Full text of The Northwestern Banker : June 1940, Forty-Fifth Year, Number 635

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A s k y - lin e v ie w o f M in n e a p o lis , w h e r e M in n e s o ta b a n k e r s
w ill m e e t o n J u n e 5-7. S ee p a g e 11.

THE MINNESOTA CONVENTION PROGRAM


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Page 11

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Our widespread network of correspondent hanks through­
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handling of your business.
We cordially invite correspondent accounts from bankers

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who wish prom pt service in the handling o f drafts and
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SERVICING A LL IOWA

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N A T IO N A L B A N K
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OFFICERS

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J ames E. H amilton , Chairman
S. E. Coquillette, President
H. N. B oyson, Vice President
R oy C. F olsom, Vice President
Mark J. Myers, V. Pres. & Cashier
George F. Miller, V. Pres. & Tr. Officer
Marvin R. S elden, Vice President
F red W. S m ith , Vice President
J ohn T. H amilton II, Vice President
R. W. Manatt , Asst. Cashier
L. W. B roulik, Asst. Cashier
P eter B ailey, Asst. Cashier
R. D. B rown, Asst. Cashier
0. A. Kearney, Asst. Cashier
S tanley J. Mohrbacher, Asst. Cashier
E. B. Zbanek , Building Manager

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N o r th w e s te r n B a n k e r, p u b lis h e d m o n th ly b y th e D e P u y P u b l i s h i n g C o m p a n y , I n c ., a t 555 7 th S tr e e t, D e s M o in e s , I o w a .
S u b s c r ip tio n , 35c p e r c o p y , $3.00 p e r y e a r. E n t e r e d a s s e c o n d - c l a s s m a t t e r a t th e D e s M o in e s p o s t office. C o p y r ig h t, 1940.


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1$9. .

£>ince

W h e n th e F r i e n d l y C e n t r a l N a t i o n al B a n k first o p e n e d its
d o o r s — th is i n s t i t u t i o n h a s s t e a d i l y i m p r o v e d its serv ice to
t h e b u s i n e s s a n d c o m m e r c e ot a g r o w i n g ci ty a n d state.
I O W A ’S F R I E N D L Y

BANK

CENTRAL NATIONAL BANK
AND TRUST COMPANY
MEMBER


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FEDERAL

DEPOSIT

INSURANCE

CORPORATION

4

REASONS WHY BANKS PREFER
LA MONTE SAFETY PAPERS
PROTECTION

PRINTING SURFACE

G O O D W I L L VAL UE |
RECOGNITION
PRESTIGE
INDIVIDUALITY
ACCEPTANCE
/

V

WRITING

SURFACE

PR INT ING SURFACE
DURABILITY
UNIFORM QUALITY^

L ithographers a n d Printers k n o w that the q u a l­
ity of their w ork d e p en d s la r g e ly u p o n the
printing su rface of the p a p er. T h ey reco m m en d
La M onte S a fety P a p ers b e c a u s e th e y k n o w
th ey w ill b e a b le to turn out ch eck s a n d other
n e g o tia b le instrum ents that w ill d efy alter­
ation a n d of w h ich e v e r y o n e ca n b e proud.

G EORGE LA MONTE & SON, NUTLEY, N. J.

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5
PROTECTING

r

I N V I S I B L E

V A L U E S — NO.

13

REIT IISERMOE
PAYS when Fire affects Income
I1 IR E never stops at material damage.

other source must replenish this sudden

■ It strikes d eep er— into the web o f

cessation o f incom e, unless Rent Insur­

values that thrive invisibly w ith in

ance is carried. T his tim ely coverage

physical structures. Loss o f rentals fo l­

m ends the gap in current incom e, lost

lo w in g fire often means draining the

after fire forces the occupant out.

lifeb lood o f a trust, or even affecting

Let our local agent discuss w ith you

the security o f a loan. Fire coverage is

the advantages o f Rent Insurance.

essential, yet it does not provide pro­

H e w ill also describe other forms

tection against loss o f rents. W h en flee­

w ritten by THE HOME to protect

in g tenants are exp elled by fire, some

invisible values.

T H U 1 H A M L insurance
1 II Pi 11 U lYl II COMPANY

NE W Y O R K
FIRE — AUTOMOBI LE — MARI NE

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and

ALLIED

LINES

OF

INSURANCE

6

BETTER FIXTURES —
BETTER E MP L O Y E S
C 3 O O D bank fixtures are a tonic to
employe morale. They increase the effi­
ciency of both officers and employes and
create pride and loyalty throughout a bank.
Banks are finding it profitable to modern­
ize in fixtures as well as routine equipment
and we suggest now is the time for you to
remodel your banking home.
LET FIS HER SO LV E Y OUR R E M O D E LIN G PROBLEM

Having our representative call and tal\ the matter over
will not place you under any obligation to buy from us.

9», Fis

B A N K

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h e r

F I X T U R E

C

o m p a n y

H E A D Q U A R T E R S

•

•

•

J U N E

19 4 0
• • •

IN THIS ISSUE
Editorials
A c ro s s th e D e sk f r o m th e P u b lis h e r
C LIFFO RD DE PUY
Publisher

R A L P H W. M O O R H E A D
Associate Publisher

H EN R Y H. H A Y N E S
Editor

J. STUART D A V IS
Associate Editor

555 Seventh Street,
Des Moines, Iowa
Telephone 4-8163

Feature A rticles
Frontispiece .................................. ...................................................................................
The Minnesota Convention..............................................................................................
Minnesota Convention Committee..........................................
Business Prospects in Minnesota Are Promising....................... -..................— ......
News and Views-........................ ........................................-.................Clifford De Puy
Public Service and Profit Through Consumer Financing...............John Burgess
The South Dakota Convention................ .................................-.... Henry H. Haynes
Pictures of the South Dakota Convention...................................................................
Financing of Treasury Obligations..............................
The North Dakota Program ............................................................................
Legal Questions and Answers....... ............................. ....................................................
National Defense Measures F irst in W ashington.......................Paul F. Lavezzo

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13
14
15
16
IT
18
19
20
22

Insurance
W h y I n s u r a n c e M en O p p o se C o m p u ls o ry A u to m o b ile I n s u r a n c e ------ J. W. G unn 25

Bonds and Investments
T h e M o n th ’s M a r k e t M a n e u v e r s ............................................ — ............. Jam es H. Clarke 27
Io w a I n v e s tm e n t B a n k in g N e w s ..................................................................................................... 30
N e b r a s k a I n v e s t m e n t B a n k in g N e w s ....................................................................................... - 35

State Banking News
N EW Y O R K O FFICE
Frank P. Syms
V ice President
505 Fifth Ave.

Suite 1 202

Telephone MUrray Hill 2-0326

M IN N E A P O L IS O FFIC E

N e b r a s k a N e w s ............................ ..............................
O m a h a C le a r in g s ............................................
L in c o ln L o c a ls ...................................................
S o u th D a k o ta N e w s ...... ..........................................
M in n e s o ta N e w s ............................ ............................
T w in C ity N e w s ...............................................
N o r t h D a k o ta N e w s .............................................
M o n ta n a N e w s ..................................... ....................
T h e M o n ta n a C o n v e n tio n ...........................
Io w a N e w s ....................................................................
N e w s f r o m D e s M o in e s............................ —
P i c t u r e s o f t h e Io w a G ro u p M e e tin g s.

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Jam es M. S u th erla n d
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43
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47
53
57
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65
67

J. A . Sarazen
Associate Editor
Telephone Hyland 0575

Savings and Loan
S e v e n K e y s t o P u b lic R e la tio n s .

Gerald S . B eskin 77

The Directors* Room
A F e w S h o r t S to r ie s to M a k e Y o u L a u g h

M EM BER
Audit Bureau of Circulations
Financial Advertisers Association


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Across the Desk
From the Publisher

Net Profits of
Banks 30 Per Cent
r*
l
• im n
Greater in 1939

A ccording to a recent

report made by the Fed'
eral Deposit Insurance
Corporabon> 1939 was

the best year for net profits in banking business
history since the deposit insurance program w ent
into effect w ith the exception of 1936.
“ N et profits, before dividends, says the cor­
poration, “ of the insured com m ercial banks of
the country were 30 per cent g reater in 1939 th an
in 1938 and, w ith the exception of 1936, were
g reater th an for any other year of deposit in su r­
ance. The 1939 increase in net profits resulted
from higher net earnings, higher n et recoveries
and profits on securities, and low er net chargeoffs on loans.
“ F lu ctu atio n s in net profits since the inception
of deposit insurance have been substantial from
y ea r to year. They have reflected, in large p art,
fluctuations in profits and losses on securities, aris­
ing from the efforts of m any banks to supplem ent
o p erating income by speculating on price changes
in the bond m arket, chiefly in high grade bonds.
In 1939 recoveries on securities and profits on se­
curities sold exceeded charge-offs on securities by
66 million dollars, as com pared w ith 12 million
dollars in 1938.”
The n et cu rren t operating earnings of all in ­
sured banks increased in 1939 450 m illion dollars.
The im provem ent in gross earnings was largely
a ttrib u tab le to an increase of 22 million dollars
in in tere st discount on loans.
Income from this source w hich continued to
account for nearly one-half of the b a n k s’ gross
earnings, was 3 per cent higher th an in 1938, and
13 per cent higher th an in 1935.
Income from service charges on deposit ac­
counts in 1939 was about 2 ^ tim es the am ount
rep o rted for 1933.
In te re st paym ents paid on deposits decreased
about 6 per cent in 1939, and constituted less than


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20 per cent of cu rren t operating expenses, com­
pared w ith 30 per cent in 1934.
W hatever m ay be ahead of us in the U nited
States in these tu rb u len t days, one th in g is certain
th a t the banking stru ctu re is in a sound, su b stan ­
tial and strong position.

The Jones-W heeler B ill is
being opposed by the A m eri­
can B ankers Association be­
cause th ey feel, and rig htly,
so, th a t it would foster governm ent-ow ned and
politically controlled institutions.
S ecretary H enry A. W allace, in a recent speech,
argued fo r the bill because he w anted to reduce
the in terest ra te s on farm m ortgages.
Charles H. M ylander, vice president of the
H untin g to n N ational B ank of Columbus, Ohio,
and a m em ber of the F ed eral Legislation Commit­
tee of the A. B. A., in answ ering S ecretary W al­
lace said :

Opposed to
Government
Owned Banks

“ W e oppose th is bill because th e A m erican
B a n k e rs A sso ciatio n desires th a t th is c o u n try sh all
co n tin u e to h av e p u b lic ly -c h a rte re d an d g o v e rn ­
m e n t-re g u la ted , b u t p riv a te ly ow ned, local b a n k ­
in g in stitu tio n s, so th a t our people sh all n o t be
com pelled to a p p ly to a system of g o v ernm entOAvned, p o litic a lly -c o n tro lle d in stitu tio n s w h e n ­
ever th e y n eed or d esire c r e d it.”

C hester C. Davis, a m em ber of the B oard of
G overnors of the F ed eral Reserve System, also
testified th a t: “ If the principle of the JonesAVheeler bill is adopted and extended, th en the
priAmte com m ercial banking system w ould ten d
to become a th in g of the p a s t.”
T hus a g a in th e A m erican b a n k in g system is
faced w ith a d d itio n a l g o v e rn m e n t com petition,
AA^hich sh o u ld be opposed on ev ery h an d .

If the U nited States is to continue to function
as the last g reat dem ocracy in the Avorld, it m ust

9

cease to centralize the control of banking in W ashington.
P riv a te in itiative and p riv ate capital have m ade
this the g reatest nation in th e w orld, and will con­
tin u e to do so if they are given a chance.
As we prep are to spend
billions for W orld W ar N um ­
ber 2, it is perhaps w orth
while to stop for a m inute
and th in k w h at W orld W ar N um ber 1 cost us and
w h at we m ight have done w ith th a t m oney if it
had been expended for peaceful p u rsu its and edu­
cational endeavors.
N icholas M urray B utler, president of Columbia
U niversity, has given us some startlin g figures
when he points out th a t: “ The W orld W ar, all
told, cost— a p a rt from 30 m illion lives—400 bil­
lion dollars. AVith th a t m oney we could have
b u ilt a $2,500 house, furnished it w ith $1,000 w orth
of fu rn itu re , placed it on five acres of land w orth
$100 an acre, and given this home to each and
every fam ily in the U nited States, C anada, A us­
tralia, E ngland, AVales, Ireland, Scotland, F rance,
Belgium, G erm any and Russia. AVe could have
given each city of 20,000 in h ab itan ts and over, in
each of the countries nam ed, a 5 m illion dollar
lib ra ry and a 10 m illion dollar university. Out
of w h at was left we could have set aside a sum at
5 p er cent th a t would provide a $1,000 y early sal­
ary fo r an arm y of 125,000 school teachers and a
like salary for another arm y of 125,000 n u rse s.”
Thus, as we launch into a spending program
for AVorld AATar N um ber 2, we can only point out
how much b e tte r off civilization would be if the
m oney could only be used for construction ra th e r
th a n destruction.

As W e Spend
Billions
for W ar

P resid en t Roosevelt says
Analyzing the
he w ants us to build 50,Airplane Industry

000 airplanes.
C harles A. L indbergh says : “ If we desire peace,
we need only stop asking for w ar. No one wishes
to a ttac k us, and no one is in a position to do so.
As long as A m erican nations w ork together, as
long as we m aintain reasonable defense forces,
th ere will be no invasion by foreign a irc raft, and
no foreign navy will dare to approach w ithin
bom bing range of our coasts.”
W h atev er our ultim ate destiny in the w orld
m ay be, we are definitely com m itted to the m anu­
fa ctu re of m ore airplanes at this time, and an
analysis of th a t industry, according to one a u th o r­
ity, is as fo llo w s:
“ There is m uch confusion as to the statu s of the


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airplane industry. A thorough inquiry reveals
the follow ing to be substantially correct:
1. AS OP M arch 31, 8,000 planes were on order
and not delivered. Of these, slightly more
th an 4,000 were for export, about 3,200 for
A m erican defense, and the rem ain d er com­
mercial.
2. SINCE M arch 31, the Allies have placed
orders for 4,600 planes, of various types.
The orders are confined to five companies.
There are 31 ofher plants which could fill
orders. Non-use of them is explained by the
Allies as due to the fact th a t the five com­
panies are the only ones m aking the kin d of
planes they w ant. W ashington, on the other
hand, em phasized th a t m any of the 31 plants
could produce the special types required,
under a licensing and ro y alty system.
3. CONSTRUCTION of planes requires from 3
to 12 m onths, depending on the type. F o r in ­
stance, some planes can be b u ilt w ith 1,200
w ork-hours and others require 90,000 workhours.
4. STATEA1ENTS as to ‘productive capacity
a t this or th a t date are guesses and are based
on such d ata as floor space, available labor
and the ra te of flow of orders. ’ ’
There is no question about our ability to p ro ­
duce airplanes given a reasonable am ount of tim e
to enlarge p lants and personnel.
O ur first job, of course, is to get all the air­
planes we can to the Allies, and then tak e care
of our own requirem ents here.
In a year w hen so much
em phasis is p u t on who the
candidate shall be for P resi­
dent for either p arty , it is
highly im p o rtan t th a t we do not forg et to elect
the rig h t Congressm en who m ake up the 435 mem­
bers of the n ex t House.
I t m ust alw ays be born in m ind th a t Congress
m akes our laws and th a t the P residen t m erely
adm inisters such law s as Congress m ay enact.
Jo h n R aym ond McCarl, form er com ptroller gen­
eral of the U nited States, emphasizes the im por­
tance of electing the rig h t Congressmen when he
says : ‘ ‘ The fact is th at your beliefs can be tra n s ­
lated into effective political action fa r more effec­
tively in your vote for Congressm an and Senator
th a n for P resid en t of the U nited S ta te s.”
Therefore, we suggest th a t you give careful a t­
tention to the prim aries and see th a t the right
Congressm an is on the tick et from your district
and then vote rig h t in the fall.

Elect the
Right
Congressmen


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11

Minnesota
Convention
Minneapolis, June 5 - 7

THE P R O G R A M

A. B. L A T H R O P
P r e s id e n t M in n e s o ta B a n k e r s A s s o c ia tio n

H E 1940 convention of th e M in­
nesota B an k ers A ssociation, one of
th e larg est g ath erin g s of its kind
in th e m iddlew est, w ill be held in
M inneapolis on Ju n e 5-7, inclusive,
w ith h e a d q u a rte rs at th e H otel Nicol­
let. Indications are th a t th e u su al
large atten d an ce record w ill be m ain ­
tain ed th is year.

T

C onvention com m ittees w ho have
m ade th e a rra n g e m en ts and w ill look
afte r th e details are, G eneral Com­
m ittee, L. O. Olson, chairm an, M idland
N ational B ank and T ru st Company;
O. H. Odin, M arquette N ational Bank;
J. J. M aloney, F irs t N ational B ank
an d T ru s t Com pany; and D. E. Crouley, N o rth w e ste rn N ational B ank and
T ru st Com pany. Mr. M aloney is also
ch airm an of th e B anquet Com m ittee:
D. E. C rouley is ch airm an of th e Gold
C om m ittee and G enevieve M. N evin,
N o rth w e ste rn N ational, is ch airm an of
th e W om en’s E n te rta in m e n t C om m it­
tee.
In speaking of th e com ing conven­
tion, A. B. L athrop, p resid en t of th e
M innesota B an k ers A ssociation, and
vice p resid en t of th e F irst N ational
B ank, St. Paul, says:

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“P lans have been com pleted for th e
fifty-first an n u al convention of the
M innesota B ankers A ssociation to be
held Ju n e 5th to 7th, inclusive, in
M inneapolis.
“M innesota has at this tim e 686
banks. . D uring th e p ast th ree y ears we
had an average atten d an ce at our an ­
nu al conventions of well over 1,500
reg istered delegates. W e believe th is
m akes us one of th e largest if not the
largest of state bank conventions.
“T his y e a r’s program , including n a­
tio nally know n and local speakers as
w ell as ou tstan d in g e n te rta in m e n t fea­
tu res, has been w orked out. W e are
looking forw ard to th e u sual large a t­
tendance at our forthcom ing an n u al
m eeting.”
The program , as arran g ed by Secre­
ta ry W illiam D uncan, Jr., prom ises
to be one of u n u su al in terest, and is as
follows:
Wednesday, June 5
Golf T o u rn am en t a t Golden V alley
Golf Club; tee off not later th a n
12:30.
Wednesday Evening, June 5
7:30 P. M.
Pre-C onvention Sm oker — M ain ball­

room, H otel Nicollet; Vice P resid en t
K. O. Sattre, presiding.
R eport of N om inating Committee.
A w arding of Golf Prizes.
E n tertain m en t, (U nusual C h aracter).
Sm orgasbord D utch Lunch.
Thursday Morning, June 6
Devoted to Com m ittee M eetings.
Council M eeting.
(Giving th e delegates am ple tim e to
visit and shop.)
Thursday Noon, June 6
L uncheon for Ladies—M innesota T er­
race—H otel N icollet
D uring the luncheon th ere w ill be a
Style Show, followed by a R eading
and draw ing of door prizes.
Thursday Afternoon, June 6
2:00 P. M.
Invocation—Rev. J. A. O. Stub, P asto r
C entral L u th eran Church, M inneapo­
lis.
P re sid e n t’s A nnual A ddress — A. B.
L athrop, Vice P resid en t F irs t N a­
tional, St. Paul.
A. B. A. Elections.
A ddress—R obert M. H anes, P resid en t
of A m erican B ankers A ssociation,
and P resident, W achovia B ank and

12
T ru s t Com pany, W inston - Salem,
N orth- Carolina.
A ddress—“The A eroplane and p a rt it
w ill play in our natio n al defense,”
P ro fessor Jo h n D. A kerm an, head of
th e d ep artm en t of aero n au tical en­
gineering, U n iv ersity of M innesota.
P ro fessor A kerm an w as a pilot in
the R ussian A rm y d u rin g th e W orld
W ar, and is considered an a u th o rity
on A ircraft and A eronautical E n g i­
neering.
Thursday Evening, June 6
6:30 P. M.
A nnu al B anquet—M ain Ballroom , H o­
tel Nicollet.
A ddress—“C u rren t E v e n ts,” G eneral
H ugh S. Johnson, Soldier, B usiness­
m an, L aw yer, O rganizer, Colum ist,
A d m in istrato r and A u th o r—a lead­
ing natio n al figure.
D ancing—Dick L ong’s O rchestra.

Friday Morning, June 7
10:00 A .M .
A ddress — “B anking a n d
S tates’
R ights,” W. S. E lliott, P resid en t of
B ank of Canton, Canton, Georgia,
and P resid en t State B ank Division,
A. B. A.
R eport of R esolutions Committee.
E lection of M. B. A. Officers.

To A ccep t Second Term
E m m ett F. Connely, w hose aggres­
sive and m ilitan t policy as presid en t of
th e In v estm en t B ankers A ssociation of
A m erica led th a t organization to adopt
an am bitious program of public infor­
m ation, has agreed to assum e direct
p ersonal charge of carry in g out th a t

a

program . He has consented to devote
his en tire tim e to th e u n d ertak in g as
ch airm an of the new ly created public
inform ation com m ittee, tak in g leave of
absence from his own business, th e
F irs t of M ichigan C orporation, of De­
troit, of w hich he is president.
T his w as announced follow ing th e
closing session of th e reg u lar sp rin g
m eeting of th e board of directors of
the association.
A t th e sam e tim e, it w as announced,
Mr. Connely has consented to his nom ­
in ation for re-election as p resid en t of
th e association. H is election, to ta k e
place at th e an n u al convention of th e
organization in D ecem ber, is consid­
ered a foregone conclusion in view of
th e unanim ous su p p o rt of th e business
for Mr. C onnely’s policies and adm in­
istra tio n of th e office.

Minnesota
Convention
Committee

L . O. O L S O N
C o n v e n tio n G e n e ra l C h a irm a n
J. J. M A L O N E Y
C h a ir m a n B a n q u e t C o m m itte e

D. E . C R O U L E Y
C h a irm a n G o lf C o m m itte e


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Federal Reserve Bank of St. Louis

O. H . O D IN
M e m b e r G e n e r a l C o m m itte e

G E N E V IE V E M . N E V IN
C h a ir m a n W o m e n ’s E n t e r t a i n m e n t

13

Business Prospects In
Minnesota A re

Promising

Statewide Survey Among Bankers Reveals Decided Optimistic Outlook
IN N ESO TA b ankers, w h en th ey
come to M inneapolis for th e ir
a n n u a l 1940 convention on
Ju n e 5th, should do so w ith th a t feel­
ing of optim ism w hich is alw ays re ­
flected in prospects for im proved b u si­
ness, as are noted in th e opinions ex­
p ressed below. T he re p o rts are based
on a recen t su rv ey m ade am ong b a n k ­
ers in a n u m b er of M innesota com m u­
nities. W e asked th em to tell us about
business conditions in th e ir com m u­
n ity and section of th e state, w ith re ­
sp ect to in d u strial, com m ercial, and
a g ric u ltu ra l activities, and th e ir replies
w ould indicate th e y are looking fo r­
w a rd to a v e ry favorable year. The
replies as p ublished below are as of
ap p ro x im ately May 10, and read as
follows:
Ee Sueur —J. T. P eterson, p resid en t
T he S tate B ank of LeSueur: On ac­
co u n t of th e v ery fine crops w e had
in 1939 b oth of corn and sm all g rains,
o u r farm ers have fed livestock to
a la rg e r e x te n t th is w in te r th a n g en ­
erally. W e have h ad sufficient snow
and rain fall d u rin g th e p ast few
m o n th s so th a t our soil conditions are
ideal. Cold w e a th e r late th is sp rin g
h as delayed pea planting, o therw ise
conditions are excellent.
“E v e ry th in g considered we could not
hope for an y th in g b e tte r at Le Sueur.
N ew car, tra c to r and farm m ach in ery
sales are considerably b e tte r th a n th e
p ast y ear or two. By reaso n of sale of
cars and tracto rs, o u r loans have in ­
creased as w e handle a lot of th is p a­
per. M erchants are doing a good b u si­
ness. Two or th re e new stores, includ­
ing groceries and general m erchandise,
have opened up h ere d u rin g th e p ast
n in e ty days.”
L ittle F a lls —A. J. F alk, cashier F irs t
N ational Bank: “Crop conditions look
v e ry favorable. C attle prices are high,
an d price of b u tte rfa t is fair, w ith p ro s­
pects of an increase. W e expect a
large en cam pm ent at Camp R ipley th is
sum m er. The to u ris t tra d e w ill be
large, and L in d b erg h ’s boyhood hom e
w ill be th e stopping place th is y e a r for
a n even larg er n u m b er of people. L it­
tle F alls has adequate h o tel facilities,
as w ell as p len ty of to u rist cabins.
T h ere is alw ays good fishing in our
lake h e re .”

M


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N ew U lm —E. A. Stoll, cashier, State
B ank of New Ulm: “T e rrito ry w en t in ­
to th e w in te r deficient in m oisture.
N orm al rain fall from now on should
prove sufficient. T en p er cent reduc­
tion in corn from last year, some in ­
crease in hay crops, p a rticu larly em er­
gency crops, such as soy beans; sm all
g rains to be about same; possibly an
increase in w heat. Indications are not
so good for sp rin g p astu res and dairy
production due to lack of m oisture;
low price of hogs in relatio n to feed
prices w ill tend to check farrow ings,
especially in th e fall; p o u ltry a p t to re ­
m ain constant. F a rm m achinery sales
im proved and g eneral business about
same. C onstruction w as excellent y ear
ago, an o th er good y ear is expected.”
P ip esto n e —W. R. Lange, cashier,
The P inestone N ational Bank: “Condi­
tions in th is com m unity a t th e p resen t
tim e are v ery good. M oisture condi­
tions are b e tte r th is spring th a n th ey
have been for a n um ber of y ears and
th e prospect of having a good crop is
encouraging.”
A lexan d ria — George E. B uscher,
executive vice president, A lexandria
State Bank: “W e are h appy to re p o rt
th a t we are going into spring w ith
m oisture conditions m ore favorable
th a n last year, m oisture com parison as
follows: 1939, 3.57 inches; 1940, 8.78
inches. C onditions as a w hole look
m uch m ore favorable.
“T here m ay be a little less corn
planted; otherw ise acreage w ill rem ain
th e same, w ith th e exception of flax,
w hich w ill have a little m ore acreage
in th is com m unity th a n last year.
T here is considerable farm m achinery
being sold according to th e records dis­
closed and from th e o p p o rtu n ity we
have to finance th e same. T here w as a
considerable carry-over of feed last
year, w hich gives our farm ers an op­
p o rtu n ity to increase th e ir herds, and
if prices w ill ju st h an g on, th e outlook
as a w hole is m uch better.
“W e look forw ard to an increase in
residential building as well as com m er­
cial building over last year, as last
y e a r’s m ark has already been equalled
in th e building program th a t has been
started.
“W e also look forw ard to a larger
to u rist trad e inasm uch as th is is one of

our p aram o u n t sources of income, be­
ing in th e h e a rt of th e ten thousand
lakes. The reason for looking forw ard
to an increased patronage is because of
th e foreign situ atio n and the u n fav o r­
able w eath er conditions in th e south
th is p ast season.
“All in all, business is up to some
ex ten t and we look forw ard to a bigger
and b etter y ear in 1940.”
B lue E arth —K. O. S attre, vice p resi­
dent and cashier, Blue E a rth S tate
Bank: “We learn th a t th e su g ar beet
acreage and th a t the sw eet corn and
peas acreage in our com m unity is larg ­
er th is y ear th a n last. Also th a t m a­
ch in ery sales and autom obile sales are
b e tte r th a n th ey have been th e last
tw o years.
“All crops have been planted in good
season and w ith th e excellent rain,
w hich we have ju s t had, crop prospects
a t th is tim e are n early ideal.
“H ow ever, sales of general m erchan­
dise on our M ain S treet have n o t been
as good as we had hoped b u t prospects
for im provem ent are v ery good.”
M ilaca —J. A. Allen, president, The
F irs t N ational Bank: “Com m encing
w ith 1937 a fte r th e severe d ro u th th a t
we had for a n u m b er of y ears here,
conditions a t M ilaca an d su rro u n d in g
te rrito ry have becom e v ery m uch b et­
ter. Crops have been reasonably good
and th e farm ers have increased th e ir
d airy herds considerably, th is being a
dairy country. H aving one of th e larg ­
est cooperative cream eries in th e state,
we produce a g reat deal of b u tte r here.
“The m erch an ts and business people
in tow n have enjoyed increased busi­
ness to som e extent. T he only d raw ­
back has been the low prices of farm
products and we are hoping, of course,
th a t th a t w ill be rem edied in th e fu ­
ture.
“Our own b anking in stitu tio n has in ­
creased in deposits every y ear about
$50,000. Local loans have tak en up th e
biggest sh are of our in v estm en t p ro ­
g ram so we are n ot carry in g a great
deal of outside in v estm en ts at p resen t
tim e. E arn in g s for th e b ank have been
satisfactory and w e are looking for­
w ard to even b e tte r conditions th an
we have had previously.”
(T u rn to page 47, please)

14

N e w s a n d V ie w s
OF

THE

B A N K IN G

W O RLD

By Clifford De Puy
ILITA R Y science, Soviet style, as
revealed by a R ussian Infantry

M

Manual:

“Do not touch an y th in g un n ecessa­
rily. B ew are of p re tty girls in dance
halls and p ark s w ho m ay be spies, as
w ell as bicycles, revolvers, uniform s,
arm s, dead horses and m en lying on
roads—th ey are not th e re accident­
ally.”
The sto ry goes th a t A dolf H itler had
his palm read by a Jew ish palm ist, and
she said: “Mr. H itler, you w ill die on
a Jew ish holiday.” “No, never, never,
n ev er,” cried Adolf. “Yes you w ill,”
replied th e palm ist, “because w h en ­
ever you die it w ill be a Jew ish holi­
day.”
D. W. B ates, p resid en t of th e N a­
tional A ssociation of S upervisors of
state b an k s and su p e rin te n d e n t of
banks in Iowa, is being u rg ed by m any
of his frien d s to accept a re a p p o in t­
m en t to his position, w hich expires
June, 1941, and providing such an ap ­
p o intm en t is agreeable to th e incom ing
governor.
It is possible th a t a petitio n m ay be
circulated am ong th e b an k ers of th e
state req u estin g th e n ex t governor to
reappo in t Mr. Bates, w hose record has
been a m ost satisfacto ry one.
Frank B. Y etter, fo rm er p resid en t of
th e Iowa B ankers A ssociation “took a
bow ” at the N ew ton m eeting. F ra n k
is now re p re se n ta tiv e of th e B ureau of
A nalysis of D avenport, w ho a re a n a l­
y sts specialing in tax, in su ran ce and
estate problem s.
S ecretary Frank W arner says, “T h at
th e gov ern m en t last y ear m ade $127,000,000 profits in post office m oney o r­
ders, w hile, on th e o th er hand, th ey
assessed th e m em bers of th e F ed eral
D eposit In su ran ce C orporation $163,000,000. T h u s th e g o v ern m en t m akes
profits on one h an d by com peting w ith
th e banks and tak es it aw ay on th e
o th er h an d .”

Over 7,400 b an k s in th e U nited States
now m ake personal loans.
D uring th e b a n k e rs’ convention a t
N ew ton, a special trip w as m ade
th ro u g h th e M aytag w a sh in g m achine
plant, but, as n e a r as we could tell,

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none of th e ban k ers seem ed to w an t to
“w ash any d irty linen.”
T he p lan t is now em ploying 1,200
m en, com pared w ith 2,700 th ree y ears
ago. Over 1,000 m achines are m an u ­
factu red per day, and w o rkers are paid
on a piece basis.
W. G. C. B agley, State T re a su re r of
Iowa, and p resident of th e Iow a B ank­
ers A ssociation 10 y ears ago, atten d ed
all of th e group m eetings th is year.
All of his b an k er friends an d m any
others, too, are saying that: “One good
term deserves an o th er.”

W hile our taxes are plenty high in
th is country, and th ey w ill probably be
higher, it m ust be rem em bered th a t 50
p er cent of th e total incom e of E n g ­
land, F ran ce and G erm any is going to
th e governm ent. Also, if we had th e
sam e percentage of debt in th e U nited
States th a t m ost of these countries
have, our national debt w ould be $148,000,000,000 instead of close to $45,000,000 , 000 .
P erry B. H endricks, vice presid en t of
th e U nited States N ational B ank of
Omaha, in m aking his final re p o rt of
th e N ebraska Group T rain, proved con­
clusively th a t ban k ers are not “hard
drinkers,” at least in 1939 only 3 boxes
of oranges, w hereas th is y ear 9 boxes
w ere req u ired to satisfy th e N ebraska
financiers in th e ir th irs t for orange
juice.
Charles B. M ills of Moline, Illinois,
w ho has spent the p ast 15 m onths in
H aw aii, has re tu rn e d to th e U nited
States. Mr. Mills has been located at
Schofield B arracks in H aw aii, and d u r­
ing his stay th ere m ade several side
trip s to Japan, China and th e P h il­
ippines.
R. H. Fayfield, vice presid en t of th e
E m p ire N ational B ank and T ru st Com­
p an y of St. Paul, in a recen t le tte r to
us said: “I have been a confirm ed read ­
er of th e N orthwestern B anker for
m an y years, a publication, w hich in
m y opinion, does an excellent job in
b rin g in g c u rre n t b anking new s of the
n o rth w e st to th e re a d e rs’ atten tio n ,
w ith o u t having to w ade th ro u g h a
m ass of irre le v a n t m aterial.”

C andidates for the position of second
vice p resid en t of th e A m erican B ank­

ers A ssociation to be elected at the con­
vention in A tlantic City th is fall in ­
clude Charles E. Spencer, Jr., p resid en t
of th e F irs t N ational B ank of Boston,
M assachusetts, and R u ssell G. Sm ith,
executive vice p resident of th e B ank of
A m erica, San Francisco, California.
The issue betw een these tw o m en
w ill be u n it versus b ran ch banking.
Mr. Spencer will have the su p p o rt of
u n it bankers, and because of th e con­
vention being held in th e E ast th is
year, th e resu lts should be definitely to
his advantage, and besides, New E n g ­
land h a sn ’t had an A. B. A. presid en t
since 1875.
The annual in terest hill on th e F ed ­
eral debt is c u rre n tly about $1,100,000,000. T his is a sizeable sum even in
these days of billion-dollar a p p ro p ria­
tions.
B. A. Gronstal, presid en t of the Coun­
cil Bluffs Savings Bank, m akes his
B uick buzz w hen he h its th e highw ay.
A t least he drove from Chicago to
Council Bluffs—500 m iles—th e o th er
day, in 10 hours, or from 7:30 a. m. to
5:30 p. m.
H is cruising speed w as “only 80 to
90 m iles p er h o u r.” T his rem inds us
of th e sto ry of th e fellow w ho w as a r­
rested for fast driving, and th e traffic
cop said to him , “I am not arre stin g
you for fast driving, b u t for driving too
slow .”
W illiam N. M itten, presid en t of The
S tephens N ational B ank of F rem ont,
N ebraska, in a recen t le tte r to u s said:
“The N o rth w estern B anker is a fine
publication and all of us here in th e
bank enjoy reading it v ery m uch.”
N orm an B. Shaffer, vice p resid en t of
th e C ontinental-Illinois N ational B ank
& T ru st Com pany of Chicago, and
V erne L. B artling, a ssistan t cashier of
the F irs t N ational B ank of Chicago,
celebrated th e ir w edding an n iv ersaries
on May 16th; w hile L aw ren ce A.
K em pf, a ssistan t cashier of th e N o rth ­
ern T ru st Com pany of Chicago, w as
one day later, or May 17th, for his w ed­
ding an n iv ersary .
R eginald B. F ig g e, vice presid en t
and cashier of th e G u aran ty B ank and
T ru st Com pany of Cedar Rapids, and
.1. M. H u tch in son , tru s t officer of th e
D avenport B ank and T ru st Company,
and a brother-in-law of Mr. Figge, to ­
g eth er w ith th e ir wives, are leaving
for a trip to F lorida and Cuba th is
m onth.
Cliff V. G regory, associate pu b lish er
of W allaces’ F arm er and Iow a Home(T u rn to page 69, please)

15

Public

Service

and

Profit

Through C O N S U M E R Financing

A

BOUT fifteen y ears ago some pio­
By John Burgess
n eers in consum er financing
Vice President
m ade th e ir appearan ce in b a n k ­
Northwestern National Bank and
ing circles. R oger Steffens, N ational
Trust Company
City B ank of N ew York, fo rm er new s­
Minneapolis
p ap er m an of vision and courage, w as
one of them . Those b an k ers w ho
stepped out and began to m ake in sta ll­
m e n t perso n al loans w ith o u t security
to non-depositors are en titled to a g reat ciples b u t n ot rules. W h at are those
deal of credit. By tria l and erro r, by
principles? H ere are some. T hey are
stu d y and analysis, th e y developed sci­ not easy to live up to and should be­
entific m ethods, and shared th e ir expe­ come as second n a tu re to the in stall­
rience w ith others, freely gave out m ent banker. R em em ber th a t these
specim en form s, helped w ith advice
an d encouragem ent. C ertainly, one of
th e m an y fine th in g s about th e b a n k ­
ing profession is its sp irit of coopera­
tion in th e in te re st of efficiency and th e
public good.
It is p e rtin e n t to say th a t an in stall­
m e n t loan d e p a rtm e n t is no place for
defeatism , for trouble dodgers, for
buck passers, or indifferent people, or
for ju s t plain or fancy laziness. T his is
a field in w hich good h a rd w ork, ap p ly ­
ing th e seat of th e p an ts to th e seat of
th e ch air and co n cen tratin g th e m ind
on th e problem a t h an d is w h a t really
counts.
Successful in stallm en t loaning comes
dow n to a question of solving tw o or
th re e fu n d am en tal problem s, one of
th e g re a te st of w hich is th e p ersonnel
problem . I am convinced th a t to m ake
a success in th is field req u ires a pecu­
lia r ty p e of m an or w om an, th e ty p e
w ith a touch of th e M essianic, w ho re ­
JO H N B U RG ESS
g ards his w ork as a m ission. Some­
tim es I th in k th a t w om en are b e tte r
ad ap ted to th is field th a n m en. F o r are principles and not rules. H ere they
one thing, it req u ires g re a t patience;
are:
g re a t kindliness and sym pathy. It re ­
1. D on’t urge people to get into debt.
q u ires a w ide experience and a broad
(This is difficult. A dvertising should
outlook on life and, of course, th e re
be restrain ed , tru th fu l and exact.)
m u st be firm ness coupled w ith tact.
2. D on ’t tell them it is easy to pay
Because of th e m an y devices used in
the m oney back. (It isn ’t. M uch ad­
m ak in g these loans, th e m any different
v ertisin g is to be criticized in th is re ­
k inds of loans w hich are handled, th e
spect.)
w ide v ariatio n in term s and conditions,
3. D on ’t d eceive the borrow er about
it req u ires a b an k er w ith a quick m ind,
w ith n ativ e shrew dness, p erh ap s a so rt the rate. (It is u n necessary and poor
policy.)
of a horse-trader.
4. Do n ot apologize foi* tim e-loan
T he n ex t m ost im p o rta n t problem is
th e developm ent of a sound general rates. (They are fair rates considering
the am ount of w ork involved.)
policy. I have trie d to c h a rt such a
5. Do not g lo ss over late fines. (E x ­
policy by in sistin g th a t a d ep artm en t
plain th a t th ey are necessary for dis­
should be conducted along sound prin-


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cipline and are not intended for rev e­
nue. See th a t the b o rrow er th oroughly
u n d erstan d s them .)
6 . Do not m ake loans on the strength
of a co-signor’s resp o n sib ility or be­
cause of the valu e of the collateral.

