ac cordingly, there would be fewer de falcations, there would be fewer bad loans, there would be fewer closed banks and the whole banking frater nity would grow stronger in public confidence and public trust. A director is not merely a figure head, or rather, should not be, al though he oftentimes is. His is not merely an honorary position. He has work to do. He is placed on the gov erning board of his institution for a definite purpose and he has certain well defined and definite duties to per form. Those duties include the care ful and thorough examination of the assets of the bank at least twice each year, at which examination a thorough check-up should be made of the cash, stocks, checks, certificates of deposit, cashier’s checks, and, most important of all, the loans and discounts. It is upon the safety of your loans and dis counts that the strength of your in stitution depends, and upon the di rectors rests the responsibility of pro tecting the stockholders from loss by bad or excessive loans. Your stock holders elect their directors from among their membership and they expect those directors to perform the duties required of them by law and to have a reasonable understanding and knowledge of the condition of the bank. It is not required that a director be an expert accountant or that he know exactly all of the details connected with the work. It is required, how ever, that he exercise the care and judgment and diligence of a reason ably prudent man in the discharge of his duties and I hold that such care de mands that he be sufficiently familiar I with the paper of the bank to know whether there are going to be losses to the stockholders through bad loans and to take steps to have such losses reduced to a minimum. It is not of course possible to guard completely against loss by bad loans but proper authorization and supervision by di rectors will go a long way toward re ducing them. The examiner sent out by the banking department is not in a position to accurately pass upon the paper, as he knows nothing about the one man bank idea that must be rooted out of our banking system before we can reduce failures to the minimum. The honest and conscientious cashier will welcome a thorough investigation of his work. If he has made a good loan, that is to his credit, and if he has made a bad one, he should be inter ested in receiving the advice of the di rectors in working out of it to the best advantage. No objection can properly be made to the interest of a director in demanding to know just what is going on in his institution and to inquire into the transactions that he does not understand. That is his job. Does your director make a thorough H e is on the Board of Directors; the examination of the assets of the bank name of the position itself would in at least twice a year? Is he sufficient ly familiar with the bank’s paper to dicate that he should direct. How keep guard against losses to the stock much directing can he do if he does holders? Does he actually direct the not acquaint himself with the real bank, or does he “ leave it to John?” condition of the bank? The whole difficulty seems to lie in the indiffer ence with which men holding the posi makers except as appears upon the tion of director seem to look upon record which is given him, and a note their positions and the child-like trust with its security that may appear on and confidence they seem to have in its face to be worth 100 cents on the their acting managers. They assume dollar may in fact be worthless. The the attitude that there is no use to directors, however, or at least some of bother about the paper of the bank them, are usually local men who are or any of the transactions carried on acquainted with the patrons of the within it. They have John Smith act bank and they are in a position to ing as cashier, who is paid to see that know something of both the financial the bank is run right and they know and moral responsibility of the bor that John is a square, capable fellow rowers. The North Dakota law calls whom they can trust. But it is in for at least two meetings a year, in the class of trusted employes that we which a thorough examination should find the shortages and defalcations. be had, and if such examination were If they weren’t trusted, they wouldn’t in fact made I am satisfied that there have a chance. W e all want to think would be fewer bank failures. I be of our fellow men as being honest and lieve that this applies particularly to square and capable and no ore of nor the smaller country banks where too mal mind wants to look upon all of the often the entire management is placed acts of another with suspicion and in the hands of one man and the d i feel that unless he is closely watched rectors having implicit trust and con he is going to take some unfair ad fidence in him, never question his in vantage. But when we are placed in a tegrity or his judgment. It is this position in which our duties require P a g e N in e t e e n https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 20 that we keep a check on another, it is not a question of how we as individ uals feel toward that man but it is a question of properly performing the task we are called upon to do, and so when a man assumes the position of director in a bank, no matter what im plicit confidence he himself might nave in his cashier, he should remem ber that he is elected by the stockhold ers to protect their interests and they look to him to satisfy himself, not from the statements of the cashier, but from actual knowledge of the con dition of the bank. Whether that cashier is a stranger, intimate friend or relative, there should be the same thorough understanding of the work that he is doing. It is not only dishonesty that must be guarded against, but also ineffi ciency and poor business judgment, and it is for the director to know what the man in actual charge of the bank is doing. His responsibility is not only to the stockholders who have N O R TH W E S TE R N June, 1922 BANKER elected him to safeguard their inter ests but he is also under a moral ob ligation to the depositors. By lend ing his name to the institution as a director, he has encouraged those whose confidence he holds to leave their m'oney in the bank, and it is his duty to them to see that its business is conducted along lines which will insure the return of their funds upon demand. Undoubtedly, many directors in their failure to perform their duties properly as such officers do not take into consideration their financial re sponsibility for loss resulting from their negligence, but the law seems to be well established that bank directors must use ordinary care and diligence to protect the stockholders from loss and if they fail to exercise such ordi nary care and diligence, they will be held personally liable. What meas ure of care and diligence is required, would be for the courts to say, and would of course depend upon the cir- cumstances of the particular case. But if a director would make a check and diligently and honestly administer the affairs of his bank as he agrees to when he signs his oath of office, there would be no danger of financial loss to him beyond that of any other stock holder. In addition to this financial liability, the director has also his good name to protect,/and when he lend.-j that good name to a banking institu tion, others doing business with that concern and financially interested in it have a right to expect that he will use due diligence in protecting their interests, and if he fails to do so, that good name will be good no longer. An active board of directors is the best guarantee for the safety and suc cess of any banking institution, and every director should make it his busi ness to get such an understanding of the affairs of his bank as will enable him to know whether or not it is being properly managed. CARTOON COMMENT ON TOPICS OF THE DAY W ell, H e re W e A re A gain (Chicago D aily T ribu n e) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T h e Battle Rages (Kansas City Times) T h e D og in the M anger (Los Angeles Times) June, 1922 THE N O R TH W E STE R N BANKER 21 What Is Your Idea of the Standards Of a Good Banker? By Geo. T. McCandless “ The Man Behind the Counter” is not worth much unless it teaches us what to avoid. It is hardly conceivable that a child should acci dentally burn his finger on a hot stove more than once. Having one’s eyeteeth cut is not always a pleas ant operation, but it has its uses. During the happy hunting days follow ing the signing of the armis tice salesmen became order-takers in spite of themselves. Retailers were buying goods regardless of price or discounts offered. The public was buying from the retail ers in vast quantities. Everybody had a jo b ; wages were high, ditto prices. It was a great life if nobody had weakened. The banks had contributed mil lions toward the purchase of Lib erty bonds. Bankers who read this will recall the little subscription slips their customers signed sub scribing for bonds, in which the banker agreed to pay for all bonds not fully paid for by the customer. It only took $5 in cash and $95 worth of enthusiasm or patriotism to purchase a $100 bond. I wonder if the bankers’ part in the successful flotation of the bil lions of bonds issued by our govern ment during the war will ever be fully appreciated. Truly it was a work of love and patriotism and faith in humanity. Yet I doubt that the day will ever come when a memorial will be erected to the bankers of America. I surmise that if any one should try to start a movement with this object in view he would he laughed out of the com munity. The bankers do not want anything like this, but if any class of business men deserve such recog nition, they surely are entitled to it. The inflation follow ing the war did not create many new million aires of ordinary bankers. On the contrary, they discovered that wages, supplies and all costs of do ing business had increased unac companied by any rise in interest rates. Perhaps this was for the best. Bankers had to suffer fewer read justments than their customers. Deflation hit the margin of collat eral and the banker found himself pretty busy protecting himself in this respect. The buyers’ strike and E x p e r ie n c e https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the rapid fall in value of live stock and grain which the farmer had to sell caught many a banker unaware. Some one has said, “ A good busi ness man makes a good banker, but a good banker does not always make a good business man.” As the slang expression would phrase it, “ That fellow said a mouth full.” The banker who was devot ing himself to running a bank found boys did not know when to quit and when their endorsements were called on there were moments when they were prone to wonder if it had been worth the cost. W hat is a good bank? Is it one that has the largest deposits or the largest footings? Is it the one that has the most beautiful furniture and fixtures? Is it the one in which the president or cashier is most promi nent socially or the best “ mixer” ? W hen I say, “ W hat is a good bank?” I mean, what is the safest bank for the depositors and the best bank for the stockholders; what is good for one is good for the others. There’s more profit in the long run in conducting a good bank than a bad one. Statistics will bear me out in that statement. A banker should be as careful of his reputation as if it were his sole asset. He should be absolutely and always moral, at home and abroad. The people should demand this of their banker. The other day an examiner dis covered a forged note in a popular bank. The cashier admitted it, and did not show up the next morning'. He is still absent and is not sending any post-cards to the old home town advising former aquaintances and customers of his whereabouts or plans. The president of the bank is under arrest. Further investigation has shown forged notes running into “The Man Behind the Counter” six figures and new discoveries are being made daily. The bank is he had plenty to do to keep himself “ busted.” Something else has been busy. The banker who was a stock discovered beside forged notes. The holder in many of the business en president of the bank was a frequent terprises of the town, and perhaps visitor in the metropolis of his state, was engaged in operating a ranch and his mecca on these trips was a on the side, found himself looking large gambling house. One of the for shelter when the storm came. men who frequented this place has Perhaps he was the president of a said he had seen the banker lose as brokerage company or loan com high as $12,000 in one evening. pany and had endorsed liberally on So I would offer here my idea of this kind of paper in order to make a good banker: One who is hon it sell freely. Perhaps he had be e st; devotes himself to that one lieved there was never to be a limit thing (banking), loans money so and that he could continue indefi that it will be repaid with interest: nitely to rake off his 2 or 3 per cent frowns on loans to other officers and on the sale of this paper. directors of his bank which are not It is needless to enlarge on this amply secured; runs his bank ac subject, as we all know now that cording to law and always has the banker who kept his own bank money to loan to his customers in order during the time of inflation when they are entitled to accom m o is the one who has suffered the least dation ; one who does not make a during deflation. The easy-money practice of borrowing to lend again. T H E 22 NO ET HWESTERN BAN K E R ju n e , 1922 Four Thousand School Children Become Bank’s Boosters Through Contests School garden contests held each summer and fall and bird house exhibits in the spring are immensely successful advertising plans By A. J. Wentzel Vice President U?iited States National Bank, Superior, Wisconsin O R five years our bank has been putting on prize vegetable con tests for the school children of the city. Each spring the bank dis tributes two thousand garden seeds to school children, and prizes are offered for the vegetables, which are exhib ited and judged in connection with the Tri-State Fair in the fall. The contest has not cost us over $500 for the five years to date, yet we have re ceived untold publicity, and one of the local newspapers has estimated that the plan has resulted in the putting of from $75,000 to $100,000 worth of vegetables into the cellars of parents of the school children. The fair association has felt so com plimented by the thousands of exhib its for the bank prizes that they give us all the space we desire free of charge, and as many complimentary tickets as we can use. Each spring we distribute circulars to the school children of the city— this year’s circular is pictured on this page. The circular announces the contest, tells of the many prizes which range from $3 to 50 cents, and explains the contest. Seventy prizes are given. Different prizes are given for city and county children, and for children under fifteen. In addition, the city and county schools compete for sil ver cups. F CASH PRIZES TO BE AWARDED BY THE UNITED STATES NATIONAL BANK At the Tri-State Fair this fall (1922) on vegetables raised from the seeds given free by this bank to the school children of Superior and Douglas County RUTABAGAS BEETS CARROTS First best exhibits. City schools. Firet best «-honl» Cim b,.t «bibit, ty‘"schools, two prizes' at »3 tyschools! one^jrize'at kT*" S'sch^'lT two^pme* %°t3 schools, two prizes ' at 12. County’ sTwi^one1priwat Third best exhibits, city schools. Third best exhibits, city^schools, ty schools, two prizes at *1 five prizes at $1 each. Copnty*"schools^three^prizes at“jl School s, at%2 prizes at $2 each. Fourth ^ beat exhibits. ^ City prizes at 60c each. Fo“7oola.b?io prizes18'at ^0o each. County schools, two prizes at GOC*a . a pupil in the County S We Are Giving Seventy Prizes THIS YEAR TO THE SCHOOL CHILDREN OF SUPERIOR AND DOUGLAS COUNTY. UNITED STATES NATIONAL BANK SUPERIOR, WIS. THE BANK THAT PAYS INTERESTON SAVINGS QUARTERLY. SCHOOLTHRIFT DEPOSIT BANK. HOME OF THE CHRISTMAS SAVINGS CLl TIE BANK THAT BELIEVES BUILDING UP 0U1 CITY AND COUNTY IS OUB BEST CHANCE FOR PROSPERITY One of the circulars announcing year’s garden seed contest. this Last year there were more than 3,800 school gardens in the city en tered in the bank’s contest. The dis play at the fair extended the full length of the end of the building— a portion of which can be seen in the picture below. The exhibit is a great Vegetable display at the fair. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis prizes at 60c each. attendance booster for the fair, and one of the fair directors last year esti mated that 15 per cent of the attend ance could be credited to the competi tive display of vegetables by the school children under our presentation. W e have distributed some 10,000 packages of seeds during the five years of the contest, and there is no measure to the tremendous prestige the bank has received throughout the city and county from this plan of ad vertising. In addition to our annual garden seed contest, we have put on a bird house exhibit now for two years. This year we had nearly double the results of the first year, and are of the opin ion that if we have the contest next year we will have to secure a building for the exhibit. W e have a very large lobby and ar ranged for shelves on the top of our fixtures and considerable counter room and tables to display the bird houses, but the enthusiasm of the boys in this particular line this year came very near handicapping us in our regular business. Our plan has been to give the boys about two months to make thenhouses. They must not be delivered at the bank before the last week in March and are put on exhibition during the first week in April. Bird house exhibit in the bank lobby. June, 1922 THE W e offer twenty-nine prizes, from $10.00 to $1.00. Posters are put up on the bulletin boards in all the schools in the city telling of the con test. The schools have taken up the matter very enthusiastically as it is a great incentive to the boys in their in dustrial art and manual training work. Many parents have told us that their boys spent many evening at home that they otherwise would not have done, making bird houses until they finally had one that they felt worthy of the exhibit. In our advertising we have laid much stress on the consideration and love of bird life, calling attention tq the birds destroying insects and worms that are a menace to berry bushes, fruit trees and gardens. W e are told by parents and even the police department that this par ticular scheme of advertising has clone much more good than we ever anti cipated. Boys are now fighting for the birds instead of wanting to destroy them and there is a noticeable disap pearance of air guns and flobert rifles formerly used in the shooting at everything that flew. After the exhibit we sell the bird houses ar.d remit the purchase price to the makers. Last year all bird houses were sold, and the boys made many duplicate orders. W e have discov ered that we rather overstocked the market last year and many of the bird houses sold were used as samples for making others in the homes where they were purchased. W e have sold practically all of the bird houses this year with a few ex ceptions of some that were not prop erly made or not adaptable for the purpose of bird houses. The houses not sold are returned to the makers so that the boys understand we take no advantage of them in any respect and that we are working in their interest. This plan of advertising takes con siderable time and attention but is inexpensive when compared with the write-ups freely given us through all local publications, and many favorable comments and resolutions sent to us by different business and social or ganizations for the work we are do ing. In fact many of these organiza tions purchased bird houses to put up in the parks throughout the city. First E gg— L et’s speak to those girls on the corner. Second D itto— ’Sno u se ; they’re telephone girls. F. E.— What of it? S. D.— They w on’t answer. -— Panther. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O RTH W ESTERN BANKER 23 Bankers Must Fight Menace of Radical Propaganda By Thomas B. McAdams President American Bankers Association HE output of unsound radical propaganda is one of the most serious menaces in the United States today. I am afraid there is more unsound propaganda going on in this country today than we realize. W e have direct evidence of Bolshev ism in North Dakota. W e have seen that prosperous state, through a pro pagandist appeal to the farming ele ment and through the nationalization of a number of industries in the state, turned over to a group of persons that have ruinously exploited the very peo ple whom they pretended to desire to help. It is not surprising when such pro paganda-produced movements gain headway among the congested and il literate foreign classes in the great ci- T Now is the time, while the forces of radicalism are still scattered, to combat them, for there is enough safe and sane sentiment inherent in the American peo ple to crush these unsound movements if it only exerts itself. ties, permeated as they are with oldworld ideas and antagonisms against autocracies that have too often mis ruled them in the lands of their na tivity. But we may well take alarm when we see the same sort of thing prevailing among the sturdy American farming element, ordinarily the most sane and substantial group in our na tional life. The state of North Dakota, which was less than $500,000 in debt at the time Townley went there, finds itself today over $7,000,000 in debt, and in the same period taxes of the people there have been increased more than three-fold. Despite this example, and despite the way the good common sense of the farmer of North Dakota led him to rise up last fall and cast out the administration that had done this thing, we still see the same movement endeavoring to fasten itself on W is consin. The movement is growing so that the conservative people of W is consin fear that it may, under a slight ly different name, get the same hold on that state that it got on North Da kota. W e cannot afford to go to sleep and let such movements as this make head way. Out of them grow menacing attacks on the fundamental institu tions of the country’s business and po litical life. The dangers of these at tacks are increased by the fact that they often find support in one phase or another by influential people who are not themselves, generally speak ing, radical in their viewpoints. Thus, if it serves the purpose of radicalism to stir up discontent against the Fed eral Reserve System, charging that it is responsible for the business ills that overtook the country, they do not scru ple to do so. A certain amount of re spectability is given to their attack on the Federal Reserve System be cause other men than themselves on different grounds are also assailing the system, not because they believe in a social upheaval, but simply be cause they differ in their banking the ories or financial conceptions from those who have so well and so con servatively conducted that great bul wark of America’s financial safety. Again, radicalism will be found preaching the dangerous doctrine of fiat money. Force is lent to their ar gument because there are others be sides themselves, who are utterly op posed to social radicalism, but who nevertheless hold unsound monetary opinions and are advocating fiat money. There is too much tendency, par ticularly among the more substantial classes of the nation and in the great cities, to under-rate the importance of the radicalism that is manifest in a variety of ways throughout the coun try. The outbreaks of it here and there may not of themselves be seri ous, but the sum total of them is a force to be reckoned with. Now is the time, while the forces of radical ism are still scattered, to combat them, for there is enough safe and sane sen timent inherent in the American peo ple to crush these unsound movements if it only exerts itself. The great danger is apathy. Radi calism is strong because it is active and noisy. The chief weakness of sound public opinion is its slowness to action. The task of combating rad icalism is not great now. W e should devote the same energy to telling the truth as radicals devote to telling un truth. It is my sincere conviction that the signs of the time demand that the American public arouse itself from its lethargy against the unsound radi cal propaganda that is prevalent in many directions and under many guises in the country today. THE 24 N OR TH W E STE R N June, 1922 BANKER Exhibit Stimulates Interest in Boys and Girls' Dairy Calf Club By E . C . Ward Vice President Farmers National Bank, Waseca, Minn. many signs in the lobby to stimulate interest— such as “ W e Are Enthusi astic Dairy B o o s t e r s “ Big Rugged Cows Are Best, the Boys’ and Girls' Dairy Club Promotes the Breeding of Big Pure-Bred C ow s;” “ Join the Dairy Club— W e W ill Help Y ou to Buy a Calf.” Not only did the exhibit stimulate the interest of the boys and clubs in the Dairy Calf Club, but it also roused the interest of the business men of the town in helping the boys and girls to purchase pure-bred calves, and to give attention to the work of the Calf Club. Fortunes in Politics Pure bred stock exhibit in the bank lobby. O S T IM U L A T E the interest of the boys and girls of the county in the raising of pure bred stock, the Farmers National Bank recently held an exhibit in the lobby of the bank. Three of the representative calves in the six months’ class were shown, a Guernsey, a Holstein and a Jersey. Beside the exhibit of the calves there were also a number of pictures of the sires and dams of the three calves, and in some cases the pedi gree of the animals below the pic tures. All three of the animals were of full bred stock, and one of them at least was sired by a national cham pion. The Guernsey calf was seven months old and seemed of a good average heft. The animal’s sire was Gay Ladd V I of W isconsin and its dam Lassie Riverside of Minnesota. The six nearest dams of the H ol stein calf have an average of thirty pounds of butterfat for seven days, which is an unusually good average. The calf was the daughter of Sir Fayne Segis Ormsby, and its dam was Atela Clyde V . Sir Fayne’s four nearest dams had an average of 1015 pounds of butterfat in one year. Ruthelle’s Bess, the Jersey calf, was T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis out of Lad’s Ruthelle and Lake View Pogis. Ruthelle’s Bess’ dam milk ing in her seventh month made 36.02 pounds of butterfat at 42 cents, the price paid at the W aseca creamery, gives a total of $15.12 at a feed cost of $6.91, leaves a profit of $9.23 for the month of March, 1922. Ruthelle’s Bess’s sire, Lake View Pogis, was out of Crono Pogis, and Dam Sadie of Poplar Hill, a Register of Merit cow. Lake View Pogis’ grand sire is Pogis 9th of H ood Farm. For several months prior to the exhibit the bank had advertised that it would loan money at six per cent to the boys and girls between the ages of ten and eighteen for the pur pose of buying high grade or regis tered dairy calves. W e also wrote letters to all patrons of the cream eries in the county telling them of the bank’s offer and calling their at tention to the exhibit. More than one thousand people came to the bank to see the calves, which were quartered in the lobby as shown by the above picture. All of the animals were as clean as pet poodles and occupied a stall in the center of the lobby. The stall was decorated with ribbons, pictures and calf club information. There were A widely heralded item in the pa pers to the effect that the late Henry P. Davidson’s will sets apart $4,500,000 in order that his son may be able to continue a political career already promising, is perhaps unfortunate for a deserving young man in New York state politics. It is no true disqualification for public service for an ambitious man, young or old, to have an annual in come of $200,000. The fact relieves him at once of any suspicions of ve nality, the curse of politics, because his future is already provided for, so far as financial security is concerned. But it makes his income a target Un political opponents, and an object of worship for a horde of needy poli ticians whose shrine is a full purse. Y oung Davidson’s preference for a political career rather than a place in the great banking business in which his father distinguished him self, is not at all to his discredit. Its background unquestionably is a de sire to serve the public, and rich young men can be exceedingly use ful in that direction when so dis posed. American public life has many positions particularly fitted for the industry and patriotic devotion of such men. Business has all too few represen tatives in practical politics. Condi tions in a hundred big cities and a score of great states are evidences of that fact, and point to the necessity for the promotion of business prin ciples in all the affairs of popular government.— Chicago Journal of Commerce. National Conventions June 11-15 June 23-24 Oct. 2-6 Associated A d v e r t i s i n g Clubs ........ .........Milwaukee New England Bankers Ass’n New Castle American Bankers Ass'n New York City Investment Bankers Ass’n Del Monte, Cal. June, 1922 THE N O R TH W E STE R N BANKER 25 Commercial Paper—Why and How the Bank Should Buy It Many bankers prefer this class of security to carry as a secondary reserve because of its safety and definite maturity date By George L. Rowe Vice-President Mechanics Savings Bank, Des Moines O M M E R C IA L paper is com monly known as single name paper. It is one of the most com m on investments of city banks. This type of investment permits the bank to anticipate seasonal demands such as Christmas Savings clubs, etc. The ordinary line of loans which a bank carries is not always paid on the maturity date. By investing in commercial paper having a definite maturity date, you are thus enabled to meet any requirements that you may have. Just a word here as to the development of this paper. The Credit Department as a department of a bank dates from about 1890 when there were not over six credit departments in operation. In 1895 the Executive Committee of the New York State Bankers associa tion adopted a resolution recom mending that member banks ask for written statements. In 1898 the N a tional Association of Credit Men adopted uniform statement blanks and in 1899 the American Bankers’ Association at Cleveland adopted uniform property statements. These efiforts were the beginning of bank credit research, a very necessary adjunct to the purchase of com m er cial paper. Cleveland is today, I believe, the outsanding figure among American cities as regards the development of credit research work. I was priv ileged three years ago to spend about a week in this city and during that time I spent some considerable time going over such matter with Francis Coates, Jr., who by the way, is an old Iowa boy, having come from Dubuque, and who has charge of the clearing house examinations in that city. Just to give you a brief idea as to what they think of his work and how highly they prize it, the entire matter is left to Mr. Coates. He carries on his own work, hires all of his own employes, names all salaries including his own, and the cost is pro-rated among the Cleveland banks according to their resources. Cleveland bankers have told me that it was their opinion this was the best money which they spent during each year’s business. C https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Getting back to my subject— large wholesale houses, meat packers and similar concerns, found that to carry on their lines of industry properly it was necessary at certain times to use a very large line of credit. It being not always advisable to call on their banks to furnish such amounts, they found by taking the necessary steps that it was possible, upon the sub mission of proper statements to- GEORGE L. ROWE gether with other data as to earning records of their company, to borrow money on their own paper in various amounts from outside banks. This entailed a considerable amount of work inasmuch as they were unable to place any great amount at any one place. In due course of time this brought about the establishment of brokerage concerns, which we still have with us today, who there after handled all such business. Any firm wishing to place commercial paper either sells outright to such a brokerage concern the amount they wish to dispose of, or in some cases the brokerage concerns advertise such paper for sale and then place to the credit of the issuing concern monies received whenever they fiave sold the paper. For this service of course, they make their regular charges. This commercial paper is very often endorsed by the officers and directors of the corporation. This adds the individual responsibility of the man endorsing but in no case is it done with the thought that it will ever be necessary to collect from the individual endorser, but is rather done for the purpose of having the individual guarantee that he will see to it that the corporation will meet their obligation. The payment of all good commer cial paper at its maturity is now ac cepted as a matter of fact. There is, of course, some refunding of such paper but insofar as the individual purchaser of this paper is concerned, he has never been affected. The issuance of commercial paper today is dependent very largely on the line of bank credit which a con cern is able to establish. In other words, commercial paper is very largely a fairweather proposition. This statement is borne out by the fact that during times such as we have recently come through, there was very little commercial pa per being sold. N ow that money is again easier, we find there has been a very large amount of such paper sold throughout the country. To make my point clear, the very large buyers of commercial paper who are the larger banks situated in our cities, only buy any one name in large amounts when they have been satisfied that the issuing party could, if it became absolutely necessary go tc its own individual banks and bor row money to pay off its commercial paper obligations at maturity. This would put some burden on the bor rower— first, because it would be ne cessary for him to pay a higher rate of interest than he finds it neces sary to pay on commercial paper. By every moral and economic law, the forcing of renewals on holders of commercial paper is wrong and dis graceful. The only time I believe that this has ever happened to any of 1907 and possibly to some extent (Continued on page 140.) 26 THE N O RTH W ESTERN BANKER June, 1922 The Basis for Present Iowa Law Taxing Banks, and Monies and Credits An explanation of the purpose of the Thirty-fourth General Assembly in passing the law and the principles sought to he expressed By K. J . Johnson President Farmers National Bank, Osage, Iowa Y R E A SO N of the recent de cision of the Supreme Court of the United States in the R ich mond Case, and incidentally the de cision of our Iowa Supreme Court in finding the title too brief and nullify ing the statute of the 38th General A s sembly authorizing the deduction of United States Liberty Bonds held by hanks, in valuing bank stocks for tax ation and the resulting large amount of taxes assessed, the question of tax ation is again engaging the mind of the bankers and has been the subject of several bulletins issued by the Iowa Bankers Association. The present law fixing the taxation of banks and monies and credits was enacted by the 34th General Assembly in 1911. The bill was a committee bill. It was drafted by a joint com mittee of sub-committees of the Ways and Means Committees of the senate and house. Having served on this committee, which obtained some inter esting information as to existing con ditions and having made some neces sary study of the law and the effect of the law, statutory and judicial, there tofore attempting tO' tax banks and in answer to the quandary as to what '.he legislature had in mind, and believing that the bankers and citizens are en titled to know, the writer, through the courtesy of the Northwestern Banker, will attempt the information. At about the time the Thirty-fourth General Assembly convened, by a de cision of the United States Supreme Court our law was found impotent in form to levy or collect any tax on any bank or the stockholders of any bank in the state. This was based on the fact that a former legislature had overlooked the dual property of cor porations, the stock owned by the stockholder being one, and the prop erty of the corporation owned by the corporation being another, and both, in the absence of some legal bar, being taxable, Iowa was trying to tax bank ing corporations but once, but in d if ferent ways, state banks on the prop erty of the corporation, national banks on the stock of the stockholders. At the same time there was an insist ent demand that the law covering the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis taxation of other monies and credits should be modified. As a justifica tion of the act, the purpose of the legislation and the principles sought to be expressed, the recital of a few matters in fact and law are necessary. Prior to that time we learned that many banks were operating in the state and paying r.o tax, direct or in direct, as banks or bank stocks were taxed as monies and credits and sub ject to a deduction for debts. W e also learned that the officers appointed to apply the tax laws, the The Iowa law taxing bank stock and monies and credits which has been the subject of so much discussion in finan cial circles recently, was passed by the Thirty-fourth General Assembly in 1911. Mr. Johnson, the author of this article, was a member of the sub-committee of the Ways and Means Committee of the House and Senate which drafted the law, and is therefore in position to speak authoritatively of the idea and purpose of the legislature in passing the law. assessors, were prone to adhere strict ly to the letter of the law and assess monies and credits as required, at market value, but all other forms of property at a reduced value and as a consequence, our citizenship holding their property in an intangible form were endeavoring to meet this preju diced and unlawful practice by officers of the law, by evasion or by moving to a “ fairer” clime from whence invita tions were extended and where the same property might be held under a small millage tax or no tax at all. The query has been made as to whether or not the legislature did not possiblv think that capital invested in the bank ing business and monies and credits, in the general sense, were different. It did, and so had the United States Supreme Court for over forty years. It would seem an insult to intelligence to waste argument to try to prove that an investment in the banking business was, or ought to he, in the same class as money loaned at interest. The 34th General Assembly ac knowledged the two classes, subject to such acknowledgment by the Supreme Court’s definition of “ other moneyed capital” in Section 5219, U. S. R. S. The rules we were bound to respect were contained in the constitution of Iowa and the National Bank Act. Our constitution requiring us to make such tax laws as shall be “ uniform in oper ation” and Section 5219 of the Na tional Bank Act enjoined us from levying any tax on a national bank in any other way than by assessing the stockholder on his stock and at no greater rate than was assessed on “ other moneyed capital in the hands of individual citizens of the state.” There is no contention but that the construction of our constitution per mits the legislature to tax different properties at different rates, providing all in the same class are taxed alike. I think I can say with equal confi dence that for over forty years prior to 1911 and until the “ Richmond Case” was decided in 1921, the United States Supreme Court had, in a con sistent and uniform line of decisions, defined “ other moneyed capital” in Section 5219 not as all or any other moneyed capital but only such mon eyed capital as was competitive with the capital o f national banks. While not conversant with all of the facts in the Richmond Case, it would seem that the rules of “ Weight of Authority” and “ Stare Decisis” observed by our courts, warrant us to believe the above definition is still the lazv and would seem that congress ought to amend the act so that this long estab lished meaning may not be misunder stood. The riddle for the legislature to solve was : What capital competes with capital in a national bank ? It replied in the act : All capital invested in the same business. The functions and business of a national bank are outlined in its grant of authority—the National Bank Act and Federal Reserve Act. Paragraph seventh. Section 5136 in the National Bank Act says : “ To exercise by its board of di rectors, or duly authorized officers or agents, subject to law, all such inci dental powers as shall be necessary to June, 1922 THE N O R TH W E STE R N BANKER carry on the business of banking; by a sound public policy. While it was discounting and negotiating promis asserted with vehemence and confi sory notes, drafts, bills of exchange, dence by a prominent banker-lawyer and other evidences of debt; by re member in opposition to its passage, ceiving deposits ; by buying and selling that it was invalid and unconstitu exchange, coin, and bullion; by loan tional, it still exists and “ holds water” ing money on personal security; and after eleven years of assault by the by obtaining, issuing, and circulating elements and some of the banks. The notes according to the provisions of authors and members have read with this title.” pleasure the observations of our own Amendatory acts and the Federal Supreme Court and the United States Reserve A ct now authorize savings Circuit Court which seem to us com deposits, loans on real estate and the plimentary rather than derogatory, banks’ authority to act in fiduciary and I am sure the large majority of the membership which passed the bill capacities. If the seeming rule in the Richmond look forward with confidence to its Case is sound, any capital used to ac stability to accomplish the desired end. complish any one of these functions The purpose of the bill w as: (a) To reclassify the monies and is competitive. The; United States postal department competes by selling credits law, placing investments in the exchange, every loan on real estate banking business, including whatever by the Federal land bank or otherwise capital Congress intended in Section competes, every purchaser of munic 5219 in the term “ other moneyed cap ipal bonds and securities competes, ital,” in one class, and other monies every trustee, guardian or adminis and credits in another class; trator competes and in fact every de (b) to make a law to read— and to positor who has money on deposit for permit the treasurer to collect— the interest is competing with the bank same amount of tax per dollar of in which solicits his competition. Should vestment from every bank in the same this rule prevail it is difficult to under stand how banking capital could be taxed at all as the state now relieves of all tax burden a very large volume of “ moneyed capital invested in se curities for the payment of money.” The chief function of a bank is to re ceive deposits and its profits are very largely determined by the difference in “ interest paid” and “ interest earned”— in other words, the differ ence between cost and selling price of money. The profits on bank stocks are not determined by the rate of in terest on loans but on the cost of de posits and on the skill, ability and judgment which its officers exhibit, the same as any other business. Neither do usury laws operate against bank stocks for dividends and profits are not limited, as is “ money loaned,” to a return of 8 per cent. With these facts and conclusions before us, with the wreck of the ad ventures of former sessions of our legislature demolished by the courts, and with a court record replete with a continuous effort on the part of some banks to evade any tax and to defeat any law by every skillful and technical legal maneuver possible, the 34th General Assembly officered a new draft from the Ways and Means committees, with instructions to steer it through the gauntlet between the “ Scylla” of the Iowa Constitution and the “ Charybdis” of Section 5219, U. S. R. S., and gave it in charge also the care of the infant millage tax on the voyage. Our compass was “ equal ity before (and after) the law” and taxing district, by denying the favor of deduction for debts; (c ) to tax investments in the bank ing business at the same rate as in vestments in any other business in the same field; (d ) to tax all other monies and credits than the first class above re ferred to at a flat rate of five mills on the dollar. W e had ascertained that all of the capital invested in banking in some of our large cities was not contributing as much to the public revenue as one or two small institutions in some of our small towns. W e therefore deemed it expedient as good, sound public policy to have the state discon tinue the practice of paying a pre mium for stock holders who were in debt for their stock or allowing the deduction for a debt assumed by pur chase of real estate in Canada or else where or for whatever investment as sumed. The important principle in taxing competitors is to so construct the law that the spirit of the constitu tion of uniformity of operation shall (Continued on page 115.) Iowa Group Meetings Snap Shots https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27 THE 28 N O RTH W ESTERN BANKER June, 1922 Europe Is Getting Back on Her Feet Financially and Economically Despite the unfavorable influence of French fear of Germany the situation is improving and this will vitally affect the United States By Leslie Hanson Investment Editor Northwestern Banker U R O PE is daily assuming a larger place in the public eye and bankers and business men have their ears close to the ground to catch the first word of changes in the economic and financial status of lead ing countries on the other side of the Atlantic. It is becoming increasingly apparent that the interests of Europe are closely interwoven with the United States affairs, and any betterment abroad is bound ultimately to have either direct or indirect influence here. On the surface news from Europe recently has been far from reassuring and there have been developments that were decidedly disturbing to the international financiers and exporters in the United States. But slowly and surely Europe is working out, groping for a level and reaching for economic stability that eventually must be at tained. There are numerous indica tions that bolster the truth of this assertion, despite all adverse develop ments to the contrary. As this is written the widely pressagented and already famous “ Genoa conference” is on the brink of the abyss and the odds are large that by the time this appears that it will have toppled with a noise that will rival the justly famous “ shots that echoed around the world.” Superficially this appears bad but son^e good has been accomplished, and it is well at this time to consider this angle. Through the deliberations of the statesmen and economists the people of Europe, who in the final analysis control the fate of kingdoms and kings, of fallacies and truth, have been given the straight facts as to what is wrong in Europe. Through publicity they have been made acquainted with the economic blunders, and the selfish politics that have been indulged in, some of which are still going on. The time is not far distant when the people will de mand that this be changed, and that Europe return to a sane economic foundation as rapidly as possible. As to the rest of Europe we have the testimony of Mortimer L. Schiff, of the banking firm of Kuhn, Loeb & Co., who outlined conditions on the other side to the Bond Club of New York that the investment banker's E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis must become better acquainted with what is ahead of them. The banker visited the leading European countries and he has this to say : “ France is recognizing that she must recede from her mandatory position as to reparations. England is facing facts with common sense, courage and clarity of vision. Germany is really hard up, although showing disinclina tion to face facts and not economizing to the extent she might. Russia is in LESLIE HANSON Leslie Hanson, who is known in the business world as W . L. Ayers, is New Y ork representative of the Chicago Jour nal of Commerce. He is an expert on investment matters, and a trained writer. He has been a contributor to the North western Banker for several years. s itiiiiiiiiiiiit iiititiitiiitiiiiiiiiiiim iiiiiiiiiiu iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiim iiiiiiiiiiiiiiiiiii the power of the soviet government and apparently is going to remain in that power for some time.” This is a tabloid summing up of the banker’s remarks, but he touches on the vital points in each country. He covered conditions in detail and con cluded by declaring that America can help but adding that the real crux of the situation lies in the relations between France and Germany and that is where the solution must be found. The writer talked to Mr. Schiff the day he returned from Europe. The truth of the matter, he said, is that France is afraid. She trusts no one in Europe, and is wary that Germany might strike any minute and she will find herself deserted. Diplomats the world over are endeavoring to allay this fear and to reassure France there is nothing to worry about as far as Germany. It is a task of no small proportions to wipe out distrust but some progress toward this end was made at the Genoa conference and more is being made each day. France wants to collect reparations and she should, but time must be given, as Germany has strained the printing presses to the very limit and an end less flow of paper currency without security is not doing any nation in the world any good. J. P. Morgan’s mission should be productive of results to this end. He has been in Europe presumably to ad vise on what security could be floated in the United States. But it is more than probable he is going to throw his influence toward getting the repara tions reduced, and if he succeeds in this it will be a big step in the right direction. A loan of one billion dol lars publicly sold throughout the world would put Germany on her feet, and what is more give France a good start in the right direction. The proceeds of such a loan would go to France as several years’ instalments on repar ations— perhaps more— which would put her in cash for reconstruction and budget balancing and by fixing a defi nite annual payment for Germany would permit the Teutons to open a set of books and set about balancing their budget. France wants to see the color of Germany’s money and when she does, even though it be only a half billion dollars, it is going to go far toward removing the distrust that now governs her actions. The French budget adopted a few months ago indicated a deficit of thir teen billion francs in 1922, allowing for 4,500,000,000 francs collected on (Continued on page 185.) June, 1922 THE N O R TH W E STE R N BANKER 29 Most Frequent Tax Errors of Bankers And How to Correct Them Material savings are possible by even a cursory review of tax transactions thus forestalling penalties and interest charges By H. Archibald Harris N W R IT IN G a tax article it is a sore temptation to cut off the highly technical ground into the nice elastic field of generalities. There is such a human side to tax matters of all kinds that one is very loath to deal with the dryer side, the question of just what errors are most frequent among certain classes, the way to correct them and other specific information. But I will deny myself the privi lege of expanding and will confine myself almost entirely in this article to information which has dollars and cents value to bankers. I Loss on Sale of Securities Here is one thing which is rather serious: No deductions for the loss of sale on securities after November 23, 1921, may be taken if it appears that within thirty days before or after the sale the taxpayer has ac quired substantially identical prop erty. An exception is made, how ever in favor of a corporation which is a trader or dealer in securities. A recent experience of mine par ticularly illustrates this point. D ow n the street a few days ago I met an old client. “ W ell,” he said, with what I fancy was a little smack of the lips, “ I have got a good plan to get away from my income tax.” “ H ow is that?” I asked him. “ W ell,” he replied, “ I had a cer tain amount of stock. I ordered my broker to sell it. The same day I ordered another broker to buy the same amount of stock. And, that night I had my own certificate back in my hands and I established a loss of $5,700.” Of course, I advised my friend that I thought this transaction would not pass muster. Such a deal would be looked upon with suspi cion by the government and will probably be classified by it as color able. Marked Down Securities Bank examiners have required banks to cut down securities to a nominal value. They have required that they be charged off in whole or in pa rt; that they be marked off or https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis iiimiiiimiumiiiiimiiiiiiimiiiiiiiiiimiiiimmitiiiiiitiiiiiitmiiitiiiniiifiiimiiiiiiiiimiitiiiiiiitiiiiiiiiiimimii H . Archibald Harris, author of this article, and President of the Indiana Association of Certified Public Account ants, is head of the firm Archibald Harris & Co., Certified Public Account ants, Chicago, counsellors on account ing and taxation for the Illinois Bank ers’ Association. Mr. Harris is therefore particularly familiar with bank tax troubles. Remem ber! Readers of the North western Banker are entitled to ask Mr. Harris any questions about accounting or tax matters. They will be answered without charge. revenue law allowing deduction for bad debts in whole or in part. This provision is too long to be discussed at any length here. But, it is d is tinctly to your advantage to review this provision in treating your bad debts. Consolidations Exactly how consolidations are treated under the new law does not seem to be clear to all bankers. Under the new law affiliated co r porations that have a taxable year beginning on or after January 1. 1922, may elect to file either sep arate or consolidated returns. There is no excess profits tax beginning with the first of the year, so it is immaterial from that angle, whether you file a consolidated statement. Of course there are, in some cases, good reasons why it is advisable to file consolidated statements. But this must, of course, be determined in the light of the situation in each case. But the main point is that if you have a fiscal year period ending in 1922, you must still file a consoli dated return. In other words, the first return on which you may exercise your option as to consolidation will be the re turn for the calendar year ended in December 31, 1922. H. ARCHIBALD HARRIS marked down. W hen the examin ers did that heretofore you could not deduct the loss. Under the new law you can. W hen the bank examiner does this you should get a statement from him which you can submit to the department, and when you sub mit that statement with your return, it is my opinion that it will go straight through and be allowed. Deductions for Bad Debts Another thing of which bankers are apparently not taking full ad vantage is the provision of the new Installment Sales Bankers are bothered a great deal in a tax way with installment sales. W hat is an installment sale? An installment sale is this: A small payment on a purchase is made to start with and the balance of the purchase price is distributed monthly, yearly or semi-annually. No negotiable notes are taken. But, a forfeiture clause to the effect that you can replevin that property in case they fail to pay for it is in serted. Then, you have an install ment sale. But the minute you take negotia ble notes for that property payable in those different periods, it is not an installment sale, because then you have something that you can realize on immediately. You could (Continued on page 186.) THE 30 N O RTH W ESTERN BANKER June, 1922 U. S. Radio Market News Service Is of Great Interest to Country Bankers By Caroline B. Sherman Assistant on Market Information, United States Department of Agriculture Telegraphic Market News Room, Washington, D. C. N O W Your Markets is the slo gan under which the United States Department of Agricul ture has brought its market news service to the doors of producers, shippers, dealers, and consumers. W ithout an adequate knowledge of the markets by all parties to a deal, satisfactory marketing and fair dis tribution of profits cannot prevail and without that the country cannot truly prosper. K That the federal market news may be unbiased and impartial it is gath ered straight from the sources by representatives of the government stationed in the large markets of the country and in commercial produc ing areas. Details of method dififer according to the community in volved. These reports are supple mented by those received from hun dreds of voluntary reporters, such as officials of rail, steamship and trans portation companies, county agents, marketing associations, distributors of agricultural products, warehouse men and manufacturers. This in formation is telegraphed to W ash ington where the market news of the entire country is compared, digested, tabulated and redistributed to all the agencies who have need for it. In this dissemination the depart ment has sought out and used every safe and practicable method known to it. Leased telegraph wires, mimeographed reports for quick local circulation, mail, newspapers, bank, and other institutions, and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Reporting the Live Stock Market for the News Service. now the wireless, have all been util ized. The first method followed, and the one still in greatest use by the parties interested in a large way in the various commodities, is the dis tribution of mimeographed sheets giving specific information regard ing the day’s market in livestock, meats, grains, fruits and vegetables, or other commodity, with mention of supplies, actual and potential movement, sales, prices, conditions in producing or shipping areas and on other large markets. Based on these reports various special services have been worked out to meet demands that repre sented large bodies of users. For in stance, practically all of the daily papers throughout the country now use the government’s livestock re ports especially prepared daily in Chicago for that purpose. The com mercial ticker service radiating from Chicago carries government live stock quotations. Weather, Crops and Markets, a weekly journal containing market reviews on both staples and perish ables, foreign market information and crop forecasts, estimates and production, was next established, then in a slightly different form and limited to market news. In narra tive style supplemented by tables and graphs, it places current market information in permanent form for current and for reference and study use. Basic and underlying causes are reported rather than temporary con ditions which make for fluctuation. The marketgram service was the first general news service relating to all commodities inaugurated by the department. The marketgrams are abstracted from the fuller news re ports and are issued in condensed form daily over leased wires to branch offices where they are sup plied to newspapers and all othe: applicants. This daily marketgram covers the week ending on day of issue. Now comes the radio news service in which interest is running high. Conditions regarding radio trans mission are changing so rapidly that predictions are to be avoided. The limitations are as yet uncharted and the possibilities seem boundless. Meanwhile the Department of A g ri culture is undertaking to establish the radio market news service on an efficient, reliable basis, aided by other government agencies and by a large number of state and private institutions. From the first, occasional bank ers, the country over, have taken keen interest in the federal market news service, realizing that it is val uable both to bankers and to depos itors. They have used it in their own work and have constituted val uable go-betweens in bringing it to the attention of producers and ship pers and analyzing and interpreting the reports in the light of local con ditions. June, 1922 THE Many of the research departments maintained by large banking institu tions to study economic conditions and the various factors affecting prices of commodities, are using fed eral market news. Last year a rep resentative of one of the largest banks in New Y ork City stated to the Bureau of Markets and Crop Estimates that the economists of his bank found the review of the live stock markets published in Weather, Crops and Markets the most reli able information as to livestock mar ket conditions published and that it was their intention to rely on his re view to a large extent in financing live stock operations. Smaller banks in rural districts are the national source of advice to farmers in business matters. The federal market news helps to keep such bankers in touch with nation wide conditions on the markets han dling locally grown commodities and their competitors. The banker, with his superior training and ex perience in such matters, is usually in a better position to analyze the N O RTH W ESTERN BANKER reports and make practical applica tion of them than is the farmer, al though the department makes every effort toward simplicity. One year the bank of Asherton, Texas, paid the long-distance telephone charges from Laredo on a brief summary of the day’s markets, received there by leased wire, which was posted at the bank and distributed by telephone to all who called up for it. During heavy seasons farmers usually call at the local bank frecpiently and mar ket information distributed through the bank usually carries greater weight in the farmer’s mind than when distributed through any other agency than the government. W estern bankers were naturally the most active in connection with the specialized services dealing with livestock, meats and grain, but it was a small bank in Virginia that first advertised its weekly receipt of the marketgram as a part of the bank’s service to its depositors and invited its patrons to call upon it for federal market information in per 31 son, by phone or by mail. Mention of this fact in a midwest banking journal bought twenty-five requests for the service from bankers within two weeks and now the distribution of the marketgram through banks is very wide. Banks were among the first to make requests for forms to take down the radiograms when the Bu reau of Markets and Crop Estimates began to send them out in an experi mental way in 1920. Banks are now receiving them regularly both through radiotelegraph and radio telephone and making use of them among their patrons. During the past two years it has been demonstrated as never before that the prosperity of our nation de pends upon the prosperity of its basic industries. The great problem in our basic industry of agriculture today is the question of marketing and distribution. Clear and accu rate knowledge of this phase of agri culture is essential to future marked improvement. Bankers Study Business Principles By Benjamin F. Anderson Economist Chase National Bank, New York W A N T to make a sharp criti cism of one phase of modern education that is doing a great deal to spoil the human mind. I mean the insistence that education shall be tested in the practice of the week follow ing the lesson, the insist ence upon getting something imme diately practical every time you go into the classroom, every time you read a book, every time you acquire a bit of knowledge. W e are accustomed to the propo sition that a thing is all right in theory, but that it is practically wrong. This involves a fallacy in the very statement. If a thing is right in theory it will work out in practice. If it w on't work out in practice the theory is wrong, the theory is incomplete, the theory is badly worked out, or the theory is based upon an insufficient amount of information. T ry it out in practice. If it w on’t work, revise the theory. If a theory is spun out of thin air and has no facts behind it, it is at fault both as theory and as the basis of practice. A theory that grows out of practice, checked against facts, revised in the light of these and other facts, a theory which final ly becomes an expression of a great I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis multitude of facts, is one of the most practically useful things that a man can have, because it is a shorthand that saves an immense amount of work. It embraces a multitude of facts. If you’ve got it, you’ve got the facts. Detailed methods of banking shift frequently. New devices and new methods which make for greater economy and efficiency are constant ly being devised. A textbook de scribing in detail the routine of a great city bank ten years ago might easily be very misleading today, but a good book on banking principles written forty years ago may easily be immensely illuminating today. The banker who has mastered principles is not confused by changing condi tions. Indeed, he welcomes new conditions ; they give him an oppor tunity to show his mastery of bank ing, an opportunity to prove his mettle, an opportunity to solve inter esting problems. I do not mean tc question the need for accurate de tailed knowledge of the job which one is doing. The banker must know the facts with which he works and must know them with accuracy and precision. But there are two ways of knowing fa cts: One may know them by sheer brute force of memory with tremendous exertion, or one may know them easily and adequately by seeing them hang to gether as the illustrations of a body of principles. The man who knows principles gathers facts easily, be cause facts have meaning for him. He chooses the facts which are sig nificant and he refrains from burden ing his memory with facts which have no meaning and are of no use. Except in the light of principle there is no way of telling which facts are worth while and which are not. Principles are labor-saving de vices. The busy banker, for whom study is, in any case, a difficult mat ter accomplished at odd hours and spare moments in the midst of heavy pressure, is the last man on earth who can afford to dispense with that greatest of all labor-saving devices— clear, theoretical, logical reasoning. The coming banker should be pre pared, better than the existing banker, particularly in the matter of public questions affecting business and affecting the economic legisla tion of the country. It means that he must theorize. He must know his economics. He must be able to analyze cause and effect. THE 32 N OR TH W E STE R N BANKER June, 1922 The Banker Gan Use Motion Pictures To Increase Profits The movies have become an important aid in selling in other lines of business and can readily be adapted to the needs of financial institutions By Watterson R. Rothacker President Rothacker Film, Company, Chicago A N K S are finding motion pic tures an effective weapon with which to continue the fight for thrift, a movement started during the war. Films have a faculty of picking a person right out o f his seat in the audience and placing him in the po sition of the shadow character on the picture screen. An experience of the shadow actor is the experience of a person in the audience— a lesson in thrift learned by the shadow actor is vicariously learned by those in the seats. A person reading a book will live through the thrills of the novel’s characters; an audience will share the joys and sorrows of performers in a spoken drama; but it is the silent stage, more than any other medium, that reaches out and removes a man from himself and places him in the places of the phantom beings on the screen. For an advertising film to increase bank deposits, some of the shadow characters should have the lesson of thrift driven home somewhat forcibly. O f course, the characters in the film story should not be put in an extreme ly terrible predicament. The policy of sunshine in the celluloid advertise ment is as good policy as in the printed advertisement. Film advertising ex perts, who really know, would not con jure a pack of wolves howling at the door in order to impress his characters with the vital importance of thrift. The wolves might be in the story all right, but they could be as clouds pre ceding sunshine. Here is a good bank advertising film plot: The opening scene shows a young couple bringing the recently launched matrimonial bark into the vine-cov ered cottage port after the honeymoon cruise. The audience soon sees that this couple is one of the many young couples who pay tribute to tbe land lord and who, in order to placate the Great God Front, place every cent of their income upon the alter of Appear ance. Next door resides another couple who have traveled consider B https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis able distance on life’s pathway. The ac prising number of persons will learn quaintanceship between these couples their lesson from the film— and obey becomes so close that one evening the closing title’s command, “ To open when the bride excitedly tells of the a savings account today.” The above story could be told in Grand Fur Coat she is going to buy on the morrow, the older woman is half a reel or five hundred feet of film. In the opening paragraph we state prompted to tell the story of a fur that banks are finding motion pic coat she once bought. The picture dissolves into scenes tures an effective weapon for which many years behind Father Time’s to continue the fight for thrift. Some banks are finding films so to be— but back. The older couple are pictured in not enough banks. The cost of producing a picture their honeymoon days. The bride is shown in a store “ shooting the family such as outlined above is more than wad” on a coat for which many seals the average bank should undertake. As it is, only the larger banks can af died. Some weeks later the wearer of this ford such motion picture advertising, beautiful coat returns from the mati but there is no reason why thousands nee to find Old Man Calamity has of banks in the United States should moved into the erstwhile happy— go not use the same film. The only rea lucky— home. Her husband has re son is this : There is no central agency through ceived an injury which will stop the family income for weeks to come. which the films are distributed to the Here is where the wolves begin to banks. The cost of such a picture to howl, and they can howl just as loudly a bank would be literally insignificant as they please— these are scenes of the if distributed among a thousand banks. past; our photoplay is still a thing of The American Bankers Association might become this distributing agency, sunshine. “ The price of that coat would have or it could be done very well indeed bridged the gap,” narrates the older by an enterprising financial paper woman. “ As it was, we were virtual such as “ The Northwestern Banker.” ly dependent upon the charity of rela tives. It took us a long time to get on our feet again, and when we did you can be sure we be gan to save. Then came a day when John had a chance to go into business for himself. Our nest egg in the bank made it possible. And now that John has succeeded in business I can have just as many fur coats as I wish.” In the film story, the young couple learn their thrift lesson f r o m the Room Where Developed Films Are Washed to Remove the neighbors, and in Hypo and Then Are Tinted or Toned to Give Moonlight, Fire and Other Effects the audience a sur June, 1922 THE N OR TH W E STE R N BANKER 33 At any rate, somebody ought to do it so as to capi talize the start made during the war. Motion pictures are ren dering valuable aid in con nection with the sale of pub lic service company bonds. One film was made re cently in order to enable salesmen who were to han dle bonds of the company to visualize the property con cerning which they would talk to prospective custom ers. Good bond salesmen Film Drying Room Where Developed and Toned Prints Are Wound Around Huge Drums, Which Revolve and Dry the Film In About Twenty Minutes all appreciate the necessity of impressing upon the A motion picture of the composite minds of the prospective customers a essary that the cameramen take 5,000 parts of the property impresses the picture of the property immediately feet of film. under consideration. The pictures were found to be so public with the true proportions of To have taken the salesmen over beneficial in educating the salesmen the enterprise and enables the layman to understand that a vast quantity of the property of this utility which cov that public exhibitions were afterwards money must be tied up in such public ers half a state would have been a given for propaganda purposes. The utility industry. Not only is this true very expensive, if not impossible, un public conceives of a public utility as of the popular impression as to overdertaking. The conclusion was there confined to the immediate community capitalization, but also as to the popu or locality and not as a great enter fore reached that instead the property prise serving numerous similar com lar impression of the earnings that should be brought to the men via the munities and covering vast areas of must be necessary to support so large an investment. motion picture method. territory lying between these commu The pictures of the public service To make this film the cameraman nities. company were shown in a number of visited many of the hundred-odd com An individual is often shown a bal cities and the results obtained were munities which the public service com ance sheet of a public utility company most gratifying. Where members of pany then served with one or more of and told that it has thousands, perhaps the public were unable or unwilling to such public necessities as electric light millions, of dollars of bonds and stock conceive the magnitude, strength and and power, heat, gas, water, ice and outstanding, and maybe often in financial requirements of an industry street and interurban car service. In formed that the company is vastly of such a character from seeing the order to pack a substantial portion of over-capitalized. Loose talk of un figures, they did obtain a proper esti the corporation’s holdings for ship friendly interests and unreliable pub mate of these characteristics when the ment via the “ Celluloid Rapid Transit” lications sometimes serves to accentu property was visually presented to them by the motion picture method. to the salesmen in Chicago it was nec ate this impression. How the Banker Must Sell Himself By John II. Puelicher, Milwaukee President Marshall Ilsley Bank Chairman Committee on Public Education, A. B. A . H E banker, unlike many busi about farm machinery, about how bankers, we feel that our business many bushels of this or that to the is one of the greatest in its benefits ness men, is '.concerned with the success of all groups of acre. But in one point he has to the public, making for their hap people. He is concerned with indi failed. He has talked with them piness and prosperity. Yet why vidual success, with community suc about their afifairs— farming prob does this happiness and prosperity cess, with national success. His lems— but not about his affairs— come to but a few and why is there success is contingent on the success banking problems— and banking is the misunderstanding in the mind of very much related to farming. The the multitude in regard to banks of all of these. and bankers. Because we have so The banker-farmer movement has farmer learned the A of the ABC poorly made known to the many, about investments when he bought marked a great era. The banker has the usefulness of our business to the liberty bonds and now he is caught interested himself in the problems of the farmer. He has aided in the by every fake promoter of fake se individual, to the community, to the state. The American banker has not furthering of agricultural courses in curities. the colleges ; he has provided him The justification for the existence been a good propagandist. He has self with literature, to be distributed of any business lies in its ability to not been a good publicist. He has among farmers. He has studied in order to be able to talk with his serve mankind, and on that basis not sold himself to the people of his clients about soil, about moisture, must we judge our profession. As community. T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 THE NORTH W ESTERN BANKE R June, 1922 Bird House Contest Attracts Youngsters As Well as the Grown-Ups By J. Clemens Erlander Cashier State Bank of Anoka, Anoka, Minn. H E Bird House contest for school children held by the State Bank of Anoka in March was one of the most successful con tests ever held by the bank in its thirty years’ history. Not only was the enthusiasm on the part of the boys and girls very gratifying — something like eighty bird-houses being turned in — but the public likewise responded gen erously at the auction sale which was finally held in order to give all a chance to bid for the houses they desired. Everyone of the houses was sold, the money being turned over to the individual builders. In this way each contestant was partly, at least, reim bursed for his trouble in making his bird-house whether it won a prize or not. The success of the contest was due in large measure, we believe, to the intensive preliminary work done. After the prizes had been decided upon, sixteen in all, ranging from $10 down to $1.00, totalling $37.50, we set to work typing letters to all the school teachers in Anoka and outlying districts. The same day that the advertise ment announcing the contest and prize list appeared in the local news papers, the letters to the teachers were mailed out, each enclosing enough duplicates of the advertise ment sufficient for each class. A few days prior to the mailing, one of our officers had the oppor tunity to say a few words regarding the contest to a gathering of teach ers. Their co-operation, which was freely given, helped us considerably. O f the announcement-registrationblanks thus distributed, 234 were filled out and returned to the bank before the close of the registration week. W hile only eighty of this number finally materialized to com pete for the prizes, we know that many more were actually built but their delivery at the bank prevented by bad roads and bad weather. As it was, so skillfully and artis tically were many of the houses made that the work of the judges proved a bigger task than we had anticipated. J. F. Painter, head of manual training work in the Minne apolis Public Schools, and Frank Gillis, of Anoka, conscientiously T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis spent several hours working out the prize list. And youngsters — the bank was full of them on Prize Day, all eager to know the results! Through the courtesy of the Craddick Service organization in person ally supervising the contest, we pro cured in Minneapolis two cages of canaries, which added no little charm to the display with their cheerful singing. W e placed them up on the balcony among the birdhouses and heard many comments on them as well as the bird-houses. Around the railing above the tel lers’ windows we had arranged a set of bird cards in colors. These also attracted considerable attention. Clubs and contests are a promin ent feature of our advertising and have brought us splendid results. Our All-Summer Flower Show held last year, with exhibit days about a month apart, proved very popular with the women of Anoka and vicin ity— the men, too, for that matter. Our B oys’ and Girls’ Calf club is also gaining in strength and interest every year. Wre are trying to make the State Bank of Anoka a genuinely helpful, community-building bank. If while maintaining a high standard of bank ing service, we can do anything to make Anoka a more beautiful and more interesting town in which to live, we are only too glad to do so. W e have always found our com munity efforts reflected back in a keener interest taken in even every day routine by our entire banking force, from president down to faith ful “ Jim,” who helps us clean up when the day’s work is over. State Convention Dates June June June June June June June June June June June June June June July Aug. Sept. Sept. Sept. Sept. Nov. 5-6-7 -daho .. . 6-7 Iowa . . . . .......... Davenport South Dakota . . Aberdeen 7-8 Washington ........ Spokane ■9-10 12-15 Michigan ................. Detroit 15-16 North Dakota .......... Minot 15-17 Virginia . . . . . Hot Springs 16-17 Utah . . . . Salt Lake City 17 Maine . .. 17-25 Wisconsin . . . . Milwaukee 19-21 N. York . Lake Placid Club 20-21 Minnesota .......... St. Paul 22-23 Illinois . . .. St. Louis, Mo. 22-23 Colorado . Glenwood Springs 17-20 Oregon .. .............. Portland 18-19 Montana 7 Delaware .......... Rehoboth 13-14 Indiana .. . . . . Indianapolis 22-23 N. Mexico ........ Las Vegas 26-27 Nebraska ................ Omaha 10-11 Arizona . ................ Bisbee Interior of State Bank of Anoka Showing Bird House Display. June, 1922 THE N OR TH W E STE R N BANKER oo Why Should the Young Prospective Banker Go to College? By Charles Franklin Thwing President E?neritus of Western Reserve University Member of the Board, Cleveland Trust Company N ITS large relations banking represents the business of the world. A bank is the clearing house of all kinds of manufacturing, commercial, financial processes and concerns. The debtor and creditor class meet in a bank. The material results of modern civilization— its foresight, w is dom, struggle, triumph — are most signifi cantly em bod ied in a bank. The material res ervoir, too, from which the ma terial forces of t h e civilization o f t h e future D R . T H W IN G can be most e f fectively drawn is a bank. The intimations of impending dis asters are here first felt. The meth ods for thwarting financial blasting and mildew, or for escaping finan cial tornadoes, are here elaborated ; method, too, for lessening the dam ages which these disasters may have already wrought are discussed and decided in a bank. Reciprocal rela tions of all forms of business, the re lations of the people to the government and of the government to the people, the relations of social class to social class, find their microcosm in a bank. When Matthew Arnold wrote that he had bought some Spanish, Italian, and Turkish stocks in order to keep his interest in modern history alive, he could have been assured that the same essential and comprehensive re sult might have been secured by his buying a few shares in a great bank. Therefore, whether it is expedient for the young man who proposes to be a banker first to go to college de pends largely upon his conception of the work which he desires to do in and through a bank. In case he is content to be a good bookkeeper, or an accurate teller, he will not find a college education of special worth to himself ; in case he desires to be a banker of large relations, he will find a college education, I venture to say, of very great value. The primary intellectual element in the value of a college education to a banker, as to most men, lies in the en I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis largement and enrichment of the pow er of thinking. A college education develops, or at least aims to develop, the power of seeing, of reasoning, of judgment, of comparison, of apprecia tion. The graduate is supposed to know truth— to know truth through knowing truths. He is able to have a comprehensive notion of his work. He sees the rela tion of part to part, of each part to the whole, and of the whole to each part. Its elements of strength and of weak ness, its points that require emphasis and elaboration, its points that require no care, its adjustments and readjust ments, its progress and regress— these and many other parts he is to consider. Financial schemes which have the sub stance of the “ South-Sea Bubble” he is to distinguish from undertakings that are as solid as the treasury of the United States, or the Bank of England. Such discriminations, in advance and on a priori grounds, it would seem to be easy to make; for a large gulf di vides the counterfeit from the gen uine, the inevitably disastrous from the assuredly triumphant. But experience, both recent and re mote, proves that not only the ordinary body of the American people, but also that part of it which is not ordinary, becomes easily and disastrously con founded in respect to financial theories and movements. The fact is that money represents one of the most difficult problems to which the reason of man ever gives it self. Trained in and through gen eral studies, trained in and through economic subjects, the college grad uate, becoming a banker, is often and distressingly mistaken ; but he would be mistaken with greater frequency and severer distress were he not a graduate. Several years ago, A. B. Hepburn, then vice-president of the Chase Na tional Bank of New York, whose re cent death calls out deep and common regret, wrote in answer to an inquiry of mine in reference to this very question, saying: “The young men who came to us later in their teens, after graduating from the high schools and grammar schools, make excellent clerks— among the best we have. “They are devoid of self-consciousness, go to the foot of the ladder unhesitating ly, are bright, keen, alert, and become competent and efficient clerks. Some of them, of broader capacity and ambition, study their surroundings and endeavor to master the principles of the business as a whole in which they form but a cog in the wheel, and in the course of time develop into capable, efficient executive officers. “College graduates possess no disadvan tages in comparison with high school or grammar school graduates as bank clerks, except perhaps the necessity of overcom ing their sense of self-importance. “Like all others, they go to the foot of the ladder and are compelled to work their way up through the grind. Some of them seem to feel a sense of impropriety in being put to work alongside of boys of fifteen. The later work in college is con siderably removed from the active mathe matical computation and the intellectual work that bank clerks as a rule are called upon to perform, so that the college grad uate requires some time to become as ex pert in the mathematical work imposed upon him, as the graduate of the high school, whose later years of study involve the very work his business calls upon him to employ. HThese two disadvantages overcome, the advancement of the college graduate is much more rapid. He is older, has learned to concentrate his thoughts, has a better and more efficient control over his intellectual faculties, has a broader and deeper foundation, and is bound in the end to far outstrip the high school graduate of equal ability and application. “I would unhesitatingly advise any young man who contemplates a banking career to graduate from college before taking up banking if his means and op portunities will admit of his doing so, “At fifty years of age he will find him self much further advanced in the busi ness world than he would have been with out his college training. In the matter of contact with other men, either personally or by correspondence, a college education is invaluable. It opens opportunities to a man all through his business career, and other things being equal, his superior education would give him preference in the selection of a person for official re sponsibility.’' One may be allowed to allude to an incidental advantage which the col lege man in a bank enjoys— an ad vantage which is indeed incidental to a degree, but one which in many in stances proves to be of great worth. I refer to the acquaintances which are formed in and through the college. These acquaintances represent the choicest part of the community. They represent the men who, twenty-five years out of college, are to be the pro moters and supporters of the great financial and other movements of the time. 36 THE The disadvantages under which the graduate entering the banking busi ness labors are chiefly three: (1 ) he begins his apprenticeship three or four years later; (2 ) he is in peril of not being willing to drudge; (3 ) he is liable to lack a certain mechanical swiftness, or dexterity, in dealing with figures. To these three points I wish to allude. O f course the graduate begins three or four years later than the graduate of the high school. The high-school graduate enters the bank at the age of eighteen, the college graduate at the age of twenty-two. But it is to be N OR TH W E STE R N BANKER said at once that the college man soon overtakes and soon passes the highschool man. A college does not make brains; it is supposed only to improve brains already made. But the argument is clear and solid that, in case the col lege man has as great intellectual ability as the high-school man, he will soon make up for the lack of experi ence, experience which the high-school boy has gained, and having made up for this lack, he will soon go ahead of him, and will continue going ahead of him by increasing lengths. The question which has been dis June, 1922 cussed has had relation to the college graduate becoming a banker. It has no relation to the larger question of his relations as a citizen. It has no relation to the range of his own en joyments or to the development of his own personal character. Those per sonal and larger relations are, of course, most significant and essential. In these respects, I suppose, no one can question for a moment that the college, whether it does or does not aid a man in making a living through banking, does aid him in making a large life for himself and for the community. Business Is Coming of Age By Dr. Frank Crane USIN ESS is coming of age. That is, it has about done standing around like an overgrown boy and apologizing for its ex istence. It has been snubbed, sneered at, and given the haughty o-o for several thousand years. All this time it has been, as it were, in its chrysalis. It is now coming out and finding its wings. In plain English it means that the business man everywhere in the world is realizing the im portance of his calling, is quietly assuming that dignity which is his due, and is about through with kowtowing and apologizing for being alive before that bunch of idlers we call Society, or that other ancient and honorable bunch we call Nobility. More young men are planning to enter a busi ness career in this morning of the twentieth cen tury than in any previous period of the world’s history. More young men are looking forward to becoming grocers, clothing merchants, railway managers, mining engineers and manufacturers of the things humanity needs, than the number of those contemplating what has been known as the more gentlemanly professions. And what is more significant, the girls are manifesting a decided preference for the young fellows in business over the young professionals. This is really a profound change. Time was, and not so very long ago either, that there was very little difference, socially speaking, between a merchant and a beggar, between the man that sold dry goods in the shop and the huckster that peddled knicknacks from a cart. They were all classified as being “ in trade.” Duchesses, milords and miladies looked on them as a sort of a lower order of creation. Education was not for them, and schools, es pecially universities, made no provision for their training. All the young fellow could learn at school was to he a gentleman idler, or one of the four professionals whose business it is to wait on gentlemen idlers, a lawyer to look after his prop erty, a teacher to instruct his children, a doctor to physic him, and a preacher to save his soul. That sort of thing is changing. W e are re alizing that a broad basis of general culture is as necessary for a wholesale hardware merchant or a manufacturer of steam fittings as it is for a man whose chief business is to play golf by day and gamble by night. The reason of this is that this is the age of democracy. Democracy is the big, new fact of the world and is rapidly bowling over all of the bunk that heretofore has imposed on mankind. And the first-born man child of Democracy is Business. It is the business man who, other things being equal, has the soundest notions of justice, because justice is the basis of all his operations, and the clearest notions of morality, because in his hands morality is intensely practical, and makes the best citizen and voter because government, after all, is nothing but a matter of business. Business is coming of age. C o p y r i g h t , 1922, b y D r . F r a n k https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis C ra n e. June, THE 1922 N O R TH W E STE R N BANKER 37 Country Bank Cost Accounting How to make a simple analysis of checking accounts in a small country bank By A. P. Howard Vice-President Hibernia Bank and Trust Company, New Orleans H E subject of country bank cost accounting should be di vided into two parts. First, the analysis of country bank ac counts on the books of city banks, and second, the analysis of individ ual, firm or company checking ac counts. It would appear that a better un derstanding of the method of analyz ing country bank accounts on the books of city banks would lead to a recognition of the mutual problem involved. There are several systems for analyzing these accounts, but the basis of all of them is deduct ing the amounts in transit so as to arrive at a net balance. A form pro vides for keeping the average daily balance by months, from which is subtracted the average balance in transit, easily determined by keeping the transit items day by day. From this average net balance for the month is deducted the ten per cent reserve required by the Federal Re serve Act, leaving what is ordinarily termed “ Loanable Funds.” A furth er subtraction is considered safe and conservative, although not absolute ly accurate, and that is, a ten per cent deduction for the purpose of estimating amounts outstanding at other banks. In this connection, it should be remembered that the state law provides for a reserve of twenty per cent, four per cent of which must be carried in the bank vault; also that the Federal Reserve A ct per mits a member bank to deduct “ Bal ance due from banks” from “ Balance due to banks.” Obviously some al lowance should be made for this calculation of the reserve. This would leave a net loanable fund, on which interest is earned by the discount department. The cost of handling the business is summed up in (a) interest allowed, (b) col lection charges, and (c) exchange charges. The sum of this will give the cost which should be exceeded by interest earned on net loanable funds added to two and a quarter per cent interest received on the ten per cent of outstanding funds at other banks. W e have thus arrived at the profit or loss of the country bank account, without taking into consideration the highly com plex analysis of general overhead expense T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of the department, taxes paid by the bank, salaries to executive officers, etc. In other words, for all intents and purposes, this calculation gives a sufficiently accurate analysis for the practical needs of the bank’s officers. The analysis of individual, firm or company checking accounts referred to above, can be made as complex The purpose of this article is to create a better understanding of the duties of the analyst. The country bank account is as valuable as the figures show it to be, and you can figure it as accurately as you please. The value of an individ ual, firm or company account depends upon the percentage of profit that it will earn. The field is open for com petition, you can determine whether or not your expenses are proportionately too great or too small, and the action to be taken as a result of such calcula tion is a matter that can be placed well within the scope of good banking prac tice. or as simple as you please. Of course, the analysis of these ac counts in a large bank with many different departments is entirely too complex to take up at this time. Suffice it to say that a consideration of the distribution of a bank’s over head is given in great detail on pages 642, 643, 644 of the March number of the “ Journal of the American Bankers Association.” The article is written by Dale Graham of the Mississippi Valley Trust Company, St. Louis, and a glance at it is con vincing as far as the magnitude of a detailed analysis is concerned. For ordinary purposes, a much simpler, and per se less accurate, analysis can be arrived at where the institution under consideration is a small bank with a cashier and five or six employees, or a branch bank, with a manager in place of a cashier. Even then, it must be assumed that some one is willing to see that the usual records are kept in such a way that the figures can be obtained. This simpler method might be termed a “ Gross Analysis.” Such an analysis depends upon averaging all of the earning deposits, and is shown by the following example of a six month calculation: Average deposits, saving..... $400,000 Average deposits, checking.. 300,000 Total...................................$700,000 Less average cash in vault..$ 20,000 Less 3% cash reserve on savings deposit................... 12,000 Less 10% cash reserve on checking deposits........ ..... 30,000 Total.................................. $ 62,000 Loanable funds ................. $638,000 7% on loanable funds......... 22,330 Office rent collected.......... . 200 Safe deposit rent collected.... 270 Foreign exchange profit____ 500 ..... Other profit accounts........... Total gross earnings....... $ 23,300 Salaries, expenses, insur ance, repairs, supplies, etc.$ 4,000 Losses .............. 100 Taxes .................. 1,200 Interest paid_____ ____ 4,700 Rent paid............................... ................ Total deductions............ $ 10,000 Net profit_______ ___ - ...... .$ 13,300 From this must be figmed the fol lowing percentages: Gross earnings to deposits......... 3.3% Net earnings to deposits........... 1.9% Total deductions to deposits....1.4% Y ou may say that it is not fair to charge against the percentages the interest paid on savings deposits when analyzing the value of check ing deposits, or the total expense of doing business when determining the value of savings deposits. As a matter of fact the differences must be carried to the third decimal place to be found at all, and to the fourth or fifth decimal place to be notice able. Besides, in the small bank it has been found that interest paid on savings deposits, where 3 % % is the basic rate, just about balances the extra cost of handling checking busi ness. Therefore the proportions have not been materially disturbed and we have a particular plan that works without a mass of detail. It is admitted that this system is not absolutely accurate, but it is submitted that a familiarity with this method of analyzing will give the basis for understanding a more detailed analysis, and, incidentally, the figures thus obtained will permit (Continued on page 148.) 38 THE N O E T J TW E S T E R N BANKER June, 1922 Human Interest Bank Advertisements Secure Attention and Bring Besults By John W. Gamble rice President First National Bank, Omaha r p i H E object of advertising is | to assist in selling merchan dise. There are, of course, some exceptions, but this is the gen eral rule. W ith this in mind, there fore, in the preparation of copy we must first strive for attention, second interest, third desire, and finally the actual making of the sale. A dver tising, as a rule, of course, does not go as far as salesmanship, as it is more or less supplementary to it, and if it attracts attention, creates inter est and arouses some desire for the thing advertised, it is presumed to have done its part in thus paving the way for the salesman. I have heard very many people make the statement that bank ad vertising differs from other advertis ing, and many people have the idea that financial copy is a vague some thing that must be prepared in a special way. Human interest finan cial copy should bring the same re sults as human interest copy of any other kind. In a series of advertise ments that the First National Bank of Omaha has been running for some time, and which has attracted un usual attention, we have had in mind simply the foregoing. It so happens that the history of Omaha is very intimately associated with the history of the First Na tional Bank. The origin of this in stitution goes back to the days of steamboats, stage coach and Indian troubles. W e decided that, from the standpoint of interest, the historical series of ads connecting the bank with the growth of the city, would not only attract attention and cre ate interest at the same time, but by weaving into the story something of the aims and policies of the bank, the stability of the institution and its dependability in times of stress would be very clearly shown. W e took, therefore, for our sub jects, such things as the visit of Abraham Lincoln in 1859, the story of steamboats on the Missouri River, the building of the Union Pacific Railroad, the first Omaha horse-cars, dating back to 1867, Indian troubles in 1859, and other subjects of similar nature. It happened that in prepar ing the data for many of these ads we discovered that some of our offi cers or directors had been the m ov ing spirit in many of these enter prises ; for instance, at the time the Stock Yards Company was formed, the president of our institution was active in the formation of the com pany; the grandfather of one of our present vice presidents was elected a councilman at the first election A few of the historical advertisements used by the First National Bank of Omaha. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 T H E ever held in Omaha, which election was held the year the First National Bank was fou n ded; one of our di rectors was one of the speakers on the occasion of breaking the ground for the Union Pacific. Judging from the comment re ceived on this series, and from the business that was directly traceable to it, this class of advertising made a very strong appeal to the public. In bank advertising, just as in any other advertising, it is not the casual ad that brings results— it is the con stant pounding. Those of us who are actively engaged in bank work very frequently fail to realize how little the general public knows about the actual workings of a financial in stitution or the ways in which it may render service to the average depos itor. A fruitful source of advertising N ORTH WES T ERN material may be found by getting be fore the public in an interesting way, the functions of the various depart ments, particularly of a large finan cial institution. The sooner bank advertising is put on the same basis as general business advertising, the sooner it will demonstrate to the skeptic that bank advertising pays, particularly in times like these, when informa tion sent out from the bank, whether in the form of a monthly letter, a circular letter, an ad, or whether pre sented in the form of window display, is eagerly received by the general public. It is very essential in order to make the advertising attractive, that those charged with its preparation have the outside viewpoint, as well as a thorough knowledge of the workings of the institution itself. The Old Time Banker Never Solicited an Account By Hugh Rogers HEN I entered the bank as a youngster, more than for’ ’ ty-nine years ago, it was not considered ethical to solicit new business in the way it is done now ,” says F. P. Schreiber, former cashier of the Union Trust Company of Chi cago, who recently retired after a long and distinguished career as a banker. ‘‘This is orie of the many noticeable changes in the banking business during my connection with it. “ True, in the old days statements were published to conform with the banking laws. But to walk into a man’s business office and solicit his account was unheard of, and left a bad impression in the mind of the person solicited. From time to time, however, all this was changed and public opinion soon fell in step, and banks began to expand and grow .” Mr. Schreiber believes that the present way of soliciting business is preferable to the old, and that our present ethical standards are higher. “ In my opinion,” he goes on to say, “ no bank could make progress unless a certain amount of advertis ing and solicitation was given to the public from time to time. “ I look back on my forty-nine years banking experience more and more as a continuation of my school day studies, because the-e are, and perhaps always will be, new angles in the banking business to replace in a measure those which have been put into the discard of former years, UTT t VV https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39 BANKE R other departments, all under man agement of competent heads whose assistants of necessity come from the ranks of employes, and who later may be chosen as executives and continue to larger fields of activity and work. In my estimation the op portunities are very much greater now for a young man than fifty years ago. “ Knowledge acquired in small banks in Iowa or other middle west ern states would help to bring out talent, especially so when employed by larger city banks, or money cen ters. But the live wires would sure ly get to the front or ‘firing line’ as we call it, while the drones are sleep ing, gathering up just so much ‘honey’ (or knowledge) to drift along and ‘get by,’ as the saying goes, and unless a young man has plenty of ambition and stick-to-it-iveness a small town would best apply to him. “ There are now bigger and better chances than ever to gain the top of the ladder, and the boy or man who starts at the bottom, absorbs the knowledge which comes to him daily, I might say hourly, cannot but suc ceed.” Banking for Young Men By IV. A. Clark President Montana Bankers' Association. F. P. SCHREIBER for banking practices have certainly made great changes during my time.” The opportunities for a young man in banking are much greater today than at any time in the past half century, this veteran banker be lieves. “ W e now have additional depart ments, such as trust, fiscal agency, investment, safe keeping, foreign and In answer to your question con cerning my opinion of the banking profession for a young man I would of course have to base an expression of opinion on this subject to some extent upon the conditions that might exist. I know of no profes sion that appeals to me more strong ly in the interests of active young men than is presented by the bank ing profession. It will be necessary, however, to have some expectations so far as finances are concerned, as that is one of the essential features of the foundation for successful banking. Usually when a youngman starts out in life with determi nation and ability he can work his way along even without much means until he is able to provide these, but it is not always an easy road to travel. No matter how one might be talented it becomes neces sary to secure a reasonable amount of capital before lie can accomplish much. Y ou are publishing a very credit able journal in the interests of the profession. Men who know the same things are not long the best company for each other.— Emerson. 40 THE N O R TH W E STE R N BANKER June, 1922 How the Modern University Trains Future Bankers and Business Men X II. DARTMOUTH COLLEGE By W. R. Gray Dean Amos Tuck School of Administration and Finance, Dartmouth College, Hanover, N. H. H E establishment of the Am os Tuck School in 1900 as a grad uate department of Dartmouth College was generally looked upon as a pioneer step of far-reaching sig nificance. Coming from an institu tion holding tenaciously through a hundred and thirty years to the New England tradition of liberal educa tion, the creation of the new school raised questions which have since engaged the minds of educators and business men throughout the coun try. Instruction in business admin istration is no longer merely experi mental, nor is its value questioned. Business training in institutions of collegiate grade now has standing not only with thousands of students, but with the ever-growing number of business organizations that each year quickly absorb the graduates of schools of commerce and business administration. What, then, were the considerations which led to the action of the trustees of Dartmouth, and what have been the distinctive aims of the school in the twenty-two years of its active work? T The trustees had taken frank note of certain developments both in the world of business and in college life. The pursuits of business had become enormously complex. New methods and new points of view were sup planting the old. Business manage ment was taking on many of the at tributes of a science, and a literature of business was making growth. The code of commercial ethics— at first chiefly responsive, perhaps, to the pressure of law, but always reflect ing the common business conscience — was shaping itself to the new de mands of the time. Even then it was becom ing more and more diffi cult for the liberally trained college graduate to enter business without suffering the penalties of his unpre paredness for meeting the exactions of the new regime. Yet college men in ever-growing numbers were turn ing, and have continued to turn, away from the time-honored profes sions and toward the fields of com merce, industry and finance. T o Edward Tuck, international banker and financier, graduate of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dartmouth in 1862, the trend of the time and the problem of the college presented an opportunity. The plan to establish a school of business, with the status of a graduate depart ment and the standards of a profes sional school, had the appeal of more than a worthy project; it was a proj ect calling for liberal support. Through his generous gift, therefore, the trustees were enabled to estab lish the school which bears the name of the donor’s father. By further gifts, Mr. Tuck made provision for the erection, equipment and main tenance of Tuck Hall, a building ad mirably suited to the uses of the school. From the first, the aim of the school has been “ to prepare men in those fundamental principles which determine the conduct of affairs.” The policy of the school has had con stant regard, also, for certain g ov erning considerations. It has always been committed to the principle that the breadth of interest and the prep aration for intelligent citizenship for which the liberal college course of fers abundant resources, are funda mentally desirable in the kind of training for business leadership in which Dartmouth is primarily inter ested. For this reason, a bachelor’s degree or at least three years of col lege work are required for admission to the full two-year course leading to the degree of Master of Commer cial Science. In the second place, it is assumed that in order profitably to pursue business studies, a student must form the habits of mind and work that underlie clear thinking and sound judgments. T o gain admis sion and to maintain standing in the school, he must therefore demon strate his ability and readiness to do thoroughly good work. These re quirements are but expressions of the belief that the firmer and broader the foundation, the greater in scope and soundness the superstructure may be built. The school is, of course, interested in providing a business training that shall be practical in the broadest sense of the world. It is primarily interested, for example, in preparing men for rapid advancement to posi tions of executive responsibility. It is concerned more with the long time value of the training afforded than with the immediate results. It believes that a thorough under standing of fundamental principles and their practical bearing on prob lems of management promise more in terms of personal usefulness and opportunity in business than is promised by concentration on the at tainment of technical skill or highly specialized knowledge within a re stricted field. The business records of graduates and the testimony of their employers have confirmed the school in these convictions. This is interpreted to mean that what is needed to train men for one business differs less from the re quirements of other fields of busi ness than has commonly been as sumed. In general, most of the de tails of fact and routine peculiar to a given business may be learned more readily and effectively through actual experience than they can be learned in any school. But it grows ever more difficult for a man to get from practical experience the grasp of the broader matters of policy and to develop the powers of judgment which alone make it possible for him to rise to the responsibilities of man agement. It is at this point that the school of business may serve the same purpose for men preparing for commerce and industry, that other schools have served for men enter ing the older professions. Just as in the professions, moreover, all business activities have common problems and are subject to estab lished laws and principles. The man who is broadly and soundly pre pared in these fundamentals is best prepared to assume and discharge the larger responsibilities that come to him in the normal course of his experience, whatever business he may enter. Out of the experience of years, therefore, the curriculum of the Tuck School has been built upon and around basic facts and principles. The plan of instruction thus assumes June, 1922 THE that the functions of production, or operation, of distribution and of finance are inherent to the conduct of any business. Certain other com ponents of administration, such as ac counting-, statistics, business law and the management of labor, are con sidered also to have an essential place. T o ensure breadth of reach and outlook into the wider range of American business interests, a knowledge of the markets and re sources of foreign countries and the commercial usages of foreign lan guages is given important weight. On these grounds, groups of required courses, designed to afford thorough instruction in these subjects, consti tute a substantial part of each stu dent’s plan of work. In addition to the general training afforded by these required courses, each man may elect courses which bear more directly on the particular business activity for which he has decided to prepare himself. Still further means of giving him an intimate insight into the particu lar activity in which he is especially interested is afforded by the require ment of a thesis based on the ex haustive study and proposed solu tion of an actual business problem. For this purpose, the men go to first hand sources, preferably the plants or offices of business concerns, and there draw upon actual operating facts and conditions for the data from which their theses are devel oped. For the most part, these prob lems are of the type which ordinarily engage the attention of executives and call for the methods of approach and the judgments of practical man agement. It is not unusual for the results of thesis work to be utilized and put into effect by concerns that have opened their plants for such studies. Throughout the work of instruc tion, the endeavor is made to hold before the student the realities with which, as a business man, he will be confronted. The subject matter of courses, in large measure, is pre sented in terms of problems and sit uations drawn from actual business experiences. The services of busi ness men of wide outlook and repu tation are enlisted to co-operate in the work of instruction. The stu dent is expected and aided to find employment during vacations and by this means to acquire the point of view and sense of practical values which can be gained only through contact with a going concern. Aside from the direct, lasting ben efits which he may derive from a comprehensive, unified curriculum in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O R TH W E STE R N BANKER business administration, there are certain less tangible by-products of his course that the aspiring student may find later to have as real a value and as weighty an influence as all he has derived from his regular courses of study. One of these is that he is likely to make an intelligent choice of the field of business with which he will cast his lot. Another is that he will gain a clear understanding of how much business will demand of him and how much he must give be fore he can expect to receive the re wards which business holds out to him. Still another is that he will come to realize that, far more than ability or influential connections or educational equipment, his attitude, his sense of proportions and his power of sustained enthusiasm and loyalty will determine the range of his progress. T oo many college men turn to one or another branch of business on the basis of the most superficial informa tion and for the flimsiest of reasons. One man lets father decide— and fa ther is often the poorest judge of son’s fitness. Another goes in for the business which seems to have the greatest appeal in terms of money, regardless of how distasteful to him that business is bound to prove. In short, too many overlook the first and most telling essentials to a wise selection of a life work. The Tuck School, therefore, assumes that not the least important of its responsibilities is to encourage each man to inform himself as to the re quirements of the various activities of business and to appraise them in 41 the light of his own aptitudes and tastes. It is recognized that most men must enter business as beginners in subordinate positions and that the question of salary in the early years is of small moment as compared with opportunities to learn a business from the ground up. From such a point of view, students are expected to look upon their work in the school as a preparation, not as a substitute, for practical experience. A school of business may offer its students a well-equipped plant, a well-balanced curriculum, a fine library and other highly wrought agencies of instruction. But unless there is a teaching staff, fully equipped by training, experience and intimacy of contact with the active affairs of business, to teach some thing more than the bare facts and abstract theories of business, that school falls short of establishing its reason for being. On this principle, the faculty of the Tuck School has been recruited and developed. The staff includes men who have records of successful executive experience in business. Other members of the fac ulty have supplemented their educa tional training with first-hand study and participation in active business. Out of the relations thus established has resulted a growing demand for the services of instructors as ad visors and consultants to business organizations. As in other schools, such relations operate both to raise the professional status of the staff and to provide the surest means of improving the quality of instruction. 42 THE NORTHWESTERN BANKER New Chicago-Omaha Short Line Highway Is Historic Route By Robert N. Carson C O N F E R E N C E was held in Des Moines last month to con sider the organization of a di rect highway route between Chicago and Omaha to follow, most of the way, the air mail route between Chi cago, Iowa City and Omaha, and to touch the largest cities between these points. It is planned eventu ally to develop a paved highway from end to end. There were over one hundred rep resentatives present at this meeting from various towns along the route. Preceding the meeting a luncheon was served by Hotel Savery III and numerous prominent speakers e x plained the many advantages of the route selected, which parallels the Lincoln H ighway from Chicago to Galt, thence the Rock River Valley Route to East Moline and Daven port, the famous River to River Road from Davenport to Des Moines and the Great W hite W ay from Des Moines to Omaha. Thus Primary Road No. 7 is followed from D aven port to Des Moines and Primary Road No. 2 from Des Moines to Council Bluffs. The route is nearly a direct air line from Chicago to Omaha. The mail planes carrying the Frisco-New York mail land at Omaha, Iowa City and Chicago. The Chicago-Omaha Short Line H ighway is a trifle over 500 miles long and if the air mail planes flew into the city of Chicago instead of as far as the Checkerboard Field, 12 miles west of Chicago, the air mail distance would be 434 miles. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Chicago-Omaha Short Line Highway is between 25 and 30 miles shorter thany any other automobile route between Chicago and Omaha. The finest free bridge crossing the Mississippi River is at Davenport and owned by the government. At Iowa City, the big State University is an interesting place to visit. Tw enty miles west at Homestead are the famous Amami Colonies cover ing 27,000 acres and many villages therein. Grinnell has a lake for boating, swimming, etc., and is the home of Grinned College. Newton is noted for its wonderful washing machine industries. Colfax is known for its mineral water. Des Moines is the great capital city of Iowa with superb hotels, drives and beautiful homes. No tourist crossing Iowa should miss a visit to the capital city of Iowa. The first railroad built in Iowa was from Davenport to Iowa City in 1856. This was the natural chan nel of immigration and from Iowa City west to Omaha stage lines were operated and now follows, many years later, this project for a direct hard surfaced highway over the same trail our forefathers traveled scores of years ago. The noted pilot and pathfinding automobile scout, A. L. W estgard, selected this same route in crossing Iowa with a large party of automo bile tourists in 1911, piloting them from New York to Frisco. Then the big Glidden Tour followed the same route in crossing Iowa. Later June, 1922 a road race was staged between Davenport and Omaha over this route. This was December 28, 1912, and the average speed of these cars was 38 miles per hour. Leaving Davenport with their headlights lighted at 6:15 in the morning they ate up space and arrived in Omaha shortly before 5 :00 o’clock p. m. Truly the Chicago-Omaha Short Line Highway has a history, made in the early days of motor travel. The River to River Road, which it follows, was a pioneer trail, likewise the Great W hite W ay, between Des Moines and Council Bluffs. Such men as Ex-Senator Lafayette Young, father of the River to River Road, and Hon. Geo. B. Lynch, of Adair, the father of the Great W hite W ay, have made road history in Iowa in their ambition to build and mark highways worth while. Judge Lynch is vice president of this new organ ization. He is still active and along with other men connected with the project will make this highway a dis tinct success. The officials of the C-O Short Line are Dick R. Lane, president, Daven port; Geo. B. Lynch, Iowa vice president, A dair; J. S. W hite, N e braska vice president, O m aha; M or rison H. Vail, Illinois vice president, Dixon, 111.; Robt. N. Carson, general manager and secretary, Iowa City. Mr. Carson is also the originator, president and manager of the Red Ball Route, St. Paul to St. Louis. J. Ervin Evans is treasurer of the C-O and cashier of the Johnson County Savings Bank, Iowa City. There is a county director in each county through which the route passes. A man’s task is always light if his heart is light.— Wallace. June, 1922 THE NORTHWESTERN BANKER 43 Listening In on Market Reports and Concerts Is New Bank Activity The practicability of radio receiving stations is being demonstrated by scores of country and city banks in the middle west By Donald II. Clark HE hour is seven thirty in the evening, and the staid old First National Bank, which used to lock its front doors at four o'clock sharp, is host to a crowd that fills the space in the lobby and overflows in the “ directors’ room” at the rear. The young assistant cashier is at a table in the rear tuning up the new radio in strument for W W J. There is an expectant hush over the crowd of men, women and children, as a whistling noise comes from the “ phonograph horn” magnavox. “ Detroit News Radio Station,” says the voice from the horn. “ Baritone solo, by R. M. Parsons.” The concert which then commences, is followed with breathless interest and gathers more laughter and ap plause than the five-reel thriller at the movie house down the street. An hour later Cashier Smith makes another adjustment, and the beauti ful strains of a symphony orchestra float out from the instrument. At the end of the number, there is the an nouncement : “ Des Moines Register Radio Sta tion, broadcasting concert by St. Louis Symphony Orchestra.” The concert that night a few weeks ago was the first of many, and it marked a new period in the history of the old bank. Just as in the past it had been the financial center of the community, it now became a social center. The evening concerts attracted many who had not before been at home in the bank, and it afforded new pleasures for all the people of the community. Radio is here to stay, and the rapid strides which have been made the past few months in the perfecting of send ing and receiving equipment, assure us that what is now a fad will soon be an essential part of our life, as com mon and as necessary as the telephone and telegraph. Half a hundred banks in the middle western states have already installed receiving outfits, or are about to do so, and one bank at least, the Minne sota Loan & Trust Company of Min neapolis, has arranged to broadcast every week day essential news of the stock and bond markets, grain quota- T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Northwestern Banker first pub lished an article on bank radio outfits in February, 1922, telling of the station installed by the Reinbeck State Bank at Reinbeck, Iowa. So great was the interest among readers of the magazine that many letters were received by the bank and by the Northwestern Banker asking further information about radio. This second article tells of the experi ences of several country banks that have installed stations. A third article w ill be published in a later issue. The editors of the Northwestern Banker are anxious to hear from other banks that have radio equipment, and would like to know just how the service is used by the hank. .. it m11111111111111 tions, and resumes of market activ ities for the benefit of banks in the territory. Such service, in addition to the radio news service of the United States Department of xAgriculture, and the daily concerts of the De troit News, Des Moines Register, Uni versity of Wisconsin, and other send ing stations in the middle west, make a bank receiving outfit a very prac tical and worth while investment, and one that will give much enjoyment to the people of the town and county. Radio equipment of the State Bank of Nelson, Nebraska. “ W e purchased our radio outfit about six months ago after ‘listening in’ on an outfit that was then in use at the Scroggin and Company Bank at Oak, Nebraska, as we could readily see that it would be a great help, both to our farmer customers and our selves,” says E. E. Murphy, teller, State Bank of Nelson, Nelson, Ne braska. “ W e get daily market reports from the Omaha Grain Exchange, State University and Wesleyan University, at Lincoln, and hope in time to be able to tune in on the market reports that are sent out from Kansas City. These reports together with the weather re port and other late items of interest are posted on a bulletin board in the bank lobby. “ W e also get the time sent out from Arlington, W . Va., and Great Lakes Station, Rockford, Illinois, and vari ous other places, also concerts from the stations at Pittsburgh, Denver, In dianapolis, Slater, Missouri, different points in Texas and New Mexico, Wisconsin, Michigan and in fact from points in every section of the United States. “ W e are able to pick up code mes sages from different stations in Eu rope, ships at sea as well as from points in this country. “ W e have been unable to get a magnavox to go with our outfit so far and so have rigged up an old phono graph horn which answers the purpose very well as any one in the room is enabled to hear anything that hap pens to be coming in. “ The station has been a great help to the farmers and stockmen around here as we have dozens of calls daily inquiring about markets, weather, etc. “ W e have a receiving outfit only at the present time. W e have three types of aerials but so far have found that the outside aerial gives us the best service. Our outdoor aerial is made from two strands of copper wire one hundred feet long. The indoor aerial is wound with eight hundred feet of small gauge copper wire. The small aerial that we use is in a box about four by eight inches and it is neces sary to connect this one to the regular 44 THE electric light socket. This one also gives very good service. “ Our outfit cost us about $235.00 without a magnavox but of course an outfit that will receive from less dis tance than ours will, may be pur chased for much less. “ As to the advertising value of a radio outfit we believe that this has been a very profitable investment and has given us more publicity than any other advertising that we have ever done.” The Bank of Southern Wisconsin at Janesville, Wisconsin, installed an ap paratus early in March, and has been giving weather and market report service ever since. “ The complete outfit for receiving cost us about $230.00,” explained President J. W . Dady. “ The erection of the aerial is in addition to this, but the cost is not great, and it varies with the place it is erected and the height. If you are fortunate enough to be lo cated on a hill, the matter is very sim ple ; but it is not a difficult task even in a valley. “ W e have a receiving outfit only. The sending outfits are more expen sive, and impractical for a small sta tion. “ W e believe the publicity resulting from this service more than pays for it. It is a sign of progress, and it shows a real effort on the part of the bank to give additional service to its patrons. It is especially good in a small place where the lines of com munication are not as efficient as in the larger places. The wireless oper ates just as well, in fact, better, in some isolated spot far from telegraph lines and railroads. The small in land country bank would reap the greatest benefit, but all banks can use the service to increase the interest in thier institutions.” W . H. Babcock, cashier of the Waverly Savings Bank, Waverly, Iowa, has a receiving set in his home which he uses for amusement princi pally. He also gets Chicago live stock market reports daily from Madison, which he posts in the lobby of the bank. “ My set is a Westinghouse,” he says. “ I also have an amplifying ap paratus known as a Magnavox which I sometimes attach and we are able to hear programs about as loud and distinct as we do a phonograph record on our Edison. I have a battery charger which I attach to a lamp socket in the basement which enables me to keep my two, six-volt storage batteries in condition. The entire cost was $287.00. “ The market reports I post in the bank are proving quite interesting to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O RTH W ESTERN BANKER June, 1922 Important Radio Station The following are a few of the more important sending stations that can be heard readily in the middle west. Market or weather reports are sent out at 485 meters wave lengths; music, concerts, lectures, etc., at 360 meters. Location Austin, Texas........ Canton, Ohio.......... Chicago, 111............ Chicago, 111............ Chicago, 111............ Columbia, Mo........ Dallas, Texas......... Dearborn, M ic h .... Des Moines, Iowa. Des Moines, Iowa. Detroit, Mich........ East Pittsburg, Pa Fort Worth, Texas Jefferson, Mo........ Madison, W is ........ Manhattan, K a n ... Minneapolis, Minn. Minneapolis, Minn. Minneapolis, Minn. New York, N. Y . . . Newark, N. J ........ Norfolk, V a ............ St. Louis, Mo........ Urbana, 111.............. Owner of Station Call Signal University of Texas...........................................................WCM Daily News Printing Co.................................................. W W B City of Chicago...................................................................WBU Union Stock Yards & Transit Co..............................WAAF Westinghouse Elec. & Man. Co.................................... K Y W University of Missouri.................................................. WAAN City of Dallas.......................................................................WRR Ford Motor Co..................................................................... W W I Iowa Radio Corporation.................................................. W H X Register-Tribune Co...........................................................WGF Detroit News........................................................................ W W J Westinghouse Elec. & Man. Co.................................... KDKA Fort Worth Record.............................................................WPA Missouri State Marketing Bureau................................WOS University of W i s c o n s i n ............................................. W H A Kansas State Agricultural College..............................WTG Findley Electric Co. (Minn. L. & T .) ..........................WCE Tribune and AndersomBeamish Co............................W AAL University of Minnesota.................................................. WLB Ship Owners’ Radio Service.......................................... WDT Westinghouse Elec. & Man. Co...................................... WJZ Ship Owners’ Radio Service.......................................... W SN St. Louis Chamber of Commerce................................W AAE University of I lli n o i s ................................. ; ................ WRM our customers, but the main purpose of my purchase was the amusement we get in our home.” The sending station of the Minne sota Loan and Trust Company, Min neapolis, is explained as follows by W . E. Brockman; “ Several weeks ago it occurred to us that the radio could be utilized to a distinct advantage not only as a means Bank of Southern Wisconsin Station. of publicity for ourselves but as a means of disseminating important in vestment information throughout this territory. W e have incurred no ex pense with the exception of newspaper advertising as the Findley Electric Company, which owns and operates our broadcasting station, was anxious enough to cooperate with us as this would give them the value of adver tising their name. “ W e are now broadcasting a gen eral market and investment service twice daily at 10 A. M. and 4 P. M., which includes bond and grain quota tions, livestock and crop summary, Liberty bond prices, foreign exchange, and the general trend of the market. The afternoon program is a general summary of the market activities giv ing opening, high, low and closing market prices. Up to the present time, The Minnesota Loan and Trust Company is supreme in this field, hav ing established the first radio broad casting service for banks and now maintains the only twice daily broad casting service. “ Indications are that this type of service will greatly aid banks in small er towns to keep in touch with the market situation. A great deal of in terest is being manifested by financial houses in outlying districts and judg ing from the number of communica tions which we have had with refer ence to our service, we believe that it will be just a matter of time before the principal banks and investment houses within a 300 to 500 mile radius of Minneapolis will be taking advan tage of the service which we are send ing out. Through our direct leased and private wires which keep us con stantly in touch with New York, Chi cago, and other financial centers, we are able to broadcast information at 4 o’clock which heretofore has not been (Continued on page 112.) June, THE 1922 N OR TH W E STE R N 45 BANKER WIDE AWAKE BANKERS ARE INSTALLING RADIO PHONES Be the First In Your Community to Have One—Do It N ow RADIO BROADCASTING To own a Radio Receiving Set is to have at your command a source of entertainment of infinite variety and a service of news, weather, crop, and stock reports, intimate and exhaustive details of great sporting events, and even complete church services. The programs of the great Radio Broadcasting Stations include entertainment hy in dividual and grouped artists of the musical and theatrical world, speeches by famous public men and women, play-by-play reports of all kinds ol sporting events, children s bedtime stories, and many special features which are being arranged. Such programs as these have changed the meaning of radio to the average man from a toy to a real and vital part of his home life. To appreciate the significance of this statement, it is but necessary to listen to one broadcasted program. Westingliouse Receiving Sets are designed especially to receive Radio Broadcasting. Aeriola Senior $75.00 R A D IO B R O A D C A S T IN G ST A T IO N S A e r i o l a S r. is e a s i l y p o r t a b le , a n d h a s a v e r y s m a ll upkeep. Its w ave le n g th r a n g e is f r o m 190 t o 500 m e t ers. T h e s e t in c lu d e s th e R e c e iv e r , an A e r io tr o n d e t e c t o r tu b e , a p a ir o f h e a d p h on es, a 22% v o lt b a tte ry an d a d r y b a tte r y , a n ten n a o u tfit, a n d in s t r u c t io n s f o r in s t a llin g a n d o p e r a t in g . East Pittsburgh, Station “ K D K A ” ------------------------------------------- 360 Newark, N. J. Station “ W J Z ” -------------------------------------------------360 Springfield, Mass., Station “ W B Z ” ------------------------------------------- 360 Chicago, 111., Station “ K Y W ” ------------------------------------------------- 360 Detroit Station, “ W W J” ----------------------------------------------------------------360 Des Moines Station “ W G F ” -------------------------------------------------------- 360 Meters Meters Meters Meters Meters Meters U. S. Government Broadcasting Stations and numerous other stations located in prac tically every large city. W e especially recommend the follow ing set, easily installed, and results from which are most satisfactory. WESTING “ R C ” RECEIVING SET Consisting of a single circuit tuner and a three tube, two-stage de tector-amplifier, three vacuum tubes, a loading coil, dry batteries, a storage battery, cord and battery clips, head phones, plug adapter and a complete antenna outfit. Distant radio telephone, amateur and ship stations may be received at any wave length within its range of 180 to 700 meters. Price, complete, $202.50 The loading coil allows the reception of signals on 1800 to 2800 meters wave length. Messages may be received on either the detector alone, or one or two stages of amplification by simply changing the head phone plug connection. The RC Receiving Set has the advantage that loud-speaking devices may he added if desired. For this pur pose there are the Westinghouse Victrola or Grafonola attachments, or the Westinghouse Vocarola, which is selfcontained. A ll three of these devices amplify the sound sufficiently so that everyone in the room can hear what is being received. Even the storage battery used with the detector-amplifier set may be charged at home. A Westinghouse Rectigon connected into the lighting circuit and to the battery, if left over night will again restore this unit to operating capacity. Victrola A ttachm ent__________________________________ $18.00 Vocarola Loud Speaker_______________________________ 30.00 Grafonola Attachment_________________________________ 18.00 Rectigon Battery Charger______________________________ 28.00 T e rm s:— One-fourth received. PRICES N E T F. O. B. DES M O IN ES cash with order, balance on delivery. Orders filled promptly as possible in the order S IL Z E R B R O S. 1019 W a ln u t Street DES M O IN E S, IO W A Authorized Jobbers-Distributors for Radio¿ ) Corp oration o f ^America 1 WGDLWORTH BUILDING - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N EW Y O R K C IT Y 46 THE N O R T H W E ST E R N BANKER June, 1922 What Constitutes the Final Payment Of a Bank Check? By the Legal Department C H E C K is presented at the teller’s window or through the mail, stamped, “ Paid," in the teller’s cage, and then turned back by the bookkeepers the same busi ness day. Does that cancellation in the form of a rubber stamp jeopardize recov ery from the indorser? There are decisions to the effect that placing a “ paid” stamp on a check does not, in itself, constitute payment. In one case a check on the defendant bank came in by mail from another bank, with instruc tions to remit. The check was stamped “ paid” and placed on a spindle, but before it was charged against the drawer’s account, or a draft forwarded in payment, the drawer came in and instructed the bank not to pay the check. It was held that stamping the check and placing it on a spindle did not con stitute payment. Consequently, the order to stop payment was received in time, and should have been ob served. The bank was held liable to the drawer of the check for the amount. In another case, a bank received a check by mail from a correspond ent bank. The drawee bank stamped the check “ paid” and placed it on a hook for cancellation. At the time the check was received the drawer’s account was not sufficient to pay it. But he was in the habit of making frequent deposits, and it was as sumed that a deposit covering the check would be made during the day or the next morning. W hen the deposit was not made on the follow ing morning, the drawee erased the “ paid” mark, protested it and returned it to the forwarding bank. No entry of the check was made on the books of the drawee bank. It was held that there had been no payment of the check by the drawee bank. The drawer of a check on a cer tain national bank in a city of the middle west delivered it to the payee in payment for a stock of goods pur chased from the latter. The payee deposited the check in the plaintiff bank for collection. The check ar rived after banking hours. An em ploye of the defendant in this case drew a draft for the amount, in favor of the plaintiff, and and placed it in the mail. The check was not charged A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimimiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiimiiiiiiii- Questions of interest to bankers are discussed in this department and any subscriber has the privilege of writing for information and advice on legal sub jects. He will receive a direct reply from our attorney without fee or ex pense. A brief of any subject involv ing research in a complete Law Library, will be furnished for $10.00. In writing for information, kindly enclose a 2-cent stamp for reply and address “ Legal De partment,” care Northwestern Banker, Des Moines, Iowa. against the drawer's account and no entry respecting it was made in the defendant’s books. That evening or early the next morning the defend ant learned that checks which the drawer previously deposited to his credit had been protested. As a re sult the account of the drawer of the check showed a large overdraft. The defendant called up the plain tiff on the phone, asking that the. draft when it arrived be returned, but received no satisfactory answer. The defendant then took the matter up with the post office, and the let ter containing the draft was inter cepted and returned. It was held that, inasmuch as the defendant took steps to reclaim the letter contain ing the draft within twenty-four hours after the receipt of the check, there had been no acceptance or cer tification of the check by the defend ant under the section of the negotia ble instrument law, which allows the drawee twenty-four hours after pre sentment in which to decide whether or not to accept. But where entries have been made on the books of the drawee bank, charging the account of the party, to whom payment is to be made, a different conclusion is reached. For instance, in one case a bank, being the holder of a check, forwarded it to the drawee bank. The latter marked the check “ paid” and charged it against the account of the drawer. It also credited it to the account of the forwarding bank. During the day a person, other than the drawer, appeared at the drawee bank, stated that the deposit be longed to him and instructed the drawee not to pay any checks against it. The next day, the drawee canceled the “ paid” mark, made new entries in its books and protested the check. It was held that, in legal effect there had been a payment of the check and that the credit thus given by the drawee bank could not be revoked. The cases referred to are all cases in which the check involved is sent by mail. There are other cases, in which the holder of a check passes it through the teller’s window in the bank on which it is drawn for deposit to the credit of his account. In these cases it is generally held that, if the depositor is given credit for the amount in his passbook, the bank may not afterwards revoke the credit upon discovering that the check overdraws the account against which it was issued. The theory of these decisions is that, in legal effect, there is no difference between paying such a check in cash and giv ing the holder credit for the amount in his passbook. In either event, the transaction is closed. The only state that has held to the contrary on this proposition is Cali fornia. In that state it is held that the bank has until the close of bank ing hours on the day the deposit is made to ascertain whether the check is drawn against sufficient funds. Omaha Debaters W in Decision The principle of preparedness was upheld in a debate between Des Moines and Omaha bankers follow ing a dinner of the American Insti tute of Banking at Younker’s tea room. The Omaha debating team was awarded the decision of the judges on their presentation of the negative of the question, “ Resolved, that the nations of the world disarm.” The Omaha team was composed of A. L. Vickery and E. A. W enberg of the United States National Bank, and Oscar A. Holquist of the First National Bank. They were winners of the national cup at the American Institute’s convention in Minneap olis last year. James F. Hart of the Iowa Na tional Bank, I. O. Hasbrouck of the Central State Bank, R. M. Messerschmidt of the Commercial Savings Bank and H. R. Dale of the Iowa Loan and Trust Company, repre sented the Des Moines chapter. The Omaha men were guests of their Des Moines colleagues at the Drake relays. June, THE 1922 N O RTH W ESTERN 47 BANKER Big ships seek deep streams. Enterprises of national scope, and operating under present com petitive conditions, require extensive financial resources. Like the business man choosing his banking home, the banker in selecting a city correspondent always has in mind the caliber of that connection: N o. 5 in a Series Discussing the Essen tials M e n W eig h W h en Choosing a Banking H o m e: Safety Spirit Experience Caliber Convenience C ompleteness PRESTIGE 1— Large enough that its facilities may be adequate for the re quirements of every customer. 