(This is a h ard one to live up to.)
7. Do not m ake loans for foolish pur­
poses. (The b o rrow er alw ays th in k s
th e purpose is sensible.)
Coupled w ith these sound principles
upon w hich th e d ep artm en t should be
operated, th e m anagem ent should re ­
ject all rigid rules, all preconceived
prejudices and approach each applica­
tion w ith an open and sym pathetic
m ind, determ ined to say “Yes” if pos­
sible, instead of try in g to find reasons
for tu rn in g a custom er away. To p re ­
serve th is a ttitu d e req u ires constant
vigilance.
L et us rem em ber th a t in stallm en t
buying or loaning is a condition and
not a theory. W hile it has had a
sta rtlin g increase in th e last decade,
qualified econom ists have not as y et
found it any m enace to our national
economy. Inform ed au th o rities place
th e to tal am ount of installm en t credit
of all kinds at about four billion dol­
lars, probably not m ore th a n 15 per
cent of th e total loans and investm ents
of all th e banks in th e country, and
b etter th a n 60 per cent of th is im pres­
sive sum is accounted for by autom o­
bile credit. In th e n ational picture,
therefore, it is no m enace to our econ­
omy. On th e o th er hand, a sh arp cu r­
tailm en t of the sam e w ould provide a
real th re a t to in d u stry and, after all,
is it not b e tte r for our people w ith
grow ing leisure to spend th e ir sub­
stance in th e acquisition of tangible
and w o rth w h ile p ro perty, equipm ent
or lu x uries ra th e r th a n to dissipate
th e ir funds on intangible and less
w o rthw hile objectives. It is a fact th a t
m illions of our people w ould n ev er
own an autom obile, w ashing m achine
or re frig e rato r b u t for in stallm en t b u y ­
ing.
Take th e m a tte r of cars as collateral
security. To th e superficial, loans on
cars are considered only as loans for
th e purchase of cars. A ctually, half
th e car loans th a t are m ade are n ot for
purchase b u t for necessitous borrow (T u rn to page 48, please)

16

The

South Dakota

Convention

Service Charges and Operating Costs Discussed at Watertown Meeting—
F. F. Phillippi Elected President— 1941 Convention to Be Held
In Black Hills

W

IT H final re g istra tio n stan d in g
at 351, m em bers of th e South
D akota B an k ers A ssociation, at
th e ir F o rty -n in th A nnual C onvention
held M ay 15 and 16 in W atertow n,
staged not only th e larg est m eeting in
h isto ry from an atten d an ce stan d p o in t
b u t also p resen ted an o u tstan d in g
p rogram and social events. E veryone
th e re said it w as one of th e best S tate
conventions th e y h ad ev er attended, so
it ’s orchids to S ecretary S ta rrin g for
his program , and th e sam e to W aterto w n b a n k ers and th e ir w ives w ho
sponsored th e social activities.
F. F. P hillip pi, cashier of th e D akota
S tate B ank at M ilbank, w as nam ed
p resid en t of th e A ssociation for th e
com ing year. H e filled th e office of
vice presid en t la st year, an d succeeds
W illiam C. R em pfer, P ark sto n , in th e
p re sid e n t’s chair. L. T. M orris, presi-

A T THE

By Henry H. Haynes
Editor

den t of th e F irs t Citizens N ational
B ank, W atertow n, w as elected to th e
post of vice president, and of course
George M. Starring w ill continue in the
office of secretary -treasu rer. Group
One nam ed L. L. la llib rid g e, p resident
of th e B urke S tate Bank, as a m em ber
of th e A ssociation E xecutive Council
for a th ree-year term , and C harles W.
C hristen, p resid en t of th e F irs t State
B ank, Roscoe, w as reelected to th e
executive Council from Group Six.
A t th e S tate A. B. A. election, R u ssell
Bard, cashier of th e H and C ounty
S tate B ank of M iller, w as reelected to
th e executive council to hold office

SO UTH

DAKOTA

P ic tu re d on th e opp o site p a g e a re a n u m b e r o f th o se a tte n d in g
th e a n n u a l m e e tin g o f th e S o u th D a k o ta B a n k e rs A sso c ia tio n ,
h eld re c e n tly in W a te rto w n . R e a d in g fro m le f t to rig h t, th e y
a re : 1— Mrs. C. H. L ockhart a n d Mrs. Orin Sam stad; a n d C. H.
L ockhart, vice p re s id e n t F i r s t C itiz en s N a tio n a l B a n k , a ll o f
W a te rto w n . 2 D. E. Crouley, a s s is ta n t c a s h ie r N o rth w e s te rn
N a tio n a l B a n k , M in n e a p o lis; D elko Bloem, vice p re s id e n t S e c u r­
i ty N a tio n a l B a n k , Sioux C ity, Io w a ; a n d R. A . Cihak, c a s h ie r
C om m ercial S ta te B a n k , W ag n e r.
3— E. J. D irksen, c a s h ie r
S e c u rity B a n k & T ru s t C om pany, M a d iso n ; C. A. Golden, vice
p re s id e n t N o rth w e s t S e c u rity N a tio n a l B a n k , D ell R a p id s ;
B. J. M cCartney, U. S. C heck B ook Co., Sioux F a lls ; a n d T. E.
P orter, a s s is ta n t c a sh ie r S e c u rity B a n k , W e b ste r. 4— E. F.
Bowm an, c a sh ie r C itiz en s B a n k , V e rm illio n ; J u d y W alrath,
W a te rto w n ; E. B. Lynch, J . M . D a v is & C om pany, M in n e a p o lis;
Jerry Nordberg, E . H . R o llin s & C om pany, M in n e a p o lis; a n d
R. M. W atson, e x e c u tiv e vice p re s id e n t N o rth w e s t S e c u rity N a ­
tio n a l B a n k , S ioux F a lls. 5— H arry Hardm an, R. F . C., M in n e ­
a p o lis; Oscar Brosz, vice p re s id e n t D a k o ta S ta te B a n k , T rip p ;
H . C. Gross, c a s h ie r B ow dle S ta te B a n k ; W. A . V olkm ann, a s s is t­
a n t c a sh ie r F i r s t N a tio n a l B a n k , M in n e a p o lis; a n d F. W. Bunday, c a sh ie r F a rm e rs & M e rc h a n ts B a n k , W e ssin g to n S p rin g s.
T. J. W arkentin, vice p re s id e n t F i r s t N a tio n a l B a n k , B r itto n ;
S. C. Y oung, m a n a g e r F i r s t N a tio n a l B a n k , G ro to n ; a n d B. R.
Laird, c a s h ie r S e c u rity S ta te B a n k , T y n d a ll. 7— S e a te d , Mrs.
T. E. Porter, W e b s te r; P aulin e P a v lik , B r itto n ; Mrs. D elko
Bloem, S ioux C ity ; Mrs. R. A. Cihak, W a g n e r; (s ta n d in g ) Mrs.
J. J. W arkentin, B r itto n ; Mrs. B. J. M cCartney, S ioux F a lls ;
a n d Mrs. H om er P eterson, O m aha. 8— R. B. Steven s, a s s is ta n t
c a sh ie r C itizen s B a n k , V e rm illio n ; E. E. E rickson, vice p re s i­
d e n t an d c a sh ie r T oy N a tio n a l B a n k , Sioux C ity , Io w a ; W . F.


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u n til th e com ing N ational C onvention
th is fall, and W illiam R em pfer w as
elected to th e sam e office for th re e
y ears follow ing th e ex piration of th e
term of Mr. Bard. T he A. B. A. vice
presid en t for South D akota w ill be
chosen by th e S tate A ssociation p resi­
den t a t a la te r date. L. C. F orem an ,
p resid en t Corn E xchange Bank, Elkton, has been filling th a t office du rin g
th e y ear ju s t past.
H . N. T hom son, vice p resid en t
F arm ers and M erchants S tate B ank,
Presho, w as nam ed as a m em ber of
th e A. B. A. n o m inating com m ittee,
w ith W illiam C. R em pfer as altern ate.
S tate vice presid en ts to head th e sev­
eral A. B. A. divisions w ere nam ed as
follows: N ational b an k division, A. W .
P o w ell, cashier R oberts C ounty N a­
tional Bank, Sisseton; Savings division,
(T u rn to page 45, please)

C O N V E N T IO N

K unze, vice p re s id e n t M a rq u e tte N a tio n a l B a n k , M in n e ap o lis.
9— A. T. H agen, p re s id e n t F i r s t S ta te B a n k , C la re m o n t; L. A .
Jacobson, c a sh ie r B ry a n t S ta te B a n k ; M. O. Grangaard ( s ta n d ­
in g ) v ice p re s id e n t F i r s t N a tio n a l B a n k , M in n e a p o lis; L. A. Lohr,
c a s h ie r F i r s t N a tio n a l B a n k , L a k e N o rd e n ; a n d A . J. Boeder,
c a s h ie r F a rm e rs N a tio n a l B a n k , E ste llin e . 10— L. C. Forem an,
p re s id e n t C orn E x c h a n g e B a n k , E lk to n ; H arry Ziemer, F e d e ra l
R e serv e, M in n e a p o lis; H. F. Anderson, a s s is ta n t c a s h ie r D euel
C o u n ty N a tio n a l, C lear L a k e ; Carl Fredricksen, p re s id e n t L iv e
S to c k N a tio n a l, S ioux C ity, Io w a ; C. C. Anderson, e x e c u tiv e
v ice p re s id e n t F i r s t N a tio n a l B a n k o f B la c k H ills, R a p id C ity ;
a n d T. E. W angsness, vice p re s id e n t a n d c a s h ie r F i r s t N a tio n a l
B a n k , G a rre ttso n .
I I — R obert M. H anes, p re s id e n t o f th e
A m e ric an B a n k e rs A s so c ia tio n ; a n d W illiam R em pfer, c a s h ie r
F i r s t N a tio n a l B a n k , P a rk s to n , a n d im m e d ia te p a s t p re s id e n t
of th e S o u th D a k o ta B a n k e rs A sso c ia tio n . 12— M. G. Anderson,
c a s h ie r B a n k o f C re sb a rd ; R. H. Seydel, c a sh ie r M enno S ta te
B a n k ; a n d A. F. L itz, v ice p re s id e n t D elm ont S ta te B a n k . 13—
N". T. W enge, s ta te a g e n t S t. P a u l M e rc u ry a n d I n d e m n ity Com ­
p a n y , A b e rd e e n ; B. F. Bam benek, v ice p re s id e n t F i r s t N a tio n a l
B a n k , S p rin g V a lle y , M in n e so ta ; a n d F rank Bram ble, s e c re ta ry tr e a s u r e r M id la n d N a tio n a l L ife In s u ra n c e C om pany, W a te rto w n . 14— N . G. Herm an, a s s is ta n t c a sh ie r P e o p les B a n k , C onde;
R. E. H assell, a n d M. B. Slaughter, v ice p re s id e n t, b o th o f F i r s t
N a tio n a l B a n k , R edfield; E arl B aertsch, c a sh ie r P e o p les B a n k ,
C onde; a n d M. J. Tw iss, c a sh ie r S e c u rity S ta te B a n k , D o la n d ;
a ll m em b ers o f th e S p in k C o u n ty C learin g h o u se A sso c ia tio n .
15— C. W. Quinn, v ice p re s id e n t, a n d C. P. S w ift, c ash ie r, b o th
o f C itiz en s S ta te B a n k , A rlin g to n ; C. A. P o tte r , c a s h ie r F i r s t
N a tio n a l B a n k , S e lb y ; a n d R. H. Jackson, c a s h ie r S e c u rity S ta te
B a n k , M c In to sh .


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18

Financing of TteC SU ty Obligations
C . J. Devine & Company Review Suggests That Supply of Negotiable
Treasury Obligations Might Be Reduced to Curtail Deficit
of th e u n ite d s ta te s
g o v ern m en t $4,000,000,000 deficit
w ith o u t recourse to th e open m a r­
k et for m ore th a n one-fifth of th a t
am ount in th e p ast calendar y e a r sug­
gests th e possibility th a t the supply of
negotiable tre a su ry obligations m ight
be actually reduced, especially if the
deficit w ere to be curtailed, according
to th e an n u al su rv ey published by C.
J. D evine & Co., Inc., specialists in
U nited States g o v ern m en t securities.
The 1940 edition review s th e tren d of
govern m en t financing last y e a r and
p resen ts data on U nited States tre a s ­
u ry and federal credit agency issues.
“The U nited States tre a s u ry ’s grow ­
ing independence of the open m ark et
for its cash req u irem en ts w as one of
th e o u tstan d in g developm ents of 1939
in tre a su ry finance,” th e su rv ey as­
serts. “W hereas in th e previous six
years m ore th a n tw o-thirds of th e
m oney needed to finance the deficit
w as obtained by public sales of nego­
tiable tre a su ry obligations, funds re ­
ceived from th is source in 1939 w ere
less th a n one-fifth of th e deficit re ­
quirem ents. Sales of savings bonds
alone supplied th e tre a su ry w ith m ore
cash th a n w as provided th ro u g h the
sale of m ark etab le securities.
“T re a su ry exp en d itu res of $9,454,-

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in a n c in g

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000,000 w ere m et p a rtly w ith th e $5,485,000,000 of rev enue and o ther gen­
eral and special account receipts, and
p artly , by th e use of $607,000,000 of
th e general fund balance, leaving a re ­
m ain d er of $3,362,000,000 to be su p ­
plied by o ther m eans. Of th is am ount,
sales of special obligations to th e so­
cial security funds accounted for m ore
th a n a billion dollars. A nother $767,000,000 came from sales of savings
bonds. A dditional n et receipts of $847,000,000 from tre a su ry accounts desig­
n ated as ‘T ru st A ccounts, In crem en t
on Gold, etc.’ reflected paym ents m ade
by governm ental agencies to the tre a s­
ury. The largest of such paym ents
w as m ade by th e R econstruction F i­
nance C orporation, w hich sold its own
obligations to obtain funds w ith w hich
to liquidate its indebtedness to the
treasu ry .
“The $1,750,000,000 of proceeds from
sales of special obligations and of sav­
ings bonds in 1939 reflects a steady
g row th in this type of financing. A
continued increase in borrow ing from
these sources or a reduction of th e
deficit to a figure sm aller th a n the
total am ount of m oney so obtained,
w ould leave funds available for the
re tire m e n t of open m ark et debt.
“T reasu ry financing operations d u r­

NET RECEIPTS OF THE
UNITED STATES TREASURY

ing th e y e a r included th e refu n d in g
of approxim ately 3y2 billion dollars
of tre a su ry notes. A bout tw o-thirds
of th e securities issued in exchange
consisted of m edium and long-term
bonds, th e rem ain d er of tre a su ry
notes. Upon the com pletion of th ese
operations, th e direct g o v ernm ent debt
m atu rin g w ith in five y ears co n stitu ted
a sm aller proportion of the to tal th a n
it had at any tim e since 1933. T his
change w as accom plished n o tw ith ­
stan d in g the increase in social security
obligations, all of w hich m atu re w ith in
five years. An additional $1,200,000,000 of g u aran teed debt w as refunded
by governm ental agencies. The Hom e
O w ners’ Loan C orporation’s exchange
of its called 2%’s for eight-year IV2 p er
cent bonds, callable in six years, ac­
counted for m ore th a n half of th is
am ount. The o th er refundings w ere
accom plished by the issuance of new
short-term securities.”
R eview ing the g overnm ent securi­
ties m ark et for the year, the su rv ey
states th a t th e relativ ely p rom pt re ­
covery of prices, follow ing th e seven
point decline on th e outb reak of th e
E u ro p ean w ar, to levels w ith in tw o
points of all-tim e highs, gave evidence
of the stre n g th of und erly in g forces
w orking tow ard low m oney rates and

T R U S T A C C O U N T S .,
ETC.

A L L S O U R C E S / BY F IS C A L Y E A R S
O PEN M ARK ET
O B L IG A T IO N S

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U N IT E D S T A T E S
SA V IN G S BOND S
S P E C IA L I S S U E S , ETi

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M IS C E L L A N E O U S
IN T E R N A L
REVEN UE

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IN C O M E T A X

O T H E R G EN ERA L
AND
S P E C IA L A C C O U N TS*

m
* N e t e x p e n d itu re s o f “ T r u s t A c c o u n ts e t c .” in 1933 o ffs e t p a r t o f
r e c e ip ts fr o m s a le s o f o p e n m a r k e t o b lig a tio n s .
— C h a r t C o u rte s y C. J . D e v in e & C o., In c .


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Federal Reserve Bank of St. Louis

t N e t r e d u c tio n o f th e a m o u n t o f o u ts ta n d in g o p e n m a r k e t o b li­
g a tio n s o ffse t a ll o f r e c e ip ts “ T r u s t A c c o u n ts e t c .” a n d p a r t o f
r e c e ip ts f r o m s a le s o f “ U . S. S a v in g s B o n d s, S p e c ia l Is su e s e tc .”

19

The N o rth D a k o ta Program
Minot to Be Scene of 1940 Annual Convention on June 14 and 15
C. W ATTAM , secretary of th e
N o rth D akota B an k ers Associ♦ ation, announces th a t a rra n g e ­
m en ts and pro g ram details have been
com pleted for th e a n n u al convention
•of th e o rganization to be held in M inot,
F rid a y and S aturday, Ju n e 14th and
15th. H e ad q u arters w ill be a t th e
L elan d -P ark er Hotel.
Golf on th e aftern o o n of Ju n e 13th,
and a sm oker th a t evening, w ill s ta rt
th e two-day m eeting of a series of
en te rta in m e n t and program m easures.
In p resen tin g his program for th is
1940 convention, Mr. W attam has a r­
ran g ed fob a n u m b er of o u tstan d in g
speakers, w hose subjects are of a n a ­
tu re broad enough to adequately cover

C

th e several problem s w hich are con­
fro n tin g b an k ers today. A gricultural
problem s w ill be tak en up by B. E.
Groom, Fargo, of th e G reater N orth
D akota A ssociation. H. C. Tim berlake, F ed eral R eserve Bank, M inne­
apolis, w ill talk on bank earnings and
operating expenses, and o th er speak­
ers w ill discuss topics of equal in te r­
est.
The com plete program reads as fol­
lows:
Thursday, June 13
A fternoon: Golf—M inot C ountry Club
Evening: Inform al Sm oker — M inot
C ountry Club
Friday, June 14
9:00 to 10:00 A. M.—R egistration, Le­

land-P arker H otel
10:00 A. M. S harp—O pening Session at
E lk ’s Club
Invocation—Rev. N. E v e re tt H anson
W elcom e to M inot—Dr. V. E. Sand­
berg, M ayor
R esponse—H a rtin Aas, New Rockford,
Vice P resident, N. D. B. A.
P re sid e n t’s A ddress—F ra n k R. Scott,
Fargo
A ppointm ent, Com m ittee on R esolu­
tions
R eport of T reasu rer—F red R. O rth,
G rand F o rk s
R eport of S ecretary—C. C. W attam ,
F argo
F arm Sales P ro g ram for N orth Da(T u rn to page 57, please)

high bond prices. Chief am ong these
forces w as th e accelerated inflow of
capital from abroad. T he tra n s fe r of
■$3,574,000,000 of gold to th e U nited
S tates d u rin g th e y e a r—probably the
g re a te st in te rn a tio n a l m ovem ent of
w ealth ever to tak e place w ith in so
sh o rt a tim e—increased th e cred it base
to th e h ig h est po in t in history.
B ank holdings of direct and g u a ra n ­
teed secu rities increased by m ore th a n
$2,000,000,000 from th e low of Ju n e
1938 to a new high total, m ost of th e
p u rch ases being m ade by New Y ork
C ity banks, in w hich capital from

abroad had been deposited, according
to th e survey.
Set fo rth in th e study is a chronol­
ogy of 1939 events p ertain in g to
g o v ernm ent fianance, b anking and the
m oney m arket. A record of receipts
and ex penditures of th e U nited States
tre a su ry for th e p ast seven years is
accom panied by ch arts giving a com­
plete pictu re of tre a su ry incom e and
outgo. Also included is a statem en t of
th e tre a s u ry ’s general fund balance at
th e fiscal y ear—ends 1933-1939; and a
com parative statem en t of th e public
debt, to g eth er w ith inform ation re ­

g arding th e distrib u tio n of direct
tre a su ry obligations as to m a tu rity at
each y ear—and since 1930. A chron­
ological record of U nited States tre a s­
u ry financing covers th e y ears 1935
th ro u g h 1939, and also includes tre a s­
u ry bonds offered p rio r to 1935 w hich
w ere ou tstan d in g as of D ecem ber 31,
1939. A com prehensive review of
governm ental agencies, w ith th e ir in ­
dividual and com bined balance sheets,
is covered in a 17-page section. Obli­
gations of U nited States territo ries and
in su lar possessions are also su m m ar­
ized in th e review .

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UNITED STATES TREASURY
EXPEN D ITU RES

REVOLVING FUNDS.
D E B T R E T IR E M E N T &
T R A N S F E R S TO
T R U S T AC C O U N TS

G E N E R A L AND S P E C IA L ACCO UNTS,
BY F IS C A L Y E A R S

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DEPARTM EN T OF
A G R IC U L T U R E
P U B L IC D E B T
IN T E R E S T

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N A T IO N A L
D EFEN SE
VETERAN S'
A D M IN IST R A T IO N

O THER G EN ERA L
E X P E N D IT U R E S

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— C h a r t C o u rte s y o f C. J . D e v in e & Co., In c .


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Federal Reserve Bank of St. Louis

Stop

Payment on a

Check Be Charged O ff?
May issued and delivered to B aker
a check d raw n on a b an k a t w hich
both had accounts. B aker deposited
th e check to his account, and th e b ank
credited th e am o u n t th ereo f in his
passbook. A bout an h o u r la te r and
before th e check had been charged to
th e account of May, w ho h ad sufficient
balance to cover it, th e b an k received
from M ay a notice to stop paym ent
on th e check. The b an k attem p ted
to do th is by charg in g off th e am o u n t
of th e check on B ak er’s account. B ak­
er refused to accept th e charge and
sued th e bank. Can he recover?
Yes. In a case in v o lv in g a sim ilar
set of facts the M innesota Suprem e
Court held a little over a m onth ago
that the g iv in g of th e credit on the
passbook Avas eq u ivalen t to g ivin g
cash for the check and that the hank
should not th ereafter attem p t to honor
a stop order giAren under the circum ­
stances sim ilar to th ose outlined.
AVeiser receiA^ed a d ra ft duly exe­
cuted by an Iow a bank. He delayed
p resen tin g it for 19 years. The sta ­
tu te of lim itations involved w as 10
years. The b an k refused to pay. W as
such refu sal proper?
Yes. AATeiser Avas obligated to pre­
sen t the draft w ith in a reasonable
tim e for p aym ent and th ereafter the
10 year period of lim itation s should
have begun to run. O bviously the 19
year delay w as u nreasonable and the
bank Avas justified in refu sin g to pay.
A N orth D akota b an k er and his wife
each had a su b stan tial am ount of
pro p erty . The b a n k e r suffered finan­
cial rev erses and lost all his p ro p ­
erty. On top of th is bad fortune, he
becam e ill and unable to su p p o rt h im ­
self. Could he req u ire his w ife to tak e
care of him out of h e r sep arate p ro p ­
erty, w hich, incidentally, had not di­
m inished in value?
Yes. U nd er the laAAT of N orth D a­
kota it is as m uch the duty of the
AAife to support and m aintain the h u s­
band out of h er separate property
Avhen he is unable to take care of h im ­
self and she has sufficient property to

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Federal Reserve Bank of St. Louis

These and Other Timely Legal
Questions Are Answered
By the
LE G A L DEPARTMENT

do so, as it is for th e husband to sup­
port the AAife under sim ilar circum ­
stances.
A N ebraska banker m ysteriously
disappeared from his hom e and n o th ­
ing w as h eard from him or concern­
ing him for seven y ears by his wife
and children or anyone else w ho
w ould n a tu ra lly h e a r from him if he
w ere living. The b an k er had certain
life in surance payable to his wife and,
a t th e end of th e seven year period,
she sought to recover thereon. Could
she do so?
Yes. A p resum ption of death arises
from a p erson ’s continued and u n e x ­
plained absence from h is hom e or
place of resid en ce for sev en years,
w here n o th in g has been heard from
or con cern in g him during th at tim e
by those w ho w ould natu rally hear
from him if he Avere liv in g . T his
presum ption is sufficiently stron g to
support a recovery on in surance pol­
icies.
B losk eots obtained a ju d g m en t in
South D akota ag ain st the five tru stees
of a state b an k in liquidation. The
ju d g m en t w as in th e C ircuit C ourt and
w as ag ain st th e defendants in th e ir ca­
pacities as trustees. The judgm ent
w as appealed to th e Suprem e Court.
T he appeal bond w as signed by th e
tru ste es in th e ir individual capaci­
ties as sureties. W as such p roper and
acceptable?
Yes. Since the defendants Avere sued
in th eir capacity as tru stees of the
bank that AA’as in liquidation, no per­
sonal liab ility attached to them in the
action up to the tim e the appeal bond
becam e n ecessary.
Had som eone
other than the tru stees in th eir individual capacities sign ed the appeal
bond, th ey, the tru stees, Avould n ever

he p ersonally lia b le in th e ca se. S in ce,
lioAAever, th e y b ou n d th e m selv es p er­
so n a lly as su r e tie s on th e a p p ea l bond,
a personal lia b ility AA’a s created AA'hich
could properly be the fo u n d a tio n for

an appeal bond.
R ogers borrow ed five tho u san d dol­
lars from a b ank in K ansas, giving it
th erefo r a prom issory note duly signed
by him to g eth er w ith a m ortgage on
an ap artm en t building in th a t state.
T h ereafter Rogers m oved out of th e
state. T he note w as not paid w hen
due. The b an k foreclosed b u t did
not realize enough from th e a p a rt­
m en t to pay off th e loan. I t could
not secure a deficiency ju d g m en t in
th e foreclosure su it because it could
not get personal service on Rogers.
L ater it sued him in the state w here
he resided for th e balance due, th a t
is, th e deficiency. Could it recover?
Arcs. W here a m ortgagee forecloses
first, but does not obtain a deficiency
judgm ent, and su b seq u en tly su es on
the note for the deficiency, the courts
com e to the con clusion that there has
been no m erger of the cause of action
on the m ortgage and the cause of ac­
tion on th e note and that a judgm ent
for the am ount due m ay be obtained
on the latter. The fact that, gen erally
speaking, a m ortgagee m ay bring an
action on the note again st the debtor
w h erev er he m ay he found, but can
on ly foreclose the m ortgage in the
jurisdiction w here the m ortgaged
land lies is an im portant reason for
so d ealin g Avith su ch m atters.
UreAvregard h eld certain real estate
as agent for Bell, a banker. Record
title stood in B rew reg ard ’s nam e.
B rew regard en tered into an agreem ent
w ith a bus com pany to give it a rightof-way over th e land for $500 payable
90 days th ereafter. He had no rig h t
to do th is w ith o u t B ell’s consent al­
though th is lim itation on his pow ers
w as not of record. Bell learned of th e
deal, notified th e bus com pany th a t
he w as not agreeable thereto, and for­
bade th em from consum m ating th e
tran sactio n and paying over to Brewregard an y m onies, w hich th ey had
(T u rn to page 42, please)

>1

A,


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Federal Reserve Bank of St. Louis

22

National Defense Measures First
In Washington

W

AR h y ste ria h it a new high in
official W ashington as th e G er­
m an w ar m achine pushed w est­
w ard w ith alarm in g success. Domes­
tic problem s, alread y tak in g a back
seat, w ere relegated to some all-butforgotten nook of th e political m ind.
P o ten t p h rases of high gov ern m en t
officials w ere subjected to studied an al­
ysis and v aried in terp retatio n s.
P resid en t R oosevelt’s req u est for an
additional outlay of $1,182,000,000 for
national defense m et p ractically no
opposition. H ow ever, C ongress w ould
like to know w h y o u r defense m achin­
ery is not m ore up-to-date a fte r th e
huge spendings of recen t years. Sen­
ators H en ry Cabot Lodge (R., Mass.)
and E lm er T hom as (D., Okla.) are
seeking an in q u iry into conditions and
needs of our a rm y and navy. T here
is w ide su p p o rt for such an in q u iry
b u t it w ould req u ire tim e and th e Ad­
m in istra tio n w an ts speed.
W ith th e
$2,000,000,000 alread y asked from th is
Congress t h e
em ergency req u est
m akes a total of $3,182,000,000.
“Our ideal, our objective is still peace
—peace at hom e and peace abroad,”
th e P resid en t said. “N evertheless, we
stan d read y not only to spend m illions
for defense b u t to give our service and
even our lives for th e m ainten an ce of
our A m erican lib erties.”
A larm ing speeches of d angers to the
A m ericas, if designed to p rep are th e
public m ind to accept w illingly a huge
bill for arm am ents, w ere largely suc­
cessful, b u t th e y are looked upon in
m an y q u a rte rs as “feelers” to see how
far th e A m erican people are w illing to
go in a pro-Ally program .
Credit
The question of credits to belliger­
ents, forbidden by th e N e u tra lity law,
is again being raised b u t th e m ajo rity
in C ongress a p p a re n tly is not y e t in
favor of rem oving th e b arriers. C hair­
m an A ndrew J. M ay (D., Ky.) of the
H ouse M ilitary A ffairs C om m ittee be­
lieves we “ought to do ev ery th in g we
can to help th e A llies.” In ord er to
p erm it Allied occupation of th e D utch
W est Indies th is g o v ern m en t decided
th a t since th e re w ill be no change in
sovereignty of th e islands th e re is no
violation of th e M onroe D octrine. This
in te rp re ta tio n of th e D octrine is
view ed by some o b servers as a danger
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Federal Reserve Bank of St. Louis

By Paul F. Lavezzo
Washington Correspon dent
The Northwest ern Banker

ous p recedent w hich this N ation m ay
later regret.
A w ar-tim e finance plan of forced
loans w as advocated in a recently pub­
lished speech by C hairm an Jerom e
F ra n k of th e Securities and E xchange
Commission. It w ould be a modified
form of the B ritish plan evolved by
J. M. K eynes, B ritish econom ist. U n­
der K eynes’ plan p a rt of th e “loans”
w ould be repaid in in stallm en ts a fter
th e w ar and p a rt w ould be considered
taxes. F ra n k saw th e possibility of
raisin g $20,000,000,000 in this way.
Gold Policy
A ny change in g overnm ent gold poli­
cies such as a reduction in price or
atte m p tin g to h alt purchases of for­
eign gold w ould re su lt in “real disas­
te r,” according to S ecretary Morgen-

thau. He said th a t to continue gold
buying is “th e only sound course of
action open.”
“We can feel e n tirely com fortable in
th e possession of a supply of gold w ith
w hich we can m eet fu tu re dem ands on
our m o n etary system w ith o u t a n y
shock to our econom y,” he declared.
“We can be prep ared also to play th e
p a rt we ought to play in th e recon­
stru ctio n of th e w orld th a t m u st follow
th e senseless destru ctio n of w ar.”
The T reasu ry in a m em orandum to
th e Senate B anking and C urrency Com­
m ittee has tem p o rarily tu rn e d dow n
a proposal to coin gold and m ake gold
loans to foreign governm ents. Sena­
tor Thom as is sponsoring legislation
w hich w ould perm it th e E xport-Im ­
p o rt B ank to m ake loans to central
banks of eligible foreign governm ents.
Townsend Bill
The T ow nsend bill to end foreign
silver buying w as passed by th e Sen­
ate b u t m et some opposition in th e
H ouse on th e ground th a t it should
have originated there. The T reasu ry
has acquired n early a billion dollars’
w o rth of foreign silver since it began
buying six y ears ago.
The “easy m oney” policy of the New
Deal w as scored recently on two fronts.
The F ed eral A dvisory Council charged
th a t such a policy th re a te n s existence
of p riv ate b an king and all priv ate en­
terp rises and urged th e F ederal Re­
serve B oard to m ake a long-range
study of consequences. The U nited
States C ham ber of Commerce at its
recen t convention w arned th a t p resen t
m onetary policies are w eakening th e
economic stru ctu re. The C ham ber op­
posed vigorously any attem p ts to cen­
tralize undue pow er over reserves and
com m ercial banking in th e B oard of
G overnors of th e F ederal R eserve Sys­
tem.
Senate B anking and C urrency Com­
m ittee h earings on th e Downey resolu­
tion to “determ ine if excess or stag­
n a n t savings are accum ulating in th e
U nited S tates” call to m ind th e recen t
charge m ade by P resid en t E m m ett
Connely of th e In v estm en t B an k ers
A ssociation th a t “G overnm ent must-doit-allers” are attem p tin g to p u t a ta x
on savings.
Farm Credit
The Jones bill to ease farm credit
is not expected to get out of the H ouse

23
A g ricu ltu re C om m ittee th is session.
P re sid e n t R obert M. H anes of the
A m erican B an k ers A ssociation accused
A g ricu ltu re S ecretary W allace of seek­
ing to destro y th e existing farm cred it
system . H anes said th e Jones bill
w ould destro y th e F ed eral L and B anks
and “drive out of th e farm cred it field
all lenders except one, th e D ep artm en t
of A g ricu ltu re.”
C hester C. Davis, m em ber of th e
B oard of G overnors of th e F ed eral Re­
serve System , said if th e principle of
th e bill is adopted and extended, “th e n
th e p riv a te com m ercial ban k in g sys­
tem w ould ten d to becom e a th in g of
th e p ast.” He explained th a t he d id n ’t
believe th is w as inten d ed or th a t it
w ould re su lt from th is bill alone.
Wage-Hour
A fter spending seven days ap p ro v ­
ing am en d m en t a fte r am en d m en t to
th e w age-hour law, th e H ouse voted to
drop th e w hole m a tte r for th is session.
R ep resen tativ e Vito M arcantonio (A.
L., N. Y.) saw th e w age-hour action
as foreshadow ing a sim ilar fate for
W agner Act am endm ents. “W hen th e
H ouse voted to recom m it th e bill m odi­
fying th e w age-hour law, it also voted
to kill a tte m p ts to change th e W agner
A ct,” M arcantonio predicted.
C hairm an H ow ard Sm ith (D., Va.)
of th e H ouse L abor In v estig atin g
Com m ittee, sponsor of W agner Act
changes, said his proposals w ould be
unaffected by th e w age-hour act. M ean­
w hile, A d m in istrato r P hilip F lem ing
has prom ised th a t w age-hour h earin g s
to redefine a b an k in g “ex ecu tiv e” w ill
be held d u rin g June.
Expansion Bill
B ut not y et dead is th e F ederal
H om e L oan B ank expansion bill and
its advocates are sp arin g no efforts to
obtain action on th e m easure. Also
still alive is th e bill to double th e lend­
ing capacity of th e U nited S tates H ous­
ing A uthority.
T he H ouse B anking and C urrency
C om m ittee tabled half of th e Glass bill
to p erm it RFC p u rch ase of T re a su ry
held FH L B system stock and to in ­
crease th e am o u n t of m oney available
for railro ad loans. The tabled portion
of th e bill w oud have given the F e d ­
eral Loan A d m in istrato r equal pow er
w ith th e S ecretary of th e T re a su ry in
d eterm in in g RFC p u rch ases of p re ­
ferred b an k stock and w ould have lib­
eralized real estate loans by natio n al
banks.
Consumer Credit
The Com m erce D ep artm en t has in­
au g u ra te d a new business rep o rtin g
service in w hich it p resen ts statistics
on loan o perations of consum er in stall­
m ent credit agencies. The first report,
w hich traced th e tre n d of in d u strial
b an k in g consum er loans from 1929 to

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Federal Reserve Bank of St. Louis

I n the trying days of the
early thirties some one said
that most bank management
problems could be explained
in four words: “Depositors go;
borrowers stay”.
But what may be said of bank
operation at this time, when
borrowers are rare and deposi­
tors’ funds are at an all-time
high?
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PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits
$42,000,000
Member of Federal Deposit Insurance Corporation

Northwestern Banker

June 19 W

24
1939, show ed th a t such loans reached
a new peak last year.
“The D epartm ent of Com m erce rec­
ognizes the grow ing im portance of con­
sum er credit in our economic system
and the program to be conducted by
th e Credit A nalysis U nit w ill fill in a
wide gap in c u rre n t services to b u si­
ness,” S ecretary H opkins said.
He explained th a t th e service w ill
be p a rticu larly valuable to in d u strial
b an king com panies by giving th em a
y ard stick to m easure tren d s w ith in
th e ir own business.

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Federal Reserve Bank of St. Louis

June 19JO

M
a g /
Ja s a r e

In response to th e Securities and E x ­
change Com m ission’s req u est for its
view s concerning rules governing p ay ­
m ent of u n d erw ritin g fees u n d er th e
U tility H olding Com pany Act, th e N a­
tional A ssociation of S ecurity D ealers
said w here th ere is no question of
affiliation betw een u n d e rw rite r and
issuer—no ride is necessary to d eter­
m ine reasonableness of fees. The SEC
w as told th e H olding Com pany A ct set
up a stan d ard and a m ethod w hich “is
simple, w orkable and fully adequate to
protect every legitim ate in te re st of is­
suers, u n d e rw rite rs and distrib u to rs,
investors and th e public a t large.”
Congress m ay have an o p p o rtunity
to vote on in te rsta te trad e b a rrie rs be­
fore it goes home. A H ouse group
headed by Clyde T. E llis (D., A rk.),
and Jo shua L. Jo h n s (R., W is.), w an ts
to am end th e federal aid highw ay bill
to provide th a t no state m ay receive
funds u n til it has adopted a uniform
highw ay code. At p resen t the states
have a v ariety of highw ay law s and
restrictio n s m aking in te rsta te tru c k ­
ing difficult.
T he group said th e U nited States is
disin teg ratin g into a “B alkanized m esh
of trad e b a rrie rs,” w hich h alts trad e
and co n trib u tes g reatly to unem ploy­
m ent.

Sixty Years of Service
At a d in n er m eeting of the officers of
M anufacturers T ru st Company, H a r­
vey D. Gibson, president of th e bank,
presented an especially m an u factu red
w atch to R ichard N. Cotter, a ssistan t
secretary, at th e 23rd S treet office of
the bank, w ho has com pleted sixty
y ears of service w ith th e sam e branch.
Mr. C otter en tered th e b an king field
on May 16, 1880, as a m essenger for
the F ifth N ational B ank w hich had
been established sixteen y ears earlier.
W hen th a t b ank w as m erged w ith
M anufacturers T ru st Com pany in 1925,
it becam e know n as th e 23rd S treet
office of th e la tte r institu tio n , and
th ro u g h o u t th is en tire period Mr. Cot­
te r has been affiliated w ith th a t sam e
office.

W h y Insurance M en OppOSB

Compulsory Automobile Insurance
th e lack of
success of th e M assachusetts
C om pulsory A utom obile In s u r­
ance A ct an d n o tw ith sta n d in g th e fact
th a t com pulsory in su ran ce offers n o th ­
ing to reduce th e n u m b er or sev erity
of autom obile accidents, it is evident
th a t a large percen tag e of autom obile
o w ners have rem ain ed u n in su re d u n ­
d er a v o lu n ta ry system of insurance.
A g en erally accepted estim ate is th a t
30 p er cent of reg istered autom obiles
are insured, v a ry in g from ab o u t 10
p e r cen t in A labam a, M ississippi and
N o rth an d South D akota to ap p ro x i­
m ately 40 p e r cen t in C onnecticut,
M ichigan and N ew York, as high as 56
p e r cent in N ew H am pshire, and as
low as 25 p er cent in Iowa. A tr e ­
m endous sales effort has been m ade by
all of th e autom obile in su ran ce com ­
panies in th e U nited States in recen t
years, b u t th e percentage of u n in su re d
cars has not g re a tly decreased. Is
C om pulsory In su ran ce th e answ er?
T h ere is m uch to be said on both
sides of th e q uestion of com pulsory
insurance. T he opponents of com pul­
so ry in su ran ce can rig h tfu lly point
o u t th a t in M assachusetts, th e only
sta te in w hich it has been tried, it has
not reduced accidents; it has not kep t
d ru n k e n d riv ers n o r an tiq u a te d au to ­
m obiles off th e highw ays; it has g re a t­
ly increased th e am o u n t of litigation
w ith consequent profit to th e legal
profession; and th e re is serious doubt
as to w h e th e r its social benefits have
been sufficient to ju stify th e tre m e n ­
dous cost to th e m otoring public.
T he p ro p o n en ts of com pulsory leg­
islation po in t out th a t th e autom obile
is a dangerous in stru m e n t, its use is
reg u lated by license and should be ac­
com panied by financial ab ility to pay
for personal in ju ries caused. T hey
poin t out th a t th e responsible, sober,
self-respecting individual carries in­
su ran ce v o lu n ta rily and th a t u n d er
th e p re se n t system he is not only p e r­
form ing his ow n d u ty to th e public
by carry in g v o lu n ta ry insurance, b u t
is placed a t th e m ercy of th e irre sp o n ­
sible and even hom icidal d riv e r w ho
has no reg ard for th e lives and p ro p ­
e rty of others. T hey poin t to th e
m an y instan ces of in ju stice w here in ­
ju re d persons, rig h tfu lly en titled to
com pensation for th e ir in ju ries, are
o t w it h s t a n d in g

N


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Federal Reserve Bank of St. Louis

By J . W . Gunn
Vice President
Em ployers Mutual Casu alt y Company
Des Moines

"The reason for insurance
opposition or lack of sup­
port is that it fears, and
rightly, the enactment of
compulsory legislation by a
state. Compulsion means
the possibility of political
control, political favorit­
ism, political influence. The
dead hand of politics has
ruined many businesses and
has put burdensome and
unjust re strictio n s upon
many others."

unable to recover and to th e conse­
q u en t social loss to th e com m unity by
reason of th e req u ired su p p o rt of such
individuals by th e state.
A G allup poll in 1938 rep o rted to
th e q uerry, “Should every autom obile
ow ner be req u ired by law to c arry ac­
cident in su ran ce?” 81 p er cent of the
car ow ners and 89 p er cent of th e non­
car ow ners answ ered “Yes,” th e a v e r­
age being 84 per cent of all persons
questioned. Since countryw ide, only
30 p er cent of th e car ow ners carry
such insurance, it m ay be tak en for
g ran ted th a t th e attitu d e of th e av­
erage person is th a t com pulsory in ­
su rance should be req u ired for the
o th e r fellow, b u t not of himself!
Not even a m ajo rity of driv ers have
show n th a t th ey sufficiently favor the
in su ran ce p rincipal to v o lu n tarily
spend th e ir ow n m oney to buy it.
Some insurance m en have come out
boldly in opposition to com pulsory in ­
surance. O thers have adm itted th e
need of some im provem ent in th e vol­

u n ta ry system , b u t have recom m ended
caution and a policy of “w ait and see.”
A m ajority, perhaps, have been n eu ­
tra l or undecided. V ery few well-in­
form ed in surance officials have fa­
vored com pulsory legislation.
W hy is th is true? I t is not th a t in ­
su rance m en seek to oppose desirable
social reform , or th a t th ey w ish to de­
feat th e w ill of th e m ajority. The
real reason for th e ir opposition or lack
of su p p o rt is th a t th ey fear, and rig h t­
ly fear, th e enactm ent of com pulsory
legislation by a state. Com pulsion
m eans th e possibility of political con­
trol, political favoritism , political in ­
fluence. T he dead h and of politics has
ru in ed m any businesses and has p u t
burdensom e and u n ju st restrictio n s
upon m any others.
If th e in su ran ce in d u stry could be
convinced th a t com pulsory insurance
m ean t only th a t—m erely th e in sist­
ence by th e state th a t every d riv er be
req u ired to give evidence of his ability
to respond in dam ages for th e con­
sequence of his acts,—forw ard-looking
insurance people w ould n ot oppose
an y w ell-drafted legislation. M ost do
n ot oppose th e principle, b u t only th e
m ethods, of com pulsion; and th e M as­
sachusetts ex p erim ent has fu rn ish ed
am ple proof th a t th e ir fears m ay be
justified.
If in su ran ce ex p erts can have a
voice in th e fram ing of com pulsory
legislation, and can be assured th a t
the proposed plans w ill be com pletely
and p erm an en tly divorced from poli­
tics, m uch of th e opposition m ay be
overcome; b u t unless th is is done, in ­
surance m en generally will use th e ir
influence to oppose com pulsory in su r­
ance.

Causes of Death
A ccidents and tuberculosis are the
n u m b er one and nu m b er tw o causes of
death am ong A m ericans u n d er 40, al­
though “T. B.” has been reduced to a
poor six th for th e population as a
whole.
A m ong th e chance-taking
y ounger age groups betw een 10 and 29,
accidents cause one death out of every
four. B ut for th e en tire U nited States
population, including all ages, hearta rte ria l diseases are far and aw ay th e
nu m b er one killer, causing alm ost a

26
th ird of all deaths, or th re e tim es the
fatalities caused b y cancer, th e second
g reate st cause of d eath am ong th e g en­
eral population.
T he above are som e of th e facts
b ro u g h t out in a new book ju s t off th e
press, “Issued as A pplied F o r,” by Dr.
H en ry W irem an Cook and H e n ry W.
Cook, Jr. Dr. Cook is vice p resid en t
an d m edical d irecto r of N o rth w estern
N ational Life In su ran ce Com pany, of
M inneapolis. (E d ito r’s N o te— W e re­
gret to in fo rm our readers th a t Dr.
Cook died recen tly in M inneapolis.)
T he tw o m ost d isastro u s influences
on life in su ran ce m o rta lity figures
since th e tu rn of th e ce n tu ry w ere th e
influenza epidem ic of 1918, w hich in
six m o n th s killed m ore people th a n

th e W orld W ar did in four years, and
th e g re at depression w hich sta rte d at
th e end of 1929, Dr. Cook brings out in
his book. C ontrary to popular belief,
th e depression did not raise th e death
ra te of th e general population; how ­
ever, it m ade a serious increase in the
m o rta lity rates of life in surance com­
panies and a g reater increase in the
losses paid. T here w as a m ark ed in ­
crease in suicides du rin g th e depres­
sion, w hich m ade a v ery sm all factor
in th e general m o rtality figures b u t a
large one in th e in surance business be­
cause m any of th e suicides w ere m en
of fo rm erly su b stan tial m eans, who
w ere h eavily in su red —m any of them
“m illion dollar risk s.” The heaviest
b u rd en of the depression fell on m en

Financial Statement
D e cem b er 31, 1939

G e n e r a l A m e r ic a n L if e
I n su r a n c e Co m p a n y
W ALTER W. H EA D
Presid en t

S t . L o u is , M o .