2— Broad enough in spirit and perspective to help the patron capitalize all the possibilities of his business. 3— Small enough that its officers may be thoroughly acquainted and heartily in sympathy with what each patron is working to accomplish. W ith $4,700,000 capital and surplus— and an experience of 53 years in the service of commercial enterprises whose products in many instances are distributed throughout the world— the Union Trust Company has in an unusual degree the caliber which our correspondent banks recognize as desirable. Our p olicy is to p la ce our facilities, experience and financial associations fu lly at the com m and o f our correspondent banks in the service o f their customers. W e believe this co-operation 'will p rove o f unusual interest to banks and bankers now seeking the most effective Chicago connection. 1922 UNION TRUST COM PANY MADISON AND DEARBORN STREETS CHICAGO The B /L Bank in A m erica’s Freight Center R ea d ers w ill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 48 THE N OR TH W E STE R N BANKER June, 1922 Architecture Creates Atmosphere t J . , L:*. T h e e x t e r i o r o f y o u r b a n k b u i l d i n g is a q u e s t io n w h ic h d o e s n o t r e s t w it h y o u a lo n e . Y o u r b a n k h o l d s s u c h a n i m p o r t a n t p o s i t i o n in t h e c o m m e r c i a l l i f e o f y o u r t o w n t h a t it is o b l i g a t e d t o p u t i t s b e s t f o o t f o r w a r d in a l l t h i n g s t e n d in g t o w a r d c o m m u n it y im p r o v e m e n t . The https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ou ter a p p earan ce o f y o u r b u i l d i n g is a d e m a n d u p o n y o u f o r s o m e t h i n g a s fin e a s t h e c o m m u n i t y c a n a f f o r d , f o r y o u r b a n k is a s e m i - p u b l i c i n s t i t u t i o n a n d is e x p e c t e d t o r e fle c t th e p r o s p e r it y o f y o u r c o m m u n it y . Y o u r b a n k e x t e r i o r s h o u l d b e t h e fin e s t in y o u r l o c a l i t y a n d s h o u l d c a r r y o u t y o u r id e a o f t h e p r e m i e r b a n k in y o u r t o w n . THE June, 1922 N OR TH W E STE R N BANKER Atmosphere Creates Business Y o u r b a n k i n t e r i o r is a n o b l i g a t i o n y o u i n c u r w h e n y o u s o l i c i t b u s in e s s . I t is a n i m p o r t a n t c o n t r ib u t i n g f a c t o r to b u s in e s s s u c c e s s . I t is y o u r b u s i n e s s i t s e l f . I t is a t y o u r d e s k a n d in y o u r c a g e s t h a t y o u p u s h f o r w a r d a s a p r iv a t e b u s in e s s e n t e r p r is e . T h e m o r e e a r n e s t c o n s id e r a t io n y o u g iv e th e s e m a tte r s a n d th e s o o n e r y o u p la c e y o u r b a n k in a p o s i t i o n t o d o a m o r e r a p i d a n d h i g h e r g r a d e o f b u s in e s s , t h e s o o n e r t h a t b u s in e s s w ill c o m e to y o u . Q u e s tio n th e b a n k e r w h o h a s i m p r o v e d h is b u s i n e s s d r e s s , a n d th e n d e c id e fo r y o u r s e lf. A s y o u r a r c h it e c t s w e w ill s u b m it e v e r y t h in g a n d a n y t h in g to b r in g a b o u t b e tt e r q u a r te r s f o r y o u r b u s in e s s g r o w t h . S ee m e p e r s o n a lly a t th e D a v e n p o r t C o n v e n tio n . J. A . R A V E N , P r e s i d e n t . THE LYTLE COM PANY Architects and Engineers of Complete Bank and Office Buildings SIOUX CITY, IOWA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 50 K. M. VITZTHUM 6 CO. Bank Specialists K. M. V I T Z T H U M & J. J. BURNS ARCHITECTS and ENGINEERS Bank Buildings Complete Bank Interiors Vaults We designane! give guar anteed estimates with our sketches. 605 No. M ichigan Avenue Lake Shore Trust Bldg. C H IC A G O , ILL. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N OR TH W E STE R N BANKER June, 1922 Personal Paragraphs Fred A. Cuscaden, formerly cash ier of the Merchants National Bank of Omaha, Nebraska, and now vice president of the Northern Trust of Chicago, attended a conference of Omaha bankers recently and gave an address on business conditions. Don B. Johnson, vice president of the Sioux Falls Savings of Sioux Falls, South Dakota, was among the South Dakota bankers who at tended the meeting of the execu tive council of the A. B. A. at White Sulphur Springs, W est Virginia. $— Alfred L. Aiken, president of the National Shawmut Bank of Boston, has been prominently suggested for election to the Yale Corporation. This honor, for years, has been con ferred upon a few Yale men in recognition of exceptional execu tive ability. Mr. Aiken was the first governor of the Boston Fed eral Reserve Bank and has been pres ident of the National Shawmut Bank since 1918. He is a Yale grad uate. — $— Ralph Hayes, vice president of the Cleveland Trust Company of Cleveland, Ohio, has been appointed special assistant to W ill Hays, in su pervising the motion picture indus try. Mr. Hayes was private secre tary to Newton D. Baker while Mr. Baker was secretary of war. — $— Walter W . Head, president of the Omaha National Bank and vice pres ident of the A. B. A., was one of the several Nebraska bankers who at tended the executive committee meeting at W hite Sulphur Springs. — $— ‘ O. P. Miller, well known Iowa banker and president of the Lyon County National Bank of Rock Rap ids, Iowa, returned recently from a five weeks’ sojourn in California. W hile in Los Angeles Mr. Miller made an inspection of the city as a member of the committee which will select a place for the general confer ence of the Methodist church in 1924. Mr. Miller met many prominent Iowa people who are now residing in California. — $— Archibald C. Prime, former banker of Mitchell, Iowa, and well known in that section of the state, died re cently at his home in W aterloo. Mr. Prime was connected with the First National Bank of Chicago for six years. George M. Reynolds, chairman of the board of directors of the Conti nental and Commercial National Bank of Chicago, has returned to Chicago following his winter spent in California. — $— Charles G. Dawes, director of the budget at Washington, D. C., will re turn to his duties with the Central Trust Company of Chicago the first of July. — $— . J. Horace Jones, vice president of the Cleveland Trust Company of Cleveland, has presented his resigna tion and will take a much needed va cation from banking duties. He has had no vacation in thirty-two years. John A. Carroll, president of the Hyde Park State Bank of Chicago, has returned from Europe following a two months’ trip in that part of the world. President Warren G. Harding has advised the officers of the Associated Advertising clubs of the W orld that he will be unable to accept their in vitation to attend the annual conven tion to be held this year in M ilwau kee. — $— Fred W . Ellsworth, vice president of the Hibernia Banking and Trust Company of New Orleans, explained the New Orleans plan of co-opera tive bank advertising at the recent convention of the Tennessee Bank ers Association. — $— Herman Rumpen has become con nected with the securities division of the Irving National Bank of New York. Mr. Rumpen was formerly a partner in the brokerage firm of Kiely and Horton. — $— Leo Wegman, cashier of the Am er ican Savings Bank of Carroll, Iowa, has returned to Iowa follow ing a health visit to Rochester, Minnesota. He is well on the road to recovery after his illness. — $— Raymond E. Schumacher has been appointed assistant cashier of the Helena, Montana, branch of the Fed eral Reserve. He has been traveling auditor for the Federal Reserve dur ing the past year. June, 1922 THE N OR TH W E STE R N BANKER As Conditions Improve With the revival of agricultural prosperity, hanks need capable banking connections in Des Moines, center of Iowa’ s financial activity. This bank has the reputation of faithfully performing all obliga tions arising from accounts of bank correspondents. Ba n k e r s Trust Co. Ba n k . Capital $1,000,000.00 Cor. 6th.and Locust Sts. Dos Moines M em ber FedemI Reserve B a n k https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51 52 THE N OR TH W E STE R N BANKER June, 1922 o iR E C r C °/V/WE c t >o R S Fostering the Spirit of Constructive Cooperation ) O F F IC E R S : RALPH VAN VECHTEN C h a ir m a n o f t h e B o a r d G L E N N M. A V E R I L L P r e s id e n t G E O . B. D O U G L A S V ic e -P r e s id e n t • M A R T IN N E W C O M E R V ic e -P r e s id e n t K A R L H. R E H N B E R G V ic e -P r e s id e n t GEO. F. M IL L E R V ic e -P r e s id e n t CHAS. C. K U N I N G C a s h ie r The Cedar Rapids National Bank finds pleasure in serving banks and bankers. It offers facilities that are both prompt and efficient. It fosters the spirit of constructive cooperation which in these times counts tremendously. It finds enjoyment in having a close personal relationship with its clients. This has always been a matter of real advantage as well as a source of gratification to the bank. You will find this bank not only ready but anxious to serve you. P E T E R B A IL E Y A s s is t a n t C a s h ie r M A R V IN R. S E L D E N A s s is t a n t C a s h ie r GEO. W . SW A B A s s is t a n t C a s h ie r ANNA R. A s s is ta n t Capital, Surplus and Profits $ 9 5 0 ,0 0 0 .0 0 SM OUSE C a s h ie r B E R T H A M. W O L F A s s is t a n t C a s h ie r The Cedar Rapids National Bank Cedar Rapids, Iowa This bank was not built in a day. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE Charles B. Mills, president of the Midland National Bank of Minneap olis, was an invited guest and ac companied a party of governors and national bank examiners of the Fed eral Reserve Districts on a motor trip from Columbus to W ashington, D. C. The meeting of governors and examiners was held in Washington, D. C., and included R oy A. Y oung of Minneapolis, Governor of the Fed eral Reserve of M inneapolis; H ow ard M. Sims, Chief Examiner, Ninth Federal Reserve District, and Fred Brown, Chief Examiner, Seventh Federal Reserve District. J. M. Martin, general counsel for the Minnesota Loan & Trust Com pany of Minneapolis, has returned to Minneapolis from a three months’ tour in southern Europe and Africa. Mr. Martin had a variety of expe riences and visited a great many countries on his trip. — $— A. F. Dawson, president of the First National Bank of Davenport, Iowa, addressed members of the Community Club of W hiteside coun ty and the Chamber of Commerce of Morrison, Illinois, at their annual dinner held in Morrison. Mr. D aw son spoke on the importance and op portunity for community work. — $— George D. Wybrant, treasurer of the Federal Bank and Trust Com pany of Dubuque, was married re cently to Clara F. Burridge of that city. They will make their home in Dubuque. Mr. W ybrant was for merly city treasurer of Dubuque and is Grand Commander of the state of Iowa for the Knights Templar. — $— Homer Miller, president of the Iowa National Bank of Des Moines, has returned to Iowa follow ing a very pleasant three months’ trip abroad. Mr. Miller, in company with several other Des Moines peo ple, visited many of the European countries, and reports a variety of interesting experiences. “ H ow ever,” says Mr. Miller, “ the best thing about the entire trip was getting home again.” A. B. Darling, vice president of the Security National Bank of Sioux City, Iowa, has been elected presi dent of the Sioux City Chamber of Commerce. Mr. Darling has long been active in that organization and was formerly treasurer of the Cham ber. — $— R. P. Palmer, cashier of the CityCommercial Savings Bank of Mason City, Iowa, has resigned his posi- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O R TH W E STE R N 53 BANKER IR V IN G NATIONAL BANK N ew Y ork S tatem en t o f Conditio?t, M a y 5, 1 9 22 esources Cash in Vault and with Federal Reserve Bank $28,386,375.65 Exchanges for Clearing House and due from 39,815,170.39 other Banks . . . . . Call Loans, Commercial Paper and Loans eligible for Re-discount with Federal 79,742,380.22 Reserve Bank . $147,943,926.26 O th e r L o a n s a n d D iscou n ts Demand Loans Due within 30 days Due 30 to 90 days Due 90 to 180 days Due after 180 days 11,587,254.05 10,340,085.07 23,967,149.50 36,174,237.64 5,079,337.05 United States Obligations . . . . Short Term Securities . . . . . Other Investments. . . . . . Bank Buildings . . . . . . Customers’ Liability for Acceptances by this its Correspondents [anticipated $2,228,219.95] . . . . . . . . Bank and 87,148,063.31 5,357,579.98 13,837,053.62 8,276,224.76 595,943.76 13,455,897.98 $276,614,689.67 lia b ilities Capital Stock . . . . . . . . . Surplus and Undivided Profits . . . . . . Discount Collected but not Earned . . . . Reserved for Taxes and Expenses Circulating Notes . . . . . d . . Acceptances by this Bank and by Correspondents for its A c count [after deducting $152,503.13 held by the Bank] Deposits . . . . . . . . . 18 5 1 - 1 9 2 2 : SEVENTY-ONE YEARS A $12,500,000.00 11,224,338.62 1,170,139.19 815,094.96 2,497,800.00 15,684,117.93 232,723,198.97 $276,614,689.67 BUSINESS BANK B a n k S t o c k -B a n k H elp If you want to buy or sell a bank, want a bank position or need experienced bank help, call, wire or write THE CHARLES E. WALTERS CO. Omaha, Nebr. 54 THE N O R TH W E STE R N BANKER June, V I N C E its organization over thirty years ago, during which time it has continued under the same manage ment, this hank has constantly endeavored to he of the right sort of assistance to its patrons. That the relation ship between the bank and its customers has proved mutually pleasant and profitable is evidenced by the sub stantial success of both. To those desiring this exceptional banking service in Chicago, the management continues to offer its facilities in all Departments. BOARD OF DIRECTORS JOHN A. L Y N C H . A. B A U E R , B E N JA M IN V. B E C K E R . L E O N A R D A. B U SB Y. JOHN V. FA R W E L L , R O L L IN A. K E YE S. R O B E R T W. L E A T H E R B E E , SILAS J. L L E W E L L Y N . JOHN R. M O R R O N , R o b e r t m . M cK i n n e y , LOUIS F. SW IF T , C H A R LE S W A R E ,- F. EDSON W H IT E , G E O R G E W O O D R U FF. THE R - P r e s id e n t P r e s id e n t , B a u e r & B la c k L e v in s o n , B e c k e r , S c h w a r t z & F r a n k - P r e s id e n t , C h i c a g o C i t y R a il w a y C o m p a n y P r e s id e n t , J o h n V . F a r w e ll C o . P r e s id e n t , F r a n k lin M a c V e a g h & C o . F arm er P r e s id e n t , I n t e r s t a t e I r o n a n d S t e e l C o . P r e s id e n t , A t l a s P o r t la n d C e m e n t C o . , N . Y . V i c e -P r e s id e n t P r e s id e n t , S w if t & C o m p a n y F o r m e r l y V i c e -P r e s ., N a t io n a l A n ilin e & C h e m ic a l C o . V i c e -P r e s id e n t , A r m o u r & C o . V ic e -P r e s id e n t - NATIONAL E P OF U BANK B L OF THE I C CHICAGO 100 Years of Commercial Banking THE Bank O F THE CITY OF NEW YORK L O U IS G, K A U F M A N P r e s id e n t R I C H A R D H . H IG G IN S F ir s t V ic e P r e s id e n t W IL L IA M H. S T R A W N B E R T L. H A S K IN S V ic e P r e s id e n t V ic e P r e s , a n d C a s h ie r C. S T A N L E Y M I T C H E L L N O R B O R N E P, G A T L IN G V ic e P r e s id e n t V ic e P r e s id e n t H , A , C L IN K U N B R O O M E R MAX M ARKEL V ic e P r e s id e n t V ic e P r e s id e n t G EO RG E R. B A K E R W A L L A C E T. P E R K IN S V ic e P r e s id e n t V ic e P r e s id e n t JO SE PH B R O W N JO H N B. F O R S Y T H V ic e P r e s id e n t V ic e P r e s id e n t W A L T E R B. B O IC E V IN T O N M. N O R R IS V ic e P r e s id e n t V ic e P r e s id e n t A R T H U R T. S T R O N G W IL L IA M M. H A IN E S V ic e P r e s id e n t V ic e P r e s id e n t G E O R G E P. K E N N E D Y J A M E S C. B R O W E R V ic e P r e s id e n t V ic e P r e s id e n t L A W R E N C E J. G R I N N O N H. F. M E E H A N V ic e P r e s id e n t V ic e P r e s id e n t H E N R Y R . JO H N STO N R O L F E E , B O L L IN G V ic e P r e s id e n t V ic e P r e s id e n t H E N R Y L. C AD M U S H E N R Y C. H O O L E Y A s s t. C a s h ie r A s s t. C a s h ie r H A R V E Y H. ROBERTSON W E L L IN G S E E L Y A s s t. C a s h ie r A s s t. C a s h ie r ROBERT ROY W I L L I A M S. W A L L A C E A s s t. C a s h ie r A s s t. C a s h ie r H E N R Y E. A H E R N G E O R G E M. H A R D C h a ir m a n T r u s t O ffic e r E x cep tio n a lly q u a lified t o h a n d le th e a c c o u n ts o f B a nks, T ru st C o m p a n ies a n d o th e r C o rp o ra tio n s. C o rres p o n d en ce in v ited . 150 M illio n D ollars R esources R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N D A N K E R when w ritin g to ou r a d v ertisers https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1922 June, THE 1922 tion at Mason City and will become cashier and manager of the Union State Savings Bank and Trust C om pany of Kewanee, Illinois. His re signation will take effect some time before July 1. He will retain his position as director on the CtityCommercial directorate. —$— N O R TH W E STE R N BANKER Where D oes He B an k ? C. T. J'affray, president of the First National Bank of Minneapolis, has been elected a director of the re organized Moline Plow Company of Moline, Illinois. The new company will have $16,000,000 current assets. Frank O. W etm ore, president of the First National Bank of Chicago, is chairman of the board of directors and George N. Peek is president. That is the question today among business men about business men —a man is judged by the com pany be keeps. Many honored names have been on our books through the third and fourth generation. John P. O’Malley, vice president of the Perry National Bank, Perry, Iowa, and formerly president of the State Life Insurance Company and the American Trust & Savings Bank of Des Moines, died recently follow ing an attack of pneumonia. He was in poor health for tw o years prior to his death. — $— Our resources, our facilities, our experience are here to perform every function of a bank. Where do you bank? Seeking ne<w business on our record John F. Sinclair, of Minneapolis, delivered an address on European debts and American credit before the annual meeting of the American Academ y of Political and Social Science held recently in Philadel phia. Mr. Sinclair was the only banker from the northwest to ap pear on the program. U h em ical BANK — $— OF NEW YORK A. L. Ordean, president of the First National Bank of Duluth, Min nesota, returned recently from an eastern trip which included a meet ing of the national budget committee on which he has been serving. Mr. Ordean is chairman of the district surrounding Duluth. James E. Hamilton, vice president of the Merchants National Bank of Cedar Rapids, Iowa, will sail July 5th from New York on the steamship Paris. He will go direct to Paris, France, where he will meet Mrs. Hamilton and his daughter, Anne, and his son, John. Mr. Hamilton’s daughter has been attending a girls’ boarding school in Paris during the past year. During the summer Mr. Hamilton and his family will visit Germany, Austria and Switzerland and also take a short motor trip through England. Miss Hamilton will remain in Paris for two years longer completing her studies, but Mr. and Mrs. Hamilton and their son will sail from Havre early in Sep tember and reach New York about September 9th. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 THE N A T I O N A L Founded 1824 B R O A D W A Y A N D CHAMBERS, FACING CITY H ALI ■ B U 5b THE 56 N OR TH W E STE R N BANKER A Cooperative Corporation The Spirit of Cooperation W hich Has Accom plished So M u ch in Iowa During the Past Year Should Be M ade a Perm anent Partnership By the Iowa Banker and the Iowa Farmer. The Iowa Farm Credit Corporation is the result of a year of co-operative effort between the farmers and bankers of Iowa and as its organization is being completed the vision of usefulness comes near to realization. June, 1922 Increases Capital Stock T o facilitate its rapidly increasing business, the New York Title and M ortgage Company, 135 Broadway, New York City, on May 1st in creased its capital from $3,000,000 to $4,000,000. The new stock was entirely subscribed by the present holders. This gives the company capital, surplus and undivided profits of about $6,500,000. Honored on Banks’ Birthday Observing the twentieth anniver sary of the establishment of the Chi cago Trust Company, President Lucius Teter received a host of W e want the bankers of Iowa to be thoroughly conversant with the class of securities which this corporation will issue, including Iowa First Mortgage Gold Bonds and our regular Farm Paper Debenture Bonds. IO W A FIRST M O R T G A G E GOLD BONDS Now issued by the Iowa Farm Credit Corporation, provide in convenient form the highest class of conservative investments for your funds in amounts from $100 to $10,000 and for one year to ten years, with interest at six per cent, payable semi-annually. First Mortgages on the best Iowa farm lands are conservatively made by this company. The mortgages are placed with a corporate trustee and with the mortgages as security the Company issues FIR S T MORTGAGE GOLD BONDS in denominations of $100, $500, $1,000 and $5,000 for one year to ten years. C O N V E N IE N T AND IN F O R M , D E N O M I N A T I O N , L E N G T H OF T IM E Your need for a conservative Iowa Farm Mortgage Investment can be supplied in any amount for any length of time from one year to ten years, with interest payable semiannuaUy. These are coupon bonds, convenient to cash interest coupons and can be registered. This Corporation expects to soon issue which will he secured by farmers’ notes these bonds will run from three months to to $10,000. No better short time security public and banks in this state. its farm paper debenture bonds, deposited with a trustee, and a year and will be from $100.00 can be offered to the investing IOWA FARM CREDIT CORPORATION Sixth Floor Observatory Building DES MOINES, IOWA LUCIUS TETER Our banking, foreign, investment and trust departments offer a complete financial service to meet the varied needs of our clients. Detailed information of the service rendered by any of our special departments will he gladly supplied upon request. Established 1810 THE MECHANICS & METALS NATIONAL BANK of the City of New York Capital, Surplus and Profits, $27,000,000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis friends at the bank. His office was decorated with floral pieces sent in by customers. Mr. Teter was one of the organ izers of the bank and started as cashier on the opening day, May 1, 1902. He became vice president in 1907, and president in 1908. He has seen deposits grow from $27,801.01 to the total of $13,883,000 on May 1, 1922. From its original quarters at W ashington and State streets, the bank moved in 1904 to State and Madison streets. A new home is now under construction at Monroe and Clark streets. Conscience is the present opinion a man has of his own actions.— W ilson. June, THE 1922 N O R TH W E STE R N BANKER OFFICERS DIRECTORS S. T. KIDDOO, President. JAMES H. ASHBY SAMUEL COZZENS G. F. EMERY, Vice-Pres. S. T. KIDDOO J. L. DRISCOLL, Asst, to Pres. G. F. EMERY ARTHUR G. LEONARD D. R. KENDALL, Cashier. H. E. PORONTO A. W . AXTELL, Asst. Cashier. J. A. SPOOR LOUIS F. SWIFT L. L. HOBBS, Asst. Cashier. H. E. HERRICK, Asst. Cashier. M. A. TRAYLOR CASURPLlts^D $ 2 ,2 5 0 ,0 0 0 F. EDSON WHITE THOS. E. WILSON C. L. WISTRAND, Asst. Cashier. “' S “ $ 2 0 ,0 0 0 ,0 0 0 For M ore T han Half a C entury through times of financial stress and ease— this bank has continued to serve an ever-increasing number of correspondents throughout the Central and Far W est, in a manner that has won for it the name of “ T H E B A N K of G O O D S E R V I C E ” In addition to entirely adequate facilities for general banking, this service has been from the beginning, ever mindful of the best interests of the stockman, and offers particular advantages to banks whose business includes the financing and clearing of live stock operations. C O R R E S P O N D E N C E IN V IT E D THE LI V E S T O C K E X C H A N G E N A T IO N A L BANK O F C H ICAGO WILL BE REPRESENTED AT YOUR STATE CONVENTION R ea d ers w ill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE N O R TH W E STE R N BANKER June, The Safest Safe Deposit Box Ever Made That is the verdict expressed by vault engineers and leading Safe Deposit men after carefully inspecting Federal Safe Deposit Boxes. They have immediately recognized that a new standard of safety has been attained in Federal design and construction. In building Federal Safe Deposit Boxes, our aim has been to give each box the strength and safety of an individual safe— affording adequate resistance against any possible attempt at unauthorized entrance. This has been accomplished by developing Seven N ew Protective Features Flush Front Construction—No C The Federalock*Yale Built—An protruding ledges oruprights—no joints or cracks—not aweakspot for ayegg toworkon. eight-tumbler Yale lock, with a specially built round lock bolt which maintains its full thickness inside the lock case. In all other locks the bolt is only about f/8 inch thick inside the case. ^ The Reserve Lock —An additional locking bolt of special alloy, stainless tool steel, placed within the heart of the door and operated by the Yale lock. Reinforces the door and affords maximum protec tion against jimmying. H Improved Construction — Each ' box compartment built like an individual safe in itself encased in a frame of heavy steel, fused together into one solid unit. Flanged Doors — Flanged on all four sides like a safe door, affording double the strength of the ordinary straight-edged door against sledging. Interior Hinges — Eliminating the unsighdy outside hinge which is always a source of weakness. Also greatly facili tates cleaning. Non-Punchable Key Pass—Abso lutely proof against punching or jamming— thus overcoming one of the most serious weaknesses of ordinary safe deposit boxes. Federal Safe Deposit Boxes can be furnished with exterior hinges to match present equipment, if desired. In view of the increasing risk and liability involved in Safe Deposit ousiness, no bank can afford to overlook the higher standard of safety made possible by Federal Safe Deposit Boxes. Let us send you more detailed information with complete specifications. The Federal Safe Deposit ^System offers banks a practical program for improv ing standards of safety and service, and for building Safe Deposit business on the basis of maximum profit and minimum risk. If you are interesteddn making your Safe Deposit Department the leader in your community, it will pay you to write for full information. BANK E Q U IP M E N T DEPARTM ENT FEDERAL PRESSED STEEL C O M P A N Y MILW A U KE E , W I S C O N S I N FEDERAL SAFE DEPOSIT BOXES EachBox An Individual Safe In Itself https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1922 June, THE 1922 Has Designed 100 Iowa Banks J. A. Raven, of the Lytle Com pany, Sioux City, who has designed and built more than 100 Iowa banks in the past few years, will be one of the guests at the annual convention of the Iowa Bankers Association at N O R T H W E S T E R N 59 BANKER F irst N ational B ank Story City, Iowa Your business is solicited upon the basis of accurate, prompt and courteous service. Comptroller’s Call Statement May 5, 1922 R E SO U R C E S J. A. RAVEN Davenport. He will be glad to talk to bankers who are interested in new ideas for bank homes. A m ong the many Iowa banks de signed by Mr. Raven are the First National, M aquoketa; Farmers and Merchants State Savings, Manches ter; First National, Iowa Falls; Mapleton Trust and Savings, Mapleton ; First National, E stherville; Spirit Lake National, Spirit Lake; Farmers and Merchants Savings, Grand M ou n d; Peoples Savings, Guthrie Center; Abram Rutt Na tional, Casey; First National. Valley Junction; Citizens National, Spen cer; Farmers Savings, Goldfield; Terril Savings, Terril, and Security Trust and Savings, Storm Lake. S. J. W andvik Elected Cashier Arthur A. Hill has resigned as cashier of the Perkins County State Bank of Chance, South Dakota, and will enter the life insurance busi ness. He is succeeded by S. J. W andvik, cashier of the Citizens State Bank of Isabel. Mr. W andvik will retain his position with the Citi zens State. Clark E. Fow ble re mains with the Perkins County State as assistant cashier. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Loans and Discounts-------- -------------------- $421,770.90 Overdrafts ____ __ ___ _________________ . 249.50 Bonds and Securities-------------------- --------- 78,700.01 Banking House and Fixtures..---------------- 20,800.00 Other Real Estate ..... ................................ 14,543.70 Five Per Cent Redemption........................ 3,750.00 Stock in Federal Reserve Bank. ............... 2,700.00 Cash and Due From Banks......................... 55,037.33 Total ....... ...... ...... ............................. $597,551.44 L IA B IL IT IE S Capital Stock_______________ ____ _______$ 75,000.00 Surplus and Profits ........ ............................. 25,857.60 Reserve for Interest and Taxes................. 2,000.00 Circulation .... .................................-............... 75,000.00 Cashier’s Checks ......... ...............-.............— 932.59 Rediscounts ....... .........—------------------ ----- -- 14,422.00 Deposits _______ ______ -............................... 404,339.25 Total ...................-........ ..................... $597,551.44 OFFICERS T . T . H E N R Y SO N P resid en t O . T . H E N R Y SO N V ice -P re s id e n t A . M . HENDERSON C ashier DIRECTORS O . J . H E N D ER SO N OLE O . ROE O . T . H E N R Y SO N T . T . H E N R Y SO N A . M . H EN D ERSON 60 THE N OR TH W E STE R N BANKER June, 1922 Committees Organized for A. B. A. C o n t in e n t a l S e r v i c e T ransferring Funds W ith Speed ONEY-changing in these days consists in making funds available for use at any place they are needed in the shortest possible time. Thou sands of correspondent banks, accustomed through years of banking intercourse to doing business with the Continental and Commercial, make it possible for us to transfer funds by wire to very remote points without delay. M Banks are cordially invited to investigate and test this service- The CONTINENTAL W COMMERCIAL BANKS CHICAGO https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Organization of a finance commit tee and a committee on convention information to take charge of ar rangements for the American Bank ers Association convention to be held in New York, October 2d to 6th of this year, has been announced by Seward Prosser, president of the Bankers Trust Company, New York, and chairman of the Committee of One Hundred, which has general charge of all preparations for the gathering. The finance committee, responsi ble for preparing a budget and pro viding for the expenses of the con vention, will be under the direction of Gates W . McGarrah, chairman of the board of directors of the Me chanics and Metals Bank. His asso ciates will be James S. Alexander, president of the National Bank of Commerce; Charles E. Mitchell, president of the National City Bank; W illiam C. Potter, president Guar anty Trust Company; Jackson E. Reynolds, president First National Bank; Albert H. W iggin, president Chase National Bank, and William W oodw ard, president Hanover Na tional Bank. Guy Emerson, vice president of the National Bank of Commerce, has been selected to head the committee on convention information. His as sociates will be Shepherd Morgan, assistant Federal Reserve Agent in New Y ork ; George E. Roberts, vice president National City Bank; Fran cis H. Sisson, vice president Guaran ty Trust Company, and Grosvenor Farwell, of Hitt, Farwell and Park. Mr. Emerson has established headquarters for his committee in the Equitable Building. “ It will be the duty of this committee,” said Mr. Emerson, “ to supply complete in formation to the 23,000 members of the bankers association in all parts of the country on all matters con nected with the convention. We mean to emphasize the importance of the October meeting to the bank ing interests of the United States in view of the serious national and in ternational problems that will come up for discussion. W e also hope to show the fundamental hospitality of New York as a city and to make plain to all of our guests the attrac tions available to visitors here. W e believe that more than 7,500 mem bers of the association and their friends will attend.” Safest Plan “ Robert! R obert! Here’s an other car rounding the corner. H ow shall I steer ?” “ Try to hit it, mother; try to hit it.” — Boston Transcript. A rtistic Designing Careful E n gravin g Fine Litho. Printin g All required to produce the U\ IV\y 1 i PPS3PF U''M■ EXPERIENCE | -QVALITY11 SERVICE ) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ESTABLISHED 1877 T h e G R im E L L S a v i n S . J . P O O L E Y , President B . J . C A R N E Y , Vice President E. L . N E L S O N , Cashier g s B a n k F. A . H A S T I NGS, Asst.Cashier C A P I T A N A N O U N D IV ID E D P R O F IT S $ 1 0 0 , 0 0 0 . 0 0 (J h G E O . L .W I L F L E Y , PRESIDENT W .C .P IE R C E , V ic e Pr e s id e n t C. D .B E L L O W S ,V ice Pr e s id e n t 6 EO. R. E L L IS O N ,V ice Pr e s t s Counsel S .H K E M P , Ca s h ie r ^ S e c r e t a r y A .K ,F R A N K ,A sst . S e c r e t a r y H .D .S N Y D E R , A sst .S ec r e t a r y A .W .H O O V E R , A t t o r n e y i x m : l l J o w Ia a , r m e k s Tr u s t ( î o m C APITAL AND SURPLUS pany 3 225,000.00 M a k y v i i .i . i ; , M i i , T R .TA M M E Nj V ic e President C. W . W IL H E L M S , C a s h ie r Io w a S t a t e B a n k : E S T A B L IS H E D 1 8 9 5 I N C O R P O R A T E D 1917 CAPITAL AND SURPLUS $112,500.00 A t l a n t i c , Io w a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O R TH W E S TE R N BANKER First National Bank Will Establish Branch Offices The First National Bank in St. Louis has announced, through its president, F. O. W atts, its plan to open offices at important centers of business within the city. This an nouncement is nation-wide in its significance in view of the years’ old tradition that national Ijanks were limited under their charters to a single location. Some months ago Mr. W atts had his attorneys take up a special study of the federal law with reference to this point and they rendered the opinion that the law does permit a national bank to establish additional places of busi ness within the city in which it is lo cated. This opinion was submitted to the present comptroller, D. R. Crisinger, who has concurred in this view. It is, therefore, with the full knowledge of the comptroller of the currency that the First National Bank is thus preparing to render a broader banking service to the peo ple of St. Louis. This is' in keeping with the forward-looking policies and plans under which the consoli dation which resulted in the First National Bank was effected when the St. Louis Union Bank, the Third National Band and the Mechanics-American National Bank were merged. President W atts stated that the view commonly accepted for so many years restricting na tional banks to a single location was found to have been based upon an administrative ruling of a former comptroller, and had no foundation in law. The First National Bank is doing a splendid piece of pioneering which has aroused great interest through out the country and President W atts has been receiving letters and tele grams from national bankers in other cities asking for copies of the opinion, which was prepared by Jones, Hooker, Sullivan and Angert. Leases have already been taken by the First National Bank on sev eral locations and others will follow as rapidly as possible. The bank expects to open some of its supple mentary offices by June 1st. Mr. W atts stated that these offices, lo cated in several sections of the city, would not only be centers for a com mercial business, but would also be a great convenience for the increas ing number of people who are open ing savings accounts. It will bring the bank to the people, thus revers ing the old practice of forcing the people to go great distances to the bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D IR E C T O R S F r a n k D . J a c k so n N . M . H u b b a r d , Jr. E rn est A . Jackson C h as. W . J on es F r e d H . P e a se C a rlto n B . P r a y W a y l a n d C. B a lla r d V e rn o n W . M ille r C a rl F . P e r c lv a l L eo E . S te v e n s G e o rg e A . W e l l s United Bank Building Home of United State Bank M E R IT — This young bank is better fitted than ever to take care of your business. W e hope that the trust being placed in us is the result of merit, for we try with the utmost of our ability to do what is expected. Des Moines transactions are handled with promptness and efficiency through the medi ation of our officers and their assistants. A special equipment in experience and or ganization is ready and willing to render a complete service to all. Your busijiess is sought and appreciated UNITED STATE BANK DES MOINES, IOWA F R A N K D. JACKSON P re s id e n t V . W . M IL L E R V ic e P re sid e n t A . C. N E L S O N C a sh ie r I. G. L U C C H E S I A s s ’t V ic e P re sid e n t an d M a n a g e r F o r e ig n D e p a r tm e n t DON B. C A SA D Y A s s ’t C a sh ie r A L V A E . C ASS A s s ’ t C a sh ie r 62 THE N ORTH W ESTERN BANKER THE M AN for THE JOB ! Bankers more than almost any other class of citizens know the need of “more business in government and less government in business”— and that’s what Pickett stands for. Mr. Pickett firmly opposes that “ dicta tion of the proletariat” which looks to government ownership or employee man agement of railroads, mines, banks and farms; and all socialistic propaganda directed against property rights or nulli fying constitutional safeguards. His record proves that he serves all his constituents impartially, all men, all women, all vocations, the home, the field, the factory. In Congress (representing the Third District), he amply demonstrated his fairness, his ability, his independence, his adhesion to sound political doctrines and his clearness of thought and courage in action. 1ION. C H A R L E S E . P I C K E T T W a t e r lo o , Io w a . M r. P i c k e t t is a n a t i v e I o w a n . H is p u b l i c r e c o r d is c h a r a c t e r i z e d b y h is f a i r n e s s , h is a b i l i t y a n d v i s i o n . A s an a t t o r n e y h e s t a n d s in t h e h i g h e s t c o u n c i l s in t h e s t a t e ; a n h o n o r e d a n d r e s p e c te d c itiz e n as w e ll a s a s u c c e s s fu l b u s in e s s m a n , b e in g v ic e p r e s id e n t o f th e L e a v it t & J o h n s o n N a tio n a l B a n k b e s id e s h a v in g v a r ie d p r o p e r t y i n t e r e s ts . S a fe , s a n e , c o n s e r v a t i v e . W o r t h y o f t h e s u p p o r t o f t h o s e w h o b e l i e v e in th e t r a d it io n s o f th e R e p u b lic a n p a r ty , o f w h ic h h e h a s a lw a y s b e e n a m e m b e r a n d f o r w h ic h h e h a s b e e n a t ir e le s s w o r k e r . His election will give strength to the Re publican party as an instrument of public good; as a Senator he will cooperate with a Republican president in the huge task of protecting American rights in the process of readjustment of world relations. Let’s nominate him at the primary. That will be a victory for the rank and file of the Republican party and will put an effective quietus on those of doubtful Re publicanism who are crying “leave it to the convention.” VOTE FOR CHARLES E. PICKETT A t the Primaries June 5th FOR UNITED STATES SENATOR “ P re p a re d , P u b lish e d a n d P a id F o r B y W a t e r l o o F r ie n d s o f M r. P ic k e tt.” Paid Political Advertising R ea d ers will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 June, 1922 THE N O RTH W ESTERN 63 BANKER The Education of Sons With the kindergarten, the public schools, private schools for discipline and preparation for college, and the colleges, we are all familiar as a means of education. But there is another education, more intimate, more essential, more important to the son and, ultimately, more impor tant to the father himself, than any or all those organized educational opportunities. It is the education in filial love, confidence and respect, in appreciation of parental affection, kindness, interest and guardianship, to which every son is entitled, and which he may receive only through close companionship, association and friendship with his father. It is a matter of about twenty-one years, this education, which begins in the childhood of the son, continues in his youth, and carries on until the boy has become a man equipped to assume the responsibilities and perform the duties of manhood. N ec essarily all through these years of the b oy’s life there are interruptions in this sweetest and most desirable education from home at times. Later on the school, the college, or the business education of the son may take him from the immediate per sonal influence of the father. Youth is interested only in those who are interested in youth. It seeks playmates, companionship, fel lowship, chums, buddies. The fa ther who educates his son in an abid ing love and respect for his parent is to be congratulated. It ripens only in personal association, mutual con fidences, wise counsels. A son nat urally admires his father so long as the father permits him to do so by deserving his admiration. But when the father detaches himself from his son’s loving interest, then the son is open to unworthy influences and the two are apart for all time.— Chicago Journal of Commerce. Breaking It Gently A silk merchant went to the bank to get his note renewed. 4T am sorry,” said the banker, “ but it will be absolutely impossible for me to renew your note.” The merchant’s face paled. After a moment of thought he looked up at the banker and said : “ W ere you ever in the silk busi ness?” “ W hy, of course not,” answered the banker. “ W ell, you ’re in it now ,” said the silk merchant as he picked up his hat and went out. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis O ur N ew Building We are now located in our new three-story, fireproof building with every facility to give you prompt and efficient service. Our stock of Special Purpose Books include the following forms: Safety Deposit Receipts Note Receipts Rank Remittance Forms Notary Protest Forms Property Deposited Property Statements Special Collection Blanks Safety Deposit Box Receipts Bankers Returned Item Books Safe Keeping Receipts EQUIPPED TO SERVE YOU L. W. H olley & Sons Co. E S T A B L IS H E D 1899 M A N U F A C T U R I N G S T A T I O N E R S , P R IN T E R S A N D RUBBER STAM P M AKERS 100-102 East Grand Ave. DES MOINES Cedar Rapids Savings Bank Cedar Rapids, Iowa solicits inactive accounts and correspondence concerning same. This bank makes loans on real estate, chattel or collateral security. This is the bank o f courteous service. J. M. DINWIDDIE, President L. J. DERFLINGER, Cashier 64 THE N OR TH W E STE R N BANKER OFFICERS J ohn fI. G ib son , P re sid e n t H a r r y F . Sehoen , V ic e P re sid e n t H . F . G ro ss, V ic e P re s id e n t G e o rg e L . R o w e , V ic e P re sid e n t N e il B . S c o le s, H a rp e r G ord on , C a sh ier A s s t. C a sh ier Resources Over Two and One-Quarter M illion The Mechanics Savings Bank of Des Moines is the most unusual bank in the state of Iowa because its customers have made it so. Here you will find that the officers are in close personal touch with each individual depositor. Here is a unique bank which takes a personal pride in handling the transactions of its cus tomers over the counter and its correspondent bankers. Send your Des Moines business to the Mechanics Savings Bank, where it will receive the same earnest attention that has characterized all our business dealings. The Mechanics Savings Bank O F D E S M O IN E S One Great Virtue o f Insurance Lies in the Peace of Mind It Gives B u t t h e a c c o u n t i n g d a y w ill com e. S e le c t c a r e f u l l y , t h e n , t h e c o m p a n y y o u r e c o m m e n d th a t n e it h e r y o u n o r y o u r p a tr o n s m a y b e d is a p p o in t e d . The test is in the Claim Settlements. IVe B A N K on ours and so may you. CH O O SE T H E G R E A T W E S T E R N — I T ’S GOOD Great Western Accident Insurance Company DES MOINES, IOWA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 Bank Failures in 1921 Reports from commercial agencies and other sources show that during 1921 some 528 state and private banks were closed, of which 163 were able to reopen or to effect satisfactory arrangements with other banks or otherwise to liquidate liabilities, Comptroller of the Currency Crissinger has announced. It appears that the liabilities of the 365 failed banks aggregate $96,000,000, making the average about $263,000. The southern geographical di vision was most seriously affected, with 131 failures and liabilities over $27,000,000. In western states the number was 122 and the liabilities ex ceeded $16,000,000. The number of failures in the mid dle states was 60, and reported lia bilities, $9,826,000, while 43 failures reported liabilities exceeding $13,500.000 in the Pacific states. But five bank failures occurred in the eastern states and four in the New England states, liabilities being $3,600.000 and $17,700,000 respectively. In the life of the national banking system, 1863 to December 31, 1921, inclusive, receivers were appointed for 637 insolvent banks, but of this number 43 having been placed in a solvent condition, were authorized to resume business, thus reducing the number of failures to 594, a fraction less than 5 per cent of the number of National banking asso ciations chartered. The records show that creditors of all insolvent banks received an average of 83.79 per cent of the banks’ liabilities to them. In 1893, 65 failures occurred; in 1897 there were 38, and in 1921, 34. There were 40 receiverships last year, but in three cases the banks were restored to solvency and authorized to resume business; in one other case the receiver’s commission was re voked and a reorganization effected; in another, liabilities were assumed and assets taken over by another asso ciation, and in one instance creditors were paid in full, but the receiver ship continued. These instances re duce last year’s failures to 34. Where Preachers Need Guidance Dr. Charles H. Parkhurst, for many years a famous Presbyterian clergyman in New York City, was recently sued and a judgment ren dered against him for $24,077 on a note he indorsed. The incident, so unpleasant in a preacher’s life, re calls other experiences of clergymen in business transactions. Bankers have many occasions to reflect on the ease with which June, THE 1922 N ORTH W ESTERN 65 BANKER OFFICERS OFFICERS SIM ON C A S A D Y Chairman of the Board F R A N K C. A SH Assistant Cashier CENTRAL STATE BANK G R A N T M cPH ER R IN President JOHN W . H A W K Assistant Cashier L E L A N D W IN D S O R Vice President CHAS. W . O X B O R R O W Assistant Cashier H E N R Y C. W A L L A C E Vice President FRED H . Q U IN E R Assistant Cashier IV A N F R A N K R. W A R D E N Assistant Cashier O. H A S B R O U C K Cashier M em ber of Federal Reserve System Comparison Brings Appreciation HEN you are thinking about your Des Moines cor respondent remember this— no bank can render a w ider service than its facilities perm it. Whatever may be your business in Des Moines, you can transact it through the Central State Bank. The Central State Bank meets the requirements of those desiring— “ complete banking service.'’ This bank is glad to invite your business on the basis of a broad, intelligent, helpful and really pleasant service. CENTRAL STATE BANK CA PITA L $250,000.00 SURPLUS AND UNDIVIDED PROFITS $350,000.00 DES MOINES, IOWA R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66 THE N O R TH W E STE R N BANKER R A IN INSURANCE Indemnifying county fairs, races, baseball games, celebrations, chautauquas, merchants’ special sales, and all other outdoor or in door enterprises against loss on account of rain. We write this line in the Federal Insurance Co. of New Jersey HAIL IN SU R A N C E on growing crops. No farmer can afford to lose his crop this year' We sell stock company insurance in this and all other lines. We write Hail Insurance in the Northwestern Fire and Marine Insurance Company Oldest and Largest General Agency in Iowa We write all branches of insurance W rite Us for Agency Connections Ellis & Holland Com pany Des M oines, Iowa Service to Bankers June, 1922 preachers are led into bad business ventures. Alm ost all of them are savers, and a depressingdy large per centage of them make unwise invest ments. The adventurer with a pat ent ‘‘worth millions,” the stock sales man whose certificates will double in value in a year, the man who has valuable corner lots to sell to men who can be made to believe they will increase enormously in price in a few months all find easy victims in the preacher who has a few hundred or a few thousand dollars laid by after years of close economy. Several years ago a bank presi dent in Marietta. Ohio, W . W . Mills, was so disturbed by the num ber of preachers whose savings were dissipated by hazardous invest ments, entered into with so much credulity when they were solicited by business adventurers, that he de livered an address to a body of cler gymen which was in substance a p ri mary lesson in the care and protec tion of savings. His audience needed just such a lesson, and no doubt his kindly and intelligent advice saved many of those who heard him from serious losses. Every ministerial body, at least once a year, should be given instruc tion in the care and investment of their small savings. W ith little or no business training, they need this kind of advice to save them from “ confidential opportunities” to lose all they have. One word of caution every clergyman should be willing to remember, and that is never to in vest with a stranger or with any body else until the investment has met the approval of a banker or a prudent business man in his congre gation.— Chicago Journal of Com merce. Quit Your Nonsense, Senators! Chicago T rust Com pany is highly devel oped along d epartm ental lin e s; it is equipped to render special service and give official personal attention to its cor respondent banks. Send for copy of our form , “ Service to B a n k e rs.” Capital $1,500,000 “ If some senators will go home and talk sense to bankers who remain outside the pale' of protection, in stead of talking nonsense to farmers and arousing prejudice against the Federal Reserve banking system, which has afforded them protection, something worth while will be ac complished.” — Senator Carter Glass. Fulfilled Ambition W R IT E FO R OU R Catalog o f Business Necessities DES M OINES RUBBER STAM P W O R K S ‘SAME DAY SERVICE” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES MOINES Mr. and Mrs. Brown have two sons, James and John. James decided to be an artist, John to be a writer. James draws checks on his father’s account. John writes home for money.— American Legion Weekly. June, THE 1922 N O R T H W E S T E R N BANKER ONE OF THE COPY ROOMS THE HOME OF CRADDICK SERVICE TAS Fourth A venue South. __ A hearty wel come awaits you here when ever you are in M inneapolis At the Service of Bankers Since 1906 financialtfdzœtâisirujßxcluswsly MINNEAPOLIS MULI R eaders will c o n fe r a fa v o r "by m en tionin g T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 67 68 THE N O R TH W E STE R N BANKER June, 1922 llllllllllllllH IIII]||||l!lllllill[|||liIII|l|lll|lllll!!llllll||||![||||!llllll|l!l|[|][||[||||||][|||||!||!|||||I||||||]||||||||l|||I||||!||[||||||||||||||||||||l|||[|][|||||[|||||||[||||||||||^ F or R eal Sa f e t y IO W A M UN ICIPAL BON DS No year lias ever shown more forcefully the true worth of Iowa Municipal Bonds. During the recent tight money market maturing Iowa Municipal Bonds were paid very promptly. Secured by all the real and personal property of entire Iowa communities, they are safe beyond question. Exempt from Iowa taxation and Federal income and sur taxes, they have proved the most convenient investment for banks, individuals and institutions. For thirty-one years Geo. M. Bechtel & Co. have dealt exclusively in Iowa Municipal Bonds. During all this time there has not been a single loss in principal or in terest of any of our issues. W e suggest you write for our list. City School MW A JL* M T JLeW County jL W O Drainage — Established 1891—- G eo. M . Bechtel £? Com pany BECHTEL BUILDING, D A V E N P O R T, IA. Grand Opera House Bldg., Dubuque Fleming Bldg., Des Moines O LDEST AND LA R G EST BOND HOUSE IN IOWA llll| ]ll| ]!lltlllllllll![lllllllt !l[llllllll[l[l][l!lil!!!E l[N II| [ll!lllIllll[l!!]I II[| II!ll!l[]| l![lllll!llll[l![![l!ll| [| | ll!l![| | | | | I II[| lt lllllII IIII I![| | [| | | ]II lI IIII IIllllllN R ea d ers w ill c o n fe r a fa v o r b y m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N ORTH W ESTERN BANKER 69 Iowa Bankers Association Convention Section The Northwestern Banker, June, 1922 Strong Program Has Been Arranged for 36 th Annual Convention H E thirty-sixth annual conven tion of the Iowa Bankers A s sociation will be held at Daven port Monday, Tuesday and W ed nesday, June 5, 6 and 7, 1922. Head quarters will be at the Blackhawk Hotel and hotel reservations can be made with Irvin J. Green, chairman of the hotel committee, First Na tional Bank, Davenport. All con vention sessions will be at the Capi tol Theatre in the Kahl Building. Round trip railroad tickets to the convention will be sold at fare and one-half on the certificate plan. Registration will be held on the mezzanine floor of the Blackhawk Hotel and will commence at 1 :00 p. m. Monday, June 5. Registra tion will be by groups. President Yetter on behalf of the conned of administration has in vited the presidents and secretaries of the ninety-nine county banker as sociations to meet with him and the council at 12:00 noon at the Black hawk Hotel, Davenport, Monday, June 5, as guests of the council of administration. O. F. Fryer, president of the exconncilmen’s organization, has is sued an invitation to all of the excouncilmen to be present at a din ner given at the Outing Club, Dav enport, at 6:00 p. m., June 5. d his dinner is open to all of the ex-councilmen of the I. B. A. T H O N . G I L B E R T M. H I T C H C O C K https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The annual ex-presidents’ dinner Ivory Gavel to the president, by will be held on Tuesday evening, Ed Kaufmann, president American June 6, at 6:30 p. m., Davenport. Commercial and Savings Bank, Dav S. M. Leach, Adel, president in 1918, enport. Address by Thomas B. McAdams, and M. H. Calderwood of Eldridge, president in 1919, will be joint hosts. president American Bankers A sso Following is a summary of the ciation, vice president Merchants National Bank, Richmond, Virginia. convention program : Address by Mr. Hanford MacNiTuesday, June 6th, 9 A. M. Invocation by Rev. Arthur Buck der, national commander American Legion, vice president First National ner. Bank, Mason City, “ The Front Music : Capitol Quintette, Davenport, con Line.” As in previous years the Iowa sisting of the following : Henry Soontag, violin; Harry Petersen, Bankers Convention will be sus violin ; A bt Peterson, viola ; Arthur pended for a part of Tuesday fore Peterson, cello; Ceno Petersen, pi noon, to resolve into an inter-con vention of the Iowa members of the ano. A. B. A. A t this inter-convention The quintette will render : Thos. B. McAdams, president of (1) Songs from “ Eliland,” A V on the A. B. A., will give a special talk Fielitz. (2) Loves Dream After the Ball, to the A. B. A. members. All oth ers, however, are invited to remain Czibulka. Miss Rhea Bollman, soprano, for this special program. Election of the Iowa officers of the A. B. A. Rock Island, who will render : (1) My Love, He Came On a Ski, will also take place during this period. Clough-Reighter. Tuesday, June 6th, 1:30 P. M. (2) Something W orth While, Ludwig Becker, Chicago violin W ard Stephens. soloist, reputed as one of the out (3) Tes Keux, Rabbey. Address of welcome by Albert C. standing musicians of the country. Mueller, mayor of Davenport. R e Director of the Tri-City Symphony Orchestra. He will render : sponse by E. R. Campbell, vice (1) Preislied, W agner. president, Iowa Bankers Associa (2) Mazurka, W ilhelmi. tion. (3) Fantasie Vieuxtemps, ZarAnnual address by the president, Frank B. Yetter. Presentation of the ' ciky. MR. T H O S . B. M c A D A M S HON. LO U IS T. M c F A D D E N 70 THE MR. J. H. H A S L A M Address by J. H. Haslam, Regina, Canada, member of the former Royal Currency Commission of Canada, now member of the Royal Grain Inquiry Commission of Canada, “ Branch Banking in Canada and the United States.” Address by Hon. Louis T. M cFad den, congressman of Pennsylvania. Wednesday, June 7th, 9 A. M. Madame Bergljot Tillisch will ren der a series of Norwegian Folk Songs in native costume. Madame Tillisch has been a singer for the Victor Phonograph Company. She spent the last summer in Norway and other parts of Europe learning new folk songs and studying under well known European masters. Be fore returning to America she made appearances in Christiania and also London. The special settings and paintings used by Madame Tillisch for this program were prepared for her by Jens W ang, famous scenic ar tist of Christiania, who painted the scenery used by Madame Sarah Bernhardt in many of her produc tions and that used by Richard Mansfield when he appeared in Peer Gynt. Her accompanist is Miss Helen Birmingham. Madame T il lisch will render: Part I. (a) Shepherdess’ Lament, Folk Song. (b) A Barnyard Tragedy, Hurum. LUDW IG BECKER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O RTH W ESTERN BANKER H O N . E. C. P L U M M E R (c) “ Kari” and “ Mari,” Folk Song. Part II. (a) The Maiden’s R e turn from the Tryst, Sibelius. (b) Norwegian Echo Song. Address by E. C. Plummer, mem ber of the United States Shipping Board, W ashington, D. C., “ U. S. Merchant Marine.” Address by Hon. Gilbert M. Hitch cock, United States senator from Ne braska, “ An International Bank— The Next Development of Credit.” The election of officers will take place on W ednesday forenoon. O f ficers to be elected are president, vice president and treasurer. Entertainment Features The following entertainment fea tures have been arranged for the m en : Monday evening a reception will be held at the Blackhawk Hotel, headquarters for the convention. A t 8:30 p. m. a smoker and “ Car nival of Fun” will be put on at the Coliseum. This performance will commence promptly at the time set. For Tuesday afternoon, at 3:30, there has been planned a boat trip up the Mississippi river on one of the finest steamers operating on the Mississippi river, capacity 3,500 peo ple. Boat docks at foot of Brady street. Both men and women guests MADAME BERGLJOT TILLISCH MR. June, 1922 HANFORD MacNIDER at the convention will take this trip. The boat will return to Davenport at 7 :00 p. m. Tuesday evening there will be an informal dancing party at the Gold Room, mezzanine floor, of the Blackhawk Hotel. A special show will be put on by the Legion Post at Davenport on this same evening at the Coliseum. It is a show more intended for the men, although ladies may go if they so desire, it is stated. The members of the Legion Post at Davenport ex tend an invitation to all of the bank ers present at the convention to go to this show. It is reported that it is going to be a splendid one. It may be there will be some present at the convention who do not dance, and there will be those who do dance who possibly can adjust their time so as to be present at both enter tainment features, if they may wish. W ednesday afternoon, for those who remain in the city the afternoon an automobile trip will be provided to take both men and women guests to the Davis Gardens, Iowana Farms, and other notable points of interest in and about Davenport. For the ladies an informal recep tion will be held at the Blackhawk Hotel, Monday evening, and an auto trip Tuesday morning followed by luncheon at the Golf Club. H O N . A L B E R T C. M U E L L E R June, 1922 THE N ORTH W ESTERN BANKE R Welcome Bankers The next opportunity you have to visit Davenport, we hope will he at the Bankers’ Convention this year. This will be a splendid opportunity to become acquainted with the men and their methods in this institution. You may know of the First National Bank of Davenport through actual O F F IC E R S experience or merely through its good A . F. D A W S O N , P resid en t name. JOE R . L A N E , V ice-P resident There is a real difference lying back IR V IN of the spirit of service we render. J. G R E E N , Cashier C . F. S C H M ID T , A ssistant Cashier P. A . T O R N Q U IS T , A ssistant Cashier W e want to know you and serve you; and you and your friends are cor dially invited to make the Bankers’ Convention trip doubly worth while by paying us a call. F IR S T N A T I O N A L B A N K DAVENPORT IOW A R ea d ers will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 71 72 THE N OR TH W E STE R N BANKER The Iowa Insurance Department in its recent report on this company, says: ‘“The affairs of this company have been conducted along conservative and economical lines and its steady and sub stantial growth reflects credit upon the management.” W h y Security Fire Insurance? T > ECAITSE, during its thirty-nine years of business activity, the Security Fire Insurance Company has always held its agents’ and policyholders’ interests as most important. Because it has a constantly growing family of policyholders that are boosting the company. Because its financial strength stands for permanency. Because any banker can, acting as agent or in an advisory capacity, recommend Security fire insurance, knowing it will “ Satisfy.” S e c u r ity F ir e In su r a n c e C om pany D A V EN P O RT R eaders will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 June, 1922 THE N ORTH W ESTERN BANKER 73 Davenport Is “ Where Folks Play, Plan And Work Together” By C. R. Miles Secretary Davenport Chamber of Commerce , long known as the gateway to Iowa, “ where the west begins,” is fast be com ing known as one of the live in dustrial centers of the middle west. The first bridge across the Missis sippi River was built at this point in 1853, and the first railroad west of the Mississippi started from Daven port. The many natural advantages of the city from the standpoint oi its geographical location have caused numerous industries to choose this as the location from which they might most profitably carry on their business. Perhaps one of the most important assets of the city from an industrial standpoint is its freight rate situa tion, which, together with an abun dant water supply, is made possible by the fact that the city is situated D aven po rt on the Mississippi River. The Mis sissippi River is a freight rate break ing point and manufacturers, par ticularly since the time of high freight rates, have found this a most vital factor. The diversification of manufactur ing concerns in Davenport is beyond doubt largely responsible for the splendid way in which the commu nity has stood up under the recent depression. It cannot be said that Davenport has not felt this depres sion, but, on the other hand, there have been no bread lines and at no time was the unemployment situa tion as serious as in the vast major ity of industrial centers. A long list of articles manufac tured in this city today ranges from the most delicate pieces of jewelry to the heaviest of freight cars. Its largest industrial plant, the Betten dorf Company, manufactures freight cars and underframes for railroad rolling stock. The plant is consid erably more than a mile in length and its capacity is twenty-five flat cars, twenty-five box cars and two hundred underframes per day. The French & Hecht Company are the largest manufacturers of agricul tural implement wheels in the world. "Phis factory manufactures about 2,300 different types of wheels, rang ing from six inches to six feet in diameter. Davenport is also the. home of the washing machine ini dustry, there being three large fac tories engaged in the production of these machines at the present time. Davenport also has the distinction of having the largest manufacture of stereopticons. This plant makes A irp lan e view of Davenport, show ing river fron t, govern nen t bridge, the only free bridge betw een St. L ouis and St. Paul, and the R ock Island A rsen al, the go vern m en t’s largest m unition factory. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 74 THE N OR TH W E STE R N BANKER Come to Davenport! Officers Y ou r visit to D avenport June 6tli and 7th is bound to be a highly profitable one, and on the other hand an enjoyable one. G EO . K L IN D T P r e s id e n t p . f . M cC a r t h y V ic e -P r e s id e n t H U G O H. STAH L, V ic e -P r e s id e n t H. T. H A N S E N C a s h ie r A D O L P H E. S T O L T E N BERG A s s is t a n t C a s h ie r A L B E R T W . HAMANN A tto rn e y Be sure and reserve these dates for D aven port. Y ou will be m ore than w elcom e. T h e officers of this bank are doubly glad the Convention is in D avenport this year, for it will give us the opportunity of serving you. Y ou will find us, as alw ays, ready and w ill ing to be of any possible help. Capital ................. Surpl us ................ Undi v i ded Profits Resourses ............ .$ 50,000.00 40,000.00 12,284.19 1, 100, 000.00 HOME SAVINGS BANK Davenport, Iowa Davenport Will Give You a Real Welcome When you arrive in Davenport you will receive an honestto-goodness welcome. There will be nothing too good for you— the town will be yours. We know that you will enjoy the entertainment that has been arranged, and profit from the program and discussions. Be sure and come— and don’t forget that the officers of this bank can ask for no greater pleasure than the oppor tunity of serving you. Citizens Trust & Savings Bank Davenport, Iowa E. J. DOUGHERTY, President H . L. HUEBOTTER, Vice-President OFFICERS J. E. BROWNLEE, Cashier G . E. GENSLEY, Asst. Cashier Northwest Davenport Savings Bank DAVENPORT IOWA A re a l w e lc o m e a w a its y o u in D a v e n p o r t a n d a t t h is bank w h en you c o m e to th e I o w a B a n k e r s ’ C o n v e n t i o n in J u n e . It w ill b e a p le a s u r e to b e o f s e r v i c e t o y o u in e v e r y w a y p o s s ib le . C a p i t a l ..........$ 50,000.00 S u r p lu s 30,000.00 .... U n d iv id e d P r o fits . . . D e p o s its R esou rces ... 27,380.00 1 ,2 96,000.00 . . 1 ,4 47,000.00 O F F IC E R S J. S. W e b e r P. P eters - P r e s id e n t V ic e -P r e s id e n t H en ry H. Jeben s https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - I W m . C. B u r r m a n n | A lb e r t E g g e r t A tto rn e y - C a s h ie r A s s t. C a s h ie r June, 1922 motion picture projectors of the portable type, which are in great de mand in schools and universities, as well as in the homes. It also has a capacity of nearfy 10,000 stereopticon slides per day. Space does not permit mention of all of the facto ries, but among the productions turned out will be found typesetting machines, cereals, crackers, candy, pumps, looms, paper balers, brooms, gas engines, clothing, optical goods, ladders, locomotives, flour, pearl buttons, ready-cut houses, cigars, industrial gases, motor trucks, etc. The above mentioned freight rate situation has also encouraged the development of Davenport as a dis tribution point. Some seven hun dred salesmen work out of Daven port, representing her many whole saling and jobbing establishments. In addition to these, seventy-five nationally known firms have found it to their advantage to ship into Davenport in carload lots and re ship in less than carload lots, thus making Davenport their distribut ing center. The visitor to this city is im pressed at once with a very splen did retail situation. There are four large department stores, with a mil lion dollar department store in the process of construction ; eight ladies’ ready-to-wear stores, thirty drug stores, twenty-three clothiers, tw en ty shoe dealers, and scores of g ro cery stores, cigar stores, and sp e cialty houses. The banking facilities of this com munity are more than common, there being thirteen banks with total deposits of nearly fifty million dol lars. These banks form the Daven port Clearing House Association, which organization has been par ticularly beneficial to the industrial, commercial and agricultural inter ests of the community. But there is something in this middle west city more impressive even than its industrial and commer cial life. This is best expressed by the popular phrase, “ Davenport, where folks play, plan and work to gether.” By means of a city beautiful cam paign conducted a few years ago, Davenport gained publicity from coast to coast for its well kept lawns, its flower gardens and beautiful parks. One woman’s magazine had so many requests for copies of its article dealing with Davenport's city beautiful campaign that it pre pared several thousand reprints for distribution. This was later supple mented by several sets of beautifully colored stereopticon slides, which (Continued on page 81.) June, THE 1922 N ORTH W ESTERN 75 BANKER OFFICERS The Oldest E D. K A U F M A N N President and R A Y N YEM ASTER Vice President Largest H . P. O E T Z M A N N Cashier Savings Bank F. C. K RO EG ER Assistant Cashier In Iowa F. A . JOHNSON Assistant Cashier Organized 1869 M E M B ER F E D E R A L R E SERVE SYSTEM We Want to Serve You The American Commercial and Savings Bank is a service bank. We will appreciate the opportunity of proving to banks and bankers that our serv ice is the kind they need. Especially will we consider it a pleasure to be of service to hankers attending the Davenport Convention, June 6th and 7th. Total Resources Over $18,000,000.00 A merican Commercial an d Savings Bank DAVENPORT, IOWA R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 76 THE N O R TH W E STE R N BANKER A Personal Message to the Bankers of Iowa . W e feel that the Federal Surety Company is particularly your kind of an institution. From the very beginning it has been managed just as we believe you would have it managed. Certain policies have been laid down to guide its progress. Chief of these was that the company should concentrate on building STRENGTH and not big production. There has never been the slightest deviation from this rule. The company is managed by experienced Underwriters. This fact, com bined with Federal Service and the active participation of well-known bankers and business men in the conduct of its affairs, accounts for the steady progress of this company. We believe our experience eminently qualifies us to serve you. With particular pride we point to the list of our Board of Directors which you will find on the next page. W e want you to know that we are here to serve you and that nothing could please us more than the opportunity of making your Davenport Conven tion trip more pleasant. Cordially yours, W . L. T A Y L O R , Vice-President and Gen’l Manager. R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d v ertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 June, 1922 THE NORTHWESTERN BANKER R ea d ers w ill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 77 78 TH E N O R T H W E S T E R N B A N K E R Í& W D istinctively a Service B ank r I ^HE unusual popularity of the Iowa National Bank rests upon these three big principles, Cooperation, Confidence and Character Cooperation — Confidence — The friendly business kind. The kind justified by “ Service Rendored.’ ’ Character— The kind founded on strength and integrity. Its primary object is to build itself upon the solid foundation of fair and square dealings. I s n t that the kin d of service you want? IO W A N A T IO N A L B A N K DAVENPORT , IO W A CHAS. SHULER, President FRANK B. YETTER, Vice-President LOUIS G. BEIN, Cashier WM. H. GEHRMANN, Vice-Pres. HERMAN STAAK, Asst. Cashier R ea d ers will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 June, THE 1922 N OR TH W E STE R N Special Music Will Feature the 1922 Convention MISS R H E A BOLLMAN r T 1 H E Iow a bankers and their " wives and other ladies attend ing the bankers’ convention have manifested that they enjoy the special musical numbers which have been added during the past two or three years to convention programs. The officers of the association at the coming convention will provide the members present with some of the finest musical attractions obtain able. It is a well known fact that the bankers and their wives in their home towns would make an unusual effort to hear any one of these ar- tists scheduled for the convention who might come to their town on a lyceum bureau or chautauqua pro gram. The officers of the associa tion give every assurance that the musical programs this year will far excel as a whole any such program previously presented to the Iowa bankers at their convention. All will be glad that they came and heard these musicians and those who are not present at the conven tion sessions on time to hear these artists will learn that they missed a real opportunity. The officers of the association have allotted definite time this year to each musical fea ture. CAPITOL Q U IN T E T T E Use Absent Voters Ballot for the Primaries If Necessary HE officers of the Iowa Bank ers Association regret that the opening night of the convention entertainment happens to come on the night of the primaries, June 5. T o the vast majority of bankers this will possibly make but little differ ence, it is believed. The officers of the association tried most hard in setting the dates for the convention to avoid the commencement exer cises of both the university and state agricultural college at Ames, the Grand Masonic lodge, the Grotto convention at Davenport, the state conventions of bankers associations surrounding Iowa, as well as to get dates that would not conflict with other activities that might be taking place during the month of June at Davenport. A vast number of those going to the state convention will be able to cast their ballots previous to leaving for Davenport and still be T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 79 BANKER able to reach Davenport in time for the big “ Carnival of Fun” to be staged at the Coliseum at Daven port, Monday evening, June 5, at 8 :30. All others will unquestionably use the “ absent voters ballot” pro vided by a recent general assembly. An explanation in regard to this bal lot follow s: T o procure and use it is very simple. The officers of the state as sociation urge all bankers to use the “ absent voters ballot” if there is any question whatsoever that those bankers may not be able to reach Davenport in time for the op ening entertainment performance on Monday evening, June 5. The use of this ballot will enable all to ar rive in ample time. Under the provisions of the law any one expecting to be absent from home, or is ill or disabled on the day of any such election may, in person or by writing, not more than 15 nor less than 3 days prior to the date of such election make requests of the county auditor of such county or the city clerk of his city or town, as the case may be, for an applica tion blank with which to later re quest an official absent voters bal lot to be voted at such election. The application must be sent to the county auditor or city clerk as the case may be, not more than ten days, and not less than one secular day before said election. On receipt of this application the voter simply fills it in, has it acknowledged, and returns it either to the county audi tor or to the city clerk, after which the county auditor or the city clerk, as the case may be, will hand to the voter applying in person, or by mail, as the case may be, an “ absent vot ers ballot.” The voter exhibits the blank ballot to a notary and then in the notary’s presence and in such manner that the notary cannot see his vote, marks such ballot, and en closes and seals the same in the en velope provided. “ Said envelopes shall be mailed by such voter by registered mail, postage prepaid, to the officer issuing the ballot, or, if more convenient, it may be delivered in person.” The whole voting procedure is very simple. Summing it up, it may be said that a voter contemplating being absent on the day of election must request of the county auditor of a city or town clerk within 3 days prior to the date of such elec tion, for an application for an “ ab sent voters ballot.” After receiv ing the application and filling it out and returning it the voter is then given an “ absent voters ballot.” Security Fire. The Security Fire Insurance Com pany, of Davenport, is one of the strong companies of Iowa and the middle west. It was organized in 1883, and is under experienced and competent management. The com pany has a splendid reputation for paying losses. It has a capital of $ 200,000 . The company writes fire, automo bile, hail and tornado insurance in five middlewestern states. Officers are James W . Bollinger, president; Rudolph Rohlfs, vice president; L. M. Marks, treasurer; E. E. Soenke, secretary. Directors include J. W . Bollinger; H. C. Brummel, R. J. Clausen, Paul Hinsch, L. M. Marks, Rudolph Rohlfs, E. E. Soenke. 80 THE N O RTH W ESTERN BANKER June, 1922 When You Attend the Iowa State Bankers Convention at Davenport, June 12, 13 and 14 We Extend to You A Cordial Invitation To Visit The Gordon-Van Tine Plant That this country will soon witness the greatest building program in its history is inevitable. For five years building has been below normal. Today building material prices have touched bottom, and have again begun the upward trend. When clients discuss with you the advisability of building and values, and ask your opinion of Gordon-Van Tine, you, of course, want to be properly posted. We hope you will take the opportunity, while in Davenport, to get ac quainted with us as one of the largest building material concerns in America. We’d like to meet you and we believe an interchange of ideas will be mutually profitable. We believe, too, you will be interested in seeing the high quality of our lumber and building material and note the reasonable prices we offer. It explains why we can make an unlimited guarantee of “Satisfaction or Money Back.” W e will also have an Exhibit on the Mezzanine Floor of the Blackhawk Hotel during the Convention which will present features of unusual interest to the banking fraternity. G ord on -VanTine Co. E ST A B L ISH E D I© 6 5 Satisfaction Guaranteed or Money Back Resources Over $1,000,000.00 R E FE R E N C E S: Any Bank in Davenport; Continental and Commer cial National Bank, Chicago, 111.; National City Bank, New York City 190 East River and Federal Sts. Davenport, Iowa Take Third St. Car, East from Blackhawk Hotel. R eaders will c o n fe r a fa v o r by m entioning TH E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 T H : D A VE N PO R T— CO N VENTION CITY (Continued from page 74.) were circulated throughout the country. During this campaign “ one mile of flower boxes” was erected in the business district, and the shrub bery and trees planted at that time have made Davenport today a veri table flower garden. There are four teen parks, totaling three hundred seventy-nine acres (one acre to every one hundred and sixty inhabi tants), including an eleven-acre river front park, which was made possible oy reclaiming a vast tract of land, the building of one mile of terminal wall and one thousand feet of paved, sloping levee. The river front is municipally owned and the reclama tion of twenty-five additional acres is under way. The achievements of this city be speak for it an alert civic conscious ness. A splendid departmentized chamber of commerce, with traffic, credit, manufacturers’, wholesalers and jobbers,’ retailers,’ advertisers,’ salesmen’s and wom en’s bureaus; an active Rotary, Kiwanis, Gyro, and Exchange Club look after the commercial and civic development of the community. Nor are the agricultural interests of the vicinity neglected, for through N O R TH W E STE R N BANKER the Farm Bureau an unusually large number of boys and girls’ clubs have been fostered and some of these have gained national prominence. The business men of Davenport have joined with the farmers of the vicin ity in making possible the M issis sippi Valley Fair and Exposition, which is second in the state only to the Iowa State Fair at Des Moines. On account of her hotel facilities, the Blackhawk being the largest hotel in Iowa, Davenport is quite prominent as a convention city. Thousands of visitors each year are impressed with the beauty of the city, delighted with a moonlight ex cursion on the majestic Father of Waters, and entertained by a trip through the Rock Island Arsenal, the government’s largest munition factory. Register Life Progress The Register Life Insurance Com pany, of Davenport, is enjoying its thirty-third year of progress. It is representative of the highest stand ards in life insurance. The com pany was incorporated under the laws of Iowa, April 17, 1889, and commenced business April 22. It has had a consistently healthy, steady growth. It is a purely mu 81 tual company. There are no stock holders. That the company has been con ducted solely for the benefit of the policyholders is shown by the fine dividend record which the company has maintained. Its financial state ment as of December 31, 1921, showed business in force of $24,241,274.00; admitted assets of $3,247,726.27, and an unassigned sur plus of $151,746.57. This company has made a splendid record under the management of G. E. Decker, president and medical director, and A. E. Littig, secretary and treasurer. Observe Summer Banking Hours Muscatine, Iowa, banks have in augurated the W ednesday half holi day plan which is carried out annu ally during the summer months. The banks close their doors at 12 o ’clock for the remainder of the day. This rule will continue until September 15. W hether the mechants of Musca tine will adopt the W ednesday half holiday plan this summer is unde • cided. No agreement has been reached and no meeting called to dis cuss the plan. In the past the stores have been closed on W ednesday afternoons during July and August. Building Public Appreciation T HE dem and result of for R e giste r L ife public confidence Insurance is the that R e giste r L ife policies have built for this com pany. T he R egister L ife organization has not concentrated on building big production— but on building Public A ppreciation. It is a purely m utual com pany. H om e Office Its business is conducted for the benefit of its policy holders as show n by the fact that its dividends have continued in spite of the w orld w ar and a world epidem ic. T he sam e dividend scale is continued for 1922. T od ay this reputation fo r “ low net cost insurance” is a real selling factor that is passed to every R e g is ter L ife agent. R E G IS T E R LIFE G. E. DECKER, President Insurance Com pany A. E. LITTIG, Secretary and Treasurer DAVENPORT, IA. R ea d ers w ill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en tvriting to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 82 THE N OR TH W E STE R N BANKER June, 1922 Mr. B anker: What Would You Do If— there were a movement under way whereby 33J3% of all M O N E Y S D E P O S IT E D IN U N IT E D S T A T E S O W N E D B A N K S were to be withdrawn, pro-rated and D E P O S IT E D W IT H E U R O P E A N B A N K S? MR. B A N K E R : — Do you know that 33Vs% of F IR E IN S U R A N C E P R E M IU M S paid by A M E R IC A N P E O P L E , are now going to F oreign C ountries? MR. B A N K E R : — Do you know that approxim ately 1 1 % of the F ire Insurance P rem ium s paid by Iow ans go to Iow a owned C o m panies; the other 8 9 % goes to F oreign owned C om panies? MR. B A N K E R : — W o n ’t you, in your own interest, for the good of the greatest num ber, for our C om m on w ealth and the A m erica n people generally, a ssist us in keeping the profits from this m agnificent in v estm en t source right here at h om e? MR. B A N K E R : — T h e A m erica n Fire R e-Insurance C om pany w ill bring M IL L IO N S OF D O L L A R S ' from all over the U nited S tates into this territory w hich will he available for L O C A L IN V E S T M E N T and will be a bulw ark of stren gth to the hanking fraternity. MR. B A N K E R : — W e extend a cordial invitation to you to in vestigate thoroughly these facts. It is a vital situation and you should he in a position to educate your com m unity and instill in the m inds of your clientele “ A M E R IC A N C O M P A N IE S F O R A M E R IC A N P E O P L E .” TH E M A N A G E M E N T T h e basic principle of business success is having the right m en in the right place. T H E A M E R IC A N F IR E R E -IN S U R A N C E C O M P A N Y w ill not be handicapped by in efficient m an agem en t in any particular, nor im perilled by any experim ental activities. The follow in g is a list of its officers and directors. (It is proposed to increase the directorate by three m ore rep resentative m en and to create an E xecu tive A d visory Board of not less than fifteen ). A U G U S T E. S T E F F E N , P resident. B usiness m an and banker. R E U E L B. C O O K , V ice President. & Balluff. O T T O H IL L , T reasurer. Savin gs Bank. V ice A tto rn ey, of the firm Cook P resident L O U IS E. R O D D E W IG , Secretary. of the D avenport A tto rn ey. W A Y N E G. C O O K , General Counsel. O S C A R C. S 'T A B Y , V ice P resident. ding C om pany. P resident D avenport Bed C H A R L E S W . BO RG , V ice P resident. P resident Beck, M anufacturers of A utom obile Clutches. Borg and P. J. K IE F F E R , V ice P resident and G eneral U nderw riter. P resident A m erica n General Insurance Co., of Chicago. P resid ent P. J. K ie ffe r Co., General Insurance, Chicago. V ice P resident Zenith Com pany, Inc., M inne apolis. V ice P resident The K e y sto n e T ru st and S avings Bank, Chicago. F orm er A ssista n t M anager in the U. S. of Svea F ire and L ife Insurance Co., of Sw eden. F orm er U . S. S ecreta ry C hristiania General of N orw ay. F orm er T reasurer H udson Insurance Co., of N e w Y ork. D A V ID E. S P A H R , G eneral M anager. L IN U S L O N G , O rganization Director. American Fire R e-Insurance Com pany Davenport, Iowa 404 Kahl Building Telephone, Davenport 8498 R ea d ers will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, THE 1922 N OR TH W E STE R N 83 BANKER Established 1883 OFFICERS OFFICERS J. H . HASS G U S T A V STUEBEN President Cashier L EON J. W . W A T Z E K H . HASS Vice-President Assistant Cashier H . J. Z E U C H GEO. L. H A M A N N Vice-President Assistant Cashier — A Symbol of Security — Conservative in matters pertaining to the safety of the money of our clients. Progressive in the continual enlargement of the services we offer our clients. We will welcome a visit front you while in Davenport Scott C o u n ty Savings B ank TOTAL ASSETS OVER DAVENPORT, IOW A R ea d ers will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 84 THE The N O R TH W E STE R N BANKER GUARANTY LIFE Stands fo r Service — Stability Satisfaction UR banker agents keenly appre ciate the kind of cooperation they receive from this company. This is our policy. W e render the same high class service to agents whose busi ness is small (but none the less im portant to him ) as we do to our largest agencies. There is satisfaction and profit in the possession of such an agency. You will find our bank agency proposi tion very attractive. W e suggest you write today. Guaranty Life INSURANCE C O M P A N Y Davenport, Iowa L. J. DOUGHERTY, Secretary and General Manager R eaders will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 June, THE 1922 N O R TH W E STE R N BANKER H om e o f D aven port Savings Bank Where Service Is Held M ost Important O ver a Half C e n tu ry o f Service OFFICERS J. F. DOW7 P resid en t O T T O H IL L V ice-P residen t A U G U S T E. STEFFEN V ice-P residen t S M IT H B L A C K M A N C ashier H EN RY H. TRUE A ssistant Cashier ROY J. K R A B B E N H O E F T A ssistant Cashier The Davenport Savings Bank was established in 1870. It has already started its second half century of service. Today it occupies a distinctive place in the financial activities of this state. Old in years but youthful in spirit, conservative in management but progressive in ideas— never losing the human touch in business this bank is stronger and better able to serve you than ever before. W e shall welcome the opportunity of cooperating with you. Total Resources Over $6,000,000.00 D A V E N PO R T SAVINGS BANK DAVENPORT R ea d ers ivill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85 86 THE N OR TH W E STE R N Igfft D R O V E R S BANKER S E R V I C E Ì fj 1 8 8 2 - 1 9 2 2 40 Years of Conservative Banking The Spirit of Cordial Cooperation years of successful banking have built up within the Drovers’ organization a homey atmosphere of friendly cooperation—-a willing spirit that finds genuine pleasure in every opportunity to assist our correspondents or their patrons. 40 The Drovers offers a financial service that completely covers every requirement of out-of-town banks—-prompt ly and efficiently; but we are always glad to help out with the sort of favors you would askof apersonal friend. You will find here a spirit of cordial cooperation that makes business relations pleasant as well as profitable. We would appreciate an opportunity to tell you of it in detail. Direct M em ber Chicago Clearing House Association t ir h v e r s J J N a tiu n a l B ank Union Sto ckYhrds - Chicago D R O V E R S -S E R V IC E . R ea d ers will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 June, THE 1922 I O W A N OR TH W E STE R N BANKER B A N K 87 N E W S COUNCIL OF ADMINISTRATION Iowa Bankers Association A D M I N I S T R A T I V E C O M M IT T E E P r a n k B . Y e t t e r , P r e s id e n t, V ic e -P r e s . I o w a N a tio n a l B a n k . . . D a v e n p o r t E . R . C a m p b e l l, V i c e - P r e s i d e n t , V .- P . C o m m e r c i a l N a t ’ l B a n k . . F t . D o d g e C. P . J o r d a n , T r e a s u r e r , P r e s i d e n t F i r s t S a v i n g s B a n k ...............S u t h e r l a n d F r a n k W a r n e r , S e c r e t a r y ................................................................................... D e s M o i n e s FRANK YETTER P r e s id e n t G R O U P C H A IR M E N G. J. S lo b e , C h m . G r o u p 1, C a s h i e r N o r t h w e s t e r n S t a t e B a n k , O r a n g e C it y F . B . D a v is , C h m . G r o u p 2 ...............C a s h i e r F a r m e r s S a v i n g s B a n k , M a n s o n M. W . E l l i s , C h m . G r o u p 3 . . .P r e s . S e c u r i t y T r . a n d S a v . B k ., C h a r l e s C it y F . S. R i c h a r d s , C h m . G r o u p 4 . . . . C a s h i e r F i r s t N a t i o n a l B a n k , M c G r e g o r C . F . C a d w e ll , C h m . G r o u p 5 ................. C a s h i e r F i r s t N a t i o n a l B a n k , E l l i o t t O. F . E c k l u n d , C h m . G r o u p 6 ............ C a s h i e r F i r s t N a t i o n a l B a n k , N e w t o n E d m u n d W . M ille r , C hm . G r o u p 7 . . P r e s . C o m . N a tio n a l B a n k , W a t e r l o o J o e K e l s o , C h m . G r o u p 8 ............ C a s h i e r B a n k o f J. K e l s o & C o ., B e l l e v u e N. C. H o f f m a n , C h m . G r o u p 9, C a s h . M u r r a y B k . o f S im m o n s & C o ., M u r r a y C. D . E v a n s , C h m . G r o u p 1 0 . .C a s h i e r S o u t h O t t u m w a S v g s . B k ., O t t u m w a W a l k e r D . H a n n a , C h m . G r o u p 1 1 . . V i c e - P r e s . B a n k o f W i n f i e ld , W i n f i e ld Li. A . A n d r e w , e x - o f f i c i o ............ P r e s i d e n t C it i z e n s S a v i n g s B a n k , O t t u m w a The Peoples State Bank, West Liberty, la. the bank’s private vault at the left and the customer’s safety deposit box vault at the right. Other features of the new building include a customers’ room, a rest room for ladies, a special banking window designed for use by juvenile customers. It has a mezzanine floor with a special directors/ room. A feature of the building is its large window space which will almost eliminate the need for artificial light. Officers of this strong Iowa insti tution who have planned and worked out the completion of this fine new building are : President, Ray W hitacre; vice president, A. H. McClun ; cashier, R oy Tharp ; assistant cash ier, R oy Tharpe. The Peoples State was for many years the only banking institution between Davenport and Iowa City and between Cedar Rap ids and W apello. Group Officers Elected Hundreds of customers and friends of the Peoples State Bank of W est Liberty, Iowa, were present at the opening of the doors of the new P e o ples State Bank building at W est Liberty, Iowa, which held a formal opening of the new structure on the fifty-fourth anniversary of that in stitution. The new building has a gray gran ite base with pressed brick above. It has a frontage of forty-four feet and is eighty feet in depth. The build ing is two stories. A t the left of the entrance are the officers’ room, desks and chairs, and at the south side of this room is the telephone booth, containing not only connections with the local exchange, but a private panel through which https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis connections can be made with all de partments of the banking house. North from the officers’ room is the working space, oak-finished and like the remainder of the building, excepting lobby and outer stairway, is floored in maroon mastic covering. Counters and shelves in the working space are of finished oak. This work ing space extends also to the right, at the rear, and across the front of the vaults. A t the left north end of the bank ing room is the machine room where in the bookkeeping machinery will be kept. A stairway leads from this to a similar room on the mezzanine floor. The two large burglar and fire proof vaults are at the center rear, The following officers were elected by the various Iowa group meetings that have met up to the time this goes to press: Group 6— Chairman, O. F. Eckland, cashier First National Bank, N ew ton; secretary, S. L. Rutt, pres ident Abram Rutt National Bank, Casey. Group 8— Chairman, Joe Kelso, cashier Bank of J. Kelso & Co., Bellevue; secretary, A. M. Price, president First National, DeW itt. Group 10— Chairman, C. D. Evans, cashier South Ottumwa Savings Bank, O ttum w a; secretary, R oy T. Alford, cashier First National, Albia. Only the even numbered groups will elect officers this year, the odd numbers electing in 1923. 88 THE N OR TH W E STE R N BANKER June, 1922 H. Stahl Heads County Association CENTRAL TRUST COMPANY OF DES MOINES CAPITAL SURPLUS $1,000,000.00 $ 735,000.00 Will receive and execute T r u s t s of every description, acting as Executor, Administrator, Guardian and Trustee. The S e c u r i t y afforded by the A m p l e C a p i t a l of this Company, the constant supervision of its affairs by competent Directors and its convenience of Location render its employment for the purposes named peculiarly advantageous. The Company buys and sells bonds, warrants, special assessment certificates, first mortgages and other investment paper. O F F IC E R S A N D D IR E C T O R S SC O T T R A W S O N , P re sid e n t C H A S . 1>. G IL C R E S T , V ic e -P r e a id e n t L . M . G R IM E S , V ic e -P r o s .— T r u s t s T A Y L O R G R IM E S , V lc e -P r e s Loans R . E . J A C K S O N , A u d i t o r -A s s i s t a n t Sec. C h a rle s L . G ilc r e st M a rk L . J o h n so n R . E . R o llin s L . M . G rim e s L . C. K u r t z H . E . R um sey T a y lo r G rim e s H e n r y S. N olle n M . S am ish W . C. H a rb a c h C h a rle s A . R a w so n W . E . Tone F . W . H u b b e ll S c o tt R a w s o n N. M . W llc h i n s k l To Protect Earning Power As a banker you are interested in protecting the earning power of your client that he may accumulate the surplus he plans. Accident Insurance is the answer. you to offer him this protection. A contract with us will enable The Accident Department of this Company offers policies with liberal benefits at a nominal cost to the insured. Send for sample policy. Address: Accident Department M IS S O U R I STATE L IF E Insurance Company M . E. SINGLETON President LIFE ACCIDENT THE The dence HOM E OFFICE St. Louis b est HEALTH GROUP BEST EV IDENCE evi of our ex cellen t service grow in g banking is our list of corres p o n d e n t banks. H ere you w ill find an in sti tution sincerely anxious to serve you. T h e M u scatin e S tate over h alf a century. Bank has been serving banks and bankers for MUSCATINE STATE BANK M L™ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E H ugo H. Stahl, vice president of the Home Savings Bank, Davenport, Iowa, was elected president of the Scott County Bankers Association at the annual meeting and election held at the Davenport Chamber of Commerce. Mr. Stahl succeeds M. H. Calderwood of Eldridge. P. J. Thede, cashier of the Dixon Savings Bank, was elected vice president ; W illiam Burmann, cash ier of the Northwest Davenport Savings Bank, was elected secre tary, and A. M. Sindt, cashier of the Farmers Savings Bank, W alcott, was elected treasurer. Practically every bank in Scott county was represented at the meeting. A considerable amount of routine business was transacted after which the bankers heard a forceful address by Rev. Arthur Buckner, pastor of Edwards Con gregational Church, on “ Commu nity Co-operation.” Clayton Bankers Meet At Monona A large attendance of bankers at tended the meeting of the Clayton County Bankers Association held at Monona. Following a fine banquet that was served the regular business of the association was taken up and talks made by W . B. Daubenberger of M cG regor; D. D. Murphy of Elkader, and other speakers. Farmers State, Marathon A t a meeting of the board of di rectors of the Farmers State Bank of Storm Lake, Iowa, W allace W . Bennett, cashier, was made vice president and Helmer C. Berger was elected cashier. Mr. Bennett has been cashier of the Farmers State for twelve years. He will retain his interests in the bank, both as an of ficer and director. The active man agement of the institution will be carried on by Mr. Berger, who was for many years cashier of the First National Bank of Rembrandt. J. F. Hart Named for Council The Des Moines Chapter of the American Institute of Banking has placed the name of James F. Hart, assistant cashier of the Iowa Nation al Bank, Des Moines, Iowa, in nomi nation for the executive council of the American Institute of Banking, to be voted on at Portland at the national convention in July. Mr. Hart has been in the banking business in Des Moines 22 years and has received the endorsement of Des Moines bankers for this position. He also has the endorsement of all the chapters of Iowa. June, 1922 THE N O R TH W E STE R N BANKER T he M ay 18th issue of The Iowa Homestead contained a signed article b y the pub lisher, D ante M . Pierce, ap proving the stand taken on vital issues by G roup Six of the Iowa Bankers Associa tion at th e ir re c e n t D es M oines meeting. O ne h u n d re d a n d s i x t y th o u s a n d farm homes received t he M ay eighteenth issue of The Iowa Homestead —m ore than one hundred and th irty thousand of them in Iowa. The Iowa Homestead, Des Moines, Iowa Iowa’s O ld e s t and L a r g e s t Farm Paper R ea d ers w ill c o n fe r a fa v o r b y m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to o u r a d v e r tis e r s . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 89 90 THE N OR TH W E STE R N BANKER J une, 1922 Banks and business houses sometimes find themselves facing problems which cannot be best solved by men sitting in offices many miles away. thorough The case may call for knowledge of the immediate ground. The Des Moines National fnlly realizes this and, when necessary, does not hesitate to send a representative. Having obtained by this method a complete understanding of the situation, we are better able to meet our customers' requirements. In this and many other ways the Des Moines National strives to make its connections bonds of friendship and real service. Des Moines National Bank Des M oines, Iowa R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE First National Gets Fourth Charter For the fourth time in the history of the institution the charter of the First National Bank of Davenport, Iowa, has been renewed and the first national bank established in the United States has been authorized for corporate existence to May 1, 1942. Like the well known brook of Tennyson’s poems, which “ goes on forever,” the First National Bank of Davenport almost outlives the memory of man. Not only occupy ing a niche in the hall of fame as the first (national bank in the United States to be chartered under the Na tional Bank of 1863, but likewise in its close relation to the progress of eastern Iowa and Davenport, in par ticular, this sturdy financial bulwark boasts an extremely interesting h is tory. Students of early banking history in the middle west can gain a great deal of valuable information from reading “ Histor}^ of the First Na tional Bank in the United States,” published through Rand M cNally & Co. by the First National Bank at Davenport some time ago. It re views thoroughly the history of finance and the origin of our nation al banking laws from the early part of the nineteenth century to the present date. The First National of Davenport, as the book shows, was chartered in 1862 with $100,000 capital. Nine presidents, beginning with Austin Corbin and ending with President A. F. Dawson, have guided the des tinies of this pioneer corporation. Incidentally, for two days following the opening of its doors in 1863, the First National enjoyed the dis tinction of not only being the first, but likewise the only national bank in the country. Davenport as a city has had a fine growth during its existence. Indus trially the city has been a leader for years, partly because of its strategic situation in the rich Mississippi val ley and partly on account of the vision and foresight of men who have administered the affairs of financial institutions such as the First National Bank. Officers who are at the head of this bank at the present time include: President, A. F. D aw son; vice president, Joe R. Lane; cashier, Irvin J. Green; as sistant cashiers, C. R. Schmidt and P. A. Tornquist. Members of the board are: G. W . Cable. A. F. D aw son, J. W . Gilchrist, Irvin J. Green, George S. Johnson, Joe R. Lane, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O R TH W E STE R N BANKER ALBERT F. BALCH, President CHARLES C. TRINE, Vice President 91 WILLIAM G. STRICKLER, Vice Pres. HARRY W. JENNINGS, Cashier MEMBER OF THE FEDERAL RESERVE SYSTEM O ver F o r ty Y e a r s o f C onservative B an k in g a« Marshalltown State Bank MARSHALLTOWN, IOWA (It Does Make a Difference Where You Bank) DES MOINES STOCK EXCHANGE Iowa Corporation Stock BOUGHT and SOLD Bankers and Investors find the Des Moines Stock Exchange of great value to them in the selection of safe investments. The Des Moines Stock Exchange acts as a med ium through which you can buy the particular stock you seek at the lowest market price. If you want to dispose of an issue there is no better place to find a buyer than on our list. To buy or sell, you will do better in your dealing with the Des Moines Stock Exchange than you can p os sibly trying to handle it alone. Quotation and Market Letter on request. T h is R equ est w ill bring you inform ation on stock s and our P artial P aym en t P lan w ithout the lea st obligation to you. Des M oines S tock E xchange, F lem in g Bldg., D es M oines, Iowa. ..................................................................................... I w ill appreciate your sending 1922 . m e inform ation on the stock of ............................................................... ............................................... and also your m o st recent “ M ark et L e tte r,” giving la test quotations on Iow a stocks. B ank ...................................................................................................................... Officer ................................................................................................................... T o w n ..................................................................... S ta te .................................... 92 THE DO YOU CLEAR all N O R TH W E STE R N your remittances BANKER June, 1922 THROUGH NEW YORK? Of course not— You use the nearest correspondent Bank Western Life Home Office and Agency is within 2 4 hours of you If occasion requires, you have the benefit of immediate service. A death loss occurs among your customers. There is immediate need of cash for the family. Western Life Service is as near you as your telephone. Our Supervisors during the Flu Epidemic were in many cases in the Bank with a check in full settlement before the funeral was held. nsurancQCompari/ F DES M OINES, IOWA Our service does not stop when we issue a man a Policy It continues during the insured’s lifetime and is rendered to the beneficiary and family thereafter. No waits. No delays. Prompt service always. If you want your Insurance Department a profitable asset to your Bank, you can do so by securing our “ Iowa Bank A g e n c y ” We take particular pains to serve Iowa Banks. O riginators of “ C h ild ’s E n d o w m e n t” Insurance OFFICERS JAS. H . JAM ISON H A R R Y D. ST. JOHN A . D . S T R U T H ER S President Assistant Secretary Secretary and Treasurer I. P. M A N T Z W . P. P H ILLIP S M . L. T U R N E R , M . D. Actuary Auditor Medical Director R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE Prank W . Mueller, M. N. Richard son, Carl Richter and August E. Steffen. The First National Bank has oc cupied but one other building than its present quarters during its sixtyyears existence. It was known in early years as “ The Marble Bank,” one of the handsomest structures in the city. The old building suffered a severe fire loss in 1882, but was immediately remodeled while tem porary quarters were used. The present structure at the corner of Main and Second streets was erected and occupied in 1919 and is strictly in line with the long list of beautiful Iowa banking homes. Former Iowa Banker Dies W . H. Miller, president of the Bank of Harvey, Illinois, and at one time a banker of Fort Madison, Iowa, died recently at his home in Harvey. Mr. Miller served as cash ier of the Fort Madison Savings Bank and the First National Bank of Fort Madison thirty-two years ago. N OR TH W E STE R N BANKER Name A. H. Evans President Several changes were made by the directors of the W illiamsburg Sav ings Bank, Williamsburg, Iowa, at their last meeting. T o fill the va cancy left by the death of the late J. F. Lyle, A. H. Evans, formerly cashier, was named president, and D. J. Lewis was promoted from assist ant cashier to cashier. John Kenney was elected a member of the board of directors to fill the vacancy left by Mr. Lyle’s death. Mr. Evans, the new president, has been with the W illiamsburg institu tion for a period of fifteen years and is well known in banking circles in his section of the state. Mr. Lewis, the new cashier, has been with the bank for nineteen years. The W il liamsburg Savings Bank is capi talized at $100,000 and is the largest bank in Iowa county. Serious Blaze Averted at Knoxville The Citizens National Bank of Knoxville, Iowa, had a narrow es cape from fire when a blaze was dis Tama Banker Married D. E. Goodell, cashier of the Com covered at night in the basement. mercial Savings Bank of Tama, Prompt action by the local fire de Iowa, was married May 1st to Mrs. partment saved the building. Dam Edith Pearl Hart of Des Moines. age to the extent of $200 was done They will make their home in Tama. to the bank. Farmers State, Monona The Farmers State of Monona, Iowa, has made extensive changes in the interior decorations of its di rectors’ and banking rooms. Officers of this institution are : President, F. G. Drahn ; vice president, A. J. W inkler; cashier, K, W . Rash; as sistant cashier, Edw. H. Winkler. Buys Gibson Block Negotiations were completed re cently for the acquisition of the Gib son block, 607 Locust street, Des Moines, by the Bankers’ Mortgage Company from John Gibson, presi dent of the Mechanics Savings Bank. Conclusion of the transaction was announced by B. Frank Kauffman, president of the Bankers Mortgage Company. Mr. Kauffman said the considera tion was $350,000. He added that the property will be transferred to the Bankers’ Building company, a sub sidiary of the Bankers’ Mortgage company. Both concerns are affili ated with the Bankers’ Trust company, whose building at Sixth and Locust adjoins the Gibson block. Good consciences expect to be treated with perfect confidence.— Hugo. FIRST NATIONAL BANK AND IOWA STATE SAVINGS BANK BURLINGTON, IOWA Combined Resources $9,100,000.00 We offer complete facilities for Banks and Bankers in Southeastern Iowa in all Banking departments G. E. PERKINS, Chm. of the Board E. WEBBLES, President CORRESPONDENCE SOLICITED R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 93 94 THE N O R TH W E STE R N BANKER June, 1922 □ □ Our Fiftieth Year in Business ( A H a lf Century o f Service) E sta blish ed 1872 ^|gj| IN THE days of '72 when Des Moines was but a town, the Valley Bank was founded by a group of men who had faith in the future of Des Moines -and Iowa. Today the Valley National Bank is stronger and better able to serve you than ever before. This hank has rubbed elbows long enough with hanking problems to be able to give you “ Service Superior.” The faith of those early business pioneers has been justi fied. Don't you want to do busi ness w ith this kin d of a bank? V A L L E Y N A T IO N A L B A N K VALLEY SAVINGS BANK Combined Capital, Surplus and Undivided Profits $1,000,000.00 DES M O IN E S, IO W A OFFICERS R. A . C R A W F O R D President C. T. COLE, Jr. D. S. C H A M B E R L A IN \ ice President Vice President W . E. B A R R E T T JOHN H. G IN SBE R G CL A R EN C E M . C O R N W E L L Cashier Assistant Cashier Assistant Cashier □ H □ R eaders w ill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE Endorse L. A. Andrew L. A. Andrew, president of the Citizens Savings Bank, Ottumwa, was endorsed by his group, at their annual meeting on May 11th, for one of the councilmen of the A. B. A. to be elected at the Davenport conven tion. Mr. Andrew has served as vice president for Iowa two different times, during one of which more new members were secured in this state than in any other state in the Union. New Massena State Bank Opened The firing of guns, and a general display of the holiday spirit made the opening of the new Massena State Bank an occasion for a general celebration at Messana, Iowa. F o l lowing weeks of reorganization and work by the state banking depart ment, this institution recently threw open its doors to the public with the follow ing new management in charge : President, Robert Angus ; vice president, F. E. D o w n e y ; cash ier, John H usting; assistant cash iers, E. E. Lien and Ralph Hunter. Directors include: Robert Angus, R. J. Bagshaw, A. H. W alker, Frank Ruch, Martin Johnson, Henry D. Holaday and F. E. Downey. Mr. Husting, the new cashier, is N ORTH W ESTERN BANKER a banker of wide experience. He was connected with the First N a tional Bank of Nora Springs and with Shafer Bros, of New Hampton, Iowa, for a period of fourteen years. Mr. Lien, assistant cashier, was cashier of the old institution and has a wide acquaintance in and near Massena. Mr. Hunter is likewise well known in the community. The new bank is capitalized at 95 $25,000 and is backed by a large number of strong stockholders. W h y do so many men never amount to anything? Because they don’t think.— Edison. “ Do you know Quaverly?” “ Not at all; I’ve only met him when he was with his wife.” — Life. Sioux N ational Bank SIOUX CITY, IOWA Capital and Surplus $500,000.00 W e offer a bank large enough to inspire the confidence of its customers, but not too large to give every con sideration to the interests of every correspondent. O F F I C E R S A N D D IR E C T O R S J. A . M A G O U N , P r e s i d e n t I. M . L Y O N , V i c e P r e s i d e n t C. D . V A N D Y K E , V i c e P r e s i d e n t T. P . H A R R IN G T O N , V ic e P r e s id e n t B. H . K IN G S B U R Y , V ic e P r e s id e n t C. M . M A G O U N , C a s h i e r E. L. K I R K K I R K K IN G S B U R Y , A s s t. C a s h ie r F . E. G IL L H e re Y o u OFFICERS Our Progress As Shown by Figures D E P O S IT S Jan. 1st. 1915 ............. $1,211,702.48 1916 ............. 1,248,443.14 1917 ............. 1,591,734.79 1918 ............. 1,933,483.32 1919 ....... . 2,007,408.10 1920 _______ 1921 ............. 2,667,012.00 1922 ............. 2,757,420.44 W ill F in d W . B. L U T Z P resident B E R T M cK E E M. H . C O H E N an institution built upon the Arm foundation of personal service. V ice P residents C. M. W A Y H ere you w ill find bank officials w ith a real desire to help -— and to serve. Cashier F. C. S U T T O N T h is spirit accounts for the stead y grow th of this institu tion. A sst. C ashier Y e a r after year we have w atched our bank grow in strength and in pow er to serve, and we are glad to attribute this h ealth y grow th to personal service w e gladly render our clients. DIRECTORS 2,246,785.36 M. H. C O H E N GE O . C. H A R G R O V E W . B. L U T Z Such a service we are pleased to offer you. Home Savings Bank East Sixth and BE R T M cK E E P. B. S'H E R R IF F W ALTER ST. JO H N C. M. W A Y Locust Streets DES M O IN E S , I O W A R eaders will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 96 N O RTH W ESTERN June, 1922 BANKER Endorse Henderson for President The following resolution was adopted at the meeting of Group 6, Iowa Bankers Association, at Des Moines, May 9, 1922 : “ Group 6 will present to the bankers of the state at the June convention at Davenport, a high class man and a safe and sane banker for the office of president of the state association for the ensuing year, A. M. Henderson, of Story City» cashier of the First National Bank of Citizens National Bank Clinton, Iowa A ssets O ver S ix M illion Dollars DIRECTORS AND OFFICERS A L F R E D G . S M I T H , C h a irm an A L F R E D C . S M I T H , P res ident H . W . S E A M A N , V ice P res ident P res ident C lin to n R e frig e ra tin g Co. A . H . K E R S T I N G , V ic e P resident V ice P res ident and G eneral M a n a g er C lin to n Corn S yru p R efining Co. G . L . C U R T I S , V ice P resident P res id en t C u rtis Com panies, In c. G. W . D U L A N Y , JR . P res id en t Eclipse L u m b e r Co. J. P E T E R S O N P resident Peterson, Bell & Co. M . J. G A B R IE L P res ident G ab rie l L u m b e r & Fuel Co. L. P. A L L E N P res id en t A lle n P rin tin g Co. M . H. T H IE L E N S ecretary Joyce L u m b e r Co. J. O. S H A F F F a rm e r and L iv e S tock D e ale r B. M . JA C O B S EN P ost M a s ter E . J . C U R T IS Vice P res id en t C u r tis Bros. & C. A . A R M S T R O N G Pres. C. F . C u rtis Com pany W . R. S M IT H Assistant G eneral M a n a g er C lin to n Corn S yru p R efining Co O . P. P E T T Y , C ashier J . H . N IS S E N , Assistant C ashier H . G . K R A M E R , Assistant Cashier Over Fifty Years Under Same Management FIRST NATIONAL BANK OF MASON C ITY, IOWA Capital and Surplus Deposits $4,417,848 $500,000 W e solicit accounts of banks, cor porations and i ndi viduals C H A R L E S H . M cIV ID E R , P r e s id e n t F R E D E . K E E L E R , V ie e P r e s id e n t W I L L I S G. C. B A G L E Y , V ie e P re sid e n t H A N F O R D M cIV ID E R , V ic e P re s id e n t C A R L A . P A R K E R , V ic e P re sid e n t R O B E R T P . S M IT H , C a sliier H A R O L D V . B U L L , A s s is t a n t C a sh ie r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A. M. H EN D ER SO N that place, and we endorse him and recommend him to the bankers of the state without reservation.” Mr. Henderson was also endorsed for president of the I. B. A. in a reso lution adopted at a meeting of the Story County Bankers Association at Nevada, May 17, 1922: “ W e, the bankers of Story county, beg to join in the resolutions of Group 6 of the Iowa Bankers Association as adopted at the group meeting at Des Moines on May 9th, particularly in the en dorsement of A. M. Henderson of Story City, for president of the state association. “ W e, too, endorse him without reservation and we present him as a candidate before the coming state convention at Davenport on June 6th and 7th next, and our profound hope is that he will be accorded the unanimous vote of the convention, which he well deserves. “ W e, his neighbors, who know him best, commend him to the bankers of Iowa for his personal worth, his integrity and qualifications.” June, 1922 THE To Remodel Bank At Burlington Contracts for the expenditure of $100,000 in remodeling the Iowa State Bank building at Burlington, Iowa, have been let and work has been started to make a fine home for the Iowa State Savings Bank and the First National Bank of Burling ton. The First National, now lo cated across Third street from the Iowa State Bank, will remain in present quarters until the remodeling is completed. The Iowa State Sav ings will remain in the building as long as the work will permit, then will occupy a tw o-story building next to the bank on Third street. The two banks will retain their sep arate identity, according to officials. W hen remodeled, the main en trance will be the same as at present, with another entrance from the ele vator lobby in the rear. Both insti tutions will occupy the main floor. In the basement will be a modern vault, new business department, publicity office, employes rooms and other accommodations. The build ing when completed will be a worthy addition to Iow a’s many fine banking homes. Hartley State Observes Birthday The Hartley State Bank, Hartley, Iowa, recently celebrated its fortieth anniversary. This institution, origi nally opened up as a private institu tion, was changed to the Hartley State Bank in 1887. It now has combined capital and surplus of $80,000. Officers are: Frank Patch, president; F. R. Patch, vice presi dent; E. L. Randolph, Cashier. With Ottumwa National N. P. Herrington has resigned as deputy collector of internal revenue at Ottumwa, Iowa, to accept a posi tion as auditor for the Ottumwa Na tional Bank of Ottumwa, Iowa. Mr. Herrington is succeeded at O t tumwa by Paul E. Garrett, formerly of Eddyville, Iowa. A. H. Evans Elected President At a recent meeting of stockholders of the Williamsburg Savings Bark, Williamsburg, Iowa, A. H. Evans, cashier, was elected president to fill the vacancy left by the death of the late Mr. J. F. Lytle. D. J. Lewis, as sistant cashier, was promoted to the cashiership and John Kenney was elected a director. Mr. Evans, the new president, has been with the bank for fifteen years. Mr. Lewis, the new cashier, has been with the institution for a period of nineteen years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O RTH W ESTERN BANKER 97 THE 98 N ORTH W ESTERN BANKER June, 1922 Carroll County Bankers Meet IO W A STATE T R A V E L IN G M EN’S ASSOCIATION THOSE ELIGIBLE TO MEMBERSHIP ARE: all w ho are over 18 and not m ore than 55 years of age, w ho travel for business purposes any portion of the year in addition to their other duties. all m en who travel and are engaged in business the duties of w hich are not m ore hazardous than those of a traveling salesm an . T h is A sso cia tio n O ffers: A ccid en t Insurance at actual cost -— It has never exceeded $9.00 a year. m any bankers are m em bers of this association. have n ot joined, send for an application now. If you H. E. REX, Sec’y and Treas. F le m in g B u ild in g D ES M O IN E S , IO W A D e p o s ito r s in Y o u r B a n k w h e n t r a v e lin g - a b r o a d p r a c t i c a l l y h a v e a l l t h e a d v a n t a g e s t h e y w o u l d e n j o y i f t h e i r b a n k a c c o u n t w e r e in e a c h c i t y t h e y v i s i t i f y o u s u p p l y th em w ith — K. N. & K. Letters of Credit and Travel Checks w h ic h a re k n o w n a n d h o n o r e d t h r o u g h o u t th e w o r ld . R e c o g n i z e d a s t h e s a f e s t a n d m o s t c o n v e n i e n t f o r m in w h i c h t o c a r r y t r a v e l fu n d s , t h e y f u r t h e r p r o t e c t t h e t r a v e l e r b e c a u s e t h e y p r o v i d e a lw a y s a s u re a n d s ta b le m e a n s o f o b t a in in g m o n e y fr o m a n y o f o u r t h o u s a n d s o f c o r r e s p o n d e n t s t h r o u g h o u t th e w o r ld . P l a c e K . N. & K . f a c i l i t i e s a t th e s e r v ic e o f y o u r d e p o s ito r s . W r it e f o r p a r t ic u la r s 120 B road w ay Knauth.Nachod & Kuhne NEW YORK The following' officers were re elected to head the Carroll County Bankers Association at a recent meeting held at the Burke Hotel, Carroll, Iow a: President, Leo J. W egman, Carroll; vice president, A. F. Greenwaldt, Coon Rapids; secre tary, G. J. Hess, C arroll; treasurer, H. W . Porter, Glidden. Vigilance plans were taken up at the meeting and the members heard an address at the evening banquet by Frank Warner, secretary of the state association. Monroe Bankers Meet at Albia The annual meeting of the Monroe County Bankers Association was held recently at the Stevens Hotel, Albia, Iowa. Frank Warner, state association secretary, was the guest of the evening and talked on county vigilance work. The association plans to hold monthly meetings throughout the year. Officers of the association are : President, J. A. Canning, Peoples National, Albia ; vice president, R. T. Mason, Iowa Trust & Savings, A l bia; secretary-treasurer, C. M. Wren, Farmers & Merchants Bank of Lovilia. S. C. Hays Elected Vice President S. C. Hays, of Armstrong, Iowa, has been elected vice president of the Ringsted State Bank of Ringsted, Iowa. Mr. Hays was cashier of the State Bank of Armstrong for seven teen years. During the past three years he has been associated with B. L. Clark in the real estate and insur ance business at Armstrong. Grundy County Bankers Elect At the annual meeting of the Grundy County Bankers A ssocia tion held at Grundy Center, Iowa, the following officers were elected for the year : President, Thos. L. Evans, president Farmers Savings, Beaman; vice president, J. F. W heel er, cashier First National, Conrad; secretary-treasurer, R. J. Kuehl, cashier Grundy County National, Grundy Center. State Bank of Maxwell At the annual meeting of the P eo ples State Bank of Maxwell, Iowa, the entire directorate and officiary were re-elected for the ensuing year. The officers include: President, S. E. C oop er; vice president, Harding W itm er; cashier, O. W . Parker; as sistant cashier, Carl Trout. Direct ors are: S. E. Cooper, W . J. Hartung, Harding W itmer, O. W . Parker, Dr. C. F. Hatcher, Henry Heiner and E. R. Robison. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, THE 1922 N ORTH W ESTERN 99 BANKER Y o u r S u ccess— Y o u r G row th --------- Y our Business Li f e -—is dependent upon your understanding and ability to take advantage of the S u p e r -V ita lity o f the I n v e s tm e n t M a r k e t Business rings with a new confidence because our “ Financial Giant,” tlie American investor “ has put bis cliest at the dis posal of business and business lias been revitalized.” A Cleveland Discount Co. Bonds OFFER OPPORTUNITIES Does Y our Rank Have the Advantage of a Bond Department? 1. Cleveland Discount Co. is the second larg est mortgage company in tlie United States. 2. Paid up capital and surplus of more than ten million dollars— assets 22 million. 3. Unconditional guarantee of principal and interest by com pany. 4. Bonds sold on install^ ment plan. 5. Company will make loans or remarket bonds for its cus tomers, charging a reasonable fee. Detailed Information Concerning Our Bond Department Gladly Furnished on Request Guaranteed First M ortgage Bonds on Real Estate E.G. Ra n d a l l & Co. GUARANTEED FIRST MORTGAGE BONDS IO W A REPRESENTATIVES CLEVELAND DISCOUNT COM PANY STATE OFFICE Old Colony Building Tenth and Grand DES MOINES, IOWA CLEVELAND, OHIO BRANCH OFFICES THROUCI IOUT~ 10\VA R ea d ers will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 100 Union County Bankers’ Meeting The annual meeting of the mem bers of the Union County Bankers Association, which was organized about a year ago, was held one eve ning recently at the Iowana Hotel in Creston, Iowa. Fifteen bankers, representing the fifteen different Union county banks located in Creston, Afton, Lorimor, Shannon City, Arispe, Kent, Crom well and Spaulding, were in attend ance. The annual election of officers was held, the follow ing officers were elected for the ensuing year : Robert Barnum, Afton, president. N O RTH W ESTERN June, 1922 BANKER W m . Pierson, Afton, secretary. M. I. Roberts, Shannon City, treasurer. Mr. Barnum is connected with the Citizens Bank at Afton ; Mr. Pierson with the Afton Savings Bank and Mr. Roberts with the First National Bank at Shannon City. The meeting was a very interest ing one and a banquet was served immediately follow ing the annual meeting. M. E. Tate Receives Appointment M. E. Tate, cashier of the Security State Bank of Keokuk, Iowa, was ap pointed a member of the executive council of the American Bankers A s sociation and attended the spring meeting of that body held May 8th- There is no thought in any mind but it quickly tends to convert itself into a power.— Emerson. M. E . T A T E The cradle of modern textiles IT H crude spinning wheel and wooden loom, Colonial weavers of New England produced cloth equal to Europe’s best. In fluenced perhaps by fine Oriental cloth imported by adventurous sailormen, they improved in skill each year. W Certain families excelled in the art, and cloth woven in these homes was highly prized. Mechanically inclined neighbors helped invent faster working devices. Commer cial manufacture, beginning in 1788, increased until textile production became the premier industry of the district, as it is today. Capital and Surplus $20,000,000 THE NATIO https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis All eyes now look toward New England for cotton and woolen cloth. Here is also the home of good textile machinery for all the world. A vast international com merce centers around the industry, helped materially by the counsel and financial co-operation of The National Shawmut Bank. Technicalities of the textile trade arc every-day details in this bank. Direct representation in every city and port enables us to handle im port and export business rapidly, accurately and thoroughly. It is a service founded on com plete understanding of the needs. Correspondence is cordially invited HAWMUT _ _ - *S— of B O S T O N BANK 12th at W hite Sulphur Springs, W est Virginia. Mr. Tate has long been prominent in the affairs of the Iowa Bankers Association and his appoint ment comes as a result of his meri torious services. There are six Iowa bankers on the executive committee of the A. B. A. Will Shorten Jurats A recent bulletin of the Iowa Bankers Association mentions the fact that the jurats are to be short ened up on the state bank call state ments. The one formerly used on the state bank call sheets is consider ably longer than that used on nation al bank statements. S. W . Shaw, cashier of the Citi zens State Bank of Panora, Iowa, is indirectly responsible for the short ening of the jurats, which will save many dollars’ worth of printing for the 1300 state banks of Iowa. At. Mr. Shaw’s suggestion the matter was taken up with the state associa tion through Secretary Frank W a r ner, who carried Mr. Shaw’s idea to Superintendent W . J. Murray and thereby effected the change, which is gladly welcomed by the state banks of Iowa. Repose is as necessary in conver sation as in a picture.— Hazlitt. June, 1922 THE N ORTH W ESTERN 101 BANKER □ in HPHE name of this institu tion has always stood for all that is substantial in financial affairs and service. You will find here the finan cial strength, the organiza tion, the experience and fa cilities necessary for real service. More important still, we have the desire serve you. BLACK HAWK NATIONAL BANK G EO . B. M IL L E R , C h a ir m a n o f t h e B o a r d R . O. H U T C H I S O N , P r e s i d e n t A . E . G L E N N Y , V ic e P r e s id e n t J A M E S L O O N A N , V ic e P r e s id e n t C H A R L E S W . K N O O P , C a s h ie r E . A . S C H A E F E R , A s s is t a n t C a s h ie r L IL A M A R C H A M , A u d ito r WATERLOO, IO W A □ □ « https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 102 THE N ORTH W ESTERN BANKER June, 1922 E. E. Menneke Succeeds Brother. LIVE STOCK INSURANCE IS YOUR BEST FIELD THE P IG CROP IS W ORTH MONEY P R O TEC T YOUR CUSTO M ERS G e t our 4 in 1 S E R V I C E ! 1. Free V e te rin a ry S ervice. 3. Fre e W o rm in g . 2. Free M ed icin e . 4. Fre e V a c c in a tio n A N D P A Y F O R T H E H O G S T H A T D IE when necessary. Our policies protect your customers on their most hazardous risks. They make your loans 1 00 % safe. Place your risk with the largest and oldest hog insurance company. OUR SURPLUS AS REGARDS P O L IC Y H O L D E R S , $ 2 3 5 ,2 2 4 .4 4 Our business has increased this year 1 00 % over 1921. Are you getting your share of this? The careful banker and the careful farmer will not be without this protection. An agency in your bank will prove profitable to you. Our representative will call to- suit your convenience. Let us know when he shall see you. A M E R IC A N L I V E S T O C K IN S U R A N C E OM AHA, NEBRASKA COMPANY, N o w Is the Tim e Mr. Banker T o assist your deserving customers in restocking with she stuff and young steers. W e stand ready to help by discounting the loans you make to responsible stockmen on good live stock security. W e invite correspondence from stockmen and country bankers. The Live Stock National Bank AND Sioux City Cattle Loan Co. “Located at the Stock Yards” SIOUX CITY, IO W A W . M . HETHERINGTON, President J. C. COLLIER, Vice Pres. H. A. KOESTER, Cashier FIRST NATIONAL B A N K DUBUQUE, IOWA Capital, Surplus and Profits, Resources - Accounts oi Banks Solicited $ 475,000.00 4.000,000.00 Write Us for Terms FIRST N A T I O N A L B A N K COUNCIL BLUFFS, IOWA Capital $200,000.00 J. P. Greenshlelds, President E. A. W ickham , Vice-President G . F. Spooner, Cashier Surplus $250,000.00 Roy Maxfield, Asst. Cashier J. S. W atson , Asst. Cashier More than half a century of successful banking https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A t the annual meeting of the Jackson State Savings Bank of Maquoketa, Iowa, E. E. Menneke, of Miles, Iowa, was elected cashier to succeed his brother, F. A. Menneke, who resigned to take care of per sonal affairs. The new cashier has been part owner of the Miles Savings Bank for a number of years. He recently sold his interests in that institution and became a state bank examiner in Iowa. Other officers elected to serve on the officiary of the Jackson State Savings include: President, C. A. L ea ch ; vice president, Adam Ringle p ; assistant cashier, E. A. Barnes. Hampton Banker Married W illard C. Clinton, assistant cash ier of the Citizens National Bank of Hampton, Iowa, was married re cently to Miss Dorothy Robinson of the same city. They will make their home in Hampton. Mr. Clinton is a graduate of Cornell College at Mt. Vernon and served in France during the world war. Fine Meeting At Lake Mills A t the last meeting of the W inne bago County Bankers Association, held at Lake Mills, Iowa, the fol lowing officers were elected to head the association: President, A. M. Sheimo, Farmers State, Lake M ills; vice president, H. Cleophas, Forest City National Bank; secretary-treas urer, E. E. Sapp, Buffalo Center. N. E. Isaacs, retiring president, presided at the meeting. Frank Warner, secretary of the state asso ciation, was present and told of the work of various county vigilance committees. Mr. W arner also talked at length on “ The Taxation of Na tional Bank Stock.” Fairfield Banker Passes Away Joseph Ricksher, for years promi nent in the business and banking cir cles of Fairfield, Iowa, died recently at his home in that city following an extended illness. He was a very use ful citizen of the Fairfield commu nity and had always been a great factor in the progress of that city. Mr. Ricksher came to Iowa in 1852 and served during the Civil war in an Iowa regiment. He later entered the mercantile business at Fort M ad ison, Iowa, and went to Fairfield in 1871. Mr. Ricksher became presi dent of the Iowa State Savings Bank in 1908 and continued in that ca pacity until 1917. June, THE 1922 N ORTH W ESTERN BANKER 103 IOWA BANKERS INCLUDED IN TH E PERSO N N EL OF Burns Brothers Co. INVESTMENT BANKERS DES MOINES, IO W A Affiliated with us as Directory or Advisory Board Mem bers and assisting us in the selection of high grade In vestment Securities. J o h n T. S u d m e ie r P r e s . F a r m e r s S ta te D y e r s v ille , I o w a . Tax Free Iowa Bonds School City County Drainage and Special Assessment B ank, H . C. J o r d a n P r e s . F a r m e r s S ta te B a n k , B a ttle C re e k , Io w a . U. W . W a l t o n C a s h i e r C it y T r u s t & S a v in g s B a n k , P a to n , I o w a . E. R . G o n d e r C a s h ie r P ilo t M ound B an k , P ilo t M ou nd, Io w a . O. S. B o y d C a s h ie r F arm ers S a v in g s B a n k , R o la n d , Io w a . W . A . S o u th e r la n d V ic e P r e s id e n t H o m e H u m e sto n , Io w a . G e o r g e H . B a ile y D ir e c to r S ta te B ank B u ck ey e, B u ck ey e, Iow a . R . H . K r e h b ie l V .- P r e s . a n d D i r e c t o r D o n n e l l s o n S ta te B a n k , D o n n e lls o n , I o w a . of S a v in g s S ta te B ank, H . C. Z i c k e f o o s e D ir e c to r F arm ers S a v in g s B an k, S w ed esb u rg, Iow a . G e o r g e G. S m it h D ire c to r H a rco u rt H a rco u rt, Iow a . S a v in g s B ank, Guy J. E . B u i a n d D ir e c to r F a rm e rs A l b e r t C it y , I o w a . S a v in g s B ank, E . M ack D ir e c to r F arm ers S ta t e B a n k , S to rm L a k e , I o w a . W . L . G e is in g e r P re s . F a r m e r s S ta te S to r m L a k e , Io w a . B ank, High Grade Corporation Bonds and Stocks First Mortgages and Debenture Bonds B. B. H e rro n V .- P r e s . a n d D i r e c t o r D o n n e l l s o n S ta te B a n k , D o n n e lls o n , I o w a . We invite you to make our offices your headquarters when in Des Moines. Every courtesy will be extended to you. OFFICERS J. E. J. A. R. R . B u r n s ............................................................... P re s id e n t R . H o lla n d .............................................. V ic e P re s id e n t B . B u rn s ..........V ic e P re s id e n t an d T r e a s u r e r E . R e a d ............................................................... S e c re ta r y W . M o r r is o n ............ V .-P r e s ., M g r, B o n d D e p t. NEW LOCATION, 313 FIFTH STREET (GROUND FLOOR) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 104 THE N ORTH W ESTERN BANKER June, 1922 The Merchants National Bank C E D A R RAPIDS, IO W A Statement of Condition, M ay 5, 1 9 2 2 RESOURCES L IA B IL IT IE S L oan s and D iscou n ts......................................... $ 6,163,871.40 O verdrafts ..................-........................................... United S tates B o n d s.......................................... 144.92 476,200.00 O ther Bonds ............................................................ R eal E sta te (F or B ank P r e m is e s )............. 335,244.17 190,000.00 F urniture and F ixtu re s....................................... Cash on H an d, Due from B an ks U. S. T re asu re r....... ................. Capital Stock ........................................................$ 780,629.84 Surplus and U ndivided P rofits....................... R eserved for Circulation 300,000.00 T a x e s............................................ 25,000.00 ............................................................... 300,000.00 .................................................................... 