ASSETS
C a s h o n H a n d a n d In B a n k s ...............................................$10,3 1 5 ,0 3 7 .7 6
B on d s—
f U . S . G o v e r n m e n t ............................................................. 1 7 ,057,219.63
w \ O th e r B o n d s .............. ....................................................... .. 1 0 ,806,896.45
C a s h a n d B o n d s ......................................................................................................... $ 3 8 ,1 7 9 ,1 5 3 .8 4
F ir s t M o r tg a g e L o a n s o n R e a l E s t a t e ..........................................................
2 3 ,714,025.81
H o m e O ffice B u ild i n g .............................................................................................
950,0 0 0 .0 0
R e a l E s t a t e S a le s C o n t r a c t s ...............................................................................
1 ,093,321.97
O th e r R e a l E s t a t e ..................................................................................................... 17,5 2 3 ,4 4 6 .4 3
S t o c k s ...............................................................................................................................
2 ,9 4 4 ,0 5 0 .2 5
O th e r L o a n s a n d A s s e t s ........................................................................................
1,114 ,4 1 6 .8 2
I n t e r e s t a n d R e n ts o n I n v e s t m e n t s A c c r u e d B u t N o t Y e t D u e . .
8 2 7 ,9 9 4 .8 3
I n t e r e s t a n d R e n t s D u e o n I n v e s t m e n t s (N o n e o f w h ic h is p a s t
d u e m o r e t h a n 90 d a y s ) ....................................................................................
3 5 2 ,3 7 6 .0 5
N e t P r e m iu m s in C o u r se o f C o l l e c t i o n ......................................................
2 ,0 7 7 ,0 6 7 .2 0
© B a la n c e o f I n i t ia l P o lic y L i e n s ....................................................................
1 2 ,254,938.00
L o a n s t o P o lic y h o ld e r s ..........................................................................................
2 7 ,3 8 5 ,1 5 7 .8 2
$128 ,4 1 5 ,9 4 9 .0 2
© T o t a l A ss e ts .

LIABILITIES
® P o lic y R e s e r v e s ....................................................................................................... $ 1 1 8 ,1 2 7 ,6 3 9 .1 3
885,8 7 5 .9 7
P r e m iu m s a n d I n t e r e s t P a id in A d v a n c e ..................................................
674,4 3 0 .6 3
R e se r v e fo r T a x e s .......................................................................................................
R e se r v e fo r O th e r L i a b i l i t i e s .............................................................................
616,012.21
1 ,162,662.15
P o lic y h o ld e r s ’ D iv id e n d s ......................................................................................
T o t a l ................................................................................................................................. 1 2 1 ,466,620.09
P o r tio n o f C u r r e n t Y e a r ’s E a r n in g s A v a ila b le fo r F u t u r e D iv i­
d e n d D e c la r a t io n t o P a r t ic ip a t in g P o lic y h o ld e r s P u r s u a n t t o
6 3 6 ,5 9 3 .0 0
P u r c h a s e A g r e e m e n t .........................................................................................
4 ,1 0 4 ,2 8 6 .8 0
C o n t in g e n c y R e s e r v e ..............................................................................................
U n d e r P u r c h a s e A g r e e m e n t ............................................ $ 4 ,0 6 8 ,2 8 6 .8 0
O t h e r .............................................................................................
36,00 0 .0 0
5 0 0 ,0 0 0 .0 0
C a p ita l S t o c k a n d G u a r a n ty F u n d
1,70 8 ,4 4 9 .1 3
S u r p l u s ...........................................................
$ 1 2 8 ,4 1 5 ,9 4 9 .0 2
© T o t a l L ia b il it ie s ...................................
© Actual M arket Value o f Bonds is more than $2,100,000 in excess o f the amounts shown above.
© D oes not include liens totaling $360,839 which have been discharged by payments in cash or
credits by policyholders, nor $233,118.72 liens on dividends on deposit, both o f which items w ill
share in future lien reductions.
© Includes assets in " O ld C om pany Account” established under Purchase Agreement dated
September 7, 1933, on file w ith the Superintendent o f the Insurance D epartment o f the State o f
Missouri, (copy o f which agreement m ay be obtained from him or the company), against which
th e Superintendent reserved a lien to protect certain liabilities therein described and fu lly included
among the liabilities in this statement. Status o f O ld Com pany account on file w ith the Superin­
tendent and w ith the Com pany.
© F u ll net legal reserves on policies issued by General Am erican L ife are secured by deposit o f
approved securities w ith the Superintendent o f the Insurance D epartm ent o f the State o f Missouri.
T h e capital stock, guaranty fund, and surplus are additional protection to all policyholders.

GENERAL AGENCY O PPO RTUN ITIES

a re now open

in O h i o , I n d ia n a , V ir g in ia , W. V ir g in ia , N . C a r o lin a , M is s o u r i a n d I ll in o is .

Northwestern Banker


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Federal Reserve Bank of St. Louis

June 19kO

of large affairs; th e m ortality am ong
th is class w as heavy from h e a rt dis­
ease as w ell as suicide. A second in ­
fluence of the depression w as of course
an increased lapse rate, w hich w as
h eaviest am ong th e h ealth y “good
risk s.” Policyholders w ho w ere in
poor health, or w ho w ere for any re a ­
son poor risks, n a tu ra lly m ade g re a te r
effort to keep th e ir in su ran ce in spite
of h a rd tim es th a n did persons w ho
felt th ey could readily secure in su r­
ance again w hen tim es grew b etter.
T his resulted in h ig h er m o rtality av er­
ages, and h eavier death losses for th e
insurance com panies to pay.
T he new book, a Prentice-H all publi­
cation, w as w ritte n as a guide to life
in su ran ce agent, to help them in th e
selection of prospects. T he volum e
quotes a stu d y previously m ade by the
com pany show ing th e leading causes
of rejection of applicants for in surance
to be, in order, F irst, abnorm al blood
pressure; second, im m oderate use of
alcohol; th ird , h e a rt im pairm ents;
fourth, u rin a ry im pairm ents; fifth,
m orals and rep u tatio n , and sixth, over­
w eight.
Excessive use of alcohol m akes a
risk “heavily rateab le or u n in su rab le
and im pairs life expectancy,” accord­
ing to th e book. D eath from alcohol­
ism is only one of several hazards re ­
su ltin g from th is cause, th e book
states, chief of w hich are increased
frequency of accident, suicide, in san ­
ity, h e a rt disease, tuberculosis, p n eu ­
m onia, and ulcers of th e stom ach,
am ong alcoholics.

New Board Members
Wm. A. M. B urden of th e N ational
A viation C orporation w as elected a
m em ber of th e board of tru stees of
C entral H anover B ank and T ru st Com­
pany, New York, at a m eeting of the
board held recently.
F o r several y ears p rio r to u n d e rta k ­
ing his p resen t position in 1939, Mr.
B urden w as in charge of aviation re ­
search for the inv estm en t counsel firm
of Scudder, Stevens and Clark. He is
fu rth e r connected w ith th e aviation in ­
d u stry th ro u g h a d irectorship in th e
U nited A ir Lines T ran sp o rt C orpora­
tion. He is ch airm an of th e board of
th e A eronautical A rchives of th e In sti­
tu te of A eronautical Sciences and a
vice presid en t of th e In stitu te. O ut­
side th e field of aviation, he is a vice
p resid en t and directo r of th e U nion
S u lp h u r Com pany and of th e South
A m erican M ines Company, and ch air­
m an of th e board of th e Cotopaxi E x ­
ploration Company.

27

The Month’s Market Maneuvers
G erm any invaded
til«“ low countries
on May 10th—and
^
all the th in gs that
can happen in sejj^H
eurity m arkets fol­
low ed. Stock prices
'
collapsed — rallied
B ,® M m
—a n d c o 11a p s e d
again. C om m odities
JA M E S H. C L A R K E
tum bled over each
oth er in settin g n ew low s. V olum e of
trading w as trem en d ou sly accelerated
—the stock m arket tape w as late tim e
and again — calls for more m argins
poured out. H igh grade bond prices
fell som ew h at—second grade m arkets
w ere m uch low er. A nd the age w orn
q uestion, “W ill the govern m en t close
the m arkets?”, flopped up on all sides.
T h is d espite the fact that liquidation
in the stock m arket w as orderly—
more lik e 1937 than 1929.

W e are w ritin g this article on S a tu r­
day m orning, M ay 25th— to m eet our
dead line. Today G erm any is still
draw ing her band of steel around A l­
lied troops in B elg iu m — Calais has fall­
en — but the F rench are pounding
aw ay at the G erm an salient. The m a r­
ke ts are q u iet— seem slig h tly m ore
confident— although by the tim e this
goes to press all m a y be different. For
the fluctuations in the battle lines in
France and B elgium — not our ow n do­
m estic conditions— define th e trend
lines in our m a rkets fo r the present.
W ith about five days of trading le ft in
M ay, m u ch can still happen this m o n th
— but let’s take a look at w h a t has al­
ready occurred.
F irst, th e stock m ark et. On A pril
30th th e Dow-Jones average for in d u s­
tria l securities w as 148.41. On May 9th,
th e day before th e invasion of Holland,
it w as 147.96. A slig h t decline—b u t
th is tim e th e m a rk e t had not d iscount­
ed w h at w as to follow. In th e succeed­
ing w eek, prices low er th a n any seen
in e ith e r 1939 or 1940 w ere recorded—
in d u stria ls dropped 22.42 poin ts—vol­
um e of tra d in g averaged 3,000,000
sh ares daily as com pared w ith about
750,000 th e previous w eek—all b u t 14
of th e 1,174 stocks trad ed closed lower.
On May 13th th e m a rk e t broke 7.27
poin ts—th e n ex t day 9.28 points m ore
—on th e 17th it lost 6.25 points. T here
w ere in te rm itte n t rallies, of course—
th e re alw ays a re —b u t th e tre n d w as
dow nw ard in a nose dive fashion. E x ­
cep t for T uesday of th is w eek w hen
prices fell 8.30 points—and tra d in g in

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Federal Reserve Bank of St. Louis

Prepared for
The Northwestern Banker

It seem s a fair assum ption that such a
developm ent w ould be bad.

By James H. Clarke

T here is little to be said for th e
financing w hich appeared in May and
even less about w h at we m ay expect in
the n ex t few w eeks. U. S. Steel sold
its $75,000,000 of 15 y ear serial deben­
tu res—b ut being offered in th e m idst
of all th e u n settlem ent, th ey w ere
slow. Texas C orporation has deferred
its refunding as have several o th er
com panies—w h at th e G overnm ent has
in m ind as Ju n e 15th approaches is not
clear. W ith th e possibility of an in v a­
sion of E ngland, w ith a grow ing de­
m and in th is co u n try th a t we do som e­
th in g about it—caution is bound to
predom inate. In short, th e headlines
on the fro n t page of yo u r daily new s­
papers w ill determ ine the im m ediate
m ark et tre n d —not th e earnings fig­
u res back in th e financial section.

Assistant Vice President
American National Bank & Trust Co.
Chic ago

B ethlehem Steel w as tem porarily sus­
pended—the m ark et has been orderly
and losses small. L ast n ig h t the av er­
ages closed a t 113.94—co n trast this
w ith the A pril 30th figure of 148.41. A
loss of 34.47 points in tw enty-one days
of trad in g is sizeable. If you are in te r­
ested in the losses and gains by days
so far th is m onth, here are the figures
■
tw elve days losses w ere reported,
in eight days th e m ark et closed w ith
some gain—one day w as unchanged.
IVow for a briefer look at som e of the
other m arkets. The entire U. S. Gov­
ernm ent bond list w as low er—but
liquidation w as m oderate and prices
held up m uch b etter than in S ep tem ­
ber, 1939, w h en the w ar first broke out.
The lo n g term T reasury 2%s of 1965
w ere quoted 106.27 on the bid side on
April 30th—la st n ig h t th ey w ere 103.18.
There w ere som e con cession s also in
m unicipal bond prices and in quotes
on high grade corporates—w h ile sec­
ond grade corporates slipped rather
badly. Grains w ere v ery w eak—after
a fall of 34c a b ush el in w h ea t the Sec­
retary of A griculture ordered the es­
tablishm en t of m inim um prices. Com­
m odities such as h ides and w ool broke
sharply — E uropean cu rrencies w ere
soft—as m ight w ell be expected.

D uring all this tim e dom estic busi­
ness reports w ere better. Steel opera­
tions w h ich w ere around 62 per cent
of capacity in A pril clim bed to 73 per
cent
the Anglo-French purchasing
board announced fu rth e r purchases of
planes— indices w ere higher— but cau­
tion and pessim ism prevailed. The
G erm an successes being sw ift and
w idespread brought serious doubts as
to how long the A llies could hold out.
A m ericans who have been com placent­
ly looking for the E n g lish blockade
plus the F rench M aginot line to crush
G erm any, had been badly shaken. A s
w e w rite this article this m orning the
early hysteria has abated— but surely
the picture is still m ost clouded— and
the economic consequences of a Ger­
m a n y victorious can not be forecast.

Conferences
Two of the d ep artm en tal confer­
ences to be held at th e A m erican In ­
stitu te of B anking ann u al convention
in Boston Ju n e 3-7 w ill be conducted
in a style th a t is a decided d ep artu re
from th e custom ary form ality of such
m eetings, it is announced by H a rry
R. Sm ith, presid en t of the A. I. B.,
w ho is vice presid en t of the B ank of
A m erica, N. T. & S. A., San Francisco,
California.
A ccording to the In s titu te ’s plans,
the conferences to be held on B ank
M anagem ent and C redits have been
designed to proceed along lines of
open, inform al discussions liberally
pu n ctu ated w ith questions posed by
A. I. B. m em bers in attendance. T his
a rran g em en t v irtu ally am ounts to a
round-table conversation, in w hich any
m em ber of th e audience is welcome
to participate. B rief sum m aries of
the fundam ental principles of each
subject w ill be p resen ted by experts
before the open discussion begins, Mr.
Sm ith said.
L eaders have been selected for each
of these tw o d ep artm en tal confer­
ences. T hey are H a rry G. Culshaw,
a ssistan t tre a su re r of th e P en n sy l­
vania Com pany for In su ran ce on Lives
and G ranting A nnuities, w ho will head
the group w hich discusses Credits, and
Joseph M. Dodge, president, the De­
tro it Bank, D etroit, M ichigan, w ho
w ill lead th e B ank M anagem ent con­
ference.

28
A sim ilar inform al a rra n g e m en t w as
em ployed last y e a r in conducting th e
B ank M anagem ent conference, and
th e success w hich th is in itial effort
m et p rom pted th e extension of th e
arran g e m en t to tw o of th e m eetings
th is year.

secu rity th ro u g h individual th rift and
self-reliance or rely m ore and m ore on
F ed eral g overnm ent for support.
Mr. Johnson added th a t it is rig h t
and ju s t for the g overnm ent to p ro ­
vide th ro u g h social secu rity a living
m inim um for those unable to support
them selves in old age. B ut it is a far
cry from th is to g overnm ent going
w hole-hog into th e in su ran ce business,
as has been proposed a t various tim es.
G overnm ent is a consum er, not a
p roducer of w ealth. In a dem ocracy
th e people su p p o rt governm ent; gov­
ern m e n t cannot su p p o rt th e people.

The American W ay
In a re c e n t address, H olgar J. Jo h n ­
son, p resid en t of th e In stitu te of Life
Insuran ce, said th a t th e free-born m en
an d w om en of A m erica m u st decide
w ith in the nex t ten y ears w h eth er
th ey are going to provide th e ir ow n

* United States Government Securities *

Nation-wide Trading Facilities
O financial institutions seeking accurate markets or other
pertinent information on the securities of the United
States Government and its agencies, the broad experience
of our organization is available through our extensive
direct wire and telephone facilities.

T

TH E

1940

E D IT IO N

of our annual book "United States Government Securities"
is now available. It includes a review of U. S. Treasury
and Agency financing operations, price records of out­
standing issues from the dates of their inception, and a
chronology of important events in 1939 pertaining to
Government finance, banking and the money markets.

C. J. D EV IN E & CO.
THE FIELD B U ILD IN G , C H IC A G O
NEW Y OR K

•

BOSTON

Northwestern Banker


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Federal Reserve Bank of St. Louis

• PHILADELPHIA

June 19 40

•

CINCINNATI

C e n tra l 7 3 0 0
•

ST. L O U I S

•

SAN F R A N C I S C O

Window Machine
To m eet th e dem and of banks w hich
for y ears have w anted a really lowpriced w indow -plan m achine in th e ir
savings d epartm ents, B u rroughs now
offers a new, com pact u n it for posting
savings passbooks and ledgers a t th e
window.
T his new model, pictu red here,
priced far below an y o th er windowplan m achine ever offered, req u ires
little m ore counter space th a n a le tte r­
head and can be in stalled w ith o u t n e­

cessitating alteratio n s to cages. L ight
in w eight, it can be readily m oved to
any p o in t in th e bank.
Because of its low price, m ost banks
can now provide a m achine a t each
savings w indow regardless of fluctuat­
ing volum e or peak periods.
T he B u rroughs W indow -Plan Ma­
chine can also be used in o th er d e p a rt­
m ents for an y type of passbook post­
ing—including sm all loans, C hristm as
clubs, school savings, and m ortgage
loans.
F orm s are quickly in serted and
aligned in a single m otion. T his m a­
chine is equipped w ith th e Short-Cut
stan d ard b an k keyboard, w hich u su ­
ally p erm its th e operator to depress
e n tire am ounts and th e m otor b ar in
one m otion of th e hand. A balance is
p rin ted a t th e touch of a single key.
And, a t slack periods, th e m achine can
serve as a fast, practical adding and
su b tractin g m achine for m iscellaneous
figure w ork.

Elected in Chicago
Oliver A. Bestel, vice presid en t of
the F irs t N ational B ank of Chicago,
has been elected p resid en t of th e Cor­
porate F iduciaries A ssociation of Chi­
cago. W. W. H inshaw , Jr., secretary
and tru s t officer of th e City N ational
B ank and T ru st Company, w as nam ed
vice president, and W illiam P. W ise­
m an, tru s t officer of th e Chicago T itle
and T ru st Company, secretary and
tre a su re r. M em bership is com posed
of th e leading tru s t com panies of th e
city.

29

N o . I l l a f a S e r ie s

BUT WHERE IK TUE $ V II II II
?

amüncj,

I t lias been conservatively estim ated

A c arefu l study of th e business m ay

th a t

clearly in d ic a te th e need for a d d itio n ­

m o d ern

efficient

A m e ric a n

in d u stry lias a n average of $8,000

al cap ital investm ent.

invested in p la n t an d e q u ip m e n t fo r

In v estm e n t B a n k e r, a sound financial

every m an em ployed.

p la n is set up. A n issue of securities is

E v ery m an added to g ain fu l em ploy­
m en t calls fo r an $8,000 increase in
cap ital eq u ip m en t.

B u t w here is th e

p lan n ed .

The

T h ro u g h the

In v estm en t B a n k e r

buys it, alone, or in association w ith
others.

H e pays th e issuer an d th en

re-sells th e securities to those w ith

m oney com ing fro m ?

fu n d s seeking a pro fitab le investm ent.
T h e co rp o ra tio n w hose sound m anage­
m en t and fu tu re prospects ju stify an

By m oving idle cap ital into p rofitable

increase

in d u stria l

in

cap ital

stru c tu re ,

can

activity,

th e

In v estm en t

h a rd ly be expected to go o u t in search

B a n k e r has played no sm all p a rt in

of those w ith fu n d s to invest.

p ro v id in g

I t is at

gain fu l

em ploym ent fo r

th is p o in t th a t the In v estm e n t B a n k e r

h u n d re d s of th o u san d s of A m erican

begins his u se fu l fu n ctio n .

w orkers.

Iowa Investment Bankers Association

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Federal Reserve Bank of St. Louis

30

Fortieth Anniversary

IO W A
Investm ent Bankers
Association

W A L T E R E . Y IE T H
P r e s id e n t
D a v e n p o rt

Orsanized 1935

j OWA m em bers of th e N ational AssoI ciation of Securities D ealers m et in
Des Moines on May 8 to h e a r R obert
W. Baird, T he W isconsin Com pany,
M ilwaukee, and a m em ber of th e board
of governors of th e N ational organiza­
tion, and W illiam Mee, Chicago, field
secretary for th e eig h th d istrict. A bout
fifty w ere p resent, from D avenport,
W aterloo, Cedar Rapids, B urlington,
and Des Moines.

RO Y W . L E R IC H E
S e c r e ta r y
D es M oines

E xchange Commission. It functions
on the theory, w hich in m ost instances
has proved to be a fact, th a t it is b etter
for th e securities dealers them selves
to d raw up th e ir own ru les and reg u ­
lations, and see th a t such are followed,
th a n to have some b ranch of th e Gov­
ern m e n t do it for them . The rules laid
dow n by th e NASD are v ery clear and
definite as to th e business operations
of its m em bers, and m ake no dem ands
th a t every rep u tab le in v estm en t house
is not perfectly w illing to abide by.
As stated above, th e N ational Asso­
ciation of Securities D ealers is resp o n ­
sible to no W ashington agency nor to
any G overnm ent bureau. It condons
no in fractions of its ethics and rules,
and its contact w ith th e SEC is largely
one of consultation.
At th e p resen t tim e th ere are about
3,000 in v estm en t firms in A m erica
w hich are m em bers of th e N ational
A ssociation of Securities Dealers, and
from th e rem ark s of Mr. B aird and Mr.
Mee, it w ould appear th a t every re p u t­
able house in th e co u n try w ould be
eager to affiliate w ith the organization.

W ith few exceptions, m em bers of
th e Iow a In v estm en t B an k ers Asso­
ciation are also m em bers of th e N a­
tional A ssociation of Securities Deal­
ers. F o r purposes of adm in istratio n ,
th e N ational A ssociation has divided
th e co u n try into fo u rteen d istricts,
Iow a being in th e eigh th d istrict. O ther
S tates in th is d istrict are M ichigan,
Indiana, Illinois, W isconsin, and N eb­
raska.
The N ational A ssociation of Securi­
ties D ealers is a self-regulatory org an i­
zation o p eratin g u n d er th e M aloney
Act ad m in istratio n of w hich is u n d er
th e ju risd ictio n of th e S ecurities and

S h aw , McDermutt & Sparks
Investment- Securities
□
Suitable for Investment of Banks,
Institutions and Trust Funds

P ast and p resen t officers of th e
A m erican In stitu te of B anking w ill
join w ith th e In s titu te ’s m em bership
in celebrating its fo rtieth a n n iv e rsa ry
at the an n u al convention to be held
Ju n e 3rd-7th in Boston, M assachusetts,
it is announced by H a rry R. Sm ith,
A. I. B. president, w ho is vice p resid en t
of the B ank of A m erica N. T. & S. A.,
San Francisco, California.
T he program for th e convention has
been designed to include special fea­
tu re s in observance of th e In s titu te ’s
fo rtieth y ear of educational service to
ban k em ployes in local ch ap ters and
study groups th ro u g h o u t th e co untry
w hich now n um ber 385.
N early 2,000 m em bers of the In s ti­
tu te w ho are expected to a tten d th e
convention w ill h ear addresses by n a­
tionally pro m in en t bankers. These in ­
clude R obert M. H anes, w ho is p resi­
den t of th e A m erican B ankers Associa­
tion, and presid en t of th e W achovia
B ank & T ru st Company, W instonSalem, N orth Carolina; F ra n k M. Totton, second vice presid en t of th e Chase
N ational B ank of New York, and Dr.
F red I. K ent, director of th e B ankers
T ru st Company, New York.
A n ational public speaking contest,
debating, d ep artm en tal conferences, an
election of A. I. B. officers for the en su ­
ing year, and a n u m ber of social events
have been arran g ed on th e convention
program .
The convention w ill consist of tw o
general-sessions, one on T uesday m o rn ­
ing, Ju n e 4th, and th e o th er on F rid ay
m orning, Ju n e 7th, and a n u m ber of
dep artm en tal conferences devoted to
special aspects of banking and A. I. B.
activities.
Mr. H anes and Mr. T otton w ill ad­
dress th e opening general session on
Tuesday, Ju n e 4th. Mr. K ent, th e first
national president, w ill address th e
closing general session F riday, Ju n e
7th, at w hich th e form er presid en ts
w ill be honored.
E n te rta in m e n t featu res w ill include
sightseeing to u rs all day M onday, Ju n e
3rd, a picnic and boating trip W ednes­
day afternoon, Ju n e 5th, and additional
trip s th ro u g h the Boston area F rid ay
afternoon, Ju n e 7th. The convention
will close w ith the an n u al A. I. B. ball
F rid ay evening, Ju n e 7th.

Seventy-five Years
□
307 Equitable Bldg.
DES

Norlhwestern Banker

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

MOINES.

June 19JO

Phone 3-6119
IOWA

M inneapolis - Moline P ow er Im ple­
m en t Com pany is th is y e a r celebrating
its D iam ond A nniversary, com m em o­
ra tin g 75 y ears of friendly service to
agriculture.
It w as in 1865, ju st 75 y ears ago,
th a t th e Moline Im plem ent Company,
oldest of th e th re e pioneer concerns,
subsequently consolidated into Minneapolis-Moline, w as founded. O ther com-

31
pan ies involved in th e consolidation
w e re th e M inneapolis T h resh in g Ma­
ch in e Com pany, organized in 1886, and
th e M inneapolis Steel and M achinery
Com pany, founded in 1902.
M inneapolis - M oline points w i t h
p rid e to th e co n trib u tio n s it and its
predecessor com panies have m ade to
a g ric u ltu ra l progress. The Moline Im ­
plem en t C om pany w as a pioneer in
plow design, developed th e first com ­
m ercially successful g rain drill and th e
first practical com bined check row and
drill p lan ter, and b ro u g h t out th e first
stra d d le row cultivator. Its tracto r,
th e M oline U niversal, w as th e first row
crop and g en eral purp o se tracto r. The
M inneapolis T h resh in g M achine Com­
p an y also m ade g re a t co n trib u tio n s to
farm progress, its th re sh e rs and shelle rs being am ong th e first com m ercially
successful th re sh e rs and shellers. The
M inneapolis Steel and M achinery Com­
pan y b u ilt one of th e tw o first really
en g in eered lines of tra c to rs. Its line
of tracto rs, continued by M inneapolisM oline, has been b u ilt along lines now
generally accepted as sta n d a rd for
th re e y ears longer th a n an y tra c to rs
o f m odern design still built.
L eader in p lan n in g and effecting th e
consolidation w as W. C. M acFarlane,
w h o had becom e p resid en t and g eneral
m an a g e r of M inneapolis Steel and Ma­
ch in ery in 1926. U pon th e form ation
o f M inneapolis-M oline in 1929, Mr. Mac­
F a rla n e becam e its p resid en t and g en­
eral m anager, a post he still holds.
M inneapolis-M oline has k ep t u p th e
pion eerin g sp irit of its predecessors,
an d since 1929 h as m ade m an y co n tri­
b u tio n s to farm m ach in ery develop­
m en t. Its H a rv e ste r re p re se n ts th e
o u tsta n d in g co n trib u tio n in h arv estin g
m ach in ery in th e p ast decade. F irs t
intro d u ced in 1934, and now offered in
fo u r po p u lar sizes, it w as th e first light
w eight, high speed, big capacity com ­
b in e for all crops.

GENERAL

Elj

MOTORS

ACCEPTANCE

is engaged primarily in facilitating
wholesale distribution and retail sales
of the following products of General
Motors Corporation and its world'
wide affiliates: Ca d i l l a c , l a s a l l e ,
BUICK,

OLDSMOBILE,

PONTIAC,

automobiles; f r i g i d a i r e
appliances for refrigeration and air
conditioning; d e l c o lighting, power
and heating equipment; GMC trucks;

Ch e v r o l e t

BEDFORD, V A U X H A L L , OP E L , BLI TZ

— foreign made automotive vehicles.
The business consists of investments in
selfdiquidating credits, widely diverse
bed as to region and enterprise, capital
employed being in excessof $80,000,000.

G E N E R A L

MOTORS
INSTALMENT
P L A N

Receive More Currency
Iow a b u siness houses received from
th e F ed eral R eserve B ank of Chicago,
th ro u g h its m em ber b an k s in th e state,
$1,125,990 m ore in cu rren cy in F e b ru ­
ary, M arch and A pril th a n in th e co rre­
sponding period of 1939, it w as dis­
closed in a recen t su rv ey com pleted by
th e F ed eral R eserve B ank of Chicago.

CORP 0 RAT I ON

T

Amberg Elected President
H arold V. A m berg, vice p resid en t
a n d gen eral counsel of th e F irs t N a­
tio n a l B ank of Chicago, w as elected
p re sid e n t of th e A ssociation of R eserve
City B an k ers a t th e closing session of
th e H ot Springs, V irginia, convention.
H e succeeds E d w ard E lliott, vice p re si­
den t of th e S ecu rity -F irst N ational
B an k of Los A ngeles.

A nother indication of th e v ast serv ­
ice perform ed by th e F ed eral R eserve
B ank of Chicago for its Iow a m em ber
in stitu tio n s is seen in a re p o rt of th e
average c u rre n t figures on tra n sfe r of
funds over th e F ederal R eserve Sys­
te m ’s telegraph netw ork. Iowa m em ­
b er banks are cu rre n tly sending ap ­
proxim ately $1,223,200 daily by w ire
to o th er F ederal R eserve m em bers
th ro u g h o u t th e U nited States, w ith o u t
charge. T hey receive on an average of
$1,753,370 daily in th e sam e way, th e
su rv ey shows.
C u rren tly held for safekeeping in th e
g reat v au lts of th e F ed eral R eserve
B ank of Chicago are securities belong­
ing to Iow a m em ber b anks w ith a total
value of $76,650,000.

T he gain is a ttrib u te d to an increased
volum e of business.
A ltogether, $10,918,825 in currency
and coin w as shipped to m em bers of
th e F ederal R eserve B ank of Chicago
in Iow a du rin g th e three-m onth period
as com pared w ith a to tal of $9,792,835
in th e sam e m onths of last year, the
re p o rt states.
The free sh ip m en t of cu rren cy and
coin to and from the Iow a m em ber
b anks in 1939 totaled $79,908,061, of
w hich $77,895,732 w as in curren cy and
$2,203,329 in coin. Of th e total, $47,839,531 w as sent by th e F ederal Re­
serve B ank of Chicago to its Iow a
m em bers, w hile the la tte r sen t $32,168,530 for deposit in Chicago, th e com­
pilation shows.

These

notes

In obtaining short term accommodation,
GMAC issues one standard form of note.
This obligation it offers to banks and in'
stitutions, in convenient maturities and
denominations at current discount rates.

are available, in limited amounts, upon request.

E XECUTI VE OF FI CE N E W YORK

'

B R A N C H E S I N P R I NC I PA L CITIES

Northwestern Banker

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

June 19^0

32

Appointed A . B. A .
Comptroller

Americans Buying More

Jo h n J. Rooney has been appointed
com ptroller of th e A m erican B ankers
A ssociation, it is announced by Dr.
H arold Stonier, A. B. A. executive
m anager.
Mr. Rooney has been w ith th e asso­
ciation since 1913, and served as au d i­
to r of th e organization from 1928 u n til
he w as appointed to his p re se n t post.
He is a n ativ e of N ew Y ork City and
lives in Long Beach, Long Island. Mr.
Rooney is m arried and has th re e chil­
dren.

W ith foreigners buying m ore w ar
planes, A m ericans are buying m ore
pianos, also m ore cam eras and jew elry
and sporting goods and fu r coats. F ac­
to ries are hanging up new records as
th e U nited States public buys m ore
pianos th a n at any tim e since pre-de­
pression days, according to a study of
su rp lu s incom e purchases by N o rth ­
w estern N ational Life Insu ran ce Com­
pany.
W ith im ports of G erm an cam eras
reduced to a m ere trickle, U nited
States buy ers are sw itching m ore and

Federal Discount Corporation
D u b u q u e, Iow a

AUTOMOBILE FINANCE
T i m e P a y m e n t P la n s for
P u rch asers of A u to m o b i le s a n d H o u s e h o ld A p p l ia n c e s

m u m

SMALL LOANS
■ ■ ■
Branches in Iowa— M innesota— W isconsin
C ap ital, S u rp lu s and U n d ivided Profits
E xceed O ne M illion D ollars
■ ■ ■

Short Term Collateral Trust Notes
I n fo r m a tio n on R e q u e s t

m ore to A m erican m ade cam eras, th e
re p o rt states.
In A pril th e A m erican consum er
m ade up for buying postponed because
of M arch blizzards. Com bining sto re
sales for M arch and A pril to elim inate
the effects of th e shifting E a ste r sea­
son, volum e of general m erchandise
sold in these tw o m onths of 1940 is
found to be 6 p er cent above th a t of
th e corresponding tw o m onths of 1939.
D epartm ent store sales of luggage
are dow n sharply, reflecting th e w ip­
ing out of E u ro p ean travel. H ow ever,
dom estic air trav el in th e U nited States
continues its steady gains — a irplane
passenger m iles flown are ru n n in g b et­
te r th a n 50 p er cent ahead of a y e a r
ago.
In th e 236 d ep artm en t stores covered
by th e in su ran ce com pany’s q u a rte rly
survey, sales of fu rs w ere 23.5 p er cent
g reater in th e first q u a rte r of 1940 th an
in th e corresponding period of 1939,
w hile sporting goods dollar volum e
w as up 13.4 p er cent, pianos and m usi­
cal in stru m en ts 12.3 per cent, jew elry
14.6 p er cent, electric household equip­
m ent 5.4 p er cent, and hom e fu rn itu re
4.6 per cent, com pared w ith th e first
th ree m onths of a y ear ago. At the
sam e tim e, d ep artm en t store sales of
luggage w ere off 4.7 p er cent.
In th e field of necessities, m en ’s
clothing has proverbially forecast the
tre n d of sales for o th er d ep artm en t
store m erchandise. Men continue to
buy m ore raim ent, giving th e d e p a rt­
m en t stores 8.8 per cent increased vol­
um e in th is d ep artm ent, and 11.8 p er
cent increase in m en ’s fu n rish in g s
sales for th e first q u a rte r of 1940, com­
pared w ith th e corresponding period of
a y ear ago.

Trust Conference

Iowa’s Leading FHA Mortgagee
FHA LOANS
41/2 % Interest
9 0 % — 25 Years on New Construction
8 0 % — 20 Years on E xisting Construction
WE SPECIALIZE IN SERVICE

M o r tg a g e I n v e s tm e n t C o rp o ra tio n
Fleming Building, Des Moines, Iowa

E. R. HALEY, Vice President

Northwestern Banker

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

June 19W

L. K. WADSWORTH, Secretary

P lans are actively u n d er w ay for th e
E ig h teen th Regional T ru st Conference
of th e Pacific Coast and Rocky M oun­
tain States, w hich w ill be held a t Salt
Lake City, U tah, T hursday, F rid ay and
S aturday, A ugust 15, 16, an d 17, 1940,
u n d er th e auspices of th e tru s t divi­
sion, A m erican B ankers A ssociation, it
is announced by R oland E. Clark, p res­
ident of th e A. B. A. tru s t division,
and vice presid en t of th e N ational
B ank of Commerce, P ortland, Maine.
The tru s t division of th e U tah B ank­
ers A ssociation w ill act as hosts to th is
conference. Jo h n M. W allace, vice
presid en t of th e W alker B ank & T ru st
Com pany of Salt L ake City, is general
ch airm an of th e conference. Mr. W al­
lace has announced th e app o in tm en t
of th e follow ing com m ittee for th e
conference.
Com m ittee on general arrangem ents:
Reed E. H olt, tru s t officer, W alker
B ank & T ru st Company, Salt Lake
City, chairm an; Claron O. Spencer, as-

<

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33
sista n t tru s t officer, Zion’s Savings
B ank & T ru st Com pany, Salt Lake
City, vice chairm an; R. S. Tyson, as­
sista n t tr u s t officer, F irs t Security
B ank of U tah, N. A., Ogden; J. L.
Preece, a ssista n t tr u s t officer, T racy
Loan & T ru st Com pany, Salt Lake
City.

Elected Treasurer
C hester L. Price, ad v ertisin g and
publicity m an ag er of th e City N ational
B ank and T ru st C om pany of Chicago,
has been elected tre a s u re r of The Chi­
cago F ed erated A dvertising Club for
th e sev en th consecutive year. He is a

“W hat is th is product you as a
b anker, are try in g to sell, anyw ay?
It is n ’t a bank, it isn ’t any thing in the
m aterial sense. It is a service or a
bundle of services, and any service is
largely a m a tte r of personalities, or
people. So w h a t you are selling are
th e abilities, th e personalities of the
m em bers of y o u r staff.
“I know th a t you are selling safety
for deposits, b u t you don’t m ake any
m oney on deposits unless you do som e­
th in g w ith them . W h at you do w ith
th is m oney depends chiefly on the
m en in your bank. I know of no busi­
ness th a t is m ore personalized, in spite
of th e ancient trad itio n th a t th e b an k er
w as a stony-faced, fishy-eyed, blood­
less citizen w ho alw ays said “N o” to
every req u est for some service.
“B ankers are facing some m ighty
stiff com petition in the lending field.
The g overnm ent agencies, p riv ate loan
com panies, finance corporations and
others are cu ttin g into w h at once w as

V. W . B

y o u r field. You are lim ited by law,
also, as to w h at kinds of loans you can
make.
“B ut in spite of these handicaps,
m ay I suggest th a t you sit dow n w ith
yourselves and ask th is question:
“W hat can m y b ank do for th e candy
m erch an t dow n th e street, for th e
te n a n t farm er w ho is w ondering
w h eth er to re n t a n o th er forty acres,
for th e young carp en ter w ho has been
studying n ights and w an ts to s ta rt up
as a contractor, for th e w idow w ho
has been left tw o children and $12,000,
for th e teach er w ho can m anage to
save about $15 a m onth if he scrim ps,
for th e m a n u factu rer w ho is contem ­
p lating in stalling some new equip­
m ent, for the grocery w holesaler, for
for th e salesm an of insurance or se­
curities, for th e yo u n g ster of ’teen age
w ho is so proud of his little b ank
account, for th e old couple w ho m ust
m ake th e ir m eagre savings last them
to th e end?” In short, le t’s sit down

r ew er

Co .

M u n ic ip a l B o n d s
Q u o t in g f r o m th e N ew Y o r k H e r a l d T r i b u n e o f M ay 9 t h . 1 9 4 0 :
“ B e c a u s e o f th e L e v e l D e b t P r o g r a m a n d th e s te a d y d e b t r e tir e ­
m e n t s w h ic h h a v e b e e n in p r o g r e s s f o r m a n y y e a r s , th e c r e d it o f
S o u th D a k o ta is r a p id ly b e c o m in g e n v ia b le .”

FIRST N A T -S O O LINE BLDG.

C H E S T E R L. P R I C E

founder m em ber of th e club and w as
its first tre a s u re r w hen th e o rganiza­
tion w as form ed in 1934 w ith 75 nam es
on its m em bership roster. It now has
15 affiliated clubs and n early 700 in d i­
vidual m em bers.
E.
R. R icher, vice p resid en t in
charge of ad v ertisin g of H a rt Schaffner
& M arx, is th e clu b ’s new president.

MINNEAPOLIS

BONDS
Public U tility

W hat Bankers Have to Sell
r R E D E R IC A. R U SSELL, professor
I of b u siness o rganization and opera­
tion a t th e U n iv ersity of Illinois,
strik e s th e rig h t keynote in a recen t
issue of The M id-C ontinent B anker,
w h en he addresses th e follow ing to
bankers:
O ver-C ou nter F a cilities
in A ll M arkets
P rim ary M arkets in Iow a
S ecu rities

In d u stria l
R a ilr o a d
M unicipal

A .G A L L Y N « ™ C O M P A N Y
Incorporated
100 W e s t M o n r o e S t r e e t , C h ic a g o

McGUIRE, WELCH & CO.
2 3 1 So. LaSalle
C H IC A G O

Bankers Tr us t Bldg.
D E S M O IN E S

N ew

Y ork

R e p r e s e n ta tiv e s :

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

O m aha
D e s M o in e s

B o sto n
C ed a r R a p id s

Northwestern Banker

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

Jane 19W

34

CALL IN YOUR

Douglas-Guardian Man
He’ll help you
find good loans

“ Inventory
H u n d r e d s o f r e c e n t e x p e r ie n c e s p r o v e th a t a ttr a c tiv e lo a n o p p o r tu n itie s e x is t
e v e r y w h e r e , o fte n u n s u s p e c te d b y th e b a n k e r w ith id le m o n e y . L ik e w is e th e
b u s in e s s e x e c u tiv e w ith a n e e d fo r c a p ita l is u n a w a r e th a t h is o w n in v e n to r y
r e p r e s e n ts A - l c o lla te r a l.
W h y n o t ta lk o v e r w ith a tra in ed D o u g la s -G u a r d ia n r e p r e s e n ta tiv e , th e
p o s s ib ilitie s fo r a ttr a c tiv e in v e n to r y lo a n s a m o n g y o u r c lie n ts . N o o b lig a tio n .
O ur e x p e r ie n c e s e r v in g b a n k s, b y c o n v e r tin g in v e n to r y in to
F ree on
b a n k a b le W a r e h o u s e R e c e ip ts , d a te s b a ck 17 y e a rs.
Request

Field Warehousing byDouglas-Guardian
D O U G L A S -G U A R D IA N W A R E H O U SE

CO RP.

N ation-w ide F ield W areh o u sin g Service
100 W. Monroe St., Chicago, 111.
118 No. Front St., New Orleans, La.
N e w Y o r k , N . Y. C i n c i n n a t i , O.
Dallas, Tex.
Los A n g e le s , Cal.
R o c h e s t e r , N . Y.
E a s t o n , Md.
A t l a n t a , Ga.
S a n F r a n c i s c o , Cal.
C le v el a n d , O. T a m p a , F l a , S p r in g f ie ld , Mo. M e m p h i s , T e n n . P o r t l a n d , Ore .

iH!Ü

¿ [ ih

Up
TH E HOTEL OF TO D A Y

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Delving into the future, the designers of the
recreated Fontenelle have set the style for the
hotel of the next decade. Beauty and comfort
are emphasized in the new features and in
the new interiors throughout the hotel including lobbies, guest rooms, dining and
entertainment rooms, and the convention facil­
ities-all of which depict the fashion of 1940.

y

V/
V/
V/
N/
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V/
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>/

of ¿/onm nm

HOTEL

FONTENELLE

y

OMAHAmNEBRASKA

y
V

N/

y

Northwestern Banker

V/
V/
V
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V/

y

N/
V/


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

y

y
June 19JO

and th in k in specific term s of definite
services we can ren d er to flesh-andblood people we know. L e t’s talk to
scores of these people and le t’s ask
th em w h at th ey w ould like to have
th e ir bank be and do for them . L e t’s
analyze our product from th e con­
sum er angle, as the sm a rt m anufac­
tu re r does. T hen we, too, can build
th e kind of a product th ey w ill buy, a t
a profit to u s.”
A pproxim ately 15 p er cent of th e
foreclosures- are on com m ercial p ro p ­
erties and th e re st on hom es, th e divi­
sion estim ates. Its survey is based u p ­
on m onthly rep o rts from sheriffs, coun­
ty and co u rt clerks, recorders and
o th er local g o vernm ent officials in 1,600
com m unities th ro u g h o u t th e country.

Appointments
G u aran ty T ru st Com pany of New
York announces th a t at a m eeting of
th e board of directors, the follow ing
ap p ointm ents w ere made: A rth u r E.
B urke, from corporate tru s t officer to
vice president; C harles M. Schm idt,
from second vice presid en t to vice
president; Oliver R. Brooks, H erb ert
E. Tw yeffort, W infred C. Bloom, H a rry
J. Kelly and W illiam A. M cRitchie,
from a ssistan t tru s t officers to tru s t
officers. Joseph C. B u ttery w as ap ­
pointed assistan t secretary and S tan­
ley H. Brow n, a ssistan t credit m an ­
ager.
A rth u r E. B urke, w ho w as born in
New York City, en tered th e service of
th e com pany, as a m essenger, Septem ­
b er 30, 1910, and w as tra n sfe rre d to the
tru s t d ep artm en t in May, 1911. A fter
serving th e com pany in various cleri­
cal and official capacities, he w as p ro ­
m oted to corporate tru s t officer, Ju n e
9, 1927. He is a m em ber of th e execu­
tive com m ittee of th e C orporate F i­
duciaries A ssociation of New York.
Mr. Schm idt, w ho w as born in
Brooklyn, joined th e G u aranty staff in
October, 1911, after being associated
four and one-half y ears w ith th e L e­
high Valley Coal Sales Company. A fter
serving in th e tran sfer, tellers and
custody divisions of th e tru s t d ep art­
m ent, he w as appointed a ssistan t sec­
re ta ry in N ovem ber, 1919, and second
vice presid en t in Septem ber, 1927. Mr.
Schm idt is a m em ber of th e executive
com m ittee of th e New York Stock
T ran sfer A ssociation.

Life Is Like That
W ife: “Tom, it’s ju s t about a y ear
since our honeym oon, w hen we spent
th a t glorious day on th e sands.”
Tom (gloom ily): “W e little th o u g h t
th e n w e’d be spending our first an n i­
v ersary on th e rocks.”

35

N EBRA SKA
IN V E S T M E N T

BA N KERS

A S S O C IA T IO N

based on in terest of 4 p er cent a t par,
w as urged by th e N ebraska City Cham ­
b er of Commerce. The bid w ould n et
each of th e 9,308 sh ares of stock n ear­
ly $86.
The proposal w as subm itted to th e
city after a surv ey m ade by engineers
indicated th e issue could be re tire d in
20 y ears by revenue received from
tolls.
An estate of $616,541 w as left by Mrs.
K atherine K. B axter, w idow of W il­

HOWARD BUFFET
P resident
Omaha

C E C IL W. SLOCUM
Secretary

, of B uffett &

H Com pany, Omaha, new ly-elected
p resid en t of th e N ebraska In v estm en t
ow ard

buffett

B ankers A ssociation, has announced
th e follow ing m em bers of th e execu­
tive com m ittee of th e association to
serve d u rin g 1940:
C hairm an, L aurance M. McCague,
T he N ational C om pany of Omaha; J.
Clifford R ahel, W achob-B ender Corpo­
ration; H arry G reenw ay, G reenw ay &
Com pany; R. W are H all, W are H all &
Com pany, and M anning E. H andler,
S tern B ro th ers & Com pany, all of
Omaha.
Two Om aha p ersonal finance com pa­
nies v o lu n ta rily su rre n d e re d th e ir li­
censes and agreed to liquidate recen tly
on req u est of S ecretary of S tate H a rry
R. Sw anson of N ebraska, follow ing in ­
v estigation of re p o rts th e y w ere evad­
ing th e state p ersonal loan law.
M anagers of tw o o th er firm s also
w ere called in and told th e y m u st be
careful to stay w ith in th e law.
If th e E u ro p ean situ atio n keeps
grow ing w orse, th e city of Council
Bluffs, Iowa, opposite Om aha on th e
east b an k of th e M issouri R iver, w ill
be unable to reissue th e In d ian Creek
bonds a t th e low er in te re st ra te of 3
p e r cent, C arleton D. Beh of Des
M oines w arn ed th e Council Bluffs city
council a t a recen t m eeting.
B eh rep eated his offer to reissue th e
4 p er cent bonds a t 3 p er cent and de­
clared th a t, w ith his plan, th e city
w ould save $108,000.
R eplying to criticism voiced by City
T re a su re r C. W. Gould, Beh said his
schedule included re tire m e n t of about
$60,000 of bonds th is y e a r by u sing th e
levy fu n d now available for th a t p u r­
pose, th a t th e bonds w ould m atu re
m ore rap id ly and th e cash balances
w ould be k ep t low er, and th a t th e city
w ould have th e 1 p er cent a n n u al in ­
terest.
“If th e E u ro p ean situ atio n continues
to grow w orse, you w ill be unable to

re fu n d th e bonds at 4 per cent. On the
o th er hand, if th e m oney m ark et
should change in y o u r favor, you can
refu n d these bonds again in five y ears,”
he said.
T reasu rer Gould took issue w ith Beh
on th e am ount he said th e city w ould
save. “H ow do you propose to save
$100,000 w hen savings do not figure
m ore th a n one-half th at? I th in k th e
w ay you are figuring p aym ent is ac­
cording to th e p re se n t schedule,” he
stated.
Beh said his figures w ere “correct to
th e p en n y .”
Gould suggested the city council
stu dy th e proposal carefully before
tak in g any action. Beh w as asked to
su bm it his proposal in w ritin g w ith in
five days.
H alsey, S tuart & Com pany, Inc., re ­
cently offered $300,000 of City of N e­
b rask a City, N ebraska, 1% p er cent re ­
funding bonds due serially Ju n e 1,
1941, th ro u g h 1945; Ju n e 1, 1950; Ju n e
1, 1955. The bonds w ere issued for
refu n d in g purposes.

F ig u res on in v estm ents in U nited
States goverm ent savings bonds show
th a t from M arch 1, 1935, th ro u g h De­
cem ber 31, 1939, N ebraska ran k ed sev­
e n teen th am ong th e states in total
sales. Sales in N ebraska totaled $62,927,875.
F o r th e y ear 1939, sales in N ebraska
to taled $13,379,156, and in Om aha $4,426,837.
N ebraska City, N ebraska, is try in g

to buy th e privately-ow ned W aubonsie
bridge across th e M issouri R iver there.
As a special session recently, city
com m issioners of N ebraska City ac­
cepted a financing proposal m ade by
th ree Chicago bond houses and in ­
stru cted M ayor F. E. Z iegenbein and
City A ttto rn ey V. E. T yler to subm it
a bid of $800,000 to th e bridge com pany.
A cceptance of the proposal, w hich
calls for issuance of rev enue bonds

liam F. B axter, Omaha d ep artm en t
store head and civic leader, according
to an inv en to ry filed recently.
Am ong the estate assets w ere 2,825
sh ares of stock in T hom as K ilpatrick
& Company, th e store w hich Mr. B ax­
te r headed, w o rth $425,000; 160 shares
of U nion Pacific stock w o rth $10,150;
30 shares of Om aha N ational B ank
stock, and o th er securities.
B ulk of th e estate has been divided
betw een Mrs. K ath erin e B. Campbell
and Mrs. E llanore B. Judd, both of
Omaha, daughters.

Independent
H usband: “L et’s have some fun th is
evening!”
Bored Wife: “O. K., and please leave
the light on in the hall if you get hom e
before I do.”

L

a

m

B

r

8c
E

s o
o

Co.

s t a b l is h e d

.

1874

141 W. Jackson Blvd., Chicago
50 Broadway, New York
Our b ra n ch o ffic e s are
equipped to render com ­
p le te b ro k era g e serv ice
in th e handling of grain
(ca sh a n d fu tu r e s ),
stocks, bonds, cotton and
provisions. Private wires
direct to all m arkets.
B R A N C H O F F IC E S
N e w Y o rk , N . Y .
B u ffa lo , N . Y .
C e d ar R a p id s , Iow a
D a v e n p o rt, Iow a
D e s M o in e s , Iow a
D u b u q u e, Iow a
F o r t D o d g e , Iow a
Iow a F a lls , Iow a
M a rs h a llto w n , Iow a
M a s o n C it y , Iow a
S io u x C it y , Iow a
S to rm L a k e , Iow a
W a te rlo o , Iow a
F r a n k fo rt, Ind.
L a F a y e tte , Ind.

M in n e a p o lis , M in n .
St. P a u l, M in n .
K a n sa s C it y , M o .
St. L o u is , M o .
O m a ha , N e b .
L in c o ln , N eb .
B lo o m in g to n , 111.
D e K a lb , 111.
G ilm a n , 111.
G a lesb urg , 111.
L a S a lle , III.
P e o ria , III.
Q u in c y , III.
M usko g ee , O k la .

M E M B E R S O F L E A D IN G S E C U R IT Y
a n d C O M M O D IT Y E X C H A N G E S

Northwestern Banker

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

s

n

June 194-0

36

I

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(M e m b e r F e d e ra l D e p o s it Insurance


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

C o rp o ra tio n )

37
since 1891, died quietly a t his hom e
recently.
F ro m 1891 to 1911 he w orked in the
local b ank as bookkeeper and vice
president, and again from 1916 to 1928.
In th e la tte r y ear he w as elevated to
th e presidency. F o r five y ears afte r
1911 he w as vice presid en t of Stockgro w ers’ N ational B ank of Cheyenne.
Also p a rt of his business life w as a t
K ingfisher, Oklahoma.

NEBRASKA
NEWS
C. C. N E U M A N N
P resident
O akland

Anniversary
C om m em orating its fiftieth a n n iv e r­
sa ry as a n atio n al bank, th e F irs t N a­
tio n al B ank of T ek am ah last m o n th
held open house for its m an y custom ­
ers and friends. H u n d red s of people
v isited th e b a n k d u rin g th e afternoon,
an d in th e evening everyone w as in ­
v ited to a barbecue held in th e local
baseball park. A n u m b er of b an k ers
w ere p re se n t from Om aha and Lincoln.

Another Anniversary
A n o th er N eb rask a b an k celebrating
its fiftieth a n n iv e rsa ry last m o n th w as
th e B ank of Y utan, and it also held
open house for th e people in th a t com ­
m unity.

The Boss Chain Presents
The New Castle Hotel
Com pletely new from th e m odern
fro n t to th e efficient k itchen, th e coffee
shop of th e Castle H otel, Omaha, final
step in an im p ro v em en t pro g ram
w hich included th e e n tire building,
w as com pleted early th is spring. The
Castle H otel, one of th e m ajo r u n its in
th e chain of w ell-know n Boss H otel
C om pany h o stelries th ro u g h o u t th e
m iddle w est, h as been com pletely ren o ­
v ated since th e above firm took over its
m anagem ent. George A. P ap in eau is
th e m an ag er of th e Castle Hotel.
L ongitu d in al p anelling of th e w in ­
dow s on th e stre e t e n tran ce of th e new
coffee shop is th e basic a ttra c tio n to
th e p a tro n as he n ears th e Castle H o­
tel. B ru sh ed b rass, a form of m arble
tile and a dash of th e ru stic finish off
th e a ttra c tiv e e n tran ce w hich m atches
th a t of th e W estw ard Ho tap room and
th e lobby.
The shop can easily be classified into
tw o sections, one being th e booth and
co u n ter section, w h ere all th e sh o rt
ord er eq u ip m en t and soda fo u n tain are
placed, and th e o th e r th e raised or
table section.
In th e booth and co u n ter section
careful a tte n tio n w as given to th e
tre a tm e n t of th e w alls, floor and ceil­
ing so as to g u ard ag ain st any placing
of a tte n tio n on th e shape of th e room.
H ere w a ln u t p anelling and h o rizo n tal­

WM. B. H U G H E S
Secretary
Omaha

ly strip ed Salubra covering on th e
w alls creates th e illusion of w idth. The
floor is a checked, ra th e r d ark terrazzo
w hile th e ceiling is of th e new, im ­
proved acoustic tile in a light color.
The sh o rt order equipm ent includes
griddles, fryers, hot plates, toasters,
etc., all placed u n d er th e service coun­
ter. This w as done to avoid th e dis­
play of th e less sightly equipm ent and
to enable the sh o rt order cook to face
th e patrons. An ingenious dow ndraft
d uct installed and a rran g ed so as to
catch all odors and fum es from th e
griddles and fry ers solved th e v e n tila ­
tio n problem .
A rran g em en t of th e equipm ent and
inclusion of a sm all steam table to take
care of table d’hote luncheon entrees
and sim ilar item s m akes co u n ter serv ­
ice available from th e lobby. W est­
w ard Ho tap room and th e stre e t en ­
trance.
The n ex t tim e you are in Omaha, it
w ill be w ell w o rth y o u r w hile to visit
th e Castle Hotel, and inspect its m od­
e rn and a ttractiv e equipm ent and fu r­
nishings.

New Service
A new service for inactive checking
accounts is announced by th e Gering
N ational Bank. It refers to a new p e r­
sonal check book w hich m ay be p u r­
chased at the b ank and w hich w ill
elim inate the m onthly checking ac­
count service charge for inactive ac­
counts.

Dividend
The final dividend paym ent has been
received by th e depositors of th e de­
fu nct E nola S tate Bank. T his m akes
the fo u rth dividend paid.

In Nebraska
P au l W. Shooll, w ho for the p ast sev­
eral y eárs has been looking afte r edi­
torial and circulation activities in N e­
b rask a for th e N o r t h w e s t e r n B a n k e r ,
is p lanning an o th er trip in the state
d u rin g th e m onth of June. W hile it
w ill take some tim e for Mr. Shooll to
get around to call on all his m any
b an k er friends, eventually he w ill be

Seventy-five Years
T he Otoe County N ational Bank, N e­
b rask a C ity’s oldest b anking in stitu ­
tio n in years of continuous service,
celebrated its 75th b irth d ay last m onth.
The celebration passed w ith o u t cere­
mony. B usiness w as conducted as u s­
ual th ro u g h o u t th e day. C ashier Jo h n
Stocker opened co n g ratu lato ry tele­
gram s from banks th ro u g h o u t th e m id­
dle w est.
In addition to th e telegram s, the
b ank received several bonquets of
flowers from ban k s and custom ers.
C hartered on May 8, 1865, gro w th of
th e b ank tallies w ith developm ent of
the W est after th e Civil W ar. Its de­
posits have grow n from $37,405.75 on
J a n u a ry 1, 1866, to $660,680.70, as of
th e latest statem ent.

M cEndrec Dies
C harles C. M cEndree, presid en t of
F a rm e rs N ational Bank, C entral City,
w ith w hich he h ad been associated

PAUL W. SHOOLL

in y o u r bank, and we w ill appreciate
an y cooperation you can give him. He
is alw ays on th e lookout for new s
item s, such as change in officers, re ­
m odeling projects, or o th er item s of
in terest, and w ill im m ediately send
th em in to our office for publication.
Northwestern Banker


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

June 19W

38

• N E B R A S K A
Dies in Milford
E d w ard H. S tray er, 91, p re sid e n t of
th e F a rm e rs and M erchants B ank a t
M ilford, died recen tly a t his hom e a t
Milford. He had lived 60 y ears in
Sew ard county, and h ad been pro m i­
n e n t in M ilford civic affairs.
Since 1903 he h ad been p resid en t of
th e F arm e rs & M erchants Bank.

Fremont Death
F re m o n t’s b an k s closed recen tly in
resp ect to C harles H. B ru n n er, 86,

N E WS

p ro m in en t N ebraska d ruggist w ho died
a t his hom e there. Mr. B ru n n er had
been a director of th e F rem o n t N a­
tional B ank for the p ast 43 years, since
1897.

Name New President
Cecil Tooley w as elected presid en t of
F a rm e rs N ational Bank, C entral City,
a t a special m eeting of th e board of
directors, to succeed th e late Charles
C. M cEndree.
E ric W rig h t w as nam ed executive
vice p resid en t in addition to his duties

.
as cashier. W. E. Reed of Om aha re ­
tain s his position as vice president.
Carl E. E rickson and R oller Tooley, Jr.,
w ere elected a ssistan t cashiers.
P resen t at the m eeting w ere Mr.
Reed of Omaha and F. H. Connor of
Chicago, w ho are directors.

Resigns
Miss V era M cK enney has resigned
h er position in the R ichardson County
Bank, F alls City, w here she h ad been
em ployed as bookkeeper and teller for
the p ast 16 years. A fter a few w eeks
of re st at th e hom e of h e r sister, Mrs.
C. O. Davis and Mr. Davis, in Chicago,
she hopes to resum e w ork again.

Anniversary

Charter No. 209

First National Bank
of Omaha

In 1890 a group of progressive citi­
zens decided th a t th e facilities of a
bank w ould be m ost acceptable to th e
new tow n and th ey organized th e
F a rm e rs B ank of Cook. R ecently th e
b ank observed its fiftieth an n iv ersary ,
a record of w hich any business in stitu ­
tion m ay w ell be proud, an d a ban k
m ay especially feel gratification in th e
excellent achievem ent.

Assistant Cashier
A t a m eeting of th e officials of th e
F irs t N ational Bank, H ay Springs,
A nna M argaret P o tte r w as elected as
th e a ssistan t cashier. Miss P o tte r be­
gan w orking at th e b ank A pril 15th.
She took th e place of R udy L aursen
w ho resigned.

The

Returns to Fremont
J. M. Sorensen, F rem ont, re tu rn e d
recently from W ashington, D. C.,
w here he conferred w ith federal loan
agencies reg ard in g th e low er P latte
Valley irrig atio n d istrict and attended
sessions of the U nited States C ham ber
of Commerce national convention. Be­
fore going to W ashington, Sorensen a t­
tended th e A m erican B ankers Associa­
tion n ational convention in H ot
Springs, V irginia.

Oldest National Bank
From Omaha West
Nationalized 1 863
O F F IC E R S
T . L . D a v i s ..............................................P r esid en t
O. H . E l l i o t t ........................A ssista n t
F . W . T h o m a s .................................V ic e P r e s id e n t
C. H . V e b e r ............................. A ss is ta n t
J . F . M c D e r m o t t ...............................................V ice P r e sEid. e n
F t. J e p s o n .......................... A s s is ta n t
C.
D . S a U n d k r s ............................................. V ic e P r e sid
E . e nNt . S o l o m o n .
.A s s is ta n t
J . T . S t e w a r t , I I I , V ic e P r e s , an d C ashier
J . F . D a v i s ................................A ssista n t
A.
H . Ch i s h o l m .................................. A ssista n t C ashHier
. A . A r n s b e r g e r ................ A s s is ta n t

C ash ier
C ash ier
C ash ier
C ash ier
C ashier
C ash ier

W . E . S p e a r ...................................T ru st Officer
E . G. S o l o m o n . . . . A ss is ta n t T ru st Officer

M em b er
F ed era l R eserv e System

Northwestern Banker

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

June 19JO

M em b er
F ed eral D e p o s it In su ran ce C orporation

Elect President
A t a m eeting of the board of direc­
tors, E d w ard M. G allagher w as elected
p resid en t of th e F irs t N ational B ank of
O’Neill, to fill th e vacancy caused by
th e death of Jo h n P. M ann.
Joe A. M ann w as elected a d irector
to com plete th e board of directors of
th e bank, w hich now is E d w ard M.
G allagher, H. J. B irm ingham , E. T.
Campbell, Mrs. E. F. G allagher and
Joe A. M ann.

The modern and attractive lobby-lounge of the Castle Hotel.

OMAHA'S OUTSTANDING HOTEL VALUE
300 FIREPROOF ROOMS
With Private Toilet
$ 1 .5 0 and $1.75
Edw. A. Boss
Owner

With Private Bath
$ 2 .0 0 , $ 2 .2 5 and $ 2 .5 0

Castle H otel
Omaha, Nebraska


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

Geo. A. Papineau
Manager

40
ors, banks, insurance com panies, and
th e g overnm ent itself w ill suffer irre ­
parable trem endous loss and dam age.”
E llsw orth M oser, vice p resid en t of
th e U nited States N ational B ank of
Omaha, and W illiam Saw tell, p resid en t
of th e Stock Yards N ational B ank of
South Omaha, have been elected m em ­
bers of th e executive com m ittee of th e
Omaha B etter B usiness B ureau.
W. D ale Clark, presid en t of th e
Om aha N ational Bank, F ord E, H ovey,
p resid en t of th e Occidental B uilding
and Loan A ssociation, and W allace
Spear, of the F irs t N ational Bank, w ere
elected directors of th e b u reau for
th ree years; Mr. M oser and Mr. Saw­
tell for tw o years, A lv in E. Johnson,
presid en t of th e Live Stock N ational
B ank of South Omaha, for one year.

T

H E Om aha C ham ber of Com m erce
recen tly condem ned t h e JonesW heeler farm cred it bill pending in
congress and called on N ebraska congressm en and th e senate a g ric u ltu ra l
com m ittee to oppose it. In a threepage resolution sen t to N eb rask a senato rs and rep resen tativ es, th e cham ber
board charged th a t th e bill, by reorganizing th e farm cred it system and retiring th e capital stock of th e F ed eral
lands banks, w ould “delegate unprecedented, even dictato rial pow er over th e

a g ric u ltu ral in terests of th e U nited
States in one person, th e governor of
th e farm credit ad m in istratio n .”
F o u rteen reasons w ere listed for opposing th e bill,
One of th em was:
“The bill w ould re su lt in m aintenance of subm arginal farm ers by sub­
sidy at su b stan tial economic loss, creatin g com petitive conditions for the
th rifty farm er w hich he w ill be unable
to m eet, and finally th e ag ricu ltu ral
in terests, th e non-governm ental invest-

Mrs. W. D ale Clark, wife of th e p res­
ident of th e Om aha N ational B ank,
w as elected tre a su re r of th e F o rtn ig h t­
ly M usical Club of Om aha a t the a n ­
nu al m eeting recently.
J. F. M cD erm ott, vice p resid en t of
th e F irs t N ational B ank of Omaha, w as
to address th e 264 candidates for de­
grees a t C reighton U n iv ersity ’s com­
m encem ent May 30th in Omaha.
W alter W . H ead, form er O m aha
b an k p resid en t and now a St. Louis
in su ran ce executive, w as re elected
presid en t of th e n ational council of th e
Boy Scouts of A m erica recently a t a
m eeting in O klahom a City.

O u r B u s in e s s Is B u ilt
o n S e r v ic e R e n d e r e d
Let U s S e r v e Y ou . . . . W rite U s

L iv e S lock N ation al B an k
O m aha
( M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n )

'Northwestern Banker

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

June 19J0

R ichard E. V an Zandt, 68, form er
presid en t of th e Live Stock N ational
B ank of South Om aha from 1923 to
1927, died recen tly a t F o rt W orth,
Texas. Mr. Van Z andt had been active
in b an king circles for m any years.
F ro m 1901 to 1903, he w as in th e
P hilippine Islands as a rep resen tativ e
of th e U nited States T reasu ry D ep art­
m ent. A fter leaving Omaha, he w en t
to St. A ugustine, Florida, as receiver
for th e F irs t N ational B ank there.
P aul H. B urke, d ep artm en t m an ag er
of th e F irs t N ational B ank of Omaha,
w as elected p resid en t of th e Omaha
chapter, A m erican In stitu te of B ank­
ing a t th e an n u al election of th e b oard
of governors. He succeeds H a rry Con­
n er of th e Occidental B uilding an d
L oan A ssociation.
O ther ch ap ter officers elected include
Jjouis Barta, vice president, and T h eo­
dore Spaustate, tre a su re r.
G w yer H. Y ates, form er p resid en t of
th e U nited S tates N ational B ank of
Omaha, re tu rn e d to Om aha recen tly on
a business trip and for a v isit w ith
friends. Since his re tire m e n t as head

41

N E B R A S K A
of th e bank, he has been traveling,
m aking his h e a d q u a rte rs at S anta B ar­
bara, C alifornia.
Chief Ju stice R ob ert G. Sim m ons of
th e N eb rask a Suprem e Court, w as
prin cip al speak er a t th e th irty -fo u rth
annual d in n e r of th e O m aha chapter,
A m erican In stitu te of B anking, a t th e
P ax to n H otel in Omaha. He w as in ­
trod u ced by Ford E. H ovey, p resid en t
of th e O ccidental B uilding and Loan
A ssociation, w ho is reig n in g k in g of
Ak-Sar-Ben.
E lected to the board of g overnors of
th e c h ap ter w ere L ou is Barta, Live
Stock N ational Bank; P au l B urke, F irs t
N ational; E th el M ellor, Om aha N a­
tional; R alph M iller, U nited States N a­
tional.

N E WS

Jack R. Ivnicely of th e F ed eral Re­
serve B ank of K ansas City, Omaha
b ranch, received th e 1940 oratorical
contest cup aw arded by th e Omaha
chapter, A m erican In stitu te of B ank­
ing.
M iss J essie Clark, d au g h ter of Mr.
and Mrs. W . D ale Clark, has been

elected p resid en t of n ex t y e a r’s senior
class a t M acM urray College, Jackson­
ville, Illinois.
She is a m em ber of th e P hi Nu lite r­
a ry society, has been sports editor for
th e G reetings, stu d en t new spaper, and
th e Illiwoco, yearbook; has been a

m em ber of the A thletic A ssociation
and th e college hockey team each year,
and this year served as secretary of th e
Y. W. C. A.
H. W . An w ay of Ames, Iowa, director
of th e F a rm S ecurity A dm inistration
in Iowa, came to Omaha, May 16th as
secretary of the P roduction C redit
C orporation, a u n it of the F a rm Credit
A dm inistration. He w as elected to th e
office to succeed H. A. V iergutz, w ho
w as elected vice president. The PCC
supervises activities of 42 local associa­
tions in Iowa, N ebraska, W yom ing and
South Dakota.

R e tu rn in g recen tly from California,
w h ere th e y sp en t th e w in ter, w ere Mr.
and Mrs. D. P. H ogan. Mr. H ogan re ­
tire d recen tly as p re sid e n t of th e F e d ­
eral L and B ank of Omaha, w hich he
served for m an y years. T hey sp en t
th re e and a half m o n th s in Los A nge­
les and m ade trip s to S anta B arbara,
San Diego and o th e r cities.

SELL YOUR BANK
T h e “ W a lt e r s ” W a y
W it h o u t P u b lic it y
Q u a lified , ca refu lly in v e stig a ted ban k
e m p lo y ee s fu rn ish ed free
T H E C H A R L E S E. W A L T E R S CO.
O m aha, N eb ra sk a

M ain Banking Floor, World’s Fair Office, M anufacturers Trust Com pany

AN INVITATION
TO V IS IT

THE

BANK OF TOMORROW
Hotel
ANKERS who visit the New York World s Fair

Wellington

B

are cordially invited to stop at the World’s

Fair Office of M anufacturers Trust Company, the
Bank of Tomorrow. Here in the very heart of the

W e are h a p p y to list am ong

Fair you will find a beautiful bank — modern,

o u r re g u la r guests, a larg e n u m ­

spacious, attractively furnished, air conditioned

b e r of th e h a n k in g fra te rn ity .

—ready to serve you in every way.

Y ou too w ill th o ro u g h ly e n jo y
o u r C ou rtesy an d H o sp ita lity .
S u r p r is in g ly R e a so n a b le R a tes
R o o m s W ith B a th

$2.00— $2.50

F a rn a m a t 18th S treet
OM AHA


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Federal Reserve Bank of St. Louis

MANUFACTURERS TRUST
COMPANY
Constitution Mall at Washington Square,
World’s Fair Grounds
PRINCIPAL OFFICE: 55 Broad Street, New York

W o r ld ’s F a i r O ffice:

68 C O M P L E T E B A N K I N G

O F F IC E S IN G R E A T E R N E W

YORK

M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o r p o ra tio n

Northwestern Banker

June 1940

42

N E B R A S K A
R ecently m id w estern business m en
and ban k ers, including 20 heads of
Om aha en terp rises, w ere invited to a
$10 a plate d in n er by th e B eatrice, Ne­
braska, C ham ber of Com m erce to help
pay for new C ham ber of Com m erce
furn ish in g s there.

N E WS

“To get even,” each presid en t w as
allow ed tw o m in u tes follow ing th e
m eal to “in su lt” th e B eatrice C ham ber
for charging so m uch for th e meal. No
one neglected to avail him self of the
o pportunity.
Am ong the O m ahans w ho attended

were: AV. Dale Clark, Om aha N ational
Bank; A lvin E. Johnson, Live Stock
N ational Bank; AAT. D. H osford, Jo h n
Deere Plow Company, and F ed eral
R eserve B ank director, W illiam M.
Jeffers, U nion Pacific system ; A. A.
B ow m an, N o rth w estern Bell Tele­
phone Company; A\7. H. S ch ellb erg,
U nion Stock Yards Com pany of Om aha.

New Building

Out-of-Town Banks
O u t-o f-to w n banks and bankers w ill find here
c o m p lete b a n k in g fa c ilitie s fo r p ro m p t and
econom ical handling o f accounts in Chicago. We
w ould appreciate the opportunity o f serving you.

C i t y N a t io n a l B a n k
ANI» TRUS T C O MP A N Y o f C h i c a g o
2 0 8

S O U T H

L A S A L L E

S T R E E T

• I f a c h e c k b e a r in g a q u e s tio n a b le sig n a tu re
is p r e s e n te d fo r p a y m e n t, d o y o u k n o w in sta n tly to
w h o m th e c h e c k s w e r e o r ig in a lly g iv e n ? Y o u ¿Arif th e y
are s a f e ty n u m b e r e d , b e c a u se y o u h a v e a s ig n e d receipt.
I f a " N o A c c o u n t ” c h e c k c o m e s in , o f th e so r t m er­
c h a n ts u s e fo r th e c o n v e n ie n c e o f c u sto m e r s , can y o u
te ll w h ic h m e r c h a n t o r ig in a lly r e c e iv e d it? Y o u ca n
i f h is n a m e is im p r i n t e d o n p a y e e lin e .
C an a p e r so n cash y o u r c o u n te r c h e c k o u t s id e y o u r
b an k ? N o t i f n o n -n e g o tia b le fo r m is u sed .
D o a m a jo rity o f y o u r p e r s o n a l a c c o u n ts u s e im p r in ted
c h e ck s? T h e y can d o s o u n d e r o u r G r o u p O rd er P lan
a t e x tr e m e ly l o w p r ice s.
T h e s e fo u r sa fe ty m e a su r es in y o u r b a n k w o u ld g iv e
y o u p e r fe c t c o n tr o l o f y o u r c h e c k s.
W r i t e u s f o r c o m p l e te i n f o r m a t i o n

D g Luxe

P R I N T E R S , I NC.

Lithographers and Printers
P la n ts a t

K A N S A S C IT Y

Northwestern Banker

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

June 1940

C H IC A G O
NEW YORK

L E G A L Q U EST IO N S
(C ontinued from page 20)
not y et done. The bus com pany re ­
plied th a t th ey w ere a p u rch aser for
value en titled to hold free from p rio r
equities and th at, as such th ey w ere
w ith in th e ir rig h ts in going ahead
w ith th e deal. W ere such conten­
tions sound?

( M e m b e r F e d e r a l D e p o s it I n s u r a n c e C o rp o ra tio n )

CHECK

The W auneta F alls B ank bu ild in g
has been going up rapidly, th e w alls
are up and th e w indow s are placed.
The brick used on th e outside w all h as
a rain d ro p finish and displays a de­
lightful soft coloring. T he w indow s
are of brick glass w hich give a sub­
dued light and are d u st proof. The fea­
tu re s of th is new building are of th e
latest and b est th a t a rch itectu re can
provide. T he building w ill be read y for
opening som etim e in July.
The fiftieth a n n iv e rsa ry of th e open­
ing of th e W auneta F alls B ank w as on
May 22nd.

CLEVELAND
ST. PAUL

No. The p osition of the bus com ­
pany w ould h ave b een sound had th ey
paid over to Brew regard the $500 prior
to the tim e B ell stopped the m atter.
Since th ey had not done this, h ow ever,
th ey could n ot su ccessfu lly contend
th at th ey w ere a p urchaser for valu e
for the reason that the valu e had not
passed to the seller. A n unperform ed
obligation of a grantee of an ease­
m ent to pay for it at a later date is
not v alu e sufficient to m ake such
grantee a purchaser for valu e en titled
to hold free from prior equities.
A national bank in P enn sy lv an ia
having becom e insolvent, th e Comp­
tro ller of C urrency, in accordance w ith
th e provisions of th e N ational B ank­
ing Act th en in effect, notified G reen,
a stockholder, on D ecem ber 15, 1932,
of his obligation to pay an assessm ent
of $500 on or before Ja n u a ry 23, 1933.
Green did not pay and an action w as
b ro u g h t on th e claim on Ja n u a ry 16,
1939. A ctions of debt m u st be com­
m enced w ith in six y ears “n ex t afte r
th e cause of such actions” u n d er
P en n sylvania law and G reen defended

43
o n th e g ro u n d th a t it w as b a rre d by
reaso n of such law. W as th e defense
good?
No. The six y ear lim itation period
began only w h en the suit m ight have
b een brought. H ere it could not have
b een brought u n til after January 23,
1933, th e dead-line for the p aym en t by
Green of the assessm en t. Since suit
w a s filed w ith in six years after that
date the statu te of lim itation s is not
applicable.
A llen, a banker, becam e ill as a re ­
su lt of d rin k in g a bottle of a v ery
p o p u lar soft d rin k th a t contained a
fo reig n substance. He w as ta k e n to a
h o sp ital and, w hile th ere, notified th e
soft d rin k com pany th a t he inten d ed
to claim dam ages. T he com pany in ­
stalled a device in his room w ith o u t
his know ledge or p erm ission w hich
enabled its agents to listen to and re ­
cord p riv ate conversations betw een
him and his wife, doctors, n urses, and
frien d s. T he b a n k e r learn ed of th e
device and sued th e soft d rin k com ­
p an y for invasion of his rig h t of p ri­
vacy. T his all occurred in Georgia.
Can he recover?
Yes. The action s of the soft drink
com pany violated the banker’s right
of privacy and he can recover dam ages
therefore. The fact that he w as a s­
se rtin g a claim again st the com pany
did not ju stify its action s in the prem ­
ises although th is fact could be sh ow n
in the trial of the case in m itigation of
dam ages.
W here a partnership becom es in ­
solvent and goes into liq uidation and
th e p a rtn e rs th em selves becom e in ­
solv en t and go into liquidation a t th e
sam e tim e, do th e firm creditors have
a p rio r claim to assets used in th e
p a rtn e rs h ip business and th e creditors
of th e individual p a rtn e rs have p ri­
o rity in those p a rtn e rs ’ sep arate es­
tates?
Yes. If a p artnership is in solven t,
and is u nd ergoing liquidation by court
proceedings, the equitable rule of d is­
tribution, w hich is codified by the
U niform P artnership A ct and the
B an krup tcy A ct, p rovides that firm
creditors shall h ave a prior claim to
a ssets used in the partnership b u si­
n ess, and that creditors of the in d i­
vid ual partners sh all h ave priority in
th o se p artners’ separate estates.

About Through
Gladys: “You’ve been ty p ist to n e a r­
ly all th e m en in th e office.”
Phyllis: “Yes, b u t I th in k I ’m on m y
last lap now .”

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Federal Reserve Bank of St. Louis

D

E A N B A U M E I S T E R w as an ­
nounced as presid en t of th e L in­
coln ch ap ter of the A m erican In stitu te
of B anking as the six th an n u al b an ­
qu et w as held recently. He succeeds

of N ebraska alum ni association, spoke
on “Our In te re st in O urselves.” Among
those w ho spoke briefly w ere M ilton
B arlow , p ast national president, Geo.
W. H olm es, B. G. Clark, and C. W .

Charles I. A nderson.

B attey.

F o u r new m em bers w ere elected to
th e board of governors a t the m eeting
w hich w as atten d ed by one hundred.
T hey are: E. A. C hittenden, E. U. Guenzel, Don B u tler and P aul B ogott. Re­
elected w ere S terlin g G lover and H er­
man B rockm eier.

B aum eister, w ho w as form erly vice
president, w ill re p re se n t the ch ap ter
at th e national convention at Boston
in June. A nderson has received an
ap p o intm ent to th e national d e p a rt­
m en tal conference com m ittee of the
A. I. B.
W. A. R obbins presided as to ast­
m aster a t th e banquet, and E lsw orth
F. DuTeau, secretary of the U niversity

A lbert M arshall, w ho w as caught
tw en ty m inutes afte r he h ad robbed
th e M artel State b ank of $242 w as sen­
tenced to five y ears flat in th e state
refo rm ato ry by D istrict Judge Polk.
M arshall pleaded guilty to an inform a­
tion filed by County A ttorney Towle
charging him w ith the crim e of tak in g
m oney from J. Carl Sittler, cashier, at
th e point of a gun.
M arshall adm itted to th e county a t­
to rn ey before he w as arraig n ed th a t he
had stolen a car from the Sidles P on­
tiac Company, th e n forged a check for
$20, on H. C. M arshall, his gran d fath er,
w ith w hich to purchase th e .22 caliber
revolver he used in th e hold up.

'friendly "
CONTINENTAL NATIONAL cooperation
is friendly. It puts the Golden Rule
squarely hack o f every item o f corre­
spondent service.

Q ) n t in e h t a l R

a t io n a l

t
L I N C/ O L N
M em ber F e d e ra l D eposit In su ra n c e

C orpo ratio n

Northwestern Banker

June 19W

44

• N E B R A S K A
The F ed eral Hom e Loan B ank board
announced ap p o in tm en t of Joseph H.
Soliday, Boston; E rn e st T. Trigg, P h il­
adelphia; H erm an B. W ells, Bloom ing­
ton, Ind.; W ill C. Jones, jr., Dallas;
Paul F. Good, Lincoln, Neb., and David
G. Davis, San Francisco, as m em bers
of th e federal savings and loan advis­
ory council for th e y e a r beginning
Ju ly 1st.
C reated by congress, th e council
m eets sem ian n u ally to consult w ith
th e board on g eneral business condi­
tions, and special subjects p ertain in g

M.

N E WS

to th e F ederal Hom e Loan B ank sys­
tem and the F ederal Savings and Loan
In su ran ce C orporation.

•
Moving With the Times

R etail d istrib u to rs, w h eth er inde­
pen d en t or chain, prim arily exist to
serve tw o groups—consum ers and p ro ­
A sale of rem aining assets of the ducers. T he in te re st of the custom er
Lincoln T ru st Com pany in th e hands is to obtain articles w hose quality h e
of L. A. R icketts, tru ste e in b an k ­ can tru st, at th e low est possible price.
ru p tcy, are being sold at th e co u rt­ T he in te re st of th e producer is to ob­
house by R. A. B oehm er and A rch tain th e w idest possible m a rk e t fo r
B u n ting for the tru stee. Mr. B oehm er w h at he m akes or raises, and to re ­
said th e face value of th e liquidation ceive a re tu rn com m ensurate w ith th e
final selling price.
certificates, bonds and o th er securities
The overhead cost of d istrib u tio n —
w as from $60,000 to $70,000.
w hich sim ply m eans the various inbetw een expenses involved in b rin g ­
ing goods from farm and factory to
th e u ltim ate consum er—has tended
steadily dow nw ard in recen t years.
A nd th e cause of th a t progress h as
been, to a v ery large extent, com pe­
tition. Com petition in m an u factu rin g
has been responsible for providing the
public w ith a far b e tte r q uality of
products at a far low er price—refrig ­
erators, autom obiles, etc. By th e sam e
token, com petition in distrib u tio n ,
w ith all types of retailers th in k in g up
w ays and m eans to serve th e public
b etter, has been responsible for the
im m ensely increased operating effi­
D IR EC TO R S
O FF IC E R S
ciency
of retail business.
C.
R.
M
c
K
e
n
n
a
,
P
r
e
s
i
d
e
n
t
,
J
o
h
n
s
o
n
B
i
s
c
u
i
t
Co.
C. L. F r e d r i c k s e n , P r e s i d e n t
B. L. S if f o r d , A t t o r n e y , S i f f o r d & W a d d e n
T he p resen t open com petitive sys­
A. W i l s o n , V i c e P r e s i d e n t a n d C a s h i e r
G. F . S i l k n i t t e r , P r e s i d e n t , S i o u x C i t y
Stock Y ard s C om pa ny
tem , in o th er w ords, has proven itself.
W . G. N e l s o n , A s s i s t a n t C a s h i e r
C. L. F r e d r i c k s e n , P r e s i d e n t
W . C. S c h e n k , A s s i s t a n t C a s h i e r
It favors n eith er chains nor indepen­
M . A. W i l s o n , V i c e P r e s i d e n t a n d C a s h i e r
L. W . R o s s , A s s i s t a n t C a s h i e r
H . C. B o s w e l l , S e c r e t a r y - T r e a s u r e r ,
dents.
The chain store w hich fails to
W e s t e r n C o n tra c tin g C orporation
m ove w ith th e tim es w ill fail, exactly
as w ill th e independent store w hose
ow ner is w asteful, incom petent or
lazy. The custom er w ill go to the store
w hich offers him m ost—in price, qual­
ity, special services, selection of goods,
True friendliness—the kind that brings one of
and so on. T here is no regim entation
our officers right to your desk when you have
of m erchandising in th is country, and
some unexpected problem — is paramount
th a t’s one reason w hy our stan d ard of
living is th e hig h est in th e world.
among officers of this bank.