9,141,063.76 N one D ep osits and 3,381,233.11 $10,546,693.60 $10,546,693.60 A Live Commercial Institution offering superior equip ment and facilities for the handling of Bank Accounts J O H N T. H A M I L T O N , Chairm an J. M . D IN W ID D IE , P resident H. N. B O Y S O N , V ice-P resid en t J A M E S E . H A M IL T O N , V ice-P resid en t R O Y C. F O L S O M , V ice-P resid en t P. C. F R IC K , V ice-P resid en t M A R K J. M Y E R S , V ice-P res. and C ashier ROBERT F R E D A . G R O E L T Z , A s s t. Cashier P A L M E R , V ice-P resid en t E . E . P IN N E Y , V ice-P resid en t S. E . C O Q U IL L E T T E , A sst. C ashier E D W I N H . F U R R O W , V ice-P resid en t E . B. Z B A N E K , A sst. C ashier R eaders w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE Travel by Airplane The Live Stock National Bank of Sioux City arranged for Sioux City bankers attending- the group meeting at Winner, South Dakota, to go by airplane. The plane which was used is a fine 600-horsepower Ensaldo, an Italian plane of the type which will be used on the commer cial air route from Sioux City to Cedar Rapids and Chicago, which is shortly to be established. The pilot, mechanician and passengers are all enclosed and every conceivable com fort and convenience, including a card table, is provided. The bankers who made the trip are: C. D. Haskell, vice president of the Live Stock National Bank; Craig Van Dyke, vice president of the Sioux National Bank; John M itch ell, vice president of the First N a tional Bank, and Mr. Erickson, a s sistant cashier of the T oy National Bank. The fifth passenger was Henry Hoskins, a director of the Chamber of Commerce and chair man of its publicity committee. “ The interesting phase of this news,” explains S. G. Eaton, assist ant cashier of the Live Stock N a tional Bank, “ is the actual saving of money and time and the increased com fort of travel in this manner as against a tedious day-long journey by train without Pullman or din ing car service. These bankers made the trip in an hour and a half, with every com fort of travel. W e anticipate that it will be only a few months before the officers of the Live Stock National Bank will cus tomarily make trips of this charac ter by airplane. W e contemplate the purchase of an aerial mileage book to be used for that purpose.” N ORTH W ESTERN BANKER 105 W E ARE READY TO TAKE CARE OF YOUR FARM L O A N S The Central Iowa Joint Stock Land Bank of Des Moines is prepared to take your farm loans on terms that will be mutually agreeable and profitable. Bankers desirous of rendering their farmer patrons the best possible assistance in negotiating their farm loans will find it to their advantage to make a connection with this bank. The men behind this institution are well qualified through many years of experience in the farm mortgage business to handle your loans in a most careful and satisfactory manner. W rite us now for the representation in your local community. OFFICERS AND DIRECTORS G E O R G E G. H U N T E R , P r e s i d e n t E D W IN B. H U N T E R , S e c ’y -T r e a s . S ID N E Y M A N D E L B A U M , V ic e P re s . Vice Pres. Younker Bros., Inc. Des Moines, Iowa. C. L . V O S S Cash. Bank of Denison Denison, Iowa R O B E R T M. G A L B R A I T H Pres. Pease Hay Commission Co. Des Moines, Iowa. C. S. H U N T E R , V i c e P r e s . Mgr. Hawkeye & Des Moines Dept, Firem<'n’s Fund Insurance Co. Des Moines, Iowa. M A N N IN G M A R T IN Pres. Manning Martin Co. Des Moines, Iowa H. B. A L L P R E E Vice Pres. First National Bank Newton, Iowa W . L. R O B IN S O N Cash. Citizens National Bank Hampton. Iowa M. U. S H E U E R M A N Secy. Sheuerman Bros., Inc. Des Moines, Iowa B . T. H O U G H State Agent Hartford Fire Ins. Co. Des Moines, Iowa The Central Iowa Joint Stock Land Bank 306-307 Crocker Bldg. DES MOINES, IOWA J. W . Hanna Dies J. W . Hanna, a life long resident of Benton County, Iowa, and well known as a banker, politician and farmer in that section of the state, died recently at his home in Vinton follow ing a sudden attack of pto maine poisoning. Mr. Hanna was a graduate of C or nell College, Mt. Vernon, and en tered the dairy business early in life. He was one of the organizers of and served as president of the Farmers Savings Bank of Garrison, Iowa, since its inception. He was repre sentative of Benton county in the Iowa legislature and had recently announced his candidacy for senator from the Benton-Tama district. Sooner or later the world comes round to see the truth and do the right.— Hillard. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Dubuque National Bank DUBUQUE, IO W A Deposits O v er $2,000,(XX) Keep us in m in d -- The Citizens National Bank SPENCER, IOWA Capital $ 1 0 0 ,0 0 0 . 0 0 Accounts of Banks and Individuals Solicited FRANKLIN FL0 E T E , Pres. J . H. M cCO RD , Vice-Pres. P. R. GRAH A M , Cashier When you think Spencer, think Citizens National 106 THE N ORTH W ESTERN BANKER June, 1922 Representation After you have formed a connection with The W aterloo Bank & Trust Co., you may look upon us as you would a special representative. W e supply you with individual, inter ested and painstaking service. Our special, individual service is per formed as a matter of course, and we always welcome requests for attention to out of the ordinary matters. W ith every department functioning effi ciently, and every courtesy and personal favor extended, you are offered an en viable W aterloo connection. OFFICERS B E N J. H O W R E Y ......... .................. President A. G. A G N E W ................. ......Vice President H. M. H O W R E Y ............ ................. T re a s u r e r A. K. S M I T H .......................................... Cashier C. R. M I L L E R ............................Asst. Cashier G. W . B E R G E R .......................... Asst. Cashier L. J. D U K E .................Mgr. Insurance Dept. W I N I F R E D G A R V I N ........Mgr. Sav. Dept. Total Resources Over $ 2 ,5 0 0 ,0 0 0 .0 0 The Waterloo Bank & Trust Company W ATERLOO, I O W A R ea d ers will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE Iowa Bank Robberies Decreasing Bank robberies in Iowa since June 1, 1921, have numbered only 24 c o m pared with 56 in the twelve months preceding that date, and a share of the credit for the reduction is claimed by the Iowa Bankers’ A sso ciation for the vigilance committees it has organized in every banking center throughout the state. Extention of the vigilance organization is proceeding, and by next fall it is e x pected that it will include a mem bership of more than 6,000 men. Each member of the vigilance committee is appointed a deputy sheriff and is subject to the call of the county sheriff in any emergency. Arms are furnished by the state a s sociation at a low cost from sup plies obtained from the United States government. Rifles, carbines, sawed-off shotguns and heavy re volvers are used. The vigilance organization was formed a little over a year ago. It is said to be unique, but is now b e ing copied in a number of other states. Figures showing the achieve ments of the Iowa committee are in process of compilation by the bank ers’ association. They are believed by the committee to establish a clear connection between the work of the committees and the decline in rob beries. More attempts have been unsuccessful in the last year than ever before. Becomes State Examiner V . L. Bartling, assistant cashier of the W aterloo Savings Bank, has joined the Iowa state banking de partment as examiner. Mr. Bart ling spent ten years with the W ater loo Savings Bank, and has a wide circle of friends among Iowa bank ers. N O RTH W ESTERN BANKER 107 The Banker The Trust Officer The Executor The Investor $100 $250 $500 and up All have learned of the stability of our First Mortgage Real Estate Bonds, secured by big business properties in Omaha, yield ing 7% per annum. The mortgages back of these bonds cover new business build ings of permanent earning power, built for reliable owners by Home Builders’ (In c.), whose large organization builds big buildings and advances money to help finance them. Send for free booklet giving full details of Home Builders’ Securities. Investors in 22 states have held these securities for many years. American Security Company Brokers 18th and Dodge Omaha, Nebraska LONDON JOINT CITY AND MIDLAND BANK LIMITED C H A IR M A N : The Right Hon. R. McKENNA J O IN T M A N A G IN G D IR E C T O R S : F. HYDE E. W. WOOLLEY S u b s c rib e d C a p ita l P a id -u p C a p ita l R e s e rv e F u n d D e p o sits HEAD O F F IC E : OVER (D ec. 5, 1 ,6 0 0 - - £ 3 8 ,1 1 7,1 0 3 1 0 , 8 6 0 ,8 5 2 1 0 , 8 6 0 ,8 5 2 31s t , 1921) - - 3 7 5 ,1 1 7 ,0 9 2 TH READNEEDLE O F F IC E S IN STR EET, ENGLAND AND LON DO N, E C. 2 W ALES OVERSEAS BRANCH : 65 & 66, OLD BROAD STREET, LONDON, E.C. 2 Atlantic O ffices : “ Aquitania ” “ Berengaria ” “ Mauretania ” AFFILIATED BANKS: Bank Watches Customers’ Credit L. W . H olley & Sons Company, Des Moines, stationers and printers, have reported the unusually fine service rendered the company by a bank in Sheyenne, North Dakota, in connection with a sight draft. Instead of paying slight attention to the draft, as is customary with many institutions, this bank real ized the advantage of keeping its customers’ credit in good standing. The bank acknowledged the draft and w ro te : “ On presentation the writer was told that due to a receipt of new stock shipments immediate payment could not be made conveniently. W e pointed out the fact that the account originated over a year ago and consisted of a series of small amounts, for goods ordinarily sold on a strictly cash basis; in view of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BELFAST BANKING CO. LTD. THE CLYDESDALE BANK LTD. OVER 110 OFFICES IN IRELAND OVER 160 OFFICES IN SCOTLAND 108 THE N ORTH W ESTERN BANKER W H E R E BUSINESS CONCENTRATES St. L ou is, the gatew ay and clearing house of a great fertile em pire that is particularly her own, is entering into a new era of better business. Out-of-tow n banks w ill need now, m ore than ever, accurate and rapid banking service in such a trade center. T h e N ation al B ank of Com m erce in St. Louis, w ith sixty-five ye ars’ exp erien ce; and capital, surplus and profits of over $15,000,000, can best serve your needs for St. Louis banking connection. C&NATIONAL BANK o f COMMERCE m SAINT LOUIS J O H N G. L O N S D A L E , President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 which you were entitled to special consideration in view of the age of the account. W e agreed to hold the item until May 10 on condition that it be paid on or before that date, or at least materially reduced by a par tial payment to be made to us, to justify our action. Calendar nota tion is being made of this, and we trust our action is satisfactory. First National Bank. J. O. Severtson, cashier.” Fiftieth Anniversary Fifty years ago the foundation of the Valley National Bank of Des Moines was laid in the organization of the Valley Bank, and while indi viduals have come and gone, so firm was the foundation, that through the financial storms which have occurred periodically during that period of fifty years, the Valley National Bank has come, and continues to be recog nized for its conservative and sound banking. Any financial institution which for fifty years has stood the test of time and continued to show a conserva tive and constant growth, is indeed to be congratulated. The bank was organized in 1872 as the Valley Savings Bank by J. J. Town, who came to Des Moines from Erie, Pennsylvania, the year previous, and G. M. Hippee. The original bank had $50,000 capital, and opened for business in a onestory brick building on the north west corner of Third and Court avenue. In 1875 Mr. Hippee sold his inter est to Mr. Tow n and retired. Mr. Town, with the financial assistance of Orange Noble of Erie, Pennsyl vania, and T. H. Delamater of Meadville, Pennsylvania, organized the Valley Bank and purchased the cor ner of Fourth and Court avenue, where the Randolph Hotel now stands, and erected a three-story building. In 1883 the bank secured a nation al charter and changed its name to the Valley National Bank, having at that time a capital of $150,000 and surplus of $20,000. One year pre vious to this time Mr. Barrett joined the bank’s staff as bookkeeper. Mr. Tow n was the first president, with W . D. Eucas, of Ames, cashier. Directors included Jacob Stark, Samuel B. Tuttle, J. A. Ankeny, W . W . Lyons, W . D. Lucas, Charles W eitz, E. W . Stanton, F. Riseley and J. J. Town. In 1893 R. A. Crawford, who was then in the banking business in A l toona, saw the greater possibilities of entering the banking business in Des Moines, left Altoona and came June, THE 1922 N ORTH W ESTERN BANKER Your Clinton, Eastern Iowa and W estern Illinois Items CLI N T O N , I O W A Remember it this way “ Peoples Trust’’ Clinton R ea d ers w ill c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 109 110 THE o♦ ♦* ♦>♦♦♦♦ ♦♦ N ORTH W ESTERN BANKER ♦♦♦>♦>♦%. ♦ .♦♦♦V» V#V#*♦♦♦V#V» V#V♦W ♦♦♦♦♦♦*V♦♦♦♦V#♦♦♦♦♦♦«V ♦♦♦♦• I REPRESENTATIVE L A W Y E R S ♦> ♦V ♦'$ ♦> In s e n d in g b u sin e ss to la w y e r s c o n su lt th e f o llo w i n g lis t . T h e se firm s can h a n d le y o u r b u sin e ss p r o m p tly an d e fficien tly M ONROE & LEM AN N Carondelet Bldg., New Orleans, La. Attorneys for Whitney-Central National Bank, Whitney-Central Trust & Sayings Bank, Fed eral International Banking Company W IL L IA M L. S Y M O N S A t t o r n e y a n d C o u n s e lo r a t L a w 700 T e n t h S t r e e t , W a s h i n g t o n , D . C. P a te n t, T r a d e -m a r k a n d C o r p o r a t io n C au ses M A R T IN & W e b s te r City General SWAN, A tla n tic ALEXANDER Iowa MESSER, Iowa C A L V IN W a u ko n & SWAN Iowa & OLSEN S. S T IL W E L L Iowa 1. Rockwell E. DOUGHERTY C ity General Practice COCHRAN & Iowa W OLFE Logan Iowa General Practice General Practice O S M E R E. S M I T H Citizens National Bank Bldg. Cheyenne, W y o m ing General practice in all State and Federal courts. A D V E R T I S E in the Northwestern Banker ST . P A U L G lo b e B ld g . Iowa General Practice Practice C L O V IS CLEARMAN City General Practice M IN N E A P O L IS W ilm a c B ld g . BISHOP, BRISSMAN & CO. Certified Public Accountants M embers American Institute of Accountants F a r g o N a tio n a l B a n k B ld g . F A R G O , N. Com m ercial p r in t e r s - lit h o g r a p h er s lo o s e - s t e e l d ie E m bossers LEAF DEVICES The officers of this bank are always pleased to meet any visiting Bankers who may be in Sioux City. Send us your collections. W rite us when you need farm loans, or Foreign Ex change. In fact, we do banking business of every description. C. L . R O E ....................................... P r e s i d e n t A . W . S M I T H ....................V i c e P r e s i d e n t T . W . P H I L L I P S ............ V i c e P r e s i d e n t THE M ID -W E S T A L F R E D P IZ E Y V ic e P r e s id e n t N. H . N E L S O N ...................................C a s h i e r A . M. H A R T Y ............ A s s i s t a n t C a s h ie r STATE BANK June, 1922 to Des Moines, as cashier of the V al ley National Bank. Upon the death of Captain N. W . Johnson, who fo l lowed Mr. Tow n as president, Mr. Crawford was elected president of the bank in January, 1901, and has remained its active head ever since. A t the time Mr. Crawford was elected president of the bank, W . E. Barrett was also made cashier. In 1908 C. T. Cole, Jr., joined the bank as vice president. That the bank has been ably of ficered and well managed is indicated by an examination of the figures which shows that the bank’s surplus grew from $60,000 in 1893 to $160,000 in 1907, and to $400,000 in 1922. During that same period the capital stock was increased from $200,000 to $300,000 by stock dividends. Since the organization as a national bank in addition to the surplus accumu lated its regular dividend has been paid without a single intermission. A beautiful ten-story office building, which was erected a few years ago, and in which the bank has its own fine quarters, is a proof of the prog ress and growth of this excellent in stitution. Adds Two New Directors At the annual stockholders’ m eet ing of the Northern Trust and Sav ings Bank of Des Moines, two new directors were added to the board, M. V. Alexander, president of A lex ander & Sandberg company, and C. H. Rosenbaum, agency manager of the Bankers Life company. The following members of the board were re-elected: F. W . Swanson, D. S. Kruidenier, John C. W ooden, Edward R. Han sen, William Koch, R. B. M cGregor, E. Chase W est, Frank G. Callander, Harry Hansen. Harry Hansen was re-elected president. The bank has made a rapid growth, indicating the return of activity in the automobile indus try in the west end of the business section. Deposits have reached the $300,000 mark. Enters Farm Loan Department James E. Easton has severed his connections with the Noah W illiams Real Estate Company to become identified with the farm loan depart ment of the Anderson, Lipton & Co. Bank of Ida Grove, Iowa. Mr. Easton was connected with the Baxter, Reed Co. Bank at Ida Grove, Iowa, for twenty years prior to entering the Noah W illiams office. 408 Pearl S treet, Sioux Ci ty, Iowa BANK A C CO U N TS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INVITED “ W h e re Savings G r o w " No man can fall into contempt but those who deserve it.— Johnson. June, THE 1922 N ORTH W ESTERN BANKER 111 FIRST N ATIO N AL BANK S IO U X C IT Y , I O W A EN TIM E N T in business is an unrecorded item which belongs in the asset column. It is an influence in cementing busi ness relations and it is a promoter of good will and faith. W e try to make our ambitions known in all transactions entrusted to our handling. OFFICERS J O H N J. L A R G E , P r e s id e n t F . A . M c C O R N A C K , V ic e - P r e s i d e n t H . A . G O O C H , V ic e - P r e s i d e n t L . H . H E N R Y , V ic e - P r e s i d e n t J. L . M I T C H E L L , V i c e - P r e s i d e n t O . D . P E T T I T , C a s h ie r F R I T Z F R I T Z S O N , A s s is ta n t F R A N K R . K I R K , A s s is ta n t J O H N P . H A I N E R , A s s is ta n t L . M . A S H L E Y , A s s is ta n t C a s h ie r C a s h ie r C a s h ie r C a s h ie r R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 112 THE Merchants National Bank BURLINGTON, IOWA Capital, Surplus and Profits $204,114.51 Deposits....$l,804,478.51 N O RTH W ESTERN BANKER Protection Publicity Econom y P r o t e c t i o n — Every bank and each of its depositors using Super-Safety Insured Checks is positively protected by $ 1 , 0 0 0 . 0 0 o f insurance against loss through fraudulent alteration of checks. P u b l i c i t y — Advertising aids w hich w e furnish banks using Super-Safety Insured Checks enable them to identify themselves with our powerful national advertising cam paign constantly appearing iu leading publi cations, thus reaping their local share of its tremendous influence. E c o n o m y — O r d in a ry , u n in su r e d , unprotected and un advertised checks are ju st “ g e n e r a l e x p en se." Super-Safety Insured Checks con vert this item into a p o w e r fu l p u b licity force. O n an average th e y cost n o m ore, and often less, than the kind you now charge t o “ general expense.’ ’ O r d e r Super Safety Insured C h e c k s this HARTFORD D IR E C T O R S Alex M oir J. L. Waite J. L. Edwards against loss through fraudulent or felon ious a l t e r a t i o n s . 0-33 The Bankers Supply Company The Largest Manufacturers o f Bank Checks in the World NEW YO RK C H IC A G O DENVER ATLANTA D E S M O IN E S S A N F R A N C IS C O We Invite Your Banking Business . J Ä | SERVICE PUBLICATIONS FOR BANKERS B A N K E R S D IR E C T O R Y BANKERS M O N TH LY BANKERS ROSTER B A N K E R S E Q U IP M E N T S E R V IC E G U ID E B A N K I N G E T H IC S K E Y TO A B A SYSTEM BUREAU OF CANADIAN INFORMATION The Canadian P acific R a ilw a y, throug-h its Bureau o f Canadian In form a tion , w ill furn ish you w ith the latest relia b le in form a tion on every phase o f in du strial and a gricu ltu ra l developm ent in Canada. In the R e f eren ce L ib ra ries m aintained at C hi cago, New Y ork and M ontreal, is com plete data on natural resources, clim ate, labor, tran sportation , b u si ness open in gs, etc., in Canada. A d dition al data is con sta n tly b ein g added. No ch a rge or ob lig a tion attaches to this service. Business org a n iza tions are in vited to m ake use o f it. TH E CANADIAN PACIFIC RAILWAY DEPARTM ENT OF COLONIZATION and D EVELO PM ENT C H IC A G O 140 Sou th C la rk St. M O N T R E A L , P. Q. 335 W in d s o r S tation NEW YORK M ad iso n A v e . a t 4 4 th St. I n f o r m a ti o n o n r eq u e s t. R a n d M c N a l l y & C o m p a n y Dept. F29 536 S. Clark Street, Chicago Succeeds W . A. Law Livingston E. Jones has been elected president of the First Na tional Bank of Philadelphia, succeed ing W illiam A. Law on Just 1, 1922, when Mr. Law retires to become president of the Penn Mutual Life Insurance Company. Mr. Jones has been for years an active director of the First National Bank. COLTS ARMY Who Is Your Broker? REVOLVER Calibre .38, in fine order, m blued finish, double action.J)" swing-out cylinder, wood grips, l a n y a r d swivel. .Weight 32 ozs., barrel 6 inches, full length 1 1% inches. Special price $13.50. Black holster 45 cents. Lanyard with snap 10 cents. Army goods circular 10 cents. 501 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis B A N K R A D IO A C T IV IT Y (Continued from page 44.) given to the public until the morning newspapers are published. You can readily see that we are beating the newspapers from twelve to fifteen hours with this information. “ The future of the radio, in so far as banks and investment houses are concerned, is necessarily problematical in view of the present conference now being held in Washington relative to the control of radio by United States government and the limitation thereof for certain specific uses. W e are con fident that the market service would naturally fall under public service, yet we do not know just how strictly a regulation may be construed and it is possible that the number of banks broadcasting will be limited. W e be lieve, however, inasmuch as we are the first in the Northwest field, we would no doubt be granted the privi lege of broadcasting if anyone is. In view of the fact that the United States government and the various state gov ernments have so fully recognized the value of market news to the banker and the farmer that they are sending out market information through every possible channel, we are inclined to feel entirely comfortable as to our future service. Therefore we are making plans to go ahead in improv ing and broadcasting our service and have already communicated by letter with all the banks within the range of our station recommending that they install receiving sets and to issue and post bulletins containing the informa tion which we send out. “ While radio receiving stations may be installed at an expense ranging from $14.70 up, we are of the opinion that a receiving set that costs under $150 or $200 would not be adequate for the receiving of clear and accurate information.” for Banks J. L. E D W A R D S ____________ President time. A L E X M O I R ______________________Vice President F. L. H O U K E ______________________Vice President JAM ES M O IR ______________________Vice President G. S. T R A C Y __________________Vice President C. L. F U L T O N __________________Vice President E. W . W IC H H A R T _____________Cashier C. A . D A N IE L S ____Assistant Cashier A. A . W IL L E M ------Assistant Cashier I n s u r e d in t h e Janies M oir G. S. Tracy W . C. Tubbs June, 1922 F R A N C IS BROADW AY B A N N E R IW A N S O N S N EW YORK C IT Y DE S M O I N E S j une, THE 1922 N ORTH W ESTERN BANKE R T h e Transit Departm ent of this bank is completely equipped to han dle promptly all cash items and collections. Because of our direct connections and our membership in the Federal Reserve Sys tem, we can save time and interest for our correspondents. Concentrate with us — as your correspond ent—all your business in Federal Reserve District Number Seven. E. W . M IL L E R , F . C. P L A T T , V ic e P res ident H . W . W E N T E . C ash ier P resident S . C . K I M M , Asst. Cashier R . L . PEIMIME, Asst. C ashier DIRECTORS DIRECTORS E. W A R R EN BROW N P res id en t W a te rlo o L u m ber Com pany W . P. H O X IE V ic o P res id en t W a te rlo o F r u it & Com m ission Co. A. J. E D W A R D S E dw ards, Longley, R ansier & H a rris , A tto rn e ys L. Sec’ y & V ic e W . M IL L E R P res ident & D. M IL L E R Tre as . C rystal Fue l Co. Ice H. B. P L U M B P res id en t Associated M a n u fa c tu re rs Co. JAM ES M . G RAHA M P res id en t James B lack D ry Goods Co. F R A N K L IN C. P L A T T P res ident W a te rlo o S ad dlery C om pany W O R T H H IL L M A N Vice P resident S m ith , L ic h ty & H illm a n Co. J. S. T U T H IL L Reed, T u t h ill & Reed, A ttorneys H. GEORGE W . H U N TLE Y P res ident C u tle r H ard w are Co. W . W ENTE C ashier COMMERCIAL NATIONAL BANK WATERLO O, IOWA CAPITAL AND SURPLUS ONE, HALF MILLION DOLLARS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 114 THE N O RTH W ESTERN BANKER TO THE PEOPLE OF W ATERLO O" Strength that Defies T im e — firmly rooted through Service U Wi T it d W e in v ite nevu business on our record a n d o u r p resen t ability to s e r v e . S the mighty oak, standing su perbly in the midst of the forest, with its roots sunken deep into the bosom of M other Earth, defies the ravages of time and the attacks of the elements, the First National Bank, firmly rooted through service in the hearts of the men and women of Waterloo, has for more than half a century weathered every business crisis of war times and peace, and stands today a vigorous, growing in stitution, performing every fundtion of a modern bank. T h e First National Bank Waterloo C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A . M A R S H , President A . M . P L A C E , Vice-President W I L L A . L A N E , Cashier June, 1922 June, 1922 THE IO W A B A N K T A X E S (Continued from page 27.) be accomplished and evidenced by tax receipts. The continued acceptance of an immunity sometimes gives the im pression of its being a “ right” and those sophisticated bankers who had enjoyed this privilege under the old law were somewhat taken aback at the daring in denying them the same knot hole or joker in the new. The tax question is at best a diffi cult one, but it is worthy of careful study by the bankers of our state, and I commend it as a field for real mental activity. I am sure that the very large majority of our patriotic and far sighted bankers want nothing more than justice— that they feel capable and are willing to pay their just share of the burden, or rather the obliga tion. I am equally certain that our business or profession, like all others, harbors a few who selfishly seek im munity and special favor or exemp tion. If we desire to occupy a state room on the “ ship of state” it is high time we were paying for a first class ticket, instead of trying to get by on the steerage rate or sneaking a ride. A situation recently occurred which il lustrates the attitude of some bankers. A western bank had this slogan printed under its title on its checks: “ The bank that treats you right.” Such a check deposited by one of our cus tomers was returned unpaid with this notation: “ This bank not paying checks now.” It seems to me that as bankers we are tackling the question from the wrong angle. Instead of maintaining the custom of appearing by a com mittee before a legislative committee charged with the desire to put some thing over, get immunity or in a pre ferred class, we should recognize our own citizenship and make our ap proach for justice and right, which in the end must obtain. What is wrong and how can the wrong be righted? Taxes are high but the tax law is not the cause. Per haps we had better try and detect the cause, assist in finding a remedy. The rate in this city in 1905 was 55.7 mills, in 1921, 165.3 mills, and I assume this is fairly representative of other cities. I am cognizant of the fact that officers of the law, assessors, sworn to execute the law, openly violate the law them selves. It is absolutely impossible to write law to meet a condition where it is not enforced as written. As near as I can learn, in this locality asses sors “ fix” an assessed valuation at 60 per cent of the actual value. The law fixes it at 100 per cent. The weak ness is not in the written law but the administration or maladministration https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O RTH W ESTERN 115 BANKER Success — is the reward of constant, untiring effort. This bank, through the endeav or of every officer in it, is growing in strength and stability. Its customer list is increasing by virtue of the un usual service rendered. Your business will find a hearty wel come, and the transactions entrusted to us will be handled with expediency and thoroughness. Your patronage is sought and appre ciated. OFFICERS C. H . M A R T I N . P r e s i d e n t C A P IT A L F R A N K P. F L Y N N V ic e P r e s id e n t R O S C O E C. M O R R O W A s s i s t a n t C a s h ie r E . A . S L 1 N IN G E R C a s h ie r E. R, M IL L A R D A s s i s t a n t C a s h ie r CARL W . M ESM ER A s s is t a n t C a s h ie r E U G E N E H, T A Y L O R A s s is t a n t C a s h ie r (P a id i n ) .................................. C A P IT A L (E a rn ed ) .................................. SU R PLU S A M ) P R O F IT S D E P O S IT S $ 50, 000.00 50 ,000.00 $ 100,000.00 (E a rn ed ) ........................ 325, 000.00 ...................................................... ........................ 4 ,000 , 000.00 Peoples Savings Bank DES M OINES THE 116 N O RTH W ESTERN Ef service .your patrons will appreciate* SECURITY’S SERVICE is n ow available in LOS A N Q E L E S HOLLYW OOD LONQ BEACH PASADENA A service which visitors and newcomers to California appreciate has been provided by this Bank through its Department o f Research and Service. Accurate and authentic information relative to any line of business in Southern California is furnished free upon request. Persons coming to California to engage in business find this invaluable. QLENDALE SA N PEDRO H U N T IN Q T O N BEACH If you direct the attention of your patrons who come W est to this service, you are assured that they will receive our careful attention. Your customers will appreciate the courtesy of a letter of introduction to us. O E C lIR IT Y S M ll ^ & SA V I NG S B A N K C O M M E R C IA L Capital & Surplus - $10.000,000 Resources Exceed - $150,000,000 BANKER June, 1922 of it. Then why not assail the weak spot, stand up to the law and insist that all property stand likewise. If defects then develop we will know where and how to remedy them. Un til and unless officers of the law re spect the law and unless we as citi zens, seeking a high regard of our fel low citizens, display the courage of the support and enforcement of all lazv, any effort of any legislative as semblage is futile and the protection of law becomes a phrase, and we are subservient to the desires of officers, of men. By reason of changed conditions brought about by the securities issued to cover the cost of war, the issuance of an increasingly large volume of tax exempt securities by municipalities or the Federal and Joint Stock land banks, undoubtedly some changes should be effected. The taxation of any credit is double taxation, and I have always inclined to the belief that the borrower pays the tax as the “ con sumer pays the freight.” The assess ment and collection of an equitable tax on intangible or incorporeal prop erty has always been and probably al ways will be very difficult and unsatis factory of administration. It is pos sible the time is approaching when our system of the general property tax and tax on intangible property should be rebuilt. It may be that a single tax on corporeal property fortified by an income tax is the remedy. In any event, the subject and problem is worthy of most careful study and the intelligent judgment of the strong and thoughtful and patriotic bankers of our state. And, I am confident that the time will come when bankers, busi nessmen, men from the trades and fields will associate their experience with the theories of the student and evolve a system of simplicity, eco nomy, efficiency and equity in curbing public expenditure and extravagance, and in assembling the revenue to pay the bills necessary in our joint enterprize as citizens. W e ought as such citizens to re frain from tearing down a structure of law unless we can construct a bet ter for its place. And we should ap proach our law-makers divested of every selfish motive, ever bearing in mind that the most valuable asset we may accumulate for our estate and our memory, for our children and theirs, is not written with a $ sign but is in corporated in sections and chapters of law guaranteeing to them equality and justice in their pursuit of happiness. Look forward with courage or you will look back with tears.— Spanish Proverb. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, THE 1922 N ORTH W ESTERN 117 BANKER Six Big Reasons for W elfare Loan Success HE Welfare Loan Societies, operated by the Hawkins Mortgage Company, have become important factors in the small loan business of the United States— T W elfare Loan Societies and Companies in Oper ation at the Present Time IN D IA N A W E L F A R E L O A N S O C IE T Y OF ANDERSON W E L F A R E L O A N S O C IE T Y OF E LK H A R T W E L F A R E L O A N S O C IE T Y OF FORT W AYN E W E L F A R E L O A N S O C IE T Y O F IN D IA N A P O L IS W E L F A R E L O A N S O C IE T Y OF KOKOM O W E L F A R E L O A N S O C IE T Y OF LA FA Y E TTE W E L F A R E L O A N S O C IE T Y OF LOGANSPORT W E L F A R E L O A N S O C IE T Y O F M A R IO N W E L F A R E L O A N S O C IE T Y O F M IC H IG A N C IT Y W E L F A R E L O A N S O C IE T Y O F M U N C IE W E L F A R E L O A N S O C IE T Y O F R IC H M O N D W E L F A R E L O A N S O C IE T Y OF' SO U T H B E N D W E L F A R E L O A N S O C IE T Y OF T E R R E H AU TE W E L F A R E L O A N S O C IE T Y O F V IN C E N N E S O H IO T H E W E L F A R E L O A N CO. O F C IN C IN N A T I T H E W E L F A R E L O A N CO. O F COLUM BUS T H E W E L F A R E L O A N C O. OF DAYTON T H E W E L F A R E L O A N C O. O F H A M IL T O N IL L IN O IS W E L F A R E L O A N S O C IE T Y O F C E N T R A L IA F L O R ID A W E L F A R E L O A N S O C IE T Y O F M IA M I P E N N S Y L V A N IA W E L F A R E L O A N S O C IE T Y O F LANCASTER ■They deal only in money. Loan societies are not per mitted to borrow money on demand or from banks, there fore they have no money obligations to meet which makes the business safe and sound at all times. Every institution is under state supervision, and is subject to state regulations. Each society is operated under the Hawkins System, which assures economical management, frequent audits and prompt payment of dividends. The House o f Hawkins which assures the safety of every investment, has a record of nearly 100 years of successful financial opera tion. The Societies loan money on monthly interest pay ments and have no dull season, as there are more appli cations for loans than are granted. The character and standing of borrower is thoroughly investigated. Every dollar invested is guaranteed by cash on hand, well secured mortgages, bonds, notes and other valuable collateral. (Send for our latest catalog on W elfare Loan Societies) HAWKINS MORTGAGE CO. PORTLAND INDIANA R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis minimum Because 118 T HE A few N O RT HWES T ER N BANKER of the m any beautiful scenes at Storm June, 1922 Lake. Storm Lake, F avored by Indians TOYears Ago, Is Iowa’s “ Beauty Spot” By Louis W. Mittendorfj Cashier Commercial Trust and Savings Bank, Storm Lake, Iowa U T seventy years ago the Indians claimed Iowa’s fertile prairies as their own-—they were the Lords of all the Lakes— and it cannot be wondered at that they had selected what they called “ Stormy Lake” as their favorite place for pow-wows and tribal meetings. Here it was where the Indian se cured his game— wild ducks and geese and all manner of water fowl, together with abundant fishing, which made it doubly attractive for the tribes. It is admitted that agriculturally Iowa stands peerless among the sister hood of states. The men and women of Iowa have made this state rank first among all the peoples of the earth in all that goes to make virile man hood and womanhood, beauty of form and beauty of character and the devel opment of high purposes in life ; they made Iowa stand high among the manhood and womanhood of the world. B As time went on, with the building of homes and the desire of those who came to improve their community, came the knowledge of what wonder ful opportunities there were for recre ation and of the real joy of living in a country endowed with such wonder ful specimens of nature’s handiwork. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Now hundreds upon hundreds of tourists are hearing of the beauty spot, and while this is not a “ summer resort,” the beauty of landscape via the wonderful lake causes tourists to go many, many miles out of their way to make Storm Lake one of their stop ping places, en route to various sum mer resorts in this and adjoining states. Nothing is lacking— rest, recrea tion, sports and pleasure, all abound and are here for the taking of them. Delineating the various spots of in terest and beauty, we come to Sunset Park, which is located at the west of Lake Shore Drive, where is also the children’s playground. From t h i s point a boat line runs across the lake to what is known as the Casino, an amusement place. Chautauqua Park is known as the East Park, in which is located the Chautauqua Pavilion, where for many years Chautauquas have been held and enjoyed by thousands of people. The city of Storm Lake has set aside a part of East Park, which is now known as Tourists Park. Tour ists are invited and urged to stop over and camp on the lake front, where they may enjoy the lake and the beau ty of the trees, the shrubbery and beautiful flower beds. Adjoining the east end of the lake will be found the Storm Lake Coun try Club, where you will find one of the finest and best kept golf courses and tennis courts to be found any where in the state. Iowa Banker Dies In California J. E. Blenkiron, Sr., former Sioux City banker and real estate man, died recently in Los Angeles, Calif. Mr. Blenkiron was at one time asso ciated with the Blenkiron Bros. Grain Company of Sioux City, Iowa, and a director in the Security Na tional Bank of that city. F. P. Huff Is 111 F. P. Huff, cashier of the First National Bank of Rockwell City, and president of the Calhoun County Bankers’ Association, is ill at the Methodist Hospital, Des Moines. The Calhoun County Association at the last meeting passed resolutions of condolence, and sent him some fine flowers. Hay— My father’s pen is quite pro lific. Seed— Author or artist? Hay—-Neither. H og raiser. — Sun Dodger. June, T HE 1922 N ORTH WES T ERN 119 BANKE R TP - The New Home of The “ Old Iowa” Within a short time, you will he welcomed in a home representing the last word in mod ern hanking efficiency. The new building reflects the strength of Iowa’ s largest financial institution, and our pur pose to render hanking service that is unique in its completeness and personal interest. I o w a Nm i o n a l Ba n k D es M oines Savings Bank Iowa’s Lar£est Bank - O A* https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and Trust Company - Sixth and Walnut Des Moines WE 120 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE N ORTH W ESTERN BANKER June, 1922 June, THE 1922 N ORTH W ESTERN BANKER ÜÜÜ Safety Deposit Vaults Convenient and beautiful marble stairs lead down to the Safety Deposit Vaults, in our opinion the most complete and thorough ly protected equipment of its kind in all Iowa. Space has been allotted for 8000 safety deposit boxes in the main vault, which has six-foot walls of reinforced concrete and modern circular steel door weighing twenty-one tons. Storage is also provided for jewelry, silverware, heirlooms and bulky D es M oines Savings Bank Iowa's L a te st Bank https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and Trust Company - Sixth and Walnut -Des Moines 121 122 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE N ORTH W ESTERN BANKER June, 1922 June, 1922 THE N O R TH W E STE R N BANKER The Iowa National Bank Building The new banking home of the Iowa National Bank, of Des Moines, is a thing of beauty. Des Moines, in fact, all Iowa, can be justly proud of this splendid structure. During the process of construction every possible care was given to the selection of materials and the hank has been equipped in the most modern and efficient way. The advertisements of those whose fine materials and excellent workmanship are responsible for this attractive bank home appear on the following pages. We feel sure they will be of interest to the bankers of this territory. The Northwestern Banker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 123 124 THE N O RTH W ESTERN During the process of the construction of this splendid structure extraordinary care was given to the selection of every thing that went into the building— material— workmanship and equipment. BANKER June, 1922 As a result Des Moines now boasts one of the finest banking homes in America. It has been our privilege to act as general contractors for this fine building. A R T H U R H. N E U M A N N & CO. GEN ERAL CON TR A C TO R S DES MOINES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, THE 1922 N O RTH W ESTERN 125 BANKER Does Your Bank Building Attract Customers? When you are considering plans for building de posits—consider your bank building. Is it attrac tive? Is it pleasing to the eye? Does it really refle c t th e stability and progressiveness Other Representative Banks of your institution? Built By Neumann & Co. In other words, does your building, by the impression it makes upon the minds of the people in your city, attract business to your bank? BANKERS TRUST CO.. Des Moines FIRST N A TIO N A L BANK Newton, Iowa FIRST N A T IO N A L Eldora, Iowa BANK FARMERS BANK Nevada, Iowa Buildings that a r e distinctive—that re flect stability and progressiveness—are the result of expert engineering advice such as the Arthur H. Neumann & Company can furnish you. A R T H U R H. N E U M A N N & CO. 519 HUBBELL BUILDING DES MOINES R ea d ers will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to our advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 126 THE N O RTH W ESTERN BANKER June, 1922 The B ackbone of the Beautiful New Iowa National Bank Building Was Furnished by the Pittsburgh - Des Moines Steel Com pany DES “ WHEN M O I N E S , I O W A Y O U TH IN K STEEL THINK P ITT SB UR G H - DES M O IN E S h e a d ers will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ’ ’ June, 1922 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE N O R T H W E S T E R N BANKER 127 128 THE N O R TH W E STE R N BANKER June, 1922 Adding Beauty and Efficiency To the Splendid Iowa National Bank Home in order to give their customers the best of service in surroundings that are attractive and convenient. \Jaeger Service carries out your architect’ s plans and specifications to the letter, or offers ideas in the proper combination of marble, bronze and wood work representing convenience, beauty and permanence. HYou can bank on Jaeger Business Building Fixtures. JAEGER MANUFACTURING COMPANY Eighth and Vine Streets :: :: DES MOINES, IOWA In the New Iowa National You Will See Furniture from Davidsons INTHE offices of the big insurance com panies, financial institutions, schools, court houses and banks in all parts of the state, you will find Davidson fur niture. Our ability to handle big jobs, and our willingness to take care of small ones, makes our service of real value to banks needing’ office furniture. Office, Bank, Hotel, School and Residence Outfitters MVIDSON S u sos® ¡M a c a r a n Des Moines Waterloo Rock Island 4 1 2 -4 1 4 -4 1 0 -4 1 8 -W A L N U T -S T . R ea d ers will c o n fe r a fa v o r by m en tion in g T H E N O R T H W E S T E R N B A N K E R when w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Kansas City June, THE 1922 N O R TH W E STE R N 129 BANKER Candidate for Vice President W ill A. Lane, cashier of the First National Bank, W aterloo, Iowa, has been urged by his many friends to be a candidate for the vice presi dency of the Iowa Bankers’ Associa tion this year. Mr. Lane began his banking career at Guthrie Center with the First W e Helped to Furnish the New Iowa National Bank N ow — Let Us Help Furnish Your Bank, Office or Home Let us assume the responsibility for outfitting your office or your Home. Chapman’s 27 years of fair dealings assure you of prompt, efficient S E R V IC E that means complete Satisfaction. W e invite you to write or call at any time. W alnut S t ' D E S M O IN E S * W a l n u t sT The Most Fascinating Story J in the World W ILL A. LANE National Bank in 1905. In 1913 he became cashier of the First National Bank of Indianola, and in 1920 he went to W aterloo as cashier of the First National. He has been man of Group been an active interests of the ciation. secretary and chair Six, and has always worker for the best Iowa Bankers’ A sso Mr. Lane’s popularity with the bankers of the state, and the fact that lie is well qualified for the posi tion of vice president, practically as sures his election. So far there are no other candidates for the office. Bank Location. The fact that four banks have closed in Sioux City during the past twelve months, has left an unusual opening for a new institution. A practical banker com manding from $25,000 to $50,000 can secure a desirable directorate and active business men for stockhold ers. Address at once. Geo. C. Call, Sioux City, Iowa. (Advertising). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis — Is the History of a Progressive Bank Fascinating is the record of red-blooded achievement of the Iowa National Bank, Des Moines, that has for many years been so large a factor in the progress of Iowa. The acquisition of a superb new banking home is a notable event in the history of this bank. T H E N O R T H W E S T E R N B A N K E R is proud to chronicle its occurrence, just as T H E N O R T H W E S T E R N B A N K E R has faithfully reported the progress of all Iowa banks year after year. W e pledge the services of this magazine to the fullest support of such institutions whose histories are so closely inter woven with the history of “ The Necessary Financial Journal9* The Northwestern Banker PUBLISHER 130 THE N O R TH W E STE R N BANKER June, 1922 CH ECK IM P R IN T IN G PRICES That Are Really Low The Prices That Will Convince You That We Should Have Your Business CHECK IM PRIN TIN G PRICES Imprinting Customers’ Checks, 1, 2 or 3 to page One Color, Black Ink, Numbered or not Bound 200, 300, 400 o r 500 in 1 b o o k c h e c k b d g ........................................... 5 b o o k c h e c k b d g ............................................ GOO in 2 b o o k c h e c k b d g ........................................... 3 b o o k c h e c k b d g -........................................... 800 in 2 b o o k c h e c k b d g ........................................... 900 in 3 b o o k c h e c k b d g ........................................... 1000 in 2 b o o k c h e c k b d g ............................................ 3 b o o k c h e c k b d g ........................................... 5 b o o k c h e c k b d g '............................................ 1200 in 3 b o o k c h e c k b d g ............................................ 4 b o o k c h e c k b d g ............................................ 1500 in 3 b o o k c h e c k b d g ............................................ 5 b o o k c h e c k b d g ............................................ 1600 in 4 b o o k c h e c k b d g ............................................ 1800 in 6 b o o k c h e c k b d g ............................................ 2000 in 4 b o o k c h e c k b d g ............................................ 6 b o o k c h e c k b d g ............................................ A d d i t i o n a l 1 00’ s .............................................................. Loose Punched for binders $1.90 2.20 ............ 3.30 ............ 3.70 ............ 4.20 ............ 4.60 ............ 4.95 ............ 5.60 ............ 6.35 ............ 7.15 .................. 25 2.65 2.85 3.00 3.50 4.25 4.50 5.00 5.50 .20 S ig n a t u r e lin e s 25c p e r o r d e r e x t r a . C o u n t e r s ig n e d lin e s 25c p e r o r d e r e x t r a . C o lo r e d in k 25c p e r o r d e r e x t r a . N o p r o o f s w i l l b e s h o w n u n le s s r e q u e s t e d . Four days is o r d in a r ily r e q u ir e d in c o m p le tin g an o rd e r. I f e a r l i e r d e l i v e r y is r e q u i r e d m a k e s p e c i a l m e n t io n o f it o n y o u r o r d e r . IN FAIRNESS TO YOUR PRINTER don’ t ask him to m eet these prices. Our equipm ent, which makes these prices possible, is the only equipm ent o f its kind in Iowa. Special Machinery— the only equipment of its kind in Iowa makes these prices possible. Quality is not sacrificed but increased. W e can now do your work— better, quicker and above all, cheaper. W e also want you to take advantage of our storage serv ice. This means you can store your stock in our plant and order as required. It is not necessary that your stock be lithographed in our plant in order that you can take advantage of this service. Simply instruct your lithographer to ship your stock to us and thereafter order them as you wish. You will be furnished free with convenient blanks and self-addressed envelopes for sending your imprinting or ders to us. Your stock will be fully insured at no cost to you and stored in a clean store room. Drop us a line indicating you are interested and we will explain fully. You, of course, will be under no obligation. American Lithographing & Printing Co. A HOUSE OF QUALITY AND SERVICE FOR OVER TW ENTY YEARS DES MOINES, IOW A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O R TH W E STE R N BANKER 131 Federal Increases Capital Jt The directors of the Federal Surety Company of Davenport have just authorized the issuance of $250,000 more capital stock to be sold at $250 a share, which will raise the capital from $750,000 to $1,000,000 and increases the surplus approxi mately the same. The Federal was organized two years ago by eastern Iowa bankers and business men. Every one of its directors is an officer or director of a bank. The company began busi ness when depression was at the worst, yet in two years time a pre mium income has been built up from nothing to $3,000 a day. W . L. Taylor, vice president and general manager, has been in charge of the company since its organiza tion. He is an experienced casualty man and much of the success of the Federal has been due to his aggres sive yet conservative management. “ The Federal Surety has not at tempted to grow fast,” Mr. Taylor explains. “ There have been many companies which have written three times the volume we have written in the same length of time, but such companies cannot possibly have the same quality of business. W e are going after the business of Iowa bankers because we are equipped to give them good service and rates as low as can be given by any of the standard stock companies.” All of the departments of the Fed eral Surety are under the manage ment of competent superintendents who have had many years of expe rience. Officers of the Federal Surety in clude Charles Shuler, president; George E. Decker, vice president and medical director; Frank B. Yetter, secretary and treasurer; Herman Staak, assistant secretary and as sistant treasurer; Charles Grilk, gen eral cou n sel; W . L. Taylor, vice president and general manager. D i rectors are M. H. Calderwood, George E. Decker, Charles Grilk, H. C. Kahl, Charles Shuler and Frank B. Yetter. H. B. Hawley, president of the Great W estern Accident Insurance Company, was given a warm wel come upon his return from Europe last month. The offilce force at the Great W estern Company held a re ception for him from three to five the afternoon of his return. Short talks were made by members of the company, with a response by Mr. Hawley. Conceit causes more conversation than wit.— La Rochefoucald. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ANDREW JAY FRAME C H AIRM AN OF T H E BOARD , T H E W A U K E S H A N A T IO N A L B A N K , W A U K E S H A , W IS . If stability in banking is to maintain, and if general stability is to become the rule in all material progress, then large enterprises especially desiring credit should furnish to creditors or banks, say annually, at least, a certified audit made by some competent, fearless and honest expert in the audit line. This statement seems to me a fundamental to ensure solid human progress, because it gives the best known en lightenment, next tojudgment of men, as to whether solvency reigns or an over-expanded condition of the debtor exists. P u b l i s h e d i n t h e in t e r e s t o f b e t t e r b u s in e s s By ERNST 5c ERNST The Red Oak National Bank RED O A K , IO W A Capital . . . . Surplus and Profits . Total Resources Over I . . 100,000.00 180,000.00 2,000,000.00 O F F I C E R S A S Ü D IR E C T O R S B. B. C L A R K , P r e s id e n t R E . S H O E M A K E R , A s s is t a n t C a s h ie r T H O S . D. M U R P H Y , V ic e P r e s id e n t W IL L IA M C O C H R A N E F . E . C R A N D A L L », C a s h i e r E . E . J O N E S , J r. W . M. A P P L E , A s s i s t a n t C a s h i e r GORDON H A YE S WE I N V I T E Y O U R B A N K I N G B U S IN E S S THE 132 N O R TH W E STE R N June, 1922 BANKER Second National Bank AND OFFICERS AND Dubuque Savings Bank D IRECTO RS DUBUQUE, IO W A J. K. D E M I N G , President J A S . M. B U R C H , Vi ce President H E R M A N N E S C H E N , Cashi er and T reasurer J O H N E. W A G N E R , A s s ’t T r e a s u r e r ARTHUR P. MELCHIOR, As s ’t Cashi er A L B E R T W H A R T O N , As s ’t Cashi er C. H. B R A D L E Y GEO. W. K1ESEL J. J. R O S H E K GEO. M cLE A N Resources - $3,000,000.00 We want to serve you— and in serving you we find genuine pleasure. This you will find manifested in the wholehearted co-operation that will be given you at any time— and the careful attention we will give to the details of business en trusted to us. Two and three- quarters per paid on Bank Balances cent F o u r per cent paid on T i m e Deposits Superior Service Assured U. S. Depositary HENRY W AGNER C h a ir m a n o f th e B oard ROUEE O. W A G N E R AVJXT, A . L U G E “ A Mark o f Stability and Service” Do You Appreciate Eagerness to Serve? If you appreciate having your business receive personal individual attention let us serve you. Your business will receive the attention of one of the bank’s officers. It will be taken care of promptly and efficiently. You will find us constantly exerting our efforts to give all patrons the most accurate service. A bove all, you. will like the spirit of this institution as shown by our genuine eagerness to serve you. W e will welcome the test of our “ eagerness.” Total Resources Over $3,000,000.00 CA PIT A L CIT Y ST A T E BANK East Fifth and Locust Streets DES MOINES R eaders w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE Celebrates Tenth Anniversary The Northwest Davenport Sav ings Bank, which is celebrating its tenth anniversary this year, as the name implies, is a bank of $50,000 capitalization lying in the heart of Northwest Davenport which is a suburb of the city of Davenport, supplying a territory containing about 4,000 people both within the city limits and without. Northwest Davenport being about two miles from the business district of the city of Davenport, contained cpiite a few business houses of its own, and the business men and mer chants had long felt the necessity of some financial agency in that part of the city. Consequently, in the spring of 1912, this bank was or ganized. It did not, however, com mence business until the first of O c tober, 1912, it being the opinion of the directors that the bank should not open for business until its new building had been completed. The building was completed and business stared on the first of October. From the day of its opening, the bank has been a great financial success. The first day’s deposit showed $50,000. At the end of the first year the bank had over $200,000 on deposit and since that time it has steadily in creased, until today its deposits alone N O R TH W E STE R N BANKER amount to approximately $1,250,000 and its entire resources are about $1,500,000. The bank has been under a con servative management ever since its organization and the same board of directors which was originally s e lected by the stockholders at their initial meeting, have directed the af fairs of the bank, with the exception of two who have died in office. The directorate is composed of seven business men in Northwest Daven port and two prosperous farmers living in the rural territory which comprises part of the bank’s terri tory. The bank has been paying a year ly dividend in the last three years of 7 per cent, payable semi-annually. Before that time it had paid 6 per cent for a number of years and pre viously it had paid 3 per cent divi dend. “ W hen the bank was organized the persons interested limited the hold ings of any original subscriber to stock to no more than five shares,” explains Henry H. Jebens, director and attorney. “ This was done in order to scatter the stock as much as possible among the community where the bank was organized. The entire $50,000 issue of the stock was subscribed within a few days. Since 133 that time the directorate have at tempted to maintain the policy of having the stock scattered as much as possible, and in the hands of as many holders as possible, as far as it has been within their power to con trol or regulate the same. The suc cess of the bank in my opinion has been due very largely to the number of people interested in being stock holders in this institution. The whole proposition has met with a very generous and substantial re sponse from the citizens in North west Davenport and the surround ing territory and the rapid progress of the bank indicates that the bank has a large number of patrons and a great many loyal and enthusiastic supporters.” J. S. W eber is president of the Northwest Davenport Savings Bank. William C. Burrman has been cash ier of the bank ever since its organ ization. Peter Peters is vice presi dent and Albert Eggert is assistant cashier. T o be content with what we possess is the greatest and most se cure of riches.— Cicero. The harder a man works the less time or inclination he will have to whine. A N N O U N CIN G The Modern Country Bank Service It's brimming full of new ideas Country Banks can keep step with the city banks by obtaining “ The Modern Country Bank Serv ice. It is A G R E A T T IM E SA V E R . Contains: Elements Necessary to Give Service, Bank W ork Outlined, The Follow -U p System, Advertising, and Letters. They all say, “ It’s just what I have been wanting.” Every banker should have “ The Modern Country Bank Service.” W rite today for further informa tion. Address, D. R. W essling, President, Lytton Savings Bank, Lytton, Iowa. Readers will confer a favor by mentioning TH E N O R T H W E S T E R N B A N K E R when writing to our advertiser* . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE 134 PC D u N O R TH W E STE R N X BO jj^Isi !S CD P ü i June, 1922 BANKER ili A Dependable Bank Faith in the future of South Dakota and the N orthwest; with a realization that a broader and better banking serv ice was essential, our institution has inaugurated an Extension Department. The Dairy Division recently installed has proven a boon to country bankers and customer-farmers purchasing dairy cattle through us. h e are pleased to offer banks, individuals and corporations the advantage of our additional service. The Dairy C ow Mother of Prosperity mm H l1 Sioux Falls Savings Bank Sioux Falls, South Dakota F. H. Johnson, President TH E L A R G E S T X https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Don B. Johnson, Vice President B A N K IN K. B. Cressey, Cashier S O U T H X D A K O T A June, 1922 THE N O R TH W E STE R N BANKER 135 SO U T H D A K O T A B A N K N E W S Official Publication South Dakota Bankers Association EXECUTIVE COUNCIL South Dakota Bankers Association P r e s i d e n t ........................... M . P l i n B e e b e , I p s w i c h , P r e s i d e n t B a n k o f I p s w i c h V i c e P r e s i d e n t . . . . D . M. F i n n e g a n , Y a n k t o n , V i c e P r e s . F i r s t N a tl. B a n k S e c r e t a r y ..................................................................................... L . J. W e l c h , M i t c h e l l , S. D . T r e a s u r e r ................................F . R . S m it h , P l a t t e , C a s h i e r F a r m e r s S t a t e B a n k E i n e r J o h n s o n , C h m . G r o u p 1 .........................C a s h i e r V o l i n S t a t e B a n k , V o l i n T h o s . A . W a d d e n , C h m . G r o u p 2 . . . V . P r e s . L a k e C o . N a t ’l B a n k , M a d i s o n J. W . B r y a n t , C h m . G r o u p 3 .................................................................................................... .................................. V i c e P r e s . C o m m e r c ia l T r u s t & S a v i n g s B a n k , M i t c h e l l E . R . Z a l e s k y , C h m . G r o u p 4 ............ P r e s i d e n t F i r s t N a t i o n a l B a n k , E l k t o n F . S. B r o w n , C h m . G r o u p 5 ............ P r e s i d e n t S t a t e B a n k o f D o l a n d , D o l a n d A . K o p p e r u d , C h m . G r o u p 6 . . . P r e s . S e c u r i t y B a n k & T r u s t C o ., W e b s t e r C- D . S m it h , C h m . G r o u p 7 ...............P r e s i d e n t F i r s t N a t i o n a l B a n k , L e m m o n M. M . B r o w n , C h m . G r o u p 8 . . . . P r e s . C o m m e r c ia l N a tio n a l B a n k , S tu r g is J. F . S t e w a r t , C h m . G r o u p 9 .............. P r e s i d e n t F a r m e r s S t a t e B a n k , D a l l a s Esmond State Doubles Capital wich, president of the South Dakota The capital stock of the Esmond Bankers Association. Many problems of importance to State Bank of Esmond, South D a kota, has been increased from $10,000 the bankers were taken up for dis to $20,000. It has deposits of $120,- cussion. The invitation to attend 000. This institution, established in the group meeting was taken ad 1906, has had a good growth under vantage of by bank directors as well the follow ing management : Presi as bank officers in the groups. dent, Andrew Kopperud ; vice presi Dates for the group meetings in dent, H. I. O lston; cashier, Geo. Ost- the state were as follows : root. Mr. Kopperud is interested in Group 1 at Yankton, May 10th. a number of other South Dakota Group 7 at Mobridge, May 11th. banks. Mr. Olston has been in the Group 8 at Rapid City, May 16th. banking business for a period of Group 9 at Winner, May 18th. forty years and is also president of Group 3 at Mitchell, May 19th. the First National Bank of Lake Group 5 at Huron, May 23d. Preston. Mr. Ostroot, cashier, came Group 4 at W atertown, May to Esmond from the First National 24th. Bank at Lake Preston. W . J. W ilGroup 2 at Dell Rapids, May 25th. kens is assistant cashier of the E s mond State. Make Changes at Garretson Receives Extension of Charter A t a meeting of the stockholders of the Minnehaha State Bank, Gar retson, South Dakota, two changes were made in the officials of the bank. C. O. Berdahl, who has been cashier for a number of years, was made vice president, and J. O. Ber dahl was elected cashier. J. A. Thronson remains the president of the institution. The James Valley Bank of Huron, South Dakota, has been granted a charter for another twenty years. This bank, organized in 1902, is cap italized at $60,000. Officers are: President, R. E. C on e; vice presi dent, C. H. Bonesteel; cashier, C. C. Sm ith; assistant cashier, Carl E. V o ig h t; assistant cashier, W . L. Voight. Directors include: R. E. Cone, C. H. Bonesteel, John J. Greene, R. W . Clarke and M. L. Tobin. Citizens State, Colman Resources and liabilities of the Citizens State Bank of Colman, South Dakota, are $371,419.97, ac cording to a recent statement of con dition. Deposits total $228,677.70. G. H. Allen is president and E. A. W eiseth cashier of this institution. South Dakota Group Meetings The program for the South D a kota group meetings included ad dresses by Harry Yeager of the Fed eral Reserve Bank at Minneapolis, by John Hirning, state bank exam iner, and by M. Plin Beebe of Ips https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Few Failures In South Dakota South Dakota holds the proud dis tinction among northwestern states of having no single state bank fail ure during the whole of 1921, accord ing to the controller of the currency. Taking the nation over there was a failure of a state or private bank upon every one of the 365 days of last year, but none of them in South Dakota. First National, Colman A recent statement of condition of the First National Bank of Colman, South Dakota, shows the resources and liabilities of that institution to be $548,544.17. Deposits are $392,056.83. C. H. Rawson is president and L. B. Keith, cashier. Banking Hours Changed Banking institutions of Lead, South Dakota, have changed their hours of opening in line with the change in working hours of the m in ing companies in that vicinity. They are now open from 9 A. M. to 4 P. M., former hours being from 10 to 5. South Dakota Banks Improving An increase of $7,391,000 in the resources of the state banks of South Dakota from December 31, 1921, to March 10, 1922, is the showing made by the summary of the state ments of these banks filed with the state banking department. The showing for the March date is $142,111,000, as against the Decem ber showing of $134,720,000. The same reports show that the average reserves of the state banks at the time of the March call were 20.3 per cent. S. J. Wandvik Succeeds A. H. Hill Arthur A. Hill has resigned as cashier of the Perkins County State Bank of Chance, South Dakota, and plans to enter life insurance work. S. J. W andvik, cashier of the Citi zens State Bank of Isabel, has been elected to succed Mr. Hill. Mr. W andvik retains his position with the Isabel bank and will divide his time between the two banks. Mr. W andvik was connected with the Chance bank as assistant cashier in 1916. THE 136 N O R TH W E STE R N BANKER June, 1922 This Bank Stands for Strength—Service—Stability W e invite business on our record— If, in the round of events, you should have oc casion to make changes in your Aberdeen relations, we invite correspondence. Citizens Trust & Savings Bank Aberdeen, South Dakota D A K O T A N A T IO N A L B A N K ABERDEEN, S. DAKO TA iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii[iiiiiiiiiiiiiiiiiiiiiiiiiii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii [ ii i[ i ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii [ ii ii ii ii n i ii ii ii ii ii in ii ii i] i i[ | ii ii [ | |[ i ii i[ i ii ii ii ii ii ii ' W e have character, the organization, the experience and the financial responsibility to give satisfactory and efficient service to banks and bankers. OFFICERS W . D. S W A IN , Vice-President ED . A . P O R T E R , Cashier H. C. M cC A R T N E Y , President M A R T IN J. T R O N V O L D , Asst. Cashier TH O S. E. P O R T E R , Assistant Cashier R eaders will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O R TH W E STE R N BANKER 137 Aberdeen, the Hub City, Is Important Manufacturing and Jobbing Center By M . W . Williams Secretary Aberdeen Commercial Club BERDEEN lies at the junction of four railway systems, the Chicago, Milwaukee & St. Paul transcontinental line, the Chicago & Northwestern, the Minneapolis & St. Louis, and the Great Northern, and being so situated is the real Hub City for a vast trade and geographic cen ter. Being the largest city in an area of more than 90,000 square miles, its influence and reputation cover a broad and fertile field. Here are located nearly a hundred manufacturing and jobbing houses which have taken ad vantage of Aberdeen’s strategic loca tion. In Aberdeen live and from Aberdeen travel more than 150 traveling salesmen who carry the message of Aberdeen and its ad vantages throughout the great Northwestern Empire. Aberdeen is located at the junction also of two great highway systems— the Yellowstone Trail, transcontinent al in character, with one extremity on the Pacific and the other on the A t lantic, and the Sunshine Highway, in ternational in character, with one ter minus in Canada and the other at Gal veston, Texas. These two motor sys tems bring to the city annually thou sands of motorists. The city park system operates five parks ranging in size from a little more than a city block square, the smallest, to 160 acres, the largest. The parks are well maintained and equipped, and the city zoological gar dens, located at Wylie Park, with its buffalo, elk, deer and other animals, is fast assuming proportions that would be a credit to a city several times the size of Aberdeen. The mu nicipal bathing beaches and bath houses, and the municipal dance pa vilion form summer recreational fea tures of advantage and interest to the citizenship at large. Aberdeen has kept abreast with the times in the matter of clubs and socie ties, and here we find a well-organized Commercial Club with a complete and equipped club house, a Country Club with club house, golf course and ten nis courts, a Gun Club with grounds and traps, and upon whose ground the 1922 State Trapshooters’ Association will hold their annual state shoot, a Rotary and a Lions Club which are working in conjunction with the Com mercial Club toward the betterment of the city, the Business Women’s Club. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis which is composed of business women of the city, and the City Federation of Woman’s Clubs, which is composed of practically all the study clubs of the city. The educational side of Aberdeen has not been neglected, for here we find two parochial schools, six grade schools, a junior high school, an ad vanced high school, a business college, a tractor and auto mechanical school, and the Northern Normal & Indus- TENTATIVE PROGRAM South D akota Bankers Association Aberdeen, June 7th and 8th WEDNESDAY, JUNE 7TH Forenoon Concer t at Sh er man Hotel . ... I nvocati on.................................... Selection.................................... Addr ess of W e l c o m e _______ Response........ .......................... Selection........................................ Presi dent’s Address. . .............. Mi ni ng in South Dakot a........ Banki ng in South Dakot a.... A p p o i n t men t of Commi t t ees Report of Officers Annou ncemen t s ..................................................... S. D. Bankers Band ............................................................. Reverend Smi t h ...................................................... S. D. Bankers Band ............................................................. Ma y o r Ed Hall D. M. Fi nnegan, V, Pres. S. D. Bankers Assn. ................................................S. D. Bankers Quartet ................................................................ M. Plin Beebe ........President O ’ Har a, State School of Mines .......... ................... J oh n Hi r n i ng , Supt. of Banks Af ter noon S e l e c t i o n . . . ............................... .........................................................S. D. Bankers Band Rural Cr ed i t s.................................. C. M. He n r y , C h a i r ma n Rural Credi ts Board Li ve Stock I ndustry in South Dak ot a.................... ............................................... ..........................A. L. Freelove, President Fi r st Nati onal Bank, Kennebec Ag r i cu l t u r e in South Dakot a........................................... E x- Gov . F r a n k M. Byr ne Vi oli n Sol o................................................Ronald Barkl, Fi r st State Bank, W a r n e r Return of Pr osper i t y ....................................................................................................... ------------ Geo. Woodruff, V. Pres. Nati onal Bank of Republic, Chicago Sel ection.......................................................................................... s. D. Bankers Quar t et H i g h w a y Pr o gr am in South Dakot a..................................................................... .... .......................Chet Leedom, S. D. H i g h w a y Commi ssi on Meeting of Ame r i c a n Bankers Assn, for Electi on of Officers Meeting of State Bankers to Select Commi t t ee of T w e l v e to Recom mend Names to Gov er n or for Gu a r a n t y Fund Commi ssi on Baseball at W i l e y Park, Mitchell vs. Aberdeen Dance at W i l e y Par k T H U R S D A Y , JU N E 8TH Forenoon Concer t at Sher man Ho t el ...........................................................S. D. Bankers Band I nvocati on.............................................................................................. Rev. F. B. Bartl ett Bank of Nor t h Dakot a....................... ............................................................................. ................................ J. J. Earl ey, Executi ve Council of N. D. Bankers Assn. Selection............................................ ............................................. s. D. Bankers Quartet Probl ems Affecting A g r i c u l t u r e ................................................................................. ........................................... J. K. Ho war d, President Ame r i c a n F a r m Bureau Bank of South Dakot a.............................................................. ...................................... ............. Fred Smi t h, Cashi er F a r me r s State Bank, Platte Afternoon Selecti on............................................................................................. s. D. Bankers Band Li gni te Fiel ds of South Dakota. .......................................................... J. B. Slossen H y d r o - E l e c t r i c ........... ....................................................................... Hon. J. W . Par ml ey C ement in South Dakot a................................................................. Hon. L. L. W y m a n Musical Selection Ad dr ess.......... ...........T h o s . B. Mc Ada ms , President Ame r i c a n Bankers Assn. Electi on of Officers Pr o g r am will be interspersed wi t h C o m m u n i t y Si ngi ng led by Mr. Rob erts of Si oux Falls, S. D. Ru mo r s are afloat that there will be other quartets at the Conventi on that undoubtedly wi ll sing at opportune as well as inopportune times. THE 138 N O R TH W E STE R N June, 1922 BANKER ABERDEEN NATIONAL BANK ABERDEEN, SOUTH D A K O TA I I I I lH I lI H U lll l ll ll l ll ll l ll ll l ll ll l ll lI ll ll l ll ll l I ll l ll ll I I I I I I lI I l lI H I I l l lI l l I l I I l ll li l ll ll l ll ll l ll ll l ll ll l ll ll l ll l While you are in Aberdeen attending the Convention, or at any other time, the officers of this bank will consider it a pleasure to serve you. Here banks and bankers will receive individual, personal attention. iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiii OFFICERS J. C. BA SSE T T , President W . W . B A SSE TT, Vice-President C L Y D E B O W M A N , Assistant Cashier C. A . BR E M E R , Cashier C L A R K E BA SSE T T , Assistant Cashier A Bank f o r Bankers in Our Territory S e c u rity N a tio n a l B ank Sioux Falls, South Dakota , C a p itl Surplus and P rofits $500,000.00 OFFICERS W . Z. S H A R P , P r e s id e n t J O H N B A R T O N , V ic e P r e s id e n t D. A . M cC U L L O U G H , V ic e P r e s id e n t J A S . B. L A M B E R T S O N , C a s h ie r F. W . K O N E M A N , M anager F arm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D E L M A R C. R O W E , A s s t . C a s h i e r G E O . B. M cM A H O N , A s s t. C a s h ie r J. V I R G I R R O W E , A s s t . C a s h i e r O R I V E R A . B R A Y , A s s t. C a s h ie r R oan D ep a rtm en t June, 1922 THE trial School, a state institution of higher education having a national reputation as the best school in the United States upon the theory and practice of rural education. The Tri-State Fair Association, owning and operating a quarter sec tion of land for fair purposes, con ducted their first exhibition in 1921 with great success and expect to make the Tri-State Fair an annual institu tion without a superior in this section of the country. The Aberdeen Base ball Club, with a franchise in the Da kota League, affords clean baseball. Retail stores of the city are many in number and represent every line of sound merchandising, with full and complete stocks from which the popu lation of Aberdeen’s great territory has a wide variety of selections. The confidence with which they are held by their trade area is well established by the fact that their volume of busi ness runs into millions of dollars per year. The news, international, national, state and local, is carried to the city of Aberdeen and through the great central Northwest by means of three daily newspapers, the Aberdeen Amer ican, the Aberdeen Journal and the Aberdeen Daily News.. Here is also located the plant and offices of the Da kota Farmer, conceded to be one of the g r e a t e s t agricultural papers printed in America today. In fact and in short, Aberdeen has all the advantages that rightfully be long to a metropolitan center, and all of these advantages, together with its hospitality, is extended to each and every member of the South Dakota Bankers Association who expect to visit it during the coming convention, or at any other time. N O R TH W E STE R N BANKER 139 MR. B A N K E R : Money K EP T IN SOUTH D A K O T A is Money K EP T IN SOUTH D A K O T A BANKS. This Is a Growing Habit of Your H om e Com pany Policyholder’s National Life Insurance Company Old Line Legal Reserve Fifth Floor Sioux Falls National Bank Building Sioux Falls, South Dakota EXPERIENCE Commenced business November 24, 1919. One death loss $2,000. Every investment in South Dakota. Every dollar in South Dakota Banks. Policyholders’ reserve deposited with South Dakota Insurance Department. During 1921 Increase in Gross assets___________________________$ 64,494.40 Increase in Reserve_____________________________$ 41,788.15 Increase in Bank Deposits________________________$ 26,165.80 Increase in Surplus______________________________$ 5,419.47 Increase in Insurance in Force______________________$922,625.00 December 31, 1921 Policies Written and in Force $2,867,500.00 OFFICERS G U Y C. B A R T O N , President S. ET. W IT M E F , Vice President, Mgr. Agents H . O. C H A P M A N , Secretary-Treasurer Agents of Character and Ability Wanted Convention Entertainment Features D. H. Lightner, cashier of the Citi zens Trust and Savings Bank, of Aberdeen, has the following announce ment regarding convention entertain ment features : “ There will be a baseball game each afternoon between the Mitchell and Aberdeen teams of the Dakota League. One admission ticket is being fur nished each delegate free. In the evening of the first day there will be a dance at the Municipal Pavilion at Wylie Park with band music. Street car tickets for use both at the ball game and the dance are furnished free. The ladies will be entertained both afternoons by a committee of bankers’ wives. Those wishing to play golf will be afforded that opportunity. At noon of the second day there will be a dinner served to past presidents of the association, including also some of the out-of-state guests appearing on the program.” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Atlantic Action Both the shipper and the shipper’s bank are placed in direct banking com munication with the New York whole sale district through Atlantic National service. And this, too, with the assur ance of personal attention and close cooperation. ATLANTIC National Bank 257 Broadway-OppositeCityHall P h i n e a s C. L o u n s b u r y C h a ir m a n H erm an D. K o u n tze P r e s id e n t E d w a r d K . C h e r r ill V ic e P r e s id e n t G ilb e r t H. J o h n s o n V ic e P r e s id e n t K i m b a l l C. A t w o o d V ic e P r e s id e n t C h a rle s F . J u n o d V ic e P r e s id e n t F ra n k E. A n d ru ss C a s h ie r J o h n P. L a ir d A s s is t a n t C a s h ie r J oh n H. B ren n en A s s is t a n t C a s h ie r H u g h M. G a rre ts o n A s s is t a n t C a s h ie r J o h n H . T r o w b r id g e A s s is t a n t C a s h ie r G e o r g e M. B r o m le r M g r. F o r e ig n D ep t. THE 140 N O R TH W E STE R N BANKER June, 1922 COMMERCIAL PAPER Dakota Trust & Savings Bank Capital and Surplus $120,000.00 S IO U X FALLS SOUTH DAKOTA W here you and your friends are always welcome. W e are always glad to be of every possible assistance to Bankers and friends whom they direct to us. W e like to “ Talk Things Over” with other Bankers and we ap preciate a visit from you when in Sioux Falls. N. O. M O N S E R U D , President V E R E H. T O M C O S T E L L O , Vi ce President C A R L G. O. A. H A Y W A R D , Vi ce President E R I C K G. H O L T O N D A V E N P O R T , Trust https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M A S T E R S , Cashi er N E L S O N , Asst. Cashi er H O L D E N , Asst. Cashi er Officer (Continued from page 25.) in our more recent financial stress, great extent was during the panic The 1907 panic happened to be just a little bit prior to my personal knowl edge of such affairs but the older bankers of Des Moines tell me that practically all commercial paper which they were carrying at that time was handled in a very satisfac tory manner. Brokers do not, of course, endorse any paper which they sell, neither do they assume any responsibility for the collection of such items. W ith one exception however, the brokers during this period were very active in their ef forts to assist their clientele in get ting any paper which they were carrying paid at maturity. The one exception which I speak of was a Chicago brokerage firm, and whether they know it or not the fact that they failed to at least lend their moral support at such a time has cost them many thousands of dollars worth of business in this city. Their attitude was that they had no re sponsibility in the matter at all. This was true so far as the financial side was concerned, but the least they could do was to lend their moral support and I daresay if they had it to do over again they would change their viewpoint. The use of commercial paper as a medium of finance should be by its nature, confined to the raising of June, THE 1922 N O R TH W E STE R N BANKER A Friendly Bank OF TH E PEOPLE operated FOR T H E PEOPLE and recognized BY TH E PEOPLE Banks, like men, are known by their records, and we point with pride to our standing as a correspondent, appreciating the trials of our associate banks. Uniform Courtesy Assured to All The Sioux Falls National Bank Sioux Falls, So. Dak. John W . Wadden, President Eugene Reiley, Vice-President Robert Muckier, Cashier (THE POPULAR BANK) R ea d ers w ill c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 141 142 THE N O R TH W E STE R N First State Savings Bank of Aberdeen ABERDEEN, S. D A K O T A W e like to feel that the growth of this hank is the result of the spirit of helpfulness and whole-hearted cooperation that enters into the transaction of all business en trusted to its care. W e Will Consider It A Genuine Pleasure To Serve You OFFICERS J. L. B R O W N E , President W . M . RUSSELL, Cashier J. C. B A SSE TT, Vice-President C. F. H A U G E , T^O R Vice-President 0 . A . C A L D W E L L , Asst. Cashier M. H . H U G H ES, Asst. Cashier DEPENDABLE first Mortgage Eastern South offerings in Farm Loans, in Dakota, communicate with Security Investment & Mortgage Company, Brookings, South Dakota. Affiliated with The Bank of Brookings, Brookings, South Dakota. Combined capital and surplus $325,000.00. Over $10,000,000.00 mortgages in force. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKER June, 1922 at least slow in the development of credit organizations for the purpose of making the necessary investiga tions required for the selection of proper commercial paper. The purchase of commercial paper is a very particular matter and should only be entrusted to one who is very well versed in such matters. Every individual case of purchase must of necessity be settled on its own merits. Such purchases should be bought through an accredited agent or someone in good standing. In the larger city banks such trans actions are carried on with brokers. The majority of such business in this community, particularily our rural banks and outside of a few of our larger institutions, is handled through Chicago correspondents. This is due to the fact that Chicago institutions are without a doubt much better fitted to make a good selection than banks in the smaller community. Most individual banks, however, make their own investiga tions and this I believe is right. All such commercial paper can be purchased under a ten or fifteen-day option agreement. This gives the purchasers ample time to make their own investigation. A long this line I would suggest that probably the most important thing is to assure ones self that the men connected with the firm or corporation issuing such paper, are men known to have absolute and unquestioned integrity and again the firm or company issu ing this paper should be proved to have been successful beyond any question of a doubt over a period of years, under its present manage ment. Buy paper of companies or firm dealing only in staple commodities for which there is a steady demand and which is not a luxury. If the company or firm deals in other com modities an additionally strong showing should be required. Make sure that the company issu ing this paper shows a good ratio of quick assets as against their quick liabilities. This will of course, vary according to the nature of the busi ness. For example, a furniture company in my estimation, necessar ily needs to make a better showing in their financial statement than some other concerns, due to the fact that their line of merchandise is quite susceptable to market fluctua tions. A tobacco concern on the other hand, is generally considered to be a company which does not re quire such a high ratio as their line of goods is more staple— being one that is always in demand and one which they are absolutely assured June, 1922 THE of marketing. Grain companies have periods of the year when they should not be issuing any commercial pa per. Their particular line of busi ness is periodical, there being cer tain times of the year when they are buying very little, if any, grain and they should consequently and gen erally do have their paper mature at such times as will enable them to entirely eliminate their borrowing by commercial paper for that period. In making an investigation of the statement of a concern, issuing the paper, make sure also that the mer chandise shown as being carried, is appraised at a fair market value. Make sure that the statement shown be audited or comes through persons entirely competent to judge of their correctioness. Make sure that the borrower keeps one or more bank accounts in a large city near the lender which vouch for the goodness of the com pany’s paper. If the company in question is in a country town, at least two of the banks in its home town should vouch for it besides one or two respon sible banks in a larger city. If the company is in a large city at least two banks should report favorably on it. It is also a good plan to make inquiry of banks com petent to judge of the credit other than the banks with which the con cern is doing business. W here trade references can be easily obtained, it is a good plan to get several satisfactory references from such people. Last and least important of all is the rate. Your real object in buy ing commercial paper is that you may have in your assets at all times a certain amount of receivables that will be readily convertible into cash should the necessity arise. Safety should always come first and the best buyers of paper will always have this first in mind. W ill Oppose State Bank An active compaign against the proposed Bank of South Dakota must be waged by the bankers of South Dakota if that state is to es cape the financial troubles that North Dakota has had, it was agreed by bankers and bank directors to the number of 100 who atteneded the annual meeting of Group 1, South Dakota Bankers’ association, at Yankton, South Dakota. The campaign will be actively launched at the association’s annual convention in Aberdeen next month. The state government is the big gest business in the state, yet it gets https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O R TH W E STE R N BANKER the least attenion, declared C. M. Henry, head of the state rural credit commission, in an address. He urged bankers to take an active in terest in their local and state govern ments. Taxes are high because we are over-bonded, but people should figure the increase in taxes before the bonds are issued. They are re sponsible themselves for much of their added tax burden, he said, in a discussion of taxation of bank shares. “ From all indications the crisis is about past,” declared John Hirning, state superintendent of banks. “ Our deposits are on the increase, our re serves are getting back to normal. General business conditions are showing an improvement. Our farm products are bringing better prices, and with a fair crop, and fair prices next fall, our troubles will be about over.” The meeting was attended by bankers from a dozen counties and from Minneapolis, St. Paul, Sioux Falls, and Sioux City. A banquet closed the meeting. It was voted to hold next year’s meeting at Elk Point. W . A. Schaetzel of Elk Point, was elected group president, and M. E. Authier of Elk Point, was chosen secretarytreasurer. Andrew Kopperud, of W ebster, was given the endorsement of Group 1 for vice president of the state association for election at the Aberdeen convention, and Elmer Johnson, of Volin, was endorsed to succeed himself for member of the executive council. New Automobile Policy The Great W estern Accident In surance Company of Des Moines has put out a new automobile and travel policy which will sell for $5 a year. I he policy pays a principal sum of $1,000 for accidental death, loss of both hands, feet or eyes, etc., $500 for the loss of one hand, etc. The policy includes accidents when loss is sustained by accidental means “ through contact with, or while rid ing in, any of the follow ing named vehicles: an automobile, motor bus, taxi cab or motor truck,” or “ if such loss is sustained by the insured by accidental means while riding as a passenger in or on a railway pas senger train, street car, passenger elevator or passenger steamship.” Certain sums are paid for each and every kind of a fracture. There is no payment for loss of time, pay ment being based upon specific and optional benefits, plus a $10 surgical treatment clause. The age limits are sixteen to sixty-five. 143 CHAS. L. NICHOLSON, President H. R. WOOD, Secretary The Inter-State Surety Co. Redfield, South Dakota A surety company owned and operated by South D a kota people for the conven ience of its citizens. W e write Fidelity and Sur ety Bonds, Plate Glass and Bank Burglary Insurance and with our location and familiarity with local con ditions are in position to render prom pt and efficient service. Paid Up Capital $133,700 Surplus and Reserve $126,978 You Will Find The Northwestern Banker at your service 365 days of the year. For over a quarter of a century the dominant financial journal of the Northwest. We welcome an opportunity to serve you. MEMBER Financial Publishers Association Audit Bureau Circulations THE 144 N OR TH W E STE R N FARNAM STREET 0 8 5 7 BANK THAI HAS WEATHERED THE STORMS OF 6 5 YEARS Time has demonstrated the sound ness of the policies on which the first Board of Directors founded this bank and which have continued throughout its existence. Through the many periods of finan cial stress the First National Bank has been amply able to care for its custom ers and to aid in stabilizing the coun try's credit, because its daily affairs have consistently been conducted in a sane, conservative and normal manner You are invited to transact your banking business in these unusual times with a bank whose experience has been seasoned with everything both of pros perity and adversity through which this country has passed since 1857— a bank that is time tried and storm tested. First National I Bankof Omaha https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKER June, 1922 June, THE 1922 N O R TH W E STE R N BANKER 145 NEBRASKA B A N K N E W S at a Kensington. The meeting ended L. M. Lord Dies at Omaha L. M. Lord, chairman of the board with a banquet in the evening at of directors of the Live Stock N a the Hopkins Hotel, where S. B. tional Bank, and prominent business Parker of Tecumseh spoke on the man of Omaha, died at his home opportunities of the county associa Wednesday, May 10th, after an ill tion. Other banquet speakers were ness of two months. Mr. Lord was Mrs. A1 N. Dafoe on “ Bankers’ born at Madison, W is., in 1866 and W ives,” and W . B. Ryons on “ In entered the banking business at an cidents of Banking.” Musical num early age, spending a number of bers and vaudeville were inter years in the banking business of the spersed in the program. Officers of the Johnson County west and middle west. He came to R. F. Clarke Succeeds D. S. Fase association are: Frank Dafoe, presi South Omaha in 1907 where he or D. S. Fase has resigned as assist dent, Tecum seh; H. C. Platt, vice ant cashier of the Banking House of ganized and established the Live president, Crab Orchard; E. H. John Stock National Bank, becoming its A. W . Clarke, Papillon, Nebraska, son, secretary-treasurer, Sterling; F. and will spend several months in first cashier. C. Rulla, Vesta, and C. H. Bickel, Several years later he was ad travel and vacation before making Cook, executive committee. vanced to the presidency, in which any other business connection. He is succeeded at Papillon by Robert capacity he continued until a year Nebraska Group Meetings F. Clarke, son of I. D. Clarke, cash ago, when he was elected chairman of the board of directors. Mr. Lord Three group meetings were held ier. was widely and prominently known by the Nebraska Bankers Associa in business circles. He had many tion at the following towns : Group Group Two Meets at Fremont friends and his judgment was sought 4 at McCook, May 23d; Group 5 at A t the meeting of Group 2 of the and highly respected. He was well Kearney, May 24th, and Group 1 at Nebraska Bankers Association, held known among the banking frater Lincoln, May 25th. Many Omaha at Fremont, Nebraska, R. O. Brown nity and was closely identified with bankers attended each of the meet ell, cashier of the Schuyler State the live stock industry all during his ings on a special Pullman car, ar Bank of Schuyler, was chosen presi life. He was married in Chicago in ranged for by C. F. Brinkman of the dent for the follow ing year. Other 1894 to Miss Agnes Short and is sur United States National Bank, officers elected are: V ice president, vived by his wife and one daughter, Omaha. Later meetings will be held Charles Arnot, Scribner State Bank ; Dorothy Frances, a student at at Chadron and Alliance. secretary, P. A. Peterson, First Na Brownell Hall. Mr. Lord has al tional Bank, Columbus. ways been an active club man, being The meeting was very successful a member of the Omaha Club, Advertising the Archimedean Lever By William Allen White both in point of attendance and in Omaha Country Club, Omaha Advertising in the last twenty the work of the session. Speakers Athletic Club, Elks, Seymour Lake included E. D. W hite, special repre Country Club and also the Omaha years has changed the economic sentative of the Union Pacific Rail Chamber of Commerce. The fu status of at least one-fifth and prob road ; C. H. Gray, of Columbus, the neral was held from the family resi ably one-fourth of our people, rais retiring president, and several prom dence, the Rev. Father Lloyd Hol- ing them from a lower to a higher inent Nebraska bankers. sapple officiating. The floral trib standard, increasing their wants, utes were beautiful and numerous. and by increasing their wants, in creasing their ambitions and hence Consolidation At Madrid A host of friends mourn his loss. their capacities, and also their pur The Madrid Exchange Bank at chasing power. Advertising is the Madrid, Nebr., has taken over the Fine Meeting At Tecumseh. Archimedean lever that is moving interests of the Farmers Home Bank The Johnson County Bankers A s of Madrid and consolidated the two sociation, Johnson County, Nebras the world. banks. The Madrid Exchange Bank ka, held its semi-annual meeting re May Increase Hanover Stock is the oldest bank in Perkins coun cently in Tecumseh, in the Commu ty, organized in 1888. Directors of the Hanover Nation nity Club rooms in that city. Those The officers and directors of the nresent heard some very fine talks al Bank of New York announced re Madrid Exchange Bank since con by A. P. Fitzsimmons, former treas cently that a meeting of sharehold solidation remain the same as be urer of the Philippine Islands, and ers had been called for June 6th for fore: F. M. Bourquin, president; Hon. A. C. Shallenberger, of Alma, the purpose of increasing the capital Grace Smith Kellams, vice presi former governor of the state. W . B. stock from $3,000,000 to $5,000,000 dent; A. L. Bourquin, cashier. Capi Ryons, cashier of the First National and effecting this increase by a tal stock and surplus are $30,000. Bank of Lincoln, gave a talk on pres stock dividend amounting to $2,000,Resources are over $300,000. ent day problems. President Frank 000 or 66-]^ per cent out of undi Dafoe of the county association pre vided profits. Recent statements of Life is more like wrestling than sided. the bank show that the surplus and dancing; it must be ready to keep its During the day’s session, wives of undivided profits account amounts feet against all onsets, however un the visiting bankers were entertained to more than $22,000,000 over the expected.— Marcus Aurelius. by wives of the Tecumseh bankers. present capital. C. B. Betts Elected Cashier A t a recent meeting' of the stock holders of the First National Bank of W innebago, Nebraska, C. B. Betts was elected cashier of the in stitution. Mr. Betts was formerly assistant cashier. Other officers of the First National are: President, A. E. W iltse; vice president, S. E. M or gan. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE N O R TH W E STE R N BANKER A Public Institution — devoted to the development and prosperity of the Great Central W est and the interests of those who live in it. THE OMAHA NATIONAL BANK and THE OMAHA TRUST CO. OM AHA, N E BRASK A Capital, Surplus and Profits $3,000,000 WALTER W. HEAD, President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, june, 1922 TH E N O R T H W E S T E R N B A N K E R Will Have New Home The Tecumseh Building & Loan Association of Tecumseh, Nebraska, has purchased a two-story brick building in that city which will be converted into a modern banking building. An entire new front will be installed and all fixtures replaced by new ones. Officers of the asso ciation a re : P. A. Brundage, presi d en t; E. C. Hedrick, vice president; J. B. Douglas, secretary; Harry Phelps, treasurer. This company has deposits of over $300,000 and is making a steady and conservative growth. It has paid an average dividend of 8 p2 per cent since its organization eighteen years ago. The building and loan business in Nebraska is un der such strict supervision that there has not been a failure in that state in the past thirty years. S A F E T Y — P lu s We solicit your business on our record. The United States National Bank OMAHA Buy Interests at Marquette A deal has been consummated at Marquette, Nebraska, whereby the stock in the Farmers State Bank held by Henry Smith and John Ben son has been purchased by Albert W . Jensen, Claude W . May, Lars C. Larsen and C. S. Brown. Mr. Jen sen will become president of the Farmers State and Mr. Brown, who is also vice president of the Fidelity State Bank of Aurora, will become vice president of the Marquette in stitution. Mr. May becomes cashier. Former officers of the Farmers .State were : Henry Smith, president; John Benson, vice president ; Albert W . Jensen, cashier; Claude W . May, assistant cashier. The bank is capitalized at $15,000 and has deposits of $ 120 ,000. Decrease In State Bank Reserves I Average reserves in the 978 N e braska state banks dropped 1 per cent from December to March, and deposits fell off from $227,137,206.67 to $216,477,663.98, according to the abstract of the quarterly report of the condition of state banks on March 16th, made public by Secre tary J. E. Hart of the state depart ment of trade and commerce. The average reserve is 21 per cent against the legal requirement of 21 per cent, Hart says. There were 573,396 depositors in state banks. The bank guaranty fund during the quarter fell from $2,193,328.40 to $1,990,217.97. Undivided profits increased from 86,484,820 to $8,809,422. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of interest on live stock collections if the Live Stock National Bank is your Omaha correspondent Live Stock National Bank UNION STOCK YARDS OMAHA WALTER H. RHODES Confidential Bank Broker B A N K S and B A N K STOCKS O M A H A 147 148 THE Over Fifty Years of Service The Merchants National Bank BANKER OM AH A , NEBR. of Nationalized 1882 Capital, Surplus and Undivided Profits $2,000,000.00 STATEMENT Celebrates Fiftieth Anniversary Omaha Deposits Exceed Loans Deposits exceeded the loans in Omaha banks for the month ending May 5th, by $27,336,168. Despite the fact that the deposits were $7,931,671 lower than those of the last call, March 10th, the de crease was expected by the bankers. This difference was brought about by the liquidation of many of the obligations which the banks held as a result of marketing grain and live stock during February. Most of the loans in existence now have been extended. The loans as shown by the last call amounted to $76,870,570 as com pared with $79,754,229, as compared with the previous period, making a difference of $2,883,659. At the annual dinner of the Oma ha, Nebraska, chapter of the Am er ican Institute of Banking the fol lowing were added to the board of governors, which is the executive body of the organization: A. L. Coad, Packers National Bank; J. Kessler Jones, Federal Re serve B ank; C. L. Owen, Stock Yards National Bank; R. R. Rainey, United States National Bank; Miss Mary P. Doyle, Omaha National Bank. Edward Huwaldt, retiring presi dent, presided. The principal speak er of the evening was Guy C. Kiddoo, vice president of the Omaha Trust Company. At a later meeting, the board of governors elected the following offi cers : President, J. Kessler Jones, Federal Reserve Bank; Charles Mead, Omaha Trust Company, vice president; A. L. Coad, Packers Na tional Bank, treasurer; Mary P. Doyle, Omaha National Bank, secre tary. A t the Close of Business May 5, ’22 RESOURCES Loans and Discounts.—! 9,072,961.87 U. S. Bonds for Circu lation .......................... 50,000.00 Banking House ............ 101,942.14 U. S'. Bonds and Certifi cates ............................ 492,424.82 Other Bonds ................ 117,250.00 Cash and Due from Banks .......................... 4,341,213.00 Will Observe Summer Hours Omaha banks, members of the Omaha Clearing House Association, will observe summer hours begin ning June 1, through June, July and August. Banks will be open from 9 to 2 every day except Saturday, when the hours will be 9 to 12. Sav ings departments will remain open until 3 each afternoon. $14,175,791.83 LIABILITIES Capital Stock Paid in..$ 1,000,000.00 Surplus _______ 500,000.00 Undivided Profits ........ 499,971.44 National BankNotes.... 50,000.00 Deposits .......... 12,125,820.39 $14,175,791.83 O F F IC E R S F r e d P . H a m ilt o n , P r e s id e n t B . H . M eile, V ic e P re s id e n t O. T. E a s t m a n , V ic e P r e s id e n t S. S. K e n t, C a s h ie r H . D . B e n tle y , A s s is t a n t C a s h ie r B . B . W o o d , A s s is t a n t C a s h ie r J. P . L ee, A s s is t a n t C a s h ie r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 H. D. W ilson, president of the Ne braska City National Bank of Ne braska City, Nebraska, recently cel ebrated the fiftieth anniversary of his business career in that city. Mr. W ilson has been actively associated with the Nebraska City National since the death of his father, who founded the institution. Omaha Chapter Holds Dinner of Organized as State Bank Nebraska in 1870. N O R TH W E STE R N Anton Wolff At Raeville M. J. Ramaekers, formerly cashier of the Farmers State Bank of Rae ville, Nebraska, who committed for geries totalling about $60,000, has been arrested and committed to jail nt Albia, Nebraska, to await trial in district court. The stockholders have loyally agreed to make good the finan cial shortage of the bank, which has deposits in excess of $160,000. The state banking department has appointed C. H. Eckery of Lincoln, as their representative who is managing the affairs of the bank until its man agement is assumed by Anton W olff, formerly of West Point, Nebraska, and of Dayton, Minnesota. H. A. Schneider Elected President At a meeting of the directors of the Plattsmouth State Bank of Plattsmouth, Nebraska, Henry A. Schneider was elected president to succeed the late John Becker. Mr. Schneider has been cashier of the Plattsmouth State Bank for a p e riod of four years. The position of cashier was filled by the election to that office of Frank A. Cloidt, for merly assistant cashier. Other offi cers of the bank include: Henry Horn, vice president; Miss Bernese Newell, assistant cashier. At the same meeting Philip Thierolf was elected to the board of di rectors. The stock in the bank owned by Mr. Becker has been purchased by Mr. Schneider and Mr. Cloidt. COST ACCOUNTING (Continued from page 37.) any further calculations in order to obtain greater accuracy by a more careful apportioning of income and expense items. In other words, it gives a fairly good working knowl edge to the bank officer and places him in a position to pursue the idea to almost any reasonable extent, merely by a further sub-division of the items segregated. It is generally admitted that the average figures are more reliable on the whole for a cost analysis, because they give the average costs ; actual figures would give actual costs, which would vary from month to month and be sub ject to constant revision. O f course, there is an irreducible minimum and no account should be taken (theoretically) that is so small as to leave a loss on a year average. In other words, a checking account that averages $100 for one year will earn a gross profit of $3.30, and con sequently a side calculation must be made to allow for the immediate out lay during the period covered. A June, 1922 THE passbook has been given the cus tomer, which costs so much per book, and a check book has been given, which costs so much more. If the cost of these two things ex ceeds $3.30 for a year, you have ac tually lost money on the account. Again, you can readily see that familiarity with the method of analy zing shown above will open a furth er field of thought, limited only by the matter of detail. Some banks keep all of these items segregated in such a way as to tell exactly what the account is worth. If a close analysis is desired, at least, it can be easily worked out. The term “ Average Balance” comes into this idea because it is necessary to figure the average bal ance of an account over a given period of time, in order to use the percentage figures. Every account can be averaged by taking the daily balance from the ledger, or the state ment sheet, and placing it on a card The addition of these figures for a month will give the average if di vided by thirty days. Probably you would rather not keep such a de tailed card index, but would prefer to analyze an account in order to ascertain the average balance at the particular time that a customer is asking for something and suggests the value of the account to you. In this case, no average balance cards need be kept as the bookkeeper can easily give you the average for as long a period as you desire. Then make your calculations on that basis. Experience has shown that an an alysis of an account gives informa tion that places you in a position to tell your customer “ N o,” and at the same time convince him that his ac count does not justify the request. T w o or three experiences of this kind, with consequent increased balance and a more profitable ac count, will convince you that it is worth the time and trouble to check up occasionally on the customer. Human psychology enters into the discussion. Some customers will leave you no matter what your argu ments may be. They will not un derstand you. This state of mind cannot be avoided, but is it not bet ter to lose a profitless account rather than maintain it because of the un reasonable attitude of an individual depositor? It is true that he may tell others about the treatment re ceived, and the collateral influence will do your bank some harm. The only answer is that all education and enlightenment is a slow process, but invariably and ultimately it works for the benefit of all. It is the basis of human progress, public education, and is the corner-stone of our form of government. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N O R TH W E STE R N BANKER 149 Packers N ational Bank Union Stock Yards OMAHA 31 Years of Successful Banking John F. Coad, President W illiam J. Coad, Vice-President H. C. N icholson , Vice-Pres. and Cashier A. L. Coad, Assistant Cashier A mos G ates , Assistant Cashier I. L. A d am s , Assistant Cashier H. E. R a in e y , Auditor A n Efficient, Proven Service for Banks Long Established During a period of more than forty years this House has provided efficient service for banks. 1 Private Wire System Our offices are all in direct charge of partners or our own managers. The close co-ordination of our facilities is fully maintained by our private wire system. Foreign Connections Our foreign department is in direct, con stant communication with our corres pondents in London, Paris, Amsterdam, Antwerp, Brussels, Buenos Ayres and other foreign markets. Investment Service W e carry a line of investment securities, carefully selected to meet the require ments of individual and institutional buyers, which includes foreign and U. S. Government, municipal, railroad, public utility and industrial issues. Our list will be sent on request. Established 1880 •Paine, Uehber Sc (Enmjiatuj Bond Department BOSTON â NEW YORK Chicago Office, The Rookery Building CHICAGO I 150 THE N O R TH W E STE R N BANKER June, 1922 O N T H E GROUNDS A N D A C T IV E In the financial business as well as any other business, he who is on the ground is most powerful and quickest to reap the benefits of existing conditions. Our location in the center of the stock yards and our long experience with the requirements of tributary banks has enabled us to develop the most efficient service. All who deal in the great live stock industry or who have collections to make on live stock credits, can appreciate the exceptional service which is rendered. Our influence does not extend only over the Union Stock Yards but over Omaha in general; and any business entrusted to our care will be handled with promptness and dispatch. STO C K YARDS N A T IO N A L BANK of “ T h e O n ly B a n k in th e U n ion S to c k Y a r d s ” SOUTH O M A H A The Chase National Bank of the City of New York 57 Broadway C A P I T A L .................................................................................... ? 20,000,000 S U R P L U S A N D P R O F I T S .............................................. 21,840,000 D E P O S IT S (M a y 5, 1 9 2 2 ) ........................... ................... 4 0 1 ,026,000 O F F IC E R S A L B E R T H . W IG G IN P r e s id e n t V ic e P r e sid e n ts H E N R Y O L L E S H E IM E R SA M U E L H. M IL L E R A L F R E D C. A N D R E W S C A R L J. S C H M ID L A P P G E R H A R D M. D A H L R O B E R T I. B A R R R EE V E SCHLEY S H E R R I L L S M IT H A s s is t a n t V ic e P re sid e n ts E D W IN A . L E E A L F R E D W . HUDSON W IL L IA M E. P U R D Y GEORGE HADDEN GEORGE H. SAYLO R M. H A D D E N H O W E L L JA M E S L. M L L E R Comptroller C a s h ie r TH O M A S R IT C H IE W IL L IA M P. H O LLY D IR E C T O R S F R E D E R IC K H. E C K E R H E N R Y W . CANNON EU G EN E V. R. T H A Y E R A L B E R T H. W IG G IN C A R L J. S C H M ID L A P P J O H N J. M I T C H E L L G E R H A R D M. D A H L GU Y E. T R IP P ANDREW FLETCHER J A M E S N. H I L L W M . B O YC E TH OM PSO N D A N I E L C. J A C K L I N G R E E V E SCHLEY C H A R LE S M. SCH W A B K E N N ETH F. W OOD S A M U E L H. M IL L E R H . W E N D E L L E N D IC O T T E D W A R D R. T IN K E R W IL L IA M M. W O O D E D W A R D T . N IC H O L S J E R E M IA H M IL B A N K NEW COM B CARLTON H E N R Y O L L E S H E IM E R W E RECEIVE ACCOUNTS OP BANKS, Bankers, Corporations, Firms or Individuals on favorable terms, and shall be pleased to meet or cor respond with those who contemplate making changes or opening new Through its Trust Department, the Bank offers facilities as: Trustee under Corporate Mortgages and Indentures of Trust; Depositary under reorganization and other agreements; Custodian of securities and Fiscal Agent for Corporations and Individuals: Executor under Wills and Trustee under Testamentary Trusts; Trustee under Life Trusts. F O R E IG N https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis EXCHANGE DEPARTMENT Y our Custom ers’ C o n f id e n c e in the service of your bank and the wisdom of your advice will be increased if you offer them A B A American Bankers Association Cheques FOR T R A V E L E R S These universally accepted cheques have traveled the wide world over and have won for themselves a ready welcome whenever and wherever presented. They are sold in denominations of $10, $20, $50, and $100. Safe, convenient, easy to carry. F o r lite r a tu re a n d in fo rm a tio n w r ite to bankers tr u st c o m p a n y New York City June, 1922 THE N OR TH W E STE R N 151 BANKER College and Marriage Figures from college registers have been adduced to show that the col lege girl has not much more than an even chance of marriage and that if she does marry the chances are that she will have only one child. Even of men’s colleges Dr. Ricker of the United States Public Health Service says that the proportion of graduates who fail to become founders of families is increasing. Just what does this prove? In the first place, to make out a case against higher education the records would need to be compared with records for some large group of men and women who have not gone to college, but who belong to the same social and intellectual scale as those who have. It would be difficult to select the group and difficult to obtain its life histories. In the second place, if such a comparison does show that col lege graduates are not doing their share for the continuation of the race, it might be asserted that the trouble with the colleges is not that they are educational, hut that they are not co educational. Keeping young men and young women apart from each other the most of the time from the age of eighteen to the age of twentytwo, will impede the process of match making— no matter whether the oc cupation the young people are en gaged in be the pursuit of learning or something else. It will also, in all probability, postpone the time of mar riage for those who do marry, and thus lessen the chance of their having a proper number of children. Already most of the important pro fessional schools in the East are co educational. Even the University of Virginia has this year thrown open to women all departments but the undergraduate. At Cambridge the Radcliffe seniors may attend special graduate classes with the men. At the other end of the scale we find that the best new primary and secondary schools, such as the Lincoln and the Scarborough— schools which are heavily endowed and can set fashions instead of following them— are most commonly peopled not with “ boys” or “ girls,” but with “ children.” Co-edu cation in the schoolroom may be re garded both as a thing good in itself and as a happy precursor of co-edu cation at college.— New York Even ing Post. The law of worthy life is funda mentally the law of strife.— Theo dore Roosevelt. W hat Your Advertising Should Say to the Prospect ONES has just bought a new house, or Smith a new car, and you know it when you meet him in the bank. Do you then greet him with a cheery lot of talk about the new banking equipment you have just purchased or do you ask first about h is latest acquisition and lead him later into your own interests as they come in contact with his ? J W hen you advertise you simply greet, by means of the printed word, a hundred or a thousand The problem is to know the people in place of the one you group and to know how to make could have greeted personally. your approach to that group as But you should not greet them intimate and friendly as would be any differently, except the your approach to one individual. medium you use requires a dif This is the science of advertising, ference. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis as and it is in doing this that The The same simplicity, the same Collins Service makes your adver principles should apply, and not tising in its bigger, broader way too much shop talk, until the in as forceful and effective in secur terview is under way, but rather ing friends and getting new busi an approach to all the people ness as is your personal approach. The nace The R ecog n ized Financial A dvertising Philáctej ¡á, Pa. THE OLD LINE C E D A R R A P 11 L IF E IN S U R A IM G General Agency Chances Open in Four Western States A Good chance for Bankers with Ability of Management CJ3.Rahbins. If thou desire to be held wise, be so wise as to hold thy tongue.— Quarles. upon a subject in which you know they are all interested. Ores CJ5. SooJboda, HOME OFFICE :C E D A R Secy. R A P ID S . IOWA THE 00ED5do ÜJJÜO10H i»m m m mm LÌODI'LIO IilIDJU oo unoo JU'OÖÜÜD BBC! OD jOGBODg ngrroìli IñgnnDD N OR TH W E STE R N BANKER (M inneapolis and the North oo m havebeen Iiìor Dì m working'partners mih ihe FIRST NATIONAL BANIN 'Æ s s ¿ The p r et en t home o f the Firtt National Bank, Marquette a n d % Fifth. fo r J 3 y i A TIN G back to 1864 T H E FIR ST N A T IO N A L B AN K made its start in humble quarters on First Street and Hennepin Avenue When this pioneer bank first opened its doors to the public it had but a few employees, and the initial capitalization was $50,000 serving a town of about 15,000 people. 'O D A Y located in their own 18-story building, with a Capital and Surplus of $10,000,000.00, they render a complete financial and banking service. » Y serving the public zealously since its inception, and supporting 'worthy commercial and industrial enterprises, it now stands as T H E F IN A N C IA L L E A D E R OF T H E G R E A T N O R T H WEST. Keeping pace with the growth of Minneapolis and the Northwest, T H E FIRST N A T IO N A L BAN K has now over 400 employees and over 40,000 customers, which attests the confi dence of the community in the management and policies. [ A V IN G served the public for 58 YEARS this institution has been left rich in experience, enabling it to offer dependable counsel re garding financial problems. YOU A R E IN V IT E D TO USE TH IS IN V A L U A B L E EXPE R IE N CE F ir s t N a t io n a l B a n k M IN N EA POLIS V /" The stockholders 0f the First National Bank and Minneapolis Trust Company are identical https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 June, 1922 T HE NO R TH W E S T E R N 153 BANKE R M IN N E S O T A B A N K N E W S Eighth Group to Meet At Biwabik L. L. D. Stark Heads Institute The annual meeting of the Eighth District Group of the Minnesota Bankers Association will be held June 3 at the Eshquaguma Country Club at Biwabik. The business ses sions are scheduled to start at 3 :30 p. m. and the Range Bankers A sso ciation will be hosts to bankers and their wives at a dinner in the even ing at the club. Several speakers of prominence are to appear on the p ro gram. The Eshquaguma Club is one of the most beautiful clubs in the state and a fine day’s outing is being planned for the delegates. At the annual election of Minne apolis Chapter, American Institute of Banking, the following officers and members of the Executive Com mittee were elected: President, L. L. D. Stark, of the Midland National Bank; vice president, L. A. Dyregrov, of the First National Bank; recording secretary, R. O. Thayer, of the Northwestern National Bank; corresponding secretary, C. A. Peter son, of the Union State Bank; treas urer, Theodore Haas, of the M etro politan National Bank; executive Gives Public School Lectures The officers of the First National Bank of Biwabik, Minnesota, have just completed a series of lectures on banking in the high school and upper grades of Biwabik. Those participating in the lectures included J. C. McGivern, president; A. B. Stark, cashier, and D. L. Torresani, assistant cashier. First National, Duluth The First National Bank of Du luth, Minnesota, capitalized at $1,000,000, has a surplus of $1,500,000 and undivided profits of $1,500,000, according to a recent statement. O f ficers of this institution a re : Presi dent, Albert L. Ordean ; vice presi dents, David Williams, Joe H. Ingwersen and W alter J. Johnson ; cash ier, W illiam W . W ells; assistant cashiers, W illis A. Putnam and Hen ry E. Grieser; vice president and trust officer, John H. Dight. L . L . D. S T A R K committee, William A. Kramer, of the Farmers & Mechanics Savings Benson Banker Dead. Bank, and Harry H. Sivright, of the Frank L. Stone, president of the Lincoln National Bank. Mr. Stark has been active in Chap Swift County Bank at Benson, Min nesota, and identified with a num ter work for many years and during ber of Northwest interests, died re the past two years has served suc cessively as recording secretary and cently at his home in Benson. A member of the Minneapolis and vice president. He has served on Minikahda clubs, he was well known practically all standing committees and during this year served as chair in the Twin Cities. man of the newly-organized Bank ers Forum of Minneapolis, which Joins Bank Staff held its first meeting in March. Mr. G. G. Cowie, who has been sta Stark is in charge of the Publicity tistical expert for the Board of Edu Department of the Midland Nation cation for the past three years, has al Bank of Minneapolis. The Minneapolis Chapter, Am eri joined the staff of the Farmers and Mechanics Savings Bank of Minne can Institute of Banking, today has a membership of over 1,000 local apolis. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis bank men. This membership is made up of bank officers, staff members and directors of local banks, trust companies and bond and investment houses. The object of the Institute is to provide a means whereby the bank man may study courses in banking, finance, economics, accounting, or ganization, credits, etc., through the Extension Division of the Univer sity of Minnesota. In addition to the educational advantages, the In stitute offers an agency through which the bank man can express his ability as an executive and an or ganizer. Through the many com mittees organized to care for the manifold activities the bank man is taught the importance of team work and thus is able to develop the qual ities of initiative and tact. W hile the large percentage of the Institute membership consists of employees of local Institutions, the officers take an active part in fur thering its constructive program. The idea of the American Institute of Banking was first conceived by Joseph Chapman, now vice pres ident of L. S. Donaldson Company, in 1898. From a small beginning the Institute has extended its activities to other cities and the present na tional membership is about 45,000 members. The Minneapolis chapter enjoys the reputation of being one of the largest and most progressive of the entire organization. Becomes Bank Examiner J. E. Drager has resigned as vice president of the Farmers National Bank of Red Lake Falls, Minn., to become special bank examiner in the Minnesota banking department. Fie is succeeded at Red Lake Falls by M. Id. Latendresse, cashier, who is now in charge of the bank. Gets Legion Appointment H. E. Bottelson, assistant cashier of the First National Bank of Blackduck, Minnesota, has been appointed service officer of the American Le gion post of that city. The work of which he will be in charge will have to do with caring for disabled vet erans through the channels of the Veterans Bureau. THE N O R TH W E STE R N BANKER June, 1922 A RECORD OF PROGRESS HIS year marks the beginning of our f o u r t e e n t h year of successful business. At the time of organization in May, 1909, our capital amounted to $250,000.00 and total resources less than $1,000,000.00. Today we have: T Capital $ 1 ,0 0 0 ,0 0 0 .0 0 Surplus & Profits $ 6 5 0 ,0 0 0 .0 0 Resources $ 1 6 ,0 0 0 ,0 0 0 .0 0 Through our completely equipped departments—Commercial, Trust, Savings, Safe Deposit, and Foreign— we render a broad service to bankers. Nearly 600 banks have found us a serviceable Twin City correspondent. W e solicit your business on the basis of efficient, agreeable and helpful service. « Charles B. Mills President Edgar L. Mattson V ic e President Elmer V . Bloomquist Secretary W alton R . Murray Andreas Ueland 'Vice ‘President Counsel Trygve Oas Victor E. Hanson Cashier Jerome H . Sharpe Assistant Cashier Assistant^Cashier Cecil L. Keith Harry D . Davis Assistant Cashier Assistant Cashier MIDLAND N A T IO N A L BANK M IN N E A P O L IS iTamv. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -¡fsasaXr June, 1922 THE N O R TH W E STE R N 155 BANKER Buys Bank Building Directors of the Farmers State Bank of Bemidji, Minn., have pur chased the building which the bank has been leasing since 1919. The building was remodeled at the time of leasing and is very modern in its features. The Farmers State was organized in 1917. Officers are: J. L eR oy Elwell, president; H. R. Gillette, vice president; Edw. Paulson, vice pres ident; B. L. Johnson, cashier. Daily Radio Service On April 27th this company inaugurated an investment service via wireless at 10 A. M. and 4 P. M. daily. This service, which covers a radius of 350 miles, includes general invest ment news and market quotations. This institution has long maintained private and leased wire service to all important financial centers. It is proud to add to its service the wireless, by means of which a still better and more comprehensive service can be rendered the public. Midland National, Minneapolis Total resources and liabilities of the Midland National Bank of Min neapolis are $16,655,501.49, accord ing to a recent statement of con di tion. Deposits total $14,331,159.94. T he M in n eso ta Lo an and Trust Company ‘y l^ Ji/ia te ct w it/i'it/iejl/o rt/u tiestevn J]/a tio n a l¡¿ja n te Minneapolis Adds to Banking Space Greatly enlarged banking space is the outstanding feature of the many improvements recently made in the building of the Central Trust & Sav ings Bank at 5th and Cedar streets, Minneapolis. A new safety vault, as nearly fire and burglar proof as pos sible, has been installed, together with six individual coupon booths for the use of customers. A new di rectors’ room and modern fixtures have also been added. Burglar Alarm System s Guaranteed Electric BUILT BY The American Bank Protection Company, Inc. CAPITAL $150,000.00 Joins Clearing House Association The Duluth National Bank of D u luth, Minnesota, has been elected a member of the Duluth Clearing House Association. The Duluth N a tional was formerly the Duluth State and received its national charter a few weeks ago. Is Elected Club President S. T. Throbeck, cashier of the South Side State Bank of Minne apolis, has been elected president of the South Side Commercial Club for the ensuing year. New Land Bank Gets Charter Robert W . W ebb, president of the Minneapolis Trust Company of Min neapolis, has been advised that a charter has been granted by the fed eral farm loan board at W ashington to the Minneapolis Trust Joint Stock Land Bank which has its quarters in the Minneapolis Trust Company offices. The capital of the bank is to be $250,000 and surplus, $25,000. Officers of the institution a re : Chairman of the board, E. C. C ooke; president, Robert W . W e b b ; vice president, C. T. Jaffray; vice president and treasurer, E. J. Grimes; secretary, A. O. Dieson. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Minneapolis - Minnesota Are reconized by all Bonding Companies— Write for particulars. DO IT NOW. We also build Safety Deposit Boxes, Vault Omnibuses, Steel Filing Devices. 156 THE N O R TH W E STE R N BANKER Organize Ballard and Company Rollin B. Ballard and Homer D. Ballard have organized Ballard and Company of Minneapolis, Min nesota, dealers in investment securi ties. They have incorporated this pany after a service of about eight years, with the exception of eigh teen months in the army. This company will specialize in the purchase and sale of municipal June, 1922 Richfield National Opens Doors The Richfield National Bank of Minneapolis has opened for business at Fifty-fourth street and Nicollet avenue, with a capital stock of $25,000 and surplus of $6,000. Officers are: President, John W . Black; vice president, A. H. Nieter; cashier, A. Erederickson. Directors, in ad dition to Mr. Black and Mr. Nieter include: John B. Irwin, Jacob Andreson and August Cedarstrand. Observes Fifth Anniversary The Federal Land Bank of St. Paul recently observed its fifth anni versary. During the five years of its existence this institution has issued more than $61,000,000 in farm mort gage loans to farmers throughout the Northwest. It now has assets of $69,000,000 and $3,315,535 capital stock. Bonds issued total $61,573.475. Undivided profits are $376,000. St. Paul Director Dies ROLLIN B. BApLARD HOMER D. BALLARD company with an authorized capital of $1,000,000 and have taken offices in the Metropolitan Bank Building. Both men were formerly offi cers of the Drake-Ballard Company. Mr. Rollin B. Ballard retired as vice president of that company after being in the management for over thirty years and Mr. Homer D. Bal lard retired as secretary of that com bonds. They will also handle cor porate, railroad and public utility bonds. They have offices in St. Paul and Des M oines; Minneapolis being their principal place of busi ness. Both are also affiliated with Ballard-Hassett Company, a bond house with offices at 303 Security Building, Des Moines, Iowa. N. C. Johnson, a director in the Central Metropolitan Bank of St. Paul, a director in the Central Trust & Savings Bank, and treasurer of the Citizens Ice & Fuel Company, died recently following thirty-five years’ residence in St. Paul. Security State Being Organized The Security State Bank of Minne apolis, at Nicollet avenue and Elev enth street is being organized with G. F. Kirscher as president, and C. W. Dixon, vice president. The new in stitution will have capital of $100,000 and a paid-in surplus of $20,000. Mr. Kirscher has had many years of banking experience, with the Mer chants State Bank of Little Falls, Minnesota, and the State Bank of Madison, Wisconsin. Fourth Birthday Is Observed The Lincoln National Bank of Minneapolis celebrated its fourth an niversary recently. The bank, when first organized, occupied quarters at Ninth and Hennepin, but now oc cupies its own building at Eighth and Hennepin, having deposits in excess of $4,000,000. Absorbs Mill City State The Minneapolis National Bank, Nicollet avenue and Lake street, has absorbed the Mill City State Bank, 20 W est Lake street, which recently was closed by R. B. Rathbun, state bank examiner. The absorption in cluded all assets and liabilities of the Mill City institution and all depos itors or creditors of the bank can now claim their deposits or accounts from the Minneapolis National Bank if desired. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, THE 1922 Plan $125,000 Bank Building Construction of a $125,000 bank building at Emerson avenue north and W est Broadway as part of a quarter million dollar construction program on W est Broadway has been announced by W . H. Dahn, president of the North Side State Bank of Minneapolis. Building plans will soon be made and construction started in a short time. Convention Plans Well Under Way Plans for the entertainment of Min nesota bankers who will attend the state convention at St. Paul June 2021, are well under way, although no set program has been announced up to the time this goes to press. The first day of the meeting will include an address by Governor Preus of Minne sota, followed by Congressman L. T. McFadden of Pennsylvania, chairman of the Committee on Banking and Cur rency. In the afternoon Walter W. Head, vice president of the Omaha National Bank of Omaha and also vice president of the A. B. A. will talk on general conditions and the Federal Reserve system. Attorney General F. S. Dickson, of Illinois will complete the program of the first day with an address on “ Business Men’s Duty.” N OR TH W E STE R N 157 BANKER The morning of June 21 will be en tirely devoted to the affairs of the State Association. James L. Mitchell, of the Capital National Bank, St. Paul, is chairman of the Entertain ment Committee and promises a vari ety of entertainment features fully up to the usual splendid standard of the Minnesota association. Bargain Day Big Success The Rock County Bank, of Luverne, Minnesota, whose unique sav ings campaign was the basis of an ex tended article in the last issue of the Northwestern Banker, has tried an other method of building up accounts that proved successful. Recently the merchants of Luverne organized for a “ Bargain Day,” each business place offering certain articles at reduced prices. The Rock County Bank, in keeping with the spirit of the day, offered to date new savings accounts back three months with interest at the regular rate and all savings deposits made on that particular day were dated back two months. The idea resulted in in creasing the deposits of the bank $1200. “ O f course this might not be the most profitable way to increase our savings accounts,” writes Paul K. Myers, assistant cashier of the bank, “ but it brought us new customers as well as living up to the spirit of the day. W e plan to have these bargain days once each month and I might say that it proved so successful that it brought people to town to do their trading who ordinarily would go to neighboring towns/’ New Bank for Phalen Park Application for a charter for the Phalen Park State Bank, of St. Paul, has been filed with the Minnesota securities commission. The pro posed institution will have a capital of $25,000. Incorporators are Elmer C. Turnquist, E. W . Ostergren, Oscar Laforth, Gustave Clang and Richard E. Hedman of St. Paul and A. L. Hepburn of Minneapolis. M. Roy Knauft to Tour Europe M. Roy Knauft, of the Capitol Na tional Bank of St. Paul, sailed from New York in the early part of May for the purpose of an extended busi ness tour in the principal cities of Europe. He will make a visit in England prior to travel on the con tinent. Econom ical “ S a fe ty ” Mailers THEFT PROOF— FOOL PROOF— EASILY SIMPLY SEALED PACKED— For m a i l i n g Stocks, B o n d s , Currency and o t h e r valuable matter. The seams are entirely covered by the heavilygummed flap when ready for mailing, while the “tuck in” flap gives full protec tion to contents upon cutting open at destination. Only two wax seals are required and the extra wide side seams having safety folds at each lower corner, permits the mailer to be packed to full capacity, eliminating all possibility of breaking open. THE ASSURANCE OF S A F E T Y INSURANCE. IS THE BEST M A D E IN K R A F T A N D L E A T H E R O I D W e Make a Compl ete Li ne of BANKERS’ ENVELOPES American investors are becoming increasingly interested in the buy ing and selling of Canadian internal securities. During the past six months Canadian stock brokers probably handled more American business of this kind than ever before. American bankers who are called upon to collect “security” drafts on Canadian brokerage houses, can save money for themselves and their customers, by routing these drafts through the Foreign Ex change Department of this bank. Close rates for Canadianexchange will enable them to obtain the largest possible number of American dollars for their Canadian funds. A Canadian Bank for Canadian Business A s k f or Sampl es and Prices Northwestern !Paper Goods Co. Midway Quality Park Exchange and Your Canadian Security Drafts St. Paul, Minn. Union Bank of Canada New Y o rk A gency, 4 9 W a ll Street Resources Over S I52,000,000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 158 THE 2 N O R TH W E STE R N BANKER June, 1922 SECURITIES ID E distribu WOtorsR LofD -W high-grade securi ties: Bonds, Short Term Notes and Acceptances. C o rre sp o n dent Offices in more than 50 leading cities. Bankers of this section are invited to use National City Company service through one of our following conveniently located correspondent offices. Polaralite Signs dignified, yet striking H E signs in a banking room present a distinct problem. Like all signs, their primary purpose is to attract atten tion. But at the same time they must ex press the dignity and solidity of the insti tution. T oo often one or both of these considerations suffer. With the Frink Polaralite signs, however, both are achieved in a high degree. The frame is designed to harmonize with the architectural motif. The letters, deeply sand-blasted on a heavy sheet of plate glass, are so illuminated from an invisible source that they stand out in brilliant relief against a dead ground. The effect is beautiful and attentioncompelling. The sign consumes but little current, and has nothing to deteriorate or wear out. The examples shown are merely sugges tions. There is practically no limit to the designs that can be carried out in these signs. W rite for our special Bank Cata log, which describes T Polaralite Screens Screen Reflectors Desk Reflectors Upward Diffusers CHICAGO, DAVENPORT, IA. MINNEAPOLIS, ST. PAUL, OMAHA ST. LOUIS, KANSAS CITY, KAN. l T Ï C onstructive Criticisms — and suggestions are always welcome in our office. The Northwestern Banker is your maga zine and its main business is to please you. If you can suggest improvements in our magazine policy we LP FRINK, In c shall feel deeply in debted. 24th Street and 10th Avenue, New York C h ic a g o , I I I . M o n a d n o c k B ld g . B o s t o n ,, M a s s . 161 S u m m e r St. D e t r o it , M i c h . S ta te St. S a x F r a n c is c o , C a l . P h i l a d e l p h i a , P a . 77 O 'F a r r e ll S treet F r a n k lin T r u s t B ld g . C l e v e l a n d , O. C i n c i n n a t i , O. 17 G r e e n w o o d B ld g . 33 6 T h e A r c a d e L o u is v il l e , K y . Sea ttle, W a s h . 609 S e a b o a r d B ld g . 415 W . M a in S tr e e t ¿RÍE—t»1—-jg»1- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Northwestern Banker Des Moines Iowa June, THE 1922 N ORTH W ESTERN 159 BANKER NORTH DAKOTA BANK NEWS Northern National In New Building The Northern National Bank of Fargo, North Dakota, recently re modeled, is now conducting busi ness in its modern banking quarters. The lobby has been doubled in size, and has a new tile floor. The grill work in the cages is bronze and the furniture and fixtures are of mahog any. Some of the features of the remod eled building are a new drinking fountain, two private booths for cus tomers near the safety deposit vault, and marble seats in the lobby. The officers of the Northern Na tional Bank a re : President, H. P. B eckw ith; vice president, B. I. Keat ing; vice president, H. J. R u sch ; cashier, A. O. Christensen; assistant cashier, W . H. Clemens. W ill M ove to Columbus The First State Bank of Larson, North Dakota, has made arrange ments to move to Columbus in a short time. This institution was purchased last fall by the Eckman interests. A. M. Eckman is chairman of the board and A. M. Olstad is cashier. State Bank Audit Completed A loss of $150,475.65 in the Bank of North Dakota during the two and one-half years it had been in exis tence up to December 21, 1921, was shown in the audit report of Bishop, Brissman Company, recently com pleted. The report declared that the bank would incur additional losses in the future in settlement of present busi ness. A considerable amount of the as sets. the report declared, would liquidate slowly and at a loss. “ Frozen credits” were estimated at over $2,000,000. The total footing of the bank was placed at $8,334,378 on December 21, 1921, the time F. W . Cathro re linquished control, follow ing change of administration. The bank had increased its busi ness until total resources were listed at over $25,000,000. The bank, when Mr. Cathro surrenderd control, the report said, was at its lowest ebb in its existence. Although the bank lost over $150,000, it made a profit of $74,924.07 in 1920. The loss in 1919 was $4,795.82 and in 1921 up to December 21st, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $220,603.89. All of the values were stated at face value in the report. This report completes a series of audits which the Bishop, Brissman Company was hired to make of the state industries following change of administration. Citizens State Liquidated W . H. Putnam, H. L. Moe and W . E. Robb, all directors in the Citizens State Bank of Arnegard, North Da kota, have purchased the First State Bank of W atford City, North Da kota. W . H. Putnam will be presi dent of the institution. Other offi cers are: H. L. Moe, vice president; W . E. Robb, cashier, and C. A. Bar rett, assistant cashier. The Citizens State Bank of Arnegard is being liquidated by merging the assets with the First State Bank of W atford City and the business will be con tinued under the name of the latter institution. Plans Are Made For Minot Convention By W. C. Macfadden Secretary N. D. B. A . O M M ITTE E S have been appoint ed for the Minot Convention, June 15-16, on Autos, Banquet, Annual Ball, Hotel, Entertainment and Visiting Ladies. William Smart, presi dent of the Minot City Commission, will deliver the address of welcome, and the response will be by Col. M. H. Sprague, of the First National Bank, of Grafton, vice president of our as sociation. There will be a picnic supper in the park on the evening of the 15th, and entertainment features during the a f ternoon of the 15th, including a golf tournament, for which the North Da kota Bankers Association will offer a cup. Following the picnic supper the annual ball will be held. There are two prominent speak ers for the convention this year. Douglas Malloch, of Chicago, who de livers a humorous, philosophical ad dress, and Dr. R. A. Beard, of the First Congregational Church of Fargo, who delivers a splendid address to business men, in which he tries to make it plain to them that they need more religion in their business and that the great need of the world today is more of the Christian religion. Out side of these two addresses, the con C vention this year will be of a strictly business character. A full half day, the forenoon of the 16th, will be de voted to a discussion from the floor of the convention of North Dakota bank problems, including the Guaranty of Deposits Law and the problem of tak ing care of depositors in closed banks. There are some problems peculiar to North Dakota in this connection, due to the recent Non-Partisan state ad ministration, and an effort will be made at this convention to solve these problems by a thorough discussion on the floor of the convention. Annual reports will be made during the first day by the president of the association, the chairman of the execu tive council, the secretary, the treasur er, and the standing committees as follows: on immigration, agriculture, community development, banking edu cation, and on legislation. The North Dakota Bankers Asso ciation Band of something like 50 pieces made up entirely of employes in banks belonging to the North Dakota Bankers Association, will be a big feature of the convention. The band is directed by Dr. C. S. Putnam, of Fargo, and is under the management of M. O. Grangaard, vice president of the First State Bank of Rogers, who for the past few months has been located in Minneapolis with the War Finance Corporation Board. E n te r t a in m e n t F e a tu r e s “ Minot bankers are expecting not less than 600 visitors at this conven tion,” says A. H. Kurth, cashier of the Citizens Bank of Minot. “ It is our intention to turn the city over to the visitors including the golf links, parks, swimming pool, tennis courts, in fact, everything that we possess here at Minot, for those two days. W e were unable to figure out where we could get a satisfactory place for a banquet inside so it is our intention to give them a basket lunch at the park per haps on the 15th, allowing them to en joy the sports and put on a dance in the evening. On account of the un certainty of the weather we are going to try and make arrangement for the armory that will be dancing inside and also employ the Wildwood Park Pa vilion for dancing outside ; this neces sitates our employing two orchestras, but we believe it is the only way to take care of the crowd, as people of the northwest don’t believe in beingcrowded.” 