The Test of Friendliness

This spirit has made Live Stock National Bank
service outstanding. Out-of-town banks that
agree with us on the value of such customer
relationship are invited to make inquiry on our
Sioux City service.

Makes No Difference
A w om an w ent to buy a d rin k in g
trough for h er dog, and th e shop­
keeper asked h er if she w ould like
one th a t bore the inscription, “F o r th e
dog.”
“I don’t m ind at all,” she replied.
“My husband nev er d rin k s w ater, and
the dog can ’t read .”

He Should W orry

N A TIO N A L
A
Sioux City, Iowa
M em ber F e d e ra l Deposit I n s u r a n c e

Northwestern Banker

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

June 1940

C orporation

A desperate-looking m an en tered a
railw ay carriage w h erein a lady and
h e r sm all d au g h ter w ere.
F eeling
alarm ed, the lady tried to get the m an
to leave th e carriage by saying:
“I th in k it is only fair to tell you,
sir, th a t m y little g irl has scarlet
fever.”
“T h a t’s all right, m adam ,” replied
the m an, w ith a te rrify in g glance. “I ’m
com m itting suicide at th e first tunnel,
anyw ay!”

45

SOUTH
DAKOTA
NEWS
G E O R G E M. S T A R R I N G
Secretary-Treasurer
H uron

Continue to Improve
T he condition of South D akota’s
124 sta te b an k s is contin u in g to im ­
prove, E rlin g Haugo, state su p e rin ­
te n d e n t of banks, announced. Loans
d u rin g M arch th is y ear increased n e a r­
ly $4,000,000 resources gained ap p ro x i­
m ately $6,000,000 and b an k su rp lu ses
increased $73,124 over M arch, 1939.
Total deposits in state b an k s —
listed as $38,966,762 for M arch th is
y e a r—show ed an in crease of $5,545,184
over th e corresponding m o n th last
year. U ndivided profits m ade a gain
of $191,383 and no state b an k b o r­
row ed m oney, th e su p e rin te n d e n t said.
W ith no b an k failu res in th e state
in 1939, last y e a r w as th e first y e a r
since 1919 th a t South D akota b an k s
rem ain ed sound w ith o u t govern m en tal
assistance.
H augo h as em ployed tw o m ajo r
m ethods to in su re stab ility in th e
banks he supervises. He has not p e r­
m itte d dividends to be paid w h en a
b an k show s losses an d if losses can
not be m ade good by v o lu n ta ry con­
trib u tio n s of stockholders, he has
urged tra n sfe re n ce of th e stock to
o th e rs w ho are able to m ake th e nec­
essary contributions.
Since ta k in g office 15 m o n th s ago
H augo has successfully follow ed Gov­
e rn o r B ushfield’s re q u e st to p u sh liqui­
d atio n of South D akota’s closed banks.
He has ta k e n th e w ord liquid atio n a t
dictio n ary value.
He keeps a close check on th e b an k s
being liquidated th ro u g h a new sys­
tem he adopted w hich b rin g s him a
m o n th ly reco rd of th e exact cost of
liquidation of each bank.

FH A Approval
The F ed eral H ousing A d m in istra­
tio n has an nounced th e ap p o in tm en t
of th e S o u th ern H ills B ank, E dgem ont
an d a b ra n c h of th e S o u th ern H ills
B ank a t Buffalo Gap, South D akota,
as approved m ortgagees, it w as stated
by N. I. Blegen, m an ag er of th e South
D akota office of th e FH A .
T his action enables th ese in s titu ­
tion s to lend th e ir funds for residen
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Federal Reserve Bank of St. Louis

tial construction, for p u rchasing ex ist­
ing dw ellings and for refinancing in ­
debtedness on existing dw elling u n d er
th e F H A ’s In su red M ortgage System.
O ther FH A approved m ortgagees in
th e sam e im m ediate te rrito ry are:
C uster County Bank, Custer, South
D akota; F irs t N ational B ank of th e
Black Hills, H ot Springs, South Da­
kota.

Open at Noon
T he F a rm e rs S tate Bank, F landreau,
is rem aining open du rin g th e noon
hour, m aking b an king h o urs co n tin ­
uous from 9:00 a. m. to 3:00 p. m.
Decision to rem ain open du rin g th e
noon h o u r w as m ade for th e conven­
ience of patrons, it w as said by offi­
cials a t th e bank.
T his is th e first tim e w ith in th e
m em ory of local b an k em ployees th a t
a b an k in F lan d reau has been open
for business du rin g the noon hour.

Clearings
B ank clearings in Sioux F alls w ere
up $43,596.95 for A pril over th e like
m o n th a y ear ago, it w as revealed at
th e Sioux F alls clearinghouse. The
to tal for th e m onth w as $6,025,823.13
as ag ainst $5,982,226.18 for April, 1939.

SO U TH D A K O T A
C O N V E N T IO N
(C ontinued from page 16)
H. R. Kibfoee, p resid en t Com m ercial

T ru s t & Savings Bank, M itchell; State
b an k division. L. H. E oken, vice p resi­
d en t F a rm e rs and M erchants Bank,
W atertow n; and T ru st division, R. A.
P ankow , a ssistan t cashier F irs t N a­
tional B ank & T ru st Company, Sioux
Falls.
The first session opened w ith an ad ­
d ress by E. S. W oolley, d irector of
b an k ing in stallations for th e George
S. May Company, of New York, w ho
p resen ted a discussion of th e service
charge problem , and w ho told his lis­
te n e rs w hy he considered m any of th e
present-day
system s
of applying
charges as u n fa ir to m any custom ers.

Mr. W oolley says th e nam e “service
ch arg e” is a m isnom er. AATiat the b ank
is doing is m erely asking th e custom er
to please pay for th e services th e in ­
stitu tio n is rendering.
A t th is sam e session, P resid en t
R em pfer m ade a m ost com prehensive
re p o rt on a su rv ey w hich he has been
conducting am ong banks of South
Dakota, w hich b ro u g h t out some v ery
in terestin g facts reg ard in g b ank oper­
atin g costs, w hich of course are closely
related to profits. Mr. R em pfer p re ­
sented num erous ch arts and graphs
to explain his findings.
At a follow ing session, C harles F.
Collison, farm editor of th e M inneap­
olis Tribune, and R. V. H u n k in s, su­
p erin ten d en t of schools a t Lead, South
D akota, b oth gave talk s of un u su al
interest. W hile space does not p erm it
p artic u la r reference to them here, th ey
w ill appear in full in com ing issues of
T

he

N

orthw estern

B

anker

.

Am ong resolutions adopted a t th e
final session of th e convention, w ere
th e following:
“We com m end th e constructive
w ork of our P resident, Wm. C. R em p­
fer, in p resen tin g th e need for ade­
quate service charges and recom m end
th e adoption and uniform use of a
schedule of such charges.
“W e recom m end th e adoption of a
uniform service charge on w h eat and
corn loans.
“We believe th a t th e effect of th e
F a ir L abor S tandards Act of 1938
(W age and H our Act) as applied to
banks in South D akota is to stifle th e
in itiativ e of em ployees and to lessen
th e ir o p portunities for self-im prove­
m en t and advancem ent, and w e re ­
quest th e A d m in istrato r to exem pt our
banks from its provisions. If com­
plete exem ption is not possible, w e re ­
quest th e adoption of regulations p e r­
m ittin g banks to average w orking
h o urs over m o n th ly periods.
“W e req u est th e S ecretary of th e
T reasu ry to consider th e advisability
of rem oving th e p rohibition recen tly
im posed upon th e purchase of U nited
States Savings Bonds by banks, tru sts,
and sim ilar in stitu tio n s.
“We invite all banks in th e state to
join th e Association.
“We th a n k all w ho have co ntributed
so m uch tim e and effort to m ake th is
an enjoyable and successful conven­
tion. AVe have had a good tim e.
“W e congratulate our secretary,
George M. S tarrin g on th a t happy com­
b ination of ability and friendliness,
w hich has w on for him selection as
presid en t of th e C entral States B ank­
ing Conference w hile perform ing in a
faith fu l and ou tstan d in g w ay th e
duties of his office.”
Deadwood, in the Black Hills, w as
nam ed as th e convention city for 1941.

LET'S TALK IT OVER!
I t ’s Convention Time — time when we bankers can and should
get together and discuss m utual problem s.

Time to explore the

past — time to plan for the future.
Banking has progressed m ightily in the last few years. Much
of this progress is due to such group meetings and conventions as
are planned for the im m ediate future.
Over the years our services for correspondent banks have kept
pace with changing conditions. It is to your advantage to have an
T h e N o r th w e s te r n B a n k
B u ild in g
in th e h ea rt
o f th e b u s in e s s d is tr ic t.
T h e i i N o r t h w e s t e r n 99
B o n d D e p a r tm e n t c o n ­
v e n ie n tly
lo c a te d
in
th is b u ild in g b u y s a n d
s e lls U. S . G o v e r n m e n t
S ta te an d M u n ic ip a l
in q u irie s in ­
bonds
v ite d .

---

account at the “ N orthw estern.’’

,

,

USE “ N O R T H W E ST ER N ” SERVICES

,

--

Department of Banks and Bankers
Wm. N. J ohnson
V ic e P r e s id e n t

F. W. Conrad

D. E. Crouley

A s s t. V . P res.

A s s t . C a s h ie r

NORTHWESTERN n a t i o n a l
AND TRUST COMPANY
MINNEAPOLIS


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

F E D E R A L

D E P O S I T

I N S U R A N C E

A s s t . C a s h ie r

bank

M a rq u e tte A v e n u e : 6 th to 7th S tre e ts

M E M B E R

L. P. Gisvold

C O R P O R A T I O N

47
Sam M eyers, cashier of th e F irst
State B ank of Carlos, succeeds A. C.
S chneiderhan as president.
Nels Lee, cashier of the F irst S tate
B ank of K ensington, succeeds Sam
M eyers as vice president.
A. Dan F iala of th e F arm ers N a­
tional B ank in A lexandria w ill tak e
over th e duties of secretary and tre a s­
u re r form erly held by H a rry Silver of
th e A lexandria S tate Bank.

MINNESOTA
NEWS
W IL L IA M DUNCAN, Jr.
S ecretary
M inneapolis

A. B . L A T H R O P
P resident
S t. P a u l

Minnesota Business Prospects Promisins
(C ontinued from page 13)

W aseca— J. E. F a rre ll, cashier, The
F irs t N ational Bank: “W aseca county
an d so u th e rn M innesota, th e g arden
sp o t of th e w orld, are looking forw ard
to a b o u n tifu l harv est. Spring seeding
has been com pleted and th e sm all
g rain looks p rom ising since local rain s
in m oderate p ro p o rtio n have been re ­
ceived. F a rm e rs are b usy p rep arin g
th e g ro u n d for corn. Some have a l­
read y begun planting. The W acesa
can n in g factory w ill be operated th is
season and peas have been sow ed and
sw eet corn g ro u n d is being prepared.
B anking business is good and m e r­
ch an ts re p o rt a v ery satisfacto ry b u si­
ness.”
B en son —C. E. Gesme, vice p resid en t
an d cashier, T he F irs t State Bank:
“W e are pleased to re p o rt th a t so far
w e have had a good supply of m oistu re
an d th e land is in excellent condition.
T he sm all grain, including flax, has all
been seeded and th e farm ers are now
bu sy g ettin g read y to p la n t th e ir corn.
W ith th e prices of cattle th e p ast w in ­
te r and th e p re se n t im pro v em en t of
hog prices and g rain prices th e farm ers
are in a v e ry h ap p y fram e of m ind.
“D uring th e p ast w in te r a new sw im ­
m ing pool w as com pleted in th e city of
B enson and th is w ill be open for use
abo u t th e first of June. B uilding activ ­
ities seem to be on th e boom h ere and
several new houses have been b u ilt
th is y e a r w ith prospects of a good
m an y m ore being b u ilt d u rin g the su m ­
m er m onths. C onstruction is u n d e r
w ay a t th e p re se n t tim e for a new
brick b uilding to house six bow ling
alleys at an appro x im ate cost of $24,000.
M ankato —W. D. W illard, vice p resi­
dent, F irs t N ational B ank of M ankato:
“W hile th e season is som ew hat back­
w ard, conditions have been excellent
fo rm erly of E vansville, gave a ta lk on
for sp rin g seeding and th e sm all g rain
crop is com ing along nicely. W hile

Northwestern Banker


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

June 19JO

th e re has been m uch com plaint by the
farm ers at th e price of hogs, th ere is
every indication th a t on th e whole, the
farm er has had a p re tty good y ear w ith
to tal receipts well above th e average.
B ank debits here show a 10 per cent
increase over last y ear and m erch an ­
dise sales continue above norm al.
“M ankato has tw o v ery prom ising
new industries. T he M ankato Soy
B ean P roducts Company, after a suc­
cessful first year, is increasing its ca­
pacity to be able to handle the products
of 10,000 acres th is year. The C arney
Rockwool Company, w hich utilizes lo­
cal stone in m aking its product, is find­
ing a large and grow ing dem and for
its ou tp u t.”

Remodeling
R em odeling of th e en tire stre e t floor
of th e T orrey B uilding for th e new
q u a rters of th e B ank of Commerce &
Savings, D uluth, at a to tal estim ated
cost of $40,000, is u n d er way, it w as
announced by Jay E. M arkle, p resid en t
of the bank.
T he co n tract has been aw arded to
J. D. H arrold, local contractor, the
plans calling for th e com pletion of th e
m ajor dow ntow n project by A ugust
1st. The building ow ners w ill spend
approxim ately $20,000, w hile the total
cost to th e b an k for new fixtures,
eq uipm ent and in stallation of a new
steel vault, also w ill am ount to $20,000,
according to Mr. M arkle.

New Quarters
An extensive program of m oderniza­
tion and renovation has been com­
pleted a t th e Crookston T ru st Com­
pany, giving th is concern one of th e
m ost m odern bankin g houses in th e
northw est.
F ix tu re s of th e bank have been c u t
dow n to th e new low style and cages
have been rem oved. All w alls of th e
building have been covered w ith a plas­
tic, w hich th ro u g h o u t th e m ain portion
of the building and the d irecto rs’ room ,
resem bles stone. The w alls of the office
of V. L. M acGregor have a finish re ­
sem bling tree bark.

Duluth A . I. B.
Miss Inez M. Cam pbell w as elected
presid en t of th e D uluth chapter, A m er­
ican In stitu te of B anking, at th e a n ­
nual election. She succeeds Jo h n O.
Baker.
O ther officers chosen w ere E lis
H endrickson, first vice president; K en­
n eth W. Dennis, second vice president;
Miss M ary Lou Lyons, secretary, and
K arl H. Thoorsell, treasu rer.
Miss V irginia T rengove w as elected
chairm an of th e w om en’s com m ittee,
and Iv er A nderson, Miss M arie U.
C ranm er and L ester E. Shervy w ere
chosen m em bers of the board of gov­
ern o rs for term s of tw o y ears each.
T he new officers w ere installed fo r­
m ally at a b an q u et May 22nd in H otel
D uluth.

Open House

Officers and directors of th e F irst
N ational B ank of W alker invited th e
people of th a t section to join w ith them
a fter b anking hours on May 11th, in
th e form al inspection of th e fine new
b anking facilities w hich have been pro­
vided for th e convenience and b e tte r
service of th e public.
The p resen t b ank building, ju st re ­
County Meeting
modeled, w as b u ilt in 1901. In 1928
The an n u al m eeting of th e Douglas th e F a rm e rs State B ank w as added
C ounty B ankers A ssociation w as held th ro u g h m erging. A b an d it b a rrie r
w as added in 1934. The recen t im ­
a t A lexandria recently.
K.
O. S attre, vice presid en t of th e provem ent consisted of a th irty foot
M innesota B ankers A ssociation, and enlargem ent to th e bank building, m od­
ern fixtures and safeguards, lobby and
“B anking A ffairs.”
T he officers for th e com ing year w ork space, new safety boxes, a direc­
to r’s room, an insu rance office, and
w ere elected.

48

• M I N N
storag e space in the basem ent. The
new en tran ce is a to k en of th e g reat
im provem ents th a t have been m ade.

Dies in Pipestone
F u n e ra l services w ere held recen tly
for A rth u r C. W alker, 59, p resid en t of
th e P ipestone N ational Bank, w ho died
a fte r an extended illness.

Increases Capital

ESOTA

NEWS

Bank Officers
O rlando Didra, pro m in en t druggist
of W aseca and for m any y ears a direc­
to r of the F irs t N ational Bank, w as
elected to th e vice presidency of th e
F irs t N ational B ank of th is city, to fill
th e vacancy m ade by th e recen t death
of Jo h n L. H anson. Selm er H anson of
Otisco tow nship, a farm er and director
of AAA activities in W aseca county,
w as elected a d irector of th e bank.

•
dent of th e in stitu tio n . He w as a prom ­
in en t leader in all civic en terp rises for
40 years, serving as p resid en t of th e
Com m ercial Club, a m em ber of the
light, pow er and w a te r com m ission,
p resid en t of th e M arshall county fair
organization, and a leader in num erous
a g ricu ltu ral activities. He had large
land holdings in th a t vicinity.

C O N S U M E R F IN A N C IN G
(C ontinued from page 15)

In d icatin g continued g row th, the
D undas State B ank is changing its a r ti­
cles of inco rp o ratio n to allow for an
increase in capital stock from $10,000
to $15,000. A ssets of th e b an k now to ­
ta l m ore th a n $200,000, th e larg est in
its history.
F ra n k W. Shandorf of N orthfleld is
presid en t of th e bank.

The village council of Campbell p u r­
chased the F irst N ational B ank B uild­
ing w hen it w as sold for taxes. The
plan is to re p a ir it, since it has been
em pty for several y ears and p u t it into
condition w ith the hope of g etting a
b an k sta rte d in Campbell.

W ere in Hospital

Dies in Warren

G. A. W hitm an, E veleth, and D. W.
Stebbins, V irginia, b oth officers of th e
A m erican E xchange N ational Bank,
w ere recen tly confined to th e m unici­
pal hospital in ad jacen t room s. Mr.
W h itm an w as ill w ith pneum onia and
Mr. Stebbins u n d e rw e n t a m ajo r oper­
ation.

O. H. T aralseth, 62, pro m in en t b u si­
ness m an and civic leader of W arren,
died recently a t his hom e w here he
had been confined since Jan u ary . He
h ad been ill for tw o and one-half years.
Coming to W arren he en tered b u si­
ness w ith his fa th e r in th e State B ank
of W arren and for 35 y ears w as p resi­

Buys Bank Building

ing, w h erein th e car ow ner pledges th e
only th in g of collateral value th a t he
has in order to help him over a rough
spot. O ne-third of th e autom obile ow n­
ers of th e U nited States nev er ow ned a
new car and to hu n d red s of thousands
it is th e ir m ost cherished possession.
The social aspects of installm en t
loaning are m ost im pressive, far m ore
im p o rtan t th a n th e q u an titativ e aspect,
for rem em ber th a t consum ers dem and
and w ill secure credit; th ey w ill take
good agencies if th ey can get them , b u t
bad agencies if th e y have to; and I
subm it th a t it is up to th e b an k ers to
fu rn ish th e good agencies. It p u ts th e
ban k ers in direct touch w ith th e com ­
m on people, th e people w ho have th e
votes.

YOUR ST. PAUL
T R A N S A C T IO N S
Banks in the larger and smaller cities
are finding our complete transit and
collection facilities satisfactory and
efficient in every way.
We would appreciate the opportunity of serving you.

Empire National Bank and Trust Company
St. Paul, Minnesota
Alex. Highland, President
M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n
A f f ilia te d iv ith N o r th w e s t B a n c o r p o r a tio n

Northwestern Banker


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

June 19W

Do Your Customers Know
what bank

isyour Minneapolis Correspondent?

C h an ces are, m ost o f th e m n e i t h e r k n o w
n o r care. Yet y o u r choice o f a M in n e a p o lis c o r r e s p o n d e n t is
im p o r ta n t to th e m b ecause it has a good deal to do w ith th e
service you can o ffe r th e m . . . .

H e re at th e F irs t N a tio n al,

for in s ta n c e , we re set u p to p e rfo rm services r e q u ir in g b u s i­
ness a n d b a n k in g c o n n e c tio n s in p rin c ip a l cities at h o m e and
a b ro a d . By e n lis tin g o u r h e lp in m a k in g last c o lle ctio n s, se­
c u rin g c re d it o r b u sin ess in f o r m a tio n , h a n d lin g tra n s a c tio n s
in v o lv in g foreign ex ch an g e, m any c o r r e s p o n d e n t b a n k s have
m ad e new c u s to m e rs — o r b e tte r fr ie n d s ol old c u sto m e rs . . . .
Can we help y o u help y o u r cu sto m ers?

F irst

Member Federal Depost! Insurance C ortoratio

M . O . G ran gaard
Viet Presid ent

•

C. B. B r o m b a c h

•

W.

A ssista nt Vice Presid ent

A.


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

f f i l i a

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d

w i t h

f

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b

V o lk m a n n

•

J. J. M alo n ey

A ssistant C a sh ier

B a n k A d v i s o r y D i v i s i o n , K. T . M a rtin

A

Minneapolis

N a t io n a l

a

n

k

•

s

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A ssistant Ca sh ier

J. M . D o w n es

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50

• M IN N E S O T A
Now th e n w hen you can com bine
g re a t public service w ith su b stan tial
profit, you have a b an k in g function
w o rth y of serious, dignified treatm en t.
In sta llm e n t financing has been a de­
velopm ent over th e last ten or tw elve
y ears so far as b anks are concerned,
and it has tak en tim e to crystallize
m ethods of operation and classify th e
same. Out of th e m any ram ifications
th ere have grow n tw o m ethods w hich
have now come to be know n “via th e
d ealer” and “yia th e public.”
U nder th e dealer plan, a finance com-

NEWS

p any operation is really paralleled.
G enerally it costs the custom er m ore
money. It is highly com petitive. It
does not build custom er relations. On
th e o ther hand, it is generally conceded
to be th e quick w ay to volume. It is
highly technical and replete w ith great
h azards and, therefore, m ay be also the
quick w ay to losses.
“Via th e public” it seem s to me is a
tru e, over-the-counter, banking func­
tion. It has th e advantages of direct
contact w ith th e borrow er. It helps to
build public relations. It has some col-

“Consistent to Good Banking”

M r . C . R . D u r o e , C a s h ie r o f th e
S ta te B a n k o f J e ffe rs, M in n e s o ta ,
i s w e ll- k n o w n th r o u g h o u t th e
N o r th w e st f o r h is c a p a b le , e fficien t
m e th o d s o f b a n k in g o p e r a tio n s .
A s s o c ia te d w ith th e J e ffe rs B a n k
e v e r s in c e 1 8 9 9 , M r . D u ro e k n o w s
th e in s a n d o u ts o f c o u n tr y b a n k s.

"Our Jeffers Bank opened an account with the Midland National
Bank and Trust Company way back in the days when they were
known as the Scandinavian American National Bank, probably
twenty-five years ago. Since opening the account, the Midland has
been our principal correspondent bank. At all times they have
granted us every accommodation consistent to good banking. I do
not know how their service to us could be improved.”

M id la n d

National Bank & Trust Company
o f M in n e a p o lis
S E C O N D A V EN U E SO U T H AT F O U R T H S T R E E T
M EM BER

FEDERAL

Northwestern Banker

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

D E P O S IT

June 19f0

IN S U R A N C E

C O R P O R A T IO N

•
lateral advantages in the shape of di­
recting to the b ank o ther business such
as savings accounts, safety deposit
boxes, and checking accounts, and
gives m uch g re a te r o p p o rtu n ity for
adyice and counsel.
M any an in d iv id u al’s only or first
o p p o rtu n ity to come into contact w ith
a bank w ill come th ro u g h th e sm all
loan departm ent. The o p p o rtu n ity to
acquire th e secu rity of established
credit at “his b an k ,” to acquire v alu ­
able equipm ent or com forts or con­
veniences w ith th e help of “his b an k ,”
is a pow erful and m oving relationship.
To w alk proudly into “his b a n k ” and
negotiate a loan at a reasonable rate in
a business-like w ay is a privilege w hich
th e em barrassed victim of the loan
office w ill n ever forget. C ertainly such
objectives are w o rth y of dignified q u ar­
ters, considerate tre a tm e n t and a tte n ­
tion to detail. No longer is th e sm all
loan departm ent, how ever, th e h a u n t
of only th e loan-shark victim , th e n e­
cessitous borrow er. Of 7,500 active
loans on our books in M inneapolis,
m ore th a n half of our people are b o r­
row ing to acquire property. Our five
big display w indow s appeal to people
of m eans w ho w an t to enhance th e ir
personal p ro p erty inventory. W e ad­
vertise co n stan tly th a t we w a n t to do
business w ith people of good paying
record. Our pro m in en t corner loca­
tion has no p riv ate consultation room s.
W e advertise for loans for $86,000 Die­
sel engines to $86.00 w ashing m a­
chines. W e try and believe we have
succeeded in dignifying th e business
in our bank to th e point w here our
custom ers take pride in doing business
w ith the departm ent. T hey are ac­
q u iring new and useful property, not
paying for dead horses.
A cquisition or pro cu rem en t is a big
problem in com petitive situations.
“Via D ealer” plan requires salesm en,
street rep resen tatio n , elaborate sys­
tem s, records, kick-backs, reserves, fol­
low-up solicitation. “Via P ublic” re ­
quires advertising, literatu re, excellent
office organization and p rom pt overthe-counter service.
P ro m ptness is
generally m ore im p o rtan t th a n rate.
The cu sto m er’s first question is: “How
m uch w ill it cost m e per m o n th ?” F o r
ad v ertising th e larg er operators have
used every m edium —new spaper, radio
and outdoor. All have th e ir propo­
nents, w ith th e new spapers gettin g th e
lion’s share of th e ap p ro p riatio n s so
far as m y studies go. E arly m orning
radio tim e proved a real success in a t
least one large city. Direct-by-mail,
except in a few rep o rted cases, seem ed
to be less effective th a n o th er media.
Now th en let us consider w h a t I
th in k is obvious,—th a t in stallm en t

51

A bank
FO R B A N K E R S

since
F r o m th e sm a lle st to th e la r g e st,
h u n d r e d s o f N in th D istr ic t h a n k s
c h o o s e th e ''F irst in S ain t P a u l”
as

tlie ir T w in

d e n t.

H e re

C ities c o r r e sp o n ­

th ey

find

a

se r v ic e

w h ich has m et th e r e q u ir e m e n ts
o f h a n k s a n d b a n k e r s fo r o v e r
e ig h ty -se v e n y ea rs.
.

THE FIRST NATIONAL BANK
OF SAINT PAUL

•

AFFILIATED W ITH FIR ST BANK STOCK CORPORATION
Member Federal Deposit Insurance Corporation


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

52

•M IN N ESOTA
loaning is a specialized field of b a n k ­
ing, fiercely com petitive, hig h ly te c h ­
nical, and sw eeping in its scope, w ith
g re a t possibilities for good or evil.
T his being th e case, w h a t m u st a b ank
do to succeed in th is field?
1. F irst, trained personn el. (This
business cannot be learned overnight.)
2. Sound principles. (W hich have
becom e second n atu re.)
3. F lex ib le rules. (The few er th e
better.)
4. No prejudices. (T his is a sort
of D.P.A. project.)

5. A ccessible location.

m uch.)
6. A d vertisin g funds.
invaluable here.)

N E W S *
(This m eans
(Good counsel

7. A stou t heart.

F o r after all, th ere is no m agic in the
w ords “in stallm en t p ay m en ts”. T here
is a m agic in reg u lar paym ents a t fre­
q u en t intervals, b u t th ere is also grief
and trouble and ill-will in delinquen­
cies, forced collections, foreclosures
and repossessions. The b an k er w ho is
ru n n in g an in stallm en t loan d ep art­
m ent is still loaning his depositors’

money. He still has to get it back. H e
cannot avoid the responsibility of th is
tru steeship. V
T his discussion w as prep ared before
W orld W ar II becam e so trem en d o u s
in its im plications. E v ery b a n k e r will
w an t to exam ine his responsibilities
and w eigh his plans in th e light of re ­
cent developm ents. B ear in m ind,
how ever, th a t th e kin d of risk s w e
have been discussing are g reatly di­
versified, generally sm all as to individ­
uals and gave a good account of th e ir
u ltim ate soundness du rin g th e g reat
depression.

Owns Farm at Northfield

Northwest Bankers
in Convention:
/
F o r over seventy-five years th e St. P a u l F ire
an d M arin e In su ran ce C o m p any has p ro v id ed
th e N o rth w est w ith d e p e n d a b le insu ran ce and
p ro m p t claim service
T oday we are e q u ip p e d to h an d le
y o u r c u rre n t p ro b le m s— and offer

Insurance Counsel to Banks
th ro u g h th e

“St. Paul” Group
w ritin g
Blanket Bonds
One policy covering Fidelity, Burglary, Robbery,
Messenger and other important coverages.

Forgery
Safe D eposit
Registered Mail
All Other Lines

St. Paul Fire & Marine Insurance Co.
Mercury Insurance Co.
St. Paul-Mercury Indemnity Co.
Saint Paul, Minn.
Northwestern Banker

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

June 19J0

C. S. A shm un, M inneapolis in vest­
m ent dealer, has a hobby w hich pays
dividends. A few y ears ago he p u r­
chased a 240-acre farm 35 m iles south
of M inneapolis n ear N orthfield. H e
ru n s down th ere over w eek ends and
gets m uch pleasure from donning over­
alls and assisting his tw o h ired m en.
Thirty-five H olstein cattle are kep t at
th e p resen t tim e and he is rap id ly
building up a p u re b red herd.

Dividend
The board of directors of M anufac­
tu re rs T ru st Com pany declared th e
reg u lar q u a rte rly dividend of 50 cents
p er share on th e com m on stock, pay­
able on A pril 1, 1940, to stockholders
of record on M arch 15, 1940.
The board also declared th e reg u lar
q u arterly dividend of 50 cents per
sh are on th e p referred stock, payable
A pril 15, 1940, to stockholders of rec­
ord on M arch 30, 1940.

Merchants of Security
Paradoxically th e m ost desired ob­
jective of the average m an, secu rity for
him self and fam ily, is sh u n n ed far too
often w hen it is th ru s t directly before
him. Life in su ran ce rep resen tativ es
are m erely m erch an ts of security, and
sixty m illion A m ericans own th e prod­
ucts of these m erchants to th e tu n e of
over a h u n d red billion dollars.
Security for th e th rifty as a re su lt of
th e evolvem ent of insurance, has be­
come a m a tte r of m erchandising ra th e r
th a n idealistic hoping. Security, like
eggs and bacon, can be bought a t a
price—and th e price is am azingly re a ­
sonable.
It m ight be w ell to rem em ber th a t
security and bacon and eggs are synon­
ym ous term s, and if an individual
w ishes p lentiful supplies it is largely
up to him to secure th em by his own
in d u stry and savings.

53

T w in

C ity N e w s

N

EW officers of th e St. P aul chapter,
A m erican In stitu te of B anking,
By James M. Sutherland
w ere in stalled a t th e c h a p te r’s th irty Special Correspon dent
eig h th an n u al b an q u et at St. P au l A th ­
letic Club.
T hey are P h illip K. Day, E m p ire N a­
tio n al B ank & T ru st Com pany, p re si­
dent; A lb ert T rossen, F irs t N ational ident; K erm it N ordquist, F irs t State
Bank, first vice p resident; F ran ces B ank, secretary, and H enry Ayd,
A m erican N ational Bank, treasu rer.
B u sch, F irs t T ru s t Company, second
N ew m em bers of the board of gover­
vice p resident; V eronica H ealy, F irs t
B anC redit C orporation, th ird vice pres- nors are A lden P eterson , F a rm Credit

A dm inistration, and George M eyers,
Cherokee S tate Bank.
W in n er of second prize in a national
contest am ong b ank em ployes spon­
sored by C hristm as Club, Inc., A rthur
C. Johnson, a ssistan t m anager of th e
personal loan d ep artm en t of F irs t N a­
tional B ank & T ru st Company, Min­
neapolis, received a check for $500.
He w on w ith an essay on “W ealth
Comes F rom U n d erstanding.”

THREE KINDS OF MONEY EVERY GOOD PROVIDER NEEDS
stopped to

H realize th a t— to be a good
ave

you

ever

p ro v id er— you really need th ree
kinds of m oney?

W h e n e m erg en cies strik e ,
you need money th at can spring
into action im m ediately—dollars instantly avail­
able in a bank account.
To be prepared against untim ely death, you
need m oney th at will take your place in providing
for your family. Such m oney can be provided
through the m edium of life insurance.
If you are like m o st people, you have already
seen the need for these two kinds of money. One
out of every 3 families in this country has a savings
account. One out of every 2 has life insurance.
But in the world we live in today, more than
ever before, people are conscious of the need for a
th ir d kind of money . . . the need for a reserve of
dollars to be accum ulated, step by step, to remain

during a m an’s years of earning power.
This kind of money makes you a good provider
for yourself a n d your family when your working
days are done.
u n to u c h e d

T h e F ir s t S te p
The first and most im portant step toward the solu­
tion of a m an’s money problems is to find out
ivhere y o u r m o n e y g o es. Keeping a record of what
you spend is essential if you want to make the
most of your income.
To help you take this first, im portant step,
Investors Syndicate offers, w ithout obligation,
"Living” Expenses . . . a simple, easy way to find
out where your money goes. This is n o t a budget
hook. For your free copy, write Investors Syndi­
cate, Dept. 660, Minneapolis, Minnesota.
This message is typical in character o f a series
o f advertisem ents , sponsored by Investm ent S y n ­
dicate, now appearing in national m agazines.

H o m e O ffice, M in n e a p o lis , M in n . A ffiliates: In v e s to r s S y n d ic a te T itle
& G u a ra n ty C o ., N e w Y o r k ; In v e s to r s S y n d ic a te , L im ite d , C a n a d a .

IN VESTO RS SYNDICATE
Living Protection
E s ta b lis h e d

1894

Northwestern Banker

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

June 1940

54
A nnual stag p a rty of th e E xchequer
Club of M inneapolis w as held a t Gold­
en V alley Golf Club May 20th. L. C.
B erglund, a ssistan t m anager of the
Lake S treet office of N o rth w estern N a­
tional B ank & T ru st Company, w as
chairm an.

A Logical
Correspondent
B a n k s lo c a te d in th e territo ry
tr ib u ta r y to th e S o u th S t. P a u l m a r ­
k e t c a n in c r e a s e t h e se r v ic e to th e ir
c o m m u n it ie s t h r o u g h a c o n n e c t io n
w ith u s .
O u r c o m p le t e b a n k in g f a c ilit ie s
a ss u r e p r o m p t a n d e f fic ie n t h a n ­
d lin g o f S o u th S t. P a u l t r a n s a c tio n s .

STOCK YARDS
NATIONAL BANK
SOUTH

ST. PAU L, M IN N E S O T A

M e m b e r F e d e ra l D e p o s it In s u r a n c e
C o r p o r a tio n

C A RSO N

F.

J A M IE S O N

M anagem ent m u st recognize the
g re a t social progress th a t has been
m ade d u ring th e p ast decade in indus­
try , D onald D. D avis, presid en t of Gen­
eral Mills, Inc., told m em bers of th e
M inneapolis chapter, A m erican In sti­
tu te of Banking, at th e ir forty-second
an n u al dinner.
Dr. Davis listed am ong these ad ­
vances th a t are now recognized rig h ts
such th in g s as collective bargaining,
old age pensions, hospitalization, sick
benefits, disability com pensation, te rm ­
in atio n com pensation, and “p erhaps
m ost im p o rtan t of all,” guaran teed in­
come, security of em ploym ent.
F. L. D urand, F irs t Service Com­
pany, heads the slate of new officers in ­
ducted a t th e banquet. A rthur W.
Johnson, re tirin g president, p resen ted
th e c h a p te r’s scholarship aw ards to
F ran ces S. Baker, F irs t N ational B ank
& T ru st Company, and Jas. R. Brow n,
M idland N ational B ank & T ru st Com­
pany.

E IN A R A . B E R G

W IL L IA M G. K A H L E R T

JAMIESON & COMPANY
GOVERNMENT, MUNICIPAL, CORPORATION BONDS
Members of the New York Stock Exchange
and other principal exchanges
s t . Pa u l
131 E n d i c o t t B u i l d i n g
C E d a r 0721

C H A R L E S C. R I E G E R
M in n e a p o l is
M anager
1225 F i r s t N a t ’l - S o o L i n e B ld g .
B o n d D e p a r tm e n t
A T l a n t i c 8235

W. L. B oss, a ssistan t cashier, F irst
N ational Bank, St. Paul, has been
nam ed ch airm an of th e to u rist com­
m ittee of th e St. P aul A ssociation of
Commerce.

A nnual outing of th e Tw in City Bond
Club w ill be held Ju n e 13th a t th e
“old stan d ,” th e W hite B ear Y acht
Club. E dw ard B. L yn ch is chairm an
of th e picnic com m ittee, w hile m em ­
bers are P aul Burkland, S idney H en ­
derson, W illiam L ew is, D ale M errick,

and H arold W ylie. F red Goth is in
charge of th e prize draw ing.
N early 300 delegates from 17 sta te s
atten d ed th e six th an n u al m id-conti­
n en t conference of th e N ational Asso­
ciation of B ank A uditors an d Comp­
tro llers at N icollet Hotel, M inneapolis.
Topics discussed a t th e two-day ses­
sion included b an king problem s of cu r­
re n t im portance, w ith special em phasis
on sim plification, stan d ard izatio n and
im provem ent of b anking m ethods.
T he fifty m em bers of the Tw in City
conference of th e association w ere
sponsors. F . H. D elaney, vice presi­
dent of F irs t N ational Bank, St. Paul,
w elcom ed th e delegates, w hile J. Cam­
eron Thom son, presid en t of N orthw est
B ancorporation, w as principal sp eaker
at th e an n u al banquet. Thom as H.
H odgson, a ssistan t counsel and tru s t
exam iner of th e M inneapolis F ederal
R eserve Bank, spoke a t th e closing
session.
Cleveland w as selected for th e 1941
conference.
Tw in City Bond T rad ers Club w ill
hold its an n u al golf p a rty A ugust 6th
a t M inneapolis Golf Club. Joyce Finru d of F irs t N ational B ank & T ru st
Company, M inneapolis, is chairm an of
arran g em en ts. Com m ittee m em bers
include A rthur Rand and W illiam
H ow ard.

D irectors of N o rth w est B ancorpora­
tion voted a 10 cent p er share dividend

Duluth’s Oldest and Largest Bank...
. . . offers to B anks and B ankers the
experienced, p ro m p t and efficient service
of a m o d ern b a n k in g in stitu tio n .

We invite your account.

FIRST

and

M E M B E R

F E D E R A L

Northwestern Banker

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

D U L U T H , M IN N E S O T A
D E P O S I T

June Í9't0

R epeating its an n u al custom , Mar­
N ational B ank w as recently
host to M inneapolis co n tractors a t a
d in n er at w hich m u tu al problem s w ere
aired. A bout 150 attended.
quette

AMERICAN NATIONAL BANK
of

on th e b ank holding com pany’s stock,
payable May 25th to stockholders of
record May 10th. T he p aym ent in ­
volves $155,983, according to J. C.
Thom son, president. N inety per cent
of it w ill go to stockholders living in
states served by Banco affiliates.

I N S U R A N C E

C O R P O R A T I O N

H. A. W arner, p resid en t of th e F irs t
State Bank, W hite B ear Lake, w as
elected p resid en t of th e M innesota
Safe D eposit A ssociation a t th e an n u al
m eeting in M inneapolis.

55

•MINN ESOTA

NEWS*

O ther officers nam ed w ere .T. M.
K ane, a ssista n t cashier, Stock Y ards

son, D. C., Jr., and E. D. R om ans, w ell
know n in n o rth w e st financial circles.

N ational B ank, South St. Paul, vice
presid en t, and P h y llis G ustetter, Com­
m ercial S tate Bank, St. Paul, secretarytre a su re r.

A nnual d in n er p a rty of th e M inne­
sota Safe D eposit A ssociation w as held
May 22nd at Lowell Inn, Stillw ater.
M iss D orothy M cIntyre of th e W est
B roadw ay office of F irs t N ational B ank
& T ru st Company, M inneapolis, asso­
ciation secretary, w as in charge of a r­
rangem ents, assisted by A. S. N ew ­
com b and R. O. T hayer, M inneapolis,
and George E. Gere and C. A. M oberg,
Jr., St. Paul.

N ew stock and g rain brokerage
house in M inneapolis is P aul M. H ow ­
a rd & Com pany. P a rtn e rs a re Don
H ow ard, his son, P aul M. H ow ard,
m an ag in g p a rtn e r, and P. D on Carson.
Mrs. Jean ette M asek is acco u n tan t and
secretary.
N om inating com m ittee of th e M inne­
sota B an k ers A ssociation, re p re se n tin g
all clearinghouse d istricts in th e state,
selected K. O. Satire, vice p resid en t
an d cash ier of Blue E a rth S tate B ank,
Blue E a rth , as nom inee for president.
M eeting in M inneapolis, th e com m it­
tee n o m inated O. G. Jones, p resid en t of
Goodhue C ounty N ational B ank, Red
W ing, to succeed Mr. S attre as vice
president, and E lm er B. H anson, p re si­
d e n t of F irs t S tate B ank, F ertile, for
an o th e r te rm as tre a su re r.
T he association’s a n n u a l convention
w ill be held in M inneapolis Ju n e 5th
to 7th.
The in v estm en t firm of Shepard, Ro­
m ans, Inc., h as opened in St. Paul.
A ssociated in th e b u siness are D. C.
Shepard, fo rm er p resid en t of E m pire
N ational B ank & T ru s t Company; his

Fooling Them
“I say, Bill,” asked an acquaintance,
“w hy did the forem an sack you yes­
terd ay ?”
“W ell,” w as th e reply, “a forem an
is one w ho stands aro u n d and w atches
his gang w ork.”
“I know , b u t w h a t’s th a t got to do
w ith it? ”
“Well, he got jealous of me! People
th o u g h t I w as th e forem an.”

Two Hundred Dollars a Month
When You Retire!
W e d o n ’t m ean th e k in d of re tire m e n t th a t L ife I n s u r ­
ance C o m panies p ro v id e for age 65.
S u ppose th a t sick n ess or a c c id e n t sh o u ld fo rce you to
re tire to m o rro w or n e x t m o n th or n e x t y ear.

E ith e r

sick n ess or accid e n ts o ften com pel te m p o ra ry or p e rm a ­
n e n t re tire m e n t an d th a t is w h e re o u r p lan of benefits
com es in.

B a n k e rs are n o t im m une.

B ecau se th e y are

good risk s, h o w ev er, th e y are e n title d to e x tre m e ly low co st p ro te c tio n an d b a n k e rs th ro u g h o u t th e U n ite d S ta te s
an d C an ad a have th o ro u g h ly te ste d o u r A sso c ia tio n over
th e p a s t th irty -fiv e y ears.

Mu n i c i p a 1
Bo n d s

T h o u sa n d s of b a n k e rs can

te stify to th e v alu e of o u r p ro te c tio n .
T h e re is no m edical e x a m in a tio n an d no red tap e.

Just

w rite us for p a rtic u la rs an d a p p lic a tio n an d lite ra tu re w ill
be p ro m p tly m ailed to you.
A ccid en t, S ickness, H o sp ita l an d S u rg ical R e im b u rse ­
m e n t P o licies paid up in full to th e m iddle of n e x t D e ­
cem b er for th e sm all m e m b e rsh ip fee.

D o n ’t D e la y !

W r ite us n o w !

1 . S. A s liin u ii
C om pany

M IN N ESO TA CO M M ER C IA L M EN’S
A S S O C IA T IO N

I n v e s t m e n t S e c u r itie s

1212 F irst N a tion al-S oo L in e B u ild in g
M IN N E A P O L IS , M IN N E S O T A
B e ll S ystem T e le ty p e M PLS111
B rid g ep o rt 1175


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

P A U L C L E M E N T , Secretary

2550 Pillsbury A ve.

*

Minneapolis, Minnesota

Northwestern Banker

June 19^0

56

YOUR GRACIOUS HOST
FROM COAST TO COAST

The Gotham

The Drake
The Blackstone

More Millions for Subsidy
The proposed St. L aw rence W ater­
w ay is one of th e principal issues now
being considered by Congress. And,
should the bill pass in its proposed
form , the tax payers of th is co u ntry
will be called upon to bear a new b u r­
den of staggering proportions.
The estim ated cost of th e project is
$258,000,000. But, if p ast precedent is
any arbiter, it is w ell to tak e th a t es­
tim ate w ith m any g rains of salt. F or
th e alm ost univ ersal experience, both
here and abroad, has been th a t w a te r­
w ay im provem ents cost tw o to th ree
tim es as m uch as th e optim istic esti­
m ates of th e ir proponents. The esti­
m ated cost of th e Suez Canal, for ex­
am ple, w as $30,000,000—it actually cost
$80,000,000. E stim ated cost of th e P a n ­
am a Canal w as $160,000,000—actual
cost w as $375,000,000. E stim ated cost
of th e Chicago D rainage Canal w as
$16,000,000—actual cost w as $53,000,000. E stim ated cost of th e New York
Barge Canal w as $62,000,000—actual
cost w as $188,000,000'. A nd th e various
au th o rities are of the opinion th a t the
St. L aw rence W aterw ay w ould actual­
ly cost around a billion.
Canada, of course, is to pay p a rt of
th e cost. B ut h er paym ents are to be
deferred u n til 1949, and we are to ad­
vance all the money. And, in these
days, God only know s w h at w ill h a p ­
pen in th e nex t nine years.
Lastly, if th ere is any real need for
th e w aterw ay, it h a sn ’t been m ade
clear. The general experience w ith
all w aterw ays is th a t th ey benefit a
few favored com panies, m ostly large—
at the expense of all th e re st of the

co u ntry w hich m ust pay trem endous
sum s for upkeep as well as for con­
struction. A ccording to S e n a t o r
W heeler, chairm an of th e Senate In ­
te rsta te Commerce Com m ittee, w hen
concerns ship products by w ater “th ey
receive th e benefit, b u t th e consum ing
public does n ot get one 5-cent piece
benefit out of it.” T here is no reason
for believing th e incredibly costly St.
L aw rence W aterw ay w ould be any ex­
ception.

Down to Earth
C hronic sp en d th rifts alw ays ru n
into trouble. T herefore, it is not su r­
prisin g th a t th e F ederal governm ent
is beginning to notice gath erin g clouds
on th e fiscal horizon. G overnm ents,
like individuals, m ust p ay in terest on
borrow ed money. And th e m ore
m oney borrow ed, th e g reater th e ac­
cum ulation of in te re st payable. W hen
a debtor ceases to pay in terest, his
credit standing prom ptly collapses.
The annual in te re st bill on th e F ed ­
eral debt is c u rre n tly about $1,100,000,000. T his is a sizeable sum even
in these days of billion-dollar appro­
priations. And the in te re st problem
m ust grow steadily m ore serious as
our “chronic sp e n d th rift” policy con­
tinues.
M eanw hile it continues to
serve as a dow n-to-earth rem in d er th a t
governm ent is like the rest of us. Its
existence as a going concern depends
upon its credit standing. It m ust m eet
its ju st obligations, u ltim ately pay its
debts—or collapse, dragging w ith it
m illions of h ard w orking citizens into
th e sham bles of b a n k ru p tcy and de­
spair.

TheTouin fiouse

N ew h o u se Paper Co.
“B e t t e r P r in tin g P a lte r s “

WHOLESALE PAPER
i

BelleuieuiDiltmore

A.S. K I R K E B Y ,

M a n a g in g D ire c to r

KIRKEBy
HOTELS
Northwestern Banker


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

June 19J0

Minneapolis
Moline

St. Paul
Des Moines
Dubuque

57

NORTH
DAKOTA
NEWS
F R A N K R, SCOTT
President
Fargo

Essay Contest
The F irs t N ational B ank of W illiston
recen tly concluded an essay contest
am ong high school and eig h th grade
pupils w hich created an u n u su al
am o u n t of in te re st and b ro u g h t some
excellent publicity to th e bank. In the
high school each essay w as lim ited to
500 w ords, and in th e eig h th grade th e
lim it w as 400 w ords. More th a n 200
essays w ere su b m itted for judging in
th e contest. T e rrito ry included w as
th e g re a te r p a rt of M cKenzie county,
an d W illiam s county, and, of course,
ap p ro p ria te prizes w ere offered. J.
A rth u r C unningham , presid en t, an d
R. G. R asm usson, cashier, w ere in
ch arg e of th e contest for th e bank.

No Spring Groups
In view of th e m id-w inter m eeting
and th e fact th a t th e re are no pressing
problem s for im m ediate discussion, th e
sp rin g group m eetings of th e N orth
D akota A ssociation w ere not held th is
year.
M em bers of th e no m in atin g com m it­
tee for th e n o m ination of officers of
th e S tate A ssociation from th e respec­
tive groups w ill be chosen by th e m em ­
bers of each group w ho are in a tte n d ­
ance at th e state convention, and th e
m em bers of th e executive council
w hose te rm s expire th is year, will hold
over u n til th e fall m eeting, w hen one
m em ber from each group will be
chosen.

Brief News
T he F irs t N ational B ank of H e t­
tin g e r has assum ed th e deposit liability
of th e B ank of R eeder, and th e last
m entioned b ank w en t into liquidation.
T he A shley S tate B ank and th e F irs t
S tate B ank, W ishek, w ere closed by
th e ir boards of directors.
The F a rm e rs State B ank of Zeeland
changed its co rporate nam e and head ­
q u a rte rs to M cIntosh C ounty Bank,
A shley, N o rth Dakota, and opened for
business a t Ashley.

Dies ¡n Fargo
E rw in A. N issen, Gackle, 42, for 15

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

C. C. W A T T A M
S ecretary
Fargo

y ears cashier of the F irs t State Bank,
died in a F argo hospital recently. His
d eath w as due to a h e a rt ailm ent and
o th er com plications.
S hortly before he becam e ill Mr. N is­
sen had tak en a position w ith th e F ed ­
eral L and B ank of St. Paul.
Besides his wife, N issen leaves a
daughter, A rlys, and tw o sisters, Mrs.
R ichard Purcell, St. Paul, and Miss
Gladys N issen, Anoka, M innesota.

Charter Approved
The state banking board recently
approved th e opening of a paying and
receiving statio n at G renora by th e

A m erican State B ank of W illiston, sub­
ject to final approval of th e F ederal
D eposit In su ran ce C orporation.
State E x am in er Jo h n A. G raham
said th e hank applied for au th o rization
to open the paying and receiving sta­
tion on petition of a group of G renora
businessm en.
He said the board approved an appli­
cation for a c h a rte r for a state b ank at
Mott, also subject to final approval of
th e FDIC. The application w as for th e
conversion of th e F irs t N ational B ank
of M ott to the Comm ercial State B ank
of Mott.

Wilton Death
F u n eral services w ere conducted in
AATlton recently for Theodor H erm an
Steffen, b an k er for th e p ast 22 years,
w ho died of nephritis.
In July, 1918, th e Steffen fam ily
came to AVilton w here he associated
w ith th e W ilton bank as cashier. Upon
th e consolidation of banks, he becam e
vice presid en t and cashier of th e F irs t
N ational Bank.
Mr. Steffen w as ever a w o rk er for
W ilton both as a m em ber of fra te rn a l
orders and a p a rticip an t in all civic
activities.

The North Dakota Program
(C ontinued from page 19)
kota—B. E. Groom, Fargo, G reat­
er N orth D akota A ssociation
B ank E arn in g s and E xpenses, N orth
D akota B anks—H. C. Tim berlake, F ed eral R eserve Bank, M in­
neapolis
L uncheon—St. Leo’s Catholic C hurch
Afternoon Session
R ainbow s and Green Cheese—W. W.
Gail
A ddress—F. B. B agshaw , K. C., Regina,
S aschatchew an
C ounterfeit Money-—Joseph E. Sulli­
van, U. S. Secret Service, St. Paul
4:00 Golf—M inot C ountry Club
7:00 Buffet S upper — M inot C ounty
Club
9:00 E n te rta in m e n t and Dance—Mi­
not C ountry Club
Saturday, June 15
9:30 A. M. S harp—Opening, E lk ’s Club,
F ra n k R. Scott, P resident, P re ­
siding
E lection A. B. A. Officers for N orth
D akota
E lection S tate A ssociation Officers
A ddress—A. L. Janes, G eneral Coun­
sel, G. N. Ry., St. Paul
A ddress—Hon. D. J. Needham , Gen­
eral Counsel, A. B. A., W ashington, D. C.

R eport—Com m ittee on Public R ela­
tions
U nfinished B usiness
New B usiness
R eport—Com m ittee on R esolutions
Selection of 1941 C onvention City
A djournm ent
2:00 P. M.: M eeting—E xecutive Coun­
cil, L eland-P arker H otel
Ladies’ Program
Friday, June 14
1:30 P. M. Bridge Luncheon
M inot County Club
7:00 P. M. Buffet Supper
M inot County Club
9:00 P. M. E n te rta in m e n t and Dance
M inot County Club
Entertainment
Thursday, June 13

A fternoon: Golf—M inot C ountry Club
6:00 P. M. Sm oker and D utch Lunch
M inot C ountry Club
Friday, June 14

12:00 Noon—St. Leo’s Catholic Church
1:30 P. M. Bridge L uncheon for L a­
dies, M inot C ountry Club
4:00 P. M. Golf—M inot C ountry Club
7:00 P. M. Buffet S u p p e r — M inot
C ountry Club
9:00 P. M. E n e te rta in m e n t and Dance,
M inot C ountry Club
(T u rn to page 58, please)

58

MONTANA NEWS
E T H E L W. W A LK ER
Secretary-Treasurer
H elena

G reat Falls, W ednesday, May 22nd.
T his w as one of a series of an n u al
m eetings held by v arious groups of
th e state association, as follows: T erry,
May 18th and 19th; P oplar, May 20th;
F o rt B enton, May 21st; G reat Falls,
May 22nd; M issoula, May 23rd; Dillon,
May 24th; B ar Lazy D R anch n ear
Columbus, May 26th.

Sells Bank at Shelby
O. M. J O R G E N S O N
P resident
B i l li n g s

The

Montana Convention
G lacier National Park, June 17 and 18

In connection w ith th e sale of th e
F irs t S tate B ank of Shelby, M ontana,
to L. A. C hristensen, form erly p resi­
d en t of th e P roduction C redit C orpora­
tion of Omaha, th e C harles E. W alters
Company, b an k salesm en of Omaha,
check up an o th er “b u ll’s-eye,” th e sale
having been effected to th e first p u r­
chaser introduced. Mr. C hristensen
has already ta k e n possession and suc­
ceeds R. D. M ountain as president.

N O RTH D A K O T A
H IL E all pro g ram and e n te rta in m e n t details are n ot com plete as w e go to
press, Mrs. E th el W. W alker, se cretary of th e M ontana B ankers A ssociation,
PRO GRAM
h as announced th e nam es of several top-notch speakers w ho w ill address th e
(C ontinued from page 57)
an n u a l convention of th e A ssociation to be held a t M any Glaciers H otel in Gla­
cier N ational P a rk on M onday and T uesday, Ju n e 17th and 18th.
Saturday, Ju ne 15
S ta rtin g w ith O. M. Jorgenson of Billings, p resid en t of th e M ontana B ankers A fternoon: Golf Course A vailable for
A ssociation, M ontana m em bers w ill h e a r Dr. H . H. P reston, dean of th e college
V isitors—M inot C ountry Club
of econom ics and business of th e U n iv ersity of W ashington, a t Seattle, and L au r­
Committees in Charge
ence L unden, of th e U n iv ersity of M innesota a t M inneapolis, as w ell as W . W .
G
eneral
Com m ittee: R obert E. B ar­
(B ill) Gail, of B illings, an d h u m o rist an d lecturer.
ron, chairm an; R ay B randt, vice ch air­
A n out-of-state b a n k e r to address th e m eeting is F ran k P ow ers, p resid en t of
man; H. M. G rant, C. P. K jelstrup, W.
th e K anabec S tate B ank of Mora, M innesota, and a form er p resid en t of th e
E. Tooley.
M innesota B an k ers A ssociation.
R eservation Committee: Joe W estL. E. B irdzell, g eneral counsel for th e F e d e ra l D eposit In su ran ce C orporation, lake, chairm an; T. A. Solheim, C. L.
W ashington, w ill be a speaker, and th e A m erican B ankers A ssociation w ill be H awley.
rep re se n te d by D. J. N eedham , g en eral counsel for th a t organization.
T ran sp o rtatio n Com m ittee: H. C.
M ontana has th e re p u ta tio n for holding a g ran d and glorious m eeting every Dahl, chairm an; A rth u r F reer, Chas.
year, and th is 1940 g a th e rin g prom ises to be one of th e best.
C. M orton.
R eg istration C o m m itte e : L ucille
C unningham , N ellie Renw ald, M uriel
Johnson.
Golf Committee: Chas. F. A nderson,
c u ltu ral economics a t M ontana State,
Meeting in Helena
chairm
an; J. C. H unt, Al. F isher.
and R. T. Clark, d irector of th e Mon­
T h ree h u n d re d M ontana b ankers,
Ladies Committee: Mrs. R ay B randt,
ta n a State College d ep artm en t of a n i­
guests of th e H elena b ra n c h of th e
m al h usbandry, w ere speakers d u ring chairm an; Mrs. C. P. K jelstrup, Mrs.
F ed eral R eserve B ank of M inneapolis,
H. M. G rant, Mrs. W. E. Tooley, Mrs.
the d ay ’s sessions.
recen tly h eard financial livestock and
H. C. Dahl, Mrs. J. C. W estlake, Mrs.
a g ric u ltu ra l problem s discussed from
T. A. Solheim
Dies on W est Coast
every stan d p o in t in a series of lectures
A llen P. Bowie, 70, a form er prom i­
delivered by leading econom ists of th e n e n t resid en t of P hilipsburg, died re ­
Sure Shot
n orth w est.
cently a t his hom e in Seattle, W ash­
T he Irish n ig h t w atchm an at th e ob­
T he one-day m eeting concluded w ith
ington. H e had been a resid en t of tlie
a d in n e r and dance a t th e Civic C enter coast city for th e p ast 15 y ears an d serv ato ry w as new. He paused to
w atch a m an p eerin g th ro u g h a large
auditorium .
p rio r to th a t tim e he spent m any y ears
G overnor Roy E. A yers, W. C. Cof­ in th e b an king business in B utte and telescope. J u s t th e n a sta r fell. “Man
alive,” he exclaim ed w ith am azem ent,
fey, ch airm an of th e board of directors P h ilipsburg.
“you’re sh u re a foine shot.”
of th e F ed eral R eserve B ank of M inne­
F ro m 1918 to 1920, Mr. Bowie w as a
apolis; A. L. S trand, p resid en t of Mon­ m em ber of th e state ex am in er’s staff at
True Enough
ta n a State College; O. S. Pow ell, first H elena. F ro m 1920 to 1925 he w as
A n agitato r w as addressing a band of
vice p resid en t of th e F ed eral R eserve cashier of th e F irs t S tate B ank at
B an k of M inneapolis; R. B. Heflebower, P h ilipsburg. He left in 1925 for th e strikers.
“Only $12 a w eek!” he cried; “how
d irecto r of th e school of business ad ­ coast.
can a m an be a C hristian on $12 a
m in istra tio n a t W ash in g to n S tate Col­
w eek?”
lege, Roy J. W. Ely, professor of eco­ Group Meetings
“How,” yelled a voice, “can he be
G roup 5 of th e M ontana B ankers
nom ics a t th e U n iv ersity of M ontana;
H arold F. H ollands, professor of a g ri­ A ssociation held its an n u al m eeting in a n y th in g else?”

W

Northwestern Banker


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Federal Reserve Bank of St. Louis

June 19JO

59
T. J. B arclay, new m em bers of th e
board of governors.
H oldover m em bers of th e board are
R. E. W iley and N. A. Lysne. R etirin g
officers are Lloyd Lorentzen, president;
V irgil Allen, vice president; A lfred Ambrosen, secretary -treasu rer, and F. H.
D arland and F lorence Sandberg, m em ­
bers of th e board of governors.

IOWA NEWS

Pioneer Dies
C. R . G O S S E T T
President
S i o u x City

Clinton National Celebrates
T h ree-q u arters of a ce n tu ry of b a n k ­
ing service to Clinton w as rou n d ed out
last m o n th by th e C linton N ational
B ank, w hich opened its doors to th e
public M ay 1, 1865. T he b an k h ad its
begin n in g a t th e so u th w est co rn er of
w h a t now is F ifth A venue, South, and
F irs t Street.
In th e in te rv e n in g seventy-five y ears
it h as provided a service to th e public
w hich has m ade possible th e develop­
m e n t of m an y of C linton’s m ost th riv ­
ing bu sin ess an d in d u stria l in s titu ­
tions. Out of th e im m ediate group
w h ich organized th e b an k cam e th e
individuals responsible for m an y fine
C linton in d u strie s and for such in sti­
tu tio n s as th e C linton W ater Com pany,
th e Clinton Gas, L ig h t & Coke Com­
pany, now th e In te rs ta te P ow er Com­
pany, and th e C linton S treet R ailw ay
Com pany.
T he C linton Savings B ank w as o r­
ganized in 1875 and has been operated
as an affiliate of th e C linton N ational
B an k in th e sam e build in g and over
th e sam e co u n ter an d w ith th e sam e
personnel, including directors.
P re se n t officers and d irecto rs are:
P resid en t, L. J. S chuster; vice p re si­
d e n t an d cashier, L. J. D erflinger; vice
presid en ts, F. O. K ersh n er and A. L.
Schuyler; a ssista n t cashiers, A. F.
B ohnson, W. J. W egener an d F re d W.
Stam pe. M em bers of th e board of di­
recto rs of th e C itizens N ational B ank
are: L. J. S chuster, A. L. S chuyler, Dr.
F. O. K ersh n er, L. J. D erflinger, A. F.
Bohnson, Jo h n E. M ooney an d P e te r
H. P etersen .

FRANK W ARNER
Secretary
D e s M o in es

m ents and tim e and one-half over tim e
w as paid as req u ired by th e law.

Change in Personnel
Claude E. S in n ett has been nam ed
m anager of th e personal loan d e p a rt­
m en t of th e U nited Hom e B ank &
T ru st Company, M ason City, succeed­
ing M. H. W iegm an. C. F. W eaver has
also joined th e staff of th e U nited
H om e as m anager of th e public re la ­
tions and business extension d e p a rt­
m ents.

Mason C ity A . I. B.
T w enty m em bers of th e A m erican
In stitu te of B anking’s group study
class in M ason City held a b an q u et at
th e M ason City C ountry Club, w hich
m arked th e end of four y ears of w ork
for 14 of th e class m em bers.
N ew officers of th e group w ere
elected. T hey are R aym ond C. K eister,
president; H a rry E. Van E very, vice
p resident; Jam es R ichardson, secre­
ta ry -treasu rer, and W. W. Boyd and


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Federal Reserve Bank of St. Louis

To Minneapolis
W. L. W ilder, Cedar Falls, assista n t
cashier a t th e F irs t N ational Bank, has
accepted a position a t th e M arquette
N ational B ank in M inneapolis, M inne­
sota, and has begun his duties th ere.

Newton Group
Seven b ank em ployes from N ew ton
w ere m em bers of a group of 17 th a t
studied in an A m erican In stitu te of
B anking class in G rinnell th ro u g h th e
w in te r m onths, m eeting reg u larly for
class sessions a t a local bank.
The N ew ton group included L. H.
Macy, R obert Quigley, George K ruse,
A rnold P eters, H elen Vance, B eulah
C hollett and M ary Louise Mofhtt.
George K ruse of N ew ton has been
nam ed p resid en t of th e group p lan n in g
to continue th e stu d y nex t w inter, an d
R ay W elle of Sully has been nam ed
secretary-treasurer.

July Payment
More th a n 30,000 depositors of th e
fo rm er U nion Savings B ank and T ru st
Company, D avenport, w ill receive a 15
p er cent p aym ent to taling $1,046,869 by
Ju ly 1st. T he receivership for th e
b ank has on h an d $600,000, and w ill
borrow $450,000 from th e D avenport
B ank and T ru st Company.

Gives Convention Talk

Closed Half Day
D uring th e m o n th s of June, Ju ly and
A ugust, th e Peoples T ru s t and Savings
B ank, Indianola, w ill close a t noon
ev ery T h u rsd ay , it w as announced.
T he action is ta k e n to com ply w ith th e
w ages an d h o u r act w hich p erm its only
42 h o u rs w o rk p er w eek. Since 1938
th e b a n k h as been a tte m p tin g to m eet
th e re q u ire m e n ts of th e act b y allow ­
ing th e em ployes one-half day off p er
w eek. T his did n o t m eet th e re q u ire ­

Carl H olter, P ostville’s oldest resi­
dent, w ho w ould have been 93 years
old Ju n e 30th, died recently a fte r an
illness of four m onths.
Mr. H olter had been presid en t of
the Citizens State B ank for the last five
years and for m any y ears w as vice
president. He had been a d irector of
th e b an k from th e tim e of th e organi­
zation in 1891.

R. R. R O L L I N S
M r . R o l l i n s , v i c e p r e s i d e n t of t h e B a n k e r s
T r u s t C om pany, D es M oines, and im m e d ia te p a s t
c h a i r m a n o f G r o u p S ix , h a s b e e n e l e c t e d p r e s i d e n t
of th e W a k o n d a C o u n try Club, D e s M o in es.

B.
P. Olsen, au d ito r of th e M uscatine
B ank an d T ru st Company, addressed
th e six th an n u al M id-Continent R e­
gional C onference of th e N ational A s­
sociation of B ank A uditors and Comp­
tro llers on May 17th-18th in M inne­
apolis.
Mr. Olsen, acting in th e capacity of
ch airm an of th e board of governors of
th e Iow a A ssociation of B ank A uditors
and C om ptrollers, has gained u n p rece­
dented gro w th an d broadening activ i­
ties of th e state association.

P

"W
$

•—“
per L e f t — T h e W a lla c e - H o m e s te a d
m pany publishes W a llac es' F arm er
i p rin ts m any other periodicals, o
p e r R i g h t — -T he t r a n s m i t t e r of Rai S t a t i o n W M T , on e of 18 I o w a
ti o n s . « L e f t C e n t e r — T h e raodi p l a n t of t h e P a r < e r s b u r g E c l i p s e
Right
>ifies I o w a ' s w e e k l i e s .
a
n t e r — 3,250,000 m a g a z i n e c o p i e s p e r
inth a r c p r i n t e d in t h e M e r e d i t h
int. * L o w e r L e f t — T h e R e g i s t e r
d T r i b u n e B u i l d i n g h o u s e s th e s e
o d a i l i e s , tw o r a d i o s t a t i o n s a n d
ices of L ofor
o k , FRASER
Inc. * L o w e r R i g h t
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Federal Reserve Bank of St. Louis

mt
p o'- r

-»■ ..i

N EWS
To the average person, publishing of newspapers and maga­
zines and operation of radio stations is a romantic “game.”
Few regard it as the big business it is—particularly in Iowa
where “spreading the news" is a major industry—paying nearly
20,000 people more than $15,000,000 in full and part time wages.
Both newspapers and radio occupy a vitally important spot
in the everyday living of every resident of the state. There are
44 daily newspapers in Iowa with circulation of almost 800,000
—more than sufficient to cover the approximately 650,000 homes
in the state. Four hundred fifty weekly newspapers have a
circulation of more than 950,000.
Staggering is the amount of paper that goes into these Iowa
newspapers. If all the pages of all the Iowa papers printed in
a year were joined edge to edge, they would make a ribbon 23
inches wide and almost 1,000,000 miles long.
Des Moines is the 52nd largest city in the country. Yet
only 7 cities have dailies with circulation as large as that of the
Des Moines R e g iste r and T r ib u n e . One thousand full time and
5,500 part time employes work for this one company.
Iowa also enjoys unusual radio facilities through 18 stations.
In W H O , Iowa has one of the few 50,000-watt power, clear
channel stations in the country. Eight regional stations in the
state, offering outstanding entertainment and informational
service, and nine local stations complete the picture.
Iowa also occupies an important place in the periodical field.
In Des Moines is the Meredith Publishing Company which
publishes B e tte r H o m e s & G a rd e n s and S u c c e ss fu l F a r m in g —two of the largest magazines in their respective fields with total
circulation above 3,250,000. Des Moines is also the home of
Look, Inc., a pioneer in the picture magazine field.
It is particularly interesting that L o o \ and B e tte r H o m e s &
G a rd e n s should be edited in Iowa, as almost all other magazines
in their two fields are edited and published in the east.
Des Moines also is the home of the Wallace-Homestead Com­
pany, publisher of one of the strongest state farm papers with
a bi-weekly circulation of 280,000 copies. The Wallace-Home­
stead Company also custom-prints 19 other periodicals which
have state, regional and national circulation totaling 142,900
copies per issue, among them the N o r th w e s te r n B a n k e r.
Iowa is one of the most literate states in the country. It is
entirely fitting that it should be served by an information service
so large it has become one of the state’s major industries.
Bankers Trust Company is happy to serve, and to use the
facilities of some of the state’s “news spreading” agencies.
Bankers Trust Company also is happy to render a correspondent
service to Iowa banks as outstanding as is the service rendered
to the state by the publishing and radio field.

BANKERS TRUST
COMPANY

6th and L ocust Streets
D es M o in e s, I ow a

M e m b e r F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n


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Federal Reserve Bank of St. Louis

M e m b e r F e d e ra l D ese rv e S y s te m

62
•

Bank Sold
The La P o rte City S tate B ank has
been sold to L. C. McGill of N orthw ood,
Iowa, and E d R onglin of H anlontow n,
w ho w ill tak e possession on or before
Ju n e 1st, as announced by P re sid e n t
J. J. M aloney.
McGill w as cashier of th e Com m er­
cial State B ank a t Independence for
m any years, and recen tly has been a
ban k receiver. R onglin is cashier of
th e b ank at H anlo n to w n a t p re se n t
and w as form erly a b an k receiver.

I O W A

N E W S

•

M aloney has not announced his
plans for th e fu tu re b u t does n ot ex­
pect to rem ain in La P o rte City. He
organized the La P o rte City S tate B ank
th re e y ears ago in Septem ber, w ith
C. A. B rust, L. L. F roning, W illiam
B lough and E d E n tz as directors.

n o rth h alf of T am a county and is
know n to m any m en in and aro u n d
R einbeck and w as one of th e m en w ho
helped to reorganize th e L incoln B ank
a t Lincoln, Iowa, and place th e in stitu ­
tion in Reinbeck.

Dies in New Hampton

County Meeting

F. W. B row n, 77, died recen tly a t his
hom e in New H am pton, follow ing a
th re e w eeks’ illness.
Mr. B row n is well know n in th e

E ighteen rep resen tativ es of A llam a­
kee county banks atten d ed a d in n er
held in W aukon. A fter th e dinner,
th e group m et a t th e W aukon S tate
B ank and held a discussion on b an king
problem s.
B anks rep resen ted w ere th e New
A lbin Savings Bank, F a rm e rs and M er­
ch ants Savings Bank, W aterville; Postville S tate Bank, Citizens State Bank,
Postville; K ern d t Bros. Savings Bank,
Lansing, and th e W aukon S tate Bank.

Resigns
Jam es Collinson, em ployed in th e
F irs t N ational B ank in Denison for th e
p ast y e a r and a half, resigned to accept
a position in a b ank at Sauk Rapids,
M innesota.

President Dies

C L O S E T O C H I C A G O ’S
BASI C I N D U S T R I E S

F u n e ra l services for George W.
Sm ith, 71, p resid en t of th e H arco u rt
Savings B ank m ore th a n 20 years, w ere
held recently.
Sm ith had been a d irector of th e
H arco u rt ban k since it w as organized.
H e w as a m em ber of th e board of di­
rectors of th e F a rm e rs E lev ato r and he
served on th e tow n council w hile liv­
ing in H arcourt.

County Meeting
• The truest measure of a bank's utility as a correspondent is the
degree and capacity in which it is employed by basic industries in its
own area. It is significant that the list of Chicago industries which the
American National Bank is privileged to serve—including the autom o­
tive parts industry —has grown uninterruptedly. Evidence, we believe,
that you, too, will find in the complete and modern facilities of this bank
a constructive answer to the handling of your Chicago transactions.

AMERICAN

NATIONAL

AND TRUS T

BANK

COMPANY

C A ica^a
LA

SALLE

STREET

AT

W A S H I N G T O N

M em b er F ede ra l Dep os it Insura nce Co rp or ati o n

C O M M E R C I A L

Northwestern Banker

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

•

C H E C K I N G

June 1940

•

SAVINGS

•

TRUSTS

H om er Jones, w ho is associated w ith
th e F ed eral D eposit In su ran ce Corpo­
ratio n in W ashington, D. C., w as g u est
sp eaker a t a d in n er m eeting of th e
L ouisa-W ashington B ankers A ssocia­
tion a t W ashington.
Seventy-nine atten d ed th e dinner,
w hich w as served by th e P resb y terian
Ladies Aid Society. B ankers of Louisa
and W ashington counties and th e ir
w ives w ere present. F ra n k Crone,
president, presided over th e m eeting.

Cashier Resigns
H en ry W. Campbell, cashier of th e
F a rm e rs T ru st and Savings B ank in
Spencer since A ugust, 1938, has re ­
signed his position, effective Ju n e 1st.
Cam pbell cam e to Spencer from L in ­
coln, N ebraska, w h ere he h ad a w ide
background in ban k in g and allied b u si­
ness in stitu tio n s.

63

Waterloo Bank Increases Capital
H E capital of th e N ational B ank of
W aterloo has been increased from
$200,000 to $250,000, C harles S. M cKin­
stry , vice p resid en t, announced re c e n t­
ly in connection w ith issuance of a
sta te m e n t of condition a fte r n early
seven y e a rs of operation.
T he in crease w as achieved th ro u g h
declaratio n of a stock dividend am o u n t­
ing to $30,000 an d sale of $20,000 of new
stock to th e p re se n t stockholders.
T he e n tire capital now consists of
com m on stock, w h ereas th e $200,000
capital w as m ade up of $140,000 com ­
m on stock and $60,000 preferred . P re ­
fe rre d stock, w hich w as ow ned by th e
R econ stru ctio n F in an ce C orporation,
h a s all been retired .

T

S upervisors of S tate B anks—R ich­
m ond, V irginia.
Sept. 22-26—A m erican B ankers Asso­
ciation—A tlantic City, N ew Jersey.
Oct. 16-19 — N ational A ssociation of
B ank A uditors and C om ptrollers—
St. Louis.
Oct. 28-30—F inancial A dvertisers As­
sociation — The H om estead, H ot
Springs, V irginia.
State Meetings
Ju n e 5-7—M innesota—M inneapolis.

Ju n e 11-12 — W isconsin, place u n d e­
cided.
Ju n e 14-15—N o rth D akota—Minot.
Ju n e 17-18—M ontana—M any G laciers
H otel, G lacier N ational Park.
Ju n e 17-19—M ichigan—P an tlin d Hotel,
G rand Rapids.
Ju n e 21-22—Colorado—Stanley H otel,
E stes P ark.
Sept. 9-11—Iow a—Des Moines.

New Machine
A dding to th e up-to-date equipm ent
of th is m odern b an king house, the
T ain to r Savings B ank is in stalling a
new Proof and T ran sit m achine m ade

IR S T N ational Bank service is a specialized kind
of service.

It is particularly attractive to banks that

are concerned with grain and livestock items in this area.
O u r officers are skilled in agricultural m atters, from
long years of practical experience.

W e invite you to

make use of this bank in Sioux City, for all items
including livestock, grain and hay proceeds.

O FF IC E R S

CHARLES

A. S. H A N F O R D
P resident
A. G. S A M
V ice P re sid en t
J. P. H A I N E R
V i c e P r eCsMi U
dC
e 1nUt
. ,
_
F R I T Z F R I T Z S O N , V ice P re s id e n t &

S. M c K I N S T R Y

D uring th e tim e it has been in b u si­
n ess th e su rp lu s of th e b an k has been
in creased three-fold—from $50,000 to
$150,000 — largely th ro u g h earnings,
M cK instry said.
F ro m th e date th e b an k w as o rg an ­
ized on Ju n e 15, 1933, deposits have
g ro w n from slig h tly m ore th a n one
m illion dollars to appro x im ately seven
m illion.
T he p erso n nel has been doubled,
from 17 to 34; q u a rte rs have been en ­
larg ed by rem odeling of th e b a n k ’s sec­
ond floor space, an d a p n eu m atic tu b e
system betw een th e first and second
floors h as been installed.
Jam es M. G raham is p resid en t of th e
bank.

M em ber

Convention Calendar
J u n e 3-7—A m erican In stitu te of B an k ­
ing—H otel S tatler, Boston.
Ju n e 17-29—G raduate School of B an k ­
ing — R u tg ers U n iversity, New
B runsw ick, N ew Jersey.
Sept. 18-20—N ational A ssociation of

_

F e d e r a l D e p o s it
C o rp o ra tio n

J . R. G R A N I N G
A s s is ta n t C ashier
E . A. J O H N S O N
A ss is ta n t C ashie r
J. T . G R A N T
A s s i s .--ta n t C ashie r
C ashier

In s u r a n c e

BANK
IN S I O U X C I T Y

Northwestern Banker

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

__

Jane 19W

64

• IO W A
by B u rro u g h s A dding M achine Com­
pany.
The m achine is th e la te st of its kind
and incorporates several tran sactio n s
into one m achine, th u s elim inating
long, h ard and tedious w ork.

Heads County Bankers
Charles L eutt, M onticello, w as nam ed
presid en t of th e Jones C ounty B ankers
A ssociation a t a m eeting held recently
at M onticello.
O ther officers nam ed w ere George
Paulsen, Onslow, vice president; Mel­
vin Ingw ersen, Onslow, tre a su re r, and

N E W S

•

L eonard J. W egm an, A nam osa, secre­
tary.
B anks from M artelle, Anam osa, Monticello, Onslow, W yom ing and Oxford
Ju n ctio n w ere rep resen ted a t th e m eet­
ing. D inner w as served to th e organi­
zation a t 6:30 p. m. M arvin Levsen,
D eW itt, spoke on “L obbying” follow ­
ing the dinner.

and only a fter the m iddle of M arch h ad
he been confined to his hom e and bed.
In 1913 Mr. T hom sen becam e p resi­
dent of the Citizens S tate B ank in
W yom ing, at w hich tim e this b an k w as
organized. He had lived in the vicinity
m ost all his life and before m oving to
tow n lived on a farm at th e w est edge
of W yom ing.

Dies in Wyoming

To Increase Capital

Jo h n T hom sen passed aw ay recently
a fte r an illness of a n um ber of w eeks,
at his hom e in W yom ing. Mr. T hom ­
sen had been failing for th e p ast year

D irectors of th e F a rm e rs Savings
B ank of T raer have announced th a t
th ey w ill increase its capital from $25,000 to $40,000, as soon as the n ecessary
details can be com pleted.
The $15,000 of new capital w ill be
tak en from th e undivided profits and
w ill be issued to th e p resen t stockhold­
ers as a stock dividend.
The last published statem en t of th e
ban k show s undivided profits of m ore
th a n $17,000.

With Ft. Dodge National

or

F

72

years,

Live Stock National Bank has been lo­

A new em ploye of th e F o rt Dodge
N ational B ank is A. E. L indquist, Jr.
Mr. L indquist is a son of A. E. L ind­
quist, Sr., w ell-know n Gowrie ban k er,
and has resided in W ebster co unty
m ost of his life.
He w as grad u ated from the U niver­
sity of Iow a college of com m erce an d
for four and a half y ears w as asso­
ciated w ith th e farm loan division of
th e M etropolitan Life In su ran ce Com­
p any in F o rt Dodge. F o r th e p ast 10
m onths he has been in th e real e state
and in su ran ce business in Ida Grove.

cated inside the Union Stock Yards — serving the

cattle raisers, the feeders, the packers and all the other
interests represented in this great central market.
If yours is an agricultural bank, you will find particular
value in all that this specialized experience means. The
“ on-the-spot” knowledge of agricultural developments. The
ability to determine and interpret long-term trends. The
understanding of the common problems of all agricultural
banks.
Today nearly 500 banks find benefit in Live Stock N a­
tional’s prompt, experienced correspondent services. May
we discuss them more fully with y o u ?

L iv e S t o c k
National Bcftllk of Chicago
UNION

MEMBER

FEDERAL

N o r th w e s te r n B a n k e r


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

STOCK

DE P OS I T

J u n e 19J0

YARDS

I N S U R A N C E

C O R P O R A T I O N

In W ebster City
“B ill” S teinbruck has resigned as
m anager of th e Q uaker Oats Com pany
a t E dna, Iowa, and has accepted a posi­
tion in the F irs t S tate B ank at W eb ster
City. He has been em ployed by the
Q uaker Oats Com pany for 12 years, th e
first four y ears in Rock Rapids, a n d
th e last eight y ears in Edna.

Heads Scott Bankers
P. A. Dietz, p resid en t of th e W alcott
T ru st and Savings B ank, w as nam ed
p resid en t of th e Scott County B an k ers
A ssociation at a m eeting of th a t or­
ganization held at Hotel B lackhaw k in
D avenport. P resid en t Dietz succeeds
R obert J. T ank, cashier of th e C entral
T ru st and Savings B ank of Eldridge.
O ther officers elected w ere: H erm an
Staak, cashier of th e D avenport B ank
& T ru st Company, vice p resident;
Louis M artin, a ssistan t cashier of th e
F irs t T ru st and Savings Bank, tre a s­
u rer, and G erh ard t B runs, cashier of
th e L ib erty T ru st and Savings B ank,
New L iberty, secretary.

65

News From

DCS MùitJCS

ES M OINES b a n k ers w ho atten d ed
th e A m erican B ankers A ssociation
C onvention at H ot Springs, V irginia,
re tu rn e d hom e sh o rtly th e re a fter, w ith
th e exception of H erbert H orton, p res­
id en t of th e Iowa-Des M oines N ational
B ank and T ru st Co., w ho rem ained in

D

tional Bank. Secretary, H arriett Mc­
Coy, Iowa-Des M oines N ational B ank
and T ru st Co. T reasu rer, John Bauserm an, Valley Savings Bank. W om en’s
re p resen tativ e, M a r y M ackow sky,
B an kers T ru st Co.
A t th e an n u al business m eeting,
D ave Colby, N ational A. I. B. E xecu­
tive Councilm an from St. Louis, spoke
on “W hich W ay A re You T raveling?”
The re tirin g president, Leo R egan, p re­
sented W ilbur Ford of th e Iowa-Des

M oines N ational B ank and T ru st Co.
the scholarship aw ard for th e highest
grade in any of the classes for th e p ast
year. The new officers and th e schol­
arsh ip w in n er w ill go to th e national
A. I. B. convention held in Boston
Ju n e 3 to 7th.
T he bow ling prizes w ere also p re ­
sented a t th e business m eeting. Cap­
ital City State B ank and B ankers T ru st
Bees tied for first place. O rville Gore
took m ost of th e individual prizes. He
took high gam es, high series, and also
high average.
The Des Moines C hapter of th e
A m erican In stitu te of B anking, com-

★ H EAD Q UARTERS
FOR NORTH EASTERN
IO W A BAN KERS
STATEM ENTMAY 16, 1940
RESOURCES.

H E R B E R T L. H O R T O N
H e w a s e le c te d v ic e p r e s id e n t o f th e R eserv e
C ity B a n k ers A s s o c ia tio n at th e re c e n t an n u al
m e e tin g in H o t S p r in g s, V ir g in ia .