160 THE N O RTH W ESTERN BANKER June, 1922 PHILADELPHIA BANKING TRADITIONS HE city o f Philadelphia has been a leading financial center in the growth and development o f our coun try since the days o f Stephen Girard. T The Girard National Bank, tracing its origin back to that great merchant, patriot, and financier, has rendered an active banking service in this im portant com m ercial and indus trial center for ninety years. The Girard National Bank aims to serve the financial interests o f the n ation today as Stephen G irard served his national interests in 1812. W rite to us o f your problems. The G irard National Bank PHILADELPHIA This Historic Building, the oldest bank ing structure in the United States, was erected in 1795 and was originally the home o f Stephen Girard’s Bank. For the past 89 years it has been occupied by The Girard National Bank who are the immediate successors to the building and business o f the original bank o f Stephen Girard. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, THE 1922 N O RTH W ESTERN BANKER 161 M O N T A N A BANK NEW S A . T . H ib b a r d , A s s o c i a t e E d i t o r Montana Group Meetings Dates and locations of group meetings of bankers have been an nounced- by A. T . Hibbard, secre tary of the Montana Bankers A sso ciation. The opening date is May 29th and the closing date June 6th. The schedule is as fo llo w s: May 29th, Group 2 at Miles City. A. W . Raen, cashier of the W ibaux County Bank, W ibaux, is secretary. May 30th, Group 7, at Hunters H ot Springs. T. W . Marshall, cashier of Reed Point State Bank, Reed Point, is secretary. May 31st, Group 6 at Deer Lodge. The secretary of this group is A. J. Lochrie, cashier of the United States National Bank, Deer Lodge. June 1st, Group 3 at Missoula. A. A. Lessig, cashier of the First Na tional Bank at Charlo, is secretary. June 3d, Group 5 at Great Falls. N. B. Matthews, president of the Basin State Bank at Stanford, is secretary of this group. June 5th, Group 1 at Fort Benton. The secretary of this group is F. A. Flanagan, cashier of the Benton State Bank, Fort Benton. June 6th, Group 4 at W o lf Point. C. E. Hoppin, cashier of the Glas gow National Bank, Glasgow, is secretary. The group meetings will be pre liminary to the annual meeting of the Montana Bankers Association, which will be held in Missoula. The dates are August 18th and 19th. First State Re-Opens At Livingston W ith James E. Murray, Butte financier and attorney, as president, the First State Bank of Livingston, Montana, has been re-opened for business, after a complete reorgani zation since the bank was closed in October, 1921. Officers of the new organization are: President, James E. M urray; vice president and man ager, Alban Bodine; vice president, J. F. A lspau gh ; cashier, Carson E. Bechtel. The bank will have $150,000 capital. Deposits far in excess of expectations of the officers were made on the first day’s business and many new accounts were opened. Mr. Murray, the new president, is heavily interested in various busi ness enterprises in Montana. Mr. Bodine, vice president and manager, recently resigned as representative of W alter J. Hill, St. Paul financier. He has had a long banking expe https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (S e c r e ta r y M o n ta n a B a n k e r s rience. Mr. Bechtel, cashier, was connected with the old bank for a number of years. Glacier County State Opened The new Glacier County State Bank of Cut Bank, Mont., has been opened for business for some time. Incorporators and principal stock holders are: P. B. Hartley, vice president, Conrad Trust & Savings Bank; L. M. Lerberg, D evon; J. R. Stille, cashier, Cut Bank; and M. A. Lerberg, Devon. Officers a re: Pres ident, L. M. Lerberg; vice president, M. A. Lerberg; cashier, J. R. Stille. The new bank has a capital of $20,000 and surplus of $5,000. Cut Bank is a city of 1,500 population, a county seat and terminal point of the Great Northern. The Glacier County State Bank is the only bank in Cut Bank. Montana Bankers Attend Meeting Roy J. Covert, of the Merchants National Bank of Billings, and P. B. Hartley, vice president of the Con rad Trust & Savings Bank, were among the Montana bankers who at tended the meeting of the executive committee of the A. B. A. at White Sulphur Springs, West Virginia. P. G. Hughes Regains Health P. G. Hughes, cashier of the Stockmens Bank of Cascade, Montana, who sustained a bad injury from a pistol wound when Fred Maricoux shot him some time ago in an attempt to get money, has been released from the Great Falls hospital and is well on the road to recovery. Pioneer Banker Dead S. S. Hobson, pioneer Montana banker and one of the organizers of the Bank of Fergus County at Lewistown, died recently at Great Falls, Montana. Mr. Hobson came to Mon tana from Maine forty-two years ago and entered business in the Judith basin. He was owner of many live stock and farming interests in addi tion to his banking interests. He served for a time as president of the Fergus County bank. Plan Elaborate Hotel Plans for an elaborate addition to the hotel at Yellowstone lake in the Yellowstone National park have been announced by Harry W . Child, pres1.- A s s o c ia tio n ). dent of the Yellowstone Park Hotels Company. W ork on the addition will start June 1 and the building will be opened to the public on June 20, 1923, Plans call for 150 rooms, and the cost is estimated at $250,000. Responsibility of Directors Directors of a corporation who per mit the company to exceed in indebt edness the amount of capital of the concern, cannot be successfully sued to make good the debts, was the su preme court opinion at Helena, Mon tana, by Justice William L. Holloway, in affirming the Silver Bow county court in the case of the Continental Oil Company against the Montana Concrete Company. Gay Life of a Banker Yes, indeed! Bankers lead a carefree life, a life of ease and com fort. 1 am a banker. On Monday two of my customers went into bankruptcy, netting the bank a tidy loss. During the after noon I explained to the directors why I had loaned these customers the money with which to go bank rupt. Tuesday afternoon I took my weekly lesson, at the armory, in the fine art of shooting the bandit be fore the bandit had a chance to shoot me. I left convinced that n o where was a bandit safer than be fore my gun. W ednesday evening was given over to a lecture by a prominent criminologist on the most up-to date methods of bank swindlers. If left me with great confidence in such of my fellow men as have died. Thursday I attended the funeral of one of our messengers who had been shot while delivering a pay roll. His mother’s grief made my evening a sweet dream. On Friday I attended a dinner at which the principal speaker an nounced that only the bankers of America could work out the salva tion of Europe. I devoted Saturday to the filling out of my customer’s income tax re turns. Today is Sunday. This is a pleasant sanitarium. But. really, bankers do lead a care free life : a life of ease and comfort. — C. M. F. in Life. 162 THE N ORTH W ESTERN BANKER June, 1922 Im p ro v e Y o u r Q u a rte rs T HE e x p erien c e of th ou sa n d s o f b a n k s bears ou t th e fa ct th at an in v estm en t in m o re at tractiv e, m o re m o d e r n , m o r e efficient qu arters is on e o f th e sou n dest an d m o st p ro fita b le in v est m e n ts a b a n k can m a k e . In creased b u sin ess is th e reason . Q u estion any b a n k e r w h o lias m o d e rn ize d his b a n k in g h o m e and h e w ill te ll y o u h is b a n k ’s d ep o sits in creased su b stan tially . A C O M M U N IT Y A S S E T A n ew b a n k h o m e is alw ays a c o m m u n ity asset. C o n sid er th e im p re ssio n it w ill create. C on sid er the advantages through extra service— farmers’ room, ladies’ room, whatever fits your needs. Consider the increased con fidence, good will and patronage which is bound to result. Consider the asset of increased working efficiency, made pos sible by modern arrangement designed for your individual needs. Your new home will mark the beginning of a new life in your institution— with a new energy and enthusiasm for work and service. Avail Yourself of This Superior Expérience W hen you remodel or rebuild, the question of choosing the right organization to entrust with the interior is a paramount issue. C o n sid er these facts, and y o u w ill d ec id e, ju st as m o re th a n th re e th o u sa n d o th er b an k ers h a v e, th at THE F IS H E R COM PANY— BANK F IX T U R E H E A D Q U A R T E R S , is th e o n e o rg a n iza tio n best fitted b y ex p e rie n c e , a b ility , o rg a n iza tio n and fa c il ities to d eliver th e results y o u ex p ect. — W e offer y o u th e w id est ran ge o f sp ec ia lized ex p erien c e a v a ila b le— m o re th a n th re e th o u sa n d ban ks r e m o d e le d and e q u ip p e d to date— fa r m o re th a n any oth er fixture com p an y has d one. — E a c h y ear m o re h an k ers co n fe r w ith us ab ou t th eir b a n k in terio r p r o b le m s th a n w ith any s im i lar c o m p a n y . E a c h y ear m o r e b a n k ers h ave th e ir in terior w o rk d o n e b y us th an b y any o th e r c o m p an y. In o th e r w o rd s, w e are d o in g th e largest business in b a n k in teriors in th e W e s t. B eca u se o f th is u n p a r a lle d r e co rd , b an k ers h ave co m e to reco g n ize us as B A N K F I X T U R E HEADQUARTERS. — W e offer y o u th e m ost season ed ex p erien ce a v a ila b le — an en ce co v erin g e x p e r i 50 W e b e lie v e th ese facts ju stify th e suggestion that y o u con su lt w ith us a b ou t y o u r i n t e r i o r p r o b le m s b e fo r e y o u let a con tract. W e suggest a p r e lim in a r y co n feren ce , at years your bank, w h ic h places y o u u n d e r n o o b — h a lf a cen tu ry. O u rs is lig a tio n w h a tsoev er. th e old e st h a n k fixtu re w ill c o m p a n y in th e W e s t. cost postage you stam p o n ly to It a a r — W e offer y o u th e serv range su ch a co n feren ce . ices o f th e largest and A sk fo r list o f b an k s we best e q u ip p e d b a n k fix ture p la n t in th e W e s t. A b o v e is a view of the First National Bank, A m b o y, III. have e q u ip p e d in y ou r locality. T H E FISHER COM PANY BANK FIXTURE HEADQUARTERS Charles City - Iowa R eaders will c o n fe r a fa v o r by m entioning T H E N O R T H W E S T E R N B A N K E R w hen w ritin g to our a d vertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, THE 1922 N O RTH W ESTERN BANKER 163 BA N K EQ UIPM ENT SECTIO N M o lin e P lo w R e o r g a n iz e s Announcement of the completion of reorganization of the Moline Plow Company has been made. New plans for the company and its sub sidiaries, chief of which will be the Stephens M otor Car Company, were ratified. The new company was launched with $16,000,000 of current assets and with all current indebted ness cleared from its books except accrued and current expenses and $70,000 of current accounts. The most striking feature of the reorganization is the conversion of $25,000,000 of indebtedness into $12,500,000 of 20 year debentures and $12,500,000 of first preferred stock— $7,500,000 of old first preferred stock was converted into $7,500,000 of new second preferred stock. The financial house cleaning was done with unusual thoroughness. The assets are net after writing inventories and plants to rock bot tom, and ample provision for liqui dating all unprofitable departments and obsolete and slow-m oving in ventories, for possible losses on re ceivables, and for any reasonable contingency of further readjustments of the business or declines in value. A vigorous policy of readjustment and conduct of the business was pre sented by the management and rati fied by the directors, the most sig nificant feature of which is the plan of the president to modernize and im prove the system of implement sales and distribution. This promises lower prices on implements to the farmer. The officers elected are: Frank O. W etm ore, president of the First Na tional Bank of Chicago, chairman of the b o a rd ; George N. Peek, presi dent; H. S. Johnson, executive vice president; R. W . Lea, vice president and manager of the Stephens M otor Car C om pany; F. W . Edlin, vice president and sales manager; C. B. Rose, vice president in charge of tractor w orks; H. B. Dinneen, vice president in charge of implement manufacturing; L. C. Shonts, secre tary; L. C. Blanding, assistant sec retary; F. J. Hoenigman and John Hammerich, assistant treasurers. The follow ing were elected direct ors: F. O. W etm ore, G. N. Peek, H. S. Johnson, John E. Blunt, Jr., M er chants Loan & Trust Co., Chicago; C. P. Coffin, Illinois Steel Co., Chi c a g o ; Herman W aldeck, Continental and Commercial National Bank, Chi c a g o ; S. A. Mitchell, Mercantile https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Trust Co., St. Louis, M o.; C. T. Jaffray, First National Bank, Minne apolis, M inn.; Rumsey W . Scott, Chemical National Bank, New York City ; J. Herndon Smith, St. Louis, M o.; F. F. Winans, National City Co., Chicago; Henry R. Johnston, Chatham & Phoenix National Bank, New York City; R. I. Barr, Chase National Bank, New York City; Horace Fortescue, Philadelphia Na tional Bank, Philadelphia; H. H. Cleaveland, Rock Island, 111. The plan adopted seems the surest means of safeguarding all interests. It has re-established the company in GBO . N. P E E K a strong financial position, with am ple capital, reserves for all con tingencies, and no current indebted ness. The good will of the business is great, as is indicated by the una nimity of all concerned in reaching an agreement. A great improvement and simplification to the line has taken place during the last year. The company’s house is in order to take full advantage of the improvement in the implement and automobile business which seems inevitable. The Stephens Motor Car Com pany is placed in an equally sound position. The investment in plant and equipment is unusually low, and the assured standing of the com pany will now give ample assurance to every one interested in the Stephens automobile. The company has taken over the poppet valve m o tor business of the R. & V. Engi neering Co., and will manufacture an automobile engine as well as an engine for tractors and trucks, for sale to other manufacturers. George N. Peek, president, has great faith in the future of the com pany. “ The new company is dedicated to a policy of improvement in imple ment distribution,” said Mr. Peek. “ Implement sales to farmers have been on a system suited to frontier development before good roads, the parcel post, the automobile. We have had too many small dealers at cross-roads, and not enough strong distributors in natural trade centers — too much factory canvassing, small shipments and too long terms. T oo large a part of the price of the im plement to the farmer represented the cost of getting it to him. “ Our new plan means larger v o l ume and territory per dealer, more carload factory shipments, shorter terms, less factory sales effort, and as a consequence, larger discounts for farmer and dealer. It cuts out the wastes of distribution. It means more prosperous dealers and less cost in getting implements from fac tory to farm. It will make local financing more attractive than finan cing by the company. It will leave more of the profit of sales in the com munity where it is achieved. It will pull business by attractive discounts rather than push people into buying by weight of sales force. “ Farmers and dealers alike have been demanding these changes for a good many years and it gratifies me greatly to head this old and re spected company, newly and strong ly refinanced and dedicated to this much-needed improvement.” N e w F o r m o f B u s in e s s R e v ie w The Continental and Commercial National Bank of Chicago has made a radical change in the form of its regular business review. The new form shows the business barometers that have been used in compiling the chart, their movement and gives the interpretation of the authors as to what their movements indicate. The new form requires the analysis of a great mass of statistical information in order to present it in the chart form. It is worse to apprehend than to suffer.— LaBruyere. 164 THE B a n k P r o d u c e s M o t io n N O RTH W ESTERN P ic tu re The Central Manufacturing D is trict Bank of Chicago steps into the limelight on the bank publicity stage by producing its own motion picture film for commercial purposes. Opening up with a general view of the great Central Manufacturing District which the bank serves, the scenes follow showing a customer taking all the steps in renting a safe deposit box and safeguarding his valuable papers in the bank’s m od ern vault. It is apparent that the showing of this picture in local theatres gives people of the community a very in timate glimpse of the courtesy, strength and modern facilities of their own neighborhood bank, which would be difficult to duplicate with still pictures and cold type. Undoubtedly this phase of bank publicity is still in its infancy but this institution goes on record in ap proving the motion picture as an ef fective aid in promoting a bank’s best interests. Words of frank cheer, glances of friendly eyes: Love’s smallest coin, which yet to some may give the mor sel that may keep alive a starving heart. N ew BANKER B a n k in g H o m e The City National Bank of Goshne, Indiana, has just erected a beau tiful new banking home, which is pictured below. K. M. Vitzthum, CITY NATIONAL BANK of Chicago, was the architect. Offi cers of the bank are I. O. W ood, president; F. E. C. Hawks, vice president; W m . H. Charnley, vice president; C. E. Cornell, cashier, and P. H. Larue, assistant cashier. W h y B an kers A re B an kers A new bank office was in the proc ess of being settled. Electricians, scrub w om en,'w indow cleaners, of June, 1922 fice boys, carpenters and movers worked all jumbled together. And somehow when they were all gone, the office was not settled. The elec trician had been asked to connect a bell, but he said, “ It’s not in the con tract. I only attend to the lights.” The carpenter had been asked to fix a squeaking door. He said, ‘T only do the window jambs. It’s not in the contract.” The cleaning woman hadn’t dusted the desks. “ I am only supposed to mop floors,” she said. The office boy tripped over paper upon the floor, but didn’t pick it up. “ I carry paper,” he said, “ it’s not my job to pick it up.” Then the president of the bank looked on. “ W hy isn’t this place cleaned up?” he asked, and was told that at least six people were needed whose “ contracts” would permit them to do ‘‘the little more.” Then the banker himself carried out the paper, moved a desk, took up a chisel and monkeyed with the door jamb, and when he left the room was set tled. “ It wasn’t in his contract,” either. D o you suppose it’s likely that that’s just why he’s the banker and the others are office boy, window cleaner and so on?— Plain Dealer. IF TIME IS MONEY-WHY NOT SAVE IT? Save time by buying your requirements from us. We carry in stock and for immediate delivery your every need for BAN K or OFFICE, and are always in a position to quote as good a price as you can possibly obtain on merchandise of equiv alent quality. Mail your orders to us for prompt attention. Commercial Stationery— Bank and Office Furniture— Burglar and Fire proof Safes. McNamara Office Supply Co. DES°MOINES,UIOWA SPECIALIZING BANK EQUIPMENT AMERICAN FIXTURE CO. KANSAS C IT Y; MO. R eaders will c o n fe r a fa v o r by m en tionin g T H E N O R T H W E S T E R N B A N K E R w h en w ritin g to ou r advertisers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O RTH W ESTERN 165 BANKER O R D ER IN G BY MAIL IS PROFITABLE Account Books, Safe Deposit Box Re* ceipts and many other specialties may he secured at Zaiser’s. New stocks bought at lower current prices, have replenished each department and enable us to supply your needs im mediately at less cost to you. C h e c k P r o te c to r s Our salesmen call at regular intervals, but when in a hurry, you are urged to take advantage of our mail order depart ment. Our General and Furniture Cata logs place the supply market at your elbow— thorough satisfaction is assured. T w o C o lo r A lp h a b e t s Alphabets, blank guides and index tabs are shown in the General Catalog on pages 351-360. The Shaw-Walker Ideal Index is particularly desirable for verti cal files. Nothing is hidden, colors add “ speed” and they are easy to transfer. Tax Receipt books, Draft Registers, Col lection Registers, Pass Books and Clear ance Books are illustrated on pages 118-127. Daily Cash Statements, for National or State and Private banks, approved by examiners, are only $1.85 each. Expense Every bank needs a check protector. Many styles are shown in our catalog, including the Todd, Dimunette, P. & E. and Protectograph. Some are rebuilt machines and may be secured at sub stantial savings. Dating canceler machines, daters, wax seals, Star seal presses and complete rubber stamp outfits are abundantly il lustrated on pages 284-330. Order these by mail. Various styles of coin trays, changers, and mats are shown on pages 238-9. Note particularly the Damson Coin Cashier with a capacity of $200 in silver and a large gold cup. S h a w -W a lk e r S te e l F ile s This four-drawer letter file is mounted on feet, giving added height and insuring a sanitary condi tion beneath the file. “ Built like a skyscraper” ShawWalker files are free from sag, lo os e joints, pinched drawers—operate smoothly under any load—no rebound. Ask about the fourdrawer steel file at $35—a S'hawW a l k e r innova tion. Use T h is Coupon Bring the m a r k e t to your desk AN IDEAL OFFICER’S DESK This handsome 60-inch desk in quartered oak or mahogany, with brass pulls and trimmings, meets a banker’s needs. Vertical and card index files, large and small drawers and pigeon holes supply a most efficient, practical arrangement. Other flat and roll top desks from 42-inches to 78-inches, varying in weight and grade accordingly, are illustrated in our Furniture Catalog, in addition to tables, standing desks, typewriter desks and directors’ tables. Chairs to match are also shown. Write for this catalog—use the coupon—have the furniture you need. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Z A I S E R ’S, DES M O I N E S : Please send us— — Zaiser’s General Catalog. — Zaiser’s Furniture Catalog. —Zaiser’s Self-Indexing Ledger Booklet. -—Safe-Cabinet Circular. —Vault Interior Circular. Name ............................................ Address ........................................ 166 THE N O RTH W ESTERN BANKER June, 1922 A Profitable Investment A Business Builder — For You — Your Clients — Your Community T h e advertiser w h o gets h is m essage in te llig e n tly b e fo r e th e largest n u m b e r o f p e o p le — in th e m o st P E R S O N A L w ay— at th e least ex p en se, is th e advertiser w h o w ins. T h a t is th e reason fo r th e ever in creasin g p o p u la r ity o f d irect b y m a il a d v ertisin g w ith b a n k s and bu sin ess in stitu tion s o f every k in d an d ch aracter. D ire c t b y m a il a d vertisin g is n ot a m e re p u b lic ity sch em e— it is resu lt p ro d u c in g advertisin g. D ire c t b y m a il ad vertisin g goes rig h t to th e p ro sp ect— it goes to th e b u y e r p erso n a lly and gets th e m essage across. Y o u can b e o f n o greater service to y o u r clien ts and to th e institxitions on w h o se b o a r d o f d irectors y o u serve th a n to r e c o m m e n d direct b y m a il ad vertisin g as a b u sin ess b u ild e r and W hen you th in k o f direct b y m a il ad vertisin g th in k o f th e D e s M o in e s D u p lic a tin g C o m p a n y . T h e D e s M o in e s D u p lic a tin g C o m p a n y w ill tak e care o f every detail o f a d irect b y m a il c a m p a ig n . W e w ill p re p a re th e letters fo r a p p ro v a l. T h e n th e A d d r e ssin g , D u p lic a tin g th e L etters, fo ld in g and sign in g w ill b e p e r so n a lly su p ervised b y on e o f th e officers o f th is c o m p a n y . M o r e d irect b y m a il a d vertisin g in y o u r p r o sp e r ity fo r y o u r clien ts— an d y o u r b a n k . c o m m u n ity w ill m e a n greater D r o p us a lin e and w e w ill g la d ly fu rn ish details. D es M o in e s D u p lica tin g C o m p a n y 114 West Eleventh Street DES M O I N E S , IO W A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O RTH W ESTERN BANKER 167 For Bankers and Their Wants T h is d ep artm en t of T H E N O R T H W E S T E R N B A N K E R is to assist S U B S C R IB E R 'S in obtaining goods or service hard to find. It is free. Use it. A S K US, as we can tell you w here to buy anything you need in your bank or fo r your bank. T E L L US, as your “w a n t ” w ill be published under the above heading free of charge. In answering classified advertisements which have key numbers please enclose a two-cent stamp. T his is used to fo rw ard your letter. W a n te d cashiership or assistant cashiership in either Minnesota, Iowa or eastern part of North Dakota, town of not less than 1,000 population. Graduate of Dakota, business college. Twentyeight years old and with six years’ bank ing experience. Married. Can invest if desired. Address No. 2576, The North western Banker.— 6. W a n te d : Bank stock or controlling interest in good live bank in exchange for good farm land. Address No. 2577, The Northwestern Banker.— 6. W a n te d : Modern residence or busi ness property in good college town in exchange for farm land. Address No. 2578, The Northwestern Banker.— 6. W a n te d : Position by single lady in bank as stenographer and bookkeeper. Seven years’ experience. High school and college graduate. Best of references. Address No. 2579, The Northwestern Banker.— 6. Position W a n te d by young lady with four years’ general banking experience. Can operate posting machine and do stenographic work. Best of references. Address No. 2583, The Northwestern Banker.— 6. W a n te d Position in a bank by a young man of twenty. Nine months experience as bookkeeper and assistant cashier. Can invest. Employed at present. Best of references. Address No. 2581, The Northwestern Banker.— 6. Position W a n te d as bookkeeper in bank, country bank preferred. Twenty-one years of age and single. One year ex perience in country bank. High school graduate and one year at college. Have taught one year. Speak Norwegian and Spanish. Anxious and ready to com mence work at once. Best of references. Address No. 2582, The Northwestern Banker.— 6. W a n te d : Position by a young man with considerable experience in banking and insurance work. Cashier of country bank for six years. Address No. 2584, The Northwestern Banker.— 6. B anker Salesman W a n te d : Men over twenty-five years of age to devote entire time selling “ The Modern Country Bank Service.” Must have exceptional ability and furnish references. Address D. R. Wessling, President, Lytton Savings Bank, Lytton, Iowa.— 6. Banking position. Two and one-half years’ experience as assistant cashier. At present time in school work but want to get back into banking per manently. Thirty-three years old. Mar ried and with family. At present time also taking corrsepondence course with LaSalle Extension University, Chicago, in banking and finance. Can furnish excellent references. Address 2585, The Northwestern Banker.— 6. W a n te d . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis For Sale: One complete steel lined vault, two inch, solid steel door, plate glass back, two combinations; vestibule door, safety deposit boxes, 24"x24". Maganese screw door, safe double time lock. Two, 24"xl8” money chests. Ad dress No. 2580, The Northwestern Bank er.— 6. Position W a n te d as cashier in country bank by young married man of twentyfive. Four years of thorough banking and insurance experience. Now em ployed. A-l references. Address, No. 2586, The Northwestern Banker.— 6. Position W a n te d : As cashier or as sistant cashier. Four years of country bank and two years of city bank ex perience. Age 35. Can furnish best of reference as to ability and character. Address No. 2588, The Northwestern Banker.— 6. Position W a n te d as cashier in town from one to five thousand. Seven years’ experience in banking. Three years as cashier. Married. Twenty-eight years old. Can furnish best of references as to character, ability, etc. Address No. 2564, The Northwestern Banker.— 4-5-6. F or Sale: Complete set of up-to-date bank fixtures suitable for room 20 to 26 feet wide and 24 feet, 6 inches deep. A National Safe and Lock Co. vault door, one large safe, Burroughs adding ma chine and Burroughs posting machine, one work desk, two office desks, one wall desk, Oak chairs. Priced to sell. Very suitable for town of 1500 to 2000 people. Address No. 2574, The Northwestern Banker.— 5-6-7. V e r y High Grade Banker, financially responsible, would like to secure cashiership of country bank. Prefer Minnesota town of not less than 1,000 population and a bank with deposits up to $500,000. In the right bank will take option to buy control within one year. Prefer Minnesota location, north of Minneapolis. Can furnish fifteen years’ of experience and highest credentials. Will answer all inquiries. Address No. 2587, The Northwestern Banker.— 6. There are two kinds of success. One is the very rare kind that comes to the man who has the power to do. That is genius. Only a very limited amount of the success of life comes to persons possessing genius. The average man who is successful— the average statesman, the average pub lic servant, the average soldier, who wins what we call great success— is not a genius. He is a man who has merely the ordinary qualities.— Theodore Roosevelt. IN TH E DIRECTORS’ In th e D ir e c t o r s ’ ROOM R oom “ The program was opened with four popular Southern tunes, the well-known ‘Dixie,’ and ‘W ay Down Upon the Swanee River.’ ” — Colum bia University Spectator. Is simple mathematics a dead lan guage ?— Life. Perhaps the other two songs were drowned by applause.— Grinnell Col lege Malteaser. He—-I’m a little stiff from polo. She— You don’t say. W hy, I’ve some friends living there. — Phoenix. “ W hat were your father’s last words ?” “ Father had no last words. M oth er was with him to the end.” Y o u ’v e H a d H e r O u t She is “ wild about” mushrooms on toast, She is “ mad about” muffins and tea, She “ adores” nesselbrode and pie-a la-mode, And she’s “ ravished” with fromagela-brie, She’s ‘‘devoted” to coffee frappe, And “ just crazy” about a souffle, And vows she “ could die” eating truffles, Oh, my, She’s a regular girl I should say. — Mirror. Laboring toward distant aims sets the mind in a higher key and puts us at our best.— Parkhurst. BANK POSITIONS I f y o u w a n t a b a n k p o si tio n or need experienced b a n k h e lp , w rite The Charles E. Walters Company 1422-30 First Nat’I Bank Bldg. OMAHA - NEBRASK A 168 THE N O RTH W ESTERN BANKER June, 1922 “ Iowa National Fire / A V 99 Good Name W ith Which to Sell Iowa People POLICY HOLDERS Will Patronize an IOWA Company Guaranteed by IOWA Capital Managed by IOWA Men Officers FRANK L. MINER HE Iowa National Fire Insurance Company is a good name with which to sell Iowa people. The Iowa National reputation for de pendability and proven strength is a real asset to Iowa bank agencies. President C. M . SPENCER Vice-President and Secretary C. S. VANCE Vice-President and Underwriting Manager This is the kind of an agency that should appeal to Iowa banks and bankers. This agency asset and the cooperation of a company genuinely anxious to help its agents— is yours for the asking. Can you think of any better protection for Iowa credit than Iowa insurance? Write today. The Iowa National Fire Insurance Co. ORGANIZED BY JOHN L. BLEAKLY DES MOINES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O RTH W ESTERN BANKER 169 IN SU R A N C E SECTIO N Investment Opportunities By David E. Spahr American Fire Reinsurance Co., Davenport V E R since the American busi ness world began the American financier has overlooked one of the best opportunities offered for safe, sound, profitable and sane in vestment. The European countries have therefore been reaping the benefits, and had not the world war brought so noticeably to our attention, the utter helplessness of the American fire reinsurance facilities to care for that particular line of insurance, we might have continued indefinitely. Mr. Palmer, enemy alien custo dian, took possession of and liqui dated twenty-four enemy alien com panies whose premium income for the last five years they operated in the United States amounted to the enormous sum of $225,424,000.00. This source of supply has been per manently closed and the better American insurance companies are seeking reinsurance contracts with home companies, as is shown by the follow ing article from the ‘‘National Underwriter E “ New York, February 9, 1921. Mem bers of the American Foreign Insurance Association held a special gathering here several days ago to further consider the advisability of accepting reinsurance treaties from British and other old world underwriting corporations. The matter was first broached at a meeting of the organization some months ago, and re ferred to a special committee for detailed investigation. It was to hear from this committee that the special meeting was called. Last fall, the association might have had a number of highly desirable contracts from foreign corporations. These it is understood have since been placed elsewhere, and there is grave doubt as to whether the American association would now care to take up the line. In whatever action has been taken thus far, the organization members have always acted as a unit, hence the reluctance of the body to adopt any line of policy to which any considerable number of its members is opposed, and there is said to be violent dissent in certain directions to the idea of taking foreign treaties.” Over $600,000,000.00 of American insurance premiums are now going to British owned companies. One New Y ork agency sent $19,688,886.93 to the follow ing foreign countries: England, Russia, Japan, Spain, India and Poland. Approximately 33 1-3 per cent of all fire insurance pre miums paid by the American insured goes to foreign countries. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis There are eighteen supposed A m e r i c a n insurance companies owned solely by British capital. These companies’ premium income in 1919 was $217,142,279.00. There are twenty-seven foreign companies other than British operating in America whose 1919 premium in come was $314,519,583.00. In addi tion to these, it is estimated that pre miums amounting at the minimum to $100,000,000.00 and not reported to the various state insurance de partments covering on United States risks, goes to London Lloyds and other foreign insurance companies and associations annually. It is not generally known, but about 56 2-3 of the world’s wealth is controlled by insurance companies of all kinds. Fire insurance is as much a busi ness necessity as buildings in which to produce, or labor for production. There is a constantly growing de mand for it— a demand greater than existing facilities for writing it. An idea of the immensity of the fire insurance business may be gained from the 1920 Year Book is sued by the Spectator Company, a recognized authority in the insur ance field. These statistics repre sent a recapitulation for the 886 fire insurance companies for the year 1919. The following figures are in teresting to n ote: Total assets behind these 886 Fire Insurance Compan ies, exclusive of premium notes ................................... $1,419,893,103 490,316,478 Net surplus....................... Net premiums written in 833,948,082 United States, 1919........... 908,311,552 Total incom e......................... 344,308,413 Fire losses paid..................... 702,356,967 Total disbursements............ Dividends to stockholders, 57,592,967 during the year 1919........ The United States is the largest and richest fire insurance field in the world. The premiums paid to fire insurance companies by the peo ple of this country and Canada every year probably exceed those paid by the rest of the world combined. The total outstanding fire insurance risks in this country for 1918 amounted to nearly 90 million dol lars. The combined capital of the companies organized in the last fifty years has more than doubled. Their assets have increased by nearly 960 per cent and their surplus is greater by twenty-two times than it was fifty years ago. Insurance Commissioner H otch kiss, of New York, was quoted re cently as declaring that “ the need for more good reliable fire insur ance for the people of New York is more serious than the need for bread.” W e quote an excerpt from address by Mr. Hotchkiss to Credit men’s Association, New York, to il lustrate the need for greater insur ance facilities in New York City alone: “ This congested district is understood to be bounded by Chambers Street, Bow ery, Fourth Street and West Broadway. The value of insurable property in this district is conservatively estimated at $500,000,000.00. The capital and net sur plus of all the stock companies admitted to do business in this state, as given in the last annual report of the New York State Superintendent of Insurance on De cember 31, 1909, Aggregated $233,233,000.00. If each of these companies were to insure in the congested district re ferred to in an amount equal to its capi tal and net surplus there would still be left about $266,000,000.00 seeking insur ance.” The following is an extract from “ The Underwriters Review” of April 10, 1921. Article by Hon. J. R. Frailey, chairman Iowa Senate Committee on Insurance: “ The average person is amazed when he looks over the fire insurance field and notices that the great state of Iowa has such a small number of strong fire insur ance companies that call this state their home. During 1919, the fire companies local and foreign, collected in Iowa, $20,499,459.89 in premiums and paid back $9,040,357.00, so these figures prove that there is plenty of room for more strong Iowa companies. The American fire in surance business is practically in its in fancy at the present time, and it has only been in the last few years that the United States has claimed a fire reinsurance com pany. . Besides the large business strong fire insurance companies can do in Iowa, there is a great value to the state in hav ing the capital and surplus within the state for investment purposes. Iowa is destined to be for this great Middle West what Hartford is for the East, and should certainly be better represented with its capital in the fire insurance business.” Southern Surety Enters Maine The Southern Surety Company, of Des Moines, has been admitted to the state of Maine to do surety and casualty business. It is a matter of supreme impor tance how one educates oneself.—Hamilton W . Mabie. 170 THE N O RTH W ESTERN BANKER June, 1922 In s u r a n c e C o m p a n ie s C o n s o lid a te Confidence Requires Building Many qualities influence banker agents in the selection of a company but the deciding factor must be REAL CONFI DENCE in the company and the officers that shape its policies. For over a third of a century the Royal Union has stood for strength and reliability. The combination of these qualities with the Royal Union’s reputation for cooperation with its banker agents makes it the kind of a company you will find it a pleasure to deal with. We will be glad to explain our attractive banker agency contract. royalunionMutual life i INSURANCE i ! COMPANY. ! DES MOINES, IOWA S I D N E Y A. F O S T E R Secretary. F R A N K D. J A C K S O N President. 'I N A L L THAT IS GOOD IOWA AFFORDS THE BEST G E O . J. D E L M E G E , P r e s id e n t H O M E R A . M IL L E R , V ic e P r e s id e n t F. C. W A T E R B U R Y V ic e P r e s id e n t S IM O N C A S A D Y T reasu rer THEO. F. GREFE S e cre ta ry A. H. W ATSO N, A s s is ta n t S e cre ta ry C H A S . O. G O O D W IN , S u p t. o f A g e n t s C A P I T A L ....................................................................................$ 500,000.00 A S S E T S O V E R ...................................................................... 1,100,000.00 A Central W e s te rn Co mp any fo r Central W e s te rn People. Managed by experienced and conservative U n d e rw r ite r s and able F in a n ciers. W e solicit connections w ith active agents in this field who believe in the Central West, in Central W e s te rn people and in Central W e s te rn Institutions. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Policyholder’s National Life Insurance Company, with home of fice on the fifth floor of the Sioux Falls National Bank Building, Sioux Falls, South Dakota, is a consolida tion, or merger, of the Policyhold er’s Life Insurance Company and the United States National Life Insur ance Company, effected as of Decem ber 31, 1921, both of these companies being Sioux Falls companies organ ized and operated on the mutual legal reserve old line basis. The pri mary object of the consolidation was “ economy.” The merger has re sulted in a marked saving in operat ing expenses which inures to the benefit of all policyholders. The Policyholder’s National Life Insurance Company commenced bus iness November 24, 1919, under the title Policyholder’s Life Insurance Company. Since inception the com pany has had but one death loss, thus reflecting a conservative selec tion of risks. The 1921 experience of the company, in spite of adverse business conditions, has been most gratifying. Gross assets were in creased $64,494.40 ; policyholders’ re serve was increased $41,788.15. bank deposits were increased $26,165.80; surplus was increased $5,419.47, and an increase in risks in force of $922,625.00 was experienced. The officers of the consolidated company are experienced insurance men. Guy C. Barton, president, of Sioux Falls, formerly served six years as chief examiner for the South Dakota Insurance Depart ment; S. H. W itmer, vice presidentagency manager, Sioux Falls, has had a wide experience in developing agency and sales forces ; H. O. Chap man, secretary-treasurer, S i o u x Falls, formerly served as chief ex aminer of the Insurance Department of Nebraska; W . B. Young, consult ing actuary of the company, is the present Commissioner of Insurance of Nebraska, and is a widely known and competent actuary. Directors of the company, in addition to its officers, are substantial South D a kota business men. E. U. Berdahl, of Aberdeen, is at present secretary of the Retail Merchants Association of South Dakota; B. H. Millard, of Huron, a former banker, is now in the loan and insurance business; G. F. Barnes, of Pierre, is in the real estate and loan business in the capi tal city; C. O. Berdahl, of Garretson, cashier of the Minnehaha State Bank, is a former state representa tive in the South Dakota legislature and speaker of the House of Repre- June, THE 1922 N O RTH W ESTERN BANKER Judging the Future By the Past W e know of no surer way of judging the future than by the past— and the past for one hundred twenty-nine years has shown that the Insurance Com pany of North America was built for permanency. The past abounds with the praise of agents (many of them bankers) who built successful agencies with the North America as the foundation. In three centuries thousands of satisfied policy holders have been enthusiastic in their praise of this Company— its policies and its satisfactory service. And the very fact this Company has been an outstanding figure in the in surance business during all of these years points to what the future holds for the North America agents— for the reputation it has built and is strengthen ing every day becomes a great asset to agents. A m p le C apacity E x cep tio n a l Facilities INSURANCE COMPANY OF NORTH AMERICA PHILADELPHIA, PENNSYLVANIA In C on ju n ction W ith th e INDEMNITY INSURANCE COMPANY OF NORTH AMERICA “ Writing Practically All Forms of Insurance Except Life” https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 172 THE N O RTH W ESTERN BANKER June, 1922 Keep Local Money in the Local Community that is the policy of the State Life Insurance Company — HereIs Our Plan of Operation Which Makes This Possible Instead of investing its surplus funds in Bonds and Mortgages this company is now depositing its surplus funds with banks connected with our agencies and with our banker agents. A cting as a State Life agent you will be representing a company pos sessing strength— reliability and standing. You will find this a company conservatively, yet progressively managed. The State Life is now operating in Iowa, Minnesota, North and South Dakota, Kansas, Nebraska, W yom ing and Utah and expects to enter several additional states during the year. W e will continue to broaden our service and will consider it a pleasure to serve banker agents. ST R O N G A N D P R O G R E S S IV E Admitted Assets December December December February 31, 31, 31, 28, 1919........... $ 751,084.41 1920______ 789,543.44 1921........... 1,853,237.17 1922........... 1,917,911.79 $ Le^al Reserves Insurance in Force 8,479.87 58,094.06 997,859.25 1,173,763.67 $ 1.854,500.00 4,769,000.00 17,570,599.00 24,234,845.00 State Life Insurance Company of Iowa A. C. TUCKER, President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DES MOINES, IOWA WM. KOCH, V. P. & Field Mgr. June, THE 1922 sentatives at the last session; S. A. Donahoe, medical director, Sioux Falls, is a prominent physician and surgeon. A n In s u r a n c e C e n te r The Old Colony building, which has just been completed at the cor ner of Tenth street and Grand ave nue, Des Moines, is a real insur ance center. Seven agencies of the larger insur ance companies have leased suites in the building. They are the Equit able Life Assurance Society of the United States, R oy Heartman, gen eral Iow a state manager; Montana Life Company, M. M. Denting, Iowa state manager; W estern Union Life of Spokane, W ashington, W . P. H aley; Phoenix Fire Insurance C om pany; Ralph E lliott; Great American Fire Insurance Company, Charles E. Campbell; Hartford Fire Insurance Company of Hartford, Connecticut, B. T. Hough, and the Mill Owners’ Mutual Fire Insur ance Company, J. S. Sharp, secre tary. R a d io E q u ip m e n t a H a z a r d A ccording to the National Board of Underwriters, the installation of radio equipment on dwellings and other structures may present a fire hazard of considerable proportions. The board is pointing out the neces sity for taking proper precautions, such as the proper installation of the ground wire as far away from the building as possible. R ods G iv e n C r e d it In Io w a Credits for lightning rods on farm property in Iowa have been given and are practically the same as for Nebraska. The credit amounts to 15 cents per $100 on a five-year pol icy, 10 cents for three years and 5 cents for one year, with a credit of 20 cents of installment policies. The credit, of course, applies only to buildings rodded with equipment ap proved by the Underwriters Labora tories. A recent bulletin of the United States Department of Agriculture states that there has recently been appointed a committee to prepare a code applying to lightning rods. This committee collaborated with the Bureau of Standards, the W eath er Bureau and the American Insti tute of Electrical Engineers. It is hoped that the committee will be able to work out many practical methods and appliances to insure safety for farm buildings and farm property. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N ORTH W ESTERN 173 BANKER The Connecticut Mutual Life Insurance Company 1 8 46 1 9 22 HARTFORD, CONN. December T E N Y E A R S O F PR O G R E SS December 31, 31, 1921 1911 $ 19,799,042...........New Paid-for Business..............$ 61,765,820 199,154,900........ ...Insurance in Force.................... 413,239,003 6,426,779........... Premium Income ...................... 12,579,523 3,351,696........... Surplus ....................................... 6,848,688* *Includes Dividends, apportioned for 1922, of $2,060,000 and $750,000 Investment Contingency Reserve Fund. This Company for seventy-five years, with efficient service and conservative activity, has safeguarded the interest of its members in strict adherence to the best principles of mutuality. W e value among our boosting friends and agents many bankers who know that Connecticut Mutual service will satisfy their friends and customers. Let us explain our Bankers Proposition. CLAUDE FISHER GENERAL AGENT 606 Iowa National Bank Bldg. DES MOINES Public Appreciation The influence of Equitable low net cost on our agents production is no longer theory— it is now an established fact. The present demand for Equitable insurance is the result of public confidence in Equitable service for sixty-two years. The insurance that insures is a tangible selling factor for Equitable agents. The Equitable issues all the standard policy forms and one policy in particular that you would be interested in when once you know its flexibility and other advantages. W e want more banker agents. A request for information will not obligate you in any way. Write ROY H. HEARTMAN, Iowa State Agency Manager The Equitable Life Assurance Society of the U. S. A. Suite 800, Old Colony Bldg., 10th and Grand Ave., Des Moines, Iowa 174 THE N ORTH W ESTERN BANKER June, 1922 The Inter-State Has Paid Over $4,000,000.00 in A ccident and Health Claims and the Larger Part of This A m ount Has Been Paid to Bankers Dead Bankers By the dozen have left to their beneficiaries $5,000.00 through their untimely and unexpected death by accidental means. $3.00 produced $5,000.00 for each of them. $3.00 loaned out at 6% would have produced four and onehalf cents. Maimed Bankers By the hundreds all over America can tell you their story of what an Inter-State policy has done for them. Bankers may not be reckless in money matters but they are sometimes with their automobiles. Sick Bankers First and largest organization of its kind insuring business and professional men exclusively. ERNEST W . BROW N, S e c r e ta r y -T r e a s u r e r . By the thousands who carry insurance in the Inter-State can testify that sickness insurance pays just as well as burglary insurance. Sickness robs you of time which is money. Long-Headed Bankers Have saved millions of real money by carrying their acci dent and health insurance in the Inter-State, the first organiza tion of its kind in the United States for bankers on the plan of the traveling men’s associations. $4.00 admits you to membership in the Inter-State. that $3.00 pays for three months’ accident insurance. H O M E O F F IC E BRO W N HOTEL B U I L D IN G Inter-State Business M en’s Accident Association Des Moines, Iowa https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis After THE June, 1922 R e in s u r a n c e C o n tr a c t A p p r o v e d The contract for the reinsurance between the State Life Insurance Company of Iowa and the Union Life & Accident of Lincoln, Nebras ka, has been approved both by the Iow a and Nebraska insurance de partments, and the records and funds of the Union L ife.& Accident have been transferred to this strong Iowa company, which now has admitted assets of $1,917,911.79, legal reserves of $1,173,763.67 and $24,234,845.00 in surance in force. The State Life, which wrote over a half million dollars in April, was recently licensed in Nebraska, Kan sas, W yom in g and Utah. R. R. Lounsbury has charge of Nebraska, while O. C. Anthony is state mana ger for Kansas. H. E. Hinrichs is state manager for W yom ing. June has been set aside by the State Life as “ V ice President and Field Manager K och ’s M onth” and it is hoped by company officials that three-quarters of a million new busi ness will be written. Insu rance S c h o o l a t L in c o ln It is possible that a school for life insurance salesmen at Lincoln, and possibly at Omaha, Nebraska, may be established, through the efforts of the Omaha Life Underwriters A s N O RTH W ESTERN 175 BANKER sociation and the Lincoln Under writers. R. W . Gentzler, secretary of the Omaha Association, writes that every encouragement has been given by the regents and chancellor at the state university. E n te r T w o N e w S ta te s E. A. Merrill has been appointed general agent for eastern Iowa at Cedar Rapids for the Minnesota Life. Paul V. Snyder has been ap pointed general agent for the com pany with headquarters at Mason City. The company’s entry into Iowa was effective last week. The appointment of Bourke & King as general agents at Denver for the state of Colorado has also been an nounced. S o u th e r n R e in su r e s I o w a The reinsuring of the business of the Iowa Bonding and Casualty Company, by the Southern Surety Company marks another achieve ment of this progressive Iowa com pany. The Southern Surety Company is the largest multiple line casualty company located in the middle west, and at the present time is licensed in thirty-eight states and is writing premiums at the rate of approxi mately $7,000,000.00 per year, and has over $6,000,000.00 in assets. It is one of the largest and most promi nent companies in the state. Burns Brothers, investment bank ers, of Des Moines, brought this in stitution from St. Lodis in 1918, and have at all times been prominent in its supervision and upbuilding. A g e o f P o lic y h o ld e r s Men between thirty-one and thirty-five years of age buy more in surance than men between tw entysix and thirty, or thirty-six and forty, or any other five-year periods. Men between forty-six and fifty buy the largest policies, on the aver age. The figures of the Travelers In surance Company on regular poli cies dated and paid for in 1920 and in force at the end of the year by various age groups follow : (Regular business only) Age Up to 21 to 26 to 31 to 36 to 41 to 46 to 51 to 56 to 61 to Amount No. 26 .. 6,217 $10,954,213 25....13,089 33,722,157 30....16,633 58,087,860 35....15,907 69,167,466 40....12,210 61,226,696 45.... 7,586 42,086,837 50.... 3,949 23,508,874 8,576,504 55.... 1,521 2,566,642 60.... 469 386,313 65.... 103 Av. policy $1,762 2,576 3,492 4,348 5,014 5,548 5,953 5,639 5,473 3,751 B ank T h is G o o d W ill The good will spirit of co-operation which extends from the Home Office of The Lincoln National Life Insurance Company to every part of the field has a definite Cash value. It is making real money for the banker agents of the Northwest who have linked up with this rich asset of earnest service. An evidence of this fine camaraderie is in the agency meeting to be held at Christmas Lake, near Minneapolis, on June 26th, 27th and 28th, when Lincoln Life officials will come from the Home Office to discuss business problems with the Northwestern representatives of the Company. The result will be a better understanding of the business needs and helps for the Northwestern banker agents and an added confidence which will mean more commissions. Y ou join a good will band which goes right with you on the job of making added returns when you (J ink up ^ wuh thi^ lincoin]) The Lincoln National Life Insurance Company “ I t s N a m e I n d ic a te s I t s C h a r a c te r ” H o m e O ffic e — L in c o ln L i fe B u ild in g , F o r t W a y n e , In d ia n a N o r t h w e s te r n B r a n c h — L in c o ln B a n k B u ild in g , M in n e a p o lis , M in n e s o ta N ow https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis M o r e T h a n $ 2 1 0 ,0 0 0 ,0 0 0 I n F o r c e Pet. of total amt. 3.53 10.87 18.72 22.30 19.73 13.56 7.58 2.76 .83 .12 THE 176 W o r l d ’ s S e rie s I s O n A t th e U n io n There is nothing new in the idea of an employes’ contest for new ac counts, but there is a decidedly new feature in the organization method of the employees’ contest for new savings accounts which opened re cently at The Union Trust Com pany, Cleveland. This contest is organized under the surprising title of “ The W orlds Series.” The whole Union Trust Company is divided into eight “ leagues.” Each “ league” is divided into “ teams.” Each “ team” competes for the cham pionship of its “ league” and the “ leagues” compete for the champion ship of “ the worlds Series.” Each “ league” has its own president and scorekeeper and each “ team,” its own manager. Officers of the bank may be league presidents, but they can not “ play” on the teams. This unique organization gives a re markable opportunity for instilling pep and enthusiasm into the contest by the use of the phraseology of the sporting page. The scorekeeping is not an easy task, for although scores are figured by points, as is the usual case in employees’ contests for new ac counts, each league, each team and each employee is allotted a certain Our N ORTH W ESTERN BANKER quota of initial deposits to be ob tained. The league percentages are figured by taking the average per cent of attainment of three quotas— quota of accounts, of deposits, and o f employees who have “ made the team”— for an employe is not con sidered to have “ made his team” un til he has brought in at least one new account. W hen the employe has brought in this account, he is given a blue button to show that he is a team member. W hen he has reached his quota in accounts and deposits he is given a red but ton. The scorekeepers therefore compute the standing of the teams within each league, post the stand ing of the leagues in the W orlds Series and see that blue buttons and red buttons are issued to the mem bers who earn them. Scores are chalked up daily on big W orld’s Se ries scoreboards. O f course, employes will be given compensation for new accounts se cured in proportion to the number of “ points” they obtain. However, there are some special inducements ofifered. Managers of teams having the largest percentage at the close of the contest will get a special prize. The most productive workers of the June, 1922 tw o teams which show the highest average total initial deposits will be awarded special prizes. Then there will be individual prizes to be based upon the amount of initial deposits secured. There are prizes for employes under 18 years of age, and “ mystery prizes” week by week which are not announced until the last minute. The grand prize which goes to the one person who secures the largest number of points is a Ford touring car. He G ot W is e The Bankers Life of Des Moines got this letter from an applicant. “ I am interested in $10,000 of insur ance as I find that about each year I fool away enough money on stocks and things of that kind and brokers going bad on a fellow that I can afford to carry another ten or fifteen thousand and quit fooling with those fellows. “ In the end there is nothing made by it in the stock deals. You make, that’s true, but then some hound goes broke on you and you lose as much as you make, hence you make nothing. Think I better take out more insurance and let these other things alone.” Cooperative Organization of is especially adapted to Bankers and ever increasing the value and desirability of our connections. It is C onstantly at the Banker’s Service Select as the Logical Life Insurance C onnection By our personal service and cooperation, on which we specialize, we add to the sat isfaction and value of a good life insurance connection. Banker’s V iew point is a consideration of importance to us. We work with the Banker, aiding him wherever it is possible to do so. H A R R Y S. HASKINS, State Agent 701-703 Hippee Building DES M OINES, IOW A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bo s t o n . M a s s a c h u s e t t s one of the Oldest, Largest Strongest M ost Reliable Organized in Civil W ar Period 1862 June, THE 1922 N ORTH W ESTERN BANKER CAPITAL $ 100, 000.00 “ ACE HIGH IN I O W A ” “ You Can Bank on the Bankers" Something N ew — A Dividend Policy Officers OOD accident and health insurance costs money— but is it not better to have a small good policy than a larger one that is restricted and limited in many respects? The rates charged for insurance are based on the risk assumed and on the assumption that the applicant is a normally healthy individual. In the long run the careful man who carries disability insurance for years without making claims for trifling disabilities can be insured for less money. E. C. B u d l o n g J. A. K i z e r Secretary This is the way we reward the persistent paying careful man who stays and pays— on our Dividend Disability Policy. At the end of the first year if no claim has been made we add 20% to the amount insured—and in like manner each year thereafter 10% until the entire policy has increased fifty per cent—these increases remain in effect during the life of Policy. This is equivalent to a saving in cost of 33y3% — in short— you either get a claim check or an increase yearly. The policy is good for the man who has a claim and good for the man who escapes—but sooner or later you will benefit— one person in every five insured is disabled each year. This is a good policy to buy and a good policy to sell if you are handling insurance in your hank. Ask for sample and agency terms. W e lead all companies in volume of Iowa business. B an k ers Company DES MOINES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In su ran ce i// 178 THE N ORTH W ESTERN BANKER June, 1922 M id la n d M o r t g a g e In N e w Q u a r te r s There Is Nothing Sounder Than “ Good Old Iowa Farm Mortgages” t O W A is the center of the greatest farm ing area in the world. T h e unrivaled productiveness of its soil and the pro gressiveness of its people stam p Iow a as the premier agricultural state of the Union. We specialize in Iow a farm m ortgages, devoting our entire time to the selection of ju st th at type of loans which our clients are proud to own. Personal attention to your interests is a part of our “ Service to C lients” . A long term lease for the ground floor of the Armstrong building at 220 Third Avenue, has been obtained by the Midland Mortgage Company of Cedar Rapids, Iowa, and the com pany plans to move from its present location on the fourth floor of the Cedar Rapids Savings Bank building to the leased quarters as soon as pos sible. Contracts for the remodeling of the new offices have already been let by the company. The first section of the floor will be used as desk room for the employes and as a lobby for customers. Private officers’ rooms will be in the rear. The Midland M ortgage Company, established four years ago, has be come one of the strongest companies in Iowa engaged in the handling of farm loans. The company is repre senting several well known insur ance companies and since its organ ization has negotiated more than $10,000,000 of farm mortgages. Officers of the company are: Pres ident, Frank C. W aples; vice presi dents, Clifford DePuy and R. S. Sin clair; secretary-treasurer, Ingram Bixler; assistant secretary, R. J. Soener. F ir s t Stanley-Henderson Co. Farm Mortgage Bankers Capital $300,000.00 Cedar Rapids, Iowa LOANS FARM iimimiiniiiiiniiiiiiiiiiiuiiiiiiiiiiiimiiiimiinuiiiiiiiiiiuiiiiiiimiiiiiu in iiiiiiiiiu iiiiiiiiiiiiin iiiiiiiiiiiiiiiiiiiin iiiiiiiiin iiiiiiim iiiiiiiiiiiin iiii American Mort¿a¿e & Securities Company CEDAR RAPIDS, IOWA H o m e Office M a n c h e ste r, lo w « https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CAPITAL $ 200 ,000.00 G e n e ra l Office H l g le y B u ild in g Cedar R a p id s , Iovra N a tio n a l C hanges The board of directors of the First National Company, which is the in vestment division of the First Na tional Bank in St. Louis, at its reg ular meeting announced that the resignation of Tom W . Bennett as president is now effective. In accordance with the action tak en at the last month’s meeting of the company’s directors, F. O. W atts, president of the First N a tional Bank, succeeded to the office as president of the First National Company, with Henry T. Ferriss, vice president, in active charge of the company’s affairs. Several changes and additions in the personnel of the company were announced at the meeting of the board. They are as follows : J. Cham Ely, manager of the Memphis office of the National City Company, was appointed sales manager, effective June 1. Chauncey Clark, now as sociated with the firm of Jourdan, Rassieur and Pierce, will be ap pointed counsel. Clark is a native of Springfield, Mo., a graduate of Yale University and Harvard Law School and has practiced law in St. Louis for ten years. Alfred Fairbank, now assistant bond officer of the company, was appointed assist ant manager of the municipal bond department. June, THE 1922 N O RTH W ESTERN BANKER 179 IOWA FARM MORTGAGE SECTION The Northwestern Banker is the official publication of the Iowa Farm Mortgage Association O F F IC E R S — G riff Johnson, Des Moines, Pres.; Varick Crosley, Webster City, V-Pres.; C. R. Davis, W aterloo, E X E C U T IV E C O M M IT T E E E. H. Lougee. . . ...............................Council Bluffs C. Alm or Stern ...................................................... Logan H. Stanley Moore ............... '................... Cedar Rapids G. Geo. F. Heindel............................................Ottum wa T. Ed. Kauffman, e x - o f f i c i o .. . .'