H ot S prings for th e a n n u al m eeting of
th e R eserve City B ankers.
T he Des M oines group included AVilliam J. Goodman, ch airm an of th e Cen­
tra l N ational B ank and T ru st Co.; A.
T. D onh ow e, a vice p resid en t of th e
sam e bank; Clarence A. D iehl, a vice
p resid en t of th e Iowa-Des M oines N a­
tional B ank and T ru st Co., and F rank
W arner, secretary of th e Iow a B ankers
A ssociation.
Mr. Diehl atten d ed as a m em ber of
th e executive council of th e natio n al
body. Mr. D onhow e w as Iow a vice
presid en t of th e n atio n al organization
in 1938.
Mr. H orton, w ho has been a d irector
of the R eserve City A ssociation, and
m ore recen tly tre a su re r, w as elected
a vice p resid en t of th e o rganization a t
th e a n n u a l election of officers.
T he Des M oines A m erican In stitu te
of B anking election w as held Tuesday,
M ay 14th, and th e follow ing officers
w ere elected:
P resid en t, K enn eth Griffith, B ankers
T ru st Co. F irs t vice p resid en t, A1
R odine, Iowa-Des M oines N ational
B ank and T ru s t Co. Second vice p re s­
ident, E dw ard B liquez, C entral N a­

Cash and due from banks................................... $1,994,474.33
Loans and discounts.............................................. 2,604,535.26
United States Government securities................
870,179.90
State, county & municipal securities.................. 1,969,443.77
Other bonds ............................................................
197,809.55
Stock in Federal Reserve Bank...........................
12,000.00
Overdrafts .................................................................
841.66
6.918.38
Furniture and fixtures...........................................
Accrued interest receivable.................................
29,341.94
$7,685.544.79
LIABILITIES
Capital stock—common.......................................$ 250,000.00
Surplus .....................................................................
150,000.00
Undivided profits....................................................
123,369.32
Reserve for taxes, interest, etc.........................
46,026.74
Interest collected butnot earned..........................
12,892.79
Deposits ..................................................................... 7,103,255.94
$7,685,544.79

T he National Bank
of Waterloo
M
MEMBER . . Federal Reserve System
Federal Deposit Insurance Corporation

Northwestern Banker

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

June 19^0

66

9 9 % OF PAYC ACCOUNTS^)

ARE N E W B U S I N E S S /
•

.

S& yS

N ebraska B a n k e t

(N a m e on R e q u e st)

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With the PAYC No-Minimum-Balance Plan
Experience of other bankers is convincing proof
that the PAYC (Pay-As-You-Check) System will
bring profitable new business into your bank.
Office workers, wage earners, professional men
and women, housewives and others in your com­
munity are ready to open PAYC Accounts NOW !
PAYC solves service charge and minimum bal­
ance problems and eliminates account analysis.
Builds business in other departments by exposing
new customers to all bank services. Creates good­
will!
A complete PAYC outfit is inexpensive. Easy to
install. Investigate now—write today!

G et P ro fit B uilding D e ta ils Today
G et y o u r sh a re o f th is s m a ll d e p o si­
to r b u s in e ss .
W r ite to d a y , le t us
s h o w y o u h o w . P A Y C is a co p y ­
rig h te d p la n b u t no r o y a lty is
ch a rg ed to b a n k s u s in g th e s y ste m .
C o m p lete d e t a ils , e x p e r ie n c e s of
o th er b a n k ers, s e n t on re q u est. A d ­
d ress D ep t. N W -J N

U n ite d S t a t e s C h e c k B o o k Co.
1309-15 HOWARD STREET

•

A T THE IO W A

OMAHA. NEBRASKA

G R O U P M EETIN G S

P ic tu re d a t th e rig h t a re a n u m b er o f th o se a tte n d in g th e
1940 G roup M e e tin g s o f th e Io w a B a n k e rs A sso c ia tio n . R e a d ­
in g fro m le f t to r ig h t, th o se in th e p ic tu re s a re, 1— J o h n N.
O ’N eill, C ash ier, F i r s t T ru s t a n d S a v in g s B a n k , A rm stro n g ,
Io w a ; H . N. B oyson, v ice p re sid e n t, M e rc h a n ts N a tio n a l B a n k ,
C e d ar R a p id s, Io w a ; H . J . B uel, v ice p re s id e n t, F a rm e rs N a ­
tio n a l B a n k , W e b s te r C ity, Io w a. 2— F r a n k W a rn e r, se c re ta ry
o f th e Io w a B a n k e rs A sso c ia tio n , D es M o in es; C h a rlie R. G os­
s e tt, p re s id e n t o f th e Io w a B a n k e rs A sso c ia tio n , S ioux C ity ;
a n d D. W . B a te s, S u p e rin te n d e n t o f Io w a B a n k in g , D es
M oines. 3— L . A. K e m p f, a s s is ta n t c ash ie r, N o rth e rn T ru s t
C om pany, C hicago; a n d J . M. H u tc h in so n , t r u s t officer of th e
D a v e n p o rt B a n k a n d T ru s t C om pany, D a v e n p o rt. 4— H e n ry B.
W a lte rs, p re s id e n t o f th e T ip to n S ta te B a n k , T ip to n , Iow a,
w ho is a m em b er o f th e “ W h is k e r C lu b ” , w h ich is c e le b ra tin g
T ip t o n ’s C e n te n n ia l on J u ly 3 rd a n d 4 th ; a n d N o rm a n B.
S haffer, vice p re s id e n t of th e C o n tin e n ta l-Illin o is N a tio n a l
B a n k a n d T ru s t C om pany o f C hicago. 5— C. V. G reg o ry , a sso ­
ciate p u blisher of Wallaces’ Farmer and Iowa Homestead of Des
M oines a n d d ire c to r o f F e d e ra l R e se rv e B a n k o f C hicago, D es
M o in es; a n d J . R. C apps, cash ie r, C e n tra l N a tio n a l B a n k a n d
T ru s t C om pany, D es M oines.
6— A lb e rt H a lv o rso n , cash ie r,
S t. A n s g a r C itiz en s S ta te B a n k , S t. A n sg a r, Io w a , a n d H . S.
L ek w a, vice p re sid e n t, A c k ley S ta te B a n k , A ckley, Io w a. 7—
J o h n V. H a as, a s s is ta n t c ash ie r, N o rth e rn T ru s t C om panv, C hi­
cago, Illin o is ; A r th u r J . F re y , C o n tin e n ta l-Illin o is N a tio n a l B a n k
& T ru s t C om pany, C hicago, Illin o is ; L . K e n n e th B illin g s, a s s is t­
a n t v ice p re sid e n t, C ity N a tio n a l B a n k & T ru s t C om pany, Chicago, Illin o is ; R o b e rt E . H u n t, N o rth e rn T ru s t C om pany, C hi­
cago, Illin o is. 8— M a x v o n S c h ra d e r, c ash ie r, U n io n B a n k a n d
T ru s t C om pany, O ttu m w a, Io w a, a b o u t to m ak e a 300 y a rd
d riv e. 9— E . E . E ric k so n , v ice p re s id e n t and c a sh ie r, T oy N a ­
tio n a l B a n k , Sioux C ity, Io w a ; W. M. B a ile y , c ash ie r, H om e
S ta te B a n k , R oyal, Io w a ; a n d R. R. B ru b a c h e r, p re s id e n t, T oy
N a tio n a l B a n k , S ioux C ity, Io w a. 10— C h a rle s S. M c K in stry ,
v ice p re sid e n t, N a tio n a l B a n k o f W a te rlo o ; a n d J . J . M iller,
c ash ie r, W a te rlo o S a v in g s B a n k . 11— F . C. M oeller, p re s id e n t,
F t. D odge N a tio n a l B a n k , F t. D odge, Io w a ; P e te r G a ra to n i,
m a n a g e r, L e h ig h office of th e B u rn sid e S a v in g s B a n k ; H a r r y
T. H uff, c ash ie r, T he S ta te B a n k , F o r t D odge, Io w a . 12— J . W.
E d g e, v ice p re s id e n t a n d c a sh ie r o f th e C e n tra l S a v in g s B a n k
a n d T ru s t C om pany, E m m e ts b u rg , Iow a, a n d M rs. E d g e. 13—
M rs. C h a rle s S. M c K in stry , W a te rlo o , Io w a , a n d M rs. R. W.
W a ite , W aterlo o , Io w a . 14— J . J . M iller, c ash ie r, W a te rlo o S a v ­
in g s B a n k , W a te rlo o , Io w a ; C h a rle s B. B a rro n , cash ie r, S ta te
B a n k of V in to n , V in to n , Io w a ; J . L. K ra ll, c ash ie r, F a i r f a x S ta te

Northwestern Banker

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Federal Reserve Bank of St. Louis

June 19k0

posed of ju n io r officers and em ployees
of Des Moines banks, held its an n u a l
check and m oney adding contest re ­
cently at th e Iowa-Des M oines N atio n al
B ank and T ru st Co.
E lw ood Compton, B ankers T ru s t
Co., last y e a r’s w in n er in th e check
adding contest, again w on first h o n o rs
and a prize of $15 w hen he added cor­
rectly 150 checks in 1 m inute 54.5seconds. Mrs. Mary Crewe, C entral
N ational B ank and T ru st Co., w in n e r
of first honors in 1938, took second
place and $10 w hen she added th e
checks in 1 m in u te 57 seconds.
T hird prize of $5 w ent to A rnold
D ressier, C entral N ational B ank an d
T ru st Co., in 2 m in u tes 4.6 seconds,
w hile fo u rth prize of $3 w as w on b y
H arry Campani, Iowa-Des Moines Na­
tional B ank and T ru st Co., in 2 m in u tes
16 seconds.
A new check adding com petition fo r
bank em ployes of less th a n tw o y e a rs’^
experience w as w on by Max Barnhart,.
C entral N ational B ank and T ru st Co.,
w ho w as aw arded $3. P atrick H en ry „
Iowa-Des M oines N ational B ank a n d

>►

S a v in g s B a n k , F a ir f a x , Io w a. 15— G. L . H ill, c ash ie r, L is b o n
B a n k & T ru s t C om pany, L isb o n , Io w a ; a n d V a n V e ch te n , S h a ffer,
p re s id e n t, G u a ra n ty B a n k & T ru s t C om pany, C ed ar R a p id s, Io w a ,
16— Iv d e l Cleal, te lle r, C itiz e n s S ta te B a n k , Io w a F a lls ; E d n a
M ille r, te lle r, C itiz en s S ta te B a n k , Io w a F a lls ; E ile e n L ee, te lle r,
Io w a F a lls S ta te B a n k , Io w a F a lls ; M rs. M a ry Sheldon, teller,,
Io w a F a lls S ta te B a n k , Io w a F a lls . 17— V e rn e T. B o n n e tt, a s s is t­
a n t cash ie r, Iow a-D es M oines N a tio n a l B a n k & T ru s t Com pany,.
D es M oin es; a n d B. L. M cK ee, v ice p re s id e n t a n d c ash ie r, M u sca ­
tin e B a n k a n d T ru s t C om pany, M u sc a tin e . 18— V. H . R e id ,
cash ie r, P a lm e r S ta te B a n k , P a lm e r, Io w a ; J . L . C am pbell, c a sh ­
ier, H u m b o ld t T ru s t & S a v in g s B a n k , H u m b o ld t, Io w a ; R. H .
M ille r, p re sid e n t, Io w a S ta te B a n k , A lgona, Io w a. 19— F . E .
B re c k n e r, a s s is ta n t c ash ie r, A m e ric a n N a tio n a l B a n k , A rlin g ­
to n , Io w a ; a n d J . P . M alloy, cash ie r, C a sta lia S a v in g s B a n k ,
C a sta lia , Io w a . 20— A . S. B a g n all, vice p re s id e n t, L iv e S to c k
N a tio n a l B a n k , C hicago, Illin o is ; a n d C. F . H a rris , vice p re s i­
d e n t, S ta te B a n k , G lad b ro o k , Io w a . 21— L . R. M oeller, statea g e n t, S t. P a u l-M e rc u ry In d e m n ity C om pany, S t. P a u l, M in n e ­
s o ta ; W . E . S heldon, p re sid e n t, H om e T ru s t & S a v in g s B a n k ,
O sage, Io w a ; T. E . M cD onnell, sp e c ia l a g e n t, S t. P a u l-M e rc u ry
I n d e m n ity C om pany, S t. P a u l, M in n e so ta. 22— W. G. C. B a g le y ,
S ta te T re a s u re r o f Io w a, D es M oines. 23— R e a d y to te e off'
a t W aterlo o , l e f t to r ig h t: C. W . F o w ler, J r ., c ash ie r, P o w e ­
sh ie k C o u n ty S a v in g s B a n k , B ro o k ly n , Io w a ; W . R. C h itte n ­
den, a s s is ta n t c ash ie r, F a rm e rs S a v in g s B a n k , V ic to r, Io w a ;
C arl T ro u t, a s s is ta n t v ice p re s id e n t, L iv e S to c k N a tio n a l B ank,.
C hicago, Illin o is ; H . L. B ass, e x e c u tiv e v ice p re sid e n t, C ity
S ta te B a n k , O gden, Io w a ; a n d J . R. V e rm az en , cash ie r, C helsea
S a v in g s B a n k , C helsea, Io w a. 24— C h a rle s K e lle y , S ta te B a n k ­
in g D e p a rtm e n t, D es M oines, Io w a ; E . W . Jo n e s, v ice p re s i­
d e n t, Iow a-D es M oines N a tio n a l B a n k & T ru s t C om pany, DesM oines, Io w a ; M e lv in S a ttre , c a sh ie r, O ssian S ta te B a n k , Ossian, Io w a ; E v e r e tt M . G riffith, a s s is ta n t v ice p re sid e n t, Io w a D es M oines N a tio n a l B a n k & T ru s t C om pany, D es M oines, Iow a..
25— R. L. P e n n e , c ash ie r, N a tio n a l B a n k o f W a te rlo o , Io w a ;
H . R. Y oung, c ash ie r, A m e ric a n N a tio n a l B a n k , A rlin g to n ,.
Io w a ; R. R. R ollins, v ice p re s id e n t, B a n k e rs T ru s t C om pany,
D es M oines, Io w a ; V. W. Jo h n so n , p re s id e n t, F i r s t N a tio n a l
B a n k , C e d ar F a lls , Io w a. 26— F re d D. C um m ings, D ro v e rs N a ­
tio n a l B a n k , C hicago, Illin o is ; I r v i n B. B le e k e r, p re sid e n t,
C itiz en s S ta te B a n k , Io w a F a lls, Io w a ; M. R. Seiden, vicep re sid e n t, M e rc h a n ts N a tio n a l B a n k , C e d ar R a p id s, I o w a ;
G eorge W. D e B uhr, m a n a g e r o f K e lse y , Io w a , office o f t h e
Io w a S ta te B a n k of C lark sv ille.


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Federal Reserve Bank of St. Louis

68
• I O W A

T ru st Co., took second and $2, w hile
D ale C henow eth of th e sam e b ank
w on th ird and $1. B a rn h a rt’s tim e
w as 2 m in u tes 50 seconds.
A C entral N ational B ank and T ru st

Co. team com posed of Mrs. Crewe,
A rnold D ressier and F red O w ens, w on
th e check adding relay contest in 2
m in u tes flat.
E ach received a $2
prize. A team contest consists of th ree

ffC o d e r n
f r ie n d ly

f a c ilitie s
f e r v ic e

f o r Io w a

V

N E W S -

R a n k ers

persons each adding 50 checks.
A rt E rickson , B ankers T ru st Co.,
h ab itu al w in n er of the m oney counting
contest, w on first place and $5 for
adding correctly $199.22 in bills and
sm all change in 1 m in u te 59.6 seconds.
S. G. Barnard of th e sam e b ank w on
second prize of $3, and W illiam H ow ­
ard, Iowa-Des M oines N ational B ank
and T ru st Co., took th ird and $2. Two
o th er con testan ts m ade b e tte r tim e
th a n E rickson b u t got w rong totals.
George A nderson, Iowa-Des Moines
N ational B ank and T ru st Co., w on th e
m oney guessing contest and $2.50 by
guessing w ith in 10 of a total of 1,725
pennies in a glass jar.

a l l e y

SAVINGS BANK
D ES

M O IN ES

Officers
F re d e ric k M. M orrison, President
W infield W . Scott, Vice President
J. R. A stley, Cashier
E d w a rd P . K autzky, Assistant Vice President
M arvin L. Payne, Assistant Cashier
F ra n k M. T hom pson, Assistant Cashier

H a u t e if o u r W i s c o n s i n i t e m s

M A X von S C H R A D E R
M r. v o n S ch rad er, c a s h ie r o f th e U n io n B a n k
& T r u s t C om pan y, O ttu m w a , h a s b een n a m ed th e
n ew p r e s id e n t o f th e R o ta ry C lub of th a t c ity .

D IR E C T
to the P O I N T

Iowa News

o f p r o m p t c o lle c tio n !

T h is bank is th e largest in th e W iscon sin -Iow a-D ak ota-M in n esota area . . . servin g
m ore than 500 W isconsin corresp on d en ts — as­
su rin g you p rom p t,efficien t co llec tio n o f W isco n ­
sin ch eck s and drafts. Y our in q u iries are in v ited .

"D irect to th e p o in t ’
because — th e F irst
W isconsin serves as
M ilw a u k e e c o r r e ­
s p o n d e n t f o r over
8 5 p e r cen t o f a ll
W is c o n s in b a n k s!

F i r s t W isco n sin N a tio n a l B a n k
R esou rces o ve r $250,000,000
M E M B E R OF T H E F E D E R A L D E P O S I T I N S U R A N C E C O R P O R A T I O N

A. J. H eim erm an, cashier Stacyville
Savings Bank, announces th a t his
ban k is in process of cleaning up tru s t
certificates in full.
A rthur C. R ye, a ssistan t cashier,
M anly S tate Bank, has been m ade
m anager of th is b a n k ’s P lym outh of­
fice.
H. N. R ein ts, cashier, Iow a State
Bank, Clarksville, has been confined
in a hospital a t W averly for th e past
few w eeks.
YOUR STATE BANKERS ASSO CIATIO N
O FFICIA L SAFE, V A U L T AN D
TIMELOCK EXPERTS

F. E. DA VEN PO RT & CO.
OMAHA

Northwestern Banker

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

June 19 40

69
•
The F ir st Secu rity Bank and Trust
Com pany, C harles City, sta rte d paying

1 p er cent on deposits A pril 1st. M. W.
E llis, president, announced th a t th is
ra te w ill be in effect u n til fu rth e r no­
tice.

Bailey Elected
M eeting in G reene recently, th e B u t­
ler county b a n k ers nam ed O. A. Bailey
of P a rk e rsb u rg as ch airm an for th e
new year.
O ther officers elected included C. V.
Cave of Greene, vice president; P aul
E a rp of A llison, secretary , and George
D eB uhr of Kesley, tre a su re r.

I O W A

N E W S

•

is presid en t of th e Security T ru st and
Savings B ank of Shenandoah; th a t N.
W. P ik e is vice p resident of th e Mapleton T ru st and Savings Bank; th a t H. L.
B ass is executive vice p resident of th e
City State B ank of Ogden, and th a t
Carl Trout, assistan t vice presid en t of
th e Live Stock N ational B ank of Chi­
cago, has a m ighty “good lin e” of his
own.
E. C. Bartik, a ssistan t cashier of the
F irst S tate B ank of B ritt, w as born in
Brezence, w hich is n ear Prague, in
w h at w as form erly Czechoslovakia.

O. W . M adson, cashier of th e Secu­
rity Savings B ank of F arn h am v ille,
Iowa, sta rte d his bank on Ju n e 1, 1934,
w ith $13,000, of w hich $10,000 w as cap­
ital and $3,000 su rp lu s and profits. In
6 y ears the bank has gained $35,000, as
it now has $48,000, m ade up of a capi­
tal of $25,000 and su rplus and profits of
$23,000. In addition to th is th e b ank
has paid th ree cash dividends am o u n t­
ing to $3,500 since 1934.

D avid H. R eim ers, presid en t of th e
Live Stock N ational B ank of Chicago,

With Fed., Chicago
A fter 12 y ears as one of th e efficient
staff of th e Citizens F irs t N ational
Bank, Storm Lake, M att L ynch a n ­
nounces th a t he has resigned to be­
com e a ssista n t exam iner for th e F ed ­
eral R eserve B ank of Chicago. H is te r­
rito ry includes th e states of Iowa, W is­
consin, Illinois, In d ian a and M ichigan.

To Plymouth
A rth u r Rye, w ho w as em ployed at
th e M anly S tate B ank at M anly, has
been tra n sfe rre d to th e F a rm e rs Sav­
ings B ank at P ly m o u th w h ere he w ill
assum e full charge of th e office a t
Plym outh.

County Meeting
H ow ard and C hickasaw county b a n k ­
ers w ere guests recen tly of th e A lta
V ista and E lm a b a n k e rs a t a b an q u et
held a t A lta Vista. Sixty guests w ere
presen t.
T he d in n er w as served a t th e Com­
m u n ity H all and a pro g ram followed.
Joe M enges of A lta Vista, secretary of
th e C hickasaw C ounty B an k ers Asso­
ciation, w as th e to astm aster.
Those in atten d an ce from Cresco in
add itio n to Mr. Elw ood w ere A. J.
Thom son, H. H. W ebber, E. P. F a rn s ­
w o rth , R ay F a rn sw o rth and P aul
F a rn sw o rth .

N EW S A N D VIEW S
(C ontinued from page 14)
stead, and a d irecto r of th e F ed eral R e­
serve B ank of Chicago, in speaking be­
fore th e b a n k e rs’ convention a t F t.
Dodge, said: “N eith er farm ers or a n y ­
one else should be given a subsidized
in te re st rate. R educing in te re st ra te s
to farm ers w ill n o t m ake th em p ro sp er­
ous. F a rm e rs like to do th e ir credit
b u siness w ith th e ir local banks, be­
cause th e re is less re d tap e.”
N ow th a t th e fishing season is here,
w e m u s tn ’t forget th a t E. C. F ish bau gh

MEAT PRODUCTS FROM THE MIDWEST
Are Sold on World-Wide Markets
Meat products, originally produced on Mid­
w estern farms, are served in hom es and
fam ous restaurants throughout the civilized
world.
Breakfast
bacon
from corn-fed
Durocs, is prepared for w ell appointed tables
b y fastidious chefs in Paris. The choice
roasts served d aily in m any London clubs,
com e from M idwestern b a b y b e e v e s . W hile
hotel m enus in Bom bay, P anam a, M anila
and N ew York feature steak s originating in
feed lots of the Corn Belt.

In all this— from the time live stock is grow n
until m eat products reach the ultim ate con­
sum er— the Banks of the M idwest are an
integral part. They provide a m yriad of
financial services w hich sp ee d trade alon g
every ch an n el of distribution.
And the Drovers N ational Bank is a logical
choice a s the C hicago correspondent of
M id-western Banks w h o se custom ers ship
live stock to the Union Stock Yards.

Your Inquiry Is Invited
M e m b e rs , F ed e ra l D e p o s it Insurance Corporation

DROVERS RATIONAL BANN
I DROVERS TRUST & SAVINGS BANK
U N I O N
S T O C K
Y A R D S ,
-----------------------------------------------------------

C H I C A G O

Northwestern Banker

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

June 1940

70

—
has recen tly purch ased a new hom e on
S heridan Drive, in E van sto n , Illinois.
“T here has n ev er y et been a m an in
our h isto ry w ho has had a life of ease
w h o se nam e is w orth rem em bering.”
L. K. H illings, a ssista n t vice p resi­
dent of th e City N ational B ank and
T ru st Com pany of Chicago, super-

A

I OW A

NEWS

—

vised the establishm ent of deh y d ratin g
p lan ts in C entral A m erica before he
en tered the b anking business. The
firm w as located in Los Angeles. W hile
in C entral A m erica, K en got th e yellow
fever and had to re tu rn to th e U nited
States, and w as sick about four m onths
before he fully recovered.
C harles R. G ossett, presid en t of the

NCW Customer Service

Iow a B ankers A ssociation and of th e
S ecurity N ational B ank of Sioux City,
believes th a t banks should w ork out a
pension plan or re tire m e n t incom e for
th e ir em ployes. P lan s w hich are now
in force are available from the associa­
tion office for any b ank w hich w ishes
to take up such a progrm a.
F ran k M. Covert, assista n t cashier
of the D rovers N ational B ank of Chi­
cago, as w ell as th e o ther officers of his
institu tio n , are sending out a folder
“K n ow Y our M oney,” prep ared by th e
U nited States Secret Service.
P o rtra its on bills m ay be identified
as follows:
W ashington on all $1 bills.
Jefferson on all $2 bills.
Lincoln on all $5 bills.
H am ilton on all $10 bills.
Jackson on all $20 bills.
G rant on all $50 bills.
F ra n k lin on all $100 bills.
V. O. F igge, executive vice p resident
of th e D avenport B ank and T ru st Com­
pany, and J. M. H u tchinson , tru s t offi­
cer of th e D avenport B ank and T ru st
Company, w ere hosts to a nu m b er of
th e ir b an k er friends a t th e Tow n Club
du rin g th e D avenport convention.
A m ong those atten d in g th e luncheon
were:

OM ETHING new in th e w ay of additional service to its custom ers has re ­
cen tly been installed by th e M erchants N ational B ank of Cedar Rapids, Iowa,
in th e form of an autom obile depository w indow, details of w hich are pictured
above.
T his Drive-in W icket, as it is som etim es re fe rred to, offers a te lle r’s service
d u rin g re g u la r b an k in g hours. The w indow is constructed of b ullet resistin g
steel and glass. The opening is a tu rn ta b le a rra n g em en t and th e tw o grills on
eith er side are electric pick-up sp eakers th ro u g h w hich th e teller carries on any
necessary co nversation w ith th e custom er.
Officers of th e M erchants N ational re p o rt th a t this new facility is w orking out
v ery well, and has been en th u siastically received by th e ir custom ers.

S

^Ì l ^ n f í n c j
A

WESSLING

PUBLICITY

EZfJLCEl
PROGRAM

BRINGS

DEFINITE.

TANGIBLE

RESULTS

D. R. W ESSLIN G , PRESID ENT

OCVU
Northwestern Banker

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

June 19JO

J. F. B lom quist, F irst N ational Bank,
Chicago; G. D. T hom pson, L iquidation
C orporation, D avenport; M arvin Selden, vice p resid en t of th e M erchants
N ational B ank of Cedar Rapids; B ert
M cCulloch, U nion Bank, D avenport,
Iowa; L. A. K em pf, a ssistan t cashier,
N o rth ern T ru st Com pany of Chicago;
V. It. B artling, a ssistan t cashier of th e
F irs t N ational B ank of Chicago; F ran k
W arner, secretary of th e Iow a B ankers
A ssociation of Des Moines; D. AY. B ates,
su p erin ten d en t of Iow a banks, Des
Moines; B. L. M cKee, vice presid en t
and cashier of th e M uscatine B ank and
T ru st Company; C. R. G ossett, p resi­
den t of th e S ecurity N ational B ank of
Sioux City; \Y. G. C. B agley, S tate
T reasu rer of Iowa, Des Moines; H. N.
B oyson, vice p resid en t of th e M er­
ch ants N ational B ank of Cedar Rapids;
N. B. Shaffer, vice presid en t of th e
C ontinental-Illinois N ational B ank &
T ru st Company, of Chicago; H. Staak,
cashier of th e D avenport B ank & T ru st
Company, of D avenport, and Clifford
T)e P uy, pu b lish er of th e N orthwestern
B anker of Des Moines.
E dgar E. M attson, p resid en t of th e
M idland N ational B ank and T ru st
Com pany of M inneapolis, in a recen t
le tte r to us com m enting on our item s
in th e M ay issue, “Seeing Sights in
th e S outhland,” said:

71

*
“I hav e re a d th e M ay issue of th e
N orthwestern B anker w ith m ore th a n

o rd in a ry in te re st because of th e in te r­
estin g article on th e w an d erin g s of th e
De P u y fam ily.
“Mrs. M attson and th e w rite r m ade
alm ost th e identical trip , v isitin g p ra c ­
tically all of th e places you m en tio n
ex cept tho se located in T ennessee and
th e Carolinas. T hese places we have
visited on p revious trip s.
“W e ra n into a q u ain t little place
so u th of N atchez, nam ely, St. F rancisville, w h ere we stayed over n ig h t in a
cabin as you did on th e Suw anee R iver,
and discovered th a t th is w as th e ab id ­
ing place of A udubon, w ho stu d ied n a ­
tu re and ta u g h t dancing in th is place.
P e rh a p s you w ill rem em b er it as being
located n e a r one of th e o u tstan d in g
so u th e rn places, not a t N atchez b u t
n e a r St. F rancisville, kn o w n as Afton.
“W e w ere v ery m uch am used to
le a rn of th e riv a lry betw een th e tw o
w om en factions in N atchez.
“You did n o t m en tio n th e razorbacks. Did you not en co u n ter th em
b etw een Mobile and T am pa p a rtic u ­
larly? Did you observe th e w a rn in g to
traffic th a t dom estic anim als w ere a t
large?
“I agree w ith you th a t one can go
long d istances in F lo rid a before en ­
c o u n terin g signs to guide or re a ssu re
you th a t you are on th e rig h t ro ad .”

I O W A

NEWS

*

E. Scott. P rio r to th a t tim e he had
experience as teller, a ssistan t cashier
an d cashier in banks a t L ittle Rock
an d Rock Rapids. He has lived all
his life in th is section of th e state.

Quimby Office
T he C entral T ru st and Savings Bank,
Cherokee, opened its b ank office in
Quim by recently. H en ry Olson of
C herokee w ill be in charge, w ith th e
b an king q u a rte rs in th e form er Quim ­
by S tate B ank building.
Mr. Olson operated a b an k in South
D akota a t one tim e, b u t for a nu m b er
of y ears now has been a field m an for
th e M etropolitan Life In su ran ce Com­
pany, and for several y ears w as w ith
th e F ed eral L and Bank.

To Atlantic
C. D. E m m ert of Red Oak, a form er
Avoca resident, has accepted a position
as cashier of th e A tlantic S tate Bank,
A tlantic. A t p resen t Mr. E m m e rt is
exam iner for th e Iow a d ep artm en t of
banking, intended to resign in May to
take over his new w ork at th e A tlantic
b an k on Ju n e 1st.

Named on Board
F re d C. Robison, Des M oines dru g ­
gist, has p u rchased th e stock of Jo h n
P. W allace in th e F irs t F ed eral State
Bank, and w ill succeed Mr. W allace
as a m em ber of th e b a n k ’s board of
directors.
R obison is vice p resid en t of McNerney D rug Stores and m anager of th e

Nashua Election
T he follow ing officers of th e F irs t
N ash u a S tate B ank w ere elected a t th e
a n n u a l m eeting: P re sid e n t and cash­
ier, A. L. Kout; vice presid en t, G. E.
E llison; directors, J. F. N afus, N orton
H. Bloom, and E. W. Staley.

School Is "Out"
A. T. B. school w as “o u t” in K eokuk
sev eral w eeks ago, b u t th e stu d en ts
(not tru e to form ), liked to go to school
so w ell on M onday n ig h ts th a t th ey
organized a “B anking F o ru m ,” c a rry ­
ing on a t th e sam e tim e and place.
M inus a teacher, a different class m em ­
b e r tak es charge at th ese m eetings,
leading th e discussions, w h ich are on
cases ta k e n from P a to n ’s Digest. A ny­
one in te re ste d in b an k in g is invited,
an d quite an en th u siastic ro u n d table
h as developed at th ese M onday n ig h t
sessions.

Elected Cashier
P hillip Odens w as elected cashier of
th e Sibley S tate B ank to succeed M ar­
v in W. L eritz a t th e m eeting of th e
board of directors. Mr. Odens cam e
to th e Sibley S tate B ank in 1933 as as­
sista n t cashier, serv in g u n d e r H arold

FRIENDLY, INDIVIDUAL SERVICE
FOR OUT-OF-TOWN BANKS
The correspondent facilities of this half-century-old insti­
tution are designed to meet the needs of bankers with all
the efficiency and individual attention they require. As a
result, an increasing number of out-of-town banks are
using the services of The Northern Trust Company. Your
inquiries are cordially invited. You will appreciate the
friendly helpfulness which characterizes a connection here.

THE NO RTH ERN
TRUST COMPANY
5 0 S O U T H LA SALLE S T R E E T , C H I C A G O
Member Federal Deposit Insurance Corporation

Northwestern Banker

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

June 1940

72

- •
M cN erney store a t T w enty-fifth stre e t
and U n iv ersity avenue. H e has been
in business in th a t location for the
last 21 years.
G ran t M cP herrin, ch airm an of the
board of th e bank, said W allace re ­
signed from th e board upon selling
his stock.

New Officers
T he W in n esh iek C ounty B ankers
A ssociation elected th e follow ing offi­
cers for th e com ing year: P resid en t,
W. P. R onan of Decorah; vice p resi­
dent, Dr. J. P. Malloy, Castalia; secre­
tary , A drian Sm ith, Calm ar; tre a su re r,
R. W. R a ste r of Decorah.

New Quarters
The M ortgage In v e stm e n t C orpora­
tion, fo rm erly located a t 825 F lem ing

I O W A

NEWS

B uilding, Des Moines, has m oved into
la rg e r q u arters a t 1021 F lem ing B uild­
ing.
The corporation w as organized in
1937 for th e purpose of giving federal
housing ad m in istratio n service in
T exas and Iowa. T he corporation has
loans on its books from 74 Iow a coun­
ties and has closed loans in excess of
$2,700,000.
T he Des Moines office is m anaged by
E. R. H aley, vice p resid en t and tre a s­
u rer. W illiam S. B radley, now w ith
th e Dallas, Texas, office, is president.

iowa "Schools" to Start
It w ill be recalled th a t du rin g this
p ast y ear late into th e sum m er of
1939, th ree “F arm A ppraisal Schools”
w ere held in th ree of th e groups

A City which enjoys the nat­
ural advantages of a cen­
tral location, with excellent
mail schedules both by rail
and air. A Bank equipped
to make full use of these
in co nnectio n with your
correspondent b u sin e ss.

F I R S T N A T I O N A L B A NK
IN

Northwestern Banker

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

ST.

June 19k0

•

LOUIS

(G roups 3, 6 and 11), and th a t it w as
fu rth e r planned last fall to hold a
F arm A ppraisal School in each of th e
o ther eight groups b u t ow ing to u n ­
avoidable circum stances those schools
had to be called off early in th e fall
by th e college. Y our A g ricu ltu ral Com­
m ittee and officers, collaborating w ith
th e E x tension D ivision of th e Iow a
S tate College of A griculture at Ames,
has now com pleted th e schedule of
these com ing eight F arm A ppraisal
Schools, to be held in th e groups and
on th e dates designated below:
First Week
Group
1— Le M ars, Tuesday, Ju n e 4
2— L iverm ore, W ednesday, Ju n e 5
4— A rlington, T hursday, Ju n e 6
7— L aP o rte City, F riday, Ju n e 7
Second Week
Group
8— A nam osa, Tuesday, Ju n e 11
10—Albia, W ednesday, Ju n e 12
9— Leon, T hursday, Ju n e 13
5— H arlan, F riday, Ju n e 14
In due tim e a program of each F arm
A ppraisal School w ill be sen t direct
to th e banks in each of th e groups.
Local ban k ers cooperating w ith th e ir
local county agents have selected a
local farm w hich w ill be used as a
“specim en” for th e school. T he E x ­
tension Division, headed by R. K.
Bliss, of th e A g ricu ltu ral College a t
Ames, has assigned R obert W. W ilcox,
assistan t extension econom ist, to haved irect charge of these F a rm A ppraisal
Schools upon behalf of th e Ames col­
lege. P aul B urson and H erb ert F olken
w ill be am ong oth ers w ho w ill atte n d
each of th e F a rm A ppraisal Schools
as instru cto rs. Mr. Folken, it w ill be
recalled, w as an in stru c to r a t th e
previous schools. It is an ticipated th a t
W. G. M urray and Roy W. Simonson,,
also in stru c to rs a t th e previous F arm
A ppraisal Schools of last sum m er, w ill
also be am ong th e in stru c to rs for a
portion at least of the com ing schools.
The Iow a B ankers A ssociation is th e
first State B ankers A ssociation in the
U nited States to u n d ertak e th is agri­
cu ltu ral project. These Iow a schools
have elicited m any in q u iries from v a­
rious sections of th e nation. It w ill be
recalled these F a rm A ppraisal Schools
s ta rt w ith a luncheon a t noon. Fol­
low ing th e luncheon a sh o rt program
of in stru ctio n to th e “stu d e n ts” is
given. T hen th e “stu d e n ts” get in
th e ir autom obiles and leave for th e
p articu lar farm th a t has been p rev i­
ously selected and p latted according to
its various fields, its topography, and
its buildings, etc. A ctual soil tests are
m ade in th e various fields u n d er th e
guidance of th e above nam ed in struc-

73

•
to rs of th e S tate A g ricu ltu ral College
and w ho are all soil experts. On or
about 5:00 or 5:30 P. M., th e “stu d e n ts”
go back to tow n w h ere th ey have an
h o u r or so p re p a ra to ry to th e evening
dinner. A fter th e evening m eal th e
actu al class w o rk itself com m ences.
T hese evening classes have n ev er
failed to produce a m ost lively in te r­
est w hen th e actu al ap p raisals of each
of th e “stu d e n ts” is finally placed upon
a blackboard because each “stu d e n t”
is in te re ste d in know ing how his ap ­
p ra ise m e n t com pares w ith th a t of his
b a n k e r n eighbor or o th er b an k ers in
h is group.
The m em bers of th e A g ricu ltu ral
C om m ittee of th e I. B. A. are as fol­
lows:
■Group
2— K. J. M cDonald, E sth erv ille,
Chairm an

8— L. D. M urfield, A nam osa
3— C. S. Rye, N o rth wood
4— H. T. Orr, M onona
5— J. H. P eterm an , C larinda
7—H. N. Boyson, Cedar Rapids
11—H. Lee H uston, C olum bus Ju n ctio n
6— O. L. K arsten, N ew ton
1-—R. C. M cK inney, C leghorn
9— Wm. Zunkel, Leon
10—L. H. V ardam an, K eosauqua
C. R. Gossett, Sioux City,
P re sid e n t I. B. A. Ex-Officio.

I O W A

NEWS

• -

picnic at th e H ydro E lectric p ark re ­
cently. T he group, to th e n um ber of
40, assem bled in tim e to have a ball
gam e before dinner. T here w as not
tim e, how ever, to decide w ho w on for
th e food, a chicken dinner, cam e a t the
rig h t m om ent to forestall an y a rg u ­
m ents over th e score. D uring th e
evening bingo w as played.

Election
S tockholders of th e Mingo T ru st and
Savings B ank elected W. J. Gannon

p resident at th e ir ann u al m eeting held
recently. O ther officers nam ed are
C. W. K im berley, vice president; A lbert
Toms, cashier; Florence F rey, a ssist­
a n t cashier; Grace K im berley, Jam es
H anson and L ars H anson, directors.

President Dies
Morse Kehoe, 72, presid en t of th e
Silver City State B ank for 18 years,
died at his hom e recently a fte r an
illness of over a year. Kehoe w as
forced to re tire from th e b an k in 1939

Do You Need Information
About Restrictions on
Foreign Exchange and Trade ?
T h e U nited States has only one kind of dollar. But
England has both an official and a free pound for
se ttle m en t of foreign obligations. G e rm a n y has

In Iowa Falls
Miss M argaret Q uinn of N orthfield,
M innesota, has accepted a position as
bo o k k eep er and te lle r a t th e Citizens
S tate B ank, Iow a Falls. Miss Ivadel
Cleal, fo rm erly a teller, has been elec­
te d an a ssista n t cashier.

Annual Meeting
T he an n u al m eeting of th e stockR olders of th e U nion S tate B ank w as
h e ld recen tly in M onona, w ith about
th ir ty stockholders in attendance. A
su m m a ry of th e p ast y e a r’s business,
w ith an ex p lan atio n of th e b a n k ’s
g en eral policy, w as ren d ered by th e
officers, and th e detailed re p o rt of
th e cashier show ed a steadily in creas­
in g volum e of business for th is in sti­
tu tio n .
T he old board of directors, consist­
in g of D. W. M eier, H. H. Sm ith, H. T.
O rr, K. W. Rash, E d w ard W irk ler
an d P. H. H um phrey, w ere u n a n i­
m ously re-elected and a t th e a n n u al
b o ard m eeting w hich follow ed all of
th e officers w ere re-elected to th e posi­
tio n s now held.

Hold Picnic
T he staff of th e F o rt Dodge S tate
B an k and th e ir fam ilies enjoyed a

long had a variety of m arks. C an ad a—indeed the
w hole B ritish E m p ire — has exchange controls.
Italy m anages its exchange. L ikew ise F ra n ce .
L a tin -A m erica n c o u n tries have th e ir controls.
This B ank has cu rren t inform ation about foreign
exchange restrictions, about com m odity quotas,
about im port and export regulations—which are
constantly changing. If these affect your custom ­
ers, feel free to consult our Foreign D epartm ent.

CONTINENTAL ILLINOIS

N ational Bank
a nd Trust Company
OF C H IC A G O

Member Federal Deposit Insurance Corporation

Northwestern Banker

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

June 19JO

74

*
because of ill health . H e w as cashier
of th e b an k for 14 y e a rs p rio r to be­
com ing president.
Kehoe w as a p ro m in en t Mason.
S urviving are one son, Dr. H orace
Kehoe of G ladbrook, an d one dau g h ­
ter, Mrs. G rover Goos of Silver City.
Mrs. Kehoe died in 1933.

Primary Banking Duty
T he first d u ty of an y b an k is to
fulfill its com m unity responsibilities,
H en ry W. K oeneke, second vice p re si­

IOW A

NEWS

d en t of th e A m erican B ankers Asso­
ciation, asserted in an address before
a m eeting of th e O klahom a B ankers
A ssociation.
“G ranting th a t our A m erican sys­
tem of g overnm ent is founded upon
local autonom y and local developm ent,
and th a t th e local b an k er is th e center
of th is local developm ent, th e first
d u ty of any b an k is to th e in terests of
its com m unity,” Mr. K oeneke declared.
“T his responsibility to our com­
m u n ities im poses upon us several spe­

F o r M ore Than
50 Years
M a n y of t h e o ld e s t a n d s tr o n g e s t
b a n k s a n d t r u s t c o m p a n i e s in th e
U n ite d States m a in ta in c o rre s p o n d e n t
re la tio n s h ip s w ith C e n tra l H a n o v e r.
F o r e x a m p le , 159 A m e ric a n h a n k s
hav e b e e n

c o rre s p o n d e n ts c o n tin u ­

o u sly fo r m o re th a n h a lf a c e n tu ry .