............. Davenport F. B. M ille r ............................................. Cedar Falls J. F. H a rd in .....................................................Eldora Geo. W . W illia m s ...................................Des Moines Tax Exemption More Destructive Than Railway Pass System By R. R. Rogers President Vermont Loan and Trust Company, Spokane T A T IM E within the memory of men now living, it was the custom for railroads to issue free passes to specially favored citi zens, while others were obliged to pay full fare. In every town and village a few merchants received rebates on their freight charges, while their com petitors paid full rates. When con gress and state legislatures first con sidered the enactment of laws to abol ish these discriminations, great opposi tion arose from the favored ones. It required many years of discussion to bring about this reform. No one would return to the old unfair dis criminatory system now. The present tax-exemption system is very similar to the old railroad pass and rebate system, but it is immensely more destructive in its effects on busi ness. The funds withdrawn from produc tive industry and locked up in taxexempt securities are bleeding Ameri can business white. They injure active business for the benefit of the idle and retired. While present indica tions point to an improvement in loan ing rates, business is retarded by the handicap of competition with taxexempt securities. A The great bulk of loans in the past for railroads, mines, farms and busi ness enterprises have come from per sons enjoying large incomes, because these are the ones who are annually able to lay aside the largest per cent of surplus. The majority of persons with small incomes have little surplus for investment. The tax exemption of securities enables these large in vestors to profitably divert their in vestments from productive industry, bringing about the palsied and frozen condition against which we are now struggling. Two remedies for the present difficulty have been suggested. One is to make all moneys and credits tax free. The other is to remove the present exemptions so as to elimi nate discriminations. The first remedy would greatly in- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis crease the amount of taxes paid by earned incomes, farms and other real estate. It is, therefore, plainly im practicable and unjust to home own ers, renters, farmers and wage earn ers of all classes. It has been asserted that if American agriculture and American business keep on going into debt they will soon be unable to pay their taxes. One thing is certain, if they keep on issuing tax-exempt secu rities agriculture and business will soon be paying all of the taxes. The second remedy is provided for by a pending amendment to the fed eral constitution, recommended by President Harding in his last annual message. Three resolutions have been introduced for this purpose, one by Senator Smoot of Utah, one by Repre sentative Green of Iowa, and one by Representative McFadden of Penn sylvania. When the importance of this amendment is fully understood, the voters of America will be as unani mously for it as they are now against a return of special railroad discrimina tions. Opposition to the resolution is principally due to general lack of in formation as to its importance, and misunderstanding as to its effects. The federal government now levies income taxes and other taxes upon citizens of every state in the Union, but levying of federal taxes on the income of state and municipal bonds would not increase the total volume of taxes required by the national treas ury. It would simply make a more equal distribution of the taxes col lected, permitting the reduction of many taxes now collected from other sources. Hearings on the amendment are be ing had before the house committee on ways and means. If the amend ment . Is favorably reported by the committee, it will then be necessary for it to pass both houses of congress before it can be submitted to the leg islatures of the several states. Con gressmen are naturally conservative. They desire to vote in accordance with the wishes of their constituents. Every Treas.; F. C. Waples, Cedar Rapids, Sec’y. H. P arks.........................................Council Bluffs S. Van Alstin e...............................Gilmore City M. T itu s .................................................Muscatine A. M urphy. .1...................................... Des Moines voter can help to cast a vote in con gress by writing to his representative in Washington, endorsing this amend ment. It is very necessary that work of this kind be done. If there is a fight for the appoint ment of postmaster in any village or city, there is no trouble about inter esting people to take sides and express their views to their congressmen. The adoption of the tax-exemption amend ment to the federal constitution is a hundred times more important to the taxpayers of every community than the choice of a postmaster. The great growth of sentiment in favor of the amendment since the campaign was started three years ago is very encour aging and the outlook is hopeful for early congressional approval. Butfierce opposition may be expected from the well-organized beneficiaries of the tax-exemption privilege. Land Bank Mortgages Tax Free First mortgages on real property given to the Federal land banks are not taxable under the Minnesota mortgage registry tax, Clifford L. Hilton, attorney general, holds in an opinion given to the ¡registers of deeds of Minnesota counties. The opinion reads: “ Numerous inquiries have been re ceived relative to the effect, if any, of the Alabama decision in connection with the administration of the Minne sota registry tax law, especially with reference to the recording of first mortgages on real estate given to fed eral land banks. “ What constitutes the subject of the tax must be kept in mind. In Alabama, according to the decision re ferred to, the tax was declared to be on the privilege of ¡recording. In Minnesota the mortgage registry tax is not a privilege tax, but is a property tax. “ It is clear beyond doubt that, in the absence of authority given by Con gress, states have no power to tax either the property or instrumental ities of the federal government. It follows that the former opinion of this office, holding first mortgages given to federal land banks as exempt from payment required under our mortgage registry tax law, is adhered to.” 180 THE Denison Blue Sky Bill Canadian farm mortgages are classified with Canadian whiskey, as contraband commodities not eligible for importation, by the Denison Blue Sky Bill, according to a bulletin is sued by the Farm Mortgage Bank ers Association of America. As the bill was formally approved by the house committee on interstate and foreign commerce and has passed the house, this affront to our good friends on the north is unfortunate, but it will never pass the senate in this form. The bill is patterned after the W ebb-K enyon A ct and the Mann Act. It is an attempt to apply pro hibitory principles to the regulation of legitimate interstate commerce. It is a jumble of contradictions, the bulletin states. It forbids mail ing letters, circulars or pamphlets across state lines into states where dealers in securities have failed to comply with any of the most trivial technicalities of state laws, but it permits unlimited advertising in newspapers. As Kansas has a law excluding newspapers advertising cigarettes and several states prohibit newspa per advertising of certain classes of securities, before the bill becomes a law it will doubtless be amended to N ORTH W ESTERN BANKER regulate newspaper advertising of securities in all states. It conflicts with the Federal Farm Loan Law by making it illegal to offer for sale through interstate mails first mortgages on productive, cultivated farm lands if they are not equipped with buildings. It permits the sale of certain classes of bonds when the collateral supporting them may be of less mar ket value than the bonds offered for sale, but it forbids the sale of second mortgages on real estate regardless of the margin of safety. It authorizes the legislatures of forty-eight states to create crimes against the postal system, although congress from the adoption of the constitution has been the regulating authority of the mails. It provides for fines as high as $5,000 and imprisonment not exceed ing five years for violation of its pro visions where no fraud is intended and none committed. This proposed federal statute is unique in that it is not to supersede any state law now existing or here after enacted. Instead of promoting uniformity it increases the confusion that now exists. An alert legal representative in each of the forty-eight states will be required if this bill passes, by every June, 1922 company doing a national business, to avoid technical violations of state laws. Legislative acts and decisions of state courts are constantly chang ing state laws. The Denison Bill allows the department of justice at W ashington sixty days in which to secure this information, but dealers in securities will be liable to penal ties during the period that W ashing ton officials are uninformed. Standard securities are handled on very small margins of profit. Re liable dealers will curtail their busi ness areas, because profits will not warrant maintaining expensive bu reaus of legal research to avoid pen alties for technical mistakes in no way fraudulent. Dealers in securities of doubtful value, yielding a large margin of profit, will send traveling representa tives to mail letters within limits of states where securities are offered for sale and to make bootleg deliver ies. They can also afford to estab lish temporary local state agencies and thus avoid additional heavy pen alties provided by the Denison Bill. There is no provision in this bill to punish a Nebraska citizen for writing a letter to New York to pur chase a bond advertised in a Chicago paper circulated in Nebraska or ad vertised in a letter mailed in Omaha. ■ra LOANS FARM Our Inspection Service is both prom pt and efficient. W e use our own funds— closing prom ptly. W e are ready to negotiate loans on choice Iowa land up to $100 per acre. W h a t can we do for you? Y o u will find your dealings with this com pany pleasant as well as profitable. Farmers Bond & Mortfja^e Co. Fifth Floor Hippee Building DES MOINES EDWIN HULT, President T w e n ty -fiv e Y e a r s in the M o r t g a g e B u sin e ss in D e s M o in e s https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O RTH W ESTERN 181 BANKER Io w a F a r m Lo ans Loans up to $100 per Acre We are negotiating loans up to $100 per acre on choice lands at lowest consistent rates. Unlimited funds are at our disposal for high class loans. Rates and terms gladly quoted. We also have outlets for large loans that meet our requirements. Midland Service Midland Service means prompt inspec tion, immediate acceptance and closing. A M ID L A N D connection will be valuable to you. Midland Mortgage C ompany C E D A R R A P ID S , IO W A Capital $300,000.00 OFFICERS F. C. W A P LE S, President CLIFFO RD D ePU Y, Vice President R . S. SIN C LA IR , Vice President IN G R A M B IX L E R , Secretary-Treasurer R . J. SOENER, A ssistan t Secretary P. T . W A PLES, Representative E. B. H O Y M A N , Representative https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis D IR EC TO R S IN G R A M B IX L E R W . L. C H ER R Y C LIFFO RD D ePU Y W . W . O TTO P. C. RUDE R- S. SIN C LAIR F. C. W APLES 182 THE NORTHWESTERN BANKER J une, 1922 “Ask your local bank for an ‘ET C ’ Letter of Credit” HIS M E SSA G E is being carried by full page advertisements in national magazines with combined circulation of over 1,500,000. It is being read by people who will go abroad for business or pleas ure this year. To your customers, the “ E T C ” Dollar Letter of Credit means a letter of credit known and honored by the principal banks throughout the world, plus the con veniences of The Equitable’s Paris Travel Service Bureau. To your bank, it means additional good will and a means of advertising your bank abroad; for we are issuing the “ E T C ” Letter to correspondent banks, bearing their own imprints. For full particulars, write to our For eign Department. t he E q u it a b l e TRUST COMPANY OF N E W Y O R K C hicago O ffice: National Life Building, 29 South La Salle Street D O N A L D M . D e G O L Y E R , Manager https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fune, 1922 THE A “ bootleg” delivery of the security would be unpunishable under this bill, if the agent of the vendor crossed the Nebraska state line on foot or in a private conveyance. Enforcement of the law will re quire a horde of new public officials, more numerous than the “ dry law” special agents, because its enforce ment is to be taken away from the postal department and given to the department of justice. It would be cheaper for the taxpayers to use the efficient organization of the postal department. Idle effect of the bill will be to pre vent the free flow of capital between the states. New England school teachers and factory operatives will receive lower interest on their earn ings while the farmers of the south and west will be obliged to pay higher rates of interest. This is un favorable to agriculture and the de velopment of cities. Idle National Association of Real Estate Boards and the Farm M ortgage Bankers will protest to the senate against the unfair restrictions on real estate mortgages. Disapproves Tax Exemption N O RTH W ESTERN 183 BANKER at the spring meeting at W hite Sul phur Springs: “ Believing that tax exemption is an unmitigated evil that inevitably must lead to disturbance, confusion and injustice, we again record our unqualified disapproval of each and every such exemption, and again assert our approval of the proposed constitutional amendment which is aimed to do away with such exemp tions for the future.” Circumstances are beyond the con trol of man; but his conduct is in his own power.— Disraeli. Though we travel the world over to find the beautiful, we must carry it with us or we find it not.— Emerson. Farm Loans Send us your applications. Rates and terms liberal for 5, 7, 10 or 20 years. We have plenty of money for good loans and can furnish funds promptly. Tell us now what you want. We can give you immediate attention. Over $25,000,000.00 outstanding Leavitt & Johnson Trust Co. ddie follow ing resolution was passed by the Executive Council of the American Bankers’ Association Waterloo, Iowa M arketability of Mortgages A S u b ject o f In te r e s t to B a n k ers Present day investors not only demand safety of principal and good return, but also freedom from trouble and investigations— which mean expense Your Farm and City Mortgages are made more attractive to large investors when they are accompanied by our National Title Insurance Policies. Many large investing concerns require these policies— all welcome them. Our adequate, economical system of Title Insurance is at your service. W e Insure Titles Anywhere in the United States Send fo r fo ld e r N. B. 1 Ca pital, Surplus and U n divided Profits Over $ 6 , 000 , 000 , Affiliated w ith A M E R IC A N T R U S T CO. Br oadway at Ce da r Street Ne w Y o rk https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis New York Title and Mortgage Company 135 Broadway New York 184 THE N O RTH W ESTERN i^ ^jw inm uifinfinnjirm iuui BANKER iimnnATinimn/injum^^ Back o f Our Bonds Conservative Appraisal and Thorough Investigation The Cleveland Discount Company exercises and judgment in the making of loans. the utmost care W hen this company receives an application for a loan, whether large or small, that application must pass through five separate departments: 1. The Appraisal Department, which appraises the land and makes a general survey of the neighborhood and conditions af fecting it. 2. The Engineering Dej>artment, which carefully considers the plans and estimates the cost of the proposed building. 3. The Treasurer’s Department, which passes upon the general credit and reputation of the borrower and his ability to pay promptly. 4. The Legal Department, which approves all legal matters, including approval of titles. A branch of the Legal Department checks insurance policies and other technical matters relating to the loan. 5. The General Business Department, which fixes the rate of in terest and the desirability of the loan front the Company stand point. If any department objects to the loan, it is declined. If all departments approve the application, the reports are submitted to Fred C. Emde, Vice President in charge of loan operations, who with his assistants further considers the matter; and, if approved, presents his findings at a regular meeting of the Executive Committee. A ll mortgages and bonds are sold plus the company’ s guaran tee, thus adding resources of more than twenty-two million dol lars to the security provided by the real estate itself. THE CLEVELAND DISCOUNT C O M PA N Y NEW YORK CLEVELAND LOS ANGELES PHILADELPHIA BALTIMORE DES MOINES AND OTHER PRINCIPAL CITIES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O RTH W ESTERN BANKER 185 BOND S E C T I O N Europe Is Getting Back on Her Feet Financially By Leslie Hanson (Continued from page 28.) reparations, and 2,500,000,000 francs from sale of German bonds. If she can be paid more than this in repara tions the possible deficit will be re duced and additionally French ex change will improve. In England considerable progress has been made in reaching sanity in the matter of governmental finance. In the fiscal year ended March 31, Great Britain showed a surplus of £45,693,246. The new budget esti mates revenue at £910,770,000 a half billion pounds sterling below actual re ceipts for 1920-1921 and over £200,000,000 below the receipts for the fis cal year ended March 31. Expendi tures as estimated represented a tre mendous saving and as a result the taxes have been reduced slightly which should have a beneficial efifect on business. Italy also is improving. Latest in formation covers December, in which period government revenue receipts amounted to 1,459,000,000 lire in com parison with 1,228,000,000 for Decem ber, 1920. Receipts for the first six months of the fiscal year in Italy were more than one billion larger than in 1920. The banking sore spots occa sioned by difficulties of the Banca di Sconto have been salved and business is showing considerable improvement as a result. Italy is working hard to keep her budget balance and this is a beneficial development. Europe is gradually getting back to work and if she can be encouraged to steady industry and saving half her ills will be cured. America can help her get on her feet in a substantial way. Let us return to Mr. Schifif and study what he has to say on this subj e ct: First, we can be of great help by giving our disinterested counsel and advice. Europe has confidence in the good faith and unselfishness of purpose of America, and will listen to us where other's are viewed with suspicion. The moral au thority of America is extraordinary in Europe today. Second, we should make a prompt de termination of policy regarding the prop erty still held by the Alien Property Custodian. It is perhaps not generally realized that today, three and a half years after the end of the war, the Custodian still holds about $350,000,000 of property which is entirely idle, and that Congress https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis has not yet acted regarding its disposi tion. Such grounds as there were for the seizure of that property, as a protective war measure, no longer exist. The prop erty which was seized belongs to some body. It is either the policy of our gov ernment to confiscate that property per manently or to restore it to its rightful owners. That property is capable of im mensely productive service in the present attenuated credit conditions of Europe, and it is of vital importance therefore that a final determination should be made as to what is to be its destiny, and thus remove another of the elements of uncer tainty which today so seriously affect the foreign exchanges and thus the whole basis of international trade and pros perity. Capital is proverbially timid and will not go where there is no assurance of protection and stability, and as we want to be sure that such part of ours as is invested in foreign countries is safe from seizure and confiscation, we must give constructive leadership in iestablis;hing beyond per-adventure the principle of the sanctity of private property. Third, we should make our own capital available to the maximum degree for in dustrial and economic rehabilitation throughout the world, not through inter governmental advances, for we want gov ernments to keep out of business, but through our investors buying foreign se curities. There is in these suggestions by Mr. Schifif a world of sound logic and if the investment bankers will bear them in mind it will go far toward estab lishing prosperity in this country as well as in Europe. One fact, how ever, stands out and that is that there is a steadily diminishing demand for American money in the way of public loans for Europe. A leading invest ment specialist who was in Europe un til May 1 says that London is in po sition to underbid the United States at all times and will obtain practically all the future European financing ex cept in instances where there are modi fying circumstances out of the ordi nary that forces business here. Money is extremely cheap in London, he points out, and the investment market there is every bit as good as the American demand, which means the British can absorb a large volume of new securities, which now ordinarily drift to New York. At least four foreign loans have been taken away from American bankers by London in the last month and there probably will be more. Old Colony Company The Old Colony State Bond Com pany is an Iowa corporation and deals in first mortgages and first mortgage bonds. The office is on the ground floor of the new Old Col ony Building, on Grand Avenue at Tenth Street, Des Moines. The laws of the state of Iowa in regard to the sale of first mortgage bonds by a company operating in the same manner as the Old Colony State Bond Company are so con structed as to make a powerful guar antee of their principal and interest to the bond holders. For instance, the company sells first mortgage accumulative bonds on monthly payments. This sale at once comes under the state super vision. The laws of the state require that the money paid in must be in vested at once in good first m ort gages on real estate, not to exceed one-half the valuation of the proper ty. These mortgages are assigned to and held by the state auditor for the benefit of the bond holders. The Old Colony State Bond Com pany is required by law to give the same high security to their invest ors that insurance companies are re quired to invest their reserve funds. Buying first mortgage bonds such as Old Colony bonds represent on monthly payment is what might be termed a “ guaranteed savings.” The officers of the Old Colony State Bond Company are prominent men of business reputation in Des Moines. E. G. Randall, president, is also president of the E. G. Randall & Co., representing Iowa for the Cleveland Discount Company. Mr. Randall’s judgment and stability is well recognized by business men throughout the state. Col. L. D. Ross, secretary and treasurer, prominently known for his military service during the world war, is also a man of proven business sagacity and dependability. Colonel Ross personally is well known to many Iowa people. Previous to his association with the company Col onel Ross was superintendent of se curities for the state of Iowa. N. J. Ferring, manager, is chair man of the board of directors of the Falcon Milling Company. Mr. Fer ring drew state-wide attention to his work as organizer and cashier of the Bellvue State Bank which was capi talized at $30,000 and in five years was able to recapitalize at $60,000 with deposits in excess of $1,000,000. T H E 186 FREQU ENT T A X ERRORS Continued from page 29.) take them to some bank and have them discounted. You can not make installment sales based on negotiable notes; neither can the transaction be re garded as an installment sale if the first payment is in excess of 25 per cent of the total selling price. Inquiries from Banks Typical bank questions empha size best just what tax matters are troubling bankers at the present time. Follow ing are several of these just recently received: Q uestion: A bank has charged to expense cost of posting machines, adding machines, typewriters, etc., totalling probably $4,000, during the past two years, although they were shown as adjustments on books, and not deducted for taxes. Could they now pick them up as furniture and fixtures, in order to receive benefit of depreciation? A n sw er: In other words, they were not taken into the tax return NORTHWESTERN at all. If you go back and pick up those items, capitalize them, you can get your depreciation on your in come tax return and you can include the assets in invested capital. Q uestion: If so, need they be picked up on the balance sheet of the bank, or only on a memoran dum ? A nsw er: You do not need to bring them into your books. But you must keep a memorandum, so you can reconcile right along and have proof for the department. Q uestion: On a certain loan of $50,000 a bank believes that only $45,000 is collectible, though settle ment is not to be made for some tim e; is it better to charge off $5,000 now or transfer $5,000 to “ reserved for bad debts” and charge off when settlement is made? A nsw er: You are entitled to a deduction for bad accounts. The new law provides that a taxpayer may take a deduction for a whole debt found to be worthless or for an uncollectible part of a debt, or if he sets up a reserve for bad debts, he INCOLN GAS L & E lectric L ight Co. first mortgage 5% gold bonds o f 1941 are se cured by a closed first mortgage on property whose earnings are more than three times interest charges on these bonds A High Grade Bond A. B. Leach & Co., Inc. Telephone Central 8 40 0 105 S o u th L a S a lle Street, C h ic a g o https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKER June, 1922 may claim a deduction for a reason able addition to such reserve. If you want to set up a reserve for bad debts and return on the basis of that reserve, of course, the $5,000 above referred to will have to be taken into consideration with the reserve. It is for you to decide which way you want to exercise your option. You can get the benefit of this $5,000 de duction either way if it is uncollecti ble. Question : Building on books cost in 1916, $5,000; 1917, depreciated to $4,000; 1918, depreciated to $3,000; 1919, depreciated to $2,000; 1920, depreciated to $1,000, and in 1921, depreciated to nothing. Repairs de ducted as expense, 1917, $1,000; 1918, $1,000; 1919, $1,000; 1920, $1,000; 1921, $1,000; total, $5,000. Building still fit for use for five years. W hat is the status? A n sw er: The status is simply this, that they depreciated too heavi ly in each of those years. Unless amended returns are filed for past years, no depreciation can be taken during the remainder of the life of the building. If amended returns are filed and back taxes paid, the life of the building may be reset and depreciation may be extended to cover such longer life. Seventy-five per cent of the cor porate tax returns are considered to be in error on depreciation alone, and 30 per cent of that 75 per cent could have been corrected had the taxpayer possessed a full under standing of the situation. T o know some of the rates which the government allows may, there fore, save time, money and incon venience. This for your own as well as for your clients’ information. Follow ing are some of the rates which the government allow s: Buildings, concrete, 2 per cent; brick, 3 per cen t; wooden structures, from 3 to 5 per cent. The Primer states that the aver age lifetime of a frame building is 25 years; brick, 35 years; stone and concrete, from 50 to 100 years, but concrete, I understand, unless it is very heavily reinforced, modern buildings just recently put up, per haps will have to be torn down in 50 years. Tools should be charged off in the manufacturing, as a manufacturing expense. Patterns last from 4 to 10 years, giving a rate of from 10 per cent to 25 per cen t; iron patterns, from 4 to 6 years, rate 16 2-3 per cent to 20 per cent. Most machinery will run from 10 to 20 years, rate 5 per cent to 14 per cent. June, 1922 T H E ¡N O R T H W E S T E R N Furniture and fixtures, from 7 years to 15 years, rate 6 per cent to 14 per cent. Bank fixtures, mostly around 7 years, because of replacing them, on account of having your equipment look up-to-date. There is a good deal of rivalry among banks, so that they keep things up better than the average manufacturer. W here desks will last the average manufacturer 30 years, 3% per cent; in banks it will run around 7 to 15 years. Boilers will last in the neighbor hood of about 4 to 8 years, rate 121'-, per cent to 20 per cent. Steam en gines, from 4 to 6 years, 16% per cent to 20 per cent. Generators and motors, 8 years, 12% per cent. Printing machinery, 7 to 10 years, rate 10 per cent to 14 per cent. Type, 15 to 20 per cent. Refrigerating machinery, 6% per cent. Textile machinery, 6 to 15 per cent. Typewriters, 20 to 33% per cent. Autom obiles (passenger), 3 years 33% per cent. Trucks, 5 to 7 years, 14 per cent to 20 per cent, according to whether they are light trucks or heavy trucks. A light truck will usually outlast a heavier truck. Steam vessels, 4 per cent ; lake vessels, 3 per cent; sailing vessels, 3 per cent. Furniture in your own house can not be depreciated ; it is personal, not a business expense. Depreciation of equipment, how ever, should be on the basis of the reasonable life of the asset as shown by the experience of the taxpayer. In a few hundred words it is pos sible only to skim the surface of bankers’ tax problems. I have men tioned the ones which I have found to be most common. Even a cur sory review of your tax transactions along these lines may yield you a material saving by enabling you to correct any errors and thereby fore stall penalties and interest charges. Examiner (questioning applicant for life-saving job ) : ‘W h a t would you do if you saw a woman being washed out to sea?” Applicant: “ I’d throw her a cake of soap.” E xam iner: “ W h y a cake of soap ?” Applicant: “ T o wash her back.” — Siren. W ho Is Y o u r B rok er? BANKER 187 O u r B o n d K n o w le d g e an d E x p e r ie n c e Is at Y o u r C om m and Our service is more than just simply buying and selling bonds. Every bond we offer for sale has been purchased outright by us, and Every bond has been subjected to careful analysis and in vestigation. When the question comes up— “ Which bond shall we buy?”— let us help you. Write J. S. Corley, Mgr. Investment Dept. THE IOW A LO A N AND TRUST CO. - BANK DES MOINES, IOWA High Grade Investment Securities Railroad Bonds Public Utility Bonds Industrial Bonds Municipal Bonds Brokaw Company Investment Securities 105 South La Salle Street Chicago Edward J. Kelly, Iowa Representative DES M O IN E S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 188 THE N O RTH W ESTERN BANKER Foreign Trade and Travel By sending representatives abroad to study the post war con ditions of foreign countries, as well as adding all the experience and observation available here at home with reference to your requirements in connection with your foreign trade and foreign travel, we have established our FOREIGN DEPARTMENT in the minutest detail, so there is probably no service you could find in any other city or port that is not available at the FIRST NATIONAL BANK in St. Louis. Largest National Bank W est of the Mississippi to at Serve C ommerce H ome and THE NATIONAL BANK NEW YO 214 Broadway T ru st D ep a rtm en t S a fe D e p o s it V a u lt s F o r e ig n E x c h a n g e D e p a r t m e n t Securities D ep a rtm en t C r e d it D e p a r t m e n t Serving Financial Institutions Since 1856 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 June, 1922 THE N O RTH W ESTERN BANKER 189 The Power of Interest On January 18, 1897, a man in California loaned another Californ ian one hundred dollars at 10 per cent interest per month. As the money had not been re paid, a short time ago he brought suit. The Superior Court figured it out and handed down a judgment for the principal with compound in terest. The amount of the judgment was $304,840,332,912,685.16. That hundred dollar investment was made twenty-five years ago. Nowadays most thoughtful people are willing to accept a somewhat lower rate of interest, and are satis fied with an estate smaller than three hundred trillion dollars. In fact, a few hundred billion or even a million or two is not so bad for a start. The main thing is to begin to save. Compound interest will do the business, and it is surprising to note how little you need put aside to accumulate very considerable sums of money in twenty-five years at 6 per cent interest— the only real safe rate. For example, supposing a man wishes to accumulate One Million Dollars in twenty-five years. He pays his bond or mortgage company $1,452.20 per month. The company sells him bonds at 6 per cent com pound interest, and in twenty-five years the man has an even million tucked away in mortgages, with an income of $60,000 per annum— $5,000 per month. Of course, some peo ple do not need a million, but are sat isfied, say, with a half million, which can be obtained by monthly savings of $726.10. A quarter million is comparatively simple— $363.05 per month does the trick. Accumulating one hundred thousand dollars is such an easy trick that it does not even give the ordinary business man a chance to practice self denial— $145.22 per month for twenty-five years accumulates One Hundred Thousand Dollars at the end of the period. The trouble with most of us is that we have no definite plan in life. W e all want money, but most of us never get ourselves organized to save it. Begin today to save your money. You have no idea how much better you will feel now and hereafter. Keep away from specula tion. D o not try to get rich over night. The sure way,, the safe way, the only way is steady, consistent saving via the compound interest table.— “ Interest” (Cleveland D is count Co.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis When\bur Customers Need Financing Business concerns frequently seek their banker’s advice when contemplating a bond issue. Public officials likewise look to local bankers to aid them in financing public undertakings. In such matters, the banker is well fitted to help plan the financing, but he may not be prepared to handle the under writing and distribution of the bonds. W e are always glad to have bankers consult us about such problems. The benefit of our long experience in under writing corporation and public bond issues is offered to banks without any obligation whatever being incurred. W e value the opportunity to be of ser vice in the making of a bond issue in which a bank may be interested, fully as much as we do the opportunity to submit offerings for the investment of the bank’s ow n funds or for resale to its customers. A sk us for proof of this when the occasion arises. ____________________________________________________________________________________________________F E '1 4 _________ HALSEY, S TU A R T <5c CO. INCORPORATED C H IC A G O N EW Y O R K 2 09 S. La Salle Street 14 Wall Street D E T R O IT M IL W A U K E E Ford Building 1st W is. Nat’ l Bk. Bldg. Burns Brothers Move Burns Brothers Company, well known investment banking house of Des Moines, who had to move from their former offices, 500 Walnut Street, due to the fire which de stroyed the old Clapp Building, are now permanently located at 313 Fifth Street, ground floor, formerly occupied by the Des Moines Trust Company, in the heart of the finan cial district. They have redecorated, installed marble fixtures and new equipment BOSTON 10 Post Office Sq. ST. L O U IS Security Building P H IL A D E L P H IA Land Title Building M IN N E A P O L IS Metropolitan Bk. Bldg. throughout, and have one of the most attractive investment banking houses in the middle west. This company is rapidly forging to the front as dealers in Iowa muni cipal bonds, stocks and mortgages and are thoroughly equipped to sup ply banks with information on secur ities, to investigate companies and suggest suitable investments for bank funds. A good man’s character is the world’s common legacy.— Whittier. 190 T HE N O RTH W ESTERN BANKER Advantages of Bonds as Country Bank Investments By Arthur C. Tuohy Bond. Officer, Mercantile Trust Company of San Francisco H E consideration of bonds as an investment for country banks should, it seems to me, be viewed from three distinct as pects: First, why a country bank should invest its funds in bonds ; sec ond, what sort of bond investments to make ; and, third, how to purchase and subsequently care for such in vestments. W h y should a country bank buy bonds? The very nature of a bank’s business compels the placing of its funds in a wide variety of financial enterprises in order to adhere to that fundamental principle of scattering the risk. Granting this, it would seem that a bank, to operate with the greatest degree of security on this scale, should devote some por tion of its resources beyond the purely local needs of its community to the essential field of bond invest ments. Generally speaking, bonds are classed as a bank’s secondary re serve. And since, if properly se lected, their ready marketability en titles them to this reputation, we have, in this, one of the first impor tant reasons for a country bank’s employing its funds in bonds to an extent commensurate with its own particular situation. W hile a bond may not net him the best return, and also while it may of its nature seem foreign to him, yet the banker may find it his most valuable friend when he looks through his various classes of paper for something to discount or liquidate quickly. Another rea son for considering the investment in bonds is tbe exceptional security possible to obtain in this class of paper when issued under suitable re strictions, by reputable borrowers, be they municipal, corporation, or government. W ith the bonds now established as a standard and safe means of raising capital for prac tically every development or enter prise of size, the possibilities of con servative investment in this field are manifold. The first obligations of our established corporations, and of our states, cities, counties, and their political subdivisions, offer today one of the safest and simplest ways of employing capital for a fair return of interest. The banker need not limit his in vestments, and probably when buy T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ing on a large scale should not so limit them, to purely local fields, though here, it seems to me, lies his first choice and safest path. The securities of our oldest communities and business of the East, because of their sound and substantial char acter and ready market, have much in their favor as investments and should be included in any broad pol icy of bond-holding. The same principle of dividing the risk should be followed in adopting a policy of bond investment. Municipal bonds, since they afford so high ,a degree of valuable features of tax exemption, should perhaps be the first consider ation. W hile the return is smaller from this class of bonds, yet to vary ing extents, depending upon numer ous factors entering into the com pu tation of income taxes, this class of bonds will sometimes yield an ecpial or greater return than the taxable corporation investments. W hen con sidering the latter type in order to insure ready marketability or col lateral use, only the largest and best names should usually be selected. Generally speaking, as suggested be fore, the shorter maturities, ranging roughly from a few months to about five years in duration, are to be given the preference, even at a lower interest return, if necessary. By keeping to this rule, the bank’s funds are more accessible, and a more fre quent turnover, such as it requires for its changing conditions, is ac quired. Then, too, an approaching maturity frequently prevents the necessity of forced liquidation at a possible loss in a dull market. T o illustrate this point of the advis ability of holding short-term invest ment as against long-term, let us see the effect of a rise in interest rates from, say, 6 per cent to 7 per cent, such as took place a year or two ago. The decline in the price of a threeyear bond bearing 6 per cent to a 7 per cent basis would amount to slightly less than 3 per cent. In other words, we should witness a drop from 100 to about 97jks- But suppose this same 6 per cent bond had twenty years to run. The de cline in this case would amount to almost 11 per cent, or, in other words, a drop from 100 to about 89. Such fluctuations are exactly what we have observed in recent years, June, 1922 and they indicate most forcibly the value of adhering to the shorter ma turities as a general policy of invest ment for a country bank. Of course, there are exceptions to this rule, when, with interest rates again drop ping as we have seen in the last year, the greatest demand is for the long term exceptionally high - yielding bonds. Such a rare market condi tion gives this type of security a su perior position in the market from the standpoint of convertibility and price. But this condition is unusual, and we are now fast approaching the normal market again, where the older fundamental principles of in vestment are once more to be ob served. T o consider the third point: The method of purchasing and selling is extremely important. The country bank, distant as it is from the finan cial centers, is necessarily reliant upon the advice of others in the first instance and upon general news in the second instance, when making investments in projects outside its own community. The banker’s first business is naturally to meet the needs of his own constituents, and with his attention and interest fas tened there he usually has little time or opportunity to investigate at length the subject of bond invest ments. This, then, necessarily obliges him to impose considerable confi dence in others whose distinct busi ness it is to invest in securities and to procure investments for others. Extreme caution is imperative in choosing the proper connections in this line. W hile tbe country bank need not secure all its bonds through a single source, yet it will do well to make a constant and close affiliation with a strong security house or bank which specializes in the purchase and sale of conservative invest ments. The service which such an institution can render is a real vital one and does much to protect the country banks to the end that their investment in bonds may become a safe and profiable policy. The bond that is suited to the needs of one bank may not be the best investment for another; the proportion of in vestment in municipal as against corporation bonds is a varying quan tity between banks ; the substitution or trading of one bond for another is often advisable in the face of everchanging conditions: these are but a few of the investment problems which are satisfactorily solved with the application of the counsel avail able from the reliable investment banker. June, 1922 THE N O RTH W ESTERN 191 BANKER IOWA MUNICIPAL BONDS ARE FREE FROM ALL TAXATION, BOTH STATE AND FEDERAL INCOME TAX W h en a S ch ool I s Built We Buy and Sell — A road constructed, a water-works system or an electric lighting plant installed, the debt created is an obliga tion, payable by taxes, against all the property in the school district, county or town. S A F E T Y O F P R I N C I P A L , the first consideration in any investment, is absolute in an IOWA MUNICIPAL BOND. Good times or bad, taxes must be paid. And as TAXES ARE SURE, TAX-SECURED BONDS, BOTH PRINCI PAL AND INTEREST, ARE CERTAIN TO BE PAID WHEN DUE. IO W A City School F OR T H E B A N K ’S O W N A C C O U N T or for your clients’ surplus funds, no other investment has as many desir able features as IOWA MUNICIPAL BONDS. County W e own and offer at all times, Iowa School, County, Town and Drainage Bonds, maturing in from one to twenty years. Every bond we offer has been purchased outright from the issuing municipality and the legality of the issue has been approved by competent attorneys in every case. Drainage Write for list of current offerings. to banks. Liberal concessions BONDS Ringheim, Wheelock & Co. IOWA NATIONAL BANK BLDG. Des Moines -- Iowa IOWA MUNICIPAL BONDS ARE FREE FROM ALL TAXATION, BOTH STATE AND FEDERAL INCOME TAX https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 192 THE N O RTH W ESTERN BANKER June, 1922 THE OLD COLONY BUILDING T enth and Grand, Des Moines N E W HOME of ©lb Colony i^tate IBonb Company Successor to Old Colony Bond and Mortgage Company DE S M O I N E S E. G. RANDALL S. G. MOORE P re sid e n t V ic e -P r e s id e n t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis L . D. ROSS S e c r e ta r y N. G. FERRING M a na ger june, THE 1922 N O RTH W ESTERN BANKER 193 CANADA AND THE UNITED STATES A department to encourage a greater knowledge and better understanding of Canada by the bankers of the American Middle West Co-operative Marketing of Year’s Wheat Crop Is Vital Topic By S. C. Newton Canadian Editor Northwestern Banker S O N E might expect with July the first so close at hand, the Canadian W est these days is largely preoccupied by a discussion of crop prospects. W hat leisure is not devoted to a discussion of the size of the wheat crop of 1922 is usually devoted to weighing, pro and con, various schemes for the cooperative marketing of the com ing crop, and the question of freight rates. And, so far as can be judged at this early date, reports from all parts of the west indicate that acreage will be increased this year, and if the weather is only reasonably good, the crop of 1922 will be larger than that of 1921. But remembering their sad experi ences of the past two years, the Cana dian grain growers are not for this reason allowing themselves to be de ceived into b.elieving that a large crop will spell prosperity for them and the Canadian W est. Their eco nomic education has progressed be yond that point. Big crops without adequate markets and the lowest possible freight rates are, they ap parently believe, no cause for undue optim ism ; poor markets and low prices, when combined with high freight rates, leave little for the grain grower. A And so it comes about that the three grain growing Canadian prov inces are being rocked by an agi tation for the resurrection of the socalled wheat board, that organiza tion which during the closing years of the war handled the marketing of the Canadian wheat crop. Not de terred in the least by the fact that this request has been refused by the dominion government on the ground that such a step would be unconsti tutional, the farmers of the west are demanding that the wheat board in some form or other be reestablished by the governments of Manitoba, Saskatchewan and Alberta. Coop erative marketing they insist they must have, if not by means of an organization supported by the d o minion governments, then the provin cial governments will have to do. The western grain grower is appar ently determined that some govern ment organization will buy his grain from him this fall and that, faced by the loss of a large part of the Am er ican market, he will not be com pelled to face the uncertainties of the Europe trade unaided. Naturally enough compulsory co operative marketing of the wheat crop with government aid is being bitterly opposed in the east. It was largely the opposition of the business Winter Sports in Canada https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis interests of the country that per suaded the King administration in Ottawa to turn down the western request that the wheat board as it was constituted during the war be resurrected. The business' men of the country do not favor any fur ther interference with business on the part of the dominion govern ment. W ith the spectacle of the Canadian railroad problem before their eyes, it is hardly to be ex pected that they would think other wise. Yet in spite of their opposi tion to government supported co operative marketing schemes they frankly admit the difficult position of the western Canadian grain grow er and state their willingness to sup port at least morally private noncompulsory co-operative marketing plans. W hile apparently the dominion government has decided to regard this quesion of co-operative market ing of the wheat crop as closed so far as it is concerned, the west shows no disposition to so regard it. More will probably be heard in the Cana dian W est of the matter before many weeks are out. W hether the provin cial governments of the three grain growing provinces can be induced to support a co-operative effort to mar ket the wheat crop it is difficult to 194 T H E say. Their experience with paternal istic schemes have not been very en couraging during the past few years. The powerful farmers’ organizations may force their acquiesence but that is doubtful. A t this time it would seem most likely that eventually any co-operative marketing of the Cana dian wheat crop will have to be un dertaken by the farmers or the farm ers’ organizations themselves. The question of freight rates is, of course, one which is very closely allied to the marketing problem which faces the Canadian grain grower. The Canadian railways dur ing the war period raised their rates far above the pre-war level. During the war the farmers of the Canadian west, like their cousins to the south of the international line, made no ob jection to their high rates; it was wartime, prices were high, and the market readily absorbed the in creases in the freight charges made by the various railways serving the Canadian W est. But with the price slump of 1920 the situation changed. The farmers could no longer regard the high freight rates with indiffer ence. The distance between the cost of production and the price the farm er received for his grain was no long er great enough to provide for the high freight rates and a reasonable profit. So the Canadian farmer at N O RTH W ESTERN BANKER once began to demand that the rail ways reduce their rates. This demand found expression finally in a concerted attempt by the farmers’ organizations of the Cana dian W est aided and abetted by the business men this time to force the Canadian Pacific Railway to live up to the so-called Crow’s Nest Pass agreement of 1897. This demand the Canadian Pacific Railway is now op posing. The Crow’s Nest Pass agreement, it appears, was an agreement signed between the dominion government and the Canadian Pacific Railway Company in 1897, in which the rail way in return for certain concessions agreed to maintain its freight rates at a level from 25 to 50 per cent be low the level at which they at pres ent stand. The dominion govern ment during the war suspended this agreement until July 1, 1922. The dominion government, or its representative in this matter, the Dominion Railway Commission, in whose charge the rate making func tion of the dominion government rests, is therefore faced by the necessiy of adjusting this whole question of railway rates as soon as possible. And there is every reason to believe that it appreciates the full importance of any decision it makes. For while the interests which de June, 1922 mand lower freight rates have con centrated, apparently for tactical purposes, their attack on the C. P. R., their demand for a resurrection of the Crow’s Nest Pass agreement is obviously a “ test case.” If the Canadian Pacific is compelled to lower its rates, even to only approx imations of the level of the agree ment of 1897, the national railways will be called upon to follow suit. And such a step, while desirable, no doubt, from the point of view of the western farmer, is hardly de sirable from the point of view of a government operating a national railway system which annually piles up a deficit of some $70,000,000. The Canadian railway problem is one which will tax the skill of the present administration in Ottawa to the utmost and apparently not the least difficult part of the whole prob lem will be the placing of freight rates at a level which will enable the railways of the country to earn something on their “ overhead,” but which will not mulct the western farmers of their profits. Reaction They say that the price of paper is still way up so they’ll probably go back to making shoes out of leather now. — Michigan Gargoyle. Nationwide Ser vice Ba s e d Upon T h e Gr e e n e Idea by hrmgmg opportraittetoÄ who supply THE GREENE IDEA H.V GREENE COM PANY -IN C O R P O R A T E D 25 HUNTINGTON AYE., BOSTON, MASS. Y O R K -5- P H I L A D E L P H I A CL, E V E L A N D —D EN 'VER.—S E A T T H E A N D 8© OTHER. P R IN C IP A L CITIES THROUGH TH E U N IT E D S T A T E S A N D C A N A D A . NOTICE: STO C K O R BO N D ISSUES OO IN A N Y ST A TE E D SUCH ISSU ES H Æ / E TH E FULL CO' A popular Canadian winter sport https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis June, 1922 THE N O RTH W ESTERN BANKER 195 What Is the Boy Power of Your Bank? By R. Fullerton Place Editor Mid-Continent Banker HE other evening at a dinner of the St. Louis chapter of the American Institute of Banking I sat next to a young man from one of the smaller towns in southern Illi nois. In answer to an inquiry he told of his membership in the chapter, of the classes he was attending and the benefits he derived from them. The boy explained that six of the young men in his bank were members of the chapter, and how the expenses of the course were paid by the bank. Tickets to the dinner were supplied by the president of the bank. His auto mobile took the young men to the hotel. With pride in his voice the boy next to me said, “ Our president’s car and the chauffeur are outside waiting to take us home when we are ready.” There was no oratory in the state ment, but the eloquence was unmis taken when the boy added, in a posi tive tone: “ W e have some president at our bank.” If I should go to this president and ask him the question, What is the boypower of your bank? the chances are he could not tell me. Then if I should tell him that he is the central figure in a thrilling romance in his bank, he would laugh at the idea. It would take but a moment, how ever, to turn his mind into romantic channels, for he would be told that he is a hero and all about him in his bank are hero-worshippers. He would real ize for the first time possibly that the boys in his employ worship him in a way that he had not thought of before. They know his history. They know he started out as a poor boy and that he fought his way to the presidency of a bank and to a position of wealth and influence in the community. But best of all they realize that because he was poor and did not have the advan tages of education, he appreciates what education means to them. There is a twelve-cylinder president in that little bank in southern Illinois and he is taking the grades on high because he is developing a maximum o f boypower every hour o f the day. On the business side of banking an audit is an important thing. Laws re quire examinations and audits, but there the law stops. On the boy side of banking an audit is even more important. But laws cannot enforce it or even point the way. It must be voluntary. T https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis What does such an audit involve ? It starts with the boy’s name on the pay roll and it does not stop until it takes an inventory of his home. It checks the boy’s habits, it lists his re sponsibilities, it balances his hour of rest and recreation and it places a value on his attempts at advancement. What does such an audit reveal ? It opens up the opportunity for personal contact with the boy, for helpful ad vice, and for encouragement. It R. FULLERTON PLACE paves the way for loyalty, it furnishes the power to generate enthusiasm and it builds a bank from within. The bank that can show a wellbalanced statement of resources and liabilities in terms o f boypower is due for life membership in the Clearing House o f Suc cess. A well-known banking institution in the South has a plan for keeping in touch with its employes, their habits and home life. A few weeks ago an investigation was made of two young men in the bank. It was known that they were spending too much money. The investigation revealed that one young man has the drink habit. Be cause of the high cost of liquors, his appetite is an expensive one. Up to the present time his habits have not interfered with his efficiency in the bank, but the officers know his time is limited. His place will be taken by another soon. The other young man is also spend ing beyond his means, but the quiet in vestigation by the bank uncovered a far different story. The second boy is the sole support of a widowed mother whose health has become impaired. Doctors have been called in and the expense has mounted high. Officers of the bank are taking steps to make it possible for the boy to place his mother in a hospital where she can be cured. Diplomacy and tact will be used and the embarrassment of char ity will be avoided. A good clerk will be saved to the bank, his mind will be relieved of a load of worry, and sus picion brought about by his spending will be cleared away. Recently the president of a large city bank decided to hold a contest. Prizes were offered for the best ideas on how to improve the bank. The contest was open to all. One of the leading prizes went to a young boy, in a minor clerical posi tion, who suggested that the blotters placed on the counters for the use of customers be reduced in size. For years the blotters had been 12 inches long and four inches wide. Every night these partially used blotters were thrown away and new ones supplied. The boy suggested a small, convenient blotter. The suggestion was adopted and the bank’s blotter has been re duced one-third. This is but a sample of the sugges tions that came from the boys because their president had asked them for ideas. The blotter saving meant little to the bank in expense, but it was worth much in the discovery of a boy whose head was working as well as his hands. The boys in a bank are sprouts for future officers. Some, more vigorous and hardy than others, will develop in spite of neglect and the indifference of their surroundings. Others need just a little guidance and encourage ment to make them equally as valu able. What is 'the boy-power o f your bank? You can tell by lifting the hood and getting acquainted with the delicate parts in your banking ma chinery. Place a friendly hand on the throttle and watch the en gine respond. Remember, you are dealing with human mechan ism that has no power-limit. THE 196 N O RTH W ESTERN June, 1922 B A N K E R INDEX TO ADVERTISERS A A i n s w o r t h , Col. L. W ............................... 8 A b e r d e e n N a t i o n a l B a n k .........................138 A m e r i c a n B a n k P r o t e c t i o n C o . . . . . . 155 A m e rica n C om m ercia l and Savings Bank .......................................................... 15 A m e r i c a n F i x t u r e C o . . ........................... 164 A m e r i c a n L i t h o g r a p h i n g C o ...................130 A m e r i c a n L i v e S t o c k I n s u r a n c e C o . 102 A m e r i c a n M o r t g a g e a n d S e c u r it ie s C o ...................................................................... 178 A m e r i c a n F i r e R e i n s u r a n c e C o ........... 82 A m e r i c a n S e c u r i t y C o .............................107 A t l a n t i c N a t io n a l B a n k .......................... 139 15 B a lla r d , H a s s e t t C o ..................................108 B a n k e r s A c c i d e n t I n s u r a n c e Co. . . . 1 7 7 B a n k e r s S u p p ly C o ................................... 112 B a n k e r s T r u s t Co., D e s M o i n e s . . . . 51 B a n k e r s T r u s t Co., N e w Y o r k ........... 150 B a n n e r m a n & Sons, F r a n c i s ..............112 B e c h t e l & Co., Geo. M ............................ 68 B is h o p , B r i s s m a n C o ...............................110 B l a c k h a w k N a t i o n a l B a n k .................. 101 B r i t t o n Co., C. W ........................................107 B r o k a w & C o .................................................I®7 B r u n d a g e & H e v e n e r . .............................. 10/ B u r n s B r os. Co. ..........................................l ° d F i r s t N a t io n a l B a n k , D a v e n p o r t ........ 71 F i r s t N a t io n a l B a n k , D u b u q u e ............ 102 F i r s t N a t i o n a l B a n k , D u lu t h ................. 155 F i r s t N a t io n a l B a n k , M a s o n C ity . . 96 F i r s t N a t io n a l B a n k , M i n n e a p o l i s . . .152 F i r s t N a t i o n a l B a n k , O m a h a .................144 F i r s t N a t io n a l B a n k , St. L o u i s ...............188 F i r s t N a t io n a l B a n k , S i o u x C i t y ........ I l l F i r s t N a t i o n a l Ban k, S t o r y C it y . . 59 F i r s t N a t io n a l B a n k , W a t e r l o o ........... 114 F i r s t Sta te S a v i n g s B a n k , A b e r d e e n . 142 F i s h e r C o ..........................................................162 F r i n k , I. P .........................................................158 G G ir a r d N a t i o n a l B a n k ............................ 160 G o r d o n , V a n e T ine C o ............................. 80 Great W estern A ccid en t Insurance C o ............................. 64 G r een Co., H. V ........................................... 194 G u a r a n t y L i f e I n s u r a n c e C o .............. 84 G u th ri e, W m .................................................. 108 II H a ls e y , S tu a r t & C o .................................189 H a n c o c k Mut. L i f e Ins. Co., J o h n . 176 H a w k i n s M o r t g a g e C o ..............................1JJ H o l l e y Son s Co., L. W ............................. 63 H o m e S a v i n g s B a n k , D a v e n p o r t . . . . 74 H o m e S a v i n g s B a n k , D e s M o i n e s . . . 95 C Call Geo. C. . ............................................... 129 C a n a d ia n P a c i f i c R a i l w a y s ............. . . . 1 1 2 C a p ita l C it y S ta te B a n k ...........................132 C a p i t o l H ill B a n k .......................... J C ed a r R a p i d s L i f e I n s u r a n c e C o . . . . 151 C e d a r R a p i d s N a t i o n a l B a n k .............. 52 C ed a r R a p i d s S a v i n g s B a n k ............... 63 Central Iow a J o in t Stock Land B a n k ............................................................ Central N ational F ire Insurance C o .................................................................... I •0 C e n t r a l T r u s t Co., D e s M o i n e s ........... 88 C e n t r a l S ta te B a n k , D es M o i n e s ------ 65 C h a p m a n B r o s ................................................129 C h a se N a t i o n a l B a n k .............................. 156 C h a t h a m & P h e n i x N a t i o n a l B a n k . . 54 C h e m i c a l N a t io n a l B a n k ......................... 55 C h i c a g o T r u s t C o ........................................ °o C itiz e n s N a t i o n a l B a n k ............................ 105 C itiz en s T r u s t a n d S a v i n g s B a n k , A.berdeen .....................................................lob C itiz e n s T r u s t an d S a v i n g s Bank ............................................... 74 Davenport C it y N a t i o n a l B a n k , C l i n t o n ......... ' - 96 C le v e la n d D i s c o u n t C o ..............................j ° 4 C o llin s S e r v i c e ....................................... . . . 1 5 1 C om m ercial N ational Bank, W a t e r lo o .................................... 113 Conn ecticut M utual L ife Insurance C o ..................................................................... 178 C o n t in e n t a l an d C o m m e r c i a l B a n k s 60 7 C o r n E x c h a n g e N a t i o n a l B a n k ........... C r a d d ic k , H. .. ............................................. 67 IJ D a k o t a N a t i o n a l B a n k .........................13 6 D a k o t a T r u s t and S a v i n g s B a n k ------140 D a v e n p o r t S a v i n g s B a n k ....................... 85 D a v i d s o n ’ s ................................................... D es M o in e s D u p l i c a t i n g C o ...................15b D e s M o in e s L i f e a n d A n n u i t y C o . . . 10 D es M o in e s N a t i o n a l B a n k .................. 90 D e s M o in e s R u b b e r S ta m p W o r k s . . . 66 D e s M o i n e s S t o c k E x c h a n g e .............. 91 D r o v e r s N a t i o n a l B a n k ......................... °b D u b u q u e N a t i o n a l B a n k ..........................105 E E l l i s & H o l l a n d .......................................... 66 E qu itab le L ife A ssu ra nce S ociety of the U. S. A ................................................. E q u i t a b l e T r u s t ' C o . o f N e w Y o r k . . 182 E r n s t a n d E r n s t ......................................... 131 F F a r m e r s B o n d an d M o r t g a g e C o . . . . 180 F e d e r a l P r e s s e d S teel C o r p . . . . . . . . • 58 F e d e r a l S u r e t y C o ....................••76 an d 77 F i r s t J o i n t S t o c k L a n d Ban k, C h iF i r s t N a t i o n a l B a n k , B u r l i n g t o n . . . . 95 F irst N ational Bank, C h icago J F i r s t N a t i o n a l B a n k , C o u n c i l B lu r t s .. 1 0 2 s Indiana L im eston e Q u a rrym en ’ s A s s o c i a t i o n .....................................................198 Inter-Sta te Business M en’ s A ccid en t A s s o c i a t i o n .............................................. 174 I n t e r - S t a t e S u r e t y C o .............................. 143 I n s u r a n c e Co. o f N o r t h A m e r i c a . . . . 171 I o w a F a r m C r e d it C o r p o r a t i o n ......... 56 I o w a H o m e s t e a d ...................................... 89 I o w a L i t h o g r a p h i n g Co. I n s e r t . . . . 60 I o w a L o a n a n d T r u s t C o . . . .15 a n d 187 I o w a N a t i o n a l B a n k , D a v e n p o r t . . . . 78 Io w a National Bank, Des M o in e s .. ...........................................119, 120, 121, 122 I o w a N a t i o n a l F i r e I n s u r a n c e C o . . . 168 I o w a S ta te I n s u r a n c e C o ........................116 I o w a S ta te T r a v e l i n g M e n ’ s A s s o c i a t io n ...................................................... 98 I o w a T r u s t a n d S a v i n g s B a n k , D es M oines ...................................................... 4 I r v i n g N a t i o n a l B a n k ............................. 53 Jaeger M anu facturing C o .................... 128 K Knauth, Nachod & K u h n e . 98 L a w y e r s ’ P a g e ............................................110 L e a c h & Co., A. B ....................................... 186 L e a v i t t an d J o h n s o n N a t i o n a l B a n k 5 L e a v i t t a n d J o h n s o n T r u s t C o ............ 183 L i n c o l n N a t i o n a l B a n k ............................ 155 L i n c o l n N a t i o n a l L i f e I n s u r a n c e C o .175 L ive S tock E x c h a n g e N ational Bank o f C h i c a g o ............................................... 57 L i v e S t o c k N a t i o n a l B a n k , O m a h a . . 147 L i v e S t o c k N a t i o n a l B a n k , S io u x C it y ..............................................................1°2 L l o y d - T h o m a s C o ........................................ 6 L o n d o n , J o i n t C it y a n d M id la n d Bank ........................................................... 167 L y t l e C o ............................................ 48 a n d 49 L y t t o n S a v i n g s B a n k ............................. 13 3 M M a r s h a l l t o w n S ta te B a n k .................... 91 M c N a m a r a Office S u p p ly C o .................164 M e c h a n ic s a n d M e t a ls N a t i o n a l B a n k 56 M e c h a n ic s S a v i n g s B a n k ....................... 64 M e r c h a n t s L o a n a n d T r u s t Co., C h i c a g o ................................................. 11 M erchants N ational Bank, B u r lin g t o n ................................................................112 M erchants N ational Bank, C ed ar R a p i d s ..................................... 104 M e r c h a n t s N a t i o n a l B a n k , O m a h a . . 148 M id la n d M o r t g a g e Co., C ed a r R ap ids.181 M id la n d N a t i o n a l B a n k ..........................154 M i d - W e s t S ta te B a n k .............................. 110 M i n n e s o t a L o a n a n d T r u s t C o ............ 155 M is s o u r i S ta te L i f e I n s u r a n c e C o . . . 88 M u s c a t i n e Sta te B a n k ............................. 88 M u t u a l T r u s t L i f e I n s u r a n c e Co. . . . 97 ^ N N ational A m erica n L ife Insurance C o ......................................................................116 N a t i o n a l B a n k o f C o m m e r c e , St. L o u i s ........................................................... 108 N a t i o n a l B a n k o f th e R e p u b l i c . . . . 54 N a t i o n a l C it y B a n k o f C h i c a g o .........140 N a t i o n a l C ity C o ........................................1 5 8 N a t i o n a l P a r k B a n k o f N e w Y o r k . 188 N a t i o n a l S h a w m u t B a n k ........................100 N e u m a n n & Co., A r t h u r H . .124 a n d 125 N e w Y o r k T i t l e a n d M o r t g a g e C o . . 183 N o r t h e r n T r u s t C o .................................. 9 N o r t h w e s t D a v e n p o r t S a v i n g s B a n k 74 N orth w estern N ational Bank, M in 3 n e a p o l i s ............................... N o rth w estern N ational L ife In s u r a n c e C o ........................................................ 4 N o r t h w e s t e r n P a p e r G o o d s C o ......... .157 N o r t h w e s t e r n S ta m p W o r k s ................. 156 O Old C o l o n y Sta te B o n d C o ..................... 192 O m a h a N a t i o n a l B a n k ............................. 146 O m a h a P r i n t i n g C o ................................... 110 O v e r s t r e e t Co., J. W .................................156 F P a c k e r s N a t i o n a l B a n k .........................149 P a in e , W e b b e r & C o ............................... 149 P e o p l e s S a v i n g s B a n k .............................. 115 P eoples Trust and S avings Bank, C lin t o n .......................................................109 P i c k e t t , C h a r le s E .................................... 62 P i t t s b u r g h , D e s M o i n e s S teel C o . . . 126 P o lic y h o ld e r s ’ N ational L ife In s u r a n c e C o ......................................................... 139 R R a n d , M c N a l l y C o .....................................112 R a n d a ll & Co., E. G .................................. 99 R e d O a k N a t i o n a l B a n k ..........................131 R e g i s t e r L i f e I n s u r a n c e C o ................ 81 R h o d e s , W a l t e r H ..................................... 147 R i n g h e i m , W h e e l o c k & C o ................... 191 R o v a i U nion M utual L ife Insurance C o ..................................................................... 170 S St. P a u l S ta m p W o r k s ............................ 156 S c o t t C o u n t y S a v i n g s B a n k ................ 83 S e a b o a r d N a t i o n a l B a n k , N e w Y o r k 12 S e c o n d N a t i o n a l B a n k , D u b u q u e . . . . 132 S e c u r i t y F i r e I n s u r a n c e C o .................. 72 Security Inv estm ent and M o rt g a g e C o ..................................................................... 142 S e c u r i t y L o a n a n d I n v e s t m e n t Co., 97 D e s M o i n e s .......................... S e c u r i t y N a t i o n a l B a n k , S io u x C it y 55 S e c u r i t y S a v i n g s B a n k ......................... 97 S e c u r i t y T r u s t a n d S a v i n g s B a n k . 116 S e c u r i t y N a t i o n a l B a n k , S io u x F a l l s . 137 S ilze r B r o s ...................................................... 45 S i o u x F a l l s N a t i o n a l B a n k ................... 141 S io u x F a l l s S a v i n g s B a n k ..................... 134 S i o u x N a t io n a l B a n k ............................. 95 S ta te C e n t r a l S a v i n g s B a n k ................. 108 S ta n ley , H e n d e r s o n C o ............................ 178 S ta te L i f e I n s u r a n c e Co. o f I o w a . . 172 S t o c k Y a r d s N a t i o n a l B a n k , S outh O m a h a ......................................................... 150 T Thom pson U U n io n B a n k o f C a n a d a ............................ 157 U n i o n T r u s t Co., C h i c a g o ....................... 47 U n it e d S ta te B a n k .................................... 61 U n it e d S ta te s N a t i o n a l B a n k ...............147 U n i v e r s a l L i f e I n s u r a n c e C o ................ 98 U p h a m B r o s ................................................... 98 V V a l l e y N a t i o n a l B a n k ............................. 94 V it z t h u m , K. M ........................................... 50 W W a h k o n s a H o t e l ....................................... 108 W a l t e r s Co., C h a r le s E ........... 53 a n d 167 W a t e r l o o B a n k a n d T r u s t C o ............ 106 W e s t e r n L i f e I n s u r a n c e C o .................. 92 W h i t e , P h i l l i p s C o ..................................... 197 Y Younker B r o s ................................................ 127 Z a iser’s ........................................................... 165 Z ^ltlllllHllUUUIIlUIIHIlIUHIlIIUIllllHllHlllIIIIHllIlllllHI)lllIini!HlllllIllllllHllllllllllIlllUllllllllll1UI!!llllllUlinilllllllllllllllllllllIllt!lílll!IIII!lllllill!!lini[l|tl!ll!li|ílll'lllll!|¡l....................................................................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ..............................................187-112 .........................................................uiiwiiTOiiiiiiiiiiiiiiiiiniF June, 1922 THE N ORTH W ESTERN BANKER B ........ 197 □ Personal Bond Service W e Offer T he members of the W h ite Phillips Com pany offer you personal bond service when purchasing- Iow a M unicipal Bonds. Iow a Municipal Bonds Free from State, County, School or C ity Taxation Exem pt from Federal Incom e and Surtax Everywhere W rite for our Co-operative Service Plan thru which Ioiva hankers are adding to their net profit account ^ vWTE-Phi U / p ^ INVESTMENT B A N K E R S --------- a ''O 6 ------• O ur years of experience in the handling of M unicipal Bonds adequately equips us to give you at all times the very best and latest information concerning M unicipal Bonds, which are very attractive be cause of their tax-exempt fea tures. PU TN A M BLDG. D G E O .W H 1 T E . P r es a v E N P O R T, 1O W A B .A P H I L L I P S . V P r e s . We will consider it a genuine pleasure to serve you while you are in Davenport. The White-Phillips Company IN V E S T M E N T B A N K E R S 609 Putnam Bldg., Davenport, Iowa □ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis □ THE N O RTH W ESTERN June, 1922 BANKER Third National Bank Building, Scranton, Pa. After being remodeled. Duckworth Brothers, Architects. W h e n Planning Buildings Prepare for Future Expansion When the owners of the Third National Bank Build ing at Scranton found it practicable to remodel and enlarge their Indiana Limestone building, they pur chased the adjacent site, moved the old building to the center of it and added two wings to the old front. Third National Bank Building, Scranton. Before being remodeled. The illustration shows the old and new buildings. The original bank front is that central portion of the present front, composed of four columns and the pedi ment above. The present building is a tribute to the Architects’ ingenuity. Booklets on Indiana Limestone will be mailed on request. Architects and owners who select Indiana Limestone do so with the assurance that the quarries from which this stone is obtained will be in operation years hence, producing the same stone, when alterations or addi tions to the original structure are required. This fact is of the utmost importance when recommending and selecting a building stone. IN D IA N A L IM E S T O N E Q U A R R Y M E N ’S A S S O C IA T IO N Box 791, Bedford, Indiana Metropolitan Service Bureau, 489 Fifth Avenue, N ew York City H E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis N A T I O N ’ B U I L D I N G STONE
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