C E N T R A L

*

H A N O V E R

BANK A N D TR U ST CO M PA N Y
NEW YORK

cific obligations,” he asserted. “F irst,
we m u st co n stan tly im prove th e qual­
ity of our m anagem ent, and second,
we have an obligation to learn all w e
can about our com m unities if w e are
to serve th em effectively.
“No b ank can fulfill its com m unity
obligations unless it know s local con­
ditions and production possibilities of
its te rrito ry . No b ank can discharge
its obligations fully by w aiting for
custom ers to come to th e bank. T he
officers m u st get out into th e trad e to
uncover credit needs and credit op­
p o rtunities.
“T hird, banks have an obligation to
stu d y th e ir com petition and m eet it
in a realistic w ay,” Mr. K oeneke de­
clared. “No outside agency can ta k e
th e place of th e local b ank in satis­
factory service to th e local com m unity.
If we are to re ta in th e business w e
have an d recover th e business w e have
lost we shall have to do so th ro u g h
aggressive solicitation and adequate
service rates w hich w ill be profitable
to th e borrow er as w ell as ourselves.
“F o u rth , we have an obligation to
adapt ourselves to th e change of
tim es,” Mr. K oeneke asserted. “T he
public dem ands m ore services from
banks and is w illing to pay for it.
If we are to serve th e increased de­
m ands of our com m unities and hold
our places as com m unity in stitu tio n s
we m u st ad ap t and p u t into use such
of th e new b an king services th a t hav e
been evolved in th e p ast few y e a rs
as fit into our com m unities and h av e
been found to be sound b anking p rac­
tice. T he A m erican B an kers Associa­
tion stands ready to lend assistance in
this p articular.
“F ifth, it should be pointed out th a t
w hile our responsibilities are p rim a r­
ily to our local com m unities, w e also
have an obligation to th e nation as
a w hole and to th e banking system a s
a w hole,” Mr. K oeneke declared. “In
these m odern days, m oney and c red it
are n ational com m odities—national in
th e ir flow and effect. W e shall not
discharge our com m unity obligations
unless we also do our p a rt to p reserv e
and im prove th e en tire b anking sys­
tem .”

Sponsor Contest
MEMBER FEDERAL DEPOSI T I NSU RA NC E CORP ORATI ON

Northwestern Banker

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

June 1940

Lyon county 4-H Club m em bers w ill
again have an o p p o rtu n ity to p artici­
pate in th e In te rn a tio n a l 4-H Club
contest sponsored by th e Rock Rapids
S tate B ank in cooperation w ith th e
extension service, m akin g th e fo u rth
y ear for such a contest.
T he 4-H Club boy sub m ittin g th e
best all-around club record for 1940
w ill be aw arded a free trip to th e In-

75

•
te rn a tio n a l L ivestock Show in Chicago
th is fall. L ast y e a r th e contest w as
w on by S tanley P o rte r of Inwood.
F o rre s t K o h rt of Rock R apids received
th e trip in 1938 and G erald M unns,
also of Rock R apids, received it in
1937.
A ny 4-H Club boy over 15 y ears of
age m ay e n te r th e contest. Com plete
l’ecords, including those k e p t in th e
Iow a H om e R ecord book, are due in
th e farm b u re a u office n o t la te r th a n
O ctober 1, 1940. Judges for th e selec­
tio n of th e w in n e r w ill be nam ed th is
fall.

I O W A

NEWS

•

can be enhanced only by tak in g less
of th e profit in taxes.”
M eanw hile, th e uncontrolled pow er
to ta x can d estroy our liberties ju st
as effectively as u n controlled deficit
spending.

Banking Evolution
In a recen t talk, Dr. P au l F. Cadm an, econom ist of th e A m erican B ank­
ers A ssociation, observed th a t banking
h as “o p p o rtunities to re n d e r perh ap s
th e g reatest service in its h isto ry in
th e creation an d conservation of th e

individual and social values of our
econom ic life.”
Today th e re can be no question b u t
th a t b an king is broadening its service
to th e people of th is country. The
b an k er fully realizes th e necessity of
giving th e public a b e tte r and m ore
accurate u n d erstan d in g of b a n k in g ’s
function. H e is fran k ly out to “sell”
b an king service, to th e benefit of th e
com m unity, th e borrow er, th e deposi­
to r and th e bank. M oney in a b a n k ’s
v au lt does little good, and he is as
eager as anyone to p u t it productively
to w ork.

Power to Destroy
D aniel W e b ste r’s w arn in g th a t “th e
p o w er to ta x is th e pow er to destro y ,”
is loom ing ever la rg e r in th e m inds of
th in k in g citizens.
S everal sta te leg islatu res have adop­
te d reso lu tio n s u rg in g th a t a lim it of
25 p er cen t be placed on F ed eral in ­
com e, gift and in h e rita n c e taxes.
R hode Isla n d ’s resolution, w hich w as
orig in ally adopted by th e A m erican
T ax p ay ers A ssociation, includes th e
proviso th a t Congress could lift th e
lim it in case of w ar.
A t p re se n t C ongress m ay levy and
collect up to 79 p er cen t of incom es
of in dividuals an d corporations. E v ­
e ry effort has been m ade to m ake peo­
ple believe th a t h igh tax es on “big
b u sin e ss” is a good w ay to “soak th e
ric h .”
In d u stry m u st pass tax es on to th e
consum er. W hen tax es pass beyond
reaso n ab le lim its, costs rise; em ploy­
m e n t falls. E xcessive tax es on in ­
d iv id u als force individual w ealth to
seek refuge in nonproductive, tax-free,
low -interest b earin g g o v ern m en t se­
cu rities. If th e to tal incom e of all
th o se receiving m ore th a n $100,000 in
1938 w ere confiscated by ta x a tio n —
e v e ry cent of it—it w ould p ay th e cost
of th e g o v ern m en t for less th a n 15
days! A nd one of th e g re a te st dangers
in h e re n t in h ig h F ed eral taxes is th e
ten d en cy to u n d erm in e states rig h ts
b y seizure of incom e th a t should be­
long to th e states.
Aside from ev ery o th er considera­
tion, excessive tax es defeat th e v ery
p u rp o se for w hich tax es are levied—
rev en u e. I t is a pro v en fact, as W al­
te r L ip p m an n has pointed out, th a t
“low er (tax) rates, by m aking p riv ate
in v e stm e n t profitable, w ill ev en tu ally
y ield a larg er rev en u e out of a larg er
n atio n al incom e by rev iv in g in v est­
m ent. . . . T he n atio n al incom e can
be in creased only by a rev iv al of privv ate in v estm en t, an d p riv ate in v e st­
m e n t can be reviv ed only b y en h an c­
ing p riv ate profit, and p riv a te profit

< 7 7 /?

im

/ it e &

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dene
in if i f d i/in fo iln
6

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MEMBER

FEDERAL

D EPO SIT

i/

IN SU R A N C E

CO R PO R A T IO N

Northwestern Banker

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

June 19^0

76

—•
T his explains the trem endous activ ­
ity of b an k s a t th e p re se n t tim e in
seeking to increase an d broaden th e ir
business. B anks are ad v ertisin g m ore
th a n ever before, and th e ir ad v ertisin g
carries a new note of understan d in g .
E v e ry effort is m ade to a ttra c t th e
sm all borrow er, no less th a n th e large.
A nd th e little business w ith a legiti­
m ate need and adequate credit sta n d ­
ing, in te re sts th e b an k er as m uch as
the big business.
T hus b an k in g ’s role in th e economic
life of th e n atio n grow s steadily great-

IOWA

NEWS

•

er. It is a role w hose im portance can
h ard ly be exaggerated. A m erican p ri­
vate banking is doing a v ital job th a t
helps and affects us all.

Mid-Winter Conference
The tw enty-second an n u al MidW in ter T ru st Conference of th e T ru st
D ivision of th e A m erican B ankers As­
sociation w ill be held in New Y ork
City on F e b ru a ry 4-6, 1941, it is an ­
nounced by R oland E. Clark, p resi­
den t of the A. B. A. T ru st Division,

Federal Home Loan Bank of Des Moines
DES MOINES, IOWA
STATEMENT OF CONDITION APRIL 30, 1940
R ESO U R C ES
A d v a n ce s to M em b ers.......................................................................
$11,680,951.50
U . S. G overn m en t O b lig a tio n s and S ecu rities G uaranteed by U . S ................
1,367,000.00
A ccru ed In te r e st R e c e iv a b le ..................................................................................................
30,615.18
D eferr ed C harges .....................................................................................................................
12,603.68
C ash ................................................................................................................................................ 6,091,312.23
$19,182,482.59
L IA B IL IT IE S
G overn m en t S tock S u b s c r ip tio n .....................................
M em b ers’ S tock S u b s c r ip tio n ............................................
^ D ebentu res O u tsta n d in g ...................................................
P r em iu m s on D e b e n tu r e s ...................................................
D ep o sits ......................................................................................
A ccru ed In te r e st P a y a b le ...................................................
S u rp lu s :
R eserves .............................................................................
U n d ivid ed P r o fits ..........................................................

$

$453,025.78
244,980.86

7.394.900.00
2.467.200.00
7,500,000.00
2,187.50
1,084,560.68
35,627.77
698,006.64

$19,182,482.59
I a rticip a tio n in $48,500,000 con solid ated Federal H om e L oan B ank d eb en tures o u t­
sta n d in g , w hich are th e jo in t and sev era l o b lig a tio n s of th e tw e lv e Federal Hom e Loan
B an k s.

w ho is vice p resid en t of th e N ational
B ank of Commerce of P ortland, Maine.
The an n u al banquet, w hich w ill b rin g
the conference to a close, w ill be held
on th e evening of T hursday, F e b ru a ry
6. Both conference and banquet will
be held at th e W aldorf-A storia.

Concealment Not Justified
W hen a charge w as m ade in th e
Senate th a t the ru ra l electrification
cooperatives w ere not earn in g th e ir
in te re st charges, th e R ural Electrifica­
tion A dm inistration, w hich finances
th e cooperatives, replied th a t in form a­
tion concerning th e ir fiscal condition
could not be m ade public.
T he REA urged th a t disclosure of
the facts w ould enable “hostile in te r­
ests” to use th e records of th e “less
developed or less successful sy stem s”
as proof of failure.
W ithholding th e facts concerning
publicly financed en terp rises can be
justified only by exceptional circum ­
stances, says the St. P aul P ioneer
P ress in com m enting on this situation,
and adds:
“The m ere fact th a t disclosure of
records m ight lead to em b arrassin g
criticism , some of w hich m ight even
be u n fair criticism , is not sufficient
reason for refusing to m ake rep o rts
on such en terp rises as these. The
policy of concealm ent too easily be­
comes a m ask for inefficiency and
w aste of public funds, to be counte­
nanced for such cause. The REA
should spread its records on the table
and allow th e public, w ho is paving
th e bill, to decide w h eth er criticism is
in ord er.”—Spokane, W ash., Spokes­
man-Review.

F A R M an d HOME

Tough Guy

F u ll-P aid S h ares

New maid: “T h ere’s a m an outside,
sir, w ho w ants to see you about paying
a bill.”
Man of th e house: “W hat does he
look like?”
New maid: ‘He looks like you b e tte r
pay it!”

G S ie J l e x ^ a l 9 n o e 4 , t m

e n tl

F arm and H om e F u ll-P a id Shares are legal
in vestm en ts for banks, trust co m p a n ies, in su r­
ance com p an ies, gu ard ians, fidu ciaries and
tru stees of trust fun ds. S a fety of p rin cip a l is
in sured up to $5,000 b y a p erm a n en t U. S.
G overn m ent agency.

A S S ET S

O V ER

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

P ayin g h ig h e st d iv id en d s co n sisten t w ith
safety. C urrent d ivid en d rate 3 x/i p er cent per
annum . G et fu ll d etails.

A ssets In E xcess o f $ 1 7 ,0 0 0 ,0 0 0 .0 0

Farm and Home Savings and Loan Association
In corp orated in 1893 . . . M em ber F ed eral H om e L oan B an k S y ste m
Nevada, Mo.

rEDERALSavings
AND

LOAN

OF D E S M O IN E S
216 8lh Street

Northwestern Banker

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

June 19Ì0

ASSOCIATION

Phone 4-5324

The Seven Keys
to

Public Relations
By Gerald S. Beskin

GERALD

S. B E S K I N

Y TOPIC is “W ho P ays for P u b ­
lic R elations?” L e t’s n o t b eat
about th e bu sh . . . let’s settle
th e “w ho p a y s” angle rig h t and now.
Y ou pay for Public R elations if you
ignore th em . . . th e y pay for th e m ­
selves over and over again if you use
th em in tellig ently! Your organization
is dedicated to m eticulously safeg u ard ­
ing and m u ltip ly in g y o u r sh areh o ld ers’
p ennies . . . b u t w h a t hap p en s to yo u r
ow n p ennies w h en you ignore th e
pow er of P ublic Relations?
W h at is public R elations? “Public
R elations is th e science of attitu d e
control, th e m eans by w hich every
p h ase of h u m an endeavor is keyed to
m a n ’s w an ts and b ro u g h t to and su s­
tain ed in public favor.”
H ow do you go about it? W h at tools
do you use in conducting profitable
Public Relations? Briefly, th ese tools
are seven in n u m b er at th e p re se n t
tim e. I say “at th e p re se n t tim e” be­
cause, being dynam ic, new tools are
co n stan tly being in v en ted to b e tte r
serve th e Public R elations practitio n er.
A Good Service! It goes w ith o u t say­
ing, th e B uilding, Savings and Loan
business stru c tu re is founded en tirely
upon service! T he finer th a t service,
th e firm er th e foundation upon w hich
to build a successful en terp rise. The
v ery h e a rt of an y Building, Savings
and Loan Public R elations p ro g ram is
th e k ind of tre a tm e n t given to y o u r
savings or b orrow ing custom ers and
tlieir dollars!
Your prospective custom ers w ant to
hav e definitely proved to th e ir en tire
satisfaction, ju st th re e th in g s concern­
ing y o u r service: 1 . . . W h at w ill it

M


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

do for me? 2 . . . How long w ill th a t
doing endure? 3 . . . H ow m uch w ill
th a t doing cost? T his la tte r point is
v e ry im p o rtan t to th e borrow er! This
tool of service and th e o th er Public
R elations tools to follow w ill be m ore
specifically covered by a series of sob­
erly reflective questions w hich our or­
ganization has assem bled into a ra th e r
inclusive and th erefo re intensive ques­
tio n n aire created especially to ch art
th e successful Public R elations course
of any Savings, B uilding and L oan
organization.
It m u st be said of your service, how ­
ever, if it is n ot entirely up to standard,
you’re not read y to consider any o th er
Public R elations procedure u n til this
first m a tte r is w hipped into shape. To
ignore this, w ill do your organization
m ore h arm th a n good . . . h arm th a t
w ill take m ore tim e, trouble and m oney
to correct later th a n to ad ju st now , at
th e outset!
Careful C ustom er A ttitu d e. T his is
a m anagem ent and personnel m atter.
T his involves th e m an n er in w hich you
re n d er th e hig h est type service of
w hich y o u r organization is capable!
If th e re be several organizations offer­
ing th e sam e com plete and efficient
service you do, th e custom er w ill deal
w ith th e A ssociation th a t le t’s him
know his business is appreciated and
valued. This, it should be m entioned,
concerns a cordial, sm iling, friendly,
helpful a ttitu d e . . . from th e top exec­
u tive dow n to th e am bitious office boy.
Y our organization is no m ore frien d ­
ly and helpful th a n y o u r sourest em ­
ployee. T his is th e Savings and Loan
application of th e old saw, “A chain is
no stro n g er th a n its w eakest link!”
E m ployee Satisfaction! I t is only
half an em ployee w ho gets his entire
com pensation in dollars! T he best,
m ost loyal and th u s th e m ost produc­

tive em ployee is one w ho derives pleas­
u re plus profit from serving y o u r or­
ganization. Em ployee satisfaction goes
beyond th e confines of y o u r office, for
it is tru e, m uch job dissatisfaction be­
gins at hom e . . . originating, in m any
cases, w ith those dependents who have
a definite equity in th e b read w in n er’s
pay check w ith o u t ever com ing near
your place of business!
These em ployes and dependents,
w ith pro p er Public R elations proced­
ure, can becom e one of your greatest
financial assets. T his is an individual
problem w ith each organization and
cannot be solved by th e clock!
A Sense of the Dramatic! T his is a
tool-m aker’s tool, in th a t it m akes
possible th e tw o tools to follow . . .
A d vertisin g and P ublicity. H ere is
w here skillful show m anship comes in ­
to play. I t involves, am ong o ther
things, personal conduct of your exec­
utives . . . n ot only w h a t th ey do in
th e public eye, b u t how th ey do it! It
is a com bination of com m on and u n ­
com m on sense capable of judging w hat
appeals are m ost effective in reaching
your public . . . I t concerns itself w ith
w eighing ideas and picking, w ith th a t
infallible dram atic sense, ideas w hich
grip, not grope.
I t is quite a p p aren t th a t th e first
four tools, “A Good Service, Careful
C ustom er A ttitude, Em ploye Satisfac­
tion and a Sense of th e D ram atic”, are
all internal factors th a t confine th em ­
selves to operations behind th e doors
of your establishm ent. The next tools
deal w ith external m atters th a t take
place outside of your organization.
A dvertising! In using th is tool, a
Savings, B uilding and Loan Associa­
tion can eith er m ake a m int or lose its
s h i r t . . . depending upon how w ell th is
tool ties in w ith usemf th e o ther Public
R elations tools.

78

• SAVI N GS
A dvertisin g cannot do th e job alone.
A dvertising has n e v e r done th e com ­
plete job alone. I t ’s tru e, th e old,
fam iliar, th re e m onkies, “See no evil,
h e a r no evil and speak no evil” have

EX TRA SA FET Y
LIBERAL RETURN
for
INVESTM ENT
A CCO U N TS
W rite f o r interesting
f a c t s and figures.

POLK COUNTY
FEDERAL
Savings & Loan Assn.
Assets $ 1 , 5 0 0 , 0 0 0 .0 0
511 Seventh St.
DES MOINES
M em b er F ed era l H om e Loan B ank S y s te m

HChME

_ J]
FEDERAL SAVINGS
A N D L O A N A SSO C IA T IO N
OF DES M O I N E S
— ou r F ed era lly In su red u p to
$ 5 ,0 0 0 savin gs a ccou n ts are
th e so lu tio n to you r in v e st­
m en t and trust p ro b lem s.
C urrent d ivid en d 4 p er cen t.

Statement on request.
904 Grand Avenue
Des Moines, Iowa

INSURED SAFETY
F a r Y our S av in g s an d In v e stm e n t F u n d s

3 % Current Dividend Rate

3%

I t W ill P a y You to G et O u r L ite ra tu re
B efore In v e stin g
W RIT E FOR BOOKLET

■in

a ITO
M in n eap o lis, M in n eso ta

‘T I M E IS K I N D TO T H E T H R I F T Y ’

Northwestern Banker

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

June 1940

AND

LOAN

been m odernized to m eet th e changing
schem e of things . . . now th ey are,
“See e v ery th in g h e a r every th in g and
sh o u t like hell!” . . . b u t even th is is
not enough . . . th e Savings and Loan
organization has to be som ething, too
. . . it has to be m ade to stan d for
som ething in th e public m ind th ro u g h
in ten siv e use of all Public R elations
tools if it is to succeed in fullest m eas­
ure!
A ny schoolboy w ho has read an ad­
v ertisem en t or tw o can w rite one . . .
b u t m erely p u ttin g w ords and pictures
on p ap er is not enough. E v aluation of
ideas, evaluation of media, evaluation
of tim eliness, evaluation of cost against
business potential are am ong th e m ore
im p o rtan t background factors w hich
call for a high degree of skill and ex­
perience w hich in tu rn reg ulate effec­
tiven ess of yo u r advertisin g message.
Use of these points spells th e differ­
ence betw een profitable and profitless
advertising. E ven ad v ertisin g experts
can ’t tell you p e rfe c tly , w hich in a
series of four ads, for exam ple, will
pu ll excellent, m ediocre or poor re ­
tu rn s! T esting is th e im p o rtan t th in g
here.
P ublicity! H ere’s th e stuff th a t new s
is m ade of. This h a rk s back to a Sense
of th e D ram atic. If your executives
are capable of m aking new s, th ro u g h
p ersonal or civic activ ity yo u r o rgan­
ization w ill get all th e publicity it
w ants!
Radio new s com m entators,
n ew sp aper and m agazine editors lite r­
ally cry for th is so rt of th in g . . . and
all it costs is a little tim e and ingenuity.
A good Public R elations counsellor
can help a lot in this direction. F rie n d ­
ly connections w ith th e editorial and
m an ag erial staffs of radio stations,
n ew spapers and m agazines is not am iss
here!
You m ake possible th e building of
hom es. You open up jobs for th e elec­
trician, th e plum ber, th e contractor,
th e m ason, th e landscape g ard n er and
all th e o th er craftsm en in th e building
trade. T hey realize th a t a new hom e
in an y neighborhood is th e focal point
of in te re st (how m any of you sneak
into new hom es u n d er construction in
yo u r neighborhood u n d er th e cover of
dusk?) and these craftsm en p u t th e ir
signs out in fro n t of th e new building
th a t read, “E lectrical w ork being done
by G erald Zilch and Com pany” and so
on for th e o th er craftsm en.
W h at does th e organization w hich
m ade th e en tire p roject possible do?
N othing! W h at is m ore laudable th a n
sup p ly ing a natio n w ith homes? W hy
not a sign, w ith perm ission of th e ow n­
er, of course, “This C onstruction P ro j­

*
ect F inanced T h rough a B uilding and
L oan A ssociation”?
Public Speaking! R ightfully, this is
an au x iliary to nu m b er six dealing
w ith Publicity, b u t it’s so im p o rtan t,
if done well, it deserves individual
consideration.
W h at is m ore pow erful th a n th e
spoken w ord at th e pro p er tim e and

T r u s t O f f i c e r s who want
a safe, flexible investment with
an attractive return, will find
it at the First Federal. The
current rate of return is 3%
and safety is insured up to
$5000 by the F. S. L. I. C.
Write for our prospectus.

FIRST FEDERAL
Savings and Loan
A sso cia tio n o f C hicago
130 S. LaSalle St.

(

Cen. 8100

Ì

L

V

79

•
place?
W hat about yo u r Savings,
B uilding and Loan prospects in your
area w ho m ake up th e audiences in
ev ery g a th e rin g th a t tak es place in
yo u r town? See w h a t I m ean?
I should like to ask and answ er th is
question! W h at is th e basic philos­
ophy of P ublic R elations as it applies
specifically to Savings, B uilding and
Loan? Sim ply th is . . . it helps in a

INVEST
WITH
SAFETY
All Accounts Insured Up to $5,000
A m u tu a l savings and h om e
fin an cin g in stitu tio n ch ar­
tered and su p ervised b y th e
U n ited States G overnm ent.

A s s e t s ....................... $1,400,000

St. Paul Federal
Savings & Loan Association
Axel A. Olson, Exec.-Sec.
4 East Fourth St., ST. PAUL, MINN.

S ince 1878

LIBERAL EARNINGS
with
SAFETY
Statement on request

Wa t e rlo o
Buildins and L o a n
Association
East Fifth at Lafayette

W ATERLO O

IO W A

SAVINGS

AND

LOAN

two-way m ovem ent of your in d u stry
to th e prospect and your prospect to
th e industry! T here are m any th ings
w ith in th e Savings, B uilding and Loan
in d u stry w hich cannot be readily
changed because of sound economic
law s and th e state and national laws
u n d er w hich you operate. All right,
th is is clearly th e place w here Public
R elations m ust m ake your public see
th ese things your w ay and move your
pro spects’ th in k in g tow ard you! T here
m ay be certain phases of your presen t
plan of business w hich do not ju st
exactly m eet th e needs of certain pros­
pects at th e p resent tim e. Well, h e re ’s
th e place to move your organization
tow ard yo u r public by m aking the
n ecessary changes w ithin reason! I t ’s
a two-way stretch th a t “girdles” the
area know n as “profit” !
W ho pays for Public Relations? . . .
p erm it me to rep eat m y opening sta te ­
m ent . . .Y o u pay for Public R elations
if you ignore th em . . . th ey pay for
th em selves over and over again if you
use th em intelligently.
You don’t have to w ait for th e fu tu re
. . . you can m ake it w ith a p ersisten t
pro gram of Public R elations!

F ran k fo rd , P ennsylvania, th e people
w ho lent th e m oney w ere largely tex ­
tile w o rkers in th e village factory, w ho
in tu rn expected and received th e sam e
k ind of credit later on. In th e public
housing projects of today th e b u rd en
of financing falls on the public, w hich
is m ainly m ade up of w age earners,
too. B ut in the m odern case th e fac-

The First Loan
The first loan from th e first A m eri­
can low-cost housing fund w as m ade
109 y ears ago in April, th e U nited
States Savings and Loan League points
out. On A pril 11, 1831, an application
for $375 w as approved by th is coun­
tr y ’s first savings, building and loan
association, w hose un o er loan lim it
w as $2,500, m aking it exclusively a
w orking-m en’s housing proposition.
T he an n iv ersary w as celebrated this
y ear by th e g ran tin g of some 1.500
loans th a t day by th e savings, building
and loan associations w hich have
sp ru n g from th a t root, it is estim ated
by George W. W est, A tlanta, Georgia,
p resid en t of th e League. He indicated
th a t m ore th a n half of th e loans m ade
A pril 11, 1940, w ere still for lesser
am ounts th a n $2,500', although th e orig­
inal lim itations on size of th e loans no
longer hold in th e associations.
“The chief co n trast betw een this low
cost housing m ovem ent of 100 years
ago and today’s new experim ents w ith
g o v ernm ent bu ilt low -rent housing lies
in th e fact th a t all of th e m oney lent
for th is purpose in 1831 w as to help
people own hom es,” said Mr. W est,
“w hereas th e m illions w hich the gov­
ern m en t is lending for building p u r­
poses today is for re n ta l houses only.
“In th e final analysis th e lenders of
th e m oney are the com m on people of
th e U nited States in both cases. In the
first building and loan association of

KOCHBROTHERS
PR IM ER S - BOOHBinOERS - OFFICE OUTFITTERS
STflTIOIlERS - BUSII1ESS mflCHIlìES

G R fl n D

fl V E fl U E

RT

Specialized[
HARVESTING MACHINERY
1886

1940

Threshers Combines
Corn Pickers
D e p e n d a b le p rod u cts fo r over 5 0
years to H arvest and T h resh all
gra in s and seed s.
A good
ow n ers.

in v estm en t

fo r

farm

A p r o fita b le b u sin ess fo r dealers.
S a fe an d d esirab le fa r m p ap er is
p r o fita b le fo r lo ca l fin a n c in g .

□

Wood Bros. Thresher Co.
D e s M oin es, Iow a

Northwestern Banker

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

FOURTH

June 19JO

MERCHANTS
MUTUAL

BONDING
COMPANY

«

Incorporated 1933

H om e Office
V A L L E Y B A N K B U IL D IN G

Des Moines, Iowa
•

*

This is Iowa’s oldest surety company.
A progressive company with experi­
enced, conservative management. We
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To be the exclusive representative of
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»

•

W rite to

E. H. WARNER
S ecr eta ry and M an ager

I o w a ’s L a r g e st B u s in e s s T r a in in g S ch o o l

Many hanks, bond-houses, insurance
companies and other financial insti­
tutions employ A. I. B. graduates.
Write or telephone when you need
efficient office employes.
E. O. EENTON, Director

American Institute of Business
DES MOINES
10th and Grand
Tel. 4-4221

to ry w age earn er is often providing a
subsidy for people of p re tty m uch his
ow n statu s in life, a subsidy w hich he
w ill not get him self. F ro m these con­
siderations w orking m en as a group
w ere b e tte r off u n d er th e low-costing
housing plan of 109 y ears ago th an
th ey are u n der th e m uch touted one of
today. A nd w h at is m ore, for people
w ith reg u lar incom es and a living
wage, th e old w ay is still available
th ro u g h existing savings, building and
loan associations.”
U nder the plan of th e original sav­
ings and loan association, each w orker
w ho expected to buy or build a hom e
subscribed for one or m ore $500 shares
of stock in the association and m atured
them by m onthly paym ents. A m em ­
ber could borrow as m uch as the face
value of the shares subscribed for. No
one could subscribe for m ore th a n five
shares, w hich w ould m ean $2,500 at
m atu rity , and th u s a lim it of $2,500 on
individual loans. The first loan appli­
can t to be g ran ted th e m oney had only
one sh are subscribed. He w as a combm ak er in th e tow n of F ran k fo rd , by
th e nam e of Comly Rich, w ho also
acted as a borough policem an and
lighted th e village lamps.
Loans in th e original association
w ere paid off in m onthly in stallm ents
ju st as th ey are today in savings, build­
ing and loan associations. Comly Rich
paid $5.50 a m onth, for his three-room
fram e house, including th e paym ent on
his sh ares plus th e in te re st on his loan,
at 4276 O rchard Street, Philadelphia.
“G ranted th a t th is w as in a tim e of
m uch low er real estate values and
low er general cost of living, it is still
notable th a t w orkingm en could get
hom es for a $5.50 m onthly outlay,
w hen th ey w ere buying them , w h ere­
as, public low-cost housing ren tals to­
day, w hich only pile up re n t receipts
for th e fam ily, seldom reach an yw here
n ear th is low figure, w ith subsidies and
all,” said Mr. W est. “W ith wage scales
so m uch h igher today th a n th ey w ere
in 1831, the difference betw een th e cost
of ow ning th em and public re n tin g
now is all the m ore m ark ed .”

Annoying

I n c r e a se Your
U n d iv i d e d P r o f it s
by using our special forms in your
Collection Department.
Our Nos.
258 and 256 are designed for that par­
ticular purpose; 375 duplicate sets per
book. Single books $3.00, three $8.25,
six $16.00. We send prepaid when
remittance accompanies the order.

L. W. Holley & Sons Company
Com plete

Bank Outfitters

100 E a st G rand

Northwestern Banker

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

D es M oin es, Iow a

June 19J0

“You know, I th in k m y pal w as
d ru n k last n ig h t.”
“H ow ’s th a t? ”
“W hy, he came in and jum ped on
th e bed.”
“W ell?”
“The bed w asn ’t th e re .”

Inconsistent
A conscientious fath er stopped
span k in g his son. “A nd now, m y boy,
tell me w hy I have punished you.”
The hoy w ent on crying. “T h a t’s it,”
he said, blubbering w ith indignation.

“F irst you pound th e life out of me,
and th en you don’t know w h at you’ve
done it for.”

D E S M O IN E S , IO W A

BANKER
AGENTS
W ANTED
T h e o ld est m u tu a l co m p a n y o f
its k in d in A m erica offers lib er a l
agen cy contracts coverin g—

• AUTO INSURANCE
• TORNADO INSURANCE
• TOWN DWELLING
INSURANCE
• HAIL INSURANCE
on grow ing cro p s
Over $1,000.000 cash su rp lus —
47 years o f p roven p ro tectio n .
Write for our liberal proposition to
bank representatives.

The full
length mirror
is very frank
in sizing up
your appearance.
Have you looked
at yourself
lately?

FR A N K E L ' S
D E S M O IN E S

81

I n d e x to
Advertisers

F i r s t N a t i o n a l B a n k , C h i c a g o .................
F i r s t N a t i o n a l B a n k , O m a h a .......................
F i r s t N a t i o n a l B a n k , S i o u x C i t y ..................
F i r s t N a t i o n a l B a n k , S t. P a u l .......................
F i r s t N a t i o n a l B a n k , St. L o u i s ..................
F i r s t N a t i o n a l B a n k a n d T r u s t Co.,
M i n n e a p o l i s ..........................................................
F i r s t W i s c o n s i n N a t i o n a l B a n k ....................
F i s h e r C o m p a n y .......................................................
F r a n k e l C l o t h i n g C o m p a n y ............................

75
38
63
51
72
49
68
6
80

A

A l l e n W a l e s A d d i n g - M a c h i n e C o r p .......... 83
A . C. A l l y n a n d C o m p a n y ................................. 33
A m e r i c a n I n s t i t u t e o f B u s i n e s s ..................80
A m e r i c a n N a t i o n a l B a n k a n d T r u s t C o . . 62
A s h m a n C o m p a n y , C. S ........................................ 55
It

B a n k e r s T r u s t C o m p a n y ................................60-6 1
B r e w e r C o m p a n y , V . W ..................................... 33

C
C a s t l e H o t e l ............................................................... 39
C e n t r a l H a n o v e r B a n k a n d T r u s t C o . . . 74
C e n t r a l N a t i o n a l B a n k a n d T r u s t C o .. . . 3
C i t y N a t i o n a l B a n k a n d T r u s t C o .......... 42
C o n tin e n ta l Illin o is N a tio n a l B a n k a n d
T r u s t C o ..................................................................... 73
C o n t i n e n t a l N a t i o n a l B a n k ............................ 43

G

G e n e r a l A m e r i c a n L i f e I n s u r a n c e C o . . . 26
G e n e r a l M o t o r s A c c e p t a n c e C o r p ............... 31

II
H a w k e y e M u t u a l H a i l I n s . A s s n ...............
H o l l e y , L. W . a n d S o n s ......................................
H om e B u ild in g an d L o an A sso c ia tio n ..
H o m e F e d e ra l S a v in g s a n d L o a n A ssn ..
H o m e I n s u r a n c e C o m p a n y ..............................
H o t e l B i s m a r c k .......................................................
H o t e l W e l l i n g t o n .....................................................

81
80
78
78
5
81
41

>1
M c G u i r e , W e l c h a n d C o m p a n y ..................
M a n u f a c t u r e r s T r u s t C o m p a n y ..................
M e r c h a n t s N a t i o n a l B a n k ..............................
M e r c h a n t s M u t u a l B o n d i n g C o ....................
M id lan d N a tio n a l B a n k a n d T r u s t C o ...
M i n n e s o t a C o m m e r c i a l M e n ’s A s s n ..........
M o r t g a g e I n v e s t m e n t C o r p o r a t i o n ..........

33
41
2
80
50
55
32

IV

N a t i o n a l B a n k o f W a t e r l o o ...........................
N e w h o u s e P a p e r C o m p a n y ..............................
N o r t h e r n T r u s t C o m p a n y .................................
N o rth w e ste rn N atio n al B an k and T ru st
C o m p a n y .................................................................

65
56
71
46

O
Om aha

N ational

B a n k ...................................... 21
P

P h i l a d e l p h i a N a t i o n a l B a n k ......................... 23
P o l i c y h o l d e r s M u t u a l C a s u a l t y C o ............ 81
P o lk C o u n ty F e d e ra l S av in g s a n d L oan
A s s n ............................................................................... 78
S

I
I n v e s t o r s S y n d i c a t e ............................................. 53
I o w a D es M o in es N a tio n a l B a n k a n d
T r u s t C o ..................................................................... 84
I o w a I n v e s t m e n t B a n k e r s A s s n .................... 29

S h a w , M c D e r m o t t a n d S p a r k s ....................
S t. P a u l F e d e r a l S a v i n g s a n d L o a n . . . .
S t. P a u l M e r c u r y I n d e m n i t y C o m p a n y . .
S t o c k Y a r d s N a t i o n a l B a n k , S t. P a u l . .

30
79
52
54

n

.1

U

F . F . D a v e n p o r t a n d C o m p a n y ...........4 3 -6 8
D e L u x e C h e c k P r i n t e r s , I n c ................. 42
D e v i n e , a n d C o m p a n y , C. J .................... 28
D e s M o in e s B ldg., L o a n a n d S a v in g s
A s s n , ........................................................................... 78
D o u g l a s G u a r d i a n W a r e h o u s e C o r p ..... 34
D r o v e r s N a t i o n a l B a n k .................................... 69

J a m i e s o n a n d C o m p a n y ...................................... 54

U n i t e d S t a t e s C h e c k B o o k C o ...................... 66
U n i t e d S t a t e s N a t i o n a l B a n k ....................... 36
U n i t e d F e d e r a l S a v i n g s a n d L o a n A s s n . 76

E

E m p i r e N a t i o n a l B a n k ...................................... 48
E p p l e y H o t e l s C o m p a n y ................................. 34
F

F arm
an d H o m e S av in g s a n d L oan
A s s n .......................................................................... 76
F a r m e r s M u t u a l H a i l I n s . A s s n , o f I o w a 80
F e d e r a l D i s c o u n t C o r p o r a t i o n ............... 32
F e d e r a l H o m e L o a n B a n k o f D e s M o i n e s 76
F i r s t a n d A m e ric a n N a tio n a l B a n k of
D u l u t h ...................................................................... 54
F i r s t F e d e r a l S a v in g s a n d L o a n A ssn.,
C h i c a g o .................................................................... 78
F i r s t F e d e r a l S a v in g s a n d L o a n A ssn.,
M i n n e a p o l i s .......................................................... 78

K
K i r k e b y H o t e l s G r o u p ........................................
K o c h B r o t h e r s ..........................................................

56
79

V

V a l l e y S a v i n g s B a n k ........................................... 68

I,

L a M o n t e a n d S o n , G e o r g e ..............................
L a m s o n B r o t h e r s a n d C o m p a n y ..................
L e s s i n g A d v e r t i s i n g C o m p a n y ....................
L i v e S t o c k N a t i o n a l B a n k , C h i c a g o ..........
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 .............
L ive S to c k N a tio n a l B an k , S ioux C ity . .

4
35
80
64
40
44

W

W a l t e r s C o m p a n y , C h a r l e s E .........................
W a t e r l o o B u i l d i n g a n d L o a n A s s n ..........
W e s s l i n g S e r v i c e s ..................................................
W e s t e r n M u t u a l F i r e I n s u r a n c e C o ..........
W o o d B r o s . T h r e s h e r C o m p a n y ..................

41
79
70
24
79

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82

In

th e

DIRECTORS'

Room

Serious Problem

Too Busy

T hey w ere ch attin g in th e clubhouse,
afte r a stren u o u s eighteen holes.
“T his m a tte r of b eau tify in g th e
course is a lot of ru b b ish ,” said one.
“T he question of scenery should not
e n te r into golf.”
“C ertainly not,” agreed th e other.
“The big question is how to keep golf
from en terin g in to th e scenery.”

M other—Mary, I w ish you’d go and
tell your fa th e r and Mr. Jones th a t
w e’d like th em to come into th e draw ­
ing room.
M ary—B ut I ’ve ju st looked into th e
library, m um m ie, and th e y ’re still v ery
busy playing, “H ave you h eard th is
one?”

O r Minnie the Mooch
“Now, boys,” said th e teacher, “tell
me th e signs of th e zodiac. You first,
T hom as.”
“T aurus, th e Bull.”
“Right! Now, you, H arold, an o th er
one.”
“Cancer, th e Crab.”
“R ight again. A nd now it’s y o u r
tu rn , A lbert.”
The boy looked puzzled, h esitated a
m om ent, and th e n b lu rte d out “Mickey,
th e M ouse.”

Lesson Number One
“My boy,” said th e business m an to
his son, “th e re are tw o th in g s th a t are
vitally n ecessary if you are to succeed
in business.”
“W h at are they, dad?”
“H onesty and sagacity.”
“W hat is h o n esty ?”
“A lw ays—no m a tte r w h at happens,
no m a tte r how ad versely it m ay affect
you—alw ays keep y o u r w ord once you
have given it.”
‘A nd sagacity?”
“N ever give y o u r w ord.”

And He Had
“W h at did H ogan say w hen Kelly
called him a liar?”
“N o th in ’ m uch.”
“T h a t’s funny. H ogan used to be a
hot-tem pered m an.”
“Well, he n ever said a w ord except
‘H ave ye had enough y et?’ ”

Make 'Em Like It
“Now, girls,” said th e re sta u ra n t
m anager, “I w an t you all to look your
best today. Add a little dab of pow der
to y o u r cheeks and take a bit m ore care
w ith y our h air.”
“S om ething special on?” asked th e
head w aitress.
“No,” inform ed th e m anager. “The
beef’s tough.”

Rough and Tough
F ilm D irector: “So you th in k you
can stan d the severe duties of a film
actor? You know, in our business we
m ay find it necessary to th ro w you
dow n a flight of stairs into a b arrel of
w a te r!”
A pplicant: “Oh, I can stan d th at. I
w as collector for an in stallm en t fu rn i­
tu re house for th ree y ears.”

One a Day
Do Tell!
A w om an had gone to Scotland for
th e first tim e in h er life. On h e r re tu rn
to London she expressed herself as
quite su rp rised at th e com parative civ­
ilization of th e north .
“Our E n g lish custom s are spreading
rapid ly ,” she said; “even in a little
tow n like St. A ndrew s th e y have a nice
golf course.”

Yes and No
He:
She:
He:
She:
He:

“I love you.”
“R eally?”
“B ut d o n ’t tell y o u r husb an d .”
“W hy?”
“It m ight get back to m y w ife.”

W hen th e doctor arriv ed he found
th e p a tien t in tears.
“Cheer up, m y good m an,” he said,
“y o u ’ll pull th ro u g h .”
“It isn ’t th at, doctor,” groaned the
patien t, “b u t ju st th in k of all th e
m oney I ’ve sp en t for apples to keep
you aw ay.”

He Should Know
T he te n a n t w as com plaining to the
ag en t about being o v erru n w ith v e r­
min.
“W h at w ould you say,” he asked, “if
I told you th ere are mice in th e cellar
a foot long?”
“R ats!” replied th e agent, tersely.

Every Month

But Some Girls Do

H ubby: “You nev er tell me w h at
you buy! D on’t I get any voice in th e
buyin g ?”
W ifey: “C ertainly, darling! You get
th e invoice.”

“Do you play golf?” he asked of th e
sim ple b u t gushing m aiden.
“D ear me, no,” she bashfully replied.
“I don’t believe I should even know
how to hold th e caddie.”


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Federal Reserve Bank of St. Louis

Excused
Teacher: “Tommy, w h y did you not
comb your h a ir th is m orning?”
Tom m y: “No comb, sir.”
“W hy did you not borrow a comb
from your fa th e r? ”
“No hair, sir.”

Two-Timer
Two fresh m en w ere try in g to define
th e w ord “collision.” “Collision,” said
one freshm an, “is w hen tw o things
come to g eth er unexpectedly.”
“I know ,” b rig h tly replied th e o ther
freshie, “T w ins.”

Pennsylvania Dear
A girl from out of tow n decided to
m ake th e m ost of h er last evening in
State College. Along about th e seventh
or eighth fra te rn ity house, she saw,
above th e fireplace, an elk’s head to
w hich designing b ro th ers had added
eyes th a t w orked like traffic lights,
neon antlers, a van-dkye-beribboned
beard, die teeth, and a sneer.
Our girl w as equal to th e occasion,
no one h aving p u t an y th in g over on
h er th a t evening. She quietly exam ­
ined th e tro p h y from all corners and
angles of th e room, finally asked to be
introduced to th e hero w ho had bagged
it. He was, h er escort said, th e h an d ­
some, girl - surro u n d ed fellow over
there. B oring h er w ay to th e cen ter of
th e circle, she th re w back h er head,
looked up w ith a clear eye and a dis­
arm in g smile, and said:
“Thay, how dja get thuffithiently
th o u th ed to thee th u ch a thing, and
th till th ta y th ober enough to thoot it? ”
Dad: I ’m su rp rised a t you! Do you
know w h at th ey do w ith boys w ho tell
lies?”
Son: “Yes, sir. W hen th ey get old
enough th e firm sends th em out as
salesm en.”
She: “M atrim ony is a serious w ord.”
He: “You’re w rong. M atrim ony is
a sentence.”

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